Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 05, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CSTR | ||
Entity Registrant Name | CAPSTAR FINANCIAL HOLDINGS, INC. | ||
Entity Central Index Key | 0001676479 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 18,457,537 | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity File Number | 001-37886 | ||
Entity Tax Identification Number | 81-1527911 | ||
Entity Address, Address Line One | 1201 Demonbreun Street | ||
Entity Address, Address Line Two | Suite 700 | ||
Entity Address, City or Town | Nashville | ||
Entity Address, State or Province | TN | ||
Entity Address, Postal Zip Code | 37203 | ||
City Area Code | 615 | ||
Local Phone Number | 732-6400 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | TN | ||
Title of 12(b) Security | Common Stock, $1.00 par value per share | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Public Float | $ 230,802,508 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Definitive Proxy Statement relating to the 2020 Annual Meeting of Shareholders, which will be filed within 120 days after December 31, 2019, are incorporated by reference into Part III of this Annual Report on Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 17,726 | $ 17,967 |
Interest-bearing deposits in financial institutions | 83,368 | 76,714 |
Federal funds sold | 175 | 10,762 |
Total cash and cash equivalents | 101,269 | 105,443 |
Securities available-for-sale, at fair value | 213,129 | 243,808 |
Securities held-to-maturity, fair value of $3,411 and $3,785 at December 31, 2019 and 2018, respectively | 3,313 | 3,734 |
Loans held for sale (includes $30,740 and $0 measured at fair value at December 31, 2019 and 2018, respectively) | 168,222 | 57,618 |
Loans | 1,420,102 | 1,429,794 |
Less allowance for loan losses | (12,604) | (12,113) |
Loans, net | 1,407,498 | 1,417,681 |
Premises and equipment, net | 19,184 | 18,821 |
Restricted equity securities | 13,689 | 12,038 |
Accrued interest receivable | 5,792 | 5,964 |
Goodwill | 37,510 | 37,510 |
Core deposit intangible, net | 6,883 | 8,538 |
Other real estate owned, net | 1,044 | 988 |
Other assets | 59,668 | 51,740 |
Total assets | 2,037,201 | 1,963,883 |
Deposits: | ||
Non-interest-bearing | 312,096 | 289,552 |
Interest-bearing | 607,211 | 434,921 |
Savings and money market accounts | 506,692 | 497,108 |
Time | 303,452 | 348,427 |
Total deposits | 1,729,451 | 1,570,008 |
Federal Home Loan Bank advances | 10,000 | 125,000 |
Other liabilities | 24,704 | 14,496 |
Total liabilities | 1,764,155 | 1,709,504 |
Shareholders’ equity: | ||
Series A Nonvoting Noncumulative Perpetual Convertible Preferred Stock, $1 par value; 5,000,000 shares authorized; 0 and 878,048 shares issued and outstanding at December 31, 2019 and 2018, respectively | 878 | |
Additional paid-in capital | 207,083 | 211,789 |
Retained earnings | 46,218 | 27,303 |
Accumulated other comprehensive loss, net of income tax | 1,383 | (3,316) |
Total shareholders’ equity | 273,046 | 254,379 |
Total liabilities and shareholders’ equity | 2,037,201 | 1,963,883 |
Voting | ||
Shareholders’ equity: | ||
Common stock | $ 18,362 | 17,592 |
Nonvoting | ||
Shareholders’ equity: | ||
Common stock | $ 133 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Securities held to maturity, fair value | $ 3,411,000 | $ 3,785,000 |
Loans held for sale carried at fair value | $ 30,740,000 | $ 0 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 878,048 |
Preferred stock, shares outstanding | 0 | 878,048 |
Voting | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 18,361,922 | 17,592,160 |
Common stock, shares outstanding | 18,361,922 | 17,592,160 |
Nonvoting | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 0 | 132,561 |
Common stock, shares outstanding | 0 | 132,561 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||
Loans, including fees | $ 82,828,000 | $ 60,751,000 | $ 45,601,000 |
Securities: | |||
Taxable | 4,619,000 | 4,184,000 | 3,696,000 |
Tax-exempt | 1,438,000 | 1,201,000 | 1,230,000 |
Federal funds sold | 26,000 | 63,000 | 41,000 |
Restricted equity securities | 755,000 | 571,000 | 396,000 |
Interest-bearing deposits in financial institutions | 1,881,000 | 1,011,000 | 551,000 |
Total interest income | 91,547,000 | 67,781,000 | 51,515,000 |
Interest expense: | |||
Interest-bearing deposits | 7,538,000 | 4,164,000 | 2,447,000 |
Savings and money market accounts | 7,266,000 | 5,446,000 | 3,188,000 |
Time deposits | 7,542,000 | 3,940,000 | 2,445,000 |
Federal funds purchased | 4,000 | 3,000 | 13,000 |
Securities sold under agreements to repurchase | 5,000 | 3,000 | |
Federal Home Loan Bank advances | 1,444,000 | 2,533,000 | 1,559,000 |
Total interest expense | 23,799,000 | 16,089,000 | 9,652,000 |
Net interest income | 67,748,000 | 51,692,000 | 41,863,000 |
Provision for loan losses | 761,000 | 2,842,000 | 12,870,000 |
Net interest income after provision for loan losses | 66,987,000 | 48,850,000 | 28,993,000 |
Noninterest income: | |||
Noninterest income | 9,467,000 | 5,653,000 | 6,238,000 |
Net gain (loss) on sale of securities | (99,000) | 3,000 | (66,000) |
Tri-Net fees, net | 2,785,000 | 1,503,000 | 1,002,000 |
Other noninterest income | 8,986,000 | 6,150,000 | 2,218,000 |
Total noninterest income | 24,274,000 | 15,459,000 | 10,908,000 |
Noninterest expense: | |||
Salaries and employee benefits | 35,542,000 | 28,586,000 | 20,400,000 |
Data processing and software | 6,961,000 | 3,835,000 | 2,786,000 |
Professional fees | 2,102,000 | 1,608,000 | 1,522,000 |
Occupancy | 3,345,000 | 2,336,000 | 2,025,000 |
Equipment | 3,723,000 | 2,471,000 | 2,071,000 |
Regulatory fees | 591,000 | 1,028,000 | 1,111,000 |
Merger related expenses | 2,654,000 | 9,803,000 | |
Amortization of intangibles | 1,655,000 | 465,000 | 48,000 |
Other operating | 5,422,000 | 3,355,000 | 3,802,000 |
Total noninterest expense | 61,995,000 | 53,487,000 | 33,765,000 |
Income before income taxes | 29,266,000 | 10,822,000 | 6,136,000 |
Income tax expense | 6,844,000 | 1,167,000 | 4,635,000 |
Net income | $ 22,422,000 | $ 9,655,000 | $ 1,501,000 |
Per share information: | |||
Basic net income per share of common stock | $ 1.25 | $ 0.73 | $ 0.13 |
Diluted net income per share of common stock | $ 1.20 | $ 0.67 | $ 0.12 |
Weighted average shares outstanding: | |||
Basic | 17,886,164 | 13,277,614 | 11,280,580 |
Diluted | 18,613,224 | 14,480,347 | 12,803,511 |
Treasury Management And Other Deposit Service Charges | |||
Noninterest income: | |||
Noninterest income | $ 3,135,000 | $ 2,150,000 | $ 1,516,000 |
Mortgage Banking Income | |||
Noninterest income: | |||
Noninterest income | $ 9,467,000 | $ 5,653,000 | $ 6,238,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 22,422 | $ 9,655 | $ 1,501 |
Unrealized gains (losses) on securities available-for-sale: | |||
Unrealized holding gains (losses) arising during the period | 6,321 | (2,491) | 4,855 |
Reclassification adjustment for losses (gains) included in net income | 99 | (3) | 66 |
Tax effect | (1,678) | 652 | (1,884) |
Net of tax | 4,742 | (1,842) | 3,037 |
Unrealized losses on securities transferred to held-to-maturity: | |||
Reclassification adjustment for losses included in net income | 14 | 190 | |
Tax effect | (4) | (73) | |
Net of tax | 10 | 117 | |
Unrealized (losses) gains on cash flow hedges: | |||
Unrealized holding (losses) gains arising during the period | (702) | 263 | (72) |
Reclassification adjustment for losses included in net income | 878 | 920 | 863 |
Tax effect | (219) | (140) | (62) |
Net of tax | (43) | 1,043 | 729 |
Other comprehensive income (loss) | 4,699 | (789) | 3,883 |
Comprehensive income | $ 27,121 | $ 8,866 | $ 5,384 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Total | Preferred Stock | Common Stock, Voting | Common Stock, Nonvoting | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2016 | $ 139,207,000 | $ 878,000 | $ 11,205,000 | $ 116,143,000 | $ 17,132,000 | $ (6,151,000) | |
Beginning balance, shares at Dec. 31, 2016 | 11,204,515 | ||||||
Net issuance of restricted common stock | (244,000) | $ 36,000 | (280,000) | ||||
Net issuance of restricted common stock, shares | 35,714 | ||||||
Stock-based compensation expense | 1,061,000 | 1,061,000 | |||||
Excess tax benefit from stock compensation | 1,011,000 | $ 154,000 | 857,000 | ||||
Excess tax benefit from stock compensation | 154,050 | ||||||
Net exercise of common stock options | 527,000 | $ 55,000 | $ 133,000 | 339,000 | |||
Net exercise of common stock options, shares | 55,186 | 132,561 | |||||
Reclassification of accumulated other comprehensive income due to tax rate change | 259,000 | (259,000) | |||||
Net income | 1,501,000 | 1,501,000 | |||||
Other Comprehensive income (loss) | 3,883,000 | 3,883,000 | |||||
Ending balance at Dec. 31, 2017 | 146,946,000 | 878,000 | $ 11,450,000 | $ 133,000 | 118,120,000 | 18,892,000 | (2,527,000) |
Ending balance, shares at Dec. 31, 2017 | 11,449,465 | 132,561 | |||||
Net issuance of restricted common stock | (445,000) | $ 107,000 | (552,000) | ||||
Net issuance of restricted common stock, shares | 107,640 | ||||||
Stock-based compensation expense | 2,079,000 | 2,079,000 | |||||
Net exercise of common stock options | 3,653,000 | $ 667,000 | 2,986,000 | ||||
Net exercise of common stock options, shares | 666,964 | ||||||
Exercise of common stock warrants | 1,606,000 | $ 186,000 | 1,420,000 | ||||
Exercise of common stock warrants, shares | 186,175 | ||||||
Issuance of common stock in conjunction with Athens acquisition, net of issuance costs | 92,918,000 | $ 5,182,000 | 87,736,000 | ||||
Issuance of common stock in conjunction with Athens acquisition, net of issuance costs, shares | 5,181,916 | ||||||
Common and preferred stock dividends declared | (1,244,000) | (1,244,000) | |||||
Net income | 9,655,000 | 9,655,000 | |||||
Other Comprehensive income (loss) | (789,000) | (789,000) | |||||
Ending balance at Dec. 31, 2018 | 254,379,000 | 878,000 | $ 17,592,000 | $ 133,000 | 211,789,000 | 27,303,000 | (3,316,000) |
Ending balance, shares at Dec. 31, 2018 | 17,592,160 | 132,561 | |||||
Net issuance of restricted common stock | (304,000) | $ (9,000) | (295,000) | ||||
Net issuance of restricted common stock, shares | (8,721) | ||||||
Stock-based compensation expense | 1,262,000 | 1,262,000 | |||||
Net exercise of common stock options | $ 1,931,000 | $ 273,000 | 1,658,000 | ||||
Net exercise of common stock options, shares | 286,701 | 272,660 | |||||
Reclassification of accumulated other comprehensive income due to tax rate change | $ 259,000 | ||||||
Conversion of preferred stock to common stock | $ (878,000) | $ 878,000 | |||||
Conversion of preferred stock, shares | 878,048 | ||||||
Conversion of non-voting common stock to common stock | $ 133,000 | $ (133,000) | |||||
Conversion of non-voting common stock to common stock, shares | 132,561 | (132,561) | |||||
Repurchase of common stock | (7,836,000) | $ (505,000) | (7,331,000) | ||||
Repurchase of common stock, shares | (504,786) | ||||||
Common and preferred stock dividends declared | (3,507,000) | (3,507,000) | |||||
Net income | 22,422,000 | 22,422,000 | |||||
Other Comprehensive income (loss) | 4,699,000 | 4,699,000 | |||||
Ending balance at Dec. 31, 2019 | $ 273,046,000 | $ 18,362,000 | $ 207,083,000 | $ 46,218,000 | $ 1,383,000 | ||
Ending balance, shares at Dec. 31, 2019 | 18,361,922 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||
Common and preferred stock, dividends per share | $ 0.05 | $ 0.04 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 22,422,000 | $ 9,655,000 | $ 1,501,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Provision for loan losses | 761,000 | 2,842,000 | 12,870,000 |
Accretion of discounts on acquired loans and deferred fees | (3,737,000) | (2,978,000) | (1,533,000) |
Depreciation and amortization | 2,883,000 | 1,028,000 | 450,000 |
Net amortization of premiums on investment securities | 807,000 | 1,007,000 | 1,259,000 |
Net loss (gain) on sale of securities | 99,000 | (3,000) | 66,000 |
Mortgage banking income | (9,467,000) | $ (5,653,000) | $ (6,238,000) |
Type of Revenue [Extensible List] | us-gaap:MortgageBankingMember | us-gaap:MortgageBankingMember | |
Tri-Net fees | (2,785,000) | $ (1,503,000) | $ (1,002,000) |
Net gain on sale of loans | (803,000) | (248,000) | (113,000) |
Net loss on disposal of premises and equipment | 137,000 | ||
Net gain on sale of other real estate owned | (3,000) | 0 | 0 |
Stock-based compensation | 1,262,000 | 2,079,000 | 1,061,000 |
Deferred income tax expense | 2,585,000 | 1,175,000 | 4,385,000 |
Origination of loans held for sale | (824,021,000) | (516,341,000) | (565,372,000) |
Proceeds from loans held for sale | 725,669,000 | 540,448,000 | 540,123,000 |
Cash payments arising from operating leases | (1,786,000) | ||
Net (increase) decrease in accrued interest receivable and other assets | (10,461,000) | 1,395,000 | (1,760,000) |
Net increase (decrease) in accrued interest payable and other liabilities | 11,887,000 | 682,000 | (2,448,000) |
Net cash provided by (used in) operating activities | (84,688,000) | 33,585,000 | (16,614,000) |
Activities in securities available-for-sale: | |||
Purchases | (59,473,000) | (44,787,000) | (30,525,000) |
Sales | 68,068,000 | 38,322,000 | 46,762,000 |
Maturities, prepayments and calls | 27,624,000 | 19,245,000 | 18,828,000 |
Activities in securities held-to-maturity: | |||
Maturities, prepayments and calls | 395,000 | 1,560,000 | |
Purchase of restricted equity securities | (1,651,000) | (12,000) | (2,774,000) |
Net increase (decrease) in loans | 13,782,000 | (139,124,000) | (20,916,000) |
Purchase of premises and equipment | (1,582,000) | (4,244,000) | (1,075,000) |
Proceeds from sale of other real estate owned | 127,000 | ||
Proceeds from sale of premises and equipment | 3,000 | ||
Proceeds from BOLI death benefit | 3,416,000 | ||
Cash received from acquisitions, net | 12,053,000 | ||
Net cash provided by (used in) investing activities | 47,290,000 | (115,131,000) | 11,863,000 |
Cash flows from financing activities: | |||
Net increase (decrease) in deposits | 159,443,000 | 45,622,000 | (8,857,000) |
Proceeds from Federal Home Loan Bank advances | 75,000,000 | 125,000,000 | 135,000,000 |
Payments on Federal Home Loan Bank advances | (190,000,000) | (70,000,000) | (120,000,000) |
Repurchase of common stock | (7,836,000) | ||
Exercise of common stock options and warrants, net of repurchase of restricted shares | 1,627,000 | 4,814,000 | 1,294,000 |
Termination of interest rate swap agreement | (1,503,000) | ||
Common and preferred stock dividends paid | (3,507,000) | (1,244,000) | |
Net cash provided by financing activities | 33,224,000 | 104,192,000 | 7,437,000 |
Net increase (decrease) in cash and cash equivalents | (4,174,000) | 22,646,000 | 2,686,000 |
Cash and cash equivalents at beginning of period | 105,443,000 | 82,797,000 | 80,111,000 |
Cash and cash equivalents at end of period | 101,269,000 | 105,443,000 | 82,797,000 |
Supplemental disclosures of cash paid: | |||
Interest paid | 24,216,000 | 15,378,000 | 9,540,000 |
Income taxes | 716,000 | 1,716,000 | 1,047,000 |
Supplemental disclosures of noncash transactions: | |||
Transfer of loans to other real estate | 180,000 | 0 | 0 |
Loans charged off to the allowance for loan and lease losses | 798,000 | $ 4,954,000 | 12,769,000 |
Conversion of preferred stock and non-voting common stock | 1,011,000 | ||
Lease liabilities arising from obtaining right-of-use assets | $ 13,512,000 | ||
Securities transferred from held-to-maturity to available-for-sale | 41,665,000 | ||
Loans transferred from held-for-sale to held-for-investment | $ 507,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements as of December 31, 2019 and 2018 and for each of the three years in the period ended December 31, 2019 include CapStar Financial Holdings, Inc. and it’s wholly owned subsidiary, CapStar Bank (the “Bank”, together referred to as the “Company”). Significant intercompany transactions and accounts are eliminated in consolidation. On February 5, 2016, CapStar Financial Holdings, Inc. acquired all of the Bank’s issued and outstanding shares of common stock, preferred stock, common stock options and warrants, and the Bank became the wholly owned subsidiary of CapStar Financial Holdings, Inc. (the “Share Exchange”). The consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and conform to general practices within the banking industry. Business Combinations The Company accounts for business combinations using the acquisition method of accounting. The accounts of an acquired entity are included as of the date of acquisition, and any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. Under this method, all identifiable assets acquired, including purchased loans, and liabilities assumed are recorded at fair value. The Company typically issues common stock and/or pays cash for an acquisition, depending on the terms of the acquisition agreement. The value of shares of common stock issued is determined based on the market price of the stock as of the closing of the acquisition. Nature of Operations Through the Bank, the Company provides full banking services to consumer and corporate customers located primarily in Tennessee. The Bank operates under a state bank charter and is a member of the Federal Reserve System. As a state member bank, the Bank is subject to regulations of the Tennessee Department of Financial Institutions, the Board of Governors of the Federal Reserve System (the “Federal Reserve”), and the Federal Deposit Insurance Corporation. Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, determination of impairment of intangible assets, including goodwill, the valuation of our investment portfolio and deferred tax assets. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits in financial institutions and federal funds sold. Generally, federal funds sold are purchased and sold for one-day periods. The Company maintains deposits in excess of the federal insurance amounts with other financial institutions. Management makes deposits only with financial institutions it considers to be financially sound. Securities The Bank accounts for securities under the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320, Investments – Debt and Equity Securities Securities Held-to-Maturity - Debt securities are classified as held to maturity securities when the Bank has the positive intent and ability to hold the securities to maturity. Securities held to maturity are carried at amortized cost. Trading Securities - Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. No securities have been classified as trading securities. Securities Available-for-Sale - Debt securities not classified as either held to maturity securities or trading securities are classified as available for sale securities. Securities available for sale are carried at estimated fair value with unrealized gains and losses excluded from earnings and reported as a separate component of shareholders’ equity in other comprehensive income (loss). Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Realized gains and losses from the sales of securities are recorded on the trade date and determined using the specific-identification method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, the financial condition and near-term prospects of the issuer and any collateral underlying the relevant security. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Loans Held For Sale and Fair Value Option The Company classifies loans as loans held for sale when originated with the intent to sell. As of April 1, 2019, the Company elected the fair value option for all residential mortgage loans originated with the intent to sell. This election allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. The Company has not elected the fair value option for other loans held for sale primarily because they are not economically hedged using derivative instruments. The fair value of residential mortgage loans originated with the intent to sell is based on traded market prices of similar assets. Other loans held for sale that are recorded at lower of cost or fair value may be carried at fair value on a nonrecurring basis when the fair value is less than cost. For further information, see Note 24 - Fair Value. The Company does not securitize mortgage loans. If the Company sells loans with servicing rights retained, the carrying value of the mortgage loan sold is reduced by the amount allocated to the servicing right. Fair values of residential mortgage loans held for sale are based on traded market prices of similar assets. The changes in fair value are recorded as a component of mortgage banking income and included gains of $0.6 million for the year ended December 31, 2019. There were no loans held for sale recorded at fair value as of December 31, 2018. The following table summarizes the difference between the fair value and the aggregate unpaid principal balance for residential real estate loans held for sale as of December 31, 2019 (dollars in thousands): Fair Value Aggregate Unpaid Principal Balance Difference December 31, 2019 Residential mortgage loans held for sale $ 30,740 $ 30,178 $ 562 Tri-Net Fees Tri-Net fees are derived from the origination, with the intent to sell, commercial real estate loans to third-party investors. All of these loan sales transfer servicing rights to the buyer. Realized gains and losses are recognized when legal title of the loan has transferred to the investor and sales proceeds have been received and are reflected in the accompanying statements of income in Tri-Net fees, net of related costs such as commission expenses. Loans that have not been sold at period end are classified as held for sale on the balance sheet and recorded at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Loans The Company has six classes of loans for financial reporting purposes: commercial real estate, consumer real estate, construction and land development, commercial and industrial, consumer and other. The appropriate classification is determined based on the underlying collateral utilized to secure each loan. Commercial real estate loans are categorized as such based on investor exposures where repayment is largely dependent upon the operation, refinance, or sale of the underlying real estate. Commercial real estate also includes owner occupied commercial real estate. Consumer real estate consists primarily of 1-4 family residential properties including home equity lines of credit. Construction and land development loans include loans where the repayment is dependent on the successful completion and operation and/or sale of the related real estate project. Construction and land development loans include 1-4 family construction projects and commercial construction endeavors such as warehouses, apartments, office and retail space and land acquisition and development. Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. Consumer loans include all loans issued to individuals not included in the consumer real estate class. Other loans include all loans not included in the classes of loans above and leases. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well secured and in process of collection. Consumer loans and any accrued interest is typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful and collection is highly questionable. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans can also be returned to accrual status when they become well secured and in the process of collection. Acquired Loans Acquired loans are accounted for under the acquisition method of accounting. The acquired loans are recorded at their estimated fair values as of the acquisition date. Fair value of acquired loans is determined using a discounted cash flow model based on assumptions regarding the amount and timing of principal and interest payments, estimated prepayments, estimated default rates, estimated loss severity in the event of defaults, and current market rates. Estimated credit losses are included in the determination of fair value; therefore, an allowance for loan losses is not recorded on the acquisition date. An acquired loan is considered purchased credit impaired when there is evidence of credit deterioration since origination and it is probable at the date of acquisition that the Bank will be unable to collect all contractually required payments. Purchased credit impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as loan type and risk rating. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid (fair value) is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Acquired non-impaired loans are recorded at their initial fair value and adjusted for subsequent advances, pay downs, amortization or accretion of any premium or discount on purchase, charge-offs and additional provisioning that may be required. Allowance for Loan Losses The allowance for loan losses (“ALL”) is maintained at a level that management believes to be adequate to absorb expected loan losses inherent in the loan portfolio as of the balance sheet date. The allowance for loan losses is a valuation allowance for estimated credit losses inherent in the loan and lease portfolio, increased by the provision for loan losses and decreased by charge-offs, net of recoveries. Quarterly, the Company estimates the allowance required using peer group loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. The Company’s historical loss experience is based on the actual loss history by class of loan for comparable peer institutions due to the Company’s limited loss history. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries are credited to the allowance for loan losses. The Company also considers the results of the external independent loan review when assessing the adequacy of the allowance and incorporates relevant loan review results in the loan impairment and overall adequacy of allowance determinations. Furthermore, regulatory agencies periodically review the Company’s allowance for loan losses and may require the Company to record adjustments to the allowance based on their judgment of information available to them at the time of their examinations. Additional considerations are included in the determination of the adequacy of the allowance based on the continuous review conducted by relationship managers and credit department personnel. The Company’s loan policy requires that each customer relationship wherein total exposure exceeds $1.5 million be subject to a formal credit review at least annually. Should these reviews identify potential collection concerns, appropriate adjustments to the allowance may be made. The allowance consists of specific and general components as discussed below. While the allowance consists of separate components, these terms are primarily used to describe a process. Both portions of the allowance are available to provide for inherent losses in the entire portfolio. Specific Component The specific component relates to loans that are individually determined to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans meeting any of the following criteria are individually evaluated for impairment: risk rated substandard (as defined in Note 4), on non-accrual status or past due greater than 90 days. If a loan is impaired, a portion of the allowance is allocated based on the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral less costs to sell if repayment is expected solely from the collateral. Changes to the valuation allowance are recorded as a component of the provision for loan losses. TDRs are individually evaluated for impairment and included in the separately identified impairment disclosures. TDRs are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral less costs to sell. General Component The general component of the allowance for loan losses covers loans that are collectively evaluated for impairment. Large groups of homogeneous loans are collectively evaluated for impairment, and accordingly, they are not included in the separately identified impairment disclosures. The general allowance component also includes loans that are individually identified for impairment evaluation but are not considered impaired. The general component is based on historical loss experience adjusted for current factors. Due to the Company’s limited loss history, the historical loss experience is based on the actual loss history by class of loan for comparable peer institutions. The Company utilized a 33 quarter look-back period as of December 31, 2017. Subsequently, the Company increased its look-back period for a total of 37 quarters and 41 quarters as of December 31, 2018 and 2019, respectively. In the current economic environment, management believes the extension of the look-back period was necessary in order to capture sufficient loss observations to develop a reliable loss estimate of credit losses. This extension of the historical look-back period to capture the historical loss experience of peer banks was applied to all classes and segments of our loan portfolio. The actual loss experience is supplemented with other environmental factors that capture changes in trends, conditions, and other relevant factors that may cause estimated credit losses as of the evaluation date to differ from historical loss experience. The allocation for environmental factors is by nature subjective. These amounts represent estimated probable inherent credit losses, which exist but have not been captured in the historical loss experience. The environmental factors include consideration of the following: changes in lending policies and procedures, economic conditions, nature and volume of the portfolio, experience of lending management, volume and severity of past due loans, quality of the loan review system, value of underlying collateral for collateral dependent loans, concentrations, and other external factors. Servicing Rights When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in other noninterest income. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with other noninterest income on the income statement and the associated asset is included in other assets on the Consolidated Balance Sheet. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported on the income statement within other noninterest income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Net servicing fees totaled $340,000 and $102,000 for the years ended December 31, 2019 and 2018, respectively. There were no servicing fees for the year ended December 31, 2017. Late fees and ancillary fees related to loan servicing are not material. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized by the straight-line method based on the shorter of the asset lives or the expected lease terms. Useful lives for premises and equipment range from one to thirty-nine years. These assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. Leases In February 2016, the FASB issued a new accounting standard update (ASU 2016-02, Leases (Topic 842)), which requires for all operating leases the recognition of a right-of-use ("ROU") asset and a corresponding lease liability, in the Consolidated Balance Sheet. For short term leases (term of 12 months or less), a lessee is permitted to make an accounting election not to recognize lease assets and lease liabilities. The lease cost will be allocated over the lease term on a straight-line basis. There were further amendments, including practical expedients, with the issuance of ASU 2018-01, “Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842” in January 2018. In July 2018, the FASB issued ASU No. 2018-11, "Leases (Topic 842): Targeted Improvements", which provides for the option to apply the new leasing standard to all open leases as of the adoption date, on a prospective basis. On January 1, 2019, the Company adopted the new accounting standard ASU 2016-02, Leases (Topic 842) and all the related amendments ("new lease standard", "ASC 842" or "ASU 2016-02") utilizing the practical expedient to apply the new lease standard as of January 1, 2019 on a prospective basis. The Company also elected the "package of expedients" and elected as an accounting policy to exclude recording ROU assets and lease liabilities for leases that meet the definition of short-term leases. In addition to excluding short-term leases, the Company has implemented an accounting policy in which non-lease components are not separated from lease components in the measurement of ROU assets and lease liabilities for all lease contracts. The Company recognized $12.8 million in ROU assets and $13.4 million in lease liabilities as a result of applying the new lease standard as an adjustment to the opening consolidated balance sheet on January 1, 2019. The ROU assets and lease liabilities are included in other assets and other liabilities, respectively on the Consolidated Balance Sheet. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. See Note 7—Leases for additional disclosures related to leases. Bank Owned Life Insurance The Bank has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Bank owned life insurance is included in other assets on the Consolidated Balance Sheet. Securities Sold under Agreements to Repurchase The Bank enters into sales of securities under agreements to repurchase at a specified future date. Such repurchase agreements are considered financing arrangements and, accordingly, the obligation to repurchase assets sold is reflected as a liability in the balance sheets of the Bank. Repurchase agreements are collateralized by debt securities which are owned and under the control of the Bank and are included in other liabilities on the Consolidated Balance Sheet. Goodwill and Other Intangible Assets Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Company has selected October 31st as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the balance sheet. Other intangible assets consist of core deposit intangible assets arising from whole bank acquisitions and are amortized on an accelerated method over their estimated useful lives, which range from six to ten years. Other Real Estate Owned Other real estate owned (“OREO”) includes assets that have been acquired in satisfaction of debt through foreclosure and are recorded at estimated fair value less the estimated cost of disposition. Fair value is based on independent appraisals and other relevant factors. Valuation adjustments required at foreclosure are charged to the allowance for loan losses. Subsequent to foreclosure, additional losses resulting from the periodic revaluation of the property are charged to other real estate expense. Costs of operating and maintaining the properties and any gains or losses recognized on disposition are also included in other real estate expense. Improvements made to properties are capitalized if the expenditures are expected to be recovered upon the sale of the properties. Restricted Equity Securities The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest additional amounts. FHLB stock is carried at cost, classified as a restricted equity security, and periodically evaluated for impairment based on an assessment of the ultimate recovery of par value. Both cash and stock dividends are reported as interest income. The Bank is also a member of the Federal Reserve System, and as such, holds stock of the Federal Reserve Bank of Atlanta (“Federal Reserve Bank”). Federal Reserve Bank stock is carried at cost, classified as a restricted equity security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as interest income. Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company’s tax returns remain open to audit under the statute of limitations by the IRS and various states for the years ended December 31, 2016 through 2019. It is the Company’s policy to recognize interest and/or penalties related to income tax matters in income tax expense. Stock-Based Compensation Stock-based compensation expense is recognized based on the fair value of the portion of stock-based payment awards that are ultimately expected to vest, reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation expense is recognized on a straight-line basis over the requisite service period for the entire award. For awards with performance vesting criteria, anticipated performance is projected to determine the number of awards expected to vest, and the corresponding aggregate expense is adjusted to reflect the elapsed portion of the performance period. Advertising Costs Advertising costs are expensed as incurred. Advertising expense was approximately $370,000, $383,000 and $310,000 for the years ended December 31, 2019, 2018 and 2017, respectively and is included in other operating expenses on the Consolidated Statements of Income. Off-Balance Sheet Financial Instruments In the ordinary course of business, the Bank has entered into off-balance-sheet financial instruments consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received. Derivative Instruments Derivative instruments are recorded on the balance sheet at their respective fair values. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship. If the derivative instrument is not designated as a |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition | NOTE 2 – ACQUISITIONS On October 1, 2018, the Company acquired 100% of the outstanding common shares of Athens Bancshares Company (“Athens”), the bank holding company for Athens Federal Community Bank, National Association (“Athens Federal”). Under the terms of the acquisition, Athens common shareholders received 2.864 shares of the Company’s common stock in exchange for each share of Athens common stock. With the acquisition, the Company further expanded its franchise into the East Tennessee market. Athens’ results of operations were included in the Company’s results beginning October 1, 2018. Acquisition related costs of $9,803,000 are included in the Company’s income statement for the year ended December 31, 2018. The fair value of the common shares issued as part of the consideration paid for Athens was determined by the closing price of the Company’s common shares immediately preceding the acquisition date. Goodwill of $31,291,000 arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the companies. Goodwill associated with the Athens acquisition is not amortizable for book or tax purposes. The following table summarizes the consideration paid for Athens and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (in thousands): As recorded by Athens Bancshares Initial fair value adjustments Measurement period adjustments As recorded by CapStar Financial Holdings Assets: Cash and cash equivalents $ 12,053 $ — $ — $ 12,053 Securities 67,342 84 (a) — 67,426 Loans, gross 349,597 (4,764 ) (b) — 344,833 Allowance for loan losses (4,039 ) 4,039 (c) — — Premises and equipment, net 7,637 1,571 (d) — 9,208 Core deposit intangible 2,758 6,222 (e) — 8,980 Other 29,566 944 (f) — 30,510 Total $ 464,914 $ 8,096 $ — $ 473,010 Liabilities: Deposits $ 404,027 $ 493 (g) $ — $ 404,520 Other 5,363 1,500 (h) — 6,863 Total $ 409,390 $ 1,993 $ — $ 411,383 Net identifiable assets acquired $ 61,627 Total cost of acquisition: Value of stock issued $ 86,538 Value of rolled stock options 6,380 Total cost of acquisition $ 92,918 $ 92,918 Goodwill recorded related to acquisition $ 31,291 (a) The amount represents the fair value adjustment of securities that were subsequently sold. (b) The amount represents the adjustment of the net book value of Athens’ loans to their estimated fair value based on interest rates and expected cash flows at the date of acquisition. (c) The amount represents the removal of Athens’ existing allowance for loan losses. (d) The amount represents the adjustment of the net book value of Athens’ premises and equipment to their estimated fair value. (e) The amount represents the net adjustment of removing Athens’ existing core deposit intangible from prior acquisitions and recording the fair value of the core deposit intangible representing the intangible value of the deposit base acquired and the fair value of the customer relationship. (f) The amount represents the net adjustment of the fair value of mortgage servicing rights acquired and the deferred tax asset recognized on the fair value adjustments on Athens acquired assets and assumed liabilities. (g) The amount represents the adjustment necessary because the weighted average interest rate of Athens’ time deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. (h) The amount represents the liability assumed in connection with the merger agreement whereby the Company will make a $1,500,000 charitable contribution to the Athens Foundation over a three year period. The following unaudited pro forma financial information presents the combined results of the Company and Athens as if the acquisition had occurred as of January 1, 2017, after giving effect to certain adjustments, including amortization of the core deposit intangible, and related income tax effects. The pro forma financial information does not necessarily reflect the results of operations that would have occurred had the Company and Athens constituted a single entity during such periods (in thousands, except share data): Pro forma combined twelve months ended December 31, 2018 Pro forma combined twelve months ended December 31, 2017 Net interest income $ 66,935 $ 59,148 Noninterest income 20,692 17,540 Total revenue 87,627 76,688 Net income 21,167 5,851 Per share information: Basic net income per share of common stock $ 1.24 $ 0.36 Diluted net income per share of common stock $ 1.14 $ 0.32 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | NOTE 3 – INVESTMENT SECURITIES Investment securities have been classified in the balance sheet according to management’s intent. The Company’s classification of securities at December 31, 2019 and 2018 was as follows (in thousands): December 31, 2019 December 31, 2018 Amortized Cost Gross unrealized gains Gross unrealized (losses) Estimated fair value Amortized Cost Gross unrealized gains Gross unrealized (losses) Estimated fair value Securities available-for-sale: U. S. government agency securities $ 10,421 $ 4 $ (94 ) $ 10,331 $ 11,053 $ — $ (347 ) $ 10,706 State and municipal securities 44,053 1,927 (20 ) 45,960 62,142 765 (981 ) 61,926 Mortgage-backed securities 137,305 1,834 (460 ) 138,679 146,547 776 (3,165 ) 144,158 Asset-backed securities 3,325 — (128 ) 3,197 15,437 4 (157 ) 15,284 Other debt securities 14,839 141 (18 ) 14,962 11,863 71 (200 ) 11,734 Total $ 209,943 $ 3,906 $ (720 ) $ 213,129 $ 247,042 $ 1,616 $ (4,850 ) $ 243,808 Securities held-to-maturity: State and municipal securities $ 3,313 $ 98 $ — $ 3,411 $ 3,734 $ 54 $ (3 ) $ 3,785 Total $ 3,313 $ 98 $ — $ 3,411 $ 3,734 $ 54 $ (3 ) $ 3,785 During the third quarter of 2013, approximately $36,789,000 of available for sale securities were transferred to the held to maturity category. The transfers of the securities into the held to maturity category from the available for sale category were made at fair value at the date of transfer. The unrealized holding loss at the date of the transfer continues to be reported in a separate component of shareholders’ equity and is being amortized over the remaining life of the securities as an adjustment of yield in a manner consistent with the amortization of the premiums and discounts. During the fourth quarter of 2017, approximately $41,665,000 of held to maturity securities were transferred to the available for sale category. The Company was able to make the transfer due to early adoption of ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The amortized cost and fair value of debt and equity securities at December 31, 2019, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-sale Held-to-maturity Amortized cost Estimated fair value Amortized cost Estimated fair value Due in less than one year $ 9,805 $ 9,909 $ 881 $ 884 Due one to five years 28,593 29,230 2,432 2,527 Due five to ten years 29,545 30,758 — — Due beyond ten years 1,370 1,356 — — Mortgage-backed securities 137,305 138,679 — — Asset-backed securities 3,325 3,197 — — $ 209,943 $ 213,129 $ 3,313 $ 3,411 Results from sales of debt and equity securities were as follows (in thousands): Year ended December 31 2019 2018 2017 Proceeds $ 68,068 $ 38,322 $ 46,762 Gross gains 49 116 124 Gross losses (148 ) (113 ) (190 ) The table above does not include activity from maturities, prepayments or calls on debt or equity securities. Securities with a market value of $70,350,000 and $171,542,000 at December 31, 2019 and 2018, respectively, were pledged to collateralize public deposits, derivative positions and Federal Home Loan Bank advances. At December 31, 2019 and 2018 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. The following tables show the Company’s securities with unrealized losses, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands): Less than 12 months 12 months or more Total December 31, 2019 Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses U. S. government agency securities $ 6,694 $ (51 ) $ 1,637 $ (43 ) $ 8,331 $ (94 ) State and municipal securities 2,356 (12 ) 814 (8 ) 3,170 (20 ) Mortgage-backed securities 30,570 (136 ) 21,364 (324 ) 51,934 (460 ) Asset-backed securities — — 3,197 (128 ) 3,197 (128 ) Other debt securities 3,012 (16 ) 1,502 (2 ) 4,514 (18 ) Total temporarily impaired securities $ 42,632 $ (215 ) $ 28,514 $ (505 ) $ 71,146 $ (720 ) December 31, 2018 U. S. government agency securities $ — $ — $ 10,706 $ (347 ) $ 10,706 $ (347 ) State and municipal securities 13,455 (212 ) 17,376 (772 ) 30,831 (984 ) Mortgage-backed securities 7,075 (17 ) 87,232 (3,148 ) 94,307 (3,165 ) Asset-backed securities 8,262 (145 ) 2,439 (12 ) 10,701 (157 ) Other debt securities 5,362 (200 ) — — 5,362 (200 ) Total temporarily impaired securities $ 34,154 $ (574 ) $ 117,753 $ (4,279 ) $ 151,907 $ (4,853 ) Declines in the fair value of securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment of available for sale securities related to other factors is recognized in other comprehensive income (loss). In estimating other-than-temporary impairment losses, management considers, among other things, the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. The unrealized losses shown above are primarily due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost bases, which may be maturity, the Company does not consider these securities to be other than temporarily impaired at December 31, 2019. There were no other-than-temporary impairments for the years ended December 31, 2019, 2018 or 2017. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans and Allowance for Loan and Lease Losses | NOTE 4 – LOANS AND ALLOWANCE FOR LOAN LOSSES Loans at December 31, 2019 and 2018 were as follows (in thousands): December 31, 2019 December 31, 2018 Commercial real estate $ 559,899 $ 550,446 Consumer real estate 256,097 253,562 Construction and land development 143,111 174,670 Commercial and industrial 394,408 404,600 Consumer 28,426 25,615 Other 38,161 20,901 Total 1,420,102 1,429,794 Allowance for loan losses (12,604 ) (12,113 ) Total loans, net $ 1,407,498 $ 1,417,681 At December 31, 2019, variable-rate and fixed-rate loans totaled $785,329,000 and $634,773,000, respectively. At December 31, 2018, variable-rate and fixed-rate loans totaled $827,491,000 and $602,404,000, respectively. 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 all commercial loans, and consumer relationships with an outstanding balance greater than $500,000, individually and assigns each loan a risk rating. This analysis is performed on a continual basis by the relationship managers and credit department personnel. On at least an annual basis an independent party performs a formal credit risk review of a sample of the loan portfolio. Among other things, this review assesses the appropriateness of the loan’s risk rating. The Company uses the following definitions for risk ratings: Special Mention – A special mention asset possesses deficiencies or potential weaknesses deserving of management’s attention. If uncorrected, such weaknesses or deficiencies may expose the Company to an increased risk of loss in the future. Substandard – A substandard asset is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard. Doubtful – A doubtful asset has all weaknesses inherent in one classified substandard, with the added characteristic that weaknesses make collection or liquidation in full, on the basis of existing facts, conditions, and values, highly questionable and improbable. The probability of loss is extremely high, but certain important and reasonable specific pending factors which may work to the advantage and strengthening of the asset exist, therefore, its classification as an estimated loss is deferred until a more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. Loans not falling into the criteria above are considered to be pass-rated loans. The Company utilizes six loan grades within the pass risk rating. The following table provides the risk category of loans by applicable class of loans as of December 31, 2019 and 2018 (in thousands): Non-impaired Loans December 31, 2019 Pass Special Mention Substandard Total Non-impaired Total Loans Total Commercial real estate $ 551,929 $ 915 $ 4,438 $ 557,282 $ 2,617 $ 559,899 Consumer real estate 252,952 503 1,551 255,006 1,091 256,097 Construction and land development 142,978 — 16 142,994 117 143,111 Commercial and industrial 370,475 14,341 8,241 393,057 1,351 394,408 Consumer 28,382 6 15 28,403 23 28,426 Other 38,161 — — 38,161 — 38,161 Total $ 1,384,877 $ 15,765 $ 14,261 $ 1,414,903 $ 5,199 $ 1,420,102 December 31, 2018 Commercial real estate $ 547,616 $ 177 $ 1,262 $ 549,055 $ 1,391 $ 550,446 Consumer real estate 249,273 1,676 1,691 252,640 922 253,562 Construction and land development 174,591 52 19 174,662 8 174,670 Commercial and industrial 388,719 7,790 6,545 403,054 1,546 404,600 Consumer 25,556 1 27 25,584 31 25,615 Other 20,901 — — 20,901 — 20,901 Total $ 1,406,656 $ 9,696 $ 9,544 $ 1,425,896 $ 3,898 $ 1,429,794 None of the Company’s loans had a risk rating of “Doubtful” as of December 31, 2019 or 2018. The following tables detail the changes in the ALL for the years ending December 31, 2019, 2018 and 2017 by loan classification (in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total Year ended December 31, 2019 Balance, beginning of period $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Charged-off loans — (39 ) — (455 ) (164 ) (140 ) (798 ) Recoveries 23 20 — 380 82 23 528 Provision for loan losses 267 245 (373 ) 113 199 310 761 Balance, end of period $ 3,599 $ 1,231 $ 2,058 $ 5,074 $ 222 $ 420 $ 12,604 Year ended December 31, 2018 Balance, beginning of period $ 3,324 $ 1,063 $ 1,628 $ 7,209 $ 91 $ 406 $ 13,721 Charged-off loans — — — (4,831 ) (84 ) (39 ) (4,954 ) Recoveries 22 4 — 395 75 8 504 Provision for loan losses (37 ) (62 ) 803 2,263 23 (148 ) 2,842 Balance, end of period $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Year ended December 31, 2017 Balance, beginning of period $ 2,655 $ 1,013 $ 1,574 $ 5,618 $ 76 $ 698 $ 11,634 Charged-off loans — — — (12,769 ) — — (12,769 ) Recoveries 9 — — 1,865 112 — 1,986 Provision for loan losses 660 50 54 12,495 (97 ) (292 ) 12,870 Balance, end of period $ 3,324 $ 1,063 $ 1,628 $ 7,209 $ 91 $ 406 $ 13,721 A breakdown of the ALL and the loan portfolio by loan category at December 31, 2019 and 2018 follows (in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total December 31, 2019 Allowance for Loan Losses: Collectively evaluated for impairment $ 3,599 $ 1,231 $ 2,058 $ 5,074 $ 222 $ 420 $ 12,604 Individually evaluated for impairment — — — — — — — Acquired with deteriorated credit quality — — — — — — — Balances, end of period $ 3,599 $ 1,231 $ 2,058 $ 5,074 $ 222 $ 420 $ 12,604 Loans: Collectively evaluated for impairment $ 557,282 $ 255,006 $ 142,994 $ 393,057 $ 28,403 $ 38,161 $ 1,414,903 Individually evaluated for impairment 2,507 483 112 487 5 — 3,594 Acquired with deteriorated credit quality 110 608 5 864 18 — 1,605 Balances, end of period $ 559,899 $ 256,097 $ 143,111 $ 394,408 $ 28,426 $ 38,161 $ 1,420,102 December 31, 2018 Allowance for Loan Losses: Collectively evaluated for impairment $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Individually evaluated for impairment — — — — — — — Loans acquired with deteriorated credit quality — — — — — — — Balances, end of period $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Loans: Collectively evaluated for impairment $ 549,055 $ 252,640 $ 174,662 $ 403,054 $ 25,584 $ 20,901 $ 1,425,896 Individually evaluated for impairment 1,278 183 — 817 — — 2,278 Acquired with deteriorated credit quality 113 739 8 729 31 — 1,620 Balances, end of period $ 550,446 $ 253,562 $ 174,670 $ 404,600 $ 25,615 $ 20,901 $ 1,429,794 The following table presents the allocation of the ALL for each respective loan category with the corresponding percentage of loans in each category to total loans, net of deferred fees as of December 31, 2019 and 2018 (dollars in thousands): December 31, 2019 December 31, 2018 Amount Percent of total loans Amount Percent of total loans Commercial real estate $ 3,599 0.25 % $ 3,309 0.23 % Consumer real estate 1,231 0.09 % 1,005 0.07 % Construction and land development 2,058 0.14 % 2,431 0.17 % Commercial and industrial 5,074 0.36 % 5,036 0.35 % Consumer 222 0.02 % 105 0.01 % Other 420 0.03 % 227 0.02 % Total allowance for loan and lease losses $ 12,604 0.89 % $ 12,113 0.85 % The following table presents information related to impaired loans as of and for the years ended December 31, 2019 and 2018 (in thousands): December 31, 2019 December 31, 2018 Recorded investment Unpaid principal balance Related allowance Recorded investment Unpaid principal balance Related allowance With no related allowance recorded: Commercial real estate $ 2,617 $ 2,621 $ — $ 1,391 $ 1,775 $ — Consumer real estate 1,091 1,327 — 922 1,204 — Construction and land development 117 132 — 8 18 — Commercial and industrial 1,351 2,173 — 1,546 6,350 — Consumer 23 41 — 31 56 — Other — — — — — — Subtotal 5,199 6,294 — 3,898 9,403 — With an allowance recorded: Commercial real estate — — — — — — Consumer real estate — — — — — — Construction and land development — — — — — — Commercial and industrial — — — — — — Consumer — — — — — — Other — — — — — — Subtotal — — — — — — Total $ 5,199 $ 6,294 $ — $ 3,898 $ 9,403 $ — The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. For purposes of this disclosure, the unpaid principal balance is not reduced for partial charge-offs. The following table presents information related to the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2019, 2018 and 2017 (in thousands): Year Ended Year Ended Year Ended December 31, 2019 December 31, 2018 December 31, 2017 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized With no related allowance recorded: Commercial real estate $ 2,574 $ 313 $ 1,198 $ 158 $ 1,258 $ — Consumer real estate 1,037 105 185 — — — Construction and land development 119 4 94 2 — — Commercial and industrial 824 440 5,557 121 — — Consumer 23 2 7 — — — Other — — — — — — Subtotal 4,577 864 7,041 281 1,258 — With an allowance recorded: Commercial real estate — — — — — — Consumer real estate — — — — — — Construction and land development — — — — — — Commercial and industrial — — — — 2,077 — Consumer — — — — — — Other — — — — — — Subtotal — — — — 2,077 — Total $ 4,577 $ 864 $ 7,041 $ 281 $ 3,335 $ — There was no interest income recognized on a cash basis for impaired loans for the years ended December 31, 2019, 2018 or 2017. Non-accrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Impaired loans include commercial loans that are individually evaluated for impairment and deemed impaired (i.e., individually classified impaired loans) as well as TDRs for all loan classifications. The following table presents the aging of the recorded investment in past-due loans as of December 31, 2019 and 2018 by class of loans (in thousands): 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Loans Not December 31, 2019 Past Due Past Due Past Due Past Due Past Due Total Commercial real estate $ 372 $ — $ — $ 372 $ 559,527 $ 559,899 Consumer real estate 3,642 474 643 4,759 251,338 256,097 Construction and land development 653 15 — 668 142,443 143,111 Commercial and industrial 1,277 8 440 1,725 392,683 394,408 Consumer 67 — 33 100 28,326 28,426 Other — — — — 38,161 38,161 Total $ 6,011 $ 497 $ 1,116 $ 7,624 $ 1,412,478 $ 1,420,102 December 31, 2018 Commercial real estate $ 300 $ 227 $ — $ 527 $ 549,919 $ 550,446 Consumer real estate 69 75 775 919 252,643 253,562 Construction and land development — — — — 174,670 174,670 Commercial and industrial 54 — — 54 404,546 404,600 Consumer 52 — 43 95 25,520 25,615 Other — — — — 20,901 20,901 Total $ 475 $ 302 $ 818 $ 1,595 $ 1,428,199 $ 1,429,794 The following table presents the recorded investment in non-accrual loans, past due loans over 89 days and accruing and troubled debt restructurings by class of loans as of December 31, 2019 and 2018 (in thousands): Past Due Over 89 Days Troubled Debt Non-Accrual and Accruing Restructurings December 31, 2019 Commercial real estate $ — $ — $ 2,446 Consumer real estate 894 12 — Construction and land development 117 — — Commercial and industrial 440 — 271 Consumer 13 26 — Other — — — Total $ 1,464 $ 38 $ 2,717 December 31, 2018 Commercial real estate $ — $ — $ 1,391 Consumer real estate 1,187 214 — Construction and land development 19 — — Commercial and industrial 817 — — Consumer 55 — — Other — — — Total $ 2,078 $ 214 $ 1,391 As of December 31, 2019 and 2018 all loans classified as nonperforming were deemed to be impaired. As of December 31, 2019 and 2018 the Company had recorded investments in TDR of $2.7 million and $1.4 million, respectively. The Company did not allocate a specific allowance for those loans at December 31, 2019 or 2018 and there were no commitments to lend additional amounts. Loans accounted for as TDR include modifications from original terms such as those due to bankruptcy proceedings, certain modifications of amortization periods or extended suspension of principal payments due to customer financial difficulties. 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 loan policy. Loans accounted for as TDR are individually evaluated for impairment. The following table presents loans by class modified as TDR that occurred during the year ended December 31, 2019 (in thousands). There were no TDR identified during the years ended December 31, 2018 or 2017. Year Ended December 31, 2019 Number of contracts Pre modification outstanding recorded investment Post modification outstanding recorded investment, net of related allowance Commercial real estate 1 $ 1,228 $ 1,228 Consumer real estate — — — Construction and land development — — — Commercial and industrial 1 271 271 Consumer — — — Other — — — Total 2 $ 1,499 $ 1,499 There were no TDR for which there was a payment default within the twelve months following the modification during the years ended December 31, 2019, 2018 or 2017. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. Acquired Loans On October 1, 2018, the Company acquired Athens (see Note 2 for more information). As a result of the acquisition, the Company recorded loans with a fair value of $344.8 million. Of those loans, $1.7 million were considered to be purchased credit impaired (“PCI”) loans, which are loans for which it is probable at the acquisition date that all contractually required payments will not be collected. The remaining loans are considered to be purchased non-impaired loans and their related fair value discount or premium is recognized as an adjustment to yield over the remaining life of each loan. The following table relates to acquired Athens PCI loans and summarizes the contractually required payments, which includes principal and interest, expected cash flows to be collected, and the fair value of acquired PCI loans at the acquisition date (in thousands): Athens Bancshares acquisition on October 1, 2018 Contractually required payments $ 3,151 Nonaccretable difference (1,049 ) Cash flows expected to be collected at acquisition 2,102 Accretable yield (436 ) Fair value of PCI loans at acquisition date $ 1,666 The following table relates to acquired Athens purchased non-impaired loans and provides the contractually required payments, fair value, and estimate of contractual cash flows not expected to be collected at the acquisition date (in thousands): Athens Bancshares acquisition on October 1, 2018 Contractually required payments $ 404,692 Fair value of acquired loans at acquisition date 343,167 Contractual cash flows not expected to be collected 1,807 The following table presents changes in the carrying value of PCI loans (in thousands): For the year ended December 31, 2019 Balance at beginning of period $ 1,620 Change due to payments received and accretion (15 ) Change due to loan charge-offs — Other — Balance at end of period $ 1,605 The following table presents changes in the accretable yield for PCI loans (in thousands): For the year ended December 31, 2019 Balance at beginning of period $ 440 Accretion (570 ) Reclassification from (to) nonaccretable difference 1,045 Other, net — Balance at end of period $ 915 PCI loans had no impact on the ALL for the years ended December 31, 2019, 2018 or 2017. Leases The Company has entered into various direct finance leases. The leases are reported as part of other loans. The lease terms vary from five years to six years. The components of the direct financing leases as of December 31, 2019 and 2018 were as follows (in thousands): December 31, 2019 December 31, 2018 Total minimum lease payments receivable $ 59 $ 379 Less: Unearned income (1 ) (19 ) Net leases $ 58 $ 360 The future minimum lease payments receivable under the direct financing leases as of December 31, 2019 were as follows (in thousands): Year ending December 31: 2020 $ 58 2021 — 2022 — 2023 — 2024 — $ 58 |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2019 | |
Transfers And Servicing [Abstract] | |
Loan Servicing | NOTE 5 – LOAN SERVICING Mortgage loans serviced for the Federal Home Loan Mortgage Corporation (“FHLMC”) are not reported as assets. The principal balance of these loans at December 31, 2019 and 2018 was $196.9 million and $170.1 million, respectively. These servicing rights were acquired in our acquisition of Athens. Custodial escrow balances maintained in connection with serviced loans was $324,000 and $462,000 at December 31, 2019 and 2018, respectively. Activity for loan servicing rights and the related valuation allowance are summarized as follows (in thousands): For the year ended December 31, 2019 Loan servicing rights: Balance at beginning of period $ 1,736 Additions 381 Disposals — Amortized to offset other noninterest income (362 ) Change in valuation allowance (211 ) Balance at end of period $ 1,544 Valuation allowance: Balance at beginning of period $ — Additions expensed — Reductions credited to other noninterest income — Direct write-downs (211 ) Balance at end of period $ (211 ) |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | NOTE 6 – PREMISES AND EQUIPMENT Premises and equipment at December 31, 2019 and 2018 are summarized as follows (in thousands): Range of useful lives December 31, 2019 December 31, 2018 Land Not applicable $ 4,303 $ 2,997 Buildings 39 years 13,331 9,965 Leasehold improvements 1 to 17 years 939 939 Furniture and equipment 1 to 7 years 4,633 3,730 Fixed assets in process Not applicable — 4,023 23,206 21,654 Less accumulated depreciation and amortization (4,022 ) (2,833 ) $ 19,184 $ 18,821 Premises and equipment depreciation and amortization expense for the years ended December 31, 2019, 2018 and 2017 totaled $1,219,000, $516,000 and $401,000, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | NOTE 7 – LEASES The Company leases certain premises and equipment under operating leases that expire at various dates, through 2032, and in most instances, include options to renew or extend at market rates and terms. At December 31, 2019, the Company had lease liabilities totaling $12.5 million and right-of-use assets totaling $11.7 million related to these leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At December 31, 2019, the weighted average remaining lease term for operating leases was 10.7 years and the weighted average discount rate used in the measurement of operating lease liabilities was 3.52%. Lease costs were as follows (in thousands): December 31, 2019 Operating lease cost $ 1,868 Short-term lease cost — Variable least cost — Total lease cost $ 1,868 Rent expense for the year ended December 31, 2018, prior to the adoption of ASU 2016-02 was $1,677,000. There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the year ended December 31, 2019 or 2018. A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows (in thousands): December 31, 2019 Lease payments due: 2020 $ 1,562 2021 1,590 2022 1,476 2023 1,425 2024 1,130 2025 and thereafter 7,710 Total undiscounted cash flows 14,893 Discount on cash flows (2,442 ) Total lease liability $ 12,451 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | NOTE 8 – GOODWILL AND INTANGIBLE ASSETS Goodwill The change in goodwill during the years ended December 31, 2019 and 2018 was as follows (in thousands): 2019 2018 Beginning of year $ 37,510 $ 6,219 Acquired goodwill — 31,291 Impairment — — End of year $ 37,510 $ 37,510 Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At October 31, 2019, the Company’s reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Acquired Intangible Assets Acquired intangible assets at December 31, 2019 and 2018 were as follows (in thousands): December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Core deposit intangibles $ 9,267 $ (2,384 ) $ 9,267 $ (729 ) Aggregate amortization expense was $1,655,000 for 2019, $465,000 for 2018 and $48,000 for 2017. Estimated amortization expense for each of the next five years is as follows (in thousands): Year ending December 31: 2020 $ 1,477 2021 1,299 2022 1,121 2023 943 2024 764 Thereafter 1,279 Total $ 6,883 |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2019 | |
Other Real Estate [Abstract] | |
Other Real Estate Owned | NOTE 9 – OTHER REAL ESTATE OWNED Other real estate owned activity was as follows (in thousands): 2019 2018 2017 Beginning balance $ 988 $ — $ — Additions due to acquisition of Athens Bancshares — 988 — Loans transferred to other real estate owned 180 — — Direct write-downs — — — Sales of other real estate owned (124 ) — — End of year $ 1,044 $ 988 $ — There was no valuation allowance allocated to properties held for the years ended December 31, 2019, 2018 and 2017. Expenses related to other real estate owned during the years ended December 31, 2019, 2018 and 2017, respectively include (in thousands): 2019 2018 2017 Net (gain) loss on sales $ (3 ) $ — $ — Provision for unrealized losses — — — Operating expenses, net of rental income — — — Total $ (3 ) $ — $ — |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | NOTE 10 – DEPOSITS Time deposits that exceed the FDIC deposit insurance limit of $250,000 at December 31, 2019 and 2018 were $53,481,000 and $98,086,000, respectively. Scheduled maturities of time deposits for the next five years and thereafter are as follows (in thousands): Maturity: 2020 $ 222,163 2021 53,077 2022 16,255 2023 8,369 2024 2,975 Thereafter 613 $ 303,452 At December 31, 2019 and 2018, the Company had $148,000 and $193,000, respectively of deposit accounts in overdraft status that were reclassified to loans in the accompanying balance sheets. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank Advances | NOTE 11 – FEDERAL HOME LOAN BANK ADVANCES The Company had outstanding borrowings totaling $10,000,000 and $125,000,000 at December 31, 2019 and 2018, respectively, via various advances. These advances are non-callable; interest payments are due monthly, with principal due at maturity. The following is a summary of the contractual maturities and average effective rates of outstanding advances (dollars in thousands): December 31, 2019 December 31, 2018 Year Amount Interest Rates Amount Interest Rates 2019 — — 125,000 2.48 % 2020 10,000 2.05 % — — 2021 — — — — 2022 — — — — 2023 — — — — 2024 — — — — Thereafter — — — — Total $ 10,000 2.05 % $ 125,000 2.48 % Advances from the FHLB are collateralized by investment securities with a market value of $4.1 million, FHLB stock and certain commercial and residential real estate mortgage loans totaling $683.1 million under a blanket mortgage collateral agreement. At December 31, 2019, the amount of available credit from the FHLB totaled $201.4 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE 12 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following were changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ended December 31, 2019 and 2018 (in thousands): Unrealized Gains Unrealized Gains and and Losses Losses on Losses on on Available Securities Cash Flow for Sale Transferred to Year Ended December 31, 2019 Hedges Securities Held to Maturity Total Beginning Balance $ (2,636 ) $ (680 ) $ — $ (3,316 ) Other comprehensive income (loss) before reclassification, net of tax 826 4,815 — 5,641 Amounts reclassified from accumulated other comprehensive income (loss), net of tax (869 ) (73 ) — (942 ) Net current period other comprehensive income (loss) (43 ) 4,742 — 4,699 Ending Balance $ (2,679 ) $ 4,062 $ — $ 1,383 Year Ended December 31, 2018 Beginning Balance $ (3,679 ) $ 1,162 $ (10 ) $ (2,527 ) Other comprehensive income (loss) before reclassification, net of tax 1,891 (1,844 ) 20 67 Amounts reclassified from accumulated other comprehensive income (loss), net of tax (848 ) 2 (10 ) (856 ) Net current period other comprehensive income (loss) 1,043 (1,842 ) 10 (789 ) Ending Balance $ (2,636 ) $ (680 ) $ — $ (3,316 ) The following were significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the years ended December 31, 2019, 2018 and 2017 (in thousands): Affected Line Item Details about Accumulated Other Year Ended Year Ended Year Ended in the Statement Where Comprehensive Income Components December 31, 2019 December 31, 2018 December 31, 2017 Net Income is Presented Unrealized losses on cash flow hedges $ (635 ) $ (441 ) $ (430 ) Interest expense - money market (243 ) (479 ) (429 ) Interest expense - Federal Home Loan Bank advances 9 72 89 Income tax benefit $ (869 ) $ (848 ) $ (770 ) Net of tax Unrealized gains and (losses) on available-for-sale securities $ (99 ) $ 3 $ (66 ) Net gain (loss) on sale of securities 26 (1 ) 25 Income tax (expense) benefit $ (73 ) $ 2 $ (41 ) Net of tax Unrealized losses on securities transferred to held-to-maturity $ — $ (14 ) $ (190 ) Interest income - securities — 4 73 Income tax benefit $ — $ (10 ) $ (117 ) Net of tax |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 13 – INCOME TAXES The components of income tax expense are summarized as follows (in thousands): 2019 2018 2017 Current: Federal $ 3,215 $ 15 $ 214 State 1,044 (23 ) 36 4,259 (8 ) 250 Deferred: Federal 2,039 872 4,218 State 546 303 167 2,585 1,175 4,385 Total $ 6,844 $ 1,167 $ 4,635 A reconciliation of actual income tax expense in the financial statements to the “expected” tax expense (computed by applying the statutory federal income tax rate of 21% to income before income taxes) for the years ended December 31, 2019, 2018 and 2017 is as follows (in thousands): 2019 2018 2017 Computed "expected" tax expense $ 6,146 $ 2,272 $ 2,086 State income taxes, net of effect of federal income taxes 1,256 221 134 Tax-exempt interest income (302 ) (298 ) (418 ) Earnings on bank owned life insurance contracts (173 ) (559 ) (197 ) Disallowed expenses 84 93 86 Excess tax benefits related to stock compensation (57 ) (857 ) (632 ) Write-down of deferred tax assets due to tax reform — — 3,562 Nondeductible merger expenses — 281 — Other (110 ) 14 14 Total $ 6,844 $ 1,167 $ 4,635 As a result of the Tax Cuts and Jobs Act of 2017 that was signed into law December 2017, the Company revalued its net deferred tax asset position. This revaluation resulted in a $3.6 million decrease in net deferred tax assets and a corresponding increase to income tax expense for the year ended December 31, 2017. Significant items that gave rise to deferred taxes at December 31, 2019 and 2018 were as follows (in thousands): December 31, 2019 December 31, 2018 Deferred tax assets: Allowance for loan losses $ 2,935 $ 2,795 Net operating loss carryforward 738 2,002 Organization and preopening costs 359 457 Stock-based compensation 200 835 Acquired loans 871 1,319 Unrealized loss on securities available-for-sale — 845 Accrued contributions 247 207 Other 189 685 Deferred tax assets 5,539 9,145 Deferred tax liabilities: Depreciation 804 645 Goodwill 154 81 Unrealized gain on securities available-for-sale 833 — Amortization of core deposit intangible 1,052 1,398 Other 568 411 Deferred tax liabilities 3,411 2,535 Net deferred tax asset $ 2,128 $ 6,610 At December 31, 2019, the Company had federal net operating loss carryforwards of approximately $3,011,000, which expire at various dates from 2030 to 2032. Deferred tax assets are fully recognized because the benefits are more likely than not to be realized based on management’s estimation of future taxable earnings. There were no significant unrecognized income tax benefits as of December 31, 2019 or 2018. As of December 31, 2019 and 2018 the Company had no accrued interest or penalties related to uncertain tax positions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 14 – COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company has outstanding commitments and contingent liabilities, such as commitments to extend credit and standby letters of credit, which are not included in the accompanying financial statements. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making such commitments as it does for instruments that are included in the balance sheet. The following table sets forth outstanding financial instruments whose contract amounts represent credit risk as of December 31, 2019 and 2018 (in thousands): Contract or notional amount December 31, 2019 December 31, 2018 Financial instruments whose contract amounts represent credit risk: Unused commitments to extend credit $ 672,933 $ 707,675 Standby letters of credit 9,634 12,273 Total $ 682,567 $ 719,948 The Company is party to litigation and claims arising in the normal course of business. Management believes that the liabilities, if any, arising from such litigation and claims as of December 31, 2019, will not have a material impact on the financial statements of the Company. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | NOTE 15 – CONCENTRATION OF CREDIT RISK Substantially all of the Company’s loans, commitments, and standby letters of credit have been granted to customers in the Company’s market areas. The concentrations of credit by type of loan are set forth in Note 4 to the financial statements. At December 31, 2019 and 2018, the Company’s cash and due from banks, federal funds sold and interest-bearing deposits in financial institutions aggregated $86,000,000 and $89,000,000, respectively, in excess of insured limits. |
Regulatory Matters And Restrict
Regulatory Matters And Restrictions On Dividends | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Regulatory Matters And Restrictions On Dividends | NOTE 16 – REGULATORY MATTERS AND RESTRICTIONS ON DIVIDENDS The Company and the Bank are subject to regulatory capital requirements administered by the Federal Reserve and the Bank is also subject to the regulatory capital requirements of the Tennessee Department of Financial Institutions. Failure to meet capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that could, in that event, have a material adverse effect on the institutions’ financial statements. The relevant regulations require the Company and the Bank to meet specific capital adequacy guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting principles. The capital classifications of the Company and the Bank are also subject to qualitative judgments by their regulators about components, risk weightings, and other factors. Those qualitative judgments could also affect the capital status of the Company and the Bank and the amount of dividends the Company and the Bank may distribute. The final rules implementing the Basel Committee on Companying Supervision’s capital guidelines for U.S. Banks (Basel III rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of December 31, 2019, the Company and the Bank met all regulatory capital adequacy requirements to which they are subject. The Federal Deposit Insurance Corporation Improvement Act of 1991 establishes a system of “prompt corrective action” to resolve the problems of undercapitalized insured depository institutions. Under this system, federal banking regulators have established five capital categories: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. Federal banking regulators are required to take various mandatory supervisory actions and are authorized to take other discretionary actions with respect to institutions in the three undercapitalized categories. The severity of the action depends upon the capital category in which the institution is placed. For example, institutions in all three undercapitalized categories are automatically restricted from paying distributions and management fees, whereas only an institution that is significantly undercapitalized or critically undercapitalized is restricted in its compensation paid to senior executive officers. Generally, subject to a narrow exception, the banking regulator must appoint a receiver or conservator for an institution that is critically undercapitalized. At December 31, 2019 and 2018, the Company and the Bank were well capitalized under the regulatory framework for prompt corrective action. There have been no conditions or events since that notification that management believes have changed the Company’s or the Bank’s category. The Company’s and the Bank’s capital amounts and ratios are presented in the following table (dollars in thousands): Actual Minimum capital requirement (1) Minimum to be well-capitalized (2) Amount Ratio Amount Ratio Amount Ratio At December 31, 2019: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 237,857 13.45 % $ 141,436 8.0 % N/A N/A CapStar Bank 224,443 12.70 141,388 8.0 176,735 10.0 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 225,074 12.73 106,077 6.0 N/A N/A CapStar Bank 211,660 11.98 106,041 6.0 141,388 8.0 Common equity Tier 1 capital to risk weighted assets: CapStar Financial Holdings, Inc. 225,074 12.73 79,558 4.5 N/A N/A CapStar Bank 195,160 11.04 79,531 4.5 114,878 6.5 Tier I capital to average assets: CapStar Financial Holdings, Inc. 225,074 11.37 79,201 4.0 N/A N/A CapStar Bank 211,660 10.70 79,150 4.0 98,938 5.0 At December 31, 2018: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 222,030 12.84 % $ 138,336 8.0 % N/A N/A CapStar Bank 201,972 11.68 138,294 8.0 172,868 10.0 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 209,738 12.13 103,752 6.0 N/A N/A CapStar Bank 189,680 10.97 103,721 6.0 138,294 8.0 Common equity Tier 1 capital to risk weighted assets: CapStar Financial Holdings, Inc. 200,738 11.61 77,814 4.5 N/A N/A CapStar Bank 173,180 10.02 77,791 4.5 112,364 6.5 Tier I capital to average assets: CapStar Financial Holdings, Inc. 209,738 11.06 75,867 4.0 N/A N/A CapStar Bank 189,680 10.01 75,828 4.0 94,785 5.0 (1) For the calendar year 2019, the Company was required to maintain a capital conservation buffer of Tier 1 common equity capital in excess of minimum risk-based capital ratios by at least 1.875% to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. (2) For the Company to be well-capitalized, the Bank must be well-capitalized and the Company must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve to meet and maintain a specific capital level for any capital measure. Under Tennessee banking law, the Bank is subject to restrictions on the payment of dividends. Banking regulations limit the amount of dividends that may be paid without prior approval of the Tennessee Department of Financial Institutions. Under these regulations, the amount of dividends that may be paid in any calendar year without prior approval of the Tennessee Department of Financial Institutions is limited to the current year’s net income, combined with the retained net income of the preceding two years, subject to the capital requirements described above. The Bank’s payment of dividends may also be affected or limited by other factors, such as the requirement to maintain adequate capital above regulatory guidelines. The federal banking agencies have indicated that paying dividends that deplete a depository institution’s capital base to an inadequate level would be an unsafe and unsound banking practice. Under the Federal Deposit Insurance Corporation Improvement Act of 1991, a depository institution may not pay any dividends if payment would cause it to become undercapitalized or if it already is undercapitalized. Moreover, the federal agencies have issued policy statements that provide that Company holding companies and insured banks should generally only pay dividends out of current operating earnings. Based on these regulations, the Bank was eligible to pay $35.8 million and $22.2 million of dividends as of December 31, 2019 and 2018, respectively. The Bank paid the Company $3.5 million of dividends during 2019 and this amount was paid out to shareholders by the Company during 2019. |
Nonvoting and Series A Preferre
Nonvoting and Series A Preferred Stock and Stock Warrants | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Nonvoting and Series A Preferred Stock and Stock Warrants | NOTE 17 – NONVOTING AND SERIES A PREFERRED STOCK AND STOCK WARRANTS Nonvoting Common Stock The Company has authorized 5,000,000 shares of its common stock as nonvoting common stock. The nonvoting common stock has the same rights and privileges as the common stock other than the nonvoting designation. Under certain conditions, as outlined in the Company’s charter, the nonvoting stock may be converted, on a one-to-one basis, to common stock. In conjunction with the Company’s initial public offering, 79,166 shares of nonvoting common stock were issued and simultaneously converted to common stock on a one-to-one basis as further described under “Warrants” below. During 2019, 132,561 shares of nonvoting common stock were converted to common stock. As a result, at December 31, 2019, there were no shares of nonvoting common stock outstanding. Preferred Stock In conjunction with its initial capital issuance in 2008, the Bank issued 1,609,756 shares of Series A Preferred Stock to certain shareholders. During 2016, coinciding with the Company’s initial public offering, 731,707 preferred shares were converted to common shares. During 2019, 878,048 preferred shares were converted to common shares. As a result, at December 31, 2019, there was no Series A Preferred Stock outstanding. Warrants In conjunction with the issuance of the 1,609,756 shares of the Series A Preferred Stock, the holders of such stock were issued 500,000 warrants to purchase shares of the Company’s nonvoting common stock at a purchase price of $10.25 per share. The warrants were exercisable at any time and expired ten years from the date of grant of July 14, 2008. As of December 31, 2019, all of these warrants have been exercised and none of these warrants remain outstanding. As part of the initial capital issuance in 2008, each organizer of the Company (“Organizers”) who became a director of the Company received a warrant to purchase, at the purchase price of $10.00 per share, 10,000 shares of the Company’s common stock. These warrants were issued in compliance with the FDIC’s policy on noncash compensation in recognition of the Organizers considerable contribution of time, expertise, and capital. The Company issued warrants to purchase 60,000 shares of common stock to these organizers. The warrants expired ten years from date of grant of July 14, 2008. As of December 31, 2019, all of these warrants have been exercised and no warrants remain outstanding. In addition, each subscriber for shares who is a Tennessee resident or any entity controlled by a Tennessee resident and invested a minimum of $500,000 in the offering, received a warrant to purchase additional shares of common stock equal to 5% of accepted subscriptions at the purchase price of $10.00 per share. The Company issued warrants to purchase 238,319 shares of common stock to these subscribers. The warrants expired ten years from date of grant of July 14, 2008. As of December 31, 2019, all of these warrants have been exercised and no warrants remain outstanding. |
Shareholders' Agreement
Shareholders' Agreement | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Agreement | NOTE 18 – SHAREHOLDERS’ AGREEMENT Pursuant to the terms of the SARSA, we received a request from certain shareholders party to the SARSA to register 3,652,094 shares of our common stock on a registration statement on Form S-3 (the “Registration Statement”) in December 2018. The Registration Statement was filed with the SEC on December 21, 2018. Subsequently, during 2019, the Corsair Funds exited their positions in the Company’s shares. |
Stock Options and Restricted Sh
Stock Options and Restricted Shares | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options and Restricted Shares | NOTE 19 – STOCK OPTIONS AND RESTRICTED SHARES During 2008, the board of directors of the Company approved the CapStar Bank 2008 Stock Incentive Plan. Following the formation of CapStar Financial Holdings, Inc. in 2016, and in connection with the Share Exchange, the outstanding awards of restricted stock and stock options under the CapStar Bank 2008 Stock Incentive Plan were exchanged for similar awards of restricted stock and stock options issued by CapStar Financial Holdings, Inc. under the Stock Incentive Plan (the “Plan”), which the board of directors adopted in 2016. The Plan provides for the grant of stock-based incentives, including stock options, restricted stock units, performance awards and restricted stock, to employees, directors and service providers that are subject to forfeiture until vesting conditions have been satisfied by the award recipient under the terms of the award. The Plan is intended to help align the interests of employees and our shareholders and reward our employees for improved Company performance. The Plan reserved 1,569,475 shares of stock for issuance of stock incentives. Stock incentives include both restricted stock and stock option grants. During 2018 the board of directors approved the addition of 400,000 shares of stock for issuance of stock incentives under the Plan. Total shares issuable under the plan were 362,757 at December 31, 2019. The Company has recognized stock-based compensation expense, within salaries and employee benefits for employees, and within other non-interest expense for directors, in the consolidated statements of income as follows (in thousands): For the year ended December 31, 2019 2018 2017 Stock-based compensation expense before income taxes $ 1,262 $ 2,079 $ 1,061 Less: deferred tax benefit (330 ) (543 ) (406 ) Reduction of net income $ 932 $ 1,536 $ 655 Restricted Shares Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the issue date. The recipients have the right to vote and receive dividends but cannot sell, transfer, assign, pledge, hypothecate, or otherwise encumber the restricted stock until the shares have vested. Restricted shares fully vest on the third anniversary of the grant date. A summary of the changes in the Company’s nonvested restricted shares for 2019 follows: Weighted Average Restricted Grant Date Nonvested Shares Shares Fair Value Nonvested at beginning of period 157,616 $ 17.00 Granted 31,683 15.86 Vested (83,062 ) 15.93 Forfeited (21,540 ) 17.72 Nonvested at end of period 84,697 $ 17.44 As of December 31, 2019, there was $1,564,000 of total unrecognized compensation cost related to nonvested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 1.6 years. The total fair value of shares vested during the years ended December 31, 2019, 2018 and 2017 was $1,352,000, $2,804,000 and $1,174,000, respectively. Stock Options Option awards are generally granted with an exercise price equal to the fair value of the Company’s common stock at the date of grant. Option awards generally have a three year vesting period and a ten year contractual term. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the table below. Expected volatility is based on calculations performed by management using industry data. The expected term of options granted was calculated using the “simplified” method for plain vanilla options as permitted under authoritative literature. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The fair value of options granted was determined using the following weighted average assumptions as of the grant date. The Company granted 50,000 options during 2019. There were no options granted during 2018. 2019 Dividend yield 1.35 % Expected term (in years) 6.50 Expected stock price volatility 29.55 % Risk-free interest rate 2.25 % A summary of the activity in stock options for 2019 follows: Weighted Weighted Average Average Remaining Exercise Contractual Shares Price Term (years) Outstanding at beginning of period 507,903 $ 8.66 Granted 50,000 14.84 Exercised (286,701 ) 7.33 Forfeited or expired — — Outstanding at end of period 271,202 $ 11.22 4.9 Fully vested and expected to vest 271,086 $ 11.22 4.9 Exercisable at end of period 214,952 $ 10.32 3.8 Information related to stock options during 2019, 2018 and 2017 follows: 2019 2018 2017 Intrinsic value of options exercised $ 2,478,086 $ 7,654,738 $ 2,010,536 Cash received from option exercises 1,930,737 6,897,845 2,013,840 Tax benefit realized from option exercises 103,847 846,725 774,056 Weighted average fair value of options granted 5.35 — — As of December 31, 2019, there was $216,000 of total unrecognized compensation cost related to nonvested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.4 years. |
Employment Contracts
Employment Contracts | 12 Months Ended |
Dec. 31, 2019 | |
Employment Contracts Disclosure [Abstract] | |
Employment Contracts | NOTE 20 – EMPLOYMENT CONTRACTS The Company has entered into employment contracts with certain senior executives with various expiration dates. Most of the contracts have an option for annual renewal by mutual agreement. The agreements specify that in certain terminating events the Company will be obligated to provide certain benefits and pay each of the senior executives severance based on their annual salaries. These terminating events include termination of employment without “Cause” (as defined in the agreements) or in certain other circumstances specified in the agreements. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 21 – EMPLOYEE BENEFIT PLANS The Company has a Retirement Savings 401(k) Plan in which employees may participate. The Company has elected a safe harbor 401(k) plan and as such is required to make an annual contribution of 3% of the employees’ salaries annually. An employee does not have to contribute to receive the employer contribution. In addition, the Company may make an additional discretionary contribution up to 6% of the employees’ salaries annually. For the years ended December 31, 2019, 2018 and 2017, the Company contributed $874,000, $639,000 and $550,000, respectively, to the 401(k) Plan. The Company also has a Health Reimbursement Plan in place to offset the cost of healthcare deductibles for employees. At the end of the year, up to one-half of the unused balance in the employee’s account will be available for the following year up to a maximum of the deductible for that employee. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | NOTE 22 – DERIVATIVE INSTRUMENTS The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest Rate Swaps Designated as Cash Flow Hedges There were no interest rate swaps designated as cash flow hedges as of December 31, 2019. A forward starting interest rate swap with a notional amount totaling $20 million as of December 31, 2018 was designated as a cash flow hedge of certain liabilities and was determined to be fully effective during all periods presented. As such, no amount of ineffectiveness was included in net income. Therefore, the aggregate fair value of the swaps was recorded in other liabilities with changes in fair value recorded in other comprehensive income. The Company terminated the interest rate swap during 2019, which resulted in a termination fee of $1.5 million. Cash flow swaps that have been terminated resulting in cash settlement equal to previously unrealized gains or losses are included in accumulated other comprehensive income and are being amortized to net income over the remaining contractual terms of the swaps. Summary information about the interest-rate swaps designated as cash flow hedges was as follows (dollars in thousands): December 31, 2019 December 31, 2018 Notional amounts $ — $ 20,000 Weighted average pay rates — 3.54 % Weighted average receive rates — 3 month LIBOR Weighted average maturity — 4.5 years Fair value $ — $ (836 ) Amount of unrealized loss recognized in accumulated other comprehensive income, net of tax $ — $ (617 ) Pursuant to its interest rate swap agreements, the Company pledged collateral to the counterparties in the form of investment securities with a carrying value of $2,038,000 at December 31, 2018. There was no collateral posted to or from the counterparties as of December 31, 2019. Other Interest Rate Swaps The Company also enters into swaps to facilitate customer transactions and meet their financing needs. Upon entering into these transactions the Company enters into offsetting positions with large U.S. financial institutions in order to minimize risk to the Company. A summary of the Company’s customer related interest rate swaps is as follows (in thousands): December 31, 2019 December 31, 2018 Notional Estimated Notional Estimated amount fair value amount fair value Interest rate swap agreements: Pay fixed/receive variable swaps $ 45,053 $ (926 ) $ 29,126 $ 24 Pay variable/receive fixed swaps 45,053 926 29,126 (24 ) Total $ 90,106 $ — $ 58,252 $ — Mortgage Banking Derivatives The Company enters into various derivative agreements with customers in the form of interest-rate lock commitments which are commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. The derivatives are valued using a model that utilizes market interest rates and other unobservable inputs. Changes in the fair value of these commitments due to fluctuations in interest rates that are to be originated to our loans held for sale portfolio are economically hedged through the use of forward sale commitments of mortgage-backed securities. The gains and losses arising from this derivative activity are reflected in current period earnings under mortgage banking income. Interest rate lock commitments are valued using a model with significant unobservable market parameters. Forward sale commitments are valued based on quoted prices for similar assets in an active market with inputs that are observable. The net gains (losses) relating to mortgage banking derivative instruments included in mortgage banking income were as follows (dollars in thousands): For the year ended December 31, 2019 Mortgage loan interest rate lock commitments $ 648 Mortgage-backed securities forward sales commitments (148 ) Total $ 500 There were no gains or losses relating to mortgage banking derivative instruments for the years ended December 31, 2018 and 2017. The amount and fair value of mortgage banking derivatives included in the consolidated balance sheets was as follows (dollars in thousands): December 31, 2019 December 31, 2018 Notional Estimated Notional Estimated amount fair value amount fair value Included in other assets: Mortgage loan interest rate lock commitments $ 44,694 $ 648 $ — $ — Included in other liabilities: Mortgage-backed securities forward sales commitments $ 38,500 $ 148 $ — $ — |
Related Party
Related Party | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party | NOTE 23 – RELATED PARTY The Company may enter into loan transactions with certain directors, executive officers, significant shareholders, and their affiliates. Such transactions were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions with persons not affiliated with the Company, and did not, in the opinion of management, involve more than normal credit risk or present other unfavorable features. None of these loans were impaired at December 31, 2019 or 2018. Activity within these loans during the years ended December 31, 2019 and 2018 was as follows (in thousands): Total commitment Total funded commitment Year ended December 31, 2019 Beginning of period $ 44,812 $ 15,445 New commitments/draw downs 9,336 2,515 Repayments (32,333 ) (7,287 ) End of period $ 21,815 $ 10,673 Year ended December 31, 2018 Beginning of period $ 49,409 $ 21,890 New commitments/draw downs 3,631 1,038 Repayments (8,228 ) (7,483 ) End of period $ 44,812 $ 15,445 Deposits from directors, executive officers, significant shareholders and their affiliates at December 31, 2019 and 2018 were $13.7 million and $11.4 million, respectively. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 24 – FAIR VALUE Fair value is 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. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant 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 that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Investment Securities Derivatives-Interest Rate Swaps Impaired Loans Other Real Estate Owned Loans Held For Sale Derivatives-Mortgage Loan Interest Rate Lock Commitments Derivatives-Mortgage-Backed Securities Forward Sales Commitments . Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair value measurements at December 31, 2019 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. government-sponsored agencies $ 10,331 $ — $ 10,331 $ — Obligations of states and political subdivisions 45,960 — 45,960 — Mortage-backed securities-residential 138,679 — 138,679 — Asset-backed securities 3,197 — 3,197 — Other debt securities 14,962 — 14,962 — Loans held for sale 168,222 — 168,222 — Derivative assets: Non-hedging derivatives: Interest rate swaps - customer related 926 — 926 — Mortgage loan interest rate lock commitments 648 — — 648 Liabilities: Derivative liabilities: Non-hedging derivatives: Interest rate swaps - customer related (926 ) — (926 ) — Mortgage-backed securities forward sales commitments (148 ) — (148 ) — Fair value measurements at December 31, 2018 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. government-sponsored agencies $ 10,706 $ — $ 10,706 $ — Obligations of states and political subdivisions 61,926 — 61,926 — Mortage-backed securities-residential 144,158 — 144,158 — Asset-backed securities 15,284 — 15,284 — Other debt securities 11,734 — 11,734 — Derivatives: Interest rate swaps - customer related 494 — 494 — Liabilities: Derivatives: Interest rate swaps - customer related (494 ) — (494 ) — Interest rate swaps - cash flow hedges (836 ) — (836 ) — The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended December 31, 2019 and 2018 (dollars in thousands): Mortgage Loan Interest Rate Lock Commitments 2019 2018 Balance of recurring Level 3 assets at January 1st $ — $ — Total gains or losses for the period: Included in mortgage banking income 648 — Balance of recurring Level 3 assets at December 31st $ 648 $ — The following table presents quantitative information about recurring Level 3 fair value measurements at December 31, 2019 (dollars in thousands). There were no Level 3 fair value measurements at December 31, 2018. Range Fair Valuation (Weighted- December 31, 2019 Value Technique(s) Unobservable Input(s) Average) Assets: Non-hedging derivatives: Mortgage loan interest rate lock commitments $ 648 Consensus pricing Origination pull-through rate 68% - 95% (83%) There were no assets measured at fair value on a nonrecurring basis at December 31, 2019 and 2018. Fair Value of Financial Instruments The carrying value and estimated fair values of the Company’s financial instruments at December 31, 2019 and 2018 were as follows (in thousands): December 31, 2019 December 31, 2018 Carrying Carrying Fair value amount Fair value amount Fair value level of input Financial assets: Cash and due from banks, interest-bearing deposits in financial institutions $ 101,094 $ 101,094 $ 94,681 $ 94,681 Level 1 Federal funds sold 175 175 10,762 10,762 Level 1 Securities available-for-sale 213,129 213,129 243,808 243,808 Level 2 Securities held-to-maturity 3,313 3,411 3,734 3,785 Level 2 Loans held for sale 168,222 169,072 57,618 58,596 Level 2 Restricted equity securities 13,689 N/A 12,038 N/A N/A Loans 1,420,102 1,414,757 1,429,794 1,442,082 Level 3 Accrued interest receivable 5,792 5,792 5,964 5,964 Level 2 Other assets 36,393 36,393 34,489 34,489 Level 2 / Level 3 Financial liabilities: Deposits 1,729,451 1,730,206 1,570,008 1,572,880 Level 3 Federal Home Loan Bank advances 10,000 10,014 125,000 126,548 Level 2 Other liabilities 1,394 1,394 2,753 2,753 Level 3 The methods and assumptions, not previously presented, used to estimate fair values are described as follows: (a) Cash and Due from Banks, Interest-Bearing Deposits in Financial Institutions For these short-term instruments, the carrying amount is a reasonable estimate of fair value. (b) Federal Funds Sold Federal funds sold clear on a daily basis. For this reason, the carrying amount is a reasonable estimate of fair value. (c) Restricted Equity Securities It is not practical to determine the fair value of restricted securities due to restrictions placed on their transferability. (d) Loans, net In accordance with the adoption of ASU 2016-01, the fair value of loans is measured using an exit price notion. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. (e) Accrued interest receivable The carrying amount of accrued interest approximates fair value. (f) Other Assets Included in other assets are bank owned life insurance and certain interest rate swap agreements. The fair values of interest rate swap agreements are based on independent pricing services that utilize pricing models with observable market inputs. For bank owned life insurance, the carrying amount is based on the cash surrender value and is a reasonable estimate of fair value. (g) Deposits The fair value of demand deposits, savings accounts and certain money market deposits is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounted cash flow models, using current market interest rates offered on certificates with similar remaining maturities. (h) Federal Home Loan Bank Advances The fair value of fixed rate Federal Home Loan Bank Advances is estimated using discounted cash flow models, using current market interest rates offered on certificates, advances and other borrowings with similar remaining maturities. (i) Other Liabilities Included in other liabilities are accrued interest payable and certain interest rate swap agreements. The fair values of interest rate swap agreements are based on independent pricing services that utilize pricing models with observable market inputs. The carrying amounts of accrued interest approximate fair value. (j) Off-Balance Sheet Instruments Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material. (k) Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on estimating on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, fixed assets are not considered financial instruments and their value has not been incorporated into the fair value estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Parent Company Only Financial I
Parent Company Only Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Financial Information | NOTE 25 – PARENT COMPANY ONLY FINANCIAL INFORMATION The following information presents the condensed balance sheet, statement of income, and cash flows of CapStar Financial Holdings, Inc. as of and for the year ended December 31, 2019 and 2018 (in thousands). Condensed Balance Sheets December 31, 2019 December 31, 2018 Assets Cash and cash equivalents $ 12,874 $ 19,918 Investment in consolidated subsidiary 259,632 234,263 Other assets 578 499 Total assets $ 273,084 $ 254,680 Liabilities and Shareholders’ Equity Other liabilities $ 38 301 Total shareholders’ equity 273,046 254,379 Total liabilities and shareholders’ equity $ 273,084 $ 254,680 Condensed Income Statements Year Ended Year Ended December 31, 2019 December 31, 2018 Income - dividends from subsidiary $ 3,530 $ 1,225 Expenses 1,083 1,054 Income before income taxes and equity in undistributed net income of subsidiary 2,447 171 Income tax benefit (262 ) (242 ) Income before equity in undistributed net income of subsidiary 2,709 413 Equity in undistributed net income of subsidiary 19,713 9,242 Net income $ 22,422 $ 9,655 Condensed Statements of Cash Flows Year Ended Year Ended December 31, 2019 December 31, 2018 Cash flows from operating activities: Net income $ 22,422 $ 9,655 Adjustments to reconcile net income to net cash provided by operating activities: Increase in other assets (78 ) (221 ) Increase (Decrease) in other liabilities (263 ) 181 Equity in undistributed net income of subsidiary (19,713 ) (9,242 ) Net cash provided by operating activities 2,368 373 Cash flows from investing activities: Cash received from acquisitions, net — 1,421 Net cash provided by investing activities — 1,421 Cash flows from financing activities: Repurchase of common stock (7,836 ) — Exercise of common stock options and warrants 1,931 5,260 Common and preferred stock dividends paid (3,507 ) (1,244 ) Net cash provided by (used in) financing activities (9,412 ) 4,016 Net increase (decrease) in cash and cash equivalents (7,044 ) 5,810 Cash and cash equivalents at beginning of period 19,918 14,108 Cash and cash equivalents at end of period $ 12,874 $ 19,918 |
Quarterly Financial Results (Un
Quarterly Financial Results (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Results (Unaudited) | NOTE 26 – QUARTERLY FINANCIAL RESULTS (UNAUDITED) The following is a summary of quarterly financial results (unaudited) for 2019, 2018 and 2017: First Quarter Second Quarter Third Quarter Fourth Quarter 2019 Interest income $ 22,967 $ 23,158 $ 23,216 $ 22,205 Interest expense 5,965 6,150 6,060 5,624 Net interest income 17,002 17,008 17,156 16,581 Provision for loan losses 886 — (125 ) — Net interest income after provision for loan losses 16,116 17,008 17,281 16,581 Noninterest income 4,735 7,032 6,788 5,719 Noninterest expense 14,725 16,470 15,531 15,266 Net income before income tax expense 6,126 7,570 8,538 7,034 Income tax expense 1,346 1,814 2,072 1,613 Net income $ 4,780 $ 5,756 $ 6,466 $ 5,421 Net income per share, basic $ 0.27 $ 0.33 $ 0.36 $ 0.30 Net income per share, diluted $ 0.25 $ 0.31 $ 0.35 $ 0.29 2018 Interest income $ 13,744 $ 15,354 $ 15,782 $ 22,900 Interest expense 2,898 3,767 4,239 5,184 Net interest income 10,846 11,587 11,543 17,716 Provision for loan losses 678 169 481 1,514 Net interest income after provision for loan losses 10,168 11,418 11,062 16,202 Noninterest income 3,088 2,765 3,218 6,387 Noninterest expense 9,580 10,005 10,070 23,832 Net income (loss) before income tax expense 3,676 4,178 4,210 (1,243 ) Income tax expense (benefit) 483 665 554 (535 ) Net income (loss) $ 3,193 $ 3,513 $ 3,656 $ (708 ) Net income (loss) per share, basic $ 0.27 $ 0.30 $ 0.30 $ (0.04 ) Net income (loss) per share, diluted $ 0.25 $ 0.27 $ 0.28 $ (0.04 ) 2017 Interest income $ 11,979 $ 12,891 $ 13,521 $ 13,124 Interest expense 2,047 2,320 2,678 2,606 Net interest income 9,932 10,571 10,843 10,518 Provision for loan losses 3,405 9,690 (195 ) (30 ) Net interest income after provision for loan losses 6,527 881 11,038 10,548 Noninterest income 2,133 2,666 3,372 2,736 Noninterest expense 8,376 8,217 8,475 8,699 Net income (loss) before income tax expense 284 (4,670 ) 5,935 4,585 Income tax expense (benefit) (47 ) (1,328 ) 1,516 4,494 Net income (loss) $ 331 $ (3,342 ) $ 4,419 $ 91 Net income (loss) per share, basic $ 0.03 $ (0.30 ) $ 0.39 $ 0.01 Net income (loss) per share, diluted $ 0.03 $ (0.26 ) $ 0.35 $ 0.01 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 27 – SUBSEQUENT EVENTS On January 23, 2020, we announced the signing of definitive merger agreements with FCB Corporation (“FCB”), its wholly owned subsidiary The First National Bank of Manchester (“FNBM”), and The Bank of Waynesboro (“BOW”) providing for FCB to merge with and into CapStar Financial Holdings, Inc. and for FNBM and BOW to merge with and into CapStar Bank. Under the terms of the merger agreements, FCB and BOW shareholders will receive 3,634,218 CapStar common shares and $26.4 million in cash, subject to certain adjustments, totaling $85.1 million based on the closing price of CapStar’s common stock on January 22, 2020. Pending regulatory and shareholder approvals and the satisfaction of certain other customary closing conditions, the acquisition is expected to be finalized in late second or early third quarter of 2020. As of December 31, 2019, FCB and BOW had total combined assets of $467 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements as of December 31, 2019 and 2018 and for each of the three years in the period ended December 31, 2019 include CapStar Financial Holdings, Inc. and it’s wholly owned subsidiary, CapStar Bank (the “Bank”, together referred to as the “Company”). Significant intercompany transactions and accounts are eliminated in consolidation. On February 5, 2016, CapStar Financial Holdings, Inc. acquired all of the Bank’s issued and outstanding shares of common stock, preferred stock, common stock options and warrants, and the Bank became the wholly owned subsidiary of CapStar Financial Holdings, Inc. (the “Share Exchange”). The consolidated financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and conform to general practices within the banking industry. |
Business Combinations | Business Combinations The Company accounts for business combinations using the acquisition method of accounting. The accounts of an acquired entity are included as of the date of acquisition, and any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. Under this method, all identifiable assets acquired, including purchased loans, and liabilities assumed are recorded at fair value. |
Nature of Operations | Nature of Operations Through the Bank, the Company provides full banking services to consumer and corporate customers located primarily in Tennessee. The Bank operates under a state bank charter and is a member of the Federal Reserve System. As a state member bank, the Bank is subject to regulations of the Tennessee Department of Financial Institutions, the Board of Governors of the Federal Reserve System (the “Federal Reserve”), and the Federal Deposit Insurance Corporation. |
Estimates | Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, determination of impairment of intangible assets, including goodwill, the valuation of our investment portfolio and deferred tax assets. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits in financial institutions and federal funds sold. Generally, federal funds sold are purchased and sold for one-day periods. The Company maintains deposits in excess of the federal insurance amounts with other financial institutions. Management makes deposits only with financial institutions it considers to be financially sound. |
Securities | Securities The Bank accounts for securities under the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320, Investments – Debt and Equity Securities Securities Held-to-Maturity - Debt securities are classified as held to maturity securities when the Bank has the positive intent and ability to hold the securities to maturity. Securities held to maturity are carried at amortized cost. Trading Securities - Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. No securities have been classified as trading securities. Securities Available-for-Sale - Debt securities not classified as either held to maturity securities or trading securities are classified as available for sale securities. Securities available for sale are carried at estimated fair value with unrealized gains and losses excluded from earnings and reported as a separate component of shareholders’ equity in other comprehensive income (loss). Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Realized gains and losses from the sales of securities are recorded on the trade date and determined using the specific-identification method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, the financial condition and near-term prospects of the issuer and any collateral underlying the relevant security. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. |
Loans Held For Sale and Fair Value Option | Loans Held For Sale and Fair Value Option The Company classifies loans as loans held for sale when originated with the intent to sell. As of April 1, 2019, the Company elected the fair value option for all residential mortgage loans originated with the intent to sell. This election allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. The Company has not elected the fair value option for other loans held for sale primarily because they are not economically hedged using derivative instruments. The fair value of residential mortgage loans originated with the intent to sell is based on traded market prices of similar assets. Other loans held for sale that are recorded at lower of cost or fair value may be carried at fair value on a nonrecurring basis when the fair value is less than cost. For further information, see Note 24 - Fair Value. The Company does not securitize mortgage loans. If the Company sells loans with servicing rights retained, the carrying value of the mortgage loan sold is reduced by the amount allocated to the servicing right. Fair values of residential mortgage loans held for sale are based on traded market prices of similar assets. The changes in fair value are recorded as a component of mortgage banking income and included gains of $0.6 million for the year ended December 31, 2019. There were no loans held for sale recorded at fair value as of December 31, 2018. The following table summarizes the difference between the fair value and the aggregate unpaid principal balance for residential real estate loans held for sale as of December 31, 2019 (dollars in thousands): Fair Value Aggregate Unpaid Principal Balance Difference December 31, 2019 Residential mortgage loans held for sale $ 30,740 $ 30,178 $ 562 |
Tri-Net Fees | Tri-Net Fees Tri-Net fees are derived from the origination, with the intent to sell, commercial real estate loans to third-party investors. All of these loan sales transfer servicing rights to the buyer. Realized gains and losses are recognized when legal title of the loan has transferred to the investor and sales proceeds have been received and are reflected in the accompanying statements of income in Tri-Net fees, net of related costs such as commission expenses. Loans that have not been sold at period end are classified as held for sale on the balance sheet and recorded at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. |
Loans | Loans The Company has six classes of loans for financial reporting purposes: commercial real estate, consumer real estate, construction and land development, commercial and industrial, consumer and other. The appropriate classification is determined based on the underlying collateral utilized to secure each loan. Commercial real estate loans are categorized as such based on investor exposures where repayment is largely dependent upon the operation, refinance, or sale of the underlying real estate. Commercial real estate also includes owner occupied commercial real estate. Consumer real estate consists primarily of 1-4 family residential properties including home equity lines of credit. Construction and land development loans include loans where the repayment is dependent on the successful completion and operation and/or sale of the related real estate project. Construction and land development loans include 1-4 family construction projects and commercial construction endeavors such as warehouses, apartments, office and retail space and land acquisition and development. Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes. Consumer loans include all loans issued to individuals not included in the consumer real estate class. Other loans include all loans not included in the classes of loans above and leases. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well secured and in process of collection. Consumer loans and any accrued interest is typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful and collection is highly questionable. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loans can also be returned to accrual status when they become well secured and in the process of collection. |
Acquired Loans | Acquired Loans Acquired loans are accounted for under the acquisition method of accounting. The acquired loans are recorded at their estimated fair values as of the acquisition date. Fair value of acquired loans is determined using a discounted cash flow model based on assumptions regarding the amount and timing of principal and interest payments, estimated prepayments, estimated default rates, estimated loss severity in the event of defaults, and current market rates. Estimated credit losses are included in the determination of fair value; therefore, an allowance for loan losses is not recorded on the acquisition date. An acquired loan is considered purchased credit impaired when there is evidence of credit deterioration since origination and it is probable at the date of acquisition that the Bank will be unable to collect all contractually required payments. Purchased credit impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as loan type and risk rating. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid (fair value) is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Acquired non-impaired loans are recorded at their initial fair value and adjusted for subsequent advances, pay downs, amortization or accretion of any premium or discount on purchase, charge-offs and additional provisioning that may be required. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses (“ALL”) is maintained at a level that management believes to be adequate to absorb expected loan losses inherent in the loan portfolio as of the balance sheet date. The allowance for loan losses is a valuation allowance for estimated credit losses inherent in the loan and lease portfolio, increased by the provision for loan losses and decreased by charge-offs, net of recoveries. Quarterly, the Company estimates the allowance required using peer group loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. The Company’s historical loss experience is based on the actual loss history by class of loan for comparable peer institutions due to the Company’s limited loss history. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries are credited to the allowance for loan losses. The Company also considers the results of the external independent loan review when assessing the adequacy of the allowance and incorporates relevant loan review results in the loan impairment and overall adequacy of allowance determinations. Furthermore, regulatory agencies periodically review the Company’s allowance for loan losses and may require the Company to record adjustments to the allowance based on their judgment of information available to them at the time of their examinations. Additional considerations are included in the determination of the adequacy of the allowance based on the continuous review conducted by relationship managers and credit department personnel. The Company’s loan policy requires that each customer relationship wherein total exposure exceeds $1.5 million be subject to a formal credit review at least annually. Should these reviews identify potential collection concerns, appropriate adjustments to the allowance may be made. The allowance consists of specific and general components as discussed below. While the allowance consists of separate components, these terms are primarily used to describe a process. Both portions of the allowance are available to provide for inherent losses in the entire portfolio. Specific Component The specific component relates to loans that are individually determined to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans meeting any of the following criteria are individually evaluated for impairment: risk rated substandard (as defined in Note 4), on non-accrual status or past due greater than 90 days. If a loan is impaired, a portion of the allowance is allocated based on the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral less costs to sell if repayment is expected solely from the collateral. Changes to the valuation allowance are recorded as a component of the provision for loan losses. TDRs are individually evaluated for impairment and included in the separately identified impairment disclosures. TDRs are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral less costs to sell. General Component The general component of the allowance for loan losses covers loans that are collectively evaluated for impairment. Large groups of homogeneous loans are collectively evaluated for impairment, and accordingly, they are not included in the separately identified impairment disclosures. The general allowance component also includes loans that are individually identified for impairment evaluation but are not considered impaired. The general component is based on historical loss experience adjusted for current factors. Due to the Company’s limited loss history, the historical loss experience is based on the actual loss history by class of loan for comparable peer institutions. The Company utilized a 33 quarter look-back period as of December 31, 2017. Subsequently, the Company increased its look-back period for a total of 37 quarters and 41 quarters as of December 31, 2018 and 2019, respectively. In the current economic environment, management believes the extension of the look-back period was necessary in order to capture sufficient loss observations to develop a reliable loss estimate of credit losses. This extension of the historical look-back period to capture the historical loss experience of peer banks was applied to all classes and segments of our loan portfolio. The actual loss experience is supplemented with other environmental factors that capture changes in trends, conditions, and other relevant factors that may cause estimated credit losses as of the evaluation date to differ from historical loss experience. The allocation for environmental factors is by nature subjective. These amounts represent estimated probable inherent credit losses, which exist but have not been captured in the historical loss experience. The environmental factors include consideration of the following: changes in lending policies and procedures, economic conditions, nature and volume of the portfolio, experience of lending management, volume and severity of past due loans, quality of the loan review system, value of underlying collateral for collateral dependent loans, concentrations, and other external factors. |
Servicing Rights | Servicing Rights When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in other noninterest income. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with other noninterest income on the income statement and the associated asset is included in other assets on the Consolidated Balance Sheet. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported on the income statement within other noninterest income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Net servicing fees totaled $340,000 and $102,000 for the years ended December 31, 2019 and 2018, respectively. There were no servicing fees for the year ended December 31, 2017. Late fees and ancillary fees related to loan servicing are not material. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized by the straight-line method based on the shorter of the asset lives or the expected lease terms. Useful lives for premises and equipment range from one to thirty-nine years. These assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. |
Leases | Leases In February 2016, the FASB issued a new accounting standard update (ASU 2016-02, Leases (Topic 842)), which requires for all operating leases the recognition of a right-of-use ("ROU") asset and a corresponding lease liability, in the Consolidated Balance Sheet. For short term leases (term of 12 months or less), a lessee is permitted to make an accounting election not to recognize lease assets and lease liabilities. The lease cost will be allocated over the lease term on a straight-line basis. There were further amendments, including practical expedients, with the issuance of ASU 2018-01, “Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842” in January 2018. In July 2018, the FASB issued ASU No. 2018-11, "Leases (Topic 842): Targeted Improvements", which provides for the option to apply the new leasing standard to all open leases as of the adoption date, on a prospective basis. On January 1, 2019, the Company adopted the new accounting standard ASU 2016-02, Leases (Topic 842) and all the related amendments ("new lease standard", "ASC 842" or "ASU 2016-02") utilizing the practical expedient to apply the new lease standard as of January 1, 2019 on a prospective basis. The Company also elected the "package of expedients" and elected as an accounting policy to exclude recording ROU assets and lease liabilities for leases that meet the definition of short-term leases. In addition to excluding short-term leases, the Company has implemented an accounting policy in which non-lease components are not separated from lease components in the measurement of ROU assets and lease liabilities for all lease contracts. The Company recognized $12.8 million in ROU assets and $13.4 million in lease liabilities as a result of applying the new lease standard as an adjustment to the opening consolidated balance sheet on January 1, 2019. The ROU assets and lease liabilities are included in other assets and other liabilities, respectively on the Consolidated Balance Sheet. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. See Note 7—Leases for additional disclosures related to leases. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Bank has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Bank owned life insurance is included in other assets on the Consolidated Balance Sheet. |
Securities Sold under Agreements to Repurchase | Securities Sold under Agreements to Repurchase The Bank enters into sales of securities under agreements to repurchase at a specified future date. Such repurchase agreements are considered financing arrangements and, accordingly, the obligation to repurchase assets sold is reflected as a liability in the balance sheets of the Bank. Repurchase agreements are collateralized by debt securities which are owned and under the control of the Bank and are included in other liabilities on the Consolidated Balance Sheet. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Company has selected October 31st as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the balance sheet. Other intangible assets consist of core deposit intangible assets arising from whole bank acquisitions and are amortized on an accelerated method over their estimated useful lives, which range from six to ten years. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned (“OREO”) includes assets that have been acquired in satisfaction of debt through foreclosure and are recorded at estimated fair value less the estimated cost of disposition. Fair value is based on independent appraisals and other relevant factors. Valuation adjustments required at foreclosure are charged to the allowance for loan losses. Subsequent to foreclosure, additional losses resulting from the periodic revaluation of the property are charged to other real estate expense. Costs of operating and maintaining the properties and any gains or losses recognized on disposition are also included in other real estate expense. Improvements made to properties are capitalized if the expenditures are expected to be recovered upon the sale of the properties. |
Restricted Equity Securities | Restricted Equity Securities The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest additional amounts. FHLB stock is carried at cost, classified as a restricted equity security, and periodically evaluated for impairment based on an assessment of the ultimate recovery of par value. Both cash and stock dividends are reported as interest income. The Bank is also a member of the Federal Reserve System, and as such, holds stock of the Federal Reserve Bank of Atlanta (“Federal Reserve Bank”). Federal Reserve Bank stock is carried at cost, classified as a restricted equity security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as interest income. |
Income Taxes | Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company’s tax returns remain open to audit under the statute of limitations by the IRS and various states for the years ended December 31, 2016 through 2019. It is the Company’s policy to recognize interest and/or penalties related to income tax matters in income tax expense. |
Share-Based Compensation | Stock-Based Compensation Stock-based compensation expense is recognized based on the fair value of the portion of stock-based payment awards that are ultimately expected to vest, reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation expense is recognized on a straight-line basis over the requisite service period for the entire award. For awards with performance vesting criteria, anticipated performance is projected to determine the number of awards expected to vest, and the corresponding aggregate expense is adjusted to reflect the elapsed portion of the performance period. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Advertising expense was approximately $370,000, $383,000 and $310,000 for the years ended December 31, 2019, 2018 and 2017, respectively and is included in other operating expenses on the Consolidated Statements of Income. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments In the ordinary course of business, the Bank has entered into off-balance-sheet financial instruments consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received. |
Derivative Instruments | Derivative Instruments Derivative instruments are recorded on the balance sheet at their respective fair values. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship. If the derivative instrument is not designated as a hedge, the gain or loss on the derivative instrument is recognized in earnings in the period of change. The Bank enters into interest rate swaps (“swaps”) to facilitate customer transactions and meet their financing needs. Upon entering into these arrangements to meet customer needs, the Bank enters into offsetting positions with large U.S. financial institutions in order to minimize risk to the Bank. These swaps are derivatives, but are not designated as hedging instruments. The Bank may also utilize forward starting cash flow hedges to manage its future interest rate exposure. These derivative contracts are designated as hedges and, as such, changes in the fair value of these derivative instruments are recorded in other comprehensive income (loss). The Bank prepares written hedge documentation for all derivatives which are designated as hedges. The written hedge documentation includes identification of, among other items, the risk management objective, hedging instrument, hedged item and methodologies for assessing and measuring hedge effectiveness and ineffectiveness, along with support for management’s assertion that the hedge will be highly effective. The effective portion of the changes in the fair value of a derivative that is highly effective and that has been designated and qualifies as a cash flow hedge are initially recorded in accumulated other comprehensive income (loss) and subsequently reclassified into earnings in the same period during which the hedged item affects earnings. The ineffective portion, if any, would be recognized in current period earnings. The Bank discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative is settled or terminates, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income (loss) are amortized into earnings over the same periods which the hedged transactions will affect earnings. Cash flows resulting from the derivative financial instruments that are accounted for as hedges are classified in the cash flow statement in the same category as the cash flows of the items being hedged. Commitments to fund mortgage loans “interest rate locks” to be sold into the secondary market and forward commitments for the sale of mortgage-backed securities are accounted for as free standing derivatives. The fair value of the interest rate lock is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitment before the loan is funded. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest rate on the loan is locked. The Company enters into forward commitments for the sale of mortgage-backed securities when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in mortgage banking income. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income includes unrealized gains and losses on securities available for sale, unrealized gains and losses on securities transferred to held to maturity and unrealized gains and losses on cash flow hedges which are also recognized as separate components of equity. The Bank’s policy is to release the income tax effects of items in accumulated other comprehensive income (loss) when the item is realized. |
Fair Value Measurements | Fair Value Measurements Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Restriction on Cash Balances | Restriction on Cash Balances Regulation D of the Federal Reserve Act requires that banks maintain reserve balances with their applicable Federal Reserve Bank based principally on the type and amount of their deposits. The Bank was required to have a reserve balance of $73,444,000, $63,890,000, and $43,940,000 at December 31, 2019, 2018 and 2017, respectively. The reserve balance that the Bank must maintain at the Federal Reserve Bank of Atlanta is included in interest-bearing deposits in financial institutions as of December 31, 2019, 2018 and 2017. |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events for recognition and disclosure through March __, 2020, which is the date the financial statements were available to be issued. |
Income Per Common Share | Income Per Common Share Basic net income per share available to common stockholders (“EPS”) is computed by dividing net income available to common stockholders by the weighted average shares of common stock outstanding for the period. Diluted EPS reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted. The difference between basic and diluted weighted average shares outstanding is attributable to convertible preferred stock, common stock options and warrants. The dilutive effect of outstanding convertible preferred stock, common stock options and warrants is reflected in diluted EPS by application of the treasury stock method. No antidilutive stock options were excluded from calculation for the years ended December 31, 2019, 2018 or December 31, 2017. The following is a summary of the basic and diluted earnings per share calculation for each of the following years (in thousands except share data): Year Ended December 31, 2019 2018 2017 Basic net income per share calculation: Numerator – Net income $ 22,422 $ 9,655 $ 1,501 Denominator – Average common shares outstanding 17,886,164 13,277,614 11,280,580 Basic net income per share $ 1.25 $ 0.73 $ 0.13 Diluted net income per share calculation: Numerator – Net income $ 22,422 $ 9,655 $ 1,501 Denominator – Average common shares outstanding 17,886,164 13,277,614 11,280,580 Dilutive shares contingently issuable 727,060 1,202,733 1,522,931 Average diluted common shares outstanding 18,613,224 14,480,347 12,803,511 Diluted net income per share $ 1.20 $ 0.67 $ 0.12 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements ASU 2014-09, Revenue from Contracts with Customers In May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance was effective for the Company for reporting periods beginning after December 15, 2017. The Company applied the guidance using a modified retrospective approach. The Company's revenue is comprised of net interest income and noninterest income. The scope of the guidance explicitly excludes net interest income as well as many other revenues for financial assets and liabilities including loans, leases, securities, and derivatives. Accordingly, the majority of our revenues will not be affected. The Company performed an assessment of our revenue contracts related to revenue streams that are within the scope of the standard. Our accounting policies did not change materially since the principles of revenue recognition from the ASU were largely consistent with existing guidance and current practices applied by our businesses. We did not identify material changes to the timing or amount of revenue recognition. The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Our accounting policies did not change materially since the principles of revenue recognition from the Accounting Standards Update were largely consistent with existing guidance and current practices applied by our business. A description of the Company’s revenue streams accounted for under Topic 606 follows: Treasury management and other deposit service charges: The Company earns fees from its deposit customers for transaction based, account maintenance, and overdraft services. Transaction based fees are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees are earned over the course of a month, representing the period over which the Company satisfies its performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Interchange income: Included in other noninterest income are interchange fees, which the Company earns from debit cardholder transactions conducted through various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing series provided to the cardholder. Gains/Losses on Sales of OREO: The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligation under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. ASU 2016-02, Leases In February 2016, the FASB amended the Leases topic of the Accounting Standards Codification to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments were effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted the guidance using the modified retrospective method and practical expedients for transition. The practical expedients allow the Company to largely account for our existing leases consistent with current guidance except for the incremental balance sheet recognition for lessees. The Company evaluated the new guidance and its impact on the Company’s financial statements. Based on leases outstanding at December 31, 2018, the impact of adoption on January 1, 2019 was recording a lease liability of approximately $13.4 million, a right-of-use asset of approximately $12.8 million, and elimination of deferred rent of approximately $0.6 million. ASU 2016-13, Financial Instruments – Credit Losses In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments were originally supposed to be effective for the Company for reporting periods beginning after December 15, 2019 with early adoption permitted for all organizations for periods beginning after December 15, 2018. However, in November 2019, the FASB issued ASU 2019-10, Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates ASU 2017-04, Simplifying the Test of Goodwill Impairment In January 2017, the FASB amended the Goodwill and Other Topic of the Accounting Standards Codification to simplify the accounting for goodwill impairment for public business entities and other entities that have goodwill reported in their financial statements and have not elected the private company alternative for the subsequent measurement of goodwill. The amendment removes Step 2 of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The effective date and transition requirements for the technical corrections will be effective for the Company for reporting periods beginning after December 15, 2019. The Company does not expect these amendments to have a material effect on its financial statements. ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB amended the requirements of the Derivatives and Hedging Topic of the Accounting Standards Codification to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The amendments were effective for the Company for interim and annual periods beginning after December 15, 2018. Early adoption was permitted. The Company adopted this standard December 1, 2017. There was no material effect on the financial statements. ASU 2018-02, Income Statement: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB Issued (2018-02), Income Statement (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ASU 2018-07, Compensation – Stock Compensation In June 2018, the FASB amended the Compensation—Stock Compensation Topic of the Accounting Standards Codification. The amendments expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The guidance was effective for the Company for reporting periods beginning after December 15, 2018. There was no material effect on the financial statements. ASU 2019-04 ― Applicable to entities that hold financial instruments: In April 2019, the FASB issued guidance that clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement of financial instruments. The amendments related to credit losses will be effective for the Company for reporting periods beginning after December 15, 2019. The amendments related to hedging were effective for the Company for interim and annual periods beginning after December 15, 2018. The amendments related to recognition and measurement of financial instruments will be effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not expect these amendments to have a material effect on its financial statements. ASU 2019-05 ― Applicable to entities that hold financial instruments: In May 2019, the FASB issued guidance to provide entities with an option to irrevocably elect the fair value option, applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The amendments will be effective for the Company upon adoption of ASU 2016-13 in fiscal year 2023. The Company does not expect these amendments to have a material effect on its financial statements. ASU 2019-12 ― Applicable to entities within the scope of Topic 740, Income Taxes: In December 2019, the FASB issued guidance to simplify accounting for income taxes by removing specific technical exceptions that often produce information investors have a hard time understanding. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Difference Between the Fair Value and Aggregate Unpaid Principal Balance | The following table summarizes the difference between the fair value and the aggregate unpaid principal balance for residential real estate loans held for sale as of December 31, 2019 (dollars in thousands): Fair Value Aggregate Unpaid Principal Balance Difference December 31, 2019 Residential mortgage loans held for sale $ 30,740 $ 30,178 $ 562 |
Summary of the Basic and Diluted Earnings Per Share | The following is a summary of the basic and diluted earnings per share calculation for each of the following years (in thousands except share data): Year Ended December 31, 2019 2018 2017 Basic net income per share calculation: Numerator – Net income $ 22,422 $ 9,655 $ 1,501 Denominator – Average common shares outstanding 17,886,164 13,277,614 11,280,580 Basic net income per share $ 1.25 $ 0.73 $ 0.13 Diluted net income per share calculation: Numerator – Net income $ 22,422 $ 9,655 $ 1,501 Denominator – Average common shares outstanding 17,886,164 13,277,614 11,280,580 Dilutive shares contingently issuable 727,060 1,202,733 1,522,931 Average diluted common shares outstanding 18,613,224 14,480,347 12,803,511 Diluted net income per share $ 1.20 $ 0.67 $ 0.12 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for Athens and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (in thousands): As recorded by Athens Bancshares Initial fair value adjustments Measurement period adjustments As recorded by CapStar Financial Holdings Assets: Cash and cash equivalents $ 12,053 $ — $ — $ 12,053 Securities 67,342 84 (a) — 67,426 Loans, gross 349,597 (4,764 ) (b) — 344,833 Allowance for loan losses (4,039 ) 4,039 (c) — — Premises and equipment, net 7,637 1,571 (d) — 9,208 Core deposit intangible 2,758 6,222 (e) — 8,980 Other 29,566 944 (f) — 30,510 Total $ 464,914 $ 8,096 $ — $ 473,010 Liabilities: Deposits $ 404,027 $ 493 (g) $ — $ 404,520 Other 5,363 1,500 (h) — 6,863 Total $ 409,390 $ 1,993 $ — $ 411,383 Net identifiable assets acquired $ 61,627 Total cost of acquisition: Value of stock issued $ 86,538 Value of rolled stock options 6,380 Total cost of acquisition $ 92,918 $ 92,918 Goodwill recorded related to acquisition $ 31,291 (a) The amount represents the fair value adjustment of securities that were subsequently sold. (b) The amount represents the adjustment of the net book value of Athens’ loans to their estimated fair value based on interest rates and expected cash flows at the date of acquisition. (c) The amount represents the removal of Athens’ existing allowance for loan losses. (d) The amount represents the adjustment of the net book value of Athens’ premises and equipment to their estimated fair value. (e) The amount represents the net adjustment of removing Athens’ existing core deposit intangible from prior acquisitions and recording the fair value of the core deposit intangible representing the intangible value of the deposit base acquired and the fair value of the customer relationship. (f) The amount represents the net adjustment of the fair value of mortgage servicing rights acquired and the deferred tax asset recognized on the fair value adjustments on Athens acquired assets and assumed liabilities. (g) The amount represents the adjustment necessary because the weighted average interest rate of Athens’ time deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. (h) The amount represents the liability assumed in connection with the merger agreement whereby the Company will make a $1,500,000 charitable contribution to the Athens Foundation over a three year period. |
Schedule of Unaudited Pro Forma Financial Information | The following unaudited pro forma financial information presents the combined results of the Company and Athens as if the acquisition had occurred as of January 1, 2017, after giving effect to certain adjustments, including amortization of the core deposit intangible, and related income tax effects. The pro forma financial information does not necessarily reflect the results of operations that would have occurred had the Company and Athens constituted a single entity during such periods (in thousands, except share data): Pro forma combined twelve months ended December 31, 2018 Pro forma combined twelve months ended December 31, 2017 Net interest income $ 66,935 $ 59,148 Noninterest income 20,692 17,540 Total revenue 87,627 76,688 Net income 21,167 5,851 Per share information: Basic net income per share of common stock $ 1.24 $ 0.36 Diluted net income per share of common stock $ 1.14 $ 0.32 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Company's Classification of Securities | The Company’s classification of securities at December 31, 2019 and 2018 was as follows (in thousands): December 31, 2019 December 31, 2018 Amortized Cost Gross unrealized gains Gross unrealized (losses) Estimated fair value Amortized Cost Gross unrealized gains Gross unrealized (losses) Estimated fair value Securities available-for-sale: U. S. government agency securities $ 10,421 $ 4 $ (94 ) $ 10,331 $ 11,053 $ — $ (347 ) $ 10,706 State and municipal securities 44,053 1,927 (20 ) 45,960 62,142 765 (981 ) 61,926 Mortgage-backed securities 137,305 1,834 (460 ) 138,679 146,547 776 (3,165 ) 144,158 Asset-backed securities 3,325 — (128 ) 3,197 15,437 4 (157 ) 15,284 Other debt securities 14,839 141 (18 ) 14,962 11,863 71 (200 ) 11,734 Total $ 209,943 $ 3,906 $ (720 ) $ 213,129 $ 247,042 $ 1,616 $ (4,850 ) $ 243,808 Securities held-to-maturity: State and municipal securities $ 3,313 $ 98 $ — $ 3,411 $ 3,734 $ 54 $ (3 ) $ 3,785 Total $ 3,313 $ 98 $ — $ 3,411 $ 3,734 $ 54 $ (3 ) $ 3,785 |
Summary of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt and equity securities at December 31, 2019, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-sale Held-to-maturity Amortized cost Estimated fair value Amortized cost Estimated fair value Due in less than one year $ 9,805 $ 9,909 $ 881 $ 884 Due one to five years 28,593 29,230 2,432 2,527 Due five to ten years 29,545 30,758 — — Due beyond ten years 1,370 1,356 — — Mortgage-backed securities 137,305 138,679 — — Asset-backed securities 3,325 3,197 — — $ 209,943 $ 213,129 $ 3,313 $ 3,411 |
Summary of Sale of Debt and Equity Securities | Results from sales of debt and equity securities were as follows (in thousands): Year ended December 31 2019 2018 2017 Proceeds $ 68,068 $ 38,322 $ 46,762 Gross gains 49 116 124 Gross losses (148 ) (113 ) (190 ) |
Summary of Securities with Unrealized Losses Aggregated by Major Security Type and Length of Time Continuous Unrealized Loss Position | The following tables show the Company’s securities with unrealized losses, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands): Less than 12 months 12 months or more Total December 31, 2019 Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses Estimated fair value Gross unrealized losses U. S. government agency securities $ 6,694 $ (51 ) $ 1,637 $ (43 ) $ 8,331 $ (94 ) State and municipal securities 2,356 (12 ) 814 (8 ) 3,170 (20 ) Mortgage-backed securities 30,570 (136 ) 21,364 (324 ) 51,934 (460 ) Asset-backed securities — — 3,197 (128 ) 3,197 (128 ) Other debt securities 3,012 (16 ) 1,502 (2 ) 4,514 (18 ) Total temporarily impaired securities $ 42,632 $ (215 ) $ 28,514 $ (505 ) $ 71,146 $ (720 ) December 31, 2018 U. S. government agency securities $ — $ — $ 10,706 $ (347 ) $ 10,706 $ (347 ) State and municipal securities 13,455 (212 ) 17,376 (772 ) 30,831 (984 ) Mortgage-backed securities 7,075 (17 ) 87,232 (3,148 ) 94,307 (3,165 ) Asset-backed securities 8,262 (145 ) 2,439 (12 ) 10,701 (157 ) Other debt securities 5,362 (200 ) — — 5,362 (200 ) Total temporarily impaired securities $ 34,154 $ (574 ) $ 117,753 $ (4,279 ) $ 151,907 $ (4,853 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Loans | Loans at December 31, 2019 and 2018 were as follows (in thousands): December 31, 2019 December 31, 2018 Commercial real estate $ 559,899 $ 550,446 Consumer real estate 256,097 253,562 Construction and land development 143,111 174,670 Commercial and industrial 394,408 404,600 Consumer 28,426 25,615 Other 38,161 20,901 Total 1,420,102 1,429,794 Allowance for loan losses (12,604 ) (12,113 ) Total loans, net $ 1,407,498 $ 1,417,681 |
Summary of Risk Category of Loans by Applicable Class of Loans | The following table provides the risk category of loans by applicable class of loans as of December 31, 2019 and 2018 (in thousands): Non-impaired Loans December 31, 2019 Pass Special Mention Substandard Total Non-impaired Total Loans Total Commercial real estate $ 551,929 $ 915 $ 4,438 $ 557,282 $ 2,617 $ 559,899 Consumer real estate 252,952 503 1,551 255,006 1,091 256,097 Construction and land development 142,978 — 16 142,994 117 143,111 Commercial and industrial 370,475 14,341 8,241 393,057 1,351 394,408 Consumer 28,382 6 15 28,403 23 28,426 Other 38,161 — — 38,161 — 38,161 Total $ 1,384,877 $ 15,765 $ 14,261 $ 1,414,903 $ 5,199 $ 1,420,102 December 31, 2018 Commercial real estate $ 547,616 $ 177 $ 1,262 $ 549,055 $ 1,391 $ 550,446 Consumer real estate 249,273 1,676 1,691 252,640 922 253,562 Construction and land development 174,591 52 19 174,662 8 174,670 Commercial and industrial 388,719 7,790 6,545 403,054 1,546 404,600 Consumer 25,556 1 27 25,584 31 25,615 Other 20,901 — — 20,901 — 20,901 Total $ 1,406,656 $ 9,696 $ 9,544 $ 1,425,896 $ 3,898 $ 1,429,794 |
Summary of Changes and Breakdown of Allowance for Loan Losses and Loan Portfolio by Loan Category | The following tables detail the changes in the ALL for the years ending December 31, 2019, 2018 and 2017 by loan classification (in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total Year ended December 31, 2019 Balance, beginning of period $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Charged-off loans — (39 ) — (455 ) (164 ) (140 ) (798 ) Recoveries 23 20 — 380 82 23 528 Provision for loan losses 267 245 (373 ) 113 199 310 761 Balance, end of period $ 3,599 $ 1,231 $ 2,058 $ 5,074 $ 222 $ 420 $ 12,604 Year ended December 31, 2018 Balance, beginning of period $ 3,324 $ 1,063 $ 1,628 $ 7,209 $ 91 $ 406 $ 13,721 Charged-off loans — — — (4,831 ) (84 ) (39 ) (4,954 ) Recoveries 22 4 — 395 75 8 504 Provision for loan losses (37 ) (62 ) 803 2,263 23 (148 ) 2,842 Balance, end of period $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Year ended December 31, 2017 Balance, beginning of period $ 2,655 $ 1,013 $ 1,574 $ 5,618 $ 76 $ 698 $ 11,634 Charged-off loans — — — (12,769 ) — — (12,769 ) Recoveries 9 — — 1,865 112 — 1,986 Provision for loan losses 660 50 54 12,495 (97 ) (292 ) 12,870 Balance, end of period $ 3,324 $ 1,063 $ 1,628 $ 7,209 $ 91 $ 406 $ 13,721 A breakdown of the ALL and the loan portfolio by loan category at December 31, 2019 and 2018 follows (in thousands): Commercial real estate Consumer real estate Construction and land development Commercial and industrial Consumer Other Total December 31, 2019 Allowance for Loan Losses: Collectively evaluated for impairment $ 3,599 $ 1,231 $ 2,058 $ 5,074 $ 222 $ 420 $ 12,604 Individually evaluated for impairment — — — — — — — Acquired with deteriorated credit quality — — — — — — — Balances, end of period $ 3,599 $ 1,231 $ 2,058 $ 5,074 $ 222 $ 420 $ 12,604 Loans: Collectively evaluated for impairment $ 557,282 $ 255,006 $ 142,994 $ 393,057 $ 28,403 $ 38,161 $ 1,414,903 Individually evaluated for impairment 2,507 483 112 487 5 — 3,594 Acquired with deteriorated credit quality 110 608 5 864 18 — 1,605 Balances, end of period $ 559,899 $ 256,097 $ 143,111 $ 394,408 $ 28,426 $ 38,161 $ 1,420,102 December 31, 2018 Allowance for Loan Losses: Collectively evaluated for impairment $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Individually evaluated for impairment — — — — — — — Loans acquired with deteriorated credit quality — — — — — — — Balances, end of period $ 3,309 $ 1,005 $ 2,431 $ 5,036 $ 105 $ 227 $ 12,113 Loans: Collectively evaluated for impairment $ 549,055 $ 252,640 $ 174,662 $ 403,054 $ 25,584 $ 20,901 $ 1,425,896 Individually evaluated for impairment 1,278 183 — 817 — — 2,278 Acquired with deteriorated credit quality 113 739 8 729 31 — 1,620 Balances, end of period $ 550,446 $ 253,562 $ 174,670 $ 404,600 $ 25,615 $ 20,901 $ 1,429,794 |
Allocation of ALL with Corresponding Percentage of Loans in Each Category to Total Loans, Net of Deferred Fee | The following table presents the allocation of the ALL for each respective loan category with the corresponding percentage of loans in each category to total loans, net of deferred fees as of December 31, 2019 and 2018 (dollars in thousands): December 31, 2019 December 31, 2018 Amount Percent of total loans Amount Percent of total loans Commercial real estate $ 3,599 0.25 % $ 3,309 0.23 % Consumer real estate 1,231 0.09 % 1,005 0.07 % Construction and land development 2,058 0.14 % 2,431 0.17 % Commercial and industrial 5,074 0.36 % 5,036 0.35 % Consumer 222 0.02 % 105 0.01 % Other 420 0.03 % 227 0.02 % Total allowance for loan and lease losses $ 12,604 0.89 % $ 12,113 0.85 % |
Summary of Information Related to Impaired Loans | The following table presents information related to impaired loans as of and for the years ended December 31, 2019 and 2018 (in thousands): December 31, 2019 December 31, 2018 Recorded investment Unpaid principal balance Related allowance Recorded investment Unpaid principal balance Related allowance With no related allowance recorded: Commercial real estate $ 2,617 $ 2,621 $ — $ 1,391 $ 1,775 $ — Consumer real estate 1,091 1,327 — 922 1,204 — Construction and land development 117 132 — 8 18 — Commercial and industrial 1,351 2,173 — 1,546 6,350 — Consumer 23 41 — 31 56 — Other — — — — — — Subtotal 5,199 6,294 — 3,898 9,403 — With an allowance recorded: Commercial real estate — — — — — — Consumer real estate — — — — — — Construction and land development — — — — — — Commercial and industrial — — — — — — Consumer — — — — — — Other — — — — — — Subtotal — — — — — — Total $ 5,199 $ 6,294 $ — $ 3,898 $ 9,403 $ — The following table presents information related to the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2019, 2018 and 2017 (in thousands): Year Ended Year Ended Year Ended December 31, 2019 December 31, 2018 December 31, 2017 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized With no related allowance recorded: Commercial real estate $ 2,574 $ 313 $ 1,198 $ 158 $ 1,258 $ — Consumer real estate 1,037 105 185 — — — Construction and land development 119 4 94 2 — — Commercial and industrial 824 440 5,557 121 — — Consumer 23 2 7 — — — Other — — — — — — Subtotal 4,577 864 7,041 281 1,258 — With an allowance recorded: Commercial real estate — — — — — — Consumer real estate — — — — — — Construction and land development — — — — — — Commercial and industrial — — — — 2,077 — Consumer — — — — — — Other — — — — — — Subtotal — — — — 2,077 — Total $ 4,577 $ 864 $ 7,041 $ 281 $ 3,335 $ — |
Schedule of Aging of Recorded Investment in Past-due Loans, by Class of Loans | The following table presents the aging of the recorded investment in past-due loans as of December 31, 2019 and 2018 by class of loans (in thousands): 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Loans Not December 31, 2019 Past Due Past Due Past Due Past Due Past Due Total Commercial real estate $ 372 $ — $ — $ 372 $ 559,527 $ 559,899 Consumer real estate 3,642 474 643 4,759 251,338 256,097 Construction and land development 653 15 — 668 142,443 143,111 Commercial and industrial 1,277 8 440 1,725 392,683 394,408 Consumer 67 — 33 100 28,326 28,426 Other — — — — 38,161 38,161 Total $ 6,011 $ 497 $ 1,116 $ 7,624 $ 1,412,478 $ 1,420,102 December 31, 2018 Commercial real estate $ 300 $ 227 $ — $ 527 $ 549,919 $ 550,446 Consumer real estate 69 75 775 919 252,643 253,562 Construction and land development — — — — 174,670 174,670 Commercial and industrial 54 — — 54 404,546 404,600 Consumer 52 — 43 95 25,520 25,615 Other — — — — 20,901 20,901 Total $ 475 $ 302 $ 818 $ 1,595 $ 1,428,199 $ 1,429,794 |
Schedule of Recorded In Non Accrual Loans, Past Due Loans over 89 Days and Accruing and Troubled Debt Restructurings | The following table presents the recorded investment in non-accrual loans, past due loans over 89 days and accruing and troubled debt restructurings by class of loans as of December 31, 2019 and 2018 (in thousands): Past Due Over 89 Days Troubled Debt Non-Accrual and Accruing Restructurings December 31, 2019 Commercial real estate $ — $ — $ 2,446 Consumer real estate 894 12 — Construction and land development 117 — — Commercial and industrial 440 — 271 Consumer 13 26 — Other — — — Total $ 1,464 $ 38 $ 2,717 December 31, 2018 Commercial real estate $ — $ — $ 1,391 Consumer real estate 1,187 214 — Construction and land development 19 — — Commercial and industrial 817 — — Consumer 55 — — Other — — — Total $ 2,078 $ 214 $ 1,391 |
Schedule of Loans by Class Modified as TDR | The following table presents loans by class modified as TDR that occurred during the year ended December 31, 2019 (in thousands). Year Ended December 31, 2019 Number of contracts Pre modification outstanding recorded investment Post modification outstanding recorded investment, net of related allowance Commercial real estate 1 $ 1,228 $ 1,228 Consumer real estate — — — Construction and land development — — — Commercial and industrial 1 271 271 Consumer — — — Other — — — Total 2 $ 1,499 $ 1,499 |
Summary of contractually required payments for Athens Bancshares expected at acquisition date | The following table relates to acquired Athens PCI loans and summarizes the contractually required payments, which includes principal and interest, expected cash flows to be collected, and the fair value of acquired PCI loans at the acquisition date (in thousands): Athens Bancshares acquisition on October 1, 2018 Contractually required payments $ 3,151 Nonaccretable difference (1,049 ) Cash flows expected to be collected at acquisition 2,102 Accretable yield (436 ) Fair value of PCI loans at acquisition date $ 1,666 |
Summary of contractually required payments for Athens Bancshares not expected at acquisition date | The following table relates to acquired Athens purchased non-impaired loans and provides the contractually required payments, fair value, and estimate of contractual cash flows not expected to be collected at the acquisition date (in thousands): Athens Bancshares acquisition on October 1, 2018 Contractually required payments $ 404,692 Fair value of acquired loans at acquisition date 343,167 Contractual cash flows not expected to be collected 1,807 |
Schedule of activity in purchased credit impaired loans | The following table presents changes in the carrying value of PCI loans (in thousands): For the year ended December 31, 2019 Balance at beginning of period $ 1,620 Change due to payments received and accretion (15 ) Change due to loan charge-offs — Other — Balance at end of period $ 1,605 The following table presents changes in the accretable yield for PCI loans (in thousands): For the year ended December 31, 2019 Balance at beginning of period $ 440 Accretion (570 ) Reclassification from (to) nonaccretable difference 1,045 Other, net — Balance at end of period $ 915 |
Schedule of Components of Direct Financing Leases | The components of the direct financing leases as of December 31, 2019 and 2018 were as follows (in thousands): December 31, 2019 December 31, 2018 Total minimum lease payments receivable $ 59 $ 379 Less: Unearned income (1 ) (19 ) Net leases $ 58 $ 360 |
Summary of Future Minimum Lease Payments Receivable under Direct Financing Leases | The future minimum lease payments receivable under the direct financing leases as of December 31, 2019 were as follows (in thousands): Year ending December 31: 2020 $ 58 2021 — 2022 — 2023 — 2024 — $ 58 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transfers And Servicing [Abstract] | |
Schedule of Activity for Loan Servicing Rights and Related Valuation Allowance | Activity for loan servicing rights and the related valuation allowance are summarized as follows (in thousands): For the year ended December 31, 2019 Loan servicing rights: Balance at beginning of period $ 1,736 Additions 381 Disposals — Amortized to offset other noninterest income (362 ) Change in valuation allowance (211 ) Balance at end of period $ 1,544 Valuation allowance: Balance at beginning of period $ — Additions expensed — Reductions credited to other noninterest income — Direct write-downs (211 ) Balance at end of period $ (211 ) |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Summary of Premises and Equipment | Premises and equipment at December 31, 2019 and 2018 are summarized as follows (in thousands): Range of useful lives December 31, 2019 December 31, 2018 Land Not applicable $ 4,303 $ 2,997 Buildings 39 years 13,331 9,965 Leasehold improvements 1 to 17 years 939 939 Furniture and equipment 1 to 7 years 4,633 3,730 Fixed assets in process Not applicable — 4,023 23,206 21,654 Less accumulated depreciation and amortization (4,022 ) (2,833 ) $ 19,184 $ 18,821 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Lease Costs | Lease costs were as follows (in thousands): December 31, 2019 Operating lease cost $ 1,868 Short-term lease cost — Variable least cost — Total lease cost $ 1,868 |
Maturity Analysis of Operating Lease Liabilities and Reconciliation of Undiscounted Cash Flows | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows (in thousands): December 31, 2019 Lease payments due: 2020 $ 1,562 2021 1,590 2022 1,476 2023 1,425 2024 1,130 2025 and thereafter 7,710 Total undiscounted cash flows 14,893 Discount on cash flows (2,442 ) Total lease liability $ 12,451 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Change in Goodwill | The change in goodwill during the years ended December 31, 2019 and 2018 was as follows (in thousands): 2019 2018 Beginning of year $ 37,510 $ 6,219 Acquired goodwill — 31,291 Impairment — — End of year $ 37,510 $ 37,510 |
Summary of Acquired Intangible Assets | Acquired intangible assets at December 31, 2019 and 2018 were as follows (in thousands): December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Core deposit intangibles $ 9,267 $ (2,384 ) $ 9,267 $ (729 ) |
Summary of Estimated Amortization Expense | Estimated amortization expense for each of the next five years is as follows (in thousands): Year ending December 31: 2020 $ 1,477 2021 1,299 2022 1,121 2023 943 2024 764 Thereafter 1,279 Total $ 6,883 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Real Estate [Abstract] | |
Summary of Other Real Estate Owned Activity | Other real estate owned activity was as follows (in thousands): 2019 2018 2017 Beginning balance $ 988 $ — $ — Additions due to acquisition of Athens Bancshares — 988 — Loans transferred to other real estate owned 180 — — Direct write-downs — — — Sales of other real estate owned (124 ) — — End of year $ 1,044 $ 988 $ — |
Summary of Expenses Related to Other Real Estate Owned | Expenses related to other real estate owned during the years ended December 31, 2019, 2018 and 2017, respectively include (in thousands): 2019 2018 2017 Net (gain) loss on sales $ (3 ) $ — $ — Provision for unrealized losses — — — Operating expenses, net of rental income — — — Total $ (3 ) $ — $ — |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Scheduled Maturities of Time Deposits | Scheduled maturities of time deposits for the next five years and thereafter are as follows (in thousands): Maturity: 2020 $ 222,163 2021 53,077 2022 16,255 2023 8,369 2024 2,975 Thereafter 613 $ 303,452 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
Summary of Contractual Maturities and Average Effective Rates of Outstanding Advances | The following is a summary of the contractual maturities and average effective rates of outstanding advances (dollars in thousands): December 31, 2019 December 31, 2018 Year Amount Interest Rates Amount Interest Rates 2019 — — 125,000 2.48 % 2020 10,000 2.05 % — — 2021 — — — — 2022 — — — — 2023 — — — — 2024 — — — — Thereafter — — — — Total $ 10,000 2.05 % $ 125,000 2.48 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax | The following were changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ended December 31, 2019 and 2018 (in thousands): Unrealized Gains Unrealized Gains and and Losses Losses on Losses on on Available Securities Cash Flow for Sale Transferred to Year Ended December 31, 2019 Hedges Securities Held to Maturity Total Beginning Balance $ (2,636 ) $ (680 ) $ — $ (3,316 ) Other comprehensive income (loss) before reclassification, net of tax 826 4,815 — 5,641 Amounts reclassified from accumulated other comprehensive income (loss), net of tax (869 ) (73 ) — (942 ) Net current period other comprehensive income (loss) (43 ) 4,742 — 4,699 Ending Balance $ (2,679 ) $ 4,062 $ — $ 1,383 Year Ended December 31, 2018 Beginning Balance $ (3,679 ) $ 1,162 $ (10 ) $ (2,527 ) Other comprehensive income (loss) before reclassification, net of tax 1,891 (1,844 ) 20 67 Amounts reclassified from accumulated other comprehensive income (loss), net of tax (848 ) 2 (10 ) (856 ) Net current period other comprehensive income (loss) 1,043 (1,842 ) 10 (789 ) Ending Balance $ (2,636 ) $ (680 ) $ — $ (3,316 ) |
Summary of Significant Amounts Reclassified out off Accumulated Other Comprehensive Income (Loss) | The following were significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the years ended December 31, 2019, 2018 and 2017 (in thousands): Affected Line Item Details about Accumulated Other Year Ended Year Ended Year Ended in the Statement Where Comprehensive Income Components December 31, 2019 December 31, 2018 December 31, 2017 Net Income is Presented Unrealized losses on cash flow hedges $ (635 ) $ (441 ) $ (430 ) Interest expense - money market (243 ) (479 ) (429 ) Interest expense - Federal Home Loan Bank advances 9 72 89 Income tax benefit $ (869 ) $ (848 ) $ (770 ) Net of tax Unrealized gains and (losses) on available-for-sale securities $ (99 ) $ 3 $ (66 ) Net gain (loss) on sale of securities 26 (1 ) 25 Income tax (expense) benefit $ (73 ) $ 2 $ (41 ) Net of tax Unrealized losses on securities transferred to held-to-maturity $ — $ (14 ) $ (190 ) Interest income - securities — 4 73 Income tax benefit $ — $ (10 ) $ (117 ) Net of tax |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense are summarized as follows (in thousands): 2019 2018 2017 Current: Federal $ 3,215 $ 15 $ 214 State 1,044 (23 ) 36 4,259 (8 ) 250 Deferred: Federal 2,039 872 4,218 State 546 303 167 2,585 1,175 4,385 Total $ 6,844 $ 1,167 $ 4,635 |
Schedule of Reconciliation of Actual Income Tax Expense | A reconciliation of actual income tax expense in the financial statements to the “expected” tax expense (computed by applying the statutory federal income tax rate of 21% to income before income taxes) for the years ended December 31, 2019, 2018 and 2017 is as follows (in thousands): 2019 2018 2017 Computed "expected" tax expense $ 6,146 $ 2,272 $ 2,086 State income taxes, net of effect of federal income taxes 1,256 221 134 Tax-exempt interest income (302 ) (298 ) (418 ) Earnings on bank owned life insurance contracts (173 ) (559 ) (197 ) Disallowed expenses 84 93 86 Excess tax benefits related to stock compensation (57 ) (857 ) (632 ) Write-down of deferred tax assets due to tax reform — — 3,562 Nondeductible merger expenses — 281 — Other (110 ) 14 14 Total $ 6,844 $ 1,167 $ 4,635 |
Schedule of Deferred Tax Assets and Liabilities | Significant items that gave rise to deferred taxes at December 31, 2019 and 2018 were as follows (in thousands): December 31, 2019 December 31, 2018 Deferred tax assets: Allowance for loan losses $ 2,935 $ 2,795 Net operating loss carryforward 738 2,002 Organization and preopening costs 359 457 Stock-based compensation 200 835 Acquired loans 871 1,319 Unrealized loss on securities available-for-sale — 845 Accrued contributions 247 207 Other 189 685 Deferred tax assets 5,539 9,145 Deferred tax liabilities: Depreciation 804 645 Goodwill 154 81 Unrealized gain on securities available-for-sale 833 — Amortization of core deposit intangible 1,052 1,398 Other 568 411 Deferred tax liabilities 3,411 2,535 Net deferred tax asset $ 2,128 $ 6,610 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments Representing Credit Risk | The following table sets forth outstanding financial instruments whose contract amounts represent credit risk as of December 31, 2019 and 2018 (in thousands): Contract or notional amount December 31, 2019 December 31, 2018 Financial instruments whose contract amounts represent credit risk: Unused commitments to extend credit $ 672,933 $ 707,675 Standby letters of credit 9,634 12,273 Total $ 682,567 $ 719,948 |
Regulatory Matters And Restri_2
Regulatory Matters And Restrictions On Dividends (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Schedule of Capital Amounts and Ratios | The Company’s and the Bank’s capital amounts and ratios are presented in the following table (dollars in thousands): Actual Minimum capital requirement (1) Minimum to be well-capitalized (2) Amount Ratio Amount Ratio Amount Ratio At December 31, 2019: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 237,857 13.45 % $ 141,436 8.0 % N/A N/A CapStar Bank 224,443 12.70 141,388 8.0 176,735 10.0 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 225,074 12.73 106,077 6.0 N/A N/A CapStar Bank 211,660 11.98 106,041 6.0 141,388 8.0 Common equity Tier 1 capital to risk weighted assets: CapStar Financial Holdings, Inc. 225,074 12.73 79,558 4.5 N/A N/A CapStar Bank 195,160 11.04 79,531 4.5 114,878 6.5 Tier I capital to average assets: CapStar Financial Holdings, Inc. 225,074 11.37 79,201 4.0 N/A N/A CapStar Bank 211,660 10.70 79,150 4.0 98,938 5.0 At December 31, 2018: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 222,030 12.84 % $ 138,336 8.0 % N/A N/A CapStar Bank 201,972 11.68 138,294 8.0 172,868 10.0 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 209,738 12.13 103,752 6.0 N/A N/A CapStar Bank 189,680 10.97 103,721 6.0 138,294 8.0 Common equity Tier 1 capital to risk weighted assets: CapStar Financial Holdings, Inc. 200,738 11.61 77,814 4.5 N/A N/A CapStar Bank 173,180 10.02 77,791 4.5 112,364 6.5 Tier I capital to average assets: CapStar Financial Holdings, Inc. 209,738 11.06 75,867 4.0 N/A N/A CapStar Bank 189,680 10.01 75,828 4.0 94,785 5.0 (1) For the calendar year 2019, the Company was required to maintain a capital conservation buffer of Tier 1 common equity capital in excess of minimum risk-based capital ratios by at least 1.875% to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. (2) For the Company to be well-capitalized, the Bank must be well-capitalized and the Company must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve to meet and maintain a specific capital level for any capital measure. |
Stock Options and Restricted _2
Stock Options and Restricted Shares (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Company Recognized Stock-Based Compensation Expense | The Company has recognized stock-based compensation expense, within salaries and employee benefits for employees, and within other non-interest expense for directors, in the consolidated statements of income as follows (in thousands): For the year ended December 31, 2019 2018 2017 Stock-based compensation expense before income taxes $ 1,262 $ 2,079 $ 1,061 Less: deferred tax benefit (330 ) (543 ) (406 ) Reduction of net income $ 932 $ 1,536 $ 655 |
Summary of Changes in Company's Nonvested Restricted Shares | A summary of the changes in the Company’s nonvested restricted shares for 2019 follows: Weighted Average Restricted Grant Date Nonvested Shares Shares Fair Value Nonvested at beginning of period 157,616 $ 17.00 Granted 31,683 15.86 Vested (83,062 ) 15.93 Forfeited (21,540 ) 17.72 Nonvested at end of period 84,697 $ 17.44 |
Summary of Fair Value of Options Granted Using Weighted Average Assumptions | The fair value of options granted was determined using the following weighted average assumptions as of the grant date. The Company granted 50,000 options during 2019. There were no options granted during 2018. 2019 Dividend yield 1.35 % Expected term (in years) 6.50 Expected stock price volatility 29.55 % Risk-free interest rate 2.25 % |
Summary of Activity in Stock Options | A summary of the activity in stock options for 2019 follows: Weighted Weighted Average Average Remaining Exercise Contractual Shares Price Term (years) Outstanding at beginning of period 507,903 $ 8.66 Granted 50,000 14.84 Exercised (286,701 ) 7.33 Forfeited or expired — — Outstanding at end of period 271,202 $ 11.22 4.9 Fully vested and expected to vest 271,086 $ 11.22 4.9 Exercisable at end of period 214,952 $ 10.32 3.8 |
Information Related to Stock Options | Information related to stock options during 2019, 2018 and 2017 follows: 2019 2018 2017 Intrinsic value of options exercised $ 2,478,086 $ 7,654,738 $ 2,010,536 Cash received from option exercises 1,930,737 6,897,845 2,013,840 Tax benefit realized from option exercises 103,847 846,725 774,056 Weighted average fair value of options granted 5.35 — — |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Interest-Rate Swaps Designated as Cash Flow Hedges | Summary information about the interest-rate swaps designated as cash flow hedges was as follows (dollars in thousands): December 31, 2019 December 31, 2018 Notional amounts $ — $ 20,000 Weighted average pay rates — 3.54 % Weighted average receive rates — 3 month LIBOR Weighted average maturity — 4.5 years Fair value $ — $ (836 ) Amount of unrealized loss recognized in accumulated other comprehensive income, net of tax $ — $ (617 ) |
Summary of Customer Related Interest Rate Swaps | A summary of the Company’s customer related interest rate swaps is as follows (in thousands): December 31, 2019 December 31, 2018 Notional Estimated Notional Estimated amount fair value amount fair value Interest rate swap agreements: Pay fixed/receive variable swaps $ 45,053 $ (926 ) $ 29,126 $ 24 Pay variable/receive fixed swaps 45,053 926 29,126 (24 ) Total $ 90,106 $ — $ 58,252 $ — |
Summary of Net Gains (Losses) Relating to Mortgage Banking Derivative Instruments Included in Mortgage Banking Income | The net gains (losses) relating to mortgage banking derivative instruments included in mortgage banking income were as follows (dollars in thousands): For the year ended December 31, 2019 Mortgage loan interest rate lock commitments $ 648 Mortgage-backed securities forward sales commitments (148 ) Total $ 500 |
Summary of Amount and Fair Value of Mortgage Banking Derivative Instruments Included in Consolidated Balance Sheets | The amount and fair value of mortgage banking derivatives included in the consolidated balance sheets was as follows (dollars in thousands): December 31, 2019 December 31, 2018 Notional Estimated Notional Estimated amount fair value amount fair value Included in other assets: Mortgage loan interest rate lock commitments $ 44,694 $ 648 $ — $ — Included in other liabilities: Mortgage-backed securities forward sales commitments $ 38,500 $ 148 $ — $ — |
Related Party (Tables)
Related Party (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions Activity within Loans | The Company may enter into loan transactions with certain directors, executive officers, significant shareholders, and their affiliates. Such transactions were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions with persons not affiliated with the Company, and did not, in the opinion of management, involve more than normal credit risk or present other unfavorable features. None of these loans were impaired at December 31, 2019 or 2018. Activity within these loans during the years ended December 31, 2019 and 2018 was as follows (in thousands): Total commitment Total funded commitment Year ended December 31, 2019 Beginning of period $ 44,812 $ 15,445 New commitments/draw downs 9,336 2,515 Repayments (32,333 ) (7,287 ) End of period $ 21,815 $ 10,673 Year ended December 31, 2018 Beginning of period $ 49,409 $ 21,890 New commitments/draw downs 3,631 1,038 Repayments (8,228 ) (7,483 ) End of period $ 44,812 $ 15,445 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair value measurements at December 31, 2019 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. government-sponsored agencies $ 10,331 $ — $ 10,331 $ — Obligations of states and political subdivisions 45,960 — 45,960 — Mortage-backed securities-residential 138,679 — 138,679 — Asset-backed securities 3,197 — 3,197 — Other debt securities 14,962 — 14,962 — Loans held for sale 168,222 — 168,222 — Derivative assets: Non-hedging derivatives: Interest rate swaps - customer related 926 — 926 — Mortgage loan interest rate lock commitments 648 — — 648 Liabilities: Derivative liabilities: Non-hedging derivatives: Interest rate swaps - customer related (926 ) — (926 ) — Mortgage-backed securities forward sales commitments (148 ) — (148 ) — Fair value measurements at December 31, 2018 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U.S. government-sponsored agencies $ 10,706 $ — $ 10,706 $ — Obligations of states and political subdivisions 61,926 — 61,926 — Mortage-backed securities-residential 144,158 — 144,158 — Asset-backed securities 15,284 — 15,284 — Other debt securities 11,734 — 11,734 — Derivatives: Interest rate swaps - customer related 494 — 494 — Liabilities: Derivatives: Interest rate swaps - customer related (494 ) — (494 ) — Interest rate swaps - cash flow hedges (836 ) — (836 ) — |
Reconciliation of Assets Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3) | The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended December 31, 2019 and 2018 (dollars in thousands): Mortgage Loan Interest Rate Lock Commitments 2019 2018 Balance of recurring Level 3 assets at January 1st $ — $ — Total gains or losses for the period: Included in mortgage banking income 648 — Balance of recurring Level 3 assets at December 31st $ 648 $ — |
Summary of Quantitative Information About Level 3 Fair Value Measurements for Assets Measured at Fair Value on Recurring and Non-recurring Basis | The following table presents quantitative information about recurring Level 3 fair value measurements at December 31, 2019 (dollars in thousands). There were no Level 3 fair value measurements at December 31, 2018. Range Fair Valuation (Weighted- December 31, 2019 Value Technique(s) Unobservable Input(s) Average) Assets: Non-hedging derivatives: Mortgage loan interest rate lock commitments $ 648 Consensus pricing Origination pull-through rate 68% - 95% (83%) |
Summary of Carrying Value and Fair Values of the Company's Financial Instruments | The carrying value and estimated fair values of the Company’s financial instruments at December 31, 2019 and 2018 were as follows (in thousands): December 31, 2019 December 31, 2018 Carrying Carrying Fair value amount Fair value amount Fair value level of input Financial assets: Cash and due from banks, interest-bearing deposits in financial institutions $ 101,094 $ 101,094 $ 94,681 $ 94,681 Level 1 Federal funds sold 175 175 10,762 10,762 Level 1 Securities available-for-sale 213,129 213,129 243,808 243,808 Level 2 Securities held-to-maturity 3,313 3,411 3,734 3,785 Level 2 Loans held for sale 168,222 169,072 57,618 58,596 Level 2 Restricted equity securities 13,689 N/A 12,038 N/A N/A Loans 1,420,102 1,414,757 1,429,794 1,442,082 Level 3 Accrued interest receivable 5,792 5,792 5,964 5,964 Level 2 Other assets 36,393 36,393 34,489 34,489 Level 2 / Level 3 Financial liabilities: Deposits 1,729,451 1,730,206 1,570,008 1,572,880 Level 3 Federal Home Loan Bank advances 10,000 10,014 125,000 126,548 Level 2 Other liabilities 1,394 1,394 2,753 2,753 Level 3 |
Parent Company Only Financial_2
Parent Company Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed Balance Sheets December 31, 2019 December 31, 2018 Assets Cash and cash equivalents $ 12,874 $ 19,918 Investment in consolidated subsidiary 259,632 234,263 Other assets 578 499 Total assets $ 273,084 $ 254,680 Liabilities and Shareholders’ Equity Other liabilities $ 38 301 Total shareholders’ equity 273,046 254,379 Total liabilities and shareholders’ equity $ 273,084 $ 254,680 |
Condensed Income Statements | Condensed Income Statements Year Ended Year Ended December 31, 2019 December 31, 2018 Income - dividends from subsidiary $ 3,530 $ 1,225 Expenses 1,083 1,054 Income before income taxes and equity in undistributed net income of subsidiary 2,447 171 Income tax benefit (262 ) (242 ) Income before equity in undistributed net income of subsidiary 2,709 413 Equity in undistributed net income of subsidiary 19,713 9,242 Net income $ 22,422 $ 9,655 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Year Ended Year Ended December 31, 2019 December 31, 2018 Cash flows from operating activities: Net income $ 22,422 $ 9,655 Adjustments to reconcile net income to net cash provided by operating activities: Increase in other assets (78 ) (221 ) Increase (Decrease) in other liabilities (263 ) 181 Equity in undistributed net income of subsidiary (19,713 ) (9,242 ) Net cash provided by operating activities 2,368 373 Cash flows from investing activities: Cash received from acquisitions, net — 1,421 Net cash provided by investing activities — 1,421 Cash flows from financing activities: Repurchase of common stock (7,836 ) — Exercise of common stock options and warrants 1,931 5,260 Common and preferred stock dividends paid (3,507 ) (1,244 ) Net cash provided by (used in) financing activities (9,412 ) 4,016 Net increase (decrease) in cash and cash equivalents (7,044 ) 5,810 Cash and cash equivalents at beginning of period 19,918 14,108 Cash and cash equivalents at end of period $ 12,874 $ 19,918 |
Quarterly Financial Results (_2
Quarterly Financial Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Results (Unaudited) | The following is a summary of quarterly financial results (unaudited) for 2019, 2018 and 2017: First Quarter Second Quarter Third Quarter Fourth Quarter 2019 Interest income $ 22,967 $ 23,158 $ 23,216 $ 22,205 Interest expense 5,965 6,150 6,060 5,624 Net interest income 17,002 17,008 17,156 16,581 Provision for loan losses 886 — (125 ) — Net interest income after provision for loan losses 16,116 17,008 17,281 16,581 Noninterest income 4,735 7,032 6,788 5,719 Noninterest expense 14,725 16,470 15,531 15,266 Net income before income tax expense 6,126 7,570 8,538 7,034 Income tax expense 1,346 1,814 2,072 1,613 Net income $ 4,780 $ 5,756 $ 6,466 $ 5,421 Net income per share, basic $ 0.27 $ 0.33 $ 0.36 $ 0.30 Net income per share, diluted $ 0.25 $ 0.31 $ 0.35 $ 0.29 2018 Interest income $ 13,744 $ 15,354 $ 15,782 $ 22,900 Interest expense 2,898 3,767 4,239 5,184 Net interest income 10,846 11,587 11,543 17,716 Provision for loan losses 678 169 481 1,514 Net interest income after provision for loan losses 10,168 11,418 11,062 16,202 Noninterest income 3,088 2,765 3,218 6,387 Noninterest expense 9,580 10,005 10,070 23,832 Net income (loss) before income tax expense 3,676 4,178 4,210 (1,243 ) Income tax expense (benefit) 483 665 554 (535 ) Net income (loss) $ 3,193 $ 3,513 $ 3,656 $ (708 ) Net income (loss) per share, basic $ 0.27 $ 0.30 $ 0.30 $ (0.04 ) Net income (loss) per share, diluted $ 0.25 $ 0.27 $ 0.28 $ (0.04 ) 2017 Interest income $ 11,979 $ 12,891 $ 13,521 $ 13,124 Interest expense 2,047 2,320 2,678 2,606 Net interest income 9,932 10,571 10,843 10,518 Provision for loan losses 3,405 9,690 (195 ) (30 ) Net interest income after provision for loan losses 6,527 881 11,038 10,548 Noninterest income 2,133 2,666 3,372 2,736 Noninterest expense 8,376 8,217 8,475 8,699 Net income (loss) before income tax expense 284 (4,670 ) 5,935 4,585 Income tax expense (benefit) (47 ) (1,328 ) 1,516 4,494 Net income (loss) $ 331 $ (3,342 ) $ 4,419 $ 91 Net income (loss) per share, basic $ 0.03 $ (0.30 ) $ 0.39 $ 0.01 Net income (loss) per share, diluted $ 0.03 $ (0.26 ) $ 0.35 $ 0.01 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)Securityshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Jan. 01, 2019USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Date of acquisition | Feb. 5, 2016 | |||
Number of Securities | Security | 3 | |||
Accrual of interest on loans due discontinued period | 90 days | |||
Minimum loan losses exposure for formal credit review | $ 1,500,000 | |||
Look-back period | 41 quarters | 37 quarters | 33 quarter | |
Noninterest income | $ 9,467,000 | $ 5,653,000 | $ 6,238,000 | |
Operating lease, right-of-use asset | 11,700,000 | 12,800,000 | $ 12,800,000 | |
Operating lease, liability | $ 12,451,000 | 13,400,000 | $ 13,400,000 | |
Income tax examination description | A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | |||
Tax benefit from income tax examination | $ 0 | |||
Restricted balance of cash reserve with Federal Reserve Bank | $ 73,444,000 | $ 63,890,000 | $ 43,940,000 | |
Antidilutive stock options excluded from diluted earnings per share | shares | 0 | 0 | 0 | |
Cumulative-effect adjustment to retained earnings | $ 600,000 | |||
Income tax effects, accumulated other comprehensive income to retained earnings, amount | $ 259,000 | |||
Other Operating Expenses | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Advertising expense | $ 370,000 | 383,000 | $ 310,000 | |
IRS | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Open to audit | 2016 2017 2018 2019 | |||
States | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Open to audit | 2016 2017 2018 2019 | |||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Premises and equipment, useful lives | 1 year | |||
Income tax benefit recognized percentage | 50.00% | |||
Minimum | Core Deposit | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Intangible assets, useful lives | 6 years | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Premises and equipment, useful lives | 39 years | |||
Maximum | Core Deposit | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Intangible assets, useful lives | 10 years | |||
Bank Servicing | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Noninterest income | $ 340,000 | 102,000 | $ 0 | |
Residential mortgage loans held for sale | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Mortgage banking income | 600,000 | |||
Residential mortgage loans held for sale | $ 30,740,000 | $ 0 | ||
Consumer Loan | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Accrual of interest on loans due charged off | 180 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Difference Between the Fair Value and Aggregate Unpaid Principal Balance (Details) - Residential mortgage loans held for sale - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 30,740,000 | $ 0 |
Aggregate Unpaid Principal Balance | 30,178,000 | |
Difference | $ 562,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic net income per share calculation: | |||||||||||||||
Numerator – Net income | $ 22,422 | $ 9,655 | $ 1,501 | ||||||||||||
Denominator – Average common shares outstanding | 17,886,164 | 13,277,614 | 11,280,580 | ||||||||||||
Basic net income per share | $ 0.30 | $ 0.36 | $ 0.33 | $ 0.27 | $ (0.04) | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.01 | $ 0.39 | $ (0.30) | $ 0.03 | $ 1.25 | $ 0.73 | $ 0.13 |
Diluted net income per share calculation: | |||||||||||||||
Numerator – Net income | $ 22,422 | $ 9,655 | $ 1,501 | ||||||||||||
Denominator – Average common shares outstanding | 17,886,164 | 13,277,614 | 11,280,580 | ||||||||||||
Dilutive shares contingently issuable | 727,060 | 1,202,733 | 1,522,931 | ||||||||||||
Average diluted common shares outstanding | 18,613,224 | 14,480,347 | 12,803,511 | ||||||||||||
Diluted net income per share | $ 0.29 | $ 0.35 | $ 0.31 | $ 0.25 | $ (0.04) | $ 0.28 | $ 0.27 | $ 0.25 | $ 0.01 | $ 0.35 | $ (0.26) | $ 0.03 | $ 1.20 | $ 0.67 | $ 0.12 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - Athens Bancshares - USD ($) | Dec. 31, 2018 | Oct. 01, 2018 |
Business Acquisition [Line Items] | ||
Percentage of voting interests acquired | 100.00% | |
Common stock exchange ratio | 2.864 | |
Acquisition related costs | $ 9,803,000 | |
Goodwill | $ 31,291,000 |
Acquisition - Schedule of Consi
Acquisition - Schedule of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2019 | Oct. 01, 2018 | Dec. 31, 2017 | |
Total cost of acquisition: | ||||
Goodwill | $ 37,510 | $ 37,510 | $ 6,219 | |
Athens Bancshares | ||||
Assets: | ||||
Cash and cash equivalents | $ 12,053 | |||
Securities | 67,426 | |||
Loans, gross | 344,833 | |||
Premises and equipment, net | 9,208 | |||
Core deposit intangible | 8,980 | |||
Other | 30,510 | |||
Total | 473,010 | |||
Liabilities: | ||||
Deposits | 404,520 | |||
Other | 6,863 | |||
Total | 411,383 | |||
Net identifiable assets acquired | 61,627 | |||
Total cost of acquisition: | ||||
Total cost of acquisition | 92,918 | |||
Goodwill | 31,291 | |||
Athens Bancshares | As recorded by Athens Bancshares | ||||
Assets: | ||||
Cash and cash equivalents | 12,053 | |||
Securities | 67,342 | |||
Loans, gross | 349,597 | |||
Allowance for loan losses | (4,039) | |||
Premises and equipment, net | 7,637 | |||
Core deposit intangible | 2,758 | |||
Other | 29,566 | |||
Total | 464,914 | |||
Liabilities: | ||||
Deposits | 404,027 | |||
Other | 5,363 | |||
Total | 409,390 | |||
Athens Bancshares | Initial Fair Value Adjustment | ||||
Assets: | ||||
Securities | 84 | |||
Loans, gross | (4,764) | |||
Allowance for loan losses | 4,039 | |||
Premises and equipment, net | 1,571 | |||
Core deposit intangible | 6,222 | |||
Other | 944 | |||
Total | 8,096 | |||
Liabilities: | ||||
Deposits | 493 | |||
Other | 1,500 | |||
Total | $ 1,993 | |||
Total cost of acquisition: | ||||
Total cost of acquisition | 92,918 | |||
Athens Bancshares | Initial Fair Value Adjustment | Rolled Stock Options | ||||
Total cost of acquisition: | ||||
Total cost of acquisition | 6,380 | |||
Athens Bancshares | Common Stock | Initial Fair Value Adjustment | ||||
Total cost of acquisition: | ||||
Total cost of acquisition | $ 86,538 |
Acquisition - Schedule of Con_2
Acquisition - Schedule of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed (Parenthetical) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Athens Bancshares | |
Business Acquisition [Line Items] | |
Charitable contribution | $ 1,500,000 |
Acquisition - Schedule of Unaud
Acquisition - Schedule of Unaudited Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||||||||||||||
Net interest income | $ 16,581 | $ 17,156 | $ 17,008 | $ 17,002 | $ 17,716 | $ 11,543 | $ 11,587 | $ 10,846 | $ 10,518 | $ 10,843 | $ 10,571 | $ 9,932 | $ 67,748 | $ 51,692 | $ 41,863 |
Noninterest income | 5,719 | 6,788 | 7,032 | 4,735 | 6,387 | 3,218 | 2,765 | 3,088 | 2,736 | 3,372 | 2,666 | 2,133 | 24,274 | 15,459 | 10,908 |
Net income | $ 5,421 | $ 6,466 | $ 5,756 | $ 4,780 | $ (708) | $ 3,656 | $ 3,513 | $ 3,193 | $ 91 | $ 4,419 | $ (3,342) | $ 331 | $ 22,422 | $ 9,655 | $ 1,501 |
Per share information: | |||||||||||||||
Basic net income per share of common stock | $ 0.30 | $ 0.36 | $ 0.33 | $ 0.27 | $ (0.04) | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.01 | $ 0.39 | $ (0.30) | $ 0.03 | $ 1.25 | $ 0.73 | $ 0.13 |
Diluted net income per share of common stock | $ 0.29 | $ 0.35 | $ 0.31 | $ 0.25 | $ (0.04) | $ 0.28 | $ 0.27 | $ 0.25 | $ 0.01 | $ 0.35 | $ (0.26) | $ 0.03 | $ 1.20 | $ 0.67 | $ 0.12 |
Athens Bancshares | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Net interest income | $ 66,935 | $ 59,148 | |||||||||||||
Noninterest income | 20,692 | 17,540 | |||||||||||||
Total revenue | 87,627 | 76,688 | |||||||||||||
Net income | $ 21,167 | $ 5,851 | |||||||||||||
Per share information: | |||||||||||||||
Basic net income per share of common stock | $ 1.24 | $ 0.36 | |||||||||||||
Diluted net income per share of common stock | $ 1.14 | $ 0.32 |
Investment Securities - Summary
Investment Securities - Summary of Company's Classification of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Securities available for sale [Abstract] | ||
Amortized Cost | $ 209,943 | $ 247,042 |
Gross unrealized gains | 3,906 | 1,616 |
Gross unrealized (losses) | (720) | (4,850) |
Estimated fair value | 213,129 | 243,808 |
Securities held to maturity [Abstract] | ||
Amortized Cost | 3,313 | 3,734 |
Gross unrealized gains | 98 | 54 |
Gross unrealized (losses) | (3) | |
Estimated fair value | 3,411 | 3,785 |
U. S. government agency securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 10,421 | 11,053 |
Gross unrealized gains | 4 | |
Gross unrealized (losses) | (94) | (347) |
Estimated fair value | 10,331 | 10,706 |
State and municipal securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 44,053 | 62,142 |
Gross unrealized gains | 1,927 | 765 |
Gross unrealized (losses) | (20) | (981) |
Estimated fair value | 45,960 | 61,926 |
Securities held to maturity [Abstract] | ||
Amortized Cost | 3,313 | 3,734 |
Gross unrealized gains | 98 | 54 |
Gross unrealized (losses) | (3) | |
Estimated fair value | 3,411 | 3,785 |
Mortgage-backed securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 137,305 | 146,547 |
Gross unrealized gains | 1,834 | 776 |
Gross unrealized (losses) | (460) | (3,165) |
Estimated fair value | 138,679 | 144,158 |
Asset-backed securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 3,325 | 15,437 |
Gross unrealized gains | 4 | |
Gross unrealized (losses) | (128) | (157) |
Estimated fair value | 3,197 | 15,284 |
Other debt securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 14,839 | 11,863 |
Gross unrealized gains | 141 | 71 |
Gross unrealized (losses) | (18) | (200) |
Estimated fair value | $ 14,962 | $ 11,734 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2013 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Available For Sale Securities [Line Items] | ||||
Available for sale securities transferred to held to maturity | $ 36,789,000 | |||
Securities Other Than U S Government and Agencies | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Holdings of securities of any one issuer greater than ten percent of stockholder's equity | $ 0 | $ 0 | ||
Public Deposits, Derivative Positions and Federal Home Loan Bank Advances | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Market value of securities | $ 70,350,000 | $ 171,542,000 | ||
Accounting Standards Update 2017-12 | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Held to maturity securities transferred to available for sale securities | $ 41,665,000 |
Investment Securities - Summa_2
Investment Securities - Summary of Amortized Cost and Fair Value of Debt and Equity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale, Amortized cost [Abstract] | ||
Due in less than one year | $ 9,805 | |
Due one to five years | 28,593 | |
Due five to ten years | 29,545 | |
Due beyond ten years | 1,370 | |
Amortized Cost | 209,943 | $ 247,042 |
Available-for-sale, Estimated fair value [Abstract] | ||
Due in less than one year | 9,909 | |
Due one to five years | 29,230 | |
Due five to ten years | 30,758 | |
Due beyond ten years | 1,356 | |
Estimated fair value | 213,129 | 243,808 |
Held-to-maturity, Amortized cost [Abstract] | ||
Due in less than one year | 881 | |
Due one to five years | 2,432 | |
Amortized Cost | 3,313 | 3,734 |
Securities held to maturity [Abstract] | ||
Due in less than one year | 884 | |
Due one to five years | 2,527 | |
Estimated fair value | 3,411 | 3,785 |
Mortgage-backed securities | ||
Available-for-sale, Amortized cost [Abstract] | ||
Amortized cost | 137,305 | |
Amortized Cost | 137,305 | 146,547 |
Available-for-sale, Estimated fair value [Abstract] | ||
Estimated fair value | 138,679 | |
Estimated fair value | 138,679 | 144,158 |
Asset-backed securities | ||
Available-for-sale, Amortized cost [Abstract] | ||
Amortized cost | 3,325 | |
Amortized Cost | 3,325 | 15,437 |
Available-for-sale, Estimated fair value [Abstract] | ||
Estimated fair value | 3,197 | |
Estimated fair value | $ 3,197 | $ 15,284 |
Investment Securities - Summa_3
Investment Securities - Summary of Sale of Debt and Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |||
Proceeds | $ 68,068 | $ 38,322 | $ 46,762 |
Gross gains | 49 | 116 | 124 |
Gross losses | $ (148) | $ (113) | $ (190) |
Investment Securities - Summa_4
Investment Securities - Summary of Securities with Unrealized Losses Aggregated by Major Security Type and Length of Time Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | $ 42,632 | $ 34,154 |
Less than 12 months, Gross unrealized (losses) | (215) | (574) |
12 months or more, Estimated fair value | 28,514 | 117,753 |
12 months or more, Gross unrealized losses | (505) | (4,279) |
Total, Estimated fair value | 71,146 | 151,907 |
Total, Gross unrealized losses | (720) | (4,853) |
U. S. government agency securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 6,694 | |
Less than 12 months, Gross unrealized (losses) | (51) | |
12 months or more, Estimated fair value | 1,637 | 10,706 |
12 months or more, Gross unrealized losses | (43) | (347) |
Total, Estimated fair value | 8,331 | 10,706 |
Total, Gross unrealized losses | (94) | (347) |
State and municipal securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 2,356 | 13,455 |
Less than 12 months, Gross unrealized (losses) | (12) | (212) |
12 months or more, Estimated fair value | 814 | 17,376 |
12 months or more, Gross unrealized losses | (8) | (772) |
Total, Estimated fair value | 3,170 | 30,831 |
Total, Gross unrealized losses | (20) | (984) |
Mortgage-backed securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 30,570 | 7,075 |
Less than 12 months, Gross unrealized (losses) | (136) | (17) |
12 months or more, Estimated fair value | 21,364 | 87,232 |
12 months or more, Gross unrealized losses | (324) | (3,148) |
Total, Estimated fair value | 51,934 | 94,307 |
Total, Gross unrealized losses | (460) | (3,165) |
Asset-backed securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 8,262 | |
Less than 12 months, Gross unrealized (losses) | (145) | |
12 months or more, Estimated fair value | 3,197 | 2,439 |
12 months or more, Gross unrealized losses | (128) | (12) |
Total, Estimated fair value | 3,197 | 10,701 |
Total, Gross unrealized losses | (128) | (157) |
Other debt securities | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Estimated fair value | 3,012 | 5,362 |
Less than 12 months, Gross unrealized (losses) | (16) | (200) |
12 months or more, Estimated fair value | 1,502 | |
12 months or more, Gross unrealized losses | (2) | |
Total, Estimated fair value | 4,514 | 5,362 |
Total, Gross unrealized losses | $ (18) | $ (200) |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | $ 1,420,102 | $ 1,429,794 | ||
Allowance for loan losses | (12,604) | (12,113) | $ (13,721) | $ (11,634) |
Loans, net | 1,407,498 | 1,417,681 | ||
Commercial real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 559,899 | 550,446 | ||
Allowance for loan losses | (3,599) | (3,309) | (3,324) | (2,655) |
Consumer real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 256,097 | 253,562 | ||
Allowance for loan losses | (1,231) | (1,005) | (1,063) | (1,013) |
Construction and land development | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 143,111 | 174,670 | ||
Allowance for loan losses | (2,058) | (2,431) | (1,628) | (1,574) |
Commercial and industrial | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 394,408 | 404,600 | ||
Allowance for loan losses | (5,074) | (5,036) | (7,209) | (5,618) |
Consumer | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 28,426 | 25,615 | ||
Allowance for loan losses | (222) | (105) | (91) | (76) |
Other | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | 38,161 | 20,901 | ||
Allowance for loan losses | $ (420) | $ (227) | $ (406) | $ (698) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)Contract | Dec. 31, 2018USD ($)Contract | Dec. 31, 2017USD ($)Contract | Oct. 01, 2018USD ($) | |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Variable-rate loans | $ 785,329,000 | $ 827,491,000 | ||
Fixed-rate loans | 634,773,000 | 602,404,000 | ||
Minimum loan amount for loans analyzed by credit risk | 500,000 | |||
Total loans | 1,420,102,000 | 1,429,794,000 | ||
Interest income recognized on a cash basis for impaired loans | 0 | 0 | $ 0 | |
Investments in TDR | 2,700,000 | 1,400,000 | ||
Additional commitments related to TDR | $ 0 | $ 0 | ||
New TDR identified during the period | Contract | 2 | 0 | 0 | |
TDR, payment default within twelve months | Contract | 0 | 0 | 0 | |
Loan period considered as payment default | 30 days | |||
Recorded loans with a fair value | $ 344,800,000 | |||
Minimum | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Lease term | 5 years | |||
Maximum | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Lease term | 6 years | |||
Purchased Credit Impaired | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Recorded loans with a fair value | $ 1,700,000 | |||
Troubled Debt Restructurings | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Specific allowance related to loans | $ 0 | $ 0 | ||
Doubtful | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans | $ 0 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Risk Category of Loans by Applicable Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 1,420,102 | $ 1,429,794 |
Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 5,199 | 3,898 |
Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,414,903 | 1,425,896 |
Performing Financial Instruments | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,384,877 | 1,406,656 |
Performing Financial Instruments | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 15,765 | 9,696 |
Performing Financial Instruments | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 14,261 | 9,544 |
Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 559,899 | 550,446 |
Commercial real estate | Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 2,617 | 1,391 |
Commercial real estate | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 557,282 | 549,055 |
Commercial real estate | Performing Financial Instruments | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 551,929 | 547,616 |
Commercial real estate | Performing Financial Instruments | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 915 | 177 |
Commercial real estate | Performing Financial Instruments | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 4,438 | 1,262 |
Consumer real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 256,097 | 253,562 |
Consumer real estate | Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,091 | 922 |
Consumer real estate | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 255,006 | 252,640 |
Consumer real estate | Performing Financial Instruments | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 252,952 | 249,273 |
Consumer real estate | Performing Financial Instruments | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 503 | 1,676 |
Consumer real estate | Performing Financial Instruments | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,551 | 1,691 |
Construction and land development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 143,111 | 174,670 |
Construction and land development | Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 117 | 8 |
Construction and land development | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 142,994 | 174,662 |
Construction and land development | Performing Financial Instruments | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 142,978 | 174,591 |
Construction and land development | Performing Financial Instruments | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 52 | |
Construction and land development | Performing Financial Instruments | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 16 | 19 |
Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 394,408 | 404,600 |
Commercial and industrial | Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,351 | 1,546 |
Commercial and industrial | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 393,057 | 403,054 |
Commercial and industrial | Performing Financial Instruments | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 370,475 | 388,719 |
Commercial and industrial | Performing Financial Instruments | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 14,341 | 7,790 |
Commercial and industrial | Performing Financial Instruments | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 8,241 | 6,545 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 28,426 | 25,615 |
Consumer | Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 23 | 31 |
Consumer | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 28,403 | 25,584 |
Consumer | Performing Financial Instruments | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 28,382 | 25,556 |
Consumer | Performing Financial Instruments | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 6 | 1 |
Consumer | Performing Financial Instruments | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 15 | 27 |
Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 38,161 | 20,901 |
Other | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 38,161 | 20,901 |
Other | Performing Financial Instruments | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 38,161 | $ 20,901 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Changes in Allowance for Loan Losses by Loan Classification (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||
Beginning Balance | $ 12,113 | $ 13,721 | $ 11,634 | $ 12,113 | $ 13,721 | $ 11,634 | |||||||
Charged-off loans | (798) | (4,954) | (12,769) | ||||||||||
Recoveries | 528 | 504 | 1,986 | ||||||||||
Provision for loan losses | $ (125) | 886 | $ 1,514 | $ 481 | $ 169 | 678 | $ (30) | $ (195) | $ 9,690 | 3,405 | 761 | 2,842 | 12,870 |
Ending Balance | 12,113 | 13,721 | 12,604 | 12,113 | 13,721 | ||||||||
Commercial real estate | |||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||
Beginning Balance | 3,309 | 3,324 | 2,655 | 3,309 | 3,324 | 2,655 | |||||||
Recoveries | 23 | 22 | 9 | ||||||||||
Provision for loan losses | 267 | (37) | 660 | ||||||||||
Ending Balance | 3,309 | 3,324 | 3,599 | 3,309 | 3,324 | ||||||||
Consumer real estate | |||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||
Beginning Balance | 1,005 | 1,063 | 1,013 | 1,005 | 1,063 | 1,013 | |||||||
Charged-off loans | (39) | ||||||||||||
Recoveries | 20 | 4 | |||||||||||
Provision for loan losses | 245 | (62) | 50 | ||||||||||
Ending Balance | 1,005 | 1,063 | 1,231 | 1,005 | 1,063 | ||||||||
Construction and land development | |||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||
Beginning Balance | 2,431 | 1,628 | 1,574 | 2,431 | 1,628 | 1,574 | |||||||
Provision for loan losses | (373) | 803 | 54 | ||||||||||
Ending Balance | 2,431 | 1,628 | 2,058 | 2,431 | 1,628 | ||||||||
Commercial and industrial | |||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||
Beginning Balance | 5,036 | 7,209 | 5,618 | 5,036 | 7,209 | 5,618 | |||||||
Charged-off loans | (455) | (4,831) | (12,769) | ||||||||||
Recoveries | 380 | 395 | 1,865 | ||||||||||
Provision for loan losses | 113 | 2,263 | 12,495 | ||||||||||
Ending Balance | 5,036 | 7,209 | 5,074 | 5,036 | 7,209 | ||||||||
Consumer | |||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||
Beginning Balance | 105 | 91 | 76 | 105 | 91 | 76 | |||||||
Charged-off loans | (164) | (84) | |||||||||||
Recoveries | 82 | 75 | 112 | ||||||||||
Provision for loan losses | 199 | 23 | (97) | ||||||||||
Ending Balance | 105 | 91 | 222 | 105 | 91 | ||||||||
Other | |||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||
Beginning Balance | $ 227 | $ 406 | $ 698 | 227 | 406 | 698 | |||||||
Charged-off loans | (140) | (39) | |||||||||||
Recoveries | 23 | 8 | |||||||||||
Provision for loan losses | 310 | (148) | (292) | ||||||||||
Ending Balance | $ 227 | $ 406 | $ 420 | $ 227 | $ 406 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Breakdown of Allowance for Loan Losses and Loan Portfolio by Loan Category (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | $ 12,604 | $ 12,113 | ||
Allowance for Loan Losses, Ending Balance | 12,604 | 12,113 | $ 13,721 | $ 11,634 |
Loans: | ||||
Collectively evaluated for impairment | 1,414,903 | 1,425,896 | ||
Individually evaluated for impairment | 3,594 | 2,278 | ||
Acquired with deteriorated credit quality | 1,605 | 1,620 | ||
Total | 1,420,102 | 1,429,794 | ||
Commercial real estate | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 3,599 | 3,309 | ||
Allowance for Loan Losses, Ending Balance | 3,599 | 3,309 | 3,324 | 2,655 |
Loans: | ||||
Collectively evaluated for impairment | 557,282 | 549,055 | ||
Individually evaluated for impairment | 2,507 | 1,278 | ||
Acquired with deteriorated credit quality | 110 | 113 | ||
Total | 559,899 | 550,446 | ||
Consumer real estate | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 1,231 | 1,005 | ||
Allowance for Loan Losses, Ending Balance | 1,231 | 1,005 | 1,063 | 1,013 |
Loans: | ||||
Collectively evaluated for impairment | 255,006 | 252,640 | ||
Individually evaluated for impairment | 483 | 183 | ||
Acquired with deteriorated credit quality | 608 | 739 | ||
Total | 256,097 | 253,562 | ||
Construction and land development | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 2,058 | 2,431 | ||
Allowance for Loan Losses, Ending Balance | 2,058 | 2,431 | 1,628 | 1,574 |
Loans: | ||||
Collectively evaluated for impairment | 142,994 | 174,662 | ||
Individually evaluated for impairment | 112 | |||
Acquired with deteriorated credit quality | 5 | 8 | ||
Total | 143,111 | 174,670 | ||
Commercial and industrial | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 5,074 | 5,036 | ||
Allowance for Loan Losses, Ending Balance | 5,074 | 5,036 | 7,209 | 5,618 |
Loans: | ||||
Collectively evaluated for impairment | 393,057 | 403,054 | ||
Individually evaluated for impairment | 487 | 817 | ||
Acquired with deteriorated credit quality | 864 | 729 | ||
Total | 394,408 | 404,600 | ||
Consumer | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 222 | 105 | ||
Allowance for Loan Losses, Ending Balance | 222 | 105 | 91 | 76 |
Loans: | ||||
Collectively evaluated for impairment | 28,403 | 25,584 | ||
Individually evaluated for impairment | 5 | |||
Acquired with deteriorated credit quality | 18 | 31 | ||
Total | 28,426 | 25,615 | ||
Other | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 420 | 227 | ||
Allowance for Loan Losses, Ending Balance | 420 | 227 | $ 406 | $ 698 |
Loans: | ||||
Collectively evaluated for impairment | 38,161 | 20,901 | ||
Total | $ 38,161 | $ 20,901 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Allocation of ALL with Corresponding Percentage of Loans in Each Category to Total Loans, Net of Deferred Fee (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 12,604 | $ 12,113 | $ 13,721 | $ 11,634 |
Allowance for loan and lease losses, Percentage of total loans | 0.89% | 0.85% | ||
Commercial real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 3,599 | $ 3,309 | 3,324 | 2,655 |
Allowance for loan and lease losses, Percentage of total loans | 0.25% | 0.23% | ||
Consumer real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 1,231 | $ 1,005 | 1,063 | 1,013 |
Allowance for loan and lease losses, Percentage of total loans | 0.09% | 0.07% | ||
Construction and land development | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 2,058 | $ 2,431 | 1,628 | 1,574 |
Allowance for loan and lease losses, Percentage of total loans | 0.14% | 0.17% | ||
Commercial and industrial | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 5,074 | $ 5,036 | 7,209 | 5,618 |
Allowance for loan and lease losses, Percentage of total loans | 0.36% | 0.35% | ||
Consumer | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 222 | $ 105 | 91 | 76 |
Allowance for loan and lease losses, Percentage of total loans | 0.02% | 0.01% | ||
Other | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and lease losses, Amount | $ 420 | $ 227 | $ 406 | $ 698 |
Allowance for loan and lease losses, Percentage of total loans | 0.03% | 0.02% |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Information Related to Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | $ 5,199 | $ 3,898 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 6,294 | 9,403 |
Recorded investment | 5,199 | 3,898 |
Unpaid principal balance | 6,294 | 9,403 |
Commercial real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 2,617 | 1,391 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 2,621 | 1,775 |
Consumer real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 1,091 | 922 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 1,327 | 1,204 |
Construction and land development | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 117 | 8 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 132 | 18 |
Commercial and industrial | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 1,351 | 1,546 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 2,173 | 6,350 |
Consumer | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 23 | 31 |
Impaired loans with no related allowance recorded, Unpaid principal balance | $ 41 | $ 56 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Average Recorded Investment and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Average recorded investment | $ 4,577 | $ 7,041 | $ 1,258 |
Impaired loans with no related allowance recorded, Interest income recognized | 864 | 281 | |
Impaired loans with an allowance recorded, Average recorded investment | 2,077 | ||
Average recorded investment | 4,577 | 7,041 | 3,335 |
Interest income recognized | 864 | 281 | |
Commercial real estate | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Average recorded investment | 2,574 | 1,198 | 1,258 |
Impaired loans with no related allowance recorded, Interest income recognized | 313 | 158 | |
Consumer real estate | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Average recorded investment | 1,037 | 185 | |
Impaired loans with no related allowance recorded, Interest income recognized | 105 | ||
Construction and land development | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Average recorded investment | 119 | 94 | |
Impaired loans with no related allowance recorded, Interest income recognized | 4 | 2 | |
Commercial and industrial | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Average recorded investment | 824 | 5,557 | |
Impaired loans with no related allowance recorded, Interest income recognized | 440 | 121 | |
Impaired loans with an allowance recorded, Average recorded investment | $ 2,077 | ||
Consumer | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with no related allowance recorded, Average recorded investment | 23 | $ 7 | |
Impaired loans with no related allowance recorded, Interest income recognized | $ 2 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Schedule of Aging of Recorded Investment in Past-due Loans, by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 7,624 | $ 1,595 |
Loans Not Past Due | 1,412,478 | 1,428,199 |
Total | 1,420,102 | 1,429,794 |
Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 372 | 527 |
Loans Not Past Due | 559,527 | 549,919 |
Total | 559,899 | 550,446 |
Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 4,759 | 919 |
Loans Not Past Due | 251,338 | 252,643 |
Total | 256,097 | 253,562 |
Construction and land development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 668 | |
Loans Not Past Due | 142,443 | 174,670 |
Total | 143,111 | 174,670 |
Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,725 | 54 |
Loans Not Past Due | 392,683 | 404,546 |
Total | 394,408 | 404,600 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 100 | 95 |
Loans Not Past Due | 28,326 | 25,520 |
Total | 28,426 | 25,615 |
Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 38,161 | 20,901 |
Total | 38,161 | 20,901 |
30 - 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 6,011 | 475 |
30 - 59 Days Past Due | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 372 | 300 |
30 - 59 Days Past Due | Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 3,642 | 69 |
30 - 59 Days Past Due | Construction and land development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 653 | |
30 - 59 Days Past Due | Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,277 | 54 |
30 - 59 Days Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 67 | 52 |
60 - 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 497 | 302 |
60 - 89 Days Past Due | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 227 | |
60 - 89 Days Past Due | Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 474 | 75 |
60 - 89 Days Past Due | Construction and land development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 15 | |
60 - 89 Days Past Due | Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 8 | |
Greater than 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,116 | 818 |
Greater than 89 Days Past Due | Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 643 | 775 |
Greater than 89 Days Past Due | Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 440 | |
Greater than 89 Days Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 33 | $ 43 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Schedule of Non-Accrual Loans, Past Due Loans over 89 Days and Accruing and Troubled Debt Restructurings by Class of Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | $ 1,464 | $ 2,078 |
Past Due Over 89 Days and Accruing | 38 | 214 |
Troubled Debt Restructurings | 2,717 | 1,391 |
Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings | 2,446 | 1,391 |
Consumer real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 894 | 1,187 |
Past Due Over 89 Days and Accruing | 12 | 214 |
Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 117 | 19 |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 440 | 817 |
Troubled Debt Restructurings | 271 | |
Consumer | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 13 | $ 55 |
Past Due Over 89 Days and Accruing | $ 26 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Schedule of Loans by Class Modified as TDR (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Contract | Dec. 31, 2018Contract | Dec. 31, 2017Contract | |
Financing Receivable Modifications [Line Items] | |||
Number of contracts | Contract | 2 | 0 | 0 |
Pre modification outstanding recorded investment | $ 1,499 | ||
Post modification outstanding recorded investment, net of related allowance | $ 1,499 | ||
Commercial real estate | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | Contract | 1 | ||
Pre modification outstanding recorded investment | $ 1,228 | ||
Post modification outstanding recorded investment, net of related allowance | $ 1,228 | ||
Commercial and industrial | |||
Financing Receivable Modifications [Line Items] | |||
Number of contracts | Contract | 1 | ||
Pre modification outstanding recorded investment | $ 271 | ||
Post modification outstanding recorded investment, net of related allowance | $ 271 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Summary of the contractually required payments (Details) - Athens Bancshares $ in Thousands | Oct. 01, 2018USD ($) |
Purchased Credit Impaired | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield Movement Schedule [Line Items] | |
Contractually required payments | $ 3,151 |
Nonaccretable difference | (1,049) |
Cash flows expected to be collected at acquisition | 2,102 |
Accretable yield | (436) |
Fair value of PCI loans at acquisition date | 1,666 |
Purchased Non Impaired [Member] | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield Movement Schedule [Line Items] | |
Contractually required payments | 404,692 |
Fair value of PCI loans at acquisition date | 343,167 |
Contractual cash flows not expected to be collected | $ 1,807 |
Loans and Allowance for Loan_15
Loans and Allowance for Loan Losses - Schedule of activity in purchased credit impaired loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield Movement Schedule [Line Items] | |
Balance, beginning , carrying value | $ 1,620 |
Change due to payments received and accretion | (15) |
Balance, ending, carrying value | 1,605 |
Accretable Yield For PCI Loans | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield Movement Schedule [Line Items] | |
Balance, beginning , carrying value | 440 |
Accretion | (570) |
Reclassification from (to) nonaccretable difference | 1,045 |
Balance, ending, carrying value | $ 915 |
Loans and Allowance for Loan_16
Loans and Allowance for Loan Losses - Schedule of Components of Direct Financing Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Total minimum lease payments receivable | $ 59 | $ 379 |
Less: Unearned income | (1) | (19) |
Net leases | $ 58 | $ 360 |
Loans and Allowance for Loan_17
Loans and Allowance for Loan Losses - Summary of Future Minimum Lease Payments Receivable under Direct Financing Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 58 |
Future minimum lease payments receivable | $ 58 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Transfers And Servicing [Abstract] | ||
Loan principal balance | $ 196,900,000 | $ 170,100,000 |
Custodial escrow balances maintained In connection with serviced loans | $ 324,000 | $ 462,000 |
Loan Servicing - Schedule of Ac
Loan Servicing - Schedule of Activity for Loan Servicing Rights and Related Valuation Allowance (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Loan servicing rights: | |
Balance at beginning of period | $ 1,736 |
Additions | 381 |
Amortized to offset other noninterest income | (362) |
Change in valuation allowance | (211) |
Balance at end of period | 1,544 |
Valuation allowance: | |
Direct write-downs | (211) |
Balance at end of period | $ (211) |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 23,206 | $ 21,654 |
Less accumulated depreciation and amortization | (4,022) | (2,833) |
Premises and equipment, net | $ 19,184 | 18,821 |
Minimum | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 1 year | |
Maximum | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 39 years | |
Buildings | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 39 years | |
Premises and equipment, gross | $ 13,331 | 9,965 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 939 | 939 |
Leasehold improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 1 year | |
Leasehold improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 17 years | |
Furniture and equipment | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 4,633 | 3,730 |
Furniture and equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 1 year | |
Furniture and equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, useful lives | 7 years | |
Land | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 4,303 | 2,997 |
Fixed Assets In Process | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 4,023 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |||
Premises and equipment depreciation and amortization expense | $ 1,219,000 | $ 516,000 | $ 401,000 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Leases [Abstract] | |||
Operating lease, expiration year | 2032 | ||
Operating lease, liability | $ 12,451,000 | $ 13,400,000 | $ 13,400,000 |
Operating lease, right-of-use asset | $ 11,700,000 | 12,800,000 | $ 12,800,000 |
Operating lease, weighted average remaining lease term | 10 years 8 months 12 days | ||
Operating lease, weighted average discount rate, percent | 3.52% | ||
Operating leases, rent expense | $ 1,677,000 | ||
Sale and leaseback transaction | $ 0 | $ 0 |
Leases - Summary of Lease Costs
Leases - Summary of Lease Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 1,868 |
Total lease cost | $ 1,868 |
Leases - Maturity Analysis of O
Leases - Maturity Analysis of Operating Lease Liabilities and Reconciliation of Undiscounted Cash Flows (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Lease payments due: | |||
2020 | $ 1,562 | ||
2021 | 1,590 | ||
2022 | 1,476 | ||
2023 | 1,425 | ||
2024 | 1,130 | ||
2025 and thereafter | 7,710 | ||
Total undiscounted cash flows | 14,893 | ||
Discount on cash flows | (2,442) | ||
Operating lease, liability | $ 12,451 | $ 13,400 | $ 13,400 |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets - Summary of Change In Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning of year | $ 37,510 | $ 6,219 |
Acquired goodwill | 0 | 31,291 |
Impairment | 0 | 0 |
End of year | $ 37,510 | $ 37,510 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets - Summary of Acquired Intangible Assets (Details) - Core Deposit - USD ($) $ in Thousands | Mar. 03, 2020 | Dec. 31, 2018 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 9,267 | $ 9,267 |
Accumulated Amortization | $ (2,384) | $ (729) |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Aggregate amortization expense | $ 1,655,000 | $ 465,000 | $ 48,000 |
Goodwill And Intangible Asset_5
Goodwill And Intangible Assets - Summary of Estimated Amortization Expense (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2020 | $ 1,477 |
2021 | 1,299 |
2022 | 1,121 |
2023 | 943 |
2024 | 764 |
Thereafter | 1,279 |
Total | $ 6,883 |
Other Real Estate Owned - Summa
Other Real Estate Owned - Summary of Other Real Estate Owned Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Real Estate Roll Forward | |||
Beginning balance | $ 988 | $ 0 | $ 0 |
Additions due to acquisition of Athens Bancshares | 0 | 988 | 0 |
Loans transferred to other real estate owned | 180 | 0 | 0 |
Direct write-downs | 0 | 0 | 0 |
Sales of other real estate owned | (124) | 0 | 0 |
End of year | $ 1,044 | $ 988 | $ 0 |
Other Real Estate Owned - Addit
Other Real Estate Owned - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Real Estate Roll Forward | |||
Valuation allowance allocated to properties | $ 0 | $ 0 | $ 0 |
Other Real Estate Owned - Sum_2
Other Real Estate Owned - Summary of Expenses Related to Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Real Estate [Abstract] | |||
Net (gain) loss on sales | $ (3) | $ 0 | $ 0 |
Provision for unrealized losses | 0 | 0 | 0 |
Operating expenses, net of rental income | 0 | 0 | 0 |
Total | $ (3) | $ 0 | $ 0 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
FDIC deposit insurance limit | $ 250,000 | $ 250,000 |
Time deposits | 53,481,000 | 98,086,000 |
Deposit accounts in overdraft status reclassified to loans | $ 148,000 | $ 193,000 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Maturities Of Time Deposits [Abstract] | ||
2020 | $ 222,163 | |
2021 | 53,077 | |
2022 | 16,255 | |
2023 | 8,369 | |
2024 | 2,975 | |
Thereafter | 613 | |
Total | $ 303,452 | $ 348,427 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank Advances [Line Items] | ||
Outstanding borrowings | $ 10,000,000 | $ 125,000,000 |
Investment securities, FHLB stock and commercial and residential real estate mortgage loans | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal Home Loan Bank Advances Collateralized Investment Securities Value | 4,100,000 | |
Mortgage loans collateralized amount | 683,100,000 | |
Amount of available credit | $ 201,400,000 |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances - Summary of Contractual Maturities and Average Effective Rates of Outstanding Advances (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank Advances Maturities Summary [Abstract] | ||
2019 | $ 125,000,000 | |
2020 | $ 10,000,000 | |
Total amount | $ 10,000,000 | $ 125,000,000 |
2019 | 2.48% | |
2020 | 2.05% | |
Total interest rates | 2.05% | 2.48% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes In Accumulated Other Comprehensive Income (Loss) By Component, Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ 254,379 | $ 146,946 | $ 139,207 |
Other comprehensive income (loss) before reclassification, net of tax | 5,641 | 67 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (942) | (856) | |
Other comprehensive income (loss) | 4,699 | (789) | 3,883 |
Ending balance | 273,046 | 254,379 | 146,946 |
Gains and Losses on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (2,636) | (3,679) | |
Other comprehensive income (loss) before reclassification, net of tax | 826 | 1,891 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (869) | (848) | |
Other comprehensive income (loss) | (43) | 1,043 | |
Ending balance | (2,679) | (2,636) | (3,679) |
Unrealized Gains and Losses on Available for Sale Securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (680) | 1,162 | |
Other comprehensive income (loss) before reclassification, net of tax | 4,815 | (1,844) | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (73) | 2 | |
Other comprehensive income (loss) | 4,742 | (1,842) | |
Ending balance | 4,062 | (680) | 1,162 |
Unrealized Losses on Securities Transferred to Held to Maturity | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (10) | ||
Other comprehensive income (loss) before reclassification, net of tax | 20 | ||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (10) | ||
Other comprehensive income (loss) | 10 | ||
Ending balance | (10) | ||
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (3,316) | (2,527) | (6,151) |
Other comprehensive income (loss) | 4,699 | (789) | 3,883 |
Ending balance | $ 1,383 | $ (3,316) | $ (2,527) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Summary of Significant Amounts Reclassified out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||||||
Net gain (loss) on sale of securities | $ (99) | $ 3 | $ (66) | ||||||||||||
Interest expense - Federal Home Loan Bank advances | (1,444) | (2,533) | (1,559) | ||||||||||||
Income tax (expense) benefit | $ (1,613) | $ (2,072) | $ (1,814) | $ (1,346) | $ 535 | $ (554) | $ (665) | $ (483) | $ (4,494) | $ (1,516) | $ 1,328 | $ 47 | (6,844) | (1,167) | (4,635) |
Net income | $ 5,421 | $ 6,466 | $ 5,756 | $ 4,780 | $ (708) | $ 3,656 | $ 3,513 | $ 3,193 | $ 91 | $ 4,419 | $ (3,342) | $ 331 | 22,422 | 9,655 | 1,501 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Losses on Cash Flow Hedges | |||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||||||
Interest expense money market | (635) | (441) | (430) | ||||||||||||
Interest expense - Federal Home Loan Bank advances | (243) | (479) | (429) | ||||||||||||
Income tax (expense) benefit | 9 | 72 | 89 | ||||||||||||
Net income | (869) | (848) | (770) | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and (Losses) on Available for Sale Securities | |||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||||||
Net gain (loss) on sale of securities | (99) | 3 | (66) | ||||||||||||
Income tax (expense) benefit | 26 | (1) | 25 | ||||||||||||
Net income | $ (73) | 2 | (41) | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Losses on Securities Transferred to Held to Maturity | |||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||||||
Interest income - securities | (14) | (190) | |||||||||||||
Income tax (expense) benefit | 4 | 73 | |||||||||||||
Net income | $ (10) | $ (117) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||||||||||||||
Federal | $ 3,215 | $ 15 | $ 214 | ||||||||||||
State | 1,044 | (23) | 36 | ||||||||||||
Total Current tax expense (Benefit) | 4,259 | (8) | 250 | ||||||||||||
Deferred: | |||||||||||||||
Federal | 2,039 | 872 | 4,218 | ||||||||||||
State | 546 | 303 | 167 | ||||||||||||
Total deferred tax expense (Benefit) | 2,585 | 1,175 | 4,385 | ||||||||||||
Total | $ 1,613 | $ 2,072 | $ 1,814 | $ 1,346 | $ (535) | $ 554 | $ 665 | $ 483 | $ 4,494 | $ 1,516 | $ (1,328) | $ (47) | $ 6,844 | $ 1,167 | $ 4,635 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
Decrease in net deferred tax assets due to tax reforms | $ 3,562,000 | ||
Increase in income tax expense due to tax reforms | $ 3,600,000 | ||
Unrecognized income tax benefits | $ 0 | $ 0 | |
Accrued interest related to uncertain tax positions | 0 | 0 | |
Accrued penalties related to uncertain tax positions | 0 | $ 0 | |
Federal | |||
Income Taxes [Line Items] | |||
Federal net operating loss carryforwards | $ 3,011,000 | ||
Federal net operating loss carryforwards, start year | 2030 | ||
Federal net operating loss carryforwards, end year | 2032 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Actual Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||||||
Computed "expected" tax expense | $ 6,146 | $ 2,272 | $ 2,086 | ||||||||||||
State income taxes, net of effect of federal income taxes | 1,256 | 221 | 134 | ||||||||||||
Tax-exempt interest income | (302) | (298) | (418) | ||||||||||||
Earnings on bank owned life insurance contracts | (173) | (559) | (197) | ||||||||||||
Disallowed expenses | 84 | 93 | 86 | ||||||||||||
Excess tax benefits related to stock compensation | (57) | (857) | (632) | ||||||||||||
Write-down of deferred tax assets due to tax reform | 3,562 | ||||||||||||||
Nondeductible merger expenses | 281 | ||||||||||||||
Other | (110) | 14 | 14 | ||||||||||||
Total | $ 1,613 | $ 2,072 | $ 1,814 | $ 1,346 | $ (535) | $ 554 | $ 665 | $ 483 | $ 4,494 | $ 1,516 | $ (1,328) | $ (47) | $ 6,844 | $ 1,167 | $ 4,635 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,935 | $ 2,795 |
Net operating loss carryforward | 738 | 2,002 |
Organization and preopening costs | 359 | 457 |
Stock-based compensation | 200 | 835 |
Acquired loans | 871 | 1,319 |
Unrealized loss on securities available-for-sale | 845 | |
Accrued contributions | 247 | 207 |
Other | 189 | 685 |
Deferred tax assets | 5,539 | 9,145 |
Deferred tax liabilities: | ||
Depreciation | 804 | 645 |
Goodwill | 154 | 81 |
Unrealized gain on securities available-for-sale | 833 | |
Amortization of core deposit intangible | 1,052 | 1,398 |
Other | 568 | 411 |
Deferred tax liabilities | 3,411 | 2,535 |
Net deferred tax asset | $ 2,128 | $ 6,610 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Financial Instruments Representing Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments And Contingencies Disclosure [Abstract] | ||
Unused commitments to extend credit | $ 672,933 | $ 707,675 |
Standby letters of credit | 9,634 | 12,273 |
Total | $ 682,567 | $ 719,948 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Concentration Risk [Line Items] | ||
Cash due from banks, federal funds sold and interest bearing deposits | $ 101,269,000 | $ 105,443,000 |
Excess Of Insured Limits | ||
Concentration Risk [Line Items] | ||
Cash due from banks, federal funds sold and interest bearing deposits | $ 86,000,000 | $ 89,000,000 |
Regulatory Matters And Restri_3
Regulatory Matters And Restrictions On Dividends - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)Capital | Dec. 31, 2018USD ($) | |
Banking And Thrift [Abstract] | ||
Number of capital categories | Capital | 5 | |
Dividends | $ 35.8 | $ 22.2 |
Dividends paid | $ 3.5 |
Regulatory Matters And Restri_4
Regulatory Matters And Restrictions On Dividends - Schedule of Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
CapStar Financial Holdings, Inc. | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital to risk-weighted assets, actual amount | $ 237,857 | $ 222,030 | |
Tier I capital to risk-weighted assets, actual amount | 225,074 | 209,738 | |
Tier I capital to average assets, actual amount | $ 225,074 | $ 209,738 | |
Total capital to risk-weighted assets, actual ratio | 13.45% | 12.84% | |
Tier I capital to risk-weighted assets, actual ratio | 12.73% | 12.13% | |
Tier I capital to average assets, actual ratio | 11.37% | 11.06% | |
Total capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 141,436 | $ 138,336 |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | 106,077 | 103,752 |
Tier I capital to average assets, minimum capital requirement amount | [1] | $ 79,201 | $ 75,867 |
Total capital to risk-weighted assets, minimum capital requirement ratio | [1] | 8.00% | 8.00% |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 6.00% | 6.00% |
Tier I capital to average assets, minimum capital requirement ratio | [1] | 4.00% | 4.00% |
CapStar Financial Holdings, Inc. | Common Stock | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier I capital to risk-weighted assets, actual amount | $ 225,074 | $ 200,738 | |
Tier I capital to risk-weighted assets, actual ratio | 12.73% | 11.61% | |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 79,558 | $ 77,814 |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 4.50% | 4.50% |
CapStar Bank | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital to risk-weighted assets, actual amount | $ 224,443 | $ 201,972 | |
Tier I capital to risk-weighted assets, actual amount | 211,660 | 189,680 | |
Tier I capital to average assets, actual amount | $ 211,660 | $ 189,680 | |
Total capital to risk-weighted assets, actual ratio | 12.70% | 11.68% | |
Tier I capital to risk-weighted assets, actual ratio | 11.98% | 10.97% | |
Tier I capital to average assets, actual ratio | 10.70% | 10.01% | |
Total capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 141,388 | $ 138,294 |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | 106,041 | 103,721 |
Tier I capital to average assets, minimum capital requirement amount | [1] | $ 79,150 | $ 75,828 |
Total capital to risk-weighted assets, minimum capital requirement ratio | [1] | 8.00% | 8.00% |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 6.00% | 6.00% |
Tier I capital to average assets, minimum capital requirement ratio | [1] | 4.00% | 4.00% |
Total capital to risk-weighted assets, minimum to be well capitalized amount | [2] | $ 176,735 | $ 172,868 |
Tier I capital to risk-weighted assets, minimum to be well capitalized amount | [2] | 141,388 | 138,294 |
Tier I capital to average assets, minimum to be well capitalized amount | [2] | $ 98,938 | $ 94,785 |
Total capital to risk-weighted assets, minimum to be well capitalized ratio | [2] | 10.00% | 10.00% |
Tier I capital to risk-weighted assets, minimum to be well capitalized ratio | [2] | 8.00% | 8.00% |
Tier I capital to average assets, minimum to be well capitalized ratio | [2] | 5.00% | 5.00% |
CapStar Bank | Common Stock | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier I capital to risk-weighted assets, actual amount | $ 195,160 | $ 173,180 | |
Tier I capital to risk-weighted assets, actual ratio | 11.04% | 10.02% | |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 79,531 | $ 77,791 |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 4.50% | 4.50% |
Tier I capital to risk-weighted assets, minimum to be well capitalized amount | [2] | $ 114,878 | $ 112,364 |
Tier I capital to risk-weighted assets, minimum to be well capitalized ratio | [2] | 6.50% | 6.50% |
[1] | For the calendar year 2019, the Company was required to maintain a capital conservation buffer of Tier 1 common equity capital in excess of minimum risk-based capital ratios by at least 1.875% to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. | ||
[2] | For the Company to be well-capitalized, the Bank must be well-capitalized and the Company must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve to meet and maintain a specific capital level for any capital measure. |
Regulatory Matters And Restri_5
Regulatory Matters And Restrictions On Dividends - Schedule of Capital Amounts and Ratios (Parenthetical) (Details) | Dec. 31, 2019 |
Banking And Thrift [Abstract] | |
Minimum risk based capital ratios | 1.875% |
Nonvoting and Series A Prefer_2
Nonvoting and Series A Preferred Stock and Stock Warrants - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | Jul. 14, 2008 | |
Class Of Stock [Line Items] | ||||
Preferred stock, shares issued | 0 | 878,048 | ||
Preferred stock, shares outstanding | 0 | 878,048 | ||
Expire period | 10 years | |||
Warrants grant date | Jul. 14, 2008 | |||
Warrants outstanding | 0 | |||
Investor | ||||
Class Of Stock [Line Items] | ||||
Warrants issued to purchase common stock | 238,319 | |||
Purchase price of share | $ 10 | |||
Expire period | 10 years | |||
Warrants grant date | Jul. 14, 2008 | |||
Warrants outstanding | 0 | |||
Share issuance descriptions | Each subscriber for shares who is a Tennessee resident or any entity controlled by a Tennessee resident and invested a minimum of $500,000 in the offering, received a warrant to purchase additional shares of common stock equal to 5% of accepted subscriptions at the purchase price of $10.00 per share. | |||
Accepted percentage of subscription on purchase price | 5.00% | |||
Investor | Minimum | ||||
Class Of Stock [Line Items] | ||||
Common stock subscription, value | $ 500,000,000 | |||
Director | ||||
Class Of Stock [Line Items] | ||||
Warrants issued to purchase common stock | 10,000 | |||
Warrants purchase price | $ 10 | |||
Organizer | ||||
Class Of Stock [Line Items] | ||||
Warrants issued to purchase common stock | 60,000 | |||
Expire period | 10 years | |||
Warrants grant date | Jul. 14, 2008 | |||
Warrants outstanding | 0 | |||
Common Stock | ||||
Class Of Stock [Line Items] | ||||
Preferred shares converted to common stock | 878,048 | |||
Initial Public Offering | Common Stock | ||||
Class Of Stock [Line Items] | ||||
Preferred shares converted to common stock | 731,707 | |||
Nonvoting | ||||
Class Of Stock [Line Items] | ||||
Common stock, shares authorized | 5,000,000 | 5,000,000 | ||
Common stock, conversion basis | one-to-one basis | |||
Stock issued and converted to common stock | 132,561 | |||
Common stock, shares outstanding | 0 | 132,561 | ||
Warrants issued to purchase common stock | 500,000 | |||
Purchase price of share | $ 10.25 | |||
Nonvoting | Initial Public Offering | ||||
Class Of Stock [Line Items] | ||||
Stock issued and converted to common stock | 79,166 | |||
Series A Preferred Stock | ||||
Class Of Stock [Line Items] | ||||
Preferred stock, shares issued | 1,609,756 | |||
Preferred stock, shares outstanding | 0 |
Shareholders' Agreement - Addit
Shareholders' Agreement - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019Nomineeshares | Dec. 21, 2018shares | |
Share Based Compensation [Abstract] | ||
Shareholders' agreement date | Aug. 22, 2016 | |
Number of nominee | Nominee | 1 | |
Registrable securities | 500,000 | |
Number of additional shares registered | 3,652,094 |
Stock Options and Restricted _3
Stock Options and Restricted Shares - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total unrecognized compensation cost | $ 1,564,000 | ||
Total fair value of shares vested | $ 1,352,000 | $ 2,804,000 | $ 1,174,000 |
Vesting period | 3 years | ||
Contractual term | 10 years | ||
Options granted | 50,000 | 0 | |
Total unrecognized compensation cost | $ 216,000 | ||
Restricted Shares | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cost expected to be recognized over a weighted-average period | 1 year 7 months 6 days | ||
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cost expected to be recognized over a weighted-average period | 2 years 4 months 24 days | ||
CapStar Bank 2008 Stock Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares of stock reserved for issuance of stock incentives | 1,569,475 | ||
Shares issuable under both restricted share and stock option grants | 362,757 | ||
CapStar Bank 2008 Stock Incentive Plan | Board of Directors | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares of stock reserved for issuance of stock incentives | 400,000 |
Stock Options and Restricted _4
Stock Options and Restricted Shares - Summary of Company Recognized Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Stock-based compensation expense before income taxes | $ 1,262 | $ 2,079 | $ 1,061 |
Less: deferred tax benefit | (330) | (543) | (406) |
Reduction of net income | $ 932 | $ 1,536 | $ 655 |
Stock Options and Restricted _5
Stock Options and Restricted Shares - Summary of Changes in Company's Nonvested Restricted Shares (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Restricted Shares, Abstract | |
Restricted Shares, Nonvested Beginning Balance | shares | 157,616 |
Restricted Shares, Granted | shares | 31,683 |
Restricted Shares, Vested | shares | (83,062) |
Restricted Shares, Forfeited | shares | (21,540) |
Restricted Shares, Nonvested Ending Balance | shares | 84,697 |
Weighted Average Grant Date Fair Value, Abstract | |
Weighted Average Grant Date Fair Value, Nonvested Beginning Balance | $ / shares | $ 17 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 15.86 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 15.93 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 17.72 |
Weighted Average Grant Date Fair Value, Nonvested Ending Balance | $ / shares | $ 17.44 |
Stock Options and Restricted _6
Stock Options and Restricted Shares - Summary of Fair Value of Options Granted Using Weighted Average Assumptions (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Dividend yield | 1.35% |
Expected term (in years) | 6 years 6 months |
Expected stock price volatility | 29.55% |
Risk-free interest rate | 2.25% |
Stock Options and Restricted _7
Stock Options and Restricted Shares - Summary of Activity in Stock Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Shares, Abstract | ||
Shares Outstanding, Beginning Balance | 507,903 | |
Shares Outstanding, Granted | 50,000 | 0 |
Shares Outstanding, Exercised | (286,701) | |
Shares Outstanding, Ending Balance | 271,202 | 507,903 |
Shares, Fully Vested and Expected to Vest | 271,086 | |
Shares, Exercisable at End of Period | 214,952 | |
Weighted Average Exercise Price, Abstract | ||
Weighted Average Exercise Price Outstanding, Beginning Balance | $ 8.66 | |
Weighted Average Exercise Price Outstanding, Granted | 14.84 | |
Weighted Average Exercise Price Outstanding, Exercised | 7.33 | |
Weighted Average Exercise Price Outstanding, Ending Balance | 11.22 | $ 8.66 |
Weighted Average Exercise Price, Fully vested and expected to vest | 11.22 | |
Weighted Average Exercise Price, Exercisable at End of Period | $ 10.32 | |
Weighted Average Remaining Contractual Term (year), Abstract | ||
Weighted Average Remaining Contractual Term Outstanding | 4 years 10 months 24 days | |
Weighted Average Remaining Contractual Term, Fully Vested and Expected to Vest | 4 years 10 months 24 days | |
Weighted Average Remaining Contractual Term, Exercisable at End of Period | 3 years 9 months 18 days |
Stock Options and Restricted _8
Stock Options and Restricted Shares - Information Related to Stock Options (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Intrinsic value of options exercised | $ 2,478,086 | $ 7,654,738 | $ 2,010,536 |
Cash received from option exercises | 1,930,737 | 6,897,845 | 2,013,840 |
Tax benefit realized from option exercises | $ 103,847 | $ 846,725 | $ 774,056 |
Weighted average fair value of options granted | $ 5.35 |
Employee Benefit Plans- Additio
Employee Benefit Plans- Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Annual contribution percentage | 3.00% | ||
Additional discretionary contribution of employees' salary percentage | 6.00% | ||
Company's contribution to 401(k) Plan | $ 874,000 | $ 639,000 | $ 550,000 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - Designated as Hedging Instrument - Interest Rate Swaps - Cash Flow Hedges - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments [Line Items] | |||
Notional amount | $ 0 | $ 20,000,000 | |
Derivative termination fees | 1,500,000 | ||
Investment securities pledged collateral to counterparties | 2,038,000 | ||
Investment securities pledged collateral from counterparties | $ 0 | ||
Gains (losses) relating to mortgage banking derivative instruments | $ 0 | $ 0 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Interest-Rate Swaps Designated as Cash Flow Hedges (Details) - Designated as Hedging Instrument - Cash Flow Hedges - Interest Rate Swaps - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | |
Derivative Instruments [Line Items] | ||
Notional amounts | $ 20,000,000 | $ 0 |
Weighted average pay rates | 3.54% | |
Weighted average receive rates | 3 month LIBOR | |
Weighted average maturity | 4 years 6 months | |
Fair value | $ (836,000) | |
Amount of unrealized loss recognized in accumulated other comprehensive income, net of tax | $ (617,000) |
Derivative Instruments - Summ_2
Derivative Instruments - Summary of Customer Related Interest Rate Swaps (Details) - Interest Rate Swaps - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments [Line Items] | ||
Interest rate swap, Notional amount | $ 90,106,000 | $ 58,252,000 |
Pay fixed/receive variable swaps | ||
Derivative Instruments [Line Items] | ||
Interest rate swap, Notional amount | 45,053,000 | 29,126,000 |
Interest rate swap, Estimated fair value | (926,000) | 24,000 |
Pay variable/receive fixed swaps | ||
Derivative Instruments [Line Items] | ||
Interest rate swap, Notional amount | 45,053,000 | 29,126,000 |
Interest rate swap, Estimated fair value | $ 926,000 | $ (24,000) |
Derivative Instruments - Summ_3
Derivative Instruments - Summary of Net Gains (Losses) Relating to Mortgage Banking Derivative Instruments Included in Mortgage Banking Income (Details) - Mortgage Banking Derivative Instruments $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Derivative Instruments [Line Items] | |
Net gains (losses) relating to mortgage banking derivative instruments | $ 500 |
Mortgage Loan Interest Rate Lock Commitments | |
Derivative Instruments [Line Items] | |
Net gains (losses) relating to mortgage banking derivative instruments | 648 |
Mortgage-Backed Securities Forward Sales Commitments | |
Derivative Instruments [Line Items] | |
Net gains (losses) relating to mortgage banking derivative instruments | $ (148) |
Derivative Instruments - Summ_4
Derivative Instruments - Summary of Amount and Fair Value of Mortgage Banking Derivative Instruments Included in Consolidated Balance Sheets (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Other Assets | Mortgage Loan Interest Rate Lock Commitments | |
Derivative Instruments [Line Items] | |
Notional amount, assets | $ 44,694 |
Estimated fair value, asset | 648 |
Other Liabilities | Mortgage-Backed Securities Forward Sales Commitments | |
Derivative Instruments [Line Items] | |
Notional amount, liabilities | 38,500 |
Estimated fair value, liabilities | $ 148 |
Related Party - Additional Info
Related Party - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Impairment of loans | $ 0 | $ 0 |
Directors Executive Officers, Shareholders and Affiliates | ||
Related Party Transaction [Line Items] | ||
Deposit from related parties | $ 13,700,000 | $ 11,400,000 |
Related Party - Schedule of Rel
Related Party - Schedule of Related Party Transactions Activity within Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Total Commitment | ||
Related Party Transaction [Line Items] | ||
Beginning of period | $ 44,812 | $ 49,409 |
New commitments/draw downs | 9,336 | 3,631 |
Repayments | (32,333) | (8,228) |
End of period | 21,815 | 44,812 |
Total Funded Commitment | ||
Related Party Transaction [Line Items] | ||
Beginning of period | 15,445 | 21,890 |
New commitments/draw downs | 2,515 | 1,038 |
Repayments | (7,287) | (7,483) |
End of period | $ 10,673 | $ 15,445 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 0 | $ 0 |
Loans held for sale carried at fair value | 30,740,000 | 0 |
Fair Value, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | $ 0 | $ 0 |
Fair Value - Summary of Assets
Fair Value - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Securities available-for-sale, at fair value | $ 213,129,000 | $ 243,808,000 |
Loans held for sale carried at fair value | 30,740,000 | 0 |
Obligations of States and Political Subdivisions | ||
Assets: | ||
Securities available-for-sale, at fair value | 45,960,000 | 61,926,000 |
Asset-backed securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 3,197,000 | 15,284,000 |
Other debt securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 14,962,000 | 11,734,000 |
Significant Unobservable Inputs (Level 3) | Mortgage Loan Interest Rate Lock Commitments | Non-hedging derivatives | ||
Derivative assets: | ||
Residential mortgage loans held for sale | 648,000 | |
Fair Value Measurements Recurring Basis | ||
Assets: | ||
Loans held for sale carried at fair value | 168,222,000 | |
Fair Value Measurements Recurring Basis | U.S. Government-sponsored Agencies | ||
Assets: | ||
Securities available-for-sale, at fair value | 10,331,000 | 10,706,000 |
Fair Value Measurements Recurring Basis | Obligations of States and Political Subdivisions | ||
Assets: | ||
Securities available-for-sale, at fair value | 45,960,000 | 61,926,000 |
Fair Value Measurements Recurring Basis | Mortgage-backed Securities-residential | ||
Assets: | ||
Securities available-for-sale, at fair value | 138,679,000 | 144,158,000 |
Fair Value Measurements Recurring Basis | Asset-backed securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 3,197,000 | 15,284,000 |
Fair Value Measurements Recurring Basis | Other debt securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 14,962,000 | 11,734,000 |
Fair Value Measurements Recurring Basis | Mortgage Loan Interest Rate Lock Commitments | Non-hedging derivatives | ||
Derivative assets: | ||
Residential mortgage loans held for sale | 648,000 | |
Fair Value Measurements Recurring Basis | Forward Sales Commitments | Non-hedging derivatives | ||
Derivative liabilities: | ||
Mortgage-backed securities forward sales commitments | (148,000) | |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Loans held for sale carried at fair value | 168,222,000 | |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored Agencies | ||
Assets: | ||
Securities available-for-sale, at fair value | 10,331,000 | 10,706,000 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Obligations of States and Political Subdivisions | ||
Assets: | ||
Securities available-for-sale, at fair value | 45,960,000 | 61,926,000 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed Securities-residential | ||
Assets: | ||
Securities available-for-sale, at fair value | 138,679,000 | 144,158,000 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 3,197,000 | 15,284,000 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Other debt securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 14,962,000 | 11,734,000 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Forward Sales Commitments | Non-hedging derivatives | ||
Derivative liabilities: | ||
Mortgage-backed securities forward sales commitments | (148,000) | |
Fair Value Measurements Recurring Basis | Significant Unobservable Inputs (Level 3) | Mortgage Loan Interest Rate Lock Commitments | Non-hedging derivatives | ||
Derivative assets: | ||
Residential mortgage loans held for sale | 648,000 | |
Fair Value Measurements Recurring Basis | Interest Rate Swaps - Customer Related | Non-hedging derivatives | ||
Derivative assets: | ||
Interest rate swaps - customer related | 926,000 | 494,000 |
Derivative liabilities: | ||
Total derivative liabilities | (926,000) | (494,000) |
Fair Value Measurements Recurring Basis | Interest Rate Swaps - Customer Related | Significant Other Observable Inputs (Level 2) | Non-hedging derivatives | ||
Derivative assets: | ||
Interest rate swaps - customer related | 926,000 | 494,000 |
Derivative liabilities: | ||
Total derivative liabilities | $ (926,000) | (494,000) |
Fair Value Measurements Recurring Basis | Interest Rate Swaps - Cash Flow Hedges | ||
Derivative liabilities: | ||
Total derivative liabilities | (836,000) | |
Fair Value Measurements Recurring Basis | Interest Rate Swaps - Cash Flow Hedges | Significant Other Observable Inputs (Level 2) | ||
Derivative liabilities: | ||
Total derivative liabilities | $ (836,000) |
Fair Value - Reconciliation of
Fair Value - Reconciliation of Assets Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3) (Details) - Mortgage Loan Interest Rate Lock Commitments - Significant Unobservable Inputs (Level 3) - Fair Value Measurements Recurring Basis $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Included in mortgage banking income | $ 648 |
Balance of recurring Level 3 assets at December 31st | $ 648 |
Fair Value - Summary of Quantit
Fair Value - Summary of Quantitative Information About Level 3 Fair Value Measurements on Recurring Basis (Details) - Significant Unobservable Inputs (Level 3) - Mortgage Loan Interest Rate Lock Commitments - Non-hedging derivatives $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Residential mortgage loans held for sale | $ 648 |
Valuation Technique(s) | Consensus pricing |
Unobservable Input(s) | Origination pull-through rate |
Minimum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable inputs range | 0.0068 |
Maximum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable inputs range | 0.0095 |
Weighted Average | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable inputs range | 0.0083 |
Fair Value - Summary of Carryin
Fair Value - Summary of Carrying Value and Fair Values of the Company's Financial Instruments (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 01, 2018 |
Financial assets: | |||
Securities available-for-sale | $ 213,129,000 | $ 243,808,000 | |
Securities held to maturity, fair value | 3,411,000 | 3,785,000 | |
Loans held for sale carried at fair value | 30,740,000 | 0 | |
Loans | $ 344,800,000 | ||
Carrying amount | |||
Financial assets: | |||
Cash and due from banks, interest-bearing deposits in financial institutions | 101,094,000 | 94,681,000 | |
Federal funds sold | 175,000 | 10,762,000 | |
Securities available-for-sale | 213,129,000 | 243,808,000 | |
Securities held to maturity, fair value | 3,313,000 | 3,734,000 | |
Loans held for sale carried at fair value | 168,222,000 | 57,618,000 | |
Restricted equity securities | 13,689,000 | 12,038,000 | |
Loans | 1,420,102,000 | 1,429,794,000 | |
Accrued interest receivable | 5,792,000 | 5,964,000 | |
Other assets | 36,393,000 | 34,489,000 | |
Financial liabilities: | |||
Deposits | 1,729,451,000 | 1,570,008,000 | |
Federal Home Loan Bank advances | 10,000,000 | 125,000,000 | |
Other liabilities | 1,394,000 | 2,753,000 | |
Fair value | |||
Financial assets: | |||
Loans | 1,414,757,000 | 1,442,082,000 | |
Fair value | Level 1 | |||
Financial assets: | |||
Cash and due from banks, interest-bearing deposits in financial institutions | 101,094,000 | 94,681,000 | |
Federal funds sold | 175,000 | 10,762,000 | |
Fair value | Level 2 | |||
Financial assets: | |||
Securities available-for-sale | 213,129,000 | 243,808,000 | |
Securities held to maturity, fair value | 3,411,000 | 3,785,000 | |
Loans held for sale carried at fair value | 169,072,000 | 58,596,000 | |
Accrued interest receivable | 5,792,000 | 5,964,000 | |
Financial liabilities: | |||
Federal Home Loan Bank advances | 10,014,000 | 126,548,000 | |
Fair value | Level 2 / Level 3 | |||
Financial assets: | |||
Other assets | 36,393,000 | 34,489,000 | |
Fair value | Level 3 | |||
Financial liabilities: | |||
Deposits | 1,730,206,000 | 1,572,880,000 | |
Other liabilities | $ 1,394,000 | $ 2,753,000 |
Parent Company Only Financial_3
Parent Company Only Financial Information - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Other assets | $ 59,668 | $ 51,740 | ||
Total assets | 2,037,201 | 1,963,883 | ||
Liabilities and Shareholders’ Equity | ||||
Other liabilities | 24,704 | 14,496 | ||
Total shareholders’ equity | 273,046 | 254,379 | $ 146,946 | $ 139,207 |
Total liabilities and shareholders’ equity | 2,037,201 | 1,963,883 | ||
CapStar Financial Holdings, Inc. | ||||
Assets | ||||
Cash and cash equivalents | 12,874 | 19,918 | ||
Investment in consolidated subsidiary | 259,632 | 234,263 | ||
Other assets | 578 | 499 | ||
Total assets | 273,084 | 254,680 | ||
Liabilities and Shareholders’ Equity | ||||
Other liabilities | 38 | 301 | ||
Total shareholders’ equity | 273,046 | 254,379 | ||
Total liabilities and shareholders’ equity | $ 273,084 | $ 254,680 |
Parent Company Only Financial_4
Parent Company Only Financial Information - Condensed Income Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax benefit | $ 1,613 | $ 2,072 | $ 1,814 | $ 1,346 | $ (535) | $ 554 | $ 665 | $ 483 | $ 4,494 | $ 1,516 | $ (1,328) | $ (47) | $ 6,844 | $ 1,167 | $ 4,635 |
Net income | $ 5,421 | $ 6,466 | $ 5,756 | $ 4,780 | $ (708) | $ 3,656 | $ 3,513 | $ 3,193 | $ 91 | $ 4,419 | $ (3,342) | $ 331 | 22,422 | 9,655 | $ 1,501 |
CapStar Financial Holdings, Inc. | |||||||||||||||
Income - dividends from subsidiary | 3,530 | 1,225 | |||||||||||||
Expenses | 1,083 | 1,054 | |||||||||||||
Income before income taxes and equity in undistributed net income of subsidiary | 2,447 | 171 | |||||||||||||
Income tax benefit | (262) | (242) | |||||||||||||
Income before equity in undistributed net income of subsidiary | 2,709 | 413 | |||||||||||||
Equity in undistributed net income of subsidiary | 19,713 | 9,242 | |||||||||||||
Net income | $ 22,422 | $ 9,655 |
Parent Company Only Financial_5
Parent Company Only Financial Information - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||||||||||||
Net income | $ 5,421 | $ 6,466 | $ 5,756 | $ 4,780 | $ (708) | $ 3,656 | $ 3,513 | $ 3,193 | $ 91 | $ 4,419 | $ (3,342) | $ 331 | $ 22,422 | $ 9,655 | $ 1,501 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||
Net cash provided by (used in) operating activities | (84,688) | 33,585 | (16,614) | ||||||||||||
Cash flows from investing activities: | |||||||||||||||
Cash received from acquisitions, net | 12,053 | ||||||||||||||
Net cash provided by (used in) investing activities | 47,290 | (115,131) | 11,863 | ||||||||||||
Cash flows from financing activities: | |||||||||||||||
Repurchase of common stock | (7,836) | ||||||||||||||
Common and preferred stock dividends paid | (3,507) | (1,244) | |||||||||||||
Net cash provided by financing activities | 33,224 | 104,192 | 7,437 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (4,174) | 22,646 | 2,686 | ||||||||||||
Cash and cash equivalents at beginning of period | 105,443 | 82,797 | $ 80,111 | 105,443 | 82,797 | 80,111 | |||||||||
Cash and cash equivalents at end of period | 101,269 | 105,443 | 82,797 | 101,269 | 105,443 | 82,797 | |||||||||
CapStar Financial Holdings, Inc. | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | 22,422 | 9,655 | |||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||
Increase in other assets | (78) | (221) | |||||||||||||
Increase (Decrease) in other liabilities | (263) | 181 | |||||||||||||
Equity in undistributed net income of subsidiary | (19,713) | (9,242) | |||||||||||||
Net cash provided by (used in) operating activities | 2,368 | 373 | |||||||||||||
Cash flows from investing activities: | |||||||||||||||
Cash received from acquisitions, net | 1,421 | ||||||||||||||
Net cash provided by (used in) investing activities | 1,421 | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||
Repurchase of common stock | (7,836) | ||||||||||||||
Exercise of common stock options and warrants | 1,931 | 5,260 | |||||||||||||
Common and preferred stock dividends paid | (3,507) | (1,244) | |||||||||||||
Net cash provided by financing activities | (9,412) | 4,016 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (7,044) | 5,810 | |||||||||||||
Cash and cash equivalents at beginning of period | $ 19,918 | $ 14,108 | 19,918 | 14,108 | |||||||||||
Cash and cash equivalents at end of period | $ 12,874 | $ 19,918 | $ 14,108 | $ 12,874 | $ 19,918 | $ 14,108 |
Quarterly Financial Results (_3
Quarterly Financial Results (Unaudited) - Summary of Quarterly Financial Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Interest income | $ 22,205 | $ 23,216 | $ 23,158 | $ 22,967 | $ 22,900 | $ 15,782 | $ 15,354 | $ 13,744 | $ 13,124 | $ 13,521 | $ 12,891 | $ 11,979 | $ 91,547 | $ 67,781 | $ 51,515 |
Interest expense | 5,624 | 6,060 | 6,150 | 5,965 | 5,184 | 4,239 | 3,767 | 2,898 | 2,606 | 2,678 | 2,320 | 2,047 | 23,799 | 16,089 | 9,652 |
Net interest income | 16,581 | 17,156 | 17,008 | 17,002 | 17,716 | 11,543 | 11,587 | 10,846 | 10,518 | 10,843 | 10,571 | 9,932 | 67,748 | 51,692 | 41,863 |
Provision for loan losses | (125) | 886 | 1,514 | 481 | 169 | 678 | (30) | (195) | 9,690 | 3,405 | 761 | 2,842 | 12,870 | ||
Net interest income after provision for loan losses | 16,581 | 17,281 | 17,008 | 16,116 | 16,202 | 11,062 | 11,418 | 10,168 | 10,548 | 11,038 | 881 | 6,527 | 66,987 | 48,850 | 28,993 |
Noninterest income | 5,719 | 6,788 | 7,032 | 4,735 | 6,387 | 3,218 | 2,765 | 3,088 | 2,736 | 3,372 | 2,666 | 2,133 | 24,274 | 15,459 | 10,908 |
Noninterest expense | 15,266 | 15,531 | 16,470 | 14,725 | 23,832 | 10,070 | 10,005 | 9,580 | 8,699 | 8,475 | 8,217 | 8,376 | 61,995 | 53,487 | 33,765 |
Income before income taxes | 7,034 | 8,538 | 7,570 | 6,126 | (1,243) | 4,210 | 4,178 | 3,676 | 4,585 | 5,935 | (4,670) | 284 | 29,266 | 10,822 | 6,136 |
Income tax expense | 1,613 | 2,072 | 1,814 | 1,346 | (535) | 554 | 665 | 483 | 4,494 | 1,516 | (1,328) | (47) | 6,844 | 1,167 | 4,635 |
Net income | $ 5,421 | $ 6,466 | $ 5,756 | $ 4,780 | $ (708) | $ 3,656 | $ 3,513 | $ 3,193 | $ 91 | $ 4,419 | $ (3,342) | $ 331 | $ 22,422 | $ 9,655 | $ 1,501 |
Net income (loss) per share, basic | $ 0.30 | $ 0.36 | $ 0.33 | $ 0.27 | $ (0.04) | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.01 | $ 0.39 | $ (0.30) | $ 0.03 | $ 1.25 | $ 0.73 | $ 0.13 |
Net income (loss) per share, diluted | $ 0.29 | $ 0.35 | $ 0.31 | $ 0.25 | $ (0.04) | $ 0.28 | $ 0.27 | $ 0.25 | $ 0.01 | $ 0.35 | $ (0.26) | $ 0.03 | $ 1.20 | $ 0.67 | $ 0.12 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands | Jan. 22, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | |||
Total combined assets | $ 2,037,201 | $ 1,963,883 | |
FCB and BOW | |||
Subsequent Event [Line Items] | |||
Total combined assets | $ 467,000 | ||
Subsequent Events | Merger Agreement | |||
Subsequent Event [Line Items] | |||
Number of shares issuable | 3,634,218 | ||
Cash | $ 26,400 | ||
Total consideration | $ 85,100 |