SEACOAST BANKING CORP OF FLORIDA, 10-Q filed on 8/8/2017
Quarterly Report
v3.7.0.1
Document And Entity Information
6 Months Ended
Jun. 30, 2017
shares
Document Information [Line Items]  
Document Type 10-Q
Amendment Flag false
Document Period End Date Jun. 30, 2017
Document Fiscal Year Focus 2017
Document Fiscal Period Focus Q2
Entity Registrant Name SEACOAST BANKING CORP OF FLORIDA
Entity Central Index Key 0000730708
Current Fiscal Year End Date --12-31
Entity Filer Category Accelerated Filer
Trading Symbol SBCF
Entity Common Stock, Shares Outstanding 43,458,973
v3.7.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
ASSETS    
Cash and due from banks $ 88,133 $ 82,520
Interest bearing deposits with other banks 20,064 27,124
Total cash and cash equivalents 108,197 109,644
Time deposits with other banks 16,426 0
Securities:    
Available for sale (at fair value) 1,016,744 950,503
Held to maturity (fair value: $397,357 at June 30, 2017, and $369,881 at December 31, 2016) 397,096 372,498
Total Securities 1,413,840 1,323,001
Loans held for sale (at fair value) 22,262 15,332
Loans [1] 3,330,075 2,879,536
Less: Allowance for loan losses (26,000) (23,400)
NET LOANS 3,304,075 2,856,136
Bank premises and equipment, net 56,765 58,684
Other real estate owned 8,497 9,949
Goodwill 101,739 64,649
Other intangible assets, net 16,941 14,572
Bank owned life insurance 88,003 84,580
Net deferred income taxes 52,195 60,818
Other assets 92,355 83,567
TOTAL ASSETS 5,281,295 4,680,932
LIABILITIES    
Deposits 3,975,458 3,523,245
Federal funds purchased and securities sold under agreements to repurchase, maturing within 30 days 167,558 204,202
Federal Home Loan Bank (FHLB) borrowings 395,000 415,000
Subordinated debt 70,381 70,241
Other liabilities 95,521 32,847
TOTAL LIABILITIES 4,703,918 4,245,535
SHAREHOLDERS' EQUITY    
Common stock, par value $0.10 per share, authorized 60,000,000 shares, issued 43,550,182 and outstanding 43,458,973 shares at June 30, 2017 and issued 38,090,568 and outstanding 38,021,835 shares at December 31, 2016 4,339 3,802
Other shareholders' equity 573,038 431,595
TOTAL SHAREHOLDERS' EQUITY 577,377 435,397
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 5,281,295 $ 4,680,932
[1] Net loan balances as of June 30, 2017 and December 31, 2016 include deferred costs of $10.6 million for each period presented, respectively.
v3.7.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
Held for Investment, Fair Value, Total $ 397,357 $ 369,881
Common stock, par value $ 0.10 $ 0.10
Common stock, shares authorized 60,000,000 60,000,000
Common stock, shares issued 43,550,182 38,090,568
Common stock, shares outstanding 43,458,973 38,021,835
v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Interest and fees on loans $ 38,209 $ 29,244 $ 70,100 $ 55,278
Interest and dividends on securities 8,585 6,902 16,959 12,749
Interest on interest bearing deposits and other investments 604 433 1,114 723
TOTAL INTEREST INCOME 47,398 36,579 88,173 68,750
Interest on deposits 1,668 1,238 2,858 2,155
Interest on borrowed money 1,574 848 2,994 1,880
TOTAL INTEREST EXPENSE 3,242 2,086 5,852 4,035
NET INTEREST INCOME 44,156 34,493 82,321 64,715
Provision for loan losses 1,401 662 2,705 861
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 42,755 33,831 79,616 63,854
Noninterest income        
Other income 10,467 9,111 20,372 17,741
Securities gains, net (includes net gains (losses) of $23 and ($19) in other comprehensive income reclassifications for the three months ended June 30, 2017 and 2016, respectively, and net gains of $23 and $28 for the six months ended June 30, 2017 and 2016, respectively) 21 47 21 136
TOTAL NONINTEREST INCOME 10,488 9,158 20,393 17,877
TOTAL NONINTEREST EXPENSES 41,625 34,808 76,371 67,149
INCOME BEFORE INCOME TAXES 11,618 8,181 23,638 14,582
Provision for income taxes (includes $9 and $(7) in income tax provision (benefit) from reclassification items for the three months ended June 30, 2017 and 2016, respectively, and $9 and $11 in income tax provision for the six months ended June 30, 2017 and 2016, respectively). 3,942 2,849 8,036 5,284
NET INCOME $ 7,676 $ 5,332 $ 15,602 $ 9,298
PER SHARE COMMON STOCK:        
Net income diluted (in dollars per share) $ 0.18 $ 0.14 $ 0.38 $ 0.25
Net income basic (in dollars per share) 0.18 0.14 0.38 0.26
Cash dividends declared (in dollars per share) $ 0.00 $ 0.00 $ 0.00 $ 0.00
Average shares outstanding-diluted (in shares) 43,556,285 38,141,550 41,538,769 36,797,259
Average shares outstanding-basic (in shares) 42,841,152 37,470,071 40,851,273 36,159,473
v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Reclassification adjustment for securities gains included in net income $ 23 $ (19) $ 23 $ 28
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax $ 9 $ (7) $ 9 $ 11
v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
NET INCOME $ 7,676 $ 5,332 $ 15,602 $ 9,298
Other comprehensive income:        
Unrealized gains on securities available for sale 5,601 8,953 8,776 16,597
Amortization of unrealized losses on securities transferred to held to maturity, net 122 122 244 244
Reclassification adjustment for gains included in net income (21) (47) (21) (136)
Income tax effect on other comprehensive income (2,199) (3,485) (3,467) (6,362)
COMPREHENSIVE INCOME $ 11,179 $ 10,875 $ 21,134 $ 19,641
v3.7.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 15,602 $ 9,298
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 2,677 2,235
Amortization of premiums and discounts on securities, net 1,838 2,385
Other amortization and accretion, net (429) (1,110)
Stock based compensation 2,540 1,807
Origination of loans designated for sale (117,379) (83,207)
Sale of loans designated for sale 113,527 88,760
Provision for loan losses 2,705 861
Deferred income taxes 7,338 4,886
Gains on sale of securities (21) (136)
Gains on sale of loans (3,078) (2,502)
Gains on sale of other real estate owned (212) (252)
Losses and writedowns on disposition of fixed assets 2,316 1,937
Changes in operating assets and liabilities, net of effects from acquired companies:    
Net decrease (increase) in other assets 1,347 (3,877)
Net (decrease) increase in other liabilities (2,634) 5,105
Net cash provided by operating activities 26,137 26,190
CASH FLOWS FROM INVESTING ACTIVITIES    
Maturity of securities available for sale 125,115 59,151
Maturity of securities held to maturity 42,883 15,584
Proceeds from sale of securities available for sale 3,820 12,211
Purchases of securities available for sale (142,062) (149,969)
Purchases of securities held to maturity (49,963) (213,766)
Maturity of time deposits with other banks 847 0
Net new loans and principal repayments (198,080) (129,832)
Proceeds from the sale of other real estate owned 3,324 4,207
Proceeds from sale of FHLB and Federal Reserve Bank stock 14,832 1,700
Purchase of FHLB and Federal Reserve Stock (15,012) (9,297)
Purchase of VISA Class B stock (6,180) 0
Net cash from bank acquisition 30,233 260,471
Additions to bank premises and equipment (2,979) (3,309)
Net cash used in investing activities (193,222) (152,849)
CASH FLOWS FROM FINANCING ACTIVITIES    
Net increase in deposits 166,863 5,421
Net increase (decrease) in federal funds purchased and repurchase agreements (36,644) 11,382
Net increase (decrease) in FHLB borrowings (20,000) 151,000
Early redemption of FHLB borrowings 0 (50,000)
Issuance of common stock, net of related expense 55,641 0
Stock based employee benefit plans (222) (409)
Dividends paid 0 0
Net cash provided by financing activities 165,638 117,394
Net decrease in cash and cash equivalents (1,447) (9,265)
Cash and cash equivalents at beginning of period 109,644 136,067
Cash and cash equivalents at end of period 108,197 126,802
Supplemental disclosure of non cash investing activities:    
Transfers from loans to other real estate owned 448 2,806
Transfers from bank premises to other real estate owned 1,212 3,175
Purchase of securities on trade date $ 63,926 $ 1,198
v3.7.0.1
BASIS OF PRESENTATION
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
BASIS OF PRESENTATION
NOTE A — BASIS OF PRESENTATION
 
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six-month period ended June 30 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 or any other period. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2016.
 
Use of Estimates
 
The preparation of these condensed consolidated financial statements required the use of certain estimates by management in determining the Company’s assets, liabilities, revenues and expenses. Actual results could differ from those estimates.
 
Specific areas, among others, requiring the application of management’s estimates include determination of the allowance for loan losses, the valuation of investment securities available for sale, fair value of impaired loans, contingent liabilities, fair value of other real estate owned, and the valuation of deferred tax assets. Actual results could differ from those estimates.
v3.7.0.1
RECENTLY ISSUED ACCOUNTING STANDARDS, Not adopted as of June 30, 2017
6 Months Ended
Jun. 30, 2017
Accounting Changes and Error Corrections [Abstract]  
RECENTLY ISSUED ACCOUNTING STANDARDS
NOTE B — RECENTLY ISSUED ACCOUNTING STANDARDS, Not adopted as of June 30, 2017
 
The following provides a brief description of accounting standards that have been issued but are not yet adopted that could affect the Company's financial statements:
 
In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-09, clarifying when changes to the terms of share-based awards, such as value, vesting conditions or classification of the awards, should be accounted for as modifications. All the disclosures about modifications that are required today would need to be made, along with disclosing any change (or no change) in compensation expense. This guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted. Adoption of this standard is being evaluated as to its effect on the Company’s operating results and financial condition.
 
In March 2017, the FASB issued ASU 2017-08, requiring entities to amortize premiums on certain purchased callable debt securities to their earliest call date. The accounting for purchased callable debt securities held at a discount did not change. Amortizing the premium to the earliest call date generally aligns interest income recognition with the economics of instruments. This guidance requires a modified retrospective transition under which a cumulative adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. This guidance is effective for fiscal years beginning after December 15, 2018. Adoption of this standard is being evaluated as to its effect on the Company’s operating results or financial condition.
 
In January 2017, the FASB issued ASU 2017-04, eliminating Step 2 from the goodwill impairment test. Under the amendments to the guidance, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The loss recognized, however, should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable.  The guidance is effective for annual periods or any interim goodwill impairment tests beginning after December 15, 2019 using a prospective transition method. Early adoption is permitted. Adoption of this standard is being evaluated as to its effect on the Company’s operating results or financial condition.
 
In August and November 2016, the FASB issued final guidance via ASU 2016-15 and ASU 2016-18, which address classification of certain cash receipts and cash payments, including changes in restricted cash, in the statement of cash flows. The guidance may change how an entity classifies certain cash receipts and cash payments on its statement of cash flows, the purpose being to reduce diversity in practice. The Company is evaluating the impact of ASU 2016-15 and 2016-18 on the Company’s statement of cash flows which will generally be applied retrospectively for fiscal years beginning after December 15, 2017.
 
In June 2016, the FASB issued ASU 2016-13 for “Measurement of Credit Losses on Financial Instruments” to replace the incurred loss impairment methodology with a current expected credit loss methodology for financial instruments measured at amortized cost and other commitments to extend credit. Expected credit losses reflect losses over the remaining contractual life of an asset, considering the effect of voluntary prepayments and considering available information about the collectability of cash flows, including information about past events, current conditions, and supportable forecasts. The resultant allowance for credit losses reflects the portion of the amortized cost basis that the entity does not expect to collect. Additional quantitative and qualitative disclosures are required upon adoption. The Company is assessing current loan loss estimation models and processes to determine the need for changes as part of its evaluation of the impact of this new accounting guidance. Adoption is required January 1, 2020, with early adoption permitted on January 1, 2019.
 
In March 2016, under ASU 2016-04, “Liabilities – Extinguishments of Liabilities, Breakage for Certain Prepaid Stored-Value Products” the FASB intends for entities to recognize liabilities for the sale of prepaid stored value products redeemable for goods, services, or cash. This guidance aligns recognition of breakage for these liabilities in a way consistent with how gift card breakage will be recognized. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements. Effective date for implementation of the guidance is for annual periods after December 15, 2018.
 
In February 2016, the FASB amended existing guidance related to the recognition of lease assets and lease liabilities on the balance sheet and disclosures of key information about leasing arrangements, under ASU 2016-02. The guidance requires all parties to classify leases to determine how to recognize lease-related revenue and expense. The amendment requires lessees to put most leases on their balance sheet and record expenses to the income statement. Changes in the guidance eliminate real estate centric provisions for sale-leaseback transactions, including initial direct costs and lease execution costs for all entities. For lessors, the new FASB standard modifies classification criteria and accounting for sales type and direct financing leases. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements. The amended accounting guidance is applicable to periods after December 15, 2018 and interim periods within that year.
 
In January 2016, the FASB issued ASU 2016-01 for “Recognition and Measurement of Financial Assets and Liabilities.” The ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The update: a) requires equity investments (except those accounted for under the equity method of accounting) to be measured at fair value and recognized in net income, b) simplifies impairment assessments of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, and if impaired requires measurement of the investment at fair value, c) eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value, d) requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, e) requires an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements, and g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The ASU is effective for fiscal years beginning after December 15, 2017, and must be adopted on a modified retrospective basis, including interim periods within those fiscal years. The adoption of ASU 2016-01 is being evaluated for its impact on the Company’s operating results and financial condition.
 
In May 2014, the FASB issued ASU 2014-09, “Revenue Recognition – Revenue from Contracts with Customers.” The ASU is a converged standard between the FASB and the IASB that provides a single comprehensive revenue recognition model for all contracts with customers across transactions and industries. The primary objective of the ASU is revenue recognition that represents the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue associated with loans and securities is not in the scope of the new guidance, and based the Company’s evaluation to date we do not expect the adoption to have a significant impact on the Company’s operating results or financial condition. The Company plans to adopt the new guidance on January 1, 2018.
v3.7.0.1
BASIC AND DILUTED EARNINGS PER COMMON SHARE
6 Months Ended
Jun. 30, 2017
Earnings Per Share [Abstract]  
BASIC AND DILUTED EARNINGS PER COMMON SHARE
NOTE C — BASIC AND DILUTED EARNINGS PER COMMON SHARE
 
For each of the three month periods ended June 30, 2017 and 2016, options to purchase 59,000 shares and 127,000 shares, respectively, were antidilutive and accordingly were excluded in determining diluted earnings per share.
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
(Dollars in thousands, except per share data)
 
2017
 
2016
 
2017
 
2016
 
Basic:
 
 
 
 
 
 
 
 
 
 
 
 
 
Income available to common shareholders
 
$
7,676
 
$
5,332
 
$
15,602
 
$
9,298
 
Average basic shares outstanding
 
 
42,841,152
 
 
37,470,071
 
 
40,851,273
 
 
36,159,473
 
Basic earnings per share
 
$
0.18
 
$
0.14
 
$
0.38
 
$
0.26
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
 
 
 
 
 
 
Income available to common shareholders
 
$
7,676
 
$
5,332
 
$
15,602
 
$
9,298
 
Average basic shares outstanding
 
 
42,841,152
 
 
37,470,071
 
 
40,851,273
 
 
36,159,473
 
Restricted stock and stock options
 
 
715,133
 
 
671,479
 
 
687,496
 
 
637,786
 
Average diluted shares outstanding
 
 
43,556,285
 
 
38,141,550
 
 
41,538,769
 
 
36,797,259
 
Diluted earnings per share
 
$
0.18
 
$
0.14
 
$
0.38
 
$
0.25
 
 
The diluted impact of restricted stock and stock options is calculated under the treasury method.
v3.7.0.1
SECURITIES
6 Months Ended
Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
SECURITIES
NOTE D — SECURITIES
 
The amortized cost, unrealized gains and losses, and fair value of securities available for sale and held to maturity at June 30, 2017 and December 31, 2016 are summarized as follows:
 
 
 
June 30, 2017
 
 
 
Gross
 
Gross
 
Gross
 
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Fair
 
(Dollars in thousands)
 
Cost
 
Gains
 
Losses
 
Value
 
SECURITIES AVAILABLE FOR SALE
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. Government Sponsored Entities
 
$
10,907
 
$
300
 
$
0
 
$
11,207
 
Mortgage backed securities of U.S. Government Sponsored Entities
 
 
291,482
 
 
1,250
 
 
(2,632)
 
 
290,100
 
Collateralized mortgage obligations of U.S. Government Sponsored Entities
 
 
217,634
 
 
614
 
 
(3,951)
 
 
214,297
 
Commercial mortgage backed securities of U.S. Government Sponsored Entities
 
 
22,304
 
 
506
 
 
(9)
 
 
22,801
 
Private mortgage backed securities
 
 
32,860
 
 
864
 
 
(92)
 
 
33,632
 
Private collateralized mortgage obligations
 
 
55,828
 
 
616
 
 
(488)
 
 
55,956
 
Collateralized loan obligations
 
 
222,725
 
 
455
 
 
(41)
 
 
223,139
 
Obligations of state and political subdivisions
 
 
62,847
 
 
938
 
 
(385)
 
 
63,400
 
Corporate and other debt securities
 
 
70,930
 
 
676
 
 
(168)
 
 
71,438
 
Private commercial mortgage backed securities
 
 
30,780
 
 
189
 
 
(195)
 
 
30,774
 
 
 
$
1,018,297
 
$
6,408
 
$
(7,961)
 
$
1,016,744
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SECURITIES HELD TO MATURITY
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage backed securities of U.S. Government Sponsored Entities
 
$
183,877
 
$
1,413
 
$
(959)
 
$
184,331
 
Collateralized mortgage obligations of U.S. Government Sponsored Entities
 
 
135,596
 
 
461
 
 
(1,564)
 
 
134,493
 
Commercial mortgage backed securities of U.S. Government Sponsored Entities
 
 
17,420
 
 
585
 
 
0
 
 
18,005
 
Collateralized loan obligations
 
 
54,325
 
 
378
 
 
0
 
 
54,703
 
Private collateralized mortgage obligations
 
 
5,878
 
 
8
 
 
(61)
 
 
5,825
 
 
 
$
397,096
 
$
2,845
 
$
(2,584)
 
$
397,357
 
 
 
 
December 31, 2016
 
 
 
Gross
 
Gross
 
Gross
 
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Fair
 
(Dollars in thousands)
 
Cost
 
Gains
 
Losses
 
Value
 
SECURITIES AVAILABLE FOR SALE
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. Government Sponsored Entities
 
$
12,073
 
$
255
 
$
0
 
$
12,328
 
Mortgage backed securities of U.S. Government Sponsored Entities
 
 
287,726
 
 
585
 
 
(4,823)
 
 
283,488
 
Collateralized mortgage obligations of U.S. Government Sponsored Entities
 
 
238,805
 
 
314
 
 
(5,065)
 
 
234,054
 
Commercial mortgage backed securities of U.S. Government Sponsored Entities
 
 
22,351
 
 
222
 
 
(28)
 
 
22,545
 
Private mortgage backed securities
 
 
32,780
 
 
0
 
 
(791)
 
 
31,989
 
Private collateralized mortgage obligations
 
 
67,542
 
 
563
 
 
(816)
 
 
67,289
 
Collateralized loan obligations
 
 
124,716
 
 
838
 
 
(665)
 
 
124,889
 
Obligations of state and political subdivisions
 
 
63,161
 
 
622
 
 
(895)
 
 
62,888
 
Corporate and other debt securities
 
 
74,121
 
 
257
 
 
(517)
 
 
73,861
 
Private commercial mortgage backed securities
 
 
37,534
 
 
111
 
 
(473)
 
 
37,172
 
 
 
$
960,809
 
$
3,767
 
$
(14,073)
 
$
950,503
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SECURITIES HELD TO MATURITY
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage backed securities of U.S. Government Sponsored Entities
 
$
159,941
 
$
704
 
$
(1,243)
 
$
159,402
 
Collateralized mortgage obligations of U.S. Government Sponsored Entities
 
 
147,208
 
 
386
 
 
(2,630)
 
 
144,964
 
Commercial mortgage backed securities of U.S. Government Sponsored Entities
 
 
17,375
 
 
233
 
 
(74)
 
 
17,534
 
Collateralized loan obligations
 
 
41,547
 
 
430
 
 
(314)
 
 
41,663
 
Private collateralized mortgage obligations
 
 
6,427
 
 
0
 
 
(109)
 
 
6,318
 
 
 
$
372,498
 
$
1,753
 
$
(4,370)
 
$
369,881
 
 
Proceeds from sales of securities during the three and six month period ended June 30, 2017 were $3.8 million, with gross gains of $21,000 and no gross losses. Proceeds from sales of securities during the three month period ended June 30, 2016 were $1.7 million, with gross gains of $47,000 and no gross losses. Proceeds from sales of securities during the six month period ended June 30, 2016 were $12.1 million, with gross gains of $147,000 and gross losses of $11,000.
 
In 2014, approximately $158.8 million of investment securities available for sale were transferred into held to maturity. The unrealized holding losses at the date of transfer totaled $3.1 million. The unrealized holding losses at the date of the transfer are amortized over the remaining life of these securities as an adjustment of yield in a manner consistent with the amortization of a discount. The amortization of unrealized holding losses reported in other comprehensive income will offset the effect on interest income of the amortization of the discount. At June 30, 2017, the remaining unrealized holding losses totaled $1.6 million.
 
Securities at June 30, 2017 with a fair value of $183.3 million were pledged as collateral for United States Treasury deposits, other public deposits and trust deposits. Securities with a fair value of $167.6 million were pledged as collateral for repurchase agreements at June 30, 2017.
 
The amortized cost and fair value of securities available for sale and held to maturity at June 30, 2017, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because prepayments of the underlying collateral for these securities may occur, due to the right to call or repay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
 
 
 
Held to Maturity
 
Available for Sale
 
 
 
Amortized
 
Fair
 
Amortized
 
Fair
 
(Dollars in thousands)
 
Cost
 
Value
 
Cost
 
Value
 
Due in less than one year
 
$
0
 
$
0
 
$
10,076
 
$
10,318
 
Due after one year through five years
 
 
3,600
 
 
3,600
 
 
85,126
 
 
85,641
 
Due after five years through ten years
 
 
50,725
 
 
51,103
 
 
233,030
 
 
234,071
 
Due after ten years
 
 
0
 
 
0
 
 
28,636
 
 
28,605
 
 
 
 
54,325
 
 
54,703
 
 
356,868
 
 
358,635
 
Mortgage backed securities of U.S. Government Sponsored Entities
 
 
183,877
 
 
184,331
 
 
291,482
 
 
290,100
 
Collateralized mortgage obligations of  U.S. Government Sponsored Entities
 
 
135,596
 
 
134,493
 
 
217,634
 
 
214,297
 
Commercial mortgage backed securities of U.S. Government Sponsored Entities
 
 
17,420
 
 
18,005
 
 
22,304
 
 
22,801
 
Private mortgage backed securities
 
 
0
 
 
0
 
 
32,860
 
 
33,632
 
Private collateralized mortgage obligations
 
 
5,878
 
 
5,825
 
 
55,828
 
 
55,956
 
Other debt securities
 
 
0
 
 
0
 
 
10,541
 
 
10,549
 
Private commercial mortgage backed securities
 
 
0
 
 
0
 
 
30,780
 
 
30,774
 
 
 
$
397,096
 
$
397,357
 
$
1,018,297
 
$
1,016,744
 
 
The estimated fair value of a security is determined based on market quotations when available or, if not available, by using quoted market prices for similar securities, pricing models or discounted cash flow analyses, using observable market data where available. The tables below indicate the amount of securities with unrealized losses and the period of time for which these losses were outstanding at June 30, 2017 and December 31, 2016, respectively.
 
 
 
June 30, 2017
 
 
 
Less than 12 months
 
12 months or longer
 
Total
 
 
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
(Dollars in thousands)
 
Value
 
Losses
 
Value
 
Losses
 
Value
 
Losses
 
Mortgage backed securities of U.S. Government Sponsored Entities
 
$
205,658
 
$
(2,975)
 
$
48,199
 
$
(616)
 
$
253,857
 
$
(3,591)
 
Collateralized mortgage obligations of U.S. Government Sponsored Entities
 
 
87,147
 
 
(1,438)
 
 
168,324
 
 
(4,077)
 
 
255,471
 
 
(5,515)
 
Commercial mortgage backed securities of U.S. Government Sponsored Entities
 
 
3,119
 
 
(9)
 
 
0
 
 
0
 
 
3,119
 
 
(9)
 
Private mortgage backed securities
 
 
0
 
 
0
 
 
6,864
 
 
(153)
 
 
6,864
 
 
(153)
 
Private collateralized mortgage obligations
 
 
0
 
 
0
 
 
26,129
 
 
(488)
 
 
26,129
 
 
(488)
 
Collateralized loan obligations
 
 
9,966
 
 
(34)
 
 
9,973
 
 
(7)
 
 
19,939
 
 
(41)
 
Obligations of state and political subdivisions
 
 
15,716
 
 
(287)
 
 
2,916
 
 
(98)
 
 
18,632
 
 
(385)
 
Corporate and other debt securities
 
 
12,873
 
 
(164)
 
 
2,388
 
 
(4)
 
 
15,261
 
 
(168)
 
Private commercial mortgage backed securities
 
 
11,126
 
 
(185)
 
 
1,965
 
 
(10)
 
 
13,091
 
 
(195)
 
Total temporarily impaired securities
 
$
345,605
 
$
(5,092)
 
$
266,758
 
$
(5,453)
 
$
612,363
 
$
(10,545)
 
 
 
 
December 31, 2016
 
 
 
Less than 12 months
 
12 months or longer
 
Total
 
 
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
(Dollars in thousands)
 
Value
 
Losses
 
Value
 
Losses
 
Value
 
Losses
 
Mortgage backed securities of U.S. Government Sponsored Entities
 
$
327,759
 
$
(5,991)
 
$
5,387
 
$
(75)
 
$
333,146
 
$
(6,066)
 
Collateralized mortgage obligations of U.S. Government Sponsored Entities
 
 
234,175
 
 
(5,599)
 
 
58,912
 
 
(2,096)
 
 
293,087
 
 
(7,695)
 
Commercial mortgage backed securities of U.S. Government Sponsored Entities
 
 
7,934
 
 
(102)
 
 
0
 
 
0
 
 
7,934
 
 
(102)
 
Private mortgage backed securities
 
 
0
 
 
0
 
 
36,848
 
 
(900)
 
 
36,848
 
 
(900)
 
Private collateralized mortgage obligations
 
 
1,460
 
 
0
 
 
38,417
 
 
(816)
 
 
39,877
 
 
(816)
 
Collateralized loan obligations
 
 
8,152
 
 
(41)
 
 
51,694
 
 
(938)
 
 
59,846
 
 
(979)
 
Obligations of state and political subdivisions
 
 
39,321
 
 
(895)
 
 
0
 
 
0
 
 
39,321
 
 
(895)
 
Corporate and other debt securities
 
 
33,008
 
 
(517)
 
 
0
 
 
0
 
 
33,008
 
 
(517)
 
Private commercial mortgage backed securities
 
 
12,667
 
 
(306)
 
 
7,139
 
 
(167)
 
 
19,806
 
 
(473)
 
Total temporarily impaired securities
 
$
664,476
 
$
(13,451)
 
$
198,397
 
$
(4,992)
 
$
862,873
 
$
(18,443)
 
 
The two tables above include securities held to maturity that were transferred from available for sale into held to maturity during 2014. Those securities had unrealized losses of $3.1 million at the date of transfer, and at June 30, 2017, the unamortized balance was $1.6 million. The fair value of those securities in an unrealized loss position for less than twelve months at June 30, 2017 and December 31, 2016 was $7.4 million and $22.8 million, respectively. The unrealized losses on those securities in an unrealized loss position for less than twelve months at June 30, 2017 and December 31, 2016 was $0.1 million and $0.4 million, respectively. The fair value of those securities in an unrealized loss position for more than twelve months at June 30, 2017 and December 31, 2016 was $7.4 million and none, respectively. The unrealized losses on those securities in an unrealized loss position for more than twelve months at June 30, 2017 and December 31, 2016 was $0.1 million and none, respectively.
 
At June 30, 2017, unrealized losses on mortgage backed securities, collateralized mortgage obligations and commercial mortgage backed securities of U.S. government sponsored entities having a fair value of $512.4 million totaled $9.1 million, which was attributable to a combination of factors, including relative changes in interest rates since the time of purchase. The contractual cash flows for these securities are guaranteed by U.S. government agencies and U.S. government-sponsored enterprises. Based on our assessment of these factors, management believes that the unrealized losses on these debt security holdings are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities.
 
At June 30, 2017, private label securities secured by seasoned residential collateral with a fair value of $33.0 million had approximately $0.6 million in unrealized losses. This was attributable to a combination of factors, including relative changes in interest rates since the time of purchase. The collateral underlying these mortgage investments are 30- and 15-year fixed and 10/1 adjustable rate mortgage loans with low loan to values, subordination and historically have had minimal foreclosures and losses. Based on its assessment of these factors, management believes that the unrealized losses on these debt security holdings are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities.
 
At June 30, 2017, remaining securities categories had unrealized losses of $0.7 million and summed to a fair value of $66.9 million. Management believes that unrealized losses on these remaining debt security holdings are a function of changes in investment spreads and interest movements and not change in credit quality. Management expects to recover the entire amortized cost basis of these securities.
 
As of June 30, 2017, management does not intend to sell securities that are in unrealized loss positions and it is not more likely than not that the Company will be required to sell these securities before recovery of the amortized cost basis. Therefore, management does not consider any investment to be other-than-temporarily impaired at June 30, 2017.
 
Included in other assets is $36.4 million of Federal Home Loan Bank and Federal Reserve Bank stock stated at par value. At June 30, 2017, the Company had not identified events or changes in circumstances which may have a significant adverse effect on the ability to redeem these holdings.
 
The Company also holds 211,330 shares of Visa Class B stock which, following resolution of Visa litigation, will be converted to Visa Class A shares (the conversion rate is 1.6483 shares of Class A stock for each share of Class B stock) for a total of 348,335 shares of Visa Class A stock. Our holdings are related to prior ownership in Visa’s network while Visa operated as a cooperative (11,330 shares), and by acquisition via auctions (200,000 shares) for $6.2 million conducted by the FDIC during the first quarter of 2017. These holdings are reported in other assets in the Consolidated Balance Sheets at the Company’s cost of $6.2 million.
v3.7.0.1
LOANS
6 Months Ended
Jun. 30, 2017
Receivables [Abstract]  
LOANS
NOTE E — LOANS
 
Information relating to portfolio loans, purchased credit impaired (“PCI”) loans, and purchased unimpaired loans (“PUL”) as of June 30, 2017 and December 31, 2016 is summarized as follows:
 
June 30, 2017
 
Portfolio Loans
 
PCI Loans
 
PUL's
 
Total
 
 
 
(In thousands)
 
Construction and land development
 
$
181,334
 
$
113
 
$
49,127
 
$
230,574
 
Commercial real estate
 
 
1,098,634
 
 
11,463
 
 
353,971
 
 
1,464,068
 
Residential real estate
 
 
874,753
 
 
702
 
 
115,689
 
 
991,144
 
Commercial and financial
 
 
393,213
 
 
854
 
 
71,071
 
 
465,138
 
Consumer
 
 
174,376
 
 
0
 
 
4,219
 
 
178,595
 
Other loans
 
 
556
 
 
0
 
 
0
 
 
556
 
NET LOAN BALANCES (1)
 
$
2,722,866
 
$
13,132
 
$
594,077
 
$
3,330,075
 
 
December 31, 2016
 
Portfolio Loans
 
PCI Loans
 
PUL's
 
Total
 
 
 
(In thousands)
 
Construction and land development
 
$
137,480
 
$
114
 
$
22,522
 
$
160,116
 
Commercial real estate
 
 
1,041,915
 
 
11,257
 
 
304,420
 
 
1,357,592
 
Residential real estate
 
 
784,290
 
 
684
 
 
51,813
 
 
836,787
 
Commercial and financial
 
 
308,731
 
 
941
 
 
60,917
 
 
370,589
 
Consumer
 
 
152,927
 
 
0
 
 
1,018
 
 
153,945
 
Other loans
 
 
507
 
 
0
 
 
0
 
 
507
 
NET LOAN BALANCES (1)
 
$
2,425,850
 
$
12,996
 
$
440,690
 
$
2,879,536
 
 
(1) Net loan balances as of June 30, 2017 and December 31, 2016 include deferred costs of $10.6 million for each period presented, respectively.
 
Purchased Loans - PCI loans are accounted for pursuant to ASC Topic 310-30. The excess of cash flows expected to be collected over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan in situations where there is a reasonable expectation about the timing and amount of cash flows expected to be collected. The difference between the contractually required payments and the cash flows expected to be collected, considering the impact of prepayments, is referred to as the nonaccretable difference. We have applied ASC Topic 310-20 accounting treatment to PULs.
 
The table below summarizes the changes in accretable yield for PCI loans during the three and six month periods ended June 30, 2017 and 2016, respectively:
 
Activity during the three months ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Reclassifications from
 
 
 
 
 
March 31,
 
 
 
 
 
 
 
nonaccretable
 
 
 
 
 
2017
 
Additions
 
Deletions
 
Accretion
 
difference
 
June 30, 2017
 
 
 
(In thousands)
 
Accretable yield
 
$
3,510
 
 
0
 
 
(10)
 
 
(451)
 
 
216
 
$
3,265
 
Recorded investment of acquired loans
 
$
12,982
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,132
 
Allowance for loan losses
 
 
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0
 
Recorded investment less allowance for loan losses
 
$
12,982
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,132
 
 
Activity during the six months ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Reclassifications from
 
 
 
 
 
December 31,
 
 
 
 
 
 
 
nonaccretable
 
 
 
 
 
2016
 
Additions
 
Deletions
 
Accretion
 
difference
 
June 30, 2017
 
 
 
(In thousands)
 
Accretable yield
 
$
3,807
 
 
0
 
 
(10)
 
 
(816)
 
 
284
 
$
3,265
 
Recorded investment of acquired loans
 
$
12,996
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,132
 
Allowance for loan losses
 
 
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0
 
Recorded investment less allowance for loan losses
 
$
12,996
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,132
 
 
Activity during the three months ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Reclassifications from
 
 
 
 
 
March 31,
 
 
 
 
 
 
 
nonaccretable
 
 
 
 
 
2016
 
Additions
 
Deletions
 
Accretion
 
difference
 
June 30, 2016
 
 
 
(In thousands)
 
Accretable yield
 
$
3,143
 
 
1,215
 
 
1,086
 
 
(770)
 
 
0
 
$
4,674
 
Recorded investment of acquired loans
 
$
16,531
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,652
 
Allowance for loan losses
 
 
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0
 
Recorded investment less allowance for loan losses
 
$
16,531
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,652
 
 
Activity during the six months ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Reclassifications from
 
 
 
 
 
December 31,
 
 
 
 
 
 
 
nonaccretable
 
 
 
 
 
2015
 
Additions
 
Deletions
 
Accretion
 
difference
 
June 30, 2016
 
 
 
(In thousands)
 
Accretable yield
 
$
2,610
 
 
1,831
 
 
1,271
 
 
(1,038)
 
 
0
 
$
4,674
 
Recorded investment of acquired loans
 
$
12,109
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,652
 
Allowance for loan losses
 
 
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0
 
Recorded investment less allowance for loan losses
 
$
12,109
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,652
 
 
The following tables present the contractual delinquency of the recorded investment in past due loans by class of loans as of June 30, 2017 and December 31, 2016:
 
 
 
 
 
 
 
Accruing
 
 
 
 
 
 
 
 
 
Accruing
 
Accruing
 
Greater
 
 
 
 
 
Total
 
June 30, 2017
 
30-59 Days
 
60-89 Days
 
Than
 
 
 
 
 
Financing
 
(In thousands)
 
Past Due
 
Past Due
 
90 Days
 
Nonaccrual
 
Current
 
Receivables
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
273
 
$
0
 
$
0
 
$
544
 
$
180,517
 
$
181,334
 
Commercial real estate
 
 
0
 
 
0
 
 
0
 
 
1,209
 
 
1,097,425
 
 
1,098,634
 
Residential real estate
 
 
68
 
 
65
 
 
0
 
 
8,655
 
 
865,965
 
 
874,753
 
Commercial and financial
 
 
125
 
 
0
 
 
0
 
 
0
 
 
393,088
 
 
393,213
 
Consumer
 
 
97
 
 
14
 
 
0
 
 
133
 
 
174,132
 
 
174,376
 
Other
 
 
0
 
 
0
 
 
0
 
 
0
 
 
556
 
 
556
 
Total
 
 
563
 
 
79
 
 
0
 
 
10,541
 
 
2,711,683
 
 
2,722,866
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchased Unimpaired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
0
 
 
0
 
 
0
 
 
125
 
 
49,002
 
 
49,127
 
Commercial real estate
 
 
437
 
 
0
 
 
0
 
 
743
 
 
352,791
 
 
353,971
 
Residential real estate
 
 
0
 
 
0
 
 
194
 
 
1,462
 
 
114,033
 
 
115,689
 
Commercial and financial
 
 
514
 
 
0
 
 
0
 
 
347
 
 
70,210
 
 
71,071
 
Consumer
 
 
0
 
 
0
 
 
0
 
 
0
 
 
4,219
 
 
4,219
 
Other
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
Total
 
 
951
 
 
0
 
 
194
 
 
2,677
 
 
590,255
 
 
594,077
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchased Credit Impaired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
0
 
 
0
 
 
0
 
 
0
 
 
113
 
 
113
 
Commercial real estate
 
 
0
 
 
0
 
 
0
 
 
3,761
 
 
7,702
 
 
11,463
 
Residential real estate
 
 
189
 
 
0
 
 
0
 
 
0
 
 
513
 
 
702
 
Commercial and financial
 
 
0
 
 
0
 
 
0
 
 
0
 
 
854
 
 
854
 
Consumer
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
Other
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
Total
 
 
189
 
 
0
 
 
0
 
 
3,761
 
 
9,182
 
 
13,132
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Loans
 
$
1,703
 
$
79
 
$
194
 
$
16,979
 
$
3,311,120
 
$
3,330,075
 
 
 
 
 
 
 
 
Accruing
 
 
 
 
 
 
 
 
 
Accruing
 
Accruing
 
Greater
 
 
 
 
 
Total
 
December 31, 2016
 
30-59 Days
 
60-89 Days
 
Than
 
 
 
 
 
Financing
 
(In thousands)
 
Past Due
 
Past Due
 
90 Days
 
Nonaccrual
 
Current
 
Receivables
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
0
 
$
0
 
$
0
 
$
438
 
$
137,042
 
$
137,480
 
Commercial real estate
 
 
78
 
 
171
 
 
0
 
 
1,784
 
 
1,039,882
 
 
1,041,915
 
Residential real estate
 
 
1,570
 
 
261
 
 
0
 
 
8,582
 
 
773,877
 
 
784,290
 
Commercial and financial
 
 
30
 
 
0
 
 
0
 
 
49
 
 
308,652
 
 
308,731
 
Consumer
 
 
29
 
 
59
 
 
0
 
 
170
 
 
152,669
 
 
152,927
 
Other
 
 
0
 
 
0
 
 
0
 
 
0
 
 
507
 
 
507
 
Total
 
 
1,707
 
 
491
 
 
0
 
 
11,023
 
 
2,412,629
 
 
2,425,850
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchased Unimpaired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
0
 
 
0
 
 
0
 
 
32
 
 
22,490
 
 
22,522
 
Commercial real estate
 
 
345
 
 
485
 
 
0
 
 
1,272
 
 
302,318
 
 
304,420
 
Residential real estate
 
 
153
 
 
0
 
 
0
 
 
1,262
 
 
50,398
 
 
51,813
 
Commercial and financial
 
 
39
 
 
328
 
 
0
 
 
197
 
 
60,353
 
 
60,917
 
Consumer
 
 
37
 
 
0
 
 
0
 
 
0
 
 
981
 
 
1,018
 
Other
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
Total
 
 
574
 
 
813
 
 
0
 
 
2,763
 
 
436,540
 
 
440,690
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchased Impaired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
0
 
 
0
 
 
0
 
 
0
 
 
114
 
 
114
 
Commercial real estate
 
 
0
 
 
0
 
 
0
 
 
4,285
 
 
6,972
 
 
11,257
 
Residential real estate
 
 
0
 
 
185
 
 
0
 
 
0
 
 
499
 
 
684
 
Commercial and financial
 
 
0
 
 
0
 
 
0
 
 
0
 
 
941
 
 
941
 
Consumer
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
Other
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
Total
 
 
0
 
 
185
 
 
0
 
 
4,285
 
 
8,526
 
 
12,996
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Loans
 
$
2,281
 
$
1,489
 
$
0
 
$
18,071
 
$
2,857,695
 
$
2,879,536
 
 
The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans.  Under the Company’s risk rating system, the Company classifies problem and potential problem loans as “Special Mention,” “Substandard,” and “Doubtful” and these loans are monitored on an ongoing basis. Loans that do not currently expose the Company to sufficient risk to warrant classification in the Substandard or Doubtful categories, but possess weaknesses that deserve management’s close attention are deemed to be Special Mention. Substandard loans include those characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.  Loans classified as Substandard may require a specific allowance. Loans classified as Doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.  The principal on loans classified as Doubtful is generally charged off. Risk ratings are updated any time the situation warrants.
 
Loans not meeting the criteria above are considered to be pass-rated loans and risk grades are recalculated at least annually by the loan relationship manager.  The following tables present the risk category of loans by class of loans based on the most recent analysis performed as of June 30, 2017 and December 31, 2016:
 
June 30, 2017
 
 
 
 
 
Construction
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
& Land
 
Commercial
 
Residential
 
and
 
Consumer
 
 
 
(In thousands)
 
Development
 
Real Estate
 
Real Estate
 
Financial
 
Loans
 
Total
 
Pass
 
$
216,965
 
$
1,426,634
 
$
965,708
 
$
453,838
 
$
177,470
 
$
3,240,615
 
Special mention
 
 
8,048
 
 
12,562
 
 
1,705
 
 
6,715
 
 
1,032
 
 
30,062
 
Substandard
 
 
4,631
 
 
13,364
 
 
3,274
 
 
3,981
 
 
168
 
 
25,418
 
Doubtful*
 
 
0
 
 
0
 
 
0
 
 
60
 
 
0
 
 
60
 
Nonaccrual
 
 
669
 
 
5,713
 
 
10,117
 
 
347
 
 
133
 
 
16,979
 
Pass-Troubled debt restructures
 
 
37
 
 
4,909
 
 
0
 
 
0
 
 
0
 
 
4,946
 
Troubled debt restructures
 
 
224
 
 
886
 
 
10,340
 
 
197
 
 
348
 
 
11,995
 
 
 
$
230,574
 
$
1,464,068
 
$
991,144
 
$
465,138
 
$
179,151
 
$
3,330,075
 
 
* Comprised of a single loan that paid off in July 2017.
 
December 31, 2016
 
 
 
 
 
Construction
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
& Land
 
Commercial
 
Residential
 
and
 
Consumer
 
 
 
(In thousands)
 
Development
 
Real Estate
 
Real Estate
 
Financial
 
Loans
 
Total
 
Pass
 
$
148,563
 
$
1,319,696
 
$
811,576
 
$
364,241
 
$
153,730
 
$
2,797,806
 
Special mention
 
 
5,037
 
 
17,184
 
 
1,780
 
 
3,949
 
 
67
 
 
28,017
 
Substandard
 
 
5,497
 
 
7,438
 
 
2,709
 
 
2,153
 
 
134
 
 
17,931
 
Doubtful
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
Nonaccrual
 
 
470
 
 
7,341
 
 
9,844
 
 
246
 
 
170
 
 
18,071
 
Pass-Troubled debt restructures
 
 
44
 
 
4,988
 
 
358
 
 
0
 
 
44
 
 
5,434
 
Troubled debt restructures
 
 
505
 
 
945
 
 
10,520
 
 
0
 
 
307
 
 
12,277
 
 
 
$
160,116
 
$
1,357,592
 
$
836,787
 
$
370,589
 
$
154,452
 
$
2,879,536
 
v3.7.0.1
IMPAIRED LOANS AND ALLOWANCE FOR LOAN LOSSES
6 Months Ended
Jun. 30, 2017
Loans and Leases Receivable Disclosure [Abstract]  
Impaired Loans and Allowance for Loan Losses
NOTE F — IMPAIRED LOANS AND ALLOWANCE FOR LOAN LOSSES
 
The Company’s Troubled Debt Restructuring (“TDR”) concessions granted generally do not include forgiveness of principal balances. Loan modifications are not reported in calendar years after modification if the loans were modified at an interest rate equal to the yields of new loan originations with comparable risk and the loans are performing based on the terms of the restructuring agreements. Most loans prior to modification were classified as an impaired loan and the allowance for loan losses is determined in accordance with Company policy.
 
The following table presents loans that were modified within the six months ending June 30, 2017:
 
 
 
 
 
Pre-
 
Post-
 
 
 
 
 
 
 
Modification
 
Modification
 
 
 
 
 
Number
 
Outstanding
 
Outstanding
 
Valuation
 
 
 
of
 
Recorded
 
Recorded
 
Allowance
 
(Dollars in thousands)
 
Contracts
 
Investment
 
Investment
 
Recorded
 
Construction and land development
 
 
1
 
$
52
 
$
46
 
$
6
 
Residential real estate
 
 
1
 
 
15
 
 
15
 
 
0
 
 
 
 
2
 
$
67
 
$
61
 
$
6
 
 
The following table presents loans that were modified within the six months ending June 30, 2016:
 
 
 
 
 
Pre-
 
Post-
 
 
 
 
 
 
 
Modification
 
Modification
 
 
 
 
 
Number
 
Outstanding
 
Outstanding
 
Valuation
 
 
 
of
 
Recorded
 
Recorded
 
Allowance
 
(Dollars in thousands)
 
Contracts
 
Investment
 
Investment
 
Recorded
 
Residential real estate
 
 
6
 
$
1,660
 
$
1,489
 
$
171
 
 
 
 
6
 
$
1,660
 
$
1,489
 
$
171
 
 
For the six months ended June 30, 2017 and 2016, there were no payment defaults on loans that had been modified to a TDR within the previous twelve months. The Company considers a loan to have defaulted when it becomes 90 days or more delinquent under the modified terms, has been transferred to nonaccrual status, or has been transferred to other real estate owned. A defaulted TDR is generally placed on nonaccrual and specific allowance for loan loss is assigned in accordance with the Company’s policy.
 
As of June 30, 2017 and December 31, 2016, the Company’s recorded investment in impaired loans (excluding PCI loans), the unpaid principal balance, and the related valuation allowance were as follows:
 
 
 
June 30, 2017
 
 
 
 
 
Unpaid
 
Related
 
 
 
Recorded
 
Principal
 
Valuation
 
(Dollars in thousands)
 
Investment
 
Balance
 
Allowance
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
577
 
$
879
 
$
0
 
Commercial real estate
 
 
2,791
 
 
4,134
 
 
0
 
Residential real estate
 
 
10,099
 
 
14,607
 
 
0
 
Commercial and financial
 
 
352
 
 
361
 
 
0
 
Consumer
 
 
127
 
 
200
 
 
0
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
355
 
 
367
 
 
145
 
Commercial real estate
 
 
4,964
 
 
4,970
 
 
244
 
Residential real estate
 
 
10,360
 
 
10,566
 
 
1,255
 
Commercial and financial
 
 
406
 
 
197
 
 
209
 
Consumer
 
 
355
 
 
355
 
 
58
 
Total:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
932
 
 
1,246
 
 
145
 
Commercial real estate
 
 
7,755
 
 
9,104
 
 
244
 
Residential real estate
 
 
20,459
 
 
25,173
 
 
1,255
 
Commercial and financial
 
 
758
 
 
558
 
 
209
 
Consumer
 
 
482
 
 
555
 
 
58
 
 
 
$
30,386
 
$
36,636
 
$
1,911
 
 
 
 
December 31, 2016
 
 
 
 
 
Unpaid
 
Related
 
 
 
Recorded
 
Principal
 
Valuation
 
(Dollars in thousands)
 
Investment
 
Balance
 
Allowance
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
226
 
$
321
 
$
0
 
Commercial real estate
 
 
3,267
 
 
4,813
 
 
0
 
Residential real estate
 
 
9,706
 
 
14,136
 
 
0
 
Commercial and financial
 
 
199
 
 
206
 
 
0
 
Consumer
 
 
0
 
 
0
 
 
0
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
51
 
 
51
 
 
0
 
Commercial real estate
 
 
6,937
 
 
6,949
 
 
395
 
Residential real estate
 
 
12,332
 
 
12,681
 
 
2,059
 
Commercial and financial
 
 
0
 
 
0
 
 
0
 
Consumer
 
 
0
 
 
0
 
 
0
 
Total:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
277
 
 
372
 
 
0
 
Commercial real estate
 
 
10,204
 
 
11,762
 
 
395
 
Residential real estate
 
 
22,038
 
 
26,817
 
 
2,059
 
Commercial and financial
 
 
199
 
 
206
 
 
0
 
Consumer
 
 
0
 
 
0
 
 
0
 
 
 
$
32,718
 
$
39,157
 
$
2,454
 
 
For the three months ended June 30, 2017 and 2016, the Company’s average recorded investments in impaired loans (excluding PCI loans) and related interest income were as follows:
 
 
 
Three Months Ended
 
Three Months Ended
 
 
 
June 30, 2017
 
June 30, 2016
 
 
 
Average
 
Interest
 
Average
 
Interest
 
 
 
Recorded
 
Income
 
Recorded
 
Income
 
(Dollars in thousands)
 
Investment
 
Recognized
 
Investment
 
Recognized
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
$
538
 
$
11
 
$
214
 
$
0
 
Commercial real estate
 
 
2,521
 
 
40
 
 
1,860
 
 
2
 
Residential real estate
 
 
9,831
 
 
159
 
 
9,587
 
 
37
 
Commercial and financial
 
 
155
 
 
6
 
 
16
 
 
0
 
Consumer
 
 
154
 
 
3
 
 
183
 
 
1
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
279
 
 
2
 
 
634
 
 
6
 
Commercial real estate
 
 
5,745
 
 
39
 
 
6,906
 
 
73
 
Residential real estate
 
 
11,173
 
 
84
 
 
11,993
 
 
100
 
Commercial and financial
 
 
371
 
 
3
 
 
0
 
 
0
 
Consumer
 
 
311
 
 
7
 
 
356
 
 
5
 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
817
 
 
13
 
 
848
 
 
6
 
Commercial real estate
 
 
8,266
 
 
79
 
 
8,766
 
 
75
 
Residential real estate
 
 
21,004
 
 
243
 
 
21,580
 
 
137
 
Commercial and financial
 
 
526
 
 
9
 
 
16
 
 
0
 
Consumer
 
 
465
 
 
10
 
 
539
 
 
6
 
 
 
$
31,078
 
$
354
 
$
31,749
 
$
224
 
 
For the six months ended June 30, 2017 and 2016, the Company’s average recorded investments in impaired loans (excluding PCI loans) and related interest income were as follows:
 
 
 
Six Months Ended
 
Six Months Ended
 
 
 
June 30, 2017
 
June 30, 2016
 
 
 
Average
 
Interest
 
Average
 
Interest
 
 
 
Recorded
 
Income
 
Recorded
 
Income
 
(Dollars in thousands)
 
Investment
 
Recognized
 
Investment
 
Recognized
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
$
431
 
$
22
 
$
179
 
$
0
 
Commercial real estate
 
 
2,747
 
 
79
 
 
2,063
 
 
5
 
Residential real estate
 
 
9,767
 
 
297
 
 
9,493
 
 
71
 
Commercial and financial
 
 
153
 
 
7
 
 
16
 
 
0
 
Consumer
 
 
105
 
 
7
 
 
212
 
 
1
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
197
 
 
5
 
 
702
 
 
13
 
Commercial real estate
 
 
6,207
 
 
108
 
 
6,970
 
 
147
 
Residential real estate
 
 
11,627
 
 
197
 
 
12,128
 
 
185
 
Commercial and financial
 
 
244
 
 
7
 
 
0
 
 
0
 
Consumer
 
 
204
 
 
10
 
 
353
 
 
9
 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
628
 
 
27
 
 
881
 
 
13
 
Commercial real estate
 
 
8,954
 
 
187
 
 
9,033
 
 
152
 
Residential real estate
 
 
21,394
 
 
494
 
 
21,621
 
 
256
 
Commercial and financial
 
 
397
 
 
14
 
 
16
 
 
0
 
Consumer
 
 
309
 
 
17
 
 
565
 
 
10
 
 
 
$
31,682
 
$
739
 
$
32,116
 
$
431
 
 
Impaired loans also include loans that have been modified in troubled debt restructurings where concessions to borrowers who experienced financial difficulties have been granted. At June 30, 2017 and at December 31, 2016, accruing TDRs totaled $16.9 million and $17.7 million, respectively.
 
The impaired loans are measured for impairment based on the value of underlying collateral or the present value of expected future cash flows discounted at the loan’s effective rate. The valuation allowance is included in the allowance for loan losses.
 
Interest payments received on impaired loans are recorded as interest income unless collection of the remaining recorded investment is doubtful at which time payments received are recorded as reductions to principal.
 
For impaired loans whose impairment is measured based on the present value of expected future cash flows, a total of $125,000 and $95,000, respectively, was included in interest income for the six months ended June 30, 2017 and 2016, respectively, and represents the change in present value attributable to the passage of time.
 
Nonaccrual loans and accruing loans past due 90 days or more (excluding purchased loans) totaled $10.5 million and $0, respectively, at June 30, 2017, and $11.0 million and $0, respectively, at December 31, 2016. Purchased nonaccrual and accruing loans past due 90 days or more were $6.4 million and $0.2 million, respectively, at June 30, 2017, and $7.0 million and $0, respectively, at December 31, 2016.
 
Activity in the allowance for loan losses (excluding PCI loans) for the three month and six month periods ended June 30, 2017 is summarized as follows:
 
 
 
Allowance for Loan Losses for the Three Months Ended June 30, 2017
 
 
 
 
 
Provision
 
 
 
 
 
Net
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
(Charge-Offs)
 
Ending
 
(Dollars in thousands)
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Recoveries
 
Balance
 
Construction & land development
 
$
1,352
 
$
128
 
$
0
 
$
94
 
$
94
 
$
1,574
 
Commercial real estate
 
 
9,861
 
 
(167)
 
 
(102)
 
 
331
 
 
229
 
 
9,923
 
Residential real estate
 
 
7,064
 
 
324
 
 
(64)
 
 
99
 
 
35
 
 
7,423
 
Commercial and financial
 
 
4,635
 
 
1,193
 
 
(447)
 
 
79
 
 
(368)
 
 
5,460
 
Consumer
 
 
1,650
 
 
(77)
 
 
(55)
 
 
102
 
 
47
 
 
1,620
 
 
 
$
24,562
 
$
1,401
 
$
(668)
 
$
705
 
$
37
 
$
26,000
 
 
 
 
Allowance for Loan Losses for the Six Months Ended June 30, 2017
 
 
 
 
 
Provision
 
 
 
 
 
Net
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
(Charge-Offs)
 
Ending
 
(Dollars in thousands)
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Recoveries
 
Balance
 
Construction & land development
 
$
1,219
 
$
192
 
$
0
 
$
163
 
$
163
 
$
1,574
 
Commercial real estate
 
 
9,273
 
 
313
 
 
(102)
 
 
439
 
 
337
 
 
9,923
 
Residential real estate
 
 
7,483
 
 
(100)
 
 
(187)
 
 
227
 
 
40
 
 
7,423
 
Commercial and financial
 
 
3,636
 
 
2,314
 
 
(616)
 
 
126
 
 
(490)
 
 
5,460
 
Consumer
 
 
1,789
 
 
(14)
 
 
(314)
 
 
159
 
 
(155)
 
 
1,620
 
 
 
$
23,400
 
$
2,705
 
$
(1,219)
 
$
1,114
 
$
(105)
 
$
26,000
 
 
Activity in the allowance for loan losses (excluding PCI loans) for the three month and six month periods ended June 30, 2016 is summarized as follows:
 
 
 
Allowance for Loan Losses for the Three Months Ended June 30, 2016
 
 
 
 
 
Provision
 
 
 
 
 
Net
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
(Charge-Offs)
 
Ending
 
(Dollars in thousands)
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Recoveries
 
Balance
 
Construction & land development
 
$
1,285
 
$
(239)
 
$
0
 
$
114
 
$
114
 
$
1,160
 
Commercial real estate
 
 
6,677
 
 
495
 
 
(3)
 
 
23
 
 
20
 
 
7,192
 
Residential real estate
 
 
8,512
 
 
(420)
 
 
(28)
 
 
235
 
 
207
 
 
8,299
 
Commercial and financial
 
 
1,991
 
 
566
 
 
(38)
 
 
72
 
 
34
 
 
2,591
 
Consumer
 
 
1,259
 
 
260
 
 
(53)
 
 
17
 
 
(36)
 
 
1,483
 
 
 
$
19,724
 
$
662
 
$
(122)
 
$
461
 
$
339
 
$
20,725
 
 
 
 
Allowance for Loan Losses for the Six Months Ended June 30, 2016
 
 
 
 
 
Provision
 
 
 
 
 
Net
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
Charge-
 
Ending
 
(Dollars in thousands)
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Offs
 
Balance
 
Construction & land development
 
$
1,151
 
$
(180)
 
$
0
 
$
189
 
$
189
 
$
1,160
 
Commercial real estate
 
 
6,756
 
 
510
 
 
(176)
 
 
102
 
 
(74)
 
 
7,192
 
Residential real estate
 
 
8,057
 
 
(10)
 
 
(145)
 
 
397
 
 
252
 
 
8,299
 
Commercial and financial
 
 
2,042
 
 
147
 
 
(93)
 
 
495
 
 
402
 
 
2,591
 
Consumer
 
 
1,122
 
 
394
 
 
(80)
 
 
47
 
 
(33)
 
 
1,483
 
 
 
$
19,128
 
$
861
 
$
(494)
 
$
1,230
 
$
736
 
$
20,725
 
 
The allowance for loan losses is composed of specific allowances for certain impaired loans and general allowances grouped into loan pools based on similar characteristics. The Company’s loan portfolio (excluding PCI loans) and related allowance at June 30, 2017 and December 31, 2016 is shown in the following tables:
 
 
 
At June 30, 2017
 
 
 
Individually Evaluated for
 
Collectively Evaluated for
 
 
 
 
 
 
 
Impairment
 
Impairment
 
Total
 
 
 
Recorded
 
Associated
 
Recorded
 
Associated
 
Recorded
 
Associated
 
(Dollars in thousands)
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Construction & land development
 
$
932
 
$
145
 
$
229,529
 
$
1,429
 
$
230,461
 
$
1,574
 
Commercial real estate
 
 
7,755
 
 
244
 
 
1,444,850
 
 
9,679
 
 
1,452,605
 
 
9,923
 
Residential real estate
 
 
20,459
 
 
1,255
 
 
969,983
 
 
6,168
 
 
990,442
 
 
7,423
 
Commercial and financial
 
 
758
 
 
209
 
 
463,526
 
 
5,251
 
 
464,284
 
 
5,460
 
Consumer
 
 
482
 
 
58
 
 
178,669
 
 
1,562
 
 
179,151
 
 
1,620
 
 
 
$
30,386
 
$
1,911
 
$
3,286,557
 
$
24,089
 
$
3,316,943
 
$
26,000
 
 
 
 
At December 31, 2016
 
 
 
Individually Evaluated for
 
Collectively Evaluated for
 
 
 
 
 
 
 
Impairment
 
Impairment
 
Total
 
 
 
Recorded
 
Associated
 
Recorded
 
Associated
 
Recorded
 
Associated
 
(Dollars in thousands)
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Construction & land development
 
$
277
 
$
0
 
$
159,839
 
$
1,219
 
$
160,116
 
$
1,219
 
Commercial real estate
 
 
10,204
 
 
395
 
 
1,335,832
 
 
8,878
 
 
1,346,036
 
 
9,273
 
Residential real estate
 
 
22,038
 
 
2,059
 
 
814,250
 
 
5,424
 
 
836,288
 
 
7,483
 
Commercial and financial
 
 
199
 
 
0
 
 
369,449
 
 
3,636
 
 
369,648
 
 
3,636
 
Consumer
 
 
0
 
 
0
 
 
154,452
 
 
1,789
 
 
154,452
 
 
1,789
 
 
 
$
32,718
 
$
2,454
 
$
2,833,822
 
$
20,946
 
$
2,866,540
 
$
23,400
 
 
Loans collectively evaluated for impairment included loans acquired in connection with the acquisition of GulfShore Bancshares, Inc. (“GulfShore”) on April 7, 2017, Floridian Financial Group, Inc. (“Floridian”) on March 11, 2016, certain branches from BMO Harris Bank, N.A. (“BMO”) on June 3, 2016, Grand Bankshares, Inc. (“Grand”) on July 17, 2015, and The BANKshares, Inc. on October 1, 2014 that are not PCI loans. At June 30, 2017, the remaining fair value adjustments for loans acquired was approximately $15.5 million, or approximately 2.54% of the outstanding aggregate PUL balances. At December 31, 2016, the remaining fair value adjustments for loans acquired was approximately $13.7 million, or approximately 3.11% of the outstanding aggregate PUL balances. These amounts, representing the remaining fair value discount of each PUL, are accreted into interest income over the remaining lives of the related loans on a level yield basis.
 
The table below summarizes PCI loans that were individually evaluated for impairment based on expected cash flows at June 30, 2017 and December 31, 2016:
 
 
 
PCI Loans Individually Evaluated for Impairment
 
 
 
June 30, 2017
 
December 31, 2016
 
 
 
Recorded
 
Associated
 
Recorded
 
Associated
 
(Dollars in thousands)
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Construction & land development
 
$
113
 
$
0
 
$
114
 
$
0
 
Commercial real estate
 
 
11,463
 
 
0
 
 
11,257
 
 
0
 
Residential real estate
 
 
702
 
 
0
 
 
684
 
 
0
 
Commercial and financial
 
 
854
 
 
0
 
 
941
 
 
0
 
Consumer
 
 
0
 
 
0
 
 
0
 
 
0
 
 
 
$
13,132
 
$
0
 
$
12,996
 
$
0
 
v3.7.0.1
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
6 Months Ended
Jun. 30, 2017
Brokers and Dealers [Abstract]  
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
NOTE G — SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
 
Securities sold under agreements to repurchase are accounted for as secured borrowings. For securities sold under agreements to repurchase, the Company is obligated to provide additional collateral in the event of a significant decline in fair value of collateral pledged. At June 30, 2017 and December 31, 2016, Company securities sold under agreements to repurchase and securities pledged were as follows by collateral type and maturity:
 
(Dollars in thousands)
 
Overnight and Continuous Maturity
 
 
 
June 30,
 
December 31,
 
 
 
2017
 
2016
 
Mortgage backed securities and collateralized mortgage  obligations of U.S. Government Sponsored Entities
 
$
167,558
 
$
204,202
 
v3.7.0.1
NONINTEREST INCOME AND EXPENSES
6 Months Ended
Jun. 30, 2017
Noninterest Income and Expenses [Abstract]  
NONINTEREST INCOME AND EXPENSE
NOTE H – NONINTEREST INCOME AND EXPENSES
 
Detail of noninterest income and expenses as of the three and six months ended June 30, 2017 and 2016 follows:
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
(In thousands)
 
2017
 
2016
 
2017
 
2016
 
Noninterest income
 
 
 
 
 
 
 
 
 
 
 
 
 
Service charges on deposits
 
$
2,435
 
$
2,230
 
$
4,857
 
$
4,359
 
Trust income
 
 
917
 
 
838
 
 
1,797
 
 
1,644
 
Mortgage banking fees
 
 
1,272
 
 
1,364
 
 
2,824
 
 
2,363
 
Brokerage commissions and fees
 
 
351
 
 
470
 
 
728
 
 
1,101
 
Marine finance fees
 
 
326
 
 
279
 
 
460
 
 
420
 
Interchange income
 
 
2,671
 
 
2,370
 
 
5,165
 
 
4,587
 
Other deposit-based EFT fees
 
 
114
 
 
116
 
 
254
 
 
243
 
BOLI income
 
 
757
 
 
379
 
 
1,490
 
 
1,220
 
Other income
 
 
1,624
 
 
1,065
 
 
2,797
 
 
1,804
 
 
 
 
10,467
 
 
9,111
 
 
20,372
 
 
17,741
 
Securities gains, net
 
 
21
 
 
47
 
 
21
 
 
136
 
TOTAL
 
$
10,488
 
$
9,158
 
$
20,393
 
$
17,877
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and wages
 
$
18,375
 
$
13,884
 
$
33,744
 
$
27,283
 
Employee benefits
 
 
2,935
 
 
2,521
 
 
6,003
 
 
5,003
 
Outsourced data processing costs
 
 
3,456
 
 
2,803
 
 
6,725
 
 
7,242
 
Telephone/data lines
 
 
648
 
 
539
 
 
1,180
 
 
1,067
 
Occupancy
 
 
4,421
 
 
3,645
 
 
7,578
 
 
6,617
 
Furniture and equipment
 
 
1,679
 
 
1,283
 
 
3,070
 
 
2,281
 
Marketing
 
 
1,074
 
 
957
 
 
1,996
 
 
2,006
 
Legal and professional fees
 
 
3,276
 
 
2,656
 
 
5,408
 
 
5,013
 
FDIC assessments
 
 
650
 
 
643
 
 
1,220
 
 
1,187
 
Amortization of intangibles
 
 
839
 
 
593
 
 
1,558
 
 
1,039
 
Asset disposition expense
 
 
136
 
 
160
 
 
189
 
 
250
 
Net loss (gain) on other real estate owned and repossessed assets
 
 
161
 
 
(201)
 
 
(185)
 
 
(252)
 
Early redemption cost for Federal Home Loan Bank borrowings
 
 
0
 
 
1,777
 
 
0
 
 
1,777
 
Other
 
 
3,975
 
 
3,548
 
 
7,885
 
 
6,636
 
TOTAL
 
$
41,625
 
$
34,808
 
$
76,371
 
$
67,149
 
v3.7.0.1
EQUITY CAPITAL
6 Months Ended
Jun. 30, 2017
Equity [Abstract]  
EQUITY CAPITAL
NOTE I — EQUITY CAPITAL
 
On February 21, 2017, the Company completed a public offering of 2,702,500 shares of common stock, generating net proceeds of $55.6 million. In addition, CapGen Capital Group III LP (“CapGen”), in conjunction with the Company’s offering, sold 6,210,000 shares of the Company’s common stock, with no net proceeds to the Company.
 
The Company is well capitalized and at June 30, 2017, the Company and the Company’s principal banking subsidiary, Seacoast National Bank, or “Seacoast Bank”, met the common equity Tier 1 capital ratio (CET1) regulatory threshold of 6.5% for well-capitalized institutions under the Basel III standardized transition approach, as well as risk-based and leverage ratio requirements for well capitalized banks under the regulatory framework for prompt corrective action.
v3.7.0.1
CONTINGENCIES
6 Months Ended
Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]  
CONTINGENCIES
NOTE J — CONTINGENCIES
 
The Company and its subsidiaries, because of the nature of their businesses, are at all times subject to legal actions, threatened or filed. Management presently believes that none of the legal proceedings to which it is a party are likely to have a material adverse effect on the Company’s consolidated financial condition, operating results or cash flows, although no assurance can be given with respect to the ultimate outcome of any such claim or litigation.
v3.7.0.1
FAIR VALUE
6 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
FAIR VALUE
NOTE K — FAIR VALUE
 
Under ASC 820, fair value measurements for items measured at fair value on a recurring and nonrecurring basis at June 30, 2017 and December 31, 2016 included:
 
 
 
 
 
Quoted Prices
 
 
 
 
 
 
 
 
 
in Active
 
Significant
 
 
 
 
 
 
 
Markets for
 
Other
 
Significant
 
 
 
 
 
Identical
 
Observable
 
Unobservable
 
 
 
Fair Value
 
Assets
 
Inputs
 
Inputs
 
(Dollars in thousands)
 
Measurements
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
At June 30, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for sale securities (1)
 
$
1,016,744
 
$
100
 
$
1,016,644
 
$
0
 
Loans held for sale (2)
 
 
22,262
 
 
0
 
 
22,262
 
 
0
 
Loans (3)
 
 
10,710
 
 
0
 
 
10,304
 
 
406
 
Other real estate owned (4)
 
 
8,497
 
 
0
 
 
0
 
 
8,497
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for sale securities (1)
 
$
950,503
 
$
100
 
$
950,403
 
$
0
 
Loans held for sale (2)
 
 
15,332
 
 
0
 
 
15,332
 
 
0
 
Loans (3)
 
 
4,120
 
 
0
 
 
3,170
 
 
950
 
Other real estate owned (4)
 
 
9,949
 
 
0
 
 
0
 
 
9,949
 
____________
(1) See Note D for further detail of fair value of individual investment categories.
(2) Recurring fair value basis determined using observable market data.
(3) See Note F. Nonrecurring fair value adjustments to loans identified as impaired reflect full or partial write-downs that are based on the loan’s observable market price or current appraised value of the collateral in accordance with ASC 310.
(4) Fair value is measured on a nonrecurring basis in accordance with ASC 360.
 
The fair value of impaired real estate loans which are collateral dependent is based on recent real estate appraisals less estimated costs of sale. For residential real estate impaired loans, appraised values or internal evaluation are based on the comparative sales approach. These impaired loans are considered level 2 in the fair value hierarchy. For commercial and commercial real estate impaired loans, evaluations may use either a single valuation approach or a combination of approaches, such as comparative sales, cost and/or income approach. A significant unobservable input in the income approach is the estimated capitalization rate for a given piece of collateral. At June 30, 2017, the capitalization rates utilized to determine fair value of the underlying collateral averaged approximately 7.8%. Adjustments to comparable sales may be made by an appraiser to reflect local market conditions or other economic factors and may result in changes in the fair value of an asset over time. As such, the fair value of these impaired loans is considered level 3 in the fair value hierarchy. Impaired loans measured at fair value totaled $10.7 million with a specific reserve of $0.6 million at June 30, 2017, compared to $4.1 million with a specific reserve of $0.4 million at December 31, 2016.
 
Fair value of available for sale securities is determined using valuation techniques for individual investments as described in Note D.
 
When appraisals are used to determine fair value and the appraisals are based on a market approach, the fair value of other real estate owned (“OREO”) is classified as a level 2 input. When the fair value of OREO is based on appraisals which require significant adjustments to market-based valuation inputs or apply an income approach based on unobservable cash flows, the fair value of OREO is classified as Level 3.
 
Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s monthly and/or quarter-end valuation process.
 
During the six months ended June 30, 2017, there were no transfers between levels of the fair value hierarchy.
 
For loans classified as level 3, the additions totaled $0.1 million for the first six months of 2017, consisting of loans that became impaired during 2017. Reductions consisted primarily of principal payments and totaled $0.6 million.
 
Charge-offs recognized upon loan foreclosures are generally offset by general or specific allocations of the allowance for loan losses and generally do not, and did not during the reported periods, significantly impact the Company’s provision for loan losses.
 
For OREO classified as level 3 during the first six months of 2017, foreclosed loans added $0.4 million and migrated branches taken out of service added $1.2 million. Reductions summed to $3.1 million and consisted almost entirely of sales of $2.9 million.
 
The carrying amount and fair value of the Company’s other significant financial instruments that are not measured at fair value on a recurring basis in the balance sheet as of June 30, 2017 and December 31, 2016 is as follows:
 
 
 
 
 
Markets for
 
Other
 
Significant
 
 
 
 
 
Identical
 
Observable
 
Unobservable
 
 
 
Carrying
 
Assets
 
Inputs
 
Inputs
 
(Dollars in thousands)
 
Amount
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
At June 30, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities held to maturity (1)
 
$
397,096
 
$
0
 
$
397,357
 
$
0
 
Time deposits with other banks
 
 
16,426
 
 
0
 
 
0
 
 
16,386
 
Loans, net
 
 
3,293,365
 
 
0
 
 
0
 
 
3,277,109
 
Financial Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposit liabilities
 
 
3,975,458
 
 
0
 
 
0
 
 
3,973,456
 
Subordinated debt
 
 
70,381
 
 
0
 
 
55,017
 
 
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities held to maturity (1)
 
$
372,498
 
$
0
 
$
369,881
 
$
0
 
Loans, net
 
 
2,852,016
 
 
0
 
 
0
 
 
2,840,993
 
Financial Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposit liabilities
 
 
3,523,245
 
 
0
 
 
0
 
 
3,523,322
 
Subordinated debt
 
 
70,241
 
 
0
 
 
54,908
 
 
0
 
 
(1) See Note D for further detail of fair value of individual investment categories.
 
The short maturity of Seacoast’s assets and liabilities results in having a significant number of financial instruments whose fair value equals or closely approximates carrying value. Such financial instruments are reported in the following balance sheet captions: cash and due from banks, interest bearing deposits with other banks, federal funds purchased, and securities sold under agreement to repurchase, maturing within 30 days, and FHLB borrowings.
 
The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value at June 30, 2017 and December 31, 2016:
 
Securities: U.S. Treasury securities are reported at fair value utilizing Level 1 inputs. Other securities are reported at fair value utilizing Level 2 inputs. 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 factors.
 
The Company reviews the prices supplied by independent pricing services, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. The fair value of collateralized loan obligations is determined from broker quotes. From time to time, the Company will validate, on a sample basis, prices supplied by the independent pricing service by comparison to prices obtained from other brokers and third-party sources or derived using internal models.
 
Loans: Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial or mortgage. Each loan category is further segmented into fixed and adjustable rate interest terms and by performing and nonperforming categories. The fair value of loans, except residential mortgages, is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risks inherent in the loan. For residential mortgage loans, fair value is estimated by discounting contractual cash flows adjusting for prepayment assumptions using discount rates based on secondary market sources. The estimated fair value is not an exit price fair value under ASC 820 when this valuation technique is used.
 
Loans held for sale: Fair values are based upon estimated values received from independent third party purchasers. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans held for investment. None of the loans are 90 days or more past due or on nonaccrual as of June 30, 2017 and December 31, 2016, respectively. Loans held for sale were as follows at June 30, 2017 and December 31, 2016:
 
 
 
June 30,
 
December 31,
 
(Dollars in thousands)
 
2017
 
2016
 
Aggregate fair value
 
$
22,262
 
$
15,332
 
Contractual balance
 
 
21,640
 
 
14,904
 
Gains (losses)
 
 
622
 
 
428
 
 
Deposit Liabilities: The fair value of demand deposits, savings accounts and money market deposits is the amount payable at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using the rates currently offered for funding of similar remaining maturities.
v3.7.0.1
BUSINESS COMBINATIONS
6 Months Ended
Jun. 30, 2017
Business Combinations [Abstract]  
Business Combinations
NOTE L — BUSINESS COMBINATIONS
 
Acquisition of Floridian Financial Group, Inc.
 
On March 11, 2016, the Company completed its acquisition of Floridian, the parent company of Floridian Bank. Simultaneously, upon completion of the merger, Floridian’s wholly owned subsidiary bank, Floridian Bank, was merged with and into Seacoast Bank. Floridian, headquartered in Lake Mary, Florida, operated 10 branches in Orlando and Daytona Beach, of which several were consolidated with Seacoast locations. This acquisition added approximately $417 million in total assets, $337 million in deposits, and $266 million in loans to Seacoast.
 
The Company acquired 100% of the outstanding common stock of Floridian. Under the terms of the definitive agreement, Floridian shareholders received, at their election, (i) the combination of $4.29 in cash and 0.5291 shares of Seacoast common stock, (ii) $12.25 in cash, or (iii) 0.8140 shares of Seacoast common stock, subject to a customary proration mechanism so that the aggregate consideration mix equaled 35% cash and 65% Seacoast shares (based on Seacoast’s closing price of $15.47 per share on March 11, 2016). 
 
The following table represents the purchase price paid to Floridian shareholders in connection with the acquisition:
 
 
 
March 11, 2016
 
Shares exchanged for cash
 
$
26,699,000
 
 
 
 
 
 
Number of Floridian Financial Group, Inc. common shares outstanding
 
 
6,222,119
 
Per share exchange ratio
 
 
0.5289
 
Number of shares of common stock issued
 
 
3,291,066
 
Multiplied by common stock price per share on March 11, 2016
 
$
15.47
 
Value of common stock issued
 
 
50,912,791
 
 
 
 
 
 
Total purchase price
 
$
77,611,791
 
 
The acquisition was accounted for under the acquisition method in accordance with ASC Topic 805, Business Combinations. The Company recognized goodwill on this acquisition which is nondeductible for tax purposes as this acquisition was a nontaxable transaction. The goodwill was calculated based on the fair values of the assets acquired and liabilities assumed as of the acquisition date. Loans that were nonaccrual and all loan relationships identified as impaired as of the acquisition date were considered by management to be credit impaired and were accounted for pursuant to ASC Topic 310-30.
 
 
 
 
 
Measurement
 
 
 
 
 
Initial Report
 
Period
 
As Adjusted
 
Date of acquisition
 
March 11, 2016
 
Adjustments
 
March 11, 2016
 
 
 
 
 
(in thousands)
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Cash
 
$
28,243
 
$
0
 
$
28,243
 
Investment securities
 
 
66,912
 
 
95
 
 
67,007
 
Loans, net
 
 
268,249
 
 
(2,112)
 
 
266,137
 
Fixed assets
 
 
7,801
 
 
(628)
 
 
7,173
 
Core deposit intangibles
 
 
3,375
 
 
0
 
 
3,375
 
Goodwill
 
 
29,985
 
 
1,647
 
 
31,632
 
Other assets
 
 
12,879
 
 
998
 
 
13,877
 
 
 
$
417,444
 
$
0
 
$
417,444
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits
 
$
337,341
 
$
0
 
$
337,341
 
Other liabilities
 
 
2,492
 
 
0
 
 
2,492
 
 
 
$
339,833
 
$
0
 
$
339,833
 
 
The table below presents information with respect to the fair value of acquired loans, as well as their unpaid principal balance (“Book Balance”) at acquisition date.
 
 
 
March 11, 2016
 
(In thousands)
 
Book Balance
 
Fair Value
 
Loans:
 
 
 
 
 
 
 
Single family residential real estate
 
$
38,304
 
$
37,367
 
Commercial real estate
 
 
172,531
 
 
167,105
 
Construction/development/land
 
 
20,546
 
 
18,108
 
Commercial loans
 
 
39,070
 
 
37,804
 
Consumer and other loans
 
 
3,385
 
 
3,110
 
Purchased credit-impaired
 
 
6,186
 
 
2,643
 
Total acquired loans
 
$
280,022
 
$
266,137
 
 
For the loans acquired we first segregated all acquired loans with specifically identified credit deficiency factor(s). The factors we considered to identify loans as Purchased Credit Impaired (“PCI”) loans were all acquired loans that were nonaccrual, 60 days or more past due, designated as Troubled Debt Restructured (“TDR”), graded “special mention” or “substandard.” These loans were then evaluated to determine estimated fair values as of the acquisition date. As required by generally accepted accounting principles, we are accounting for these loans pursuant to ASC Topic 310-30. The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and fair value of the loans as of March 11, 2016 for purchased credit impaired loans. Contractually required principal and interest payments have been adjusted for estimated prepayments.
 
(In thousands)
 
March 11, 2016
 
 
 
 
 
Contractually required principal and interest
 
$
8,031
 
Non-accretable difference
 
 
(4,820)
 
Cash flows expected to be collected
 
 
3,211
 
Accretable yield
 
 
(568)
 
Total purchased credit-impaired loan acquired
 
$
2,643
 
 
Loans without specifically identified credit deficiency factors are referred to as Purchased Unimpaired Loans (“PULs”) for disclosure purposes. These loans were then evaluated to determine estimated fair values as of the acquisition date. Although no specific credit deficiencies were identifiable, we believe there is an element of risk as to whether all contractual cash flows will be eventually received. Factors that were considered included the economic environment both nationally and locally as well as the real estate market particularly in Florida. We have applied ASC Topic 310-20 accounting treatment to the PULs.
 
The Company believes the deposits assumed from the acquisition have an intangible value. The Company applied ASC Topic 805, which prescribes the accounting for goodwill and other intangible assets such as core deposit intangibles, in a business combination. In determining the valuation amount, deposits were analyzed based on factors such as type of deposit, deposit retention, interest rates and age of deposit relationships.
 
The Company recognized goodwill of $32 million for this acquisition that is nondeductible for tax purposes. The acquisition of Floridian constitutes a business combination. Accordingly, the assets acquired and liabilities assumed are presented at their fair values. The determination of fair value required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change, and in some instances rely on use of third party experts.
 
Acquisition of BMO Harris Central Florida Offices, Deposits and Loans
 
On June 3, 2016, Seacoast Bank assumed approximately $314 million in deposits related to business and consumer banking customers at a deposit premium of 3.0% of the deposit balances, $63 million in business loans at a loan premium of 0.5%, and fourteen branches of BMO, located in the Orlando Metropolitan Statistical Area (“MSA”).
 
The fair values listed are subject to adjustment. The acquisition is accounted for under the acquisition method in accordance with ASC Topic 805, Business Combinations. Determining fair values of assets and liabilities, especially the loan portfolio and bank premises and leases related to the fourteen branches acquired, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values.
 
 
 
 
 
Measurement
 
 
 
 
 
Initial Report
 
Period
 
As Adjusted
 
Date of acquisition
 
June 3, 2016
 
Adjustments
 
June 3, 2016
 
 
 
 
 
(in thousands)
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Cash from BMO (net of payable)
 
$
234,094
 
$
0
 
$
234,094
 
Loans, net
 
 
62,671
 
 
0
 
 
62,671
 
Fixed assets
 
 
3,715
 
 
0
 
 
3,715
 
Core deposit intangibles
 
 
5,223
 
 
(135)
 
 
5,088
 
Goodwill
 
 
7,645
 
 
163
 
 
7,808
 
Other assets
 
 
952
 
 
(28)
 
 
924
 
 
 
$
314,300
 
$
0
 
$
314,300
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits
 
$
314,248
 
$
0
 
$
314,248
 
Other liabilities
 
 
52
 
 
0
 
 
52
 
 
 
$
314,300
 
$
0
 
$
314,300
 
 
The table below presents information with respect to the fair value of acquired loans, as well as their unpaid principal balance (“Book Balance”) at acquisition date.
 
 
 
June 3, 2016
 
(In thousands)
 
Book Balance
 
Fair Value
 
Loans:
 
 
 
 
 
 
 
Commercial real estate
 
$
31,564
 
$
31,200
 
Commercial loans
 
 
32,479
 
 
31,471
 
Purchased credit-impaired
 
 
0
 
 
0
 
Total acquired loans
 
$
64,043
 
$
62,671
 
 
At June 3, 2016, no loans acquired from BMO Harris were specifically identified with a credit deficiency factor(s). The factors we consider to identify loans as PCI loans are acquired loans that were nonaccrual, 60 days or more past due, designated as TDR, graded “special mention” or “substandard.” PULs were evaluated to determine estimated fair values as of the acquisition date. Although no specific credit deficiencies were identifiable, we believe there is an element of risk as to whether all contractual cash flows will be eventually received. Factors that were considered included the economic environment both nationally and locally as well as the real estate market particularly in Florida. We have applied ASC Topic 310-20 accounting treatment to the PULs.
 
The Company believes the deposits assumed from the acquisition have an intangible value. The Company applied ASC Topic 805, which prescribes the accounting for goodwill and other intangible assets such as core deposit intangibles, in a business combination. In determining the valuation amount, a third party analyzed the deposits based on factors such as type of deposit, deposit retention, interest rates and age of deposit relationships.
 
The Company recognized intangibles (including goodwill) of approximately $13 million for this acquisition that are deductible for tax purposes over a 15-year period. The acquisition of BMO’s Orlando banking operations by Seacoast Bank constitutes a business combination. Accordingly, the assets acquired and liabilities assumed are presented at their fair values. The determination of fair value requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change, and in some instances rely on use of third party experts.
 
Acquisition of GulfShore Bancshares, Inc.
 
On April 7, 2017, the Company completed its acquisition of GulfShore, the parent company of GulfShore Bank. Simultaneously, upon completion of the merger, GulfShore’s wholly owned subsidiary bank, GulfShore Bank, was merged with and into Seacoast Bank. GulfShore, headquartered in Tampa, Florida, operated 3 branches in Tampa and St. Petersburg, of which all have been retained as Seacoast locations.

The Company acquired 100% of the outstanding common stock of GulfShore. Under the terms of the definitive agreement, GulfShore shareholders received, for each share of GulfShore common stock, the combination of $1.47 in cash and 0.4807 shares of Seacoast common stock (based on Seacoast’s closing price of $23.94 per share on April 7, 2017).   
 
 
April 7, 2017
 
Shares exchanged for cash
 
$
8,033,999
 
 
 
 
 
 
Number of GulfShore Bancshares, Inc. common shares outstanding
 
 
5,464,308
 
Per share exchange ratio
 
 
0.4807
 
Number of shares of common stock issued
 
 
2,626,693
 
Multiplied by common stock price per share on April 7, 2017
 
$
23.94
 
Value of common stock issued
 
 
62,883,030
 
 
 
 
 
 
Total purchase price
 
$
70,917,029
 
 
Merger related charges summed to $4.3 million for the second quarter of 2017, primarily impacting salaries and wages, outsourced data processing costs, and legal and professional fees. All of these costs were expensed in the second quarter of 2017.
 
The acquisition was accounted for under the acquisition method in accordance with ASC Topic 805, Business Combinations. The Company recognized goodwill on this acquisition which is nondeductible for tax purposes as this acquisition was a nontaxable transaction. The goodwill was calculated based on the fair values of the assets acquired and liabilities assumed as of the acquisition date. The fair values initially assigned to assets acquired and liabilities assumed are preliminary and could change for up to one year after the closing date of the acquisition as new information and circumstances relative to closing date fair values are known. Determining fair values of assets and liabilities, especially the loan portfolio and foreclosed real estate, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values.
 
 
 
 
 
 
 
Initial Report
 
Date of acquisition
 
April 7, 2017
 
 
 
 
 
Assets:
 
 
 
 
Cash, interest bearing deposits and time deposits with other banks
 
$
55,540
 
Investment securities
 
 
316
 
Loans, net
 
 
250,884
 
Fixed assets
 
 
1,307
 
Other real estate owned
 
 
13
 
Core deposit intangibles
 
 
3,927
 
Goodwill
 
 
37,090
 
Other assets
 
 
8,572
 
 
 
$
357,649
 
 
 
 
 
 
Liabilities:
 
 
 
 
Deposits
 
$
285,350
 
Other liabilities
 
 
1,382
 
 
 
$
286,732
 
 
The table below presents information with respect to the fair value of acquired loans, as well as their unpaid principal balance (“Book Balance”) at acquisition date.
 
 
 
April 7, 2017
 
(In thousands)
 
Book Balance
 
Fair Value
 
Loans:
 
 
 
 
 
 
 
Single family residential real estate
 
$
101,281
 
$
99,598
 
Commercial real estate
 
 
106,729
 
 
103,908
 
Construction/development/land
 
 
13,175
 
 
11,653
 
Commercial loans
 
 
32,137
 
 
32,252
 
Consumer and other loans
 
 
3,554
 
 
3,473
 
Purchased credit-impaired
 
 
0
 
 
0
 
Total acquired loans
 
$
256,876
 
$
250,884
 
 
No loans acquired were specifically identified with credit deficiency factor(s), pursuant to ASC Topic 310-30. The factors we considered to identify loans as Purchased Credit Impaired (“PCI”) loans were all acquired loans that were nonaccrual, 60 days or more past due, designated as Troubled Debt Restructured (“TDR”), graded “special mention” or “substandard.”
 
Loans without specifically identified credit deficiency factors are referred to as Purchased Unimpaired Loans (“PULs”) for disclosure purposes. These loans were then evaluated to determine estimated fair values as of the acquisition date. Although no specific credit deficiencies were identifiable, we believe there is an element of risk as to whether all contractual cash flows will be eventually received. Factors that were considered included the economic environment both nationally and locally as well as the real estate market particularly in Florida. We have applied ASC Topic 310-20 accounting treatment to the PULs.
 
The Company believes the deposits assumed from the acquisition have an intangible value. The Company applied ASC Topic 805, which prescribes the accounting for goodwill and other intangible assets such as core deposit intangibles, in a business combination. In determining the valuation amount, deposits were analyzed based on factors such as type of deposit, deposit retention, interest rates and age of deposit relationships.
 
The Company recognized goodwill of $37 million for this acquisition that is nondeductible for tax purposes. The acquisition of GulfShore constitutes a business combination. Accordingly, the assets acquired and liabilities assumed are presented at their fair values. The determination of fair value required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change, and in some instances rely on use of third party experts. These fair value estimates are considered preliminary and are subject to change for up to one year after the closing date of the acquisition as additional information becomes available. For GulfShore, fair values as presented for securities, loans, fixed assets, other real estate owned, and certain other assets and liabilities are necessarily considered preliminary.
 
Operating results of the Company for the three months ended June 30, 2017 include the operation of the acquired assets and assumed liabilities since the date of acquisition of April 7, 2017. Pro-forma data for the three months ended June 30, 2016 and six months ended June 30, 2017 and 2016 listed in the table below present pro-forma information as if the acquisition occurred at the beginning of 2016.
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
(In thousands, except per share amounts)
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
 
Net interest income
 
$
36,720
 
$
84,935
 
$
69,201
 
Net income
 
 
5,877
 
 
16,384
 
 
10,566
 
EPS - basic
 
 
0.15
 
 
0.39
 
 
0.27
 
EPS - diluted
 
 
0.14
 
 
0.39
 
 
0.27
 
 
Proposed Acquisition of Palm Beach Community Bank
 
On May 4, 2017, the Company announced that it had entered into an agreement and plan of merger with Palm Beach Community Bank, a Florida Bank (“PBCB”). The agreement provides that PBCB will merge with and into Seacoast Bank. PBCB operates four branches in West Palm Beach, Florida with deposits of approximately $281 million and loans of $290 million. This acquisition is anticipated to close in the fourth quarter of 2017, subject to the receipt of approvals from regulatory authorities, the approval of PBCB shareholders and the satisfaction of other closing conditions.
 
Proposed Acquisition of NorthStar Bank
 
On May 18, 2017, the Company announced that it had entered into an agreement and plan of merger with NorthStar Banking Corporation (“NSBC”) the holding company for NorthStar Bank, a Florida Bank (“NorthStar”). The agreement provides that NorthStar will merge with and into Seacoast Bank. NorthStar operates three branches in Tampa, Florida with deposits of approximately $168 million and loans of $137 million. This acquisition is anticipated to close in the fourth quarter of 2017, subject to the receipt of approvals from regulatory authorities, the approval of NSBC shareholders and the satisfaction of other conditions.
v3.7.0.1
BASIS OF PRESENTATION (Policies)
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Use of Estimates
Use of Estimates
 
The preparation of these condensed consolidated financial statements required the use of certain estimates by management in determining the Company’s assets, liabilities, revenues and expenses. Actual results could differ from those estimates.
 
Specific areas, among others, requiring the application of management’s estimates include determination of the allowance for loan losses, the valuation of investment securities available for sale, fair value of impaired loans, contingent liabilities, fair value of other real estate owned, and the valuation of deferred tax assets. Actual results could differ from those estimates.
v3.7.0.1
BASIC AND DILUTED EARNINGS PER COMMON SHARE (Tables)
6 Months Ended
Jun. 30, 2017
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
For each of the three month periods ended June 30, 2017 and 2016, options to purchase 59,000 shares and 127,000 shares, respectively, were antidilutive and accordingly were excluded in determining diluted earnings per share.
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
(Dollars in thousands, except per share data)
 
2017
 
2016
 
2017
 
2016
 
Basic:
 
 
 
 
 
 
 
 
 
 
 
 
 
Income available to common shareholders
 
$
7,676
 
$
5,332
 
$
15,602
 
$
9,298
 
Average basic shares outstanding
 
 
42,841,152
 
 
37,470,071
 
 
40,851,273
 
 
36,159,473
 
Basic earnings per share
 
$
0.18
 
$
0.14
 
$
0.38
 
$
0.26
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
 
 
 
 
 
 
Income available to common shareholders
 
$
7,676
 
$
5,332
 
$
15,602
 
$
9,298
 
Average basic shares outstanding
 
 
42,841,152
 
 
37,470,071
 
 
40,851,273
 
 
36,159,473
 
Restricted stock and stock options
 
 
715,133
 
 
671,479
 
 
687,496
 
 
637,786
 
Average diluted shares outstanding
 
 
43,556,285
 
 
38,141,550
 
 
41,538,769
 
 
36,797,259
 
Diluted earnings per share
 
$
0.18
 
$
0.14
 
$
0.38
 
$
0.25
 
v3.7.0.1
SECURITIES (Tables)
6 Months Ended
Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Amortized Cost and Fair Value of Securities Available for Sale and Held for Investment
The amortized cost, unrealized gains and losses, and fair value of securities available for sale and held to maturity at June 30, 2017 and December 31, 2016 are summarized as follows:
 
 
 
June 30, 2017
 
 
 
Gross
 
Gross
 
Gross
 
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Fair
 
(Dollars in thousands)
 
Cost
 
Gains
 
Losses
 
Value
 
SECURITIES AVAILABLE FOR SALE
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. Government Sponsored Entities
 
$
10,907
 
$
300
 
$
0
 
$
11,207
 
Mortgage backed securities of U.S. Government Sponsored Entities
 
 
291,482
 
 
1,250
 
 
(2,632)
 
 
290,100
 
Collateralized mortgage obligations of U.S. Government Sponsored Entities
 
 
217,634
 
 
614
 
 
(3,951)
 
 
214,297
 
Commercial mortgage backed securities of U.S. Government Sponsored Entities
 
 
22,304
 
 
506
 
 
(9)
 
 
22,801
 
Private mortgage backed securities
 
 
32,860
 
 
864
 
 
(92)
 
 
33,632
 
Private collateralized mortgage obligations
 
 
55,828
 
 
616
 
 
(488)
 
 
55,956
 
Collateralized loan obligations
 
 
222,725
 
 
455
 
 
(41)
 
 
223,139
 
Obligations of state and political subdivisions
 
 
62,847
 
 
938
 
 
(385)
 
 
63,400
 
Corporate and other debt securities
 
 
70,930
 
 
676
 
 
(168)
 
 
71,438
 
Private commercial mortgage backed securities
 
 
30,780
 
 
189
 
 
(195)
 
 
30,774
 
 
 
$
1,018,297
 
$
6,408
 
$
(7,961)
 
$
1,016,744
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SECURITIES HELD TO MATURITY
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage backed securities of U.S. Government Sponsored Entities
 
$
183,877
 
$
1,413
 
$
(959)
 
$
184,331
 
Collateralized mortgage obligations of U.S. Government Sponsored Entities
 
 
135,596
 
 
461
 
 
(1,564)
 
 
134,493
 
Commercial mortgage backed securities of U.S. Government Sponsored Entities
 
 
17,420
 
 
585
 
 
0
 
 
18,005
 
Collateralized loan obligations
 
 
54,325
 
 
378
 
 
0
 
 
54,703
 
Private collateralized mortgage obligations
 
 
5,878
 
 
8
 
 
(61)
 
 
5,825
 
 
 
$
397,096
 
$
2,845
 
$
(2,584)
 
$
397,357
 
 
 
 
December 31, 2016
 
 
 
Gross
 
Gross
 
Gross
 
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Fair
 
(Dollars in thousands)
 
Cost
 
Gains
 
Losses
 
Value
 
SECURITIES AVAILABLE FOR SALE
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. Government Sponsored Entities
 
$
12,073
 
$
255
 
$
0
 
$
12,328
 
Mortgage backed securities of U.S. Government Sponsored Entities
 
 
287,726
 
 
585
 
 
(4,823)
 
 
283,488
 
Collateralized mortgage obligations of U.S. Government Sponsored Entities
 
 
238,805
 
 
314
 
 
(5,065)
 
 
234,054
 
Commercial mortgage backed securities of U.S. Government Sponsored Entities
 
 
22,351
 
 
222
 
 
(28)
 
 
22,545
 
Private mortgage backed securities
 
 
32,780
 
 
0
 
 
(791)
 
 
31,989
 
Private collateralized mortgage obligations
 
 
67,542
 
 
563
 
 
(816)
 
 
67,289
 
Collateralized loan obligations
 
 
124,716
 
 
838
 
 
(665)
 
 
124,889
 
Obligations of state and political subdivisions
 
 
63,161
 
 
622
 
 
(895)
 
 
62,888
 
Corporate and other debt securities
 
 
74,121
 
 
257
 
 
(517)
 
 
73,861
 
Private commercial mortgage backed securities
 
 
37,534
 
 
111
 
 
(473)
 
 
37,172
 
 
 
$
960,809
 
$
3,767
 
$
(14,073)
 
$
950,503
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SECURITIES HELD TO MATURITY
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage backed securities of U.S. Government Sponsored Entities
 
$
159,941
 
$
704
 
$
(1,243)
 
$
159,402
 
Collateralized mortgage obligations of U.S. Government Sponsored Entities
 
 
147,208
 
 
386
 
 
(2,630)
 
 
144,964
 
Commercial mortgage backed securities of U.S. Government Sponsored Entities
 
 
17,375
 
 
233
 
 
(74)
 
 
17,534
 
Collateralized loan obligations
 
 
41,547
 
 
430
 
 
(314)
 
 
41,663
 
Private collateralized mortgage obligations
 
 
6,427
 
 
0
 
 
(109)
 
 
6,318
 
 
 
$
372,498
 
$
1,753
 
$
(4,370)
 
$
369,881
 
Amortized Cost and Fair Value of Securities by Contractual Maturity
The amortized cost and fair value of securities available for sale and held to maturity at June 30, 2017, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because prepayments of the underlying collateral for these securities may occur, due to the right to call or repay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
 
 
 
Held to Maturity
 
Available for Sale
 
 
 
Amortized
 
Fair
 
Amortized
 
Fair
 
(Dollars in thousands)
 
Cost
 
Value
 
Cost
 
Value
 
Due in less than one year
 
$
0
 
$
0
 
$
10,076
 
$
10,318
 
Due after one year through five years
 
 
3,600
 
 
3,600
 
 
85,126
 
 
85,641
 
Due after five years through ten years
 
 
50,725
 
 
51,103
 
 
233,030
 
 
234,071
 
Due after ten years
 
 
0
 
 
0
 
 
28,636
 
 
28,605
 
 
 
 
54,325
 
 
54,703
 
 
356,868
 
 
358,635
 
Mortgage backed securities of U.S. Government Sponsored Entities
 
 
183,877
 
 
184,331
 
 
291,482
 
 
290,100
 
Collateralized mortgage obligations of  U.S. Government Sponsored Entities
 
 
135,596
 
 
134,493
 
 
217,634
 
 
214,297
 
Commercial mortgage backed securities of U.S. Government Sponsored Entities
 
 
17,420
 
 
18,005
 
 
22,304
 
 
22,801
 
Private mortgage backed securities
 
 
0
 
 
0
 
 
32,860
 
 
33,632
 
Private collateralized mortgage obligations
 
 
5,878
 
 
5,825
 
 
55,828
 
 
55,956
 
Other debt securities
 
 
0
 
 
0
 
 
10,541
 
 
10,549
 
Private commercial mortgage backed securities
 
 
0
 
 
0
 
 
30,780
 
 
30,774
 
 
 
$
397,096
 
$
397,357
 
$
1,018,297
 
$
1,016,744
 
Schedule of Unrealized Loss and Fair Value on Investments
The tables below indicate the amount of securities with unrealized losses and the period of time for which these losses were outstanding at June 30, 2017 and December 31, 2016, respectively.
 
 
 
June 30, 2017
 
 
 
Less than 12 months
 
12 months or longer
 
Total
 
 
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
(Dollars in thousands)
 
Value
 
Losses
 
Value
 
Losses
 
Value
 
Losses
 
Mortgage backed securities of U.S. Government Sponsored Entities
 
$
205,658
 
$
(2,975)
 
$
48,199
 
$
(616)
 
$
253,857
 
$
(3,591)
 
Collateralized mortgage obligations of U.S. Government Sponsored Entities
 
 
87,147
 
 
(1,438)
 
 
168,324
 
 
(4,077)
 
 
255,471
 
 
(5,515)
 
Commercial mortgage backed securities of U.S. Government Sponsored Entities
 
 
3,119
 
 
(9)
 
 
0
 
 
0
 
 
3,119
 
 
(9)
 
Private mortgage backed securities
 
 
0
 
 
0
 
 
6,864
 
 
(153)
 
 
6,864
 
 
(153)
 
Private collateralized mortgage obligations
 
 
0
 
 
0
 
 
26,129
 
 
(488)
 
 
26,129
 
 
(488)
 
Collateralized loan obligations
 
 
9,966
 
 
(34)
 
 
9,973
 
 
(7)
 
 
19,939
 
 
(41)
 
Obligations of state and political subdivisions
 
 
15,716
 
 
(287)
 
 
2,916
 
 
(98)
 
 
18,632
 
 
(385)
 
Corporate and other debt securities
 
 
12,873
 
 
(164)
 
 
2,388
 
 
(4)
 
 
15,261
 
 
(168)
 
Private commercial mortgage backed securities
 
 
11,126
 
 
(185)
 
 
1,965
 
 
(10)
 
 
13,091
 
 
(195)
 
Total temporarily impaired securities
 
$
345,605
 
$
(5,092)
 
$
266,758
 
$
(5,453)
 
$
612,363
 
$
(10,545)
 
 
 
 
December 31, 2016
 
 
 
Less than 12 months
 
12 months or longer
 
Total
 
 
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
(Dollars in thousands)
 
Value
 
Losses
 
Value
 
Losses
 
Value
 
Losses
 
Mortgage backed securities of U.S. Government Sponsored Entities
 
$
327,759
 
$
(5,991)
 
$
5,387
 
$
(75)
 
$
333,146
 
$
(6,066)
 
Collateralized mortgage obligations of U.S. Government Sponsored Entities
 
 
234,175
 
 
(5,599)
 
 
58,912
 
 
(2,096)
 
 
293,087
 
 
(7,695)
 
Commercial mortgage backed securities of U.S. Government Sponsored Entities
 
 
7,934
 
 
(102)
 
 
0
 
 
0
 
 
7,934
 
 
(102)
 
Private mortgage backed securities
 
 
0
 
 
0
 
 
36,848
 
 
(900)
 
 
36,848
 
 
(900)
 
Private collateralized mortgage obligations
 
 
1,460
 
 
0
 
 
38,417
 
 
(816)
 
 
39,877
 
 
(816)
 
Collateralized loan obligations
 
 
8,152
 
 
(41)
 
 
51,694
 
 
(938)
 
 
59,846
 
 
(979)
 
Obligations of state and political subdivisions
 
 
39,321
 
 
(895)
 
 
0
 
 
0
 
 
39,321
 
 
(895)
 
Corporate and other debt securities
 
 
33,008
 
 
(517)
 
 
0
 
 
0
 
 
33,008
 
 
(517)
 
Private commercial mortgage backed securities
 
 
12,667
 
 
(306)
 
 
7,139
 
 
(167)
 
 
19,806
 
 
(473)
 
Total temporarily impaired securities
 
$
664,476
 
$
(13,451)
 
$
198,397
 
$
(4,992)
 
$
862,873
 
$
(18,443)
 
v3.7.0.1
LOANS (Tables)
6 Months Ended
Jun. 30, 2017
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Information relating to portfolio loans, purchased credit impaired (“PCI”) loans, and purchased unimpaired loans (“PUL”) as of June 30, 2017 and December 31, 2016 is summarized as follows:
 
June 30, 2017
 
Portfolio Loans
 
PCI Loans
 
PUL's
 
Total
 
 
 
(In thousands)
 
Construction and land development
 
$
181,334
 
$
113
 
$
49,127
 
$
230,574
 
Commercial real estate
 
 
1,098,634
 
 
11,463
 
 
353,971
 
 
1,464,068
 
Residential real estate
 
 
874,753
 
 
702
 
 
115,689
 
 
991,144
 
Commercial and financial
 
 
393,213
 
 
854
 
 
71,071
 
 
465,138
 
Consumer
 
 
174,376
 
 
0
 
 
4,219
 
 
178,595
 
Other loans
 
 
556
 
 
0
 
 
0
 
 
556
 
NET LOAN BALANCES (1)
 
$
2,722,866
 
$
13,132
 
$
594,077
 
$
3,330,075
 
 
December 31, 2016
 
Portfolio Loans
 
PCI Loans
 
PUL's
 
Total
 
 
 
(In thousands)
 
Construction and land development
 
$
137,480
 
$
114
 
$
22,522
 
$
160,116
 
Commercial real estate
 
 
1,041,915
 
 
11,257
 
 
304,420
 
 
1,357,592
 
Residential real estate
 
 
784,290
 
 
684
 
 
51,813
 
 
836,787
 
Commercial and financial
 
 
308,731
 
 
941
 
 
60,917
 
 
370,589
 
Consumer
 
 
152,927
 
 
0
 
 
1,018
 
 
153,945
 
Other loans
 
 
507
 
 
0
 
 
0
 
 
507
 
NET LOAN BALANCES (1)
 
$
2,425,850
 
$
12,996
 
$
440,690
 
$
2,879,536
 
 
(1) Net loan balances as of June 30, 2017 and December 31, 2016 include deferred costs of $10.6 million for each period presented, respectively.
Contractually Required Principal And Interest Cash Payments Changes
Activity during the three months ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Reclassifications from
 
 
 
 
 
March 31,
 
 
 
 
 
 
 
nonaccretable
 
 
 
 
 
2017
 
Additions
 
Deletions
 
Accretion
 
difference
 
June 30, 2017
 
 
 
(In thousands)
 
Accretable yield
 
$
3,510
 
 
0
 
 
(10)
 
 
(451)
 
 
216
 
$
3,265
 
Recorded investment of acquired loans
 
$
12,982
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,132
 
Allowance for loan losses
 
 
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0
 
Recorded investment less allowance for loan losses
 
$
12,982
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,132
 
 
Activity during the six months ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Reclassifications from
 
 
 
 
 
December 31,
 
 
 
 
 
 
 
nonaccretable
 
 
 
 
 
2016
 
Additions
 
Deletions
 
Accretion
 
difference
 
June 30, 2017
 
 
 
(In thousands)
 
Accretable yield
 
$
3,807
 
 
0
 
 
(10)
 
 
(816)
 
 
284
 
$
3,265
 
Recorded investment of acquired loans
 
$
12,996
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,132
 
Allowance for loan losses
 
 
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0
 
Recorded investment less allowance for loan losses
 
$
12,996
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,132
 
 
Activity during the three months ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Reclassifications from
 
 
 
 
 
March 31,
 
 
 
 
 
 
 
nonaccretable
 
 
 
 
 
2016
 
Additions
 
Deletions
 
Accretion
 
difference
 
June 30, 2016
 
 
 
(In thousands)
 
Accretable yield
 
$
3,143
 
 
1,215
 
 
1,086
 
 
(770)
 
 
0
 
$
4,674
 
Recorded investment of acquired loans
 
$
16,531
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,652
 
Allowance for loan losses
 
 
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0
 
Recorded investment less allowance for loan losses
 
$
16,531
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,652
 
 
Activity during the six months ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Reclassifications from
 
 
 
 
 
December 31,
 
 
 
 
 
 
 
nonaccretable
 
 
 
 
 
2015
 
Additions
 
Deletions
 
Accretion
 
difference
 
June 30, 2016
 
 
 
(In thousands)
 
Accretable yield
 
$
2,610
 
 
1,831
 
 
1,271
 
 
(1,038)
 
 
0
 
$
4,674
 
Recorded investment of acquired loans
 
$
12,109
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,652
 
Allowance for loan losses
 
 
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0
 
Recorded investment less allowance for loan losses
 
$
12,109
 
 
 
 
 
 
 
 
 
 
 
 
 
$
13,652
 
Past Due Financing Receivables
The following tables present the contractual delinquency of the recorded investment in past due loans by class of loans as of June 30, 2017 and December 31, 2016:
 
 
 
 
 
 
 
Accruing
 
 
 
 
 
 
 
 
 
Accruing
 
Accruing
 
Greater
 
 
 
 
 
Total
 
June 30, 2017
 
30-59 Days
 
60-89 Days
 
Than
 
 
 
 
 
Financing
 
(In thousands)
 
Past Due
 
Past Due
 
90 Days
 
Nonaccrual
 
Current
 
Receivables
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
273
 
$
0
 
$
0
 
$
544
 
$
180,517
 
$
181,334
 
Commercial real estate
 
 
0
 
 
0
 
 
0
 
 
1,209
 
 
1,097,425
 
 
1,098,634
 
Residential real estate
 
 
68
 
 
65
 
 
0
 
 
8,655
 
 
865,965
 
 
874,753
 
Commercial and financial
 
 
125
 
 
0
 
 
0
 
 
0
 
 
393,088
 
 
393,213
 
Consumer
 
 
97
 
 
14
 
 
0
 
 
133
 
 
174,132
 
 
174,376
 
Other
 
 
0
 
 
0
 
 
0
 
 
0
 
 
556
 
 
556
 
Total
 
 
563
 
 
79
 
 
0
 
 
10,541
 
 
2,711,683
 
 
2,722,866
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchased Unimpaired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
0
 
 
0
 
 
0
 
 
125
 
 
49,002
 
 
49,127
 
Commercial real estate
 
 
437
 
 
0
 
 
0
 
 
743
 
 
352,791
 
 
353,971
 
Residential real estate
 
 
0
 
 
0
 
 
194
 
 
1,462
 
 
114,033
 
 
115,689
 
Commercial and financial
 
 
514
 
 
0
 
 
0
 
 
347
 
 
70,210
 
 
71,071
 
Consumer
 
 
0
 
 
0
 
 
0
 
 
0
 
 
4,219
 
 
4,219
 
Other
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
Total
 
 
951
 
 
0
 
 
194
 
 
2,677
 
 
590,255
 
 
594,077
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchased Credit Impaired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
0
 
 
0
 
 
0
 
 
0
 
 
113
 
 
113
 
Commercial real estate
 
 
0
 
 
0
 
 
0
 
 
3,761
 
 
7,702
 
 
11,463
 
Residential real estate
 
 
189
 
 
0
 
 
0
 
 
0
 
 
513
 
 
702
 
Commercial and financial
 
 
0
 
 
0
 
 
0
 
 
0
 
 
854
 
 
854
 
Consumer
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
Other
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
Total
 
 
189
 
 
0
 
 
0
 
 
3,761
 
 
9,182
 
 
13,132
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Loans
 
$
1,703
 
$
79
 
$
194
 
$
16,979
 
$
3,311,120
 
$
3,330,075
 
 
 
 
 
 
 
 
Accruing
 
 
 
 
 
 
 
 
 
Accruing
 
Accruing
 
Greater
 
 
 
 
 
Total
 
December 31, 2016
 
30-59 Days
 
60-89 Days
 
Than
 
 
 
 
 
Financing
 
(In thousands)
 
Past Due
 
Past Due
 
90 Days
 
Nonaccrual
 
Current
 
Receivables
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
0
 
$
0
 
$
0
 
$
438
 
$
137,042
 
$
137,480
 
Commercial real estate
 
 
78
 
 
171
 
 
0
 
 
1,784
 
 
1,039,882
 
 
1,041,915
 
Residential real estate
 
 
1,570
 
 
261
 
 
0
 
 
8,582
 
 
773,877
 
 
784,290
 
Commercial and financial
 
 
30
 
 
0
 
 
0
 
 
49
 
 
308,652
 
 
308,731
 
Consumer
 
 
29
 
 
59
 
 
0
 
 
170
 
 
152,669
 
 
152,927
 
Other
 
 
0
 
 
0
 
 
0
 
 
0
 
 
507
 
 
507
 
Total
 
 
1,707
 
 
491
 
 
0
 
 
11,023
 
 
2,412,629
 
 
2,425,850
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchased Unimpaired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
0
 
 
0
 
 
0
 
 
32
 
 
22,490
 
 
22,522
 
Commercial real estate
 
 
345
 
 
485
 
 
0
 
 
1,272
 
 
302,318
 
 
304,420
 
Residential real estate
 
 
153
 
 
0
 
 
0
 
 
1,262
 
 
50,398
 
 
51,813
 
Commercial and financial
 
 
39
 
 
328
 
 
0
 
 
197
 
 
60,353
 
 
60,917
 
Consumer
 
 
37
 
 
0
 
 
0
 
 
0
 
 
981
 
 
1,018
 
Other
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
Total
 
 
574
 
 
813
 
 
0
 
 
2,763
 
 
436,540
 
 
440,690
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchased Impaired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
0
 
 
0
 
 
0
 
 
0
 
 
114
 
 
114
 
Commercial real estate
 
 
0
 
 
0
 
 
0
 
 
4,285
 
 
6,972
 
 
11,257
 
Residential real estate
 
 
0
 
 
185
 
 
0
 
 
0
 
 
499
 
 
684
 
Commercial and financial
 
 
0
 
 
0
 
 
0
 
 
0
 
 
941
 
 
941
 
Consumer
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
Other
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
Total
 
 
0
 
 
185
 
 
0
 
 
4,285
 
 
8,526
 
 
12,996
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Loans
 
$
2,281
 
$
1,489
 
$
0
 
$
18,071
 
$
2,857,695
 
$
2,879,536
 
Financing Receivable Credit Quality Indicators
The following tables present the risk category of loans by class of loans based on the most recent analysis performed as of June 30, 2017 and December 31, 2016:
 
June 30, 2017
 
 
 
 
 
Construction
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
& Land
 
Commercial
 
Residential
 
and
 
Consumer
 
 
 
(In thousands)
 
Development
 
Real Estate
 
Real Estate
 
Financial
 
Loans
 
Total
 
Pass
 
$
216,965
 
$
1,426,634
 
$
965,708
 
$
453,838
 
$
177,470
 
$
3,240,615
 
Special mention
 
 
8,048
 
 
12,562
 
 
1,705
 
 
6,715
 
 
1,032
 
 
30,062
 
Substandard
 
 
4,631
 
 
13,364
 
 
3,274
 
 
3,981
 
 
168
 
 
25,418
 
Doubtful*
 
 
0
 
 
0
 
 
0
 
 
60
 
 
0
 
 
60
 
Nonaccrual
 
 
669
 
 
5,713
 
 
10,117
 
 
347
 
 
133
 
 
16,979
 
Pass-Troubled debt restructures
 
 
37
 
 
4,909
 
 
0
 
 
0
 
 
0
 
 
4,946
 
Troubled debt restructures
 
 
224
 
 
886
 
 
10,340
 
 
197
 
 
348
 
 
11,995
 
 
 
$
230,574
 
$
1,464,068
 
$
991,144
 
$
465,138
 
$
179,151
 
$
3,330,075
 
 
* Comprised of a single loan that paid off in July 2017.
 
December 31, 2016
 
 
 
 
 
Construction
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
& Land
 
Commercial
 
Residential
 
and
 
Consumer
 
 
 
(In thousands)
 
Development
 
Real Estate
 
Real Estate
 
Financial
 
Loans
 
Total
 
Pass
 
$
148,563
 
$
1,319,696
 
$
811,576
 
$
364,241
 
$
153,730
 
$
2,797,806
 
Special mention
 
 
5,037
 
 
17,184
 
 
1,780
 
 
3,949
 
 
67
 
 
28,017
 
Substandard
 
 
5,497
 
 
7,438
 
 
2,709
 
 
2,153
 
 
134
 
 
17,931
 
Doubtful
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
 
0
 
Nonaccrual
 
 
470
 
 
7,341
 
 
9,844
 
 
246
 
 
170
 
 
18,071
 
Pass-Troubled debt restructures
 
 
44
 
 
4,988
 
 
358
 
 
0
 
 
44
 
 
5,434
 
Troubled debt restructures
 
 
505
 
 
945
 
 
10,520
 
 
0
 
 
307
 
 
12,277
 
 
 
$
160,116
 
$
1,357,592
 
$
836,787
 
$
370,589
 
$
154,452
 
$
2,879,536
 
v3.7.0.1
IMPAIRED LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
6 Months Ended
Jun. 30, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]  
Troubled Debt Restructurings on Financing Receivables
The following table presents loans that were modified within the six months ending June 30, 2017:
 
 
 
 
 
Pre-
 
Post-
 
 
 
 
 
 
 
Modification
 
Modification
 
 
 
 
 
Number
 
Outstanding
 
Outstanding
 
Valuation
 
 
 
of
 
Recorded
 
Recorded
 
Allowance
 
(Dollars in thousands)
 
Contracts
 
Investment
 
Investment
 
Recorded
 
Construction and land development
 
 
1
 
$
52
 
$
46
 
$
6
 
Residential real estate
 
 
1
 
 
15
 
 
15
 
 
0
 
 
 
 
2
 
$
67
 
$
61
 
$
6
 
 
The following table presents loans that were modified within the six months ending June 30, 2016:
 
 
 
 
 
Pre-
 
Post-
 
 
 
 
 
 
 
Modification
 
Modification
 
 
 
 
 
Number
 
Outstanding
 
Outstanding
 
Valuation
 
 
 
of
 
Recorded
 
Recorded
 
Allowance
 
(Dollars in thousands)
 
Contracts
 
Investment
 
Investment
 
Recorded
 
Residential real estate
 
 
6
 
$
1,660
 
$
1,489
 
$
171
 
 
 
 
6
 
$
1,660
 
$
1,489
 
$
171
 
Impaired Financing Receivables
As of June 30, 2017 and December 31, 2016, the Company’s recorded investment in impaired loans (excluding PCI loans), the unpaid principal balance, and the related valuation allowance were as follows:
 
 
 
June 30, 2017
 
 
 
 
 
Unpaid
 
Related
 
 
 
Recorded
 
Principal
 
Valuation
 
(Dollars in thousands)
 
Investment
 
Balance
 
Allowance
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
577
 
$
879
 
$
0
 
Commercial real estate
 
 
2,791
 
 
4,134
 
 
0
 
Residential real estate
 
 
10,099
 
 
14,607
 
 
0
 
Commercial and financial
 
 
352
 
 
361
 
 
0
 
Consumer
 
 
127
 
 
200
 
 
0
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
355
 
 
367
 
 
145
 
Commercial real estate
 
 
4,964
 
 
4,970
 
 
244
 
Residential real estate
 
 
10,360
 
 
10,566
 
 
1,255
 
Commercial and financial
 
 
406
 
 
197
 
 
209
 
Consumer
 
 
355
 
 
355
 
 
58
 
Total:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
932
 
 
1,246
 
 
145
 
Commercial real estate
 
 
7,755
 
 
9,104
 
 
244
 
Residential real estate
 
 
20,459
 
 
25,173
 
 
1,255
 
Commercial and financial
 
 
758
 
 
558
 
 
209
 
Consumer
 
 
482
 
 
555
 
 
58
 
 
 
$
30,386
 
$
36,636
 
$
1,911
 
 
 
 
December 31, 2016
 
 
 
 
 
Unpaid
 
Related
 
 
 
Recorded
 
Principal
 
Valuation
 
(Dollars in thousands)
 
Investment
 
Balance
 
Allowance
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
$
226
 
$
321
 
$
0
 
Commercial real estate
 
 
3,267
 
 
4,813
 
 
0
 
Residential real estate
 
 
9,706
 
 
14,136
 
 
0
 
Commercial and financial
 
 
199
 
 
206
 
 
0
 
Consumer
 
 
0
 
 
0
 
 
0
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
51
 
 
51
 
 
0
 
Commercial real estate
 
 
6,937
 
 
6,949
 
 
395
 
Residential real estate
 
 
12,332
 
 
12,681
 
 
2,059
 
Commercial and financial
 
 
0
 
 
0
 
 
0
 
Consumer
 
 
0
 
 
0
 
 
0
 
Total:
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
277
 
 
372
 
 
0
 
Commercial real estate
 
 
10,204
 
 
11,762
 
 
395
 
Residential real estate
 
 
22,038
 
 
26,817
 
 
2,059
 
Commercial and financial
 
 
199
 
 
206
 
 
0
 
Consumer
 
 
0
 
 
0
 
 
0
 
 
 
$
32,718
 
$
39,157
 
$
2,454
 
 
For the three months ended June 30, 2017 and 2016, the Company’s average recorded investments in impaired loans (excluding PCI loans) and related interest income were as follows:
 
 
 
Three Months Ended
 
Three Months Ended
 
 
 
June 30, 2017
 
June 30, 2016
 
 
 
Average
 
Interest
 
Average
 
Interest
 
 
 
Recorded
 
Income
 
Recorded
 
Income
 
(Dollars in thousands)
 
Investment
 
Recognized
 
Investment
 
Recognized
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
$
538
 
$
11
 
$
214
 
$
0
 
Commercial real estate
 
 
2,521
 
 
40
 
 
1,860
 
 
2
 
Residential real estate
 
 
9,831
 
 
159
 
 
9,587
 
 
37
 
Commercial and financial
 
 
155
 
 
6
 
 
16
 
 
0
 
Consumer
 
 
154
 
 
3
 
 
183
 
 
1
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
279
 
 
2
 
 
634
 
 
6
 
Commercial real estate
 
 
5,745
 
 
39
 
 
6,906
 
 
73
 
Residential real estate
 
 
11,173
 
 
84
 
 
11,993
 
 
100
 
Commercial and financial
 
 
371
 
 
3
 
 
0
 
 
0
 
Consumer
 
 
311
 
 
7
 
 
356
 
 
5
 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
817
 
 
13
 
 
848
 
 
6
 
Commercial real estate
 
 
8,266
 
 
79
 
 
8,766
 
 
75
 
Residential real estate
 
 
21,004
 
 
243
 
 
21,580
 
 
137
 
Commercial and financial
 
 
526
 
 
9
 
 
16
 
 
0
 
Consumer
 
 
465
 
 
10
 
 
539
 
 
6
 
 
 
$
31,078
 
$
354
 
$
31,749
 
$
224
 
 
For the six months ended June 30, 2017 and 2016, the Company’s average recorded investments in impaired loans (excluding PCI loans) and related interest income were as follows:
 
 
 
Six Months Ended
 
Six Months Ended
 
 
 
June 30, 2017
 
June 30, 2016
 
 
 
Average
 
Interest
 
Average
 
Interest
 
 
 
Recorded
 
Income
 
Recorded
 
Income
 
(Dollars in thousands)
 
Investment
 
Recognized
 
Investment
 
Recognized
 
Impaired Loans with No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
$
431
 
$
22
 
$
179
 
$
0
 
Commercial real estate
 
 
2,747
 
 
79
 
 
2,063
 
 
5
 
Residential real estate
 
 
9,767
 
 
297
 
 
9,493
 
 
71
 
Commercial and financial
 
 
153
 
 
7
 
 
16
 
 
0
 
Consumer
 
 
105
 
 
7
 
 
212
 
 
1
 
Impaired Loans with an Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
197
 
 
5
 
 
702
 
 
13
 
Commercial real estate
 
 
6,207
 
 
108
 
 
6,970
 
 
147
 
Residential real estate
 
 
11,627
 
 
197
 
 
12,128
 
 
185
 
Commercial and financial
 
 
244
 
 
7
 
 
0
 
 
0
 
Consumer
 
 
204
 
 
10
 
 
353
 
 
9
 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction & land development
 
 
628
 
 
27
 
 
881
 
 
13
 
Commercial real estate
 
 
8,954
 
 
187
 
 
9,033
 
 
152
 
Residential real estate
 
 
21,394
 
 
494
 
 
21,621
 
 
256
 
Commercial and financial
 
 
397
 
 
14
 
 
16
 
 
0
 
Consumer
 
 
309
 
 
17
 
 
565
 
 
10
 
 
 
$
31,682
 
$
739
 
$
32,116
 
$
431
 
Allowance for Credit Losses on Financing Receivables
Activity in the allowance for loan losses (excluding PCI loans) for the three month and six month periods ended June 30, 2017 is summarized as follows:
 
 
 
Allowance for Loan Losses for the Three Months Ended June 30, 2017
 
 
 
 
 
Provision
 
 
 
 
 
Net
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
(Charge-Offs)
 
Ending
 
(Dollars in thousands)
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Recoveries
 
Balance
 
Construction & land development
 
$
1,352
 
$
128
 
$
0
 
$
94
 
$
94
 
$
1,574
 
Commercial real estate
 
 
9,861
 
 
(167)
 
 
(102)
 
 
331
 
 
229
 
 
9,923
 
Residential real estate
 
 
7,064
 
 
324
 
 
(64)
 
 
99
 
 
35
 
 
7,423
 
Commercial and financial
 
 
4,635
 
 
1,193
 
 
(447)
 
 
79
 
 
(368)
 
 
5,460
 
Consumer
 
 
1,650
 
 
(77)
 
 
(55)
 
 
102
 
 
47
 
 
1,620
 
 
 
$
24,562
 
$
1,401
 
$
(668)
 
$
705
 
$
37
 
$
26,000
 
 
 
 
Allowance for Loan Losses for the Six Months Ended June 30, 2017
 
 
 
 
 
Provision
 
 
 
 
 
Net
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
(Charge-Offs)
 
Ending
 
(Dollars in thousands)
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Recoveries
 
Balance
 
Construction & land development
 
$
1,219
 
$
192
 
$
0
 
$
163
 
$
163
 
$
1,574
 
Commercial real estate
 
 
9,273
 
 
313
 
 
(102)
 
 
439
 
 
337
 
 
9,923
 
Residential real estate
 
 
7,483
 
 
(100)
 
 
(187)
 
 
227
 
 
40
 
 
7,423
 
Commercial and financial
 
 
3,636
 
 
2,314
 
 
(616)
 
 
126
 
 
(490)
 
 
5,460
 
Consumer
 
 
1,789
 
 
(14)
 
 
(314)
 
 
159
 
 
(155)
 
 
1,620
 
 
 
$
23,400
 
$
2,705
 
$
(1,219)
 
$
1,114
 
$
(105)
 
$
26,000
 
 
Activity in the allowance for loan losses (excluding PCI loans) for the three month and six month periods ended June 30, 2016 is summarized as follows:
 
 
 
Allowance for Loan Losses for the Three Months Ended June 30, 2016
 
 
 
 
 
Provision
 
 
 
 
 
Net
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
(Charge-Offs)
 
Ending
 
(Dollars in thousands)
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Recoveries
 
Balance
 
Construction & land development
 
$
1,285
 
$
(239)
 
$
0
 
$
114
 
$
114
 
$
1,160
 
Commercial real estate
 
 
6,677
 
 
495
 
 
(3)
 
 
23
 
 
20
 
 
7,192
 
Residential real estate
 
 
8,512
 
 
(420)
 
 
(28)
 
 
235
 
 
207
 
 
8,299
 
Commercial and financial
 
 
1,991
 
 
566
 
 
(38)
 
 
72
 
 
34
 
 
2,591
 
Consumer
 
 
1,259
 
 
260
 
 
(53)
 
 
17
 
 
(36)
 
 
1,483
 
 
 
$
19,724
 
$
662
 
$
(122)
 
$
461
 
$
339
 
$
20,725
 
 
 
 
Allowance for Loan Losses for the Six Months Ended June 30, 2016
 
 
 
 
 
Provision
 
 
 
 
 
Net
 
 
 
 
 
Beginning
 
for Loan
 
Charge-
 
 
 
Charge-
 
Ending
 
(Dollars in thousands)
 
Balance
 
Losses
 
Offs
 
Recoveries
 
Offs
 
Balance
 
Construction & land development
 
$
1,151
 
$
(180)
 
$
0
 
$
189
 
$
189
 
$
1,160
 
Commercial real estate
 
 
6,756
 
 
510
 
 
(176)
 
 
102
 
 
(74)
 
 
7,192
 
Residential real estate
 
 
8,057
 
 
(10)
 
 
(145)
 
 
397
 
 
252
 
 
8,299
 
Commercial and financial
 
 
2,042
 
 
147
 
 
(93)
 
 
495
 
 
402
 
 
2,591
 
Consumer
 
 
1,122
 
 
394
 
 
(80)
 
 
47
 
 
(33)
 
 
1,483
 
 
 
$
19,128
 
$
861
 
$
(494)
 
$
1,230
 
$
736
 
$
20,725
 
Loan Portfolio And Related Allowance
The allowance for loan losses is composed of specific allowances for certain impaired loans and general allowances grouped into loan pools based on similar characteristics. The Company’s loan portfolio (excluding PCI loans) and related allowance at June 30, 2017 and December 31, 2016 is shown in the following tables:
 
 
 
At June 30, 2017
 
 
 
Individually Evaluated for
 
Collectively Evaluated for
 
 
 
 
 
 
 
Impairment
 
Impairment
 
Total
 
 
 
Recorded
 
Associated
 
Recorded
 
Associated
 
Recorded
 
Associated
 
(Dollars in thousands)
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Construction & land development
 
$
932
 
$
145
 
$
229,529
 
$
1,429
 
$
230,461
 
$
1,574
 
Commercial real estate
 
 
7,755
 
 
244
 
 
1,444,850
 
 
9,679
 
 
1,452,605
 
 
9,923
 
Residential real estate
 
 
20,459
 
 
1,255
 
 
969,983
 
 
6,168
 
 
990,442
 
 
7,423
 
Commercial and financial
 
 
758
 
 
209
 
 
463,526
 
 
5,251
 
 
464,284
 
 
5,460
 
Consumer
 
 
482
 
 
58
 
 
178,669
 
 
1,562
 
 
179,151
 
 
1,620
 
 
 
$
30,386
 
$
1,911
 
$
3,286,557
 
$
24,089
 
$
3,316,943
 
$
26,000
 
 
 
 
At December 31, 2016
 
 
 
Individually Evaluated for
 
Collectively Evaluated for
 
 
 
 
 
 
 
Impairment
 
Impairment
 
Total
 
 
 
Recorded
 
Associated
 
Recorded
 
Associated
 
Recorded
 
Associated
 
(Dollars in thousands)
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Construction & land development
 
$
277
 
$
0
 
$
159,839
 
$
1,219
 
$
160,116
 
$
1,219
 
Commercial real estate
 
 
10,204
 
 
395
 
 
1,335,832
 
 
8,878
 
 
1,346,036
 
 
9,273
 
Residential real estate
 
 
22,038
 
 
2,059
 
 
814,250
 
 
5,424
 
 
836,288
 
 
7,483
 
Commercial and financial
 
 
199
 
 
0
 
 
369,449
 
 
3,636
 
 
369,648
 
 
3,636
 
Consumer
 
 
0
 
 
0
 
 
154,452
 
 
1,789
 
 
154,452
 
 
1,789
 
 
 
$
32,718
 
$
2,454
 
$
2,833,822
 
$
20,946
 
$
2,866,540
 
$
23,400
 
PCI Loans [Member]  
Financing Receivable, Allowance for Credit Losses [Line Items]  
Loan Portfolio And Related Allowance
The table below summarizes PCI loans that were individually evaluated for impairment based on expected cash flows at June 30, 2017 and December 31, 2016:
 
 
 
PCI Loans Individually Evaluated for Impairment
 
 
 
June 30, 2017
 
December 31, 2016
 
 
 
Recorded
 
Associated
 
Recorded
 
Associated
 
(Dollars in thousands)
 
Investment
 
Allowance
 
Investment
 
Allowance
 
Construction & land development
 
$
113
 
$
0
 
$
114
 
$
0
 
Commercial real estate
 
 
11,463
 
 
0
 
 
11,257
 
 
0
 
Residential real estate
 
 
702
 
 
0
 
 
684
 
 
0
 
Commercial and financial
 
 
854
 
 
0
 
 
941
 
 
0
 
Consumer
 
 
0
 
 
0
 
 
0
 
 
0
 
 
 
$
13,132
 
$
0
 
$
12,996
 
$
0
 
v3.7.0.1
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables)
6 Months Ended
Jun. 30, 2017
Brokers and Dealers [Abstract]  
Schedule of Securities Financing Transactions
At June 30, 2017 and December 31, 2016, Company securities sold under agreements to repurchase and securities pledged were as follows by collateral type and maturity:
 
(Dollars in thousands)
 
Overnight and Continuous Maturity
 
 
 
June 30,
 
December 31,
 
 
 
2017
 
2016
 
Mortgage backed securities and collateralized mortgage  obligations of U.S. Government Sponsored Entities
 
$
167,558
 
$
204,202
 
v3.7.0.1
NONINTEREST INCOME AND EXPENSES (Tables)
6 Months Ended
Jun. 30, 2017
Noninterest Income and Expenses [Abstract]  
Summary of Noninterest Income and Expense
Detail of noninterest income and expenses as of the three and six months ended June 30, 2017 and 2016 follows:
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
(In thousands)
 
2017
 
2016
 
2017
 
2016
 
Noninterest income
 
 
 
 
 
 
 
 
 
 
 
 
 
Service charges on deposits
 
$
2,435
 
$
2,230
 
$
4,857
 
$
4,359
 
Trust income
 
 
917
 
 
838
 
 
1,797
 
 
1,644
 
Mortgage banking fees
 
 
1,272
 
 
1,364
 
 
2,824
 
 
2,363
 
Brokerage commissions and fees
 
 
351
 
 
470
 
 
728
 
 
1,101
 
Marine finance fees
 
 
326
 
 
279
 
 
460
 
 
420
 
Interchange income
 
 
2,671
 
 
2,370
 
 
5,165
 
 
4,587
 
Other deposit-based EFT fees
 
 
114
 
 
116
 
 
254
 
 
243
 
BOLI income
 
 
757
 
 
379
 
 
1,490
 
 
1,220
 
Other income
 
 
1,624
 
 
1,065
 
 
2,797
 
 
1,804
 
 
 
 
10,467
 
 
9,111
 
 
20,372
 
 
17,741
 
Securities gains, net
 
 
21
 
 
47
 
 
21
 
 
136
 
TOTAL
 
$
10,488
 
$
9,158
 
$
20,393
 
$
17,877
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest expense
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and wages
 
$
18,375
 
$
13,884
 
$
33,744
 
$
27,283
 
Employee benefits
 
 
2,935
 
 
2,521
 
 
6,003
 
 
5,003
 
Outsourced data processing costs
 
 
3,456
 
 
2,803
 
 
6,725
 
 
7,242
 
Telephone/data lines
 
 
648
 
 
539
 
 
1,180
 
 
1,067
 
Occupancy
 
 
4,421
 
 
3,645
 
 
7,578
 
 
6,617
 
Furniture and equipment
 
 
1,679
 
 
1,283
 
 
3,070
 
 
2,281
 
Marketing
 
 
1,074
 
 
957
 
 
1,996
 
 
2,006
 
Legal and professional fees
 
 
3,276
 
 
2,656
 
 
5,408
 
 
5,013
 
FDIC assessments
 
 
650
 
 
643
 
 
1,220
 
 
1,187
 
Amortization of intangibles
 
 
839
 
 
593
 
 
1,558
 
 
1,039
 
Asset disposition expense
 
 
136
 
 
160
 
 
189
 
 
250
 
Net loss (gain) on other real estate owned and repossessed assets
 
 
161
 
 
(201)
 
 
(185)
 
 
(252)
 
Early redemption cost for Federal Home Loan Bank borrowings
 
 
0
 
 
1,777
 
 
0
 
 
1,777
 
Other
 
 
3,975
 
 
3,548
 
 
7,885
 
 
6,636
 
TOTAL
 
$
41,625
 
$
34,808
 
$
76,371
 
$
67,149
 
v3.7.0.1
FAIR VALUE (Tables)
6 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Under ASC 820, fair value measurements for items measured at fair value on a recurring and nonrecurring basis at June 30, 2017 and December 31, 2016 included:
 
 
 
 
 
Quoted Prices
 
 
 
 
 
 
 
 
 
in Active
 
Significant
 
 
 
 
 
 
 
Markets for
 
Other
 
Significant
 
 
 
 
 
Identical
 
Observable
 
Unobservable
 
 
 
Fair Value
 
Assets
 
Inputs
 
Inputs
 
(Dollars in thousands)
 
Measurements
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
At June 30, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for sale securities (1)
 
$
1,016,744
 
$
100
 
$
1,016,644
 
$
0
 
Loans held for sale (2)
 
 
22,262
 
 
0
 
 
22,262
 
 
0
 
Loans (3)
 
 
10,710
 
 
0
 
 
10,304
 
 
406
 
Other real estate owned (4)
 
 
8,497
 
 
0
 
 
0
 
 
8,497
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for sale securities (1)
 
$
950,503
 
$
100
 
$
950,403
 
$
0
 
Loans held for sale (2)
 
 
15,332
 
 
0
 
 
15,332
 
 
0
 
Loans (3)
 
 
4,120
 
 
0
 
 
3,170
 
 
950
 
Other real estate owned (4)
 
 
9,949
 
 
0
 
 
0
 
 
9,949
 
____________
(1) See Note D for further detail of fair value of individual investment categories.
(2) Recurring fair value basis determined using observable market data.
(3) See Note F. Nonrecurring fair value adjustments to loans identified as impaired reflect full or partial write-downs that are based on the loan’s observable market price or current appraised value of the collateral in accordance with ASC 310.
(4) Fair value is measured on a nonrecurring basis in accordance with ASC 360.
Fair Value Measurements, Recurring and Nonrecurring
The carrying amount and fair value of the Company’s other significant financial instruments that are not measured at fair value on a recurring basis in the balance sheet as of June 30, 2017 and December 31, 2016 is as follows:
 
 
 
 
 
Markets for
 
Other
 
Significant
 
 
 
 
 
Identical
 
Observable
 
Unobservable
 
 
 
Carrying
 
Assets
 
Inputs
 
Inputs
 
(Dollars in thousands)
 
Amount
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
At June 30, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities held to maturity (1)
 
$
397,096
 
$
0
 
$
397,357
 
$
0
 
Time deposits with other banks
 
 
16,426
 
 
0
 
 
0
 
 
16,386
 
Loans, net
 
 
3,293,365
 
 
0
 
 
0
 
 
3,277,109
 
Financial Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposit liabilities
 
 
3,975,458
 
 
0
 
 
0
 
 
3,973,456
 
Subordinated debt
 
 
70,381
 
 
0
 
 
55,017
 
 
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities held to maturity (1)
 
$
372,498
 
$
0
 
$
369,881
 
$
0
 
Loans, net
 
 
2,852,016
 
 
0
 
 
0
 
 
2,840,993
 
Financial Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposit liabilities
 
 
3,523,245
 
 
0
 
 
0
 
 
3,523,322
 
Subordinated debt
 
 
70,241
 
 
0
 
 
54,908
 
 
0
 
 
(1) See Note D for further detail of fair value of individual investment categories.
Schedule of contractual balance and gains or losses aggregate fair value
Loans held for sale were as follows at June 30, 2017 and December 31, 2016:
 
 
 
June 30,
 
December 31,
 
(Dollars in thousands)
 
2017
 
2016
 
Aggregate fair value
 
$
22,262
 
$
15,332
 
Contractual balance
 
 
21,640
 
 
14,904
 
Gains (losses)
 
 
622
 
 
428
 
v3.7.0.1
BUSINESS COMBINATIONS (Tables)
6 Months Ended
Jun. 30, 2017
Business Acquisition [Line Items]  
Schedule of summarizing the purchase price calculation
 
The following table represents the purchase price paid to Floridian shareholders in connection with the acquisition:
 
 
 
March 11, 2016
 
Shares exchanged for cash
 
$
26,699,000
 
 
 
 
 
 
Number of Floridian Financial Group, Inc. common shares outstanding
 
 
6,222,119
 
Per share exchange ratio
 
 
0.5289
 
Number of shares of common stock issued
 
 
3,291,066
 
Multiplied by common stock price per share on March 11, 2016
 
$
15.47
 
Value of common stock issued
 
 
50,912,791
 
 
 
 
 
 
Total purchase price
 
$
77,611,791
 
Schedule of Business Acquisitions, by Acquisition
The acquisition was accounted for under the acquisition method in accordance with ASC Topic 805, Business Combinations. The Company recognized goodwill on this acquisition which is nondeductible for tax purposes as this acquisition was a nontaxable transaction. The goodwill was calculated based on the fair values of the assets acquired and liabilities assumed as of the acquisition date. Loans that were nonaccrual and all loan relationships identified as impaired as of the acquisition date were considered by management to be credit impaired and were accounted for pursuant to ASC Topic 310-30.
 
 
 
 
 
Measurement
 
 
 
 
 
Initial Report
 
Period
 
As Adjusted
 
Date of acquisition
 
March 11, 2016
 
Adjustments
 
March 11, 2016
 
 
 
 
 
(in thousands)
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Cash
 
$
28,243
 
$
0
 
$
28,243
 
Investment securities
 
 
66,912
 
 
95
 
 
67,007
 
Loans, net
 
 
268,249
 
 
(2,112)
 
 
266,137
 
Fixed assets
 
 
7,801
 
 
(628)
 
 
7,173
 
Core deposit intangibles
 
 
3,375
 
 
0
 
 
3,375
 
Goodwill
 
 
29,985
 
 
1,647
 
 
31,632
 
Other assets
 
 
12,879
 
 
998
 
 
13,877
 
 
 
$
417,444
 
$
0
 
$
417,444
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits
 
$
337,341
 
$
0
 
$
337,341
 
Other liabilities
 
 
2,492
 
 
0
 
 
2,492
 
 
 
$
339,833
 
$
0
 
$
339,833
 
Fair Value, Assets Measured on Recurring Basis
The table below presents information with respect to the fair value of acquired loans, as well as their unpaid principal balance (“Book Balance”) at acquisition date.
 
 
 
March 11, 2016
 
(In thousands)
 
Book Balance
 
Fair Value
 
Loans:
 
 
 
 
 
 
 
Single family residential real estate
 
$
38,304
 
$
37,367
 
Commercial real estate
 
 
172,531
 
 
167,105
 
Construction/development/land
 
 
20,546
 
 
18,108
 
Commercial loans
 
 
39,070
 
 
37,804
 
Consumer and other loans
 
 
3,385
 
 
3,110
 
Purchased credit-impaired
 
 
6,186
 
 
2,643
 
Total acquired loans
 
$
280,022
 
$
266,137
 
Schedule of Contractually required principal and interest payments
Contractually required principal and interest payments have been adjusted for estimated prepayments.
 
(In thousands)
 
March 11, 2016
 
 
 
 
 
Contractually required principal and interest
 
$
8,031
 
Non-accretable difference
 
 
(4,820)
 
Cash flows expected to be collected
 
 
3,211
 
Accretable yield
 
 
(568)
 
Total purchased credit-impaired loan acquired
 
$
2,643
 
BMO Harris Bank [Member]  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition
The fair values listed are subject to adjustment. The acquisition is accounted for under the acquisition method in accordance with ASC Topic 805, Business Combinations. Determining fair values of assets and liabilities, especially the loan portfolio and bank premises and leases related to the fourteen branches acquired, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values.
 
 
 
 
 
Measurement
 
 
 
 
 
Initial Report
 
Period
 
As Adjusted
 
Date of acquisition
 
June 3, 2016
 
Adjustments
 
June 3, 2016
 
 
 
 
 
(in thousands)
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Cash from BMO (net of payable)
 
$
234,094
 
$
0
 
$
234,094
 
Loans, net
 
 
62,671
 
 
0
 
 
62,671
 
Fixed assets
 
 
3,715
 
 
0
 
 
3,715
 
Core deposit intangibles
 
 
5,223
 
 
(135)
 
 
5,088
 
Goodwill
 
 
7,645
 
 
163
 
 
7,808
 
Other assets
 
 
952
 
 
(28)
 
 
924
 
 
 
$
314,300
 
$
0
 
$
314,300
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits
 
$
314,248
 
$
0
 
$
314,248
 
Other liabilities
 
 
52
 
 
0
 
 
52
 
 
 
$
314,300
 
$
0
 
$
314,300
 
 
The table below presents information with respect to the fair value of acquired loans, as well as their unpaid principal balance (“Book Balance”) at acquisition date.
 
 
 
June 3, 2016
 
(In thousands)
 
Book Balance
 
Fair Value
 
Loans:
 
 
 
 
 
 
 
Commercial real estate
 
$
31,564
 
$
31,200
 
Commercial loans
 
 
32,479
 
 
31,471
 
Purchased credit-impaired
 
 
0
 
 
0
 
Total acquired loans
 
$
64,043
 
$
62,671
 
Floridian Financial Group Inc [Member]  
Business Acquisition [Line Items]  
Schedule of summarizing the purchase price calculation
The Company acquired 100% of the outstanding common stock of GulfShore. Under the terms of the definitive agreement, GulfShore shareholders received, for each share of GulfShore common stock, the combination of $1.47 in cash and 0.4807 shares of Seacoast common stock (based on Seacoast’s closing price of $23.94 per share on April 7, 2017).   
 
 
April 7, 2017
 
Shares exchanged for cash
 
$
8,033,999
 
 
 
 
 
 
Number of GulfShore Bancshares, Inc. common shares outstanding
 
 
5,464,308
 
Per share exchange ratio
 
 
0.4807
 
Number of shares of common stock issued
 
 
2,626,693
 
Multiplied by common stock price per share on April 7, 2017
 
$
23.94
 
Value of common stock issued
 
 
62,883,030
 
 
 
 
 
 
Total purchase price
 
$
70,917,029
 
Gulf Shore Banc shares Inc [Member]  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition
The acquisition was accounted for under the acquisition method in accordance with ASC Topic 805, Business Combinations. The Company recognized goodwill on this acquisition which is nondeductible for tax purposes as this acquisition was a nontaxable transaction. The goodwill was calculated based on the fair values of the assets acquired and liabilities assumed as of the acquisition date. The fair values initially assigned to assets acquired and liabilities assumed are preliminary and could change for up to one year after the closing date of the acquisition as new information and circumstances relative to closing date fair values are known. Determining fair values of assets and liabilities, especially the loan portfolio and foreclosed real estate, is a complicated process involving significant judgment regarding methods and assumptions used to calculate estimated fair values.
 
 
 
 
 
 
 
Initial Report
 
Date of acquisition
 
April 7, 2017
 
 
 
 
 
Assets:
 
 
 
 
Cash, interest bearing deposits and time deposits with other banks
 
$
55,540
 
Investment securities
 
 
316
 
Loans, net
 
 
250,884
 
Fixed assets
 
 
1,307
 
Other real estate owned
 
 
13
 
Core deposit intangibles
 
 
3,927
 
Goodwill
 
 
37,090
 
Other assets
 
 
8,572
 
 
 
$
357,649
 
 
 
 
 
 
Liabilities:
 
 
 
 
Deposits
 
$
285,350
 
Other liabilities
 
 
1,382
 
 
 
$
286,732
 
 
The table below presents information with respect to the fair value of acquired loans, as well as their unpaid principal balance (“Book Balance”) at acquisition date.
 
 
 
April 7, 2017
 
(In thousands)
 
Book Balance
 
Fair Value
 
Loans:
 
 
 
 
 
 
 
Single family residential real estate
 
$
101,281
 
$
99,598
 
Commercial real estate
 
 
106,729
 
 
103,908
 
Construction/development/land
 
 
13,175
 
 
11,653
 
Commercial loans
 
 
32,137
 
 
32,252
 
Consumer and other loans
 
 
3,554
 
 
3,473
 
Purchased credit-impaired
 
 
0
 
 
0
 
Total acquired loans
 
$
256,876
 
$
250,884
 
Business Acquisition, Pro Forma Information
Pro-forma data for the three months ended June 30, 2016 and six months ended June 30, 2017 and 2016 listed in the table below present pro-forma information as if the acquisition occurred at the beginning of 2016.
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
(In thousands, except per share amounts)
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
 
Net interest income
 
$
36,720
 
$
84,935
 
$
69,201
 
Net income
 
 
5,877
 
 
16,384
 
 
10,566
 
EPS - basic
 
 
0.15
 
 
0.39
 
 
0.27
 
EPS - diluted
 
 
0.14
 
 
0.39
 
 
0.27
 
v3.7.0.1
BASIC AND DILUTED EARNINGS PER COMMON SHARE - Additional Information (Details) - shares
3 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 59,000 127,000
v3.7.0.1
BASIC AND DILUTED EARNINGS PER COMMON SHARE - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Basic:        
Income available to common shareholders $ 7,676 $ 5,332 $ 15,602 $ 9,298
Average basic shares outstanding 42,841,152 37,470,071 40,851,273 36,159,473
Basic earnings per share $ 0.18 $ 0.14 $ 0.38 $ 0.26
Diluted:        
Income available to common shareholders $ 7,676 $ 5,332 $ 15,602 $ 9,298
Average basic shares outstanding 42,841,152 37,470,071 40,851,273 36,159,473
Restricted stock and stock options 715,133 671,479 687,496 637,786
Average diluted shares outstanding 43,556,285 38,141,550 41,538,769 36,797,259
Diluted earnings per share $ 0.18 $ 0.14 $ 0.38 $ 0.25
v3.7.0.1
SECURITIES - Additional Information (Details) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2017
Mar. 31, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2014
Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]              
Proceeds from Sale of Available-for-sale Securities, Debt       $ 3,820,000 $ 12,211,000    
Available-for-sale Securities, Gross Realized Gains $ 1,700,000   $ 47,000 21,000 147,000    
Available-for-sale Securities, Gross Realized Losses 0   $ 0 0 $ 11,000    
Federal Home Loan Bank Stock and Federal Reserve Bank Stock 36,400,000     36,400,000      
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value 612,363,000     612,363,000     $ 862,873,000
Accumulated unrealized losses 10,545,000     10,545,000     18,443,000
Securities Available For Sale Transferred To Held-To-Maturity       66,900,000   $ 158,800,000  
Available For Sale Securities Transferred To Held To Maturity Securities Unrealized Gain Loss       3,100,000   $ 3,100,000  
Trading Securities, Unrealized Holding Loss       1,600,000      
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value 345,605,000     345,605,000     664,476,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss 5,092,000     5,092,000     13,451,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value 266,758,000     266,758,000     198,397,000
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss $ 5,453,000     $ 5,453,000     $ 4,992,000
Common Stock, Shares, Outstanding 43,458,973     43,458,973     38,021,835
Stock Issued During Period, Value, Conversion of Convertible Securities, Net of Adjustments, Total   $ 6,200,000          
Common Class B [Member]              
Schedule of Available-for-sale Securities [Line Items]              
Common Stock, Shares, Outstanding 11,330 211,330   11,330      
Stock Issued During Period, Shares, Conversion of Convertible Securities   200,000          
Common Class A [Member]              
Schedule of Available-for-sale Securities [Line Items]              
Debt Instrument, Convertible, Conversion Price   $ 1.6483          
Stock Issued During Period, Shares, Conversion of Convertible Securities   348,335          
Available-for-sale Securities [Member]              
Schedule of Available-for-sale Securities [Line Items]              
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value $ 1,600,000     $ 1,600,000      
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value 7,400,000     7,400,000     $ 22,800,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss 100,000     100,000     400,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value 7,400,000     7,400,000     $ 0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss 100,000     100,000      
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value 0     0      
Carrying Amount [Member]              
Schedule of Available-for-sale Securities [Line Items]              
Securities pledged as collateral 183,300,000     183,300,000      
Carrying Amount [Member] | Repurchase Agreement [Member]              
Schedule of Available-for-sale Securities [Line Items]              
Securities pledged as collateral 167,600,000     167,600,000      
Private Collateralized Securities [Member]              
Schedule of Available-for-sale Securities [Line Items]              
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value 512,400,000     512,400,000      
Accumulated unrealized losses 9,100,000     9,100,000      
Seasoned Residential Collateral Of Us Government Sponsored Entities [Member]              
Schedule of Available-for-sale Securities [Line Items]              
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value 33,000,000     33,000,000      
Accumulated unrealized losses $ 600,000     $ 600,000      
v3.7.0.1
SECURITIES - Amortized Cost and Fair Value of Securities Available for Sale and Held for Investment (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
Amortized cost and fair value of securities available for sale and held for investment    
Gross Amortized Cost, Available for Sale $ 1,018,297 $ 960,809
Gross Unrealized Gains, Available for Sale 6,408 3,767
Gross Unrealized Losses, Available for Sale (7,961) (14,073)
Fair Value, Available for Sale 1,016,744 950,503
Gross Amortized Cost, Held for Investment Securities 397,096 372,498
Gross Unrealized Gains, Held for Investment Securities 2,845 1,753
Gross Unrealized Losses, Held for Investment Securities (2,584) (4,370)
Fair Value, Held for Investment Securities 397,357 369,881
U.S. Treasury Securities and obligations of U.S. Government Sponsored Entities [Member]    
Amortized cost and fair value of securities available for sale and held for investment    
Gross Amortized Cost, Available for Sale 10,907 12,073
Gross Unrealized Gains, Available for Sale 300 255
Gross Unrealized Losses, Available for Sale 0 0
Fair Value, Available for Sale 11,207 12,328
Mortgage-backed securities of U.S. Government Sponsored Entities [Member]    
Amortized cost and fair value of securities available for sale and held for investment    
Gross Amortized Cost, Available for Sale 291,482 287,726
Gross Unrealized Gains, Available for Sale 1,250 585
Gross Unrealized Losses, Available for Sale (2,632) (4,823)
Fair Value, Available for Sale 290,100 283,488
Gross Amortized Cost, Held for Investment Securities 183,877 159,941
Gross Unrealized Gains, Held for Investment Securities 1,413 704
Gross Unrealized Losses, Held for Investment Securities (959) (1,243)
Fair Value, Held for Investment Securities 184,331 159,402
Collateralized Mortgage Obligations Of US Government Sponsored Entities [Member]    
Amortized cost and fair value of securities available for sale and held for investment    
Gross Amortized Cost, Available for Sale 217,634 238,805
Gross Unrealized Gains, Available for Sale 614 314
Gross Unrealized Losses, Available for Sale (3,951) (5,065)
Fair Value, Available for Sale 214,297 234,054
Gross Amortized Cost, Held for Investment Securities 135,596 147,208
Gross Unrealized Gains, Held for Investment Securities 461 386
Gross Unrealized Losses, Held for Investment Securities (1,564) (2,630)
Fair Value, Held for Investment Securities 134,493 144,964
Commercial mortgage backed securities of U.S. Government Sponsored Entities [Member]    
Amortized cost and fair value of securities available for sale and held for investment    
Gross Amortized Cost, Available for Sale 22,304 22,351
Gross Unrealized Gains, Available for Sale 506 222
Gross Unrealized Losses, Available for Sale (9) (28)
Fair Value, Available for Sale 22,801 22,545
Gross Amortized Cost, Held for Investment Securities 17,420 17,375
Gross Unrealized Gains, Held for Investment Securities 585 233
Gross Unrealized Losses, Held for Investment Securities 0 (74)
Fair Value, Held for Investment Securities 18,005 17,534
Private mortgage backed securities [Member]    
Amortized cost and fair value of securities available for sale and held for investment    
Gross Amortized Cost, Available for Sale 32,860 32,780
Gross Unrealized Gains, Available for Sale 864 0
Gross Unrealized Losses, Available for Sale (92) (791)
Fair Value, Available for Sale 33,632 31,989
Fair Value, Held for Investment Securities 0  
Private collateralized mortgage obligations [Member]    
Amortized cost and fair value of securities available for sale and held for investment    
Gross Amortized Cost, Available for Sale 55,828 67,542
Gross Unrealized Gains, Available for Sale 616 563
Gross Unrealized Losses, Available for Sale (488) (816)
Fair Value, Available for Sale 55,956 67,289
Gross Amortized Cost, Held for Investment Securities 5,878 6,427
Gross Unrealized Gains, Held for Investment Securities 8 0
Gross Unrealized Losses, Held for Investment Securities (61) (109)
Fair Value, Held for Investment Securities 5,825 6,318
Collateralized loan obligations [Member]    
Amortized cost and fair value of securities available for sale and held for investment    
Gross Amortized Cost, Available for Sale 222,725 124,716
Gross Unrealized Gains, Available for Sale 455 838
Gross Unrealized Losses, Available for Sale (41) (665)
Fair Value, Available for Sale 223,139 124,889
Gross Amortized Cost, Held for Investment Securities 54,325 41,547
Gross Unrealized Gains, Held for Investment Securities 378 430
Gross Unrealized Losses, Held for Investment Securities 0 (314)
Fair Value, Held for Investment Securities 54,703 41,663
Obligations of state and political subdivisions [Member]    
Amortized cost and fair value of securities available for sale and held for investment    
Gross Amortized Cost, Available for Sale 62,847 63,161
Gross Unrealized Gains, Available for Sale 938 622
Gross Unrealized Losses, Available for Sale (385) (895)
Fair Value, Available for Sale 63,400 62,888
Corporate and other debt securities [Member]    
Amortized cost and fair value of securities available for sale and held for investment    
Gross Amortized Cost, Available for Sale 70,930 74,121
Gross Unrealized Gains, Available for Sale 676 257
Gross Unrealized Losses, Available for Sale (168) (517)
Fair Value, Available for Sale 71,438 73,861
Fair Value, Held for Investment Securities 0  
Private commercial mortgage backed securities [Member]    
Amortized cost and fair value of securities available for sale and held for investment    
Gross Amortized Cost, Available for Sale 30,780 37,534
Gross Unrealized Gains, Available for Sale 189 111
Gross Unrealized Losses, Available for Sale (195) (473)
Fair Value, Available for Sale 30,774 $ 37,172
Fair Value, Held for Investment Securities $ 0  
v3.7.0.1
SECURITIES - Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
Schedule of Held-to-maturity Securities [Line Items]    
Held for Investment, Amortized Cost, Total $ 397,096 $ 372,498
Held for Investment, Fair Value, Total 397,357 369,881
Available for Sale, Amortized Cost, Total 1,018,297  
Available for Sale, Fair Value, Total 1,016,744 950,503
Collateralized Loan Obligations [Member]    
Schedule of Held-to-maturity Securities [Line Items]    
Held for Investment, Amortized Cost, Due in less than one year 0  
Held for Investment, Fair Value, Due in less than one year 0  
Available for Sale Amortized Cost, Due in less than one year 10,076  
Available for Sale, Fair Value, Due in less than one year 10,318  
Held for Investment, Amortized Cost, Due after one year through five years 3,600  
Held for Investment, Fair Value, Due after one year through five years 3,600  
Available for Sale, Amortized Cost, Due after one year through five years 85,126  
Available for Sale, Fair Value, Due after one year through five years 85,641  
Held for Investment, Amortized Cost, Due after five years through ten years 50,725  
Held for Investment, Fair Value, Due after five years through ten years 51,103  
Available for Sale, Amortized Cost, Due after five years through ten years 233,030  
Available for Sale, Fair Value, Due after five years through ten years 234,071  
Held for Investment, Amortized Cost, Due after ten years 0  
Held for Investment, Fair Value, Due after ten years 0  
Available for Sale, Amortized Cost, Due after ten years 28,636  
Available for Sale, Fair Value, Due after ten years 28,605  
Held for Investment, Amortized Cost, Total 54,325  
Held for Investment, Fair Value, Total 54,703  
Available for Sale, Amortized Cost, Total 356,868  
Available for Sale, Fair Value, Total 358,635  
Mortgage-backed securities of U.S. Government Sponsored Entities [Member]    
Schedule of Held-to-maturity Securities [Line Items]    
Held for Investment, Amortized Cost, Total 183,877  
Held for Investment, Fair Value, Total 184,331 159,402
Available for Sale, Amortized Cost, Total 291,482  
Available for Sale, Fair Value, Total 290,100 283,488
Collateralized Mortgage Obligations Of US Government Sponsored Entities [Member]    
Schedule of Held-to-maturity Securities [Line Items]    
Held for Investment, Amortized Cost, Total 135,596  
Held for Investment, Fair Value, Total 134,493 144,964
Available for Sale, Amortized Cost, Total 217,634  
Available for Sale, Fair Value, Total 214,297 234,054
Commercial mortgage backed securities of U.S. Government Sponsored Entities [Member]    
Schedule of Held-to-maturity Securities [Line Items]    
Held for Investment, Amortized Cost, Total 17,420  
Held for Investment, Fair Value, Total 18,005 17,534
Available for Sale, Amortized Cost, Total 22,304  
Available for Sale, Fair Value, Total 22,801 22,545
Private mortgage backed securities [Member]    
Schedule of Held-to-maturity Securities [Line Items]    
Held for Investment, Amortized Cost, Total 0  
Held for Investment, Fair Value, Total 0  
Available for Sale, Amortized Cost, Total 32,860  
Available for Sale, Fair Value, Total 33,632 31,989
Private collateralized mortgage obligations [Member]    
Schedule of Held-to-maturity Securities [Line Items]    
Held for Investment, Amortized Cost, Total 5,878  
Held for Investment, Fair Value, Total 5,825 6,318
Available for Sale, Amortized Cost, Total 55,828  
Available for Sale, Fair Value, Total 55,956 67,289
Other debt securities [Member]    
Schedule of Held-to-maturity Securities [Line Items]    
Held for Investment, Amortized Cost, Total 0  
Held for Investment, Fair Value, Total 0  
Available for Sale, Amortized Cost, Total 10,541  
Available for Sale, Fair Value, Total 71,438 73,861
Private commercial mortgage backed securities [Member]    
Schedule of Held-to-maturity Securities [Line Items]    
Held for Investment, Amortized Cost, Total 0  
Held for Investment, Fair Value, Total 0  
Available for Sale, Amortized Cost, Total 30,780  
Available for Sale, Fair Value, Total $ 30,774 $ 37,172
v3.7.0.1
SECURITIES - Schedule of Unrealized Loss and Fair Value on Investments (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
Fair Value    
Less than 12 months $ 345,605 $ 664,476
12 months or longer 266,758 198,397
Total 612,363 862,873
Unrealized Losses    
Less than 12 months (5,092) (13,451)
12 months or longer (5,453) (4,992)
Total (10,545) (18,443)
Collateralized Loan Obligations [Member]    
Fair Value    
Less than 12 months 9,966 8,152
12 months or longer 9,973 51,694
Total 19,939 59,846
Unrealized Losses    
Less than 12 months (34) (41)
12 months or longer (7) (938)
Total (41) (979)
Mortgage-backed securities of U.S. Government Sponsored Entities [Member]    
Fair Value    
Less than 12 months 205,658 327,759
12 months or longer 48,199 5,387
Total 253,857 333,146
Unrealized Losses    
Less than 12 months (2,975) (5,991)
12 months or longer (616) (75)
Total (3,591) (6,066)
Collateralized Mortgage Obligations Of US Government Sponsored Entities [Member]    
Fair Value    
Less than 12 months 87,147 234,175
12 months or longer 168,324 58,912
Total 255,471 293,087
Unrealized Losses    
Less than 12 months (1,438) (5,599)
12 months or longer (4,077) (2,096)
Total (5,515) (7,695)
Commercial mortgage backed securities of U.S. Government Sponsored Entities [Member]    
Fair Value    
Less than 12 months 3,119 7,934
12 months or longer 0 0
Total 3,119 7,934
Unrealized Losses    
Less than 12 months (9) (102)
12 months or longer 0 0
Total (9) (102)
Private mortgage backed securities [Member]    
Fair Value    
Less than 12 months 0 0
12 months or longer 6,864 36,848
Total 6,864 36,848
Unrealized Losses    
Less than 12 months 0 0
12 months or longer (153) (900)
Total (153) (900)
Private collateralized mortgage obligations [Member]    
Fair Value    
Less than 12 months 0 1,460
12 months or longer 26,129 38,417
Total 26,129 39,877
Unrealized Losses    
Less than 12 months 0 0
12 months or longer (488) (816)
Total (488) (816)
Obligations of state and political subdivisions [Member]    
Fair Value    
Less than 12 months 15,716 39,321
12 months or longer 2,916 0
Total 18,632 39,321
Unrealized Losses    
Less than 12 months (287) (895)
12 months or longer (98) 0
Total (385) (895)
Corporate and other debt securities [member]    
Fair Value    
Less than 12 months 12,873 33,008
12 months or longer 2,388 0
Total 15,261 33,008
Unrealized Losses    
Less than 12 months (164) (517)
12 months or longer (4) 0
Total (168) (517)
Private commercial mortgage backed securities [Member]    
Fair Value    
Less than 12 months 11,126 12,667
12 months or longer 1,965 7,139
Total 13,091 19,806
Unrealized Losses    
Less than 12 months (185) (306)
12 months or longer (10) (167)
Total $ (195) $ (473)
v3.7.0.1
LOANS - Additional Information (Details) - USD ($)
$ in Millions
Jun. 30, 2017
Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Deferred Costs, Noncurrent $ 10.6 $ 10.6
v3.7.0.1
LOANS - Information Relating to Loans (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES [1] $ 3,330,075 $ 2,879,536
Construction and land development [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 230,574 160,116
Commercial real estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 1,464,068 1,357,592
Residential real estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 991,144 836,787
Other loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 556 507
Commercial and financial [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 465,138 370,589
Consumer [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 178,595 153,945
Portfolio Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES [1] 2,722,866 2,425,850
Portfolio Loans [Member] | Construction and land development [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 181,334 137,480
Portfolio Loans [Member] | Commercial real estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 1,098,634 1,041,915
Portfolio Loans [Member] | Residential real estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 874,753 784,290
Portfolio Loans [Member] | Other loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 556 507
Portfolio Loans [Member] | Commercial and financial [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 393,213 308,731
Portfolio Loans [Member] | Consumer [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 174,376 152,927
PCI Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES [1] 13,132 12,996
PCI Loans [Member] | Construction and land development [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 113 114
PCI Loans [Member] | Commercial real estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 11,463 11,257
PCI Loans [Member] | Residential real estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 702 684
PCI Loans [Member] | Other loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 0 0
PCI Loans [Member] | Commercial and financial [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 854 941
PCI Loans [Member] | Consumer [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 0 0
PULs [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES [1] 594,077 440,690
PULs [Member] | Construction and land development [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 49,127 22,522
PULs [Member] | Commercial real estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 353,971 304,420
PULs [Member] | Residential real estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 115,689 51,813
PULs [Member] | Other loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 0 0
PULs [Member] | Commercial and financial [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES 71,071 60,917
PULs [Member] | Consumer [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
NET LOAN BALANCES $ 4,219 $ 1,018
[1] Net loan balances as of June 30, 2017 and December 31, 2016 include deferred costs of $10.6 million for each period presented, respectively.
v3.7.0.1
LOANS - Summarizes Changes in Total Contractually Required Principal and Interest Cash Payments (Details) - Purchased Credit Impaired Loan [Member] - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Schedule of Contractually Required Principal And Interest Cash Payments Changes [Line Items]        
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net $ 12,982 $ 16,531 $ 12,996 $ 12,109
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net 13,132 13,652 13,132 13,652
Accretable yield [Member]        
Schedule of Contractually Required Principal And Interest Cash Payments Changes [Line Items]        
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net 3,510 3,143 3,807 2,610
Additions 0 1,215 0 1,831
Deletions (10) 1,086 (10) 1,271
Accretion (451) (770) (816) (1,038)
Reclassifications from nonaccretable difference 216 0 284 0
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net 3,265 4,674 3,265 4,674
Recorded investment of acquired loans [Member]        
Schedule of Contractually Required Principal And Interest Cash Payments Changes [Line Items]        
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net 12,982 16,531 12,996 12,109
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net 13,132 13,652 13,132 13,652
Allowance for loan losses [Member]        
Schedule of Contractually Required Principal And Interest Cash Payments Changes [Line Items]        
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net 0 0 0 0
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net $ 0 $ 0 $ 0 $ 0
v3.7.0.1
LOANS - Contractual Aging of Recorded Investment in Past Due Loans (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual $ 16,979 $ 18,071
Current 3,311,120 2,857,695
Total Financing Receivables 3,330,075 2,879,536
Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 1,703 2,281
Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 79 1,489
Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 194 0
Portfolio Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 10,541 11,023
Current 2,711,683 2,412,629
Total Financing Receivables 2,722,866 2,425,850
Portfolio Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 563 1,707
Portfolio Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 79 491
Portfolio Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Purchased Unimpaired Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 2,677 2,763
Current 590,255 436,540
Total Financing Receivables 594,077 440,690
Purchased Unimpaired Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 951 574
Purchased Unimpaired Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 813
Purchased Unimpaired Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 194 0
Purchased Credit Impaired Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 3,761 4,285
Current 9,182 8,526
Total Financing Receivables 13,132 12,996
Purchased Credit Impaired Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 189 0
Purchased Credit Impaired Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 185
Purchased Credit Impaired Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Commercial and financial [Member] | Portfolio Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 0 49
Current 393,088 308,652
Total Financing Receivables 393,213 308,731
Commercial and financial [Member] | Portfolio Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 125 30
Commercial and financial [Member] | Portfolio Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Commercial and financial [Member] | Portfolio Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Commercial and financial [Member] | Purchased Unimpaired Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 347 197
Current 70,210 60,353
Total Financing Receivables 71,071 60,917
Commercial and financial [Member] | Purchased Unimpaired Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 514 39
Commercial and financial [Member] | Purchased Unimpaired Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 328
Commercial and financial [Member] | Purchased Unimpaired Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Commercial and financial [Member] | Purchased Credit Impaired Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 0 0
Current 854 941
Total Financing Receivables 854 941
Commercial and financial [Member] | Purchased Credit Impaired Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Commercial and financial [Member] | Purchased Credit Impaired Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Commercial and financial [Member] | Purchased Credit Impaired Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Consumer [Member] | Portfolio Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 133 170
Current 174,132 152,669
Total Financing Receivables 174,376 152,927
Consumer [Member] | Portfolio Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 97 29
Consumer [Member] | Portfolio Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 14 59
Consumer [Member] | Portfolio Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Consumer [Member] | Purchased Unimpaired Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 0 0
Current 4,219 981
Total Financing Receivables 4,219 1,018
Consumer [Member] | Purchased Unimpaired Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 37
Consumer [Member] | Purchased Unimpaired Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Consumer [Member] | Purchased Unimpaired Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Consumer [Member] | Purchased Credit Impaired Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 0 0
Current 0 0
Total Financing Receivables 0 0
Consumer [Member] | Purchased Credit Impaired Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Consumer [Member] | Purchased Credit Impaired Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Consumer [Member] | Purchased Credit Impaired Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Commercial real estate [Member] | Portfolio Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 1,209 1,784
Current 1,097,425 1,039,882
Total Financing Receivables 1,098,634 1,041,915
Commercial real estate [Member] | Portfolio Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 78
Commercial real estate [Member] | Portfolio Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 171
Commercial real estate [Member] | Portfolio Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Commercial real estate [Member] | Purchased Unimpaired Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 743 1,272
Current 352,791 302,318
Total Financing Receivables 353,971 304,420
Commercial real estate [Member] | Purchased Unimpaired Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 437 345
Commercial real estate [Member] | Purchased Unimpaired Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 485
Commercial real estate [Member] | Purchased Unimpaired Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Commercial real estate [Member] | Purchased Credit Impaired Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 3,761 4,285
Current 7,702 6,972
Total Financing Receivables 11,463 11,257
Commercial real estate [Member] | Purchased Credit Impaired Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Commercial real estate [Member] | Purchased Credit Impaired Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Commercial real estate [Member] | Purchased Credit Impaired Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Construction and land development [Member] | Portfolio Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 544 438
Current 180,517 137,042
Total Financing Receivables 181,334 137,480
Construction and land development [Member] | Portfolio Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 273 0
Construction and land development [Member] | Portfolio Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Construction and land development [Member] | Portfolio Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Construction and land development [Member] | Purchased Unimpaired Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 125 32
Current 49,002 22,490
Total Financing Receivables 49,127 22,522
Construction and land development [Member] | Purchased Unimpaired Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Construction and land development [Member] | Purchased Unimpaired Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Construction and land development [Member] | Purchased Unimpaired Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Construction and land development [Member] | Purchased Credit Impaired Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 0 0
Current 113 114
Total Financing Receivables 113 114
Construction and land development [Member] | Purchased Credit Impaired Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Construction and land development [Member] | Purchased Credit Impaired Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Construction and land development [Member] | Purchased Credit Impaired Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Residential real estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Financing Receivables 991,144 836,787
Residential real estate [Member] | Portfolio Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 8,655 8,582
Current 865,965 773,877
Total Financing Receivables 874,753 784,290
Residential real estate [Member] | Portfolio Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 68 1,570
Residential real estate [Member] | Portfolio Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 65 261
Residential real estate [Member] | Portfolio Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Residential real estate [Member] | Purchased Unimpaired Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 1,462 1,262
Current 114,033 50,398
Total Financing Receivables 115,689 51,813
Residential real estate [Member] | Purchased Unimpaired Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 153
Residential real estate [Member] | Purchased Unimpaired Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Residential real estate [Member] | Purchased Unimpaired Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 194 0
Residential real estate [Member] | Purchased Credit Impaired Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 0 0
Current 513 499
Total Financing Receivables 702 684
Residential real estate [Member] | Purchased Credit Impaired Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 189 0
Residential real estate [Member] | Purchased Credit Impaired Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 185
Residential real estate [Member] | Purchased Credit Impaired Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Other [Member] | Portfolio Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 0 0
Current 556 507
Total Financing Receivables 556 507
Other [Member] | Portfolio Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Other [Member] | Portfolio Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Other [Member] | Portfolio Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Other [Member] | Purchased Unimpaired Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 0 0
Current 0 0
Total Financing Receivables 0 0
Other [Member] | Purchased Unimpaired Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Other [Member] | Purchased Unimpaired Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Other [Member] | Purchased Unimpaired Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Other [Member] | Purchased Credit Impaired Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 0 0
Current 0 0
Total Financing Receivables 0 0
Other [Member] | Purchased Credit Impaired Loans [Member] | Accruing 30-59 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Other [Member] | Purchased Credit Impaired Loans [Member] | Accruing 60-89 Days Past Due    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due 0 0
Other [Member] | Purchased Credit Impaired Loans [Member] | Accruing Greater Than 90 Days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Financing Receivable, Recorded Investment, Past Due $ 0 $ 0
v3.7.0.1
LOANS - Risk Category, Class of Loans and Recorded Investment (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]    
Loans $ 3,330,075 $ 2,879,536
Construction & Land Development [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 230,574 160,116
Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 1,464,068 1,357,592
Residential Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 991,144 836,787
Commercial and Financial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 465,138 370,589
Consumer [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 179,151 154,452
Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 3,240,615 2,797,806
Pass [Member] | Construction & Land Development [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 216,965 148,563
Pass [Member] | Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 1,426,634 1,319,696
Pass [Member] | Residential Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 965,708 811,576
Pass [Member] | Commercial and Financial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 453,838 364,241
Pass [Member] | Consumer [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 177,470 153,730
Special mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 30,062 28,017
Special mention [Member] | Construction & Land Development [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 8,048 5,037
Special mention [Member] | Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 12,562 17,184
Special mention [Member] | Residential Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 1,705 1,780
Special mention [Member] | Commercial and Financial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 6,715 3,949
Special mention [Member] | Consumer [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 1,032 67
Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 25,418 17,931
Substandard [Member] | Construction & Land Development [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 4,631 5,497
Substandard [Member] | Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 13,364 7,438
Substandard [Member] | Residential Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 3,274 2,709
Substandard [Member] | Commercial and Financial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 3,981 2,153
Substandard [Member] | Consumer [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 168 134
Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 60 [1] 0
Doubtful [Member] | Construction & Land Development [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 0 [1] 0
Doubtful [Member] | Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 0 [1] 0
Doubtful [Member] | Residential Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 0 [1] 0
Doubtful [Member] | Commercial and Financial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 60 [1] 0
Doubtful [Member] | Consumer [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 0 [1] 0
Nonaccrual [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 16,979 18,071
Nonaccrual [Member] | Construction & Land Development [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 669 470
Nonaccrual [Member] | Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 5,713 7,341
Nonaccrual [Member] | Residential Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 10,117 9,844
Nonaccrual [Member] | Commercial and Financial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 347 246
Nonaccrual [Member] | Consumer [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 133 170
Pass-Troubled debt restructures [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 4,946 5,434
Pass-Troubled debt restructures [Member] | Construction & Land Development [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 37 44
Pass-Troubled debt restructures [Member] | Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 4,909 4,988
Pass-Troubled debt restructures [Member] | Residential Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 0 358
Pass-Troubled debt restructures [Member] | Commercial and Financial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 0 0
Pass-Troubled debt restructures [Member] | Consumer [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 0 44
Troubled debt restructures [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 11,995 12,277
Troubled debt restructures [Member] | Construction & Land Development [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 224 505
Troubled debt restructures [Member] | Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 886 945
Troubled debt restructures [Member] | Residential Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 10,340 10,520
Troubled debt restructures [Member] | Commercial and Financial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans 197 0
Troubled debt restructures [Member] | Consumer [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans $ 348 $ 307
[1] Comprised of a single loan that paid off in July 2017.
v3.7.0.1
IMPAIRED LOANS AND ALLOWANCE FOR LOAN LOSSES - Additional Information (Details) - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
Financing Receivable, Modifications [Line Items]      
Troubled Debt Restructuring Outstanding $ 16,900,000   $ 17,700,000
Loans and Leases Receivable, Impaired, Interest Income Recognized, Change in Present Value Attributable to Passage of Time 125,000 $ 95,000  
Nonaccrual loans and loans past due ninety days 16,979,000   18,071,000
Purchased Loans [Member]      
Financing Receivable, Modifications [Line Items]      
Nonaccrual loans and loans past due ninety days 6,400,000   7,000,000
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing 200,000   0
Nonaccrual [Member]      
Financing Receivable, Modifications [Line Items]      
Nonaccrual loans and loans past due ninety days 10,500,000   11,000,000
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing 0   0
Loans [Member] | Bank shares, Inc [Member]      
Financing Receivable, Modifications [Line Items]      
Assets, Fair Value Adjustment $ 15,500,000   $ 13,700,000
Fair value adjustment Percent 2.54%   3.11%
v3.7.0.1
IMPAIRED LOANS AND ALLOWANCE FOR LOAN LOSSES - Modified Loans (Details)
$ in Thousands
6 Months Ended
Jun. 30, 2017
USD ($)
Number
Jun. 30, 2016
USD ($)
Number
Financing Receivable, Modifications [Line Items]    
Number of Contracts | Number 2 6
Pre-Modification Outstanding Recorded Investment $ 67 $ 1,660
Post-Modification Outstanding Recorded Investment 61 1,489
Valuation Allowance Recorded $ 6 $ 171
Construction and Land Development [Member]    
Financing Receivable, Modifications [Line Items]    
Number of Contracts | Number 1  
Pre-Modification Outstanding Recorded Investment $ 52  
Post-Modification Outstanding Recorded Investment 46  
Valuation Allowance Recorded $ 6  
Residential Real Estate [Member]    
Financing Receivable, Modifications [Line Items]    
Number of Contracts | Number 1 6
Pre-Modification Outstanding Recorded Investment $ 15 $ 1,660
Post-Modification Outstanding Recorded Investment 15 1,489
Valuation Allowance Recorded $ 0 $ 171
v3.7.0.1
IMPAIRED LOANS AND ALLOWANCE FOR LOAN LOSSES - Company's Recorded Investments in Impaired Loans and the Related Valuation Allowances (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
Recorded Investment    
Total $ 30,386 $ 32,718
Unpaid Principal Balance    
Total 36,636 39,157
Related Valuation Allowance    
Total 1,911 2,454
Construction and Land Development [Member]    
Recorded Investment    
Impaired Loans with No Related Allowance Recorded 577 226
Impaired Loans with an Allowance Recorded 355 51
Total 932 277
Unpaid Principal Balance    
Impaired Loans with No Related Allowance Recorded 879 321
Impaired Loans with an Allowance Recorded 367 51
Total 1,246 372
Related Valuation Allowance    
Impaired Loans with No Related Allowance Recorded 0 0
Impaired Loans with an Allowance Recorded 145 0
Total 145 0
Commercial Real Estate [Member]    
Recorded Investment    
Impaired Loans with No Related Allowance Recorded 2,791 3,267
Impaired Loans with an Allowance Recorded 4,964 6,937
Total 7,755 10,204
Unpaid Principal Balance    
Impaired Loans with No Related Allowance Recorded 4,134 4,813
Impaired Loans with an Allowance Recorded 4,970 6,949
Total 9,104 11,762
Related Valuation Allowance    
Impaired Loans with No Related Allowance Recorded 0 0
Impaired Loans with an Allowance Recorded 244 395
Total 244 395
Residential Real Estate [Member]    
Recorded Investment    
Impaired Loans with No Related Allowance Recorded 10,099 9,706
Impaired Loans with an Allowance Recorded 10,360 12,332
Total 20,459 22,038
Unpaid Principal Balance    
Impaired Loans with No Related Allowance Recorded 14,607 14,136
Impaired Loans with an Allowance Recorded 10,566 12,681
Total 25,173 26,817
Related Valuation Allowance    
Impaired Loans with No Related Allowance Recorded 0 0
Impaired Loans with an Allowance Recorded 1,255 2,059
Total 1,255 2,059
Commercial And Financial [Member]    
Recorded Investment    
Impaired Loans with No Related Allowance Recorded 352 199
Impaired Loans with an Allowance Recorded 406 0
Total 758 199
Unpaid Principal Balance    
Impaired Loans with No Related Allowance Recorded 361 206
Impaired Loans with an Allowance Recorded 197 0
Total 558 206
Related Valuation Allowance    
Impaired Loans with No Related Allowance Recorded 0 0
Impaired Loans with an Allowance Recorded 209 0
Total 209 0
Consumer [Member]    
Recorded Investment    
Impaired Loans with No Related Allowance Recorded 127 0
Impaired Loans with an Allowance Recorded 355 0
Total 482 0
Unpaid Principal Balance    
Impaired Loans with No Related Allowance Recorded 200 0
Impaired Loans with an Allowance Recorded 355 0
Total 555 0
Related Valuation Allowance    
Impaired Loans with No Related Allowance Recorded 0 0
Impaired Loans with an Allowance Recorded 58 0
Total $ 58 $ 0
v3.7.0.1
IMPAIRED LOANS AND ALLOWANCE FOR LOAN LOSSES - Company's Average Recorded Investments in Impaired Loans and Related Interest Income (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Average Recorded Investment        
Total $ 31,078 $ 31,749 $ 31,682 $ 32,116
Interest Income Recognized        
Total 354 224 739 431
Commercial Real Estate [Member]        
Average Recorded Investment        
Impaired Loans with No Related Allowance Recorded 2,521 1,860 2,747 2,063
Impaired Loans with an Allowance Recorded 5,745 6,906 6,207 6,970
Total 8,266 8,766 8,954 9,033
Interest Income Recognized        
Impaired Loans with No Related Allowance Recorded 40 2 79 5
Impaired Loans with an Allowance Recorded 39 73 108 147
Total 79 75 187 152
Residential Real Estate [Member]        
Average Recorded Investment        
Impaired Loans with No Related Allowance Recorded 9,831 9,587 9,767 9,493
Impaired Loans with an Allowance Recorded 11,173 11,993 11,627 12,128
Total 21,004 21,580 21,394 21,621
Interest Income Recognized        
Impaired Loans with No Related Allowance Recorded 159 37 297 71
Impaired Loans with an Allowance Recorded 84 100 197 185
Total 243 137 494 256
Construction and Land Development [Member]        
Average Recorded Investment        
Impaired Loans with No Related Allowance Recorded 538 214 431 179
Impaired Loans with an Allowance Recorded 279 634 197 702
Total 817 848 628 881
Interest Income Recognized        
Impaired Loans with No Related Allowance Recorded 11 0 22 0
Impaired Loans with an Allowance Recorded 2 6 5 13
Total 13 6 27 13
Commercial And Financial [Member]        
Average Recorded Investment        
Impaired Loans with No Related Allowance Recorded 155 16 153 16
Impaired Loans with an Allowance Recorded 371 0 244 0
Total 526 16 397 16
Interest Income Recognized        
Impaired Loans with No Related Allowance Recorded 6 0 7 0
Impaired Loans with an Allowance Recorded 3 0 7 0
Total 9 0 14 0
Consumer Portfolio Segment [Member]        
Average Recorded Investment        
Impaired Loans with No Related Allowance Recorded 154 183 105 212
Impaired Loans with an Allowance Recorded 311 356 204 353
Total 465 539 309 565
Interest Income Recognized        
Impaired Loans with No Related Allowance Recorded 3 1 7 1
Impaired Loans with an Allowance Recorded 7 5 10 9
Total $ 10 $ 6 $ 17 $ 10
v3.7.0.1
IMPAIRED LOANS AND ALLOWANCE FOR LOAN LOSSES - Activity in Allowance for Loan Losses (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Allowance for Loan Losses:        
Beginning Balance $ 24,562 $ 19,724 $ 23,400 $ 19,128
Provision for Loan Losses 1,401 662 2,705 861
Charge-Offs (668) (122) (1,219) (494)
Recoveries 705 461 1,114 1,230
Net (Charge-Offs) Recoveries 37 339 (105) 736
Ending Balance 26,000 20,725 26,000 20,725
Construction and Land Development [Member]        
Allowance for Loan Losses:        
Beginning Balance 1,352 1,285 1,219 1,151
Provision for Loan Losses 128 (239) 192 (180)
Charge-Offs 0 0 0 0
Recoveries 94 114 163 189
Net (Charge-Offs) Recoveries 94 114 163 189
Ending Balance 1,574 1,160 1,574 1,160
Commercial Real Estate [Member]        
Allowance for Loan Losses:        
Beginning Balance 9,861 6,677 9,273 6,756
Provision for Loan Losses (167) 495 313 510
Charge-Offs (102) (3) (102) (176)
Recoveries 331 23 439 102
Net (Charge-Offs) Recoveries 229 20 337 (74)
Ending Balance 9,923 7,192 9,923 7,192
Residential Real Estate [Member]        
Allowance for Loan Losses:        
Beginning Balance 7,064 8,512 7,483 8,057
Provision for Loan Losses 324 (420) (100) (10)
Charge-Offs (64) (28) (187) (145)
Recoveries 99 235 227 397
Net (Charge-Offs) Recoveries 35 207 40 252
Ending Balance 7,423 8,299 7,423 8,299
Commercial And Financial [Member]        
Allowance for Loan Losses:        
Beginning Balance 4,635 1,991 3,636 2,042
Provision for Loan Losses 1,193 566 2,314 147
Charge-Offs (447) (38) (616) (93)
Recoveries 79 72 126 495
Net (Charge-Offs) Recoveries (368) 34 (490) 402
Ending Balance 5,460 2,591 5,460 2,591
Consumer [Member]        
Allowance for Loan Losses:        
Beginning Balance 1,650 1,259 1,789 1,122
Provision for Loan Losses (77) 260 (14) 394
Charge-Offs (55) (53) (314) (80)
Recoveries 102 17 159 47
Net (Charge-Offs) Recoveries 47 (36) (155) (33)
Ending Balance $ 1,620 $ 1,483 $ 1,620 $ 1,483
v3.7.0.1
IMPAIRED LOANS AND ALLOWANCE FOR LOAN LOSSES - Loan Portfolio and Related Allowance (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
Carrying Value    
Individually Evaluated for Impairment $ 30,386 $ 32,718
Collectively Evaluated for Impairment 3,286,557 2,833,822
Total 3,316,943 2,866,540
Associated Allowance    
Individually Evaluated for Impairment 1,911 2,454
Collectively Evaluated for Impairment 24,089 20,946
Total 26,000 23,400
PCI Loans [Member]    
Carrying Value    
Individually Evaluated for Impairment 13,132 12,996
Associated Allowance    
Individually Evaluated for Impairment 0 0
Construction and Land Development [Member]    
Carrying Value    
Individually Evaluated for Impairment 932 277
Collectively Evaluated for Impairment 229,529 159,839
Total 230,461 160,116
Associated Allowance    
Individually Evaluated for Impairment 145 0
Collectively Evaluated for Impairment 1,429 1,219
Total 1,574 1,219
Construction and Land Development [Member] | PCI Loans [Member]    
Carrying Value    
Individually Evaluated for Impairment 113 114
Associated Allowance    
Individually Evaluated for Impairment 0 0
Commercial Real Estate [Member]    
Carrying Value    
Individually Evaluated for Impairment 7,755 10,204
Collectively Evaluated for Impairment 1,444,850 1,335,832
Total 1,452,605 1,346,036
Associated Allowance    
Individually Evaluated for Impairment 244 395
Collectively Evaluated for Impairment 9,679 8,878
Total 9,923 9,273
Commercial Real Estate [Member] | PCI Loans [Member]    
Carrying Value    
Individually Evaluated for Impairment 11,463 11,257
Associated Allowance    
Individually Evaluated for Impairment 0 0
Residential Real Estate [Member]    
Carrying Value    
Individually Evaluated for Impairment 20,459 22,038
Collectively Evaluated for Impairment 969,983 814,250
Total 990,442 836,288
Associated Allowance    
Individually Evaluated for Impairment 1,255 2,059
Collectively Evaluated for Impairment 6,168 5,424
Total 7,423 7,483
Residential Real Estate [Member] | PCI Loans [Member]    
Carrying Value    
Individually Evaluated for Impairment 702 684
Associated Allowance    
Individually Evaluated for Impairment 0 0
Commercial And Financial [Member]    
Carrying Value    
Individually Evaluated for Impairment 758 199
Collectively Evaluated for Impairment 463,526 369,449
Total 464,284 369,648
Associated Allowance    
Individually Evaluated for Impairment 209 0
Collectively Evaluated for Impairment 5,251 3,636
Total 5,460 3,636
Commercial And Financial [Member] | PCI Loans [Member]    
Carrying Value    
Individually Evaluated for Impairment 854 941
Associated Allowance    
Individually Evaluated for Impairment 0 0
Consumer [Member]    
Carrying Value    
Individually Evaluated for Impairment 482 0
Collectively Evaluated for Impairment 178,669 154,452
Total 179,151 154,452
Associated Allowance    
Individually Evaluated for Impairment 58 0
Collectively Evaluated for Impairment 1,562 1,789
Total 1,620 1,789
Consumer [Member] | PCI Loans [Member]    
Carrying Value    
Individually Evaluated for Impairment 0 0
Associated Allowance    
Individually Evaluated for Impairment $ 0 $ 0
v3.7.0.1
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Schedule Of Securities Financing Transactions (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
Mortgage-backed securities of U.S. Government Sponsored Entities [Member]    
Securities Financing Transaction [Line Items]    
Securities Sold under Agreements to Repurchase, Fair Value of Collateral $ 167,558 $ 204,202
v3.7.0.1
NONINTEREST INCOME AND EXPENSES - Summary of Noninterest Income and Expense (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Noninterest income        
Service charges on deposits $ 2,435 $ 2,230 $ 4,857 $ 4,359
Trust income 917 838 1,797 1,644
Mortgage banking fees 1,272 1,364 2,824 2,363
Brokerage commissions and fees 351 470 728 1,101
Marine finance fees 326 279 460 420
Interchange income 2,671 2,370 5,165 4,587
Other deposit-based EFT fees 114 116 254 243
BOLI income 757 379 1,490 1,220
Other income 1,624 1,065 2,797 1,804
Noninterest Income 10,467 9,111 20,372 17,741
Securities gains, net 21 47 21 136
TOTAL 10,488 9,158 20,393 17,877
Noninterest expense        
Salaries and wages 18,375 13,884 33,744 27,283
Employee benefits 2,935 2,521 6,003 5,003
Outsourced data processing costs 3,456 2,803 6,725 7,242
Telephone/data lines 648 539 1,180 1,067
Occupancy 4,421 3,645 7,578 6,617
Furniture and equipment 1,679 1,283 3,070 2,281
Marketing 1,074 957 1,996 2,006
Legal and professional fees 3,276 2,656 5,408 5,013
FDIC assessments 650 643 1,220 1,187
Amortization of intangibles 839 593 1,558 1,039
Asset dispositions expense 136 160 189 250
Net loss (gain) on other real estate owned and repossessed assets 161 (201) (185) (252)
Early redemption cost for Federal Home Loan Bank borrowings 0 1,777 0 1,777
Other 3,975 3,548 7,885 6,636
TOTAL $ 41,625 $ 34,808 $ 76,371 $ 67,149
v3.7.0.1
EQUITY CAPITAL - Additional Information (Details) - USD ($)
$ in Thousands
1 Months Ended 6 Months Ended
Feb. 21, 2017
Jun. 30, 2017
Jun. 30, 2016
Class of Stock [Line Items]      
Proceeds from Issuance of Common Stock $ 55,600 $ 55,641 $ 0
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets   6.50%  
Stock Issued During Period, Shares, New Issues 2,702,500    
CapGen Capital Group III LP [Member]      
Class of Stock [Line Items]      
Sale of Stock, Number of Shares Issued in Transaction 6,210,000    
v3.7.0.1
FAIR VALUE - Additional Information (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Capitalization Rates Utilized To Determine Fair Value Of Underlying Collateral Averaged Percentage 7.80%          
Loans and Leases Receivable, Allowance $ 26,000 $ 24,562 $ 23,400 $ 20,725 $ 19,724 $ 19,128
Loans Receivable [Member]            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 100          
Other Real Estate Owned And Other Reductions 600          
Other Real Estate Owned [Member]            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 400          
Other Real Estate Revenue 2,900          
Loans Receivable, Fair Value Disclosure 10,700   4,100      
Loans and Leases Receivable, Allowance 600   $ 400      
Other Real Estate, Disposals 3,100          
Other Real Estate, Improvements $ 1,200          
v3.7.0.1
FAIR VALUE - Fair Value Measurements for Items Measured at Fair Value (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans held for sale $ 22,262 $ 15,332
Other real estate owned 8,497 9,949
Fair Value, Measurements, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available for sale securities [1] 1,016,744 950,503
Loans held for sale [2] 22,262 15,332
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available for sale securities [1] 100 100
Loans held for sale [2] 0 0
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available for sale securities [1] 1,016,644 950,403
Loans held for sale [2] 22,262 15,332
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available for sale securities [1] 0 0
Loans held for sale [2] 0 0
Fair Value, Measurements, Nonrecurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans [3] 10,710 4,120
Other real estate owned [4] 8,497 9,949
Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans [3] 0 0
Other real estate owned [4] 0 0
Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans [3] 10,304 3,170
Other real estate owned [4] 0 0
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Loans [3] 406 950
Other real estate owned [4] $ 8,497 $ 9,949
[1] See Note D for further detail of fair value of individual investment categories.
[2] Recurring fair value basis determined using observable market data.
[3] See Note F. Nonrecurring fair value adjustments to loans identified as impaired reflect full or partial write-downs that are based on the loan’s observable market price or current appraised value of the collateral in accordance with ASC 310.
[4] Fair value is measured on a nonrecurring basis in accordance with ASC 360.
v3.7.0.1
FAIR VALUE - Summary of Carrying Value and Fair Value of Company's Financial Instruments (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity $ 397,096 $ 372,498
Loans, net 3,304,075 2,856,136
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity [1] 0 0
Time deposits with other banks 0  
Loans, net 0 0
Deposit liabilities 0 0
Subordinated debt 0 0
Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity [1] 397,357 369,881
Time deposits with other banks 0  
Loans, net 0 0
Deposit liabilities 0 0
Subordinated debt 55,017 54,908
Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity [1] 0 0
Time deposits with other banks 16,386  
Loans, net 3,277,109 2,840,993
Deposit liabilities 3,973,456 3,523,322
Subordinated debt 0 0
Carrying Amount [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity [1] 397,096 372,498
Time deposits with other banks 16,426  
Loans, net 3,293,365 2,852,016
Deposit liabilities 3,975,458 3,523,245
Subordinated debt $ 70,381 $ 70,241
[1] See Note D for further detail of fair value of individual investment categories.
v3.7.0.1
FAIR VALUE - fair value of contractual balance and gains or losses (Details) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2017
Dec. 31, 2016
Aggregate fair value $ 22,262 $ 15,332
Contractual balance 21,640 14,904
Gains (losses) $ 622 $ 428
v3.7.0.1
BUSINESS COMBINATIONS - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Apr. 07, 2017
Mar. 11, 2016
Jun. 30, 2017
Jun. 30, 2017
May 18, 2017
May 04, 2017
Jun. 03, 2016
Business Acquisition [Line Items]              
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Premium Percentage             3.00%
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Loan Held For Sale             $ 314.0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable             $ 63.0
Business Acquisition Intangible Assets Expected Tax Deductible Amount     $ 13.0 $ 13.0      
Business Acquisition Intangible Assets Tax Deductible Period       15 years      
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount   $ 32.0          
Business Loan Premium             0.50%
Payments for Merger Related Costs     $ 4.3        
Floridian Financial Group [Member]              
Business Acquisition [Line Items]              
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets   417.0          
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Noncurrent Liabilities Deposits   337.0          
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Noncurrent Assets Loans   $ 266.0          
Business Acquisition, Equity Interest Issued or Issuable, Description       Under the terms of the definitive agreement, Floridian shareholders received, at their election, (i) the combination of $4.29 in cash and 0.5291 shares of Seacoast common stock, (ii) $12.25 in cash, or (iii) 0.8140 shares of Seacoast common stock, subject to a customary proration mechanism so that the aggregate consideration mix equaled 35% cash and 65% Seacoast shares (based on Seacoasts closing price of $15.47 per share on March 11, 2016).      
Business Acquisition, Percentage of Voting Interests Acquired     100.00% 100.00%      
Gulf Shore Banc shares Inc [Member]              
Business Acquisition [Line Items]              
Business Acquisition, Equity Interest Issued or Issuable, Description       Under the terms of the definitive agreement, GulfShore shareholders received, for each share of GulfShore common stock, the combination of $1.47 in cash and 0.4807 shares of Seacoast common stock (based on Seacoasts closing price of $23.94 per share on April 7, 2017).      
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount $ 37.0            
Gulf Shore Banc shares Inc [Member] | Common Stock [Member]              
Business Acquisition [Line Items]              
Business Acquisition, Percentage of Voting Interests Acquired     100.00% 100.00%      
Palm Beach Community Bank [Member]              
Business Acquisition [Line Items]              
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Noncurrent Liabilities Deposits           $ 281.0  
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Noncurrent Assets Loans           $ 290.0  
NorthStar Bank [Member]              
Business Acquisition [Line Items]              
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Noncurrent Liabilities Deposits         $ 168.0    
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Noncurrent Assets Loans         $ 137.0    
v3.7.0.1
BUSINESS COMBINATIONS - Purchase Price (Details)
Apr. 07, 2017
USD ($)
$ / shares
shares
Mar. 11, 2016
USD ($)
$ / shares
shares
Floridian Financial Group [Member]    
Business Acquisition [Line Items]    
Shares exchanged for cash   $ 26,699,000
Number of GulfShore Bancshares, Inc. common shares outstanding | shares   6,222,119
Per share exchange ratio   0.5289
Number of shares of common stock issued | shares   3,291,066
Multiplied by common stock price per share | $ / shares   $ 15.47
Value of common stock issued   $ 50,912,791,000
Total purchase price   $ 77,611,791
Gulf Shore Banc shares Inc [Member]    
Business Acquisition [Line Items]    
Shares exchanged for cash $ 8,033,999,000  
Number of GulfShore Bancshares, Inc. common shares outstanding | shares 5,464,308  
Per share exchange ratio 0.4807  
Number of shares of common stock issued | shares 2,626,693  
Multiplied by common stock price per share | $ / shares $ 23.94  
Value of common stock issued $ 62,883,030,000  
Total purchase price $ 70,917,029,000  
v3.7.0.1
BUSINESS COMBINATIONS - fair value of the assets purchased, including goodwill, and liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Apr. 07, 2017
Dec. 31, 2016
Jun. 03, 2016
Mar. 11, 2016
Assets:          
Loans, net       $ 314,000  
Goodwill $ 101,739   $ 64,649    
Liabilities:          
Deposits       63,000  
Bank shares, Inc [Member] | Measurement Period Adjustments [Member]          
Assets:          
Cash, interest bearing deposits and time deposits with other banks         $ 0
Investment securities         95
Loans, net         (2,112)
Fixed assets         (628)
Core deposit intangibles         0
Goodwill         1,647
Other assets         998
Total assets acquired         0
Liabilities:          
Deposits         0
Other liabilities         0
Total liabilities assumed         0
Bank shares, Inc [Member] | Scenario, Previously Reported [Member]          
Assets:          
Cash, interest bearing deposits and time deposits with other banks         28,243
Investment securities         66,912
Loans, net         268,249
Fixed assets         7,801
Core deposit intangibles         3,375
Goodwill         29,985
Other assets         12,879
Total assets acquired         417,444
Liabilities:          
Deposits         337,341
Other liabilities         2,492
Total liabilities assumed         339,833
Bank shares, Inc [Member] | Restatement Adjustment [Member]          
Assets:          
Cash, interest bearing deposits and time deposits with other banks         28,243
Investment securities         67,007
Loans, net         266,137
Fixed assets         7,173
Core deposit intangibles         3,375
Goodwill         31,632
Other assets         13,877
Total assets acquired         417,444
Liabilities:          
Deposits         337,341
Other liabilities         2,492
Total liabilities assumed         $ 339,833
BMO Harris Bank [Member] | Measurement Period Adjustments [Member]          
Assets:          
Cash, interest bearing deposits and time deposits with other banks       0  
Loans, net       0  
Fixed assets       0  
Core deposit intangibles       (135)  
Goodwill       163  
Other assets       (28)  
Total assets acquired       0  
Liabilities:          
Deposits       0  
Other liabilities       0  
Total liabilities assumed       0  
BMO Harris Bank [Member] | Scenario, Previously Reported [Member]          
Assets:          
Cash, interest bearing deposits and time deposits with other banks       234,094  
Loans, net       62,671  
Fixed assets       3,715  
Core deposit intangibles       5,223  
Goodwill       7,645  
Other assets       952  
Total assets acquired       314,300  
Liabilities:          
Deposits       314,248  
Other liabilities       52  
Total liabilities assumed       314,300  
BMO Harris Bank [Member] | Restatement Adjustment [Member]          
Assets:          
Cash, interest bearing deposits and time deposits with other banks       234,094  
Loans, net       62,671  
Fixed assets       3,715  
Core deposit intangibles       5,088  
Goodwill       7,808  
Other assets       924  
Total assets acquired       314,300  
Liabilities:          
Deposits       314,248  
Other liabilities       52  
Total liabilities assumed       $ 314,300  
Gulf Shore Banc shares Inc [Member] | Scenario, Previously Reported [Member]          
Assets:          
Cash, interest bearing deposits and time deposits with other banks   $ 55,540      
Investment securities   316      
Loans, net   250,884      
Fixed assets   1,307      
Other real estate owned   13      
Core deposit intangibles   3,927      
Goodwill   37,090      
Other assets   8,572      
Total assets acquired   357,649      
Liabilities:          
Deposits   285,350      
Other liabilities   1,382      
Total liabilities assumed   $ 286,732      
v3.7.0.1
BUSINESS COMBINATIONS - fair value of acquired loans (Details) - USD ($)
$ in Thousands
Apr. 07, 2017
Jun. 03, 2016
Mar. 11, 2016
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net     $ 280,022
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value     266,137
Commercial Real Estate [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net     172,531
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value     167,105
Commercial Loan [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net     39,070
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value     37,804
Single Family Residential Real Estate [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net     38,304
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value     37,367
Construction Development Land [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net     20,546
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value     18,108
Consumer And Other Loans [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net     3,385
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value     3,110
Purchased Credit Impaired [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net     6,186
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value     $ 2,643
BMO Harris Bank [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net   $ 64,043  
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value   62,671  
BMO Harris Bank [Member] | Commercial Real Estate [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net   31,564  
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value   31,200  
BMO Harris Bank [Member] | Commercial Loan [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net   32,479  
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value   31,471  
BMO Harris Bank [Member] | Purchased Credit Impaired [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net   0  
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value   $ 0  
Gulf Shore Banc shares Inc [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net $ 256,876    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value 250,884    
Gulf Shore Banc shares Inc [Member] | Commercial Real Estate [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net 106,729    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value 103,908    
Gulf Shore Banc shares Inc [Member] | Commercial Loan [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net 32,137    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value 32,252    
Gulf Shore Banc shares Inc [Member] | Single Family Residential Real Estate [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net 101,281    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value 99,598    
Gulf Shore Banc shares Inc [Member] | Construction Development Land [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net 13,175    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value 11,653    
Gulf Shore Banc shares Inc [Member] | Consumer And Other Loans [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net 3,554    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value 3,473    
Gulf Shore Banc shares Inc [Member] | Purchased Credit Impaired [Member]      
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net 0    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value $ 0    
v3.7.0.1
BUSINESS COMBINATIONS - purchased credit impaired loans (Details)
$ in Thousands
Mar. 11, 2016
USD ($)
Total purchased credit-impaired loan acquired $ 266,137
Floridian Financial Group [Member]  
Contractually required principal and interest 8,031
Non-accretable difference (4,820)
Cash flows expected to be collected 3,211
Accretable yield (568)
Total purchased credit-impaired loan acquired $ 2,643
v3.7.0.1
BUSINESS COMBINATIONS - Pro-forma information (Details) - Gulf Shore Banc shares Inc [Member] - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Business Acquisition [Line Items]      
Net interest income $ 36,720 $ 84,935 $ 69,201
Net income $ 5,877 $ 16,384 $ 10,566
EPS - basic (in dollars per share) $ 0.15 $ 0.39 $ 0.27
EPS - diluted (in dollars per share) $ 0.14 $ 0.39 $ 0.27