Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 20, 2020 | Jun. 30, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 001-12669 | ||
Entity Registrant Name | SOUTH STATE CORP | ||
Entity Incorporation, State or Country Code | SC | ||
Entity Tax Identification Number | 57-0799315 | ||
Entity Address, Address Line One | 520 Gervais Street | ||
Entity Address, City or Town | Columbia | ||
Entity Address, State or Province | SC | ||
Entity Address, Postal Zip Code | 29201 | ||
City Area Code | 800 | ||
Local Phone Number | 277-2175 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | SSB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,512,032,000 | ||
Entity Common Stock, Shares Outstanding | 33,602,062 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000764038 | ||
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 262,019 | $ 251,411 |
Interest-bearing deposits with banks | 426,685 | 124,895 |
Federal funds sold and securities purchased under agreements to resell | 32,677 | |
Total cash and cash equivalents | 688,704 | 408,983 |
Investment securities: | ||
Securities available for sale, at fair value | 1,956,047 | 1,517,067 |
Other investments | 49,124 | 25,604 |
Total investment securities | 2,005,171 | 1,542,671 |
Loans held for sale | 59,363 | 22,925 |
Loans: | ||
Loans, net | 11,313,113 | 10,962,037 |
Other real estate owned | 11,964 | 11,410 |
Premises and equipment, net | 317,321 | 241,076 |
Bank owned life insurance | 234,567 | 230,105 |
Deferred tax assets | 31,316 | 37,128 |
Mortgage servicing rights | 30,525 | 34,727 |
Core deposit and other intangibles | 49,816 | 62,900 |
Goodwill | 1,002,900 | 1,002,900 |
Other assets | 176,332 | 119,466 |
Total assets | 15,921,092 | 14,676,328 |
Deposits: | ||
Noninterest-bearing | 3,245,306 | 3,061,769 |
Interest-bearing | 8,931,790 | 8,585,164 |
Total deposits | 12,177,096 | 11,646,933 |
Federal funds purchased and securities sold under agreements to repurchase | 298,741 | 270,649 |
Other borrowings | 815,936 | 266,084 |
Other liabilities | 256,306 | 126,366 |
Total liabilities | 13,548,079 | 12,310,032 |
Shareholders' equity: | ||
Common stock - $2.50 par value; authorized 80,000,000 shares; 33,744,385 and 35,829,549 shares issued and outstanding, respectively | 84,361 | 89,574 |
Surplus | 1,607,740 | 1,750,495 |
Retained earnings | 679,895 | 551,108 |
Accumulated other comprehensive income (loss) | 1,017 | (24,881) |
Total shareholders' equity | 2,373,013 | 2,366,296 |
Total liabilities and shareholders' equity | 15,921,092 | 14,676,328 |
Acquired credit impaired loans | ||
Loans: | ||
Lones, net | 356,782 | 485,119 |
Acquired non-credit impaired loans | ||
Loans: | ||
Total loans | 1,760,427 | 2,594,826 |
Non-acquired loans | ||
Loans: | ||
Total loans | 9,252,831 | 7,933,286 |
Less allowance for non-acquired loan losses | (56,927) | (51,194) |
Loans, net | $ 9,195,904 | $ 7,882,092 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 33,744,385 | 35,829,549 |
Common stock, shares outstanding | 33,744,385 | 35,829,549 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||
Loans, including fees | $ 534,790 | $ 521,478 | $ 389,535 |
Investment securities: | |||
Taxable | 39,949 | 35,563 | 28,165 |
Tax-exempt | 6,186 | 6,152 | 5,591 |
Federal funds sold, securities purchased under agreements to resell and interest-bearing deposits with banks | 9,902 | 4,015 | 2,709 |
Total interest income | 590,827 | 567,208 | 426,000 |
Interest expense: | |||
Deposits | 65,920 | 45,452 | 12,353 |
Federal funds purchased and securities sold under agreements to repurchase | 2,627 | 2,356 | 1,080 |
Other borrowings | 18,005 | 6,184 | 3,581 |
Total interest expense | 86,552 | 53,992 | 17,014 |
Net interest income | 504,275 | 513,216 | 408,986 |
Provision for loan losses | 12,777 | 13,783 | 11,890 |
Net interest income after provision for loan losses | 491,498 | 499,433 | 397,096 |
Noninterest income: | |||
Securities gains (losses), net | 2,711 | (655) | 1,421 |
Other-than-temporary impairment losses | (753) | ||
Recoveries on acquired loans | 6,847 | 9,117 | 8,572 |
Other | 11,764 | 11,819 | 6,670 |
Total noninterest income | 143,565 | 145,749 | 140,029 |
Noninterest expense: | |||
Salaries and employee benefits | 234,747 | 233,130 | 194,446 |
Occupancy expense | 47,457 | 49,165 | 40,925 |
Information services expense | 35,477 | 34,322 | 25,462 |
OREO expense and loan related | 3,242 | 3,510 | 6,721 |
Pension plan termination expense | 9,526 | ||
Amortization of intangibles | 13,084 | 14,209 | 10,353 |
Supplies, printing and postage expense | 5,881 | 5,839 | 6,148 |
Professional fees | 10,325 | 8,883 | 5,975 |
FDIC assessment and other regulatory charges | 4,545 | 8,405 | 3,924 |
Advertising and marketing | 4,309 | 4,221 | 3,963 |
Merger and branch consolidation related expense | 4,552 | 29,868 | 44,503 |
Other | 31,493 | 29,375 | 25,900 |
Total noninterest expense | 404,638 | 420,927 | 368,320 |
Earnings: | |||
Income before provision for income taxes | 230,425 | 224,255 | 168,805 |
Provision for income taxes | 43,942 | 45,384 | 81,251 |
Net income | $ 186,483 | $ 178,871 | $ 87,554 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 5.40 | $ 4.90 | $ 2.95 |
Diluted (in dollars per share) | $ 5.36 | $ 4.86 | $ 2.93 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 34,561 | 36,530 | 29,686 |
Diluted (in shares) | 34,797 | 36,776 | 29,922 |
Fees on deposit accounts | |||
Noninterest income: | |||
Noninterest income | $ 75,435 | $ 81,649 | $ 80,764 |
Mortgage banking income | |||
Noninterest income: | |||
Noninterest income | 17,564 | 13,590 | 17,954 |
Trust and investment services income | |||
Noninterest income: | |||
Noninterest income | $ 29,244 | $ 30,229 | $ 25,401 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Consolidated Statements of Comprehensive Income | |||
Net income | $ 186,483 | $ 178,871 | $ 87,554 |
Unrealized gains (losses) on available for sale securities: | |||
Unrealized holding gains (losses) arising during period | 36,211 | (17,322) | (3,486) |
Tax effect | (7,966) | 3,843 | 1,329 |
Reclassification adjustment for (gains) losses included in net income | 2,655 | 655 | (668) |
Tax effect | (584) | (145) | 255 |
Net of tax amount | 30,316 | (12,969) | (2,570) |
Unrealized gains (losses) on derivative financial instruments qualifying as cash flow hedges: | |||
Unrealized holding gains (losses) arising during period | (13,394) | 42 | (22) |
Tax effect | 2,947 | (9) | 9 |
Reclassification adjustment for gains (losses) included in interest expense | (349) | 155 | 275 |
Tax effect | 77 | (34) | (105) |
Net of tax amount | (10,719) | 154 | 157 |
Change in pension plan obligation: | |||
Change in pension and retiree medical plan obligation during period | 25 | 490 | (589) |
Tax effect | (5) | (108) | 224 |
Reclassification adjustment for changes included in net income | 8,053 | 1,187 | 908 |
Tax effect | (1,772) | (261) | (346) |
Net of tax amount | 6,301 | 1,308 | 197 |
Other comprehensive income (loss), net of tax | 25,898 | (11,507) | (2,216) |
Comprehensive income | $ 212,381 | $ 167,364 | $ 85,338 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common StockSoutheastern Bank Financial | Common StockPark Sterling Corporation | Common Stock | SurplusSoutheastern Bank Financial | SurplusPark Sterling Corporation | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Southeastern Bank Financial | Park Sterling Corporation | Total |
Balance at Dec. 31, 2016 | $ 60,576 | $ 711,307 | $ 370,916 | $ (8,211) | $ 1,134,588 | ||||||
Balance (in shares) at Dec. 31, 2016 | 24,230,392 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 87,554 | 87,554 | |||||||||
Other comprehensive income (loss), net of tax effects | (2,216) | (2,216) | |||||||||
Comprehensive income | 85,338 | ||||||||||
Cash dividends declared on common stock per share | (38,623) | (38,623) | |||||||||
Employee stock purchases | $ 32 | 1,023 | 1,055 | ||||||||
Employee stock purchases (in shares) | 12,798 | ||||||||||
Stock options exercised | $ 149 | 1,816 | 1,965 | ||||||||
Stock options exercised (in shares) | 59,480 | ||||||||||
Restricted stock awards | $ 53 | (53) | |||||||||
Restricted stock awards (in shares) | 21,628 | ||||||||||
Stock issued pursuant to restricted stock units | $ 95 | (95) | |||||||||
Stock issued pursuant to restricted stock units (in shares) | 37,802 | ||||||||||
Common stock issued for acquisition | $ 12,446 | $ 18,701 | $ 422,163 | $ 669,865 | $ 434,609 | $ 688,566 | |||||
Common stock issued for acquisition (in shares) | (4,978,338) | (7,480,343) | |||||||||
Common stock repurchased | $ (153) | (5,359) | (5,512) | ||||||||
Common stock repurchased (in shares) | (61,125) | ||||||||||
Share-based compensation expense | 6,934 | 6,934 | |||||||||
Balance at Dec. 31, 2017 | $ 91,899 | 1,807,601 | 419,847 | (10,427) | 2,308,920 | ||||||
Balance (in shares) at Dec. 31, 2017 | 36,759,656 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 178,871 | 178,871 | |||||||||
Other comprehensive income (loss), net of tax effects | (11,507) | (11,507) | |||||||||
Comprehensive income | 167,364 | ||||||||||
Cash dividends declared on common stock per share | (50,557) | (50,557) | |||||||||
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | 2,947 | (2,947) | (2,947) | ||||||||
Employee stock purchases | $ 45 | 1,286 | 1,331 | ||||||||
Employee stock purchases (in shares) | 18,110 | ||||||||||
Stock options exercised | $ 84 | 948 | 1,032 | ||||||||
Stock options exercised (in shares) | 33,424 | ||||||||||
Restricted stock awards | $ 10 | (10) | |||||||||
Restricted stock awards (in shares) | 4,069 | ||||||||||
Stock issued pursuant to restricted stock units | $ 99 | (99) | |||||||||
Stock issued pursuant to restricted stock units (in shares) | 39,541 | ||||||||||
Common stock repurchased - buyback plan | $ (2,500) | (65,904) | (68,404) | ||||||||
Common stock repurchased - buyback plan (in shares) | (1,000,000) | ||||||||||
Common stock repurchased | $ (63) | (2,110) | (2,173) | ||||||||
Common stock repurchased (in shares) | (25,251) | ||||||||||
Share-based compensation expense | 8,783 | 8,783 | |||||||||
Balance at Dec. 31, 2018 | $ 89,574 | 1,750,495 | 551,108 | (24,881) | $ 2,366,296 | ||||||
Balance (in shares) at Dec. 31, 2018 | 35,829,549 | 35,829,549 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 186,483 | $ 186,483 | |||||||||
Other comprehensive income (loss), net of tax effects | 25,898 | 25,898 | |||||||||
Comprehensive income | 212,381 | ||||||||||
Cash dividends declared on common stock per share | (57,696) | (57,696) | |||||||||
Employee stock purchases | $ 53 | 1,341 | 1,394 | ||||||||
Employee stock purchases (in shares) | 21,100 | ||||||||||
Stock options exercised | $ 92 | 1,138 | 1,230 | ||||||||
Stock options exercised (in shares) | 36,978 | ||||||||||
Restricted stock awards | $ 15 | (15) | |||||||||
Restricted stock awards (in shares) | 5,889 | ||||||||||
Stock issued pursuant to restricted stock units | $ 129 | (129) | |||||||||
Stock issued pursuant to restricted stock units (in shares) | 51,543 | ||||||||||
Common stock repurchased - buyback plan | $ (5,413) | (151,532) | (156,945) | ||||||||
Common stock repurchased - buyback plan (in shares) | (2,165,000) | ||||||||||
Common stock repurchased | $ (89) | (2,397) | (2,486) | ||||||||
Common stock repurchased (in shares) | (35,674) | ||||||||||
Share-based compensation expense | 8,839 | 8,839 | |||||||||
Balance at Dec. 31, 2019 | $ 84,361 | $ 1,607,740 | $ 679,895 | $ 1,017 | $ 2,373,013 | ||||||
Balance (in shares) at Dec. 31, 2019 | 33,744,385 | 33,744,385 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Consolidated Statements of Changes in Shareholders' Equity | |||
Cash dividends declared, per share (in dollars per share) | $ 1.67 | $ 1.38 | $ 1.32 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 186,483 | $ 178,871 | $ 87,554 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 33,121 | 35,696 | 28,704 |
Provision for loan losses | 12,777 | 13,783 | 11,890 |
Deferred income taxes | (1,492) | 15,176 | 5,640 |
Revision of provisional amount related to the revaluation of deferred taxes from the Tax Reform Act | (991) | 26,558 | |
Other-than-temporary impairment on securities | 753 | ||
(Gains) losses on sale of securities, net | (2,711) | 655 | (1,421) |
Share-based compensation expense | 8,839 | 8,783 | 6,934 |
Accretion of discount related to performing acquired loans | (12,986) | (27,756) | (15,893) |
Loss on disposal of premises and equipment | 3,617 | 1,568 | 177 |
(Gains) losses on sale of OREO | 178 | (1,969) | 101 |
Net amortization of premiums on investment securities | 7,260 | 7,567 | 6,853 |
OREO write downs | 1,193 | 1,420 | 2,249 |
Fair value adjustment for loans held for sale | (1,057) | (521) | 752 |
Originations and purchases of loans held for sale | (860,092) | (631,328) | (682,403) |
Proceeds from sales of loans | 824,712 | 679,811 | 745,871 |
Net change in: | |||
Accrued interest receivable | (777) | (3,269) | (2,198) |
Prepaid assets | (2,411) | 1,951 | 6 |
Operating Leases | 1,457 | ||
Miscellaneous other assets | (44,767) | (1,168) | (32,324) |
Accrued interest payable | 197 | 1,930 | (948) |
Accrued income taxes | (8,536) | 143 | 1,959 |
Miscellaneous other liabilities | 36,023 | 3,359 | 7,076 |
Net cash provided by operating activities | 181,028 | 283,711 | 197,890 |
Cash flows from investing activities: | |||
Proceeds from sales of investment securities available for sale | 242,733 | 73,054 | 374,938 |
Proceeds from maturities and calls of investment securities held to maturity | 2,530 | 3,570 | |
Proceeds from maturities and calls of investment securities available for sale | 308,109 | 224,713 | 235,757 |
Proceeds from sales of other investment securities | 45 | 15,938 | 15,302 |
Purchases of investment securities available for sale | (955,505) | (191,313) | (241,274) |
Purchases of other investment securities | (23,566) | (18,494) | (4,553) |
Net increase in loans | (363,446) | (391,428) | (636,836) |
Net cash received from acquisitions | 185,163 | ||
Recoveries of loans previously charged off | 3,914 | 3,300 | 3,430 |
Purchases of premises and equipment | (15,798) | (14,538) | (15,163) |
Proceeds from sale of OREO | 8,450 | 13,943 | 18,751 |
Proceeds from sale of premises and equipment | 11 | 146 | 15 |
Net cash used in investing activities | (795,053) | (282,149) | (60,900) |
Cash flows from financing activities: | |||
Net increase in deposits | 530,163 | 114,779 | 226,045 |
Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase and other short-term borrowings | 28,092 | (16,208) | (27,930) |
Proceeds from other borrowings | 700,001 | 590,001 | 100,000 |
Repayment of other borrowings | (150,007) | (540,007) | (390,811) |
Common stock issuance | 1,394 | 1,331 | 1,055 |
Common stock repurchases | (159,431) | (70,577) | (5,512) |
Dividends paid on common stock | (57,696) | (50,557) | (38,623) |
Stock options exercised | 1,230 | 1,032 | 1,965 |
Net cash provided by (used in) financing activities | 893,746 | 29,794 | (133,811) |
Net increase in cash and cash equivalents | 279,721 | 31,356 | 3,179 |
Cash and cash equivalents at beginning of period | 408,983 | 377,627 | 374,448 |
Cash and cash equivalents at end of period | 688,704 | 408,983 | 377,627 |
Cash paid for: | |||
Interest | 86,355 | 52,062 | 17,962 |
Income taxes | 55,674 | 31,941 | 48,028 |
Initial measurement and recognition of operating lease assets in exchange for lease liabilities per ASU 2016-02 | 82,160 | ||
Recognition of operating lease assets in exchange for lease liabilities | 10,239 | ||
Acquisitions: | |||
Fair value of tangible assets acquired | (7,247) | 4,900,334 | |
Other intangible assets acquired | 3,321 | 44,295 | |
Liabilities assumed | (612) | 4,477,801 | |
Net identifiable assets acquired over liabilities assumed | (3,314) | 466,828 | |
Common stock issued in acquisition | 1,123,175 | ||
Loans sold that have not settled | 28,663 | ||
Real estate acquired in full or in partial settlement of loans | $ 8,666 | $ 13,391 | $ 11,558 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1—Summary of Significant Accounting Policies Nature of Operations South State Corporation (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly owned subsidiary, South State Bank (the “Bank”). The Bank operates South State Advisory, Inc. (formerly First Southeast 401k Fiduciaries, Inc.), a wholly-owned registered investment advisor. We merged Minis & Co., Inc., another registered investment advisor that was wholly-owned by the Bank, with and into South State Advisory, Inc. effective January 1, 2019. We will continue to use the name Minis & Company as a Doing Business As (DBA) going forward. The Bank provides general banking services within million of trust preferred securities, including: SCBT Capital Trust I at $12.0 million; SCBT Capital Trust II at $8.0 million; SCBT Capital Trust III at $20.0 million; TSB Statutory Trust I at $3.0 million; SAVB Capital Trust I at $6.0 million; SAVB Capital Trust II at $4.0 million; Southeastern Bank Financial Statutory Trust I at $10.0 million; Southeastern Bank Financial Statutory Trust II at $10.0 million; Provident Community Bancshares Capital Trust I at $4.0 million; FCRV Statutory Trust I at $5.0 million; Community Capital Statutory Trust I at $10.0 million; CSBC Statutory Trust I at $15.0 million and Provident Community Bancshares Capital Trust II at $8.0 million. Unless otherwise mentioned or unless the context requires otherwise, references herein to "South State," the "Company" "we," "us," "our" or similar references mean South State Corporation and its consolidated subsidiary. References to the “Bank” means South State Bank, a South Carolina banking corporation. Basis of Consolidation The consolidated financial statements include the accounts of the Company and other entities in which it has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. Assets held by the Company in trust are not assets of the Company and are not included in the accompanying consolidated financial statements. Segments The Company, through its subsidiary, provides a broad range of financial services to individuals and companies in South Carolina, North Carolina, Georgia and Virginia. These services include demand, time and savings deposits; lending and credit card servicing; ATM processing; mortgage banking services; and wealth management and trust services. While the Company’s decision makers monitor the revenue streams of the various financial products and services, operations are managed and financial performance is evaluated on an organization-wide basis. Accordingly, the Company’s banking and finance operations are not considered by management to constitute more than one reportable operating segment. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, fair value of financial instruments, fair values of assets and liabilities acquired in business combinations, loss estimates related to loans and other real estate acquired, evaluating other-than-temporary impairment of investment securities, goodwill impairment tests and valuation of deferred tax assets In connection with the determination of the allowance for loan losses, management has identified specific loans as well as adopted a policy of providing amounts for loan valuation purposes which are not identified with any specific loan but are derived from actual loss experience ratios, loan types, loan volume, economic conditions and industry standards. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, regulatory agencies, as an integral part of the examination process, periodically review the banking subsidiary’s allowance for loan losses. Such agencies may require additions to the allowance based on their judgments about information available to them at the time of their examination. Concentrations of Credit Risk The Company’s subsidiary grants agribusiness, commercial, and residential loans to customers throughout South Carolina, North Carolina, Virginia and Georgia. Although the subsidiary has a diversified loan portfolio, a substantial portion of their borrowers’ abilities to honor their contracts is dependent upon economic conditions within South Carolina, North Carolina, Virginia, Georgia and the surrounding regions. The Company considers concentrations of credit to exist when, pursuant to regulatory guidelines, the amounts loaned to a multiple number of borrowers engaged in similar business activities which would cause them to be similarly impacted by general economic conditions represents 25% of total risk-based capital, or $375.3 million at December 31, 2019. Based on this criteria, the Company had four such credit concentrations at December 31, 2019, including loans on hotels and motels of $574.6 million, loans to lessors of nonresidential buildings (except mini-warehouses) of $1.4 billion, loans on owner occupied office buildings of $380.5 million and loans to lessors of residential buildings (investment properties and multi-family) of $570.9 million. The risk for these loans and for all loans is managed collectively through the use of credit underwriting practices developed and updated over time. The loss estimate for these loans is determined using our standard ALLL methodology. Cash and Cash Equivalents For the purpose of presentation in the consolidated statements of cash flows, cash and cash equivalents include cash on hand, cash items in process of collection, amounts due from banks, interest bearing deposits with banks, purchases of securities under agreements to resell, and federal funds sold. Due from bank balances are maintained at other financial institutions. Federal funds sold are generally purchased and sold for one-day periods, but may, from time to time, have longer terms. The Company enters from time to time into purchases of securities under agreements to resell substantially identical securities typically for the purpose of obtaining securities on a short-term basis for collateralizing certain customer deposit relationships. Securities purchased under agreements to resell during December 31, 2019 and 2018 consisted of U.S. government-sponsored entities and agency mortgage-backed securities. It is the Company’s policy to take possession of securities purchased under agreements to resell. The securities are delivered into the Company’s account maintained by a third- party custodian designated by the Company under a written custodial agreement that explicitly recognizes the Company’s interest in the securities. The Company monitors the market value of the underlying securities, including accrued interest, which collateralizes the related receivable on agreements to resell. Historically, these agreements were considered to be cash equivalents with maturities of three months or less. The Company held no securities under agreements to resell at December 31, 2019. Investment Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and carried at amortized cost. Securities not classified as held to maturity, including equity securities with readily determinable fair values, are classified as “available for sale” and carried at fair value with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using methods approximating the interest method over the terms of the securities. Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. Gains and losses realized on sales of securities available for sale are determined using the specific identification method. The Company evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. In estimating OTTI losses, management considers: (1) the financial condition and near-term prospects of the issuer, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or for a debt security whether it is more-likely-than-not that the Company will be required to sell the debt security prior to recovering its fair value, and (5) the anticipated outlook for changes in the general level of interest rates. (see Note 3—Investment Securities). Other investments include stock acquired for regulatory purposes, investments in unconsolidated subsidiaries and other nonmarketable investment securities. Stock acquired for regulatory purposes include Federal Home Loan Bank of Atlanta (“FHLB”) stock. These securities do not have a readily determinable fair value because their ownership is restricted and they lack a market for trading. As a result, these securities are carried at cost and are periodically evaluated for impairment. Investments in unconsolidated subsidiaries represent a minority investment in SCBT Capital Trust I, SCBT Capital Trust II, SCBT Capital Trust III, TSB Statutory Trust I, SAVB Capital Trust I, SAVB Capital Trust II, Southeastern Bank Financial Statutory Trust I, Southeastern Bank Financial Statutory Trust II, Provident Community Bancshares Capital Trust I, FCRV Statutory Trust I, Community Capital Statutory Trust I, CSBC Statutory Trust I and Provident Community Bancshares Capital Trust II. These investments are recorded at cost and the Company receives quarterly dividend payments on these investments. Other nonmarketable investment securities consists of Business Development Corporation stock and stock in Banker’s Banks. These investments also do not have a readily determinable fair value because their ownership is restricted and they lack a market for trading. As a result, these securities are carried at cost and are periodically evaluated for impairment. Loans Held for Sale Loans originated and intended for sale are carried at the estimated fair value in the aggregate. Estimated fair value is determined on the basis of existing forward commitments, or the current market value of similar loans. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Loans held-for-sale are sold to investors either under guaranteed delivery or with the best effort intent and ability to sell loans as long as they meet the underwriting standards of the potential investor. Loans Loans that management has originated and has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their unpaid principal balances, less unearned income and net of any deferred loan fees and costs. Unearned income on installment loans is recognized as income over the terms of the loans by methods that generally approximate the interest method. Interest on other loans is calculated by using the simple interest method on daily balances of the principal amount outstanding. We place non- acquired loans and acquired non-credit impaired loans on nonaccrual once reasonable doubt exists about the collectability of all principal and interest due. Generally, this occurs when principal or interest is 90 days or more past due, unless the loan is well secured and in the process of collection. A loan is considered impaired when, in management’s judgment, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines when loans become impaired through its normal loan administration and review functions. Loans identified as nonaccrual are potentially impaired loans. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired, provided that management expects to collect all amounts due, including interest accrued at the contractual interest rate for the period of delay. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Interest income recognition on non-acquired impaired loans is discontinued when the loans meet the criteria for nonaccrual status described above. Large groups of smaller balance homogeneous non-acquired loans are collectively evaluated for loss and a general reserve is established accordingly. Acquired credit impaired loans are initially recorded at a discount to recognize the difference in the fair value of the loans and the contractual balance. The discount includes a component to recognize the absolute difference between the contractual value and the amount expected to be collected (total cash flow) as well as a component to recognize the net present value of that future amount to be collected. The net present value component is accretable into income, and therefore generates a yield on all acquired credit impaired loans, regardless of past due status. Therefore, acquired credit impaired loans are considered to be accruing loans. Acquired credit impaired loans that are greater than 90 days past due are placed into the greater than 90 days past due and still accruing category when analyzing the aging status of the loan portfolio. See Note 4—Loans and Allowance for Loan Losses for further detail. Troubled Debt Restructurings (“TDRs”) The Bank designates loan modifications as TDRs when, for economic or legal reasons related to the borrower’s financial difficulties, it grants a concession to the borrower that it would not otherwise consider. Loans on nonaccrual status at the date of modification are initially classified as nonaccrual TDRs. Loans on accruing status at the date of modification are initially classified as accruing TDRs at the date of modification, if the note is reasonably assured of repayment and performance is in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the modification date if reasonable doubt exists as to the collection of interest or principal under the restructuring agreement. Nonaccrual TDRs are returned to accruing status when there is economic substance to the restructuring, there is well documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months). Allowance for Loan Losses The allowance for loan losses is established for estimated loan losses through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general and specific reserves. The general reserves are determined, for loans not identified as impaired, by applying loss percentages to the portfolio that are based on historical loss experience and management’s evaluation and “risk grading” of the loan portfolio. Additionally, the general economic and business conditions affecting key lending areas, credit quality trends, collateral values, loan volumes and concentrations, seasoning of the loan portfolio, the findings of internal and external credit reviews and results from external bank regulatory examinations are included in this evaluation. The specific reserves are determined, for impaired loans, on a loan-by-loan basis based on management’s evaluation of the Company’s exposure for each credit, given the current payment status of the loan and the value of any underlying collateral. Management evaluates nonaccrual loans and TDRs regardless of accrual status to determine whether or not they are impaired. For such loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The Company requires updated appraisals on at least an annual basis for impaired loans that are collateral dependent. Generally, the need for specific reserve is evaluated on impaired loans, and once a specific reserve is established for a loan, a charge off of that amount occurs in the quarter subsequent to the establishment of the specific reserve. Although management uses available information to estimate losses on loans, because of uncertainties associated with local, regional, and national economic conditions, collateral values, and future cash flows on impaired loans, and subjection of the model to the review of regulatory authorities, it is reasonably possible that a material change could occur in the allowance for loan losses in the near term. However, the amount of the change that is reasonably possible cannot be estimated. Other Real Estate Owned Other real estate owned (“OREO”), consisting of properties obtained through foreclosure or through a deed in lieu of foreclosure in satisfaction of loans and property originally acquired for further branch expansion (formerly classified as premises and equipment), is reported at the lower of cost or fair value, determined on the basis of current valuations obtained principally from independent sources, adjusted for estimated selling costs. At the time of foreclosure or initial possession of collateral, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the allowance for loan losses. Subsequent declines in the fair value of OREO below the new cost basis are recorded through valuation adjustments. Significant judgments and complex estimates are required in estimating the fair value of other real estate, and the period of time within which such estimates can be considered current is significantly shortened during periods of market volatility. In response to market conditions and other economic factors, management may utilize liquidation sales as part of its problem asset disposition strategy. As a result of the significant judgments required in estimating fair value and the variables involved in different methods of disposition, the net proceeds realized from sales transactions could differ significantly from the valuations used to determine the fair value of OREO. Management reviews the value of OREO each quarter and adjusts the values as appropriate. Revenue and expenses from OREO operations as well as gains or losses on sales and any subsequent adjustments to the value are recorded as OREO expense and loan related expense, a component of non-interest expense. Business Combinations and Method of Accounting for Loans Acquired The Company accounts for its acquisitions under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations Fair Value Measurements and Disclosures Acquired credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality, found in FASB ASC Topic 310-30, Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality Loans acquired through business combinations that do not meet the specific criteria of FASB ASC Topic 310-30, but for which a discount is attributable at least in part to credit quality are generally accounted for under this guidance. As a result, related discounts are recognized subsequently through accretion based on the expected cash flow of the acquired loans. Certain acquired loans, such as lines of credit (consumer and commercial) and loans for which there was no discount attributable to credit are accounted for in accordance with FASB ASC Topic 310-20, where the discount is accreted through earnings based on estimated cash flows over the estimated life of the loan. Subsequent to the acquisition date, increases in cash flows expected to be received in excess of the Company’s initial estimates are reclassified from nonaccretable difference to accretable yield and are accreted into interest income on a level-yield basis over the remaining life of the loan. Decreases in cash flows expected to be collected are recognized as impairment through the provision for loan losses. Probable and significant increases in cash flows (in a loan pool where an allowance for acquired loan losses was previously recorded) reduces the remaining allowance for acquired loan losses before recalculating the amount of accretable yield percentage for the loan pool in accordance with ASC 310-30. Premises and Equipment Land is carried at cost. Office equipment, furnishings, and buildings are carried at cost less accumulated depreciation computed principally on the declining-balance and straight-line methods over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line method over the shorter of the estimated useful lives of the improvements or the terms of the related leases including lease renewals only when the Company is reasonably assured of the aggregate term of the lease. Additions to premises and equipment and major replacements are added to the accounts at cost. Maintenance and repairs and minor replacements are charged to expense when incurred. Gains and losses on routine dispositions are reflected in current operations. Leases (Topic 842) and Method of Adoption On January 1, 2019, we adopted the requirements of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; ASU No. 2018-11, Targeted Improvements; and ASU No. 2019-01, Codification Improvements to Topic 842 Leases. The purpose of the update was to increase transparency and comparability between organizations that enter into lease agreements. The key difference between the previous guidance and the update is the recognition of a right-of-use asset (ROU) and lease liability on the statement of financial position for those leases previously classified as operating leases under the old guidance. Accounting Standards Codification (“ASC”) Topic 842 defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. In applying this standard, we reviewed our material contracts to determine if they included a lease by this new definition and did not identify any new leases. Our lease agreements in which ASC Topic 842 has been applied are primarily for real estate properties, including retail branch locations, operations and administration locations and stand-alone ATM locations. These leases have lease terms from greater than . Related to lease payment terms, some are fixed payments or based on a fixed annual increases while others are variable and the annual increases are based on market rates. We performed an analysis on equipment leases for the implementation of ASC Topic 842 and determined the number and dollar amount of our equipment leases was not material. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We chose the transition method of adoption provided by ASU 2018-11, Leases (Topic 842) – Targeted Improvements, where we initially apply the new lease standard at the effective date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption if applicable. Therefore, we applied this standard to all existing leases as of the adoption date of January 1, 2019, recording a ROU asset and a lease liability in an equal amount. We did not have a cumulative-effect adjustment to the opening balance of retained earnings. With this transition method, we did not have to restate comparative prior periods presented in the financial statements related to ASC Topic 842, but will present comparative prior periods disclosures using the previous accounting guidance for leases. This adoption method is considered a change in accounting principle requiring additional disclosure of the nature of and reason for the change, which is solely a result of the adoption of the required standard. ASC Topic 842 provides a package of practical expedients in applying the lease standard that had to be chosen at the date of adoption. We chose to elect this package of practical expedients. With this election, we do not have to reassess whether any expired or existing contracts are or contain a lease, do not have to reassess the classification of any expired or existing leases, do not have to separate lease and non-lease components and can account for both as a single lease component, and do not have to reassess initial direct costs or cash incentives for any existing leases due to immateriality. In addition, we chose not to apply ASC Topic 842 to short-term leases (leases with terms of 12 months or less) and not to record an underlying ROU asset or lease liability based on the uncertainty around the renewal of these leases. We will recognize lease expense for such leases on a straight-line basis over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We determined that we do not have any leases classified as finance leases and that all of our leases are operating leases. ROU assets and liabilities for operating leases are recognized at commencement date based on present value of lease payments not yet paid, discounted using the discount rate for the lease at the lease commencement date over the lease term. For operating leases, lease expense is determined by the sum of the lease payments to be recognized on a straight-line basis over the lease term. Based on the transition method that we chose to follow, the commencement date of the lease term for all existing leases is January 1, 2019. The lease term used for the calculation of the initial ROU asset and lease liability will include the initial lease term in addition to any renewal options or termination costs in the lease that we think are reasonably certain to be exercised or incurred. We received input from several levels of management and our corporate real estate department in determining which options were reasonably certain to be exercised. A discount rate is also needed in the calculation of the initial ROU assets and lease liability. ASC Topic 842 requires that the implicit rate within the lease agreement be used if available. If not available, we should use its incremental borrowing rate in effect at the time of the lease commencement date. We looked at the incremental borrowing rate from several of our borrowing sources to determine an average rate to be used in the calculation of the initial ROU asset and lease liability. We also considered the term of the borrowings as they relate to the terms of the leases. liability million at the commencement date of January 1, 2019. We did not have a cumulative-effect adjustment to the opening balance of retained earnings at commencement. As of December 31, 2019, we had ROU assets of million recorded within other liabilities on the balance sheet. The adoption of ASC Topic 842 did not have a material impact on our consolidated income statement. Bank Owned Life Insurance Bank owned life insurance (BOLI) are comprised of long-term life insurance contracts on the lives of certain current and past employees where the insurance policy benefits and ownership are retained by the employer. Its cash surrender value is an asset that the Company uses to partially offset the future cost of employee benefits. The cash value accumulation on BOLI is permanently tax deferred if the policy is held to the insured person’s death and certain other conditions are met. Intangible Assets Intangible assets consist of goodwill, core deposit intangibles, client list intangibles, and noncompetition agreement (“noncompete”) intangibles that result from the acquisition of other banks or branches from other financial institutions. Core deposit intangibles represent the value of long-term deposit relationships acquired in these transactions. Client list intangibles represent the value of long-term client relationships for the wealth and trust management business. Noncompete intangibles represent the value of key personnel relative to various competitive factors such as ability to compete, willingness or likelihood to compete, and feasibility based upon the competitive environment, and what the Bank could lose from competition. Goodwill represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. The goodwill impairment analysis is a two-step test. The first step, used to identify potential impairment, involves comparing the reporting unit’s estimated fair value to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill assigned to that reporting unit is considered not to be impaired. If the carrying value exceeds estimated fair value, there is an indication of potential impairment and the second step is performed to measure the amount of impairment of goodwill assigned to that reporting unit. If required, the second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination, by measuring the excess of the estimated fair value of the reporting unit, as determined in the first step, over the aggregate estimated fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied f |
Mergers and Acquisitions
Mergers and Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Mergers and Acquisitions | |
Mergers and Acquisitions | Note 2—Mergers and Acquisitions The following are business combinations which have occurred over the past three years: ● Park Sterling Corporation (“PSC” or “Park”) – November 30, 2017 – Whole bank acquisition ● Southeastern Bank Financial Corporation (“SBFC” or “Southeastern”) – January 3, 2017 – Whole bank acquisition Park Sterling Corporation On November 30, 2017, SSB acquired all of the outstanding common stock of Park Sterling Corporation (“PSC”), of Charlotte, North Carolina, the bank holding company for Park Sterling Bank (“PSB”), in a stock transaction. PSC common shareholders received 0.14 shares of the Company’s common stock in exchange for each share of PSC stock resulting in the Company issuing 7,480,343 shares of its common stock. In total, the purchase price for PSC was The PSC transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date. Initial Subsequent As Recorded Fair Value Fair Value As Recorded by (Dollars in thousands) by Park Adjustments Adjustments the Company Assets Cash and cash equivalents $ 116,454 $ — $ — $ 116,454 Investment securities 461,261 1,444 (a) 219 (a) 462,924 Loans held for sale 2,200 68,686 (b) (4) (b) 70,882 Loans, net of allowance and mark 2,346,612 (95,878) (c) (9,408) (c) 2,241,326 Premises and equipment 61,059 (4,882) (d) (387) (d) 55,790 Intangible assets 73,090 (46,915) (e) 3,321 (e) 29,496 OREO and repossessed assets 2,549 (429) (f) 210 (f) 2,330 Bank owned life insurance 72,703 — — 72,703 Deferred tax asset 17,963 11,596 (g) 2,123 (g) 31,682 Other assets 21,595 (476) (h) — 21,119 Total assets $ 3,175,486 $ (66,854) $ (3,926) $ 3,104,706 Liabilities Deposits: Noninterest-bearing $ 561,874 $ — $ — $ 561,874 Interest-bearing 1,886,810 2,692 (i) (612) (i) 1,888,890 Total deposits 2,448,684 2,692 (612) 2,450,764 Federal funds purchased and securities sold under agreements to repurchase — — — — Other borrowings 329,249 11,689 (j) — 340,938 Other liabilities 24,179 2,131 (k) — 26,310 Total liabilities 2,802,112 16,512 (612) 2,818,012 Net identifiable assets acquired over (under) liabilities assumed 373,374 (83,366) (3,314) 286,694 Goodwill — 402,951 3,314 406,265 Net assets acquired over liabilities assumed $ 373,374 $ 319,585 $ — $ 692,959 Consideration: South State Corporation common shares issued 7,480,343 Purchase price per share of the SSB's common stock $ 92.05 SSB common stock issued ($688,566) and cash exchanged for fractional shares ($88) $ 688,654 Cash paid for stock option redemptions 4,305 Fair value of total consideration transferred $ 692,959 Explanation of fair value adjustments (a)—Adjustment reflects marking the securities portfolio to fair value as of the acquisition date. (b)—Adjustment reflects a reclass of $68.7 million by SSB of Shared National Credits (loans) from loans held for investment to loans held for sale. (c)—Adjustment reflects the fair value adjustments (discount) of $70.4 million based on the Company’s evaluation of the acquired loan portfolio. This amount excludes the allowance for loan losses (“ALLL”) and fair value adjustment (discount) of (d)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired premises and equipment. (e)—Adjustment reflects the recording of a 1.66% Core Deposit Intangible (“CDI”) on the acquired deposit accounts that totaled $29.5 million offset by a write-off of $73.1 million of existing goodwill and CDI acquired from PSC. (f)—Adjustment reflects the fair value adjustments to other real estate owned (“OREO”) based on the Company’s evaluation of the acquired OREO portfolio. (g)—Adjustment to record deferred tax asset related to the fair value adjustments and an adjustment from the PSC tax rate to the SSB tax rate. (h)—Adjustment reflects the write-off of accrued interest receivable and along with certain prepaid expenses. (i)—Adjustment reflects the premium for fixed maturity time deposits of $2.3 million offset by the write-off of existing fair value marks of $253,000 acquired from PSC. (j)—Adjustment reflects the fair value adjustment (discount) of $2.4 million on PSC’s Trust Preferred Securities offset by the write-off of the existing PSC discount on its senior debt and TRUPs of $14.0 million. (k)—Adjustment reflects the fair value adjustments to employee benefit plans of $1.5 million along with other adjustments of miscellaneous liabilities. Southeastern Bank Financial Corporation On January 3, 2017, SSB acquired all of the outstanding common stock of Southeastern Bank financial Corporation (“SBFC”), of Augusta, Georgia, the bank holding company for Georgia Bank & Trust Company of Augusta (“GB&T”), in a stock transaction. SBFC common shareholders received 0.7307 shares of the Company’s common stock in exchange for each share of SBFC stock resulting in the Company issuing 4,978,338 shares of its common stock. In total, the purchase price for SBFC was The SBFC transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date. The following table presents the assets acquired and liabilities assumed as of January 3, 2017 at their initial and subsequent fair value estimates, as recorded by the Company. The fair value estimates were subject to refinement for up to one year after the closing date of the acquisition for new information obtained about facts and circumstances that existed at the acquisition date. Initial Subsequent As Recorded Fair Value Fair Value As Recorded by (Dollars in thousands) by SBFC Adjustments Adjustments the Company Assets Cash and cash equivalents $ 72,043 $ — $ — $ 72,043 Investment securities 591,824 (1,770) (a) — 590,054 Loans held for sale 13,652 — — 13,652 Loans, net of allowance and mark 1,060,618 (10,668) (b) — 1,049,950 Premises and equipment 25,419 (2,212) (c) 870 (c) 24,077 Intangible assets 140 17,980 (d) — 18,120 OREO and repossessed assets 580 (30) (e) (100) (e) 450 Bank owned life insurance 44,513 — — 44,513 Deferred tax asset 16,247 (687) (f) 515 (f) 16,075 Other assets 7,545 (482) (g) — 7,063 Total assets $ 1,832,581 $ 2,131 $ 1,285 $ 1,835,997 Liabilities Deposits: Noninterest-bearing $ 262,967 $ — $ — $ 262,967 Interest-bearing 1,257,953 — — 1,257,953 Total deposits 1,520,920 — — 1,520,920 Federal funds purchased and securities sold under agreements to repurchase 1,014 — — 1,014 Other borrowings 110,620 (1,120) (h) — 109,500 Other liabilities 19,980 5,553 (i) 2,210 (i) 27,743 Total liabilities 1,652,534 4,433 2,210 1,659,177 Net identifiable assets acquired over (under) liabilities assumed 180,047 (2,302) (925) 176,820 Goodwill — 257,370 925 258,295 Net assets acquired over liabilities assumed $ 180,047 $ 255,068 $ — $ 435,115 Consideration: South State Corporation common shares issued 4,978,338 Purchase price per share of the Company's common stock $ 87.30 Company common stock issued ($434,609) and cash exchanged for fractional shares ($16) $ 434,625 Cash paid for stock option redemptions 490 Fair value of total consideration transferred $ 435,115 Explanation of fair value adjustments (a)—Adjustment reflects marking the securities portfolio to fair value as of the acquisition date. (b)—Adjustment reflects the fair value adjustments of $30.7 million based on the Company’s evaluation of the acquired loan portfolio and excludes the allowance for loan losses (“ALLL”) of $20.1 million recorded by SBFC. (c)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired premises and equipment. (d)—Adjustment reflects the recording of the core deposit intangible on the acquired deposit accounts that totaled $18.1 million. (e)—Adjustment reflects the fair value adjustments to other real estate owned (“OREO”) and repossessed assets based on the Company’s evaluation of the acquired OREO and repossessed assets portfolio. (f)—Adjustment to record deferred tax asset related to the fair value adjustments. (g)—Adjustment reflects uncollectible portion of accrued interest receivable and loan fees receivable along with the write-off of certain prepaid expenses. (h)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of other borrowings of Trust Preferred Securities with a discount of $2.1 million, netted with premium on certain Federal Home Loan Bank (“FHLB “) advances of $1.0 million. (i)—Adjustment reflects the fair value adjustments to employee benefit plans of $8.3 million netted against an adjustment of other miscellaneous liabilities of $496,000. Comparative and Pro Forma Financial Information for Acquisitions in 2017 The results of the Company for the year ended December 31, 2017, include the results of the acquired assets and assumed liabilities for the 362 days subsequent to the acquisition date of January 3, 2017 related to the SBFC acquisition and for 31 days subsequent to the acquisition date of November 30, 2017 related to the PSC acquisition. Merger-related charges of million are recorded in the consolidated statement of income for year ended December 31, 2017 and include incremental costs related to closing of the acquisitions, including legal, accounting and auditing, investment banker cost, termination of certain employment related contracts, travel costs, printing, supplies and other costs. Merger-related charges of The following table discloses the impact of the mergers (excluding the impact of merger-related expenses and of the revaluation of the net deferred tax asset due to the Tax Reform Act) with SBFC since the acquisition on January 3, 2017 through December 31, 2017 and with PSC since the acquisition on November 30, 2017 through December 31, 2017. The table also presents certain pro forma information as if SBFC and PSC had been acquired on January 1, 2017. These results combine the historical results of SBFC and PSC in the Company’s consolidated statement of income and, while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on January 1, 2017. The Company could not reasonably disclose the impact of the mergers with SBFC and PSC on the year ended December 31, 2018. During 2018, the assets and liabilities of SBFC and PSC became fully integrated into the Company to the point where it became impracticable to be able to break out the individual effects from each merger on the Company’s income statement. Merger-related costs of $50.0 million from the SBFC and PSC acquisitions were incurred during the year ended December 31, 2017, and were excluded from pro forma information below. In addition, no adjustments have been made to the pro formas to eliminate the provision for loan losses for the years ended December 31, 2017 of SBFC and PSC in the amount of . No adjustments have been made to reduce the impact of any OREO write downs, investment securities sold or repayment of borrowings recognized by SBFC and PSC in either the years ended December 31, 2017. The pro forma net adjusted income available to the common shareholder for December 31, 2017 includes the Company’s million of income tax expense recorded as a result of the revaluation of the Company’s net deferred tax asset in connection with the Tax Reform Act signed into law during 2017. Expenses related to systems conversions and other costs of integration were recorded during 2018 for the PSC merger. SBFC PSC Actual since Actual since Acquisition Acquisition Pro Forma (January 3, 2017 through (November 30, 2017 through Year Ended (Dollars in thousands) December 31, 2017) December 31, 2017) December 31, 2017 Total revenues (net interest income plus noninterest income) $ 67,823 $ 14,052 $ 690,716 Net adjusted income available to the common shareholder $ 25,790 $ 4,829 $ 146,821 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investment Securities | |
Investment Securities | Note 3—Investment Securities The following is the amortized cost and fair value of investment securities available for sale: Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value December 31, 2019: Government-sponsored entities debt* $ 25,356 $ 585 $ — $ 25,941 State and municipal obligations 204,150 5,029 (764) 208,415 Mortgage-backed securities** 1,711,257 14,209 (3,775) 1,721,691 $ 1,940,763 $ 19,823 $ (4,539) $ 1,956,047 December 31, 2018: Government-sponsored entities debt* $ 48,982 $ 21 $ (752) $ 48,251 State and municipal obligations 200,184 1,709 (1,125) 200,768 Mortgage-backed securities** 1,291,484 697 (24,133) 1,268,048 $ 1,540,650 $ 2,427 $ (26,010) $ 1,517,067 * The Company’s government-sponsored entities holdings are comprised of debt securities offered by Federal Home Loan Mortgage Corporation (“FHLMC”) or Freddie Mac, Federal National Mortgage Association (“FNMA”) or Fannie Mae, FHLB, and Federal Farm Credit Banks (“FFCB”). Also included in the Company’s government-sponsored entities are debt securities offered by the Small Business Administration (“SBA”), which have the full faith and credit backing of the United States Government. ** All of the mortgage-backed securities are issued by government-sponsored entities; there are no private-label holdings. The following is the amortized cost and carrying value of other investment securities: Carrying (Dollars in thousands) Value December 31, 2019: Federal Home Loan Bank stock $ 43,044 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 2,517 $ 49,124 December 31, 2018: Federal Home Loan Bank stock $ 19,524 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 2,517 $ 25,604 The Company’s other investment securities consist of non-marketable equity securities that have no readily determinable market value. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. As of December 31, 2019, the Company has determined that there was no impairment on its other investment securities. The amortized cost and fair value of debt and equity securities at December 31, 2019 by contractual maturity are detailed below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. Securities Available for Sale Amortized Fair (Dollars in thousands) Cost Value Due in one year or less $ 7,267 $ 7,315 Due after one year through five years 54,662 55,286 Due after five years through ten years 442,830 447,167 Due after ten years 1,436,004 1,446,279 $ 1,940,763 $ 1,956,047 The following table summarizes information with respect to sales of available-for-sale securities: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Securities Available for Sale: Sale proceeds $ 242,733 $ 73,054 $ 374,938 Gross realized gains $ 6,030 $ 31 $ 1,832 Gross realized losses (3,319) (686) (411) Net realized gain $ 2,711 $ (655) $ 1,421 There was a net realized gain of $2.7 million on the sale of securities for the year ended December 31, 2019, respectively, compared to a net realized loss of $655,000 for the year ended December 31, 2018, respectively. The net realized gain of million from the sale of VISA Class B shares in the first and second quarters of 2019. If the gains from the VISA Class B share are excluded in 2019, the Company would have had a net realized loss of There were no sales of held-to-maturity securities for year ended December 31, 2019, 2018 or 2017. The Company had 143 securities with gross unrealized losses at December 31, 2019. Information pertaining to securities with gross unrealized losses at December 31, 2019 and 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: Less Than Twelve Months Twelve Months or More Gross Gross Unrealized Fair Unrealized Fair (Dollars in thousands) Losses Value Losses Value December 31, 2019: Securities Available for Sale Government-sponsored entities debt $ — $ — $ — $ — State and municipal obligations 764 42,070 — — Mortgage-backed securities 2,422 461,658 1,353 141,982 $ 3,186 $ 503,728 $ 1,353 $ 141,982 December 31, 2018: Securities Available for Sale Government-sponsored entities debt $ 100 $ 10,571 $ 652 $ 32,959 State and municipal obligations 760 40,387 365 14,231 Mortgage-backed securities 5,182 405,055 18,951 755,223 $ 6,042 $ 456,013 $ 19,968 $ 802,413 Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the financial condition and near-term prospects of the issuer, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or for a debt security whether it is more-likely-than-not that the Company will be required to sell the debt security prior to recovering its fair value, and (5) the anticipated outlook for changes in the general level of interest rates. As part of the Company’s evaluation of its intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, the Company considers its investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. The unrealized loss position of the debt securities decreased during 2019 from the unrealized loss position in 2018. This change was primarily related to the drop in both short and long term interest rates during the year. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, the results of reviews of the issuer’s financial condition, and the issuer’s anticipated ability to pay the contractual cash flows of the investments. The Company does not currently intend to sell the securities within the portfolio and it is not more-likely-than-not that the Company will be required to sell the debt securities; therefore, management does not consider these investments to be other-than-temporarily impaired at December 31, 2019. Management continues to monitor all of its securities with a high degree of scrutiny. There can be no assurance that the Company will not conclude in future periods that conditions existing at that time indicate some or all of these securities may be sold or are other than temporarily impaired, which would require a charge to earnings in such periods. At December 31, 2019 and 2018, investment securities with a carrying value of $726.1 million and $888.8 million, respectively, were pledged to secure public funds deposits and for other purposes required and permitted by law. At December 31, 2019 and 2018, the carrying amount of the securities pledged to collateralize repurchase agreements was $242.2 million and $205.3 million, respectively. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | Note 4 - Loans and Allowance for Loan Losses The following is a summary of non-acquired loans: December 31, (Dollars in thousands) 2019 2018 Non-acquired loans: Commercial non-owner occupied real estate: Construction and land development $ 968,360 $ 841,445 Commercial non-owner occupied 1,811,138 1,415,551 Total commercial non-owner occupied real estate 2,779,498 2,256,996 Consumer real estate: Consumer owner occupied 2,118,839 1,936,265 Home equity loans 518,628 495,148 Total consumer real estate 2,637,467 2,431,413 Commercial owner occupied real estate 1,784,017 1,517,551 Commercial and industrial 1,280,859 1,054,952 Other income producing property 218,617 214,353 Consumer 538,481 448,664 Other loans 13,892 9,357 Total non-acquired loans 9,252,831 7,933,286 Less allowance for loan losses (56,927) (51,194) Non-acquired loans, net $ 9,195,904 $ 7,882,092 The above table includes deferred fees, net of deferred costs, totaling $751,000 and $697,000 at December 31, 2019 and 2018, respectively. The following is a summary of acquired non-credit impaired loans accounted for under FASB ASC Topic 310-20, net of the related discount: December 31, (Dollars in thousands) 2019 2018 Acquired non-credit impaired loans: Commercial non-owner occupied real estate: Construction and land development $ 33,569 $ 165,070 Commercial non-owner occupied 447,441 679,253 Total commercial non-owner occupied real estate 481,010 844,323 Consumer real estate: Consumer owner occupied 496,431 628,813 Home equity loans 188,732 242,425 Total consumer real estate 685,163 871,238 Commercial owner occupied real estate 307,193 421,841 Commercial and industrial 101,880 212,537 Other income producing property 95,697 133,110 Consumer 89,484 111,777 Other — — Acquired non-credit impaired loans $ 1,760,427 $ 2,594,826 In accordance with FASB ASC Topic 310-30, the Company aggregated acquired loans that have common risk characteristics into pools of loan categories as described in the table below. The following is a summary of acquired credit impaired loans accounted for under FASB ASC Topic 310-30 (identified as credit impaired at the time of acquisition), net of related discount: December 31, (Dollars in thousands) 2019 2018 Acquired credit impaired loans: Commercial real estate $ 130,938 $ 196,764 Commercial real estate—construction and development 25,032 32,942 Residential real estate 163,359 207,482 Consumer 35,488 42,492 Commercial and industrial 7,029 10,043 Acquired credit impaired loans 361,846 489,723 Less allowance for loan losses (5,064) (4,604) Acquired credit impaired loans, net $ 356,782 $ 485,119 The table below reflects refined contractual loan payments (principal and interest), estimates of the amounts not expected to be collected (non-accretable difference), accretable yield (interest income recognized over time), and the resulting fair values at the acquisition date for PSC (November 30, 2017) for loans accounted for using FASB ASC Topic 310-30. During the second quarter of 2018, the initial fair value of loans at acquisition were adjusted to reflect movement of loans between the ASC Topic 310-20 portfolio and the ASC Topic 310-30 portfolio and the movement in interest rates from the initial valuation. The table below reflects refined contractual loan payments (principal and interest), estimates of the amounts not expected to be collected (non-accretable difference), accretable yield (interest income recognized over time), and the resulting fair values at the acquisition date for PSC (November 30, 2017) for loans accounted for using FASB ASC Topic 310-30. During the second quarter of 2018, the initial fair value of loans at acquisition were adjusted to reflect movement of loans between the ASC Topic 310-20 portfolio and the ASC Topic 310-30 portfolio and the movement in interest rates from the initial valuation. November 30, 2017 Loans Impaired (Dollars in thousands) at Acquisition Contractual principal and interest $ 113,584 Non-accretable difference (27,248) Cash flows expected to be collected 86,336 Accretable difference (7,369) Carrying value $ 78,967 The table above excludes $2.1 billion ($2.2 billion in contractual principal less a $46.5 million fair value adjustment) in acquired loans at fair value that were identified as either performing with no discount related to the credit or as revolving lines of credit (commercial or consumer) as of the acquisition date of Park and will be accounted for under FASB ASC Topic 310-20. The table below reflects refined contractual loan payments (principal and interest), estimates of the amounts not expected to be collected (non-accretable difference), accretable yield (interest income recognized over time), and the resulting fair values at the acquisition date for SBFC (January 3, 2017) for loans accounted for using FASB ASC Topic 310-30. During the third quarter of 2017, the initial fair values of the acquired loan portfolios were adjusted to reflect movement of loans between the ASC Topic 310-20 portfolio and the ASC Topic 310-30 portfolio. January 3, 2017 Loans Impaired (Dollars in thousands) at Acquisition Contractual principal and interest $ 78,963 Non-accretable difference (13,072) Cash flows expected to be collected 65,891 Accretable difference (4,910) Carrying value $ 60,981 The table above excludes $986.5 million ($1.0 billion in contractual principal less a $18.8 million fair value adjustment) in acquired loans at fair value that were identified as either performing with no discount related to the credit or as revolving lines of credit (commercial or consumer) as of the acquisition date of Southeastern and will be accounted for under FASB ASC Topic 310-20. Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting carrying values of total acquired credit impaired loans as of December 31, 2019 and 2018 are as follows: December 31, December 31, (Dollars in thousands) 2019 2018 Contractual principal and interest $ 452,818 $ 626,691 Non-accretable difference (13,938) (24,818) Cash flows expected to be collected 438,880 601,873 Accretable yield (82,098) (116,754) Carrying value $ 356,782 $ 485,119 Income on acquired credit impaired loans that are not impaired at the acquisition date is recognized in the same manner as loans impaired at the acquisition date. A portion of the fair value discount on acquired non-impaired loans has been ascribed as an accretable yield that is accreted into interest income over the estimated remaining life of the loans. The remaining nonaccretable difference represents cash flows not expected to be collected. The following are changes in the carrying value of acquired credit impaired loans: Year Ended December 31, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 485,119 $ 618,803 Net reductions for payments, foreclosures, and accretion (127,877) (133,707) Change in the allowance for loan losses on acquired loans (460) 23 Balance at end of period, net of allowance for loan losses on acquired credit impaired loans $ 356,782 $ 485,119 The following are changes in the carrying amount of accretable yield for acquired credit impaired loans: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Balance at beginning of period $ 116,754 $ 133,096 $ 155,379 Addition from the PSC acquisition — — 4,910 Park Sterling Corporation ("Park Sterling") acquisition Day 1 adjustment — (1,460) 8,829 Contractual interest income (26,515) (33,115) (36,690) Accretion on acquired credit impaired loans (17,813) (19,004) (20,841) Reclass of nonaccretable difference due to improvement in expected cash flows 9,826 37,501 21,987 Other changes, net (154) (264) (478) Balance at end of period $ 82,098 $ 116,754 $ 133,096 The table above reflects the changes in the carrying amount of accretable yield for the acquired credit impaired loans and shows both the contractual interest income and incremental accretion for each year. In 2019, the accretable yield balance declined by $34.7 million as total contractual interest and accretion income of $44.3 million was recognized. This was partially offset by improved expected cash flows of $9.8 million. The improved cash flows for previous years were adjusted to accurately reflect the split between income types. As of December 31, 2019, the table above excludes $1.8 billion ($1.8 billion in contractual principal less a $20.3 million discount) in acquired loans which are accounted for under FASB ASC Topic 310-20. These loans were identified as either performing with no discount related to the credit or as a revolving lines of credit (commercial or consumer) at acquisition. As of December 31, 2018, the balance of these acquired loans totaled $2.6 billion ($2.6 billion in contractual principal less a $33.4 million remaining discount). Our loan loss policy adheres to U.S. GAAP as well as interagency guidance. The allowance for loan losses is based upon estimates made by management. We maintain an allowance for loan losses at a level that we believe is appropriate to cover estimated credit losses on individually evaluated loans that are determined to be impaired as well as estimated credit losses inherent in the remainder of our loan portfolio. Arriving at the allowance involves a high degree of management judgment and results in a range of estimated losses. We regularly evaluate the adequacy of the allowance through our internal risk rating system, outside credit review, and regulatory agency examinations to assess the quality of the loan portfolio and identify problem loans. The evaluation process also includes our analysis of current economic conditions, composition of the loan portfolio, past due and nonaccrual loans, concentrations of credit, lending policies and procedures, and historical loan loss experience. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on, among other factors, changes in economic conditions in our markets. In addition, regulatory agencies, as an integral part of their examination process, periodically review our allowances for losses on loans. These agencies may require management to recognize additions to the allowances based on their judgments about information available to them at the time of their examination. Because of these and other factors, it is possible that the allowances for losses on loans may change. The provision for loan losses is charged to expense in an amount necessary to maintain the allowance at an appropriate level. The allowance for loan losses on non-acquired loans consists of general and specific reserves. The general reserves are determined by applying loss percentages to the portfolio that are based on historical loss experience for each class of loans and management’s evaluation and “risk grading” of the loan portfolio. Additionally, the general economic and business conditions affecting key lending areas, credit quality trends, collateral values, loan volumes and concentrations, seasoning of the loan portfolio, the findings of internal and external credit reviews and results from external bank regulatory examinations are included in this evaluation. Currently, these adjustments are applied to the non-acquired loan portfolio when estimating the level of reserve required. The specific reserves are determined on a loan-by-loan basis based on management’s evaluation of our exposure for each credit, given the current payment status of the loan and the value of any underlying collateral. These are loans classified by management as doubtful or substandard. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. Generally, the need for specific reserve is evaluated on impaired loans, and once a specific reserve is established for a loan, a charge off of that amount occurs in the quarter subsequent to the establishment of the specific reserve. Loans that are determined to be impaired are provided a specific reserve, if necessary, and are excluded from the calculation of the general reserves. Beginning with the First Financial Holdings, Inc. acquisition, the Company segregated the loan portfolio into performing loans (“non-credit impaired) and purchased credit impaired loans. The performing loans and revolving type loans are accounted for under FASB ASC 310-20, with each loan being accounted for individually. The allowance for loan losses on these loans will be measured and recorded consistent with non-acquired loans. The acquired credit impaired loans will follow the description in the next paragraph. In determining the acquisition date fair value of purchased loans, and in subsequent accounting, the Company generally aggregates purchased loans into pools of loans with common risk characteristics. Expected cash flows at the acquisition date in excess of the fair value of loans are recorded as interest income over the life of the loans using a level yield method if the timing and amount of the future cash flows of the pool is reasonably estimable. Subsequent to the acquisition date, increases in cash flows over those expected at the acquisition date are reclassified from the non-accretable difference to accretable yield and recognized as interest income prospectively. Decreases in expected cash flows after the acquisition date are recognized by recording an allowance for loan losses. Management analyzes the acquired loan pools using various assessments of risk to determine an expected loss. The expected loss is derived based upon a loss given default based upon the collateral type and/or detailed review by loan officers and the probability of default that is determined based upon historical data at the loan level. All acquired loans managed by Special Asset Management are reviewed quarterly and assigned a loss given default. Acquired loans not managed by Special Asset Management are reviewed twice a year in a similar method to the Company’s originated portfolio of loans which follow review thresholds based on risk rating categories. In the fourth quarter of 2015, the Company modified its methodology to a more granular approach in determining loss given default on substandard loans with a net book balance between $100,000 and $500,000 by adjusting the loss given default to 90% of the most current collateral valuation based on appraised value. Substandard loans greater than $500,000 were individually assigned loss given defaults each quarter. Trends are reviewed in terms of accrual status, past due status, and weighted-average grade of the loans within each of the accounting pools. In addition, the relationship between the change in the unpaid principal balance and change in the mark is assessed to correlate the directional consistency of the expected loss for each pool. An aggregated analysis of the changes in allowance for loan losses is as follows: Non-acquired Acquired Acquired Credit (Dollars in thousands) Loans Impaired Loans Impaired Loans Total Year Ended December 31, 2019: Balance at beginning of period $ 51,194 $ — $ 4,604 $ 55,798 Loans charged-off (6,917) (2,858) — (9,775) Recoveries of loans previously charged off 3,367 547 — 3,914 Net charge-offs (3,550) (2,311) — (5,861) Provision for loan losses charged to operations 9,283 2,311 1,183 12,777 Reduction due to loan removals — — (723) (723) Balance at end of period $ 56,927 $ — $ 5,064 $ 61,991 Year Ended December 31, 2018: Balance at beginning of period $ 43,448 $ — $ 4,627 $ 48,075 Loans charged-off (6,012) (2,214) — (8,226) Recoveries of loans previously charged off 2,995 305 — 3,300 Net charge-offs (3,017) (1,909) — (4,926) Provision for loan losses charged to operations 10,763 1,909 1,111 13,783 Reduction due to loan removals — — (1,134) (1,134) Balance at end of period $ 51,194 $ — $ 4,604 $ 55,798 Year Ended December 31, 2017: Balance at beginning of period $ 36,960 $ — $ 3,395 $ 40,355 Loans charged-off (5,149) (1,630) — (6,779) Recoveries of loans previously charged off 2,953 477 — 3,430 Net charge-offs (2,196) (1,153) — (3,349) Provision for loan losses charged to operations 8,684 1,153 2,053 11,890 Reduction due to loan removals — — (821) (821) Balance at end of period $ 43,448 $ — $ 4,627 $ 48,075 The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for non-acquired loans: Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing Other (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Loans Total Year Ended December 31, 2019: Allowance for loan losses: Balance at beginning of period $ 5,682 $ 8,754 $ 9,369 $ 11,913 $ 3,434 $ 7,454 $ 1,446 $ 3,101 $ 41 $ 51,194 Charge-offs (78) (3) (87) (50) (203) (622) (31) (5,843) — (6,917) Recoveries 1,016 76 174 213 265 351 94 1,178 — 3,367 Provision (benefit) (516) 1,872 1,125 520 (308) 1,156 (173) 5,511 96 9,283 Balance at end of period $ 6,104 $ 10,699 $ 10,581 $ 12,596 $ 3,188 $ 8,339 $ 1,336 $ 3,947 $ 137 $ 56,927 Loans individually evaluated for impairment $ 617 $ — $ 24 $ 102 $ 132 $ 366 $ 50 $ 55 $ — $ 1,346 Loans collectively evaluated for impairment $ 5,487 $ 10,699 $ 10,557 $ 12,494 $ 3,056 $ 7,973 $ 1,286 $ 3,892 $ 137 $ 55,581 Loans: Loans individually evaluated for impairment $ 35,201 $ 379 $ 6,575 $ 5,141 $ 2,461 $ 6,578 $ 2,024 $ 173 $ — $ 58,532 Loans collectively evaluated for impairment 933,159 1,810,759 1,777,442 2,113,698 516,167 1,274,281 216,593 538,308 13,892 9,194,299 Total non-acquired loans $ 968,360 $ 1,811,138 $ 1,784,017 $ 2,118,839 $ 518,628 $ 1,280,859 $ 218,617 $ 538,481 $ 13,892 $ 9,252,831 Year Ended December 31, 2018: Allowance for loan losses: Balance at beginning of period $ 5,921 $ 6,525 $ 8,128 $ 9,668 $ 3,250 $ 5,488 $ 1,375 $ 2,788 $ 305 $ 43,448 Charge-offs (76) — (659) (80) (215) (500) (2) (4,480) — (6,012) Recoveries 1,340 11 145 132 279 256 21 811 — 2,995 Provision (benefit) (1,503) 2,218 1,755 2,193 120 2,210 52 3,982 (264) 10,763 Balance at end of period $ 5,682 $ 8,754 $ 9,369 $ 11,913 $ 3,434 $ 7,454 $ 1,446 $ 3,101 $ 41 $ 51,194 Loans individually evaluated for impairment $ 788 $ 70 $ 27 $ 41 $ 142 $ 416 $ 142 $ 2 $ — $ 1,628 Loans collectively evaluated for impairment $ 4,894 $ 8,684 $ 9,342 $ 11,872 $ 3,292 $ 7,038 $ 1,304 $ 3,099 $ 41 $ 49,566 Loans: Loans individually evaluated for impairment $ 37,913 $ 1,025 $ 4,142 $ 6,761 $ 2,826 $ 1,291 $ 2,872 $ 188 $ — $ 57,018 Loans collectively evaluated for impairment 803,532 1,414,526 1,513,409 1,929,504 492,322 1,053,661 211,481 448,476 9,357 7,876,268 Total non-acquired loans $ 841,445 $ 1,415,551 $ 1,517,551 $ 1,936,265 $ 495,148 $ 1,054,952 $ 214,353 $ 448,664 $ 9,357 $ 7,933,286 Year Ended December 31, 2017: Allowance for loan losses: Balance at beginning of period $ 4,091 $ 4,980 $ 8,022 $ 7,820 $ 3,211 $ 4,842 $ 1,542 $ 2,350 $ 102 $ 36,960 Charge-offs (546) — — (185) (330) (776) (51) (3,261) — (5,149) Recoveries 968 132 220 306 210 343 85 689 — 2,953 Provision (benefit) 1,408 1,413 (114) 1,727 159 1,079 (201) 3,010 203 8,684 Balance at end of period $ 5,921 $ 6,525 $ 8,128 $ 9,668 $ 3,250 $ 5,488 $ 1,375 $ 2,788 $ 305 $ 43,448 Loans individually evaluated for impairment $ 1,063 $ 125 $ 64 $ 37 $ 135 $ 15 $ 178 $ 7 $ — $ 1,624 Loans collectively evaluated for impairment $ 4,858 $ 6,400 $ 8,064 $ 9,631 $ 3,115 $ 5,473 $ 1,197 $ 2,781 $ 305 $ 41,824 Loans: Loans individually evaluated for impairment $ 43,230 $ 1,375 $ 5,642 $ 5,632 $ 3,011 $ 1,156 $ 3,138 $ 239 $ — $ 63,423 Loans collectively evaluated for impairment 787,645 1,007,518 1,257,134 1,524,628 434,631 814,031 190,709 378,746 33,690 6,428,732 Total non-acquired loans $ 830,875 $ 1,008,893 $ 1,262,776 $ 1,530,260 $ 437,642 $ 815,187 $ 193,847 $ 378,985 $ 33,690 $ 6,492,155 The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired non-credit impaired loans: Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Other Total Year Ended December 31, 2019 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (44) — (786) (6) (263) (1,289) (26) (444) — (2,858) Recoveries 3 — — 26 206 190 71 51 — 547 Provision (benefit) 41 — 786 (20) 57 1,099 (45) 393 — 2,311 Balance, December 31, 2019 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 33,569 447,441 307,193 496,431 188,732 101,880 95,697 89,484 — 1,760,427 Total acquired non-credit impaired loans $ 33,569 $ 447,441 $ 307,193 $ 496,431 $ 188,732 $ 101,880 $ 95,697 $ 89,484 $ — $ 1,760,427 Year Ended December 31, 2018 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (107) — (28) (70) (436) (1,108) — (465) — (2,214) Recoveries 8 — — 64 102 63 — 68 — 305 Provision (benefit) 99 — 28 6 334 1,045 — 397 — 1,909 Balance, December 31, 2018 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 165,070 679,253 421,841 628,813 242,425 212,537 133,110 111,777 — 2,594,826 Total acquired non-credit impaired loans $ 165,070 $ 679,253 $ 421,841 $ 628,813 $ 242,425 $ 212,537 $ 133,110 $ 111,777 $ — $ 2,594,826 Year Ended December 31, 2017 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (82) — — (150) (859) (71) — (468) — (1,630) Recoveries 4 — 2 41 393 6 8 23 — 477 Provision (benefit) 78 — (2) 109 466 65 (8) 445 — 1,153 Balance, December 31, 2017 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 403,357 817,166 521,818 710,611 320,591 398,696 196,669 137,710 1,289 3,507,907 Total acquired non-credit impaired loans $ 403,357 $ 817,166 $ 521,818 $ 710,611 $ 320,591 $ 398,696 $ 196,669 $ 137,710 $ 1,289 $ 3,507,907 The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired credit impaired loans: Commercial Real Estate- Commercial Construction and Residential Commercial (Dollars in thousands) Real Estate Development Real Estate Consumer and Industrial Total Year Ended December 31, 2019: Allowance for loan losses: Balance, December 31, 2018 $ 801 $ 717 $ 2,246 $ 761 $ 79 $ 4,604 Provision for loan losses 577 (148) 716 (222) 260 1,183 Reduction due to loan removals (1) — (407) — (315) (723) Balance, December 31, 2019 $ 1,377 $ 569 $ 2,555 $ 539 $ 24 $ 5,064 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 1,377 $ 569 $ 2,555 $ 539 $ 24 $ 5,064 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 130,938 25,032 163,359 35,488 7,029 361,846 Total acquired credit impaired loans $ 130,938 $ 25,032 $ 163,359 $ 35,488 $ 7,029 $ 361,846 Year Ended December 31, 2018: Allowance for loan losses: Balance, December 31, 2017 $ 288 $ 180 $ 3,553 $ 461 $ 145 $ 4,627 Provision for loan losses 532 657 (892) 303 511 1,111 Reduction due to loan removals (19) (120) (415) (3) (577) (1,134) Balance, December 31, 2018 $ 801 $ 717 $ 2,246 $ 761 $ 79 $ 4,604 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 801 $ 717 $ 2,246 $ 761 $ 79 $ 4,604 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 196,764 32,942 207,482 42,492 10,043 489,723 Total acquired credit impaired loans $ 196,764 $ 32,942 $ 207,482 $ 42,492 $ 10,043 $ 489,723 Year Ended December 31, 2017: Allowance for loan losses: Balance, December 31, 2016 $ 41 $ 139 $ 2,419 $ 558 $ 238 $ 3,395 Provision for loan losses 247 163 1,662 (83) 64 2,053 Reduction due to loan removals — (122) (528) (14) (157) (821) Balance, December 31, 2017 $ 288 $ 180 $ 3,553 $ 461 $ 145 $ 4,627 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 288 $ 180 $ 3,553 $ 461 $ 145 $ 4,627 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 234,595 49,649 260,787 51,453 26,946 623,430 Total acquired credit impaired loans $ 234,595 $ 49,649 $ 260,787 $ 51,453 $ 26,946 $ 623,430 * The carrying value of acquired credit impaired loans includes a non-accretable difference which is primarily associated with the assessment of credit quality of acquired loans. As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the level of classified loans, (ii) net charge-offs, (iii) non-performing loans (see details below) and (iv) the general economic conditions of the markets that we serve. The Company utilizes a risk grading matrix to assign a risk grade to each of its loans. A description of the general characteristics of the risk grades is as follows: ● Pass—These loans range from minimal credit risk to average however still acceptable credit risk. ● Special mention—A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date. ● Substandard—A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. ● Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. The following table presents the credit risk profile by risk grade of commercial non-acquired loans: Construction & Development Commercial Non-owner Occupied Commercial Owner Occupied December 31, December 31, December 31, December 31, December 31, December 31, (Dollars in thousands) 2019 2018 2019 2018 2019 2018 Pass $ 959,206 $ 832,612 $ 1,787,306 $ 1,407,744 |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2019 | |
Other Real Estate Owned | |
Other Real Estate Owned | Note 5—Other Real Estate Owned The following is a summary of the changes in the carrying value of OREO: (Dollars in thousands) OREO Balance, December 31, 2016 $ 18,316 Acquired in Southeastern Bank Financial Corp. acquisition 385 Acquired in Park Sterling Corp. acquisition 2,046 Additions, net 11,558 Writedowns (2,249) Sold (18,853) Balance, December 31, 2017 11,203 Acquired in Park Sterling Corp. acquisition 210 Additions, net 13,391 Writedowns (1,420) Sold (11,974) Balance, December 31, 2018 11,410 Additions, net 10,373 Writedowns (1,192) Sold (8,627) Balance, December 31, 2019 $ 11,964 At December 31, 2019, there were a total of 59 properties included in OREO which compares to 75 properties included in OREO, at December 31, 2018. At December 31, 2019, the Company had $1.8 million in residential real estate included in OREO and $5.6 million in residential real estate consumer mortgage loans in the process of foreclosure. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Premises and Equipment | |
Premises and Equipment | Note 6—Premises and Equipment Premises and equipment consisted of the following: December 31, (Dollars in thousands) Useful Life 2019 2018 Land $ 74,913 $ 77,338 Buildings and leasehold improvements 15 - 40 years 226,750 224,620 Equipment and furnishings 3 - 10 years 106,696 109,468 Lease right of use assets 87,389 — Construction in process 1,977 3,782 Total 497,725 415,208 Less accumulated depreciation (180,404) (174,132) $ 317,321 $ 241,076 Depreciation expense charged to operations was $18.2 million, $18.7 million, and $15.2 million for the years ended December 31, 2019, 2018, and 2017, respectively. At December 31, 2019 and 2018, computer software with an original cost of $13.7 million and $13.5 million, respectively, were being amortized using the straight-line method over thirty-six months. Amortization expense totaled $1.2 million, $2.1 million, and $2.5 million for the years ended December 31, 2019, 2018, and 2017, respectively. There were Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. Of this amount, was related to a front capture software product for administering customer banking transactions at branch locations. These costs are being held in a suspense account classified as other assets on the balance sheet until the project is complete when they will then begin to be depreciated. See Note 20 – Lease Commitments for further details on lease right of use asset. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 7—Goodwill and Other Intangible Assets In accordance with FASB ASC 350, Intangibles—Goodwill and Other Year Ended December 31, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 1,002,900 $ 999,586 Additions: PSC acquisition Day 1 adjustment — 3,314 Balance at end of period $ 1,002,900 $ 1,002,900 The Company’s other intangible assets, consisting of core deposit intangibles, noncompete intangibles, and client list intangibles are included on the face of the balance sheet. The following is a summary of gross carrying amounts and accumulated amortization of other intangible assets: December 31, (Dollars in thousands) 2019 2018 Gross carrying amount $ 119,501 $ 121,736 Accumulated amortization (69,685) (58,836) $ 49,816 $ 62,900 Amortization expense totaled $13.1 million, $14.2 million and $10.4 million for the years ended December 31, 2019, 2018, and 2017, respectively. Other intangibles are amortized using either the straight-line method or an accelerated basis over their estimated useful lives, with lives generally between 2 (Dollars in thousands) Year ended December 31: 2020 $ 11,867 2021 10,584 2022 9,266 2023 6,314 2024 3,940 Thereafter 7,845 $ 49,816 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits | |
Deposits | Note 8—Deposits The Company’s total deposits are comprised of the following: December 31, (Dollars in thousands) 2019 2018 Certificates of deposit $ 1,651,399 $ 1,775,095 Interest-bearing demand deposits 5,966,496 5,407,175 Non-interest bearing demand deposits 3,245,306 3,061,769 Savings deposits 1,309,896 1,399,815 Other time deposits 3,999 3,079 Total deposits $ 12,177,096 $ 11,646,933 At December 31, 2019 and 2018 the Company had $303.2 million and $320.0 million in certificates of deposits of $250,000 and greater, respectively. At December 31, 2019 the Company no longer held traditional, out-of-market brokered deposits, as compared with December 31, 2018, in which $7.6 million was held in traditional, out-of-market brokered deposits. At December 31, 2019, the scheduled maturities of time deposits (includes $4.0 million of other time deposits) of all denominations are as follows: (Dollars in thousands) Year ended December 31: 2020 $ 1,094,319 2021 374,534 2022 100,213 2023 71,145 2024 12,489 Thereafter 2,698 $ 1,655,398 |
Federal Funds Purchased and Sec
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 12 Months Ended |
Dec. 31, 2019 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | Note 9—Federal Funds Purchased and Securities Sold Under Agreements to Repurchase Federal funds purchased and securities sold under agreements to repurchase generally mature within one December 31, 2019 2018 2017 (Dollars in thousands) Amount Rate Amount Rate Amount Rate At period-end: Federal funds purchased and securities sold under repurchase agreements $ 298,741 0.90 % $ 270,649 1.08 % $ 286,857 0.45 % Average for the year: Federal funds purchased and securities sold under repurchase agreements $ 282,172 0.93 % $ 312,768 0.75 % $ 325,713 0.33 % Maximum month-end balance: Federal funds purchased and securities sold under repurchase agreements $ 321,833 $ 362,047 $ 401,786 Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase (“repurchase agreements”) represent funds received from customers, generally on an overnight or continuous basis, which are collateralized by investment securities owned or, at times, borrowed and re-hypothecated by the Company. Repurchase agreements are subject to terms and conditions of the master repurchase agreements between the Company and the client and are accounted for as secured borrowings. The Company monitors the fair value of the underlying securities on a daily basis. Some securities underlying these agreements include arrangements to resell securities from broker-dealers approved by the Company. Repurchase agreements are reflected at the amount of cash received in connection with the transaction and included in federal funds purchased and securities sold under agreements to repurchase on the consolidated balance sheets. At December 31, 2019 and December 31, 2018, the Company’s repurchase agreements totaled $242.2 million and $205.3 million, respectively. All of the Company’s repurchase agreements were overnight or continuous (until-further-notice) agreements at December 31, 2019 and December 31, 2018. These borrowings were collateralized with government, government-sponsored enterprise, or state and political subdivision-issued securities with a carrying value of |
Other Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Other Borrowings. | |
Other Borrowings | Note 10— Other Borrowings The Company’s other borrowings were as follows: 2019 2018 Weighted Weighted Interest Average Interest Average Rate at Interest Rate at Interest (Dollars in thousands) Maturity 12/31/2019 Balance Rate 12/31/2018 Balance Rate Short-term borrowings: Federal Home Loan Bank Fixed Rate Credit 12/31/2019 — % $ — 2.64 % $ 150,000 Federal Home Loan Bank Fixed Rate Credit 3/4/2020 1.75 % 200,000 — % — Federal Home Loan Bank Fixed Rate Credit 3/19/2020 1.73 % 350,000 — % — Federal Home Loan Bank Fixed Rate Credit 3/30/2020 1.72 % 150,000 — % — Total short-term borrowings 700,000 2.35 % 150,000 2.64 % Long-term borrowings SCBT Capital Trust I junior subordinated debt (1) 6/15/2035 3.68 % 12,372 4.58 % 12,372 SCBT Capital Trust II junior subordinated debt (1) 6/15/2035 3.68 % 8,248 4.58 % 8,248 SCBT Capital Trust III junior subordinated debt (1) 7/18/2035 3.48 % 20,619 4.38 % 20,619 SAVB Capital Trust I junior subordinated debt (1) 10/7/2033 4.84 % 6,186 5.29 % 6,186 SAVB Capital Trust II junior subordinated debt (1) 12/15/2034 4.09 % 4,124 4.99 % 4,124 TSB Statutory Trust I junior subordinated debt (1) 3/14/2037 3.61 % 3,093 4.51 % 3,093 Southeastern Bank Financial Statutory Trust I junior subordinated debt (1) 12/15/2035 3.29 % 10,310 4.19 % 10,310 Southeastern Bank Financial Statutory Trust II junior subordinated debt (1) 6/15/2036 3.29 % 10,310 4.19 % 10,310 CSBC Statutory Trust I junior subordinated debt (1) 12/15/2035 3.46 % 15,464 4.36 % 15,464 Community Capital Statutory Trust I junior subordinated debt (1) 6/15/2036 3.44 % 10,310 4.34 % 10,310 FCRV Statutory Trust I junior subordinated debt (1) 12/15/2036 3.59 % 5,155 4.49 % 5,155 Provident Community Bancshares Capital Trust I junior subordinated debt (1) 3/1/2037 3.84 % 4,124 4.14 % 4,124 Provident Community Bancshares Capital Trust II junior subordinated debt (1) 10/1/2036 3.65 % 8,248 4.48 % 8,248 Fair Market Value Discount Trust Preferred Debt Acquired (2,730) (3,397) Other Various 0.50 % 103 4.14 % 918 Total long-term borrowings 115,936 3.60 % 116,084 4.45 % Total borrowings $ 815,936 $ 266,084 (1) All of the junior subordinated debt above is adjustable rate based on three-month LIBOR plus a spread ranging from 140 basis points to 285 basis points. Short-Term FHLB Advances The Company has from time-to- time entered into borrowing agreements with the FHLB. Advances under these agreements are collateralized by stock in the FHLB, qualifying first and second mortgage residential loans, and commercial real estate loans under a blanket-floating lien. As of December 31, 2019, and 2018, there was $700.0 million and $150.0 million in outstanding Short-Term FHLB advances, respectively. For the years ended December 31, 2019 and 2018, the average balance for Short-Term FHLB advances was $538.6 million and $42.3 million, respectively. The weighted average cost of the Short-Term FHLB advances at period end December 31, 2019 was 1.73% and the weighted average cost year to date for the year ended December 31, 2019 was 2.35 %. The weighted average cost of the FHLB advances at period end December 31, 2018 was 2.64% and the weighted average cost year to date for the year ended December 31, 2018 was 1.57 %. The weighted average cost of the FHLB advances at period end December 31, 2017 was 1.48% and the weighted average cost year to date for the year ended December 31, 2017 was 0.97 %. Net eligible loans of the Company pledged via a blanket lien to the FHLB for advances and letters of credit at December 31, 2019, were approximately During the first quarter of 2019, we paid-off early the FHLB advance of $150.0 million that was outstanding at December 31, 2018 that would have matured in December 2019. We then borrowed 90-day fixed rate FHLB advances for which at this time we plan to continuously renew. 90-day FHLB advances. We borrowed these FHLB advances to provide liquidity for operations, loan growth and investment growth. Junior Subordinated Debt The obligations of the Company with respect to the issuance of the capital securities constitute a full and unconditional guarantee by the Company of the trusts’ obligations with respect to the capital securities. Subject to certain exceptions and limitations, the Company may elect from time to time to defer interest payments on the junior subordinated debt securities, which would result in a deferral of distribution payments on the related capital securities. All of the Company’s junior subordinated debt is callable after five years from issuance. Therefore, all of the junior subordinated debt is callable at December 31, 2019. As of December 31, 2019, the sole assets of the trusts were an aggregate of $115.8 million of the Company’s junior subordinated debt securities with like maturities and like interest rates to the trust preferred securities. As of December 31, 2019, the Company recorded a $115.8 million liability for the junior subordinated debt securities, net of a $2.7 million discount recorded on Southeastern Bank Financial Statutory Trust I and II, Citizens South Banking Corporation Statutory Trust I, Community Capital Statutory Trust I, FCRV Statutory Trust I, Provident Community Bancshares Capital Trust I and II. The Company, as issuer, can call any of these subordinated debt securities without penalty. If the Company were to call the securities, the amount paid to the holders would be $118.6 million and the Company would fully amortize any remaining discount into interest expense. The remaining discount is being amortized over either a two and one-half year period or five year period. As of December 31, 2019, and 2018, there was $115.8 million (net of discount of $2.7 million) and $115.2 million (net of discount of $3.4 million), respectively, in junior subordinated debt. The weighted average cost of the junior subordinated debt at period end December 31, 2019 was 3.60% and the weighted average cost year to date for the year ended December 31, 2019 of 4.20 %. This does not take into account the discount. If the discount were taken into account the weighted average cost year to date would be 4.88 %. This compares to a weighted average cost of the junior subordinated debt at period end December 31, 2018 of 4.45% and the weighted average cost year to date for the year ended December 31, 2018 of 3.90 %. If the discount were taken into account the weighted average cost year to date would be 4.61% in 2018. For regulatory purposes, the junior subordinated debt securities may be classified as Tier 1 Capital. Pursuant to the Basel III rules adopted by the bank regulatory agencies in July 2013, financial institutions with less than $15 billion in total assets may continue to include their trust preferred securities issued prior to May 19, 2010 in Tier 1 capital, but cannot include in Tier 1 capital any trust preferred securities issued after such date. A financial institution may continue to include its trust preferred securities in Tier 1 capital if it exceeds $15 billion in total assets through organic growth, but if it exceeds $15 billion in total assets through an acquisition or enters into an acquisition after exceeding $15 billion in total assets through organic growth, then the trust preferred securities would no longer be included in Tier 1 capital. Therefore, upon closing on the proposed merger with CenterState in 2020, our trust preferred securities of $115.8 million would no longer be included in Tier 1 capital. The trust preferred securities represent a minority investment in an unconsolidated subsidiary, which is currently included in Tier 1 Capital so long as it does not exceed 25% of total Tier 1 Capital. Line of Credit On November 15, 2019, the Company entered into an amendment to its Credit Agreement (the “Agreement”) with U.S. Bank National Association (the “Lender”). The Agreement provides for a $25 million unsecured line of credit by the Lender to the Company. The maturity date of the Agreement is November 15, 2020, provided that the Agreement may be extended subject to the approval of the Lender. Borrowings by the Company under the Agreement will bear interest at a rate per annum equal to one-month LIBOR plus 1.35% . As of December 31, 2019 and 2018, and there was Principal maturities of other borrowings are summarized below: Junior Subordinated FHLB (Dollars in thousands) Debt Advances Other Total Year Ended December 31, 2020 $ — $ 700,000 $ 7 $ 700,007 2021 — — 8 8 2022 — — 8 8 2023 — — 8 8 2024 — — 8 8 Thereafter 115,833 — 64 115,897 $ 115,833 $ 700,000 $ 103 $ 815,936 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | Note 11—Income Taxes The provision for income taxes consists of the following: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Current: Federal $ 40,375 $ 25,275 $ 46,153 State 4,965 6,783 3,018 Total current tax expense 45,340 32,058 49,171 Deferred: Federal (1,598) 12,557 31,971 State 200 769 109 Total deferred tax expense (1,398) 13,326 32,080 Provision for income taxes $ 43,942 $ 45,384 $ 81,251 The provision for income taxes differs from that computed by applying the federal statutory income tax rate of 21% in 2018 and 2019 and 35% in prior years, to income before provision for income taxes, as indicated in the following analysis: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Income taxes at federal statutory rate $ 48,389 $ 47,094 $ 59,082 Increase (reduction) of taxes resulting from: State income taxes, net of federal tax benefit 4,080 5,916 2,032 Non-deductible merger expenses — — 586 Increase in cash surrender value of BOLI policies (1,210) (1,261) (1,319) Tax-exempt interest (1,877) (2,037) (2,840) Income tax credits (6,881) (3,118) (1,951) Dividends received deduction (2) (5) (12) Non-deductible FDIC premiums 133 191 — Revaluation of net deferred tax asset due to tax law change — (991) 26,558 Other, net 1,310 (405) (885) $ 43,942 $ 45,384 $ 81,251 On December 22, 2017, the President signed into law the Tax Reform Act which, among other things, lowered the maximum corporate tax rate from 35% to 21 % beginning in 2018. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred tax assets and liabilities are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. As a result of the Tax Reform Act, the Company revalued its deferred tax assets and liabilities through the provision for income taxes. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. The Company recognized a provisional tax impact of $26.6 million as additional income tax expense related to the revaluation of deferred tax assets and liabilities and included that amount in its consolidated financial statements for the year ended December 31, 2017. In addition to that, during 2018, the Company finalized its calculation for the revaluation of deferred tax assets and liabilities and recorded that impact in its consolidated financial statements for the year ended December 31, 2018. The components of the net deferred tax asset are as follows: December 31, (Dollars in thousands) 2019 2018 Allowance for loan losses $ 14,468 $ 12,953 Other-than-temporary impairment on securities 250 257 Share-based compensation 4,975 4,475 Pension plan and post-retirement benefits 494 192 Deferred compensation 12,475 11,841 Purchase accounting adjustments 24,530 28,659 Other real estate owned 380 455 Net operating loss and tax credit carryforwards 10,347 11,572 Lease liability 19,146 — Cash flow hedge 3,034 11 Unrealized losses on investment securities available for sale — 7,273 Other 1,040 1,665 Total deferred tax assets 91,139 79,353 Unrealized gains on investment securities available for sale 2,373 — Depreciation 6,585 7,314 Intangible assets 9,979 12,617 Net deferred loan costs 9,082 9,409 Right of use assets 19,465 — Prepaid expense 474 474 Tax deductible goodwill 810 388 Mortgage servicing rights 6,688 7,608 Other 480 840 Total deferred tax liabilities 55,936 38,650 Net deferred tax assets before valuation allowance 35,203 40,703 Less, valuation allowance (3,887) (3,575) Net deferred tax assets $ 31,316 $ 37,128 The Company had federal net operating loss (“NOL”) carryforwards of $18.7 million and $24.3 million for the years ended December 31, 2019 and 2018, respectively, which expire in varying amounts through 2032. As a result of the Peoples, Savannah and Park Sterling ownership changes in 2012 and 2017, Section 382 of the Internal Revenue Code places an annual limitation of the amount of federal net operating loss carryforwards which the Company may utilize. Additionally, section 382 limits the Company’s ability to utilize certain tax deductions (realized built-in losses or “RBIL”) due to the existence of a Net Unrealized Built-in Loss (“NUBIL”) at the time of the change in control. The Company is allowed to carry forward any such RBIL under terms similar to those related to NOLs. Consequently, $4.6 million of the Company’s NOL carryforwards attributed to the Peoples acquisition are subject to annual limitations of $1.5 million, and $13.0 million of the Company’s NOL carryforwards attributed to the Savannah acquisition are subject to annual limitation of $2.0 million, and $1.1 million of the Company’s NOL carryforwards attributed to the Park Sterling acquisition are subject to annual limitations of $218 thousand. Additionally, the Company’s RBIL carryforwards attributed to the Park Sterling acquisition totaling $12.8 million are subject to annual limitations of $1.1 million. The Company expects all section 382 limited carryforwards to be realized within the applicable carryforward period. The Company had state net operating loss carryforwards of $108.6 million and $101.4 million for the years ended December 31, 2019 and 2018, respectively, which expire in varying amounts through 2037. There is a valuation allowance of $3.9 million that relates to the parent company’s state operating loss carryforwards for which realizability is uncertain. The change in the valuation allowance for the years ended December 31, 2019, 2018, and 2017 was immaterial. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deferred tax assets, net of the valuation allowance at December 31, 2019. As of December 31, 2019 Generally, the Company’s federal and state income tax returns are no longer subject to examination by taxing authorities for years prior to 2016. |
Other Expense
Other Expense | 12 Months Ended |
Dec. 31, 2019 | |
Other Expense | |
Other Expense | Note 12— Other Expense The following is a summary of the components of other noninterest expense: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Business development and staff related $ 8,837 $ 9,536 $ 7,449 Bankcard expense 2,331 1,783 2,180 Other loan expense 2,087 2,028 2,590 Director and shareholder expense 1,859 2,065 1,635 Armored carrier and courier expense 1,874 2,102 1,703 Property and sales tax 2,131 1,760 1,033 Low income housing tax credit partnership amortization 6,141 3,829 3,038 Other 6,233 6,272 6,272 $ 31,493 $ 29,375 $ 25,900 |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Common Share | |
Earnings Per Common Share | Note 13—Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per common share: Year Ended December 31, (Dollars and shares in thousands, except for per share amounts) 2019 2018 2017 Basic earnings per common share: Net income $ 186,483 $ 178,871 $ 87,554 Weighted-average basic common shares 34,561 36,530 29,686 Basic earnings per common share $ 5.40 $ 4.90 $ 2.95 Diluted earnings per share: Net income $ 186,483 $ 178,871 $ 87,554 Weighted-average basic common shares 34,561 36,530 29,686 Effect of dilutive securities 236 246 236 Weighted-average dilutive shares 34,797 36,776 29,922 Diluted earnings per common share $ 5.36 $ 4.86 $ 2.93 The calculation of diluted earnings per common share excludes outstanding stock options for which the results would have been antidilutive under the treasury stock method as follows: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Number of shares 62,235 62,235 34,712 Range of exercise prices $ 87.30 to $ 91.35 $ 87.30 to $ 91.35 $ 69.48 to $ 91.35 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | Note 14—Accumulated Other Comprehensive Income (Loss) The changes in each component of accumulated other comprehensive income (loss), net of tax, were as follows: Unrealized Gains and Losses Gains and on Securities Losses on Benefit Available Cash Flow (Dollars in thousands) Plans for Sale Hedges Total Balance at December 31, 2016 $ (6,195) $ (1,708) $ (308) $ (8,211) Other comprehensive loss before reclassifications (365) (2,157) (13) (2,535) Amounts reclassified from accumulated other comprehensive income (loss) 562 (413) 170 319 Net comprehensive income (loss) 197 (2,570) 157 (2,216) Balance at December 31, 2017 (5,998) (4,278) (151) (10,427) Other comprehensive loss before reclassifications 382 (13,479) 33 (13,064) Amounts reclassified from accumulated other comprehensive income (loss) 926 510 121 1,557 Net comprehensive income (loss) 1,308 (12,969) 154 (11,507) AOCI reclassification to retained earnings from the adoption of ASU 2018-02 (1,760) (1,147) (40) (2,947) Balance at December 31, 2018 (6,450) (18,394) (37) (24,881) Other comprehensive income (loss) before reclassifications 20 28,245 (10,447) 17,818 Amounts reclassified from accumulated other comprehensive income 6,281 2,071 (272) 8,080 Net comprehensive income (loss) 6,301 30,316 (10,719) 25,898 Balance at December 31, 2019 $ (149) $ 11,922 $ (10,756) $ 1,017 The table below presents the reclassifications out of accumulated other comprehensive income, net of tax: Amount Reclassified from Accumulated (Dollars in thousands) For the Years Ended December 31, Accumulated Other Comprehensive Income (Loss) Component 2019 2018 2017 Income Statement Gains (losses) on cash flow hedges: Interest rate contracts $ (349) $ 155 $ 275 Interest expense 77 (34) (105) Provision for income taxes (272) 121 170 Net income (Gains) losses on sales of available for sale securities: $ 2,655 $ 655 $ (1,421) Securities gains (losses), net (584) (145) 542 Provision for income taxes 2,071 510 (879) Net income Other-than-temporary impairment losses on available for sale securities: $ — $ — $ 753 Other-than-temporary impairment losses — — (287) Provision for income taxes — — 466 Net income Losses and amortization of defined benefit pension: Actuarial losses $ 8,053 $ 1,187 $ 908 Salaries and employee benefits /Pension Plan Termination Expense (1,772) (261) (346) Provision for income taxes 6,281 926 562 Net income Total reclassifications for the period $ 8,080 $ 1,557 $ 319 |
Restrictions on Subsidiary Divi
Restrictions on Subsidiary Dividends, Loans, or Advances | 12 Months Ended |
Dec. 31, 2019 | |
Restrictions on Subsidiary Dividends, Loans, or Advances | |
Restrictions on Subsidiary Dividends, Loans, or Advances. | Note 15—Restrictions on Subsidiary Dividends, Loans, or Advances The Company pays cash dividends to shareholders from its assets, which are mainly provided by dividends from its banking subsidiary. However, certain restrictions exist regarding the ability of its subsidiary to transfer funds to the Company in form of cash dividends, loans or advances. The approval of the South Carolina Board of Financial Institutions (“SCBFI”) is required to pay dividends that exceeds 100% of net income in any calendar year. The Federal Reserve Board, the OCC, and the FDIC have issued policy statements which provide that bank holding companies and insured banks should generally pay dividends only out of current earnings. During 2019, the Bank paid special dividends to the Company totaling $157.0 million for which SCBFI approval was required. The Bank received approval from the SCBFI in June 2019 to pay an additional $60.0 million above current year net income in dividends to the Company. These funds were used to repurchase Company stock on the open market totaling $156.9 million during 2019. In 2018, the Bank paid special dividends to the Company totaling $66.6 million for which SCBFI approval was not required. These funds were used to repurchase Company stock on the open market totaling $68.4 million in the third and fourth quarters of 2018. In November 2017, the Bank paid a special dividend to the Company of $25.0 million for which SCBFI approval was not required. These funds were used to redeem $30.0 million in senior debt that was acquired in the Park Sterling merger. Under Federal Reserve regulations, the bank is also limited as to the amount it may lend to the Company. The maximum amount available for transfer from the bank to the Company in the form of loans or advances was approximately $246.4 million and $245.8 million at December 31, 2019 and 2018, respectively. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Plans | |
Retirement Plans | Note 16—Retirement Plans The Company and its subsidiary had a non-contributory defined benefit pension plan covering all employees hired on or before December 31, 2005, who have attained age 21 of eligible service. The Company’s funding policy on the pension plan was based principally, among other considerations, on contributing an amount necessary to satisfy the Internal Revenue Service’s funding standards. Effective July 1, 2009, the Company suspended the accrual of benefits for pension plan participants under the non-contributory defined benefit plan. The plan was terminated in the second quarter of 2019. During 2018, we made the decision to terminate the non-contributory defined benefit pension plan. We received approval from the IRS through a determination letter in the fourth quarter of 2018 to proceed with the termination. The termination of the pension plan was recorded during the second quarter of 2019 and distributions of assets from the plan were fully paid out by the fourth quarter of 2019. During the second quarter of 2019, the Company recorded a charge of $9.5 million related to the termination of the pension plan in the consolidated statement of income. This cost was the result of the recognition of the pre-tax losses from the pension plan that were recorded and held in accumulated other comprehensive income of $7.7 million and the write-off of the pension plan asset of $1.8 million. Participants had the option to be fully paid out in a lump sum or be paid through an annuity over time. If the participant chose the annuity, the funds were placed in an annuity product with a third party. The following sets forth the pension plan’s funded status and amounts recognized in the Company’s accompanying consolidated financial statements: December 31, (Dollars in thousands) 2019 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 28,906 $ 31,500 $ 28,800 Service cost 121 77 127 Interest cost 1,158 1,080 1,124 Actuarial (gain) loss 2,471 (2,442) 2,665 Benefits paid (538) (1,188) (1,138) Expenses (318) (121) (78) Plan termination settlements (31,800) — — Benefit obligation at end of year — 28,906 31,500 Change in plan assets: Fair value of plan assets at beginning of year 30,545 31,387 28,216 Actual return on plan assets 2,111 467 4,387 Benefits paid (538) (1,188) (1,138) Expenses (318) (121) (78) Plan termination settlements (31,800) — — Fair value of plan assets at end of year — 30,545 31,387 Funded (unfunded) status $ — $ 1,639 $ (113) At December 31, 2019 and 2018, the net losses recognized in accumulated other comprehensive income excluding related income tax effects were $0 and $7.9 million, respectively. The components of net periodic pension cost and other amounts recognized in other comprehensive income are as follows: December 31, (Dollars in thousands) 2019 2018 2017 Interest cost $ 1,157 $ 1,079 $ 1,124 Service cost 121 78 127 Expected return on plan assets (2,361) (2,328) (2,213) Recognized net actuarial loss 483 775 751 Net periodic pension benefit (600) (396) (211) Plan termination settlement 10,126 — — Net periodic pension cost with settlement 9,526 (396) — Net (gain) loss 2,722 (581) 491 Amortization of net gain (483) (775) (751) Plan termination settlement adjustment (10,126) — — Total amount recognized in other comprehensive income (7,887) (1,356) (260) Total recognized in net periodic benefit cost and other comprehensive income $ 1,639 $ (1,752) $ (471) The following is information as of the measurement date: December 31, (Dollars in thousands) 2019 2018 Projected benefit obligation $ — $ 28,906 Accumulated benefit obligation — 28,906 Fair value of plan assets — 30,545 The Company used a 4.10% discount rate in its weighted-average assumptions used to determine the benefit obligation at December 31, 2018. There was no benefit obligation at December 31, 2019. The rate of compensation increase was not applicable in the Company’s weighted-average assumptions because of the plan curtailment at June 30, 2009. The weighted-average assumptions used to determine net periodic pension cost are as follows: Year ended December 31, 2019 2018 2017 Discount rate 4.10 % 3.50 % 4.00 % Expected long-term return on plan assets 7.75 % 7.75 % 7.75 % For the years ended December 31, 2019, 2018, and 2017, the discount rate of 4.10%, 3.50%, and 4.00%, respectively, was determined by matching the projected benefit obligation cash flows of the plan to an independently derived yield curve, to arrive at the single equivalent rate. The policy, as established by the Investment Committee of the Defined Benefit Pension Plan, sought to maximize return within reasonable and prudent levels of risk. The overall long-term objective of the Plan was to achieve a rate of return that exceeds the actuarially assumed rate of return. The investment policy was reviewed on a regular basis and revised when appropriate based on the legal or regulatory environment, market trends, or other fundamental factors. In determining the long-term rate of return for the pension plan, the Company considered historical rates of return and the nature of the plan’s investments. Prior to making the decision to terminate the Plan, the Plan assets were divided among various investment classes with allowable allocation percentages as follows: Equities 55 - 65%, Fixed Income 20 - 40%, Cash Equivalents 0 - 35%. During 2019 before the termination of the pension plan, approximately 98% of pension plan assets were invested with Fixed Income Assets, and approximately 2 % of pension plan assets were held in cash equivalents. When the decision was made to terminate the plan, the Investment Committee and the Company made the decision to move the Plan assets into less risky investments of Cash Equivalents and Fixed Income Assets and out of Equities. At December 31, 2018 and 2017, the Plan did not include any of the Company’s common stock. The plan made no purchases of the Company’s stock during 2019, 2018 and 2017. The difference between actual and expected returns on plan assets was accumulated and amortized over future periods and, therefore, affects the recognized expenses in such future periods. Expenses incurred and charged against operations with regard to all of the Company’s retirement plans were as follows: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Pension $ — $ (309) $ (351) Pension plan termination expense 9,526 — — Employee savings plan/ 401(k) 6,659 7,948 7,381 Supplemental executive retirement plan 2,343 368 1,334 Post-retirement benefits 144 254 251 $ 18,672 $ 8,261 $ 8,615 The Company and its subsidiaries have a Safe Harbor plan. Under the plan, electing employees are eligible to participate after attaining age 18. Plan participants elect to contribute portions of their annual base compensation in any combination of pre-tax deferrals or Roth post-tax deferrals subject to the annual IRS limit. Employer contributions may be made from current or accumulated net profits. Participants may elect to contribute 1% to 50% of annual base compensation as a before tax contribution. Employees participating in the plan receive a 100% matching of their 401(k) plan contribution, up to 4 % of salary. Effective January 1, 2018, employees are eligible for an additional 2% the first quarter of the following year. Based on our financial performance in 2018, we paid a Employees hired on January 1, 2006 or thereafter will not participate in the defined benefit pension plan, but are eligible to participate in the employees’ savings plan. Employees can enter the savings plan on or after the first day of each month. The employee may enter into a salary deferral agreement at any time to select an alternative deferral amount or to elect not to defer in the Plan. If the employee does not elect an investment allocation, the plan administrator will select a retirement-based portfolio according to the employee’s number of years until normal retirement age. The plan’s investment valuations are generally provided on a daily basis. |
Post-Retirement Benefits
Post-Retirement Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Post-Retirement Benefits | |
Post-Retirement Benefits | Note 17—Post-Retirement Benefits At December 31, 2019, the Company and its subsidiary have two post-retirement health and life insurance benefit plans, South State Bank Retiree Medical Plan (the “retiree medical plan”) and the First Federal Retiree Welfare Plan (the “retiree welfare plan”). Retiree Medical Plan Under the retiree medical plan, post-retirement health and life insurance benefits are provided to eligible employees, such benefits being limited to those employees of the Company eligible for early retirement under the pension plan on or before December 31, 1993, and former employees who are currently receiving benefits. The plan was unfunded at December 31, 2019, and the liability for future benefits has been recorded in the consolidated financial statements. The following sets forth the retiree medical plan’s funded status and amounts recognized in the Company’s accompanying consolidated financial statements: December 31, (Dollars in thousands) 2019 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 309 $ 337 $ 393 Interest cost 11 11 13 Actuarial loss (33) 2 (29) Benefits paid (33) (41) (40) Benefit obligation at end of year 254 309 337 Change in plan assets: Fair value of plan assets at beginning of year — — — Employer contribution 33 41 40 Benefits paid (33) (41) (40) Fair value of plan assets at end of year — — — Funded status $ (254) $ (309) $ (337) Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost are as follows: Year Ended December 31, 2019 2018 2017 Weighted-average assumptions used to determine benefit obligation at December 31: Discount rate 2.70 % 3.80 % 3.20 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.80 % 3.20 % 3.50 % Assumed health care cost trend rates at December 31: Health care cost trend rate assumed for next year 5.00 % 5.00 % 5.00 % Components of net periodic benefit cost and other amounts recognized in other comprehensive income are as follows: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Interest cost $ 11 $ 10 $ 13 Recognized net actuarial loss 6 6 10 Net periodic benefit cost 17 16 23 Net (gain) loss (33) 2 (29) Amortization of gain (6) (6) (10) Total amount recognized in other comprehensive income (39) (4) (39) Total recognized in net periodic benefit cost and other comprehensive income $ (22) $ 12 $ (16) The estimated net loss for the retiree medical plan that will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year is $2,000. Assumed health care cost trend rates have a significant effect on the amounts reported for the post-retirement benefit plan. A one-percentage point change in assumed health care cost trend rates would have the following effects at the end of 2019: One-Percentage Point (Dollars in thousands) Increase Decrease Effect on total of interest cost $ 1 $ (1) Effect on postretirement benefit obligation 13 (12) Estimated future benefit payments (including expected future service as appropriate): (Dollars in thousands) 2020 $ 31 2021 30 2022 28 2023 27 2024 25 2025-2029 95 $ 236 The Company expects to contribute approximately $31,000 to the retiree medical plan in 2020. Retiree Welfare Plan Under the retiree welfare plan, post-retirement health and life insurance benefits are provided to eligible employees, such benefits being limited to retired First Financial Holdings, Inc. employees who are currently receiving benefits. The plan was unfunded at December 31, 2019, and the liability for future benefits has been recorded in the consolidated financial statements. The following sets forth the retiree welfare plan’s funded status and amounts recognized in the Company’s accompanying consolidated financial statements: December 31, (Dollars in thousands) 2019 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 2,281 $ 2,392 $ 2,447 Interest cost 82 73 81 Actuarial loss 7 89 126 Benefits paid (273) (286) (274) Less: Federal subsidy on benefits paid 12 13 12 Benefit obligation at end of year 2,109 2,281 2,392 Change in plan assets: Fair value of plan assets at beginning of year — — — Employer contribution 261 286 274 Participants’ contributions 12 — — Benefits paid (273) (286) (274) Fair value of plan assets at end of year — — — Funded status $ (2,109) $ (2,281) $ (2,392) Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost are as follows: Year Ended December 31, 2019 2018 2017 Weighted-average assumptions used to determine benefit obligation at December 31: Discount rate 2.70 % 3.80 % 3.20 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.80 % 3.20 % 3.50 % Assumed health care cost trend rates at December 31: Health care cost trend rate assumed for next year 5.00 % 5.00 % 5.00 % Components of net periodic benefit cost and other amounts recognized in other comprehensive income are as follows: Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Interest cost $ 82 $ 73 $ 81 Recognized net actuarial loss 160 154 147 Net periodic benefit cost 242 227 228 Net loss 7 89 126 Amortization of loss (160) (154) (147) Total amount recognized in other comprehensive income (153) (65) (21) Total recognized in net periodic benefit cost and other comprehensive income $ 89 $ 162 $ 207 The estimated net loss for the retiree welfare plan that will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year is $151,000. Assumed health care cost trend rates have a significant effect on the amounts reported for the post-retirement benefit plan. A one-percentage point change in assumed health care cost trend rates would have the following effects at the end of 2019: One-Percentage Point (Dollars in thousands) Increase Decrease Effect on aggregate service and interest cost $ 5 $ (5) Effect on postretirement benefit obligation 130 (118) Estimated future benefit payments (including expected future service as appropriate): (Dollars in thousands) 2020 $ 240 2021 230 2022 218 2023 206 2024 193 2025-2029 752 $ 1,839 The Company expects to contribute approximately $240,000 to the retiree welfare plan in 2020. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Compensation | |
Share-Based Compensation | Note 18—Share-Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees. Compensation cost is measured as the fair value of these awards on their date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used as the fair value of restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period for stock option awards and as the restriction period for restricted stock awards. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company’s 2004, 2012 and 2019 stock incentive programs are long-term retention programs intended to attract, retain, and provide incentives for key employees and non-employee directors in the form of incentive and non-qualified stock options and restricted stock. Stock Options With the exception of non-qualified stock options granted to directors under the 2004 and 2012 plans, which in some cases may be exercised at any time prior to expiration and in some other cases may be exercised at intervals less than a year following the grant date, incentive stock options granted under our 2004, 2012 and 2019 plans may not be exercised in whole or in part within a year following the date of the grant, as these incentive stock options become exercisable in 25% increments pro ratably over the four-year period following the grant date. The options are granted at an exercise price at least equal to the fair value of the common stock at the date of grant and expire ten years from the date of grant. No options were granted under the 2004 plan after January 26, 2012, and the 2004 plan is closed other than for any options still unexercised and outstanding. No options were granted under the 2012 plan after February 1, 2019, and the 2012 plan is closed other than for any options still unexercised and outstanding. The 2019 plan is the only plan from which new share-based compensation grants may be issued. It is the Company’s policy to grant options out of the 1,000,000 shares registered under the 2019 plan. Activity in the Company’s stock option plans is summarized in the following table. All information has been retroactively adjusted for stock dividends and stock splits. Year Ended December 31, 2019 2018 2017 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at January 1, 2019 213,866 $ 61.28 218,689 $ 52.75 246,535 $ 42.53 Granted — — 34,407 91.05 33,634 91.23 Exercised (36,978) 33.26 (33,424) 30.88 (59,480) 33.03 Forfeited — — (5,806) 91.35 (2,000) 26.01 Outstanding at December 31, 2019 176,888 67.14 213,866 61.28 218,689 52.75 Exercisable at December 31, 2019 131,216 60.12 140,115 49.41 148,702 41.62 Weighted-average fair value of options granted during the year $ — $ 28.01 $ 35.42 The aggregate intrinsic value of 176,888, 213,866, and 218,689 stock options outstanding at December 31, 2019, 2018, and 2017 was $3.7 million, $1.9 million, and $7.7 million, respectively. The aggregate intrinsic value of 131,216, 140,115, and 148,702 stock options exercisable at December 31, 2019, 2018, and 2017 was $3.6 million, $1.9 million, and $6.8 million, respectively. The aggregate intrinsic value of 36,978, 33,424, and 59,480 stock options exercised for the years ended December 31, 2019, 2018, and 2017 was $1.4 million, $2.0 million, and $3.3 million, respectively. Information pertaining to options outstanding at December 31, 2019, is as follows: Options Outstanding Options Exercisable Weighted Weighted Average Average Remaining Weighted Weighted Remaining Range of Number Contractual Average Number Average Contractual Exercise Prices Outstanding Life Exercise Price Outstanding Exercise Price Life $ 26.01 - $ 40.00 20,170 1.7 years $ 31.56 20,164 $ 31.56 $ 40.01 - $ 55.00 19,874 2.9 years $ 41.42 19,874 $ 41.42 $ 55.01 - $ 70.00 74,609 5.1 years $ 63.61 68,186 $ 63.59 $ 70.01 - $ 85.00 — — years $ — — $ — $ 85.01 - $ 91.35 62,235 7.6 years $ 91.12 22,992 $ 91.07 176,888 5.4 years $ 67.14 131,216 $ 60.12 4.6 years The fair value of options is estimated at the date of grant using the Black-Scholes option pricing model and expensed over the options’ vesting periods. The following weighted-average assumptions were used in valuing options issued: Year ended December 31, 2019 2018 2017 Dividend yield — % 1.46 % 1.40 % Expected life — years 8.5 years 8.5 years Expected volatility — % 28.0 % 37.2 % Risk-free interest rate — % 2.54 % 2.43 % As of December 31, 2019, there was $720,000 of total unrecognized compensation cost related to non-vested stock option grants under the plans. The cost is expected to be recognized over a weighted-average period of 0.76 years as of December 31, 2019. The total fair value of shares vested during the years ended December 31, 2019, 2018 and 2017 was approximately $799,000, $700,000 and $578,000, respectively. Compensation expense of $641,000, $751,000, and Restricted Stock The Company routinely also grants shares of restricted stock to key employees and non-employee directors. These awards help align the interests of these employees and directors with the interests of the shareholders of the Company by providing economic value directly related to increases in the value of the Company’s stock. The value of the stock awarded is established as the fair market value of the stock at the time of the grant. The Company recognizes expense, equal to the total value of such awards, ratably over the vesting period of the stock grants. Grants to employees typically cliff vest after four years. Grants to non-employee directors typically vest within a 12-month All restricted stock agreements are conditioned upon continued employment. Termination of employment prior to a vesting date, as described below, would terminate any interest in non-vested shares. Prior to vesting of the shares, as long as employed by the Company, the key employees and non-employee directors will have the right to vote such shares and to receive dividends paid with respect to such shares. All restricted shares will fully vest in the event of change in control of the Company or upon the death of the recipient. Non-vested restricted stock for the year ended December 31, 2019 is summarized in the following table. All information has been retroactively adjusted for stock dividends and stock splits. Weighted- Average Grant-Date Restricted Stock Shares Fair Value Nonvested at January 1, 2019 104,419 $ 62.45 Granted 8,934 73.34 Vested (40,858) 70.06 Forfeited (3,045) 72.01 Nonvested at December 31, 2019 69,450 58.96 The Company granted 8,934; 7,836; and 26,053 shares for the years ended December 31, 2019, 2018, and 2017, respectively. The weighted-average- grant-date fair value of restricted shares granted in 2019, 2018, and 2017 was $73.34, $87.37, and $89.11, respectively. Compensation expense of $1.7 million, $2.5 million, and $2.5 million was recorded in 2019, 2018, and 2017, respectively. The vesting schedule of these shares as of December 31, 2019 is as follows: Shares 2020 48,830 2021 3,905 2022 4,174 2023 4,553 2024 3,405 Thereafter 4,583 69,450 As of December 31, 2019, there was $1.1 million of total unrecognized compensation cost related to non-vested restricted stock granted under the plans. The cost is expected to be recognized over a weighted-average period of 1.25 years as of December 31, 2019. The total fair value of shares vested during the years ended December 31, 2019, 2018 and 2017 was approximately $3.0 million, $2.5 million, and $3.1 million, respectively. Restricted Stock Units (“RSU”) The Company from time-to-time also grants performance RSUs to key employees. These awards help align the interests of these employees with the interests of the shareholders of the Company by providing economic value directly related to the performance of the Company. Some performance RSU grants contain a three-year performance period while others contain a one-year performance period and a time vested requirement (generally four years from grant date). The Company communicates threshold, target, and maximum performance RSU awards and performance targets to the applicable key employees at the beginning of a performance period. Dividends are not paid in respect to the awards during the performance period. The value of the RSUs awarded is established as the fair market value of the stock at the time of the grant. The Company recognizes expenses on a straight-line basis typically over the performance and vesting periods based upon the probable performance target that will be met. For the year ended December 31, 2019, the Company accrued for 84.3% of the RSUs granted, based on Management’s expectations of performance. Nonvested RSUs for the year ended December 31, 2019 is summarized in the following table. Weighted- Average Grant-Date Restricted Stock Units Shares Fair Value Nonvested at January 1, 2019 200,540 $ 85.10 Granted 159,521 68.27 Vested (31,723) 89.40 Forfeited (3,737) 82.18 Nonvested at December 31, 2019 324,601 76.44 The Company granted 159,521, 113,270 and 77,301 shares for the year ended December 31, 2019, 2018 and 2017, respectively. The weighted-average grant-date fair value of restricted stock units granted in 2019 was $68.27. Compensation expense of $6.4 million, $5.5 million, and $3.6 million was recorded in 2019, 2018 and 2017, respectively. As of December 31, 2019, there was $10.5 million of total unrecognized compensation cost related to nonvested RSUs granted under the plan. This cost is expected to be recognized over a weighted-average period of 1.76 years as of December 31, 2019. The total fair value of restricted stock units that vested during the years ended December 31, 2019, 2018 and 2017 was approximately $5.8 million, $5.7 million, and $5.0 million, respectively. Employee Stock Purchase Plan The Company has registered 363,825 shares of common stock in connection with the establishment of an Employee Stock Purchase Plan. The plan, which expires June 30, 2022, is available to all employees who have attained age 21 and completed six months of service. The Company currently has more than 50,000 shares available for issuances under the plan. The price at which common stock may be purchased for each quarterly option period is the lesser of 95% of the common stock’s fair value on either the first or last day of the quarter. The 2002 Employee Stock Purchase Plan permits eligible employees to purchase Company stock at a discounted price. Beginning July 1, 2009, the 15% discount was reduced to 5%. The Company recognized $75,000, $82,000 and $43,000 in share-based compensation expense for the years ended December 31, 2019, 2018 and 2017, respectively. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2019 | |
Stock Repurchase Program | |
Stock Repurchase Program | Note 19—Stock Repurchase Program In February 2004, we announced a program with no formal expiration date to repurchase up to 250,000 of our common shares. In March 2017, the Board of Directors approved and reset the number of shares available to be repurchased under the 2004 stock repurchase program to 1,000,000 , all of which had been repurchased as of December 31, 2018. In January 2019, the Board of Directors approved a new program (“2019 repurchase program”) to repurchase up to an additional of our common shares, all of which had been repurchased as of June 30, 2019. In June 2019, the Board of Directors authorized an additional of our common shares to be repurchased under the 2019 repurchase program, however we are not obligated to repurchase any additional shares under the 2019 repurchase program. As of December 31, 2019, we have repurchased per share (excluding commission expense). In 2018, the Company repurchased a total of |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Lease Commitments | |
Lease Commitments | Note 20—Lease Commitments On January 1, 2019, we adopted the requirements of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The purpose of the update was to increase transparency and comparability between organizations that enter into lease agreements. The key difference between the previous guidance and the update is the recognition of a right-of-use asset (ROU) and lease liability on the statement of financial position for those leases previously classified as operating leases under the old guidance. Accounting Standards Codification (“ASC”). Our lease agreements in which ASC Topic 842 has been applied are primarily for real estate properties, including retail branch locations, operations and administration locations and stand-alone ATM locations. We performed an analysis on equipment leases for the implementation of ASC Topic 842 and determined the number and dollar amount of our equipment leases was not material. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We chose the transition method of adoption where we initially apply the new lease standard at the effective date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption if applicable. Therefore, we applied this standard to all existing leases as of the adoption date of January 1, 2019, recording a ROU asset and a lease liability in an equal amount. We recorded a ROU asset and lease liability million at the commencement date of January 1, 2019. We did not have a cumulative-effect adjustment to the opening balance of retained earnings at commencement and the adoption of ASC Topic 842 did not have a material impact on our consolidated income statement. With this transition method, we do not have to restate comparative prior periods presented in the financial statements related to ASC Topic 842, but will present comparative prior periods disclosures using the previous accounting guidance for leases. Disclosures for prior periods under the previous accounting guidance were on an annual basis only. As of December 31, 2019, we had operating ROU assets of $87.4 million and operating lease liabilities of $88.8 million. We maintain operating leases on land and buildings for our operating centers, branch facilities and ATM locations. Most leases include one . The exercise of renewal options is based on the sole judgment of management and what they consider to be reasonably certain given the environment today. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to us if the option is not exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term. We do not sublease any portion of these locations to third parties. Year Ended (Dollars in thousands) December 31, 2019 Lease Expense Components: Operating lease expense $ 8,804 Short-term lease expense 494 Variable lease expense 430 Total lease expense $ 9,728 Supplemental Cash Flow and Other Information Related to Leases: Cash paid for amounts included in the measurement of lease liabilities - operating leases $ 7,725 Initial ROU assets recorded in exchange for new lease liabilities - operating leases $ 10,239 Weighted - average remaining lease term (years) - operating leases 14.14 Weighted - average discount rate - operating leases 3.9% December 31, 2019 Supplemental Balance Sheet Information Related to Leases Operating lease ROU assets ( premises and equipment $ 87,389 Operating lease liabilities ( other liabilities $ 88,846 Maturity Analysis of Lease Liabilities: Year Ending December 31, 2020 $ 8,077 2021 8,226 2022 8,341 2023 8,414 2024 7,974 Thereafter 76,222 Total 117,254 Less: Imputed Interest (28,408) Lease Liability $ 88,846 As of December 31, 2019, we did not maintain any finance leases, leases with related parties, and we determined that the number and dollar amount of our equipment leases was immaterial. As of December 31, 2019, we have additional operating leases that have not yet commenced of $5.2 million. These operating leases will commence in fiscal year 2020 with lease terms of 5 See further discussion in Note 1 – Summary of Significant Accounting Policies page F-17 on accounting for leases. Lease Commitments Disclosure at December 31, 2018 Prior to Adoption of ASU 2016-02 The Company’s subsidiary was obligated at December 31, 2018, under certain noncancelable operating leases extending to the year 2038 pertaining to banking premises and equipment. Some of the leases provide for the payment of property taxes and insurance and contain various renewal options. The exercise of renewal options is, of course, dependent upon future events. Accordingly, the following summary does not reflect possible additional payments due if renewal options are exercised. Future minimum lease payments as of December 31, 2018, by year and in the aggregate, under noncancelable operating leases with initial or remaining terms in excess of one year are as follows: (Dollars in thousands) Year Ended December 31, 2019 $ 7,497 2020 7,580 2021 7,423 2022 6,823 2023 6,123 Thereafter 16,510 $ 51,956 Total lease expense for the years ended December 31, 2018 and 2017 was $7.9 million and $6.2 million, respectively. |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Contingent Liabilities | |
Contingent Liabilities | Note 21—Contingent Liabilities The Company has been named as defendant in various legal actions, arising from its normal business activities, in which damages in various amounts are claimed. The Company is also exposed to litigation risk related to the prior business activities of banks acquired through whole bank acquisitions as well as banks from which assets were acquired and liabilities assumed in FDIC-assisted transactions. Although the amount of any ultimate liability with respect to such matters cannot be determined, in the opinion of management, any such liability will not have a material effect on the Company’s consolidated financial statements. The Company and its subsidiary are involved at times in certain litigation arising in the normal course of business. In the opinion of management as of December 31, 2019, there is no pending or threatened litigation that will have a material effect on the Company’s consolidated financial position or results of operations. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions | |
Related Party Transactions | Note 22—Related Party Transactions During 2019 and 2018, the Company’s banking subsidiary had loan and deposit relationships with certain related parties, principally directors and executive officers, their immediate families and their business interests. All of these relationships were in the ordinary course of business at rates and terms substantially consistent with similar transactions with unrelated parties. Loans outstanding to this group (including immediate families and business interests) totaled $37.5 million and $23.5 million at December 31, 2019 and 2018 respectively. During 2019, $32.5 million of new loans were made to this group while repayments of $18.5 million were received during the year. Related party deposits totaled approximately $21.8 million and $17.7 million at December 31, 2019 and 2018, respectively. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments with Off-Balance Sheet Risk | |
Financial Instruments with Off-Balance Sheet Risk | Note 23—Financial Instruments with Off-Balance Sheet Risk The Company’s subsidiary is a party to credit related financial instruments with off-balance sheet risks in the normal course of business to meet the financing needs of their customers. These financial instruments include commitments to extend credit, standby letters of credit and financial guarantees. Such commitments involve, to varying degrees, elements of credit, interest rate, or liquidity risk in excess of the amounts recognized in the consolidated balance sheets. The contract amounts of these instruments express the extent of involvement the subsidiary has in particular classes of financial instruments. The subsidiary’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, standby letters of credit, and financial guarantees is represented by the contractual amount of those instruments. The subsidiary uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. At December 31, 2019 and 2018, the following financial instruments, whose contract amounts represent credit risk, were outstanding: December 31, (Dollars in thousands) 2019 2018 Commitments to extend credit $ 2,902,000 $ 2,748,901 Standby letters of credit and financial guarantees 32,869 32,725 $ 2,934,869 $ 2,781,626 Commitments to Extend Credit Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future liquidity requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the bank upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and personal guarantees. Unfunded commitments under commercial lines-of-credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines-of-credit are uncollateralized and usually do not contain a specified maturity date and may not be drawn to the extent to which the banking subsidiary is committed. Standby Letters of Credit and Financial Guarantees Standby letters of credit and financial guarantees are conditional commitments issued by the banking subsidiary to guarantee the performance of a customer to a third party. Those letters of credit and guarantees are primarily issued to support public and private borrowing arrangements. Essentially, all standby letters of credit have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the customer. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value | |
Fair Value | Note 24—Fair Value FASB ASC 820, Fair Value Measurements and Disclosures The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Available for sale securities and derivative contracts are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as loans held for sale, impaired loans, OREO, and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. FASB ASC 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows: Level 1 Observable inputs such as quoted prices in active markets; Level 2 Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3 Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The following is a description of valuation methodologies used for assets recorded at fair value. Investment Securities Securities available for sale are valued on a recurring basis at quoted market prices where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange and The NASDAQ Stock Market, or U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities and debentures issued by government sponsored entities, municipal bonds and corporate debt securities. Securities held to maturity are valued at quoted market prices or dealer quotes similar to securities available for sale. The carrying value of Federal Home Loan Bank stock approximates fair value based on the redemption provisions. Mortgage Loans Held for Sale Mortgage loans held for sale are carried at the fair market value. The fair values of mortgage loans held for sale are based on commitments on hand from investors within the secondary market for loans with similar characteristics. As such, the fair value adjustments for mortgage loans held for sale are recurring Level 2. Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan may be considered impaired and an allowance for loan losses may be established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment using estimated fair value methodologies. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, and liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At December 31, 2019, substantially all of the impaired loans were evaluated based on the fair value of the collateral because such loans were considered collateral dependent. Impaired loans, where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company considers the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company considers the impaired loan as nonrecurring Level 3. Other Real Estate Owned (“OREO”) Typically OREO, consisting of properties obtained through foreclosure or in satisfaction of loans, is reported at fair value, determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, adjusted for estimated selling costs (Level 2). However, OREO is considered Level 3 in the fair value hierarchy because management has qualitatively applied a discount due to the size, supply of inventory, and the incremental discounts applied to the appraisals. Management also considers other factors, including changes in absorption rates, length of time the property has been on the market, and anticipated sales values, which have resulted in adjustments to the collateral value estimates indicated in certain appraisals. At the time of foreclosure, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the allowance for loan losses. Gains or losses on sale and generally any subsequent adjustments to the value are recorded as a component of OREO expense. Derivative Financial Instruments Fair value is estimated using pricing models of derivatives with similar characteristics or discounted cash flow models where future floating cash flows are projected and discounted back; and accordingly, these derivatives are classified within Level 2 of the fair value hierarchy. See Note 27—Derivative Financial Instruments for additional information. Mortgage servicing rights (“MSRs”) The estimated fair value of MSRs is obtained through an independent derivatives dealer analysis of future cash flows. The evaluation utilizes assumptions market participants would use in determining fair value including market discount rates, prepayment speeds, servicing income, servicing costs, default rates and other market driven data, as well as the market’s perception of future interest rate movements. MSRs are classified as Level 3. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis. Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2019: Assets Derivative financial instruments $ 16,252 $ — $ 16,252 $ — Loans held for sale 59,363 — 59,363 — Securities available for sale: Government-sponsored entities debt 25,941 — 25,941 — State and municipal obligations 208,415 — 208,415 — Mortgage-backed securities 1,721,691 — 1,721,691 — Total securities available for sale 1,956,047 — 1,956,047 — Mortgage servicing rights 30,525 — — 30,525 $ 2,062,187 $ — $ 2,031,662 $ 30,525 Liabilities Derivative financial instruments $ 31,273 $ — $ 31,273 $ — December 31, 2018: Assets Derivative financial instruments $ 5,090 $ — $ 5,090 $ — Loans held for sale 22,925 — 22,925 — Securities available for sale: Government-sponsored entities debt 48,251 — 48,251 — State and municipal obligations 200,768 — 200,768 — Mortgage-backed securities 1,268,048 — 1,268,048 — Total securities available for sale 1,517,067 — 1,517,067 — Mortgage servicing rights 34,727 — — 34,727 $ 1,579,809 $ — $ 1,545,082 $ 34,727 Liabilities Derivative financial instruments $ 4,421 $ — $ 4,421 $ — There were no financial instruments transferred between Level 1 and Level 2 of the valuation hierarchy for the years ended December 31, 2019 and 2018. Changes in Level 3 Fair Value Measurements When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since Level 3 financial instruments typically include, in addition to the unobservable or Level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources), the gains and losses below include changes in fair value due in part to observable factors that are part of the valuation methodology. A reconciliation of the beginning and ending balances of Level 3 assets and liabilities recorded at fair value on a recurring basis for the years ended December 31, 2019 and 2018 is as follows: (Dollars in thousands) Assets Liabilities Fair value, January 1, 2019 $ 34,727 $ — Servicing assets that resulted from transfers of financial assets 7,363 — Changes in fair value due to valuation inputs or assumptions (6,976) — Changes in fair value due to decay (4,589) — Fair value , December 31, 2019 $ 30,525 $ — Fair value, January 1, 2018 $ 31,119 $ — Servicing assets that resulted from transfers of financial assets 5,962 — Changes in fair value due to valuation inputs or assumptions 1,861 — Changes in fair value due to decay (4,215) — Fair value, December 31, 2018 $ 34,727 $ — There were no unrealized losses included in accumulated other comprehensive income related to Level 3 financial assets and liabilities at December 31, 2019 or 2018. See Note 28 – Loan Servicing, Mortgage Obligation, and Loans Held for Sale for information about recurring Level 3 fair value measurements of mortgage servicing rights. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis: Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2019: OREO $ 11,964 $ — $ — $ 11,964 Non-acquired impaired loans 15,444 — — 15,444 December 31, 2018: OREO $ 11,410 $ — $ — $ 11,410 Non-acquired impaired loans 13,164 — — 13,164 Quantitative Information about Level 3 Fair Value Measurements Weighted Average December 31, December 31, Valuation Technique Unobservable Input 2019 2018 Nonrecurring measurements: Non-acquired impaired loans Discounted appraisals Collateral discounts 2 % 3 % OREO Discounted appraisals Collateral discounts and estimated costs to sell 31 % 23 % Fair Value of Financial Instruments The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those models are significantly affected by the assumptions used, including the discount rates and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. The use of different methodologies may have a material effect on the estimated fair value amounts. The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2019 and 2018. Such amounts have not been revalued for purposes of these consolidated financial statements since those dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and Cash Equivalents Investment Securities —Securities held to maturity are valued at quoted market prices or dealer quotes. The carrying value of FHLB stock approximates fair value based on the redemption provisions. The carrying value of the Company’s investment in unconsolidated subsidiaries approximates fair value. See Note 3-Investment Securities for additional information, as well as page F-71 regarding fair value Loans held for sale Loans — ASU 2016-01 - Financial Instruments – Overall – Recognition and Measurement of Financial Assets and Financial Liabilities became effective for the Company on January 1, 2018. This accounting standard requires the company to calculate the fair value of our loans for disclosure purposes based on an estimated exit price. With ASU 2016-01, to estimate an exit price, all loans (fixed and variable) are being valued with a discounted cash flow analyses for loans that includes the Company’s estimate of future credit losses expected to be incurred over the life of the loans. Fair values for certain mortgage loans (e.g., one-to-four family residential) and other consumer loans are estimated using discounted cash flow analyses based on the Company’s current rates offered for new loans of the same type, structure and credit quality. Fair values for other loans (e.g., commercial real estate and investment property mortgage loans, commercial and industrial loans) are estimated using discounted cash flow analyses, using interest rates currently being offered by the Company for loans with similar terms to borrowers of similar credit quality. Fair values for non-performing loans are estimated using a discounted cash flow analyses. For previous periods, variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Also, for all other loans where a discounted cash flow analyses was used, there was no estimate of future credit losses expected to be incurred over the life of the loans included in the valuation. Deposit Liabilities Federal Funds Purchased and Securities Sold Under Agreements to Repurchase Other Borrowings Accrued Interest Derivative Financial Instruments Commitments to Extend Credit, Standby Letters of Credit and Financial Guarantees The fair values of guarantees and letters of credit are based on fees currently charged for similar agreements or on the estimated costs to terminate them or otherwise settle the obligations with the counterparties at the reporting date. The estimated fair value, and related carrying amount, of the Company’s financial instruments are as follows: Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 December 31, 2019 Financial assets: Cash and cash equivalents $ 688,704 $ 688,704 $ 688,704 $ — $ — Investment securities 2,005,171 2,005,171 49,124 1,956,047 — Loans held for sale 59,363 59,363 — 59,363 — Loans, net of allowance for loan losses 11,313,113 11,452,003 — — 11,452,003 Accrued interest receivable 36,774 36,774 — 8,500 28,274 Mortgage servicing rights 30,525 30,525 — — 30,525 Interest rate swap - non-designated hedge 15,350 15,350 — 15,350 — Other derivative financial instruments (mortgage banking related) 902 902 — 902 — Financial liabilities: Deposits 12,177,096 11,406,477 — 11,406,477 — Federal funds purchased and securities sold under agreements to repurchase 298,741 298,741 — 298,741 — Other borrowings 815,936 818,210 — 818,210 — Accrued interest payable 4,916 4,916 — 4,916 — Interest rate swap - non-designated hedge 16,693 16,693 — 16,693 — Interest rate swap - cash flow hedge 13,791 13,791 — 13,791 — Other derivative financial instruments (mortgage banking related) 789 789 — 789 — Off balance sheet financial instruments: Commitments to extend credit — 36,031 — 36,031 — December 31, 2018 Financial assets: Cash and cash equivalents $ 408,983 $ 408,983 $ 408,983 $ — $ — Investment securities 1,542,671 1,542,671 25,604 1,517,067 — Loans held for sale 22,925 22,925 — 22,925 — Loans, net of allowance for loan losses 10,962,037 10,613,571 — — 10,613,571 Accrued interest receivable 35,997 35,997 — 6,908 29,089 Mortgage servicing rights 34,727 34,727 — — 34,727 Interest rate swap - non-designated hedge 3,824 3,824 — 3,824 — Other derivative financial instruments (mortgage banking related) 1,267 1,267 — 1,267 — Financial liabilities: Deposits 11,646,933 10,561,394 — 10,561,394 — Federal funds purchased and securities sold under agreements to repurchase 270,649 270,649 — 270,649 — Other borrowings 266,084 269,134 — 269,134 — Accrued interest payable 4,719 4,719 — 4,719 — Interest rate swap - non-designated hedge 4,373 4,373 — 4,373 — Interest rate swap - cash flow hedge 48 48 — 48 — Off balance sheet financial instruments: Commitments to extend credit — (88,424) — (88,424) — |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Matters | |
Regulatory Matters | Note 25—Regulatory Matters The Company is subject to regulations with respect to certain risk-based capital ratios. These risk-based capital ratios measure the relationship of capital to a combination of balance sheet and off-balance sheet risks. The values of both balance sheet and off-balance sheet items are adjusted based on the rules to reflect categorical credit risk. In addition to the risk-based capital ratios, the regulatory agencies have also established a leverage ratio for assessing capital adequacy. The leverage ratio is equal to Tier 1 capital divided by total consolidated on-balance sheet assets (minus amounts deducted from Tier 1 capital). The leverage ratio does not involve assigning risk weights to assets. In July 2013, the Federal Reserve announced its approval of a final rule to implement the regulatory capital reforms developed by the Basel Committee on Banking Supervision (“Basel III”), among other changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The new rules became effective January 1, 2015, subject to a phase-in period for certain aspects of the new rules. As applied to the Company and the Bank, the new rules include a new minimum ratio of common equity Tier 1 capital ("CET1") to risk-weighted assets of 4.5%. The new rules also raise the minimum required ratio of Tier 1 capital to risk-weighted assets from 4% to 6 %. The minimum required leverage ratio under the new rules is 4 %. The minimum required total capital to risk-weighted assets ratio remains at 8% under the new rules. In order to avoid restrictions on capital distributions and discretionary bonus payments to executives, under the new rules a covered banking organization is also required to maintain a “capital conservation buffer” in addition to its minimum risk-based capital requirements. This buffer is required to consist solely of common equity Tier 1, and the buffer will apply to all three risk-based measurements (CET1, Tier 1 capital and total capital). The capital conservation buffer was phased in incrementally over time, beginning January 1, 2016 and became fully effective on January 1, 2019, and ultimately consists of an additional amount of Tier 1 common equity equal to 2.5% of risk-weighted assets. The Bank is also subject to the regulatory framework for prompt corrective action, which identifies five capital categories for insured depository institutions (well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized) and is based on specified thresholds for each of the three risk-based regulatory capital ratios (CET1, Tier 1 capital and total capital) and for the leverage ratio. The following table presents actual and required capital ratios as of December 31, 2019 for the Company and the Bank under the Basel III capital rules. The minimum required capital amounts presented include the minimum required capital levels based on the phase-in provisions of the Basel III Capital Rules and the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules have been fully phased-in. Capital levels required for the Bank to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Minimum Capital Minimum Capital Required to be Required - Basel III Required - Basel III Considered Well Actual Phase-In Schedule Fully Phased In Capitalized (Dollars in thousands) Amount Ratio Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio December 31, 2019 Common equity Tier 1 to risk-weighted assets: Consolidated $ 1,326,725 11.30 % $ 822,225 7.00 % $ 822,225 7.00 % $ 763,495 6.50 % South State Bank (the Bank) 1,417,616 12.07 % 822,218 7.00 % 822,218 7.00 % 763,488 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 1,438,995 12.25 % 998,416 8.50 % 998,416 8.50 % 939,686 8.00 % South State Bank (the Bank) 1,417,616 12.07 % 998,407 8.50 % 998,407 8.50 % 939,677 8.00 % Total capital to risk-weighted assets: Consolidated 1,501,321 12.78 % 1,233,338 10.50 % 1,233,338 10.50 % 1,174,607 10.00 % South State Bank (the Bank) 1,479,942 12.60 % 1,233,327 10.50 % 1,233,327 10.50 % 1,174,597 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 1,438,995 9.73 % 591,731 4.00 % 591,731 4.00 % 739,664 5.00 % South State Bank (the Bank) 1,417,616 9.59 % 591,592 4.00 % 591,592 4.00 % 739,490 5.00 % December 31, 2018: Common equity Tier 1 to risk-weighted assets: Consolidated $ 1,335,826 12.05 % $ 706,981 6.38 % $ 776,293 7.00 % $ 720,844 6.50 % South State Bank (the Bank) 1,427,764 12.87 % 707,039 6.38 % 776,356 7.00 % 720,902 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 1,447,428 13.05 % 873,330 7.88 % 942,642 8.50 % 887,192 8.00 % South State Bank (the Bank) 1,427,764 12.87 % 873,401 7.88 % 942,718 8.50 % 887,264 8.00 % Total capital to risk-weighted assets: Consolidated 1,503,561 13.56 % 1,095,128 9.88 % 1,164,440 10.50 % 1,108,990 10.00 % South State Bank (the Bank) 1,483,897 13.38 % 1,095,217 9.88 % 1,164,534 10.50 % 1,109,080 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 1,447,428 10.65 % 543,506 4.00 % 543,506 4.00 % 679,383 5.00 % South State Bank (the Bank) 1,427,764 10.51 % 543,387 4.00 % 543,387 4.00 % 679,234 5.00 % As of December 31, 2019 and 2018, the capital ratios of the Company and the Bank were well in excess of the minimum regulatory requirements and exceeded the thresholds for the “well capitalized” regulatory classification. |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Statements of Parent Company | |
Condensed Financial Statements of Parent Company | Note 26—Condensed Financial Statements of Parent Company Financial information pertaining only to South State Corporation is as follows: Condensed Balance Sheets December 31, (Dollars in thousands) 2019 2018 ASSETS Cash $ 21,688 $ 21,092 Investment in subsidiary 2,467,466 2,461,836 Other assets 204 54 Total assets $ 2,489,358 $ 2,482,982 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities $ 116,345 $ 116,686 Shareholders’ equity 2,373,013 2,366,296 Total liabilities and shareholders’ equity $ 2,489,358 $ 2,482,982 Condensed Statements of Income Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Income: Dividends from subsidiary $ 214,852 $ 117,298 $ 63,703 Operating income 5,386 67 580 Total income 220,238 117,365 64,283 Operating expenses 15,409 15,302 15,482 Income before income tax benefit and equity in undistributed earnings of subsidiaries 204,829 102,063 48,801 Applicable income tax benefit 1,883 3,055 5,053 Equity in undistributed earnings of subsidiary (excess distribution) (20,229) 73,753 33,700 Net income available to common shareholders $ 186,483 $ 178,871 $ 87,554 Condensed Statements of Cash Flows Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 186,483 $ 178,871 $ 87,554 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 666 666 666 Share-based compensation 8,839 8,783 6,934 Gain on sale of securities available for sale (5,366) — (486) Decrease (increase) in other assets (159) 1,465 (1,564) Decrease in other liabilities (959) (2,048) (6,341) Undistributed earnings of subsidiary 20,229 (73,753) (33,700) Net cash provided by operating activities 209,733 113,984 53,063 Cash flows from investing activities: Proceeds from sales and calls of other investment securities 5,366 — 687 Net cash inflow from acquisitions — — 15,468 Net cash provided by investing activities 5,366 — 16,155 Cash flows from financing activities: Repayment of other borrowings — — (30,000) Common stock issuance 1,394 1,331 1,056 Common stock repurchased (159,431) (70,577) (5,512) Dividends paid on common stock (57,696) (50,557) (38,623) Stock options exercised 1,230 1,032 1,965 Net cash used in financing activities (214,503) (118,771) (71,114) Net increase (decrease) in cash and cash equivalents 596 (4,787) (1,896) Cash and cash equivalents at beginning of period 21,092 25,879 27,775 Cash and cash equivalents at end of period $ 21,688 $ 21,092 $ 25,879 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 27—Derivative Financial Instruments The Company uses certain derivative instruments to meet the needs of its customers as well as to manage the interest rate risk associated with certain transactions. The following table summarizes the derivative financial instruments utilized by the Company: December 31, 2019 December 31, 2018 Balance Sheet Notional Estimated Fair Value Notional Estimated Fair Value (Dollars in thousands) Location Amount Gain Loss Amount Gain Loss Cash flow hedges of interest rate risk on Junior Subordinated Debt: Pay fixed rate swap with counterparty Other Liabilities $ — $ — $ — $ 8,000 $ — $ 48 Cash flow hedges of interest rate risk on FHLB Advances: Pay fixed rate swap with counterparty Other Liabilities $ 700,000 $ — $ 13,791 $ — $ — $ — Fair value hedge of interest rate risk: Pay fixed rate swap with counterparty Other Assets and Other Liabilities $ 2,754 $ — $ 199 $ 2,824 $ — $ 51 Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with borrowers Other Assets and Other Liabilities $ 564,068 $ 15,277 $ 1,019 $ 368,513 $ 3,105 $ 4,193 Matched interest rate swaps with counterparty Other Assets and Other Liabilities $ 564,068 $ 73 $ 15,475 $ 368,513 $ 718 $ 129 Not designated hedges of interest rate risk - mortgage banking activities: Contracts used to hedge mortgage servicing rights Other Assets and Other Liabilities $ 133,000 $ — $ 789 $ 94,500 $ 1,184 $ — Forward sales commitments used to hedge mortgage pipeline Other Assets $ 87,773 $ 902 $ — $ 46,812 $ 83 $ — Total derivatives $ 2,051,663 $ 16,252 $ 31,273 $ 889,162 $ 5,090 $ 4,421 Cash Flow Hedges of Interest Rate Risk The Company is exposed to interest rate risk in the course of its business operations and manages a portion of this risk through the use of derivative financial instruments, in the form of interest rate swaps. The Company accounts for its interest rate swap that is classified as a cash flow hedge in accordance with FASB ASC 815, Derivatives and Hedging The Company utilizes the interest rate swap agreement essentially to convert a portion of its variable- rate debt to a fixed rate (cash flow hedge). For derivatives designated as hedging exposure to variable cash flows of a forecasted transaction (cash flow hedge), the derivative’s entire gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings or when the hedge is terminated. For derivatives that are not designated as hedging instruments, changes in the fair value of the derivatives are recognized in earnings immediately. For designated hedging relationships, we have a third party perform retrospective and prospective effectiveness testing on a quarterly basis using quantitative methods to determine if the hedge is still highly effective. Hedge accounting ceases on transactions that are no longer deemed highly effective, or for which the derivative has been terminated or de-designated. A cash flow hedge, in which we utilized an interest rate swap agreement essentially to convert a portion of its variable-rate debt to a fixed rate (cash flow hedge), matured June 15, 2019 and was no longer in existence at December 31, 2019. During 2009, we entered into a forward starting interest rate swap agreement with a notional amount of $8.0 million to manage interest rate risk due to periodic rate resets on its junior subordinated debt issued by SCBT Capital Trust II, an unconsolidated subsidiary of the Company established for the purpose of issuing trust preferred securities. We hedged the variable rate cash flows of subordinated debt against future interest rate increases by using an interest rate swap that effectively fixed the rate on the debt beginning on June 15, 2010, at which time the debt contractually converted from a fixed interest rate to a variable interest rate. The notional amount on which the interest payments were based was not exchanged. This derivatives contract called for us to pay a fixed rate of 4.06% on the $8.0 million notional amount and receive a variable rate of three-month LIBOR on the $8.0 million notional amount. For the three cash flow hedges that remain as of December 31, 2019, we utilize interest rate swap agreements to manage interest rate risk related to funding through short-term FHLB advances. In March 2019, we entered into three-month FHLB advances for $350 million and $150 million for which at this time we plan to continuously renew. At the same time, we entered into interest rate swap agreements with a notional amount of $350 million and $150 million to manage the interest rate risk related to these FHLB advances. In June 2019, we entered into a three-month FHLB advance for $200 million for which at this time we plan to continuously renew. At the same time, we entered into an interest rate swap agreement with a notional amount of $200 million to manage the interest rate risk related to this FHLB advance. With our plan to continually renew and reprice the FHLB advances every three months, we are treating this funding as variable rate funding. We are hedging the cash flows from these FHLB advances against future interest rate increases by using an interest rate swap that effectively fixed the rate on the debt. The notional amount on which the interest payments are based will not be exchanged related to these interest rate swaps. The derivative contract on the $350 million notional amount calls for us to pay a fixed rate of 2.44% and receive a variable rate of three-month LIBOR (1.91 % at December 31, 2019). The derivative contract on the $150 million notional amount calls for us to pay a fixed rate of 2.21% and receive a variable rate of three-month LIBOR (1.96% at December 31, 2019). The derivative contract on the $200 million notational amount calls for us to pay a fixed rate of 1.89% and receive a variable rate of three-month LIBOR (1.91% at December 31, 2019). The hedge for $350 million expires on March 23, 2023, the hedge for $150 million expires on March 29, 2024, and the hedge for the $200 million expires on June 3, 2024. The Company recognized an after-tax unrealized loss on its cash flow hedges in other comprehensive income for the year ended December 31, 2019 of $10.7 million, compared to a $154,000 gain for the year ended December 31, 2018. The Company recognized a $13.8 million cash flow hedge liability in other liabilities on the balance sheet at December 31, 2019, compared to a $48,000 cash flow hedge liability for the year ended December 31 2018. There was no ineffectiveness in the cash flow hedges during the years ended December 31, 2019 and 2018. (See Note 14 – Accumulated Other Comprehensive Income (Loss) for activity in accumulated comprehensive income (loss) and the amounts reclassified into earnings related the cash flow hedges.) Credit risk related to the derivative arises when amounts receivable from the counterparty (derivative dealer) exceed those payable. The Company controls the risk of loss by only transacting with derivative dealers that are national market makers whose credit ratings are strong. Each party to the interest rate swap is required to provide collateral in the form of cash or securities to the counterparty when the counterparty’s exposure to a mark-to-market replacement value exceeds certain negotiated limits. These limits are typically based on current credit ratings and vary with ratings changes. As of December 31, 2018, we provided $300,000 of collateral on the cash flow hedge on the junior subordinated debt which was included in cash and cash equivalents on the balance sheet as interest-bearing deposits with banks. As of December 31, 2019, we provided $22.6 million of collateral on the cash flow hedges on the FHLB advances which is also included in cash and cash equivalents on the balance sheet as interest-bearing deposits with banks. Also, we have a netting agreement with the counterparties. Balance Sheet Fair Value Hedge The Company maintains one loan swap, with an aggregate notional amount of $2.8 million at December 31, 2019, accounted for as a fair value hedge in accordance with ASC 815, Derivatives and Hedgin g. This derivative protects the company from interest rate risk caused by changes in the LIBOR curve in relation to a certain designated fixed rate loan. The derivative converts the fixed rate loan to a floating rate. Settlement occurs in any given period where there is a difference in the stated fixed rate and variable rate. The fair value of this hedge is recorded in other assets or in other liabilities. All changes in fair value are recorded through earnings as noninterest income. There was Non-designated Hedges of Interest Rate Risk Customer Swaps The Company maintains interest rate swap contracts with customers that are classified as non-designated hedges and are not speculative in nature. These agreements are designed to convert customer’s variable rate loans with the Company to fixed rate. These interest rate swaps are executed with loan customers to facilitate a respective risk management strategy and allow the customer to pay a fixed rate of interest to the Company. These interest rate swaps are simultaneously hedged by executing offsetting interest rate swaps with unrelated market counterparties to minimize the net risk exposure to the Company resulting from the transactions and allow the Company to receive a variable rate of interest. The interest rate swaps pay and receive interest based on a floating rate based on one month LIBOR plus credit spread, with payments being calculated on the notional amount. The interest rate swaps are settled monthly with varying maturities. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of December 31, 2019 and 2018, the interest rate swaps had an aggregate notional amount of approximately million, respectively. At December 31, 2019, the fair value of the interest rate swap derivatives are recorded in other assets at . All changes in fair value are recorded through earnings as noninterest income. For the year ended December 31, 2019 the Company recorded a loss of for the year ended December 31, 2018, related to the change in the fair value of these interest rate swap derivatives. As of December 31, 2019, we provided $26.4 million of collateral on the customer swaps which is also included in cash and cash equivalents on the balance sheet as interest-bearing deposits with banks. Foreign Exchange The Company also enters into foreign exchange contracts with customers to accommodate their need to convert certain foreign currencies into to U.S. Dollars. To offset the foreign exchange risk, the Company has entered into substantially identical agreements with an unrelated market counterparty to hedge these foreign exchange contracts. At December 31, 2019 and 2018, there were no outstanding contracts or agreements related to foreign currency. If there were foreign currency contracts outstanding at December 31, 2019 and 2018, the fair value of these contracts would be included in other assets and other liabilities in the accompanying balance sheet. All changes in fair value are recorded as other noninterest income. There was no gain or loss recorded related to the foreign exchange derivative for the years ended December 31, 2019 or 2018. Mortgage Banking The Company also has derivatives contracts that are not classified as accounting hedges to mitigate risks related to its mortgage banking activities. These instruments may include financial forwards, futures contracts, and options written and purchased, which are used to hedge mortgage servicing rights; while forward sales commitments are typically used to hedge the mortgage pipeline. Such instruments derive their cash flows, and therefore their values, by reference to an underlying instrument, index or referenced interest rate. The Company does not elect hedge accounting treatment for any of these derivative instruments and as a result, changes in fair value of the instruments (both gains and losses) are recorded in the Company’s consolidated statements of income in mortgage banking income. Mortgage Servicing Rights Derivatives contracts related to mortgage servicing rights are used to help offset changes in fair value and are written in amounts referred to as notional amounts. Notional amounts provide a basis for calculating payments between counterparties but do not represent amounts to be exchanged between the parties, and are not a measure of financial risk. On December 31, 2019 and 2018, the Company had derivative financial instruments outstanding with notional amounts totaling $133.0 million and $94.5 million related to mortgage servicing rights, respectively. The estimated net fair value of the open contracts related to the mortgage servicing rights was recorded as a loss of $789,000 at December 31, 2019 compared to a gain of $1.2 million at December 31, 2018. The following table presents the Company’s notional value of forward sale commitments and the fair value of those obligations along with the fair value of the mortgage loan pipeline. December 31, (Dollars in thousands) 2019 2018 Mortgage loan pipeline $ 80,785 $ 50,442 Expected closures 60,588 37,832 Fair value of mortgage loan pipeline commitments 1,160 705 Forward sales commitments 87,773 46,812 Fair value of forward commitments (258) (621) |
Loan Servicing, Mortgage Origin
Loan Servicing, Mortgage Origination, and Loans Held for Sale | 12 Months Ended |
Dec. 31, 2019 | |
Loan Servicing, Mortgage Origination, and Loans Held for Sale | |
Loan Servicing, Mortgage Origination, and Loans Held for Sale | Note 28—Loan Servicing, Mortgage Origination, and Loans Held for Sale The portfolio of residential mortgages serviced for others, which are not included in the accompanying balance sheets, was $3.3 billion and $3.1 billion at December 31, 2019 and 2018, respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts and disbursing payments to investors. The amount of contractually specified servicing fees earned by the Company during the year ended December 31, 2019 and 2018 was $7.8 million and $7.6 million, respectively. Servicing fees are recorded in mortgage banking income in the Company’s consolidated statements of income. At December 31, 2019 and 2018, MSRs were $30.5 million and $34.7 million, respectively, on the Company’s consolidated balance sheet. MSRs are recorded at fair value with changes in fair value recorded as a component of mortgage banking income in the Consolidated Statements of Income. The market value adjustments related to MSRs recorded in mortgage banking income for the years ended December 31, 2019 and 2018 were a loss of $7.0 million and a gain of $1.9 million, respectively. The Company has used various free standing derivative instruments to mitigate the income statement effect of changes in fair value due to changes in market value adjustments and to changes in valuation inputs and assumptions related to MSRs. The following table presents the changes in the fair value of MSRs and its offsetting hedge. Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Increase (decrease) in fair value of MSRs $ (6,976) $ 1,861 $ (595) Decay of MSRs (4,589) (4,215) (3,762) Gain (loss) related to derivatives 3,967 (953) 200 Net effect on statements of income $ (7,598) $ (3,307) $ (4,157) The fair value of MSRs is highly sensitive to changes in assumptions and fair value is determined by estimating the present value of the asset’s future cash flows utilizing market-based prepayment rates, discount rates and other assumptions validated through comparison to trade information, industry surveys and with the use of independent third party appraisals. Changes in prepayment speed assumptions have the most significant impact on the fair value of MSRs. Generally, as interest rates decline, mortgage loan prepayments accelerate due to increased refinance activity, which results in a decrease in the fair value of the MSR. Measurement of fair value is limited to the conditions existing and the assumptions utilized as of a particular point in time, and those assumptions may not be appropriate if they are applied at a different time. See Note 24 — The characteristics and sensitivity analysis of the MSRs are included in the following table. December 31, (Dollars in thousands) 2019 2018 Composition of residential loans serviced for others Fixed-rate mortgage loans 99.8 % 99.8 % Adjustable-rate mortgage loans 0.2 % 0.2 % Total 100.0 % 100.0 % Weighted average life 6.55 years 7.88 years Constant Prepayment rate (CPR) 10.3 % 7.3 % Weighted average discount rate 9.4 % 9.4 % Effect on fair value due to change in interest rates 25 basis point increase $ 2,477 $ 1,504 50 basis point increase 4,452 2,740 25 basis point decrease (2,938) (1,981) 50 basis point decrease (6,228) (4,421) The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the changes in assumptions to fair value may not be linear. Also, in this table, the effects of an adverse variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumptions, while in reality, changes in one factor may result in changing another, which may magnify or contract the effect of the change. Custodial escrow balances maintained in connection with the loan servicing were $16.5 million and $16.2 million at December 31, 2019 and 2018. Whole loan sales were $812.3 million and $645.7 million for the years ended December 31, 2019 and 2018, of which $660.6 million and $498.7 million or 81.3% and 77.2% were sold with the servicing rights retained by the Company. Loans held for sale have historically been comprised of residential mortgage loans awaiting sale in the secondary market, which generally settle in 15 to 45 days. At December 31, 2019, loans held for sale were $59.4 million, compared with $22.9 million at December 31, 2018. |
Investments in Qualified Afford
Investments in Qualified Affordable Housing Projects | 12 Months Ended |
Dec. 31, 2019 | |
Investment In Qualified Affordable Housing Projects. | |
Investment in Qualified Affordable Housing Projects | Note 29—Investments in Qualified Affordable Housing Projects The Company has investments in qualified affordable housing projects (“QAHPs”) that provide low income housing tax credits and operating loss benefits over an extended period. The tax credits and the operating loss tax benefits that are generated by each of the properties are expected to exceed the total value of the investment made by the Company. For the year ended December 31, 2019, tax credits and other tax benefits of $5.9 million and amortization of $6.1 million were recorded. For the year ended December 31, 2018, the Company recorded tax credits and other tax benefits of $4.6 million and amortization of $3.8 million. At December 31, 2019 and 2018, the Company’s carrying value of QAHPs was $77.2 million and $44.0 million, respectively, with an original investment of $97.3 million. The Company has $36.1 million and $17.5 million in remaining funding obligations related to these QAHPs recorded in liabilities at December 31, 2019 and 2018, respectively. None of the original investment will be repaid. The investment in QAHPs is being accounted for using the equity method. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events | |
Subsequent Events | Note 30—Subsequent Events Proposed Merger with CenterState Bank Corporation On January 25, 2020, South State and CenterState Bank Corporation, a Florida corporation (“CenterState”) entered into an Agreement and Plan of Merger (the “merger agreement”), pursuant to which South State and CenterState have agreed to combine their respective companies in an all-stock merger of equals. The merger agreement provides that, upon the terms and subject to the conditions set forth therein, CenterState will merge with and into South State, with South State continuing as the surviving entity, in a transaction we refer to as the “merger.” The merger agreement was unanimously approved by the boards of directors of South State and CenterState, and is subject to shareholder and regulatory approvals and other customary closing conditions. Under the terms of the merger agreement, shareholders of CenterState will receive 0.3001 shares of South State common stock for each share of CenterState common stock they own. After the merger, it is anticipated that CenterState shareholders will own approximately 53% and South State shareholders will own approximately 47% of the combined company. The aggregate consideration, including “in the money” outstanding stock options, is valued at approximately $2.9 billion, based on approximately 125,174,000 shares of CenterState common stock outstanding as of December 31, 2019 and on South State’s February 20, 2020 closing stock price of $78.16. The transaction is expected to close during the third quarter of 2020. At December 31, 2019, CenterState reported $17.1 billion in total assets, $12.0 billion in loans and $13.1 billion in deposits. Capital Management – Common Stock Repurchased In June 2019, the Board of Directors approved and reset the number of shares available to be repurchased to 2,000,000 common shares under the 2019 Stock Repurchase Program (“Repurchase Program”). As of December 31, 2019, we had repurchased shares of our common stock authorized by the Board of Directors in June 2019. In the first quarter of 2020, we repurchased an additional million. We may repurchase up to an additional The Company has evaluated subsequent events for accounting and disclosure purposes through the date the financial statements are issued and has determined that there is no additional disclosure necessary. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Nature of operations | Nature of Operations South State Corporation (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly owned subsidiary, South State Bank (the “Bank”). The Bank operates South State Advisory, Inc. (formerly First Southeast 401k Fiduciaries, Inc.), a wholly-owned registered investment advisor. We merged Minis & Co., Inc., another registered investment advisor that was wholly-owned by the Bank, with and into South State Advisory, Inc. effective January 1, 2019. We will continue to use the name Minis & Company as a Doing Business As (DBA) going forward. The Bank provides general banking services within million of trust preferred securities, including: SCBT Capital Trust I at $12.0 million; SCBT Capital Trust II at $8.0 million; SCBT Capital Trust III at $20.0 million; TSB Statutory Trust I at $3.0 million; SAVB Capital Trust I at $6.0 million; SAVB Capital Trust II at $4.0 million; Southeastern Bank Financial Statutory Trust I at $10.0 million; Southeastern Bank Financial Statutory Trust II at $10.0 million; Provident Community Bancshares Capital Trust I at $4.0 million; FCRV Statutory Trust I at $5.0 million; Community Capital Statutory Trust I at $10.0 million; CSBC Statutory Trust I at $15.0 million and Provident Community Bancshares Capital Trust II at $8.0 million. Unless otherwise mentioned or unless the context requires otherwise, references herein to "South State," the "Company" "we," "us," "our" or similar references mean South State Corporation and its consolidated subsidiary. References to the “Bank” means South State Bank, a South Carolina banking corporation. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of the Company and other entities in which it has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. Assets held by the Company in trust are not assets of the Company and are not included in the accompanying consolidated financial statements. |
Segments | Segments The Company, through its subsidiary, provides a broad range of financial services to individuals and companies in South Carolina, North Carolina, Georgia and Virginia. These services include demand, time and savings deposits; lending and credit card servicing; ATM processing; mortgage banking services; and wealth management and trust services. While the Company’s decision makers monitor the revenue streams of the various financial products and services, operations are managed and financial performance is evaluated on an organization-wide basis. Accordingly, the Company’s banking and finance operations are not considered by management to constitute more than one reportable operating segment. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, fair value of financial instruments, fair values of assets and liabilities acquired in business combinations, loss estimates related to loans and other real estate acquired, evaluating other-than-temporary impairment of investment securities, goodwill impairment tests and valuation of deferred tax assets In connection with the determination of the allowance for loan losses, management has identified specific loans as well as adopted a policy of providing amounts for loan valuation purposes which are not identified with any specific loan but are derived from actual loss experience ratios, loan types, loan volume, economic conditions and industry standards. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, regulatory agencies, as an integral part of the examination process, periodically review the banking subsidiary’s allowance for loan losses. Such agencies may require additions to the allowance based on their judgments about information available to them at the time of their examination. |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company’s subsidiary grants agribusiness, commercial, and residential loans to customers throughout South Carolina, North Carolina, Virginia and Georgia. Although the subsidiary has a diversified loan portfolio, a substantial portion of their borrowers’ abilities to honor their contracts is dependent upon economic conditions within South Carolina, North Carolina, Virginia, Georgia and the surrounding regions. The Company considers concentrations of credit to exist when, pursuant to regulatory guidelines, the amounts loaned to a multiple number of borrowers engaged in similar business activities which would cause them to be similarly impacted by general economic conditions represents 25% of total risk-based capital, or $375.3 million at December 31, 2019. Based on this criteria, the Company had four such credit concentrations at December 31, 2019, including loans on hotels and motels of $574.6 million, loans to lessors of nonresidential buildings (except mini-warehouses) of $1.4 billion, loans on owner occupied office buildings of $380.5 million and loans to lessors of residential buildings (investment properties and multi-family) of $570.9 million. The risk for these loans and for all loans is managed collectively through the use of credit underwriting practices developed and updated over time. The loss estimate for these loans is determined using our standard ALLL methodology. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purpose of presentation in the consolidated statements of cash flows, cash and cash equivalents include cash on hand, cash items in process of collection, amounts due from banks, interest bearing deposits with banks, purchases of securities under agreements to resell, and federal funds sold. Due from bank balances are maintained at other financial institutions. Federal funds sold are generally purchased and sold for one-day periods, but may, from time to time, have longer terms. The Company enters from time to time into purchases of securities under agreements to resell substantially identical securities typically for the purpose of obtaining securities on a short-term basis for collateralizing certain customer deposit relationships. Securities purchased under agreements to resell during December 31, 2019 and 2018 consisted of U.S. government-sponsored entities and agency mortgage-backed securities. It is the Company’s policy to take possession of securities purchased under agreements to resell. The securities are delivered into the Company’s account maintained by a third- party custodian designated by the Company under a written custodial agreement that explicitly recognizes the Company’s interest in the securities. The Company monitors the market value of the underlying securities, including accrued interest, which collateralizes the related receivable on agreements to resell. Historically, these agreements were considered to be cash equivalents with maturities of three months or less. The Company held no securities under agreements to resell at December 31, 2019. |
Investment Securities | Investment Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and carried at amortized cost. Securities not classified as held to maturity, including equity securities with readily determinable fair values, are classified as “available for sale” and carried at fair value with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using methods approximating the interest method over the terms of the securities. Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. Gains and losses realized on sales of securities available for sale are determined using the specific identification method. The Company evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. In estimating OTTI losses, management considers: (1) the financial condition and near-term prospects of the issuer, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or for a debt security whether it is more-likely-than-not that the Company will be required to sell the debt security prior to recovering its fair value, and (5) the anticipated outlook for changes in the general level of interest rates. (see Note 3—Investment Securities). Other investments include stock acquired for regulatory purposes, investments in unconsolidated subsidiaries and other nonmarketable investment securities. Stock acquired for regulatory purposes include Federal Home Loan Bank of Atlanta (“FHLB”) stock. These securities do not have a readily determinable fair value because their ownership is restricted and they lack a market for trading. As a result, these securities are carried at cost and are periodically evaluated for impairment. Investments in unconsolidated subsidiaries represent a minority investment in SCBT Capital Trust I, SCBT Capital Trust II, SCBT Capital Trust III, TSB Statutory Trust I, SAVB Capital Trust I, SAVB Capital Trust II, Southeastern Bank Financial Statutory Trust I, Southeastern Bank Financial Statutory Trust II, Provident Community Bancshares Capital Trust I, FCRV Statutory Trust I, Community Capital Statutory Trust I, CSBC Statutory Trust I and Provident Community Bancshares Capital Trust II. These investments are recorded at cost and the Company receives quarterly dividend payments on these investments. Other nonmarketable investment securities consists of Business Development Corporation stock and stock in Banker’s Banks. These investments also do not have a readily determinable fair value because their ownership is restricted and they lack a market for trading. As a result, these securities are carried at cost and are periodically evaluated for impairment. |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale are carried at the estimated fair value in the aggregate. Estimated fair value is determined on the basis of existing forward commitments, or the current market value of similar loans. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Loans held-for-sale are sold to investors either under guaranteed delivery or with the best effort intent and ability to sell loans as long as they meet the underwriting standards of the potential investor. |
Loans | Loans Loans that management has originated and has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their unpaid principal balances, less unearned income and net of any deferred loan fees and costs. Unearned income on installment loans is recognized as income over the terms of the loans by methods that generally approximate the interest method. Interest on other loans is calculated by using the simple interest method on daily balances of the principal amount outstanding. We place non- acquired loans and acquired non-credit impaired loans on nonaccrual once reasonable doubt exists about the collectability of all principal and interest due. Generally, this occurs when principal or interest is 90 days or more past due, unless the loan is well secured and in the process of collection. A loan is considered impaired when, in management’s judgment, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines when loans become impaired through its normal loan administration and review functions. Loans identified as nonaccrual are potentially impaired loans. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired, provided that management expects to collect all amounts due, including interest accrued at the contractual interest rate for the period of delay. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Interest income recognition on non-acquired impaired loans is discontinued when the loans meet the criteria for nonaccrual status described above. Large groups of smaller balance homogeneous non-acquired loans are collectively evaluated for loss and a general reserve is established accordingly. Acquired credit impaired loans are initially recorded at a discount to recognize the difference in the fair value of the loans and the contractual balance. The discount includes a component to recognize the absolute difference between the contractual value and the amount expected to be collected (total cash flow) as well as a component to recognize the net present value of that future amount to be collected. The net present value component is accretable into income, and therefore generates a yield on all acquired credit impaired loans, regardless of past due status. Therefore, acquired credit impaired loans are considered to be accruing loans. Acquired credit impaired loans that are greater than 90 days past due are placed into the greater than 90 days past due and still accruing category when analyzing the aging status of the loan portfolio. See Note 4—Loans and Allowance for Loan Losses for further detail. |
Troubled Debt Restructurings ("TDRs") | Troubled Debt Restructurings (“TDRs”) The Bank designates loan modifications as TDRs when, for economic or legal reasons related to the borrower’s financial difficulties, it grants a concession to the borrower that it would not otherwise consider. Loans on nonaccrual status at the date of modification are initially classified as nonaccrual TDRs. Loans on accruing status at the date of modification are initially classified as accruing TDRs at the date of modification, if the note is reasonably assured of repayment and performance is in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the modification date if reasonable doubt exists as to the collection of interest or principal under the restructuring agreement. Nonaccrual TDRs are returned to accruing status when there is economic substance to the restructuring, there is well documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months). |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established for estimated loan losses through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general and specific reserves. The general reserves are determined, for loans not identified as impaired, by applying loss percentages to the portfolio that are based on historical loss experience and management’s evaluation and “risk grading” of the loan portfolio. Additionally, the general economic and business conditions affecting key lending areas, credit quality trends, collateral values, loan volumes and concentrations, seasoning of the loan portfolio, the findings of internal and external credit reviews and results from external bank regulatory examinations are included in this evaluation. The specific reserves are determined, for impaired loans, on a loan-by-loan basis based on management’s evaluation of the Company’s exposure for each credit, given the current payment status of the loan and the value of any underlying collateral. Management evaluates nonaccrual loans and TDRs regardless of accrual status to determine whether or not they are impaired. For such loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The Company requires updated appraisals on at least an annual basis for impaired loans that are collateral dependent. Generally, the need for specific reserve is evaluated on impaired loans, and once a specific reserve is established for a loan, a charge off of that amount occurs in the quarter subsequent to the establishment of the specific reserve. Although management uses available information to estimate losses on loans, because of uncertainties associated with local, regional, and national economic conditions, collateral values, and future cash flows on impaired loans, and subjection of the model to the review of regulatory authorities, it is reasonably possible that a material change could occur in the allowance for loan losses in the near term. However, the amount of the change that is reasonably possible cannot be estimated. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned (“OREO”), consisting of properties obtained through foreclosure or through a deed in lieu of foreclosure in satisfaction of loans and property originally acquired for further branch expansion (formerly classified as premises and equipment), is reported at the lower of cost or fair value, determined on the basis of current valuations obtained principally from independent sources, adjusted for estimated selling costs. At the time of foreclosure or initial possession of collateral, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the allowance for loan losses. Subsequent declines in the fair value of OREO below the new cost basis are recorded through valuation adjustments. Significant judgments and complex estimates are required in estimating the fair value of other real estate, and the period of time within which such estimates can be considered current is significantly shortened during periods of market volatility. In response to market conditions and other economic factors, management may utilize liquidation sales as part of its problem asset disposition strategy. As a result of the significant judgments required in estimating fair value and the variables involved in different methods of disposition, the net proceeds realized from sales transactions could differ significantly from the valuations used to determine the fair value of OREO. Management reviews the value of OREO each quarter and adjusts the values as appropriate. Revenue and expenses from OREO operations as well as gains or losses on sales and any subsequent adjustments to the value are recorded as OREO expense and loan related expense, a component of non-interest expense. |
Business Combinations and Method of Accounting for Loans Acquired | Business Combinations and Method of Accounting for Loans Acquired The Company accounts for its acquisitions under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations Fair Value Measurements and Disclosures Acquired credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality, found in FASB ASC Topic 310-30, Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality Loans acquired through business combinations that do not meet the specific criteria of FASB ASC Topic 310-30, but for which a discount is attributable at least in part to credit quality are generally accounted for under this guidance. As a result, related discounts are recognized subsequently through accretion based on the expected cash flow of the acquired loans. Certain acquired loans, such as lines of credit (consumer and commercial) and loans for which there was no discount attributable to credit are accounted for in accordance with FASB ASC Topic 310-20, where the discount is accreted through earnings based on estimated cash flows over the estimated life of the loan. Subsequent to the acquisition date, increases in cash flows expected to be received in excess of the Company’s initial estimates are reclassified from nonaccretable difference to accretable yield and are accreted into interest income on a level-yield basis over the remaining life of the loan. Decreases in cash flows expected to be collected are recognized as impairment through the provision for loan losses. Probable and significant increases in cash flows (in a loan pool where an allowance for acquired loan losses was previously recorded) reduces the remaining allowance for acquired loan losses before recalculating the amount of accretable yield percentage for the loan pool in accordance with ASC 310-30. |
Premises and Equipment | Land is carried at cost. Office equipment, furnishings, and buildings are carried at cost less accumulated depreciation computed principally on the declining-balance and straight-line methods over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line method over the shorter of the estimated useful lives of the improvements or the terms of the related leases including lease renewals only when the Company is reasonably assured of the aggregate term of the lease. Additions to premises and equipment and major replacements are added to the accounts at cost. Maintenance and repairs and minor replacements are charged to expense when incurred. Gains and losses on routine dispositions are reflected in current operations. |
Leases | Leases (Topic 842) and Method of Adoption On January 1, 2019, we adopted the requirements of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; ASU No. 2018-11, Targeted Improvements; and ASU No. 2019-01, Codification Improvements to Topic 842 Leases. The purpose of the update was to increase transparency and comparability between organizations that enter into lease agreements. The key difference between the previous guidance and the update is the recognition of a right-of-use asset (ROU) and lease liability on the statement of financial position for those leases previously classified as operating leases under the old guidance. Accounting Standards Codification (“ASC”) Topic 842 defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. In applying this standard, we reviewed our material contracts to determine if they included a lease by this new definition and did not identify any new leases. Our lease agreements in which ASC Topic 842 has been applied are primarily for real estate properties, including retail branch locations, operations and administration locations and stand-alone ATM locations. These leases have lease terms from greater than . Related to lease payment terms, some are fixed payments or based on a fixed annual increases while others are variable and the annual increases are based on market rates. We performed an analysis on equipment leases for the implementation of ASC Topic 842 and determined the number and dollar amount of our equipment leases was not material. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We chose the transition method of adoption provided by ASU 2018-11, Leases (Topic 842) – Targeted Improvements, where we initially apply the new lease standard at the effective date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption if applicable. Therefore, we applied this standard to all existing leases as of the adoption date of January 1, 2019, recording a ROU asset and a lease liability in an equal amount. We did not have a cumulative-effect adjustment to the opening balance of retained earnings. With this transition method, we did not have to restate comparative prior periods presented in the financial statements related to ASC Topic 842, but will present comparative prior periods disclosures using the previous accounting guidance for leases. This adoption method is considered a change in accounting principle requiring additional disclosure of the nature of and reason for the change, which is solely a result of the adoption of the required standard. ASC Topic 842 provides a package of practical expedients in applying the lease standard that had to be chosen at the date of adoption. We chose to elect this package of practical expedients. With this election, we do not have to reassess whether any expired or existing contracts are or contain a lease, do not have to reassess the classification of any expired or existing leases, do not have to separate lease and non-lease components and can account for both as a single lease component, and do not have to reassess initial direct costs or cash incentives for any existing leases due to immateriality. In addition, we chose not to apply ASC Topic 842 to short-term leases (leases with terms of 12 months or less) and not to record an underlying ROU asset or lease liability based on the uncertainty around the renewal of these leases. We will recognize lease expense for such leases on a straight-line basis over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We determined that we do not have any leases classified as finance leases and that all of our leases are operating leases. ROU assets and liabilities for operating leases are recognized at commencement date based on present value of lease payments not yet paid, discounted using the discount rate for the lease at the lease commencement date over the lease term. For operating leases, lease expense is determined by the sum of the lease payments to be recognized on a straight-line basis over the lease term. Based on the transition method that we chose to follow, the commencement date of the lease term for all existing leases is January 1, 2019. The lease term used for the calculation of the initial ROU asset and lease liability will include the initial lease term in addition to any renewal options or termination costs in the lease that we think are reasonably certain to be exercised or incurred. We received input from several levels of management and our corporate real estate department in determining which options were reasonably certain to be exercised. A discount rate is also needed in the calculation of the initial ROU assets and lease liability. ASC Topic 842 requires that the implicit rate within the lease agreement be used if available. If not available, we should use its incremental borrowing rate in effect at the time of the lease commencement date. We looked at the incremental borrowing rate from several of our borrowing sources to determine an average rate to be used in the calculation of the initial ROU asset and lease liability. We also considered the term of the borrowings as they relate to the terms of the leases. liability million at the commencement date of January 1, 2019. We did not have a cumulative-effect adjustment to the opening balance of retained earnings at commencement. As of December 31, 2019, we had ROU assets of million recorded within other liabilities on the balance sheet. The adoption of ASC Topic 842 did not have a material impact on our consolidated income statement. |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank owned life insurance (BOLI) are comprised of long-term life insurance contracts on the lives of certain current and past employees where the insurance policy benefits and ownership are retained by the employer. Its cash surrender value is an asset that the Company uses to partially offset the future cost of employee benefits. The cash value accumulation on BOLI is permanently tax deferred if the policy is held to the insured person’s death and certain other conditions are met. |
Intangible Assets | Intangible Assets Intangible assets consist of goodwill, core deposit intangibles, client list intangibles, and noncompetition agreement (“noncompete”) intangibles that result from the acquisition of other banks or branches from other financial institutions. Core deposit intangibles represent the value of long-term deposit relationships acquired in these transactions. Client list intangibles represent the value of long-term client relationships for the wealth and trust management business. Noncompete intangibles represent the value of key personnel relative to various competitive factors such as ability to compete, willingness or likelihood to compete, and feasibility based upon the competitive environment, and what the Bank could lose from competition. Goodwill represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. The goodwill impairment analysis is a two-step test. The first step, used to identify potential impairment, involves comparing the reporting unit’s estimated fair value to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill assigned to that reporting unit is considered not to be impaired. If the carrying value exceeds estimated fair value, there is an indication of potential impairment and the second step is performed to measure the amount of impairment of goodwill assigned to that reporting unit. If required, the second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination, by measuring the excess of the estimated fair value of the reporting unit, as determined in the first step, over the aggregate estimated fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. Management has determined that the Company has two reporting units. The Company evaluated the carrying value of goodwill as of April 30, 2019, its annual test date, and determined that no impairment charge was necessary. Our stock price has historically traded above its book value and tangible book value. Based on the updated analysis of goodwill as of April 30, 2019 and the fact that our stock price has traded above book value during the third and fourth quarter of 2019, we believe there is no impairment of goodwill as of December 31, 2019. Should our future earnings and cash flows decline, discount rates increase, and/or the market value of our stock decreases, an impairment charge to goodwill and other intangible assets may be required. Core deposit intangibles, included in core deposit and other intangibles, are amortized over the estimated useful lives of the deposit accounts acquired (generally 10 Noncompete intangibles, included in core deposit and other intangibles are amortized over the life of the underlying noncompete agreements (generally 2 Client list intangibles, included in core deposit and other intangibles, are amortized over the estimated useful lives of the client lists acquired (generally 15 years) on the straight-line method. The estimated useful lives are periodically reviewed for reasonableness. |
Mortgage Servicing Rights | Mortgage Servicing Rights The Company has a mortgage loan servicing portfolio with related mortgage servicing rights. Mortgage servicing rights (“MSRs”) represent the present value of the future net servicing fees from servicing mortgage loans. Servicing assets and servicing liabilities must be initially measured at fair value, if practicable. For subsequent measurements, an entity can choose to measure servicing assets and liabilities either based on fair value or lower of cost or market. The Company uses the fair value measurement option for MSRs. The methodology used to determine the fair value of MSRs is subjective and requires the development of a number of assumptions, including anticipated prepayments of loan principal. Fair value is determined by estimating the present value of the asset’s future cash flows utilizing estimated market-based prepayment rates and discount rates, interest rates and other economic factors and assumptions validated through comparison to trade information, industry surveys and with the use of independent third party appraisals. Risks inherent in the MSRs valuation include higher than expected prepayment rates and/or delayed receipt of cash flows. The value of MSRs is significantly affected by mortgage interest rates available in the marketplace, which influence mortgage loan prepayment speeds. In general, during periods of declining interest rates, the value of mortgage servicing rights declines due to increasing prepayments attributable to increased mortgage refinance activity. Conversely, during periods of rising interest rates, the value of servicing rights generally increases due to reduced refinance activity. MSRs are carried at fair value with changes in fair value recorded as a component of mortgage banking income each period in the Consolidated Statements of Income. The Company also uses derivative instruments to mitigate the income statement effect of changes in fair value due to changes in valuation inputs and assumptions of its MSRs. |
Transfer of Financial Assets | Transfer of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over the transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The Company reviews all sales of loans by evaluating specific terms in the sales documents and believes that the criteria discussed above to qualify for sales treatment have been met as loans have been transferred for cash and the notes and mortgages for all loans in each sale are endorsed and assigned to the transferee. As stated in the commitment document, the Buyer has no recourse with these loans except in the case of fraud. In certain sales, mortgage servicing rights may be retained and in other programs potential loss exposure from the credit enhancement obligation may be retained, both of which are evaluated and appropriately measured at the date of sale. The Company packages most of the 30 year fixed rate conforming mortgage loans as securities to investors issued through Fannie Mae and sold to third-party investors or sells them to satisfy cash forward mandatory commitments to Fannie Mae. The Company records loan securitizations or cash forwards as a sale when the transferred loans are legally isolated from its creditors and the accounting criteria for a sale are met. Gains or losses recorded on loan securitizations and cash forwards depend in part on the net carrying amount of the loans sold, which is allocated between the loans sold and retained interests based on their relative fair values at the date of sale. The Company generally retains mortgage servicing rights on residential mortgage loans sold in the secondary market. Loans transferred to “held-for-sale” with the intention of disposal through a bulk loan sale will be sold with servicing released. Since quoted market prices are not typically available, the fair value of retained interests is estimated through the services of a third-party service provider to determine the net present value of expected future cash flows. Such models incorporate management’s best estimates of key variables, such as prepayment speeds and discount rates that would be used by market participants and are appropriate for the risks involved. Gains and losses incurred on loans sold to third-party investors are included in mortgage banking income in the Consolidated Statements of Income. |
Revenue from Contracts with Customers (Topic 606) and Method of Adoption | Revenue from Contracts with Customers (Topic 606) and Method of Adoption On January 1, 2018, we adopted the requirements of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (“ASU Topic 606”). The majority of our revenue is derived primarily from interest income from receivables (loans) and securities. Other revenues are derived from fees received in connection with deposit accounts, mortgage banking activities including gains from the sale of loans and loan origination fees, and trust and investment advisory services. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASU Topic 606 using the retrospective transition approach which requires restatement of prior periods. We selected this method even though there were no material changes in the timing of revenue recognition due to the fact that ASU Topic 606 requires us to report network costs associated with debit card and ATM transactions netted against the related fees from such transactions. Previously, such network costs were reported as a component of other noninterest expense. We did restate prior periods for this reclassification. For years 2019, 2018, and 2017, gross interchange and debit card transaction fees totaled million, respectively. On a net basis we reported million, respectively, as interchange and debit card transactions fees in the accompanying Consolidated Statements of Income as noninterest income for the years ended December 31, 2019, 2018, and 2017. This adoption method is considered a change in accounting principle requiring additional disclosure of the nature of and reason for the change, which is solely a result of the adoption of the required standard. When applying the retrospective approach under ASU Topic 606, the Company has elected, as a practical expedient, to apply the revenue standard only to contracts that are not completed as of January 1, 2018. A completed contract is considered to be a contract for which all (or substantially all) of the revenue was recognized in accordance with revenue guidance that was in effect before January 1, 2018. There were no uncompleted contracts as of January 1, 2018 for which application of the new standard required an adjustment to retained earnings. The following disclosures related to ASU Topic 606 involve income derived from contracts with customers. Within the scope of ASU Topic 606, we maintain contracts to provide services, primarily for investment advisory and/or custody of assets. Through our wholly owned subsidiaries, the Bank, and South State Advisory, Inc., we contract with our customers to perform IRA, Trust, and/or Custody and Agency advisory services. million for the years ended December 31, 2019 and 2018. Due to the nature of our relationship with the customers that we provide services, we do not incur costs to obtain contracts and there are no material incremental costs to fulfill these contracts that should be capitalized. Disaggregation of Revenue - million for the years ended December 31, 2019 and 2018. Total revenue derived from contracts in which services are transferred over time was are provided to the customers. Economic factors impacting the customers could affect the nature, amount, and timing of these cash flows, as unfavorable economic conditions could impair the customers’ ability to provide payment for services. This risk is mitigated as we generally deduct payments from customers’ accounts as services are rendered. Contract Balances - The timing of revenue recognition, billings, and cash collections results in billed accounts receivable on our balance sheet. Most contracts call for payment by a charge or deduction to the respective customer account but there are some that require a receipt of payment from the customer. For fee per transaction contracts, the customers are billed as the transactions are processed. For hourly rate and monthly service contracts related to trust and some investment revenues, the customers are billed monthly (generally as a percentage basis point of the market value of the investment account). In some cases, specific to South State Advisory, Inc., customers are billed in advance for quarterly services to be performed based on the past quarter’s average account balance. These do create contract liabilities or deferred revenue, as the customers pay in advance for service. Neither the contract liabilities nor the accounts receivables balances are material to the Company’s balance sheet. Performance Obligations - A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASU Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The performance obligations for these contracts are satisfied as the service is provided to the customer (either over time or at a point in time). The payment terms of the contracts are typically based on a basis point percentage of the investment account market value, fee per hour of service, or fee for service incurred. There are no significant financing components in the contracts. Excluding deposit services revenues which are mostly billed at a point in time as a fee for services incurred, all other contracts within the scope of ASU Topic 606 contain variable consideration in that fees earned are derived from market values of accounts or from hours worked for services performed which determines the amount of consideration to which we are entitled. The variability is resolved when the hours are incurred or services are provided. The contracts do not include obligations for returns, refunds, or warranties. The contracts are specific to the amounts owed to the Company for services performed during a period should the contracts be terminated. Significant Judgments - Revenue is recognized as services are billed to the customers. Variable consideration does exist for contracts related to our trust and investment services as revenues are based on market values and services performed. We have adopted the right-to-invoice practical expedient for trust management contracts through South State Bank which we contract with our customers to perform IRA, Trust, and/or Custody services. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as they are incurred and advertising communication costs the first time the advertising takes place. The Company may establish accruals for anticipated advertising expenses within the course of a fiscal year. |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as (1) unrealized gains and losses on available-for-sale securities (2) unrealized gains and losses on effective portions of derivative financial instruments accounted for as cash flow hedges and (3) net change in unrecognized amounts related to pension and post-retirement benefits, are reported as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of total comprehensive income (see Consolidated Statements of Comprehensive Income on page F-9). |
Employee Benefit Plans | Employee Benefit Plans The Company’s defined benefit pension and other post retirement plans are accounted for in accordance with FASB ASC 715, Compensation—Retirement Benefits The Employee Stock Purchase Plan (“ESPP”) allows for a look-back option which establishes the purchase price as an amount based on the lesser of the stock’s market price at the grant date or its market price at the exercise (or purchase) date. For the shares issued in exchange for employee services under the plan, the Company accounts for the plan under the FASB ASC 718, Compensation—Stock Compensation |
Income Taxes | Income Taxes Income taxes are provided for the tax effects of the transactions reported in the accompanying consolidated financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the tax basis and financial statement basis of gains on acquisitions, available-for-sale securities, allowance for loan losses, write downs of OREO properties, accumulated depreciation, net operating loss carryforwards, accretion income, deferred compensation, intangible assets, mortgage servicing rights, and pension plan and post- retirement benefits. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred tax assets and liabilities are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. The Company recognizes interest and penalties accrued relative to unrecognized tax benefits in its respective federal or state income tax accounts. As of December 31, 2019 and 2018, there were no material accruals for uncertain tax positions. The Company and its subsidiaries file a consolidated federal income tax return. Additionally, income tax returns are filed by the Company or its subsidiaries in the state of South Carolina, Georgia, North Carolina, Florida, Virginia, Alabama, and Mississippi. Generally, the Company’s federal and state income tax returns are no longer subject to examination by taxing authorities for years prior to 2016. |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) represents income available to common shareholders divided by the weighted-average number of shares outstanding during the year. Diluted earnings per share reflects additional shares that would have been outstanding if dilutive potential shares had been issued. Potential shares that may be issued by the Company relate solely to outstanding stock options, restricted stock and restricted stock units (non-vested shares), and warrants, and are determined using the treasury stock method. Under the treasury stock method, the number of incremental shares is determined by assuming the issuance of stock for the outstanding stock options and warrants, reduced by the number of shares assumed to be repurchased from the issuance proceeds, using the average market price for the year of the Company’s stock. Weighted-average shares for the basic and diluted EPS calculations have been reduced by the average number of unvested restricted shares. |
Derivative Financial Instruments | Derivative Financial Instruments The Company’s interest rate risk management strategy incorporates the use of a derivative financial instrument, specifically an interest rate swap, to essentially convert a portion of its variable- rate debt to a fixed rate. Cash flows related to variable-rate debt will fluctuate with changes in an underlying rate index. When effectively hedged, the increases or decreases in cash flows related to the variable- rate debt will generally be offset by changes in cash flows of the derivative instrument designated as a hedge. This strategy is referred to as a cash flow hedge. For derivatives designated as hedging exposure to variable cash flows of a forecasted transaction (cash flow hedge), the derivative’s entire gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings or when the hedge is terminated. For derivatives that are not designated as hedging instruments, changes in the fair value of the derivatives are recognized in earnings immediately. The Company also maintains one loan swap which is accounted for as a fair value hedge. This derivative protects the company from interest rate risk caused by changes in the LIBOR curve in relation to a certain designated fixed rate loan. This fair value hedge converts the fixed rate to a floating rate (see Note 27 – Derivative Financial Instruments). The Company’s risk management strategy for its mortgage banking activities incorporates derivative instruments used to hedge both the value of the mortgage servicing rights and the mortgage pipeline. These derivative instruments are not designated as hedges and are not speculative in nature. The derivative instruments that are used to hedge the value of the mortgage servicing rights include financial forwards, futures contracts, and options written and purchased. When-issued securities and mandatory cash forward trades are typically used to hedge the mortgage pipeline. These instruments derive their cash flows, and therefore their values, by reference to an underlying instrument, index or referenced interest rate. The Company’s risk management strategy also incorporates the use of interest rate swap contracts that help in managing interest rate risk within the loan portfolio and foreign currency exchange. These derivatives are not designated as hedges and are not speculative, and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings (See Note 27 – Derivative Financial Instruments). By using derivative instruments, the Company is exposed to credit and market risk. If the counterparty fails to perform, credit risk is equal to the fair value gain in a derivative. When the fair value of a derivative contract is positive, this situation generally indicates that the counterparty is obligated to pay the Company, and, therefore, creates a repayment risk for the Company. When the fair value of a derivative contract is negative, the Company is obligated to pay the counterparty and, therefore, has no repayment risk. The Company minimizes the credit risk in derivative instruments by entering into transactions with high-quality counterparties that are reviewed periodically by the Company. The Company’s derivative activities are monitored by its Asset-Liability Management Committee as part of that committee’s oversight of the Company’s asset/liability and treasury functions. The Company’s Asset-Liability Management Committee is responsible for implementing various hedging strategies that are developed through its analysis of data from financial simulation models and other internal and industry sources. The resulting hedging strategies are then incorporated into the overall interest-rate risk management process. The Company recognizes the fair value of derivatives as assets or liabilities in the financial statements. The accounting for the changes in the fair value of a derivative depends on the intended use of the derivative instrument at inception. The change in fair value of the effective portion of cash flow hedges is accounted for in other comprehensive income rather than net income. Changes in fair value of derivative instruments that are not intended as a hedge are accounted for in the net income in the period of the change (see Note 27—Derivative Financial Instruments for further disclosure). |
Reclassification | Reclassification Certain amounts previously reported have been reclassified to conform to the current year’s presentation. Such reclassifications had no effect on net income and shareholders’ equity. |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events for accounting and disclosure purposes through the date the financial statements are issued. See Note 30- Subsequent Events for further information. |
Recent Accounting and Regulatory Pronouncements | Recent Accounting and Regulatory Pronouncements Accounting Standards Adopted in 2019 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASC Topic 842 related to leases. ASC Topic 842 applies a right-of-use, which we refer to herein as ROU, model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. For leases with a term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize an ROU asset or lease liability. At inception, lessees must classify all leases as either finance or operating based on five criteria. Balance sheet recognition of finance and operating leases is similar, but the pattern of expense recognition in the income statement, as well as the effect on the statement of cash flows, differs depending on the lease classification. In July 2018, ASU 2018-11 - Targeted Improvements - Leases (Topic 842) (“ASU 2018-11”) was issued which provided targeted improvements related to ASC Topic 842. ASU 2018-11 updates the new lease standard ASC Topic 842 by providing another transition method in addition to the existing transition method by allowing entities to initially apply the new leases standard at the adoption date instead of at the beginning of the earliest period presented in the financial statements as required in the original pronouncement. ASU 2018-11 also provides updated guidance for lessors related to separating lease and nonlease components in a contract and allocating the consideration in the contract to the separate components. In December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors (“ASU 2018-20”) . ASU 2018-20 updates the new lease standard ASC Topic 842 by addressing several issues related to lessors which should reduce lessors’ implementation and ongoing costs related to the new lease standard. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements (“ASU 2019-01”) . ASU 2019-01 provides clarification on several issues related to ASC Topic 842. None of these issues had a material effect on our financial statements. For public business entities, the amendments in ASU 2016-02, ASU 2018-11, ASU 2018-20 and ASU 2019-01 are effective for interim and annual periods beginning after December 15, 2018. In transition, lessees and lessors have the choice to recognize and measure leases at the beginning of the earliest period presented in financials using a modified retrospective approach or to allow the entity to recognize and measure leases as of the adoption date and not in comparative periods. We chose the option to recognize and measure leases as of the adoption date and not in comparative periods. See Note 1 – Summary of Significant Accounting Policies and Note 20 – Lease Commitments for further discussion around the adoption of these standards related to leases. On January 1, 2019, we recorded a ROU asset and a lease liability In October 2018, the FASB issued ASU No. 2018-16, Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (Derivatives and Hedging - Topic 815) (“ASU 2018-16”) . The amendments in this ASU permit the OIS rate based on SOFR as a U.S. benchmark interest rate. Including the OIS rate based on SOFR as an eligible benchmark interest rate during the early stages of the marketplace transition provides sufficient lead time for entities to prepare for changes to interest rate risk hedging strategies for both risk management and hedge accounting purposes. The guidance is effective for public companies for annual periods beginning on or after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption. This guidance became effective on January 1, 2019 and did not have a material impact to our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (Subtopic 350-40) (“ASU 2018-15”) . This ASU clarifies certain aspects of ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement affect the accounting for the service element of a hosting arrangement that is a service contract. An entity would expense the capitalized implementation costs related to a hosting arrangement that is a service contract over the hosting arrangement’s term, which comprises the arrangement’s noncancelable term and any renewal options whose exercise is reasonably certain. The expense would be presented in the same line item in the statement of income as that in which the fee associated with the hosting arrangement is presented. For public business entities, the amendments in ASU 2018-15 are effective for interim and annual periods beginning after December 15, 2019 and an entity has the option of using either a retrospective or prospective transition method. Early adoption is permitted. We early adopted this standard as of January 1, 2019, but it did not have a material impact on our consolidated financial statements. There were was related to a front capture software product for administering customer banking transactions at branch locations. These costs are being held in a suspense account classified as other assets on the balance sheet until the project is complete when they will then begin to be depreciated. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). ASU 2017-12 amends ASU 2018-16 to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. These amendments will improve the transparency of information about an entity’s risk management activities and simplify the application of hedge accounting. The guidance is effective for public companies for annual periods beginning on or after December 15, 2018 and interim periods within those fiscal years. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption. This guidance became effective on January 1, 2019 and we determined that the implementation of this standard did not have a material impact to our consolidated financial statements. Receivables-Nonrefundable Fees and Other Cost (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities; ASU 2017-08 shortens the amortization period of the premium for certain callable debt securities, from the contractual maturity date to the earliest call date. The amendments do not require an accounting change for securities held at a discount; an entity will continue to amortize to the contractual maturity date the discount related to callable debt securities. The amendments apply to the amortization of premiums on callable debt securities with explicit, noncontingent call features that are callable at fixed prices on preset dates. For public business entities, ASU 2017-08 is effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For entities other than public business entities, the amendments are effective in fiscal years beginning after December 15, 2019 and in interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including in an interim period. The amendments should be applied on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the amendments are adopted. Issued But Not Yet Adopted Accounting Standards In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying the amending existing guidance. This guidance is effective for interim and annual reporting periods beginning after December 15, 2020. Early adoption is permitted. The amendments in this update related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments related to franchise taxes that are partially based on income should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments should be applied on a prospective basis. We do not believe this update will have a material impact on our consolidated financial statements. In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815. This update, related to ASU 2016-01, clarifies certain aspects brought to the Account Standards Board attention by stakeholders related to these ASUs, but does not change the core principles of these standards. The areas of improvement clarified in this update are related to 1) Expected recoveries for purchased financial assets with credit deterioration, 2) Transition relief for troubled debt restructurings, 3) Disclosures related to accrued interest receivables, 4) Financial assets secured by collateral maintenance provisions and 5) Conforming amendment to Subtopic 805-20. This clarifications will be adopted in the first quarter of 2020 when the overall standard will be adopted. This clarification related to ASU 2016-13 is still being evaluated as are the effects of the overall standard on our consolidated financial statements. In April 2019, the FASB issued ASU No. 2019-05, Targeted Transition Relief (Topic 326 – Financial Instruments-Credit Losses). 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the overall guidance is adopted. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. This update related to ASU 2016-01, ASU 2017-12 and ASU 2016-13 clarifies certain aspects brought to the Account Standards Board attention by stakeholders related to these ASUs, but does not change the core principles of these standards. The clarifications related to ASU 2016-01 and 2017-12 were be adopted the second quarter of 2019 since these standards have already been adopted. The clarifications related to ASU 2016-13 will be adopted in the first quarter of 2020 when the overall standard will be adopted. The clarification related to ASU 2016-01 and ASU 2017-12 did not have a material impact on our consolidated financial statements. The clarification related to ASU 2016-13 is still being evaluated as are the effects of the overall standard on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans (Subtopic 715-20) (“ASU 2018-14”) . ASU 2018-14 amends ASC 715-20 to add, remove, and clarify disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. For public business entities, ASU 2018-14 is effective for fiscal years ending after December 15, 2020 and requires entities to apply the amendment on a retrospective basis. Early adoption is permitted. At this point in time, we do not expect that this guidance will have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820) (“ASU 2018-13”) . ASU 2018-13 removes, modifies, and adds certain disclosure requirements in ASC 820 related to Fair Value Measurement on the basis of the concepts in the FASB Concepts Statement Conceptual Framework for Financial Reporting — Chapter 8: Notes to Financial Statements . ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted upon issuance of this ASU, including in any interim period for which financial statements have not yet been issued or made available for issuance. Entities making this election are permitted to early adopt the eliminated or modified disclosure requirements and delay the adoption of all the new disclosure requirements until their effective date. The ASU requires application of the prospective method of transition (for only the most recent interim or annual period presented in the initial fiscal year of adoption) to the new disclosure requirement additions. The ASU also requires prospective application to any modifications to disclosures made because of the change to the requirements for the narrative description of measurement uncertainty. The effects of all other amendments made by the ASU must be applied retrospectively to all periods presented. We do not believe this will have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangible-Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in today’s two-step impairment test under ASC Topic 350 and eliminating Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The guidance is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those years. The amendments should be adopted prospectively and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not believe it will have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13 , Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance for credit losses (“ACL”) that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in earlier recognition of credit losses for loans, investment securities portfolio, and purchased financial assets with credit deterioration. We do not expect this standard to have a material impact on our investment securities portfolio at implementation. ASU 2016-13 also will require enhanced disclosures. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We have adopted the new standard as of January 1, 2020. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. A cross-functional working group comprised of individuals from credit administration, risk management, accounting and finance, information technology, among others were in place to implement and develop the data, forecast, processes, and portfolio segmentation that are used in the models that estimate the expected credit loss for our loan segments. Estimating the ACL involves a high degree of management judgment and our process for determining an appropriate ACL may result in a range of estimates for expected credit losses. Our ACL will be management’s best estimate within the range of expected credit losses. We have determined a baseline model result for each loan segment based upon our of historical losses. All credit models and the aggregator model have been validated and approved for use by the Model Risk Management Committee of the Company. Management should consider the need to qualitatively adjust expected credit loss estimates for information not already captured in the models developed to estimate losses. As a result, Management has developed a qualitative framework and has considered certain qualitative factors that are relevant to the estimate as of January 1, 2020. The Company has implemented a third party vendor solution (aggregator model) to assist us in aggregating the results of the credit models and provide us with macroeconomic forecasts for our loan portfolio markets. This standard requires estimating projected lifetime credit losses based on information about past events, including historical experience, current conditions, reasonable and supportable macro-economic forecast assumptions and certain management judgements over the life of the loans. Under our baseline scenario, we currently estimate that our allowance under CECL will be in a range of million. The estimated decline in equity, net of tax, will range from million. This estimate is influenced by the composition, characteristics and quality of our loan portfolio, as well as the economic conditions and forecasts as of each reporting period. These economic conditions and forecasts could be significantly different in future periods. The impact of the change in the allowance on our results of operations in a provision for credit losses will depend on the current period net charge-offs, level of loan originations, and change in mix of the loan portfolio. |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Mergers and Acquisitions | |
Schedule of proforma information | SBFC PSC Actual since Actual since Acquisition Acquisition Pro Forma (January 3, 2017 through (November 30, 2017 through Year Ended (Dollars in thousands) December 31, 2017) December 31, 2017) December 31, 2017 Total revenues (net interest income plus noninterest income) $ 67,823 $ 14,052 $ 690,716 Net adjusted income available to the common shareholder $ 25,790 $ 4,829 $ 146,821 |
Park Sterling Corporation | |
Mergers and Acquisitions | |
Schedule of assets acquired, liabilities assumed, and fair value of total consideration transferred | The PSC transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date. Initial Subsequent As Recorded Fair Value Fair Value As Recorded by (Dollars in thousands) by Park Adjustments Adjustments the Company Assets Cash and cash equivalents $ 116,454 $ — $ — $ 116,454 Investment securities 461,261 1,444 (a) 219 (a) 462,924 Loans held for sale 2,200 68,686 (b) (4) (b) 70,882 Loans, net of allowance and mark 2,346,612 (95,878) (c) (9,408) (c) 2,241,326 Premises and equipment 61,059 (4,882) (d) (387) (d) 55,790 Intangible assets 73,090 (46,915) (e) 3,321 (e) 29,496 OREO and repossessed assets 2,549 (429) (f) 210 (f) 2,330 Bank owned life insurance 72,703 — — 72,703 Deferred tax asset 17,963 11,596 (g) 2,123 (g) 31,682 Other assets 21,595 (476) (h) — 21,119 Total assets $ 3,175,486 $ (66,854) $ (3,926) $ 3,104,706 Liabilities Deposits: Noninterest-bearing $ 561,874 $ — $ — $ 561,874 Interest-bearing 1,886,810 2,692 (i) (612) (i) 1,888,890 Total deposits 2,448,684 2,692 (612) 2,450,764 Federal funds purchased and securities sold under agreements to repurchase — — — — Other borrowings 329,249 11,689 (j) — 340,938 Other liabilities 24,179 2,131 (k) — 26,310 Total liabilities 2,802,112 16,512 (612) 2,818,012 Net identifiable assets acquired over (under) liabilities assumed 373,374 (83,366) (3,314) 286,694 Goodwill — 402,951 3,314 406,265 Net assets acquired over liabilities assumed $ 373,374 $ 319,585 $ — $ 692,959 Consideration: South State Corporation common shares issued 7,480,343 Purchase price per share of the SSB's common stock $ 92.05 SSB common stock issued ($688,566) and cash exchanged for fractional shares ($88) $ 688,654 Cash paid for stock option redemptions 4,305 Fair value of total consideration transferred $ 692,959 Explanation of fair value adjustments (a)—Adjustment reflects marking the securities portfolio to fair value as of the acquisition date. (b)—Adjustment reflects a reclass of $68.7 million by SSB of Shared National Credits (loans) from loans held for investment to loans held for sale. (c)—Adjustment reflects the fair value adjustments (discount) of $70.4 million based on the Company’s evaluation of the acquired loan portfolio. This amount excludes the allowance for loan losses (“ALLL”) and fair value adjustment (discount) of (d)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired premises and equipment. (e)—Adjustment reflects the recording of a 1.66% Core Deposit Intangible (“CDI”) on the acquired deposit accounts that totaled $29.5 million offset by a write-off of $73.1 million of existing goodwill and CDI acquired from PSC. (f)—Adjustment reflects the fair value adjustments to other real estate owned (“OREO”) based on the Company’s evaluation of the acquired OREO portfolio. (g)—Adjustment to record deferred tax asset related to the fair value adjustments and an adjustment from the PSC tax rate to the SSB tax rate. (h)—Adjustment reflects the write-off of accrued interest receivable and along with certain prepaid expenses. (i)—Adjustment reflects the premium for fixed maturity time deposits of $2.3 million offset by the write-off of existing fair value marks of $253,000 acquired from PSC. (j)—Adjustment reflects the fair value adjustment (discount) of $2.4 million on PSC’s Trust Preferred Securities offset by the write-off of the existing PSC discount on its senior debt and TRUPs of $14.0 million. (k)—Adjustment reflects the fair value adjustments to employee benefit plans of $1.5 million along with other adjustments of miscellaneous liabilities. |
Southeastern Bank Financial | |
Mergers and Acquisitions | |
Schedule of assets acquired, liabilities assumed, and fair value of total consideration transferred | The following table presents the assets acquired and liabilities assumed as of January 3, 2017 at their initial and subsequent fair value estimates, as recorded by the Company. The fair value estimates were subject to refinement for up to one year after the closing date of the acquisition for new information obtained about facts and circumstances that existed at the acquisition date. Initial Subsequent As Recorded Fair Value Fair Value As Recorded by (Dollars in thousands) by SBFC Adjustments Adjustments the Company Assets Cash and cash equivalents $ 72,043 $ — $ — $ 72,043 Investment securities 591,824 (1,770) (a) — 590,054 Loans held for sale 13,652 — — 13,652 Loans, net of allowance and mark 1,060,618 (10,668) (b) — 1,049,950 Premises and equipment 25,419 (2,212) (c) 870 (c) 24,077 Intangible assets 140 17,980 (d) — 18,120 OREO and repossessed assets 580 (30) (e) (100) (e) 450 Bank owned life insurance 44,513 — — 44,513 Deferred tax asset 16,247 (687) (f) 515 (f) 16,075 Other assets 7,545 (482) (g) — 7,063 Total assets $ 1,832,581 $ 2,131 $ 1,285 $ 1,835,997 Liabilities Deposits: Noninterest-bearing $ 262,967 $ — $ — $ 262,967 Interest-bearing 1,257,953 — — 1,257,953 Total deposits 1,520,920 — — 1,520,920 Federal funds purchased and securities sold under agreements to repurchase 1,014 — — 1,014 Other borrowings 110,620 (1,120) (h) — 109,500 Other liabilities 19,980 5,553 (i) 2,210 (i) 27,743 Total liabilities 1,652,534 4,433 2,210 1,659,177 Net identifiable assets acquired over (under) liabilities assumed 180,047 (2,302) (925) 176,820 Goodwill — 257,370 925 258,295 Net assets acquired over liabilities assumed $ 180,047 $ 255,068 $ — $ 435,115 Consideration: South State Corporation common shares issued 4,978,338 Purchase price per share of the Company's common stock $ 87.30 Company common stock issued ($434,609) and cash exchanged for fractional shares ($16) $ 434,625 Cash paid for stock option redemptions 490 Fair value of total consideration transferred $ 435,115 Explanation of fair value adjustments (a)—Adjustment reflects marking the securities portfolio to fair value as of the acquisition date. (b)—Adjustment reflects the fair value adjustments of $30.7 million based on the Company’s evaluation of the acquired loan portfolio and excludes the allowance for loan losses (“ALLL”) of $20.1 million recorded by SBFC. (c)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired premises and equipment. (d)—Adjustment reflects the recording of the core deposit intangible on the acquired deposit accounts that totaled $18.1 million. (e)—Adjustment reflects the fair value adjustments to other real estate owned (“OREO”) and repossessed assets based on the Company’s evaluation of the acquired OREO and repossessed assets portfolio. (f)—Adjustment to record deferred tax asset related to the fair value adjustments. (g)—Adjustment reflects uncollectible portion of accrued interest receivable and loan fees receivable along with the write-off of certain prepaid expenses. (h)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of other borrowings of Trust Preferred Securities with a discount of $2.1 million, netted with premium on certain Federal Home Loan Bank (“FHLB “) advances of $1.0 million. (i)—Adjustment reflects the fair value adjustments to employee benefit plans of $8.3 million netted against an adjustment of other miscellaneous liabilities of $496,000. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investment Securities | |
Schedule of amortized cost and fair value of investment securities available for sale | Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value December 31, 2019: Government-sponsored entities debt* $ 25,356 $ 585 $ — $ 25,941 State and municipal obligations 204,150 5,029 (764) 208,415 Mortgage-backed securities** 1,711,257 14,209 (3,775) 1,721,691 $ 1,940,763 $ 19,823 $ (4,539) $ 1,956,047 December 31, 2018: Government-sponsored entities debt* $ 48,982 $ 21 $ (752) $ 48,251 State and municipal obligations 200,184 1,709 (1,125) 200,768 Mortgage-backed securities** 1,291,484 697 (24,133) 1,268,048 $ 1,540,650 $ 2,427 $ (26,010) $ 1,517,067 * The Company’s government-sponsored entities holdings are comprised of debt securities offered by Federal Home Loan Mortgage Corporation (“FHLMC”) or Freddie Mac, Federal National Mortgage Association (“FNMA”) or Fannie Mae, FHLB, and Federal Farm Credit Banks (“FFCB”). Also included in the Company’s government-sponsored entities are debt securities offered by the Small Business Administration (“SBA”), which have the full faith and credit backing of the United States Government. ** All of the mortgage-backed securities are issued by government-sponsored entities; there are no private-label holdings. |
Schedule of amortized cost and carrying value of other investment securities | Carrying (Dollars in thousands) Value December 31, 2019: Federal Home Loan Bank stock $ 43,044 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 2,517 $ 49,124 December 31, 2018: Federal Home Loan Bank stock $ 19,524 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 2,517 $ 25,604 |
Schedule of amortized cost and fair value of debt and equity securities by contractual maturity | Securities Available for Sale Amortized Fair (Dollars in thousands) Cost Value Due in one year or less $ 7,267 $ 7,315 Due after one year through five years 54,662 55,286 Due after five years through ten years 442,830 447,167 Due after ten years 1,436,004 1,446,279 $ 1,940,763 $ 1,956,047 |
Schedule of information with respect to sales of availableforsale securities | Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Securities Available for Sale: Sale proceeds $ 242,733 $ 73,054 $ 374,938 Gross realized gains $ 6,030 $ 31 $ 1,832 Gross realized losses (3,319) (686) (411) Net realized gain $ 2,711 $ (655) $ 1,421 |
Schedule of securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | Less Than Twelve Months Twelve Months or More Gross Gross Unrealized Fair Unrealized Fair (Dollars in thousands) Losses Value Losses Value December 31, 2019: Securities Available for Sale Government-sponsored entities debt $ — $ — $ — $ — State and municipal obligations 764 42,070 — — Mortgage-backed securities 2,422 461,658 1,353 141,982 $ 3,186 $ 503,728 $ 1,353 $ 141,982 December 31, 2018: Securities Available for Sale Government-sponsored entities debt $ 100 $ 10,571 $ 652 $ 32,959 State and municipal obligations 760 40,387 365 14,231 Mortgage-backed securities 5,182 405,055 18,951 755,223 $ 6,042 $ 456,013 $ 19,968 $ 802,413 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Allowance for Loan Losses | |
Schedule of changes in allowance for loan losses | Non-acquired Acquired Acquired Credit (Dollars in thousands) Loans Impaired Loans Impaired Loans Total Year Ended December 31, 2019: Balance at beginning of period $ 51,194 $ — $ 4,604 $ 55,798 Loans charged-off (6,917) (2,858) — (9,775) Recoveries of loans previously charged off 3,367 547 — 3,914 Net charge-offs (3,550) (2,311) — (5,861) Provision for loan losses charged to operations 9,283 2,311 1,183 12,777 Reduction due to loan removals — — (723) (723) Balance at end of period $ 56,927 $ — $ 5,064 $ 61,991 Year Ended December 31, 2018: Balance at beginning of period $ 43,448 $ — $ 4,627 $ 48,075 Loans charged-off (6,012) (2,214) — (8,226) Recoveries of loans previously charged off 2,995 305 — 3,300 Net charge-offs (3,017) (1,909) — (4,926) Provision for loan losses charged to operations 10,763 1,909 1,111 13,783 Reduction due to loan removals — — (1,134) (1,134) Balance at end of period $ 51,194 $ — $ 4,604 $ 55,798 Year Ended December 31, 2017: Balance at beginning of period $ 36,960 $ — $ 3,395 $ 40,355 Loans charged-off (5,149) (1,630) — (6,779) Recoveries of loans previously charged off 2,953 477 — 3,430 Net charge-offs (2,196) (1,153) — (3,349) Provision for loan losses charged to operations 8,684 1,153 2,053 11,890 Reduction due to loan removals — — (821) (821) Balance at end of period $ 43,448 $ — $ 4,627 $ 48,075 |
Summary of average investment in impaired loans and interest income recognized on impaired loans | Year Ended December 31, 2019 2018 2017 Average Average Average Investment in Interest Income Investment in Interest Income Investment in Interest Income (Dollars in thousands) Impaired Loans Recognized Impaired Loans Recognized Impaired Loans Recognized Commercial real estate: Construction and land development $ 36,556 $ 1,014 $ 40,571 $ 1,201 $ 23,132 $ 1,138 Commercial non-owner occupied 702 15 1,200 28 1,091 45 Commercial owner occupied 5,358 370 4,892 288 5,943 268 Consumer real estate: Consumer owner occupied 5,951 185 6,197 212 5,653 195 Home equity loans 2,644 138 2,919 126 2,343 113 Commercial and industrial 3,935 324 1,224 57 1,209 48 Other income producing property 2,448 84 3,005 155 2,755 171 Consumer 181 4 213 1 192 6 Total Impaired Loans $ 57,775 $ 2,134 $ 60,221 $ 2,068 $ 42,318 $ 1,984 |
Summary of information pertaining to nonaccrual loans by class | Unpaid Recorded Gross Contractual Investment Recorded Total Principal With No Investment Recorded Related (Dollars in thousands) Balance Allowance With Allowance Investment Allowance December 31, 2019 Commercial real estate: Construction and land development $ 35,577 $ 223 $ 34,978 $ 35,201 $ 617 Commercial non-owner occupied 385 368 11 379 — Commercial owner occupied 7,689 4,836 1,739 6,575 24 Consumer real estate: Consumer owner occupied 5,410 1,969 3,172 5,141 102 Home equity loans 2,605 1,184 1,277 2,461 132 Commercial and industrial 7,378 5,929 649 6,578 366 Other income producing property 2,423 415 1,609 2,024 50 Consumer 233 — 173 173 55 Total $ 61,700 $ 14,924 $ 43,608 $ 58,532 $ 1,346 December 31, 2018 Commercial real estate: Construction and land development $ 38,314 $ 339 $ 37,574 $ 37,913 $ 788 Commercial non-owner occupied 1,157 536 489 1,025 70 Commercial owner occupied 5,085 3,101 1,041 4,142 27 Consumer real estate: Consumer owner occupied 7,291 4,992 1,769 6,761 41 Home equity loans 2,953 1,129 1,697 2,826 142 Commercial and industrial 1,332 467 824 1,291 416 Other income producing property 3,117 150 2,722 2,872 142 Consumer 211 — 188 188 2 Total $ 59,460 $ 10,714 $ 46,304 $ 57,018 $ 1,628 |
Southeastern Bank Financial | |
Loans and Allowance for Loan Losses | |
Schedule of contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting carrying values | January 3, 2017 Loans Impaired (Dollars in thousands) at Acquisition Contractual principal and interest $ 78,963 Non-accretable difference (13,072) Cash flows expected to be collected 65,891 Accretable difference (4,910) Carrying value $ 60,981 |
Park Sterling Corporation | |
Loans and Allowance for Loan Losses | |
Schedule of contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting carrying values | The table below reflects refined contractual loan payments (principal and interest), estimates of the amounts not expected to be collected (non-accretable difference), accretable yield (interest income recognized over time), and the resulting fair values at the acquisition date for PSC (November 30, 2017) for loans accounted for using FASB ASC Topic 310-30. During the second quarter of 2018, the initial fair value of loans at acquisition were adjusted to reflect movement of loans between the ASC Topic 310-20 portfolio and the ASC Topic 310-30 portfolio and the movement in interest rates from the initial valuation. November 30, 2017 Loans Impaired (Dollars in thousands) at Acquisition Contractual principal and interest $ 113,584 Non-accretable difference (27,248) Cash flows expected to be collected 86,336 Accretable difference (7,369) Carrying value $ 78,967 |
Non-acquired loans | |
Loans and Allowance for Loan Losses | |
Summary of loans | December 31, (Dollars in thousands) 2019 2018 Non-acquired loans: Commercial non-owner occupied real estate: Construction and land development $ 968,360 $ 841,445 Commercial non-owner occupied 1,811,138 1,415,551 Total commercial non-owner occupied real estate 2,779,498 2,256,996 Consumer real estate: Consumer owner occupied 2,118,839 1,936,265 Home equity loans 518,628 495,148 Total consumer real estate 2,637,467 2,431,413 Commercial owner occupied real estate 1,784,017 1,517,551 Commercial and industrial 1,280,859 1,054,952 Other income producing property 218,617 214,353 Consumer 538,481 448,664 Other loans 13,892 9,357 Total non-acquired loans 9,252,831 7,933,286 Less allowance for loan losses (56,927) (51,194) Non-acquired loans, net $ 9,195,904 $ 7,882,092 |
Schedule of changes in allowance for loan losses | Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing Other (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Loans Total Year Ended December 31, 2019: Allowance for loan losses: Balance at beginning of period $ 5,682 $ 8,754 $ 9,369 $ 11,913 $ 3,434 $ 7,454 $ 1,446 $ 3,101 $ 41 $ 51,194 Charge-offs (78) (3) (87) (50) (203) (622) (31) (5,843) — (6,917) Recoveries 1,016 76 174 213 265 351 94 1,178 — 3,367 Provision (benefit) (516) 1,872 1,125 520 (308) 1,156 (173) 5,511 96 9,283 Balance at end of period $ 6,104 $ 10,699 $ 10,581 $ 12,596 $ 3,188 $ 8,339 $ 1,336 $ 3,947 $ 137 $ 56,927 Loans individually evaluated for impairment $ 617 $ — $ 24 $ 102 $ 132 $ 366 $ 50 $ 55 $ — $ 1,346 Loans collectively evaluated for impairment $ 5,487 $ 10,699 $ 10,557 $ 12,494 $ 3,056 $ 7,973 $ 1,286 $ 3,892 $ 137 $ 55,581 Loans: Loans individually evaluated for impairment $ 35,201 $ 379 $ 6,575 $ 5,141 $ 2,461 $ 6,578 $ 2,024 $ 173 $ — $ 58,532 Loans collectively evaluated for impairment 933,159 1,810,759 1,777,442 2,113,698 516,167 1,274,281 216,593 538,308 13,892 9,194,299 Total non-acquired loans $ 968,360 $ 1,811,138 $ 1,784,017 $ 2,118,839 $ 518,628 $ 1,280,859 $ 218,617 $ 538,481 $ 13,892 $ 9,252,831 Year Ended December 31, 2018: Allowance for loan losses: Balance at beginning of period $ 5,921 $ 6,525 $ 8,128 $ 9,668 $ 3,250 $ 5,488 $ 1,375 $ 2,788 $ 305 $ 43,448 Charge-offs (76) — (659) (80) (215) (500) (2) (4,480) — (6,012) Recoveries 1,340 11 145 132 279 256 21 811 — 2,995 Provision (benefit) (1,503) 2,218 1,755 2,193 120 2,210 52 3,982 (264) 10,763 Balance at end of period $ 5,682 $ 8,754 $ 9,369 $ 11,913 $ 3,434 $ 7,454 $ 1,446 $ 3,101 $ 41 $ 51,194 Loans individually evaluated for impairment $ 788 $ 70 $ 27 $ 41 $ 142 $ 416 $ 142 $ 2 $ — $ 1,628 Loans collectively evaluated for impairment $ 4,894 $ 8,684 $ 9,342 $ 11,872 $ 3,292 $ 7,038 $ 1,304 $ 3,099 $ 41 $ 49,566 Loans: Loans individually evaluated for impairment $ 37,913 $ 1,025 $ 4,142 $ 6,761 $ 2,826 $ 1,291 $ 2,872 $ 188 $ — $ 57,018 Loans collectively evaluated for impairment 803,532 1,414,526 1,513,409 1,929,504 492,322 1,053,661 211,481 448,476 9,357 7,876,268 Total non-acquired loans $ 841,445 $ 1,415,551 $ 1,517,551 $ 1,936,265 $ 495,148 $ 1,054,952 $ 214,353 $ 448,664 $ 9,357 $ 7,933,286 Year Ended December 31, 2017: Allowance for loan losses: Balance at beginning of period $ 4,091 $ 4,980 $ 8,022 $ 7,820 $ 3,211 $ 4,842 $ 1,542 $ 2,350 $ 102 $ 36,960 Charge-offs (546) — — (185) (330) (776) (51) (3,261) — (5,149) Recoveries 968 132 220 306 210 343 85 689 — 2,953 Provision (benefit) 1,408 1,413 (114) 1,727 159 1,079 (201) 3,010 203 8,684 Balance at end of period $ 5,921 $ 6,525 $ 8,128 $ 9,668 $ 3,250 $ 5,488 $ 1,375 $ 2,788 $ 305 $ 43,448 Loans individually evaluated for impairment $ 1,063 $ 125 $ 64 $ 37 $ 135 $ 15 $ 178 $ 7 $ — $ 1,624 Loans collectively evaluated for impairment $ 4,858 $ 6,400 $ 8,064 $ 9,631 $ 3,115 $ 5,473 $ 1,197 $ 2,781 $ 305 $ 41,824 Loans: Loans individually evaluated for impairment $ 43,230 $ 1,375 $ 5,642 $ 5,632 $ 3,011 $ 1,156 $ 3,138 $ 239 $ — $ 63,423 Loans collectively evaluated for impairment 787,645 1,007,518 1,257,134 1,524,628 434,631 814,031 190,709 378,746 33,690 6,428,732 Total non-acquired loans $ 830,875 $ 1,008,893 $ 1,262,776 $ 1,530,260 $ 437,642 $ 815,187 $ 193,847 $ 378,985 $ 33,690 $ 6,492,155 |
Schedule of credit risk profile by risk grade of loans | Total Non-acquired Loans December 31, December 31, (Dollars in thousands) 2019 2018 Pass $ 9,123,097 $ 7,813,938 Special mention 83,830 66,645 Substandard 45,904 52,703 Doubtful — — $ 9,252,831 $ 7,933,286 |
Aging analysis of past due loans (includes nonaccrual loans), segregated by class of loans | 30 - 59 Days 60 - 89 Days 90+ Days Total Total (Dollars in thousands) Past Due Past Due Past Due Past Due Current Loans December 31, 2019 Commercial real estate: Construction and land development $ 321 $ 39 $ 255 $ 615 $ 967,745 $ 968,360 Commercial non-owner occupied 114 — 299 413 1,810,725 1,811,138 Commercial owner occupied 4,011 636 2,302 6,949 1,777,068 1,784,017 Consumer real estate: Consumer owner occupied 1,157 285 2,424 3,866 2,114,973 2,118,839 Home equity loans 1,343 39 562 1,944 516,684 518,628 Commercial and industrial 5,531 100 649 6,280 1,274,579 1,280,859 Other income producing property 208 — 457 665 217,952 218,617 Consumer 825 285 826 1,936 536,545 538,481 Other loans 25 3 — 28 13,864 13,892 $ 13,535 $ 1,387 $ 7,774 $ 22,696 $ 9,230,135 $ 9,252,831 December 31, 2018 Commercial real estate: Construction and land development $ 693 $ 305 $ 452 $ 1,450 $ 839,995 $ 841,445 Commercial non-owner occupied 68 18 396 482 1,415,069 1,415,551 Commercial owner occupied 1,639 1,495 904 4,038 1,513,513 1,517,551 Consumer real estate: Consumer owner occupied 1,460 789 943 3,192 1,933,073 1,936,265 Home equity loans 744 532 713 1,989 493,159 495,148 Commercial and industrial 898 120 573 1,591 1,053,361 1,054,952 Other income producing property 169 26 289 484 213,869 214,353 Consumer 437 174 718 1,329 447,335 448,664 Other loans — — — — 9,357 9,357 $ 6,108 $ 3,459 $ 4,988 $ 14,555 $ 7,918,731 $ 7,933,286 |
Summary of information pertaining to impaired loans | December 31, (Dollars in thousands) 2019 2018 Commercial non-owner occupied real estate: Construction and land development $ 363 $ 424 Commercial non-owner occupied 732 831 Total commercial non-owner occupied real estate 1,095 1,255 Consumer real estate: Consumer owner occupied 7,202 7,109 Home equity loans 1,468 2,333 Total consumer real estate 8,670 9,442 Commercial owner occupied real estate 3,482 1,068 Commercial and industrial 4,092 647 Other income producing property 798 500 Consumer 1,587 1,267 Restructured loans 2,578 648 Total loans on nonaccrual status $ 22,302 $ 14,827 |
Non-acquired loans | Commercial non-owner occupied real estate | |
Loans and Allowance for Loan Losses | |
Schedule of credit risk profile by risk grade of loans | Construction & Development Commercial Non-owner Occupied Commercial Owner Occupied December 31, December 31, December 31, December 31, December 31, December 31, (Dollars in thousands) 2019 2018 2019 2018 2019 2018 Pass $ 959,206 $ 832,612 $ 1,787,306 $ 1,407,744 $ 1,754,801 $ 1,480,267 Special mention 7,095 6,015 22,410 6,427 19,742 24,576 Substandard 2,059 2,818 1,422 1,380 9,474 12,708 Doubtful — — — — — — $ 968,360 $ 841,445 $ 1,811,138 $ 1,415,551 $ 1,784,017 $ 1,517,551 Commercial & Industrial Other Income Producing Property Commercial Total December 31, December 31, December 31, December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 Pass $ 1,256,465 $ 1,037,915 $ 213,291 $ 208,186 $ 5,971,069 $ 4,966,724 Special mention 16,055 5,887 3,966 4,706 69,268 47,611 Substandard 8,339 11,150 1,360 1,461 22,654 29,517 Doubtful — — — — — — $ 1,280,859 $ 1,054,952 $ 218,617 $ 214,353 $ 6,062,991 $ 5,043,852 |
Non-acquired loans | Consumer loans | |
Loans and Allowance for Loan Losses | |
Schedule of credit risk profile by risk grade of loans | The following table presents the credit risk profile by risk grade of consumer non-acquired loans: Consumer Owner Occupied Home Equity Consumer December 31, December 31, December 31, December 31, December 31, December 31, (Dollars in thousands) 2019 2018 2019 2018 2019 2018 Pass $ 2,094,080 $ 1,909,427 $ 508,054 $ 481,607 $ 536,002 $ 446,823 Special mention 9,585 11,304 4,490 7,293 487 437 Substandard 15,174 15,534 6,084 6,248 1,992 1,404 Doubtful — — — — — — $ 2,118,839 $ 1,936,265 $ 518,628 $ 495,148 $ 538,481 $ 448,664 Other Consumer Total December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Pass $ 13,892 $ 9,357 $ 3,152,028 $ 2,847,214 Special mention — — 14,562 19,034 Substandard — — 23,250 23,186 Doubtful — — — — $ 13,892 $ 9,357 $ 3,189,840 $ 2,889,434 |
Acquired credit impaired loans | |
Loans and Allowance for Loan Losses | |
Summary of loans | December 31, (Dollars in thousands) 2019 2018 Acquired credit impaired loans: Commercial real estate $ 130,938 $ 196,764 Commercial real estate—construction and development 25,032 32,942 Residential real estate 163,359 207,482 Consumer 35,488 42,492 Commercial and industrial 7,029 10,043 Acquired credit impaired loans 361,846 489,723 Less allowance for loan losses (5,064) (4,604) Acquired credit impaired loans, net $ 356,782 $ 485,119 |
Schedule of contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting carrying values | December 31, December 31, (Dollars in thousands) 2019 2018 Contractual principal and interest $ 452,818 $ 626,691 Non-accretable difference (13,938) (24,818) Cash flows expected to be collected 438,880 601,873 Accretable yield (82,098) (116,754) Carrying value $ 356,782 $ 485,119 |
Schedule of changes in the carrying value | Year Ended December 31, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 485,119 $ 618,803 Net reductions for payments, foreclosures, and accretion (127,877) (133,707) Change in the allowance for loan losses on acquired loans (460) 23 Balance at end of period, net of allowance for loan losses on acquired credit impaired loans $ 356,782 $ 485,119 |
Schedule of refined accretable yield balance | Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Balance at beginning of period $ 116,754 $ 133,096 $ 155,379 Addition from the PSC acquisition — — 4,910 Park Sterling Corporation ("Park Sterling") acquisition Day 1 adjustment — (1,460) 8,829 Contractual interest income (26,515) (33,115) (36,690) Accretion on acquired credit impaired loans (17,813) (19,004) (20,841) Reclass of nonaccretable difference due to improvement in expected cash flows 9,826 37,501 21,987 Other changes, net (154) (264) (478) Balance at end of period $ 82,098 $ 116,754 $ 133,096 |
Schedule of changes in allowance for loan losses | Commercial Real Estate- Commercial Construction and Residential Commercial (Dollars in thousands) Real Estate Development Real Estate Consumer and Industrial Total Year Ended December 31, 2019: Allowance for loan losses: Balance, December 31, 2018 $ 801 $ 717 $ 2,246 $ 761 $ 79 $ 4,604 Provision for loan losses 577 (148) 716 (222) 260 1,183 Reduction due to loan removals (1) — (407) — (315) (723) Balance, December 31, 2019 $ 1,377 $ 569 $ 2,555 $ 539 $ 24 $ 5,064 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 1,377 $ 569 $ 2,555 $ 539 $ 24 $ 5,064 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 130,938 25,032 163,359 35,488 7,029 361,846 Total acquired credit impaired loans $ 130,938 $ 25,032 $ 163,359 $ 35,488 $ 7,029 $ 361,846 Year Ended December 31, 2018: Allowance for loan losses: Balance, December 31, 2017 $ 288 $ 180 $ 3,553 $ 461 $ 145 $ 4,627 Provision for loan losses 532 657 (892) 303 511 1,111 Reduction due to loan removals (19) (120) (415) (3) (577) (1,134) Balance, December 31, 2018 $ 801 $ 717 $ 2,246 $ 761 $ 79 $ 4,604 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 801 $ 717 $ 2,246 $ 761 $ 79 $ 4,604 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 196,764 32,942 207,482 42,492 10,043 489,723 Total acquired credit impaired loans $ 196,764 $ 32,942 $ 207,482 $ 42,492 $ 10,043 $ 489,723 Year Ended December 31, 2017: Allowance for loan losses: Balance, December 31, 2016 $ 41 $ 139 $ 2,419 $ 558 $ 238 $ 3,395 Provision for loan losses 247 163 1,662 (83) 64 2,053 Reduction due to loan removals — (122) (528) (14) (157) (821) Balance, December 31, 2017 $ 288 $ 180 $ 3,553 $ 461 $ 145 $ 4,627 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 288 $ 180 $ 3,553 $ 461 $ 145 $ 4,627 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 234,595 49,649 260,787 51,453 26,946 623,430 Total acquired credit impaired loans $ 234,595 $ 49,649 $ 260,787 $ 51,453 $ 26,946 $ 623,430 * The carrying value of acquired credit impaired loans includes a non-accretable difference which is primarily associated with the assessment of credit quality of acquired loans. |
Schedule of credit risk profile by risk grade of loans | Commercial Real Estate— Construction and Commercial Real Estate Development December 31, December 31, (Dollars in thousands) 2019 2018 2019 2018 Pass $ 108,762 $ 160,788 $ 17,756 $ 20,293 Special mention 6,465 14,393 2,904 3,001 Substandard 15,711 21,583 4,372 9,648 Doubtful — — — — $ 130,938 $ 196,764 $ 25,032 $ 32,942 Residential Real Estate Consumer Commercial & Industrial December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 Pass $ 82,203 $ 104,181 $ 4,483 $ 5,751 $ 5,160 $ 5,093 Special mention 35,968 41,964 12,658 14,484 286 546 Substandard 45,188 61,337 18,347 22,257 1,583 4,404 Doubtful — — — — — — $ 163,359 $ 207,482 $ 35,488 $ 42,492 $ 7,029 $ 10,043 Total Acquired Credit Impaired Loans December 31, 2019 2018 Pass $ 218,364 $ 296,106 Special mention 58,281 74,388 Substandard 85,201 119,229 Doubtful — — $ 361,846 $ 489,723 |
Aging analysis of past due loans (includes nonaccrual loans), segregated by class of loans | 30 - 59 Days 60 - 89 Days 90+ Days Total Total (Dollars in thousands) Past Due Past Due Past Due Past Due Current Loans December 31, 2019 Commercial real estate $ 2,283 $ — $ 2,659 $ 4,942 $ 125,996 $ 130,938 Commercial real estate—construction and development — — 393 393 24,639 25,032 Residential real estate 2,838 976 5,571 9,385 153,974 163,359 Consumer 820 283 534 1,637 33,851 35,488 Commercial and industrial 118 910 75 1,103 5,926 7,029 $ 6,059 $ 2,169 $ 9,232 $ 17,460 $ 344,386 $ 361,846 December 31, 2018 Commercial real estate $ 876 $ 112 $ 4,533 $ 5,521 $ 191,243 $ 196,764 Commercial real estate—construction and development 115 12 2,816 2,943 29,999 32,942 Residential real estate 4,620 1,251 8,487 14,358 193,124 207,482 Consumer 722 90 839 1,651 40,841 42,492 Commercial and industrial 2,437 — 88 2,525 7,518 10,043 $ 8,770 $ 1,465 $ 16,763 $ 26,998 $ 462,725 $ 489,723 |
Acquired non-credit impaired non-accrual loans | |
Loans and Allowance for Loan Losses | |
Summary of information pertaining to nonaccrual loans by class | December 31, (Dollars in thousands) 2019 2018 Commercial non-owner occupied real estate: Construction and land development $ 699 $ 252 Commercial non-owner occupied 393 283 Total commercial non-owner occupied real estate 1,092 535 Consumer real estate: Consumer owner occupied 2,350 3,864 Home equity loans 3,067 4,512 Total consumer real estate 5,417 8,376 Commercial owner occupied real estate 903 1,470 Commercial and industrial 722 1,296 Other income producing property 1,101 244 Consumer 1,604 1,568 Total loans on nonaccrual status $ 10,839 $ 13,489 |
Acquired non-credit impaired loans | |
Loans and Allowance for Loan Losses | |
Summary of loans | December 31, (Dollars in thousands) 2019 2018 Acquired non-credit impaired loans: Commercial non-owner occupied real estate: Construction and land development $ 33,569 $ 165,070 Commercial non-owner occupied 447,441 679,253 Total commercial non-owner occupied real estate 481,010 844,323 Consumer real estate: Consumer owner occupied 496,431 628,813 Home equity loans 188,732 242,425 Total consumer real estate 685,163 871,238 Commercial owner occupied real estate 307,193 421,841 Commercial and industrial 101,880 212,537 Other income producing property 95,697 133,110 Consumer 89,484 111,777 Other — — Acquired non-credit impaired loans $ 1,760,427 $ 2,594,826 |
Schedule of changes in allowance for loan losses | Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Other Total Year Ended December 31, 2019 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (44) — (786) (6) (263) (1,289) (26) (444) — (2,858) Recoveries 3 — — 26 206 190 71 51 — 547 Provision (benefit) 41 — 786 (20) 57 1,099 (45) 393 — 2,311 Balance, December 31, 2019 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 33,569 447,441 307,193 496,431 188,732 101,880 95,697 89,484 — 1,760,427 Total acquired non-credit impaired loans $ 33,569 $ 447,441 $ 307,193 $ 496,431 $ 188,732 $ 101,880 $ 95,697 $ 89,484 $ — $ 1,760,427 Year Ended December 31, 2018 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (107) — (28) (70) (436) (1,108) — (465) — (2,214) Recoveries 8 — — 64 102 63 — 68 — 305 Provision (benefit) 99 — 28 6 334 1,045 — 397 — 1,909 Balance, December 31, 2018 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 165,070 679,253 421,841 628,813 242,425 212,537 133,110 111,777 — 2,594,826 Total acquired non-credit impaired loans $ 165,070 $ 679,253 $ 421,841 $ 628,813 $ 242,425 $ 212,537 $ 133,110 $ 111,777 $ — $ 2,594,826 Year Ended December 31, 2017 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (82) — — (150) (859) (71) — (468) — (1,630) Recoveries 4 — 2 41 393 6 8 23 — 477 Provision (benefit) 78 — (2) 109 466 65 (8) 445 — 1,153 Balance, December 31, 2017 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 403,357 817,166 521,818 710,611 320,591 398,696 196,669 137,710 1,289 3,507,907 Total acquired non-credit impaired loans $ 403,357 $ 817,166 $ 521,818 $ 710,611 $ 320,591 $ 398,696 $ 196,669 $ 137,710 $ 1,289 $ 3,507,907 |
Schedule of credit risk profile by risk grade of loans | Total Acquired Non-credit Impaired Loans December 31, (Dollars in thousands) 2019 2018 Pass $ 1,697,942 $ 2,523,010 Special mention 39,772 48,716 Substandard 22,713 23,100 Doubtful — — $ 1,760,427 $ 2,594,826 |
Aging analysis of past due loans (includes nonaccrual loans), segregated by class of loans | 30 - 59 Days 60 - 89 Days 90+ Days Total Total (Dollars in thousands) Past Due Past Due Past Due Past Due Current Loans December 31, 2019 Commercial real estate: Construction and land development $ 20 $ — $ 256 $ 276 $ 33,293 $ 33,569 Commercial non-owner occupied 144 1,146 76 1,366 446,075 447,441 Commercial owner occupied 890 702 698 2,290 304,903 307,193 Consumer real estate: Consumer owner occupied 768 151 414 1,333 495,098 496,431 Home equity loans 369 55 1,154 1,578 187,154 188,732 Commercial and industrial 93 204 17 314 101,566 101,880 Other income producing property 378 4,309 551 5,238 90,459 95,697 Consumer 485 613 423 1,521 87,963 89,484 $ 3,147 $ 7,180 $ 3,589 $ 13,916 $ 1,746,511 $ 1,760,427 December 31, 2018 Commercial real estate: Construction and land development $ 647 $ 45 $ 365 $ 1,057 $ 164,013 $ 165,070 Commercial non-owner occupied 607 21 283 911 678,342 679,253 Commercial owner occupied 964 1,006 — 1,970 419,871 421,841 Consumer real estate: Consumer owner occupied 1,127 621 789 2,537 626,276 628,813 Home equity loans 1,286 442 2,209 3,937 238,488 242,425 Commercial and industrial 2,648 130 19 2,797 209,740 212,537 Other income producing property 603 276 129 1,008 132,102 133,110 Consumer 574 209 532 1,315 110,462 111,777 $ 8,456 $ 2,750 $ 4,326 $ 15,532 $ 2,579,294 $ 2,594,826 |
Acquired non-credit impaired loans | Commercial non-owner occupied real estate | |
Loans and Allowance for Loan Losses | |
Schedule of credit risk profile by risk grade of loans | Commercial Non-owner Construction & Development Occupied Commercial Owner Occupied December 31, December 31, December 31, (Dollars in thousands) 2019 2018 2019 2018 2019 2018 Pass $ 31,690 $ 163,777 $ 432,710 $ 665,913 $ 300,678 $ 411,783 Special mention 966 838 14,162 13,018 3,092 5,664 Substandard 913 455 569 322 3,423 4,394 Doubtful — — — — — — $ 33,569 $ 165,070 $ 447,441 $ 679,253 $ 307,193 $ 421,841 Other Income Producing Commercial & Industrial Property Commercial Total December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 Pass $ 97,092 $ 202,399 $ 87,892 $ 125,399 $ 950,062 $ 1,569,271 Special mention 2,948 6,523 5,837 6,419 27,005 32,462 Substandard 1,840 3,615 1,968 1,292 8,713 10,078 Doubtful — — — — — — $ 101,880 $ 212,537 $ 95,697 $ 133,110 $ 985,780 $ 1,611,811 |
Acquired non-credit impaired loans | Consumer loans | |
Loans and Allowance for Loan Losses | |
Schedule of credit risk profile by risk grade of loans | The following table presents the credit risk profile by risk grade of consumer loans for acquired non-credit impaired loans: Consumer Owner Occupied Home Equity Consumer December 31, December 31, December 31, (Dollars in thousands) 2019 2018 2019 2018 2019 2018 Pass $ 486,433 $ 617,391 $ 174,912 $ 227,515 $ 86,535 $ 108,833 Special mention 6,434 7,868 5,679 7,688 654 698 Substandard 3,564 3,554 8,141 7,222 2,295 2,246 Doubtful — — — — — — $ 496,431 $ 628,813 $ 188,732 $ 242,425 $ 89,484 $ 111,777 Consumer Total December 31, 2019 2018 Pass $ 747,880 $ 953,739 Special mention 12,767 16,254 Substandard 14,000 13,022 Doubtful — — $ 774,647 $ 983,015 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Real Estate Owned | |
Schedule of information pertaining to OREO | (Dollars in thousands) OREO Balance, December 31, 2016 $ 18,316 Acquired in Southeastern Bank Financial Corp. acquisition 385 Acquired in Park Sterling Corp. acquisition 2,046 Additions, net 11,558 Writedowns (2,249) Sold (18,853) Balance, December 31, 2017 11,203 Acquired in Park Sterling Corp. acquisition 210 Additions, net 13,391 Writedowns (1,420) Sold (11,974) Balance, December 31, 2018 11,410 Additions, net 10,373 Writedowns (1,192) Sold (8,627) Balance, December 31, 2019 $ 11,964 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Premises and Equipment | |
Schedule of premises and equipment | December 31, (Dollars in thousands) Useful Life 2019 2018 Land $ 74,913 $ 77,338 Buildings and leasehold improvements 15 - 40 years 226,750 224,620 Equipment and furnishings 3 - 10 years 106,696 109,468 Lease right of use assets 87,389 — Construction in process 1,977 3,782 Total 497,725 415,208 Less accumulated depreciation (180,404) (174,132) $ 317,321 $ 241,076 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Other Intangible Assets | |
Summary of changes in the carrying amounts of goodwill | Year Ended December 31, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 1,002,900 $ 999,586 Additions: PSC acquisition Day 1 adjustment — 3,314 Balance at end of period $ 1,002,900 $ 1,002,900 |
Summary of gross carrying amounts and accumulated amortization of other intangible assets | December 31, (Dollars in thousands) 2019 2018 Gross carrying amount $ 119,501 $ 121,736 Accumulated amortization (69,685) (58,836) $ 49,816 $ 62,900 |
Schedule of estimated amortization expense of intangibles assets | (Dollars in thousands) Year ended December 31: 2020 $ 11,867 2021 10,584 2022 9,266 2023 6,314 2024 3,940 Thereafter 7,845 $ 49,816 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits | |
Schedule of total deposits | December 31, (Dollars in thousands) 2019 2018 Certificates of deposit $ 1,651,399 $ 1,775,095 Interest-bearing demand deposits 5,966,496 5,407,175 Non-interest bearing demand deposits 3,245,306 3,061,769 Savings deposits 1,309,896 1,399,815 Other time deposits 3,999 3,079 Total deposits $ 12,177,096 $ 11,646,933 |
Schedule of maturities of time deposits of all denominations | (Dollars in thousands) Year ended December 31: 2020 $ 1,094,319 2021 374,534 2022 100,213 2023 71,145 2024 12,489 Thereafter 2,698 $ 1,655,398 |
Federal Funds Purchased and S_2
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | |
Schedule of information concerning federal funds purchased and securities sold under agreements to repurchase | December 31, 2019 2018 2017 (Dollars in thousands) Amount Rate Amount Rate Amount Rate At period-end: Federal funds purchased and securities sold under repurchase agreements $ 298,741 0.90 % $ 270,649 1.08 % $ 286,857 0.45 % Average for the year: Federal funds purchased and securities sold under repurchase agreements $ 282,172 0.93 % $ 312,768 0.75 % $ 325,713 0.33 % Maximum month-end balance: Federal funds purchased and securities sold under repurchase agreements $ 321,833 $ 362,047 $ 401,786 |
Other Borrowings (Tables)
Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Borrowings. | |
Schedule of other borrowings | The Company’s other borrowings were as follows: 2019 2018 Weighted Weighted Interest Average Interest Average Rate at Interest Rate at Interest (Dollars in thousands) Maturity 12/31/2019 Balance Rate 12/31/2018 Balance Rate Short-term borrowings: Federal Home Loan Bank Fixed Rate Credit 12/31/2019 — % $ — 2.64 % $ 150,000 Federal Home Loan Bank Fixed Rate Credit 3/4/2020 1.75 % 200,000 — % — Federal Home Loan Bank Fixed Rate Credit 3/19/2020 1.73 % 350,000 — % — Federal Home Loan Bank Fixed Rate Credit 3/30/2020 1.72 % 150,000 — % — Total short-term borrowings 700,000 2.35 % 150,000 2.64 % Long-term borrowings SCBT Capital Trust I junior subordinated debt (1) 6/15/2035 3.68 % 12,372 4.58 % 12,372 SCBT Capital Trust II junior subordinated debt (1) 6/15/2035 3.68 % 8,248 4.58 % 8,248 SCBT Capital Trust III junior subordinated debt (1) 7/18/2035 3.48 % 20,619 4.38 % 20,619 SAVB Capital Trust I junior subordinated debt (1) 10/7/2033 4.84 % 6,186 5.29 % 6,186 SAVB Capital Trust II junior subordinated debt (1) 12/15/2034 4.09 % 4,124 4.99 % 4,124 TSB Statutory Trust I junior subordinated debt (1) 3/14/2037 3.61 % 3,093 4.51 % 3,093 Southeastern Bank Financial Statutory Trust I junior subordinated debt (1) 12/15/2035 3.29 % 10,310 4.19 % 10,310 Southeastern Bank Financial Statutory Trust II junior subordinated debt (1) 6/15/2036 3.29 % 10,310 4.19 % 10,310 CSBC Statutory Trust I junior subordinated debt (1) 12/15/2035 3.46 % 15,464 4.36 % 15,464 Community Capital Statutory Trust I junior subordinated debt (1) 6/15/2036 3.44 % 10,310 4.34 % 10,310 FCRV Statutory Trust I junior subordinated debt (1) 12/15/2036 3.59 % 5,155 4.49 % 5,155 Provident Community Bancshares Capital Trust I junior subordinated debt (1) 3/1/2037 3.84 % 4,124 4.14 % 4,124 Provident Community Bancshares Capital Trust II junior subordinated debt (1) 10/1/2036 3.65 % 8,248 4.48 % 8,248 Fair Market Value Discount Trust Preferred Debt Acquired (2,730) (3,397) Other Various 0.50 % 103 4.14 % 918 Total long-term borrowings 115,936 3.60 % 116,084 4.45 % Total borrowings $ 815,936 $ 266,084 (1) All of the junior subordinated debt above is adjustable rate based on three-month LIBOR plus a spread ranging from 140 basis points to 285 basis points. |
Summary of principal maturities of other borrowings | Junior Subordinated FHLB (Dollars in thousands) Debt Advances Other Total Year Ended December 31, 2020 $ — $ 700,000 $ 7 $ 700,007 2021 — — 8 8 2022 — — 8 8 2023 — — 8 8 2024 — — 8 8 Thereafter 115,833 — 64 115,897 $ 115,833 $ 700,000 $ 103 $ 815,936 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of provision for income taxes | Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Current: Federal $ 40,375 $ 25,275 $ 46,153 State 4,965 6,783 3,018 Total current tax expense 45,340 32,058 49,171 Deferred: Federal (1,598) 12,557 31,971 State 200 769 109 Total deferred tax expense (1,398) 13,326 32,080 Provision for income taxes $ 43,942 $ 45,384 $ 81,251 |
Analysis of difference between the provision for income taxes and taxes computed by applying the federal statutory income tax rate to income before provision for income taxes | Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Income taxes at federal statutory rate $ 48,389 $ 47,094 $ 59,082 Increase (reduction) of taxes resulting from: State income taxes, net of federal tax benefit 4,080 5,916 2,032 Non-deductible merger expenses — — 586 Increase in cash surrender value of BOLI policies (1,210) (1,261) (1,319) Tax-exempt interest (1,877) (2,037) (2,840) Income tax credits (6,881) (3,118) (1,951) Dividends received deduction (2) (5) (12) Non-deductible FDIC premiums 133 191 — Revaluation of net deferred tax asset due to tax law change — (991) 26,558 Other, net 1,310 (405) (885) $ 43,942 $ 45,384 $ 81,251 |
Schedule of components of the net deferred tax asset | December 31, (Dollars in thousands) 2019 2018 Allowance for loan losses $ 14,468 $ 12,953 Other-than-temporary impairment on securities 250 257 Share-based compensation 4,975 4,475 Pension plan and post-retirement benefits 494 192 Deferred compensation 12,475 11,841 Purchase accounting adjustments 24,530 28,659 Other real estate owned 380 455 Net operating loss and tax credit carryforwards 10,347 11,572 Lease liability 19,146 — Cash flow hedge 3,034 11 Unrealized losses on investment securities available for sale — 7,273 Other 1,040 1,665 Total deferred tax assets 91,139 79,353 Unrealized gains on investment securities available for sale 2,373 — Depreciation 6,585 7,314 Intangible assets 9,979 12,617 Net deferred loan costs 9,082 9,409 Right of use assets 19,465 — Prepaid expense 474 474 Tax deductible goodwill 810 388 Mortgage servicing rights 6,688 7,608 Other 480 840 Total deferred tax liabilities 55,936 38,650 Net deferred tax assets before valuation allowance 35,203 40,703 Less, valuation allowance (3,887) (3,575) Net deferred tax assets $ 31,316 $ 37,128 |
Other Expense (Tables)
Other Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Expense | |
Summary of the components of other noninterest expense | Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Business development and staff related $ 8,837 $ 9,536 $ 7,449 Bankcard expense 2,331 1,783 2,180 Other loan expense 2,087 2,028 2,590 Director and shareholder expense 1,859 2,065 1,635 Armored carrier and courier expense 1,874 2,102 1,703 Property and sales tax 2,131 1,760 1,033 Low income housing tax credit partnership amortization 6,141 3,829 3,038 Other 6,233 6,272 6,272 $ 31,493 $ 29,375 $ 25,900 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Common Share | |
Schedule of computation of basic and diluted earnings per share | Year Ended December 31, (Dollars and shares in thousands, except for per share amounts) 2019 2018 2017 Basic earnings per common share: Net income $ 186,483 $ 178,871 $ 87,554 Weighted-average basic common shares 34,561 36,530 29,686 Basic earnings per common share $ 5.40 $ 4.90 $ 2.95 Diluted earnings per share: Net income $ 186,483 $ 178,871 $ 87,554 Weighted-average basic common shares 34,561 36,530 29,686 Effect of dilutive securities 236 246 236 Weighted-average dilutive shares 34,797 36,776 29,922 Diluted earnings per common share $ 5.36 $ 4.86 $ 2.93 |
Schedule of anti-dilutive securities excluded from computation of diluted earnings per common share | Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Number of shares 62,235 62,235 34,712 Range of exercise prices $ 87.30 to $ 91.35 $ 87.30 to $ 91.35 $ 69.48 to $ 91.35 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of components of accumulated other comprehensive income (loss) | Unrealized Gains and Losses Gains and on Securities Losses on Benefit Available Cash Flow (Dollars in thousands) Plans for Sale Hedges Total Balance at December 31, 2016 $ (6,195) $ (1,708) $ (308) $ (8,211) Other comprehensive loss before reclassifications (365) (2,157) (13) (2,535) Amounts reclassified from accumulated other comprehensive income (loss) 562 (413) 170 319 Net comprehensive income (loss) 197 (2,570) 157 (2,216) Balance at December 31, 2017 (5,998) (4,278) (151) (10,427) Other comprehensive loss before reclassifications 382 (13,479) 33 (13,064) Amounts reclassified from accumulated other comprehensive income (loss) 926 510 121 1,557 Net comprehensive income (loss) 1,308 (12,969) 154 (11,507) AOCI reclassification to retained earnings from the adoption of ASU 2018-02 (1,760) (1,147) (40) (2,947) Balance at December 31, 2018 (6,450) (18,394) (37) (24,881) Other comprehensive income (loss) before reclassifications 20 28,245 (10,447) 17,818 Amounts reclassified from accumulated other comprehensive income 6,281 2,071 (272) 8,080 Net comprehensive income (loss) 6,301 30,316 (10,719) 25,898 Balance at December 31, 2019 $ (149) $ 11,922 $ (10,756) $ 1,017 |
Schedule of reclassifications out of accumulated other comprehensive income (loss), net of tax | Amount Reclassified from Accumulated (Dollars in thousands) For the Years Ended December 31, Accumulated Other Comprehensive Income (Loss) Component 2019 2018 2017 Income Statement Gains (losses) on cash flow hedges: Interest rate contracts $ (349) $ 155 $ 275 Interest expense 77 (34) (105) Provision for income taxes (272) 121 170 Net income (Gains) losses on sales of available for sale securities: $ 2,655 $ 655 $ (1,421) Securities gains (losses), net (584) (145) 542 Provision for income taxes 2,071 510 (879) Net income Other-than-temporary impairment losses on available for sale securities: $ — $ — $ 753 Other-than-temporary impairment losses — — (287) Provision for income taxes — — 466 Net income Losses and amortization of defined benefit pension: Actuarial losses $ 8,053 $ 1,187 $ 908 Salaries and employee benefits /Pension Plan Termination Expense (1,772) (261) (346) Provision for income taxes 6,281 926 562 Net income Total reclassifications for the period $ 8,080 $ 1,557 $ 319 |
Retirement Plans (Tables)
Retirement Plans (Tables) - Non-contributory defined benefit pension plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Plans | |
Schedule of the pension plan's funded status and amounts recognized in the company's accompanying consolidated financial statements | December 31, (Dollars in thousands) 2019 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 28,906 $ 31,500 $ 28,800 Service cost 121 77 127 Interest cost 1,158 1,080 1,124 Actuarial (gain) loss 2,471 (2,442) 2,665 Benefits paid (538) (1,188) (1,138) Expenses (318) (121) (78) Plan termination settlements (31,800) — — Benefit obligation at end of year — 28,906 31,500 Change in plan assets: Fair value of plan assets at beginning of year 30,545 31,387 28,216 Actual return on plan assets 2,111 467 4,387 Benefits paid (538) (1,188) (1,138) Expenses (318) (121) (78) Plan termination settlements (31,800) — — Fair value of plan assets at end of year — 30,545 31,387 Funded (unfunded) status $ — $ 1,639 $ (113) |
Schedule of components of net periodic benefit cost and other amounts recognized in other comprehensive income | December 31, (Dollars in thousands) 2019 2018 2017 Interest cost $ 1,157 $ 1,079 $ 1,124 Service cost 121 78 127 Expected return on plan assets (2,361) (2,328) (2,213) Recognized net actuarial loss 483 775 751 Net periodic pension benefit (600) (396) (211) Plan termination settlement 10,126 — — Net periodic pension cost with settlement 9,526 (396) — Net (gain) loss 2,722 (581) 491 Amortization of net gain (483) (775) (751) Plan termination settlement adjustment (10,126) — — Total amount recognized in other comprehensive income (7,887) (1,356) (260) Total recognized in net periodic benefit cost and other comprehensive income $ 1,639 $ (1,752) $ (471) |
Schedule of accumulated benefit obligations in excess of plan assets | December 31, (Dollars in thousands) 2019 2018 Projected benefit obligation $ — $ 28,906 Accumulated benefit obligation — 28,906 Fair value of plan assets — 30,545 |
Schedule of weighted average assumptions used to determine benefit obligations and net periodic benefit cost | Year ended December 31, 2019 2018 2017 Discount rate 4.10 % 3.50 % 4.00 % Expected long-term return on plan assets 7.75 % 7.75 % 7.75 % |
Schedule of expenses incurred and charged against operations with regard to all of the company's retirement plans | Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Pension $ — $ (309) $ (351) Pension plan termination expense 9,526 — — Employee savings plan/ 401(k) 6,659 7,948 7,381 Supplemental executive retirement plan 2,343 368 1,334 Post-retirement benefits 144 254 251 $ 18,672 $ 8,261 $ 8,615 |
Post-Retirement Benefits (Table
Post-Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SCBT Post-retirement Benefit Plan | |
Post-Retirement Benefits | |
Schedule of the plan's funded status and amounts recognized in the Company's accompanying consolidated financial statements | December 31, (Dollars in thousands) 2019 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 309 $ 337 $ 393 Interest cost 11 11 13 Actuarial loss (33) 2 (29) Benefits paid (33) (41) (40) Benefit obligation at end of year 254 309 337 Change in plan assets: Fair value of plan assets at beginning of year — — — Employer contribution 33 41 40 Benefits paid (33) (41) (40) Fair value of plan assets at end of year — — — Funded status $ (254) $ (309) $ (337) |
Schedule of weighted average assumptions used to determine benefit obligations and net periodic benefit cost | Year Ended December 31, 2019 2018 2017 Weighted-average assumptions used to determine benefit obligation at December 31: Discount rate 2.70 % 3.80 % 3.20 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.80 % 3.20 % 3.50 % Assumed health care cost trend rates at December 31: Health care cost trend rate assumed for next year 5.00 % 5.00 % 5.00 % |
Schedule of components of net periodic benefit cost and other amounts recognized in other comprehensive income | Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Interest cost $ 11 $ 10 $ 13 Recognized net actuarial loss 6 6 10 Net periodic benefit cost 17 16 23 Net (gain) loss (33) 2 (29) Amortization of gain (6) (6) (10) Total amount recognized in other comprehensive income (39) (4) (39) Total recognized in net periodic benefit cost and other comprehensive income $ (22) $ 12 $ (16) |
Schedule of effects of one-percentage-point change in assumed health care cost trend rates | One-Percentage Point (Dollars in thousands) Increase Decrease Effect on total of interest cost $ 1 $ (1) Effect on postretirement benefit obligation 13 (12) |
Schedule of estimated future benefit payments (including expected future service as appropriate) | (Dollars in thousands) 2020 $ 31 2021 30 2022 28 2023 27 2024 25 2025-2029 95 $ 236 |
FFCH Post-retirement Benefit Plan | |
Post-Retirement Benefits | |
Schedule of the plan's funded status and amounts recognized in the Company's accompanying consolidated financial statements | December 31, (Dollars in thousands) 2019 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 2,281 $ 2,392 $ 2,447 Interest cost 82 73 81 Actuarial loss 7 89 126 Benefits paid (273) (286) (274) Less: Federal subsidy on benefits paid 12 13 12 Benefit obligation at end of year 2,109 2,281 2,392 Change in plan assets: Fair value of plan assets at beginning of year — — — Employer contribution 261 286 274 Participants’ contributions 12 — — Benefits paid (273) (286) (274) Fair value of plan assets at end of year — — — Funded status $ (2,109) $ (2,281) $ (2,392) |
Schedule of weighted average assumptions used to determine benefit obligations and net periodic benefit cost | Year Ended December 31, 2019 2018 2017 Weighted-average assumptions used to determine benefit obligation at December 31: Discount rate 2.70 % 3.80 % 3.20 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.80 % 3.20 % 3.50 % Assumed health care cost trend rates at December 31: Health care cost trend rate assumed for next year 5.00 % 5.00 % 5.00 % |
Schedule of components of net periodic benefit cost and other amounts recognized in other comprehensive income | Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Interest cost $ 82 $ 73 $ 81 Recognized net actuarial loss 160 154 147 Net periodic benefit cost 242 227 228 Net loss 7 89 126 Amortization of loss (160) (154) (147) Total amount recognized in other comprehensive income (153) (65) (21) Total recognized in net periodic benefit cost and other comprehensive income $ 89 $ 162 $ 207 |
Schedule of effects of one-percentage-point change in assumed health care cost trend rates | One-Percentage Point (Dollars in thousands) Increase Decrease Effect on aggregate service and interest cost $ 5 $ (5) Effect on postretirement benefit obligation 130 (118) |
Schedule of estimated future benefit payments (including expected future service as appropriate) | Estimated future benefit payments (including expected future service as appropriate): (Dollars in thousands) 2020 $ 240 2021 230 2022 218 2023 206 2024 193 2025-2029 752 $ 1,839 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Compensation | |
Schedule of stock option activity | Year Ended December 31, 2019 2018 2017 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at January 1, 2019 213,866 $ 61.28 218,689 $ 52.75 246,535 $ 42.53 Granted — — 34,407 91.05 33,634 91.23 Exercised (36,978) 33.26 (33,424) 30.88 (59,480) 33.03 Forfeited — — (5,806) 91.35 (2,000) 26.01 Outstanding at December 31, 2019 176,888 67.14 213,866 61.28 218,689 52.75 Exercisable at December 31, 2019 131,216 60.12 140,115 49.41 148,702 41.62 Weighted-average fair value of options granted during the year $ — $ 28.01 $ 35.42 |
Schedule of information pertaining to options outstanding | Options Outstanding Options Exercisable Weighted Weighted Average Average Remaining Weighted Weighted Remaining Range of Number Contractual Average Number Average Contractual Exercise Prices Outstanding Life Exercise Price Outstanding Exercise Price Life $ 26.01 - $ 40.00 20,170 1.7 years $ 31.56 20,164 $ 31.56 $ 40.01 - $ 55.00 19,874 2.9 years $ 41.42 19,874 $ 41.42 $ 55.01 - $ 70.00 74,609 5.1 years $ 63.61 68,186 $ 63.59 $ 70.01 - $ 85.00 — — years $ — — $ — $ 85.01 - $ 91.35 62,235 7.6 years $ 91.12 22,992 $ 91.07 176,888 5.4 years $ 67.14 131,216 $ 60.12 4.6 years |
Schedule of weighted-average assumptions used in valuing options | Year ended December 31, 2019 2018 2017 Dividend yield — % 1.46 % 1.40 % Expected life — years 8.5 years 8.5 years Expected volatility — % 28.0 % 37.2 % Risk-free interest rate — % 2.54 % 2.43 % |
Summary of nonvested restricted stock | Weighted- Average Grant-Date Restricted Stock Shares Fair Value Nonvested at January 1, 2019 104,419 $ 62.45 Granted 8,934 73.34 Vested (40,858) 70.06 Forfeited (3,045) 72.01 Nonvested at December 31, 2019 69,450 58.96 |
Vesting schedule of shares | Shares 2020 48,830 2021 3,905 2022 4,174 2023 4,553 2024 3,405 Thereafter 4,583 69,450 |
Summary of nonvested RSUs | Weighted- Average Grant-Date Restricted Stock Units Shares Fair Value Nonvested at January 1, 2019 200,540 $ 85.10 Granted 159,521 68.27 Vested (31,723) 89.40 Forfeited (3,737) 82.18 Nonvested at December 31, 2019 324,601 76.44 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lease Commitments | |
Schedule of information pertaining to operating leases | Year Ended (Dollars in thousands) December 31, 2019 Lease Expense Components: Operating lease expense $ 8,804 Short-term lease expense 494 Variable lease expense 430 Total lease expense $ 9,728 Supplemental Cash Flow and Other Information Related to Leases: Cash paid for amounts included in the measurement of lease liabilities - operating leases $ 7,725 Initial ROU assets recorded in exchange for new lease liabilities - operating leases $ 10,239 Weighted - average remaining lease term (years) - operating leases 14.14 Weighted - average discount rate - operating leases 3.9% December 31, 2019 Supplemental Balance Sheet Information Related to Leases Operating lease ROU assets ( premises and equipment $ 87,389 Operating lease liabilities ( other liabilities $ 88,846 Maturity Analysis of Lease Liabilities: Year Ending December 31, 2020 $ 8,077 2021 8,226 2022 8,341 2023 8,414 2024 7,974 Thereafter 76,222 Total 117,254 Less: Imputed Interest (28,408) Lease Liability $ 88,846 |
Schedule of future minimum lease payments, by year and in the aggregate, under noncancellable operating leases with initial or remaining terms in excess of one year | (Dollars in thousands) Year Ended December 31, 2019 $ 7,497 2020 7,580 2021 7,423 2022 6,823 2023 6,123 Thereafter 16,510 $ 51,956 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments with Off-Balance Sheet Risk | |
Schedule of financial instruments of the subsidiary, whose contract amounts represent credit risk | December 31, (Dollars in thousands) 2019 2018 Commitments to extend credit $ 2,902,000 $ 2,748,901 Standby letters of credit and financial guarantees 32,869 32,725 $ 2,934,869 $ 2,781,626 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value | |
Schedule of recorded amount of assets and liabilities measured at fair value on a recurring basis | Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2019: Assets Derivative financial instruments $ 16,252 $ — $ 16,252 $ — Loans held for sale 59,363 — 59,363 — Securities available for sale: Government-sponsored entities debt 25,941 — 25,941 — State and municipal obligations 208,415 — 208,415 — Mortgage-backed securities 1,721,691 — 1,721,691 — Total securities available for sale 1,956,047 — 1,956,047 — Mortgage servicing rights 30,525 — — 30,525 $ 2,062,187 $ — $ 2,031,662 $ 30,525 Liabilities Derivative financial instruments $ 31,273 $ — $ 31,273 $ — December 31, 2018: Assets Derivative financial instruments $ 5,090 $ — $ 5,090 $ — Loans held for sale 22,925 — 22,925 — Securities available for sale: Government-sponsored entities debt 48,251 — 48,251 — State and municipal obligations 200,768 — 200,768 — Mortgage-backed securities 1,268,048 — 1,268,048 — Total securities available for sale 1,517,067 — 1,517,067 — Mortgage servicing rights 34,727 — — 34,727 $ 1,579,809 $ — $ 1,545,082 $ 34,727 Liabilities Derivative financial instruments $ 4,421 $ — $ 4,421 $ — |
Schedule of reconciliation of the beginning and ending balances of Level 3 assets and liabilities recorded at fair value on a recurring basis | (Dollars in thousands) Assets Liabilities Fair value, January 1, 2019 $ 34,727 $ — Servicing assets that resulted from transfers of financial assets 7,363 — Changes in fair value due to valuation inputs or assumptions (6,976) — Changes in fair value due to decay (4,589) — Fair value , December 31, 2019 $ 30,525 $ — Fair value, January 1, 2018 $ 31,119 $ — Servicing assets that resulted from transfers of financial assets 5,962 — Changes in fair value due to valuation inputs or assumptions 1,861 — Changes in fair value due to decay (4,215) — Fair value, December 31, 2018 $ 34,727 $ — |
Schedule of amounts of assets and liabilities measured at fair value on a nonrecurring basis | Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2019: OREO $ 11,964 $ — $ — $ 11,964 Non-acquired impaired loans 15,444 — — 15,444 December 31, 2018: OREO $ 11,410 $ — $ — $ 11,410 Non-acquired impaired loans 13,164 — — 13,164 |
Quantitative Information about Level 3 Fair Value Measurements | Weighted Average December 31, December 31, Valuation Technique Unobservable Input 2019 2018 Nonrecurring measurements: Non-acquired impaired loans Discounted appraisals Collateral discounts 2 % 3 % OREO Discounted appraisals Collateral discounts and estimated costs to sell 31 % 23 % |
Schedule of estimated fair value, and related carrying amount, of the Company's financial instruments | Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 December 31, 2019 Financial assets: Cash and cash equivalents $ 688,704 $ 688,704 $ 688,704 $ — $ — Investment securities 2,005,171 2,005,171 49,124 1,956,047 — Loans held for sale 59,363 59,363 — 59,363 — Loans, net of allowance for loan losses 11,313,113 11,452,003 — — 11,452,003 Accrued interest receivable 36,774 36,774 — 8,500 28,274 Mortgage servicing rights 30,525 30,525 — — 30,525 Interest rate swap - non-designated hedge 15,350 15,350 — 15,350 — Other derivative financial instruments (mortgage banking related) 902 902 — 902 — Financial liabilities: Deposits 12,177,096 11,406,477 — 11,406,477 — Federal funds purchased and securities sold under agreements to repurchase 298,741 298,741 — 298,741 — Other borrowings 815,936 818,210 — 818,210 — Accrued interest payable 4,916 4,916 — 4,916 — Interest rate swap - non-designated hedge 16,693 16,693 — 16,693 — Interest rate swap - cash flow hedge 13,791 13,791 — 13,791 — Other derivative financial instruments (mortgage banking related) 789 789 — 789 — Off balance sheet financial instruments: Commitments to extend credit — 36,031 — 36,031 — December 31, 2018 Financial assets: Cash and cash equivalents $ 408,983 $ 408,983 $ 408,983 $ — $ — Investment securities 1,542,671 1,542,671 25,604 1,517,067 — Loans held for sale 22,925 22,925 — 22,925 — Loans, net of allowance for loan losses 10,962,037 10,613,571 — — 10,613,571 Accrued interest receivable 35,997 35,997 — 6,908 29,089 Mortgage servicing rights 34,727 34,727 — — 34,727 Interest rate swap - non-designated hedge 3,824 3,824 — 3,824 — Other derivative financial instruments (mortgage banking related) 1,267 1,267 — 1,267 — Financial liabilities: Deposits 11,646,933 10,561,394 — 10,561,394 — Federal funds purchased and securities sold under agreements to repurchase 270,649 270,649 — 270,649 — Other borrowings 266,084 269,134 — 269,134 — Accrued interest payable 4,719 4,719 — 4,719 — Interest rate swap - non-designated hedge 4,373 4,373 — 4,373 — Interest rate swap - cash flow hedge 48 48 — 48 — Off balance sheet financial instruments: Commitments to extend credit — (88,424) — (88,424) — |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Matters | |
Schedule of actual and required capital ratios | Minimum Capital Minimum Capital Required to be Required - Basel III Required - Basel III Considered Well Actual Phase-In Schedule Fully Phased In Capitalized (Dollars in thousands) Amount Ratio Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio December 31, 2019 Common equity Tier 1 to risk-weighted assets: Consolidated $ 1,326,725 11.30 % $ 822,225 7.00 % $ 822,225 7.00 % $ 763,495 6.50 % South State Bank (the Bank) 1,417,616 12.07 % 822,218 7.00 % 822,218 7.00 % 763,488 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 1,438,995 12.25 % 998,416 8.50 % 998,416 8.50 % 939,686 8.00 % South State Bank (the Bank) 1,417,616 12.07 % 998,407 8.50 % 998,407 8.50 % 939,677 8.00 % Total capital to risk-weighted assets: Consolidated 1,501,321 12.78 % 1,233,338 10.50 % 1,233,338 10.50 % 1,174,607 10.00 % South State Bank (the Bank) 1,479,942 12.60 % 1,233,327 10.50 % 1,233,327 10.50 % 1,174,597 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 1,438,995 9.73 % 591,731 4.00 % 591,731 4.00 % 739,664 5.00 % South State Bank (the Bank) 1,417,616 9.59 % 591,592 4.00 % 591,592 4.00 % 739,490 5.00 % December 31, 2018: Common equity Tier 1 to risk-weighted assets: Consolidated $ 1,335,826 12.05 % $ 706,981 6.38 % $ 776,293 7.00 % $ 720,844 6.50 % South State Bank (the Bank) 1,427,764 12.87 % 707,039 6.38 % 776,356 7.00 % 720,902 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 1,447,428 13.05 % 873,330 7.88 % 942,642 8.50 % 887,192 8.00 % South State Bank (the Bank) 1,427,764 12.87 % 873,401 7.88 % 942,718 8.50 % 887,264 8.00 % Total capital to risk-weighted assets: Consolidated 1,503,561 13.56 % 1,095,128 9.88 % 1,164,440 10.50 % 1,108,990 10.00 % South State Bank (the Bank) 1,483,897 13.38 % 1,095,217 9.88 % 1,164,534 10.50 % 1,109,080 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 1,447,428 10.65 % 543,506 4.00 % 543,506 4.00 % 679,383 5.00 % South State Bank (the Bank) 1,427,764 10.51 % 543,387 4.00 % 543,387 4.00 % 679,234 5.00 % |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Statements of Parent Company | |
Schedule of condensed balance sheet | December 31, (Dollars in thousands) 2019 2018 ASSETS Cash $ 21,688 $ 21,092 Investment in subsidiary 2,467,466 2,461,836 Other assets 204 54 Total assets $ 2,489,358 $ 2,482,982 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities $ 116,345 $ 116,686 Shareholders’ equity 2,373,013 2,366,296 Total liabilities and shareholders’ equity $ 2,489,358 $ 2,482,982 |
Schedule of condensed statements of income | Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Income: Dividends from subsidiary $ 214,852 $ 117,298 $ 63,703 Operating income 5,386 67 580 Total income 220,238 117,365 64,283 Operating expenses 15,409 15,302 15,482 Income before income tax benefit and equity in undistributed earnings of subsidiaries 204,829 102,063 48,801 Applicable income tax benefit 1,883 3,055 5,053 Equity in undistributed earnings of subsidiary (excess distribution) (20,229) 73,753 33,700 Net income available to common shareholders $ 186,483 $ 178,871 $ 87,554 |
Schedule of condensed statements of cash flows | Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 186,483 $ 178,871 $ 87,554 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 666 666 666 Share-based compensation 8,839 8,783 6,934 Gain on sale of securities available for sale (5,366) — (486) Decrease (increase) in other assets (159) 1,465 (1,564) Decrease in other liabilities (959) (2,048) (6,341) Undistributed earnings of subsidiary 20,229 (73,753) (33,700) Net cash provided by operating activities 209,733 113,984 53,063 Cash flows from investing activities: Proceeds from sales and calls of other investment securities 5,366 — 687 Net cash inflow from acquisitions — — 15,468 Net cash provided by investing activities 5,366 — 16,155 Cash flows from financing activities: Repayment of other borrowings — — (30,000) Common stock issuance 1,394 1,331 1,056 Common stock repurchased (159,431) (70,577) (5,512) Dividends paid on common stock (57,696) (50,557) (38,623) Stock options exercised 1,230 1,032 1,965 Net cash used in financing activities (214,503) (118,771) (71,114) Net increase (decrease) in cash and cash equivalents 596 (4,787) (1,896) Cash and cash equivalents at beginning of period 21,092 25,879 27,775 Cash and cash equivalents at end of period $ 21,688 $ 21,092 $ 25,879 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Financial Instruments | |
Derivative financial instruments summary | December 31, 2019 December 31, 2018 Balance Sheet Notional Estimated Fair Value Notional Estimated Fair Value (Dollars in thousands) Location Amount Gain Loss Amount Gain Loss Cash flow hedges of interest rate risk on Junior Subordinated Debt: Pay fixed rate swap with counterparty Other Liabilities $ — $ — $ — $ 8,000 $ — $ 48 Cash flow hedges of interest rate risk on FHLB Advances: Pay fixed rate swap with counterparty Other Liabilities $ 700,000 $ — $ 13,791 $ — $ — $ — Fair value hedge of interest rate risk: Pay fixed rate swap with counterparty Other Assets and Other Liabilities $ 2,754 $ — $ 199 $ 2,824 $ — $ 51 Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with borrowers Other Assets and Other Liabilities $ 564,068 $ 15,277 $ 1,019 $ 368,513 $ 3,105 $ 4,193 Matched interest rate swaps with counterparty Other Assets and Other Liabilities $ 564,068 $ 73 $ 15,475 $ 368,513 $ 718 $ 129 Not designated hedges of interest rate risk - mortgage banking activities: Contracts used to hedge mortgage servicing rights Other Assets and Other Liabilities $ 133,000 $ — $ 789 $ 94,500 $ 1,184 $ — Forward sales commitments used to hedge mortgage pipeline Other Assets $ 87,773 $ 902 $ — $ 46,812 $ 83 $ — Total derivatives $ 2,051,663 $ 16,252 $ 31,273 $ 889,162 $ 5,090 $ 4,421 |
Schedule of notional value of forward sale commitments and the fair value of those obligations along with the fair value of the mortgage pipeline | December 31, (Dollars in thousands) 2019 2018 Mortgage loan pipeline $ 80,785 $ 50,442 Expected closures 60,588 37,832 Fair value of mortgage loan pipeline commitments 1,160 705 Forward sales commitments 87,773 46,812 Fair value of forward commitments (258) (621) |
Loan Servicing, Mortgage Orig_2
Loan Servicing, Mortgage Origination, and Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loan Servicing, Mortgage Origination, and Loans Held for Sale | |
Summary of changes in the fair value of MSRs and its offsetting hedge | Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Increase (decrease) in fair value of MSRs $ (6,976) $ 1,861 $ (595) Decay of MSRs (4,589) (4,215) (3,762) Gain (loss) related to derivatives 3,967 (953) 200 Net effect on statements of income $ (7,598) $ (3,307) $ (4,157) |
Schedule of characteristics and sensitivity analysis of the MSR | December 31, (Dollars in thousands) 2019 2018 Composition of residential loans serviced for others Fixed-rate mortgage loans 99.8 % 99.8 % Adjustable-rate mortgage loans 0.2 % 0.2 % Total 100.0 % 100.0 % Weighted average life 6.55 years 7.88 years Constant Prepayment rate (CPR) 10.3 % 7.3 % Weighted average discount rate 9.4 % 9.4 % Effect on fair value due to change in interest rates 25 basis point increase $ 2,477 $ 1,504 50 basis point increase 4,452 2,740 25 basis point decrease (2,938) (1,981) 50 basis point decrease (6,228) (4,421) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Operations, Segments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)subsidiarycounty | |
Nature of Operations | |
Number of unconsolidated subsidiaries | subsidiary | 13 |
Investment in unconsolidated subsidiaries | |
Nature of Operations | |
Trust preferred securities to be issued | $ 115 |
SCBT Capital Trust I | |
Nature of Operations | |
Trust preferred securities to be issued | 12 |
SCBT Capital Trust II | |
Nature of Operations | |
Trust preferred securities to be issued | 8 |
SCBT Capital Trust III | |
Nature of Operations | |
Trust preferred securities to be issued | 20 |
TSB Statutory Trust I | |
Nature of Operations | |
Trust preferred securities to be issued | 3 |
SAVB Capital Trust I | |
Nature of Operations | |
Trust preferred securities to be issued | 6 |
SAVB Capital Trust II | |
Nature of Operations | |
Trust preferred securities to be issued | 4 |
SBFST Capital Trust ! | |
Nature of Operations | |
Trust preferred securities to be issued | 10 |
SBFST Capital Trust II | |
Nature of Operations | |
Trust preferred securities to be issued | 10 |
Provident Community Bancshares Capital Trust I | |
Nature of Operations | |
Trust preferred securities to be issued | 4 |
FCRV Statutory Trust I | |
Nature of Operations | |
Trust preferred securities to be issued | 5 |
Community Capital Statutory Trust I | |
Nature of Operations | |
Trust preferred securities to be issued | 10 |
CSBC Statutory Trust I | |
Nature of Operations | |
Trust preferred securities to be issued | 15 |
Provident Community Bancshares Capital Trust II | |
Nature of Operations | |
Trust preferred securities to be issued | $ 8 |
South Carolina | |
Nature of Operations | |
Number of counties | county | 29 |
NORTH CAROLINA | |
Nature of Operations | |
Number of counties | county | 9 |
Northeast Georgia | |
Nature of Operations | |
Number of counties | county | 17 |
VIRGINIA | |
Nature of Operations | |
Number of counties | county | 4 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Concentrations of Credit Risk (Details) - Concentrations of Credit Risk $ in Millions | Dec. 31, 2019USD ($)item |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold (as a percent) | 25.00% |
Concentration risk threshold, total risk-based capital threshold | $ 375.3 |
Number of credit concentrations for non-acquired credit impaired loans | item | 4 |
Lessors of residential and buildings | |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold | $ 570.9 |
Lessors of nonresidential buildings | |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold | 1,400 |
Loans on hotels and motels | |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold | 574.6 |
Loans on owner occupied office buildings | |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold | $ 380.5 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Jan. 01, 2019 | |
Summary of Significant Accounting Policies | ||
Existence of option to extend | true | |
Right to use asset | $ 87,389 | |
Lease Liability | $ 88,846 | |
Minimum | ||
Summary of Significant Accounting Policies | ||
Lease terms | 12 months | |
Maximum | ||
Summary of Significant Accounting Policies | ||
Lease terms | 24 years | |
Adjustments | ASU 2016- 02 | ||
Summary of Significant Accounting Policies | ||
Right to use asset | $ 82,200 | |
Lease Liability | $ 82,200 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Intangible assets, Transfer of financial assets (Details) $ in Millions | Apr. 30, 2019USD ($) | Dec. 31, 2019USD ($)item |
Intangible Assets | ||
Number of reportable operating segments | item | 2 | |
Impairment Charges | $ | $ 0 | $ 0 |
Minimum | ||
Intangible Assets | ||
Estimated useful lives of intangibles | 2 years | |
Maximum | ||
Intangible Assets | ||
Estimated useful lives of intangibles | 15 years | |
Core deposit intangibles | Minimum | ||
Intangible Assets | ||
Estimated useful lives of intangibles | 10 years | |
Core deposit intangibles | Maximum | ||
Intangible Assets | ||
Estimated useful lives of intangibles | 13 years | |
Noncompete intangibles | Minimum | ||
Intangible Assets | ||
Estimated useful lives of intangibles | 2 years | |
Noncompete intangibles | Maximum | ||
Intangible Assets | ||
Estimated useful lives of intangibles | 3 years | |
Client list intangibles | ||
Intangible Assets | ||
Estimated useful lives of intangibles | 15 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Revenue from Contracts with Customers (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Summary of Significant Accounting Policies | |||
Number of active contracts | contract | 731,000 | ||
Transferred at Point in Time | |||
Summary of Significant Accounting Policies | |||
Revenue from contract with customers | $ 104,300 | $ 113,600 | |
Transferred over Time | |||
Summary of Significant Accounting Policies | |||
Revenue from contract with customers | 19,000 | 19,200 | |
Interchange and debit card transaction fees | |||
Summary of Significant Accounting Policies | |||
Revenue from contract with customers | 12,600 | 20,900 | $ 26,500 |
Interchange and debit card transaction fees | Before 606 | |||
Summary of Significant Accounting Policies | |||
Transaction fees | 24,500 | 33,000 | 35,600 |
Network costs | 11,900 | 12,100 | 9,100 |
Trust and investment services income | |||
Summary of Significant Accounting Policies | |||
Revenue from contract with customers | 29,244 | 30,229 | $ 25,401 |
Deposit account services | |||
Summary of Significant Accounting Policies | |||
Revenue from contract with customers | $ 76,400 | $ 82,600 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Recent Accounting and Regulatory Pronouncements (Details) | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2016USD ($) |
Right to use asset | $ 87,389,000 | |||||
Lease Liability | 88,846,000 | |||||
Hosting Arrangement, Service Contract, Implementation Cost, Capitalized, New Commercial Loan Platform | 1,100,000 | |||||
Allowance for credit losses | 61,991,000 | $ 55,798,000 | $ 48,075,000 | $ 40,355,000 | ||
Increase in allowance for credit losses | (723,000) | $ (1,134,000) | $ (821,000) | |||
Internal use software | ||||||
Hosting Arrangement, Service Contract, Implementation Cost, Capitalized, Front Capture Software Product | $ 171,000 | |||||
ASU 2016- 02 | Adjustments | ||||||
Right to use asset | $ 82,200,000 | |||||
Lease Liability | 82,200,000 | |||||
ASU 2016-13 | ||||||
Number of loan segments | loan | 10 | |||||
Historical losses term | 10 years | |||||
ASU 2016-13 | Minimum | Forecast adjustments | ||||||
Allowance for credit losses | $ 105,000,000 | |||||
Increase in allowance for credit losses | 35,000,000 | |||||
Estimated decline in equity, net of tax | 33,500,000 | |||||
ASU 2016-13 | Maximum | Forecast adjustments | ||||||
Allowance for credit losses | 120,000,000 | |||||
Increase in allowance for credit losses | 50,000,000 | |||||
Estimated decline in equity, net of tax | $ 45,200,000 | |||||
2018-15 | ||||||
Capitalized implementation costs related to internal use software | $ 1,300,000 | |||||
2018-15 | Internal use software | ||||||
Capitalized implementation costs related to internal use software | 1,300,000 | |||||
Hosting Arrangement, Service Contract, Implementation Cost, Capitalized, New Commercial Loan Platform | 1,100,000 | |||||
Hosting Arrangement, Service Contract, Implementation Cost, Capitalized, Front Capture Software Product | $ 171,000 |
Mergers and Acquisitions (Detai
Mergers and Acquisitions (Details) | Nov. 30, 2017USD ($)shares | Jan. 03, 2017USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Mergers and Acquisitions | ||||
Deferred tax assets | $ 91,139,000 | $ 79,353,000 | ||
Deferred Tax Liabilities, Gross | $ 55,936,000 | $ 38,650,000 | ||
Park Sterling Corporation | ||||
Mergers and Acquisitions | ||||
Fixed exchange ratio for shares issued (in shares) | 0.14 | |||
Common stock shares outstanding | shares | 7,480,343 | |||
Total purchase price | $ 692,959,000 | |||
Value of stock options | $ 4,305,000 | |||
Southeastern Bank Financial | ||||
Mergers and Acquisitions | ||||
Fixed exchange ratio for shares issued (in shares) | 0.7307 | |||
Common stock shares outstanding | shares | 4,978,338 | |||
Total purchase price | $ 435,115,000 | |||
Value of stock options | $ 490,000 |
Mergers and Acquisitions- Park
Mergers and Acquisitions- Park & SBFC (Details) - USD ($) | Nov. 30, 2017 | Jan. 03, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2018 |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Federal funds purchased and securities sold under agreements to repurchase | $ 298,741,000 | $ 270,649,000 | |||||
Goodwill | $ 999,586,000 | 1,002,900,000 | $ 999,586,000 | $ 999,586,000 | 1,002,900,000 | ||
Consideration: | |||||||
SSB common stock issued ($688,566) and cash exchanged for fractional shares ($88) | $ 68,700,000 | ||||||
Additional information | |||||||
Provisional income tax expense | $ 26,600,000 | 26,600,000 | |||||
Proforma amounts | |||||||
Total revenues (net interest income plus noninterest income), Pro Forma | 14,052,000 | 690,716,000 | |||||
Net operating income available to the common shareholder, Pro Forma | 4,829,000 | 146,821,000 | |||||
Park Sterling Corporation | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Cash and cash equivalents | 116,454,000 | ||||||
Investment securities | 462,924,000 | ||||||
Loans held for sale | 70,882,000 | ||||||
Loans, net of allowance and mark | 2,241,326,000 | ||||||
Premises and equipment | 55,790,000 | ||||||
Intangible assets | 29,496,000 | ||||||
OREO and repossessed assets | 2,330,000 | ||||||
Bank owned life insurance | 72,703,000 | ||||||
Deferred tax asset. | 31,682,000 | ||||||
Other assets | 21,119,000 | ||||||
Total assets | 3,104,706,000 | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Noninterest-bearing | 561,874,000 | ||||||
Interest-bearing | 1,888,890,000 | ||||||
Total deposits | 2,450,764,000 | ||||||
Other borrowings | 340,938,000 | ||||||
Other liabilities | 26,310,000 | ||||||
Total liabilities | 2,818,012,000 | ||||||
Net identifiable assets acquired over (under) liabilities assumed | 286,694,000 | ||||||
Goodwill | 406,265,000 | ||||||
Net assets acquired over liabilities assumed | $ 692,959,000 | ||||||
Consideration: | |||||||
Common stock shares outstanding | 7,480,343 | ||||||
Purchase price per share of the SSB's common stock | $ 92.05 | ||||||
SSB common stock issued ($688,566) and cash exchanged for fractional shares ($88) | $ 688,654,000 | ||||||
Common stock issued | 688,566,000 | ||||||
Price per fractional share | 88 | ||||||
Cash paid for stock options outstanding | 4,305,000 | ||||||
Fair value of total consideration transferred | 692,959,000 | ||||||
Additional information | |||||||
Allowance for loan losses | 12,500,000 | ||||||
Fair value mark on loans | $ 21,300,000 | ||||||
Interest rate on core deposit intangibles (in %) | 1.66% | ||||||
Goodwill write-off | $ 73,100,000 | ||||||
Premium for fixed maturity time deposits | 2,300,000 | ||||||
Fair value mark on fixed maturity time deposits | 253,000 | ||||||
Fair value adjustment on Trust Preferred Securities | 2,400,000 | ||||||
Discount on trust preferred securities | 14,000,000 | ||||||
Fair value adjustments to employee benefit plans | 1,500,000 | ||||||
Merger-related costs | 44,500,000 | 44,500,000 | 44,500,000 | $ 28,600,000 | |||
Proforma amounts | |||||||
Total revenues (net interest income plus noninterest income), Pro Forma | 67,823,000 | ||||||
Net operating income available to the common shareholder, Pro Forma | 25,790,000 | ||||||
Park Sterling Corporation | As previously recorded by acquiree | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Cash and cash equivalents | 116,454,000 | ||||||
Investment securities | 461,261,000 | ||||||
Loans held for sale | 2,200,000 | ||||||
Loans, net of allowance and mark | 2,346,612,000 | ||||||
Premises and equipment | 61,059,000 | ||||||
Intangible assets | 73,090,000 | ||||||
OREO and repossessed assets | 2,549,000 | ||||||
Bank owned life insurance | 72,703,000 | ||||||
Deferred tax asset. | 17,963,000 | ||||||
Other assets | 21,595,000 | ||||||
Total assets | 3,175,486,000 | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Noninterest-bearing | 561,874,000 | ||||||
Interest-bearing | 1,886,810,000 | ||||||
Total deposits | 2,448,684,000 | ||||||
Other borrowings | 329,249,000 | ||||||
Other liabilities | 24,179,000 | ||||||
Total liabilities | 2,802,112,000 | ||||||
Net identifiable assets acquired over (under) liabilities assumed | 373,374,000 | ||||||
Net assets acquired over liabilities assumed | 373,374,000 | ||||||
Park Sterling Corporation | Adjustments | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Investment securities | 1,444,000 | ||||||
Loans held for sale | 68,686,000 | ||||||
Loans, net of allowance and mark | (95,878,000) | ||||||
Premises and equipment | (4,882,000) | ||||||
Intangible assets | (46,915,000) | ||||||
OREO and repossessed assets | (429,000) | ||||||
Deferred tax asset. | 11,596,000 | ||||||
Other assets | (476,000) | ||||||
Total assets | (66,854,000) | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Interest-bearing | 2,692,000 | ||||||
Total deposits | 2,692,000 | ||||||
Other borrowings | 11,689,000 | ||||||
Other liabilities | 2,131,000 | ||||||
Total liabilities | 16,512,000 | ||||||
Net identifiable assets acquired over (under) liabilities assumed | (83,366,000) | ||||||
Goodwill | 402,951,000 | ||||||
Net assets acquired over liabilities assumed | 319,585,000 | ||||||
Additional information | |||||||
Adjustment to acquired loans portfolio | 70,400,000 | ||||||
Park Sterling Corporation | Subsequent Fair Value Adjustments | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Investment securities | 219,000 | ||||||
Loans held for sale | (4,000) | ||||||
Loans, net of allowance and mark | (9,408,000) | ||||||
Premises and equipment | (387,000) | ||||||
Intangible assets | 3,321,000 | ||||||
OREO and repossessed assets | 210,000 | ||||||
Deferred tax asset. | 2,123,000 | ||||||
Total assets | (3,926,000) | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Interest-bearing | (612,000) | ||||||
Total deposits | (612,000) | ||||||
Total liabilities | (612,000) | ||||||
Net identifiable assets acquired over (under) liabilities assumed | (3,314,000) | ||||||
Goodwill | $ 3,314,000 | ||||||
Southeastern Bank Financial | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Cash and cash equivalents | $ 72,043,000 | ||||||
Investment securities | 590,054,000 | ||||||
Loans held for sale | 13,652,000 | ||||||
Loans, net of allowance and mark | 1,049,950,000 | ||||||
Premises and equipment | 24,077,000 | ||||||
Intangible assets | 18,120,000 | ||||||
OREO and repossessed assets | 450,000 | ||||||
Bank owned life insurance | 44,513,000 | ||||||
Deferred tax asset. | 16,075,000 | ||||||
Other assets | 7,063,000 | ||||||
Total assets | 1,835,997,000 | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Noninterest-bearing | 262,967,000 | ||||||
Interest-bearing | 1,257,953,000 | ||||||
Total deposits | 1,520,920,000 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 1,014,000 | ||||||
Other borrowings | 109,500,000 | ||||||
Other liabilities | 27,743,000 | ||||||
Total liabilities | 1,659,177,000 | ||||||
Net identifiable assets acquired over (under) liabilities assumed | 176,820,000 | ||||||
Goodwill | 258,295,000 | ||||||
Net assets acquired over liabilities assumed | $ 435,115,000 | ||||||
Consideration: | |||||||
Common stock shares outstanding | 4,978,338 | ||||||
Purchase price per share of the SSB's common stock | $ 87.30 | ||||||
SSB common stock issued ($688,566) and cash exchanged for fractional shares ($88) | $ 434,625,000 | ||||||
Common stock issued | 434,609 | ||||||
Price per fractional share | 16 | ||||||
Cash paid for stock options outstanding | 490,000 | ||||||
Fair value of total consideration transferred | 435,115,000 | ||||||
Additional information | |||||||
Adjustment to acquired loans portfolio | 30,700,000 | ||||||
Allowance for loan losses | 20,100,000 | ||||||
Discount on trust preferred securities | 2,100,000 | ||||||
Federal Home Loan Bank, Advances, Premium | 1,000,000 | ||||||
Fair value adjustments to employee benefit plans | 8,300,000 | ||||||
Provision for loan losses | 325,000 | ||||||
Southeastern Bank Financial | As previously recorded by acquiree | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Cash and cash equivalents | 72,043,000 | ||||||
Investment securities | 591,824,000 | ||||||
Loans held for sale | 13,652,000 | ||||||
Loans, net of allowance and mark | 1,060,618,000 | ||||||
Premises and equipment | 25,419,000 | ||||||
Intangible assets | 140,000 | ||||||
OREO and repossessed assets | 580,000 | ||||||
Bank owned life insurance | 44,513,000 | ||||||
Deferred tax asset. | 16,247,000 | ||||||
Other assets | 7,545,000 | ||||||
Total assets | 1,832,581,000 | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Noninterest-bearing | 262,967,000 | ||||||
Interest-bearing | 1,257,953,000 | ||||||
Total deposits | 1,520,920,000 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 1,014,000 | ||||||
Other borrowings | 110,620,000 | ||||||
Other liabilities | 19,980,000 | ||||||
Total liabilities | 1,652,534,000 | ||||||
Net identifiable assets acquired over (under) liabilities assumed | 180,047,000 | ||||||
Net assets acquired over liabilities assumed | 180,047,000 | ||||||
Southeastern Bank Financial | Adjustments | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Investment securities | (1,770,000) | ||||||
Loans, net of allowance and mark | (10,668,000) | ||||||
Premises and equipment | (2,212,000) | ||||||
Intangible assets | 17,980,000 | ||||||
OREO and repossessed assets | (30,000) | ||||||
Deferred tax asset. | (687,000) | ||||||
Other assets | (482,000) | ||||||
Total assets | 2,131,000 | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Other borrowings | (1,120,000) | ||||||
Other liabilities | 5,553,000 | ||||||
Total liabilities | 4,433,000 | ||||||
Net identifiable assets acquired over (under) liabilities assumed | (2,302,000) | ||||||
Goodwill | 257,370,000 | ||||||
Net assets acquired over liabilities assumed | 255,068,000 | ||||||
Southeastern Bank Financial | Subsequent Fair Value Adjustments | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Premises and equipment | 870,000 | ||||||
OREO and repossessed assets | (100,000) | ||||||
Deferred tax asset. | 515,000 | ||||||
Total assets | 1,285,000 | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Other liabilities | 2,210,000 | ||||||
Total liabilities | 2,210,000 | ||||||
Net identifiable assets acquired over (under) liabilities assumed | (925,000) | ||||||
Goodwill | 925,000 | ||||||
Southeastern Bank Financial Corporation And Park Sterling Corporation | |||||||
Additional information | |||||||
Adjustment of other miscellaneous liabilities | $ 496,000 | ||||||
Merger-related costs | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 |
Investment Securities - Amortiz
Investment Securities - Amortized cost and fair value for available for sale securities (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment securities available for sale | ||||
Amortized cost | $ 1,940,763,000 | $ 1,540,650,000 | ||
Gross Unrealized Gains | 19,823,000 | 2,427,000 | ||
Gross Unrealized Losses | (4,539,000) | (26,010,000) | ||
Fair Value | 1,956,047,000 | 1,517,067,000 | ||
Gross realized gains | 6,030,000 | 31,000 | $ 1,832,000 | |
Gross realized losses | 3,319,000 | 686,000 | 411,000 | |
Net realized gain | 2,711,000 | (655,000) | $ 1,421,000 | |
Government-sponsored entities debt | ||||
Investment securities available for sale | ||||
Amortized cost | 25,356,000 | 48,982,000 | ||
Gross Unrealized Gains | 585,000 | 21,000 | ||
Gross Unrealized Losses | (752,000) | |||
Fair Value | 25,941,000 | 48,251,000 | ||
State and municipal obligations | ||||
Investment securities available for sale | ||||
Amortized cost | 204,150,000 | 200,184,000 | ||
Gross Unrealized Gains | 5,029,000 | 1,709,000 | ||
Gross Unrealized Losses | (764,000) | (1,125,000) | ||
Fair Value | 208,415,000 | 200,768,000 | ||
Mortgage-backed securities | ||||
Investment securities available for sale | ||||
Amortized cost | 1,711,257,000 | 1,291,484,000 | ||
Gross Unrealized Gains | 14,209,000 | 697,000 | ||
Gross Unrealized Losses | (3,775,000) | (24,133,000) | ||
Fair Value | 1,721,691,000 | $ 1,268,048,000 | ||
VISA Class B Shares | ||||
Investment securities available for sale | ||||
Net realized gain | $ 5,400,000 | 2,700,000 | ||
Mortgage-backed securities issued by private label holdings | ||||
Investment securities available for sale | ||||
Fair Value | $ 0 |
Investment Securities - Amort_2
Investment Securities - Amortized cost and carrying value of other investment securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other investment securities | |||
Carrying Value | $ 49,124 | $ 25,604 | |
Impairment on other investment securities | 0 | ||
Amortized Cost | |||
Due in one year or less | 7,267 | ||
Due after one year through five years | 54,662 | ||
Due after five years through ten years | 442,830 | ||
Due after ten years | 1,436,004 | ||
Fair Value | 1,940,763 | 1,540,650 | |
Fair Value | |||
Due in one year or less | 7,315 | ||
Due after one year through five years | 55,286 | ||
Due after five years through ten years | 447,167 | ||
Due after ten years | 1,446,279 | ||
Fair Value | 1,956,047 | 1,517,067 | |
Information with respect to sales of available-for-sale securities | |||
Sale proceeds | 242,733 | 73,054 | $ 374,938 |
Gross realized gains | 6,030 | 31 | 1,832 |
Gross realized losses | (3,319) | (686) | (411) |
Information with respect to sales of Held to Maturity | |||
Proceeds from Sale of Held-to-maturity Securities | 0 | 0 | $ 0 |
Investment in Federal Home Loan Bank Stock | |||
Other investment securities | |||
Carrying Value | 43,044 | 19,524 | |
Investment in unconsolidated subsidiaries | |||
Other investment securities | |||
Carrying Value | 3,563 | 3,563 | |
Other nonmarketable investment securities | |||
Other investment securities | |||
Carrying Value | $ 2,517 | $ 2,517 |
Investment Securities - Securit
Investment Securities - Securities with gross unrealized losses (Details) $ in Thousands | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) |
Investment Securities | ||
Number of securities with gross unrealized loss | item | 143 | |
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | $ 3,186 | $ 6,042 |
Twelve Months or More | 1,353 | 19,968 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 503,728 | 456,013 |
Twelve Months or More | 141,982 | 802,413 |
Government-sponsored entities debt | ||
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 100 | |
Twelve Months or More | 652 | |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 10,571 | |
Twelve Months or More | 32,959 | |
State and municipal obligations | ||
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 764 | 760 |
Twelve Months or More | 365 | |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 42,070 | 40,387 |
Twelve Months or More | 14,231 | |
Mortgage-backed securities | ||
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 2,422 | 5,182 |
Twelve Months or More | 1,353 | 18,951 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 461,658 | 405,055 |
Twelve Months or More | $ 141,982 | $ 755,223 |
Investment Securities - Additio
Investment Securities - Additional disclosures (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Additional disclosures | ||
Carrying value of investment securities pledged to secure public funds deposits and for other purposes required and permitted by law | $ 726.1 | $ 888.8 |
Carrying amount of the securities pledged to collateralize repurchase agreements | $ 242.2 | $ 205.3 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of non acquired loans (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans and Allowance for Loan Losses | ||||
Loans, net | $ 11,313,113,000 | $ 10,962,037,000 | ||
Deferred fees | 751,000 | 697,000 | ||
Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 9,252,831,000 | 7,933,286,000 | $ 6,492,155,000 | |
Less allowance for non-acquired loan losses | (56,927,000) | (51,194,000) | (43,448,000) | $ (36,960,000) |
Loans, net | 9,195,904,000 | 7,882,092,000 | ||
Commercial non-owner occupied real estate | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 2,779,498,000 | 2,256,996,000 | ||
Commercial non-owner occupied real estate | Construction and land development | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 968,360,000 | 841,445,000 | 830,875,000 | |
Less allowance for non-acquired loan losses | (6,104,000) | (5,682,000) | (5,921,000) | (4,091,000) |
Commercial non-owner occupied real estate | Other commercial non-owner occupied real estate | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 1,811,138,000 | 1,415,551,000 | 1,008,893,000 | |
Less allowance for non-acquired loan losses | (10,699,000) | (8,754,000) | (6,525,000) | (4,980,000) |
Consumer loans | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 2,637,467,000 | 2,431,413,000 | ||
Consumer loans | Home equity loans | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 518,628,000 | 495,148,000 | 437,642,000 | |
Less allowance for non-acquired loan losses | (3,188,000) | (3,434,000) | (3,250,000) | (3,211,000) |
Commercial and industrial | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 1,280,859,000 | 1,054,952,000 | 815,187,000 | |
Less allowance for non-acquired loan losses | (8,339,000) | (7,454,000) | (5,488,000) | (4,842,000) |
Other income producing property | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 218,617,000 | 214,353,000 | 193,847,000 | |
Less allowance for non-acquired loan losses | (1,336,000) | (1,446,000) | (1,375,000) | (1,542,000) |
Consumer | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 538,481,000 | 448,664,000 | 378,985,000 | |
Less allowance for non-acquired loan losses | $ (3,947,000) | $ (3,101,000) | $ (2,788,000) | $ (2,350,000) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Summary of acquired non credit impaired loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 |
Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | $ 361,846 | $ 489,723 | $ 623,430 | $ 78,967 | |
Less allowance for loan losses | (5,064) | (4,604) | (4,627) | $ (3,395) | |
Acquired loans, net | 356,782 | 485,119 | 618,803 | ||
Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 1,760,427 | 2,594,826 | |||
Acquired credit impaired loans accounted under FASB 310 30 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 361,846 | 489,723 | |||
Less allowance for loan losses | (5,064) | (4,604) | |||
Acquired loans, net | 356,782 | 485,119 | |||
Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 1,760,427 | 2,594,826 | |||
Residential real estate | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 163,359 | 207,482 | |||
Residential real estate | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 163,359 | 207,482 | 260,787 | ||
Less allowance for loan losses | (2,555) | (2,246) | (3,553) | (2,419) | |
Residential real estate | Acquired credit impaired loans accounted under FASB 310 30 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 163,359 | 207,482 | |||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 481,010 | 844,323 | |||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 307,193 | 421,841 | |||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 307,193 | 421,841 | |||
Consumer loans | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 35,488 | 42,492 | 51,453 | ||
Less allowance for loan losses | (539) | (761) | (461) | (558) | |
Consumer loans | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 685,163 | 871,238 | |||
Consumer loans | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 774,647 | 983,015 | |||
Commercial and industrial | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 7,029 | 10,043 | |||
Commercial and industrial | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 7,029 | 10,043 | 26,946 | ||
Less allowance for loan losses | (24) | (79) | (145) | (238) | |
Commercial and industrial | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 101,880 | 212,537 | |||
Commercial and industrial | Acquired credit impaired loans accounted under FASB 310 30 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 7,029 | 10,043 | |||
Commercial and industrial | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 101,880 | 212,537 | |||
Other income producing property | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 95,697 | 133,110 | |||
Other income producing property | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 95,697 | 133,110 | |||
Consumer | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 35,488 | 42,492 | |||
Consumer | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 35,488 | 42,492 | |||
Consumer | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 89,484 | 111,777 | |||
Consumer | Acquired credit impaired loans accounted under FASB 310 30 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 35,488 | 42,492 | |||
Consumer | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 89,484 | 111,777 | |||
Commercial loans | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 985,780 | 1,611,811 | |||
Construction and land development | Commercial non-owner occupied real estate | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 25,032 | 32,942 | 49,649 | ||
Less allowance for loan losses | (569) | (717) | (180) | (139) | |
Construction and land development | Commercial non-owner occupied real estate | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 33,569 | 165,070 | |||
Construction and land development | Commercial non-owner occupied real estate | Acquired credit impaired loans accounted under FASB 310 30 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 25,032 | 32,942 | |||
Construction and land development | Commercial non-owner occupied real estate | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 33,569 | 165,070 | |||
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 130,938 | 196,764 | 234,595 | ||
Less allowance for loan losses | (1,377) | (801) | $ (288) | $ (41) | |
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 447,441 | 679,253 | |||
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired credit impaired loans accounted under FASB 310 30 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 130,938 | 196,764 | |||
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 447,441 | 679,253 | |||
Home equity loans | Consumer loans | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 188,732 | 242,425 | |||
Home equity loans | Consumer loans | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 188,732 | 242,425 | |||
Other Consumer | Consumer loans | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 89,484 | 111,777 | |||
Consumer Owner Occupied Loans | Consumer loans | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 496,431 | 628,813 | |||
Consumer Owner Occupied Loans | Consumer loans | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | $ 496,431 | $ 628,813 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Table of loan payment estimates (Details) - USD ($) $ in Thousands | Nov. 30, 2017 | Jan. 03, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Acquired credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Allowance for loan losses on acquired loans | $ (5,064) | $ (4,604) | $ (4,627) | $ (3,395) | ||
Contractual principal and interest | $ 113,584 | 452,818 | 626,691 | |||
Non-accretable difference | (27,248) | (13,938) | (24,818) | |||
Cash flows expected to be collected | 86,336 | 438,880 | 601,873 | |||
Accretable Yield | (82,098) | (116,754) | ||||
Accretable difference | (7,369) | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 78,967 | 361,846 | 489,723 | 623,430 | ||
Acquired loans, net | 356,782 | 485,119 | 618,803 | |||
Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 1,760,427 | 2,594,826 | ||||
After fair value adjustment | 1,800 | |||||
Acquired non-credit impaired loans accounted under FASB 310 20 | Park Sterling Corporation | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Contractual principal and interest | 2,200,000 | |||||
After fair value adjustment | 2,100,000 | |||||
Fair value adjustment | $ 46,500,000 | |||||
Acquired non-credit impaired loans accounted under FASB 310 20 | Southeastern Bank Financial | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Contractual principal and interest | $ 78,963 | |||||
Non-accretable difference | (13,072) | |||||
Cash flows expected to be collected | 65,891 | |||||
Accretable difference | (4,910) | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 60,981 | |||||
Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Allowance for loan losses on acquired loans | (5,064) | (4,604) | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 361,846 | 489,723 | ||||
Acquired loans, net | 356,782 | 485,119 | ||||
Acquired loans accounted under FASB ASC 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Contractual principal and interest | 1,800,000 | 2,600,000 | ||||
After fair value adjustment | 2,600,000 | |||||
Fair value adjustment | 20,300 | 33,400 | ||||
Acquired credit impaired and non-impaired loans accounted under FASB ASC Topic 310-20 | Southeastern Bank Financial | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Contractual principal and interest | 1,000,000 | |||||
After fair value adjustment | 986,500 | |||||
Fair value adjustment | $ 18,800 | |||||
Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 1,760,427 | 2,594,826 | ||||
Residential real estate | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 163,359 | 207,482 | ||||
Residential real estate | Acquired credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Allowance for loan losses on acquired loans | (2,555) | (2,246) | (3,553) | (2,419) | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 163,359 | 207,482 | 260,787 | |||
Residential real estate | Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 163,359 | 207,482 | ||||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 481,010 | 844,323 | ||||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 307,193 | 421,841 | ||||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 307,193 | 421,841 | ||||
Consumer loans | Acquired credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Allowance for loan losses on acquired loans | (539) | (761) | (461) | (558) | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 35,488 | 42,492 | 51,453 | |||
Consumer loans | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 685,163 | 871,238 | ||||
Consumer loans | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 774,647 | 983,015 | ||||
Commercial and industrial | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 7,029 | 10,043 | ||||
Commercial and industrial | Acquired credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Allowance for loan losses on acquired loans | (24) | (79) | (145) | (238) | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 7,029 | 10,043 | 26,946 | |||
Commercial and industrial | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 101,880 | 212,537 | ||||
Commercial and industrial | Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 7,029 | 10,043 | ||||
Commercial and industrial | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 101,880 | 212,537 | ||||
Other income producing property | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 95,697 | 133,110 | ||||
Other income producing property | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 95,697 | 133,110 | ||||
Consumer | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 35,488 | 42,492 | ||||
Consumer | Acquired credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 35,488 | 42,492 | ||||
Consumer | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 89,484 | 111,777 | ||||
Consumer | Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 35,488 | 42,492 | ||||
Consumer | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 89,484 | 111,777 | ||||
Commercial loans | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 985,780 | 1,611,811 | ||||
Construction and land development | Commercial non-owner occupied real estate | Acquired credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Allowance for loan losses on acquired loans | (569) | (717) | (180) | (139) | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 25,032 | 32,942 | 49,649 | |||
Construction and land development | Commercial non-owner occupied real estate | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 33,569 | 165,070 | ||||
Construction and land development | Commercial non-owner occupied real estate | Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 25,032 | 32,942 | ||||
Construction and land development | Commercial non-owner occupied real estate | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 33,569 | 165,070 | ||||
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Allowance for loan losses on acquired loans | (1,377) | (801) | (288) | $ (41) | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 130,938 | 196,764 | $ 234,595 | |||
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 447,441 | 679,253 | ||||
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 130,938 | 196,764 | ||||
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 447,441 | 679,253 | ||||
Home equity loans | Consumer loans | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 188,732 | 242,425 | ||||
Home equity loans | Consumer loans | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 188,732 | 242,425 | ||||
Other Consumer | Consumer loans | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 89,484 | 111,777 | ||||
Consumer Owner Occupied Loans | Consumer loans | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 496,431 | 628,813 | ||||
Consumer Owner Occupied Loans | Consumer loans | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | $ 496,431 | $ 628,813 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Changes in the carrying value of acquired credit impaired loans (Details) | Nov. 30, 2017USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 03, 2017USD ($) |
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||||
Decline in accretable yield balance | $ 34,700,000 | |||||
Percentage of loss adjustment based on most current collateral value | 90 | |||||
Maximum | ||||||
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||||
Threshold limit of loans for risk assessment by loan officers | $ 500,000 | |||||
Minimum | ||||||
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||||
Threshold limit of loans for risk assessment by loan officers | $ 100,000 | |||||
Acquired credit impaired loans | ||||||
Changes in the carrying value of acquired loans at the acquisition date | ||||||
Balance at the beginning of the period | 485,119,000 | $ 618,803,000 | ||||
Net reductions for payments, foreclosures, and accretion | (127,877,000) | (133,707,000) | ||||
Change in the allowance for loan losses on acquired loans | 460,000 | (23,000) | ||||
Balance at the end of the period | 356,782,000 | 485,119,000 | $ 618,803,000 | |||
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||||
Balance at beginning of period | 116,754,000 | 133,096,000 | 155,379,000 | |||
Park Sterling Corporation ("Park Sterling") acquisition Day 1 adjustment | (1,460,000) | 8,829,000 | ||||
Contractual interest income | (26,515,000) | (33,115,000) | (36,690,000) | |||
Accretion on acquired credit impaired loans | (17,813,000) | (19,004,000) | (20,841,000) | |||
Reclass of nonaccretable difference due to improvement in expected cash flows | 9,826,000 | 37,501,000 | 21,987,000 | |||
Other changes, net | (154,000) | (264,000) | (478,000) | |||
Balance at end of period | 82,098,000 | 116,754,000 | 133,096,000 | |||
Accretion income | 44,300,000 | |||||
Improved expected cash flows | 9,800,000 | |||||
Contractual principal and interest | $ 113,584,000 | 452,818,000 | $ 626,691,000 | |||
Acquired credit impaired loans | Park Sterling Corporation | ||||||
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||||
Addition from acquisition | $ 4,910,000 | |||||
Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||||
After fair value adjustment | $ 1,800,000 | |||||
Acquired non-credit impaired loans accounted under FASB 310 20 | Southeastern Bank Financial | ||||||
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||||
Contractual principal and interest | $ 78,963,000 | |||||
Acquired non-credit impaired loans accounted under FASB 310 20 | Park Sterling Corporation | ||||||
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||||
Contractual principal and interest | 2,200,000,000 | |||||
After fair value adjustment | 2,100,000,000 | |||||
Fair value adjustment | $ 46,500,000,000 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Aggregated analysis of the changes in allowance for loan losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in allowance for loan losses | |||
Balance at beginning of period | $ 55,798 | $ 48,075 | $ 40,355 |
Loans charged-off | (9,775) | (8,226) | (6,779) |
Recoveries of loans previously charged off | 3,914 | 3,300 | 3,430 |
Net charge-offs | (5,861) | (4,926) | (3,349) |
Reduction due to loan removals | (723) | (1,134) | (821) |
Balance at end of period | 61,991 | 55,798 | 48,075 |
Non-acquired loans | |||
Changes in allowance for loan losses | |||
Balance at beginning of period | 51,194 | 43,448 | 36,960 |
Loans charged-off | (6,917) | (6,012) | (5,149) |
Recoveries of loans previously charged off | 3,367 | 2,995 | 2,953 |
Net charge-offs | (3,550) | (3,017) | (2,196) |
Provision for loan losses charged to operations | 9,283 | 10,763 | 8,684 |
Balance at end of period | 56,927 | 51,194 | 43,448 |
Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (2,858) | (2,214) | (1,630) |
Recoveries of loans previously charged off | 547 | 305 | 477 |
Net charge-offs | (2,311) | (1,909) | (1,153) |
Provision for loan losses charged to operations | 2,311 | 1,909 | 1,153 |
Acquired credit impaired loans | |||
Changes in allowance for loan losses | |||
Balance at beginning of period | 4,604 | 4,627 | 3,395 |
Reduction due to loan removals | (723) | (1,134) | (821) |
Balance at end of period | 5,064 | 4,604 | 4,627 |
Residential real estate | Acquired credit impaired loans | |||
Changes in allowance for loan losses | |||
Reduction due to loan removals | (407) | (415) | (528) |
Commercial owner occupied real estate loan | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (87) | (659) | |
Recoveries of loans previously charged off | 174 | 145 | 220 |
Provision for loan losses charged to operations | 1,125 | 1,755 | (114) |
Consumer loans | Acquired credit impaired loans | |||
Changes in allowance for loan losses | |||
Reduction due to loan removals | (3) | (14) | |
Commercial and industrial | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (622) | (500) | (776) |
Recoveries of loans previously charged off | 351 | 256 | 343 |
Provision for loan losses charged to operations | 1,156 | 2,210 | 1,079 |
Commercial and industrial | Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (1,289) | (1,108) | (71) |
Recoveries of loans previously charged off | 190 | 63 | 6 |
Provision for loan losses charged to operations | 1,099 | 1,045 | 65 |
Commercial and industrial | Acquired credit impaired loans | |||
Changes in allowance for loan losses | |||
Reduction due to loan removals | (315) | (577) | (157) |
Other income producing property | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (31) | (2) | (51) |
Recoveries of loans previously charged off | 94 | 21 | 85 |
Provision for loan losses charged to operations | (173) | 52 | (201) |
Other income producing property | Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (26) | ||
Recoveries of loans previously charged off | 71 | 8 | |
Provision for loan losses charged to operations | (45) | (8) | |
Consumer | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (5,843) | (4,480) | (3,261) |
Recoveries of loans previously charged off | 1,178 | 811 | 689 |
Provision for loan losses charged to operations | 5,511 | 3,982 | 3,010 |
Consumer | Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (444) | (465) | (468) |
Recoveries of loans previously charged off | 51 | 68 | 23 |
Provision for loan losses charged to operations | 393 | 397 | 445 |
Other loans | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Provision for loan losses charged to operations | 96 | (264) | 203 |
Construction and land development | Commercial non-owner occupied real estate | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (78) | (76) | (546) |
Recoveries of loans previously charged off | 1,016 | 1,340 | 968 |
Provision for loan losses charged to operations | (516) | (1,503) | 1,408 |
Construction and land development | Commercial non-owner occupied real estate | Acquired credit impaired loans | |||
Changes in allowance for loan losses | |||
Reduction due to loan removals | (120) | (122) | |
Construction and land development | Commercial loans | Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (44) | (107) | (82) |
Recoveries of loans previously charged off | 3 | 8 | 4 |
Provision for loan losses charged to operations | 41 | 99 | 78 |
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (3) | ||
Recoveries of loans previously charged off | 76 | 11 | 132 |
Provision for loan losses charged to operations | 1,872 | 2,218 | 1,413 |
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired credit impaired loans | |||
Changes in allowance for loan losses | |||
Reduction due to loan removals | (1) | (19) | |
Other commercial non-owner occupied real estate | Commercial loans | Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (786) | (28) | |
Recoveries of loans previously charged off | 2 | ||
Provision for loan losses charged to operations | 786 | 28 | (2) |
Home equity loans | Consumer loans | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (203) | (215) | (330) |
Recoveries of loans previously charged off | 265 | 279 | 210 |
Provision for loan losses charged to operations | (308) | 120 | 159 |
Home equity loans | Consumer loans | Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (263) | (436) | (859) |
Recoveries of loans previously charged off | 206 | 102 | 393 |
Provision for loan losses charged to operations | 57 | 334 | 466 |
Consumer Owner Occupied Loans | Consumer loans | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (50) | (80) | (185) |
Recoveries of loans previously charged off | 213 | 132 | 306 |
Provision for loan losses charged to operations | 520 | 2,193 | 1,727 |
Consumer Owner Occupied Loans | Consumer loans | Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (6) | (70) | (150) |
Recoveries of loans previously charged off | 26 | 64 | 41 |
Provision for loan losses charged to operations | $ (20) | $ 6 | $ 109 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Disaggregated analysis of activity in for allowances for non acquired loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan losses: | |||
Charge-offs | $ (9,775) | $ (8,226) | $ (6,779) |
Recoveries | 3,914 | 3,300 | 3,430 |
Non-acquired loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 51,194 | 43,448 | 36,960 |
Charge-offs | (6,917) | (6,012) | (5,149) |
Recoveries | 3,367 | 2,995 | 2,953 |
Provision (benefit) | 9,283 | 10,763 | 8,684 |
Balance at end of period | 56,927 | 51,194 | 43,448 |
Loans individually evaluated for impairment | 1,346 | 1,628 | 1,624 |
Loans collectively evaluated for impairment | 55,581 | 49,566 | 41,824 |
Loans: | |||
Loans individually evaluated for impairment | 58,532 | 57,018 | 63,423 |
Loans collectively evaluated for impairment | 9,194,299 | 7,876,268 | 6,428,732 |
Total loans | 9,252,831 | 7,933,286 | 6,492,155 |
Acquired non-credit impaired loans | |||
Allowance for loan losses: | |||
Charge-offs | (2,858) | (2,214) | (1,630) |
Recoveries | 547 | 305 | 477 |
Provision (benefit) | 2,311 | 1,909 | 1,153 |
Loans: | |||
Loans collectively evaluated for impairment | 1,760,427 | 2,594,826 | 3,507,907 |
Total loans | 1,760,427 | 2,594,826 | 3,507,907 |
Commercial non-owner occupied real estate | Non-acquired loans | |||
Loans: | |||
Total loans | 2,779,498 | 2,256,996 | |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | |||
Allowance for loan losses: | |||
Balance at beginning of period | 5,682 | 5,921 | 4,091 |
Charge-offs | (78) | (76) | (546) |
Recoveries | 1,016 | 1,340 | 968 |
Provision (benefit) | (516) | (1,503) | 1,408 |
Balance at end of period | 6,104 | 5,682 | 5,921 |
Loans individually evaluated for impairment | 617 | 788 | 1,063 |
Loans collectively evaluated for impairment | 5,487 | 4,894 | 4,858 |
Loans: | |||
Loans individually evaluated for impairment | 35,201 | 37,913 | 43,230 |
Loans collectively evaluated for impairment | 933,159 | 803,532 | 787,645 |
Total loans | 968,360 | 841,445 | 830,875 |
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | |||
Allowance for loan losses: | |||
Balance at beginning of period | 8,754 | 6,525 | 4,980 |
Charge-offs | (3) | ||
Recoveries | 76 | 11 | 132 |
Provision (benefit) | 1,872 | 2,218 | 1,413 |
Balance at end of period | 10,699 | 8,754 | 6,525 |
Loans individually evaluated for impairment | 70 | 125 | |
Loans collectively evaluated for impairment | 10,699 | 8,684 | 6,400 |
Loans: | |||
Loans individually evaluated for impairment | 379 | 1,025 | 1,375 |
Loans collectively evaluated for impairment | 1,810,759 | 1,414,526 | 1,007,518 |
Total loans | 1,811,138 | 1,415,551 | 1,008,893 |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | |||
Loans: | |||
Loans collectively evaluated for impairment | 447,441 | 679,253 | 817,166 |
Total loans | 447,441 | 679,253 | 817,166 |
Commercial owner occupied real estate loan | Non-acquired loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 9,369 | 8,128 | 8,022 |
Charge-offs | (87) | (659) | |
Recoveries | 174 | 145 | 220 |
Provision (benefit) | 1,125 | 1,755 | (114) |
Balance at end of period | 10,581 | 9,369 | 8,128 |
Loans individually evaluated for impairment | 24 | 27 | 64 |
Loans collectively evaluated for impairment | 10,557 | 9,342 | 8,064 |
Loans: | |||
Loans individually evaluated for impairment | 6,575 | 4,142 | 5,642 |
Loans collectively evaluated for impairment | 1,777,442 | 1,513,409 | 1,257,134 |
Total loans | 1,784,017 | 1,517,551 | 1,262,776 |
Consumer loans | Non-acquired loans | |||
Loans: | |||
Total loans | 2,637,467 | 2,431,413 | |
Consumer loans | Non-acquired loans | Home equity loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 3,434 | 3,250 | 3,211 |
Charge-offs | (203) | (215) | (330) |
Recoveries | 265 | 279 | 210 |
Provision (benefit) | (308) | 120 | 159 |
Balance at end of period | 3,188 | 3,434 | 3,250 |
Loans individually evaluated for impairment | 132 | 142 | 135 |
Loans collectively evaluated for impairment | 3,056 | 3,292 | 3,115 |
Loans: | |||
Loans individually evaluated for impairment | 2,461 | 2,826 | 3,011 |
Loans collectively evaluated for impairment | 516,167 | 492,322 | 434,631 |
Total loans | 518,628 | 495,148 | 437,642 |
Consumer loans | Non-acquired loans | Other Consumer | |||
Loans: | |||
Total loans | 13,892 | 9,357 | |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 11,913 | 9,668 | 7,820 |
Charge-offs | (50) | (80) | (185) |
Recoveries | 213 | 132 | 306 |
Provision (benefit) | 520 | 2,193 | 1,727 |
Balance at end of period | 12,596 | 11,913 | 9,668 |
Loans individually evaluated for impairment | 102 | 41 | 37 |
Loans collectively evaluated for impairment | 12,494 | 11,872 | 9,631 |
Loans: | |||
Loans individually evaluated for impairment | 5,141 | 6,761 | 5,632 |
Loans collectively evaluated for impairment | 2,113,698 | 1,929,504 | 1,524,628 |
Total loans | 2,118,839 | 1,936,265 | 1,530,260 |
Consumer loans | Acquired non-credit impaired loans | Home equity loans | |||
Allowance for loan losses: | |||
Charge-offs | (263) | (436) | (859) |
Recoveries | 206 | 102 | 393 |
Provision (benefit) | 57 | 334 | 466 |
Loans: | |||
Loans collectively evaluated for impairment | 188,732 | 242,425 | 320,591 |
Total loans | 188,732 | 242,425 | 320,591 |
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | |||
Allowance for loan losses: | |||
Charge-offs | (6) | (70) | (150) |
Recoveries | 26 | 64 | 41 |
Provision (benefit) | (20) | 6 | 109 |
Loans: | |||
Loans collectively evaluated for impairment | 496,431 | 628,813 | 710,611 |
Total loans | 496,431 | 628,813 | 710,611 |
Commercial and industrial | Non-acquired loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 7,454 | 5,488 | 4,842 |
Charge-offs | (622) | (500) | (776) |
Recoveries | 351 | 256 | 343 |
Provision (benefit) | 1,156 | 2,210 | 1,079 |
Balance at end of period | 8,339 | 7,454 | 5,488 |
Loans individually evaluated for impairment | 366 | 416 | 15 |
Loans collectively evaluated for impairment | 7,973 | 7,038 | 5,473 |
Loans: | |||
Loans individually evaluated for impairment | 6,578 | 1,291 | 1,156 |
Loans collectively evaluated for impairment | 1,274,281 | 1,053,661 | 814,031 |
Total loans | 1,280,859 | 1,054,952 | 815,187 |
Commercial and industrial | Acquired non-credit impaired loans | |||
Allowance for loan losses: | |||
Charge-offs | (1,289) | (1,108) | (71) |
Recoveries | 190 | 63 | 6 |
Provision (benefit) | 1,099 | 1,045 | 65 |
Loans: | |||
Loans collectively evaluated for impairment | 101,880 | 212,537 | 398,696 |
Total loans | 101,880 | 212,537 | 398,696 |
Other income producing property | Non-acquired loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 1,446 | 1,375 | 1,542 |
Charge-offs | (31) | (2) | (51) |
Recoveries | 94 | 21 | 85 |
Provision (benefit) | (173) | 52 | (201) |
Balance at end of period | 1,336 | 1,446 | 1,375 |
Loans individually evaluated for impairment | 50 | 142 | 178 |
Loans collectively evaluated for impairment | 1,286 | 1,304 | 1,197 |
Loans: | |||
Loans individually evaluated for impairment | 2,024 | 2,872 | 3,138 |
Loans collectively evaluated for impairment | 216,593 | 211,481 | 190,709 |
Total loans | 218,617 | 214,353 | 193,847 |
Other income producing property | Acquired non-credit impaired loans | |||
Allowance for loan losses: | |||
Charge-offs | (26) | ||
Recoveries | 71 | 8 | |
Provision (benefit) | (45) | (8) | |
Loans: | |||
Loans collectively evaluated for impairment | 95,697 | 133,110 | 196,669 |
Total loans | 95,697 | 133,110 | 196,669 |
Consumer | Non-acquired loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 3,101 | 2,788 | 2,350 |
Charge-offs | (5,843) | (4,480) | (3,261) |
Recoveries | 1,178 | 811 | 689 |
Provision (benefit) | 5,511 | 3,982 | 3,010 |
Balance at end of period | 3,947 | 3,101 | 2,788 |
Loans individually evaluated for impairment | 55 | 2 | 7 |
Loans collectively evaluated for impairment | 3,892 | 3,099 | 2,781 |
Loans: | |||
Loans individually evaluated for impairment | 173 | 188 | 239 |
Loans collectively evaluated for impairment | 538,308 | 448,476 | 378,746 |
Total loans | 538,481 | 448,664 | 378,985 |
Consumer | Acquired non-credit impaired loans | |||
Allowance for loan losses: | |||
Charge-offs | (444) | (465) | (468) |
Recoveries | 51 | 68 | 23 |
Provision (benefit) | 393 | 397 | 445 |
Loans: | |||
Loans collectively evaluated for impairment | 89,484 | 111,777 | 137,710 |
Total loans | 89,484 | 111,777 | 137,710 |
Commercial loans | Non-acquired loans | |||
Loans: | |||
Total loans | 6,062,991 | 5,043,852 | |
Commercial loans | Acquired non-credit impaired loans | Construction and land development | |||
Allowance for loan losses: | |||
Charge-offs | (44) | (107) | (82) |
Recoveries | 3 | 8 | 4 |
Provision (benefit) | 41 | 99 | 78 |
Loans: | |||
Loans collectively evaluated for impairment | 33,569 | 165,070 | 403,357 |
Total loans | 33,569 | 165,070 | 403,357 |
Commercial loans | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | |||
Allowance for loan losses: | |||
Charge-offs | (786) | (28) | |
Recoveries | 2 | ||
Provision (benefit) | 786 | 28 | (2) |
Loans: | |||
Loans collectively evaluated for impairment | 307,193 | 421,841 | 521,818 |
Total loans | 307,193 | 421,841 | 521,818 |
Other loans | |||
Loans: | |||
Loans collectively evaluated for impairment | 1,289 | ||
Total loans | 1,289 | ||
Other loans | Non-acquired loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 41 | 305 | 102 |
Provision (benefit) | 96 | (264) | 203 |
Balance at end of period | 137 | 41 | 305 |
Loans collectively evaluated for impairment | 137 | 41 | 305 |
Loans: | |||
Loans collectively evaluated for impairment | 13,892 | 9,357 | 33,690 |
Total loans | $ 13,892 | $ 9,357 | $ 33,690 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Disaggregated analysis of activity in the allowance for acquired credit impaired loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | |
Allowance for loan losses: | ||||
Provision (benefit) for loan losses | $ 12,777 | $ 13,783 | $ 11,890 | |
Reduction due to loan removals | (723) | (1,134) | (821) | |
Non-acquired loans | ||||
Allowance for loan losses: | ||||
Provision (benefit) for loan losses | 9,283 | 10,763 | 8,684 | |
Loans individually evaluated for impairment | 1,346 | 1,628 | 1,624 | |
Loans collectively evaluated for impairment | 55,581 | 49,566 | 41,824 | |
Loans: | ||||
Loans individually evaluated for impairment | 58,532 | 57,018 | 63,423 | |
Loans collectively evaluated for impairment | 9,194,299 | 7,876,268 | 6,428,732 | |
Acquired credit impaired loans | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 4,604 | 4,627 | 3,395 | |
Provision (benefit) for loan losses | 1,183 | 1,111 | 2,053 | |
Reduction due to loan removals | (723) | (1,134) | (821) | |
Balance at the end of the period | 5,064 | 4,604 | 4,627 | |
Loans collectively evaluated for impairment | 5,064 | 4,604 | 4,627 | |
Loans: | ||||
Loans collectively evaluated for impairment | 361,846 | 489,723 | 623,430 | |
Carrying value | 361,846 | 489,723 | 623,430 | $ 78,967 |
Acquired non-credit impaired loans | ||||
Allowance for loan losses: | ||||
Provision (benefit) for loan losses | 2,311 | 1,909 | 1,153 | |
Loans: | ||||
Loans collectively evaluated for impairment | 1,760,427 | 2,594,826 | 3,507,907 | |
Carrying value | 1,760,427 | 2,594,826 | ||
Residential real estate | ||||
Loans: | ||||
Carrying value | 163,359 | 207,482 | ||
Residential real estate | Acquired credit impaired loans | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 2,246 | 3,553 | 2,419 | |
Provision (benefit) for loan losses | 716 | (892) | 1,662 | |
Reduction due to loan removals | (407) | (415) | (528) | |
Balance at the end of the period | 2,555 | 2,246 | 3,553 | |
Loans collectively evaluated for impairment | 2,555 | 2,246 | 3,553 | |
Loans: | ||||
Loans collectively evaluated for impairment | 163,359 | 207,482 | 260,787 | |
Carrying value | 163,359 | 207,482 | 260,787 | |
Commercial non-owner occupied real estate | Construction and land development | Non-acquired loans | ||||
Allowance for loan losses: | ||||
Loans individually evaluated for impairment | 617 | 788 | 1,063 | |
Loans collectively evaluated for impairment | 5,487 | 4,894 | 4,858 | |
Loans: | ||||
Loans individually evaluated for impairment | 35,201 | 37,913 | 43,230 | |
Loans collectively evaluated for impairment | 933,159 | 803,532 | 787,645 | |
Commercial non-owner occupied real estate | Construction and land development | Acquired credit impaired loans | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 717 | 180 | 139 | |
Provision (benefit) for loan losses | (148) | 657 | 163 | |
Reduction due to loan removals | (120) | (122) | ||
Balance at the end of the period | 569 | 717 | 180 | |
Loans collectively evaluated for impairment | 569 | 717 | 180 | |
Loans: | ||||
Loans collectively evaluated for impairment | 25,032 | 32,942 | 49,649 | |
Carrying value | 25,032 | 32,942 | 49,649 | |
Commercial non-owner occupied real estate | Construction and land development | Acquired non-credit impaired loans | ||||
Loans: | ||||
Carrying value | 33,569 | 165,070 | ||
Commercial non-owner occupied real estate | Other commercial non-owner occupied real estate | Non-acquired loans | ||||
Allowance for loan losses: | ||||
Loans individually evaluated for impairment | 70 | 125 | ||
Loans collectively evaluated for impairment | 10,699 | 8,684 | 6,400 | |
Loans: | ||||
Loans individually evaluated for impairment | 379 | 1,025 | 1,375 | |
Loans collectively evaluated for impairment | 1,810,759 | 1,414,526 | 1,007,518 | |
Commercial non-owner occupied real estate | Other commercial non-owner occupied real estate | Acquired credit impaired loans | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 801 | 288 | 41 | |
Provision (benefit) for loan losses | 577 | 532 | 247 | |
Reduction due to loan removals | (1) | (19) | ||
Balance at the end of the period | 1,377 | 801 | 288 | |
Loans collectively evaluated for impairment | 1,377 | 801 | 288 | |
Loans: | ||||
Loans collectively evaluated for impairment | 130,938 | 196,764 | 234,595 | |
Carrying value | 130,938 | 196,764 | 234,595 | |
Commercial non-owner occupied real estate | Other commercial non-owner occupied real estate | Acquired non-credit impaired loans | ||||
Loans: | ||||
Loans collectively evaluated for impairment | 447,441 | 679,253 | 817,166 | |
Carrying value | 447,441 | 679,253 | ||
Consumer loans | Acquired credit impaired loans | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 761 | 461 | 558 | |
Provision (benefit) for loan losses | (222) | 303 | (83) | |
Reduction due to loan removals | (3) | (14) | ||
Balance at the end of the period | 539 | 761 | 461 | |
Loans collectively evaluated for impairment | 539 | 761 | 461 | |
Loans: | ||||
Loans collectively evaluated for impairment | 35,488 | 42,492 | 51,453 | |
Carrying value | 35,488 | 42,492 | 51,453 | |
Consumer loans | Acquired non-credit impaired loans | ||||
Loans: | ||||
Carrying value | 774,647 | 983,015 | ||
Consumer loans | Home equity loans | Non-acquired loans | ||||
Allowance for loan losses: | ||||
Loans individually evaluated for impairment | 132 | 142 | 135 | |
Loans collectively evaluated for impairment | 3,056 | 3,292 | 3,115 | |
Loans: | ||||
Loans individually evaluated for impairment | 2,461 | 2,826 | 3,011 | |
Loans collectively evaluated for impairment | 516,167 | 492,322 | 434,631 | |
Consumer loans | Home equity loans | Acquired non-credit impaired loans | ||||
Loans: | ||||
Loans collectively evaluated for impairment | 188,732 | 242,425 | 320,591 | |
Carrying value | 188,732 | 242,425 | ||
Commercial and industrial | ||||
Loans: | ||||
Carrying value | 7,029 | 10,043 | ||
Commercial and industrial | Non-acquired loans | ||||
Allowance for loan losses: | ||||
Loans individually evaluated for impairment | 366 | 416 | 15 | |
Loans collectively evaluated for impairment | 7,973 | 7,038 | 5,473 | |
Loans: | ||||
Loans individually evaluated for impairment | 6,578 | 1,291 | 1,156 | |
Loans collectively evaluated for impairment | 1,274,281 | 1,053,661 | 814,031 | |
Commercial and industrial | Acquired credit impaired loans | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 79 | 145 | 238 | |
Provision (benefit) for loan losses | 260 | 511 | 64 | |
Reduction due to loan removals | (315) | (577) | (157) | |
Balance at the end of the period | 24 | 79 | 145 | |
Loans collectively evaluated for impairment | 24 | 79 | 145 | |
Loans: | ||||
Loans collectively evaluated for impairment | 7,029 | 10,043 | 26,946 | |
Carrying value | 7,029 | 10,043 | 26,946 | |
Commercial and industrial | Acquired non-credit impaired loans | ||||
Loans: | ||||
Loans collectively evaluated for impairment | 101,880 | 212,537 | 398,696 | |
Carrying value | 101,880 | 212,537 | ||
Other income producing property | Non-acquired loans | ||||
Allowance for loan losses: | ||||
Loans individually evaluated for impairment | 50 | 142 | 178 | |
Loans collectively evaluated for impairment | 1,286 | 1,304 | 1,197 | |
Loans: | ||||
Loans individually evaluated for impairment | 2,024 | 2,872 | 3,138 | |
Loans collectively evaluated for impairment | 216,593 | 211,481 | 190,709 | |
Other income producing property | Acquired non-credit impaired loans | ||||
Loans: | ||||
Loans collectively evaluated for impairment | 95,697 | 133,110 | 196,669 | |
Carrying value | 95,697 | 133,110 | ||
Consumer | ||||
Loans: | ||||
Carrying value | 35,488 | 42,492 | ||
Consumer | Non-acquired loans | ||||
Allowance for loan losses: | ||||
Loans individually evaluated for impairment | 55 | 2 | 7 | |
Loans collectively evaluated for impairment | 3,892 | 3,099 | 2,781 | |
Loans: | ||||
Loans individually evaluated for impairment | 173 | 188 | 239 | |
Loans collectively evaluated for impairment | 538,308 | 448,476 | 378,746 | |
Consumer | Acquired credit impaired loans | ||||
Loans: | ||||
Carrying value | 35,488 | 42,492 | ||
Consumer | Acquired non-credit impaired loans | ||||
Loans: | ||||
Loans collectively evaluated for impairment | 89,484 | 111,777 | 137,710 | |
Carrying value | 89,484 | 111,777 | ||
Commercial loans | Acquired non-credit impaired loans | ||||
Loans: | ||||
Carrying value | 985,780 | 1,611,811 | ||
Commercial loans | Construction and land development | Acquired non-credit impaired loans | ||||
Loans: | ||||
Loans collectively evaluated for impairment | 33,569 | 165,070 | 403,357 | |
Commercial loans | Other commercial non-owner occupied real estate | Acquired non-credit impaired loans | ||||
Loans: | ||||
Loans collectively evaluated for impairment | $ 307,193 | $ 421,841 | $ 521,818 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Credit risk profile by risk grade of non acquired loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 |
Loans and Allowance for Loan Losses | |||||
Other Real Estate, Non Covered | $ 11,964 | $ 11,410 | $ 11,203 | $ 18,316 | |
Non-acquired loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 9,252,831 | 7,933,286 | 6,492,155 | ||
Classified assets | 49,500 | 56,600 | |||
Other Real Estate, Non Covered | 3,600 | 3,900 | |||
Non-acquired loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 9,123,097 | 7,813,938 | |||
Non-acquired loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 83,830 | 66,645 | |||
Non-acquired loans | Substandard and doubtful | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 45,900 | 52,700 | |||
Non-acquired loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 45,904 | 52,703 | |||
Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 1,760,427 | 2,594,826 | 3,507,907 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 1,760,427 | 2,594,826 | |||
Acquired non-credit impaired loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 1,697,942 | 2,523,010 | |||
Acquired non-credit impaired loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 39,772 | 48,716 | |||
Acquired non-credit impaired loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 22,713 | 23,100 | |||
Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 361,846 | 489,723 | 623,430 | $ 78,967 | |
Acquired credit impaired loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 218,364 | 296,106 | |||
Acquired credit impaired loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 58,281 | 74,388 | |||
Acquired credit impaired loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 85,201 | 119,229 | |||
Residential real estate | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 163,359 | 207,482 | |||
Residential real estate | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 82,203 | 104,181 | |||
Residential real estate | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 35,968 | 41,964 | |||
Residential real estate | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 45,188 | 61,337 | |||
Residential real estate | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 163,359 | 207,482 | 260,787 | ||
Commercial non-owner occupied real estate | Non-acquired loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 2,779,498 | 2,256,996 | |||
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 968,360 | 841,445 | 830,875 | ||
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 959,206 | 832,612 | |||
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 7,095 | 6,015 | |||
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 2,059 | 2,818 | |||
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 1,811,138 | 1,415,551 | 1,008,893 | ||
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 1,787,306 | 1,407,744 | |||
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 22,410 | 6,427 | |||
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 1,422 | 1,380 | |||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 33,569 | 165,070 | |||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 31,690 | 163,777 | |||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 966 | 838 | |||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 913 | 455 | |||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 447,441 | 679,253 | 817,166 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 447,441 | 679,253 | |||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 432,710 | 665,913 | |||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 14,162 | 13,018 | |||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 569 | 322 | |||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 25,032 | 32,942 | 49,649 | ||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 17,756 | 20,293 | |||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 2,904 | 3,001 | |||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 4,372 | 9,648 | |||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 130,938 | 196,764 | 234,595 | ||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 108,762 | 160,788 | |||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 6,465 | 14,393 | |||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 15,711 | 21,583 | |||
Commercial owner occupied real estate loan | Non-acquired loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 1,784,017 | 1,517,551 | 1,262,776 | ||
Commercial owner occupied real estate loan | Non-acquired loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 1,754,801 | 1,480,267 | |||
Commercial owner occupied real estate loan | Non-acquired loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 19,742 | 24,576 | |||
Commercial owner occupied real estate loan | Non-acquired loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 9,474 | 12,708 | |||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 307,193 | 421,841 | |||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 300,678 | 411,783 | |||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 3,092 | 5,664 | |||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 3,423 | 4,394 | |||
Consumer loans | Non-acquired loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 2,637,467 | 2,431,413 | |||
Consumer loans | Non-acquired loans | Home equity loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 518,628 | 495,148 | 437,642 | ||
Consumer loans | Non-acquired loans | Home equity loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 508,054 | 481,607 | |||
Consumer loans | Non-acquired loans | Home equity loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 4,490 | 7,293 | |||
Consumer loans | Non-acquired loans | Home equity loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 6,084 | 6,248 | |||
Consumer loans | Non-acquired loans | Other Consumer | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 13,892 | 9,357 | |||
Consumer loans | Non-acquired loans | Other Consumer | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 13,892 | 9,357 | |||
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 2,118,839 | 1,936,265 | 1,530,260 | ||
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 2,094,080 | 1,909,427 | |||
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 9,585 | 11,304 | |||
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 15,174 | 15,534 | |||
Consumer loans | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 774,647 | 983,015 | |||
Consumer loans | Acquired non-credit impaired loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 747,880 | 953,739 | |||
Consumer loans | Acquired non-credit impaired loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 12,767 | 16,254 | |||
Consumer loans | Acquired non-credit impaired loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 14,000 | 13,022 | |||
Consumer loans | Acquired non-credit impaired loans | Home equity loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 188,732 | 242,425 | 320,591 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 188,732 | 242,425 | |||
Consumer loans | Acquired non-credit impaired loans | Home equity loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 174,912 | 227,515 | |||
Consumer loans | Acquired non-credit impaired loans | Home equity loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 5,679 | 7,688 | |||
Consumer loans | Acquired non-credit impaired loans | Home equity loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 8,141 | 7,222 | |||
Consumer loans | Acquired non-credit impaired loans | Other Consumer | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 89,484 | 111,777 | |||
Consumer loans | Acquired non-credit impaired loans | Other Consumer | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 86,535 | 108,833 | |||
Consumer loans | Acquired non-credit impaired loans | Other Consumer | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 654 | 698 | |||
Consumer loans | Acquired non-credit impaired loans | Other Consumer | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 2,295 | 2,246 | |||
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 496,431 | 628,813 | 710,611 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 496,431 | 628,813 | |||
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 486,433 | 617,391 | |||
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 6,434 | 7,868 | |||
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 3,564 | 3,554 | |||
Consumer loans | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 35,488 | 42,492 | 51,453 | ||
Commercial and industrial | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 7,029 | 10,043 | |||
Commercial and industrial | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 5,160 | 5,093 | |||
Commercial and industrial | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 286 | 546 | |||
Commercial and industrial | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 1,583 | 4,404 | |||
Commercial and industrial | Non-acquired loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 1,280,859 | 1,054,952 | 815,187 | ||
Commercial and industrial | Non-acquired loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 1,256,465 | 1,037,915 | |||
Commercial and industrial | Non-acquired loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 16,055 | 5,887 | |||
Commercial and industrial | Non-acquired loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 8,339 | 11,150 | |||
Commercial and industrial | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 101,880 | 212,537 | 398,696 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 101,880 | 212,537 | |||
Commercial and industrial | Acquired non-credit impaired loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 97,092 | 202,399 | |||
Commercial and industrial | Acquired non-credit impaired loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 2,948 | 6,523 | |||
Commercial and industrial | Acquired non-credit impaired loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 1,840 | 3,615 | |||
Commercial and industrial | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 7,029 | 10,043 | 26,946 | ||
Other income producing property | Non-acquired loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 218,617 | 214,353 | 193,847 | ||
Other income producing property | Non-acquired loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 213,291 | 208,186 | |||
Other income producing property | Non-acquired loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 3,966 | 4,706 | |||
Other income producing property | Non-acquired loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 1,360 | 1,461 | |||
Other income producing property | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 95,697 | 133,110 | 196,669 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 95,697 | 133,110 | |||
Other income producing property | Acquired non-credit impaired loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 87,892 | 125,399 | |||
Other income producing property | Acquired non-credit impaired loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 5,837 | 6,419 | |||
Other income producing property | Acquired non-credit impaired loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 1,968 | 1,292 | |||
Consumer | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 35,488 | 42,492 | |||
Consumer | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 4,483 | 5,751 | |||
Consumer | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 12,658 | 14,484 | |||
Consumer | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 18,347 | 22,257 | |||
Consumer | Non-acquired loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 538,481 | 448,664 | 378,985 | ||
Consumer | Non-acquired loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 536,002 | 446,823 | |||
Consumer | Non-acquired loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 487 | 437 | |||
Consumer | Non-acquired loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 1,992 | 1,404 | |||
Consumer | Non-acquired loans | All Consumer | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 3,189,840 | 2,889,434 | |||
Consumer | Non-acquired loans | All Consumer | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 3,152,028 | 2,847,214 | |||
Consumer | Non-acquired loans | All Consumer | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 14,562 | 19,034 | |||
Consumer | Non-acquired loans | All Consumer | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 23,250 | 23,186 | |||
Consumer | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 89,484 | 111,777 | 137,710 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 89,484 | 111,777 | |||
Consumer | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 35,488 | 42,492 | |||
Commercial loans | Non-acquired loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 6,062,991 | 5,043,852 | |||
Commercial loans | Non-acquired loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 5,971,069 | 4,966,724 | |||
Commercial loans | Non-acquired loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 69,268 | 47,611 | |||
Commercial loans | Non-acquired loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 22,654 | 29,517 | |||
Commercial loans | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 985,780 | 1,611,811 | |||
Commercial loans | Acquired non-credit impaired loans | Pass | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 950,062 | 1,569,271 | |||
Commercial loans | Acquired non-credit impaired loans | Special mention | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 27,005 | 32,462 | |||
Commercial loans | Acquired non-credit impaired loans | Substandard | |||||
Loans and Allowance for Loan Losses | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 8,713 | 10,078 | |||
Commercial loans | Acquired non-credit impaired loans | Construction and land development | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 33,569 | 165,070 | 403,357 | ||
Commercial loans | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 307,193 | 421,841 | 521,818 | ||
Other loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 1,289 | ||||
Other loans | Non-acquired loans | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | $ 13,892 | $ 9,357 | $ 33,690 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Aging analysis of past due loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | $ 22,696 | $ 14,555 | |
Current | 9,230,135 | 7,918,731 | |
Total loans | 9,252,831 | 7,933,286 | $ 6,492,155 |
Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 13,535 | 6,108 | |
Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,387 | 3,459 | |
Non-acquired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 7,774 | 4,988 | |
Acquired credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 17,460 | 26,998 | |
Current | 344,386 | 462,725 | |
Acquired credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 6,059 | 8,770 | |
Acquired credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,169 | 1,465 | |
Acquired credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 9,232 | 16,763 | |
Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 13,916 | 15,532 | |
Current | 1,746,511 | 2,579,294 | |
Total loans | 1,760,427 | 2,594,826 | 3,507,907 |
Acquired non-credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 3,147 | 8,456 | |
Acquired non-credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 7,180 | 2,750 | |
Acquired non-credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 3,589 | 4,326 | |
Residential real estate | Acquired credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 9,385 | 14,358 | |
Current | 153,974 | 193,124 | |
Residential real estate | Acquired credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,838 | 4,620 | |
Residential real estate | Acquired credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 976 | 1,251 | |
Residential real estate | Acquired credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 5,571 | 8,487 | |
Commercial non-owner occupied real estate | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Total loans | 2,779,498 | 2,256,996 | |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Past due | 615 | 1,450 | |
Current | 967,745 | 839,995 | |
Total loans | 968,360 | 841,445 | 830,875 |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 321 | 693 | |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 39 | 305 | |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 255 | 452 | |
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Past due | 413 | 482 | |
Current | 1,810,725 | 1,415,069 | |
Total loans | 1,811,138 | 1,415,551 | 1,008,893 |
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 114 | 68 | |
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 18 | ||
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 299 | 396 | |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Past due | 393 | 2,943 | |
Current | 24,639 | 29,999 | |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 115 | ||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 12 | ||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 393 | 2,816 | |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Past due | 4,942 | 5,521 | |
Current | 125,996 | 191,243 | |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,283 | 876 | |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 112 | ||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,659 | 4,533 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Past due | 276 | 1,057 | |
Current | 33,293 | 164,013 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 20 | 647 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 45 | ||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 256 | 365 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,366 | 911 | |
Current | 446,075 | 678,342 | |
Total loans | 447,441 | 679,253 | 817,166 |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 144 | 607 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,146 | 21 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 76 | 283 | |
Commercial owner occupied real estate loan | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 6,949 | 4,038 | |
Current | 1,777,068 | 1,513,513 | |
Total loans | 1,784,017 | 1,517,551 | 1,262,776 |
Commercial owner occupied real estate loan | Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 4,011 | 1,639 | |
Commercial owner occupied real estate loan | Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 636 | 1,495 | |
Commercial owner occupied real estate loan | Non-acquired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,302 | 904 | |
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,290 | 1,970 | |
Current | 304,903 | 419,871 | |
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 890 | 964 | |
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 702 | 1,006 | |
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 698 | ||
Consumer loans | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Total loans | 2,637,467 | 2,431,413 | |
Consumer loans | Non-acquired loans | Home equity loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,944 | 1,989 | |
Current | 516,684 | 493,159 | |
Total loans | 518,628 | 495,148 | 437,642 |
Consumer loans | Non-acquired loans | Home equity loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,343 | 744 | |
Consumer loans | Non-acquired loans | Home equity loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 39 | 532 | |
Consumer loans | Non-acquired loans | Home equity loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 562 | 713 | |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 3,866 | 3,192 | |
Current | 2,114,973 | 1,933,073 | |
Total loans | 2,118,839 | 1,936,265 | 1,530,260 |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,157 | 1,460 | |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 285 | 789 | |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,424 | 943 | |
Consumer loans | Non-acquired loans | Other Consumer | |||
Loans and Allowance for Loan Losses | |||
Total loans | 13,892 | 9,357 | |
Consumer loans | Acquired non-credit impaired loans | Home equity loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,578 | 3,937 | |
Current | 187,154 | 238,488 | |
Total loans | 188,732 | 242,425 | 320,591 |
Consumer loans | Acquired non-credit impaired loans | Home equity loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 369 | 1,286 | |
Consumer loans | Acquired non-credit impaired loans | Home equity loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 55 | 442 | |
Consumer loans | Acquired non-credit impaired loans | Home equity loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,154 | 2,209 | |
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,333 | 2,537 | |
Current | 495,098 | 626,276 | |
Total loans | 496,431 | 628,813 | 710,611 |
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 768 | 1,127 | |
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 151 | 621 | |
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 414 | 789 | |
Commercial and industrial | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 6,280 | 1,591 | |
Current | 1,274,579 | 1,053,361 | |
Total loans | 1,280,859 | 1,054,952 | 815,187 |
Commercial and industrial | Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 5,531 | 898 | |
Commercial and industrial | Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 100 | 120 | |
Commercial and industrial | Non-acquired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 649 | 573 | |
Commercial and industrial | Acquired credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,103 | 2,525 | |
Current | 5,926 | 7,518 | |
Commercial and industrial | Acquired credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 118 | 2,437 | |
Commercial and industrial | Acquired credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 910 | ||
Commercial and industrial | Acquired credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 75 | 88 | |
Commercial and industrial | Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 314 | 2,797 | |
Current | 101,566 | 209,740 | |
Total loans | 101,880 | 212,537 | 398,696 |
Commercial and industrial | Acquired non-credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 93 | 2,648 | |
Commercial and industrial | Acquired non-credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 204 | 130 | |
Commercial and industrial | Acquired non-credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 17 | 19 | |
Other income producing property | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 665 | 484 | |
Current | 217,952 | 213,869 | |
Total loans | 218,617 | 214,353 | 193,847 |
Other income producing property | Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 208 | 169 | |
Other income producing property | Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 26 | ||
Other income producing property | Non-acquired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 457 | 289 | |
Other income producing property | Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 5,238 | 1,008 | |
Current | 90,459 | 132,102 | |
Total loans | 95,697 | 133,110 | 196,669 |
Other income producing property | Acquired non-credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 378 | 603 | |
Other income producing property | Acquired non-credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 4,309 | 276 | |
Other income producing property | Acquired non-credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 551 | 129 | |
Consumer | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,936 | 1,329 | |
Current | 536,545 | 447,335 | |
Total loans | 538,481 | 448,664 | 378,985 |
Consumer | Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 825 | 437 | |
Consumer | Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 285 | 174 | |
Consumer | Non-acquired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 826 | 718 | |
Consumer | Non-acquired loans | All Consumer | |||
Loans and Allowance for Loan Losses | |||
Total loans | 3,189,840 | 2,889,434 | |
Consumer | Acquired credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,637 | 1,651 | |
Current | 33,851 | 40,841 | |
Consumer | Acquired credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 820 | 722 | |
Consumer | Acquired credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 283 | 90 | |
Consumer | Acquired credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 534 | 839 | |
Consumer | Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,521 | 1,315 | |
Current | 87,963 | 110,462 | |
Total loans | 89,484 | 111,777 | 137,710 |
Consumer | Acquired non-credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 485 | 574 | |
Consumer | Acquired non-credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 613 | 209 | |
Consumer | Acquired non-credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 423 | 532 | |
Commercial loans | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Total loans | 6,062,991 | 5,043,852 | |
Commercial loans | Acquired non-credit impaired loans | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Total loans | 33,569 | 165,070 | 403,357 |
Commercial loans | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Total loans | 307,193 | 421,841 | 521,818 |
Other loans | |||
Loans and Allowance for Loan Losses | |||
Total loans | 1,289 | ||
Other loans | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 28 | ||
Current | 13,864 | 9,357 | |
Total loans | 13,892 | $ 9,357 | $ 33,690 |
Other loans | Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 25 | ||
Other loans | Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | $ 3 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Nonaccrual loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | $ 61,700 | $ 59,460 | |
Recorded Investment With No Allowance | 14,924 | 10,714 | |
Gross Recorded Investment With Allowance | 43,608 | 46,304 | |
Total Recorded Investment | 58,532 | 57,018 | |
Related Allowance | 1,346 | 1,628 | |
Average Investment In Impaired Loans | 57,775 | 60,221 | $ 42,318 |
Interest Income Recognized | 2,134 | 2,068 | 1,984 |
Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 22,302 | 14,827 | |
Acquired non-credit impaired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 10,839 | 13,489 | |
Commercial non-owner occupied real estate | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 35,577 | 38,314 | |
Recorded Investment With No Allowance | 223 | 339 | |
Gross Recorded Investment With Allowance | 34,978 | 37,574 | |
Total Recorded Investment | 35,201 | 37,913 | |
Related Allowance | 617 | 788 | |
Average Investment In Impaired Loans | 36,556 | 40,571 | 23,132 |
Interest Income Recognized | 1,014 | 1,201 | 1,138 |
Commercial non-owner occupied real estate | Other commercial non-owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 385 | 1,157 | |
Recorded Investment With No Allowance | 368 | 536 | |
Gross Recorded Investment With Allowance | 11 | 489 | |
Total Recorded Investment | 379 | 1,025 | |
Related Allowance | 70 | ||
Average Investment In Impaired Loans | 702 | 1,200 | 1,091 |
Interest Income Recognized | 15 | 28 | 45 |
Commercial non-owner occupied real estate | Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 1,095 | 1,255 | |
Commercial non-owner occupied real estate | Non acquired non-accrual loans | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 363 | 424 | |
Commercial non-owner occupied real estate | Non acquired non-accrual loans | Other commercial non-owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 732 | 831 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 1,092 | 535 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired non-accrual loans | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 699 | 252 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired non-accrual loans | Other commercial non-owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 393 | 283 | |
Commercial owner occupied real estate loan | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 7,689 | 5,085 | |
Recorded Investment With No Allowance | 4,836 | 3,101 | |
Gross Recorded Investment With Allowance | 1,739 | 1,041 | |
Total Recorded Investment | 6,575 | 4,142 | |
Related Allowance | 24 | 27 | |
Average Investment In Impaired Loans | 5,358 | 4,892 | 5,943 |
Interest Income Recognized | 370 | 288 | 268 |
Commercial owner occupied real estate loan | Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 3,482 | 1,068 | |
Commercial owner occupied real estate loan | Acquired non-credit impaired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 903 | 1,470 | |
Consumer loans | Home equity loans | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 2,605 | 2,953 | |
Recorded Investment With No Allowance | 1,184 | 1,129 | |
Gross Recorded Investment With Allowance | 1,277 | 1,697 | |
Total Recorded Investment | 2,461 | 2,826 | |
Related Allowance | 132 | 142 | |
Average Investment In Impaired Loans | 2,644 | 2,919 | 2,343 |
Interest Income Recognized | 138 | 126 | 113 |
Consumer loans | Consumer Owner Occupied Loans | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 5,410 | 7,291 | |
Recorded Investment With No Allowance | 1,969 | 4,992 | |
Gross Recorded Investment With Allowance | 3,172 | 1,769 | |
Total Recorded Investment | 5,141 | 6,761 | |
Related Allowance | 102 | 41 | |
Average Investment In Impaired Loans | 5,951 | 6,197 | 5,653 |
Interest Income Recognized | 185 | 212 | 195 |
Consumer loans | Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 8,670 | 9,442 | |
Consumer loans | Non acquired non-accrual loans | Home equity loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 1,468 | 2,333 | |
Consumer loans | Non acquired non-accrual loans | Consumer Owner Occupied Loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 7,202 | 7,109 | |
Consumer loans | Acquired non-credit impaired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 5,417 | 8,376 | |
Consumer loans | Acquired non-credit impaired non-accrual loans | Home equity loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 3,067 | 4,512 | |
Consumer loans | Acquired non-credit impaired non-accrual loans | Consumer Owner Occupied Loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 2,350 | 3,864 | |
Commercial and industrial | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 7,378 | 1,332 | |
Recorded Investment With No Allowance | 5,929 | 467 | |
Gross Recorded Investment With Allowance | 649 | 824 | |
Total Recorded Investment | 6,578 | 1,291 | |
Related Allowance | 366 | 416 | |
Average Investment In Impaired Loans | 3,935 | 1,224 | 1,209 |
Interest Income Recognized | 324 | 57 | 48 |
Commercial and industrial | Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 4,092 | 647 | |
Commercial and industrial | Acquired non-credit impaired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 722 | 1,296 | |
Other income producing property | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 2,423 | 3,117 | |
Recorded Investment With No Allowance | 415 | 150 | |
Gross Recorded Investment With Allowance | 1,609 | 2,722 | |
Total Recorded Investment | 2,024 | 2,872 | |
Related Allowance | 50 | 142 | |
Average Investment In Impaired Loans | 2,448 | 3,005 | 2,755 |
Interest Income Recognized | 84 | 155 | 171 |
Other income producing property | Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 798 | 500 | |
Other income producing property | Acquired non-credit impaired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 1,101 | 244 | |
Consumer | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 233 | 211 | |
Gross Recorded Investment With Allowance | 173 | 188 | |
Total Recorded Investment | 173 | 188 | |
Related Allowance | 55 | 2 | |
Average Investment In Impaired Loans | 181 | 213 | 192 |
Interest Income Recognized | 4 | 1 | $ 6 |
Consumer | Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 1,587 | 1,267 | |
Consumer | Acquired non-credit impaired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | $ 1,604 | 1,568 | |
Restructured loans | ASC Topic 31020 Loans | Minimum | |||
Loans and Allowance for Loan Losses | |||
Number of months generally required to return to accruing status | 6 months | ||
Restructured loans | Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | $ 2,578 | $ 648 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($) | |
OREO | |||
Balance at the beginning of the period | $ 11,410 | $ 11,203 | $ 18,316 |
Additions, net | 10,373 | 13,391 | 11,558 |
Write-downs | (1,192) | (1,420) | (2,249) |
Sold | (8,627) | (11,974) | (18,853) |
Balance at the end of the period | $ 11,964 | $ 11,410 | 11,203 |
Number of properties held | property | 59 | 75 | |
Residential real estate consumer mortgage loans in foreclosure, carrying value | $ 5,600 | ||
Residential real estate | |||
OREO | |||
Other Real Estate In Foreclosure | $ 1,800 | ||
Southeastern Bank Financial | |||
OREO | |||
Acquired | 385 | ||
Park Sterling Corporation | |||
OREO | |||
Acquired | $ 210 | $ 2,046 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Premises and equipment | ||||
Total | $ 497,725,000 | $ 415,208,000 | ||
Less accumulated depreciation | (180,404,000) | (174,132,000) | ||
Net premises and equipment | 317,321,000 | 241,076,000 | ||
Depreciation expense charged to operations | 18,200,000 | 18,700,000 | $ 15,200,000 | |
Capitalized implementation costs related to new commercial loan platform | 1,100,000 | |||
Internal use software | ||||
Premises and equipment | ||||
Capitalized implementation costs related to a front capture software product | 171,000 | |||
2018-15 | ||||
Premises and equipment | ||||
Capitalized implementation costs related to internal use software | 1,300,000 | |||
2018-15 | Internal use software | ||||
Premises and equipment | ||||
Capitalized implementation costs related to internal use software | $ 1,300,000 | |||
Capitalized implementation costs related to new commercial loan platform | 1,100,000 | |||
Capitalized implementation costs related to a front capture software product | $ 171,000 | |||
Land | ||||
Premises and equipment | ||||
Total | 74,913,000 | 77,338,000 | ||
Buildings and leasehold improvements | ||||
Premises and equipment | ||||
Total | $ 226,750,000 | 224,620,000 | ||
Buildings and leasehold improvements | Minimum | ||||
Premises and equipment | ||||
Useful Life | 15 years | |||
Buildings and leasehold improvements | Maximum | ||||
Premises and equipment | ||||
Useful Life | 40 years | |||
Equipment and furnishings | ||||
Premises and equipment | ||||
Total | $ 106,696,000 | 109,468,000 | ||
Equipment and furnishings | Minimum | ||||
Premises and equipment | ||||
Useful Life | 3 years | |||
Equipment and furnishings | Maximum | ||||
Premises and equipment | ||||
Useful Life | 10 years | |||
Construction in process | ||||
Premises and equipment | ||||
Total | $ 1,977,000 | 3,782,000 | ||
Computer software | ||||
Premises and equipment | ||||
Useful Life | 36 months | |||
Total | $ 13,700,000 | 13,500,000 | ||
Depreciation expense charged to operations | 1,200,000 | $ 2,100,000 | $ 2,500,000 | |
Lease right of use assets | ||||
Premises and equipment | ||||
Total | $ 87,389,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of changes (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Impairment of Goodwill | $ 0 | $ 0 | |
Goodwill | |||
Goodwill, Beginning Balance | 1,002,900 | $ 999,586 | |
PSC acquisition Day 1 adjustment | 3,314 | ||
Goodwill, Ending Balance | $ 1,002,900 | $ 1,002,900 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of gross carrying amounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other intangible assets | |||
Gross carrying amount | $ 119,501 | $ 121,736 | |
Accumulated amortization | (69,685) | (58,836) | |
Net carrying amount | 49,816 | 62,900 | |
Amortization expense | 13,084 | 14,209 | $ 10,353 |
Estimated amortization expense for other intangibles for each of the next five years | |||
2020 | 11,867 | ||
2021 | 10,584 | ||
2022 | 9,266 | ||
2023 | 6,314 | ||
2024 | 3,940 | ||
Thereafter | 7,845 | ||
Net carrying amount | $ 49,816 | $ 62,900 | |
Minimum | |||
Other intangible assets | |||
Estimated useful lives | 2 years | ||
Maximum | |||
Other intangible assets | |||
Estimated useful lives | 15 years |
Deposits - Total deposits (Deta
Deposits - Total deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits | ||
Certificates of deposit | $ 1,651,399 | $ 1,775,095 |
Interest-bearing demand deposits | 5,966,496 | 5,407,175 |
Non-interest bearing demand deposits | 3,245,306 | 3,061,769 |
Savings deposits | 1,309,896 | 1,399,815 |
Other time deposits | 3,999 | 3,079 |
Total deposits | $ 12,177,096 | $ 11,646,933 |
Deposits - Certificates of depo
Deposits - Certificates of deposits and Scheduled maturities of time deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits | ||
Aggregate amounts of certificates of deposits in denominations of $250,000 or more | $ 303,200 | $ 320,000 |
Traditional, out-of-market brokered deposits | 0 | 7,600 |
Other Time Deposits | 3,999 | $ 3,079 |
Scheduled maturities of time deposits of all denominations | ||
2020 | 1,094,319 | |
2021 | 374,534 | |
2022 | 100,213 | |
2023 | 71,145 | |
2024 | 12,489 | |
Thereafter | 2,698 | |
Time deposits | $ 1,655,398 |
Federal Funds Purchased and S_3
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amount | |||
At period-end | $ 298,741 | $ 270,649 | |
Rate | |||
Repurchase agreement | 242,200 | 205,300 | |
Carrying amount of the securities pledged to collateralize repurchase agreements | 242,200 | 205,300 | |
Federal funds purchased and securities sold under repurchase agreements | |||
Amount | |||
At period-end | 298,741 | 270,649 | $ 286,857 |
Average for the year | 282,172 | 312,768 | 325,713 |
Maximum month-end balance | $ 321,833 | $ 362,047 | $ 401,786 |
Rate | |||
At period-end (as a percent) | 0.90% | 1.08% | 0.45% |
Average for the year (as a percent) | 0.93% | 0.75% | 0.33% |
Federal funds purchased and securities sold under repurchase agreements | Minimum | |||
Information concerning federal funds purchased and securities sold under repurchase agreements | |||
Maturity period from the transaction date | 1 day | ||
Federal funds purchased and securities sold under repurchase agreements | Maximum | |||
Information concerning federal funds purchased and securities sold under repurchase agreements | |||
Maturity period from the transaction date | 3 days | ||
Maturity period as per policies | 9 months |
Other Borrowings (Details)
Other Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other Borrowings | ||
Shot-term borrowings | $ 700,000 | $ 150,000 |
Long term borrowings | 115,936 | 116,084 |
Total borrowings | 815,936 | 266,084 |
Discount | 2,700 | 3,400 |
Federal Home Loan Bank Rate Credit maturing 3/4/2020 | ||
Other Borrowings | ||
Shot-term borrowings | $ 200,000 | |
Fixed interest rate (as a percent) | 1.75% | |
Federal Home Loan Bank Rate Credit maturing 3/19/2020 | ||
Other Borrowings | ||
Shot-term borrowings | $ 350,000 | |
Fixed interest rate (as a percent) | 1.73% | |
Federal Home Loan Bank Rate Credit Maturing Three 3/30/2020 | ||
Other Borrowings | ||
Shot-term borrowings | $ 150,000 | |
Fixed interest rate (as a percent) | 1.72% | |
Federal Home Loan Bank Short Term Advance 12/31/2019 | ||
Other Borrowings | ||
Shot-term borrowings | $ 150,000 | |
Fixed interest rate (as a percent) | 2.64% | |
Short term borrowings | ||
Other Borrowings | ||
Weighted average interest rate (as a percent) | 2.35% | 2.64% |
LIBOR | Minimum | ||
Other Borrowings | ||
Spread on variable rate basis (as a percent) | 140.00% | |
LIBOR | Maximum | ||
Other Borrowings | ||
Spread on variable rate basis (as a percent) | 285.00% | |
SCBT Capital Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 12,372 | $ 12,372 |
Fixed interest rate (as a percent) | 3.68% | 4.58% |
SCBT Capital Trust II junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 8,248 | $ 8,248 |
Fixed interest rate (as a percent) | 3.68% | 4.58% |
SCBT Capital Trust III junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 20,619 | $ 20,619 |
Fixed interest rate (as a percent) | 3.48% | 4.38% |
SAVB Capital Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 6,186 | $ 6,186 |
Fixed interest rate (as a percent) | 4.84% | 5.29% |
SAVB Capital Trust II junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 4,124 | $ 4,124 |
Fixed interest rate (as a percent) | 4.09% | 4.99% |
TSB Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 3,093 | $ 3,093 |
Fixed interest rate (as a percent) | 3.61% | 4.51% |
Southeastern Bank Financial Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 10,310 | $ 10,310 |
Fixed interest rate (as a percent) | 3.29% | 4.19% |
Southeastern Bank Financial Statutory Trust II junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 10,310 | $ 10,310 |
Fixed interest rate (as a percent) | 3.29% | 4.19% |
CSBC Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 15,464 | $ 15,464 |
Fixed interest rate (as a percent) | 3.46% | 4.36% |
Community Capital Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 10,310 | $ 10,310 |
Fixed interest rate (as a percent) | 3.44% | 4.34% |
FCRV Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 5,155 | $ 5,155 |
Fixed interest rate (as a percent) | 3.59% | 4.49% |
Provident Community Bancshares Capital Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 4,124 | $ 4,124 |
Fixed interest rate (as a percent) | 3.84% | 4.14% |
Provident Community Bancshares Capital Trust II junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 8,248 | $ 8,248 |
Fixed interest rate (as a percent) | 3.65% | 4.48% |
Fair Market Value Discount Trust Preferred Debt Acquired | ||
Other Borrowings | ||
Other long term debt acquired | $ (2,730) | $ (3,397) |
Other | ||
Other Borrowings | ||
Long term borrowings | 103 | $ 918 |
Total borrowings | $ 103 | |
Fixed interest rate (as a percent) | 0.50% | 4.14% |
Long term borrowings | ||
Other Borrowings | ||
Weighted average interest rate (as a percent) | 3.60% | 4.45% |
Other Borrowings - Short-term F
Other Borrowings - Short-term FHLB Advances (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | |
FHLB Advances | |||||
Outstanding advances | $ 700,000 | $ 150,000 | |||
Notional Amount | 2,051,663 | $ 889,162 | |||
Interest rate swap agreement one | |||||
FHLB Advances | |||||
Notional Amount | $ 350,000 | ||||
Term of agreement | 4 years | ||||
Interest rate swap agreement two | |||||
FHLB Advances | |||||
Notional Amount | $ 350,000 | ||||
Term of agreement | 5 years | ||||
FHLB Advances | |||||
FHLB Advances | |||||
Loans pledged via a blanket lien to the FHLB for advances and letters of credit | 3,300,000 | ||||
Total borrowing capacity at FHLB | 2,500,000 | ||||
Letter of credit borrowed | 231,100 | ||||
Unused net credit available with the FHLB | $ 1,600,000 | ||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 1.73% | 2.64% | 1.48% | ||
Long-term Debt, Weighted Average Interest Rate, over Time | 2.35% | 1.57% | 0.97% | ||
Average amount of FHLB advances outstanding | $ 538,600 | $ 42,300 | |||
Payments of FHLB advances | $ 150,000 | ||||
FHLB advances borrowed | $ 500,000 | $ 200,000 | |||
Period of fixed rate FHLB advances | 90 days |
Other Borrowings - Junior Subor
Other Borrowings - Junior Subordinated Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Junior Subordinated Debt | ||
Junior subordinated debt securities | $ 115.8 | $ 115.2 |
Discount | $ 2.7 | $ 3.4 |
Junior Subordinated Debt | ||
Junior Subordinated Debt | ||
Debt instrument term | 5 years | |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 3.60% | 4.45% |
Long-term Debt, Weighted Average Interest Rate, over Time | 4.20% | 3.90% |
Junior Subordinated Debt net of discount | ||
Junior Subordinated Debt | ||
Long-term Debt, Weighted Average Interest Rate, over Time | 4.88% | 4.61% |
Trusts | Junior Subordinated Debt | ||
Junior Subordinated Debt | ||
Junior subordinated debt securities | $ 115.8 | |
Amount of trust preferred securities excluded from Tier 1 capital | $ 115.8 | |
Maximum allowed percentage of ownership interest to total Tier 1 capital | 25.00% | |
SAVB Capital Trust I and II and FFCH Capital Trust I | Junior Subordinated Debt | ||
Junior Subordinated Debt | ||
Liability for the junior subordinated debt securities recorded on SAVB Capital Trust I and II | $ 115.8 | |
Discount | 2.7 | |
Amount paid to holders, if the entity call backs the subordinated debt securities | $ 118.6 | |
Discount amortization period | 5 years |
Other Borrowings - Lines of Cre
Other Borrowings - Lines of Credit (Details) - USD ($) $ in Thousands | Nov. 15, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Principal maturities of other borrowings | |||
2020 | $ 700,007 | ||
2021 | 8 | ||
2022 | 8 | ||
2023 | 8 | ||
2024 | 8 | ||
Thereafter | 115,897 | ||
Total borrowings | 815,936 | $ 266,084 | |
Unsecured line of credit | |||
Other Borrowings | |||
Maximum borrowing capacity | $ 25,000 | 0 | $ 0 |
Junior Subordinated Debt | |||
Principal maturities of other borrowings | |||
Thereafter | 115,833 | ||
Total borrowings | 115,833 | ||
FHLB Advances | |||
Principal maturities of other borrowings | |||
2020 | 700,000 | ||
Total borrowings | 700,000 | ||
Other | |||
Principal maturities of other borrowings | |||
2020 | 7 | ||
2021 | 8 | ||
2022 | 8 | ||
2023 | 8 | ||
2024 | 8 | ||
Thereafter | 64 | ||
Total borrowings | $ 103 | ||
LIBOR | Unsecured line of credit | |||
Other Borrowings | |||
Spread on variable rate basis (as a percent) | 1.35% |
Income Taxes - Provision for in
Income Taxes - Provision for income taxes breakup (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | |||
Provisional income tax expense | $ 26,600 | $ 26,600 | |
Current: | |||
Federal | 40,375 | $ 25,275 | 46,153 |
State | 4,965 | 6,783 | 3,018 |
Total current tax expense | 45,340 | 32,058 | 49,171 |
Deferred: | |||
Federal | (1,598) | 12,557 | 31,971 |
State | 200 | 769 | 109 |
Total deferred tax expense (benefit) | (1,398) | 13,326 | 32,080 |
Provision for income taxes | $ 43,942 | $ 45,384 | $ 81,251 |
Federal statutory income tax rate (as a percent) | 21.00% | 21.00% | 35.00% |
Income Taxes - Provision for _2
Income Taxes - Provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Difference between the provision for income taxes and taxes computed by applying the federal statutory income tax rate to income before provision for income taxes | |||
Income taxes at federal statutory rate | $ 48,389 | $ 47,094 | $ 59,082 |
Increase (reduction) of taxes resulting from: | |||
State income taxes, net of federal tax benefit | 4,080 | 5,916 | 2,032 |
Non- deductible merger expenses | 586 | ||
Increase in cash surrender value of BOLI policies | (1,210) | (1,261) | (1,319) |
Tax-exempt interest | (1,877) | (2,037) | (2,840) |
Income tax credits | (6,881) | (3,118) | (1,951) |
Dividends received deduction | (2) | (5) | (12) |
Non-deductible FDIC premiums | 133 | 191 | |
Revaluation of net deferred tax asset due to tax law change | (991) | 26,558 | |
Other, net | 1,310 | (405) | (885) |
Provision for income taxes | 43,942 | 45,384 | $ 81,251 |
Components of the net deferred tax asset | |||
Allowance for loan losses | 14,468 | 12,953 | |
Other-than-temporary impairment on securities | 250 | 257 | |
Share-based compensation | 4,975 | 4,475 | |
Pension plan and post-retirement benefits | 494 | 192 | |
Deferred compensation | 12,475 | 11,841 | |
Purchase accounting adjustments | 24,530 | 28,659 | |
Other real estate owned | 380 | 455 | |
Net operating loss and tax credit carryforwards | 10,347 | 11,572 | |
Lease liability | 19,146 | ||
Cash flow hedge | 3,034 | 11 | |
Unrealized losses on investment securities available for sale | 7,273 | ||
Other | 1,040 | 1,665 | |
Total deferred tax assets | 91,139 | 79,353 | |
Unrealized gains on investment securities available for sale | 2,373 | ||
Depreciation | 6,585 | 7,314 | |
Intangible assets | 9,979 | 12,617 | |
Net deferred loan costs | 9,082 | 9,409 | |
Right of use assets | 19,465 | ||
Prepaid expense | 474 | 474 | |
Tax deductible goodwill | 810 | 388 | |
Mortgage servicing rights | 6,688 | 7,608 | |
Other | 480 | 840 | |
Total deferred tax liabilities | 55,936 | 38,650 | |
Net deferred tax assets before valuation allowance | 35,203 | 40,703 | |
Less, valuation allowance | (3,887) | (3,575) | |
Net deferred tax assets | $ 31,316 | $ 37,128 |
Income Taxes - Additional infor
Income Taxes - Additional information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes | ||
Unrecognized tax benefits | $ 0 | |
Accrued interest and penalties | 0 | |
Peoples | ||
Income Taxes | ||
Operating loss carryforwards | 4,600 | |
Annual limitation on operating loss carryforwards | 1,500 | |
Savannah Bancorp ("SAVB") | ||
Income Taxes | ||
Operating loss carryforwards | 13,000 | |
Annual limitation on operating loss carryforwards | 2,000 | |
Park Sterling Corporation | ||
Income Taxes | ||
Operating loss carryforwards | 1,100 | |
RBIL carryforwards | 12,800 | |
Annual limitations on RBIL carryforward | 1,100 | |
Annual limitation on operating loss carryforwards | 218 | |
Federal | ||
Income Taxes | ||
Operating loss carryforwards | 18,700 | $ 24,300 |
State | ||
Income Taxes | ||
Operating loss carryforwards | 108,600 | $ 101,400 |
Valuation allowance relating to operating loss carryforwards | $ 3,900 |
Other Expense (Details)
Other Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Expense | |||
Business development and staff related | $ 8,837 | $ 9,536 | $ 7,449 |
Bankcard expense | 2,331 | 1,783 | 2,180 |
Other loan expense | 2,087 | 2,028 | 2,590 |
Director and shareholder expense | 1,859 | 2,065 | 1,635 |
Armored carrier and courier expense | 1,874 | 2,102 | 1,703 |
Property and sales tax | 2,131 | 1,760 | 1,033 |
Low income housing tax credit partnership amortization | 6,141 | 3,829 | 3,038 |
Other | 6,233 | 6,272 | 6,272 |
Total other noninterest expense | $ 31,493 | $ 29,375 | $ 25,900 |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of basic and diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic earnings per common share: | |||
Net income | $ 186,483 | $ 178,871 | $ 87,554 |
Weighted-average basic common shares | 34,561 | 36,530 | 29,686 |
Basic earnings per common share (in dollars per share) | $ 5.40 | $ 4.90 | $ 2.95 |
Diluted earnings per share: | |||
Net income | $ 186,483 | $ 178,871 | $ 87,554 |
Weighted-average basic common shares | 34,561 | 36,530 | 29,686 |
Effect of dilutive securities (in shares) | 236 | 246 | 236 |
Weighted-average dilutive shares | 34,797 | 36,776 | 29,922 |
Diluted earnings per common share (in dollars per share) | $ 5.36 | $ 4.86 | $ 2.93 |
Earnings Per Common Share - Cal
Earnings Per Common Share - Calculation of diluted EPS under Treasury method (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share | |||
Number of shares | 62,235 | 62,235 | 34,712 |
Range of exercise prices, low end of range (in dollars per share) | $ 87.30 | $ 87.30 | $ 69.48 |
Range of exercise prices, high end of range (in dollars per share) | $ 91.35 | $ 91.35 | $ 91.35 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in components of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of the period | $ (24,881) | $ (10,427) | $ (8,211) |
Other comprehensive income (loss) before reclassifications | 17,818 | (13,064) | (2,535) |
Amounts reclassified from accumulated other comprehensive income (loss) | 8,080 | 1,557 | 319 |
Other comprehensive income (loss), net of tax | 25,898 | (11,507) | (2,216) |
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | (2,947) | ||
Balance at the end of the period | 1,017 | (24,881) | (10,427) |
Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of the period | (6,450) | (5,998) | (6,195) |
Other comprehensive income (loss) before reclassifications | 20 | 382 | (365) |
Amounts reclassified from accumulated other comprehensive income (loss) | 6,281 | 926 | 562 |
Other comprehensive income (loss), net of tax | 6,301 | 1,308 | 197 |
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | (1,760) | ||
Balance at the end of the period | (149) | (6,450) | (5,998) |
Unrealized Gains and Losses on Securities Available for Sale | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of the period | (18,394) | (4,278) | (1,708) |
Other comprehensive income (loss) before reclassifications | 28,245 | (13,479) | (2,157) |
Amounts reclassified from accumulated other comprehensive income (loss) | 2,071 | 510 | (413) |
Other comprehensive income (loss), net of tax | 30,316 | (12,969) | (2,570) |
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | (1,147) | ||
Balance at the end of the period | 11,922 | (18,394) | (4,278) |
Gains and Losses on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of the period | (37) | (151) | (308) |
Other comprehensive income (loss) before reclassifications | (10,447) | 33 | (13) |
Amounts reclassified from accumulated other comprehensive income (loss) | (272) | 121 | 170 |
Other comprehensive income (loss), net of tax | (10,719) | 154 | 157 |
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | (40) | ||
Balance at the end of the period | $ (10,756) | (37) | $ (151) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) | |||
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | $ (2,947) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassifications out of accumulated other comprehensive income, net of tax | |||
Interest expense | $ (86,552) | $ (53,992) | $ (17,014) |
Other-than-temporary impairment losses | (753) | ||
Provision for income taxes | (43,942) | (45,384) | (81,251) |
Net income | 186,483 | 178,871 | 87,554 |
Amount Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassifications out of accumulated other comprehensive income, net of tax | |||
Net income | 8,080 | 1,557 | 319 |
Gains and Losses on Cash Flow Hedges | Amount Reclassified from Accumulated Other Comprehensive Loss | Interest rate contracts | |||
Reclassifications out of accumulated other comprehensive income, net of tax | |||
Interest expense | (349) | 155 | 275 |
Provision for income taxes | 77 | (34) | (105) |
Net income | (272) | 121 | 170 |
Unrealized Gains and Losses on Securities Available for Sale | Amount Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassifications out of accumulated other comprehensive income, net of tax | |||
Securities (gains) losses, net | 2,655 | 655 | (1,421) |
Provision for income taxes | (584) | (145) | 542 |
Net income | 2,071 | 510 | (879) |
Noncredit Other-Than-Temporary Impairment Losses | Amount Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassifications out of accumulated other comprehensive income, net of tax | |||
Other-than-temporary impairment losses | 753 | ||
Provision for income taxes | (287) | ||
Net income | 466 | ||
Benefit Plans | Amount Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassifications out of accumulated other comprehensive income, net of tax | |||
Salaries and employee benefits /Pension Plan Termination Expense | 8,053 | 1,187 | 908 |
Provision for income taxes | (1,772) | (261) | (346) |
Net income | $ 6,281 | $ 926 | $ 562 |
Restrictions on Subsidiary Di_2
Restrictions on Subsidiary Dividends, Loans, or Advances (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Nov. 30, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | |
Special dividend paid by the Bank to the entity | $ 25,000 | ||||||
Amount available for special dividend distribution with approval from SCBFI | $ 157,000 | $ 60,000 | |||||
Cost of shares repurchased | 2,486 | $ 2,173 | $ 5,512 | ||||
Maximum amount available for transfer in the form of loans or advances | $ 245,800 | 246,400 | 245,800 | ||||
Announced stock repurchase program | |||||||
Cost of shares repurchased | 68,400 | $ 68,400 | $ 156,900 | 68,400 | |||
Amount available for special dividend distribution without approval from SCBFI | $ 66,600 | $ 66,600 | |||||
Park Sterling Corporation | |||||||
Repayments of senior debt | $ 30,000 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan termination expense | $ 9,500 | $ 9,526 | |
Recognition of pre-tax losses from pension plan | 7,700 | ||
Write-off of pension plan asset | 1,800 | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax [Abstract] | |||
Net loss | $ 0 | $ (7,900) | |
Non-contributory defined benefit pension plan | Employees hired on or before December 31, 2005 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Requisite age of employees for receiving retirement benefits under the plan | 21 years | ||
Requisite age of employees for receiving retirement benefits under the new benefit formula | 1 year |
Retirement Plans - Pension Plan
Retirement Plans - Pension Plan Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in benefit obligation: | |||
Benefit obligation at end of year | $ 0 | ||
Non-contributory defined benefit pension plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 28,906 | $ 31,500 | $ 28,800 |
Service cost | 121 | 77 | 127 |
Interest cost | 1,158 | 1,080 | 1,124 |
Actuarial (gain) loss | 2,471 | (2,442) | 2,665 |
Expenses | 318 | 121 | 78 |
Plan termination settlements | (31,800) | ||
Benefit obligation at end of year | 28,906 | 31,500 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 30,545 | 31,387 | 28,216 |
Actual return on plan assets | 2,111 | 467 | 4,387 |
Benefits paid | (538) | (1,188) | (1,138) |
Expenses | 318 | 121 | 78 |
Plan termination settlements | (31,800) | ||
Fair value of plan assets at end of year | 30,545 | 31,387 | |
Funded (unfunded) status | 1,639 | (113) | |
SCBT Post-retirement Benefit Plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 309 | 337 | 393 |
Interest cost | 11 | 11 | 13 |
Actuarial (gain) loss | (33) | 2 | (29) |
Benefits paid | (33) | (41) | (40) |
Benefit obligation at end of year | 254 | 309 | 337 |
Change in plan assets: | |||
Employer contribution | 33 | 41 | 40 |
Benefits paid | (33) | (41) | (40) |
Funded (unfunded) status | $ (254) | $ (309) | $ (337) |
Retirement Plans - Components O
Retirement Plans - Components Of Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Net periodic pension expense | $ (309) | $ (351) | |
Other Comprehensive Income | |||
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Interest cost | $ 1,157 | 1,079 | 1,124 |
Service cost | 121 | 78 | 127 |
Expected return on plan assets | (2,361) | (2,328) | (2,213) |
Recognized net actuarial loss | 483 | 775 | 751 |
Net periodic pension expense | (600) | (396) | (211) |
Plan termination settlements | 10,126 | ||
Net periodic pension cost with settlement | 9,526 | (396) | |
Net (gain) loss | 2,722 | (581) | 491 |
Amortization of gain (loss) | (483) | (775) | (751) |
Plan termination settlement adjustment | (10,126) | ||
Total amount recognized in other comprehensive income | (7,887) | (1,356) | (260) |
Total recognized in net periodic benefit cost and other comprehensive income | $ 1,639 | $ (1,752) | $ (471) |
Retirement Plans - Measurement
Retirement Plans - Measurement Date (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted-average assumptions used to determine net periodic pension cost | ||||
Discount rate (as a percent) | 4.10% | 3.50% | 4.00% | |
Defined Benefit Plan, Benefit Obligation | $ 0 | |||
Non-contributory defined benefit pension plan | ||||
Accumulated benefit obligation in excess of plan assets | ||||
Projected benefit obligation | $ 28,906 | |||
Accumulated benefit obligation | 28,906 | |||
Fair value of plan assets | $ 30,545 | |||
Weighted-average assumptions used to determine net periodic pension cost | ||||
Discount rate (as a percent) | 4.10% | 3.50% | 4.00% | |
Expected long-term return on plan assets (as a percent) | 7.75% | 7.75% | 7.75% | |
Defined Benefit Plan, Benefit Obligation | $ 28,906 | $ 31,500 | $ 28,800 | |
Number of shares repurchased | 0 |
Retirement Plans - Rate and sta
Retirement Plans - Rate and standard deviation assumptions (Details) - Non-contributory defined benefit pension plan | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | |||
Rate of Return Assumption (as a percent) | 7.75% | 7.75% | 7.75% |
Cash equivalents | |||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | |||
Actual asset allocation (as a percent) | 2.00% | ||
Cash equivalents | Maximum | |||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | |||
Allowable allocation percentages | 35.00% | ||
Cash equivalents | Minimum | |||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | |||
Allowable allocation percentages | 0.00% | ||
Equities | Maximum | |||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | |||
Allowable allocation percentages | 65.00% | ||
Equities | Minimum | |||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | |||
Allowable allocation percentages | 55.00% | ||
Fixed income | |||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | |||
Actual asset allocation (as a percent) | 98.00% | ||
Fixed income | Maximum | |||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | |||
Allowable allocation percentages | 40.00% | ||
Fixed income | Minimum | |||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | |||
Allowable allocation percentages | 20.00% |
Retirement Plans - Expenses Inc
Retirement Plans - Expenses Incurred And Charged Against Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension | $ (309) | $ (351) | |
Pension plan termination expense | $ 9,526 | ||
Employee savings plan/ 401(k) | 6,659 | 7,948 | 7,381 |
Supplemental executive retirement plan | 2,343 | 368 | 1,334 |
Post-retirement benefits | 144 | 254 | 251 |
Non-contributory defined benefit pension plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses incurred and charged against operations | $ 18,672 | $ 8,261 | $ 8,615 |
Retirement Plans - Safe Harbor
Retirement Plans - Safe Harbor plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employees' savings plan | ||||
Matching contribution by the company (as a percent) | 100.00% | |||
Discretionary matching contribution (as a percent) | 0.75% | |||
Expenses recognized under 401(K) plan | $ 6,659 | $ 7,948 | $ 7,381 | |
Minimum | ||||
Employees' savings plan | ||||
Age of employees to be eligible to participate in the defined contribution plan | 18 years | |||
Percentage of annual base compensation that participants may elect to contribute | 1.00% | |||
Maximum | ||||
Employees' savings plan | ||||
Percentage of annual base compensation that participants may elect to contribute | 50.00% | |||
Percentage of employees salary for which the company contributes a matching contribution | 4.00% | |||
Discretionary matching contribution (as a percent) | 2.00% |
Post-Retirement Benefits (Detai
Post-Retirement Benefits (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Post-Retirement Benefits | |||
Number of post-retirement health and life insurance benefit plans | item | 2 | ||
Change in benefit obligation: | |||
Benefit obligation at end of year | $ 0 | ||
Weighted-average assumptions used to determine net periodic pension cost | |||
Discount rate (as a percent) | 4.10% | 3.50% | 4.00% |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Net periodic pension expense | $ (309,000) | $ (351,000) | |
Effects of one-percentage point change in assumed health care cost trend rates | |||
One-Percentage Point Increase, Effect on aggregate service and interest cost | $ 5,000 | ||
One-Percentage Point Decrease, Effect on aggregate service and interest cost | (5,000) | ||
One-Percentage Point Increase, Effect on postretirement benefit obligation | 130 | ||
One-Percentage Point Decrease, Effect on postretirement benefit obligation | (118) | ||
Other Comprehensive Income | |||
Change in benefit obligation: | |||
Interest cost | 1,157,000 | 1,079,000 | 1,124,000 |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Interest cost | 1,157,000 | 1,079,000 | 1,124,000 |
Recognized net actuarial loss | 483,000 | 775,000 | 751,000 |
Net periodic pension expense | (600,000) | (396,000) | (211,000) |
Net loss | 2,722,000 | (581,000) | 491,000 |
Amortization of gain (loss) | (483,000) | (775,000) | (751,000) |
Total amount recognized in other comprehensive income | (7,887,000) | (1,356,000) | (260,000) |
Total recognized in net periodic benefit cost and other comprehensive income | 1,639,000 | (1,752,000) | (471,000) |
SCBT Post-retirement Benefit Plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 309,000 | 337,000 | 393,000 |
Interest cost | 11,000 | 11,000 | 13,000 |
Actuarial (gain) loss | (33,000) | 2,000 | (29,000) |
Benefits paid | (33,000) | (41,000) | (40,000) |
Benefit obligation at end of year | 254,000 | 309,000 | 337,000 |
Change in plan assets: | |||
Employer contribution | 33,000 | 41,000 | 40,000 |
Benefits paid | (33,000) | (41,000) | (40,000) |
Funded (unfunded) status | $ (254,000) | $ (309,000) | $ (337,000) |
Weighted-average assumptions used to determine the benefit obligation | |||
Discount rate (as a percent) | 2.70% | 3.80% | 3.20% |
Weighted-average assumptions used to determine net periodic pension cost | |||
Discount rate (as a percent) | 3.80% | 3.20% | 3.50% |
Assumed health care cost trend rates | |||
Health care cost trend rate assumed for next fiscal year (as a percent) | 5.00% | 5.00% | 5.00% |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Interest cost | $ 11,000 | $ 11,000 | $ 13,000 |
Recognized net actuarial loss | 6,000 | 6,000 | 10,000 |
Net periodic pension expense | 17,000 | 16,000 | 23,000 |
Net loss | (33,000) | 2,000 | (29,000) |
Amortization of gain (loss) | (6,000) | (6,000) | (10,000) |
Total amount recognized in other comprehensive income | (39,000) | (4,000) | (39,000) |
Total recognized in net periodic benefit cost and other comprehensive income | (22,000) | 12,000 | (16,000) |
Estimated net loss for the retiree medical plan that will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year | |||
Estimated net loss for the plan that will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year | 2,000,000 | ||
Effects of one-percentage point change in assumed health care cost trend rates | |||
One-Percentage Point Increase, Effect on aggregate service and interest cost | 1,000 | ||
One-Percentage Point Decrease, Effect on aggregate service and interest cost | (1,000) | ||
One-Percentage Point Increase, Effect on postretirement benefit obligation | 13,000 | ||
One-Percentage Point Decrease, Effect on postretirement benefit obligation | (12,000) | ||
Estimated future benefit payments (including expected future service as appropriate) | |||
2020 | 31,000 | ||
2021 | 30,000 | ||
2022 | 28,000 | ||
2023 | 27,000 | ||
2024 | 25,000 | ||
2025-2029 | 95,000 | ||
Estimated future benefit payments | 236,000 | ||
Expected contributions in the next fiscal year | |||
Amount of expected contributions in the next fiscal year | 31,000 | ||
FFCH Post-retirement Benefit Plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 2,281,000 | 2,392,000 | 2,447,000 |
Interest cost | 82,000 | 73,000 | 81,000 |
Actuarial (gain) loss | 7,000 | 89,000 | 126,000 |
Benefits paid | (273,000) | (286,000) | (274,000) |
less: federal subsidy on benefits paid | 12,000 | 13,000 | 12,000 |
Benefit obligation at end of year | 2,109,000 | 2,281,000 | 2,392,000 |
Change in plan assets: | |||
Employer contribution | 261,000 | 286,000 | 274,000 |
Participants' contributions | 12,000 | ||
Benefits paid | (273,000) | (286,000) | (274,000) |
Funded (unfunded) status | $ (2,109,000) | $ (2,281,000) | $ (2,392,000) |
Weighted-average assumptions used to determine the benefit obligation | |||
Discount rate (as a percent) | 2.70% | 3.80% | 3.20% |
Weighted-average assumptions used to determine net periodic pension cost | |||
Discount rate (as a percent) | 3.80% | 3.20% | 3.50% |
Assumed health care cost trend rates | |||
Health care cost trend rate assumed for next fiscal year (as a percent) | 5.00% | 5.00% | 5.00% |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Interest cost | $ 82,000 | $ 73,000 | $ 81,000 |
Estimated net loss for the retiree medical plan that will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year | |||
Estimated net loss for the plan that will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year | 151,000 | ||
Estimated future benefit payments (including expected future service as appropriate) | |||
2020 | 240,000 | ||
2021 | 230,000 | ||
2022 | 218,000 | ||
2023 | 206,000 | ||
2024 | 193,000 | ||
2025-2029 | 752,000 | ||
Estimated future benefit payments | 1,839,000 | ||
Expected contributions in the next fiscal year | |||
Amount of expected contributions in the next fiscal year | 240,000 | ||
FFCH Post-retirement Benefit Plan | Other Comprehensive Income | |||
Change in benefit obligation: | |||
Interest cost | 82,000 | 73,000 | 81,000 |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Interest cost | 82,000 | 73,000 | 81,000 |
Recognized net actuarial loss | 160,000 | 154,000 | 147,000 |
Net periodic pension expense | 242,000 | 227,000 | 228,000 |
Net loss | 7,000 | 89,000 | 126,000 |
Amortization of gain (loss) | (160,000) | (154,000) | (147,000) |
Total amount recognized in other comprehensive income | (153,000) | (65,000) | (21,000) |
Total recognized in net periodic benefit cost and other comprehensive income | $ 89,000 | $ 162,000 | $ 207,000 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 192 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Number of shares | ||||
Exercisable at the end of the period (in shares) | 140,115 | |||
Stock Options | ||||
Number of shares | ||||
Outstanding at the beginning of the period (in shares) | 213,866 | 218,689 | 246,535 | |
Granted (in shares) | 34,407 | 33,634 | ||
Exercised (in shares) | (36,978) | (33,424) | (59,480) | |
Forfeited (in shares) | (5,806) | (2,000) | ||
Outstanding at the end of the period (in shares) | 176,888 | 213,866 | 218,689 | 176,888 |
Exercisable at the end of the period (in shares) | 131,216 | 140,115 | 148,702 | 131,216 |
Weighted-Average Exercise Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 61.28 | $ 52.75 | $ 42.53 | |
Granted (in dollars per share) | 91.05 | 91.23 | ||
Exercised (in dollars per share) | 33.26 | 30.88 | 33.03 | |
Forfeited (in dollars per share) | 91.35 | 26.01 | ||
Outstanding at the end of the period (in dollars per share) | 67.14 | 61.28 | 52.75 | $ 67.14 |
Exercisable at the end of the period (in dollars per share) | $ 60.12 | 49.41 | 41.62 | $ 60.12 |
Weighted-average fair value of options granted during the year (in dollars per share) | $ 28.01 | $ 35.42 | ||
Aggregate Intrinsic Value | ||||
Outstanding at the end of the period | $ 3.7 | $ 1.9 | $ 7.7 | $ 3.7 |
Exercisable at the end of the period | 3.6 | 1.9 | 6.8 | $ 3.6 |
Exercised at the end of the period | $ 1.4 | $ 2 | $ 3.3 | |
Incentive stock options | Maximum | ||||
Share-Based Compensation | ||||
Vesting period | 4 years | |||
2019 plan | ||||
Share-Based Compensation | ||||
Number of shares registered | 1,000,000 | 1,000,000 | ||
2004 plan | ||||
Number of shares | ||||
Granted (in shares) | 0 | |||
Plan 2004 And 2012 | Incentive stock options | ||||
Share-Based Compensation | ||||
Vesting percentage | 25.00% | |||
Expiration period | 10 years |
Share-Based Compensation - Info
Share-Based Compensation - Information pertaining to options outstanding (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation | |||
Range of exercise prices, low end of range (in dollars per share) | $ 87.30 | $ 87.30 | $ 69.48 |
Range of exercise prices, high end of range (in dollars per share) | $ 91.35 | $ 91.35 | $ 91.35 |
Options Outstanding | |||
Number outstanding (in shares) | 176,888 | ||
Weighted Average Remaining Contractual Life | 5 years 4 months 24 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 67.14 | ||
Options Exercisable | |||
Number outstanding (in shares) | 131,216 | ||
Weighted Average Exercise Price (in dollars per share) | $ 60.12 | ||
Weighted Average Remaining Contractual Life | 4 years 7 months 6 days | ||
Restricted Stock | |||
Vesting schedule of shares | |||
2020 | 48,830 | ||
2021 | 3,905 | ||
2022 | 4,174 | ||
2023 | 4,553 | ||
2024 | 3,405 | ||
Thereafter | 4,583 | ||
$26.01 - $ 40.00 | |||
Share Based Compensation | |||
Range of exercise prices, low end of range (in dollars per share) | $ 26.01 | ||
Range of exercise prices, high end of range (in dollars per share) | $ 40 | ||
Options Outstanding | |||
Number outstanding (in shares) | 20,170 | ||
Weighted Average Remaining Contractual Life | 1 year 8 months 12 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 31.56 | ||
Options Exercisable | |||
Number outstanding (in shares) | 20,164 | ||
Weighted Average Exercise Price (in dollars per share) | $ 31.56 | ||
$40.01 - $ 55.00 | |||
Share Based Compensation | |||
Range of exercise prices, low end of range (in dollars per share) | 40.01 | ||
Range of exercise prices, high end of range (in dollars per share) | $ 55 | ||
Options Outstanding | |||
Number outstanding (in shares) | 19,874 | ||
Weighted Average Remaining Contractual Life | 2 years 10 months 24 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 41.42 | ||
Options Exercisable | |||
Number outstanding (in shares) | 19,874 | ||
Weighted Average Exercise Price (in dollars per share) | $ 41.42 | ||
$55.01 - $ 70.00 | |||
Share Based Compensation | |||
Range of exercise prices, low end of range (in dollars per share) | 55.01 | ||
Range of exercise prices, high end of range (in dollars per share) | $ 70 | ||
Options Outstanding | |||
Number outstanding (in shares) | 74,609 | ||
Weighted Average Remaining Contractual Life | 5 years 1 month 6 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 63.61 | ||
Options Exercisable | |||
Number outstanding (in shares) | 68,186 | ||
Weighted Average Exercise Price (in dollars per share) | $ 63.59 | ||
$70.01 - $ 85.00 | |||
Share Based Compensation | |||
Range of exercise prices, low end of range (in dollars per share) | 70.01 | ||
Range of exercise prices, high end of range (in dollars per share) | 85 | ||
$85.01 - $ 91.35 | |||
Share Based Compensation | |||
Range of exercise prices, low end of range (in dollars per share) | 85.01 | ||
Range of exercise prices, high end of range (in dollars per share) | $ 91.35 | ||
Options Outstanding | |||
Number outstanding (in shares) | 62,235 | ||
Weighted Average Remaining Contractual Life | 7 years 7 months 6 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 91.12 | ||
Options Exercisable | |||
Number outstanding (in shares) | 22,992 | ||
Weighted Average Exercise Price (in dollars per share) | $ 91.07 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted average assumptions used in valuing options (Details) - USD ($) | 12 Months Ended | 90 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2009 | |
Employee Stock Purchase Plan | ||||
Additional disclosures | ||||
Compensation expense | $ 75,000 | $ 82,000 | $ 43,000 | |
Employee Stock Purchase Plan | ||||
Number of shares of common stock registered in connection with the establishment of an Employee Stock Purchase Plan | 363,825 | |||
Requisite age of employees to be eligible to participate in the plan | 21 years | |||
Requisite service period to be eligible to participate in the plan | 6 months | |||
Discount rate for eligible employees to purchase company stock (as a percent) | 5.00% | 15.00% | ||
Minimum | Employee Stock Purchase Plan | ||||
Employee Stock Purchase Plan | ||||
Shares available for issuance under the plan | 50,000 | |||
Maximum | Employee Stock Purchase Plan | ||||
Employee Stock Purchase Plan | ||||
Estimated subscription date fair value (as a percent) | 95.00% | |||
Stock Options | ||||
Weighted-average assumptions | ||||
Dividend yield (as a percent) | 1.46% | 1.40% | ||
Expected life | 8 years 6 months | 8 years 6 months | ||
Expected volatility (as a percent) | 28.00% | 37.20% | ||
Risk-free interest rate (as a percent) | 2.54% | 2.43% | ||
Additional disclosures | ||||
Total unrecognized compensation cost related to non vested stock option grants | $ 720,000 | |||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 9 months 3 days | |||
Total fair value of shares vested during the period | $ 799,000 | $ 700,000 | $ 578,000 | |
Compensation expense | $ 641,000 | 751,000 | 784,000 | |
Restricted Stock | ||||
Additional disclosures | ||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 3 months | |||
Compensation expense | $ 1,700,000 | $ 2,500,000 | $ 2,500,000 | |
Restricted Stock Activity and RSUs | ||||
Nonvested at the beginning of the period (in shares) | 104,419 | |||
Granted (in shares) | 8,934 | 7,836 | 26,053 | |
Vested (in shares) | (40,858) | |||
Forfeited (in shares) | (3,045) | |||
Nonvested at the end of the period (in shares) | 69,450 | 104,419 | ||
Weighted-Average Grant-Date Fair Value | ||||
Nonvested at the beginning of the period (in dollars per share) | $ 62.45 | |||
Granted (in dollars per share) | 73.34 | $ 87.37 | $ 89.11 | |
Vested (in dollars per share) | 70.06 | |||
Forfeited (in dollars per share) | 72.01 | |||
Nonvested at the end of the period (in dollars per share) | $ 58.96 | $ 62.45 | ||
Additional disclosures | ||||
Total unrecognized compensation cost related to nonvested restricted stock and RSUs granted | $ 1,100,000 | |||
Total fair value of shares vested during the period | 3,000,000 | $ 2,500,000 | $ 3,100,000 | |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 3,000,000 | 2,500,000 | 3,100,000 | |
Restricted Stock | Employees | Minimum | ||||
Additional disclosures | ||||
Vesting period | 4 years | |||
Restricted Stock | Non-employee directors | Maximum | ||||
Additional disclosures | ||||
Vesting period | 12 months | |||
Restricted Stock Units | ||||
Additional disclosures | ||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 9 months 3 days | |||
Compensation expense | $ 6,400,000 | $ 5,500,000 | $ 3,600,000 | |
Restricted Stock Activity and RSUs | ||||
Nonvested at the beginning of the period (in shares) | 200,540 | |||
Granted (in shares) | 159,521 | 113,270 | 77,301 | |
Vested (in shares) | (31,723) | |||
Forfeited (in shares) | (3,737) | |||
Nonvested at the end of the period (in shares) | 324,601 | 200,540 | ||
Weighted-Average Grant-Date Fair Value | ||||
Nonvested at the beginning of the period (in dollars per share) | $ 85.10 | |||
Granted (in dollars per share) | 68.27 | |||
Vested (in dollars per share) | 89.40 | |||
Forfeited (in dollars per share) | 82.18 | |||
Nonvested at the end of the period (in dollars per share) | $ 76.44 | $ 85.10 | ||
Additional disclosures | ||||
Total unrecognized compensation cost related to nonvested restricted stock and RSUs granted | $ 10,500,000 | |||
Total fair value of shares vested during the period | $ 5,800,000 | $ 5,700,000 | $ 5,000,000 | |
Target RSU award level (as a percent) | 84.30% | |||
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 5,800,000 | $ 5,700,000 | $ 5,000,000 | |
Performance based restricted stock units | ||||
Additional disclosures | ||||
Performance period | 3 years | |||
Other Performance based restricted stock units | ||||
Additional disclosures | ||||
Performance period | 1 year | |||
Timed based restricted stock units | ||||
Additional disclosures | ||||
Performance period | 4 years |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2020 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jan. 31, 2019 | Mar. 31, 2017 | Feb. 29, 2004 | |
Stock repurchase program | ||||||||||
Stock Repurchased During Period, Value | $ 2,486 | $ 2,173 | $ 5,512 | |||||||
Announced stock repurchase program | ||||||||||
Stock repurchase program | ||||||||||
Shares authorized under repurchase program | 250,000 | |||||||||
Stock Repurchased During Period, Shares | 2,165,000 | 1,000,000 | ||||||||
Average price per share | $ 68.40 | $ 72.49 | $ 68.40 | |||||||
Stock Repurchased During Period, Value | $ 68,400 | $ 68,400 | $ 156,900 | $ 68,400 | ||||||
Other stock repurchase arrangements | ||||||||||
Stock repurchase program | ||||||||||
Stock Repurchased During Period, Shares | 35,674 | 25,251 | 61,125 | |||||||
Stock Repurchased During Period, Value | $ 2,500 | $ 2,200 | $ 5,500 | |||||||
2019 Stock Repurchase Program | ||||||||||
Stock repurchase program | ||||||||||
Shares authorized under repurchase program | 2,000,000 | 1,000,000 | ||||||||
Stock Repurchased During Period, Shares | 1,165,000 | |||||||||
Average price per share | $ 74.72 | |||||||||
2019 Stock Repurchase Program | Subsequent event | ||||||||||
Stock repurchase program | ||||||||||
Stock Repurchased During Period, Shares | 160,000 | |||||||||
Average price per share | $ 77.63 | |||||||||
Stock Repurchased During Period, Value | $ 12,400 | |||||||||
2004 plan | ||||||||||
Stock repurchase program | ||||||||||
Shares authorized under repurchase program | 1,000,000 |
Lease Commitments (Details)
Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Jan. 01, 2019 | |
Right to use asset | $ 87,389 | |
Lease Liability | $ 88,846 | |
Existence of option to extend | true | |
Renewal term | 25 years | |
ASU 2016- 02 | Adjustments | ||
Right to use asset | $ 82,200 | |
Lease Liability | $ 82,200 |
Lease Commitments - Lease cost
Lease Commitments - Lease cost and other information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease Expense Components: | |
Operating lease expense | $ 8,804 |
Short-term lease expense | 494 |
Variable lease expense | 430 |
Total lease expense | 9,728 |
Supplemental Cash Flow Information Related to Leases: | |
Cash paid for amounts included in the measurement of lease liabilities - operating leases | 7,725 |
Initial ROU assets recorded in exchange for new lease liabilities - operating leases | $ 10,239 |
Weighted - average remaining lease term (years) - Operating leases | 14 years 1 month 20 days |
Weighted - average discount rate - Operating leases | 3.90% |
Supplemental Balance Sheet Information Related to Leases | |
Operating lease ROU assets | $ 87,389 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment, Net |
Operating lease liabilities | $ 88,846 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities |
Maturity Analysis of Lease Liabilities: | |
2020 | $ 8,077 |
2021 | 8,226 |
2022 | 8,341 |
2023 | 8,414 |
2024 | 7,974 |
Thereafter | 76,222 |
Total | 117,254 |
Less: Imputed Interest | (28,408) |
Lease Liability | $ 88,846 |
Lease Commitments - Leases not
Lease Commitments - Leases not yet commenced (Details) $ in Millions | Dec. 31, 2019USD ($) |
Additional operating leases that not yet commenced | $ 5.2 |
Maximum | |
Lease term | 10 years |
Minimum | |
Lease term | 5 years |
Lease Commitments - Future mini
Lease Commitments - Future minimum (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Future minimum lease payments | ||
2019 | $ 7,497 | |
2020 | 7,580 | |
2021 | 7,423 | |
2022 | 6,823 | |
2023 | 6,123 | |
Thereafter | 16,510 | |
Total future minimum payments due | 51,956 | |
Total lease expense | $ 7,900 | $ 6,200 |
Contingent Liabilities (Details
Contingent Liabilities (Details) | Dec. 31, 2019item |
Contingent Liabilities | |
Number of pending or threatened litigation | 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - South State Bank (the Bank) - Directors and executive officers, their immediate families and their business interests - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transactions | ||
Loans outstanding | $ 37.5 | $ 23.5 |
Additional loans made | 32.5 | |
Repayments received | 18.5 | |
Related party deposits | $ 21.8 | $ 17.7 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Standby letters of credit | ||
Financial instruments, whose contract amounts represent credit risk | ||
Expiration period of standby letters of credit | 1 year | |
South State Bank (the Bank) | ||
Financial instruments, whose contract amounts represent credit risk | ||
Off balance sheet financial instruments | $ 2,934,869 | $ 2,781,626 |
South State Bank (the Bank) | Commitments to extend credit | ||
Financial instruments, whose contract amounts represent credit risk | ||
Off balance sheet financial instruments | 2,902,000 | 2,748,901 |
South State Bank (the Bank) | Standby letters of credit and financial guarantees | ||
Financial instruments, whose contract amounts represent credit risk | ||
Off balance sheet financial instruments | $ 32,869 | $ 32,725 |
Fair Value - Assets and liabili
Fair Value - Assets and liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | ||
Derivative financial instruments | $ 15,300 | $ 3,800 |
Securities available for sale | 1,956,047 | 1,517,067 |
Liabilities | ||
Derivative financial instruments | 16,500 | 4,300 |
Changes in fair value of assets | ||
Transfers of assets between Level 2 to Level 1 | 0 | 0 |
Transfers of liabilities between Level 1 to Level 2 | 0 | 0 |
Transfers of liabilities between Level 2 to Level 1 | 0 | 0 |
Government-sponsored entities debt | ||
Assets | ||
Securities available for sale | 25,941 | 48,251 |
State and municipal obligations | ||
Assets | ||
Securities available for sale | 208,415 | 200,768 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Loans held for sale | 59,363 | 22,925 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Mortgage servicing rights | 30,525 | 34,727 |
Recurring basis | ||
Assets | ||
Derivative financial instruments | 16,252 | 5,090 |
Loans held for sale | 59,363 | 22,925 |
Securities available for sale | 1,956,047 | 1,517,067 |
Mortgage servicing rights | 30,525 | 34,727 |
Fair value of Assets, Total | 2,062,187 | 1,579,809 |
Liabilities | ||
Derivative financial instruments | 31,273 | 4,421 |
Changes in fair value of assets | ||
Transfers of assets between Level 1 to Level 2 | 0 | 0 |
Recurring basis | Government-sponsored entities debt | ||
Assets | ||
Securities available for sale | 25,941 | 48,251 |
Recurring basis | State and municipal obligations | ||
Assets | ||
Securities available for sale | 208,415 | 200,768 |
Recurring basis | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 1,721,691 | 1,268,048 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative financial instruments | 16,252 | 5,090 |
Loans held for sale | 59,363 | 22,925 |
Securities available for sale | 1,956,047 | 1,517,067 |
Fair value of Assets, Total | 2,031,662 | 1,545,082 |
Liabilities | ||
Derivative financial instruments | 31,273 | 4,421 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Government-sponsored entities debt | ||
Assets | ||
Securities available for sale | 25,941 | 48,251 |
Recurring basis | Significant Other Observable Inputs (Level 2) | State and municipal obligations | ||
Assets | ||
Securities available for sale | 208,415 | 200,768 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 1,721,691 | 1,268,048 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Mortgage servicing rights | 30,525 | 34,727 |
Fair value of Assets, Total | 30,525 | 34,727 |
Changes in fair value of assets | ||
Fair value of assets at the beginning of the period | 34,727 | 31,119 |
Servicing assets that resulted from transfers of financial assets | 7,363 | 5,962 |
Change in unrealized loss recognized in other comprehensive income | 0 | 0 |
Changes in fair value assets due to valuation inputs or assumptions | (6,976) | 1,861 |
Changes in fair value due to decay | (4,589) | (4,215) |
Fair value of assets at the end of the period | 30,525 | 34,727 |
Unrealized losses included in accumulated other comprehensive income related to Level 3 financial assets and liabilities | $ 0 | $ 0 |
Fair Value - Assets and liabi_2
Fair Value - Assets and liabilities measured at fair value on a nonrecurring basis (Details) - Nonrecurring basis $ in Thousands | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item |
OREO | Fair Value | ||
Fair Value | ||
Other Real Estate | $ 11,964 | $ 11,410 |
Non-acquired impaired loans | Fair Value | ||
Fair Value | ||
Other Real Estate | $ 15,444 | $ 13,164 |
Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Quantitative Information about Level 3 Fair Value Measurements | ||
Long-term Debt, Valuation Technique [Extensible List] | us-gaap:MarketApproachValuationTechniqueMember | us-gaap:MarketApproachValuationTechniqueMember |
Long-term Debt, Measurement Input [Extensible List] | us-gaap:MeasurementInputDiscountRateMember | us-gaap:MeasurementInputDiscountRateMember |
Significant Unobservable Inputs (Level 3) | Impaired loans | Weighted average | ||
Quantitative Information about Level 3 Fair Value Measurements | ||
Discount rate (as a percent) | item | 0.02 | 0.03 |
Significant Unobservable Inputs (Level 3) | OREO | ||
Fair Value | ||
Other Real Estate | $ 11,964 | $ 11,410 |
Quantitative Information about Level 3 Fair Value Measurements | ||
Long-term Debt, Valuation Technique [Extensible List] | us-gaap:MarketApproachValuationTechniqueMember | us-gaap:MarketApproachValuationTechniqueMember |
Long-term Debt, Measurement Input [Extensible List] | us-gaap:MeasurementInputCostToSellMember | us-gaap:MeasurementInputCostToSellMember |
Significant Unobservable Inputs (Level 3) | OREO | Weighted average | ||
Quantitative Information about Level 3 Fair Value Measurements | ||
Discount rate (as a percent) | item | 0.31 | 0.23 |
Significant Unobservable Inputs (Level 3) | Non-acquired impaired loans | ||
Fair Value | ||
Other Real Estate | $ 15,444 | $ 13,164 |
Fair Value - Estimated fair val
Fair Value - Estimated fair value and related carrying amount, of the Company's financial instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial assets: | |||
Loans held for sale | $ 59,363 | $ 22,925 | |
Financial liabilities: | |||
Federal Funds Purchased and Securities Sold under Agreements to Repurchase. | 298,741 | 270,649 | |
Increase (Decrease) in Loans Held-for-sale | 363,446 | 391,428 | $ 636,836 |
Other borrowings | 815,936 | 266,084 | |
Carrying Amount | |||
Financial assets: | |||
Cash and cash equivalents | 688,704 | 408,983 | |
Investment securities | 2,005,171 | 1,542,671 | |
Loans held for sale | 59,363 | 22,925 | |
Loans, net of allowance for loan losses (1) | 11,313,113 | 10,962,037 | |
Accrued interest receivable | 36,774 | 35,997 | |
Mortgage servicing rights | 30,525 | 34,727 | |
Interest rate swap - non-designated hedge | 15,350 | 3,824 | |
Interest rate swap - cash flow hedge | 13,791 | ||
Other derivative financial instruments (mortgage banking related) | 902 | 1,267 | |
Financial liabilities: | |||
Deposits | 12,177,096 | 11,646,933 | |
Federal funds purchased and securities sold under agreements to repurchase | 298,741 | 270,649 | |
Other borrowings | 815,936 | 266,084 | |
Accrued interest payable | 4,916 | 4,719 | |
Interest rate swap - non-designated hedge | 16,693 | 4,373 | |
Interest rate swap - cash flow hedge | 48 | ||
Other derivative financial instruments (Mortgage banking related) | 789 | ||
Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 688,704 | 408,983 | |
Investment securities | 2,005,171 | 1,542,671 | |
Loans held for sale | 59,363 | 22,925 | |
Loans, net of allowance for loan losses (1) | 11,452,003 | 10,613,571 | |
Accrued interest receivable | 36,774 | 35,997 | |
Mortgage servicing rights | 30,525 | 34,727 | |
Interest rate swap - non-designated hedge | 15,350 | 3,824 | |
Interest rate swap - cash flow hedge | 13,791 | ||
Other derivative financial instruments (mortgage banking related) | 902 | 1,267 | |
Financial liabilities: | |||
Deposits | 11,406,477 | 10,561,394 | |
Federal funds purchased and securities sold under agreements to repurchase | 298,741 | 270,649 | |
Other borrowings | 818,210 | 269,134 | |
Accrued interest payable | 4,916 | 4,719 | |
Interest rate swap - non-designated hedge | 16,693 | 4,373 | |
Interest rate swap - cash flow hedge | 48 | ||
Other derivative financial instruments (Mortgage banking related) | 789 | ||
Commitments to extend credit | Fair Value | |||
Financial liabilities: | |||
Commitments to extend credit | 36,031 | (88,424) | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Financial assets: | |||
Cash and cash equivalents | 688,704 | 408,983 | |
Investment securities | 49,124 | 25,604 | |
Significant Other Observable Inputs (Level 2) | |||
Financial assets: | |||
Investment securities | 1,956,047 | 1,517,067 | |
Loans held for sale | 59,363 | 22,925 | |
Accrued interest receivable | 8,500 | 6,908 | |
Interest rate swap - non-designated hedge | 15,350 | 3,824 | |
Interest rate swap - cash flow hedge | 13,791 | ||
Other derivative financial instruments (mortgage banking related) | 902 | 1,267 | |
Financial liabilities: | |||
Deposits | 11,406,477 | 10,561,394 | |
Federal funds purchased and securities sold under agreements to repurchase | 298,741 | 270,649 | |
Other borrowings | 818,210 | 269,134 | |
Accrued interest payable | 4,916 | 4,719 | |
Interest rate swap - non-designated hedge | 16,693 | 4,373 | |
Interest rate swap - cash flow hedge | 48 | ||
Other derivative financial instruments (Mortgage banking related) | 789 | ||
Significant Other Observable Inputs (Level 2) | Commitments to extend credit | |||
Financial liabilities: | |||
Commitments to extend credit | 36,031 | (88,424) | |
Significant Unobservable Inputs (Level 3) | |||
Financial assets: | |||
Loans, net of allowance for loan losses (1) | 11,452,003 | 10,613,571 | |
Accrued interest receivable | 28,274 | 29,089 | |
Mortgage servicing rights | $ 30,525 | $ 34,727 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Capital ratios | |||
Capital conversion buffer common equity Tier 1 of risk-weighted assets (as a percent) | 2.50% | ||
Common equity Tier 1 to risk-weighted assets | |||
Actual, Capital Amount | $ 1,326,725 | $ 1,335,826 | |
Actual, Ratio (as a percent) | 11.30% | 12.05% | |
Required to be considered well capitalized, Capital Amount | $ 763,495 | $ 720,844 | |
Required to be considered well capitalized, Ratio (as a percent) | 6.50% | 6.50% | |
Tier I capital to risk-weighted assets | |||
Actual, Capital Amount | $ 1,438,995 | $ 1,447,428 | |
Actual, Ratio (as a percent) | 12.25% | 13.05% | |
Minimum capital required, Ratio (as a percent) | 6.00% | 4.00% | |
Required to be considered well capitalized, Capital Amount | $ 939,686 | $ 887,192 | |
Required to be considered well capitalized, Ratio (as a percent) | 8.00% | 8.00% | |
Total capital to risk-weighted assets | |||
Actual, Capital Amount | $ 1,501,321 | $ 1,503,561 | |
Actual, Ratio (as a percent) | 12.78% | 13.56% | |
Minimum capital required, Ratio (as a percent) | 8.00% | ||
Required to be considered well capitalized, Capital Amount | $ 1,174,607 | $ 1,108,990 | |
Required to be considered well capitalized, Ratio (as a percent) | 10.00% | 10.00% | |
Tier I capital to average assets (leverage ratio) | |||
Actual, Capital Amount | $ 1,438,995 | $ 1,447,428 | |
Actual, Ratio (as a percent) | 9.73% | 10.65% | |
Minimum capital required, Ratio (as a percent) | 4.00% | ||
Required to be considered well capitalized, Capital Amount | $ 739,664 | $ 679,383 | |
Required to be considered well capitalized, Ratio (as a percent) | 5.00% | 5.00% | |
Phase-In Schedule | |||
Common equity Tier 1 to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 822,225 | $ 706,981 | |
Minimum capital required, Ratio (as a percent) | 7.00% | 6.38% | |
Tier I capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 998,416 | $ 873,330 | |
Minimum capital required, Ratio (as a percent) | 8.50% | 7.88% | |
Total capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 1,233,338 | $ 1,095,128 | |
Minimum capital required, Ratio (as a percent) | 10.50% | 9.88% | |
Tier I capital to average assets (leverage ratio) | |||
Minimum capital required, Capital Amount | $ 591,731 | $ 543,506 | |
Minimum capital required, Ratio (as a percent) | 4.00% | 4.00% | |
Fully Phased-In | |||
Common equity Tier 1 to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 822,225 | $ 776,293 | |
Minimum capital required, Ratio (as a percent) | 7.00% | 7.00% | |
Tier I capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 998,416 | $ 942,642 | |
Minimum capital required, Ratio (as a percent) | 8.50% | 8.50% | |
Total capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 1,233,338 | $ 1,164,440 | |
Minimum capital required, Ratio (as a percent) | 10.50% | 10.50% | |
Tier I capital to average assets (leverage ratio) | |||
Minimum capital required, Capital Amount | $ 591,731 | $ 543,506 | |
Minimum capital required, Ratio (as a percent) | 4.00% | 4.00% | |
South State Bank (the Bank) | |||
Common equity Tier 1 to risk-weighted assets | |||
Actual, Capital Amount | $ 1,417,616 | $ 1,427,764 | |
Actual, Ratio (as a percent) | 12.07% | 12.87% | |
Required to be considered well capitalized, Capital Amount | $ 763,488 | $ 720,902 | |
Required to be considered well capitalized, Ratio (as a percent) | 6.50% | 6.50% | |
Tier I capital to risk-weighted assets | |||
Actual, Capital Amount | $ 1,417,616 | $ 1,427,764 | |
Actual, Ratio (as a percent) | 12.07% | 12.87% | |
Required to be considered well capitalized, Capital Amount | $ 939,677 | $ 887,264 | |
Required to be considered well capitalized, Ratio (as a percent) | 8.00% | 8.00% | |
Total capital to risk-weighted assets | |||
Actual, Capital Amount | $ 1,479,942 | $ 1,483,897 | |
Actual, Ratio (as a percent) | 12.60% | 13.38% | |
Required to be considered well capitalized, Capital Amount | $ 1,174,597 | $ 1,109,080 | |
Required to be considered well capitalized, Ratio (as a percent) | 10.00% | 10.00% | |
Tier I capital to average assets (leverage ratio) | |||
Actual, Capital Amount | $ 1,417,616 | $ 1,427,764 | |
Actual, Ratio (as a percent) | 9.59% | 10.51% | |
Required to be considered well capitalized, Capital Amount | $ 739,490 | $ 679,234 | |
Required to be considered well capitalized, Ratio (as a percent) | 5.00% | 5.00% | |
South State Bank (the Bank) | Phase-In Schedule | |||
Common equity Tier 1 to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 822,218 | $ 707,039 | |
Minimum capital required, Ratio (as a percent) | 7.00% | 6.38% | |
Tier I capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 998,407 | $ 873,401 | |
Minimum capital required, Ratio (as a percent) | 8.50% | 7.88% | |
Total capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 1,233,327 | $ 1,095,217 | |
Minimum capital required, Ratio (as a percent) | 10.50% | 9.88% | |
Tier I capital to average assets (leverage ratio) | |||
Minimum capital required, Capital Amount | $ 591,592 | $ 543,387 | |
Minimum capital required, Ratio (as a percent) | 4.00% | 4.00% | |
South State Bank (the Bank) | Fully Phased-In | |||
Common equity Tier 1 to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 822,218 | $ 776,356 | |
Minimum capital required, Ratio (as a percent) | 7.00% | 7.00% | |
Tier I capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 998,407 | $ 942,718 | |
Minimum capital required, Ratio (as a percent) | 8.50% | 8.50% | |
Total capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 1,233,327 | $ 1,164,534 | |
Minimum capital required, Ratio (as a percent) | 10.50% | 10.50% | |
Tier I capital to average assets (leverage ratio) | |||
Minimum capital required, Capital Amount | $ 591,592 | $ 543,387 | |
Minimum capital required, Ratio (as a percent) | 4.00% | 4.00% | |
Minimum | |||
Common equity Tier 1 to risk-weighted assets | |||
Actual, Ratio (as a percent) | 4.50% |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS. | ||||
Securities available for sale, at fair value | $ 1,956,047 | $ 1,517,067 | ||
Other Assets | 176,332 | 119,466 | ||
Total assets | 15,921,092 | 14,676,328 | ||
Liabilities. | 13,548,079 | 12,310,032 | ||
Shareholders' equity | 2,373,013 | 2,366,296 | $ 2,308,920 | $ 1,134,588 |
Total liabilities and shareholders' equity | 15,921,092 | 14,676,328 | ||
Parent company | Reportable Legal Entities | ||||
ASSETS. | ||||
Cash | 21,688 | 21,092 | ||
Investment in subsidiaries | 2,467,466 | 2,461,836 | ||
Other Assets | 204 | 54 | ||
Total assets | 2,489,358 | 2,482,982 | ||
Liabilities. | 116,345 | 116,686 | ||
Shareholders' equity | 2,373,013 | 2,366,296 | ||
Total liabilities and shareholders' equity | $ 2,489,358 | $ 2,482,982 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income: | |||
Income before provision for income taxes | $ 230,425 | $ 224,255 | $ 168,805 |
Applicable income tax benefit | (43,942) | (45,384) | (81,251) |
Net income | 186,483 | 178,871 | 87,554 |
Parent company | Reportable Legal Entities | |||
Income: | |||
Dividends from subsidiary | 214,852 | 117,298 | 63,703 |
Operating income | 5,386 | 67 | 580 |
Total income | 220,238 | 117,365 | 64,283 |
Operating expenses | 15,409 | 15,302 | 15,482 |
Income before provision for income taxes | 204,829 | 102,063 | 48,801 |
Applicable income tax benefit | 1,883 | 3,055 | 5,053 |
Equity in undistributed earnings of subsidiary (excess distribution) | (20,229) | 73,753 | 33,700 |
Net income | $ 186,483 | $ 178,871 | $ 87,554 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 186,483 | $ 178,871 | $ 87,554 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 33,121 | 35,696 | 28,704 |
Share-based compensation | 8,839 | 8,783 | 6,934 |
Gain on sale of securities available for sale | (2,711) | 655 | (1,421) |
Decrease (increase) in other assets | (44,767) | (1,168) | (32,324) |
Decrease in other liabilities | 36,023 | 3,359 | 7,076 |
Net cash provided by operating activities | 181,028 | 283,711 | 197,890 |
Cash flows from investing activities: | |||
Net cash inflow from acquisitions | 185,163 | ||
Net cash used in investing activities | (795,053) | (282,149) | (60,900) |
Cash flows from financing activities: | |||
Repayment of other borrowings | (150,007) | (540,007) | (390,811) |
Common stock issuance | 1,394 | 1,331 | 1,055 |
Common stock repurchased | (159,431) | (70,577) | (5,512) |
Dividends paid on common stock | (57,696) | (50,557) | (38,623) |
Stock options exercised | 1,230 | 1,032 | 1,965 |
Net cash provided by (used in) financing activities | 893,746 | 29,794 | (133,811) |
Net increase in cash and cash equivalents | 279,721 | 31,356 | 3,179 |
Cash and cash equivalents at beginning of period | 408,983 | 377,627 | 374,448 |
Cash and cash equivalents at end of period | 688,704 | 408,983 | 377,627 |
Parent company | Reportable Legal Entities | |||
Cash flows from operating activities: | |||
Net income | 186,483 | 178,871 | 87,554 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 666 | 666 | 666 |
Share-based compensation | 8,839 | 8,783 | 6,934 |
Gain on sale of securities available for sale | (5,366) | (486) | |
Decrease (increase) in other assets | (159) | 1,465 | (1,564) |
Decrease in other liabilities | (959) | (2,048) | (6,341) |
Undistributed earnings of subsidiary | 20,229 | (73,753) | (33,700) |
Net cash provided by operating activities | 209,733 | 113,984 | 53,063 |
Cash flows from investing activities: | |||
Proceeds from sales and calls of other investment securities | 5,366 | 687 | |
Net cash inflow from acquisitions | 15,468 | ||
Net cash used in investing activities | 5,366 | 16,155 | |
Cash flows from financing activities: | |||
Repayment of other borrowings | (30,000) | ||
Common stock issuance | 1,394 | 1,331 | 1,056 |
Common stock repurchased | (159,431) | (70,577) | (5,512) |
Dividends paid on common stock | (57,696) | (50,557) | (38,623) |
Stock options exercised | 1,230 | 1,032 | 1,965 |
Net cash provided by (used in) financing activities | (214,503) | (118,771) | (71,114) |
Net increase in cash and cash equivalents | 596 | (4,787) | (1,896) |
Cash and cash equivalents at beginning of period | 21,092 | 25,879 | 27,775 |
Cash and cash equivalents at end of period | $ 21,688 | $ 21,092 | $ 25,879 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2009 | |
Derivative Financial Instruments | |||||
Notional Amount | $ 2,051,663,000 | $ 889,162,000 | |||
Outstanding advances | 700,000,000 | 150,000,000 | |||
Estimated Fair Value Gain | 16,252,000 | 5,090,000 | |||
Estimated Fair Value Loss | $ 31,273,000 | 4,421,000 | |||
Variable rate basis, variable rate receivable on notional amount | three-month LIBOR | ||||
After-tax unrealized gain on cash flow hedge in other comprehensive income | $ 10,700,000 | 154,000 | |||
Cash flow hedge liability | 48,000 | ||||
Ineffectiveness in the cash flow hedge | 0 | 0 | |||
Gain or loss recorded | 0 | 0 | |||
Interest Rate Derivative Assets, at Fair Value | 15,300,000 | 3,800,000 | |||
Interest Rate Derivative Liabilities, at Fair Value | 16,500,000 | 4,300,000 | |||
Interest Rate Derivatives, at Fair Value, Net | 1,100,000 | 499,000 | |||
Other Liabilities. | |||||
Derivative Financial Instruments | |||||
Cash flow hedge liability | 13,800,000 | ||||
Junior Subordinated Debt | |||||
Derivative Financial Instruments | |||||
Collateral provided | 300,000 | ||||
FHLB Advances | |||||
Derivative Financial Instruments | |||||
Collateral provided | 22,600,000 | ||||
Mortgage loan pipeline | |||||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | |||||
Obligation | 80,785,000 | 50,442,000 | |||
Expected closures | |||||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | |||||
Obligation | 60,588,000 | 37,832,000 | |||
Cash flow hedge | Borrower | |||||
Derivative Financial Instruments | |||||
Collateral provided | 26,400,000 | ||||
Cash flow hedge | FHLB Advances - One | |||||
Derivative Financial Instruments | |||||
Notional Amount | $ 350,000,000 | ||||
Outstanding advances | 150,000,000 | ||||
Cash flow hedge | FHLB Advances - Two | |||||
Derivative Financial Instruments | |||||
Notional Amount | 150,000,000 | ||||
Outstanding advances | 150,000,000 | ||||
Cash flow hedge | FHLB Advances - Three | |||||
Derivative Financial Instruments | |||||
Notional Amount | $ 200,000,000 | 350,000,000 | |||
Interest rate contracts | |||||
Derivative Financial Instruments | |||||
Notional Amount | 1,100,000 | 737,000,000 | |||
Interest rate contracts | LIBOR | |||||
Derivative Financial Instruments | |||||
Notional Amount | $ 8,000,000 | ||||
Interest rate contracts | Cash flow hedge | |||||
Derivative Financial Instruments | |||||
Notional Amount | $ 8,000,000 | ||||
Interest rate contracts | Cash flow hedge | LIBOR | |||||
Derivative Financial Instruments | |||||
Fixed rate payable on notional amount (as a percent) | 4.06% | ||||
Mortgage servicing rights hedging | |||||
Derivative Financial Instruments | |||||
Estimated gain (loss) on fair value of open contracts related to mortgage servicing rights | $ 789,000 | (1,200,000) | |||
Mortgage servicing rights hedging | Non-designated hedges | |||||
Derivative Financial Instruments | |||||
Notional Amount | 133,000,000 | 94,500,000 | |||
Mortgage servicing rights hedging | Non-designated hedges | Other Assets. | |||||
Derivative Financial Instruments | |||||
Notional Amount | 133,000,000 | 94,500,000 | |||
Estimated Fair Value Gain | 1,184,000 | ||||
Estimated Fair Value Loss | 789,000 | ||||
Mortgage loan pipeline commitments | |||||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | |||||
Obligation | 1,160,000 | 705,000 | |||
Forward commitments | |||||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | |||||
Obligation | 87,773,000 | 46,812,000 | |||
Fair value of forward commitments | 258,000 | 621,000 | |||
Forward commitments | Non-designated hedges | Other Assets. | |||||
Derivative Financial Instruments | |||||
Notional Amount | 87,773,000 | 46,812,000 | |||
Estimated Fair Value Gain | 902,000 | 83,000 | |||
Interest rate swap | |||||
Derivative Financial Instruments | |||||
Estimated Fair Value Gain | 207,000 | ||||
Estimated Fair Value Loss | 646,000 | ||||
Interest rate swap | Cash flow hedge | Other Liabilities. | Counterparty | |||||
Derivative Financial Instruments | |||||
Notional Amount | 8,000,000 | 8,000,000 | |||
Estimated Fair Value Loss | 48,000 | ||||
Interest rate swap | Cash flow hedge | FHLB Advances | Other Liabilities. | Counterparty | |||||
Derivative Financial Instruments | |||||
Notional Amount | 700,000,000 | ||||
Estimated Fair Value Loss | $ 13,791,000 | ||||
Interest rate swap | Cash flow hedge | FHLB Advances - One | |||||
Derivative Financial Instruments | |||||
Notional Amount | $ 350,000,000 | ||||
Fixed rate payable on notional amount (as a percent) | 2.44% | ||||
Interest rate swap | Cash flow hedge | FHLB Advances - Two | |||||
Derivative Financial Instruments | |||||
Notional Amount | $ 150,000,000 | ||||
Fixed rate payable on notional amount (as a percent) | 2.21% | ||||
Interest rate swap | Cash flow hedge | FHLB Advances - Three | |||||
Derivative Financial Instruments | |||||
Notional Amount | $ 200,000,000 | ||||
Fixed rate payable on notional amount (as a percent) | 1.89% | ||||
Interest rate swap | Cash flow hedge | LIBOR | FHLB Advances - One | |||||
Derivative Financial Instruments | |||||
Variable rate (as a percent) | 1.91% | ||||
Interest rate swap | Cash flow hedge | LIBOR | FHLB Advances - Two | |||||
Derivative Financial Instruments | |||||
Variable rate (as a percent) | 1.96% | ||||
Interest rate swap | Cash flow hedge | LIBOR | FHLB Advances - Three | |||||
Derivative Financial Instruments | |||||
Variable rate (as a percent) | 1.91% | ||||
Interest rate swap | Fair Value Hedging | Counterparty | |||||
Derivative Financial Instruments | |||||
Notional Amount | $ 2,800,000 | ||||
Interest rate swap | Fair Value Hedging | Other Assets. | Counterparty | |||||
Derivative Financial Instruments | |||||
Notional Amount | 2,754,000 | 2,824,000 | |||
Estimated Fair Value Loss | 199,000 | 51,000 | |||
Interest rate swap | Non-designated hedges | Other Assets and Other Liabilities | Borrower | |||||
Derivative Financial Instruments | |||||
Notional Amount | 564,068,000 | 368,513,000 | |||
Estimated Fair Value Gain | 15,277,000 | 3,105,000 | |||
Estimated Fair Value Loss | 1,019,000 | 4,193,000 | |||
Interest rate swap | Non-designated hedges | Other Assets and Other Liabilities | Counterparty | |||||
Derivative Financial Instruments | |||||
Notional Amount | 564,068,000 | 368,513,000 | |||
Estimated Fair Value Gain | 73,000 | 718,000 | |||
Estimated Fair Value Loss | 15,475,000 | 129,000 | |||
Foreign exchange contract | |||||
Derivative Financial Instruments | |||||
Gain or loss recorded | $ 0 | $ 0 |
Loan Servicing, Mortgage Orig_3
Loan Servicing, Mortgage Origination, and Loans Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
MSRs | |||||
Changes in the fair value of MSRs and its offsetting hedge. | |||||
Increase (decrease) in fair value of MSRs | $ (6,976) | $ 1,861 | $ (595) | ||
Decay of MSRs | (4,589) | (4,215) | (3,762) | ||
Gains (loss) related to derivatives | 3,967 | (953) | 200 | ||
Net effect on statements of income | $ (7,598) | $ (3,307) | $ (4,157) | ||
Characteristics and sensitivity analysis of the MSR | |||||
Composition of residential loans serviced for others | 100.00% | 100.00% | |||
Weighted average life (in years) | 6 years 6 months 18 days | 7 years 10 months 17 days | |||
Constant Prepayment rate (CPR) (as a percent) | 10.30% | 7.30% | |||
Weighted average discount rate (as a percent) | 9.40% | 9.40% | |||
Effect on fair value due to change in interest rates: | |||||
25 basis point increase | $ 2,477 | $ 1,504 | |||
50 basis point increase | 4,452 | 2,740 | |||
25 basis point decrease | (2,938) | (1,981) | |||
50 basis point decrease | (6,228) | (4,421) | |||
Custodial escrow balances maintained in connection with the loan servicing | $ 16,500 | $ 16,200 | |||
Fixed-rate mortgage loans | |||||
Characteristics and sensitivity analysis of the MSR | |||||
Composition of residential loans serviced for others | 99.80% | 99.80% | |||
Adjustable-rate mortgage loans | |||||
Characteristics and sensitivity analysis of the MSR | |||||
Composition of residential loans serviced for others | 0.20% | 0.20% | |||
First Financial Holdings, Inc. ("First Financial") | |||||
Loans held for sale, loan servicing and mortgage origination | |||||
Residential mortgages serviced for others | $ 3,300,000 | $ 3,100,000 | |||
Contractually specified servicing fees earned | $ 7,800 | $ 7,600 | |||
First Financial Holdings, Inc. ("First Financial") | MSRs | |||||
Loans held for sale, loan servicing and mortgage origination | |||||
Mortgage servicing rights | 34,700 | 34,700 | $ 30,500 | $ 34,700 | |
Analysis of the activity in the MSRs | |||||
Balance at beginning of the period | 34,700 | ||||
Balance at end of period | $ 30,500 | $ 34,700 |
Loan Servicing, Mortgage Orig_4
Loan Servicing, Mortgage Origination, and Loans Held for Sale - Mandatory cash forwards (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | ||
Loan sales | $ 812,300 | $ 645,700 |
Loan securitizations and loan sales | $ 660,600 | $ 498,700 |
Percentage of loan securitizations and loan sales | 81.30% | 77.20% |
Loans held for sale | $ 59,363 | $ 22,925 |
Residential mortgage loans awaiting sale in secondary market | Minimum | ||
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | ||
Loans held for sale, settlement period | 15 days | |
Residential mortgage loans awaiting sale in secondary market | Maximum | ||
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | ||
Loans held for sale, settlement period | 45 days |
Investments in Qualified Affo_2
Investments in Qualified Affordable Housing Projects (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investment In Qualified Affordable Housing Projects. | ||
Tax credits and other tax benefits | $ 5.9 | $ 4.6 |
Amortization | 6.1 | 3.8 |
Carrying value | 77.2 | 44 |
Original investment value | 97.3 | 97.3 |
Funding obligation | 36.1 | $ 17.5 |
Amount repaid | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 25, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 20, 2020 | Jun. 30, 2019 | Jan. 31, 2019 |
Subsequent events | ||||||||
Cost of shares repurchased | $ 2,486 | $ 2,173 | $ 5,512 | |||||
2019 Stock Repurchase Program | ||||||||
Subsequent events | ||||||||
Shares authorized under repurchase program | 2,000,000 | 1,000,000 | ||||||
Number of shares repurchased | 1,165,000 | |||||||
Share Price | $ 74.72 | |||||||
Center State Bank Corporation | ||||||||
Subsequent events | ||||||||
Total assets | $ 17,100,000 | |||||||
Loans | 12,000,000 | |||||||
Deposits | $ 13,100,000 | |||||||
Common stock shares outstanding | 125,174,000 | |||||||
Subsequent event | 2019 Stock Repurchase Program | ||||||||
Subsequent events | ||||||||
Number of shares repurchased | 160,000 | |||||||
Share Price | $ 77.63 | |||||||
Cost of shares repurchased | $ 12,400 | |||||||
Additional shares available for repurchase | 675,000 | |||||||
Subsequent event | Center State Bank Corporation | ||||||||
Subsequent events | ||||||||
Aggregate consideration | $ 2,900,000 | |||||||
Business Acquisition, Share Price | $ 0.3001 | |||||||
Ownership percentage | 47.00% | |||||||
Share Price | $ 78.16 | |||||||
Subsequent event | Center State Bank Corporation | CenterState Shareholders [Member] | ||||||||
Subsequent events | ||||||||
Ownership percentage | 53.00% |