Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document and Entity Information [Abstract] | ||
Entity registrant name | FIDELITY SOUTHERN CORP | |
Entity central index key | 822,662 | |
Current fiscal year end date | --12-31 | |
Entity filer category | Accelerated Filer | |
Document type | 10-Q | |
Document period end date | Mar. 31, 2018 | |
Document fiscal year focus | 2,018 | |
Document fiscal period focus | Q1 | |
Amendment flag | false | |
Entity common stock, shares outstanding (in shares) | 27,036,895 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 37,703 | $ 33,874 |
Interest-bearing deposits with banks | 114,397 | 104,032 |
Federal funds sold | 48,396 | 48,396 |
Cash and cash equivalents | 200,496 | 186,302 |
Investment securities available-for-sale | 124,576 | 120,121 |
Investment securities held-to-maturity (fair value of $20,947 and $21,685, respectively) | 21,342 | 21,689 |
Loans held-for-sale (includes loans at fair value of $355,515 and $269,140, respectively) | 425,300 | 357,755 |
Loans | 3,714,308 | 3,580,966 |
Allowance for loan losses | (30,940) | (29,772) |
Loans, net of allowance for loan losses | 3,683,368 | 3,551,194 |
Premises and equipment, net | 88,624 | 88,463 |
Other real estate, net | 7,668 | 7,621 |
Bank owned life insurance | 72,284 | 71,883 |
Servicing rights, net | 119,553 | 112,615 |
Other assets | 68,448 | 59,215 |
Total assets | 4,811,659 | 4,576,858 |
Deposits | ||
Noninterest-bearing demand deposits | 1,152,315 | 1,125,598 |
Interest-bearing deposits | 2,748,092 | 2,741,602 |
Total deposits | 3,900,407 | 3,867,200 |
Short-term borrowings | 337,795 | 150,580 |
Subordinated debt, net | 120,620 | 120,587 |
Other liabilities | 42,093 | 36,859 |
Total liabilities | 4,400,915 | 4,175,226 |
Shareholders’ equity | ||
Preferred stock, no par value. Authorized 10,000,000; zero issued and outstanding | 0 | 0 |
Common stock, no par value. Authorized 50,000,000; issued and outstanding 27,034,255 and 27,019,201, respectively | 219,234 | 217,555 |
Accumulated other comprehensive (loss)/income, net of tax | (631) | 383 |
Retained earnings | 192,141 | 183,694 |
Total shareholders’ equity | 410,744 | 401,632 |
Total liabilities and shareholders’ equity | $ 4,811,659 | $ 4,576,858 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Investment securities held-to-maturity, fair value | $ 20,947 | $ 21,685 |
Loans held-for-sale, fair value | $ 355,515 | $ 269,140 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 27,034,255 | 27,019,201 |
Common stock, shares outstanding (in shares) | 27,034,255 | 27,019,201 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest income: | ||
Loans, including fees | $ 39,849 | $ 36,083 |
Investment securities: | ||
Taxable interest income | 1,098 | 1,163 |
Nontaxable interest income | 77 | 45 |
Other | 538 | 351 |
Total interest income | 41,562 | 37,642 |
Interest expense: | ||
Deposits | 4,313 | 3,449 |
Short-term borrowings | 910 | 392 |
Subordinated debt | 1,571 | 1,567 |
Total interest expense | 6,794 | 5,408 |
Net interest income | 34,768 | 32,234 |
Provision for loan losses | 2,130 | 2,100 |
Net interest income after provision for loan losses | 32,638 | 30,134 |
Noninterest income: | ||
Service charges on deposit accounts | 1,472 | 1,455 |
Other fees and charges | 2,235 | 1,857 |
Mortgage banking activities | 28,562 | 25,869 |
Indirect lending activities | 2,148 | 4,426 |
SBA lending activities | 1,157 | 1,818 |
Trust and wealth management fees | 532 | 288 |
Other | 1,027 | 1,657 |
Total noninterest income | 37,133 | 37,370 |
Noninterest expense: | ||
Salaries and employee benefits | 27,561 | 25,438 |
Commissions | 7,506 | 7,498 |
Occupancy | 4,932 | 4,163 |
Professional and other services | 4,798 | 4,067 |
Other | 9,945 | 9,406 |
Total noninterest expense | 54,742 | 50,572 |
Income before income tax expense | 15,029 | 16,932 |
Income tax expense | 3,262 | 6,405 |
Net income | $ 11,767 | $ 10,527 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.44 | $ 0.40 |
Diluted (in dollars per share) | 0.43 | 0.40 |
Cash dividends paid per common share (in dollars per share) | $ 0.12 | $ 0.12 |
Other comprehensive (loss)/income, net of tax: | ||
Change in net unrealized (losses)/gains on available-for-sale debt securities, net of tax effect of ($365) and $4, respectively | $ (1,094) | $ 7 |
Other comprehensive (loss)/income, net of tax | (1,094) | 7 |
Total comprehensive income | $ 10,673 | $ 10,534 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized market adjustments for the period, tax (benefit) | $ (365) | $ 4 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock | Common Stock | Accumulated Other Comprehensive Income/(Loss), Net of Tax | Retained Earnings | |
Beginning balance (in shares) at Dec. 31, 2016 | 0 | 26,318 | ||||
Beginning balance at Dec. 31, 2016 | $ 362,647 | $ 0 | $ 205,309 | $ 692 | $ 156,646 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 10,527 | 10,527 | ||||
Other comprehensive income, net of tax | 7 | 7 | ||||
Total comprehensive income | 10,534 | |||||
Common stock issued under various employee plans, net (in shares) | 40 | |||||
Common stock issued under various employee plans, net | 1,281 | $ 1,281 | ||||
Cash dividends paid | (3,160) | (3,160) | ||||
Ending balance (in shares) at Mar. 31, 2017 | 0 | 26,358 | ||||
Ending balance at Mar. 31, 2017 | 371,302 | $ 0 | $ 206,590 | 699 | 164,013 | |
Beginning balance (in shares) at Dec. 31, 2017 | 0 | 27,019 | ||||
Beginning balance at Dec. 31, 2017 | 401,632 | $ 0 | $ 217,555 | 383 | 183,694 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 11,767 | 11,767 | ||||
Impact of adoption of new accounting standard | [1] | 0 | 80 | (80) | ||
Other comprehensive income, net of tax | (1,094) | (1,094) | ||||
Total comprehensive income | 10,673 | |||||
Common stock issued under various employee plans, net (in shares) | 15 | |||||
Common stock issued under various employee plans, net | 1,679 | $ 1,679 | ||||
Cash dividends paid | (3,240) | (3,240) | ||||
Ending balance (in shares) at Mar. 31, 2018 | 0 | 27,034 | ||||
Ending balance at Mar. 31, 2018 | $ 410,744 | $ 0 | $ 219,234 | $ (631) | $ 192,141 | |
[1] | Represents the impact of the adoption of Accounting Standards Update ("ASU") No. 2018-02 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 11,767 | $ 10,527 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Provision for loan losses | 2,130 | 2,100 |
Depreciation and amortization of premises and equipment | 1,091 | 1,159 |
Amortization of FDIC indemnification asset, net | 4 | 510 |
Accretion of purchase discounts or premiums, net | (291) | (309) |
Other amortization | 236 | 363 |
Impairment of other real estate | 85 | 839 |
Amortization and impairment of servicing rights, net | 48 | 2,475 |
Share-based compensation expense | 1,478 | 752 |
Postretirement benefits, net | 618 | 526 |
Gains on loan sales, including origination of servicing rights | (17,723) | (20,659) |
Net gain on sales of other real estate | 0 | (301) |
Net income on bank owned life insurance | (401) | (436) |
Net change in deferred income tax | (365) | 5,632 |
Net change in fair value of loans held-for-sale | (2,109) | (2,907) |
Originations of loans held-for-sale | (659,011) | (668,270) |
Proceeds from sales of loans held-for-sale | 605,996 | 787,827 |
Net payments (paid to) received from FDIC under loss-share agreements | (256) | 413 |
(Increase) decrease in other assets | (592) | 2,878 |
Increase in other liabilities | 5,346 | 5,891 |
Net cash (used in) provided by operating activities | (51,949) | 129,010 |
Cash flows from investing activities: | ||
Purchases of investment securities available-for-sale | (9,923) | 0 |
Maturities, calls, and repayment of investment securities available-for-sale | 3,826 | 4,999 |
Maturities, calls and repayment of investment securities held-to-maturity | 330 | 576 |
Purchases of FHLB stock | (8,671) | (3,493) |
Redemption of FHLB stock | 0 | 3,187 |
Net increase in loans | (135,550) | (54,772) |
Proceeds from sales of other real estate | 0 | 3,986 |
Purchases of premises and equipment | (1,252) | (700) |
Net cash used in investing activities | (151,240) | (46,217) |
Cash flows from financing activities: | ||
Net increase in noninterest-bearing deposits | 26,717 | 40,472 |
Net increase in interest-bearing deposits | 6,490 | 84,042 |
Net decrease in other short-term borrowings | (12,785) | (3,885) |
Proceeds from FHLB advances | 725,000 | 200,000 |
Repayments on FHLB advances | (525,000) | (200,000) |
Proceeds from the issuance of common stock, net | 201 | 529 |
Cash dividends paid on common stock | (3,240) | (3,160) |
Net cash provided by financing activities | 217,383 | 117,998 |
Net increase in cash and cash equivalents | 14,194 | 200,791 |
Cash and cash equivalents, beginning of period | 186,302 | 149,711 |
Cash and cash equivalents, end of period | 200,496 | 350,502 |
Cash paid during the period for: | ||
Interest on deposits and borrowings | 5,701 | 4,366 |
Income taxes | 0 | 7 |
Transfers of loans from held-for-sale to held for investment | 1,684 | 0 |
Transfers of loans to other real estate | $ 132 | $ 994 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements include the accounts of Fidelity Southern Corporation (“FSC” or “Fidelity”) and its wholly-owned subsidiaries. FSC owns 100% of Fidelity Bank (the “Bank”) and LionMark Insurance Company, an insurance agency offering consumer credit related insurance products. FSC also owns three subsidiaries established to issue trust preferred securities, which are not consolidated for financial reporting purposes in accordance with current accounting guidance, as FSC is not the primary beneficiary. The “Company” or “our,” as used herein, includes FSC and its consolidated subsidiaries, unless the context otherwise requires. These unaudited consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) followed within the financial services industry for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information or notes required for complete financial statements. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the periods presented. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses; the calculations of, amortization of, and the potential impairment of capitalized servicing rights; the valuation of loans held-for-sale and certain derivatives; the valuation of real estate or other assets acquired in connection with foreclosures or in satisfaction of loans; estimates used for fair value acquisition accounting, goodwill impairment testing and valuation of deferred income taxes. In addition, the actual lives of certain amortizable assets and income items are estimates subject to change. The Company principally operates in one business segment, which is community banking. In the opinion of management, all adjustments, consisting of normal and recurring items, considered necessary for a fair presentation of the consolidated financial statements for the interim periods have been included. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts reported in prior periods have been reclassified to conform to current year presentation. These reclassifications did not have a material effect on previously reported net income, shareholders’ equity or cash flows. Operating results for the three -month period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K and Annual Report to Shareholders for the year ended December 31, 2017 . The Company’s significant accounting policies are described in Note 1 of the Notes to Consolidated Financial Statements included in the 2017 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”). There were no new accounting policies or changes to existing policies adopted during the first three months of 2018 which had a significant effect on the Company’s results of operations or statement of financial condition. For interim reporting purposes, the Company follows the same basic accounting policies and considers each interim period as an integral part of an annual period. Contingencies Due to the nature of their activities, the Company and its subsidiaries are at times engaged in various legal proceedings that arise in the course of normal business, some of which were outstanding as of March 31, 2018 . Although the ultimate outcome of all claims and lawsuits outstanding as of March 31, 2018 cannot be ascertained at this time, it is the opinion of management that these matters, when resolved, will not have a material adverse effect on the Company’s results of operations or financial condition. Tax Cuts and Jobs Act Public Law No. 115-97, known as the Tax Cuts and Jobs Act (the "Tax Act"), was enacted on December 22, 2017 and reduced the U.S. Federal corporate tax rate from 35% to 21% effective January 1, 2018. Additionally, on December 22, 2017, the Securities and Exchange Commission (“SEC”) issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for provisions of the Tax Act. SAB 118 provides a measurement period of up to one year from the enactment date to complete the accounting. Any adjustments during this measurement period will be included in net earnings from continuing operations as an adjustment to income tax expense in the reporting period when such adjustments are determined. Based on the information available and current interpretation of the provisions of the Tax Act, the Company completed the remeasurement of its net deferred tax liability at December 31, 2017 which reduced income tax expense by $4.9 million for the fourth quarter of 2017. For the three months ended March 31, 2018, no further adjustments were recorded related to the remeasurement of the Company's net deferred tax liability balance as a result of the Tax Act. The final impact of the Tax Act may differ from estimates used to calculate the remeasurement of its net deferred tax liability balance as a result of changes in management’s interpretations and assumptions, as well as new guidance that may be issued by the Internal Revenue Service. Recently Adopted Accounting Pronouncements In March 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2018-05, “ Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SAB 118 ). This guidance amends SEC paragraphs in ASC 740, Income Taxes , to reflect SAB 118, which provides guidance for companies that are not able to complete their accounting for the income tax effects of the Tax Cuts and Jobs Act in the period of enactment. This ASU was effective upon issuance. The adoption of this ASU did not have a significant impact on the Company's Consolidated Financial Statements. In March 2018, the FASB issued ASU No. 2018-04, “ Investments-Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 , to delete ASC 320-10-S99-1, which had codified SAB Topic 5.M in the ASC. This ASU also removes from the ASC special requirements in SEC Regulation S-X Rule 3A-05 for public utility holding companies. In November 2017, the SEC issued Staff Accounting Bulletin (SAB) No. 117 to bring its existing guidance into conformity with Topic 321 of the FASB Accounting Standards Codification (ASC), “ Investments-Equity Securities .” SAB 117 states that SAB Topic 5.M, “ Other Than Temporary Impairment of Certain Investments in Equity Securities ,” no longer is applicable upon a registrant’s adoption of ASC 321. For public business entities, Topic 321 was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Upon adoption of ASC 321, investments in equity securities that previously qualified for presenting changes in fair value within other comprehensive income will be measured at fair value with changes in fair value presented immediately in net income. These changes were effective upon issuance.The adoption of this ASU did not have a significant impact on the Company's Consolidated Financial Statements. In February 2018, the FASB issued ASU No. 2018-03, “ Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2018-03"). This guidance amends ASU No. 2016-01, “ Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities ” (“ASU 2016-01”) on recognizing and measuring financial instruments to clarify certain aspects of the guidance originally issued in January 2016. ASU 2016-01 was intended to improve the recognition and measurement of financial instruments by requiring that (a) equity investments that do not result in consolidation and are not accounted for under the equity method to be measured at fair value through net income, unless they qualify for the practicability exception for investments that do not have readily determinable fair values; (b) changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option will be recognized in other comprehensive income; and (c) entities will make the assessment of the realizability of a deferred tax asset related to an available-for-sale debt security in combination with other deferred tax assets. The guidance in ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, and interim periods therein. Early adoption was permitted. The amendments in ASU 2018-03 are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018 with early adoption permitted, including adoption in any interim period, for public business entities. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. The adoption of ASU 2018-03 and ASU 2016-01 effective January 1, 2018 did not have a significant impact on the Company's Consolidated Financial Statements. In February 2018, the FASB issued ASU No. 2018-02, “ Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” ("ASU 2018-02"), that allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act that passed U.S. Congress in December 2017. The amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement-Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income. The amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. These amendments should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company elected to early adopt this guidance effective January 1, 2018. The adoption of ASU 2018-02 resulted in a reclassification of stranded tax effects of $80,000 to accumulated other comprehensive income (loss) from retained earnings. In May 2017, the FASB issued ASU No. 2017-09, “ Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, ” (“ASU 2017-09”) that provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Under the new guidance, an entity should not account for the effect of a modification if all of the following conditions are met. These conditions are: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this ASU. The amendments in this ASU affect any entity that changes the terms or conditions of a share-based payment award and are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption was permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued and should be applied prospectively to an award modified on or after the adoption date. The adoption of this ASU effective January 1, 2018 did not have a significant impact on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ,” (“ASU 2017-07”) that will change how employers who sponsor defined benefit pension and/or other postretirement benefit plans present the net periodic benefit cost in the income statement. Employers will be required to present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. The other components of the net periodic benefit cost will be presented separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. Employers will be required to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement. The guidance on the presentation of the components of net periodic benefit cost in the income statement will be applied retrospectively while the guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component will be applied prospectively. Employers will have to provide the relevant disclosures required under ASC 250, Accounting Changes and Error Corrections, in the first interim and annual periods when they adopt the guidance. The guidance also provides a practical expedient for disaggregating the service cost component and other components for comparative periods. An employer that elects to apply the practical expedient must disclose the reason for doing so and other qualitative information about the capitalization of net periodic benefit cost. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods therein. Early adoption was permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. That is, early adoption must be within the first interim period if an employer issues interim financial statements. The adoption of this ASU effective January 1, 2018 did not have a significant impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ,” (“ASU 2017-04”) which simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test. Under Step 2, an entity was required to determine the fair value of individual assets and liabilities of a reporting unit (including unrecognized assets and liabilities) using the procedure for determining fair values in a business combination. Under the new guidance, goodwill impairment will be measured at the amount by which a reporting unit’s carrying amount, including those with a zero or negative carrying amount, exceeds its fair value. Any resulting impairment is limited to the carrying amount of goodwill. An entity must also disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount. The new guidance is effective for public business entities for fiscal years beginning after December 15, 2019, and is required to be applied prospectively with early adoption permitted for any impairment tests performed on testing dates after January 1, 2017. The early adoption of this ASU in the fourth quarter of 2017 did not have a significant impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-03, “ Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323), ” (“ASU 2017-03”). ASU 2017-03 amends the Codification for SEC staff announcements made at two Emerging Issues Task Force (EITF) meetings. At the September 2016 meeting, the SEC staff expressed its expectations about the extent of disclosures registrants should make about the effects of the new FASB guidance (including any amendments issued prior to adoption) on revenue from the new FASB guidance (ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606), ” (“ASU 2014-09”)), leases, (ASU No. 2016-02, “Leases,” (“ASU 2016-02”)), and credit losses on financial instruments (ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, ” (“ASU 2016-13”)), in accordance with SAB Topic 11.M. That Topic required registrants to disclose the effect that recently issued accounting standards will have on their financial statements when adopted in a future period. ASU 2017-03 incorporated these SEC staff views into ASC 250 and added references to that guidance in the transition paragraphs of each of the three new standards. The Company adopted this guidance in the fourth quarter of 2016. The adoption of this ASU did not have a significant impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-01, “ Business Combinations (Topic 805) - Clarifying the Definition of a Business,” (“ASU 2017-01”) which provides clarification on the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in ASU 2017-01 provide a screen to determine when an asset is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the asset is not a business. This screen reduces the number of transactions that need to be further evaluated, and therefore are considered businesses. The amendments also provide a framework to assist entities in evaluating whether both an input and a substantive process are present. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods. Early adoption was permitted. The amendments in this ASU should be applied prospectively on or after the effective date and no disclosures are required at transition. The adoption of this ASU effective January 1, 2018 did not have a significant impact on the Company’s Consolidated Financial Statements. In December 2016, the FASB issued ASU No. 2016-20, “ Technical Corrections and Improvements to Topic 606: Revenue from Contracts with Customers. ” ASU 2016-20 updates the new revenue standard by clarifying issues that had arisen from ASU No. 2014-09 but does not change the core principle of the new standard. In August 2015, the FASB issued ASU No. 2015-14, “ Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date ” which deferred the effective date of ASU No. 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”) by one year to annual reporting periods beginning after December 15, 2017, and interim reporting periods therein. The FASB had previously issued ASU 2014-09 in May 2014. ASU 2014-09 requires that entities recognize revenue to reflect the transfers of goods or services to customers in an amount equal to the consideration the entity receives or expects to receive. The Company’s revenue is comprised of net interest income and noninterest income. As ASU 2014-09 does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, net interest income, noninterest income from mortgage origination and servicing activities, and gain and losses from securities transactions are specifically excluded from the scope of the guidance. The Company adopted the guidance on January 1, 2018 utilizing the modified retrospective approach. The Company did not record a cumulative effect adjustment to opening retained earnings as the adoption of ASU 2014-09 did not have a significant impact on the Company's Consolidated Financial Statements. The Company also completed its evaluation of the expanded disclosure requirements for disaggregation of revenue and other information regarding material contracts and began presenting the required disclosures in its Consolidated Financial Statements for the quarter ended March 31, 2018. See Note 11. Revenue Recognition for more information. In November 2016, the FASB issued ASU No. 2016-18, “ Statement of Cash Flows (Topic 230) — Restricted Cash ,” (“ASU 2016-18”). The amendments in this ASU require that the statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The ASU is to be applied retrospectively and is effective for the Company beginning in fiscal 2018, including interim periods therein. Early adoption was permitted, including adoption in an interim period, with retrospective application. The adoption of this ASU effective January 1, 2018 did not have a significant impact on the Company’s Consolidated Financial Statements. In October 2016, the FASB issued ASU No. 2016-16, “ Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory, ” (“ASU 2016-16”). This guidance addresses the income tax consequences of intra-entity transfers of assets other than inventory. GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. In addition, interpretations of this guidance have developed in practice over the years for transfers of certain intangible and tangible assets. The amendments in the update will require recognition of current and deferred income taxes resulting from an intra-entity transfer of an asset other than inventory when the transfer occurs. This standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The amendments in this ASU should be applied using a modified retrospective approach through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption was permitted as of the beginning of an annual reporting period for which financial statements have not been issued or made available for issuance. The adoption of this ASU effective January 1, 2018 did not have a significant impact on the Company’s Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, ” (“ASU 2016-15”) intended to reduce diversity in practice in how certain cash receipts and cash payments are classified in the statement of cash flows. The guidance addresses eight issues: (1) cash payments for debt prepayment or debt extinguishment costs; (2) cash payments for the settlement of zero-coupon debt instruments; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance (“COLI”) policies, including bank-owned life insurance (“BOLI”) policies; (6) distributions received from equity method investments; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows using the application of the predominance principle, whereby an entity should classify each separately identifiable cash source and use on the basis of the nature of the underlying cash flows. The amendments in this ASU are to be applied retrospectively and are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption was permitted, including adoption in an interim period, with adoption of all of the guidance in the same period. The adoption of this ASU effective January 1, 2018 did not have a significant impact on the Company’s Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2017, the FASB issued ASU No. 2017-12, “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ,” (“ASU 2017-12”) that is intended to improve and simplify rules relevant to hedge accounting. This ASU refines and expands hedge accounting for both financial (e.g., interest rate) and commodity risks. ASU 2017-12 is intended to improve transparency and accounting through a focus on: (1) measurement and hedging strategies; (2) presentation and disclosure; and (3) easing the administrative burden that hedge accounting can create for an entity. Entities will (a) measure the hedged item in a partial-term fair value hedge of interest rate risk by assuming the hedged item has a term that reflects only the designated cash flows being hedged; (b) consider only how changes in the benchmark interest rate affect a decision to settle a pre-payable instrument before its scheduled maturity when calculating the fair value of the hedged item; and (c) measure the fair value of the hedged item using the benchmark rate component of the contracted coupon cash flows determined at inception. The amendments in this ASU shall take effect for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted in any interim period or fiscal years before the effective date of the standard. The adoption of this ASU is not expected to have a significant impact on the Company’s Consolidated Financial Statements based on its current hedging strategies. However, the Company is currently evaluating this ASU to determine whether its provisions will enhance its risk management strategies. In March 2017, the FASB issued ASU No. 2017-08, “ Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities ,” (“ASU 2017-08”) that amends the amortization period for certain purchased callable debt securities held at a premium. Under GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. The ASU shortens the amortization period for the premium to the earliest call date. This amendment affects all entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date, i.e., at a premium. The guidance is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. These amendments should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the adoption period. In addition, in the period of adoption, disclosures should be provided about a change in accounting principle. The adoption of this ASU is not expected to have a significant impact on the Company’s Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13 which significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. In issuing the standard, the FASB is responding to criticism that today’s guidance delays recognition of credit losses. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) securities. For AFS securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. All other things being equal, higher credit losses will result in lower regulatory capital ratios for the Company. The ASU also simplifies the accounting model for purchased credit-impaired securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. The standard will take effect for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application for all organizations will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company has established a working group which includes representatives from various internal departments with the expertise needed to implement the guidance. As part of its implementation plan, the Company has allocated staff and put resources in place to evaluate the appropriate model options and is collecting, reviewing, and validating ten years of historical loan data for use in these models. The Company is also implementing a software package supported by a third-party vendor to automate the calculation of the allowance for loan losses under the new methodology. Management is continuing to evaluate the impact that the guidance will have on the Company’s Consolidated Financial Statements and its regulatory capital ratios through its effective date. In February 2016, the |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Management’s primary objective in managing the investment securities portfolio includes maintaining a portfolio of high quality investments with competitive returns while providing for pledging and liquidity needs within overall asset and liability management parameters. The Company is required under federal regulations to maintain adequate liquidity to ensure safe and sound operations. As such, management regularly evaluates the investment portfolio for cash flows, the level of loan production and sales, current interest rate risk strategies and the potential future direction of market interest rate changes. Individual investment securities differ in terms of default, interest rate, liquidity and expected rate of return risk. The following table summarizes the amortized cost and fair value of debt securities and the related gross unrealized gains and losses at March 31, 2018 , and December 31, 2017 : March 31, 2018 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investment securities available-for-sale: Obligations of U.S. Government sponsored enterprises $ 22,173 $ 58 $ (275 ) $ 21,956 Municipal securities 9,302 232 (42 ) 9,492 SBA pool securities 12,148 — (396 ) 11,752 Residential mortgage-backed securities 57,664 577 (262 ) 57,979 Commercial mortgage-backed securities 24,130 — (733 ) 23,397 Total available-for-sale $ 125,417 $ 867 $ (1,708 ) $ 124,576 Investment securities held-to-maturity: Municipal securities $ 8,581 $ 17 $ (155 ) $ 8,443 Residential mortgage-backed securities 8,784 83 (340 ) 8,527 Commercial mortgage-backed securities 3,977 — — 3,977 Total held-to-maturity $ 21,342 $ 100 $ (495 ) $ 20,947 December 31, 2017 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investment securities available-for-sale: Obligations of U.S. Government sponsored enterprises $ 22,182 $ 141 $ (98 ) $ 22,225 Municipal securities 9,318 340 (23 ) 9,635 SBA pool securities 13,031 6 (127 ) 12,910 Residential mortgage-backed securities 50,251 803 (76 ) 50,978 Commercial mortgage-backed securities 24,721 6 (354 ) 24,373 Total available-for-sale $ 119,503 $ 1,296 $ (678 ) $ 120,121 Investment securities held-to-maturity: Municipal securities $ 8,588 $ 53 $ — $ 8,641 Residential mortgage-backed securities 9,100 99 (156 ) 9,043 Commercial mortgage-backed securities 4,001 — — 4,001 Total held-to-maturity $ 21,689 $ 152 $ (156 ) $ 21,685 The Company held 26 and 19 investment securities available-for-sale that were in an unrealized loss position at March 31, 2018 , and December 31, 2017 , respectively. There were seven and six investment securities held-to-maturity that were in an unrealized loss position at March 31, 2018 , and December 31, 2017 , respectively. The following table reflects the gross unrealized losses and fair values of the investment securities with unrealized losses, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position: March 31, 2018 Less Than 12 Months 12 Months or Longer (in thousands) Fair Gross Unrealized Fair Gross Unrealized Investment securities available-for-sale: Obligations of U.S. Government sponsored enterprises $ 19,796 $ (275 ) $ — $ — Municipal securities $ 1,808 $ (8 ) $ 1,034 $ (34 ) SBA pool securities 7,106 (207 ) 4,646 (189 ) Residential mortgage-backed securities 10,968 (92 ) 4,998 (170 ) Commercial mortgage-backed securities 11,785 (261 ) 11,610 (472 ) Total available-for-sale $ 51,463 $ (843 ) $ 22,288 $ (865 ) Investment securities held-to-maturity: Municipal securities $ 6,838 $ (155 ) $ — $ — Residential mortgage-backed securities $ — $ — $ 7,248 $ (340 ) Total held-to-maturity $ 6,838 $ (155 ) $ 7,248 $ (340 ) December 31, 2017 Less Than 12 Months 12 Months or Longer (in thousands) Fair Gross Unrealized Fair Gross Unrealized Investment securities available-for-sale: Obligations of U.S. Government sponsored enterprises $ 14,974 $ (98 ) $ — $ — Municipal securities — — 1,050 (23 ) SBA pool securities 3,285 (42 ) 4,979 (85 ) Residential mortgage-backed securities 1,835 (8 ) 5,383 (68 ) Commercial mortgage-backed securities 10,051 (89 ) 12,360 (265 ) Total available-for-sale $ 30,145 $ (237 ) $ 23,772 $ (441 ) Investment securities held-to-maturity: Residential mortgage-backed securities — — 7,652 (156 ) Total held-to-maturity $ — $ — $ 7,652 $ (156 ) At March 31, 2018 , and December 31, 2017 , the unrealized losses on investment securities were related to market interest rate fluctuations since purchase and not credit losses. Management does not have the intent to sell the temporarily impaired securities and it is not more likely than not that the Company will be required to sell the investments before recovery of the amortized cost, which may be maturity. The unrealized loss position has increased during 2017 and 2018, primarily in the mortgage-backed securities and SBA pool securities categories, and is the result of the increase in interest rates. As part of the Company’s evaluation of its intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, the Company considers its investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. Accordingly, as of March 31, 2018 , management has reviewed its portfolio for other-than-temporary-impairment and believes the impairment detailed in the table above is temporary, and no other-than-temporary impairment loss has been recognized in the Company’s Consolidated Statements of Comprehensive Income. Management continues to monitor all of its securities with a high degree of scrutiny. There can be no assurance that the Company will not conclude in future periods that conditions existing at that time indicate some or all of these securities may be sold or are other than temporarily impaired, which would require a charge to earnings in such periods. The amortized cost and fair value of investment securities at March 31, 2018 , and December 31, 2017 , are categorized in the following table by remaining contractual maturity. The amortized cost and fair value of securities not due at a single maturity (i.e., mortgage-backed securities) are shown separately and are calculated based on estimated average remaining life: March 31, 2018 December 31, 2017 (in thousands) Amortized Fair Amortized Fair Investment securities available-for-sale: Obligations of U.S. Government sponsored enterprises Due after one year through five years $ 21,170 $ 20,913 $ 21,179 $ 21,160 Due after five years through ten years 1,003 1,043 1,003 1,065 Municipal securities Due after one year through five years 1,498 1,468 1,503 1,488 Due after five years through ten years 2,750 2,837 2,753 2,877 Due after ten years 5,054 5,187 5,062 5,270 SBA pool securities Due after five years through ten years 7,313 7,106 7,967 7,931 Due after ten years 4,835 4,646 5,064 4,979 Residential mortgage-backed securities 57,664 57,979 50,251 50,978 Commercial mortgage-backed securities 24,130 23,397 24,721 24,373 Total available-for-sale $ 125,417 $ 124,576 $ 119,503 $ 120,121 Investment securities held-to-maturity: Municipal securities Due after five years through ten years $ 1,588 $ 1,604 $ 1,588 $ 1,641 Due after ten years 6,993 6,839 7,000 7,000 Residential mortgage-backed securities 8,784 8,527 9,100 9,043 Commercial mortgage-backed securities 3,977 3,977 4,001 4,001 Total held-to-maturity $ 21,342 $ 20,947 $ 21,689 $ 21,685 There was one investment security available-for-sale called, matured, or paid off during the three months ended March 31, 2018 , and two investment securities called, matured, or paid off during the three months ended March 31, 2017 . There were no gross gains or losses for the investment securities that were called, matured, or paid off during the three months ended March 31, 2018 , or 2017 . There were no transfers from investment securities available-for-sale to investment securities held-to-maturity during the three months ended March 31, 2018, or 2017 . The following table summarizes the investment securities that were pledged as collateral at March 31, 2018 , and December 31, 2017 : (in thousands) March 31, 2018 December 31, 2017 Public deposits $ 62,844 $ 60,415 Securities sold under repurchase agreements 25,551 19,485 Total pledged securities $ 88,395 $ 79,900 |
Loans Held-for-Sale
Loans Held-for-Sale | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans Held-for-Sale | Loans Held-for-Sale Residential mortgage loans held-for-sale are carried at fair value and SBA and indirect automobile loans held-for-sale are carried at the lower of cost or fair value. The following table summarizes loans held-for-sale at March 31, 2018 , and December 31, 2017 : (in thousands) March 31, 2018 December 31, 2017 Residential mortgage $ 355,515 $ 269,140 SBA 19,785 13,615 Indirect automobile 50,000 75,000 Total loans held-for-sale $ 425,300 $ 357,755 During the three months ended March 31, 2018 , the Company transferred loans with unpaid principal balances of $1.7 million to the held for investment residential mortgage portfolio. During the three months ended March 31, 2017 , no loans were transferred to the held for investment residential mortgage portfolio. The Company had residential mortgage loans held-for-sale with unpaid principal balances of $220.6 million and $154.2 million pledged to the FHLB at March 31, 2018 , and December 31, 2017 , respectively. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans | Loans Loans outstanding, by class, are summarized in the following table at carrying value and include net unamortized costs of $36.0 million and $35.9 million at March 31, 2018 , and December 31, 2017 , respectively. Acquired loans represent previously acquired loans, which include $2.2 million and $2.3 million in loans covered under Loss Share Agreements with the FDIC at March 31, 2018 and December 31, 2017, respectively. Legacy loans represent existing portfolio loans originated by the Bank prior to each acquisition, additional loans originated subsequent to each acquisition and Government National Mortgage Association ("GNMA") optional repurchase loans (collectively, “legacy loans”). March 31, 2018 Loans (in thousands) Legacy Acquired Total Commercial $ 771,820 $ 125,477 $ 897,297 SBA 132,439 7,869 140,308 Total commercial loans 904,259 133,346 1,037,605 Construction 261,700 4,080 265,780 Indirect automobile 1,719,670 — 1,719,670 Installment loans and personal lines of credit 27,267 1,449 28,716 Total consumer loans 1,746,937 1,449 1,748,386 Residential mortgage 489,118 23,555 512,673 Home equity lines of credit 133,798 16,066 149,864 Total mortgage loans 622,916 39,621 662,537 Total loans $ 3,535,812 $ 178,496 $ 3,714,308 December 31, 2017 Loans (in thousands) Legacy Acquired Total Commercial $ 675,544 $ 135,655 $ 811,199 SBA 133,186 8,022 141,208 Total commercial loans 808,730 143,677 952,407 Construction 243,112 5,205 248,317 Indirect automobile 1,716,156 — 1,716,156 Installment loans and personal lines of credit 24,158 1,837 25,995 Total consumer loans 1,740,314 1,837 1,742,151 Residential mortgage 461,194 28,527 489,721 Home equity lines of credit 131,049 17,321 148,370 Total mortgage loans 592,243 45,848 638,091 Total loans $ 3,384,399 $ 196,567 $ 3,580,966 The Company has extended loans to certain officers and directors. The Company does not believe these loans involve more than the normal risk of collectability or present other unfavorable features when originated. None of the related party loans were classified as nonaccrual, past due, restructured, or potential problem loans at March 31, 2018 , or December 31, 2017 . Nonaccrual Loans The accrual of interest income is generally discontinued when a loan becomes 90 days past due. Past due status is based on the contractual terms of the loan agreement. A loan may be placed on nonaccrual status sooner if reasonable doubt exists as to the full, timely collection of principal or interest. When a loan is placed on nonaccrual status, previously accrued and uncollected interest is reversed against current period interest income. If a borrower on a residential mortgage loan previously sold makes no payment for three consecutive months, the Company, as servicer, may exercise its option to repurchase the delinquent loan from its securitized loan pool in an amount equal to 100% of the loan’s remaining principal balance less the principal payments advanced to the pool prior to the buyback, in which case no previously accrued interest would be reversed since the loan was previously sold. Interest advanced to the pool prior to the buyback is capitalized for future reimbursement as part of the government guarantee. Subsequent interest collected on nonaccrual loans is recorded as a principal reduction. Nonaccrual loans are returned to accrual status when all contractually due principal and interest amounts are brought current and the future payments are reasonably assured. Loans in nonaccrual status are presented by class of loans in the following table. The Company has repurchased certain Government National Mortgage Association (“GNMA”) government-guaranteed loans, which are accounted for in nonaccrual status. The Company’s loss exposure on government-guaranteed loans is mitigated by the government guarantee in whole or in part. Purchased credit impaired (“PCI”) loans are considered to be performing due to the application of the accretion method and are excluded from the table. (in thousands) March 31, 2018 December 31, 2017 Commercial $ 13,270 $ 11,314 SBA 4,592 2,503 Total commercial loans 17,862 13,817 Construction 4,338 4,520 Indirect automobile 1,535 1,912 Installment loans and personal lines of credit 436 440 Total consumer loans 1,971 2,352 Residential mortgage 30,650 23,169 Home equity lines of credit 3,885 3,154 Total mortgage loans 34,535 26,323 Total nonaccrual loans $ 58,706 $ 47,012 If such nonaccrual loans had been on a full accrual basis, interest income on these loans for the three months ended March 31, 2018, and 2017 , would have been $648,000 and $531,000 , respectively. The amount of repurchased GNMA government-guaranteed loans, primarily residential mortgage loans, included in the table above was $26.1 million and $19.5 million at March 31, 2018 , and December 31, 2017 , respectively. Accruing loans delinquent 30 - 89 days, 90 days or more, and troubled debt restructured loans (“TDRs”) accruing interest, including PCI loans, presented by class of loans at March 31, 2018 , and December 31, 2017 , were as follows: March 31, 2018 December 31, 2017 (in thousands) Accruing Accruing TDRs Accruing Accruing TDRs Commercial $ 927 $ 7,257 $ 8,404 $ 3,821 $ 5,722 $ 8,468 SBA 4,417 63 1,446 5,560 70 3,800 Construction 286 48 — — 102 — Indirect automobile 2,257 — 2,132 3,971 87 1,960 Installment and personal lines of credit 247 — 30 449 — 33 Residential mortgage 6,581 347 395 7,447 268 495 Home equity lines of credit 980 13 53 831 64 51 Total $ 15,695 $ 7,728 $ 12,460 $ 22,079 $ 6,313 $ 14,807 TDR Loans During the three months ended March 31, 2018 , a mortgage loan in the amount of $12,000 was modified for interest rate, and $1.1 million in loans were modified for term, which were mortgage and indirect auto loans. During the three months ended March 31, 2017 , the amount of loans that were modified for interest rate was $187,000 , which were all commercial loans. Modified PCI loans are not removed from their accounting pool and accounted for as TDRs, even if those loans would otherwise be deemed TDRs. During the three months ended March 31, 2018 , the amount of loans which were restructured in the past twelve months and subsequently redefaulted was $267,000 which was comprised of mortgage and indirect loans. During the three months ended March 31, 2017 , the amount of loans which were restructured in the past twelve months and subsequently redefaulted was $195,000 which was comprised of commercial and indirect loans. The Company defines subsequently redefaulted as a payment default within 12 months of the restructuring date. The Company had total TDRs with a balance of $21.0 million and $20.7 million at March 31, 2018 , and December 31, 2017 , respectively. There were no net charge-offs/recoveries of TDR loans for the three months ended March 31, 2018 and net charge-offs of $44,000 for the three months ended March 31, 2017 . Net charge-offs on such loans are factored into the rolling historical loss rate, which is used in the calculation of the allowance for loan losses. The Company is not committed to lend additional amounts to customers with outstanding loans classified as TDRs as of March 31, 2018 and December 31, 2017 . Pledged Loans Presented in the following table is the unpaid principal balance of loans held for investment that were pledged to the Federal Home Loan Bank of Atlanta (“FHLB of Atlanta”) as collateral for borrowings under a blanket lien arrangement at March 31, 2018 , and December 31, 2017 : (in thousands) March 31, 2018 December 31, 2017 Commercial $ 248,844 $ 242,695 Home equity lines of credit 104,575 94,526 Residential mortgage 388,538 351,591 Total $ 741,957 $ 688,812 Indirect automobile loans with an unpaid principal balance of approximately $330.0 million at March 31, 2018 , and December 31, 2017 , respectively, were pledged to the Federal Reserve Bank of Atlanta (“FRB”) as collateral for potential Discount Window borrowings under a blanket lien arrangement. Impaired Loans The following tables present by class the unpaid principal balance, recorded investment and related allowance for impaired legacy loans and acquired non PCI loans at March 31, 2018 , and December 31, 2017 . Legacy impaired loans include all TDRs and all other nonaccrual loans, excluding nonaccrual loans below the Company’s specific review threshold: March 31, 2018 December 31, 2017 (in thousands) Unpaid Recorded (1) Related Unpaid Recorded (1) Related Impaired Loans with Allowance Commercial $ 18,488 $ 17,634 $ 1,671 $ 11,877 $ 11,824 $ 839 SBA 3,637 2,753 259 6,634 5,664 294 Construction — — — — — — Installment and personal lines of credit 336 283 214 343 290 219 Residential mortgage 5,107 5,058 612 4,838 4,799 616 Home equity lines of credit 1,539 1,416 728 831 745 633 Loans $ 29,107 $ 27,144 $ 3,484 $ 24,523 $ 23,322 $ 2,601 March 31, 2018 December 31, 2017 (in thousands) Unpaid Recorded (1) Unpaid Recorded (1) Impaired Loans with No Allowance Commercial $ 8,265 $ 6,705 $ 14,839 $ 12,509 SBA 4,448 3,665 1,815 1,133 Construction 5,788 4,338 5,995 4,520 Installment and personal lines of credit 1,445 163 1,445 163 Residential mortgage 29,124 28,402 21,955 21,398 Home equity lines of credit 2,322 2,192 2,452 2,318 Loans $ 51,392 $ 45,465 $ 48,501 $ 42,041 ( 1) The primary difference between the unpaid principal balance and recorded investment represents charge-offs previously taken; it excludes accrued interest receivable due to materiality. Related allowance is calculated on the recorded investment, not the unpaid principal balance. Included in impaired loans with no allowance are $26.1 million and $19.5 million in government-guaranteed residential mortgage loans at March 31, 2018, and December 31, 2017, respectively. These loans are collateralized by first mortgages on the underlying real estate collateral and are individually reviewed for a specific allowance. The average recorded investment in impaired loans and interest income recognized for the three months ended March 31, 2018, and 2017, by class, are summarized in the table below. Impaired loans include legacy impaired loans, all TDRs and all other nonaccrual loans including GNMA optional repurchase loans. Three Months Ended March 31, 2018 2017 (in thousands) Average Interest Average Interest Commercial $ 24,282 $ 152 $ 20,155 $ 139 SBA 6,429 96 9,048 101 Construction 4,424 7 6,274 1 Indirect automobile 3,260 64 2,237 52 Installment and personal lines of credit 447 46 396 34 Residential mortgage 31,317 208 13,763 48 Home equity lines of credit 3,480 19 1,952 16 Total $ 73,639 $ 592 $ 53,825 $ 391 Credit Quality Indicators The Company uses an asset quality ratings system to assign a numeric indicator of the credit quality and level of existing credit risk inherent in a loan ranging from 1 to 8, where a higher rating represents higher risk. Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification and grading in accordance with the Company’s internal loan policy. These ratings are adjusted periodically as the Company becomes aware of changes in the credit quality of the underlying loans through its ongoing monitoring of the credit quality of the loan portfolio. Indirect automobile loans typically receive a risk rating only when being downgraded to an adverse rating which typically occurs when payments of principal and interest are greater than 90 days past due. The Company uses a number of factors, including FICO scoring, to help evaluate the likelihood consumer borrowers will pay their credit obligations as agreed. The weighted-average FICO score for the indirect automobile portfolio was 777 and 762 at March 31, 2018 , and December 31, 2017 , respectively. The following are definitions of the Company's loan rating categories: • Pass – Pass loans include loans rated satisfactory with high, good, average or acceptable business and credit risk. • Special Mention – A special mention loan has potential weaknesses that deserve management’s close attention. • 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. A substandard asset has a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. • Doubtful – Doubtful loans have all the weaknesses inherent in assets classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. • Loss – Loss loans are considered uncollectable and of such little value that their continuance as recorded assets is not warranted. The following tables present the recorded investment in loans, by loan class and risk rating category, as of March 31, 2018 , and December 31, 2017 : (in thousands) March 31, 2018 Asset Rating Commercial SBA Construction Indirect Installment and Personal Lines of Credit Residential Home Equity Total Pass $ 846,587 $ 129,164 $ 255,830 $ — $ 27,953 $ 476,283 $ 145,521 $ 1,881,338 Special Mention 20,333 6,912 5,556 — 232 1,029 141 34,203 Substandard 30,377 4,232 4,394 4,991 531 35,361 4,202 84,088 897,297 140,308 265,780 4,991 28,716 512,673 149,864 1,999,629 Ungraded Performing — — — 1,714,679 — — — 1,714,679 Total $ 897,297 $ 140,308 $ 265,780 $ 1,719,670 $ 28,716 $ 512,673 $ 149,864 $ 3,714,308 (in thousands) December 31, 2017 Asset Rating Commercial SBA Construction Indirect Installment and Personal Lines of Credit Residential Home Equity Total Pass $ 758,271 $ 129,629 $ 235,987 $ — $ 25,229 $ 461,650 $ 145,082 $ 1,755,848 Special Mention 21,264 6,847 7,699 — 231 — — 36,041 Substandard 31,664 4,732 4,631 4,972 535 28,071 3,288 77,893 811,199 141,208 248,317 4,972 25,995 489,721 148,370 1,869,782 Ungraded Performing — — — 1,711,184 — — — 1,711,184 Total $ 811,199 $ 141,208 $ 248,317 $ 1,716,156 $ 25,995 $ 489,721 $ 148,370 $ 3,580,966 Acquired Loans The carrying amount and outstanding balance at March 31, 2018 , of the PCI loans from acquisitions prior to 2017 was $24.3 million and $32.6 million , respectively, and $26.6 million and $35.3 million , respectively, at December 31, 2017 . Changes in the accretable yield, or income expected to be collected on PCI loans, for the three months ended March 31, 2018 and 2017 , were as follows: For the Three Months Ended March 31, (in thousands) 2018 2017 Beginning balance $ 3,005 $ 4,403 Accretion of income (569 ) (360 ) Other activity, net (1) 880 — Ending balance $ 3,316 $ 4,043 (1) Includes changes in cash flows expected to be collected due to changes in timing of liquidation events, prepayment assumptions, etc. |
Allowance for Loan Losses
Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses A summary of changes in the allowance for loan losses (“ALL”) by loan portfolio type is as follows: Three Months Ended March 31, 2018 Commercial Loans (in thousands) Commercial SBA Construction Consumer Mortgage Unallocated Total Beginning balance $ 7,846 $ 1,968 $ 2,396 $ 10,758 $ 5,928 $ 876 $ 29,772 Charge-offs — (105 ) — (1,434 ) (40 ) — (1,579 ) Recoveries (75 ) 5 364 309 14 — 617 Net (charge-offs) / recoveries (75 ) (100 ) 364 (1,125 ) (26 ) — (962 ) Provision for loan losses 1,966 112 (160 ) 726 362 (876 ) 2,130 Ending balance $ 9,737 $ 1,980 $ 2,600 $ 10,359 $ 6,264 $ — $ 30,940 Three Months Ended March 31, 2017 Commercial Loans (in thousands) Commercial SBA Construction Consumer Mortgage Unallocated Total Beginning balance $ 9,331 $ 1,978 $ 2,176 $ 9,812 $ 5,755 $ 779 $ 29,831 Charge-offs (133 ) (85 ) — (1,835 ) (51 ) — (2,104 ) Recoveries 161 44 207 291 35 — 738 Net (charge-offs) / recoveries 28 (41 ) 207 (1,544 ) (16 ) — (1,366 ) Decrease in FDIC indemnification asset (110 ) — — — — — (110 ) Provision for loan losses (1) 200 191 (61 ) 1,667 71 32 2,100 Ending balance $ 9,449 $ 2,128 $ 2,322 $ 9,935 $ 5,810 $ 811 $ 30,455 (1) Net of benefit attributable to FDIC indemnification asset The following tables present, by loan portfolio type, the balance in the ALL disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans: March 31, 2018 Commercial Loans (in thousands) Commercial SBA Construction Consumer Mortgage Unallocated Total Individually evaluated $ 1,671 $ 259 $ — $ 214 $ 1,340 $ — $ 3,484 Collectively evaluated 7,993 1,721 2,575 10,145 4,888 — 27,322 Acquired with deteriorated credit quality 73 — 25 — 36 — 134 Total ALL $ 9,737 $ 1,980 $ 2,600 $ 10,359 $ 6,264 $ — $ 30,940 Individually evaluated $ 24,339 $ 6,419 $ 4,338 $ 445 $ 37,068 $ — $ 72,609 Collectively evaluated 854,212 133,451 261,052 1,747,929 620,738 — 3,617,382 Acquired with deteriorated credit quality 18,746 438 390 12 4,731 — 24,317 Total loans $ 897,297 $ 140,308 $ 265,780 $ 1,748,386 $ 662,537 $ — $ 3,714,308 December 31, 2017 Commercial Loans (in thousands) Commercial SBA Construction Consumer Mortgage Unallocated Total Individually evaluated $ 839 $ 294 $ — $ 219 $ 1,249 $ — $ 2,601 Collectively evaluated 6,935 1,674 2,371 10,539 4,567 876 26,962 Acquired with deteriorated credit quality 72 — 25 — 112 — 209 Total ALL $ 7,846 $ 1,968 $ 2,396 $ 10,758 $ 5,928 $ 876 $ 29,772 Individually evaluated $ 24,333 $ 6,797 $ 4,520 $ 453 $ 29,260 $ — $ 65,363 Collectively evaluated 766,143 133,955 243,344 1,741,635 603,895 — 3,488,972 Acquired with deteriorated credit quality 20,723 456 453 63 4,936 — 26,631 Total loans $ 811,199 $ 141,208 $ 248,317 $ 1,742,151 $ 638,091 $ — $ 3,580,966 The determination of the overall allowance for credit losses has two components, the allowance for originated loans and the allowance for acquired loans. At December 31, 2017 , the allowance for originated loans consisted of specific, general and unallocated components. As of March 31, 2018 , the unallocated component of the allowance for originated loans was eliminated. The ALL for acquired loans is evaluated at each reporting date subsequent to acquisition. Total loans include acquired loans of $178.5 million and $196.6 million at March 31, 2018 , and December 31, 2017 , respectively, which were recorded at fair value when acquired. For acquired performing loans, an allowance is determined for each loan pool using a methodology similar to that used for originated loans and then compared to the remaining fair value discount for that pool. For PCI loans, decreases in cash flows expected to be collected is generally recognized by recording an allowance for loan losses. Subsequent increases in cash flows result in a reversal of the allowance for loan losses to the extent of prior charges, or in the prospective recognition of interest income. |
Other Real Estate
Other Real Estate | 3 Months Ended |
Mar. 31, 2018 | |
Real Estate [Abstract] | |
Other Real Estate | Other Real Estate The following table segregates the other real estate (“ORE”) by type: (in thousands) March 31, 2018 December 31, 2017 Commercial $ 1,382 $ 1,422 Residential 390 258 Undeveloped property 5,896 5,941 Total ORE, net $ 7,668 $ 7,621 The following table summarizes the changes in ORE: For the Three Months Ended March 31, (in thousands) 2018 2017 Beginning balance $ 7,621 $ 14,814 Transfers of loans to ORE 132 994 Sales — (3,685 ) Write-downs (85 ) (839 ) Ending balance $ 7,668 $ 11,284 At March 31, 2018 , and December 31, 2017 , the recorded investment of residential mortgage loans formally in the process of foreclosure proceedings was approximately $6.0 million and $3.0 million , respectively. Of these amounts, $5.1 million and $2.1 million , respectively, are residential mortgage loans where the Company has the intent to convey the property to the respective government agency guaranteeing the loan. Upon foreclosure, a separate other receivable in the amount expected to be recovered from the guarantee will be recognized and reported as part of other miscellaneous assets in the accompanying Consolidated Balance Sheets. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Valuation Methodologies and Fair Value Hierarchy The primary financial instruments that the Company carries at fair value include investment securities available-for-sale, derivative financial instruments used to hedge the value of its mortgage pipeline and mortgage loans held for sale portfolio including Interest Rate Lock Commitments (“IRLCs”), and residential mortgage loans held-for-sale. Debt securities issued by U.S. Government corporations and agencies, debt securities issued by U.S. states and political subdivisions, and agency residential and commercial mortgage-backed securities classified as available-for-sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent third party pricing service. We have processes in place to evaluate such third party pricing services to ensure information obtained and valuation techniques are appropriate. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The investments in the Company’s portfolio are generally not quoted on an exchange but are actively traded in the secondary institutional markets. The fair value of mortgage loans held-for-sale is based on what secondary markets are currently offering for portfolios with similar characteristics. The fair value measurements consider observable data that may include market trade pricing from brokers and investors and the mortgage-backed security markets. As such, the Company classifies these loans as Level 2. The Company classifies IRLCs on residential mortgage loans held-for-sale, which are derivatives under ASC 815-10-15, on a gross basis within other assets or other liabilities. The fair value of these commitments, while based on interest rates observable in the market, is highly dependent on the ultimate closing of the loans. These “pull-through” rates are based on both the Company’s historical data and the current interest rate environment and reflect the Company’s best estimate of the likelihood that a commitment will ultimately result in a closed loan. The loan servicing value is also included in the fair value of IRLCs. Because these inputs are not transparent in market trades, IRLCs are considered to be Level 3 assets. Derivative financial instruments are primarily transacted in the secondary mortgage and institutional dealer markets and priced with observable market assumptions at a mid-market valuation point, with appropriate valuation adjustments for liquidity and credit risk. For purposes of valuation adjustments to its derivative positions, the Company has evaluated liquidity premiums that may be demanded by market participants, as well as the credit risk of its counterparties and its own credit if applicable. To date, no material losses due to a counterparty’s inability to pay any net uncollateralized position have occurred. Derivative financial instruments are considered to be Level 3. The credit risk associated with the underlying cash flows of an instrument carried at fair value was a consideration in estimating the fair value of certain financial instruments. Credit risk was considered in the valuation through a variety of inputs, as applicable, including, the actual default and loss severity of the collateral, and level of subordination. The assumption used to estimate credit risk applied relevant information that a market participant would likely use in valuing an instrument. Because mortgage loans held-for-sale are generally sold within several weeks of origination, they are unlikely to demonstrate any of the credit weaknesses discussed above and as a result, the amount of any credit related adjustments to fair value during the three months ended March 31, 2018, and 2017 , was insignificant. Recurring Fair Value Measurements The following tables present certain information regarding the financial assets measured at fair value on a recurring basis by level within the fair value hierarchy based on the inputs used to estimate the fair value at the measurement date. There were no transfers between Levels 1, 2, and 3, during the three months ended March 31, 2018 and 2017 . March 31, 2018 (in thousands) Total Fair Value Quoted Prices Significant Significant Investment securities available-for-sale $ 124,576 $ — $ 124,576 $ — Mortgage loans held-for-sale 355,515 — 355,515 — Other assets (1) 7,580 — — 7,580 Other liabilities (1) (1,641 ) — — (1,641 ) December 31, 2017 (in thousands) Total Fair Value Quoted Prices Significant Significant Investment securities available-for-sale $ 120,121 $ — $ 120,121 $ — Mortgage loans held-for-sale 269,140 — 269,140 — Other assets (1) 4,168 — — 4,168 Other liabilities (1) (691 ) — — (691 ) (1) Includes mortgage-related IRLCs and derivative financial instruments to hedge interest rate risk. IRLCs are recorded on a gross basis. The following table presents a reconciliation of all other assets and other liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2018, and 2017 . The changes in the fair value of economic hedges were recorded in noninterest income from mortgage banking activities in the Consolidated Statements of Comprehensive Income and are designed to partially offset the change in fair value of the derivative financial instruments referenced in the following table: As of or for the Three Months Ended March 31, 2018 2017 (in thousands) Other (1) Other (1) Other (1) Other (1) Beginning balance $ 4,168 $ (691 ) $ 7,111 $ (1,065 ) Total gains / (losses) included in earnings: Issuances 7,580 (1,641 ) 8,025 (2,349 ) Settlements and closed loans (4,168 ) 691 (7,238 ) 1,065 Expirations — — 127 — Ending balance $ 7,580 $ (1,641 ) $ 8,025 $ (2,349 ) (1) Includes mortgage-related IRLCs and derivative financial instruments entered to hedge interest rate risk Nonrecurring Fair Value Measurements Certain financial assets held by the Company are not included in the tables above, but are measured at fair value on a nonrecurring basis. The following tables present the assets that had changes in their recorded fair value and still held at the end of the reporting period by level within the fair value hierarchy based on the inputs used to estimate the fair value at the measurement date. March 31, 2018 (in thousands) Total Fair Value Quoted Prices Significant Significant Impaired loans $ 25,545 $ — $ — $ 25,545 ORE, net 359 — — 359 Residential mortgage servicing rights 38,991 — — 38,991 December 31, 2017 (in thousands) Total Fair Value Quoted Prices Significant Significant Impaired loans $ 23,257 $ — $ — $ 23,257 ORE, net 4,993 — — 4,993 Residential mortgage servicing rights 57,895 — — 57,895 SBA servicing rights 1,027 — — 1,027 Quantitative Information about Level 3 Fair Value Measurements The following table shows the valuation technique and range, including weighted average, of the significant unobservable inputs and assumptions used in the fair value measurement of the Company’s Level 3 assets and liabilities: Fair Value at ($ in thousands) March 31, 2018 December 31, 2017 Valuation Unobservable Range/Weighted Range/Weighted Nonrecurring: Impaired loans $ 25,545 $ 23,257 Appraised value Estimated 0% - 10.00% 0% - 10.00% Other real estate 359 4,993 Discounted appraisals Estimated 0% - 10.00% 0% - 10.00% Residential mortgage servicing rights 38,991 57,895 Discounted Discount rate 10.14% - 11.63% 9.64% - 11.13% Modeled prepayment 6.75% - 13.45% 7.60% - 15.75% SBA servicing rights — 1,027 Discounted Discount rate N/A 13.12% Modeled prepayment N/A 11.33% Recurring: IRLCs 6,497 3,439 Pricing Modeled pull-through 84.50% 84.50% Forward commitments (558 ) 38 Investor Pricing spreads 98.70% - 104.52% 90.00% - 104.94% The tables above exclude the initial measurement of assets and liabilities that were acquired as part of acquisitions accounted for as business combinations. These assets and liabilities were recorded at their fair value upon acquisition and were not remeasured during the periods presented unless specifically required by GAAP. Acquisition date fair values represent either Level 2 fair value measurements (investment securities, ORE, property, equipment and borrowings) or Level 3 fair value measurements (loans, deposits and core deposit intangible asset). Impaired loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or fair value less estimated selling costs. A loan is considered impaired if it is probable that the Company will be unable to collect all amounts contractually due according to the terms of the loan agreement. Measuring the impairment of loans using the present value of expected future cash flows, discounted at the loan’s effective interest rate, is not considered a fair value measurement. For collateral-dependent loans, fair value is measured based on the value of the collateral securing these loans and is classified as Level 3 in the fair value hierarchy. Collateral may include real estate or business assets, including equipment, inventory and accounts receivable. The value of real estate collateral is determined based on appraisals prepared by qualified licensed appraisers ordered by the Company’s internal appraisal department, which is independent of the Company’s lending function. If significant, the value of business equipment is based on an appraisal by qualified licensed appraisers ordered by the Company; otherwise, the equipment’s net book value on the business’s financial statements is the basis for the value of business equipment. Inventory and accounts receivable collateral are valued based on independent field examiner review or aging reports. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business. Impaired loans are evaluated on at least a quarterly basis for additional impairment and adjusted accordingly. Foreclosed assets are adjusted to fair value less estimated selling costs upon transfer of the loans to ORE, which becomes the new carrying value of the ORE. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value less estimated selling costs. Fair value is based on independent market prices, appraised values of the collateral, sales agreements, or management’s estimation of the value of the collateral using market data including recent sales activity for similar assets in the property’s market. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the foreclosed asset as nonrecurring Level 2. When an appraised value is not available or management determines there is no observable market price, the Company records the foreclosed asset as nonrecurring Level 3. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the property. Management continues to evaluate the appropriateness of appraised values on at least an annual basis. Mortgage and SBA servicing rights are initially recorded at fair value when loans are sold with servicing retained. These assets are then amortized in proportion to and over the period of estimated net servicing income. On at least a quarterly basis, these servicing assets are assessed for impairment based on fair value. Management uses a model operated and maintained by an independent third party to assist in determining fair value which stratifies the servicing portfolio into homogeneous subsets with unique behavior characteristics. The model then converts those characteristics into income and expense streams, adjusts those streams for estimated prepayments, present values the adjusted streams, and combines the present values into a total. If the cost basis of any loan stratification tranche is higher than the present value of the tranche, an impairment is recorded. Management periodically obtains an independent review of the valuation assumptions to validate the fair value estimate and the reasonableness of the assumptions used in measuring fair value. See Note 10 for additional disclosures related to assumptions used in the fair value calculation for mortgage and SBA servicing rights. Management makes certain estimates and assumptions related to costs to service varying types of loans and pools of loans, prepayment speeds, the projected lives of loans and pools of loans sold servicing retained, and discount factors used in calculating the present values of servicing fees projected to be received. Management periodically obtains an independent review of the valuation assumptions to validate the fair value estimate and the reasonableness of the assumptions used in measuring fair value. No less frequently than quarterly, management reviews the status of mortgage loans held-for-sale for which the fair value option has been elected and evaluates pools of servicing assets to determine if there is any impairment to those assets due to such factors as earlier than estimated repayments or significant prepayments. Any impairment identified in these servicing assets results in reductions in their carrying values through a valuation allowance and a corresponding decrease in servicing income. The significant unobservable input used in the fair value measurement of the Company’s IRLCs is the pull-through ratio, which represents the percentage of loans currently in a lock position which management estimates will ultimately close. Generally, the fair value of an IRLCs is positive (negative) if the prevailing interest rate is lower (higher) than the IRLCs rate. Therefore, an increase in the pull-through ratio (i.e., higher percentage of loans are estimated to close) will result in the fair value of the IRLCs increasing if in a gain position, or decreasing if in a loss position. The pull-through ratio is largely dependent on the processing stage that a loan is currently in and the change in prevailing interest rates from the time of the rate lock. The pull-through ratio is estimated based on calculations provided by the secondary marketing department using historical data. The estimated pull-through ratio is periodically reviewed by the Company’s Secondary Marketing Department of the Mortgage Banking Division for reasonableness. Forward commitments are instruments that are used to hedge the value of the IRLCs and mortgage loans held-for-sale. The Company takes investor commitments to sell a loan or pool of newly originated loans to an investor for an agreed upon price for delivery in the future. This type of forward commitment is also known as a mandatory commitment. Generally, the fair value of a forward commitment is negative (positive) if the prevailing interest rate is lower (higher) than the current commitment interest rate. The value of these commitments is ultimately determined by the investor that sold the commitment and represents a significant unobservable input used in the fair value measurement of the Company’s forward commitments. Fair Value Option The Company records mortgage loans held-for-sale at fair value. The Company chose to fair value these mortgage loans held-for-sale to align results with the underlying economic changes in value of the loans and related hedge instruments. Interest income on residential mortgage loans held-for-sale is recorded on an accrual basis in the Consolidated Statements of Comprehensive Income under the heading “Interest Income: Loans, including fees.” The servicing value is included in the fair value of the mortgage loans held-for-sale and initially recognized at the time the Company enters into IRLCs with borrowers. The mark-to-market adjustments related to loans held-for-sale and the associated economic hedges are reported as part of noninterest income from mortgage banking activities in the consolidated statements of comprehensive income. The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held-for-sale for which the fair value option (“FVO”) has been elected as of March 31, 2018 , and December 31, 2017 . The aggregate fair value of loans held-for-sale that were 90 days or more past due or in nonaccrual status at March 31, 2018 , was $165,000 with an unpaid principal balance of $177,000 , a difference of $12,000 in aggregate fair value under the unpaid principal balance. There were no loans held-for-sale that were 90 days or more past due or in nonaccrual status at December 31, 2017 . (in thousands) Aggregate Fair Value Aggregate Unpaid Aggregate Fair Value Over Residential mortgage loans held-for-sale $ 355,515 $ 348,797 $ 6,718 (in thousands) Aggregate Fair Value Aggregate Unpaid Aggregate Fair Value Over Residential mortgage loans held-for-sale $ 269,140 $ 262,315 $ 6,825 Net fair value (losses)/gains related to mortgage banking activities for items measured at fair value pursuant to election of FVO for the three months ended March 31, 2018, and 2017 , were $(107,000) and $3.3 million , respectively. Fair Value of Financial Instruments The estimated fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. In cases where quoted market prices for the Company’s various financial instruments are not available, fair values are based on settlements using present value or other valuation techniques. Those techniques are significantly affected by the imprecision in estimating unobservable inputs and the assumptions used, including the discount rate and estimates of future cash flows. While the Company believes its valuation methods are appropriate, 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 instruments. In that regard, the aggregate fair value amounts presented in the tables below do not represent the underlying value of the Company. The following tables include the carrying amount and estimated fair value, as well as the level within the fair value hierarchy, of the Company’s financial instruments. The fair value estimates presented are based upon relevant information available to management as of March 31, 2018 , and December 31, 2017 : Fair Value Measurements at March 31, 2018 (in thousands) Carrying Quoted Prices Significant Significant Total Fair Financial instruments (assets): Cash and cash equivalents $ 200,496 $ 200,496 $ — $ — $ 200,496 Investment securities available-for-sale 124,576 — 124,576 — 124,576 Investment securities held-to-maturity 21,342 — 16,970 3,977 20,947 Total loans, net (1) 4,108,668 — 355,515 3,499,485 3,855,000 Financial instruments (liabilities): Noninterest-bearing demand deposits $ 1,152,315 $ — $ — $ 1,152,315 $ 1,152,315 Interest-bearing deposits 2,748,092 — — 2,749,553 2,749,553 Short-term borrowings 337,795 — 337,795 — 337,795 Subordinated debt 120,620 — 112,610 — 112,610 Fair Value Measurements at December 31, 2017 (in thousands) Carrying Quoted Prices Significant Significant Total Fair Financial instruments (assets): Cash and cash equivalents $ 186,302 $ 186,302 $ — $ — $ 186,302 Investment securities available-for-sale 120,121 — 120,121 — 120,121 Investment securities held-to-maturity 21,689 — 17,684 4,001 21,685 Total loans, net (1) 3,908,949 — 269,140 3,466,839 3,735,979 Financial instruments (liabilities): Noninterest-bearing demand deposits $ 1,125,598 $ — $ — $ 1,125,598 $ 1,125,598 Interest-bearing deposits 2,741,602 — — 2,739,204 2,739,204 Short-term borrowings 150,580 — 150,580 — 150,580 Subordinated debt 120,587 — 114,402 — 114,402 (1) Includes $355,515 and $269,140 in residential mortgage loans held-for-sale at March 31, 2018 , and December 31, 2017 , respectively, for which the Company has elected FVO. The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents reasonably approximates the fair values of those assets. For investment securities, fair value equals quoted market prices, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities or dealer quotes. Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type. The fair value of performing loans is calculated by discounting scheduled cash flows through the remaining maturities using estimated market discount rates that reflect the credit and interest rate risk inherent in the loans along with a market risk premium and liquidity discount. Fair value for significant nonperforming loans is estimated taking into consideration recent external appraisals of the underlying collateral for loans that are collateral dependent. If appraisals are not available or if the loan is not collateral dependent, estimated cash flows are discounted using a rate commensurate with the risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows, and discount rates are judgmentally determined using available market information and specific borrower information. The fair value of deposits with no stated maturities, such as noninterest-bearing demand deposits, savings, interest-bearing demand, and money market accounts, is equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows based on the discount rates currently offered for deposits of similar remaining maturities. The fair value of the Company’s borrowings is estimated based on the quoted market price for the same or similar issued or on the current rates offered for debt of the same remaining maturities. For off-balance sheet instruments, fair values are based on rates currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing for loan commitments and letters of credit. Fees related to these instruments were immaterial at March 31, 2018 , and December 31, 2017 , and the carrying amounts represent a reasonable approximation of their fair values. Loan commitments, letters and lines of credit, and similar obligations typically have variable interest rates and clauses that deny funding if the customer’s credit quality deteriorates. Therefore, the fair values of these items are not significant and are not included in the foregoing schedule. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments to hedge the value of its mortgage pipeline and its mortgage loans held for sale. These instruments are not designated as hedges and are not speculative in nature. Gains/(losses) of $2.5 million and $(369,000) were recorded for the three months ended March 31, 2018, and 2017 , respectively, for all mortgage-related derivatives, and are included in the Consolidated Statements of Comprehensive Income as part of noninterest income from mortgage banking activities. Derivatives contracts 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. The notional amounts of the Company’s derivative positions at March 31, 2018 and December 31, 2017 were as follows: Contract or Notional Amount as of (in thousands) March 31, December 31, Forward rate commitments $ 653,027 $ 430,389 Interest rate lock commitments 323,116 172,293 Total derivatives contracts $ 976,143 $ 602,682 The Company’s derivative contracts are not subject to master netting arrangements. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Earnings per common share (“EPS”) were calculated as follows: Three Months Ended March 31, (in thousands, except per share ) 2018 2017 Net income $ 11,767 $ 10,527 Weighted average common shares outstanding - basic (1) 27,011 26,335 Effect of dilutive stock options (2) 110 142 Weighted average common shares outstanding – diluted 27,121 26,477 EPS: Basic $ 0.44 $ 0.40 Diluted $ 0.43 $ 0.40 (1) Includes participating securities related to unvested restricted stock awards, net of forfeitures during the period, if any (2) Effect of dilutive stock options includes the dilutive effect of additional potential common shares issuable under contracts outstanding during each respective period As of March 31, 2018 , there were 612,500 common stock options that were excluded as potentially dilutive. These shares were not included in the computation of diluted EPS because they were anti-dilutive in the period (i.e., the options’ exercise price was greater than the average market price of the common shares.) As of March 31, 2017 , there were no common stock options that were excluded as potentially dilutive. |
Certain Transfers of Financial
Certain Transfers of Financial Assets | 3 Months Ended |
Mar. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Certain Transfers of Financial Assets | Certain Transfers of Financial Assets Servicing rights The Company sells certain residential mortgage loans, SBA loans and indirect automobile loans to third parties. All such transfers are accounted for as sales and the continuing involvement in the loans sold is limited to certain servicing responsibilities. Loan servicing rights are initially recorded at fair value and subsequently recorded at the lower of cost or fair value and are amortized over the remaining service life of the loans, with consideration given to prepayment assumptions. The carrying value of the loan servicing rights assets is shown in the table below: (in thousands) March 31, 2018 December 31, 2017 Loan servicing rights Residential mortgage $ 107,943 $ 100,679 SBA 4,737 4,818 Indirect automobile 6,873 7,118 Total servicing rights $ 119,553 $ 112,615 Residential Mortgage Loans The Company typically sells certain first-lien residential mortgage loans to third party investors, primarily Fannie Mae, Ginnie Mae, and Freddie Mac. The Company retains the related mortgage servicing rights (“MSRs”) and receives servicing fees on certain of these loans. During the three months ended March 31, 2018, and 2017 , the Company sold $431.6 million and $496.9 million in residential mortgage loans, respectively, with servicing retained. The net gain on loan sales, MSRs amortization and recoveries/impairment, and ongoing servicing fees on the portfolio of loans serviced for others are recorded in the Consolidated Statements of Comprehensive Income as part of noninterest income from mortgage banking activities. During the three months ended March 31, 2018, and 2017 , the Company recorded gains on sales of residential mortgage loans of $17.6 million and $18.7 million , respectively. During the three months ended March 31, 2018, and 2017 , the Company recorded servicing fee income of $6.2 million and $5.3 million , respectively. Servicing fee income includes servicing fees, late fees and ancillary fees earned for each period. The table below is an analysis of the activity in the Company’s MSRs and impairment: For the Three Months Ended March 31, (in thousands) 2018 2017 Residential mortgage servicing rights Beginning carrying value, net $ 100,679 $ 86,131 Additions 6,146 6,425 Amortization (3,426 ) (3,158 ) Recoveries, net (1) 4,544 1,989 Ending carrying value, net $ 107,943 $ 91,387 (1) Principally reflects changes in market interest rates and prepayment speeds, both of which affect future cash flow projections For the Three Months Ended March 31, (in thousands) 2018 2017 Residential mortgage servicing impairment Beginning balance $ 9,818 $ 9,152 Additions — 57 Recoveries (4,544 ) (2,046 ) Ending balance $ 5,274 $ 7,163 The fair value of MSRs, key metrics, and the sensitivity of the fair value to adverse changes in model inputs and/or assumptions are summarized below: ($ in thousands) March 31, 2018 December 31, 2017 Residential Mortgage Servicing Rights Fair Value $ 113,237 $ 103,725 Composition of residential loans serviced for others: Fixed-rate 99.58 % 99.55 % Adjustable-rate 0.42 % 0.45 % Total 100.00 % 100.00 % Remaining term (years) 25.7 25.7 Modeled prepayment speed 6.94 % 8.19 % Decline in fair value due to a 10% adverse change $ (3,426 ) $ (3,497 ) Decline in fair value due to a 20% adverse change (6,610 ) (6,796 ) Weighted average discount rate 10.46 % 9.95 % Decline in fair value due to a 10% adverse change $ (5,154 ) $ (4,299 ) Decline in fair value due to a 20% adverse change (9,794 ) (8,223 ) As demonstrated in the table above, the Company’s methodology is highly sensitive to changes in model inputs and/or assumptions. The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in model inputs and/or assumptions generally cannot be extrapolated because the relationship of the change in input or assumption to the change in fair value may not be linear. In addition, the effect of an adverse variation in a particular input or assumption on the fair value of the MSRs is calculated without changing any other input or assumptions. In reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the effect of the change. Information about the asset quality of residential mortgage loans serviced by the Company is shown in the table below: Residential mortgage loans serviced March 31, 2018 Net Charge-offs Unpaid Delinquent (days) (in thousands) 30 to 89 90+ Serviced for others $ 9,098,508 $ 101,544 $ 7,046 $ — Held-for-sale (1) 348,797 255 177 — Held-for-investment (2) 511,476 12,012 20,397 — Total residential mortgage loans serviced $ 9,958,781 $ 113,811 $ 27,620 $ — (1) The fair value of the amount that was 90+ days past due was $109,000 after applicable discount recorded under the fair value option for mortgage loans held-for-sale. There were no applicable discounts for loans held-for-sale that were 30-89 days past due. (2) Delinquent loans held-for-investment include repurchased loans covered by government agency guarantees that were 30-89 days past due and 90+ days past due of $4,860 and $16,962 , respectively. Loans serviced for others are not included in the Consolidated Balance Sheets as they are not assets of the Company. Mortgage Recourse Liability During the last five years ended March 31, 2018 , the Company has sold approximately 49,100 loans with a principal balance of approximately $12.2 billion . Purchasers generally have recourse to return a sold loan to the Company under limited circumstances. As seller, the Company has made various representations and warranties related to, among other things, the ownership of the loans, the validity of the liens, the loan selection and origination process, and the compliance with origination criteria established by the purchasers. In the event of a breach of these representations and warranties, the Company is obligated to repurchase loans with identified defects and/or to indemnify the purchasers. Some of these conditions include underwriting errors or omissions, fraud or material misstatements, and invalid collateral values. The contractual obligation arises only when the breach of representations and warranties is discovered and repurchase/indemnification is demanded. Generally, the maximum amount the Company would be required to pay would be equal to the unpaid principal balance of such loans that are deemed to have defects that were sold to purchasers, plus accrued interest, return of the premium received at the time of the loan sale, and reimbursement of certain expenses. To date, the claims to the Company from the purchasers to be paid upon repurchase or paid because of indemnification have been insignificant. In addition, the Company’s loan sale contracts define a condition in which the borrower defaults during a short period of time as an early payment default (“EPD”). In the event of an EPD, the Company may be required to return the premium paid for the loan, pay certain administrative fees, and may be required to repurchase the loan or indemnify the purchaser unless an EPD waiver is obtained. The Company also makes a number of representations and warranties that it will service the originated loans in accordance with investor servicing guidelines and standards. Management recognizes the potential risk from costs related to breaches of representations and warranties made in connection with residential loan sales and subsequent required repurchases, indemnifications, and EPD claims. As a result, the Company has established a liability to cover potential costs related to these events based on historical experience, adjusted for any risk factors not captured in the historical losses, current business volume, and known claims outstanding. The recourse liability totaled $1.4 million at March 31, 2018 , and December 31, 2017 , respectively, and management believes this amount is adequate for potential exposure related to loan sale indemnification, repurchase loans, and EPD claims. There is a significant degree of judgment involved in estimating the recourse liability as the estimation process is inherently uncertain and subject to imprecision. Management will continue to monitor the adequacy of the reserve level and may decide that further additions to the reserve are appropriate in the future. However, there can be no assurance that the current balance of this reserve will prove sufficient to cover actual future losses. It should be noted that the Company’s historical loan sale activity began to increase at a time when underwriting requirements were strengthened from prior years and limited documentation conventional loans (i.e., non-government insured) were no longer eligible for purchase in the secondary market. Accordingly, the population of conventional loans the Company has sold has been underwritten based on fully documented information. While this does not eliminate all risk of repurchase or indemnification costs, management believes it significantly mitigates that risk. SBA Loans The Company customarily executes certain transfers of selected government loans to commercial borrowers, primarily SBA loans, with third parties in the secondary market. These loans, which are typically partially guaranteed by the SBA or otherwise credit enhanced, are generally secured by business property such as real estate, inventory, equipment, and accounts receivable. During the three months ended March 31, 2018, and 2017 , the Company sold $10.7 million and $14.0 million in SBA loans, respectively, with servicing retained. The Company retains the loan servicing rights and receives ongoing servicing fees on the portfolio of loans serviced for others. The net gain on SBA loan sales, amortization and recoveries/impairment of servicing rights, and ongoing servicing fees are recorded in the Consolidated Statements of Comprehensive Income as part of noninterest income from SBA lending activities. During the three months ended March 31, 2018, and 2017 , the Company recorded gains on sales of SBA loans of $586,000 and $1.2 million , respectively. During the three months ended March 31, 2018, and 2017 , the Company recorded servicing fee income of $571,000 and $621,000 , respectively. Servicing fee income includes servicing fees, late fees and ancillary fees earned for each period. The table below is an analysis of the activity in the Company’s SBA loan servicing rights and impairment: For the Three Months Ended March 31, (in thousands) 2018 2017 SBA loan servicing rights Beginning carrying value, net $ 4,818 $ 5,707 Additions 271 391 Amortization (483 ) (416 ) Recoveries / (impairment), net (1) 131 (20 ) Ending carrying value, net $ 4,737 $ 5,662 (1) Principally reflects changes in market interest rates and prepayment speeds, both of which affect future cash flow projections For the Three Months Ended March 31, (in thousands) 2018 2017 SBA servicing rights impairment Beginning balance $ 134 $ — Additions — 20 Recoveries (131 ) — Ending balance $ 3 $ 20 The fair value of the SBA loan servicing rights, key metrics, and the sensitivity of the fair value to adverse changes in the model inputs and/or assumptions are summarized below: ($ in thousands) March 31, 2018 December 31, 2017 SBA loan servicing rights Fair Value $ 4,923 $ 5,275 Composition of loans serviced for others: Fixed-rate — % — % Adjustable-rate 100.00 % 100.00 % Total 100.00 % 100.00 % Remaining term (years) 18.8 18.9 Modeled prepayment speed 11.33 % 11.33 % Decline in fair value due to a 10% adverse change $ (171 ) $ (181 ) Decline in fair value due to a 20% adverse change (332 ) (351 ) Weighted average discount rate 13.63 % 13.13 % Decline in fair value due to a 10% adverse change $ (195 ) $ (199 ) Decline in fair value due to a 20% adverse change (376 ) (384 ) As demonstrated in the table above, the Company’s methodology is highly sensitive to changes in model inputs and/or assumptions. The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in model inputs and/or assumptions generally cannot be extrapolated because the relationship of the change in input or assumption to the change in fair value may not be linear. In addition, the effect of an adverse variation in a particular input or assumption on the value of the SBA loan servicing rights is calculated without changing any other input or assumption. In reality, changes in one factor may magnify or counteract the effect of the change. Information about the asset quality of SBA loans serviced by the Company is shown in the table below: SBA loans serviced March 31, 2018 Net Charge-offs Unpaid Delinquent (days) (in thousands) 30 to 89 90+ Serviced for others $ 248,232 $ 14,642 $ 1,422 $ — Held-for-sale 19,785 — — — Held-for-investment 144,975 5,187 4,004 100 Total SBA loans serviced $ 412,992 $ 19,829 $ 5,426 $ 100 Loans serviced for others are not included in the Consolidated Balance Sheets as they are not assets of the Company. Indirect Automobile Loans The Company purchases, on a nonrecourse basis, consumer installment contracts secured by new and used vehicles purchased by consumers from franchised motor vehicle dealers and select independent dealers. A portion of the indirect automobile loans is sold with servicing retained and the Company receives ongoing servicing fees on the portfolio of loans serviced for others. During the three months ended March 31, 2018, and 2017 , the Company sold $86.0 million and $192.4 million in indirect automobile loans, respectively, with servicing retained. The gain on loan sales, amortization of servicing rights, and ongoing servicing fees are recorded in the Consolidated Statements of Comprehensive Income as part of noninterest income from indirect lending activities. During the three months ended March 31, 2018, and 2017 , the Company recorded gains on sales of indirect automobile loans of $1.0 million and $3.2 million , respectively. During the three months ended March 31, 2018, and 2017 , the Company recorded servicing fee income of $2.0 million , and $2.1 million , respectively. Servicing fee income includes servicing fees, late fees and ancillary fees earned for each period. The table below is an analysis of the activity in the Company’s indirect automobile loan servicing rights: For the Three Months Ended March 31, (in thousands) 2018 2017 Indirect automobile loan servicing rights Beginning carrying value $ 7,118 $ 7,457 Additions 569 1,403 Amortization (814 ) (870 ) Ending carrying value $ 6,873 $ 7,990 The Company has not recorded impairment on its indirect automobile loan servicing rights. The fair value of the indirect automobile loan servicing rights, key metrics, and the sensitivity of the fair value to adverse changes in model inputs and/or assumptions are summarized below: ($ in thousands) March 31, 2018 December 31, 2017 Indirect automobile loan servicing rights Fair value $ 6,961 $ 7,436 Composition of loans serviced for others: Fixed-rate 100.00 % 100.00 % Adjustable-rate — % — % Total 100.00 % 100.00 % Remaining term (years) 4.4 4.5 Modeled prepayment speed 20.59 % 20.59 % Decline in fair value due to a 10% adverse change $ (174 ) $ (192 ) Decline in fair value due to a 20% adverse change (343 ) (377 ) Weighted average discount rate 7.72 % 7.18 % Decline in fair value due to a 10% adverse change $ (67 ) $ (69 ) Decline in fair value due to a 20% adverse change (133 ) (137 ) As demonstrated in the table above, the Company’s methodology is highly sensitive to changes in model inputs and/or assumptions. The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in model inputs and/or assumptions generally cannot be extrapolated because the relationship of the change in input or assumption to the change in fair value may not be linear. In addition, the effect of an adverse variation in a particular input or assumption on the fair value of the indirect automobile loan servicing rights is calculated without changing any other input or assumption. In reality, changes in one factor may magnify or counteract the effect of the change. Information about the asset quality of the indirect automobile loans serviced by the Company is shown in the table below: March 31, 2018 Net Charge-offs Indirect automobile loans serviced Unpaid Delinquent (days) (in thousands) 30 to 89 90+ Serviced for others $ 1,018,743 $ 2,075 $ 2,756 $ 1,128 Held-for-sale 50,000 — — — Held-for-investment 1,719,670 3,292 3,187 1,147 Total indirect automobile loans serviced $ 2,788,413 $ 5,367 $ 5,943 $ 2,275 Loans serviced for others are not included in the Consolidated Balance Sheets as they are not assets of the Company. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09, “ Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. As stated in Note 1. Basis of Presentation and Summary of Significant Accounting Policies , the implementation of the new guidance did not have a material impact on the measurement or recognition of revenue. The Company did not record a cumulative effect adjustment to opening retained earnings. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with our servicing rights activities, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges on deposit accounts fees is mainly composed of maintenance fees, service fees, stop payment fees, and non-sufficient funds ("NSF") fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Debit Card Fees, Credit Card Fees, and Merchant Fees Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily derived from interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company's card-holder uses a non-Company ATM or a non-Company card-holder uses the Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and/or credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Trust and Wealth Management Trust and wealth management income is primarily comprised of fees earned from personal trust administration, estate settlement, investment management, employee benefit plan administration, custody, United States tax code sections 1031/1033 exchanges ("Sections 1031/1033 exchanges") and escrow accounts. Personal trust administration, investment management, employee benefit plan administration and custody fees are generally earned/accrued monthly with billings typically done monthly, and are based on the assets/trust under management or administration and services with certain annual minimum fees provided as outlined in the applicable fee schedule. Sections 1031/1033 exchanges and escrow accounts fees are based on a contractual agreement. The Company’s fiduciary obligations are generally satisfied over time and the resulting fees are recognized monthly, based upon the monthly average market value of the assets under management and the applicable fee rate. Payment is typically received in the following month. The Company does not earn performance-based incentives. Insurance Commissions The Company earns insurance commissions through LionMark Insurance Company, Inc., a wholly owned subsidiary that markets credit loss protection insurance products on an agency basis. The contract between the Company and the Agent is primarily for vendor single interest coverage (“VSI insurance”) and does not involve goods or services that are distinct in nature. The performance obligation is essentially completed upon the sale of the individual VSI insurance contracts. Gain or Loss of ORE The Company recognizes the sale of ORE, along with any associated gain or loss, when control of the property transfers to the buyer. Generally, the standard includes the following indicators that control of a promised asset has been transferred: ▪ The seller has a present right to payment for the asset. ▪ The buyer has legal title of the asset. ▪ The seller has transferred physical possession of the asset. ▪ The buyer has the significant risks and rewards of ownership of the asset. ▪ The buyer has accepted the asset. The Company at times may finance an ORE sale and will need to apply judgment in evaluating, at contract inception, whether the contract conditions are met, including whether it is probable that the Company shall collect substantially all of the entitled consideration by assessing both the buyer’s intent and ability (i.e., capacity) to pay substantially all the amount to which the Company is entitled. The Company enhanced its ORE internal business operating procedures to ensure that such financed ORE sale gain or loss is recognized once all the new standard requirements are met. The following table presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2018, and 2017 : Three Months Ended March 31, ($ in thousands) 2018 2017 Noninterest Income In-scope of Topic 606: Service charges on deposit accounts $ 1,472 $ 1,455 Other fees and charges 2,035 1,791 Trust and wealth management 532 288 Other: Insurance commissions 398 300 Gain (loss) on ORE — 301 Total Other $ 398 $ 601 Noninterest income (in-scope of Topic 606) 4,437 4,135 Noninterest income (out-of-scope of Topic 606) 32,696 33,235 Total noninterest income $ 37,133 $ 37,370 Contract Balances Typically, a contract asset balance occurs when an entity performs a service for a customer before the customer payment of consideration, creating a contract receivable, or before payment is due, creating in a contract asset. On the other hand, a contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment of consideration from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees, and insurance commissions based on the terms and conditions of the associated contracts. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of March 31, 2018 , and December 31, 2017 , the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. The Company did not capitalize any contract acquisition costs upon adoption of Topic 606. |
Basis of Presentation and Sum19
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Consolidation | The accompanying unaudited consolidated financial statements include the accounts of Fidelity Southern Corporation (“FSC” or “Fidelity”) and its wholly-owned subsidiaries. FSC owns 100% of Fidelity Bank (the “Bank”) and LionMark Insurance Company, an insurance agency offering consumer credit related insurance products. FSC also owns three subsidiaries established to issue trust preferred securities, which are not consolidated for financial reporting purposes in accordance with current accounting guidance, as FSC is not the primary beneficiary. The “Company” or “our,” as used herein, includes FSC and its consolidated subsidiaries, unless the context otherwise requires. |
Basis of Accounting | These unaudited consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) followed within the financial services industry for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information or notes required for complete financial statements. |
Use of Estimates | In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the periods presented. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses; the calculations of, amortization of, and the potential impairment of capitalized servicing rights; the valuation of loans held-for-sale and certain derivatives; the valuation of real estate or other assets acquired in connection with foreclosures or in satisfaction of loans; estimates used for fair value acquisition accounting, goodwill impairment testing and valuation of deferred income taxes. In addition, the actual lives of certain amortizable assets and income items are estimates subject to change. |
Contingencies | Contingencies Due to the nature of their activities, the Company and its subsidiaries are at times engaged in various legal proceedings that arise in the course of normal business, some of which were outstanding as of March 31, 2018 . Although the ultimate outcome of all claims and lawsuits outstanding as of March 31, 2018 cannot be ascertained at this time, it is the opinion of management that these matters, when resolved, will not have a material adverse effect on the Company’s results of operations or financial condition. |
Recent Accounting Pronouncements | In February 2018, the FASB issued ASU No. 2018-02, “ Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” ("ASU 2018-02"), that allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act that passed U.S. Congress in December 2017. The amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement-Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income. The amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. These amendments should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company elected to early adopt this guidance effective January 1, 2018. The adoption of ASU 2018-02 resulted in a reclassification of stranded tax effects of $80,000 to accumulated other comprehensive income (loss) from retained earnings. In May 2017, the FASB issued ASU No. 2017-09, “ Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, ” (“ASU 2017-09”) that provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Under the new guidance, an entity should not account for the effect of a modification if all of the following conditions are met. These conditions are: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this ASU. The amendments in this ASU affect any entity that changes the terms or conditions of a share-based payment award and are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption was permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued and should be applied prospectively to an award modified on or after the adoption date. The adoption of this ASU effective January 1, 2018 did not have a significant impact on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ,” (“ASU 2017-07”) that will change how employers who sponsor defined benefit pension and/or other postretirement benefit plans present the net periodic benefit cost in the income statement. Employers will be required to present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. The other components of the net periodic benefit cost will be presented separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. Employers will be required to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement. The guidance on the presentation of the components of net periodic benefit cost in the income statement will be applied retrospectively while the guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component will be applied prospectively. Employers will have to provide the relevant disclosures required under ASC 250, Accounting Changes and Error Corrections, in the first interim and annual periods when they adopt the guidance. The guidance also provides a practical expedient for disaggregating the service cost component and other components for comparative periods. An employer that elects to apply the practical expedient must disclose the reason for doing so and other qualitative information about the capitalization of net periodic benefit cost. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods therein. Early adoption was permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. That is, early adoption must be within the first interim period if an employer issues interim financial statements. The adoption of this ASU effective January 1, 2018 did not have a significant impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, “ Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ,” (“ASU 2017-04”) which simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test. Under Step 2, an entity was required to determine the fair value of individual assets and liabilities of a reporting unit (including unrecognized assets and liabilities) using the procedure for determining fair values in a business combination. Under the new guidance, goodwill impairment will be measured at the amount by which a reporting unit’s carrying amount, including those with a zero or negative carrying amount, exceeds its fair value. Any resulting impairment is limited to the carrying amount of goodwill. An entity must also disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount. The new guidance is effective for public business entities for fiscal years beginning after December 15, 2019, and is required to be applied prospectively with early adoption permitted for any impairment tests performed on testing dates after January 1, 2017. The early adoption of this ASU in the fourth quarter of 2017 did not have a significant impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-03, “ Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323), ” (“ASU 2017-03”). ASU 2017-03 amends the Codification for SEC staff announcements made at two Emerging Issues Task Force (EITF) meetings. At the September 2016 meeting, the SEC staff expressed its expectations about the extent of disclosures registrants should make about the effects of the new FASB guidance (including any amendments issued prior to adoption) on revenue from the new FASB guidance (ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606), ” (“ASU 2014-09”)), leases, (ASU No. 2016-02, “Leases,” (“ASU 2016-02”)), and credit losses on financial instruments (ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, ” (“ASU 2016-13”)), in accordance with SAB Topic 11.M. That Topic required registrants to disclose the effect that recently issued accounting standards will have on their financial statements when adopted in a future period. ASU 2017-03 incorporated these SEC staff views into ASC 250 and added references to that guidance in the transition paragraphs of each of the three new standards. The Company adopted this guidance in the fourth quarter of 2016. The adoption of this ASU did not have a significant impact on the Company’s Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-01, “ Business Combinations (Topic 805) - Clarifying the Definition of a Business,” (“ASU 2017-01”) which provides clarification on the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in ASU 2017-01 provide a screen to determine when an asset is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the asset is not a business. This screen reduces the number of transactions that need to be further evaluated, and therefore are considered businesses. The amendments also provide a framework to assist entities in evaluating whether both an input and a substantive process are present. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods. Early adoption was permitted. The amendments in this ASU should be applied prospectively on or after the effective date and no disclosures are required at transition. The adoption of this ASU effective January 1, 2018 did not have a significant impact on the Company’s Consolidated Financial Statements. In December 2016, the FASB issued ASU No. 2016-20, “ Technical Corrections and Improvements to Topic 606: Revenue from Contracts with Customers. ” ASU 2016-20 updates the new revenue standard by clarifying issues that had arisen from ASU No. 2014-09 but does not change the core principle of the new standard. In August 2015, the FASB issued ASU No. 2015-14, “ Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date ” which deferred the effective date of ASU No. 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”) by one year to annual reporting periods beginning after December 15, 2017, and interim reporting periods therein. The FASB had previously issued ASU 2014-09 in May 2014. ASU 2014-09 requires that entities recognize revenue to reflect the transfers of goods or services to customers in an amount equal to the consideration the entity receives or expects to receive. The Company’s revenue is comprised of net interest income and noninterest income. As ASU 2014-09 does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, net interest income, noninterest income from mortgage origination and servicing activities, and gain and losses from securities transactions are specifically excluded from the scope of the guidance. The Company adopted the guidance on January 1, 2018 utilizing the modified retrospective approach. The Company did not record a cumulative effect adjustment to opening retained earnings as the adoption of ASU 2014-09 did not have a significant impact on the Company's Consolidated Financial Statements. The Company also completed its evaluation of the expanded disclosure requirements for disaggregation of revenue and other information regarding material contracts and began presenting the required disclosures in its Consolidated Financial Statements for the quarter ended March 31, 2018. See Note 11. Revenue Recognition for more information. In November 2016, the FASB issued ASU No. 2016-18, “ Statement of Cash Flows (Topic 230) — Restricted Cash ,” (“ASU 2016-18”). The amendments in this ASU require that the statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The ASU is to be applied retrospectively and is effective for the Company beginning in fiscal 2018, including interim periods therein. Early adoption was permitted, including adoption in an interim period, with retrospective application. The adoption of this ASU effective January 1, 2018 did not have a significant impact on the Company’s Consolidated Financial Statements. In October 2016, the FASB issued ASU No. 2016-16, “ Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory, ” (“ASU 2016-16”). This guidance addresses the income tax consequences of intra-entity transfers of assets other than inventory. GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. In addition, interpretations of this guidance have developed in practice over the years for transfers of certain intangible and tangible assets. The amendments in the update will require recognition of current and deferred income taxes resulting from an intra-entity transfer of an asset other than inventory when the transfer occurs. This standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The amendments in this ASU should be applied using a modified retrospective approach through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption was permitted as of the beginning of an annual reporting period for which financial statements have not been issued or made available for issuance. The adoption of this ASU effective January 1, 2018 did not have a significant impact on the Company’s Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, ” (“ASU 2016-15”) intended to reduce diversity in practice in how certain cash receipts and cash payments are classified in the statement of cash flows. The guidance addresses eight issues: (1) cash payments for debt prepayment or debt extinguishment costs; (2) cash payments for the settlement of zero-coupon debt instruments; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance (“COLI”) policies, including bank-owned life insurance (“BOLI”) policies; (6) distributions received from equity method investments; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows using the application of the predominance principle, whereby an entity should classify each separately identifiable cash source and use on the basis of the nature of the underlying cash flows. The amendments in this ASU are to be applied retrospectively and are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption was permitted, including adoption in an interim period, with adoption of all of the guidance in the same period. The adoption of this ASU effective January 1, 2018 did not have a significant impact on the Company’s Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2017, the FASB issued ASU No. 2017-12, “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ,” (“ASU 2017-12”) that is intended to improve and simplify rules relevant to hedge accounting. This ASU refines and expands hedge accounting for both financial (e.g., interest rate) and commodity risks. ASU 2017-12 is intended to improve transparency and accounting through a focus on: (1) measurement and hedging strategies; (2) presentation and disclosure; and (3) easing the administrative burden that hedge accounting can create for an entity. Entities will (a) measure the hedged item in a partial-term fair value hedge of interest rate risk by assuming the hedged item has a term that reflects only the designated cash flows being hedged; (b) consider only how changes in the benchmark interest rate affect a decision to settle a pre-payable instrument before its scheduled maturity when calculating the fair value of the hedged item; and (c) measure the fair value of the hedged item using the benchmark rate component of the contracted coupon cash flows determined at inception. The amendments in this ASU shall take effect for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted in any interim period or fiscal years before the effective date of the standard. The adoption of this ASU is not expected to have a significant impact on the Company’s Consolidated Financial Statements based on its current hedging strategies. However, the Company is currently evaluating this ASU to determine whether its provisions will enhance its risk management strategies. In March 2017, the FASB issued ASU No. 2017-08, “ Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities ,” (“ASU 2017-08”) that amends the amortization period for certain purchased callable debt securities held at a premium. Under GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. The ASU shortens the amortization period for the premium to the earliest call date. This amendment affects all entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date, i.e., at a premium. The guidance is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. These amendments should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the adoption period. In addition, in the period of adoption, disclosures should be provided about a change in accounting principle. The adoption of this ASU is not expected to have a significant impact on the Company’s Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13 which significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. In issuing the standard, the FASB is responding to criticism that today’s guidance delays recognition of credit losses. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) securities. For AFS securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. All other things being equal, higher credit losses will result in lower regulatory capital ratios for the Company. The ASU also simplifies the accounting model for purchased credit-impaired securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. The standard will take effect for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application for all organizations will be permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company has established a working group which includes representatives from various internal departments with the expertise needed to implement the guidance. As part of its implementation plan, the Company has allocated staff and put resources in place to evaluate the appropriate model options and is collecting, reviewing, and validating ten years of historical loan data for use in these models. The Company is also implementing a software package supported by a third-party vendor to automate the calculation of the allowance for loan losses under the new methodology. Management is continuing to evaluate the impact that the guidance will have on the Company’s Consolidated Financial Statements and its regulatory capital ratios through its effective date. In February 2016, the FASB issued No. ASU 2016-02, " Leases " which requires the recognition of assets and liabilities arising from most lease transactions on the balance sheet and the disclosure of key information about leasing arrangements. Accordingly, a lessee will recognize a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. Both the asset and liability will initially be measured at the present value of the future minimum lease payments over the lease term. Subsequent measurement, including the presentation of expenses and cash flows, will depend on the classification of the lease as either a finance or an operating lease. Expense for an operating lease will continue to be reported on a straight-line basis over the lease term, whereas the expense for a finance lease will follow a financing model (amortization of the asset and interest on the lease liability). Initial costs directly attributable to negotiating and arranging the lease will be included in the asset. The new guidance also introduces the requirement for periodic impairment testing of the right-of-use asset as a long-lived asset. For leases with a term of 12 months or less, a lessee can make an accounting policy election by class of underlying asset to not recognize an asset and corresponding liability. Lessees will also be required to provide additional qualitative and quantitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. These disclosures are intended to supplement the amounts recorded in the financial statements and provide additional information about the nature of an organization’s leasing activities. The new standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. In transition, lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, which means applying the new balance sheet presentation and income statement classification guidance from the beginning of the earliest comparative period presented in the year of adoption. The transition guidance also provides specific guidance for sale and leaseback transactions, build-to-suit leases and amounts previously recognized in accordance with the business combinations guidance for leases. The total outstanding lease obligations, all of which are classified as operating leases, was $20.4 million , or 0.42% of total assets as of March 31, 2018 . The Company is currently evaluating these lease obligations, as well as any embedded leases contained in its contractual outsourcing arrangements, as potential lease assets and liabilities as defined by the guidance as well as assessing the impact on its regulatory capital ratios. For regulated banking institutions such as the Company, the recognition of right-of-use assets on the balance sheet may impact the calculation of regulatory capital ratios by increasing the assets in the denominator of the risk-based capital ratios (risk-weighted assets) and leverage capital ratio (adjusted asset). All other things being equal, a higher denominator will result in lower regulatory capital ratios for the Company. The Company anticipates that the adoption of ASU 2016-02 will not have a significant impact on its Consolidated Financial Statements or its regulatory capital ratios, but will likely require changes to its systems, controls and processes. The Company is continuing to evaluate the full impact of this ASU on the Company’s Consolidated Financial Statements. Other proposed accounting standards that have recently been issued by the FASB or other standard-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Fair Value of Available-for-Sale Debt Securities | The following table summarizes the amortized cost and fair value of debt securities and the related gross unrealized gains and losses at March 31, 2018 , and December 31, 2017 : March 31, 2018 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investment securities available-for-sale: Obligations of U.S. Government sponsored enterprises $ 22,173 $ 58 $ (275 ) $ 21,956 Municipal securities 9,302 232 (42 ) 9,492 SBA pool securities 12,148 — (396 ) 11,752 Residential mortgage-backed securities 57,664 577 (262 ) 57,979 Commercial mortgage-backed securities 24,130 — (733 ) 23,397 Total available-for-sale $ 125,417 $ 867 $ (1,708 ) $ 124,576 Investment securities held-to-maturity: Municipal securities $ 8,581 $ 17 $ (155 ) $ 8,443 Residential mortgage-backed securities 8,784 83 (340 ) 8,527 Commercial mortgage-backed securities 3,977 — — 3,977 Total held-to-maturity $ 21,342 $ 100 $ (495 ) $ 20,947 December 31, 2017 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investment securities available-for-sale: Obligations of U.S. Government sponsored enterprises $ 22,182 $ 141 $ (98 ) $ 22,225 Municipal securities 9,318 340 (23 ) 9,635 SBA pool securities 13,031 6 (127 ) 12,910 Residential mortgage-backed securities 50,251 803 (76 ) 50,978 Commercial mortgage-backed securities 24,721 6 (354 ) 24,373 Total available-for-sale $ 119,503 $ 1,296 $ (678 ) $ 120,121 Investment securities held-to-maturity: Municipal securities $ 8,588 $ 53 $ — $ 8,641 Residential mortgage-backed securities 9,100 99 (156 ) 9,043 Commercial mortgage-backed securities 4,001 — — 4,001 Total held-to-maturity $ 21,689 $ 152 $ (156 ) $ 21,685 |
Summary of Amortized Cost and Fair Value of Held-to-Maturity Debt Securities | The following table summarizes the amortized cost and fair value of debt securities and the related gross unrealized gains and losses at March 31, 2018 , and December 31, 2017 : March 31, 2018 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investment securities available-for-sale: Obligations of U.S. Government sponsored enterprises $ 22,173 $ 58 $ (275 ) $ 21,956 Municipal securities 9,302 232 (42 ) 9,492 SBA pool securities 12,148 — (396 ) 11,752 Residential mortgage-backed securities 57,664 577 (262 ) 57,979 Commercial mortgage-backed securities 24,130 — (733 ) 23,397 Total available-for-sale $ 125,417 $ 867 $ (1,708 ) $ 124,576 Investment securities held-to-maturity: Municipal securities $ 8,581 $ 17 $ (155 ) $ 8,443 Residential mortgage-backed securities 8,784 83 (340 ) 8,527 Commercial mortgage-backed securities 3,977 — — 3,977 Total held-to-maturity $ 21,342 $ 100 $ (495 ) $ 20,947 December 31, 2017 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investment securities available-for-sale: Obligations of U.S. Government sponsored enterprises $ 22,182 $ 141 $ (98 ) $ 22,225 Municipal securities 9,318 340 (23 ) 9,635 SBA pool securities 13,031 6 (127 ) 12,910 Residential mortgage-backed securities 50,251 803 (76 ) 50,978 Commercial mortgage-backed securities 24,721 6 (354 ) 24,373 Total available-for-sale $ 119,503 $ 1,296 $ (678 ) $ 120,121 Investment securities held-to-maturity: Municipal securities $ 8,588 $ 53 $ — $ 8,641 Residential mortgage-backed securities 9,100 99 (156 ) 9,043 Commercial mortgage-backed securities 4,001 — — 4,001 Total held-to-maturity $ 21,689 $ 152 $ (156 ) $ 21,685 |
Gross Unrealized Losses and Fair Values of Investment Securities | The following table reflects the gross unrealized losses and fair values of the investment securities with unrealized losses, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position: March 31, 2018 Less Than 12 Months 12 Months or Longer (in thousands) Fair Gross Unrealized Fair Gross Unrealized Investment securities available-for-sale: Obligations of U.S. Government sponsored enterprises $ 19,796 $ (275 ) $ — $ — Municipal securities $ 1,808 $ (8 ) $ 1,034 $ (34 ) SBA pool securities 7,106 (207 ) 4,646 (189 ) Residential mortgage-backed securities 10,968 (92 ) 4,998 (170 ) Commercial mortgage-backed securities 11,785 (261 ) 11,610 (472 ) Total available-for-sale $ 51,463 $ (843 ) $ 22,288 $ (865 ) Investment securities held-to-maturity: Municipal securities $ 6,838 $ (155 ) $ — $ — Residential mortgage-backed securities $ — $ — $ 7,248 $ (340 ) Total held-to-maturity $ 6,838 $ (155 ) $ 7,248 $ (340 ) December 31, 2017 Less Than 12 Months 12 Months or Longer (in thousands) Fair Gross Unrealized Fair Gross Unrealized Investment securities available-for-sale: Obligations of U.S. Government sponsored enterprises $ 14,974 $ (98 ) $ — $ — Municipal securities — — 1,050 (23 ) SBA pool securities 3,285 (42 ) 4,979 (85 ) Residential mortgage-backed securities 1,835 (8 ) 5,383 (68 ) Commercial mortgage-backed securities 10,051 (89 ) 12,360 (265 ) Total available-for-sale $ 30,145 $ (237 ) $ 23,772 $ (441 ) Investment securities held-to-maturity: Residential mortgage-backed securities — — 7,652 (156 ) Total held-to-maturity $ — $ — $ 7,652 $ (156 ) |
Amortized Cost and Fair Value of Investment Securities | The amortized cost and fair value of investment securities at March 31, 2018 , and December 31, 2017 , are categorized in the following table by remaining contractual maturity. The amortized cost and fair value of securities not due at a single maturity (i.e., mortgage-backed securities) are shown separately and are calculated based on estimated average remaining life: March 31, 2018 December 31, 2017 (in thousands) Amortized Fair Amortized Fair Investment securities available-for-sale: Obligations of U.S. Government sponsored enterprises Due after one year through five years $ 21,170 $ 20,913 $ 21,179 $ 21,160 Due after five years through ten years 1,003 1,043 1,003 1,065 Municipal securities Due after one year through five years 1,498 1,468 1,503 1,488 Due after five years through ten years 2,750 2,837 2,753 2,877 Due after ten years 5,054 5,187 5,062 5,270 SBA pool securities Due after five years through ten years 7,313 7,106 7,967 7,931 Due after ten years 4,835 4,646 5,064 4,979 Residential mortgage-backed securities 57,664 57,979 50,251 50,978 Commercial mortgage-backed securities 24,130 23,397 24,721 24,373 Total available-for-sale $ 125,417 $ 124,576 $ 119,503 $ 120,121 Investment securities held-to-maturity: Municipal securities Due after five years through ten years $ 1,588 $ 1,604 $ 1,588 $ 1,641 Due after ten years 6,993 6,839 7,000 7,000 Residential mortgage-backed securities 8,784 8,527 9,100 9,043 Commercial mortgage-backed securities 3,977 3,977 4,001 4,001 Total held-to-maturity $ 21,342 $ 20,947 $ 21,689 $ 21,685 |
Summary of Investment Securities Pledged as Collateral | The following table summarizes the investment securities that were pledged as collateral at March 31, 2018 , and December 31, 2017 : (in thousands) March 31, 2018 December 31, 2017 Public deposits $ 62,844 $ 60,415 Securities sold under repurchase agreements 25,551 19,485 Total pledged securities $ 88,395 $ 79,900 |
Loans Held-for-Sale (Tables)
Loans Held-for-Sale (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Summary of Loans Held-for-Sale | The following table summarizes loans held-for-sale at March 31, 2018 , and December 31, 2017 : (in thousands) March 31, 2018 December 31, 2017 Residential mortgage $ 355,515 $ 269,140 SBA 19,785 13,615 Indirect automobile 50,000 75,000 Total loans held-for-sale $ 425,300 $ 357,755 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans Outstanding, by Class | March 31, 2018 Loans (in thousands) Legacy Acquired Total Commercial $ 771,820 $ 125,477 $ 897,297 SBA 132,439 7,869 140,308 Total commercial loans 904,259 133,346 1,037,605 Construction 261,700 4,080 265,780 Indirect automobile 1,719,670 — 1,719,670 Installment loans and personal lines of credit 27,267 1,449 28,716 Total consumer loans 1,746,937 1,449 1,748,386 Residential mortgage 489,118 23,555 512,673 Home equity lines of credit 133,798 16,066 149,864 Total mortgage loans 622,916 39,621 662,537 Total loans $ 3,535,812 $ 178,496 $ 3,714,308 December 31, 2017 Loans (in thousands) Legacy Acquired Total Commercial $ 675,544 $ 135,655 $ 811,199 SBA 133,186 8,022 141,208 Total commercial loans 808,730 143,677 952,407 Construction 243,112 5,205 248,317 Indirect automobile 1,716,156 — 1,716,156 Installment loans and personal lines of credit 24,158 1,837 25,995 Total consumer loans 1,740,314 1,837 1,742,151 Residential mortgage 461,194 28,527 489,721 Home equity lines of credit 131,049 17,321 148,370 Total mortgage loans 592,243 45,848 638,091 Total loans $ 3,384,399 $ 196,567 $ 3,580,966 |
Loans in Nonaccrual Status, by Class | Loans in nonaccrual status are presented by class of loans in the following table. The Company has repurchased certain Government National Mortgage Association (“GNMA”) government-guaranteed loans, which are accounted for in nonaccrual status. The Company’s loss exposure on government-guaranteed loans is mitigated by the government guarantee in whole or in part. Purchased credit impaired (“PCI”) loans are considered to be performing due to the application of the accretion method and are excluded from the table. (in thousands) March 31, 2018 December 31, 2017 Commercial $ 13,270 $ 11,314 SBA 4,592 2,503 Total commercial loans 17,862 13,817 Construction 4,338 4,520 Indirect automobile 1,535 1,912 Installment loans and personal lines of credit 436 440 Total consumer loans 1,971 2,352 Residential mortgage 30,650 23,169 Home equity lines of credit 3,885 3,154 Total mortgage loans 34,535 26,323 Total nonaccrual loans $ 58,706 $ 47,012 |
Accruing Delinquent Loans and Troubled Debt Restructurings | Accruing loans delinquent 30 - 89 days, 90 days or more, and troubled debt restructured loans (“TDRs”) accruing interest, including PCI loans, presented by class of loans at March 31, 2018 , and December 31, 2017 , were as follows: March 31, 2018 December 31, 2017 (in thousands) Accruing Accruing TDRs Accruing Accruing TDRs Commercial $ 927 $ 7,257 $ 8,404 $ 3,821 $ 5,722 $ 8,468 SBA 4,417 63 1,446 5,560 70 3,800 Construction 286 48 — — 102 — Indirect automobile 2,257 — 2,132 3,971 87 1,960 Installment and personal lines of credit 247 — 30 449 — 33 Residential mortgage 6,581 347 395 7,447 268 495 Home equity lines of credit 980 13 53 831 64 51 Total $ 15,695 $ 7,728 $ 12,460 $ 22,079 $ 6,313 $ 14,807 |
Loans Held-for-Investment Pledged as Collateral | Presented in the following table is the unpaid principal balance of loans held for investment that were pledged to the Federal Home Loan Bank of Atlanta (“FHLB of Atlanta”) as collateral for borrowings under a blanket lien arrangement at March 31, 2018 , and December 31, 2017 : (in thousands) March 31, 2018 December 31, 2017 Commercial $ 248,844 $ 242,695 Home equity lines of credit 104,575 94,526 Residential mortgage 388,538 351,591 Total $ 741,957 $ 688,812 |
Impaired Legacy Loans and Acquired Non-PCI Loans | The following tables present by class the unpaid principal balance, recorded investment and related allowance for impaired legacy loans and acquired non PCI loans at March 31, 2018 , and December 31, 2017 . Legacy impaired loans include all TDRs and all other nonaccrual loans, excluding nonaccrual loans below the Company’s specific review threshold: March 31, 2018 December 31, 2017 (in thousands) Unpaid Recorded (1) Related Unpaid Recorded (1) Related Impaired Loans with Allowance Commercial $ 18,488 $ 17,634 $ 1,671 $ 11,877 $ 11,824 $ 839 SBA 3,637 2,753 259 6,634 5,664 294 Construction — — — — — — Installment and personal lines of credit 336 283 214 343 290 219 Residential mortgage 5,107 5,058 612 4,838 4,799 616 Home equity lines of credit 1,539 1,416 728 831 745 633 Loans $ 29,107 $ 27,144 $ 3,484 $ 24,523 $ 23,322 $ 2,601 March 31, 2018 December 31, 2017 (in thousands) Unpaid Recorded (1) Unpaid Recorded (1) Impaired Loans with No Allowance Commercial $ 8,265 $ 6,705 $ 14,839 $ 12,509 SBA 4,448 3,665 1,815 1,133 Construction 5,788 4,338 5,995 4,520 Installment and personal lines of credit 1,445 163 1,445 163 Residential mortgage 29,124 28,402 21,955 21,398 Home equity lines of credit 2,322 2,192 2,452 2,318 Loans $ 51,392 $ 45,465 $ 48,501 $ 42,041 ( 1) The primary difference between the unpaid principal balance and recorded investment represents charge-offs previously taken; it excludes accrued interest receivable due to materiality. Related allowance is calculated on the recorded investment, not the unpaid principal balance. |
Average Recorded Investment in Impaired Loans and Interest Income | The average recorded investment in impaired loans and interest income recognized for the three months ended March 31, 2018, and 2017, by class, are summarized in the table below. Impaired loans include legacy impaired loans, all TDRs and all other nonaccrual loans including GNMA optional repurchase loans. Three Months Ended March 31, 2018 2017 (in thousands) Average Interest Average Interest Commercial $ 24,282 $ 152 $ 20,155 $ 139 SBA 6,429 96 9,048 101 Construction 4,424 7 6,274 1 Indirect automobile 3,260 64 2,237 52 Installment and personal lines of credit 447 46 396 34 Residential mortgage 31,317 208 13,763 48 Home equity lines of credit 3,480 19 1,952 16 Total $ 73,639 $ 592 $ 53,825 $ 391 |
Recorded Investment in Loans, by Loan Class and Risk Category | The following tables present the recorded investment in loans, by loan class and risk rating category, as of March 31, 2018 , and December 31, 2017 : (in thousands) March 31, 2018 Asset Rating Commercial SBA Construction Indirect Installment and Personal Lines of Credit Residential Home Equity Total Pass $ 846,587 $ 129,164 $ 255,830 $ — $ 27,953 $ 476,283 $ 145,521 $ 1,881,338 Special Mention 20,333 6,912 5,556 — 232 1,029 141 34,203 Substandard 30,377 4,232 4,394 4,991 531 35,361 4,202 84,088 897,297 140,308 265,780 4,991 28,716 512,673 149,864 1,999,629 Ungraded Performing — — — 1,714,679 — — — 1,714,679 Total $ 897,297 $ 140,308 $ 265,780 $ 1,719,670 $ 28,716 $ 512,673 $ 149,864 $ 3,714,308 (in thousands) December 31, 2017 Asset Rating Commercial SBA Construction Indirect Installment and Personal Lines of Credit Residential Home Equity Total Pass $ 758,271 $ 129,629 $ 235,987 $ — $ 25,229 $ 461,650 $ 145,082 $ 1,755,848 Special Mention 21,264 6,847 7,699 — 231 — — 36,041 Substandard 31,664 4,732 4,631 4,972 535 28,071 3,288 77,893 811,199 141,208 248,317 4,972 25,995 489,721 148,370 1,869,782 Ungraded Performing — — — 1,711,184 — — — 1,711,184 Total $ 811,199 $ 141,208 $ 248,317 $ 1,716,156 $ 25,995 $ 489,721 $ 148,370 $ 3,580,966 |
Changes in Expected Income from PCI Loans | Changes in the accretable yield, or income expected to be collected on PCI loans, for the three months ended March 31, 2018 and 2017 , were as follows: For the Three Months Ended March 31, (in thousands) 2018 2017 Beginning balance $ 3,005 $ 4,403 Accretion of income (569 ) (360 ) Other activity, net (1) 880 — Ending balance $ 3,316 $ 4,043 (1) Includes changes in cash flows expected to be collected due to changes in timing of liquidation events, prepayment assumptions, etc. |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Summary of Changes in the Allowance for Loan Losses, by Portfolio Type | A summary of changes in the allowance for loan losses (“ALL”) by loan portfolio type is as follows: Three Months Ended March 31, 2018 Commercial Loans (in thousands) Commercial SBA Construction Consumer Mortgage Unallocated Total Beginning balance $ 7,846 $ 1,968 $ 2,396 $ 10,758 $ 5,928 $ 876 $ 29,772 Charge-offs — (105 ) — (1,434 ) (40 ) — (1,579 ) Recoveries (75 ) 5 364 309 14 — 617 Net (charge-offs) / recoveries (75 ) (100 ) 364 (1,125 ) (26 ) — (962 ) Provision for loan losses 1,966 112 (160 ) 726 362 (876 ) 2,130 Ending balance $ 9,737 $ 1,980 $ 2,600 $ 10,359 $ 6,264 $ — $ 30,940 Three Months Ended March 31, 2017 Commercial Loans (in thousands) Commercial SBA Construction Consumer Mortgage Unallocated Total Beginning balance $ 9,331 $ 1,978 $ 2,176 $ 9,812 $ 5,755 $ 779 $ 29,831 Charge-offs (133 ) (85 ) — (1,835 ) (51 ) — (2,104 ) Recoveries 161 44 207 291 35 — 738 Net (charge-offs) / recoveries 28 (41 ) 207 (1,544 ) (16 ) — (1,366 ) Decrease in FDIC indemnification asset (110 ) — — — — — (110 ) Provision for loan losses (1) 200 191 (61 ) 1,667 71 32 2,100 Ending balance $ 9,449 $ 2,128 $ 2,322 $ 9,935 $ 5,810 $ 811 $ 30,455 (1) Net of benefit attributable to FDIC indemnification asset |
Balance of the Allowance for Loan Losses by Impairment Measurement Method and Related Recorded Investment | The following tables present, by loan portfolio type, the balance in the ALL disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans: March 31, 2018 Commercial Loans (in thousands) Commercial SBA Construction Consumer Mortgage Unallocated Total Individually evaluated $ 1,671 $ 259 $ — $ 214 $ 1,340 $ — $ 3,484 Collectively evaluated 7,993 1,721 2,575 10,145 4,888 — 27,322 Acquired with deteriorated credit quality 73 — 25 — 36 — 134 Total ALL $ 9,737 $ 1,980 $ 2,600 $ 10,359 $ 6,264 $ — $ 30,940 Individually evaluated $ 24,339 $ 6,419 $ 4,338 $ 445 $ 37,068 $ — $ 72,609 Collectively evaluated 854,212 133,451 261,052 1,747,929 620,738 — 3,617,382 Acquired with deteriorated credit quality 18,746 438 390 12 4,731 — 24,317 Total loans $ 897,297 $ 140,308 $ 265,780 $ 1,748,386 $ 662,537 $ — $ 3,714,308 December 31, 2017 Commercial Loans (in thousands) Commercial SBA Construction Consumer Mortgage Unallocated Total Individually evaluated $ 839 $ 294 $ — $ 219 $ 1,249 $ — $ 2,601 Collectively evaluated 6,935 1,674 2,371 10,539 4,567 876 26,962 Acquired with deteriorated credit quality 72 — 25 — 112 — 209 Total ALL $ 7,846 $ 1,968 $ 2,396 $ 10,758 $ 5,928 $ 876 $ 29,772 Individually evaluated $ 24,333 $ 6,797 $ 4,520 $ 453 $ 29,260 $ — $ 65,363 Collectively evaluated 766,143 133,955 243,344 1,741,635 603,895 — 3,488,972 Acquired with deteriorated credit quality 20,723 456 453 63 4,936 — 26,631 Total loans $ 811,199 $ 141,208 $ 248,317 $ 1,742,151 $ 638,091 $ — $ 3,580,966 |
Other Real Estate (Tables)
Other Real Estate (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Real Estate [Abstract] | |
Other Real Estate, by Type | The following table segregates the other real estate (“ORE”) by type: (in thousands) March 31, 2018 December 31, 2017 Commercial $ 1,382 $ 1,422 Residential 390 258 Undeveloped property 5,896 5,941 Total ORE, net $ 7,668 $ 7,621 |
Summary of Changes in Other Real Estate | The following table summarizes the changes in ORE: For the Three Months Ended March 31, (in thousands) 2018 2017 Beginning balance $ 7,621 $ 14,814 Transfers of loans to ORE 132 994 Sales — (3,685 ) Write-downs (85 ) (839 ) Ending balance $ 7,668 $ 11,284 |
Fair Value of Financial Instr25
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Measured at Fair Value on a Recurring Basis | The following tables present certain information regarding the financial assets measured at fair value on a recurring basis by level within the fair value hierarchy based on the inputs used to estimate the fair value at the measurement date. There were no transfers between Levels 1, 2, and 3, during the three months ended March 31, 2018 and 2017 . March 31, 2018 (in thousands) Total Fair Value Quoted Prices Significant Significant Investment securities available-for-sale $ 124,576 $ — $ 124,576 $ — Mortgage loans held-for-sale 355,515 — 355,515 — Other assets (1) 7,580 — — 7,580 Other liabilities (1) (1,641 ) — — (1,641 ) December 31, 2017 (in thousands) Total Fair Value Quoted Prices Significant Significant Investment securities available-for-sale $ 120,121 $ — $ 120,121 $ — Mortgage loans held-for-sale 269,140 — 269,140 — Other assets (1) 4,168 — — 4,168 Other liabilities (1) (691 ) — — (691 ) (1) Includes mortgage-related IRLCs and derivative financial instruments to hedge interest rate risk. IRLCs are recorded on a gross basis. |
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The following table presents a reconciliation of all other assets and other liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2018, and 2017 . The changes in the fair value of economic hedges were recorded in noninterest income from mortgage banking activities in the Consolidated Statements of Comprehensive Income and are designed to partially offset the change in fair value of the derivative financial instruments referenced in the following table: As of or for the Three Months Ended March 31, 2018 2017 (in thousands) Other (1) Other (1) Other (1) Other (1) Beginning balance $ 4,168 $ (691 ) $ 7,111 $ (1,065 ) Total gains / (losses) included in earnings: Issuances 7,580 (1,641 ) 8,025 (2,349 ) Settlements and closed loans (4,168 ) 691 (7,238 ) 1,065 Expirations — — 127 — Ending balance $ 7,580 $ (1,641 ) $ 8,025 $ (2,349 ) (1) Includes mortgage-related IRLCs and derivative financial instruments entered to hedge interest rate risk |
Changes in Fair Value of Assets Within Fair Value Hierarchy | The following tables present the assets that had changes in their recorded fair value and still held at the end of the reporting period by level within the fair value hierarchy based on the inputs used to estimate the fair value at the measurement date. March 31, 2018 (in thousands) Total Fair Value Quoted Prices Significant Significant Impaired loans $ 25,545 $ — $ — $ 25,545 ORE, net 359 — — 359 Residential mortgage servicing rights 38,991 — — 38,991 December 31, 2017 (in thousands) Total Fair Value Quoted Prices Significant Significant Impaired loans $ 23,257 $ — $ — $ 23,257 ORE, net 4,993 — — 4,993 Residential mortgage servicing rights 57,895 — — 57,895 SBA servicing rights 1,027 — — 1,027 |
Significant Unobservable Inputs Used in the Fair Value Measurement of Level 3 Assets and Liabilities | The following table shows the valuation technique and range, including weighted average, of the significant unobservable inputs and assumptions used in the fair value measurement of the Company’s Level 3 assets and liabilities: Fair Value at ($ in thousands) March 31, 2018 December 31, 2017 Valuation Unobservable Range/Weighted Range/Weighted Nonrecurring: Impaired loans $ 25,545 $ 23,257 Appraised value Estimated 0% - 10.00% 0% - 10.00% Other real estate 359 4,993 Discounted appraisals Estimated 0% - 10.00% 0% - 10.00% Residential mortgage servicing rights 38,991 57,895 Discounted Discount rate 10.14% - 11.63% 9.64% - 11.13% Modeled prepayment 6.75% - 13.45% 7.60% - 15.75% SBA servicing rights — 1,027 Discounted Discount rate N/A 13.12% Modeled prepayment N/A 11.33% Recurring: IRLCs 6,497 3,439 Pricing Modeled pull-through 84.50% 84.50% Forward commitments (558 ) 38 Investor Pricing spreads 98.70% - 104.52% 90.00% - 104.94% |
Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance of Loans Held for Sale | The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held-for-sale for which the fair value option (“FVO”) has been elected as of March 31, 2018 , and December 31, 2017 . The aggregate fair value of loans held-for-sale that were 90 days or more past due or in nonaccrual status at March 31, 2018 , was $165,000 with an unpaid principal balance of $177,000 , a difference of $12,000 in aggregate fair value under the unpaid principal balance. There were no loans held-for-sale that were 90 days or more past due or in nonaccrual status at December 31, 2017 . (in thousands) Aggregate Fair Value Aggregate Unpaid Aggregate Fair Value Over Residential mortgage loans held-for-sale $ 355,515 $ 348,797 $ 6,718 (in thousands) Aggregate Fair Value Aggregate Unpaid Aggregate Fair Value Over Residential mortgage loans held-for-sale $ 269,140 $ 262,315 $ 6,825 |
Carrying Values and Fair Values of Financial Instruments | The following tables include the carrying amount and estimated fair value, as well as the level within the fair value hierarchy, of the Company’s financial instruments. The fair value estimates presented are based upon relevant information available to management as of March 31, 2018 , and December 31, 2017 : Fair Value Measurements at March 31, 2018 (in thousands) Carrying Quoted Prices Significant Significant Total Fair Financial instruments (assets): Cash and cash equivalents $ 200,496 $ 200,496 $ — $ — $ 200,496 Investment securities available-for-sale 124,576 — 124,576 — 124,576 Investment securities held-to-maturity 21,342 — 16,970 3,977 20,947 Total loans, net (1) 4,108,668 — 355,515 3,499,485 3,855,000 Financial instruments (liabilities): Noninterest-bearing demand deposits $ 1,152,315 $ — $ — $ 1,152,315 $ 1,152,315 Interest-bearing deposits 2,748,092 — — 2,749,553 2,749,553 Short-term borrowings 337,795 — 337,795 — 337,795 Subordinated debt 120,620 — 112,610 — 112,610 Fair Value Measurements at December 31, 2017 (in thousands) Carrying Quoted Prices Significant Significant Total Fair Financial instruments (assets): Cash and cash equivalents $ 186,302 $ 186,302 $ — $ — $ 186,302 Investment securities available-for-sale 120,121 — 120,121 — 120,121 Investment securities held-to-maturity 21,689 — 17,684 4,001 21,685 Total loans, net (1) 3,908,949 — 269,140 3,466,839 3,735,979 Financial instruments (liabilities): Noninterest-bearing demand deposits $ 1,125,598 $ — $ — $ 1,125,598 $ 1,125,598 Interest-bearing deposits 2,741,602 — — 2,739,204 2,739,204 Short-term borrowings 150,580 — 150,580 — 150,580 Subordinated debt 120,587 — 114,402 — 114,402 (1) Includes $355,515 and $269,140 in residential mortgage loans held-for-sale at March 31, 2018 , and December 31, 2017 , respectively, for which the Company has elected FVO. |
Derivative Financial Instrume26
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Positions | The notional amounts of the Company’s derivative positions at March 31, 2018 and December 31, 2017 were as follows: Contract or Notional Amount as of (in thousands) March 31, December 31, Forward rate commitments $ 653,027 $ 430,389 Interest rate lock commitments 323,116 172,293 Total derivatives contracts $ 976,143 $ 602,682 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings Per Common Share | Earnings per common share (“EPS”) were calculated as follows: Three Months Ended March 31, (in thousands, except per share ) 2018 2017 Net income $ 11,767 $ 10,527 Weighted average common shares outstanding - basic (1) 27,011 26,335 Effect of dilutive stock options (2) 110 142 Weighted average common shares outstanding – diluted 27,121 26,477 EPS: Basic $ 0.44 $ 0.40 Diluted $ 0.43 $ 0.40 (1) Includes participating securities related to unvested restricted stock awards, net of forfeitures during the period, if any (2) Effect of dilutive stock options includes the dilutive effect of additional potential common shares issuable under contracts outstanding during each respective period |
Certain Transfers of Financia28
Certain Transfers of Financial Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Carrying Value of Loan Servicing Assets | The carrying value of the loan servicing rights assets is shown in the table below: (in thousands) March 31, 2018 December 31, 2017 Loan servicing rights Residential mortgage $ 107,943 $ 100,679 SBA 4,737 4,818 Indirect automobile 6,873 7,118 Total servicing rights $ 119,553 $ 112,615 |
Activity in the Company's Mortgage Servicing Rights and Impairment | The table below is an analysis of the activity in the Company’s MSRs and impairment: For the Three Months Ended March 31, (in thousands) 2018 2017 Residential mortgage servicing rights Beginning carrying value, net $ 100,679 $ 86,131 Additions 6,146 6,425 Amortization (3,426 ) (3,158 ) Recoveries, net (1) 4,544 1,989 Ending carrying value, net $ 107,943 $ 91,387 (1) Principally reflects changes in market interest rates and prepayment speeds, both of which affect future cash flow projections For the Three Months Ended March 31, (in thousands) 2018 2017 Residential mortgage servicing impairment Beginning balance $ 9,818 $ 9,152 Additions — 57 Recoveries (4,544 ) (2,046 ) Ending balance $ 5,274 $ 7,163 T |
Estimates and Assumptions Used in Determining Impairment of MSRs | The fair value of MSRs, key metrics, and the sensitivity of the fair value to adverse changes in model inputs and/or assumptions are summarized below: ($ in thousands) March 31, 2018 December 31, 2017 Residential Mortgage Servicing Rights Fair Value $ 113,237 $ 103,725 Composition of residential loans serviced for others: Fixed-rate 99.58 % 99.55 % Adjustable-rate 0.42 % 0.45 % Total 100.00 % 100.00 % Remaining term (years) 25.7 25.7 Modeled prepayment speed 6.94 % 8.19 % Decline in fair value due to a 10% adverse change $ (3,426 ) $ (3,497 ) Decline in fair value due to a 20% adverse change (6,610 ) (6,796 ) Weighted average discount rate 10.46 % 9.95 % Decline in fair value due to a 10% adverse change $ (5,154 ) $ (4,299 ) Decline in fair value due to a 20% adverse change (9,794 ) (8,223 ) |
Asset Quality of Residential Mortgage Loans | Information about the asset quality of residential mortgage loans serviced by the Company is shown in the table below: Residential mortgage loans serviced March 31, 2018 Net Charge-offs Unpaid Delinquent (days) (in thousands) 30 to 89 90+ Serviced for others $ 9,098,508 $ 101,544 $ 7,046 $ — Held-for-sale (1) 348,797 255 177 — Held-for-investment (2) 511,476 12,012 20,397 — Total residential mortgage loans serviced $ 9,958,781 $ 113,811 $ 27,620 $ — (1) The fair value of the amount that was 90+ days past due was $109,000 after applicable discount recorded under the fair value option for mortgage loans held-for-sale. There were no applicable discounts for loans held-for-sale that were 30-89 days past due. (2) Delinquent loans held-for-investment include repurchased loans covered by government agency guarantees that were 30-89 days past due and 90+ days past due of $4,860 and $16,962 , respectively. |
Activity in SBA Loan Servicing Rights and Impairment | The table below is an analysis of the activity in the Company’s SBA loan servicing rights and impairment: For the Three Months Ended March 31, (in thousands) 2018 2017 SBA loan servicing rights Beginning carrying value, net $ 4,818 $ 5,707 Additions 271 391 Amortization (483 ) (416 ) Recoveries / (impairment), net (1) 131 (20 ) Ending carrying value, net $ 4,737 $ 5,662 (1) Principally reflects changes in market interest rates and prepayment speeds, both of which affect future cash flow projections For the Three Months Ended March 31, (in thousands) 2018 2017 SBA servicing rights impairment Beginning balance $ 134 $ — Additions — 20 Recoveries (131 ) — Ending balance $ 3 $ 20 |
Estimates and Assumptions Used in Determining Impairment of SBA Loan Servicing Rights | The fair value of the SBA loan servicing rights, key metrics, and the sensitivity of the fair value to adverse changes in the model inputs and/or assumptions are summarized below: ($ in thousands) March 31, 2018 December 31, 2017 SBA loan servicing rights Fair Value $ 4,923 $ 5,275 Composition of loans serviced for others: Fixed-rate — % — % Adjustable-rate 100.00 % 100.00 % Total 100.00 % 100.00 % Remaining term (years) 18.8 18.9 Modeled prepayment speed 11.33 % 11.33 % Decline in fair value due to a 10% adverse change $ (171 ) $ (181 ) Decline in fair value due to a 20% adverse change (332 ) (351 ) Weighted average discount rate 13.63 % 13.13 % Decline in fair value due to a 10% adverse change $ (195 ) $ (199 ) Decline in fair value due to a 20% adverse change (376 ) (384 ) |
Asset Quality of SBA Loans | Information about the asset quality of SBA loans serviced by the Company is shown in the table below: SBA loans serviced March 31, 2018 Net Charge-offs Unpaid Delinquent (days) (in thousands) 30 to 89 90+ Serviced for others $ 248,232 $ 14,642 $ 1,422 $ — Held-for-sale 19,785 — — — Held-for-investment 144,975 5,187 4,004 100 Total SBA loans serviced $ 412,992 $ 19,829 $ 5,426 $ 100 |
Activity in Indirect Automobile Loan Servicing Rights | The table below is an analysis of the activity in the Company’s indirect automobile loan servicing rights: For the Three Months Ended March 31, (in thousands) 2018 2017 Indirect automobile loan servicing rights Beginning carrying value $ 7,118 $ 7,457 Additions 569 1,403 Amortization (814 ) (870 ) Ending carrying value $ 6,873 $ 7,990 |
Assumptions Used in Determining Fair Value of Indirect Automobile Loan Servicing Rights | The fair value of the indirect automobile loan servicing rights, key metrics, and the sensitivity of the fair value to adverse changes in model inputs and/or assumptions are summarized below: ($ in thousands) March 31, 2018 December 31, 2017 Indirect automobile loan servicing rights Fair value $ 6,961 $ 7,436 Composition of loans serviced for others: Fixed-rate 100.00 % 100.00 % Adjustable-rate — % — % Total 100.00 % 100.00 % Remaining term (years) 4.4 4.5 Modeled prepayment speed 20.59 % 20.59 % Decline in fair value due to a 10% adverse change $ (174 ) $ (192 ) Decline in fair value due to a 20% adverse change (343 ) (377 ) Weighted average discount rate 7.72 % 7.18 % Decline in fair value due to a 10% adverse change $ (67 ) $ (69 ) Decline in fair value due to a 20% adverse change (133 ) (137 ) |
Asset Quality of Indirect Automobile Loans | Information about the asset quality of the indirect automobile loans serviced by the Company is shown in the table below: March 31, 2018 Net Charge-offs Indirect automobile loans serviced Unpaid Delinquent (days) (in thousands) 30 to 89 90+ Serviced for others $ 1,018,743 $ 2,075 $ 2,756 $ 1,128 Held-for-sale 50,000 — — — Held-for-investment 1,719,670 3,292 3,187 1,147 Total indirect automobile loans serviced $ 2,788,413 $ 5,367 $ 5,943 $ 2,275 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2018, and 2017 : Three Months Ended March 31, ($ in thousands) 2018 2017 Noninterest Income In-scope of Topic 606: Service charges on deposit accounts $ 1,472 $ 1,455 Other fees and charges 2,035 1,791 Trust and wealth management 532 288 Other: Insurance commissions 398 300 Gain (loss) on ORE — 301 Total Other $ 398 $ 601 Noninterest income (in-scope of Topic 606) 4,437 4,135 Noninterest income (out-of-scope of Topic 606) 32,696 33,235 Total noninterest income $ 37,133 $ 37,370 |
Basis of Presentation and Sum30
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)subsidiarysegment | Dec. 31, 2017USD ($) | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of subsidiaries | subsidiary | 3 | ||
Number of business segments | segment | 1 | ||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Provisional Income Tax Expense (Benefit) | $ (4,900) | ||
Reclassification from accumulated other comprehensive income, stranded tax effects resulting from the Tax Cuts and Jobs Act | [1] | $ 0 | |
Operating leases, future minimum payments due | $ 20,400 | ||
Contractual lease, percentage of total assets | 0.42% | ||
Accumulated Other Comprehensive Income/(Loss), Net of Tax | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification from accumulated other comprehensive income, stranded tax effects resulting from the Tax Cuts and Jobs Act | [1] | $ 80 | |
[1] | Represents the impact of the adoption of Accounting Standards Update ("ASU") No. 2018-02 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Fair Value of Debt Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investment securities available-for-sale: | ||
Fair Value | $ 124,576 | $ 120,121 |
Investment securities held-to-maturity: | ||
Amortized Cost | 21,342 | 21,689 |
Investment securities available-for-sale | ||
Investment securities available-for-sale: | ||
Amortized Cost | 125,417 | 119,503 |
Gross Unrealized Gains | 867 | 1,296 |
Gross Unrealized Losses | (1,708) | (678) |
Fair Value | 124,576 | 120,121 |
Investment securities available-for-sale | Obligations of U.S. Government sponsored enterprises | ||
Investment securities available-for-sale: | ||
Amortized Cost | 22,173 | 22,182 |
Gross Unrealized Gains | 58 | 141 |
Gross Unrealized Losses | (275) | (98) |
Fair Value | 21,956 | 22,225 |
Investment securities available-for-sale | Municipal securities | ||
Investment securities available-for-sale: | ||
Amortized Cost | 9,302 | 9,318 |
Gross Unrealized Gains | 232 | 340 |
Gross Unrealized Losses | (42) | (23) |
Fair Value | 9,492 | 9,635 |
Investment securities available-for-sale | SBA | ||
Investment securities available-for-sale: | ||
Amortized Cost | 12,148 | 13,031 |
Gross Unrealized Gains | 0 | 6 |
Gross Unrealized Losses | (396) | (127) |
Fair Value | 11,752 | 12,910 |
Investment securities available-for-sale | Residential mortgage-backed securities | ||
Investment securities available-for-sale: | ||
Amortized Cost | 57,664 | 50,251 |
Gross Unrealized Gains | 577 | 803 |
Gross Unrealized Losses | (262) | (76) |
Fair Value | 57,979 | 50,978 |
Investment securities available-for-sale | Commercial mortgage-backed securities | ||
Investment securities available-for-sale: | ||
Amortized Cost | 24,130 | 24,721 |
Gross Unrealized Gains | 0 | 6 |
Gross Unrealized Losses | (733) | (354) |
Fair Value | 23,397 | 24,373 |
Investment securities held-to-maturity | ||
Investment securities held-to-maturity: | ||
Amortized Cost | 21,342 | 21,689 |
Gross Unrealized Gains | 100 | 152 |
Gross Unrealized Losses | (495) | (156) |
Fair Value | 20,947 | 21,685 |
Investment securities held-to-maturity | Municipal securities | ||
Investment securities held-to-maturity: | ||
Amortized Cost | 8,581 | 8,588 |
Gross Unrealized Gains | 17 | 53 |
Gross Unrealized Losses | (155) | 0 |
Fair Value | 8,443 | 8,641 |
Investment securities held-to-maturity | Residential mortgage-backed securities | ||
Investment securities held-to-maturity: | ||
Amortized Cost | 8,784 | 9,100 |
Gross Unrealized Gains | 83 | 99 |
Gross Unrealized Losses | (340) | (156) |
Fair Value | 8,527 | 9,043 |
Investment securities held-to-maturity | Commercial mortgage-backed securities | ||
Investment securities held-to-maturity: | ||
Amortized Cost | 3,977 | 4,001 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 3,977 | $ 4,001 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2018USD ($)security | Mar. 31, 2017USD ($)security | Dec. 31, 2017security | |
Investments, Debt and Equity Securities [Abstract] | |||
Number of available-for-sale securities in an unrealized loss position | security | 26 | 19 | |
Number of held-to-maturity securities in an unrealized loss position | security | 7 | 6 | |
Other-than-temporary impairment loss | $ | $ 0 | ||
Number of investment securities called, matured, or paid off | security | 1 | 2 | |
Gross gain (loss) on investment securities | $ | $ 0 | ||
Transfers of investment securities from available-for-sale to held-to-maturity | $ | $ 0 | $ 0 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Values of Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, continuous unrealized loss position, less than twelve months, fair value | $ 51,463 | $ 30,145 |
Available-for-sale, continuous unrealized loss position, less than twelve months, unrealized losses | (843) | (237) |
Available-for-sale, continuous unrealized loss position, more than twelve months, fair value | 22,288 | 23,772 |
Available-for-sale, continuous unrealized loss position, more than twelve months, unrealized losses | (865) | (441) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, fair value | 6,838 | 0 |
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, unrealized losses | (155) | 0 |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 7,248 | 7,652 |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, unrealized losses | (340) | (156) |
Obligations of U.S. Government sponsored enterprises | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, continuous unrealized loss position, less than twelve months, fair value | 19,796 | 14,974 |
Available-for-sale, continuous unrealized loss position, less than twelve months, unrealized losses | (275) | (98) |
Available-for-sale, continuous unrealized loss position, more than twelve months, fair value | 0 | 0 |
Available-for-sale, continuous unrealized loss position, more than twelve months, unrealized losses | 0 | 0 |
Municipal securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, continuous unrealized loss position, less than twelve months, fair value | 1,808 | 0 |
Available-for-sale, continuous unrealized loss position, less than twelve months, unrealized losses | (8) | 0 |
Available-for-sale, continuous unrealized loss position, more than twelve months, fair value | 1,034 | 1,050 |
Available-for-sale, continuous unrealized loss position, more than twelve months, unrealized losses | (34) | (23) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, fair value | 6,838 | |
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, unrealized losses | (155) | |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 0 | |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, unrealized losses | 0 | |
SBA | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, continuous unrealized loss position, less than twelve months, fair value | 7,106 | 3,285 |
Available-for-sale, continuous unrealized loss position, less than twelve months, unrealized losses | (207) | (42) |
Available-for-sale, continuous unrealized loss position, more than twelve months, fair value | 4,646 | 4,979 |
Available-for-sale, continuous unrealized loss position, more than twelve months, unrealized losses | (189) | (85) |
Residential mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, continuous unrealized loss position, less than twelve months, fair value | 10,968 | 1,835 |
Available-for-sale, continuous unrealized loss position, less than twelve months, unrealized losses | (92) | (8) |
Available-for-sale, continuous unrealized loss position, more than twelve months, fair value | 4,998 | 5,383 |
Available-for-sale, continuous unrealized loss position, more than twelve months, unrealized losses | (170) | (68) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, fair value | 0 | 0 |
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, unrealized losses | 0 | 0 |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, fair value | 7,248 | 7,652 |
Held-to-maturity securities, continuous unrealized loss position, twelve months or longer, unrealized losses | (340) | (156) |
Commercial mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale, continuous unrealized loss position, less than twelve months, fair value | 11,785 | 10,051 |
Available-for-sale, continuous unrealized loss position, less than twelve months, unrealized losses | (261) | (89) |
Available-for-sale, continuous unrealized loss position, more than twelve months, fair value | 11,610 | 12,360 |
Available-for-sale, continuous unrealized loss position, more than twelve months, unrealized losses | $ (472) | $ (265) |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Fair Value | $ 124,576 | $ 120,121 |
Held-to-maturity: | ||
Amortized Cost | 21,342 | 21,689 |
Investment securities available-for-sale | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Total Amortized Cost | 125,417 | 119,503 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Fair Value | 124,576 | 120,121 |
Investment securities available-for-sale | Obligations of U.S. Government sponsored enterprises | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Amortized Cost, due after one year through five years | 21,170 | 21,179 |
Amortized Cost, due five years through ten years | 1,003 | 1,003 |
Total Amortized Cost | 22,173 | 22,182 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Fair Value, due after one year through five years | 20,913 | 21,160 |
Fair Value, due five years through ten years | 1,043 | 1,065 |
Fair Value | 21,956 | 22,225 |
Investment securities available-for-sale | Municipal securities | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Amortized Cost, due after one year through five years | 1,498 | 1,503 |
Amortized Cost, due five years through ten years | 2,750 | 2,753 |
Amortized Cost, due after ten years | 5,054 | 5,062 |
Total Amortized Cost | 9,302 | 9,318 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Fair Value, due after one year through five years | 1,468 | 1,488 |
Fair Value, due five years through ten years | 2,837 | 2,877 |
Fair Value, due after ten years | 5,187 | 5,270 |
Fair Value | 9,492 | 9,635 |
Investment securities available-for-sale | SBA | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Amortized Cost, due five years through ten years | 7,313 | 7,967 |
Amortized Cost, due after ten years | 4,835 | 5,064 |
Total Amortized Cost | 12,148 | 13,031 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Fair Value, due five years through ten years | 7,106 | 7,931 |
Fair Value, due after ten years | 4,646 | 4,979 |
Fair Value | 11,752 | 12,910 |
Investment securities available-for-sale | Residential mortgage-backed securities | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Total Amortized Cost | 57,664 | 50,251 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Fair Value | 57,979 | 50,978 |
Investment securities available-for-sale | Commercial mortgage-backed securities | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Total Amortized Cost | 24,130 | 24,721 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Fair Value | 23,397 | 24,373 |
Investment securities held-to-maturity | ||
Held-to-maturity: | ||
Amortized Cost | 21,342 | 21,689 |
Fair Value | 20,947 | 21,685 |
Investment securities held-to-maturity | Municipal securities | ||
Held-to-maturity: | ||
Amortized Cost, due after five years through ten years | 1,588 | 1,588 |
Fair Value, due after five through ten years | 1,604 | 1,641 |
Amortized Cost, due after ten years | 6,993 | 7,000 |
Fair Value, due after ten years | 6,839 | 7,000 |
Amortized Cost | 8,581 | 8,588 |
Fair Value | 8,443 | 8,641 |
Investment securities held-to-maturity | Residential mortgage-backed securities | ||
Held-to-maturity: | ||
Amortized Cost | 8,784 | 9,100 |
Fair Value | 8,527 | 9,043 |
Investment securities held-to-maturity | Commercial mortgage-backed securities | ||
Held-to-maturity: | ||
Amortized Cost | 3,977 | 4,001 |
Fair Value | $ 3,977 | $ 4,001 |
Investment Securities - Summa35
Investment Securities - Summary of Investment Securities Pledged as Collateral (Details) - Investment Securities Pledged as Collateral - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Public deposits | $ 62,844 | $ 60,415 |
Securities sold under repurchase agreements | 25,551 | 19,485 |
Total pledged securities | $ 88,395 | $ 79,900 |
Loans Held-for-Sale - Summary o
Loans Held-for-Sale - Summary of Loans Held-for-Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-sale | $ 425,300 | $ 357,755 |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-sale | 355,515 | 269,140 |
SBA | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-sale | 19,785 | 13,615 |
Indirect automobile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-sale | $ 50,000 | $ 75,000 |
Loans Held-for-Sale - Narrative
Loans Held-for-Sale - Narrative (Details) - Residential mortgage - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans transferred to held for investment residential mortgage portfolio | $ 1,700,000 | $ 0 | |
Amount pledged in residential real estate loans held-for-sale | $ 220,600,000 | $ 154,200,000 |
Loans - Narrative (Details)
Loans - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)Score | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)Score | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Unamortized loan costs | $ 36,000 | $ 35,900 | |
Assets included in covered loans with reimbursable loss period in current year | 2,200 | 2,300 | |
Impaired financing receivable, expected interest income on full accrual basis | 648 | $ 531 | |
Repurchased loans | 58,706 | 47,012 | |
Loans pledged to FRB | 330,000 | 330,000 | |
Unpaid principal balance, with no related allowance | $ 51,392 | $ 48,501 | |
Weighted average FICO score for the indirect loan portfolio (as a score) | Score | 777 | 762 | |
Carrying amount of PCI loans | $ 24,300 | $ 26,600 | |
Outstanding balance of PCI loans | 32,600 | 35,300 | |
Loans Insured or Guaranteed by US Government Authorities | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Repurchased loans | 26,100 | 19,500 | |
Mortgage Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Repurchased loans | 34,535 | 26,323 | |
Mortgage Portfolio Segment | Real Estate Loan | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Repurchased loans | 30,650 | 23,169 | |
Unpaid principal balance, with no related allowance | 29,124 | 21,955 | |
Mortgage Portfolio Segment | Real Estate Loan | Loans Insured or Guaranteed by US Government Authorities | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Unpaid principal balance, with no related allowance | $ 26,100 | $ 19,500 |
Loans - Loans Outstanding, by C
Loans - Loans Outstanding, by Class (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 3,714,308 | $ 3,580,966 |
Legacy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,535,812 | 3,384,399 |
Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 178,496 | 196,567 |
Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,037,605 | 952,407 |
Commercial Portfolio Segment | Legacy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 904,259 | 808,730 |
Commercial Portfolio Segment | Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 133,346 | 143,677 |
Commercial Portfolio Segment | Commercial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 897,297 | 811,199 |
Commercial Portfolio Segment | Commercial Loans | Legacy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 771,820 | 675,544 |
Commercial Portfolio Segment | Commercial Loans | Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 125,477 | 135,655 |
Commercial Portfolio Segment | SBA Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 140,308 | 141,208 |
Commercial Portfolio Segment | SBA Loans | Legacy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 132,439 | 133,186 |
Commercial Portfolio Segment | SBA Loans | Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 7,869 | 8,022 |
Construction Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 265,780 | 248,317 |
Construction Portfolio Segment | Legacy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 261,700 | 243,112 |
Construction Portfolio Segment | Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,080 | 5,205 |
Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,748,386 | 1,742,151 |
Consumer Portfolio Segment | Legacy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,746,937 | 1,740,314 |
Consumer Portfolio Segment | Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,449 | 1,837 |
Consumer Portfolio Segment | Automobile Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,719,670 | 1,716,156 |
Consumer Portfolio Segment | Automobile Loan | Legacy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,719,670 | 1,716,156 |
Consumer Portfolio Segment | Automobile Loan | Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Consumer Portfolio Segment | Installment Loans and Personal Lines of Credits | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 28,716 | 25,995 |
Consumer Portfolio Segment | Installment Loans and Personal Lines of Credits | Legacy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 27,267 | 24,158 |
Consumer Portfolio Segment | Installment Loans and Personal Lines of Credits | Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,449 | 1,837 |
Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 662,537 | 638,091 |
Mortgage Portfolio Segment | Legacy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 622,916 | 592,243 |
Mortgage Portfolio Segment | Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 39,621 | 45,848 |
Mortgage Portfolio Segment | Real Estate Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 512,673 | 489,721 |
Mortgage Portfolio Segment | Real Estate Loan | Legacy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 489,118 | 461,194 |
Mortgage Portfolio Segment | Real Estate Loan | Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 23,555 | 28,527 |
Mortgage Portfolio Segment | Home Equity Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 149,864 | 148,370 |
Mortgage Portfolio Segment | Home Equity Loan | Legacy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 133,798 | 131,049 |
Mortgage Portfolio Segment | Home Equity Loan | Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 16,066 | $ 17,321 |
Loans - Loans in Nonaccrual Sta
Loans - Loans in Nonaccrual Status, by Class (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccrual loans | $ 58,706 | $ 47,012 |
Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccrual loans | 17,862 | 13,817 |
Construction Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccrual loans | 4,338 | 4,520 |
Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccrual loans | 1,971 | 2,352 |
Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccrual loans | 34,535 | 26,323 |
Commercial Loans | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccrual loans | 13,270 | 11,314 |
SBA Loans | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccrual loans | 4,592 | 2,503 |
Automobile Loan | Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccrual loans | 1,535 | 1,912 |
Installment Loans and Personal Lines of Credits | Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccrual loans | 436 | 440 |
Real Estate Loan | Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccrual loans | 30,650 | 23,169 |
Home Equity Loan | Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonaccrual loans | $ 3,885 | $ 3,154 |
Loans - Accruing Delinquent Loa
Loans - Accruing Delinquent Loans and Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDRs Accruing | $ 12,460 | $ 14,807 |
Construction Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDRs Accruing | 0 | 0 |
Commercial Loans | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDRs Accruing | 8,404 | 8,468 |
SBA Loans | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDRs Accruing | 1,446 | 3,800 |
Automobile Loan | Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDRs Accruing | 2,132 | 1,960 |
Installment Loans and Personal Lines of Credits | Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDRs Accruing | 30 | 33 |
Real Estate Loan | Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDRs Accruing | 395 | 495 |
Home Equity Loan | Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDRs Accruing | 53 | 51 |
Financing Receivables, 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | 15,695 | 22,079 |
Financing Receivables, 30 to 89 Days Past Due | Construction Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | 286 | 0 |
Financing Receivables, 30 to 89 Days Past Due | Commercial Loans | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | 927 | 3,821 |
Financing Receivables, 30 to 89 Days Past Due | SBA Loans | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | 4,417 | 5,560 |
Financing Receivables, 30 to 89 Days Past Due | Automobile Loan | Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | 2,257 | 3,971 |
Financing Receivables, 30 to 89 Days Past Due | Installment Loans and Personal Lines of Credits | Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | 247 | 449 |
Financing Receivables, 30 to 89 Days Past Due | Real Estate Loan | Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | 6,581 | 7,447 |
Financing Receivables, 30 to 89 Days Past Due | Home Equity Loan | Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | 980 | 831 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | 7,728 | 6,313 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Construction Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | 48 | 102 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Loans | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | 7,257 | 5,722 |
Financing Receivables, Equal to Greater than 90 Days Past Due | SBA Loans | Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | 63 | 70 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Automobile Loan | Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | 0 | 87 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Installment Loans and Personal Lines of Credits | Consumer Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Real Estate Loan | Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | 347 | 268 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Home Equity Loan | Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due accruing loans | $ 13 | $ 64 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructurings (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDR modified for interest rate | $ 12,000 | $ 187,000 | |
TDR modified for term | 1,100,000 | ||
Troubled debt restructured loans | 21,000,000 | $ 20,700,000 | |
Charge-off / (recoveries) of TDR loans | 0 | 44,000 | |
Mortgage Portfolio Segment | Mortgage Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount of loans restructured during period and subsequently redefaulted | $ 267,000 | ||
Commercial Portfolio Segment | Commercial Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount of loans restructured during period and subsequently redefaulted | $ 195,000 |
Loans - Loans Held-for-Investme
Loans - Loans Held-for-Investment Pledged as Collateral (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | $ 741,957 | $ 688,812 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 248,844 | 242,695 |
Home equity lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 104,575 | 94,526 |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | $ 388,538 | $ 351,591 |
Loans - Impaired Legacy Loans a
Loans - Impaired Legacy Loans and Acquired Non-PCI Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
Unpaid principal balance, with related allowance | $ 29,107 | $ 24,523 |
Recorded investment, with related allowance | 27,144 | 23,322 |
Related Allowance | 3,484 | 2,601 |
Unpaid principal balance, with no related allowance | 51,392 | 48,501 |
Recorded investment, with no related allowance | 45,465 | 42,041 |
Commercial Portfolio Segment | Commercial Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid principal balance, with related allowance | 18,488 | 11,877 |
Recorded investment, with related allowance | 17,634 | 11,824 |
Related Allowance | 1,671 | 839 |
Unpaid principal balance, with no related allowance | 8,265 | 14,839 |
Recorded investment, with no related allowance | 6,705 | 12,509 |
Commercial Portfolio Segment | SBA Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid principal balance, with related allowance | 3,637 | 6,634 |
Recorded investment, with related allowance | 2,753 | 5,664 |
Related Allowance | 259 | 294 |
Unpaid principal balance, with no related allowance | 4,448 | 1,815 |
Recorded investment, with no related allowance | 3,665 | 1,133 |
Construction Portfolio Segment | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid principal balance, with related allowance | 0 | 0 |
Recorded investment, with related allowance | 0 | 0 |
Related Allowance | 0 | 0 |
Unpaid principal balance, with no related allowance | 5,788 | 5,995 |
Recorded investment, with no related allowance | 4,338 | 4,520 |
Consumer Portfolio Segment | Installment Loans and Personal Lines of Credits | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid principal balance, with related allowance | 336 | 343 |
Recorded investment, with related allowance | 283 | 290 |
Related Allowance | 214 | 219 |
Unpaid principal balance, with no related allowance | 1,445 | 1,445 |
Recorded investment, with no related allowance | 163 | 163 |
Mortgage Portfolio Segment | Real Estate Loan | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid principal balance, with related allowance | 5,107 | 4,838 |
Recorded investment, with related allowance | 5,058 | 4,799 |
Related Allowance | 612 | 616 |
Unpaid principal balance, with no related allowance | 29,124 | 21,955 |
Recorded investment, with no related allowance | 28,402 | 21,398 |
Mortgage Portfolio Segment | Home Equity Loan | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid principal balance, with related allowance | 1,539 | 831 |
Recorded investment, with related allowance | 1,416 | 745 |
Related Allowance | 728 | 633 |
Unpaid principal balance, with no related allowance | 2,322 | 2,452 |
Recorded investment, with no related allowance | $ 2,192 | $ 2,318 |
Loans - Average Recorded Invest
Loans - Average Recorded Investment in Impaired Loans and Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Receivables with Imputed Interest [Line Items] | ||
Average Recorded Investment | $ 73,639 | $ 53,825 |
Interest Income Recognized | 592 | 391 |
Commercial Portfolio Segment | Commercial Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Average Recorded Investment | 24,282 | 20,155 |
Interest Income Recognized | 152 | 139 |
Commercial Portfolio Segment | SBA Loans | ||
Receivables with Imputed Interest [Line Items] | ||
Average Recorded Investment | 6,429 | 9,048 |
Interest Income Recognized | 96 | 101 |
Construction Portfolio Segment | ||
Receivables with Imputed Interest [Line Items] | ||
Average Recorded Investment | 4,424 | 6,274 |
Interest Income Recognized | 7 | 1 |
Consumer Portfolio Segment | Automobile Loan | ||
Receivables with Imputed Interest [Line Items] | ||
Average Recorded Investment | 3,260 | 2,237 |
Interest Income Recognized | 64 | 52 |
Consumer Portfolio Segment | Installment Loans and Personal Lines of Credits | ||
Receivables with Imputed Interest [Line Items] | ||
Average Recorded Investment | 447 | 396 |
Interest Income Recognized | 46 | 34 |
Mortgage Portfolio Segment | Real Estate Loan | ||
Receivables with Imputed Interest [Line Items] | ||
Average Recorded Investment | 31,317 | 13,763 |
Interest Income Recognized | 208 | 48 |
Mortgage Portfolio Segment | Home Equity Loan | ||
Receivables with Imputed Interest [Line Items] | ||
Average Recorded Investment | 3,480 | 1,952 |
Interest Income Recognized | $ 19 | $ 16 |
Loans - Recorded Investment in
Loans - Recorded Investment in Loans, by Loan Class and Risk Category (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 3,714,308 | $ 3,580,966 |
Graded Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,999,629 | 1,869,782 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,881,338 | 1,755,848 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 34,203 | 36,041 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 84,088 | 77,893 |
Ungraded Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,714,679 | 1,711,184 |
Commercial Portfolio Segment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,037,605 | 952,407 |
Commercial Portfolio Segment | Commercial Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 897,297 | 811,199 |
Commercial Portfolio Segment | Commercial Loans | Graded Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 897,297 | 811,199 |
Commercial Portfolio Segment | Commercial Loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 846,587 | 758,271 |
Commercial Portfolio Segment | Commercial Loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 20,333 | 21,264 |
Commercial Portfolio Segment | Commercial Loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 30,377 | 31,664 |
Commercial Portfolio Segment | Commercial Loans | Ungraded Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Portfolio Segment | SBA Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 140,308 | 141,208 |
Commercial Portfolio Segment | SBA Loans | Graded Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 140,308 | 141,208 |
Commercial Portfolio Segment | SBA Loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 129,164 | 129,629 |
Commercial Portfolio Segment | SBA Loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,912 | 6,847 |
Commercial Portfolio Segment | SBA Loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,232 | 4,732 |
Commercial Portfolio Segment | SBA Loans | Ungraded Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Construction Portfolio Segment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 265,780 | 248,317 |
Construction Portfolio Segment | Graded Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 265,780 | 248,317 |
Construction Portfolio Segment | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 255,830 | 235,987 |
Construction Portfolio Segment | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,556 | 7,699 |
Construction Portfolio Segment | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,394 | 4,631 |
Construction Portfolio Segment | Ungraded Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer Portfolio Segment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,748,386 | 1,742,151 |
Consumer Portfolio Segment | Automobile Loan | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,719,670 | 1,716,156 |
Consumer Portfolio Segment | Automobile Loan | Graded Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,991 | 4,972 |
Consumer Portfolio Segment | Automobile Loan | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer Portfolio Segment | Automobile Loan | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer Portfolio Segment | Automobile Loan | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,991 | 4,972 |
Consumer Portfolio Segment | Automobile Loan | Ungraded Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,714,679 | 1,711,184 |
Consumer Portfolio Segment | Installment Loans and Personal Lines of Credits | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 28,716 | 25,995 |
Consumer Portfolio Segment | Installment Loans and Personal Lines of Credits | Graded Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 28,716 | 25,995 |
Consumer Portfolio Segment | Installment Loans and Personal Lines of Credits | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 27,953 | 25,229 |
Consumer Portfolio Segment | Installment Loans and Personal Lines of Credits | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 232 | 231 |
Consumer Portfolio Segment | Installment Loans and Personal Lines of Credits | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 531 | 535 |
Consumer Portfolio Segment | Installment Loans and Personal Lines of Credits | Ungraded Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Mortgage Portfolio Segment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 662,537 | 638,091 |
Mortgage Portfolio Segment | Real Estate Loan | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 512,673 | 489,721 |
Mortgage Portfolio Segment | Real Estate Loan | Graded Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 512,673 | 489,721 |
Mortgage Portfolio Segment | Real Estate Loan | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 476,283 | 461,650 |
Mortgage Portfolio Segment | Real Estate Loan | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,029 | 0 |
Mortgage Portfolio Segment | Real Estate Loan | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 35,361 | 28,071 |
Mortgage Portfolio Segment | Real Estate Loan | Ungraded Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Mortgage Portfolio Segment | Home Equity Loan | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 149,864 | 148,370 |
Mortgage Portfolio Segment | Home Equity Loan | Graded Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 149,864 | 148,370 |
Mortgage Portfolio Segment | Home Equity Loan | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 145,521 | 145,082 |
Mortgage Portfolio Segment | Home Equity Loan | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 141 | 0 |
Mortgage Portfolio Segment | Home Equity Loan | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,202 | 3,288 |
Mortgage Portfolio Segment | Home Equity Loan | Ungraded Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 0 | $ 0 |
Loans - Changes in Expected Inc
Loans - Changes in Expected Income from PCI Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Purchase Credit Impaired Loans, Reconciliation of Income Expected to be Collected [Roll Forward] | |||
Beginning balance | $ 3,005 | $ 4,403 | |
Accretion of income | (569) | (360) | |
Other activity, net | [1] | 880 | 0 |
Ending balance | $ 3,316 | $ 4,043 | |
[1] | Includes changes in cash flows expected to be collected due to changes in timing of liquidation events, prepayment assumptions, etc. |
Allowance for Loan Losses - Sum
Allowance for Loan Losses - Summary of Changes in the Allowance for Loan Losses, by Portfolio Type (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | $ 29,772 | $ 29,831 | |
Charge-offs | (1,579) | (2,104) | |
Recoveries | 617 | 738 | |
Net (charge-offs) / recoveries | (962) | (1,366) | |
Decrease in FDIC indemnification asset | (110) | ||
Provision for loan losses | 2,130 | 2,100 | [1] |
Ending balance | 30,940 | 30,455 | |
Commercial Portfolio Segment | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 7,846 | 9,331 | |
Charge-offs | 0 | (133) | |
Recoveries | (75) | 161 | |
Net (charge-offs) / recoveries | (75) | 28 | |
Decrease in FDIC indemnification asset | (110) | ||
Provision for loan losses | 1,966 | 200 | [1] |
Ending balance | 9,737 | 9,449 | |
Commercial Portfolio Segment | SBA Loans | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 1,968 | 1,978 | |
Charge-offs | (105) | (85) | |
Recoveries | 5 | 44 | |
Net (charge-offs) / recoveries | (100) | (41) | |
Decrease in FDIC indemnification asset | 0 | ||
Provision for loan losses | 112 | 191 | [1] |
Ending balance | 1,980 | 2,128 | |
Construction Portfolio Segment | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 2,396 | 2,176 | |
Charge-offs | 0 | 0 | |
Recoveries | 364 | 207 | |
Net (charge-offs) / recoveries | 364 | 207 | |
Decrease in FDIC indemnification asset | 0 | ||
Provision for loan losses | (160) | (61) | [1] |
Ending balance | 2,600 | 2,322 | |
Consumer Portfolio Segment | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 10,758 | 9,812 | |
Charge-offs | (1,434) | (1,835) | |
Recoveries | 309 | 291 | |
Net (charge-offs) / recoveries | (1,125) | (1,544) | |
Decrease in FDIC indemnification asset | 0 | ||
Provision for loan losses | 726 | 1,667 | [1] |
Ending balance | 10,359 | 9,935 | |
Mortgage Portfolio Segment | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 5,928 | 5,755 | |
Charge-offs | (40) | (51) | |
Recoveries | 14 | 35 | |
Net (charge-offs) / recoveries | (26) | (16) | |
Decrease in FDIC indemnification asset | 0 | ||
Provision for loan losses | 362 | 71 | [1] |
Ending balance | 6,264 | 5,810 | |
Unallocated Financing Receivables | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 876 | 779 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net (charge-offs) / recoveries | 0 | 0 | |
Decrease in FDIC indemnification asset | 0 | ||
Provision for loan losses | (876) | 32 | [1] |
Ending balance | $ 0 | $ 811 | |
[1] | Net of benefit attributable to FDIC indemnification asset |
Allowance for Loan Losses - Bal
Allowance for Loan Losses - Balance of the Allowance for Loan Losses by Impairment Measurement Method and Related Recorded Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated | $ 3,484 | $ 2,601 | ||
Collectively evaluated | 27,322 | 26,962 | ||
Total ALL | 30,940 | 29,772 | $ 30,455 | $ 29,831 |
Individually evaluated | 72,609 | 65,363 | ||
Collectively evaluated | 3,617,382 | 3,488,972 | ||
Total loans | 3,714,308 | 3,580,966 | ||
Acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total ALL | 134 | 209 | ||
Total loans | 24,317 | 26,631 | ||
Commercial Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total ALL | 9,737 | 7,846 | 9,449 | 9,331 |
Total loans | 1,037,605 | 952,407 | ||
Construction Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated | 0 | 0 | ||
Collectively evaluated | 2,575 | 2,371 | ||
Total ALL | 2,600 | 2,396 | 2,322 | 2,176 |
Individually evaluated | 4,338 | 4,520 | ||
Collectively evaluated | 261,052 | 243,344 | ||
Total loans | 265,780 | 248,317 | ||
Construction Portfolio Segment | Acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total ALL | 25 | 25 | ||
Total loans | 390 | 453 | ||
Consumer Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated | 214 | 219 | ||
Collectively evaluated | 10,145 | 10,539 | ||
Total ALL | 10,359 | 10,758 | 9,935 | 9,812 |
Individually evaluated | 445 | 453 | ||
Collectively evaluated | 1,747,929 | 1,741,635 | ||
Total loans | 1,748,386 | 1,742,151 | ||
Consumer Portfolio Segment | Acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total ALL | 0 | 0 | ||
Total loans | 12 | 63 | ||
Mortgage Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated | 1,340 | 1,249 | ||
Collectively evaluated | 4,888 | 4,567 | ||
Total ALL | 6,264 | 5,928 | 5,810 | 5,755 |
Individually evaluated | 37,068 | 29,260 | ||
Collectively evaluated | 620,738 | 603,895 | ||
Total loans | 662,537 | 638,091 | ||
Mortgage Portfolio Segment | Acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total ALL | 36 | 112 | ||
Total loans | 4,731 | 4,936 | ||
Unallocated Financing Receivables | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated | 0 | 0 | ||
Collectively evaluated | 0 | 876 | ||
Total ALL | 0 | 876 | 811 | 779 |
Individually evaluated | 0 | 0 | ||
Collectively evaluated | 0 | 0 | ||
Total loans | 0 | 0 | ||
Unallocated Financing Receivables | Acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total ALL | 0 | 0 | ||
Total loans | 0 | 0 | ||
SBA Loans | Commercial Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated | 259 | 294 | ||
Collectively evaluated | 1,721 | 1,674 | ||
Total ALL | 1,980 | 1,968 | $ 2,128 | $ 1,978 |
Individually evaluated | 6,419 | 6,797 | ||
Collectively evaluated | 133,451 | 133,955 | ||
Total loans | 140,308 | 141,208 | ||
SBA Loans | Commercial Portfolio Segment | Acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total ALL | 0 | 0 | ||
Total loans | 438 | 456 | ||
Commercial Loans | Commercial Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated | 1,671 | 839 | ||
Collectively evaluated | 7,993 | 6,935 | ||
Total ALL | 9,737 | 7,846 | ||
Individually evaluated | 24,339 | 24,333 | ||
Collectively evaluated | 854,212 | 766,143 | ||
Total loans | 897,297 | 811,199 | ||
Commercial Loans | Commercial Portfolio Segment | Acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total ALL | 73 | 72 | ||
Total loans | $ 18,746 | $ 20,723 |
Allowance for Loan Losses - Nar
Allowance for Loan Losses - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Acquired loans | $ 178.5 | $ 196.6 |
Other Real Estate - Other Real
Other Real Estate - Other Real Estate, by Type (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Real Estate Owned Disclosure [Line Items] | ||||
Total ORE, net | $ 7,668 | $ 7,621 | $ 11,284 | $ 14,814 |
Commercial | ||||
Real Estate Owned Disclosure [Line Items] | ||||
Total ORE, net | 1,382 | 1,422 | ||
Residential | ||||
Real Estate Owned Disclosure [Line Items] | ||||
Total ORE, net | 390 | 258 | ||
Undeveloped property | ||||
Real Estate Owned Disclosure [Line Items] | ||||
Total ORE, net | $ 5,896 | $ 5,941 |
Other Real Estate - Summary of
Other Real Estate - Summary of Changes in Other Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Real Estate [Roll Forward] | ||
Beginning balance | $ 7,621 | $ 14,814 |
Transfers of loans to ORE | 132 | 994 |
Sales | 0 | (3,685) |
Write-downs | (85) | (839) |
Ending balance | $ 7,668 | $ 11,284 |
Other Real Estate - Narrative (
Other Real Estate - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Real Estate Owned Disclosure [Line Items] | ||
Unpaid principal balance of residential mortgage loans in process of foreclosure | $ 6 | $ 3 |
Loans Insured or Guaranteed by US Government Authorities | ||
Real Estate Owned Disclosure [Line Items] | ||
Unpaid principal balance of residential mortgage loans in process of foreclosure | $ 5.1 | $ 2.1 |
Fair Value of Financial Instr54
Fair Value of Financial Instruments - Financial Assets Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Financial assets measured at fair value on a recurring basis and the change in fair value | |||
Investment securities available-for-sale | $ 124,576 | $ 120,121 | |
Mortgage loans held-for-sale | 355,515 | 269,140 | |
Recurring | |||
Financial assets measured at fair value on a recurring basis and the change in fair value | |||
Investment securities available-for-sale | 124,576 | 120,121 | |
Mortgage loans held-for-sale | 355,515 | 269,140 | |
Other assets | [1] | 7,580 | 4,168 |
Other liabilities | [1] | (1,641) | (691) |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Financial assets measured at fair value on a recurring basis and the change in fair value | |||
Investment securities available-for-sale | 0 | 0 | |
Mortgage loans held-for-sale | 0 | 0 | |
Other assets | 0 | 0 | |
Other liabilities | 0 | 0 | |
Recurring | Significant Other Observable Inputs (Level 2) | |||
Financial assets measured at fair value on a recurring basis and the change in fair value | |||
Investment securities available-for-sale | 124,576 | 120,121 | |
Mortgage loans held-for-sale | 355,515 | 269,140 | |
Other assets | 0 | 0 | |
Other liabilities | 0 | 0 | |
Recurring | Significant Unobservable Inputs (Level 3) | |||
Financial assets measured at fair value on a recurring basis and the change in fair value | |||
Investment securities available-for-sale | 0 | 0 | |
Mortgage loans held-for-sale | 0 | 0 | |
Other assets | [1] | 7,580 | 4,168 |
Other liabilities | [1] | $ (1,641) | $ (691) |
[1] | Includes mortgage-related IRLCs and derivative financial instruments to hedge interest rate risk. IRLCs are recorded on a gross basis. |
Fair Value of Financial Instr55
Fair Value of Financial Instruments - Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Assets | ||
Other assets rollforward | ||
Beginning balance | $ 4,168 | $ 7,111 |
Issuances | 7,580 | 8,025 |
Settlements and closed loans | (4,168) | (7,238) |
Expirations | 0 | 127 |
Ending balance | 7,580 | 8,025 |
Other Liabilities | ||
Other liabilities rollforward | ||
Beginning balance | (691) | (1,065) |
Issuances | (1,641) | (2,349) |
Settlements and closed loans | 691 | 1,065 |
Expirations | 0 | 0 |
Ending balance | $ (1,641) | $ (2,349) |
Fair Value of Financial Instr56
Fair Value of Financial Instruments - Changes in Fair Value of Assets Within Fair Value Hierarchy (Details) - Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets Measured at Fair Value on Non Recurring Basis | ||
Impaired loans | $ 25,545 | $ 23,257 |
ORE, net | 359 | 4,993 |
Residential mortgage servicing rights | 38,991 | 57,895 |
SBA servicing rights | 1,027 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets Measured at Fair Value on Non Recurring Basis | ||
Impaired loans | 0 | 0 |
ORE, net | 0 | 0 |
Residential mortgage servicing rights | 0 | 0 |
SBA servicing rights | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Assets Measured at Fair Value on Non Recurring Basis | ||
Impaired loans | 0 | 0 |
ORE, net | 0 | 0 |
Residential mortgage servicing rights | 0 | 0 |
SBA servicing rights | 0 | |
Significant Unobservable Inputs (Level 3) | ||
Assets Measured at Fair Value on Non Recurring Basis | ||
Impaired loans | 25,545 | 23,257 |
ORE, net | 359 | 4,993 |
Residential mortgage servicing rights | $ 38,991 | 57,895 |
SBA servicing rights | $ 1,027 |
Fair Value of Financial Instr57
Fair Value of Financial Instruments - Significant Unobservable Inputs Used in the Fair Value Measurement of Level 3 Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | ||
Nonrecurring | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Impaired loans | $ 25,545 | $ 23,257 | |
Other real estate | 359 | 4,993 | |
Residential mortgage servicing rights | 38,991 | 57,895 | |
SBA servicing rights | 1,027 | ||
Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Impaired loans | 25,545 | 23,257 | |
Other real estate | 359 | 4,993 | |
Residential mortgage servicing rights | 38,991 | 57,895 | |
SBA servicing rights | 1,027 | ||
Recurring | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
IRLCs | [1] | 7,580 | 4,168 |
Recurring | Significant Unobservable Inputs (Level 3) | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
IRLCs | [1] | 7,580 | 4,168 |
Impaired loans | Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Impaired loans | $ 25,545 | $ 23,257 | |
Impaired loans | Discounted Appraisals | Nonrecurring | Significant Unobservable Inputs (Level 3) | Minimum | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Unobservable inputs, estimated selling costs (as a percent) | 0.00% | 0.00% | |
Impaired loans | Discounted Appraisals | Nonrecurring | Significant Unobservable Inputs (Level 3) | Maximum | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Unobservable inputs, estimated selling costs (as a percent) | 10.00% | 10.00% | |
Impaired loans | Discounted Appraisals | Nonrecurring | Significant Unobservable Inputs (Level 3) | Weighted Average | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Unobservable inputs, estimated selling costs (as a percent) | 10.00% | 10.00% | |
Other real estate | Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Other real estate | $ 359 | $ 4,993 | |
Other real estate | Discounted Appraisals | Nonrecurring | Significant Unobservable Inputs (Level 3) | Minimum | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Unobservable inputs, estimated selling costs (as a percent) | 0.00% | 0.00% | |
Other real estate | Discounted Appraisals | Nonrecurring | Significant Unobservable Inputs (Level 3) | Maximum | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Unobservable inputs, estimated selling costs (as a percent) | 10.00% | 10.00% | |
Other real estate | Discounted Appraisals | Nonrecurring | Significant Unobservable Inputs (Level 3) | Weighted Average | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Unobservable inputs, estimated selling costs (as a percent) | 9.62% | 9.61% | |
Residential mortgage servicing rights | Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Residential mortgage servicing rights | $ 38,991 | $ 57,895 | |
Residential mortgage servicing rights | Discounted Cash Flows | Nonrecurring | Significant Unobservable Inputs (Level 3) | Minimum | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Unobservable inputs, discount rate (as a percent) | 10.14% | 9.64% | |
Unobservable inputs, prepayment speeds (as a percent) | 6.75% | 7.60% | |
Residential mortgage servicing rights | Discounted Cash Flows | Nonrecurring | Significant Unobservable Inputs (Level 3) | Maximum | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Unobservable inputs, discount rate (as a percent) | 11.63% | 11.13% | |
Unobservable inputs, prepayment speeds (as a percent) | 13.45% | 15.75% | |
Residential mortgage servicing rights | Discounted Cash Flows | Nonrecurring | Significant Unobservable Inputs (Level 3) | Weighted Average | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Unobservable inputs, discount rate (as a percent) | 10.46% | 9.95% | |
Unobservable inputs, prepayment speeds (as a percent) | 6.90% | 8.19% | |
SBA servicing rights | Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
SBA servicing rights | $ 0 | $ 1,027 | |
SBA servicing rights | Discounted Cash Flows | Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Unobservable inputs, discount rate (as a percent) | 13.12% | ||
Unobservable inputs, prepayment speeds (as a percent) | 11.33% | ||
IRLCs | Recurring | Significant Unobservable Inputs (Level 3) | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
IRLCs | $ 6,497 | $ 3,439 | |
IRLCs | Pricing Model | Recurring | Significant Unobservable Inputs (Level 3) | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Unobservable inputs, pull-through rate (as a percent) | 84.50% | 84.50% | |
Forward commitments | Recurring | Significant Unobservable Inputs (Level 3) | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Forward commitments | $ (558) | $ 38 | |
Forward commitments | Investor Pricing | Recurring | Significant Unobservable Inputs (Level 3) | Minimum | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Unobservable inputs, pricing spreads (as a percent) | 98.70% | 90.00% | |
Forward commitments | Investor Pricing | Recurring | Significant Unobservable Inputs (Level 3) | Maximum | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Unobservable inputs, pricing spreads (as a percent) | 104.52% | 104.94% | |
Forward commitments | Investor Pricing | Recurring | Significant Unobservable Inputs (Level 3) | Weighted Average | |||
Significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities | |||
Unobservable inputs, pricing spreads (as a percent) | 102.25% | 102.64% | |
[1] | Includes mortgage-related IRLCs and derivative financial instruments to hedge interest rate risk. IRLCs are recorded on a gross basis. |
Fair Value of Financial Instr58
Fair Value of Financial Instruments - Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance of Loans Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Difference Between Aggregate Fair Value And Aggregate Unpaid Principal Balance [Abstract] | |||
Loans held-for-sale, Aggregate Fair Value | $ 355,515 | $ 269,140 | |
Loans held-for-sale, Aggregate Unpaid Principal Balance Under FVO | 348,797 | 262,315 | |
Loans held-for-sale, Aggregate Fair Value Over Unpaid Principal | $ 6,718 | $ 6,825 | |
Period for difference between aggregate fair value and the aggregate unpaid principal balance of loans that are past due | 90 days | ||
Fair value of gain (loss) related to mortgage banking activities | $ (107) | $ 3,300 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Difference Between Aggregate Fair Value And Aggregate Unpaid Principal Balance [Abstract] | |||
Loans held-for-sale, Aggregate Fair Value | 165 | ||
Loans held-for-sale, Aggregate Unpaid Principal Balance Under FVO | 177 | ||
Loans held-for-sale, Aggregate Fair Value Over Unpaid Principal | $ (12) |
Fair Value of Financial Instr59
Fair Value of Financial Instruments - Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Financial instruments (assets): | |||
Cash and cash equivalents | $ 200,496 | $ 186,302 | |
Investment securities available-for-sale | 0 | 0 | |
Investment securities held-to-maturity | 0 | 0 | |
Total loans | 0 | 0 | |
Financial instruments (liabilities): | |||
Noninterest-bearing demand deposits | 0 | 0 | |
Interest-bearing deposits | 0 | 0 | |
Short-term borrowings | 0 | 0 | |
Subordinated debt | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Financial instruments (assets): | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities available-for-sale | 124,576 | 120,121 | |
Investment securities held-to-maturity | 16,970 | 17,684 | |
Total loans | 355,515 | 269,140 | |
Financial instruments (liabilities): | |||
Noninterest-bearing demand deposits | 0 | 0 | |
Interest-bearing deposits | 0 | 0 | |
Short-term borrowings | 337,795 | 150,580 | |
Subordinated debt | 112,610 | 114,402 | |
Significant Unobservable Inputs (Level 3) | |||
Financial instruments (assets): | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities available-for-sale | 0 | 0 | |
Investment securities held-to-maturity | 3,977 | 4,001 | |
Total loans | 3,499,485 | 3,466,839 | |
Financial instruments (liabilities): | |||
Noninterest-bearing demand deposits | 1,152,315 | 1,125,598 | |
Interest-bearing deposits | 2,749,553 | 2,739,204 | |
Short-term borrowings | 0 | 0 | |
Subordinated debt | 0 | 0 | |
Carrying Amount | |||
Financial instruments (assets): | |||
Cash and cash equivalents | 200,496 | 186,302 | |
Investment securities available-for-sale | 124,576 | 120,121 | |
Investment securities held-to-maturity | 21,342 | 21,689 | |
Total loans | [1] | 4,108,668 | 3,908,949 |
Financial instruments (liabilities): | |||
Noninterest-bearing demand deposits | 1,152,315 | 1,125,598 | |
Interest-bearing deposits | 2,748,092 | 2,741,602 | |
Short-term borrowings | 337,795 | 150,580 | |
Subordinated debt | 120,620 | 120,587 | |
Total Fair Value | |||
Financial instruments (assets): | |||
Cash and cash equivalents | 200,496 | 186,302 | |
Investment securities available-for-sale | 124,576 | 120,121 | |
Investment securities held-to-maturity | 20,947 | 21,685 | |
Total loans | [1] | 3,855,000 | 3,735,979 |
Financial instruments (liabilities): | |||
Noninterest-bearing demand deposits | 1,152,315 | 1,125,598 | |
Interest-bearing deposits | 2,749,553 | 2,739,204 | |
Short-term borrowings | 337,795 | 150,580 | |
Subordinated debt | $ 112,610 | $ 114,402 | |
[1] | Includes $355,515 and $269,140 in residential mortgage loans held-for-sale at March 31, 2018, and December 31, 2017, respectively, for which the Company has elected FVO. |
Derivative Financial Instrume60
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gain (loss) on mortgage-related derivatives | $ 2,500 | $ (369) |
Derivative Financial Instrume61
Derivative Financial Instruments - Derivative Positions (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Company's derivative positions [Abstract] | ||
Contract or notional amount of derivatives | $ 976,143 | $ 602,682 |
Forward rate commitments | ||
Company's derivative positions [Abstract] | ||
Contract or notional amount of derivatives | 653,027 | 430,389 |
Interest rate lock commitments | ||
Company's derivative positions [Abstract] | ||
Contract or notional amount of derivatives | $ 323,116 | $ 172,293 |
Earnings Per Common Share - Cal
Earnings Per Common Share - Calculation of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Earnings Per Share [Abstract] | |||
Net income | $ 11,767 | $ 10,527 | |
Weighted average common shares outstanding - basic (in shares) | [1] | 27,011 | 26,335 |
Effect of dilutive stock options and warrants (in shares) | [2] | 110 | 142 |
Weighted average common shares outstanding – diluted (in shares) | 27,121 | 26,477 | |
EPS: | |||
Basic (in dollars per share) | $ 0.44 | $ 0.40 | |
Diluted (in dollars per share) | $ 0.43 | $ 0.40 | |
[1] | Includes participating securities related to unvested restricted stock awards, net of forfeitures during the period, if any | ||
[2] | Effect of dilutive stock options includes the dilutive effect of additional potential common shares issuable under contracts outstanding during each respective period |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Common stock options excluded as potentially dilutive (in shares) | 612,500 | 0 |
Certain Transfers of Financia64
Certain Transfers of Financial Assets - Carrying Value of Loan Servicing Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Servicing Assets at Fair Value [Line Items] | ||||
Servicing rights | $ 119,553 | $ 112,615 | ||
Residential mortgage | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing rights | 107,943 | 100,679 | $ 91,387 | $ 86,131 |
SBA loan servicing rights | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing rights | 4,737 | 4,818 | ||
Indirect automobile | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Servicing rights | $ 6,873 | $ 7,118 |
Certain Transfers of Financia65
Certain Transfers of Financial Assets - Narrative (Details) $ in Thousands | 3 Months Ended | 60 Months Ended | ||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2018USD ($)loan | Dec. 31, 2017USD ($) | |
Servicing Assets at Fair Value [Line Items] | ||||
Residential mortgage loans sold | loan | 49,100 | |||
Principal balance of loans sold in secondary market | $ 12,200,000 | |||
Mortgage recourse liability | $ 1,400 | $ 1,400 | $ 1,400 | |
Residential mortgage | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Sale of loans with unpaid principal | 431,600 | $ 496,900 | ||
Gain (loss) on sale of loans | 17,600 | 18,700 | ||
Servicing fee, net of amortization and impairment | 6,200 | 5,300 | ||
SBA | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Sale of loans with unpaid principal | 10,700 | 14,000 | ||
Gain (loss) on sale of loans | 586 | 1,200 | ||
Servicing fee, net of amortization and impairment | 571 | 621 | ||
Indirect automobile | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Sale of loans with unpaid principal | 86,000 | 192,400 | ||
Gain (loss) on sale of loans | 1,000 | 3,200 | ||
Servicing fee, net of amortization and impairment | $ 2,000 | $ 2,100 |
Certain Transfers of Financia66
Certain Transfers of Financial Assets - Activity in the Company's Mortgage Servicing Rights and Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Residential Mortgage Servicing Rights [Roll Forward] | |||
Beginning carrying value, net | $ 112,615 | ||
Amortization | (48) | $ (2,475) | |
Ending carrying value, net | 119,553 | ||
Residential mortgage | |||
Residential Mortgage Servicing Rights [Roll Forward] | |||
Beginning carrying value, net | 100,679 | 86,131 | |
Additions | 6,146 | 6,425 | |
Amortization | (3,426) | (3,158) | |
(Impairment) / recoveries, net | [1] | 4,544 | 1,989 |
Ending carrying value, net | 107,943 | 91,387 | |
Residential Mortgage Servicing Rights Impairment [Roll Forward] | |||
Beginning balance | 9,818 | 9,152 | |
Additions | 0 | 57 | |
Recoveries | (4,544) | (2,046) | |
Ending balance | $ 5,274 | $ 7,163 | |
[1] | Principally reflects changes in market interest rates and prepayment speeds, both of which affect future cash flow projections |
Certain Transfers of Financia67
Certain Transfers of Financial Assets - Estimates and Assumptions Used in Determining Impairment of Mortgage Servicing Rights (Details) - Residential Mortgage Servicing Rights - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Assumptions and estimates in determining the impairment of capitalized MSRs | ||
Fair Value | $ 113,237 | $ 103,725 |
Composition of loans serviced for others (as a percent) | 100.00% | 100.00% |
Remaining term (years) | 25 years 8 months 15 days | 25 years 8 months 15 days |
Modeled prepayment speed (as a percent) | 6.94% | 8.19% |
Decline in fair value due to a 10% adverse change | $ (3,426) | $ (3,497) |
Decline in fair value due to a 20% adverse change | (6,610) | (6,796) |
Decline in fair value due to a 10% adverse change | (5,154) | (4,299) |
Decline in fair value due to a 20% adverse change | $ (9,794) | $ (8,223) |
Weighted Average | ||
Assumptions and estimates in determining the impairment of capitalized MSRs | ||
Discount rate (as a percent) | 10.46% | 9.95% |
Fixed-rate | ||
Assumptions and estimates in determining the impairment of capitalized MSRs | ||
Composition of loans serviced for others (as a percent) | 99.58% | 99.55% |
Adjustable-rate | ||
Assumptions and estimates in determining the impairment of capitalized MSRs | ||
Composition of loans serviced for others (as a percent) | 0.42% | 0.45% |
Certain Transfers of Financia68
Certain Transfers of Financial Assets - Asset Quality of Residential Mortgage Loans (Details) - Residential mortgage | 3 Months Ended | |
Mar. 31, 2018USD ($) | ||
Servicing Assets at Fair Value [Line Items] | ||
Unpaid Principal Balance | $ 9,958,781,000 | |
Delinquent 30 to 89 days | 113,811,000 | |
Delinquent 90 plus Days | 27,620,000 | |
Net Charge-offs | 0 | |
Serviced for others | ||
Servicing Assets at Fair Value [Line Items] | ||
Unpaid Principal Balance | 9,098,508,000 | |
Delinquent 30 to 89 days | 101,544,000 | |
Delinquent 90 plus Days | 7,046,000 | |
Net Charge-offs | 0 | |
Held-for-sale | ||
Servicing Assets at Fair Value [Line Items] | ||
Unpaid Principal Balance | 348,797,000 | |
Delinquent 30 to 89 days | 255,000 | [1] |
Delinquent 90 plus Days | 177,000 | [1] |
Net Charge-offs | 0 | |
Mortgage loans delinquent 90 plus days, at fair value | 109,000 | |
Held-for-investment | ||
Servicing Assets at Fair Value [Line Items] | ||
Unpaid Principal Balance | 511,476,000 | |
Delinquent 30 to 89 days | 12,012,000 | [2] |
Delinquent 90 plus Days | 20,397,000 | [2] |
Net Charge-offs | 0 | |
Loans Insured or Guaranteed by US Government Authorities | Held-for-investment | ||
Servicing Assets at Fair Value [Line Items] | ||
Mortgage loans delinquent 30 to 89 days | 4,860 | |
Mortgage loans delinquent 90 plus days | 16,962 | |
Maturity 30 to 89 Days | Held-for-sale | ||
Servicing Assets at Fair Value [Line Items] | ||
Loans held for sale, applicable discount | $ 0 | |
[1] | The fair value of the amount that was 90+ days past due was $109,000 after applicable discount recorded under the fair value option for mortgage loans held-for-sale. There were no applicable discounts for loans held-for-sale that were 30-89 days past due. | |
[2] | Delinquent loans held-for-investment include repurchased loans covered by government agency guarantees that were 30-89 days past due and 90+ days past due of $4,860 and $16,962, respectively. |
Certain Transfers of Financia69
Certain Transfers of Financial Assets - Activity in SBA Loan Servicing Rights and Impairment (Details) - SBA loan servicing rights - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
SBA Loan Servicing Rights [Roll Forward] | |||
Beginning carrying value, net | $ 4,818 | $ 5,707 | |
Additions | 271 | 391 | |
Amortization | (483) | (416) | |
(Impairment) / recoveries, net | [1] | 131 | (20) |
Ending carrying value, net | 4,737 | 5,662 | |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | |||
Beginning balance | 134 | 0 | |
Additions | 0 | 20 | |
Recoveries | (131) | 0 | |
Ending balance | $ 3 | $ 20 | |
[1] | Principally reflects changes in market interest rates and prepayment speeds, both of which affect future cash flow projections For the Three Months Ended March 31,(in thousands) 2018 2017SBA servicing rights impairment Beginning balance $134 $—Additions — 20Recoveries (131) —Ending balance $3 $20 |
Certain Transfers of Financia70
Certain Transfers of Financial Assets - Estimates and Assumptions Used in Determining Impairment of SBA Loan Servicing Rights (Details) - SBA loan servicing rights - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Assumptions and estimates in determining the impairment of capitalized SBA loan servicing rights | ||
Fair Value | $ 4,923 | $ 5,275 |
Composition of loans serviced for others (as a percent) | 100.00% | 100.00% |
Remaining term (years) | 18 years 9 months 22 days | 18 years 10 months 28 days |
Prepayment speed | 11.33% | 11.33% |
Decline in fair value due to a 10% adverse change | $ (171) | $ (181) |
Decline in fair value due to a 20% adverse change | (332) | (351) |
Decline in fair value due to a 10% adverse change | (195) | (199) |
Decline in fair value due to a 20% adverse change | $ (376) | $ (384) |
Weighted Average | ||
Assumptions and estimates in determining the impairment of capitalized SBA loan servicing rights | ||
Discount rate (as a percent) | 13.63% | 13.13% |
Fixed Rate Residential Mortgage | ||
Assumptions and estimates in determining the impairment of capitalized SBA loan servicing rights | ||
Composition of loans serviced for others (as a percent) | 0.00% | 0.00% |
Adjustable Rate Residential Mortgage | ||
Assumptions and estimates in determining the impairment of capitalized SBA loan servicing rights | ||
Composition of loans serviced for others (as a percent) | 100.00% | 100.00% |
Certain Transfers of Financia71
Certain Transfers of Financial Assets - Asset Quality of SBA Loans (Details) - SBA loan servicing rights $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Asset quality of SBA loans | |
Unpaid Principal Balance | $ 412,992 |
Delinquent 30 to 89 days | 19,829 |
Delinquent 90 plus Days | 5,426 |
Net Charge-offs | 100 |
Serviced for others | |
Asset quality of SBA loans | |
Unpaid Principal Balance | 248,232 |
Delinquent 30 to 89 days | 14,642 |
Delinquent 90 plus Days | 1,422 |
Net Charge-offs | 0 |
Held-for-sale | |
Asset quality of SBA loans | |
Unpaid Principal Balance | 19,785 |
Delinquent 30 to 89 days | 0 |
Delinquent 90 plus Days | 0 |
Net Charge-offs | 0 |
Held-for-investment | |
Asset quality of SBA loans | |
Unpaid Principal Balance | 144,975 |
Delinquent 30 to 89 days | 5,187 |
Delinquent 90 plus Days | 4,004 |
Net Charge-offs | $ 100 |
Certain Transfers of Financia72
Certain Transfers of Financial Assets - Activity in Indirect Automobile Loan Servicing Rights (Details) - Indirect automobile loan servicing rights - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Indirect Loan Servicing Rights [Roll Forward] | ||
Beginning carrying value | $ 7,118 | $ 7,457 |
Additions | 569 | 1,403 |
Amortization | (814) | (870) |
Ending carrying value | $ 6,873 | $ 7,990 |
Certain Transfers of Financia73
Certain Transfers of Financial Assets - Estimates and Assumptions Used in Determining Impairment of Indirect Automobile Loan Servicing Rights (Details) - Indirect automobile loan servicing rights - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Servicing Assets at Amortized Value [Line Items] | ||
Fair value | $ 6,961 | $ 7,436 |
Composition of loans serviced for others (as a percent) | 100.00% | 100.00% |
Remaining term (years) | 4 years 4 months 26 days | 4 years 6 months 3 days |
Prepayment speed | 20.59% | 20.59% |
Decline in fair value due to a 10% adverse change | $ (174) | $ (192) |
Decline in fair value due to a 20% adverse change | (343) | (377) |
Decline in fair value due to a 10% adverse change | (67) | (69) |
Decline in fair value due to a 20% adverse change | $ (133) | $ (137) |
Weighted Average | ||
Servicing Assets at Amortized Value [Line Items] | ||
Discount rate (as a percent) | 7.72% | 7.18% |
Fixed-rate | ||
Servicing Assets at Amortized Value [Line Items] | ||
Composition of loans serviced for others (as a percent) | 100.00% | 100.00% |
Adjustable-rate | ||
Servicing Assets at Amortized Value [Line Items] | ||
Composition of loans serviced for others (as a percent) | 0.00% | 0.00% |
Certain Transfers of Financia74
Certain Transfers of Financial Assets - Asset Quality of Indirect Automobile Loans (Details) - Indirect automobile $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Servicing Assets at Fair Value [Line Items] | |
Unpaid Principal Balance | $ 2,788,413 |
Delinquent 30 to 89 days | 5,367 |
Delinquent 90 plus Days | 5,943 |
Net Charge-offs | 2,275 |
Serviced for others | |
Servicing Assets at Fair Value [Line Items] | |
Unpaid Principal Balance | 1,018,743 |
Delinquent 30 to 89 days | 2,075 |
Delinquent 90 plus Days | 2,756 |
Net Charge-offs | 1,128 |
Held-for-sale | |
Servicing Assets at Fair Value [Line Items] | |
Unpaid Principal Balance | 50,000 |
Delinquent 30 to 89 days | 0 |
Delinquent 90 plus Days | 0 |
Net Charge-offs | 0 |
Held-for-investment | |
Servicing Assets at Fair Value [Line Items] | |
Unpaid Principal Balance | 1,719,670 |
Delinquent 30 to 89 days | 3,292 |
Delinquent 90 plus Days | 3,187 |
Net Charge-offs | $ 1,147 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 4,437 | $ 4,135 |
Noninterest income, other operating income | 32,696 | 33,235 |
Total noninterest income | 37,133 | 37,370 |
Service Charges on Deposit Accounts | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 1,472 | 1,455 |
Other Fees and Charges | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 2,035 | 1,791 |
Trust and Wealth Management | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 532 | 288 |
Insurance Commissions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 398 | 300 |
Gain (Loss) on ORE | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 0 | 301 |
Total Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 398 | $ 601 |