Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 09, 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 | ||
Entity Registrant Name | Byline Bancorp, Inc. | ||
Entity Central Index Key | 0001702750 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity File Number | 001-38139 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-3012593 | ||
Entity Address, Address Line One | 180 North LaSalle Street | ||
Entity Address, Address Line Two | Suite 300 | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60601 | ||
City Area Code | 773 | ||
Local Phone Number | 244-7000 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Public Float | $ 484,533,744 | ||
Entity Common Stock, Shares Outstanding | 38,443,504 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement relating to its 2020 Annual Meeting of Stockholders, scheduled to be held on June 9, 2020, are incorporated by reference into Part III of this Report. | ||
Title of each class | Common Stock | ||
Trading Symbol | BY | ||
Name of each exchange on which registered | NYSE |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 48,228 | $ 30,190 |
Interest bearing deposits with other banks | 32,509 | 91,670 |
Cash and cash equivalents | 80,737 | 121,860 |
Equity and other securities, at fair value | 8,031 | |
Securities available-for-sale, at fair value | 1,186,292 | 817,656 |
Securities held-to-maturity, at amortized cost ($4,498 and $97,739 fair value at December 31, 2019 and 2018, respectively) | 4,412 | 99,266 |
Restricted stock, at cost | 22,127 | 19,202 |
Loans held for sale | 11,732 | 19,827 |
Loans and leases: | ||
Loans and leases | 3,785,661 | 3,501,626 |
Allowance for loan and lease losses | (31,936) | (25,201) |
Net loans and leases | 3,753,725 | 3,476,425 |
Servicing assets, at fair value | 19,471 | 19,693 |
Accrued interest receivable | 13,283 | 10,863 |
Premises and equipment, net | 96,140 | 97,680 |
Assets held for sale | 15,362 | 14,489 |
Other real estate owned, net | 9,896 | 5,041 |
Goodwill | 148,353 | 128,177 |
Other intangible assets, net | 31,902 | 33,419 |
Bank-owned life insurance | 9,750 | 5,961 |
Deferred tax assets, net | 38,315 | 35,643 |
Due from counterparty | 43,145 | 5,338 |
Other assets | 29,136 | 32,034 |
Total assets | 5,521,809 | 4,942,574 |
LIABILITIES | ||
Non-interest-bearing demand deposits | 1,279,641 | 1,192,873 |
Interest-bearing deposits: | ||
NOW, savings accounts, and money market accounts | 1,695,411 | 1,413,158 |
Time deposits | 1,172,525 | 1,143,885 |
Total deposits | 4,147,577 | 3,749,916 |
Accrued interest payable | 3,677 | 3,484 |
Federal Home Loan Bank advances | 490,000 | 425,000 |
Securities sold under agreements to repurchase | 49,638 | 34,166 |
Junior subordinated debentures issued to capital trusts, net | 37,334 | 36,768 |
Accrued expenses and other liabilities | 43,468 | 42,568 |
Total liabilities | 4,771,694 | 4,291,902 |
COMMITMENTS AND CONTINGENT LIABILITIES (Note 17) | ||
STOCKHOLDERS’ EQUITY (Note 25) | ||
Preferred stock | 10,438 | 10,438 |
Common stock, voting $0.01 par value at December 31, 2019 and 2018; 150,000,000 shares authorized at December 31, 2019 and 2018; 38,256,500 shares issued and outstanding at December 31, 2019 and 36,343,239 issued and outstanding at December 31, 2018 | 379 | 361 |
Additional paid-in capital | 580,965 | 546,849 |
Retained earnings | 159,033 | 102,522 |
Accumulated other comprehensive loss, net of tax | (700) | (9,498) |
Total stockholders’ equity | 750,115 | 650,672 |
Total liabilities and stockholders’ equity | $ 5,521,809 | $ 4,942,574 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Securities held-to-maturity, fair value | $ 4,498 | $ 97,739 |
Common stock, voting par value | $ 0.01 | $ 0.01 |
Common stock, voting shares authorized | 150,000,000 | 150,000,000 |
Common stock, voting shares issued | 38,256,500 | 36,343,239 |
Common stock, voting shares outstanding | 38,256,500 | 36,343,239 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INTEREST AND DIVIDEND INCOME | |||
Interest and fees on loans and leases | $ 235,501 | $ 184,972 | $ 120,406 |
Interest on taxable securities | 25,233 | 19,037 | 14,892 |
Interest on tax-exempt securities | 1,786 | 1,095 | 634 |
Other interest and dividend income | 2,294 | 1,847 | 871 |
Total interest and dividend income | 264,814 | 206,951 | 136,803 |
INTEREST EXPENSE | |||
Deposits | 36,325 | 19,329 | 7,736 |
Federal Home Loan Bank advances | 8,961 | 6,160 | 3,291 |
Subordinated debentures and other borrowings | 3,243 | 2,857 | 2,864 |
Total interest expense | 48,529 | 28,346 | 13,891 |
Net interest income | 216,285 | 178,605 | 122,912 |
PROVISION FOR LOAN AND LEASE LOSSES | 20,708 | 18,795 | 12,653 |
Net interest income after provision for loan and lease losses | 195,577 | 159,810 | 110,259 |
NON-INTEREST INCOME | |||
ATM and interchange fees | 3,785 | 4,313 | 4,812 |
Net gains on sales of securities available-for-sale | 1,151 | 164 | 8 |
Change in fair value of equity securities, net | 1,416 | ||
Net gains on sales of loans | 31,845 | 31,551 | 33,062 |
Wealth management and trust income | 2,578 | 1,545 | |
Other non-interest income | 4,204 | 5,505 | 2,201 |
Total non-interest income | 55,493 | 50,526 | 49,030 |
NON-INTEREST EXPENSE | |||
Salaries and employee benefits | 95,309 | 80,382 | 67,269 |
Occupancy expense, net | 16,668 | 15,829 | 14,078 |
Equipment expense | 3,103 | 2,419 | 2,472 |
Loan and lease related expenses | 8,015 | 6,109 | 3,685 |
Legal, audit, and other professional fees | 11,453 | 11,373 | 7,027 |
Data processing | 13,733 | 18,242 | 9,539 |
Net loss (gain) recognized on other real estate owned and other related expenses | 665 | 235 | (294) |
Regulatory assessments | 697 | 1,744 | 1,193 |
Other intangible assets amortization expense | 7,737 | 5,629 | 3,074 |
Advertising and promotions | 3,398 | 1,723 | 1,035 |
Telecommunications | 1,963 | 1,710 | 1,593 |
Other non-interest expense | 11,034 | 9,501 | 7,824 |
Total non-interest expense | 173,775 | 154,896 | 118,495 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 77,295 | 55,440 | 40,794 |
PROVISION FOR INCOME TAXES | 20,293 | 14,247 | 19,099 |
NET INCOME | 57,002 | 41,193 | 21,695 |
Dividends on preferred shares | 783 | 783 | 11,277 |
INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 56,219 | $ 40,410 | $ 10,418 |
EARNINGS PER COMMON SHARE | |||
Basic | $ 1.51 | $ 1.21 | $ 0.39 |
Diluted | $ 1.48 | $ 1.18 | $ 0.38 |
Fees and Service Charges on Deposits [Member] | |||
NON-INTEREST INCOME | |||
Fees and charges | $ 6,458 | $ 6,445 | $ 5,289 |
Loan Servicing Revenue [Member] | |||
NON-INTEREST INCOME | |||
Fees and charges | 10,695 | 10,272 | 9,599 |
Loan Servicing Asset Revaluation [Member] | |||
NON-INTEREST INCOME | |||
Fees and charges | $ (6,639) | $ (9,269) | $ (5,941) |
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 Other Comprehensive Income [Abstract] | |||
Net income | $ 57,002 | $ 41,193 | $ 21,695 |
Securities available-for-sale | |||
Unrealized holding gains (losses) arising during the period | 22,633 | (6,503) | 2,111 |
Reclassification adjustments for net gains included in net income | (1,151) | (164) | (8) |
Tax effect | (6,115) | 1,856 | (602) |
Net of tax | 15,367 | (4,811) | 1,501 |
Cash flow hedges | |||
Unrealized holding (losses) gains arising during the period | (5,483) | 2,960 | 688 |
Reclassification adjustments for net (gains) losses included in net income | (1,626) | (1,348) | 579 |
Tax effect | 1,980 | (449) | (587) |
Net of tax | (5,129) | 1,163 | 680 |
Total other comprehensive income (loss) | 10,238 | (3,648) | 2,181 |
Comprehensive income | $ 67,240 | $ 37,545 | $ 23,876 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2016 | $ 382,658 | $ 25,441 | $ 313,552 | $ 50,933 | $ (7,268) | |
Beginning balance, shares at Dec. 31, 2016 | 25,441 | 24,616,706 | ||||
Net income | 21,695 | 21,695 | ||||
Other comprehensive income (loss), net of tax | 2,181 | 2,181 | ||||
Issuance of common stock in connection with reincorporation merger | $ 246 | (246) | ||||
Repurchase of preferred stock | (15,003) | $ (15,003) | ||||
Repurchase of preferred stock, shares | (15,003) | |||||
Issuance of common stock, net of issuance cost | 76,829 | $ 46 | 76,783 | |||
Issuance of common stock, net of issuance cost, shares | 4,630,194 | |||||
Restricted stock activity, shares | 70,398 | |||||
Cash dividends declared on preferred stock | (11,277) | (11,277) | ||||
Cash paid in lieu of fractional shares | (2) | (2) | ||||
Share-based compensation expense | 1,497 | 1,497 | ||||
Ending balance at Dec. 31, 2017 | 458,578 | $ 10,438 | $ 292 | 391,586 | 61,349 | (5,087) |
Ending balance, shares at Dec. 31, 2017 | 10,438 | 29,317,298 | ||||
Net income | 41,193 | 41,193 | ||||
Other comprehensive income (loss), net of tax | (3,648) | (3,648) | ||||
Issuance of common stock upon exercise of stock options | 2,340 | $ 2 | 2,338 | |||
Issuance of common stock upon exercise of stock options, shares | 205,152 | |||||
Issuance of common stock and stock options due to business combination,net of issuance costs | 151,275 | $ 67 | 151,208 | |||
Issuance of common stock and stock options due to business combination, net of issuance costs, shares | 6,682,850 | |||||
Restricted stock activity, shares | 129,057 | |||||
Issuance of common stock in connection with employee stock purchase plan | 203 | 203 | ||||
Issuance of common stock in connection with employee stock purchase plan, shares | 8,882 | |||||
Reclassification of certain income tax effects from accumulated other comprehensive income (loss) | (763) | 763 | (763) | |||
Cash dividends declared on preferred stock | (783) | (783) | ||||
Share-based compensation expense | 1,514 | 1,514 | ||||
Ending balance at Dec. 31, 2018 | 650,672 | $ 10,438 | $ 361 | 546,849 | 102,522 | (9,498) |
Ending balance, shares at Dec. 31, 2018 | 10,438 | 36,343,239 | ||||
Net income | 57,002 | 57,002 | ||||
Other comprehensive income (loss), net of tax | 10,238 | 10,238 | ||||
Issuance of common stock upon exercise of stock options | 3,146 | $ 2 | 3,144 | |||
Issuance of common stock upon exercise of stock options, shares | 241,211 | |||||
Issuance of common stock and stock options due to business combination,net of issuance costs | 28,735 | $ 15 | 28,720 | |||
Issuance of common stock and stock options due to business combination, net of issuance costs, shares | 1,464,558 | |||||
Restricted stock activity, shares | 180,664 | |||||
Vesting of restricted stock awards | $ 1 | (1) | ||||
Issuance of common stock in connection with employee stock purchase plan | 580 | 580 | ||||
Issuance of common stock in connection with employee stock purchase plan, shares | 26,828 | |||||
Cumulative-effect adjustment (ASU 2016-01) | (1,440) | 1,440 | (1,440) | |||
Cash dividends declared on preferred stock | (783) | (783) | ||||
Cash dividends declared on commonstock | (1,148) | (1,148) | ||||
Share-based compensation expense | 1,673 | 1,673 | ||||
Ending balance at Dec. 31, 2019 | $ 750,115 | $ 10,438 | $ 379 | $ 580,965 | $ 159,033 | $ (700) |
Ending balance, shares at Dec. 31, 2019 | 10,438 | 38,256,500 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 57,002 | $ 41,193 | $ 21,695 |
Adjustments to reconcile net income to net cash from operating activities: | |||
PROVISION FOR LOAN AND LEASE LOSSES | 20,708 | 18,795 | 12,653 |
Impairment loss on assets held for sale | 569 | 627 | 951 |
Depreciation and amortization of premises and equipment | 6,389 | 5,579 | 5,193 |
Net amortization of securities | 2,468 | 3,192 | 4,670 |
Net change in fair value of equity securities, net | (1,416) | ||
Net gains on sales of securities available-for-sale | (1,151) | (164) | (8) |
Losses on disposal of premises and equipment | 26 | 151 | 110 |
Net losses (gains) on sales of assets held for sale | (82) | (1,103) | 217 |
Net gains on sales of loans | (31,845) | (31,551) | (33,062) |
Originations of mortgage loans held for sale | (4) | ||
Net proceeds from mortgage loans sold | 155 | ||
Originations of U.S. government guaranteed loans | (330,585) | (336,212) | (293,615) |
Proceeds from U.S. government guaranteed loans sold | 340,287 | 384,681 | 309,164 |
Accretion of premiums and discounts on acquired loans, net | (23,190) | (20,599) | (8,677) |
Net change in servicing assets | 222 | 1,707 | (309) |
Net valuation adjustments on other real estate owned | 511 | 636 | 883 |
Net gains on sales of other real estate owned | (428) | (383) | (2,147) |
Other intangible assets amortization expense | 7,737 | 5,629 | 3,074 |
Amortization of time deposit premium | (175) | (404) | (778) |
Amortization of Federal Home Loan Bank advances premium | (19) | (209) | |
Accretion of junior subordinated debentures discount | 566 | 624 | 721 |
Share-based compensation expense | 1,673 | 1,514 | 1,497 |
Deferred tax provision (benefit), net of valuation | (882) | 15,442 | 16,604 |
Increase in cash surrender value of bank owned life insurance | (304) | (243) | (247) |
Net gain on death benefit of bank owned life insurance | (69) | (313) | |
Changes in assets and liabilities: | |||
Accrued interest receivable | (3,097) | (160) | (799) |
Other assets | (10,292) | (5,344) | (350) |
Accrued interest payable | 130 | 1,608 | (1,121) |
Accrued expenses and other liabilities | (5,458) | (5,261) | (9,095) |
Net cash provided by operating activities | 29,314 | 79,935 | 26,853 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of securities available-for-sale | (549,871) | (206,046) | (53,480) |
Proceeds from maturities and calls of securities available-for-sale | 123,617 | 29,593 | 7,917 |
Proceeds from paydowns of securities available-for-sale | 104,139 | 60,557 | 69,320 |
Proceeds from sales and calls of securities available-for-sale | 92,103 | 544 | 8 |
Proceeds from maturities and calls of securities held-to-maturity | 655 | ||
Proceeds from paydowns of securities held-to-maturity | 16,892 | 19,747 | |
Purchases of Federal Home Loan Bank stock | (38,610) | (36,633) | (19,485) |
Federal Home Loan Bank stock repurchases | 36,099 | 35,134 | 18,135 |
Proceeds from other loans sold | 709 | 9,984 | |
Net change in loans and leases | (23,154) | (300,142) | (132,568) |
Purchases of premises and equipment | (4,267) | (2,578) | (2,538) |
Proceeds from sales of premises and equipment | 4 | 1,440 | |
Proceeds from sales of assets held for sale | 1,373 | 4,415 | 5,373 |
Proceeds from sales of other real estate owned | 2,990 | 7,051 | 13,898 |
Proceeds from bank owned life insurance death benefit | 1,399 | ||
Net cash received in acquisition of business | 4,306 | 20,374 | |
Net cash used in investing activities | (250,562) | (369,399) | (61,635) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net increase (decrease) in deposits | 107,665 | 284,723 | (46,287) |
Proceeds from Federal Home Loan Bank advances | 8,510,000 | 5,932,000 | 3,037,000 |
Repayments of Federal Home Loan Bank advances | (8,450,300) | (5,868,487) | (2,989,000) |
Proceeds from line of credit | 5,680 | ||
Repayments of line of credit | (11,335) | (20,650) | |
Net increase in securities sold under agreements to repurchase | 15,472 | 2,979 | 13,938 |
Dividends paid on preferred stock | (783) | (783) | (11,277) |
Cash paid in lieu of fractional shares | (2) | ||
Proceeds from issuance of common stock, upon exercise of stock options | 3,146 | 2,340 | |
Proceeds from issuance of common stock | 580 | 203 | 76,829 |
Proceeds from issuance of preferred stock | 1,050 | ||
Repurchase of preferred stock | (15,003) | ||
Net cash provided by financing activities | 180,125 | 352,975 | 46,598 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (41,123) | 63,511 | 11,816 |
CASH AND CASH EQUIVALENTS, beginning of period | 121,860 | 58,349 | 46,533 |
CASH AND CASH EQUIVALENTS, end of period | 80,737 | 121,860 | 58,349 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Cash paid during the period for interest | 48,008 | 25,967 | 15,279 |
Cash payments during the period for taxes | 19,380 | 3,513 | 2,849 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Transfer of held-to-maturity securities to available-for-sale securities | 94,837 | ||
Reclassification to other equity securities | 6,609 | ||
Delayed payments of mortgage-backed securities | 507 | 398 | 311 |
Internally financed sale of other real estate owned | 183 | 444 | |
Internally financed sale of assets held for sale | 1,800 | ||
Due to broker | 9,838 | ||
Due from counterparties | 43,145 | 5,338 | $ 39,824 |
Due from broker for payment of life insurance death benefit | 69 | ||
Common dividend declared, not paid | 1,148 | ||
Total assets acquired from acquisition | 321,199 | 1,142,125 | |
Value ascribed to goodwill | 20,176 | 73,615 | |
Total liabilities assumed from acquisition | 305,892 | 1,036,609 | |
Common stock and stock options issued due to acquisition of business | $ 29,320 | $ 152,127 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Business Description And Accounting Policies [Abstract] | |
Business and Summary of Significant Accounting Policies | Note 1—Business and Summary of Significant Accounting Policies Nature of business —Byline Bancorp, Inc. (the “Company,” “we,” “us,” “our”) is a bank holding company whose principal activity is the ownership and management of its subsidiary bank, Byline Bank (the “Bank”). The Bank originates commercial, mortgage and consumer loans and leases, U.S. government guaranteed loans, and receives deposits from customers located primarily in the Chicago, Illinois metropolitan area. The Bank operates 56 Chicago metropolitan area and one Brookfield, Wisconsin, banking offices. The Bank operates under an Illinois state bank charter, provides a full range of banking services, and has full trust powers. As an Illinois state‑chartered financial institution that is not a member of the Federal Reserve System, the Bank is subject to regulation by the Illinois Department of Financial and Professional Regulation and the Federal Deposit Insurance Corporation. The Company is regulated by the Board of Governors of the Federal Reserve System. The Bank is a participant in the Small Business Administration (“SBA”) and the United States Department of Agriculture (“USDA”) (collectively referred to as “U.S. government guaranteed loans”) lending programs and originates U.S. government guaranteed loans. As a result of its acquisition of First Evanston Bancorp, Inc. (“First Evanston”) on May 31, 2018, the Bank also provides wealth management services to our customers. See Note 3—Acquisition of a Business for additional information regarding the transaction. The Bank engages in short‑term direct financing lease contracts through BFG Corporation, doing business as Byline Financial Group (“BFG”), a wholly‑owned subsidiary of the Bank. BFG is located in Bannockburn, Illinois with sales offices in Illinois and New York, and sales representatives in Illinois, Michigan, New Jersey and New York. On June 14, 2017, stockholders of record as of May 22, 2017 voted to approve an Agreement and Plan of Merger between Byline Bancorp, Inc., an Illinois corporation (“Byline Illinois”), and Byline Bancorp, Inc., a wholly owned Delaware subsidiary of the Company, including the amended and restated certificate of incorporation and by‑laws of the Company. Each share of Byline Illinois common stock issued and outstanding immediately prior to the effective time of the Merger was converted automatically into the right to receive one fifth (0.20) of a share of common stock of the Company. Stockholders were paid a total of $2,000 in cash for remaining fractional shares based on the offering price of $19.00 per share. No subsequent events were identified that would have required a change to the consolidated financial statements or disclosure in the notes to the consolidated financial statements. Basis of financial statement presentation and consolidation —The consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany items and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) as contained within the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and rules and regulations of the Securities and Exchange Commission (“SEC”), including the instructions to Regulation S‑X. In accordance with applicable accounting standards, the Company does not consolidate statutory trusts established for the sole purposes of issuing trust preferred securities and related trust common securities. See Note 15, Junior Subordinated Debentures, for additional discussion. Dollars within footnote tables disclosed within the consolidated financial statements are presented in thousands, except share and per share data. Operating results include the years ended December 31, 2019, 2018 and 2017. Use of estimates —In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the Consolidated Statements of Financial Condition and certain revenues and expenses for the periods included in the Consolidated Statements of Operations and the accompanying notes. Actual results could differ from those estimates. Estimates that are particularly susceptible to significant changes in the near term relate to the determination of expected cash flows of acquired impaired loans, the allowance for loan and lease losses, valuation of servicing assets, fair value measurements for assets and liabilities, goodwill, other intangible assets, the valuation or recognition of deferred tax assets and liabilities, and the valuation of assets and liabilities acquired in business combinations. Note 1—Business and Summary of Significant Accounting Policies (continued) Business combinations —The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations (“ASC 805”). The Company recognizes the fair value of the assets acquired and liabilities assumed as of the date of acquisition, with any excess of the fair value of consideration provided over the fair value of the identifiable net tangible and intangible assets acquired recorded as goodwill. Transaction costs are immediately expensed as applicable. The results of operations of the acquired business are included in the Consolidated Statements of Operations from the effective date of the acquisition, which is the date control is obtained. In accordance with ASC 805, the acquiring company retains the right to make appropriate adjustments to the assets and liabilities of the acquired entity for information obtained during the measurement period about facts and circumstances that existed as of the acquisition date. The measurement period ends as of the earlier of (a) one year from the acquisition date or (b) the date when the acquirer receives the information necessary to complete the business combination accounting. Cash and cash equivalents —Cash and cash equivalents have original maturities of three months or less. The Company holds cash and cash equivalents on deposit with other banks and financial institutions in amounts that periodically exceed the federal deposit insurance limit. The Company evaluates the credit quality of these banks and financial institutions to mitigate its credit risk and has not experienced any losses in such accounts. Cash on hand or on deposit with the Federal Reserve Bank of Chicago was required to meet regulatory reserve and clearing requirements. The reserve requirement was $51.8 million and $44.8 million as of December 31, 2019 and 2018, respectively, and the Bank met the requirement at each balance sheet date. Equity and other securities —Equity and other securities have no stated maturities and may be sold in response to the same environmental factors as securities available for sale. Equity and other securities are recorded at fair value with changes in fair value included in earnings. Securities —Securities that are held principally for resale in the near term are classified as trading and recorded at fair value with changes in fair value included in earnings. The Company did not invest in securities classified as trading during 2019, 2018 and 2017. Securities are classified as available‑for‑sale if the instrument may be sold in response to such factors including changes in market interest rates and related changes in prepayment risk, needs for liquidity, changes in the availability of and the yield on alternative instruments, and changes in funding sources and terms. Gains or losses on the sales of available‑for‑sale securities are recorded on the trade date and determined using the specific‑identification method. Unrealized holding gains or losses, net of tax, on available‑for‑sale securities are carried as accumulated other comprehensive income (loss) within stockholders’ equity until realized. Securities are classified as held‑to‑maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Fair values of securities are generally based on quoted market prices for the same or similar instruments. See Note 18—Fair Value Measurement for additional discussion on the determination of fair values. Interest income includes the amortization of purchase premiums and discounts, which are recognized using the effective interest method over the terms of the securities. Management evaluates securities for other‑than‑temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. The evaluation is based upon factors such as the creditworthiness of the issuers or guarantors, the underlying collateral, if applicable, and the continuing performance of the securities. Management also evaluates other facts and circumstances that may be indicative of an OTTI condition. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost, and near‑term prospects of the issuer. The Company’s assessment of OTTI considers whether it intends to sell a security or if it is more likely than not that it would be required to sell the security before recovery of the amortized cost basis of the investment, which may be at maturity. For debt securities, if the Company intends to sell the security or it is more likely than not that it will be required to sell the security before recovering its cost basis, the entire impairment loss is recognized in earnings as an OTTI. If the Company does not intend to sell the security and it is more likely than not that it will not be required to sell the security, and the Company does not expect to recover the entire amortized cost basis of the security, only the portion of the impairment loss representing credit losses would be recognized in earnings. The credit loss on a security is measured as the difference between the amortized cost basis and the present value of the cash flows expected to be collected. Projected cash flows are discounted by the original or current effective interest rate depending on the nature of the security being measured for potential OTTI. The remaining impairment related to all other factors, the difference between the present value of the cash flows expected to be collected and fair value, is recognized as a charge to other comprehensive income (loss). Note 1—Business and Summary of Significant Accounting Policies (continued) Restricted stock —The Company owns stock of the Federal Home Loan Bank of Chicago (“FHLB”). No ready market exists for this stock, and it has no quoted market value. As a member of the FHLB system, the Bank is required to maintain an investment in FHLB stock. The stock is redeemable at par by the FHLB and is, therefore, carried at cost. In addition, the Company owns stock of Bankers Bank, which is redeemable at par and carried at cost. Restricted stock is generally viewed as a long‑term investment. Accordingly, when evaluating for impairment, its value is determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company did not recognize impairment of its restricted stock as a result of its impairment analyses for the years ended December 31, 2019, 2018, and 2017. Loans held for sale —Loans that management has the intent and ability to sell are designated as held for sale. U.S. government guaranteed loans and mortgage loans originated are carried at either amortized cost or estimated fair value. The Company determines whether to account for loans at fair value or amortized cost at origination. The loans accounted for at fair value remain at fair value after the determination. The loans accounted for at amortized cost are carried at the lower of cost or fair value, valued on a loan by loan basis. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Gains or losses on sales of U.S. government guaranteed loans are recognized based on the difference between the net sales proceeds and the carrying value of the sold portion of the loan, less the fair value of the servicing asset recognized, and are reflected as operating activities in the Consolidated Statements of Cash Flows. The difference between the initial carrying balance of the retained portion of the loan and the relative fair value of the sold portion is recorded as a discount to the retained portion of the loan, establishing a new carrying balance. The recorded discount is accreted to earnings on a level yield basis. U.S. government guaranteed loans are generally sold with servicing retained. Loans sold that have not yet settled as of year-end are classified as due-from counterparty on the Consolidated Statements of Financial Condition. Originated loans —Originated loans are stated at the amount of unpaid principal outstanding, net of purchase premiums and discounts, and any deferred fees or costs. Net deferred fees, costs, discounts and premiums are recognized as yield adjustments over the contractual life of the loan. Interest on loans is calculated daily based on the principal amount outstanding. Additionally, once an acquired non-impaired loan reaches its contractual maturity date, it is re-underwritten, and if renewed, it is classified as an originated loan. Originated loans are classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due, in accordance with the terms of the original loan agreement. The carrying value of impaired loans is based on the present value of expected future cash flows (discounted at each loan’s effective interest rate) or, for collateral dependent loans, at the fair value of the collateral less estimated selling costs. If the measurement of each impaired loan’s value is less than the recorded investment in the loan, impairment is recognized and the carrying value of the loan is adjusted in the allowance for loan and lease losses as a specific component provided or through a charge‑off of the impaired portion of the loan. Accrual of interest on impaired loans is discontinued when the loan is 90 days past due or when, in management’s opinion, the borrower may be unable to make payments as they become due. When the accrual of interest is discontinued, all unpaid accrued interest is reversed through interest income. Payments received during the time a loan is on non‑accrual status are applied to principal. Interest income is not recognized until the loan is returned to accrual status or after the principal balance is paid in full. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured as evidenced by agreed upon performance for a period of not less than six months. Troubled debt restructuring —A troubled debt restructuring (“TDR”) is a formal restructuring of a loan in which the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower. The concessions may be granted in various forms, including providing a below‑market interest rate, reduction in the loan balance or accrued interest, extension of the maturity date, or a combination of these. Troubled debt restructurings are considered to be impaired loans and are subject to the Company’s impaired loan accounting policy. Acquired impaired loans are not subject to TDR accounting. Note 1—Business and Summary of Significant Accounting Policies (continued) The Company does not accrue interest on a TDR unless it believes collection of all principal and interest under the modified terms is reasonably assured. For a TDR to begin accruing interest, the borrower must demonstrate some level of past performance and the future capacity to perform under the modified terms. Generally, six months of consecutive payment performance under the restructured terms is required before a TDR is returned to accrual status. Direct finance leases —The Company engages in leasing for small‑ticket equipment, software, machinery and ancillary supplies and services to customers under leases that qualify as direct financing leases for financial reporting. Certain leases qualify as operating leases for income tax purposes. Under the direct financing method of accounting, the minimum lease payments to be received under the lease contract, together with the estimated unguaranteed residual values of the related equipment, are recorded as lease receivables when the lease is signed and funded and the lease property is delivered to the customer. The excess of the minimum lease payments and residual values over the amount financed is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease based on the effective yield interest method. Residual value is the estimated fair market value of the equipment on lease at lease termination. In estimating the equipment’s fair value at lease termination, the Company relies on historical experience by equipment type and manufacturer and, where available, valuations by independent appraisers, adjusted for known trends. The Company’s residual values are estimates for reasonableness; however, the amounts the Company will ultimately realize could differ from the estimated amounts. If the review of the residual value results in other‑than‑temporary impairment, the impairment is recognized in current period earnings. An upward adjustment of the estimated residual value is not recorded. The policies for delinquency and non‑accrual for direct finance leases are materially consistent with those described for all classes of loan receivables. The Company defers and amortizes certain initial direct costs over the contractual term of the lease as an adjustment to the yield. The unamortized direct costs are recorded as a reduction of unearned lease income. Acquired impaired loans —Loans initially acquired with evidence of credit quality deterioration are accounted for under ASC Topic 310‑30, Accounting for Purchased Loans with Deteriorated Credit Quality (“ASC 310‑30”). These loans are recorded either on a pool or a loan‑by‑loan basis at their estimated fair value where applicable. The Company may aggregate loans into pools based on similar credit risks and predominant risk characteristics such as delinquency status and loan type. Management estimated the fair values of acquired impaired loans at the acquisition date based on estimated future cash flows. The excess of cash flows expected to be collected over a loan’s carrying value is considered to be the accretable yield and is recognized as interest income over the estimated life of the loan or pool using the effective yield method. The acquisition date estimates of accretable yield may subsequently change due to changes in management’s estimates of timing and amounts of expected cash flows. The excess of the contractual amounts due over the cash flows expected to be collected is considered to be the non‑accretable difference. The non‑accretable difference represents the Company’s estimate of the credit losses expected to occur and is considered in determining the fair value of the loans. Reclassifications between accretable yield and non‑accretable difference represent changes in expected cash flows over the remaining estimated life of the loan or pool. Subsequent increases in expected cash flows over those expected at inception are adjusted through an increase to the accretable yield on a prospective basis. Any subsequent decreases in expected cash flows attributable to credit deterioration are recognized by recording an additional provision for loan losses. Once a pool of loans is assembled, the integrity of the pool is maintained. A loan can only be removed from a pool if either of the following conditions is met: (1) the Company sells, forecloses, or otherwise receives assets in satisfaction of the loan, or (2) the loan is written off. A refinancing or restructuring of a loan does not result in a removal of a loan from a pool. Loan sales are accounted for under ASC Topic 860, Transfers and Servicing (“ASC 860”), when control over the assets have been relinquished. See transfers of financial assets accounting policy. Acquired non‑impaired loans and leases —Acquired non‑impaired loans and leases are accounted for under ASC Subtopic 310‑20, Receivables Nonrefundable Fees and Other Costs (“ASC 310‑20”). These loans and leases were individually recorded at fair value at the time of acquisition. Any previously recognized allowance for loan and lease losses and unearned fees or discounts are not carried over and recognized at the date of acquisition. The component of fair value representing an adjustment to an asset’s outstanding principal balance is accreted or amortized over the life of the related asset as a yield adjustment. The balance of the asset is then evaluated periodically pursuant to the Company’s allowance for loan and lease loss accounting policy and any adjustment required for credit risk is recorded within the allowance for loan and lease losses. Upon reaching the maturity date, all acquired non-impaired loan premium or discount is fully amortized or accreted. If the loan is re-underwritten and renewed, it is internally reclassified as an originated loan. The loan is then evaluated periodically pursuant to the Company’s allowance for loan and lease loss accounting without any consideration of the acquisition premium or discount. Note 1—Business and Summary of Significant Accounting Policies (continued) Allowance for loan and lease losses —The allowance for loan and lease losses is maintained at a level management believes is appropriate to provide for probable loan and lease losses as of the dates of the Consolidated Statements of Financial Condition. The allowance for loan and lease losses is increased by a provision for loans and lease losses and decreased by charge‑offs, net of recoveries. Loan and lease losses are charged against the allowance for loan and lease losses when management believes the uncollectibility of a loan or lease balance is confirmed. Subsequent recoveries, if any, are credited to the allowance for loan and lease losses. The allowance for loan and lease losses is based on management’s evaluation of the loan and lease portfolio giving consideration to the nature and volume of the portfolio, the value of the underlying collateral, overall portfolio quality, review of specific problem loans or leases, and prevailing economic conditions that may affect the borrower’s ability to pay. While management uses the best information available to make its evaluation, future adjustments to the allowance for loan and lease losses may be necessary if there are significant changes in economic condition. The allowance for loan and lease losses consists of general and specific components. Allocations of the allowance for loan and lease losses not attributable to acquired impaired loans may be made for specific loans and leases, but the entire allowance is available for any loan and lease that, in management’s judgement, should be charged off. The general component covers loans and leases that are collectively evaluated for impairment. Larger groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, and leases are collectively evaluated for impairment, and accordingly, they are not included in the separately identified impairment disclosures. The general component is based on a trailing 12‑quarter weighted average loss rate for each loan category based on the Company’s historical losses and its peer group and adjusted for qualitative and other economic factors. These factors include (1) changes in lending policies and procedures, including changes in underwriting standards and collections, charge‑off and recovery practices; (2) changes in international, national, regional and local conditions; (3) changes in the nature and volume of the portfolio and terms of the loans and leases; (4) changes in experience, depth and ability of lending management and other relevant staff; (5) changes in the volume and severity of past due loans and leases; (6) changes in the quality of the Company’s loan review system; (7) changes in the value of the underlying collateral for collateral dependent loans and leases; (8) existence and effect of any concentrations of credit and changes in the levels of such concentrations; and (9) the effect of other external factors (i.e., competition, legal and regulatory requirements) on the level of estimated credit losses. Based upon management’s judgement of other factors that fall outside of the predefined qualitative or historical loss rates, the allowance for loan and lease losses may include an unallocated component not included in these predefined factors. The specific component relates to loans that are risk‑rated substandard or worse, and 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. Factors considered by management in determining the impairment include payment status, collateral value, strength of guarantor, 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 and are reviewed on a case‑by‑case basis. TDRs are individually evaluated for impairment and are measured at the present value of estimated future cash flows using the loan’s effective rate at origination. If a TDR is considered to be a collateral dependent loan, the loan is reported at the fair value of the collateral, less estimated costs to sell. The allowance for loan losses also includes amounts representing decreases in expected cash flows attributable to credit deterioration of acquired impaired loans. The evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The factors supporting the allowance for loan and lease losses do not diminish the fact that the entire allowance for loan and lease losses not attributable to acquired impaired loans is available to absorb losses in the loan and lease portfolios and related commitment portfolio, respectively. The allowance for loan and lease losses is subject to review by regulatory agencies during examinations and may require us to recognize adjustments to the allowance for loan and lease losses. Servicing assets —Servicing assets are recognized separately when they are acquired through sales of loans. When loans are sold with servicing rights retained, servicing assets are recorded at fair value in accordance with ASC 860. Fair value is based on market prices for comparable servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. Sales of U.S. government guaranteed loans are executed on a servicing retained basis. The standard SBA loan sale agreement is structured to provide the Company with a servicing spread paid from a portion of the interest cash flow of the loan. SBA regulations require the Company to retain a portion of the cash flow from the interest payments received for a sold loan. The USDA loan sale agreements are not standardized with respect to servicing. Note 1—Business and Summary of Significant Accounting Policies (continued) Servicing fee income, which is reported on the Consolidated Statements of Operations as loan servicing revenue, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal. Late fees and ancillary fees related to loan servicing are not material. The Company has elected the fair value measurement method and measures servicing rights at fair value at each reporting date and reports changes in fair value of servicing assets in earnings in the period in which the changes occur, and are recorded as loan servicing asset revaluation on the Consolidated Statements of Operations. The fair value of servicing rights is highly sensitive to changes in underlying assumptions. Changes in the prepayment speed and discount rate assumptions have the most significant impact on the fair value of servicing rights. Concentrations of credit risk —Most of the Company’s business activity is concentrated with customers located within its principal market areas, with the exception of government guaranteed loans and leasing activities. The Company originates commercial real estate, construction, land development and other land, commercial and industrial, residential real estate, installment and other loans, and leases. Generally, loans are secured by accounts receivable, inventory, deposit accounts, personal property or real estate. Rights to collateral vary and are legally documented to the extent practicable. The Company has a concentration in commercial real estate loans and the ability of borrowers to honor these and other contracts is dependent upon the real estate and general economic conditions within their geographic market. Transfers of financial assets —Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. The Company has assessed that partial sales of financial assets meet the definition of participating interest. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company and the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets. Gains or losses are recognized in the period of sale upon derecognition of the asset. Premises and equipment —Premises and equipment acquired through a business combination are initially stated at the acquisition date fair value less accumulated depreciation. All other premises and equipment are stated at cost less accumulated depreciation. Depreciation on premises and equipment is recognized on a straight‑line basis over their estimated useful lives ranging from three to 39 years. Land is also carried at its fair value following a business combination and is not subject to depreciation. Leasehold improvements are amortized over the shorter of the life of the related asset or expected term of the underlying lease. Gains and losses on the dispositions of premises and equipment are included in non‑interest income. Expenditures for new premises, equipment and major betterments are capitalized. Normal costs of maintenance and repairs are expensed as incurred. Long‑lived depreciable assets are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amounts may be not recoverable. Impairment exists when the undiscounted expected future cash flows of a long‑lived asset are less than its carrying value. In that event, the Company recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset based on a quoted market price, if applicable, or a discounted cash flow analysis. Impairment losses are recorded in non‑interest expense. Assets held for sale —Assets held for sale consist of former branch locations and real estate previously purchased for expansion. Assets are considered held for sale when management has approved to sell the assets following a branch closure or other events. The properties are being actively marketed and transferred to assets held for sale based at the lower of its carrying value or its fair value, less estimated costs to sell. Assets held for sale are evaluated periodically for impairment, with any impairment losses recorded in non-interest expense. Other real estate owned —Other real estate owned (“OREO”) includes real estate assets that have been acquired through, or in lieu of, loan foreclosure or repossession and are to be sold. OREO assets are initially recorded at fair value, less estimated costs to sell, of the collateral of the loan, on the date of foreclosure or repossession, establishing a new cost basis. Adjustments that reduce loan balances to fair value at the time of foreclosure or repossession are recognized as charge |
Accounting Pronouncements Recen
Accounting Pronouncements Recently Adopted or Issued | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Accounting Pronouncements Recently Adopted or Issued | Note 2—Accounting Pronouncements Recently Adopted or Issued Adopted Accounting Pronouncements The following reflect recent accounting pronouncements that have been adopted or are pending adoption by the Company. As the Company qualifies as an emerging growth company and has elected the extended transition period for complying with new or revised accounting pronouncements, it is not subject to new or revised accounting standards applicable to public companies during the extended transition period. The accounting pronouncements pending adoption below reflect effective dates for the Company as an emerging growth company with the extended transition period. Revenue from Contracts with Customers —In May 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014‑09, deferred by ASU No. 2015‑14 and clarifying standards, , which creates Topics 606 and 610 and supersedes Topic 605, Revenue Recognition. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In April 2016, FASB issued ASU No. 2016-10, . The amendments in this ASU clarify the following two aspects of Topic 606: (1) identifying performance obligations and (2) licensing implementation guidance, while retaining the related principles for those areas. In May 2016, FASB issued ASU No. 2016-12, , amending ASC Topic 606, . The amendments in this ASU affect only several narrow aspects of Topic 606. In November 2017, FASB issued ASU No. 2017-14, amending ASC Topic 606, . The ASU amends the codification to incorporate additional previously issued guidance from the SEC. The SEC issued SAB 116 to bring existing SEC staff guidance into conformity with the FASB’s adoption of and amendments to ASC Topic 606. In general, the new guidance requires companies to use more judgment and make more estimates than under current guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The new authoritative guidance was initially effective for reporting periods after January 1, 2017 but was deferred to January 1, 2018. Given our emerging growth status, the Company adopted this new guidance on January 1, 2019 using the full retrospective method, meaning the standard is applied to all periods presented in the financial statements with the cumulative effect of initially applying the standard recognized at the beginning of the earliest period presented. The majority of the Company’s revenue streams, including interest and dividend income, servicing fees, and gains on sales of loans and investments, are outside the scope of Topic 606. Revenue streams reported as fees and service charges on deposits, ATM and interchange fees, and wealth management and trust income are within the scope of Topic 606. The Company applied the requirements of Topic 606 to the revenue streams that are within its scope. The adoption of Topic 606 did not result in any changes in the either timing or amount of recognized; there was no cumulative effect adjustment to opening retained earnings as no material changes were identified in the timing of revenue recognition. However, the presentation of certain costs associated with our ATM and debit card income were offset against ATM and interchange income. This change in presentation resulted in $1.5 million of expenses for the year ended December 31, 2019, being netted against ATM and interchange fees and reported in non-interest income instead of as other non-interest expense in non-interest expense. In addition, to conform to the current period presentation, $1.1 million and $1.0 million of related expenses for the years ended December 31, 2018 and 2017, respectively, were reclassified from other non-interest expense in non-interest expense to being netted against ATM and interchange fees in non-interest income. The Company elected to apply the practical expedient and therefore does not disclose information about remaining performance obligations that have an original expected term of one year or less and allows the Company to expense costs related to obtaining a contract as incurred when the amortization period would have been one year or less. Note 2—Recently Issued Accounting Pronouncements (continued) The Company adopted ASU 2014-09 using the full retrospective approach. The following table presents the impact of adopting the new revenue standard on our Consolidated Statements of Operations for the periods presented (in thousands): For the Year Ended December 31, 2019 2018 2017 As Reported Balance without Adoption of ASC 606 Effect of Change As Reported Balance without Adoption of ASC 606 Effect of Change As Reported Balance without Adoption of ASC 606 Effect of Change Non-interest income: ATM and interchange fees $ 3,785 $ 5,306 $ (1,521 ) $ 4,313 $ 5,426 $ (1,113 ) $ 4,812 $ 5,840 $ (1,028 ) Non-interest expense: Other non-interest expense $ 11,034 $ 12,555 $ (1,521 ) $ 9,501 $ 10,614 $ (1,113 ) $ 7,824 $ 8,852 $ (1,028 ) Fees and service charges on deposits: Fees and service charges on deposits include transaction and non-transaction based deposit fees. Transaction based fees on deposit accounts are charged to deposit customers for specific services provided to the customer. These fees include such items as wire fees, official check fees, and overdraft fees. These are contracts specific to each individual transaction and do not extend beyond the individual transaction. The performance obligation is completed and the fees are recognized at the time the specific transactional service is provided to the customer. Non-transactional deposit fees are typically monthly account maintenance fees charged on deposit accounts. These are day-to-day contracts that can be cancelled by either party without notice. The performance obligation is satisfied and the fees are recognized on a monthly basis after the service period is completed. ATM and interchange fees: ATM fees represent fees earned when a foreign debit or ATM card is used in a Byline Bank ATM. These fees are assessed and paid at the time of each transaction as the performance obligation is satisfied, which is at the point in time that the transaction is performed and approved. Interchange fees represent fees earned when a debit card issued by the Bank is used to purchase goods or services at a merchant. The merchant's bank pays the Bank a default interchange rate set by MasterCard on a transaction by transaction basis. Interchange fees are assessed as the performance obligation is satisfied, which is at the point in time the card transaction is authorized. The performance obligation is satisfied and the fees are earned when the cost of the transaction is charged to the Bank cardholders’ card. Direct expenses associated with ATM and debit cards are recorded as a net reduction against the ATM and interchange income. Wealth management and trust income: Wealth management and trust income represents fees earned by the Bank for discretionary investment management, trust administration, fiduciary and/or custody services rendered. Fees vary and are based on a contract with the customer. Fee income is determined as a percentage of assets under management and is recognized over the period the underlying account is serviced. Although some trust appointments can last for generations, most contracts are generally cancellable at any time, with the customer subject to a pro-rated fee in the month of termination. Note 2—Recently Issued Accounting Pronouncements (continued) Recognition and Measurement of Financial Assets and Financial Liabilities —In January 2016, FASB issued ASU No. 2016‑01, . The amendments in this ASU require equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value under certain circumstances and require enhanced disclosures about those investments. The amendments simplify the impairment assessment of equity investments without readily determinable fair values. The amendments also eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The amendments require entities to adjust fair value disclosures for financial instruments to be reflected at an exit price. The amendments in this ASU require separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument‑specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This amendment excludes from net income gains or losses that the entity may not realize because those financial liabilities are not usually transferred or settled at their fair values before maturity. The amendments in this ASU require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial statements. The Company adopted the provisions of ASU No. 2016-01 as of January 1, 2019. The adoption of this ASU resulted in the Company reclassifying $1.4 million from other comprehensive income to retained earnings, representing the unrealized gain, net of tax, on available-for-sale for sale equity securities at the date of adoption. The provisions of ASU No. 2016-01 require any future changes in fair value of equity securities to be recorded in the Consolidated Statements of Operations which could result in additional volatility in non-interest income. At December 31, 2018, the Company held $6.6 million of available-for-sale equity investment securities, which were previously reported as available-for-sale securities, at fair value, and are now reported as equity and other securities, at fair value. In addition, the adoption of this ASU resulted in changing how the Company estimates the fair value of portfolio loans and leases for disclosure purposes. Fair values are estimated first by stratifying the portfolios of loans and leases with similar financial characteristics. Loans and leases are segregated by type such as commercial real estate, residential mortgage, construction, land, and development, commercial and industrial, consumer and other. Each loan and lease category is further segmented into fixed- and adjustable-rate interest terms. An estimate of fair value is then calculated based on discounted cash flows using as a discount rate based on the current rate offered on similar products, plus an adjustment for liquidity to reflect the non-homogeneous nature of the loans and leases, as well as a quarterly loss rate based on historical losses to arrive at an estimated exit price fair value. Fair value for impaired loans and leases is also based on recent appraisals or estimated cash flows discounted using rates commensurate with risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows and discount rates are judgmentally determined using available market information and specific borrower information. Derivatives and Hedging (Topic 815) —In August 2017, FASB issued ASU No. 2017-12, . The amendments in this ASU better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The Company adopted the provisions of ASU No. 2017-12 on January 1, 2019. Upon adoption, the Company elected to reclassify $94.8 million of securities held-to-maturity to securities available-for-sale, which did not impact on the Consolidated Statements of Operations. Note 2—Recently Issued Accounting Pronouncements (continued) Compensation—Stock Compensation (Topic 718) —In May 2017, the FASB issued ASU 2017-09, . The amendments in the ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all of the following are met: (1) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified, (3) the classification of the modified award is an equity instrument or liability instrument is the same as the classification of the original award immediately before the original award is modified. The amendments are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued. The amendments should be applied prospectively to an award modified on or after the adoption date. Given our emerging growth status, t he Company adopted the provisions of ASU No. 2017-09 on January 1, 2019, which did not have a material impact on the Company’s Consolidated Financial Statements. Statement of Cash Flows (Topic 230) —In August 2016, FASB issued ASU No. 2016‑15, . There is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230 and other Topics. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. Those eight issues are (1) debt prepayment or debt extinguishment costs, (2) settlement of zero‑coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from the settlement of corporate‑owned life insurance policies, including bank‑owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transactions, and (8) separately identifiable cash flows and application of the predominance principle. Current GAAP either is unclear or does not include specific guidance on these eight cash flow classification issues. These amendments provide guidance for each of the eight issues, thereby reducing current and potential future diversity in practice. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Given the Company’s emerging growth status, the new authoritative guidance will be effective for reporting periods after January 1, 2019. The Company adopted the provisions of ASU No. 2016-15 on January 1, 2019, which did not have a material impact on the Company’s Consolidated Financial Statements. In November 2016, the FASB issued ASU No. 2016‑18, Statement of Cash Flows (Topic 230), Restricted Cash he Company adopted Business Combinations (Topic 805) —In January 2017, the FASB issued ASU No. 2017‑01, . The guidance clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. This guidance is effective for annual and interim periods beginning after December 15, 2017. Given our emerging growth status, the Company adopted the provisions of ASU No. 2017-01 on January 1, 2019, which did not have a material impact on the Company’s Consolidated Financial Statements. Note 2—Recently Issued Accounting Pronouncements (continued) Issued Accounting Pronouncements Pending Adoption Leases (Topic 842) —In February 2016, FASB issued ASU No. 2016‑02, . The amendments in this ASU require lessees to recognize the following for all leases (with the exception of short-term) at the commencement date: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The amendments in this ASU leave lessor accounting largely unchanged, although certain targeted improvements were made to align lessor accounting with the lessee accounting model. This ASU simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is evaluating the new guidance and its impact on the Company’s Consolidated Statements of Operations and Consolidated Statements of Financial Condition. In November 2019, FASB issued ASU No. 2019-10, , which delays the effective date of this ASU for entities not classified as Public Business Entities (PBEs). Our status as an emerging growth company makes us eligible for this deferral. Assuming the Company remains an emerging growth company, the new authoritative guidance is effective for fiscal years beginning after December 15, 2020, and interim periods with fiscal years beginning after December 15, 2021. The Company expects an increase in assets and liabilities as a result of recognizing additional right-of-use assets and liabilities under lease contracts in which the Company is lessee. While the Company has not quantified the impact of this ASU on its direct financing lease portfolio, it does not expect a material change in its accounting for the initial direct costs related to these leases. Financial Instruments—Credit Losses (Topic 326) —In June 2016, FASB issued ASU No. 2016‑13, . Current GAAP requires an “incurred loss” methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU require a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses will be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be more useful to users of the financial statements. In November 2019, FASB issued ASU No. 2019-10, , which delays the effective date of the ASU for entities not classified as PBEs. Assuming the Company remains an emerging growth company, the new authoritative guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is in process of implementation and determining the impact that this ASU will have on the Company’s Consolidated Financial Statements. Note 2—Recently Issued Accounting Pronouncements (continued) Nonrefundable Fees and Other Costs (Subtopic 310‑20) —In March 2017, FASB issued ASU No. 2017‑08, . The amendments in the ASU shorten the amortization period for certain callable debt securities held at a premium at the earliest call date. Under current GAAP, the Company amortizes the premium as an adjustment of yield over the contractual life of the instrument. As a result, upon exercise of a call on a callable debt security held at a premium, the unamortized premium is charged to earnings. The ASU shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. However, the amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is required to apply the amendments on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Assuming the Company remains an emerging growth company, the new authoritative guidance will be effective for reporting periods after January 1, 2020. The provisions of ASU No. 2017-08 will not have a material impact on the Company’s Consolidated Financial Statements. Income Taxes (Topic 740) —In December 2019, FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes . The amendments in the ASU simplify the accounting for income taxes by removing the following: the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items; the exception to the requirement to or not to recognize a deferred tax liability for a foreign entity when it becomes an equity method investment or it becomes a subsidiary, respectively; and the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in the ASU changes current authoritative guidance by requiring the recognition of franchise tax that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; requiring an evaluation when a step up in the tax basis of goodwill should be considered part the of business combination; specifying that it is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements; and requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The amendments are effective for annual periods beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022. Early adoption is permitted. Assuming the Company remains an emerging growth company, the new authoritative guidance will be effective for reporting periods after January 1, 2022. The Company is currently evaluating the provisions of ASU No. 2019-12 to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements. |
Acquisition of a Business
Acquisition of a Business | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition of a Business | Note 3—Acquisition of a Business On April 30, 2019, the Company acquired all of the outstanding common stock of Oak Park River Forest Bankshares, Inc. (“Oak Park River Forest”) and its subsidiary pursuant to an Agreement and Plan of Merger, dated as of October 17, 2018 (the “OPRF Merger Agreement”). Oak Park River Forest operated one wholly owned subsidiary, Community Bank of Oak Park River Forest. Oak Park River Forest was merged with and into Byline. As a result of the merger, Oak Park River Forest’s subsidiary bank, Community Bank of Oak Park River Forest, was merged with and into Byline Bank, with Byline Bank as the surviving bank. The acquisition improves the Company’s footprint in the Chicagoland market, diversifies its commercial banking business, and strengthens the core deposit base. At the effective time of the merger (the “OPRF Effective Time”), each share of Oak Park River Forest’s common stock was converted into the right to receive: (1) 7.9321 shares of Byline’s common stock, and (2) an amount in cash equal to $6.2 million divided by the number of outstanding shares of Oak Park River Forest common stock as of the closing date, with cash paid in lieu of any fractional shares. The per share cash consideration was based on the total $6.2 million divided by the outstanding shares of Oak Park River Forest common stock, or $33.375 per outstanding share. Based on the closing price of the Company’s common stock of $20.02, as reported by the New York Stock Exchange, and 1,464,558 shares of common stock issued with respect to the outstanding shares of Oak Park River Forest common stock, the stock consideration was valued at $29.3 million. Options to acquire 35,870 shares of Oak Park River Forest common stock that were outstanding at the OPRF Effective Time were cancelled, at the option holders’ election, in exchange for a cash payment in accordance with the OPRF Merger agreement of $4.2 million, to be paid after the closing date. The value of the total merger consideration at closing was $35.5 million before issuance costs of $585,000. The transaction resulted in goodwill of $20.2 million, which is nondeductible for tax purposes, as this acquisition was a nontaxable transaction. Goodwill represents the premium paid over the fair value of the net tangible and intangible assets acquired and reflects related synergies expected from the combined operations. The Company incurred Oak Park River Forest merger-related expenses, including acquisition advisory expenses, of $2.3 million for the year ended December 31, 2019. Core system conversion expenses related to the Oak Park River Forest acquisition were $2.0 million for year ended December 31, 2019 and $335,000 for the year ended December 31, 2018. These expenses are reflected in non-interest expense on the Consolidated Statements of Operations. The acquisition of Oak Park River Forest was accounted for using the acquisition method of accounting in accordance with ASC Topic 805. Assets acquired, liabilities assumed and consideration exchanged were recorded at their respective acquisition date fair values. Determining the fair value of assets and liabilities involves significant judgment regarding methods and assumptions used to calculate estimated fair values. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding the closing date fair values become available. On May 31, 2018, the Company acquired all of the outstanding common stock of First Evanston Bancorp, Inc. (“First Evanston”) and its subsidiaries pursuant to an Agreement and Plan of Merger, dated as of November 27, 2017 (the “Merger Agreement”). First Evanston operated two wholly owned subsidiaries, First Bank & Trust and First Evanston Bancorp Trust I. First Evanston was merged with and into Byline. As a result of the merger, First Evanston’s subsidiary bank, First Bank & Trust, was merged with and into Byline Bank, with Byline Bank as the surviving bank. The acquisition improves the Company’s footprint in the Chicagoland market, diversifies its commercial banking business, and strengthens the core deposit base. Note 3—Acquisition of a Business (continued) At the effective time of the merger (the “Effective Time”), each share of First Evanston’s common stock was converted into the right to receive: (1) 3.994 shares of Byline’s common stock, and (2) an amount in cash equal to $27.0 million divided by the number of outstanding shares of First Evanston common stock as of the closing date, with cash paid in lieu of any fractional shares. The per share cash consideration was based on the total $27.0 million divided by the outstanding shares of First Evanston common stock, or $16.136 per outstanding share. Based on the closing price of the Company’s common stock of $21.62, as reported by the New York Stock Exchange, and 6,682,850 shares of common stock issued with respect to the outstanding shares of First Evanston common stock, the stock consideration was valued at $144.5 million. Options to acquire 144,090 shares of First Evanston common stock that were outstanding at the Effective Time were converted into options to acquire 680,787 shares of Byline common stock, resulting in a consideration value of $7.6 million. The value of the total merger consideration at closing was $179.1 million before issuance costs of $852,000. The transaction resulted in goodwill of $73.6 million, which is nondeductible for tax purposes, as this acquisition was a nontaxable transaction. Goodwill represents the premium paid over the fair value of the net tangible and intangible assets acquired and reflects related synergies expected from the combined operations. The Company incurred First Evanston merger-related expenses, including acquisition advisory expenses, of $1.7 million and $1.3 million for the years ended December 31, 2018 and 2017, respectively. Core system conversion expenses related to the First Evanston acquisition were $2.0 million and $9.8 million for the years ended December 31, 2019 and 2018, respectively. These expenses are reflected in non-interest expense on the Consolidated Statements of Operations. The acquisition of First Evanston was accounted for using the acquisition method of accounting in accordance with ASC Topic 805. Assets acquired, liabilities assumed and consideration exchanged were recorded at their respective acquisition date fair values. Determining the fair value of assets and liabilities involves significant judgment regarding methods and assumptions used to calculate estimated fair values. The fair value adjustments associated with this transaction were finalized during the fourth quarter of 2018. Note 3—Acquisition of a Business (continued) The following table presents a summary of the estimated fair values of assets acquired and liabilities assumed as of the acquisition date: Preliminary Estimates April 30, 2019 Oak Park River Forest May 31, 2018 First Evanston Assets Cash and cash equivalents $ 10,469 $ 47,378 Securities available-for-sale 30,343 128,063 Restricted stock 414 1,360 Loans 257,423 916,011 Premises and equipment 3,488 15,890 Other real estate owned 2,201 — Other intangible assets 6,220 22,276 Bank-owned life insurance 3,485 — Deferred tax assets, net 5,925 2,302 Other assets 1,231 8,845 Total assets acquired 321,199 1,142,125 Liabilities Deposits 290,171 1,022,268 Line of credit 5,655 — Federal Home Loan Bank advances 5,300 — Junior subordinated debentures — 8,497 Accrued expenses and other liabilities 4,766 5,844 Total liabilities assumed 305,892 1,036,609 Net assets acquired $ 15,307 $ 105,516 Consideration paid Common stock (2019 - 1,464,558 shares issued at $20.02 per share, 2018 - 6,682,850 shares issued at $21.62 per share) 29,320 144,483 Outstanding stock options converted to Byline stock options — 7,644 Cash paid 6,163 27,004 Total consideration paid 35,483 179,131 Goodwill $ 20,176 $ 73,615 The following table presents the acquired non-impaired loans as of the acquisition date: Preliminary Estimates April 30, 2019 Oak Park River Forest May 31, 2018 First Evanston Fair value $ 204,496 $ 890,986 Gross contractual amounts receivable 254,755 1,057,374 Estimate of contractual cash flows not expected to be collected (1) 12,987 36,544 Estimate of contractual cash flows expected to be collected 241,768 1,020,830 (1) Includes interest payments not expected to be collected due to loan prepayments as well as principal and interest payments not expected to be collected due to customer default. The discount on the acquired non-impaired loans is being accreted into income over the life of the loans on an effective yield basis. Note 3—Acquisition of a Business (continued) The fair value estimates for the acquisition of Oak Park River Forest were adjusted during the fourth quarter of 2019. Compared to previously reported balances, the fair value estimates of loans and other assets decreased by $3.7 million and $25,000, respectively, which increased the deferred tax asset by $1.0 million and goodwill by $2.7 million as of December 31, 2019. The following table provides the pro forma information for the results of operations for the years ended December 31, 2019 and 2018, as if the acquisitions had occurred on January 1, 2018. The pro forma results combine the historical results of First Evanston and Oak Park River Forest into the Company’s Consolidated Statements of Operations, including the impact of certain acquisition accounting adjustments, which includes loan discount accretion, intangible assets amortization, deposit premium accretion and borrowing net discount amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisitions actually occurred on January 1, 2018. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. The acquisition-related expenses that have been recognized are included in net income in the following table. Years ended December 31, 2019 2018 Total revenues (net interest income and non-interest income) $ 272,081 $ 274,108 Net income 57,797 61,356 Earnings per share—basic 1.47 1.61 Earnings per share—diluted 1.45 1.57 The operating results of the Company include the operating results produced by the acquired assets and assumed liabilities of First Evanston for the period beginning June 1, 2018 through December 31, 2019, and Oak Park River Forest for the period beginning May 1, 2019 through December 31, 2019. Revenues and earnings of the acquired companies since their respective acquisition dates have not been disclosed as it is not practicable as First Evanston and Oak Park River Forest were merged into the Company and separate financial information is not readily available. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | Note 4—Securities The following tables summarize the amortized cost and fair values of securities available-for-sale, securities held-to-maturity and equity and other securities at December 31, 2019 and 2018 and the corresponding amounts of gross unrealized gains and losses: 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale U.S. Treasury Notes $ 41,403 $ 427 $ — $ 41,830 U.S. Government agencies 165,162 542 (754 ) 164,950 Obligations of states, municipalities, and political subdivisions 92,806 2,075 (49 ) 94,832 Residential mortgage-backed securities Agency 490,427 2,163 (2,354 ) 490,236 Non-agency 109,501 593 (272 ) 109,822 Commercial mortgage-backed securities Agency 159,650 1,092 (1,041 ) 159,701 Non-agency 31,144 130 — 31,274 Corporate securities 48,796 571 (37 ) 49,330 Asset-backed securities 44,515 — (198 ) 44,317 Total $ 1,183,404 $ 7,593 $ (4,705 ) $ 1,186,292 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Held-to-maturity Obligations of states, municipalities, and political subdivisions $ 4,412 $ 86 $ — $ 4,498 Total $ 4,412 $ 86 $ — $ 4,498 Note 4—Securities (continued) 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale U.S. Treasury Notes $ 52,775 $ 81 $ (189 ) $ 52,667 U.S. Government agencies 187,427 367 (1,296 ) 186,498 Obligations of states, municipalities, and political subdivisions 60,686 133 (586 ) 60,233 Residential mortgage-backed securities Agency 284,038 101 (11,176 ) 272,963 Non-agency 84,998 199 (1,576 ) 83,621 Commercial mortgage-backed securities Agency 93,543 55 (3,164 ) 90,434 Non-agency 31,458 — (1,000 ) 30,458 Corporate securities 34,716 67 (610 ) 34,173 Other securities 4,613 2,127 (131 ) 6,609 Total $ 834,254 $ 3,130 $ (19,728 ) $ 817,656 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Held-to-maturity Obligations of states, municipalities, and political subdivisions $ 23,835 $ 40 $ (210 ) $ 23,665 Residential mortgage-backed securities Agency 40,082 93 (531 ) 39,644 Non-agency 35,349 — (919 ) 34,430 Total $ 99,266 $ 133 $ (1,660 ) $ 97,739 The Company did not classify securities as trading during 2019 and 2018. The Company adopted the provisions of ASU No. 2016-01 as of January 1, 2019. The adoption of this ASU resulted in the reclassification of available-for-sale equity securities, at fair value to a separate line item on the Company’s Consolidated Statements of Financial Condition, and the reclassification of $1.4 million from other comprehensive income to retained earnings, representing the net unrealized gain, net of tax, on available-for-sale for sale equity securities at the date of adoption. At December 31, 2018, the Company held $6.6 million of equity investment securities which were reported as available-for-sale securities, at fair value, and are now reported as equity and other securities, at fair value. Additionally, the Company adopted the provisions of ASU No. 2017-12 on January 1, 2019, and elected to reclassify $94.8 million of securities held-to-maturity to securities available-for-sale, which did not impact the Consolidated Statements of Operations. Note 4—Securities (continued) Gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2019 and 2018 are summarized as follows: Less than 12 Months 12 Months or Longer Total 2019 # of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-sale U.S. Government agencies 8 $ 49,318 $ (662 ) $ 20,283 $ (92 ) $ 69,601 $ (754 ) Obligations of states, municipalities and political subdivisions 7 13,309 (45 ) 1,419 (4 ) 14,728 (49 ) Residential mortgage-backed securities Agency 50 132,703 (666 ) 193,363 (1,688 ) 326,066 (2,354 ) Non-agency 9 36,902 (206 ) 10,126 (66 ) 47,028 (272 ) Commercial mortgage-backed securities Agency 13 67,649 (563 ) 32,678 (478 ) 100,327 (1,041 ) Corporate securities 4 6,103 (37 ) — — 6,103 (37 ) Asset-backed securities 8 37,738 (198 ) — — 37,738 (198 ) Total 99 $ 343,722 $ (2,377 ) $ 257,869 $ (2,328 ) $ 601,591 $ (4,705 ) Less than 12 Months 12 Months or Longer Total 2018 # of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-sale U.S. Treasury Notes 18 $ 23,835 $ (52 ) $ 9,865 $ (137 ) $ 33,700 $ (189 ) U.S. Government agencies 25 43,487 (80 ) 50,101 (1,216 ) 93,588 (1,296 ) Obligations of states, municipalities and political subdivisions 56 13,926 (97 ) 18,563 (489 ) 32,489 (586 ) Residential mortgage-backed securities Agency 42 4,288 (45 ) 254,121 (11,131 ) 258,409 (11,176 ) Non-agency 8 59,107 (1,378 ) 4,009 (198 ) 63,116 (1,576 ) Commercial mortgage-backed securities Agency 9 21,356 (447 ) 52,640 (2,717 ) 73,996 (3,164 ) Non-agency 5 — — 30,458 (1,000 ) 30,458 (1,000 ) Corporate securities 15 25,762 (342 ) 4,642 (268 ) 30,404 (610 ) Other securities 1 — — 2,844 (131 ) 2,844 (131 ) Total 179 $ 191,761 $ (2,441 ) $ 427,243 $ (17,287 ) $ 619,004 $ (19,728 ) Note 4—Securities (continued) Less than 12 Months 12 Months or Longer Total 2018 # of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Held-to-maturity Obligations of states, municipalities, and political subdivisions 23 $ 8,127 $ (58 ) $ 8,792 $ (152 ) $ 16,919 $ (210 ) Residential mortgage-backed securities Agency 16 6,625 (150 ) 21,139 (381 ) 27,764 (531 ) Non-agency 7 21,499 (503 ) 12,931 (416 ) 34,430 (919 ) Total 46 $ 36,251 $ (711 ) $ 42,862 $ (949 ) $ 79,113 $ (1,660 ) Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. The Company evaluated the securities which had an unrealized loss for other than temporary impairment and determined all declines in value to be temporary. There were 99 securities available-for-sale with unrealized losses at December 31, 2019, compared to 179 at December 31, 2018. There were no securities held-to-maturity with unrealized losses at December 31, 2019, compared to 46 at December 31, 2018. The Company anticipates full recovery of amortized cost with respect to these securities by maturity, or sooner, in the event of a more favorable market interest rate environment. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity. The proceeds from all sales and calls of securities were available-for-sale, and the associated gains and losses for the years ended December 31, 2019, 2018, and 2017 are listed below: 2019 2018 2017 Proceeds $ 92,103 $ 5,134 $ 8 Gross gains 1,274 164 8 Gross losses 123 — — Securities pledged at December 31, 2019 and 2018 had carrying amounts of $301.1 million and $244.7 million, respectively. At December 31, 2019 and 2018, of those pledged, the carrying amounts of securities pledged as collateral for public fund deposits were $240.4 million and $197.8 million, respectively, and for customer repurchase agreements of $55.7 million and $46.9 million, respectively. At December 31, 2019 and 2018, there were no securities pledged for advances from the Federal Home Loan Bank. Other securities were pledged for derivative positions, letters of credit and for purposes required or permitted by law. 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 stockholders’ equity. Note 4—Securities (continued) At December 31, 2019, the amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Available-for-sale Due in one year or less $ 51,901 $ 52,093 Due from one to five years 99,605 100,593 Due from five to ten years 136,479 137,843 Due after ten years 104,697 104,730 Mortgage and asset-backed securities 790,722 791,033 Total $ 1,183,404 $ 1,186,292 Held-to-maturity Due from one to five years $ 3,800 $ 3,866 Due from five to ten years 612 632 Total $ 4,412 $ 4,498 |
Loans and Lease Receivables
Loans and Lease Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans and Lease Receivables | Note 5—Loans and Lease Receivables Outstanding loan and lease receivables as of December 31, 2019 and 2018 were categorized as follows: 2019 2018 Commercial real estate $ 1,275,058 $ 1,261,594 Residential real estate 711,499 704,899 Construction, land development, and other land 279,403 186,258 Commercial and industrial 1,330,418 1,145,240 Installment and other 6,484 13,675 Lease financing receivables 177,774 187,797 Total loans and leases 3,780,636 3,499,463 Net unamortized deferred fees and costs 2,289 (1,293 ) Initial direct costs 2,736 3,456 Allowance for loan and lease losses (31,936 ) (25,201 ) Net loans and leases $ 3,753,725 $ 3,476,425 2019 2018 Lease financing receivables Net minimum lease payments $ 193,359 $ 204,646 Unguaranteed residual values 1,347 1,535 Unearned income (16,932 ) (18,384 ) Total lease financing receivables 177,774 187,797 Initial direct costs 2,736 3,456 Lease financial receivables before allowance for lease losses $ 180,510 $ 191,253 Total loans and leases consist of originated loans and leases, acquired impaired loans, and acquired non-impaired loans and leases. At December 31, 2019 and 2018, total loans and leases included the guaranteed amount of U.S. government guaranteed loans of $119.8 million and $108.7 million, respectively. At December 31, 2019 and 2018, installment and other loans included overdraft deposits of $852,000 and $1.7 million, respectively, which were reclassified as loans. At December 31, 2019 and 2018, loans and loans held for sale pledged as security for borrowings were $1.8 billion and $1.4 billion, respectively. The minimum annual lease payments for lease financing receivables as of December 31, 2019 are summarized as follows: Minimum Lease Payments 2020 $ 71,820 2021 55,396 2022 37,696 2023 20,466 2024 7,475 Thereafter 506 Total $ 193,359 Note 5—Loans and Lease Receivables (continued) Originated loans and leases represent originations excluding loans initially acquired in a business combination. However, once an acquired non-impaired loan reaches its maturity date, and is re-underwritten and renewed, it is internally classified as an originated loan. Acquired impaired loans are loans acquired from a business combination with evidence of credit quality deterioration and are accounted for under ASC Topic 310-30. Acquired non-impaired loans and leases represent loans and leases acquired from a business combination without more than insignificant evidence of credit quality deterioration and are accounted for under ASC Topic 310-20. Acquired leases and revolving loans having evidence of credit quality deterioration do not qualify to be accounted for as acquired impaired loans and are accounted for under ASC Topic 310-20. The following tables summarize the balances for each respective loan and lease category as of December 31, 2019 and 2018: 2019 Originated Acquired Impaired Acquired Non- Impaired Total Commercial real estate $ 792,263 $ 135,914 $ 348,365 $ 1,276,542 Residential real estate 483,072 100,223 128,527 711,822 Construction, land development, and other land 235,794 5,373 37,490 278,657 Commercial and industrial 1,160,996 16,909 153,660 1,331,565 Installment and other 5,372 249 944 6,565 Lease financing receivables 158,155 — 22,355 180,510 Total loans and leases $ 2,835,652 $ 258,668 $ 691,341 $ 3,785,661 2018 Originated Acquired Impaired Acquired Non- Impaired Total Commercial real estate $ 652,234 $ 146,808 $ 462,565 $ 1,261,607 Residential real estate 466,309 113,934 124,659 704,902 Construction, land development, and other land 144,128 3,779 37,442 185,349 Commercial and industrial 803,508 12,617 328,672 1,144,797 Installment and other 11,718 404 1,596 13,718 Lease financing receivables 159,901 — 31,352 191,253 Total loans and leases $ 2,237,798 $ 277,542 $ 986,286 $ 3,501,626 Acquired impaired loans —As part of the Oak Park River Forest acquisition, the Bank acquired impaired loans in the amount of $52.9 million. As part of the First Evanston acquisition, the Bank acquired impaired loans that are accounted for under ASC 310‑30 in the amount of $25.0 million. Refer to Note 3—Acquisition of a Business for additional information regarding these transactions. There were no other acquired impaired loans purchased during 2019 or 2018. The following table presents a reconciliation of the undiscounted contractual cash flows, non‑accretable difference, accretable yield, and fair value of acquired impaired loans as of May 31, 2018 (First Evanston) and April 30, 2019 (Oak Park River Forest): Preliminary Estimates April 30, 2019 May 31, 2018 Oak Park River Forest First Evanston Undiscounted contractual cash flows $ 74,092 $ 33,594 Undiscounted cash flows not expected to be collected (non-accretable difference) (11,401 ) (5,003 ) Undiscounted cash flows expected to be collected 62,691 28,591 Accretable yield at acquisition (9,764 ) (3,566 ) Estimated fair value of impaired loans acquired at acquisition $ 52,927 $ 25,025 Note 5—Loans and Lease Receivables (continued) The outstanding balance and carrying amount of all acquired impaired loans are summarized below. The balances do not include an allowance for loan and lease losses of $2.8 million and $2.7 million, at December 31, 2019 and 2018, respectively. 2019 2018 Outstanding Balance Carrying Value Outstanding Balance Carrying Value Commercial real estate $ 189,969 $ 135,914 $ 216,137 $ 146,808 Residential real estate 151,641 100,223 173,962 113,934 Construction, land development, and other land 14,841 5,373 11,962 3,779 Commercial and industrial 23,330 16,909 24,972 12,617 Installment and other 1,099 249 1,735 404 Total acquired impaired loans $ 380,880 $ 258,668 $ 428,768 $ 277,542 The following table summarizes the changes in accretable yield for acquired impaired loans for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Beginning balance $ 37,115 $ 36,446 $ 36,868 Additions 9,764 3,566 — Accretion to interest income (24,535 ) (23,982 ) (24,597 ) Reclassification from nonaccretable difference 17,665 21,085 24,175 Ending balance $ 40,009 $ 37,115 $ 36,446 Acquired non‑impaired loans and leases — The Company acquired non-impaired loans as part of the Oak Park River Forest acquisition in the amount of $204.5 million. The Company acquired non‑impaired loans as part of the First Evanston acquisition in the amount of $891.0 million. Refer to Note 3—Acquisition of a Business for additional information regarding these transactions The unpaid principal balance and carrying value for acquired non‑impaired loans and leases at December 31, 2019 and 2018 were as follows: 2019 2018 Unpaid Principal Balance Carrying Value Unpaid Principal Balance Carrying Value Commercial real estate $ 356,787 $ 348,365 $ 473,262 $ 462,565 Residential real estate 130,412 128,527 127,478 124,659 Construction, land development, and other land 38,416 37,490 38,494 37,442 Commercial and industrial 159,599 153,660 344,879 328,672 Installment and other 971 944 1,831 1,596 Lease financing receivables 23,976 22,355 32,977 31,352 Total acquired non-impaired loans and leases $ 710,161 $ 691,341 $ 1,018,921 $ 986,286 |
Allowance for Loan and Lease Lo
Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments | Note 6—Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments Loans and leases considered for inclusion in the allowance for loan and lease losses include acquired non-impaired loans and leases, those acquired impaired loans with credit deterioration after acquisition, and originated loans and leases. Although all acquired loans and leases are included in the following table, only those with credit deterioration subsequent to acquisition date are actually included in the allowance for loan and lease losses. The following tables summarize the balance and activity within the allowance for loan and lease losses, the components of the allowance for loan and lease losses in terms of loans and leases individually and collectively evaluated for impairment, and corresponding loan and lease balances by type for the years ended December 31, 2019, 2018, and 2017 are as follows: 2019 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Allowance for loan and lease losses Beginning balance $ 7,540 $ 1,751 $ 466 $ 12,932 $ 49 $ 2,463 $ 25,201 Provision 4,805 67 144 14,460 15 1,217 20,708 Charge-offs (4,950 ) (113 ) — (8,171 ) (16 ) (2,609 ) (15,859 ) Recoveries 570 285 — 156 2 873 1,886 Ending balance $ 7,965 $ 1,990 $ 610 $ 19,377 $ 50 $ 1,944 $ 31,936 Ending balance: Individually evaluated for impairment $ 2,614 $ 124 $ — $ 7,952 $ — $ — $ 10,690 Collectively evaluated for impairment 4,414 1,191 584 10,287 50 1,944 18,470 Loans acquired with deteriorated credit quality 937 675 26 1,138 — — 2,776 Total allowance for loan and lease losses $ 7,965 $ 1,990 $ 610 $ 19,377 $ 50 $ 1,944 $ 31,936 2019 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Loans and leases ending balance: Individually evaluated for impairment $ 26,396 $ 2,398 $ 2,644 $ 37,303 $ — $ — $ 68,741 Collectively evaluated for impairment 1,114,232 609,201 270,640 1,277,353 6,316 180,510 3,458,252 Loans acquired with deteriorated credit quality 135,914 100,223 5,373 16,909 249 — 258,668 Total loans and leases $ 1,276,542 $ 711,822 $ 278,657 $ 1,331,565 $ 6,565 $ 180,510 $ 3,785,661 Note 6—Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments (continued) 2018 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Allowance for loan and lease losses Beginning balance $ 4,794 $ 1,638 $ 222 $ 7,418 $ 41 $ 2,593 $ 16,706 Provision 4,543 113 662 12,089 68 1,320 18,795 Charge-offs (1,865 ) — (418 ) (6,944 ) (60 ) (2,517 ) (11,804 ) Recoveries 68 — — 369 — 1,067 1,504 Ending balance $ 7,540 $ 1,751 $ 466 $ 12,932 $ 49 $ 2,463 $ 25,201 Ending balance: Individually evaluated for impairment $ 2,191 $ 61 $ — $ 4,397 $ — $ — $ 6,649 Collectively evaluated for impairment 4,105 1,323 466 7,413 47 2,463 15,817 Loans acquired with deteriorated credit quality 1,244 367 — 1,122 2 — 2,735 Total allowance for loan and lease losses $ 7,540 $ 1,751 $ 466 $ 12,932 $ 49 $ 2,463 $ 25,201 2018 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Loans and leases ending balance: Individually evaluated for impairment $ 11,983 $ 2,137 $ — $ 21,794 $ — $ — $ 35,914 Collectively evaluated for impairment 1,102,816 588,831 181,570 1,110,386 13,314 191,253 3,188,170 Loans acquired with deteriorated credit quality 146,808 113,934 3,779 12,617 404 — 277,542 Total loans and leases $ 1,261,607 $ 704,902 $ 185,349 $ 1,144,797 $ 13,718 $ 191,253 $ 3,501,626 2017 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Allowance for loan and lease losses Beginning balance $ 1,945 $ 2,483 $ 742 $ 4,196 $ 334 $ 1,223 $ 10,923 Provision (release) 4,343 (405 ) (520 ) 6,058 34 3,143 12,653 Charge-offs (1,494 ) (440 ) — (2,836 ) (327 ) (3,099 ) (8,196 ) Recoveries — — — — — 1,326 1,326 Ending balance $ 4,794 $ 1,638 $ 222 $ 7,418 $ 41 $ 2,593 $ 16,706 Ending balance: Individually evaluated for impairment $ 1,101 $ 158 $ — $ 2,692 $ 14 $ — $ 3,965 Collectively evaluated for impairment 1,765 1,047 145 3,308 9 2,593 8,867 Loans acquired with deteriorated credit quality 1,928 433 77 1,418 18 — 3,874 Total allowance for loan and lease losses $ 4,794 $ 1,638 $ 222 $ 7,418 $ 41 $ 2,593 $ 16,706 Note 6—Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments (continued) 2017 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Loans and leases ending balance: Individually evaluated for impairment $ 13,884 $ 2,429 $ — $ 14,784 $ 14 $ — $ 31,111 Collectively evaluated for impairment 711,097 430,227 99,483 496,446 3,752 177,686 1,918,691 Loans acquired with deteriorated credit quality 166,712 144,562 5,946 10,008 462 — 327,690 Total loans and leases $ 891,693 $ 577,218 $ 105,429 $ 521,238 $ 4,228 $ 177,686 $ 2,277,492 The Company increased the allowance for loan and lease losses by $6.7 million, $8.5 million, and $5.8 million for the years ended December 31, 2019, 2018, and 2017, respectively. For acquired impaired loans, the Company increased the allowance for loan and lease losses by $41,000 for the year ended December 31, 2019, decreased the allowance for loan and lease losses by $1.1 million for the year ended December 31, 2018, and increased the allowance for loan and lease losses by $2.3 million for the year ended December 31, 2017. For loans individually evaluated for impairment, the Company increased the allowance for loan and lease losses by $4.0 million, $2.7 million, and $2.9 million for the years ended December 31, 2019, 2018, and 2017, respectively. For loans collectively evaluated for impairment, the Company increased the allowance for loan and lease losses by $2.7 million, $7.0 million, and $572,000 for the years ended December 31, 2019, 2018 and 2017, respectively. The following tables summarize the recorded investment, unpaid principal balance, related allowance, average recorded investment, and interest income recognized for loans and leases considered impaired as of December 31, 2019, 2018, and 2017, which excludes acquired impaired loans: 2019 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial real estate $ 16,556 $ 19,808 $ — $ 11,218 $ 1,257 Residential real estate 2,165 2,253 — 2,285 192 Construction, land development, and other land 2,644 3,000 — 220 191 Commercial and industrial 19,211 20,398 — 14,137 1,487 With an allowance recorded Commercial real estate 9,840 10,691 2,614 8,863 711 Residential real estate 233 233 124 195 7 Commercial and industrial 18,092 19,285 7,952 14,989 1,010 Total impaired loans $ 68,741 $ 75,668 $ 10,690 $ 51,907 $ 4,855 Note 6—Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments (continued) 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial real estate $ 6,110 $ 7,693 $ — $ 8,968 $ 590 Residential real estate 1,886 1,858 — 1,917 43 Commercial and industrial 11,193 13,961 — 8,680 483 With an allowance recorded Commercial real estate 5,873 6,313 2,191 5,328 270 Residential real estate 251 253 61 311 4 Commercial and industrial 10,601 11,153 4,397 9,472 749 Installment and other — — — 11 — Total impaired loans $ 35,914 $ 41,231 $ 6,649 $ 34,687 $ 2,139 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial real estate $ 11,425 $ 12,936 $ — $ 10,482 $ 525 Residential real estate 2,075 2,046 — 1,781 72 Construction, land development and other land — — — 295 2 Commercial and industrial 5,470 6,774 — 2,875 265 With an allowance recorded Commercial real estate 2,459 2,634 1,101 1,988 187 Residential real estate 354 351 158 422 6 Construction, land development and other land — — — 14 — Commercial and industrial 9,314 9,724 2,692 3,460 486 Installment and other 14 14 14 162 12 Total impaired loans $ 31,111 $ 34,479 $ 3,965 $ 21,479 $ 1,555 For purposes of these tables, the unpaid principal balance represents the outstanding contractual balance. Impaired loans include loans that are individually evaluated for impairment as well as troubled debt restructurings for all loan categories. The sum of non‑accrual loans and loans past due 90 days still on accrual will differ from the total impaired loan amount. The Bank’s credit risk rating methodology assigns risk ratings from 1 to 10, where a higher rating represents higher risk. The risk rating categories are described by the following groupings: Pass —Ratings 1‑4 define the risk levels of borrowers and guarantors that offer a minimal to an acceptable level of risk. Watch —A watch asset (rating of 5) has credit exposure that presents higher than average risk and warrants greater than routine attention by Bank personnel due to conditions affecting the borrower, the borrower’s industry or the economic environment. Special Mention —A special mention asset (rating of 6) has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Substandard Accrual —A substandard accrual asset (rating of 7) has well‑defined weakness or weaknesses in cash flow and collateral coverage resulting in a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. This classification may be used in limited cases, where despite credit severity, the borrower is current on payments and there is an agreed plan for credit remediation. Substandard Non‑Accrual —A substandard asset (rating of 8) has well‑defined weakness or weaknesses in cash flow and collateral coverage resulting in the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Note 6—Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments (continued) Doubtful —A doubtful asset (rating of 9) has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loss —A loss asset (rating of 10) is considered uncollectible and of such little value that its continuance as a realizable asset is not warranted. The following tables summarize the risk rating categories of the loans and leases considered for inclusion in the allowance for loan and lease losses calculation, excluding acquired impaired loans, as of December 31, 2019 and 2018: 2019 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Pass $ 984,881 $ 584,363 $ 247,775 $ 1,087,856 $ 6,013 $ 177,696 $ 3,088,584 Watch 99,803 21,856 18,181 159,282 302 8 299,432 Special Mention 27,484 3,648 4,684 26,944 — 1,799 64,559 Substandard 28,460 1,732 2,644 40,574 1 728 74,139 Doubtful — — — — — 279 279 Loss — — — — — — — Total $ 1,140,628 $ 611,599 $ 273,284 $ 1,314,656 $ 6,316 $ 180,510 $ 3,526,993 2018 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Pass $ 1,009,041 $ 553,665 $ 147,123 $ 962,291 $ 9,997 $ 188,314 $ 2,870,431 Watch 76,276 29,522 31,376 112,996 3,302 80 253,552 Special Mention 17,602 5,656 3,071 34,314 — 1,794 62,437 Substandard 11,880 2,125 — 22,579 15 818 37,417 Doubtful — — — — — 247 247 Loss — — — — — — — Total $ 1,114,799 $ 590,968 $ 181,570 $ 1,132,180 $ 13,314 $ 191,253 $ 3,224,084 The following tables summarize contractual delinquency information for acquired non-impaired and originated loans and leases by category as of December 31, 2019 and 2018: 2019 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days and Accruing Non- accrual Total Past Due Current Total Commercial real estate $ 14,269 $ 5,153 $ — $ 12,274 $ 31,696 $ 1,108,932 $ 1,140,628 Residential real estate 3,187 460 — 1,371 5,018 606,581 611,599 Construction, land development, and other land — 4,460 — — 4,460 268,824 273,284 Commercial and industrial 7,789 3,594 — 22,151 33,534 1,281,122 1,314,656 Installment and other 133 2 — 1 136 6,180 6,316 Lease financing receivables 585 532 — 475 1,592 178,918 180,510 Total $ 25,963 $ 14,201 $ — $ 36,272 $ 76,436 $ 3,450,557 $ 3,526,993 Note 6—Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments (continued) 2018 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days and Accruing Non- accrual Total Past Due Current Total Commercial real estate $ 6,659 $ 2,145 $ — $ 9,484 $ 18,288 $ 1,096,511 $ 1,114,799 Residential real estate 4,488 711 — 1,815 7,014 583,954 590,968 Construction, land development, and other land — — — — — 181,570 181,570 Commercial and industrial 5,829 1,376 — 13,932 21,137 1,111,043 1,132,180 Installment and other 1,932 4 — 12 1,948 11,366 13,314 Lease financing receivables 789 530 — 591 1,910 189,343 191,253 Total $ 19,697 $ 4,766 $ — $ 25,834 $ 50,297 $ 3,173,787 $ 3,224,084 Trouble debt restructurings are granted due to borrower financial difficulty and provide for a modification of loan repayment terms. TDRs are treated in the same manner as impaired loans for purposes of calculating the allowance for loan and lease losses. The tables below present TDRs by loan category as of December 31, 2019, 2018, and 2017. Refer to Note 1—Summary of Significant Accounting Policies for the accounting policy for TDRs. 2019 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserves Accruing: Commercial real estate 5 $ 1,451 $ 1,451 $ — $ 223 Commercial and industrial 2 129 129 — 118 Residential real estate 2 191 191 — — Total accruing 9 1,771 1,771 — 341 Non-accruing: Commercial real estate 6 2,777 2,600 177 513 Commercial and industrial 11 8,048 6,096 1,952 1,312 Residential real estate 1 104 104 — — Total non-accruing 18 10,929 8,800 2,129 1,825 Total troubled debt restructurings 27 $ 12,700 $ 10,571 $ 2,129 $ 2,166 2018 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserves Accruing: Commercial real estate 4 $ 1,508 $ 1,508 $ — $ 113 Commercial and industrial 2 191 191 — 100 Residential real estate 1 114 114 — — Total accruing 7 1,813 1,813 — 213 Non-accruing: Commercial real estate 9 2,512 2,471 41 743 Commercial and industrial 6 6,714 4,843 1,871 1,290 Total non-accruing 15 9,226 7,314 1,912 2,033 Total troubled debt restructurings 22 $ 11,039 $ 9,127 $ 1,912 $ 2,246 Note 6—Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments (continued) 2017 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserves Accruing: Commercial real estate 3 $ 912 $ 912 $ — $ — Residential real estate 1 149 149 — — Total accruing 4 1,061 1,061 — — Non-accruing: Commercial real estate 2 743 743 — 111 Commercial and industrial 3 1,246 759 487 246 Residential real estate 1 67 67 — — Total non-accruing 6 2,056 1,569 487 357 Total troubled debt restructurings 10 $ 3,117 $ 2,630 $ 487 $ 357 In addition, there was a $500,000 commitment outstanding on troubled debt restructurings at December 31, 2019 and 2018. There were no commitments outstanding on troubled debt restructurings at December 31, 2017. Loans modified as troubled debt restructurings that occurred during the years ended December 31, 2019, 2018, and 2017: For the Year Ended December 31, 2019 2018 2017 Accruing: Beginning balance $ 1,813 $ 1,061 $ 602 Additions 113 37 1,017 Net payments (940 ) (86 ) (144 ) Net transfers from (to) non-accrual 785 801 (414 ) Ending balance 1,771 1,813 1,061 Non-accruing: Beginning balance 7,314 1,569 552 Additions 5,254 8,408 681 Net payments (2,310 ) (1,718 ) (78 ) Charge-offs (673 ) (144 ) — Net transfers from (to) accrual (785 ) (801 ) 414 Ending balance 8,800 7,314 1,569 Total troubled debt restructurings $ 10,571 $ 9,127 $ 2,630 Troubled debt restructurings that subsequently defaulted within twelve months of the restructure date during the years ended December 31, 2019, 2018, and 2017 had a recorded investment of $348,000, $340,000, and $144,000, respectively. The reserve for unfunded commitments was $1.2 million at December 31, 2019 and 2018. During the year ended December 31, 2019, the Company released provision for unfunded commitments of $80,000. During the years ended December 31, 2018 and 2017, the provisions for unfunded commitments were $317,000 and $162,000, respectively. There were no charge‑offs or recoveries related to the reserve for unfunded commitments during the periods. |
Servicing Assets
Servicing Assets | 12 Months Ended |
Dec. 31, 2019 | |
Transfers And Servicing [Abstract] | |
Servicing Assets | Note 7—Servicing Assets Activity for servicing assets and the related changes in fair value for the years ended December 31, 2019, 2018 and 2017 is as follows: 2019 2018 2017 Beginning balance $ 19,693 $ 21,400 $ 21,091 Additions, net 6,417 7,562 6,250 Changes in fair value (6,639 ) (9,269 ) (5,941 ) Ending balance $ 19,471 $ 19,693 $ 21,400 Loans serviced for others are not included in the Consolidated Statements of Financial Condition. The unpaid principal balances of these loans serviced for others were as follows as December 31, 2019 and 2018: 2019 2018 Loan portfolios serviced for: SBA guaranteed loans $ 1,231,959 $ 1,151,915 USDA guaranteed loans 119,047 106,184 Total $ 1,351,006 $ 1,258,099 Loan servicing revenue totaled $10.7 million, $10.3 million, and $9.6 million for the years ended December 31, 2019, 2018, and 2017, respectively. Loan servicing asset revaluation, which represents the changes in fair value of servicing assets, totaled downward valuations of $6.6 million, $9.3 million, and $5.9 million for the years ended December 31, 2019, 2018, and 2017, respectively. The fair value of servicing rights is highly sensitive to changes in underlying assumptions. Changes in prepayment speed assumptions have the most significant impact on the fair value of servicing rights. Generally, as interest rates rise on variable rate loans, loan prepayments increase due to an increase in refinance activity, which may result in a decrease in the fair value of servicing assets. Measurement of fair value is limited to the condition existing and the assumptions used as of a particular point in time, and those assumptions may change over time. Refer to Note 18—Fair Value Measurement for further details. |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Other Real Estate Owned | Note 8—Other Real Estate Owned The following table presents the change in other real estate owned (“OREO”) for the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 Beginning balance $ 5,041 $ 10,626 $ 16,570 Acquisition of OREO through business combination 2,201 — — Net additions to OREO 5,910 2,163 6,690 Proceeds from sales of OREO (3,173 ) (7,495 ) (13,898 ) Gains on sales of OREO 428 383 2,147 Valuation adjustments (511 ) (636 ) (883 ) Ending balance $ 9,896 $ 5,041 $ 10,626 At December 31, 2019 and 2018, the balance of real estate owned included $1.5 million and $838,000, respectively, of foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property. At December 31, 2019 and 2018, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process is $2.1 million and $2.3 million, respectively. Proceeds from sales of OREO include proceeds from internally financed sales of OREO of $183,000 and $444,000 for the years ended December 31, 2019 and 2018, respectively. There were no internally financed sales of OREO for the year ended December 31, 2017. |
Premises and Equipment and Asse
Premises and Equipment and Assets Held for Sale | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment and Assets Held for Sale | Note 9—Premises and Equipment and Assets Held for Sale Classifications of premises and equipment as of December 31, 2019 and 2018 and were as follows: 2019 2018 Premises $ 54,798 $ 55,112 Furniture, fixtures and equipment 16,987 13,593 Leasehold improvements 5,957 5,022 Total cost 77,742 73,727 Less accumulated depreciation and amortization (26,246 ) (22,408 ) Net book value of premises, furniture, fixtures, equipment, and leasehold improvements 51,496 51,319 Construction in progress 850 830 Land 43,794 45,531 Premises and equipment, net $ 96,140 $ 97,680 Depreciation and amortization expense related to premises and equipment for the years ended December 31, 2019, 2018, and 2017 was $6.4 million, $5.6 million and $5.2 million, respectively. Refer to Note 17—Commitments and Contingent Liabilities for additional discussion related to operating lease commitments. During 2017, the Company closed and consolidated two branches within our branch network based on a detailed assessment of the branch network and analysis of branch and market data. During 2018, an additional six branches and two other facilities were closed and consolidated, and during 2019, two additional branches were closed and consolidated. Branches owned by the Company and actively marketed for sale are transferred to assets held for sale based on the lower of carrying value or fair value, less estimated costs to sell. Assets are considered held for sale when management has approved the sale of the assets following a branch closure or other events. The following table presents the change in assets held for sale for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Beginning balance $ 14,489 $ 9,779 $ 14,748 Transfers in 2,733 9,074 3,372 Transfers out — (425 ) — Proceeds from sales (1,373 ) (4,415 ) (5,373 ) Internally financed sales — — (1,800 ) Net gains (losses) on sales 82 1,103 (217 ) Impairment loss (569 ) (627 ) (951 ) Ending balance $ 15,362 $ 14,489 $ 9,779 |
Goodwill, Core Deposit Intangib
Goodwill, Core Deposit Intangible and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill, Core Deposit Intangible and Other Intangible Assets | Note 10—Goodwill, Core Deposit Intangible and Other Intangible Assets The Company’s annual goodwill test was performed as of November 30, 2019. The Company determined that no impairment existed as of that date. Refer to Note 1—Business and Summary of Significant Accounting Policies for discussion of goodwill. The following table summarizes the changes in the Company’s goodwill and core deposit intangible assets for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Goodwill Core Intangible Customer Relationship Intangible Goodwill Core Deposit Intangible Customer Relationship Intangible Goodwill Core Deposit Intangible Customer Relationship Intangible Beginning balance $ 128,177 $ 30,360 $ 3,059 $ 54,562 $ 16,720 $ — $ 51,975 $ 19,776 $ — Additions 20,176 6,220 — 73,615 19,060 3,216 2,587 — — Amortization or accretion — (7,469 ) (268 ) — (5,420 ) (157 ) — (3,056 ) — Ending balance $ 148,353 $ 29,111 $ 2,791 $ 128,177 $ 30,360 $ 3,059 $ 54,562 $ 16,720 $ — Accumulated amortization or accretion N/A $ 26,355 $ 425 N/A $ 18,886 $ 157 N/A $ 13,466 N/A Weighted average remaining amortization or accretion period N/A 6.5 Years 10.4 Years N/A 6.8 Years 11.4 Years N/A 5.6 Years N/A Note 10—Goodwill, Core Deposit Intangible and Other Intangible Assets (continued) During 2019, the Company added additional goodwill and core deposit intangible assets in conjunction with the Oak Park River Forest acquisition. During 2018, the Company added additional goodwill, core deposit intangible assets, and customer relationship intangible assets in conjunction with the First Evanston acquisition. Please refer to Note 3—Acquisition of a Business for further details. The increase in goodwill for the year ended December 31, 2017 resulted from the Company’s acquisition of Ridgestone Financial Services, Inc. (“Ridgestone”) during 2016. Additionally, the Company had other intangible assets of $36,000 The following table presents the estimated amortization expense for core deposit intangible and other intangible assets recognized at December 31, 2019: Estimated Amortization 2020 $ 7,577 2021 7,012 2022 6,440 2023 4,336 2024 2,286 Thereafter 4,251 Total $ 31,902 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11—Income Taxes The following were the components of provision for income taxes for the years ended December 31, 2019, 2018, and 2017 2019 2018 2017 Current tax expense: Federal $ 18,976 $ — $ 1,010 State and local 2,199 1,078 1,485 Total current tax expense 21,175 1,078 2,495 Deferred tax expense (benefit): Federal (3,676 ) 11,469 13,554 State and local 2,794 2,460 686 Remeasurement of net deferred tax assets — (760 ) 2,364 Total deferred tax expense (benefit) (882 ) 13,169 16,604 Provision for income taxes $ 20,293 $ 14,247 $ 19,099 The following is a reconciliation between the statutory U.S. federal income tax rate of 21% for 2019 and 2018, and 35% for 2017, and the effective tax rate: 2019 2018 2017 Calculated tax benefit at statutory rate 21.0 % 21.0 % 35.0 % Increase (decrease) in income taxes resulting from: State taxes, net of federal income tax 5.6 7.0 6.5 Tax exempt income (0.5 ) (0.5 ) (0.7 ) Share-based compensation (0.1 ) (0.9 ) — Non-deductible expenses 0.3 0.5 0.2 Remeasurement of net deferred tax assets — (1.4 ) 5.8 Total income tax expense (benefit) 26.3 % 25.7 % 46.8 % Note 11—Income Taxes (continued) As part of a budget package passed by the Legislature of the State of Illinois, the corporate income tax rate increased from 5.25% to 7.00% effective July 1, 2017. As a result of the increase in the corporate income tax rate, we recorded a state income tax benefit of $4.8 million during 2017, primarily due to increased value of our deferred tax asset related to our Illinois net loss deduction. The Tax Cuts and Jobs Act (the “Tax Act”) was enacted on December 22, 2017, and ASC 740 required us to reflect the changes associated with the Tax Act’s provisions in the fourth quarter of 2017. The Tax Act is complex and has extensive implications for the Company’s federal and state taxes. Among other things, the Tax Act reduced the corporate federal income tax rate from 35% to 21%, effective January 1, 2018. Also on December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (SAB 118), which provides guidance on accounting for the Tax Act’s impact. SAB 118 provides a measurement period, not to extend beyond one year from the date of enactment during which a company, acting in good faith, may complete the accounting for the impacts of the Tax Act. As a result of the rate change, the Company’s net deferred tax assets were required to be revalued during the period in which the new legislation was enacted, and the Company recorded net income tax expense of $7.2 million during the fourth quarter of 2017, and recorded an additional discrete income tax benefit of $760,000 during 2018. Included in the provisional tax expense recorded for the re-measurement of the Company’s net deferred tax assets recorded in 2017 were deferred items for which the tax effects were originally established through OCI. This resulted in a disproportionate tax effect for those items still recorded in AOCI. Under GAAP as of December 31, 2017, those items would continue to be reported in AOCI until such time as the underlying transactions were settled and would then be reclassified as a component of the provision for income taxes. However, in February 2018, the FASB issued an ASU that permits entities to reclassify the tax effects stranded in AOCI as a result of the Tax Act to retained earnings. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption in any period permitted. The Company early adopted this new guidance effective January 1, 2018. The adoption did not impact the Company’s Consolidated Statements of Operations, and resulted in a reclassification of $763,000 from accumulated other comprehensive income (loss) to retained earnings. Net deferred tax assets increased to $38.3 million at December 31, 2019 compared to $35.6 million at December 31, 2018. The net increase in the total net deferred tax assets recorded as of December 31, 2019 was a result of $5.9 million in net deferred tax assets added related to the acquisition of Oak Park River Forest, offset by a decrease in net deferred tax assets related to unrealized losses on available-for-sale securities and utilization of operating loss carryforwards during the period. The following were the significant components of the deferred tax assets and liabilities as of December 31, 2019 and 2018: 2019 2018 Deferred tax assets: Net operating losses and tax credits $ 26,108 $ 25,851 Interest on non-accrual loans 3,201 3,039 Allowance for loan losses and loan basis 24,027 15,641 Deposits 42 90 Other real estate owned 413 393 Net unrealized holding losses on securities available-for-sale — 4,622 Net unrealized holding losses on cash flow hedges 141 — Accrued expenses 3,291 3,747 Other 2,225 2,075 Total deferred tax assets 59,448 55,458 Deferred tax liabilities: Premises and equipment (1,952 ) (3,752 ) Core deposit intangibles (8,883 ) (9,306 ) Servicing assets (5,422 ) (337 ) Trust preferred securities (2,552 ) (2,710 ) Net unrealized holding gain on securities available-for-sale (804 ) — Net unrealized holding gain on cash flow hedges — (1,839 ) Other (1,520 ) (1,871 ) Total deferred tax liabilities (21,133 ) (19,815 ) Net deferred tax assets $ 38,315 $ 35,643 Note 11—Income Taxes (continued) 2019 2018 NOL carryforwards available to offset future taxable income: Federal gross NOL carryforwards - begin to expire in 2030 $ 14,357 $ 1,233 Illinois gross NLD carryforwards - begin to expire in 2022 307,705 340,999 Pursuant to Sections 382 and 383 of the Internal Revenue Code, annual use of net operating loss and credit carryforwards may be limited in the event a cumulative change in ownership of more than 50 percent occurs within a three‑year period. The Company has determined that such an ownership change occurred as of June 28, 2013 as a result of our recapitalization. This ownership change resulted in estimated limitations on the utilization of tax attributes, including net operating loss carryforwards and tax credits. Pursuant to Sections 382 and 383, a portion of the limited net operating loss carryforwards and credits become available to use each year. Approximately $756,000 of the restricted Federal net operating losses will become available each year related to Federal net operating losses generated prior to the 2013 recapitalization. In connection with the Company’s acquisition of Oak Park River Forest, the Company acquired $4.3 million of additional Federal net operating losses that are subject to an annual Section 382 limitation of approximately $781,000. These Federal net operating losses acquired in connection with the Oak Park River Forest acquisition do not expire. The Company and the Bank file consolidated income tax returns. The Company and the Bank are no longer subject to United States federal income tax examinations for years before 2016 and state income tax examinations for years before 2015. |
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 12—Federal Home Loan Bank Advances The following table summarizes the FHLB advances as of December 31, 2019 and 2018: 2019 2018 Federal Home Loan Bank advances $ 490,000 $ 425,000 Weighted average cost 1.70 % 2.56 % At December 31, 2019, fixed‑rate advances totaled $390.0 million, with interest rates ranging from 1.74% to 1.77% and maturities ranging from January 2020 to March 2020. Total variable rate advances were $100.0 million at December 31, 2019, with an interest rate of 1.47% that may reset daily, and matures in February 2020. The Company’s advances from the FHLB are collateralized by residential real estate loans, commercial real estate loans, and securities. The Company’s required investment in FHLB stock is $4.50 for every $100 in advances. Refer to Note 4—Securities for additional discussion. At December 31, 2019 and 2018, the Bank has additional borrowing capacity from the FHLB of $1.4 billion and $1.3 billion, respectively, subject to the availability of proper collateral. The Bank’s maximum borrowing capacity is limited to 35% of total assets. |
Other Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Other Borrowings | Note 13—Other Borrowings The following is a summary of the Company’s other borrowings as of December 31, 2019 and 2018: 2019 2018 Securities sold under agreements to repurchase $ 49,638 $ 34,166 Line of credit — — Total $ 49,638 $ 34,166 Securities sold under agreements to repurchase represent a demand deposit product offered to customers that sweep balances in excess of the FDIC insurance limit into overnight repurchase agreements. The Company pledges securities as collateral for the repurchase agreements. Refer to Note 4—Securities for additional discussion. Note 13—Other Borrowings (continued) On October 13, 2016, the Company entered into a $30.0 million credit agreement with a correspondent bank. In April 2017, the revolving line of credit was amended to a non-revolving line of credit as long as the outstanding balance exceeds $5.0 million. When the outstanding balance is reduced to $5.0 million, the line of credit will be converted to a revolving line of credit with credit availability up to $5.0 million until maturity. In July 2017, the Company repaid the outstanding balance, in full, under this line of credit of $16.2 million with proceeds from its initial public offering (“IPO”). Prior to its maturity on October 10, 2019, the line of credit carried an interest rate at either the London Interbank Offered Rate (“LIBOR”) for the applicable interest period plus 225 basis points or the Prime Rate minus 50 basis points, based on the Company’s election. On April 30, 2019, the Company drew on the line of credit for $5.7 million and selected the LIBOR plus 225 basis points interest rate option, which was the interest rate option at the time of the draw. The funds were utilized to repay a line of credit assumed as a result of the Oak Park River Forest acquisition. The Company repaid the $5.7 million outstanding balance of the line of credit in full on May 31, 2019. On October 10, 2019, the Company entered into a fourth amendment to the revolving credit agreement, which increased the revolving loan commitment to $15.0 million and extended the maturity of the credit facility to October 9, 2020. The amended revolving line of credit bears interest at either LIBOR plus 195 basis points or Prime Rate minus 75 basis points, based on the Company’s election, which is required to be communicated at least three business days prior to the commencement of an interest period. If the Company fails to provide timely notification, the interest rate will be Prime Rate minus 75 basis points. As of December 31, 2019 and 2018, the line of credit had no outstanding balance, therefore an interest rate option has not been selected. The following table presents short-term credit lines available for use, for which the Company did not have an outstanding balance as of December 31, 2019 and 2018: 2019 2018 Federal Reserve Bank of Chicago discount window line $ 547,798 $ 293,613 Available federal funds lines 115,000 55,000 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | Note 14—Deposits The following is a summary of the Company’s deposits as of December 31, 2019 and 2018: 2019 2018 Non-interest-bearing demand deposits $ 1,279,641 $ 1,192,873 Interest-bearing checking accounts 338,185 296,339 Money market demand accounts 881,387 640,401 Other savings 475,839 476,418 Time deposits (below $250,000) 916,723 911,603 Time deposits ($250,000 and above) 255,802 232,282 Total deposits $ 4,147,577 $ 3,749,916 Time deposits of $250,000 or more included $41.0 million and $50.0 million of brokered deposits at December 31, 2019 and 2018, respectively. At December 31, 2019, the scheduled maturities of time deposits were as follows: Scheduled Maturities 2020 $ 1,091,183 2021 60,398 2022 12,324 2023 6,661 2024 1,959 Total $ 1,172,525 |
Junior Subordinated Debentures
Junior Subordinated Debentures | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Junior Subordinated Debentures | Note 15— Junior Subordinated Debentures At December 31, 2019 and 2018, the Company’s junior subordinated debentures by issuance were as follows: Name of Trust Aggregate Principal Amount 2019 Aggregate Principal Amount 2018 Stated Maturity Contractual Rate at December 31, 2019 Interest Rate Spread Metropolitan $ 35,000 $ 35,000 March 4.69 % Three-month LIBOR + 2.79% RidgeStone Capital Trust I 1,500 1,500 June 30, 2033 6.38 % Five-year LIBOR + 3.50% First Evanston Bancorp Trust I 10,000 10,000 March 15, 2035 3.67 % Three-month LIBOR + 1.78% Total liability, at par 46,500 46,500 Discount (9,166 ) (9,732 ) Total liability, at carrying value $ 37,334 $ 36,768 In 2004, the Company’s predecessor, Metropolitan Bank Group, Inc., issued $35.0 million floating rate junior subordinated debentures to Metropolitan Statutory Trust 1, which was formed for the issuance of trust preferred securities. The debentures bear interest at three-month LIBOR plus 2.79% (4.69% and 5.58% at December 31, 2019 and 2018, respectively). Interest is payable quarterly. The Company has the right to redeem the debentures, in whole or in part, on any interest payment date on or after March 2009. Accrued interest payable was $71,000 and $84,000 as of December 31, 2019 and 2018, respectively. As part of the Ridgestone acquisition, the Company assumed the obligations to RidgeStone Capital Trust I of $1.5 million in principal amount, which was formed for the issuance of trust preferred securities. Beginning on June 30, 2008, the interest rate reset to the five-year LIBOR plus 3.50% (6.38% at December 31, 2019 and 2018), which is in effect until June 30, 2023 and updated every five years. Interest is paid on a quarterly basis. The Company has the right to redeem the debentures, in whole or in part, on any interest payment date on or after June 30, 2008. There was no accrued interest payable as of December 31, 2019 or 2018. As part of the First Evanston acquisition, the Company assumed the obligations to First Evanston Bancorp Trust I of $10.0 million in principal amount, which was formed for the issuance of trust preferred securities. Refer to Note 3—Acquisition of a Business for additional information. Beginning on March 15, 2010, the interest rate reset to the three-month LIBOR plus 1.78% (3.67% and 4.57% at December 31, 2019 and 2018, respectively), which is in effect until the debentures mature in 2035. Interest is paid on a quarterly basis. The Company has the right to redeem the debentures, in whole or in part, on any interest payment date on or after March 2010. The Company has the option to defer interest payments on the debentures from time to time for a period not to exceed five consecutive years. Accrued interest payable was $17,000 and $21,000 as of December 31, 2019 and 2018, respectively. The Trusts are not consolidated with the Company. Accordingly, the Company reports the subordinated debentures held by the Trusts as liabilities. The Company owns all of the common securities of each trust. The junior subordinated debentures qualify, and are treated as, Tier 1 regulatory capital of the Company subject to regulatory limitations. The trust preferred securities issued by each trust rank equally with the common securities in right of payment, except that if an event of default under the indenture governing the notes has occurred and is continuing, the preferred securities will rank senior to the common securities in right of payment. On February 25, 2020 the Company notified the trustee of RidgeStone Capital Trust I of its intent to redeem the debentures, in whole, at par, at the next available interest payment date, which is expected to be on June 30, 2020. The Company estimates the charge to other non-interest expense to be approximately $112,000 at the time of the redemption. The Company has received all necessary approvals for this redemption. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | |
Employee Benefit Plans | Note 16— Employee Benefit Plans The Company’s defined contribution 401(k) savings plan (the “Plan”) covers substantially all employees that have completed certain service requirements. The Board of Directors determines the amount of any discretionary profit sharing contribution made to the Plan. There were no profit sharing contributions to the Plan for the years ended December 31, 2019, 2018, and 2017. The net assets of the Plan are not included in the Consolidated Statements of Financial Condition. Note 16— Employee Benefit Plans (continued) The 401(k) employer match contribution is equal to 100% of the first 3% and 50% for the next 2% contributed to the Plan by employees. Total expense for the employer contributions made to the Plan was $2.5 million, $2.1 million, and $1.5 million during the years ended December 31, 2019, 2018, and 2017, respectively. On June 14, 2017, the Company’s Board of Directors adopted the Byline Bancorp, Inc. Employee Stock Purchase Plan (the “ESPP”) within the meaning of Section 423 of the Internal Revenue Code, as amended. The ESPP allows employees to purchase shares of the Company’s common stock at a discount to the market price of the stock through automatic payroll deductions. A total of 200,000 shares of common stock were reserved for sale under the ESPP, subject to adjustment in accordance with the terms of the ESPP. The Company has issued 35,710 shares in connection with the ESPP, leaving 164,290 available at December 31, 2019. The initial ESPP offering was in the first quarter of 2018. The Company recognized $190,000 and $66,000 of compensation expense for the years ended December 31, 2019 and 2018, and no compensation expense for the year ended December 31, 2017. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 17— Commitments and Contingent Liabilities Legal contingencies —In the ordinary course of business, the Company and Bank have various outstanding commitments and contingent liabilities that are not recognized in the accompanying consolidated financial statements. In addition, the Company may be a defendant in certain claims and legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is currently not expected to have a material adverse effect on the Company’s Consolidated Financial Statements. Operating lease commitments —The Company has entered into various operating lease agreements primarily for facilities and land on which banking facilities are located. Certain lease agreements have renewal options at the end of the original lease term and certain lease agreements have escalation clauses in the rent payments. The minimum annual rental commitments for operating leases subsequent to December 31, 2019, exclusive of taxes and other charges, are summarized as follows: Minimum Commitments 2020 $ 4,560 2021 4,106 2022 2,357 2023 1,358 2024 1,225 Thereafter 2,136 Total $ 15,742 The Company’s rental expenses for the years ended December 31, 2019, 2018, and 2017 were $5.8 million, $5.5 million, and $4.6 million, respectively. During the years ended December 31, 2019, 2018, and 2017 the Company received $752,000, $723,000, and $702,000, respectively, in sublease income which is included in the Consolidated Statements of Operations as a reduction of occupancy expense. The total amount of minimum rentals to be received in the future on these subleases is approximately $1.2 million, and the leases have contractual lives extending through 2025. In addition to the above required lease payments, the Company has contractual obligations related primarily to information technology contracts and other maintenance contracts. In June 2018, the Company accrued $8.1 million in data processing expense primarily related to contract termination with its core service provider in anticipation of a future system conversion Commitments to extend credit —The Company is party to financial instruments with off‑balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. The contractual or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. Note 17— Commitments and Contingent Liabilities (continued) The Company’s exposure to credit loss in the event of non‑performance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for funded instruments. The Company does not anticipate any material losses as a result of the commitments and letters of credit. The following table summarizes the contract or notional amount of outstanding loan and lease commitments at December 31, 2019 and 2018: 2019 2018 Fixed Rate Variable Fixed Variable Commitments to extend credit $ 55,852 $ 908,382 $ 74,099 $ 928,991 Letters of credit 724 65,514 1,982 34,071 Total $ 56,576 $ 973,896 $ 76,081 $ 963,062 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral is primarily obtained in the form of commercial and residential real estate (including income producing commercial properties). Letters of credit are conditional commitments issued by the Company to guarantee to a third-party the performance of a customer. Those guarantees are primarily issued to support public and private borrowing arrangements, bond financing and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments have interest rates ranging from 2.50% to 19.50% and maturities up to 2043. Variable rate loan commitments have interest rates ranging from 2.75% to 10.00% and maturities up to 2048. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 18— Fair Value Measurement 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. In addition, the Company has the ability to obtain fair values for markets that are not accessible. These types of inputs create the following fair value hierarchy: Level 1 —Quoted prices in active markets for identical assets or liabilities. Level 2 —Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available. The Company’s own data used to develop unobservable inputs may be adjusted for market considerations when reasonably available. The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to assets and liabilities. Note 18— Fair Value Measurement (continued) The Company used the following methods and significant assumptions to estimate fair value for certain assets measured and carried at fair value on a recurring basis: Securities available-for-sale —The Company obtains fair value measurements from an independent pricing service. Management reviews the procedures used by the third party, including significant inputs used in the fair value calculations. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. When market quotes are not readily accessible or available, alternative approaches are utilized, such as matrix or model pricing. The Company’s methodology for pricing non-rated bonds focuses on three distinct inputs: equivalent rating, yield and other pricing terms. To determine the rating for a given non-rated municipal bond, the Company references a publicly issued bond by the same issuer if available as well as other additional key metrics to support the credit worthiness. Typically, pricing for these types of bonds would require a higher yield than a similar rated bond from the same issuer. A reduction in price is applied to the rating obtained from the comparable bond, as the Company believes if liquidated, a non-rated bond would be valued less than a similar bond with a verifiable rating. The reduction applied by the Company is one notch lower (i.e. a “AA” rating for a comparable bond would be reduced to “AA-” for the Company’s valuation). In 2019 and 2018, all of the ratings derived by the Company were “BBB” or better with and without comparable bond proxies. The fair value measurement of municipal bonds is sensitive to the rating input, as a higher rating typically results in an increased valuation. The remaining pricing inputs used in the bond valuation are observable. Based on the rating determined, the Company obtains a corresponding current market yield curve available to market participants. Other terms including coupon, maturity date, redemption price, number of coupon payments per year, and accrual method are obtained from the individual bond term sheets. Equity and other securities — The Company utilizes the same fair value measurement methodology for equity and other securities as detailed in the securities available-sale portfolio above . Servicing assets —Fair value is based on a loan-by-loan basis taking into consideration the original term to maturity, the current age of the loan and the remaining term to maturity. The valuation methodology utilized for the servicing assets begins with generating estimated future cash flows for each servicing asset, based on their unique characteristics and market-based assumptions for prepayment speeds and costs to service. The present value of the future cash flows are then calculated utilizing market-based discount rate assumptions. Derivative instruments —Interest rate derivatives are valued by a third party, using models that primarily use market observable inputs, such as yield curves, and are validated by comparison with valuations provided by the respective counterparties. Derivative financial instruments are included in other assets and other liabilities in the Consolidated Statements of Financial Condition. Note 18— Fair Value Measurement (continued) The following tables summarize the Company’s financial assets and liabilities that were measured at fair value on a recurring basis at December 31, 2019 and 2018: Fair Value Measurements Using 2019 Fair Value Level 1 Level 2 Level 3 Financial assets Securities available-for-sale U.S. Treasury Notes $ 41,830 $ 41,830 $ — $ — U.S. Government agencies 164,950 — 164,950 — Obligations of states, municipalities, and political subdivisions 94,832 — 94,832 — Mortgage-backed securities; residential Agency 490,236 — 490,236 — Non-Agency 109,822 — 109,822 — Mortgage-backed securities; commercial Agency 159,701 — 159,701 — Non-Agency 31,274 — 31,274 — Corporate securities 49,330 — 49,330 — Asset-backed securities 44,317 — 44,317 — Equity and other securities, at fair value Mutual funds 2,952 2,952 — — Equity securities 5,079 — 4,379 700 Servicing assets 19,471 — — 19,471 Derivative assets 7,960 — 7,960 — Financial liabilities Derivative liabilities 8,519 — 8,519 — Fair Value Measurements Using 2018 Fair Value Level 1 Level 2 Level 3 Financial assets Securities available-for-sale U.S. Treasury Notes $ 52,667 $ 52,667 $ — $ — U.S. Government agencies 186,498 — 186,498 — Obligations of states, municipalities, and political subdivisions 60,233 — 60,233 195 Mortgage-backed securities; residential Agency 272,963 — 272,963 — Non-Agency 83,621 — 83,621 — Mortgage-backed securities; commercial Agency 90,434 — 90,434 — Non-Agency 30,458 — 30,458 — Corporate securities 34,173 — 34,173 — Other securities 6,609 2,844 3,074 691 Servicing assets 19,693 — — 19,693 Derivative assets 10,740 — 10,740 — Financial liabilities Derivative liabilities 4,243 — 4,243 — The Company has originated, and acquired through a business combination, servicing assets classified as Level 3 of the fair value hierarchy. The Company acquired single‑issuer trust preferred securities which are categorized as Level 3 of the fair value hierarchy. In 2018, these securities were included in other securities. In 2019, these securities were reclassified as equity securities consistent with recently adopted accounting guidance. Note 18— Fair Value Measurement (continued) The Company had purchased, and acquired through a business combination, privately-issued municipal securities that are categorized as Level 3. These municipal securities are bonds issued for municipal government entities located in the Chicago metropolitan area and are privately placed, non-rated bonds without Committee on Uniform Security Identification Procedures numbers. These bonds matured in 2019. The Company did not have any transfers to or from Level 1 and Level 2 of the fair value hierarchy during the years ended December 31, 2019 and 2018. The following table presents additional information about financial assets measured at fair value on recurring basis for which the Company used significant unobservable inputs (Level 3): Years Ended December 31, 2019 2018 2019 2018 Investment Securities Servicing Assets Balance, beginning of period $ 886 $ 1,052 $ 19,693 $ 21,400 Acquired assets at fair value — 314 — — Additions, net — — 6,417 7,562 Maturities (195 ) (494 ) — — Amortization — 5 — — Change in unrealized gain — 9 — — Change in fair value 9 — (6,639 ) (9,269 ) Balance, end of period $ 700 $ 886 $ 19,471 $ 19,693 The following table presents additional information about the unobservable inputs used in the fair value measurements on recurring basis that were categorized within Level 3 of the fair value hierarchy as of December 31, 2019: Financial Instruments Valuation Technique Unobservable Inputs Range of Inputs Weighted Average Input Impact to Valuation from an Increased or Higher Input Value Single issuer trust preferred Discounted cash flow Discount rate 5.1%—6.4% 5.6 % Decrease Servicing assets Discounted cash flow Prepayment speeds 2.9%—24.9% 14.7 % Decrease Discount rate 5.6%—32.1% 12.5 % Decrease Expected weighted average loan life 0.1—8.9 years 4.3 years Increase The Company used the following methods and significant assumptions to estimate fair value for certain assets measured and carried at fair value on a non-recurring basis: Impaired loans (excluding acquired impaired loans) —Impaired loans, other than those existing on the date of a business acquisition, are primarily carried at the fair value of the underlying collateral, less estimated costs to sell, if the loan is collateral dependent. Valuations of impaired loans that are collateral dependent are supported by third party appraisals in accordance with the Bank’s credit policy. Other valuation methods include analysis of discounted cash flows, which measures the present value of expected future cash flows discounted at the loan’s effective interest rate. Impaired loans that are not collateral dependent are not material. Assets held for sale —Assets held for sale consist of former branch locations and real estate previously purchased for expansion. Assets are considered held for sale when management has approved to sell the assets following a branch closure or other events. The properties are being actively marketed and transferred to assets held for sale based on the lower of carrying value or its fair value, less estimated costs to sell. Note 18— Fair Value Measurement (continued) Other real estate owned —Certain assets held within other real estate owned represent real estate or other collateral that has been adjusted to its estimated fair value, less cost to sell, as a result of transferring from the loan portfolio at the time of foreclosure or repossession and based on management’s periodic impairment evaluation. From time to time, non-recurring fair value adjustments to other real estate owned are recorded to reflect partial write-downs based on an observable market price or current appraised value of property. Adjustments to fair value based on such non-recurring transactions generally result from the application of lower-of-cost-or-market accounting or write-downs of individual assets due to impairment. The following tables summarize the Company’s assets that were measured at fair value on a non-recurring basis, excluding acquired impaired loans, as of December 31, 2019 and 2018: Fair Value Measurements Using 2019 Fair Value Level 1 Level 2 Level 3 Non-recurring Impaired loans (excluding acquired impaired loans) Commercial real estate $ 23,782 $ — $ — $ 23,782 Residential real estate 2,274 — — 2,274 Construction, land development, and other land 2,644 — — 2,644 Commercial and industrial 29,351 — — 29,351 Assets held for sale 15,362 — — 15,362 Other real estate owned 9,896 — — 9,896 Fair Value Measurements Using 2018 Fair Value Level 1 Level 2 Level 3 Non-recurring Impaired loans (excluding acquired impaired loans) Commercial real estate $ 9,792 $ — $ — $ 9,792 Residential real estate 2,076 — — 2,076 Commercial and industrial 17,397 — — 17,397 Assets held for sale 14,489 — — 14,489 Other real estate owned 5,314 — — 5,314 The following methods and assumptions were used by the Company in estimating fair values of other assets and liabilities for disclosure purposes: Cash and cash equivalents —For these short-term instruments, the carrying amount is a reasonable estimate of fair value. Securities held-to-maturity —The Company obtains fair value measurements from an independent pricing service. Management reviews the procedures used by the third party, including significant inputs used in the fair value calculations. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. When market quotes are not readily accessible or available, alternative approaches are utilized, such as matrix or model pricing. Restricted stock —The fair value has been determined to approximate cost. Loans held for sale —The fair value of loans held for sale are based on quoted market prices, where available, and determined by discounted estimated cash flows using interest rates approximating the Company’s current origination rates for similar loans adjusted to reflect the inherent credit risk. Note 18— Fair Value Measurement (continued) Loan and lease receivables, net —For certain variable rate loans that reprice frequently and with no significant changes in credit risk, fair value is estimated at carrying value. The fair value of other types of loans is estimated using an exit price notion for 2019 values. It is estimated by discounting future cash flows, using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. 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 fixed-maturity certificates of deposit is estimated by discounting future cash flows, using rates currently offered for deposits of similar remaining maturities. Federal Home Loan Bank advances —The fair value of FHLB advances is estimated by discounting the agreements based on maturities using rates currently offered for FHLB advances of similar remaining maturities adjusted for prepayment penalties that would be incurred if the borrowings were paid off on the measurement date. Securities sold under agreements to repurchase —The carrying amount approximates fair value due to maturities of less than ninety days. Junior subordinated debentures —The fair value of junior subordinated debentures, in the form of trust preferred securities, is determined using rates currently available to the Company for debt with similar terms and remaining maturities. Accrued interest receivable and payable —The carrying amount approximates fair value. Commitments to extend credit and letters of credit —The fair values of these off-balance sheet commitments to extend credit and commercial and letters of credit are not considered practicable to estimate because of the lack of quoted market prices and the inability to estimate fair value without incurring excessive costs. The estimated fair values of financial instruments not carried at fair value and levels within the fair value hierarchy are as follows: Fair Value 2019 2018 Hierarchy Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets Cash and due from banks 1 $ 48,228 $ 48,228 $ 30,190 $ 30,190 Interest bearing deposits with other banks 2 32,509 32,509 91,670 91,670 Securities held-to-maturity 2 4,412 4,498 99,266 97,739 Other restricted stock 2 22,127 22,127 19,202 19,202 Loans held for sale 3 11,732 12,935 19,827 21,654 Loans and lease receivables, net (less impaired loans at fair value) 3 3,695,674 3,661,724 3,447,160 3,407,652 Accrued interest receivable 3 13,283 13,283 10,863 10,863 Financial liabilities Non-interest-bearing deposits 2 1,279,641 1,279,641 1,192,873 1,192,873 Interest-bearing deposits 2 2,867,936 2,873,380 2,557,043 2,554,329 Accrued interest payable 2 3,677 3,677 3,484 3,484 Line of credit 2 — — — — Federal Home Loan Bank advances 2 490,000 490,000 425,000 425,000 Securities sold under repurchase agreement 2 49,638 49,638 34,166 34,166 Junior subordinated debentures 3 37,334 42,881 36,768 42,351 (1) In accordance with the prospective adoption of ASU 2016-01, the fair value of loans and lease receivables, net (less impaired loans at fair value) as of December 31, 2019 was measured using an exit price notion. The fair value as of December 31, 2018 was measured using an entry price notion. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 19— Share-Based Compensation In June 2017, the Company adopted the 2017 Omnibus Incentive Compensation Plan (the “Omnibus Plan”) in connection with our IPO. The Omnibus Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights and other equity-based, equity-related or cash-based awards. A total of 1,550,000 shares of our common stock have been reserved for issuance under the Omnibus Plan. As of December 31, 2019, there were 1,169,881 shares available for future grants under the Omnibus Plan. On July 6, 2017, in conjunction with the completion of the IPO, the Company granted 58,900 restricted shares of the Company’s common stock to certain key employees, pursuant to the Omnibus Plan. The restricted shares will cliff vest on the third anniversary of the grant date, subject to continued employment. A total of 11,898 restricted shares were also granted during the year ended December 31, 2017 in connection with the recruitment of employees. These restricted shares vest ratably over a four year period. During 2018, the Company granted 131,157 shares of restricted common stock, par value $0.01 per share. Of this total, 102,559 restricted shares will vest ratably over four years on each anniversary of the grant date, 15,165 restricted shares will vest ratably over three years on each anniversary of the grant date, and 2,268 restricted shares will vest on the first anniversary of the grant date, all subject to continued employment. In addition, 11,165 performance-based restricted shares were included in the 2018 grant. The number of shares which may be earned under the award is dependent upon the Company’s return on average assets over a three-year period ending December 31, 2020, measured in 2018 against the Company’s internal targets and for 2019 and 2020 against a peer group consisting of publicly-traded bank holding companies ranging in asset size from 50% to 200% of the Company’s total assets. Under the award, 25% of the shares will be earned at threshold performance, 100% will be earned at target and 50 th During 2019, the Company granted 189,647 shares of restricted common stock, par value $0.01 per share. Of this total, 111,823 restricted shares will vest ratably over four years on each anniversary of the grant date, 72,570 restricted shares will vest ratably over three years on each anniversary of the grant date, 683 restricted shares will vest on the first anniversary of the grant date, and 4,571 share have vested, all subject to continued employment. In addition, 20,975 performance-based restricted shares were included in the 2019 grants. The number of shares which may be earned under the award is dependent upon the Company’s return on average assets, weighted equally, over a three-year period ending December 31, 2021, measured against a peer group consisting of publicly-traded bank holding companies. Results will be measured cumulatively at the end of the three years. Any earned shares will vest on the third anniversary of the grant date. The following table discloses the changes in restricted shares for the year ended December 31, 2019: Omnibus Plan Number of Shares Weighted Average Grant Date Fair Value Beginning balance, January 1, 2019 196,480 $ 21.66 Granted 210,622 18.68 Vested (48,491 ) 21.62 Forfeited (29,958 ) 19.73 Ending balance outstanding at December 31, 2019 328,653 $ 19.94 A total of 48,491 restricted shares vested during the year ended December 31, 2019. The fair value of restricted shares that vested during the year ended December 31, 2019 was $900,000. A total of 2,975 restricted shares vested during the year ended December 31, 2018. The fair value of restricted shares that vested during the year ended December 31, 2018 was $62,000. No restricted shares vested during the year ended December 31, 2017. The Company recognizes share-based compensation based on the estimated fair value of the restricted stock at the grant date. Share-based compensation expense is included in non-interest expense in the Consolidated Statements of Operations. Note 19— Share-Based Compensation (continued) The following table summarizes restricted stock compensation expense for the years ended: Years Ended December 31, 2019 2018 2017 Total share-based compensation - restricted stock $ 1,965 $ 958 $ 203 Income tax benefit 547 267 83 Unrecognized compensation expense - restricted stock 4,616 3,167 1,227 Weighted-average amortization period remaining 2.6 years 2.9 years 2.8 years The fair value of the unvested restricted stock awards at December 31, 2019 was $6.4 million. During February 2020, the Company granted 172,660 shares of restricted common stock, par value $0.01 per share. Of this total, 101,946 restricted shares will vest ratably over four years on each anniversary of the grant date and 38,786 restricted shares will vest ratably over three years on each anniversary of the grant date, all subject to continued employment. In addition, 31,928 performance-based restricted shares were included in the February 2020 grant. The number of shares which may be earned under the award is dependent upon the Company’s return on average assets, weighted equally, over a three-year period ending December 31, 2022, measured against a peer group consisting of publicly-traded bank holding companies. Results will be measured cumulatively at the end of the three years. Any earned shares will vest on the third anniversary of the grant date. The Company maintained a nonqualified, share-based, stock option plan adopted prior to recapitalization (“MBG Plan”). There were no options granted or exercised under this plan during the year ended December 31, 2017. At the time of the Company’s reincorporation in Delaware, in June 2017, the Board of Directors cancelled the MBG Plan and all the respective outstanding options were cancelled. In October 2014, the Company adopted the Byline Bancorp, Inc. Equity Incentive Plan (“BYB Plan”). The maximum number of shares available for grants under this plan was 2,476,122 shares. During 2016 and 2015, the Company granted options to purchase 212,400 and 1,634,568 shares, respectively, under this plan. The Company did not grant any stock options during the year ended December 31, 2017. In June 2017, the Board of Directors terminated the BYB Plan and no future grants can be made under this plan. Options to purchase a total of 1,410,075 shares remain outstanding under the BYB Plan as of December 31, 2019. The types of stock options granted under the BYB Plan were Time Options and Performance Options. The exercise price of each option is equal to the fair value of the stock as of the date of grant. These option awards have vesting periods ranging from one to five years and have 10-year contractual terms. Stock volatility was computed as the average of the volatilities of peer group companies. The vesting of Time Options is conditional based on completion of service. Performance Options have conditional vesting based on either performance targets or market performance. Certain Performance Options’ performance goals will be satisfied (in whole or in part) if the Bank achieves various performance targets such as profitability, asset quality, and conditional based on market performance, as outlined in the BYB Plan. Each of the performance goals identified are measured for achievement (or failure to achieve) independent of each other. In October 2017, the Board of Directors determined that the Performance Option goals were satisfied, in whole, and these Performance Options converted to Time Options. As a result of the previous completion of service, 414,894 performance options vested on October 3, 2017. The fair values of the stock options were determined using the Black-Scholes-Merton model for Time Options and a Monte Carlo simulation model for Performance Options. Note 19— Share-Based Compensation (continued) The following table discloses the activity in shares subject to options and the weighted average exercise prices, in actual dollars, for the year ended December 31, 2019: BYB Plan Number of Shares Weighted Average Exercise Price Intrinsic Value Weighted Average Remaining Contractual Term (in Years) Beginning balance, January 1, 2019 1,598,872 $ 11.84 $ 7,713 6.6 Granted — Expired — Exercised (127,997 ) $ 14.71 $ 521 Forfeited (60,800 ) $ 16.25 Ending balance outstanding at December 31, 2019 1,410,075 $ 11.38 $ 11,542 5.4 Exercisable at December 31, 2019 1,390,075 $ 11.31 $ 11,475 5.4 Note 19— Share-Based Compensation (continued) A total of 127,997 stock options were exercised during the year ended December 31, 2019. During the year ended December 31, 2019, proceeds from the exercise of stock options were $1.9 million and related tax benefit was $145,000. A total of 148,748 stock options were exercised during the year ended December 31, 2018. During the year ended December 31, 2018, proceeds from the exercise of stock options were $1.7 million and related tax benefit was $449,000. There were no stock options exercised during the year ended December 31, 2017. A total of 17,500 stock options vested during the year ended December 31, 2019. The Company recognizes share-based compensation based on the estimated fair value of the option at the grant date. Forfeitures are estimated based upon industry standards. Share-based compensation expense is included in non-interest expense in the Consolidated Statements of Operations. The following table summarizes stock option compensation expense for the years ended December 31, 2019, 2018, and 2017: Years Ended December 31, 2019 2018 2017 Total share-based compensation (benefit) - stock options $ (106 ) $ 458 $ 1,294 Income tax benefit (expense) (29 ) 127 521 Unrecognized compensation expense - stock options 7 146 729 Weighted-average amortization period remaining 0.3 years 1.1 years 1.2 years Pursuant to the terms of the Merger Agreement, upon the Effective Time, each outstanding First Evanston Option held by a participant in the First Evanston Bancorp, Inc. Stock Incentive Plan (the “FEB Plan”) ceased to represent a right to acquire shares of First Evanston common stock and was assumed and converted automatically into a fully vested and exercisable adjusted option to purchase shares of Byline common stock (each an “Adjusted Option”). In accordance with the Merger Agreement, the number of shares of Byline common stock to which each such Adjusted Option relates is equal to the product (rounded down to the nearest whole share of Byline common stock) of: (a) the number of shares of First Evanston common stock subject to the First Evanston Option immediately prior to May 31, 2018, multiplied by (ii) 4.725. Each Adjusted Option has an exercise price per share of Byline common stock equal to the quotient (rounded up to the nearest whole cent) of (x) the per share exercise price of such First Evanston Option immediately prior to May 31, 2018, divided by (y) 4.725. The description of the conversion process is based on, and qualified by, the Merger Agreement. Note 19— Share-Based Compensation (continued) The following table discloses the activity in shares subject to options under the FEB Plan and the weighted average exercise prices, in actual dollars, for the year ended December 31, 2019: FEB Plan Number of Shares Weighted Average Exercise Price Intrinsic Value Weighted Average Remaining Contractual Term (in Years) Beginning balance, January 1, 2019 624,383 $ 11.31 $ 3,339 5.2 Granted — Expired — Exercised (113,214 ) 11.17 $ 909 Forfeited — Ending balance outstanding at December 31, 2019 511,169 $ 11.35 $ 4,204 4.4 Exercisable at December 31, 2019 511,169 $ 11.35 $ 4,204 4.4 A total of 113,214 stock options were exercised during the year ended December 31, 2019. During the year ended December 31, 2019, proceeds from the exercise of stock options were $1.3 million and related tax benefit was $253,000. A total of 56,404 stock options were exercised during the year ended December 31, 2018. During the year ended December 31, 2018, proceeds from the exercise of stock options were $601,000 and related tax benefit was $168,000. All shares of restricted performance shares of First Evanston common stock (“restricted stock”) that were previously issued under and held by Participants in the FEB Plan prior to the Merger were converted into the right to receive the per share merger consideration in connection with the Merger and pursuant to the Merger Agreement. Accordingly, no shares of First Evanston restricted stock remain outstanding under the FEB Plan. On April 30, 2019, the Company completed the acquisition of Oak Park River Forest. On May 15, 2019, the Company made a cash payment of $4.2 million for 35,870 outstanding Oak Park River Forest options to participants who elected to receive a cash payment in lieu of converting the options to the Omnibus plan. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 20— Related Party Transactions Loans to related parties —Loans that may be made to the Bank’s executive officers, as defined in 12 CFR 215 (Regulation O), directors, principal stockholders and their affiliates are on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than normal risk of collectability. As of December 31, 2019 and 2018, there were no material loans made to the related parties described above. Deposits from related parties —Deposits from related parties were not material as of December 31, 2019 and 2018. Other —As of December 31, 2019 and 2018, there were no receivables outstanding from related parties. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements | Note 21—Regulatory Capital Requirements The Company and the Bank are subject to various regulatory capital requirements administered by their respective banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off‑balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Common Equity Tier 1 capital (“CET1”), Tier 1 capital and total capital to risk‑weighted assets and of Tier 1 capital to average consolidated assets, as defined in the regulations. Note 21—Regulatory Capital Requirements (continued) As of December 31, 2019, the most recent notification from the FDIC categorized the Bank as well‑capitalized under the framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category. The required regulatory capital ratios are set forth in the following tables along with the minimum capital amounts required for the Company and the Bank and the minimum capital amount required for the Bank to be considered to be well capitalized. The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2019 and 2018 are also presented. Actual Minimum Capital Required Required to be Considered Well Capitalized 2019 Amount Ratio Amount Ratio Amount Ratio Total capital to risk weighted assets: Company $ 627,573 14.43 % $ 347,835 8.00 % N/A N/A Bank 602,684 13.87 % 347,564 8.00 % 434,454 10.00 % Tier 1 capital to risk weighted assets: Company $ 594,477 13.67 % $ 260,876 6.00 % N/A N/A Bank 569,588 13.11 % 260,673 6.00 % 347,564 8.00 % Common Equity Tier 1 (CET1) to risk weighted assets: Company $ 537,539 12.36 % $ 195,657 4.50 % N/A N/A Bank 569,588 13.11 % 195,504 4.50 % 282,395 6.50 % Tier 1 capital to average assets: Company $ 594,477 11.39 % $ 208,771 4.00 % N/A N/A Bank 569,588 10.92 % 208,647 4.00 % 260,809 5.00 % Actual Minimum Capital Required Required to be Considered Well Capitalized 2018 Amount Ratio Amount Ratio Amount Ratio Total capital to risk weighted assets: Company $ 551,079 13.99 % $ 315,093 8.00 % N/A N/A Bank 528,329 13.40 % 315,455 8.00 % 394,318 10.00 % Tier 1 capital to risk weighted assets: Company $ 523,808 13.30 % $ 236,320 6.00 % N/A N/A Bank 501,058 12.71 % 236,591 6.00 % 315,455 8.00 % Common Equity Tier 1 (CET1) to risk weighted assets: Company $ 466,870 11.85 % $ 177,240 4.50 % N/A N/A Bank 501,058 12.71 % 177,443 4.50 % 256,307 6.50 % Tier 1 capital to average assets: Company $ 523,808 11.05 % $ 189,587 4.00 % N/A N/A Bank 501,058 10.56 % 189,797 4.00 % 237,246 5.00 % The Company and Byline Bank must maintain a capital conservation buffer consisting of CET1 capital greater than 2.5% of risk-weighted assets above the required minimum risk-based capital levels in order to avoid limitations on paying dividends, repurchasing shares, and paying discretionary bonuses. The conservation buffers for the Company and Byline Bank exceed the minimum capital requirement at 6.43% and 5.87%, respectively, as of December 31, 2019. Provisions of state and federal banking regulations may limit, by statute, the amount of dividends that may be paid to the Company by Byline Bank without prior approval of Byline Bank’s regulatory agencies. The Company is economically dependent on the cash dividends received from Byline Bank. These dividends represent the Company’s primary cash flow from operating activities used to service its obligations. For the years ended December 31, 2019 and 2018, the Company received $13.5 million and $2.9 million, respectively, in cash dividends from Byline Bank, primarily used to pay interest on the subordinated debentures issued in connection with trust preferred securities, dividends on the Company’s preferred stock, and other corporate expenses. |
Derivative Instruments and Hedg
Derivative Instruments and Hedge Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedge Activities | Note 22—Derivative Instruments and Hedge Activities As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. The Company records derivative assets and derivative liabilities on the Consolidated Statements of Financial Condition within accrued interest receivable and other assets and accrued interest payable and other liabilities, respectively. The following tables present the fair value of the Company’s derivative financial instruments and classification on the Consolidated Statements of Financial Condition as of December 31, 2019 and 2018: 2019 2018 Fair Value Fair Value Notional Amount Other Assets Other Liabilities Notional Amount Other Assets Other Liabilities Derivatives designated as hedging instruments Interest rate swaps designated as cash flow hedges $ — $ — $ — $ 250,000 $ 6,699 $ — Derivatives not designated as hedging instruments Other interest rate derivatives 332,056 7,960 8,507 294,545 4,041 4,237 Other credit derivatives 9,302 — 12 4,424 — 6 Total derivatives $ 341,358 $ 7,960 $ 8,519 $ 548,969 $ 10,740 $ 4,243 Interest rate swaps designated as cash flow hedges —Cash flow hedges of interest payments associated with certain FHLB advances had notional amounts totaling $250.0 million as of December 31, 2018. There were no cash flow hedges outstanding at December 31, 2019. The Company assessed the effectiveness of each hedging relationship by comparing the changes in fair value of the derivative hedging instrument with the changes in fair value of the designated hedged transactions. In September 2019, the Company terminated $250.0 million interest rate swaps designated as cash flow hedges, which were executed to reduce interest rate risk in a declining rate environment. The transaction resulted in a net loss of $383,000, net of tax, which was the clean value at the termination date. As of December 31, 2019 , the remaining balance in accumulated other comprehensive income was $366,000, which will be amortized over the original life of the cash flow hedge. Interest recorded on these swap transactions reduced FHLB interest expense by $1.6 million and $1.3 million during the years ended December 31, 2019 and 2018 The following table reflects the net gains (losses) recorded in accumulated other comprehensive income (loss) and the Consolidated Statements of Operations relating to the cash flow derivative instruments for the years ended December 31, 2019 and 2018 2019 2018 Amount of Loss Recognized in OCI Amount of Gain Reclassified from OCI to Income as a Decrease to Interest Expense Amount of Gain (Loss) Recognized in Other Non-Interest Income Amount of Gain Recognized in OCI Amount of Gain Reclassified from OCI to Income as a Decrease to Interest Expense Amount of Gain (Loss) Recognized in Other Non-Interest Income Interest rate swaps $ (5,483 ) $ 1,626 $ — $ 2,960 $ 1,348 $ — Note 22—Derivative Instruments and Hedge Activities (continued) Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements and/or the Company has not elected to apply hedge accounting. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. Other interest rate derivatives —The total combined notional amount was $332.1 million as of December 31, 2019, with maturities ranging from April 2020 to January 2030. The fair values of the interest rate derivative agreements are reflected in other assets and other liabilities with corresponding gains or losses reflected in non-interest income. During the years ended December 31, 2019, 2018, and 2017, there were $1.2 million, $1.7 million, and $393,000 of transaction fees, respectively, included in other non-interest income, related to these derivative instruments. These instruments are inherently subject to market risk and credit risk. Market risk is associated with changes in interest rates and credit risk relates to the Company’s risk of loss when the counterparty to a derivative contract fails to perform according to the terms of the agreement. Market and credit risks are managed and monitored as part of the Company’s overall asset-liability management process. The credit risk related to derivatives entered into with certain qualified borrowers is managed through the Company’s loan underwriting process. The Company’s loan underwriting process also approves the Bank’s swap counterparty used to mirror the borrowers’ swap. The Company has a bilateral agreement with each swap counterparty that provides that fluctuations in derivative values are to be fully collateralized with either cash or securities. The following table reflects other interest rate derivatives as of December 31, 2019: Notional amounts $ 332,056 Derivative assets fair value 7,960 Derivative liabilities fair value 8,507 Weighted average pay rates 4.63 % Weighted average receive rates 3.94 % Weighted average maturity 6.5 years Other credit derivatives —The Company has entered into risk participation agreements with counterparty banks to assume a portion of the credit risk related to borrower transactions. The credit risk related to these other credit derivatives is managed through the Company’s loan underwriting process. The total notional amount was $9.3 million and $4.4 million as of December 31, 2019 and 2018, respectively. The fair value of the other credit derivatives are reflected in other liabilities with corresponding gains or losses reflected in non-interest income. The Company has agreements with its derivative counterparties that contain a cross-default provision under which if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain derivative counterparties that contain a provision where if the Company fails to maintain its status as a well or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations resulted in a net asset position. The following table reflects amounts included in non-interest income in the Consolidated Statements of Operations relating to derivative instruments that are not designated in a hedging relationship for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Other interest rate derivatives $ (351 ) $ (192 ) $ (44 ) Other credit derivatives 67 54 — Total $ (284 ) $ (138 ) $ (44 ) Note 22—Derivative Instruments and Hedge Activities (continued) The Company records interest rate derivatives subject to master netting agreements at their gross value and does not offset derivative asset and liabilities on the Consolidated Statements of Financial Condition. The table below summarizes the Company’s interest rate derivatives and offsetting positions as of December 31, 2019 and 2018 2019 2018 Derivative Assets Fair Value Derivative Liabilities Fair Value Derivative Assets Fair Value Derivative Liabilities Fair Value Gross amounts recognized $ 7,960 $ 8,519 $ 10,740 $ 4,243 Less: Amounts offset in the Consolidated Statements of Financial Condition — — — — Net amount presented in the Consolidated Statements of Financial Condition $ 7,960 $ 8,519 $ 10,740 $ 4,243 Gross amounts not offset in the Consolidated Statements of Financial Condition Offsetting derivative positions (1 ) (1 ) (2,823 ) (2,823 ) Collateral posted (7,959 ) (8,518 ) (7,917 ) (1,317 ) Net credit exposure $ — $ — $ — $ 103 As of December 31, 2019, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $8.5 million. The Company has posted $8.5 collateral related to these agreements as of December 31, 2019. If the Company had breached any of these provisions at December 31, 2019, it could have been required to settle its obligations under the agreements at their termination value of $8.5 million. For purposes of this disclosure, the amount of posted collateral by the counterparties is limited to the amount offsetting the derivative asset and derivative liability. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Condensed Financial Statements | Note 23—Parent Company Only Condensed Financial Statements The following represents the condensed financial statements of Byline Bancorp, Inc., the Parent Company: Statements of Financial Condition Parent Company Only As of December 31, 2019 2018 ASSETS Cash $ 13,370 $ 18,242 Investment in banking subsidiary 769,797 667,236 Other assets 5,824 3,067 Total assets $ 788,991 $ 688,545 LIABILITIES AND STOCKHOLDERS’ EQUITY Line of credit $ — $ — Junior subordinated debentures issued to capital trusts, net 37,334 36,768 Accrued expenses and other liabilities 1,542 1,105 Stockholders' equity 750,115 650,672 Total liabilities and stockholders' equity $ 788,991 $ 688,545 Note 23—Parent Company Only Condensed Financial Statements (continued) Statements of Operations Parent Company Only Years ended December 31, 2019 2018 2017 INCOME Dividends from subsidiary $ 13,500 $ 2,900 $ 2,800 Other noninterest income — — 9 Total income 13,500 2,900 2,809 EXPENSES Interest expense 2,984 2,716 2,782 Other noninterest expense 1,768 3,214 1,804 Total expenses 4,752 5,930 4,586 Income (loss) before provision for income taxes and equity in undistributed income of subsidiary 8,748 (3,030 ) (1,777 ) Benefit for income taxes (1,323 ) (1,549 ) (1,166 ) Income (loss) before equity in undistributed income of subsidiary 10,071 (1,481 ) (611 ) Equity in undistributed income of subsidiary 46,931 42,674 22,306 Net income $ 57,002 $ 41,193 $ 21,695 Statements of Cash Flows Parent Company Only Years ended December 31, 2019 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 57,002 $ 41,193 $ 21,695 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed income of subsidiary (46,931 ) (42,674 ) (22,306 ) Stock-based compensation expense 1,673 1,514 1,497 Accretion of junior subordinated debentures discount 566 624 721 Changes in other assets and other liabilities (7,916 ) (3,291 ) (2,893 ) Net cash provided by (used in) operating activities 4,394 (2,634 ) (1,286 ) CASH FLOWS FROM INVESTING ACTIVITIES Net cash paid in acquisition of business (6,554 ) (20,510 ) — Net cash used in investing activities (6,554 ) (20,510 ) — CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from revolving line of credit 5,680 — — Repayments of revolving line of credit (11,335 ) — (20,650 ) Dividends paid on preferred stock (783 ) (783 ) (11,277 ) Cash paid in lieu of fractional shares — — (2 ) Proceeds from issuance of common stock, net 3,726 2,543 76,829 Proceeds from issuance of preferred stock — — 1,050 Repurchase of preferred stock — — (15,003 ) Net cash (used in) provided by financing activities (2,712 ) 1,760 30,947 NET CHANGE IN CASH AND CASH EQUIVALENTS (4,872 ) (21,384 ) 29,661 CASH AND CASH EQUIVALENTS, beginning of period 18,242 39,626 9,965 CASH AND CASH EQUIVALENTS, end of period $ 13,370 $ 18,242 $ 39,626 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 24—Earnings per Share A reconciliation of the numerators and denominators for earnings per common share computations is presented below. Incremental shares represent outstanding stock options for which the exercise price is less than the average market price of the Company’s common stock during the periods presented. Options to purchase 1,921,244, 2,223,255, and 1,783,020 shares of common stock were outstanding as of December 31, 2019, 2018, and 2017, respectively. There were 328,653, 196,480, and 70,798 restricted stock awards outstanding at December 31, 2019, 2018, and 2017, respectively. Note 24—Earnings per Share (continued) Years ended December 31, 2019 2018 2017 Net income $ 57,002 $ 41,193 $ 21,695 Less: Dividends on preferred shares 783 783 11,277 Net income available to common stockholders $ 56,219 $ 40,410 $ 10,418 Weighted-average common stock outstanding: Weighted-average common stock outstanding (basic) 37,290,486 33,292,619 26,963,517 Incremental shares 695,977 887,135 583,797 Weighted-average common stock outstanding (dilutive) 37,986,463 34,179,754 27,547,314 Basic earnings per common share $ 1.51 $ 1.21 $ 0.39 Diluted earnings per common share $ 1.48 $ 1.18 $ 0.38 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Note 25—Stockholders’ Equity A summary of the Company’s preferred and common stock at December 31, 2019 and 2018 is as follows: 2019 2018 Series B 7.5% fixed to floating non-cumulative perpetual preferred stock Par value $ 0.01 $ 0.01 Shares authorized 50,000 50,000 Shares issued 10,438 10,438 Shares outstanding 10,438 10,438 Common stock, voting Par value $ 0.01 $ 0.01 Shares authorized 150,000,000 150,000,000 Shares issued 38,256,500 36,343,239 Shares outstanding 38,256,500 36,343,239 During 2016, the Company authorized and issued Series B 7.50% fixed-to-floating non-voting, noncumulative perpetual preferred stock with a liquidation preference of $1,000 per share, plus the amount of unpaid dividends, if any, which is redeemable at the Company’s option on or after March 31, 2022. Holders of Series B Preferred Stock do not have any rights to convert such stock into shares of any other class of capital stock of the Company. Holders of Series B Preferred Stock are entitled to receive a fixed dividend of 7.50% per annum from the original issue date through December 30, 2021, after which the dividend is paid at a floating rate of three-month LIBOR plus 5.41% per annum. The Company Series B Preferred Stock is included in Tier 1 capital for regulatory capital purposes and is redeemable at the option of the Company at a redemption price of $1,000 per share, plus any declared and unpaid dividends (i) in whole or part on any dividend payment date on or after March 31, 2022, and (ii) in whole but not in part prior to March 31, 2022, within 90 days following a regulatory event, as defined in the Certificate of Designations of the Company Series B Preferred Stock. The Company must receive approval of the Federal Reserve Board prior to any redemption of the Company Series B Preferred Stock. For the years ended December 31, 2019 and 2018, the Company declared and paid dividends on the Series B Preferred Stock of $783,000. Note 25—Stockholders’ Equity (continued) On November 1, 2019, the Company announced that its Board of Directors approved a stock repurchase program authorizing the purchase of up to an aggregate of 1,250,000 shares of the Company’s outstanding common stock. The shares may, at the discretion of management, be repurchased from time to time in open market purchases as market conditions warrant or in privately negotiated transactions. The Company is not obligated to purchase any shares under the program, and the program may be discontinued at any time. The actual timing, number and share price of shares purchased under the repurchase program will be determined by the Company at its discretion and will depend on a number of factors, including the market price of the Company’s stock, general market and economic conditions and applicable legal requirements. The shares authorized to be repurchased represent approximately 3.3% of the Company’s outstanding common stock at December 31, 2019. The program will be in effect until December 31, 2020 unless terminated earlier. On December 12, 2019, the Company’s Board of Directors declared a cash dividend of $0.03 per share payable on January 7, 2020 to stockholders of record of the Company’s common stock as of December 24, 2019. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (unaudited) | Note 26—Selected Quarterly Financial Data (unaudited) For the year ended December 31, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $ 61,110 $ 66,760 $ 71,029 $ 65,915 Interest expense 11,025 12,312 13,191 12,001 Net interest income 50,085 54,448 57,838 53,914 Provision for loan and lease losses 3,999 6,391 5,931 4,387 Net interest income after provision for loan and lease losses 46,086 48,057 51,907 49,527 Non-interest income 11,988 14,183 14,806 14,516 Non-interest expense 40,679 43,954 45,448 43,694 Income before provision for income taxes 17,395 18,286 21,265 20,349 Provision for income taxes 4,798 5,075 5,923 4,497 Net income 12,597 13,211 15,342 15,852 Dividends on preferred shares 196 195 196 196 Income available to common stockholders $ 12,401 $ 13,016 $ 15,146 $ 15,656 Basic earnings per common share $ 0.34 $ 0.35 $ 0.40 $ 0.41 Diluted earnings per common share $ 0.34 $ 0.34 $ 0.39 $ 0.41 The Company recorded net income of $13.2 million, or $0.35 per common share, for the second quarter of 2019. The Company’s net interest income before provision for loan and lease losses was $54.4 million. On April 30, 2019, the Company acquired the assets and assumed the liabilities of Oak Park River Forest. Revenue and expenses of the acquired company since the acquisition were included in the Company’s operating results. Note 26—Selected Quarterly Financial Data (unaudited)(continued) For the year ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $ 38,142 $ 44,841 $ 61,073 $ 62,895 Interest expense 4,447 5,785 8,480 9,634 Net interest income 33,695 39,056 52,593 53,261 Provision for loan and lease losses 5,115 3,956 5,842 3,882 Net interest income after provision for loan and lease losses 28,580 35,100 46,751 49,379 Non-interest income 11,123 14,211 10,902 14,290 Non-interest expense 31,614 45,479 37,715 40,088 Income before provision for income taxes 8,089 3,832 19,938 23,581 Provision for income taxes 1,321 1,064 5,402 6,460 Net income 6,768 2,768 14,536 17,121 Dividends on preferred shares 193 198 196 196 Income available to common stockholders $ 6,575 $ 2,570 $ 14,340 $ 16,925 Basic earnings per common share $ 0.22 $ 0.08 $ 0.40 $ 0.47 Diluted earnings per common share $ 0.22 $ 0.08 $ 0.39 $ 0.46 The Company recorded net income of $2.8 million, or $0.08 per common share, for the second quarter of 2018. The Company’s net interest income before provision for loan losses was $39.1 million. On May 31, 2018, the Company acquired the assets and assumed the liabilities of First Evanston. Revenue and expenses of the acquired company since the acquisition were included in the Company’s operating results. Additionally, during the second quarter, the Company incurred $8.1 million in data processing costs related to a termination fee for our core system conversion. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss) | Note 27—Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss) The following table summarized the change in accumulated other comprehensive income (loss) for the years ended December 31, 2019, 2018, and 2017: (dollars in thousands) Unrealized Gains (Losses) on Cash Flow Hedges Unrealized (Losses) on Available-for -Sale Securities Total Accumulated Other Comprehensive Income (Loss) Balance, January 1, 2017 $ 2,233 $ (9,501 ) $ (7,268 ) Other comprehensive income, net of tax 680 1,501 2,181 Balance, December 31, 2017 2,913 (8,000 ) (5,087 ) Reclassification of certain income tax effects from accumulated other comprehensive income 687 (1,450 ) (763 ) Other comprehensive income (loss), net of tax 1,163 (4,811 ) (3,648 ) Balance, December 31, 2018 4,763 (14,261 ) (9,498 ) Cumulative-effect adjustment (ASU 2016-01) — (1,440 ) (1,440 ) Other comprehensive income (loss), net of tax (5,129 ) 15,367 10,238 Balance, December 31, 2019 $ (366 ) $ (334 ) $ (700 ) |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Business Description And Accounting Policies [Abstract] | |
Nature of business | Nature of business —Byline Bancorp, Inc. (the “Company,” “we,” “us,” “our”) is a bank holding company whose principal activity is the ownership and management of its subsidiary bank, Byline Bank (the “Bank”). The Bank originates commercial, mortgage and consumer loans and leases, U.S. government guaranteed loans, and receives deposits from customers located primarily in the Chicago, Illinois metropolitan area. The Bank operates 56 Chicago metropolitan area and one Brookfield, Wisconsin, banking offices. The Bank operates under an Illinois state bank charter, provides a full range of banking services, and has full trust powers. As an Illinois state‑chartered financial institution that is not a member of the Federal Reserve System, the Bank is subject to regulation by the Illinois Department of Financial and Professional Regulation and the Federal Deposit Insurance Corporation. The Company is regulated by the Board of Governors of the Federal Reserve System. The Bank is a participant in the Small Business Administration (“SBA”) and the United States Department of Agriculture (“USDA”) (collectively referred to as “U.S. government guaranteed loans”) lending programs and originates U.S. government guaranteed loans. As a result of its acquisition of First Evanston Bancorp, Inc. (“First Evanston”) on May 31, 2018, the Bank also provides wealth management services to our customers. See Note 3—Acquisition of a Business for additional information regarding the transaction. The Bank engages in short‑term direct financing lease contracts through BFG Corporation, doing business as Byline Financial Group (“BFG”), a wholly‑owned subsidiary of the Bank. BFG is located in Bannockburn, Illinois with sales offices in Illinois and New York, and sales representatives in Illinois, Michigan, New Jersey and New York. On June 14, 2017, stockholders of record as of May 22, 2017 voted to approve an Agreement and Plan of Merger between Byline Bancorp, Inc., an Illinois corporation (“Byline Illinois”), and Byline Bancorp, Inc., a wholly owned Delaware subsidiary of the Company, including the amended and restated certificate of incorporation and by‑laws of the Company. Each share of Byline Illinois common stock issued and outstanding immediately prior to the effective time of the Merger was converted automatically into the right to receive one fifth (0.20) of a share of common stock of the Company. Stockholders were paid a total of $2,000 in cash for remaining fractional shares based on the offering price of $19.00 per share. No subsequent events were identified that would have required a change to the consolidated financial statements or disclosure in the notes to the consolidated financial statements. |
Basis of financial statement presentation and consolidation | Basis of financial statement presentation and consolidation —The consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany items and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) as contained within the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and rules and regulations of the Securities and Exchange Commission (“SEC”), including the instructions to Regulation S‑X. In accordance with applicable accounting standards, the Company does not consolidate statutory trusts established for the sole purposes of issuing trust preferred securities and related trust common securities. See Note 15, Junior Subordinated Debentures, for additional discussion. Dollars within footnote tables disclosed within the consolidated financial statements are presented in thousands, except share and per share data. Operating results include the years ended December 31, 2019, 2018 and 2017. |
Use of estimates | Use of estimates —In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the Consolidated Statements of Financial Condition and certain revenues and expenses for the periods included in the Consolidated Statements of Operations and the accompanying notes. Actual results could differ from those estimates. Estimates that are particularly susceptible to significant changes in the near term relate to the determination of expected cash flows of acquired impaired loans, the allowance for loan and lease losses, valuation of servicing assets, fair value measurements for assets and liabilities, goodwill, other intangible assets, the valuation or recognition of deferred tax assets and liabilities, and the valuation of assets and liabilities acquired in business combinations. |
Business combinations | Business combinations —The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations (“ASC 805”). The Company recognizes the fair value of the assets acquired and liabilities assumed as of the date of acquisition, with any excess of the fair value of consideration provided over the fair value of the identifiable net tangible and intangible assets acquired recorded as goodwill. Transaction costs are immediately expensed as applicable. The results of operations of the acquired business are included in the Consolidated Statements of Operations from the effective date of the acquisition, which is the date control is obtained. In accordance with ASC 805, the acquiring company retains the right to make appropriate adjustments to the assets and liabilities of the acquired entity for information obtained during the measurement period about facts and circumstances that existed as of the acquisition date. The measurement period ends as of the earlier of (a) one year from the acquisition date or (b) the date when the acquirer receives the information necessary to complete the business combination accounting. |
Cash and cash equivalents | Cash and cash equivalents —Cash and cash equivalents have original maturities of three months or less. The Company holds cash and cash equivalents on deposit with other banks and financial institutions in amounts that periodically exceed the federal deposit insurance limit. The Company evaluates the credit quality of these banks and financial institutions to mitigate its credit risk and has not experienced any losses in such accounts. Cash on hand or on deposit with the Federal Reserve Bank of Chicago was required to meet regulatory reserve and clearing requirements. The reserve requirement was $51.8 million and $44.8 million as of December 31, 2019 and 2018, respectively, and the Bank met the requirement at each balance sheet date. |
Equity and other securities | Equity and other securities —Equity and other securities have no stated maturities and may be sold in response to the same environmental factors as securities available for sale. Equity and other securities are recorded at fair value with changes in fair value included in earnings. |
Securities | Securities —Securities that are held principally for resale in the near term are classified as trading and recorded at fair value with changes in fair value included in earnings. The Company did not invest in securities classified as trading during 2019, 2018 and 2017. Securities are classified as available‑for‑sale if the instrument may be sold in response to such factors including changes in market interest rates and related changes in prepayment risk, needs for liquidity, changes in the availability of and the yield on alternative instruments, and changes in funding sources and terms. Gains or losses on the sales of available‑for‑sale securities are recorded on the trade date and determined using the specific‑identification method. Unrealized holding gains or losses, net of tax, on available‑for‑sale securities are carried as accumulated other comprehensive income (loss) within stockholders’ equity until realized. Securities are classified as held‑to‑maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Fair values of securities are generally based on quoted market prices for the same or similar instruments. See Note 18—Fair Value Measurement for additional discussion on the determination of fair values. Interest income includes the amortization of purchase premiums and discounts, which are recognized using the effective interest method over the terms of the securities. Management evaluates securities for other‑than‑temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. The evaluation is based upon factors such as the creditworthiness of the issuers or guarantors, the underlying collateral, if applicable, and the continuing performance of the securities. Management also evaluates other facts and circumstances that may be indicative of an OTTI condition. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost, and near‑term prospects of the issuer. The Company’s assessment of OTTI considers whether it intends to sell a security or if it is more likely than not that it would be required to sell the security before recovery of the amortized cost basis of the investment, which may be at maturity. For debt securities, if the Company intends to sell the security or it is more likely than not that it will be required to sell the security before recovering its cost basis, the entire impairment loss is recognized in earnings as an OTTI. If the Company does not intend to sell the security and it is more likely than not that it will not be required to sell the security, and the Company does not expect to recover the entire amortized cost basis of the security, only the portion of the impairment loss representing credit losses would be recognized in earnings. The credit loss on a security is measured as the difference between the amortized cost basis and the present value of the cash flows expected to be collected. Projected cash flows are discounted by the original or current effective interest rate depending on the nature of the security being measured for potential OTTI. The remaining impairment related to all other factors, the difference between the present value of the cash flows expected to be collected and fair value, is recognized as a charge to other comprehensive income (loss). |
Restricted stock | Note 1—Business and Summary of Significant Accounting Policies (continued) Restricted stock —The Company owns stock of the Federal Home Loan Bank of Chicago (“FHLB”). No ready market exists for this stock, and it has no quoted market value. As a member of the FHLB system, the Bank is required to maintain an investment in FHLB stock. The stock is redeemable at par by the FHLB and is, therefore, carried at cost. In addition, the Company owns stock of Bankers Bank, which is redeemable at par and carried at cost. Restricted stock is generally viewed as a long‑term investment. Accordingly, when evaluating for impairment, its value is determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company did not recognize impairment of its restricted stock as a result of its impairment analyses for the years ended December 31, 2019, 2018, and 2017. |
Loans held for sale | Loans held for sale —Loans that management has the intent and ability to sell are designated as held for sale. U.S. government guaranteed loans and mortgage loans originated are carried at either amortized cost or estimated fair value. The Company determines whether to account for loans at fair value or amortized cost at origination. The loans accounted for at fair value remain at fair value after the determination. The loans accounted for at amortized cost are carried at the lower of cost or fair value, valued on a loan by loan basis. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Gains or losses on sales of U.S. government guaranteed loans are recognized based on the difference between the net sales proceeds and the carrying value of the sold portion of the loan, less the fair value of the servicing asset recognized, and are reflected as operating activities in the Consolidated Statements of Cash Flows. The difference between the initial carrying balance of the retained portion of the loan and the relative fair value of the sold portion is recorded as a discount to the retained portion of the loan, establishing a new carrying balance. The recorded discount is accreted to earnings on a level yield basis. U.S. government guaranteed loans are generally sold with servicing retained. Loans sold that have not yet settled as of year-end are classified as due-from counterparty on the Consolidated Statements of Financial Condition. |
Originated loans | Originated loans —Originated loans are stated at the amount of unpaid principal outstanding, net of purchase premiums and discounts, and any deferred fees or costs. Net deferred fees, costs, discounts and premiums are recognized as yield adjustments over the contractual life of the loan. Interest on loans is calculated daily based on the principal amount outstanding. Additionally, once an acquired non-impaired loan reaches its contractual maturity date, it is re-underwritten, and if renewed, it is classified as an originated loan. Originated loans are classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due, in accordance with the terms of the original loan agreement. The carrying value of impaired loans is based on the present value of expected future cash flows (discounted at each loan’s effective interest rate) or, for collateral dependent loans, at the fair value of the collateral less estimated selling costs. If the measurement of each impaired loan’s value is less than the recorded investment in the loan, impairment is recognized and the carrying value of the loan is adjusted in the allowance for loan and lease losses as a specific component provided or through a charge‑off of the impaired portion of the loan. Accrual of interest on impaired loans is discontinued when the loan is 90 days past due or when, in management’s opinion, the borrower may be unable to make payments as they become due. When the accrual of interest is discontinued, all unpaid accrued interest is reversed through interest income. Payments received during the time a loan is on non‑accrual status are applied to principal. Interest income is not recognized until the loan is returned to accrual status or after the principal balance is paid in full. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured as evidenced by agreed upon performance for a period of not less than six months. |
Troubled debt restructuring | Troubled debt restructuring —A troubled debt restructuring (“TDR”) is a formal restructuring of a loan in which the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower. The concessions may be granted in various forms, including providing a below‑market interest rate, reduction in the loan balance or accrued interest, extension of the maturity date, or a combination of these. Troubled debt restructurings are considered to be impaired loans and are subject to the Company’s impaired loan accounting policy. Acquired impaired loans are not subject to TDR accounting. The Company does not accrue interest on a TDR unless it believes collection of all principal and interest under the modified terms is reasonably assured. For a TDR to begin accruing interest, the borrower must demonstrate some level of past performance and the future capacity to perform under the modified terms. Generally, six months of consecutive payment performance under the restructured terms is required before a TDR is returned to accrual status. |
Direct finance leases | Direct finance leases —The Company engages in leasing for small‑ticket equipment, software, machinery and ancillary supplies and services to customers under leases that qualify as direct financing leases for financial reporting. Certain leases qualify as operating leases for income tax purposes. Under the direct financing method of accounting, the minimum lease payments to be received under the lease contract, together with the estimated unguaranteed residual values of the related equipment, are recorded as lease receivables when the lease is signed and funded and the lease property is delivered to the customer. The excess of the minimum lease payments and residual values over the amount financed is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease based on the effective yield interest method. Residual value is the estimated fair market value of the equipment on lease at lease termination. In estimating the equipment’s fair value at lease termination, the Company relies on historical experience by equipment type and manufacturer and, where available, valuations by independent appraisers, adjusted for known trends. The Company’s residual values are estimates for reasonableness; however, the amounts the Company will ultimately realize could differ from the estimated amounts. If the review of the residual value results in other‑than‑temporary impairment, the impairment is recognized in current period earnings. An upward adjustment of the estimated residual value is not recorded. The policies for delinquency and non‑accrual for direct finance leases are materially consistent with those described for all classes of loan receivables. The Company defers and amortizes certain initial direct costs over the contractual term of the lease as an adjustment to the yield. The unamortized direct costs are recorded as a reduction of unearned lease income. |
Acquired impaired loans | Acquired impaired loans —Loans initially acquired with evidence of credit quality deterioration are accounted for under ASC Topic 310‑30, Accounting for Purchased Loans with Deteriorated Credit Quality (“ASC 310‑30”). These loans are recorded either on a pool or a loan‑by‑loan basis at their estimated fair value where applicable. The Company may aggregate loans into pools based on similar credit risks and predominant risk characteristics such as delinquency status and loan type. Management estimated the fair values of acquired impaired loans at the acquisition date based on estimated future cash flows. The excess of cash flows expected to be collected over a loan’s carrying value is considered to be the accretable yield and is recognized as interest income over the estimated life of the loan or pool using the effective yield method. The acquisition date estimates of accretable yield may subsequently change due to changes in management’s estimates of timing and amounts of expected cash flows. The excess of the contractual amounts due over the cash flows expected to be collected is considered to be the non‑accretable difference. The non‑accretable difference represents the Company’s estimate of the credit losses expected to occur and is considered in determining the fair value of the loans. Reclassifications between accretable yield and non‑accretable difference represent changes in expected cash flows over the remaining estimated life of the loan or pool. Subsequent increases in expected cash flows over those expected at inception are adjusted through an increase to the accretable yield on a prospective basis. Any subsequent decreases in expected cash flows attributable to credit deterioration are recognized by recording an additional provision for loan losses. Once a pool of loans is assembled, the integrity of the pool is maintained. A loan can only be removed from a pool if either of the following conditions is met: (1) the Company sells, forecloses, or otherwise receives assets in satisfaction of the loan, or (2) the loan is written off. A refinancing or restructuring of a loan does not result in a removal of a loan from a pool. Loan sales are accounted for under ASC Topic 860, Transfers and Servicing (“ASC 860”), when control over the assets have been relinquished. See transfers of financial assets accounting policy. |
Acquired non-impaired loans and leases | Acquired non‑impaired loans and leases —Acquired non‑impaired loans and leases are accounted for under ASC Subtopic 310‑20, Receivables Nonrefundable Fees and Other Costs (“ASC 310‑20”). These loans and leases were individually recorded at fair value at the time of acquisition. Any previously recognized allowance for loan and lease losses and unearned fees or discounts are not carried over and recognized at the date of acquisition. The component of fair value representing an adjustment to an asset’s outstanding principal balance is accreted or amortized over the life of the related asset as a yield adjustment. The balance of the asset is then evaluated periodically pursuant to the Company’s allowance for loan and lease loss accounting policy and any adjustment required for credit risk is recorded within the allowance for loan and lease losses. Upon reaching the maturity date, all acquired non-impaired loan premium or discount is fully amortized or accreted. If the loan is re-underwritten and renewed, it is internally reclassified as an originated loan. The loan is then evaluated periodically pursuant to the Company’s allowance for loan and lease loss accounting without any consideration of the acquisition premium or discount. |
Allowance for loan and lease losses and reserve for unfunded commitments | Allowance for loan and lease losses —The allowance for loan and lease losses is maintained at a level management believes is appropriate to provide for probable loan and lease losses as of the dates of the Consolidated Statements of Financial Condition. The allowance for loan and lease losses is increased by a provision for loans and lease losses and decreased by charge‑offs, net of recoveries. Loan and lease losses are charged against the allowance for loan and lease losses when management believes the uncollectibility of a loan or lease balance is confirmed. Subsequent recoveries, if any, are credited to the allowance for loan and lease losses. The allowance for loan and lease losses is based on management’s evaluation of the loan and lease portfolio giving consideration to the nature and volume of the portfolio, the value of the underlying collateral, overall portfolio quality, review of specific problem loans or leases, and prevailing economic conditions that may affect the borrower’s ability to pay. While management uses the best information available to make its evaluation, future adjustments to the allowance for loan and lease losses may be necessary if there are significant changes in economic condition. The allowance for loan and lease losses consists of general and specific components. Allocations of the allowance for loan and lease losses not attributable to acquired impaired loans may be made for specific loans and leases, but the entire allowance is available for any loan and lease that, in management’s judgement, should be charged off. The general component covers loans and leases that are collectively evaluated for impairment. Larger groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, and leases are collectively evaluated for impairment, and accordingly, they are not included in the separately identified impairment disclosures. The general component is based on a trailing 12‑quarter weighted average loss rate for each loan category based on the Company’s historical losses and its peer group and adjusted for qualitative and other economic factors. These factors include (1) changes in lending policies and procedures, including changes in underwriting standards and collections, charge‑off and recovery practices; (2) changes in international, national, regional and local conditions; (3) changes in the nature and volume of the portfolio and terms of the loans and leases; (4) changes in experience, depth and ability of lending management and other relevant staff; (5) changes in the volume and severity of past due loans and leases; (6) changes in the quality of the Company’s loan review system; (7) changes in the value of the underlying collateral for collateral dependent loans and leases; (8) existence and effect of any concentrations of credit and changes in the levels of such concentrations; and (9) the effect of other external factors (i.e., competition, legal and regulatory requirements) on the level of estimated credit losses. Based upon management’s judgement of other factors that fall outside of the predefined qualitative or historical loss rates, the allowance for loan and lease losses may include an unallocated component not included in these predefined factors. The specific component relates to loans that are risk‑rated substandard or worse, and 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. Factors considered by management in determining the impairment include payment status, collateral value, strength of guarantor, 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 and are reviewed on a case‑by‑case basis. TDRs are individually evaluated for impairment and are measured at the present value of estimated future cash flows using the loan’s effective rate at origination. If a TDR is considered to be a collateral dependent loan, the loan is reported at the fair value of the collateral, less estimated costs to sell. The allowance for loan losses also includes amounts representing decreases in expected cash flows attributable to credit deterioration of acquired impaired loans. The evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The factors supporting the allowance for loan and lease losses do not diminish the fact that the entire allowance for loan and lease losses not attributable to acquired impaired loans is available to absorb losses in the loan and lease portfolios and related commitment portfolio, respectively. The allowance for loan and lease losses is subject to review by regulatory agencies during examinations and may require us to recognize adjustments to the allowance for loan and lease losses. |
Servicing assets | Servicing assets —Servicing assets are recognized separately when they are acquired through sales of loans. When loans are sold with servicing rights retained, servicing assets are recorded at fair value in accordance with ASC 860. Fair value is based on market prices for comparable servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. Sales of U.S. government guaranteed loans are executed on a servicing retained basis. The standard SBA loan sale agreement is structured to provide the Company with a servicing spread paid from a portion of the interest cash flow of the loan. SBA regulations require the Company to retain a portion of the cash flow from the interest payments received for a sold loan. The USDA loan sale agreements are not standardized with respect to servicing. Note 1—Business and Summary of Significant Accounting Policies (continued) Servicing fee income, which is reported on the Consolidated Statements of Operations as loan servicing revenue, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal. Late fees and ancillary fees related to loan servicing are not material. The Company has elected the fair value measurement method and measures servicing rights at fair value at each reporting date and reports changes in fair value of servicing assets in earnings in the period in which the changes occur, and are recorded as loan servicing asset revaluation on the Consolidated Statements of Operations. The fair value of servicing rights is highly sensitive to changes in underlying assumptions. Changes in the prepayment speed and discount rate assumptions have the most significant impact on the fair value of servicing rights. |
Concentrations of credit risk | Concentrations of credit risk —Most of the Company’s business activity is concentrated with customers located within its principal market areas, with the exception of government guaranteed loans and leasing activities. The Company originates commercial real estate, construction, land development and other land, commercial and industrial, residential real estate, installment and other loans, and leases. Generally, loans are secured by accounts receivable, inventory, deposit accounts, personal property or real estate. Rights to collateral vary and are legally documented to the extent practicable. The Company has a concentration in commercial real estate loans and the ability of borrowers to honor these and other contracts is dependent upon the real estate and general economic conditions within their geographic market. |
Transfers of financial assets | Transfers of financial assets —Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. The Company has assessed that partial sales of financial assets meet the definition of participating interest. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company and the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets. Gains or losses are recognized in the period of sale upon derecognition of the asset. |
Premises and equipment | Premises and equipment —Premises and equipment acquired through a business combination are initially stated at the acquisition date fair value less accumulated depreciation. All other premises and equipment are stated at cost less accumulated depreciation. Depreciation on premises and equipment is recognized on a straight‑line basis over their estimated useful lives ranging from three to 39 years. Land is also carried at its fair value following a business combination and is not subject to depreciation. Leasehold improvements are amortized over the shorter of the life of the related asset or expected term of the underlying lease. Gains and losses on the dispositions of premises and equipment are included in non‑interest income. Expenditures for new premises, equipment and major betterments are capitalized. Normal costs of maintenance and repairs are expensed as incurred. Long‑lived depreciable assets are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amounts may be not recoverable. Impairment exists when the undiscounted expected future cash flows of a long‑lived asset are less than its carrying value. In that event, the Company recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset based on a quoted market price, if applicable, or a discounted cash flow analysis. Impairment losses are recorded in non‑interest expense. |
Assets held for sale | Assets held for sale —Assets held for sale consist of former branch locations and real estate previously purchased for expansion. Assets are considered held for sale when management has approved to sell the assets following a branch closure or other events. The properties are being actively marketed and transferred to assets held for sale based at the lower of its carrying value or its fair value, less estimated costs to sell. Assets held for sale are evaluated periodically for impairment, with any impairment losses recorded in non-interest expense. |
Other real estate owned | Other real estate owned —Other real estate owned (“OREO”) includes real estate assets that have been acquired through, or in lieu of, loan foreclosure or repossession and are to be sold. OREO assets are initially recorded at fair value, less estimated costs to sell, of the collateral of the loan, on the date of foreclosure or repossession, establishing a new cost basis. Adjustments that reduce loan balances to fair value at the time of foreclosure or repossession are recognized as charge‑offs in the allowance for loan and lease losses. Positive adjustments, if any, at the time of foreclosure or repossession are recognized in non‑interest expense. After foreclosure or repossession, management periodically obtains new valuations, and real estate or other assets may be adjusted to a lower carrying amount, determined by the fair value of the asset, less estimated costs to sell. Any subsequent write‑downs are recorded as a decrease in the asset and charged against other real estate owned valuation adjustments. Operating expenses of such properties, net of related income, and gains and losses on their disposition are included in non‑interest expense. Gains on internally financed other real estate owned sales are accounted for in accordance with the methods stated in ASC Topic 360‑20, Real Estate Sales (“ASC 360‑20”). Any losses on the sales of other real estate owned properties are recognized immediately. OREO is recorded net of participating interests sold. |
Goodwill | Goodwill —The excess of the cost of our recapitalization and acquisitions over the fair value of the net assets acquired, including core deposit intangible, consists of goodwill. Goodwill is not amortized but is periodically evaluated for impairment under the provisions of ASC Topic 350, Intangibles—Goodwill and Other (“ASC 350”). Note 1—Business and Summary of Significant Accounting Policies (continued) Impairment testing is performed using either a qualitative or quantitative approach at the reporting unit level. All of the Company’s goodwill is allocated to the Bank, which is the Company’s only applicable reporting unit for the purposes of testing goodwill for impairment. The Company has selected November 30 as the date it performs the annual goodwill impairment test. Additionally, the Company performs a goodwill impairment evaluation on an interim basis when events or circumstances indicate impairment potentially exists. The Company performs impairment testing using a qualitative approach to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others, a material change in the estimated value of the Company based on current market multiples common for community banks of similar size and operations; a significant change in our stock price or market capitalization; a significant adverse change in legal factors or in the business climate; adverse action or assessment by a regulator; and unanticipated competition. If the assessment of qualitative factors indicates that it is not more likely than not that impairment exists, an impairment loss is recognized if the carrying amount of the reporting unit goodwill exceeds its fair value. Based on an annual analysis completed as of November 30, 2019, 2018 and 2017, the Company did not recognize impairment losses during the years ended December 31, 2019, 2018, and 2017. |
Other intangible assets | Other intangible assets —Other intangible assets primarily consist of core deposit intangible assets. Other intangible assets with definite useful lives are amortized to their estimated residual values over their respective estimated useful lives, and are also reviewed periodically for impairment. Amortization of other intangible assets is included in other non‑interest expense. Core deposit intangibles were recognized apart from goodwill based on market valuations. Core deposit intangibles are amortized over an approximate ten year period. In valuing core deposit intangibles, the Company considered variables such as deposit servicing costs, attrition rates and market discount rates. If the estimated fair value is less than the carrying value, the core deposit intangible would be reduced to such value and the impairment recognized as non‑interest expense. The Company did not recognize impairment on its core deposit intangibles for the years ended December 31, 2019, 2018 and 2017. |
Customer relationship intangibles | Customer relationship intangibles —Customer relationship intangibles relate to the value of existing trust and wealth management relationships and are amortized over 12 years. In valuing the relationship intangibles, the Company considered variables such as attrition, investment appreciation, and discount rates. The Company did not recognize impairment on its customer relationship intangibles for the years ended December 31, 2019 and |
Bank-owned life insurance | Bank‑owned life insurance —The Company holds life insurance policies that provide protection against the adverse financial effects that could result from the death of current and former employees, and provide tax deferred income. Although the lives of individual current or former management‑level employees are insured, the Company is the owner and is split beneficiary on certain policies. The Company is exposed to credit risk to the extent an insurance company is unable to fulfill its financial obligations under a policy. Split‑dollar life insurance is recorded as an asset at cash surrender value. Increases in the cash value of these policies, as well as insurance proceeds received, are recorded in other non‑interest income and are not subject to income tax. |
Income taxes | Income taxes —The Company uses the asset and liability method to account for income taxes. The objective of the asset and liability method is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the income tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. The Company’s annual tax rate is based on its income, statutory tax rates and available tax planning opportunities. Deferred tax assets and liabilities are adjusted through the tax provision for the effects of changes in tax laws and rates on the date of enactment. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in determining tax expense and in evaluating tax positions, including evaluating uncertainties. Note 1—Business and Summary of Significant Accounting Policies (continued) Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating loss carryforwards. The Company reviews its deferred tax positions periodically and adjusts the balances as new information becomes available. The Company evaluates the recoverability of these future tax deductions by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. The Company uses short and long‑range business forecasts to provide additional information for its evaluation of the recoverability of deferred tax assets. As of December 31, 2019 and 2018, the Company had no material uncertain tax positions. The Company elects to treat interest and penalties recognized for the underpayment of income taxes as income tax expense. However, interest and penalties imposed by taxing authorities on issues specifically addressed in ASC Topic 740 will be taken out of the tax reserves up to the amount allocated to interest and penalties. The amount of interest and penalties exceeding the amount allocated in the tax reserves will be treated as income tax expense. A deferred tax valuation allowance is established to reduce the net carrying amount of deferred tax assets if it is determined to be more likely than not that all or some of the deferred tax asset will not be realized. At December 31, 2019 and 2018, the Company did not record a deferred tax valuation allowance. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. |
Derivative financial instruments and hedging activities | Derivative financial instruments and hedging activities —The Company enters into derivative transactions principally to protect against the risk of adverse price or interest rate movements on the future cash flows of certain assets. ASC Topic 815, Derivatives and Hedging (“ASC 815”), establishes accounting and reporting standards requiring that every derivative instrument be recorded in the Consolidated Statements of Financial Condition as either an asset or liability measured at its fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and on the type of hedging relationship. On the date the derivative contract is entered into, the Company designates the derivative as a fair value hedge, a cash flow hedge, or a non‑designated derivative. Fair value hedges are accounted for by recording the changes in the fair value of the derivative instrument and the changes in the fair value related to the risk being hedged of the hedged asset or liability on the Consolidated Statements of Financial Condition with corresponding offsets recorded in the Consolidated Statements of Operations. The adjustment to the hedged asset or liability is included in the basis of the hedged item, while the fair value of the derivative is recorded as an asset or liability. Cash flow hedges are accounted for by recording the changes in the fair value of the effective portion of the derivative instrument in other comprehensive income (loss) and are recognized in the Consolidated Statements of Operations when the hedged item affects earnings. Derivative instruments that are not designated as hedges according to accounting guidance are reported in the Consolidated Statements of Financial Condition at fair value and the changes in fair value are recognized as non‑interest income during the period of the change. The Company formally documents the relationship between a derivative instrument and a hedged asset or liability, as well as its risk management objective and strategy for undertaking various hedge transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in the hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. |
Comprehensive income (loss) | Comprehensive income —Recognized revenue, expenses, gains and losses are included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available‑for‑sale securities and adjustments related to cash flow hedges, are reported on a cumulative basis, net of tax effects, as a separate component of equity on the Consolidated Statements of Financial Condition. Changes in such items, along with net income, are components of comprehensive income. |
Advertising expense | Advertising expense —Advertising costs are expensed as incurred. |
Off-balance sheet instruments | Off‑balance sheet instruments —In the ordinary course of business, the Company has entered into off‑balance sheet arrangements consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded in the consolidated financial statements when they are funded or when the related fees are incurred or received. Reserve for unfunded commitments —A reserve for unfunded commitments is maintained at a level that, in the opinion of management, is sufficient to absorb probable losses associated with the Company’s commitment to lend funds under existing agreements, such as letters or lines of credit. Management determines the appropriate reserve for unfunded commitments based upon reviews of individual credit facilities, current economic conditions, the risk characteristics of the various categories of commitments, and other relevant factors. The reserve for unfunded commitments is based on estimates, and ultimate losses may vary from the current estimates. These estimates are evaluated on a quarterly basis and, as adjustments become necessary, they are recognized in earnings in the provision for unfunded commitments in the periods in which they become known. |
Segment reporting | Segment reporting —The Company has one reportable segment. The Company’s chief operating decision maker evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance. Therefore, segments disclosures are not required. |
Loss contingencies | Loss contingencies —Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the Consolidated Financial Statements for the years ended December 31, 2019, 2018, and 2017. |
Share-based compensation | Share‑based compensation —The Company accounts for share‑based compensation in accordance with ASC Topic 718, Compensation—Stock Compensation (“ASC 718”), which requires compensation cost relating to share‑based compensation transactions be recognized in the Consolidated Statements of Operations, based generally upon the grant‑date fair value of the share‑based compensation granted by the Company. Share‑based awards may have service, market or performance conditions. Refer to Note 19—Share-Based Compensation for additional information. |
Earnings per share | Earnings per share — Earnings per common share (“EPS”) is computed under the two-class method. Pursuant to the two-class method, non-vested stock-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and are included in the computation of EPS. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Application of the two-class method resulted in the equivalent earnings per share to the treasury method. Basic earnings per common share is computed by dividing net earnings allocated to common shareholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation and warrants for common stock using the treasury stock method. |
Fair value of assets and liabilities | Fair value of assets and liabilities —Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, including respective accrued interest balances, in an orderly transaction between market participants at the measurement date. The Company determines fair value based upon quoted prices when available or through the use of alternative approaches, such as matrix or model pricing, when market quotes are not readily accessible or available. The valuation techniques used are based on observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. |
Reclassifications | Reclassifications —Some items in prior years consolidated financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior years’ net income or stockholders’ equity. |
Accounting Pronouncements Recently Adopted or Issued | Adopted Accounting Pronouncements The following reflect recent accounting pronouncements that have been adopted or are pending adoption by the Company. As the Company qualifies as an emerging growth company and has elected the extended transition period for complying with new or revised accounting pronouncements, it is not subject to new or revised accounting standards applicable to public companies during the extended transition period. The accounting pronouncements pending adoption below reflect effective dates for the Company as an emerging growth company with the extended transition period. Revenue from Contracts with Customers —In May 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014‑09, deferred by ASU No. 2015‑14 and clarifying standards, , which creates Topics 606 and 610 and supersedes Topic 605, Revenue Recognition. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In April 2016, FASB issued ASU No. 2016-10, . The amendments in this ASU clarify the following two aspects of Topic 606: (1) identifying performance obligations and (2) licensing implementation guidance, while retaining the related principles for those areas. In May 2016, FASB issued ASU No. 2016-12, , amending ASC Topic 606, . The amendments in this ASU affect only several narrow aspects of Topic 606. In November 2017, FASB issued ASU No. 2017-14, amending ASC Topic 606, . The ASU amends the codification to incorporate additional previously issued guidance from the SEC. The SEC issued SAB 116 to bring existing SEC staff guidance into conformity with the FASB’s adoption of and amendments to ASC Topic 606. In general, the new guidance requires companies to use more judgment and make more estimates than under current guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The new authoritative guidance was initially effective for reporting periods after January 1, 2017 but was deferred to January 1, 2018. Given our emerging growth status, the Company adopted this new guidance on January 1, 2019 using the full retrospective method, meaning the standard is applied to all periods presented in the financial statements with the cumulative effect of initially applying the standard recognized at the beginning of the earliest period presented. The majority of the Company’s revenue streams, including interest and dividend income, servicing fees, and gains on sales of loans and investments, are outside the scope of Topic 606. Revenue streams reported as fees and service charges on deposits, ATM and interchange fees, and wealth management and trust income are within the scope of Topic 606. The Company applied the requirements of Topic 606 to the revenue streams that are within its scope. The adoption of Topic 606 did not result in any changes in the either timing or amount of recognized; there was no cumulative effect adjustment to opening retained earnings as no material changes were identified in the timing of revenue recognition. However, the presentation of certain costs associated with our ATM and debit card income were offset against ATM and interchange income. This change in presentation resulted in $1.5 million of expenses for the year ended December 31, 2019, being netted against ATM and interchange fees and reported in non-interest income instead of as other non-interest expense in non-interest expense. In addition, to conform to the current period presentation, $1.1 million and $1.0 million of related expenses for the years ended December 31, 2018 and 2017, respectively, were reclassified from other non-interest expense in non-interest expense to being netted against ATM and interchange fees in non-interest income. The Company elected to apply the practical expedient and therefore does not disclose information about remaining performance obligations that have an original expected term of one year or less and allows the Company to expense costs related to obtaining a contract as incurred when the amortization period would have been one year or less. Note 2—Recently Issued Accounting Pronouncements (continued) The Company adopted ASU 2014-09 using the full retrospective approach. The following table presents the impact of adopting the new revenue standard on our Consolidated Statements of Operations for the periods presented (in thousands): For the Year Ended December 31, 2019 2018 2017 As Reported Balance without Adoption of ASC 606 Effect of Change As Reported Balance without Adoption of ASC 606 Effect of Change As Reported Balance without Adoption of ASC 606 Effect of Change Non-interest income: ATM and interchange fees $ 3,785 $ 5,306 $ (1,521 ) $ 4,313 $ 5,426 $ (1,113 ) $ 4,812 $ 5,840 $ (1,028 ) Non-interest expense: Other non-interest expense $ 11,034 $ 12,555 $ (1,521 ) $ 9,501 $ 10,614 $ (1,113 ) $ 7,824 $ 8,852 $ (1,028 ) Fees and service charges on deposits: Fees and service charges on deposits include transaction and non-transaction based deposit fees. Transaction based fees on deposit accounts are charged to deposit customers for specific services provided to the customer. These fees include such items as wire fees, official check fees, and overdraft fees. These are contracts specific to each individual transaction and do not extend beyond the individual transaction. The performance obligation is completed and the fees are recognized at the time the specific transactional service is provided to the customer. Non-transactional deposit fees are typically monthly account maintenance fees charged on deposit accounts. These are day-to-day contracts that can be cancelled by either party without notice. The performance obligation is satisfied and the fees are recognized on a monthly basis after the service period is completed. ATM and interchange fees: ATM fees represent fees earned when a foreign debit or ATM card is used in a Byline Bank ATM. These fees are assessed and paid at the time of each transaction as the performance obligation is satisfied, which is at the point in time that the transaction is performed and approved. Interchange fees represent fees earned when a debit card issued by the Bank is used to purchase goods or services at a merchant. The merchant's bank pays the Bank a default interchange rate set by MasterCard on a transaction by transaction basis. Interchange fees are assessed as the performance obligation is satisfied, which is at the point in time the card transaction is authorized. The performance obligation is satisfied and the fees are earned when the cost of the transaction is charged to the Bank cardholders’ card. Direct expenses associated with ATM and debit cards are recorded as a net reduction against the ATM and interchange income. Wealth management and trust income: Wealth management and trust income represents fees earned by the Bank for discretionary investment management, trust administration, fiduciary and/or custody services rendered. Fees vary and are based on a contract with the customer. Fee income is determined as a percentage of assets under management and is recognized over the period the underlying account is serviced. Although some trust appointments can last for generations, most contracts are generally cancellable at any time, with the customer subject to a pro-rated fee in the month of termination. Note 2—Recently Issued Accounting Pronouncements (continued) Recognition and Measurement of Financial Assets and Financial Liabilities —In January 2016, FASB issued ASU No. 2016‑01, . The amendments in this ASU require equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value under certain circumstances and require enhanced disclosures about those investments. The amendments simplify the impairment assessment of equity investments without readily determinable fair values. The amendments also eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The amendments require entities to adjust fair value disclosures for financial instruments to be reflected at an exit price. The amendments in this ASU require separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument‑specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This amendment excludes from net income gains or losses that the entity may not realize because those financial liabilities are not usually transferred or settled at their fair values before maturity. The amendments in this ASU require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial statements. The Company adopted the provisions of ASU No. 2016-01 as of January 1, 2019. The adoption of this ASU resulted in the Company reclassifying $1.4 million from other comprehensive income to retained earnings, representing the unrealized gain, net of tax, on available-for-sale for sale equity securities at the date of adoption. The provisions of ASU No. 2016-01 require any future changes in fair value of equity securities to be recorded in the Consolidated Statements of Operations which could result in additional volatility in non-interest income. At December 31, 2018, the Company held $6.6 million of available-for-sale equity investment securities, which were previously reported as available-for-sale securities, at fair value, and are now reported as equity and other securities, at fair value. In addition, the adoption of this ASU resulted in changing how the Company estimates the fair value of portfolio loans and leases for disclosure purposes. Fair values are estimated first by stratifying the portfolios of loans and leases with similar financial characteristics. Loans and leases are segregated by type such as commercial real estate, residential mortgage, construction, land, and development, commercial and industrial, consumer and other. Each loan and lease category is further segmented into fixed- and adjustable-rate interest terms. An estimate of fair value is then calculated based on discounted cash flows using as a discount rate based on the current rate offered on similar products, plus an adjustment for liquidity to reflect the non-homogeneous nature of the loans and leases, as well as a quarterly loss rate based on historical losses to arrive at an estimated exit price fair value. Fair value for impaired loans and leases is also based on recent appraisals or estimated cash flows discounted using rates commensurate with risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows and discount rates are judgmentally determined using available market information and specific borrower information. Derivatives and Hedging (Topic 815) —In August 2017, FASB issued ASU No. 2017-12, . The amendments in this ASU better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The Company adopted the provisions of ASU No. 2017-12 on January 1, 2019. Upon adoption, the Company elected to reclassify $94.8 million of securities held-to-maturity to securities available-for-sale, which did not impact on the Consolidated Statements of Operations. Note 2—Recently Issued Accounting Pronouncements (continued) Compensation—Stock Compensation (Topic 718) —In May 2017, the FASB issued ASU 2017-09, . The amendments in the ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all of the following are met: (1) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified, (3) the classification of the modified award is an equity instrument or liability instrument is the same as the classification of the original award immediately before the original award is modified. The amendments are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued. The amendments should be applied prospectively to an award modified on or after the adoption date. Given our emerging growth status, t he Company adopted the provisions of ASU No. 2017-09 on January 1, 2019, which did not have a material impact on the Company’s Consolidated Financial Statements. Statement of Cash Flows (Topic 230) —In August 2016, FASB issued ASU No. 2016‑15, . There is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230 and other Topics. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. Those eight issues are (1) debt prepayment or debt extinguishment costs, (2) settlement of zero‑coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from the settlement of corporate‑owned life insurance policies, including bank‑owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transactions, and (8) separately identifiable cash flows and application of the predominance principle. Current GAAP either is unclear or does not include specific guidance on these eight cash flow classification issues. These amendments provide guidance for each of the eight issues, thereby reducing current and potential future diversity in practice. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Given the Company’s emerging growth status, the new authoritative guidance will be effective for reporting periods after January 1, 2019. The Company adopted the provisions of ASU No. 2016-15 on January 1, 2019, which did not have a material impact on the Company’s Consolidated Financial Statements. In November 2016, the FASB issued ASU No. 2016‑18, Statement of Cash Flows (Topic 230), Restricted Cash he Company adopted Business Combinations (Topic 805) —In January 2017, the FASB issued ASU No. 2017‑01, . The guidance clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. This guidance is effective for annual and interim periods beginning after December 15, 2017. Given our emerging growth status, the Company adopted the provisions of ASU No. 2017-01 on January 1, 2019, which did not have a material impact on the Company’s Consolidated Financial Statements. Note 2—Recently Issued Accounting Pronouncements (continued) Issued Accounting Pronouncements Pending Adoption Leases (Topic 842) —In February 2016, FASB issued ASU No. 2016‑02, . The amendments in this ASU require lessees to recognize the following for all leases (with the exception of short-term) at the commencement date: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The amendments in this ASU leave lessor accounting largely unchanged, although certain targeted improvements were made to align lessor accounting with the lessee accounting model. This ASU simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is evaluating the new guidance and its impact on the Company’s Consolidated Statements of Operations and Consolidated Statements of Financial Condition. In November 2019, FASB issued ASU No. 2019-10, , which delays the effective date of this ASU for entities not classified as Public Business Entities (PBEs). Our status as an emerging growth company makes us eligible for this deferral. Assuming the Company remains an emerging growth company, the new authoritative guidance is effective for fiscal years beginning after December 15, 2020, and interim periods with fiscal years beginning after December 15, 2021. The Company expects an increase in assets and liabilities as a result of recognizing additional right-of-use assets and liabilities under lease contracts in which the Company is lessee. While the Company has not quantified the impact of this ASU on its direct financing lease portfolio, it does not expect a material change in its accounting for the initial direct costs related to these leases. Financial Instruments—Credit Losses (Topic 326) —In June 2016, FASB issued ASU No. 2016‑13, . Current GAAP requires an “incurred loss” methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU require a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses will be based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be more useful to users of the financial statements. In November 2019, FASB issued ASU No. 2019-10, , which delays the effective date of the ASU for entities not classified as PBEs. Assuming the Company remains an emerging growth company, the new authoritative guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is in process of implementation and determining the impact that this ASU will have on the Company’s Consolidated Financial Statements. Note 2—Recently Issued Accounting Pronouncements (continued) Nonrefundable Fees and Other Costs (Subtopic 310‑20) —In March 2017, FASB issued ASU No. 2017‑08, . The amendments in the ASU shorten the amortization period for certain callable debt securities held at a premium at the earliest call date. Under current GAAP, the Company amortizes the premium as an adjustment of yield over the contractual life of the instrument. As a result, upon exercise of a call on a callable debt security held at a premium, the unamortized premium is charged to earnings. The ASU shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. However, the amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is required to apply the amendments on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Assuming the Company remains an emerging growth company, the new authoritative guidance will be effective for reporting periods after January 1, 2020. The provisions of ASU No. 2017-08 will not have a material impact on the Company’s Consolidated Financial Statements. Income Taxes (Topic 740) —In December 2019, FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes . The amendments in the ASU simplify the accounting for income taxes by removing the following: the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items; the exception to the requirement to or not to recognize a deferred tax liability for a foreign entity when it becomes an equity method investment or it becomes a subsidiary, respectively; and the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in the ASU changes current authoritative guidance by requiring the recognition of franchise tax that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; requiring an evaluation when a step up in the tax basis of goodwill should be considered part the of business combination; specifying that it is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements; and requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The amendments are effective for annual periods beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022. Early adoption is permitted. Assuming the Company remains an emerging growth company, the new authoritative guidance will be effective for reporting periods after January 1, 2022. The Company is currently evaluating the provisions of ASU No. 2019-12 to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements. |
Accounting Pronouncements Rec_2
Accounting Pronouncements Recently Adopted or Issued (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Impact of Adopting the New Revenue Standard on Consolidated Statements of Operations | The Company adopted ASU 2014-09 using the full retrospective approach. The following table presents the impact of adopting the new revenue standard on our Consolidated Statements of Operations for the periods presented (in thousands): For the Year Ended December 31, 2019 2018 2017 As Reported Balance without Adoption of ASC 606 Effect of Change As Reported Balance without Adoption of ASC 606 Effect of Change As Reported Balance without Adoption of ASC 606 Effect of Change Non-interest income: ATM and interchange fees $ 3,785 $ 5,306 $ (1,521 ) $ 4,313 $ 5,426 $ (1,113 ) $ 4,812 $ 5,840 $ (1,028 ) Non-interest expense: Other non-interest expense $ 11,034 $ 12,555 $ (1,521 ) $ 9,501 $ 10,614 $ (1,113 ) $ 7,824 $ 8,852 $ (1,028 ) |
Acquisition of a Business (Tabl
Acquisition of a Business (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Estimates Fair Values of Assets and Liabilities Assumed as of Acquisition Date | The following table presents a summary of the estimated fair values of assets acquired and liabilities assumed as of the acquisition date: Preliminary Estimates April 30, 2019 Oak Park River Forest May 31, 2018 First Evanston Assets Cash and cash equivalents $ 10,469 $ 47,378 Securities available-for-sale 30,343 128,063 Restricted stock 414 1,360 Loans 257,423 916,011 Premises and equipment 3,488 15,890 Other real estate owned 2,201 — Other intangible assets 6,220 22,276 Bank-owned life insurance 3,485 — Deferred tax assets, net 5,925 2,302 Other assets 1,231 8,845 Total assets acquired 321,199 1,142,125 Liabilities Deposits 290,171 1,022,268 Line of credit 5,655 — Federal Home Loan Bank advances 5,300 — Junior subordinated debentures — 8,497 Accrued expenses and other liabilities 4,766 5,844 Total liabilities assumed 305,892 1,036,609 Net assets acquired $ 15,307 $ 105,516 Consideration paid Common stock (2019 - 1,464,558 shares issued at $20.02 per share, 2018 - 6,682,850 shares issued at $21.62 per share) 29,320 144,483 Outstanding stock options converted to Byline stock options — 7,644 Cash paid 6,163 27,004 Total consideration paid 35,483 179,131 Goodwill $ 20,176 $ 73,615 |
Summary of Acquired Non-Impaired Loans as of Acquisition Date | The following table presents the acquired non-impaired loans as of the acquisition date: Preliminary Estimates April 30, 2019 Oak Park River Forest May 31, 2018 First Evanston Fair value $ 204,496 $ 890,986 Gross contractual amounts receivable 254,755 1,057,374 Estimate of contractual cash flows not expected to be collected (1) 12,987 36,544 Estimate of contractual cash flows expected to be collected 241,768 1,020,830 (1) Includes interest payments not expected to be collected due to loan prepayments as well as principal and interest payments not expected to be collected due to customer default. |
Summary of Pro Forma Information for Results of Operations | The following table provides the pro forma information for the results of operations for the years ended December 31, 2019 and 2018, as if the acquisitions had occurred on January 1, 2018. The pro forma results combine the historical results of First Evanston and Oak Park River Forest into the Company’s Consolidated Statements of Operations, including the impact of certain acquisition accounting adjustments, which includes loan discount accretion, intangible assets amortization, deposit premium accretion and borrowing net discount amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisitions actually occurred on January 1, 2018. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. The acquisition-related expenses that have been recognized are included in net income in the following table. Years ended December 31, 2019 2018 Total revenues (net interest income and non-interest income) $ 272,081 $ 274,108 Net income 57,797 61,356 Earnings per share—basic 1.47 1.61 Earnings per share—diluted 1.45 1.57 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost and Fair Values of Securities Available-for-sale and Held to Maturity | The following tables summarize the amortized cost and fair values of securities available-for-sale, securities held-to-maturity and equity and other securities at December 31, 2019 and 2018 and the corresponding amounts of gross unrealized gains and losses: 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale U.S. Treasury Notes $ 41,403 $ 427 $ — $ 41,830 U.S. Government agencies 165,162 542 (754 ) 164,950 Obligations of states, municipalities, and political subdivisions 92,806 2,075 (49 ) 94,832 Residential mortgage-backed securities Agency 490,427 2,163 (2,354 ) 490,236 Non-agency 109,501 593 (272 ) 109,822 Commercial mortgage-backed securities Agency 159,650 1,092 (1,041 ) 159,701 Non-agency 31,144 130 — 31,274 Corporate securities 48,796 571 (37 ) 49,330 Asset-backed securities 44,515 — (198 ) 44,317 Total $ 1,183,404 $ 7,593 $ (4,705 ) $ 1,186,292 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Held-to-maturity Obligations of states, municipalities, and political subdivisions $ 4,412 $ 86 $ — $ 4,498 Total $ 4,412 $ 86 $ — $ 4,498 Note 4—Securities (continued) 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale U.S. Treasury Notes $ 52,775 $ 81 $ (189 ) $ 52,667 U.S. Government agencies 187,427 367 (1,296 ) 186,498 Obligations of states, municipalities, and political subdivisions 60,686 133 (586 ) 60,233 Residential mortgage-backed securities Agency 284,038 101 (11,176 ) 272,963 Non-agency 84,998 199 (1,576 ) 83,621 Commercial mortgage-backed securities Agency 93,543 55 (3,164 ) 90,434 Non-agency 31,458 — (1,000 ) 30,458 Corporate securities 34,716 67 (610 ) 34,173 Other securities 4,613 2,127 (131 ) 6,609 Total $ 834,254 $ 3,130 $ (19,728 ) $ 817,656 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Held-to-maturity Obligations of states, municipalities, and political subdivisions $ 23,835 $ 40 $ (210 ) $ 23,665 Residential mortgage-backed securities Agency 40,082 93 (531 ) 39,644 Non-agency 35,349 — (919 ) 34,430 Total $ 99,266 $ 133 $ (1,660 ) $ 97,739 |
Summary of Gross Unrealized Losses and Fair Values, Aggregated by Investment Category and Length of Individual Securities Continuous Unrealized Loss Position Available-for-sale and Held to Maturity | Gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2019 and 2018 are summarized as follows: Less than 12 Months 12 Months or Longer Total 2019 # of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-sale U.S. Government agencies 8 $ 49,318 $ (662 ) $ 20,283 $ (92 ) $ 69,601 $ (754 ) Obligations of states, municipalities and political subdivisions 7 13,309 (45 ) 1,419 (4 ) 14,728 (49 ) Residential mortgage-backed securities Agency 50 132,703 (666 ) 193,363 (1,688 ) 326,066 (2,354 ) Non-agency 9 36,902 (206 ) 10,126 (66 ) 47,028 (272 ) Commercial mortgage-backed securities Agency 13 67,649 (563 ) 32,678 (478 ) 100,327 (1,041 ) Corporate securities 4 6,103 (37 ) — — 6,103 (37 ) Asset-backed securities 8 37,738 (198 ) — — 37,738 (198 ) Total 99 $ 343,722 $ (2,377 ) $ 257,869 $ (2,328 ) $ 601,591 $ (4,705 ) Less than 12 Months 12 Months or Longer Total 2018 # of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-sale U.S. Treasury Notes 18 $ 23,835 $ (52 ) $ 9,865 $ (137 ) $ 33,700 $ (189 ) U.S. Government agencies 25 43,487 (80 ) 50,101 (1,216 ) 93,588 (1,296 ) Obligations of states, municipalities and political subdivisions 56 13,926 (97 ) 18,563 (489 ) 32,489 (586 ) Residential mortgage-backed securities Agency 42 4,288 (45 ) 254,121 (11,131 ) 258,409 (11,176 ) Non-agency 8 59,107 (1,378 ) 4,009 (198 ) 63,116 (1,576 ) Commercial mortgage-backed securities Agency 9 21,356 (447 ) 52,640 (2,717 ) 73,996 (3,164 ) Non-agency 5 — — 30,458 (1,000 ) 30,458 (1,000 ) Corporate securities 15 25,762 (342 ) 4,642 (268 ) 30,404 (610 ) Other securities 1 — — 2,844 (131 ) 2,844 (131 ) Total 179 $ 191,761 $ (2,441 ) $ 427,243 $ (17,287 ) $ 619,004 $ (19,728 ) Note 4—Securities (continued) Less than 12 Months 12 Months or Longer Total 2018 # of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Held-to-maturity Obligations of states, municipalities, and political subdivisions 23 $ 8,127 $ (58 ) $ 8,792 $ (152 ) $ 16,919 $ (210 ) Residential mortgage-backed securities Agency 16 6,625 (150 ) 21,139 (381 ) 27,764 (531 ) Non-agency 7 21,499 (503 ) 12,931 (416 ) 34,430 (919 ) Total 46 $ 36,251 $ (711 ) $ 42,862 $ (949 ) $ 79,113 $ (1,660 ) |
Summary of Proceeds From Sales of Securities Available-for-sale and Associated Gains and Losses | The proceeds from all sales and calls of securities were available-for-sale, and the associated gains and losses for the years ended December 31, 2019, 2018, and 2017 are listed below: 2019 2018 2017 Proceeds $ 92,103 $ 5,134 $ 8 Gross gains 1,274 164 8 Gross losses 123 — — |
Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | At December 31, 2019, the amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Available-for-sale Due in one year or less $ 51,901 $ 52,093 Due from one to five years 99,605 100,593 Due from five to ten years 136,479 137,843 Due after ten years 104,697 104,730 Mortgage and asset-backed securities 790,722 791,033 Total $ 1,183,404 $ 1,186,292 Held-to-maturity Due from one to five years $ 3,800 $ 3,866 Due from five to ten years 612 632 Total $ 4,412 $ 4,498 |
Loans and Lease Receivables (Ta
Loans and Lease Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Outstanding Loan and Lease Receivables | Outstanding loan and lease receivables as of December 31, 2019 and 2018 were categorized as follows: 2019 2018 Commercial real estate $ 1,275,058 $ 1,261,594 Residential real estate 711,499 704,899 Construction, land development, and other land 279,403 186,258 Commercial and industrial 1,330,418 1,145,240 Installment and other 6,484 13,675 Lease financing receivables 177,774 187,797 Total loans and leases 3,780,636 3,499,463 Net unamortized deferred fees and costs 2,289 (1,293 ) Initial direct costs 2,736 3,456 Allowance for loan and lease losses (31,936 ) (25,201 ) Net loans and leases $ 3,753,725 $ 3,476,425 2019 2018 Lease financing receivables Net minimum lease payments $ 193,359 $ 204,646 Unguaranteed residual values 1,347 1,535 Unearned income (16,932 ) (18,384 ) Total lease financing receivables 177,774 187,797 Initial direct costs 2,736 3,456 Lease financial receivables before allowance for lease losses $ 180,510 $ 191,253 |
Summary of Minimum Annual Lease Payments for Lease Financing Receivables | The minimum annual lease payments for lease financing receivables as of December 31, 2019 are summarized as follows: Minimum Lease Payments 2020 $ 71,820 2021 55,396 2022 37,696 2023 20,466 2024 7,475 Thereafter 506 Total $ 193,359 |
Summary of Balances for Each Respective Loan and Lease Category | The following tables summarize the balances for each respective loan and lease category as of December 31, 2019 and 2018: 2019 Originated Acquired Impaired Acquired Non- Impaired Total Commercial real estate $ 792,263 $ 135,914 $ 348,365 $ 1,276,542 Residential real estate 483,072 100,223 128,527 711,822 Construction, land development, and other land 235,794 5,373 37,490 278,657 Commercial and industrial 1,160,996 16,909 153,660 1,331,565 Installment and other 5,372 249 944 6,565 Lease financing receivables 158,155 — 22,355 180,510 Total loans and leases $ 2,835,652 $ 258,668 $ 691,341 $ 3,785,661 2018 Originated Acquired Impaired Acquired Non- Impaired Total Commercial real estate $ 652,234 $ 146,808 $ 462,565 $ 1,261,607 Residential real estate 466,309 113,934 124,659 704,902 Construction, land development, and other land 144,128 3,779 37,442 185,349 Commercial and industrial 803,508 12,617 328,672 1,144,797 Installment and other 11,718 404 1,596 13,718 Lease financing receivables 159,901 — 31,352 191,253 Total loans and leases $ 2,237,798 $ 277,542 $ 986,286 $ 3,501,626 |
Schedule of Estimated Fair Value of Impaired Loans Acquired at Acquisition | The following table presents a reconciliation of the undiscounted contractual cash flows, non‑accretable difference, accretable yield, and fair value of acquired impaired loans as of May 31, 2018 (First Evanston) and April 30, 2019 (Oak Park River Forest): Preliminary Estimates April 30, 2019 May 31, 2018 Oak Park River Forest First Evanston Undiscounted contractual cash flows $ 74,092 $ 33,594 Undiscounted cash flows not expected to be collected (non-accretable difference) (11,401 ) (5,003 ) Undiscounted cash flows expected to be collected 62,691 28,591 Accretable yield at acquisition (9,764 ) (3,566 ) Estimated fair value of impaired loans acquired at acquisition $ 52,927 $ 25,025 |
Summary of Outstanding Balance and Carrying Amount of All Acquired Impaired Loans | The outstanding balance and carrying amount of all acquired impaired loans are summarized below. The balances do not include an allowance for loan and lease losses of $2.8 million and $2.7 million, at December 31, 2019 and 2018, respectively. 2019 2018 Outstanding Balance Carrying Value Outstanding Balance Carrying Value Commercial real estate $ 189,969 $ 135,914 $ 216,137 $ 146,808 Residential real estate 151,641 100,223 173,962 113,934 Construction, land development, and other land 14,841 5,373 11,962 3,779 Commercial and industrial 23,330 16,909 24,972 12,617 Installment and other 1,099 249 1,735 404 Total acquired impaired loans $ 380,880 $ 258,668 $ 428,768 $ 277,542 |
Summary of Changes in Accretable Yield for Acquired Impaired Loans | The following table summarizes the changes in accretable yield for acquired impaired loans for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Beginning balance $ 37,115 $ 36,446 $ 36,868 Additions 9,764 3,566 — Accretion to interest income (24,535 ) (23,982 ) (24,597 ) Reclassification from nonaccretable difference 17,665 21,085 24,175 Ending balance $ 40,009 $ 37,115 $ 36,446 |
Schedule of Unpaid Principal Balance and Carrying Value for Acquired Non-Impaired Loans and Leases | The unpaid principal balance and carrying value for acquired non‑impaired loans and leases at December 31, 2019 and 2018 were as follows: 2019 2018 Unpaid Principal Balance Carrying Value Unpaid Principal Balance Carrying Value Commercial real estate $ 356,787 $ 348,365 $ 473,262 $ 462,565 Residential real estate 130,412 128,527 127,478 124,659 Construction, land development, and other land 38,416 37,490 38,494 37,442 Commercial and industrial 159,599 153,660 344,879 328,672 Installment and other 971 944 1,831 1,596 Lease financing receivables 23,976 22,355 32,977 31,352 Total acquired non-impaired loans and leases $ 710,161 $ 691,341 $ 1,018,921 $ 986,286 |
Allowance for Loan and Lease _2
Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Allowance for Loan and Lease Losses and Corresponding Loan and Lease Balances | The following tables summarize the balance and activity within the allowance for loan and lease losses, the components of the allowance for loan and lease losses in terms of loans and leases individually and collectively evaluated for impairment, and corresponding loan and lease balances by type for the years ended December 31, 2019, 2018, and 2017 are as follows: 2019 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Allowance for loan and lease losses Beginning balance $ 7,540 $ 1,751 $ 466 $ 12,932 $ 49 $ 2,463 $ 25,201 Provision 4,805 67 144 14,460 15 1,217 20,708 Charge-offs (4,950 ) (113 ) — (8,171 ) (16 ) (2,609 ) (15,859 ) Recoveries 570 285 — 156 2 873 1,886 Ending balance $ 7,965 $ 1,990 $ 610 $ 19,377 $ 50 $ 1,944 $ 31,936 Ending balance: Individually evaluated for impairment $ 2,614 $ 124 $ — $ 7,952 $ — $ — $ 10,690 Collectively evaluated for impairment 4,414 1,191 584 10,287 50 1,944 18,470 Loans acquired with deteriorated credit quality 937 675 26 1,138 — — 2,776 Total allowance for loan and lease losses $ 7,965 $ 1,990 $ 610 $ 19,377 $ 50 $ 1,944 $ 31,936 2019 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Loans and leases ending balance: Individually evaluated for impairment $ 26,396 $ 2,398 $ 2,644 $ 37,303 $ — $ — $ 68,741 Collectively evaluated for impairment 1,114,232 609,201 270,640 1,277,353 6,316 180,510 3,458,252 Loans acquired with deteriorated credit quality 135,914 100,223 5,373 16,909 249 — 258,668 Total loans and leases $ 1,276,542 $ 711,822 $ 278,657 $ 1,331,565 $ 6,565 $ 180,510 $ 3,785,661 Note 6—Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments (continued) 2018 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Allowance for loan and lease losses Beginning balance $ 4,794 $ 1,638 $ 222 $ 7,418 $ 41 $ 2,593 $ 16,706 Provision 4,543 113 662 12,089 68 1,320 18,795 Charge-offs (1,865 ) — (418 ) (6,944 ) (60 ) (2,517 ) (11,804 ) Recoveries 68 — — 369 — 1,067 1,504 Ending balance $ 7,540 $ 1,751 $ 466 $ 12,932 $ 49 $ 2,463 $ 25,201 Ending balance: Individually evaluated for impairment $ 2,191 $ 61 $ — $ 4,397 $ — $ — $ 6,649 Collectively evaluated for impairment 4,105 1,323 466 7,413 47 2,463 15,817 Loans acquired with deteriorated credit quality 1,244 367 — 1,122 2 — 2,735 Total allowance for loan and lease losses $ 7,540 $ 1,751 $ 466 $ 12,932 $ 49 $ 2,463 $ 25,201 2018 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Loans and leases ending balance: Individually evaluated for impairment $ 11,983 $ 2,137 $ — $ 21,794 $ — $ — $ 35,914 Collectively evaluated for impairment 1,102,816 588,831 181,570 1,110,386 13,314 191,253 3,188,170 Loans acquired with deteriorated credit quality 146,808 113,934 3,779 12,617 404 — 277,542 Total loans and leases $ 1,261,607 $ 704,902 $ 185,349 $ 1,144,797 $ 13,718 $ 191,253 $ 3,501,626 2017 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Allowance for loan and lease losses Beginning balance $ 1,945 $ 2,483 $ 742 $ 4,196 $ 334 $ 1,223 $ 10,923 Provision (release) 4,343 (405 ) (520 ) 6,058 34 3,143 12,653 Charge-offs (1,494 ) (440 ) — (2,836 ) (327 ) (3,099 ) (8,196 ) Recoveries — — — — — 1,326 1,326 Ending balance $ 4,794 $ 1,638 $ 222 $ 7,418 $ 41 $ 2,593 $ 16,706 Ending balance: Individually evaluated for impairment $ 1,101 $ 158 $ — $ 2,692 $ 14 $ — $ 3,965 Collectively evaluated for impairment 1,765 1,047 145 3,308 9 2,593 8,867 Loans acquired with deteriorated credit quality 1,928 433 77 1,418 18 — 3,874 Total allowance for loan and lease losses $ 4,794 $ 1,638 $ 222 $ 7,418 $ 41 $ 2,593 $ 16,706 Note 6—Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments (continued) 2017 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Loans and leases ending balance: Individually evaluated for impairment $ 13,884 $ 2,429 $ — $ 14,784 $ 14 $ — $ 31,111 Collectively evaluated for impairment 711,097 430,227 99,483 496,446 3,752 177,686 1,918,691 Loans acquired with deteriorated credit quality 166,712 144,562 5,946 10,008 462 — 327,690 Total loans and leases $ 891,693 $ 577,218 $ 105,429 $ 521,238 $ 4,228 $ 177,686 $ 2,277,492 |
Summary of Recorded Investment, Unpaid Principal Balance, and Related Allowance for Loans and Leases Considered Impaired | The following tables summarize the recorded investment, unpaid principal balance, related allowance, average recorded investment, and interest income recognized for loans and leases considered impaired as of December 31, 2019, 2018, and 2017, which excludes acquired impaired loans: 2019 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial real estate $ 16,556 $ 19,808 $ — $ 11,218 $ 1,257 Residential real estate 2,165 2,253 — 2,285 192 Construction, land development, and other land 2,644 3,000 — 220 191 Commercial and industrial 19,211 20,398 — 14,137 1,487 With an allowance recorded Commercial real estate 9,840 10,691 2,614 8,863 711 Residential real estate 233 233 124 195 7 Commercial and industrial 18,092 19,285 7,952 14,989 1,010 Total impaired loans $ 68,741 $ 75,668 $ 10,690 $ 51,907 $ 4,855 Note 6—Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments (continued) 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial real estate $ 6,110 $ 7,693 $ — $ 8,968 $ 590 Residential real estate 1,886 1,858 — 1,917 43 Commercial and industrial 11,193 13,961 — 8,680 483 With an allowance recorded Commercial real estate 5,873 6,313 2,191 5,328 270 Residential real estate 251 253 61 311 4 Commercial and industrial 10,601 11,153 4,397 9,472 749 Installment and other — — — 11 — Total impaired loans $ 35,914 $ 41,231 $ 6,649 $ 34,687 $ 2,139 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded Commercial real estate $ 11,425 $ 12,936 $ — $ 10,482 $ 525 Residential real estate 2,075 2,046 — 1,781 72 Construction, land development and other land — — — 295 2 Commercial and industrial 5,470 6,774 — 2,875 265 With an allowance recorded Commercial real estate 2,459 2,634 1,101 1,988 187 Residential real estate 354 351 158 422 6 Construction, land development and other land — — — 14 — Commercial and industrial 9,314 9,724 2,692 3,460 486 Installment and other 14 14 14 162 12 Total impaired loans $ 31,111 $ 34,479 $ 3,965 $ 21,479 $ 1,555 |
Summary of Risk Rating Categories of Loans and Leases Considered for Inclusion in Allowance for Loan and Lease Losses Calculation | The following tables summarize the risk rating categories of the loans and leases considered for inclusion in the allowance for loan and lease losses calculation, excluding acquired impaired loans, as of December 31, 2019 and 2018: 2019 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Pass $ 984,881 $ 584,363 $ 247,775 $ 1,087,856 $ 6,013 $ 177,696 $ 3,088,584 Watch 99,803 21,856 18,181 159,282 302 8 299,432 Special Mention 27,484 3,648 4,684 26,944 — 1,799 64,559 Substandard 28,460 1,732 2,644 40,574 1 728 74,139 Doubtful — — — — — 279 279 Loss — — — — — — — Total $ 1,140,628 $ 611,599 $ 273,284 $ 1,314,656 $ 6,316 $ 180,510 $ 3,526,993 2018 Commercial Real Estate Residential Real Estate Construction, Land Development, and Other Land Commercial and Industrial Installment and Other Lease Financing Receivables Total Pass $ 1,009,041 $ 553,665 $ 147,123 $ 962,291 $ 9,997 $ 188,314 $ 2,870,431 Watch 76,276 29,522 31,376 112,996 3,302 80 253,552 Special Mention 17,602 5,656 3,071 34,314 — 1,794 62,437 Substandard 11,880 2,125 — 22,579 15 818 37,417 Doubtful — — — — — 247 247 Loss — — — — — — — Total $ 1,114,799 $ 590,968 $ 181,570 $ 1,132,180 $ 13,314 $ 191,253 $ 3,224,084 |
Summary of Contractual Delinquency Information | The following tables summarize contractual delinquency information for acquired non-impaired and originated loans and leases by category as of December 31, 2019 and 2018: 2019 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days and Accruing Non- accrual Total Past Due Current Total Commercial real estate $ 14,269 $ 5,153 $ — $ 12,274 $ 31,696 $ 1,108,932 $ 1,140,628 Residential real estate 3,187 460 — 1,371 5,018 606,581 611,599 Construction, land development, and other land — 4,460 — — 4,460 268,824 273,284 Commercial and industrial 7,789 3,594 — 22,151 33,534 1,281,122 1,314,656 Installment and other 133 2 — 1 136 6,180 6,316 Lease financing receivables 585 532 — 475 1,592 178,918 180,510 Total $ 25,963 $ 14,201 $ — $ 36,272 $ 76,436 $ 3,450,557 $ 3,526,993 Note 6—Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments (continued) 2018 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days and Accruing Non- accrual Total Past Due Current Total Commercial real estate $ 6,659 $ 2,145 $ — $ 9,484 $ 18,288 $ 1,096,511 $ 1,114,799 Residential real estate 4,488 711 — 1,815 7,014 583,954 590,968 Construction, land development, and other land — — — — — 181,570 181,570 Commercial and industrial 5,829 1,376 — 13,932 21,137 1,111,043 1,132,180 Installment and other 1,932 4 — 12 1,948 11,366 13,314 Lease financing receivables 789 530 — 591 1,910 189,343 191,253 Total $ 19,697 $ 4,766 $ — $ 25,834 $ 50,297 $ 3,173,787 $ 3,224,084 |
Summary of TDR's by Loan Category | . The tables below present TDRs by loan category as of December 31, 2019, 2018, and 2017. Refer to Note 1—Summary of Significant Accounting Policies for the accounting policy for TDRs. 2019 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserves Accruing: Commercial real estate 5 $ 1,451 $ 1,451 $ — $ 223 Commercial and industrial 2 129 129 — 118 Residential real estate 2 191 191 — — Total accruing 9 1,771 1,771 — 341 Non-accruing: Commercial real estate 6 2,777 2,600 177 513 Commercial and industrial 11 8,048 6,096 1,952 1,312 Residential real estate 1 104 104 — — Total non-accruing 18 10,929 8,800 2,129 1,825 Total troubled debt restructurings 27 $ 12,700 $ 10,571 $ 2,129 $ 2,166 2018 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserves Accruing: Commercial real estate 4 $ 1,508 $ 1,508 $ — $ 113 Commercial and industrial 2 191 191 — 100 Residential real estate 1 114 114 — — Total accruing 7 1,813 1,813 — 213 Non-accruing: Commercial real estate 9 2,512 2,471 41 743 Commercial and industrial 6 6,714 4,843 1,871 1,290 Total non-accruing 15 9,226 7,314 1,912 2,033 Total troubled debt restructurings 22 $ 11,039 $ 9,127 $ 1,912 $ 2,246 Note 6—Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments (continued) 2017 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserves Accruing: Commercial real estate 3 $ 912 $ 912 $ — $ — Residential real estate 1 149 149 — — Total accruing 4 1,061 1,061 — — Non-accruing: Commercial real estate 2 743 743 — 111 Commercial and industrial 3 1,246 759 487 246 Residential real estate 1 67 67 — — Total non-accruing 6 2,056 1,569 487 357 Total troubled debt restructurings 10 $ 3,117 $ 2,630 $ 487 $ 357 |
Summary of Loans Modified as Troubled Debt Restructurings | Loans modified as troubled debt restructurings that occurred during the years ended December 31, 2019, 2018, and 2017: For the Year Ended December 31, 2019 2018 2017 Accruing: Beginning balance $ 1,813 $ 1,061 $ 602 Additions 113 37 1,017 Net payments (940 ) (86 ) (144 ) Net transfers from (to) non-accrual 785 801 (414 ) Ending balance 1,771 1,813 1,061 Non-accruing: Beginning balance 7,314 1,569 552 Additions 5,254 8,408 681 Net payments (2,310 ) (1,718 ) (78 ) Charge-offs (673 ) (144 ) — Net transfers from (to) accrual (785 ) (801 ) 414 Ending balance 8,800 7,314 1,569 Total troubled debt restructurings $ 10,571 $ 9,127 $ 2,630 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transfers And Servicing [Abstract] | |
Activity for Servicing Assets and Related Changes in Fair Value | Activity for servicing assets and the related changes in fair value for the years ended December 31, 2019, 2018 and 2017 is as follows: 2019 2018 2017 Beginning balance $ 19,693 $ 21,400 $ 21,091 Additions, net 6,417 7,562 6,250 Changes in fair value (6,639 ) (9,269 ) (5,941 ) Ending balance $ 19,471 $ 19,693 $ 21,400 |
Unpaid Principal Balances of Loans Serviced for Others | The unpaid principal balances of these loans serviced for others were as follows as December 31, 2019 and 2018: 2019 2018 Loan portfolios serviced for: SBA guaranteed loans $ 1,231,959 $ 1,151,915 USDA guaranteed loans 119,047 106,184 Total $ 1,351,006 $ 1,258,099 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Change in Other Real Estate Owned | The following table presents the change in other real estate owned (“OREO”) for the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 Beginning balance $ 5,041 $ 10,626 $ 16,570 Acquisition of OREO through business combination 2,201 — — Net additions to OREO 5,910 2,163 6,690 Proceeds from sales of OREO (3,173 ) (7,495 ) (13,898 ) Gains on sales of OREO 428 383 2,147 Valuation adjustments (511 ) (636 ) (883 ) Ending balance $ 9,896 $ 5,041 $ 10,626 |
Premises and Equipment and As_2
Premises and Equipment and Assets Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule for Classification of Premises and Equipment | Classifications of premises and equipment as of December 31, 2019 and 2018 and were as follows: 2019 2018 Premises $ 54,798 $ 55,112 Furniture, fixtures and equipment 16,987 13,593 Leasehold improvements 5,957 5,022 Total cost 77,742 73,727 Less accumulated depreciation and amortization (26,246 ) (22,408 ) Net book value of premises, furniture, fixtures, equipment, and leasehold improvements 51,496 51,319 Construction in progress 850 830 Land 43,794 45,531 Premises and equipment, net $ 96,140 $ 97,680 |
Change in Assets Held for Sale | The following table presents the change in assets held for sale for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Beginning balance $ 14,489 $ 9,779 $ 14,748 Transfers in 2,733 9,074 3,372 Transfers out — (425 ) — Proceeds from sales (1,373 ) (4,415 ) (5,373 ) Internally financed sales — — (1,800 ) Net gains (losses) on sales 82 1,103 (217 ) Impairment loss (569 ) (627 ) (951 ) Ending balance $ 15,362 $ 14,489 $ 9,779 |
Goodwill, Core Deposit Intang_2
Goodwill, Core Deposit Intangible and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill and Core Deposit Intangible Assets | The following table summarizes the changes in the Company’s goodwill and core deposit intangible assets for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Goodwill Core Intangible Customer Relationship Intangible Goodwill Core Deposit Intangible Customer Relationship Intangible Goodwill Core Deposit Intangible Customer Relationship Intangible Beginning balance $ 128,177 $ 30,360 $ 3,059 $ 54,562 $ 16,720 $ — $ 51,975 $ 19,776 $ — Additions 20,176 6,220 — 73,615 19,060 3,216 2,587 — — Amortization or accretion — (7,469 ) (268 ) — (5,420 ) (157 ) — (3,056 ) — Ending balance $ 148,353 $ 29,111 $ 2,791 $ 128,177 $ 30,360 $ 3,059 $ 54,562 $ 16,720 $ — Accumulated amortization or accretion N/A $ 26,355 $ 425 N/A $ 18,886 $ 157 N/A $ 13,466 N/A Weighted average remaining amortization or accretion period N/A 6.5 Years 10.4 Years N/A 6.8 Years 11.4 Years N/A 5.6 Years N/A |
Estimated Amortization Expense for Core Deposit Intangible and Other Intangible Assets Recognized | The following table presents the estimated amortization expense for core deposit intangible and other intangible assets recognized at December 31, 2019: Estimated Amortization 2020 $ 7,577 2021 7,012 2022 6,440 2023 4,336 2024 2,286 Thereafter 4,251 Total $ 31,902 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of provision for income taxes | The following were the components of provision for income taxes for the years ended December 31, 2019, 2018, and 2017 2019 2018 2017 Current tax expense: Federal $ 18,976 $ — $ 1,010 State and local 2,199 1,078 1,485 Total current tax expense 21,175 1,078 2,495 Deferred tax expense (benefit): Federal (3,676 ) 11,469 13,554 State and local 2,794 2,460 686 Remeasurement of net deferred tax assets — (760 ) 2,364 Total deferred tax expense (benefit) (882 ) 13,169 16,604 Provision for income taxes $ 20,293 $ 14,247 $ 19,099 |
Schedule of reconciliation between statutory U.S. federal income tax rate and effective tax rate | The following is a reconciliation between the statutory U.S. federal income tax rate of 21% for 2019 and 2018, and 35% for 2017, and the effective tax rate: 2019 2018 2017 Calculated tax benefit at statutory rate 21.0 % 21.0 % 35.0 % Increase (decrease) in income taxes resulting from: State taxes, net of federal income tax 5.6 7.0 6.5 Tax exempt income (0.5 ) (0.5 ) (0.7 ) Share-based compensation (0.1 ) (0.9 ) — Non-deductible expenses 0.3 0.5 0.2 Remeasurement of net deferred tax assets — (1.4 ) 5.8 Total income tax expense (benefit) 26.3 % 25.7 % 46.8 % |
Schedule of components of deferred tax assets and liabilities | The following were the significant components of the deferred tax assets and liabilities as of December 31, 2019 and 2018: 2019 2018 Deferred tax assets: Net operating losses and tax credits $ 26,108 $ 25,851 Interest on non-accrual loans 3,201 3,039 Allowance for loan losses and loan basis 24,027 15,641 Deposits 42 90 Other real estate owned 413 393 Net unrealized holding losses on securities available-for-sale — 4,622 Net unrealized holding losses on cash flow hedges 141 — Accrued expenses 3,291 3,747 Other 2,225 2,075 Total deferred tax assets 59,448 55,458 Deferred tax liabilities: Premises and equipment (1,952 ) (3,752 ) Core deposit intangibles (8,883 ) (9,306 ) Servicing assets (5,422 ) (337 ) Trust preferred securities (2,552 ) (2,710 ) Net unrealized holding gain on securities available-for-sale (804 ) — Net unrealized holding gain on cash flow hedges — (1,839 ) Other (1,520 ) (1,871 ) Total deferred tax liabilities (21,133 ) (19,815 ) Net deferred tax assets $ 38,315 $ 35,643 |
Operating Loss and Credit Carryforwards | 2019 2018 NOL carryforwards available to offset future taxable income: Federal gross NOL carryforwards - begin to expire in 2030 $ 14,357 $ 1,233 Illinois gross NLD carryforwards - begin to expire in 2022 307,705 340,999 |
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 FHLB Advances | The following table summarizes the FHLB advances as of December 31, 2019 and 2018: 2019 2018 Federal Home Loan Bank advances $ 490,000 $ 425,000 Weighted average cost 1.70 % 2.56 % |
Other Borrowings (Tables)
Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Other Borrowings | The following is a summary of the Company’s other borrowings as of December 31, 2019 and 2018: 2019 2018 Securities sold under agreements to repurchase $ 49,638 $ 34,166 Line of credit — — Total $ 49,638 $ 34,166 |
Summary of Short-term Credit Lines Available for Use | The following table presents short-term credit lines available for use, for which the Company did not have an outstanding balance as of December 31, 2019 and 2018: 2019 2018 Federal Reserve Bank of Chicago discount window line $ 547,798 $ 293,613 Available federal funds lines 115,000 55,000 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Schedule of Deposits | The following is a summary of the Company’s deposits as of December 31, 2019 and 2018: 2019 2018 Non-interest-bearing demand deposits $ 1,279,641 $ 1,192,873 Interest-bearing checking accounts 338,185 296,339 Money market demand accounts 881,387 640,401 Other savings 475,839 476,418 Time deposits (below $250,000) 916,723 911,603 Time deposits ($250,000 and above) 255,802 232,282 Total deposits $ 4,147,577 $ 3,749,916 |
Schedule of Maturities of Time Deposits | At December 31, 2019, the scheduled maturities of time deposits were as follows: Scheduled Maturities 2020 $ 1,091,183 2021 60,398 2022 12,324 2023 6,661 2024 1,959 Total $ 1,172,525 |
Junior Subordinated Debentures
Junior Subordinated Debentures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Junior Subordinated Debentures by Issuance | At December 31, 2019 and 2018, the Company’s junior subordinated debentures by issuance were as follows: Name of Trust Aggregate Principal Amount 2019 Aggregate Principal Amount 2018 Stated Maturity Contractual Rate at December 31, 2019 Interest Rate Spread Metropolitan $ 35,000 $ 35,000 March 4.69 % Three-month LIBOR + 2.79% RidgeStone Capital Trust I 1,500 1,500 June 30, 2033 6.38 % Five-year LIBOR + 3.50% First Evanston Bancorp Trust I 10,000 10,000 March 15, 2035 3.67 % Three-month LIBOR + 1.78% Total liability, at par 46,500 46,500 Discount (9,166 ) (9,732 ) Total liability, at carrying value $ 37,334 $ 36,768 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Minimum Annual Rental Commitments for Operating Leases | The minimum annual rental commitments for operating leases subsequent to December 31, 2019, exclusive of taxes and other charges, are summarized as follows: Minimum Commitments 2020 $ 4,560 2021 4,106 2022 2,357 2023 1,358 2024 1,225 Thereafter 2,136 Total $ 15,742 |
Summary of Contract or Notional Amount of Outstanding Loan and Lease Commitments | The following table summarizes the contract or notional amount of outstanding loan and lease commitments at December 31, 2019 and 2018: 2019 2018 Fixed Rate Variable Fixed Variable Commitments to extend credit $ 55,852 $ 908,382 $ 74,099 $ 928,991 Letters of credit 724 65,514 1,982 34,071 Total $ 56,576 $ 973,896 $ 76,081 $ 963,062 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Company's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables summarize the Company’s financial assets and liabilities that were measured at fair value on a recurring basis at December 31, 2019 and 2018: Fair Value Measurements Using 2019 Fair Value Level 1 Level 2 Level 3 Financial assets Securities available-for-sale U.S. Treasury Notes $ 41,830 $ 41,830 $ — $ — U.S. Government agencies 164,950 — 164,950 — Obligations of states, municipalities, and political subdivisions 94,832 — 94,832 — Mortgage-backed securities; residential Agency 490,236 — 490,236 — Non-Agency 109,822 — 109,822 — Mortgage-backed securities; commercial Agency 159,701 — 159,701 — Non-Agency 31,274 — 31,274 — Corporate securities 49,330 — 49,330 — Asset-backed securities 44,317 — 44,317 — Equity and other securities, at fair value Mutual funds 2,952 2,952 — — Equity securities 5,079 — 4,379 700 Servicing assets 19,471 — — 19,471 Derivative assets 7,960 — 7,960 — Financial liabilities Derivative liabilities 8,519 — 8,519 — Fair Value Measurements Using 2018 Fair Value Level 1 Level 2 Level 3 Financial assets Securities available-for-sale U.S. Treasury Notes $ 52,667 $ 52,667 $ — $ — U.S. Government agencies 186,498 — 186,498 — Obligations of states, municipalities, and political subdivisions 60,233 — 60,233 195 Mortgage-backed securities; residential Agency 272,963 — 272,963 — Non-Agency 83,621 — 83,621 — Mortgage-backed securities; commercial Agency 90,434 — 90,434 — Non-Agency 30,458 — 30,458 — Corporate securities 34,173 — 34,173 — Other securities 6,609 2,844 3,074 691 Servicing assets 19,693 — — 19,693 Derivative assets 10,740 — 10,740 — Financial liabilities Derivative liabilities 4,243 — 4,243 — |
Summary of Financial Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | The following table presents additional information about financial assets measured at fair value on recurring basis for which the Company used significant unobservable inputs (Level 3): Years Ended December 31, 2019 2018 2019 2018 Investment Securities Servicing Assets Balance, beginning of period $ 886 $ 1,052 $ 19,693 $ 21,400 Acquired assets at fair value — 314 — — Additions, net — — 6,417 7,562 Maturities (195 ) (494 ) — — Amortization — 5 — — Change in unrealized gain — 9 — — Change in fair value 9 — (6,639 ) (9,269 ) Balance, end of period $ 700 $ 886 $ 19,471 $ 19,693 |
Summary of Unobservable Inputs Used in the Fair Value Measurements on Recurring Basis | The following table presents additional information about the unobservable inputs used in the fair value measurements on recurring basis that were categorized within Level 3 of the fair value hierarchy as of December 31, 2019: Financial Instruments Valuation Technique Unobservable Inputs Range of Inputs Weighted Average Input Impact to Valuation from an Increased or Higher Input Value Single issuer trust preferred Discounted cash flow Discount rate 5.1%—6.4% 5.6 % Decrease Servicing assets Discounted cash flow Prepayment speeds 2.9%—24.9% 14.7 % Decrease Discount rate 5.6%—32.1% 12.5 % Decrease Expected weighted average loan life 0.1—8.9 years 4.3 years Increase |
Summary of Company's Assets Measured at Fair Value on a Non-Recurring Basis | The following tables summarize the Company’s assets that were measured at fair value on a non-recurring basis, excluding acquired impaired loans, as of December 31, 2019 and 2018: Fair Value Measurements Using 2019 Fair Value Level 1 Level 2 Level 3 Non-recurring Impaired loans (excluding acquired impaired loans) Commercial real estate $ 23,782 $ — $ — $ 23,782 Residential real estate 2,274 — — 2,274 Construction, land development, and other land 2,644 — — 2,644 Commercial and industrial 29,351 — — 29,351 Assets held for sale 15,362 — — 15,362 Other real estate owned 9,896 — — 9,896 Fair Value Measurements Using 2018 Fair Value Level 1 Level 2 Level 3 Non-recurring Impaired loans (excluding acquired impaired loans) Commercial real estate $ 9,792 $ — $ — $ 9,792 Residential real estate 2,076 — — 2,076 Commercial and industrial 17,397 — — 17,397 Assets held for sale 14,489 — — 14,489 Other real estate owned 5,314 — — 5,314 |
Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments not carried at fair value and levels within the fair value hierarchy are as follows: Fair Value 2019 2018 Hierarchy Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Financial assets Cash and due from banks 1 $ 48,228 $ 48,228 $ 30,190 $ 30,190 Interest bearing deposits with other banks 2 32,509 32,509 91,670 91,670 Securities held-to-maturity 2 4,412 4,498 99,266 97,739 Other restricted stock 2 22,127 22,127 19,202 19,202 Loans held for sale 3 11,732 12,935 19,827 21,654 Loans and lease receivables, net (less impaired loans at fair value) 3 3,695,674 3,661,724 3,447,160 3,407,652 Accrued interest receivable 3 13,283 13,283 10,863 10,863 Financial liabilities Non-interest-bearing deposits 2 1,279,641 1,279,641 1,192,873 1,192,873 Interest-bearing deposits 2 2,867,936 2,873,380 2,557,043 2,554,329 Accrued interest payable 2 3,677 3,677 3,484 3,484 Line of credit 2 — — — — Federal Home Loan Bank advances 2 490,000 490,000 425,000 425,000 Securities sold under repurchase agreement 2 49,638 49,638 34,166 34,166 Junior subordinated debentures 3 37,334 42,881 36,768 42,351 (1) In accordance with the prospective adoption of ASU 2016-01, the fair value of loans and lease receivables, net (less impaired loans at fair value) as of December 31, 2019 was measured using an exit price notion. The fair value as of December 31, 2018 was measured using an entry price notion. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock Compensation Expense | The following table summarizes stock option compensation expense for the years ended December 31, 2019, 2018, and 2017: Years Ended December 31, 2019 2018 2017 Total share-based compensation (benefit) - stock options $ (106 ) $ 458 $ 1,294 Income tax benefit (expense) (29 ) 127 521 Unrecognized compensation expense - stock options 7 146 729 Weighted-average amortization period remaining 0.3 years 1.1 years 1.2 years |
Restricted Shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock Compensation Expense | The following table summarizes restricted stock compensation expense for the years ended: Years Ended December 31, 2019 2018 2017 Total share-based compensation - restricted stock $ 1,965 $ 958 $ 203 Income tax benefit 547 267 83 Unrecognized compensation expense - restricted stock 4,616 3,167 1,227 Weighted-average amortization period remaining 2.6 years 2.9 years 2.8 years |
Omnibus Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Changes in Restricted Shares | The following table discloses the changes in restricted shares for the year ended December 31, 2019: Omnibus Plan Number of Shares Weighted Average Grant Date Fair Value Beginning balance, January 1, 2019 196,480 $ 21.66 Granted 210,622 18.68 Vested (48,491 ) 21.62 Forfeited (29,958 ) 19.73 Ending balance outstanding at December 31, 2019 328,653 $ 19.94 |
BYB Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Activity in shares Subjected to Options and Weighted Average Exercise Prices | The following table discloses the activity in shares subject to options and the weighted average exercise prices, in actual dollars, for the year ended December 31, 2019: BYB Plan Number of Shares Weighted Average Exercise Price Intrinsic Value Weighted Average Remaining Contractual Term (in Years) Beginning balance, January 1, 2019 1,598,872 $ 11.84 $ 7,713 6.6 Granted — Expired — Exercised (127,997 ) $ 14.71 $ 521 Forfeited (60,800 ) $ 16.25 Ending balance outstanding at December 31, 2019 1,410,075 $ 11.38 $ 11,542 5.4 Exercisable at December 31, 2019 1,390,075 $ 11.31 $ 11,475 5.4 |
FEB Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Activity in shares Subjected to Options and Weighted Average Exercise Prices | The following table discloses the activity in shares subject to options under the FEB Plan and the weighted average exercise prices, in actual dollars, for the year ended December 31, 2019: FEB Plan Number of Shares Weighted Average Exercise Price Intrinsic Value Weighted Average Remaining Contractual Term (in Years) Beginning balance, January 1, 2019 624,383 $ 11.31 $ 3,339 5.2 Granted — Expired — Exercised (113,214 ) 11.17 $ 909 Forfeited — Ending balance outstanding at December 31, 2019 511,169 $ 11.35 $ 4,204 4.4 Exercisable at December 31, 2019 511,169 $ 11.35 $ 4,204 4.4 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Summary of Bank's Actual Capital Amounts and Ratios | The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2019 and 2018 are also presented. Actual Minimum Capital Required Required to be Considered Well Capitalized 2019 Amount Ratio Amount Ratio Amount Ratio Total capital to risk weighted assets: Company $ 627,573 14.43 % $ 347,835 8.00 % N/A N/A Bank 602,684 13.87 % 347,564 8.00 % 434,454 10.00 % Tier 1 capital to risk weighted assets: Company $ 594,477 13.67 % $ 260,876 6.00 % N/A N/A Bank 569,588 13.11 % 260,673 6.00 % 347,564 8.00 % Common Equity Tier 1 (CET1) to risk weighted assets: Company $ 537,539 12.36 % $ 195,657 4.50 % N/A N/A Bank 569,588 13.11 % 195,504 4.50 % 282,395 6.50 % Tier 1 capital to average assets: Company $ 594,477 11.39 % $ 208,771 4.00 % N/A N/A Bank 569,588 10.92 % 208,647 4.00 % 260,809 5.00 % Actual Minimum Capital Required Required to be Considered Well Capitalized 2018 Amount Ratio Amount Ratio Amount Ratio Total capital to risk weighted assets: Company $ 551,079 13.99 % $ 315,093 8.00 % N/A N/A Bank 528,329 13.40 % 315,455 8.00 % 394,318 10.00 % Tier 1 capital to risk weighted assets: Company $ 523,808 13.30 % $ 236,320 6.00 % N/A N/A Bank 501,058 12.71 % 236,591 6.00 % 315,455 8.00 % Common Equity Tier 1 (CET1) to risk weighted assets: Company $ 466,870 11.85 % $ 177,240 4.50 % N/A N/A Bank 501,058 12.71 % 177,443 4.50 % 256,307 6.50 % Tier 1 capital to average assets: Company $ 523,808 11.05 % $ 189,587 4.00 % N/A N/A Bank 501,058 10.56 % 189,797 4.00 % 237,246 5.00 % |
Derivative Instruments and He_2
Derivative Instruments and Hedge Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Financial Instruments and Classification on Consolidated Statements of Financial Condition | The following tables present the fair value of the Company’s derivative financial instruments and classification on the Consolidated Statements of Financial Condition as of December 31, 2019 and 2018: 2019 2018 Fair Value Fair Value Notional Amount Other Assets Other Liabilities Notional Amount Other Assets Other Liabilities Derivatives designated as hedging instruments Interest rate swaps designated as cash flow hedges $ — $ — $ — $ 250,000 $ 6,699 $ — Derivatives not designated as hedging instruments Other interest rate derivatives 332,056 7,960 8,507 294,545 4,041 4,237 Other credit derivatives 9,302 — 12 4,424 — 6 Total derivatives $ 341,358 $ 7,960 $ 8,519 $ 548,969 $ 10,740 $ 4,243 |
Summary of Net Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) and Consolidated Statements of Operations Relating to Cash Flow Derivative Instruments | The following table reflects the net gains (losses) recorded in accumulated other comprehensive income (loss) and the Consolidated Statements of Operations relating to the cash flow derivative instruments for the years ended December 31, 2019 and 2018 2019 2018 Amount of Loss Recognized in OCI Amount of Gain Reclassified from OCI to Income as a Decrease to Interest Expense Amount of Gain (Loss) Recognized in Other Non-Interest Income Amount of Gain Recognized in OCI Amount of Gain Reclassified from OCI to Income as a Decrease to Interest Expense Amount of Gain (Loss) Recognized in Other Non-Interest Income Interest rate swaps $ (5,483 ) $ 1,626 $ — $ 2,960 $ 1,348 $ — |
Summary of Other Interest Rate Derivatives | The following table reflects other interest rate derivatives as of December 31, 2019: Notional amounts $ 332,056 Derivative assets fair value 7,960 Derivative liabilities fair value 8,507 Weighted average pay rates 4.63 % Weighted average receive rates 3.94 % Weighted average maturity 6.5 years |
Summary of Amounts Included in Non-Interest Income in Consolidated Statements of Operations Relating to Derivative Instruments not Designated in Hedging Relationship | The following table reflects amounts included in non-interest income in the Consolidated Statements of Operations relating to derivative instruments that are not designated in a hedging relationship for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Other interest rate derivatives $ (351 ) $ (192 ) $ (44 ) Other credit derivatives 67 54 — Total $ (284 ) $ (138 ) $ (44 ) |
Summary of Company's Interest Rate Derivative and Offsetting Positions | The Company records interest rate derivatives subject to master netting agreements at their gross value and does not offset derivative asset and liabilities on the Consolidated Statements of Financial Condition. The table below summarizes the Company’s interest rate derivatives and offsetting positions as of December 31, 2019 and 2018 2019 2018 Derivative Assets Fair Value Derivative Liabilities Fair Value Derivative Assets Fair Value Derivative Liabilities Fair Value Gross amounts recognized $ 7,960 $ 8,519 $ 10,740 $ 4,243 Less: Amounts offset in the Consolidated Statements of Financial Condition — — — — Net amount presented in the Consolidated Statements of Financial Condition $ 7,960 $ 8,519 $ 10,740 $ 4,243 Gross amounts not offset in the Consolidated Statements of Financial Condition Offsetting derivative positions (1 ) (1 ) (2,823 ) (2,823 ) Collateral posted (7,959 ) (8,518 ) (7,917 ) (1,317 ) Net credit exposure $ — $ — $ — $ 103 |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule of Statements of Condensed Financial Statements | The following represents the condensed financial statements of Byline Bancorp, Inc., the Parent Company: Statements of Financial Condition Parent Company Only As of December 31, 2019 2018 ASSETS Cash $ 13,370 $ 18,242 Investment in banking subsidiary 769,797 667,236 Other assets 5,824 3,067 Total assets $ 788,991 $ 688,545 LIABILITIES AND STOCKHOLDERS’ EQUITY Line of credit $ — $ — Junior subordinated debentures issued to capital trusts, net 37,334 36,768 Accrued expenses and other liabilities 1,542 1,105 Stockholders' equity 750,115 650,672 Total liabilities and stockholders' equity $ 788,991 $ 688,545 Note 23—Parent Company Only Condensed Financial Statements (continued) Statements of Operations Parent Company Only Years ended December 31, 2019 2018 2017 INCOME Dividends from subsidiary $ 13,500 $ 2,900 $ 2,800 Other noninterest income — — 9 Total income 13,500 2,900 2,809 EXPENSES Interest expense 2,984 2,716 2,782 Other noninterest expense 1,768 3,214 1,804 Total expenses 4,752 5,930 4,586 Income (loss) before provision for income taxes and equity in undistributed income of subsidiary 8,748 (3,030 ) (1,777 ) Benefit for income taxes (1,323 ) (1,549 ) (1,166 ) Income (loss) before equity in undistributed income of subsidiary 10,071 (1,481 ) (611 ) Equity in undistributed income of subsidiary 46,931 42,674 22,306 Net income $ 57,002 $ 41,193 $ 21,695 Statements of Cash Flows Parent Company Only Years ended December 31, 2019 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 57,002 $ 41,193 $ 21,695 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed income of subsidiary (46,931 ) (42,674 ) (22,306 ) Stock-based compensation expense 1,673 1,514 1,497 Accretion of junior subordinated debentures discount 566 624 721 Changes in other assets and other liabilities (7,916 ) (3,291 ) (2,893 ) Net cash provided by (used in) operating activities 4,394 (2,634 ) (1,286 ) CASH FLOWS FROM INVESTING ACTIVITIES Net cash paid in acquisition of business (6,554 ) (20,510 ) — Net cash used in investing activities (6,554 ) (20,510 ) — CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from revolving line of credit 5,680 — — Repayments of revolving line of credit (11,335 ) — (20,650 ) Dividends paid on preferred stock (783 ) (783 ) (11,277 ) Cash paid in lieu of fractional shares — — (2 ) Proceeds from issuance of common stock, net 3,726 2,543 76,829 Proceeds from issuance of preferred stock — — 1,050 Repurchase of preferred stock — — (15,003 ) Net cash (used in) provided by financing activities (2,712 ) 1,760 30,947 NET CHANGE IN CASH AND CASH EQUIVALENTS (4,872 ) (21,384 ) 29,661 CASH AND CASH EQUIVALENTS, beginning of period 18,242 39,626 9,965 CASH AND CASH EQUIVALENTS, end of period $ 13,370 $ 18,242 $ 39,626 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Earnings per Share | Years ended December 31, 2019 2018 2017 Net income $ 57,002 $ 41,193 $ 21,695 Less: Dividends on preferred shares 783 783 11,277 Net income available to common stockholders $ 56,219 $ 40,410 $ 10,418 Weighted-average common stock outstanding: Weighted-average common stock outstanding (basic) 37,290,486 33,292,619 26,963,517 Incremental shares 695,977 887,135 583,797 Weighted-average common stock outstanding (dilutive) 37,986,463 34,179,754 27,547,314 Basic earnings per common share $ 1.51 $ 1.21 $ 0.39 Diluted earnings per common share $ 1.48 $ 1.18 $ 0.38 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of Preferred and Common Stock | A summary of the Company’s preferred and common stock at December 31, 2019 and 2018 is as follows: 2019 2018 Series B 7.5% fixed to floating non-cumulative perpetual preferred stock Par value $ 0.01 $ 0.01 Shares authorized 50,000 50,000 Shares issued 10,438 10,438 Shares outstanding 10,438 10,438 Common stock, voting Par value $ 0.01 $ 0.01 Shares authorized 150,000,000 150,000,000 Shares issued 38,256,500 36,343,239 Shares outstanding 38,256,500 36,343,239 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Data (unaudited) | For the year ended December 31, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $ 61,110 $ 66,760 $ 71,029 $ 65,915 Interest expense 11,025 12,312 13,191 12,001 Net interest income 50,085 54,448 57,838 53,914 Provision for loan and lease losses 3,999 6,391 5,931 4,387 Net interest income after provision for loan and lease losses 46,086 48,057 51,907 49,527 Non-interest income 11,988 14,183 14,806 14,516 Non-interest expense 40,679 43,954 45,448 43,694 Income before provision for income taxes 17,395 18,286 21,265 20,349 Provision for income taxes 4,798 5,075 5,923 4,497 Net income 12,597 13,211 15,342 15,852 Dividends on preferred shares 196 195 196 196 Income available to common stockholders $ 12,401 $ 13,016 $ 15,146 $ 15,656 Basic earnings per common share $ 0.34 $ 0.35 $ 0.40 $ 0.41 Diluted earnings per common share $ 0.34 $ 0.34 $ 0.39 $ 0.41 For the year ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $ 38,142 $ 44,841 $ 61,073 $ 62,895 Interest expense 4,447 5,785 8,480 9,634 Net interest income 33,695 39,056 52,593 53,261 Provision for loan and lease losses 5,115 3,956 5,842 3,882 Net interest income after provision for loan and lease losses 28,580 35,100 46,751 49,379 Non-interest income 11,123 14,211 10,902 14,290 Non-interest expense 31,614 45,479 37,715 40,088 Income before provision for income taxes 8,089 3,832 19,938 23,581 Provision for income taxes 1,321 1,064 5,402 6,460 Net income 6,768 2,768 14,536 17,121 Dividends on preferred shares 193 198 196 196 Income available to common stockholders $ 6,575 $ 2,570 $ 14,340 $ 16,925 Basic earnings per common share $ 0.22 $ 0.08 $ 0.40 $ 0.47 Diluted earnings per common share $ 0.22 $ 0.08 $ 0.39 $ 0.46 |
Consolidated Statements of Ch_3
Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss) | The following table summarized the change in accumulated other comprehensive income (loss) for the years ended December 31, 2019, 2018, and 2017: (dollars in thousands) Unrealized Gains (Losses) on Cash Flow Hedges Unrealized (Losses) on Available-for -Sale Securities Total Accumulated Other Comprehensive Income (Loss) Balance, January 1, 2017 $ 2,233 $ (9,501 ) $ (7,268 ) Other comprehensive income, net of tax 680 1,501 2,181 Balance, December 31, 2017 2,913 (8,000 ) (5,087 ) Reclassification of certain income tax effects from accumulated other comprehensive income 687 (1,450 ) (763 ) Other comprehensive income (loss), net of tax 1,163 (4,811 ) (3,648 ) Balance, December 31, 2018 4,763 (14,261 ) (9,498 ) Cumulative-effect adjustment (ASU 2016-01) — (1,440 ) (1,440 ) Other comprehensive income (loss), net of tax (5,129 ) 15,367 10,238 Balance, December 31, 2019 $ (366 ) $ (334 ) $ (700 ) |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies - Nature of business (Details) | Jun. 14, 2017USD ($)$ / shares | Dec. 31, 2019item |
Nature of business | ||
Merger transaction, the number of shares into which each share of common stock issued and outstanding prior to merger was converted | 0.20 | |
Merger transaction, cash paid to stockholders for remaining fractional shares | $ | $ 2,000 | |
Offering price per share | $ / shares | $ 19 | |
Chicago metropolitan area | ||
Nature of business | ||
Number of bank branches | 56 | |
Wisconsin | ||
Nature of business | ||
Number of bank branches | 1 |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies - Cash and cash equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Business Description And Accounting Policies [Abstract] | ||
Reserve requirement | $ 51.8 | $ 44.8 |
Business and Summary of Signi_5
Business and Summary of Significant Accounting Policies - Premises and equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Premises and equipment | |
Estimated useful lives (in years) | 3 years |
Maximum | |
Premises and equipment | |
Estimated useful lives (in years) | 39 years |
Business and Summary of Signi_6
Business and Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Description And Accounting Policies [Abstract] | |||
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 |
Business and Summary of Signi_7
Business and Summary of Significant Accounting Policies - Other intangible assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Minimum | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangibles amortization period (in years) | 9 years | ||
Maximum | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangibles amortization period (in years) | 10 years | ||
Core Deposits | |||
Finite Lived Intangible Assets [Line Items] | |||
Impairment on intangible assets | $ 0 | $ 0 | $ 0 |
Business and Summary of Signi_8
Business and Summary of Significant Accounting Policies - Customer Relationship Intangibles (Details) - Customer Relationships - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | ||
Intangibles amortization period (in years) | 12 years | |
Impairment on intangible assets | $ 0 | $ 0 |
Business and Summary of Signi_9
Business and Summary of Significant Accounting Policies - Income taxes (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Business Description And Accounting Policies [Abstract] | ||
Uncertain tax positions | $ 0 | $ 0 |
Business and Summary of Sign_10
Business and Summary of Significant Accounting Policies - Segment reporting (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Business Description And Accounting Policies [Abstract] | |
Number of reportable segment | 1 |
Accounting Pronouncements Rec_3
Accounting Pronouncements Recently Adopted or Issued - Additional Information (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Reclassification from other comprehensive income to retained earnings | $ (1,440) | |||
Equity and other securities, at fair value | 8,031 | |||
ASU 2014-09 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Change in ATM and interchange fees | $ 1,500 | $ 1,100 | $ 1,000 | |
ASU 2016-01 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Reclassification from other comprehensive income to retained earnings | $ 1,400 | |||
Equity and other securities, at fair value | $ 6,600 | |||
ASU 2017-12 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Reclassification of securities held-to-maturity to securities available-for-sale | $ 94,800 |
Accounting Pronouncements Rec_4
Accounting Pronouncements Recently Adopted or Issued - Impact of Adopting the New Revenue Standard on Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-interest income: | |||
ATM and interchange fees | $ 3,785 | $ 4,313 | $ 4,812 |
Non-interest expense: | |||
Other non-interest expense | 11,034 | 9,501 | 7,824 |
Balance without Adoption of ASC 606 | ASU 2014-09 | |||
Non-interest income: | |||
ATM and interchange fees | 5,306 | 5,426 | 5,840 |
Non-interest expense: | |||
Other non-interest expense | 12,555 | 10,614 | 8,852 |
Effect of Change | ASU 2014-09 | |||
Non-interest income: | |||
ATM and interchange fees | (1,521) | (1,113) | (1,028) |
Non-interest expense: | |||
Other non-interest expense | $ (1,521) | $ (1,113) | $ (1,028) |
Acquisition of a Business - Add
Acquisition of a Business - Additional Information (Details) - USD ($) | May 15, 2019 | Apr. 30, 2019 | May 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 148,353,000 | $ 128,177,000 | $ 54,562,000 | $ 51,975,000 | |||
Oak Park River Forest Bankshares, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition date of agreement | Apr. 30, 2019 | ||||||
Right to receive common stock upon conversion | 7.9321 | ||||||
Consideration paid in cash | $ 4,200,000 | $ 6,163,000 | |||||
Common stock outstanding value per share | $ 33.375 | ||||||
Common stock issued price per share | $ 20.02 | ||||||
Issuance of common shares | 1,464,558 | ||||||
Value of common stock consideration | $ 29,300,000 | ||||||
Options to acquire common stock shares | 35,870 | ||||||
Option to acquire common stock value | $ 4,200,000 | ||||||
Total merger consideration | 35,483,000 | ||||||
Stock issuance costs | 585,000 | ||||||
Goodwill | $ 20,176,000 | ||||||
Fair value estimate of loans | $ 3,700,000 | ||||||
Fair value estimate of other assets | 25,000 | ||||||
Increase in deferred tax asset | 1,000,000 | ||||||
Increase in goodwill | 2,700,000 | ||||||
Oak Park River Forest Bankshares, Inc. | Non-interest Expense | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition advisory expenses | 2,300,000 | ||||||
Core system conversion expenses | $ 2,000,000 | 335,000 | |||||
First Evanston Bancorp, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition date of agreement | May 31, 2018 | ||||||
Right to receive common stock upon conversion | 3.994 | ||||||
Consideration paid in cash | $ 27,004,000 | ||||||
Common stock outstanding value per share | $ 16.136 | ||||||
Common stock issued price per share | $ 21.62 | ||||||
Issuance of common shares | 6,682,850 | ||||||
Value of common stock consideration | $ 144,500,000 | ||||||
Options to acquire common stock shares | 144,090 | ||||||
Option to acquire common stock value | $ 7,600,000 | ||||||
Total merger consideration | 179,131,000 | ||||||
Stock issuance costs | 852,000 | ||||||
Goodwill | $ 73,615,000 | ||||||
Options to acquire conversion of common stock shares | 680,787 | ||||||
First Evanston Bancorp, Inc. | Non-interest Expense | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition advisory expenses | 1,700,000 | $ 1,300,000 | |||||
Core system conversion expenses | $ 2,000,000 | $ 9,800,000 |
Acquisition of a Business - Sum
Acquisition of a Business - Summary of Estimated Fair Values of Assets and Liabilities Assumed as of Acquisition Date (Details) - USD ($) $ in Thousands | May 15, 2019 | Apr. 30, 2019 | May 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Consideration paid | |||||||
Goodwill | $ 148,353 | $ 128,177 | $ 54,562 | $ 51,975 | |||
Oak Park River Forest Bankshares, Inc. | |||||||
Assets | |||||||
Cash and cash equivalents | $ 10,469 | ||||||
Securities available-for-sale | 30,343 | ||||||
Restricted stock | 414 | ||||||
Loans | 257,423 | ||||||
Premises and equipment | 3,488 | ||||||
Other real estate owned | 2,201 | ||||||
Other intangible assets | 6,220 | ||||||
Bank-owned life insurance | 3,485 | ||||||
Deferred tax assets, net | 5,925 | ||||||
Other assets | 1,231 | ||||||
Total assets acquired | 321,199 | ||||||
Liabilities | |||||||
Deposits | 290,171 | ||||||
Line of credit | 5,655 | ||||||
Federal Home Loan Bank advances | 5,300 | ||||||
Accrued expenses and other liabilities | 4,766 | ||||||
Total liabilities assumed | 305,892 | ||||||
Net assets acquired | 15,307 | ||||||
Consideration paid | |||||||
Common stock (2019 - 1,464,558 shares issued at $20.02 per share, 2018 - 6,682,850 shares issued at $21.62 per share) | 29,320 | ||||||
Consideration paid in cash | $ 4,200 | 6,163 | |||||
Total consideration paid | 35,483 | ||||||
Goodwill | $ 20,176 | ||||||
First Evanston Bancorp, Inc. | |||||||
Assets | |||||||
Cash and cash equivalents | $ 47,378 | ||||||
Securities available-for-sale | 128,063 | ||||||
Restricted stock | 1,360 | ||||||
Loans | 916,011 | ||||||
Premises and equipment | 15,890 | ||||||
Other intangible assets | 22,276 | ||||||
Deferred tax assets, net | 2,302 | ||||||
Other assets | 8,845 | ||||||
Total assets acquired | 1,142,125 | ||||||
Liabilities | |||||||
Deposits | 1,022,268 | ||||||
Junior subordinated debentures | 8,497 | ||||||
Accrued expenses and other liabilities | 5,844 | ||||||
Total liabilities assumed | 1,036,609 | ||||||
Net assets acquired | 105,516 | ||||||
Consideration paid | |||||||
Common stock (2019 - 1,464,558 shares issued at $20.02 per share, 2018 - 6,682,850 shares issued at $21.62 per share) | 144,483 | ||||||
Outstanding stock options converted to Byline stock options | 7,644 | ||||||
Consideration paid in cash | 27,004 | ||||||
Total consideration paid | 179,131 | ||||||
Goodwill | $ 73,615 |
Acquisition of a Business - S_2
Acquisition of a Business - Summary of Estimated Fair Values of Assets and Liabilities Assumed as of Acquisition Date (Parenthetical) (Details) - $ / shares | Apr. 30, 2019 | May 31, 2018 |
Oak Park River Forest Bankshares, Inc. | ||
Business Acquisition [Line Items] | ||
Stock issued (in shares) | 1,464,558 | |
Stock issued (in dollars per share) | $ 20.02 | |
First Evanston Bancorp, Inc. | ||
Business Acquisition [Line Items] | ||
Stock issued (in shares) | 6,682,850 | |
Stock issued (in dollars per share) | $ 21.62 |
Acquisition of a Business - S_3
Acquisition of a Business - Summary of Acquired Non-Impaired Loans as of Acquisition Date (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | May 31, 2018 | |
Oak Park River Forest Bankshares, Inc. | |||
Business Acquisition [Line Items] | |||
Fair value | $ 204,496 | ||
Gross contractual amounts receivable | 254,755 | ||
Estimate of contractual cash flows not expected to be collected | [1] | 12,987 | |
Estimate of contractual cash flows expected to be collected | $ 241,768 | ||
First Evanston Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Fair value | $ 890,986 | ||
Gross contractual amounts receivable | 1,057,374 | ||
Estimate of contractual cash flows not expected to be collected | [1] | 36,544 | |
Estimate of contractual cash flows expected to be collected | $ 1,020,830 | ||
[1] | Includes interest payments not expected to be collected due to loan prepayments as well as principal and interest payments not expected to be collected due to customer default. |
Acquisition of a Business - S_4
Acquisition of a Business - Summary of Pro Forma Information for Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Combinations [Abstract] | ||
Total revenues (net interest income and non-interest income) | $ 272,081 | $ 274,108 |
Net income | $ 57,797 | $ 61,356 |
Earnings per share—basic | $ 1.47 | $ 1.61 |
Earnings per share—diluted | $ 1.45 | $ 1.57 |
Securities - Summary of Amortiz
Securities - Summary of Amortized Cost and Fair Values of Securities Available-for-sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | $ 1,183,404 | $ 834,254 |
Available-for-sale Securities, Gross Unrealized Gains | 7,593 | 3,130 |
Available-for-sale Securities, Gross Unrealized Losses | (4,705) | (19,728) |
Available-for-sale Securities, Fair Value | 1,186,292 | 817,656 |
U.S. Treasury Notes | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 41,403 | 52,775 |
Available-for-sale Securities, Gross Unrealized Gains | 427 | 81 |
Available-for-sale Securities, Gross Unrealized Losses | (189) | |
Available-for-sale Securities, Fair Value | 41,830 | 52,667 |
U.S. Government Agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 165,162 | 187,427 |
Available-for-sale Securities, Gross Unrealized Gains | 542 | 367 |
Available-for-sale Securities, Gross Unrealized Losses | (754) | (1,296) |
Available-for-sale Securities, Fair Value | 164,950 | 186,498 |
Obligations of States, Municipalities, and Political Subdivisions | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 92,806 | 60,686 |
Available-for-sale Securities, Gross Unrealized Gains | 2,075 | 133 |
Available-for-sale Securities, Gross Unrealized Losses | (49) | (586) |
Available-for-sale Securities, Fair Value | 94,832 | 60,233 |
Agency, Residential Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 490,427 | 284,038 |
Available-for-sale Securities, Gross Unrealized Gains | 2,163 | 101 |
Available-for-sale Securities, Gross Unrealized Losses | (2,354) | (11,176) |
Available-for-sale Securities, Fair Value | 490,236 | 272,963 |
Non-Agency, Residential Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 109,501 | 84,998 |
Available-for-sale Securities, Gross Unrealized Gains | 593 | 199 |
Available-for-sale Securities, Gross Unrealized Losses | (272) | (1,576) |
Available-for-sale Securities, Fair Value | 109,822 | 83,621 |
Agency, Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 159,650 | 93,543 |
Available-for-sale Securities, Gross Unrealized Gains | 1,092 | 55 |
Available-for-sale Securities, Gross Unrealized Losses | (1,041) | (3,164) |
Available-for-sale Securities, Fair Value | 159,701 | 90,434 |
Non-Agency, Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 31,144 | 31,458 |
Available-for-sale Securities, Gross Unrealized Gains | 130 | |
Available-for-sale Securities, Gross Unrealized Losses | (1,000) | |
Available-for-sale Securities, Fair Value | 31,274 | 30,458 |
Corporate Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 48,796 | 34,716 |
Available-for-sale Securities, Gross Unrealized Gains | 571 | 67 |
Available-for-sale Securities, Gross Unrealized Losses | (37) | (610) |
Available-for-sale Securities, Fair Value | 49,330 | 34,173 |
Asset-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 44,515 | |
Available-for-sale Securities, Gross Unrealized Losses | (198) | |
Available-for-sale Securities, Fair Value | $ 44,317 | |
Other Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 4,613 | |
Available-for-sale Securities, Gross Unrealized Gains | 2,127 | |
Available-for-sale Securities, Gross Unrealized Losses | (131) | |
Available-for-sale Securities, Fair Value | $ 6,609 |
Securities - Summary of Amort_2
Securities - Summary of Amortized Cost and Fair Values of Securities Held-to-maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | $ 4,412 | $ 99,266 |
Held-to-maturity Securities, Gross Unrealized Gains | 86 | 133 |
Held-to-maturity Securities, Gross Unrealized Losses | (1,660) | |
Held-to-maturity Securities, Fair Value | 4,498 | 97,739 |
Obligations of States, Municipalities, and Political Subdivisions | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 4,412 | 23,835 |
Held-to-maturity Securities, Gross Unrealized Gains | 86 | 40 |
Held-to-maturity Securities, Gross Unrealized Losses | (210) | |
Held-to-maturity Securities, Fair Value | $ 4,498 | 23,665 |
Agency, Residential Mortgage-Backed Securities | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 40,082 | |
Held-to-maturity Securities, Gross Unrealized Gains | 93 | |
Held-to-maturity Securities, Gross Unrealized Losses | (531) | |
Held-to-maturity Securities, Fair Value | 39,644 | |
Non-Agency, Residential Mortgage-Backed Securities | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-to-maturity Securities, Amortized Cost | 35,349 | |
Held-to-maturity Securities, Gross Unrealized Losses | (919) | |
Held-to-maturity Securities, Fair Value | $ 34,430 |
Securities - Additional Informa
Securities - Additional Information (Details) | Jan. 01, 2019USD ($) | Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Schedule Of Investments [Line Items] | |||
Trading securities | $ 0 | $ 0 | |
Reclassification from other comprehensive income to retained earnings | (1,440,000) | ||
Equity and other securities, at fair value | 8,031,000 | ||
Carrying amount of securities pledged as collateral | $ 301,100,000 | $ 244,700,000 | |
Minimum | |||
Schedule Of Investments [Line Items] | |||
Percentage of shareholders equity for which securities holdings exceeds for no issuer other than U.S. Government and agencies | 10.00% | 10.00% | |
Federal Home Loan Bank Advances | |||
Schedule Of Investments [Line Items] | |||
Carrying amount of securities pledged as collateral | $ 0 | $ 0 | |
Public Fund Deposits | |||
Schedule Of Investments [Line Items] | |||
Carrying amount of securities pledged as collateral | 240,400,000 | 197,800,000 | |
Customer Repurchase Agreements | |||
Schedule Of Investments [Line Items] | |||
Carrying amount of securities pledged as collateral | $ 55,700,000 | $ 46,900,000 | |
Available-for-sale Securities | |||
Schedule Of Investments [Line Items] | |||
Investment securities with unrealized losses | Security | 99 | 179 | |
Held-to-maturity Securities | |||
Schedule Of Investments [Line Items] | |||
Investment securities with unrealized losses | Security | 0 | 46 | |
ASU 2016-01 | |||
Schedule Of Investments [Line Items] | |||
Reclassification from other comprehensive income to retained earnings | $ 1,400,000 | ||
Equity and other securities, at fair value | $ 6,600,000 | ||
ASU 2017-12 | |||
Schedule Of Investments [Line Items] | |||
Reclassification of securities held-to-maturity to securities available-for-sale | $ 94,800,000 |
Securities - Summary of Gross U
Securities - Summary of Gross Unrealized Losses and Fair Values, Aggregated by Investment Category and Length of Individual Securities Continuous Unrealized Loss Position Available-for-sale (Details) $ in Thousands | Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security | 99 | 179 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 343,722 | $ 191,761 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (2,377) | (2,441) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 257,869 | 427,243 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (2,328) | (17,287) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 601,591 | 619,004 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses | $ (4,705) | $ (19,728) |
U.S. Government Agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security | 8 | 25 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 49,318 | $ 43,487 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (662) | (80) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 20,283 | 50,101 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (92) | (1,216) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 69,601 | 93,588 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses | $ (754) | $ (1,296) |
Obligations of States, Municipalities, and Political Subdivisions | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security | 7 | 56 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 13,309 | $ 13,926 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (45) | (97) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,419 | 18,563 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (4) | (489) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 14,728 | 32,489 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses | $ (49) | $ (586) |
Agency, Residential Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security | 50 | 42 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 132,703 | $ 4,288 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (666) | (45) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 193,363 | 254,121 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (1,688) | (11,131) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 326,066 | 258,409 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses | $ (2,354) | $ (11,176) |
Non-Agency, Residential Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security | 9 | 8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 36,902 | $ 59,107 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (206) | (1,378) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 10,126 | 4,009 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (66) | (198) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 47,028 | 63,116 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses | $ (272) | $ (1,576) |
Agency, Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security | 13 | 9 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 67,649 | $ 21,356 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (563) | (447) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 32,678 | 52,640 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (478) | (2,717) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 100,327 | 73,996 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses | $ (1,041) | $ (3,164) |
Asset-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security | 8 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 37,738 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (198) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 37,738 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses | $ (198) | |
Corporate Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security | 4 | 15 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 6,103 | $ 25,762 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (37) | (342) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 4,642 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (268) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 6,103 | 30,404 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses | $ (37) | $ (610) |
U.S. Treasury Notes | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security | 18 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 23,835 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (52) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 9,865 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (137) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 33,700 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses | $ (189) | |
Non-Agency, Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security | 5 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 30,458 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (1,000) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 30,458 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses | $ (1,000) | |
Other Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Number of Securities | Security | 1 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 2,844 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (131) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 2,844 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Unrealized Losses | $ (131) |
Securities - Summary of Gross_2
Securities - Summary of Gross Unrealized Losses and Fair Values, Aggregated by Investment Category and Length of Individual Securities Continuous Unrealized Loss Position Held-to-maturity (Details) $ in Thousands | Dec. 31, 2018USD ($)Security |
Schedule Of Held To Maturity Securities [Line Items] | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Number of Securities | Security | 46 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 36,251 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (711) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 42,862 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (949) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Total Fair Value | 79,113 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Total Unrealized Losses | $ (1,660) |
Obligations of States, Municipalities, and Political Subdivisions | |
Schedule Of Held To Maturity Securities [Line Items] | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Number of Securities | Security | 23 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 8,127 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (58) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 8,792 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (152) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Total Fair Value | 16,919 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Total Unrealized Losses | $ (210) |
Agency, Residential Mortgage-Backed Securities | |
Schedule Of Held To Maturity Securities [Line Items] | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Number of Securities | Security | 16 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 6,625 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (150) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 21,139 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (381) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Total Fair Value | 27,764 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Total Unrealized Losses | $ (531) |
Non-Agency, Residential Mortgage-Backed Securities | |
Schedule Of Held To Maturity Securities [Line Items] | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Number of Securities | Security | 7 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 21,499 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (503) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 12,931 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Unrealized Losses | (416) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Total Fair Value | 34,430 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Total Unrealized Losses | $ (919) |
Securities - Summary of Proceed
Securities - Summary of Proceeds From Sales of Securities Available-for-sale and Associated Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Available For Sale Securities Gross Realized Gain Loss [Abstract] | |||
Proceeds | $ 92,103 | $ 5,134 | $ 8 |
Gross gains | 1,274 | $ 164 | $ 8 |
Gross losses | $ 123 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale Securities Debt Maturities, Amortized Cost [Abstract] | ||
Available-for-sale Securities, Due in one year or less, Amortized Cost | $ 51,901 | |
Available-for-sale Securities, Due from one to five years, Amortized Cost | 99,605 | |
Available-for-sale Securities, Due from five to ten years, Amortized Cost | 136,479 | |
Available-for-sale Securities, Due after ten years, Amortized Cost | 104,697 | |
Available-for-sale Securities, Amortized Cost | 1,183,404 | $ 834,254 |
Held-to-maturity Securities Debt Maturities, Amortized Cost [Abstract] | ||
Held-to-maturity Securities, Due from one to five years, Amortized Cost | 3,800 | |
Held-to-maturity Securities, Due from five to ten years, Amortized Cost | 612 | |
Held-to-maturity Securities, Amortized Cost | 4,412 | 99,266 |
Available-for-sale Securities Debt Maturities, Fair Value [Abstract] | ||
Available-for-sale Securities, Due in one year or less, Fair Value | 52,093 | |
Available-for-sale Securities, Due from one to five years, Fair Value | 100,593 | |
Available-for-sale Securities, Due from five to ten years, Fair Value | 137,843 | |
Available-for-sale Securities, Due after ten years, Fair Value | 104,730 | |
Available-for-sale Securities, Fair Value, Total | 1,186,292 | 817,656 |
Held-to-maturity Securities Debt Maturities, Fair Value [Abstract] | ||
Held-to-maturity Securities, Due from one to five years, Fair Value | 3,866 | |
Held-to-maturity Securities, Due from five to ten years, Fair Value | 632 | |
Held-to-maturity securities, Fair Value, Total | 4,498 | $ 97,739 |
Mortgage and Asset-Backed Securities | ||
Available-for-sale Securities Debt Maturities, Amortized Cost [Abstract] | ||
Available-for-sale Securities, Not due at single maturity, Amortized Cost | 790,722 | |
Available-for-sale Securities Debt Maturities, Fair Value [Abstract] | ||
Available-for-sale Securities, Not due at single maturity, Fair Value | $ 791,033 |
Loans and Lease Receivables - S
Loans and Lease Receivables - Schedule of Outstanding Loan and Lease Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and leases | $ 3,780,636 | $ 3,499,463 | ||
Net unamortized deferred fees and costs | 2,289 | (1,293) | ||
Initial direct costs | 2,736 | 3,456 | ||
Allowance for loan and lease losses | (31,936) | (25,201) | $ (16,706) | $ (10,923) |
Net loans and leases | 3,753,725 | 3,476,425 | ||
Lease financing receivables | ||||
Net minimum lease payments | 193,359 | 204,646 | ||
Unguaranteed residual values | 1,347 | 1,535 | ||
Unearned income | (16,932) | (18,384) | ||
Total lease financing receivables | 177,774 | 187,797 | ||
Initial direct costs | 2,736 | 3,456 | ||
Lease financial receivables before allowance for lease losses | 180,510 | 191,253 | ||
Commercial Real Estate | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and leases | 1,275,058 | 1,261,594 | ||
Allowance for loan and lease losses | (7,965) | (7,540) | (4,794) | (1,945) |
Residential Real Estate | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and leases | 711,499 | 704,899 | ||
Allowance for loan and lease losses | (1,990) | (1,751) | (1,638) | (2,483) |
Construction, Land Development, and Other Land | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and leases | 279,403 | 186,258 | ||
Allowance for loan and lease losses | (610) | (466) | (222) | (742) |
Commercial and Industrial | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and leases | 1,330,418 | 1,145,240 | ||
Allowance for loan and lease losses | (19,377) | (12,932) | (7,418) | (4,196) |
Installment and Other | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and leases | 6,484 | 13,675 | ||
Allowance for loan and lease losses | (50) | (49) | (41) | (334) |
Lease Financing Receivables | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans and leases | 177,774 | 187,797 | ||
Allowance for loan and lease losses | $ (1,944) | $ (2,463) | $ (2,593) | $ (1,223) |
Loans and Lease Receivables - A
Loans and Lease Receivables - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2018 | May 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans and leases | $ 3,780,636,000 | $ 3,499,463,000 | ||||
Loans held for sale pledged as security for borrowings | 1,800,000,000 | 1,400,000,000 | ||||
Allowance for loan and lease losses | 31,936,000 | 25,201,000 | $ 16,706,000 | $ 10,923,000 | ||
Acquired Impaired Loans | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans acquired | 0 | 0 | ||||
Allowance for loan and lease losses | 2,800,000 | 2,700,000 | ||||
Acquired Impaired Loans | First Evanston Bancorp, Inc. | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans acquired | $ 25,025,000 | |||||
Acquired Impaired Loans | Oak Park River Forest Bankshares, Inc. | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans acquired | $ 52,927,000 | |||||
Acquired Non-Impaired Loans and Leases | Oak Park River Forest Bankshares, Inc. | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans acquired | 204,500,000 | |||||
Acquired Non-Impaired Loans and Leases | First Evanston | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans acquired | 891,000,000 | |||||
Installment and Other | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans and leases | 6,484,000 | 13,675,000 | ||||
Overdraft deposits reclassified as loans | 852,000 | 1,700,000 | ||||
Allowance for loan and lease losses | 50,000 | 49,000 | $ 41,000 | $ 334,000 | ||
U.S. Government Guaranteed Loans | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans and leases | $ 119,800,000 | $ 108,700,000 |
Loans and Lease Receivables -_2
Loans and Lease Receivables - Summary of Minimum Annual Lease Payments for Lease Financing Receivables (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Receivables [Abstract] | |
2020 | $ 71,820 |
2021 | 55,396 |
2022 | 37,696 |
2023 | 20,466 |
2024 | 7,475 |
Thereafter | 506 |
Total | $ 193,359 |
Loans and Lease Receivables -_3
Loans and Lease Receivables - Summary of Balances for Each Respective Loan and Lease Category (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | $ 3,785,661 | $ 3,501,626 | $ 2,277,492 |
Originated | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 2,835,652 | 2,237,798 | |
Acquired Impaired | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 258,668 | 277,542 | |
Acquired Non-Impaired | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 691,341 | 986,286 | |
Commercial Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 1,276,542 | 1,261,607 | 891,693 |
Commercial Real Estate | Originated | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 792,263 | 652,234 | |
Commercial Real Estate | Acquired Impaired | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 135,914 | 146,808 | |
Commercial Real Estate | Acquired Non-Impaired | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 348,365 | 462,565 | |
Residential Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 711,822 | 704,902 | 577,218 |
Residential Real Estate | Originated | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 483,072 | 466,309 | |
Residential Real Estate | Acquired Impaired | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 100,223 | 113,934 | |
Residential Real Estate | Acquired Non-Impaired | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 128,527 | 124,659 | |
Construction, Land Development, and Other Land | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 278,657 | 185,349 | 105,429 |
Construction, Land Development, and Other Land | Originated | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 235,794 | 144,128 | |
Construction, Land Development, and Other Land | Acquired Impaired | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 5,373 | 3,779 | |
Construction, Land Development, and Other Land | Acquired Non-Impaired | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 37,490 | 37,442 | |
Commercial and Industrial | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 1,331,565 | 1,144,797 | 521,238 |
Commercial and Industrial | Originated | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 1,160,996 | 803,508 | |
Commercial and Industrial | Acquired Impaired | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 16,909 | 12,617 | |
Commercial and Industrial | Acquired Non-Impaired | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 153,660 | 328,672 | |
Installment and Other | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 6,565 | 13,718 | 4,228 |
Installment and Other | Originated | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 5,372 | 11,718 | |
Installment and Other | Acquired Impaired | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 249 | 404 | |
Installment and Other | Acquired Non-Impaired | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 944 | 1,596 | |
Lease Financing Receivables | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 180,510 | 191,253 | $ 177,686 |
Lease Financing Receivables | Originated | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | 158,155 | 159,901 | |
Lease Financing Receivables | Acquired Non-Impaired | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans and leases | $ 22,355 | $ 31,352 |
Loans and Lease Receivables - E
Loans and Lease Receivables - Estimated Fair Value of Impaired Loans Acquired at Acquisition (Details) - Acquired Impaired Loans - USD ($) | Dec. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2018 | May 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||||
Estimated fair value of impaired loans acquired at acquisition | $ 0 | $ 0 | ||
Oak Park River Forest Bankshares, Inc. | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Undiscounted contractual cash flows | $ 74,092,000 | |||
Undiscounted cash flows not expected to be collected (non-accretable difference) | 11,401,000 | |||
Undiscounted cash flows expected to be collected | 62,691,000 | |||
Accretable yield at acquisition | (9,764,000) | |||
Estimated fair value of impaired loans acquired at acquisition | $ 52,927,000 | |||
First Evanston Bancorp, Inc. | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Undiscounted contractual cash flows | $ 33,594,000 | |||
Undiscounted cash flows not expected to be collected (non-accretable difference) | 5,003,000 | |||
Undiscounted cash flows expected to be collected | 28,591,000 | |||
Accretable yield at acquisition | (3,566,000) | |||
Estimated fair value of impaired loans acquired at acquisition | $ 25,025,000 |
Loans and Lease Receivables -_4
Loans and Lease Receivables - Summary of Outstanding Balance and Carrying Amount of All Acquired Impaired Loans (Details) - Acquired Impaired Loans - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding Balance | $ 380,880 | $ 428,768 |
Carrying Value | 258,668 | 277,542 |
Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding Balance | 189,969 | 216,137 |
Carrying Value | 135,914 | 146,808 |
Residential Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding Balance | 151,641 | 173,962 |
Carrying Value | 100,223 | 113,934 |
Construction, Land Development, and Other Land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding Balance | 14,841 | 11,962 |
Carrying Value | 5,373 | 3,779 |
Commercial and Industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding Balance | 23,330 | 24,972 |
Carrying Value | 16,909 | 12,617 |
Installment and Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding Balance | 1,099 | 1,735 |
Carrying Value | $ 249 | $ 404 |
Loans and Lease Receivables -_5
Loans and Lease Receivables - Summary of Changes in Accretable Yield for Acquired Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Beginning balance | $ 37,115 | $ 36,446 | $ 36,868 |
Additions | 9,764 | 3,566 | |
Accretion to interest income | (24,535) | (23,982) | (24,597) |
Reclassification from nonaccretable difference | 17,665 | 21,085 | 24,175 |
Ending balance | $ 40,009 | $ 37,115 | $ 36,446 |
Loans and Lease Receivables -_6
Loans and Lease Receivables - Schedule of Unpaid Principal Balance and Carrying Value for Acquired Non-impaired Loans and Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans and leases | $ 3,785,661 | $ 3,501,626 | $ 2,277,492 |
Acquired Non-impaired Loans and Leases | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 710,161 | 1,018,921 | |
Loans and leases | 691,341 | 986,286 | |
Commercial Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans and leases | 1,276,542 | 1,261,607 | 891,693 |
Commercial Real Estate | Acquired Non-impaired Loans and Leases | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 356,787 | 473,262 | |
Loans and leases | 348,365 | 462,565 | |
Residential Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans and leases | 711,822 | 704,902 | 577,218 |
Residential Real Estate | Acquired Non-impaired Loans and Leases | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 130,412 | 127,478 | |
Loans and leases | 128,527 | 124,659 | |
Construction, Land Development, and Other Land | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans and leases | 278,657 | 185,349 | 105,429 |
Construction, Land Development, and Other Land | Acquired Non-impaired Loans and Leases | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 38,416 | 38,494 | |
Loans and leases | 37,490 | 37,442 | |
Commercial and Industrial | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans and leases | 1,331,565 | 1,144,797 | 521,238 |
Commercial and Industrial | Acquired Non-impaired Loans and Leases | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 159,599 | 344,879 | |
Loans and leases | 153,660 | 328,672 | |
Installment and Other | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans and leases | 6,565 | 13,718 | 4,228 |
Installment and Other | Acquired Non-impaired Loans and Leases | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 971 | 1,831 | |
Loans and leases | 944 | 1,596 | |
Lease Financing Receivables | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans and leases | 180,510 | 191,253 | $ 177,686 |
Lease Financing Receivables | Acquired Non-impaired Loans and Leases | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 23,976 | 32,977 | |
Loans and leases | $ 22,355 | $ 31,352 |
Allowance for Loan and Lease _3
Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments - Summary of Allowance for Loan and Lease Losses and Corresponding Loan and Lease Balances (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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan and lease losses | |||||||||||
Beginning balance | $ 25,201 | $ 16,706 | $ 25,201 | $ 16,706 | $ 10,923 | ||||||
Provision (release) | $ 4,387 | $ 5,931 | $ 6,391 | 3,999 | $ 3,882 | $ 5,842 | $ 3,956 | 5,115 | 20,708 | 18,795 | 12,653 |
Charge-offs | (15,859) | (11,804) | (8,196) | ||||||||
Recoveries | 1,886 | 1,504 | 1,326 | ||||||||
Ending balance | 31,936 | 25,201 | 31,936 | 25,201 | 16,706 | ||||||
Ending balance: | |||||||||||
Individually evaluated for impairment | 10,690 | 6,649 | 10,690 | 6,649 | 3,965 | ||||||
Collectively evaluated for impairment | 18,470 | 15,817 | 18,470 | 15,817 | 8,867 | ||||||
Ending balance | 31,936 | 25,201 | 31,936 | 25,201 | 16,706 | ||||||
Loans and leases ending balance: | |||||||||||
Individually evaluated for impairment | 68,741 | 35,914 | 68,741 | 35,914 | 31,111 | ||||||
Collectively evaluated for impairment | 3,458,252 | 3,188,170 | 3,458,252 | 3,188,170 | 1,918,691 | ||||||
Total loans and leases | 3,785,661 | 3,501,626 | 3,785,661 | 3,501,626 | 2,277,492 | ||||||
Loans Acquired with Deteriorated Credit Quality | |||||||||||
Ending balance: | |||||||||||
Loans acquired with deteriorated credit quality | 2,776 | 2,735 | 2,776 | 2,735 | 3,874 | ||||||
Loans and leases ending balance: | |||||||||||
Loans acquired with deteriorated credit quality | 258,668 | 277,542 | 258,668 | 277,542 | 327,690 | ||||||
Commercial Real Estate | |||||||||||
Allowance for loan and lease losses | |||||||||||
Beginning balance | 7,540 | 4,794 | 7,540 | 4,794 | 1,945 | ||||||
Provision (release) | 4,805 | 4,543 | 4,343 | ||||||||
Charge-offs | (4,950) | (1,865) | (1,494) | ||||||||
Recoveries | 570 | 68 | |||||||||
Ending balance | 7,965 | 7,540 | 7,965 | 7,540 | 4,794 | ||||||
Ending balance: | |||||||||||
Individually evaluated for impairment | 2,614 | 2,191 | 2,614 | 2,191 | 1,101 | ||||||
Collectively evaluated for impairment | 4,414 | 4,105 | 4,414 | 4,105 | 1,765 | ||||||
Ending balance | 7,965 | 7,540 | 7,965 | 7,540 | 4,794 | ||||||
Loans and leases ending balance: | |||||||||||
Individually evaluated for impairment | 26,396 | 11,983 | 26,396 | 11,983 | 13,884 | ||||||
Collectively evaluated for impairment | 1,114,232 | 1,102,816 | 1,114,232 | 1,102,816 | 711,097 | ||||||
Total loans and leases | 1,276,542 | 1,261,607 | 1,276,542 | 1,261,607 | 891,693 | ||||||
Commercial Real Estate | Loans Acquired with Deteriorated Credit Quality | |||||||||||
Ending balance: | |||||||||||
Loans acquired with deteriorated credit quality | 937 | 1,244 | 937 | 1,244 | 1,928 | ||||||
Loans and leases ending balance: | |||||||||||
Loans acquired with deteriorated credit quality | 135,914 | 146,808 | 135,914 | 146,808 | 166,712 | ||||||
Residential Real Estate | |||||||||||
Allowance for loan and lease losses | |||||||||||
Beginning balance | 1,751 | 1,638 | 1,751 | 1,638 | 2,483 | ||||||
Provision (release) | 67 | 113 | (405) | ||||||||
Charge-offs | (113) | (440) | |||||||||
Recoveries | 285 | ||||||||||
Ending balance | 1,990 | 1,751 | 1,990 | 1,751 | 1,638 | ||||||
Ending balance: | |||||||||||
Individually evaluated for impairment | 124 | 61 | 124 | 61 | 158 | ||||||
Collectively evaluated for impairment | 1,191 | 1,323 | 1,191 | 1,323 | 1,047 | ||||||
Ending balance | 1,990 | 1,751 | 1,990 | 1,751 | 1,638 | ||||||
Loans and leases ending balance: | |||||||||||
Individually evaluated for impairment | 2,398 | 2,137 | 2,398 | 2,137 | 2,429 | ||||||
Collectively evaluated for impairment | 609,201 | 588,831 | 609,201 | 588,831 | 430,227 | ||||||
Total loans and leases | 711,822 | 704,902 | 711,822 | 704,902 | 577,218 | ||||||
Residential Real Estate | Loans Acquired with Deteriorated Credit Quality | |||||||||||
Ending balance: | |||||||||||
Loans acquired with deteriorated credit quality | 675 | 367 | 675 | 367 | 433 | ||||||
Loans and leases ending balance: | |||||||||||
Loans acquired with deteriorated credit quality | 100,223 | 113,934 | 100,223 | 113,934 | 144,562 | ||||||
Construction, Land Development, and Other Land | |||||||||||
Allowance for loan and lease losses | |||||||||||
Beginning balance | 466 | 222 | 466 | 222 | 742 | ||||||
Provision (release) | 144 | 662 | (520) | ||||||||
Charge-offs | (418) | ||||||||||
Ending balance | 610 | 466 | 610 | 466 | 222 | ||||||
Ending balance: | |||||||||||
Collectively evaluated for impairment | 584 | 466 | 584 | 466 | 145 | ||||||
Ending balance | 610 | 466 | 610 | 466 | 222 | ||||||
Loans and leases ending balance: | |||||||||||
Individually evaluated for impairment | 2,644 | 2,644 | |||||||||
Collectively evaluated for impairment | 270,640 | 181,570 | 270,640 | 181,570 | 99,483 | ||||||
Total loans and leases | 278,657 | 185,349 | 278,657 | 185,349 | 105,429 | ||||||
Construction, Land Development, and Other Land | Loans Acquired with Deteriorated Credit Quality | |||||||||||
Ending balance: | |||||||||||
Loans acquired with deteriorated credit quality | 26 | 26 | 77 | ||||||||
Loans and leases ending balance: | |||||||||||
Loans acquired with deteriorated credit quality | 5,373 | 3,779 | 5,373 | 3,779 | 5,946 | ||||||
Commercial and Industrial | |||||||||||
Allowance for loan and lease losses | |||||||||||
Beginning balance | 12,932 | 7,418 | 12,932 | 7,418 | 4,196 | ||||||
Provision (release) | 14,460 | 12,089 | 6,058 | ||||||||
Charge-offs | (8,171) | (6,944) | (2,836) | ||||||||
Recoveries | 156 | 369 | |||||||||
Ending balance | 19,377 | 12,932 | 19,377 | 12,932 | 7,418 | ||||||
Ending balance: | |||||||||||
Individually evaluated for impairment | 7,952 | 4,397 | 7,952 | 4,397 | 2,692 | ||||||
Collectively evaluated for impairment | 10,287 | 7,413 | 10,287 | 7,413 | 3,308 | ||||||
Ending balance | 19,377 | 12,932 | 19,377 | 12,932 | 7,418 | ||||||
Loans and leases ending balance: | |||||||||||
Individually evaluated for impairment | 37,303 | 21,794 | 37,303 | 21,794 | 14,784 | ||||||
Collectively evaluated for impairment | 1,277,353 | 1,110,386 | 1,277,353 | 1,110,386 | 496,446 | ||||||
Total loans and leases | 1,331,565 | 1,144,797 | 1,331,565 | 1,144,797 | 521,238 | ||||||
Commercial and Industrial | Loans Acquired with Deteriorated Credit Quality | |||||||||||
Ending balance: | |||||||||||
Loans acquired with deteriorated credit quality | 1,138 | 1,122 | 1,138 | 1,122 | 1,418 | ||||||
Loans and leases ending balance: | |||||||||||
Loans acquired with deteriorated credit quality | 16,909 | 12,617 | 16,909 | 12,617 | 10,008 | ||||||
Installment and Other | |||||||||||
Allowance for loan and lease losses | |||||||||||
Beginning balance | 49 | 41 | 49 | 41 | 334 | ||||||
Provision (release) | 15 | 68 | 34 | ||||||||
Charge-offs | (16) | (60) | (327) | ||||||||
Recoveries | 2 | ||||||||||
Ending balance | 50 | 49 | 50 | 49 | 41 | ||||||
Ending balance: | |||||||||||
Individually evaluated for impairment | 14 | ||||||||||
Collectively evaluated for impairment | 50 | 47 | 50 | 47 | 9 | ||||||
Ending balance | 50 | 49 | 50 | 49 | 41 | ||||||
Loans and leases ending balance: | |||||||||||
Individually evaluated for impairment | 14 | ||||||||||
Collectively evaluated for impairment | 6,316 | 13,314 | 6,316 | 13,314 | 3,752 | ||||||
Total loans and leases | 6,565 | 13,718 | 6,565 | 13,718 | 4,228 | ||||||
Installment and Other | Loans Acquired with Deteriorated Credit Quality | |||||||||||
Ending balance: | |||||||||||
Loans acquired with deteriorated credit quality | 2 | 2 | 18 | ||||||||
Loans and leases ending balance: | |||||||||||
Loans acquired with deteriorated credit quality | 249 | 404 | 249 | 404 | 462 | ||||||
Lease Financing Receivables | |||||||||||
Allowance for loan and lease losses | |||||||||||
Beginning balance | $ 2,463 | $ 2,593 | 2,463 | 2,593 | 1,223 | ||||||
Provision (release) | 1,217 | 1,320 | 3,143 | ||||||||
Charge-offs | (2,609) | (2,517) | (3,099) | ||||||||
Recoveries | 873 | 1,067 | 1,326 | ||||||||
Ending balance | 1,944 | 2,463 | 1,944 | 2,463 | 2,593 | ||||||
Ending balance: | |||||||||||
Collectively evaluated for impairment | 1,944 | 2,463 | 1,944 | 2,463 | 2,593 | ||||||
Ending balance | 1,944 | 2,463 | 1,944 | 2,463 | 2,593 | ||||||
Loans and leases ending balance: | |||||||||||
Collectively evaluated for impairment | 180,510 | 191,253 | 180,510 | 191,253 | 177,686 | ||||||
Total loans and leases | $ 180,510 | $ 191,253 | $ 180,510 | $ 191,253 | $ 177,686 |
Allowance for Loan and Lease _4
Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans And Leases Receivable Disclosure [Line Items] | |||
Increase (decrease) in allowance for loan and lease losses | $ 6,700,000 | $ 8,500,000 | $ 5,800,000 |
Commitments outstanding on troubled debt restructurings | 500,000 | 500,000 | 0 |
Recorded investment in troubled debt restructurings that subsequently defaulted within twelve months | 348,000 | 340,000 | 144,000 |
Reserve for unfunded commitments | 1,200,000 | 1,200,000 | |
Provisions for unfunded commitments | 80,000 | 317,000 | 162,000 |
Charge-offs or recoveries related to reserve for unfunded commitments | 0 | 0 | 0 |
Acquired Impaired Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Increase (decrease) in allowance for loan and lease losses | 41,000 | (1,100,000) | 2,300,000 |
Individually Evaluated For Impairment | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Increase (decrease) in allowance for loan and lease losses | 4,000,000 | 2,700,000 | 2,900,000 |
Collectively Evaluated For Impairment | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Increase (decrease) in allowance for loan and lease losses | $ 2,700,000 | $ 7,000,000 | $ 572,000 |
Allowance for Loan and Lease _5
Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments - Summary of Recorded Investment, Unpaid Principal Balance, and Related Allowance for Loans and Leases Considered Impaired (Details) - Loans Excluding Acquired Impaired Loans - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable Impaired [Line Items] | |||
Recorded Investment | $ 68,741 | $ 35,914 | $ 31,111 |
Unpaid Principal Balance | 75,668 | 41,231 | 34,479 |
Related Allowance | 10,690 | 6,649 | 3,965 |
Average Recorded Investment | 51,907 | 34,687 | 21,479 |
Interest Income Recognized | 4,855 | 2,139 | 1,555 |
Commercial Real Estate | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 16,556 | 6,110 | 11,425 |
Recorded Investment, With an allowance recorded | 9,840 | 5,873 | 2,459 |
Unpaid Principal Balance, With no related allowance recorded | 19,808 | 7,693 | 12,936 |
Unpaid Principal Balance, With an allowance recorded | 10,691 | 6,313 | 2,634 |
Related Allowance | 2,614 | 2,191 | 1,101 |
Average Recorded Investment, With no related allowance recorded | 11,218 | 8,968 | 10,482 |
Average Recorded Investment, With an allowance recorded | 8,863 | 5,328 | 1,988 |
Interest Income Recognized, With no related allowance recorded | 1,257 | 590 | 525 |
Interest Income Recognized, With an allowance recorded | 711 | 270 | 187 |
Residential Real Estate | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 2,165 | 1,886 | 2,075 |
Recorded Investment, With an allowance recorded | 233 | 251 | 354 |
Unpaid Principal Balance, With no related allowance recorded | 2,253 | 1,858 | 2,046 |
Unpaid Principal Balance, With an allowance recorded | 233 | 253 | 351 |
Related Allowance | 124 | 61 | 158 |
Average Recorded Investment, With no related allowance recorded | 2,285 | 1,917 | 1,781 |
Average Recorded Investment, With an allowance recorded | 195 | 311 | 422 |
Interest Income Recognized, With no related allowance recorded | 192 | 43 | 72 |
Interest Income Recognized, With an allowance recorded | 7 | 4 | 6 |
Construction, Land Development, and Other Land | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 2,644 | ||
Unpaid Principal Balance, With no related allowance recorded | 3,000 | ||
Average Recorded Investment, With no related allowance recorded | 220 | 295 | |
Average Recorded Investment, With an allowance recorded | 14 | ||
Interest Income Recognized, With no related allowance recorded | 191 | 2 | |
Commercial and Industrial | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With no related allowance recorded | 19,211 | 11,193 | 5,470 |
Recorded Investment, With an allowance recorded | 18,092 | 10,601 | 9,314 |
Unpaid Principal Balance, With no related allowance recorded | 20,398 | 13,961 | 6,774 |
Unpaid Principal Balance, With an allowance recorded | 19,285 | 11,153 | 9,724 |
Related Allowance | 7,952 | 4,397 | 2,692 |
Average Recorded Investment, With no related allowance recorded | 14,137 | 8,680 | 2,875 |
Average Recorded Investment, With an allowance recorded | 14,989 | 9,472 | 3,460 |
Interest Income Recognized, With no related allowance recorded | 1,487 | 483 | 265 |
Interest Income Recognized, With an allowance recorded | $ 1,010 | 749 | 486 |
Installment and Other | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With an allowance recorded | 14 | ||
Unpaid Principal Balance, With an allowance recorded | 14 | ||
Related Allowance | 14 | ||
Average Recorded Investment, With an allowance recorded | $ 11 | 162 | |
Interest Income Recognized, With an allowance recorded | $ 12 |
Allowance for Loan and Lease _6
Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments - Summary of Risk Rating Categories of Loans and Leases Considered for Inclusion in Allowance for Loan and Lease Losses Calculation (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | $ 3,785,661 | $ 3,501,626 | $ 2,277,492 |
Commercial Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 1,276,542 | 1,261,607 | 891,693 |
Residential Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 711,822 | 704,902 | 577,218 |
Construction, Land Development, and Other Land | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 278,657 | 185,349 | 105,429 |
Commercial and Industrial | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 1,331,565 | 1,144,797 | 521,238 |
Installment and Other | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 6,565 | 13,718 | 4,228 |
Lease Financing Receivables | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 180,510 | 191,253 | $ 177,686 |
Loans Excluding Acquired Impaired Loans | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 3,526,993 | 3,224,084 | |
Loans Excluding Acquired Impaired Loans | Commercial Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 1,140,628 | 1,114,799 | |
Loans Excluding Acquired Impaired Loans | Residential Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 611,599 | 590,968 | |
Loans Excluding Acquired Impaired Loans | Construction, Land Development, and Other Land | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 273,284 | 181,570 | |
Loans Excluding Acquired Impaired Loans | Commercial and Industrial | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 1,314,656 | 1,132,180 | |
Loans Excluding Acquired Impaired Loans | Installment and Other | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 6,316 | 13,314 | |
Loans Excluding Acquired Impaired Loans | Lease Financing Receivables | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 180,510 | 191,253 | |
Loans Excluding Acquired Impaired Loans | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 3,088,584 | 2,870,431 | |
Loans Excluding Acquired Impaired Loans | Pass | Commercial Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 984,881 | 1,009,041 | |
Loans Excluding Acquired Impaired Loans | Pass | Residential Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 584,363 | 553,665 | |
Loans Excluding Acquired Impaired Loans | Pass | Construction, Land Development, and Other Land | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 247,775 | 147,123 | |
Loans Excluding Acquired Impaired Loans | Pass | Commercial and Industrial | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 1,087,856 | 962,291 | |
Loans Excluding Acquired Impaired Loans | Pass | Installment and Other | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 6,013 | 9,997 | |
Loans Excluding Acquired Impaired Loans | Pass | Lease Financing Receivables | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 177,696 | 188,314 | |
Loans Excluding Acquired Impaired Loans | Watch | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 299,432 | 253,552 | |
Loans Excluding Acquired Impaired Loans | Watch | Commercial Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 99,803 | 76,276 | |
Loans Excluding Acquired Impaired Loans | Watch | Residential Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 21,856 | 29,522 | |
Loans Excluding Acquired Impaired Loans | Watch | Construction, Land Development, and Other Land | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 18,181 | 31,376 | |
Loans Excluding Acquired Impaired Loans | Watch | Commercial and Industrial | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 159,282 | 112,996 | |
Loans Excluding Acquired Impaired Loans | Watch | Installment and Other | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 302 | 3,302 | |
Loans Excluding Acquired Impaired Loans | Watch | Lease Financing Receivables | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 8 | 80 | |
Loans Excluding Acquired Impaired Loans | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 64,559 | 62,437 | |
Loans Excluding Acquired Impaired Loans | Special Mention | Commercial Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 27,484 | 17,602 | |
Loans Excluding Acquired Impaired Loans | Special Mention | Residential Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 3,648 | 5,656 | |
Loans Excluding Acquired Impaired Loans | Special Mention | Construction, Land Development, and Other Land | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 4,684 | 3,071 | |
Loans Excluding Acquired Impaired Loans | Special Mention | Commercial and Industrial | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 26,944 | 34,314 | |
Loans Excluding Acquired Impaired Loans | Special Mention | Lease Financing Receivables | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 1,799 | 1,794 | |
Loans Excluding Acquired Impaired Loans | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 74,139 | 37,417 | |
Loans Excluding Acquired Impaired Loans | Substandard | Commercial Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 28,460 | 11,880 | |
Loans Excluding Acquired Impaired Loans | Substandard | Residential Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 1,732 | 2,125 | |
Loans Excluding Acquired Impaired Loans | Substandard | Construction, Land Development, and Other Land | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 2,644 | ||
Loans Excluding Acquired Impaired Loans | Substandard | Commercial and Industrial | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 40,574 | 22,579 | |
Loans Excluding Acquired Impaired Loans | Substandard | Installment and Other | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 1 | 15 | |
Loans Excluding Acquired Impaired Loans | Substandard | Lease Financing Receivables | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 728 | 818 | |
Loans Excluding Acquired Impaired Loans | Doubtful | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | 279 | 247 | |
Loans Excluding Acquired Impaired Loans | Doubtful | Lease Financing Receivables | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans and leases | $ 279 | $ 247 |
Allowance for Loan and Lease _7
Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments - Summary of Contractual Delinquency Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total loans and leases | $ 3,785,661 | $ 3,501,626 | $ 2,277,492 |
Commercial Real Estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total loans and leases | 1,276,542 | 1,261,607 | 891,693 |
Residential Real Estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total loans and leases | 711,822 | 704,902 | 577,218 |
Construction, Land Development, and Other Land | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total loans and leases | 278,657 | 185,349 | 105,429 |
Commercial and Industrial | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total loans and leases | 1,331,565 | 1,144,797 | 521,238 |
Installment and Other | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total loans and leases | 6,565 | 13,718 | 4,228 |
Lease Financing Receivables | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total loans and leases | 180,510 | 191,253 | $ 177,686 |
Acquired Non-Impaired and Originated Loans | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 76,436 | 50,297 | |
Non-accrual | 36,272 | 25,834 | |
Current | 3,450,557 | 3,173,787 | |
Total loans and leases | 3,526,993 | 3,224,084 | |
Acquired Non-Impaired and Originated Loans | 30-59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 25,963 | 19,697 | |
Acquired Non-Impaired and Originated Loans | 60-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 14,201 | 4,766 | |
Acquired Non-Impaired and Originated Loans | Commercial Real Estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 31,696 | 18,288 | |
Non-accrual | 12,274 | 9,484 | |
Current | 1,108,932 | 1,096,511 | |
Total loans and leases | 1,140,628 | 1,114,799 | |
Acquired Non-Impaired and Originated Loans | Commercial Real Estate | 30-59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 14,269 | 6,659 | |
Acquired Non-Impaired and Originated Loans | Commercial Real Estate | 60-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 5,153 | 2,145 | |
Acquired Non-Impaired and Originated Loans | Residential Real Estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 5,018 | 7,014 | |
Non-accrual | 1,371 | 1,815 | |
Current | 606,581 | 583,954 | |
Total loans and leases | 611,599 | 590,968 | |
Acquired Non-Impaired and Originated Loans | Residential Real Estate | 30-59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 3,187 | 4,488 | |
Acquired Non-Impaired and Originated Loans | Residential Real Estate | 60-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 460 | 711 | |
Acquired Non-Impaired and Originated Loans | Construction, Land Development, and Other Land | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 4,460 | ||
Current | 268,824 | 181,570 | |
Total loans and leases | 273,284 | 181,570 | |
Acquired Non-Impaired and Originated Loans | Construction, Land Development, and Other Land | 60-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 4,460 | ||
Acquired Non-Impaired and Originated Loans | Commercial and Industrial | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 33,534 | 21,137 | |
Non-accrual | 22,151 | 13,932 | |
Current | 1,281,122 | 1,111,043 | |
Total loans and leases | 1,314,656 | 1,132,180 | |
Acquired Non-Impaired and Originated Loans | Commercial and Industrial | 30-59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 7,789 | 5,829 | |
Acquired Non-Impaired and Originated Loans | Commercial and Industrial | 60-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 3,594 | 1,376 | |
Acquired Non-Impaired and Originated Loans | Installment and Other | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 136 | 1,948 | |
Non-accrual | 1 | 12 | |
Current | 6,180 | 11,366 | |
Total loans and leases | 6,316 | 13,314 | |
Acquired Non-Impaired and Originated Loans | Installment and Other | 30-59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 133 | 1,932 | |
Acquired Non-Impaired and Originated Loans | Installment and Other | 60-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 2 | 4 | |
Acquired Non-Impaired and Originated Loans | Lease Financing Receivables | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,592 | 1,910 | |
Non-accrual | 475 | 591 | |
Current | 178,918 | 189,343 | |
Total loans and leases | 180,510 | 191,253 | |
Acquired Non-Impaired and Originated Loans | Lease Financing Receivables | 30-59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 585 | 789 | |
Acquired Non-Impaired and Originated Loans | Lease Financing Receivables | 60-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 532 | $ 530 |
Allowance for Loan and Lease _8
Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments - Summary of TDR's by Loan Category (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan | |
Financing Receivable Modifications [Line Items] | |||
Number of Loans | Loan | 27 | 22 | 10 |
Pre-Modification Outstanding Recorded Investment | $ 12,700 | $ 11,039 | $ 3,117 |
Post-Modification Outstanding Recorded Investment | 10,571 | 9,127 | 2,630 |
Charge-offs | 2,129 | 1,912 | 487 |
Specific Reserves | $ 2,166 | $ 2,246 | $ 357 |
Accruing | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | Loan | 9 | 7 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 1,771 | $ 1,813 | $ 1,061 |
Post-Modification Outstanding Recorded Investment | 1,771 | 1,813 | $ 1,061 |
Specific Reserves | $ 341 | $ 213 | |
Non-accruing | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | Loan | 18 | 15 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 10,929 | $ 9,226 | $ 2,056 |
Post-Modification Outstanding Recorded Investment | 8,800 | 7,314 | 1,569 |
Charge-offs | 2,129 | 1,912 | 487 |
Specific Reserves | $ 1,825 | $ 2,033 | $ 357 |
Commercial Real Estate | Accruing | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | Loan | 5 | 4 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 1,451 | $ 1,508 | $ 912 |
Post-Modification Outstanding Recorded Investment | 1,451 | 1,508 | $ 912 |
Specific Reserves | $ 223 | $ 113 | |
Commercial Real Estate | Non-accruing | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | Loan | 6 | 9 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 2,777 | $ 2,512 | $ 743 |
Post-Modification Outstanding Recorded Investment | 2,600 | 2,471 | 743 |
Charge-offs | 177 | 41 | |
Specific Reserves | $ 513 | $ 743 | $ 111 |
Commercial and Industrial | Accruing | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | Loan | 2 | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 129 | $ 191 | |
Post-Modification Outstanding Recorded Investment | 129 | 191 | |
Specific Reserves | $ 118 | $ 100 | |
Commercial and Industrial | Non-accruing | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | Loan | 11 | 6 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 8,048 | $ 6,714 | $ 1,246 |
Post-Modification Outstanding Recorded Investment | 6,096 | 4,843 | 759 |
Charge-offs | 1,952 | 1,871 | 487 |
Specific Reserves | $ 1,312 | $ 1,290 | $ 246 |
Residential Real Estate | Accruing | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | Loan | 2 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 191 | $ 114 | $ 149 |
Post-Modification Outstanding Recorded Investment | $ 191 | $ 114 | $ 149 |
Residential Real Estate | Non-accruing | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | Loan | 1 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 104 | $ 67 | |
Post-Modification Outstanding Recorded Investment | $ 104 | $ 67 |
Allowance for Loan and Lease _9
Allowance for Loan and Lease Losses and Reserve for Unfunded Commitments - Summary of Loans Modified as Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Beginning balance | $ 1,813 | $ 1,061 | $ 602 |
Additions | 113 | 37 | 1,017 |
Net payments | (940) | (86) | (144) |
Net transfers from (to) non-accrual | 785 | 801 | (414) |
Ending balance | 1,771 | 1,813 | 1,061 |
Beginning balance | 7,314 | 1,569 | 552 |
Additions | 5,254 | 8,408 | 681 |
Net payments | (2,310) | (1,718) | (78) |
Charge-offs | (673) | (144) | |
Net transfers from (to) accrual | (785) | (801) | 414 |
Ending balance | 8,800 | 7,314 | 1,569 |
Total troubled debt restructurings | $ 10,571 | $ 9,127 | $ 2,630 |
Servicing Assets - Activity for
Servicing Assets - Activity for Servicing Assets and Related Changes in Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Transfers And Servicing [Abstract] | |||
Beginning balance | $ 19,693 | $ 21,400 | $ 21,091 |
Additions, net | 6,417 | 7,562 | 6,250 |
Changes in fair value | (6,639) | (9,269) | (5,941) |
Ending balance | $ 19,471 | $ 19,693 | $ 21,400 |
Servicing Assets - Unpaid Princ
Servicing Assets - Unpaid Principal Balances of Loans Serviced for Others (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loan portfolios serviced for: | ||
Unpaid principal balances of loans serviced | $ 1,351,006 | $ 1,258,099 |
SBA guaranteed loans | ||
Loan portfolios serviced for: | ||
Unpaid principal balances of loans serviced | 1,231,959 | 1,151,915 |
USDA guaranteed loans | ||
Loan portfolios serviced for: | ||
Unpaid principal balances of loans serviced | $ 119,047 | $ 106,184 |
Servicing Assets - Additional I
Servicing Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Changes in fair value of servicing assets | $ (6,639) | $ (9,269) | $ (5,941) |
Loan Servicing Revenue [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Fees and charges | $ 10,695 | $ 10,272 | $ 9,599 |
Other Real Estate Owned - Chang
Other Real Estate Owned - Change in Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Banking And Thrift [Abstract] | |||
Other real estate owned, beginning balance | $ 5,041 | $ 10,626 | $ 16,570 |
Acquisition of OREO through business combination | 2,201 | ||
Net additions to OREO | 5,910 | 2,163 | 6,690 |
Proceeds from sales of OREO | (3,173) | (7,495) | (13,898) |
Gains on sales of OREO | 428 | 383 | 2,147 |
Valuation adjustments | (511) | (636) | (883) |
Other real estate owned, ending balance | $ 9,896 | $ 5,041 | $ 10,626 |
Other Real Estate Owned - Addit
Other Real Estate Owned - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Real Estate [Line Items] | ||||
Foreclosed real estate properties recorded as result of obtaining physical possession of property | $ 9,896,000 | $ 5,041,000 | $ 10,626,000 | $ 16,570,000 |
Residential consumer mortgage loans in process of foreclosure | 2,100,000 | 2,300,000 | ||
Proceeds from sale of internally financed sales of OREO | 183,000 | 444,000 | $ 0 | |
Residential Real Estate | ||||
Real Estate [Line Items] | ||||
Foreclosed real estate properties recorded as result of obtaining physical possession of property | $ 1,500,000 | $ 838,000 |
Premises and Equipment and As_3
Premises and Equipment and Assets Held For Sale - Schedule for Classification of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Premises and equipment | ||
Premises | $ 54,798 | $ 55,112 |
Furniture, fixtures and equipment | 16,987 | 13,593 |
Leasehold improvements | 5,957 | 5,022 |
Total cost | 77,742 | 73,727 |
Less accumulated depreciation and amortization | (26,246) | (22,408) |
Premises and equipment, net | 96,140 | 97,680 |
Net book value of premises, furniture, fixtures, equipment, and leasehold improvements | ||
Premises and equipment | ||
Premises and equipment, net | 51,496 | 51,319 |
Construction in progress | ||
Premises and equipment | ||
Premises and equipment, net | 850 | 830 |
Land | ||
Premises and equipment | ||
Premises and equipment, net | $ 43,794 | $ 45,531 |
Premises and Equipment and As_4
Premises and Equipment and Assets Held For Sale - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($)item | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization of premises and equipment | $ | $ 6,389 | $ 5,579 | $ 5,193 |
Number of branches closure | 2 | 6 | 2 |
Number of other Facilities | 2 |
Premises and Equipment and As_5
Premises and Equipment and Assets Held For Sale - Change in Assets Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |||
Beginning balance | $ 14,489 | $ 9,779 | $ 14,748 |
Transfers in | 2,733 | 9,074 | 3,372 |
Transfers out | (425) | ||
Proceeds from sales | (1,373) | (4,415) | (5,373) |
Internally financed sales | (1,800) | ||
Net gains (losses) on sales | 82 | 1,103 | (217) |
Impairment loss | (569) | (627) | (951) |
Ending balance | $ 15,362 | $ 14,489 | $ 9,779 |
Goodwill, Core Deposit Intang_3
Goodwill, Core Deposit Intangible and Other Intangible Assets - Summary of Changes in Goodwill and Core Deposit Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Goodwill And Intangible Assets [Line Items] | |||
Beginning balance, Goodwill | $ 128,177 | $ 54,562 | $ 51,975 |
Additions | 20,176 | 73,615 | 2,587 |
Ending balance, Goodwill | 148,353 | 128,177 | 54,562 |
Amortization or accretion | (7,737) | (5,629) | (3,074) |
Core Deposits | |||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||
Beginning balance | 30,360 | 16,720 | 19,776 |
Additions | 6,220 | 19,060 | |
Amortization or accretion | (7,469) | (5,420) | (3,056) |
Ending balance | 29,111 | 30,360 | 16,720 |
Accumulated amortization or accretion | $ 26,355 | $ 18,886 | $ 13,466 |
Weighted average remaining amortization or accretion period | 6 years 6 months | 6 years 9 months 18 days | 5 years 7 months 6 days |
Customer Relationships | |||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||
Beginning balance | $ 3,059 | ||
Additions | $ 3,216 | ||
Amortization or accretion | (268) | (157) | |
Ending balance | 2,791 | 3,059 | |
Accumulated amortization or accretion | $ 425 | $ 157 | |
Weighted average remaining amortization or accretion period | 10 years 4 months 24 days | 11 years 4 months 24 days |
Goodwill, Core Deposit Intang_4
Goodwill, Core Deposit Intangible and Other Intangible Assets - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Other intangible assets, net | $ 0 | $ 0 | |
Trademark | |||
Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Other intangible assets, net | $ 36,000 |
Goodwill, Core Deposit Intang_5
Goodwill, Core Deposit Intangible and Other Intangible Assets - Estimated Amortization Expense for Core Deposit Intangible and Other Intangible Assets Recognized (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2020 | $ 7,577 | |
2021 | 7,012 | |
2022 | 6,440 | |
2023 | 4,336 | |
2024 | 2,286 | |
Thereafter | 4,251 | |
Total | $ 31,902 | $ 33,419 |
Income Taxes - Provision for in
Income Taxes - Provision for income taxes (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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax expense: | |||||||||||
Federal | $ 18,976 | $ 1,010 | |||||||||
State and local | 2,199 | $ 1,078 | 1,485 | ||||||||
Total current tax expense | 21,175 | 1,078 | 2,495 | ||||||||
Deferred tax expense (benefit): | |||||||||||
Federal | (3,676) | 11,469 | 13,554 | ||||||||
State and local | 2,794 | 2,460 | 686 | ||||||||
Remeasurement of net deferred tax assets | (760) | 2,364 | |||||||||
Total deferred tax expense (benefit) | (882) | 13,169 | 16,604 | ||||||||
Provision for income taxes | $ 4,497 | $ 5,923 | $ 5,075 | $ 4,798 | $ 6,460 | $ 5,402 | $ 1,064 | $ 1,321 | $ 20,293 | $ 14,247 | $ 19,099 |
Income Taxes - Reconciliation b
Income Taxes - Reconciliation between statutory and effective tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation between statutory U.S. federal income tax rate and effective tax rate | |||
Calculated tax benefit at statutory rate | 21.00% | 21.00% | 35.00% |
Increase (decrease) in income taxes resulting from: | |||
State taxes, net of federal income tax | 5.60% | 7.00% | 6.50% |
Tax exempt income | (0.50%) | (0.50%) | (0.70%) |
Share-based compensation | (0.10%) | (0.90%) | |
Non-deductible expenses | 0.30% | 0.50% | 0.20% |
Remeasurement of net deferred tax assets | (1.40%) | 5.80% | |
Total income tax expense (benefit) | 26.30% | 25.70% | 46.80% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Jul. 01, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax [Line Items] | ||||||
Corporate federal income tax rate | 21.00% | 21.00% | 35.00% | |||
Net income tax expense (benefit) | $ 7,200,000 | $ (760,000) | ||||
Reclassification of certain income tax effects from accumulated other comprehensive income (loss) | (763,000) | |||||
Deferred tax assets, net | $ 38,300,000 | 35,600,000 | ||||
Operating loss carryforwards, limitations on use | Pursuant to Sections 382 and 383 of the Internal Revenue Code, annual use of net operating loss and credit carryforwards may be limited in the event a cumulative change in ownership of more than 50 percent occurs within a threeyear period. | |||||
Cumulative change in ownership Percentage | 50.00% | |||||
Period for cumulative change in ownership | 3 years | |||||
Estimated net operating losses available each year | $ 756,000 | |||||
Oak Park River Forest Bankshares, Inc. | ||||||
Income Tax [Line Items] | ||||||
Increase in deferred tax assets, net | 5,900,000 | |||||
Estimated net operating losses available each year | 781,000 | |||||
Net operating loss carryforwards | 4,300,000 | |||||
ASU 2018-02 | ||||||
Income Tax [Line Items] | ||||||
Reclassification of certain income tax effects from accumulated other comprehensive income (loss) | 763,000 | |||||
State | ||||||
Income Tax [Line Items] | ||||||
Net operating loss carryforwards | $ 307,705,000 | $ 340,999,000 | ||||
Illinois | State | ||||||
Income Tax [Line Items] | ||||||
Corporate income tax rate | 7.00% | 5.25% | ||||
State income tax benefit due to increased value of deferred tax asset related to net loss deduction | $ 4,800,000 |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating losses and tax credits | $ 26,108 | $ 25,851 |
Interest on non-accrual loans | 3,201 | 3,039 |
Allowance for loan losses and loan basis | 24,027 | 15,641 |
Deposits | 42 | 90 |
Other real estate owned | 413 | 393 |
Net unrealized holding losses on securities available-for-sale | 4,622 | |
Net unrealized holding losses on cash flow hedges | 141 | |
Accrued expenses | 3,291 | 3,747 |
Other | 2,225 | 2,075 |
Total deferred tax assets | 59,448 | 55,458 |
Deferred tax liabilities: | ||
Premises and equipment | (1,952) | (3,752) |
Core deposit intangibles | (8,883) | (9,306) |
Servicing assets | (5,422) | (337) |
Trust preferred securities | (2,552) | (2,710) |
Net unrealized holding gain on securities available-for-sale | (804) | |
Net unrealized holding gain on cash flow hedges | (1,839) | |
Other | (1,520) | (1,871) |
Total deferred tax liabilities | (21,133) | (19,815) |
Net deferred tax assets | $ 38,315 | $ 35,643 |
Income Taxes - Operating loss a
Income Taxes - Operating loss and credit carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | $ 14,357 | $ 1,233 |
Illinois | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | $ 307,705 | $ 340,999 |
Income Taxes - Operating loss_2
Income Taxes - Operating loss and credit carryforwards (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Federal | |
Operating loss carryforwards | |
Operating loss carryforwards expiration year | 2030 |
Illinois | |
Operating loss carryforwards | |
Operating loss carryforwards expiration year | 2022 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances - Summary of FHLB Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Banks [Abstract] | ||
Federal Home Loan Bank advances | $ 490,000 | $ 425,000 |
Weighted average cost | 1.70% | 2.56% |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Federal Home Loan Bank Advances [Line Items] | ||
Federal home loan bank, total fixed-rate advances | $ 390,000,000 | |
Federal home loan bank, total variable rate advances | $ 100,000,000 | |
Federal home loan bank advances, Variable interest rate | 1.47% | |
Federal home loan bank variable rate advances, maturity date | 2020-02 | |
Federal home loan bank, required investment conversion ratio | 4.50 | |
Additional borrowing capacity from FHLB | $ 1,400,000,000 | $ 1,300,000,000 |
Federal home loan bank advances maximum borrowing capacity as percentage of total assets | 35.00% | |
Minimum | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal home loan bank advances, Fixed interest rate | 1.74% | |
Federal home loan bank fixed rate advances, maturity date | 2020-01 | |
Maximum | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal home loan bank advances, Fixed interest rate | 1.77% | |
Federal home loan bank fixed rate advances, maturity date | 2020-03 |
Other Borrowings - Summary of O
Other Borrowings - Summary of Other Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | |||
Securities sold under agreements to repurchase | $ 49,638 | $ 34,166 | |
Line of credit | $ 5,700 | ||
Total | $ 49,638 | $ 34,166 |
Other Borrowings - Additional I
Other Borrowings - Additional Information (Details) - USD ($) | Oct. 10, 2019 | Apr. 30, 2019 | May 31, 2019 | Jul. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | Apr. 30, 2017 | Oct. 13, 2016 |
Line Of Credit Facility [Line Items] | |||||||||
Line of credit facility, amount | $ 5,700,000 | ||||||||
Repayment of lines of credit | $ 5,700,000 | $ 16,200,000 | $ 11,335,000 | $ 20,650,000 | |||||
Short-term credit lines available for use, outstanding | $ 0 | $ 0 | |||||||
LIBOR Rate | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Interest rate spread | 2.25% | ||||||||
Ridgestone | Correspondent Bank | Credit agreement | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Line of credit facility, amount | $ 30,000,000 | ||||||||
Ridgestone | Correspondent Bank | Amended Credit Agreement | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Line of credit facility, maturity date | Oct. 10, 2019 | ||||||||
Line of credit facility, revolving credit conversion to non-revolving line of credit, description | In April 2017, the revolving line of credit was amended to a non-revolving line of credit as long as the outstanding balance exceeds $5.0 million. | ||||||||
Line of credit facility, revolving credit conversion to non-revolving line of credit, threshold amount | $ 5,000,000 | ||||||||
Threshold amount for conversion of line of credit into revolving line of credit | 5,000,000 | ||||||||
Revolving line of credit facility, maximum borrowing capacity | $ 5,000,000 | ||||||||
Ridgestone | Correspondent Bank | Amended Credit Agreement | LIBOR Rate | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Interest rate spread | 2.50% | ||||||||
Ridgestone | Correspondent Bank | Amended Credit Agreement | Prime Rate | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Interest rate spread | 0.25% | ||||||||
Ridgestone | Correspondent Bank | Fourth Amendment Revolving Credit Agreement | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Line of credit facility, amount | $ 15,000,000 | $ 0 | $ 0 | ||||||
Line of credit facility, extended maturity date | Oct. 9, 2020 | ||||||||
Line of credit facility, interest rate terms | The amended revolving line of credit bears interest at either LIBOR plus 195 basis points or Prime Rate minus 75 basis points, based on the Company’s election, which is required to be communicated at least three business days prior to the commencement of an interest period. If the Company fails to provide timely notification, the interest rate will be Prime Rate minus 75 basis points. As of December 31, 2019 and 2018, the line of credit had no outstanding balance, therefore an interest rate option has not been selected. | ||||||||
Ridgestone | Correspondent Bank | Fourth Amendment Revolving Credit Agreement | LIBOR Rate | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Interest rate spread | 2.25% | ||||||||
Ridgestone | Correspondent Bank | Fourth Amendment Revolving Credit Agreement | Prime Rate | |||||||||
Line Of Credit Facility [Line Items] | |||||||||
Interest rate spread | 0.50% |
Other Borrowings - Summary of S
Other Borrowings - Summary of Short-term Credit Lines Available for Use (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Reserve Bank of Chicago Discount Window Line | ||
Debt Instrument [Line Items] | ||
Short-term credit lines available for use | $ 547,798 | $ 293,613 |
Available Federal Funds Line | ||
Debt Instrument [Line Items] | ||
Short-term credit lines available for use | $ 115,000 | $ 55,000 |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Non-interest-bearing demand deposits | $ 1,279,641 | $ 1,192,873 |
Interest-bearing checking accounts | 338,185 | 296,339 |
Money market demand accounts | 881,387 | 640,401 |
Other savings | 475,839 | 476,418 |
Time deposits (below $250,000) | 916,723 | 911,603 |
Time deposits ($250,000 and above) | 255,802 | 232,282 |
Total deposits | $ 4,147,577 | $ 3,749,916 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Brokered deposits | $ 41,000,000 | $ 50,000,000 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Time Deposit [Abstract] | ||
2020 | $ 1,091,183 | |
2021 | 60,398 | |
2022 | 12,324 | |
2023 | 6,661 | |
2024 | 1,959 | |
Total | $ 1,172,525 | $ 1,143,885 |
Junior Subordinated Debenture_2
Junior Subordinated Debentures - Junior Subordinated Debentures by Issuance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | ||
Total liability, at par | $ 46,500 | $ 46,500 |
Total liability, at carrying value | 37,334 | 36,768 |
Metropolitan Statutory Trust 1 | ||
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | ||
Total liability, at par | 35,000 | 35,000 |
RidgeStone Capital Trust I | ||
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | ||
Total liability, at par | 1,500 | 1,500 |
First Evanston Bancorp Trust I | ||
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | ||
Total liability, at par | 10,000 | 10,000 |
Junior Subordinated Debentures | ||
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | ||
Discount | $ (9,166) | $ (9,732) |
Junior Subordinated Debentures | Metropolitan Statutory Trust 1 | ||
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | ||
Stated Maturity | Mar. 17, 2034 | |
Contractual Rate | 4.69% | 5.58% |
Junior Subordinated Debentures | Metropolitan Statutory Trust 1 | Three-month LIBOR | ||
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | ||
Interest Rate Spread, Description | Three-month LIBOR | |
Interest Rate Spread | 2.79% | 2.79% |
Junior Subordinated Debentures | RidgeStone Capital Trust I | ||
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | ||
Stated Maturity | Jun. 30, 2033 | |
Contractual Rate | 6.38% | 6.38% |
Junior Subordinated Debentures | RidgeStone Capital Trust I | Five-year LIBOR | ||
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | ||
Interest Rate Spread, Description | Five-year LIBOR | |
Interest Rate Spread | 3.50% | 3.50% |
Junior Subordinated Debentures | First Evanston Bancorp Trust I | ||
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | ||
Stated Maturity | Mar. 15, 2035 | |
Contractual Rate | 3.67% | 4.57% |
Junior Subordinated Debentures | First Evanston Bancorp Trust I | Three-month LIBOR | ||
Shares Subject To Mandatory Redemption By Settlement Terms [Line Items] | ||
Interest Rate Spread, Description | Three-month LIBOR | |
Interest Rate Spread | 1.78% | 1.78% |
Junior Subordinated Debenture_3
Junior Subordinated Debentures - Additional Information (Details) - USD ($) | Feb. 25, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Principal amount | $ 46,500,000 | $ 46,500,000 | ||
Accrued interest payable | 3,677,000 | 3,484,000 | ||
Other non-interest expense | 11,034,000 | 9,501,000 | $ 7,824,000 | |
Metropolitan Statutory Trust 1 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 35,000,000 | $ 35,000,000 | ||
Metropolitan Statutory Trust 1 | Junior Subordinated Debentures | ||||
Debt Instrument [Line Items] | ||||
Contractual rate | 4.69% | 5.58% | ||
Accrued interest payable | $ 71,000 | $ 84,000 | ||
Metropolitan Statutory Trust 1 | Junior Subordinated Debentures | Three-month LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate spread | 2.79% | 2.79% | ||
RidgeStone Capital Trust I | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 1,500,000 | $ 1,500,000 | ||
RidgeStone Capital Trust I | Junior Subordinated Debentures | ||||
Debt Instrument [Line Items] | ||||
Contractual rate | 6.38% | 6.38% | ||
Accrued interest payable | $ 0 | $ 0 | ||
RidgeStone Capital Trust I | Junior Subordinated Debentures | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Other non-interest expense | $ 112,000 | |||
RidgeStone Capital Trust I | Junior Subordinated Debentures | Five-year LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate spread | 3.50% | 3.50% | ||
First Evanston Bancorp Trust I | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 10,000,000 | $ 10,000,000 | ||
First Evanston Bancorp Trust I | Junior Subordinated Debentures | ||||
Debt Instrument [Line Items] | ||||
Contractual rate | 3.67% | 4.57% | ||
Accrued interest payable | $ 17,000 | $ 21,000 | ||
First Evanston Bancorp Trust I | Junior Subordinated Debentures | Three-month LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate spread | 1.78% | 1.78% |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | Jan. 01, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Jun. 14, 2017 |
Employee Benefit Plans | ||||||
Profit sharing contributions | $ 0 | $ 0 | $ 0 | |||
Employer contribution to Plan | $ 2,500,000 | $ 2,100,000 | 1,500,000 | |||
Common Stock | ||||||
Employee Benefit Plans | ||||||
Stock issued under employee stock purchase plans | 26,828 | 8,882 | 35,710 | |||
Employee Stock Purchase Plan | ||||||
Employee Benefit Plans | ||||||
Common stock reserved for sale | 164,290 | 164,290 | 200,000 | |||
Compensation expense | $ 190,000 | $ 66,000 | $ 0 | |||
3% contributed by employees | ||||||
Employee Benefit Plans | ||||||
Employer matching contribution | 100.00% | |||||
Contribution by employees | 3.00% | |||||
2% contributed by employees | ||||||
Employee Benefit Plans | ||||||
Employer matching contribution | 50.00% | |||||
Contribution by employees | 2.00% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Summary of Minimum Annual Rental Commitments for Operating Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 | $ 4,560 |
2021 | 4,106 |
2022 | 2,357 |
2023 | 1,358 |
2024 | 1,225 |
Thereafter | 2,136 |
Total | $ 15,742 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies Liabilities [Line Items] | |||||
Rental expenses | $ 5,800,000 | $ 5,500,000 | $ 4,600,000 | ||
Sublease income | 752,000 | 723,000 | 702,000 | ||
Minimum rental to be received in future on subleases | $ 1,200,000 | ||||
Sublease contract maturity year | 2025 | ||||
Data processing | $ 13,733,000 | $ 18,242,000 | $ 9,539,000 | ||
Fixed rate loan commitments maturity year | 2043 | ||||
Variable rate loan commitments maturity year | 2048 | ||||
Maximum | |||||
Commitments And Contingencies Liabilities [Line Items] | |||||
Commitments to make loans period | 90 days | ||||
Loan commitments fixed interest rate | 19.50% | ||||
Loan commitments variable interest rate | 10.00% | ||||
Minimum | |||||
Commitments And Contingencies Liabilities [Line Items] | |||||
Loan commitments fixed interest rate | 2.50% | ||||
Loan commitments variable interest rate | 2.75% | ||||
Contract termination | |||||
Commitments And Contingencies Liabilities [Line Items] | |||||
Data processing | $ 8,100,000 | $ 8,100,000 | |||
Remaining data processing cost balance | $ 0 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities - Summary of Contract or Notional Amount of Outstanding Loan and Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies Liabilities [Line Items] | ||
Fixed Rate | $ 56,576 | $ 76,081 |
Variable Rate | 973,896 | 963,062 |
Commitments to Extend Credit | ||
Commitments And Contingencies Liabilities [Line Items] | ||
Fixed Rate | 55,852 | 74,099 |
Variable Rate | 908,382 | 928,991 |
Letters of Credit | ||
Commitments And Contingencies Liabilities [Line Items] | ||
Fixed Rate | 724 | 1,982 |
Variable Rate | $ 65,514 | $ 34,071 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Financial Assets And Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | $ 1,186,292 | $ 817,656 | ||
Equity and other securities, at fair value | 8,031 | |||
Servicing assets, at fair value | 19,471 | 19,693 | $ 21,400 | $ 21,091 |
Derivative assets | 7,960 | 10,740 | ||
Derivative liabilities | 8,519 | 4,243 | ||
U.S. Treasury Notes | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 41,830 | 52,667 | ||
U.S. Government Agencies | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 164,950 | 186,498 | ||
Obligations of States, Municipalities, and Political Subdivisions | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 94,832 | 60,233 | ||
Corporate Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 49,330 | 34,173 | ||
Asset-Backed Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 44,317 | |||
Other Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 6,609 | |||
Fair Value, Measurements, Recurring | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Servicing assets, at fair value | 19,471 | 19,693 | ||
Derivative assets | 7,960 | 10,740 | ||
Derivative liabilities | 8,519 | 4,243 | ||
Fair Value, Measurements, Recurring | U.S. Treasury Notes | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 41,830 | 52,667 | ||
Fair Value, Measurements, Recurring | U.S. Government Agencies | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 164,950 | 186,498 | ||
Fair Value, Measurements, Recurring | Obligations of States, Municipalities, and Political Subdivisions | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 94,832 | 60,233 | ||
Fair Value, Measurements, Recurring | Mortgage-Backed Securities; Residential | Agency | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 490,236 | 272,963 | ||
Fair Value, Measurements, Recurring | Mortgage-Backed Securities; Residential | Non-Agency | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 109,822 | 83,621 | ||
Fair Value, Measurements, Recurring | Mortgage-Backed Securities; Commercial | Agency | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 159,701 | 90,434 | ||
Fair Value, Measurements, Recurring | Mortgage-Backed Securities; Commercial | Non-Agency | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 31,274 | 30,458 | ||
Fair Value, Measurements, Recurring | Corporate Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 49,330 | 34,173 | ||
Fair Value, Measurements, Recurring | Asset-Backed Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 44,317 | |||
Fair Value, Measurements, Recurring | Other Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 6,609 | |||
Fair Value, Measurements, Recurring | Mutual Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity and other securities, at fair value | 2,952 | |||
Fair Value, Measurements, Recurring | Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity and other securities, at fair value | 5,079 | |||
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury Notes | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 41,830 | 52,667 | ||
Fair Value, Measurements, Recurring | Level 1 | Other Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 2,844 | |||
Fair Value, Measurements, Recurring | Level 1 | Mutual Funds | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity and other securities, at fair value | 2,952 | |||
Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Derivative assets | 7,960 | 10,740 | ||
Derivative liabilities | 8,519 | 4,243 | ||
Fair Value, Measurements, Recurring | Level 2 | U.S. Government Agencies | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 164,950 | 186,498 | ||
Fair Value, Measurements, Recurring | Level 2 | Obligations of States, Municipalities, and Political Subdivisions | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 94,832 | 60,233 | ||
Fair Value, Measurements, Recurring | Level 2 | Mortgage-Backed Securities; Residential | Agency | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 490,236 | 272,963 | ||
Fair Value, Measurements, Recurring | Level 2 | Mortgage-Backed Securities; Residential | Non-Agency | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 109,822 | 83,621 | ||
Fair Value, Measurements, Recurring | Level 2 | Mortgage-Backed Securities; Commercial | Agency | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 159,701 | 90,434 | ||
Fair Value, Measurements, Recurring | Level 2 | Mortgage-Backed Securities; Commercial | Non-Agency | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 31,274 | 30,458 | ||
Fair Value, Measurements, Recurring | Level 2 | Corporate Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 49,330 | 34,173 | ||
Fair Value, Measurements, Recurring | Level 2 | Asset-Backed Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 44,317 | |||
Fair Value, Measurements, Recurring | Level 2 | Other Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 3,074 | |||
Fair Value, Measurements, Recurring | Level 2 | Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity and other securities, at fair value | 4,379 | |||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Servicing assets, at fair value | 19,471 | 19,693 | ||
Fair Value, Measurements, Recurring | Level 3 | Obligations of States, Municipalities, and Political Subdivisions | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | 195 | |||
Fair Value, Measurements, Recurring | Level 3 | Other Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Securities available-for-sale, at fair value | $ 691 | |||
Fair Value, Measurements, Recurring | Level 3 | Equity Securities | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Equity and other securities, at fair value | $ 700 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Fair value, assets, level 1 to level 2 transfers, amount | $ 0 | $ 0 |
Fair value, assets, level 2 to level 1 transfers, amount | 0 | 0 |
Fair value, liabilities, level 1 to level 2 transfers, amount | 0 | 0 |
Fair value, liabilities, level 2 to level 1 transfers, amount | 0 | 0 |
Fair value, equity, level 1 to level 2 transfers, amount | 0 | 0 |
Fair value, equity, level 2 to level 1 transfers, amount | $ 0 | $ 0 |
Fair Value Measurement - Summ_2
Fair Value Measurement - Summary of Financial Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investment Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Balance, beginning of period | $ 886 | $ 1,052 |
Acquired assets at fair value | 314 | |
Maturities | (195) | (494) |
Amortization | 5 | |
Change in unrealized gain | 9 | |
Change in fair value | 9 | |
Balance, end of period | 700 | 886 |
Servicing Assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Balance, beginning of period | 19,693 | 21,400 |
Additions, net | 6,417 | 7,562 |
Change in fair value | (6,639) | (9,269) |
Balance, end of period | $ 19,471 | $ 19,693 |
Fair Value Measurement - Summ_3
Fair Value Measurement - Summary of Unobservable Inputs Used in Fair Value Measurements on Recurring Basis Categorized Within Level 3 of Fair Value Hierarchy (Details) - Fair Value, Measurements, Recurring - Level 3 | 12 Months Ended |
Dec. 31, 2019 | |
Single Issuer Trust Preferred | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impact to Valuation from an Increased or Higher Input Value | Decrease |
Debt Instrument, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Debt Instrument, Measurement Input [Extensible List] | us-gaap:MeasurementInputDiscountRateMember |
Single Issuer Trust Preferred | Minimum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable Inputs | 0.051 |
Single Issuer Trust Preferred | Maximum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable Inputs | 0.064 |
Single Issuer Trust Preferred | Weighted Average | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable Inputs | 0.056 |
Servicing Assets | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Servicing Asset, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Servicing Assets | Prepayment Speeds | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impact to Valuation from an Increased or Higher Input Value | Decrease |
Servicing Assets | Prepayment Speeds | Minimum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable Inputs | 0.029 |
Servicing Assets | Prepayment Speeds | Maximum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable Inputs | 0.249 |
Servicing Assets | Prepayment Speeds | Weighted Average | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable Inputs | 0.147 |
Servicing Assets | Discount Rate | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impact to Valuation from an Increased or Higher Input Value | Decrease |
Servicing Assets | Discount Rate | Minimum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable Inputs | 0.056 |
Servicing Assets | Discount Rate | Maximum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable Inputs | 0.321 |
Servicing Assets | Discount Rate | Weighted Average | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Unobservable Inputs | 0.125 |
Servicing Assets | Expected Weighted Average Loan life | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impact to Valuation from an Increased or Higher Input Value | Increase |
Servicing Assets | Expected Weighted Average Loan life | Minimum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Expected weighted average loan life | 1 month 6 days |
Servicing Assets | Expected Weighted Average Loan life | Maximum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Expected weighted average loan life | 8 years 10 months 24 days |
Servicing Assets | Expected Weighted Average Loan life | Weighted Average | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Expected weighted average loan life | 4 years 3 months 18 days |
Fair Value Measurement - Summ_4
Fair Value Measurement - Summary of Assets Measured at Fair Value on Non-recurring Basis, Excluding Acquired Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commercial Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Assets, Fair Value | $ 23,782 | $ 9,792 |
Residential Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Assets, Fair Value | 2,274 | 2,076 |
Construction, Land Development, and Other Land | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Assets, Fair Value | 2,644 | |
Commercial and Industrial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Assets, Fair Value | 29,351 | 17,397 |
Other Real Estate Owned | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Assets, Fair Value | 9,896 | 5,314 |
Level 3 | Commercial Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Assets, Fair Value | 23,782 | 9,792 |
Level 3 | Residential Real Estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Assets, Fair Value | 2,274 | 2,076 |
Level 3 | Construction, Land Development, and Other Land | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Assets, Fair Value | 2,644 | |
Level 3 | Commercial and Industrial | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Assets, Fair Value | 29,351 | 17,397 |
Level 3 | Other Real Estate Owned | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Assets, Fair Value | 9,896 | 5,314 |
Assets Held For Sale | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Assets, Fair Value | 15,362 | 14,489 |
Assets Held For Sale | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Assets, Fair Value | $ 15,362 | $ 14,489 |
Fair Value Measurement - Summ_5
Fair Value Measurement - Summary of Estimated Fair Values of Financial Instruments and Levels Within Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2018 |
Financial assets | |||
Cash and due from banks | $ 48,228 | $ 30,190 | |
Interest bearing deposits with other banks | 32,509 | 91,670 | |
Securities held-to-maturity, fair value | 4,498 | 97,739 | |
Restricted stock, at cost | 22,127 | 19,202 | |
Loans held for sale | 11,732 | 19,827 | |
Loans and lease receivables, net (less impaired loans at fair value) | 3,753,725 | 3,476,425 | |
Accrued interest receivable | 13,283 | 10,863 | |
Financial liabilities | |||
Line of credit | $ 5,700 | ||
Federal Home Loan Bank advances | 490,000 | 425,000 | |
Securities sold under agreements to repurchase | 49,638 | 34,166 | |
Junior subordinated debentures issued to capital trusts, net | 37,334 | 36,768 | |
Level 1 | Carrying Amount | |||
Financial assets | |||
Cash and due from banks | 48,228 | 30,190 | |
Level 1 | Estimated Fair Value | |||
Financial assets | |||
Cash and due from banks | 48,228 | 30,190 | |
Level 2 | Carrying Amount | |||
Financial assets | |||
Interest bearing deposits with other banks | 32,509 | 91,670 | |
Securities held-to-maturity, fair value | 4,412 | 99,266 | |
Restricted stock, at cost | 22,127 | 19,202 | |
Financial liabilities | |||
Non-interest-bearing deposits | 1,279,641 | 1,192,873 | |
Interest-bearing deposits | 2,867,936 | 2,557,043 | |
Accrued interest payable | 3,677 | 3,484 | |
Federal Home Loan Bank advances | 490,000 | 425,000 | |
Securities sold under agreements to repurchase | 49,638 | 34,166 | |
Level 2 | Estimated Fair Value | |||
Financial assets | |||
Interest bearing deposits with other banks | 32,509 | 91,670 | |
Securities held-to-maturity, fair value | 4,498 | 97,739 | |
Restricted stock, at cost | 22,127 | 19,202 | |
Financial liabilities | |||
Non-interest-bearing deposits | 1,279,641 | 1,192,873 | |
Interest-bearing deposits | 2,873,380 | 2,554,329 | |
Accrued interest payable | 3,677 | 3,484 | |
Federal Home Loan Bank advances | 490,000 | 425,000 | |
Securities sold under agreements to repurchase | 49,638 | 34,166 | |
Level 3 | Carrying Amount | |||
Financial assets | |||
Loans held for sale | 11,732 | 19,827 | |
Loans and lease receivables, net (less impaired loans at fair value) | 3,695,674 | 3,447,160 | |
Accrued interest receivable | 13,283 | 10,863 | |
Financial liabilities | |||
Junior subordinated debentures issued to capital trusts, net | 37,334 | 36,768 | |
Level 3 | Estimated Fair Value | |||
Financial assets | |||
Loans held for sale | 12,935 | 21,654 | |
Loans and lease receivables, net (less impaired loans at fair value) | 3,661,724 | 3,407,652 | |
Accrued interest receivable | 13,283 | 10,863 | |
Financial liabilities | |||
Junior subordinated debentures issued to capital trusts, net | $ 42,881 | $ 42,351 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) | May 15, 2019 | Apr. 30, 2019 | Oct. 03, 2017 | Jul. 06, 2017 | Feb. 29, 2020 | Oct. 31, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Common stock, voting par value | $ 0.01 | $ 0.01 | ||||||||||
Proceeds from the exercise of stock options | $ 3,146,000 | $ 2,340,000 | ||||||||||
Oak Park River Forest Bankshares, Inc. | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Consideration paid in cash | $ 4,200,000 | $ 6,163,000 | ||||||||||
Business combination conversion of outstanding options | 35,870 | |||||||||||
Performance-based Restricted Shares | Subsequent Event | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Shares of restricted voting common stock granted | 31,928 | |||||||||||
Period for number of shares earned under return on average assets | 3 years | |||||||||||
Performance Options Grants | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Options vested | 414,894 | |||||||||||
Common Stock | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Issuance of common stock in connection with restricted stock awards, shares | 180,664 | 129,057 | 70,398 | |||||||||
Number of options exercised | 241,211 | 205,152 | ||||||||||
Common Stock | Restricted Shares | Subsequent Event | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Shares of restricted voting common stock granted | 172,660 | |||||||||||
Common stock, voting par value | $ 0.01 | |||||||||||
Common Stock | Restricted Shares | Each Anniversary of Grant Date Over Four Years | Subsequent Event | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Award vesting period | 4 years | |||||||||||
Shares vest on grant date | 101,946 | |||||||||||
Common Stock | Restricted Shares | Each Anniversary of Grant Date Vest Over Three Years | Subsequent Event | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Award vesting period | 3 years | |||||||||||
Shares vest on grant date | 38,786 | |||||||||||
Omnibus Plan | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Number of common stock reserved for issuance | 1,550,000 | |||||||||||
Number of common shares available for future grants | 1,169,881 | |||||||||||
Omnibus Plan | Restricted Shares | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Award vesting period | 4 years | |||||||||||
Shares of restricted voting common stock granted | 210,622 | |||||||||||
Restricted shares vested | 48,491 | 2,975 | 0 | |||||||||
Fair value of restricted shares, vested | $ 900,000 | $ 62,000 | ||||||||||
Restricted shares vested | 48,491 | 2,975 | 0 | |||||||||
Fair value of unvested restricted stock awards | $ 6,400,000 | |||||||||||
Number of shares outstanding | 328,653 | 196,480 | ||||||||||
Omnibus Plan | Performance-based Restricted Shares | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Shares of restricted voting common stock granted | 20,975 | 11,165 | ||||||||||
Period for number of shares earned under return on average assets | 3 years | 3 years | ||||||||||
Minimum target percentage in assets of peer group consisting publicly-traded bank holding companies | 50.00% | |||||||||||
Maximum target percentage in assets of peer group consisting publicly-traded bank holding companies | 200.00% | |||||||||||
Omnibus Plan | Performance-based Restricted Shares | Threshold performance | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Percentage of target number of shares to be earned | 25.00% | |||||||||||
Omnibus Plan | Performance-based Restricted Shares | 50th Percentile Performance | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Percentage of target number of shares to be earned | 100.00% | |||||||||||
Omnibus Plan | Performance-based Restricted Shares | 75th Percentile Performance | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Percentage of target number of shares to be earned | 125.00% | |||||||||||
Omnibus Plan | Common Stock | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Issuance of common stock in connection with restricted stock awards, shares | 58,900 | 11,898 | ||||||||||
Omnibus Plan | Common Stock | Restricted Shares | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Shares of restricted voting common stock granted | 189,647 | 131,157 | ||||||||||
Common stock, voting par value | $ 0.01 | $ 0.01 | ||||||||||
Shares vested | 4,571 | |||||||||||
Omnibus Plan | Common Stock | Restricted Shares | Each Anniversary of Grant Date Over Four Years | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Award vesting period | 4 years | 4 years | ||||||||||
Shares vest on grant date | 111,823 | 102,559 | ||||||||||
Omnibus Plan | Common Stock | Restricted Shares | Each Anniversary of Grant Date Vest Over Three Years | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Award vesting period | 3 years | 3 years | ||||||||||
Shares vest on grant date | 72,570 | 15,165 | ||||||||||
Omnibus Plan | Common Stock | Restricted Shares | First Anniversary of Grant Date | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Shares vest on grant date | 683 | 2,268 | ||||||||||
MBG Plan | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Number of options granted | 0 | |||||||||||
Number of options exercised | 0 | |||||||||||
BYB Plan | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Number of common shares available for future grants | 0 | |||||||||||
Number of options granted | 0 | 212,400 | 1,634,568 | |||||||||
Number of options exercised | 127,997 | 148,748 | 0 | |||||||||
Number of shares outstanding | 1,410,075 | 1,598,872 | ||||||||||
Options vested | 17,500 | |||||||||||
Proceeds from the exercise of stock options | $ 1,900,000 | $ 1,700,000 | ||||||||||
Tax benefit from exercise of stock options | $ 145,000 | $ 449,000 | ||||||||||
BYB Plan | Maximum | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Number of common shares available for future grants | 2,476,122 | |||||||||||
BYB Plan | Time Options Grants | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Award contractual term | 10 years | |||||||||||
BYB Plan | Time Options Grants | Maximum | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Award vesting period | 5 years | |||||||||||
BYB Plan | Time Options Grants | Minimum | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Award vesting period | 1 year | |||||||||||
BYB Plan | Performance Options Grants | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Award contractual term | 10 years | |||||||||||
BYB Plan | Performance Options Grants | Maximum | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Award vesting period | 5 years | |||||||||||
BYB Plan | Performance Options Grants | Minimum | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Award vesting period | 1 year | |||||||||||
FEB Plan | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Number of options exercised | 113,214 | 56,404 | ||||||||||
Number of shares outstanding | 511,169 | 624,383 | ||||||||||
Proceeds from the exercise of stock options | $ 1.3 | $ 601,000 | ||||||||||
Tax benefit from exercise of stock options | $ 253,000 | $ 168,000 | ||||||||||
Conversion calculation percentage | 472.50% | |||||||||||
FEB Plan | Restricted Shares | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Number of shares outstanding | 0 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Changes in Restricted Shares (Details) - Omnibus Plan - Restricted Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares, beginning balance | 196,480 | ||
Number of shares, granted | 210,622 | ||
Number of shares, vested | (48,491) | (2,975) | 0 |
Number of shares, forfeited | (29,958) | ||
Number of shares, ending balance | 328,653 | 196,480 | |
Weighted average grant date fair value, beginning balance | $ 21.66 | ||
Weighted average grant date fair value, granted | 18.68 | ||
Weighted average grant date fair value, vested | 21.62 | ||
Weighted average grant date fair value, forfeited | 19.73 | ||
Weighted average grant date fair value, ending balance | $ 19.94 | $ 21.66 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Stock Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation (benefit) - stock options | $ (106) | $ 458 | $ 1,294 |
Income tax benefit (expense) | (29) | 127 | 521 |
Unrecognized compensation expense | $ 7 | $ 146 | $ 729 |
Weighted-average amortization period remaining | 3 months 18 days | 1 year 1 month 6 days | 1 year 2 months 12 days |
Restricted Shares | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total share-based compensation - restricted stock | $ 1,965 | $ 958 | $ 203 |
Income tax benefit | 547 | 267 | 83 |
Unrecognized compensation expense | $ 4,616 | $ 3,167 | $ 1,227 |
Weighted-average amortization period remaining | 2 years 7 months 6 days | 2 years 10 months 24 days | 2 years 9 months 18 days |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary Activity in shares Subjected to Options and Weighted Average Exercise Prices (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
BYB Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of Shares, Beginning balance | 1,598,872 | ||||
Number of Shares, Granted | 0 | 212,400 | 1,634,568 | ||
Number of Shares, Exercised | (127,997) | (148,748) | 0 | ||
Number of Shares, Forfeited | (60,800) | ||||
Number of Shares, Ending balance | 1,410,075 | 1,598,872 | |||
Number of Shares, Exercisable | 1,390,075 | ||||
Weighted Average Exercise Price, Beginning balance | $ 11.84 | ||||
Weighted Average Exercise Price, Exercised | 14.71 | ||||
Weighted Average Exercise Price, Forfeited | 16.25 | ||||
Weighted Average Exercise Price, Ending balance | 11.38 | $ 11.84 | |||
Weighted Average Exercise Price, Exercisable | $ 11.31 | ||||
Intrinsic Value, Outstanding | $ 11,542 | $ 7,713 | |||
Intrinsic Value, Exercised | 521 | ||||
Intrinsic Value, Exercisable | $ 11,475 | ||||
Weighted Average Remaining Contractual Term (in Years) | 5 years 4 months 24 days | 6 years 7 months 6 days | |||
Weighted Average Remaining Contractual Term (in Years), Exercisable | 5 years 4 months 24 days | ||||
FEB Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of Shares, Beginning balance | 624,383 | ||||
Number of Shares, Exercised | (113,214) | (56,404) | |||
Number of Shares, Ending balance | 511,169 | 624,383 | |||
Number of Shares, Exercisable | 511,169 | ||||
Weighted Average Exercise Price, Beginning balance | $ 11.31 | ||||
Weighted Average Exercise Price, Exercised | 11.17 | ||||
Weighted Average Exercise Price, Ending balance | 11.35 | $ 11.31 | |||
Weighted Average Exercise Price, Exercisable | $ 11.35 | ||||
Intrinsic Value, Outstanding | $ 4,204 | $ 3,339 | |||
Intrinsic Value, Exercised | 909 | ||||
Intrinsic Value, Exercisable | $ 4,204 | ||||
Weighted Average Remaining Contractual Term (in Years) | 4 years 4 months 24 days | 5 years 2 months 12 days | |||
Weighted Average Remaining Contractual Term (in Years), Exercisable | 4 years 4 months 24 days |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transactions [Abstract] | ||
Receivables outstanding from related parties | $ 0 | $ 0 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total capital to risk weighted assets: | ||
Total capital to risk weighted assets, Actual Amount | $ 627,573 | $ 551,079 |
Total capital to risk weighted assets, Actual Ratio ( as a percentage) | 14.43% | 13.99% |
Total capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Amount | $ 347,835 | $ 315,093 |
Total capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) | 8.00% | 8.00% |
Tier 1 capital to risk weighted assets: | ||
Tier 1 capital to risk weighted assets, Actual Amount | $ 594,477 | $ 523,808 |
Tier 1 capital to risk weighted assets, Actual Ratio ( as a percentage) | 13.67% | 13.30% |
Tier 1 capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Amount | $ 260,876 | $ 236,320 |
Tier 1 capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) | 6.00% | 6.00% |
Common Equity Tier 1 (CET1) to risk weighted assets: | ||
Common Equity Tier 1 (CET1) to risk weighted, Actual Amount | $ 537,539 | $ 466,870 |
Common Equity Tier 1 (CET1) to risk weighted, Actual Ratio ( as a percentage) | 12.36% | 11.85% |
Common Equity Tier 1 (CET1) to risk weighted, Minimum Amount Required for Adequately Capitalized Amount | $ 195,657 | $ 177,240 |
Common Equity Tier 1 (CET1) to risk weighted, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) | 4.50% | 4.50% |
Tier 1 capital to average assets: | ||
Tier 1 capital to average, Actual Amount | $ 594,477 | $ 523,808 |
Tier 1 capital to average, Actual Ratio ( as a percentage) | 11.39% | 11.05% |
Tier 1 capital to average, Minimum Amount Required for Adequately Capitalized Amount | $ 208,771 | $ 189,587 |
Tier 1 capital to average, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) | 4.00% | 4.00% |
Bank | ||
Total capital to risk weighted assets: | ||
Total capital to risk weighted assets, Actual Amount | $ 602,684 | $ 528,329 |
Total capital to risk weighted assets, Actual Ratio ( as a percentage) | 13.87% | 13.40% |
Total capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Amount | $ 347,564 | $ 315,455 |
Total capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) | 8.00% | 8.00% |
Total capital to risk weighted assets, Minimum Amount To Be Well Capitalized Amount | $ 434,454 | $ 394,318 |
Total capital to risk weighted assets, Minimum Amount To Be Well Capitalized Ratio (as a percentage) | 10.00% | 10.00% |
Tier 1 capital to risk weighted assets: | ||
Tier 1 capital to risk weighted assets, Actual Amount | $ 569,588 | $ 501,058 |
Tier 1 capital to risk weighted assets, Actual Ratio ( as a percentage) | 13.11% | 12.71% |
Tier 1 capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Amount | $ 260,673 | $ 236,591 |
Tier 1 capital to risk weighted assets, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) | 6.00% | 6.00% |
Tier 1 capital to risk weighted assets, Minimum Amount To Be Well Capitalized Amount | $ 347,564 | $ 315,455 |
Tier 1 capital to risk weighted assets, Minimum Amount To Be Well Capitalized Ratio (asa percentage) | 8.00% | 8.00% |
Common Equity Tier 1 (CET1) to risk weighted assets: | ||
Common Equity Tier 1 (CET1) to risk weighted, Actual Amount | $ 569,588 | $ 501,058 |
Common Equity Tier 1 (CET1) to risk weighted, Actual Ratio ( as a percentage) | 13.11% | 12.71% |
Common Equity Tier 1 (CET1) to risk weighted, Minimum Amount Required for Adequately Capitalized Amount | $ 195,504 | $ 177,443 |
Common Equity Tier 1 (CET1) to risk weighted, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) | 4.50% | 4.50% |
Common Equity Tier 1 (CET1) to risk weighted, Minimum Amount To Be Well Capitalized Amount | $ 282,395 | $ 256,307 |
Common Equity Tier 1 (CET1) to risk weighted, Minimum Amount To Be Well Capitalized Ratio (as a percentage) | 6.50% | 6.50% |
Tier 1 capital to average assets: | ||
Tier 1 capital to average, Actual Amount | $ 569,588 | $ 501,058 |
Tier 1 capital to average, Actual Ratio ( as a percentage) | 10.92% | 10.56% |
Tier 1 capital to average, Minimum Amount Required for Adequately Capitalized Amount | $ 208,647 | $ 189,797 |
Tier 1 capital to average, Minimum Amount Required for Adequately Capitalized Ratio ( as a percentage) | 4.00% | 4.00% |
Tier 1 capital to average, Minimum Amount To Be Well Capitalized Amount | $ 260,809 | $ 237,246 |
Tier 1 capital to average, Minimum Amount To Be Well Capitalized Ratio ( as a percentage) | 5.00% | 5.00% |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Bank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Proceeds from Dividends Received | $ 0 | |
Bank | Trust Preferred Securities Interest and Preferred Dividends | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Proceeds from Dividends Received | $ 13,500,000 | $ 2,900,000 |
Federal Deposit Corporation And Federal Reserve Board | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital conservation buffer above the minimum capital requirements | 6.43% | |
Federal Deposit Corporation And Federal Reserve Board | Bank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital conservation buffer above the minimum capital requirements | 5.87% | |
Federal Deposit Corporation And Federal Reserve Board | Rules Phased in beginning January 2016 | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Additional capital conservation buffer requirement subsequent years ratio | 2.50% |
Derivative Instruments and He_3
Derivative Instruments and Hedge Activities - Summary of Derivative Financial Instruments and Classification on Consolidated Statements of Financial Condition (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives Fair Value [Line Items] | ||
Notional Amount | $ 341,358,000 | $ 548,969,000 |
Other Assets | 7,960,000 | 10,740,000 |
Other Liabilities | 8,519,000 | 4,243,000 |
Other Interest Rate Derivatives | ||
Derivatives Fair Value [Line Items] | ||
Notional Amount | 332,056,000 | |
Other Assets | 7,960,000 | |
Other Liabilities | 8,507,000 | |
Derivatives Designated as Hedging Instruments | Interest Rate Swaps | Cash Flow Hedges | ||
Derivatives Fair Value [Line Items] | ||
Notional Amount | 0 | 250,000,000 |
Other Assets | 6,699,000 | |
Derivatives Not Designated As Hedging Instruments | Other Credit Derivatives | ||
Derivatives Fair Value [Line Items] | ||
Notional Amount | 9,302,000 | 4,424,000 |
Other Liabilities | 12,000 | 6,000 |
Derivatives Not Designated As Hedging Instruments | Other Interest Rate Derivatives | ||
Derivatives Fair Value [Line Items] | ||
Notional Amount | 332,056,000 | 294,545,000 |
Other Assets | 7,960,000 | 4,041,000 |
Other Liabilities | $ 8,507,000 | $ 4,237,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedge Activities - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||||
Derivative notional amount | $ 341,358,000 | $ 548,969,000 | ||
Unrealized gain (loss) to be reclassified as an decrease to interest expense during the next twelve months | (85,000) | |||
Fair value of derivatives net liability position | 8,500,000 | |||
Collateral amount posted | 8,500,000 | |||
Settlement obligation termination value | 8,500,000 | |||
Interest Rate Swaps | Interest Expense | ||||
Derivative [Line Items] | ||||
Increase (decrease) in FHLB expense | (1,600,000) | (1,300,000) | $ 579,000 | |
Other Interest Rate Derivatives | ||||
Derivative [Line Items] | ||||
Derivative notional amount | $ 332,056,000 | |||
Derivative maturity date, start year | Apr. 30, 2020 | |||
Derivative maturity date, end year | Jan. 31, 2030 | |||
Derivative instruments transaction fees | $ 1,200,000 | 1,700,000 | $ 393,000 | |
Other Credit Derivatives | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 9,300,000 | 4,400,000 | ||
Derivatives Designated as Hedging Instruments | Interest Rate Swaps | Cash Flow Hedges | ||||
Derivative [Line Items] | ||||
Derivative notional amount | 0 | 250,000,000 | ||
Termination of designated as cash flow hedges to reduce interest risk | $ 250,000,000 | |||
Transaction, net of tax | $ 383,000 | |||
Remaining balance in accumulated other comprehensive income | $ 366,000 | |||
Federal Home Loan Bank Advances | Derivatives Designated as Hedging Instruments | Interest Rate Swaps | Cash Flow Hedges | ||||
Derivative [Line Items] | ||||
Derivative notional amount | $ 250,000,000 |
Derivative Instruments and He_5
Derivative Instruments and Hedge Activities - Summary of Net Gains (Losses) Recorded in Accumulated Other Comprehensive Income (Loss) and Consolidated Statements of Operations Relating to Cash Flow Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI | $ (5,483) | $ 2,960 | $ 688 |
Interest Rate Swaps | |||
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI | (5,483) | 2,960 | |
Amount of Gain Reclassified from OCI to Income as a Decrease to Interest Expense | $ 1,626 | $ 1,348 |
Derivative Instruments and He_6
Derivative Instruments and Hedge Activities - Summary of Other Interest Rate Derivatives (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Notional Amount | $ 341,358,000 | $ 548,969,000 |
Derivative assets fair value | 7,960,000 | 10,740,000 |
Derivative liabilities fair value | 8,519,000 | $ 4,243,000 |
Other Interest Rate Derivatives | ||
Derivative [Line Items] | ||
Notional Amount | 332,056,000 | |
Derivative assets fair value | 7,960,000 | |
Derivative liabilities fair value | $ 8,507,000 | |
Weighted average pay rates | 4.63% | |
Weighted average receive rates | 3.94% | |
Weighted average maturity | 6 years 6 months |
Derivative Instruments and He_7
Derivative Instruments and Hedge Activities - Summary of Amounts Included in Non-Interest Income in Consolidated Statements of Operations Relating to Derivative Instruments not Designated in Hedging Relationship (Details) - Non-Interest Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Amounts relating to derivative instruments, not designated in hedging relationship | $ 284 | $ 138 | $ 44 |
Other Interest Rate Derivatives | |||
Derivative [Line Items] | |||
Amounts relating to derivative instruments, not designated in hedging relationship | 351 | 192 | $ 44 |
Other Credit Derivatives | |||
Derivative [Line Items] | |||
Amounts relating to derivative instruments, not designated in hedging relationship | $ 67 | $ 54 |
Derivative Instruments and He_8
Derivative Instruments and Hedge Activities - Summary of Company's Interest Rate Derivative and Offsetting Positions (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Gross amounts recognized | $ 7,960 | $ 10,740 |
Net amount presented in the Consolidated Statements of Financial Condition | 7,960 | 10,740 |
Gross amounts not offset in the Consolidated Statements of Financial Condition | ||
Offsetting derivative positions | (1) | (2,823) |
Collateral posted | (7,959) | (7,917) |
Gross amounts recognized | 8,519 | 4,243 |
Net amount presented in the Consolidated Statements of Financial Condition | 8,519 | 4,243 |
Gross amounts not offset in the Consolidated Statements of Financial Condition | ||
Offsetting derivative positions | (1) | (2,823) |
Collateral posted | $ (8,518) | (1,317) |
Net credit exposure | $ 103 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Statements - Statements of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | |||||
Other assets | $ 29,136 | $ 32,034 | |||
Total assets | 5,521,809 | 4,942,574 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
Line of credit | $ 5,700 | ||||
Junior subordinated debentures issued to capital trusts, net | 37,334 | 36,768 | |||
Accrued expenses and other liabilities | 43,468 | 42,568 | |||
Stockholders' equity | 750,115 | 650,672 | $ 458,578 | $ 382,658 | |
Total liabilities and stockholders’ equity | 5,521,809 | 4,942,574 | |||
Company | |||||
ASSETS | |||||
Cash | 13,370 | 18,242 | |||
Investment in banking subsidiary | 769,797 | 667,236 | |||
Other assets | 5,824 | 3,067 | |||
Total assets | 788,991 | 688,545 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
Junior subordinated debentures issued to capital trusts, net | 37,334 | 36,768 | |||
Accrued expenses and other liabilities | 1,542 | 1,105 | |||
Stockholders' equity | 750,115 | 650,672 | |||
Total liabilities and stockholders’ equity | $ 788,991 | $ 688,545 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Statements - Statements of Financial Operations (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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME | |||||||||||
Other noninterest income | $ 4,204 | $ 5,505 | $ 2,201 | ||||||||
EXPENSES | |||||||||||
Interest expense | $ 12,001 | $ 13,191 | $ 12,312 | $ 11,025 | $ 9,634 | $ 8,480 | $ 5,785 | $ 4,447 | 48,529 | 28,346 | 13,891 |
Other non-interest expense | 11,034 | 9,501 | 7,824 | ||||||||
Benefit for income taxes | 4,497 | 5,923 | 5,075 | 4,798 | 6,460 | 5,402 | 1,064 | 1,321 | 20,293 | 14,247 | 19,099 |
NET INCOME | $ 15,852 | $ 15,342 | $ 13,211 | $ 12,597 | $ 17,121 | $ 14,536 | $ 2,768 | $ 6,768 | 57,002 | 41,193 | 21,695 |
Company | |||||||||||
INCOME | |||||||||||
Dividends from subsidiary | 13,500 | 2,900 | 2,800 | ||||||||
Other noninterest income | 9 | ||||||||||
Total income | 13,500 | 2,900 | 2,809 | ||||||||
EXPENSES | |||||||||||
Interest expense | 2,984 | 2,716 | 2,782 | ||||||||
Other non-interest expense | 1,768 | 3,214 | 1,804 | ||||||||
Total expenses | 4,752 | 5,930 | 4,586 | ||||||||
Income (loss) before provision for income taxes and equity in undistributed income of subsidiary | 8,748 | (3,030) | (1,777) | ||||||||
Benefit for income taxes | (1,323) | (1,549) | (1,166) | ||||||||
Income (loss) before equity in undistributed income of subsidiary | 10,071 | (1,481) | (611) | ||||||||
Equity in undistributed income of subsidiary | 46,931 | 42,674 | 22,306 | ||||||||
NET INCOME | $ 57,002 | $ 41,193 | $ 21,695 |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Statements - Statements of Financial Cash Flow (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
May 31, 2019 | Jul. 31, 2017 | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||
Net income | $ 15,852 | $ 15,342 | $ 13,211 | $ 12,597 | $ 17,121 | $ 14,536 | $ 2,768 | $ 6,768 | $ 57,002 | $ 41,193 | $ 21,695 | ||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||||
Share-based compensation expense | 1,673 | 1,514 | 1,497 | ||||||||||
Accretion of junior subordinated debentures discount | 566 | 624 | 721 | ||||||||||
Net cash provided by operating activities | 29,314 | 79,935 | 26,853 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||
Net cash used in investing activities | (250,562) | (369,399) | (61,635) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||
Proceeds from revolving line of credit | 5,680 | ||||||||||||
Repayments of revolving line of credit | $ (5,700) | $ (16,200) | (11,335) | (20,650) | |||||||||
Dividends paid on preferred stock | (783) | (783) | (11,277) | ||||||||||
Cash paid in lieu of fractional shares | (2) | ||||||||||||
Proceeds from issuance of common stock, net | 580 | 203 | 76,829 | ||||||||||
Proceeds from issuance of preferred stock | 1,050 | ||||||||||||
Repurchase of preferred stock | (15,003) | ||||||||||||
Net cash provided by financing activities | 180,125 | 352,975 | 46,598 | ||||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (41,123) | 63,511 | 11,816 | ||||||||||
CASH AND CASH EQUIVALENTS, beginning of period | 121,860 | 58,349 | 121,860 | 58,349 | 46,533 | ||||||||
CASH AND CASH EQUIVALENTS, end of period | 80,737 | 121,860 | 80,737 | 121,860 | 58,349 | ||||||||
Company | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||
Net income | 57,002 | 41,193 | 21,695 | ||||||||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||||
Equity in undistributed income of subsidiary | (46,931) | (42,674) | (22,306) | ||||||||||
Share-based compensation expense | 1,673 | 1,514 | 1,497 | ||||||||||
Accretion of junior subordinated debentures discount | 566 | 624 | 721 | ||||||||||
Changes in other assets and other liabilities | (7,916) | (3,291) | (2,893) | ||||||||||
Net cash provided by operating activities | 4,394 | (2,634) | (1,286) | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||
Net cash paid in acquisition of business | (6,554) | (20,510) | |||||||||||
Net cash used in investing activities | (6,554) | (20,510) | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||
Proceeds from revolving line of credit | 5,680 | ||||||||||||
Repayments of revolving line of credit | (11,335) | (20,650) | |||||||||||
Dividends paid on preferred stock | (783) | (783) | (11,277) | ||||||||||
Cash paid in lieu of fractional shares | (2) | ||||||||||||
Proceeds from issuance of common stock, net | 3,726 | 2,543 | 76,829 | ||||||||||
Proceeds from issuance of preferred stock | 1,050 | ||||||||||||
Repurchase of preferred stock | (15,003) | ||||||||||||
Net cash provided by financing activities | (2,712) | 1,760 | 30,947 | ||||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (4,872) | (21,384) | 29,661 | ||||||||||
CASH AND CASH EQUIVALENTS, beginning of period | $ 18,242 | $ 39,626 | 18,242 | 39,626 | 9,965 | ||||||||
CASH AND CASH EQUIVALENTS, end of period | $ 13,370 | $ 18,242 | $ 13,370 | $ 18,242 | $ 39,626 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share Basic [Line Items] | |||
Shares outstanding | 37,290,486 | 33,292,619 | 26,963,517 |
Stock Options | |||
Earnings Per Share Basic [Line Items] | |||
Shares outstanding | 1,921,244 | 2,223,255 | 1,783,020 |
Restricted Stock Award | |||
Earnings Per Share Basic [Line Items] | |||
Shares outstanding | 328,653 | 196,480 | 70,798 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Calculation 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 15,852 | $ 15,342 | $ 13,211 | $ 12,597 | $ 17,121 | $ 14,536 | $ 2,768 | $ 6,768 | $ 57,002 | $ 41,193 | $ 21,695 |
Dividends on preferred shares | 196 | 196 | 195 | 196 | 196 | 196 | 198 | 193 | 783 | 783 | 11,277 |
Net income available to common stockholders | $ 15,656 | $ 15,146 | $ 13,016 | $ 12,401 | $ 16,925 | $ 14,340 | $ 2,570 | $ 6,575 | $ 56,219 | $ 40,410 | $ 10,418 |
Weighted-average common stock outstanding: | |||||||||||
Weighted-average common stock outstanding (basic) | 37,290,486 | 33,292,619 | 26,963,517 | ||||||||
Incremental shares | 695,977 | 887,135 | 583,797 | ||||||||
Weighted-average common stock outstanding (dilutive) | 37,986,463 | 34,179,754 | 27,547,314 | ||||||||
Basic earnings per common share | $ 0.41 | $ 0.40 | $ 0.35 | $ 0.34 | $ 0.47 | $ 0.40 | $ 0.08 | $ 0.22 | $ 1.51 | $ 1.21 | $ 0.39 |
Diluted earnings per common share | $ 0.41 | $ 0.39 | $ 0.34 | $ 0.34 | $ 0.46 | $ 0.39 | $ 0.08 | $ 0.22 | $ 1.48 | $ 1.18 | $ 0.38 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Preferred and Common Stock (Details) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Class Of Stock [Line Items] | ||
Common stock, voting par value | $ 0.01 | $ 0.01 |
Common stock, voting shares authorized | 150,000,000 | 150,000,000 |
Common stock, voting shares issued | 38,256,500 | 36,343,239 |
Common stock, voting shares outstanding | 38,256,500 | 36,343,239 |
Series B 7.5% Fixed to Floating Non-Cumulative Perpetual Preferred Stock | ||
Class Of Stock [Line Items] | ||
Par value | $ 0.01 | $ 0.01 |
Shares authorized | 50,000 | 50,000 |
Shares issued | 10,438 | 10,438 |
Shares outstanding | 10,438 | 10,438 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Preferred and Common Stock (Parenthetical) (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Series B 7.5% Fixed to Floating Non-Cumulative Perpetual Preferred Stock | ||
Class Of Stock [Line Items] | ||
Preferred stock, dividend rate, percentage | 7.50% | 7.50% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Dec. 12, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 01, 2019 |
Class Of Stock [Line Items] | ||||||
Dividends declared and paid | $ 783,000 | $ 783,000 | $ 11,277,000 | |||
Aggregate number of shares authorized to repurchase | 1,250,000 | |||||
Approximate percentage of shares authorized to be repurchased | 3.30% | |||||
Cash dividend declared | $ 0.03 | |||||
Dividend payable date | Jan. 7, 2020 | |||||
Dividends record date | Dec. 24, 2019 | |||||
Series B Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock, dividend rate, percentage | 7.50% | |||||
Preferred stock, liquidation preference per share | $ 1,000 | |||||
Preferred stock fixed dividend close date | Dec. 30, 2021 | |||||
Preferred stock redemption price per share | $ 1,000 | |||||
Dividends declared and paid | $ 783,000 | $ 783,000 | ||||
Series B Preferred Stock | Three-month LIBOR | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock, dividend rate, percentage | 5.41% |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (unaudited) - Schedule of Selected Quarterly Financial Data (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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Line Items] | |||||||||||
Interest and dividend income | $ 65,915 | $ 71,029 | $ 66,760 | $ 61,110 | $ 62,895 | $ 61,073 | $ 44,841 | $ 38,142 | $ 264,814 | $ 206,951 | $ 136,803 |
Interest expense | 12,001 | 13,191 | 12,312 | 11,025 | 9,634 | 8,480 | 5,785 | 4,447 | 48,529 | 28,346 | 13,891 |
Net interest income | 53,914 | 57,838 | 54,448 | 50,085 | 53,261 | 52,593 | 39,056 | 33,695 | 216,285 | 178,605 | 122,912 |
PROVISION FOR LOAN AND LEASE LOSSES | 4,387 | 5,931 | 6,391 | 3,999 | 3,882 | 5,842 | 3,956 | 5,115 | 20,708 | 18,795 | 12,653 |
Net interest income after provision for loan and lease losses | 49,527 | 51,907 | 48,057 | 46,086 | 49,379 | 46,751 | 35,100 | 28,580 | 195,577 | 159,810 | 110,259 |
Non-interest income | 55,493 | 50,526 | 49,030 | ||||||||
Non-interest expense | 173,775 | 154,896 | 118,495 | ||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 20,349 | 21,265 | 18,286 | 17,395 | 23,581 | 19,938 | 3,832 | 8,089 | 77,295 | 55,440 | 40,794 |
Provision (benefit) for income taxes | 4,497 | 5,923 | 5,075 | 4,798 | 6,460 | 5,402 | 1,064 | 1,321 | 20,293 | 14,247 | 19,099 |
NET INCOME | 15,852 | 15,342 | 13,211 | 12,597 | 17,121 | 14,536 | 2,768 | 6,768 | 57,002 | 41,193 | 21,695 |
Dividends on preferred shares | 196 | 196 | 195 | 196 | 196 | 196 | 198 | 193 | 783 | 783 | 11,277 |
INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 15,656 | $ 15,146 | $ 13,016 | $ 12,401 | $ 16,925 | $ 14,340 | $ 2,570 | $ 6,575 | $ 56,219 | $ 40,410 | $ 10,418 |
Basic | $ 0.41 | $ 0.40 | $ 0.35 | $ 0.34 | $ 0.47 | $ 0.40 | $ 0.08 | $ 0.22 | $ 1.51 | $ 1.21 | $ 0.39 |
Diluted | $ 0.41 | $ 0.39 | $ 0.34 | $ 0.34 | $ 0.46 | $ 0.39 | $ 0.08 | $ 0.22 | $ 1.48 | $ 1.18 | $ 0.38 |
ASU 2014-09 | Balance without Adoption of ASC 606 | |||||||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||||||
Non-interest income | $ 14,516 | $ 14,806 | $ 14,183 | $ 11,988 | $ 14,290 | $ 10,902 | $ 14,211 | $ 11,123 | |||
Non-interest expense | $ 43,694 | $ 45,448 | $ 43,954 | $ 40,679 | $ 40,088 | $ 37,715 | $ 45,479 | $ 31,614 |
Selected Quarterly Financial _4
Selected Quarterly Financial Data (unaudited) - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Line Items] | ||||||||||||
Net income | $ 15,852 | $ 15,342 | $ 13,211 | $ 12,597 | $ 17,121 | $ 14,536 | $ 2,768 | $ 6,768 | $ 57,002 | $ 41,193 | $ 21,695 | |
Basic earnings per common share | $ 0.41 | $ 0.40 | $ 0.35 | $ 0.34 | $ 0.47 | $ 0.40 | $ 0.08 | $ 0.22 | $ 1.51 | $ 1.21 | $ 0.39 | |
Net interest income before provision for loan losses | $ 53,914 | $ 57,838 | $ 54,448 | $ 50,085 | $ 53,261 | $ 52,593 | $ 39,056 | $ 33,695 | $ 216,285 | $ 178,605 | $ 122,912 | |
Data processing costs | $ 13,733 | $ 18,242 | $ 9,539 | |||||||||
Contract termination | ||||||||||||
Quarterly Financial Information Disclosure [Line Items] | ||||||||||||
Data processing costs | $ 8,100 | $ 8,100 |
Consolidated Statements of Ch_4
Consolidated Statements of Change in Accumulated Other Comprehensive Income (Loss) - Schedule of Consolidated Statements of Changes in Accumulated Other Comprehensive Income (Loss) (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 | $ 650,672 | $ 458,578 | $ 382,658 |
Reclassification of certain income tax effects from accumulated other comprehensive income | (763) | ||
Cumulative-effect adjustment (ASU 2016-01) | (1,440) | ||
Other comprehensive income (loss), net of tax | 10,238 | (3,648) | 2,181 |
Ending balance | 750,115 | 650,672 | 458,578 |
Unrealized Gains (Losses) on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 4,763 | 2,913 | 2,233 |
Reclassification of certain income tax effects from accumulated other comprehensive income | 687 | ||
Other comprehensive income (loss), net of tax | (5,129) | 1,163 | 680 |
Ending balance | (366) | 4,763 | 2,913 |
Unrealized Gains (Losses) on Available-for-Sale Securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (14,261) | (8,000) | (9,501) |
Reclassification of certain income tax effects from accumulated other comprehensive income | (1,450) | ||
Cumulative-effect adjustment (ASU 2016-01) | (1,440) | ||
Other comprehensive income (loss), net of tax | 15,367 | (4,811) | 1,501 |
Ending balance | (334) | (14,261) | (8,000) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (9,498) | (5,087) | (7,268) |
Reclassification of certain income tax effects from accumulated other comprehensive income | (763) | ||
Cumulative-effect adjustment (ASU 2016-01) | (1,440) | ||
Other comprehensive income (loss), net of tax | 10,238 | (3,648) | 2,181 |
Ending balance | $ (700) | $ (9,498) | $ (5,087) |