Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | FIRST FINANCIAL BANKSHARES INC | |
Entity Central Index Key | 0000036029 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | FFIN | |
Entity Common Stock, Shares Outstanding | 135,702,134 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
ASSETS | |||
CASH AND DUE FROM BANKS | $ 176,278 | $ 207,835 | $ 130,979 |
FEDERAL FUNDS SOLD | 12,825 | ||
INTEREST-BEARING DEPOSITS IN BANKS | 197,758 | 40,812 | 67,060 |
Total cash and cash equivalents | 386,861 | 248,647 | 198,039 |
INTEREST-BEARING TIME DEPOSITS IN BANKS | 1,458 | 1,458 | 1,458 |
SECURITIES AVAILABLE-FOR-SALE, at fair value | 3,212,812 | 3,158,777 | 3,276,193 |
LOANS: | |||
Held for investment | 3,989,160 | 3,953,636 | 3,730,051 |
Less – allowance for loan losses | (51,585) | (51,202) | (49,499) |
Net loans held for investment | 3,937,575 | 3,902,434 | 3,680,552 |
Held for sale ($12,007 at fair value at March 31, 2019; none at March 31, 2018; and $19,185 at December 31, 2018) | 14,446 | 21,672 | 17,030 |
Net loans | 3,952,021 | 3,924,106 | 3,697,582 |
BANK PREMISES AND EQUIPMENT, net | 135,321 | 133,421 | 126,446 |
INTANGIBLE ASSETS | 174,415 | 174,683 | 175,569 |
OTHER ASSETS | 83,007 | 90,762 | 92,162 |
Total assets | 7,945,895 | 7,731,854 | 7,567,449 |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
NONINTEREST-BEARING DEPOSITS | 2,165,745 | 2,116,107 | 2,111,116 |
INTEREST-BEARING DEPOSITS | 4,184,996 | 4,064,282 | 4,079,647 |
Total deposits | 6,350,741 | 6,180,389 | 6,190,763 |
DIVIDENDS PAYABLE | 14,244 | 14,227 | 12,589 |
BORROWINGS | 382,711 | 468,706 | 372,155 |
OTHER LIABILITIES | 90,677 | 15,237 | 22,128 |
Total liabilities | 6,838,373 | 6,678,559 | 6,597,635 |
COMMITMENTS AND CONTINGENCIES | |||
SHAREHOLDERS' EQUITY: | |||
Common stock – ($0.01 par value, authorized 200,000,000 shares; 135,680,420, 67,612,760 and 67,753,133 shares issued at March 31, 2019 and 2018 and December 31, 2018, respectively) | 1,356 | 678 | 676 |
Capital surplus | 445,672 | 443,114 | 437,868 |
Retained earnings | 629,988 | 606,658 | 533,427 |
Treasury stock (shares at cost: 928,678, 493,994 and 467,811 at March 31, 2019 and 2018, and December 31, 2018, respectively) | (7,660) | (7,507) | (7,291) |
Deferred compensation | 7,660 | 7,507 | 7,291 |
Accumulated other comprehensive earnings (loss) | 30,506 | 2,845 | (2,157) |
Total shareholders' equity | 1,107,522 | 1,053,295 | 969,814 |
Total liabilities and shareholders' equity | $ 7,945,895 | $ 7,731,854 | $ 7,567,449 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | |||
Loans held-for-sale, fair value | $ 12,007 | $ 19,185 | $ 0 |
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 |
Common stock, shares issued | 135,680,420 | 67,753,133 | 67,612,760 |
Treasury stock, shares | 928,678 | 467,811 | 493,994 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
INTEREST INCOME: | ||
Interest and fees on loans | $ 53,232 | $ 46,746 |
Interest on investment securities: | ||
Taxable | 13,289 | 11,354 |
Exempt from federal income tax | 9,763 | 10,341 |
Interest on federal funds sold and interest-bearing deposits in banks | 617 | 641 |
Total interest income | 76,901 | 69,082 |
INTEREST EXPENSE: | ||
Interest on deposits | 6,661 | 3,519 |
Other | 726 | 114 |
Total interest expense | 7,387 | 3,633 |
Net interest income | 69,514 | 65,449 |
PROVISION FOR LOAN LOSSES | 965 | 1,310 |
Net interest income after provision for loan losses | 68,549 | 64,139 |
NONINTEREST INCOME: | ||
ATM, interchange and credit card fees | 6,840 | 6,996 |
Net gain on sale of available-for-sale securities (includes $0 and $1,221 for the three months ended March 31, 2019 and 2018, respectively, related to accumulated other comprehensive earnings reclassifications) | 1,221 | |
Net gain on sale of foreclosed assets | 69 | 99 |
Net (loss) gain on sale of assets | (91) | |
Interest on loan recoveries | 338 | 119 |
Other | 1,561 | 1,358 |
Total noninterest income | 24,437 | 24,423 |
NONINTEREST EXPENSE: | ||
Salaries and employee benefits | 27,424 | 26,203 |
Net occupancy expense | 2,763 | 2,883 |
Equipment expense | 3,127 | 3,516 |
FDIC insurance premiums | 538 | 566 |
ATM, interchange and credit card expenses | 2,383 | 2,143 |
Professional and service fees | 1,832 | 2,413 |
Printing, stationery and supplies | 366 | 486 |
Operational and other losses | 266 | 566 |
Software amortization and expense | 923 | 524 |
Amortization of intangible assets | 269 | 387 |
Other | 7,476 | 8,111 |
Total noninterest expense | 47,367 | 47,798 |
EARNINGS BEFORE INCOME TAXES | 45,619 | 40,764 |
INCOME TAX EXPENSE (includes $0 and $256 for the three months ended March 31, 2019 and 2018, respectively, related to income tax expense reclassification) | 7,367 | 6,245 |
NET EARNINGS | $ 38,252 | $ 34,519 |
EARNINGS PER SHARE, BASIC | $ 0.28 | $ 0.26 |
EARNINGS PER SHARE, ASSUMING DILUTION | 0.28 | 0.25 |
DIVIDENDS PER SHARE | $ 0.11 | $ 0.10 |
Trust Fees [Member] | ||
NONINTEREST INCOME: | ||
Revenue from contract with customer | $ 6,979 | $ 6,904 |
Service Charges on Deposit Accounts [Member] | ||
NONINTEREST INCOME: | ||
Revenue from contract with customer | 5,176 | 4,884 |
Real Estate Mortgage Operations [Member] | ||
NONINTEREST INCOME: | ||
Revenue from contract with customer | $ 3,474 | $ 2,933 |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Reclassifications adjustment for realized gains on investment securities included in net earnings (loss), before income tax | $ 0 | $ 1,221 |
Income tax expense from reclassification items | $ 0 | $ 256 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
NET EARNINGS | $ 38,252 | $ 34,519 |
OTHER ITEMS OF COMPREHENSIVE EARNINGS (LOSS): | ||
Change in unrealized gain on investment securities available-for-sale, before income taxes | 35,014 | (42,706) |
Reclassification adjustment for realized gains on investment securities included in net earnings, before income taxes | 0 | (1,221) |
Total other items of comprehensive earnings (loss) | 35,014 | (43,927) |
Income tax benefit (expense) related to other items of comprehensive earnings | (7,353) | 9,225 |
Reclassification of certain income tax effects related to the change in the U.S. statutory federal income tax rate under the Tax Cuts and Jobs Act to retained earnings | 5,759 | |
COMPREHENSIVE EARNINGS | $ 65,913 | $ 5,576 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Deferred Compensation [Member] | Accumulated Other Comprehensive Earnings (Losses) [Member] |
Beginning Balance at Dec. 31, 2017 | $ 922,768 | $ 663 | $ 378,062 | $ 517,257 | $ (7,148) | $ 7,148 | $ 26,786 |
Beginning Balance, Shares at Dec. 31, 2017 | 66,260,444 | (495,964) | |||||
Net earnings (unaudited) | 34,519 | 34,519 | |||||
Stock option exercises (unaudited) | 1,355 | 1,355 | |||||
Stock option exercises, Shares | 62,945 | ||||||
Cash dividends declared | (12,590) | (12,590) | |||||
Stock issued in acquisition of Commercial Bancshares, Inc. | 58,087 | $ 13 | 58,074 | ||||
Stock issued in acquisition of Commercial Bancshares, Inc, Shares | 1,289,371 | ||||||
Change in unrealized gain in investment securities available-for-sale, net of related income taxes (unaudited) | (34,702) | (34,702) | |||||
Shares purchased (redeemed) in connection with directors' deferred compensation plan, net (unaudited) | $ (143) | 143 | |||||
Shares purchased (redeemed) in connection with directors' deferred compensation plan, net, Shares | 1,970 | ||||||
Stock option expense (unaudited) | 377 | 377 | |||||
Reclassification of certain income tax effects related to the change in the U.S. statutory federal income tax rate under the Tax Cuts and Jobs Act to retained earnings | (5,759) | 5,759 | |||||
Ending Balance at Mar. 31, 2018 | 969,814 | $ 676 | 437,868 | 533,427 | $ (7,291) | 7,291 | (2,157) |
Ending Balance, Shares at Mar. 31, 2018 | 67,612,760 | (493,994) | |||||
Beginning Balance at Dec. 31, 2018 | 1,053,295 | $ 678 | 443,114 | 606,658 | $ (7,507) | 7,507 | 2,845 |
Beginning Balance, Shares at Dec. 31, 2018 | 67,753,133 | (467,811) | |||||
Net earnings (unaudited) | 38,252 | 38,252 | |||||
Stock option exercises (unaudited) | 2,246 | 2,246 | |||||
Stock option exercises, Shares | 87,077 | ||||||
Cash dividends declared | (14,244) | (14,244) | |||||
Change in unrealized gain in investment securities available-for-sale, net of related income taxes (unaudited) | 27,661 | 27,661 | |||||
Shares purchased (redeemed) in connection with directors' deferred compensation plan, net (unaudited) | $ (153) | 153 | |||||
Shares purchased (redeemed) in connection with directors' deferred compensation plan, net, Shares | 3,472 | ||||||
Stock option expense (unaudited) | 312 | 312 | |||||
Two-for-one stock spllit in the form of a 100% stock dividend | $ 678 | (678) | |||||
Two-for-one stock spllit in the form of a 100% stock dividend, shares | 67,840,210 | (464,339) | |||||
Ending Balance at Mar. 31, 2019 | $ 1,107,522 | $ 1,356 | $ 445,672 | $ 629,988 | $ (7,660) | $ 7,660 | $ 30,506 |
Ending Balance, Shares at Mar. 31, 2019 | 135,680,420 | (928,678) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash dividend per share | $ 0.11 | $ 0.10 |
Common Stock Dividend Percentage | 100.00% | |
Retained Earnings [Member] | ||
Cash dividend per share | $ 0.11 | $ 0.10 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 38,252 | $ 34,519 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 2,982 | 3,178 |
Provision for loan losses | 965 | 1,310 |
Securities premium amortization (discount accretion), net | 6,132 | 7,185 |
Gain (loss) on sale of assets, net | 83 | (1,229) |
Deferred federal income tax benefit | 261 | |
Change in loans held for sale | 6,953 | (1,901) |
Change in other assets | 7,927 | (4,462) |
Change in other liabilities | 8,972 | 6,269 |
Total adjustments | 34,014 | 10,611 |
Net cash provided by operating activities | 72,266 | 45,130 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Cash received in acquisition of Commercial Bancshares, Inc. | 18,653 | |
Activity in available-for-sale securities: | ||
Sales | 231 | 91,445 |
Maturities | 106,188 | 107,980 |
Purchases | (72,142) | (373,547) |
Net decrease (increase) in loans | (36,070) | 21,753 |
Purchases of bank premises and equipment and other assets | (4,700) | (1,808) |
Proceeds from sale of bank premises and equipment and other assets | 65 | 266 |
Net cash used in investing activities | (6,428) | (135,258) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase (decrease) in noninterest-bearing deposits | 49,638 | (92,574) |
Net increase (decrease) in interest-bearing deposits | 120,714 | (21,526) |
Net increase (decrease) in borrowings | (85,995) | 41,155 |
Common stock transactions: | ||
Proceeds from stock issuances | 2,246 | 1,355 |
Dividends paid | (14,227) | (12,590) |
Net cash provided by (used in) financing activities | 72,376 | (84,180) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 138,214 | (174,308) |
CASH AND CASH EQUIVALENTS, beginning of period | 248,647 | 372,347 |
CASH AND CASH EQUIVALENTS, end of period | 386,861 | 198,039 |
SUPPLEMENTAL INFORMATION AND NONCASH TRANSACTIONS: | ||
Interest paid | 7,220 | 3,635 |
Transfer of loans and bank premises to other real estate | 237 | $ 126 |
Investment securities purchased but not settled | $ 59,397 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation The unaudited interim consolidated financial statements include the accounts of the Company, a Texas corporation and a financial holding company registered under the Bank Holding Company Act of 1956, as amended, or BHCA, and its wholly-owned subsidiaries: First Financial Bank, National Association, Abilene, Texas; First Technology Services, Inc.; First Financial Trust & Asset Management Company, National Association; First Financial Investments, Inc.; and First Financial Insurance Agency, Inc. Through our subsidiary bank, we conduct a full-service commercial banking business. Our banking centers are located primarily in Central, North Central, Southeast and West Texas. As of March 31, 2019, we had 73 financial centers across Texas, with eleven one In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments necessary for a fair presentation of the Company’s financial position and unaudited results of operations and should be read in conjunction with the Company’s audited consolidated financial statements, and notes thereto in the Company’s Annual Report on Form 10-K, for the year ended December 31, 2018. All adjustments were of a normal recurring nature. However, the results of operations for the three months ended March 31, 2019, are not necessarily indicative of the results to be expected for the year ending December 31, 2019, due to seasonality, changes in economic conditions and loan credit quality, interest rate fluctuations, regulatory and legislative changes and other factors. The preparation of financial statements in conformity with United States generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the financial statement date. Actual results could vary. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted under U.S. Securities and Exchange Commission (“SEC”) rules and regulations. The Company evaluated subsequent events for potential recognition and/or disclosure through the date the consolidated financial statements were issued. Goodwill and other intangible assets are evaluated annually for impairment as of the end of the second quarter. No such impairment has been noted in connection with the current or any prior evaluations. |
Stock Split and Stock Repurchas
Stock Split and Stock Repurchase | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stock Repurchase | Note 2 – Stock Split and Stock Repurchase On April 23, 2019, the Company’s Board of Directors declared a two-for-one stock split in the form of a 100% stock dividend effective for shareholders of record on May 15, 2019 to be distributed on June 3, 2019. All per share amounts in this report have been restated to reflect this stock split. An amount equal to the par value of the additional common shares to be issued pursuant to the stock split was reflected as a transfer from retained earnings to common stock on the consolidated financial statements as of and for the three months ended March 31, 2019. On July 25, 2017, the Company’s Board of Directors authorized the repurchase of up to 2,000,000 common shares through September 30, 2020. The shares buyback plan authorizes management to repurchase the shares at such time as repurchases are considered beneficial to shareholders. Any repurchase of shares will be made through the open market, block trades or in privately negotiated transactions in accordance with applicable laws and regulations. Under the repurchase plan, there is no minimum number of shares that the Company is required to repurchase. Through March 31, 2019, no shares were repurchased under this authorization. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 3 – Earnings Per Share Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of shares outstanding during the periods presented. In computing diluted earnings per common share for the three months ended March 31, 2019 and 2018, the Company assumes that all dilutive outstanding options to purchase common shares have been exercised at the beginning of the period (or the time of issuance, if later). The dilutive effect of these outstanding options and the restricted shares is reflected by application of the treasury stock method, whereby the proceeds from exercised options and restricted shares are assumed to be used to purchase common shares at the average market price during the respective periods. The weighted average common shares outstanding used in computing basic earnings per common share for the three months ended March 31, 2019 and 2018 were 135,494,254 and 135,054,020 shares, respectively. The weighted average common shares outstanding used in computing fully diluted earnings per common share for the three months ended March 31, 2019 and 2018 were 136,286,862 and 135,599,090 shares, respectively. For the three months ended March 31, 2019 and 2018, there were no stock options that were anti-dilutive that have been excluded from the EPS calculation. |
Interest-bearing Time Deposits
Interest-bearing Time Deposits in Banks and Securities | 3 Months Ended |
Mar. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Interest-bearing Time Deposits in Banks and Securities | Note 4 – Interest-bearing Time Deposits in Banks and Securities Interest-bearing time deposits in banks totaled $1,458,000 at March 31, 2019 and 2018 and December 31, 2018, respectively, and at March 31, 2019 have original maturities within twelve Management classifies debt and equity securities as held-to-maturity, available-for-sale, or trading based on its intent. Debt securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity and recorded at cost, adjusted for amortization of premiums and accretion of discounts, which are recognized as adjustments to interest income using the interest method. Debt securities not classified as held-to-maturity or trading are classified as available-for-sale and recorded at fair value, with all unrealized gains and unrealized losses judged to be temporary, net of deferred income taxes, excluded from earnings and reported in the consolidated statements of comprehensive earnings. Available-for-sale debt securities that have unrealized gains and losses are excluded from earnings and reported net of tax in accumulated other comprehensive income until realized. Declines in the fair value of available-for-sale debt securities below their cost that are deemed to be other-than-temporary are reflected in earnings as a realized loss if there is no ability or intent to hold to recovery. If the Company does not intend to sell and will not be required to sell prior to recovery of its amortized cost basis, only the credit component of the impairment is reflected in earnings as a realized loss with the noncredit portion recognized in other comprehensive income. In estimating other-than-temporary impairment losses, we consider (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) our intent and ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Effective January 1, 2018, in accordance with ASU 2016-01 (see note 13), increases or decreases in the fair value of equity securities are recorded in earnings. Prior to January 1, 2018, such increases or decreases were recorded similar to increases or decreases in debt securities. The Company records its available-for-sale and equity securities portfolio at fair value. Fair values of these securities are determined based on methodologies in accordance with current authoritative accounting guidance. Fair values are volatile and may be influenced by a number of factors, including market interest rates, prepayment speeds, discount rates, credit ratings and yield curves. Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on the quoted prices of similar instruments or an estimate of fair value by using a range of fair value estimates in the market place as a result of the illiquid market specific to the type of security. When the fair value of a debt security is below its amortized cost, and depending on the length of time the condition exists and the extent the fair value is below amortized cost, additional analysis is performed to determine whether an other-than-temporary impairment condition exists. Available-for-sale and held-to-maturity debt securities are analyzed quarterly for possible other-than-temporary impairment. The analysis considers (i) whether we have the intent to sell our debt securities prior to recovery and/or maturity, (ii) whether it is more likely than not that we will have to sell our debt securities prior to recovery and/or maturity, (iii) the length of time and extent to which the fair value has been less than amortized cost, and (iv) the financial condition of the issuer. Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment. If actual information or conditions are different than estimated, the extent of the impairment of the debt security may be different than previously estimated, which could have a material effect on the Company’s results of operations and financial condition. The Company’s investment portfolio consists of U.S. Treasury securities, obligations of U.S. government sponsored enterprises and agencies, obligations of state and political subdivisions, mortgage pass-through securities, corporate bonds and general obligation or revenue based municipal bonds. Pricing for such securities is generally readily available and transparent in the market. The Company utilizes independent third-party pricing services to value its investment securities, which the Company reviews as well as the underlying pricing methodologies for reasonableness and to ensure such prices are aligned with pricing matrices. The Company validates prices supplied by the independent pricing services by comparison to prices obtained from other third-party sources on a quarterly basis. A summary of the Company’s available-for-sale securities follows (in thousands): March 31, 2019 Gross Gross Amortized Unrealized Unrealized Estimated Cost Basis Holding Gains Holding Losses Fair Value U.S. Treasury securities $ 9,977 $ 14 $ — $ 9,991 Obligations of states and political subdivisions 1,196,111 44,155 (536 ) 1,239,730 Corporate bonds and other 4,874 — (15 ) 4,859 Residential mortgage-backed securities 1,519,004 8,506 (11,222 ) 1,516,288 Commercial mortgage-backed securities 442,569 1,771 (2,396 ) 441,944 Total securities available-for-sale $ 3,172,535 $ 54,446 $ (14,169 ) $ 3,212,812 March 31, 2018 Gross Gross Amortized Unrealized Unrealized Estimated Cost Basis Holding Gains Holding Losses Fair Value Obligations of U.S. government sponsored enterprises and agencies $ 50,467 $ — $ (252 ) $ 50,215 Obligations of states and political subdivisions 1,289,886 33,014 (2,767 ) 1,320,133 Corporate bonds and other 9,382 — (55 ) 9,327 Residential mortgage-backed securities 1,449,482 2,912 (24,622 ) 1,427,772 Commercial mortgage-backed securities 476,060 235 (7,549 ) 468,746 Total securities available-for-sale $ 3,275,277 $ 36,161 $ (35,245 ) $ 3,276,193 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Estimated Cost Basis Holding Gains Holding Losses Fair Value U.S. Treasury securities $ 9,970 $ — $ (8 ) $ 9,962 Obligations of U.S. government sponsored enterprises and agencies 301 — — 301 Obligations of states and political subdivisions 1,229,828 30,013 (1,970 ) 1,257,871 Corporate bonds and other 4,875 — (77 ) 4,798 Residential mortgage-backed securities 1,472,228 3,928 (21,611 ) 1,454,545 Commercial mortgage-backed securities 436,366 670 (5,736 ) 431,300 Total securities available-for-sale $ 3,153,568 $ 34,611 $ (29,402 ) $ 3,158,777 The Company invests in mortgage-backed securities that have expected maturities that differ from their contractual maturities. These differences arise because borrowers may have the right to call or prepay obligations with or without a prepayment penalty. These securities include collateralized mortgage obligations (CMOs) and other asset backed securities. The expected maturities of these securities at March 31, 2019 were computed by using scheduled amortization of balances and historical prepayment rates. At March 31, 2019 and 2018, and December 31, 2018, the Company did not hold CMOs that entail higher risks than standard mortgage-backed securities. The amortized cost and estimated fair value of available-for-sale securities at March 31, 2019, by contractual and expected maturity, are shown below (in thousands): Amortized Estimated Cost Basis Fair Value Due within one year $ 176,257 $ 177,722 Due after one year through five years 554,136 575,051 Due after five years through ten years 478,849 499,689 Due after ten years 1,720 2,118 Mortgage-backed securities 1,961,573 1,958,232 Total $ 3,172,535 $ 3,212,812 The following tables disclose the Company’s investment securities that have been in a continuous unrealized-loss position for less than 12 months and for 12 or more months (in thousands): Less than 12 Months 12 Months or Longer Total March 31, 2019 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Obligations of states and political subdivisions $ 2,807 $ 13 $ 48,068 $ 523 $ 50,875 $ 536 Corporate bonds and other — — 4,873 15 4,873 15 Residential mortgage-backed securities 2,473 17 854,482 11,205 856,955 11,222 Commercial mortgage-backed securities — — 303,637 2,396 303,637 2,396 Total $ 5,280 $ 30 $ 1,211,060 $ 14,139 $ 1,216,340 $ 14,169 Less than 12 Months 12 Months or Longer Total March 31, 2018 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Obligations of U.S. government sponsored enterprises and agencies $ 50,215 $ 252 $ — $ — $ 50,215 $ 252 Obligations of states and political subdivisions 156,791 1,103 43,335 1,664 200,126 2,767 Corporate bonds and other 9,135 51 235 4 9,370 55 Residential mortgage-backed securities 963,962 16,825 224,777 7,797 1,188,739 24,622 Commercial mortgage-backed securities 319,062 6,056 89,801 1,493 408,863 7,549 Total $ 1,499,165 $ 24,287 $ 358,148 $ 10,958 $ 1,857,313 $ 35,245 Less than 12 Months 12 Months or Longer Total December 31, 2018 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury securities $ 9,962 $ 8 $ — $ — $ 9,962 $ 8 Obligations of U.S. government sponsored enterprises and agencies — — 301 — 301 — Obligations of state and political subdivisions 27,489 107 114,461 1,863 141,950 1,970 Corporate bonds and other 4,348 68 450 9 4,798 77 Residential mortgage-backed securities 119,584 483 922,289 21,128 1,041,873 21,611 Commercial mortgage-backed securities 1,994 5 343,015 5,731 345,009 5,736 Total $ 163,377 $ 671 $ 1,380,516 $ 28,731 $ 1,543,893 $ 29,402 The number of investments in an unrealized loss position totaled 245 at March 31, 2019. We do not believe these unrealized losses are “other-than-temporary” as (i) we do not have the intent to sell our securities prior to recovery and/or maturity and (ii) it is more likely than not that we will not have to sell our securities prior to recovery and/or maturity. In making this determination, we also consider the length of time and extent to which fair value has been less than cost and the financial condition of the issuer. The unrealized losses noted are interest rate related due to the level of interest rates at March 31, 2019 compared to the time of purchase. We have reviewed the ratings of the issuers and have not identified any issues related to the ultimate repayment of principal as a result of credit concerns on these securities. Our mortgage related securities are backed by GNMA, FNMA and FHLMC or are collateralized by securities backed by these agencies. At March 31, 2019, 84.98% of our available-for-sale securities that are obligations of states and political subdivisions were issued within the State of Texas, of which 33.90% are guaranteed by the Texas Permanent School Fund. At March 31, 2019, $2,119,995,000 of the Company’s securities were pledged as collateral for public or trust fund deposits, repurchase agreements and for other purposes required or permitted by law. During the quarters ended March 31, 2019 and 2018, sales of investment securities that were classified as available-for-sale totaled $231,000 and $91,445,000, respectively. Gross realized gains from security sales during the first quarter of 2019 and 2018 totaled $4,000 and $1,242,000, respectively. Gross realized losses from security sales during the first quarter of 2019 and 2018 totaled $4,000 and $21,000, respectively. The specific identification method was used to determine cost in order to compute the realized gains and losses. |
Loans Held for Investment and A
Loans Held for Investment and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans Held for Investment and Allowance for Loan Losses | Note 5 – Loans Held for Investment and Allowance for Loan Losses Loans held for investment are stated at the amount of unpaid principal, reduced by unearned income and an allowance for loan losses. Interest on loans is calculated by using the simple interest method on daily balances of the principal amounts outstanding. The Company defers and amortizes net loan origination fees and costs as an adjustment to yield. The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes the collectability of the principal is unlikely. The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on an annual basis and makes changes as appropriate. Management receives and reviews monthly reports related to loan originations, quality, concentrations, delinquencies, nonperforming and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geographic location. Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and effectively. Underwriting standards are designed to determine whether the borrower possesses sound business ethics and practices and to evaluate current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and include personal guarantees. Agricultural loans are subject to underwriting standards and processes similar to commercial loans. These agricultural loans are based primarily on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. Most agricultural loans are secured by the agriculture related assets being financed, such as farm land, cattle or equipment, and include personal guarantees. Real estate loans are also subject to underwriting standards and processes similar to commercial and agricultural loans. These loans are underwritten primarily based on projected cash flows and, secondarily, as loans secured by real estate. The repayment of real estate loans is generally largely dependent on the successful operation of the property securing the loans or the business conducted on the property securing the loan. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are generally diverse in terms of type and geographic location within Texas. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry. Generally, real estate loans are owner occupied which further reduces the Company’s risk. Consumer loan underwriting utilizes methodical credit standards and analysis to supplement the Company’s underwriting policies and procedures. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimize the Company’s risk. The allowance for loan losses is an amount which represents management’s best estimate of probable losses that are inherent in the Company’s loan portfolio as of the balance sheet date. The allowance for loan losses is comprised of three elements: (i) specific reserves determined based on probable losses on specific classified loans; (ii) a historical valuation reserve component that considers historical loss rates and estimated loss emergence periods; and (iii) qualitative reserves based upon general economic conditions and other qualitative risk factors both internal and external to the Company. The allowance for loan losses is increased by charges to income and decreased by charge-offs (net of recoveries). Management’s periodic evaluation of the appropriateness of the allowance is based on general economic conditions, the financial condition of borrowers, the value and liquidity of collateral, delinquency, prior loan loss experience, and the results of periodic reviews of the portfolio. For purposes of determining our historical valuation reserve, the loan portfolio, less cash secured loans, government guaranteed loans and classified loans, is multiplied by the Company’s historical loss rate adjusted for the estimated loss emergence period. Specific allocations are increased or decreased in accordance with deterioration or improvement in credit quality and a corresponding increase or decrease in risk of loss on a particular loan. In addition, we adjust our allowance for qualitative factors such as current local economic conditions and trends, including, without limitations, unemployment, oil and gas prices, drought conditions, changes in lending staff, policies and procedures, changes in credit concentrations, changes in the trends and severity of problem loans and changes in trends in volume and terms of loans. This qualitative reserve serves to estimate for additional areas of losses inherent in our portfolio that are not reflected in our historic loss factors. Although we believe we use the best information available to make loan loss allowance determinations, future adjustments could be necessary if circumstances or economic conditions differ substantially from the assumptions used in making our initial determinations. A decline in the economy could result in increased levels of non-performing assets and charge-offs, increased loan provisions and reductions in income. Additionally, bank regulatory agencies periodically review our allowance for loan losses and methodology and could require, in accordance with U.S. GAAP, additional provisions to the allowance for loan losses based on their judgment of information available to them at the time of their examination as well as changes to our methodology. Accrual of interest is discontinued on a loan and payments are applied to principal when management believes, after considering economic and business conditions and collection efforts, the borrower’s financial condition is such that collection of interest is doubtful. Except consumer loans, generally all loans past due greater than 90 days, based on contractual terms, are placed on non-accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Consumer loans are generally charged-off when a loan becomes past due 90 days. For other loans in the portfolio, facts and circumstances are evaluated in making charge-off decisions. Loans are considered impaired when, based on current information and events, management determines that it is probable we will be unable to collect all amounts due in accordance with the loan agreement, including scheduled principal and interest payments. If a loan is impaired, a specific valuation allowance is allocated, if necessary. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectable. The Company’s policy requires measurement of the allowance for an impaired, collateral dependent loan based on the fair value of the collateral less cost to sell. Other loan impairments for non-collateral dependent loans are measured based on the present value of expected future cash flows or the loan’s observable market price. At March 31, 2019 and 2018 and December 31, 2018, all significant impaired loans have been determined to be collateral dependent and the allowance for loss has been measured utilizing the estimated fair value of the collateral less cost to sell. From time to time, the Company modifies its loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by the Company that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. For all impaired loans, including the Company’s troubled debt restructurings, the Company performs a periodic, well-documented credit evaluation of the borrower’s financial condition and prospects for repayment to assess the likelihood that all principal and interest payments required under the terms of the agreement will be collected in full. When doubt exists about the ultimate collectability of principal and interest, the troubled debt restructuring remains on non-accrual status and payments received are applied to reduce principal to the extent necessary to eliminate such doubt. This determination of accrual status is judgmental and is based on facts and circumstances related to each troubled debt restructuring. Each of these loans is individually evaluated for impairment and a specific reserve is recorded based on probable losses, taking into consideration the related collateral, modified loan terms and cash flow. As of March 31, 2019 and 2018 and December 31, 2018, substantially all of the Company’s troubled debt restructured loans are included in the non-accrual totals. Loans acquired, including loans acquired in a business combination, are initially recorded at fair value with no valuation allowance. Acquired loans are segregated between those considered to be credit impaired and those deemed performing. To make this determination, management considers such factors as past due status, non-accrual status and credit risk ratings. The fair value of acquired performing loans is determined by discounting expected cash flows, both principal and interest, at prevailing market interest rates. The difference between the fair value and principal balances at acquisition date, the fair value discount, is accreted into interest income over the estimated life of the acquired portfolio. Purchased credit impaired loans are those loans that showed evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all amounts contractually owed. Their acquisition fair value, which includes a credit component at the acquisition date, was based on the estimate of cash flows, both principal and interest, expected to be collected or estimated collateral values if cash flows are not estimable, discounted at prevailing market rates of interest. The difference between the discounted cash flows expected at acquisition and the investment in the loan is recognized as interest income on a level-yield method over the life of the loan, unless management was unable to reasonably forecast cash flows in which case the loans were placed on nonaccrual. Subsequent to the acquisition date, increases in expected cash flows will generally result in a recovery of any previously recorded allowance for loan loss, to the extent applicable, and/or a reclassification from the nonaccretable difference to accretable yield, which will be recognized prospectively. Decreases in expected cash flows subsequent to acquisition are recognized as impairment. Valuation allowances on these impaired loans reflect only losses incurred after the acquisition. The carrying amount of purchased credit impaired loans at March 31, 2019 and 2018 and December 31, 2018 were $859,000, $3,201,000 and $827,000, respectively, compared to a contractual balance of $1,196,000, $4,129,000 and $1,157,000, respectively. Other purchased credit impaired loan disclosures were omitted due to immateriality. Loans held-for-investment by class of financing receivables are as follows (in thousands): March 31, December 31, 2019 2018 2018 Commercial $ 826,886 $ 734,156 $ 844,953 Agricultural 91,336 95,958 96,677 Real estate 2,684,207 2,502,904 2,639,346 Consumer 386,731 397,033 372,660 Total loans held-for-investment $ 3,989,160 $ 3,730,051 $ 3,953,636 The Company’s non-accrual loans, loans still accruing and past due 90 days or more and restructured loans are as follows (in thousands): March 31, December 31, 2019 2018 2018 Non-accrual loans* $ 28,508 $ 22,752 $ 27,534 Loans still accruing and past due 90 days or more 97 327 1,008 Troubled debt restructured loans** 472 514 513 Total $ 29,077 $ 23,593 $ 29,055 * Includes $859,000, $3,201,000 and $827,000 of purchased credit impaired loans as of March 31, 2019 and 2018, and December 31, 2018, respectively. ** Troubled debt restructured loans of $4,566,000, $4,608,000 and $3,840,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at March 31, 2019 and 2018, and December 31, 2018, respectively. The Company’s recorded investment in impaired loans and the related valuation allowance are as follows (in thousands): March 31, 2019 March 31, 2018 December 31, 2018 Recorded Investment Valuation Allowance Recorded Investment Valuation Allowance Recorded Investment Valuation Allowance $ 28,508 $ 4,472 $ 22,752 $ 4,365 $ 27,534 $ 4,069 The Company had $29,724,000, $24,869,000 and $29,632,000 in non-accrual, past due 90 days or more and still accruing, restructured loans and foreclosed assets at March 31, 2019 and 2018, and December 31, 2018, respectively. Non-accrual loans at March 31, 2019 and 2018, and December 31, 2018, consisted of the following by class of financing receivables (in thousands): March 31, December 31, 2019 2018 2018 Commercial $ 8,897 $ 5,351 $ 9,334 Agricultural 831 143 759 Real estate 18,254 16,161 16,714 Consumer 526 1,097 727 Total $ 28,508 $ 22,752 $ 27,534 No significant additional funds are committed to be advanced in connection with impaired loans as of March 31, 2019. The Company’s impaired loans and related allowance are summarized in the following tables by class of financing receivables (in thousands). No interest income was recognized on impaired loans subsequent to their classification as impaired. March 31, 2019 Unpaid Contractual Principal Balance Recorded Investment With No Allowance* Recorded Investment With Allowance Total Recorded Investment Related Allowance Three- Month Average Recorded Investment Commercial $ 10,227 $ 6,129 $ 2,768 $ 8,897 $ 1,184 $ 9,292 Agricultural 892 179 652 831 130 859 Real Estate 26,528 6,444 11,810 18,254 2,901 19,268 Consumer 689 27 499 526 257 577 Total $ 38,336 $ 12,779 $ 15,729 $ 28,508 $ 4,472 $ 29,996 * Includes $859,000 of purchased credit impaired loans. March 31, 2018 Unpaid Contractual Principal Balance Recorded Investment With No Allowance* Recorded Investment With Allowance Total Recorded Investment Related Allowance Three- Month Average Recorded Investment Commercial $ 7,360 $ 1,754 $ 3,597 $ 5,351 $ 1,306 $ 5,725 Agricultural 159 12 131 143 30 146 Real Estate 20,168 3,799 12,362 16,161 2,580 16,751 Consumer 1,292 117 980 1,097 449 1,149 Total $ 28,979 $ 5,682 $ 17,070 $ 22,752 $ 4,365 $ 23,771 * Includes $3,201,000 of purchased credit impaired loans. December 31, 2018 Unpaid Contractual Principal Balance Recorded Investment With No Allowance* Recorded Investment With Allowance Total Recorded Investment Related Allowance 12 Month Average Recorded Investment Commercial $ 10,808 $ 6,728 $ 2,606 $ 9,334 $ 1,133 $ 7,986 Agricultural 799 213 546 759 170 842 Real Estate 24,072 6,699 10,015 16,714 2,409 16,042 Consumer 935 101 626 727 357 914 Total $ 36,614 $ 13,741 $ 13,793 $ 27,534 $ 4,069 $ 25,784 * Includes $827,000 of purchased credit impaired loans. The Company recognized interest income on impaired loans prior to being recognized as impaired of approximately $948,000 during the year ended December 31, 2018. Such amounts for the three-month period ended March 31, 2019 and 2018 were not significant. From a credit risk standpoint, the Company rates its loans in one of four categories: (i) pass, (ii) special mention, (iii) substandard or (iv) doubtful. Loans rated as loss are charged-off. The ratings of loans reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on our credits as part of our on-going monitoring of the credit quality of our loan portfolio. Ratings are adjusted to reflect the degree of risk and loss that are felt to be inherent in each credit as of each reporting period. Our methodology is structured so that specific allocations are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss). Credits rated special mention show clear signs of financial weaknesses or deterioration in credit worthiness, however, such concerns are not so pronounced that the Company generally expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits rated more harshly. Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed. Credits rated doubtful are those in which full collection of principal appears highly questionable, and which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits rated doubtful are generally also placed on non-accrual. The following summarizes the Company’s internal ratings of its loans held-for-investment by class of financing receivables and portfolio segments, which are the same (in thousands): March 31, 2019 Pass Special Mention Substandard Doubtful Total Commercial $ 787,651 $ 23,182 $ 16,053 $ — $ 826,886 Agricultural 87,151 20 4,165 — 91,336 Real Estate 2,611,139 21,827 51,241 — 2,684,207 Consumer 384,786 246 1,699 — 386,731 Total $ 3,870,727 $ 45,275 $ 73,158 $ — $ 3,989,160 March 31, 2018 Pass Special Mention Substandard Doubtful Total Commercial $ 705,251 $ 9,401 $ 19,504 $ — $ 734,156 Agricultural 90,975 1,755 3,228 — 95,958 Real Estate 2,415,458 28,638 58,808 — 2,502,904 Consumer 394,312 285 2,436 — 397,033 Total $ 3,605,996 $ 40,079 $ 83,976 $ — $ 3,730,051 December 31, 2018 Pass Special Mention Substandard Doubtful Total Commercial $ 804,584 $ 23,392 $ 16,977 $ — $ 844,953 Agricultural 92,864 46 3,767 — 96,677 Real Estate 2,559,379 26,626 53,341 — 2,639,346 Consumer 370,510 315 1,835 — 372,660 Total $ 3,827,337 $ 50,379 $ 75,920 $ — $ 3,953,636 The Company’s past due loans are as follows (in thousands): March 31, 2019 15-59 Days Past Due* 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans 90 Days Past Due Still Accruing Commercial $ 4,123 $ 239 $ 885 $ 5,247 $ 821,639 $ 826,886 $ 63 Agricultural 323 17 — 340 90,996 91,336 — Real Estate 15,649 671 1,541 17,861 2,666,346 2,684,207 8 Consumer 1,003 96 26 1,125 385,606 386,731 26 Total $ 21,098 $ 1,023 $ 2,452 $ 24,573 $ 3,964,587 $ 3,989,160 $ 97 March 31, 2018 15-59 Days Past Due* 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans 90 Days Past Due Still Accruing Commercial $ 4,639 $ 760 $ 1,066 $ 6,465 $ 727,691 $ 734,156 $ 204 Agricultural 332 — — 332 95,626 95,958 — Real Estate 16,037 544 748 17,329 2,485,575 2,502,904 76 Consumer 824 221 161 1,206 395,827 397,033 47 Total $ 21,832 $ 1,525 $ 1,975 $ 25,332 $ 3,704,719 $ 3,730,051 $ 327 December 31, 2018 15-59 Days Past Due* 60-89 Days Past Due Greater Than 90 Days Total Past Due Total Current Total Loans Total 90 Days Past Due Still Accruing Commercial $ 3,546 $ 682 $ 677 $ 4,905 $ 840,048 $ 844,953 $ — Agricultural 791 19 26 836 95,841 96,677 — Real Estate 13,185 881 2,020 16,086 2,623,260 2,639,346 960 Consumer 782 263 54 1,099 371,561 372,660 48 Total $ 18,304 $ 1,845 $ 2,777 $ 22,926 $ 3,930,710 $ 3,953,636 $ 1,008 * The Company monitors commercial, agricultural and real estate loans after such loans are 15 days past due. Consumer loans are monitored after such loans are 30 days past due. The following table details the allowance for loan losses by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at March 31, 2019 and 2018, and December 31, 2018. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. March 31, 2019 Commercial Agricultural Real Estate Consumer Total Loans individually evaluated for impairment $ 1,184 $ 130 $ 2,901 $ 257 $ 4,472 Loans collectively evaluated for impairment 11,291 1,300 28,986 5,536 47,113 Total $ 12,475 $ 1,430 $ 31,887 $ 5,793 $ 51,585 March 31, 2018 Commercial Agricultural Real Estate Consumer Total Loans individually evaluated for impairment $ 1,306 $ 30 $ 2,580 $ 449 $ 4,365 Loans collectively evaluated for impairment 7,971 1,482 29,959 5,722 45,134 Total $ 9,277 $ 1,512 $ 32,539 $ 6,171 $ 49,499 December 31, 2018 Commercial Agricultural Real Estate Consumer Total Loans individually evaluated for impairment $ 1,133 $ 170 $ 2,409 $ 357 $ 4,069 Loans collectively evaluated for impairment 10,815 1,276 29,933 5,109 47,133 Total $ 11,948 $ 1,446 $ 32,342 $ 5,466 $ 51,202 Changes in the allowance for loan losses are summarized as follows by portfolio segment (in thousands): Three months ended March 31 , 2019 Commercial Agricultural Real Estate Consumer Total Beginning balance $ 11,948 $ 1,446 $ 32,342 $ 5,466 $ 51,202 Provision for loan losses 196 (19 ) 397 391 965 Recoveries 649 3 89 141 882 Charge-offs (318 ) — (941 ) (205 ) (1,464 ) Ending balance $ 12,475 $ 1,430 $ 31,887 $ 5,793 $ 51,585 Three months ended March 31 , 2018 Commercial Agricultural Real Estate Consumer Total Beginning balance $ 10,865 $ 1,305 $ 29,896 $ 6,090 $ 48,156 Provision for loan losses (1,627 ) 203 2,434 300 1,310 Recoveries 158 4 242 100 504 Charge-offs (119 ) — (33 ) (319 ) (471 ) Ending balance $ 9,277 $ 1,512 $ 32,539 $ 6,171 $ 49,499 The Company’s recorded investment in loans related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows (in thousands). Purchased credit impaired loans of $859,000, $3,201,000 and $827,000 at March 31, 2019 and 2018, and December 31, 2018, respectively, are included in loans individually evaluated for impairment. March 31, 2019 Commercial Agricultural Real Estate Consumer Total Loans individually evaluated for impairment $ 8,897 $ 831 $ 18,254 $ 526 $ 28,508 Loans collectively evaluated for impairment 817,989 90,505 2,665,953 386,205 3,960,652 Total $ 826,886 $ 91,336 $ 2,684,207 $ 386,731 $ 3,989,160 March 31, 2018 Commercial Agricultural Real Estate Consumer Total Loans individually evaluated for impairment $ 5,351 $ 143 $ 16,161 $ 1,097 $ 22,752 Loans collectively evaluated for impairment 728,805 95,815 2,486,743 395,936 3,707,299 Total $ 734,156 $ 95,958 $ 2,502,904 $ 397,033 $ 3,730,051 December 31, 2018 Commercial Agricultural Real Estate Consumer Total Loans individually evaluated for impairment $ 9,334 $ 759 $ 16,714 $ 727 $ 27,534 Loan collectively evaluated for impairment 835,619 95,918 2,622,632 371,933 3,926,102 Total $ 844,953 $ 96,677 $ 2,639,346 $ 372,660 $ 3,953,636 The Company’s loans that were modified and considered troubled debt restructurings are as follows (in thousands): Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Pre- Modification Post- Modification Pre- Modification Post- Modification Recorded Recorded Recorded Recorded Number Investment Investment Number Investment Investment Commercial 1 $ 157 $ 157 — $ — $ — Agricultural 8 367 367 1 4 4 Real Estate 4 649 649 2 363 363 Consumer — — — 3 74 74 Total 13 $ 1,173 $ 1,173 6 $ 441 $ 441 The balances below provide information as to how the loans were modified as troubled debt restructured loans (in thousands): Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Adjusted Interest Rate Extended Maturity Combined Rate and Maturity Adjusted Interest Rate Extended Maturity Combined Rate and Maturity Commercial $ — $ 157 $ — $ — $ — $ — Agricultural — 102 265 — — 4 Real Estate — 201 448 — — 363 Consumer — — — — — 74 Total $ — $ 460 $ 713 $ — $ — $ 441 During the three months ended March 31, 2019 and 2018, no loans were modified as a troubled debt restructured loan within the previous 12 months and for which there was a payment default. A default for purposes of this disclosure is a troubled debt restructured loan in which the borrower is 90 days past due or more or results in the foreclosure and repossession of the applicable collateral. As of March 31, 2019, the Company has no commitments to lend additional funds to loan customers whose terms have been modified in troubled debt restructurings. Our subsidiary bank has established a line of credit with the Federal Home Loan Bank of Dallas (FHLB) to provide liquidity and meet pledging requirements for those customers eligible to have securities pledged to secure certain uninsured deposits. At March 31, 2019, $2,519,715,000 in loans held by our bank subsidiary were subject to blanket liens as security for this line of credit. At March 31, 2019, there were no advances or letters of credit outstanding under this line of credit. |
Loans Held for Sale
Loans Held for Sale | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Loans Held for Sale | Note 6 – Loans Held for Sale The Company originates certain mortgage loans for sale in the secondary market. The mortgage loan sales contracts contain indemnification clauses should the loans default, generally in the first three to nine months, or if documentation is determined not to be in compliance with regulations. The Company’s historic losses as a result of these indemnities have been insignificant. Loans held for sale totaled $14,446,000, $17,030,000 and $21,672,000 at March 31, 2019 and 2018, and December 31, 2018, respectively. At March 31, 2019 and December 31, 2018, $2,439,000 and $2,487,000 are valued at the lower of cost or fair value, and the remaining amounts are valued under the fair value option. All of the amounts for March 31, 2018 were valued at the lower of cost or fair value. The change to the fair value option for loans held for sale was effective at June 30, 2018 and was done in conjunction with the Company’s move to mandatory delivery in the secondary market and the purchase of forward mortgage-backed securities to manage the changes in fair value (see note 7 for additional information). These loans, which are sold on a servicing released basis, are valued using a market approach by utilizing either: (i) the fair value of the securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. As these prices are derived from market observable inputs, the Company classifies these valuations as Level 2 in the fair value disclosures (see note 12). Interest income on mortgage loans held for sale is recognized based on the contractual rates and reflected in interest income on loans in the consolidated statements of earnings. The Company has no continuing ownership in any residential mortgage loans sold. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 7 – Derivative Financial Instruments The Company enters into interest rate lock commitments (“IRLCs”) with customers to originate residential mortgage loans at a specific interest rate that are ultimately sold in the secondary market. These commitments, which contain fixed expiration dates, offer the borrower an interest rate guarantee provided the loan meets underwriting guidelines and closes within the timeframe established by the Company. Beginning in the second quarter of 2018, the Company purchased forward mortgage-backed securities contracts to manage the changes in fair value associated with changes in interest rates related to a portion of the IRLCs. These instruments are typically entered into at the time the IRLC is made. These financial instruments are not designated as hedging instruments and are used for asset and liability management needs. All derivatives are carried at fair value in either other assets or other liabilities. The fair values of IRLCs are based on current secondary market prices for underlying loans and estimated servicing value with similar coupons, maturity and credit quality, subject to the anticipated loan funding probability (pull-through rate). The fair value of IRLCs is subject to change primarily due to changes in interest rates and the estimated pull-through rate. These commitments are classified as Level 2 in the fair value disclosures (see note 12), as the valuations are based on observable market inputs. Forward mortgage-backed securities contracts are exchange-traded or traded within highly active dealer markets. In order to determine the fair value of these instruments, the Company utilizes the exchange price or dealer market price for the particular derivative contract and these instruments are therefore classified as Level 2 in the fair value disclosures (see note 12). The estimated fair values are subject to change primarily due to changes in interest rates. The following table provides the outstanding notional balances and fair values of outstanding derivative positions (dollars in thousands): March 31, 2019: Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value IRLCs $ 60,679 $ 1,299 $ — Forward mortgage-backed securities trades 64,500 — 301 March 31, 2018: Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value IRLCs $ 63,090 $ 500 $ — December 31, 2018: Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value IRLCs $ 37,088 $ 765 $ — Forward mortgage-backed securities trades 45,500 — 403 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | Note 8 – Borrowings Borrowings consisted of the following (dollars in thousands): March 31, December 31, 2019 2018 2018 Securities sold under agreements with customers to repurchase $ 378,161 $ 358,210 $ 409,631 Federal funds purchased 4,550 13,945 4,075 Advances from Federal Home Loan Bank of Dallas — — 55,000 Total $ 382,711 $ 372,155 $ 468,706 Securities sold under repurchase agreements are generally with significant customers of the Company that require short-term liquidity for their funds for which the Company pledges certain securities that have a fair value equal to at least the amount of the borrowings. The agreements mature daily and therefore the risk arising from a decline in the fair value of the collateral pledged is minimal. The securities pledged are mortgage-backed securities. These agreements do not include “right of set-off” provisions and therefore the Company does not offset such agreements for financial reporting purposes. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 – Income Taxes Income tax expense was $ 7,367 6,245 |
Stock Option Plan and Restricte
Stock Option Plan and Restricted Stock Plan | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Plan and Restricted Stock Plan | Note 10 – Stock Option Plan and Restricted Stock Plan The Company grants incentive stock options for a fixed number of shares with an exercise price equal to the fair value of the shares at the date of grant to employees. No options were granted in 2018 or through March 31, 2019. The Company recorded stock option expense totaling $312,000 and $377,000 for the three-month periods ended March 31, 2019 and 2018, respectively. The additional disclosure requirements under authoritative accounting guidance have been omitted due to the amounts being insignificant. On April 25, 2017, upon re-election of existing directors, 14,650 restricted shares with a total value of $600,000 were granted to the ten non-employee directors and were expensed over the period from the grant date to April 24, 2018, the date of the next annual shareholders’ meeting at which these directors’ term expired. On April 24, 2018, upon re-election of nine of the existing directors, 10,710 restricted shares with a total value of $540,000 were granted to these non-employee directors and were expensed over the period from grant date to April 23, 2019, the date of the next annual shareholders’ meeting at which each director’s term expired. The Company recorded director expense related to these restricted share grants of $135,000 and $150,000 for the three-month periods ended March 31, 2019 and 2018, respectively. On April 23, 2019, upon re-election of nine of the existing directors and two new directors, 10,857 restricted shares with a total value of $660,000 were granted to these non-employee directors and will be expensed over the period from the grant date to April 28, 2020, the Company’s next annual shareholders’ meeting at which each director’s term expires. On October 27, 2015, the Company granted 31,273 restricted shares with a total value of $1,060,000 to certain officers was being expensed over the vesting period of three years. On October 25, 2016, the Company granted 15,405 restricted stock shares with a total value of $560,000 to certain officers that is being expensed over the vesting period of three years. On October 24, 2017, the Company granted 14,191 restricted shares with a total value of $655,000 to certain officers that is being expensed over the vesting period of one to three years. On October 23, 2018, the Company granted 26,021 restricted shares with a total value of $1,440,000 to certain officers that will be expensed over a three-year vesting period. The Company recorded restricted stock expense for officers of $205,000 and $167,000, for the three-month periods ended March 31, 2019 and 2018, respectively. |
Pension Plan
Pension Plan | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension Plan | Note 11 – Pension Plan The Company’s defined benefit pension plan was frozen effective January 1, 2004, whereby no new participants were added to the plan and no additional years of service were accrued to participants. The pension plan covered substantially all of the Company’s employees at the time. The benefits for each employee were based on years of service and a percentage of the employee’s qualifying compensation during the final years of employment. The Company’s funding policy was and is to contribute annually the amount necessary to satisfy the Internal Revenue Service’s funding standards. As a result of its evaluation of its funding status, the Company made no contribution in 2018, and has not made a contribution through March 31, 2019. In December 2018, due to the rising interest rate environment, the Company determined it was in the best interest of its shareholders to settle its pension obligation to its retiree group in payout, approximately 53% of the pension benefit obligation on that date, and recorded a loss on settlement totaling $1,546,000 for the year ended December 31, 2018. In 2019, the Company began steps to terminate and settle the remaining obligation in its pension plan. In addition, the Company had a multiple employer pension plan related to its acquisition of Orange Savings Bank in 2013. This plan is also frozen. During the first quarter of 2019, the Company made a decision to remove this plan from the multiple employer plan and merge it into the Company’s existing pension plan. The Company recorded $900,000 in pension merger expense for the three months ended March 31, 2019 in connection with this merger of the Orange pension plan. Net periodic benefit costs totaling $923,000 and $56,000 were recorded for the three months ended March 31, 2019 and 2018, respectively, which includes the Orange merger costs discussed above. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Note 12 – Fair Value Disclosures The authoritative accounting guidance for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The authoritative accounting guidance requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: • Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 Inputs – Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Securities classified as available-for-sale and trading are reported at fair value utilizing Level 1 and Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market spreads, cash flows, the United States Treasury yield curve, live trading levels, trade execution data, dealer quotes, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other items. See notes 6 and 7 related to the determination of fair value for loans held-for-sale, IRLCs and forward mortgage-backed securities trades. There were no transfers between Level 1 and Level 2 or Level 2 and Level 3 during the three months ended March 31, 2019 and 2018, and the year ended December 31, 2018. The following table summarizes the Company’s available-for-sale securities which are measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands): March 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Available-for-sale investment securities: U.S. Treasury securities $ 9,991 $ — $ — $ 9,991 Obligations of states and political subdivisions — 1,239,730 — 1,239,730 Corporate bonds — 456 — 456 Residential mortgage-backed securities — 1,516,288 — 1,516,288 Commercial mortgage-backed securities — 441,944 — 441,944 Other securities 4,403 — — 4,403 Total $ 14,394 $ 3,198,418 $ — $ 3,212,812 Loans held-for-sale $ — $ 12,007 $ — $ 12,007 IRLCs $ — $ 1,299 $ — $ 1,299 Forward mortgage-backed securities trades $ — $ 301 $ — $ 301 March 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Available-for-sale investment securities: Obligations of U. S. government sponsored enterprises and agencies $ — $ 50,215 $ — $ 50,215 Obligations of states and political subdivisions — 1,320,133 — 1,320,133 Corporate bonds — 4,971 — 4,971 Residential mortgage-backed securities — 1,427,772 — 1,427,772 Commercial mortgage-backed securities — 468,746 — 468,746 Other securities 4,356 — — 4,356 Total $ 4,356 $ 3,271,837 $ — $ 3,276,193 IRLCs $ — $ 500 $ — $ 500 December 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Available-for-sale investment securities: U.S. Treasury securities $ 9,962 $ — $ — $ 9,962 Obligations of U. S. government sponsored enterprises and agencies — 301 — 301 Obligations of states and political subdivisions — 1,257,871 — 1,257,871 Corporate bonds — 450 — 450 Residential mortgage-backed securities — 1,454,545 — 1,454,545 Commercial mortgage-backed securities — 431,300 — 431,300 Other securities 4,348 — — 4,348 Total $ 14,310 $ 3,144,467 $ — $ 3,158,777 Loans held-for-sale $ — $ 19,185 $ — $ 19,185 IRLCs $ — $ 765 $ — $ 765 Forward mortgage-backed securities trades $ — $ 403 $ — $ 403 Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets and financial liabilities measured at fair value on a non-recurring basis include the following at March 31, 2019: Impaired Loans – Impaired loans are reported at the fair value of the underlying collateral less selling costs if repayment is expected solely from the collateral. Collateral values are estimated using Level 2 inputs based on observable market data. At March 31, 2019, impaired loans with a carrying value of $15,729,000 were reduced by specific valuation reserves totaling $4,472,000 resulting in a net fair value of $11,257,000. The Company also had impaired loans of $12,779,000 with no specific valuation reserve at March 31, 2019, due to the loans carrying value generally being lower than the value of the collateral associated with the loan. Loans Held-for-Sale – Loans held-for-sale are reported at the lower of cost or fair value. The Company originates conforming loans that are sold in the secondary market in which loan pricing is available. These loans are considered Level 2 of the fair value hierarchy. See note 6 related to the determination of fair value. At March 31, 2019, these loans were reported at $2,439,000 and had a fair value of $2,505,000. IRLC’s and Forward Mortgage-Backed Securities Trades – IRLCs and forward mortgage-backed securities trades are reported at fair value (see note 7). Certain non-financial assets and non-financial liabilities measured at fair value on a non-recurring basis include other real estate owned, goodwill and other intangible assets and other non-financial long-lived assets. Non-financial assets measured at fair value on a non-recurring basis during the three months ended March 31, 2019 and 2018 include other real estate owned which, subsequent to their initial transfer to other real estate owned from loans, were re-measured at fair value through a write-down included in gain (loss) on sale of foreclosed assets. During the reported periods, all fair value measurements for foreclosed assets utilized Level 2 inputs based on observable market data, generally third-party appraisals, or Level 3 inputs based on customized discounting criteria. These appraisals are evaluated individually and discounted as necessary due to the age of the appraisal, lack of comparable sales, expected holding periods of property or special use type of the property. Such discounts vary by appraisal based on the above factors but generally range from 5% to 25% of the appraised value. Re-evaluation of other real estate owned is performed at least annually as required by regulatory guidelines or more often if particular circumstances arise. There were no other real estate owned properties that were re-measured subsequent to their initial transfer to other real estate owned during the three months ended March 31, 2019 and 2018. At March 31, 2019 and 2018, and December 31, 2018, other real estate owned totaled $612,000, $1,179,000 and $448,000, respectively. The Company is required under current authoritative accounting guidance to disclose the estimated fair value of their financial instrument assets and liabilities including those subject to the requirements discussed above. For the Company, as for most financial institutions, substantially all of its assets and liabilities are considered financial instruments. Many of the Company’s financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. Cash and due from banks, federal funds sold, interest-bearing deposits and time deposits in banks and accrued interest receivable and payable are liquid in nature and considered Levels 1 or 2 of the fair value hierarchy. Financial instruments with stated maturities have been valued using a present value discounted cash flow with a discount rate approximating current market for similar assets and liabilities and are considered Levels 2 and 3 of the fair value hierarchy. Financial instrument liabilities with no stated maturities have an estimated fair value equal to both the amount payable on demand and the carrying value and are considered Level 1 of the fair value hierarchy. The carrying value and the estimated fair value of the Company’s contractual off-balance-sheet unfunded lines of credit, loan commitments and letters of credit, which are generally priced at market at the time of funding, are not material. The estimated fair values and carrying values of all financial instruments under current authoritative guidance, were as follows (in thousands). March 31, December 31, 2019 2018 2018 Carrying Estimated Carrying Estimated Carrying Estimated Fair Value Value Fair Value Value Fair Value Value Fair Value Hierarchy Cash and due from banks $ 176,278 $ 176,278 $ 130,979 $ 130,979 $ 207,835 $ 207,835 Level 1 Federal funds sold 12,825 12,825 — — — — Level 1 Interest-bearing deposits in banks 197,758 197,758 67,060 67,060 40,812 40,812 Level 1 Interest-bearing time deposits in banks 1,458 1,458 1,458 1,458 1,458 1,458 Level 2 Available-for-sale securities 3,212,812 3,212,812 3,276,193 3,276,193 3,158,777 3,158,777 Levels 1 and 2 Loans Held for investment 3,937,575 3,973,329 3,680,552 3,701,919 3,902,434 3,947,391 Level 3 Loans held for sale 14,446 14,512 17,030 17,068 21,672 21,779 Level 3 Accrued interest receivable 29,372 29,372 28,631 28,631 36,765 36,765 Level 2 Deposits with stated maturities 441,393 441,433 468,078 469,000 442,161 441,727 Level 2 Deposits with no stated maturities 5,909,348 5,909,348 5,722,685 5,722,685 5,738,228 5,738,228 Level 1 Borrowings 382,711 382,711 372,155 372,155 468,706 468,706 Level 2 Accrued interest payable 575 575 195 195 408 408 Level 2 IRLC’s 1,299 1,299 500 500 765 765 Level 2 Forward mortgage backed securities trades 301 301 — — 403 403 Level 2 |
Recently Issued Authoritative A
Recently Issued Authoritative Accounting Guidance | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Authoritative Accounting Guidance | Note 13 – Recently Issued Authoritative Accounting Guidance Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers .” ASU 2014-09 implemented a comprehensive new revenue recognition standard that supersedes substantially all existing revenue recognition guidance. The new standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity applies the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2015-4 “Revenue from Contracts with Customers – Deferral of the Effective Date” deferred the effective date of ASU 2014-09 by one year and as a result, the new standard became effective in the first quarter of 2018. The Company’s revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. The adoption of the new standard in the first quarter of 2018 did not have a significant impact on the Company’s financial statements and no adjustment to opening retained earnings was recorded. ASU 2016-01, ASU 2016-01 “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities .” ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplified the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminated the requirement for public business entities to disclose the methods 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, (iv) required public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) required an entity to present separately in other comprehensive income 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, (vi) required separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarified that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. ASU 2016-1 became effective for the Company on January 1, 2018 and did not have a significant impact on the Company’s financial statements. ASU 2016-02, “Leases .” ASU 2016-02 amended current lease accounting to require lessees to recognize (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and (ii) 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. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model. The amended guidance became effective in the first quarter of 2019 and required transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company evaluated the provisions of the new lease standard and, due to the small dollar amounts and number of lease agreements, the effect for the Company on January 1, 2019 was not significant. ASU 2016-13, “Financial Instruments – Credit Losses .” ASU 2016-13 implements a comprehensive change in estimating the allowances for loan losses from the current model of losses inherent in the loan portfolio to a current expected credit loss model that generally is expected to result in earlier recognition of allowances for losses. ASU 2016-13 requires 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 measurement of expected credit losses is 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. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Additionally, available for sale debt securities may realize value either through collection of contractual cash flows or through sale of the security at fair value. ASU 2016-13 will be effective for the Company as of January 1, 2020. The Company has formed a working group comprised of individuals from various functional areas including credit, risk management, finance and information technology, among others to assist in the implementation of ASU 2016-13. The Company is currently working through an implementation plan that includes assessment of processes, portfolio segmentation and model development. Additionally, the Company is working with a third-party vendor to assist with implementation and model development. The Company continues to evaluate the potential impact of ASU 2016-13 on the Company’s financial statements. ASU 2017-04, “Intangibles – Goodwill and Other .” ASU 2017-04 will amend and simplify current goodwill impairment testing to eliminate Step 2 from the current provisions. Under the new guidance, an entity should perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying value and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if a quantitative impairment test is necessary. ASU 2017-04 will be effective for the Company on January 1, 2020 and is not expected to have a significant impact on the Company’s financial statements. ASU 2017-07, “Compensation – Retirement Benefits, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost .” ASU 2017-17 will require employers that sponsor defined benefit pension plans to present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Other components of the net periodic benefit cost will be presented separately from the service cost component. ASU 2017-17 became effective in 2018 and, as the Company froze its defined benefit pension plan in 2004, there is no service cost component of its net periodic benefit cost and therefore did not have an impact on the Company’s financial statements. ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 was issued to address the income tax accounting treatment of the stranded tax effects within other comprehensive income due to the prohibition of backward tracing due to an income tax rate change that was initially recorded in other comprehensive income. This issue came about from the enactment of the Tax Cuts and Jobs Act on December 22, 2017 that changed the Company’s income tax rate from 35% to 21%. The ASU changed current accounting whereby an entity may elect to reclassify the stranded tax effect from accumulated other comprehensive income to retained earnings. The ASU was effective for periods beginning after December 15, 2018 although early adoption was permitted. The Company early adopted ASU 2018-02 in the first quarter of 2018 and reclassified its stranded tax debit of $5,759,000 within accumulated other comprehensive income to retained earnings. ASU 2018-13, “Fair Value Measurement (Topic 820) — Changes to the Disclosure Requirements for Fair Value Measurement ASU 2018-14, “Compensation – Retirement Benefit Plans – General (Subtopic 715-20).” ASU 2018-14 changes the disclosure requirement for employers that sponsor defined benefit pension and/or other post- retirement benefit plans, eliminating certain disclosures no longer considered cost beneficial and requiring new disclosures now considered more pertinent. ASU 2018-14 will be effective for the year ending December 31, 2020. |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisition | Note 14 – Acquisition On October 12, 2017, we entered into an agreement and plan of reorganization to acquire Commercial Bancshares, Inc. and its wholly owned bank subsidiary, Commercial State Bank, Kingwood, Texas. On January 1, 2018, the transaction was completed. Pursuant to the agreement, we issued 1,289,371 shares of the Company’s common stock in exchange for all of the outstanding shares of Commercial Bancshares, Inc. In addition, Commercial Bancshares, Inc. made a $22,075,000 special dividend to its shareholders prior to closing of the transaction, which was increased for the amount by which Commercial Bancshares, Inc.’s consolidated shareholders’ equity as of January 1, 2018 exceeded $42,402,000, after certain adjustments per the merger agreement. At closing, Commercial Bancshares, Inc. was merged into the Company and Commercial State Bank, Kingwood, Texas, was merged into First Financial Bank, National Association, Abilene, Texas, a wholly owned subsidiary of the Company. The primary purpose of the acquisition was to expand the Company’s market share around Houston. Factors that contributed to a purchase price resulting in goodwill include Commercial State Bank’s record of earnings, strong management and board of directors, strong local economic environment and opportunity for growth. The results of operations from this acquisition are included in the consolidated earnings of the Company commencing January 1, 2018. The following table presents the amounts recorded on the con solidated balance sheet on the acquisition date (dollars in thousands): Fair value of consideration paid: Common stock issued (1,289,371 shares) $ 58,087 Fair value of identifiable assets acquired: Cash and cash equivalents 18,653 Securities available-for-sale 64,501 Loans 266,327 Identifiable intangible assets 3,167 Other assets 15,375 Total identifiable assets acquired 368,023 Fair value of liabilities assumed: Deposits 341,902 Other liabilities (373 ) Total liabilities assumed 341,529 Fair value of net identifiable assets acquired 26,494 Goodwill resulting from acquisition $ 31,593 Goodwill recorded in the acquisition was accounted for in accordance with the authoritative business combination guidance. Accordingly, goodwill will not be amortized but will be tested for impairment annually. The goodwill recorded is not deductible for federal income tax purposes. The fair value of total loans acquired was $266,327,000 at acquisition compared to contractual amounts of $271,714,000. The fair value of purchased credit impaired loans at acquisition was $3,013,000 compared to contractual amounts of $3,806,000. Additional purchased credit impaired loan disclosures were omitted due to immateriality. All other acquired loans were considered performing loans. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Investment Securities | Management classifies debt and equity securities as held-to-maturity, available-for-sale, or trading based on its intent. Debt securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity and recorded at cost, adjusted for amortization of premiums and accretion of discounts, which are recognized as adjustments to interest income using the interest method. Debt securities not classified as held-to-maturity or trading are classified as available-for-sale and recorded at fair value, with all unrealized gains and unrealized losses judged to be temporary, net of deferred income taxes, excluded from earnings and reported in the consolidated statements of comprehensive earnings. When the fair value of a debt security is below its amortized cost, and depending on the length of time the condition exists and the extent the fair value is below amortized cost, additional analysis is performed to determine whether an other-than-temporary impairment condition exists. Available-for-sale and held-to-maturity debt securities are analyzed quarterly for possible other-than-temporary impairment. The analysis considers (i) whether we have the intent to sell our debt securities prior to recovery and/or maturity, (ii) whether it is more likely than not that we will have to sell our debt securities prior to recovery and/or maturity, (iii) the length of time and extent to which the fair value has been less than amortized cost, and (iv) the financial condition of the issuer. Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment. If actual information or conditions are different than estimated, the extent of the impairment of the debt security may be different than previously estimated, which could have a material effect on the Company’s results of operations and financial condition. The Company’s investment portfolio consists of U.S. Treasury securities, obligations of U.S. government sponsored enterprises and agencies, obligations of state and political subdivisions, mortgage pass-through securities, corporate bonds and general obligation or revenue based municipal bonds. Pricing for such securities is generally readily available and transparent in the market. The Company utilizes independent third-party pricing services to value its investment securities, which the Company reviews as well as the underlying pricing methodologies for reasonableness and to ensure such prices are aligned with pricing matrices. The Company validates prices supplied by the independent pricing services by comparison to prices obtained from other third-party sources on a quarterly basis. |
Loans and Allowance for Loan Losses | Loans held for investment are stated at the amount of unpaid principal, reduced by unearned income and an allowance for loan losses. Interest on loans is calculated by using the simple interest method on daily balances of the principal amounts outstanding. The Company defers and amortizes net loan origination fees and costs as an adjustment to yield. The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes the collectability of the principal is unlikely. The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on an annual basis and makes changes as appropriate. Management receives and reviews monthly reports related to loan originations, quality, concentrations, delinquencies, nonperforming and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geographic location. Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and effectively. Underwriting standards are designed to determine whether the borrower possesses sound business ethics and practices and to evaluate current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and include personal guarantees. Agricultural loans are subject to underwriting standards and processes similar to commercial loans. These agricultural loans are based primarily on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. Most agricultural loans are secured by the agriculture related assets being financed, such as farm land, cattle or equipment, and include personal guarantees. Real estate loans are also subject to underwriting standards and processes similar to commercial and agricultural loans. These loans are underwritten primarily based on projected cash flows and, secondarily, as loans secured by real estate. The repayment of real estate loans is generally largely dependent on the successful operation of the property securing the loans or the business conducted on the property securing the loan. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are generally diverse in terms of type and geographic location within Texas. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry. Generally, real estate loans are owner occupied which further reduces the Company’s risk. Consumer loan underwriting utilizes methodical credit standards and analysis to supplement the Company’s underwriting policies and procedures. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimize the Company’s risk. The allowance for loan losses is an amount which represents management’s best estimate of probable losses that are inherent in the Company’s loan portfolio as of the balance sheet date. The allowance for loan losses is comprised of three elements: (i) specific reserves determined based on probable losses on specific classified loans; (ii) a historical valuation reserve component that considers historical loss rates and estimated loss emergence periods; and (iii) qualitative reserves based upon general economic conditions and other qualitative risk factors both internal and external to the Company. The allowance for loan losses is increased by charges to income and decreased by charge-offs (net of recoveries). Management’s periodic evaluation of the appropriateness of the allowance is based on general economic conditions, the financial condition of borrowers, the value and liquidity of collateral, delinquency, prior loan loss experience, and the results of periodic reviews of the portfolio. For purposes of determining our historical valuation reserve, the loan portfolio, less cash secured loans, government guaranteed loans and classified loans, is multiplied by the Company’s historical loss rate adjusted for the estimated loss emergence period. Specific allocations are increased or decreased in accordance with deterioration or improvement in credit quality and a corresponding increase or decrease in risk of loss on a particular loan. In addition, we adjust our allowance for qualitative factors such as current local economic conditions and trends, including, without limitations, unemployment, oil and gas prices, drought conditions, changes in lending staff, policies and procedures, changes in credit concentrations, changes in the trends and severity of problem loans and changes in trends in volume and terms of loans. This qualitative reserve serves to estimate for additional areas of losses inherent in our portfolio that are not reflected in our historic loss factors. Although we believe we use the best information available to make loan loss allowance determinations, future adjustments could be necessary if circumstances or economic conditions differ substantially from the assumptions used in making our initial determinations. A decline in the economy could result in increased levels of non-performing assets and charge-offs, increased loan provisions and reductions in income. Additionally, bank regulatory agencies periodically review our allowance for loan losses and methodology and could require, in accordance with U.S. GAAP, additional provisions to the allowance for loan losses based on their judgment of information available to them at the time of their examination as well as changes to our methodology. Accrual of interest is discontinued on a loan and payments are applied to principal when management believes, after considering economic and business conditions and collection efforts, the borrower’s financial condition is such that collection of interest is doubtful. Except consumer loans, generally all loans past due greater than 90 days, based on contractual terms, are placed on non-accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Consumer loans are generally charged-off when a loan becomes past due 90 days. For other loans in the portfolio, facts and circumstances are evaluated in making charge-off decisions. Loans are considered impaired when, based on current information and events, management determines that it is probable we will be unable to collect all amounts due in accordance with the loan agreement, including scheduled principal and interest payments. If a loan is impaired, a specific valuation allowance is allocated, if necessary. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectable. The Company’s policy requires measurement of the allowance for an impaired, collateral dependent loan based on the fair value of the collateral less cost to sell. Other loan impairments for non-collateral dependent loans are measured based on the present value of expected future cash flows or the loan’s observable market price. At March 31, 2019 and 2018 and December 31, 2018, all significant impaired loans have been determined to be collateral dependent and the allowance for loss has been measured utilizing the estimated fair value of the collateral less cost to sell. From time to time, the Company modifies its loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by the Company that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. For all impaired loans, including the Company’s troubled debt restructurings, the Company performs a periodic, well-documented credit evaluation of the borrower’s financial condition and prospects for repayment to assess the likelihood that all principal and interest payments required under the terms of the agreement will be collected in full. When doubt exists about the ultimate collectability of principal and interest, the troubled debt restructuring remains on non-accrual status and payments received are applied to reduce principal to the extent necessary to eliminate such doubt. This determination of accrual status is judgmental and is based on facts and circumstances related to each troubled debt restructuring. Each of these loans is individually evaluated for impairment and a specific reserve is recorded based on probable losses, taking into consideration the related collateral, modified loan terms and cash flow. As of March 31, 2019 and 2018 and December 31, 2018, substantially all of the Company’s troubled debt restructured loans are included in the non-accrual totals. Loans acquired, including loans acquired in a business combination, are initially recorded at fair value with no valuation allowance. Acquired loans are segregated between those considered to be credit impaired and those deemed performing. To make this determination, management considers such factors as past due status, non-accrual status and credit risk ratings. The fair value of acquired performing loans is determined by discounting expected cash flows, both principal and interest, at prevailing market interest rates. The difference between the fair value and principal balances at acquisition date, the fair value discount, is accreted into interest income over the estimated life of the acquired portfolio. Purchased credit impaired loans are those loans that showed evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all amounts contractually owed. Their acquisition fair value, which includes a credit component at the acquisition date, was based on the estimate of cash flows, both principal and interest, expected to be collected or estimated collateral values if cash flows are not estimable, discounted at prevailing market rates of interest. The difference between the discounted cash flows expected at acquisition and the investment in the loan is recognized as interest income on a level-yield method over the life of the loan, unless management was unable to reasonably forecast cash flows in which case the loans were placed on nonaccrual. Subsequent to the acquisition date, increases in expected cash flows will generally result in a recovery of any previously recorded allowance for loan loss, to the extent applicable, and/or a reclassification from the nonaccretable difference to accretable yield, which will be recognized prospectively. Decreases in expected cash flows subsequent to acquisition are recognized as impairment. Valuation allowances on these impaired loans reflect only losses incurred after the acquisition. The carrying amount of purchased credit impaired loans at March 31, 2019 and 2018 and December 31, 2018 were $859,000, $3,201,000 and $827,000, respectively, compared to a contractual balance of $1,196,000, $4,129,000 and $1,157,000, respectively. Other purchased credit impaired loan disclosures were omitted due to immateriality. |
Fair Value Disclosures | The authoritative accounting guidance for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The authoritative accounting guidance requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: • Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 Inputs – Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Securities classified as available-for-sale and trading are reported at fair value utilizing Level 1 and Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market spreads, cash flows, the United States Treasury yield curve, live trading levels, trade execution data, dealer quotes, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other items. |
Recently Issued Authoritative Accounting Guidance | Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers .” ASU 2014-09 implemented a comprehensive new revenue recognition standard that supersedes substantially all existing revenue recognition guidance. The new standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity applies the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2015-4 “Revenue from Contracts with Customers – Deferral of the Effective Date” deferred the effective date of ASU 2014-09 by one year and as a result, the new standard became effective in the first quarter of 2018. The Company’s revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. The adoption of the new standard in the first quarter of 2018 did not have a significant impact on the Company’s financial statements and no adjustment to opening retained earnings was recorded. ASU 2016-01, ASU 2016-01 “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities .” ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplified the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminated the requirement for public business entities to disclose the methods 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, (iv) required public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) required an entity to present separately in other comprehensive income 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, (vi) required separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarified that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. ASU 2016-1 became effective for the Company on January 1, 2018 and did not have a significant impact on the Company’s financial statements. ASU 2016-02, “Leases .” ASU 2016-02 amended current lease accounting to require lessees to recognize (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and (ii) 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. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model. The amended guidance became effective in the first quarter of 2019 and required transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company evaluated the provisions of the new lease standard and, due to the small dollar amounts and number of lease agreements, the effect for the Company on January 1, 2019 was not significant. ASU 2016-13, “Financial Instruments – Credit Losses .” ASU 2016-13 implements a comprehensive change in estimating the allowances for loan losses from the current model of losses inherent in the loan portfolio to a current expected credit loss model that generally is expected to result in earlier recognition of allowances for losses. ASU 2016-13 requires 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 measurement of expected credit losses is 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. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Additionally, available for sale debt securities may realize value either through collection of contractual cash flows or through sale of the security at fair value. ASU 2016-13 will be effective for the Company as of January 1, 2020. The Company has formed a working group comprised of individuals from various functional areas including credit, risk management, finance and information technology, among others to assist in the implementation of ASU 2016-13. The Company is currently working through an implementation plan that includes assessment of processes, portfolio segmentation and model development. Additionally, the Company is working with a third-party vendor to assist with implementation and model development. The Company continues to evaluate the potential impact of ASU 2016-13 on the Company’s financial statements. ASU 2017-04, “Intangibles – Goodwill and Other .” ASU 2017-04 will amend and simplify current goodwill impairment testing to eliminate Step 2 from the current provisions. Under the new guidance, an entity should perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying value and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if a quantitative impairment test is necessary. ASU 2017-04 will be effective for the Company on January 1, 2020 and is not expected to have a significant impact on the Company’s financial statements. ASU 2017-07, “Compensation – Retirement Benefits, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost .” ASU 2017-17 will require employers that sponsor defined benefit pension plans to present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Other components of the net periodic benefit cost will be presented separately from the service cost component. ASU 2017-17 became effective in 2018 and, as the Company froze its defined benefit pension plan in 2004, there is no service cost component of its net periodic benefit cost and therefore did not have an impact on the Company’s financial statements. ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU 2018-02 was issued to address the income tax accounting treatment of the stranded tax effects within other comprehensive income due to the prohibition of backward tracing due to an income tax rate change that was initially recorded in other comprehensive income. This issue came about from the enactment of the Tax Cuts and Jobs Act on December 22, 2017 that changed the Company’s income tax rate from 35% to 21%. The ASU changed current accounting whereby an entity may elect to reclassify the stranded tax effect from accumulated other comprehensive income to retained earnings. The ASU was effective for periods beginning after December 15, 2018 although early adoption was permitted. The Company early adopted ASU 2018-02 in the first quarter of 2018 and reclassified its stranded tax debit of $5,759,000 within accumulated other comprehensive income to retained earnings. ASU 2018-13, “Fair Value Measurement (Topic 820) — Changes to the Disclosure Requirements for Fair Value Measurement ASU 2018-14, “Compensation – Retirement Benefit Plans – General (Subtopic 715-20).” ASU 2018-14 changes the disclosure requirement for employers that sponsor defined benefit pension and/or other post- retirement benefit plans, eliminating certain disclosures no longer considered cost beneficial and requiring new disclosures now considered more pertinent. ASU 2018-14 will be effective for the year ending December 31, 2020. |
Interest-bearing Time Deposit_2
Interest-bearing Time Deposits in Banks and Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Available-for-Sale Securities | A summary of the Company’s available-for-sale securities follows (in thousands): March 31, 2019 Gross Gross Amortized Unrealized Unrealized Estimated Cost Basis Holding Gains Holding Losses Fair Value U.S. Treasury securities $ 9,977 $ 14 $ — $ 9,991 Obligations of states and political subdivisions 1,196,111 44,155 (536 ) 1,239,730 Corporate bonds and other 4,874 — (15 ) 4,859 Residential mortgage-backed securities 1,519,004 8,506 (11,222 ) 1,516,288 Commercial mortgage-backed securities 442,569 1,771 (2,396 ) 441,944 Total securities available-for-sale $ 3,172,535 $ 54,446 $ (14,169 ) $ 3,212,812 March 31, 2018 Gross Gross Amortized Unrealized Unrealized Estimated Cost Basis Holding Gains Holding Losses Fair Value Obligations of U.S. government sponsored enterprises and agencies $ 50,467 $ — $ (252 ) $ 50,215 Obligations of states and political subdivisions 1,289,886 33,014 (2,767 ) 1,320,133 Corporate bonds and other 9,382 — (55 ) 9,327 Residential mortgage-backed securities 1,449,482 2,912 (24,622 ) 1,427,772 Commercial mortgage-backed securities 476,060 235 (7,549 ) 468,746 Total securities available-for-sale $ 3,275,277 $ 36,161 $ (35,245 ) $ 3,276,193 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Estimated Cost Basis Holding Gains Holding Losses Fair Value U.S. Treasury securities $ 9,970 $ — $ (8 ) $ 9,962 Obligations of U.S. government sponsored enterprises and agencies 301 — — 301 Obligations of states and political subdivisions 1,229,828 30,013 (1,970 ) 1,257,871 Corporate bonds and other 4,875 — (77 ) 4,798 Residential mortgage-backed securities 1,472,228 3,928 (21,611 ) 1,454,545 Commercial mortgage-backed securities 436,366 670 (5,736 ) 431,300 Total securities available-for-sale $ 3,153,568 $ 34,611 $ (29,402 ) $ 3,158,777 |
Amortized Cost and Estimated Fair Value of Available-for-Sale Securities | The amortized cost and estimated fair value of available-for-sale securities at March 31, 2019, by contractual and expected maturity, are shown below (in thousands): Amortized Estimated Cost Basis Fair Value Due within one year $ 176,257 $ 177,722 Due after one year through five years 554,136 575,051 Due after five years through ten years 478,849 499,689 Due after ten years 1,720 2,118 Mortgage-backed securities 1,961,573 1,958,232 Total $ 3,172,535 $ 3,212,812 |
Continuous Unrealized-Loss Position of Available-for-Sale Securities | The following tables disclose the Company’s investment securities that have been in a continuous unrealized-loss position for less than 12 months and for 12 or more months (in thousands): Less than 12 Months 12 Months or Longer Total March 31, 2019 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Obligations of states and political subdivisions $ 2,807 $ 13 $ 48,068 $ 523 $ 50,875 $ 536 Corporate bonds and other — — 4,873 15 4,873 15 Residential mortgage-backed securities 2,473 17 854,482 11,205 856,955 11,222 Commercial mortgage-backed securities — — 303,637 2,396 303,637 2,396 Total $ 5,280 $ 30 $ 1,211,060 $ 14,139 $ 1,216,340 $ 14,169 Less than 12 Months 12 Months or Longer Total March 31, 2018 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Obligations of U.S. government sponsored enterprises and agencies $ 50,215 $ 252 $ — $ — $ 50,215 $ 252 Obligations of states and political subdivisions 156,791 1,103 43,335 1,664 200,126 2,767 Corporate bonds and other 9,135 51 235 4 9,370 55 Residential mortgage-backed securities 963,962 16,825 224,777 7,797 1,188,739 24,622 Commercial mortgage-backed securities 319,062 6,056 89,801 1,493 408,863 7,549 Total $ 1,499,165 $ 24,287 $ 358,148 $ 10,958 $ 1,857,313 $ 35,245 Less than 12 Months 12 Months or Longer Total December 31, 2018 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury securities $ 9,962 $ 8 $ — $ — $ 9,962 $ 8 Obligations of U.S. government sponsored enterprises and agencies — — 301 — 301 — Obligations of state and political subdivisions 27,489 107 114,461 1,863 141,950 1,970 Corporate bonds and other 4,348 68 450 9 4,798 77 Residential mortgage-backed securities 119,584 483 922,289 21,128 1,041,873 21,611 Commercial mortgage-backed securities 1,994 5 343,015 5,731 345,009 5,736 Total $ 163,377 $ 671 $ 1,380,516 $ 28,731 $ 1,543,893 $ 29,402 |
Loans Held for Investment and_2
Loans Held for Investment and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans Held-for-Investment by Class of Financing Receivables | Loans held-for-investment by class of financing receivables are as follows (in thousands): March 31, December 31, 2019 2018 2018 Commercial $ 826,886 $ 734,156 $ 844,953 Agricultural 91,336 95,958 96,677 Real estate 2,684,207 2,502,904 2,639,346 Consumer 386,731 397,033 372,660 Total loans held-for-investment $ 3,989,160 $ 3,730,051 $ 3,953,636 |
Non-Accrual Loans, Loans Still Accruing and Past Due 90 Days or More and Restructured Loans | The Company’s non-accrual loans, loans still accruing and past due 90 days or more and restructured loans are as follows (in thousands): March 31, December 31, 2019 2018 2018 Non-accrual loans* $ 28,508 $ 22,752 $ 27,534 Loans still accruing and past due 90 days or more 97 327 1,008 Troubled debt restructured loans** 472 514 513 Total $ 29,077 $ 23,593 $ 29,055 * Includes $859,000, $3,201,000 and $827,000 of purchased credit impaired loans as of March 31, 2019 and 2018, and December 31, 2018, respectively. ** Troubled debt restructured loans of $4,566,000, $4,608,000 and $3,840,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at March 31, 2019 and 2018, and December 31, 2018, respectively. |
Recorded Investment in Impaired Loans and Related Valuation Allowance | The Company’s recorded investment in impaired loans and the related valuation allowance are as follows (in thousands): March 31, 2019 March 31, 2018 December 31, 2018 Recorded Investment Valuation Allowance Recorded Investment Valuation Allowance Recorded Investment Valuation Allowance $ 28,508 $ 4,472 $ 22,752 $ 4,365 $ 27,534 $ 4,069 |
Schedule of Non-Accrual Loans | Non-accrual loans at March 31, 2019 and 2018, and December 31, 2018, consisted of the following by class of financing receivables (in thousands): March 31, December 31, 2019 2018 2018 Commercial $ 8,897 $ 5,351 $ 9,334 Agricultural 831 143 759 Real estate 18,254 16,161 16,714 Consumer 526 1,097 727 Total $ 28,508 $ 22,752 $ 27,534 |
Schedule of Impaired Loans and Related Allowance | The Company’s impaired loans and related allowance are summarized in the following tables by class of financing receivables (in thousands). No interest income was recognized on impaired loans subsequent to their classification as impaired. March 31, 2019 Unpaid Contractual Principal Balance Recorded Investment With No Allowance* Recorded Investment With Allowance Total Recorded Investment Related Allowance Three- Month Average Recorded Investment Commercial $ 10,227 $ 6,129 $ 2,768 $ 8,897 $ 1,184 $ 9,292 Agricultural 892 179 652 831 130 859 Real Estate 26,528 6,444 11,810 18,254 2,901 19,268 Consumer 689 27 499 526 257 577 Total $ 38,336 $ 12,779 $ 15,729 $ 28,508 $ 4,472 $ 29,996 * Includes $859,000 of purchased credit impaired loans. March 31, 2018 Unpaid Contractual Principal Balance Recorded Investment With No Allowance* Recorded Investment With Allowance Total Recorded Investment Related Allowance Three- Month Average Recorded Investment Commercial $ 7,360 $ 1,754 $ 3,597 $ 5,351 $ 1,306 $ 5,725 Agricultural 159 12 131 143 30 146 Real Estate 20,168 3,799 12,362 16,161 2,580 16,751 Consumer 1,292 117 980 1,097 449 1,149 Total $ 28,979 $ 5,682 $ 17,070 $ 22,752 $ 4,365 $ 23,771 * Includes $3,201,000 of purchased credit impaired loans. December 31, 2018 Unpaid Contractual Principal Balance Recorded Investment With No Allowance* Recorded Investment With Allowance Total Recorded Investment Related Allowance 12 Month Average Recorded Investment Commercial $ 10,808 $ 6,728 $ 2,606 $ 9,334 $ 1,133 $ 7,986 Agricultural 799 213 546 759 170 842 Real Estate 24,072 6,699 10,015 16,714 2,409 16,042 Consumer 935 101 626 727 357 914 Total $ 36,614 $ 13,741 $ 13,793 $ 27,534 $ 4,069 $ 25,784 * Includes $827,000 of purchased credit impaired loans. |
Schedule of Internal Ratings of Loans | The following summarizes the Company’s internal ratings of its loans held-for-investment by class of financing receivables and portfolio segments, which are the same (in thousands): March 31, 2019 Pass Special Mention Substandard Doubtful Total Commercial $ 787,651 $ 23,182 $ 16,053 $ — $ 826,886 Agricultural 87,151 20 4,165 — 91,336 Real Estate 2,611,139 21,827 51,241 — 2,684,207 Consumer 384,786 246 1,699 — 386,731 Total $ 3,870,727 $ 45,275 $ 73,158 $ — $ 3,989,160 March 31, 2018 Pass Special Mention Substandard Doubtful Total Commercial $ 705,251 $ 9,401 $ 19,504 $ — $ 734,156 Agricultural 90,975 1,755 3,228 — 95,958 Real Estate 2,415,458 28,638 58,808 — 2,502,904 Consumer 394,312 285 2,436 — 397,033 Total $ 3,605,996 $ 40,079 $ 83,976 $ — $ 3,730,051 December 31, 2018 Pass Special Mention Substandard Doubtful Total Commercial $ 804,584 $ 23,392 $ 16,977 $ — $ 844,953 Agricultural 92,864 46 3,767 — 96,677 Real Estate 2,559,379 26,626 53,341 — 2,639,346 Consumer 370,510 315 1,835 — 372,660 Total $ 3,827,337 $ 50,379 $ 75,920 $ — $ 3,953,636 |
Schedule of Past Due Loans | The Company’s past due loans are as follows (in thousands): March 31, 2019 15-59 Days Past Due* 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans 90 Days Past Due Still Accruing Commercial $ 4,123 $ 239 $ 885 $ 5,247 $ 821,639 $ 826,886 $ 63 Agricultural 323 17 — 340 90,996 91,336 — Real Estate 15,649 671 1,541 17,861 2,666,346 2,684,207 8 Consumer 1,003 96 26 1,125 385,606 386,731 26 Total $ 21,098 $ 1,023 $ 2,452 $ 24,573 $ 3,964,587 $ 3,989,160 $ 97 March 31, 2018 15-59 Days Past Due* 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans 90 Days Past Due Still Accruing Commercial $ 4,639 $ 760 $ 1,066 $ 6,465 $ 727,691 $ 734,156 $ 204 Agricultural 332 — — 332 95,626 95,958 — Real Estate 16,037 544 748 17,329 2,485,575 2,502,904 76 Consumer 824 221 161 1,206 395,827 397,033 47 Total $ 21,832 $ 1,525 $ 1,975 $ 25,332 $ 3,704,719 $ 3,730,051 $ 327 December 31, 2018 15-59 Days Past Due* 60-89 Days Past Due Greater Than 90 Days Total Past Due Total Current Total Loans Total 90 Days Past Due Still Accruing Commercial $ 3,546 $ 682 $ 677 $ 4,905 $ 840,048 $ 844,953 $ — Agricultural 791 19 26 836 95,841 96,677 — Real Estate 13,185 881 2,020 16,086 2,623,260 2,639,346 960 Consumer 782 263 54 1,099 371,561 372,660 48 Total $ 18,304 $ 1,845 $ 2,777 $ 22,926 $ 3,930,710 $ 3,953,636 $ 1,008 * The Company monitors commercial, agricultural and real estate loans after such loans are 15 days past due. Consumer loans are monitored after such loans are 30 days past due. |
Schedule of Allowance for Loan Losses by Portfolio Segment | The following table details the allowance for loan losses by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at March 31, 2019 and 2018, and December 31, 2018. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. March 31, 2019 Commercial Agricultural Real Estate Consumer Total Loans individually evaluated for impairment $ 1,184 $ 130 $ 2,901 $ 257 $ 4,472 Loans collectively evaluated for impairment 11,291 1,300 28,986 5,536 47,113 Total $ 12,475 $ 1,430 $ 31,887 $ 5,793 $ 51,585 March 31, 2018 Commercial Agricultural Real Estate Consumer Total Loans individually evaluated for impairment $ 1,306 $ 30 $ 2,580 $ 449 $ 4,365 Loans collectively evaluated for impairment 7,971 1,482 29,959 5,722 45,134 Total $ 9,277 $ 1,512 $ 32,539 $ 6,171 $ 49,499 December 31, 2018 Commercial Agricultural Real Estate Consumer Total Loans individually evaluated for impairment $ 1,133 $ 170 $ 2,409 $ 357 $ 4,069 Loans collectively evaluated for impairment 10,815 1,276 29,933 5,109 47,133 Total $ 11,948 $ 1,446 $ 32,342 $ 5,466 $ 51,202 |
Changes in Allowance for Loan Losses | Changes in the allowance for loan losses are summarized as follows by portfolio segment (in thousands): Three months ended March 31 , 2019 Commercial Agricultural Real Estate Consumer Total Beginning balance $ 11,948 $ 1,446 $ 32,342 $ 5,466 $ 51,202 Provision for loan losses 196 (19 ) 397 391 965 Recoveries 649 3 89 141 882 Charge-offs (318 ) — (941 ) (205 ) (1,464 ) Ending balance $ 12,475 $ 1,430 $ 31,887 $ 5,793 $ 51,585 Three months ended March 31 , 2018 Commercial Agricultural Real Estate Consumer Total Beginning balance $ 10,865 $ 1,305 $ 29,896 $ 6,090 $ 48,156 Provision for loan losses (1,627 ) 203 2,434 300 1,310 Recoveries 158 4 242 100 504 Charge-offs (119 ) — (33 ) (319 ) (471 ) Ending balance $ 9,277 $ 1,512 $ 32,539 $ 6,171 $ 49,499 |
Schedule of Investment in Loans Related to Balance in Allowance for Loan Losses on Basis of Company's Impairment Methodology | The Company’s recorded investment in loans related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows (in thousands). Purchased credit impaired loans of $859,000, $3,201,000 and $827,000 at March 31, 2019 and 2018, and December 31, 2018, respectively, are included in loans individually evaluated for impairment. March 31, 2019 Commercial Agricultural Real Estate Consumer Total Loans individually evaluated for impairment $ 8,897 $ 831 $ 18,254 $ 526 $ 28,508 Loans collectively evaluated for impairment 817,989 90,505 2,665,953 386,205 3,960,652 Total $ 826,886 $ 91,336 $ 2,684,207 $ 386,731 $ 3,989,160 March 31, 2018 Commercial Agricultural Real Estate Consumer Total Loans individually evaluated for impairment $ 5,351 $ 143 $ 16,161 $ 1,097 $ 22,752 Loans collectively evaluated for impairment 728,805 95,815 2,486,743 395,936 3,707,299 Total $ 734,156 $ 95,958 $ 2,502,904 $ 397,033 $ 3,730,051 December 31, 2018 Commercial Agricultural Real Estate Consumer Total Loans individually evaluated for impairment $ 9,334 $ 759 $ 16,714 $ 727 $ 27,534 Loan collectively evaluated for impairment 835,619 95,918 2,622,632 371,933 3,926,102 Total $ 844,953 $ 96,677 $ 2,639,346 $ 372,660 $ 3,953,636 |
Schedule of Loans Modified and Considered Troubled Debt Restructurings | The Company’s loans that were modified and considered troubled debt restructurings are as follows (in thousands): Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Pre- Modification Post- Modification Pre- Modification Post- Modification Recorded Recorded Recorded Recorded Number Investment Investment Number Investment Investment Commercial 1 $ 157 $ 157 — $ — $ — Agricultural 8 367 367 1 4 4 Real Estate 4 649 649 2 363 363 Consumer — — — 3 74 74 Total 13 $ 1,173 $ 1,173 6 $ 441 $ 441 |
Schedule of How Loans Were Modified as Troubled Debt Restructured Loans | The balances below provide information as to how the loans were modified as troubled debt restructured loans (in thousands): Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Adjusted Interest Rate Extended Maturity Combined Rate and Maturity Adjusted Interest Rate Extended Maturity Combined Rate and Maturity Commercial $ — $ 157 $ — $ — $ — $ — Agricultural — 102 265 — — 4 Real Estate — 201 448 — — 363 Consumer — — — — — 74 Total $ — $ 460 $ 713 $ — $ — $ 441 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Notional Balances and Fair Values of Outstanding Derivative Positions | The following table provides the outstanding notional balances and fair values of outstanding derivative positions (dollars in thousands): March 31, 2019: Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value IRLCs $ 60,679 $ 1,299 $ — Forward mortgage-backed securities trades 64,500 — 301 March 31, 2018: Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value IRLCs $ 63,090 $ 500 $ — December 31, 2018: Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value IRLCs $ 37,088 $ 765 $ — Forward mortgage-backed securities trades 45,500 — 403 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | Borrowings consisted of the following (dollars in thousands): March 31, December 31, 2019 2018 2018 Securities sold under agreements with customers to repurchase $ 378,161 $ 358,210 $ 409,631 Federal funds purchased 4,550 13,945 4,075 Advances from Federal Home Loan Bank of Dallas — — 55,000 Total $ 382,711 $ 372,155 $ 468,706 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s available-for-sale securities which are measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands): March 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Available-for-sale investment securities: U.S. Treasury securities $ 9,991 $ — $ — $ 9,991 Obligations of states and political subdivisions — 1,239,730 — 1,239,730 Corporate bonds — 456 — 456 Residential mortgage-backed securities — 1,516,288 — 1,516,288 Commercial mortgage-backed securities — 441,944 — 441,944 Other securities 4,403 — — 4,403 Total $ 14,394 $ 3,198,418 $ — $ 3,212,812 Loans held-for-sale $ — $ 12,007 $ — $ 12,007 IRLCs $ — $ 1,299 $ — $ 1,299 Forward mortgage-backed securities trades $ — $ 301 $ — $ 301 March 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Available-for-sale investment securities: Obligations of U. S. government sponsored enterprises and agencies $ — $ 50,215 $ — $ 50,215 Obligations of states and political subdivisions — 1,320,133 — 1,320,133 Corporate bonds — 4,971 — 4,971 Residential mortgage-backed securities — 1,427,772 — 1,427,772 Commercial mortgage-backed securities — 468,746 — 468,746 Other securities 4,356 — — 4,356 Total $ 4,356 $ 3,271,837 $ — $ 3,276,193 IRLCs $ — $ 500 $ — $ 500 December 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Available-for-sale investment securities: U.S. Treasury securities $ 9,962 $ — $ — $ 9,962 Obligations of U. S. government sponsored enterprises and agencies — 301 — 301 Obligations of states and political subdivisions — 1,257,871 — 1,257,871 Corporate bonds — 450 — 450 Residential mortgage-backed securities — 1,454,545 — 1,454,545 Commercial mortgage-backed securities — 431,300 — 431,300 Other securities 4,348 — — 4,348 Total $ 14,310 $ 3,144,467 $ — $ 3,158,777 Loans held-for-sale $ — $ 19,185 $ — $ 19,185 IRLCs $ — $ 765 $ — $ 765 Forward mortgage-backed securities trades $ — $ 403 $ — $ 403 |
Schedule of Estimated Fair Values and Carrying Values of All Financial Instruments | The estimated fair values and carrying values of all financial instruments under current authoritative guidance, were as follows (in thousands). March 31, December 31, 2019 2018 2018 Carrying Estimated Carrying Estimated Carrying Estimated Fair Value Value Fair Value Value Fair Value Value Fair Value Hierarchy Cash and due from banks $ 176,278 $ 176,278 $ 130,979 $ 130,979 $ 207,835 $ 207,835 Level 1 Federal funds sold 12,825 12,825 — — — — Level 1 Interest-bearing deposits in banks 197,758 197,758 67,060 67,060 40,812 40,812 Level 1 Interest-bearing time deposits in banks 1,458 1,458 1,458 1,458 1,458 1,458 Level 2 Available-for-sale securities 3,212,812 3,212,812 3,276,193 3,276,193 3,158,777 3,158,777 Levels 1 and 2 Loans Held for investment 3,937,575 3,973,329 3,680,552 3,701,919 3,902,434 3,947,391 Level 3 Loans held for sale 14,446 14,512 17,030 17,068 21,672 21,779 Level 3 Accrued interest receivable 29,372 29,372 28,631 28,631 36,765 36,765 Level 2 Deposits with stated maturities 441,393 441,433 468,078 469,000 442,161 441,727 Level 2 Deposits with no stated maturities 5,909,348 5,909,348 5,722,685 5,722,685 5,738,228 5,738,228 Level 1 Borrowings 382,711 382,711 372,155 372,155 468,706 468,706 Level 2 Accrued interest payable 575 575 195 195 408 408 Level 2 IRLC’s 1,299 1,299 500 500 765 765 Level 2 Forward mortgage backed securities trades 301 301 — — 403 403 Level 2 |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Schedule of Preliminary Estimated Fair Value Amounts Assigned to Major Asset and Liability Categories at Acquisition Date | The following table presents the amounts recorded on the consolidated balance sheet on the acquisition date (dollars in thousands): Fair value of consideration paid: Common stock issued (1,289,371 shares) $ 58,087 Fair value of identifiable assets acquired: Cash and cash equivalents 18,653 Securities available-for-sale 64,501 Loans 266,327 Identifiable intangible assets 3,167 Other assets 15,375 Total identifiable assets acquired 368,023 Fair value of liabilities assumed: Deposits 341,902 Other liabilities (373 ) Total liabilities assumed 341,529 Fair value of net identifiable assets acquired 26,494 Goodwill resulting from acquisition $ 31,593 |
Stock Split and Stock Repurch_2
Stock Split and Stock Repurchase - Additional Information (Detail) - shares | Apr. 23, 2019 | Mar. 31, 2019 | Jul. 25, 2017 |
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program expiration date | Sep. 30, 2020 | ||
Minimum number of shares that company is required to repurchase | 0 | ||
Stock repurchased under authorization | 0 | ||
Subsequent Event [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Dividends Common Stock Percentage of Stock Dividend | 100.00% | ||
Stockholders' Equity Note, Stock Split | two-for-one stock split | ||
Dividends Payable, Date of Record | May 15, 2019 | ||
Dividends Payable, Date to be Paid | Jun. 3, 2019 | ||
Maximum [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program, number of shares authorized to be repurchased | 2,000,000 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Weighted average common shares outstanding, basic | 135,494,254 | 135,054,020 |
Weighted average common shares outstanding, diluted | 136,286,862 | 135,599,090 |
Anti-dilutive securities excluded from the earnings per share calculations | 0 | 0 |
Interest-bearing Time Deposit_3
Interest-bearing Time Deposits in Banks and Securities - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2019USD ($)Investment | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Interest Bearing Time Deposits In Banks And Securities [Line Items] | |||
INTEREST-BEARING TIME DEPOSITS IN BANKS | $ 1,458,000 | $ 1,458,000 | $ 1,458,000 |
Interest-bearing time deposits, maturity period, years | 12 months | ||
Number of investment positions | Investment | 245 | ||
Securities pledged as collateral | $ 2,119,995,000 | ||
Sales of investment securities available-for-sale | 231,000 | 91,445,000 | |
Gross realized gains from security sales | 4,000 | 1,242,000 | |
Gross realized losses from security sales or calls | $ 4,000 | $ 21,000 | |
Obligations of State and Political Subdivisions [Member] | Texas [Member] | |||
Interest Bearing Time Deposits In Banks And Securities [Line Items] | |||
Percentage of securities guaranteed by Texas Permanent School Fund | 33.90% | ||
Obligations of State and Political Subdivisions [Member] | Texas [Member] | Available-for-Sale Securities [Member] | Geographic Concentration Risk [Member] | |||
Interest Bearing Time Deposits In Banks And Securities [Line Items] | |||
Concentration risk, percentage | 84.98% |
Interest-bearing Time Deposit_4
Interest-bearing Time Deposits in Banks and Securities - Summary of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-Sale, Amortized Cost Basis, Total | $ 3,172,535 | $ 3,153,568 | $ 3,275,277 |
Securities available-for-sale, Gross Unrealized Holding Gains | 54,446 | 34,611 | 36,161 |
Securities available-for-sale, Gross Unrealized Holding Losses | (14,169) | (29,402) | (35,245) |
Securities available-for-sale, Estimated Fair Value | 3,212,812 | 3,158,777 | 3,276,193 |
U.S. Treasury Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-Sale, Amortized Cost Basis, Total | 9,977 | 9,970 | |
Securities available-for-sale, Gross Unrealized Holding Gains | 14 | ||
Securities available-for-sale, Gross Unrealized Holding Losses | (8) | ||
Securities available-for-sale, Estimated Fair Value | 9,991 | 9,962 | |
Obligations of U.S. Government Sponsored Enterprises and Agencies [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-Sale, Amortized Cost Basis, Total | 301 | 50,467 | |
Securities available-for-sale, Gross Unrealized Holding Losses | (252) | ||
Securities available-for-sale, Estimated Fair Value | 301 | 50,215 | |
Obligations of State and Political Subdivisions [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-Sale, Amortized Cost Basis, Total | 1,196,111 | 1,229,828 | 1,289,886 |
Securities available-for-sale, Gross Unrealized Holding Gains | 44,155 | 30,013 | 33,014 |
Securities available-for-sale, Gross Unrealized Holding Losses | (536) | (1,970) | (2,767) |
Securities available-for-sale, Estimated Fair Value | 1,239,730 | 1,257,871 | 1,320,133 |
Corporate Bonds and Other [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-Sale, Amortized Cost Basis, Total | 4,874 | 4,875 | 9,382 |
Securities available-for-sale, Gross Unrealized Holding Gains | |||
Securities available-for-sale, Gross Unrealized Holding Losses | (15) | (77) | (55) |
Securities available-for-sale, Estimated Fair Value | 4,859 | 4,798 | 9,327 |
Residential Mortgage-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-Sale, Amortized Cost Basis, Total | 1,519,004 | 1,472,228 | 1,449,482 |
Securities available-for-sale, Gross Unrealized Holding Gains | 8,506 | 3,928 | 2,912 |
Securities available-for-sale, Gross Unrealized Holding Losses | (11,222) | (21,611) | (24,622) |
Securities available-for-sale, Estimated Fair Value | 1,516,288 | 1,454,545 | 1,427,772 |
Commercial Mortgage-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-Sale, Amortized Cost Basis, Total | 442,569 | 436,366 | 476,060 |
Securities available-for-sale, Gross Unrealized Holding Gains | 1,771 | 670 | 235 |
Securities available-for-sale, Gross Unrealized Holding Losses | (2,396) | (5,736) | (7,549) |
Securities available-for-sale, Estimated Fair Value | $ 441,944 | $ 431,300 | $ 468,746 |
Interest-bearing Time Deposit_5
Interest-bearing Time Deposits in Banks and Securities - Amortized Cost and Estimated Fair Value of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-Sale, Amortized Cost Basis, Due within one year | $ 176,257 | ||
Available-for-Sale, Amortized Cost Basis, Due after one year through five years | 554,136 | ||
Available-for-Sale, Amortized Cost Basis, Due after five years through ten years | 478,849 | ||
Available-for-Sale, Amortized Cost Basis, Due after ten years | 1,720 | ||
Available-for-Sale, Amortized Cost Basis, Mortgage-backed securities | 1,961,573 | ||
Available-for-Sale, Amortized Cost Basis, Total | 3,172,535 | $ 3,153,568 | $ 3,275,277 |
Available-for-Sale, Estimated Fair Value, Due within one year | 177,722 | ||
Available-for-Sale, Estimated Fair Value, Due after one year through five years | 575,051 | ||
Available-for-Sale, Estimated Fair Value, Due after five years through ten years | 499,689 | ||
Available-for-Sale, Estimated Fair Value, Due after ten years | 2,118 | ||
Available-for-Sale, Estimated Fair Value, Mortgage-backed securities | 1,958,232 | ||
Securities available-for-sale, Estimated Fair Value, Total | $ 3,212,812 | $ 3,158,777 | $ 3,276,193 |
Interest-bearing Time Deposit_6
Interest-bearing Time Deposits in Banks and Securities - Continuous Unrealized-Loss Position of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Fair Value | $ 5,280 | $ 163,377 | $ 1,499,165 |
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss | 30 | 671 | 24,287 |
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Fair Value | 1,211,060 | 1,380,516 | 358,148 |
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Unrealized Loss | 14,139 | 28,731 | 10,958 |
Available-for-sale securities, continuous unrealized loss position, Fair Value | 1,216,340 | 1,543,893 | 1,857,313 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss | 14,169 | 29,402 | 35,245 |
Obligations of U.S. Government Sponsored Enterprises and Agencies [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Fair Value | 50,215 | ||
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss | 252 | ||
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Fair Value | 301 | ||
Available-for-sale securities, continuous unrealized loss position, Fair Value | 301 | 50,215 | |
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss | 252 | ||
Obligations of State and Political Subdivisions [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Fair Value | 2,807 | 27,489 | 156,791 |
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss | 13 | 107 | 1,103 |
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Fair Value | 48,068 | 114,461 | 43,335 |
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Unrealized Loss | 523 | 1,863 | 1,664 |
Available-for-sale securities, continuous unrealized loss position, Fair Value | 50,875 | 141,950 | 200,126 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss | 536 | 1,970 | 2,767 |
Corporate Bonds and Other [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Fair Value | 4,348 | 9,135 | |
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss | 68 | 51 | |
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Fair Value | 4,873 | 450 | 235 |
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Unrealized Loss | 15 | 9 | 4 |
Available-for-sale securities, continuous unrealized loss position, Fair Value | 4,873 | 4,798 | 9,370 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss | 15 | 77 | 55 |
Residential Mortgage-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Fair Value | 2,473 | 119,584 | 963,962 |
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss | 17 | 483 | 16,825 |
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Fair Value | 854,482 | 922,289 | 224,777 |
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Unrealized Loss | 11,205 | 21,128 | 7,797 |
Available-for-sale securities, continuous unrealized loss position, Fair Value | 856,955 | 1,041,873 | 1,188,739 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss | 11,222 | 21,611 | 24,622 |
Commercial Mortgage-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Fair Value | 1,994 | 319,062 | |
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss | 5 | 6,056 | |
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Fair Value | 303,637 | 343,015 | 89,801 |
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Unrealized Loss | 2,396 | 5,731 | 1,493 |
Available-for-sale securities, continuous unrealized loss position, Fair Value | 303,637 | 345,009 | 408,863 |
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss | $ 2,396 | 5,736 | $ 7,549 |
U.S. Treasury Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Fair Value | 9,962 | ||
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss | 8 | ||
Available-for-sale securities, continuous unrealized loss position, Fair Value | 9,962 | ||
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss | $ 8 |
Loans Held for Investment and_3
Loans Held for Investment and Allowance for Loan Losses - Loans Held-for-Investment by Class of Financing Receivables (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total | $ 3,989,160 | $ 3,953,636 | $ 3,730,051 |
Commercial [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total | 826,886 | 844,953 | 734,156 |
Agriculture [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total | 91,336 | 96,677 | 95,958 |
Real Estate [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total | 2,684,207 | 2,639,346 | 2,502,904 |
Consumer [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total | $ 386,731 | $ 372,660 | $ 397,033 |
Loans Held for Investment and_4
Loans Held for Investment and Allowance for Loan Losses - Non-Accrual Loans, Loans Still Accruing and Past Due 90 Days or More and Restructured Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Receivables [Abstract] | ||||
Non-accrual loans | [1] | $ 28,508 | $ 27,534 | $ 22,752 |
Loans still accruing and past due 90 days or more | 97 | 1,008 | 327 | |
Troubled debt restructured loans | [2] | 472 | 513 | 514 |
Total | $ 29,077 | $ 29,055 | $ 23,593 | |
[1] | Includes $859,000, $3,201,000 and $827,000 of purchased credit impaired loans as of March 31, 2019 and 2018, and December 31, 2018, respectively. | |||
[2] | Troubled debt restructured loans of $9,999,000, $4,608,000 and $3,840,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at March 31, 2019 and 2018, and December 31, 2018, respectively. |
Loans Held for Investment and_5
Loans Held for Investment and Allowance for Loan Losses - Non-Accrual Loans, Loans Still Accruing and Past Due 90 Days or More and Restructured Loans (Parenthetical) (Detail) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Non-accrual loans | [1] | $ 28,508,000 | $ 27,534,000 | $ 22,752,000 |
Troubled debt restructured loans | [2] | 472,000 | 513,000 | 514,000 |
Doubtful [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Troubled debt restructured loans | 4,566,000 | 3,840,000 | 4,608,000 | |
Purchased Credit Impaired Loans [Member] | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Non-accrual loans | $ 859,000 | $ 827,000 | $ 3,201,000 | |
[1] | Includes $859,000, $3,201,000 and $827,000 of purchased credit impaired loans as of March 31, 2019 and 2018, and December 31, 2018, respectively. | |||
[2] | Troubled debt restructured loans of $9,999,000, $4,608,000 and $3,840,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at March 31, 2019 and 2018, and December 31, 2018, respectively. |
Loans Held for Investment and_6
Loans Held for Investment and Allowance for Loan Losses - Recorded Investment in Impaired Loans and Related Valuation Allowance (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Receivables [Abstract] | ||||
Recorded Investment | [1] | $ 28,508 | $ 27,534 | $ 22,752 |
Valuation Allowance | $ 4,472 | $ 4,069 | $ 4,365 | |
[1] | Includes $859,000, $3,201,000 and $827,000 of purchased credit impaired loans as of March 31, 2019 and 2018, and December 31, 2018, respectively. |
Loans Held for Investment and_7
Loans Held for Investment and Allowance for Loan Losses - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Nonaccrual, past due 90 days or more and still accruing, restructured loans and foreclosed assets | $ 29,724,000 | $ 24,869,000 | $ 29,632,000 | ||
Non accrual loans | [1] | 28,508,000 | 22,752,000 | 27,534,000 | |
Additional funds advanced in connection with impaired loans | 0 | 0 | |||
Interest income recognized on impaired loans | 0 | 0 | 0 | ||
Interest income recognized on impaired loans | 0 | 0 | 948,000 | ||
Allowance for loan losses | 51,585,000 | 49,499,000 | 51,202,000 | $ 48,156,000 | |
Loans individually evaluated for impairment | $ 28,508,000 | 22,752,000 | 27,534,000 | ||
Default for purposes of this disclosure is a troubled debt restructured loan | 90 days | ||||
Commitments to lend additional funds to borrowers with loan that have been modified as TDRs | $ 0 | 0 | |||
Loans held by subsidiaries subject to blanket liens | 2,519,715,000 | ||||
Impaired Financing Receivable, Unpaid Principal Balance | 38,336,000 | 28,979,000 | 36,614,000 | ||
Purchased Credit Impaired Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Non accrual loans | 859,000 | 3,201,000 | 827,000 | ||
Allowance for loan losses | 0 | 0 | 0 | ||
Loans individually evaluated for impairment | 859,000 | 3,201,000 | 827,000 | ||
Impaired Financing Receivable, Unpaid Principal Balance | $ 1,196,000 | $ 4,129,000 | $ 1,157,000 | ||
[1] | Includes $859,000, $3,201,000 and $827,000 of purchased credit impaired loans as of March 31, 2019 and 2018, and December 31, 2018, respectively. |
Loans Held for Investment and_8
Loans Held for Investment and Allowance for Loan Losses - Schedule of Non-Accrual Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual loans | [1] | $ 28,508 | $ 27,534 | $ 22,752 |
Commercial [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual loans | 8,897 | 9,334 | 5,351 | |
Agriculture [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual loans | 831 | 759 | 143 | |
Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual loans | 18,254 | 16,714 | 16,161 | |
Consumer [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-accrual loans | $ 526 | $ 727 | $ 1,097 | |
[1] | Includes $859,000, $3,201,000 and $827,000 of purchased credit impaired loans as of March 31, 2019 and 2018, and December 31, 2018, respectively. |
Loans Held for Investment and_9
Loans Held for Investment and Allowance for Loan Losses - Schedule of Impaired Loans and Related Allowance (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Contractual Principal Balance | $ 38,336 | $ 28,979 | $ 36,614 | |||
Recorded Investment With No Allowance | 12,779 | [1] | 5,682 | [2] | 13,741 | [3] |
Recorded Investment With Allowance | 15,729 | 17,070 | 13,793 | |||
Total Recorded Investment | 28,508 | 22,752 | 27,534 | |||
Related Allowance | 4,472 | 4,365 | 4,069 | |||
Average Recorded Investment | 29,996 | 23,771 | 25,784 | |||
Commercial [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Contractual Principal Balance | 10,227 | 7,360 | 10,808 | |||
Recorded Investment With No Allowance | 6,129 | [1] | 1,754 | [2] | 6,728 | [3] |
Recorded Investment With Allowance | 2,768 | 3,597 | 2,606 | |||
Total Recorded Investment | 8,897 | 5,351 | 9,334 | |||
Related Allowance | 1,184 | 1,306 | 1,133 | |||
Average Recorded Investment | 9,292 | 5,725 | 7,986 | |||
Agriculture [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Contractual Principal Balance | 892 | 159 | 799 | |||
Recorded Investment With No Allowance | 179 | [1] | 12 | [2] | 213 | [3] |
Recorded Investment With Allowance | 652 | 131 | 546 | |||
Total Recorded Investment | 831 | 143 | 759 | |||
Related Allowance | 130 | 30 | 170 | |||
Average Recorded Investment | 859 | 146 | 842 | |||
Real Estate [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Contractual Principal Balance | 26,528 | 20,168 | 24,072 | |||
Recorded Investment With No Allowance | 6,444 | [1] | 3,799 | [2] | 6,699 | [3] |
Recorded Investment With Allowance | 11,810 | 12,362 | 10,015 | |||
Total Recorded Investment | 18,254 | 16,161 | 16,714 | |||
Related Allowance | 2,901 | 2,580 | 2,409 | |||
Average Recorded Investment | 19,268 | 16,751 | 16,042 | |||
Consumer [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Unpaid Contractual Principal Balance | 689 | 1,292 | 935 | |||
Recorded Investment With No Allowance | 27 | [1] | 117 | [2] | 101 | [3] |
Recorded Investment With Allowance | 499 | 980 | 626 | |||
Total Recorded Investment | 526 | 1,097 | 727 | |||
Related Allowance | 257 | 449 | 357 | |||
Average Recorded Investment | $ 577 | $ 1,149 | $ 914 | |||
[1] | Includes $859,000 of purchased credit impaired loans. | |||||
[2] | Includes $3,201,000 of purchased credit impaired loans. | |||||
[3] | Includes $827,000 of purchased credit impaired loans. |
Loans Held for Investment an_10
Loans Held for Investment and Allowance for Loan Losses - Schedule of Impaired Loans and Related Allowance (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Investment With No Allowance | $ 12,779 | [1] | $ 13,741 | [2] | $ 5,682 | [3] |
Purchased Credit Impaired Loans [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Recorded Investment With No Allowance | $ 859 | $ 827 | $ 3,201 | |||
[1] | Includes $859,000 of purchased credit impaired loans. | |||||
[2] | Includes $827,000 of purchased credit impaired loans. | |||||
[3] | Includes $3,201,000 of purchased credit impaired loans. |
Loans Held for Investment an_11
Loans Held for Investment and Allowance for Loan Losses - Schedule of Internal Ratings of Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | $ 3,989,160 | $ 3,953,636 | $ 3,730,051 |
Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 826,886 | 844,953 | 734,156 |
Agriculture [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 91,336 | 96,677 | 95,958 |
Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 2,684,207 | 2,639,346 | 2,502,904 |
Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 386,731 | 372,660 | 397,033 |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 3,870,727 | 3,827,337 | 3,605,996 |
Pass [Member] | Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 787,651 | 804,584 | 705,251 |
Pass [Member] | Agriculture [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 87,151 | 92,864 | 90,975 |
Pass [Member] | Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 2,611,139 | 2,559,379 | 2,415,458 |
Pass [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 384,786 | 370,510 | 394,312 |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 45,275 | 50,379 | 40,079 |
Special Mention [Member] | Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 23,182 | 23,392 | 9,401 |
Special Mention [Member] | Agriculture [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 20 | 46 | 1,755 |
Special Mention [Member] | Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 21,827 | 26,626 | 28,638 |
Special Mention [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 246 | 315 | 285 |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 73,158 | 75,920 | 83,976 |
Substandard [Member] | Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 16,053 | 16,977 | 19,504 |
Substandard [Member] | Agriculture [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 4,165 | 3,767 | 3,228 |
Substandard [Member] | Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | 51,241 | 53,341 | 58,808 |
Substandard [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Internal ratings of loan | $ 1,699 | $ 1,835 | $ 2,436 |
Loans Held for Investment an_12
Loans Held for Investment and Allowance for Loan Losses - Schedule of Past Due Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | $ 24,573 | $ 22,926 | $ 25,332 | |
Total Current | 3,964,587 | 3,930,710 | 3,704,719 | |
Total Loans | 3,989,160 | 3,953,636 | 3,730,051 | |
Total 90 Days Past Due Still Accruing | 97 | 1,008 | 327 | |
Commercial [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 5,247 | 4,905 | 6,465 | |
Total Current | 821,639 | 840,048 | 727,691 | |
Total Loans | 826,886 | 844,953 | 734,156 | |
Total 90 Days Past Due Still Accruing | 63 | 204 | ||
Agriculture [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 340 | 836 | 332 | |
Total Current | 90,996 | 95,841 | 95,626 | |
Total Loans | 91,336 | 96,677 | 95,958 | |
Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 17,861 | 16,086 | 17,329 | |
Total Current | 2,666,346 | 2,623,260 | 2,485,575 | |
Total Loans | 2,684,207 | 2,639,346 | 2,502,904 | |
Total 90 Days Past Due Still Accruing | 8 | 960 | 76 | |
Consumer [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 1,125 | 1,099 | 1,206 | |
Total Current | 385,606 | 371,561 | 395,827 | |
Total Loans | 386,731 | 372,660 | 397,033 | |
Total 90 Days Past Due Still Accruing | 26 | 48 | 47 | |
15-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | [1] | 21,098 | 18,304 | 21,832 |
15-59 Days Past Due [Member] | Commercial [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | [1] | 4,123 | 3,546 | 4,639 |
15-59 Days Past Due [Member] | Agriculture [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | [1] | 323 | 791 | 332 |
15-59 Days Past Due [Member] | Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | [1] | 15,649 | 13,185 | 16,037 |
15-59 Days Past Due [Member] | Consumer [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | [1] | 1,003 | 782 | 824 |
60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 1,023 | 1,845 | 1,525 | |
60-89 Days Past Due [Member] | Commercial [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 239 | 682 | 760 | |
60-89 Days Past Due [Member] | Agriculture [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 17 | 19 | ||
60-89 Days Past Due [Member] | Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 671 | 881 | 544 | |
60-89 Days Past Due [Member] | Consumer [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 96 | 263 | 221 | |
Greater than 90 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 2,452 | 2,777 | 1,975 | |
Greater than 90 Days [Member] | Commercial [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 885 | 677 | 1,066 | |
Greater than 90 Days [Member] | Agriculture [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 26 | |||
Greater than 90 Days [Member] | Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 1,541 | 2,020 | 748 | |
Greater than 90 Days [Member] | Consumer [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | $ 26 | $ 54 | $ 161 | |
[1] | The Company monitors commercial, agricultural and real estate loans after such loans are 15 days past due. Consumer loans are monitored after such loans are 30 days past due. |
Loans Held for Investment an_13
Loans Held for Investment and Allowance for Loan Losses - Schedule of Allowance for Loan Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually evaluated for impairment | $ 4,472 | $ 4,069 | $ 4,365 | |
Loan collectively evaluated for impairment | 47,113 | 47,133 | 45,134 | |
Total allowance for loan losses | 51,585 | 51,202 | 49,499 | $ 48,156 |
Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually evaluated for impairment | 1,184 | 1,133 | 1,306 | |
Loan collectively evaluated for impairment | 11,291 | 10,815 | 7,971 | |
Total allowance for loan losses | 12,475 | 11,948 | 9,277 | 10,865 |
Agriculture [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually evaluated for impairment | 130 | 170 | 30 | |
Loan collectively evaluated for impairment | 1,300 | 1,276 | 1,482 | |
Total allowance for loan losses | 1,430 | 1,446 | 1,512 | 1,305 |
Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually evaluated for impairment | 2,901 | 2,409 | 2,580 | |
Loan collectively evaluated for impairment | 28,986 | 29,933 | 29,959 | |
Total allowance for loan losses | 31,887 | 32,342 | 32,539 | 29,896 |
Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans individually evaluated for impairment | 257 | 357 | 449 | |
Loan collectively evaluated for impairment | 5,536 | 5,109 | 5,722 | |
Total allowance for loan losses | $ 5,793 | $ 5,466 | $ 6,171 | $ 6,090 |
Loans Held for Investment an_14
Loans Held for Investment and Allowance for Loan Losses - Changes in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | $ 51,202 | $ 48,156 |
Provision for loan losses | 965 | 1,310 |
Recoveries | 882 | 504 |
Charge-offs | (1,464) | (471) |
Ending balance | 51,585 | 49,499 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 11,948 | 10,865 |
Provision for loan losses | 196 | (1,627) |
Recoveries | 649 | 158 |
Charge-offs | (318) | (119) |
Ending balance | 12,475 | 9,277 |
Agriculture [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 1,446 | 1,305 |
Provision for loan losses | (19) | 203 |
Recoveries | 3 | 4 |
Ending balance | 1,430 | 1,512 |
Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 32,342 | 29,896 |
Provision for loan losses | 397 | 2,434 |
Recoveries | 89 | 242 |
Charge-offs | (941) | (33) |
Ending balance | 31,887 | 32,539 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 5,466 | 6,090 |
Provision for loan losses | 391 | 300 |
Recoveries | 141 | 100 |
Charge-offs | (205) | (319) |
Ending balance | $ 5,793 | $ 6,171 |
Loans Held for Investment an_15
Loans Held for Investment and Allowance for Loan Losses - Schedule of Investment in Loans Related to Balance in Allowance for Loan Losses on Basis of Company's Impairment Methodology (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | $ 28,508 | $ 27,534 | $ 22,752 |
Loan collectively evaluated for impairment | 3,960,652 | 3,926,102 | 3,707,299 |
Total | 3,989,160 | 3,953,636 | 3,730,051 |
Commercial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | 8,897 | 9,334 | 5,351 |
Loan collectively evaluated for impairment | 817,989 | 835,619 | 728,805 |
Total | 826,886 | 844,953 | 734,156 |
Agriculture [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | 831 | 759 | 143 |
Loan collectively evaluated for impairment | 90,505 | 95,918 | 95,815 |
Total | 91,336 | 96,677 | 95,958 |
Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | 18,254 | 16,714 | 16,161 |
Loan collectively evaluated for impairment | 2,665,953 | 2,622,632 | 2,486,743 |
Total | 2,684,207 | 2,639,346 | 2,502,904 |
Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | 526 | 727 | 1,097 |
Loan collectively evaluated for impairment | 386,205 | 371,933 | 395,936 |
Total | $ 386,731 | $ 372,660 | $ 397,033 |
Loans Held for Investment an_16
Loans Held for Investment and Allowance for Loan Losses - Schedule of Loans Modified and Considered Troubled Debt Restructurings (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)SecurityLoan | Mar. 31, 2018USD ($)SecurityLoan | |
Financing Receivable, Modifications [Line Items] | ||
Number | SecurityLoan | 13 | 6 |
Pre-Modification Recorded Investment | $ 1,173 | $ 441 |
Post-Modification Recorded Investment | $ 1,173 | $ 441 |
Commercial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | SecurityLoan | 1 | |
Pre-Modification Recorded Investment | $ 157 | |
Post-Modification Recorded Investment | $ 157 | |
Agriculture [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | SecurityLoan | 8 | 1 |
Pre-Modification Recorded Investment | $ 367 | $ 4 |
Post-Modification Recorded Investment | $ 367 | $ 4 |
Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | SecurityLoan | 4 | 2 |
Pre-Modification Recorded Investment | $ 649 | $ 363 |
Post-Modification Recorded Investment | $ 649 | $ 363 |
Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | SecurityLoan | 3 | |
Pre-Modification Recorded Investment | $ 74 | |
Post-Modification Recorded Investment | $ 74 |
Loans Held for Investment an_17
Loans Held for Investment and Allowance for Loan Losses - Schedule of How Loans Were Modified as Troubled Debt Restructured Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans | $ 1,173 | $ 441 |
Commercial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans | 157 | |
Agriculture [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans | 367 | 4 |
Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans | 649 | 363 |
Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans | 74 | |
Extended Maturity [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans | 460 | |
Extended Maturity [Member] | Commercial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans | 157 | |
Extended Maturity [Member] | Agriculture [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans | 102 | |
Extended Maturity [Member] | Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans | 201 | |
Combined Rate and Maturity [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans | 713 | 441 |
Combined Rate and Maturity [Member] | Agriculture [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans | 265 | 4 |
Combined Rate and Maturity [Member] | Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans | $ 448 | 363 |
Combined Rate and Maturity [Member] | Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans | $ 74 |
Loans Held for Sale - Additiona
Loans Held for Sale - Additional Information (Detail) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group [Abstract] | |||
Loans held for sale | $ 14,446,000 | $ 21,672,000 | $ 17,030,000 |
Loans held-for-sale at the lower of cost or fair value | $ 2,439,000 | $ 2,487,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Outstanding Notional Balances and Fair Values of Outstanding Derivative Positions (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
IRLCs [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Outstanding Notional Balance | $ 60,679 | $ 37,088 | $ 63,090 |
Asset Derivative Fair Value | 1,299 | 765 | $ 500 |
Forward Mortgage-Backed Securities Trades [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Outstanding Notional Balance | 64,500 | 45,500 | |
Liability Derivative Fair Value | $ 301 | $ 403 |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Debt Disclosure [Abstract] | |||
Securities sold under agreements with customers to repurchase | $ 378,161 | $ 409,631 | $ 358,210 |
Federal funds purchased | 4,550 | 4,075 | 13,945 |
Advances from Federal Home Loan Bank of Dallas | 55,000 | ||
Total | $ 382,711 | $ 468,706 | $ 372,155 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Taxes [Line Items] | ||
Income tax expense | $ 7,367 | $ 6,245 |
Effective tax rates on pre-tax income | 16.15% | 15.32% |
Stock Option Plan and Restric_2
Stock Option Plan and Restricted Stock Plan - Additional Information (Detail) - USD ($) | Apr. 23, 2019 | Oct. 23, 2018 | Apr. 24, 2018 | Oct. 24, 2017 | Apr. 25, 2017 | Oct. 25, 2016 | Oct. 27, 2015 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Weighted-average grant-date fair value of options granted | $ 0 | $ 0 | ||||||||
Stock compensation expense | $ 312,000 | $ 377,000 | ||||||||
Restricted Stock [Member] | Non-Employee Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares granted | 660,000 | 10,710 | 14,650 | |||||||
Restricted shares value | $ 10,857 | $ 540,000 | $ 600,000 | |||||||
Restricted Stock [Member] | Director [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock compensation expense | 135,000 | 150,000 | ||||||||
Restricted Stock [Member] | Officers [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Restricted shares vesting period | 3 years | 3 years | 3 years | |||||||
Restricted shares granted | 26,021 | 14,191 | 15,405 | 31,273 | ||||||
Restricted shares value | $ 1,440,000 | $ 655,000 | $ 560,000 | $ 1,060,000 | ||||||
Stock compensation expense | $ 205,000 | $ 167,000 |
Pension Plan - Additional Infor
Pension Plan - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions to the plan | $ 0 | $ 0 | |
Defined benefit plan pension obligation retirement benefit percentage | 53.00% | ||
Defined benefit plan pension obligation, loss on settlement | $ 1,546,000 | ||
Net periodic benefit costs, total | 923,000 | $ 56,000 | |
Orange pension plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension merger expense | $ 900,000 |
Fair Value Disclosures - Additi
Fair Value Disclosures - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets transfer between Level 2 and Level 3 | $ 0 | $ 0 | $ 0 | |||
Impaired loans carrying value, recorded investment with allowance | 15,729,000 | 17,070,000 | 13,793,000 | |||
Impaired loans valuation reserves | 4,472,000 | 4,365,000 | 4,069,000 | |||
Impaired loans net fair value | 11,257,000 | |||||
Recorded Investment With No Allowance | 12,779,000 | [1] | 5,682,000 | [2] | 13,741,000 | [3] |
Loans held-for-sale at the lower of cost or fair value | 2,439,000 | 2,487,000 | ||||
Loans held for sale under fair value | 12,007,000 | 0 | 19,185,000 | |||
Other real estate owned, total | 612,000 | $ 1,179,000 | $ 448,000 | |||
Level 2 Inputs [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impaired loans carrying value, recorded investment with allowance | 15,729,000 | |||||
Impaired loans valuation reserves | 4,472,000 | |||||
Loans held-for-sale at the lower of cost or fair value | 2,439,000 | |||||
Loans held for sale under fair value | $ 2,505,000 | |||||
Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt discounts, percentage | 5 | |||||
Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt discounts, percentage | 25 | |||||
[1] | Includes $859,000 of purchased credit impaired loans. | |||||
[2] | Includes $3,201,000 of purchased credit impaired loans. | |||||
[3] | Includes $827,000 of purchased credit impaired loans. |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | $ 3,212,812 | $ 3,158,777 | $ 3,276,193 |
Loans held-for-sale | 14,446 | 21,672 | 17,030 |
U.S. Treasury Securities [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 9,991 | 9,962 | |
Obligations of U.S. Government Sponsored Enterprises and Agencies [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 301 | 50,215 | |
Obligations of State and Political Subdivisions [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 1,239,730 | 1,257,871 | 1,320,133 |
Residential Mortgage-Backed Securities [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 1,516,288 | 1,454,545 | 1,427,772 |
Commercial Mortgage-Backed Securities [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 441,944 | 431,300 | 468,746 |
IRLCs [Member] | |||
Available-for-sale investment securities: | |||
Asset Derivative Fair Value | 1,299 | 765 | 500 |
Forward Mortgage-Backed Securities Trades [Member] | |||
Available-for-sale investment securities: | |||
Forward mortgage-backed securities trades | 301 | 403 | |
Fair Value, Measurements, Recurring [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 3,212,812 | 3,158,777 | 3,276,193 |
Loans held-for-sale | 12,007 | 19,185 | |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 9,991 | 9,962 | |
Fair Value, Measurements, Recurring [Member] | Obligations of U.S. Government Sponsored Enterprises and Agencies [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 301 | 50,215 | |
Fair Value, Measurements, Recurring [Member] | Obligations of State and Political Subdivisions [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 1,239,730 | 1,257,871 | 1,320,133 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 1,516,288 | 1,454,545 | 1,427,772 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed Securities [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 441,944 | 431,300 | 468,746 |
Fair Value, Measurements, Recurring [Member] | IRLCs [Member] | |||
Available-for-sale investment securities: | |||
Asset Derivative Fair Value | 1,299 | 765 | 500 |
Fair Value, Measurements, Recurring [Member] | Forward Mortgage-Backed Securities Trades [Member] | |||
Available-for-sale investment securities: | |||
Forward mortgage-backed securities trades | 301 | 403 | |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 456 | 450 | 4,971 |
Fair Value, Measurements, Recurring [Member] | Other Securities [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 4,403 | 4,348 | 4,356 |
Fair Value, Measurements, Recurring [Member] | Level 1 Inputs [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 14,394 | 14,310 | 4,356 |
Fair Value, Measurements, Recurring [Member] | Level 1 Inputs [Member] | U.S. Treasury Securities [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 9,991 | 9,962 | |
Fair Value, Measurements, Recurring [Member] | Level 1 Inputs [Member] | Other Securities [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 4,403 | 4,348 | 4,356 |
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 3,198,418 | 3,144,467 | 3,271,837 |
Loans held-for-sale | 12,007 | 19,185 | |
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Obligations of U.S. Government Sponsored Enterprises and Agencies [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 301 | 50,215 | |
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Obligations of State and Political Subdivisions [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 1,239,730 | 1,257,871 | 1,320,133 |
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Residential Mortgage-Backed Securities [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 1,516,288 | 1,454,545 | 1,427,772 |
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Commercial Mortgage-Backed Securities [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | 441,944 | 431,300 | 468,746 |
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | IRLCs [Member] | |||
Available-for-sale investment securities: | |||
Asset Derivative Fair Value | 1,299 | 765 | 500 |
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Forward Mortgage-Backed Securities Trades [Member] | |||
Available-for-sale investment securities: | |||
Forward mortgage-backed securities trades | 301 | 403 | |
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Corporate Bonds [Member] | |||
Available-for-sale investment securities: | |||
Available-for-sale investment securities, Total Fair Value | $ 456 | $ 450 | $ 4,971 |
Fair Value Disclosures - Schedu
Fair Value Disclosures - Schedule of Estimated Fair Values and Carrying Values of All Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and due from banks | $ 176,278 | $ 207,835 | $ 130,979 |
Federal funds sold | 12,825 | ||
Interest-bearing deposits in banks | 197,758 | 40,812 | 67,060 |
Interest-bearing time deposits in banks | 1,458 | 1,458 | 1,458 |
Available-for-sale securities | 3,212,812 | 3,158,777 | 3,276,193 |
Loans held for investment | 3,937,575 | 3,902,434 | 3,680,552 |
Loans held for sale | 14,446 | 21,672 | 17,030 |
Borrowings | 382,711 | 468,706 | 372,155 |
IRLCs [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Asset Derivative Fair Value | 1,299 | 765 | 500 |
Forward Mortgage-Backed Securities Trades [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Forward mortgage-backed securities trades | 301 | 403 | |
Carrying Value [Member] | Level 1 Inputs [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and due from banks | 176,278 | 207,835 | 130,979 |
Federal funds sold | 12,825 | ||
Interest-bearing deposits in banks | 197,758 | 40,812 | 67,060 |
Deposits with no stated maturities | 5,909,348 | 5,738,228 | 5,722,685 |
Carrying Value [Member] | Level 2 Inputs [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest-bearing time deposits in banks | 1,458 | 1,458 | 1,458 |
Accrued interest receivable | 29,372 | 36,765 | 28,631 |
Deposits with stated maturities | 441,393 | 442,161 | 468,078 |
Borrowings | 382,711 | 468,706 | 372,155 |
Accrued interest payable | 575 | 408 | 195 |
Carrying Value [Member] | Level 2 Inputs [Member] | IRLCs [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Asset Derivative Fair Value | 1,299 | 765 | 500 |
Carrying Value [Member] | Level 2 Inputs [Member] | Forward Mortgage-Backed Securities Trades [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Forward mortgage-backed securities trades | 301 | 403 | |
Carrying Value [Member] | Levels 1 and 2 Inputs [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale securities | 3,212,812 | 3,158,777 | 3,276,193 |
Carrying Value [Member] | Level 3 Inputs [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held for investment | 3,937,575 | 3,902,434 | 3,680,552 |
Loans held for sale | 14,446 | 21,672 | 17,030 |
Estimated Fair Value [Member] | Level 1 Inputs [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and due from banks | 176,278 | 207,835 | 130,979 |
Federal funds sold | 12,825 | ||
Interest-bearing deposits in banks | 197,758 | 40,812 | 67,060 |
Deposits with no stated maturities | 5,909,348 | 5,738,228 | 5,722,685 |
Estimated Fair Value [Member] | Level 2 Inputs [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest-bearing time deposits in banks | 1,458 | 1,458 | 1,458 |
Accrued interest receivable | 29,372 | 36,765 | 28,631 |
Deposits with stated maturities | 441,433 | 441,727 | 469,000 |
Borrowings | 382,711 | 468,706 | 372,155 |
Accrued interest payable | 575 | 408 | 195 |
Estimated Fair Value [Member] | Level 2 Inputs [Member] | IRLCs [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Asset Derivative Fair Value | 1,299 | 765 | 500 |
Estimated Fair Value [Member] | Level 2 Inputs [Member] | Forward Mortgage-Backed Securities Trades [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Forward mortgage-backed securities trades | 301 | 403 | |
Estimated Fair Value [Member] | Levels 1 and 2 Inputs [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale securities | 3,212,812 | 3,158,777 | 3,276,193 |
Estimated Fair Value [Member] | Level 3 Inputs [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held for investment | 3,973,329 | 3,947,391 | 3,701,919 |
Loans held for sale | $ 14,512 | $ 21,779 | $ 17,068 |
Recently Issued Authoritative_2
Recently Issued Authoritative Accounting Guidance - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Federal statutory tax rate | 21.00% | 35.00% | |
Accounting Standards Update 2018-02 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Reclassification of standard tax debit within accumulated other comprehensive income to retained earnings | $ 5,759,000 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) | Jan. 02, 2018 | Oct. 12, 2017 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Business Acquisition [Line Items] | |||||
Fair value of total loans | $ 266,327,000 | ||||
Fair value of purchased credit impaired loans | 28,508,000 | $ 27,534,000 | $ 22,752,000 | ||
Contractual amounts | 38,336,000 | 36,614,000 | 28,979,000 | ||
Purchased Credit Impaired Loans [Member] | |||||
Business Acquisition [Line Items] | |||||
Contractual amounts | 1,196,000 | $ 1,157,000 | $ 4,129,000 | ||
FBC Bancshares, Inc. and First Bank, N.A. [Member] | |||||
Business Acquisition [Line Items] | |||||
Payment for all outstanding shares of acquired entity by shares | 1,289,371 | ||||
Fair value of total loans | 266,327,000 | ||||
Total loans of contractual amounts | 271,714,000 | ||||
FBC Bancshares, Inc. and First Bank, N.A. [Member] | Purchased Credit Impaired Loans [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair value of purchased credit impaired loans | 3,013,000 | ||||
Contractual amounts | $ 3,806,000 | ||||
Commercial Bancshares, Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, agreement date | Oct. 12, 2017 | ||||
Payment for all outstanding shares of acquired entity by shares | 1,289,371 | ||||
Business acquisition, special dividend | $ 22,075,000 | ||||
Increase decrease in business acquisition, special dividend | $ 42,402,000 |
Acquisition - Schedule of Amoun
Acquisition - Schedule of Amounts Recorded on Consolidated Balance Sheet on Acquisition Date (Detail) $ in Thousands | Oct. 12, 2017USD ($) |
FBC Bancshares, Inc. and First Bank, N.A. [Member] | |
Business Acquisition [Line Items] | |
Common stock issued (1,289,371 shares) | $ 58,087 |
Acquisition - Schedule of Amo_2
Acquisition - Schedule of Amounts Recorded on Consolidated Balance Sheet on Acquisition Date (Parenthetical) (Detail) | Oct. 12, 2017shares |
FBC Bancshares, Inc. and First Bank, N.A. [Member] | |
Business Acquisition [Line Items] | |
Common stock issued shares | 1,289,371 |
Acquisition - Schedule of Preli
Acquisition - Schedule of Preliminary Estimated Fair Value Amounts Assigned to Major Asset and Liability Categories at Acquisition Date (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Business Acquisition [Line Items] | |
Loans | $ 266,327 |
FBC Bancshares, Inc. and First Bank, N.A. [Member] | |
Business Acquisition [Line Items] | |
Cash and cash equivalents | 18,653 |
Securities available-for-sale | 64,501 |
Loans | 266,327 |
Identifiable intangible assets | 3,167 |
Other assets | 15,375 |
Total identifiable assets acquired | 368,023 |
Deposits | 341,902 |
Other liabilities | (373) |
Total liabilities assumed | 341,529 |
Fair value of net identifiable assets acquired | 26,494 |
Goodwill resulting from acquisition | $ 31,593 |