FB FINANCIAL CORP, 10-Q filed on 8/9/2018
Quarterly Report
v3.10.0.1
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2018
Aug. 03, 2018
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q2  
Trading Symbol FBK  
Entity Registrant Name FB Financial Corp  
Entity Central Index Key 0001649749  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   30,685,209
v3.10.0.1
Consolidated balance sheets - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
ASSETS    
Cash and due from banks $ 67,863 $ 29,831
Federal funds sold 19,859 66,127
Interest bearing deposits in financial institutions 16,695 23,793
Cash and cash equivalents 104,417 119,751
Investments:    
Available-for-sale debt securities, at fair value 608,360 536,270
Equity securities, at fair value 3,075 7,722
Federal Home Loan Bank stock, at cost 12,641 11,412
Loans held for sale, at fair value 374,916 526,185
Loans 3,415,575 3,166,911
Less: allowance for loan losses 26,347 24,041
Net loans 3,389,228 3,142,870
Premises and equipment, net 85,936 81,577
Other real estate owned, net 14,639 16,442
Interest receivable 12,729 13,069
Mortgage servicing rights, at fair value 109,449 76,107
Goodwill 137,190 137,190
Core deposit and other intangibles, net 13,203 14,902
Other assets 57,466 44,216
Total assets 4,923,249 4,727,713
Demand deposits    
Noninterest-bearing 970,851 888,200
Interest-bearing 2,027,776 1,909,546
Savings deposits 181,127 178,320
Customer time deposits 664,255 602,628
Brokered and internet time deposits 65,854 85,701
Total time deposits 730,109 688,329
Total deposits 3,909,863 3,664,395
Securities sold under agreements to repurchase 15,996 14,293
Short-term borrowings 187,522 190,000
Long-term debt 139,375 143,302
Accrued expenses and other liabilities 39,534 118,994
Total liabilities 4,292,290 4,130,984
Shareholders' equity:    
Common stock, $1 par value per share; 75,000,000 shares authorized; 30,683,353 and 30,535,517 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively 30,683 30,536
Additional paid-in capital 420,382 418,596
Retained earnings 187,250 147,449
Accumulated other comprehensive (loss) income, net (7,356) 148
Total shareholders' equity 630,959 596,729
Total liabilities and shareholders' equity $ 4,923,249 $ 4,727,713
v3.10.0.1
Consolidated balance sheets (Parenthetical) - $ / shares
Jun. 30, 2018
Dec. 31, 2017
Statement Of Financial Position [Abstract]    
Common stock, par value $ 1 $ 1
Common stock, shares authorized 75,000,000 75,000,000
Common stock, shares issued 30,683,353 30,535,517
Common stock, shares outstanding 30,683,353 30,535,517
v3.10.0.1
Consolidated statements of income (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Interest income:        
Interest and fees on loans $ 54,529 $ 29,350 $ 105,222 $ 58,356
Interest on securities        
Taxable 3,134 2,589 5,986 5,156
Tax-exempt 981 1,068 1,906 2,108
Other 399 271 777 547
Total interest income 59,043 33,278 113,891 66,167
Deposits        
Demand and savings accounts 3,951 1,703 7,266 3,234
Time deposits 1,947 604 3,703 1,187
Short-term borrowings 694 112 1,116 210
Long-term debt 934 432 1,860 858
Total interest expense 7,526 2,851 13,945 5,489
Net interest income 51,517 30,427 99,946 60,678
Provision for loan losses 1,063 (865) 1,380 (1,122)
Net interest income after provision for loan losses 50,454 31,292 98,566 61,800
Noninterest income:        
Mortgage banking income 28,544 30,239 55,015 55,319
(Loss) gain from securities, net (42) 29 (89) 30
(Loss) gain from other assets (155) 39 (87) 39
Other income 1,500 543 2,805 1,174
Total noninterest income 35,763 35,657 69,038 66,744
Noninterest expenses:        
Salaries, commissions and employee benefits 34,508 30,783 68,657 59,789
Occupancy and equipment expense 3,744 3,307 7,349 6,416
Legal and professional fees 1,965 1,033 4,008 2,461
Data processing 2,138 1,460 4,173 2,961
Merger and conversion   767 1,193 1,254
Amortization of core deposit and other intangibles 802 123 1,655 515
Loss on sale of mortgage servicing rights   249   249
Regulatory fees and deposit insurance assessments 730 494 1,292 929
Software license and maintenance fees 390 364 857 821
Advertising 3,408 3,343 6,690 6,275
Other expense 8,673 7,213 16,635 13,883
Total noninterest expense 56,358 49,136 112,509 95,553
Income before income taxes 29,859 17,813 55,095 32,991
Income tax expense (Note 7) 7,794 6,574 13,276 11,999
Net income $ 22,065 $ 11,239 $ 41,819 $ 20,992
Earnings per common share:        
Basic $ 0.72 $ 0.44 $ 1.36 $ 0.84
Fully diluted 0.70 $ 0.43 1.33 $ 0.82
Dividends declared per common share $ 0.06   $ 0.06  
Service Charges on Deposit Accounts        
Noninterest income:        
Noninterest income: $ 2,132 $ 1,796 $ 4,229 $ 3,562
ATM and Interchange Fees        
Noninterest income:        
Noninterest income: 2,581 2,085 4,942 4,132
Investment Services and Trust Income        
Noninterest income:        
Noninterest income: 1,180 903 2,386 1,717
Gain (Loss) on Sales or Write-Downs of Other Real Estate Owned        
Noninterest income:        
Noninterest income: $ 23 $ 23 $ (163) $ 771
v3.10.0.1
Consolidated statements of comprehensive income (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]        
Net income $ 22,065 $ 11,239 $ 41,819 $ 20,992
Other comprehensive (loss) income, net of tax:        
Net change in unrealized (loss) gain in available-for-sale securities, net of taxes of ($780), $1,053, ($3,319) and $1,408 (2,026) 1,631 (9,096) 2,180
Reclassification adjustment for (gain) loss on securities included in net income, net of taxes of $0, $11, ($2) and $12   (18) 7 (18)
Net change in unrealized gain in hedging activities, net of taxes of $69, $0, $518 and $0 196   1,469  
Reclassification adjustment for (gain) loss on hedging activities, net of taxes of $6, $0, $2 and $0 (25)   7  
Total other comprehensive (loss) income, net of tax (1,855) 1,613 (7,613) 2,162
Comprehensive income $ 20,210 $ 12,852 $ 34,206 $ 23,154
v3.10.0.1
Consolidated statements of comprehensive income (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]        
Net change in unrealized (loss) gain in available-for-sale, tax $ (780) $ 1,053 $ (3,319) $ 1,408
Reclassification adjustment for (gain) loss on securities, tax 0 11 (2) 12
Net change in unrealized gain in hedging activities, tax 69 0 518 0
Reclassification adjustment for (gain) loss on hedging activities, tax $ 6 $ 0 $ 2 $ 0
v3.10.0.1
Consolidated statements of changes in shareholders' equity (Unaudited) - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss), Net
Balance at Dec. 31, 2016 $ 330,498 $ 24,108 $ 213,480 $ 93,784 $ (874)
Initial fair value election on mortgage servicing rights, net of taxes of $396 (See Note 1) 615     615  
Net income 20,992     20,992  
Other comprehensive income (loss), net of taxes 2,162       2,162
Common stock issued, net of offering costs 152,721 4,807 147,914    
Stock-based compensation expense 3,154 6 3,148    
Restricted stock units vested and distributed, net of shares withheld for taxes (625) 47 (672)    
Balance at Jun. 30, 2017 509,517 28,968 363,870 115,391 1,288
Balance at Dec. 31, 2017 596,729 30,536 418,596 147,449 148
Initial adoption of ASU 2016-01 (See Note 1)       (109) 109
Net income 41,819     41,819  
Other comprehensive income (loss), net of taxes (7,613)       (7,613)
Stock-based compensation expense 3,819 6 3,813    
Restricted stock units vested and distributed, net of shares withheld for taxes (2,555) 124 (2,679)    
Shares issued under employee stock purchase program 669 17 652    
Dividends declared ($0.06 per share) (1,909)     (1,909)  
Balance at Jun. 30, 2018 $ 630,959 $ 30,683 $ 420,382 $ 187,250 $ (7,356)
v3.10.0.1
Consolidated statements of changes in shareholders' equity (Unaudited) (Parenthetical)
$ in Thousands
6 Months Ended
Jun. 30, 2017
USD ($)
Statement Of Stockholders Equity [Abstract]  
Fair Value Election on Mortgage Servicing Rights Retained Earnings Adjustment, Tax $ 396
v3.10.0.1
Consolidated Statements of Cash Flows (Unaudited)
$ in Thousands
6 Months Ended
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Cash flows from operating activities:    
Net income $ 41,819 $ 20,992
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation expense 2,238 1,993
Amortization of core deposits and other intangibles 1,655 515
Capitalization of mortgage servicing rights (29,814) (29,659)
Net change in fair value of mortgage servicing rights (3,528) 2,341
Stock-based compensation expense 3,819 3,154
Provision for loan losses 1,380 (1,122)
Provision for mortgage loan repurchases 392 384
Accretion of discounts on purchased loans (3,615) (848)
Accretion of discounts and amortization of premiums on securities, net 1,378 1,290
Loss (gain) from securities, net 89 (30)
Originations of loans held for sale (3,287,255) (2,944,481)
Repurchases of loans held for sale (3,222)  
Proceeds from sale of loans held for sale 3,441,316 3,071,027
Gain on sale and change in fair value of loans held for sale (48,109) (52,165)
Gain on sale of mortgage servicing rights   (17)
Net loss (gain) or write-downs of other real estate owned 163 (771)
Loss (gain) on other assets 87 (39)
Provision for deferred income taxes 11,081 7,952
Changes in:    
Other assets and interest receivable (8,435) 6,303
Accrued expenses and other liabilities (42,630) (18,785)
Net cash provided by operating activities 78,809 68,034
Activity in available-for-sale securities:    
Sales 221 12,158
Maturities, prepayments and calls 34,508 41,851
Purchases (121,108) (22,885)
Net increase in loans (239,188) (114,201)
Purchases of FHLB stock (1,229)  
Proceeds from sale of mortgage servicing rights   11,952
Purchases of premises and equipment (6,597) (1,734)
Proceeds from the sale of premises and equipment   39
Proceeds from the sale of other real estate owned 2,209 2,930
Net cash used in investing activities (331,184) (69,890)
Cash flows from financing activities:    
Net increase in demand and savings deposits 203,688 50,461
Net increase in time deposits 41,780 5,570
Net increase (decrease) in securities sold under agreements to repurchase 1,703 (5,218)
Decrease in short-term borrowings (2,478) (150,000)
Decrease in long-term debt (3,927) (1,102)
Share based compensation withholding obligation (2,555) (625)
Net proceeds from sale of common stock 669 152,721
Dividends paid (1,839)  
Net cash provided by financing activities 237,041 51,807
Net change in cash and cash equivalents (15,334) 49,951
Cash and cash equivalents at beginning of the period 119,751 136,327
Cash and cash equivalents at end of the period 104,417 186,278
Supplemental cash flow information:    
Interest paid 13,269 5,608
Taxes paid 19,112 18,122
Supplemental noncash disclosures:    
Transfers from loans to other real estate owned 1,014 1,162
Transfers from other real estate owned to loans 445 36
Transfers from loans held for sale to loans 5,504 5,645
Derecognition of rebooked GNMA delinquent loans (See Note 1) 43,035  
Dividends declared not paid on restricted stock units (70)  
Adoption of ASU 2016-01 (See Note 1) $ (109)  
Fair value election of mortgage servicing rights   $ 1,011
v3.10.0.1
Basis of Presentation
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Basis of presentation

Note (1)—Basis of presentation:

FB Financial Corporation (the “Company”) is a bank holding company, headquartered in Nashville, Tennessee. The Company operates through its wholly owned bank subsidiary, FirstBank (the “Bank”), with 56 full-service bank branches across Tennessee, North Alabama and North Georgia, and a national mortgage business with office locations across the Southeast.

The consolidated financial statements, including the notes thereto of the Company, have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) interim reporting requirements, and therefore do not include all information and notes included in the annual consolidated financial statements in conformity with GAAP. These interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K.

The unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year.

The accompanying consolidated financial statements have been prepared in conformity with GAAP and general banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended. Actual results could differ significantly from those estimates.

Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or shareholders’ equity.

Effective July 31, 2017, the Bank completed its previously announced acquisitions of Clayton Bank and Trust and American City Bank headquartered in Knoxville, Tennessee and Tullahoma, Tennessee, respectively.  See Note 2, “Mergers and acquisitions” in these Notes to the consolidated unaudited financial statements for further details regarding acquisitions.

Prior to May 31, 2018, the Company was considered a “controlled company” and was controlled by the Company’s Executive Chairman and former majority shareholder, James W. Ayers. During the second quarter of 2018, the Company completed a secondary offering of 3,680,000 shares of common stock pursuant to the Company’s effective registration statement on Form S-3 whereby James W. Ayers was the seller. As a result of this transaction, the Company ceased to qualify as a “controlled company” as the selling shareholder’s ownership was reduced to approximately 44% of the voting power of the Company’s issued and outstanding shares of common stock. The Company continues to qualify as an emerging growth company as defined by the “Jumpstart Our Business Startups Art” (“JOBS Act”).

Subsequent events

The Company has evaluated, for consideration of recognition or disclosure, subsequent events that occurred through the date of issuance of these financial statements. The Company has determined that there were no other subsequent events other than described below that occurred after June 30, 2018, but prior to the issuance of these financial statements that would have a material impact on the Company’s consolidated financial statements.

On July 19, 2018, the Company declared a regular quarterly dividend of $0.06 per share to be paid on August 15, 2018 to shareholders of record as of July 31, 2018, totaling approximately $1,909.

On August 7, 2018, the Federal Home Loan Bank of Cincinnati increased the capacity on the Company’s line of credit from $300,000 to $800,000.

Earnings per share

Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS includes the dilutive effect of additional potential common shares issuable under the restricted stock units granted but not yet vested and distributable. Diluted EPS is computed by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method.

Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common shareholders in undistributed earnings for purposes of computing EPS. Companies that have such participating securities, including FB Financial, are required to calculate basic and diluted EPS using the two-class method. Certain restricted stock awards granted by the Company include non-forfeitable dividend equivalents and are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities.

The following is a summary of the basic and diluted earnings per common share calculation for each of the periods presented:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Basic earnings per share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

22,065

 

 

$

11,239

 

 

$

41,819

 

 

$

20,992

 

Dividends paid on and undistributed earnings allocated to

     participating securities

 

 

(117

)

 

 

 

 

 

(223

)

 

 

 

Earnings attributable to common shareholders

 

$

21,948

 

 

$

11,239

 

 

$

41,596

 

 

$

20,992

 

Weighted-average basic shares outstanding

 

 

30,678,732

 

 

 

25,741,968

 

 

 

30,646,189

 

 

 

24,944,633

 

Basic earnings per share

 

$

0.72

 

 

$

0.44

 

 

$

1.36

 

 

$

0.84

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings attributable to common shareholders

 

$

21,948

 

 

$

11,239

 

 

$

41,596

 

 

$

20,992

 

Weighted-average basic shares outstanding

 

 

30,678,732

 

 

 

25,741,968

 

 

 

30,646,189

 

 

 

24,944,633

 

Weighted-average diluted shares contingently issuable

 

 

615,312

 

 

 

559,490

 

 

 

629,657

 

 

 

505,786

 

Weighted-average diluted shares outstanding

 

 

31,294,044

 

 

 

26,301,458

 

 

 

31,275,846

 

 

 

25,450,419

 

Diluted earnings per share

 

$

0.70

 

 

$

0.43

 

 

$

1.33

 

 

$

0.82

 

Rebooked GNMA loans included in loans held for sale

Government National Mortgage Association (“GNMA”) optional repurchase programs allow financial institutions to buy back individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which the institution provides servicing and was the original transferor.  At the servicer’s option and without GNMA’s prior authorization, the servicer may repurchase such a delinquent loan for an amount equal to 100 percent of the remaining principal balance of the loan.  Under FASB ASC Topic 860, “Transfers and Servicing,” this buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional.  When the Company is deemed to have regained effective control over these loans under the unconditional buy-back option, the loans can no longer be reported as sold and must be brought back onto the balance sheet as loans held for sale, regardless of whether the Company intends to exercise the buy-back option if the buyback option provides the transferor a more-than-trivial benefit. At June 30, 2018, there were $52,212 of delinquent GNMA loans that had previously been sold; however, the Company determined there was not a “more-than-trivial benefit” based on an analysis of interest rates and an assessment of potential reputational risk associated with these loans. As such, the Company did not rebook the GNMA loans as of June 30, 2018. At December 31, 2017, rebooked GNMA loans held for sale amounted to $43,035 with an offsetting liability included in accrued expenses and other liabilities in the same amount. The fair value option election does not apply to the GNMA optional repurchase loans which do not meet the requirements under FASB ASC Topic 825 to be accounted for under the fair value option.

Recently adopted accounting principles:

Except as set forth below, the Company did not adopt any new accounting policies that were not disclosed in the Company’s 2017 audited consolidated financial statements included on Form 10-K.

On January 1, 2018, the Company adopted the following newly issued accounting standards:

In May 2014, the FASB issued an update to Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”. The Company adopted this guidance on January 1, 2018 and all subsequent amendments to the ASU (collectively, “ASC 606”) which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO.  The majority of the Company’s revenues come from interest income and other sources, including loans, leases, securities and derivatives that are outside the scope of ASC 606.  The Company’s services that fall within the scope of ASC 606 are presented within Noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer.  Services within the scope of ASC 606 include deposit service charges on deposits, interchange income, investment services and trust income, and the sale of OREO, all within the Banking Segment.  The Company has evaluated the effect of this updated on these fee-based income streams and concluded that adoption did not result in a change to the accounting for any of the in-scope revenue streams; as such, no cumulative effect adjustment was recorded.

The following is a summary of the implementation considerations for the revenue streams that fall within the scope of Topic 606:

 

Service charges on deposits, investment services and trust income, and interchange fees — Fees from these services are either transaction based, for which the performance obligations are satisfied when the individual transaction is processed, or set periodic service charges, for which the performance obligations are satisfied over the period the service is provided. Transaction based fees are recognized at the time the transaction is processed, and periodic service charges are recognized over the service period. The adoption of Topic 606 had no impact on the Company's revenue recognition practice for these services.

 

Gains on sales of other real estate — ASU 2014-09 creates Topic 610-20, under which a gain on sale should be recognized when a contract for sale exists and control of the asset has been transferred to the buyer. Topic 606 list several criteria which must exist to conclude that a contract for sale exists, including a determination that the institution will collect substantially all of the consideration to which it is entitled. This presents a key difference between the current and new guidance related to the recognition of the gain when the institution finances the sale of the property. Rather than basing recognition on the amount of the buyer's initial investment, which was the primary consideration under prior guidance, the analysis is now based on various factors including not only the loan to value, but also the credit quality of the borrower, the structure of the loan, and any other factors that may affect collectability. While these differences may affect the decision to recognize or defer gains on sales of other real estate in circumstances where the Company has financed the sale, these amounts have not been material to its financial statements.

In January 2016, the FASB released ASU 2016-01, “Recognition and Measurement of Financial Assets and Liabilities.” The main provisions of the update are to eliminate the available for sale classification of accounting for equity securities and adjust the fair value disclosures for financial instruments carried at amortized cost such that the disclosed fair values represent an exit price as opposed to an entry price. The provisions of this update will require that equity securities be carried at fair market value on the balance sheet and any periodic changes in value will be adjustments to the income statement. A practical expedient is provided for equity securities without a readily determinable fair value such that these securities can be carried at cost less any impairment. Results for reporting periods beginning after January 1, 2018 are presented under this method while prior period disclosures are presented under legacy GAAP. On January 1, 2018, the Company recorded a net loss in beginning retained earnings of $109 in connection with this transition.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments (Topic 230).” ASU 2016-15 provides guidance related to certain cash flow issues in order to reduce the current and potential future diversity in practice. This adoption did not have an impact on our financial statements.

In May 2017, the FASB issued ASU 2017-09, “Stock Compensation - Scope of Modification Accounting (Topic 718): Scope of Modification Accounting.” The amendments in this ASU provide guidance on when changes to the terms or conditions of a share-based payment award are to be accounted for as modifications. Under ASU 2017-09, entities are not required to apply modification accounting to a share-based payment award when the award’s fair value, vesting conditions, and classification as an entity or a liability instrument remain the same after the change. ASU 2017-09 is effective for all entities beginning after December 15, 2017 including interim periods within the fiscal year. The adoption of this update on January 1, 2018 did not have a significant impact on the Company’s consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” The amendments in this ASU make more financial and non-financial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. There was no impact to the Company’s financial statements or disclosures as a result of this early adoption as of January 1, 2018.

Newly issued not yet effective accounting standards:

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The update will require lessees to recognize right-of-use assets and lease liabilities for all leases not considered short term leases. The provisions of the update also include (a) defining direct costs to only include those incremental costs that would not have been incurred if the lease had not been entered into, (b) circumstances under which the transfer contract in a sale-leaseback transaction should be accounted for as the sale of an asset by the seller-lessee and the purchase of an asset by the buyer-lessor, and (c) additional disclosure requirements. The provisions of this update become effective for interim and annual periods beginning after December 15, 2018. Management is currently evaluating the potential impact of this update.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as, the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will become effective for interim and annual periods beginning after December 15, 2019. Management is currently evaluating the potential impact of this update.

In March 2017, the FASB issued ASU 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount, which continue to be amortized to maturity. Public business entities must prospectively apply the amendments in this ASU to annual periods beginning after December 15, 2018, including interim periods. The adoption of this update will not have an impact on the Company’s consolidated financial statements.

v3.10.0.1
Mergers and acquisitions
6 Months Ended
Jun. 30, 2018
Business Combinations [Abstract]  
Mergers and acquisitions

Note (2)—Mergers and acquisitions:

Clayton Bank and Trust and American City Bank

On July 31, 2017, the Bank completed its merger with Clayton Bank and Trust (“CBT”) and American City Bank (“ACB” and together with CBT, the “Clayton Banks”), pursuant to the Stock Purchase Agreement with Clayton HC, Inc., a Tennessee corporation (“Seller”), and James L. Clayton, the majority shareholder of Seller, dated February 8, 2017, as amended on May 26, 2017, with a purchase price of approximately $236,484.  The Company issued 1,521,200 shares of common stock and paid cash of $184,200 to purchase all of the outstanding shares of the Clayton Banks.  At closing, the Clayton Banks merged with and into FirstBank, with FirstBank continuing as the surviving banking entity.

Prior to the merger, the Clayton Banks operated 18 banking locations across Tennessee. The merger with the Clayton Banks has allowed the Company to further its strategic initiatives by expanding its geographic footprint in Knoxville and other Tennessee markets and accelerating the growth of the Company’s Banking segment.

Goodwill of $90,323 recorded in connection with the transaction resulted primarily from anticipated synergies arising from the combination of certain operational areas of the Clayton Banks and the Company as well as the purchase premium inherent to buying a complete and successful banking operation. Goodwill is included in the Banking segment as substantially all of the operations resulting from the Clayton Banks merger is included in the Banking segment.

In connection with the transaction, the Company incurred $0 and $1,193 in merger and conversion expenses during the three and six months ended June 30, 2018 compared with $767 and $1,254 for the same periods in 2017.

For income tax purposes, the merger with the Clayton Banks was treated as an asset purchase. As an asset purchase for income tax purposes, the carrying value of assets and liabilities for the Clayton Banks are the same for both financial reporting and income tax purposes; therefore, no deferred taxes were recorded at the date of acquisition. Additionally, this treatment allows for the deductibility of the goodwill and core deposit intangible for income tax purposes over 15 years.

The Company accounted for the Clayton Banks transaction under the acquisition method under ASC Topic 805. Accordingly, the fair value of the assets acquired and liabilities assumed along with the resulting goodwill was recorded as of the date of the merger. The Company’s operating results for the three and six months ended June 30, 2018 include the operating results of the acquired assets and assumed liabilities of the Clayton Banks.

As of December 31, 2017, the Company finalized its valuation of all assets acquired and liabilities assumed, resulting in no material changes to preliminary purchase accounting adjustments. The following tables present the final estimated fair value of net assets acquired as of the July 31, 2017 acquisition date and the consideration paid and an allocation of the purchase price to net assets acquired:

 

 

 

As of July 31, 2017

 

 

 

As Recorded by FB Financial Corporation(1)

 

Assets

 

 

 

 

Cash and cash equivalents

 

$

49,059

 

Investment securities

 

 

59,493

 

FHLB stock

 

 

3,409

 

Loans

 

 

1,059,728

 

Allowance for loan losses

 

 

 

Premises and equipment

 

 

18,866

 

Other real estate owned

 

 

6,888

 

Intangibles, net

 

 

12,334

 

Other assets

 

 

5,978

 

Total assets

 

$

1,215,755

 

Liabilities

 

 

 

 

Interest-bearing deposits

 

$

670,054

 

Non-interest bearing deposits

 

 

309,464

 

Borrowings

 

 

84,831

 

Accrued expenses and other liabilities

 

 

5,245

 

Total liabilities

 

$

1,069,594

 

Net assets acquired

 

$

146,161

 

 

Purchase price:

 

 

 

 

 

 

 

 

 

Equity consideration

 

 

 

 

 

 

 

 

 

Common stock issued

 

 

1,521,200

 

 

 

 

 

 

Price per share as of July 31, 2017

 

$

34.37

 

 

 

 

 

 

Total equity consideration

 

 

 

 

 

$

52,284

 

 

Cash consideration

 

 

 

 

 

 

184,200

 

(2)

Total consideration paid

 

 

 

 

 

$

236,484

 

 

Preliminary allocation of consideration paid:

 

 

 

 

 

 

 

 

 

Fair value of net assets acquired including identifiable intangible assets

 

 

 

 

 

$

146,161

 

 

Goodwill

 

 

 

 

 

 

90,323

 

 

Total consideration paid

 

 

 

 

 

$

236,484

 

 

(1)

Amounts include certain reclassifications of opening balances to conform to the Company’s presentation.

(2)

Amount was deposited into an interest-bearing account with the Bank in the name of the Seller as of July 31, 2017.

The following unaudited pro forma condensed consolidated financial information presents the results of operations for the three and six months ended June 30, 2017 as though the merger had been completed as of January 1, 2016. The unaudited estimated pro forma information combines the historical results of the Clayton Banks with the Company’s historical consolidated results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments including loan discount accretion, amortization of core deposit and other intangibles and amortization of the discount on time deposits for the period presented. The pro forma information is not indicative of what would have occurred had the acquisition taken place on January 1, 2016 and does not include the effect of all cost-saving or revenue-enhancing strategies.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2017

 

 

2017

 

Net interest income

 

$

47,404

 

 

$

94,091

 

Total revenues

 

$

84,545

 

 

$

163,826

 

Net income

 

$

17,290

 

 

$

34,018

 

 

 

v3.10.0.1
Investment securities
6 Months Ended
Jun. 30, 2018
Investments Debt And Equity Securities [Abstract]  
Investment securities

Note (3)—Investment securities:

The amortized cost of securities and their fair values at June 30, 2018 and December 31, 2017 are shown below:

 

 

June 30, 2018

 

 

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair Value

 

Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale debt securities

 

 

 

 

 

 

 

U.S. government agency securities

 

$

999

 

 

$

 

 

$

(16

)

 

$

983

 

Mortgage-backed securities - residential

 

 

494,599

 

 

 

169

 

 

 

(16,794

)

 

 

477,974

 

Municipals, tax exempt

 

 

122,710

 

 

 

1,472

 

 

 

(1,935

)

 

 

122,247

 

Treasury securities

 

 

7,364

 

 

 

 

 

 

(208

)

 

 

7,156

 

Total

 

$

625,672

 

 

$

1,641

 

 

$

(18,953

)

 

$

608,360

 

 

As of June 30, 2018, the Company also had $3,075 in marketable equity securities recorded at fair value. Net losses of $43 and $81 were recognized due to changes in fair value of these securities during the three and six months ended June 30, 2018, respectively. As of January 1, 2018, the Company adopted ASU 2016-01 (See Note 1) and reclassified $3,604 of other securities without readily determinable market values to other assets.

 

 

December 31, 2017

 

 

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair Value

 

Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency securities

 

$

999

 

 

$

 

 

$

(13

)

 

$

986

 

Mortgage-backed securities - residential

 

 

425,557

 

 

 

374

 

 

 

(7,150

)

 

 

418,781

 

Municipals, tax exempt

 

 

107,127

 

 

 

2,692

 

 

 

(568

)

 

 

109,251

 

Treasury securities

 

 

7,345

 

 

 

 

 

 

(93

)

 

 

7,252

 

Total debt securities

 

 

541,028

 

 

 

3,066

 

 

 

(7,824

)

 

 

536,270

 

Equity and other securities

 

 

7,870

 

 

 

1

 

 

 

(149

)

 

 

7,722

 

Total investment securities

 

$

548,898

 

 

$

3,067

 

 

$

(7,973

)

 

$

543,992

 

 

Securities pledged at June 30, 2018 and December 31, 2017 had a carrying amount of $433,780 and $337,604, respectively, and were pledged to secure Federal Home Loan Bank advances, a Federal Reserve Bank line of credit, public deposits and repurchase agreements.

 

The amortized cost and fair value of debt securities by contractual maturity at June 30, 2018 and December 31, 2017 are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgage underlying the security may be called or repaid without any penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.

 

 

 

June 30, 2018

 

 

December 31, 2017

 

 

 

Available-for-sale

 

 

Available-for-sale

 

 

 

Amortized cost

 

 

Fair value

 

 

Amortized cost

 

 

Fair value

 

Due in one year or less

 

$

11,991

 

 

$

12,195

 

 

$

905

 

 

$

925

 

Due in one to five years

 

 

20,026

 

 

 

20,083

 

 

 

28,332

 

 

 

28,878

 

Due in five to ten years

 

 

18,795

 

 

 

18,769

 

 

 

19,218

 

 

 

19,588

 

Due in over ten years

 

 

80,261

 

 

 

79,339

 

 

 

67,016

 

 

 

68,098

 

 

 

 

131,073

 

 

 

130,386

 

 

 

115,471

 

 

 

117,489

 

Mortgage-backed securities - residential

 

 

494,599

 

 

 

477,974

 

 

 

425,557

 

 

 

418,781

 

Total debt securities

 

$

625,672

 

 

$

608,360

 

 

$

541,028

 

 

$

536,270

 

 

Sales of available-for-sale securities were as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Proceeds from sales

 

$

 

 

$

12,158

 

 

$

221

 

 

 

12,158

 

Gross realized gains

 

 

 

 

 

77

 

 

 

 

 

 

77

 

Gross realized losses

 

 

 

 

 

48

 

 

 

9

 

 

 

48

 

 

 

 

The Company also recognized $1 in gains related to the early call of available for sale securities during the three months ended June 30, 2018 and six months ended June 30, 2017.

The following tables show gross unrealized losses at June 30, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

 

 

 

June 30, 2018

 

 

 

Less than 12 months

 

 

12 months or more

 

 

Total

 

 

 

Fair Value

 

 

Unrealized Loss

 

 

Fair Value

 

 

Unrealized Loss

 

 

Fair Value

 

 

Unrealized loss

 

U.S. government agency securities

 

$

 

 

$

 

 

$

983

 

 

$

16

 

 

$

983

 

 

$

16

 

Mortgage-backed securities - residential

 

 

185,980

 

 

 

4,472

 

 

 

261,675

 

 

 

12,322

 

 

 

447,655

 

 

 

16,794

 

Municipals, tax exempt

 

 

32,413

 

 

 

760

 

 

 

19,158

 

 

 

1,175

 

 

 

51,571

 

 

 

1,935

 

Treasury securities

 

 

7,156

 

 

 

208

 

 

 

 

 

 

 

 

 

7,156

 

 

$

208

 

Total debt securities

 

$

225,549

 

 

$

5,440

 

 

$

281,816

 

 

$

13,513

 

 

$

507,365

 

 

$

18,953

 

 

 

 

December 31, 2017

 

 

 

Less than 12 months

 

 

12 months or more

 

 

Total

 

 

 

Fair Value

 

 

Unrealized Loss

 

 

Fair Value

 

 

Unrealized Loss

 

 

Fair Value

 

 

Unrealized loss

 

U.S. government agency securities

 

$

 

 

$

 

 

$

986

 

 

$

13

 

 

$

986

 

 

$

13

 

Mortgage-backed securities - residential

 

 

107,611

 

 

 

980

 

 

 

290,258

 

 

 

6,170

 

 

 

397,869

 

 

 

7,150

 

Municipals, tax exempt

 

 

7,354

 

 

 

101

 

 

 

20,112

 

 

 

467

 

 

 

27,466

 

 

 

568

 

Treasury securities

 

 

7,252

 

 

 

93

 

 

 

 

 

 

 

 

 

7,252

 

 

 

93

 

Total debt securities

 

 

122,217

 

 

 

1,174

 

 

 

311,356

 

 

 

6,650

 

 

 

433,573

 

 

 

7,824

 

Equity and other securities

 

 

 

 

 

 

 

 

3,050

 

 

 

149

 

 

 

3,050

 

 

 

149

 

 

 

$

122,217

 

 

$

1,174

 

 

$

314,406

 

 

$

6,799

 

 

$

436,623

 

 

$

7,973

 

As of June 30, 2018 and December 31, 2017, the Company’s securities portfolio consisted of 329 and 294 securities, 181 and 124 of which were in an unrealized loss position, respectively.

The Company evaluates securities with unrealized losses for other-than-temporary impairment (OTTI) on a quarterly basis and recorded no OTTI for the three or six months ended June 30, 2018 and 2017. Impairment is assessed at the individual security level. The Company considers an investment security impaired if the fair value of the security is less than its cost or amortized cost basis. For debt securities, the unrealized losses associated with these investment securities are primarily driven by interest rates and are not due to the credit quality of the securities. The Company currently does not intend to sell those investments with unrealized losses, and it is unlikely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity.

v3.10.0.1
Loans and Allowance for Loan Losses
6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Loans and allowance for loan losses

Note (4)—Loans and allowance for loan losses:

Loans outstanding at June 30, 2018 and December 31, 2017, by major lending classification are as follows:

 

 

 

June 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Commercial  and industrial

 

$

813,054

 

 

$

715,075

 

Construction

 

 

522,471

 

 

 

448,326

 

Residential real estate:

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

528,158

 

 

 

480,989

 

Residential line of credit

 

 

208,668

 

 

 

194,986

 

Multi-family mortgage

 

 

57,344

 

 

 

62,374

 

Commercial real estate:

 

 

 

 

 

 

 

 

Owner occupied

 

 

470,872

 

 

 

495,872

 

Non-owner occupied

 

 

600,629

 

 

 

551,588

 

Consumer and other

 

 

214,379

 

 

 

217,701

 

Gross loans

 

 

3,415,575

 

 

 

3,166,911

 

Less: Allowance for loan losses

 

 

(26,347

)

 

 

(24,041

)

Net loans

 

$

3,389,228

 

 

$

3,142,870

 

 

As of June 30, 2018 and December 31, 2017, $598,522 and $761,197, respectively, of qualifying residential mortgage loans (including loans held for sale) and $539,621 and $207,370, respectively, of qualifying commercial mortgage loans were pledged to the Federal Home Loan Bank of Cincinnati securing advances against the Bank’s line. As of June 30, 2018 and December 31, 2017, $1,218,505 and $724,312, respectively, of qualifying loans were pledged to the Federal Reserve Bank under the Borrower-in-Custody program.

As of June 30, 2018 and December 31, 2017, the carrying value of purchased credit impaired loans (“PCI”) loans accounted for under ASC 310-30 Loans and Debt Securities Acquired with Deteriorated Credit Quality, were $78,313 and $88,835, respectively. The following table presents changes in the value of the accretable yield for PCI loans for the periods indicated.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Balance at beginning of period

 

$

(16,955

)

 

$

(2,142

)

 

$

(17,682

)

 

$

(2,444

)

Principal reductions/ pay-offs

 

 

(2,158

)

 

 

(292

)

 

 

(3,452

)

 

 

(990

)

Recoveries

 

 

 

 

 

 

 

 

 

 

 

(23

)

Accretion

 

 

2,639

 

 

 

589

 

 

 

4,840

 

 

 

1,612

 

Other changes

 

 

(3,695

)

 

 

 

 

 

(3,875

)

 

 

 

Balance at end of period

 

$

(20,169

)

 

$

(1,845

)

 

$

(20,169

)

 

$

(1,845

)

 

Included in the ending balance in the table above at June 30, 2018, are PCI loans with a purchase accounting liquidity discount of $4,212. There is also a purchase accounting nonaccretable credit discount of $5,236 related to the PCI loan portfolio at June 30, 2018 and an accretable credit and liquidity discount on non-PCI loans of $9,337 and $3,018, respectively.

 

Interest revenue, through accretion of the difference between the carrying value of the loans and the expected cash flows, is being recognized on all PCI loans. Accretion of interest income amounting to $2,639 and $4,840 was recognized on purchased credit impaired loans during the three and six months ended June 30, 2018, respectively, compared with $589 and $1,612 for the three and six months ended June 30, 2017, respectively. This includes both the contractual interest income and the purchase accounting contribution through accretion of the liquidity discount and credit mark for changes in estimated cash flows. The total purchase accounting contribution through accretion for all purchased loans was $1,928 and $3,615 for three and six months ended June 30, 2018, respectively, compared with $848 and $2,008 for the three and six months ended June 30, 2017.

 

The following provides the allowance for loan losses by portfolio segment and the related investment in loans net of unearned interest for the three and six months ended June 30, 2018 and 2017:

 

 

 

Commercial

and industrial

 

 

Construction

 

 

1-to-4

family

residential

mortgage

 

 

Residential

line of credit

 

 

Multi-

family

residential

mortgage

 

 

Commercial

real estate

owner

occupied

 

 

Commercial

real estate

non-owner occupied

 

 

Consumer

and other

 

 

Total

 

Three Months Ended June 30, 2018

 

Beginning balance -

   March 31, 2018

 

$

4,578

 

 

$

7,866

 

 

$

3,122

 

 

$

1,165

 

 

$

449

 

 

$

3,014

 

 

$

2,753

 

 

$

1,459

 

 

$

24,406

 

Provision for loan losses

 

 

39

 

 

 

310

 

 

 

218

 

 

 

(414

)

 

 

(58

)

 

 

168

 

 

 

519

 

 

 

281

 

 

 

1,063

 

Recoveries of loans

   previously charged-off

 

 

135

 

 

 

862

 

 

 

43

 

 

 

44

 

 

 

 

 

 

108

 

 

 

 

 

 

107

 

 

 

1,299

 

Loans charged off

 

 

(5

)

 

 

(15

)

 

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(396

)

 

 

(421

)

Ending balance -

   June 30, 2018

 

$

4,747

 

 

$

9,023

 

 

$

3,378

 

 

$

795

 

 

$

391

 

 

$

3,290

 

 

$

3,272

 

 

$

1,451

 

 

$

26,347

 

Six Months Ended June 30, 2018

 

Beginning balance -

   December 31, 2017

 

$

4,461

 

 

$

7,135

 

 

$

3,197

 

 

$

944

 

 

$

434

 

 

$

3,558

 

 

$

2,817

 

 

$

1,495

 

 

$

24,041

 

Provision for loan losses

 

 

241

 

 

 

789

 

 

 

188

 

 

 

(200

)

 

 

(43

)

 

 

(399

)

 

 

404

 

 

 

400

 

 

 

1,380

 

Recoveries of loans

   previously charged-off

 

 

270

 

 

 

1,114

 

 

 

58

 

 

 

71

 

 

 

 

 

 

131

 

 

 

51

 

 

 

313

 

 

 

2,008

 

Loans charged off

 

 

(225

)

 

 

(15

)

 

 

(65

)

 

 

(20

)

 

 

 

 

 

 

 

 

 

 

 

(757

)

 

 

(1,082

)

Ending balance -

   June 30, 2018

 

$

4,747

 

 

$

9,023

 

 

$

3,378

 

 

$

795

 

 

$

391

 

 

$

3,290

 

 

$

3,272

 

 

$

1,451

 

 

$

26,347

 

 

 

 

Commercial

and industrial

 

 

Construction

 

 

1-to-4

family

residential mortgage

 

 

Residential

line of credit

 

 

Multi-

family

residential mortgage

 

 

Commercial

real estate

owner

occupied

 

 

Commercial

real estate

non-owner occupied

 

 

Consumer

and other

 

 

Total

 

Three Months Ended June 30, 2017

 

Beginning balance -

   March 31, 2017

 

$

5,402

 

 

$

5,598

 

 

$

2,896

 

 

$

1,514

 

 

$

508

 

 

$

3,387

 

 

$

2,660

 

 

$

933

 

 

$

22,898

 

Provision for loan losses

 

 

(1,342

)

 

 

(48

)

 

 

99

 

 

 

(29

)

 

 

5

 

 

 

585

 

 

 

(210

)

 

 

75

 

 

 

(865

)

Recoveries of loans

   previously charged-off

 

 

1,511

 

 

 

29

 

 

 

14

 

 

 

155

 

 

 

 

 

 

11

 

 

 

2

 

 

 

283

 

 

 

2,005

 

Loans charged off

 

 

(131

)

 

 

 

 

 

(35

)

 

 

(195

)

 

 

 

 

 

 

 

 

 

 

 

(430

)

 

 

(791

)

Ending balance -

   June 30, 2017

 

$

5,440

 

 

$

5,579

 

 

$

2,974

 

 

$

1,445

 

 

$

513

 

 

$

3,983

 

 

$

2,452

 

 

$

861

 

 

$

23,247

 

Six Months Ended June 30, 2017

 

 

 

 

 

Beginning balance - December 31, 2016

 

$

5,309

 

 

$

4,940

 

 

$

3,197

 

 

$

1,613

 

 

$

504

 

 

$

3,302

 

 

$

2,019

 

 

$

863

 

 

$

21,747

 

Provision for loan losses

 

 

(1,163

)

 

 

587

 

 

 

(140

)

 

 

(184

)

 

 

9

 

 

 

666

 

 

 

(1,208

)

 

 

311

 

 

 

(1,122

)

Recoveries of loans

   previously charged-off

 

 

1,594

 

 

 

58

 

 

 

40

 

 

 

211

 

 

 

 

 

 

15

 

 

 

1,641

 

 

 

296

 

 

 

3,855

 

Loans charged off

 

 

(300

)

 

 

(6

)

 

 

(123

)

 

 

(195

)

 

 

 

 

 

 

 

 

 

 

 

(609

)

 

 

(1,233

)

Ending balance -

   June 30, 2017

 

$

5,440

 

 

$

5,579

 

 

$

2,974

 

 

$

1,445

 

 

$

513

 

 

$

3,983

 

 

$

2,452

 

 

$

861

 

 

$

23,247

 

The following table provides the allocation of the allowance for loan losses by loan category broken out between loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of June 30, 2018 and December 31, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2018

 

 

 

Commercial

and industrial

 

 

Construction

 

 

1-to-4

family

residential mortgage

 

 

Residential

line of credit

 

 

Multi-

family

residential mortgage

 

 

Commercial

real estate

owner

occupied

 

 

Commercial

real estate

non-owner occupied

 

 

Consumer

and other

 

 

Total

 

Amount of allowance allocated to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for

   impairment

 

$

49

 

 

$

 

 

$

12

 

 

$

 

 

$

 

 

$

124

 

 

$

 

 

$

 

 

$

185

 

Collectively evaluated for

   impairment

 

 

4,685

 

 

 

8,998

 

 

 

3,227

 

 

 

795

 

 

 

391

 

 

 

3,082

 

 

 

2,894

 

 

 

1,407

 

 

 

25,479

 

Acquired with deteriorated

   credit quality

 

 

13

 

 

 

25

 

 

 

139

 

 

 

 

 

 

 

 

 

84

 

 

 

378

 

 

 

44

 

 

 

683

 

Ending balance -

   June 30, 2018

 

$

4,747

 

 

$

9,023

 

 

$

3,378

 

 

$

795

 

 

$

391

 

 

$

3,290

 

 

$

3,272

 

 

$

1,451

 

 

$

26,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

Commercial

and industrial

 

 

Construction

 

 

1-to-4

family

residential mortgage

 

 

Residential

line of credit

 

 

Multi-

family

residential mortgage

 

 

Commercial

real estate

owner

occupied

 

 

Commercial

real estate

non-owner occupied

 

 

Consumer

and other

 

 

Total

 

Amount of allowance allocated to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for

   impairment

 

$

20

 

 

$

 

 

$

18

 

 

$

 

 

$

 

 

$

120

 

 

$

33

 

 

$

 

 

$

191

 

Collectively evaluated for

   impairment

 

 

4,441

 

 

 

7,135

 

 

 

3,179

 

 

 

944

 

 

 

434

 

 

 

3,438

 

 

 

2,784

 

 

 

1,495

 

 

 

23,850

 

Acquired with deteriorated

   credit quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance -

   December 31, 2017

 

$

4,461

 

 

$

7,135

 

 

$

3,197

 

 

$

944

 

 

$

434

 

 

$

3,558

 

 

$

2,817

 

 

$

1,495

 

 

$

24,041

 

 

The following table provides the amount of loans by loan category broken between loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of June 30, 2018 and December 31, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2018

 

 

 

Commercial

and industrial

 

 

Construction

 

 

1-to-4

family

residential mortgage

 

 

Residential line of credit

 

 

Multi-

family

residential mortgage

 

 

Commercial

real estate

owner

occupied

 

 

Commercial

real estate

non-owner occupied

 

 

Consumer and other

 

 

Total

 

Loans, net of unearned income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for

   impairment

 

$

2,186

 

 

$

1,281

 

 

$

1,503

 

 

$

 

 

$

951

 

 

$

2,266

 

 

$

1,049

 

 

$

27

 

 

$

9,263

 

Collectively evaluated for

   impairment

 

 

809,102

 

 

 

514,129

 

 

 

505,643

 

 

 

208,668

 

 

 

56,377

 

 

 

460,281

 

 

 

581,531

 

 

 

192,268

 

 

 

3,327,999

 

Acquired with deteriorated

   credit quality

 

 

1,766

 

 

 

7,061

 

 

 

21,012

 

 

 

 

 

 

16

 

 

 

8,325

 

 

 

18,049

 

 

 

22,084

 

 

 

78,313

 

Ending balance -

   June 30, 2018

 

$

813,054

 

 

$

522,471

 

 

$

528,158

 

 

$

208,668

 

 

$

57,344

 

 

$

470,872

 

 

$

600,629

 

 

$

214,379

 

 

$

3,415,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

Commercial

and industrial

 

 

Construction

 

 

1-to-4

family

residential mortgage

 

 

Residential line of credit

 

 

Multi-

family

residential mortgage

 

 

Commercial

real estate

owner

occupied

 

 

Commercial

real estate

non-owner occupied

 

 

Consumer

and other

 

 

Total

 

Loans, net of unearned income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated

   for impairment

 

$

1,579

 

 

$

1,289

 

 

$

1,262

 

 

$

 

 

$

978

 

 

$

2,520

 

 

$

1,720

 

 

$

25

 

 

$

9,373

 

Collectively evaluated

   for impairment

 

 

711,352

 

 

 

439,309

 

 

 

456,229

 

 

 

194,986

 

 

 

61,376

 

 

 

481,390

 

 

 

531,704

 

 

 

192,357

 

 

 

3,068,703

 

Acquired with deteriorated

   credit quality

 

 

2,144

 

 

 

7,728

 

 

 

23,498

 

 

 

 

 

 

20

 

 

 

11,962

 

 

 

18,164

 

 

 

25,319

 

 

 

88,835

 

Ending balance -

   December 31, 2017

 

$

715,075

 

 

$

448,326

 

 

$

480,989

 

 

$

194,986

 

 

$

62,374

 

 

$

495,872

 

 

$

551,588

 

 

$

217,701

 

 

$

3,166,911

 

 

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. The Company’s risk rating definitions include:

Watch.    Loans rated as watch includes loans in which management believes conditions have occurred, or may occur, which could result in the loan being downgraded to a worse rated category. Also included in watch are loans rated as special mention, which have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard.    Loans rated as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so rated have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Also included in this category are loans considered doubtful, which have all the weaknesses previously described and management believes those weaknesses may make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above are considered to be pass rated loans.

The following table shows credit quality indicators by portfolio class at June 30, 2018 and December 31, 2017:

 

June 30, 2018

 

Pass

 

 

Watch

 

 

Substandard

 

 

Total

 

Loans, excluding purchased credit impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

746,253

 

 

$

59,476

 

 

$

5,559

 

 

$

811,288

 

Construction

 

 

499,370

 

 

 

14,278

 

 

 

1,762

 

 

 

515,410

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

490,856

 

 

 

8,625

 

 

 

7,665

 

 

 

507,146

 

Residential line of credit

 

 

205,614

 

 

 

1,632

 

 

 

1,422

 

 

 

208,668

 

Multi-family mortgage

 

 

56,245

 

 

 

133

 

 

 

950

 

 

 

57,328

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

434,025

 

 

 

20,435

 

 

 

8,087

 

 

 

462,547

 

Non-owner occupied

 

 

565,195

 

 

 

16,096

 

 

 

1,289

 

 

 

582,580

 

Consumer and other

 

 

185,919

 

 

 

2,289

 

 

 

4,087

 

 

 

192,295

 

Total loans, excluding purchased credit impaired

   loans

 

$

3,183,477

 

 

$

122,964

 

 

$

30,821

 

 

$

3,337,262

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased credit impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

 

 

$

1,187

 

 

$

579

 

 

$

1,766

 

Construction

 

 

 

 

 

3,332

 

 

 

3,729

 

 

 

7,061

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

 

 

 

16,721

 

 

 

4,291

 

 

 

21,012

 

Residential line of credit

 

 

 

 

 

 

 

 

 

 

 

 

Multi-family mortgage

 

 

 

 

 

 

 

 

16

 

 

 

16

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

 

 

 

4,488

 

 

 

3,837

 

 

 

8,325

 

Non-owner occupied

 

 

 

 

 

7,465

 

 

 

10,584

 

 

 

18,049

 

Consumer and other

 

 

 

 

 

17,474

 

 

 

4,610

 

 

 

22,084

 

Total purchased credit impaired loans

 

$

 

 

$

50,667

 

 

$

27,646

 

 

$

78,313

 

Total loans

 

$

3,183,477

 

 

$

173,631

 

 

$

58,467

 

 

$

3,415,575

 

 

December 31, 2017

 

Pass

 

 

Watch

 

 

Substandard

 

 

Total

 

Loans, excluding purchased credit impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

657,595

 

 

$

50,946

 

 

$

4,390

 

 

$

712,931

 

Construction

 

 

431,242

 

 

 

7,388

 

 

 

1,968

 

 

 

440,598

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

440,202

 

 

 

9,522

 

 

 

7,767

 

 

 

457,491

 

Residential line of credit

 

 

192,427

 

 

 

1,184

 

 

 

1,375

 

 

 

194,986

 

Multi-family mortgage

 

 

61,234

 

 

 

142

 

 

 

978

 

 

 

62,354

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

451,140

 

 

 

28,308

 

 

 

4,462

 

 

 

483,910

 

Non-owner occupied

 

 

517,253

 

 

 

14,199

 

 

 

1,972

 

 

 

533,424

 

Consumer and other

 

 

189,081

 

 

 

2,712

 

 

 

589

 

 

 

192,382

 

Total loans, excluding purchased credit impaired

   loans

 

$

2,940,174

 

 

$

114,401

 

 

$

23,501

 

 

$

3,078,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased credit impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

 

 

$

1,499

 

 

$

645

 

 

$

2,144

 

Construction

 

 

 

 

 

3,324

 

 

 

4,404

 

 

 

7,728

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

 

 

 

20,284

 

 

 

3,214

 

 

 

23,498

 

Residential line of credit

 

 

 

 

 

 

 

 

 

 

 

 

Multi-family mortgage

 

 

 

 

 

 

 

 

20

 

 

 

20

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

 

 

 

4,631

 

 

 

7,331

 

 

 

11,962

 

Non-owner occupied

 

 

 

 

 

7,359

 

 

 

10,805

 

 

 

18,164

 

Consumer and other

 

 

 

 

 

19,751

 

 

 

5,568

 

 

 

25,319

 

Total purchased credit impaired loans

 

$

 

 

$

56,848

 

 

$

31,987

 

 

$

88,835

 

Total loans

 

$

2,940,174

 

 

$

171,249

 

 

$

55,488

 

 

$

3,166,911

 

 

PCI loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the due date of the scheduled payment. However, these loans are considered to be performing, even though they may be contractually past due, as any non-payment of contractual principal or interest is considered in the periodic re-estimation of expected cash flows and is included in the resulting recognition of current period covered loan loss provision or future period yield adjustments. The accrual of interest is discontinued on PCI loans if management can no longer reliably estimate future cash flows on the loan. No PCI loans were classified as nonaccrual at June 30, 2018 or December 31, 2017 as the carrying value of the respective loan or pool of loans cash flows were considered estimable and probable of collection.

 

Nonperforming loans include loans that are no longer accruing interest (non-accrual loans) and loans past due ninety or more days and still accruing interest. Nonperforming loans and impaired loans are defined differently. Some loans may be included in both categories, whereas other loans may only be included in one category.

The following table provides the period-end amounts of loans that are past due thirty to eighty-nine days, past due ninety or more days and still accruing interest, loans not accruing interest, loans current on payments accruing interest and purchased credit impaired loans by category at June 30, 2018 and December 31, 2017:

 

June 30, 2018

 

30-89 days

past due

 

 

90 days or more

and accruing

interest

 

 

Non-accrual

loans

 

 

Loans current

on payments

and accruing

interest

 

 

Purchased Credit Impaired loans

 

 

Total

 

Commercial and industrial

 

$

3,138

 

 

$

145

 

 

$

707

 

 

$

807,298

 

 

$

1,766

 

 

$

813,054

 

Construction

 

 

850

 

 

 

193

 

 

 

328

 

 

 

514,039

 

 

 

7,061

 

 

 

522,471

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

3,605

 

 

 

859

 

 

 

2,293

 

 

 

500,389

 

 

 

21,012

 

 

 

528,158

 

Residential line of credit

 

 

1,345

 

 

 

254

 

 

 

507

 

 

 

206,562

 

 

 

 

 

 

208,668

 

Multi-family mortgage

 

 

 

 

 

 

 

 

 

 

 

57,328

 

 

 

16

 

 

 

57,344

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

249

 

 

 

 

 

 

2,052

 

 

 

460,246

 

 

 

8,325

 

 

 

470,872

 

Non-owner occupied

 

 

 

 

 

 

 

 

1,212

 

 

 

581,368

 

 

 

18,049

 

 

 

600,629

 

Consumer and other

 

 

1,807

 

 

 

188

 

 

 

75

 

 

 

190,225

 

 

 

22,084

 

 

 

214,379

 

Total

 

$

10,994

 

 

$

1,639

 

 

$

7,174

 

 

$

3,317,455

 

 

$

78,313

 

 

$

3,415,575

 

 

 

December 31, 2017

 

30-89 days

past due

 

 

90 days or more

and accruing

interest

 

 

Non-accrual

loans

 

 

Loans current

on payments

and accruing

interest

 

 

Purchased Credit Impaired loans

 

 

Total

 

Commercial and industrial

 

$

5,859

 

 

$

90

 

 

$

533

 

 

$

706,449

 

 

$

2,144

 

 

$

715,075

 

Construction

 

 

1,412

 

 

 

241

 

 

 

300

 

 

 

438,645

 

 

 

7,728

 

 

 

448,326

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

4,678

 

 

 

956

 

 

 

2,548

 

 

 

449,309

 

 

 

23,498

 

 

 

480,989

 

Residential line of credit

 

 

527

 

 

 

134

 

 

 

699

 

 

 

193,626

 

 

 

 

 

 

194,986

 

Multi-family mortgage

 

 

 

 

 

 

 

 

 

 

 

62,354

 

 

 

20

 

 

 

62,374

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

521

 

 

 

358

 

 

 

2,582

 

 

 

480,449

 

 

 

11,962

 

 

 

495,872

 

Non-owner occupied

 

 

121

 

 

 

 

 

 

1,371

 

 

 

531,932

 

 

 

18,164

 

 

 

551,588

 

Consumer and other

 

 

1,945

 

 

 

217

 

 

 

68

 

 

 

190,152

 

 

 

25,319

 

 

 

217,701

 

Total

 

$

15,063

 

 

$

1,996

 

 

$

8,101

 

 

$

3,052,916

 

 

$

88,835

 

 

$

3,166,911

 

 

Impaired loans recognized in conformity with ASC 310-20 at June 30, 2018 and December 31, 2017, segregated by class, were as follows:

 

June 30, 2018

 

Recorded

investment

 

 

Unpaid

principal

 

 

Related

allowance

 

With a related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

153

 

 

$

153

 

 

$

49

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

187

 

 

 

488

 

 

 

12

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

754

 

 

 

819

 

 

 

124

 

Total

 

$

1,094

 

 

$

1,460

 

 

$

185

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

2,033

 

 

$

2,387

 

 

$

 

Construction

 

 

1,281

 

 

 

1,314

 

 

 

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

1,316

 

 

 

1,322

 

 

 

 

Multi-family mortgage

 

 

951

 

 

 

951

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

1,512

 

 

 

2,039

 

 

 

 

Non-owner occupied

 

 

1,049

 

 

 

1,781

 

 

 

 

Consumer and other

 

 

27

 

 

 

27

 

 

 

 

Total

 

$

8,169

 

 

$

9,821

 

 

$

 

Total impaired loans

 

$

9,263

 

 

$

11,281

 

 

$

185

 

 

December 31, 2017

 

Recorded

investment

 

 

Unpaid

principal

 

 

Related

allowance

 

With a related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

53

 

 

$

53

 

 

$

20

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

194

 

 

 

495

 

 

 

18

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

844

 

 

 

1,123

 

 

 

120

 

Non-owner occupied

 

 

144

 

 

 

150

 

 

 

33

 

Total

 

$

1,235

 

 

$

1,821

 

 

$

191

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

1,526

 

 

$

1,570

 

 

$

 

Construction

 

 

1,289

 

 

 

1,313

 

 

 

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

1,068

 

 

 

1,072

 

 

 

 

Multi-family mortgage

 

 

978

 

 

 

978

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

1,676

 

 

 

2,168

 

 

 

 

Non-owner occupied

 

 

1,576

 

 

 

2,325

 

 

 

 

Consumer and other

 

 

25

 

 

 

25

 

 

 

 

Total

 

$

8,138

 

 

$

9,451

 

 

$

 

Total impaired loans

 

$

9,373

 

 

$

11,272

 

 

$

191

 

Average recorded investment and interest income on a cash basis recognized during the three and six months ended June 30, 2018 and 2017 on impaired loans, segregated by class, were as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

June 30, 2018

 

Average recorded investment

 

 

Interest income recognized (cash basis)

 

 

Average recorded investment

 

 

Interest income recognized (cash basis)

 

With a related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

103

 

 

$

2

 

 

$

103

 

 

$

3

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

189

 

 

 

2

 

 

 

191

 

 

 

4

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

670

 

 

 

21

 

 

 

799

 

 

 

27

 

Non-owner occupied

 

 

71

 

 

 

 

 

 

72

 

 

 

2

 

Total

 

$

1,033

 

 

$

25

 

 

$

1,165

 

 

$

36

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

1,683

 

 

$

43

 

 

$

1,780

 

 

$

59

 

Construction

 

 

1,283

 

 

 

6

 

 

 

1,285

 

 

 

36

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

1,309

 

 

 

31

 

 

 

1,192

 

 

 

44

 

Multi-family mortgage

 

 

958

 

 

 

12

 

 

 

965

 

 

 

24

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

1,539

 

 

 

28

 

 

 

1,594

 

 

 

60

 

Non-owner occupied

 

 

1,310

 

 

 

 

 

 

1,313

 

 

 

7

 

Consumer and other

 

 

28

 

 

 

1

 

 

 

26

 

 

 

1

 

Total

 

$

8,110

 

 

$

121

 

 

$

8,155

 

 

$

231

 

Total impaired loans

 

$

9,143

 

 

$

146

 

 

$

9,320

 

 

$

267

 

June 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With a related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

729

 

 

$

5

 

 

$

792

 

 

$

10

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

98

 

 

 

 

 

 

100

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

616

 

 

 

8

 

 

 

622

 

 

 

20

 

Non-owner occupied

 

 

514

 

 

 

2

 

 

 

829

 

 

 

2

 

Consumer and other

 

 

 

 

 

 

 

 

1

 

 

 

 

Total

 

$

1,957

 

 

$

15

 

 

$

2,344

 

 

$

32

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

519

 

 

$

7

 

 

$

557

 

 

$

16

 

Construction

 

 

302

 

 

 

4

 

 

 

1,493

 

 

 

9

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

2,106

 

 

 

15

 

 

 

2,232

 

 

 

32

 

Residential line of credit

 

 

 

 

 

 

 

 

156

 

 

 

 

Multi-family mortgage

 

 

1,008

 

 

 

12

 

 

 

1,014

 

 

 

23

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

1,801

 

 

 

23

 

 

 

1,941

 

 

 

61

 

Non-owner occupied

 

 

1,602

 

 

 

5

 

 

 

1,323

 

 

 

5

 

Consumer and other

 

 

25

 

 

 

 

 

 

25

 

 

 

1

 

Total

 

$

7,363

 

 

$

66

 

 

$

8,741

 

 

$

147

 

Total impaired loans

 

$

9,320

 

 

$

81

 

 

$

11,085

 

 

$

179

 

 

 

As of June 30, 2018 and December 31, 2017, the Company has a recorded investment in troubled debt restructurings of $8,603 and $8,604, respectively. The modifications included extensions of the maturity date and/or a stated rate of interest to one lower than the current market rate. The Company has allocated $90 and $172 of specific reserves for those loans at June 30, 2018 and December 31, 2017, respectively, and has committed to lend additional amounts totaling up to $4 and $2, respectively to these customers. Of these loans, $3,000 and $3,205 were classified as non-accrual loans as of June 30, 2018 and December 31, 2017, respectively.

The following tables present the financial effect of TDRs recorded during the periods indicated:

 

Three Months Ended June 30, 2018

 

Number of loans

 

 

Pre-modification outstanding recorded investment

 

 

Post-modification outstanding recorded investment

 

 

Charge offs and specific reserves

 

Commercial and industrial

 

 

2

 

 

$

887

 

 

$

887

 

 

$

 

Total

 

 

2

 

 

$

887

 

 

$

887

 

 

$

 

 

Six Months Ended June 30, 2018

 

Number of loans

 

Pre-modification outstanding recorded investment

 

 

Post-modification outstanding recorded investment

 

 

Charge offs and specific reserves

 

Commercial and industrial

 

2

 

$

887

 

 

$

887

 

 

$

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

1

 

 

249

 

 

 

249

 

 

 

 

Consumer and other

 

1

 

 

5

 

 

 

5

 

 

 

 

Total

 

4

 

$

1,141

 

 

$

1,141

 

 

$

 

 

Six Months Ended June 30, 2017

 

Number of loans

 

Pre-modification outstanding recorded investment

 

 

Post-modification outstanding recorded investment

 

 

Charge offs and specific reserves

 

Commercial and industrial

 

1

 

$

5

 

 

$

5

 

 

$

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

1

 

 

377

 

 

 

377

 

 

 

 

Non-owner occupied

 

2

 

 

711

 

 

 

711

 

 

 

 

Total

 

4

 

$

1,093

 

 

$

1,093

 

 

$

 

 

There were no TDRs recorded during the three months ended June 30, 2017. Additionally, there were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the six months ended June 30, 2018 or 2017.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

The terms of certain other loans were modified during the six months ended June 30, 2018 and 2017 that did not meet the definition of a troubled debt restructuring. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the company’s internal underwriting policy.

v3.10.0.1
Other Real Estate Owned
6 Months Ended
Jun. 30, 2018
Real Estate [Abstract]  
Other Real Estate Owned

Note (5)—Other real estate owned:

The amount reported as other real estate owned includes property acquired through foreclosure in addition to excess facilities held for sale and is carried at fair value less estimated cost to sell the property. The following table summarizes other real estate owned for the three and six months ended June 30, 2018 and 2017:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Balance at beginning of period

 

$

15,334

 

 

$

6,811

 

 

$

16,442

 

 

$

7,403

 

Transfers from loans

 

 

384

 

 

 

274

 

 

 

1,014

 

 

 

1,162

 

Properties sold

 

 

(777

)

 

 

(702

)

 

 

(2,209

)

 

 

(2,930

)

(Loss) gain on sale of other real estate owned

 

 

51

 

 

 

77

 

 

 

8

 

 

 

948

 

Transferred to loans

 

 

(325

)

 

 

(36

)

 

 

(445

)

 

 

(36

)

Write-downs

 

 

(28

)

 

 

(54

)

 

 

(171

)

 

 

(177

)

Balance at end of period

 

$

14,639

 

 

$

6,370

 

 

$

14,639

 

 

$

6,370

 

 

 

 

Foreclosed residential real estate properties totaled $3,320 and $3,631 as of June 30, 2018 and December 31, 2017, respectively. The recorded investment in residential mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $634 and $19 at June 30, 2018 and December 31, 2017, respectively.

v3.10.0.1
Mortgage Servicing Rights
6 Months Ended
Jun. 30, 2018
Transfers And Servicing Of Financial Assets [Abstract]  
Mortgage servicing rights

Note (6)—Mortgage servicing rights:

Changes in the Company’s mortgage servicing rights were as follows for the three and six months ended June 30, 2018 and 2017:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

2018

 

 

 

2017

 

 

 

2018

 

 

 

2017

 

Carrying value prior to policy change

 

$

93,160

 

 

$

47,593

 

 

$

76,107

 

 

$

32,070

 

Fair value impact of change in accounting policy

 

 

 

 

 

 

 

 

 

 

 

1,011

 

Carrying value at beginning of period

 

 

93,160

 

 

 

47,593

 

 

 

76,107

 

 

 

33,081

 

Capitalization

 

 

16,304

 

 

 

14,646

 

 

 

29,814

 

 

 

29,659

 

Sales

 

 

 

 

 

(11,935

)

 

 

 

 

 

(11,935

)

Change in fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due to pay-offs/pay-downs

 

 

(2,207

)

 

 

(532

)

 

 

(5,267

)

 

 

(797

)

Due to change in valuation inputs or assumptions

 

 

2,192

 

 

 

(1,308

)

 

 

8,795

 

 

 

(1,544

)

Carrying value at end of period

 

$

109,449

 

 

$

48,464

 

 

$

109,449

 

 

$

48,464

 

 

 

The following table summarizes servicing income and expense included in mortgage banking income and other noninterest expense within the Mortgage Segment operating results, respectively, for the three and six months ended June 30, 2018 and 2017, respectively:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended

June 30,

 

 

 

 

2018

 

 

 

2017

 

 

 

2018

 

 

 

2017

 

Servicing income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing income

 

$

5,604

 

 

$

2,747

 

 

$

10,397

 

 

$

5,495

 

Change in fair value of mortgage servicing rights

 

 

(15

)

 

 

(1,840

)

 

 

3,528

 

 

 

(2,341

)

Change in fair value of mortgage servicing rights hedging

    instruments

 

 

(1,763

)

 

 

 

 

 

(7,019

)

 

 

 

Gross servicing income

 

 

3,826

 

 

 

907

 

 

 

6,906

 

 

 

3,154

 

Servicing expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Loss on sale of mortgage servicing rights

 

 

 

 

 

249

 

 

 

 

 

 

249

 

     Direct servicing expenses

 

 

2,078

 

 

 

1,204

 

 

 

3,873

 

 

 

2,138

 

Gross servicing expense

 

 

2,078

 

 

 

1,453

 

 

 

3,873

 

 

 

2,387

 

Net servicing income

 

$

1,748

 

 

$

(546

)

 

$

3,033

 

 

$

767

 

Data and key economic assumptions related to the Company’s mortgage servicing rights as of June 30, 2018 and December 31, 2017 are as follows:

 

 

 

June 30,

 

 

December 31,

 

 

 

 

2018

 

 

 

2017

 

Unpaid principal balance

 

$

8,483,445

 

 

$

6,529,431

 

Weighted-average prepayment speed (CPR)

 

 

7.63

%

 

 

8.90

%

Estimated impact on fair value of a 10% increase

 

 

(3,588

)

 

 

(3,026

)

Estimated impact on fair value of a 20% increase

 

 

(6,921

)

 

 

(5,855

)

Discount rate

 

 

10.23

%

 

 

9.75

%

Estimated impact on fair value of a 100 bp increase

 

 

(4,578

)

 

 

(3,052

)

Estimated impact on fair value of a 200 bp increase

 

 

(8,813

)

 

 

(5,867

)

Weighted-average coupon interest rate

 

 

4.06

%

 

 

3.94

%

Weighted-average servicing fee (basis points)

 

 

28

 

 

 

28

 

Weighted-average remaining maturity (in months)

 

 

331

 

 

 

335

 

 

From time to time, the Company enters agreements to sell certain tranches of mortgage servicing rights. Upon consummation of the sale, the Company continues to subservice the underlying mortgage loans until they can be transferred to the purchaser. During the second quarter of 2018, the Company entered into a letter of intent for the sale of certain mortgage servicing rights on $3,217,580 of serviced mortgage loans, of which the Company will continue to subservice until they can be transferred to the purchaser. The transaction is expected to close during the third quarter of 2018 and the Company does not expect there to be a significant gain or loss related to this transaction. During the three months ended June 30, 2017, the Company sold $11,935 of mortgage servicing rights on $1,085,465 of serviced mortgage loans. As of June 30, 2018 and December 31, 2017, there were no loans being serviced that related to the sale of mortgage servicing rights.

v3.10.0.1
Income Taxes
6 Months Ended
Jun. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes

Note (7)—Income taxes:

Allocation of federal and state income taxes between current and deferred portions is as follows:

 

 

 

For the three months ended

 

 

 

June 30,

 

 

 

2018

 

 

2017

 

Current

 

$

2,195

 

 

$

4,047

 

Deferred

 

 

5,599

 

 

 

2,527

 

Total

 

$

7,794

 

 

$

6,574

 

 

 

 

 

 

 

 

 

 

 

 

For the six months ended

 

 

 

 

 

 

 

June 30,

 

 

 

2018

 

 

2017

 

Current

 

$

2,195

 

 

$

4,047

 

Deferred

 

 

11,081

 

 

 

7,952

 

Total

 

$

13,276

 

 

$

11,999

 

 

 

Federal income tax expense differs from the statutory federal rates of 21% for the three and six months ended June 30, 2018 and 35% for the three and six months ended June 30, 2017 due to the following:

 

 

 

For the Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

 

2018

 

 

2017

 

Federal taxes calculated at statutory rate

 

$

6,270

 

 

 

21.0

%

 

$

6,234

 

 

 

35.0

%

Increase (decrease) resulting from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State taxes, net of federal benefit

 

 

1,543

 

 

 

5.2

%

 

 

741

 

 

 

4.2

%

Benefit of equity based compensation

 

 

(15

)

 

 

-0.1

%

 

 

20

 

 

 

0.1

%

Municipal interest income, net of interest disallowance

 

 

(207

)

 

 

-0.7

%

 

 

(376

)

 

 

-2.1

%

Bank owned life insurance

 

 

(13

)

 

 

0.0

%

 

 

(21

)

 

 

-0.1

%

Stock offering costs

 

 

141

 

 

 

0.5

%

 

 

 

 

 

0.0

%

Other

 

 

75

 

 

 

0.2

%

 

 

(24

)

 

 

-0.2

%

Income tax expense, as reported

 

$

7,794

 

 

 

26.1

%

 

$

6,574

 

 

 

36.9

%

 

 

 

For the Six Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

 

2018

 

 

2017

 

Federal taxes calculated at statutory rate

 

$

11,570

 

 

 

21.0

%

 

$

11,539

 

 

 

35.0

%

Increase (decrease) resulting from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State taxes, net of federal benefit

 

 

2,686

 

 

 

4.9

%

 

 

1,351

 

 

 

4.1

%

Benefit of equity based compensation

 

 

(751

)

 

 

-1.4

%

 

 

(175

)

 

 

-0.5

%

Municipal interest income, net of interest disallowance

 

 

(408

)

 

 

-0.7

%

 

 

(742

)

 

 

-2.3

%

Bank owned life insurance

 

 

(25

)

 

 

0.0

%

 

 

(42

)

 

 

-0.1

%

Stock offering costs

 

 

141

 

 

 

0.3

%

 

 

 

 

 

0.0

%

Other

 

 

63

 

 

 

0.0

%

 

 

68

 

 

 

0.2

%

Income tax expense, as reported

 

$

13,276

 

 

 

24.1

%

 

$

11,999

 

 

 

36.4

%

 

The components of the net deferred tax liability at June 30, 2018 and December 31, 2017, are as follows:

 

 

 

June 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

6,865

 

 

$

6,264

 

Amortization of core deposit intangible

 

 

898

 

 

 

759

 

Deferred compensation

 

 

4,448

 

 

 

6,158

 

Unrealized loss on available-for-sale debt securities

 

 

4,563

 

 

 

988

 

Other

 

 

3,222

 

 

 

3,599

 

Subtotal

 

 

19,996

 

 

 

17,768

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

FHLB stock dividends

 

 

(550

)

 

 

(550

)

Depreciation

 

 

(4,322

)

 

 

(4,115

)

Cash flow hedges

 

 

(930

)

 

 

 

Mortgage servicing rights

 

 

(28,518

)

 

 

(19,830

)

Other

 

 

(5,969

)

 

 

(5,131

)

Subtotal

 

 

(40,289

)

 

 

(29,626

)

Net deferred tax liability

 

$

(20,293

)

 

$

(11,858

)

 

Tax periods for all fiscal years after 2013 remain open to examination by the federal and state taxing jurisdictions to which the Company is subject.

v3.10.0.1
Commitments and Contingencies
6 Months Ended
Jun. 30, 2018
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note (8)—Commitments and contingencies:

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates.

Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

 

 

 

June 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Commitments to extend credit, excluding interest rate lock commitments

 

$

1,088,486

 

 

$

977,276

 

Letters of credit

 

 

18,555

 

 

 

22,882

 

Balance at end of period

 

$

1,107,041

 

 

$

1,000,158

 

In connection with the sale of mortgage loans to third party investors, the Bank makes usual and customary representations and warranties as to the propriety of its origination activities. Occasionally, the investors require the Bank to repurchase loans sold to them under the terms of the warranties. When this happens, the loans are recorded at fair value with a corresponding charge to a valuation reserve. The total principal amount of loans repurchased (or indemnified for) was $1,543 and $921 and $2,662 and $1,770 for the three and six months ended June 30, 2018 and 2017, respectively. The Bank has established a reserve associated with loan repurchases. This reserve is recorded in accrued expenses and other liabilities on the consolidated balance sheet. The following table summarizes the activity in the repurchase reserve:

 

 

 

For the three months ended

 

 

For the six months ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Balance at beginning of period

 

$

3,514

 

 

$

2,842

 

 

$

3,386

 

 

$

2,659

 

Provision for loan repurchases or indemnifications

 

 

206

 

 

 

201

 

 

 

392

 

 

 

384

 

Losses on loans repurchased or indemnified

 

 

(74

)

 

 

(6

)

 

 

(132

)

 

 

(6

)

Balance at end of period

 

$

3,646

 

 

$

3,037

 

 

$

3,646

 

 

$

3,037

 

 

v3.10.0.1
Derivatives
6 Months Ended
Jun. 30, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivatives

Note (9)—Derivatives:

The Company utilizes derivative financial instruments as part of its ongoing efforts to manage its interest rate risk exposure as well as the exposure for its customers. Derivative financial instruments are included in the Consolidated Balance Sheets line item “Other assets” or “Other liabilities” at fair value in accordance with ASC 815, “Derivatives and Hedging.”

The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate-lock commitments). Under such commitments, interest rates for a mortgage loan are typically locked in for forty-five days with the customer. These interest rate lock commitments are recorded at fair value in the Company’s Consolidated Balance Sheets.  The Company also enters into best effort or mandatory delivery forward commitments to sell residential mortgage loans to secondary market investors. Gains and losses arising from changes in the valuation of the rate-lock commitments and forward commitments are recognized currently in earnings and are reflected under the line item “Mortgage banking income” on the Consolidated Statements of Income.

The Company enters into forward commitments, futures and options contracts that are not designated as hedging instruments as economic hedges of the change in the fair value of its MSRs. Gains and losses associated with these instruments are included in earnings and are reflected under the line item “Mortgage banking income” on the Consolidated Statements of Income.

The Company enters into derivative instruments that are not designated as hedging instruments to help its commercial customers manage their exposure to interest rate fluctuations. To mitigate the interest rate risk associated with customer contracts, the Company enters into an offsetting derivative contract. The Company manages its credit risk, or potential risk of default by its commercial customers through credit limit approval and monitoring procedures.

In June of 2017, the Company entered into two interest rate swap agreements with notional amounts totaling $30,000 to hedge interest rate exposure on outstanding subordinate debentures included in long-term debt totaling $30,930. Under these agreements, the Company receives a variable rate of interest and pays a fixed rate of interest. The interest rate swap contracts, which mature in June of 2024, are designated as cash flow hedges with the objective of reducing the variability in cash flows resulting from changes in interest rates. As of June 30, 2018 and December 31, 2017, the fair value of these contracts was $1,296 and $305, respectively.

In July of 2017, the Company entered into three interest rate swap contracts on floating rate liabilities at the Bank level with notional amounts of $30,000, $35,000 and $35,000 for a period of three, four and five years, respectively. These interest rate swaps were designated as cash flow hedges with the objective of reducing the variability of cash flows associated with $100,000 of FHLB borrowings obtained in conjunction with the Clayton Bank acquisition. Under these contracts, the Company receives a variable rate of interest and pays a fixed rate of interest. As of December 31, 2017, the fair value of these contracts was $1,127 included in those designated as hedging below. During the six months ended June 30, 2018, these swaps were cancelled, locking in a tax-adjusted gain of $1,564 in other comprehensive income to be accreted over the three, four and five-year terms of the underlying contracts. As of June 30, 2018, there was $1,559 remaining in other comprehensive income to be accreted into income.

Certain financial instruments, including derivatives, may be eligible for offset in the Consolidated Balance Sheet when the “right of setoff” exists or when the instruments are subject to an enforceable master netting agreement, which includes the right of the non-defaulting party or non-affected party to offset recognized amounts, including collateral posted with the counterparty, to determine a net receivable or net payable upon early termination of the agreement. Certain of the Company’s derivative instruments are subject to master netting agreements. The Company has not elected to offset such financial instruments in the Consolidated Balance Sheets.

Most derivative contracts with clients are secured by collateral. Additionally, in accordance with the interest rate agreements with derivatives dealers, the Company may be required to post margin to these counterparties. At June 30, 2018 and December 31, 2017, the Company had minimum collateral posting thresholds with certain of its derivative counterparties and posted collateral of $10,896 and $4,309, respectively, against its obligations under these agreements. Cash collateral related to derivative contracts is recorded in other assets in the consolidated balance sheets.

The following tables provide details on the Company’s derivative financial instruments as of the dates presented:

 

 

 

June 30, 2018

 

 

 

Notional Amount

 

 

Asset

 

 

Liability

 

Not designated as hedging:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

231,899

 

 

$

3,798

 

 

$

3,798

 

Forward commitments

 

 

717,330

 

 

 

 

 

 

1,682

 

Interest rate-lock commitments

 

 

597,569

 

 

 

9,495

 

 

 

 

Futures contracts

 

 

231,000

 

 

 

445

 

 

 

 

Option contracts

 

 

12,000

 

 

 

83

 

 

 

 

Total

 

$

1,789,798

 

 

$

13,821

 

 

$

5,480

 

 

 

 

December 31, 2017

 

 

 

Notional Amount

 

 

Asset

 

 

Liability

 

Not designated as hedging:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

146,754

 

 

$

1,146

 

 

$

1,146

 

Forward commitments

 

 

870,574

 

 

 

 

 

 

553

 

Interest rate-lock commitments

 

 

504,156

 

 

 

6,768

 

 

 

 

Futures contracts

 

 

283,000

 

 

 

315

 

 

 

 

Option contracts

 

 

6,000

 

 

 

29

 

 

 

 

Total

 

$

1,810,484

 

 

$

8,258

 

 

$

1,699

 

 

 

 

June 30, 2018

 

 

 

Notional Amount

 

 

Asset

 

 

Liability

 

Designated as hedging:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

30,000

 

 

$

1,296

 

 

$

 

Total

 

$

30,000

 

 

$

1,296

 

 

$

 

 

 

 

December 31, 2017

 

 

 

Notional Amount

 

 

Asset

 

 

Liability

 

Designated as hedging:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

130,000

 

 

$

1,432

 

 

$

 

Total

 

$

130,000

 

 

$

1,432

 

 

$

 

 

Gains (losses) included in the Consolidated Statements of Income related to the Company’s derivative financial instruments were as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Not designated as hedging instruments (included in mortgage banking income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 

$

(684

)

 

$

(1,433

)

 

$

2,727

 

 

$

1,509

 

Forward commitments

 

 

635

 

 

 

(3,928

)

 

 

5,953

 

 

 

(7,248

)

Futures contracts

 

 

(1,369

)

 

 

 

 

 

(3,816

)

 

 

 

Options contracts

 

 

(38

)

 

 

 

 

 

5

 

 

 

 

Total

 

$

(1,456

)

 

$

(5,361

)

 

$

4,869

 

 

$

(5,739

)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Designated as hedging:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount of gain (loss) reclassified from other comprehensive

  income and recognized in interest expense on long-term debt

 

$

25

 

 

 

 

 

$

(7

)

 

 

 

 

The following table discloses the amount included in other comprehensive income (loss), net of tax, for derivative instruments designated as cash flow hedges for the periods presented:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Designated as hedging:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount of gain recognized in other comprehensive

   income, net of tax

 

$

196

 

 

 

 

 

$

1,469

 

 

 

 

 

v3.10.0.1
Fair Value of Financial Instruments
6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Fair value of financial instruments

Note (10)—Fair value of financial instruments:

FASB ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 also establishes a framework for measuring the fair value of assets and liabilities according to a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that are derived from assumptions based on management’s estimate of assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances.

The hierarchy is broken down into the following three levels, based on the reliability of inputs:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs for assets or liabilities that are derived from assumptions based on management’s estimate of assumptions that market participants would use in pricing the assets or liabilities.    

The Company records the fair values of financial assets and liabilities on a recurring and non-recurring basis using the following methods and assumptions:

During the first quarter of 2018, the Company adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Liabilities.” The amendments included within this standard, which are applied prospectively, require the Company to disclose fair value of financial instruments measured at amortized cost on the balance sheet to measure the fair value using an exit price notion. Prior to adopting the amendments included in the standard, the Company measured fair value under an entry price notion.

Investment securities—Investment securities are recorded at fair value on a recurring basis. Fair values for securities are based on quoted market prices, where available. If quoted prices are not available, fair values are based on quoted market prices of similar instruments or are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the pricing relationship or correlation among other benchmark quoted securities. Investment securities valued using quoted market prices of similar instruments or that are valued using matrix pricing are classified as Level 2. When significant inputs to the valuation are unobservable, the available-for-sale securities are classified within Level 3 of the fair value hierarchy.

Where no active market exists for a security or other benchmark securities, fair value is estimated by the Company with reference to discount margins for other high risk securities.

Loans held for sale—Loans held for sale are carried at fair value. Fair value is determined using current secondary market prices for loans with similar characteristics, that is, using Level 2 inputs.

Derivatives—The fair value of the interest rate swaps are based upon fair values provided from entities that engage in interest rate swap activity and is based upon projected future cash flows and interest rates. Fair value of commitments is based on fees currently charged to enter into similar agreements, and for fixed-rate commitments, the difference between current levels of interest rates and the committed rates is also considered. These financial instruments are classified as Level 2.

Other real estate owned—Other real estate owned (“OREO”) is comprised of commercial and residential real estate obtained in partial or total satisfaction of loan obligations and excess land and facilities held for sale. OREO acquired in settlement of indebtedness is recorded at the lower of the carrying amount of the loan or the fair value of the real estate less costs to sell. Fair value is determined on a nonrecurring basis based on appraisals by qualified licensed appraisers and is adjusted for management’s estimates of costs to sell and holding period discounts. The valuations are classified as Level 3.

Mortgage servicing rights—Servicing rights are carried at fair value. Fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, prepayment speeds, servicing costs, and other factors. Mortgage servicing rights are disclosed as Level 3.

Impaired loans—Loans considered impaired under FASB ASC 310, Receivables, are loans for which, based on current information and events, it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Fair value adjustments for impaired loans are recorded on a non-recurring basis as either partial write downs based on observable market prices or current appraisal of the collateral. Impaired loans are classified as Level 3.

The following table contains the estimated fair values and the related carrying values of the Company's financial instruments. Items which are not financial instruments are not included. Due to the adoption of ASU 2016-01 as of January 1, 2018, the fair value as presented below is measured using the exit price notion in the periods after adoption and may not be comparable with prior periods presented as a result of the change in methodology.

 

 

 

 

 

 

 

Fair Value

 

June 30, 2018

 

Carrying amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

104,417

 

 

$

104,417

 

 

$

 

 

$

 

 

$

104,417

 

Investment securities

 

 

611,435

 

 

 

 

 

 

611,435

 

 

 

 

 

 

611,435

 

Federal Home Loan Bank Stock

 

 

12,641

 

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Loans, net

 

 

3,389,228

 

 

 

 

 

 

 

 

 

3,384,932

 

 

 

3,384,932

 

Loans held for sale

 

 

374,916

 

 

 

 

 

 

374,916

 

 

 

 

 

 

374,916

 

Interest receivable

 

 

12,729

 

 

 

 

 

 

12,729

 

 

 

 

 

 

12,729

 

Mortgage servicing rights

 

 

109,449

 

 

 

 

 

 

 

 

 

109,449

 

 

 

109,449

 

Derivatives

 

 

15,117

 

 

 

 

 

 

15,117

 

 

 

 

 

 

15,117

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Without stated maturities

 

$

3,179,754

 

 

$

3,179,754

 

 

$

 

 

$

 

 

$

3,179,754

 

With stated maturities

 

 

730,109

 

 

 

 

 

 

731,029

 

 

 

 

 

 

731,029

 

Securities sold under agreement to

   repurchase

 

 

15,996

 

 

 

15,996

 

 

 

 

 

 

 

 

 

15,996

 

Short term borrowings

 

 

187,522

 

 

 

187,522

 

 

 

 

 

 

 

 

 

187,522

 

Interest payable

 

 

2,180

 

 

 

631

 

 

 

1,549

 

 

 

 

 

 

2,180

 

Long-term debt

 

 

139,375

 

 

 

 

 

 

138,578

 

 

 

 

 

 

138,578

 

Derivatives

 

 

5,480

 

 

 

 

 

 

5,480

 

 

 

 

 

 

5,480

 

 

 

 

 

 

 

 

 

Fair Value

 

December 31, 2017

 

Carrying amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

119,751

 

 

$

119,751

 

 

$

 

 

$

 

 

$

119,751

 

Investment securities

 

 

543,992

 

 

 

 

 

 

540,388

 

 

 

3,604

 

 

 

543,992

 

Federal Home Loan Bank Stock

 

 

11,412

 

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Loans, net

 

 

3,142,870

 

 

 

 

 

 

3,064,373

 

 

 

77,027

 

 

 

3,141,400

 

Loans held for sale

 

 

526,185

 

 

 

 

 

 

526,185

 

 

 

 

 

 

526,185

 

Interest receivable

 

 

13,069

 

 

 

 

 

 

13,069

 

 

 

 

 

 

13,069

 

Mortgage servicing rights, net

 

 

76,107

 

 

 

 

 

 

 

 

 

76,107

 

 

 

76,107

 

Derivatives

 

 

9,690

 

 

 

 

 

 

9,690

 

 

 

 

 

 

9,690

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Without stated maturities

 

$

2,976,066

 

 

$

2,976,066

 

 

$

 

 

$

 

 

$

2,976,066

 

With stated maturities

 

 

688,329

 

 

 

 

 

 

682,403

 

 

 

 

 

 

682,403

 

Securities sold under agreement to

   repurchase

 

 

14,293

 

 

 

14,293

 

 

 

 

 

 

 

 

 

14,293

 

Short term borrowings

 

 

190,000

 

 

 

190,000

 

 

 

 

 

 

 

 

 

190,000

 

Interest payable

 

 

1,504

 

 

 

575

 

 

 

929

 

 

 

 

 

 

1,504

 

Long-term debt

 

 

143,302

 

 

 

 

 

 

149,135

 

 

 

 

 

 

149,135

 

Derivatives

 

 

1,699

 

 

 

 

 

 

1,699

 

 

 

 

 

 

1,699

 

The balances and levels of the assets measured at fair value on a recurring basis at June 30, 2018 are presented in the following tables:

 

At June 30, 2018

 

Quoted prices

in active

markets for

identical assets

(liabilities)

(level 1)

 

 

Significant

other

observable

inputs

(level 2)

 

 

Significant unobservable

inputs

(level 3)

 

 

Total

 

Recurring valuations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency securities

 

$

 

 

$

983

 

 

$

 

 

$

983

 

Mortgage-backed securities

 

 

 

 

 

477,974

 

 

 

 

 

 

477,974

 

Municipals, tax-exempt

 

 

 

 

 

122,247

 

 

 

 

 

 

122,247

 

Treasury securities

 

 

 

 

 

7,156

 

 

 

 

 

 

7,156

 

Equity securities

 

 

 

 

 

3,075

 

 

 

 

 

 

3,075

 

Total

 

$

 

 

$

611,435

 

 

$

 

 

$

611,435

 

Loans held for sale

 

 

 

 

 

374,916

 

 

 

 

 

 

374,916

 

Mortgage servicing rights

 

 

 

 

 

 

 

 

109,449

 

 

 

109,449

 

Derivatives

 

 

 

 

 

15,117

 

 

 

 

 

 

15,117

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives

 

$

 

 

$

5,480

 

 

$

 

 

$

5,480

 

 

The balances and levels of the assets measured at fair value on a non-recurring basis at June 30, 2018 are presented in the following tables:

 

At June 30, 2018

 

Quoted prices

in active

markets for

identical assets

(liabilities)

(level 1)

 

 

Significant

other

observable

inputs

(level 2)

 

 

Significant unobservable

inputs

(level 3)

 

 

Total

 

Non-recurring valuations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned

 

$

 

 

$

 

 

$

798

 

 

$

798

 

Impaired loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

 

 

 

 

 

 

107

 

 

 

107

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family mortgage

 

 

 

 

 

 

 

 

144

 

 

 

144

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

 

 

 

 

 

 

180

 

 

 

180

 

Non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

Consumer and other

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

 

 

$

 

 

$

431

 

 

$

431

 

 

The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2017 are presented in the following tables:

 

At December 31, 2017

 

Quoted prices

in active

markets for

identical assets

(liabilities)

(level 1)

 

 

Significant

other

observable

inputs

(level 2)

 

 

Significant unobservable

inputs

(level 3)

 

 

Total

 

Recurring valuations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency securities

 

$

 

 

$

986

 

 

$

 

 

$

986

 

Mortgage-backed securities

 

 

 

 

 

418,781

 

 

 

 

 

 

418,781

 

Municipals, tax-exempt

 

 

 

 

 

109,251

 

 

 

 

 

 

109,251

 

Treasury securities

 

 

 

 

 

7,252

 

 

 

 

 

 

7,252

 

Equity securities

 

 

 

 

 

4,118

 

 

 

3,604

 

 

 

7,722

 

Total

 

$

 

 

$

540,388

 

 

$

3,604

 

 

$

543,992

 

Loans held for sale

 

 

 

 

 

526,185

 

 

 

 

 

 

526,185

 

Mortgage servicing rights

 

 

 

 

 

 

 

 

76,107

 

 

 

76,107

 

Derivatives

 

 

 

 

 

9,690

 

 

 

 

 

 

9,690

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives

 

$

 

 

$

1,699

 

 

$

 

 

$

1,699

 

 

The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2017 are presented in the following tables:

 

At December 31, 2017

 

Quoted prices

in active

markets for

identical assets

(liabilities)

(level 1)

 

 

Significant

other observable inputs

(level 2)

 

 

Significant unobservable

inputs

(level 3)

 

 

Total

 

Non-recurring valuations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned

 

$

 

 

$

 

 

$

13,174

 

 

$

13,174

 

Impaired Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

 

 

 

 

 

 

1,971

 

 

 

1,971

 

Construction

 

 

 

 

 

 

 

 

4,211

 

 

 

4,211

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family mortgage

 

 

 

 

 

 

 

 

21,902

 

 

 

21,902

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

 

 

 

 

 

 

10,030

 

 

 

10,030

 

Non-owner occupied

 

 

 

 

 

 

 

 

13,593

 

 

 

13,593

 

Consumer and other

 

 

 

 

 

 

 

 

25,320

 

 

 

25,320

 

Total

 

$

 

 

$

 

 

$

77,027

 

 

$

77,027

 

 

There were no transfers between Level 1, 2 or 3 during the periods presented.

The following table summarizes changes in fair value on available-for-sale securities measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, during the three and six months ended June 30, 2018 and 2017.

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

securities

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Balance at beginning of period

 

$

 

 

$

4,549

 

 

$

3,604

 

 

$

4,549

 

Reclassification of equity securities without a readily determinable fair value to other assets(1)

 

 

 

 

 

 

 

 

(3,604

)

 

 

 

Balance at end of period

 

$

 

 

$

4,549

 

 

$

 

 

$

4,549

 

(1)

See Note 1, “Basis of Presentation” in the Notes to the consolidated financial statements for additional details regarding the adoption of ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities.

 

As of December 31, 2017, there was no established market for certain other securities, and as such, the Company had estimated that historical costs approximated market value. As of January 1, 2018, the Company adopted ASU 2016-01 (See Note 1) and reclassified $3,604 of these other securities without readily determinable market values to other assets.

The following table presents information as of June 30, 2018 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis:

 

Financial instrument

 

Fair Value

 

 

Valuation technique

 

Significant Unobservable inputs

 

Range of

inputs

Impaired loans

 

$

431

 

 

Valuation of collateral

 

Discount for comparable sales

 

0%-30%

Other real estate owned

 

$

798

 

 

Appraised value of property less costs to sell

 

Discount for costs to sell

 

0%-15%

 

The following table presents information as of December 31, 2017 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis:

 

Financial instrument

 

Fair Value

 

 

Valuation technique

 

Significant Unobservable inputs

 

Range of

inputs

Impaired loans

 

$

77,027

 

 

Valuation of collateral

 

Discount for comparable sales

 

0%-30%

Other real estate owned

 

$

13,174

 

 

Appraised value of property less costs to sell

 

Discount for costs to sell

 

0%-15%

 

Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the lending administrative department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry wide statistics.

Fair value option:

The Company elected to measure all loans originated for sale at fair value under the fair value option as permitted under ASC 825. Electing to measure these assets at fair value reduces certain timing differences and better matches the changes in fair value of the loans with changes in the fair value of derivative instruments used to economically hedge them.

Net gains of $2,076 and $4,197 and $1,864 and $9,470 and resulting from fair value changes of the mortgage loans were recorded in income during the three and six months ended June 30, 2018 and 2017, respectively. The amount does not reflect changes in fair values of related derivative instruments used to hedge exposure to market-related risks associated with these mortgage loans. The change in fair value of both loans held for sale and the related derivative instruments are recorded in Mortgage Banking Income in the Consolidated Statements of Income. Election of the fair value option allows the Company to reduce the accounting volatility that would otherwise result from the asymmetry created by accounting for the financial instruments at the lower of cost or fair value and the derivatives at fair value. The fair value option election does not apply to the GNMA optional repurchase loans recorded as of December 31, 2017 which do not meet the requirements under FASB ASC Topic 825 to be accounted for under the fair value option. At June 30, 2018, there were $52,212 of delinquent GNMA loans that had previously been sold. The Company determined there not to be a more-than-trivial benefit based on an analysis of interest rates and an assessment of potential reputational risk associated with these loans. As such, the Company had $0 in rebooked GNMA loans included in loans held for sale as of June 30, 2018. GNMA optional repurchase loans totaled $43,035 at December 31, 2017 and are included in loans held for sale on the accompanying Consolidated Balance Sheet. See Note 1, “Basis of presentation” in the Notes to the consolidated financial statements for additional details regarding rebooked GNMA loans.

The Company’s valuation of loans held for sale incorporates an assumption for credit risk; however, given the short-term period that the Company holds these loans, valuation adjustments attributable to instrument-specific credit risk is nominal. Interest income on loans held for sale measured at fair value is accrued as it is earned based on contractual rates and is reflected in loan interest income in the Consolidated Statements of Income.

The following table summarizes the differences between the fair value and the principal balance for loans held for sale measured at fair value as of June 30, 2018 and December 31, 2017:

 

June 30, 2018

 

Aggregate

fair value

 

 

Aggregate

Unpaid

Principal

Balance

 

 

Difference

 

Mortgage loans held for sale measured at fair value

 

$

374,916

 

 

$

364,063

 

 

$

10,853

 

Past due loans of 90 days or more

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans held for sale measured at fair value

 

$

482,089

 

 

$

467,039

 

 

$

15,050

 

Past due loans of 90 days or more

 

 

320

 

 

 

320

 

 

 

 

Nonaccrual loans

 

 

741

 

 

 

741

 

 

 

 

 

v3.10.0.1
Segment Reporting
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segment Reporting

Note (11)—Segment reporting:

The Company and the Bank are engaged in the business of banking and provide a full range of financial services. The Company determines reportable segments based on the significance of the segment’s operating results to the overall Company, the products and services offered, customer characteristics, processes and service delivery of the segments and the regular financial performance review and allocation of resources by the Chief Executive Officer (“CEO”), the Company’s chief operating decision maker. The Company has identified two distinct reportable segments—Banking and Mortgage. The Company’s primary segment is Banking, which provides a full range of deposit and lending products and services to corporate, commercial and consumer customers. The Company offers full-service conforming residential mortgage products, including conforming residential loans and services through the Mortgage segment utilizing mortgage offices outside of the geographic footprint of the Banking operations as well as internet and correspondent delivery channels. Additionally, the Mortgage Segment includes the servicing of residential retail mortgage loans and the packaging and securitization of loans to governmental agencies. The residential mortgage products and services originated in our Banking footprint and related revenues and expenses are included in our Banking segment. The Company’s mortgage division represents a distinct reportable segment which differs from the Company’s primary business of commercial and retail banking.

The financial performance of the Mortgage segment is assessed based on results of operations reflecting direct revenues and expenses and allocated expenses. This approach gives management a better indication of the operating performance of the segment. When assessing the Banking segment’s financial performance, the CEO utilizes reports with indirect revenues and expenses including but not limited to the investment portfolio, electronic delivery channels and areas that primarily support the banking segment operations.  Therefore, these are included in the results of the Banking segment. Other indirect revenue and expenses related to general administrative areas are also included in the internal financial results reports of the Banking segment utilized by the CEO for analysis and are thus included for Banking segment reporting. The Mortgage segment utilizes funding sources from the Banking segment in order to fund mortgage loans that are ultimately sold on the secondary market. The Mortgage segment uses the proceeds from loan sales to repay obligations due to the Banking segment.

The following tables provides segment financial information for the three and six months ended June 30, 2018 and 2017 follows:

 

Three Months Ended June 30, 2018

 

 

Banking

 

 

Mortgage

 

 

Consolidated

 

Net interest income

 

$

51,669

 

 

$

(152

)

 

$

51,517

 

Provision for loan loss

 

 

1,063

 

 

 

 

 

 

1,063

 

Mortgage banking income

 

 

6,894

 

 

 

23,428

 

 

 

30,322

 

Change in fair value of mortgage servicing rights(1)

 

 

 

 

 

(1,778

)

 

 

(1,778

)

Other noninterest income

 

 

7,164

 

 

 

 

 

 

7,164

 

Depreciation

 

 

990

 

 

 

142

 

 

 

1,132

 

Amortization of intangibles

 

 

802

 

 

 

 

 

 

802

 

Other noninterest mortgage banking expense

 

 

5,649

 

 

 

19,440

 

 

 

25,089

 

Other noninterest expense

 

 

29,280

 

 

 

 

 

 

29,280

 

Income before income taxes

 

 

27,943

 

 

 

1,916

 

 

 

29,859

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

7,794

 

Net income

 

 

 

 

 

 

 

 

 

 

22,065

 

Total assets

 

$

4,443,469

 

 

$

479,780

 

 

$

4,923,249

 

Goodwill

 

 

137,090

 

 

 

100

 

 

 

137,190

 

 

(1)Included in mortgage banking income, net of hedging gains/losses, on the Consolidated Unaudited Statements of Income.

 

 

Three Months Ended June 30, 2017

 

 

Banking

 

 

Mortgage

 

 

Consolidated

 

Net interest income

 

$

29,999

 

 

$

428

 

 

$

30,427

 

Provision for loan loss

 

 

(865

)

 

 

 

 

 

(865

)

Mortgage banking income

 

 

7,118

 

 

 

24,961

 

 

 

32,079

 

Change in fair value of mortgage servicing rights(1)

 

 

 

 

 

(1,840

)

 

 

(1,840

)

Other noninterest income

 

 

5,418

 

 

 

 

 

 

5,418

 

Depreciation

 

 

861

 

 

 

130

 

 

 

991

 

Amortization of intangibles

 

 

123

 

 

 

 

 

 

123

 

Loss on sale of mortgage servicing rights

 

 

 

 

 

249

 

 

 

249

 

Other noninterest mortgage banking expense

 

 

5,368

 

 

 

19,423

 

 

 

24,791

 

Other noninterest expense(2)

 

 

22,982

 

 

 

 

 

 

22,982

 

Income before income taxes

 

 

14,066

 

 

 

3,747

 

 

 

17,813

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

6,574

 

Net income

 

 

 

 

 

 

 

 

 

 

11,239

 

Total assets

 

$

2,878,437

 

 

$

468,133

 

 

$

3,346,570

 

Goodwill

 

 

46,767

 

 

 

100

 

 

 

46,867

 

(1)

Included in mortgage banking income on the Consolidated Unaudited Statements of Income.

(2)

Included $767 in merger and conversion expenses related to the merger with the Clayton Banks.

 

Six Months Ended June 30, 2018

 

 

Banking

 

 

Mortgage

 

 

Consolidated

 

Net interest income

 

$

100,440

 

 

$

(494

)

 

$

99,946

 

Provision for loan loss

 

 

1,380

 

 

 

 

 

 

1,380

 

Mortgage banking income

 

 

13,002

 

 

 

45,504

 

 

 

58,506

 

Net, change in fair value of mortgage servicing rights(1)

 

 

 

 

 

(3,491

)

 

 

(3,491

)

Other noninterest income

 

 

13,968

 

 

 

 

 

 

13,968

 

Depreciation

 

 

1,968

 

 

 

270

 

 

 

2,238

 

Amortization of intangibles

 

 

1,655

 

 

 

 

 

 

1,655

 

Other noninterest mortgage banking expense

 

 

10,746

 

 

 

38,222

 

 

 

48,968

 

Other noninterest expense(2)

 

 

59,593

 

 

 

 

 

 

59,593

 

Income before income taxes

 

 

52,068

 

 

 

3,027

 

 

 

55,095

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

13,276

 

Net income

 

 

 

 

 

 

 

 

 

 

41,819

 

Total assets

 

$

4,443,469

 

 

$

479,780

 

 

$

4,923,249

 

Goodwill

 

 

137,090

 

 

 

100

 

 

 

137,190

 

 

(1)

Included in mortgage banking income on the Consolidated Unaudited Statements of Income.

(2)

Included $1,193 in merger and conversion expenses related to the merger with the Clayton Banks.

 

 

Six Months Ended June 30, 2017

 

 

Banking

 

 

Mortgage

 

 

Consolidated

 

Net interest income

 

$

59,855

 

 

$

823

 

 

$

60,678

 

Provision for loan loss

 

 

(1,122

)

 

 

 

 

 

(1,122

)

Mortgage banking income

 

 

12,784

 

 

 

44,876

 

 

 

57,660

 

Net, change in fair value of mortgage servicing rights(1)

 

 

 

 

 

(2,341

)

 

 

(2,341

)

Other noninterest income

 

 

11,425

 

 

 

 

 

 

11,425

 

Depreciation and amortization

 

 

1,725

 

 

 

268

 

 

 

1,993

 

Amortization of intangibles

 

 

515

 

 

 

 

 

 

515

 

Loss on sale of mortgage servicing rights

 

 

 

 

 

249

 

 

 

249

 

Other noninterest mortgage banking expense

 

 

10,204

 

 

 

36,955

 

 

 

47,159

 

Other noninterest expense(2)

 

 

45,637

 

 

 

 

 

 

45,637

 

Income before income taxes

 

 

27,105

 

 

 

5,886

 

 

 

32,991

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

11,999

 

Net income

 

 

 

 

 

 

 

 

 

 

20,992

 

Total assets

 

$

2,878,437

 

 

$

468,133

 

 

$

3,346,570

 

Goodwill

 

 

46,767

 

 

 

100

 

 

 

46,867

 

(1)

Included in mortgage banking income, net of hedging gains/losses, on the Consolidated Unaudited Statements of Income.

(2)

Included $1,254 in merger and conversion expenses related to the merger with the Clayton Banks.

 

 

Our Banking segment provides our Mortgage segment with an intercompany warehouse line of credit that is used to fund mortgage loans held for sale. The warehouse line of credit, which eliminated in consolidation, had a prime interest rate of 5.00% and 4.25% as of June 30, 2018 and 2017, respectively. The amount of interest paid by our Mortgage segment to our Banking segment under this warehouse line of credit is recorded as interest income to our Banking segment and as interest expense to our Mortgage segment, both of which are included in the calculation of net interest income for each segment. The amount of interest paid by our Mortgage segment to our Banking segment under this warehouse line of credit was $4,517 and $3,831 and $9,025 and $7,382 for the three and six months ended June 30, 2018 and 2017, respectively.

 

For more information regarding the Company’s segment reporting, see “Business segment highlights” and Note 21 “Segment reporting” in the notes to the consolidated financial statements in the Company’s Form 10-K filed with SEC on March 16, 2018.

 

v3.10.0.1
Minimum Capital Requirements
6 Months Ended
Jun. 30, 2018
Banking And Thrift [Abstract]  
Minimum capital requirements

Note (12)—Minimum capital requirements:

Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action.

Under regulatory guidance for non-advanced approaches institutions, the Bank is required to maintain minimum amounts and ratios of common equity Tier I capital to risk-weighted assets. Additionally, under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. As of June 30, 2018 and December 31, 2017, the Bank and Company met all capital adequacy requirements to which it is subject. Also, as of June 30, 2018, the most recent notification from the Federal Deposit Insurance Corporation (“FDIC”), the Bank was well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category.

 

Beginning in 2016, an additional conservation buffer was added to the minimum requirements for capital adequacy purposes, subject to a three year phase-in period. As of June 30, 2018 and December 31, 2017, the buffer was 1.75 percent and 1.25 percent, respectively. The capital conservative buffer will be fully phased in January 1, 2019 at 2.5 percent.

Actual and required capital amounts and ratios are presented below at period-end:

 

 

 

Actual

 

 

For capital adequacy purposes

 

 

Minimum Capital

adequacy with

capital buffer

 

 

To be well capitalized

under prompt corrective

action provisions

 

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

524,655

 

 

 

11.9

%

 

$

352,709

 

 

 

8.0

%

 

$

435,375

 

 

 

9.9

%

 

N/A

 

 

N/A

 

FirstBank

 

 

497,123

 

 

 

11.3

%

 

 

351,945

 

 

 

8.0

%

 

 

434,433

 

 

 

9.9

%

 

$

439,932

 

 

 

10.0

%

Tier 1 Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

498,308

 

 

 

11.3

%

 

$

264,588

 

 

 

6.0

%

 

$

347,272

 

 

 

7.9

%

 

N/A

 

 

N/A

 

FirstBank

 

 

470,776

 

 

 

10.7

%

 

 

263,987

 

 

 

6.0

%

 

 

346,482

 

 

 

7.9

%

 

$

263,987

 

 

 

6.0

%

Tier 1 Capital (to average assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

498,308

 

 

 

10.9

%

 

$

182,865

 

 

 

4.0

%

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

FirstBank

 

 

470,776

 

 

 

10.2

%

 

 

184,618

 

 

 

4.0

%

 

N/A

 

 

N/A

 

 

$

230,773

 

 

 

5.0

%

Common Equity Tier 1 Capital

   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

468,308

 

 

 

10.6

%

 

$

198,810

 

 

 

4.5

%

 

$

281,648

 

 

 

6.4

%

 

N/A

 

 

N/A

 

FirstBank

 

 

470,776

 

 

 

10.7

%

 

 

197,990

 

 

 

4.5

%

 

 

280,486

 

 

 

6.4

%

 

$

285,985

 

 

 

6.5

%

 

 

 

Actual

 

 

For capital adequacy purposes

 

 

Minimum Capital

adequacy with

capital buffer

 

 

To be well capitalized

under prompt corrective

action provisions

 

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

496,422

 

 

 

12.0

%

 

$

330,672

 

 

 

8.0

%

 

$

382,340

 

 

 

9.3

%

 

N/A

 

 

N/A

 

FirstBank

 

 

466,102

 

 

 

11.3

%

 

 

329,984

 

 

 

8.0

%

 

 

381,544

 

 

 

9.3

%

 

$

412,480

 

 

 

10.0

%

Tier 1 Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

472,381

 

 

 

11.4

%

 

$

247,969

 

 

 

6.0

%

 

$

299,629

 

 

 

7.3

%

 

N/A

 

 

N/A

 

FirstBank

 

 

442,061

 

 

 

10.7

%

 

 

247,422

 

 

 

6.0

%

 

 

298,968

 

 

 

7.3

%

 

$

247,422

 

 

 

6.0

%

Tier 1 Capital (to average assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

472,381

 

 

 

10.5

%

 

$

180,643

 

 

 

4.0

%

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

FirstBank

 

 

442,061

 

 

 

9.8

%

 

 

180,987

 

 

 

4.0

%

 

N/A

 

 

N/A

 

 

$

226,234

 

 

 

5.0

%

Common Equity Tier 1 Capital

   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

442,381

 

 

 

10.7

%

 

$

185,874

 

 

 

4.5

%

 

$

237,506

 

 

 

5.8

%

 

N/A

 

 

N/A

 

FirstBank

 

 

442,061

 

 

 

10.7

%

 

 

185,567

 

 

 

4.5

%

 

 

237,113

 

 

 

5.8

%

 

$

268,041

 

 

 

6.5

%

 

v3.10.0.1
Stock-Based Compensation
6 Months Ended
Jun. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

Note (13)—Stock-Based Compensation:

The Company granted shares of common stock and restricted stock units as a part of its initial public offering and compensation arrangements for the benefit of employees, executive officers, and directors. Restricted stock unit grants are subject to time-based vesting. The total number of restricted stock units granted represents the maximum number of restricted stock units eligible to vest based upon the service conditions set forth in the grant agreements.

Following the initial public offering, participants in the EBI Plans were given the option to elect conversion of their outstanding cash-settled EBI Units to stock-settled EBI Units. At June 30, 2018 and December 31, 2017, there were 29,172 and 67,470 units valued at $1,188 and $2,833, respectively, outstanding under the equity based incentive plans for employees who elected cash settlement of EBI units. Expense related to the cash settled EBI was $102 and $219 for the three and six months ended June 30, 2018, respectively, and $184 and $482 for the three and six months ended June 30, 2017, respectively.

The following table summarizes information about vested and unvested restricted stock units, excluding cash-settled EBI units discussed above, outstanding at June 30, 2018 and 2017:

 

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

 

Restricted Stock

Units

Outstanding

 

 

Weighted

Average Grant

Date

Fair Value

 

 

Restricted Stock

Units

Outstanding

 

Weighted

Average Grant

Date

Fair Value

 

Balance at beginning of period (unvested)

 

 

1,214,325

 

 

$

19.97

 

 

 

1,200,848

 

$

19.00

 

Grants

 

 

110,466

 

 

 

40.02

 

 

 

97,893

 

 

33.88

 

Released and distributed (vested)

 

 

(181,903

)

 

 

22.09

 

 

 

(70,819

)

 

19.00

 

Forfeited/expired

 

 

(7,060

)

 

 

21.81

 

 

 

(1,021

)

 

19.00

 

Balance at end of period (unvested)

 

 

1,135,828

 

 

$

21.59

 

 

 

1,226,901

 

$

19.67

 

 

The total fair value of restricted stock units vested and released, excluding cash-settled EBI units discussed above, was $404 and $4,018 for the three and six months ended June 30, 2018, respectively, and $3 and $1,346 for the three and six months ended June 30, 2017, respectively.

The compensation cost related to stock grants and vesting of restricted stock units, excluding cash-settled EBI units discussed above, was $1,861 and $3,819 for the three and six months ended June 30, 2018, respectively, and $1,802 and $3,154 for the three and six months ended June 30, 2017, respectively. The current period included a one-time expense of $249 related to the modification of vesting terms of certain grants during the six months ended June 30, 2018.

As of June 30, 2018 and December 31, 2017, there were $14,061 and $12,950, respectively, of total unrecognized compensation cost related to nonvested restricted stock units (excluding cash-settled EBI units discussed above) which is expected to be recognized over a weighted-average period of 2.78 years and 2.80 years, respectively. At June 30, 2018, there was $70 accrued in other liabilities related to dividends declared to be paid upon vesting and distribution of the underlying RSUs.

Employee Stock Purchase Plan:

In 2016, the Company adopted an employee stock purchase plan (“ESPP”) under which employees, through payroll deductions, are able to purchase shares of Company common stock. The purchase price is 95% of the lower of the market price on the first or last day of the offering period. The maximum number of shares issuable during any offering period is 200,000 shares, and a participant may not purchase more than 725 shares during any offering period (and, in any event, no more than $25,000 worth of common stock in any calendar year). There were 0 and 16,537 shares issued under the ESPP during the three and six months ended June 30, 2018, respectively. There were no such issuances during the three or six months ended June 30, 2017. As of June 30, 2018 and December 31, 2017, there were 2,444,428 shares and 2,460,965 shares, respectively, available for issuance under the ESPP.

 

v3.10.0.1
Related party transactions
6 Months Ended
Jun. 30, 2018
Related Party Transactions [Abstract]  
Related party transactions

Note (14)—Related party transactions:

(A) Loans:

The Bank has made and expects to continue to make loans to the directors, certain management and executive officers of the Company and their affiliates in the ordinary course of business.

An analysis of loans to executive officers, certain management, and directors of the Bank and their affiliates follows:

 

Loans outstanding at January 1, 2018

 

$

21,012

 

New loans and advances

 

 

1,611

 

Repayments

 

 

(4,657

)

Loans outstanding at June 30, 2018

 

$

17,966

 

 

Unfunded commitments to certain executive officers and directors and their associates totaled $10,189 and $4,672 at June 30, 2018 and December 31, 2017, respectively.

(B) Deposits:

The Bank held deposits from related parties totaling $238,891 and $110,465 as of June 30, 2018 and December 31, 2017, respectively.

(C) Leases:

The Bank leases various office spaces from entities under operating leases related to the former majority shareholder and his son, who is also a Director of the Company, under varying terms. The Company had $126 and $137 in unamortized leasehold improvements related to these leases at June 30, 2018 and December 31, 2017, respectively. These improvements are being amortized over a term not to exceed the length of the lease. Lease expense for these properties totaled $111 and $259 for the three and six months ended June 30, 2018, respectively, and $124 and $250 for the three and six months ended June 30, 2017, respectively.

(D) Other Investments:

The Company holds an investment in a fund that was issued by an entity owned by one of its directors. The balance of this included in other assets was $127 and $200 as of June 30, 2018 and December 31, 2017, respectively.

(E) Aviation time sharing agreement:

The Company has an aviation time sharing agreement with an entity owned by the Company’s Board of director chairman and his son, who is also a Director of the Company. This replaces the previous agreement dated December 21, 2012. The Company made payments of $53 and $125 during the three and six months ended June 30, 2018, respectively, and $2 and $27 during the three and six months ended June 30, 2017, respectively, under these agreements.

(F) Registration rights agreement:

The Company is party to a registration rights agreement with its former majority shareholder entered into in connection with the 2016 IPO, under which the Company is responsible for payment of expenses (other than underwriting discounts and commissions) relating to sales to the public by the shareholder of shares of the Company’s common stock beneficially owned by him. Such expenses include registration fees, legal and accounting fees, and printing costs payable by the Company and expensed when incurred. During the second quarter of 2018, the Company paid $0.7 million under this agreement.

v3.10.0.1
Basis of presentation (Policies)
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Subsequent Events

Subsequent events

The Company has evaluated, for consideration of recognition or disclosure, subsequent events that occurred through the date of issuance of these financial statements. The Company has determined that there were no other subsequent events other than described below that occurred after June 30, 2018, but prior to the issuance of these financial statements that would have a material impact on the Company’s consolidated financial statements.

On July 19, 2018, the Company declared a regular quarterly dividend of $0.06 per share to be paid on August 15, 2018 to shareholders of record as of July 31, 2018, totaling approximately $1,909.

On August 7, 2018, the Federal Home Loan Bank of Cincinnati increased the capacity on the Company’s line of credit from $300,000 to $800,000.

Earnings Per Share

Earnings per share

Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS includes the dilutive effect of additional potential common shares issuable under the restricted stock units granted but not yet vested and distributable. Diluted EPS is computed by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method.

Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common shareholders in undistributed earnings for purposes of computing EPS. Companies that have such participating securities, including FB Financial, are required to calculate basic and diluted EPS using the two-class method. Certain restricted stock awards granted by the Company include non-forfeitable dividend equivalents and are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities.

The following is a summary of the basic and diluted earnings per common share calculation for each of the periods presented:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Basic earnings per share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

22,065

 

 

$

11,239

 

 

$

41,819

 

 

$

20,992

 

Dividends paid on and undistributed earnings allocated to

     participating securities

 

 

(117

)

 

 

 

 

 

(223

)

 

 

 

Earnings attributable to common shareholders

 

$

21,948

 

 

$

11,239

 

 

$

41,596

 

 

$

20,992

 

Weighted-average basic shares outstanding

 

 

30,678,732

 

 

 

25,741,968

 

 

 

30,646,189

 

 

 

24,944,633

 

Basic earnings per share

 

$

0.72

 

 

$

0.44

 

 

$

1.36

 

 

$

0.84

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings attributable to common shareholders

 

$

21,948

 

 

$

11,239

 

 

$

41,596

 

 

$

20,992

 

Weighted-average basic shares outstanding

 

 

30,678,732

 

 

 

25,741,968

 

 

 

30,646,189

 

 

 

24,944,633

 

Weighted-average diluted shares contingently issuable

 

 

615,312

 

 

 

559,490

 

 

 

629,657

 

 

 

505,786

 

Weighted-average diluted shares outstanding

 

 

31,294,044

 

 

 

26,301,458

 

 

 

31,275,846

 

 

 

25,450,419

 

Diluted earnings per share

 

$

0.70

 

 

$

0.43

 

 

$

1.33

 

 

$

0.82

 

 

Recently Adopted Accounting Principles

Recently adopted accounting principles:

Except as set forth below, the Company did not adopt any new accounting policies that were not disclosed in the Company’s 2017 audited consolidated financial statements included on Form 10-K.

On January 1, 2018, the Company adopted the following newly issued accounting standards:

In May 2014, the FASB issued an update to Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”. The Company adopted this guidance on January 1, 2018 and all subsequent amendments to the ASU (collectively, “ASC 606”) which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO.  The majority of the Company’s revenues come from interest income and other sources, including loans, leases, securities and derivatives that are outside the scope of ASC 606.  The Company’s services that fall within the scope of ASC 606 are presented within Noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer.  Services within the scope of ASC 606 include deposit service charges on deposits, interchange income, investment services and trust income, and the sale of OREO, all within the Banking Segment.  The Company has evaluated the effect of this updated on these fee-based income streams and concluded that adoption did not result in a change to the accounting for any of the in-scope revenue streams; as such, no cumulative effect adjustment was recorded.

The following is a summary of the implementation considerations for the revenue streams that fall within the scope of Topic 606:

 

Service charges on deposits, investment services and trust income, and interchange fees — Fees from these services are either transaction based, for which the performance obligations are satisfied when the individual transaction is processed, or set periodic service charges, for which the performance obligations are satisfied over the period the service is provided. Transaction based fees are recognized at the time the transaction is processed, and periodic service charges are recognized over the service period. The adoption of Topic 606 had no impact on the Company's revenue recognition practice for these services.

 

Gains on sales of other real estate — ASU 2014-09 creates Topic 610-20, under which a gain on sale should be recognized when a contract for sale exists and control of the asset has been transferred to the buyer. Topic 606 list several criteria which must exist to conclude that a contract for sale exists, including a determination that the institution will collect substantially all of the consideration to which it is entitled. This presents a key difference between the current and new guidance related to the recognition of the gain when the institution finances the sale of the property. Rather than basing recognition on the amount of the buyer's initial investment, which was the primary consideration under prior guidance, the analysis is now based on various factors including not only the loan to value, but also the credit quality of the borrower, the structure of the loan, and any other factors that may affect collectability. While these differences may affect the decision to recognize or defer gains on sales of other real estate in circumstances where the Company has financed the sale, these amounts have not been material to its financial statements.

In January 2016, the FASB released ASU 2016-01, “Recognition and Measurement of Financial Assets and Liabilities.” The main provisions of the update are to eliminate the available for sale classification of accounting for equity securities and adjust the fair value disclosures for financial instruments carried at amortized cost such that the disclosed fair values represent an exit price as opposed to an entry price. The provisions of this update will require that equity securities be carried at fair market value on the balance sheet and any periodic changes in value will be adjustments to the income statement. A practical expedient is provided for equity securities without a readily determinable fair value such that these securities can be carried at cost less any impairment. Results for reporting periods beginning after January 1, 2018 are presented under this method while prior period disclosures are presented under legacy GAAP. On January 1, 2018, the Company recorded a net loss in beginning retained earnings of $109 in connection with this transition.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments (Topic 230).” ASU 2016-15 provides guidance related to certain cash flow issues in order to reduce the current and potential future diversity in practice. This adoption did not have an impact on our financial statements.

In May 2017, the FASB issued ASU 2017-09, “Stock Compensation - Scope of Modification Accounting (Topic 718): Scope of Modification Accounting.” The amendments in this ASU provide guidance on when changes to the terms or conditions of a share-based payment award are to be accounted for as modifications. Under ASU 2017-09, entities are not required to apply modification accounting to a share-based payment award when the award’s fair value, vesting conditions, and classification as an entity or a liability instrument remain the same after the change. ASU 2017-09 is effective for all entities beginning after December 15, 2017 including interim periods within the fiscal year. The adoption of this update on January 1, 2018 did not have a significant impact on the Company’s consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” The amendments in this ASU make more financial and non-financial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. There was no impact to the Company’s financial statements or disclosures as a result of this early adoption as of January 1, 2018.

Newly issued not yet effective accounting standards:

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The update will require lessees to recognize right-of-use assets and lease liabilities for all leases not considered short term leases. The provisions of the update also include (a) defining direct costs to only include those incremental costs that would not have been incurred if the lease had not been entered into, (b) circumstances under which the transfer contract in a sale-leaseback transaction should be accounted for as the sale of an asset by the seller-lessee and the purchase of an asset by the buyer-lessor, and (c) additional disclosure requirements. The provisions of this update become effective for interim and annual periods beginning after December 15, 2018. Management is currently evaluating the potential impact of this update.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as, the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will become effective for interim and annual periods beginning after December 15, 2019. Management is currently evaluating the potential impact of this update.

In March 2017, the FASB issued ASU 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount, which continue to be amortized to maturity. Public business entities must prospectively apply the amendments in this ASU to annual periods beginning after December 15, 2018, including interim periods. The adoption of this update will not have an impact on the Company’s consolidated financial statements.

v3.10.0.1
Basis of Presentation (Tables)
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Summary of Basic and Diluted Earnings Per Common Share

The following is a summary of the basic and diluted earnings per common share calculation for each of the periods presented:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Basic earnings per share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

22,065

 

 

$

11,239

 

 

$

41,819

 

 

$

20,992

 

Dividends paid on and undistributed earnings allocated to

     participating securities

 

 

(117

)

 

 

 

 

 

(223

)

 

 

 

Earnings attributable to common shareholders

 

$

21,948

 

 

$

11,239

 

 

$

41,596

 

 

$

20,992

 

Weighted-average basic shares outstanding

 

 

30,678,732

 

 

 

25,741,968

 

 

 

30,646,189

 

 

 

24,944,633

 

Basic earnings per share

 

$

0.72

 

 

$

0.44

 

 

$

1.36

 

 

$

0.84

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings attributable to common shareholders

 

$

21,948

 

 

$

11,239

 

 

$

41,596

 

 

$

20,992

 

Weighted-average basic shares outstanding

 

 

30,678,732

 

 

 

25,741,968

 

 

 

30,646,189

 

 

 

24,944,633

 

Weighted-average diluted shares contingently issuable

 

 

615,312

 

 

 

559,490

 

 

 

629,657

 

 

 

505,786

 

Weighted-average diluted shares outstanding

 

 

31,294,044

 

 

 

26,301,458

 

 

 

31,275,846

 

 

 

25,450,419

 

Diluted earnings per share

 

$

0.70

 

 

$

0.43

 

 

$

1.33

 

 

$

0.82

 

 

v3.10.0.1
Mergers and acquisitions (Tables) - Clayton Banks
6 Months Ended
Jun. 30, 2018
Business Acquisition [Line Items]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

As of December 31, 2017, the Company finalized its valuation of all assets acquired and liabilities assumed, resulting in no material changes to preliminary purchase accounting adjustments. The following tables present the final estimated fair value of net assets acquired as of the July 31, 2017 acquisition date and the consideration paid and an allocation of the purchase price to net assets acquired:

 

 

 

As of July 31, 2017

 

 

 

As Recorded by FB Financial Corporation(1)

 

Assets

 

 

 

 

Cash and cash equivalents

 

$

49,059

 

Investment securities

 

 

59,493

 

FHLB stock

 

 

3,409

 

Loans

 

 

1,059,728

 

Allowance for loan losses

 

 

 

Premises and equipment

 

 

18,866

 

Other real estate owned

 

 

6,888

 

Intangibles, net

 

 

12,334

 

Other assets

 

 

5,978

 

Total assets

 

$

1,215,755

 

Liabilities

 

 

 

 

Interest-bearing deposits

 

$

670,054

 

Non-interest bearing deposits

 

 

309,464

 

Borrowings

 

 

84,831

 

Accrued expenses and other liabilities

 

 

5,245

 

Total liabilities

 

$

1,069,594

 

Net assets acquired

 

$

146,161

 

 

Schedule of Consideration Paid and Allocation of Purchase Price to Net Assets Acquired

 

Purchase price:

 

 

 

 

 

 

 

 

 

Equity consideration

 

 

 

 

 

 

 

 

 

Common stock issued

 

 

1,521,200

 

 

 

 

 

 

Price per share as of July 31, 2017

 

$

34.37

 

 

 

 

 

 

Total equity consideration

 

 

 

 

 

$

52,284

 

 

Cash consideration

 

 

 

 

 

 

184,200

 

(2)

Total consideration paid

 

 

 

 

 

$

236,484

 

 

Preliminary allocation of consideration paid:

 

 

 

 

 

 

 

 

 

Fair value of net assets acquired including identifiable intangible assets

 

 

 

 

 

$

146,161

 

 

Goodwill

 

 

 

 

 

 

90,323

 

 

Total consideration paid

 

 

 

 

 

$

236,484

 

 

 

Business Acquisition, Pro Forma Information

The pro forma information is not indicative of what would have occurred had the acquisition taken place on January 1, 2016 and does not include the effect of all cost-saving or revenue-enhancing strategies.

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2017

 

 

2017

 

Net interest income

 

$

47,404

 

 

$

94,091

 

Total revenues

 

$

84,545

 

 

$

163,826

 

Net income

 

$

17,290

 

 

$

34,018

 

 

v3.10.0.1
Investment securities (Tables)
6 Months Ended
Jun. 30, 2018
Investments Debt And Equity Securities [Abstract]  
Summary of Amortized Cost of Securities and Fair Values

The amortized cost of securities and their fair values at June 30, 2018 and December 31, 2017 are shown below:

 

 

June 30, 2018

 

 

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair Value

 

Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale debt securities

 

 

 

 

 

 

 

U.S. government agency securities

 

$

999

 

 

$

 

 

$

(16

)

 

$

983

 

Mortgage-backed securities - residential

 

 

494,599

 

 

 

169

 

 

 

(16,794

)

 

 

477,974

 

Municipals, tax exempt

 

 

122,710

 

 

 

1,472

 

 

 

(1,935

)

 

 

122,247

 

Treasury securities

 

 

7,364

 

 

 

 

 

 

(208

)

 

 

7,156

 

Total

 

$

625,672

 

 

$

1,641

 

 

$

(18,953

)

 

$

608,360

 

 

 

December 31, 2017

 

 

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair Value

 

Investment Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency securities

 

$

999

 

 

$

 

 

$

(13

)

 

$

986

 

Mortgage-backed securities - residential

 

 

425,557

 

 

 

374

 

 

 

(7,150

)

 

 

418,781

 

Municipals, tax exempt

 

 

107,127

 

 

 

2,692

 

 

 

(568

)

 

 

109,251

 

Treasury securities

 

 

7,345

 

 

 

 

 

 

(93

)

 

 

7,252

 

Total debt securities

 

 

541,028

 

 

 

3,066

 

 

 

(7,824

)

 

 

536,270

 

Equity and other securities

 

 

7,870

 

 

 

1

 

 

 

(149

)

 

 

7,722

 

Total investment securities

 

$

548,898

 

 

$

3,067

 

 

$

(7,973

)

 

$

543,992

 

 

Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity

Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.

 

 

 

June 30, 2018

 

 

December 31, 2017

 

 

 

Available-for-sale

 

 

Available-for-sale

 

 

 

Amortized cost

 

 

Fair value

 

 

Amortized cost

 

 

Fair value

 

Due in one year or less

 

$

11,991

 

 

$

12,195

 

 

$

905

 

 

$

925

 

Due in one to five years

 

 

20,026

 

 

 

20,083

 

 

 

28,332

 

 

 

28,878

 

Due in five to ten years

 

 

18,795

 

 

 

18,769

 

 

 

19,218

 

 

 

19,588

 

Due in over ten years

 

 

80,261

 

 

 

79,339

 

 

 

67,016

 

 

 

68,098

 

 

 

 

131,073

 

 

 

130,386

 

 

 

115,471

 

 

 

117,489

 

Mortgage-backed securities - residential

 

 

494,599

 

 

 

477,974

 

 

 

425,557

 

 

 

418,781

 

Total debt securities

 

$

625,672

 

 

$

608,360

 

 

$

541,028

 

 

$

536,270

 

 

Summary of Sales of Available-for-Sale Securities

Sales of available-for-sale securities were as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Proceeds from sales

 

$

 

 

$

12,158

 

 

$

221

 

 

 

12,158

 

Gross realized gains

 

 

 

 

 

77

 

 

 

 

 

 

77

 

Gross realized losses

 

 

 

 

 

48

 

 

 

9

 

 

 

48

 

 

 

Schedule of Gross Unrealized Losses

The following tables show gross unrealized losses at June 30, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

 

 

 

June 30, 2018

 

 

 

Less than 12 months

 

 

12 months or more

 

 

Total

 

 

 

Fair Value

 

 

Unrealized Loss

 

 

Fair Value

 

 

Unrealized Loss

 

 

Fair Value

 

 

Unrealized loss

 

U.S. government agency securities

 

$

 

 

$

 

 

$

983

 

 

$

16

 

 

$

983

 

 

$

16

 

Mortgage-backed securities - residential

 

 

185,980

 

 

 

4,472

 

 

 

261,675

 

 

 

12,322

 

 

 

447,655

 

 

 

16,794

 

Municipals, tax exempt

 

 

32,413

 

 

 

760

 

 

 

19,158

 

 

 

1,175

 

 

 

51,571

 

 

 

1,935

 

Treasury securities

 

 

7,156

 

 

 

208

 

 

 

 

 

 

 

 

 

7,156

 

 

$

208

 

Total debt securities

 

$

225,549

 

 

$

5,440

 

 

$

281,816

 

 

$

13,513

 

 

$

507,365

 

 

$

18,953

 

 

 

 

December 31, 2017

 

 

 

Less than 12 months

 

 

12 months or more

 

 

Total

 

 

 

Fair Value

 

 

Unrealized Loss

 

 

Fair Value

 

 

Unrealized Loss

 

 

Fair Value

 

 

Unrealized loss

 

U.S. government agency securities

 

$

 

 

$

 

 

$

986

 

 

$

13

 

 

$

986

 

 

$

13

 

Mortgage-backed securities - residential

 

 

107,611

 

 

 

980

 

 

 

290,258

 

 

 

6,170

 

 

 

397,869

 

 

 

7,150

 

Municipals, tax exempt

 

 

7,354

 

 

 

101

 

 

 

20,112

 

 

 

467

 

 

 

27,466

 

 

 

568

 

Treasury securities

 

 

7,252

 

 

 

93

 

 

 

 

 

 

 

 

 

7,252

 

 

 

93

 

Total debt securities

 

 

122,217

 

 

 

1,174

 

 

 

311,356

 

 

 

6,650

 

 

 

433,573

 

 

 

7,824

 

Equity and other securities

 

 

 

 

 

 

 

 

3,050

 

 

 

149

 

 

 

3,050

 

 

 

149

 

 

 

$

122,217

 

 

$

1,174

 

 

$

314,406

 

 

$

6,799

 

 

$

436,623

 

 

$

7,973

 

 

v3.10.0.1
Loans and Allowance for Loan Losses (Tables)
6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Loans Outstanding by Major Lending Classification

Loans outstanding at June 30, 2018 and December 31, 2017, by major lending classification are as follows:

 

 

 

June 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Commercial  and industrial

 

$

813,054

 

 

$

715,075

 

Construction

 

 

522,471

 

 

 

448,326

 

Residential real estate:

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

528,158

 

 

 

480,989

 

Residential line of credit

 

 

208,668

 

 

 

194,986

 

Multi-family mortgage

 

 

57,344

 

 

 

62,374

 

Commercial real estate:

 

 

 

 

 

 

 

 

Owner occupied

 

 

470,872

 

 

 

495,872

 

Non-owner occupied

 

 

600,629

 

 

 

551,588

 

Consumer and other

 

 

214,379

 

 

 

217,701

 

Gross loans

 

 

3,415,575

 

 

 

3,166,911

 

Less: Allowance for loan losses

 

 

(26,347

)

 

 

(24,041

)

Net loans

 

$

3,389,228

 

 

$

3,142,870

 

 

Changes in Accretable Yield on Purchase Credit Impaired Loans

The following table presents changes in the value of the accretable yield for PCI loans for the periods indicated.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Balance at beginning of period

 

$

(16,955

)

 

$

(2,142

)

 

$

(17,682

)

 

$

(2,444

)

Principal reductions/ pay-offs

 

 

(2,158

)

 

 

(292

)

 

 

(3,452

)

 

 

(990

)

Recoveries

 

 

 

 

 

 

 

 

 

 

 

(23

)

Accretion

 

 

2,639

 

 

 

589

 

 

 

4,840

 

 

 

1,612

 

Other changes

 

 

(3,695

)

 

 

 

 

 

(3,875

)

 

 

 

Balance at end of period

 

$

(20,169

)

 

$

(1,845

)

 

$

(20,169

)

 

$

(1,845

)

 

Allowance for Loan Losses by Portfolio Segment and Related Investment in Loans Net of Unearned Interest

The following provides the allowance for loan losses by portfolio segment and the related investment in loans net of unearned interest for the three and six months ended June 30, 2018 and 2017:

 

 

 

Commercial

and industrial

 

 

Construction

 

 

1-to-4

family

residential

mortgage

 

 

Residential

line of credit

 

 

Multi-

family

residential

mortgage

 

 

Commercial

real estate

owner

occupied

 

 

Commercial

real estate

non-owner occupied

 

 

Consumer

and other

 

 

Total

 

Three Months Ended June 30, 2018

 

Beginning balance -

   March 31, 2018

 

$

4,578

 

 

$

7,866

 

 

$

3,122

 

 

$

1,165

 

 

$

449

 

 

$

3,014

 

 

$

2,753

 

 

$

1,459

 

 

$

24,406

 

Provision for loan losses

 

 

39

 

 

 

310

 

 

 

218

 

 

 

(414

)

 

 

(58

)

 

 

168

 

 

 

519

 

 

 

281

 

 

 

1,063

 

Recoveries of loans

   previously charged-off

 

 

135

 

 

 

862

 

 

 

43

 

 

 

44

 

 

 

 

 

 

108

 

 

 

 

 

 

107

 

 

 

1,299

 

Loans charged off

 

 

(5

)

 

 

(15

)

 

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(396

)

 

 

(421

)

Ending balance -

   June 30, 2018

 

$

4,747

 

 

$

9,023

 

 

$

3,378

 

 

$

795

 

 

$

391

 

 

$

3,290

 

 

$

3,272

 

 

$

1,451

 

 

$

26,347

 

Six Months Ended June 30, 2018

 

Beginning balance -

   December 31, 2017

 

$

4,461

 

 

$

7,135

 

 

$

3,197

 

 

$

944

 

 

$

434

 

 

$

3,558

 

 

$

2,817

 

 

$

1,495

 

 

$

24,041

 

Provision for loan losses

 

 

241

 

 

 

789

 

 

 

188

 

 

 

(200

)

 

 

(43

)

 

 

(399

)

 

 

404

 

 

 

400

 

 

 

1,380

 

Recoveries of loans

   previously charged-off

 

 

270

 

 

 

1,114

 

 

 

58

 

 

 

71

 

 

 

 

 

 

131

 

 

 

51

 

 

 

313

 

 

 

2,008

 

Loans charged off

 

 

(225

)

 

 

(15

)

 

 

(65

)

 

 

(20

)

 

 

 

 

 

 

 

 

 

 

 

(757

)

 

 

(1,082

)

Ending balance -

   June 30, 2018

 

$

4,747

 

 

$

9,023

 

 

$

3,378

 

 

$

795

 

 

$

391

 

 

$

3,290

 

 

$

3,272

 

 

$

1,451

 

 

$

26,347

 

 

 

 

Commercial

and industrial

 

 

Construction

 

 

1-to-4

family

residential mortgage

 

 

Residential

line of credit

 

 

Multi-

family

residential mortgage

 

 

Commercial

real estate

owner

occupied

 

 

Commercial

real estate

non-owner occupied

 

 

Consumer

and other

 

 

Total

 

Three Months Ended June 30, 2017

 

Beginning balance -

   March 31, 2017

 

$

5,402

 

 

$

5,598

 

 

$

2,896

 

 

$

1,514

 

 

$

508

 

 

$

3,387

 

 

$

2,660

 

 

$

933

 

 

$

22,898

 

Provision for loan losses

 

 

(1,342

)

 

 

(48

)

 

 

99

 

 

 

(29

)

 

 

5

 

 

 

585

 

 

 

(210

)

 

 

75

 

 

 

(865

)

Recoveries of loans

   previously charged-off

 

 

1,511

 

 

 

29

 

 

 

14

 

 

 

155

 

 

 

 

 

 

11

 

 

 

2

 

 

 

283

 

 

 

2,005

 

Loans charged off

 

 

(131

)

 

 

 

 

 

(35

)

 

 

(195

)

 

 

 

 

 

 

 

 

 

 

 

(430

)

 

 

(791

)

Ending balance -

   June 30, 2017

 

$

5,440

 

 

$

5,579

 

 

$

2,974

 

 

$

1,445

 

 

$

513

 

 

$

3,983

 

 

$

2,452

 

 

$

861

 

 

$

23,247

 

Six Months Ended June 30, 2017

 

 

 

 

 

Beginning balance - December 31, 2016

 

$

5,309

 

 

$

4,940

 

 

$

3,197

 

 

$

1,613

 

 

$

504

 

 

$

3,302

 

 

$

2,019

 

 

$

863

 

 

$

21,747

 

Provision for loan losses

 

 

(1,163

)

 

 

587

 

 

 

(140

)

 

 

(184

)

 

 

9

 

 

 

666

 

 

 

(1,208

)

 

 

311

 

 

 

(1,122

)

Recoveries of loans

   previously charged-off

 

 

1,594

 

 

 

58

 

 

 

40

 

 

 

211

 

 

 

 

 

 

15

 

 

 

1,641

 

 

 

296

 

 

 

3,855

 

Loans charged off

 

 

(300

)

 

 

(6

)

 

 

(123

)

 

 

(195

)

 

 

 

 

 

 

 

 

 

 

 

(609

)

 

 

(1,233

)

Ending balance -

   June 30, 2017

 

$

5,440

 

 

$

5,579

 

 

$

2,974

 

 

$

1,445

 

 

$

513

 

 

$

3,983

 

 

$

2,452

 

 

$

861

 

 

$

23,247

 

 

Allocation of Allowance for Loan Losses by Loan Category Broken Out Between Loans Individually and Collectively Evaluated for Impairment

The following table provides the allocation of the allowance for loan losses by loan category broken out between loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of June 30, 2018 and December 31, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2018

 

 

 

Commercial

and industrial

 

 

Construction

 

 

1-to-4

family

residential mortgage

 

 

Residential

line of credit

 

 

Multi-

family

residential mortgage

 

 

Commercial

real estate

owner

occupied

 

 

Commercial

real estate

non-owner occupied

 

 

Consumer

and other

 

 

Total

 

Amount of allowance allocated to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for

   impairment

 

$

49

 

 

$

 

 

$

12

 

 

$

 

 

$

 

 

$

124

 

 

$

 

 

$

 

 

$

185

 

Collectively evaluated for

   impairment

 

 

4,685

 

 

 

8,998

 

 

 

3,227

 

 

 

795

 

 

 

391

 

 

 

3,082

 

 

 

2,894

 

 

 

1,407

 

 

 

25,479

 

Acquired with deteriorated

   credit quality

 

 

13

 

 

 

25

 

 

 

139

 

 

 

 

 

 

 

 

 

84

 

 

 

378

 

 

 

44

 

 

 

683

 

Ending balance -

   June 30, 2018

 

$

4,747

 

 

$

9,023

 

 

$

3,378

 

 

$

795

 

 

$

391

 

 

$

3,290

 

 

$

3,272

 

 

$

1,451

 

 

$

26,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

Commercial

and industrial

 

 

Construction

 

 

1-to-4

family

residential mortgage

 

 

Residential

line of credit

 

 

Multi-

family

residential mortgage

 

 

Commercial

real estate

owner

occupied

 

 

Commercial

real estate

non-owner occupied

 

 

Consumer

and other

 

 

Total

 

Amount of allowance allocated to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for

   impairment

 

$

20

 

 

$

 

 

$

18

 

 

$

 

 

$

 

 

$

120

 

 

$

33

 

 

$

 

 

$

191

 

Collectively evaluated for

   impairment

 

 

4,441

 

 

 

7,135

 

 

 

3,179

 

 

 

944

 

 

 

434

 

 

 

3,438

 

 

 

2,784

 

 

 

1,495

 

 

 

23,850

 

Acquired with deteriorated

   credit quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance -

   December 31, 2017

 

$

4,461

 

 

$

7,135

 

 

$

3,197

 

 

$

944

 

 

$

434

 

 

$

3,558

 

 

$

2,817

 

 

$

1,495

 

 

$

24,041

 

 

Amount of Loans by Loan Category Broken Between Loans Individually and Collectively Evaluated for Impairment and Acquired with Deteriorated Credit Quality

 

The following table provides the amount of loans by loan category broken between loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of June 30, 2018 and December 31, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2018

 

 

 

Commercial

and industrial

 

 

Construction

 

 

1-to-4

family

residential mortgage

 

 

Residential line of credit

 

 

Multi-

family

residential mortgage

 

 

Commercial

real estate

owner

occupied

 

 

Commercial

real estate

non-owner occupied

 

 

Consumer and other

 

 

Total

 

Loans, net of unearned income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for

   impairment

 

$

2,186

 

 

$

1,281

 

 

$

1,503

 

 

$

 

 

$

951

 

 

$

2,266

 

 

$

1,049

 

 

$

27

 

 

$

9,263

 

Collectively evaluated for

   impairment

 

 

809,102

 

 

 

514,129

 

 

 

505,643

 

 

 

208,668

 

 

 

56,377

 

 

 

460,281

 

 

 

581,531

 

 

 

192,268

 

 

 

3,327,999

 

Acquired with deteriorated

   credit quality

 

 

1,766

 

 

 

7,061

 

 

 

21,012

 

 

 

 

 

 

16

 

 

 

8,325

 

 

 

18,049

 

 

 

22,084

 

 

 

78,313

 

Ending balance -

   June 30, 2018

 

$

813,054

 

 

$

522,471

 

 

$

528,158

 

 

$

208,668

 

 

$

57,344

 

 

$

470,872

 

 

$

600,629

 

 

$

214,379

 

 

$

3,415,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

Commercial

and industrial

 

 

Construction

 

 

1-to-4

family

residential mortgage

 

 

Residential line of credit

 

 

Multi-

family

residential mortgage

 

 

Commercial

real estate

owner

occupied

 

 

Commercial

real estate

non-owner occupied

 

 

Consumer

and other

 

 

Total

 

Loans, net of unearned income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated

   for impairment

 

$

1,579

 

 

$

1,289

 

 

$

1,262

 

 

$

 

 

$

978

 

 

$

2,520

 

 

$

1,720

 

 

$

25

 

 

$

9,373

 

Collectively evaluated

   for impairment

 

 

711,352

 

 

 

439,309

 

 

 

456,229

 

 

 

194,986

 

 

 

61,376

 

 

 

481,390

 

 

 

531,704

 

 

 

192,357

 

 

 

3,068,703

 

Acquired with deteriorated

   credit quality

 

 

2,144

 

 

 

7,728

 

 

 

23,498

 

 

 

 

 

 

20

 

 

 

11,962

 

 

 

18,164

 

 

 

25,319

 

 

 

88,835

 

Ending balance -

   December 31, 2017

 

$

715,075

 

 

$

448,326

 

 

$

480,989

 

 

$

194,986

 

 

$

62,374

 

 

$

495,872

 

 

$

551,588

 

 

$

217,701

 

 

$

3,166,911

 

 

Credit Quality Indicators by Portfolio Class

The following table shows credit quality indicators by portfolio class at June 30, 2018 and December 31, 2017:

 

June 30, 2018

 

Pass

 

 

Watch

 

 

Substandard

 

 

Total

 

Loans, excluding purchased credit impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

746,253

 

 

$

59,476

 

 

$

5,559

 

 

$

811,288

 

Construction

 

 

499,370

 

 

 

14,278

 

 

 

1,762

 

 

 

515,410

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

490,856

 

 

 

8,625

 

 

 

7,665

 

 

 

507,146

 

Residential line of credit

 

 

205,614

 

 

 

1,632

 

 

 

1,422

 

 

 

208,668

 

Multi-family mortgage

 

 

56,245

 

 

 

133

 

 

 

950

 

 

 

57,328

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

434,025

 

 

 

20,435

 

 

 

8,087

 

 

 

462,547

 

Non-owner occupied

 

 

565,195

 

 

 

16,096

 

 

 

1,289

 

 

 

582,580

 

Consumer and other

 

 

185,919

 

 

 

2,289

 

 

 

4,087

 

 

 

192,295

 

Total loans, excluding purchased credit impaired

   loans

 

$

3,183,477

 

 

$

122,964

 

 

$

30,821

 

 

$

3,337,262

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased credit impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

 

 

$

1,187

 

 

$

579

 

 

$

1,766

 

Construction

 

 

 

 

 

3,332

 

 

 

3,729

 

 

 

7,061

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

 

 

 

16,721

 

 

 

4,291

 

 

 

21,012

 

Residential line of credit

 

 

 

 

 

 

 

 

 

 

 

 

Multi-family mortgage

 

 

 

 

 

 

 

 

16

 

 

 

16

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

 

 

 

4,488

 

 

 

3,837

 

 

 

8,325

 

Non-owner occupied

 

 

 

 

 

7,465

 

 

 

10,584

 

 

 

18,049

 

Consumer and other

 

 

 

 

 

17,474

 

 

 

4,610

 

 

 

22,084

 

Total purchased credit impaired loans

 

$

 

 

$

50,667

 

 

$

27,646

 

 

$

78,313

 

Total loans

 

$

3,183,477

 

 

$

173,631

 

 

$

58,467

 

 

$

3,415,575

 

 

December 31, 2017

 

Pass

 

 

Watch

 

 

Substandard

 

 

Total

 

Loans, excluding purchased credit impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

657,595

 

 

$

50,946

 

 

$

4,390

 

 

$

712,931

 

Construction

 

 

431,242

 

 

 

7,388

 

 

 

1,968

 

 

 

440,598

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

440,202

 

 

 

9,522

 

 

 

7,767

 

 

 

457,491

 

Residential line of credit

 

 

192,427

 

 

 

1,184

 

 

 

1,375

 

 

 

194,986

 

Multi-family mortgage

 

 

61,234

 

 

 

142

 

 

 

978

 

 

 

62,354

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

451,140

 

 

 

28,308

 

 

 

4,462

 

 

 

483,910

 

Non-owner occupied

 

 

517,253

 

 

 

14,199

 

 

 

1,972

 

 

 

533,424

 

Consumer and other

 

 

189,081

 

 

 

2,712

 

 

 

589

 

 

 

192,382

 

Total loans, excluding purchased credit impaired

   loans

 

$

2,940,174

 

 

$

114,401

 

 

$

23,501

 

 

$

3,078,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased credit impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

 

 

$

1,499

 

 

$

645

 

 

$

2,144

 

Construction

 

 

 

 

 

3,324

 

 

 

4,404

 

 

 

7,728

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

 

 

 

20,284

 

 

 

3,214

 

 

 

23,498

 

Residential line of credit

 

 

 

 

 

 

 

 

 

 

 

 

Multi-family mortgage

 

 

 

 

 

 

 

 

20

 

 

 

20

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

 

 

 

4,631

 

 

 

7,331

 

 

 

11,962

 

Non-owner occupied

 

 

 

 

 

7,359

 

 

 

10,805

 

 

 

18,164

 

Consumer and other

 

 

 

 

 

19,751

 

 

 

5,568

 

 

 

25,319

 

Total purchased credit impaired loans

 

$

 

 

$

56,848

 

 

$

31,987

 

 

$

88,835

 

Total loans

 

$

2,940,174

 

 

$

171,249

 

 

$

55,488

 

 

$

3,166,911

 

 

Past Due Loans

Nonperforming loans include loans that are no longer accruing interest (non-accrual loans) and loans past due ninety or more days and still accruing interest. Nonperforming loans and impaired loans are defined differently. Some loans may be included in both categories, whereas other loans may only be included in one category.

The following table provides the period-end amounts of loans that are past due thirty to eighty-nine days, past due ninety or more days and still accruing interest, loans not accruing interest, loans current on payments accruing interest and purchased credit impaired loans by category at June 30, 2018 and December 31, 2017:

 

June 30, 2018

 

30-89 days

past due

 

 

90 days or more

and accruing

interest

 

 

Non-accrual

loans

 

 

Loans current

on payments

and accruing

interest

 

 

Purchased Credit Impaired loans

 

 

Total

 

Commercial and industrial

 

$

3,138

 

 

$

145

 

 

$

707

 

 

$

807,298

 

 

$

1,766

 

 

$

813,054

 

Construction

 

 

850

 

 

 

193

 

 

 

328

 

 

 

514,039

 

 

 

7,061

 

 

 

522,471

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

3,605

 

 

 

859

 

 

 

2,293

 

 

 

500,389

 

 

 

21,012

 

 

 

528,158

 

Residential line of credit

 

 

1,345

 

 

 

254

 

 

 

507

 

 

 

206,562

 

 

 

 

 

 

208,668

 

Multi-family mortgage

 

 

 

 

 

 

 

 

 

 

 

57,328

 

 

 

16

 

 

 

57,344

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

249

 

 

 

 

 

 

2,052

 

 

 

460,246

 

 

 

8,325

 

 

 

470,872

 

Non-owner occupied

 

 

 

 

 

 

 

 

1,212

 

 

 

581,368

 

 

 

18,049

 

 

 

600,629

 

Consumer and other

 

 

1,807

 

 

 

188

 

 

 

75

 

 

 

190,225

 

 

 

22,084

 

 

 

214,379

 

Total

 

$

10,994

 

 

$

1,639

 

 

$

7,174

 

 

$

3,317,455

 

 

$

78,313

 

 

$

3,415,575

 

 

December 31, 2017

 

30-89 days

past due

 

 

90 days or more

and accruing

interest

 

 

Non-accrual

loans

 

 

Loans current

on payments

and accruing

interest

 

 

Purchased Credit Impaired loans

 

 

Total

 

Commercial and industrial

 

$

5,859

 

 

$

90

 

 

$

533

 

 

$

706,449

 

 

$

2,144

 

 

$

715,075

 

Construction

 

 

1,412

 

 

 

241

 

 

 

300

 

 

 

438,645

 

 

 

7,728

 

 

 

448,326

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

4,678

 

 

 

956

 

 

 

2,548

 

 

 

449,309

 

 

 

23,498

 

 

 

480,989

 

Residential line of credit

 

 

527

 

 

 

134

 

 

 

699

 

 

 

193,626

 

 

 

 

 

 

194,986

 

Multi-family mortgage

 

 

 

 

 

 

 

 

 

 

 

62,354

 

 

 

20

 

 

 

62,374

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

521

 

 

 

358

 

 

 

2,582

 

 

 

480,449

 

 

 

11,962

 

 

 

495,872

 

Non-owner occupied

 

 

121

 

 

 

 

 

 

1,371

 

 

 

531,932

 

 

 

18,164

 

 

 

551,588

 

Consumer and other

 

 

1,945

 

 

 

217

 

 

 

68

 

 

 

190,152

 

 

 

25,319

 

 

 

217,701

 

Total

 

$

15,063

 

 

$

1,996

 

 

$

8,101

 

 

$

3,052,916

 

 

$

88,835

 

 

$

3,166,911

 

 

Impaired Loans Recognized, Segregated by Class

Impaired loans recognized in conformity with ASC 310-20 at June 30, 2018 and December 31, 2017, segregated by class, were as follows:

 

June 30, 2018

 

Recorded

investment

 

 

Unpaid

principal

 

 

Related

allowance

 

With a related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

153

 

 

$

153

 

 

$

49

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

187

 

 

 

488

 

 

 

12

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

754

 

 

 

819

 

 

 

124

 

Total

 

$

1,094

 

 

$

1,460

 

 

$

185

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

2,033

 

 

$

2,387

 

 

$

 

Construction

 

 

1,281

 

 

 

1,314

 

 

 

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

1,316

 

 

 

1,322

 

 

 

 

Multi-family mortgage

 

 

951

 

 

 

951

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

1,512

 

 

 

2,039

 

 

 

 

Non-owner occupied

 

 

1,049

 

 

 

1,781

 

 

 

 

Consumer and other

 

 

27

 

 

 

27

 

 

 

 

Total

 

$

8,169

 

 

$

9,821

 

 

$

 

Total impaired loans

 

$

9,263

 

 

$

11,281

 

 

$

185

 

 

December 31, 2017

 

Recorded

investment

 

 

Unpaid

principal

 

 

Related

allowance

 

With a related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

53

 

 

$

53

 

 

$

20

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

194

 

 

 

495

 

 

 

18

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

844

 

 

 

1,123

 

 

 

120

 

Non-owner occupied

 

 

144

 

 

 

150

 

 

 

33

 

Total

 

$

1,235

 

 

$

1,821

 

 

$

191

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

1,526

 

 

$

1,570

 

 

$

 

Construction

 

 

1,289

 

 

 

1,313

 

 

 

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

1,068

 

 

 

1,072

 

 

 

 

Multi-family mortgage

 

 

978

 

 

 

978

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

1,676

 

 

 

2,168

 

 

 

 

Non-owner occupied

 

 

1,576

 

 

 

2,325

 

 

 

 

Consumer and other

 

 

25

 

 

 

25

 

 

 

 

Total

 

$

8,138

 

 

$

9,451

 

 

$

 

Total impaired loans

 

$

9,373

 

 

$

11,272

 

 

$

191

 

Average recorded investment and interest income on a cash basis recognized during the three and six months ended June 30, 2018 and 2017 on impaired loans, segregated by class, were as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

June 30, 2018

 

Average recorded investment

 

 

Interest income recognized (cash basis)

 

 

Average recorded investment

 

 

Interest income recognized (cash basis)

 

With a related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

103

 

 

$

2

 

 

$

103

 

 

$

3

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

189

 

 

 

2

 

 

 

191

 

 

 

4

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

670

 

 

 

21

 

 

 

799

 

 

 

27

 

Non-owner occupied

 

 

71

 

 

 

 

 

 

72

 

 

 

2

 

Total

 

$

1,033

 

 

$

25

 

 

$

1,165

 

 

$

36

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

1,683

 

 

$

43

 

 

$

1,780

 

 

$

59

 

Construction

 

 

1,283

 

 

 

6

 

 

 

1,285

 

 

 

36

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

1,309

 

 

 

31

 

 

 

1,192

 

 

 

44

 

Multi-family mortgage

 

 

958

 

 

 

12

 

 

 

965

 

 

 

24

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

1,539

 

 

 

28

 

 

 

1,594

 

 

 

60

 

Non-owner occupied

 

 

1,310

 

 

 

 

 

 

1,313

 

 

 

7

 

Consumer and other

 

 

28

 

 

 

1

 

 

 

26

 

 

 

1

 

Total

 

$

8,110

 

 

$

121

 

 

$

8,155

 

 

$

231

 

Total impaired loans

 

$

9,143

 

 

$

146

 

 

$

9,320

 

 

$

267

 

June 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With a related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

729

 

 

$

5

 

 

$

792

 

 

$

10

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

98

 

 

 

 

 

 

100

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

616

 

 

 

8

 

 

 

622

 

 

 

20

 

Non-owner occupied

 

 

514

 

 

 

2

 

 

 

829

 

 

 

2

 

Consumer and other

 

 

 

 

 

 

 

 

1

 

 

 

 

Total

 

$

1,957

 

 

$

15

 

 

$

2,344

 

 

$

32

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

519

 

 

$

7

 

 

$

557

 

 

$

16

 

Construction

 

 

302

 

 

 

4

 

 

 

1,493

 

 

 

9

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

 

2,106

 

 

 

15

 

 

 

2,232

 

 

 

32

 

Residential line of credit

 

 

 

 

 

 

 

 

156

 

 

 

 

Multi-family mortgage

 

 

1,008

 

 

 

12

 

 

 

1,014

 

 

 

23

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

1,801

 

 

 

23

 

 

 

1,941

 

 

 

61

 

Non-owner occupied

 

 

1,602

 

 

 

5

 

 

 

1,323

 

 

 

5

 

Consumer and other

 

 

25

 

 

 

 

 

 

25

 

 

 

1

 

Total

 

$

7,363

 

 

$

66

 

 

$

8,741

 

 

$

147

 

Total impaired loans

 

$

9,320

 

 

$

81

 

 

$

11,085

 

 

$

179

 

 

Financial Effect of TDRs

The following tables present the financial effect of TDRs recorded during the periods indicated:

 

Three Months Ended June 30, 2018

 

Number of loans

 

 

Pre-modification outstanding recorded investment

 

 

Post-modification outstanding recorded investment

 

 

Charge offs and specific reserves

 

Commercial and industrial

 

 

2

 

 

$

887

 

 

$

887

 

 

$

 

Total

 

 

2

 

 

$

887

 

 

$

887

 

 

$

 

 

Six Months Ended June 30, 2018

 

Number of loans

 

Pre-modification outstanding recorded investment

 

 

Post-modification outstanding recorded investment

 

 

Charge offs and specific reserves

 

Commercial and industrial

 

2

 

$

887

 

 

$

887

 

 

$

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-to-4 family mortgage

 

1

 

 

249

 

 

 

249

 

 

 

 

Consumer and other

 

1

 

 

5

 

 

 

5

 

 

 

 

Total

 

4

 

$

1,141

 

 

$

1,141

 

 

$

 

 

Six Months Ended June 30, 2017

 

Number of loans

 

Pre-modification outstanding recorded investment

 

 

Post-modification outstanding recorded investment

 

 

Charge offs and specific reserves

 

Commercial and industrial

 

1

 

$

5

 

 

$

5

 

 

$

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

1

 

 

377

 

 

 

377

 

 

 

 

Non-owner occupied

 

2

 

 

711

 

 

 

711

 

 

 

 

Total

 

4

 

$

1,093

 

 

$

1,093

 

 

$

 

 

v3.10.0.1
Other Real Estate Owned (Tables)
6 Months Ended
Jun. 30, 2018
Real Estate [Abstract]  
Summary of Other Real Estate Owned

The following table summarizes other real estate owned for the three and six months ended June 30, 2018 and 2017:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Balance at beginning of period

 

$

15,334

 

 

$

6,811

 

 

$

16,442

 

 

$

7,403

 

Transfers from loans

 

 

384

 

 

 

274

 

 

 

1,014

 

 

 

1,162

 

Properties sold

 

 

(777

)

 

 

(702

)

 

 

(2,209

)

 

 

(2,930

)

(Loss) gain on sale of other real estate owned

 

 

51

 

 

 

77

 

 

 

8

 

 

 

948

 

Transferred to loans

 

 

(325

)

 

 

(36

)

 

 

(445

)

 

 

(36

)

Write-downs

 

 

(28

)

 

 

(54

)

 

 

(171

)

 

 

(177

)

Balance at end of period

 

$

14,639

 

 

$

6,370

 

 

$

14,639

 

 

$

6,370

 

 

v3.10.0.1
Mortgage Servicing Rights (Tables)
6 Months Ended
Jun. 30, 2018
Transfers And Servicing Of Financial Assets [Abstract]  
Schedule of Changes in Mortgage Servicing Rights

Changes in the Company’s mortgage servicing rights were as follows for the three and six months ended June 30, 2018 and 2017:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

2018

 

 

 

2017

 

 

 

2018

 

 

 

2017

 

Carrying value prior to policy change

 

$

93,160

 

 

$

47,593

 

 

$

76,107

 

 

$

32,070

 

Fair value impact of change in accounting policy

 

 

 

 

 

 

 

 

 

 

 

1,011

 

Carrying value at beginning of period

 

 

93,160

 

 

 

47,593

 

 

 

76,107

 

 

 

33,081

 

Capitalization

 

 

16,304

 

 

 

14,646

 

 

 

29,814

 

 

 

29,659

 

Sales

 

 

 

 

 

(11,935

)

 

 

 

 

 

(11,935

)

Change in fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due to pay-offs/pay-downs

 

 

(2,207

)

 

 

(532

)

 

 

(5,267

)

 

 

(797

)

Due to change in valuation inputs or assumptions

 

 

2,192

 

 

 

(1,308

)

 

 

8,795

 

 

 

(1,544

)

Carrying value at end of period

 

$

109,449

 

 

$

48,464

 

 

$

109,449

 

 

$

48,464

 

 

Schedule of Servicing Income and Expense Included in Mortgage Banking Income

The following table summarizes servicing income and expense included in mortgage banking income and other noninterest expense within the Mortgage Segment operating results, respectively, for the three and six months ended June 30, 2018 and 2017, respectively:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended

June 30,

 

 

 

 

2018

 

 

 

2017

 

 

 

2018

 

 

 

2017

 

Servicing income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing income

 

$

5,604

 

 

$

2,747

 

 

$

10,397

 

 

$

5,495

 

Change in fair value of mortgage servicing rights

 

 

(15

)

 

 

(1,840

)

 

 

3,528

 

 

 

(2,341

)

Change in fair value of mortgage servicing rights hedging

    instruments

 

 

(1,763

)

 

 

 

 

 

(7,019

)

 

 

 

Gross servicing income

 

 

3,826

 

 

 

907

 

 

 

6,906

 

 

 

3,154

 

Servicing expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Loss on sale of mortgage servicing rights

 

 

 

 

 

249

 

 

 

 

 

 

249

 

     Direct servicing expenses

 

 

2,078

 

 

 

1,204

 

 

 

3,873

 

 

 

2,138

 

Gross servicing expense

 

 

2,078

 

 

 

1,453

 

 

 

3,873

 

 

 

2,387

 

Net servicing income

 

$

1,748

 

 

$

(546

)

 

$

3,033

 

 

$

767

 

 

Schedule of Data and Key Economic Assumptions Related to Mortgage Servicing Rights

Data and key economic assumptions related to the Company’s mortgage servicing rights as of June 30, 2018 and December 31, 2017 are as follows:

 

 

 

June 30,

 

 

December 31,

 

 

 

 

2018

 

 

 

2017

 

Unpaid principal balance

 

$

8,483,445

 

 

$

6,529,431

 

Weighted-average prepayment speed (CPR)

 

 

7.63

%

 

 

8.90

%

Estimated impact on fair value of a 10% increase

 

 

(3,588

)

 

 

(3,026

)

Estimated impact on fair value of a 20% increase

 

 

(6,921

)

 

 

(5,855

)

Discount rate

 

 

10.23

%

 

 

9.75

%

Estimated impact on fair value of a 100 bp increase

 

 

(4,578

)

 

 

(3,052

)

Estimated impact on fair value of a 200 bp increase

 

 

(8,813

)

 

 

(5,867

)

Weighted-average coupon interest rate

 

 

4.06

%

 

 

3.94

%

Weighted-average servicing fee (basis points)

 

 

28

 

 

 

28

 

Weighted-average remaining maturity (in months)

 

 

331

 

 

 

335

 

 

v3.10.0.1
Income Taxes (Tables)
6 Months Ended
Jun. 30, 2018
Income Tax Disclosure [Abstract]  
Schedule of Allocation of Federal and State Income Taxes between Current and Deferred Portions

Allocation of federal and state income taxes between current and deferred portions is as follows:

 

 

 

For the three months ended

 

 

 

June 30,

 

 

 

2018

 

 

2017

 

Current

 

$

2,195

 

 

$

4,047

 

Deferred

 

 

5,599

 

 

 

2,527

 

Total

 

$

7,794

 

 

$

6,574

 

 

 

 

 

 

 

 

 

 

 

 

For the six months ended

 

 

 

 

 

 

 

June 30,

 

 

 

2018

 

 

2017

 

Current

 

$

2,195

 

 

$

4,047

 

Deferred

 

 

11,081

 

 

 

7,952

 

Total

 

$

13,276

 

 

$

11,999

 

 

Schedule of Differences in Federal Income Tax Expense and State Tax Expense from Statutory Federal and State Rates

 

Federal income tax expense differs from the statutory federal rates of 21% for the three and six months ended June 30, 2018 and 35% for the three and six months ended June 30, 2017 due to the following:

 

 

 

For the Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

 

2018

 

 

2017

 

Federal taxes calculated at statutory rate

 

$

6,270

 

 

 

21.0

%

 

$

6,234

 

 

 

35.0

%

Increase (decrease) resulting from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State taxes, net of federal benefit

 

 

1,543

 

 

 

5.2

%

 

 

741

 

 

 

4.2

%

Benefit of equity based compensation

 

 

(15

)

 

 

-0.1

%

 

 

20

 

 

 

0.1

%

Municipal interest income, net of interest disallowance

 

 

(207

)

 

 

-0.7

%

 

 

(376

)

 

 

-2.1

%

Bank owned life insurance

 

 

(13

)

 

 

0.0

%

 

 

(21

)

 

 

-0.1

%

Stock offering costs

 

 

141

 

 

 

0.5

%

 

 

 

 

 

0.0

%

Other

 

 

75

 

 

 

0.2

%

 

 

(24

)

 

 

-0.2

%

Income tax expense, as reported

 

$

7,794

 

 

 

26.1

%

 

$

6,574

 

 

 

36.9

%

 

 

 

For the Six Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

 

2018

 

 

2017

 

Federal taxes calculated at statutory rate

 

$

11,570

 

 

 

21.0

%

 

$

11,539

 

 

 

35.0

%

Increase (decrease) resulting from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State taxes, net of federal benefit

 

 

2,686

 

 

 

4.9

%

 

 

1,351

 

 

 

4.1

%

Benefit of equity based compensation

 

 

(751

)

 

 

-1.4

%

 

 

(175

)

 

 

-0.5

%

Municipal interest income, net of interest disallowance

 

 

(408

)

 

 

-0.7

%

 

 

(742

)

 

 

-2.3

%

Bank owned life insurance

 

 

(25

)

 

 

0.0

%

 

 

(42

)

 

 

-0.1

%

Stock offering costs

 

 

141

 

 

 

0.3

%

 

 

 

 

 

0.0

%

Other

 

 

63

 

 

 

0.0

%

 

 

68

 

 

 

0.2

%

Income tax expense, as reported

 

$

13,276

 

 

 

24.1

%

 

$

11,999

 

 

 

36.4

%

 

Schedule of Net Deferred Tax liability

The components of the net deferred tax liability at June 30, 2018 and December 31, 2017, are as follows:

 

 

June 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

6,865

 

 

$

6,264

 

Amortization of core deposit intangible

 

 

898

 

 

 

759

 

Deferred compensation

 

 

4,448

 

 

 

6,158

 

Unrealized loss on available-for-sale debt securities

 

 

4,563

 

 

 

988

 

Other

 

 

3,222

 

 

 

3,599

 

Subtotal

 

 

19,996

 

 

 

17,768

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

FHLB stock dividends

 

 

(550

)

 

 

(550

)

Depreciation

 

 

(4,322

)

 

 

(4,115

)

Cash flow hedges

 

 

(930

)

 

 

 

Mortgage servicing rights

 

 

(28,518

)

 

 

(19,830

)

Other

 

 

(5,969

)

 

 

(5,131

)

Subtotal

 

 

(40,289

)

 

 

(29,626

)

Net deferred tax liability

 

$

(20,293

)

 

$

(11,858

)

 

v3.10.0.1
Commitments and Contingencies (Tables)
6 Months Ended
Jun. 30, 2018
Commitments And Contingencies Disclosure [Abstract]  
Summary of Financial instruments with Off-Balance Sheet Credit Risk

Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

 

 

 

June 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Commitments to extend credit, excluding interest rate lock commitments

 

$

1,088,486

 

 

$

977,276

 

Letters of credit

 

 

18,555

 

 

 

22,882

 

Balance at end of period

 

$

1,107,041

 

 

$

1,000,158

 

 

Summary of Allowance for Loan Repurchases or Indemnifications

The following table summarizes the activity in the repurchase reserve:

 

 

For the three months ended

 

 

For the six months ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Balance at beginning of period

 

$

3,514

 

 

$

2,842

 

 

$

3,386

 

 

$

2,659

 

Provision for loan repurchases or indemnifications

 

 

206

 

 

 

201

 

 

 

392

 

 

 

384

 

Losses on loans repurchased or indemnified

 

 

(74

)

 

 

(6

)

 

 

(132

)

 

 

(6

)

Balance at end of period

 

$

3,646

 

 

$

3,037

 

 

$

3,646

 

 

$

3,037

 

 

v3.10.0.1
Derivatives (Tables)
6 Months Ended
Jun. 30, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Financial Instruments

The following tables provide details on the Company’s derivative financial instruments as of the dates presented:

 

 

 

June 30, 2018

 

 

 

Notional Amount

 

 

Asset

 

 

Liability

 

Not designated as hedging:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

231,899

 

 

$

3,798

 

 

$

3,798

 

Forward commitments

 

 

717,330

 

 

 

 

 

 

1,682

 

Interest rate-lock commitments

 

 

597,569

 

 

 

9,495

 

 

 

 

Futures contracts

 

 

231,000

 

 

 

445

 

 

 

 

Option contracts

 

 

12,000

 

 

 

83

 

 

 

 

Total

 

$

1,789,798

 

 

$

13,821

 

 

$

5,480

 

 

 

 

December 31, 2017

 

 

 

Notional Amount

 

 

Asset

 

 

Liability

 

Not designated as hedging:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

146,754

 

 

$

1,146

 

 

$

1,146

 

Forward commitments

 

 

870,574

 

 

 

 

 

 

553

 

Interest rate-lock commitments

 

 

504,156

 

 

 

6,768

 

 

 

 

Futures contracts

 

 

283,000

 

 

 

315

 

 

 

 

Option contracts

 

 

6,000

 

 

 

29

 

 

 

 

Total

 

$

1,810,484

 

 

$

8,258

 

 

$

1,699

 

 

 

 

June 30, 2018

 

 

 

Notional Amount

 

 

Asset

 

 

Liability

 

Designated as hedging:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

30,000

 

 

$

1,296

 

 

$

 

Total

 

$

30,000

 

 

$

1,296

 

 

$

 

 

 

 

December 31, 2017

 

 

 

Notional Amount

 

 

Asset

 

 

Liability

 

Designated as hedging:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

130,000

 

 

$

1,432

 

 

$

 

Total

 

$

130,000

 

 

$

1,432

 

 

$

 

 

Schedule of Gains (Losses) Included in the Consolidated Statements of Income Related to Derivative Financial Instruments

 

Gains (losses) included in the Consolidated Statements of Income related to the Company’s derivative financial instruments were as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Not designated as hedging instruments (included in mortgage banking income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate lock commitments

 

$

(684

)

 

$

(1,433

)

 

$

2,727

 

 

$

1,509

 

Forward commitments

 

 

635

 

 

 

(3,928

)

 

 

5,953

 

 

 

(7,248

)

Futures contracts

 

 

(1,369

)

 

 

 

 

 

(3,816

)

 

 

 

Options contracts

 

 

(38

)

 

 

 

 

 

5

 

 

 

 

Total

 

$

(1,456

)

 

$

(5,361

)

 

$

4,869

 

 

$

(5,739

)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Designated as hedging:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount of gain (loss) reclassified from other comprehensive

  income and recognized in interest expense on long-term debt

 

$

25

 

 

 

 

 

$

(7

)

 

 

 

 

Schedule of Other Comprehensive Income (Loss), Net of Tax, for Derivative Instruments Designated as Cash Flow Hedges

The following table discloses the amount included in other comprehensive income (loss), net of tax, for derivative instruments designated as cash flow hedges for the periods presented:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Designated as hedging:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount of gain recognized in other comprehensive

   income, net of tax

 

$

196

 

 

 

 

 

$

1,469

 

 

 

 

 

v3.10.0.1
Fair Value of Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Estimated Fair Values and Carrying Values of Financial Instruments

The following table contains the estimated fair values and the related carrying values of the Company's financial instruments. Items which are not financial instruments are not included. Due to the adoption of ASU 2016-01 as of January 1, 2018, the fair value as presented below is measured using the exit price notion in the periods after adoption and may not be comparable with prior periods presented as a result of the change in methodology.

 

 

 

 

 

 

 

Fair Value

 

June 30, 2018

 

Carrying amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

104,417

 

 

$

104,417

 

 

$

 

 

$

 

 

$

104,417

 

Investment securities

 

 

611,435

 

 

 

 

 

 

611,435

 

 

 

 

 

 

611,435

 

Federal Home Loan Bank Stock

 

 

12,641

 

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Loans, net

 

 

3,389,228

 

 

 

 

 

 

 

 

 

3,384,932

 

 

 

3,384,932

 

Loans held for sale

 

 

374,916

 

 

 

 

 

 

374,916

 

 

 

 

 

 

374,916

 

Interest receivable

 

 

12,729

 

 

 

 

 

 

12,729

 

 

 

 

 

 

12,729

 

Mortgage servicing rights

 

 

109,449

 

 

 

 

 

 

 

 

 

109,449

 

 

 

109,449

 

Derivatives

 

 

15,117

 

 

 

 

 

 

15,117

 

 

 

 

 

 

15,117

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Without stated maturities

 

$

3,179,754

 

 

$

3,179,754

 

 

$

 

 

$

 

 

$

3,179,754

 

With stated maturities

 

 

730,109

 

 

 

 

 

 

731,029

 

 

 

 

 

 

731,029

 

Securities sold under agreement to

   repurchase

 

 

15,996

 

 

 

15,996

 

 

 

 

 

 

 

 

 

15,996

 

Short term borrowings

 

 

187,522

 

 

 

187,522

 

 

 

 

 

 

 

 

 

187,522

 

Interest payable

 

 

2,180

 

 

 

631

 

 

 

1,549

 

 

 

 

 

 

2,180

 

Long-term debt

 

 

139,375

 

 

 

 

 

 

138,578

 

 

 

 

 

 

138,578

 

Derivatives

 

 

5,480

 

 

 

 

 

 

5,480

 

 

 

 

 

 

5,480

 

 

 

 

 

 

 

 

 

Fair Value

 

December 31, 2017

 

Carrying amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

119,751

 

 

$

119,751

 

 

$

 

 

$

 

 

$

119,751

 

Investment securities

 

 

543,992

 

 

 

 

 

 

540,388

 

 

 

3,604

 

 

 

543,992

 

Federal Home Loan Bank Stock

 

 

11,412

 

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

Loans, net

 

 

3,142,870

 

 

 

 

 

 

3,064,373

 

 

 

77,027

 

 

 

3,141,400

 

Loans held for sale

 

 

526,185

 

 

 

 

 

 

526,185

 

 

 

 

 

 

526,185

 

Interest receivable

 

 

13,069

 

 

 

 

 

 

13,069

 

 

 

 

 

 

13,069

 

Mortgage servicing rights, net

 

 

76,107

 

 

 

 

 

 

 

 

 

76,107

 

 

 

76,107

 

Derivatives

 

 

9,690

 

 

 

 

 

 

9,690

 

 

 

 

 

 

9,690

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Without stated maturities

 

$

2,976,066

 

 

$

2,976,066

 

 

$

 

 

$

 

 

$

2,976,066

 

With stated maturities

 

 

688,329

 

 

 

 

 

 

682,403

 

 

 

 

 

 

682,403

 

Securities sold under agreement to

   repurchase

 

 

14,293

 

 

 

14,293

 

 

 

 

 

 

 

 

 

14,293

 

Short term borrowings

 

 

190,000

 

 

 

190,000

 

 

 

 

 

 

 

 

 

190,000

 

Interest payable

 

 

1,504

 

 

 

575

 

 

 

929

 

 

 

 

 

 

1,504

 

Long-term debt

 

 

143,302

 

 

 

 

 

 

149,135

 

 

 

 

 

 

149,135

 

Derivatives

 

 

1,699

 

 

 

 

 

 

1,699

 

 

 

 

 

 

1,699

 

 

Balances and Levels of Assets Measured at Fair Value on Recurring Basis

The balances and levels of the assets measured at fair value on a recurring basis at June 30, 2018 are presented in the following tables:

 

At June 30, 2018

 

Quoted prices

in active

markets for

identical assets

(liabilities)

(level 1)

 

 

Significant

other

observable

inputs

(level 2)

 

 

Significant unobservable

inputs

(level 3)

 

 

Total

 

Recurring valuations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency securities

 

$

 

 

$

983

 

 

$

 

 

$

983

 

Mortgage-backed securities

 

 

 

 

 

477,974

 

 

 

 

 

 

477,974

 

Municipals, tax-exempt

 

 

 

 

 

122,247

 

 

 

 

 

 

122,247

 

Treasury securities

 

 

 

 

 

7,156

 

 

 

 

 

 

7,156

 

Equity securities

 

 

 

 

 

3,075

 

 

 

 

 

 

3,075

 

Total

 

$

 

 

$

611,435

 

 

$

 

 

$

611,435

 

Loans held for sale

 

 

 

 

 

374,916

 

 

 

 

 

 

374,916

 

Mortgage servicing rights

 

 

 

 

 

 

 

 

109,449

 

 

 

109,449

 

Derivatives

 

 

 

 

 

15,117

 

 

 

 

 

 

15,117

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives

 

$

 

 

$

5,480

 

 

$

 

 

$

5,480

 

 

The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2017 are presented in the following tables:

 

At December 31, 2017

 

Quoted prices

in active

markets for

identical assets

(liabilities)

(level 1)

 

 

Significant

other

observable

inputs

(level 2)

 

 

Significant unobservable

inputs

(level 3)

 

 

Total

 

Recurring valuations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agency securities

 

$

 

 

$

986

 

 

$

 

 

$

986

 

Mortgage-backed securities

 

 

 

 

 

418,781

 

 

 

 

 

 

418,781

 

Municipals, tax-exempt

 

 

 

 

 

109,251

 

 

 

 

 

 

109,251

 

Treasury securities

 

 

 

 

 

7,252

 

 

 

 

 

 

7,252

 

Equity securities

 

 

 

 

 

4,118

 

 

 

3,604

 

 

 

7,722

 

Total

 

$

 

 

$

540,388

 

 

$

3,604

 

 

$

543,992

 

Loans held for sale

 

 

 

 

 

526,185

 

 

 

 

 

 

526,185

 

Mortgage servicing rights

 

 

 

 

 

 

 

 

76,107

 

 

 

76,107

 

Derivatives

 

 

 

 

 

9,690

 

 

 

 

 

 

9,690

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives

 

$

 

 

$

1,699

 

 

$

 

 

$

1,699

 

 

Balances and Levels of Assets Measured at Fair Value on Non-recurring Basis

The balances and levels of the assets measured at fair value on a non-recurring basis at June 30, 2018 are presented in the following tables:

 

At June 30, 2018

 

Quoted prices

in active

markets for

identical assets

(liabilities)

(level 1)

 

 

Significant

other

observable

inputs

(level 2)

 

 

Significant unobservable

inputs

(level 3)

 

 

Total

 

Non-recurring valuations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned

 

$

 

 

$

 

 

$

798

 

 

$

798

 

Impaired loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

 

 

 

 

 

 

107

 

 

 

107

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family mortgage

 

 

 

 

 

 

 

 

144

 

 

 

144

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

 

 

 

 

 

 

180

 

 

 

180

 

Non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

Consumer and other

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

 

 

$

 

 

$

431

 

 

$

431

 

The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2017 are presented in the following tables:

 

At December 31, 2017

 

Quoted prices

in active

markets for

identical assets

(liabilities)

(level 1)

 

 

Significant

other observable inputs

(level 2)

 

 

Significant unobservable

inputs

(level 3)

 

 

Total

 

Non-recurring valuations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other real estate owned

 

$

 

 

$

 

 

$

13,174

 

 

$

13,174

 

Impaired Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

 

 

 

 

 

 

1,971

 

 

 

1,971

 

Construction

 

 

 

 

 

 

 

 

4,211

 

 

 

4,211

 

Residential real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family mortgage

 

 

 

 

 

 

 

 

21,902

 

 

 

21,902

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

 

 

 

 

 

 

 

10,030

 

 

 

10,030

 

Non-owner occupied

 

 

 

 

 

 

 

 

13,593

 

 

 

13,593

 

Consumer and other

 

 

 

 

 

 

 

 

25,320

 

 

 

25,320

 

Total

 

$

 

 

$

 

 

$

77,027

 

 

$

77,027

 

 

Summary of Changes in Fair Value on Available-for-Sale Securities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs or Level 3 Inputs

The following table summarizes changes in fair value on available-for-sale securities measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, during the three and six months ended June 30, 2018 and 2017.

 

 

 

 

 

 

 

 

 

 

Available-for-sale

securities

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Balance at beginning of period

 

$

 

 

$

4,549

 

 

$

3,604

 

 

$

4,549

 

Reclassification of equity securities without a readily determinable fair value to other assets(1)

 

 

 

 

 

 

 

 

(3,604

)

 

 

 

Balance at end of period

 

$

 

 

$

4,549

 

 

$

 

 

$

4,549

 

(1)

See Note 1, “Basis of Presentation” in the Notes to the consolidated financial statements for additional details regarding the adoption of ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities.

 

Information About Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis

The following table presents information as of June 30, 2018 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis:

 

Financial instrument

 

Fair Value

 

 

Valuation technique

 

Significant Unobservable inputs

 

Range of

inputs

Impaired loans

 

$

431

 

 

Valuation of collateral

 

Discount for comparable sales

 

0%-30%

Other real estate owned

 

$

798

 

 

Appraised value of property less costs to sell

 

Discount for costs to sell

 

0%-15%

 

The following table presents information as of December 31, 2017 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis:

 

Financial instrument

 

Fair Value

 

 

Valuation technique

 

Significant Unobservable inputs

 

Range of

inputs

Impaired loans

 

$

77,027

 

 

Valuation of collateral

 

Discount for comparable sales

 

0%-30%

Other real estate owned

 

$

13,174

 

 

Appraised value of property less costs to sell

 

Discount for costs to sell

 

0%-15%

 

Differences between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value

The following table summarizes the differences between the fair value and the principal balance for loans held for sale measured at fair value as of June 30, 2018 and December 31, 2017:

 

June 30, 2018

 

Aggregate

fair value

 

 

Aggregate

Unpaid

Principal

Balance

 

 

Difference

 

Mortgage loans held for sale measured at fair value

 

$

374,916

 

 

$

364,063

 

 

$

10,853

 

Past due loans of 90 days or more

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans held for sale measured at fair value

 

$

482,089

 

 

$

467,039

 

 

$

15,050

 

Past due loans of 90 days or more

 

 

320

 

 

 

320

 

 

 

 

Nonaccrual loans

 

 

741

 

 

 

741

 

 

 

 

 

v3.10.0.1
Segment Reporting (Tables)
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Schedule of Segment Financial Information

The following tables provides segment financial information for the three and six months ended June 30, 2018 and 2017 follows:

 

Three Months Ended June 30, 2018

 

 

Banking

 

 

Mortgage

 

 

Consolidated

 

Net interest income

 

$

51,669

 

 

$

(152

)

 

$

51,517

 

Provision for loan loss

 

 

1,063

 

 

 

 

 

 

1,063

 

Mortgage banking income

 

 

6,894

 

 

 

23,428

 

 

 

30,322

 

Change in fair value of mortgage servicing rights(1)

 

 

 

 

 

(1,778

)

 

 

(1,778

)

Other noninterest income

 

 

7,164

 

 

 

 

 

 

7,164

 

Depreciation

 

 

990

 

 

 

142

 

 

 

1,132

 

Amortization of intangibles

 

 

802

 

 

 

 

 

 

802

 

Other noninterest mortgage banking expense

 

 

5,649

 

 

 

19,440

 

 

 

25,089

 

Other noninterest expense

 

 

29,280

 

 

 

 

 

 

29,280

 

Income before income taxes

 

 

27,943

 

 

 

1,916

 

 

 

29,859

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

7,794

 

Net income

 

 

 

 

 

 

 

 

 

 

22,065

 

Total assets

 

$

4,443,469

 

 

$

479,780

 

 

$

4,923,249

 

Goodwill

 

 

137,090

 

 

 

100

 

 

 

137,190

 

 

(1)Included in mortgage banking income, net of hedging gains/losses, on the Consolidated Unaudited Statements of Income.

 

 

Three Months Ended June 30, 2017

 

 

Banking

 

 

Mortgage

 

 

Consolidated

 

Net interest income

 

$

29,999

 

 

$

428

 

 

$

30,427

 

Provision for loan loss

 

 

(865

)

 

 

 

 

 

(865

)

Mortgage banking income

 

 

7,118

 

 

 

24,961

 

 

 

32,079

 

Change in fair value of mortgage servicing rights(1)

 

 

 

 

 

(1,840

)

 

 

(1,840

)

Other noninterest income

 

 

5,418

 

 

 

 

 

 

5,418

 

Depreciation

 

 

861

 

 

 

130

 

 

 

991

 

Amortization of intangibles

 

 

123

 

 

 

 

 

 

123

 

Loss on sale of mortgage servicing rights

 

 

 

 

 

249

 

 

 

249

 

Other noninterest mortgage banking expense

 

 

5,368

 

 

 

19,423

 

 

 

24,791

 

Other noninterest expense(2)

 

 

22,982

 

 

 

 

 

 

22,982

 

Income before income taxes

 

 

14,066

 

 

 

3,747

 

 

 

17,813

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

6,574

 

Net income

 

 

 

 

 

 

 

 

 

 

11,239

 

Total assets

 

$

2,878,437

 

 

$

468,133

 

 

$

3,346,570

 

Goodwill

 

 

46,767

 

 

 

100

 

 

 

46,867

 

(1)

Included in mortgage banking income on the Consolidated Unaudited Statements of Income.

(2)

Included $767 in merger and conversion expenses related to the merger with the Clayton Banks.

 

Six Months Ended June 30, 2018

 

 

Banking

 

 

Mortgage

 

 

Consolidated

 

Net interest income

 

$

100,440

 

 

$

(494

)

 

$

99,946

 

Provision for loan loss

 

 

1,380

 

 

 

 

 

 

1,380

 

Mortgage banking income

 

 

13,002

 

 

 

45,504

 

 

 

58,506

 

Net, change in fair value of mortgage servicing rights(1)

 

 

 

 

 

(3,491

)

 

 

(3,491

)

Other noninterest income

 

 

13,968

 

 

 

 

 

 

13,968

 

Depreciation

 

 

1,968

 

 

 

270

 

 

 

2,238

 

Amortization of intangibles

 

 

1,655

 

 

 

 

 

 

1,655

 

Other noninterest mortgage banking expense

 

 

10,746

 

 

 

38,222

 

 

 

48,968

 

Other noninterest expense(2)

 

 

59,593

 

 

 

 

 

 

59,593

 

Income before income taxes

 

 

52,068

 

 

 

3,027

 

 

 

55,095

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

13,276

 

Net income

 

 

 

 

 

 

 

 

 

 

41,819

 

Total assets

 

$

4,443,469

 

 

$

479,780

 

 

$

4,923,249

 

Goodwill

 

 

137,090

 

 

 

100

 

 

 

137,190

 

 

(1)

Included in mortgage banking income on the Consolidated Unaudited Statements of Income.

(2)

Included $1,193 in merger and conversion expenses related to the merger with the Clayton Banks.

 

 

Six Months Ended June 30, 2017

 

 

Banking

 

 

Mortgage

 

 

Consolidated

 

Net interest income

 

$

59,855

 

 

$

823

 

 

$

60,678

 

Provision for loan loss

 

 

(1,122

)

 

 

 

 

 

(1,122

)

Mortgage banking income

 

 

12,784

 

 

 

44,876

 

 

 

57,660

 

Net, change in fair value of mortgage servicing rights(1)

 

 

 

 

 

(2,341

)

 

 

(2,341

)

Other noninterest income

 

 

11,425

 

 

 

 

 

 

11,425

 

Depreciation and amortization

 

 

1,725

 

 

 

268

 

 

 

1,993

 

Amortization of intangibles

 

 

515

 

 

 

 

 

 

515

 

Loss on sale of mortgage servicing rights

 

 

 

 

 

249

 

 

 

249

 

Other noninterest mortgage banking expense

 

 

10,204

 

 

 

36,955

 

 

 

47,159

 

Other noninterest expense(2)

 

 

45,637

 

 

 

 

 

 

45,637

 

Income before income taxes

 

 

27,105

 

 

 

5,886

 

 

 

32,991

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

11,999

 

Net income

 

 

 

 

 

 

 

 

 

 

20,992

 

Total assets

 

$

2,878,437

 

 

$

468,133

 

 

$

3,346,570

 

Goodwill

 

 

46,767

 

 

 

100

 

 

 

46,867

 

(1)

Included in mortgage banking income, net of hedging gains/losses, on the Consolidated Unaudited Statements of Income.

(2)

Included $1,254 in merger and conversion expenses related to the merger with the Clayton Banks.

v3.10.0.1
Minimum Capital Requirements (Tables)
6 Months Ended
Jun. 30, 2018
Banking And Thrift [Abstract]  
Schedule of Actual and Required Capital Amounts and Ratios

Actual and required capital amounts and ratios are presented below at period-end:

 

 

 

Actual

 

 

For capital adequacy purposes

 

 

Minimum Capital

adequacy with

capital buffer

 

 

To be well capitalized

under prompt corrective

action provisions

 

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

524,655

 

 

 

11.9

%

 

$

352,709

 

 

 

8.0

%

 

$

435,375

 

 

 

9.9

%

 

N/A

 

 

N/A

 

FirstBank

 

 

497,123

 

 

 

11.3

%

 

 

351,945

 

 

 

8.0

%

 

 

434,433

 

 

 

9.9

%

 

$

439,932

 

 

 

10.0

%

Tier 1 Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

498,308

 

 

 

11.3

%

 

$

264,588

 

 

 

6.0

%

 

$

347,272

 

 

 

7.9

%

 

N/A

 

 

N/A

 

FirstBank

 

 

470,776

 

 

 

10.7

%

 

 

263,987

 

 

 

6.0

%

 

 

346,482

 

 

 

7.9

%

 

$

263,987

 

 

 

6.0

%

Tier 1 Capital (to average assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

498,308

 

 

 

10.9

%

 

$

182,865

 

 

 

4.0

%

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

FirstBank

 

 

470,776

 

 

 

10.2

%

 

 

184,618

 

 

 

4.0

%

 

N/A

 

 

N/A

 

 

$

230,773

 

 

 

5.0

%

Common Equity Tier 1 Capital

   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

468,308

 

 

 

10.6

%

 

$

198,810

 

 

 

4.5

%

 

$

281,648

 

 

 

6.4

%

 

N/A

 

 

N/A

 

FirstBank

 

 

470,776

 

 

 

10.7

%

 

 

197,990

 

 

 

4.5

%

 

 

280,486

 

 

 

6.4

%

 

$

285,985

 

 

 

6.5

%

 

 

 

Actual

 

 

For capital adequacy purposes

 

 

Minimum Capital

adequacy with

capital buffer

 

 

To be well capitalized

under prompt corrective

action provisions

 

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

496,422

 

 

 

12.0

%

 

$

330,672

 

 

 

8.0

%

 

$

382,340

 

 

 

9.3

%

 

N/A

 

 

N/A

 

FirstBank

 

 

466,102

 

 

 

11.3

%

 

 

329,984

 

 

 

8.0

%

 

 

381,544

 

 

 

9.3

%

 

$

412,480

 

 

 

10.0

%

Tier 1 Capital (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

472,381

 

 

 

11.4

%

 

$

247,969

 

 

 

6.0

%

 

$

299,629

 

 

 

7.3

%

 

N/A

 

 

N/A

 

FirstBank

 

 

442,061

 

 

 

10.7

%

 

 

247,422

 

 

 

6.0

%

 

 

298,968

 

 

 

7.3

%

 

$

247,422

 

 

 

6.0

%

Tier 1 Capital (to average assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

472,381

 

 

 

10.5

%

 

$

180,643

 

 

 

4.0

%

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

FirstBank

 

 

442,061

 

 

 

9.8

%

 

 

180,987

 

 

 

4.0

%

 

N/A

 

 

N/A

 

 

$

226,234

 

 

 

5.0

%

Common Equity Tier 1 Capital

   (to risk-weighted assets)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FB Financial Corporation

 

$

442,381

 

 

 

10.7

%

 

$

185,874

 

 

 

4.5

%

 

$

237,506

 

 

 

5.8

%

 

N/A

 

 

N/A

 

FirstBank

 

 

442,061

 

 

 

10.7

%

 

 

185,567

 

 

 

4.5

%

 

 

237,113

 

 

 

5.8

%

 

$

268,041

 

 

 

6.5

%

 

v3.10.0.1
Stock-Based Compensation (Tables)
6 Months Ended
Jun. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of Vested and Unvested Restricted Stock Units Outstanding

The following table summarizes information about vested and unvested restricted stock units, excluding cash-settled EBI units discussed above, outstanding at June 30, 2018 and 2017:

 

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

 

Restricted Stock

Units

Outstanding

 

 

Weighted

Average Grant

Date

Fair Value

 

 

Restricted Stock

Units

Outstanding

 

Weighted

Average Grant

Date

Fair Value

 

Balance at beginning of period (unvested)

 

 

1,214,325

 

 

$

19.97

 

 

 

1,200,848

 

$

19.00

 

Grants

 

 

110,466

 

 

 

40.02

 

 

 

97,893

 

 

33.88

 

Released and distributed (vested)

 

 

(181,903

)

 

 

22.09

 

 

 

(70,819

)

 

19.00

 

Forfeited/expired

 

 

(7,060

)

 

 

21.81

 

 

 

(1,021

)

 

19.00

 

Balance at end of period (unvested)

 

 

1,135,828

 

 

$

21.59

 

 

 

1,226,901

 

$

19.67

 

 

v3.10.0.1
Related party transactions (Tables)
6 Months Ended
Jun. 30, 2018
Related Party Transactions [Abstract]  
Schedule of Loans Analysis to Executive Officers, Certain Management, Bank Directors and Their Affiliates

An analysis of loans to executive officers, certain management, and directors of the Bank and their affiliates follows:

 

Loans outstanding at January 1, 2018

 

$

21,012

 

New loans and advances

 

 

1,611

 

Repayments

 

 

(4,657

)

Loans outstanding at June 30, 2018

 

$

17,966

 

 

v3.10.0.1
Basis of Presentation - Additional Information (Details)
3 Months Ended 6 Months Ended
Jul. 19, 2018
USD ($)
$ / shares
Jan. 01, 2018
USD ($)
Jun. 30, 2018
USD ($)
$ / shares
shares
Jun. 30, 2018
USD ($)
Branch
$ / shares
Aug. 07, 2018
USD ($)
Dec. 31, 2017
USD ($)
Class Of Stock [Line Items]            
Quarterly dividends declared, per share | $ / shares     $ 0.06 $ 0.06    
ASC 860-50-35, Transfers and Servicing            
Class Of Stock [Line Items]            
Percent of remaining principal allowed to buy back under GNMA optional repurchase programs       100.00%    
ASU 2014-09            
Class Of Stock [Line Items]            
Adjustment to retained earnings   $ 0        
ASU 2016-01            
Class Of Stock [Line Items]            
Adjustment to retained earnings   $ 109,000        
GNMA            
Class Of Stock [Line Items]            
Residential mortgage loans transferred by bank     $ 0 $ 0   $ 43,035,000
Delinquent GNMA loans     $ 52,212,000 $ 52,212,000    
Federal Home Loan Bank of Cincinnati            
Class Of Stock [Line Items]            
Line of credit           $ 300,000,000
Subsequent Event            
Class Of Stock [Line Items]            
Quarterly dividends declared, per share | $ / shares $ 0.06          
Dividends , Date of record Jul. 31, 2018          
Dividends, Date to be paid Aug. 15, 2018          
Dividends, Date declared Jul. 19, 2018          
Dividends declared, Total $ 1,909,000          
Subsequent Event | Federal Home Loan Bank of Cincinnati            
Class Of Stock [Line Items]            
Line of credit         $ 800,000,000  
James W. Ayers            
Class Of Stock [Line Items]            
Percentage of voting power of issued and outstanding common stock     44.00% 44.00%    
Secondary Offering | Common Stock            
Class Of Stock [Line Items]            
Shares issued during period | shares     3,680,000      
FirstBank            
Class Of Stock [Line Items]            
Number of bank branches | Branch       56    
v3.10.0.1
Basis of Presentation - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Basic earnings per share calculation:        
Net income $ 22,065 $ 11,239 $ 41,819 $ 20,992
Dividends paid on and undistributed earnings allocated to participating securities (117)   (223)  
Earnings attributable to common shareholders $ 21,948 $ 11,239 $ 41,596 $ 20,992
Weighted-average basic shares outstanding 30,678,732 25,741,968 30,646,189 24,944,633
Basic earnings per share $ 0.72 $ 0.44 $ 1.36 $ 0.84
Diluted earnings per share:        
Earnings attributable to common shareholders $ 21,948 $ 11,239 $ 41,596 $ 20,992
Weighted-average basic shares outstanding 30,678,732 25,741,968 30,646,189 24,944,633
Weighted-average diluted shares contingently issuable 615,312 559,490 629,657 505,786
Weighted-average diluted shares outstanding 31,294,044 26,301,458 31,275,846 25,450,419
Diluted earnings per share $ 0.70 $ 0.43 $ 1.33 $ 0.82
v3.10.0.1
Mergers and acquisitions - Additional Information (Details)
3 Months Ended 6 Months Ended
Jul. 31, 2017
USD ($)
Feb. 08, 2017
USD ($)
shares
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Dec. 31, 2017
USD ($)
Jul. 30, 2017
BankingOffice
Business Acquisition [Line Items]                
Goodwill     $ 137,190,000 $ 46,867,000 $ 137,190,000 $ 46,867,000 $ 137,190,000  
Merger and conversion       767,000 1,193,000 1,254,000    
Business combination, deferred taxes     19,996,000   $ 19,996,000   $ 17,768,000  
Clayton Banks                
Business Acquisition [Line Items]                
Business acquisition, date of acquisition agreement         Feb. 08, 2017      
Acquisition purchase price $ 236,484,000 $ 236,484,000            
Business acquisition, shares issued | shares   1,521,200            
Cash purchase price 184,200,000 [1] $ 184,200,000            
Number of banking offices | BankingOffice               18
Goodwill 90,323,000              
Merger and conversion     $ 0 $ 767,000 $ 1,193,000 $ 1,254,000    
Business combination, deferred taxes $ 0              
Number of years of deductibility for income tax of the goodwill and core deposit intangible 15 years              
[1] Amount was deposited into an interest-bearing account with the Bank in the name of the Seller as of July 31, 2017.
v3.10.0.1
Mergers and acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - Clayton Banks
$ in Thousands
Jul. 31, 2017
USD ($)
[1]
Assets  
Cash and cash equivalents $ 49,059
Investment securities 59,493
FHLB stock 3,409
Loans 1,059,728
Premises and equipment 18,866
Other real estate owned 6,888
Intangibles, net 12,334
Other assets 5,978
Total assets 1,215,755
Liabilities  
Interest-bearing deposits 670,054
Non-interest bearing deposits 309,464
Borrowings 84,831
Accrued expenses and other liabilities 5,245
Total liabilities 1,069,594
Net assets acquired $ 146,161
[1] Amounts include certain reclassifications of opening balances to conform to the Company’s presentation.
v3.10.0.1
Mergers and acquisitions - Schedule of Consideration Paid and Allocation of Purchase Price to Net Assets Acquired (Details) - USD ($)
$ / shares in Units, $ in Thousands
Jul. 31, 2017
Feb. 08, 2017
Jun. 30, 2018
Dec. 31, 2017
Jun. 30, 2017
Preliminary allocation of consideration paid:          
Goodwill     $ 137,190 $ 137,190 $ 46,867
Total consideration paid $ 236,484        
Clayton Banks          
Equity consideration          
Common stock issued   1,521,200      
Price per share as of July 31, 2017 $ 34.37        
Total equity consideration $ 52,284        
Cash consideration 184,200 [1] $ 184,200      
Total consideration paid 236,484 $ 236,484      
Preliminary allocation of consideration paid:          
Fair value of net assets acquired including identifiable intangible assets [2] 146,161        
Goodwill $ 90,323        
Clayton Banks | Common Stock          
Equity consideration          
Common stock issued 1,521,200        
[1] Amount was deposited into an interest-bearing account with the Bank in the name of the Seller as of July 31, 2017.
[2] Amounts include certain reclassifications of opening balances to conform to the Company’s presentation.
v3.10.0.1
Mergers and acquisitions - Business Acquisition, Pro Forma Information (Details) - Clayton Banks - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2017
Business Acquisition [Line Items]    
Net interest income $ 47,404 $ 94,091
Total revenues 84,545 163,826
Net income $ 17,290 $ 34,018
v3.10.0.1
Investment Securities - Summary of Amortized Cost of Securities and Fair Values (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Schedule Of Available For Sale Securities [Line Items]    
Amortized cost   $ 548,898
Gross unrealized gains   3,067
Gross unrealized losses   (7,973)
Available-for-sale securities, at fair value   543,992
Debt Securities    
Schedule Of Available For Sale Securities [Line Items]    
Amortized cost $ 625,672 541,028
Gross unrealized gains 1,641 3,066
Gross unrealized losses (18,953) (7,824)
Available-for-sale securities, at fair value 608,360 536,270
Debt Securities | U.S. Government Agency Securities    
Schedule Of Available For Sale Securities [Line Items]    
Amortized cost 999 999
Gross unrealized losses (16) (13)
Available-for-sale securities, at fair value 983 986
Debt Securities | Mortgage-backed Securities - Residential    
Schedule Of Available For Sale Securities [Line Items]    
Amortized cost 494,599 425,557
Gross unrealized gains 169 374
Gross unrealized losses (16,794) (7,150)
Available-for-sale securities, at fair value 477,974 418,781
Debt Securities | Municipals, Tax Exempt    
Schedule Of Available For Sale Securities [Line Items]    
Amortized cost 122,710 107,127
Gross unrealized gains 1,472 2,692
Gross unrealized losses (1,935) (568)
Available-for-sale securities, at fair value 122,247 109,251
Debt Securities | Treasury Securities    
Schedule Of Available For Sale Securities [Line Items]    
Amortized cost 7,364 7,345
Gross unrealized losses (208) (93)
Available-for-sale securities, at fair value $ 7,156 7,252
Equity and Other Securities    
Schedule Of Available For Sale Securities [Line Items]    
Amortized cost   7,870
Gross unrealized gains   1
Gross unrealized losses   (149)
Available-for-sale securities, at fair value   $ 7,722
v3.10.0.1
Investment Securities - Additional Information (Details)
3 Months Ended 6 Months Ended
Jan. 01, 2018
USD ($)
Jun. 30, 2018
USD ($)
security
Jun. 30, 2017
USD ($)
Jun. 30, 2018
USD ($)
security
Jun. 30, 2017
USD ($)
Dec. 31, 2017
USD ($)
security
Schedule Of Available For Sale Securities [Line Items]            
Equity securities, at fair value   $ 3,075,000   $ 3,075,000   $ 7,722,000
Net loss on changes in fair value of securities   43,000   81,000    
Securities pledged, carrying amount   433,780,000   $ 433,780,000   $ 337,604,000
Recognized gains on early call of available-for-sale securities   $ 1,000     $ 1,000  
Number of securities in securities portfolio | security   329   329   294
Number of securities in securities portfolio, unrealized loss position | security   181   181   124
Other-than-temporary impairment recorded by the company   $ 0 $ 0 $ 0 $ 0  
ASU 2016-01            
Schedule Of Available For Sale Securities [Line Items]            
Other assets reclassified from other securities $ 3,604,000          
Other securities reclassified to other assets $ 3,604,000          
v3.10.0.1
Investment Securities - Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Schedule Of Available For Sale Securities [Line Items]    
Amortized cost, Due in one year or less $ 11,991 $ 905
Amortized cost, Due in one to five years 20,026 28,332
Amortized cost, Due in five to ten years 18,795 19,218
Amortized cost, Due in over ten years 80,261 67,016
Amortized cost, Total 131,073 115,471
Total debt securities, Amortized cost 625,672 541,028
Fair value, Due in one year or less 12,195 925
Fair value, Due in one to five years 20,083 28,878
Fair value, Due in five to ten years 18,769 19,588
Fair value, Due in over ten years 79,339 68,098
Fair value, Total 130,386 117,489
Available-for-sale debt securities, at fair value 608,360 536,270
Mortgage-backed Securities - Residential    
Schedule Of Available For Sale Securities [Line Items]    
Total debt securities, Amortized cost 494,599 425,557
Available-for-sale debt securities, at fair value $ 477,974 $ 418,781
v3.10.0.1
Investment Securities - Summary of Sales of Available-for-Sale Securities (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Available For Sale Securities Gross Realized Gain Loss [Abstract]      
Proceeds from sales $ 12,158 $ 221 $ 12,158
Gross realized gains 77   77
Gross realized losses $ 48 $ 9 $ 48
v3.10.0.1
Investment Securities - Schedule of Gross Unrealized Losses (Details) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Schedule Of Available For Sale Securities [Line Items]    
Fair Value, Less than 12 months   $ 122,217
Unrealized Loss, Less than 12 months   1,174
Fair Value, 12 months or more   314,406
Unrealized Loss, 12 months or more   6,799
Fair Value, Total   436,623
Unrealized Losses, Total   7,973
Debt Securities    
Schedule Of Available For Sale Securities [Line Items]    
Fair Value, Less than 12 months $ 225,549 122,217
Unrealized Loss, Less than 12 months 5,440 1,174
Fair Value, 12 months or more 281,816 311,356
Unrealized Loss, 12 months or more 13,513 6,650
Fair Value, Total 507,365 433,573
Unrealized Losses, Total 18,953 7,824
Debt Securities | U.S. Government Agency Securities    
Schedule Of Available For Sale Securities [Line Items]    
Fair Value, 12 months or more 983 986
Unrealized Loss, 12 months or more 16 13
Fair Value, Total 983 986
Unrealized Losses, Total 16 13
Debt Securities | Mortgage-backed Securities - Residential    
Schedule Of Available For Sale Securities [Line Items]    
Fair Value, Less than 12 months 185,980 107,611
Unrealized Loss, Less than 12 months 4,472 980
Fair Value, 12 months or more 261,675 290,258
Unrealized Loss, 12 months or more 12,322 6,170
Fair Value, Total 447,655 397,869
Unrealized Losses, Total 16,794 7,150
Debt Securities | Municipals, Tax Exempt    
Schedule Of Available For Sale Securities [Line Items]    
Fair Value, Less than 12 months 32,413 7,354
Unrealized Loss, Less than 12 months 760 101
Fair Value, 12 months or more 19,158 20,112
Unrealized Loss, 12 months or more 1,175 467
Fair Value, Total 51,571 27,466
Unrealized Losses, Total 1,935 568
Debt Securities | Treasury Securities    
Schedule Of Available For Sale Securities [Line Items]    
Fair Value, Less than 12 months 7,156 7,252
Unrealized Loss, Less than 12 months 208 93
Fair Value, Total 7,156 7,252
Unrealized Losses, Total $ 208 93
Equity and Other Securities    
Schedule Of Available For Sale Securities [Line Items]    
Fair Value, 12 months or more   3,050
Unrealized Loss, 12 months or more   149
Fair Value, Total   3,050
Unrealized Losses, Total   $ 149
v3.10.0.1
Loans and Allowance for Loan Losses - Loans Outstanding by Major Lending Classification (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Financing Receivable Recorded Investment Past Due [Line Items]            
Gross loans $ 3,415,575   $ 3,166,911      
Less: Allowance for loan losses (26,347) $ (24,406) (24,041) $ (23,247) $ (22,898) $ (21,747)
Net loans 3,389,228   3,142,870      
Commercial and Industrial            
Financing Receivable Recorded Investment Past Due [Line Items]            
Gross loans 813,054   715,075      
Less: Allowance for loan losses (4,747) (4,578) (4,461) (5,440) (5,402) (5,309)
Construction            
Financing Receivable Recorded Investment Past Due [Line Items]            
Gross loans 522,471   448,326      
Less: Allowance for loan losses (9,023) (7,866) (7,135) (5,579) (5,598) (4,940)
Residential Real Estate | 1-to-4 Family Mortgage            
Financing Receivable Recorded Investment Past Due [Line Items]            
Gross loans 528,158   480,989      
Less: Allowance for loan losses (3,378) (3,122) (3,197) (2,974) (2,896) (3,197)
Residential Real Estate | Residential Line of Credit            
Financing Receivable Recorded Investment Past Due [Line Items]            
Gross loans 208,668   194,986      
Less: Allowance for loan losses (795) (1,165) (944) (1,445) (1,514) (1,613)
Residential Real Estate | Multi-Family Mortgage            
Financing Receivable Recorded Investment Past Due [Line Items]            
Gross loans 57,344   62,374      
Less: Allowance for loan losses (391) (449) (434) (513) (508) (504)
Commercial Real Estate | Owner Occupied            
Financing Receivable Recorded Investment Past Due [Line Items]            
Gross loans 470,872   495,872      
Less: Allowance for loan losses (3,290) (3,014) (3,558) (3,983) (3,387) (3,302)
Commercial Real Estate | Non-Owner Occupied            
Financing Receivable Recorded Investment Past Due [Line Items]            
Gross loans 600,629   551,588      
Less: Allowance for loan losses (3,272) (2,753) (2,817) (2,452) (2,660) (2,019)
Consumer and Other            
Financing Receivable Recorded Investment Past Due [Line Items]            
Gross loans 214,379   217,701      
Less: Allowance for loan losses $ (1,451) $ (1,459) $ (1,495) $ (861) $ (933) $ (863)
v3.10.0.1
Loans and Allowance for Loan Losses - Additional Information (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Financing Receivable Recorded Investment Past Due [Line Items]          
Carrying value of PCI loans $ 78,313,000   $ 78,313,000   $ 88,835,000
Accretion of interest income     3,615,000 $ 848,000  
Non-accrual loans 3,000,000   3,000,000   3,205,000
Recorded investment in troubled debt restructurings 8,603,000   8,603,000   8,604,000
Allocation to specific reserves 90,000   90,000   172,000
Commitments to lend additional amounts to customers 4,000   4,000   2,000
Payment default for loans modified as troubled debt restructurings   $ 0 0 0  
Purchased Credit Impaired          
Financing Receivable Recorded Investment Past Due [Line Items]          
Carrying value of PCI loans 78,313,000   78,313,000   88,835,000
Purchase accounting liquidity discount     4,212,000    
Purchase accounting nonaccretable credit discount     5,236,000    
Accretion of interest income 2,639,000 589,000 4,840,000 1,612,000  
Total purchase accounting contribution through accretion for purchased loans 1,928,000 $ 848,000 3,615,000 $ 2,008,000  
Non-accrual loans 0   0   0
Non-Purchased Credit Impaired          
Financing Receivable Recorded Investment Past Due [Line Items]          
Purchase accounting liquidity discount     3,018,000    
Purchase accounting accretable credit discount     9,337,000    
Federal Reserve | Borrower in Custody Program          
Financing Receivable Recorded Investment Past Due [Line Items]          
Gross loans 1,218,505,000   1,218,505,000   724,312,000
Federal Home Loan Bank of Cincinnati | Qualifying Residential Mortgage Loans          
Financing Receivable Recorded Investment Past Due [Line Items]          
Gross loans 598,522,000   598,522,000   761,197,000
Federal Home Loan Bank of Cincinnati | Qualifying Commercial Mortgage Loans          
Financing Receivable Recorded Investment Past Due [Line Items]          
Gross loans $ 539,621,000   $ 539,621,000   $ 207,370,000
v3.10.0.1
Loans and Allowance for Loan Losses - Changes in Accretable Yield on Purchase Credit Impaired Loans (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Accounts Notes And Loans Receivable [Line Items]        
Purchased Credit Impaired Accretable yield, Accretion     $ 3,615 $ 848
Purchased Credit Impaired        
Accounts Notes And Loans Receivable [Line Items]        
Purchased Credit Impaired Accretable yield, Beginning balance $ (16,955) $ (2,142) (17,682) (2,444)
Purchased Credit Impaired Accretable yield, Principal reductions/ pay-offs (2,158) (292) (3,452) (990)
Purchased Credit Impaired Accretable yield, Recoveries       (23)
Purchased Credit Impaired Accretable yield, Accretion 2,639 589 4,840 1,612
Purchased Credit Impaired Accretable yield, Other changes (3,695)   (3,875)  
Purchased Credit Impaired Accretable yield, Ending balance $ (20,169) $ (1,845) $ (20,169) $ (1,845)
v3.10.0.1
Loans and Allowance for Loan Losses - Allowance for Loan Losses by Portfolio Segment and Related Investment in Loans Net of Unearned Interest (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Accounts Notes And Loans Receivable [Line Items]        
Beginning balance $ 24,406 $ 22,898 $ 24,041 $ 21,747
Provision for loan losses 1,063 (865) 1,380 (1,122)
Recoveries of loans previously charged-off 1,299 2,005 2,008 3,855
Loans charged off (421) (791) (1,082) (1,233)
Ending balance 26,347 23,247 26,347 23,247
Commercial and Industrial        
Accounts Notes And Loans Receivable [Line Items]        
Beginning balance 4,578 5,402 4,461 5,309
Provision for loan losses 39 (1,342) 241 (1,163)
Recoveries of loans previously charged-off 135 1,511 270 1,594
Loans charged off (5) (131) (225) (300)
Ending balance 4,747 5,440 4,747 5,440
Construction        
Accounts Notes And Loans Receivable [Line Items]        
Beginning balance 7,866 5,598 7,135 4,940
Provision for loan losses 310 (48) 789 587
Recoveries of loans previously charged-off 862 29 1,114 58
Loans charged off (15)   (15) (6)
Ending balance 9,023 5,579 9,023 5,579
Residential Real Estate | 1-to-4 Family Mortgage        
Accounts Notes And Loans Receivable [Line Items]        
Beginning balance 3,122 2,896 3,197 3,197
Provision for loan losses 218 99 188 (140)
Recoveries of loans previously charged-off 43 14 58 40
Loans charged off (5) (35) (65) (123)
Ending balance 3,378 2,974 3,378 2,974
Residential Real Estate | Residential Line of Credit        
Accounts Notes And Loans Receivable [Line Items]        
Beginning balance 1,165 1,514 944 1,613
Provision for loan losses (414) (29) (200) (184)
Recoveries of loans previously charged-off 44 155 71 211
Loans charged off   (195) (20) (195)
Ending balance 795 1,445 795 1,445
Residential Real Estate | Multi-Family Mortgage        
Accounts Notes And Loans Receivable [Line Items]        
Beginning balance 449 508 434 504
Provision for loan losses (58) 5 (43) 9
Ending balance 391 513 391 513
Commercial Real Estate | Owner Occupied        
Accounts Notes And Loans Receivable [Line Items]        
Beginning balance 3,014 3,387 3,558 3,302
Provision for loan losses 168 585 (399) 666
Recoveries of loans previously charged-off 108 11 131 15
Ending balance 3,290 3,983 3,290 3,983
Commercial Real Estate | Non-Owner Occupied        
Accounts Notes And Loans Receivable [Line Items]        
Beginning balance 2,753 2,660 2,817 2,019
Provision for loan losses 519 (210) 404 (1,208)
Recoveries of loans previously charged-off   2 51 1,641
Ending balance 3,272 2,452 3,272 2,452
Consumer and Other        
Accounts Notes And Loans Receivable [Line Items]        
Beginning balance 1,459 933 1,495 863
Provision for loan losses 281 75 400 311
Recoveries of loans previously charged-off 107 283 313 296
Loans charged off (396) (430) (757) (609)
Ending balance $ 1,451 $ 861 $ 1,451 $ 861
v3.10.0.1
Loans and Allowance for Loan Losses - Allocation of Allowance for Loan Losses by Loan Category Broken Out Between Loans Individually Evaluated for Impairment and Collectively Evaluated for Impairment (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Accounts Notes And Loans Receivable [Line Items]            
Individually evaluated for impairment $ 185   $ 191      
Collectively evaluated for impairment 25,479   23,850      
Acquired with deteriorated credit quality 683          
Ending balance 26,347 $ 24,406 24,041 $ 23,247 $ 22,898 $ 21,747
Commercial and Industrial            
Accounts Notes And Loans Receivable [Line Items]            
Individually evaluated for impairment 49   20      
Collectively evaluated for impairment 4,685   4,441      
Acquired with deteriorated credit quality 13          
Ending balance 4,747 4,578 4,461 5,440 5,402 5,309
Construction            
Accounts Notes And Loans Receivable [Line Items]            
Collectively evaluated for impairment 8,998   7,135      
Acquired with deteriorated credit quality 25          
Ending balance 9,023 7,866 7,135 5,579 5,598 4,940
Residential Real Estate | 1-to-4 Family Mortgage            
Accounts Notes And Loans Receivable [Line Items]            
Individually evaluated for impairment 12   18      
Collectively evaluated for impairment 3,227   3,179      
Acquired with deteriorated credit quality 139          
Ending balance 3,378 3,122 3,197 2,974 2,896 3,197
Residential Real Estate | Residential Line of Credit            
Accounts Notes And Loans Receivable [Line Items]            
Collectively evaluated for impairment 795   944      
Ending balance 795 1,165 944 1,445 1,514 1,613
Residential Real Estate | Multi-Family Mortgage            
Accounts Notes And Loans Receivable [Line Items]            
Collectively evaluated for impairment 391   434      
Ending balance 391 449 434 513 508 504
Commercial Real Estate | Owner Occupied            
Accounts Notes And Loans Receivable [Line Items]            
Individually evaluated for impairment 124   120      
Collectively evaluated for impairment 3,082   3,438      
Acquired with deteriorated credit quality 84          
Ending balance 3,290 3,014 3,558 3,983 3,387 3,302
Commercial Real Estate | Non-Owner Occupied            
Accounts Notes And Loans Receivable [Line Items]            
Individually evaluated for impairment     33      
Collectively evaluated for impairment 2,894   2,784      
Acquired with deteriorated credit quality 378          
Ending balance 3,272 2,753 2,817 2,452 2,660 2,019
Consumer and Other            
Accounts Notes And Loans Receivable [Line Items]            
Collectively evaluated for impairment 1,407   1,495      
Acquired with deteriorated credit quality 44          
Ending balance $ 1,451 $ 1,459 $ 1,495 $ 861 $ 933 $ 863
v3.10.0.1
Loans and Allowance for Loan Losses - Amount of Loans by Loan Category Broken Between Loans Individually and Collectively Evaluated for Impairment and Acquired with Deteriorated Credit Quality (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Accounts Notes And Loans Receivable [Line Items]    
Individually evaluated for impairment $ 9,263 $ 9,373
Collectively evaluated for impairment 3,327,999 3,068,703
Acquired with deteriorated credit quality 78,313 88,835
Gross loans 3,415,575 3,166,911
Commercial and Industrial    
Accounts Notes And Loans Receivable [Line Items]    
Individually evaluated for impairment 2,186 1,579
Collectively evaluated for impairment 809,102 711,352
Acquired with deteriorated credit quality 1,766 2,144
Gross loans 813,054 715,075
Construction    
Accounts Notes And Loans Receivable [Line Items]    
Individually evaluated for impairment 1,281 1,289
Collectively evaluated for impairment 514,129 439,309
Acquired with deteriorated credit quality 7,061 7,728
Gross loans 522,471 448,326
Residential Real Estate | 1-to-4 Family Mortgage    
Accounts Notes And Loans Receivable [Line Items]    
Individually evaluated for impairment 1,503 1,262
Collectively evaluated for impairment 505,643 456,229
Acquired with deteriorated credit quality 21,012 23,498
Gross loans 528,158 480,989
Residential Real Estate | Residential Line of Credit    
Accounts Notes And Loans Receivable [Line Items]    
Collectively evaluated for impairment 208,668 194,986
Gross loans 208,668 194,986
Residential Real Estate | Multi-Family Mortgage    
Accounts Notes And Loans Receivable [Line Items]    
Individually evaluated for impairment 951 978
Collectively evaluated for impairment 56,377 61,376
Acquired with deteriorated credit quality 16 20
Gross loans 57,344 62,374
Commercial Real Estate | Owner Occupied    
Accounts Notes And Loans Receivable [Line Items]    
Individually evaluated for impairment 2,266 2,520
Collectively evaluated for impairment 460,281 481,390
Acquired with deteriorated credit quality 8,325 11,962
Gross loans 470,872 495,872
Commercial Real Estate | Non-Owner Occupied    
Accounts Notes And Loans Receivable [Line Items]    
Individually evaluated for impairment 1,049 1,720
Collectively evaluated for impairment 581,531 531,704
Acquired with deteriorated credit quality 18,049 18,164
Gross loans 600,629 551,588
Consumer and Other    
Accounts Notes And Loans Receivable [Line Items]    
Individually evaluated for impairment 27 25
Collectively evaluated for impairment 192,268 192,357
Acquired with deteriorated credit quality 22,084 25,319
Gross loans $ 214,379 $ 217,701
v3.10.0.1
Loans and Allowance for Loan Losses - Credit Quality Indicators by Portfolio Class (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans $ 3,337,262 $ 3,078,076
Purchased credit impaired loans 78,313 88,835
Total loans 3,415,575 3,166,911
Pass    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 3,183,477 2,940,174
Total loans 3,183,477 2,940,174
Watch    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 122,964 114,401
Purchased credit impaired loans 50,667 56,848
Total loans 173,631 171,249
Substandard    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 30,821 23,501
Purchased credit impaired loans 27,646 31,987
Total loans 58,467 55,488
Commercial and Industrial    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 811,288 712,931
Purchased credit impaired loans 1,766 2,144
Total loans 813,054 715,075
Commercial and Industrial | Pass    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 746,253 657,595
Commercial and Industrial | Watch    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 59,476 50,946
Purchased credit impaired loans 1,187 1,499
Commercial and Industrial | Substandard    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 5,559 4,390
Purchased credit impaired loans 579 645
Construction    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 515,410 440,598
Purchased credit impaired loans 7,061 7,728
Total loans 522,471 448,326
Construction | Pass    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 499,370 431,242
Construction | Watch    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 14,278 7,388
Purchased credit impaired loans 3,332 3,324
Construction | Substandard    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 1,762 1,968
Purchased credit impaired loans 3,729 4,404
Residential Real Estate | 1-to-4 Family Mortgage    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 507,146 457,491
Purchased credit impaired loans 21,012 23,498
Total loans 528,158 480,989
Residential Real Estate | Residential Line of Credit    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 208,668 194,986
Total loans 208,668 194,986
Residential Real Estate | Multi-Family Mortgage    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 57,328 62,354
Purchased credit impaired loans 16 20
Total loans 57,344 62,374
Residential Real Estate | Pass | 1-to-4 Family Mortgage    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 490,856 440,202
Residential Real Estate | Pass | Residential Line of Credit    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 205,614 192,427
Residential Real Estate | Pass | Multi-Family Mortgage    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 56,245 61,234
Residential Real Estate | Watch | 1-to-4 Family Mortgage    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 8,625 9,522
Purchased credit impaired loans 16,721 20,284
Residential Real Estate | Watch | Residential Line of Credit    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 1,632 1,184
Residential Real Estate | Watch | Multi-Family Mortgage    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 133 142
Residential Real Estate | Substandard | 1-to-4 Family Mortgage    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 7,665 7,767
Purchased credit impaired loans 4,291 3,214
Residential Real Estate | Substandard | Residential Line of Credit    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 1,422 1,375
Residential Real Estate | Substandard | Multi-Family Mortgage    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 950 978
Purchased credit impaired loans 16 20
Commercial Real Estate | Owner Occupied    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 462,547 483,910
Purchased credit impaired loans 8,325 11,962
Total loans 470,872 495,872
Commercial Real Estate | Non-Owner Occupied    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 582,580 533,424
Purchased credit impaired loans 18,049 18,164
Total loans 600,629 551,588
Commercial Real Estate | Pass | Owner Occupied    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 434,025 451,140
Commercial Real Estate | Pass | Non-Owner Occupied    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 565,195 517,253
Commercial Real Estate | Watch | Owner Occupied    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 20,435 28,308
Purchased credit impaired loans 4,488 4,631
Commercial Real Estate | Watch | Non-Owner Occupied    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 16,096 14,199
Purchased credit impaired loans 7,465 7,359
Commercial Real Estate | Substandard | Owner Occupied    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 8,087 4,462
Purchased credit impaired loans 3,837 7,331
Commercial Real Estate | Substandard | Non-Owner Occupied    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 1,289 1,972
Purchased credit impaired loans 10,584 10,805
Consumer and Other    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 192,295 192,382
Purchased credit impaired loans 22,084 25,319
Total loans 214,379 217,701
Consumer and Other | Pass    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 185,919 189,081
Consumer and Other | Watch    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 2,289 2,712
Purchased credit impaired loans 17,474 19,751
Consumer and Other | Substandard    
Financing Receivable Allowance For Credit Losses [Line Items]    
Loans, excluding purchased credit impaired loans 4,087 589
Purchased credit impaired loans $ 4,610 $ 5,568
v3.10.0.1
Loans and Allowance for Loan Losses - Past Due Loans (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans $ 3,415,575 $ 3,166,911
Purchased Credit Impaired    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 78,313 88,835
Non Accruing    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 7,174 8,101
30-89 Days Past Due    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 10,994 15,063
90 Days or More and Accruing Interest    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 1,639 1,996
Financing Receivables Current    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 3,317,455 3,052,916
Commercial and Industrial    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 813,054 715,075
Commercial and Industrial | Purchased Credit Impaired    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 1,766 2,144
Commercial and Industrial | Non Accruing    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 707 533
Commercial and Industrial | 30-89 Days Past Due    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 3,138 5,859
Commercial and Industrial | 90 Days or More and Accruing Interest    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 145 90
Commercial and Industrial | Financing Receivables Current    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 807,298 706,449
Construction    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 522,471 448,326
Construction | Purchased Credit Impaired    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 7,061 7,728
Construction | Non Accruing    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 328 300
Construction | 30-89 Days Past Due    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 850 1,412
Construction | 90 Days or More and Accruing Interest    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 193 241
Construction | Financing Receivables Current    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 514,039 438,645
Residential Real Estate | 1-to-4 Family Mortgage    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 528,158 480,989
Residential Real Estate | 1-to-4 Family Mortgage | Purchased Credit Impaired    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 21,012 23,498
Residential Real Estate | 1-to-4 Family Mortgage | Non Accruing    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 2,293 2,548
Residential Real Estate | Residential Line of Credit    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 208,668 194,986
Residential Real Estate | Residential Line of Credit | Non Accruing    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 507 699
Residential Real Estate | Multi-Family Mortgage    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 57,344 62,374
Residential Real Estate | Multi-Family Mortgage | Purchased Credit Impaired    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 16 20
Residential Real Estate | 30-89 Days Past Due | 1-to-4 Family Mortgage    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 3,605 4,678
Residential Real Estate | 30-89 Days Past Due | Residential Line of Credit    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 1,345 527
Residential Real Estate | 90 Days or More and Accruing Interest | 1-to-4 Family Mortgage    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 859 956
Residential Real Estate | 90 Days or More and Accruing Interest | Residential Line of Credit    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 254 134
Residential Real Estate | Financing Receivables Current | 1-to-4 Family Mortgage    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 500,389 449,309
Residential Real Estate | Financing Receivables Current | Residential Line of Credit    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 206,562 193,626
Residential Real Estate | Financing Receivables Current | Multi-Family Mortgage    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 57,328 62,354
Commercial Real Estate | Owner Occupied    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 470,872 495,872
Commercial Real Estate | Owner Occupied | Purchased Credit Impaired    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 8,325 11,962
Commercial Real Estate | Owner Occupied | Non Accruing    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 2,052 2,582
Commercial Real Estate | Non-Owner Occupied    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 600,629 551,588
Commercial Real Estate | Non-Owner Occupied | Purchased Credit Impaired    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 18,049 18,164
Commercial Real Estate | Non-Owner Occupied | Non Accruing    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 1,212 1,371
Commercial Real Estate | 30-89 Days Past Due | Owner Occupied    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 249 521
Commercial Real Estate | 30-89 Days Past Due | Non-Owner Occupied    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans   121
Commercial Real Estate | 90 Days or More and Accruing Interest | Owner Occupied    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans   358
Commercial Real Estate | Financing Receivables Current | Owner Occupied    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 460,246 480,449
Commercial Real Estate | Financing Receivables Current | Non-Owner Occupied    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 581,368 531,932
Consumer and Other    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 214,379 217,701
Consumer and Other | Purchased Credit Impaired    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 22,084 25,319
Consumer and Other | Non Accruing    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 75 68
Consumer and Other | 30-89 Days Past Due    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 1,807 1,945
Consumer and Other | 90 Days or More and Accruing Interest    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans 188 217
Consumer and Other | Financing Receivables Current    
Financing Receivable Recorded Investment Past Due [Line Items]    
Loans $ 190,225 $ 190,152
v3.10.0.1
Loans and Allowance for Loan Losses - Impaired Loans Recognized, Segregated by Class (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Financing Receivable Impaired [Line Items]          
Impaired loans with related allowance, Recorded investment $ 1,094   $ 1,094   $ 1,235
Impaired loans with related allowance, Unpaid principal 1,460   1,460   1,821
Impaired loans with related allowance, Related allowance 185   185   191
Impaired loan with no related allowance, Recorded investment 8,169   8,169   8,138
Impaired loan with no related allowance, Unpaid principal 9,821   9,821   9,451
Total impaired loans, Recorded investment 9,263   9,263   9,373
Total impaired loans, Unpaid principal 11,281   11,281   11,272
Impaired loan with no related allowance, Average recorded investment 8,110 $ 7,363 8,155 $ 8,741  
Impaired loan with no related allowance, Interest income recognized (cash basis) 121 66 231 147  
Impaired loans with related allowance, Average recorded investment 1,033 1,957 1,165 2,344  
Impaired loans with related allowance, Interest income recognized (cash basis) 25 15 36 32  
Total impaired loans, Average recorded investment 9,143 9,320 9,320 11,085  
Total impaired loans, Interest income recognized (cash basis) 146 81 267 179  
Commercial and Industrial          
Financing Receivable Impaired [Line Items]          
Impaired loans with related allowance, Recorded investment 153   153   53
Impaired loans with related allowance, Unpaid principal 153   153   53
Impaired loans with related allowance, Related allowance 49   49   20
Impaired loan with no related allowance, Recorded investment 2,033   2,033   1,526
Impaired loan with no related allowance, Unpaid principal 2,387   2,387   1,570
Impaired loan with no related allowance, Average recorded investment 1,683 519 1,780 557  
Impaired loan with no related allowance, Interest income recognized (cash basis) 43 7 59 16  
Impaired loans with related allowance, Average recorded investment 103 729 103 792  
Impaired loans with related allowance, Interest income recognized (cash basis) 2 5 3 10  
Residential Real Estate | 1-to-4 Family Mortgage          
Financing Receivable Impaired [Line Items]          
Impaired loans with related allowance, Recorded investment 187   187   194
Impaired loans with related allowance, Unpaid principal 488   488   495
Impaired loans with related allowance, Related allowance 12   12   18
Impaired loan with no related allowance, Recorded investment 1,316   1,316   1,068
Impaired loan with no related allowance, Unpaid principal 1,322   1,322   1,072
Impaired loan with no related allowance, Average recorded investment 1,309 2,106 1,192 2,232  
Impaired loan with no related allowance, Interest income recognized (cash basis) 31 15 44 32  
Impaired loans with related allowance, Average recorded investment 189 98 191 100  
Impaired loans with related allowance, Interest income recognized (cash basis) 2   4    
Residential Real Estate | Multi-Family Mortgage          
Financing Receivable Impaired [Line Items]          
Impaired loan with no related allowance, Recorded investment 951   951   978
Impaired loan with no related allowance, Unpaid principal 951   951   978
Impaired loan with no related allowance, Average recorded investment 958 1,008 965 1,014  
Impaired loan with no related allowance, Interest income recognized (cash basis) 12 12 24 23  
Residential Real Estate | Residential Line of Credit          
Financing Receivable Impaired [Line Items]          
Impaired loan with no related allowance, Average recorded investment       156  
Commercial Real Estate | Owner Occupied          
Financing Receivable Impaired [Line Items]          
Impaired loans with related allowance, Recorded investment 754   754   844
Impaired loans with related allowance, Unpaid principal 819   819   1,123
Impaired loans with related allowance, Related allowance 124   124   120
Impaired loan with no related allowance, Recorded investment 1,512   1,512   1,676
Impaired loan with no related allowance, Unpaid principal 2,039   2,039   2,168
Impaired loan with no related allowance, Average recorded investment 1,539 1,801 1,594 1,941  
Impaired loan with no related allowance, Interest income recognized (cash basis) 28 23 60 61  
Impaired loans with related allowance, Average recorded investment 670 616 799 622  
Impaired loans with related allowance, Interest income recognized (cash basis) 21 8 27 20  
Commercial Real Estate | Non-Owner Occupied          
Financing Receivable Impaired [Line Items]          
Impaired loans with related allowance, Recorded investment         144
Impaired loans with related allowance, Unpaid principal         150
Impaired loans with related allowance, Related allowance         33
Impaired loan with no related allowance, Recorded investment 1,049   1,049   1,576
Impaired loan with no related allowance, Unpaid principal 1,781   1,781   2,325
Impaired loan with no related allowance, Average recorded investment 1,310 1,602 1,313 1,323  
Impaired loan with no related allowance, Interest income recognized (cash basis)   5 7 5  
Impaired loans with related allowance, Average recorded investment 71 514 72 829  
Impaired loans with related allowance, Interest income recognized (cash basis)   2 2 2  
Construction          
Financing Receivable Impaired [Line Items]          
Impaired loan with no related allowance, Recorded investment 1,281   1,281   1,289
Impaired loan with no related allowance, Unpaid principal 1,314   1,314   1,313
Impaired loan with no related allowance, Average recorded investment 1,283 302 1,285 1,493  
Impaired loan with no related allowance, Interest income recognized (cash basis) 6 4 36 9  
Consumer and Other          
Financing Receivable Impaired [Line Items]          
Impaired loan with no related allowance, Recorded investment 27   27   25
Impaired loan with no related allowance, Unpaid principal 27   27   $ 25
Impaired loan with no related allowance, Average recorded investment 28 $ 25 26 25  
Impaired loan with no related allowance, Interest income recognized (cash basis) $ 1   $ 1 1  
Impaired loans with related allowance, Average recorded investment       $ 1  
v3.10.0.1
Loans and Allowance for Loan Losses - Financial Effect of TDRs (Details)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
USD ($)
loan
Jun. 30, 2018
USD ($)
loan
Jun. 30, 2017
USD ($)
loan
Financing Receivable Modifications [Line Items]      
Number of loans | loan 2 4 4
Pre-modification outstanding recorded investment $ 887 $ 1,141 $ 1,093
Post-modification outstanding recorded investment $ 887 $ 1,141 $ 1,093
Commercial and Industrial      
Financing Receivable Modifications [Line Items]      
Number of loans | loan 2 2 1
Pre-modification outstanding recorded investment $ 887 $ 887 $ 5
Post-modification outstanding recorded investment $ 887 $ 887 $ 5
Residential Real Estate | 1-to-4 Family Mortgage      
Financing Receivable Modifications [Line Items]      
Number of loans | loan   1  
Pre-modification outstanding recorded investment   $ 249  
Post-modification outstanding recorded investment   $ 249  
Consumer and Other      
Financing Receivable Modifications [Line Items]      
Number of loans | loan   1  
Pre-modification outstanding recorded investment   $ 5  
Post-modification outstanding recorded investment   $ 5  
Commercial Real Estate | Owner Occupied      
Financing Receivable Modifications [Line Items]      
Number of loans | loan     1
Pre-modification outstanding recorded investment     $ 377
Post-modification outstanding recorded investment     $ 377
Commercial Real Estate | Non-Owner Occupied      
Financing Receivable Modifications [Line Items]      
Number of loans | loan     2
Pre-modification outstanding recorded investment     $ 711
Post-modification outstanding recorded investment     $ 711
v3.10.0.1
Other Real Estate Owned - Summary of Other Real Estate Owned (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Real Estate [Abstract]        
Balance at beginning of period $ 15,334 $ 6,811 $ 16,442 $ 7,403
Transfers from loans 384 274 1,014 1,162
Properties sold (777) (702) (2,209) (2,930)
(Loss) gain on sale of other real estate owned 51 77 8 948
Transferred to loans (325) (36) (445) (36)
Write-downs (28) (54) (171) (177)
Balance at end of period $ 14,639 $ 6,370 $ 14,639 $ 6,370
v3.10.0.1
Other Real Estate Owned - Additional Information (Details) - Residential Real Estate Properties - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Real Estate Properties [Line Items]    
Foreclosed residential real estate properties $ 3,320 $ 3,631
Total foreclosure proceedings in process $ 634 $ 19
v3.10.0.1
Mortgage Servicing Rights - Schedule of Changes in Mortgage Servicing Rights (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Transfers And Servicing [Abstract]        
Carrying value prior to policy change $ 93,160 $ 47,593 $ 76,107 $ 32,070
Fair value impact of change in accounting policy   1,011   1,011
Carrying value at beginning of period 93,160 47,593 76,107 33,081
Capitalization 16,304 14,646 29,814 29,659
Sales   (11,935)   (11,935)
Change in fair value:        
Due to pay-offs/pay-downs (2,207) (532) (5,267) (797)
Due to change in valuation inputs or assumptions 2,192 (1,308) 8,795 (1,544)
Carrying value at end of period $ 109,449 $ 48,464 $ 109,449 $ 48,464
v3.10.0.1
Mortgage Servicing Rights - Schedule of Servicing Income and Expense Included in Mortgage Banking Income (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Servicing income:        
Servicing income $ 5,604 $ 2,747 $ 10,397 $ 5,495
Change in fair value of mortgage servicing rights (15) (1,840) 3,528 (2,341)
Change in fair value of mortgage servicing rights hedging instruments (1,763)   (7,019)  
Gross servicing income 3,826 907 6,906 3,154
Servicing expense:        
Loss on sale of mortgage servicing rights   249   249
Direct servicing expenses 2,078 1,204 3,873 2,138
Gross servicing expense 2,078 1,453 3,873 2,387
Net servicing income $ 1,748 $ (546) $ 3,033 $ 767
v3.10.0.1
Mortgage Servicing Rights - Schedule of Data and Key Economic Assumptions Related to Mortgage Servicing Rights (Details) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Transfers And Servicing [Abstract]    
Unpaid principal balance $ 8,483,445 $ 6,529,431
Weighted-average prepayment speed (CPR) 7.63% 8.90%
Estimated impact on fair value of a 10% increase $ (3,588) $ (3,026)
Estimated impact on fair value of a 20% increase $ (6,921) $ (5,855)
Discount rate 10.23% 9.75%
Estimated impact on fair value of a 100 bp increase $ (4,578) $ (3,052)
Estimated impact on fair value of a 200 bp increase $ (8,813) $ (5,867)
Weighted-average coupon interest rate 4.06% 3.94%
Weighted-average servicing fee (basis points) 0.28% 0.28%
Weighted-average remaining maturity (in months) 322 months 335 months
v3.10.0.1
Mortgage Servicing Rights - Additional Information (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2017
Jun. 30, 2018
Dec. 31, 2017
Transfers And Servicing [Abstract]        
Mortgage servicing rights sold $ 11,935,000 $ 11,935,000    
Mortgage loans serviced $ 1,085,465,000 $ 1,085,465,000 $ 3,217,580,000  
Mortgage loans serviced related to bulk sale of mortgage servicing rights     $ 0 $ 0
v3.10.0.1
Income Taxes - Schedule of Allocation of Federal and State Income Taxes between Current and Deferred Portions (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Income Tax Disclosure [Abstract]        
Current $ 2,195 $ 4,047 $ 2,195 $ 4,047
Deferred 5,599 2,527 11,081 7,952
Total $ 7,794 $ 6,574 $ 13,276 $ 11,999
v3.10.0.1
Income Taxes - Additional Information (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Income Tax Disclosure [Abstract]        
Statutory federal income tax rate 21.00% 35.00% 21.00% 35.00%
Tax periods open for examination     2013  
v3.10.0.1
Income Taxes - Schedule of Differences in Federal Income Tax Expense and State Tax Expense from Statutory Federal and State Rates (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Income Tax Disclosure [Abstract]        
Federal taxes calculated at statutory rate $ 6,270 $ 6,234 $ 11,570 $ 11,539
Increase (decrease) resulting from:        
State taxes, net of federal benefit 1,543 741 2,686 1,351
Benefit of equity based compensation (15) 20 (751) (175)
Municipal interest income, net of interest disallowance (207) (376) (408) (742)
Bank owned life insurance (13) (21) (25) (42)
Stock offering costs 141   141  
Other 75 (24) 63 68
Total $ 7,794 $ 6,574 $ 13,276 $ 11,999
Federal taxes calculated at statutory rate, percentage 21.00% 35.00% 21.00% 35.00%
Increase (decrease) resulting from:        
State taxes, net of federal benefit, percentage 5.20% 4.20% 4.90% 4.10%
Benefit of equity based compensation, percentage (0.10%) 0.10% (1.40%) (0.50%)
Municipal interest income, net of interest disallowance (0.70%) (2.10%) (0.70%) (2.30%)
Bank owned life insurance, percentage (0.00%) (0.10%) (0.00%) (0.10%)
Stock offering costs, percentage 0.50% 0.00% 0.30% 0.00%
Other, percentage 0.20% (0.20%) 0.00% 0.20%
Income tax expense, as reported, percentage 26.10% 36.90% 24.10% 36.40%
v3.10.0.1
Income Taxes - Schedule of Net Deferred Tax liability (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Deferred tax assets:    
Allowance for loan losses $ 6,865 $ 6,264
Amortization of core deposit intangible 898 759
Deferred compensation 4,448 6,158
Unrealized loss on available-for-sale debt securities 4,563 988
Other 3,222 3,599
Subtotal 19,996 17,768
Deferred tax liabilities:    
FHLB stock dividends (550) (550)
Depreciation (4,322) (4,115)
Cash flow hedges (930)  
Mortgage servicing rights (28,518) (19,830)
Other (5,969) (5,131)
Subtotal (40,289) (29,626)
Net deferred tax liability $ (20,293) $ (11,858)
v3.10.0.1
Commitments and Contingencies - Summary of Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Financial instruments with off-balance sheet credit loss $ 1,107,041 $ 1,000,158
Commitments to Extend Credit, Excluding Interest Rate Lock Commitments    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Financial instruments with off-balance sheet credit loss 1,088,486 977,276
Letter of Credit    
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Financial instruments with off-balance sheet credit loss $ 18,555 $ 22,882
v3.10.0.1
Commitments and Contingencies - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Commitments And Contingencies Disclosure [Abstract]        
Total principal amount of loans repurchased or indemnified $ 1,543 $ 921 $ 2,662 $ 1,770
v3.10.0.1
Commitments and Contingencies - Summary of Allowance for Loan Repurchases or Indemnifications (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Commitments And Contingencies Disclosure [Abstract]        
Balance at beginning of period $ 3,514 $ 2,842 $ 3,386 $ 2,659
Provision for loan repurchases or indemnifications 206 201 392 384
Losses on loans repurchased or indemnified (74) (6) (132) (6)
Balance at end of period $ 3,646 $ 3,037 $ 3,646 $ 3,037
v3.10.0.1
Derivatives - Additional Information (Details)
$ in Thousands
1 Months Ended 6 Months Ended
Jul. 31, 2017
USD ($)
InterestRateSwap
Jun. 30, 2018
USD ($)
Dec. 31, 2017
USD ($)
Jun. 30, 2017
USD ($)
InterestRateSwap
Derivative [Line Items]        
Lock in period for interest rates   45 days    
Long-term debt   $ 139,375 $ 143,302  
Notional amount $ 100,000      
Interest rate swap maturity date   Jun. 30, 2024    
Other Assets        
Derivative [Line Items]        
Derivative contracts collateral amount   $ 10,896 4,309  
Designated as Hedging        
Derivative [Line Items]        
Notional amount   30,000 130,000  
Subordinated Debentures        
Derivative [Line Items]        
Number of derivative instruments | InterestRateSwap       2
Long-term debt       $ 30,930
Interest Rate Swaps        
Derivative [Line Items]        
Number of derivative instruments | InterestRateSwap 3      
Other comprehensive income to be accreted   1,559    
Interest Rate Swaps | Designated as Hedging        
Derivative [Line Items]        
Fair value of interest rate swap     1,127  
Gain on cancellation of swaps, tax-adjusted amount   1,564    
Interest Rate Swaps | Subordinated Debentures        
Derivative [Line Items]        
Notional amount       $ 30,000
Fair value of interest rate swap   $ 1,296 $ 305  
Interest Rate Swaps Three        
Derivative [Line Items]        
Notional amount $ 30,000      
Derivative notional amount maturity period 3 years      
Interest Rate Swaps Four        
Derivative [Line Items]        
Notional amount $ 35,000      
Derivative notional amount maturity period 4 years      
Interest Rate Swaps Five        
Derivative [Line Items]        
Notional amount $ 35,000      
Derivative notional amount maturity period 5 years      
v3.10.0.1
Derivatives - Schedule of Derivative Financial Instruments (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Jul. 31, 2017
Derivatives Fair Value [Line Items]      
Notional amount     $ 100,000
Not Designated As Hedging      
Derivatives Fair Value [Line Items]      
Notional amount $ 1,789,798 $ 1,810,484  
Asset 13,821 8,258  
Liability 5,480 1,699  
Not Designated As Hedging | Interest rate contracts      
Derivatives Fair Value [Line Items]      
Notional amount 231,899 146,754  
Asset 3,798 1,146  
Liability 3,798 1,146  
Not Designated As Hedging | Forward commitments      
Derivatives Fair Value [Line Items]      
Notional amount 717,330 870,574  
Liability 1,682 553  
Not Designated As Hedging | Interest rate-lock commitments      
Derivatives Fair Value [Line Items]      
Notional amount 597,569 504,156  
Asset 9,495 6,768  
Not Designated As Hedging | Futures Contracts      
Derivatives Fair Value [Line Items]      
Notional amount 231,000 283,000  
Asset 445 315  
Not Designated As Hedging | Option Contracts      
Derivatives Fair Value [Line Items]      
Notional amount 12,000 6,000  
Asset 83 29  
Designated as Hedging      
Derivatives Fair Value [Line Items]      
Notional amount 30,000 130,000  
Asset 1,296 1,432  
Designated as Hedging | Interest Rate Swaps      
Derivatives Fair Value [Line Items]      
Notional amount 30,000 130,000  
Asset $ 1,296 $ 1,432  
v3.10.0.1
Derivatives - Schedule of Gains (Losses) Included in the Consolidated Statements of Income Related to Derivative Financial Instruments (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Derivatives Fair Value [Line Items]        
Gains (losses) on derivative financial instruments $ (1,456) $ (5,361) $ 4,869 $ (5,739)
Derivatives Not Designated As Hedging Instruments | Included in Mortgage Banking Income | Interest rate-lock commitments        
Derivatives Fair Value [Line Items]        
Gains (losses) on derivative financial instruments (684) (1,433) 2,727 1,509
Derivatives Not Designated As Hedging Instruments | Included in Mortgage Banking Income | Forward commitments        
Derivatives Fair Value [Line Items]        
Gains (losses) on derivative financial instruments 635 $ (3,928) 5,953 $ (7,248)
Derivatives Not Designated As Hedging Instruments | Included in Mortgage Banking Income | Futures Contracts        
Derivatives Fair Value [Line Items]        
Gains (losses) on derivative financial instruments (1,369)   (3,816)  
Derivatives Not Designated As Hedging Instruments | Included in Mortgage Banking Income | Option Contracts        
Derivatives Fair Value [Line Items]        
Gains (losses) on derivative financial instruments (38)   5  
Designated as Hedging        
Derivatives Fair Value [Line Items]        
Amount of gain (loss) reclassified from other comprehensive income and recognized in interest expense on long-term debt $ 25   $ (7)  
v3.10.0.1
Derivatives - Schedule of Other Comprehensive Income (Loss), Net of Tax, for Derivative Instruments Designated as Cash Flow Hedges (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2018
Derivatives Fair Value [Line Items]    
Amount of gain recognized in other comprehensive income, net of tax $ 196 $ 1,469
Designated as Hedging    
Derivatives Fair Value [Line Items]    
Amount of gain recognized in other comprehensive income, net of tax $ 196 $ 1,469
v3.10.0.1
Fair Value Measurements - Estimated Fair Values of Financial Instruments (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Mar. 31, 2017
Dec. 31, 2016
Financial assets:          
Interest receivable $ 12,729   $ 13,069    
Mortgage servicing rights, net 109,449 $ 93,160 76,107 $ 47,593 $ 33,081
Carrying Amount          
Financial assets:          
Cash and cash equivalents 104,417   119,751    
Investment securities 611,435   543,992    
Federal Home Loan Bank Stock 12,641   11,412    
Loans, net 3,389,228   3,142,870    
Loans held for sale 374,916   526,185    
Interest receivable 12,729   13,069    
Mortgage servicing rights, net 109,449   76,107    
Derivatives assets 15,117   9,690    
Financial liabilities:          
Deposits, Without stated maturities 3,179,754   2,976,066    
Deposits, With stated maturities 730,109   688,329    
Securities sold under agreement to repurchase 15,996   14,293    
Short term borrowings 187,522   190,000    
Interest payable 2,180   1,504    
Long-term debt 139,375   143,302    
Derivatives liabilities 5,480   1,699    
Fair Value          
Financial assets:          
Cash and cash equivalents 104,417   119,751    
Investment securities 611,435   543,992    
Loans, net 3,384,932   3,141,400    
Loans held for sale 374,916   526,185    
Interest receivable 12,729   13,069    
Mortgage servicing rights, net 109,449   76,107    
Derivatives assets 15,117   9,690    
Financial liabilities:          
Deposits, Without stated maturities 3,179,754   2,976,066    
Deposits, With stated maturities 731,029   682,403    
Securities sold under agreement to repurchase 15,996   14,293    
Short term borrowings 187,522   190,000    
Interest payable 2,180   1,504    
Long-term debt 138,578   149,135    
Derivatives liabilities 5,480   1,699    
Fair Value | Fair Value Level 1          
Financial assets:          
Cash and cash equivalents 104,417   119,751    
Financial liabilities:          
Deposits, Without stated maturities 3,179,754   2,976,066    
Securities sold under agreement to repurchase 15,996   14,293    
Short term borrowings 187,522   190,000    
Interest payable 631   575    
Fair Value | Fair Value Level 2          
Financial assets:          
Investment securities 611,435   540,388    
Loans, net     3,064,373    
Loans held for sale 374,916   526,185    
Interest receivable 12,729   13,069    
Derivatives assets 15,117   9,690    
Financial liabilities:          
Deposits, With stated maturities 731,029   682,403    
Interest payable 1,549   929    
Long-term debt 138,578   149,135    
Derivatives liabilities 5,480   1,699    
Fair Value | Fair Value Level 3          
Financial assets:          
Investment securities     3,604    
Loans, net 3,384,932   77,027    
Mortgage servicing rights, net $ 109,449   $ 76,107    
v3.10.0.1
Fair Value Measurements - Balances and Levels of Assets Measured at Fair Value on Recurring and Nonrecurring Basis (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Mar. 31, 2017
Dec. 31, 2016
Financial assets:          
Mortgage servicing rights, net $ 109,449 $ 93,160 $ 76,107 $ 47,593 $ 33,081
Impaired loans 9,263   9,373    
Available-for-sale securities, at fair value     543,992    
Fair Value, Measurements, Recurring          
Financial assets:          
Investment securities 611,435        
Loans held for sale 374,916   526,185    
Mortgage servicing rights, net 109,449   76,107    
Derivatives assets 15,117   9,690    
Available-for-sale securities, at fair value     543,992    
Financial liabilities:          
Derivatives liabilities 5,480   1,699    
Fair Value, Measurements, Recurring | U.S. Government Agency Securities          
Financial assets:          
Investment securities 983        
Available-for-sale securities, at fair value     986    
Fair Value, Measurements, Recurring | Mortgage-backed Securities          
Financial assets:          
Investment securities 477,974        
Available-for-sale securities, at fair value     418,781    
Fair Value, Measurements, Recurring | Municipals, Tax Exempt          
Financial assets:          
Investment securities 122,247        
Available-for-sale securities, at fair value     109,251    
Fair Value, Measurements, Recurring | Treasury Securities          
Financial assets:          
Investment securities 7,156        
Available-for-sale securities, at fair value     7,252    
Fair Value, Measurements, Recurring | Equity Securities          
Financial assets:          
Investment securities 3,075        
Available-for-sale securities, at fair value     7,722    
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)          
Financial assets:          
Investment securities 611,435        
Loans held for sale 374,916   526,185    
Derivatives assets 15,117   9,690    
Available-for-sale securities, at fair value     540,388    
Financial liabilities:          
Derivatives liabilities 5,480   1,699    
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government Agency Securities          
Financial assets:          
Investment securities 983        
Available-for-sale securities, at fair value     986    
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-backed Securities          
Financial assets:          
Investment securities 477,974        
Available-for-sale securities, at fair value     418,781    
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipals, Tax Exempt          
Financial assets:          
Investment securities 122,247        
Available-for-sale securities, at fair value     109,251    
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Treasury Securities          
Financial assets:          
Investment securities 7,156        
Available-for-sale securities, at fair value     7,252    
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity Securities          
Financial assets:          
Investment securities 3,075        
Available-for-sale securities, at fair value     4,118    
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)          
Financial assets:          
Mortgage servicing rights, net 109,449   76,107    
Available-for-sale securities, at fair value     3,604    
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity Securities          
Financial assets:          
Available-for-sale securities, at fair value     3,604    
Fair Value, Measurements, Nonrecurring          
Financial assets:          
Other real estate owned 798   13,174    
Impaired loans 431   77,027    
Fair Value, Measurements, Nonrecurring | Commercial and Industrial          
Financial assets:          
Impaired loans 107   1,971    
Fair Value, Measurements, Nonrecurring | Consumer and Other          
Financial assets:          
Impaired loans     25,320    
Fair Value, Measurements, Nonrecurring | Construction Loans | Commercial and Industrial          
Financial assets:          
Impaired loans     4,211    
Fair Value, Measurements, Nonrecurring | 1-to-4 Family Mortgage | Residential Real Estate          
Financial assets:          
Impaired loans 144   21,902    
Fair Value, Measurements, Nonrecurring | Owner Occupied | Commercial Real Estate          
Financial assets:          
Impaired loans 180   10,030    
Fair Value, Measurements, Nonrecurring | Non-Owner Occupied | Commercial Real Estate          
Financial assets:          
Impaired loans     13,593    
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3)          
Financial assets:          
Other real estate owned 798   13,174    
Impaired loans 431   77,027    
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Commercial and Industrial          
Financial assets:          
Impaired loans 107   1,971    
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Consumer and Other          
Financial assets:          
Impaired loans     25,320    
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Construction Loans | Commercial and Industrial          
Financial assets:          
Impaired loans     4,211    
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | 1-to-4 Family Mortgage | Residential Real Estate          
Financial assets:          
Impaired loans 144   21,902    
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Owner Occupied | Commercial Real Estate          
Financial assets:          
Impaired loans $ 180   10,030    
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-Owner Occupied | Commercial Real Estate          
Financial assets:          
Impaired loans     $ 13,593    
v3.10.0.1
Fair Value Measurements - Summary of Changes in Fair Value on Available-for-Sale Securities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs or Level 3 Inputs (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Fair Value Disclosures [Abstract]        
Balance at beginning of period $ 0 $ 4,549 $ 3,604 $ 4,549
Reclassification of equity securities without a readily determinable fair value to other assets 0 0 (3,604) 0
Balance at end of period $ 0 $ 4,549 $ 0 $ 4,549
v3.10.0.1
Fair Value Measurements - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]          
Reclassification of other securities to other assets $ 0 $ 0 $ 3,604 $ 0  
Mortgage Loans          
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]          
Net gains from fair value changes of mortgage loans 2,076 $ 1,864 4,197 $ 9,470  
GNMA          
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]          
Mortgage loans previously sold     52,212    
Mortgage loans held for sale measured at fair value $ 0   0   $ 43,035
ASU 2016-01          
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]          
Reclassification of other securities to other assets     $ 3,604    
v3.10.0.1
Fair Value Measurements - Information about Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - Significant Unobservable Inputs (Level 3) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Valuation of collateral | Minimum    
Fair Value Inputs Assets Quantitative Information [Line Items]    
Discount rate 0.00% 0.00%
Valuation of collateral | Maximum    
Fair Value Inputs Assets Quantitative Information [Line Items]    
Discount rate 30.00% 30.00%
Valuation of collateral | Impaired Loans    
Fair Value Inputs Assets Quantitative Information [Line Items]    
Fair value of assets $ 431 $ 77,027
Appraised value of property less costs to sell | Minimum    
Fair Value Inputs Assets Quantitative Information [Line Items]    
Discount rate 0.00% 0.00%
Appraised value of property less costs to sell | Maximum    
Fair Value Inputs Assets Quantitative Information [Line Items]    
Discount rate 15.00% 15.00%
Appraised value of property less costs to sell | Other Real Estate Owned    
Fair Value Inputs Assets Quantitative Information [Line Items]    
Fair value of assets $ 798 $ 13,174
v3.10.0.1
Fair Value Measurements - Schedule of Differences between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Fair Value    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Mortgage loans held for sale measured at fair value $ 374,916 $ 482,089
Past due loans of 90 days or more   320
Nonaccrual loans   741
Aggregate Unpaid Principal Balance    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Mortgage loans held for sale measured at fair value 364,063 467,039
Past due loans of 90 days or more   320
Nonaccrual loans   741
Difference    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Mortgage loans held for sale measured at fair value $ 10,853 $ 15,050
v3.10.0.1
Segment Reporting - Additional Information (Details)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Jun. 30, 2018
USD ($)
Segment
Jun. 30, 2017
USD ($)
Segment Reporting Information [Line Items]        
Number of reportable segments | Segment     2  
Interest income $ 54,529 $ 29,350 $ 105,222 $ 58,356
Mortgage Segment        
Segment Reporting Information [Line Items]        
Interest paid $ 4,517 $ 3,831 $ 9,025 $ 7,382
Mortgage Segment | Prime Interest Rate        
Segment Reporting Information [Line Items]        
Warehouse line of credit interest rate 5.00% 4.25% 5.00% 4.25%
Banking Segment        
Segment Reporting Information [Line Items]        
Interest income $ 4,517 $ 3,831 $ 9,025 $ 7,382
v3.10.0.1
Segment Reporting - Schedule of Segment Financial Information (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Segment Reporting Information [Line Items]          
Net interest income $ 51,517 $ 30,427 $ 99,946 $ 60,678  
Provision for loan losses 1,063 (865) 1,380 (1,122)  
Mortgage banking income 30,322 32,079 58,506 57,660  
Net, change in fair value of mortgage servicing rights (1,778) (1,840) (3,491) (2,341)  
Other noninterest income 7,164 5,418 13,968 11,425  
Depreciation and amortization 1,132 991 2,238 1,993  
Amortization of intangibles 802 123 1,655 515  
Loss on sale of mortgage servicing rights   249   249  
Other noninterest mortgage banking expense 25,089 24,791 48,968 47,159  
Other noninterest expense 29,280 22,982 59,593 45,637  
Income before income taxes 29,859 17,813 55,095 32,991  
Income tax expense 7,794 6,574 13,276 11,999  
Net income 22,065 11,239 41,819 20,992  
Total assets 4,923,249 3,346,570 4,923,249 3,346,570 $ 4,727,713
Goodwill 137,190 46,867 137,190 46,867 $ 137,190
Banking Segment          
Segment Reporting Information [Line Items]          
Net interest income 51,669 29,999 100,440 59,855  
Provision for loan losses 1,063 (865) 1,380 (1,122)  
Mortgage banking income 6,894 7,118 13,002 12,784  
Other noninterest income 7,164 5,418 13,968 11,425  
Depreciation and amortization 990 861 1,968 1,725  
Amortization of intangibles 802 123 1,655 515  
Other noninterest mortgage banking expense 5,649 5,368 10,746 10,204  
Other noninterest expense 29,280 22,982 59,593 45,637  
Income before income taxes 27,943 14,066 52,068 27,105  
Total assets 4,443,469 2,878,437 4,443,469 2,878,437  
Goodwill 137,090 46,767 137,090 46,767  
Mortgage Segment          
Segment Reporting Information [Line Items]          
Net interest income (152) 428 (494) 823  
Mortgage banking income 23,428 24,961 45,504 44,876  
Net, change in fair value of mortgage servicing rights (1,778) (1,840) (3,491) (2,341)  
Depreciation and amortization 142 130 270 268  
Loss on sale of mortgage servicing rights   249   249  
Other noninterest mortgage banking expense 19,440 19,423 38,222 36,955  
Income before income taxes 1,916 3,747 3,027 5,886  
Total assets 479,780 468,133 479,780 468,133  
Goodwill $ 100 $ 100 $ 100 $ 100  
v3.10.0.1
Segment Reporting - Schedule of Segment Financial Information (Parenthetical) (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Segment Reporting Information [Line Items]        
Merger and conversion   $ 767 $ 1,193 $ 1,254
Clayton Banks        
Segment Reporting Information [Line Items]        
Merger and conversion $ 0 $ 767 $ 1,193 $ 1,254
v3.10.0.1
Minimum Capital Requirements - Additional Information (Details)
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Banking And Thrift [Abstract]    
Capital conservative current buffer percentage 1.75% 1.25%
Capital conservative buffer percentage 2.50%  
Description of capital adequacy purposes Beginning in 2016, an additional conservation buffer was added to the minimum requirements for capital adequacy purposes, subject to a three year phase-in period. As of June 30, 2018 and December 31, 2017, the buffer was 1.75 percent and 1.25 percent, respectively. The capital conservative buffer will be fully phased in January 1, 2019 at 2.5 percent.  
v3.10.0.1
Minimum Capital Requirements - Schedule of Actual and Required Capital Amounts and Ratios (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
FB Financial Corporation    
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]    
Total Capital (to risk-weighted assets), Actual Amount $ 524,655 $ 496,422
Total Capital (to risk-weighted assets), Actual Ratio 11.90% 12.00%
Total Capital (to risk-weighted assets), For capital adequacy purposes, Amount $ 352,709 $ 330,672
Total Capital (to risk-weighted assets), For capital adequacy purposes, Ratio 8.00% 8.00%
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount $ 435,375 $ 382,340
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio 9.90% 9.30%
Tier 1 Capital (to risk-weighted assets), Actual Amount $ 498,308 $ 472,381
Tier 1 Capital (to risk-weighted assets), Actual Ratio 11.30% 11.40%
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount $ 264,588 $ 247,969
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Ratio 6.00% 6.00%
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount $ 347,272 $ 299,629
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio 7.90% 7.30%
Tier 1 Capital (to average assets), Actual Amount $ 498,308 $ 472,381
Tier 1 Capital (to average assets), Actual Ratio 10.90% 10.50%
Tier 1 Capital (to average assets), For capital adequacy purposes, Amount $ 182,865 $ 180,643
Tier 1 Capital (to average assets), For capital adequacy purposes, Ratio 4.00% 4.00%
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Amount $ 468,308 $ 442,381
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Ratio 10.60% 10.70%
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount $ 198,810 $ 185,874
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Ratio 4.50% 4.50%
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount $ 281,648 $ 237,506
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio 6.40% 5.80%
FirstBank    
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]    
Total Capital (to risk-weighted assets), Actual Amount $ 497,123 $ 466,102
Total Capital (to risk-weighted assets), Actual Ratio 11.30% 11.30%
Total Capital (to risk-weighted assets), For capital adequacy purposes, Amount $ 351,945 $ 329,984
Total Capital (to risk-weighted assets), For capital adequacy purposes, Ratio 8.00% 8.00%
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount $ 434,433 $ 381,544
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio 9.90% 9.30%
Total Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Amount $ 439,932 $ 412,480
Total Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Ratio 10.00% 10.00%
Tier 1 Capital (to risk-weighted assets), Actual Amount $ 470,776 $ 442,061
Tier 1 Capital (to risk-weighted assets), Actual Ratio 10.70% 10.70%
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount $ 263,987 $ 247,422
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Ratio 6.00% 6.00%
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount $ 346,482 $ 298,968
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio 7.90% 7.30%
Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions Amount $ 263,987 $ 247,422
Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions Ratio 6.00% 6.00%
Tier 1 Capital (to average assets), Actual Amount $ 470,776 $ 442,061
Tier 1 Capital (to average assets), Actual Ratio 10.20% 9.80%
Tier 1 Capital (to average assets), For capital adequacy purposes, Amount $ 184,618 $ 180,987
Tier 1 Capital (to average assets), For capital adequacy purposes, Ratio 4.00% 4.00%
Tier 1 Capital (to average assets), To be well capitalized under prompt corrective action provisions, Amount $ 230,773 $ 226,234
Tier 1 Capital (to average assets), To be well capitalized under prompt corrective action provisions, Ratio 5.00% 5.00%
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Amount $ 470,776 $ 442,061
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Ratio 10.70% 10.70%
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount $ 197,990 $ 185,567
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Ratio 4.50% 4.50%
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount $ 280,486 $ 237,113
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio 6.40% 5.80%
Common Equity Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Amount $ 285,985 $ 268,041
Common Equity Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Ratio 6.50% 6.50%
v3.10.0.1
Stock-Based Compensation - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Dec. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Compensation cost related to stock grants and vesting of restricted stock units     $ 3,819 $ 3,154    
Dividends declared $ 70   70      
Other Accrued Liabilities            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Dividends declared $ 70   $ 70      
EBI Units            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
EBI Units outstanding in equity based incentive plans for employees, units 29,172   29,172   67,470  
EBI Units outstanding in equity based incentive plans for employees, value $ 1,188   $ 1,188   $ 2,833  
Expense related to cash settled EBI $ 102 $ 184 $ 219 $ 482    
Restricted Stock Units (RSUs)            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
EBI Units outstanding in equity based incentive plans for employees, units 1,135,828 1,226,901 1,135,828 1,226,901 1,214,325 1,200,848
Fair value of restricted stock units vested and released $ 404 $ 3 $ 4,018 $ 1,346    
Compensation cost related to stock grants and vesting of restricted stock units 1,861 $ 1,802 3,819 $ 3,154    
Compensation cost due to modification of vesting terms of certain grants     249      
Unrecognized compensation cost related to nonvested restricted stock units $ 14,061   $ 14,061   $ 12,950  
Expected weighted-average period to be recognized     2 years 9 months 10 days   2 years 9 months 18 days  
Employee Stock Purchase Plan            
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]            
Maximum number of shares issuable           200,000
Purchase price percentage of offering period           95.00%
Maximum number of shares per participant           725
Maximum worth of award per participant           $ 25,000
Shares issued under plan 0 0 16,537 0    
Number of shares reserved for issuance 2,444,428   2,444,428   2,460,965  
v3.10.0.1
Stock-Based Compensation - Summary of Vested and Unvested Restricted Stock Units Outstanding (Details) - Restricted Stock Units (RSUs) - $ / shares
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Restricted Stock Units Outstanding, Balance, beginning of period (unvested) 1,214,325 1,200,848
Restricted Stock Units Outstanding, Grants 110,466 97,893
Restricted Stock Units Outstanding, Released and distributed (vested) (181,903) (70,819)
Restricted Stock Units Outstanding, Forfeited/expired (7,060) (1,021)
Restricted Stock Units Outstanding, Balance, end of period (unvested) 1,135,828 1,226,901
Weighted Average Grant Date Fair Value, Balance, beginning of period (unvested) $ 19.97 $ 19.00
Weighted Average Grant Date Fair Value, Grants 40.02 33.88
Weighted Average Grant Date Fair Value, Released and distributed (vested) 22.09 19.00
Weighted Average Grant Date Fair Value, Forfeited/expired 21.81 19.00
Weighted Average Grant Date Fair Value, Balance, end of period (unvested) $ 21.59 $ 19.67
v3.10.0.1
Related Party Transactions - Schedule of Loans Analysis to Executive Officers, Certain Management, Bank Directors and Their Affiliates (Details)
$ in Thousands
6 Months Ended
Jun. 30, 2018
USD ($)
Related Party Transactions [Abstract]  
Loans outstanding, Beginning balance $ 21,012
New loans and advances 1,611
Repayments (4,657)
Loans outstanding, Ending balance $ 17,966
v3.10.0.1
Related Party Transactions - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Related Party Transaction [Line Items]          
Unfunded commitments $ 4   $ 4   $ 2
Deposits from related parties 238,891   238,891   110,465
Aviation Time Sharing Agreement          
Related Party Transaction [Line Items]          
Payments to related party 53 $ 2 125 $ 27  
Registration Rights Agreement | 2016 IPO          
Related Party Transaction [Line Items]          
Payments to related party 700        
Certain Executive Officers and Directors and Their Associates          
Related Party Transaction [Line Items]          
Unfunded commitments 10,189   10,189   4,672
Shareholders          
Related Party Transaction [Line Items]          
Unamortized leasehold improvements 126   126   137
Lease expense 111 $ 124 259 $ 250  
Director | Other Assets          
Related Party Transaction [Line Items]          
Amount of investment held by the company $ 127   $ 127   $ 200