Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 23, 2022 | Jun. 30, 2021 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
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 | 1101 First Street South, Suite 202, | ||
Entity Address, City or Town | Winter Haven | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33880 | ||
City Area Code | 863 | ||
Local Phone Number | 293-4710 | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,681,031,000 | ||
Entity Common Stock, Shares Outstanding | 68,846,449 | ||
Auditor Name | Dixon Hughes Goodman LLP | ||
Auditor Firm ID | 57 | ||
Auditor Location | Atlanta, Georgia | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000764038 | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 476,653 | $ 363,306 |
Federal funds sold and interest-earning deposits with banks | 6,018,915 | 3,582,410 |
Deposits in other financial institutions (restricted cash) | 347,579 | 663,539 |
Total cash and cash equivalents | 6,843,147 | 4,609,255 |
Trading securities, at fair value | 77,689 | 10,674 |
Investment securities: | ||
Securities held to maturity (fair value of $1,778,064 and $957,183) | 1,819,901 | 955,542 |
Securities available for sale, at fair value | 5,193,478 | 3,330,672 |
Other investments | 160,568 | 160,443 |
Total investment securities | 7,173,947 | 4,446,657 |
Loans held for sale | 191,723 | 290,467 |
Loans: | ||
Total loans | 23,928,166 | 24,664,134 |
Less allowance for credit losses | (301,807) | (457,309) |
Loans, net | 23,626,359 | 24,206,825 |
Other real estate owned | 2,736 | 11,914 |
Bank property held for sale | 9,578 | 36,006 |
Premises and equipment, net | 558,499 | 579,239 |
Bank owned life insurance ("BOLI") | 783,049 | 559,368 |
Deferred tax assets | 64,964 | 110,946 |
Derivatives assets | 414,742 | 813,899 |
Mortgage servicing rights | 65,620 | 43,820 |
Core deposit and other intangibles | 128,067 | 162,592 |
Goodwill | 1,581,085 | 1,563,942 |
Other assets | 438,827 | 344,269 |
Total assets | 41,960,032 | 37,789,873 |
Deposits: | ||
Noninterest-bearing | 11,498,840 | 9,711,338 |
Interest-bearing | 23,555,989 | 20,982,544 |
Total deposits | 35,054,829 | 30,693,882 |
Federal funds purchased | 381,195 | 384,735 |
Securities sold under agreements to repurchase | 400,044 | 394,931 |
Corporate and subordinated debentures | 327,066 | 390,179 |
Reserve for unfunded commitments | 30,510 | 43,380 |
Derivative liabilities | 410,137 | 804,832 |
Other liabilities | 553,311 | 430,054 |
Total liabilities | 37,157,092 | 33,141,993 |
Shareholders' equity: | ||
Common stock - $2.50 par value; authorized 160,000,000 shares; 69,332,297 and 70,973,477 shares issued and outstanding, respectively | 173,331 | 177,434 |
Surplus | 3,653,098 | 3,765,406 |
Retained earnings | 997,657 | 657,451 |
Accumulated other comprehensive (loss) income | (21,146) | 47,589 |
Total shareholders' equity | 4,802,940 | 4,647,880 |
Total liabilities and shareholders' equity | 41,960,032 | 37,789,873 |
Acquired - non-purchased credit deteriorated loans | ||
Loans: | ||
Total loans | 5,890,069 | 9,458,869 |
Acquired - purchased credit deteriorated loans | ||
Loans: | ||
Total loans | 1,987,322 | 2,915,809 |
Non-acquired loans | ||
Loans: | ||
Total loans | $ 16,050,775 | $ 12,289,456 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investment securities: | ||
Securities held to maturity, fair value (in dollars) | $ 1,778,064 | $ 957,183 |
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 160,000,000 | 160,000,000 |
Common stock, shares issued | 69,332,297 | 70,973,477 |
Common stock, shares outstanding | 69,332,297 | 70,973,477 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest income: | |||
Loans, including fees | $ 990,519 | $ 851,199 | $ 534,790 |
Investment securities: | |||
Taxable | 76,850 | 47,420 | 39,949 |
Tax-exempt | 10,715 | 7,212 | 6,186 |
Federal funds sold, securities purchased under agreements to resell and interest-bearing deposits with banks | 6,763 | 4,198 | 9,902 |
Total interest income | 1,084,847 | 910,029 | 590,827 |
Interest expense: | |||
Deposits | 33,182 | 55,442 | 65,920 |
Federal funds purchased and securities sold under agreements to repurchase | 1,189 | 1,950 | 2,627 |
Corporate and subordinated debentures | 17,214 | 12,968 | 5,641 |
Other borrowings | 44 | 13,204 | 12,364 |
Total interest expense | 51,629 | 83,564 | 86,552 |
Net interest income | 1,033,218 | 826,465 | 504,275 |
(Recovery) provision for credit losses | (165,273) | 235,989 | 12,777 |
Net interest income after (recovery) provision for credit losses | 1,198,491 | 590,476 | 491,498 |
Noninterest income: | |||
Securities gains, net | 102 | 50 | 2,711 |
Recoveries on acquired loans | 6,847 | ||
Other income | 36,881 | 26,389 | 8,872 |
Total noninterest income | 354,209 | 311,140 | 143,565 |
Noninterest expense: | |||
Salaries and employee benefits | 552,030 | 416,599 | 234,747 |
Occupancy expense | 92,225 | 75,587 | 47,457 |
Information services expense | 74,417 | 59,843 | 35,477 |
OREO expense and loan related expense | 2,029 | 3,568 | 3,242 |
Pension plan termination expense | 9,526 | ||
Amortization of intangibles | 35,192 | 26,992 | 13,084 |
Supplies, printing and postage expense | 9,659 | 8,679 | 5,881 |
Professional fees | 10,629 | 14,033 | 10,325 |
FDIC assessment and other regulatory charges | 17,982 | 10,713 | 4,545 |
Advertising and marketing | 7,959 | 4,092 | 4,309 |
Extinguishment of debt cost | 11,706 | ||
Merger and branch consolidation related expense | 67,242 | 85,906 | 4,552 |
Swap termination expense | 38,787 | ||
Other expense | 67,351 | 52,845 | 31,493 |
Total noninterest expense | 948,421 | 797,644 | 404,638 |
Earnings: | |||
Income before provision for (benefit of) income taxes | 604,279 | 103,972 | 230,425 |
Provision for (benefit of) income taxes | 128,736 | (16,660) | 43,942 |
Net income | $ 475,543 | $ 120,632 | $ 186,483 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 6.76 | $ 2.20 | $ 5.40 |
Diluted (in dollars per share) | $ 6.71 | $ 2.19 | $ 5.36 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 70,393 | 54,756 | 34,561 |
Diluted (in shares) | 70,889 | 55,063 | 34,797 |
Fees on deposit accounts | |||
Noninterest income: | |||
Noninterest income | $ 105,641 | $ 84,319 | $ 75,435 |
Mortgage banking income | |||
Noninterest income: | |||
Noninterest income | 64,599 | 106,202 | 17,564 |
Trust and investment services income | |||
Noninterest income: | |||
Noninterest income | 36,981 | 29,437 | 29,244 |
Correspondent banking and capital market income | |||
Noninterest income: | |||
Noninterest income | $ 110,005 | $ 64,743 | $ 2,892 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 475,543 | $ 120,632 | $ 186,483 |
Unrealized holding (losses) gains on available for sale securities: | |||
Unrealized holding (losses) gains arising during period | (90,350) | 47,401 | 36,211 |
Tax effect | 21,485 | (11,544) | (7,966) |
Reclassification adjustment for (gains) losses included in net income | (102) | (50) | 2,655 |
Tax effect | 24 | 11 | (584) |
Net of tax amount | (68,943) | 35,818 | 30,316 |
Unrealized (losses) gains on derivative financial instruments qualifying as cash flow hedges: | |||
Unrealized holding losses arising during period | (33,512) | (13,394) | |
Tax effect | 7,372 | 2,947 | |
Reclassification adjustment for (gains) losses included in interest expense | 47,303 | (349) | |
Tax effect | (10,407) | 77 | |
Net of tax amount | 10,756 | (10,719) | |
Change in pension plan and retiree medical plan obligation: | |||
Change in pension and retiree medical plan obligation during period | 98 | (160) | 25 |
Tax effect | (23) | 41 | (5) |
Reclassification adjustment for changes included in net income | 174 | 152 | 8,053 |
Tax effect | (41) | (35) | (1,772) |
Net of tax amount | 208 | (2) | 6,301 |
Other comprehensive (loss) income, net of tax | (68,735) | 46,572 | 25,898 |
Comprehensive income | $ 406,808 | $ 167,204 | $ 212,381 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Surplus | Retained EarningsCumulative Effect of Adoption of ASU | Retained Earnings | Accumulated Other Comprehensive (Loss) Gain | Cumulative Effect of Adoption of ASU | Total |
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 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 186,483 | 186,483 | |||||
Other comprehensive Income (loss), net of tax effects | 25,898 | 25,898 | |||||
Total 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 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 120,632 | 120,632 | |||||
Other comprehensive Income (loss), net of tax effects | 46,572 | 46,572 | |||||
Total comprehensive income | 167,204 | ||||||
Cash dividends declared on common stock per share | (98,256) | (98,256) | |||||
Employee stock purchases | $ 81 | 1,456 | 1,537 | ||||
Employee stock purchases (in shares) | 32,476 | ||||||
Stock options exercised | $ 131 | 1,550 | 1,681 | ||||
Stock options exercised (in shares) | 52,331 | ||||||
Restricted stock awards | $ 22 | (22) | |||||
Restricted stock awards (in shares) | 8,828 | ||||||
Stock issued pursuant to restricted stock units | $ 768 | (768) | |||||
Stock issued pursuant to restricted stock units (in shares) | 307,096 | ||||||
Common stock repurchased - buyback plan | $ (800) | (23,915) | (24,715) | ||||
Common stock repurchased - buyback plan (in shares) | (320,000) | ||||||
Common stock repurchased | $ (307) | (7,409) | (7,716) | ||||
Common stock repurchased (in shares) | (122,708) | ||||||
Share-based compensation expense | 23,318 | 23,318 | |||||
Common stock issued for acquisition | $ 93,178 | 2,153,149 | 2,246,327 | ||||
Common stock issued for acquisition (in shares) | 37,271,069 | ||||||
Stock options and restricted stock acquired and converted pursuant to CenterState acquisition | 10,307 | 10,307 | |||||
Balance (ASU 2016-13) at Dec. 31, 2020 | $ (44,820) | $ (44,820) | |||||
Balance at Dec. 31, 2020 | $ 177,434 | 3,765,406 | 657,451 | 47,589 | $ 4,647,880 | ||
Balance (in shares) at Dec. 31, 2020 | 70,973,477 | 70,973,477 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 475,543 | $ 475,543 | |||||
Other comprehensive Income (loss), net of tax effects | (68,735) | (68,735) | |||||
Total comprehensive income | 406,808 | ||||||
Cash dividends declared on common stock per share | (135,201) | (135,201) | |||||
Cash dividends equivalents paid on restricted stock units | (136) | (136) | |||||
Employee stock purchases | $ 83 | 2,301 | 2,384 | ||||
Employee stock purchases (in shares) | 33,013 | ||||||
Stock options exercised | $ 160 | 2,745 | 2,905 | ||||
Stock options exercised (in shares) | 64,075 | ||||||
Stock issued pursuant to restricted stock units | $ 233 | (233) | |||||
Stock issued pursuant to restricted stock units (in shares) | 93,085 | ||||||
Common stock repurchased - buyback plan | $ (4,545) | (141,823) | (146,368) | ||||
Common stock repurchased - buyback plan (in shares) | (1,817,941) | ||||||
Common stock repurchased | $ (34) | (1,019) | (1,053) | ||||
Common stock repurchased (in shares) | (13,412) | ||||||
Share-based compensation expense | 25,721 | 25,721 | |||||
Balance at Dec. 31, 2021 | $ 173,331 | $ 3,653,098 | $ 997,657 | $ (21,146) | $ 4,802,940 | ||
Balance (in shares) at Dec. 31, 2021 | 69,332,297 | 69,332,297 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements of Changes in Shareholders' Equity | |||
Common stock cash dividends declared, per share (in dollars per share) | $ 1.92 | $ 1.88 | $ 1.67 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 475,543 | $ 120,632 | $ 186,483 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 63,137 | 46,367 | 33,121 |
(Recovery) provision for credit losses | (165,273) | 235,989 | 12,777 |
Deferred income taxes | 67,850 | (44,282) | (1,492) |
Gains on sale of securities, net | (102) | (50) | (2,711) |
Share-based compensation expense | 25,721 | 23,318 | 8,839 |
Accretion of discount related to acquired loans | (29,658) | (56,170) | (12,986) |
Extinguishment of debt cost - fair value marks | 11,706 | ||
Losses on disposal of premises and equipment | 856 | 5,010 | 3,617 |
(Gains) losses on sale of bank properties held for sale and repossessed real estate | (2,329) | (546) | 178 |
Net amortization of premiums on investment securities | 38,025 | 22,231 | 7,260 |
Bank properties held for sale and repossessed real estate write downs | 2,067 | 1,085 | 1,193 |
Fair value adjustment for loans held for sale | 6,920 | 4,705 | (1,057) |
Originations and purchases of loans held for sale | (3,045,145) | (2,959,310) | (847,684) |
Proceeds from sales of loans held for sale | 3,209,094 | 3,297,155 | 824,712 |
Gains on sales of loans held for sale | (72,124) | (120,077) | (12,408) |
Increase in cash surrender value of BOLI | (18,221) | (10,170) | (5,567) |
Net change in: | |||
Accrued interest receivable | 17,083 | (19,362) | (777) |
Prepaid assets | (1,250) | (8,945) | (2,411) |
Operating leases | 2,053 | 6,434 | 1,457 |
Bank owned life insurance | (202) | (1,231) | 1,105 |
Trading securities | (35,154) | (10,674) | |
Derivative assets | 399,157 | 98,807 | (10,373) |
Miscellaneous other assets | (79,312) | 27,365 | (29,932) |
Accrued interest payable | (3,759) | (3,683) | 197 |
Accrued income taxes | (53,843) | (77,946) | (8,536) |
Derivative liabilities | (394,695) | (113,788) | 26,064 |
Miscellaneous other liabilities | 119,120 | 74,079 | 9,959 |
Net cash provided by operating activities | 537,265 | 536,943 | 181,028 |
Cash flows from investing activities: | |||
Proceeds from sales of investment securities available for sale | 151,314 | 100,754 | 242,733 |
Proceeds from maturities and calls of investment securities held to maturity | 104,958 | 2,534 | |
Proceeds from maturities and calls of investment securities available for sale | 805,342 | 957,250 | 308,109 |
Proceeds from sales and redemptions of other investment securities | 1,533 | 71,788 | 45 |
Purchases of investment securities available for sale | (2,941,888) | (1,309,450) | (955,505) |
Purchases of investment securities held to maturity | (975,266) | (958,391) | |
Purchases of other investment securities | (1,659) | (85,511) | (23,566) |
Net decrease (increase) in loans | 745,085 | (156,360) | (363,446) |
Net cash (paid in) received from acquisitions | (39,929) | ||
Net cash (paid in) received from acquisitions | 2,566,376 | ||
Recoveries of loans previously charged off | 13,800 | 11,776 | 3,914 |
Purchase of bank owned life insurance | (205,566) | ||
Purchases of premises and equipment | (28,418) | (16,930) | (15,798) |
Proceeds from redemption and payout of bank owned life insurance policies | 307 | 19,655 | |
Proceeds from sale of bank properties held for sale and repossessed real estate | 42,657 | 19,156 | 8,450 |
Proceeds from sale of premises and equipment | 8,469 | 7,131 | 11 |
Net cash (used in) provided by investing activities | (2,319,261) | 1,229,778 | (795,053) |
Cash flows from financing activities: | |||
Net increase in deposits | 4,367,662 | 2,902,023 | 530,163 |
Net increase in federal funds purchased and securities sold under agreements to repurchase and other short-term borrowings | 1,573 | 79,379 | 28,092 |
Proceeds from borrowings | 25,000 | 500,000 | 700,001 |
Repayment of borrowings | (100,878) | (1,200,103) | (150,007) |
Common stock issuance | 2,384 | 1,537 | 1,394 |
Common stock repurchases | (147,421) | (32,431) | (159,431) |
Dividends paid | (135,337) | (98,256) | (57,696) |
Stock options exercised | 2,905 | 1,681 | 1,230 |
Net cash provided by financing activities | 4,015,888 | 2,153,830 | 893,746 |
Net increase in cash and cash equivalents | 2,233,892 | 3,920,551 | 279,721 |
Cash and cash equivalents at beginning of period | 4,609,255 | 688,704 | 408,983 |
Cash and cash equivalents at end of period | 6,843,147 | 4,609,255 | 688,704 |
Cash paid for: | |||
Interest | 55,387 | 87,246 | 86,355 |
Income taxes | 126,207 | 103,801 | 55,674 |
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 | 9,623 | 9,426 | 10,239 |
Acquisitions: | |||
Fair value of tangible assets acquired | 34,838 | 18,825,354 | |
Other intangible assets acquired | 140,862 | ||
Liabilities assumed | 2,343 | 17,270,550 | |
Net identifiable assets acquired over liabilities assumed | 15,816 | 561,042 | |
Common stock issued in acquisition | 2,246,327 | ||
Real estate acquired in full or in partial settlement of loans | $ 3,642 | $ 4,660 | $ 8,666 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1—Summary of Significant Accounting Policies Nature of Operations SouthState Corporation is a financial holding company headquartered in Winter Haven, Florida, and was incorporated under the laws of South Carolina in 1985. We provide a wide range of banking services and products to our customers through our Bank. The Bank operates SouthState Advisory, Inc., a wholly owned registered investment advisor. The Bank also operates Duncan-Williams, Inc. (“Duncan-Williams”), which it acquired on February 1, 2021. Duncan-Williams is a registered broker-dealer, headquartered in Memphis, Tennessee, that serves primarily institutional clients across the U.S. in the fixed income business. The Bank also owns CBI Holding Company, LLC (“CBI”), which in turn owns Corporate Billing, LLC (“Corporate Billing”), a transaction-based finance company headquartered in Decatur, Alabama that provides factoring, invoicing, collection and accounts receivable management services to transportation companies and automotive parts and service providers nationwide. The holding company owns SSB Insurance Corp., a captive insurance subsidiary pursuant to Section 831(b) of the U.S. Tax Code. R4ALL, Inc., the holding company’s subsidiary that managed a troubled loan purchased from the Bank, dissolved effective October 29, 2021. The Company also operates a correspondent banking division within the national bank subsidiary, of which the majority of its bond salesmen, traders and operational personnel are housed in facilities located in Birmingham, Alabama and Atlanta, Georgia. The Bank provides general banking services within a six (6) state footprint in Alabama, Florida, Georgia, North Carolina, South Carolina and Virginia.. The accounting and reporting policies of the Company and its consolidated subsidiary conform to accounting principles generally accepted in the United States of America (‘U.S. GAAP”). There are 13 unconsolidated subsidiaries of the Company that were established for the purpose of issuing in the aggregate approximately $118.6 million of trust preferred securities at December 31, 2021. During 2021, seven unconsolidated subsidiaries of the Company, approximately $39.9 million of trust preferred securities in the aggregate, were dissolved as the Company redeemed the trust preferred debt. Unless otherwise mentioned or unless the context requires otherwise, references herein to "SouthState," the "Company" "we," "us," "our" or similar references mean SouthState Corporation and its consolidated subsidiaries. References to the “Bank” means SouthState Bank, National Association. 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 Bank subsidiary, provides a broad range of financial services to individuals and companies in South Carolina, North Carolina, Florida, Alabama, Georgia and Virginia. These services include demand, time and savings deposits; lending and credit card servicing; ATM processing; mortgage banking services; correspondent 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 credit losses for loans and investment securities held to maturity, 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 impairment of investment securities, goodwill impairment tests and valuation of deferred tax assets. In connection with the determination of the allowance for credit 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 models based on macroeconomic factors and forecasts. Management believes that the allowance for credit 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 forecasts. In addition, regulatory agencies, as an integral part of the examination process, periodically review the banking subsidiary’s allowance for credit 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 Bank subsidiary grants agribusiness, commercial, and residential loans to customers throughout South Carolina, North Carolina, Florida, Alabama, 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, Florida, Alabama, 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 Tier 1 capital plus regulatory adjusted allowance for credit losses of the Company, or $860.6 million at December 31, 2021. Based on this criteria, we had seven such credit concentrations at December 31, 2021, including loans on hotels and motels of $892.6 million, loans to lessors of nonresidential buildings (except mini-warehouses) of $4.7 billion, loans secured by owner occupied office buildings (including medical office buildings) of $1.8 billion, loans secured by owner occupied nonresidential buildings (excluding office buildings) of $1.7 billion, loans to lessors of residential buildings (investment properties and multi-family) of $1.3 billion, loans secured by 1 st st billion. 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 ACL 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 including restricted pledged cash, 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. When the Company enters into such repurchase agreements, the securities purchased under agreements to resell generally consist of U.S. government-sponsored entities and agency mortgage- backed securities. The Company may elect to use other asset classes at its discretion. It is the Company’s practice 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, 2021. Trading Securities Through its Correspondent Banking Department and its wholly owned broker dealer Duncan-Williams Inc., the Company purchases trading securities and subsequently sells them to their customers to take advantage of market opportunities, when presented, for short-term revenue gains. Securities purchased for this portfolio are primarily municipals, treasuries and mortgage-backed agency securities and are held for short periods of time. This portfolio is carried at fair value and realized and unrealized gains and losses are included in trading securities revenue, a component of Correspondent Banking and Capital Market Income in our Consolidated Statements of Net Income. 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. Gains and losses realized on sales of securities available for sale are determined using the specific identification method. Management no longer evaluates securities for other-than-temporary impairment, otherwise referred to herein as Other Than Temporary Impairment (“OTTI”), as ASC Subtopic 326-30, Financial Instruments—Credit Losses—Available for sale Debt Securities , changes the accounting for recognizing impairment on available for sale debt securities. Each quarter Management evaluates impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value. Management considers the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security’s fair value and historical loss information for financial assets secured with similar collateral among other factors. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby Management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component would be recognized through the Provision for Credit Losses in the Consolidated Statements of Income. (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 and Federal Reserve Bank (“FRB”) 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 consist 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 The Company sells residential mortgages to government sponsored entities (“GSEs “) and mortgage and third-party investors, who may issue securities backed by pools of such loans. The Company retains no beneficial interests in these sales, but may retain the servicing rights for the loans sold. The Company is obligated to subsequently repurchase a loan if the purchaser discovers a representation or warranty violation such as noncompliance with eligibility or servicing requirements, or customer fraud, that should have been identified in a loan file review. Mortgage loans held for sale are accounted for at fair value on an individual loan basis. Estimated fair value is determined on the basis of existing forward commitments, or the current market value of similar loans. Changes in the fair value, and realized gains and losses on the sales of mortgage loans, are reported in Mortgage Banking Income, a component of Noninterest Income in our Consolidated Statements of Income. 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 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 evaluated individually for loss when it is on nonaccrual and has a net book balance over $1 million. Large pools of homogeneous loans are collectively evaluated for loss and reserved at the pool level. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as nonaccrual, provided that Management expects to collect all amounts due, including interest accrued at the contractual interest rate for the period of delay. Troubled Debt Restructurings (“TDRs”) The Bank measures expected credit losses over the contractual term of a loan. When determining the contractual term, the Company considers expected prepayments but is precluded from considering expected extensions, renewals, or modifications, unless the Company reasonably expects it will execute a TDR with a borrower. In the event of a reasonably-expected TDR, the Company factors the reasonably-expected TDR into the current expected credit losses estimate. For consumer loans, the point at which a TDR is reasonably expected is when the Company approves the borrower’s application for a modification (i.e., the borrower qualifies for the TDR) or when the Credit Administration department approves loan concessions on substandard loans. For commercial loans, the point at which a TDR is reasonably expected is when the Company approves the loan for modification or when the Credit Administration department approves loan concessions on substandard loans. The Company uses a discounted cash flow methodology for a TDR to calculate the effect of the concession provided to the borrower within the allowance for credit losses. Allowance for Credit Losses (“ACL”) On January 1, 2020, we adopted the requirements of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , sometimes referred to herein as ASU 2016-13. Topic 326 was subsequently amended by ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses Financial Instruments-Credit Losses Financial Instruments-Credit Losses Derivatives and Hedging Financial Instruments . This standard applies to all financial assets measured at amortized cost and off balance sheet credit exposures, including loans, investment securities and unfunded commitments. We applied the standard’s provisions using the modified retrospective method as a cumulative-effect adjustment to retained earnings as of January 1, 2020. With this transition method, we did not have to restate comparative prior periods presented in the financial statements related to Topic 326, but will present comparative prior periods disclosures using the previous accounting guidance for the allowance for loan losses. 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. ACL – Investment Securities Management uses a systematic methodology to determine its ACL for investment securities held to maturity. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the held to maturity portfolio. Management considers the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the portfolio. The Company’s estimate of its ACL involves a high degree of judgment; therefore, Management’s process for determining expected credit losses may result in a range of expected credit losses. Management monitors the held to maturity portfolio to determine whether a valuation account will need to be recorded. As of December 31, 2021, the Company had $1.8 billion of held to maturity securities and no related valuation account. As of December 31, 2021, the held to maturity portfolio consisted of U.S. Government Agency, U.S. Government Agency Residential and Commercial Mortgage-backed securities, and Small Business Administration loan-backed securities. Management does not believe that a fair value below amortized cost is due to credit related factors. Management no longer evaluates available for sale securities for other-than-temporary impairment, otherwise referred to herein as OTTI, as ASC Subtopic 326-30, Financial Instruments—Credit Losses—Available for sale Debt Securities , changes the accounting for recognizing impairment on available for sale debt securities. Each quarter Management evaluates impairment where there has been a decline in fair value below the amortized cost basis of an available for sale security to determine whether there is a credit loss associated with the decline in fair value. Management considers the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security’s fair value and historical loss information for financial assets secured with similar collateral among other factors. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby Management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component would be recognized through the provision for credit losses in the Statements of Income. Management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the investment securities and does not record an allowance for credit losses on accrued interest receivable. As of December 31, 2021 and December 31, 2020, the accrued interest receivables for investment securities recorded in Other Assets were $19.2 million and $13.1 million, respectively. ACL – Loans The ACL for loans held for investment reflects Management’s estimate of losses that will result from the inability of our borrowers to make required loan payments. The Company established the incremental increase in the ACL at adoption through equity and subsequent adjustments through a provision for or recovery of credit losses recorded to earnings. The Company records loans charged off against the ACL and subsequent recoveries, if any, increase the ACL when they are recognized. Management uses systematic methodologies to determine its ACL for loans held for investment and certain off-balance-sheet credit exposures. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the loan portfolio. Management considers the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the loan portfolio. The Company’s estimate of its ACL involves a high degree of judgment; therefore, Management’s process for determining expected credit losses may result in a range of expected credit losses. The Company’s ACL recorded in the balance sheet reflects Management’s best estimate within the range of expected credit losses. The Company recognizes in net income the amount needed to adjust the ACL for Management’s current estimate of expected credit losses. The Company’s ACL is calculated using collectively evaluated and individually evaluated loans. The allowance for credit losses is measured on a collective pool basis when similar risk characteristics exist. Loans with similar risk characteristics are grouped into homogenous segments, or pools, for analysis. The Discounted Cash Flow (“DCF”) method is utilized for each loan in a pool, and the results are aggregated at the pool level. A periodic tendency to default and absolute loss given default are applied to a projective model of the loan’s cash flow while considering prepayment and principal curtailment effects. The analysis produces expected cash flows for each instrument in the pool by pairing loan-level term information (e.g., maturity date, payment amount, interest rate, etc.) with top-down pool assumptions (e.g., default rates and prepayment speeds). The Company has identified the following portfolio segments: Owner-Occupied Commercial Real Estate, Non Owner-Occupied Commercial Real Estate, Multifamily, Municipal, Commercial and Industrial, Commercial Construction and Land Development, Residential Construction, Residential Senior Mortgage, Residential Junior Mortgage, Revolving Mortgage, and Consumer and Other. In determining the proper level of the ACL, Management has determined that the loss experience of the Bank provides the best basis for its assessment of expected credit losses. It therefore utilized its own historical credit loss experience by each loan segment over an economic cycle, while excluding loss experience from certain acquired institutions (i.e., failed banks). For most of the segment models for collectively evaluated loans, the Company incorporated two or more macroeconomic drivers using a statistical regression modeling methodology. Management considers forward-looking information in estimating expected credit losses. The Company subscribes to a third-party service which provides a quarterly macroeconomic baseline outlook and alternative scenarios for the United States economy. The baseline, along with the evaluation of alternative scenarios, is used by Management to determine the best estimate within the range of expected credit losses. Management has evaluated the appropriateness of the reasonable and supportable forecast scenarios and has made adjustments as needed. For the contractual term that extends beyond the reasonable and supportable forecast period, the Company reverts to the long term mean of historical factors within four quarters using a straight-line approach. The Company generally utilizes a four-quarter forecast and a four-quarter reversion period. Included in its systematic methodology to determine its ACL, Management considers the need to qualitatively adjust expected credit losses for information not already captured in the loss estimation process. These qualitative adjustments either increase or decrease the quantitative model estimation (i.e., formulaic model results). Each period the Company considers qualitative factors that are relevant within the qualitative framework that includes the following: 1) Lending Policy; 2) Economic conditions not captured in models; 3) Volume and Mix of Loan Portfolio; 4) Past Due Trends; 5) Concentration Risk; 6) External Factors; and 7) Model Limitations. When a loan no longer shares similar risk characteristics with its segment, the asset is assessed to determine whether it should be included in another pool or should be individually evaluated. The Company’s threshold for individually-evaluated loans includes all non-accrual loans with a net book balance in excess of $1.0 million. Management will monitor the credit environment and make adjustments to this threshold in the future if warranted. Based on the threshold above, consumer financial assets will generally remain in pools unless they meet the dollar threshold. The expected credit losses on individually-evaluated loans will be estimated based on discounted cash flow analysis unless the loan meets the criteria for use of the fair value of collateral, either by virtue of an expected foreclosure or through meeting the definition of collateral-dependent. Financial assets that have been individually evaluated can be returned to a pool for purposes of estimating the expected credit loss insofar as their credit profile improves and that the repayment terms were not considered to be unique to the asset. Management measures expected credit losses over the contractual term of a loan. When determining the contractual term, the Company considers expected prepayments but is precluded from considering expected extensions, renewals, or modifications, unless the Company reasonably expects it will execute a TDR with a borrower. In the event of a reasonably-expected TDR, the Company factors the reasonably-expected TDR into the current expected credit losses estimate. For consumer loans, the point at which a TDR is reasonably expected is when the Company approves the borrower’s application for a modification (i.e., the borrower qualifies for the TDR) or when the Credit Administration department approves loan concessions on substandard loans. For commercial loans, the point at which a TDR is reasonably expected is when the Company approves the loan for modification or when the Credit Administration department approves loan concessions on substandard loans. The Company uses a discounted cash flow methodology for a TDR to calculate the effect of the concession provided to the borrower within the ACL. A restructuring that results in only a delay in payments that is insignificant is not considered an economic concession. In accordance with the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, the Company implemented loan modification programs in response to the COVID-19 pandemic in order to provide borrowers with flexibility with respect to repayment terms. The Company’s payment relief assistance includes forbearance, deferrals, extension and re-aging programs, along with certain other modification strategies. The Company elected the accounting policy in the CARES Act to not apply TDR accounting to loans modified for borrowers impacted by the COVID-19 pandemic if the concession met the criteria as defined under the CARES Act. For purchased credit-deteriorated, otherwise referred to herein as PCD, assets are defined as acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. The Company records acquired PCD loans by adding the expected credit losses (i.e., allowance for credit losses) to the purchase price of the financial assets rather than recording through the provision for credit losses in the income statement. The expected credit loss, as of the acquisition day, of a PCD loan is added to the allowance for credit losses. The non-credit discount or premium is the difference between the unpaid principal balance and the amortized cost basis as of the acquisition date. Subsequent to the acquisition date, the change in the ACL on PCD loans is recognized through the Provision for Credit Losses in the Consolidated Statements of Income. The non-credit discount or premium is accreted or amortized, respectively, into interest income over the remaining life of the PCD loan on a level-yield basis. In accordance with the transition requirements within the standard, the Company’s acquired credit-impaired loans (i.e., ACI or Purchased Credit Impaired) were treated as PCD loans. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Therefore, Management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the portfolio and does not record an allowance for credit losses on accrued interest receivable. As of December 31, 2021 and December 31, 2020, the accrued interest receivables for loans recorded in Other Assets were $70.6 million and $93.9 million, respectively. The Company has a variety of assets that have a component that qualifies as an off-balance sheet exposure. These primarily include undrawn portions of revolving lines of credit and standby letters of credit. The expected losses associated with these exposures within the unfunded portion of the expected credit loss will be recorded as a liability on the balance sheet. Management has determined that a majority of the Company’s off-balance-sheet credit exposures are not unconditionally cancellable. Management completes funding studies based on historical data to estimate the percentage of unfunded loan commitments that will ultimately be funded to calculate the reserve for unfunded commitments. Management applies this funding rate, along with the loss factor rate determined for each pooled loan segment, to unfunded loan commitments, excluding unconditionally cancellable exposures and letters of credit, to arrive at the reserve for unfunded loan commitments. As of December 31, 2021 and December 31, 2020, the liability recorded for expected credit losses on unfunded commitments was $30.5 million and $43.4 million, respectively. The current adjustment to the ACL for unfunded commitments is recognized through the Provision for Credit Losses in the Consolidated Statements of Income. Other Real Estate Owned and Bank Property Held For Sale Other real estate owned (“OREO”) consists of properties obtained through foreclosure or through a deed in lieu of foreclosure in satisfaction of loans. Prior to the merger with CSFL, the Company classified former branch sites as held for sale OREO. During the second quarter of 2020 and with the merger with CSFL, the Company elected to reclassify these assets as bank property held for sale and report on a separate line on the Consolidated Balance Sheet. Both OREO and bank property held for sale are recorded at the lower of cost or fair value and the fair value was 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, for OREO, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the ACL. At the time a bank pro |
Mergers and Acquisitions
Mergers and Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Mergers and Acquisitions | |
Mergers and Acquisitions | Note 2—Mergers and Acquisitions CenterState Bank Corporation On June 7, 2020, the Company acquired all of the outstanding common stock of CSFL, of Winter Haven, Florida, the bank holding company for CenterState Bank, N.A. (“CSB”), in a stock transaction. Pursuant to the Merger Agreement, (i) CSFL merged with and into the Company, with the Company continuing as the surviving corporation, and (ii) immediately following the merger, SouthState Bank, a South Carolina banking corporation and wholly owned bank subsidiary of the Company, merged with and into CSB, a national banking association and wholly owned bank subsidiary of CSFL, with CSB continuing as the surviving bank. In connection with the bank merger, CSB changed its name to “South State Bank, National Association”. CSFL common shareholders received shares of its common stock. In total, the purchase price for CSFL was million. During the fourth quarter 2020, the purchase price (consideration transferred) decreased by million. The stock options assumed reflect their intrinsic value based upon a Black Scholes valuation. In the acquisition, the Company acquired $13.0 billion of loans, including PPP loans, at fair value, net of $239.5 million, or 1.82%, estimated discount, including a fair value adjustment of $29.8 million recorded during the third quarter, to the outstanding principal balance, representing 113.9% of the Company’s total loans at December 31, 2019. Of the total loans acquired, Management identified billion that had more than insignificantly deteriorated since origination and were thus determined to be PCD loans. In its assumption of the deposit liabilities, the Company believed the deposits assumed from the acquisition have an intangible value. The Company applied ASC Topic 805, which prescribes the accounting for goodwill and other intangible assets such as core deposit intangibles, in a business combination. The Company determined the estimated fair value of the core deposit intangible asset totaled . In determining the valuation amount, deposits were analyzed based on factors such as type of deposit, deposit retention, interest rates and age of deposit relationships. During the third quarter 2020, the Company identified an additional intangible related to its correspondent banking business acquired in the CSFL merger of approximately million. As a result of the various measurement period adjustments identified during 2020 and 2021, goodwill was reduced by During the years ended December 31, 2021 and 2020, the Company incurred approximately $64.4 million and $83.0 million, respectively, of acquisition and branch consolidation costs related to this transaction. These acquisition costs are reported in merger and branch consolidation related expenses on the Company’s Consolidated Statements of Income. The CSFL 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 CSFL Adjustments Adjustments the Company Assets Cash and cash equivalents $ 2,566,450 $ — $ — $ 2,566,450 Investment securities 1,188,403 5,507 (a) — 1,193,910 Loans held for sale 453,578 — — 453,578 Loans, net of allowance and mark 12,969,091 (48,342) (b) 29,834 (b) 12,950,583 Premises and equipment 308,150 2,392 (c) 2,893 (c) 313,435 Intangible assets 1,294,211 (1,163,349) (d) 10,000 (d) 140,862 OREO and repossessed assets 10,849 (791) (e) (49) (e) 10,009 Bank owned life insurance 333,053 — — 333,053 Deferred tax asset 54,123 (8,681) (f) (7,820) (f) 37,622 Other assets 967,059 (604) (g) (1,069) (g) 965,386 Total assets $ 20,144,967 $ (1,213,868) $ 33,789 $ 18,964,888 Liabilities Deposits: Noninterest-bearing $ 5,291,443 $ — $ — $ 5,291,443 Interest-bearing 10,312,370 19,702 (h) — 10,332,072 Total deposits 15,603,813 19,702 — 15,623,515 Federal funds purchased and securities sold under agreements to repurchase 401,546 — — 401,546 Other borrowings 278,900 (7,401) (i) — 271,499 Other liabilities 977,725 (4,592) (j) 857 (j) 973,990 Total liabilities 17,261,984 7,709 857 17,270,550 Net identifiable assets acquired over (under) liabilities assumed 2,882,983 (1,221,577) 32,932 1,694,338 Goodwill — 600,483 (38,113) 562,370 Net assets acquired over liabilities assumed $ 2,882,983 $ (621,094) $ (5,181) $ 2,256,708 Consideration: SouthState Corporation common shares issued 37,271,069 Purchase price per share of the Company's common stock $ 60.27 Company common stock issued ($2,246,327) and cash exchanged for fractional shares ($74) $ 2,246,401 Stock option conversion 2,900 Restricted stock conversion 7,407 Fair value of total consideration transferred $ 2,256,708 (k) Explanation of fair value adjustments (a)— Represents the reversal of CSFL's existing fair value adjustments of $40.7 million and the adjustment to record securities at fair value (premium) totaling $46.2 million (includes reclassification of all securities held as HTM to AFS totaling $175.7 million). (b)— Represents approximately 2.04%, or $269.1 million, total mark of the loan portfolio including a 1.97%, or $259.7 million credit mark, based on a third-party valuation. Also, includes the reversal of CSFL's ending allowance for credit losses of million. Fair value was subsequently adjusted by (c)— Represents the MTM adjustment of $4.0 million on leased assets partially offset by the write-off of de minimis fixed assets of $1.6 million. Subsequently, the fair value on certain bank premises was adjusted by (d)— Represents approximately a 1.28% core deposit intangible, or $125.9 million from a third-party valuation. This amount is net of $84.9 million existing core deposit intangible and $1.2 billion of existing goodwill from CSFL’s prior transactions that was reversed. Approximately (e)— Represents the reversal of prior valuation reserves of $878,000 and recorded new valuation reserves of $1.7 million on both OREO and other repossessed assets. The fair value was subsequently adjusted based on gains and losses recognized from sales of OREO and other repossessed assets. (f)— Represents deferred tax assets related to fair value adjustments measured using an estimated tax rate of 22.0% . This includes an adjustment from the CSFL tax rate to our tax rate. The difference in tax rates relates to state income taxes. Additional deferred tax liability related to subsequent fair value adjustments identified and an updated estimated tax rate of 23.78% was approximately $7.8 million. (g)— Represents a valuation reserve of bank property held for sale of $4.4 million, a fair value adjustment of a lease receivable of $116,000 and a fair value adjustment of interest receivable of $501,000. These amounts are offset by positive fair value adjustment for investment in low income housing of $3.3 million. (h)— Represents estimated premium for fixed maturity time deposits of $20.2 million partially offset by the reversal of existing CSFL fair value adjustments related to time deposit marks from other merger transactions of $546,000. (i)— Represents the recording of a discount of $12.5 million on TRUPs from a third-party valuation partially offset by the reversal of the existing CSFL discount on TRUPs and other debt of $5.1 million. (j)— Represents the reversal of an existing $7.1 million unfunded commitment reserve at purchase date partially offset by a fair value adjustment to increase lease liabilities associated with leased facilities totaling $2.5 million. The discount rate applied to the bank owned life insurance split dollar liability was subsequently adjusted resulting in an increase in the other liability of $857,000 . (k)— The purchase price, or the fair value of total consideration transferred, decreased by $5.2 million to $2.9 million for stock options assumed and converted in the merger. The stock options assumed reflect their intrinsic value based upon a Black Sholes valuation. Comparative and Pro Forma Financial Information for the CSFL Acquisition Pro-forma data for the year ended December 31, 2020 listed in the table below presents pro-forma information as if the CSFL acquisition occurred at the beginning of 2020. These results combine the historical results of CSFL in the Company’s Consolidated Statements 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, 2020. Merger-related costs of $83.0 million from the CSFL acquisition were incurred during 2020 and were excluded from pro forma information below. No adjustments have been made to reduce the impact of any OREO write downs, investment securities sold or repayment of borrowings recognized by CSFL in 2020. The Company recorded expenses related to systems conversions and other costs of integration during the year 2020 and 2021 for the CSFL merger. The core system conversion for the CSFL merger was completed during the second quarter of 2021. The Company expects to achieve further operating cost savings and other business synergies as a result of the acquisition, which are not reflected in the pro forma amounts below. The total revenues presented below represent pro-forma net interest income plus pro-forma noninterest income. Pro Forma Year Ended (Dollars in thousands) December 31, 2020 Total revenues (net interest income plus noninterest income) $ 1,522,434 Net interest income $ 1,061,233 Net adjusted income available to the common shareholder $ 329,827 EPS - basic $ 4.66 EPS - diluted $ 4.64 The disclosures regarding the results of operations for CSFL subsequent to the acquisition date are omitted as this information is not practical to obtain. The majority of the fixed costs and purchase accounting entries were booked on the Company’s core system making it impractical to determine CSFL’s results of operation on a stand-alone basis. Duncan-Williams, Inc. (“Duncan-Williams”) On February 1, 2021, the Company completed its previously announced acquisition of Duncan-Williams, a 52-year-old family- and employee-owned registered broker-dealer, headquartered in Memphis, Tennessee, serving primarily institutional clients across the U.S. in the fixed income business. Duncan-Williams firm became an operating subsidiary of the Bank immediately following the transaction. In total, the purchase price for Duncan-Williams was $48.3 million, including an additional premium of $8.0 million that is payable three years from the date of acquisition. The acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805. The Company recognized goodwill on this acquisition of million. The goodwill is calculated based on the fair values of the assets acquired and liabilities assumed as of the acquisition date. Atlantic Capital Bancshares, Inc. (“Atlantic Capital”) On July 23, 2021, the Company and Atlantic Capital, a Georgia corporation, entered into an Agreement and Plan of Merger (the “Merger Agreement”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, Atlantic Capital will merge with and into the Company, with the Company continuing as the surviving corporation in the merger (the “Surviving Entity”). Immediately following the merger, Atlantic Capital’s wholly owned banking subsidiary, Atlantic Capital Bank, N.A. will merge with and into the Company’s wholly owned banking subsidiary, SouthState Bank, National Association, which will continue as the surviving bank in the bank merger. The Merger Agreement was unanimously approved by the Board of Directors of both companies and Atlantic Capital’s shareholders and has been approved by the Office of the Comptroller of the Currency (“OCC”) and the Federal Reserve Board. shares of the Company’s common stock for each share of Atlantic Capital common stock they own. The transaction is expected to close during the first quarter of 2022. At December 31, 2021, Atlantic Capital reported |
Securities
Securities | 12 Months Ended |
Dec. 31, 2021 | |
Securities | |
Securities | Note 3—Securities Investment Securities The following is the amortized cost and fair value of investment securities held to maturity: Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value December 31, 2021: U.S. Government agencies $ 112,913 $ — $ (2,627) $ 110,286 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,120,104 14 (24,278) 1,095,840 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 174,178 — (4,937) 169,241 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 350,116 304 (8,021) 342,399 Small Business Administration loan-backed securities 62,590 — (2,292) 60,298 $ 1,819,901 $ 318 $ (42,155) $ 1,778,064 December 31, 2020: U.S. Government agencies $ 25,000 $ 1 $ — $ 25,001 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 632,269 1,827 (1,032) 633,064 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 75,767 405 — 76,172 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 174,506 300 (91) 174,715 Small Business Administration loan-backed securities 48,000 231 — 48,231 $ 955,542 $ 2,764 $ (1,123) $ 957,183 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, 2021: U.S. Government agencies $ 98,882 $ — $ (1,765) $ 97,117 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,851,700 5,324 (25,985) 1,831,039 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 730,949 5,957 (10,911) 725,995 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,220,233 5,438 (18,430) 1,207,241 State and municipal obligations 798,211 16,697 (2,219) 812,689 Small Business Administration loan-backed securities 502,812 2,330 (4,479) 500,663 Corporate securities 18,509 234 (9) 18,734 $ 5,221,296 $ 35,980 $ (63,798) $ 5,193,478 December 31, 2020: U.S. Government agencies $ 29,882 $ 16 $ (642) $ 29,256 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,351,506 16,657 (1,031) 1,367,132 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 739,797 16,579 (825) 755,551 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 229,219 10,939 (50) 240,108 State and municipal obligations 502,575 17,491 (27) 520,039 Small Business Administration loan-backed securities 401,496 4,978 (1,590) 404,884 Corporate securities 13,562 140 — 13,702 $ 3,268,037 $ 66,800 $ (4,165) $ 3,330,672 The following is the amortized cost and carrying value of other investment securities: Carrying (Dollars in thousands) Value December 31, 2021: Federal Home Loan Bank stock $ 16,283 Federal Reserve Bank stock 129,716 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 11,006 $ 160,568 December 31, 2020: Federal Home Loan Bank stock $ 15,083 Federal Reserve Bank stock 129,871 Investment in unconsolidated subsidiaries 4,941 Other nonmarketable investment securities 10,548 $ 160,443 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, 2021, 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, 2021 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 Securities Held to Maturity Available for Sale Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ — $ — $ 7,263 $ 7,296 Due after one year through five years — — 132,157 133,418 Due after five years through ten years 140,439 135,931 920,768 919,669 Due after ten years 1,679,462 1,642,133 4,161,108 4,133,095 $ 1,819,901 $ 1,778,064 $ 5,221,296 $ 5,193,478 The following table summarizes information with respect to sales of available for sale securities: Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Securities Available for Sale: Sale proceeds $ 151,314 $ 100,754 $ 242,733 Gross realized gains 750 662 6,030 Gross realized losses (648) (612) (3,319) Net realized gain $ 102 $ 50 $ 2,711 There was a net realized gain of $102,000 on the sale of securities for the year ended December 31, 2021, compared to a net gain of $50,000 and $2.7 million for the years ended December 31, 2020 and 2019, 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 years ended December 31, 2021, 2020 or 2019. The Company had 296 securities with gross unrealized losses at December 31, 2021. Information pertaining to securities with gross unrealized losses at December 31, 2021 and 2020, 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 Unrealized Fair Gross Unrealized Fair (Dollars in thousands) Losses Value Losses Value December 31, 2021: Securities Held to Maturity U.S. Government agencies $ 1,745 $ 86,168 $ 882 $ 24,118 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 18,768 868,327 5,510 184,819 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 4,937 169,240 — — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 4,902 154,963 3,119 75,450 Small Business Administration loan-backed securities 1,281 37,408 1,011 22,890 $ 31,633 $ 1,316,106 $ 10,522 $ 307,277 Securities Available for Sale U.S. Government agencies $ 529 $ 73,353 $ 1,236 $ 23,763 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 17,381 1,274,934 8,604 221,435 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 10,911 432,300 — — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 13,120 846,581 5,310 98,106 State and municipal obligations 1,867 123,987 352 8,579 Small Business Administration loan-backed securities 2,720 179,168 1,759 110,309 Corporate securities 9 4,991 — — $ 46,537 $ 2,935,314 $ 17,261 $ 462,192 December 31, 2020: Securities Held to Maturity Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises $ 1,032 $ 213,146 $ — $ — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 91 27,445 — — $ 1,123 $ 240,591 $ — $ — Securities Available for Sale U.S. Government agencies $ 642 $ 24,358 $ — $ — Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,031 260,411 — — Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 825 140,333 — — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 46 13,594 4 871 State and municipal obligations 27 8,620 — — Small Business Administration loan-backed securities 573 94,981 1,017 104,254 $ 3,144 $ 542,297 $ 1,021 $ 105,125 Management evaluates securities for impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby Management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component would be recognized through the provision for credit losses. Consideration is given to (1) the financial condition and near-term prospects of the issuer including looking at default and delinquency rates, (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) our intent and ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or for a debt security whether it is more-likely-than-not that we will be required to sell the debt security prior to recovering its fair value, (5) the anticipated outlook for changes in the general level of interest rates, (6) credit ratings, (7) third-party guarantees, and (8) collateral values. 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 performed an analysis that determined that the following securities have a zero expected credit loss: U.S. Treasury Securities, Agency-Backed Securities including securities issued by Ginnie Mae, Fannie Mae, FHLB, FFCB and SBA. All of the U.S. Treasury and Agency-Backed Securities have the full faith and credit backing of the United States Government or one of its agencies. Municipal securities and all other securities that do not have a zero expected credit loss are evaluated quarterly to determine whether there is a credit loss associated with a decline in fair value. All debt securities in an unrealized loss position as of December 31, 2021 continue to perform as scheduled and we do not believe that there is a credit loss or that a provision for credit losses is necessary. Also, as part of our evaluation of our intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, we consider our investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. We do not currently intend to sell the securities within the portfolio and it is not more-likely-than-not that we will be required to sell the debt securities. See Note 1—Summary of Significant Account Policies for further discussion. Management continues to monitor all of our securities with a high degree of scrutiny. There can be no assurance that we will not conclude in future periods that conditions existing at that time indicate some or all of its securities may be sold or would require a charge to earnings as a provision for credit losses in such periods. At December 31, 2021 and 2020, investment securities with a carrying value of $2.1 billion were pledged to secure public funds deposits and for other purposes required and permitted by law. At December 31, 2021 and 2020, the carrying amount of the securities pledged to collateralize repurchase agreements was $471.3 million and $515.9 million, respectively. Trading Securities (Dollars in thousands) 2021 2020 U.S. Government agencies $ 5,154 $ — Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises 6,853 — Other residential mortgage issued or guaranteed by U.S. government agencies or sponsored enterprises 12,315 — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 29,667 — State and municipal obligations 20,798 10,674 Other debt securities 2,902 — $ 77,689 $ 10,674 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2021 | |
Loans | |
Loans | Note 4—Loans The following is a summary of total loans: December 31, December 31, (Dollars in thousands) 2021 2020 Loans: Construction and land development (1) $ 2,029,216 $ 1,890,846 Commercial non-owner occupied (3) 6,735,699 6,152,246 Commercial owner occupied real estate 4,970,116 4,832,697 Consumer owner occupied (2, 3) 3,638,364 3,682,667 Home equity loans 1,168,594 1,292,141 Commercial and industrial 3,761,133 5,046,310 Other income producing property (3) 696,804 854,900 Consumer 904,657 894,334 Other loans 23,583 17,993 Total loans 23,928,166 24,664,134 Less allowance for credit losses (301,807) (457,309) Loans, net $ 23,626,359 $ 24,206,825 (1) Construction and land development includes loans for both commercial construction and development, as well as loans for 1-4 family construction and lot loans. (2) Consumer owner occupied real estate includes loans on both 1-4 family owner occupied property, as well as loans collateralized by 1-4 family owner occupied properties with a business intent. (3) As a result of the conversion of legacy CenterState’s core system to the Company’s core system completed during the second quarter of 2021, several loans were reclassified to conform with the Company’s current loan segmentation, most notably residential investment loans were reclassified from Consumer Owner Occupied to Other Income Producing Property, and some multi-family loans were reclassified from Other Income Producing Property to Commercial Non-Owner Occupied. Prior period loan balances presented above were revised to conform with the current loan segmentation. In accordance with the adoption of ASU 2016-13, the above table reflects the loan portfolio at the amortized cost basis for the years ended December 31, 2021 and 2020, to include net deferred costs of $15.9 million compared to net deferred fees of $35.6 million, respectively, and unamortized discount total related to loans acquired of $68.0 million and $97.7 million, respectively. Accrued interest receivable (AIR) of $70.6 million and $93.9 million are accounted for separately and reported in other assets for the periods December 31, 2021 and 2020. As part of the ongoing monitoring of the credit quality of our 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 commercial loan. Classified loans are assessed at a minimum every six months. 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. Construction and land development loans in the following table are on commercial and speculative real estate. Consumer owner occupied loans are collateralized by 1-4 family owner occupied properties with a business intent. As noted previously, as a result of the conversion of legacy CenterState’s core system to the Company’s core system completed during the second quarter of 2021, several loans were reclassified to conform with the Company’s current loan segmentation, most notably residential investment loans were reclassified from Consumer Owner Occupied to Other Income Producing Property, and some multi-family loans were reclassified from Other Income Producing Property to Commercial Non-Owner Occupied. Prior period disclosures presented in the following tables for the commercial and consumer loan segments were revised to conform with the current loan segmentation. The following table presents the credit risk profile by risk grade of commercial loans by origination year: Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Total Construction and land development Risk rating: Pass $ 570,166 $ 360,488 $ 206,586 $ 38,866 $ 24,728 $ 49,321 $ 76,680 $ 1,326,835 Special mention 2,347 3,067 186 — 1,557 1,715 487 9,359 Substandard 960 210 2,304 326 543 2,209 — 6,552 Doubtful 1 — — — — 8 — 9 Total Construction and land development $ 573,474 $ 363,765 $ 209,076 $ 39,192 $ 26,828 $ 53,253 $ 77,167 $ 1,342,755 Commercial non-owner occupied Risk rating: Pass $ 1,812,512 $ 798,171 $ 1,061,021 $ 676,803 $ 494,618 $ 1,371,729 $ 102,763 $ 6,317,617 Special mention 16,683 12,985 14,138 36,875 25,729 110,109 — 216,519 Substandard 23,035 160 64,408 23,346 31,952 56,477 2,139 201,517 Doubtful — — — — — 46 — 46 Total Commercial non-owner occupied $ 1,852,230 $ 811,316 $ 1,139,567 $ 737,024 $ 552,299 $ 1,538,361 $ 104,902 $ 6,735,699 Commercial Owner Occupied Risk rating: Pass $ 1,182,722 $ 780,339 $ 801,162 $ 549,642 $ 428,163 $ 980,701 $ 69,739 $ 4,792,468 Special mention 9,152 4,257 7,331 10,860 22,792 49,083 115 103,590 Substandard 7,375 2,907 8,587 2,053 18,600 34,431 80 74,033 Doubtful — 1 — — — 24 — 25 Total commercial owner occupied $ 1,199,249 $ 787,504 $ 817,080 $ 562,555 $ 469,555 $ 1,064,239 $ 69,934 $ 4,970,116 Commercial and industrial Risk rating: Pass $ 1,198,849 $ 618,676 $ 360,551 $ 267,772 $ 178,538 $ 219,339 $ 860,134 $ 3,703,859 Special mention 2,759 1,519 2,434 1,268 3,224 3,871 3,281 18,356 Substandard 738 5,965 8,212 2,653 3,438 5,183 12,701 38,890 Doubtful — — 5 3 2 16 2 28 Total commercial and industrial $ 1,202,346 $ 626,160 $ 371,202 $ 271,696 $ 185,202 $ 228,409 $ 876,118 $ 3,761,133 Other income producing property Risk rating: Pass $ 105,533 $ 73,583 $ 67,173 $ 76,971 $ 56,343 $ 142,183 $ 56,190 $ 577,976 Special mention 1,580 1,851 1,063 232 1,381 13,526 424 20,057 Substandard 1,304 482 298 166 787 12,531 46 15,614 Doubtful — — — — — 6 — 6 Total other income producing property $ 108,417 $ 75,916 $ 68,534 $ 77,369 $ 58,511 $ 168,246 $ 56,660 $ 613,653 Consumer owner occupied Risk rating: Pass $ 3,513 $ 2,874 $ 1,099 $ 85 $ 139 $ 820 $ 16,977 $ 25,507 Special mention 1,219 180 2,430 81 — 3 — 3,913 Substandard — 16 238 — — 223 — 477 Doubtful — — — 1 — 145 — 146 Total Consumer owner occupied $ 4,732 $ 3,070 $ 3,767 $ 167 $ 139 $ 1,191 $ 16,977 $ 30,043 Other loans Risk rating: Pass $ 23,583 $ — $ — $ — $ — $ — $ — $ 23,583 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total other loans $ 23,583 $ — $ — $ — $ — $ — $ — $ 23,583 Total Commercial Loans Risk rating: Pass $ 4,896,878 $ 2,634,131 $ 2,497,592 $ 1,610,139 $ 1,182,529 $ 2,764,093 $ 1,182,483 $ 16,767,845 Special mention 33,740 23,859 27,582 49,316 54,683 178,307 4,307 371,794 Substandard 33,412 9,740 84,047 28,544 55,320 111,054 14,966 337,083 Doubtful 1 1 5 4 2 245 2 260 Total Commercial Loans $ 4,964,031 $ 2,667,731 $ 2,609,226 $ 1,688,003 $ 1,292,534 $ 3,053,699 $ 1,201,758 $ 17,476,982 Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Total Construction and land development Risk rating: Pass $ 457,425 $ 410,075 $ 127,187 $ 79,345 $ 41,018 $ 52,889 $ 15,502 $ 1,183,441 Special mention 20,912 5,668 707 1,757 1,815 7,293 — 38,152 Substandard 389 2,800 763 2,087 201 3,669 — 9,909 Doubtful — — — — — 8 — 8 Total Construction and land development $ 478,726 $ 418,543 $ 128,657 $ 83,189 $ 43,034 $ 63,859 $ 15,502 $ 1,231,510 Commercial non-owner occupied Risk rating: Pass $ 838,646 $ 1,108,164 $ 878,172 $ 677,803 $ 723,745 $ 1,253,710 $ 58,021 $ 5,538,261 Special mention 42,492 76,890 111,466 44,790 38,983 131,015 — 445,636 Substandard 1,351 49,662 7,497 27,224 39,424 43,187 — 168,345 Doubtful — — — — — 4 — 4 Total Commercial non-owner occupied $ 882,489 $ 1,234,716 $ 997,135 $ 749,817 $ 802,152 $ 1,427,916 $ 58,021 $ 6,152,246 Commercial Owner Occupied Risk rating: Pass $ 804,895 $ 957,412 $ 719,111 $ 601,471 $ 455,065 $ 1,041,668 $ 42,239 $ 4,621,861 Special mention 6,993 15,984 13,021 14,457 13,597 48,775 21 112,848 Substandard 5,729 4,185 4,690 20,122 15,093 48,127 36 97,982 Doubtful 1 — — — — 5 — 6 Total commercial owner occupied $ 817,618 $ 977,581 $ 736,822 $ 636,050 $ 483,755 $ 1,138,575 $ 42,296 $ 4,832,697 Commercial and industrial Risk rating: Pass $ 2,723,320 $ 595,310 $ 450,238 $ 308,442 $ 223,532 $ 419,555 $ 247,169 $ 4,967,566 Special mention 1,566 3,273 3,031 7,165 2,496 25,727 9,368 52,626 Substandard 347 1,070 6,202 7,718 2,808 5,723 2,240 26,108 Doubtful — 2 1 3 3 1 — 10 Total commercial and industrial $ 2,725,233 $ 599,655 $ 459,472 $ 323,328 $ 228,839 $ 451,006 $ 258,777 $ 5,046,310 Other income producing property Risk rating: Pass $ 100,126 $ 117,860 $ 116,570 $ 95,506 $ 57,654 $ 171,572 $ 48,116 $ 707,404 Special mention 3,531 2,645 1,901 1,655 1,738 17,188 292 28,950 Substandard 1,071 1,281 997 539 488 19,382 65 23,823 Doubtful — — — — — 6 — 6 Total other income producing property $ 104,728 $ 121,786 $ 119,468 $ 97,700 $ 59,880 $ 208,148 $ 48,473 $ 760,183 Consumer owner occupied Risk rating: Pass $ 7,590 $ 3,527 $ 356 $ 339 $ 1,076 $ 1,290 $ 15,502 $ 29,680 Special mention 130 3,581 249 62 — 124 338 4,484 Substandard 113 387 142 — 5 326 — 973 Doubtful — — — — — — — — Total Consumer owner occupied $ 7,833 $ 7,495 $ 747 $ 401 $ 1,081 $ 1,740 $ 15,840 $ 35,137 Other loans Risk rating: Pass $ 17,993 $ — $ — $ — $ — $ — $ — $ 17,993 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total other loans $ 17,993 $ — $ — $ — $ — $ — $ — $ 17,993 Total Commercial Loans Risk rating: Pass $ 4,949,995 $ 3,192,348 $ 2,291,634 $ 1,762,906 $ 1,502,090 $ 2,940,684 $ 426,549 $ 17,066,206 Special mention 75,624 108,041 130,375 69,886 58,629 230,122 10,019 682,696 Substandard 9,000 59,385 20,291 57,690 58,019 120,414 2,341 327,140 Doubtful 1 2 1 3 3 24 — 34 Total Commercial Loans $ 5,034,620 $ 3,359,776 $ 2,442,301 $ 1,890,485 $ 1,618,741 $ 3,291,244 $ 438,909 $ 18,076,076 For the consumer segment, delinquency of a loan is determined by past due status. Consumer loans are automatically placed on nonaccrual status once the loan is 90 days past due. Construction and land development loans are on 1-4 properties and lots. The following table presents the credit risk profile by past due status of consumer loans by origination year: Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Total Consumer owner occupied Days past due: Current $ 1,192,449 $ 710,828 $ 405,138 $ 246,487 $ 228,876 $ 810,605 $ 4 $ 3,594,387 30 days past due 354 666 234 472 1,068 2,230 — 5,024 60 days past due — 330 218 254 111 928 — 1,841 90 days past due 235 574 691 549 274 4,746 — 7,069 Total Consumer owner occupied $ 1,193,038 $ 712,398 $ 406,281 $ 247,762 $ 230,329 $ 818,509 $ 4 $ 3,608,321 Home equity loans Days past due: Current $ 7,128 $ 5,648 $ 4,745 $ 2,180 $ 993 $ 24,716 $ 1,116,621 $ 1,162,031 30 days past due 6 49 68 71 24 491 2,200 2,909 60 days past due — — — — — 603 339 942 90 days past due 75 65 172 180 22 1,548 650 2,712 Total Home equity loans $ 7,209 $ 5,762 $ 4,985 $ 2,431 $ 1,039 $ 27,358 $ 1,119,810 $ 1,168,594 Consumer Days past due: Current $ 314,475 $ 169,443 $ 127,757 $ 69,892 $ 36,304 $ 151,948 $ 29,168 $ 898,987 30 days past due 229 364 208 191 132 1,570 137 2,831 60 days past due 145 82 90 124 90 658 17 1,206 90 days past due 74 121 181 109 29 1,119 — 1,633 Total consumer $ 314,923 $ 170,010 $ 128,236 $ 70,316 $ 36,555 $ 155,295 $ 29,322 $ 904,657 Construction and land development Days past due: Current $ 411,728 $ 204,368 $ 33,965 $ 13,429 $ 8,484 $ 14,185 $ 162 $ 686,321 30 days past due — 24 — — — — — 24 60 days past due — — — — — 12 — 12 90 days past due — — — — — 104 — 104 Total Construction and land development $ 411,728 $ 204,392 $ 33,965 $ 13,429 $ 8,484 $ 14,301 $ 162 $ 686,461 Other income producing property Days past due: Current $ 22,131 $ 5,620 $ 4,906 $ 4,977 $ 6,303 $ 37,575 $ 1,379 $ 82,891 30 days past due — — — — — 90 — 90 60 days past due — — — — — 156 — 156 90 days past due — — — — — 14 — 14 Total other income producing property $ 22,131 $ 5,620 $ 4,906 $ 4,977 $ 6,303 $ 37,835 $ 1,379 $ 83,151 Total Consumer Loans Days past due: Current $ 1,947,911 $ 1,095,907 $ 576,511 $ 336,965 $ 280,960 $ 1,039,029 $ 1,147,334 $ 6,424,617 30 days past due 589 1,103 510 734 1,224 4,381 2,337 10,878 60 days past due 145 412 308 378 201 2,357 356 4,157 90 days past due 384 760 1,044 838 325 7,531 650 11,532 Total Consumer Loans $ 1,949,029 $ 1,098,182 $ 578,373 $ 338,915 $ 282,710 $ 1,053,298 $ 1,150,677 $ 6,451,184 Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Total Total Loans $ 6,913,060 $ 3,765,913 $ 3,187,599 $ 2,026,918 $ 1,575,244 $ 4,106,997 $ 2,352,435 $ 23,928,166 Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Total Consumer owner occupied Days past due: Current $ 759,525 $ 615,142 $ 471,224 $ 446,996 $ 351,859 $ 960,330 $ — $ 3,605,076 30 days past due 4,933 7,744 2,776 2,070 3,203 9,294 — 30,020 60 days past due — 350 1,222 486 103 2,710 — 4,871 90 days past due — 176 264 994 875 5,254 — 7,563 Total Consumer owner occupied $ 764,458 $ 623,412 $ 475,486 $ 450,546 $ 356,040 $ 977,588 $ — $ 3,647,530 Home equity loans Days past due: Current $ 7,654 $ 6,694 $ 7,670 $ 658 $ 398 $ 30,039 $ 1,231,510 $ 1,284,623 30 days past due 134 52 — 79 — 272 2,324 2,861 60 days past due — — — — — 116 418 534 90 days past due 155 93 — 157 330 1,886 1,502 4,123 Total Home equity loans $ 7,943 $ 6,839 $ 7,670 $ 894 $ 728 $ 32,313 $ 1,235,754 $ 1,292,141 Consumer Days past due: Current $ 291,305 $ 201,330 $ 115,203 $ 62,485 $ 38,272 $ 147,101 $ 32,874 $ 888,570 30 days past due 105 473 454 224 29 1,043 23 2,351 60 days past due 68 143 93 61 37 376 47 825 90 days past due 73 195 272 185 100 1,663 100 2,588 Total consumer $ 291,551 $ 202,141 $ 116,022 $ 62,955 $ 38,438 $ 150,183 $ 33,044 $ 894,334 Construction and land development Days past due: Current $ 370,457 $ 163,728 $ 63,521 $ 18,530 $ 4,497 $ 25,399 $ — $ 646,132 30 days past due 6,172 3,660 161 — 2,255 184 — 12,432 60 days past due 282 — 438 — — — — 720 90 days past due — — — — — 52 — 52 Total Construction and land development $ 376,911 $ 167,388 $ 64,120 $ 18,530 $ 6,752 $ 25,635 $ — $ 659,336 Other income producing property Days past due: Current $ 7,941 $ 7,073 $ 8,828 $ 8,946 $ 6,872 $ 51,554 $ 2,709 $ 93,923 30 days past due — — — — — 240 — 240 60 days past due — — — 135 — 196 — 331 90 days past due — — — — — 223 — 223 Total other income producing property $ 7,941 $ 7,073 $ 8,828 $ 9,081 $ 6,872 $ 52,213 $ 2,709 $ 94,717 Total Consumer Loans Days past due: Current $ 1,436,882 $ 993,967 $ 666,446 $ 537,615 $ 401,898 $ 1,214,423 $ 1,267,093 $ 6,518,324 30 days past due 11,344 11,929 3,391 2,373 5,487 11,033 2,347 47,904 60 days past due 350 493 1,753 682 140 3,398 465 7,281 90 days past due 228 464 536 1,336 1,305 9,078 1,602 14,549 Total Consumer Loans $ 1,448,804 $ 1,006,853 $ 672,126 $ 542,006 $ 408,830 $ 1,237,932 $ 1,271,507 $ 6,588,058 Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Total Total Loans $ 6,483,424 $ 4,366,629 $ 3,114,427 $ 2,432,491 $ 2,027,571 $ 4,529,176 $ 1,710,416 $ 24,664,134 The following table presents an aging analysis of past due accruing loans, segregated by class. As noted previously, prior period loan balances presented below reflect the loan reclassifications resulting from the system’s conversion completed during the second quarter of 2021. 30 - 59 Days 60 - 89 Days 90+ Days Total Non- Total (Dollars in thousands) Past Due Past Due Past Due Past Due Current Accruing Loans December 31, 2021 Construction and land development $ 1,176 $ 59 $ 43 $ 1,278 $ 2,026,371 $ 1,567 $ 2,029,216 Commercial non-owner occupied 3,591 2,110 96 5,797 6,709,993 19,909 6,735,699 Commercial owner occupied 2,756 1,732 626 5,114 4,950,470 14,532 4,970,116 Consumer owner occupied 4,046 533 — 4,579 3,615,602 18,183 3,638,364 Home equity loans 2,565 913 — 3,478 1,158,861 6,255 1,168,594 Commercial and industrial 50,451 26,639 3,991 81,081 3,672,611 7,441 3,761,133 Other income producing property 879 424 106 1,409 691,320 4,075 696,804 Consumer 2,672 840 1 3,513 897,688 3,456 904,657 Other loans — — — — 23,583 — 23,583 $ 68,136 $ 33,250 $ 4,863 $ 106,249 $ 23,746,499 $ 75,418 $ 23,928,166 December 31, 2020 Construction and land development $ 520 $ 1,142 $ — $ 1,662 $ 1,886,763 $ 2,421 $ 1,890,846 Commercial non-owner occupied 188 372 471 1,031 6,145,745 5,470 6,152,246 Commercial owner occupied 2,900 840 — 3,740 4,802,898 26,059 4,832,697 Consumer owner occupied 1,165 3,294 34 4,493 3,649,697 28,477 3,682,667 Home equity loans 1,805 481 — 2,286 1,279,929 9,926 1,292,141 Commercial and industrial 10,979 22,089 10,864 43,932 4,993,160 9,218 5,046,310 Other income producing property 897 338 278 1,513 845,844 7,543 854,900 Consumer 1,718 818 4 2,540 885,720 6,074 894,334 Other loans 13 6 — 19 17,974 — 17,993 $ 20,185 $ 29,380 $ 11,651 $ 61,216 $ 24,507,730 $ 95,188 $ 24,664,134 The following is a summary of information pertaining to nonaccrual loans by class, including restructured loans. Prior period loan balances presented below reflect the loan reclassifications resulting from the system’s conversion completed during the second quarter of 2021. December 31, Greater than Non-accrual December 31, (Dollars in thousands) 2021 90 Days Accruing (1) with no allowance (1) 2020 Construction and land development $ 1,567 $ 43 $ 81 $ 2,421 Commercial non-owner occupied 19,909 96 8,771 5,470 Commercial owner occupied real estate 14,532 626 6,609 26,059 Consumer owner occupied 18,183 — — 28,477 Home equity loans 6,255 — 49 9,926 Commercial and industrial 7,441 3,991 177 9,218 Other income producing property 4,075 106 220 7,543 Consumer 3,456 1 — 6,074 Total loans on nonaccrual status $ 75,418 $ 4,863 $ 15,907 $ 95,188 (1) Greater than 90 days accruing and non-accrual with no allowance loans at December 31, 2021. There is no interest income recognized during the period on nonaccrual loans. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Loans on nonaccrual status in which there is no allowance assigned are individually evaluated loans that do not carry a specific reserve. See Note 1 — Summary of Significant Accounting Policies for further detailed on individually evaluated loans. The following is a summary of collateral dependent loans, by type of collateral, and the extent to which they are collateralized during the period: December 31, Collateral December 31, Collateral (Dollars in thousands) 2021 Coverage % 2020 Coverage % Commercial owner occupied real estate Church $ 1,953 $ 2,308 118% $ — — Office — — 1,076 $ 1,485 138% Retail — — 4,849 5,490 113% Other 4,656 12,200 262% 1,010 1,075 106% Commercial non-owner occupied real estate Hotel 1,822 4,100 225% — — Other 6,949 9,630 139% — — Total collateral dependent loans $ 15,380 $ 28,238 $ 6,935 $ 8,050 The Bank designates individually evaluated loans (excluding TDRs) on non-accrual with a net book balance exceeding the designated threshold as collateral dependent loans. Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. These loans do not share common risk characteristics and are not included within the collectively evaluated loans for determining ACL. Under ASC 326-20-35-6, the Bank has adopted the collateral maintenance practical expedient to measure the ACL based on the fair value of collateral. The ACL is calculated on an individual loan basis based on the shortfall between the fair value of the loan's collateral, which is adjusted for selling costs, and amortized cost. If the fair value of the collateral exceeds the amortized cost, no allowance is required. During the second quarter of 2020, the Bank increased the threshold limit for loans individually evaluated from $500,000 to $1.0 million. The significant changes above in collateral percentage are due to appraisal value updates or changes in the number of loans within the asset class and collateral type. Overall collateral dependent loans increased by $8.4 million from December 31, 2020 compared to the balance at December 31, 2021 In the course of resolving delinquent loans, the Bank may choose to restructure the contractual terms of certain loans. Any loans that are modified are reviewed by the Bank to determine if a TDR, sometimes referred to herein as a restructured loan, has occurred. The Bank designates loan modifications as TDRs when it grants a concession to a borrower that it would not otherwise consider due to the borrower experiencing financial difficulty (FASB ASC Topic 310-40). The concessions granted on TDRs generally include terms to reduce the interest rate, extend the term of the debt obligation, or modify the payment structure on the debt obligation. See Note 1 — Loans on nonaccrual status at the date of modification are initially classified as nonaccrual TDRs. Loans on accruing status at the date of concession are initially classified as accruing TDRs if the note is reasonably assured of repayment and performance is expected in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the concession 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 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 ). The Company elected the accounting policy in the CARES Act to not apply TDR accounting to loans modified for borrowers impacted by the COVID-19 pandemic if the concession met the criteria stipulated in the CARES Act. Details in regards to the Company’s implemented loan modification programs in response to the COVID-19 pandemic under the CARES Act is disclosed under the Note 1 — The following table presents loans designated as TDRs segregated by class and type of concession that were restructured during the years ended December 31, 2021 and 2020. Year End |
Allowance for Credit Losses (AC
Allowance for Credit Losses (ACL) | 12 Months Ended |
Dec. 31, 2021 | |
Allowance for Credit Losses (ACL) | |
Allowance for Credit Losses (ACL) | Note 5—Allowance for Credit Losses (ACL) See Note 1 — The following table presents a disaggregated analysis of activity in the allowance for credit losses as follows: Residential Residential Residential Other CRE Owner Non Owner (Dollars in thousands) Mortgage Sr. Mortgage Jr. HELOC Construction C&D Consumer Multifamily Municipal Occupied Occupied CRE C & I Total Year Ended December 31,2021 Allowance for credit losses: Balance at end of period December 31, 2020 $ 63,561 $ 1,238 $ 16,698 $ 4,914 $ 67,197 $ 26,562 $ 7,887 $ 1,510 $ 97,104 $ 124,421 $ 46,217 $ 457,309 Charge-offs (204) — (1,002) (29) (87) (8,809) — — (2,052) (863) (3,853) (16,899) Recoveries 1,547 146 2,256 60 1,861 2,075 3 — 970 1,070 3,812 13,800 Net recoveries (charge offs) 1,343 146 1,254 31 1,774 (6,734) 3 — (1,082) 207 (41) (3,099) Provision (benefit) (1) (17,868) (773) (4,627) 52 (31,378) 3,321 (2,969) (945) (34,228) (44,979) (18,009) (152,403) Balance at end of period December 31,2021 $ 47,036 $ 611 $ 13,325 $ 4,997 $ 37,593 $ 23,149 $ 4,921 $ 565 $ 61,794 $ 79,649 $ 28,167 $ 301,807 Allowance for credit losses: Quantitative allowance Collectively evaluated $ 45,575 $ 611 $ 12,954 $ 4,989 $ 37,159 $ 21,887 $ 4,921 $ 565 $ 60,353 $ 77,494 $ 25,702 $ 292,210 Individually evaluated 150 — 91 — 434 — — — 590 196 1,003 2,464 Total quantitative allowance 45,725 611 13,045 4,989 37,593 21,887 4,921 565 60,943 77,690 26,705 294,674 Qualitative allowance 1,311 — 280 8 — 1,262 — — 851 1,959 1,462 7,133 Balance at end of period December 31,2021 $ 47,036 $ 611 $ 13,325 $ 4,997 $ 37,593 $ 23,149 $ 4,921 $ 565 $ 61,794 $ 79,649 $ 28,167 $ 301,807 Year Ended December 31,2020 Allowance for credit losses: Balance at beginning of period January 1, 2020 $ 6,128 $ 15 $ 4,327 $ 815 $ 6,211 $ 4,350 $ 1,557 $ 956 $ 10,879 $ 15,219 $ 6,470 $ 56,927 Impact of Adoption 5,455 11 3,849 779 5,588 3,490 1,391 914 9,505 13,898 6,150 51,030 Initial PCD Allowance 406 3 289 — 351 669 97 898 656 39 3,408 Adjusted CECL balance, January 1, 2020 $ 11,989 $ 29 $ 8,465 $ 1,594 $ 12,150 $ 8,509 $ 3,045 $ 1,870 $ 21,282 $ 29,773 $ 12,659 $ 111,365 Impact of merger on provision for non-PCD loans 16,712 226 4,227 4,893 7,673 3,836 1,212 919 25,393 35,067 9,284 109,442 Initial PCD Allowance 29,935 804 5,119 1,302 6,035 6,120 902 1,003 34,077 45,787 18,320 149,404 Charge-offs (528) (24) (1,053) (32) (347) (6,158) — — (1,205) (601) (4,654) (14,602) Recoveries 1,143 455 1,251 111 1,407 1,922 71 — 1,089 518 3,810 11,777 Net charge offs 615 431 198 79 1,060 (4,236) 71 — (116) (83) (844) (2,825) Provision (benefit) (1) 4,310 (252) (1,311) (2,954) 40,279 12,333 2,657 (2,282) 16,468 13,877 6,798 89,923 Balance at end of period December 31,2020 $ 63,561 $ 1,238 $ 16,698 $ 4,914 $ 67,197 $ 26,562 $ 7,887 $ 1,510 $ 97,104 $ 124,421 $ 46,217 $ 457,309 Allowance for credit losses: Quantitative allowance Collectively evaluated $ 54,656 $ 1,238 $ 14,625 $ 4,733 $ 67,188 $ 18,435 $ 7,887 $ 685 $ 91,106 $ 116,571 $ 38,805 $ 415,929 Individually evaluated 82 — 77 — 9 120 — — 948 6 7 1,249 Total quantitative allowance 54,738 1,238 14,702 4,733 67,197 18,555 7,887 685 92,054 116,577 38,812 417,178 Qualitative allowance 8,823 — 1,996 181 — 8,007 — 825 5,050 7,844 7,405 40,131 Balance at end of period December 31,2020 $ 63,561 $ 1,238 $ 16,698 $ 4,914 $ 67,197 $ 26,562 $ 7,887 $ 1,510 $ 97,104 $ 124,421 $ 46,217 $ 457,309 (1) A negative provision (recovery) for credit losses of $12.9 million was recorded during 2021 compared to an additional provision for credit losses of $43.4 million, of which $9.6 million was from the initial impact from the merger with CSFL, recorded during 2020 for the allowance for credit losses for unfunded commitments that is not considered in the above table. An aggregated analysis of the changes in allowance for loan losses, for comparative period, prior to the adoption of ASU 2016-13 is as follows: Non-acquired Acquired Non-Credit 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 The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for non-acquired loans, for comparative period, prior to the adoption of ASU 2016-13: 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 The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired non-credit impaired loans, for comparative period, prior to the adoption of ASU 2016-13: 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 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 at end of period $ — $ — $ — $ — $ — $ — $ — $ — $ — 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 The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired credit impaired loans, for comparative period, prior to the adoption of ASU 2016-13: 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 at beginning of period $ 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 at end of period $ 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 * 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. |
Other Real Estate Owned and Ban
Other Real Estate Owned and Bank Premises Held for Sale | 12 Months Ended |
Dec. 31, 2021 | |
Other Real Estate Owned and Bank Premises Held for Sale | |
Other Real Estate Owned and Bank Premises Held for Sale | Note 6— Other Real Estate Owned and Bank Premises Held for Sale The following is a summary of the changes in the carrying value of OREO and Bank Premises Held for Sale: (Dollars in thousands) OREO Bank Premises Held For Sale Total Balance, December 31, 2019 $ 6,539 $ 5,425 $ 11,964 Acquired in the CSFL acquisition 9,931 18,380 28,311 Additions, net 5,553 21,787 27,340 Writedowns (729) (356) (1,085) Sold (9,380) (9,230) (18,610) Balance, December 31, 2020 $ 11,914 $ 36,006 $ 47,920 Measurement period adjustment pertaining to CSFL acquisition — (1,226) (1,226) Additions, net 3,642 4,373 8,015 Writedowns (1,949) (118) (2,067) Sold (10,871) (29,457) (40,328) Balance, December 31, 2021 $ 2,736 $ 9,578 $ 12,314 At December 31, 2021, there were a total of 12 properties included in OREO which compares to 42 properties included in OREO, at December 31, 2020. At December 31, 2021, there were a total of 9 properties included in bank premises held for sale which compares to 33 properties included in premises held for sale, at December 31, 2020. During the second quarter of 2020, a reclassification was made so that bank property held for sale is now separately disclosed on the balance sheet. At December 31, 2021, the Company had $558,000 in residential real estate included in OREO and $3.6 million in residential real estate consumer mortgage loans in the process of foreclosure. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment | |
Premises and Equipment | Note 7—Premises and Equipment Premises and equipment consisted of the following: December 31, (Dollars in thousands) Useful Life 2021 2020 Land $ 145,276 $ 152,263 Buildings and leasehold improvements 15 - 40 years 404,655 406,078 Equipment and furnishings 3 - 10 years 169,271 161,009 Lease right of use assets 110,311 113,422 Construction in process 14,518 3,618 Total 844,031 836,390 Less accumulated depreciation (285,532) (257,151) $ 558,499 $ 579,239 Depreciation expense charged to operations was $29.2 million, $25.3 million, and $18.2 million for the years ended December 31, 2021, 2020, and 2019, respectively. At December 31, 2021 and 2020, computer software with an original cost of $43.5 million and $37.4 million, respectively, were being amortized using the straight-line method over thirty-six months . Amortization expense totaled $4.8 million, $2.4 million, and $1.2 31, 2021, 2020, and 2019, respectively. There were Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. See Note 21 — |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 8—Goodwill and Other Intangible Assets The Company evaluated the carrying value of goodwill as of October 31, 2021, its annual test date, and concluded that no impairment charge was necessary. The Company will continue to monitor the impact of COVID-19 on the Company’ business, operating results, cash flows and/or financial condition. The following is a summary of changes in the carrying amounts of goodwill: Year Ended December 31, (Dollars in thousands) 2021 2020 Balance at beginning of period $ 1,563,942 $ 1,002,900 Additions: Goodwill from CenterState acquisition — 561,042 Goodwill from Duncan Williams acquisition 15,816 — Goodwill subsequent fair value adjustment from CenterState acquisition 1,327 — Balance at end of period $ 1,581,085 $ 1,563,942 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) 2021 2020 Gross carrying amount $ 257,874 $ 258,554 Accumulated amortization (129,807) (95,962) $ 128,067 $ 162,592 Amortization expense totaled $35.2 million and $27.0 million and $13.1 million for the years ended December 31, 2021, 2020, and 2019, 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 and 15 years . Estimated amortization expense for other intangibles for each of the next five years is as follows: (Dollars in thousands) Year ended December 31: 2022 $ 30,056 2023 24,634 2024 19,790 2025 16,480 2026 13,264 Thereafter 23,843 $ 128,067 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Deposits | Note 9—Deposits The Company’s total deposits are comprised of the following: December 31, (Dollars in thousands) 2021 2020 Non-interest bearing checking $ 11,498,840 $ 9,711,338 Interest-bearing checking 9,018,987 6,955,575 Savings 3,350,547 2,694,011 Money market 8,376,380 7,584,353 Time deposits 2,810,075 3,748,605 Total deposits $ 35,054,829 $ 30,693,882 At December 31, 2021 and 2020, the Company had $603.2 million and $814.2 million in certificates of deposits of $250,000 and greater, respectively. At December 31, 2021 and 2020, the Company held $325.0 million and $600.0 million of traditional, out-of-market brokered deposits, respectively. At December 31, 2021, the scheduled maturities of time deposits (includes $6.1 million of other time deposits) of all denominations are as follow: (Dollars in thousands) Year ended December 31: 2022 $ 2,078,328 2023 410,875 2024 121,266 2025 138,171 2026 58,139 Thereafter 3,296 $ 2,810,075 |
Federal Funds Purchased and Sec
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 12 Months Ended |
Dec. 31, 2021 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | Note 10—Federal Funds Purchased and Securities Sold Under Agreements to Repurchase Federal funds purchased and securities sold under agreements to repurchase generally mature within one per our policies. Certain of the borrowings have no defined maturity date. Information concerning federal funds purchased and securities sold under agreements to repurchase are below: December 31, 2021 2020 2019 (Dollars in thousands) Amount Rate Amount Rate Amount Rate At period-end: Federal funds purchased and securities sold under repurchase agreements $ 781,239 0.12 % $ 779,666 0.17 % $ 298,741 0.90 % Average for the year: Federal funds purchased and securities sold under repurchase agreements $ 877,969 0.14 % $ 553,110 0.35 % $ 282,172 0.93 % Maximum month-end balance: Federal funds purchased and securities sold under repurchase agreements $ 898,663 $ 779,666 $ 321,833 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, 2021 and December 31, 2020, the Company’s repurchase agreements totaled $400.0 million and $394.9 million, respectively. All of the Company’s repurchase agreements were overnight or continuous (until-further-notice) agreements at December 31, 2021 and December 31, 2020. These borrowings were collateralized with government, government-sponsored enterprise, or state and political subdivision-issued securities with a carrying value of 31, 2020, respectively. Declines in the value of the collateral would require the Company to increase the amounts of securities pledged. |
Other Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Other Borrowings. | |
Other Borrowings | Note 11—Other Borrowings The Company’s other borrowings were as follows: 2021 2020 Weighted Weighted Interest Average Interest Average Rate at Average Interest Rate at Average Interest (Dollars in thousands) Maturity 12/31/2021 Balance Balance Rate 12/31/2020 Balance Balance Rate Short-term borrowings: FHLB Advances Various — % $ — — % $ — FRB Borrowings Various — % — — % — US Bank Line of Credit Daily — % — — % — Total short-term borrowings — % $ — $ 1,986 2.22 % — % $ — $ 745,939 0.63 % Long-term borrowings SCBT Capital Trust I junior subordinated debt (1) 6/15/2035 1.99 % $ 12,372 2.01 % $ 12,372 SCBT Capital Trust II junior subordinated debt (1) 6/15/2035 1.99 % 8,248 2.01 % 8,248 SCBT Capital Trust III junior subordinated debt (1) 7/18/2035 1.79 % 20,619 1.81 % 20,619 SAVB Capital Trust I junior subordinated debt (1) 10/7/2033 2.97 % 6,186 3.09 % 6,186 SAVB Capital Trust II junior subordinated debt (1) 12/15/2034 2.40 % 4,124 2.42 % 4,124 TSB Statutory Trust I junior subordinated debt (1) 3/14/2037 1.92 % 3,093 1.94 % 3,093 Southeastern Bank Financial Statutory Trust I junior subordinated debt (1) 12/15/2035 1.60 % 10,310 1.62 % 10,310 Southeastern Bank Financial Statutory Trust II junior subordinated debt (1) 6/15/2036 1.60 % 10,310 1.62 % 10,310 CSBC Statutory Trust I junior subordinated debt (1) 12/15/2035 1.77 % 15,464 1.79 % 15,464 Community Capital Statutory Trust I junior subordinated debt (1) 6/15/2036 1.75 % 10,310 1.77 % 10,310 FCRV Statutory Trust I junior subordinated debt (1) 12/15/2036 1.90 % 5,155 1.92 % 5,155 Provident Community Bancshares Capital Trust I junior subordinated debt (1) 3/1/2037 1.87 % 4,124 1.97 % 4,124 Provident Community Bancshares Capital Trust II junior subordinated debt (1) 10/1/2036 1.91 % 8,248 1.97 % 8,248 CenterState Banks of Florida Statutory Trust I junior subordinated debt (1) 9/22/2033 — % — 3.30 % 10,310 Valrico Capital Statutory Trust junior subordinated debt (1) 9/8/2034 — % — 2.93 % 2,577 Federal Trust Statutory Trust I junior subordinated debt (1) 9/17/2033 — % — 3.18 % 5,155 Gulfstream Bancshares Capital Trust II junior subordinated debt (1) 3/6/2037 — % — 1.93 % 3,093 Homestead Statutory Trust I junior subordinated debt (1) 10/1/2036 — % — 1.88 % 10,495 BSA Financial Statutory Trust I junior subordinated debt (1) 12/15/2035 — % — 1.77 % 5,155 MRCB Statutory Trust II junior subordinated debt (1) 9/15/2036 — % — 1.82 % 3,093 Fair Market Value Discount Trust Preferred Debt Acquired (1,398) (14,116) Total Junior Subordinated Debt 1.89 % 117,165 130,048 1.97 % 2.05 % 144,325 131,817 2.51 % Residential Warranty Corp. subordinated note (5) 4/15/2021 — % — 5.00 % 7,000 Messiah College subordinated note (5) 4/15/2021 — % — 5.00 % 4,000 National Bank of Commerce subordinated debt (2) 6/1/2026 — % — 6.00 % 25,000 Landmark Bancshares subordinated debt (3) 6/30/2027 6.50 % 13,000 6.50 % 13,000 CenterState Bank Corporation subordinated debt (4) 6/1/2030 5.75 % 200,000 5.75 % 200,000 Long-term subordinated debt costs (3,099) (3,146) Total Subordinated Debt 5.80 % 209,901 222,765 5.81 % 5.78 % 245,854 139,584 5.69 % Other Long Term Debt Various — % — — — % — % — 92 0.50 % Total long-term borrowings 4.40 % $ 327,066 $ 352,813 4.36 % 4.40 % $ 390,179 $ 271,493 3.60 % Total borrowings 4.40 % $ 327,066 $ 354,799 4.35 % 4.40 % $ 390,179 $ 1,017,432 1.58 % (1) All of the junior subordinated debt above is adjustable rate based on three-month LIBOR plus a spread ranging from (2) The Notes bear interest at a fixed rate of per year, from, and including, May 19, 2016, to, but excluding, June 1, 2021. On June 1, 2021, the Notes convert to a floating rate equal to three-month LIBOR plus basis points. The Notes were redeemed by the Company on June 1, 2021. (3) The Notes bear interest at a fixed rate of per year, to, but excluding, June 30, 2022. On June 30, 2022, the Notes convert to a floating rate equal to three-month LIBOR plus basis points. The Notes may be redeemed by the Company after June 30, 2022. (4) The per year, to, but excluding, June 1, 2025. On June 1, 2025, the Notes convert to a floating rate equal to SOFR plus basis points. The Notes may be redeemed by the Company after June 1, 2025. The balance in the table above at December 31, 2021 is net of debt issuance costs of (5) These subordinated notes were not classified as Tier 2 Capital for regulatory capital purposes. Short-Term Borrowings The Company has from time-to- time entered into borrowing agreements with the FHLB and FRB. Borrowings under these agreements are collateralized by stock in the FHLB, qualifying first and second mortgage residential loans, investment securities, and commercial real estate loans under a blanket-floating lien. As of December 31, 2021 and 2020, there were no outstanding short-term borrowings. For the years ended December 31, 2021 and 2020, the average balance for short-term borrowings was $2.0 million and $745.9 million, respectively. The year-to-date weighted average cost for the years ended December 31, 2021 and 2020 was 2.22% and 0.63 %, respectively. Net eligible loans of the Company pledged via a blanket lien to the FHLB for advances and letters of credit at December 31, 2021, were approximately $3.7 billion and investment securities and cash pledged were approximately $227.6 million. This allows the Company a total borrowing capacity at the FHLB of approximately $2.8 billion. After accounting for letters of credit totaling 31, 2021. The Company also has a total borrowing capacity at the FRB of $981.1 million at December 31, 2021 secured by a blanket lien on $1.6 billion in net eligible loans of the Company. The Company had no outstanding borrowings with the FRB at December 31, 2021 and 2020. During the fourth quarter of 2020, we paid-off early our FHLB advances of $700.0 million and terminated the interest rate swaps related to these advances at a cost of $38.8 million reflected in Noninterest Expense in the Consolidated Statements of Income. 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, 2021. As of December 31, 2021, the sole assets of the trusts were an aggregate of $117.2 million, net of unamortized discount, of the Company’s junior subordinated debt securities with like maturities and like interest rates to the trust preferred securities. As of December 31, 2021, the Company recorded a $117.2 million liability for the junior subordinated debt securities, net of a $1.4 million discount recorded on Citizens South Banking Corporation Statutory Trust I, Community Capital Statutory Trust I, FCRV Statutory Trust I and 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 a four-year period. As of December 31, 2021, and 2020, there was $117.2 million (net of discount of $1.4 million) and $144.3 million (net of discount of $14.1 million), respectively, in junior subordinated debt. The weighted average cost of the junior subordinated debt at period end December 31, 2021 was 1.89% and the weighted average cost year to date for the year ended December 31, 2021 of 1.97 %. This does not take into account the unamortized discount at period end or the discount amortization recorded during the year. If the discount were taken into account, the weighted average cost year to date would be 2.85 %. This compares to a weighted average cost of the junior subordinated debt at period end December 31, 2020 of 2.05% and the weighted average cost year to date for the year ended December 31, 2020 of 2.51 %. If the discount were taken into account, the weighted average cost year to date would be 3.56% in 2020. During the second quarter of 2021, the Company redeemed $38.5 million in trust preferred securities that were acquired in the merger with CSFL. With the redemption of the trust preferred securities, the remaining fair value mark on these borrowings of $11.7 million was written off as an extinguishment of debt cost. 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 merger with CSFL in 2020, all of the Company’s trust preferred securities are no longer included in Tier 1 capital. Following the merger, these trust preferred securities are now included in Tier 2 capital for regulatory capital purposes. Subordinated Debt and Notes As of December 31, 2021, the Company recorded a $209.9 million liability for the subordinated debt, which was net of $3.1 million in debt issuance costs recorded on the CenterState subordinated debt issuance of $200.0 million. The remaining balance of the debt issuance costs are being amortized over a seven and one-half year period. The weighted average cost of the subordinated debt at period end December 31, 2021 was 5.80% and the weighted average cost year to date for the year ended December 31, 2021 of 5.81 %. The weighted average cost of the subordinated debt at period end December 31, 2020 was 5.78% and the weighted average cost year to date for the year ended December 31, 2020 of 5.69 %. This does not take into account the amortization of the debt issuance costs. If the debt issuance costs were taken into account, the weighted average cost year to date for the year ended December 31, 2021 and 2020 would be 6.06% and 5.93 %, respectively. Qualifying subordinated debt can be included in Tier 2 capital for regulatory capital purposes. Of our subordinated debt, the amounts for the Landmark Bancshares and CenterState Bank Corporation totaling million qualify for Tier 2 capital at December 31,2021. During the second quarter of 2021, the Company redeemed Line of Credit On November 15, 2021, the Company entered into an amendment and restatement to its Credit Agreement (the “Agreement”) with U.S. Bank National Association (the “Lender”). The Agreement provides for a $100 million unsecured line of credit by the Lender to the Company. The maturity date of the Agreement is November 14, 2022, 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 1.40% plus monthly reset term SOFR Rate. As of December 31, 2021 and 2020, there was outstanding balance associated with the line of credit. For the year ended December 31, 2021, the average balance for U.S. Bank line of credit was $2.0 million and year-to-date weighted average cost for the years ended December 31, 2021 was 2.22 %. There was no outstanding balance on the U.S. Bank line of credit during 2020. Principal maturities of other borrowings, net of unamortized discount or debt issuance costs, are summarized below: Junior Subordinated FHLB Subordinated (Dollars in thousands) Debt Advances Debt Total Year Ended December 31, 2022 $ — $ — $ — $ — 2023 — — — — 2024 — — — — 2025 — — — — 2026 — — — — Thereafter 117,165 — 209,901 327,066 $ 117,165 $ — $ 209,901 $ 327,066 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | Note 12—Income Taxes The provision for income taxes consists of the following: Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Current: Federal $ 43,959 $ 16,245 $ 40,375 State 16,512 13,296 4,965 Total current tax expense 60,471 29,541 45,340 Deferred: Federal 61,521 (36,801) (1,598) State 6,744 (9,400) 200 Total deferred tax expense (benefit) 68,265 (46,201) (1,398) Provision (benefit) for income taxes $ 128,736 $ (16,660) $ 43,942 The provision for income taxes differs from that computed by applying the federal statutory income tax rate of 21% in 2021, 2020 and 2019 to income before provision for income taxes, as indicated in the following analysis: Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Income taxes at federal statutory rate $ 126,899 $ 21,834 $ 48,389 Increase (reduction) of taxes resulting from: State income taxes, net of federal tax benefit 18,372 3,077 4,080 Non-deductible merger expenses — 1,344 — Increase in cash surrender value of BOLI policies (3,866) (2,389) (1,210) Tax-exempt interest (5,450) (2,257) (1,877) Income tax credits (11,759) (7,138) (6,881) Non-deductible FDIC premiums 2,380 1,364 133 Non-deductible executive compensation 530 1,016 315 Benefit of tax loss carryback under CARES Act — (31,468) — Other, net 1,630 (2,043) 993 $ 128,736 $ (16,660) $ 43,942 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. Under the CARES Act, tax law changed to include the ability to carry back net operating losses ("NOLs") generated in 2018 through 2020 for five years, which was previously disallowed. Due to differences in tax and GAAP accounting rules, which relates to a tax method change to fair value for loans, the Company filed a short period tax return as of the merger date, which generated a NOL. This loss was carried back to the 2015 through 2017 tax years at a 35% tax rate, generating an income tax benefit of $31.5 million during 2020. The components of the net deferred tax asset are as follows: December 31, (Dollars in thousands) 2021 2020 Allowance for credit losses $ 81,767 $ 119,602 Other-than-temporary impairment on SBIC investments — 268 Share-based compensation 6,290 2,807 Pension plan and post-retirement benefits 752 516 Deferred compensation 14,437 13,671 Purchase accounting adjustments — 11,772 Other real estate owned 1,577 899 Net operating loss and tax credit carryforwards 20,659 26,229 Deferred loan fees and costs — 12,826 Nonaccrual Interest 88 3,141 Lease liability 28,514 28,179 Mark to market assets 11,788 — Unrealized losses on investment securities available for sale 6,691 — Other 719 603 Total deferred tax assets 173,282 220,513 Unrealized gains on investment securities available for sale — 13,026 Depreciation 21,028 18,326 Intangible assets 27,732 34,648 Net deferred loan costs 3,579 — Right of use assets 27,136 27,012 Prepaid expense 725 1,950 Tax deductible goodwill 5,994 1,302 Mortgage servicing rights 16,100 6,134 Purchase accounting adjustments 890 — Other 302 1,534 Total deferred tax liabilities 103,486 103,932 Net deferred tax assets before valuation allowance 69,796 116,581 Less, valuation allowance (4,832) (5,635) Net deferred tax assets $ 64,964 $ 110,946 The Company had federal net operating loss (“NOL”) and realized built-in loss carryforwards of $61.8 million and $91.9 million for the years ended December 31, 2021 and 2020, respectively, which expire in varying amounts between 2026 to 2036. All of the Company's loss carryforwards are subject to Section 382 of the Internal Revenue Code, which places an annual limitation on the amount of federal net operating loss carryforwards which the Company may utilize after a change in control, and also 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 acquired federal net operating loss carryforwards of $62.9 million in the 2020 merger with CSFL. These acquired NOLs are subject to a combined annual Section 382 limitation of $16.0 million. In total, the allowable deduction for all loss carryforwards on an annual basis is $20.7 million. The Company is allowed to carry forward any such limited RBIL under terms similar to those related to NOLs. The Company also has acquired state net operating losses in Georgia, Florida and Alabama. These are also subject to annual limitations under Section 382, similar to the federal NOLs. The Company expects all Section 382 limited carryforwards to be realized within the applicable carryforward period. The Company has state net operating loss carryforwards of $169.4 million and $222.9 million for the years ended December 31, 2021 and 2020, respectively, most of which expire in varying amounts through 2039. There is a valuation allowance of $4.8 million on $122.5 million of state operating loss carryforwards at the parent company for which realizability is uncertain. 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, 2021. As of December 31, 2021, the Company had no material unrecognized tax benefits or accrued interest and penalties. It is the Company's policy to account for interest and penalties accrued relative to unrecognized tax benefits as a component of income tax expense. Generally, the Company’s federal and state income tax returns are no longer subject to examination by taxing authorities for years prior to 2018. |
Other Expense
Other Expense | 12 Months Ended |
Dec. 31, 2021 | |
Other Expense | |
Other Expense | Note 13—Other Expense The following is a summary of the components of other noninterest expense: Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Business development and staff related $ 14,571 $ 8,721 $ 8,837 Bankcard expense 3,459 2,224 2,331 Other loan expense 7,562 5,105 2,087 Director and shareholder expense 5,486 4,175 1,859 Armored carrier and courier expense 3,081 2,449 1,874 Property and sales tax 3,487 3,936 2,131 Bank service charge expense 2,037 1,725 776 Fraud and operational charge-off expense 4,727 2,231 1,179 Low income housing tax credit partnership amortization 9,986 12,977 6,141 Donations 2,563 2,121 999 Other 10,392 7,181 3,279 $ 67,351 $ 52,845 $ 31,493 |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Common Share | |
Earnings Per Common Share | Note 14—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) 2021 2020 2019 Basic earnings per common share: Net income $ 475,543 $ 120,632 $ 186,483 Weighted-average basic common shares 70,393 54,756 34,561 Basic earnings per common share $ 6.76 $ 2.20 $ 5.40 Basic earnings per common share: Net income $ 475,543 $ 120,632 $ 186,483 Weighted-average basic common shares 70,393 54,756 34,561 Effect of dilutive securities 496 307 236 Weighted-average dilutive shares 70,889 55,063 34,797 Basic earnings per common share $ 6.71 $ 2.19 $ 5.36 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 are as follows: Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Number of shares 57,169 136,844 62,235 Range of exercise prices $ 87.30 to $ 91.35 $ 61.42 to $ 91.35 $ 87.30 to $ 91.35 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | Note 15—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, 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 Other comprehensive income (loss) before reclassifications (119) 35,857 (26,140) 9,598 Amounts reclassified from accumulated other comprehensive income 117 (39) 36,896 36,974 Net comprehensive income (loss) (2) 35,818 10,756 46,572 Balance at December 31, 2020 (151) 47,740 — 47,589 Other comprehensive income (loss) before reclassifications 75 (68,865) — (68,790) Amounts reclassified from accumulated other comprehensive loss 133 (78) — 55 Net comprehensive income (loss) 208 (68,943) — (68,735) Balance at December 31, 2021 $ 57 $ (21,203) $ — $ (21,146) 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 2021 2020 2019 Income Statement Line Item Affected Losses on cash flow hedges: Interest rate contracts $ — $ 47,303 $ (349) Interest expense — (10,407) 77 Provision for income taxes — 36,896 (272) Net income Gains on sales of available for sale securities: $ (102) $ (50) $ 2,655 Securities gains (losses), net 24 11 (584) Provision for income taxes (78) (39) 2,071 Net income Losses and amortization of defined benefit pension: Actuarial losses $ 174 $ 152 $ 8,053 Salaries and employee benefits (41) (35) (1,772) Provision for income taxes 133 117 6,281 Net income Total reclassifications for the period $ 55 $ 36,974 $ 8,080 |
Restrictions on Subsidiary Divi
Restrictions on Subsidiary Dividends, Loans, or Advances | 12 Months Ended |
Dec. 31, 2021 | |
Restrictions on Subsidiary Dividends, Loans, or Advances | |
Restrictions on Subsidiary Dividends, Loans, or Advances. | Note 16—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 OCC is required if the total of all dividends declared by the Bank in any calendar year exceeds the total of its net profits for that year combined with its retained net profits for the preceding two years, less any required transfers to surplus. During 2021, the Bank paid dividends to the Company of $200.0 million. These funds were used to repurchase approximately $146.4 million of Company stock on the open market, to pay dividends to shareholders of approximately $135.2 million and to redeem and pay-off trust preferred and subordinated debt of $74.5 million during 2021. During first quarter of 2020, the Bank paid special dividends to the Company totaling $24.7 million for which SCBFI approval was not required. These funds were used to repurchase Company stock on the open market totaling $24.7 million during the first quarter of 2020. The Bank also paid a special dividend of $33.0 million during the first quarter of 2020 to provide the Company more general operating liquidity during the COVID-19 pandemic. The Bank paid approximately $32.6 million to fund quarterly shareholder divided payments. 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 $503.2 million and $479.5 million at December 31, 2021 and 2020, respectively. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Plans | |
Retirement Plans | Note 17—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 had 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) 2021 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ — $ — $ 28,906 Service cost — — 121 Interest cost — — 1,158 Actuarial loss — — 2,471 Benefits paid — — (538) Expenses — — (318) Plan termination settlements — — (31,800) Benefit obligation at end of year — — — Change in plan assets: Fair value of plan assets at beginning of year — — 30,545 Actual return on plan assets — — 2,111 Benefits paid — — (538) Expenses — — (318) Plan termination settlements — — (31,800) Fair value of plan assets at end of year — — — Funded status $ — $ — $ — At December 31, 2021 and 2020, there were no net losses recognized in accumulated other comprehensive income excluding related income tax effects. The components of net periodic pension cost and other amounts recognized in other comprehensive income are as follows: December 31, (Dollars in thousands) 2021 2020 2019 Interest cost $ — $ — $ 1,157 Service cost — — 121 Expected return on plan assets — — (2,361) Recognized net actuarial loss — — 483 Net periodic pension benefit — — (600) Plan termination settlement — — 10,126 Net periodic pension cost with settlement — — 9,526 Net loss — — 2,722 Amortization of net gain — — (483) Plan termination settlement adjustment — — (10,126) Total amount recognized in other comprehensive income — — (7,887) Total recognized in net periodic benefit cost and other comprehensive income $ — $ — $ 1,639 Due to the termination of the pension plan in 2019, there was no benefit obligation or plan assets at December 31, 2021 and 2020. The weighted-average assumptions used to determine net periodic pension cost are as follows: Year ended December 31, 2021 2020 2019 Discount rate — % — % 4.10 % Expected long-term return on plan assets — % — % 7.75 % For the year ended December 31, 2019, the discount rate of 4.10% 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. The plan made no purchases of the Company’s stock during 2021, 2020 and 2019. 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) 2021 2020 2019 Pension plan termination expense $ — $ — $ 9,526 Employee savings plan/ 401(k) 14,991 10,962 6,659 Supplemental executive retirement plan 3,475 2,862 2,343 Post-retirement benefits 67 43 144 $ 18,533 $ 13,867 $ 18,672 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 pre-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% discretionary matching contribution contingent upon achievement of the Company’s annual financial goals and payable the first quarter of the following year. Based on our financial performance in 2021, we do not expect to pay a discretionary matching contribution in the first quarter of 2022. As a result of the merger with CSFL in 2020, all former CSFL employees became eligible to participate in the Company’s 401(k) plan as of legal close. CSFL’s existing 401(k) plan balances were merged into the Company’s 401(k) plan on January 4, 2021. 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, 2021 | |
Post-Retirement Benefits | |
Post-Retirement Benefits | Note 18—Post-Retirement Benefits At December 31, 2021, the Company and its subsidiary have two post-retirement health and life insurance benefit plans, SouthState 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, 2021, 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) 2021 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 209 $ 254 $ 309 Interest cost 3 6 11 Actuarial loss 11 (19) (33) Benefits paid (28) (32) (33) Benefit obligation at end of year 195 209 254 Change in plan assets: Fair value of plan assets at beginning of year — — — Employer contribution 28 32 33 Benefits paid (28) (32) (33) Fair value of plan assets at end of year — — — Funded status $ (195) $ (209) $ (254) Year Ended December 31, 2021 2020 2019 Weighted-average assumptions used to determine benefit obligation at December 31: Discount rate 2.10 % 1.60 % 2.70 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 1.60 % 2.70 % 3.80 % 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) 2021 2020 2019 Interest cost $ 3 $ 6 $ 11 Recognized net actuarial loss — 2 6 Net periodic benefit cost 3 8 17 Net gain 11 (19) (33) Amortization of gain — (2) (6) Total amount recognized in other comprehensive income 11 (21) (39) Total recognized in net periodic benefit cost and other comprehensive income $ 14 $ (13) $ (22) 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 $1,000. Estimated future benefit payments (including expected future service as appropriate): (Dollars in thousands) 2022 $ 27 2023 25 2024 23 2025 22 2026 20 2027-2031 67 $ 184 The Company expects to contribute approximately $27,000 to the retiree medical plan in 2022. 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, 2021, 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) 2021 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 2,070 $ 2,109 $ 2,281 Interest cost 31 54 82 Actuarial loss (110) 180 7 Benefits paid (246) (285) (273) Less: Federal subsidy on benefits paid 9 12 12 Benefit obligation at end of year 1,754 2,070 2,109 Change in plan assets: Fair value of plan assets at beginning of year — — — Employer contribution 236 273 261 Participants’ contributions 10 12 12 Benefits paid (246) (285) (273) Fair value of plan assets at end of year — — — Funded status $ (1,754) $ (2,070) $ (2,109) Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost are as follows: Year Ended December 31, 2021 2020 2019 Weighted-average assumptions used to determine benefit obligation at December 31: Discount rate 2.10 % 1.60 % 2.70 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 1.60 % 2.70 % 3.80 % 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) 2021 2020 2019 Interest cost $ 31 $ 54 $ 82 Recognized net actuarial loss 174 151 160 Net periodic benefit cost 205 205 242 Net (gain) loss (110) 180 7 Amortization of loss (174) (151) (160) Total amount recognized in other comprehensive income (284) 29 (153) Total recognized in net periodic benefit cost and other comprehensive income $ (79) $ 234 $ 89 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 $141,000. Estimated future benefit payments (including expected future service as appropriate): (Dollars in thousands) 2022 $ 216 2023 203 2024 189 2025 174 2026 159 2027-2031 583 $ 1,524 The Company expects to contribute approximately $216,000 to the retiree welfare plan in 2022. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-Based Compensation | |
Share-Based Compensation | Note 19—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. Our 2004, 2012, 2019 and 2020 share-based compensation plans are long-term retention plans intended to attract, retain, and provide incentives for key employees and non-employee directors in the form of incentive and non-qualified stock options, restricted stock, and restricted stock units (“RSUs”). Our 2020 plan was adopted by our shareholders at our annual meeting on October 29, 2020. The Company also assumed the obligations of CSFL under various equity incentive plans pursuant to the merger of CSFL on June 7, 2020. 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, 2019 and 2020 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, 2012 or 2019 plans after January 26, 2012, February 1, 2019, and October 29, 2020, respectively, and the plans are closed other than for any options still unexercised and outstanding. The 2020 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 2,072,245 shares registered under the 2020 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, 2021 2020 2019 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at January 1, 2021 256,425 $ 59.01 176,888 $ 67.14 213,866 $ 61.28 Assumed stock options and warrants from CSFL merger — — 136,831 37.85 — — Exercised (64,075) 45.35 (52,331) 32.12 (36,978) 33.26 Forfeited (6,250) 85.42 (4,963) 48.89 — — Expired (975) (24.37) — — Outstanding at December 31, 2021 185,125 63.03 256,425 59.01 176,888 67.14 Exercisable at December 31, 2021 185,125 63.03 256,425 59.01 131,216 60.12 Weighted-average fair value of options granted during the year $ — $ — $ 28.01 The aggregate intrinsic value of 185,125, 256,425, and 176,888 stock options outstanding at December 31, 2021, 2020, and 2019 was $3.8 million, $4.6 million, and $3.7 million, respectively. The aggregate intrinsic value of 185,125, million, respectively. The aggregate intrinsic value of 64,075, 52,331, and Information pertaining to options outstanding at December 31, 2021, 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 $ 21.66 - $ 40.00 19,345 1.7 years $ 32.23 19,345 $ 32.23 1.7 years $ 40.01 - $ 55.00 56,754 4.2 years $ 44.70 56,754 $ 44.70 4.2 years $ 55.01 - $ 70.00 51,857 3.1 years $ 63.62 51,857 $ 63.62 3.1 years $ 70.01 - $ 85.00 — — years $ — — $ 0.00 — years $ 85.01 - $ 91.35 57,169 5.6 years $ 91.12 57,169 $ 91.12 5.6 years 185,125 4.0 years $ 63.03 185,125 $ 63.03 4.0 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. We have not granted any stock options for the years ended December 31, 2021, 2020 and 2019, and therefore, we have not used the Black-Scholes option pricing model to fair value options. As of December 31, 2021 and 2020, there were no unrecognized compensation costs related to non- vested stock option grants under the plans. 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 total fair value of shares vested during the years ended December 31, 2021, 2020, and 2019 was approximately $0, $1.4 million, and $799,000 , respectively. Compensation expense of $0, $720,000, and $641,000 was recorded in 2021, 2020, and 2019, respectively. Of the expense in 2020, approximately $481,000 was recognized in June 2020 due to the acceleration of vesting of stock options through the merger with CSFL. Restricted Stock We, from time-to-time, grant 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 our shareholders by providing economic value directly related to increases in the value of our stock. The value of the stock awarded is established as the fair market value of the stock at the time of the grant. We recognize expenses, equal to the total value of such awards, ratably over the vesting period of the stock grants. Restricted stock grants to employees typically “cliff vest” after four years . Grants to non-employee directors typically vest within a 12-month period. All restricted stock agreements are conditioned upon continued employment, or service in the case of directors. 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. Due to the merger between the Company and CSFL effective June 7, 2020, a total of 29,303 restricted stock awards became fully vested. Non-vested restricted stock for the year ended December 31, 2021 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, 2021 11,004 $ 59.42 Vested (7,938) 56.43 Nonvested at December 31, 2021 3,066 $ 67.31 The Company granted 0, 9,145, and 8,934 shares for the years ended December 31, 2021, 2020, and 2019, respectively. The weighted-average- grant-date fair value of restricted shares granted in 2021, 2020, and 2019 was $0, , respectively. Compensation expense of $370,000, $1.5 million, and $1.7 million was recorded in 2021, 2020, and 2019, respectively. Of the expense in 2020, approximately $704,000 was recognized in June 2020 due to the acceleration of vesting of restricted stock awards through the merger with CSFL. The vesting schedule of these shares as of December 31, 2021 is as follows: Shares 2022 750 2023 750 2024 1,566 3,066 As of December 31, 2021, there was $166,000 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 2.65 years as of December 31, 2021. The total fair value of shares vested during the years ended December 31, 2021, 2020 and 2019 was approximately $448,000, $4.6 million, and $3.0 million, respectively. Restricted Stock Units (“RSU”) We, from time-to- time, also grant performance RSUs and time-vested RSUs to key employees. These awards help align the interests of these employees with the interests of our shareholders by providing economic value directly related to our performance. Some performance RSU grants contain a three-year performance period while others contain a one to two-year two from the grant date). We communicate threshold, target, and maximum performance RSU awards and performance targets to the applicable key employees at the beginning of a performance period. Due to the merger with CSFL, all legacy and assumed performance based restricted stock units converted to a time-vesting requirement. With respect to some long-term incentive awards, dividend equivalents are accrued at the same rate as cash dividends paid for each share of the Company’s common stock during the performance or time-vested period, and subsequently paid when the shares are issued on the vesting or settlement date. The value of the RSUs awarded is established as the fair market value of the stock at the time of the grant. We recognize expenses on a straight- line basis typically over the performance and vesting/or time-vesting periods based upon the probable performance target, as applicable, that will be met. For the year ended December 31, 2021, we accrued for 100.0 % of the RSUs granted. Due to the merger between the Company and CSFL effective June 7, 2020, a total of 242,018 restricted stock units became fully vested in 2020. Nonvested RSUs for the year ended December 31, 2021 is summarized in the following table. Weighted- Average Grant-Date Restricted Stock Units Shares Fair Value Outstanding at January 1, 2021 750,821 $ 60.88 Granted 301,230 81.14 Vested (93,081) 64.66 Forfeited (10,757) 64.20 Outstanding at December 31, 2021 948,213 $ 67.01 The nonvested shares of 948,213 at December 31, 2021 includes 25,937 shares that have fully vested but are subject to a two-year holding period, which commenced at the end of their respective vesting period. These vested shares will be released and issued into shares of common stock at the end of their respective two-year holding period, the last of which will end by December 31, 2023. The Company granted 301,230, 382,205, and 159,521 shares for the year ended December 31, 2021, 2020, and 2019, respectively. The weighted-average grant-date fair value of restricted stock units granted in 2021 was $81.14 . Compensation expense of $25.2 million, $21.0 million, and $6.4 million was recorded in 2021, 2020, and 2019, respectively. Of the expense in 2020, approximately $7.5 million was recognized in June 2020 due to the acceleration of vesting of restricted stock units through the merger with CSFL. As of December 31, 2021, there was $26.2 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 1.7 years as of December 31, 2021. The total fair value of restricted stock units that vested during the years ended December 31, 2021, 2020, and 2019 was approximately $6.0 million, $23.6 million, and $5.8 million, respectively. Employee Stock Purchase Plan The Company previously registered 363,825 shares of common stock in connection with the establishment of an Employee Stock Purchase Plan. At the annual shareholders meeting on October 29, 2020, a proposal was adopted to increase the shares of common stock that may be issued under the plan by up to 1,400,000 shares. The plan is available to all employees who have attained age 21 and completed six months of service. The Company currently has approximately 1.4 million 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 %. Employees purchased 33,013, 32,476 and 21,100 shares in 2021, 2020 and 2019, respectively, through the Employee Stock Purchase Plan. The Company recognized $126,000, $81,000 and $75,000 in share-based compensation expense for the years ended December 31, 2021, 2020 and 2019, respectively. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2021 | |
Stock Repurchase Program | |
Stock Repurchase Program | Note 20—Stock Repurchase Program In January 2019, the Board of Directors approved a stock repurchase program (“2019 Repurchase Program”) to repurchase up to 1,000,000 of our common shares, all of which was repurchased by 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. On January 27, 2021, the Company’s Board of Directors approved a new stock repurchase program (“2021 Stock Repurchase Plan”) authorizing the Company to repurchase up to of the Company’s common shares. As of December 31, 2021, we have repurchased 2021 at an average price per share of $80.51 per share (excluding commission expense) . U shares of common stock under the program. per share (excluding commission expense). These shares repurchased in 2020 were under the 2019 Repurchase Program. million in 2021, 2020, and 2019, respectively. Of the amounts in 2020, 86,263 shares at a cost of $5.2 million were related to the vesting of restricted stock due to the merger with CSFL. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Lease Commitments | |
Lease Commitments | Note 21—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. 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. 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. As of December 31, 2021 and 2020, we had operating ROU assets of $110.3 million and $113.4 million, respectively, and operating lease liabilities of $115.9 million and $118.3 million, respectively. We maintain leases on land and buildings for our operating centers, branch facilities and ATM locations. Most leases include . 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. (Dollars in thousands) Year Ended December 31, 2021 2020 2019 Lease Cost Components: Amortization of ROU assets - finance leases $ 466 $ 289 $ — Interest on lease liabilities - finance leases 56 44 — Operating lease cost (cost resulting from lease payments) 17,236 14,266 8,804 Short-term lease cost 446 404 494 Variable lease cost (cost excluded from lease payments) 2,768 1,081 430 Total lease cost $ 20,972 $ 16,084 $ 9,728 Supplemental Cash Flow and Other Information Related to Leases: Finance lease - operating cash flows $ 56 $ 42 $ — Finance lease - financing cash flows 427 255 — Operating lease - operating cash flows (fixed payments) 16,435 12,876 7,725 Operating lease - operating cash flows (net change asset/liability) (12,790) (9,123) 1,457 New ROU assets - operating leases 9,623 43,583 10,239 New ROU assets - finance leases — 5,374 — Weighted - average remaining lease term (years) - finance leases 6.41 7.40 — Weighted - average remaining lease term (years) - operating leases 10.95 11.51 14.14 Weighted - average discount rate - finance leases 1.7% 1.7% — Weighted - average discount rate - operating leases 3.2% 3.3% 3.9% Operating lease payments due: 2022 $ 15,215 2023 14,510 2024 13,340 2025 11,932 2026 11,468 Thereafter 73,647 Total undiscounted cash flows 140,112 Discount on cash flows (24,198) Total operating lease liabilities $ 115,914 As of December 31, 2021, the Company also holds a small number of finance leases assumed in connection to the CSFL merger completed in 2020. These leases are all real estate leases. Terms and conditions are similar to those real estate operating leases described above. Lease classifications from the acquired institutions were retained. At December 31, 2021, we do not maintain any leases with related parties, and we determined that the number and dollar amount of our equipment leases was immaterial. As of December 31, 2021, we have two additional operating leases that have not yet commenced of . These operating leases will commence in fiscal year 2022 with a lease term of See further discussion in Note 1 — |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Contingent Liabilities | |
Contingent Liabilities | Note 22—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. 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, 2021, 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, 2021 | |
Related Party Transactions | |
Related Party Transactions | Note 23—Related Party Transactions During 2021 and 2020, 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 $10.1 million and $28.7 million at December 31, 2021 and 2020 respectively. During 2021, $102.2 million of new loans were made to this group while repayments of $120.8 million were received during the year. During 2020, $12.4 million of new loans were made to this group while repayments of $17.7 million were received during the year. There were also additions to related party loans of $31.8 million due to the addition of new related parties through the acquisition of CSFL, and reductions to related party loans of $35.3 million due to the removal of related parties through the acquisition of CSFL in 2020. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments with Off-Balance Sheet Risk | |
Financial Instruments with Off-Balance Sheet Risk | Note 24—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, 2021 and 2020, the following financial instruments, whose contract amounts represent credit risk, were outstanding: Year Ended December 31, (Dollars in thousands) 2021 2020 Commitments to extend credit $ 7,416,311 $ 5,929,845 Standby letters of credit and financial guarantees 71,824 76,507 $ 7,488,135 $ 6,006,352 As of December 31, 2021 and 2020, the subsidiary had recorded a liability for expected credit losses on unfunded commitments, excluding unconditionally cancellable exposures and letters of credit, of $30.5 million and million, respectively, which was recorded in Other Liabilities on the Balance Sheet. — 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, 2021 | |
Fair Value. | |
Fair Value | Note 25—Fair Value FASB ASC 820, Fair Value Measurements and Disclosures , defines fair value, establishes a framework for measuring fair value under accounting principles generally accepted in the United States, and enhances disclosures about fair value measurements. FASB ASC 820 clarifies that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. 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 and trading securities, derivative contracts, mortgage loans held for sale, and MSRs are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans, OREO, bank properties held for sale, 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. Trading Securities The fair values of trading securities are determined as follows: (1) for those securities that have traded prior to the date of the consolidated balance sheet but have not settled (date of sale) until after such date, the sales price is used as the fair value; and, (2) for those securities which have not traded as of the date of the consolidated balance sheet, the fair value was determined by broker price indications of similar or same securities. 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. Level 2 securities include mortgage-backed securities and debentures issued by government sponsored entities, municipal bonds and corporate debt securities, or U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Securities held to maturity are valued at quoted market prices or dealer quotes similar to securities available for sale. The carrying value of FHLB and FRB stock approximates fair value based on the redemption provisions. Mortgage Loans Held for Sale Mortgage loans held for sale are carried at fair value with changes in fair value recognized in current period earnings. 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 We do not record loans at fair value on a recurring basis. However, from time to time, a loan may be individually evaluated for expected credit losses if it no longer shares similar risk characteristics with other pooled loans. Once a loan is identified as and individually evaluated loan, Management measures expected credit losses using estimated fair value methodologies. The fair value of the individually evaluated loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Those individually evaluated loans not requiring an ACL represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At December 31, 2021, approximately 55 % of the individually evaluated loans were evaluated based on the fair value of the collateral because such loans were considered collateral dependent. Individually evaluated 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, we consider 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, we consider the individually evaluated loan as nonrecurring Level 3. Other Real Estate Owned (“OREO”) OREO, consisting of properties obtained through foreclosure or in satisfaction of loans, is typically reported at fair value, determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, and 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 ACL. Gains or losses on sale and generally any subsequent adjustments to the value are recorded as a component of OREO Expense and Loan Related Expense in the Consolidated Statements of Income. Bank Property Held for Sale Bank property held for sale consists of locations that Management has identified as no longer needed and reclassified from bank premises. These properties are typically reported at fair value, determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, and adjusted for estimated selling costs (Level 2). However, bank property held for sale is considered Level 3 in the fair value hierarchy because Management has qualitatively applied a discount due to the size, supply of inventory, restrictions 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 a property is identified as held for sale, any excess of the book balance over the fair value of the real estate is treated as a charge against earnings. Gains or losses on sale and generally any subsequent write-downs to the value are recorded as a component in Other Expense in the Consolidated Statements of Income. 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 28—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, 2021: Assets Derivative financial instruments $ 414,742 $ — $ 414,742 $ — Loans held for sale 191,723 — 191,723 — Trading securities 77,689 — 77,689 — Securities available for sale: U.S. Government agencies 97,117 — 97,117 — Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,831,039 — 1,831,039 — Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 725,995 — 725,995 — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,207,241 — 1,207,241 — State and municipal obligations 812,689 — 812,689 — Small Business Administration loan-backed securities 500,663 — 500,663 — Corporate securities 18,734 — 18,734 — Total securities available for sale 5,193,478 — 5,193,478 — Mortgage servicing rights 65,620 — — 65,620 $ 5,943,252 $ — $ 5,877,632 $ 65,620 Liabilities Derivative financial instruments $ 410,137 $ — $ 410,137 $ — December 31, 2020: Assets Derivative financial instruments $ 813,899 $ — $ 813,899 $ — Loans held for sale 290,467 — 290,467 — Trading securities 10,674 — 10,674 — Securities available for sale: U.S. Government agencies 29,256 — 29,256 — Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,367,132 — 1,367,132 — Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 755,551 — 755,551 — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 240,108 — 240,108 — State and municipal obligations 520,039 — 520,039 — Small Business Administration loan-backed securities 404,884 — 404,884 — Corporate securities 13,702 — 13,702 — Total securities available for sale 3,330,672 — 3,330,672 — Mortgage servicing rights 43,820 — — 43,820 $ 4,489,532 $ — $ 4,445,712 $ 43,820 Liabilities Derivative financial instruments $ 804,832 $ — $ 804,832 $ — There were no financial instruments transferred between Level 1 and Level 2 of the valuation hierarchy for the years ended December 31, 2021 and 2020. 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. There were no changes in hierarchy classifications of Level 3 assets or liabilities for the year ended December 31, 2021. 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, 2021 and 2020 is as follows: (Dollars in thousands) Assets Liabilities Fair value, January 1, 2021 $ 43,820 $ — Servicing assets that resulted from transfers of financial assets 26,733 — Changes in fair value due to valuation inputs or assumptions 4,932 — Changes in fair value due to decay (9,865) — Fair value , December 31, 2021 $ 65,620 $ — Fair value, January 1, 2020 $ 30,525 $ — Servicing assets that resulted from transfers of financial assets 28,456 — Changes in fair value due to valuation inputs or assumptions (6,991) — Changes in fair value due to decay (8,170) — Fair value, December 31, 2020 $ 43,820 $ — There were no unrealized losses included in accumulated other comprehensive income related to Level 3 financial assets and liabilities at December 31, 2021 or 2020. See Note 29 — 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, 2021: OREO $ 2,736 $ — $ — $ 2,736 Bank property held for sale 9,578 — — 9,578 Individually evaluated loans 20,802 — — 20,802 December 31, 2020: OREO $ 11,914 $ — $ — $ 11,914 Bank property held for sale 36,006 — — 36,006 Individually evaluated loans 17,609 — — 17,609 Quantitative Information about Level 3 Fair Value Measurements Weighted Average December 31, December 31, Valuation Technique Unobservable Input 2021 2020 Nonrecurring measurements: Individually evaluated loans Discounted appraisals and discounted cash flows Collateral discounts 9 % 5 % OREO and premises held for sale Discounted appraisals Collateral discounts and estimated costs to sell 24 % 14 % Fair Value of Financial Instruments We used the following methods and assumptions in estimating our 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, 2021 and 2020. 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 Trading Securities I nvestment Securities —Securities available for sale are valued at quoted market prices or dealer quotes. Securities held to maturity are valued at quoted market prices or dealer quotes similar to securities available for sale. The carrying value of FHLB and FRB stock approximates fair value based on the redemption provisions. The carrying value of our investment in unconsolidated subsidiaries approximates fair value. See Note 3 — Loans held for sale Loans — The fair value of loans is based on an exit price. To estimate an exit price, all loans (fixed and variable) are being valued with a discounted cash flow analyses for loans that includes our 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 our 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 we currently offer for loans with similar terms to borrowers of similar credit quality. Fair values for non-performing loans are estimated using a discounted cash flow analysis. Deposit Liabilities their carrying amounts). The carrying amounts of variable-rate, fixed- term money market accounts, and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. 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 commitments to extend credit are estimated taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. 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, 2021 Financial assets: Cash and cash equivalents $ 6,843,147 $ 6,843,147 $ 6,843,147 $ — $ — Trading securities 77,689 77,689 — 77,689 — Investment securities 7,173,947 7,132,110 160,568 6,971,542 — Loans held for sale 191,723 191,723 — 191,723 — Loans, net of allowance for credit losses 23,626,359 23,921,372 — — 23,921,372 Accrued interest receivable 90,069 90,069 — 19,241 70,828 Mortgage servicing rights 65,620 65,620 — — 65,620 Interest rate swap - non-designated hedge 408,776 408,776 — 408,776 — Other derivative financial instruments (mortgage banking related) 5,966 5,966 — 5,966 — Financial liabilities: Deposits 35,054,829 35,050,516 — 35,050,516 — Federal funds purchased and securities sold under agreements to repurchase 781,239 781,239 — 781,239 — Other borrowings 327,066 334,640 — 334,640 — Accrued interest payable 3,345 3,345 — 3,345 — Interest rate swap - non-designated hedge 410,137 410,137 — 410,137 — Off balance sheet financial instruments: Commitments to extend credit — 93,501 — 93,501 — December 31, 2020 Financial assets: Cash and cash equivalents $ 4,609,255 $ 4,609,255 $ 4,609,255 $ — $ — Trading securities 10,674 10,674 — 10,674 — Investment securities 4,446,657 4,448,300 160,443 4,287,857 — Loans held for sale 290,467 290,467 — 290,467 — Loans, net of allowance for credit losses 24,206,825 24,757,859 — — 24,757,859 Accrued interest receivable 107,601 107,601 — 12,952 94,649 Mortgage servicing rights 43,820 43,820 — — 43,820 Interest rate swap - non-designated hedge 802,763 802,763 — 802,763 — Other derivative financial instruments (mortgage banking related) 11,136 11,136 — 11,136 — Financial liabilities: Deposits 30,693,882 30,719,416 — 30,719,416 — Federal funds purchased and securities sold under agreements to repurchase 779,666 779,666 — 779,666 — Other borrowings 390,179 386,126 — 386,126 — Accrued interest payable 7,103 7,103 — 7,103 — Interest rate swap - non-designated hedge 804,832 804,832 — 804,832 — Off balance sheet financial instruments: Commitments to extend credit — 136,726 — 136,726 — |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Matters | |
Regulatory Matters | Note 26—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 average consolidated on-balance sheet assets (minus amounts deducted from Tier 1 capital). The leverage ratio does not involve assigning risk weights to assets. Under current regulations, the Company and the Bank are subject to a minimum ratio of common equity Tier 1 capital (“CET1”) to risk-weighted assets of 4.5%. and a minimum required ratio of Tier 1 capital to risk-weighted assets of 6 %. The minimum required leverage ratio is 4 %. The minimum required total capital to risk-weighted assets ratio is 8%. 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 CET1, and the buffer applies to all three risk-based measurements (CET1, Tier 1 capital and total capital). The capital conservation buffer became fully phased-in on January 1, 2019 and 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, 2021 and December 31, 2020 for the Company and the Bank under the current capital rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations. Required to be Minimum Capital Considered Well Actual Required - Basel III Capitalized (Dollars in thousands) Amount Ratio Capital Amount Ratio Capital Amount Ratio December 31, 2021: Common equity Tier 1 to risk-weighted assets: Consolidated $ 3,201,644 11.75 % $ 1,906,831 7.00 % $ 1,770,629 6.50 % SouthState Bank (the Bank) 3,431,069 12.62 % 1,902,954 7.00 % 1,767,029 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 3,201,644 11.75 % 2,315,438 8.50 % 2,179,236 8.00 % SouthState Bank (the Bank) 3,431,069 12.62 % 2,310,730 8.50 % 2,174,804 8.00 % Total capital to risk-weighted assets: Consolidated 3,692,674 13.56 % 2,860,247 10.50 % 2,724,045 10.00 % SouthState Bank (the Bank) 3,594,099 13.22 % 2,854,431 10.50 % 2,718,505 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 3,201,644 8.05 % 1,590,045 4.00 % 1,987,556 5.00 % SouthState Bank (the Bank) 3,431,069 8.65 % 1,587,212 4.00 % 1,984,015 5.00 % December 31, 2020: Common equity Tier 1 to risk-weighted assets: Consolidated $ 3,010,174 11.77 % $ 1,789,977 7.00 % $ 1,662,122 6.50 % SouthState Bank (the Bank) 3,157,098 12.39 % 1,784,113 7.00 % 1,656,677 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 3,010,174 11.77 % 2,173,544 8.50 % 2,045,688 8.00 % SouthState Bank (the Bank) 3,157,098 12.39 % 2,166,423 8.50 % 2,038,987 8.00 % Total capital to risk-weighted assets: Consolidated 3,642,039 14.24 % 2,684,966 10.50 % 2,557,110 10.00 % SouthState Bank (the Bank) 3,397,463 13.33 % 2,676,170 10.50 % 2,548,733 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 3,010,174 8.27 % 1,455,139 4.00 % 1,818,924 5.00 % SouthState Bank (the Bank) 3,157,098 8.71 % 1,450,604 4.00 % 1,813,255 5.00 % As of December 31, 2021 and 2020, 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. In June 2016, the FASB issued ASU No. 2016-13 which required an entity to utilize a new impairment model known as the CECL model to estimate its lifetime “expected credit loss.” applied the provisions of the standard using the modified retrospective method as a cumulative-effect adjustment to retained earnings. million. Instead of recognizing the effects on regulatory capital from ASU 2016-13 at adoption, the Company initially elected the option for recognizing the adoption date effects on the Company’s regulatory capital calculations over a three-year phase-in. In March 2020, in response to the COVID-19 pandemic, the regulatory agencies provided an additional transitional method option of a two-year deferral for the start of the three-year phase-in of the recognition of the adoption date effects of ASU 2016-13 along with an option to defer the current impact on regulatory capital calculations of ASU 2016-13 during the first two years (“five-year method”). Under this five-year method, the Company would recognize an estimate of the previous incurred loss method for determining the allowance for credit losses in regulatory capital calculations and the difference from the CECL method would be deferred for two years. After two years, the effects from adoption date and the deferral difference from the first two years of applying CECL would be phased-in over three years using the straight-line method. The Company chose the five-year method and is deferring the recognition of the effects from adoption date and the CECL difference from the first two years of application. |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Statements of Parent Company | |
Condensed Financial Statements of Parent Company | Note 27—Condensed Financial Statements of Parent Company Financial information pertaining only to SouthState Corporation is as follows: Condensed Balance Sheets December 31, (Dollars in thousands) 2021 2020 ASSETS Cash $ 81,051 $ 131,522 Investment in subsidiaries 5,039,776 4,802,993 Other assets 10,556 108,086 Total assets $ 5,131,383 $ 5,042,601 LIABILITIES AND SHAREHOLDERS’ EQUITY Corporate and subordinated debentures $ 327,066 $ 390,179 Other Liabilities 1,377 4,542 Shareholders’ equity 4,802,940 4,647,880 Total liabilities and shareholders’ equity $ 5,131,383 $ 5,042,601 Condensed Statements of Income Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Income: Dividends from subsidiaries $ 200,083 $ 90,404 $ 214,852 Operating income 25 52 5,386 Total income 200,108 90,456 220,238 Operating expenses 40,727 45,574 15,409 Income before income tax benefit and equity in undistributed earnings of subsidiaries 159,381 44,882 204,829 Applicable income tax benefit 9,053 8,960 1,883 Equity in undistributed earnings of subsidiaries (excess distribution) 307,109 66,790 (20,229) Net income available to common shareholders $ 475,543 $ 120,632 $ 186,483 Condensed Statements of Cash Flows Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Cash flows from operating activities: Net income $ 475,543 $ 120,632 $ 186,483 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,382 1,528 666 Share-based compensation 25,721 23,316 8,839 Extinguishment of debt cost 11,706 — — Gain on sale of securities available for sale — — (5,366) Decrease (increase) in other assets 5,690 (11,710) (159) Decrease in other liabilities (3,648) (12,323) (959) Undistributed earnings of subsidiaries (307,109) (66,790) 20,229 Net cash provided by operating activities 209,285 54,653 209,733 Cash flows from investing activities: Proceeds from sales and calls of other investment securities — — 5,366 Repayment of investments in and advances to subsidiaries 93,591 163,000 — Net cash inflow from acquisitions — 19,650 — Net cash provided by investing activities 93,591 182,650 5,366 Cash flows from financing activities: Repayment of other borrowings (75,878) — — Common stock issuance 2,384 1,537 1,394 Common stock repurchased (147,421) (32,431) (159,431) Dividends paid on common stock (135,337) (98,256) (57,696) Stock options exercised 2,905 1,681 1,230 Net cash used in financing activities (353,347) (127,469) (214,503) Net (decrease) increase in cash and cash equivalents (50,471) 109,834 596 Cash and cash equivalents at beginning of period 131,522 21,688 21,092 Cash and cash equivalents at end of period $ 81,051 $ 131,522 $ 21,688 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 28—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, 2021 December 31, 2020 Balance Sheet Notional Estimated Fair Value Notional Estimated Fair Value (Dollars in thousands) Location Amount Gain Loss Amount Gain Loss Fair value hedge of interest rate risk: Pay fixed rate swap with counterparty Other Liabilities $ 15,716 $ — $ 1,355 $ 16,439 $ — $ 2,086 Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with borrowers Other Assets and Other Liabilities 10,404,605 408,776 69,998 9,324,359 802,717 46 Matched interest rate swaps with counterparty Other Assets and Other Liabilities 10,402,394 — 338,784 9,324,359 46 802,700 Not designated hedges of interest rate risk - mortgage banking activities: Contracts used to hedge mortgage servicing rights Other Assets and Other Liabilities 205,000 1,228 — 149,000 119 — Contracts used to hedge mortgage pipeline Other Assets 324,000 4,738 — 528,500 11,017 — Total derivatives $ 21,351,715 $ 414,742 $ 410,137 $ 19,342,657 $ 813,899 $ 804,832 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 interest rate swaps that are classified as a cash flow hedges in accordance with FASB ASC 815, Derivatives and Hedging 31, 2021 and 2020. For more information regarding the fair value of the Company’s derivative financial instruments, see Note 25 — During 2020 the Company utilized interest rate swap agreements to manage interest rate risk related to funding through short term FHLB advances. During the fourth quarter of 2020, the Company made the decision to repay the FHLB advances and terminate the interest rate swap agreements due to the current low interest rate environment and the expectation that interest rates will remain low during the average life of these interest rate swaps. As a result, in December 2020, the Company recorded through earnings termination costs of $40.8 million related to the interest rate swaps which included $2.0 million in interest expense on the interest rate swap hedges. 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. Historically, for designated hedging relationships, we have had 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. The Company did not maintain any cash flow hedges on the balance sheet throughout the year ended December 31, 2021. The Company recognized an after-tax unrealized gain on its cash flow hedges in other comprehensive income of $10.8 million for the year ended December 31, 2020. During 2020, at the time of the termination of the cash flow hedges, the Company reclassified into current earnings the unrealized loss on the cash flow hedge of $38.8 million ($30.3 million after-tax). There was no ineffectiveness in the cash flow hedges during the year ended December 31, 2020. (See Note 15 — Credit risk related to the derivative arises when amounts receivable from the counterparty (derivatives dealer) exceed those payable. We control the risk of loss by only transacting with derivatives 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. With the Company not maintaining any cash flow hedges at December 31, 2021 and 2020, there was no collateral pledged. Balance Sheet Fair Value Hedge As of December 31, 2021 and 2020, the Company maintained loan swaps, with an aggregate notional amount of $15.7 million and $16.4 million, respectively, 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 interest rates 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 Company is in process of implementing a plan to transition these interest rate swap contracts to a reference rate other than LIBOR. For Discussion related to Reference Rate Reform, please refer to Issued But Not Yet Adopted Accounting Standards within Note 1—Summary of Significant Accounting Policies. 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, 2021 and 2020, the interest rate swaps had an aggregate notional amount of approximately billion, respectively. At December 31, 2021, the fair value of the interest rate swap derivatives was recorded in other assets at . At December 31, 2020, the fair value of the interest rate swap derivatives was recorded in other assets at . All changes in fair value are recorded through earnings as noninterest income. As of December 31, 2021, we provided $347.6 million of cash collateral on the counterparty swaps which is included in cash and cash equivalents on the balance sheet as deposits in other financial institutions (restricted cash). The Company also provided $348.8 million in investment securities at market value as collateral on the counterparty swaps which is included in investment securities. Foreign Exchange The Company also enters into foreign exchange contracts with customers to accommodate their need to convert certain foreign currencies into 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, 2021 and 2020, there were no outstanding contracts or agreements related to foreign currency. If there were foreign currency contracts outstanding at December 31, 2021 and 2020, 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 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, 2021 and 2020, the Company had derivative financial instruments outstanding with notional amounts totaling $205.0 million and $149.0 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 gain of $1.2 million at December 31, 2021 compared to a gain of 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. (Dollars in thousands) 2021 2020 Mortgage loan pipeline $ 264,000 $ 510,730 Expected closures 233,265 411,273 Fair value of mortgage loan pipeline commitments 4,759 15,328 Forward sales commitments 324,000 528,500 Fair value of forward commitments (21) (4,311) |
Loan Servicing, Mortgage Origin
Loan Servicing, Mortgage Origination, and Loans Held for Sale | 12 Months Ended |
Dec. 31, 2021 | |
Loan Servicing, Mortgage Origination, and Loans Held for Sale | |
Loan Servicing, Mortgage Origination, and Loans Held for Sale | Note 29—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 $6.1 billion and $5.1 billion at December 31, 2021 and 2020, respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts and disbursing payments to investors. The amounts of contractually specified servicing fees earned by the Company during the years ended December 31, 2021 and 2020 were $14.1 million and $9.8 million, respectively. Servicing fees are recorded in mortgage banking income in the Company’s consolidated statements of income. At December 31, 2021 and 2020, MSRs were $65.6 million and $43.8 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, 2021 and 2020 were gain of $9.9 million and loss of $7.4 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) 2021 2020 2019 Increase (decrease) in fair value of MSRs $ 9,930 $ (7,421) $ (6,976) Decay of MSRs (14,863) (8,793) (4,589) Gain (loss) related to derivatives (4,892) 10,177 3,967 Net effect on statements of income $ (9,825) $ (6,037) $ (7,598) 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 25 — The characteristics and sensitivity analysis of the MSRs are included in the following table. December 31, (Dollars in thousands) 2021 2020 Composition of residential loans serviced for others Fixed-rate mortgage loans 99.9 % 99.9 % Adjustable-rate mortgage loans 0.1 % 0.1 % Total 100.0 % 100.0 % Weighted average life 7.35 years 6.10 years Constant Prepayment rate (CPR) 8.4 % 12.3 % Weighted average discount rate 9.0 % 9.0 % Effect on fair value due to change in interest rates 25 basis point increase $ 3,961 $ 2,744 50 basis point increase 7,261 5,520 25 basis point decrease (4,371) (2,497) 50 basis point decrease (8,966) (4,114) 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 $29.6 million and $26.6 million, respectively, at December 31, 2021 and 2020. Whole loan sales were $3.1 billion and $3.2 billion, respectively, for the years ended December 31, 2021 and 2020, of which $2.4 billion and $2.7 billion, respectively, or 76.8% and 85.1%, respectively, 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, 2021, loans held for sale were $191.7 million, compared with $290.5 million at December 31, 2020. |
Investments in Qualified Afford
Investments in Qualified Affordable Housing Projects | 12 Months Ended |
Dec. 31, 2021 | |
Investments in Qualified Affordable Housing Projects | |
Investments in Qualified Affordable Housing Projects | Note 30—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, 2021, tax credits and other tax benefits of $13.7 million and amortization of $9.9 million were recorded. For the year ended December 31, 2020, the Company recorded tax credits and other tax benefits of $11.2 million and amortization of $12.9 million. At December 31, 2021 and 2020, the Company’s carrying value of QAHPs was $99.5 million and $105.6 million, respectively, with an original investment of $140.8 million and $137.1 million respectively. The Company has $15.6 million and $42.7 million in remaining funding obligations related to these QAHPs recorded in liabilities at December 31, 2021 and 2020, 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, 2021 | |
Subsequent Events | |
Subsequent Events | Note 31—Subsequent Events On January 24, 2022, the Company announced the declaration of a quarterly cash dividend on its common stock at $0.49 per share. The dividend was paid on February 18, 2022 to shareholders of record as of February 11, 2022. On February 11, 2022, the Federal Reserve Board approved SouthState’s application with respect to the previously announced merger between SouthState and Atlantic Capital pursuant to the Agreement and Plan of Merger, dated as of July 22, 2021, by and between SouthState and Atlantic Capital. We previously received approval from the OCC on October 12, 2021 and approval from Atlantic Capital’s shareholders on November 16, 2021. All required regulatory approvals to complete the merger and the merger of the respective bank subsidiaries of SouthState and Atlantic Capital have now been received. The transaction is expected to close the first quarter of 2022. As of February 23, 2022, the Company repurchased an additional 582,239 shares of the Company’s common stock pursuant to the 2021 Stock Repurchase Plan at a weighted average price of $85.55 per share after December 31, 2021. Total stock repurchases to date equal 2,400,180 shares at a weighted average price of $81.73 per share. The Company may repurchase up to an additional 1.1 million shares of common stock under the 2021 Stock Repurchase Plan. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Nature of operations | Nature of Operations SouthState Corporation is a financial holding company headquartered in Winter Haven, Florida, and was incorporated under the laws of South Carolina in 1985. We provide a wide range of banking services and products to our customers through our Bank. The Bank operates SouthState Advisory, Inc., a wholly owned registered investment advisor. The Bank also operates Duncan-Williams, Inc. (“Duncan-Williams”), which it acquired on February 1, 2021. Duncan-Williams is a registered broker-dealer, headquartered in Memphis, Tennessee, that serves primarily institutional clients across the U.S. in the fixed income business. The Bank also owns CBI Holding Company, LLC (“CBI”), which in turn owns Corporate Billing, LLC (“Corporate Billing”), a transaction-based finance company headquartered in Decatur, Alabama that provides factoring, invoicing, collection and accounts receivable management services to transportation companies and automotive parts and service providers nationwide. The holding company owns SSB Insurance Corp., a captive insurance subsidiary pursuant to Section 831(b) of the U.S. Tax Code. R4ALL, Inc., the holding company’s subsidiary that managed a troubled loan purchased from the Bank, dissolved effective October 29, 2021. The Company also operates a correspondent banking division within the national bank subsidiary, of which the majority of its bond salesmen, traders and operational personnel are housed in facilities located in Birmingham, Alabama and Atlanta, Georgia. The Bank provides general banking services within a six (6) state footprint in Alabama, Florida, Georgia, North Carolina, South Carolina and Virginia.. The accounting and reporting policies of the Company and its consolidated subsidiary conform to accounting principles generally accepted in the United States of America (‘U.S. GAAP”). There are 13 unconsolidated subsidiaries of the Company that were established for the purpose of issuing in the aggregate approximately $118.6 million of trust preferred securities at December 31, 2021. During 2021, seven unconsolidated subsidiaries of the Company, approximately $39.9 million of trust preferred securities in the aggregate, were dissolved as the Company redeemed the trust preferred debt. Unless otherwise mentioned or unless the context requires otherwise, references herein to "SouthState," the "Company" "we," "us," "our" or similar references mean SouthState Corporation and its consolidated subsidiaries. References to the “Bank” means SouthState Bank, National Association. |
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 Bank subsidiary, provides a broad range of financial services to individuals and companies in South Carolina, North Carolina, Florida, Alabama, Georgia and Virginia. These services include demand, time and savings deposits; lending and credit card servicing; ATM processing; mortgage banking services; correspondent 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 credit losses for loans and investment securities held to maturity, 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 impairment of investment securities, goodwill impairment tests and valuation of deferred tax assets. In connection with the determination of the allowance for credit 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 models based on macroeconomic factors and forecasts. Management believes that the allowance for credit 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 forecasts. In addition, regulatory agencies, as an integral part of the examination process, periodically review the banking subsidiary’s allowance for credit 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 Bank subsidiary grants agribusiness, commercial, and residential loans to customers throughout South Carolina, North Carolina, Florida, Alabama, 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, Florida, Alabama, 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 Tier 1 capital plus regulatory adjusted allowance for credit losses of the Company, or $860.6 million at December 31, 2021. Based on this criteria, we had seven such credit concentrations at December 31, 2021, including loans on hotels and motels of $892.6 million, loans to lessors of nonresidential buildings (except mini-warehouses) of $4.7 billion, loans secured by owner occupied office buildings (including medical office buildings) of $1.8 billion, loans secured by owner occupied nonresidential buildings (excluding office buildings) of $1.7 billion, loans to lessors of residential buildings (investment properties and multi-family) of $1.3 billion, loans secured by 1 st st billion. 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 ACL 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 including restricted pledged cash, 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. When the Company enters into such repurchase agreements, the securities purchased under agreements to resell generally consist of U.S. government-sponsored entities and agency mortgage- backed securities. The Company may elect to use other asset classes at its discretion. It is the Company’s practice 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, 2021. |
Trading Securities | Trading Securities Through its Correspondent Banking Department and its wholly owned broker dealer Duncan-Williams Inc., the Company purchases trading securities and subsequently sells them to their customers to take advantage of market opportunities, when presented, for short-term revenue gains. Securities purchased for this portfolio are primarily municipals, treasuries and mortgage-backed agency securities and are held for short periods of time. This portfolio is carried at fair value and realized and unrealized gains and losses are included in trading securities revenue, a component of Correspondent Banking and Capital Market Income in our Consolidated Statements of Net Income. |
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. Gains and losses realized on sales of securities available for sale are determined using the specific identification method. Management no longer evaluates securities for other-than-temporary impairment, otherwise referred to herein as Other Than Temporary Impairment (“OTTI”), as ASC Subtopic 326-30, Financial Instruments—Credit Losses—Available for sale Debt Securities , changes the accounting for recognizing impairment on available for sale debt securities. Each quarter Management evaluates impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value. Management considers the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security’s fair value and historical loss information for financial assets secured with similar collateral among other factors. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby Management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component would be recognized through the Provision for Credit Losses in the Consolidated Statements of Income. (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 and Federal Reserve Bank (“FRB”) 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 consist 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 The Company sells residential mortgages to government sponsored entities (“GSEs “) and mortgage and third-party investors, who may issue securities backed by pools of such loans. The Company retains no beneficial interests in these sales, but may retain the servicing rights for the loans sold. The Company is obligated to subsequently repurchase a loan if the purchaser discovers a representation or warranty violation such as noncompliance with eligibility or servicing requirements, or customer fraud, that should have been identified in a loan file review. Mortgage loans held for sale are accounted for at fair value on an individual loan basis. Estimated fair value is determined on the basis of existing forward commitments, or the current market value of similar loans. Changes in the fair value, and realized gains and losses on the sales of mortgage loans, are reported in Mortgage Banking Income, a component of Noninterest Income in our Consolidated Statements of Income. |
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 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 evaluated individually for loss when it is on nonaccrual and has a net book balance over $1 million. Large pools of homogeneous loans are collectively evaluated for loss and reserved at the pool level. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as nonaccrual, provided that Management expects to collect all amounts due, including interest accrued at the contractual interest rate for the period of delay. |
Troubled Debt Restructurings ("TDRs") | Troubled Debt Restructurings (“TDRs”) The Bank measures expected credit losses over the contractual term of a loan. When determining the contractual term, the Company considers expected prepayments but is precluded from considering expected extensions, renewals, or modifications, unless the Company reasonably expects it will execute a TDR with a borrower. In the event of a reasonably-expected TDR, the Company factors the reasonably-expected TDR into the current expected credit losses estimate. For consumer loans, the point at which a TDR is reasonably expected is when the Company approves the borrower’s application for a modification (i.e., the borrower qualifies for the TDR) or when the Credit Administration department approves loan concessions on substandard loans. For commercial loans, the point at which a TDR is reasonably expected is when the Company approves the loan for modification or when the Credit Administration department approves loan concessions on substandard loans. The Company uses a discounted cash flow methodology for a TDR to calculate the effect of the concession provided to the borrower within the allowance for credit losses. |
Allowance for Credit Losses ("ACL") | Allowance for Credit Losses (“ACL”) On January 1, 2020, we adopted the requirements of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , sometimes referred to herein as ASU 2016-13. Topic 326 was subsequently amended by ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses Financial Instruments-Credit Losses Financial Instruments-Credit Losses Derivatives and Hedging Financial Instruments . This standard applies to all financial assets measured at amortized cost and off balance sheet credit exposures, including loans, investment securities and unfunded commitments. We applied the standard’s provisions using the modified retrospective method as a cumulative-effect adjustment to retained earnings as of January 1, 2020. With this transition method, we did not have to restate comparative prior periods presented in the financial statements related to Topic 326, but will present comparative prior periods disclosures using the previous accounting guidance for the allowance for loan losses. 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. ACL – Investment Securities Management uses a systematic methodology to determine its ACL for investment securities held to maturity. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the held to maturity portfolio. Management considers the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the portfolio. The Company’s estimate of its ACL involves a high degree of judgment; therefore, Management’s process for determining expected credit losses may result in a range of expected credit losses. Management monitors the held to maturity portfolio to determine whether a valuation account will need to be recorded. As of December 31, 2021, the Company had $1.8 billion of held to maturity securities and no related valuation account. As of December 31, 2021, the held to maturity portfolio consisted of U.S. Government Agency, U.S. Government Agency Residential and Commercial Mortgage-backed securities, and Small Business Administration loan-backed securities. Management does not believe that a fair value below amortized cost is due to credit related factors. Management no longer evaluates available for sale securities for other-than-temporary impairment, otherwise referred to herein as OTTI, as ASC Subtopic 326-30, Financial Instruments—Credit Losses—Available for sale Debt Securities , changes the accounting for recognizing impairment on available for sale debt securities. Each quarter Management evaluates impairment where there has been a decline in fair value below the amortized cost basis of an available for sale security to determine whether there is a credit loss associated with the decline in fair value. Management considers the nature of the collateral, potential future changes in collateral values, default rates, delinquency rates, third-party guarantees, credit ratings, interest rate changes since purchase, volatility of the security’s fair value and historical loss information for financial assets secured with similar collateral among other factors. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby Management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component would be recognized through the provision for credit losses in the Statements of Income. Management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the investment securities and does not record an allowance for credit losses on accrued interest receivable. As of December 31, 2021 and December 31, 2020, the accrued interest receivables for investment securities recorded in Other Assets were $19.2 million and $13.1 million, respectively. ACL – Loans The ACL for loans held for investment reflects Management’s estimate of losses that will result from the inability of our borrowers to make required loan payments. The Company established the incremental increase in the ACL at adoption through equity and subsequent adjustments through a provision for or recovery of credit losses recorded to earnings. The Company records loans charged off against the ACL and subsequent recoveries, if any, increase the ACL when they are recognized. Management uses systematic methodologies to determine its ACL for loans held for investment and certain off-balance-sheet credit exposures. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the loan portfolio. Management considers the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the loan portfolio. The Company’s estimate of its ACL involves a high degree of judgment; therefore, Management’s process for determining expected credit losses may result in a range of expected credit losses. The Company’s ACL recorded in the balance sheet reflects Management’s best estimate within the range of expected credit losses. The Company recognizes in net income the amount needed to adjust the ACL for Management’s current estimate of expected credit losses. The Company’s ACL is calculated using collectively evaluated and individually evaluated loans. The allowance for credit losses is measured on a collective pool basis when similar risk characteristics exist. Loans with similar risk characteristics are grouped into homogenous segments, or pools, for analysis. The Discounted Cash Flow (“DCF”) method is utilized for each loan in a pool, and the results are aggregated at the pool level. A periodic tendency to default and absolute loss given default are applied to a projective model of the loan’s cash flow while considering prepayment and principal curtailment effects. The analysis produces expected cash flows for each instrument in the pool by pairing loan-level term information (e.g., maturity date, payment amount, interest rate, etc.) with top-down pool assumptions (e.g., default rates and prepayment speeds). The Company has identified the following portfolio segments: Owner-Occupied Commercial Real Estate, Non Owner-Occupied Commercial Real Estate, Multifamily, Municipal, Commercial and Industrial, Commercial Construction and Land Development, Residential Construction, Residential Senior Mortgage, Residential Junior Mortgage, Revolving Mortgage, and Consumer and Other. In determining the proper level of the ACL, Management has determined that the loss experience of the Bank provides the best basis for its assessment of expected credit losses. It therefore utilized its own historical credit loss experience by each loan segment over an economic cycle, while excluding loss experience from certain acquired institutions (i.e., failed banks). For most of the segment models for collectively evaluated loans, the Company incorporated two or more macroeconomic drivers using a statistical regression modeling methodology. Management considers forward-looking information in estimating expected credit losses. The Company subscribes to a third-party service which provides a quarterly macroeconomic baseline outlook and alternative scenarios for the United States economy. The baseline, along with the evaluation of alternative scenarios, is used by Management to determine the best estimate within the range of expected credit losses. Management has evaluated the appropriateness of the reasonable and supportable forecast scenarios and has made adjustments as needed. For the contractual term that extends beyond the reasonable and supportable forecast period, the Company reverts to the long term mean of historical factors within four quarters using a straight-line approach. The Company generally utilizes a four-quarter forecast and a four-quarter reversion period. Included in its systematic methodology to determine its ACL, Management considers the need to qualitatively adjust expected credit losses for information not already captured in the loss estimation process. These qualitative adjustments either increase or decrease the quantitative model estimation (i.e., formulaic model results). Each period the Company considers qualitative factors that are relevant within the qualitative framework that includes the following: 1) Lending Policy; 2) Economic conditions not captured in models; 3) Volume and Mix of Loan Portfolio; 4) Past Due Trends; 5) Concentration Risk; 6) External Factors; and 7) Model Limitations. When a loan no longer shares similar risk characteristics with its segment, the asset is assessed to determine whether it should be included in another pool or should be individually evaluated. The Company’s threshold for individually-evaluated loans includes all non-accrual loans with a net book balance in excess of $1.0 million. Management will monitor the credit environment and make adjustments to this threshold in the future if warranted. Based on the threshold above, consumer financial assets will generally remain in pools unless they meet the dollar threshold. The expected credit losses on individually-evaluated loans will be estimated based on discounted cash flow analysis unless the loan meets the criteria for use of the fair value of collateral, either by virtue of an expected foreclosure or through meeting the definition of collateral-dependent. Financial assets that have been individually evaluated can be returned to a pool for purposes of estimating the expected credit loss insofar as their credit profile improves and that the repayment terms were not considered to be unique to the asset. Management measures expected credit losses over the contractual term of a loan. When determining the contractual term, the Company considers expected prepayments but is precluded from considering expected extensions, renewals, or modifications, unless the Company reasonably expects it will execute a TDR with a borrower. In the event of a reasonably-expected TDR, the Company factors the reasonably-expected TDR into the current expected credit losses estimate. For consumer loans, the point at which a TDR is reasonably expected is when the Company approves the borrower’s application for a modification (i.e., the borrower qualifies for the TDR) or when the Credit Administration department approves loan concessions on substandard loans. For commercial loans, the point at which a TDR is reasonably expected is when the Company approves the loan for modification or when the Credit Administration department approves loan concessions on substandard loans. The Company uses a discounted cash flow methodology for a TDR to calculate the effect of the concession provided to the borrower within the ACL. A restructuring that results in only a delay in payments that is insignificant is not considered an economic concession. In accordance with the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, the Company implemented loan modification programs in response to the COVID-19 pandemic in order to provide borrowers with flexibility with respect to repayment terms. The Company’s payment relief assistance includes forbearance, deferrals, extension and re-aging programs, along with certain other modification strategies. The Company elected the accounting policy in the CARES Act to not apply TDR accounting to loans modified for borrowers impacted by the COVID-19 pandemic if the concession met the criteria as defined under the CARES Act. For purchased credit-deteriorated, otherwise referred to herein as PCD, assets are defined as acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. The Company records acquired PCD loans by adding the expected credit losses (i.e., allowance for credit losses) to the purchase price of the financial assets rather than recording through the provision for credit losses in the income statement. The expected credit loss, as of the acquisition day, of a PCD loan is added to the allowance for credit losses. The non-credit discount or premium is the difference between the unpaid principal balance and the amortized cost basis as of the acquisition date. Subsequent to the acquisition date, the change in the ACL on PCD loans is recognized through the Provision for Credit Losses in the Consolidated Statements of Income. The non-credit discount or premium is accreted or amortized, respectively, into interest income over the remaining life of the PCD loan on a level-yield basis. In accordance with the transition requirements within the standard, the Company’s acquired credit-impaired loans (i.e., ACI or Purchased Credit Impaired) were treated as PCD loans. The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Therefore, Management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the portfolio and does not record an allowance for credit losses on accrued interest receivable. As of December 31, 2021 and December 31, 2020, the accrued interest receivables for loans recorded in Other Assets were $70.6 million and $93.9 million, respectively. The Company has a variety of assets that have a component that qualifies as an off-balance sheet exposure. These primarily include undrawn portions of revolving lines of credit and standby letters of credit. The expected losses associated with these exposures within the unfunded portion of the expected credit loss will be recorded as a liability on the balance sheet. Management has determined that a majority of the Company’s off-balance-sheet credit exposures are not unconditionally cancellable. Management completes funding studies based on historical data to estimate the percentage of unfunded loan commitments that will ultimately be funded to calculate the reserve for unfunded commitments. Management applies this funding rate, along with the loss factor rate determined for each pooled loan segment, to unfunded loan commitments, excluding unconditionally cancellable exposures and letters of credit, to arrive at the reserve for unfunded loan commitments. As of December 31, 2021 and December 31, 2020, the liability recorded for expected credit losses on unfunded commitments was $30.5 million and $43.4 million, respectively. The current adjustment to the ACL for unfunded commitments is recognized through the Provision for Credit Losses in the Consolidated Statements of Income. |
Other Real Estate Owned and Bank Property Held For Sale | Other Real Estate Owned and Bank Property Held For Sale Other real estate owned (“OREO”) consists of properties obtained through foreclosure or through a deed in lieu of foreclosure in satisfaction of loans. Prior to the merger with CSFL, the Company classified former branch sites as held for sale OREO. During the second quarter of 2020 and with the merger with CSFL, the Company elected to reclassify these assets as bank property held for sale and report on a separate line on the Consolidated Balance Sheet. Both OREO and bank property held for sale are recorded at the lower of cost or fair value and the fair value was 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, for OREO, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the ACL. At the time a bank property is no longer in service and is moved to held for sale, any excess of the current book value over fair value is recorded as an expense in the Consolidated Statements of Income. Subsequent adjustments to this value are described in the following paragraph. The Company reports subsequent declines in the fair value of OREO and bank properties held for sale below the new cost basis through valuation adjustments. Significant judgments and complex estimates are required in estimating the fair value of these properties, 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 current valuations used to determine the fair value of these properties. Management reviews the value of these properties periodically 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 Noninterest Expense in the Consolidated Statements of Income. Expenses related to bank property held for sale, as well as gains or losses on sales and any subsequent adjustments to the value, are recorded Other Expenses, a component of Noninterest Expense in the Consolidated Statements of Income. |
Business Combinations and Method of Accounting for Loans Acquired | B usiness Combinations and Method of Accounting for Loans Acquired The Company accounts for its acquisitions under FASB ASC Topic 805, Business Combinations Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , on January 1, 2020 which now requires us to record purchased financial assets with credit deterioration (PCD assets), defined as a more-than-insignificant deterioration in credit quality since origination or issuance, at the purchase price plus the allowance for credit losses expected at the time of acquisition. Under this method, there is no credit loss expense affecting net income on acquisition of PCD assets. Changes in estimates of expected credit losses after acquisition are recognized as provision for credit losses (or recovery for credit losses) in subsequent periods as they arise. Any non-credit discount or premium resulting from acquiring a pool of purchased financial assets with credit deterioration shall be allocated to each individual asset. At the acquisition date, the initial allowance for credit losses determined on a collective basis shall be allocated to individual assets to appropriately allocate any non-credit discount or premium. The non-credit discount or premium, after the adjustment for the allowance for credit losses, shall be accreted to interest income using the interest method based on the effective interest rate determined after the adjustment for credit losses at the adoption date. A purchased financial asset that does not qualify as a PCD asset is accounted for similar to an originated financial asset. Generally, this means that an entity recognizes the allowance for credit losses for non-PCD assets through net income at the time of acquisition. In addition, both the credit discount and non-credit discount or premium resulting from acquiring a pool of purchased financial assets that do not qualify as PCD assets shall be allocated to each individual asset. This combined discount or premium shall be accreted to interest income using the effective yield method. For further discussion of our loan accounting and acquisitions, see Note 2—Mergers and Acquisitions, Note 4—Loans and Note 5—Allowance for Credit Losses to the audited condensed consolidated financial statements. |
Premises and Equipment | 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 | 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) Land Easement Practical Expedient for Transition Leases 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. 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. The Company 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. The Company 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 at adoption. Two finance leases were acquired through the merger with CSFL, though these leases are immaterial. 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. The Company also considered the term of the borrowings as they relate to the terms of the leases. The adoption of the new standard had a material impact on our consolidated balance sheet, with the recording of 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. As of December 31, 2021 and 2020, we had ROU assets of 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 and client list 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. 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 in a business combination. At December 31, 2021 and billion. 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. In January 2017, the FASB issued ASU No. 2017-04, which simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on Step 1 of the previous accounting guidance’s two-step impairment test under ASC Topic 350. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The new standard eliminates the requirement to calculate a goodwill impairment charge using Step 2 which involved calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The standard does not change the guidance on completing Step 1 of the goodwill impairment test. An entity will still be able to perform today’s optional qualitative goodwill impairment assessment before determining whether to proceed to the quantitative step of determining whether the reporting unit’s carrying amount exceeds it fair value. The Company evaluated the carrying value of goodwill as of October 31, 2021, our annual test date, considering the effects of COVID-19 and other market condition and determined that no impairment charge was necessary. Core deposit intangibles and client list intangibles consist primarily of amortizing assets established during the acquisition of other banks. This includes whole bank acquisitions and the acquisition of certain assets and liabilities from other financial institutions. an accelerated basis method which reasonably approximates the anticipated benefit stream from the accounts. The estimated useful lives are periodically reviewed for reasonableness. Client list intangibles, included in Core Deposit and Other Intangibles in the consolidated Balance Sheets, 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 fixed rate conforming mortgage loans as securities to investors issued through Fannie Mae and Freddie Mac and sold to third-party investors or sells them to satisfy cash forward mandatory commitments to Fannie Mae and Freddie Mac. 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, correspondent banking activities including revenue from the sale of fixed income securities and fees from hedging services, 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. The Company 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. The Company restated prior periods for this reclassification. For years 2021, 2020 and 2019, gross interchange and debit card transaction fees totaled million, respectively. On a net basis, the Company reported 31, 2021, 2020, and 2019. 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, the Company maintains contracts to provide services, primarily for investment advisory and/or custody of assets. Through the Company’s wholly owned subsidiaries, the Bank, and SouthState Advisory, Inc., the Company contracts with its customers to perform IRA, Trust, and/or Custody and Agency advisory services. 31, 2021, 2020 and 2019. The Bank contracts with its customers to perform deposit account services. Total revenue recognized from these contracts with customers is 31, 2021, 2020 and 2019. 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 - The Company has disaggregated revenue according to the timing of the transfer of service. Total revenue derived from contracts in which services are transferred at a point in time was 31, 2021, 2020 and 2019. Total revenue derived from contracts in which services are transferred over time was 31, 2021, 2020 and 2019. Revenue is recognized as the services 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 SouthState 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. The Company has adopted the right-to-invoice practical expedient for trust management contracts through SouthState 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-8). |
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 , which requires the Company to recognize the funded status in its statement of financial position. See Note 17 — — retirement benefit plans. The Company terminated its defined benefit pension plan in 2019. The expected costs of the post retirement benefit plans are being expensed over the period that employees provide service. 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 , in which the fair value measurement method is used to estimate the fair value of the equity instruments, based on the share price and other measurement assumptions at the grant date. See Note 19 — |
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, loans, available for sale securities, allowance for credit losses, write downs of OREO properties, bank properties held for sale, 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 in the Consolidated Statements of Income. 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, 2021 and 2020, 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 Alabama, California, Colorado, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Texas, New York, Virginia, and in the city of New York City. Generally, the Company’s federal and state income tax returns are no longer subject to examination by taxing authorities for years prior to 2018. |
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 vested shares subject to a holding period), 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, 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 loan swaps which are 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. Fair value hedges convert the fixed rate to a floating rate (see Note 28—Derivative Financial Instruments). For discussion related to Reference Rate Reform, please refer to the caption “Issued But Not Yet Adopted Accounting Standards” within this Note 1—Summary of Significant Accounting Policies. 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 28—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 28—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 31—Subsequent Events for further information. |
Recent Accounting and Regulatory Pronouncements | Recent Accounting and Regulatory Pronouncements Accounting Standards Adopted In February 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-02, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section of Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) . This update adds the content of SEC Staff Accounting Bulletin (“SAB”) No. 119 to the FASB Codification. SAB No.119 provides interpretive guidance on methodologies and supporting documentation for measuring credit losses, with a focus on the documentation the staff would normally expect registrants engaged in lending transactions to prepare and maintain to support estimates of current expected credit losses for loan transactions. The ASU also updates the SEC section of the FASB Codification for the delay in the effective date of Topic 842 for public business entities that otherwise would not meet the definition of a public business entity except for a requirement to include its financial information in another entity’s filing with the SEC. The clarification related to SAB No. 119 was adopted in the first quarter of 2020 when ASU 2016-13 was adopted. See ASU 2016-13 below for overall effect of Topic 326 Financial Instruments-Credit Losses on our consolidated financial statements. The change in the effective date for ASU 2016-02 – Leases did not affect the Company in that we adopted the standard in 2019. 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. Some of the simplification items included are 1) simplification for intraperiod tax allocations where entities will determine the tax effect of pre-tax income or loss from continuing operations without consideration of the tax effect of other items that are not included in continuing operations, 2) simplification for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year allowing an entity to record a benefit for year-to-date loss in excess of its forecasted loss, and 3) simplify the accounting for income taxes by requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax. This guidance is effective for interim and annual reporting periods beginning after December 15, 2020. Early adoption is permitted. 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. The Company adopted ASU No. 2019-12 but it did not have a material impact 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 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. The Company adopted ASU No. 2018-14 but it did not 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 clarification was adopted in the first quarter of 2020 when the overall standard was adopted. See ASU 2016-13 below for overall effect of Topic 326 Financial Instruments-Credit Losses In April 2019, the FASB issued ASU No. 2019-05, Targeted Transition Relief (Topic 326 – Financial Instruments-Credit Losses). Subtopic 326-20, Financial Instruments—Credit Losses— Measured at Amortized Cost , with an option to irrevocably elect the fair value option in Subtopic 825-10 applied on an instrument-by-instrument basis for eligible instruments, upon adoption of Topic 326. The fair value option election does not apply to held to maturity debt securities. An entity that elects the fair value option should subsequently apply the guidance in Subtopics 820-10, Fair Value Measurement—Overall, and 825-10. This update was adopted in the first quarter of 2020 when the overall standard was adopted. See ASU 2016-13 below for overall effect of Topic 326 Financial Instruments-Credit Losses 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 adopted in the second quarter of 2019 and did not have a material impact on our consolidated financial statements. The clarifications related to ASU 2016-13 were adopted in the first quarter of 2020 when the overall standard was adopted. See ASU 2016-13 below for overall effect of Topic 326 Financial Instruments-Credit Losses 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 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 was effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. 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. This update did not 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 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 consists 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 was effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those years. Based on effects of the COVID-19 pandemic on the economy and on our stock price, the Company evaluated its goodwill on a quarterly basis in 2020 per ASU 2017-04 and has reverted to an annual impairment test cycle. The most recent analysis as of October 31, 2021 determined there was impairment of goodwill or other intangibles. The Company will continue to monitor if a triggering event occurs that requires goodwill to be evaluated before the nest annual impairment test date. 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 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 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. See Note 1 Summary of Significant Account Policies – Allowance for Credit Losses for further discussion. We adopted the new standard as of January 1, 2020. This standard did not have a material impact on our investment securities portfolio at implementation. Related to the implementation of ASU 2016-13, the Company recorded additional ACL for loans of million. See table below for impact of ASU 2016-13 on the Company’s consolidated balance sheet. See Note 1—Summary of Significant Accounting Policies for further discussion. January 1, 2020 As Reported Under Pre-ASC 326 Impact of ASC 326 Dollars in thousands ASC 326 Adoption Adoption Assets: Allowance for Credit Losses on Debt Securities Investment Securities - Available-for-Sale $ 1,956,047 $ 1,956,047 $— A Investment Securities - Held-to-Maturity — — — A Loans Non-Acquired Loans 9,252,831 9,252,831 — Acquired Loans 2,118,940 2,117,209 1,723 B Allowance for Credit Losses on Loans (111,365) (56,927) (54,438) C Deferred Tax Asset 43,955 31,316 12,639 D Accrued Interest Receivable - Loans 30,009 28,332 1,677 B Liabilities: Reserve for Loan Losses - Unfunded Commitments 6,756 335 6,421 E Equity: Retained Earnings 635,075 679,895 (44,820) F A – The Company did not have any held-to maturity securities as of January 1, 2020. Per our analysis we determined that no ACL was necessary for investment securities – available for sale. B – Accrued interest receivable from acquired credit impaired loans of $1,677 was reclassified to other assets and was offset by the reclass of the grossed up credit discount on acquired credit impaired loans of $3,408 that was moved to the ACL for the purchased credit deteriorated loans. C – This is the calculated adjustment to the ACL related to the adoption of ASC 326. Additional reserve related to non-acquired loans was $34,049 , to acquired loans was $16,981 and to purchased credit deteriorated loans was $3,408 . D – This is the effect of deferred tax assets related to the adjustment to the ACL from the adoption of ASC 326 using a 22% tax rate. E – This is the adjustment to the reserve for unfunded commitments related to the adoption of ASC 326. F – This is the net adjustment to retained earnings related to the adoption of ASC 326. Issued But Not Yet Adopted Accounting Standards In March 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848 – Facilitation of the Effects of Reference Rate Reform on Financial Reporting and subsequently expanded the scope of ASU No. 2020-04 with the issuance of ASU No. 2021-01 reference rate reform if certain criteria are met. The main provisions for contract modifications include optional relief by allowing the modification as a continuation of the existing contract without additional analysis and other optional expedients regarding embedded features. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that will be discontinued because of reference rate reform. The amendments in this update were effective for all entities as of March 12, 2020 and may be applied through December 31, 2022. An entity may elect to apply the amendments in this update to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020 and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. An entity may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected, the amendments in this update must be applied prospectively for all eligible contract modifications and hedging relationships. The Company has established a LIBOR Committee and various subcommittees which have evaluated the impact of adopting and implementing ASU 2020-04 on the consolidated financial statements including the evaluation of all of its contracts, hedging relationships and other transactions that will be affected by reference rates that are being discontinued. The cross-functional LIBOR Committee and subcommittees have 1) assessed the Company's current exposure to LIBOR indexed instruments and the data, systems and processes that will be impacted; 2) established a detailed implementation plan; and 3) developed a formal governance structure for the transition. The Company is in the process of developing and implementing various proactive steps to facilitate the transition on behalf of customers, which include the adoption and ongoing implementation of fallback provisions that provide for the determination of replacement rates for LIBOR-linked financial products; the adoption of new products linked to alternative reference rates, such as adjustable-rate mortgages, consistent with guidance provided by the U.S. regulators, the Alternative Reference Rates Committee, and government sponsored entities; the cessation of quoting LIBOR and originating new products linked to LIBOR by December 31, 2021; and the selection of SOFR indices as the replacement indices, and successful completion of systems testing using the SOFR replacement indices. As a result of the implementation plan, the Company discontinued quoting LIBOR on September 30, 2021 and discontinued originating new products linked to LIBOR on December 31, 2021. The Company continues to evaluate its financial and operational infrastructure in its effort to transition all financial and strategic processes, systems, and models to reference rates other than LIBOR. The Company is in the process of developing and implementing processes to educate all client-facing associates and coordinate communications with customers regarding the transition. In addition, the Company expects to adopt the LIBOR transition relief allowed under ASU No. 2020-04. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of impact of ASU | January 1, 2020 As Reported Under Pre-ASC 326 Impact of ASC 326 Dollars in thousands ASC 326 Adoption Adoption Assets: Allowance for Credit Losses on Debt Securities Investment Securities - Available-for-Sale $ 1,956,047 $ 1,956,047 $— A Investment Securities - Held-to-Maturity — — — A Loans Non-Acquired Loans 9,252,831 9,252,831 — Acquired Loans 2,118,940 2,117,209 1,723 B Allowance for Credit Losses on Loans (111,365) (56,927) (54,438) C Deferred Tax Asset 43,955 31,316 12,639 D Accrued Interest Receivable - Loans 30,009 28,332 1,677 B Liabilities: Reserve for Loan Losses - Unfunded Commitments 6,756 335 6,421 E Equity: Retained Earnings 635,075 679,895 (44,820) F A – The Company did not have any held-to maturity securities as of January 1, 2020. Per our analysis we determined that no ACL was necessary for investment securities – available for sale. B – Accrued interest receivable from acquired credit impaired loans of $1,677 was reclassified to other assets and was offset by the reclass of the grossed up credit discount on acquired credit impaired loans of $3,408 that was moved to the ACL for the purchased credit deteriorated loans. C – This is the calculated adjustment to the ACL related to the adoption of ASC 326. Additional reserve related to non-acquired loans was $34,049 , to acquired loans was $16,981 and to purchased credit deteriorated loans was $3,408 . D – This is the effect of deferred tax assets related to the adjustment to the ACL from the adoption of ASC 326 using a 22% tax rate. E – This is the adjustment to the reserve for unfunded commitments related to the adoption of ASC 326. F – This is the net adjustment to retained earnings related to the adoption of ASC 326. |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Mergers and Acquisitions | |
Schedule of proforma information | Pro Forma Year Ended (Dollars in thousands) December 31, 2020 Total revenues (net interest income plus noninterest income) $ 1,522,434 Net interest income $ 1,061,233 Net adjusted income available to the common shareholder $ 329,827 EPS - basic $ 4.66 EPS - diluted $ 4.64 |
CSFL | |
Mergers and Acquisitions | |
Schedule of assets acquired, liabilities assumed, and fair value of total consideration transferred | The CSFL 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 CSFL Adjustments Adjustments the Company Assets Cash and cash equivalents $ 2,566,450 $ — $ — $ 2,566,450 Investment securities 1,188,403 5,507 (a) — 1,193,910 Loans held for sale 453,578 — — 453,578 Loans, net of allowance and mark 12,969,091 (48,342) (b) 29,834 (b) 12,950,583 Premises and equipment 308,150 2,392 (c) 2,893 (c) 313,435 Intangible assets 1,294,211 (1,163,349) (d) 10,000 (d) 140,862 OREO and repossessed assets 10,849 (791) (e) (49) (e) 10,009 Bank owned life insurance 333,053 — — 333,053 Deferred tax asset 54,123 (8,681) (f) (7,820) (f) 37,622 Other assets 967,059 (604) (g) (1,069) (g) 965,386 Total assets $ 20,144,967 $ (1,213,868) $ 33,789 $ 18,964,888 Liabilities Deposits: Noninterest-bearing $ 5,291,443 $ — $ — $ 5,291,443 Interest-bearing 10,312,370 19,702 (h) — 10,332,072 Total deposits 15,603,813 19,702 — 15,623,515 Federal funds purchased and securities sold under agreements to repurchase 401,546 — — 401,546 Other borrowings 278,900 (7,401) (i) — 271,499 Other liabilities 977,725 (4,592) (j) 857 (j) 973,990 Total liabilities 17,261,984 7,709 857 17,270,550 Net identifiable assets acquired over (under) liabilities assumed 2,882,983 (1,221,577) 32,932 1,694,338 Goodwill — 600,483 (38,113) 562,370 Net assets acquired over liabilities assumed $ 2,882,983 $ (621,094) $ (5,181) $ 2,256,708 Consideration: SouthState Corporation common shares issued 37,271,069 Purchase price per share of the Company's common stock $ 60.27 Company common stock issued ($2,246,327) and cash exchanged for fractional shares ($74) $ 2,246,401 Stock option conversion 2,900 Restricted stock conversion 7,407 Fair value of total consideration transferred $ 2,256,708 (k) Explanation of fair value adjustments (a)— Represents the reversal of CSFL's existing fair value adjustments of $40.7 million and the adjustment to record securities at fair value (premium) totaling $46.2 million (includes reclassification of all securities held as HTM to AFS totaling $175.7 million). (b)— Represents approximately 2.04%, or $269.1 million, total mark of the loan portfolio including a 1.97%, or $259.7 million credit mark, based on a third-party valuation. Also, includes the reversal of CSFL's ending allowance for credit losses of million. Fair value was subsequently adjusted by (c)— Represents the MTM adjustment of $4.0 million on leased assets partially offset by the write-off of de minimis fixed assets of $1.6 million. Subsequently, the fair value on certain bank premises was adjusted by (d)— Represents approximately a 1.28% core deposit intangible, or $125.9 million from a third-party valuation. This amount is net of $84.9 million existing core deposit intangible and $1.2 billion of existing goodwill from CSFL’s prior transactions that was reversed. Approximately (e)— Represents the reversal of prior valuation reserves of $878,000 and recorded new valuation reserves of $1.7 million on both OREO and other repossessed assets. The fair value was subsequently adjusted based on gains and losses recognized from sales of OREO and other repossessed assets. (f)— Represents deferred tax assets related to fair value adjustments measured using an estimated tax rate of 22.0% . This includes an adjustment from the CSFL tax rate to our tax rate. The difference in tax rates relates to state income taxes. Additional deferred tax liability related to subsequent fair value adjustments identified and an updated estimated tax rate of 23.78% was approximately $7.8 million. (g)— Represents a valuation reserve of bank property held for sale of $4.4 million, a fair value adjustment of a lease receivable of $116,000 and a fair value adjustment of interest receivable of $501,000. These amounts are offset by positive fair value adjustment for investment in low income housing of $3.3 million. (h)— Represents estimated premium for fixed maturity time deposits of $20.2 million partially offset by the reversal of existing CSFL fair value adjustments related to time deposit marks from other merger transactions of $546,000. (i)— Represents the recording of a discount of $12.5 million on TRUPs from a third-party valuation partially offset by the reversal of the existing CSFL discount on TRUPs and other debt of $5.1 million. (j)— Represents the reversal of an existing $7.1 million unfunded commitment reserve at purchase date partially offset by a fair value adjustment to increase lease liabilities associated with leased facilities totaling $2.5 million. The discount rate applied to the bank owned life insurance split dollar liability was subsequently adjusted resulting in an increase in the other liability of $857,000 . (k)— The purchase price, or the fair value of total consideration transferred, decreased by $5.2 million to $2.9 million for stock options assumed and converted in the merger. The stock options assumed reflect their intrinsic value based upon a Black Sholes valuation. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Securities | |
Schedule of amortized cost and fair value of investment securities held to maturity | Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value December 31, 2021: U.S. Government agencies $ 112,913 $ — $ (2,627) $ 110,286 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,120,104 14 (24,278) 1,095,840 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 174,178 — (4,937) 169,241 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 350,116 304 (8,021) 342,399 Small Business Administration loan-backed securities 62,590 — (2,292) 60,298 $ 1,819,901 $ 318 $ (42,155) $ 1,778,064 December 31, 2020: U.S. Government agencies $ 25,000 $ 1 $ — $ 25,001 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 632,269 1,827 (1,032) 633,064 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 75,767 405 — 76,172 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 174,506 300 (91) 174,715 Small Business Administration loan-backed securities 48,000 231 — 48,231 $ 955,542 $ 2,764 $ (1,123) $ 957,183 |
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, 2021: U.S. Government agencies $ 98,882 $ — $ (1,765) $ 97,117 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,851,700 5,324 (25,985) 1,831,039 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 730,949 5,957 (10,911) 725,995 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,220,233 5,438 (18,430) 1,207,241 State and municipal obligations 798,211 16,697 (2,219) 812,689 Small Business Administration loan-backed securities 502,812 2,330 (4,479) 500,663 Corporate securities 18,509 234 (9) 18,734 $ 5,221,296 $ 35,980 $ (63,798) $ 5,193,478 December 31, 2020: U.S. Government agencies $ 29,882 $ 16 $ (642) $ 29,256 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,351,506 16,657 (1,031) 1,367,132 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 739,797 16,579 (825) 755,551 Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 229,219 10,939 (50) 240,108 State and municipal obligations 502,575 17,491 (27) 520,039 Small Business Administration loan-backed securities 401,496 4,978 (1,590) 404,884 Corporate securities 13,562 140 — 13,702 $ 3,268,037 $ 66,800 $ (4,165) $ 3,330,672 |
Schedule of amortized cost and carrying value of other investment securities | Carrying (Dollars in thousands) Value December 31, 2021: Federal Home Loan Bank stock $ 16,283 Federal Reserve Bank stock 129,716 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 11,006 $ 160,568 December 31, 2020: Federal Home Loan Bank stock $ 15,083 Federal Reserve Bank stock 129,871 Investment in unconsolidated subsidiaries 4,941 Other nonmarketable investment securities 10,548 $ 160,443 |
Schedule of amortized cost and fair value of debt and equity securities by contractual maturity | Securities Securities Held to Maturity Available for Sale Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ — $ — $ 7,263 $ 7,296 Due after one year through five years — — 132,157 133,418 Due after five years through ten years 140,439 135,931 920,768 919,669 Due after ten years 1,679,462 1,642,133 4,161,108 4,133,095 $ 1,819,901 $ 1,778,064 $ 5,221,296 $ 5,193,478 |
Schedule of information with respect to sales of available-for-sale securities | Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Securities Available for Sale: Sale proceeds $ 151,314 $ 100,754 $ 242,733 Gross realized gains 750 662 6,030 Gross realized losses (648) (612) (3,319) Net realized gain $ 102 $ 50 $ 2,711 |
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 Unrealized Fair Gross Unrealized Fair (Dollars in thousands) Losses Value Losses Value December 31, 2021: Securities Held to Maturity U.S. Government agencies $ 1,745 $ 86,168 $ 882 $ 24,118 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 18,768 868,327 5,510 184,819 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 4,937 169,240 — — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 4,902 154,963 3,119 75,450 Small Business Administration loan-backed securities 1,281 37,408 1,011 22,890 $ 31,633 $ 1,316,106 $ 10,522 $ 307,277 Securities Available for Sale U.S. Government agencies $ 529 $ 73,353 $ 1,236 $ 23,763 Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 17,381 1,274,934 8,604 221,435 Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 10,911 432,300 — — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 13,120 846,581 5,310 98,106 State and municipal obligations 1,867 123,987 352 8,579 Small Business Administration loan-backed securities 2,720 179,168 1,759 110,309 Corporate securities 9 4,991 — — $ 46,537 $ 2,935,314 $ 17,261 $ 462,192 December 31, 2020: Securities Held to Maturity Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises $ 1,032 $ 213,146 $ — $ — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 91 27,445 — — $ 1,123 $ 240,591 $ — $ — Securities Available for Sale U.S. Government agencies $ 642 $ 24,358 $ — $ — Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,031 260,411 — — Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 825 140,333 — — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 46 13,594 4 871 State and municipal obligations 27 8,620 — — Small Business Administration loan-backed securities 573 94,981 1,017 104,254 $ 3,144 $ 542,297 $ 1,021 $ 105,125 |
Schedule of trading securities | (Dollars in thousands) 2021 2020 U.S. Government agencies $ 5,154 $ — Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises 6,853 — Other residential mortgage issued or guaranteed by U.S. government agencies or sponsored enterprises 12,315 — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 29,667 — State and municipal obligations 20,798 10,674 Other debt securities 2,902 — $ 77,689 $ 10,674 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans | |
Summary of loans | The following is a summary of total loans: December 31, December 31, (Dollars in thousands) 2021 2020 Loans: Construction and land development (1) $ 2,029,216 $ 1,890,846 Commercial non-owner occupied (3) 6,735,699 6,152,246 Commercial owner occupied real estate 4,970,116 4,832,697 Consumer owner occupied (2, 3) 3,638,364 3,682,667 Home equity loans 1,168,594 1,292,141 Commercial and industrial 3,761,133 5,046,310 Other income producing property (3) 696,804 854,900 Consumer 904,657 894,334 Other loans 23,583 17,993 Total loans 23,928,166 24,664,134 Less allowance for credit losses (301,807) (457,309) Loans, net $ 23,626,359 $ 24,206,825 (1) Construction and land development includes loans for both commercial construction and development, as well as loans for 1-4 family construction and lot loans. (2) Consumer owner occupied real estate includes loans on both 1-4 family owner occupied property, as well as loans collateralized by 1-4 family owner occupied properties with a business intent. (3) As a result of the conversion of legacy CenterState’s core system to the Company’s core system completed during the second quarter of 2021, several loans were reclassified to conform with the Company’s current loan segmentation, most notably residential investment loans were reclassified from Consumer Owner Occupied to Other Income Producing Property, and some multi-family loans were reclassified from Other Income Producing Property to Commercial Non-Owner Occupied. Prior period loan balances presented above were revised to conform with the current loan segmentation. |
Schedule of credit risk profile by risk grade of loans | The following table presents the credit risk profile by risk grade of commercial loans by origination year: Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Total Construction and land development Risk rating: Pass $ 570,166 $ 360,488 $ 206,586 $ 38,866 $ 24,728 $ 49,321 $ 76,680 $ 1,326,835 Special mention 2,347 3,067 186 — 1,557 1,715 487 9,359 Substandard 960 210 2,304 326 543 2,209 — 6,552 Doubtful 1 — — — — 8 — 9 Total Construction and land development $ 573,474 $ 363,765 $ 209,076 $ 39,192 $ 26,828 $ 53,253 $ 77,167 $ 1,342,755 Commercial non-owner occupied Risk rating: Pass $ 1,812,512 $ 798,171 $ 1,061,021 $ 676,803 $ 494,618 $ 1,371,729 $ 102,763 $ 6,317,617 Special mention 16,683 12,985 14,138 36,875 25,729 110,109 — 216,519 Substandard 23,035 160 64,408 23,346 31,952 56,477 2,139 201,517 Doubtful — — — — — 46 — 46 Total Commercial non-owner occupied $ 1,852,230 $ 811,316 $ 1,139,567 $ 737,024 $ 552,299 $ 1,538,361 $ 104,902 $ 6,735,699 Commercial Owner Occupied Risk rating: Pass $ 1,182,722 $ 780,339 $ 801,162 $ 549,642 $ 428,163 $ 980,701 $ 69,739 $ 4,792,468 Special mention 9,152 4,257 7,331 10,860 22,792 49,083 115 103,590 Substandard 7,375 2,907 8,587 2,053 18,600 34,431 80 74,033 Doubtful — 1 — — — 24 — 25 Total commercial owner occupied $ 1,199,249 $ 787,504 $ 817,080 $ 562,555 $ 469,555 $ 1,064,239 $ 69,934 $ 4,970,116 Commercial and industrial Risk rating: Pass $ 1,198,849 $ 618,676 $ 360,551 $ 267,772 $ 178,538 $ 219,339 $ 860,134 $ 3,703,859 Special mention 2,759 1,519 2,434 1,268 3,224 3,871 3,281 18,356 Substandard 738 5,965 8,212 2,653 3,438 5,183 12,701 38,890 Doubtful — — 5 3 2 16 2 28 Total commercial and industrial $ 1,202,346 $ 626,160 $ 371,202 $ 271,696 $ 185,202 $ 228,409 $ 876,118 $ 3,761,133 Other income producing property Risk rating: Pass $ 105,533 $ 73,583 $ 67,173 $ 76,971 $ 56,343 $ 142,183 $ 56,190 $ 577,976 Special mention 1,580 1,851 1,063 232 1,381 13,526 424 20,057 Substandard 1,304 482 298 166 787 12,531 46 15,614 Doubtful — — — — — 6 — 6 Total other income producing property $ 108,417 $ 75,916 $ 68,534 $ 77,369 $ 58,511 $ 168,246 $ 56,660 $ 613,653 Consumer owner occupied Risk rating: Pass $ 3,513 $ 2,874 $ 1,099 $ 85 $ 139 $ 820 $ 16,977 $ 25,507 Special mention 1,219 180 2,430 81 — 3 — 3,913 Substandard — 16 238 — — 223 — 477 Doubtful — — — 1 — 145 — 146 Total Consumer owner occupied $ 4,732 $ 3,070 $ 3,767 $ 167 $ 139 $ 1,191 $ 16,977 $ 30,043 Other loans Risk rating: Pass $ 23,583 $ — $ — $ — $ — $ — $ — $ 23,583 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total other loans $ 23,583 $ — $ — $ — $ — $ — $ — $ 23,583 Total Commercial Loans Risk rating: Pass $ 4,896,878 $ 2,634,131 $ 2,497,592 $ 1,610,139 $ 1,182,529 $ 2,764,093 $ 1,182,483 $ 16,767,845 Special mention 33,740 23,859 27,582 49,316 54,683 178,307 4,307 371,794 Substandard 33,412 9,740 84,047 28,544 55,320 111,054 14,966 337,083 Doubtful 1 1 5 4 2 245 2 260 Total Commercial Loans $ 4,964,031 $ 2,667,731 $ 2,609,226 $ 1,688,003 $ 1,292,534 $ 3,053,699 $ 1,201,758 $ 17,476,982 Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Total Construction and land development Risk rating: Pass $ 457,425 $ 410,075 $ 127,187 $ 79,345 $ 41,018 $ 52,889 $ 15,502 $ 1,183,441 Special mention 20,912 5,668 707 1,757 1,815 7,293 — 38,152 Substandard 389 2,800 763 2,087 201 3,669 — 9,909 Doubtful — — — — — 8 — 8 Total Construction and land development $ 478,726 $ 418,543 $ 128,657 $ 83,189 $ 43,034 $ 63,859 $ 15,502 $ 1,231,510 Commercial non-owner occupied Risk rating: Pass $ 838,646 $ 1,108,164 $ 878,172 $ 677,803 $ 723,745 $ 1,253,710 $ 58,021 $ 5,538,261 Special mention 42,492 76,890 111,466 44,790 38,983 131,015 — 445,636 Substandard 1,351 49,662 7,497 27,224 39,424 43,187 — 168,345 Doubtful — — — — — 4 — 4 Total Commercial non-owner occupied $ 882,489 $ 1,234,716 $ 997,135 $ 749,817 $ 802,152 $ 1,427,916 $ 58,021 $ 6,152,246 Commercial Owner Occupied Risk rating: Pass $ 804,895 $ 957,412 $ 719,111 $ 601,471 $ 455,065 $ 1,041,668 $ 42,239 $ 4,621,861 Special mention 6,993 15,984 13,021 14,457 13,597 48,775 21 112,848 Substandard 5,729 4,185 4,690 20,122 15,093 48,127 36 97,982 Doubtful 1 — — — — 5 — 6 Total commercial owner occupied $ 817,618 $ 977,581 $ 736,822 $ 636,050 $ 483,755 $ 1,138,575 $ 42,296 $ 4,832,697 Commercial and industrial Risk rating: Pass $ 2,723,320 $ 595,310 $ 450,238 $ 308,442 $ 223,532 $ 419,555 $ 247,169 $ 4,967,566 Special mention 1,566 3,273 3,031 7,165 2,496 25,727 9,368 52,626 Substandard 347 1,070 6,202 7,718 2,808 5,723 2,240 26,108 Doubtful — 2 1 3 3 1 — 10 Total commercial and industrial $ 2,725,233 $ 599,655 $ 459,472 $ 323,328 $ 228,839 $ 451,006 $ 258,777 $ 5,046,310 Other income producing property Risk rating: Pass $ 100,126 $ 117,860 $ 116,570 $ 95,506 $ 57,654 $ 171,572 $ 48,116 $ 707,404 Special mention 3,531 2,645 1,901 1,655 1,738 17,188 292 28,950 Substandard 1,071 1,281 997 539 488 19,382 65 23,823 Doubtful — — — — — 6 — 6 Total other income producing property $ 104,728 $ 121,786 $ 119,468 $ 97,700 $ 59,880 $ 208,148 $ 48,473 $ 760,183 Consumer owner occupied Risk rating: Pass $ 7,590 $ 3,527 $ 356 $ 339 $ 1,076 $ 1,290 $ 15,502 $ 29,680 Special mention 130 3,581 249 62 — 124 338 4,484 Substandard 113 387 142 — 5 326 — 973 Doubtful — — — — — — — — Total Consumer owner occupied $ 7,833 $ 7,495 $ 747 $ 401 $ 1,081 $ 1,740 $ 15,840 $ 35,137 Other loans Risk rating: Pass $ 17,993 $ — $ — $ — $ — $ — $ — $ 17,993 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total other loans $ 17,993 $ — $ — $ — $ — $ — $ — $ 17,993 Total Commercial Loans Risk rating: Pass $ 4,949,995 $ 3,192,348 $ 2,291,634 $ 1,762,906 $ 1,502,090 $ 2,940,684 $ 426,549 $ 17,066,206 Special mention 75,624 108,041 130,375 69,886 58,629 230,122 10,019 682,696 Substandard 9,000 59,385 20,291 57,690 58,019 120,414 2,341 327,140 Doubtful 1 2 1 3 3 24 — 34 Total Commercial Loans $ 5,034,620 $ 3,359,776 $ 2,442,301 $ 1,890,485 $ 1,618,741 $ 3,291,244 $ 438,909 $ 18,076,076 For the consumer segment, delinquency of a loan is determined by past due status. Consumer loans are automatically placed on nonaccrual status once the loan is 90 days past due. Construction and land development loans are on 1-4 properties and lots. The following table presents the credit risk profile by past due status of consumer loans by origination year: Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Total Consumer owner occupied Days past due: Current $ 1,192,449 $ 710,828 $ 405,138 $ 246,487 $ 228,876 $ 810,605 $ 4 $ 3,594,387 30 days past due 354 666 234 472 1,068 2,230 — 5,024 60 days past due — 330 218 254 111 928 — 1,841 90 days past due 235 574 691 549 274 4,746 — 7,069 Total Consumer owner occupied $ 1,193,038 $ 712,398 $ 406,281 $ 247,762 $ 230,329 $ 818,509 $ 4 $ 3,608,321 Home equity loans Days past due: Current $ 7,128 $ 5,648 $ 4,745 $ 2,180 $ 993 $ 24,716 $ 1,116,621 $ 1,162,031 30 days past due 6 49 68 71 24 491 2,200 2,909 60 days past due — — — — — 603 339 942 90 days past due 75 65 172 180 22 1,548 650 2,712 Total Home equity loans $ 7,209 $ 5,762 $ 4,985 $ 2,431 $ 1,039 $ 27,358 $ 1,119,810 $ 1,168,594 Consumer Days past due: Current $ 314,475 $ 169,443 $ 127,757 $ 69,892 $ 36,304 $ 151,948 $ 29,168 $ 898,987 30 days past due 229 364 208 191 132 1,570 137 2,831 60 days past due 145 82 90 124 90 658 17 1,206 90 days past due 74 121 181 109 29 1,119 — 1,633 Total consumer $ 314,923 $ 170,010 $ 128,236 $ 70,316 $ 36,555 $ 155,295 $ 29,322 $ 904,657 Construction and land development Days past due: Current $ 411,728 $ 204,368 $ 33,965 $ 13,429 $ 8,484 $ 14,185 $ 162 $ 686,321 30 days past due — 24 — — — — — 24 60 days past due — — — — — 12 — 12 90 days past due — — — — — 104 — 104 Total Construction and land development $ 411,728 $ 204,392 $ 33,965 $ 13,429 $ 8,484 $ 14,301 $ 162 $ 686,461 Other income producing property Days past due: Current $ 22,131 $ 5,620 $ 4,906 $ 4,977 $ 6,303 $ 37,575 $ 1,379 $ 82,891 30 days past due — — — — — 90 — 90 60 days past due — — — — — 156 — 156 90 days past due — — — — — 14 — 14 Total other income producing property $ 22,131 $ 5,620 $ 4,906 $ 4,977 $ 6,303 $ 37,835 $ 1,379 $ 83,151 Total Consumer Loans Days past due: Current $ 1,947,911 $ 1,095,907 $ 576,511 $ 336,965 $ 280,960 $ 1,039,029 $ 1,147,334 $ 6,424,617 30 days past due 589 1,103 510 734 1,224 4,381 2,337 10,878 60 days past due 145 412 308 378 201 2,357 356 4,157 90 days past due 384 760 1,044 838 325 7,531 650 11,532 Total Consumer Loans $ 1,949,029 $ 1,098,182 $ 578,373 $ 338,915 $ 282,710 $ 1,053,298 $ 1,150,677 $ 6,451,184 Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Total Total Loans $ 6,913,060 $ 3,765,913 $ 3,187,599 $ 2,026,918 $ 1,575,244 $ 4,106,997 $ 2,352,435 $ 23,928,166 Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Total Consumer owner occupied Days past due: Current $ 759,525 $ 615,142 $ 471,224 $ 446,996 $ 351,859 $ 960,330 $ — $ 3,605,076 30 days past due 4,933 7,744 2,776 2,070 3,203 9,294 — 30,020 60 days past due — 350 1,222 486 103 2,710 — 4,871 90 days past due — 176 264 994 875 5,254 — 7,563 Total Consumer owner occupied $ 764,458 $ 623,412 $ 475,486 $ 450,546 $ 356,040 $ 977,588 $ — $ 3,647,530 Home equity loans Days past due: Current $ 7,654 $ 6,694 $ 7,670 $ 658 $ 398 $ 30,039 $ 1,231,510 $ 1,284,623 30 days past due 134 52 — 79 — 272 2,324 2,861 60 days past due — — — — — 116 418 534 90 days past due 155 93 — 157 330 1,886 1,502 4,123 Total Home equity loans $ 7,943 $ 6,839 $ 7,670 $ 894 $ 728 $ 32,313 $ 1,235,754 $ 1,292,141 Consumer Days past due: Current $ 291,305 $ 201,330 $ 115,203 $ 62,485 $ 38,272 $ 147,101 $ 32,874 $ 888,570 30 days past due 105 473 454 224 29 1,043 23 2,351 60 days past due 68 143 93 61 37 376 47 825 90 days past due 73 195 272 185 100 1,663 100 2,588 Total consumer $ 291,551 $ 202,141 $ 116,022 $ 62,955 $ 38,438 $ 150,183 $ 33,044 $ 894,334 Construction and land development Days past due: Current $ 370,457 $ 163,728 $ 63,521 $ 18,530 $ 4,497 $ 25,399 $ — $ 646,132 30 days past due 6,172 3,660 161 — 2,255 184 — 12,432 60 days past due 282 — 438 — — — — 720 90 days past due — — — — — 52 — 52 Total Construction and land development $ 376,911 $ 167,388 $ 64,120 $ 18,530 $ 6,752 $ 25,635 $ — $ 659,336 Other income producing property Days past due: Current $ 7,941 $ 7,073 $ 8,828 $ 8,946 $ 6,872 $ 51,554 $ 2,709 $ 93,923 30 days past due — — — — — 240 — 240 60 days past due — — — 135 — 196 — 331 90 days past due — — — — — 223 — 223 Total other income producing property $ 7,941 $ 7,073 $ 8,828 $ 9,081 $ 6,872 $ 52,213 $ 2,709 $ 94,717 Total Consumer Loans Days past due: Current $ 1,436,882 $ 993,967 $ 666,446 $ 537,615 $ 401,898 $ 1,214,423 $ 1,267,093 $ 6,518,324 30 days past due 11,344 11,929 3,391 2,373 5,487 11,033 2,347 47,904 60 days past due 350 493 1,753 682 140 3,398 465 7,281 90 days past due 228 464 536 1,336 1,305 9,078 1,602 14,549 Total Consumer Loans $ 1,448,804 $ 1,006,853 $ 672,126 $ 542,006 $ 408,830 $ 1,237,932 $ 1,271,507 $ 6,588,058 Term Loans (Dollars in thousands) Amortized Cost Basis by Origination Year As of December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Total Total Loans $ 6,483,424 $ 4,366,629 $ 3,114,427 $ 2,432,491 $ 2,027,571 $ 4,529,176 $ 1,710,416 $ 24,664,134 |
Aging analysis of past due loans (includes nonaccrual loans), segregated by class of loans | 30 - 59 Days 60 - 89 Days 90+ Days Total Non- Total (Dollars in thousands) Past Due Past Due Past Due Past Due Current Accruing Loans December 31, 2021 Construction and land development $ 1,176 $ 59 $ 43 $ 1,278 $ 2,026,371 $ 1,567 $ 2,029,216 Commercial non-owner occupied 3,591 2,110 96 5,797 6,709,993 19,909 6,735,699 Commercial owner occupied 2,756 1,732 626 5,114 4,950,470 14,532 4,970,116 Consumer owner occupied 4,046 533 — 4,579 3,615,602 18,183 3,638,364 Home equity loans 2,565 913 — 3,478 1,158,861 6,255 1,168,594 Commercial and industrial 50,451 26,639 3,991 81,081 3,672,611 7,441 3,761,133 Other income producing property 879 424 106 1,409 691,320 4,075 696,804 Consumer 2,672 840 1 3,513 897,688 3,456 904,657 Other loans — — — — 23,583 — 23,583 $ 68,136 $ 33,250 $ 4,863 $ 106,249 $ 23,746,499 $ 75,418 $ 23,928,166 December 31, 2020 Construction and land development $ 520 $ 1,142 $ — $ 1,662 $ 1,886,763 $ 2,421 $ 1,890,846 Commercial non-owner occupied 188 372 471 1,031 6,145,745 5,470 6,152,246 Commercial owner occupied 2,900 840 — 3,740 4,802,898 26,059 4,832,697 Consumer owner occupied 1,165 3,294 34 4,493 3,649,697 28,477 3,682,667 Home equity loans 1,805 481 — 2,286 1,279,929 9,926 1,292,141 Commercial and industrial 10,979 22,089 10,864 43,932 4,993,160 9,218 5,046,310 Other income producing property 897 338 278 1,513 845,844 7,543 854,900 Consumer 1,718 818 4 2,540 885,720 6,074 894,334 Other loans 13 6 — 19 17,974 — 17,993 $ 20,185 $ 29,380 $ 11,651 $ 61,216 $ 24,507,730 $ 95,188 $ 24,664,134 |
Summary of information pertaining to nonaccrual loans by class | December 31, Greater than Non-accrual December 31, (Dollars in thousands) 2021 90 Days Accruing (1) with no allowance (1) 2020 Construction and land development $ 1,567 $ 43 $ 81 $ 2,421 Commercial non-owner occupied 19,909 96 8,771 5,470 Commercial owner occupied real estate 14,532 626 6,609 26,059 Consumer owner occupied 18,183 — — 28,477 Home equity loans 6,255 — 49 9,926 Commercial and industrial 7,441 3,991 177 9,218 Other income producing property 4,075 106 220 7,543 Consumer 3,456 1 — 6,074 Total loans on nonaccrual status $ 75,418 $ 4,863 $ 15,907 $ 95,188 (1) Greater than 90 days accruing and non-accrual with no allowance loans at December 31, 2021. |
Summary of collateral dependent loans, by type of collateral | December 31, Collateral December 31, Collateral (Dollars in thousands) 2021 Coverage % 2020 Coverage % Commercial owner occupied real estate Church $ 1,953 $ 2,308 118% $ — — Office — — 1,076 $ 1,485 138% Retail — — 4,849 5,490 113% Other 4,656 12,200 262% 1,010 1,075 106% Commercial non-owner occupied real estate Hotel 1,822 4,100 225% — — Other 6,949 9,630 139% — — Total collateral dependent loans $ 15,380 $ 28,238 $ 6,935 $ 8,050 |
Schedule of restructured loans segregated by class and type of concession | Year Ended December 31, 2021 2020 Pre-Modification Post-Modification Pre-Modification Post-Modification Number Amortized Amortized Number Amortized Amortized (Dollars in thousands) of loans Cost Cost of loans Cost Cost Interest rate modification Construction and land development — $ — $ — 2 $ 96 $ 96 Commercial owner occupied 1 276 276 4 6,905 6,905 Consumer owner occupied — — — 1 28 28 Home equity loans — — — 1 52 52 Commercial and industrial 1 33 33 3 372 372 Other income producing property 1 206 206 2 71 71 Total interest rate modifications 3 $ 515 $ 515 13 $ 7,524 $ 7,524 Term modification Commercial non-owner occupied 1 $ 316 $ 316 — $ — $ — Commercial owner occupied — — — 1 180 180 Consumer owner occupied — — — 5 579 579 Home equity loans — — — 1 50 50 Commercial and industrial 1 38 38 2 284 284 Other income producing property — — — 1 338 338 Consumer — — — 3 120 120 Total term modifications 2 $ 354 $ 354 13 $ 1,551 $ 1,551 5 $ 869 $ 869 26 $ 9,075 $ 9,075 |
Schedule of changes in status of loans restructured within the previous 12 months | Paying Under Restructured Terms Converted to Nonaccrual Foreclosures and Defaults Number Amortized Number Amortized Number Amortized (Dollars in thousands) of Loans Cost of Loans Cost of Loans Cost Interest rate modification 3 $ 515 — $ — — $ — Term modification 1 316 1 38 — — 4 $ 831 1 $ 38 — $ — |
Allowance for Credit Losses (_2
Allowance for Credit Losses (ACL) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Allowance for Credit Losses | |
Schedule of changes in allowance for loan losses | The following table presents a disaggregated analysis of activity in the allowance for credit losses as follows: Residential Residential Residential Other CRE Owner Non Owner (Dollars in thousands) Mortgage Sr. Mortgage Jr. HELOC Construction C&D Consumer Multifamily Municipal Occupied Occupied CRE C & I Total Year Ended December 31,2021 Allowance for credit losses: Balance at end of period December 31, 2020 $ 63,561 $ 1,238 $ 16,698 $ 4,914 $ 67,197 $ 26,562 $ 7,887 $ 1,510 $ 97,104 $ 124,421 $ 46,217 $ 457,309 Charge-offs (204) — (1,002) (29) (87) (8,809) — — (2,052) (863) (3,853) (16,899) Recoveries 1,547 146 2,256 60 1,861 2,075 3 — 970 1,070 3,812 13,800 Net recoveries (charge offs) 1,343 146 1,254 31 1,774 (6,734) 3 — (1,082) 207 (41) (3,099) Provision (benefit) (1) (17,868) (773) (4,627) 52 (31,378) 3,321 (2,969) (945) (34,228) (44,979) (18,009) (152,403) Balance at end of period December 31,2021 $ 47,036 $ 611 $ 13,325 $ 4,997 $ 37,593 $ 23,149 $ 4,921 $ 565 $ 61,794 $ 79,649 $ 28,167 $ 301,807 Allowance for credit losses: Quantitative allowance Collectively evaluated $ 45,575 $ 611 $ 12,954 $ 4,989 $ 37,159 $ 21,887 $ 4,921 $ 565 $ 60,353 $ 77,494 $ 25,702 $ 292,210 Individually evaluated 150 — 91 — 434 — — — 590 196 1,003 2,464 Total quantitative allowance 45,725 611 13,045 4,989 37,593 21,887 4,921 565 60,943 77,690 26,705 294,674 Qualitative allowance 1,311 — 280 8 — 1,262 — — 851 1,959 1,462 7,133 Balance at end of period December 31,2021 $ 47,036 $ 611 $ 13,325 $ 4,997 $ 37,593 $ 23,149 $ 4,921 $ 565 $ 61,794 $ 79,649 $ 28,167 $ 301,807 Year Ended December 31,2020 Allowance for credit losses: Balance at beginning of period January 1, 2020 $ 6,128 $ 15 $ 4,327 $ 815 $ 6,211 $ 4,350 $ 1,557 $ 956 $ 10,879 $ 15,219 $ 6,470 $ 56,927 Impact of Adoption 5,455 11 3,849 779 5,588 3,490 1,391 914 9,505 13,898 6,150 51,030 Initial PCD Allowance 406 3 289 — 351 669 97 898 656 39 3,408 Adjusted CECL balance, January 1, 2020 $ 11,989 $ 29 $ 8,465 $ 1,594 $ 12,150 $ 8,509 $ 3,045 $ 1,870 $ 21,282 $ 29,773 $ 12,659 $ 111,365 Impact of merger on provision for non-PCD loans 16,712 226 4,227 4,893 7,673 3,836 1,212 919 25,393 35,067 9,284 109,442 Initial PCD Allowance 29,935 804 5,119 1,302 6,035 6,120 902 1,003 34,077 45,787 18,320 149,404 Charge-offs (528) (24) (1,053) (32) (347) (6,158) — — (1,205) (601) (4,654) (14,602) Recoveries 1,143 455 1,251 111 1,407 1,922 71 — 1,089 518 3,810 11,777 Net charge offs 615 431 198 79 1,060 (4,236) 71 — (116) (83) (844) (2,825) Provision (benefit) (1) 4,310 (252) (1,311) (2,954) 40,279 12,333 2,657 (2,282) 16,468 13,877 6,798 89,923 Balance at end of period December 31,2020 $ 63,561 $ 1,238 $ 16,698 $ 4,914 $ 67,197 $ 26,562 $ 7,887 $ 1,510 $ 97,104 $ 124,421 $ 46,217 $ 457,309 Allowance for credit losses: Quantitative allowance Collectively evaluated $ 54,656 $ 1,238 $ 14,625 $ 4,733 $ 67,188 $ 18,435 $ 7,887 $ 685 $ 91,106 $ 116,571 $ 38,805 $ 415,929 Individually evaluated 82 — 77 — 9 120 — — 948 6 7 1,249 Total quantitative allowance 54,738 1,238 14,702 4,733 67,197 18,555 7,887 685 92,054 116,577 38,812 417,178 Qualitative allowance 8,823 — 1,996 181 — 8,007 — 825 5,050 7,844 7,405 40,131 Balance at end of period December 31,2020 $ 63,561 $ 1,238 $ 16,698 $ 4,914 $ 67,197 $ 26,562 $ 7,887 $ 1,510 $ 97,104 $ 124,421 $ 46,217 $ 457,309 (1) A negative provision (recovery) for credit losses of $12.9 million was recorded during 2021 compared to an additional provision for credit losses of $43.4 million, of which $9.6 million was from the initial impact from the merger with CSFL, recorded during 2020 for the allowance for credit losses for unfunded commitments that is not considered in the above table. An aggregated analysis of the changes in allowance for loan losses, for comparative period, prior to the adoption of ASU 2016-13 is as follows: Non-acquired Acquired Non-Credit 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 |
Non-acquired loans | |
Allowance for Credit Losses | |
Schedule of changes in allowance for loan losses | The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for non-acquired loans, for comparative period, prior to the adoption of ASU 2016-13: 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 |
Acquired non-credit impaired loans | |
Allowance for Credit Losses | |
Schedule of changes in allowance for loan losses | The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired non-credit impaired loans, for comparative period, prior to the adoption of ASU 2016-13: 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 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 at end of period $ — $ — $ — $ — $ — $ — $ — $ — $ — 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 |
Acquired credit impaired loans | |
Allowance for Credit Losses | |
Schedule of changes in allowance for loan losses | The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired credit impaired loans, for comparative period, prior to the adoption of ASU 2016-13: 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 at beginning of period $ 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 at end of period $ 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 * 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. |
Other Real Estate Owned and B_2
Other Real Estate Owned and Bank Premises Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Real Estate Owned and Bank Premises Held for Sale | |
Schedule of information pertaining to OREO and Bank Premises Held for Sale | (Dollars in thousands) OREO Bank Premises Held For Sale Total Balance, December 31, 2019 $ 6,539 $ 5,425 $ 11,964 Acquired in the CSFL acquisition 9,931 18,380 28,311 Additions, net 5,553 21,787 27,340 Writedowns (729) (356) (1,085) Sold (9,380) (9,230) (18,610) Balance, December 31, 2020 $ 11,914 $ 36,006 $ 47,920 Measurement period adjustment pertaining to CSFL acquisition — (1,226) (1,226) Additions, net 3,642 4,373 8,015 Writedowns (1,949) (118) (2,067) Sold (10,871) (29,457) (40,328) Balance, December 31, 2021 $ 2,736 $ 9,578 $ 12,314 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment | |
Schedule of premises and equipment | December 31, (Dollars in thousands) Useful Life 2021 2020 Land $ 145,276 $ 152,263 Buildings and leasehold improvements 15 - 40 years 404,655 406,078 Equipment and furnishings 3 - 10 years 169,271 161,009 Lease right of use assets 110,311 113,422 Construction in process 14,518 3,618 Total 844,031 836,390 Less accumulated depreciation (285,532) (257,151) $ 558,499 $ 579,239 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Other Intangible Assets | |
Summary of changes in the carrying amounts of goodwill | Year Ended December 31, (Dollars in thousands) 2021 2020 Balance at beginning of period $ 1,563,942 $ 1,002,900 Additions: Goodwill from CenterState acquisition — 561,042 Goodwill from Duncan Williams acquisition 15,816 — Goodwill subsequent fair value adjustment from CenterState acquisition 1,327 — Balance at end of period $ 1,581,085 $ 1,563,942 |
Summary of gross carrying amounts and accumulated amortization of other intangible assets | December 31, (Dollars in thousands) 2021 2020 Gross carrying amount $ 257,874 $ 258,554 Accumulated amortization (129,807) (95,962) $ 128,067 $ 162,592 |
Schedule of estimated amortization expense of intangibles assets | (Dollars in thousands) Year ended December 31: 2022 $ 30,056 2023 24,634 2024 19,790 2025 16,480 2026 13,264 Thereafter 23,843 $ 128,067 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Schedule of total deposits | December 31, (Dollars in thousands) 2021 2020 Non-interest bearing checking $ 11,498,840 $ 9,711,338 Interest-bearing checking 9,018,987 6,955,575 Savings 3,350,547 2,694,011 Money market 8,376,380 7,584,353 Time deposits 2,810,075 3,748,605 Total deposits $ 35,054,829 $ 30,693,882 |
Schedule of maturities of time deposits of all denominations | (Dollars in thousands) Year ended December 31: 2022 $ 2,078,328 2023 410,875 2024 121,266 2025 138,171 2026 58,139 Thereafter 3,296 $ 2,810,075 |
Federal Funds Purchased and S_2
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 (Dollars in thousands) Amount Rate Amount Rate Amount Rate At period-end: Federal funds purchased and securities sold under repurchase agreements $ 781,239 0.12 % $ 779,666 0.17 % $ 298,741 0.90 % Average for the year: Federal funds purchased and securities sold under repurchase agreements $ 877,969 0.14 % $ 553,110 0.35 % $ 282,172 0.93 % Maximum month-end balance: Federal funds purchased and securities sold under repurchase agreements $ 898,663 $ 779,666 $ 321,833 |
Other Borrowings (Tables)
Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Borrowings. | |
Schedule of other borrowings | The Company’s other borrowings were as follows: 2021 2020 Weighted Weighted Interest Average Interest Average Rate at Average Interest Rate at Average Interest (Dollars in thousands) Maturity 12/31/2021 Balance Balance Rate 12/31/2020 Balance Balance Rate Short-term borrowings: FHLB Advances Various — % $ — — % $ — FRB Borrowings Various — % — — % — US Bank Line of Credit Daily — % — — % — Total short-term borrowings — % $ — $ 1,986 2.22 % — % $ — $ 745,939 0.63 % Long-term borrowings SCBT Capital Trust I junior subordinated debt (1) 6/15/2035 1.99 % $ 12,372 2.01 % $ 12,372 SCBT Capital Trust II junior subordinated debt (1) 6/15/2035 1.99 % 8,248 2.01 % 8,248 SCBT Capital Trust III junior subordinated debt (1) 7/18/2035 1.79 % 20,619 1.81 % 20,619 SAVB Capital Trust I junior subordinated debt (1) 10/7/2033 2.97 % 6,186 3.09 % 6,186 SAVB Capital Trust II junior subordinated debt (1) 12/15/2034 2.40 % 4,124 2.42 % 4,124 TSB Statutory Trust I junior subordinated debt (1) 3/14/2037 1.92 % 3,093 1.94 % 3,093 Southeastern Bank Financial Statutory Trust I junior subordinated debt (1) 12/15/2035 1.60 % 10,310 1.62 % 10,310 Southeastern Bank Financial Statutory Trust II junior subordinated debt (1) 6/15/2036 1.60 % 10,310 1.62 % 10,310 CSBC Statutory Trust I junior subordinated debt (1) 12/15/2035 1.77 % 15,464 1.79 % 15,464 Community Capital Statutory Trust I junior subordinated debt (1) 6/15/2036 1.75 % 10,310 1.77 % 10,310 FCRV Statutory Trust I junior subordinated debt (1) 12/15/2036 1.90 % 5,155 1.92 % 5,155 Provident Community Bancshares Capital Trust I junior subordinated debt (1) 3/1/2037 1.87 % 4,124 1.97 % 4,124 Provident Community Bancshares Capital Trust II junior subordinated debt (1) 10/1/2036 1.91 % 8,248 1.97 % 8,248 CenterState Banks of Florida Statutory Trust I junior subordinated debt (1) 9/22/2033 — % — 3.30 % 10,310 Valrico Capital Statutory Trust junior subordinated debt (1) 9/8/2034 — % — 2.93 % 2,577 Federal Trust Statutory Trust I junior subordinated debt (1) 9/17/2033 — % — 3.18 % 5,155 Gulfstream Bancshares Capital Trust II junior subordinated debt (1) 3/6/2037 — % — 1.93 % 3,093 Homestead Statutory Trust I junior subordinated debt (1) 10/1/2036 — % — 1.88 % 10,495 BSA Financial Statutory Trust I junior subordinated debt (1) 12/15/2035 — % — 1.77 % 5,155 MRCB Statutory Trust II junior subordinated debt (1) 9/15/2036 — % — 1.82 % 3,093 Fair Market Value Discount Trust Preferred Debt Acquired (1,398) (14,116) Total Junior Subordinated Debt 1.89 % 117,165 130,048 1.97 % 2.05 % 144,325 131,817 2.51 % Residential Warranty Corp. subordinated note (5) 4/15/2021 — % — 5.00 % 7,000 Messiah College subordinated note (5) 4/15/2021 — % — 5.00 % 4,000 National Bank of Commerce subordinated debt (2) 6/1/2026 — % — 6.00 % 25,000 Landmark Bancshares subordinated debt (3) 6/30/2027 6.50 % 13,000 6.50 % 13,000 CenterState Bank Corporation subordinated debt (4) 6/1/2030 5.75 % 200,000 5.75 % 200,000 Long-term subordinated debt costs (3,099) (3,146) Total Subordinated Debt 5.80 % 209,901 222,765 5.81 % 5.78 % 245,854 139,584 5.69 % Other Long Term Debt Various — % — — — % — % — 92 0.50 % Total long-term borrowings 4.40 % $ 327,066 $ 352,813 4.36 % 4.40 % $ 390,179 $ 271,493 3.60 % Total borrowings 4.40 % $ 327,066 $ 354,799 4.35 % 4.40 % $ 390,179 $ 1,017,432 1.58 % (1) All of the junior subordinated debt above is adjustable rate based on three-month LIBOR plus a spread ranging from (2) The Notes bear interest at a fixed rate of per year, from, and including, May 19, 2016, to, but excluding, June 1, 2021. On June 1, 2021, the Notes convert to a floating rate equal to three-month LIBOR plus basis points. The Notes were redeemed by the Company on June 1, 2021. (3) The Notes bear interest at a fixed rate of per year, to, but excluding, June 30, 2022. On June 30, 2022, the Notes convert to a floating rate equal to three-month LIBOR plus basis points. The Notes may be redeemed by the Company after June 30, 2022. (4) The per year, to, but excluding, June 1, 2025. On June 1, 2025, the Notes convert to a floating rate equal to SOFR plus basis points. The Notes may be redeemed by the Company after June 1, 2025. The balance in the table above at December 31, 2021 is net of debt issuance costs of (5) These subordinated notes were not classified as Tier 2 Capital for regulatory capital purposes. |
Summary of principal maturities of other borrowings, net of unamortized discount or debt issuance costs | Junior Subordinated FHLB Subordinated (Dollars in thousands) Debt Advances Debt Total Year Ended December 31, 2022 $ — $ — $ — $ — 2023 — — — — 2024 — — — — 2025 — — — — 2026 — — — — Thereafter 117,165 — 209,901 327,066 $ 117,165 $ — $ 209,901 $ 327,066 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule of provision for income taxes | Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Current: Federal $ 43,959 $ 16,245 $ 40,375 State 16,512 13,296 4,965 Total current tax expense 60,471 29,541 45,340 Deferred: Federal 61,521 (36,801) (1,598) State 6,744 (9,400) 200 Total deferred tax expense (benefit) 68,265 (46,201) (1,398) Provision (benefit) for income taxes $ 128,736 $ (16,660) $ 43,942 |
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) 2021 2020 2019 Income taxes at federal statutory rate $ 126,899 $ 21,834 $ 48,389 Increase (reduction) of taxes resulting from: State income taxes, net of federal tax benefit 18,372 3,077 4,080 Non-deductible merger expenses — 1,344 — Increase in cash surrender value of BOLI policies (3,866) (2,389) (1,210) Tax-exempt interest (5,450) (2,257) (1,877) Income tax credits (11,759) (7,138) (6,881) Non-deductible FDIC premiums 2,380 1,364 133 Non-deductible executive compensation 530 1,016 315 Benefit of tax loss carryback under CARES Act — (31,468) — Other, net 1,630 (2,043) 993 $ 128,736 $ (16,660) $ 43,942 |
Schedule of components of the net deferred tax asset | December 31, (Dollars in thousands) 2021 2020 Allowance for credit losses $ 81,767 $ 119,602 Other-than-temporary impairment on SBIC investments — 268 Share-based compensation 6,290 2,807 Pension plan and post-retirement benefits 752 516 Deferred compensation 14,437 13,671 Purchase accounting adjustments — 11,772 Other real estate owned 1,577 899 Net operating loss and tax credit carryforwards 20,659 26,229 Deferred loan fees and costs — 12,826 Nonaccrual Interest 88 3,141 Lease liability 28,514 28,179 Mark to market assets 11,788 — Unrealized losses on investment securities available for sale 6,691 — Other 719 603 Total deferred tax assets 173,282 220,513 Unrealized gains on investment securities available for sale — 13,026 Depreciation 21,028 18,326 Intangible assets 27,732 34,648 Net deferred loan costs 3,579 — Right of use assets 27,136 27,012 Prepaid expense 725 1,950 Tax deductible goodwill 5,994 1,302 Mortgage servicing rights 16,100 6,134 Purchase accounting adjustments 890 — Other 302 1,534 Total deferred tax liabilities 103,486 103,932 Net deferred tax assets before valuation allowance 69,796 116,581 Less, valuation allowance (4,832) (5,635) Net deferred tax assets $ 64,964 $ 110,946 |
Other Expense (Tables)
Other Expense (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Expense | |
Summary of the components of other noninterest expense | Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Business development and staff related $ 14,571 $ 8,721 $ 8,837 Bankcard expense 3,459 2,224 2,331 Other loan expense 7,562 5,105 2,087 Director and shareholder expense 5,486 4,175 1,859 Armored carrier and courier expense 3,081 2,449 1,874 Property and sales tax 3,487 3,936 2,131 Bank service charge expense 2,037 1,725 776 Fraud and operational charge-off expense 4,727 2,231 1,179 Low income housing tax credit partnership amortization 9,986 12,977 6,141 Donations 2,563 2,121 999 Other 10,392 7,181 3,279 $ 67,351 $ 52,845 $ 31,493 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Common Share | |
Schedule of computation of basic and diluted earnings per common share | Year Ended December 31, (Dollars and shares in thousands, except for per share amounts) 2021 2020 2019 Basic earnings per common share: Net income $ 475,543 $ 120,632 $ 186,483 Weighted-average basic common shares 70,393 54,756 34,561 Basic earnings per common share $ 6.76 $ 2.20 $ 5.40 Basic earnings per common share: Net income $ 475,543 $ 120,632 $ 186,483 Weighted-average basic common shares 70,393 54,756 34,561 Effect of dilutive securities 496 307 236 Weighted-average dilutive shares 70,889 55,063 34,797 Basic earnings per common share $ 6.71 $ 2.19 $ 5.36 |
Schedule of anti-dilutive securities excluded from computation of diluted earnings per common share | Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Number of shares 57,169 136,844 62,235 Range of exercise prices $ 87.30 to $ 91.35 $ 61.42 to $ 91.35 $ 87.30 to $ 91.35 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 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 Other comprehensive income (loss) before reclassifications (119) 35,857 (26,140) 9,598 Amounts reclassified from accumulated other comprehensive income 117 (39) 36,896 36,974 Net comprehensive income (loss) (2) 35,818 10,756 46,572 Balance at December 31, 2020 (151) 47,740 — 47,589 Other comprehensive income (loss) before reclassifications 75 (68,865) — (68,790) Amounts reclassified from accumulated other comprehensive loss 133 (78) — 55 Net comprehensive income (loss) 208 (68,943) — (68,735) Balance at December 31, 2021 $ 57 $ (21,203) $ — $ (21,146) |
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 2021 2020 2019 Income Statement Line Item Affected Losses on cash flow hedges: Interest rate contracts $ — $ 47,303 $ (349) Interest expense — (10,407) 77 Provision for income taxes — 36,896 (272) Net income Gains on sales of available for sale securities: $ (102) $ (50) $ 2,655 Securities gains (losses), net 24 11 (584) Provision for income taxes (78) (39) 2,071 Net income Losses and amortization of defined benefit pension: Actuarial losses $ 174 $ 152 $ 8,053 Salaries and employee benefits (41) (35) (1,772) Provision for income taxes 133 117 6,281 Net income Total reclassifications for the period $ 55 $ 36,974 $ 8,080 |
Retirement Plans (Tables)
Retirement Plans (Tables) - Non-contributory defined benefit pension plan | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ — $ — $ 28,906 Service cost — — 121 Interest cost — — 1,158 Actuarial loss — — 2,471 Benefits paid — — (538) Expenses — — (318) Plan termination settlements — — (31,800) Benefit obligation at end of year — — — Change in plan assets: Fair value of plan assets at beginning of year — — 30,545 Actual return on plan assets — — 2,111 Benefits paid — — (538) Expenses — — (318) Plan termination settlements — — (31,800) Fair value of plan assets at end of year — — — Funded status $ — $ — $ — |
Schedule of components of net periodic benefit cost and other amounts recognized in other comprehensive income | December 31, (Dollars in thousands) 2021 2020 2019 Interest cost $ — $ — $ 1,157 Service cost — — 121 Expected return on plan assets — — (2,361) Recognized net actuarial loss — — 483 Net periodic pension benefit — — (600) Plan termination settlement — — 10,126 Net periodic pension cost with settlement — — 9,526 Net loss — — 2,722 Amortization of net gain — — (483) Plan termination settlement adjustment — — (10,126) Total amount recognized in other comprehensive income — — (7,887) Total recognized in net periodic benefit cost and other comprehensive income $ — $ — $ 1,639 |
Schedule of weighted average assumptions used to determine benefit obligations and net periodic benefit cost | Year ended December 31, 2021 2020 2019 Discount rate — % — % 4.10 % Expected long-term return on plan assets — % — % 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) 2021 2020 2019 Pension plan termination expense $ — $ — $ 9,526 Employee savings plan/ 401(k) 14,991 10,962 6,659 Supplemental executive retirement plan 3,475 2,862 2,343 Post-retirement benefits 67 43 144 $ 18,533 $ 13,867 $ 18,672 |
Post-Retirement Benefits (Table
Post-Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 209 $ 254 $ 309 Interest cost 3 6 11 Actuarial loss 11 (19) (33) Benefits paid (28) (32) (33) Benefit obligation at end of year 195 209 254 Change in plan assets: Fair value of plan assets at beginning of year — — — Employer contribution 28 32 33 Benefits paid (28) (32) (33) Fair value of plan assets at end of year — — — Funded status $ (195) $ (209) $ (254) |
Schedule of weighted average assumptions used to determine benefit obligations and net periodic benefit cost | Year Ended December 31, 2021 2020 2019 Weighted-average assumptions used to determine benefit obligation at December 31: Discount rate 2.10 % 1.60 % 2.70 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 1.60 % 2.70 % 3.80 % 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) 2021 2020 2019 Interest cost $ 3 $ 6 $ 11 Recognized net actuarial loss — 2 6 Net periodic benefit cost 3 8 17 Net gain 11 (19) (33) Amortization of gain — (2) (6) Total amount recognized in other comprehensive income 11 (21) (39) Total recognized in net periodic benefit cost and other comprehensive income $ 14 $ (13) $ (22) |
Schedule of estimated future benefit payments (including expected future service as appropriate) | (Dollars in thousands) 2022 $ 27 2023 25 2024 23 2025 22 2026 20 2027-2031 67 $ 184 |
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) 2021 2020 2019 Change in benefit obligation: Benefit obligation at beginning of year $ 2,070 $ 2,109 $ 2,281 Interest cost 31 54 82 Actuarial loss (110) 180 7 Benefits paid (246) (285) (273) Less: Federal subsidy on benefits paid 9 12 12 Benefit obligation at end of year 1,754 2,070 2,109 Change in plan assets: Fair value of plan assets at beginning of year — — — Employer contribution 236 273 261 Participants’ contributions 10 12 12 Benefits paid (246) (285) (273) Fair value of plan assets at end of year — — — Funded status $ (1,754) $ (2,070) $ (2,109) |
Schedule of weighted average assumptions used to determine benefit obligations and net periodic benefit cost | Year Ended December 31, 2021 2020 2019 Weighted-average assumptions used to determine benefit obligation at December 31: Discount rate 2.10 % 1.60 % 2.70 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 1.60 % 2.70 % 3.80 % 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) 2021 2020 2019 Interest cost $ 31 $ 54 $ 82 Recognized net actuarial loss 174 151 160 Net periodic benefit cost 205 205 242 Net (gain) loss (110) 180 7 Amortization of loss (174) (151) (160) Total amount recognized in other comprehensive income (284) 29 (153) Total recognized in net periodic benefit cost and other comprehensive income $ (79) $ 234 $ 89 |
Schedule of estimated future benefit payments (including expected future service as appropriate) | (Dollars in thousands) 2022 $ 216 2023 203 2024 189 2025 174 2026 159 2027-2031 583 $ 1,524 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-Based Compensation | |
Schedule of stock option activity | Year Ended December 31, 2021 2020 2019 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at January 1, 2021 256,425 $ 59.01 176,888 $ 67.14 213,866 $ 61.28 Assumed stock options and warrants from CSFL merger — — 136,831 37.85 — — Exercised (64,075) 45.35 (52,331) 32.12 (36,978) 33.26 Forfeited (6,250) 85.42 (4,963) 48.89 — — Expired (975) (24.37) — — Outstanding at December 31, 2021 185,125 63.03 256,425 59.01 176,888 67.14 Exercisable at December 31, 2021 185,125 63.03 256,425 59.01 131,216 60.12 Weighted-average fair value of options granted during the year $ — $ — $ 28.01 |
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 $ 21.66 - $ 40.00 19,345 1.7 years $ 32.23 19,345 $ 32.23 1.7 years $ 40.01 - $ 55.00 56,754 4.2 years $ 44.70 56,754 $ 44.70 4.2 years $ 55.01 - $ 70.00 51,857 3.1 years $ 63.62 51,857 $ 63.62 3.1 years $ 70.01 - $ 85.00 — — years $ — — $ 0.00 — years $ 85.01 - $ 91.35 57,169 5.6 years $ 91.12 57,169 $ 91.12 5.6 years 185,125 4.0 years $ 63.03 185,125 $ 63.03 4.0 years |
Summary of nonvested restricted stock | Weighted- Average Grant-Date Restricted Stock Shares Fair Value Nonvested at January 1, 2021 11,004 $ 59.42 Vested (7,938) 56.43 Nonvested at December 31, 2021 3,066 $ 67.31 |
Vesting schedule of shares | Shares 2022 750 2023 750 2024 1,566 3,066 |
Summary of nonvested RSUs | Weighted- Average Grant-Date Restricted Stock Units Shares Fair Value Outstanding at January 1, 2021 750,821 $ 60.88 Granted 301,230 81.14 Vested (93,081) 64.66 Forfeited (10,757) 64.20 Outstanding at December 31, 2021 948,213 $ 67.01 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Lease Commitments | |
Schedule of information pertaining to operating leases | (Dollars in thousands) Year Ended December 31, 2021 2020 2019 Lease Cost Components: Amortization of ROU assets - finance leases $ 466 $ 289 $ — Interest on lease liabilities - finance leases 56 44 — Operating lease cost (cost resulting from lease payments) 17,236 14,266 8,804 Short-term lease cost 446 404 494 Variable lease cost (cost excluded from lease payments) 2,768 1,081 430 Total lease cost $ 20,972 $ 16,084 $ 9,728 Supplemental Cash Flow and Other Information Related to Leases: Finance lease - operating cash flows $ 56 $ 42 $ — Finance lease - financing cash flows 427 255 — Operating lease - operating cash flows (fixed payments) 16,435 12,876 7,725 Operating lease - operating cash flows (net change asset/liability) (12,790) (9,123) 1,457 New ROU assets - operating leases 9,623 43,583 10,239 New ROU assets - finance leases — 5,374 — Weighted - average remaining lease term (years) - finance leases 6.41 7.40 — Weighted - average remaining lease term (years) - operating leases 10.95 11.51 14.14 Weighted - average discount rate - finance leases 1.7% 1.7% — Weighted - average discount rate - operating leases 3.2% 3.3% 3.9% Operating lease payments due: 2022 $ 15,215 2023 14,510 2024 13,340 2025 11,932 2026 11,468 Thereafter 73,647 Total undiscounted cash flows 140,112 Discount on cash flows (24,198) Total operating lease liabilities $ 115,914 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments with Off-Balance Sheet Risk | |
Schedule of financial instruments of the subsidiary, whose contract amounts represent credit risk | Year Ended December 31, (Dollars in thousands) 2021 2020 Commitments to extend credit $ 7,416,311 $ 5,929,845 Standby letters of credit and financial guarantees 71,824 76,507 $ 7,488,135 $ 6,006,352 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021: Assets Derivative financial instruments $ 414,742 $ — $ 414,742 $ — Loans held for sale 191,723 — 191,723 — Trading securities 77,689 — 77,689 — Securities available for sale: U.S. Government agencies 97,117 — 97,117 — Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,831,039 — 1,831,039 — Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 725,995 — 725,995 — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,207,241 — 1,207,241 — State and municipal obligations 812,689 — 812,689 — Small Business Administration loan-backed securities 500,663 — 500,663 — Corporate securities 18,734 — 18,734 — Total securities available for sale 5,193,478 — 5,193,478 — Mortgage servicing rights 65,620 — — 65,620 $ 5,943,252 $ — $ 5,877,632 $ 65,620 Liabilities Derivative financial instruments $ 410,137 $ — $ 410,137 $ — December 31, 2020: Assets Derivative financial instruments $ 813,899 $ — $ 813,899 $ — Loans held for sale 290,467 — 290,467 — Trading securities 10,674 — 10,674 — Securities available for sale: U.S. Government agencies 29,256 — 29,256 — Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 1,367,132 — 1,367,132 — Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises 755,551 — 755,551 — Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises 240,108 — 240,108 — State and municipal obligations 520,039 — 520,039 — Small Business Administration loan-backed securities 404,884 — 404,884 — Corporate securities 13,702 — 13,702 — Total securities available for sale 3,330,672 — 3,330,672 — Mortgage servicing rights 43,820 — — 43,820 $ 4,489,532 $ — $ 4,445,712 $ 43,820 Liabilities Derivative financial instruments $ 804,832 $ — $ 804,832 $ — |
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, 2021 $ 43,820 $ — Servicing assets that resulted from transfers of financial assets 26,733 — Changes in fair value due to valuation inputs or assumptions 4,932 — Changes in fair value due to decay (9,865) — Fair value , December 31, 2021 $ 65,620 $ — Fair value, January 1, 2020 $ 30,525 $ — Servicing assets that resulted from transfers of financial assets 28,456 — Changes in fair value due to valuation inputs or assumptions (6,991) — Changes in fair value due to decay (8,170) — Fair value, December 31, 2020 $ 43,820 $ — |
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, 2021: OREO $ 2,736 $ — $ — $ 2,736 Bank property held for sale 9,578 — — 9,578 Individually evaluated loans 20,802 — — 20,802 December 31, 2020: OREO $ 11,914 $ — $ — $ 11,914 Bank property held for sale 36,006 — — 36,006 Individually evaluated loans 17,609 — — 17,609 |
Schedule of quantitative information about level 3 fair value measurements | Weighted Average December 31, December 31, Valuation Technique Unobservable Input 2021 2020 Nonrecurring measurements: Individually evaluated loans Discounted appraisals and discounted cash flows Collateral discounts 9 % 5 % OREO and premises held for sale Discounted appraisals Collateral discounts and estimated costs to sell 24 % 14 % |
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, 2021 Financial assets: Cash and cash equivalents $ 6,843,147 $ 6,843,147 $ 6,843,147 $ — $ — Trading securities 77,689 77,689 — 77,689 — Investment securities 7,173,947 7,132,110 160,568 6,971,542 — Loans held for sale 191,723 191,723 — 191,723 — Loans, net of allowance for credit losses 23,626,359 23,921,372 — — 23,921,372 Accrued interest receivable 90,069 90,069 — 19,241 70,828 Mortgage servicing rights 65,620 65,620 — — 65,620 Interest rate swap - non-designated hedge 408,776 408,776 — 408,776 — Other derivative financial instruments (mortgage banking related) 5,966 5,966 — 5,966 — Financial liabilities: Deposits 35,054,829 35,050,516 — 35,050,516 — Federal funds purchased and securities sold under agreements to repurchase 781,239 781,239 — 781,239 — Other borrowings 327,066 334,640 — 334,640 — Accrued interest payable 3,345 3,345 — 3,345 — Interest rate swap - non-designated hedge 410,137 410,137 — 410,137 — Off balance sheet financial instruments: Commitments to extend credit — 93,501 — 93,501 — December 31, 2020 Financial assets: Cash and cash equivalents $ 4,609,255 $ 4,609,255 $ 4,609,255 $ — $ — Trading securities 10,674 10,674 — 10,674 — Investment securities 4,446,657 4,448,300 160,443 4,287,857 — Loans held for sale 290,467 290,467 — 290,467 — Loans, net of allowance for credit losses 24,206,825 24,757,859 — — 24,757,859 Accrued interest receivable 107,601 107,601 — 12,952 94,649 Mortgage servicing rights 43,820 43,820 — — 43,820 Interest rate swap - non-designated hedge 802,763 802,763 — 802,763 — Other derivative financial instruments (mortgage banking related) 11,136 11,136 — 11,136 — Financial liabilities: Deposits 30,693,882 30,719,416 — 30,719,416 — Federal funds purchased and securities sold under agreements to repurchase 779,666 779,666 — 779,666 — Other borrowings 390,179 386,126 — 386,126 — Accrued interest payable 7,103 7,103 — 7,103 — Interest rate swap - non-designated hedge 804,832 804,832 — 804,832 — Off balance sheet financial instruments: Commitments to extend credit — 136,726 — 136,726 — |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Matters | |
Schedule of actual and required capital ratios | Required to be Minimum Capital Considered Well Actual Required - Basel III Capitalized (Dollars in thousands) Amount Ratio Capital Amount Ratio Capital Amount Ratio December 31, 2021: Common equity Tier 1 to risk-weighted assets: Consolidated $ 3,201,644 11.75 % $ 1,906,831 7.00 % $ 1,770,629 6.50 % SouthState Bank (the Bank) 3,431,069 12.62 % 1,902,954 7.00 % 1,767,029 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 3,201,644 11.75 % 2,315,438 8.50 % 2,179,236 8.00 % SouthState Bank (the Bank) 3,431,069 12.62 % 2,310,730 8.50 % 2,174,804 8.00 % Total capital to risk-weighted assets: Consolidated 3,692,674 13.56 % 2,860,247 10.50 % 2,724,045 10.00 % SouthState Bank (the Bank) 3,594,099 13.22 % 2,854,431 10.50 % 2,718,505 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 3,201,644 8.05 % 1,590,045 4.00 % 1,987,556 5.00 % SouthState Bank (the Bank) 3,431,069 8.65 % 1,587,212 4.00 % 1,984,015 5.00 % December 31, 2020: Common equity Tier 1 to risk-weighted assets: Consolidated $ 3,010,174 11.77 % $ 1,789,977 7.00 % $ 1,662,122 6.50 % SouthState Bank (the Bank) 3,157,098 12.39 % 1,784,113 7.00 % 1,656,677 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 3,010,174 11.77 % 2,173,544 8.50 % 2,045,688 8.00 % SouthState Bank (the Bank) 3,157,098 12.39 % 2,166,423 8.50 % 2,038,987 8.00 % Total capital to risk-weighted assets: Consolidated 3,642,039 14.24 % 2,684,966 10.50 % 2,557,110 10.00 % SouthState Bank (the Bank) 3,397,463 13.33 % 2,676,170 10.50 % 2,548,733 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 3,010,174 8.27 % 1,455,139 4.00 % 1,818,924 5.00 % SouthState Bank (the Bank) 3,157,098 8.71 % 1,450,604 4.00 % 1,813,255 5.00 % |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Statements of Parent Company | |
Schedule of condensed balance sheet | December 31, (Dollars in thousands) 2021 2020 ASSETS Cash $ 81,051 $ 131,522 Investment in subsidiaries 5,039,776 4,802,993 Other assets 10,556 108,086 Total assets $ 5,131,383 $ 5,042,601 LIABILITIES AND SHAREHOLDERS’ EQUITY Corporate and subordinated debentures $ 327,066 $ 390,179 Other Liabilities 1,377 4,542 Shareholders’ equity 4,802,940 4,647,880 Total liabilities and shareholders’ equity $ 5,131,383 $ 5,042,601 |
Schedule of condensed statements of income | Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Income: Dividends from subsidiaries $ 200,083 $ 90,404 $ 214,852 Operating income 25 52 5,386 Total income 200,108 90,456 220,238 Operating expenses 40,727 45,574 15,409 Income before income tax benefit and equity in undistributed earnings of subsidiaries 159,381 44,882 204,829 Applicable income tax benefit 9,053 8,960 1,883 Equity in undistributed earnings of subsidiaries (excess distribution) 307,109 66,790 (20,229) Net income available to common shareholders $ 475,543 $ 120,632 $ 186,483 |
Schedule of condensed statements of cash flows | Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Cash flows from operating activities: Net income $ 475,543 $ 120,632 $ 186,483 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,382 1,528 666 Share-based compensation 25,721 23,316 8,839 Extinguishment of debt cost 11,706 — — Gain on sale of securities available for sale — — (5,366) Decrease (increase) in other assets 5,690 (11,710) (159) Decrease in other liabilities (3,648) (12,323) (959) Undistributed earnings of subsidiaries (307,109) (66,790) 20,229 Net cash provided by operating activities 209,285 54,653 209,733 Cash flows from investing activities: Proceeds from sales and calls of other investment securities — — 5,366 Repayment of investments in and advances to subsidiaries 93,591 163,000 — Net cash inflow from acquisitions — 19,650 — Net cash provided by investing activities 93,591 182,650 5,366 Cash flows from financing activities: Repayment of other borrowings (75,878) — — Common stock issuance 2,384 1,537 1,394 Common stock repurchased (147,421) (32,431) (159,431) Dividends paid on common stock (135,337) (98,256) (57,696) Stock options exercised 2,905 1,681 1,230 Net cash used in financing activities (353,347) (127,469) (214,503) Net (decrease) increase in cash and cash equivalents (50,471) 109,834 596 Cash and cash equivalents at beginning of period 131,522 21,688 21,092 Cash and cash equivalents at end of period $ 81,051 $ 131,522 $ 21,688 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Financial Instruments | |
Derivative financial instruments summary | December 31, 2021 December 31, 2020 Balance Sheet Notional Estimated Fair Value Notional Estimated Fair Value (Dollars in thousands) Location Amount Gain Loss Amount Gain Loss Fair value hedge of interest rate risk: Pay fixed rate swap with counterparty Other Liabilities $ 15,716 $ — $ 1,355 $ 16,439 $ — $ 2,086 Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with borrowers Other Assets and Other Liabilities 10,404,605 408,776 69,998 9,324,359 802,717 46 Matched interest rate swaps with counterparty Other Assets and Other Liabilities 10,402,394 — 338,784 9,324,359 46 802,700 Not designated hedges of interest rate risk - mortgage banking activities: Contracts used to hedge mortgage servicing rights Other Assets and Other Liabilities 205,000 1,228 — 149,000 119 — Contracts used to hedge mortgage pipeline Other Assets 324,000 4,738 — 528,500 11,017 — Total derivatives $ 21,351,715 $ 414,742 $ 410,137 $ 19,342,657 $ 813,899 $ 804,832 |
Schedule of notional value of forward sale commitments and the fair value of those obligations along with the fair value of the mortgage pipeline | (Dollars in thousands) 2021 2020 Mortgage loan pipeline $ 264,000 $ 510,730 Expected closures 233,265 411,273 Fair value of mortgage loan pipeline commitments 4,759 15,328 Forward sales commitments 324,000 528,500 Fair value of forward commitments (21) (4,311) |
Loan Servicing, Mortgage Orig_2
Loan Servicing, Mortgage Origination, and Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 2019 Increase (decrease) in fair value of MSRs $ 9,930 $ (7,421) $ (6,976) Decay of MSRs (14,863) (8,793) (4,589) Gain (loss) related to derivatives (4,892) 10,177 3,967 Net effect on statements of income $ (9,825) $ (6,037) $ (7,598) |
Schedule of characteristics and sensitivity analysis of the MSR | December 31, (Dollars in thousands) 2021 2020 Composition of residential loans serviced for others Fixed-rate mortgage loans 99.9 % 99.9 % Adjustable-rate mortgage loans 0.1 % 0.1 % Total 100.0 % 100.0 % Weighted average life 7.35 years 6.10 years Constant Prepayment rate (CPR) 8.4 % 12.3 % Weighted average discount rate 9.0 % 9.0 % Effect on fair value due to change in interest rates 25 basis point increase $ 3,961 $ 2,744 50 basis point increase 7,261 5,520 25 basis point decrease (4,371) (2,497) 50 basis point decrease (8,966) (4,114) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Operations, Segments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)subsidiarysegmentstate | |
Summary of Significant Accounting Policies | |
Number of state where banking service is provided | state | 6 |
Number of unconsolidated subsidiaries | subsidiary | 13 |
Trust preferred securities to be issued | $ | $ 118.6 |
Number of Unconsolidated Subsidiaries, Dissolved | subsidiary | 7 |
Trust preferred securities redeemed | $ | $ 39.9 |
Segments | |
Number of Operating Segments | segment | 1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Concentrations of Credit Risk (Details) - Concentrations of Credit Risk $ in Thousands | Dec. 31, 2021USD ($)item |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold (as a percent) | 25.00% |
Loans. | |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold | $ 860,600 |
Number of credit concentrations for non-acquired credit impaired loans | item | 7 |
Loans. | Loans on hotels and motels | |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold | $ 892,600 |
Loans. | Lessors of nonresidential buildings | |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold | 4,700,000 |
Loans. | Lessors of residential and buildings | |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold | 1,300,000 |
Loans. | Loans on owner occupied office buildings | |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold | 1,800,000 |
Loans. | Other holding companies | |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold | 1,700,000 |
Loans. | Loans secured by jumbo | |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold | 4,100,000 |
Amount loaned | 548,250 |
Loans. | 1 to 4 family owner occupied residential property | |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold | $ 1,600,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Held-to-maturity Securities | $ 1,819,901 | $ 955,542 | |
Interest Receivable | 70,600 | 93,900 | |
Liability Recorded for Expected Credit Losses on Unfunded Commitments | $ 6,400 | ||
Other Assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accrued interest receivable for investment securities | 19,200 | 13,100 | |
Interest Receivable | 70,600 | 93,900 | |
Other Liabilities | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Liability Recorded for Expected Credit Losses on Unfunded Commitments | $ 30,500 | $ 43,400 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2019 | |
Summary of Significant Accounting Policies | |||
Existence of option to extend | true | ||
Renewal term | 23 years | ||
Right to use asset | $ 110,300 | $ 113,400 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net | |
Lease Liability | $ 115,914 | $ 118,300 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities. | Other Liabilities. | |
Minimum | |||
Summary of Significant Accounting Policies | |||
Lease terms | 12 months | ||
Maximum | |||
Summary of Significant Accounting Policies | |||
Lease terms | 24 years | ||
Adjustment for ASU | ASU 2016- 02 | |||
Summary of Significant Accounting Policies | |||
Right to use asset | $ 82,200 | ||
Lease Liability | 82,200 | ||
Adjustments | ASU 2016- 02 | |||
Summary of Significant Accounting Policies | |||
Right to use asset | 82,200 | ||
Lease Liability | $ 82,200 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Intangible assets, Transfer of financial assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets | ||||
Goodwill | $ 1,581,085 | $ 1,581,085 | $ 1,563,942 | $ 1,002,900 |
Impairment Charges | $ 0 | $ 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 | |||
Client list intangibles | ||||
Intangible Assets | ||||
Estimated useful lives of intangibles | 15 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Revenue from Contracts with Customers (Details) $ in Thousands, contract in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)contract | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Summary of Significant Accounting Policies | |||
Number of active contracts | contract | 1.1 | ||
Transferred at Point in Time | |||
Summary of Significant Accounting Policies | |||
Revenue from contract with customers | $ 180,800 | $ 182,800 | $ 104,300 |
Transferred over Time | |||
Summary of Significant Accounting Policies | |||
Revenue from contract with customers | 19,900 | 17,900 | 19,000 |
Interchange and debit card transaction fees | |||
Summary of Significant Accounting Policies | |||
Revenue from contract with customers | 18,000 | 13,700 | 12,600 |
Interchange and debit card transaction fees | Before 606 | |||
Summary of Significant Accounting Policies | |||
Transaction fees | 38,300 | 30,200 | 24,500 |
Network costs | 20,300 | 16,500 | 11,900 |
Trust and investment services income | |||
Summary of Significant Accounting Policies | |||
Revenue from contract with customers | 36,981 | 29,437 | 29,244 |
Deposit account services | |||
Summary of Significant Accounting Policies | |||
Revenue from contract with customers | $ 107,300 | $ 85,700 | $ 76,400 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Accounting Standard Adopted -Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impairment of goodwill | $ 0 | $ 0 | $ 0 | ||
Impairment of other intangible | 0 | ||||
Additional allowance for credit losses for loans | 301,807 | 301,807 | 457,309 | $ 54,400 | $ 56,927 |
Deferred tax assets | 64,964 | 64,964 | 110,946 | ||
Additional reserve for unfunded commitments | 6,400 | ||||
Retained earnings | 997,657 | 997,657 | 657,451 | ||
Adjustments | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Additional allowance for credit losses for loans | 457,309 | 111,365 | |||
ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Additional allowance for credit losses for loans | 54,438 | ||||
Deferred tax assets | 12,639 | ||||
Additional reserve for unfunded commitments | 6,400 | ||||
Retained earnings | $ 44,800 | $ 44,800 | (44,820) | ||
ASU 2016-13 | Adjustments | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Additional allowance for credit losses for loans | $ 109,442 | 56,927 | $ 51,030 | ||
Deferred tax assets | 31,316 | ||||
Retained earnings | $ 679,895 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Impact of ASU (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | |||||
Investment Securities - Available for Sale | $ 5,193,478 | $ 3,330,672 | |||
Investment Securities - Held to Maturity | 1,819,901 | 955,542 | |||
Non - Acquired Loans | 23,928,166 | 24,664,134 | |||
Allowance for Credit Losses on Loans | $ (54,400) | (301,807) | (457,309) | $ (56,927) | |
Deferred Tax Asset | 64,964 | 110,946 | |||
Accrued Interest Receivable - Loans | 70,600 | 93,900 | |||
Liabilities: | |||||
Reserve for Loan Losses - Unfunded Commitments | 301,807 | 457,309 | |||
Equity: | |||||
Retained Earnings | 997,657 | 657,451 | |||
Credit Discount on Acquired Credit Impaired Loans | 3,408 | ||||
Financing Receivable, Allowance for Credit Losses | $ 54,400 | 301,807 | 457,309 | 56,927 | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 22.00% | ||||
Non-acquired loans | |||||
Assets: | |||||
Allowance for Credit Losses on Loans | $ (34,049) | ||||
Equity: | |||||
Financing Receivable, Allowance for Credit Losses | 34,049 | ||||
Acquired loans | |||||
Assets: | |||||
Allowance for Credit Losses on Loans | (16,981) | ||||
Equity: | |||||
Financing Receivable, Allowance for Credit Losses | 16,981 | ||||
Purchased Credit Deteriorated Loans | |||||
Assets: | |||||
Allowance for Credit Losses on Loans | (3,408) | ||||
Equity: | |||||
Financing Receivable, Allowance for Credit Losses | 3,408 | ||||
ASU 2016-13 | |||||
Assets: | |||||
Acquired Loans | 1,723 | ||||
Allowance for Credit Losses on Loans | (54,438) | ||||
Deferred Tax Asset | 12,639 | ||||
Accrued Interest Receivable - Loans | 1,677 | ||||
Liabilities: | |||||
Reserve for Loan Losses - Unfunded Commitments | 6,421 | ||||
Equity: | |||||
Retained Earnings | (44,820) | 44,800 | |||
Financing Receivable, Allowance for Credit Losses | 54,438 | ||||
Other Assets | |||||
Assets: | |||||
Accrued Interest Receivable - Loans | $ 70,600 | 93,900 | |||
Other Assets | ASU 2016-13 | |||||
Assets: | |||||
Accrued Interest Receivable - Loans | 1,677 | ||||
As previously recorded by acquiree | |||||
Assets: | |||||
Allowance for Credit Losses on Loans | (61,991) | $ (55,798) | |||
Equity: | |||||
Financing Receivable, Allowance for Credit Losses | 61,991 | $ 55,798 | |||
As previously recorded by acquiree | ASU 2016-13 | |||||
Assets: | |||||
Investment Securities - Available for Sale | 1,956,047 | ||||
Non - Acquired Loans | 9,252,831 | ||||
Acquired Loans | 2,118,940 | ||||
Allowance for Credit Losses on Loans | (111,365) | ||||
Deferred Tax Asset | 43,955 | ||||
Accrued Interest Receivable - Loans | 30,009 | ||||
Liabilities: | |||||
Reserve for Loan Losses - Unfunded Commitments | 6,756 | ||||
Equity: | |||||
Retained Earnings | 635,075 | ||||
Financing Receivable, Allowance for Credit Losses | 111,365 | ||||
Adjustments | |||||
Assets: | |||||
Allowance for Credit Losses on Loans | (457,309) | (111,365) | |||
Equity: | |||||
Financing Receivable, Allowance for Credit Losses | 457,309 | 111,365 | |||
Adjustments | ASU 2016-13 | |||||
Assets: | |||||
Investment Securities - Available for Sale | 1,956,047 | ||||
Non - Acquired Loans | 9,252,831 | ||||
Acquired Loans | 2,117,209 | ||||
Allowance for Credit Losses on Loans | (56,927) | (109,442) | (51,030) | ||
Deferred Tax Asset | 31,316 | ||||
Accrued Interest Receivable - Loans | 28,332 | ||||
Liabilities: | |||||
Reserve for Loan Losses - Unfunded Commitments | 335 | ||||
Equity: | |||||
Retained Earnings | 679,895 | ||||
Financing Receivable, Allowance for Credit Losses | $ 56,927 | $ 109,442 | $ 51,030 |
Mergers and Acquisitions - Narr
Mergers and Acquisitions - Narrative (Details) $ in Thousands | Jul. 23, 2021 | Feb. 01, 2021USD ($) | Jun. 07, 2020USD ($)shares | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Mergers and Acquisitions | ||||||||
Goodwill | $ 1,563,942 | $ 1,581,085 | $ 1,563,942 | $ 1,002,900 | ||||
Assets | 37,789,873 | 41,960,032 | 37,789,873 | |||||
CSFL | ||||||||
Mergers and Acquisitions | ||||||||
Shares of the common stock in exchange for each share | 0.3001 | |||||||
Number of shares issued as consideration | shares | 37,271,069 | |||||||
Purchase price | $ 2,256,708 | |||||||
Value of the conversion of outstanding stock options and restricted stock | 10,300 | 10,300 | $ 15,500 | |||||
Purchased price decreased | 5,200 | |||||||
Loans at fair value acquired after initial fair value adjustment | 13,000,000 | |||||||
Estimated discount on loans | $ 239,500 | |||||||
Estimated discount on loans (as a percent) | 1.82% | |||||||
Fair value adjustment on loans acquired | $ 29,800 | |||||||
Loans acquired as a percentage of total loans | 113.90% | |||||||
Credit deficiencies that were identified as Purchased Credit Deteriorated ("PCD") loans. | $ 3,100,000 | |||||||
Estimated fair value of intangible asset | 140,862 | |||||||
Goodwill | 562,370 | |||||||
Acquisition costs | 64,400 | 83,000 | ||||||
CSFL | Core deposit intangibles | ||||||||
Mergers and Acquisitions | ||||||||
Estimated fair value of intangible asset | $ 125,900 | |||||||
Estimated economic life of intangible asset | 10 years | |||||||
Duncan-Williams, Inc. | ||||||||
Mergers and Acquisitions | ||||||||
Purchase price | $ 48,300 | |||||||
Goodwill | $ 15,800 | |||||||
Atlantic Capital | ||||||||
Mergers and Acquisitions | ||||||||
Shares of the common stock in exchange for each share | 0.36 | |||||||
Assets | 3,800 | |||||||
Loans | 2,400 | |||||||
Deposits | 3,300 | |||||||
Subsequent Fair Value Adjustments | CSFL | ||||||||
Mergers and Acquisitions | ||||||||
Estimated fair value of intangible asset | $ 10,000 | $ 10,000 | ||||||
Goodwill | $ (38,113) | $ 562,400 | $ 38,100 | $ 562,400 |
Mergers and Acquisitions- CSFL
Mergers and Acquisitions- CSFL (Details) - USD ($) | Feb. 01, 2021 | Jun. 07, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | ||||||
Goodwill | $ 1,581,085,000 | $ 1,563,942,000 | $ 1,002,900,000 | |||
Consideration: | ||||||
Additional premium paid after three years | $ 8,000,000 | |||||
Additional information | ||||||
Reversal of CSFL's ending allowance for credit losses | $ 16,899,000 | $ 14,602,000 | ||||
Deferred tax assets related to fair value adjustments with effective tax rate | 21.00% | 21.00% | 21.00% | |||
Proforma amounts | ||||||
Total revenues (net interest income plus noninterest income) | $ 1,522,434,000 | |||||
Net interest income | 1,061,233,000 | |||||
Net adjusted income available to the common shareholder | $ 329,827,000 | |||||
EPS - basic | $ 4.66 | |||||
EPS - diluted | $ 4.64 | |||||
As previously recorded by acquiree | ||||||
Additional information | ||||||
Reversal of CSFL's ending allowance for credit losses | $ 9,775,000 | |||||
CSFL | ||||||
Assets | ||||||
Cash and cash equivalents | $ 2,566,450,000 | |||||
Investment securities | 1,193,910,000 | |||||
Loans held for sale | 453,578,000 | |||||
Loans, net of allowance and mark | 12,950,583,000 | |||||
Premises and equipment | 313,435,000 | |||||
Intangible assets | 140,862,000 | |||||
OREO and repossessed assets | 10,009,000 | |||||
Bank owned life insurance | 333,053,000 | |||||
Deferred tax asset | 37,622,000 | |||||
Other assets | 965,386,000 | |||||
Total assets | 18,964,888,000 | |||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | ||||||
Noninterest-bearing | 5,291,443,000 | |||||
Interest-bearing | 10,332,072,000 | |||||
Total deposits | 15,623,515,000 | |||||
Federal funds purchased and securities sold under agreements to repurchase | 401,546,000 | |||||
Other borrowings | 271,499,000 | |||||
Other liabilities | 973,990,000 | |||||
Total liabilities | 17,270,550,000 | |||||
Net identifiable assets acquired over (under) liabilities assumed | 1,694,338,000 | |||||
Goodwill | 562,370,000 | |||||
Net assets acquired over liabilities assumed | $ 2,256,708,000 | |||||
Consideration: | ||||||
Number of shares issued as consideration | 37,271,069 | |||||
Purchase price per share of the Company's common stock | $ 60.27 | |||||
Company common stock issued ($2,246,327) and cash exchanged for fractional shares ($74) | $ 2,246,401,000 | |||||
Stock option conversion | 2,900,000 | |||||
Restricted stock conversion | 7,407,000 | |||||
Value of common stock issued for fractional shares | 2,246,327,000 | |||||
Price per fractional share | 74,000 | |||||
Cash paid for stock options outstanding | 2,900,000 | |||||
Fair value of total consideration transferred | 2,256,708,000 | |||||
Noncash Merger Related Costs | 2,900,000 | |||||
Merger-related charges/costs | $ 64,400,000 | $ 83,000,000 | ||||
Additional information | ||||||
Reversal of CSFL's existing fair value adjustments | 40,700,000 | |||||
Adjustment to record securities at fair value (premium) | 46,200,000 | |||||
Reclassification of securities held as HTM to AFS | 175,700,000 | |||||
Total mark of the loan portfolio | $ 269,100,000 | |||||
Total mark of the loan portfolio (as a percent) | 2.04% | |||||
Credit mark of the loan portfolio | $ 259,700,000 | |||||
Credit mark of the loan portfolio (as a percent) | 1.97% | |||||
Reversal of CSFL's ending allowance for credit losses | $ 158,200,000 | |||||
Fair value adjustments of allowance for credit losses | 62,600,000 | |||||
MTM adjustment on leased assets | 4,000,000 | |||||
Deminimus fixed assets written off | $ 1,600,000 | |||||
Core deposit intangible from a third party valuation (as a percent) | 1.28% | |||||
Core deposit intangible from a third party valuation | $ 125,900,000 | |||||
Existing core deposit intangible from prior transactions that was reversed | 84,900,000 | |||||
Existing goodwill from prior transactions that was reversed | 1,200,000 | |||||
Reversal of prior valuation reserves | 878,000 | |||||
New valuation reserves | $ 1,700,000 | |||||
Deferred tax assets related to fair value adjustments with effective tax rate | 22.00% | |||||
Deferred tax liability | $ 7,800,000 | |||||
Fair value adjustment of bank property held for sale | 4,400,000 | |||||
Fair value adjustment of lease receivable | 116,000 | |||||
Fair value adjustment of interest receivable | 501,000 | |||||
Fair value negative adjustment for investment in low income housing | 3,300,000 | |||||
Estimated premium for fixed maturity time deposits | 20,200,000 | |||||
Reversal of existing CSFL fair value adjustments related to time deposit marks from other merger transactions | 546,000 | |||||
Discount on TRUPs from a third party valuation | 12,500,000 | |||||
Reversal of the existing CSFL discount on TRUPs and other debt | 5,100,000 | |||||
Reversal of an existing unfunded commitment reserve at purchase date | 7,100,000 | |||||
Fair value adjustment to increase lease liabilities associated with rental facilities | 2,500,000 | |||||
Fair value adjustments to employee benefit plans | 5,200,000 | |||||
Merger-related charges/costs | 64,400,000 | 83,000,000 | ||||
CSFL | As Recorded by CSFL | ||||||
Assets | ||||||
Cash and cash equivalents | 2,566,450,000 | |||||
Investment securities | 1,188,403,000 | |||||
Loans held for sale | 453,578,000 | |||||
Loans, net of allowance and mark | 12,969,091,000 | |||||
Premises and equipment | 308,150,000 | |||||
Intangible assets | 1,294,211,000 | |||||
OREO and repossessed assets | 10,849,000 | |||||
Bank owned life insurance | 333,053,000 | |||||
Deferred tax asset | 54,123,000 | |||||
Other assets | 967,059,000 | |||||
Total assets | 20,144,967,000 | |||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | ||||||
Noninterest-bearing | 5,291,443,000 | |||||
Interest-bearing | 10,312,370,000 | |||||
Total deposits | 15,603,813,000 | |||||
Federal funds purchased and securities sold under agreements to repurchase | 401,546,000 | |||||
Other borrowings | 278,900,000 | |||||
Other liabilities | 977,725,000 | |||||
Total liabilities | 17,261,984,000 | |||||
Net identifiable assets acquired over (under) liabilities assumed | 2,882,983,000 | |||||
Net assets acquired over liabilities assumed | 2,882,983,000 | |||||
CSFL | Initial Fair Value Adjustments | ||||||
Assets | ||||||
Investment securities | 5,507,000 | |||||
Loans, net of allowance and mark | (48,342,000) | |||||
Premises and equipment | 2,392,000 | |||||
Intangible assets | (1,163,349,000) | |||||
OREO and repossessed assets | (791,000) | |||||
Deferred tax asset | (8,681,000) | |||||
Other assets | (604,000) | |||||
Total assets | (1,213,868,000) | |||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | ||||||
Interest-bearing | 19,702,000 | |||||
Total deposits | 19,702,000 | |||||
Other borrowings | (7,401,000) | |||||
Other liabilities | (4,592,000) | |||||
Total liabilities | 7,709,000 | |||||
Net identifiable assets acquired over (under) liabilities assumed | (1,221,577,000) | |||||
Goodwill | 600,483,000 | |||||
Net assets acquired over liabilities assumed | (621,094,000) | |||||
CSFL | Subsequent Fair Value Adjustments | ||||||
Assets | ||||||
Loans, net of allowance and mark | 29,834,000 | |||||
Premises and equipment | 2,893,000 | |||||
Intangible assets | 10,000,000 | $ 10,000,000 | ||||
OREO and repossessed assets | (49,000) | |||||
Deferred tax asset | (7,820,000) | |||||
Other assets | (1,069,000) | |||||
Total assets | 33,789,000 | |||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | ||||||
Other liabilities | 857,000 | |||||
Total liabilities | 857,000 | |||||
Net identifiable assets acquired over (under) liabilities assumed | 32,932,000 | |||||
Goodwill | (38,113,000) | $ 38,100,000 | $ 562,400,000 | |||
Net assets acquired over liabilities assumed | $ (5,181,000) | |||||
Additional information | ||||||
Deferred tax assets related to fair value adjustments with effective tax rate | 23.78% |
Securities - Amortized cost and
Securities - Amortized cost and fair value for available for sale securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
investment securities held-to-maturity | ||
Amortized cost | $ 1,819,901 | $ 955,542 |
Gross Unrealized Gains | 318 | 2,764 |
Gross Unrealized Losses | (42,155) | (1,123) |
Fair Value | 1,778,064 | 957,183 |
Investment securities available for sale | ||
Amortized cost | 5,221,296 | 3,268,037 |
Gross Unrealized Gains | 35,980 | 66,800 |
Gross Unrealized Losses | (63,798) | (4,165) |
Fair Value | 5,193,478 | 3,330,672 |
U.S. Government agencies | ||
investment securities held-to-maturity | ||
Amortized cost | 112,913 | 25,000 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (2,627) | |
Fair Value | 110,286 | 25,001 |
Investment securities available for sale | ||
Amortized cost | 98,882 | 29,882 |
Gross Unrealized Gains | 16 | |
Gross Unrealized Losses | (1,765) | (642) |
Fair Value | 97,117 | 29,256 |
Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
investment securities held-to-maturity | ||
Amortized cost | 1,120,104 | 632,269 |
Gross Unrealized Gains | 14 | 1,827 |
Gross Unrealized Losses | (24,278) | (1,032) |
Fair Value | 1,095,840 | 633,064 |
Investment securities available for sale | ||
Amortized cost | 1,851,700 | 1,351,506 |
Gross Unrealized Gains | 5,324 | 16,657 |
Gross Unrealized Losses | (25,985) | (1,031) |
Fair Value | 1,831,039 | 1,367,132 |
Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises | ||
investment securities held-to-maturity | ||
Amortized cost | 174,178 | 75,767 |
Gross Unrealized Gains | 405 | |
Gross Unrealized Losses | (4,937) | |
Fair Value | 169,241 | 76,172 |
Investment securities available for sale | ||
Amortized cost | 730,949 | 739,797 |
Gross Unrealized Gains | 5,957 | 16,579 |
Gross Unrealized Losses | (10,911) | (825) |
Fair Value | 725,995 | 755,551 |
Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
investment securities held-to-maturity | ||
Amortized cost | 350,116 | 174,506 |
Gross Unrealized Gains | 304 | 300 |
Gross Unrealized Losses | (8,021) | (91) |
Fair Value | 342,399 | 174,715 |
Investment securities available for sale | ||
Amortized cost | 1,220,233 | 229,219 |
Gross Unrealized Gains | 5,438 | 10,939 |
Gross Unrealized Losses | (18,430) | (50) |
Fair Value | 1,207,241 | 240,108 |
State and municipal obligations | ||
Investment securities available for sale | ||
Amortized cost | 798,211 | 502,575 |
Gross Unrealized Gains | 16,697 | 17,491 |
Gross Unrealized Losses | (2,219) | (27) |
Fair Value | 812,689 | 520,039 |
Small Business Administration loan-backed securities | ||
investment securities held-to-maturity | ||
Amortized cost | 62,590 | 48,000 |
Gross Unrealized Gains | 231 | |
Gross Unrealized Losses | (2,292) | |
Fair Value | 60,298 | 48,231 |
Investment securities available for sale | ||
Amortized cost | 502,812 | 401,496 |
Gross Unrealized Gains | 2,330 | 4,978 |
Gross Unrealized Losses | (4,479) | (1,590) |
Fair Value | 500,663 | 404,884 |
Corporate securities. | ||
Investment securities available for sale | ||
Amortized cost | 18,509 | 13,562 |
Gross Unrealized Gains | 234 | 140 |
Gross Unrealized Losses | (9) | |
Fair Value | $ 18,734 | $ 13,702 |
Securities - Carrying value of
Securities - Carrying value of other investment securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other investment securities | ||
Carrying Value | $ 160,568 | $ 160,443 |
Impairment on other investment securities | 0 | |
Federal Home Loan Bank stock | ||
Other investment securities | ||
Carrying Value | 16,283 | 15,083 |
Federal Reserve Bank Stock | ||
Other investment securities | ||
Carrying Value | 129,716 | 129,871 |
Investment in unconsolidated subsidiaries | ||
Other investment securities | ||
Carrying Value | 3,563 | 4,941 |
Other nonmarketable investment securities | ||
Other investment securities | ||
Carrying Value | $ 11,006 | $ 10,548 |
Securities - Amortized cost a_2
Securities - Amortized cost and fair value by contractual maturity (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amortized Cost | ||||
Due after five years through ten years | $ 140,439,000 | |||
Due after ten years | 1,679,462,000 | |||
Total | 1,819,901,000 | $ 955,542,000 | ||
Fair Value | ||||
Due after five years through ten years | 135,931,000 | |||
Due after ten years | 1,642,133,000 | |||
Fair Value | 1,778,064,000 | 957,183,000 | ||
Amortized Cost | ||||
Due in one year or less | 7,263,000 | |||
Due after one year through five years | 132,157,000 | |||
Due after five years through ten years | 920,768,000 | |||
Due after ten years | 4,161,108,000 | |||
Amortized Cost | 5,221,296,000 | 3,268,037,000 | ||
Fair Value | ||||
Due in one year or less | 7,296,000 | |||
Due after one year through five years | 133,418,000 | |||
Due after five years through ten years | 919,669,000 | |||
Due after ten years | 4,133,095,000 | |||
Fair Value | 5,193,478,000 | 3,330,672,000 | ||
Information with respect to sales of available-for-sale securities | ||||
Sale proceeds | 151,314,000 | 100,754,000 | $ 242,733,000 | |
Gross realized gains | 750,000 | 662,000 | 6,030,000 | |
Gross realized losses | (648,000) | (612,000) | (3,319,000) | |
Net realized gain | 102,000 | 50,000 | 2,711,000 | |
Information with respect to sales of held-to-maturity | ||||
Proceeds from sales of investment securities held to maturity | $ 0 | $ 0 | 0 | |
VISA Class B Shares | ||||
Information with respect to sales of available-for-sale securities | ||||
Net realized gain | $ 5,400,000 | $ 2,700,000 |
Securities - Securities with gr
Securities - Securities with gross unrealized losses (Details) $ in Thousands | Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($) |
Investment Securities | ||
Number of securities with gross unrealized loss | item | 296 | |
Securities Held to Maturity, Gross Unrealized Losses | ||
Less Than Twelve Months | $ 31,633 | $ 1,123 |
Twelve Months or More | 10,522 | |
Securities Held to Maturity, Fair Value | ||
Less Than Twelve Months | 1,316,106 | 240,591 |
Twelve Months or More | 307,277 | |
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 46,537 | 3,144 |
Twelve Months or More | 17,261 | 1,021 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 2,935,314 | 542,297 |
Twelve Months or More | 462,192 | 105,125 |
U.S. Government agencies | ||
Securities Held to Maturity, Gross Unrealized Losses | ||
Less Than Twelve Months | 1,745 | |
Twelve Months or More | 882 | |
Securities Held to Maturity, Fair Value | ||
Less Than Twelve Months | 86,168 | |
Twelve Months or More | 24,118 | |
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 529 | 642 |
Twelve Months or More | 1,236 | |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 73,353 | 24,358 |
Twelve Months or More | 23,763 | |
Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Securities Held to Maturity, Gross Unrealized Losses | ||
Less Than Twelve Months | 18,768 | 1,032 |
Twelve Months or More | 5,510 | |
Securities Held to Maturity, Fair Value | ||
Less Than Twelve Months | 868,327 | 213,146 |
Twelve Months or More | 184,819 | |
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 17,381 | 1,031 |
Twelve Months or More | 8,604 | |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 1,274,934 | 260,411 |
Twelve Months or More | 221,435 | |
Residential collateralized mortgage-obligations issued by U.S. government agencies or sponsored enterprises | ||
Securities Held to Maturity, Gross Unrealized Losses | ||
Less Than Twelve Months | 4,937 | |
Securities Held to Maturity, Fair Value | ||
Less Than Twelve Months | 169,240 | |
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 10,911 | 825 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 432,300 | 140,333 |
Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Securities Held to Maturity, Gross Unrealized Losses | ||
Less Than Twelve Months | 4,902 | 91 |
Twelve Months or More | 3,119 | |
Securities Held to Maturity, Fair Value | ||
Less Than Twelve Months | 154,963 | 27,445 |
Twelve Months or More | 75,450 | |
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 13,120 | 46 |
Twelve Months or More | 5,310 | 4 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 846,581 | 13,594 |
Twelve Months or More | 98,106 | 871 |
State and municipal obligations | ||
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 1,867 | 27 |
Twelve Months or More | 352 | |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 123,987 | 8,620 |
Twelve Months or More | 8,579 | |
Small Business Administration loan-backed securities | ||
Securities Held to Maturity, Gross Unrealized Losses | ||
Less Than Twelve Months | 1,281 | |
Twelve Months or More | 1,011 | |
Securities Held to Maturity, Fair Value | ||
Less Than Twelve Months | 37,408 | |
Twelve Months or More | 22,890 | |
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 2,720 | 573 |
Twelve Months or More | 1,759 | 1,017 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 179,168 | 94,981 |
Twelve Months or More | 110,309 | $ 104,254 |
Corporate securities. | ||
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 9 | |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | $ 4,991 |
Securities - Additional disclos
Securities - Additional disclosures (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Additional disclosures | ||
Carrying value of investment securities pledged to secure public funds deposits and for other purposes required and permitted by law | $ 2,100 | $ 2,100 |
Carrying amount of the securities pledged to collateralize repurchase agreements | $ 471.3 | $ 515.9 |
Securities - Trading Securities
Securities - Trading Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investment Securities | ||
Trading securities | $ 77,689 | $ 10,674 |
U.S. Government agencies | ||
Investment Securities | ||
Trading securities | 5,154 | |
Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Investment Securities | ||
Trading securities | 6,853 | |
Other residential mortgage issued or guaranteed by U.S. government agencies or sponsored enterprises | ||
Investment Securities | ||
Trading securities | 12,315 | |
Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Investment Securities | ||
Trading securities | 29,667 | |
State and municipal obligations | ||
Investment Securities | ||
Trading securities | 20,798 | $ 10,674 |
Other debt securities | ||
Investment Securities | ||
Trading securities | $ 2,902 |
Loans - Summary of loans (Detai
Loans - Summary of loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Summary of Loans | ||
Total loans | $ 23,928,166 | $ 24,664,134 |
Less allowance for credit losses | (301,807) | (457,309) |
Loans, net | 23,626,359 | 24,206,825 |
Deferred fees costs | 15,900 | 35,600 |
Unamortized Discounts | 68,000 | 97,700 |
Accrued interest receivable (AIR) | 70,600 | 93,900 |
Acquired credit impaired loans | ||
Summary of Loans | ||
Total loans | 361,846 | |
Construction and land development | Acquired credit impaired loans | ||
Summary of Loans | ||
Total loans | 25,032 | |
Commercial and industrial | Acquired credit impaired loans | ||
Summary of Loans | ||
Total loans | 7,029 | |
Consumer loans | Acquired credit impaired loans | ||
Summary of Loans | ||
Total loans | 35,488 | |
Commercial loans | Construction and land development | ||
Summary of Loans | ||
Total loans | 2,029,216 | 1,890,846 |
Commercial loans | Commercial non-owner occupied | ||
Summary of Loans | ||
Total loans | 6,735,699 | 6,152,246 |
Commercial loans | Commercial non-owner occupied real estate | ||
Summary of Loans | ||
Total loans | 4,970,116 | 4,832,697 |
Commercial loans | Real estate | Acquired credit impaired loans | ||
Summary of Loans | ||
Total loans | 130,938 | |
Commercial loans | Commercial and industrial | ||
Summary of Loans | ||
Total loans | 3,761,133 | 5,046,310 |
Commercial loans | Other income producing property | ||
Summary of Loans | ||
Total loans | 696,804 | 854,900 |
Consumer portfolio loans | Consumer Owner Occupied Loans | ||
Summary of Loans | ||
Total loans | 3,638,364 | 3,682,667 |
Consumer portfolio loans | Home equity loans | ||
Summary of Loans | ||
Total loans | 1,168,594 | 1,292,141 |
Consumer portfolio loans | Real estate | Acquired credit impaired loans | ||
Summary of Loans | ||
Total loans | 163,359 | |
Consumer portfolio loans | Consumer loans | ||
Summary of Loans | ||
Total loans | 904,657 | 894,334 |
Consumer portfolio loans | Other loans | ||
Summary of Loans | ||
Total loans | $ 23,583 | $ 17,993 |
Loans - Credit risk profile by
Loans - Credit risk profile by risk grade of commercial and consumer loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | $ 6,913,060 | $ 6,483,424 |
Amortized Cost Basis by Origination Year - 2020 | 3,765,913 | 4,366,629 |
Amortized Cost Basis by Origination Year - 2019 | 3,187,599 | 3,114,427 |
Amortized Cost Basis by Origination Year - 2018 | 2,026,918 | 2,432,491 |
Amortized Cost Basis by Origination Year - 2017 | 1,575,244 | 2,027,571 |
Amortized Cost Basis by Origination Year - Prior | 4,106,997 | 4,529,176 |
Amortized Cost Basis by Origination Year - Revolving | 2,352,435 | 1,710,416 |
Total loans | 23,928,166 | 24,664,134 |
30 days past due | ||
Loans | ||
Total loans | 68,136 | 20,185 |
60 days past due | ||
Loans | ||
Total loans | 33,250 | 29,380 |
90 days past due | ||
Loans | ||
Total loans | 4,863 | 11,651 |
Construction and land development | ||
Loans | ||
Total loans | 2,029,216 | 1,890,846 |
Construction and land development | 30 days past due | ||
Loans | ||
Total loans | 1,176 | 520 |
Construction and land development | 60 days past due | ||
Loans | ||
Total loans | 59 | 1,142 |
Construction and land development | 90 days past due | ||
Loans | ||
Total loans | 43 | |
Commercial non-owner occupied | ||
Loans | ||
Total loans | 6,735,699 | 6,152,246 |
Commercial non-owner occupied | 30 days past due | ||
Loans | ||
Total loans | 3,591 | 188 |
Commercial non-owner occupied | 60 days past due | ||
Loans | ||
Total loans | 2,110 | 372 |
Commercial non-owner occupied | 90 days past due | ||
Loans | ||
Total loans | 96 | 471 |
Commercial owner occupied real estate loan | ||
Loans | ||
Total loans | 4,970,116 | 4,832,697 |
Commercial owner occupied real estate loan | 30 days past due | ||
Loans | ||
Total loans | 2,756 | 2,900 |
Commercial owner occupied real estate loan | 60 days past due | ||
Loans | ||
Total loans | 1,732 | 840 |
Commercial owner occupied real estate loan | 90 days past due | ||
Loans | ||
Total loans | 626 | |
Commercial and industrial | ||
Loans | ||
Total loans | 3,761,133 | 5,046,310 |
Commercial and industrial | 30 days past due | ||
Loans | ||
Total loans | 50,451 | 10,979 |
Commercial and industrial | 60 days past due | ||
Loans | ||
Total loans | 26,639 | 22,089 |
Commercial and industrial | 90 days past due | ||
Loans | ||
Total loans | 3,991 | 10,864 |
Other income producing property | ||
Loans | ||
Total loans | 696,804 | 854,900 |
Other income producing property | 30 days past due | ||
Loans | ||
Total loans | 879 | 897 |
Other income producing property | 60 days past due | ||
Loans | ||
Total loans | 424 | 338 |
Other income producing property | 90 days past due | ||
Loans | ||
Total loans | 106 | 278 |
Consumer Owner Occupied Loans | ||
Loans | ||
Total loans | 3,638,364 | 3,682,667 |
Consumer Owner Occupied Loans | 30 days past due | ||
Loans | ||
Total loans | 4,046 | 1,165 |
Consumer Owner Occupied Loans | 60 days past due | ||
Loans | ||
Total loans | 533 | 3,294 |
Consumer Owner Occupied Loans | 90 days past due | ||
Loans | ||
Total loans | 34 | |
Home equity loans | ||
Loans | ||
Total loans | 1,168,594 | 1,292,141 |
Home equity loans | 30 days past due | ||
Loans | ||
Total loans | 2,565 | 1,805 |
Home equity loans | 60 days past due | ||
Loans | ||
Total loans | 913 | 481 |
Consumer loans | ||
Loans | ||
Total loans | 904,657 | 894,334 |
Consumer loans | 30 days past due | ||
Loans | ||
Total loans | 2,672 | 1,718 |
Consumer loans | 60 days past due | ||
Loans | ||
Total loans | 840 | 818 |
Consumer loans | 90 days past due | ||
Loans | ||
Total loans | 1 | 4 |
Other loans | ||
Loans | ||
Total loans | 23,583 | 17,993 |
Other loans | 30 days past due | ||
Loans | ||
Total loans | 13 | |
Other loans | 60 days past due | ||
Loans | ||
Total loans | 6 | |
Commercial loans | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 4,964,031 | 5,034,620 |
Amortized Cost Basis by Origination Year - 2020 | 2,667,731 | 3,359,776 |
Amortized Cost Basis by Origination Year - 2019 | 2,609,226 | 2,442,301 |
Amortized Cost Basis by Origination Year - 2018 | 1,688,003 | 1,890,485 |
Amortized Cost Basis by Origination Year - 2017 | 1,292,534 | 1,618,741 |
Amortized Cost Basis by Origination Year - Prior | 3,053,699 | 3,291,244 |
Amortized Cost Basis by Origination Year - Revolving | 1,201,758 | 438,909 |
Total loans | 17,476,982 | 18,076,076 |
Commercial loans | Pass | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 4,896,878 | 4,949,995 |
Amortized Cost Basis by Origination Year - 2020 | 2,634,131 | 3,192,348 |
Amortized Cost Basis by Origination Year - 2019 | 2,497,592 | 2,291,634 |
Amortized Cost Basis by Origination Year - 2018 | 1,610,139 | 1,762,906 |
Amortized Cost Basis by Origination Year - 2017 | 1,182,529 | 1,502,090 |
Amortized Cost Basis by Origination Year - Prior | 2,764,093 | 2,940,684 |
Amortized Cost Basis by Origination Year - Revolving | 1,182,483 | 426,549 |
Total loans | 16,767,845 | 17,066,206 |
Commercial loans | Special mention | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 33,740 | 75,624 |
Amortized Cost Basis by Origination Year - 2020 | 23,859 | 108,041 |
Amortized Cost Basis by Origination Year - 2019 | 27,582 | 130,375 |
Amortized Cost Basis by Origination Year - 2018 | 49,316 | 69,886 |
Amortized Cost Basis by Origination Year - 2017 | 54,683 | 58,629 |
Amortized Cost Basis by Origination Year - Prior | 178,307 | 230,122 |
Amortized Cost Basis by Origination Year - Revolving | 4,307 | 10,019 |
Total loans | 371,794 | 682,696 |
Commercial loans | Substandard | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 33,412 | 9,000 |
Amortized Cost Basis by Origination Year - 2020 | 9,740 | 59,385 |
Amortized Cost Basis by Origination Year - 2019 | 84,047 | 20,291 |
Amortized Cost Basis by Origination Year - 2018 | 28,544 | 57,690 |
Amortized Cost Basis by Origination Year - 2017 | 55,320 | 58,019 |
Amortized Cost Basis by Origination Year - Prior | 111,054 | 120,414 |
Amortized Cost Basis by Origination Year - Revolving | 14,966 | 2,341 |
Total loans | 337,083 | 327,140 |
Commercial loans | Doubtful | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1 | 1 |
Amortized Cost Basis by Origination Year - 2020 | 1 | 2 |
Amortized Cost Basis by Origination Year - 2019 | 5 | 1 |
Amortized Cost Basis by Origination Year - 2018 | 4 | 3 |
Amortized Cost Basis by Origination Year - 2017 | 2 | 3 |
Amortized Cost Basis by Origination Year - Prior | 245 | 24 |
Amortized Cost Basis by Origination Year - Revolving | 2 | |
Total loans | 260 | 34 |
Commercial loans | Construction and land development | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 573,474 | 478,726 |
Amortized Cost Basis by Origination Year - 2020 | 363,765 | 418,543 |
Amortized Cost Basis by Origination Year - 2019 | 209,076 | 128,657 |
Amortized Cost Basis by Origination Year - 2018 | 39,192 | 83,189 |
Amortized Cost Basis by Origination Year - 2017 | 26,828 | 43,034 |
Amortized Cost Basis by Origination Year - Prior | 53,253 | 63,859 |
Amortized Cost Basis by Origination Year - Revolving | 77,167 | 15,502 |
Total loans | 1,342,755 | 1,231,510 |
Commercial loans | Construction and land development | Pass | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 570,166 | 457,425 |
Amortized Cost Basis by Origination Year - 2020 | 360,488 | 410,075 |
Amortized Cost Basis by Origination Year - 2019 | 206,586 | 127,187 |
Amortized Cost Basis by Origination Year - 2018 | 38,866 | 79,345 |
Amortized Cost Basis by Origination Year - 2017 | 24,728 | 41,018 |
Amortized Cost Basis by Origination Year - Prior | 49,321 | 52,889 |
Amortized Cost Basis by Origination Year - Revolving | 76,680 | 15,502 |
Total loans | 1,326,835 | 1,183,441 |
Commercial loans | Construction and land development | Special mention | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 2,347 | 20,912 |
Amortized Cost Basis by Origination Year - 2020 | 3,067 | 5,668 |
Amortized Cost Basis by Origination Year - 2019 | 186 | 707 |
Amortized Cost Basis by Origination Year - 2018 | 1,757 | |
Amortized Cost Basis by Origination Year - 2017 | 1,557 | 1,815 |
Amortized Cost Basis by Origination Year - Prior | 1,715 | 7,293 |
Amortized Cost Basis by Origination Year - Revolving | 487 | |
Total loans | 9,359 | 38,152 |
Commercial loans | Construction and land development | Substandard | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 960 | 389 |
Amortized Cost Basis by Origination Year - 2020 | 210 | 2,800 |
Amortized Cost Basis by Origination Year - 2019 | 2,304 | 763 |
Amortized Cost Basis by Origination Year - 2018 | 326 | 2,087 |
Amortized Cost Basis by Origination Year - 2017 | 543 | 201 |
Amortized Cost Basis by Origination Year - Prior | 2,209 | 3,669 |
Total loans | 6,552 | 9,909 |
Commercial loans | Construction and land development | Doubtful | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1 | |
Amortized Cost Basis by Origination Year - Prior | 8 | 8 |
Total loans | 9 | 8 |
Commercial loans | Commercial non-owner occupied | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1,852,230 | 882,489 |
Amortized Cost Basis by Origination Year - 2020 | 811,316 | 1,234,716 |
Amortized Cost Basis by Origination Year - 2019 | 1,139,567 | 997,135 |
Amortized Cost Basis by Origination Year - 2018 | 737,024 | 749,817 |
Amortized Cost Basis by Origination Year - 2017 | 552,299 | 802,152 |
Amortized Cost Basis by Origination Year - Prior | 1,538,361 | 1,427,916 |
Amortized Cost Basis by Origination Year - Revolving | 104,902 | 58,021 |
Total loans | 6,735,699 | 6,152,246 |
Commercial loans | Commercial non-owner occupied | Pass | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1,812,512 | 838,646 |
Amortized Cost Basis by Origination Year - 2020 | 798,171 | 1,108,164 |
Amortized Cost Basis by Origination Year - 2019 | 1,061,021 | 878,172 |
Amortized Cost Basis by Origination Year - 2018 | 676,803 | 677,803 |
Amortized Cost Basis by Origination Year - 2017 | 494,618 | 723,745 |
Amortized Cost Basis by Origination Year - Prior | 1,371,729 | 1,253,710 |
Amortized Cost Basis by Origination Year - Revolving | 102,763 | 58,021 |
Total loans | 6,317,617 | 5,538,261 |
Commercial loans | Commercial non-owner occupied | Special mention | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 16,683 | 42,492 |
Amortized Cost Basis by Origination Year - 2020 | 12,985 | 76,890 |
Amortized Cost Basis by Origination Year - 2019 | 14,138 | 111,466 |
Amortized Cost Basis by Origination Year - 2018 | 36,875 | 44,790 |
Amortized Cost Basis by Origination Year - 2017 | 25,729 | 38,983 |
Amortized Cost Basis by Origination Year - Prior | 110,109 | 131,015 |
Total loans | 216,519 | 445,636 |
Commercial loans | Commercial non-owner occupied | Substandard | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 23,035 | 1,351 |
Amortized Cost Basis by Origination Year - 2020 | 160 | 49,662 |
Amortized Cost Basis by Origination Year - 2019 | 64,408 | 7,497 |
Amortized Cost Basis by Origination Year - 2018 | 23,346 | 27,224 |
Amortized Cost Basis by Origination Year - 2017 | 31,952 | 39,424 |
Amortized Cost Basis by Origination Year - Prior | 56,477 | 43,187 |
Amortized Cost Basis by Origination Year - Revolving | 2,139 | |
Total loans | 201,517 | 168,345 |
Commercial loans | Commercial non-owner occupied | Doubtful | ||
Loans | ||
Amortized Cost Basis by Origination Year - Prior | 46 | 4 |
Total loans | 46 | 4 |
Commercial loans | Commercial owner occupied real estate loan | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1,199,249 | 817,618 |
Amortized Cost Basis by Origination Year - 2020 | 787,504 | 977,581 |
Amortized Cost Basis by Origination Year - 2019 | 817,080 | 736,822 |
Amortized Cost Basis by Origination Year - 2018 | 562,555 | 636,050 |
Amortized Cost Basis by Origination Year - 2017 | 469,555 | 483,755 |
Amortized Cost Basis by Origination Year - Prior | 1,064,239 | 1,138,575 |
Amortized Cost Basis by Origination Year - Revolving | 69,934 | 42,296 |
Total loans | 4,970,116 | 4,832,697 |
Commercial loans | Commercial owner occupied real estate loan | Pass | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1,182,722 | 804,895 |
Amortized Cost Basis by Origination Year - 2020 | 780,339 | 957,412 |
Amortized Cost Basis by Origination Year - 2019 | 801,162 | 719,111 |
Amortized Cost Basis by Origination Year - 2018 | 549,642 | 601,471 |
Amortized Cost Basis by Origination Year - 2017 | 428,163 | 455,065 |
Amortized Cost Basis by Origination Year - Prior | 980,701 | 1,041,668 |
Amortized Cost Basis by Origination Year - Revolving | 69,739 | 42,239 |
Total loans | 4,792,468 | 4,621,861 |
Commercial loans | Commercial owner occupied real estate loan | Special mention | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 9,152 | 6,993 |
Amortized Cost Basis by Origination Year - 2020 | 4,257 | 15,984 |
Amortized Cost Basis by Origination Year - 2019 | 7,331 | 13,021 |
Amortized Cost Basis by Origination Year - 2018 | 10,860 | 14,457 |
Amortized Cost Basis by Origination Year - 2017 | 22,792 | 13,597 |
Amortized Cost Basis by Origination Year - Prior | 49,083 | 48,775 |
Amortized Cost Basis by Origination Year - Revolving | 115 | 21 |
Total loans | 103,590 | 112,848 |
Commercial loans | Commercial owner occupied real estate loan | Substandard | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 7,375 | 5,729 |
Amortized Cost Basis by Origination Year - 2020 | 2,907 | 4,185 |
Amortized Cost Basis by Origination Year - 2019 | 8,587 | 4,690 |
Amortized Cost Basis by Origination Year - 2018 | 2,053 | 20,122 |
Amortized Cost Basis by Origination Year - 2017 | 18,600 | 15,093 |
Amortized Cost Basis by Origination Year - Prior | 34,431 | 48,127 |
Amortized Cost Basis by Origination Year - Revolving | 80 | 36 |
Total loans | 74,033 | 97,982 |
Commercial loans | Commercial owner occupied real estate loan | Doubtful | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1 | |
Amortized Cost Basis by Origination Year - 2020 | 1 | |
Amortized Cost Basis by Origination Year - Prior | 24 | 5 |
Total loans | 25 | 6 |
Commercial loans | Commercial and industrial | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1,202,346 | 2,725,233 |
Amortized Cost Basis by Origination Year - 2020 | 626,160 | 599,655 |
Amortized Cost Basis by Origination Year - 2019 | 371,202 | 459,472 |
Amortized Cost Basis by Origination Year - 2018 | 271,696 | 323,328 |
Amortized Cost Basis by Origination Year - 2017 | 185,202 | 228,839 |
Amortized Cost Basis by Origination Year - Prior | 228,409 | 451,006 |
Amortized Cost Basis by Origination Year - Revolving | 876,118 | 258,777 |
Total loans | 3,761,133 | 5,046,310 |
Commercial loans | Commercial and industrial | Pass | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1,198,849 | 2,723,320 |
Amortized Cost Basis by Origination Year - 2020 | 618,676 | 595,310 |
Amortized Cost Basis by Origination Year - 2019 | 360,551 | 450,238 |
Amortized Cost Basis by Origination Year - 2018 | 267,772 | 308,442 |
Amortized Cost Basis by Origination Year - 2017 | 178,538 | 223,532 |
Amortized Cost Basis by Origination Year - Prior | 219,339 | 419,555 |
Amortized Cost Basis by Origination Year - Revolving | 860,134 | 247,169 |
Total loans | 3,703,859 | 4,967,566 |
Commercial loans | Commercial and industrial | Special mention | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 2,759 | 1,566 |
Amortized Cost Basis by Origination Year - 2020 | 1,519 | 3,273 |
Amortized Cost Basis by Origination Year - 2019 | 2,434 | 3,031 |
Amortized Cost Basis by Origination Year - 2018 | 1,268 | 7,165 |
Amortized Cost Basis by Origination Year - 2017 | 3,224 | 2,496 |
Amortized Cost Basis by Origination Year - Prior | 3,871 | 25,727 |
Amortized Cost Basis by Origination Year - Revolving | 3,281 | 9,368 |
Total loans | 18,356 | 52,626 |
Commercial loans | Commercial and industrial | Substandard | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 738 | 347 |
Amortized Cost Basis by Origination Year - 2020 | 5,965 | 1,070 |
Amortized Cost Basis by Origination Year - 2019 | 8,212 | 6,202 |
Amortized Cost Basis by Origination Year - 2018 | 2,653 | 7,718 |
Amortized Cost Basis by Origination Year - 2017 | 3,438 | 2,808 |
Amortized Cost Basis by Origination Year - Prior | 5,183 | 5,723 |
Amortized Cost Basis by Origination Year - Revolving | 12,701 | 2,240 |
Total loans | 38,890 | 26,108 |
Commercial loans | Commercial and industrial | Doubtful | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2020 | 2 | |
Amortized Cost Basis by Origination Year - 2019 | 5 | 1 |
Amortized Cost Basis by Origination Year - 2018 | 3 | 3 |
Amortized Cost Basis by Origination Year - 2017 | 2 | 3 |
Amortized Cost Basis by Origination Year - Prior | 16 | 1 |
Amortized Cost Basis by Origination Year - Revolving | 2 | |
Total loans | 28 | 10 |
Commercial loans | Other income producing property | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 108,417 | 104,728 |
Amortized Cost Basis by Origination Year - 2020 | 75,916 | 121,786 |
Amortized Cost Basis by Origination Year - 2019 | 68,534 | 119,468 |
Amortized Cost Basis by Origination Year - 2018 | 77,369 | 97,700 |
Amortized Cost Basis by Origination Year - 2017 | 58,511 | 59,880 |
Amortized Cost Basis by Origination Year - Prior | 168,246 | 208,148 |
Amortized Cost Basis by Origination Year - Revolving | 56,660 | 48,473 |
Total loans | 613,653 | 760,183 |
Commercial loans | Other income producing property | Pass | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 105,533 | 100,126 |
Amortized Cost Basis by Origination Year - 2020 | 73,583 | 117,860 |
Amortized Cost Basis by Origination Year - 2019 | 67,173 | 116,570 |
Amortized Cost Basis by Origination Year - 2018 | 76,971 | 95,506 |
Amortized Cost Basis by Origination Year - 2017 | 56,343 | 57,654 |
Amortized Cost Basis by Origination Year - Prior | 142,183 | 171,572 |
Amortized Cost Basis by Origination Year - Revolving | 56,190 | 48,116 |
Total loans | 577,976 | 707,404 |
Commercial loans | Other income producing property | Special mention | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1,580 | 3,531 |
Amortized Cost Basis by Origination Year - 2020 | 1,851 | 2,645 |
Amortized Cost Basis by Origination Year - 2019 | 1,063 | 1,901 |
Amortized Cost Basis by Origination Year - 2018 | 232 | 1,655 |
Amortized Cost Basis by Origination Year - 2017 | 1,381 | 1,738 |
Amortized Cost Basis by Origination Year - Prior | 13,526 | 17,188 |
Amortized Cost Basis by Origination Year - Revolving | 424 | 292 |
Total loans | 20,057 | 28,950 |
Commercial loans | Other income producing property | Substandard | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1,304 | 1,071 |
Amortized Cost Basis by Origination Year - 2020 | 482 | 1,281 |
Amortized Cost Basis by Origination Year - 2019 | 298 | 997 |
Amortized Cost Basis by Origination Year - 2018 | 166 | 539 |
Amortized Cost Basis by Origination Year - 2017 | 787 | 488 |
Amortized Cost Basis by Origination Year - Prior | 12,531 | 19,382 |
Amortized Cost Basis by Origination Year - Revolving | 46 | 65 |
Total loans | 15,614 | 23,823 |
Commercial loans | Other income producing property | Doubtful | ||
Loans | ||
Amortized Cost Basis by Origination Year - Prior | 6 | 6 |
Total loans | 6 | 6 |
Commercial loans | Consumer Owner Occupied Loans | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 4,732 | 7,833 |
Amortized Cost Basis by Origination Year - 2020 | 3,070 | 7,495 |
Amortized Cost Basis by Origination Year - 2019 | 3,767 | 747 |
Amortized Cost Basis by Origination Year - 2018 | 167 | 401 |
Amortized Cost Basis by Origination Year - 2017 | 139 | 1,081 |
Amortized Cost Basis by Origination Year - Prior | 1,191 | 1,740 |
Amortized Cost Basis by Origination Year - Revolving | 16,977 | 15,840 |
Total loans | 30,043 | 35,137 |
Commercial loans | Consumer Owner Occupied Loans | Pass | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 3,513 | 7,590 |
Amortized Cost Basis by Origination Year - 2020 | 2,874 | 3,527 |
Amortized Cost Basis by Origination Year - 2019 | 1,099 | 356 |
Amortized Cost Basis by Origination Year - 2018 | 85 | 339 |
Amortized Cost Basis by Origination Year - 2017 | 139 | 1,076 |
Amortized Cost Basis by Origination Year - Prior | 820 | 1,290 |
Amortized Cost Basis by Origination Year - Revolving | 16,977 | 15,502 |
Total loans | 25,507 | 29,680 |
Commercial loans | Consumer Owner Occupied Loans | Special mention | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1,219 | 130 |
Amortized Cost Basis by Origination Year - 2020 | 180 | 3,581 |
Amortized Cost Basis by Origination Year - 2019 | 2,430 | 249 |
Amortized Cost Basis by Origination Year - 2018 | 81 | 62 |
Amortized Cost Basis by Origination Year - Prior | 3 | 124 |
Amortized Cost Basis by Origination Year - Revolving | 338 | |
Total loans | 3,913 | 4,484 |
Commercial loans | Consumer Owner Occupied Loans | Substandard | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 113 | |
Amortized Cost Basis by Origination Year - 2020 | 16 | 387 |
Amortized Cost Basis by Origination Year - 2019 | 238 | 142 |
Amortized Cost Basis by Origination Year - 2017 | 5 | |
Amortized Cost Basis by Origination Year - Prior | 223 | 326 |
Total loans | 477 | 973 |
Commercial loans | Consumer Owner Occupied Loans | Doubtful | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2018 | 1 | |
Amortized Cost Basis by Origination Year - Prior | 145 | |
Total loans | 146 | |
Commercial loans | Other loans | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 23,583 | 17,993 |
Total loans | 23,583 | 17,993 |
Commercial loans | Other loans | Pass | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 23,583 | 17,993 |
Total loans | 23,583 | 17,993 |
Consumer portfolio loans | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1,949,029 | 1,448,804 |
Amortized Cost Basis by Origination Year - 2020 | 1,098,182 | 1,006,853 |
Amortized Cost Basis by Origination Year - 2019 | 578,373 | 672,126 |
Amortized Cost Basis by Origination Year - 2018 | 338,915 | 542,006 |
Amortized Cost Basis by Origination Year - 2017 | 282,710 | 408,830 |
Amortized Cost Basis by Origination Year - Prior | 1,053,298 | 1,237,932 |
Amortized Cost Basis by Origination Year - Revolving | 1,150,677 | 1,271,507 |
Total loans | 6,451,184 | 6,588,058 |
Consumer portfolio loans | Current due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1,947,911 | 1,436,882 |
Amortized Cost Basis by Origination Year - 2020 | 1,095,907 | 993,967 |
Amortized Cost Basis by Origination Year - 2019 | 576,511 | 666,446 |
Amortized Cost Basis by Origination Year - 2018 | 336,965 | 537,615 |
Amortized Cost Basis by Origination Year - 2017 | 280,960 | 401,898 |
Amortized Cost Basis by Origination Year - Prior | 1,039,029 | 1,214,423 |
Amortized Cost Basis by Origination Year - Revolving | 1,147,334 | 1,267,093 |
Total loans | 6,424,617 | 6,518,324 |
Consumer portfolio loans | 30 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 589 | 11,344 |
Amortized Cost Basis by Origination Year - 2020 | 1,103 | 11,929 |
Amortized Cost Basis by Origination Year - 2019 | 510 | 3,391 |
Amortized Cost Basis by Origination Year - 2018 | 734 | 2,373 |
Amortized Cost Basis by Origination Year - 2017 | 1,224 | 5,487 |
Amortized Cost Basis by Origination Year - Prior | 4,381 | 11,033 |
Amortized Cost Basis by Origination Year - Revolving | 2,337 | 2,347 |
Total loans | 10,878 | 47,904 |
Consumer portfolio loans | 60 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 145 | 350 |
Amortized Cost Basis by Origination Year - 2020 | 412 | 493 |
Amortized Cost Basis by Origination Year - 2019 | 308 | 1,753 |
Amortized Cost Basis by Origination Year - 2018 | 378 | 682 |
Amortized Cost Basis by Origination Year - 2017 | 201 | 140 |
Amortized Cost Basis by Origination Year - Prior | 2,357 | 3,398 |
Amortized Cost Basis by Origination Year - Revolving | 356 | 465 |
Total loans | 4,157 | 7,281 |
Consumer portfolio loans | 90 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 384 | 228 |
Amortized Cost Basis by Origination Year - 2020 | 760 | 464 |
Amortized Cost Basis by Origination Year - 2019 | 1,044 | 536 |
Amortized Cost Basis by Origination Year - 2018 | 838 | 1,336 |
Amortized Cost Basis by Origination Year - 2017 | 325 | 1,305 |
Amortized Cost Basis by Origination Year - Prior | 7,531 | 9,078 |
Amortized Cost Basis by Origination Year - Revolving | 650 | 1,602 |
Total loans | 11,532 | 14,549 |
Consumer portfolio loans | Construction and land development | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 411,728 | 376,911 |
Amortized Cost Basis by Origination Year - 2020 | 204,392 | 167,388 |
Amortized Cost Basis by Origination Year - 2019 | 33,965 | 64,120 |
Amortized Cost Basis by Origination Year - 2018 | 13,429 | 18,530 |
Amortized Cost Basis by Origination Year - 2017 | 8,484 | 6,752 |
Amortized Cost Basis by Origination Year - Prior | 14,301 | 25,635 |
Amortized Cost Basis by Origination Year - Revolving | 162 | |
Total loans | 686,461 | 659,336 |
Consumer portfolio loans | Construction and land development | Current due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 411,728 | 370,457 |
Amortized Cost Basis by Origination Year - 2020 | 204,368 | 163,728 |
Amortized Cost Basis by Origination Year - 2019 | 33,965 | 63,521 |
Amortized Cost Basis by Origination Year - 2018 | 13,429 | 18,530 |
Amortized Cost Basis by Origination Year - 2017 | 8,484 | 4,497 |
Amortized Cost Basis by Origination Year - Prior | 14,185 | 25,399 |
Amortized Cost Basis by Origination Year - Revolving | 162 | |
Total loans | 686,321 | 646,132 |
Consumer portfolio loans | Construction and land development | 30 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 6,172 | |
Amortized Cost Basis by Origination Year - 2020 | 24 | 3,660 |
Amortized Cost Basis by Origination Year - 2019 | 161 | |
Amortized Cost Basis by Origination Year - 2017 | 2,255 | |
Amortized Cost Basis by Origination Year - Prior | 184 | |
Total loans | 24 | 12,432 |
Consumer portfolio loans | Construction and land development | 60 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 282 | |
Amortized Cost Basis by Origination Year - 2019 | 438 | |
Amortized Cost Basis by Origination Year - Prior | 12 | |
Total loans | 12 | 720 |
Consumer portfolio loans | Construction and land development | 90 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - Prior | 104 | 52 |
Total loans | 104 | 52 |
Consumer portfolio loans | Other income producing property | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 22,131 | 7,941 |
Amortized Cost Basis by Origination Year - 2020 | 5,620 | 7,073 |
Amortized Cost Basis by Origination Year - 2019 | 4,906 | 8,828 |
Amortized Cost Basis by Origination Year - 2018 | 4,977 | 9,081 |
Amortized Cost Basis by Origination Year - 2017 | 6,303 | 6,872 |
Amortized Cost Basis by Origination Year - Prior | 37,835 | 52,213 |
Amortized Cost Basis by Origination Year - Revolving | 1,379 | 2,709 |
Total loans | 83,151 | 94,717 |
Consumer portfolio loans | Other income producing property | Current due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 22,131 | 7,941 |
Amortized Cost Basis by Origination Year - 2020 | 5,620 | 7,073 |
Amortized Cost Basis by Origination Year - 2019 | 4,906 | 8,828 |
Amortized Cost Basis by Origination Year - 2018 | 4,977 | 8,946 |
Amortized Cost Basis by Origination Year - 2017 | 6,303 | 6,872 |
Amortized Cost Basis by Origination Year - Prior | 37,575 | 51,554 |
Amortized Cost Basis by Origination Year - Revolving | 1,379 | 2,709 |
Total loans | 82,891 | 93,923 |
Consumer portfolio loans | Other income producing property | 30 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - Prior | 90 | 240 |
Total loans | 90 | 240 |
Consumer portfolio loans | Other income producing property | 60 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2018 | 135 | |
Amortized Cost Basis by Origination Year - Prior | 156 | 196 |
Total loans | 156 | 331 |
Consumer portfolio loans | Other income producing property | 90 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - Prior | 14 | 223 |
Total loans | 14 | 223 |
Consumer portfolio loans | Consumer Owner Occupied Loans | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1,193,038 | 764,458 |
Amortized Cost Basis by Origination Year - 2020 | 712,398 | 623,412 |
Amortized Cost Basis by Origination Year - 2019 | 406,281 | 475,486 |
Amortized Cost Basis by Origination Year - 2018 | 247,762 | 450,546 |
Amortized Cost Basis by Origination Year - 2017 | 230,329 | 356,040 |
Amortized Cost Basis by Origination Year - Prior | 818,509 | 977,588 |
Amortized Cost Basis by Origination Year - Revolving | 4 | |
Total loans | 3,608,321 | 3,647,530 |
Consumer portfolio loans | Consumer Owner Occupied Loans | Current due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 1,192,449 | 759,525 |
Amortized Cost Basis by Origination Year - 2020 | 710,828 | 615,142 |
Amortized Cost Basis by Origination Year - 2019 | 405,138 | 471,224 |
Amortized Cost Basis by Origination Year - 2018 | 246,487 | 446,996 |
Amortized Cost Basis by Origination Year - 2017 | 228,876 | 351,859 |
Amortized Cost Basis by Origination Year - Prior | 810,605 | 960,330 |
Amortized Cost Basis by Origination Year - Revolving | 4 | |
Total loans | 3,594,387 | 3,605,076 |
Consumer portfolio loans | Consumer Owner Occupied Loans | 30 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 354 | 4,933 |
Amortized Cost Basis by Origination Year - 2020 | 666 | 7,744 |
Amortized Cost Basis by Origination Year - 2019 | 234 | 2,776 |
Amortized Cost Basis by Origination Year - 2018 | 472 | 2,070 |
Amortized Cost Basis by Origination Year - 2017 | 1,068 | 3,203 |
Amortized Cost Basis by Origination Year - Prior | 2,230 | 9,294 |
Total loans | 5,024 | 30,020 |
Consumer portfolio loans | Consumer Owner Occupied Loans | 60 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2020 | 330 | 350 |
Amortized Cost Basis by Origination Year - 2019 | 218 | 1,222 |
Amortized Cost Basis by Origination Year - 2018 | 254 | 486 |
Amortized Cost Basis by Origination Year - 2017 | 111 | 103 |
Amortized Cost Basis by Origination Year - Prior | 928 | 2,710 |
Total loans | 1,841 | 4,871 |
Consumer portfolio loans | Consumer Owner Occupied Loans | 90 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 235 | |
Amortized Cost Basis by Origination Year - 2020 | 574 | 176 |
Amortized Cost Basis by Origination Year - 2019 | 691 | 264 |
Amortized Cost Basis by Origination Year - 2018 | 549 | 994 |
Amortized Cost Basis by Origination Year - 2017 | 274 | 875 |
Amortized Cost Basis by Origination Year - Prior | 4,746 | 5,254 |
Total loans | 7,069 | 7,563 |
Consumer portfolio loans | Home equity loans | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 7,209 | 7,943 |
Amortized Cost Basis by Origination Year - 2020 | 5,762 | 6,839 |
Amortized Cost Basis by Origination Year - 2019 | 4,985 | 7,670 |
Amortized Cost Basis by Origination Year - 2018 | 2,431 | 894 |
Amortized Cost Basis by Origination Year - 2017 | 1,039 | 728 |
Amortized Cost Basis by Origination Year - Prior | 27,358 | 32,313 |
Amortized Cost Basis by Origination Year - Revolving | 1,119,810 | 1,235,754 |
Total loans | 1,168,594 | 1,292,141 |
Consumer portfolio loans | Home equity loans | Current due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 7,128 | 7,654 |
Amortized Cost Basis by Origination Year - 2020 | 5,648 | 6,694 |
Amortized Cost Basis by Origination Year - 2019 | 4,745 | 7,670 |
Amortized Cost Basis by Origination Year - 2018 | 2,180 | 658 |
Amortized Cost Basis by Origination Year - 2017 | 993 | 398 |
Amortized Cost Basis by Origination Year - Prior | 24,716 | 30,039 |
Amortized Cost Basis by Origination Year - Revolving | 1,116,621 | 1,231,510 |
Total loans | 1,162,031 | 1,284,623 |
Consumer portfolio loans | Home equity loans | 30 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 6 | 134 |
Amortized Cost Basis by Origination Year - 2020 | 49 | 52 |
Amortized Cost Basis by Origination Year - 2019 | 68 | |
Amortized Cost Basis by Origination Year - 2018 | 71 | 79 |
Amortized Cost Basis by Origination Year - 2017 | 24 | |
Amortized Cost Basis by Origination Year - Prior | 491 | 272 |
Amortized Cost Basis by Origination Year - Revolving | 2,200 | 2,324 |
Total loans | 2,909 | 2,861 |
Consumer portfolio loans | Home equity loans | 60 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - Prior | 603 | 116 |
Amortized Cost Basis by Origination Year - Revolving | 339 | 418 |
Total loans | 942 | 534 |
Consumer portfolio loans | Home equity loans | 90 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 75 | 155 |
Amortized Cost Basis by Origination Year - 2020 | 65 | 93 |
Amortized Cost Basis by Origination Year - 2019 | 172 | |
Amortized Cost Basis by Origination Year - 2018 | 180 | 157 |
Amortized Cost Basis by Origination Year - 2017 | 22 | 330 |
Amortized Cost Basis by Origination Year - Prior | 1,548 | 1,886 |
Amortized Cost Basis by Origination Year - Revolving | 650 | 1,502 |
Total loans | 2,712 | 4,123 |
Consumer portfolio loans | Consumer loans | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 314,923 | 291,551 |
Amortized Cost Basis by Origination Year - 2020 | 170,010 | 202,141 |
Amortized Cost Basis by Origination Year - 2019 | 128,236 | 116,022 |
Amortized Cost Basis by Origination Year - 2018 | 70,316 | 62,955 |
Amortized Cost Basis by Origination Year - 2017 | 36,555 | 38,438 |
Amortized Cost Basis by Origination Year - Prior | 155,295 | 150,183 |
Amortized Cost Basis by Origination Year - Revolving | 29,322 | 33,044 |
Total loans | 904,657 | 894,334 |
Consumer portfolio loans | Consumer loans | Current due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 314,475 | 291,305 |
Amortized Cost Basis by Origination Year - 2020 | 169,443 | 201,330 |
Amortized Cost Basis by Origination Year - 2019 | 127,757 | 115,203 |
Amortized Cost Basis by Origination Year - 2018 | 69,892 | 62,485 |
Amortized Cost Basis by Origination Year - 2017 | 36,304 | 38,272 |
Amortized Cost Basis by Origination Year - Prior | 151,948 | 147,101 |
Amortized Cost Basis by Origination Year - Revolving | 29,168 | 32,874 |
Total loans | 898,987 | 888,570 |
Consumer portfolio loans | Consumer loans | 30 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 229 | 105 |
Amortized Cost Basis by Origination Year - 2020 | 364 | 473 |
Amortized Cost Basis by Origination Year - 2019 | 208 | 454 |
Amortized Cost Basis by Origination Year - 2018 | 191 | 224 |
Amortized Cost Basis by Origination Year - 2017 | 132 | 29 |
Amortized Cost Basis by Origination Year - Prior | 1,570 | 1,043 |
Amortized Cost Basis by Origination Year - Revolving | 137 | 23 |
Total loans | 2,831 | 2,351 |
Consumer portfolio loans | Consumer loans | 60 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 145 | 68 |
Amortized Cost Basis by Origination Year - 2020 | 82 | 143 |
Amortized Cost Basis by Origination Year - 2019 | 90 | 93 |
Amortized Cost Basis by Origination Year - 2018 | 124 | 61 |
Amortized Cost Basis by Origination Year - 2017 | 90 | 37 |
Amortized Cost Basis by Origination Year - Prior | 658 | 376 |
Amortized Cost Basis by Origination Year - Revolving | 17 | 47 |
Total loans | 1,206 | 825 |
Consumer portfolio loans | Consumer loans | 90 days past due | ||
Loans | ||
Amortized Cost Basis by Origination Year - 2021 | 74 | 73 |
Amortized Cost Basis by Origination Year - 2020 | 121 | 195 |
Amortized Cost Basis by Origination Year - 2019 | 181 | 272 |
Amortized Cost Basis by Origination Year - 2018 | 109 | 185 |
Amortized Cost Basis by Origination Year - 2017 | 29 | 100 |
Amortized Cost Basis by Origination Year - Prior | 1,119 | 1,663 |
Amortized Cost Basis by Origination Year - Revolving | 100 | |
Total loans | $ 1,633 | $ 2,588 |
Loans - Aging analysis of past
Loans - Aging analysis of past due loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loans and Allowance for Loan Losses | ||
Non-Accruing | $ 75,418 | $ 95,188 |
Total loans | 23,928,166 | 24,664,134 |
30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 68,136 | 20,185 |
60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 33,250 | 29,380 |
90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 4,863 | 11,651 |
Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 106,249 | 61,216 |
Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 23,746,499 | 24,507,730 |
Non-acquired loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 16,050,775 | 12,289,456 |
Construction and land development | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 1,567 | 2,421 |
Total loans | 2,029,216 | 1,890,846 |
Construction and land development | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,176 | 520 |
Construction and land development | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 59 | 1,142 |
Construction and land development | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 43 | |
Construction and land development | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,278 | 1,662 |
Construction and land development | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 2,026,371 | 1,886,763 |
Commercial non-owner occupied | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 19,909 | 5,470 |
Total loans | 6,735,699 | 6,152,246 |
Commercial non-owner occupied | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 3,591 | 188 |
Commercial non-owner occupied | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 2,110 | 372 |
Commercial non-owner occupied | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 96 | 471 |
Commercial non-owner occupied | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 5,797 | 1,031 |
Commercial non-owner occupied | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 6,709,993 | 6,145,745 |
Commercial owner occupied real estate loan | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 14,532 | 26,059 |
Total loans | 4,970,116 | 4,832,697 |
Commercial owner occupied real estate loan | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 2,756 | 2,900 |
Commercial owner occupied real estate loan | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,732 | 840 |
Commercial owner occupied real estate loan | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 626 | |
Commercial owner occupied real estate loan | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 5,114 | 3,740 |
Commercial owner occupied real estate loan | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 4,950,470 | 4,802,898 |
Consumer Owner Occupied Loans | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 18,183 | 28,477 |
Total loans | 3,638,364 | 3,682,667 |
Consumer Owner Occupied Loans | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 4,046 | 1,165 |
Consumer Owner Occupied Loans | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 533 | 3,294 |
Consumer Owner Occupied Loans | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 34 | |
Consumer Owner Occupied Loans | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 4,579 | 4,493 |
Consumer Owner Occupied Loans | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 3,615,602 | 3,649,697 |
Home equity loans | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 6,255 | 9,926 |
Total loans | 1,168,594 | 1,292,141 |
Home equity loans | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 2,565 | 1,805 |
Home equity loans | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 913 | 481 |
Home equity loans | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 3,478 | 2,286 |
Home equity loans | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,158,861 | 1,279,929 |
Commercial and industrial | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 7,441 | 9,218 |
Total loans | 3,761,133 | 5,046,310 |
Commercial and industrial | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 50,451 | 10,979 |
Commercial and industrial | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 26,639 | 22,089 |
Commercial and industrial | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 3,991 | 10,864 |
Commercial and industrial | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 81,081 | 43,932 |
Commercial and industrial | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 3,672,611 | 4,993,160 |
Other income producing property | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 4,075 | 7,543 |
Total loans | 696,804 | 854,900 |
Other income producing property | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 879 | 897 |
Other income producing property | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 424 | 338 |
Other income producing property | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 106 | 278 |
Other income producing property | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,409 | 1,513 |
Other income producing property | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 691,320 | 845,844 |
Consumer loans | ||
Loans and Allowance for Loan Losses | ||
Non-Accruing | 3,456 | 6,074 |
Total loans | 904,657 | 894,334 |
Consumer loans | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 2,672 | 1,718 |
Consumer loans | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 840 | 818 |
Consumer loans | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1 | 4 |
Consumer loans | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 3,513 | 2,540 |
Consumer loans | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 897,688 | 885,720 |
Other loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 23,583 | 17,993 |
Other loans | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 13 | |
Other loans | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 6 | |
Other loans | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 19 | |
Other loans | Current | ||
Loans and Allowance for Loan Losses | ||
Total loans | 23,583 | 17,974 |
Commercial loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 17,476,982 | 18,076,076 |
Commercial loans | Construction and land development | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,342,755 | 1,231,510 |
Commercial loans | Commercial non-owner occupied | ||
Loans and Allowance for Loan Losses | ||
Total loans | 6,735,699 | 6,152,246 |
Commercial loans | Commercial owner occupied real estate loan | ||
Loans and Allowance for Loan Losses | ||
Total loans | 4,970,116 | 4,832,697 |
Commercial loans | Consumer Owner Occupied Loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 30,043 | 35,137 |
Commercial loans | Commercial and industrial | ||
Loans and Allowance for Loan Losses | ||
Total loans | 3,761,133 | 5,046,310 |
Commercial loans | Other income producing property | ||
Loans and Allowance for Loan Losses | ||
Total loans | 613,653 | 760,183 |
Commercial loans | Other loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 23,583 | 17,993 |
Consumer portfolio loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 6,451,184 | 6,588,058 |
Consumer portfolio loans | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 10,878 | 47,904 |
Consumer portfolio loans | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 4,157 | 7,281 |
Consumer portfolio loans | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 11,532 | 14,549 |
Consumer portfolio loans | Construction and land development | ||
Loans and Allowance for Loan Losses | ||
Total loans | 686,461 | 659,336 |
Consumer portfolio loans | Construction and land development | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 24 | 12,432 |
Consumer portfolio loans | Construction and land development | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 12 | 720 |
Consumer portfolio loans | Construction and land development | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 104 | 52 |
Consumer portfolio loans | Consumer Owner Occupied Loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 3,608,321 | 3,647,530 |
Consumer portfolio loans | Consumer Owner Occupied Loans | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 5,024 | 30,020 |
Consumer portfolio loans | Consumer Owner Occupied Loans | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,841 | 4,871 |
Consumer portfolio loans | Consumer Owner Occupied Loans | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 7,069 | 7,563 |
Consumer portfolio loans | Home equity loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,168,594 | 1,292,141 |
Consumer portfolio loans | Home equity loans | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 2,909 | 2,861 |
Consumer portfolio loans | Home equity loans | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 942 | 534 |
Consumer portfolio loans | Home equity loans | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 2,712 | 4,123 |
Consumer portfolio loans | Other income producing property | ||
Loans and Allowance for Loan Losses | ||
Total loans | 83,151 | 94,717 |
Consumer portfolio loans | Other income producing property | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 90 | 240 |
Consumer portfolio loans | Other income producing property | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 156 | 331 |
Consumer portfolio loans | Other income producing property | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 14 | 223 |
Consumer portfolio loans | Consumer loans | ||
Loans and Allowance for Loan Losses | ||
Total loans | 904,657 | 894,334 |
Consumer portfolio loans | Consumer loans | 30 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 2,831 | 2,351 |
Consumer portfolio loans | Consumer loans | 60 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,206 | 825 |
Consumer portfolio loans | Consumer loans | 90 days past due | ||
Loans and Allowance for Loan Losses | ||
Total loans | $ 1,633 | $ 2,588 |
Loans - Nonaccrual loans (Detai
Loans - Nonaccrual loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loans | ||
Total loans on nonaccrual status | $ 75,418 | $ 95,188 |
Greater than 90 Days Accruing | 4,863 | |
Non-accrual with no allowance | 15,907 | |
Commercial loans | Construction and land development | ||
Loans | ||
Total loans on nonaccrual status | 1,567 | 2,421 |
Greater than 90 Days Accruing | 43 | |
Non-accrual with no allowance | 81 | |
Commercial loans | Commercial non-owner occupied | ||
Loans | ||
Total loans on nonaccrual status | 19,909 | 5,470 |
Greater than 90 Days Accruing | 96 | |
Non-accrual with no allowance | 8,771 | |
Commercial loans | Commercial non-owner occupied real estate | ||
Loans | ||
Total loans on nonaccrual status | 14,532 | 26,059 |
Greater than 90 Days Accruing | 626 | |
Non-accrual with no allowance | 6,609 | |
Commercial loans | Commercial and industrial | ||
Loans | ||
Total loans on nonaccrual status | 7,441 | 9,218 |
Greater than 90 Days Accruing | 3,991 | |
Non-accrual with no allowance | 177 | |
Commercial loans | Other income producing property | ||
Loans | ||
Total loans on nonaccrual status | 4,075 | 7,543 |
Greater than 90 Days Accruing | 106 | |
Non-accrual with no allowance | 220 | |
Consumer portfolio loans | Consumer Owner Occupied Loans | ||
Loans | ||
Total loans on nonaccrual status | 18,183 | 28,477 |
Consumer portfolio loans | Home equity loans | ||
Loans | ||
Total loans on nonaccrual status | 6,255 | 9,926 |
Non-accrual with no allowance | 49 | |
Consumer portfolio loans | Consumer loans | ||
Loans | ||
Total loans on nonaccrual status | 3,456 | $ 6,074 |
Greater than 90 Days Accruing | $ 1 |
Loans - Collateral Dependent Lo
Loans - Collateral Dependent Loans (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Loans | ||||
Collateral dependent loans | $ 15,380,000 | $ 6,935,000 | ||
Collateral Coverage | $ 28,238,000 | 8,050,000 | ||
Loans individually evaluated for impairment | $ 1,000,000 | $ 500,000 | ||
Increase in overall collateral dependent loans | 8,400,000 | |||
Number of months generally required to return to accruing status | 6 months | |||
Commercial non-owner occupied | Hotel | ||||
Loans | ||||
Collateral dependent loans | $ 1,822,000 | |||
Collateral Coverage | $ 4,100,000 | |||
Collateral Coverage (as a percent) | 225.00% | |||
Commercial non-owner occupied | Other | ||||
Loans | ||||
Collateral dependent loans | $ 6,949,000 | |||
Collateral Coverage | $ 9,630,000 | |||
Collateral Coverage (as a percent) | 139.00% | |||
Commercial owner occupied real estate loan | Church | ||||
Loans | ||||
Collateral dependent loans | $ 1,953,000 | |||
Collateral Coverage | $ 2,308,000 | |||
Collateral Coverage (as a percent) | 118.00% | |||
Commercial owner occupied real estate loan | Office | ||||
Loans | ||||
Collateral dependent loans | 1,076,000 | |||
Collateral Coverage | $ 1,485,000 | |||
Collateral Coverage (as a percent) | 138.00% | |||
Commercial owner occupied real estate loan | Other | ||||
Loans | ||||
Collateral dependent loans | $ 4,656,000 | $ 1,010,000 | ||
Collateral Coverage | $ 12,200,000 | $ 1,075,000 | ||
Collateral Coverage (as a percent) | 262.00% | 106.00% | ||
Commercial owner occupied real estate loan | Retail | ||||
Loans | ||||
Collateral dependent loans | $ 4,849,000 | |||
Collateral Coverage | $ 5,490,000 | |||
Collateral Coverage (as a percent) | 113.00% |
Loans - Loans Designated as TDR
Loans - Loans Designated as TDRs (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Loans Designated as TDRs | ||
Number of loans | loan | 5 | 26 |
Pre-Modification Amortized Cost | $ 869,000 | $ 9,075,000 |
Post-Modification Amortized Cost | 869,000 | 9,075,000 |
Balance of accruing TDRs | 11,200,000 | 14,600,000 |
Remaining availability under commitments to lend additional funds on restructured loans | 537,000 | 576,000 |
Specific reserve associated with restructured loans that subsequently defaulted | $ 2,500,000 | $ 1,200,000 |
Interest rate modification | ||
Loans Designated as TDRs | ||
Number of loans | loan | 3 | 13 |
Pre-Modification Amortized Cost | $ 515,000 | $ 7,524,000 |
Post-Modification Amortized Cost | $ 515,000 | $ 7,524,000 |
Term modification | ||
Loans Designated as TDRs | ||
Number of loans | loan | 2 | 13 |
Pre-Modification Amortized Cost | $ 354,000 | $ 1,551,000 |
Post-Modification Amortized Cost | $ 354,000 | $ 1,551,000 |
Construction and land development | Interest rate modification | ||
Loans Designated as TDRs | ||
Number of loans | loan | 2 | |
Pre-Modification Amortized Cost | $ 96,000 | |
Post-Modification Amortized Cost | $ 96,000 | |
Commercial non-owner occupied | Term modification | ||
Loans Designated as TDRs | ||
Number of loans | loan | 1 | |
Pre-Modification Amortized Cost | $ 316,000 | |
Post-Modification Amortized Cost | $ 316,000 | |
Commercial owner occupied real estate loan | Interest rate modification | ||
Loans Designated as TDRs | ||
Number of loans | loan | 1 | 4 |
Pre-Modification Amortized Cost | $ 276,000 | $ 6,905,000 |
Post-Modification Amortized Cost | $ 276,000 | $ 6,905,000 |
Commercial owner occupied real estate loan | Term modification | ||
Loans Designated as TDRs | ||
Number of loans | loan | 1 | |
Pre-Modification Amortized Cost | $ 180,000 | |
Post-Modification Amortized Cost | $ 180,000 | |
Consumer Owner Occupied Loans | Interest rate modification | ||
Loans Designated as TDRs | ||
Number of loans | loan | 1 | |
Pre-Modification Amortized Cost | $ 28,000 | |
Post-Modification Amortized Cost | $ 28,000 | |
Consumer Owner Occupied Loans | Term modification | ||
Loans Designated as TDRs | ||
Number of loans | loan | 5 | |
Pre-Modification Amortized Cost | $ 579,000 | |
Post-Modification Amortized Cost | $ 579,000 | |
Home equity loans | Interest rate modification | ||
Loans Designated as TDRs | ||
Number of loans | loan | 1 | |
Pre-Modification Amortized Cost | $ 52,000 | |
Post-Modification Amortized Cost | $ 52,000 | |
Home equity loans | Term modification | ||
Loans Designated as TDRs | ||
Number of loans | loan | 1 | |
Pre-Modification Amortized Cost | $ 50,000 | |
Post-Modification Amortized Cost | $ 50,000 | |
Commercial and industrial | Interest rate modification | ||
Loans Designated as TDRs | ||
Number of loans | loan | 1 | 3 |
Pre-Modification Amortized Cost | $ 33,000 | $ 372,000 |
Post-Modification Amortized Cost | $ 33,000 | $ 372,000 |
Commercial and industrial | Term modification | ||
Loans Designated as TDRs | ||
Number of loans | loan | 1 | 2 |
Pre-Modification Amortized Cost | $ 38,000 | $ 284,000 |
Post-Modification Amortized Cost | $ 38,000 | $ 284,000 |
Other income producing property | Interest rate modification | ||
Loans Designated as TDRs | ||
Number of loans | loan | 1 | 2 |
Pre-Modification Amortized Cost | $ 206,000 | $ 71,000 |
Post-Modification Amortized Cost | $ 206,000 | $ 71,000 |
Other income producing property | Term modification | ||
Loans Designated as TDRs | ||
Number of loans | loan | 1 | |
Pre-Modification Amortized Cost | $ 338,000 | |
Post-Modification Amortized Cost | $ 338,000 | |
Consumer loans | Term modification | ||
Loans Designated as TDRs | ||
Number of loans | loan | 3 | |
Pre-Modification Amortized Cost | $ 120,000 | |
Post-Modification Amortized Cost | $ 120,000 |
Loans - Changes in Status of Lo
Loans - Changes in Status of Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)loan | |
Loans Designated as TDRs | |
Paying under restructured terms - Number of Loans | loan | 4 |
Paying under restructured terms - Amortized Cost | $ | $ 831 |
Converted to Nonaccrual - Number of Loans | loan | 1 |
Converted to Nonaccrual - Amortized Cost | $ | $ 38 |
Interest rate modification | |
Loans Designated as TDRs | |
Paying under restructured terms - Number of Loans | loan | 3 |
Paying under restructured terms - Amortized Cost | $ | $ 515 |
Term modification | |
Loans Designated as TDRs | |
Paying under restructured terms - Number of Loans | loan | 1 |
Paying under restructured terms - Amortized Cost | $ | $ 316 |
Converted to Nonaccrual - Number of Loans | loan | 1 |
Converted to Nonaccrual - Amortized Cost | $ | $ 38 |
Allowance for Credit Losses (_3
Allowance for Credit Losses (ACL) - Disaggregated analysis of the changes in allowance for credit losses (Details) - USD ($) $ in Thousands | Jun. 07, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Allowance for credit losses | |||
Balance at beginning of period | $ 457,309 | $ 56,927 | |
Charge-offs | (16,899) | (14,602) | |
Recoveries | 13,800 | 11,777 | |
Net (charge-offs) recoveries | (3,099) | (2,825) | |
(Recovery) provision | (152,403) | 89,923 | |
Balance at end of period | 301,807 | 457,309 | |
Quantitative allowance | |||
Collectively evaluated | 292,210 | 415,929 | |
Individually evaluated | 2,464 | 1,249 | |
Total quantitative allowance | 294,674 | 417,178 | |
Qualitative allowance | 7,133 | 40,131 | |
Provision for credit losses | (152,403) | 89,923 | |
Unfunded Commitment | |||
Allowance for credit losses | |||
(Recovery) provision | 12,900 | 43,400 | |
Quantitative allowance | |||
Provision for credit losses | 12,900 | 43,400 | |
Initial PCD Allowance | |||
Allowance for credit losses | |||
Balance at beginning of period | 149,404 | 3,408 | |
Balance at end of period | 149,404 | ||
Adjustments | |||
Allowance for credit losses | |||
Balance at beginning of period | 457,309 | 111,365 | |
Balance at end of period | 457,309 | ||
Adjustments | ASU 2016-13 | |||
Allowance for credit losses | |||
Balance at beginning of period | 109,442 | 51,030 | |
Balance at end of period | 109,442 | ||
Residential Mortgage Sr. | |||
Allowance for credit losses | |||
Balance at beginning of period | 63,561 | 6,128 | |
Charge-offs | (204) | (528) | |
Recoveries | 1,547 | 1,143 | |
Net (charge-offs) recoveries | 1,343 | 615 | |
(Recovery) provision | (17,868) | 4,310 | |
Balance at end of period | 47,036 | 63,561 | |
Quantitative allowance | |||
Collectively evaluated | 45,575 | 54,656 | |
Individually evaluated | 150 | 82 | |
Total quantitative allowance | 45,725 | 54,738 | |
Qualitative allowance | 1,311 | 8,823 | |
Provision for credit losses | (17,868) | 4,310 | |
Residential Mortgage Sr. | Initial PCD Allowance | |||
Allowance for credit losses | |||
Balance at beginning of period | 29,935 | 406 | |
Balance at end of period | 29,935 | ||
Residential Mortgage Sr. | Adjustments | |||
Allowance for credit losses | |||
Balance at beginning of period | 63,561 | 11,989 | |
Balance at end of period | 63,561 | ||
Residential Mortgage Sr. | Adjustments | ASU 2016-13 | |||
Allowance for credit losses | |||
Balance at beginning of period | 16,712 | 5,455 | |
Balance at end of period | 16,712 | ||
Residential Mortgage Jr. | |||
Allowance for credit losses | |||
Balance at beginning of period | 1,238 | 15 | |
Charge-offs | (24) | ||
Recoveries | 146 | 455 | |
Net (charge-offs) recoveries | 146 | 431 | |
(Recovery) provision | (773) | (252) | |
Balance at end of period | 611 | 1,238 | |
Quantitative allowance | |||
Collectively evaluated | 611 | 1,238 | |
Total quantitative allowance | 611 | 1,238 | |
Provision for credit losses | (773) | (252) | |
Residential Mortgage Jr. | Initial PCD Allowance | |||
Allowance for credit losses | |||
Balance at beginning of period | 804 | 3 | |
Balance at end of period | 804 | ||
Residential Mortgage Jr. | Adjustments | |||
Allowance for credit losses | |||
Balance at beginning of period | 1,238 | 29 | |
Balance at end of period | 1,238 | ||
Residential Mortgage Jr. | Adjustments | ASU 2016-13 | |||
Allowance for credit losses | |||
Balance at beginning of period | 226 | 11 | |
Balance at end of period | 226 | ||
HELOC | |||
Allowance for credit losses | |||
Balance at beginning of period | 16,698 | 4,327 | |
Charge-offs | (1,002) | (1,053) | |
Recoveries | 2,256 | 1,251 | |
Net (charge-offs) recoveries | 1,254 | 198 | |
(Recovery) provision | (4,627) | (1,311) | |
Balance at end of period | 13,325 | 16,698 | |
Quantitative allowance | |||
Collectively evaluated | 12,954 | 14,625 | |
Individually evaluated | 91 | 77 | |
Total quantitative allowance | 13,045 | 14,702 | |
Qualitative allowance | 280 | 1,996 | |
Provision for credit losses | (4,627) | (1,311) | |
HELOC | Initial PCD Allowance | |||
Allowance for credit losses | |||
Balance at beginning of period | 5,119 | 289 | |
Balance at end of period | 5,119 | ||
HELOC | Adjustments | |||
Allowance for credit losses | |||
Balance at beginning of period | 16,698 | 8,465 | |
Balance at end of period | 16,698 | ||
HELOC | Adjustments | ASU 2016-13 | |||
Allowance for credit losses | |||
Balance at beginning of period | 4,227 | 3,849 | |
Balance at end of period | 4,227 | ||
Residential Construction | |||
Allowance for credit losses | |||
Balance at beginning of period | 4,914 | 815 | |
Charge-offs | (29) | (32) | |
Recoveries | 60 | 111 | |
Net (charge-offs) recoveries | 31 | 79 | |
(Recovery) provision | 52 | (2,954) | |
Balance at end of period | 4,997 | 4,914 | |
Quantitative allowance | |||
Collectively evaluated | 4,989 | 4,733 | |
Total quantitative allowance | 4,989 | 4,733 | |
Qualitative allowance | 8 | 181 | |
Provision for credit losses | 52 | (2,954) | |
Residential Construction | Initial PCD Allowance | |||
Allowance for credit losses | |||
Balance at beginning of period | 1,302 | ||
Balance at end of period | 1,302 | ||
Residential Construction | Adjustments | |||
Allowance for credit losses | |||
Balance at beginning of period | 4,914 | 1,594 | |
Balance at end of period | 4,914 | ||
Residential Construction | Adjustments | ASU 2016-13 | |||
Allowance for credit losses | |||
Balance at beginning of period | 4,893 | 779 | |
Balance at end of period | 4,893 | ||
Other C&D | |||
Allowance for credit losses | |||
Balance at beginning of period | 67,197 | 6,211 | |
Charge-offs | (87) | (347) | |
Recoveries | 1,861 | 1,407 | |
Net (charge-offs) recoveries | 1,774 | 1,060 | |
(Recovery) provision | (31,378) | 40,279 | |
Balance at end of period | 37,593 | 67,197 | |
Quantitative allowance | |||
Collectively evaluated | 37,159 | 67,188 | |
Individually evaluated | 434 | 9 | |
Total quantitative allowance | 37,593 | 67,197 | |
Provision for credit losses | (31,378) | 40,279 | |
Other C&D | Initial PCD Allowance | |||
Allowance for credit losses | |||
Balance at beginning of period | 6,035 | 351 | |
Balance at end of period | 6,035 | ||
Other C&D | Adjustments | |||
Allowance for credit losses | |||
Balance at beginning of period | 67,197 | 12,150 | |
Balance at end of period | 67,197 | ||
Other C&D | Adjustments | ASU 2016-13 | |||
Allowance for credit losses | |||
Balance at beginning of period | 7,673 | 5,588 | |
Balance at end of period | 7,673 | ||
Consumer | |||
Allowance for credit losses | |||
Balance at beginning of period | 26,562 | 4,350 | |
Charge-offs | (8,809) | (6,158) | |
Recoveries | 2,075 | 1,922 | |
Net (charge-offs) recoveries | (6,734) | (4,236) | |
(Recovery) provision | 3,321 | 12,333 | |
Balance at end of period | 23,149 | 26,562 | |
Quantitative allowance | |||
Collectively evaluated | 21,887 | 18,435 | |
Individually evaluated | 120 | ||
Total quantitative allowance | 21,887 | 18,555 | |
Qualitative allowance | 1,262 | 8,007 | |
Provision for credit losses | 3,321 | 12,333 | |
Consumer | Initial PCD Allowance | |||
Allowance for credit losses | |||
Balance at beginning of period | 6,120 | 669 | |
Balance at end of period | 6,120 | ||
Consumer | Adjustments | |||
Allowance for credit losses | |||
Balance at beginning of period | 26,562 | 8,509 | |
Balance at end of period | 26,562 | ||
Consumer | Adjustments | ASU 2016-13 | |||
Allowance for credit losses | |||
Balance at beginning of period | 3,836 | 3,490 | |
Balance at end of period | 3,836 | ||
Multifamily | |||
Allowance for credit losses | |||
Balance at beginning of period | 7,887 | 1,557 | |
Recoveries | 3 | 71 | |
Net (charge-offs) recoveries | 3 | 71 | |
(Recovery) provision | (2,969) | 2,657 | |
Balance at end of period | 4,921 | 7,887 | |
Quantitative allowance | |||
Collectively evaluated | 4,921 | 7,887 | |
Total quantitative allowance | 4,921 | 7,887 | |
Provision for credit losses | (2,969) | 2,657 | |
Multifamily | Initial PCD Allowance | |||
Allowance for credit losses | |||
Balance at beginning of period | 902 | 97 | |
Balance at end of period | 902 | ||
Multifamily | Adjustments | |||
Allowance for credit losses | |||
Balance at beginning of period | 7,887 | 3,045 | |
Balance at end of period | 7,887 | ||
Multifamily | Adjustments | ASU 2016-13 | |||
Allowance for credit losses | |||
Balance at beginning of period | 1,212 | 1,391 | |
Balance at end of period | 1,212 | ||
Municipal | |||
Allowance for credit losses | |||
Balance at beginning of period | 1,510 | 956 | |
(Recovery) provision | (945) | (2,282) | |
Balance at end of period | 565 | 1,510 | |
Quantitative allowance | |||
Collectively evaluated | 565 | 685 | |
Total quantitative allowance | 565 | 685 | |
Qualitative allowance | 825 | ||
Provision for credit losses | (945) | (2,282) | |
Municipal | Initial PCD Allowance | |||
Allowance for credit losses | |||
Balance at beginning of period | 1,003 | ||
Balance at end of period | 1,003 | ||
Municipal | Adjustments | |||
Allowance for credit losses | |||
Balance at beginning of period | 1,510 | 1,870 | |
Balance at end of period | 1,510 | ||
Municipal | Adjustments | ASU 2016-13 | |||
Allowance for credit losses | |||
Balance at beginning of period | 919 | 914 | |
Balance at end of period | 919 | ||
CRE Owner Occupied | |||
Allowance for credit losses | |||
Balance at beginning of period | 97,104 | 10,879 | |
Charge-offs | (2,052) | (1,205) | |
Recoveries | 970 | 1,089 | |
Net (charge-offs) recoveries | (1,082) | (116) | |
(Recovery) provision | (34,228) | 16,468 | |
Balance at end of period | 61,794 | 97,104 | |
Quantitative allowance | |||
Collectively evaluated | 60,353 | 91,106 | |
Individually evaluated | 590 | 948 | |
Total quantitative allowance | 60,943 | 92,054 | |
Qualitative allowance | 851 | 5,050 | |
Provision for credit losses | (34,228) | 16,468 | |
CRE Owner Occupied | Initial PCD Allowance | |||
Allowance for credit losses | |||
Balance at beginning of period | 34,077 | 898 | |
Balance at end of period | 34,077 | ||
CRE Owner Occupied | Adjustments | |||
Allowance for credit losses | |||
Balance at beginning of period | 97,104 | 21,282 | |
Balance at end of period | 97,104 | ||
CRE Owner Occupied | Adjustments | ASU 2016-13 | |||
Allowance for credit losses | |||
Balance at beginning of period | 25,393 | 9,505 | |
Balance at end of period | 25,393 | ||
Non Owner Occupied CRE | |||
Allowance for credit losses | |||
Balance at beginning of period | 124,421 | 15,219 | |
Charge-offs | (863) | (601) | |
Recoveries | 1,070 | 518 | |
Net (charge-offs) recoveries | 207 | (83) | |
(Recovery) provision | (44,979) | 13,877 | |
Balance at end of period | 79,649 | 124,421 | |
Quantitative allowance | |||
Collectively evaluated | 77,494 | 116,571 | |
Individually evaluated | 196 | 6 | |
Total quantitative allowance | 77,690 | 116,577 | |
Qualitative allowance | 1,959 | 7,844 | |
Provision for credit losses | (44,979) | 13,877 | |
Non Owner Occupied CRE | Initial PCD Allowance | |||
Allowance for credit losses | |||
Balance at beginning of period | 45,787 | 656 | |
Balance at end of period | 45,787 | ||
Non Owner Occupied CRE | Adjustments | |||
Allowance for credit losses | |||
Balance at beginning of period | 124,421 | 29,773 | |
Balance at end of period | 124,421 | ||
Non Owner Occupied CRE | Adjustments | ASU 2016-13 | |||
Allowance for credit losses | |||
Balance at beginning of period | 35,067 | 13,898 | |
Balance at end of period | 35,067 | ||
C & I | |||
Allowance for credit losses | |||
Balance at beginning of period | 46,217 | 6,470 | |
Charge-offs | (3,853) | (4,654) | |
Recoveries | 3,812 | 3,810 | |
Net (charge-offs) recoveries | (41) | (844) | |
(Recovery) provision | (18,009) | 6,798 | |
Balance at end of period | 28,167 | 46,217 | |
Quantitative allowance | |||
Collectively evaluated | 25,702 | 38,805 | |
Individually evaluated | 1,003 | 7 | |
Total quantitative allowance | 26,705 | 38,812 | |
Qualitative allowance | 1,462 | 7,405 | |
Provision for credit losses | (18,009) | 6,798 | |
C & I | Initial PCD Allowance | |||
Allowance for credit losses | |||
Balance at beginning of period | 18,320 | 39 | |
Balance at end of period | 18,320 | ||
C & I | Adjustments | |||
Allowance for credit losses | |||
Balance at beginning of period | 46,217 | 12,659 | |
Balance at end of period | 46,217 | ||
C & I | Adjustments | ASU 2016-13 | |||
Allowance for credit losses | |||
Balance at beginning of period | $ 9,284 | 6,150 | |
Balance at end of period | 9,284 | ||
CSFL | |||
Allowance for credit losses | |||
Charge-offs | $ (158,200) | ||
CSFL | Unfunded Commitment | |||
Allowance for credit losses | |||
(Recovery) provision | 9,600 | ||
Quantitative allowance | |||
Provision for credit losses | $ 9,600 |
Allowance for Credit Losses (_4
Allowance for Credit Losses (ACL) - Aggregated analysis of the changes in allowance for loan losses Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for credit losses | ||||
Balance at beginning of period | $ 457,309 | $ 56,927 | ||
Loans charged-off | (16,899) | (14,602) | ||
Recoveries of loans previously charged off | 13,800 | 11,777 | ||
Net (charge-offs) recoveries | (3,099) | (2,825) | ||
Provision for credit losses | (152,403) | 89,923 | ||
Balance at end of period | 301,807 | 457,309 | $ 56,927 | |
As previously recorded by acquiree | ||||
Allowance for credit losses | ||||
Balance at beginning of period | 61,991 | 55,798 | ||
Loans charged-off | (9,775) | |||
Recoveries of loans previously charged off | 3,914 | |||
Net (charge-offs) recoveries | (5,861) | |||
Provision for credit losses | 12,777 | |||
Reduction due to loan removals | (723) | |||
Balance at end of period | 61,991 | $ 55,798 | ||
Non-acquired loans | ||||
Allowance for credit losses | ||||
Balance at beginning of period | 56,927 | 51,194 | ||
Loans charged-off | (6,917) | |||
Recoveries of loans previously charged off | 3,367 | |||
Provision for credit losses | 9,283 | |||
Balance at end of period | 56,927 | 51,194 | ||
Non-acquired loans | As previously recorded by acquiree | ||||
Allowance for credit losses | ||||
Balance at beginning of period | 56,927 | 51,194 | ||
Loans charged-off | (6,917) | |||
Recoveries of loans previously charged off | 3,367 | |||
Net (charge-offs) recoveries | (3,550) | |||
Provision for credit losses | 9,283 | |||
Balance at end of period | 56,927 | 51,194 | ||
Acquired non-credit impaired loans | ||||
Allowance for credit losses | ||||
Loans charged-off | (2,858) | |||
Recoveries of loans previously charged off | 547 | |||
Provision for credit losses | 2,311 | |||
Acquired non-credit impaired loans | As previously recorded by acquiree | ||||
Allowance for credit losses | ||||
Loans charged-off | (2,858) | |||
Recoveries of loans previously charged off | 547 | |||
Net (charge-offs) recoveries | (2,311) | |||
Provision for credit losses | 2,311 | |||
Acquired credit impaired loans | ||||
Allowance for credit losses | ||||
Balance at beginning of period | $ 5,064 | 4,604 | ||
Provision for credit losses | 1,183 | |||
Balance at end of period | 5,064 | 4,604 | ||
Acquired credit impaired loans | As previously recorded by acquiree | ||||
Allowance for credit losses | ||||
Balance at beginning of period | $ 5,064 | 4,604 | ||
Provision for credit losses | 1,183 | |||
Reduction due to loan removals | (723) | |||
Balance at end of period | $ 5,064 | $ 4,604 |
Allowance for Credit Losses (_5
Allowance for Credit Losses (ACL) - Aggregated analysis of the changes in allowance for loan losses Details (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | |
Allowance for loan losses: | |||||
Balance at beginning of period | $ 457,309,000 | $ 56,927,000 | |||
Charge-offs | (16,899,000) | (14,602,000) | |||
Recoveries | 13,800,000 | 11,777,000 | |||
(Recovery) provision | (152,403,000) | 89,923,000 | |||
Balance at end of period | 301,807,000 | 457,309,000 | $ 56,927,000 | ||
Loans individually evaluated for impairment | 2,464,000 | 1,249,000 | |||
Loans collectively evaluated for impairment | 292,210,000 | 415,929,000 | |||
Loans | |||||
Loans individually evaluated for impairment | $ 1,000,000 | $ 500,000 | |||
Total loans | 23,928,166,000 | 24,664,134,000 | |||
Construction and land development | Commercial loans | |||||
Loans | |||||
Total loans | 2,029,216,000 | 1,890,846,000 | |||
Commercial non-owner occupied | Commercial loans | |||||
Loans | |||||
Total loans | 6,735,699,000 | 6,152,246,000 | |||
Consumer Owner Occupied Loans | Consumer portfolio loans | |||||
Loans | |||||
Total loans | 3,638,364,000 | 3,682,667,000 | |||
Home equity loans | Consumer portfolio loans | |||||
Loans | |||||
Total loans | 1,168,594,000 | 1,292,141,000 | |||
Commercial and industrial | Commercial loans | |||||
Loans | |||||
Total loans | 3,761,133,000 | 5,046,310,000 | |||
Other income producing property | Commercial loans | |||||
Loans | |||||
Total loans | 696,804,000 | 854,900,000 | |||
Consumer loans | Consumer portfolio loans | |||||
Loans | |||||
Total loans | 904,657,000 | 894,334,000 | |||
Other loans | Consumer portfolio loans | |||||
Loans | |||||
Total loans | 23,583,000 | 17,993,000 | |||
Non-acquired loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 56,927,000 | 51,194,000 | |||
Charge-offs | (6,917,000) | ||||
Recoveries | 3,367,000 | ||||
(Recovery) provision | 9,283,000 | ||||
Balance at end of period | 56,927,000 | ||||
Loans individually evaluated for impairment | 1,346,000 | ||||
Loans collectively evaluated for impairment | 55,581,000 | ||||
Loans | |||||
Loans individually evaluated for impairment | 58,532,000 | ||||
Loans collectively evaluated for impairment | 9,194,299,000 | ||||
Total loans | 9,252,831,000 | ||||
Non-acquired loans | Construction and land development | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 6,104,000 | 5,682,000 | |||
Charge-offs | (78,000) | ||||
Recoveries | 1,016,000 | ||||
(Recovery) provision | (516,000) | ||||
Balance at end of period | 6,104,000 | ||||
Loans individually evaluated for impairment | 617,000 | ||||
Loans collectively evaluated for impairment | 5,487,000 | ||||
Loans | |||||
Loans individually evaluated for impairment | 35,201,000 | ||||
Loans collectively evaluated for impairment | 933,159,000 | ||||
Total loans | 968,360,000 | ||||
Non-acquired loans | Commercial non-owner occupied | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 10,699,000 | 8,754,000 | |||
Charge-offs | (3,000) | ||||
Recoveries | 76,000 | ||||
(Recovery) provision | 1,872,000 | ||||
Balance at end of period | 10,699,000 | ||||
Loans collectively evaluated for impairment | 10,699,000 | ||||
Loans | |||||
Loans individually evaluated for impairment | 379,000 | ||||
Loans collectively evaluated for impairment | 1,810,759,000 | ||||
Total loans | 1,811,138,000 | ||||
Non-acquired loans | Commercial owner occupied real estate loan | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 10,581,000 | 9,369,000 | |||
Charge-offs | (87,000) | ||||
Recoveries | 174,000 | ||||
(Recovery) provision | 1,125,000 | ||||
Balance at end of period | 10,581,000 | ||||
Loans individually evaluated for impairment | 24,000 | ||||
Loans collectively evaluated for impairment | 10,557,000 | ||||
Loans | |||||
Loans individually evaluated for impairment | 6,575,000 | ||||
Loans collectively evaluated for impairment | 1,777,442,000 | ||||
Total loans | 1,784,017,000 | ||||
Non-acquired loans | Consumer Owner Occupied Loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 12,596,000 | 11,913,000 | |||
Charge-offs | (50,000) | ||||
Recoveries | 213,000 | ||||
(Recovery) provision | 520,000 | ||||
Balance at end of period | 12,596,000 | ||||
Loans individually evaluated for impairment | 102,000 | ||||
Loans collectively evaluated for impairment | 12,494,000 | ||||
Loans | |||||
Loans individually evaluated for impairment | 5,141,000 | ||||
Loans collectively evaluated for impairment | 2,113,698,000 | ||||
Total loans | 2,118,839,000 | ||||
Non-acquired loans | Home equity loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 3,188,000 | 3,434,000 | |||
Charge-offs | (203,000) | ||||
Recoveries | 265,000 | ||||
(Recovery) provision | (308,000) | ||||
Balance at end of period | 3,188,000 | ||||
Loans individually evaluated for impairment | 132,000 | ||||
Loans collectively evaluated for impairment | 3,056,000 | ||||
Loans | |||||
Loans individually evaluated for impairment | 2,461,000 | ||||
Loans collectively evaluated for impairment | 516,167,000 | ||||
Total loans | 518,628,000 | ||||
Non-acquired loans | Commercial and industrial | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 8,339,000 | 7,454,000 | |||
Charge-offs | (622,000) | ||||
Recoveries | 351,000 | ||||
(Recovery) provision | 1,156,000 | ||||
Balance at end of period | 8,339,000 | ||||
Loans individually evaluated for impairment | 366,000 | ||||
Loans collectively evaluated for impairment | 7,973,000 | ||||
Loans | |||||
Loans individually evaluated for impairment | 6,578,000 | ||||
Loans collectively evaluated for impairment | 1,274,281,000 | ||||
Total loans | 1,280,859,000 | ||||
Non-acquired loans | Other income producing property | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 1,336,000 | 1,446,000 | |||
Charge-offs | (31,000) | ||||
Recoveries | 94,000 | ||||
(Recovery) provision | (173,000) | ||||
Balance at end of period | 1,336,000 | ||||
Loans individually evaluated for impairment | 50,000 | ||||
Loans collectively evaluated for impairment | 1,286,000 | ||||
Loans | |||||
Loans individually evaluated for impairment | 2,024,000 | ||||
Loans collectively evaluated for impairment | 216,593,000 | ||||
Total loans | 218,617,000 | ||||
Non-acquired loans | Consumer loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 3,947,000 | 3,101,000 | |||
Charge-offs | (5,843,000) | ||||
Recoveries | 1,178,000 | ||||
(Recovery) provision | 5,511,000 | ||||
Balance at end of period | 3,947,000 | ||||
Loans individually evaluated for impairment | 55,000 | ||||
Loans collectively evaluated for impairment | 3,892,000 | ||||
Loans | |||||
Loans individually evaluated for impairment | 173,000 | ||||
Loans collectively evaluated for impairment | 538,308,000 | ||||
Total loans | 538,481,000 | ||||
Non-acquired loans | Other loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 137,000 | 41,000 | |||
(Recovery) provision | 96,000 | ||||
Balance at end of period | 137,000 | ||||
Loans collectively evaluated for impairment | 137,000 | ||||
Loans | |||||
Loans collectively evaluated for impairment | 13,892,000 | ||||
Total loans | 13,892,000 | ||||
Acquired non-credit impaired loans | |||||
Allowance for loan losses: | |||||
Charge-offs | (2,858,000) | ||||
Recoveries | 547,000 | ||||
(Recovery) provision | 2,311,000 | ||||
Loans | |||||
Loans collectively evaluated for impairment | 1,760,427,000 | ||||
Total loans | 1,760,427,000 | ||||
Acquired non-credit impaired loans | Construction and land development | |||||
Allowance for loan losses: | |||||
Charge-offs | (44,000) | ||||
Recoveries | 3,000 | ||||
(Recovery) provision | 41,000 | ||||
Loans | |||||
Loans collectively evaluated for impairment | 33,569,000 | ||||
Total loans | 33,569,000 | ||||
Acquired non-credit impaired loans | Commercial non-owner occupied | |||||
Loans | |||||
Loans collectively evaluated for impairment | 447,441,000 | ||||
Total loans | 447,441,000 | ||||
Acquired non-credit impaired loans | Commercial owner occupied real estate loan | |||||
Allowance for loan losses: | |||||
Charge-offs | (786,000) | ||||
(Recovery) provision | 786,000 | ||||
Loans | |||||
Loans collectively evaluated for impairment | 307,193,000 | ||||
Total loans | 307,193,000 | ||||
Acquired non-credit impaired loans | Consumer Owner Occupied Loans | |||||
Allowance for loan losses: | |||||
Charge-offs | (6,000) | ||||
Recoveries | 26,000 | ||||
(Recovery) provision | (20,000) | ||||
Loans | |||||
Loans collectively evaluated for impairment | 496,431,000 | ||||
Total loans | 496,431,000 | ||||
Acquired non-credit impaired loans | Home equity loans | |||||
Allowance for loan losses: | |||||
Charge-offs | (263,000) | ||||
Recoveries | 206,000 | ||||
(Recovery) provision | 57,000 | ||||
Loans | |||||
Loans collectively evaluated for impairment | 188,732,000 | ||||
Total loans | 188,732,000 | ||||
Acquired non-credit impaired loans | Commercial and industrial | |||||
Allowance for loan losses: | |||||
Charge-offs | (1,289,000) | ||||
Recoveries | 190,000 | ||||
(Recovery) provision | 1,099,000 | ||||
Loans | |||||
Loans collectively evaluated for impairment | 101,880,000 | ||||
Total loans | 101,880,000 | ||||
Acquired non-credit impaired loans | Other income producing property | |||||
Allowance for loan losses: | |||||
Charge-offs | (26,000) | ||||
Recoveries | 71,000 | ||||
(Recovery) provision | (45,000) | ||||
Loans | |||||
Loans collectively evaluated for impairment | 95,697,000 | ||||
Total loans | 95,697,000 | ||||
Acquired non-credit impaired loans | Consumer loans | |||||
Allowance for loan losses: | |||||
Charge-offs | (444,000) | ||||
Recoveries | 51,000 | ||||
(Recovery) provision | 393,000 | ||||
Loans | |||||
Loans collectively evaluated for impairment | 89,484,000 | ||||
Total loans | 89,484,000 | ||||
Acquired credit impaired loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 5,064,000 | 4,604,000 | |||
(Recovery) provision | 1,183,000 | ||||
Reduction due to loan removals | (723,000) | ||||
Balance at end of period | 5,064,000 | ||||
Loans collectively evaluated for impairment | 5,064,000 | ||||
Loans | |||||
Loans collectively evaluated for impairment | 361,846,000 | ||||
Total loans | 361,846,000 | ||||
Acquired credit impaired loans | Real estate | Commercial loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 1,377,000 | 801,000 | |||
(Recovery) provision | 577,000 | ||||
Reduction due to loan removals | (1,000) | ||||
Balance at end of period | 1,377,000 | ||||
Loans collectively evaluated for impairment | 1,377,000 | ||||
Loans | |||||
Loans collectively evaluated for impairment | 130,938,000 | ||||
Total loans | 130,938,000 | ||||
Acquired credit impaired loans | Real estate | Consumer portfolio loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 2,555,000 | 2,246,000 | |||
(Recovery) provision | 716,000 | ||||
Reduction due to loan removals | (407,000) | ||||
Balance at end of period | 2,555,000 | ||||
Loans collectively evaluated for impairment | 2,555,000 | ||||
Loans | |||||
Loans collectively evaluated for impairment | 163,359,000 | ||||
Total loans | 163,359,000 | ||||
Acquired credit impaired loans | Construction and land development | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 569,000 | 717,000 | |||
(Recovery) provision | (148,000) | ||||
Balance at end of period | 569,000 | ||||
Loans collectively evaluated for impairment | 569,000 | ||||
Loans | |||||
Loans collectively evaluated for impairment | 25,032,000 | ||||
Total loans | 25,032,000 | ||||
Acquired credit impaired loans | Commercial and industrial | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 24,000 | 79,000 | |||
(Recovery) provision | 260,000 | ||||
Reduction due to loan removals | (315,000) | ||||
Balance at end of period | 24,000 | ||||
Loans collectively evaluated for impairment | 24,000 | ||||
Loans | |||||
Loans collectively evaluated for impairment | 7,029,000 | ||||
Total loans | 7,029,000 | ||||
Acquired credit impaired loans | Consumer loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | $ 539,000 | $ 761,000 | |||
(Recovery) provision | (222,000) | ||||
Balance at end of period | 539,000 | ||||
Loans collectively evaluated for impairment | 539,000 | ||||
Loans | |||||
Loans collectively evaluated for impairment | 35,488,000 | ||||
Total loans | $ 35,488,000 |
Other Real Estate Owned and B_3
Other Real Estate Owned and Bank Premises Held for Sale (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)property | Dec. 31, 2020USD ($)property | |
OREO and Bank Premises | ||
Balance at the beginning of the period | $ 47,920,000 | $ 11,964,000 |
Additions, net | 8,015,000 | 27,340,000 |
Write-downs | (2,067,000) | (1,085,000) |
Sold | (40,328,000) | (18,610,000) |
Balance at the end of the period | $ 12,314,000 | $ 47,920,000 |
Number of properties held | property | 12 | 42 |
Number of properties premises held for sale | property | 9 | 33 |
Residential real estate consumer mortgage loans in foreclosure, carrying value | $ 3,600,000 | |
OREO | ||
OREO and Bank Premises | ||
Balance at the beginning of the period | 11,914,000 | $ 6,539,000 |
Additions, net | 3,642,000 | 5,553,000 |
Write-downs | (1,949,000) | (729,000) |
Sold | (10,871,000) | (9,380,000) |
Balance at the end of the period | 2,736,000 | 11,914,000 |
Bank Premises Held for Sale | ||
OREO and Bank Premises | ||
Balance at the beginning of the period | 36,006,000 | 5,425,000 |
Additions, net | 4,373,000 | 21,787,000 |
Write-downs | (118,000) | (356,000) |
Sold | (29,457,000) | (9,230,000) |
Balance at the end of the period | 9,578,000 | 36,006,000 |
Residential real estate | ||
OREO and Bank Premises | ||
Other Real Estate In Foreclosure | 558,000 | |
CSFL | ||
OREO and Bank Premises | ||
Acquired | (1,226,000) | 28,311,000 |
CSFL | OREO | ||
OREO and Bank Premises | ||
Acquired | 9,931,000 | |
CSFL | Bank Premises Held for Sale | ||
OREO and Bank Premises | ||
Acquired | $ (1,226,000) | $ 18,380,000 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 07, 2020 | |
Premises and equipment | ||||
Total | $ 844,031 | $ 836,390 | ||
Less accumulated depreciation | (285,532) | (257,151) | ||
Net premises and equipment | 558,499 | 579,239 | ||
Depreciation expense charged to operations | 29,200 | 25,300 | $ 18,200 | |
2018-15 | ||||
Premises and equipment | ||||
Capitalized implementation costs related to internal use software | 0 | |||
CSFL | ||||
Premises and equipment | ||||
Premises and equipment | $ 313,435 | |||
Land | ||||
Premises and equipment | ||||
Total | 145,276 | 152,263 | ||
Buildings and leasehold improvements | ||||
Premises and equipment | ||||
Total | $ 404,655 | 406,078 | ||
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 | $ 169,271 | 161,009 | ||
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 | $ 14,518 | 3,618 | ||
Computer software | ||||
Premises and equipment | ||||
Useful Life | 36 months | |||
Total | $ 43,500 | 37,400 | ||
Depreciation expense charged to operations | 4,800 | 2,400 | $ 1,200 | |
Lease right of use assets | ||||
Premises and equipment | ||||
Total | $ 110,311 | $ 113,422 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Goodwill | |||
Goodwill, Beginning Balance | 1,563,942 | 1,002,900 | |
Goodwill subsequent fair value adjustment from CenterState acquisition | 1,327 | ||
Goodwill, Ending Balance | $ 1,581,085 | 1,581,085 | 1,563,942 |
CSFL | |||
Goodwill | |||
Additions, Goodwill from acquisition | $ 561,042 | ||
Duncan-Williams, Inc. | |||
Goodwill | |||
Additions, Goodwill from acquisition | $ 15,816 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of gross carrying amounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other intangible assets | |||
Gross carrying amount | $ 257,874 | $ 258,554 | |
Accumulated amortization | (129,807) | (95,962) | |
Net carrying amount | 128,067 | 162,592 | |
Amortization expense | 35,192 | $ 26,992 | $ 13,084 |
Estimated amortization expense for other intangibles for each of the next five years | |||
2022 | 30,056 | ||
2023 | 24,634 | ||
2024 | 19,790 | ||
2025 | 16,480 | ||
2026 | 13,264 | ||
Thereafter | 23,843 | ||
Total estimated amortization expense for other intangibles for the next five years | $ 128,067 | ||
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, 2021 | Dec. 31, 2020 |
Deposits | ||
Certificates of deposit | $ 2,810,075 | $ 3,748,605 |
Non-interest bearing checking | 11,498,840 | 9,711,338 |
Interest-bearing checking | 9,018,987 | 6,955,575 |
Savings | 3,350,547 | 2,694,011 |
Money market | 8,376,380 | 7,584,353 |
Time deposits | 6,100 | |
Total deposits | $ 35,054,829 | $ 30,693,882 |
Deposits - Certificates of depo
Deposits - Certificates of deposits and Scheduled maturities of time deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits | ||
Aggregate amounts of certificates of deposits in denominations of $250,000 or more | $ 603,200 | $ 814,200 |
Traditional, out-of-market brokered deposits | 325,000 | $ 600,000 |
Scheduled maturities of time deposits of all denominations | ||
2022 | 2,078,328 | |
2023 | 410,875 | |
2024 | 121,266 | |
2025 | 138,171 | |
2026 | 58,139 | |
Thereafter | 3,296 | |
Time deposits | $ 2,810,075 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Rate | |||
Repurchase agreement | $ 400,000 | $ 394,900 | |
Carrying amount of the securities pledged to collateralize repurchase agreements | 471,300 | 515,900 | |
Federal funds purchased and securities sold under repurchase agreements | |||
Amount | |||
At period-end | 781,239 | 779,666 | $ 298,741 |
Average for the year | 877,969 | 553,110 | 282,172 |
Maximum month-end balance | $ 898,663 | $ 779,666 | $ 321,833 |
Rate | |||
At period-end (as a percent) | 0.12% | 0.17% | 0.90% |
Average for the year (as a percent) | 0.14% | 0.35% | 0.93% |
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, 2021 | Dec. 31, 2020 | |
Other Borrowings | ||
Long term borrowings | $ 327,066 | $ 390,179 |
Total borrowings | 327,066 | 390,179 |
Short term borrowings, Average balance | 1,986 | 745,939 |
Long term borrowings, Average balance | 352,813 | 271,493 |
Total borrowings, Average balance | $ 354,799 | $ 1,017,432 |
Fixed interest rate (as a percent) | 4.40% | 4.40% |
Weighted average interest rate (as a percent) | 4.35% | 1.58% |
Junior subordinated debt securities | $ 117,200 | $ 144,300 |
Short term borrowings | ||
Other Borrowings | ||
Weighted average interest rate (as a percent) | 2.22% | 0.63% |
SCBT Capital Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 12,372 | $ 12,372 |
Fixed interest rate (as a percent) | 1.99% | 2.01% |
SCBT Capital Trust II junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 8,248 | $ 8,248 |
Fixed interest rate (as a percent) | 1.99% | 2.01% |
SCBT Capital Trust III junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 20,619 | $ 20,619 |
Fixed interest rate (as a percent) | 1.79% | 1.81% |
SAVB Capital Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 6,186 | $ 6,186 |
Fixed interest rate (as a percent) | 2.97% | 3.09% |
SAVB Capital Trust II junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 4,124 | $ 4,124 |
Fixed interest rate (as a percent) | 2.40% | 2.42% |
TSB Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 3,093 | $ 3,093 |
Fixed interest rate (as a percent) | 1.92% | 1.94% |
Southeastern Bank Financial Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 10,310 | $ 10,310 |
Fixed interest rate (as a percent) | 1.60% | 1.62% |
Southeastern Bank Financial Statutory Trust II junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 10,310 | $ 10,310 |
Fixed interest rate (as a percent) | 1.60% | 1.62% |
CSBC Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 15,464 | $ 15,464 |
Fixed interest rate (as a percent) | 1.77% | 1.79% |
Community Capital Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 10,310 | $ 10,310 |
Fixed interest rate (as a percent) | 1.75% | 1.77% |
FCRV Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 5,155 | $ 5,155 |
Fixed interest rate (as a percent) | 1.90% | 1.92% |
Provident Community Bancshares Capital Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 4,124 | $ 4,124 |
Fixed interest rate (as a percent) | 1.87% | 1.97% |
Provident Community Bancshares Capital Trust II junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 8,248 | $ 8,248 |
Fixed interest rate (as a percent) | 1.91% | 1.97% |
CenterState Banks of Florida Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 10,310 | |
Fixed interest rate (as a percent) | 3.30% | |
Valrico Capital Statutory Trust junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 2,577 | |
Fixed interest rate (as a percent) | 2.93% | |
Federal Trust Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 5,155 | |
Fixed interest rate (as a percent) | 3.18% | |
Gulfstream Bancshares Capital Trust II junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 3,093 | |
Fixed interest rate (as a percent) | 1.93% | |
Homestead Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 10,495 | |
Fixed interest rate (as a percent) | 1.88% | |
BSA Financial Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 5,155 | |
Fixed interest rate (as a percent) | 1.77% | |
MRCB Statutory Trust II junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 3,093 | |
Fixed interest rate (as a percent) | 1.82% | |
Fair Market Value Discount Trust Preferred Debt Acquired | ||
Other Borrowings | ||
Other long term debt acquired | $ (1,398) | $ (14,116) |
Junior Subordinated Debt | ||
Other Borrowings | ||
Long term borrowings | 117,165 | 144,325 |
Long term borrowings, Average balance | $ 130,048 | $ 131,817 |
Fixed interest rate (as a percent) | 1.89% | 2.05% |
Weighted average interest rate (as a percent) | 1.97% | 2.51% |
Junior subordinated debt securities | $ 117,200 | |
Junior Subordinated Debt | LIBOR | Minimum | ||
Other Borrowings | ||
Spread on variable rate basis (as a percent) | 1.40% | |
Junior Subordinated Debt | LIBOR | Maximum | ||
Other Borrowings | ||
Spread on variable rate basis (as a percent) | 2.85% | |
Residential Warranty Corp. subordinated note | ||
Other Borrowings | ||
Long term borrowings | $ 7,000 | |
Fixed interest rate (as a percent) | 5.00% | |
Messiah College subordinated note | ||
Other Borrowings | ||
Long term borrowings | $ 4,000 | |
Fixed interest rate (as a percent) | 5.00% | |
National Bank of Commerce subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 25,000 | |
Fixed interest rate (as a percent) | 6.00% | 6.00% |
National Bank of Commerce subordinated debt | LIBOR | ||
Other Borrowings | ||
Spread on variable rate basis (as a percent) | 4.79% | |
Landmark Bancshares subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 13,000 | $ 13,000 |
Fixed interest rate (as a percent) | 6.50% | 6.50% |
Landmark Bancshares subordinated debt | LIBOR | ||
Other Borrowings | ||
Spread on variable rate basis (as a percent) | 4.67% | |
CenterState Bank Corporation subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 200,000 | $ 200,000 |
Debt issuance cost | $ (3,100) | $ (3,100) |
Fixed interest rate (as a percent) | 5.75% | 5.75% |
CenterState Bank Corporation subordinated debt | LIBOR | ||
Other Borrowings | ||
Fixed interest rate (as a percent) | 5.75% | |
Spread on variable rate basis (as a percent) | 5.62% | |
Long-term subordinated debt costs | ||
Other Borrowings | ||
Debt issuance cost | $ (3,099) | $ (3,146) |
Subordinated Debt. | ||
Other Borrowings | ||
Long term borrowings | 209,901 | 245,854 |
Long term borrowings, Average balance | $ 222,765 | $ 139,584 |
Fixed interest rate (as a percent) | 5.80% | 5.78% |
Weighted average interest rate (as a percent) | 5.81% | 5.69% |
Other. | ||
Other Borrowings | ||
Long term borrowings, Average balance | $ 92 | |
Weighted average interest rate (as a percent) | 0.50% | |
Long term borrowings | ||
Other Borrowings | ||
Fixed interest rate (as a percent) | 4.40% | |
Weighted average interest rate (as a percent) | 4.36% | 3.60% |
Other Borrowings - Short-Term B
Other Borrowings - Short-Term Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
FHLB Advances | |||
Outstanding advances | $ 0 | $ 0 | $ 0 |
Non- interest expense | $ (11,706) | ||
Short term borrowings | |||
FHLB Advances | |||
Long-term Debt, Weighted Average Interest Rate, over Time | 2.22% | 0.63% | |
FHLB Advances | |||
FHLB Advances | |||
Loans pledged via a blanket lien to the FHLB for advances and letters of credit | $ 3,700 | ||
Investment securities pledged | 227,600 | ||
Total borrowing capacity at FHLB | 2,800,000 | ||
Letter of credit borrowed | 12,000 | ||
Unused net credit available with the FHLB | 2,800,000 | ||
Average amount of FHLB advances outstanding | 2,000 | $ 745,900 | |
Payments of FHLB advances | 700,000 | ||
FHLB Advances | Interest rate swap | |||
FHLB Advances | |||
Non- interest expense | 38,800 | ||
FRB Borrowings | |||
FHLB Advances | |||
Letter of credit borrowed | $ 0 | 0 | $ 0 |
Maximum borrowing capacity | 981,100 | ||
Loans secured by blanket lien | $ 1,600 |
Other Borrowings - Junior Subor
Other Borrowings - Junior Subordinated Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Junior Subordinated Debt | |||
Junior subordinated debt securities | $ 117,200 | $ 144,300 | |
Discount | 1,400 | $ 14,100 | |
Trust preferred securities redeemed | 39,900 | ||
Extinguishment of debt cost | $ (11,706) | ||
Junior Subordinated Debt | |||
Junior Subordinated Debt | |||
Debt instrument term | 5 years | ||
Junior subordinated debt securities | $ 117,200 | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 1.89% | 2.05% | |
Long-term Debt, Weighted Average Interest Rate, over Time | 1.97% | 2.51% | |
Trust preferred securities redeemed | $ 38,500 | ||
Extinguishment of debt cost | $ 11,700 | ||
Junior Subordinated Debt net of discount | |||
Junior Subordinated Debt | |||
Long-term Debt, Weighted Average Interest Rate, over Time | 2.85% | 3.56% | |
Trusts | Junior Subordinated Debt | |||
Junior Subordinated Debt | |||
Amount of trust preferred securities excluded from Tier 1 capital | $ 0 | ||
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 | 117,200 | ||
Discount | 1,400 | ||
Amount paid to holders, if the entity call backs the subordinated debt securities | $ 118,600 | ||
Discount amortization period | 4 years |
Other Borrowings - Subordinated
Other Borrowings - Subordinated Debt and Notes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Borrowings | ||
Subordinated debentures redeemed | $ 39.9 | |
CenterState Bank Corporation subordinated debt | ||
Other Borrowings | ||
Subordinated Debt | $ 200 | |
Debt issuance cost | $ 3.1 | 3.1 |
Subordinated Debt. | ||
Other Borrowings | ||
Subordinated Debt | $ 209.9 | |
Discount amortization period | 7 years 6 months | |
Weighted average cost of the subordinated debt | 5.80% | 5.78% |
Weighted average cost year to date | 5.81% | 5.69% |
Subordinated debt qualify for Tier 2 | $ 213 | |
Subordinated debt do not qualify for Tier 2 | 11 | |
Subordinated debentures redeemed | 25 | |
Subordinate notes matured | $ 11 | |
Subordinated Debt net of discount | ||
Other Borrowings | ||
Weighted average cost year to date | 6.06% | 5.93% |
Other Borrowings - Lines of Cre
Other Borrowings - Lines of Credit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Nov. 15, 2021 | Dec. 31, 2020 | |
Principal maturities of other borrowings | |||
Thereafter | $ 327,066 | ||
Total borrowings | 327,066 | ||
Unsecured line of credit | |||
Other Borrowings | |||
Maximum borrowing capacity | $ 100,000 | ||
Letter of credit outstanding | 0 | $ 0 | |
Average balance of line of credit | $ 2,000 | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 2.22% | ||
Junior Subordinated Debt | |||
Other Borrowings | |||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 1.89% | 2.05% | |
Principal maturities of other borrowings | |||
Thereafter | $ 117,165 | ||
Total borrowings | 117,165 | ||
FHLB Advances | |||
Other Borrowings | |||
Letter of credit outstanding | $ 12,000 | ||
Subordinated Debt. | |||
Other Borrowings | |||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 5.80% | 5.78% | |
Principal maturities of other borrowings | |||
Thereafter | $ 209,901 | ||
Total borrowings | $ 209,901 | ||
SOFR | Unsecured line of credit | |||
Other Borrowings | |||
Spread on variable rate basis (as a percent) | 1.40% |
Income Taxes - Provision for in
Income Taxes - Provision for income taxes breakup (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 43,959 | $ 16,245 | $ 40,375 |
State | 16,512 | 13,296 | 4,965 |
Total current tax expense | 60,471 | 29,541 | 45,340 |
Deferred: | |||
Federal | 61,521 | (36,801) | (1,598) |
State | 6,744 | (9,400) | 200 |
Total deferred tax (benefit) expense | 68,265 | (46,201) | (1,398) |
(Benefit) provision for income taxes | $ 128,736 | $ (16,660) | $ 43,942 |
Federal statutory income tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
Income Taxes - Provision for _2
Income Taxes - Provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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 | $ 126,899 | $ 21,834 | $ 48,389 |
Increase (reduction) of taxes resulting from: | |||
State income taxes, net of federal tax benefit | 18,372 | 3,077 | 4,080 |
Non- deductible merger expenses | 1,344 | ||
Increase in cash surrender value of BOLI policies | (3,866) | (2,389) | (1,210) |
Tax-exempt interest | (5,450) | (2,257) | (1,877) |
Income tax credits | (11,759) | (7,138) | (6,881) |
Non-deductible FDIC premiums | 2,380 | 1,364 | 133 |
Non-deductible executive compensation | 530 | 1,016 | 315 |
Benefit of tax loss carryback under CARES Act | (31,468) | ||
Other, net | 1,630 | (2,043) | 993 |
(Benefit) provision for income taxes | 128,736 | (16,660) | $ 43,942 |
Components of the net deferred tax asset | |||
Allowance for loan losses | 81,767 | 119,602 | |
Other-than-temporary impairment on SBIC investments | 268 | ||
Share-based compensation | 6,290 | 2,807 | |
Pension plan and post-retirement benefits | 752 | 516 | |
Deferred compensation | 14,437 | 13,671 | |
Purchase accounting adjustments | 11,772 | ||
Other real estate owned | 1,577 | 899 | |
Net operating loss and tax credit carryforwards | 20,659 | 26,229 | |
Deferred loan fees and costs | 12,826 | ||
Nonaccrual Interest | 88 | 3,141 | |
Lease liability | 28,514 | 28,179 | |
Mark to market assets | 11,788 | ||
Unrealized losses on investment securities available for sale | 6,691 | ||
Other | 719 | 603 | |
Total deferred tax assets | 173,282 | 220,513 | |
Unrealized gains on investment securities available for sale | 13,026 | ||
Depreciation | 21,028 | 18,326 | |
Intangible assets | 27,732 | 34,648 | |
Net deferred loan costs | 3,579 | ||
Right of use assets | 27,136 | 27,012 | |
Prepaid expense | 725 | 1,950 | |
Tax deductible goodwill | 5,994 | 1,302 | |
Mortgage servicing rights | 16,100 | 6,134 | |
Purchase accounting adjustments | 890 | ||
Other | 302 | 1,534 | |
Total deferred tax liabilities | 103,486 | 103,932 | |
Net deferred tax assets before valuation allowance | 69,796 | 116,581 | |
Less, valuation allowance | (4,832) | (5,635) | |
Net deferred tax assets | $ 64,964 | $ 110,946 |
Income Taxes - Additional infor
Income Taxes - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | |
Income Taxes | ||
Benefit of tax loss carryback under CARES Act | $ (31,468) | |
Unrecognized tax benefits | $ 0 | |
Federal | ||
Income Taxes | ||
Operating loss carryforwards | 91,900 | 61,800 |
Federal | CSFL | ||
Income Taxes | ||
Operating loss carryforwards | 62,900 | |
Annual limitation on operating loss carryforwards | 16,000 | |
Valuation allowance relating to operating loss carryforwards | 20,700 | |
State | ||
Income Taxes | ||
Operating loss carryforwards | 222,900 | 169,400 |
Valuation allowance relating to operating loss carryforwards | $ 122,500 | $ 4,800 |
Other Expense (Details)
Other Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Expense | |||
Business development and staff related | $ 14,571 | $ 8,721 | $ 8,837 |
Bankcard expense | 3,459 | 2,224 | 2,331 |
Other loan expense | 7,562 | 5,105 | 2,087 |
Director and shareholder expense | 5,486 | 4,175 | 1,859 |
Armored carrier and courier expense | 3,081 | 2,449 | 1,874 |
Property and sales tax | 3,487 | 3,936 | 2,131 |
Bank service charge expense | 2,037 | 1,725 | 776 |
Fraud and operational charge-off expense | 4,727 | 2,231 | 1,179 |
Low income housing tax credit partnership amortization | 9,986 | 12,977 | 6,141 |
Donation | 2,563 | 2,121 | 999 |
Other | 10,392 | 7,181 | 3,279 |
Total other noninterest expense | $ 67,351 | $ 52,845 | $ 31,493 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic earnings per common share: | |||
Net income | $ 475,543 | $ 120,632 | $ 186,483 |
Weighted-average basic common shares | 70,393 | 54,756 | 34,561 |
Basic earnings per common share (in dollars per share) | $ 6.76 | $ 2.20 | $ 5.40 |
Diluted earnings per common share: | |||
Net income | $ 475,543 | $ 120,632 | $ 186,483 |
Weighted-average basic common shares | 70,393 | 54,756 | 34,561 |
Effect of dilutive securities (in shares) | 496 | 307 | 236 |
Weighted-average dilutive shares | 70,889 | 55,063 | 34,797 |
Diluted earnings per common share (in dollars per share) | $ 6.71 | $ 2.19 | $ 5.36 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share | |||
Number of shares | 57,169 | 136,844 | 62,235 |
Range of exercise prices, low end of range (in dollars per share) | $ 87.30 | $ 61.42 | $ 87.30 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of the period | $ 47,589 | ||
Net comprehensive (loss) income | (68,735) | $ 46,572 | $ 25,898 |
Balance at the end of the period | (21,146) | 47,589 | |
Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of the period | (151) | (149) | (6,450) |
Other comprehensive (loss) income before reclassifications | 75 | (119) | 20 |
Amounts reclassified from accumulated other comprehensive (loss) income | 133 | 117 | 6,281 |
Net comprehensive (loss) income | 208 | (2) | 6,301 |
Balance at the end of the period | 57 | (151) | (149) |
Unrealized Gains and (Losses) on Securities Available for Sale | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of the period | 47,740 | 11,922 | (18,394) |
Other comprehensive (loss) income before reclassifications | (68,865) | 35,857 | 28,245 |
Amounts reclassified from accumulated other comprehensive (loss) income | (78) | (39) | 2,071 |
Net comprehensive (loss) income | (68,943) | 35,818 | 30,316 |
Balance at the end of the period | (21,203) | 47,740 | 11,922 |
Gains and (Losses) on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of the period | (10,756) | (37) | |
Other comprehensive (loss) income before reclassifications | (26,140) | (10,447) | |
Amounts reclassified from accumulated other comprehensive (loss) income | 36,896 | (272) | |
Net comprehensive (loss) income | 10,756 | (10,719) | |
Balance at the end of the period | (10,756) | ||
Accumulated Other Comprehensive (Loss) Gain | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of the period | 47,589 | 1,017 | (24,881) |
Other comprehensive (loss) income before reclassifications | (68,790) | 9,598 | 17,818 |
Amounts reclassified from accumulated other comprehensive (loss) income | 55 | 36,974 | 8,080 |
Net comprehensive (loss) income | (68,735) | 46,572 | 25,898 |
Balance at the end of the period | $ (21,146) | $ 47,589 | $ 1,017 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassifications out of accumulated other comprehensive income, net of tax | |||
Interest expense | $ (51,629) | $ (83,564) | $ (86,552) |
Provision for income taxes | (128,736) | 16,660 | (43,942) |
Net income | 475,543 | 120,632 | 186,483 |
Amount Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassifications out of accumulated other comprehensive income, net of tax | |||
Net income | 55 | 36,974 | 8,080 |
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 | 47,303 | (349) | |
Provision for income taxes | (10,407) | 77 | |
Net income | 36,896 | (272) | |
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 | (102) | (50) | 2,655 |
Provision for income taxes | 24 | 11 | (584) |
Net income | (78) | (39) | 2,071 |
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 | 174 | 152 | 8,053 |
Provision for income taxes | (41) | (35) | (1,772) |
Net income | $ 133 | $ 117 | $ 6,281 |
Restrictions on Subsidiary Di_2
Restrictions on Subsidiary Dividends, Loans, or Advances (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cost of shares repurchased | $ 1,053 | $ 7,716 | $ 2,486 | |
Special dividend for general operating liquidity | 32,600 | |||
Maximum amount available for transfer in the form of loans or advances | 503,200 | $ 479,500 | ||
Covid 19 | ||||
Special dividend for general operating liquidity | $ 33,000 | |||
Announced stock repurchase program | ||||
Amount available for special dividend distribution without approval from SCBFI | 24,700 | 200,000 | ||
Cost of shares repurchased | $ 24,700 | 146,400 | ||
Special dividend for general operating liquidity | 135,200 | |||
Repayment of trust preferred and subordinated debt | $ 74,500 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2020 | |
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 | $ 0 | ||
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, 2021 | Dec. 31, 2019 | |
Change in benefit obligation: | ||
Benefit obligation at beginning of year | $ 0 | |
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 | |
Service cost | 121 | |
Interest cost | 1,158 | |
Actuarial (gain) loss | 2,471 | |
Expenses | 318 | |
Plan termination settlements | (31,800) | |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 30,545 | |
Actual return on plan assets | 2,111 | |
Benefits paid | (538) | |
Expenses | 318 | |
Plan termination settlements | $ (31,800) |
Retirement Plans - Components O
Retirement Plans - Components Of Net Periodic Pension Cost (Details) - Other Comprehensive Income $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |
Interest cost | $ 1,157 |
Service cost | 121 |
Expected return on plan assets | (2,361) |
Recognized net actuarial loss | 483 |
Net periodic pension expense | (600) |
Plan termination settlements | 10,126 |
Net periodic pension cost with settlement | 9,526 |
Net (gain) loss | 2,722 |
Amortization of gain (loss) | (483) |
Plan termination settlement adjustment | (10,126) |
Total amount recognized in other comprehensive income | (7,887) |
Total recognized in net periodic benefit cost and other comprehensive income | $ 1,639 |
Retirement Plans - Measurement
Retirement Plans - Measurement Date (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted-average assumptions used to determine net periodic pension cost | ||||
Discount rate (as a percent) | 4.10% | |||
Defined Benefit Plan, Benefit Obligation | $ 0 | $ 0 | ||
Non-contributory defined benefit pension plan | ||||
Weighted-average assumptions used to determine net periodic pension cost | ||||
Discount rate (as a percent) | 4.10% | |||
Expected long-term return on plan assets (as a percent) | 7.75% | |||
Defined Benefit Plan, Benefit Obligation | $ 28,906 | |||
Number of shares repurchased | 0 | 0 | 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, 2021 | |
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% | |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan termination expense | $ 9,526 | ||
Employee savings plan/ 401(k) | $ 14,991 | $ 10,962 | 6,659 |
Supplemental executive retirement plan | 3,475 | 2,862 | 2,343 |
Post-retirement benefits | 67 | 43 | 144 |
Non-contributory defined benefit pension plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses incurred and charged against operations | $ 18,533 | $ 13,867 | $ 18,672 |
Retirement Plans - Safe Harbor
Retirement Plans - Safe Harbor plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employees' savings plan | ||||
Matching contribution by the company (as a percent) | 100.00% | |||
Expenses recognized under 401(K) plan | $ 14,991 | $ 10,962 | $ 6,659 | |
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, 2021USD ($)item | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Post-Retirement Benefits | |||
Number of post-retirement health and life insurance benefit plans | item | 2 | ||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 0 | ||
Benefit obligation at end of year | 0 | $ 0 | |
Weighted-average assumptions used to determine net periodic pension cost | |||
Discount rate (as a percent) | 4.10% | ||
Other Comprehensive Income | |||
Change in benefit obligation: | |||
Interest cost | $ 1,157,000 | ||
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Interest cost | 1,157,000 | ||
Recognized net actuarial loss | 483,000 | ||
Net periodic pension expense | (600,000) | ||
Net loss | 2,722,000 | ||
Amortization of gain (loss) | (483,000) | ||
Total amount recognized in other comprehensive income | (7,887,000) | ||
Total recognized in net periodic benefit cost and other comprehensive income | 1,639,000 | ||
SCBT Post-retirement Benefit Plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 209,000 | 254,000 | 309,000 |
Interest cost | 3,000 | 6,000 | 11,000 |
Actuarial (gain) loss | 11,000 | (19,000) | (33,000) |
Benefits paid | (28,000) | (32,000) | (33,000) |
Benefit obligation at end of year | 195,000 | 209,000 | 254,000 |
Change in plan assets: | |||
Employer contribution | 28,000 | 32,000 | 33,000 |
Benefits paid | (28,000) | (32,000) | (33,000) |
Funded (unfunded) status | $ (195,000) | $ (209,000) | $ (254,000) |
Weighted-average assumptions used to determine the benefit obligation | |||
Discount rate (as a percent) | 2.10% | 1.60% | 2.70% |
Weighted-average assumptions used to determine net periodic pension cost | |||
Discount rate (as a percent) | 1.60% | 2.70% | 3.80% |
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 | $ 3,000 | $ 6,000 | $ 11,000 |
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 | 1,000 | ||
Estimated future benefit payments (including expected future service as appropriate) | |||
2022 | 27,000 | ||
2023 | 25,000 | ||
2024 | 23,000 | ||
2025 | 22,000 | ||
2026 | 20,000 | ||
2027-2031 | 67,000 | ||
Estimated future benefit payments | 184,000 | ||
Expected contributions in the next fiscal year | |||
Amount of expected contributions in the next fiscal year | 27,000 | ||
SCBT Post-retirement Benefit Plan | Other Comprehensive Income | |||
Change in benefit obligation: | |||
Interest cost | 3,000 | 6,000 | 11,000 |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Interest cost | 3,000 | 6,000 | 11,000 |
Recognized net actuarial loss | 2,000 | 6,000 | |
Net periodic pension expense | 3,000 | 8,000 | 17,000 |
Net loss | 11,000 | (19,000) | (33,000) |
Amortization of gain (loss) | (2,000) | (6,000) | |
Total amount recognized in other comprehensive income | 11,000 | (21,000) | (39,000) |
Total recognized in net periodic benefit cost and other comprehensive income | 14,000 | (13,000) | (22,000) |
FFCH Post-retirement Benefit Plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 2,070,000 | 2,109,000 | 2,281,000 |
Interest cost | 31,000 | 54,000 | 82,000 |
Actuarial (gain) loss | (110,000) | 180,000 | 7,000 |
Benefits paid | (246,000) | (285,000) | (273,000) |
less: federal subsidy on benefits paid | 9,000 | 12,000 | 12,000 |
Benefit obligation at end of year | 1,754,000 | 2,070,000 | 2,109,000 |
Change in plan assets: | |||
Employer contribution | 236,000 | 273,000 | 261,000 |
Participants' contributions | 10,000 | 12,000 | 12,000 |
Benefits paid | (246,000) | (285,000) | (273,000) |
Funded (unfunded) status | $ (1,754,000) | $ (2,070,000) | $ (2,109,000) |
Weighted-average assumptions used to determine the benefit obligation | |||
Discount rate (as a percent) | 2.10% | 1.60% | 2.70% |
Weighted-average assumptions used to determine net periodic pension cost | |||
Discount rate (as a percent) | 1.60% | 2.70% | 3.80% |
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 | $ 31,000 | $ 54,000 | $ 82,000 |
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 | 141,000 | ||
Estimated future benefit payments (including expected future service as appropriate) | |||
2022 | 216,000 | ||
2023 | 203,000 | ||
2024 | 189,000 | ||
2025 | 174,000 | ||
2026 | 159,000 | ||
2027-2031 | 583,000 | ||
Estimated future benefit payments | 1,524,000 | ||
Expected contributions in the next fiscal year | |||
Amount of expected contributions in the next fiscal year | 216,000 | ||
FFCH Post-retirement Benefit Plan | Other Comprehensive Income | |||
Change in benefit obligation: | |||
Interest cost | 31,000 | 54,000 | 82,000 |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Interest cost | 31,000 | 54,000 | 82,000 |
Recognized net actuarial loss | 174,000 | 151,000 | 160,000 |
Net periodic pension expense | 205,000 | 205,000 | 242,000 |
Net loss | (110,000) | 180,000 | 7,000 |
Amortization of gain (loss) | 174,000 | 151,000 | 160,000 |
Total amount recognized in other comprehensive income | (284,000) | 29,000 | (153,000) |
Total recognized in net periodic benefit cost and other comprehensive income | $ (79,000) | $ 234,000 | $ 89,000 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options (Details) - USD ($) | 12 Months Ended | 192 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | |
2004 plan | ||||
Additional disclosures | ||||
Granted (in shares) | 0 | |||
2020 plan | ||||
Share-Based Compensation | ||||
Number of shares registered | 2,072,245 | |||
Stock Options | ||||
Number of shares | ||||
Outstanding at the beginning of the period (in shares) | 256,425 | 176,888 | 213,866 | |
Assumed stock options and warrants from CSFL merger (in shares) | 136,831 | |||
Exercised (in shares) | (64,075) | (52,331) | (36,978) | |
Forfeited (in shares) | (6,250) | (4,963) | ||
Expired (in shares) | (975) | |||
Outstanding at the end of the period (in shares) | 185,125 | 256,425 | 176,888 | 176,888 |
Exercisable at the end of the period (in shares) | 185,125 | 256,425 | 131,216 | 131,216 |
Weighted-Average Exercise Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 59.01 | $ 67.14 | $ 61.28 | |
Assumed stock options and warrants from CSFL merger (in dollars per share) | 37.85 | |||
Exercised (in dollars per share) | 45.35 | 32.12 | 33.26 | |
Expired (in dollars per share) | (24.37) | |||
Forfeited (in dollars per share) | 85.42 | 48.89 | ||
Outstanding at the end of the period (in dollars per share) | 63.03 | 59.01 | 67.14 | $ 67.14 |
Exercisable at the end of the period (in dollars per share) | $ 63.03 | $ 59.01 | 60.12 | $ 60.12 |
Weighted-Average Remaining Contractual Life | ||||
Weighted-average fair value of options granted during the year (in dollars per share) | $ 28.01 | |||
Aggregate Intrinsic Value | ||||
Outstanding at the end of the period | $ 3,800,000 | $ 4,600,000 | $ 3,700,000 | $ 3,700,000 |
Exercisable at the end of the period | 3,800,000 | 4,600,000 | 3,600,000 | 3,600,000 |
Additional disclosures | ||||
Total unrecognized compensation cost related to non vested stock option grants | 0 | 0 | 720,000 | $ 720,000 |
Intrinsic value of stock option shares exercised | $ 2,300,000 | $ 2,000,000 | $ 1,400,000 | |
Incentive stock options | Maximum | ||||
Share-Based Compensation | ||||
Vesting period | 4 years | |||
Incentive stock options | Plan 2004 and 2012 | ||||
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation | |||
Range of exercise prices, low end of range (in dollars per share) | $ 87.30 | $ 61.42 | $ 87.30 |
Range of exercise prices, high end of range (in dollars per share) | $ 91.35 | $ 91.35 | $ 91.35 |
Options Outstanding | |||
Number outstanding (in shares) | 185,125 | ||
Weighted Average Remaining Contractual Life | 4 years | ||
Weighted Average Exercise Price (in dollars per share) | $ 63.03 | ||
Options Exercisable | |||
Number outstanding (in shares) | 185,125 | ||
Weighted Average Exercise Price (in dollars per share) | $ 63.03 | ||
Weighted Average Remaining Contractual Life | 4 years | ||
Restricted Stock | |||
Vesting schedule of shares | |||
2022 | 750 | ||
2023 | 750 | ||
2024 | 1,566 | ||
Total | 3,066 | 11,004 | |
21.66 To 40.00 | |||
Share Based Compensation | |||
Range of exercise prices, low end of range (in dollars per share) | $ 21.66 | ||
Range of exercise prices, high end of range (in dollars per share) | $ 40 | ||
Options Outstanding | |||
Number outstanding (in shares) | 19,345 | ||
Weighted Average Remaining Contractual Life | 1 year 8 months 12 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 32.23 | ||
Options Exercisable | |||
Number outstanding (in shares) | 19,345 | ||
Weighted Average Exercise Price (in dollars per share) | $ 32.23 | ||
Weighted Average Remaining Contractual Life | 1 year 8 months 12 days | ||
40.01 To 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) | 56,754 | ||
Weighted Average Remaining Contractual Life | 4 years 2 months 12 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 44.70 | ||
Options Exercisable | |||
Number outstanding (in shares) | 56,754 | ||
Weighted Average Exercise Price (in dollars per share) | $ 44.70 | ||
Weighted Average Remaining Contractual Life | 4 years 2 months 12 days | ||
55.01 To 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) | 51,857 | ||
Weighted Average Remaining Contractual Life | 3 years 1 month 6 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 63.62 | ||
Options Exercisable | |||
Number outstanding (in shares) | 51,857 | ||
Weighted Average Exercise Price (in dollars per share) | $ 63.62 | ||
Weighted Average Remaining Contractual Life | 3 years 1 month 6 days | ||
70.01 To 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 | ||
Options Exercisable | |||
Weighted Average Exercise Price (in dollars per share) | 0 | ||
85.01 To 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) | 57,169 | ||
Weighted Average Remaining Contractual Life | 5 years 7 months 6 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 91.12 | ||
Options Exercisable | |||
Number outstanding (in shares) | 57,169 | ||
Weighted Average Exercise Price (in dollars per share) | $ 91.12 | ||
Weighted Average Remaining Contractual Life | 5 years 7 months 6 days |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted average assumptions used in valuing options (Details) - USD ($) | Jun. 07, 2020 | Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2009 | Oct. 29, 2020 |
Employee Stock Purchase Plan | |||||||
Additional disclosures | |||||||
Compensation expense | $ 126,000 | $ 81,000 | $ 75,000 | ||||
Employee Stock Purchase Plan | |||||||
Number of shares of common stock registered in connection with the establishment of an Employee Stock Purchase Plan | 363,825 | 1,400,000 | |||||
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 | ||||||
Employee stock purchases (in shares) | 33,013 | 32,476 | 21,100 | ||||
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 | 1,400,000 | ||||||
Maximum | Employee Stock Purchase Plan | |||||||
Employee Stock Purchase Plan | |||||||
Estimated subscription date fair value (as a percent) | 95.00% | ||||||
Stock Options | |||||||
Additional disclosures | |||||||
Total unrecognized compensation cost related to non vested stock option grants | $ 0 | $ 0 | $ 720,000 | ||||
Total fair value of shares vested during the period | 0 | 1,400,000 | 799,000 | ||||
Compensation expense | $ 0 | $ 720,000 | 641,000 | ||||
Restricted Stock Activity | |||||||
Assumed restricted stock shares from CSFL merger (in shares) | 136,831 | ||||||
Weighted-Average Grant-Date Fair Value | |||||||
Assumed restricted stock shares from CSFL merger (in dollars per share) | $ 37.85 | ||||||
Stock Options | CSFL | |||||||
Additional disclosures | |||||||
Vesting of stock options | $ 481,000 | $ 704,000 | |||||
Restricted Stock | |||||||
Share-Based Compensation | |||||||
Options vested (in shares) | 25,937 | ||||||
Additional disclosures | |||||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 7 months 24 days | ||||||
Compensation expense | $ 370,000 | $ 1,500,000 | $ 1,700,000 | ||||
Options vested (in shares) | 25,937 | ||||||
Restricted Stock Activity | |||||||
Outstanding at the beginning of the period (in shares) | 11,004 | ||||||
Granted (in shares) | 0 | 9,145 | 8,934 | ||||
Vested (in shares) | (7,938) | ||||||
Outstanding at the end of the period (in shares) | 3,066 | 11,004 | |||||
Weighted-Average Grant-Date Fair Value | |||||||
Outstanding at the beginning of the period (in dollars per share) | $ 59.42 | ||||||
Granted (in dollars per share) | 0 | $ 55.96 | $ 73.34 | ||||
Vested (in dollars per share) | 56.43 | ||||||
Outstanding at the end of the period (in dollars per share) | $ 67.31 | $ 59.42 | |||||
Additional disclosures | |||||||
Total unrecognized compensation cost related to nonvested restricted stock and RSUs granted | $ 166,000 | ||||||
Total fair value of shares vested during the period | 448,000 | $ 4,600,000 | $ 3,000,000 | ||||
Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 448,000 | 4,600,000 | 3,000,000 | ||||
Restricted Stock | Maximum | |||||||
Additional disclosures | |||||||
Vesting period | 12 months | ||||||
Restricted Stock | Employees | Minimum | |||||||
Additional disclosures | |||||||
Vesting period | 4 years | ||||||
Restricted Stock | CSFL | |||||||
Restricted Stock Activity | |||||||
Vested (in shares) | (29,303) | ||||||
Restricted Stock Units | |||||||
Additional disclosures | |||||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 8 months 12 days | ||||||
Compensation expense | $ 25,200,000 | $ 21,000,000 | $ 6,400,000 | ||||
Restricted Stock Activity | |||||||
Outstanding at the beginning of the period (in shares) | 750,821 | ||||||
Granted (in shares) | 301,230 | 382,205 | 159,521 | ||||
Vested (in shares) | (93,081) | ||||||
Forfeited (in shares) | (10,757) | ||||||
Outstanding at the end of the period (in shares) | 948,213 | 750,821 | |||||
Weighted-Average Grant-Date Fair Value | |||||||
Outstanding at the beginning of the period (in dollars per share) | $ 60.88 | ||||||
Granted (in dollars per share) | 81.14 | ||||||
Vested (in dollars per share) | 64.66 | ||||||
Forfeited (in dollars per share) | 64.20 | ||||||
Outstanding at the end of the period (in dollars per share) | $ 67.01 | $ 60.88 | |||||
Additional disclosures | |||||||
Total unrecognized compensation cost related to nonvested restricted stock and RSUs granted | $ 26,200,000 | ||||||
Total fair value of shares vested during the period | $ 6,000,000 | $ 23,600,000 | $ 5,800,000 | ||||
Target RSU award level (as a percent) | 1.00% | ||||||
Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 6,000,000 | $ 23,600,000 | $ 5,800,000 | ||||
Restricted Stock Units | CSFL | |||||||
Additional disclosures | |||||||
Vesting of stock options | $ 7,500,000 | ||||||
Restricted Stock Activity | |||||||
Vested (in shares) | (242,018) | ||||||
Performance based restricted stock units | |||||||
Additional disclosures | |||||||
Performance period | 3 years | ||||||
Other Performance based restricted stock units | Minimum | |||||||
Additional disclosures | |||||||
Performance period | 1 year | ||||||
Other Performance based restricted stock units | Maximum | |||||||
Additional disclosures | |||||||
Performance period | 2 years | ||||||
Timed based restricted stock units | Minimum | |||||||
Additional disclosures | |||||||
Performance period | 2 years | ||||||
Timed based restricted stock units | Maximum | |||||||
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 31, 2021 | Jun. 30, 2019 | Jan. 31, 2019 | |
Stock repurchase program | |||||||
Stock Repurchased During Period, Value | $ 1,053 | $ 7,716 | $ 2,486 | ||||
CSFL | |||||||
Stock repurchase program | |||||||
Stock Repurchased During Period, Shares | 86,263 | ||||||
Stock Repurchased During Period, Value | $ 5,200 | ||||||
Announced stock repurchase program | |||||||
Stock repurchase program | |||||||
Stock Repurchased During Period, Value | $ 24,700 | $ 146,400 | |||||
Other stock repurchase arrangements | |||||||
Stock repurchase program | |||||||
Stock Repurchased During Period, Shares | 13,412 | 122,708 | 35,674 | ||||
Stock Repurchased During Period, Value | $ 1,100 | $ 7,700 | $ 2,500 | ||||
2019 Stock Repurchase Program | |||||||
Stock repurchase program | |||||||
Shares authorized under repurchase program | 2,000,000 | 1,000,000 | |||||
Stock Repurchased During Period, Shares | 320,000 | ||||||
Average price per share | $ 77.23 | ||||||
Stock Repurchased During Period, Value | $ 24,700 | ||||||
2021 Stock Repurchase Plan | |||||||
Stock repurchase program | |||||||
Shares authorized under repurchase program | 1,682,059 | 3,500,000 | |||||
Stock Repurchased During Period, Shares | 1,817,941 | ||||||
Average price per share | $ 80.51 |
Lease Commitments (Details)
Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2019 | |
Right to use asset | $ 110,300 | $ 113,400 | |
Lease Liability | $ 115,914 | $ 118,300 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities. | Other Liabilities. | |
Existence of option to extend | true | ||
Renewal term | 23 years | ||
ASU 2016- 02 | Adjustment for ASU | |||
Right to use asset | $ 82,200 | ||
Lease Liability | $ 82,200 |
Lease Commitments - Lease cost
Lease Commitments - Lease cost and other information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Cost Components: | |||
Amortization of ROU assets - finance leases | $ 466 | $ 289 | |
Interest on lease liabilities - finance leases | 56 | 44 | |
Operating lease cost (cost resulting from lease payments) | 17,236 | 14,266 | $ 8,804 |
Short-term lease expense | 446 | 404 | 494 |
Variable lease cost (cost excluded from lease payments) | 2,768 | 1,081 | 430 |
Total lease cost | 20,972 | 16,084 | 9,728 |
Supplemental Cash Flow and Other Information Related to Leases: | |||
Finance lease - operating cash flows | 56 | 42 | |
Finance lease - financing cash flows | 427 | 255 | |
Operating lease - operating cash flows (fixed payments) | 16,435 | 12,876 | 7,725 |
Operating lease - operating cash flows (net change asset/liability) | (12,790) | (9,123) | 1,457 |
New ROU assets - operating leases | $ 9,623 | 43,583 | $ 10,239 |
New ROU assets - finance leases | $ 5,374 | ||
Weighted - average remaining lease term (years) - finance leases | 6 years 4 months 28 days | 7 years 4 months 24 days | |
Weighted - average remaining lease term (years) - Operating leases | 10 years 11 months 12 days | 11 years 6 months 3 days | 14 years 1 month 20 days |
Weighted - average discount rate - finance leases | 1.70% | 1.70% | |
Weighted - average discount rate - Operating leases | 3.20% | 3.30% | 3.90% |
Maturity Analysis of Lease Liabilities: | |||
2022 | $ 15,215 | ||
2023 | 14,510 | ||
2024 | 13,340 | ||
2025 | 11,932 | ||
2025 | 11,468 | ||
Thereafter | 73,647 | ||
Total undiscounted cash flows | 140,112 | ||
Discount on cash flows | (24,198) | ||
Total operating lease liabilities | $ 115,914 | $ 118,300 |
Lease Commitments - Leases not
Lease Commitments - Leases not yet commenced (Details) $ in Millions | Dec. 31, 2021USD ($) |
Additional operating leases that not yet commenced | $ 22,000 |
Maximum | |
Lease term | 13 months |
Contingent Liabilities (Details
Contingent Liabilities (Details) | Dec. 31, 2021item |
Contingent Liabilities | |
Number of pending or threatened litigation | 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - SCBT - Directors and executive officers, their immediate families and their business interests - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions | ||
Loans outstanding | $ 10.1 | $ 28.7 |
Additional loans made | 102.2 | 12.4 |
Repayments received | 120.8 | 17.7 |
Related party deposits | $ 21.4 | 18.8 |
CSFL | ||
Related Party Transactions | ||
Additional loans made | 31.8 | |
Loans reduced | $ 35.3 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | |
Financial instruments, whose contract amounts represent credit risk | |||
Liability recorded for expected credit losses on unfunded commitments | $ 6,400 | ||
Other Liabilities | |||
Financial instruments, whose contract amounts represent credit risk | |||
Liability recorded for expected credit losses on unfunded commitments | $ 30,500 | $ 43,400 | |
Standby letters of credit | |||
Financial instruments, whose contract amounts represent credit risk | |||
Expiration period of standby letters of credit | 1 year | ||
SCBT | |||
Financial instruments, whose contract amounts represent credit risk | |||
Off balance sheet financial instruments | $ 7,488,135 | 6,006,352 | |
SCBT | Commitments to extend credit | |||
Financial instruments, whose contract amounts represent credit risk | |||
Off balance sheet financial instruments | 7,416,311 | 5,929,845 | |
SCBT | Standby letters of credit and financial guarantees | |||
Financial instruments, whose contract amounts represent credit risk | |||
Off balance sheet financial instruments | $ 71,824 | $ 76,507 |
Fair Value - Loans (Details)
Fair Value - Loans (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value. | |
Percentage of individually evaluated loans | 55.00% |
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, 2021 | Dec. 31, 2020 | |
Assets | ||
Derivative financial instruments | $ 408,800 | $ 802,800 |
Trading securities | 77,689 | 10,674 |
Securities available for sale | 5,193,478 | 3,330,672 |
Liabilities | ||
Derivative financial instruments | 408,800 | 802,700 |
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 |
Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Assets | ||
Trading securities | 6,853 | |
Securities available for sale | 1,831,039 | 1,367,132 |
Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Assets | ||
Trading securities | 29,667 | |
Securities available for sale | 1,207,241 | 240,108 |
State and municipal obligations | ||
Assets | ||
Trading securities | 20,798 | 10,674 |
Securities available for sale | 812,689 | 520,039 |
Corporate securities. | ||
Assets | ||
Securities available for sale | 18,734 | 13,702 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Loans held for sale | 191,723 | 290,467 |
Trading securities | 77,689 | 10,674 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Mortgage servicing rights | 65,620 | 43,820 |
Changes in fair value of assets | ||
Changes in hierarchy classifications of Level 3 assets | 0 | |
Changes in hierarchy classifications of Level 3 liabilities | 0 | |
Recurring basis | ||
Assets | ||
Derivative financial instruments | 414,742 | 813,899 |
Loans held for sale | 191,723 | 290,467 |
Trading securities | 77,689 | 10,674 |
Securities available for sale | 5,193,478 | 3,330,672 |
Mortgage servicing rights | 65,620 | 43,820 |
Fair value of Assets, Total | 5,943,252 | 4,489,532 |
Liabilities | ||
Derivative financial instruments | 410,137 | 804,832 |
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 | 97,117 | 29,256 |
Recurring basis | Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Assets | ||
Securities available for sale | 1,831,039 | 1,367,132 |
Recurring basis | Residential Collateralized Mortgage-Obligations Issued By U.S. Government Agencies Or Sponsored Enterprises [Member] | ||
Assets | ||
Securities available for sale | 725,995 | 755,551 |
Recurring basis | Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Assets | ||
Securities available for sale | 1,207,241 | 240,108 |
Recurring basis | State and municipal obligations | ||
Assets | ||
Securities available for sale | 812,689 | 520,039 |
Recurring basis | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 500,663 | 404,884 |
Recurring basis | Corporate securities. | ||
Assets | ||
Securities available for sale | 18,734 | 13,702 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative financial instruments | 414,742 | 813,899 |
Loans held for sale | 191,723 | 290,467 |
Trading securities | 77,689 | 10,674 |
Securities available for sale | 5,193,478 | 3,330,672 |
Fair value of Assets, Total | 5,877,632 | 4,445,712 |
Liabilities | ||
Derivative financial instruments | 410,137 | 804,832 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Government-sponsored entities debt | ||
Assets | ||
Securities available for sale | 97,117 | 29,256 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Assets | ||
Securities available for sale | 1,831,039 | 1,367,132 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential Collateralized Mortgage-Obligations Issued By U.S. Government Agencies Or Sponsored Enterprises [Member] | ||
Assets | ||
Securities available for sale | 725,995 | 755,551 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial mortgage-backed securities issued by U.S. government agencies or sponsored enterprises | ||
Assets | ||
Securities available for sale | 1,207,241 | 240,108 |
Recurring basis | Significant Other Observable Inputs (Level 2) | State and municipal obligations | ||
Assets | ||
Securities available for sale | 812,689 | 520,039 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 500,663 | 404,884 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate securities. | ||
Assets | ||
Securities available for sale | 18,734 | 13,702 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Mortgage servicing rights | 65,620 | 43,820 |
Fair value of Assets, Total | 65,620 | 43,820 |
Changes in fair value of assets | ||
Fair value of assets at the beginning of the period | 43,820 | 30,525 |
Servicing assets that resulted from transfers of financial assets | 26,733 | 28,456 |
Changes in fair value assets due to valuation inputs or assumptions | 4,932 | (6,991) |
Changes in fair value due to decay | 9,865 | 8,170 |
Fair value of assets at the end of the period | 65,620 | 43,820 |
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) $ in Thousands | Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($)item |
Fair Value | ||
OREO | $ 2,736 | $ 11,914 |
Impaired loans | 75,418 | 95,188 |
Nonrecurring basis | OREO | Fair Value | ||
Fair Value | ||
OREO | 2,736 | 11,914 |
Nonrecurring basis | Bank property held for sale | Fair Value | ||
Fair Value | ||
Bank property held for sale | 9,578 | 36,006 |
Nonrecurring basis | Non-acquired impaired loans | Fair Value | ||
Fair Value | ||
Impaired loans | $ 20,802 | $ 17,609 |
Nonrecurring basis | 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 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Impaired loans | Weighted average | ||
Quantitative Information about Level 3 Fair Value Measurements | ||
Discount rate (as a percent) | item | 0.09 | 0.05 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | OREO | ||
Fair Value | ||
OREO | $ 2,736 | $ 11,914 |
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:MeasurementInputDiscountRateMember | us-gaap:MeasurementInputCostToSellMember, us-gaap:MeasurementInputDiscountRateMember |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | OREO | Weighted average | ||
Quantitative Information about Level 3 Fair Value Measurements | ||
Discount rate (as a percent) | item | 0.24 | 0.14 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Bank property held for sale | ||
Fair Value | ||
Bank property held for sale | $ 9,578 | $ 36,006 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Non-acquired impaired loans | ||
Fair Value | ||
Impaired loans | $ 20,802 | $ 17,609 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial assets: | |||
Trading securities | $ 77,689 | $ 10,674 | |
Financial liabilities: | |||
Other borrowings | 327,066 | ||
Other derivative financial instruments (mortgage banking related) | (394,695) | (113,788) | $ 26,064 |
Carrying Amount | |||
Financial assets: | |||
Cash and cash equivalents | 6,843,147 | 4,609,255 | |
Trading securities | 77,689 | 10,674 | |
Investment securities | 7,173,947 | 4,446,657 | |
Loans held for sale | 191,723 | 290,467 | |
Loans, net of allowance for credit losses | 23,626,359 | 24,206,825 | |
Accrued interest receivable | 90,069 | 107,601 | |
Mortgage servicing rights | 65,620 | 43,820 | |
Interest rate swap - non-designated hedge | 408,776 | 802,763 | |
Other derivative financial instruments (mortgage banking related) | 5,966 | 11,136 | |
Financial liabilities: | |||
Deposits | 35,054,829 | 30,693,882 | |
Federal funds purchased and securities sold under agreements to repurchase | 781,239 | 779,666 | |
Other borrowings | 327,066 | 390,179 | |
Accrued interest payable | 3,345 | 7,103 | |
Interest rate swap - non-designated hedge | 410,137 | 804,832 | |
Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 6,843,147 | 4,609,255 | |
Trading securities | 77,689 | 10,674 | |
Investment securities | 7,132,110 | 4,448,300 | |
Loans held for sale | 191,723 | 290,467 | |
Loans, net of allowance for credit losses | 23,921,372 | 24,757,859 | |
Accrued interest receivable | 90,069 | 107,601 | |
Mortgage servicing rights | 65,620 | 43,820 | |
Interest rate swap - non-designated hedge | 408,776 | 802,763 | |
Other derivative financial instruments (mortgage banking related) | 5,966 | 11,136 | |
Financial liabilities: | |||
Deposits | 35,050,516 | 30,719,416 | |
Federal funds purchased and securities sold under agreements to repurchase | 781,239 | 779,666 | |
Other borrowings | 334,640 | 386,126 | |
Accrued interest payable | 3,345 | 7,103 | |
Interest rate swap - non-designated hedge | 410,137 | 804,832 | |
Commitments to extend credit | Fair Value | |||
Financial liabilities: | |||
Commitments to extend credit | 93,501 | 136,726 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Financial assets: | |||
Cash and cash equivalents | 6,843,147 | 4,609,255 | |
Investment securities | 160,568 | 160,443 | |
Significant Other Observable Inputs (Level 2) | |||
Financial assets: | |||
Trading securities | 77,689 | 10,674 | |
Investment securities | 6,971,542 | 4,287,857 | |
Loans held for sale | 191,723 | 290,467 | |
Accrued interest receivable | 19,241 | 12,952 | |
Interest rate swap - non-designated hedge | 408,776 | 802,763 | |
Other derivative financial instruments (mortgage banking related) | 5,966 | 11,136 | |
Financial liabilities: | |||
Deposits | 35,050,516 | 30,719,416 | |
Federal funds purchased and securities sold under agreements to repurchase | 781,239 | 779,666 | |
Other borrowings | 334,640 | 386,126 | |
Accrued interest payable | 3,345 | 7,103 | |
Interest rate swap - non-designated hedge | 410,137 | 804,832 | |
Significant Other Observable Inputs (Level 2) | Commitments to extend credit | |||
Financial liabilities: | |||
Commitments to extend credit | 93,501 | 136,726 | |
Significant Unobservable Inputs (Level 3) | |||
Financial assets: | |||
Loans, net of allowance for credit losses | 23,921,372 | 24,757,859 | |
Accrued interest receivable | 70,828 | 94,649 | |
Mortgage servicing rights | $ 65,620 | $ 43,820 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Capital ratios | |||||
Capital conversion buffer common equity Tier 1 of risk-weighted assets (as a percent) | 2.50% | ||||
Risk-weighted assets ratio | 6 | ||||
Additional allowance for credit losses for loans | $ 301,807 | $ 457,309 | $ 54,400 | $ 56,927 | |
Deferred tax assets | 64,964 | 110,946 | |||
Additional reserve for unfunded commitments | 6,400 | ||||
Retained earnings | 997,657 | 657,451 | |||
Common equity Tier 1 to risk-weighted assets | |||||
Actual, Capital Amount | $ 3,201,644 | $ 3,010,174 | |||
Actual, Ratio (as a percent) | 11.75% | 11.77% | |||
Minimum capital required, Ratio (as a percent) | 4.50% | ||||
Required to be considered well capitalized, Capital Amount | $ 1,770,629 | $ 1,662,122 | |||
Required to be considered well capitalized, Ratio (as a percent) | 6.50% | 6.50% | |||
Tier I capital to risk-weighted assets | |||||
Actual, Capital Amount | $ 3,201,644 | $ 3,010,174 | |||
Actual, Ratio (as a percent) | 11.75 | 11.77 | |||
Minimum capital required, Ratio (as a percent) | 4 | ||||
Required to be considered well capitalized, Capital Amount | $ 2,179,236 | $ 2,045,688 | |||
Required to be considered well capitalized, Ratio (as a percent) | 8 | 8 | |||
Total capital to risk-weighted assets | |||||
Actual, Capital Amount | $ 3,692,674 | $ 3,642,039 | |||
Actual, Ratio (as a percent) | 13.56 | 14.24 | |||
Minimum capital required, Ratio (as a percent) | 8 | ||||
Required to be considered well capitalized, Capital Amount | $ 2,724,045 | $ 2,557,110 | |||
Required to be considered well capitalized, Ratio (as a percent) | 10 | 10 | |||
Tier I capital to average assets (leverage ratio) | |||||
Actual, Capital Amount | $ 3,201,644 | $ 3,010,174 | |||
Actual, Ratio (as a percent) | 8.05 | 8.27 | |||
Required to be considered well capitalized, Capital Amount | $ 1,987,556 | $ 1,818,924 | |||
Required to be considered well capitalized, Ratio (as a percent) | 5 | 5 | |||
Adjustments | |||||
Capital ratios | |||||
Additional allowance for credit losses for loans | $ 457,309 | 111,365 | |||
ASU 2016-13 | |||||
Capital ratios | |||||
Additional allowance for credit losses for loans | 54,438 | ||||
Deferred tax assets | 12,639 | ||||
Additional reserve for unfunded commitments | 6,400 | ||||
Retained earnings | $ 44,800 | (44,820) | |||
ASU 2016-13 | Adjustments | |||||
Capital ratios | |||||
Additional allowance for credit losses for loans | 109,442 | 56,927 | $ 51,030 | ||
Deferred tax assets | 31,316 | ||||
Retained earnings | $ 679,895 | ||||
SouthState Bank (the Bank) | |||||
Common equity Tier 1 to risk-weighted assets | |||||
Actual, Capital Amount | $ 3,431,069 | $ 3,157,098 | |||
Actual, Ratio (as a percent) | 12.62% | 12.39% | |||
Required to be considered well capitalized, Capital Amount | $ 1,767,029 | $ 1,656,677 | |||
Required to be considered well capitalized, Ratio (as a percent) | 6.50% | 6.50% | |||
Tier I capital to risk-weighted assets | |||||
Actual, Capital Amount | $ 3,431,069 | $ 3,157,098 | |||
Actual, Ratio (as a percent) | 12.62 | 12.39 | |||
Required to be considered well capitalized, Capital Amount | $ 2,174,804 | $ 2,038,987 | |||
Required to be considered well capitalized, Ratio (as a percent) | 8 | 8 | |||
Total capital to risk-weighted assets | |||||
Actual, Capital Amount | $ 3,594,099 | $ 3,397,463 | |||
Actual, Ratio (as a percent) | 13.22 | 13.33 | |||
Required to be considered well capitalized, Capital Amount | $ 2,718,505 | $ 2,548,733 | |||
Required to be considered well capitalized, Ratio (as a percent) | 10 | 10 | |||
Tier I capital to average assets (leverage ratio) | |||||
Actual, Capital Amount | $ 3,431,069 | $ 3,157,098 | |||
Actual, Ratio (as a percent) | 8.65 | 8.71 | |||
Required to be considered well capitalized, Capital Amount | $ 1,984,015 | $ 1,813,255 | |||
Required to be considered well capitalized, Ratio (as a percent) | 5 | 5 | |||
Fully Phased-In | |||||
Common equity Tier 1 to risk-weighted assets | |||||
Minimum capital required, Capital Amount | $ 1,906,831 | $ 1,789,977 | |||
Minimum capital required, Ratio (as a percent) | 7.00% | 7.00% | |||
Tier I capital to risk-weighted assets | |||||
Minimum capital required, Capital Amount | $ 2,315,438 | $ 2,173,544 | |||
Minimum capital required, Ratio (as a percent) | 8.50 | 8.50 | |||
Total capital to risk-weighted assets | |||||
Minimum capital required, Capital Amount | $ 2,860,247 | $ 2,684,966 | |||
Minimum capital required, Ratio (as a percent) | 10.50 | 10.50 | |||
Tier I capital to average assets (leverage ratio) | |||||
Minimum capital required, Capital Amount | $ 1,590,045 | $ 1,455,139 | |||
Minimum capital required, Ratio (as a percent) | 4 | 4 | |||
Fully Phased-In | SouthState Bank (the Bank) | |||||
Common equity Tier 1 to risk-weighted assets | |||||
Minimum capital required, Capital Amount | $ 1,902,954 | $ 1,784,113 | |||
Minimum capital required, Ratio (as a percent) | 7.00% | 7.00% | |||
Tier I capital to risk-weighted assets | |||||
Minimum capital required, Capital Amount | $ 2,310,730 | $ 2,166,423 | |||
Minimum capital required, Ratio (as a percent) | 8.50 | 8.50 | |||
Total capital to risk-weighted assets | |||||
Minimum capital required, Capital Amount | $ 2,854,431 | $ 2,676,170 | |||
Minimum capital required, Ratio (as a percent) | 10.50 | 10.50 | |||
Tier I capital to average assets (leverage ratio) | |||||
Minimum capital required, Capital Amount | $ 1,587,212 | $ 1,450,604 | |||
Minimum capital required, Ratio (as a percent) | 4 | 4 |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||||
Other Assets. | $ 438,827 | $ 344,269 | ||
Total assets | 41,960,032 | 37,789,873 | ||
Corporate and subordinated debentures | 327,066 | 390,179 | ||
Other Liabilities. | 553,311 | 430,054 | ||
Shareholders' equity | 4,802,940 | 4,647,880 | $ 2,373,013 | $ 2,366,296 |
Total liabilities and shareholders' equity | 41,960,032 | 37,789,873 | ||
Parent company | Reportable Legal Entities | ||||
Assets: | ||||
Cash | 81,051 | 131,522 | ||
Investment in subsidiaries | 5,039,776 | 4,802,993 | ||
Other Assets. | 10,556 | 108,086 | ||
Total assets | 5,131,383 | 5,042,601 | ||
Corporate and subordinated debentures | 327,066 | 390,179 | ||
Other Liabilities. | 1,377 | 4,542 | ||
Shareholders' equity | 4,802,940 | 4,647,880 | ||
Total liabilities and shareholders' equity | $ 5,131,383 | $ 5,042,601 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income: | |||
Income before provision for (benefit of) income taxes | $ 604,279 | $ 103,972 | $ 230,425 |
Applicable income tax benefit | (128,736) | 16,660 | (43,942) |
Net income | 475,543 | 120,632 | 186,483 |
Parent company | Reportable Legal Entities | |||
Income: | |||
Dividends from subsidiaries | 200,083 | 90,404 | 214,852 |
Operating income | 25 | 52 | 5,386 |
Total income | 200,108 | 90,456 | 220,238 |
Operating expenses | 40,727 | 45,574 | 15,409 |
Income before provision for (benefit of) income taxes | 159,381 | 44,882 | 204,829 |
Applicable income tax benefit | 9,053 | 8,960 | 1,883 |
Equity in undistributed earnings of subsidiaries (excess distribution) | 307,109 | 66,790 | (20,229) |
Net income | $ 475,543 | $ 120,632 | $ 186,483 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 475,543 | $ 120,632 | $ 186,483 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 63,137 | 46,367 | 33,121 |
Share-based compensation | 25,721 | 23,318 | 8,839 |
Extinguishment of debt cost | 11,706 | ||
Gain on sale of securities available for sale | (102) | (50) | (2,711) |
Decrease (increase) in other assets | (79,312) | 27,365 | (29,932) |
Decrease in other liabilities | 119,120 | 74,079 | 9,959 |
Net cash provided by operating activities | 537,265 | 536,943 | 181,028 |
Cash flows from investing activities: | |||
Net cash inflow from acquisitions | 2,566,376 | ||
Net cash inflow from acquisitions | 39,929 | ||
Net cash (used in) provided by investing activities | (2,319,261) | 1,229,778 | (795,053) |
Cash flows from financing activities: | |||
Repayment of other borrowings | (100,878) | (1,200,103) | (150,007) |
Common stock issuance | 2,384 | 1,537 | 1,394 |
Common stock repurchased | (147,421) | (32,431) | (159,431) |
Dividends paid | (135,337) | (98,256) | (57,696) |
Stock options exercised | 2,905 | 1,681 | 1,230 |
Net cash provided by financing activities | 4,015,888 | 2,153,830 | 893,746 |
Net increase in cash and cash equivalents | 2,233,892 | 3,920,551 | 279,721 |
Cash and cash equivalents at beginning of period | 4,609,255 | 688,704 | 408,983 |
Cash and cash equivalents at end of period | 6,843,147 | 4,609,255 | 688,704 |
Parent company | Reportable Legal Entities | |||
Cash flows from operating activities: | |||
Net income | 475,543 | 120,632 | 186,483 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,382 | 1,528 | 666 |
Share-based compensation | 25,721 | 23,316 | 8,839 |
Extinguishment of debt cost | 11,706 | ||
Gain on sale of securities available for sale | (5,366) | ||
Decrease (increase) in other assets | 5,690 | (11,710) | (159) |
Decrease in other liabilities | (3,648) | (12,323) | (959) |
Undistributed earnings of subsidiaries | (307,109) | (66,790) | 20,229 |
Net cash provided by operating activities | 209,285 | 54,653 | 209,733 |
Cash flows from investing activities: | |||
Proceeds from sales and calls of other investment securities | 5,366 | ||
Repayment of investments in and advances to subsidiaries | 93,591 | 163,000 | |
Net cash inflow from acquisitions | 19,650 | ||
Net cash (used in) provided by investing activities | 93,591 | 182,650 | 5,366 |
Cash flows from financing activities: | |||
Repayment of other borrowings | (75,878) | ||
Common stock issuance | 2,384 | 1,537 | 1,394 |
Common stock repurchased | (147,421) | (32,431) | (159,431) |
Dividends paid | (135,337) | (98,256) | (57,696) |
Stock options exercised | 2,905 | 1,681 | 1,230 |
Net cash provided by financing activities | (353,347) | (127,469) | (214,503) |
Net increase in cash and cash equivalents | (50,471) | 109,834 | 596 |
Cash and cash equivalents at beginning of period | 131,522 | 21,688 | 21,092 |
Cash and cash equivalents at end of period | $ 81,051 | $ 131,522 | $ 21,688 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Financial Instruments | |||
Notional Amount | $ 21,351,715,000 | $ 19,342,657,000 | |
Estimated Fair Value Gain | 414,742,000 | 813,899,000 | |
Estimated Fair Value Loss | 410,137,000 | 804,832,000 | |
Gains (losses) on cash flow hedge in other comprehensive income | 10,800,000 | ||
Cash flow hedge liability | 0 | ||
Cash flow hedge assets | 30,300,000 | ||
Ineffectiveness in the cash flow hedge | 0 | ||
Gain or loss recorded | 0 | 0 | |
Interest Rate Derivative Assets, at Fair Value | 408,800,000 | 802,800,000 | |
Interest Rate Derivative Liabilities, at Fair Value | 408,800,000 | 802,700,000 | |
Interest Rate Derivatives, at Fair Value, Net | 5,000 | 17,000,000,000 | |
Estimated gain (loss) on fair value | 1,200,000 | (119,000) | |
Termination value of obligations under agreement | 38,800,000 | ||
Interest expense | 51,629,000 | 83,564,000 | $ 86,552,000 |
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | |||
Fair value of forward commitments | (410,137,000) | (804,832,000) | |
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 | 264,000,000,000 | 510,730,000,000 | |
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 | 233,265,000,000 | 411,273,000,000 | |
Cash flow hedge | |||
Derivative Financial Instruments | |||
Collateral provided | 0 | 0 | |
Cash flow hedge | Borrower | |||
Derivative Financial Instruments | |||
Collateral provided | 347,600,000 | ||
Interest rate contracts | |||
Derivative Financial Instruments | |||
Notional Amount | 20,800,000,000 | 18,600,000,000 | |
Mortgage servicing rights hedging | Non-designated hedges | |||
Derivative Financial Instruments | |||
Notional Amount | 205,000,000 | 149,000,000 | |
Mortgage servicing rights hedging | Non-designated hedges | Other Assets and Other Liabilities | |||
Derivative Financial Instruments | |||
Notional Amount | 205,000,000 | 149,000,000 | |
Estimated Fair Value Gain | 1,228,000 | 119,000 | |
Mortgage loan pipeline commitments hedging | |||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | |||
Obligation | 4,759,000,000 | 15,328,000,000 | |
Mortgage loan pipeline commitments hedging | Non-designated hedges | Other Assets | |||
Derivative Financial Instruments | |||
Notional Amount | 324,000,000 | 528,500,000 | |
Estimated Fair Value Gain | 4,738,000 | 11,017,000 | |
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 | 324,000,000,000 | 528,500,000,000 | |
Fair value of forward commitments | (21,000,000) | (4,311,000,000) | |
Customer swaps | Cash flow hedge | Investment securities - available for sale | |||
Derivative Financial Instruments | |||
Collateral provided | 348,800,000 | ||
Interest rate swap | |||
Derivative Financial Instruments | |||
Termination cost | 40,800,000 | ||
Interest expense | 2,000,000 | ||
Interest rate swap | Fair Value Hedging | Counterparty | |||
Derivative Financial Instruments | |||
Notional Amount | 15,700,000 | 16,400,000 | |
Interest rate swap | Fair Value Hedging | Other Liabilities | Counterparty | |||
Derivative Financial Instruments | |||
Notional Amount | 15,716,000 | 16,439,000 | |
Estimated Fair Value Loss | 1,355,000 | 2,086,000 | |
Interest rate swap | Non-designated hedges | Other Assets and Other Liabilities | Borrower | |||
Derivative Financial Instruments | |||
Notional Amount | 10,404,605,000 | 9,324,359,000 | |
Estimated Fair Value Gain | 408,776,000 | 802,717,000 | |
Estimated Fair Value Loss | 69,998,000 | 46,000 | |
Interest rate swap | Non-designated hedges | Other Assets and Other Liabilities | Counterparty | |||
Derivative Financial Instruments | |||
Notional Amount | 10,402,394,000 | 9,324,359,000 | |
Estimated Fair Value Gain | 46,000 | ||
Estimated Fair Value Loss | 338,784,000 | 802,700,000 | |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loans held for sale, loan servicing and mortgage origination | |||
Mortgage servicing rights | $ 65,620 | $ 43,820 | |
Changes in the fair value of MSRs and its offsetting hedge. | |||
Increase (decrease) in fair value of MSRs | 9,930 | (7,421) | $ (6,976) |
Decay of MSRs | (14,863) | (8,793) | (4,589) |
Gain (loss) related to derivatives | (4,892) | 10,177 | 3,967 |
Net effect on statements of income | $ (9,825) | $ (6,037) | $ (7,598) |
Characteristics and sensitivity analysis of the MSR | |||
Composition of residential loans serviced for others | 100.00% | 100.00% | |
Weighted average life (in years) | 7 years 4 months 6 days | 6 years 1 month 6 days | |
Constant Prepayment rate (CPR) (as a percent) | 8.40% | 12.30% | |
Weighted average discount rate (as a percent) | 9.00% | 9.00% | |
Effect on fair value due to change in interest rates: | |||
25 basis point increase | $ 3,961 | $ 2,744 | |
50 basis point increase | 7,261 | 5,520 | |
25 basis point decrease | (4,371) | (2,497) | |
50 basis point decrease | (8,966) | (4,114) | |
MSRs | |||
Effect on fair value due to change in interest rates: | |||
Custodial escrow balances maintained in connection with the loan servicing | $ 29,600 | $ 26,600 | |
Fixed-rate mortgage loans | |||
Characteristics and sensitivity analysis of the MSR | |||
Composition of residential loans serviced for others | 99.90% | 99.90% | |
Adjustable-rate mortgage loans | |||
Characteristics and sensitivity analysis of the MSR | |||
Composition of residential loans serviced for others | 0.10% | 0.10% | |
First Financial Holdings, Inc. ("First Financial") | |||
Loans held for sale, loan servicing and mortgage origination | |||
Residential mortgages serviced for others | $ 6,100,000 | $ 5,100,000 | |
Contractually specified servicing fees earned | 14,100 | 9,800 | |
First Financial Holdings, Inc. ("First Financial") | MSRs | |||
Analysis of the activity in the MSRs | |||
Balance at beginning of the period | 43,800 | ||
Balance at end of period | $ 65,600 | $ 43,800 |
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, 2021 | Dec. 31, 2020 | |
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | ||
Loan sales | $ 3,100,000 | $ 3,200,000 |
Loan securitizations and loan sales | $ 2,400,000 | $ 2,700,000 |
Percentage of loan securitizations and loan sales | 76.80% | 85.10% |
Loans held for sale | $ 191,723 | $ 290,467 |
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, 2021 | Dec. 31, 2020 | |
Investments in Qualified Affordable Housing Projects | ||
Tax credits and other tax benefits | $ 13.7 | $ 11.2 |
Amortization | 9.9 | 12.9 |
Carrying value | 99.5 | 105.6 |
Original investment value | 140.8 | 137.1 |
Funding obligation | 15.6 | $ 42.7 |
Amount repaid | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Feb. 18, 2022 | Jan. 24, 2022 | Feb. 23, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 23, 2022 |
Subsequent events | |||||||
Cash dividends declared (in dollars per share) | $ 1.92 | $ 1.88 | $ 1.67 | ||||
Subsequent event | |||||||
Subsequent events | |||||||
Cash dividends declared (in dollars per share) | $ 0.49 | ||||||
Cash dividends paid (in dollars per share) | $ 0.49 | ||||||
Subsequent event | 2021 Stock Repurchase Plan. | |||||||
Subsequent events | |||||||
Number of shares repurchased | 582,239 | 2,400,180 | |||||
Average price per share | $ 85.55 | $ 81.73 | |||||
Additional shares available for repurchase | 1.1 | 1.1 |