Georgia
(State or other jurisdiction
of incorporation)
|
|
1-10312
(Commission
File Number)
|
|
58-1134883
(IRS Employer
Identification No.)
|
1111 Bay Avenue, Suite 500, Columbus, Georgia
(Address of principal executive offices)
|
|
31901
(Zip Code)
|
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))
|
(a)
|
Financial Statements of Business Acquired
|
(b)
|
Pro Forma Financial Information
|
|
•
|
|
Unaudited pro forma combined condensed balance sheet as of September 30, 2018, giving effect to the Merger as if it occurred on September 30, 2018;
|
|
•
|
unaudited pro forma combined condensed consolidated statement of income for the nine months ended September 30, 2018, giving effect to the Merger as if
it occurred on January 1, 2017; and
|
|
•
|
|
unaudited pro forma combined condensed consolidated statement of income for the year ended December 31, 2017, giving effect to the Merger as if it
occurred on January 1, 2017.
|
(c)
|
The following Exhibits are filed herewith. |
Exhibit No.
|
Description
|
Agreement and Plan of Merger, dated as of July 23, 2018, by and among FCB Financial Holdings, Inc., Synovus Financial Corp. and Azalea Merger Sub Corp.
(incorporated herein by reference to Annex A of the Form S-4, filed by the Registrant on October 29, 2018)
|
|
Consent of Grant Thornton LLP.*
|
|
Press Release, dated January 2, 2019
|
|
Audited consolidated financial statements of FCB as of and for the years ended December 31, 2017 and 2016*
|
|
Unaudited consolidated financial statements of FCB as of and for the nine months ended September 30, 2018*
|
|
Unaudited pro forma combined condensed balance sheet as of September 30, 2018, giving effect to the Merger as if it occurred on September 30, 2018;
unaudited pro forma combined condensed statement of income for the nine months ended September 30, 2018, giving effect to the Merger as if it occurred on January 1, 2017; and unaudited pro forma combined condensed consolidated statement of
income for the year ended December 31, 2017, giving effect to the Merger as if it occurred on January 1, 2017.*
|
* |
Filed herewith.
|
Synovus Financial Corp.
|
||
(Registrant)
|
||
Date: January 2, 2019
|
By:
|
/s/ Allan E. Kamensky
|
(Signature)
|
||
Name:
|
Allan E. Kamensky, Esq.
|
|
Title:
|
Executive Vice President, General Counsel and Secretary
|
Media Contacts
|
Investor Contacts
|
Lee Underwood, 706.644.0528
|
Steve Adams, 706.641.6462
|
|
Page
|
|
|
FCB FINANCIAL HOLDINGS, INC.
|
||
Date:
|
February 23, 2018
|
|
/s/ Kent S. Ellert
|
|
|
|
Kent S. Ellert
|
||
|
|
President and Chief Executive Officer
|
||
|
|
(Principal Executive Officer)
|
||
Date:
|
February 23, 2018
|
|
/s/ Jack Partagas
|
|
|
|
Jack Partagas
|
||
|
|
Senior Vice President and Chief Financial Officer
|
||
|
|
(Principal Financial Officer and
|
||
|
|
Principal Accounting Officer)
|
|
December 31,
|
||||||
|
2017
|
2016
|
|||||
Assets:
|
|||||||
Cash and due from banks
|
$
|
60,787
|
|
$
|
52,903
|
|
|
Interest-earning deposits in other banks
|
55,134
|
|
30,973
|
|
|||
Investment securities:
|
|||||||
Available for sale securities, at fair value
|
2,120,803
|
|
1,876,434
|
|
|||
Federal Home Loan Bank and other bank stock, at cost
|
56,881
|
|
51,656
|
|
|||
Total investment securities
|
2,177,684
|
|
1,928,090
|
|
|||
Loans held for sale
|
12,736
|
|
20,220
|
|
|||
Loans:
|
|||||||
New loans
|
7,661,385
|
|
6,259,406
|
|
|||
Acquired loans
|
316,399
|
|
375,488
|
|
|||
Allowance for loan losses
|
(47,145
|
)
|
(37,897
|
)
|
|||
Loans, net
|
7,930,639
|
|
6,596,997
|
|
|||
Premises and equipment, net
|
36,144
|
|
36,652
|
|
|||
Other real estate owned
|
14,906
|
|
19,228
|
|
|||
Goodwill
|
81,204
|
|
81,204
|
|
|||
Core deposit intangible
|
3,668
|
|
4,691
|
|
|||
Deferred tax assets, net
|
27,043
|
|
61,391
|
|
|||
Bank-owned life insurance
|
201,069
|
|
198,438
|
|
|||
Other assets
|
76,065
|
|
59,347
|
|
|||
Total assets
|
$
|
10,677,079
|
|
$
|
9,090,134
|
|
|
Liabilities and Stockholders’ Equity
|
|||||||
Liabilities:
|
|||||||
Deposits:
|
|||||||
Transaction accounts:
|
|||||||
Noninterest-bearing
|
$
|
1,236,685
|
|
$
|
905,905
|
|
|
Interest-bearing
|
4,830,525
|
|
4,183,972
|
|
|||
Total transaction accounts
|
6,067,210
|
|
5,089,877
|
|
|||
Time deposits
|
2,606,717
|
|
2,215,794
|
|
|||
Total deposits
|
8,673,927
|
|
7,305,671
|
|
|||
Borrowings (including FHLB advances of $670,000 and $592,250, respectively)
|
749,113
|
|
751,103
|
|
|||
Other liabilities
|
74,867
|
|
50,919
|
|
|||
Total liabilities
|
9,497,907
|
|
8,107,693
|
|
|||
Commitments and contingencies (Note 17)
|
|
|
|||||
Stockholders’ Equity:
|
|||||||
Class A common stock, par value $0.001 per share; 100 million shares authorized; 47,065,593, 43,663,586 issued and 44,371,104, 40,969,097
outstanding
|
47
|
|
44
|
|
|||
Class B common stock, par value $0.001 per share; 50 million shares authorized; 192,132, 380,606 issued and 0, 197,950 outstanding
|
—
|
|
—
|
|
|||
Additional paid-in capital
|
933,960
|
|
875,314
|
|
|||
Retained earnings
|
313,645
|
|
188,451
|
|
|||
Accumulated other comprehensive income (loss)
|
8,893
|
|
(3,995
|
)
|
|||
Treasury stock, at cost; 2,694,489, 2,694,489 Class A and 192,132, 192,132 Class B common shares
|
(77,373
|
)
|
(77,373
|
)
|
|||
Total stockholders’ equity
|
1,179,172
|
|
982,441
|
|
|||
Total liabilities and stockholders’ equity
|
$
|
10,677,079
|
|
$
|
9,090,134
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
Interest income:
|
|||||||||||
Interest and fees on loans
|
$
|
295,400
|
|
$
|
258,261
|
|
$
|
196,123
|
|
||
Interest and dividends on investment securities
|
78,176
|
|
60,706
|
|
52,741
|
|
|||||
Other interest income
|
525
|
|
349
|
|
176
|
|
|||||
Total interest income
|
374,101
|
|
319,316
|
|
249,040
|
|
|||||
Interest expense:
|
|||||||||||
Interest on deposits
|
66,066
|
|
44,329
|
|
26,141
|
|
|||||
Interest on borrowings
|
12,583
|
|
7,271
|
|
5,103
|
|
|||||
Total interest expense
|
78,649
|
|
51,600
|
|
31,244
|
|
|||||
Net interest income
|
295,452
|
|
267,716
|
|
217,796
|
|
|||||
Provision for loan losses
|
9,415
|
|
7,655
|
|
6,823
|
|
|||||
Net interest income after provision for loan losses
|
286,037
|
|
260,061
|
|
210,973
|
|
|||||
Noninterest income:
|
|||||||||||
Service charges and fees
|
3,736
|
|
3,467
|
|
3,184
|
|
|||||
Loan and other fees
|
11,415
|
|
8,895
|
|
8,611
|
|
|||||
Bank-owned life insurance income
|
5,647
|
|
5,192
|
|
4,610
|
|
|||||
FDIC loss share indemnification loss
|
—
|
|
—
|
|
(65,529
|
)
|
|||||
Income from resolution of acquired assets
|
1,973
|
|
3,345
|
|
9,605
|
|
|||||
Gain (loss) on sales of other real estate owned
|
(176
|
)
|
3,126
|
|
8,107
|
|
|||||
Gain on investment securities
|
1,933
|
|
1,819
|
|
1,906
|
|
|||||
Other noninterest income
|
10,488
|
|
3,873
|
|
4,184
|
|
|||||
Total noninterest income (loss)
|
35,016
|
|
29,717
|
|
(25,322
|
)
|
|||||
Noninterest expense:
|
|||||||||||
Salaries and employee benefits
|
84,830
|
|
76,231
|
|
69,021
|
|
|||||
Occupancy and equipment expenses
|
13,463
|
|
13,591
|
|
14,397
|
|
|||||
Loan and other real estate related expenses
|
3,623
|
|
7,356
|
|
7,740
|
|
|||||
Professional services
|
5,940
|
|
5,207
|
|
5,412
|
|
|||||
Data processing and network
|
12,565
|
|
11,461
|
|
10,671
|
|
|||||
Regulatory assessments and insurance
|
8,971
|
|
7,872
|
|
8,196
|
|
|||||
Amortization of intangibles
|
1,023
|
|
1,189
|
|
1,631
|
|
|||||
Marketing and promotions
|
4,587
|
|
3,851
|
|
3,612
|
|
|||||
Other operating expenses
|
6,692
|
|
7,199
|
|
5,924
|
|
|||||
Total noninterest expense
|
141,694
|
|
133,957
|
|
126,604
|
|
|||||
Income before income tax expense
|
179,359
|
|
155,821
|
|
59,047
|
|
|||||
Income tax expense
|
54,165
|
|
55,905
|
|
5,656
|
|
|||||
Net income
|
$
|
125,194
|
|
$
|
99,916
|
|
$
|
53,391
|
|
||
Earnings per share:
|
|||||||||||
Basic
|
$
|
2.92
|
|
$
|
2.45
|
|
$
|
1.29
|
|
||
Diluted
|
$
|
2.71
|
|
$
|
2.31
|
|
$
|
1.23
|
|
||
Weighted average shares outstanding:
|
|||||||||||
Basic
|
42,887,142
|
|
40,716,588
|
|
41,300,979
|
|
|||||
Diluted
|
46,120,930
|
|
43,225,164
|
|
43,293,607
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
Net income
|
$
|
125,194
|
|
$
|
99,916
|
|
$
|
53,391
|
|
||
Other comprehensive income (loss):
|
|||||||||||
Unrealized net holding gains (losses) on investment securities available for sale, net of taxes of $(9,244), $(4,467), and $5,399, respectively
|
14,868
|
|
7,115
|
|
(8,598
|
)
|
|||||
Reclassification adjustment for realized (gains) losses on investment securities available for sale included in net income, net of taxes of $1,226,
$1,048, and $956, respectively
|
(1,980
|
)
|
(1,667
|
)
|
(1,524
|
)
|
|||||
Total other comprehensive income (loss)
|
12,888
|
|
5,448
|
|
(10,122
|
)
|
|||||
Total comprehensive income
|
$
|
138,082
|
|
$
|
105,364
|
|
$
|
43,269
|
|
|
Common Stock
Shares Outstanding
|
Common Stock
Issued
|
Additional
Paid in Capital
|
Retained Earnings
|
Treasury Stock
|
Accumulated Other Comprehensive Income (loss)
|
Total Stockholders Equity
|
||||||||||||||||||||||||||
|
Class A
|
Class B
|
Class A
|
Class B
|
|||||||||||||||||||||||||||||
Balance as of January 1, 2015
|
34,469,650
|
|
6,940,048
|
|
$
|
36
|
|
$
|
7
|
|
$
|
834,538
|
|
$
|
35,144
|
|
$
|
(18,751
|
)
|
$
|
679
|
|
$
|
851,653
|
|
||||||||
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
53,391
|
|
—
|
|
—
|
|
53,391
|
|
|||||||||||||||
Exchange of B shares to A shares
|
3,206,166
|
|
(3,206,166
|
)
|
3
|
|
(3
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||||||
Stock-based compensation and warrant expense
|
—
|
|
—
|
|
—
|
|
—
|
|
5,290
|
|
—
|
|
—
|
|
—
|
|
5,290
|
|
|||||||||||||||
Excess tax benefit of stock-based compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
2,048
|
|
—
|
|
—
|
|
—
|
|
2,048
|
|
|||||||||||||||
Treasury stock purchases
|
(1,050,062
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(34,884
|
)
|
—
|
|
(34,884
|
)
|
|||||||||||||||
Stock issued in connection with equity awards and warrants
|
500,817
|
|
—
|
|
—
|
|
—
|
|
8,793
|
|
—
|
|
—
|
|
—
|
|
8,793
|
|
|||||||||||||||
Other
|
—
|
|
—
|
|
—
|
|
—
|
|
(60
|
)
|
—
|
|
—
|
|
—
|
|
(60
|
)
|
|||||||||||||||
Other comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(10,122
|
)
|
(10,122
|
)
|
|||||||||||||||
Balance as of December 31, 2015
|
37,126,571
|
|
3,733,882
|
|
$
|
39
|
|
$
|
4
|
|
$
|
850,609
|
|
$
|
88,535
|
|
$
|
(53,635
|
)
|
$
|
(9,443
|
)
|
$
|
876,109
|
|
||||||||
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
99,916
|
|
—
|
|
—
|
|
99,916
|
|
|||||||||||||||
Exchange of B shares to A shares
|
3,545,408
|
|
(3,545,408
|
)
|
4
|
|
(4
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||||||
Stock-based compensation and warrant expense
|
—
|
|
—
|
|
—
|
|
—
|
|
5,613
|
|
—
|
|
—
|
|
—
|
|
5,613
|
|
|||||||||||||||
Excess tax benefit of stock-based compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
2,110
|
|
—
|
|
—
|
|
—
|
|
2,110
|
|
|||||||||||||||
Treasury stock purchases
|
(717,115
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(23,738
|
)
|
—
|
|
(23,738
|
)
|
|||||||||||||||
Stock issued in connection with equity awards and warrants
|
1,014,233
|
|
—
|
|
1
|
|
—
|
|
17,041
|
|
—
|
|
—
|
|
—
|
|
17,042
|
|
|||||||||||||||
Other
|
—
|
|
—
|
|
—
|
|
—
|
|
(59
|
)
|
—
|
|
—
|
|
—
|
|
(59
|
)
|
|||||||||||||||
Other comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5,448
|
|
5,448
|
|
|||||||||||||||
Balance as of December 31, 2016
|
40,969,097
|
|
188,474
|
|
$
|
44
|
|
$
|
—
|
|
$
|
875,314
|
|
$
|
188,451
|
|
$
|
(77,373
|
)
|
$
|
(3,995
|
)
|
$
|
982,441
|
|
||||||||
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
125,194
|
|
—
|
|
—
|
|
125,194
|
|
|||||||||||||||
Exchange of B shares to A shares
|
188,474
|
|
(188,474
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||||||
Stock-based compensation and warrant expense
|
—
|
|
—
|
|
—
|
|
—
|
|
8,038
|
|
—
|
|
—
|
|
—
|
|
8,038
|
|
|||||||||||||||
Stock issued in connection with equity awards and warrants
|
3,213,533
|
|
—
|
|
3
|
|
—
|
|
50,667
|
|
—
|
|
—
|
|
—
|
|
50,670
|
|
|||||||||||||||
Other
|
—
|
|
—
|
|
—
|
|
—
|
|
(59
|
)
|
—
|
|
—
|
|
—
|
|
(59
|
)
|
|||||||||||||||
Other comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
12,888
|
|
12,888
|
|
|||||||||||||||
Balance as of December 31, 2017
|
44,371,104
|
|
—
|
|
$
|
47
|
|
$
|
—
|
|
$
|
933,960
|
|
$
|
313,645
|
|
$
|
(77,373
|
)
|
$
|
8,893
|
|
$
|
1,179,172
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
Cash Flows From Operating Activities:
|
|||||||||||
Net income
|
$
|
125,194
|
|
$
|
99,916
|
|
$
|
53,391
|
|
||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|||||||||||
Provision for loan losses
|
9,415
|
|
7,655
|
|
6,823
|
|
|||||
Amortization of intangible assets
|
1,023
|
|
1,189
|
|
1,631
|
|
|||||
Depreciation and amortization of premises and equipment
|
3,618
|
|
3,583
|
|
3,792
|
|
|||||
Amortization of discount on loans
|
(1,265
|
)
|
(930
|
)
|
(2,657
|
)
|
|||||
Net amortization (accretion) of premium (discount) on investment securities
|
2,166
|
|
1,586
|
|
1,883
|
|
|||||
Net amortization (accretion) of premium (discount) on time deposits
|
—
|
|
(50
|
)
|
(336
|
)
|
|||||
Net amortization (accretion) of premium (discount) on FHLB advances and other borrowings
|
(846
|
)
|
(2,635
|
)
|
(2,609
|
)
|
|||||
Impairment of other real estate owned
|
670
|
|
1,751
|
|
728
|
|
|||||
Impairment of fixed assets HFS
|
—
|
|
48
|
|
—
|
|
|||||
FDIC Loss share indemnification loss
|
—
|
|
—
|
|
65,529
|
|
|||||
(Gain) loss on investment securities
|
(1,933
|
)
|
(1,819
|
)
|
(1,906
|
)
|
|||||
(Gain) loss on sale of loans
|
(4,860
|
)
|
(1,635
|
)
|
(1,717
|
)
|
|||||
(Gain) loss on sale of other real estate owned
|
176
|
|
(3,126
|
)
|
(8,107
|
)
|
|||||
(Gain) loss on sale of premises and equipment
|
(34
|
)
|
48
|
|
174
|
|
|||||
Deferred tax expense
|
26,329
|
|
10,364
|
|
(21,395
|
)
|
|||||
Stock-based compensation
|
8,038
|
|
5,613
|
|
5,290
|
|
|||||
Increase in cash surrender value of BOLI
|
(5,647
|
)
|
(5,192
|
)
|
(4,610
|
)
|
|||||
Net change in operating assets and liabilities:
|
|||||||||||
Net change in loans held for sale
|
9,535
|
|
(16,071
|
)
|
(379
|
)
|
|||||
Settlement of FDIC loss share agreement
|
—
|
|
—
|
|
(14,815
|
)
|
|||||
Net change in other assets
|
(14,112
|
)
|
8,499
|
|
49
|
|
|||||
Net change in other liabilities
|
6,679
|
|
(10,717
|
)
|
(12,539
|
)
|
|||||
Net cash provided by (used in) operating activities
|
164,146
|
|
98,077
|
|
68,220
|
|
|||||
Cash Flows From Investing Activities:
|
|||||||||||
Purchase of investment securities available for sale
|
(884,732
|
)
|
(750,482
|
)
|
(676,708
|
)
|
|||||
Sales of investment securities available for sale
|
223,726
|
|
342,137
|
|
354,733
|
|
|||||
Paydown and maturities of investment securities available for sale
|
451,974
|
|
89,421
|
|
139,996
|
|
|||||
Purchase of FHLB and other bank stock
|
(178,578
|
)
|
(113,362
|
)
|
(81,207
|
)
|
|||||
Sales of FHLB and other bank stock
|
173,353
|
|
121,183
|
|
88,621
|
|
|||||
Net change in loans
|
(1,601,014
|
)
|
(1,357,875
|
)
|
(939,514
|
)
|
|||||
Purchase of loans
|
(11,867
|
)
|
(200,480
|
)
|
(395,649
|
)
|
|||||
Proceeds from sale of loans
|
271,854
|
|
106,450
|
|
52,362
|
|
|||||
Purchase of bank-owned life insurance
|
—
|
|
(25,000
|
)
|
(25,000
|
)
|
|||||
Proceeds from sale of other real estate owned
|
5,520
|
|
34,274
|
|
64,139
|
|
|||||
Purchase of premises and equipment
|
(3,163
|
)
|
(4,925
|
)
|
(1,958
|
)
|
|||||
Proceeds from the sale of premises and equipment
|
87
|
|
1,548
|
|
—
|
|
|||||
Capitalized expenditures on foreclosed real estate
|
—
|
|
(543
|
)
|
—
|
|
|||||
Proceeds from life insurance
|
3,016
|
|
—
|
|
1,193
|
|
|||||
Net cash provided by (used in) investing activities
|
(1,549,824
|
)
|
(1,757,654
|
)
|
(1,418,992
|
)
|
|||||
Cash Flows From Financing Activities:
|
|||||||||||
Net change in deposits
|
1,368,256
|
|
1,875,083
|
|
1,452,439
|
|
|||||
Net change in FHLB advances and other borrowings
|
77,750
|
|
(214,250
|
)
|
(177,186
|
)
|
|||||
Net change in repurchase agreements
|
(78,894
|
)
|
(15,195
|
)
|
94,997
|
|
|||||
Repurchase of stock
|
—
|
|
(23,738
|
)
|
(34,884
|
)
|
|||||
Exercise of stock options
|
50,670
|
|
17,042
|
|
8,793
|
|
|||||
Excess tax benefit from share based payments
|
—
|
|
2,110
|
|
2,048
|
|
|||||
Other financing costs
|
(59
|
)
|
(59
|
)
|
(60
|
)
|
|||||
Net cash provided by (used in) financing activities
|
1,417,723
|
|
1,640,993
|
|
1,346,147
|
|
|||||
Net Change in Cash and Cash Equivalents
|
32,045
|
|
(18,584
|
)
|
(4,625
|
)
|
|||||
Cash and Cash Equivalents at Beginning of Period
|
83,876
|
|
102,460
|
|
107,085
|
|
|||||
Cash and Cash Equivalents at End of Period
|
$
|
115,921
|
|
$
|
83,876
|
|
$
|
102,460
|
|
||
Supplemental Disclosures of Cash Flow Information:
|
|||||||||||
Interest paid
|
$
|
77,859
|
|
$
|
50,631
|
|
$
|
30,788
|
|
||
Income taxes paid
|
19,719
|
|
60,192
|
|
36,304
|
|
|||||
Supplemental disclosure of noncash investing and financing activities:
|
|||||||||||
Transfer of loans to other real estate owned
|
$
|
2,044
|
|
$
|
12,244
|
|
$
|
21,573
|
|
•
|
There is evidence of credit quality deterioration since origination resulting in a “Day 1” discount attributable, at least in part, to
credit quality;
|
•
|
The loans were acquired in a business combination or asset purchase; and
|
•
|
The loans are not to be subsequently accounted for at fair value.
|
•
|
Requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of
the investee) to be measured at fair value with changes in fair value recognized in net income.
|
•
|
Simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative
assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value.
|
•
|
Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the
fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet.
|
•
|
Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure
purposes.
|
•
|
Requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a
liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments.
|
•
|
Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that
is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements.
|
•
|
Clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale
securities in combination with the entity’s other deferred tax assets.
|
1.
|
An entity should present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a
change in the instrument-specific credit risk if the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments.
|
2.
|
Entities that are not public business entities are not required to apply the fair value of financial instruments disclosure guidance in the General
Subsection of Section 825-10-50.
|
|
Amortized
Cost
|
Unrealized
|
Fair
Value
|
||||||||||||
December 31, 2017
|
Gains
|
Losses
|
|||||||||||||
|
(Dollars in thousands)
|
||||||||||||||
Available for sale:
|
|||||||||||||||
U.S. Government agencies and sponsored enterprises obligations
|
$
|
43,471
|
|
$
|
38
|
|
$
|
671
|
|
$
|
42,838
|
|
|||
U.S. Government agencies and sponsored enterprises mortgage-backed securities
|
600,310
|
|
1,716
|
|
6,789
|
|
595,237
|
|
|||||||
State and municipal obligations
|
26,766
|
|
125
|
|
719
|
|
26,172
|
|
|||||||
Asset-backed securities
|
608,340
|
|
2,306
|
|
100
|
|
610,546
|
|
|||||||
Corporate bonds and other debt securities
|
738,994
|
|
18,222
|
|
1,313
|
|
755,903
|
|
|||||||
Preferred stock and other equity securities
|
88,520
|
|
2,279
|
|
692
|
|
90,107
|
|
|||||||
Total available for sale
|
$
|
2,106,401
|
|
$
|
24,686
|
|
$
|
10,284
|
|
$
|
2,120,803
|
|
|
Amortized
Cost
|
Unrealized
|
Fair
Value
|
||||||||||||
December 31, 2016
|
Gains
|
Losses
|
|||||||||||||
|
(Dollars in thousands)
|
||||||||||||||
Available for sale:
|
|||||||||||||||
U.S. Government agencies and sponsored enterprises obligations
|
$
|
16,512
|
|
$
|
76
|
|
$
|
274
|
|
$
|
16,314
|
|
|||
U.S. Government agencies and sponsored enterprises mortgage-backed securities
|
566,377
|
|
1,760
|
|
9,691
|
|
558,446
|
|
|||||||
State and municipal obligations
|
28,109
|
|
148
|
|
578
|
|
27,679
|
|
|||||||
Asset-backed securities
|
574,521
|
|
3,852
|
|
550
|
|
577,823
|
|
|||||||
Corporate bonds and other debt securities
|
560,191
|
|
4,490
|
|
5,387
|
|
559,294
|
|
|||||||
Preferred stock and other equity securities
|
137,228
|
|
814
|
|
1,164
|
|
136,878
|
|
|||||||
Total available for sale
|
$
|
1,882,938
|
|
$
|
11,140
|
|
$
|
17,644
|
|
$
|
1,876,434
|
|
Amortized
Cost
|
Fair
Value
|
||||||
December 31, 2017
|
|||||||
|
(Dollars in thousands)
|
||||||
Available for sale:
|
|||||||
Due in one year or less
|
$
|
58,061
|
|
$
|
58,605
|
|
|
Due after one year through five years
|
225,134
|
|
228,557
|
|
|||
Due after five years through ten years
|
177,272
|
|
177,697
|
|
|||
Due after ten years
|
305,293
|
|
317,216
|
|
|||
U.S. Government agencies and sponsored enterprises obligations, mortgage-backed securities and tax-exempt mortgage securities, and asset-backed
securities
|
1,252,121
|
|
1,248,621
|
|
|||
Preferred stock and other equity securities
|
88,520
|
|
90,107
|
|
|||
Total available for sale
|
$
|
2,106,401
|
|
$
|
2,120,803
|
|
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||
December 31, 2017
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
|||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Available for sale:
|
|||||||||||||||||||||||
U.S. Government agencies and sponsored enterprises obligations
|
$
|
31,518
|
|
$
|
268
|
|
$
|
7,157
|
|
$
|
403
|
|
$
|
38,675
|
|
$
|
671
|
|
|||||
U.S. Government agencies and sponsored enterprises mortgage-backed securities
|
207,735
|
|
1,836
|
|
175,810
|
|
4,953
|
|
383,545
|
|
6,789
|
|
|||||||||||
State and municipal obligations
|
192
|
|
2
|
|
23,813
|
|
717
|
|
24,005
|
|
719
|
|
|||||||||||
Asset-backed securities
|
36,542
|
|
100
|
|
—
|
|
—
|
|
36,542
|
|
100
|
|
|||||||||||
Corporate bonds and other debt securities
|
186,052
|
|
1,240
|
|
10,842
|
|
73
|
|
196,894
|
|
1,313
|
|
|||||||||||
Preferred stock and other equity securities
|
6,041
|
|
26
|
|
20,337
|
|
666
|
|
26,378
|
|
692
|
|
|||||||||||
Total available for sale
|
$
|
468,080
|
|
$
|
3,472
|
|
$
|
237,959
|
|
$
|
6,812
|
|
$
|
706,039
|
|
$
|
10,284
|
|
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||
December 31, 2016
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
|||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Available for sale:
|
|||||||||||||||||||||||
U.S. Government agencies and sponsored enterprises obligations
|
$
|
11,577
|
|
$
|
274
|
|
$
|
—
|
|
$
|
—
|
|
$
|
11,577
|
|
$
|
274
|
|
|||||
U.S. Government agencies and sponsored enterprises mortgage-backed securities
|
372,145
|
|
9,261
|
|
11,781
|
|
430
|
|
383,926
|
|
9,691
|
|
|||||||||||
State and municipal obligations
|
25,490
|
|
578
|
|
—
|
|
—
|
|
25,490
|
|
578
|
|
|||||||||||
Asset-backed securities
|
11,309
|
|
21
|
|
34,855
|
|
529
|
|
46,164
|
|
550
|
|
|||||||||||
Corporate bonds and other debt securities
|
179,925
|
|
3,042
|
|
77,934
|
|
2,345
|
|
257,859
|
|
5,387
|
|
|||||||||||
Preferred stock and other equity securities
|
49,996
|
|
1,144
|
|
5,123
|
|
20
|
|
55,119
|
|
1,164
|
|
|||||||||||
Total available for sale
|
$
|
650,442
|
|
$
|
14,320
|
|
$
|
129,693
|
|
$
|
3,324
|
|
$
|
780,135
|
|
$
|
17,644
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Gross realized gains
|
$
|
4,364
|
|
$
|
3,645
|
|
$
|
2,065
|
|
||
Gross realized losses
|
(5,252
|
)
|
(2,066
|
)
|
(1,047
|
)
|
|||||
Net realized gains (losses)
|
$
|
(888
|
)
|
|
$
|
1,579
|
|
$
|
1,018
|
|
December 31, 2017
|
ASC
310-30
Loans
|
Non-ASC
310-30
Loans
|
New
Loans (1)
|
Total
|
|||||||||||
|
(Dollars in thousands)
|
||||||||||||||
Real estate loans:
|
|||||||||||||||
Commercial real estate
|
$
|
104,335
|
|
$
|
37,736
|
|
$
|
2,103,788
|
|
$
|
2,245,859
|
|
|||
Owner-occupied commercial real estate
|
—
|
|
16,100
|
|
987,781
|
|
1,003,881
|
|
|||||||
1-4 single family residential
|
27,513
|
|
57,695
|
|
2,185,362
|
|
2,270,570
|
|
|||||||
Construction, land and development
|
13,167
|
|
5,889
|
|
684,462
|
|
703,518
|
|
|||||||
Home equity loans and lines of credit
|
—
|
|
34,589
|
|
59,636
|
|
94,225
|
|
|||||||
Total real estate loans
|
$
|
145,015
|
|
$
|
152,009
|
|
$
|
6,021,029
|
|
$
|
6,318,053
|
|
|||
Other loans:
|
|||||||||||||||
Commercial and industrial
|
$
|
12,631
|
|
$
|
5,062
|
|
$
|
1,634,372
|
|
$
|
1,652,065
|
|
|||
Consumer
|
1,423
|
|
259
|
|
5,984
|
|
7,666
|
|
|||||||
Total other loans
|
14,054
|
|
5,321
|
|
1,640,356
|
|
1,659,731
|
|
|||||||
Total loans held in portfolio
|
$
|
159,069
|
|
$
|
157,330
|
|
$
|
7,661,385
|
|
$
|
7,977,784
|
|
|||
Allowance for loan losses
|
(47,145
|
)
|
|||||||||||||
Loans held in portfolio, net
|
$
|
7,930,639
|
|
||||||||||||
|
|
||||||||||||||
December 31, 2016
|
ASC
310-30
Loans
|
Non-ASC
310-30
Loans
|
New
Loans (1)
|
Total
|
|||||||||||
|
(Dollars in thousands)
|
||||||||||||||
Real estate loans:
|
|||||||||||||||
Commercial real estate
|
$
|
130,628
|
|
$
|
38,786
|
|
$
|
1,438,427
|
|
$
|
1,607,841
|
|
|||
Owner-occupied commercial real estate
|
—
|
|
18,477
|
|
769,814
|
|
788,291
|
|
|||||||
1-4 single family residential
|
31,476
|
|
66,854
|
|
2,012,856
|
|
2,111,186
|
|
|||||||
Construction, land and development
|
17,657
|
|
6,338
|
|
651,253
|
|
675,248
|
|
|||||||
Home equity loans and lines of credit
|
—
|
|
42,295
|
|
49,819
|
|
92,114
|
|
|||||||
Total real estate loans
|
$
|
179,761
|
|
$
|
172,750
|
|
$
|
4,922,169
|
|
$
|
5,274,680
|
|
|||
Other loans:
|
|||||||||||||||
Commercial and industrial
|
$
|
15,147
|
|
$
|
5,815
|
|
$
|
1,332,869
|
|
$
|
1,353,831
|
|
|||
Consumer
|
1,681
|
|
334
|
|
4,368
|
|
6,383
|
|
|||||||
Total other loans
|
16,828
|
|
6,149
|
|
1,337,237
|
|
1,360,214
|
|
|||||||
Total loans held in portfolio
|
$
|
196,589
|
|
$
|
178,899
|
|
$
|
6,259,406
|
|
$
|
6,634,894
|
|
|||
Allowance for loan losses
|
(37,897
|
)
|
|||||||||||||
Loans held in portfolio, net
|
$
|
6,596,997
|
|
(1)
|
Balance includes $(6.6) million and $3.2 million of net deferred fees, costs, and premium and discount as of December 31, 2017 and 2016,
respectively.
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Balance at January 1,
|
$
|
60,990
|
|
$
|
144,152
|
|
$
|
156,197
|
|
||
Accretion
|
(17,523
|
)
|
(54,427
|
)
|
(55,019
|
)
|
|||||
Reclassifications from non-accretable difference
|
(2,305
|
)
|
(28,735
|
)
|
42,974
|
|
|||||
Balance at December 31,
|
$
|
41,162
|
|
$
|
60,990
|
|
$
|
144,152
|
|
Commercial
Real Estate
|
Owner-
Occupied
Commercial
Real Estate
|
1- 4 Single
Family
Residential
|
Construction,
Land and
Development
|
Home
Equity
Loans and
Lines of
Credit
|
Commercial
and
Industrial
|
Consumer
|
Total
|
||||||||||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||||
Balance at January 1, 2017
|
$
|
10,123
|
|
$
|
2,597
|
|
$
|
7,379
|
|
$
|
4,677
|
|
$
|
648
|
|
$
|
12,245
|
|
$
|
228
|
|
$
|
37,897
|
|
|||||||
Provision (credit) for ASC 310-30 loans
|
(839
|
)
|
—
|
|
31
|
|
(51
|
)
|
—
|
|
(192
|
)
|
(99
|
)
|
(1,150
|
)
|
|||||||||||||||
Provision (credit) for non-ASC 310-30 loans
|
(8
|
)
|
(6
|
)
|
(146
|
)
|
(11
|
)
|
(37
|
)
|
(64
|
)
|
(29
|
)
|
(301
|
)
|
|||||||||||||||
Provision (credit) for New loans
|
4,723
|
|
774
|
|
720
|
|
(227
|
)
|
73
|
|
3,260
|
|
43
|
|
9,366
|
|
|||||||||||||||
Provision (credit) for Unallocated
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,500
|
|
|||||||||||||||
Total provision
|
3,876
|
|
768
|
|
605
|
|
(289
|
)
|
36
|
|
3,004
|
|
(85
|
)
|
9,415
|
|
|||||||||||||||
Charge-offs for ASC 310-30 loans
|
(9
|
)
|
—
|
|
(35
|
)
|
(43
|
)
|
—
|
|
(29
|
)
|
—
|
|
(116
|
)
|
|||||||||||||||
Charge-offs for non-ASC 310-30 loans
|
(30
|
)
|
—
|
|
(69
|
)
|
—
|
|
(7
|
)
|
(3
|
)
|
—
|
|
(109
|
)
|
|||||||||||||||
Charge-offs for New loans
|
(131
|
)
|
—
|
|
—
|
|
—
|
|
(3
|
)
|
(150
|
)
|
—
|
|
(284
|
)
|
|||||||||||||||
Total charge-offs
|
(170
|
)
|
—
|
|
(104
|
)
|
(43
|
)
|
(10
|
)
|
(182
|
)
|
—
|
|
(509
|
)
|
|||||||||||||||
Recoveries for ASC 310-30 loans
|
41
|
|
—
|
|
—
|
|
—
|
|
—
|
|
70
|
|
100
|
|
211
|
|
|||||||||||||||
Recoveries for non-ASC 310-30 loans
|
—
|
|
—
|
|
98
|
|
—
|
|
—
|
|
4
|
|
29
|
|
131
|
|
|||||||||||||||
Recoveries for New loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||||||
Total recoveries
|
41
|
|
—
|
|
98
|
|
—
|
|
—
|
|
74
|
|
129
|
|
342
|
|
|||||||||||||||
Ending ALL balance
|
|||||||||||||||||||||||||||||||
ASC 310-30 loans
|
1,448
|
|
—
|
|
25
|
|
145
|
|
—
|
|
126
|
|
145
|
|
1,889
|
|
|||||||||||||||
Non-ASC 310-30 loans
|
338
|
|
55
|
|
184
|
|
36
|
|
199
|
|
313
|
|
6
|
|
1,131
|
|
|||||||||||||||
New loans
|
12,084
|
|
3,310
|
|
7,769
|
|
4,164
|
|
475
|
|
14,702
|
|
121
|
|
42,625
|
|
|||||||||||||||
Unallocated
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,500
|
|
|||||||||||||||
Balance at December 31, 2017
|
$
|
13,870
|
|
$
|
3,365
|
|
$
|
7,978
|
|
$
|
4,345
|
|
$
|
674
|
|
$
|
15,141
|
|
$
|
272
|
|
$
|
47,145
|
|
Commercial
Real Estate
|
Owner-
Occupied
Commercial
Real Estate
|
1- 4 Single
Family
Residential
|
Construction,
Land and
Development
|
Home
Equity
Loans and
Lines of
Credit
|
Commercial
and
Industrial
|
Consumer
|
Total
|
||||||||||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||||
Balance at January 1, 2016
|
$
|
8,450
|
|
$
|
2,243
|
|
$
|
6,425
|
|
$
|
3,404
|
|
$
|
483
|
|
$
|
7,665
|
|
$
|
456
|
|
$
|
29,126
|
|
|||||||
Provision (credit) for ASC 310-30 loans
|
(124
|
)
|
—
|
|
3
|
|
(128
|
)
|
—
|
|
(108
|
)
|
(156
|
)
|
(513
|
)
|
|||||||||||||||
Provision (credit) for non-ASC 310-30 loans
|
(1,512
|
)
|
(401
|
)
|
(31
|
)
|
11
|
|
(21
|
)
|
316
|
|
8
|
|
(1,630
|
)
|
|||||||||||||||
Provision (credit) for New loans
|
2,024
|
|
756
|
|
982
|
|
1,351
|
|
213
|
|
4,440
|
|
32
|
|
9,798
|
|
|||||||||||||||
Total provision
|
388
|
|
355
|
|
954
|
|
1,234
|
|
192
|
|
4,648
|
|
(116
|
)
|
7,655
|
|
|||||||||||||||
Charge-offs for ASC 310-30 loans
|
(429
|
)
|
—
|
|
(31
|
)
|
(33
|
)
|
—
|
|
(79
|
)
|
(106
|
)
|
(678
|
)
|
|||||||||||||||
Charge-offs for non-ASC 310-30 loans
|
—
|
|
(1
|
)
|
—
|
|
—
|
|
(35
|
)
|
—
|
|
(6
|
)
|
(42
|
)
|
|||||||||||||||
Charge-offs for New loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||||||
Total charge-offs
|
(429
|
)
|
(1
|
)
|
(31
|
)
|
(33
|
)
|
(35
|
)
|
(79
|
)
|
(112
|
)
|
(720
|
)
|
|||||||||||||||
Recoveries for ASC 310-30 loans
|
910
|
|
—
|
|
31
|
|
72
|
|
—
|
|
11
|
|
—
|
|
1,024
|
|
|||||||||||||||
Recoveries for non-ASC 310-30 loans
|
804
|
|
—
|
|
—
|
|
—
|
|
8
|
|
—
|
|
—
|
|
812
|
|
|||||||||||||||
Recoveries for New loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||||||
Total recoveries
|
1,714
|
|
—
|
|
31
|
|
72
|
|
8
|
|
11
|
|
—
|
|
1,836
|
|
|||||||||||||||
Ending ALL balance
|
|||||||||||||||||||||||||||||||
ASC 310-30 loans
|
2,255
|
|
—
|
|
29
|
|
239
|
|
—
|
|
277
|
|
144
|
|
2,944
|
|
|||||||||||||||
Non-ASC 310-30 loans
|
376
|
|
61
|
|
301
|
|
47
|
|
243
|
|
376
|
|
6
|
|
1,410
|
|
|||||||||||||||
New loans
|
7,492
|
|
2,536
|
|
7,049
|
|
4,391
|
|
405
|
|
11,592
|
|
78
|
|
33,543
|
|
|||||||||||||||
Balance at December 31, 2016
|
$
|
10,123
|
|
$
|
2,597
|
|
$
|
7,379
|
|
$
|
4,677
|
|
$
|
648
|
|
$
|
12,245
|
|
$
|
228
|
|
$
|
37,897
|
|
|||||||
|
Commercial
Real Estate
|
Owner-
Occupied
Commercial
Real Estate
|
1- 4 Single
Family
Residential
|
Construction,
Land and
Development
|
Home
Equity
Loans and
Lines of
Credit
|
Commercial
and
Industrial
|
Consumer
|
Total
|
|||||||||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||||
Balance at January 1, 2015
|
$
|
8,206
|
|
$
|
1,020
|
|
$
|
4,740
|
|
$
|
2,456
|
|
$
|
355
|
|
$
|
5,745
|
|
$
|
358
|
|
$
|
22,880
|
|
|||||||
Provision (credit) for ASC 310-30 loans
|
(1,487
|
)
|
—
|
|
(37
|
)
|
(681
|
)
|
—
|
|
(39
|
)
|
175
|
|
(2,069
|
)
|
|||||||||||||||
Provision (credit) for non-ASC 310-30 loans
|
589
|
|
405
|
|
46
|
|
(39
|
)
|
138
|
|
11
|
|
6
|
|
1,156
|
|
|||||||||||||||
Provision (credit) for New loans
|
1,012
|
|
818
|
|
2,066
|
|
1,317
|
|
122
|
|
2,417
|
|
(16
|
)
|
7,736
|
|
|||||||||||||||
Total provision
|
114
|
|
1,223
|
|
2,075
|
|
597
|
|
260
|
|
2,389
|
|
165
|
|
6,823
|
|
|||||||||||||||
Charge-offs for ASC 310-30 loans
|
(270
|
)
|
—
|
|
(436
|
)
|
(56
|
)
|
—
|
|
(643
|
)
|
(60
|
)
|
(1,465
|
)
|
|||||||||||||||
Charge-offs for non-ASC 310-30 loans
|
—
|
|
—
|
|
(128
|
)
|
—
|
|
(132
|
)
|
—
|
|
(8
|
)
|
(268
|
)
|
|||||||||||||||
Charge-offs for New loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(15
|
)
|
—
|
|
(15
|
)
|
|||||||||||||||
Total charge-offs
|
(270
|
)
|
—
|
|
(564
|
)
|
(56
|
)
|
(132
|
)
|
(658
|
)
|
(68
|
)
|
(1,748
|
)
|
|||||||||||||||
Recoveries for ASC 310-30 loans
|
400
|
|
—
|
|
174
|
|
407
|
|
—
|
|
177
|
|
1
|
|
1,159
|
|
|||||||||||||||
Recoveries for non-ASC 310-30 loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||||||
Recoveries for New loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
12
|
|
—
|
|
12
|
|
|||||||||||||||
Total recoveries
|
400
|
|
—
|
|
174
|
|
407
|
|
—
|
|
189
|
|
1
|
|
1,171
|
|
|||||||||||||||
Ending ALL balance
|
|||||||||||||||||||||||||||||||
ASC 310-30 loans
|
1,898
|
|
—
|
|
26
|
|
328
|
|
—
|
|
453
|
|
406
|
|
3,111
|
|
|||||||||||||||
Non-ASC 310-30 loans
|
1,084
|
|
463
|
|
332
|
|
36
|
|
291
|
|
60
|
|
4
|
|
2,270
|
|
|||||||||||||||
New loans
|
5,468
|
|
1,780
|
|
6,067
|
|
3,040
|
|
192
|
|
7,152
|
|
46
|
|
23,745
|
|
|||||||||||||||
Balance at December 31, 2015
|
$
|
8,450
|
|
$
|
2,243
|
|
$
|
6,425
|
|
$
|
3,404
|
|
$
|
483
|
|
$
|
7,665
|
|
$
|
456
|
|
$
|
29,126
|
|
|
Accruing
|
|
|
||||||||||||||||
December 31, 2017
|
30 to 59
Days Past
Due
|
60 to 89
Days Past
Due
|
90 Days or
More Past
Due
|
Non-
Accrual
|
Total
|
||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
New loans:
|
|||||||||||||||||||
Real estate loans:
|
|||||||||||||||||||
Commercial real estate
|
$
|
324
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
324
|
|
||||
Owner-occupied commercial real estate
|
843
|
|
150
|
|
—
|
|
—
|
|
993
|
|
|||||||||
1-4 single family residential
|
1,179
|
|
1,310
|
|
—
|
|
3,167
|
|
5,656
|
|
|||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Home equity loans and lines of credit
|
—
|
|
—
|
|
—
|
|
126
|
|
126
|
|
|||||||||
Total real estate loans
|
$
|
2,346
|
|
$
|
1,460
|
|
$
|
—
|
|
$
|
3,293
|
|
$
|
7,099
|
|
||||
Other loans:
|
|||||||||||||||||||
Commercial and industrial
|
$
|
4,980
|
|
$
|
2,167
|
|
$
|
—
|
|
$
|
—
|
|
$
|
7,147
|
|
||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Total other loans
|
4,980
|
|
2,167
|
|
—
|
|
—
|
|
7,147
|
|
|||||||||
Total New loans
|
$
|
7,326
|
|
$
|
3,627
|
|
$
|
—
|
|
$
|
3,293
|
|
$
|
14,246
|
|
||||
Acquired loans:
|
|||||||||||||||||||
Real estate loans:
|
|||||||||||||||||||
Commercial real estate
|
$
|
360
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3,893
|
|
$
|
4,253
|
|
||||
Owner-occupied commercial real estate
|
290
|
|
—
|
|
—
|
|
494
|
|
784
|
|
|||||||||
1-4 single family residential
|
892
|
|
44
|
|
—
|
|
1,331
|
|
2,267
|
|
|||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Home equity loans and lines of credit
|
1,128
|
|
—
|
|
—
|
|
1,720
|
|
2,848
|
|
|||||||||
Total real estate loans
|
$
|
2,670
|
|
$
|
44
|
|
$
|
—
|
|
$
|
7,438
|
|
$
|
10,152
|
|
||||
Other loans:
|
|||||||||||||||||||
Commercial and industrial
|
$
|
101
|
|
$
|
—
|
|
$
|
—
|
|
$
|
394
|
|
$
|
495
|
|
||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Total other loans
|
101
|
|
—
|
|
—
|
|
394
|
|
495
|
|
|||||||||
Total acquired loans
|
$
|
2,771
|
|
$
|
44
|
|
$
|
—
|
|
$
|
7,832
|
|
$
|
10,647
|
|
|
Accruing
|
|
|
||||||||||||||||
December 31, 2016
|
30 to 59
Days Past
Due
|
60 to 89
Days Past
Due
|
90 Days or
More Past
Due
|
Non-
Accrual
|
Total
|
||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
New loans:
|
|||||||||||||||||||
Real estate loans:
|
|||||||||||||||||||
Commercial real estate
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
581
|
|
$
|
581
|
|
||||
Owner-occupied commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
1-4 single family residential
|
1,593
|
|
—
|
|
—
|
|
1,821
|
|
3,414
|
|
|||||||||
Construction, land and development
|
449
|
|
—
|
|
—
|
|
—
|
|
449
|
|
|||||||||
Home equity loans and lines of credit
|
255
|
|
—
|
|
—
|
|
243
|
|
498
|
|
|||||||||
Total real estate loans
|
$
|
2,297
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,645
|
|
|
$
|
4,942
|
|
Other loans:
|
|||||||||||||||||||
Commercial and industrial
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Total other loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total New loans
|
$
|
2,297
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2,645
|
|
$
|
4,942
|
|
||||
Acquired Loans:
|
|||||||||||||||||||
Real estate loans:
|
|||||||||||||||||||
Commercial real estate
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
4,720
|
|
$
|
4,720
|
|
||||
Owner-occupied commercial real estate
|
93
|
|
—
|
|
—
|
|
2,502
|
|
2,595
|
|
|||||||||
1-4 single family residential
|
207
|
|
—
|
|
—
|
|
2,728
|
|
2,935
|
|
|||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Home equity loans and lines of credit
|
520
|
|
42
|
|
—
|
|
2,557
|
|
3,119
|
|
|||||||||
Total real estate loans
|
$
|
820
|
|
|
$
|
42
|
|
|
$
|
—
|
|
|
$
|
12,507
|
|
|
$
|
13,369
|
|
Other loans:
|
|||||||||||||||||||
Commercial and industrial
|
$
|
—
|
|
$
|
128
|
|
$
|
—
|
|
$
|
325
|
|
$
|
453
|
|
||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Total other loans
|
—
|
|
|
128
|
|
|
—
|
|
|
325
|
|
|
453
|
|
|||||
Total acquired loans
|
$
|
820
|
|
|
$
|
170
|
|
|
$
|
—
|
|
|
$
|
12,832
|
|
|
$
|
13,822
|
|
December 31, 2017
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
|||||||||||
|
(Dollars in thousands)
|
||||||||||||||
New loans:
|
|||||||||||||||
Commercial real estate
|
$
|
2,095,560
|
|
$
|
6,066
|
|
$
|
2,162
|
|
$
|
—
|
|
|||
Owner-occupied commercial real estate
|
987,781
|
|
—
|
|
—
|
|
—
|
|
|||||||
Construction, land and development
|
684,462
|
|
—
|
|
—
|
|
—
|
|
|||||||
Commercial and industrial
|
1,617,462
|
|
16,910
|
|
—
|
|
—
|
|
|||||||
Total New loans
|
$
|
5,385,265
|
|
$
|
22,976
|
|
$
|
2,162
|
|
$
|
—
|
|
|||
Acquired loans:
|
|||||||||||||||
Commercial real estate
|
$
|
33,496
|
|
$
|
—
|
|
$
|
4,240
|
|
$
|
—
|
|
|||
Owner-occupied commercial real estate
|
15,607
|
|
—
|
|
493
|
|
—
|
|
|||||||
Construction, land and development
|
5,889
|
|
—
|
|
—
|
|
—
|
|
|||||||
Commercial and industrial
|
4,324
|
|
—
|
|
738
|
|
—
|
|
|||||||
Total acquired loans
|
$
|
59,316
|
|
$
|
—
|
|
$
|
5,471
|
|
$
|
—
|
|
|||
December 31, 2016
|
Pass
|
Special
Mention |
Substandard
|
Doubtful
|
|||||||||||
|
(Dollars in thousands)
|
||||||||||||||
New loans:
|
|||||||||||||||
Commercial real estate
|
$
|
1,435,633
|
|
$
|
—
|
|
$
|
2,794
|
|
$
|
—
|
|
|||
Owner-occupied commercial real estate
|
769,640
|
|
174
|
|
—
|
|
—
|
|
|||||||
Construction, land and development
|
651,253
|
|
—
|
|
—
|
|
—
|
|
|||||||
Commercial and industrial
|
1,332,869
|
|
—
|
|
—
|
|
—
|
|
|||||||
Total New loans
|
$
|
4,189,395
|
|
$
|
174
|
|
$
|
2,794
|
|
$
|
—
|
|
|||
Acquired loans:
|
|||||||||||||||
Commercial real estate
|
$
|
33,705
|
|
$
|
—
|
|
$
|
5,081
|
|
$
|
—
|
|
|||
Owner-occupied commercial real estate
|
18,388
|
|
—
|
|
89
|
|
—
|
|
|||||||
Construction, land and development
|
6,338
|
|
—
|
|
—
|
|
—
|
|
|||||||
Commercial and industrial
|
5,134
|
|
—
|
|
681
|
|
—
|
|
|||||||
Total acquired loans
|
$
|
63,565
|
|
$
|
—
|
|
$
|
5,851
|
|
$
|
—
|
|
|
Loans - Recorded Investment
|
Allowance for Credit Loss
|
|||||||||||||||||||||
December 31, 2017
|
Individually
Evaluated for
Impairment
|
Collectively
Evaluated for
Impairment
|
ASC 310-
30 Loans
|
Individually
Evaluated for
Impairment
|
Collectively
Evaluated for
Impairment
|
ASC 310-
30 Loans
|
|||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
New loans:
|
|||||||||||||||||||||||
Real estate loans:
|
|||||||||||||||||||||||
Commercial real estate
|
$
|
—
|
|
$
|
2,103,788
|
|
$
|
—
|
|
$
|
—
|
|
$
|
12,084
|
|
$
|
—
|
|
|||||
Owner-occupied commercial real estate
|
—
|
|
987,781
|
|
—
|
|
—
|
|
3,310
|
|
—
|
|
|||||||||||
1-4 single family residential
|
1,096
|
|
2,184,266
|
|
—
|
|
—
|
|
7,769
|
|
—
|
|
|||||||||||
Construction, land and development
|
—
|
|
684,462
|
|
—
|
|
—
|
|
4,164
|
|
—
|
|
|||||||||||
Home equity loans and lines of credit
|
130
|
|
59,506
|
|
—
|
|
66
|
|
409
|
|
—
|
|
|||||||||||
Total real estate loans
|
$
|
1,226
|
|
$
|
6,019,803
|
|
$
|
—
|
|
$
|
66
|
|
$
|
27,736
|
|
$
|
—
|
|
|||||
Other loans
|
|||||||||||||||||||||||
Commercial and industrial
|
$
|
—
|
|
$
|
1,634,372
|
|
$
|
—
|
|
$
|
—
|
|
$
|
14,702
|
|
$
|
—
|
|
|||||
Consumer
|
—
|
|
5,984
|
|
—
|
|
—
|
|
121
|
|
—
|
|
|||||||||||
Total other loans
|
$
|
—
|
|
$
|
1,640,356
|
|
$
|
—
|
|
$
|
—
|
|
$
|
14,823
|
|
$
|
—
|
|
|||||
Acquired loans:
|
|||||||||||||||||||||||
Real estate loans:
|
|||||||||||||||||||||||
Commercial real estate
|
$
|
3,893
|
|
$
|
33,843
|
|
$
|
104,335
|
|
$
|
129
|
|
$
|
209
|
|
$
|
1,448
|
|
|||||
Owner-occupied commercial real estate
|
—
|
|
16,100
|
|
—
|
|
—
|
|
55
|
|
—
|
|
|||||||||||
1-4 single family residential
|
267
|
|
57,428
|
|
27,513
|
|
—
|
|
184
|
|
25
|
|
|||||||||||
Construction, land and development
|
—
|
|
5,889
|
|
13,167
|
|
—
|
|
36
|
|
145
|
|
|||||||||||
Home equity loans and lines of credit
|
495
|
|
34,094
|
|
—
|
|
—
|
|
199
|
|
—
|
|
|||||||||||
Total real estate loans
|
$
|
4,655
|
|
$
|
147,354
|
|
$
|
145,015
|
|
$
|
129
|
|
$
|
683
|
|
$
|
1,618
|
|
|||||
Other loans
|
|||||||||||||||||||||||
Commercial and industrial
|
272
|
|
4,790
|
|
12,631
|
|
272
|
|
41
|
|
126
|
|
|||||||||||
Consumer
|
—
|
|
259
|
|
1,423
|
|
—
|
|
6
|
|
145
|
|
|||||||||||
Total other loans
|
$
|
272
|
|
$
|
5,049
|
|
$
|
14,054
|
|
$
|
272
|
|
$
|
47
|
|
$
|
271
|
|
|||||
Total Loans:
|
|||||||||||||||||||||||
Unallocated
|
$
|
—
|
|
$
|
7,977,784
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,500
|
|
$
|
—
|
|
|
Loans - Recorded Investment
|
Allowance for Credit Loss
|
|||||||||||||||||||||
December 31, 2016
|
Individually
Evaluated for
Impairment
|
Collectively
Evaluated for
Impairment
|
ASC 310-
30 Loans
|
Individually
Evaluated for
Impairment
|
Collectively
Evaluated for
Impairment
|
ASC 310-
30 Loans
|
|||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
New loans:
|
|||||||||||||||||||||||
Real estate loans:
|
|||||||||||||||||||||||
Commercial real estate
|
$
|
581
|
|
$
|
1,437,846
|
|
$
|
—
|
|
$
|
221
|
|
$
|
7,271
|
|
$
|
—
|
|
|||||
Owner-occupied commercial real estate
|
—
|
|
769,814
|
|
—
|
|
—
|
|
2,536
|
|
—
|
|
|||||||||||
1-4 single family residential
|
524
|
|
2,012,332
|
|
—
|
|
—
|
|
7,049
|
|
—
|
|
|||||||||||
Construction, land and development
|
—
|
|
651,253
|
|
—
|
|
—
|
|
4,391
|
|
—
|
|
|||||||||||
Home equity loans and lines of credit
|
66
|
|
49,753
|
|
—
|
|
66
|
|
339
|
|
—
|
|
|||||||||||
Total real estate loans
|
$
|
1,171
|
|
$
|
4,920,998
|
|
$
|
—
|
|
$
|
287
|
|
$
|
21,586
|
|
$
|
—
|
|
|||||
Other loans
|
|||||||||||||||||||||||
Commercial and industrial
|
—
|
|
1,332,869
|
|
—
|
|
—
|
|
11,592
|
|
—
|
|
|||||||||||
Consumer
|
—
|
|
4,368
|
|
—
|
|
—
|
|
78
|
|
—
|
|
|||||||||||
Total other loans
|
$
|
—
|
|
$
|
1,337,237
|
|
$
|
—
|
|
$
|
—
|
|
$
|
11,670
|
|
$
|
—
|
|
|||||
Acquired Loans:
|
|||||||||||||||||||||||
Real estate loans:
|
|||||||||||||||||||||||
Commercial real estate
|
$
|
4,720
|
|
$
|
34,066
|
|
$
|
130,628
|
|
$
|
175
|
|
$
|
201
|
|
$
|
2,255
|
|
|||||
Owner-occupied commercial real estate
|
—
|
|
18,477
|
|
—
|
|
—
|
|
61
|
|
—
|
|
|||||||||||
1-4 single family residential
|
1,612
|
|
65,242
|
|
31,476
|
|
88
|
|
213
|
|
29
|
|
|||||||||||
Construction, land and development
|
—
|
|
6,338
|
|
17,657
|
|
—
|
|
47
|
|
239
|
|
|||||||||||
Home equity loans and lines of credit
|
1,050
|
|
41,245
|
|
—
|
|
—
|
|
243
|
|
—
|
|
|||||||||||
Total real estate loans
|
$
|
7,382
|
|
$
|
165,368
|
|
$
|
179,761
|
|
$
|
263
|
|
$
|
765
|
|
$
|
2,523
|
|
|||||
Other loans
|
|||||||||||||||||||||||
Commercial and industrial
|
325
|
|
5,490
|
|
15,147
|
|
325
|
|
51
|
|
277
|
|
|||||||||||
Consumer
|
—
|
|
334
|
|
1,681
|
|
—
|
|
6
|
|
144
|
|
|||||||||||
Total other loans
|
$
|
325
|
|
$
|
5,824
|
|
$
|
16,828
|
|
$
|
325
|
|
$
|
57
|
|
$
|
421
|
|
|
Impaired Loans - With Allowance
|
Impaired Loans - With no
Allowance
|
|||||||||||||||||
December 31, 2017
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
New loans:
|
|||||||||||||||||||
Real estate loans:
|
|||||||||||||||||||
Commercial real estate
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
||||
Owner-occupied commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
1-4 single family residential
|
—
|
|
—
|
|
—
|
|
1,096
|
|
1,096
|
|
|||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Home equity loans and lines of credit
|
66
|
|
66
|
|
66
|
|
63
|
|
63
|
|
|||||||||
Total real estate loans
|
$
|
66
|
|
$
|
66
|
|
$
|
66
|
|
$
|
1,159
|
|
$
|
1,159
|
|
||||
Other loans
|
|||||||||||||||||||
Commercial and industrial
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Total other loans
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
||||
Acquired loans:
|
|||||||||||||||||||
Real estate loans:
|
|||||||||||||||||||
Commercial real estate
|
$
|
336
|
|
$
|
347
|
|
$
|
129
|
|
$
|
3,557
|
|
$
|
4,991
|
|
||||
Owner-occupied commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
1-4 single family residential
|
—
|
|
—
|
|
—
|
|
267
|
|
267
|
|
|||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Home equity loans and lines of credit
|
—
|
|
—
|
|
—
|
|
495
|
|
495
|
|
|||||||||
Total real estate loans
|
$
|
336
|
|
$
|
347
|
|
$
|
129
|
|
$
|
4,319
|
|
$
|
5,753
|
|
||||
Other loans
|
|||||||||||||||||||
Commercial and industrial
|
272
|
|
272
|
|
272
|
|
—
|
|
—
|
|
|||||||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Total other loans
|
$
|
272
|
|
$
|
272
|
|
$
|
272
|
|
$
|
—
|
|
$
|
—
|
|
|
Impaired Loans - With Allowance
|
Impaired Loans - With no
Allowance
|
|||||||||||||||||
December 31, 2016
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
New loans:
|
|||||||||||||||||||
Real estate loans:
|
|||||||||||||||||||
Commercial real estate
|
$
|
581
|
|
$
|
581
|
|
$
|
221
|
|
$
|
—
|
|
$
|
—
|
|
||||
Owner-occupied commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
1-4 single family residential
|
—
|
|
—
|
|
—
|
|
524
|
|
524
|
|
|||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Home equity loans and lines of credit
|
66
|
|
66
|
|
66
|
|
—
|
|
—
|
|
|||||||||
Total real estate loans
|
$
|
647
|
|
$
|
647
|
|
$
|
287
|
|
$
|
524
|
|
$
|
524
|
|
||||
Other loans
|
|||||||||||||||||||
Commercial and industrial
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Total other loans
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
||||
Acquired loans:
|
|||||||||||||||||||
Real estate loans:
|
|||||||||||||||||||
Commercial real estate
|
$
|
630
|
|
$
|
650
|
|
$
|
175
|
|
$
|
4,090
|
|
$
|
5,397
|
|
||||
Owner-occupied commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
1-4 single family residential
|
565
|
|
512
|
|
88
|
|
1,047
|
|
1,047
|
|
|||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Home equity loans and lines of credit
|
—
|
|
—
|
|
—
|
|
1,050
|
|
1,415
|
|
|||||||||
Total real estate loans
|
$
|
1,195
|
|
$
|
1,162
|
|
$
|
263
|
|
$
|
6,187
|
|
$
|
7,859
|
|
||||
Other loans
|
|||||||||||||||||||
Commercial and industrial
|
325
|
|
325
|
|
325
|
|
—
|
|
—
|
|
|||||||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Total other loans
|
$
|
325
|
|
$
|
325
|
|
$
|
325
|
|
$
|
—
|
|
$
|
—
|
|
|
Years Ended December 31,
|
||||||||||||||
|
2017
|
2016
|
|||||||||||||
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||
|
(Dollars in thousands)
|
||||||||||||||
Impaired loans with no related allowance:
|
|||||||||||||||
Real estate loans:
|
|||||||||||||||
Commercial real estate
|
$
|
3,653
|
|
$
|
—
|
|
$
|
4,245
|
|
$
|
—
|
|
|||
Owner-occupied commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
1-4 single family residential
|
1,363
|
|
—
|
|
816
|
|
—
|
|
|||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Home equity loans and lines of credit
|
670
|
|
—
|
|
1,272
|
|
—
|
|
|||||||
Total real estate loans
|
$
|
5,686
|
|
|
$
|
—
|
|
|
$
|
6,333
|
|
|
$
|
—
|
|
Other loans:
|
|||||||||||||||
Commercial and industrial
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Total other loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Impaired loans with an allowance:
|
|||||||||||||||
Real estate loans:
|
|||||||||||||||
Commercial real estate
|
$
|
480
|
|
$
|
—
|
|
$
|
959
|
|
$
|
—
|
|
|||
Owner-occupied commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
1-4 single family residential
|
—
|
|
—
|
|
424
|
|
—
|
|
|||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Home equity loans and lines of credit
|
66
|
|
—
|
|
44
|
|
—
|
|
|||||||
Total real estate loans
|
$
|
546
|
|
|
$
|
—
|
|
|
$
|
1,427
|
|
|
$
|
—
|
|
Other loans:
|
|||||||||||||||
Commercial and industrial
|
317
|
|
—
|
|
170
|
|
—
|
|
|||||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Total other loans
|
$
|
317
|
|
|
$
|
—
|
|
|
$
|
170
|
|
|
$
|
—
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Balance at beginning of period
|
$
|
—
|
|
$
|
—
|
|
$
|
63,168
|
|
||
Termination of FDIC loss sharing agreements
|
—
|
|
—
|
|
(63,168
|
)
|
|||||
Balance at end of period
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Balance at beginning of period
|
$
|
—
|
|
$
|
—
|
|
$
|
13,846
|
|
||
Termination of FDIC loss sharing agreements
|
—
|
|
—
|
|
(13,846
|
)
|
|||||
Balance at end of period
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
December 31,
|
||||||
|
2017
|
2016
|
|||||
|
(Dollars in thousands)
|
||||||
Land
|
$
|
7,624
|
|
$
|
7,624
|
|
|
Building and improvements
|
24,653
|
|
24,653
|
|
|||
Furniture, fixtures and equipment
|
14,956
|
|
13,197
|
|
|||
Leasehold improvements
|
5,164
|
|
4,454
|
|
|||
Construction in Process
|
663
|
|
525
|
|
|||
Software
|
3,354
|
|
3,021
|
|
|||
Total
|
56,414
|
|
53,474
|
|
|||
Less: Accumulated depreciation
|
(20,270
|
)
|
(16,822
|
)
|
|||
Total premises and equipment, net
|
$
|
36,144
|
|
$
|
36,652
|
|
Years Ended December 31,
|
|||||||||||||||||||||
2018
|
2019
|
2020
|
2021
|
2022
|
Thereafter
|
Total
|
|||||||||||||||
Future minimum lease payments
|
$
|
5,205
|
|
$
|
4,707
|
|
$
|
4,438
|
|
$
|
3,145
|
|
$
|
2,398
|
|
$
|
12,431
|
|
$
|
32,324
|
|
|
December 31,
|
||||||
|
2017
|
2016
|
|||||
|
(Dollars in thousands)
|
||||||
Goodwill
|
$
|
81,204
|
|
$
|
81,204
|
|
|
Core deposit intangible
|
14,370
|
|
14,370
|
|
|||
Less: Accumulated amortization
|
(10,702
|
)
|
(9,679
|
)
|
|||
Net core deposit intangible
|
$
|
3,668
|
|
$
|
4,691
|
|
2018
|
2019
|
2020
|
2021
|
2022
|
|||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Core deposit intangible
|
$
|
1,023
|
|
$
|
1,023
|
|
$
|
510
|
|
$
|
360
|
|
$
|
360
|
|
|
Derivative Assets
|
Derivative Liabilities
|
|||||||||||||
December 31, 2017
|
Notional
|
Fair Value
|
Notional
|
Fair Value
|
|||||||||||
|
(Dollars in thousands)
|
||||||||||||||
Derivatives not designated as hedging
instruments under ASC Topic 815-10
|
|||||||||||||||
Interest rate swaps—pay floating, receive fixed
|
$
|
757,887
|
|
$
|
11,678
|
|
$
|
380,233
|
|
$
|
4,180
|
|
|||
Interest rate swaps—pay fixed, receive floating
|
380,233
|
|
—
|
|
757,887
|
|
7,498
|
|
|||||||
Interest rate caps—purchased
|
94,884
|
|
155
|
|
—
|
|
—
|
|
|||||||
Interest rate caps—sold
|
—
|
|
—
|
|
94,884
|
|
155
|
|
|||||||
Total derivatives
|
$
|
1,233,004
|
|
|
$
|
11,833
|
|
|
$
|
1,233,004
|
|
|
$
|
11,833
|
|
|
Derivative Assets
|
Derivative Liabilities
|
|||||||||||||
December 31, 2016
|
Notional
|
Fair Value
|
Notional
|
Fair Value
|
|||||||||||
|
(Dollars in thousands)
|
||||||||||||||
Derivatives not designated as hedging
instruments under ASC Topic 815-10
|
|||||||||||||||
Interest rate swaps—pay floating, receive fixed
|
$
|
708,426
|
|
$
|
15,268
|
|
$
|
182,848
|
|
$
|
2,908
|
|
|||
Interest rate swaps—pay fixed, receive floating
|
182,848
|
|
—
|
|
708,426
|
|
12,360
|
|
|||||||
Total derivatives
|
$
|
891,274
|
|
$
|
15,268
|
|
$
|
891,274
|
|
$
|
15,268
|
|
December 31, 2017
|
Gross
amounts
of recognized
liabilities
|
Gross
amounts
offset in the
consolidated
balance
sheets
|
Net amounts
in the
consolidated
balance
sheets
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Offsetting derivative liabilities
|
|||||||||||
Counterparty A—Interest rate contracts
|
$
|
11,833
|
|
$
|
(4,491
|
)
|
$
|
7,342
|
|
||
Total
|
$
|
11,833
|
|
$
|
(4,491
|
)
|
$
|
7,342
|
|
December 31, 2016
|
Gross
amounts
of recognized
liabilities
|
Gross
amounts
offset in the
consolidated
balance
sheets
|
Net amounts
in the
consolidated
balance
sheets
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Offsetting derivative liabilities
|
|||||||||||
Counterparty A—Interest rate contracts
|
$
|
15,268
|
|
$
|
(2,908
|
)
|
$
|
12,360
|
|
||
Total
|
$
|
15,268
|
|
$
|
(2,908
|
)
|
$
|
12,360
|
|
|
December 31,
|
||||||
|
2017
|
2016
|
|||||
|
(Dollars in thousands)
|
||||||
Noninterest-bearing demand deposits
|
$
|
1,236,685
|
|
$
|
905,905
|
|
|
Interest-bearing demand deposits
|
1,454,097
|
|
1,004,452
|
|
|||
Interest-bearing NOW accounts
|
363,191
|
|
398,823
|
|
|||
Savings and money market accounts
|
3,013,237
|
|
2,780,697
|
|
|||
Time deposits
|
2,606,717
|
|
2,215,794
|
|
|||
Total deposits
|
$
|
8,673,927
|
|
$
|
7,305,671
|
|
|
Time deposits $100,000 and greater
|
$
|
1,983,445
|
|
$
|
1,675,162
|
|
|
Time deposits greater than $250,000
|
1,078,702
|
|
843,683
|
|
December 31, 2017
|
Range of
Contractual
Interest Rates
|
|||||
|
(Dollars in thousands)
|
|||||
Repayable during the years ending December 31,
|
||||||
2018
|
$
|
270,000
|
|
1.41% - 1.59%
|
|
|
2019
|
—
|
|
—
|
%
|
||
2020 and beyond
|
400,000
|
|
1.34% - 2.28%
|
|
||
Total FHLB advances
|
670,000
|
|
||||
Securities sold under repurchase agreements
|
50,336
|
|
1.87% - 2.41%
|
|
||
Retail repurchase agreements
|
28,777
|
|
0.25
|
%
|
||
Total contractual outstanding
|
749,113
|
|
||||
Fair value adjustment
|
—
|
|
||||
Total Borrowings
|
$
|
749,113
|
|
December 31, 2016
|
Range of
Contractual
Interest Rates
|
|||||
|
||||||
Repayable during the years ending December 31,
|
||||||
2017
|
$
|
342,250
|
|
0.62% - 0.80%
|
|
|
2018
|
50,000
|
|
1.53
|
%
|
||
2019 and beyond
|
200,000
|
|
1.34% - 1.61%
|
|
||
Total FHLB advances
|
592,250
|
|
||||
Securities sold under repurchase agreements
|
131,621
|
|
1.40% - 4.35%
|
|
||
Retail repurchase agreements
|
26,386
|
|
0.25
|
%
|
||
Total contractual outstanding
|
750,257
|
|
||||
Fair value adjustment
|
846
|
|
||||
Total Borrowings
|
$
|
751,103
|
|
|
Actual
|
Minimum Capital Requirement
|
Minimum To Be Well
Capitalized
|
|||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
December 31, 2017
|
||||||||||||||||||||
Tier 1 leverage ratio
|
||||||||||||||||||||
Company
|
$
|
1,079,851
|
|
10.5
|
%
|
$
|
411,177
|
|
4.0
|
%
|
$
|
513,972
|
|
5.0
|
%
|
|||||
Bank
|
927,426
|
|
9.2
|
%
|
403,527
|
|
4.0
|
%
|
504,409
|
|
5.0
|
%
|
||||||||
Common equity tier 1 capital ratio
|
||||||||||||||||||||
Company
|
1,079,851
|
|
11.9
|
%
|
409,482
|
|
4.5
|
%
|
591,475
|
|
6.5
|
%
|
||||||||
Bank
|
927,426
|
|
10.4
|
%
|
400,187
|
|
4.5
|
%
|
578,047
|
|
6.5
|
%
|
||||||||
Tier 1 risk-based capital ratio
|
||||||||||||||||||||
Company
|
1,079,851
|
|
11.9
|
%
|
545,977
|
|
6.0
|
%
|
727,969
|
|
8.0
|
%
|
||||||||
Bank
|
927,426
|
|
10.4
|
%
|
533,582
|
|
6.0
|
%
|
711,443
|
|
8.0
|
%
|
||||||||
Total risk-based capital ratio
|
||||||||||||||||||||
Company
|
1,128,889
|
|
12.4
|
%
|
727,969
|
|
8.0
|
%
|
909,961
|
|
10.0
|
%
|
||||||||
Bank
|
975,663
|
|
11.0
|
%
|
711,443
|
|
8.0
|
%
|
889,304
|
|
10.0
|
%
|
|
Actual
|
Minimum Capital Requirement
|
Minimum To Be Well
Capitalized
|
|||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
December 31, 2016
|
||||||||||||||||||||
Tier 1 leverage ratio
|
||||||||||||||||||||
Company
|
$
|
891,584
|
|
10.3
|
%
|
$
|
346,518
|
|
4.0
|
%
|
$
|
433,148
|
|
5.0
|
%
|
|||||
Bank
|
795,207
|
|
9.3
|
%
|
340,856
|
|
4.0
|
%
|
426,070
|
|
5.0
|
%
|
||||||||
Common equity tier 1 capital ratio
|
||||||||||||||||||||
Company
|
891,584
|
|
11.9
|
%
|
336,328
|
|
4.5
|
%
|
485,807
|
|
6.5
|
%
|
||||||||
Bank
|
795,207
|
|
10.9
|
%
|
329,194
|
|
4.5
|
%
|
475,503
|
|
6.5
|
%
|
||||||||
Tier 1 risk-based capital ratio
|
||||||||||||||||||||
Company
|
891,584
|
|
11.9
|
%
|
448,437
|
|
6.0
|
%
|
597,916
|
|
8.0
|
%
|
||||||||
Bank
|
795,207
|
|
10.9
|
%
|
438,926
|
|
6.0
|
%
|
585,234
|
|
8.0
|
%
|
||||||||
Total risk-based capital ratio
|
||||||||||||||||||||
Company
|
930,821
|
|
12.5
|
%
|
597,916
|
|
8.0
|
%
|
747,395
|
|
10.0
|
%
|
||||||||
Bank
|
834,679
|
|
11.4
|
%
|
585,234
|
|
8.0
|
%
|
731,543
|
|
10.0
|
%
|
|
Year Ended December 31, 2017
|
||||||||||
|
Before
Tax
|
Tax
Effect
|
Net
of Tax
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Balance at beginning of period
|
$
|
(6,504
|
)
|
$
|
2,509
|
|
$
|
(3,995
|
)
|
||
Unrealized gain (loss) on investment securities available for sale:
|
|||||||||||
Net unrealized holdings gain (loss) arising during the period
|
24,112
|
|
(9,244
|
)
|
14,868
|
|
|||||
Amounts reclassified to (gain) loss on investment securities
|
(3,206
|
)
|
1,226
|
|
(1,980
|
)
|
|||||
Balance at end of period
|
$
|
14,402
|
|
$
|
(5,509
|
)
|
$
|
8,893
|
|
|
Year Ended December 31, 2016
|
||||||||||
|
Before
Tax
|
Tax
Effect
|
Net
of Tax
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Balance at beginning of period
|
$
|
(15,371
|
)
|
$
|
5,928
|
|
$
|
(9,443
|
)
|
||
Unrealized gain (loss) on investment securities available for sale:
|
|||||||||||
Net unrealized holdings gain (loss) arising during the period
|
11,582
|
|
(4,467
|
)
|
7,115
|
|
|||||
Amounts reclassified to (gain) loss on investment securities
|
(2,715
|
)
|
1,048
|
|
(1,667
|
)
|
|||||
Balance at end of period
|
$
|
(6,504
|
)
|
$
|
2,509
|
|
$
|
(3,995
|
)
|
|
Year Ended December 31, 2015
|
||||||||||
|
Before
Tax
|
Tax
Effect
|
Net
of Tax
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Balance at beginning of period
|
$
|
1,106
|
|
$
|
(427
|
)
|
$
|
679
|
|
||
Unrealized gain (loss) on investment securities available for sale:
|
|||||||||||
Net unrealized holdings gain (loss) arising during the period
|
(13,997
|
)
|
5,399
|
|
(8,598
|
)
|
|||||
Amounts reclassified to (gain) loss on investment securities
|
(2,480
|
)
|
956
|
|
(1,524
|
)
|
|||||
Balance at end of period
|
$
|
(15,371
|
)
|
$
|
5,928
|
|
$
|
(9,443
|
)
|
|
Amended 2009 Warrants
|
|||||||||||
|
Warrants
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
||||||||
|
(Dollars in thousands, except per share data)
|
|||||||||||
Outstanding at January 1, 2017
|
2,685,927
|
|
$
|
26.48
|
|
|||||||
Granted
|
—
|
|
—
|
|
||||||||
Exercised
|
(1,411,905
|
)
|
26.24
|
|
$
|
31,895
|
|
|||||
Forfeited
|
—
|
|
—
|
|
||||||||
Expired
|
—
|
|
—
|
|
||||||||
Outstanding at December 31, 2017
|
1,274,022
|
|
26.75
|
|
30,640
|
|
1.87
|
|||||
Exercisable at December 31, 2017
|
1,274,022
|
|
26.75
|
|
30,640
|
|
1.87
|
|||||
Vested at December 31, 2017
|
1,274,022
|
|
26.75
|
|
30,640
|
|
1.87
|
|||||
Vested and expected to vest at December 31, 2017
|
1,274,022
|
|
26.75
|
|
30,640
|
|
1.87
|
|
2009 Option Plan
|
|||||||||||
|
Options
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
||||||||
|
(Dollars in thousands, except per share data)
|
|||||||||||
Outstanding at January 1, 2017
|
3,107,235
|
|
$
|
20.62
|
|
|||||||
Granted
|
—
|
|
—
|
|
||||||||
Exercised
|
(1,768,652
|
)
|
20.58
|
|
$
|
47,180
|
|
|||||
Forfeited
|
(21,322
|
)
|
22.72
|
|
||||||||
Expired
|
(2,337
|
)
|
22.97
|
|
||||||||
Outstanding at December 31, 2017
|
1,314,924
|
|
20.65
|
|
39,651
|
|
4.49
|
|||||
Exercisable at December 31, 2017
|
1,314,924
|
|
20.65
|
|
39,651
|
|
4.49
|
|||||
Vested at December 31, 2017
|
1,314,924
|
|
20.65
|
|
39,651
|
|
4.49
|
|||||
Vested and expected to vest at December 31, 2017
|
1,314,924
|
|
20.65
|
|
39,651
|
|
4.49
|
|
2009 Option Plan
|
||||||||||
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Stock-based compensation expense
|
$
|
760
|
|
$
|
1,707
|
|
$
|
2,239
|
|
||
Tax benefit realized from stock awards exercised
|
19,070
|
|
3,622
|
|
1,618
|
|
|||||
Fair value of stock-based awards that vested during the year
|
1,075
|
|
1,882
|
|
2,724
|
|
|||||
Amount of cash received from exercise of awards
|
36,392
|
|
11,427
|
|
8,163
|
|
|||||
Total intrinsic value of awards exercised during the year
|
47,180
|
|
9,547
|
|
4,940
|
|
|
2009 Option Plan
|
||||||||||
|
December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Unrecognized compensation expense related to stock-based compensation
|
$
|
—
|
|
$
|
569
|
|
$
|
2,561
|
|
||
Weighted-average life over which expense is expected to be recognized (years)
|
0.00
|
|
0.78
|
|
1.72
|
|
|
2013 Plan Options
|
|||||||||||
|
Options
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
||||||||
|
(Dollars in thousands, except per share data)
|
|||||||||||
Outstanding at January 1, 2017
|
2,164,258
|
|
$
|
20.63
|
|
|||||||
Granted
|
—
|
|
—
|
|
||||||||
Exercised
|
(725,970
|
)
|
20.18
|
|
$
|
20,633
|
|
|||||
Forfeited
|
(13,335
|
)
|
27.23
|
|
||||||||
Expired
|
—
|
|
—
|
|
||||||||
Outstanding at December 31, 2017
|
1,424,953
|
|
20.79
|
|
42,764
|
|
6.21
|
|||||
Exercisable at December 31, 2017
|
1,408,115
|
|
20.71
|
|
42,372
|
|
6.20
|
|||||
Vested at December 31, 2017
|
1,408,115
|
|
20.71
|
|
42,372
|
|
6.20
|
|||||
Vested and expected to vest at December 31, 2017
|
1,424,953
|
|
20.79
|
|
42,764
|
|
6.21
|
|
2013 Plan Options
|
||||||||||
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
Expected volatility
|
—
|
%
|
24.7
|
%
|
31.1
|
%
|
|||||
Expected dividend yield
|
—
|
%
|
1.25
|
%
|
1.25
|
%
|
|||||
Expected term (years)
|
0.0
|
|
6.0
|
|
6.2
|
|
|||||
Risk-free interest rate
|
—
|
%
|
1.37
|
%
|
1.63
|
%
|
|||||
Weighted average grant date fair value
|
$
|
—
|
|
$
|
6.57
|
|
$
|
7.38
|
|
|
2013 Plan Options
|
||||||||||
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Stock-based compensation expense
|
$
|
226
|
|
$
|
1,655
|
|
$
|
2,002
|
|
||
Tax benefit realized from stock awards exercised
|
8,019
|
|
1,380
|
|
158
|
|
|||||
Grant date fair value of stock-based awards that vested during the year
|
3,732
|
|
4,313
|
|
1,181
|
|
|||||
Amount of cash received from exercise of option awards
|
14,652
|
|
5,186
|
|
714
|
|
|||||
Total intrinsic value of awards exercised during the year
|
20,633
|
|
3,888
|
|
465
|
|
|
2013 Plan Options
|
||||||||||
|
December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Unrecognized compensation expense related to stock-based compensation
|
$
|
41
|
|
$
|
333
|
|
$
|
1,633
|
|
||
Weighted-average life over which expense is expected to be recognized (years)
|
0.28
|
|
1.24
|
|
1.53
|
|
|
2016 Plan Options
|
||||||||||||
|
Options
|
Weighted
Average
Exercise
Price
|
Aggregate
Intrinsic
Value
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
|||||||||
|
(Dollars in thousands, except per share data)
|
||||||||||||
Outstanding at January 1, 2017
|
827,500
|
|
$
|
36.11
|
|
||||||||
Granted
|
37,500
|
|
46.89
|
|
|||||||||
Exercised
|
—
|
|
—
|
|
$
|
—
|
|
||||||
Forfeited
|
(102,500
|
)
|
36.11
|
|
|||||||||
Expired
|
—
|
|
—
|
|
|||||||||
Outstanding at December 31, 2017
|
762,500
|
|
36.64
|
|
10,797
|
|
8.64
|
|
|||||
Exercisable at December 31, 2017
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Vested at December 31, 2017
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Vested and expected to vest at December 31, 2017
|
762,500
|
|
36.64
|
|
10,797
|
|
8.64
|
|
2016 Plan Options
|
|||||||
December 31,
|
|||||||
|
2017
|
2016
|
|||||
Expected volatility
|
22.6% - 23.4%
|
|
24.0
|
%
|
|||
Expected dividend yield
|
1.25
|
%
|
1.25
|
%
|
|||
Expected term (years)
|
7.5
|
|
7.5
|
|
|||
Risk-free interest rate
|
2.04% - 2.17%
|
|
1.42
|
%
|
|||
Weighted average grant date fair value
|
$
|
11.73
|
|
$
|
8.62
|
|
2016 Plan Options
|
|||||||
December 31,
|
|||||||
|
2017
|
2016
|
|||||
|
(Dollars in thousands)
|
||||||
Stock-based compensation expense
|
$
|
1,431
|
|
$
|
570
|
|
|
Unrecognized compensation expense related to stock-based compensation
|
4,882
|
|
6,563
|
|
|||
Weighted-average life over which expense is expected to be recognized (years)
|
3.66
|
|
4.61
|
|
2016 Stock Incentive Plan
|
|||||||||||||||||||||
Restricted Stock Awards
|
Restricted Stock Unit Awards
|
Performance Restricted Stock Unit Awards
|
|||||||||||||||||||
Shares
|
Weighted Average Grant Date Fair Value
|
Shares
|
Weighted Average Grant Date Fair Value
|
Shares
|
Weighted Average Grant Date Fair Value
|
||||||||||||||||
(Dollars in thousands, except per share data)
|
|||||||||||||||||||||
Outstanding at January 1, 2017
|
80,808
|
|
$
|
34.47
|
|
—
|
|
$
|
—
|
|
—
|
|
$
|
—
|
|
||||||
Granted
|
83,593
|
|
47.85
|
|
106,615
|
|
49.49
|
|
73,144
|
|
47.85
|
|
|||||||||
Vested
|
(68,268
|
)
|
39.93
|
|
(18,600
|
)
|
45.45
|
|
—
|
|
—
|
|
|||||||||
Canceled or forfeited
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Outstanding at December 31, 2017
|
96,133
|
|
42.23
|
|
88,015
|
|
50.34
|
|
73,144
|
|
47.85
|
|
Restricted Stock Awards
|
Restricted Stock Unit Awards
|
Performance Restricted Stock Unit Awards
|
||||||||||||||||||||||
December 31,
|
December 31,
|
December 31,
|
||||||||||||||||||||||
|
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Stock-based compensation expense
|
$
|
3,672
|
|
$
|
1,393
|
|
$
|
1,225
|
|
$
|
—
|
|
$
|
968
|
|
$
|
—
|
|
||||||
Unrecognized compensation expense related to stock-based compensation
|
$
|
3,113
|
|
$
|
2,785
|
|
$
|
4,051
|
|
$
|
—
|
|
$
|
2,532
|
|
$
|
—
|
|
||||||
Weighted-average life over which expense is expected to be recognized (years)
|
1.31
|
|
2.00
|
|
4.88
|
|
0.00
|
|
2.00
|
|
0.00
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
|
(Dollars in thousands, except share and per share data)
|
||||||||||
Net income available to common stockholders
|
$
|
125,194
|
|
$
|
99,916
|
|
$
|
53,391
|
|
||
Weighted average number of common shares—basic
|
42,887,142
|
|
40,716,588
|
|
41,300,979
|
|
|||||
Effect of dilutive securities:
|
|||||||||||
Employee stock-based compensation awards and warrants
|
3,233,788
|
|
2,508,576
|
|
1,992,628
|
|
|||||
Weighted average number of common shares—diluted
|
46,120,930
|
|
43,225,164
|
|
43,293,607
|
|
|||||
Basic earnings per share
|
$
|
2.92
|
|
$
|
2.45
|
|
$
|
1.29
|
|
||
Diluted earnings per share
|
$
|
2.71
|
|
$
|
2.31
|
|
$
|
1.23
|
|
||
Weighted average number of anti-dilutive equity awards
|
29,114
|
|
330,095
|
|
91,923
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Current income tax expense:
|
|||||||||||
Federal
|
$
|
24,036
|
|
$
|
39,528
|
|
$
|
23,610
|
|
||
State
|
3,800
|
|
6,013
|
|
3,441
|
|
|||||
Total current income tax expense
|
27,836
|
|
45,541
|
|
27,051
|
|
|||||
Deferred income tax expense (benefit):
|
|||||||||||
Federal
|
24,795
|
|
9,161
|
|
(19,157
|
)
|
|||||
State
|
1,534
|
|
1,203
|
|
(2,238
|
)
|
|||||
Total deferred income tax expense (benefit)
|
26,329
|
|
10,364
|
|
(21,395
|
)
|
|||||
Total income tax expense (benefit)
|
$
|
54,165
|
|
$
|
55,905
|
|
$
|
5,656
|
|
|
Years Ended December 31,
|
|||||||||||||||||||
|
2017
|
2016
|
2015
|
|||||||||||||||||
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Tax expense (benefit) at federal income tax rate
|
$
|
62,776
|
|
35.00
|
%
|
$
|
54,537
|
|
35.00
|
%
|
$
|
20,667
|
|
35.00
|
%
|
|||||
Increase (decrease) resulting from:
|
||||||||||||||||||||
Bank-owned life insurance
|
(3,186
|
)
|
(1.78
|
)%
|
(1,817
|
)
|
(1.17
|
)%
|
(1,614
|
)
|
(2.73
|
)%
|
||||||||
Stock compensation and excess tax benefit
|
(20,098
|
)
|
(11.21
|
)%
|
234
|
|
0.15
|
%
|
729
|
|
1.23
|
%
|
||||||||
Dividends received deduction
|
(1,631
|
)
|
(0.91
|
)%
|
(1,919
|
)
|
(1.23
|
)%
|
(2,104
|
)
|
(3.56
|
)%
|
||||||||
GFB NUBIL Revaluation
|
—
|
|
—
|
%
|
—
|
|
—
|
%
|
(4,954
|
)
|
(8.39
|
)%
|
||||||||
NOL Valuation Allowance
|
—
|
|
—
|
%
|
—
|
|
—
|
%
|
(9,061
|
)
|
(15.35
|
)%
|
||||||||
State tax, net of federal benefit
|
3,528
|
|
1.97
|
%
|
4,777
|
|
3.07
|
%
|
1,619
|
|
2.74
|
%
|
||||||||
Federal tax rate change
|
14,301
|
|
7.97
|
%
|
—
|
|
—
|
%
|
—
|
|
—
|
%
|
||||||||
Other
|
(1,525
|
)
|
(0.85
|
)%
|
93
|
|
0.06
|
%
|
374
|
|
0.62
|
%
|
||||||||
Total
|
$
|
54,165
|
|
30.19
|
%
|
$
|
55,905
|
|
35.88
|
%
|
$
|
5,656
|
|
9.56
|
%
|
|
December 31,
|
||||||
|
2017
|
2016
|
|||||
|
(Dollars in thousands)
|
||||||
Deferred tax assets:
|
|||||||
Excess tax basis over carrying value of assets:
|
|||||||
Other real estate owned
|
$
|
1,456
|
|
$
|
12,991
|
|
|
Total
|
1,456
|
|
12,991
|
|
|||
Excess carrying value over tax basis of liabilities:
|
|||||||
Repo Loans
|
—
|
|
324
|
|
|||
Total
|
—
|
|
324
|
|
|||
Net operating loss carry forward:
|
|||||||
Federal
|
5,755
|
|
9,287
|
|
|||
State
|
534
|
|
921
|
|
|||
Total
|
6,289
|
|
10,208
|
|
|||
Amortization
|
11,717
|
|
21,555
|
|
|||
Depreciation
|
—
|
|
660
|
|
|||
Unrealized losses on securities available for sale
|
—
|
|
2,509
|
|
|||
Allowance for loan losses
|
11,087
|
|
12,807
|
|
|||
Non-qualified stock options and restricted stock
|
3,869
|
|
7,695
|
|
|||
Other
|
469
|
|
2,696
|
|
|||
Gross deferred tax assets
|
34,887
|
|
71,445
|
|
|||
Valuation allowance
|
—
|
|
—
|
|
|||
Gross deferred tax assets, net of valuation allowance
|
34,887
|
|
71,445
|
|
|||
Deferred tax liabilities:
|
|||||||
Loans
|
(947
|
)
|
(7,542
|
)
|
|||
Depreciation
|
(239
|
)
|
—
|
|
|||
Restricted securities
|
(1,475
|
)
|
(2,260
|
)
|
|||
Unrealized gains on securities available for sale
|
(3,594
|
)
|
—
|
|
|||
Other
|
(1,589
|
)
|
(252
|
)
|
|||
Gross deferred tax liabilities
|
(7,844
|
)
|
(10,054
|
)
|
|||
Deferred tax assets (liabilities), net
|
$
|
27,043
|
|
$
|
61,391
|
|
|
December 31,
|
||||||
|
2017
|
2016
|
|||||
|
(Dollars in thousands)
|
||||||
Commitments to fund loans
|
$
|
926,405
|
|
$
|
724,380
|
|
|
Unused lines of credit
|
571,587
|
|
410,068
|
|
|||
Commercial and standby letters of credit
|
46,520
|
|
26,200
|
|
|||
Total
|
$
|
1,544,512
|
|
$
|
1,160,648
|
|
|
December 31,
|
||||||
|
2017
|
2016
|
|||||
|
(Dollars in thousands)
|
||||||
Assets:
|
|||||||
Cash and due from banks
|
$
|
10,271
|
|
$
|
18,126
|
|
|
Available for sale securities
|
179,815
|
|
129,970
|
|
|||
Investment in bank subsidiary
|
1,025,677
|
|
885,296
|
|
|||
Other assets
|
13,894
|
|
9,874
|
|
|||
Total assets
|
$
|
1,229,657
|
|
$
|
1,043,266
|
|
|
Liabilities and stockholders’ equity:
|
|||||||
Total liabilities
|
50,783
|
|
61,182
|
|
|||
Stockholders’ equity
|
1,178,874
|
|
982,084
|
|
|||
Total liabilities and stockholders’ equity
|
$
|
1,229,657
|
|
$
|
1,043,266
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Income:
|
|||||||||||
Interest and dividends on investment securities
|
$
|
8,079
|
|
$
|
7,831
|
|
$
|
8,602
|
|
||
Gain (loss) on investment securities
|
2,032
|
|
(586
|
)
|
688
|
|
|||||
Total income
|
10,111
|
|
7,245
|
|
9,290
|
|
|||||
Expense:
|
|||||||||||
Interest on borrowings
|
770
|
|
884
|
|
551
|
|
|||||
Stock-based compensation expense
|
1,126
|
|
577
|
|
829
|
|
|||||
Professional services
|
922
|
|
707
|
|
950
|
|
|||||
Directors fees
|
401
|
|
800
|
|
598
|
|
|||||
Insurance expense
|
768
|
|
1,034
|
|
1,505
|
|
|||||
Other noninterest expense
|
8,372
|
|
7,261
|
|
6,500
|
|
|||||
Total expense
|
12,359
|
|
11,263
|
|
10,933
|
|
|||||
Income (loss) before income taxes and equity in undistributed income of subsidiaries
|
(2,248
|
)
|
(4,018
|
)
|
(1,643
|
)
|
|||||
Income tax expense (benefit)
|
(5,494
|
)
|
(3,671
|
)
|
(2,901
|
)
|
|||||
Income (loss) before equity in undistributed income of subsidiaries
|
3,246
|
|
(347
|
)
|
1,258
|
|
|||||
Equity in income of subsidiary
|
121,948
|
|
100,263
|
|
52,133
|
|
|||||
Net income
|
$
|
125,194
|
|
$
|
99,916
|
|
$
|
53,391
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Net income
|
$
|
125,194
|
|
$
|
99,916
|
|
$
|
53,391
|
|
||
Other comprehensive income (loss):
|
|||||||||||
Unrealized net holding gains (losses) on investment securities available for sale, net of taxes of $(1,644), $(620), and $(227), respectively
|
2,685
|
|
988
|
|
362
|
|
|||||
Reclassification adjustment for (gains) losses on investment securities available for sale included in net income, net of taxes of $1,050, $63, and
$384, respectively
|
(1,696
|
)
|
(100
|
)
|
(612
|
)
|
|||||
Total other comprehensive income (loss)
|
989
|
|
888
|
|
(250
|
)
|
|||||
Total comprehensive income
|
$
|
126,183
|
|
$
|
100,804
|
|
$
|
53,141
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Cash flows from operating activities:
|
|||||||||||
Net income
|
$
|
125,194
|
|
$
|
99,916
|
|
$
|
53,391
|
|
||
Adjustments to reconcile net income to net cash used in operating activities:
|
|||||||||||
Equity in earnings of subsidiaries
|
(121,948
|
)
|
(100,263
|
)
|
(52,133
|
)
|
|||||
Amortization (accretion) of premium (discount) on investment securities
|
(13
|
)
|
—
|
|
—
|
|
|||||
(Gain) loss on investment securities
|
(2,032
|
)
|
586
|
|
(688
|
)
|
|||||
Stock-based compensation and warrant expense
|
1,124
|
|
577
|
|
829
|
|
|||||
Depreciation of premises and equipment
|
—
|
|
—
|
|
1
|
|
|||||
Deferred tax expense
|
3,126
|
|
(735
|
)
|
1,272
|
|
|||||
Net change in operating assets and liabilities:
|
|||||||||||
(Increase)/decrease in due from subsidiaries
|
(472
|
)
|
4,478
|
|
8,476
|
|
|||||
Increase/(decrease) in due to subsidiaries
|
(1,745
|
)
|
1,745
|
|
(1,979
|
)
|
|||||
Net change in other assets
|
1,332
|
|
1,382
|
|
1,052
|
|
|||||
Net change in other liabilities
|
(8,109
|
)
|
(4,365
|
)
|
(2,806
|
)
|
|||||
Net cash provided by (used in) operating activities
|
(3,543
|
)
|
3,321
|
|
7,415
|
|
|||||
Cash flows from investing activities:
|
|||||||||||
Purchases of investment securities available for sale
|
(102,988
|
)
|
(67,934
|
)
|
(169,728
|
)
|
|||||
Sales of investment securities available for sale
|
56,791
|
|
106,347
|
|
110,649
|
|
|||||
Payments and maturities of investment securities
|
—
|
|
—
|
|
2,005
|
|
|||||
Capital contribution
|
—
|
|
—
|
|
(35,000
|
)
|
|||||
Net cash provided by (used in) investing activities
|
(46,197
|
)
|
38,413
|
|
(92,074
|
)
|
|||||
Cash flows from financing activities:
|
|||||||||||
Repurchase common stock
|
—
|
|
(23,738
|
)
|
(34,884
|
)
|
|||||
Exercise of stock options
|
50,670
|
|
17,042
|
|
8,793
|
|
|||||
Excess tax benefit from share-based payments
|
—
|
|
2,110
|
|
2,048
|
|
|||||
Net change in repurchase agreements
|
(8,785
|
)
|
(28,134
|
)
|
87,254
|
|
|||||
Net cash provided by (used in) financing activities
|
41,885
|
|
(32,720
|
)
|
63,211
|
|
|||||
Net Change in Cash
|
(7,855
|
)
|
9,014
|
|
(21,448
|
)
|
|||||
Cash at Beginning of Period
|
18,126
|
|
9,112
|
|
30,560
|
|
|||||
Cash at End of Period
|
$
|
10,271
|
|
$
|
18,126
|
|
$
|
9,112
|
|
|
December 31, 2017
|
||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||
|
(Dollars in thousands)
|
||||||||||||||
Assets:
|
|||||||||||||||
U.S. Government agencies and sponsored enterprises obligations
|
$
|
—
|
|
$
|
42,838
|
|
$
|
—
|
|
$
|
42,838
|
|
|||
U.S. Government agencies and sponsored enterprises mortgage-backed securities
|
—
|
|
595,237
|
|
—
|
|
595,237
|
|
|||||||
State and municipal obligations
|
—
|
|
26,172
|
|
—
|
|
26,172
|
|
|||||||
Asset-backed securities
|
—
|
|
610,546
|
|
—
|
|
610,546
|
|
|||||||
Corporate bonds and other debt securities
|
55,970
|
|
699,933
|
|
—
|
|
755,903
|
|
|||||||
Preferred stocks and other equity securities
|
12,954
|
|
77,153
|
|
—
|
|
90,107
|
|
|||||||
Derivative assets—Interest rate contracts
|
|
|
11,833
|
|
—
|
|
11,833
|
|
|||||||
Total
|
$
|
68,924
|
|
$
|
2,063,712
|
|
$
|
—
|
|
$
|
2,132,636
|
|
|||
Liabilities:
|
|||||||||||||||
Derivative liabilities—Interest rate contracts
|
$
|
—
|
|
$
|
11,833
|
|
$
|
—
|
|
$
|
11,833
|
|
|||
Total
|
$
|
—
|
|
$
|
11,833
|
|
$
|
—
|
|
$
|
11,833
|
|
|||
|
December 31, 2016
|
||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||
|
(Dollars in thousands)
|
||||||||||||||
Assets:
|
|||||||||||||||
U.S. Government agencies and sponsored enterprises obligations
|
$
|
—
|
|
$
|
16,314
|
|
$
|
—
|
|
$
|
16,314
|
|
|||
U.S. Government agencies and sponsored enterprises mortgage-backed securities
|
—
|
|
558,446
|
|
—
|
|
558,446
|
|
|||||||
State and municipal obligations
|
—
|
|
27,679
|
|
—
|
|
27,679
|
|
|||||||
Asset-backed securities
|
—
|
|
577,823
|
|
—
|
|
577,823
|
|
|||||||
Corporate bonds and other debt securities
|
53,517
|
|
505,777
|
|
—
|
|
559,294
|
|
|||||||
Preferred stocks and other equity securities
|
6,908
|
|
129,970
|
|
—
|
|
136,878
|
|
|||||||
Derivative assets—Interest rate contracts
|
—
|
|
15,268
|
|
—
|
|
15,268
|
|
|||||||
Total
|
$
|
60,425
|
|
$
|
1,831,277
|
|
$
|
—
|
|
$
|
1,891,702
|
|
|||
Liabilities:
|
|||||||||||||||
Derivative liabilities—Interest rate contracts
|
$
|
—
|
|
$
|
15,268
|
|
$
|
—
|
|
$
|
15,268
|
|
|||
Total
|
$
|
—
|
|
$
|
15,268
|
|
$
|
—
|
|
$
|
15,268
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
|
Clawback
Liability
|
Clawback
Liability
|
Clawback
Liability
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Balance at beginning of period
|
$
|
—
|
|
$
|
—
|
|
$
|
13,846
|
|
||
Termination of FDIC loss sharing agreements
|
—
|
|
—
|
|
(13,846
|
)
|
|||||
Balance at end of period
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Level 3 Assets:
|
December 31, 2017
|
December 31, 2016
|
Valuation Technique
|
Unobservable Inputs
|
Range (Weighted Average)
|
|||||||||
(Dollars in thousands)
|
||||||||||||||
Impaired loans
|
$
|
6,153
|
|
$
|
8,878
|
|
Third party appraisals and discounted cash flows
|
Collateral discounts and discount rates
|
0% - 100% (7.6%)
|
|
||||
Other real estate owned
|
14,906
|
|
19,228
|
|
Third party appraisals
|
Collateral discounts and estimated cost to sell
|
10
|
%
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
2016
|
2015
|
||||||||
|
(Dollars in thousands)
|
||||||||||
Negative valuation adjustments:
|
|||||||||||
Impaired loans
|
$
|
—
|
|
$
|
700
|
|
$
|
1,071
|
|
||
Foreclosed real estate
|
670
|
|
1,219
|
|
674
|
|
December 31, 2017
|
Carrying
Value
|
Fair
Value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Financial Assets:
|
|||||||||||||||||||
Cash and cash equivalents
|
$
|
115,921
|
|
$
|
115,921
|
|
$
|
115,921
|
|
$
|
—
|
|
$
|
—
|
|
||||
Available for sale securities
|
2,120,803
|
|
2,120,803
|
|
68,924
|
|
2,051,879
|
|
—
|
|
|||||||||
FHLB and other bank stock
|
56,881
|
|
56,881
|
|
—
|
|
56,881
|
|
—
|
|
|||||||||
Loans, net
|
7,930,639
|
|
7,877,094
|
|
—
|
|
—
|
|
7,877,094
|
|
|||||||||
Loans held for sale
|
12,736
|
|
12,736
|
|
—
|
|
12,736
|
|
—
|
|
|||||||||
Bank-owned life insurance
|
201,069
|
|
201,069
|
|
—
|
|
201,069
|
|
—
|
|
|||||||||
Derivative assets—Interest rate contracts
|
11,833
|
|
11,833
|
|
—
|
|
11,833
|
|
—
|
|
|||||||||
Financial Liabilities:
|
|||||||||||||||||||
Deposits
|
$
|
8,673,927
|
|
$
|
8,664,125
|
|
$
|
—
|
|
$
|
8,664,125
|
|
$
|
—
|
|
||||
Advances from the FHLB and other borrowings
|
749,113
|
|
740,941
|
|
—
|
|
740,941
|
|
—
|
|
|||||||||
Derivative liabilities—Interest rate contracts
|
11,833
|
|
11,833
|
|
—
|
|
11,833
|
|
—
|
|
December 31, 2016
|
Carrying
Value
|
Fair
Value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Financial Assets:
|
|||||||||||||||||||
Cash and cash equivalents
|
$
|
83,876
|
|
$
|
83,876
|
|
$
|
83,876
|
|
$
|
—
|
|
$
|
—
|
|
||||
Available for sale securities
|
1,876,434
|
|
1,876,434
|
|
60,425
|
|
1,816,009
|
|
—
|
|
|||||||||
FHLB and other bank stock
|
51,656
|
|
51,656
|
|
—
|
|
51,656
|
|
—
|
|
|||||||||
Loans, net
|
6,596,997
|
|
6,556,914
|
|
—
|
|
—
|
|
6,556,914
|
|
|||||||||
Loans held for sale
|
20,220
|
|
20,220
|
|
—
|
|
20,220
|
|
—
|
|
|||||||||
Bank-owned life insurance
|
198,438
|
|
198,438
|
|
—
|
|
198,438
|
|
—
|
|
|||||||||
Derivative assets—Interest rate contracts
|
15,268
|
|
15,268
|
|
—
|
|
15,268
|
|
—
|
|
|||||||||
Financial Liabilities:
|
|||||||||||||||||||
Deposits
|
$
|
7,305,671
|
|
$
|
7,306,148
|
|
$
|
—
|
|
$
|
7,306,148
|
|
$
|
—
|
|
||||
Advances from the FHLB and other borrowings
|
751,103
|
|
745,855
|
|
—
|
|
745,855
|
|
—
|
|
|||||||||
Derivative liabilities—Interest rate contracts
|
15,268
|
|
15,268
|
|
—
|
|
15,268
|
|
—
|
|
|
Quarters Ended December 31, 2017
|
||||||||||||||
|
Q4
|
Q3
|
Q2
|
Q1
|
|||||||||||
|
(Dollars in thousands, except per share data)
|
||||||||||||||
Selected Income Statement data:
|
|||||||||||||||
Interest income
|
$
|
101,490
|
|
$
|
96,816
|
|
$
|
90,573
|
|
$
|
85,222
|
|
|||
Interest expense
|
23,376
|
|
21,035
|
|
18,686
|
|
15,552
|
|
|||||||
Net interest income
|
78,114
|
|
75,781
|
|
71,887
|
|
69,670
|
|
|||||||
Provision for loan losses
|
2,786
|
|
2,871
|
|
2,115
|
|
1,643
|
|
|||||||
Net interest income after provision for loan losses
|
75,328
|
|
72,910
|
|
69,772
|
|
68,027
|
|
|||||||
Noninterest income
|
7,731
|
|
8,425
|
|
8,873
|
|
9,987
|
|
|||||||
Noninterest expense
|
36,119
|
|
35,239
|
|
35,252
|
|
35,084
|
|
|||||||
Income before income tax expense
|
46,940
|
|
46,096
|
|
43,393
|
|
42,930
|
|
|||||||
Income tax expense
|
27,976
|
|
13,936
|
|
8,312
|
|
3,941
|
|
|||||||
Net income
|
$
|
18,964
|
|
$
|
32,160
|
|
$
|
35,081
|
|
$
|
38,989
|
|
|||
Earnings per share:
|
|||||||||||||||
Basic
|
$
|
0.43
|
|
$
|
0.74
|
|
$
|
0.82
|
|
$
|
0.93
|
|
|||
Diluted
|
$
|
0.41
|
|
$
|
0.70
|
|
$
|
0.76
|
|
$
|
0.86
|
|
|
Quarters Ended December 31, 2016
|
||||||||||||||
|
Q4
|
Q3
|
Q2
|
Q1
|
|||||||||||
|
(Dollars in thousands, except per share data)
|
||||||||||||||
Selected Income Statement data:
|
|||||||||||||||
Interest income
|
$
|
85,580
|
|
$
|
80,800
|
|
$
|
77,208
|
|
$
|
75,728
|
|
|||
Interest expense
|
14,514
|
|
13,522
|
|
12,278
|
|
11,286
|
|
|||||||
Net interest income
|
71,066
|
|
67,278
|
|
64,930
|
|
64,442
|
|
|||||||
Provision for loan losses
|
2,249
|
|
1,990
|
|
1,976
|
|
1,440
|
|
|||||||
Net interest income after provision for loan losses
|
68,817
|
|
65,288
|
|
62,954
|
|
63,002
|
|
|||||||
Noninterest income
|
7,919
|
|
8,142
|
|
8,222
|
|
5,434
|
|
|||||||
Noninterest expense
|
33,646
|
|
33,036
|
|
33,975
|
|
33,300
|
|
|||||||
Income before income tax expense
|
43,090
|
|
40,394
|
|
37,201
|
|
35,136
|
|
|||||||
Income tax expense
|
15,194
|
|
14,330
|
|
13,697
|
|
12,684
|
|
|||||||
Net income
|
$
|
27,896
|
|
$
|
26,064
|
|
$
|
23,504
|
|
$
|
22,452
|
|
|||
Earnings per share:
|
|||||||||||||||
Basic
|
$
|
0.68
|
|
$
|
0.64
|
|
$
|
0.58
|
|
$
|
0.55
|
|
|||
Diluted
|
$
|
0.64
|
|
$
|
0.60
|
|
$
|
0.55
|
|
$
|
0.52
|
|
September 30, 2018
|
December 31, 2017
|
|||||||
Assets:
|
||||||||
Cash and due from banks
|
$
|
76,633
|
|
$
|
60,787
|
|
||
Interest-earning deposits in other banks
|
123,876
|
|
55,134
|
|
||||
Cash and cash equivalents
|
200,509
|
|
115,921
|
|
||||
Investment securities:
|
||||||||
Available for sale debt securities, at fair value
|
2,275,703
|
|
2,030,696
|
|
||||
Preferred stock and other equity securities, at fair value
|
71,015
|
|
90,107
|
|
||||
Federal Home Loan Bank and other bank stock, at cost
|
65,847
|
|
56,881
|
|
||||
Total investment securities
|
2,412,565
|
|
2,177,684
|
|
||||
Loans held for sale
|
980
|
|
12,736
|
|
||||
Loans:
|
||||||||
New loans
|
8,629,402
|
|
7,661,385
|
|
||||
Acquired loans
|
687,406
|
|
316,399
|
|
||||
Allowance for loan losses
|
(53,148
|
)
|
(47,145
|
)
|
||||
Loans, net
|
9,263,660
|
|
7,930,639
|
|
||||
Premises and equipment, net
|
42,645
|
|
36,144
|
|
||||
Other real estate owned
|
10,534
|
|
14,906
|
|
||||
Goodwill
|
139,529
|
|
81,204
|
|
||||
Core deposit intangible
|
7,213
|
|
3,668
|
|
||||
Deferred tax assets, net
|
40,743
|
|
27,043
|
|
||||
Bank-owned life insurance
|
215,421
|
|
201,069
|
|
||||
Other assets
|
99,557
|
|
76,065
|
|
||||
Total assets
|
$
|
12,433,356
|
|
$
|
10,677,079
|
|
||
Liabilities and Stockholders’ Equity
|
||||||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Transaction accounts:
|
||||||||
Noninterest-bearing
|
$
|
1,577,741
|
|
$
|
1,236,685
|
|
||
Interest-bearing
|
4,225,178
|
|
4,830,525
|
|
||||
Total transaction accounts
|
5,802,919
|
|
6,067,210
|
|
||||
Time deposits
|
4,353,196
|
|
2,606,717
|
|
||||
Total deposits
|
10,156,115
|
|
8,673,927
|
|
||||
Borrowings (including FHLB advances of $750,000 and $670,000, respectively)
|
825,558
|
|
749,113
|
|
||||
Other liabilities
|
74,197
|
|
74,867
|
|
||||
Total liabilities
|
11,055,870
|
|
9,497,907
|
|
||||
Commitments and contingencies (Note 13)
|
|
|
||||||
Stockholders’ Equity:
|
||||||||
Class A common stock, par value $0.001 per share; 100 million shares authorized; 49,537,170; 47,065,593 issued and 46,809,305; 44,371,104
outstanding
|
50
|
|
47
|
|
||||
Class B common stock, par value $0.001 per share; 50 million shares authorized; 192,132; 192,132 issued and 0; 0
outstanding
|
—
|
|
—
|
|
||||
Additional paid-in capital
|
1,040,358
|
|
933,960
|
|
||||
Retained earnings
|
439,233
|
|
313,645
|
|
||||
Accumulated other comprehensive income (loss)
|
(24,782
|
)
|
8,893
|
|
||||
Treasury stock, at cost; 2,727,865; 2,694,489 Class A and 192,132; 192,132 Class B common shares
|
(77,373
|
)
|
(77,373
|
)
|
||||
Total stockholders’ equity
|
1,377,486
|
|
1,179,172
|
|
||||
Total liabilities and stockholders’ equity
|
$
|
12,433,356
|
|
$
|
10,677,079
|
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
||||||||||||
Interest income:
|
||||||||||||||||
Interest and fees on loans
|
$
|
104,137
|
|
$
|
76,465
|
|
$
|
290,352
|
|
$
|
214,570
|
|
||||
Interest and dividends on investment securities
|
24,425
|
|
20,215
|
|
68,722
|
|
57,697
|
|
||||||||
Other interest income
|
448
|
|
136
|
|
1,052
|
|
344
|
|
||||||||
Total interest income
|
129,010
|
|
96,816
|
|
360,126
|
|
272,611
|
|
||||||||
Interest expense:
|
||||||||||||||||
Interest on deposits
|
33,300
|
|
17,134
|
|
85,397
|
|
46,277
|
|
||||||||
Interest on borrowings
|
3,072
|
|
3,901
|
|
9,089
|
|
8,996
|
|
||||||||
Total interest expense
|
36,372
|
|
21,035
|
|
94,486
|
|
55,273
|
|
||||||||
Net interest income
|
92,638
|
|
75,781
|
|
265,640
|
|
217,338
|
|
||||||||
Provision for loan losses
|
2,220
|
|
2,871
|
|
5,801
|
|
6,629
|
|
||||||||
Net interest income after provision for loan losses
|
90,418
|
|
72,910
|
|
259,839
|
|
210,709
|
|
||||||||
Noninterest income:
|
||||||||||||||||
Service charges and fees
|
1,266
|
|
941
|
|
3,503
|
|
2,758
|
|
||||||||
Loan and other fees
|
5,043
|
|
2,831
|
|
13,261
|
|
8,374
|
|
||||||||
Bank-owned life insurance income
|
1,439
|
|
1,422
|
|
4,228
|
|
4,250
|
|
||||||||
Income from resolution of acquired assets
|
202
|
|
466
|
|
603
|
|
1,548
|
|
||||||||
Gain (loss) on sales of other real estate owned
|
(70
|
)
|
(143
|
)
|
43
|
|
(121
|
)
|
||||||||
Gain (loss) on investment securities
|
(184
|
)
|
690
|
|
(1,472
|
)
|
1,722
|
|
||||||||
Other noninterest income
|
1,068
|
|
2,218
|
|
3,775
|
|
8,754
|
|
||||||||
Total noninterest income
|
8,764
|
|
8,425
|
|
23,941
|
|
27,285
|
|
||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
23,023
|
|
20,860
|
|
68,700
|
|
62,843
|
|
||||||||
Occupancy and equipment expenses
|
4,012
|
|
3,283
|
|
11,872
|
|
10,016
|
|
||||||||
Loan and other real estate related expenses
|
545
|
|
837
|
|
2,950
|
|
3,252
|
|
||||||||
Professional services
|
3,929
|
|
1,390
|
|
7,335
|
|
4,250
|
|
||||||||
Data processing and network
|
3,911
|
|
3,397
|
|
11,494
|
|
9,452
|
|
||||||||
Regulatory assessments and insurance
|
2,564
|
|
2,330
|
|
7,257
|
|
6,691
|
|
||||||||
Amortization of intangibles
|
371
|
|
256
|
|
1,035
|
|
768
|
|
||||||||
Marketing and promotions
|
1,768
|
|
1,130
|
|
4,930
|
|
3,423
|
|
||||||||
Other operating expenses
|
2,205
|
|
1,756
|
|
6,842
|
|
4,880
|
|
||||||||
Total noninterest expense
|
42,328
|
|
35,239
|
|
122,415
|
|
105,575
|
|
||||||||
Income before income tax expense
|
56,854
|
|
46,096
|
|
161,365
|
|
132,419
|
|
||||||||
Income tax expense
|
13,374
|
|
13,936
|
|
35,052
|
|
26,189
|
|
||||||||
Net income
|
$
|
43,480
|
|
$
|
32,160
|
|
$
|
126,313
|
|
$
|
106,230
|
|
||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
0.93
|
|
$
|
0.74
|
|
$
|
2.73
|
|
$
|
2.49
|
|
||||
Diluted
|
$
|
0.89
|
|
$
|
0.70
|
|
$
|
2.61
|
|
$
|
2.31
|
|
||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
46,693,707
|
|
43,333,947
|
|
46,213,176
|
|
42,580,426
|
|
||||||||
Diluted
|
48,804,871
|
|
46,189,468
|
|
48,472,657
|
|
45,960,595
|
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
||||||||||||
Net income
|
$
|
43,480
|
|
$
|
32,160
|
|
$
|
126,313
|
|
$
|
106,230
|
|
||||
Other comprehensive income (loss):
|
||||||||||||||||
Unrealized gains (losses) on available for sale debt securities:
|
||||||||||||||||
Net unrealized holding gains (losses) on investment securities available for sale, net of taxes of $2,768, $369, $12,017, and $(12,131)
respectively
|
(8,327
|
)
|
(598
|
)
|
(36,146
|
)
|
19,519
|
|
||||||||
Reclassification adjustment for realized (gains) losses on investment securities available for sale included in net income, net of taxes of $(418),
$540, $(144), and $787, respectively
|
1,259
|
|
(869
|
)
|
433
|
|
(1,267
|
)
|
||||||||
Cumulative adjustment from adoption of new accounting standards (1)
|
—
|
|
—
|
|
725
|
|
—
|
|
||||||||
Net change in unrealized gains (losses) on available for sale debt securities
|
(7,068
|
)
|
(1,467
|
)
|
(34,988
|
)
|
18,252
|
|
||||||||
Unrealized gains (losses) on derivative instruments:
|
||||||||||||||||
Net unrealized holding gains (losses) on derivative instruments, net of taxes of $(406), $0, $(437), and $0, respectively
|
1,220
|
|
—
|
|
1,313
|
|
—
|
|
||||||||
Net change in unrealized gains (losses) on derivative instruments
|
1,220
|
|
—
|
|
1,313
|
|
—
|
|
||||||||
Net change in accumulated other comprehensive income (loss)
|
(5,848
|
)
|
(1,467
|
)
|
(33,675
|
)
|
18,252
|
|
||||||||
Total comprehensive income (loss)
|
$
|
37,632
|
|
$
|
30,693
|
|
$
|
92,638
|
|
$
|
124,482
|
|
|
Common Stock
Shares Outstanding
|
Common Stock
Issued
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Treasury
Stock
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total
Stockholders’
Equity
|
|||||||||||||||||||||||||||
|
Class A
|
Class B
|
Class A
|
Class B
|
||||||||||||||||||||||||||||||
Balance as of January 1, 2017
|
40,969,097
|
|
197,950
|
|
$
|
44
|
|
$
|
—
|
|
$
|
875,314
|
|
$
|
188,451
|
|
$
|
(77,373
|
)
|
$
|
(3,995
|
)
|
$
|
982,441
|
|
|||||||||
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
106,230
|
|
—
|
|
—
|
|
106,230
|
|
||||||||||||||||
Exchange of B shares to A shares
|
197,950
|
|
(197,950
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||||||||
Stock-based compensation and warrant expense
|
—
|
|
—
|
|
—
|
|
—
|
|
5,970
|
|
—
|
|
—
|
|
—
|
|
5,970
|
|
||||||||||||||||
Stock issued in connection with equity awards and warrants
|
2,561,255
|
|
—
|
|
2
|
|
—
|
|
43,221
|
|
—
|
|
—
|
|
—
|
|
43,223
|
|
||||||||||||||||
Other
|
—
|
|
—
|
|
—
|
|
—
|
|
(43
|
)
|
—
|
|
—
|
|
—
|
|
(43
|
)
|
||||||||||||||||
Other comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
18,252
|
|
18,252
|
|
||||||||||||||||
Balance as of September 30, 2017
|
43,728,302
|
|
—
|
|
$
|
46
|
|
$
|
—
|
|
$
|
924,462
|
|
$
|
294,681
|
|
$
|
(77,373
|
)
|
$
|
14,257
|
|
$
|
1,156,073
|
|
|||||||||
Balance as of January 1, 2018
|
44,371,104
|
|
—
|
|
$
|
47
|
|
$
|
—
|
|
$
|
933,960
|
|
$
|
313,645
|
|
$
|
(77,373
|
)
|
$
|
8,893
|
|
$
|
1,179,172
|
|
|||||||||
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
126,313
|
|
—
|
|
—
|
|
126,313
|
|
||||||||||||||||
Cumulative adjustment from adoption of new accounting standards (1)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(725
|
)
|
—
|
|
725
|
|
—
|
|
||||||||||||||||
Stock issued in connection with acquisition
|
1,754,362
|
|
—
|
|
2
|
|
—
|
|
94,120
|
|
—
|
|
—
|
|
—
|
|
94,122
|
|
||||||||||||||||
Stock-based compensation and warrant expense
|
—
|
|
—
|
|
—
|
|
—
|
|
6,635
|
|
—
|
|
—
|
|
—
|
|
6,635
|
|
||||||||||||||||
Stock issued in connection with equity awards and warrants
|
724,486
|
|
—
|
|
1
|
|
—
|
|
8,059
|
|
—
|
|
—
|
|
—
|
|
8,060
|
|
||||||||||||||||
Shares surrendered for tax withholding obligations
|
(40,647
|
)
|
—
|
|
—
|
|
—
|
|
(2,066
|
)
|
—
|
|
—
|
|
—
|
|
(2,066
|
)
|
||||||||||||||||
Other
|
—
|
|
—
|
|
—
|
|
—
|
|
(350
|
)
|
—
|
|
—
|
|
—
|
|
(350
|
)
|
||||||||||||||||
Other comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(34,400
|
)
|
(34,400
|
)
|
||||||||||||||||
Balance as of September 30, 2018
|
46,809,305
|
|
—
|
|
$
|
50
|
|
$
|
—
|
|
$
|
1,040,358
|
|
$
|
439,233
|
|
$
|
(77,373
|
)
|
$
|
(24,782
|
)
|
$
|
1,377,486
|
|
|
Nine Months Ended September 30,
|
|||||||
|
2018
|
2017
|
||||||
Cash Flows From Operating Activities:
|
||||||||
Net income
|
$
|
126,313
|
|
$
|
106,230
|
|
||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Provision for loan losses
|
5,801
|
|
6,629
|
|
||||
Amortization of intangible assets
|
1,035
|
|
768
|
|
||||
Depreciation and amortization of premises and equipment
|
2,811
|
|
2,674
|
|
||||
Accretion of discount on loans
|
(2,051
|
)
|
(693
|
)
|
||||
Net amortization (accretion) of premium (discount) on investment securities
|
1,802
|
|
1,547
|
|
||||
Net amortization (accretion) of premium (discount) on time deposits
|
(207
|
)
|
—
|
|
||||
Net amortization (accretion) on FHLB advances and other borrowings
|
—
|
|
(846
|
)
|
||||
Impairment of other real estate owned
|
1,097
|
|
437
|
|
||||
Impairment of fixed assets HFS
|
110
|
|
—
|
|
||||
(Gain) loss on available for sale debt securities
|
355
|
|
(1,722
|
)
|
||||
(Gain) loss on sale of loans
|
(660
|
)
|
(3,835
|
)
|
||||
(Gain) loss on sale of other real estate owned
|
(43
|
)
|
121
|
|
||||
(Gain) loss on sale of premises and equipment
|
13
|
|
(7
|
)
|
||||
Unrealized (gain) loss on preferred stock and other equity securities
|
1,117
|
|
—
|
|
||||
Stock-based compensation
|
6,635
|
|
5,970
|
|
||||
Increase in cash surrender value of BOLI
|
(4,228
|
)
|
(4,250
|
)
|
||||
Net change in operating assets and liabilities:
|
||||||||
Net change in loans held for sale
|
1,641
|
|
8,353
|
|
||||
Net change in other assets
|
(39
|
)
|
(10,164
|
)
|
||||
Net change in other liabilities
|
7,017
|
|
25,094
|
|
||||
Net cash provided by operating activities
|
148,519
|
|
136,306
|
|
||||
Cash Flows From Investing Activities:
|
||||||||
Purchase of equity securities
|
(42
|
)
|
—
|
|
||||
Purchase of available for sale debt securities
|
(635,501
|
)
|
(656,982
|
)
|
||||
Sale of equity securities
|
18,016
|
|
—
|
|
||||
Sales of available for sale debt securities
|
77,705
|
|
113,862
|
|
||||
Paydown and maturities of available for sale debt securities
|
259,925
|
|
336,303
|
|
||||
Purchase of FHLB and other bank stock
|
(95,966
|
)
|
(121,995
|
)
|
||||
Sales of FHLB and other bank stock
|
90,441
|
|
111,813
|
|
||||
Cash received in acquisition
|
16,656
|
|
—
|
|
||||
Net change in loans
|
(919,001
|
)
|
(1,094,190
|
)
|
||||
Purchase of loans
|
(7,382
|
)
|
(2,782
|
)
|
||||
Proceeds from sale of loans
|
26,015
|
|
234,518
|
|
||||
Proceeds from sale of other real estate owned
|
3,686
|
|
2,871
|
|
||||
Purchase of premises and equipment
|
(7,064
|
)
|
(1,790
|
)
|
||||
Proceeds from the sale of premises and equipment
|
1,054
|
|
34
|
|
||||
Proceeds from life insurance
|
365
|
|
3,016
|
|
||||
Net cash used in investing activities
|
(1,171,093
|
)
|
(1,075,322
|
)
|
||||
Cash Flows From Financing Activities:
|
||||||||
Net change in deposits
|
1,100,062
|
|
800,422
|
|
||||
Net change in FHLB advances
|
8,596
|
|
195,750
|
|
||||
Net change in repurchase agreements
|
(5,540
|
)
|
(71,785
|
)
|
||||
Cash paid for withholding taxes on share based payments
|
(3,666
|
)
|
—
|
|
||||
Exercise of stock options and warrants
|
8,060
|
|
43,223
|
|
||||
Other financing costs
|
(350
|
)
|
(43
|
)
|
||||
Net cash provided by financing activities
|
1,107,162
|
|
967,567
|
|
||||
Net Change in Cash and Cash Equivalents
|
84,588
|
|
28,551
|
|
||||
Cash and Cash Equivalents at Beginning of Period
|
115,921
|
|
83,876
|
|
||||
Cash and Cash Equivalents at End of Period
|
$
|
200,509
|
|
$
|
112,427
|
|
||
Supplemental Disclosures of Cash Flow Information:
|
||||||||
Interest paid
|
$
|
92,427
|
|
$
|
55,177
|
|
||
Income taxes paid
|
24,159
|
|
6,122
|
|
||||
Supplemental disclosure of noncash investing and financing activities:
|
||||||||
Transfer/adjustments of loans to other real estate owned
|
$
|
266
|
|
$
|
1,800
|
|
||
Transfers from loans held for sale to portfolio loans
|
10,683
|
|
—
|
|
||||
(Purchase) sale of investment securities settled in subsequent period, net
|
(63,756
|
)
|
6,214
|
|
||||
See Note 2 regarding non-cash transactions included in the acquisition
|
•
|
Requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of
the investee) to be measured at fair value with changes in fair value recognized in net income.
|
•
|
Simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative
assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value.
|
•
|
Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the
fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet.
|
•
|
Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure
purposes.
|
•
|
Requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a
liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments.
|
•
|
Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that
is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements.
|
•
|
Clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale
securities in combination with the entity’s other deferred tax assets.
|
|
Acquisition Date Fair Value
|
Measurement Period Adjustments
|
Adjusted Acquisition Date Fair Value
|
||||||||
(Dollars in thousands)
|
|||||||||||
Consideration transferred:
|
|||||||||||
Common stock issued
|
$
|
94,122
|
|
$
|
—
|
|
$
|
94,122
|
|
||
Liability incurred related to settlement of outstanding stock options
|
5,198
|
|
—
|
|
5,198
|
|
|||||
Total consideration transferred
|
99,320
|
|
—
|
|
99,320
|
|
|||||
Fair value of assets acquired:
|
|||||||||||
Cash and cash equivalents
|
16,699
|
|
(43
|
)
|
16,656
|
|
|||||
Investment securities
|
38,772
|
|
—
|
|
38,772
|
|
|||||
Loans
|
425,894
|
|
—
|
|
425,894
|
|
|||||
Other real estate owned
|
113
|
|
(2
|
)
|
111
|
|
|||||
Core deposit intangible
|
4,580
|
|
—
|
|
4,580
|
|
|||||
Fixed assets
|
3,425
|
|
—
|
|
3,425
|
|
|||||
Deferred tax asset, net
|
5,043
|
|
(239
|
)
|
4,804
|
|
|||||
Bank-owned life insurance
|
10,489
|
|
—
|
|
10,489
|
|
|||||
Other assets
|
2,678
|
|
(574
|
)
|
2,104
|
|
|||||
Total identifiable assets acquired
|
507,693
|
|
(858
|
)
|
506,835
|
|
|||||
Fair value of liabilities assumed:
|
|||||||||||
Deposits
|
382,333
|
|
—
|
|
382,333
|
|
|||||
FHLB advances and other borrowings
|
73,389
|
|
—
|
|
73,389
|
|
|||||
Other liabilities
|
11,231
|
|
(1,113
|
)
|
10,118
|
|
|||||
Total liabilities assumed
|
466,953
|
|
(1,113
|
)
|
465,840
|
|
|||||
Fair value of net assets acquired
|
40,740
|
|
255
|
|
40,995
|
|
|||||
Goodwill resulting from acquisition
|
$
|
58,580
|
|
$
|
(255
|
)
|
$
|
58,325
|
|
|
Amortized
Cost
|
Unrealized
|
Fair
Value
|
|||||||||||||
September 30, 2018
|
Gains
|
Losses
|
||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Available for sale debt securities:
|
||||||||||||||||
U.S. Government agencies and sponsored enterprises obligations
|
$
|
86,941
|
|
$
|
—
|
|
$
|
2,709
|
|
$
|
84,232
|
|
||||
U.S. Government agencies and sponsored enterprises mortgage-backed securities
|
627,668
|
|
9
|
|
23,519
|
|
604,158
|
|
||||||||
State and municipal obligations
|
24,485
|
|
66
|
|
1,669
|
|
22,882
|
|
||||||||
Asset-backed securities
|
780,250
|
|
330
|
|
2,258
|
|
778,322
|
|
||||||||
Corporate bonds and other debt securities
|
791,130
|
|
7,609
|
|
12,630
|
|
786,109
|
|
||||||||
Total available for sale debt securities
|
$
|
2,310,474
|
|
$
|
8,014
|
|
$
|
42,785
|
|
$
|
2,275,703
|
|
||||
|
Amortized
Cost
|
Unrealized
|
Fair
Value
|
|||||||||||||
December 31, 2017
|
Gains
|
Losses
|
||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Available for sale debt securities: (1)
|
||||||||||||||||
U.S. Government agencies and sponsored enterprises obligations
|
$
|
43,471
|
|
$
|
38
|
|
$
|
671
|
|
$
|
42,838
|
|
||||
U.S. Government agencies and sponsored enterprises mortgage-backed securities
|
600,310
|
|
1,716
|
|
6,789
|
|
595,237
|
|
||||||||
State and municipal obligations
|
26,766
|
|
125
|
|
719
|
|
26,172
|
|
||||||||
Asset-backed securities
|
608,340
|
|
2,306
|
|
100
|
|
610,546
|
|
||||||||
Corporate bonds and other debt securities
|
738,994
|
|
18,222
|
|
1,313
|
|
755,903
|
|
||||||||
Total available for sale debt securities
|
$
|
2,017,881
|
|
$
|
22,407
|
|
$
|
9,592
|
|
$
|
2,030,696
|
|
September 30, 2018
|
Amortized
Cost
|
Fair
Value
|
||||||
|
(Dollars in thousands)
|
|||||||
Available for sale debt securities:
|
||||||||
Due in one year or less
|
$
|
57,430
|
|
$
|
57,475
|
|
||
Due after one year through five years
|
290,655
|
|
287,076
|
|
||||
Due after five years through ten years
|
138,696
|
|
135,574
|
|
||||
Due after ten years
|
328,834
|
|
328,866
|
|
||||
U.S. Government agencies and sponsored enterprises obligations, mortgage-backed securities and asset-backed securities
|
1,494,859
|
|
1,466,712
|
|
||||
Total available for sale debt securities
|
$
|
2,310,474
|
|
$
|
2,275,703
|
|
|
Less than 12 Months
|
12 Months or More
|
Total
|
|||||||||||||||||||||
September 30, 2018
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Available for sale debt securities:
|
||||||||||||||||||||||||
U.S. Government agencies and sponsored enterprises obligations
|
$
|
51,529
|
|
$
|
906
|
|
$
|
32,703
|
|
$
|
1,803
|
|
$
|
84,232
|
|
$
|
2,709
|
|
||||||
U.S. Government agencies and sponsored enterprises mortgage-backed securities
|
279,436
|
|
8,128
|
|
300,994
|
|
15,391
|
|
580,430
|
|
23,519
|
|
||||||||||||
State and municipal obligations
|
—
|
|
—
|
|
20,772
|
|
1,669
|
|
20,772
|
|
1,669
|
|
||||||||||||
Asset-backed securities
|
348,117
|
|
2,196
|
|
7,002
|
|
62
|
|
355,119
|
|
2,258
|
|
||||||||||||
Corporate bonds and other debt securities
|
391,610
|
|
8,486
|
|
91,574
|
|
4,144
|
|
483,184
|
|
12,630
|
|
||||||||||||
Total available for sale debt securities
|
$
|
1,070,692
|
|
$
|
19,716
|
|
$
|
453,045
|
|
$
|
23,069
|
|
$
|
1,523,737
|
|
$
|
42,785
|
|
|
Less than 12 Months
|
12 Months or More
|
Total
|
|||||||||||||||||||||
December 31, 2017
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Available for sale debt securities: (1)
|
||||||||||||||||||||||||
U.S. Government agencies and sponsored enterprises obligations
|
$
|
31,518
|
|
$
|
268
|
|
$
|
7,157
|
|
$
|
403
|
|
$
|
38,675
|
|
$
|
671
|
|
||||||
U.S. Government agencies and sponsored enterprises mortgage-backed securities
|
207,735
|
|
1,836
|
|
175,810
|
|
4,953
|
|
383,545
|
|
6,789
|
|
||||||||||||
State and municipal obligations
|
192
|
|
2
|
|
23,813
|
|
717
|
|
24,005
|
|
719
|
|
||||||||||||
Asset-backed securities
|
36,542
|
|
100
|
|
—
|
|
—
|
|
36,542
|
|
100
|
|
||||||||||||
Corporate bonds and other debt securities
|
186,052
|
|
1,240
|
|
10,842
|
|
73
|
|
196,894
|
|
1,313
|
|
||||||||||||
Total available for sale debt securities
|
$
|
462,039
|
|
$
|
3,446
|
|
$
|
217,622
|
|
$
|
6,146
|
|
$
|
679,661
|
|
$
|
9,592
|
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Gross realized gains
|
$
|
2
|
|
$
|
1,251
|
|
$
|
147
|
|
$
|
1,945
|
|
||||
Gross realized losses
|
(1,248
|
)
|
(1,533
|
)
|
(1,254
|
)
|
(2,739
|
)
|
||||||||
Net realized gains (losses)
|
$
|
(1,246
|
)
|
$
|
(282
|
)
|
$
|
(1,107
|
)
|
$
|
(794
|
)
|
September 30, 2018
|
ASC
310-30
Loans
|
Non-ASC
310-30
Loans
|
New
Loans (1)
|
Total
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Real estate loans:
|
||||||||||||||||
Commercial real estate
|
$
|
133,778
|
|
$
|
104,364
|
|
$
|
2,528,748
|
|
$
|
2,766,890
|
|
||||
Owner-occupied commercial real estate
|
—
|
|
81,408
|
|
1,134,793
|
|
1,216,201
|
|
||||||||
1-4 single family residential
|
32,240
|
|
148,659
|
|
2,245,139
|
|
2,426,038
|
|
||||||||
Construction, land and development
|
28,590
|
|
36,881
|
|
754,972
|
|
820,443
|
|
||||||||
Home equity loans and lines of credit
|
—
|
|
40,131
|
|
59,729
|
|
99,860
|
|
||||||||
Total real estate loans
|
194,608
|
|
411,443
|
|
6,723,381
|
|
7,329,432
|
|
||||||||
Other loans:
|
||||||||||||||||
Commercial and industrial
|
19,503
|
|
46,643
|
|
1,902,045
|
|
1,968,191
|
|
||||||||
Consumer
|
1,259
|
|
13,950
|
|
3,976
|
|
19,185
|
|
||||||||
Total other loans
|
20,762
|
|
60,593
|
|
1,906,021
|
|
1,987,376
|
|
||||||||
Total loans held in portfolio
|
$
|
215,370
|
|
$
|
472,036
|
|
$
|
8,629,402
|
|
$
|
9,316,808
|
|
||||
Allowance for loan losses
|
(53,148
|
)
|
||||||||||||||
Loans held in portfolio, net
|
$
|
9,263,660
|
|
December 31, 2017
|
ASC
310-30
Loans
|
Non-ASC
310-30
Loans
|
New
Loans (1)
|
Total
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Real estate loans:
|
||||||||||||||||
Commercial real estate
|
$
|
104,335
|
|
$
|
37,736
|
|
$
|
2,103,788
|
|
$
|
2,245,859
|
|
||||
Owner-occupied commercial real estate
|
—
|
|
16,100
|
|
987,781
|
|
1,003,881
|
|
||||||||
1-4 single family residential
|
27,513
|
|
57,695
|
|
2,185,362
|
|
2,270,570
|
|
||||||||
Construction, land and development
|
13,167
|
|
5,889
|
|
684,462
|
|
703,518
|
|
||||||||
Home equity loans and lines of credit
|
—
|
|
34,589
|
|
59,636
|
|
94,225
|
|
||||||||
Total real estate loans
|
145,015
|
|
152,009
|
|
6,021,029
|
|
6,318,053
|
|
||||||||
Other loans:
|
||||||||||||||||
Commercial and industrial
|
12,631
|
|
5,062
|
|
1,634,372
|
|
1,652,065
|
|
||||||||
Consumer
|
1,423
|
|
259
|
|
5,984
|
|
7,666
|
|
||||||||
Total other loans
|
14,054
|
|
5,321
|
|
1,640,356
|
|
1,659,731
|
|
||||||||
Total loans held in portfolio
|
$
|
159,069
|
|
$
|
157,330
|
|
$
|
7,661,385
|
|
$
|
7,977,784
|
|
||||
Allowance for loan losses
|
(47,145
|
)
|
||||||||||||||
Loans held in portfolio, net
|
$
|
7,930,639
|
|
(1)
|
Balance includes $(9.2) million and $(6.6) million of net deferred fees, costs, and premium and discount as of September 30, 2018 and December 31, 2017, respectively.
|
|
Nine Months Ended September 30,
|
|||||||
|
2018
|
2017
|
||||||
|
(Dollars in thousands)
|
|||||||
Balance at January 1,
|
$
|
41,162
|
|
$
|
60,990
|
|
||
Additions to accretable discount from FLCB acquisition
|
14,393
|
|
—
|
|
||||
Accretion
|
(10,857
|
)
|
(13,965
|
)
|
||||
Reclassifications from (to) non-accretable difference
|
3,417
|
|
(2,747
|
)
|
||||
Balance at September 30,
|
$
|
48,115
|
|
$
|
44,278
|
|
Commercial
Real Estate
|
Owner-
Occupied
Commercial
Real Estate
|
1-4 Single
Family
Residential
|
Construction,
Land and
Development
|
Home
Equity
Loans and
Lines of
Credit
|
Commercial
and
Industrial
|
Consumer
|
Total
|
|||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Balance at July 1, 2018
|
$
|
15,381
|
|
$
|
3,946
|
|
$
|
7,310
|
|
$
|
4,076
|
|
$
|
704
|
|
$
|
18,934
|
|
$
|
219
|
|
$
|
50,570
|
|
||||||||
Provision (credit) for ASC 310-30 loans
|
(26
|
)
|
(3
|
)
|
14
|
|
(115
|
)
|
—
|
|
(66
|
)
|
(16
|
)
|
(212
|
)
|
||||||||||||||||
Provision (credit) for non-ASC 310-30 loans
|
(8
|
)
|
(3
|
)
|
(35
|
)
|
71
|
|
2
|
|
129
|
|
—
|
|
156
|
|
||||||||||||||||
Provision (credit) for New loans
|
560
|
|
(141
|
)
|
(333
|
)
|
1,228
|
|
(24
|
)
|
994
|
|
(8
|
)
|
2,276
|
|
||||||||||||||||
Provision (credit) for Unallocated
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||||||||
Total provision
|
526
|
|
(147
|
)
|
(354
|
)
|
1,184
|
|
(22
|
)
|
1,057
|
|
(24
|
)
|
2,220
|
|
||||||||||||||||
Charge-offs for ASC 310-30 loans
|
(1
|
)
|
—
|
|
(22
|
)
|
—
|
|
—
|
|
—
|
|
(4
|
)
|
(27
|
)
|
||||||||||||||||
Charge-offs for non-ASC 310-30 loans
|
(118
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(118
|
)
|
||||||||||||||||
Charge-offs for New loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||||||||
Total charge-offs
|
(119
|
)
|
—
|
|
(22
|
)
|
—
|
|
—
|
|
—
|
|
(4
|
)
|
(145
|
)
|
||||||||||||||||
Recoveries for ASC 310-30 loans
|
366
|
|
3
|
|
1
|
|
93
|
|
—
|
|
7
|
|
—
|
|
470
|
|
||||||||||||||||
Recoveries for non-ASC 310-30 loans
|
—
|
|
—
|
|
23
|
|
—
|
|
—
|
|
—
|
|
—
|
|
23
|
|
||||||||||||||||
Recoveries for New loans
|
—
|
|
9
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
9
|
|
||||||||||||||||
Total recoveries
|
366
|
|
12
|
|
24
|
|
93
|
|
—
|
|
7
|
|
—
|
|
502
|
|
||||||||||||||||
Ending ALL balance
|
||||||||||||||||||||||||||||||||
ASC 310-30 loans
|
1,556
|
|
—
|
|
8
|
|
103
|
|
—
|
|
80
|
|
119
|
|
1,866
|
|
||||||||||||||||
Non-ASC 310-30 loans
|
188
|
|
51
|
|
144
|
|
130
|
|
204
|
|
447
|
|
3
|
|
1,167
|
|
||||||||||||||||
New loans
|
14,410
|
|
3,760
|
|
6,806
|
|
5,121
|
|
478
|
|
19,471
|
|
69
|
|
50,115
|
|
||||||||||||||||
Unallocated
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||||||||
Balance at September 30, 2018
|
$
|
16,154
|
|
$
|
3,811
|
|
$
|
6,958
|
|
$
|
5,354
|
|
$
|
682
|
|
$
|
19,998
|
|
$
|
191
|
|
$
|
53,148
|
|
||||||||
|
Commercial
Real Estate
|
Owner-
Occupied
Commercial
Real Estate
|
1-4 Single
Family
Residential
|
Construction,
Land and
Development
|
Home
Equity
Loans and
Lines of
Credit
|
Commercial
and
Industrial
|
Consumer
|
Total
|
||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Balance at July 1, 2017
|
$
|
12,155
|
|
$
|
3,286
|
|
$
|
8,749
|
|
$
|
4,713
|
|
$
|
884
|
|
$
|
11,296
|
|
$
|
251
|
|
$
|
41,334
|
|
||||||||
Provision (credit) for ASC 310-30 loans
|
(41
|
)
|
—
|
|
—
|
|
(38
|
)
|
—
|
|
(38
|
)
|
(8
|
)
|
(125
|
)
|
||||||||||||||||
Provision (credit) for non-ASC 310-30 loans
|
30
|
|
(1
|
)
|
(49
|
)
|
(2
|
)
|
(227
|
)
|
(56
|
)
|
1
|
|
(304
|
)
|
||||||||||||||||
Provision (credit) for New loans
|
943
|
|
342
|
|
(335
|
)
|
(113
|
)
|
42
|
|
933
|
|
(12
|
)
|
1,800
|
|
||||||||||||||||
Provision (credit) for Unallocated
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,500
|
|
||||||||||||||||
Total provision
|
932
|
|
341
|
|
(384
|
)
|
(153
|
)
|
(185
|
)
|
839
|
|
(19
|
)
|
2,871
|
|
||||||||||||||||
Charge-offs for ASC 310-30 loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||||||||
Charge-offs for non-ASC 310-30 loans
|
(30
|
)
|
—
|
|
(9
|
)
|
—
|
|
—
|
|
(3
|
)
|
—
|
|
(42
|
)
|
||||||||||||||||
Charge-offs for New loans
|
—
|
|
—
|
|
—
|
|
—
|
|
(3
|
)
|
—
|
|
—
|
|
(3
|
)
|
||||||||||||||||
Total charge-offs
|
(30
|
)
|
—
|
|
(9
|
)
|
—
|
|
(3
|
)
|
(3
|
)
|
—
|
|
(45
|
)
|
||||||||||||||||
Recoveries for ASC 310-30 loans
|
27
|
|
—
|
|
—
|
|
—
|
|
—
|
|
70
|
|
—
|
|
97
|
|
||||||||||||||||
Recoveries for non-ASC 310-30 loans
|
—
|
|
—
|
|
30
|
|
—
|
|
—
|
|
4
|
|
—
|
|
34
|
|
||||||||||||||||
Recoveries for New loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||||||||
Total recoveries
|
27
|
|
—
|
|
30
|
|
—
|
|
—
|
|
74
|
|
—
|
|
131
|
|
||||||||||||||||
Ending ALL balance
|
||||||||||||||||||||||||||||||||
ASC 310-30 loans
|
1,664
|
|
—
|
|
25
|
|
147
|
|
—
|
|
200
|
|
152
|
|
2,188
|
|
||||||||||||||||
Non-ASC 310-30 loans
|
331
|
|
64
|
|
214
|
|
36
|
|
224
|
|
311
|
|
7
|
|
1,187
|
|
||||||||||||||||
New loans
|
11,089
|
|
3,563
|
|
8,147
|
|
4,377
|
|
472
|
|
11,695
|
|
73
|
|
39,416
|
|
||||||||||||||||
Unallocated
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,500
|
|
||||||||||||||||
Balance at September 30, 2017
|
$
|
13,084
|
|
$
|
3,627
|
|
$
|
8,386
|
|
$
|
4,560
|
|
$
|
696
|
|
$
|
12,206
|
|
$
|
232
|
|
$
|
44,291
|
|
|
Commercial
Real Estate
|
Owner-
Occupied
Commercial
Real Estate
|
1-4 Single
Family
Residential
|
Construction,
Land and
Development
|
Home
Equity
Loans and
Lines of
Credit
|
Commercial
and
Industrial
|
Consumer
|
Total
|
||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Balance at January 1, 2018
|
$
|
13,870
|
|
$
|
3,365
|
|
$
|
7,978
|
|
$
|
4,345
|
|
$
|
674
|
|
$
|
15,141
|
|
$
|
272
|
|
$
|
47,145
|
|
||||||||
Provision (credit) for ASC 310-30 loans
|
(102
|
)
|
(3
|
)
|
(15
|
)
|
(149
|
)
|
—
|
|
(53
|
)
|
(15
|
)
|
(337
|
)
|
||||||||||||||||
Provision (credit) for non-ASC 310-30 loans
|
(32
|
)
|
(4
|
)
|
(62
|
)
|
94
|
|
5
|
|
170
|
|
(3
|
)
|
168
|
|
||||||||||||||||
Provision (credit) for New loans
|
2,315
|
|
441
|
|
(963
|
)
|
957
|
|
3
|
|
4,769
|
|
(52
|
)
|
7,470
|
|
||||||||||||||||
Provision (credit) for Unallocated
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,500
|
)
|
||||||||||||||||
Total provision
|
2,181
|
|
434
|
|
(1,040
|
)
|
902
|
|
8
|
|
4,886
|
|
(70
|
)
|
5,801
|
|
||||||||||||||||
Charge-offs for ASC 310-30 loans
|
(156
|
)
|
—
|
|
(22
|
)
|
—
|
|
—
|
|
(17
|
)
|
(11
|
)
|
(206
|
)
|
||||||||||||||||
Charge-offs for non-ASC 310-30 loans
|
(118
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(36
|
)
|
—
|
|
(154
|
)
|
||||||||||||||||
Charge-offs for New loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||||||||
Total charge-offs
|
(274
|
)
|
—
|
|
(22
|
)
|
—
|
|
—
|
|
(53
|
)
|
(11
|
)
|
(360
|
)
|
||||||||||||||||
Recoveries for ASC 310-30 loans
|
366
|
|
3
|
|
19
|
|
106
|
|
—
|
|
24
|
|
—
|
|
518
|
|
||||||||||||||||
Recoveries for non-ASC 310-30 loans
|
—
|
|
—
|
|
23
|
|
—
|
|
—
|
|
—
|
|
—
|
|
23
|
|
||||||||||||||||
Recoveries for New loans
|
11
|
|
9
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
20
|
|
||||||||||||||||
Total recoveries
|
377
|
|
12
|
|
42
|
|
106
|
|
—
|
|
24
|
|
—
|
|
561
|
|
||||||||||||||||
Ending ALL balance
|
||||||||||||||||||||||||||||||||
ASC 310-30 loans
|
1,556
|
|
—
|
|
8
|
|
103
|
|
—
|
|
80
|
|
119
|
|
1,866
|
|
||||||||||||||||
Non-ASC 310-30 loans
|
188
|
|
51
|
|
144
|
|
130
|
|
204
|
|
447
|
|
3
|
|
1,167
|
|
||||||||||||||||
New loans
|
14,410
|
|
3,760
|
|
6,806
|
|
5,121
|
|
478
|
|
19,471
|
|
69
|
|
50,115
|
|
||||||||||||||||
Unallocated
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||||||||
Balance at September 30, 2018
|
$
|
16,154
|
|
$
|
3,811
|
|
$
|
6,958
|
|
$
|
5,354
|
|
$
|
682
|
|
$
|
19,998
|
|
$
|
191
|
|
$
|
53,148
|
|
|
Commercial
Real Estate
|
Owner-
Occupied
Commercial
Real Estate
|
1-4 Single
Family
Residential
|
Construction,
Land and
Development
|
Home
Equity
Loans and
Lines of
Credit
|
Commercial
and
Industrial
|
Consumer
|
Total
|
||||||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Balance at January 1, 2017
|
$
|
10,123
|
|
$
|
2,597
|
|
$
|
7,379
|
|
$
|
4,677
|
|
$
|
648
|
|
$
|
12,245
|
|
$
|
228
|
|
37,897
|
|
|||||||||
Provision (credit) for ASC 310-30 loans
|
(623
|
)
|
—
|
|
31
|
|
(49
|
)
|
—
|
|
(118
|
)
|
(92
|
)
|
(851
|
)
|
||||||||||||||||
Provision (credit) for non-ASC 310-30 loans
|
(15
|
)
|
3
|
|
(48
|
)
|
(11
|
)
|
(12
|
)
|
(66
|
)
|
(28
|
)
|
(177
|
)
|
||||||||||||||||
Provision (credit) for New loans
|
3,728
|
|
1,027
|
|
1,098
|
|
(14
|
)
|
70
|
|
253
|
|
(5
|
)
|
6,157
|
|
||||||||||||||||
Provision (credit) for Unallocated
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,500
|
|
||||||||||||||||
Total provision
|
3,090
|
|
1,030
|
|
1,081
|
|
(74
|
)
|
58
|
|
69
|
|
(125
|
)
|
6,629
|
|
||||||||||||||||
Charge-offs for ASC 310-30 loans
|
(9
|
)
|
—
|
|
(35
|
)
|
(43
|
)
|
—
|
|
(29
|
)
|
—
|
|
(116
|
)
|
||||||||||||||||
Charge-offs for non-ASC 310-30 loans
|
(30
|
)
|
—
|
|
(69
|
)
|
—
|
|
(7
|
)
|
(3
|
)
|
—
|
|
(109
|
)
|
||||||||||||||||
Charge-offs for New loans
|
(131
|
)
|
—
|
|
—
|
|
—
|
|
(3
|
)
|
(150
|
)
|
—
|
|
(284
|
)
|
||||||||||||||||
Total charge-offs
|
(170
|
)
|
—
|
|
(104
|
)
|
(43
|
)
|
(10
|
)
|
(182
|
)
|
—
|
|
(509
|
)
|
||||||||||||||||
Recoveries for ASC 310-30 loans
|
41
|
|
—
|
|
—
|
|
—
|
|
—
|
|
70
|
|
100
|
|
211
|
|
||||||||||||||||
Recoveries for non-ASC 310-30 loans
|
—
|
|
—
|
|
30
|
|
—
|
|
—
|
|
4
|
|
29
|
|
63
|
|
||||||||||||||||
Recoveries for New loans
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||||||||
Total recoveries
|
41
|
|
—
|
|
30
|
|
—
|
|
—
|
|
74
|
|
129
|
|
274
|
|
||||||||||||||||
Ending ALL balance
|
||||||||||||||||||||||||||||||||
ASC 310-30 loans
|
1,664
|
|
—
|
|
25
|
|
147
|
|
—
|
|
200
|
|
152
|
|
2,188
|
|
||||||||||||||||
Non-ASC 310-30 loans
|
331
|
|
64
|
|
214
|
|
36
|
|
224
|
|
311
|
|
7
|
|
1,187
|
|
||||||||||||||||
New loans
|
11,089
|
|
3,563
|
|
8,147
|
|
4,377
|
|
472
|
|
11,695
|
|
73
|
|
39,416
|
|
||||||||||||||||
Unallocated
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,500
|
|
||||||||||||||||
Balance at September 30, 2017
|
$
|
13,084
|
|
$
|
3,627
|
|
$
|
8,386
|
|
$
|
4,560
|
|
$
|
696
|
|
$
|
12,206
|
|
$
|
232
|
|
$
|
44,291
|
|
|
Accruing
|
|
|
|||||||||||||||||
September 30, 2018
|
30 to 59
Days Past
Due
|
60 to 89
Days Past
Due
|
90 Days
or More
Past Due
|
Non-
Accrual
|
Total
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
New loans:
|
||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Commercial real estate
|
$
|
—
|
|
$
|
7
|
|
$
|
—
|
|
$
|
460
|
|
$
|
467
|
|
|||||
Owner-occupied commercial real estate
|
—
|
|
827
|
|
—
|
|
2,440
|
|
3,267
|
|
||||||||||
1-4 single family residential
|
1,993
|
|
334
|
|
—
|
|
4,157
|
|
6,484
|
|
||||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Home equity loans and lines of credit
|
—
|
|
—
|
|
—
|
|
126
|
|
126
|
|
||||||||||
Total real estate loans
|
1,993
|
|
1,168
|
|
—
|
|
7,183
|
|
10,344
|
|
||||||||||
Other loans:
|
||||||||||||||||||||
Commercial and industrial
|
212
|
|
152
|
|
—
|
|
155
|
|
519
|
|
||||||||||
Consumer
|
24
|
|
—
|
|
—
|
|
—
|
|
24
|
|
||||||||||
Total other loans
|
236
|
|
152
|
|
—
|
|
155
|
|
543
|
|
||||||||||
Total new loans
|
$
|
2,229
|
|
$
|
1,320
|
|
$
|
—
|
|
$
|
7,338
|
|
$
|
10,887
|
|
|||||
Acquired loans:
|
||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Commercial real estate
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3,615
|
|
$
|
3,615
|
|
|||||
Owner-occupied commercial real estate
|
—
|
|
—
|
|
—
|
|
486
|
|
486
|
|
||||||||||
1-4 single family residential
|
—
|
|
96
|
|
—
|
|
1,677
|
|
1,773
|
|
||||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Home equity loans and lines of credit
|
716
|
|
—
|
|
—
|
|
2,543
|
|
3,259
|
|
||||||||||
Total real estate loans
|
716
|
|
96
|
|
—
|
|
8,321
|
|
9,133
|
|
||||||||||
Other loans:
|
||||||||||||||||||||
Commercial and industrial
|
64
|
|
24
|
|
—
|
|
2,816
|
|
2,904
|
|
||||||||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Total other loans
|
64
|
|
24
|
|
—
|
|
2,816
|
|
2,904
|
|
||||||||||
Total acquired loans
|
$
|
780
|
|
$
|
120
|
|
$
|
—
|
|
$
|
11,137
|
|
$
|
12,037
|
|
|
Accruing
|
|
|
|||||||||||||||||
December 31, 2017
|
30 to 59
Days Past
Due
|
60 to 89
Days Past
Due
|
90 Days
or More
Past Due
|
Non-
Accrual
|
Total
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
New loans:
|
||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Commercial real estate
|
$
|
324
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
324
|
|
|||||
Owner-occupied commercial real estate
|
843
|
|
150
|
|
—
|
|
—
|
|
993
|
|
||||||||||
1-4 single family residential
|
1,179
|
|
1,310
|
|
—
|
|
3,167
|
|
5,656
|
|
||||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Home equity loans and lines of credit
|
—
|
|
—
|
|
—
|
|
126
|
|
126
|
|
||||||||||
Total real estate loans
|
2,346
|
|
1,460
|
|
—
|
|
3,293
|
|
7,099
|
|
||||||||||
Other loans:
|
||||||||||||||||||||
Commercial and industrial
|
4,980
|
|
2,167
|
|
—
|
|
—
|
|
7,147
|
|
||||||||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Total other loans
|
4,980
|
|
2,167
|
|
—
|
|
—
|
|
7,147
|
|
||||||||||
Total new loans
|
$
|
7,326
|
|
$
|
3,627
|
|
$
|
—
|
|
$
|
3,293
|
|
$
|
14,246
|
|
|||||
Acquired Loans:
|
||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Commercial real estate
|
$
|
360
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3,893
|
|
$
|
4,253
|
|
|||||
Owner-occupied commercial real estate
|
290
|
|
—
|
|
—
|
|
494
|
|
784
|
|
||||||||||
1-4 single family residential
|
892
|
|
44
|
|
—
|
|
1,331
|
|
2,267
|
|
||||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Home equity loans and lines of credit
|
1,128
|
|
—
|
|
—
|
|
1,720
|
|
2,848
|
|
||||||||||
Total real estate loans
|
2,670
|
|
44
|
|
—
|
|
7,438
|
|
10,152
|
|
||||||||||
Other loans:
|
||||||||||||||||||||
Commercial and industrial
|
101
|
|
—
|
|
—
|
|
394
|
|
495
|
|
||||||||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Total other loans
|
101
|
|
—
|
|
—
|
|
394
|
|
495
|
|
||||||||||
Total acquired loans
|
$
|
2,771
|
|
$
|
44
|
|
$
|
—
|
|
$
|
7,832
|
|
$
|
10,647
|
|
September 30, 2018
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
New loans:
|
||||||||||||||||
Commercial real estate
|
$
|
2,515,933
|
|
$
|
9,325
|
|
$
|
3,490
|
|
$
|
—
|
|
||||
Owner-occupied commercial real estate
|
1,131,769
|
|
584
|
|
2,440
|
|
—
|
|
||||||||
Construction, land and development
|
754,972
|
|
—
|
|
—
|
|
—
|
|
||||||||
Commercial and industrial
|
1,868,553
|
|
21,991
|
|
11,501
|
|
—
|
|
||||||||
Total new loans
|
$
|
6,271,227
|
|
$
|
31,900
|
|
$
|
17,431
|
|
$
|
—
|
|
||||
Acquired loans:
|
||||||||||||||||
Commercial real estate
|
$
|
100,413
|
|
$
|
—
|
|
$
|
3,951
|
|
$
|
—
|
|
||||
Owner-occupied commercial real estate
|
80,835
|
|
—
|
|
573
|
|
—
|
|
||||||||
Construction, land and development
|
36,881
|
|
—
|
|
—
|
|
—
|
|
||||||||
Commercial and industrial
|
42,447
|
|
1,024
|
|
3,172
|
|
—
|
|
||||||||
Total acquired loans
|
$
|
260,576
|
|
$
|
1,024
|
|
$
|
7,696
|
|
$
|
—
|
|
||||
December 31, 2017
|
Pass
|
Special
Mention |
Substandard
|
Doubtful
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
New loans:
|
||||||||||||||||
Commercial real estate
|
$
|
2,095,560
|
|
$
|
6,066
|
|
$
|
2,162
|
|
$
|
—
|
|
||||
Owner-occupied commercial real estate
|
987,781
|
|
—
|
|
—
|
|
—
|
|
||||||||
Construction, land and development
|
684,462
|
|
—
|
|
—
|
|
—
|
|
||||||||
Commercial and industrial
|
1,617,462
|
|
16,910
|
|
—
|
|
—
|
|
||||||||
Total new loans
|
$
|
5,385,265
|
|
$
|
22,976
|
|
$
|
2,162
|
|
$
|
—
|
|
||||
Acquired loans:
|
||||||||||||||||
Commercial real estate
|
$
|
33,496
|
|
$
|
—
|
|
$
|
4,240
|
|
$
|
—
|
|
||||
Owner-occupied commercial real estate
|
15,607
|
|
—
|
|
493
|
|
—
|
|
||||||||
Construction, land and development
|
5,889
|
|
—
|
|
—
|
|
—
|
|
||||||||
Commercial and industrial
|
4,324
|
|
—
|
|
738
|
|
—
|
|
||||||||
Total acquired loans
|
$
|
59,316
|
|
$
|
—
|
|
$
|
5,471
|
|
$
|
—
|
|
|
Loans - Recorded Investment
|
Allowance for Credit Loss
|
||||||||||||||||||||||
September 30, 2018
|
Individually
Evaluated for
Impairment
|
Collectively
Evaluated for
Impairment
|
ASC 310-
30 Loans
|
Individually
Evaluated for
Impairment
|
Collectively
Evaluated for
Impairment
|
ASC 310-
30 Loans
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
New loans:
|
||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
—
|
|
$
|
2,528,748
|
|
$
|
—
|
|
$
|
—
|
|
$
|
14,410
|
|
$
|
—
|
|
||||||
Owner-occupied commercial real estate
|
2,899
|
|
1,131,894
|
|
—
|
|
—
|
|
3,760
|
|
—
|
|
||||||||||||
1-4 single family residential
|
1,637
|
|
2,243,502
|
|
—
|
|
—
|
|
6,806
|
|
—
|
|
||||||||||||
Construction, land and development
|
—
|
|
754,972
|
|
—
|
|
—
|
|
5,121
|
|
—
|
|
||||||||||||
Home equity loans and lines of credit
|
126
|
|
59,603
|
|
—
|
|
63
|
|
415
|
|
—
|
|
||||||||||||
Total real estate loans
|
$
|
4,662
|
|
$
|
6,718,719
|
|
$
|
—
|
|
$
|
63
|
|
$
|
30,512
|
|
$
|
—
|
|
||||||
Other loans:
|
||||||||||||||||||||||||
Commercial and industrial
|
$
|
16,708
|
|
$
|
1,885,337
|
|
$
|
—
|
|
$
|
1,593
|
|
$
|
17,878
|
|
$
|
—
|
|
||||||
Consumer
|
—
|
|
3,976
|
|
—
|
|
—
|
|
69
|
|
—
|
|
||||||||||||
Total other loans
|
$
|
16,708
|
|
$
|
1,889,313
|
|
$
|
—
|
|
$
|
1,593
|
|
$
|
17,947
|
|
$
|
—
|
|
||||||
Acquired loans:
|
||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
3,396
|
|
$
|
100,968
|
|
$
|
133,778
|
|
$
|
—
|
|
$
|
188
|
|
$
|
1,556
|
|
||||||
Owner-occupied commercial real estate
|
—
|
|
81,408
|
|
—
|
|
—
|
|
51
|
|
—
|
|
||||||||||||
1-4 single family residential
|
267
|
|
148,392
|
|
32,240
|
|
—
|
|
144
|
|
8
|
|
||||||||||||
Construction, land and development
|
—
|
|
36,881
|
|
28,590
|
|
—
|
|
130
|
|
103
|
|
||||||||||||
Home equity loans and lines of credit
|
494
|
|
39,637
|
|
—
|
|
—
|
|
204
|
|
—
|
|
||||||||||||
Total real estate loans
|
$
|
4,157
|
|
$
|
407,286
|
|
$
|
194,608
|
|
$
|
—
|
|
$
|
717
|
|
$
|
1,667
|
|
||||||
Other loans:
|
||||||||||||||||||||||||
Commercial and industrial
|
$
|
3,442
|
|
$
|
43,201
|
|
$
|
19,503
|
|
$
|
394
|
|
$
|
53
|
|
$
|
80
|
|
||||||
Consumer
|
—
|
|
13,950
|
|
1,259
|
|
—
|
|
3
|
|
119
|
|
||||||||||||
Total other loans
|
$
|
3,442
|
|
$
|
57,151
|
|
$
|
20,762
|
|
$
|
394
|
|
$
|
56
|
|
$
|
199
|
|
||||||
Total Loans:
|
||||||||||||||||||||||||
Unallocated
|
$
|
—
|
|
$
|
9,316,808
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
Loans - Recorded Investment
|
Allowance for Credit Loss
|
||||||||||||||||||||||
December 31, 2017
|
Individually
Evaluated for
Impairment
|
Collectively
Evaluated for
Impairment
|
ASC 310-
30 Loans
|
Individually
Evaluated for
Impairment
|
Collectively
Evaluated for
Impairment
|
ASC 310-
30 Loans
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
New loans:
|
||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
—
|
|
$
|
2,103,788
|
|
$
|
—
|
|
$
|
—
|
|
$
|
12,084
|
|
$
|
—
|
|
||||||
Owner-occupied commercial real estate
|
—
|
|
987,781
|
|
—
|
|
—
|
|
3,310
|
|
—
|
|
||||||||||||
1-4 single family residential
|
1,096
|
|
2,184,266
|
|
—
|
|
—
|
|
7,769
|
|
—
|
|
||||||||||||
Construction, land and development
|
—
|
|
684,462
|
|
—
|
|
—
|
|
4,164
|
|
—
|
|
||||||||||||
Home equity loans and lines of credit
|
130
|
|
59,506
|
|
—
|
|
66
|
|
409
|
|
—
|
|
||||||||||||
Total real estate loans
|
$
|
1,226
|
|
$
|
6,019,803
|
|
$
|
—
|
|
$
|
66
|
|
$
|
27,736
|
|
$
|
—
|
|
||||||
Other loans:
|
||||||||||||||||||||||||
Commercial and industrial
|
$
|
—
|
|
$
|
1,634,372
|
|
$
|
—
|
|
$
|
—
|
|
$
|
14,702
|
|
$
|
—
|
|
||||||
Consumer
|
—
|
|
5,984
|
|
—
|
|
—
|
|
121
|
|
—
|
|
||||||||||||
Total other loans
|
$
|
—
|
|
$
|
1,640,356
|
|
$
|
—
|
|
$
|
—
|
|
$
|
14,823
|
|
$
|
—
|
|
||||||
Acquired Loans:
|
||||||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||||||
Commercial real estate
|
$
|
3,893
|
|
$
|
33,843
|
|
$
|
104,335
|
|
$
|
129
|
|
$
|
209
|
|
$
|
1,448
|
|
||||||
Owner-occupied commercial real estate
|
—
|
|
16,100
|
|
—
|
|
—
|
|
55
|
|
—
|
|
||||||||||||
1-4 single family residential
|
267
|
|
57,428
|
|
27,513
|
|
—
|
|
184
|
|
25
|
|
||||||||||||
Construction, land and development
|
—
|
|
5,889
|
|
13,167
|
|
—
|
|
36
|
|
145
|
|
||||||||||||
Home equity loans and lines of credit
|
495
|
|
34,094
|
|
—
|
|
—
|
|
199
|
|
—
|
|
||||||||||||
Total real estate loans
|
$
|
4,655
|
|
$
|
147,354
|
|
$
|
145,015
|
|
$
|
129
|
|
$
|
683
|
|
$
|
1,618
|
|
||||||
Other loans:
|
||||||||||||||||||||||||
Commercial and industrial
|
$
|
272
|
|
$
|
4,790
|
|
$
|
12,631
|
|
$
|
272
|
|
$
|
41
|
|
$
|
126
|
|
||||||
Consumer
|
—
|
|
259
|
|
1,423
|
|
—
|
|
6
|
|
145
|
|
||||||||||||
Total other loans
|
$
|
272
|
|
$
|
5,049
|
|
$
|
14,054
|
|
$
|
272
|
|
$
|
47
|
|
$
|
271
|
|
||||||
Total Loans:
|
||||||||||||||||||||||||
Unallocated
|
$
|
—
|
|
$
|
7,977,784
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,500
|
|
$
|
—
|
|
|
Impaired Loans - With Allowance
|
Impaired Loans - With no
Allowance
|
||||||||||||||||||
September 30, 2018
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
New loans:
|
||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Commercial real estate
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
459
|
|
$
|
470
|
|
|||||
Owner-occupied commercial real estate
|
—
|
|
—
|
|
—
|
|
2,440
|
|
2,440
|
|
||||||||||
1-4 single family residential
|
—
|
|
—
|
|
—
|
|
1,637
|
|
1,641
|
|
||||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Home equity loans and lines of credit
|
63
|
|
66
|
|
63
|
|
63
|
|
63
|
|
||||||||||
Total real estate loans
|
$
|
63
|
|
$
|
66
|
|
$
|
63
|
|
$
|
4,599
|
|
$
|
4,614
|
|
|||||
Other loans:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
16,708
|
|
$
|
16,708
|
|
$
|
1,593
|
|
$
|
—
|
|
$
|
—
|
|
|||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Total other loans
|
$
|
16,708
|
|
$
|
16,708
|
|
$
|
1,593
|
|
$
|
—
|
|
$
|
—
|
|
|||||
Acquired loans:
|
||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Commercial real estate
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3,396
|
|
$
|
4,991
|
|
|||||
Owner-occupied commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
1-4 single family residential
|
—
|
|
—
|
|
—
|
|
267
|
|
267
|
|
||||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Home equity loans and lines of credit
|
—
|
|
—
|
|
—
|
|
495
|
|
495
|
|
||||||||||
Total real estate loans
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
4,158
|
|
$
|
5,753
|
|
|||||
Other loans:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
394
|
|
$
|
394
|
|
$
|
394
|
|
$
|
3,047
|
|
$
|
6,948
|
|
|||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Total other loans
|
$
|
394
|
|
$
|
394
|
|
$
|
394
|
|
$
|
3,047
|
|
$
|
6,948
|
|
|
Impaired Loans - With Allowance
|
Impaired Loans - With no
Allowance
|
||||||||||||||||||
December 31, 2017
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
Related
Allowance
|
Recorded
Investment
|
Unpaid
Principal
Balance
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
New loans:
|
||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Commercial real estate
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|||||
Owner-occupied commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
1-4 single family residential
|
—
|
|
—
|
|
—
|
|
1,096
|
|
1,096
|
|
||||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Home equity loans and lines of credit
|
66
|
|
66
|
|
66
|
|
63
|
|
63
|
|
||||||||||
Total real estate loans
|
$
|
66
|
|
$
|
66
|
|
$
|
66
|
|
$
|
1,159
|
|
$
|
1,159
|
|
|||||
Other loans:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Total other loans
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|||||
Acquired loans:
|
||||||||||||||||||||
Real estate loans:
|
||||||||||||||||||||
Commercial real estate
|
$
|
336
|
|
$
|
347
|
|
$
|
129
|
|
$
|
3,557
|
|
$
|
4,991
|
|
|||||
Owner-occupied commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
1-4 single family residential
|
—
|
|
—
|
|
—
|
|
267
|
|
267
|
|
||||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Home equity loans and lines of credit
|
—
|
|
—
|
|
—
|
|
495
|
|
495
|
|
||||||||||
Total real estate loans
|
$
|
336
|
|
$
|
347
|
|
$
|
129
|
|
$
|
4,319
|
|
$
|
5,753
|
|
|||||
Other loans:
|
||||||||||||||||||||
Commercial and industrial
|
$
|
272
|
|
$
|
272
|
|
$
|
272
|
|
$
|
—
|
|
$
|
—
|
|
|||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Total other loans
|
$
|
272
|
|
$
|
272
|
|
$
|
272
|
|
$
|
—
|
|
$
|
—
|
|
|
Three Months Ended September 30,
|
|||||||||||||||
|
2018
|
2017
|
||||||||||||||
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Impaired loans with no related allowance:
|
||||||||||||||||
Real estate loans:
|
||||||||||||||||
Commercial real estate
|
$
|
3,887
|
|
$
|
—
|
|
$
|
3,629
|
|
$
|
—
|
|
||||
Owner-occupied commercial real estate
|
2,440
|
|
—
|
|
—
|
|
—
|
|
||||||||
1-4 single family residential
|
1,903
|
|
—
|
|
1,363
|
|
—
|
|
||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Home equity loans and lines of credit
|
558
|
|
—
|
|
534
|
|
—
|
|
||||||||
Total real estate loans
|
$
|
8,788
|
|
$
|
—
|
|
$
|
5,526
|
|
$
|
—
|
|
||||
Other loans:
|
||||||||||||||||
Commercial and industrial
|
$
|
3,038
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Total other loans
|
$
|
3,038
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
||||
Impaired loans with an allowance:
|
||||||||||||||||
Real estate loans:
|
||||||||||||||||
Commercial real estate
|
$
|
—
|
|
$
|
—
|
|
$
|
336
|
|
$
|
—
|
|
||||
Owner-occupied commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
1-4 single family residential
|
—
|
|
—
|
|
497
|
|
—
|
|
||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Home equity loans and lines of credit
|
63
|
|
—
|
|
66
|
|
—
|
|
||||||||
Total real estate loans
|
$
|
63
|
|
$
|
—
|
|
$
|
899
|
|
$
|
—
|
|
||||
Other loans:
|
||||||||||||||||
Commercial and industrial
|
$
|
17,102
|
|
$
|
—
|
|
$
|
299
|
|
$
|
—
|
|
||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Total other loans
|
$
|
17,102
|
|
$
|
—
|
|
$
|
299
|
|
$
|
—
|
|
|
Nine Months Ended September 30,
|
|||||||||||||||
|
2018
|
2017
|
||||||||||||||
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Impaired loans with no related allowance:
|
||||||||||||||||
Real estate loans:
|
||||||||||||||||
Commercial real estate
|
$
|
3,636
|
|
$
|
—
|
|
$
|
3,677
|
|
$
|
—
|
|
||||
Owner-occupied commercial real estate
|
1,058
|
|
—
|
|
—
|
|
—
|
|
||||||||
1-4 single family residential
|
1,537
|
|
—
|
|
1,174
|
|
—
|
|
||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Home equity loans and lines of credit
|
558
|
|
—
|
|
750
|
|
—
|
|
||||||||
Total real estate loans
|
$
|
6,789
|
|
$
|
—
|
|
$
|
5,601
|
|
$
|
—
|
|
||||
Other loans:
|
||||||||||||||||
Commercial and industrial
|
$
|
1,284
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Total other loans
|
$
|
1,284
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
||||
Impaired loans with an allowance:
|
||||||||||||||||
Real estate loans:
|
||||||||||||||||
Commercial real estate
|
$
|
—
|
|
$
|
—
|
|
$
|
529
|
|
$
|
—
|
|
||||
Owner-occupied commercial real estate
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
1-4 single family residential
|
—
|
|
—
|
|
509
|
|
—
|
|
||||||||
Construction, land and development
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Home equity loans and lines of credit
|
65
|
|
—
|
|
201
|
|
—
|
|
||||||||
Total real estate loans
|
$
|
65
|
|
$
|
—
|
|
$
|
1,239
|
|
$
|
—
|
|
||||
Other loans:
|
||||||||||||||||
Commercial and industrial
|
$
|
11,528
|
|
$
|
—
|
|
$
|
333
|
|
$
|
—
|
|
||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Total other loans
|
$
|
11,528
|
|
$
|
—
|
|
$
|
333
|
|
$
|
—
|
|
|
September 30, 2018
|
December 31, 2017
|
||||||
|
(Dollars in thousands)
|
|||||||
Goodwill
|
$
|
139,529
|
|
$
|
81,204
|
|
||
Core deposit intangible
|
18,950
|
|
14,370
|
|
||||
Less: Accumulated amortization
|
(11,737
|
)
|
(10,702
|
)
|
||||
Net core deposit intangible
|
$
|
7,213
|
|
$
|
3,668
|
|
Remainder of 2018
|
2019
|
2020
|
2021
|
2022
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Core deposit intangible
|
$
|
370
|
|
$
|
1,481
|
|
$
|
968
|
|
$
|
818
|
|
$
|
818
|
|
September 30, 2018
|
Derivative Assets
|
Derivative Liabilities
|
||||||||||||||
|
Notional
|
Fair Value
|
Notional
|
Fair Value
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Derivatives designated as cash flow hedges:
|
||||||||||||||||
Interest rate contracts - pay fixed, receive floating
|
$
|
250,000
|
|
$
|
1,750
|
|
$
|
—
|
|
$
|
—
|
|
||||
Total cash flow hedges
|
250,000
|
|
1,750
|
|
—
|
|
—
|
|
||||||||
Derivatives not designated as hedges:
|
||||||||||||||||
Interest rate contracts - pay floating, receive fixed
|
543,748
|
|
6,682
|
|
1,005,701
|
|
25,549
|
|
||||||||
Interest rate contracts - pay fixed, receive floating
|
1,005,701
|
|
22,954
|
|
543,748
|
|
4,087
|
|
||||||||
Interest rate caps purchased
|
94,534
|
|
312
|
|
—
|
|
—
|
|
||||||||
Interest rate caps sold
|
—
|
|
—
|
|
94,534
|
|
312
|
|
||||||||
Risk participation agreements
|
—
|
|
—
|
|
34,307
|
|
—
|
|
||||||||
Total derivatives not designated as hedges
|
1,643,983
|
|
29,948
|
|
1,678,290
|
|
29,948
|
|
||||||||
Total derivatives
|
$
|
1,893,983
|
|
$
|
31,698
|
|
$
|
1,678,290
|
|
$
|
29,948
|
|
December 31, 2017
|
Derivative Assets
|
Derivative Liabilities
|
||||||||||||||
|
Notional
|
Fair Value
|
Notional
|
Fair Value
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Derivatives not designated as hedges:
|
||||||||||||||||
Interest rate contracts - pay floating, receive fixed
|
$
|
757,887
|
|
$
|
11,678
|
|
$
|
380,233
|
|
$
|
4,180
|
|
||||
Interest rate contracts - pay fixed, receive floating
|
380,233
|
|
—
|
|
757,887
|
|
7,498
|
|
||||||||
Interest rate caps - purchased
|
94,884
|
|
155
|
|
—
|
|
—
|
|
||||||||
Interest rate caps - sold
|
—
|
|
—
|
|
94,884
|
|
155
|
|
||||||||
Total derivatives
|
$
|
1,233,004
|
|
$
|
11,833
|
|
$
|
1,233,004
|
|
$
|
11,833
|
|
September 30, 2018
|
Amount of Gain (Loss) Recognized in AOCI
|
Amount of Gain (Loss) Reclassified from AOCI to Interest Expense
|
Location of Gain (Loss) Reclassified from AOCI into Income
|
|||||
(Dollars in thousands)
|
||||||||
Derivatives designated as cash flow hedges:
|
||||||||
Interest rate contracts - pay fixed, receive floating
|
1,313
|
|
—
|
|
Interest on borrowings
|
September 30, 2018
|
Gross
amounts
of
recognized
liabilities
|
Gross
amounts
offset in the
consolidated
balance
sheets
|
Net amounts
in the
consolidated
balance
sheets
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||
Offsetting derivative liabilities:
|
||||||||||||
Counterparty A - Interest rate contracts
|
$
|
24,648
|
|
$
|
(1,694
|
)
|
$
|
22,954
|
|
|||
Centrally Cleared - Interest rate contracts
|
$
|
901
|
|
$
|
(4,989
|
)
|
$
|
(4,088
|
)
|
December 31, 2017
|
Gross
amounts
of
recognized
liabilities
|
Gross
amounts
offset in the
consolidated
balance
sheets
|
Net amounts
in the
consolidated
balance
sheets
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||
Offsetting derivative liabilities:
|
||||||||||||
Counterparty A - Interest rate contracts
|
$
|
11,833
|
|
$
|
(4,491
|
)
|
$
|
7,342
|
|
|
September 30, 2018
|
December 31, 2017
|
||||||
|
(Dollars in thousands)
|
|||||||
Noninterest-bearing demand deposits
|
$
|
1,577,741
|
|
$
|
1,236,685
|
|
||
Interest-bearing demand deposits
|
1,207,859
|
|
1,454,097
|
|
||||
Interest-bearing NOW accounts
|
410,226
|
|
363,191
|
|
||||
Savings and money market accounts
|
2,607,093
|
|
3,013,237
|
|
||||
Time deposits
|
4,353,196
|
|
2,606,717
|
|
||||
Total deposits
|
$
|
10,156,115
|
|
$
|
8,673,927
|
|
||
Time deposits $100,000 and greater
|
$
|
3,005,138
|
|
$
|
1,983,445
|
|
||
Time deposits greater than $250,000
|
1,623,796
|
|
1,078,702
|
|
|
Three Months Ended September 30,
|
|||||||||||||||||||||||
|
2018
|
2017
|
||||||||||||||||||||||
|
Before
Tax
|
Tax
Effect
|
Net
of Tax
|
Before
Tax
|
Tax
Effect
|
Net
of Tax
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Unrealized gains (losses) on debt securities available for sale:
|
||||||||||||||||||||||||
Balance at beginning of period
|
$
|
(25,353
|
)
|
$
|
6,326
|
|
$
|
(19,027
|
)
|
$
|
25,468
|
|
$
|
(9,744
|
)
|
$
|
15,724
|
|
||||||
Net unrealized holding gain (loss) arising during the period
|
(11,095
|
)
|
2,768
|
|
(8,327
|
)
|
(967
|
)
|
369
|
|
(598
|
)
|
||||||||||||
Amounts reclassified to (gain) loss on investment securities, net
|
1,677
|
|
(418
|
)
|
1,259
|
|
(1,409
|
)
|
540
|
|
(869
|
)
|
||||||||||||
Balance at end of period
|
(34,771
|
)
|
8,676
|
|
(26,095
|
)
|
23,092
|
|
(8,835
|
)
|
14,257
|
|
||||||||||||
Unrealized gains (losses) on derivative instruments:
|
||||||||||||||||||||||||
Balance at beginning of period
|
124
|
|
(31
|
)
|
93
|
|
—
|
|
—
|
|
—
|
|
||||||||||||
Net unrealized holding gains (losses) arising during the period
|
1,626
|
|
(406
|
)
|
1,220
|
|
—
|
|
—
|
|
—
|
|
||||||||||||
Balance at end of period
|
1,750
|
|
(437
|
)
|
1,313
|
|
—
|
|
—
|
|
—
|
|
||||||||||||
Total accumulated other comprehensive income (loss)
|
$
|
(33,021
|
)
|
$
|
8,239
|
|
$
|
(24,782
|
)
|
$
|
23,092
|
|
$
|
(8,835
|
)
|
$
|
14,257
|
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
|
2018
|
2017
|
||||||||||||||||||||||
|
Before
Tax |
Tax
Effect |
Net
of Tax |
Before
Tax |
Tax
Effect |
Net
of Tax |
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Balance at beginning of period
|
$
|
14,402
|
|
$
|
(5,509
|
)
|
$
|
8,893
|
|
$
|
(6,504
|
)
|
$
|
2,509
|
|
$
|
(3,995
|
)
|
||||||
Unrealized gain (loss) on investment securities available for sale:
|
||||||||||||||||||||||||
Net unrealized holdings gain (loss) arising during the period
|
(48,163
|
)
|
12,017
|
|
(36,146
|
)
|
31,650
|
|
(12,131
|
)
|
19,519
|
|
||||||||||||
Amounts reclassified to (gain) loss on investment securities
|
577
|
|
(144
|
)
|
433
|
|
(2,054
|
)
|
787
|
|
(1,267
|
)
|
||||||||||||
Cumulative adjustment from adoption of new accounting standards
|
(1,587
|
)
|
2,312
|
|
725
|
|
—
|
|
—
|
|
—
|
|
||||||||||||
Balance at end of period
|
(34,771
|
)
|
8,676
|
|
(26,095
|
)
|
23,092
|
|
(8,835
|
)
|
14,257
|
|
||||||||||||
Unrealized gains (losses) on derivative instruments:
|
||||||||||||||||||||||||
Balance at beginning of period
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||||
Net unrealized holding gains (losses) arising during the period
|
1,750
|
|
(437
|
)
|
1,313
|
|
—
|
|
—
|
|
—
|
|
||||||||||||
Balance at end of period
|
1,750
|
|
(437
|
)
|
1,313
|
|
—
|
|
—
|
|
—
|
|
||||||||||||
Total accumulated other comprehensive income (loss)
|
$
|
(33,021
|
)
|
$
|
8,239
|
|
$
|
(24,782
|
)
|
$
|
23,092
|
|
$
|
(8,835
|
)
|
$
|
14,257
|
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
||||||||||||
|
(Dollars in thousands, except share and per share data)
|
|||||||||||||||
Net income available to common stockholders
|
$
|
43,480
|
|
$
|
32,160
|
|
$
|
126,313
|
|
$
|
106,230
|
|
||||
Weighted average number of common shares - basic
|
46,693,707
|
|
43,333,947
|
|
46,213,176
|
|
42,580,426
|
|
||||||||
Effect of dilutive securities:
|
||||||||||||||||
Employee stock-based compensation awards
|
2,111,164
|
|
2,855,521
|
|
2,259,481
|
|
3,380,169
|
|
||||||||
Weighted average number of common shares - diluted
|
48,804,871
|
|
46,189,468
|
|
48,472,657
|
|
45,960,595
|
|
||||||||
Basic earnings per share
|
$
|
0.93
|
|
$
|
0.74
|
|
$
|
2.73
|
|
$
|
2.49
|
|
||||
Diluted earnings per share
|
$
|
0.89
|
|
$
|
0.70
|
|
$
|
2.61
|
|
$
|
2.31
|
|
||||
Weighted average number of anti-dilutive equity awards
|
48,708
|
|
41,040
|
|
25,332
|
|
20,942
|
|
|
2009 Stock Option Plan
|
||||||
|
Options
|
Weighted
Average
Exercise
Price
|
|||||
Outstanding at January 1, 2018
|
1,314,924
|
|
$
|
20.65
|
|
||
Granted
|
—
|
|
—
|
|
|||
Exercised
|
(142,602
|
)
|
21.15
|
|
|||
Forfeited
|
—
|
|
—
|
|
|||
Expired
|
—
|
|
—
|
|
|||
Outstanding at September 30, 2018
|
1,172,322
|
|
$
|
20.58
|
|
||
Exercisable at September 30, 2018
|
1,172,322
|
|
$
|
20.58
|
|
||
Vested at September 30, 2018
|
1,172,322
|
|
$
|
20.58
|
|
||
Vested and expected to vest at September 30, 2018
|
1,172,322
|
|
$
|
20.58
|
|
|
2013 Stock Incentive Plan Options
|
||||||
|
Options
|
Weighted
Average
Exercise
Price
|
|||||
Outstanding at January 1, 2018
|
1,424,953
|
|
$
|
20.79
|
|
||
Granted
|
—
|
|
—
|
|
|||
Exercised
|
(245,611
|
)
|
20.53
|
|
|||
Forfeited
|
—
|
|
—
|
|
|||
Expired
|
—
|
|
—
|
|
|||
Outstanding at September 30, 2018
|
1,179,342
|
|
$
|
20.84
|
|
||
Exercisable at September 30, 2018
|
1,179,342
|
|
$
|
20.84
|
|
||
Vested at September 30, 2018
|
1,179,342
|
|
$
|
20.84
|
|
||
Vested and expected to vest at September 30, 2018
|
1,179,342
|
|
$
|
20.84
|
|
|
2016 Stock Incentive Plan Options
|
||||||
|
Options
|
Weighted
Average
Exercise
Price
|
|||||
Outstanding at January 1, 2018
|
762,500
|
|
$
|
36.64
|
|
||
Granted
|
—
|
|
—
|
|
|||
Exercised
|
—
|
|
—
|
|
|||
Forfeited
|
(30,000
|
)
|
36.11
|
|
|||
Expired
|
—
|
|
—
|
|
|||
Outstanding at September 30, 2018
|
732,500
|
|
$
|
36.66
|
|
||
Exercisable at September 30, 2018
|
—
|
|
$
|
—
|
|
||
Vested at September 30, 2018
|
—
|
|
$
|
—
|
|
||
Vested and expected to vest at September 30, 2018
|
732,500
|
|
$
|
36.66
|
|
2016 Stock Incentive Plan
|
|||||||||||||||||||||
Restricted Stock Awards
|
Restricted Stock Unit Awards
|
Performance Restricted Stock Unit Awards
|
|||||||||||||||||||
Shares
|
Weighted Average Grant Date Fair Value
|
Shares
|
Weighted Average Grant Date Fair Value
|
Shares
|
Weighted Average Grant Date Fair Value
|
||||||||||||||||
(Dollars in thousands, except per share data)
|
|||||||||||||||||||||
Outstanding at January 1, 2018
|
96,133
|
|
$
|
42.23
|
|
88,015
|
|
$
|
50.34
|
|
73,144
|
|
$
|
47.85
|
|
||||||
Granted
|
—
|
|
—
|
|
72,567
|
|
56.52
|
|
84,836
|
|
56.10
|
|
|||||||||
Vested
|
—
|
|
—
|
|
(20,459
|
)
|
52.38
|
|
—
|
|
—
|
|
|||||||||
Forfeited
|
—
|
|
—
|
|
(5,300
|
)
|
52.62
|
|
—
|
|
—
|
|
|||||||||
Outstanding at September 30, 2018
|
96,133
|
|
$
|
42.23
|
|
134,823
|
|
$
|
53.27
|
|
157,980
|
|
$
|
52.28
|
|
Restricted Stock Awards
|
Restricted Stock Unit Awards
|
Performance Restricted Stock Unit Awards
|
||||||||||||||||||||||
Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
2018
|
2017
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Stock-based compensation expense
|
$
|
1,968
|
|
$
|
2,570
|
|
$
|
1,710
|
|
$
|
863
|
|
$
|
1,855
|
|
$
|
649
|
|
||||||
Unrecognized compensation expense related to stock-based compensation
|
$
|
1,145
|
|
$
|
4,216
|
|
$
|
6,183
|
|
$
|
1,067
|
|
$
|
5,437
|
|
$
|
2,851
|
|
||||||
Weighted-average life over which expense is expected to be recognized (years)
|
0.78
|
|
1.41
|
|
4.05
|
|
3.65
|
|
1.96
|
|
2.25
|
|
September 30, 2018
|
December 31, 2017
|
|||||||
|
(Dollars in thousands)
|
|||||||
Commitments to fund loans
|
$
|
1,159,541
|
|
$
|
926,405
|
|
||
Unused lines of credit
|
774,695
|
|
571,587
|
|
||||
Commercial and standby letters of credit
|
50,945
|
|
46,520
|
|
||||
Total
|
$
|
1,985,181
|
|
$
|
1,544,512
|
|
September 30, 2018
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Assets:
|
||||||||||||||||
U.S. Government agencies and sponsored enterprises obligations
|
$
|
—
|
|
$
|
84,232
|
|
$
|
—
|
|
$
|
84,232
|
|
||||
U.S. Government agencies and sponsored enterprises mortgage-backed securities
|
—
|
|
604,158
|
|
—
|
|
604,158
|
|
||||||||
State and municipal obligations
|
—
|
|
22,882
|
|
—
|
|
22,882
|
|
||||||||
Asset-backed securities
|
—
|
|
778,322
|
|
—
|
|
778,322
|
|
||||||||
Corporate bonds and other debt securities
|
52,966
|
|
733,143
|
|
—
|
|
786,109
|
|
||||||||
Preferred stocks and other equity securities
|
12,590
|
|
58,425
|
|
—
|
|
71,015
|
|
||||||||
Derivative assets
|
—
|
|
31,699
|
|
—
|
|
31,699
|
|
||||||||
Total
|
$
|
65,556
|
|
$
|
2,312,861
|
|
$
|
—
|
|
$
|
2,378,417
|
|
||||
Liabilities:
|
||||||||||||||||
Derivative liabilities
|
$
|
—
|
|
$
|
29,949
|
|
$
|
—
|
|
$
|
29,949
|
|
||||
Total
|
$
|
—
|
|
$
|
29,949
|
|
$
|
—
|
|
$
|
29,949
|
|
December 31, 2017
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Assets:
|
||||||||||||||||
U.S. Government agencies and sponsored enterprises obligations
|
$
|
—
|
|
$
|
42,838
|
|
$
|
—
|
|
$
|
42,838
|
|
||||
U.S. Government agencies and sponsored enterprises mortgage-backed securities
|
—
|
|
595,237
|
|
—
|
|
595,237
|
|
||||||||
State and municipal obligations
|
—
|
|
26,172
|
|
—
|
|
26,172
|
|
||||||||
Asset-backed securities
|
—
|
|
610,546
|
|
—
|
|
610,546
|
|
||||||||
Corporate bonds and other debt securities
|
55,970
|
|
699,933
|
|
—
|
|
755,903
|
|
||||||||
Preferred stocks and other equity securities
|
12,954
|
|
77,153
|
|
—
|
|
90,107
|
|
||||||||
Derivative assets
|
—
|
|
11,833
|
|
—
|
|
11,833
|
|
||||||||
Total
|
$
|
68,924
|
|
$
|
2,063,712
|
|
$
|
—
|
|
$
|
2,132,636
|
|
||||
Liabilities:
|
||||||||||||||||
Derivative liabilities
|
$
|
—
|
|
$
|
11,833
|
|
$
|
—
|
|
$
|
11,833
|
|
||||
Total
|
$
|
—
|
|
$
|
11,833
|
|
$
|
—
|
|
$
|
11,833
|
|
Level 3 Assets:
|
September 30, 2018
|
December 31, 2017
|
Valuation Technique
|
Unobservable Inputs
|
Range (Weighted Average)
|
||||||||||
(Dollars in thousands)
|
|||||||||||||||
Impaired loans
|
$
|
28,969
|
|
$
|
6,153
|
|
Third party appraisals and discounted cash flows
|
Collateral discounts and discount rates
|
0% - 100% (7.1%)
|
|
|||||
Other real estate owned
|
10,534
|
|
14,906
|
|
Third party appraisals
|
Collateral discounts and estimated cost to sell
|
10
|
%
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Negative valuation adjustments:
|
||||||||||||||||
Impaired loans
|
$
|
122
|
|
$
|
—
|
|
$
|
1,715
|
|
$
|
—
|
|
||||
Foreclosed real estate
|
9
|
|
54
|
|
1,106
|
|
437
|
|
September 30, 2018
|
Carrying
Value
|
Fair
Value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
200,509
|
|
$
|
200,509
|
|
$
|
200,509
|
|
$
|
—
|
|
$
|
—
|
|
|||||
Available for sale debt securities
|
2,275,703
|
|
2,275,703
|
|
52,966
|
|
2,222,737
|
|
—
|
|
||||||||||
Preferred stocks and other equity securities
|
71,015
|
|
71,015
|
|
12,590
|
|
58,425
|
|
—
|
|
||||||||||
FHLB and other bank stock
|
65,847
|
|
65,847
|
|
—
|
|
65,847
|
|
—
|
|
||||||||||
Loans, net
|
9,263,660
|
|
9,185,518
|
|
—
|
|
—
|
|
9,185,518
|
|
||||||||||
Loans held for sale
|
980
|
|
980
|
|
—
|
|
980
|
|
—
|
|
||||||||||
Bank-owned life insurance
|
215,421
|
|
215,421
|
|
—
|
|
215,421
|
|
—
|
|
||||||||||
Derivative assets
|
31,699
|
|
31,699
|
|
—
|
|
31,699
|
|
—
|
|
||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Deposits
|
$
|
10,156,115
|
|
$
|
10,133,649
|
|
$
|
—
|
|
$
|
10,133,649
|
|
$
|
—
|
|
|||||
Advances from the FHLB and other borrowings
|
825,558
|
|
853,004
|
|
—
|
|
853,004
|
|
—
|
|
||||||||||
Derivative liabilities
|
29,949
|
|
29,949
|
|
—
|
|
29,949
|
|
—
|
|
December 31, 2017
|
Carrying
Value
|
Fair
Value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Financial Assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
115,921
|
|
$
|
115,921
|
|
$
|
115,921
|
|
$
|
—
|
|
$
|
—
|
|
|||||
Available for sale debt securities
|
2,030,696
|
|
2,130,696
|
|
55,970
|
|
1,974,726
|
|
—
|
|
||||||||||
Preferred stocks and other equity securities
|
90,107
|
|
90,107
|
|
12,954
|
|
77,153
|
|
—
|
|
||||||||||
FHLB and other bank stock
|
56,881
|
|
56,881
|
|
—
|
|
56,881
|
|
—
|
|
||||||||||
Loans, net
|
7,930,639
|
|
7,877,094
|
|
—
|
|
—
|
|
7,877,094
|
|
||||||||||
Loans held for sale
|
12,736
|
|
12,736
|
|
—
|
|
12,736
|
|
—
|
|
||||||||||
Bank-owned life insurance
|
201,069
|
|
201,069
|
|
—
|
|
201,069
|
|
—
|
|
||||||||||
Derivative assets
|
11,833
|
|
11,833
|
|
—
|
|
11,833
|
|
—
|
|
||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Deposits
|
$
|
8,673,927
|
|
$
|
8,664,125
|
|
$
|
—
|
|
$
|
8,664,125
|
|
$
|
—
|
|
|||||
Advances from the FHLB and other borrowings
|
749,113
|
|
740,941
|
|
—
|
|
740,941
|
|
—
|
|
||||||||||
Derivative liabilities
|
11,833
|
|
11,833
|
|
—
|
|
11,833
|
|
—
|
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Noninterest Income
|
||||||||||||||||
In-scope of Topic 606:
|
||||||||||||||||
NSF/OD Fees
|
$
|
416
|
|
$
|
328
|
|
$
|
1,149
|
|
$
|
1,113
|
|
||||
Fees on deposit accounts
|
850
|
|
613
|
|
2,354
|
|
1,645
|
|
||||||||
Service charges and fees
|
1,266
|
|
941
|
|
3,503
|
|
2,758
|
|
||||||||
ATM and debit card income
|
261
|
|
551
|
|
1,571
|
|
1,762
|
|
||||||||
Safe deposit box
|
19
|
|
18
|
|
70
|
|
67
|
|
||||||||
Merchant revenue
|
214
|
|
188
|
|
633
|
|
531
|
|
||||||||
Ancillary fees and income
|
195
|
|
88
|
|
457
|
|
266
|
|
||||||||
CD custody income and fees
|
161
|
|
—
|
|
384
|
|
—
|
|
||||||||
Misc other income
|
100
|
|
134
|
|
581
|
|
3,922
|
|
||||||||
Gain (loss) on sales of other real estate owned
|
(70
|
)
|
(143
|
)
|
43
|
|
(121
|
)
|
||||||||
Noninterest Income (in-scope of Topic 606)
|
$
|
2,146
|
|
$
|
1,777
|
|
$
|
7,242
|
|
$
|
9,185
|
|
||||
Out-of-scope of Topic 606:
|
||||||||||||||||
Gain (loss) on sale of loans
|
$
|
142
|
|
$
|
1,233
|
|
$
|
92
|
|
$
|
2,199
|
|
||||
Gain (loss) on sale of fixed assets
|
(24
|
)
|
6
|
|
(13
|
)
|
7
|
|
||||||||
Loan and other fees
|
5,043
|
|
2,831
|
|
13,261
|
|
8,374
|
|
||||||||
Bank-owned life insurance income
|
1,439
|
|
1,422
|
|
4,228
|
|
4,250
|
|
||||||||
Income from resolution of acquired assets
|
202
|
|
466
|
|
603
|
|
1,548
|
|
||||||||
Gain (loss) on investment securities
|
(184
|
)
|
690
|
|
(1,472
|
)
|
1,722
|
|
||||||||
Noninterest Income (out-of-scope of Topic 606)
|
6,618
|
|
6,648
|
|
16,699
|
|
18,100
|
|
||||||||
Total noninterest income
|
$
|
8,764
|
|
$
|
8,425
|
|
$
|
23,941
|
|
$
|
27,285
|
|
Exhibit 99.4
UNAUDITED PRO FORMA
COMBINED CONDENSED CONSOLIDATED FINANCIAL INFORMATION
The following unaudited pro forma combined condensed consolidated financial information combines the historical consolidated financial position and results of operations of Synovus and its subsidiaries and FCB and its subsidiaries, as an acquisition by Synovus of FCB using the acquisition method of accounting and giving effect to the related pro forma adjustments described in the accompanying notes. Under the acquisition method of accounting, the assets and liabilities of FCB will be recorded by Synovus at their respective fair values as of the date the merger is completed. The unaudited pro forma combined financial information should be read in conjunction with Synovus Quarterly Report on Form 10-Q for the period ended September 30, 2018, and Annual Report on Form 10-K for the year ended December 31, 2017, which are incorporated in this joint proxy statement/prospectus by reference, and FCBs Quarterly Report on Form 10-Q for the period ended September 30, 2018, and Annual Report on Form 10-K for the year ended December 31, 2017, which are incorporated in this joint proxy statement/prospectus by reference.
The merger was announced on July 23, 2018, and provides that each outstanding share of FCB Class A common stock held immediately prior to the effective time of the merger, except for specified shares of FCB Class A common stock owned by FCB or Synovus (which will be cancelled), will be automatically converted into the right to receive the merger consideration. The merger and the upstream merger are intended to qualify as a reorganization within the meaning of Section 368(a) of the Internal Revenue Code. Therefore, except with respect to cash received instead of a fractional share of Synovus common stock, no gain or loss will be recognized by U.S. holders of FCB Class A common stock on the exchange of FCB Class A common stock for Synovus common stock in connection with the merger.
The unaudited pro forma combined condensed balance sheet gives effect to the merger as if the transaction had occurred on September 30, 2018. The unaudited pro forma combined condensed income statements for the nine months ended September 30, 2018, and the year ended December 31, 2017, give effect to the merger as if the transaction had become effective on January 1, 2017.
The unaudited pro forma combined condensed financial information is presented for illustrative purposes only and does not indicate the financial results of the combined company had the companies actually been combined at the beginning of each period presented, nor the impact of possible business model changes. The unaudited pro forma combined condensed consolidated financial information also does not consider any potential effects of changes in market conditions on revenues, expense efficiencies, asset dispositions, extinguishment of liabilities and share repurchases, among other factors.
1
SYNOVUS AND SUBSIDIARIES UNAUDITED PRO FORMA COMBINED CONDENSED
CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 2018
in thousands, except per share data |
Synovus As Reported |
FCB As Reported |
Pro Forma Adjustments |
Ref |
Pro Forma Combined Synovus |
||||||||||
ASSETS |
|||||||||||||||
Cash and cash equivalents |
$ | 1,011,933 | $ | 200,509 | $ | (50,000 | ) |
A |
$ | 1,162,442 | |||||
Investment securities available for sale |
3,883,574 | 2,275,703 | — | 6,159,277 | |||||||||||
Loans and leases held for sale |
37,288 | 980 | — | 38,268 | |||||||||||
Loans, net of unearned income |
25,577,116 | 9,316,808 | (167,000 | ) |
B |
34,726,924 | |||||||||
Less: Allowance for loan losses |
(251,450 | ) |
(53,148 | ) |
53,148 | C |
(251,450 | ) |
|||||||
Net loans |
25,325,666 | 9,263,660 | (113,852 | ) |
34,475,474 | ||||||||||
Bank-owned life insurance |
551,061 | 215,421 | — | 766,482 | |||||||||||
Premises and equipment, net |
431,012 | 42,645 | — | 473,657 | |||||||||||
Goodwill |
57,315 | 139,529 | 209,051 | D |
405,895 | ||||||||||
Other intangible assets |
10,166 | 7,213 | 104,787 | E |
122,166 | ||||||||||
Other real estate owned |
8,542 | 10,534 | — | 19,076 | |||||||||||
Other assets |
758,563 | 277,162 | 5,000 | F |
1,040,725 | ||||||||||
Total assets |
$ | 32,075,120 | $ | 12,433,356 | $ | 154,986 | $ | 44,663,462 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||||||||||
Savings and money market deposit accounts |
$ | 9,102,263 | $ | 2,607,093 | $ | — | $ | 11,709,356 | |||||||
Interest-bearing demand deposits |
4,744,841 | 1,618,085 | — | 6,362,926 | |||||||||||
Noninterest-bearing deposits |
7,628,736 | 1,577,741 | — | 9,206,477 | |||||||||||
Certificates of deposit |
4,957,818 | 4,353,196 | 33,000 | G |
9,344,014 | ||||||||||
Total deposits |
26,433,658 | 10,156,115 | 33,000 | 36,622,773 | |||||||||||
Federal funds purchased and securities sold under repurchase agreements |
191,145 | 75,558 | — | 266,703 | |||||||||||
Other short-term borrowings |
478,540 | 150,000 | — | 628,540 | |||||||||||
Long-term debt |
1,656,909 | 600,000 | (11,000 | ) |
H |
2,245,909 | |||||||||
Other liabilities |
274,795 | 74,197 | — | 348,992 | |||||||||||
Total liabilities |
29,035,047 | 11,055,870 | 22,000 | 40,112,917 | |||||||||||
Preferred stock |
195,138 | — | — | 195,138 | |||||||||||
Common stock |
143,093 | 50 | 49,517 | I |
192,660 | ||||||||||
Additional paid-in capital |
3,049,233 | 1,040,358 | 470,547 | J |
4,560,138 | ||||||||||
Retained earnings |
770,807 | 439,233 | (489,233 | ) |
K |
720,807 | |||||||||
Accumulated other comprehensive income/(loss) |
(143,720 | ) |
(24,782 | ) |
24,782 | L |
(143,720 | ) |
|||||||
Treasury Stock |
(974,478 | ) |
(77,373 | ) |
77,373 | L |
(974,478 | ) |
|||||||
Stockholders’ equity |
3,040,073 | 1,377,486 | 132,986 | 4,550,545 | |||||||||||
Total liabilities and stockholders’ equity |
$ | 32,075,120 | $ | 12,433,356 | $ | 154,986 | $ | 44,663,462 | |||||||
Common shares outstanding |
116,714 | 46,809 | 2,574 | M |
166,097 | ||||||||||
Book value per common share |
$ | 24.38 | $ | 29.43 | $ | 26.22 |
See accompanying notes to unaudited pro forma combined condensed consolidated financial statements.
2
SYNOVUS AND SUBSIDIARIES UNAUDITED PRO FORMA COMBINED CONDENSED
CONSOLIDATED INCOME STATEMENT FOR THE
NINE MONTHS ENDED SEPTEMBER 30, 2018
in thousands, except per share data |
Synovus As Reported |
FCB As Reported |
Pro Forma Adjustments |
Ref |
Pro Forma Combined Synovus |
||||||||
Interest income |
$ | 986,911 | $ | 360,126 | $ | 24,053 | N |
$ | 1,371,090 | ||||
Interest expense |
136,431 | 94,486 | 2,957 | O |
233,874 | ||||||||
Net interest income |
850,480 | 265,640 | 21,096 | 1,137,216 | |||||||||
Provision for loan losses |
39,548 | 5,801 | — | 45,349 | |||||||||
Net interest income after provision for loan losses |
810,932 | 259,839 | 21,096 | 1,091,867 | |||||||||
Non-interest income |
212,101 | 23,941 | — | 236,042 | |||||||||
Non-interest expense |
619,531 | 122,415 | 13,077 | P |
755,023 | ||||||||
Income before income taxes |
403,502 | 161,365 | 8,019 | 572,886 | |||||||||
Income taxes |
80,095 | 35,052 | 2,069 | Q |
117,216 | ||||||||
Net income |
$ | 323,407 | $ | 126,313 | $ | 5,950 | $ | 455,670 | |||||
Preferred stock dividends and redemption charge |
14,848 | — | — | 14,848 | |||||||||
Net income available to common shareholders |
$ | 308,559 | $ | 126,313 | $ | 5,950 | $ | 440,822 | |||||
Net income per common share, basic |
$ | 2.61 | $ | 2.73 | — | $ | 2.64 | ||||||
Net income per common share, diluted |
2.60 | 2.61 | — | 2.60 | |||||||||
Weighted average common shares outstanding, basic |
118,096 | 46,213 | 2,542 | R |
166,851 | ||||||||
Weighted average common shares outstanding, diluted |
118,847 | 48,473 | 2,666 | R |
169,986 |
See accompanying notes to unaudited pro forma combined condensed consolidated financial statements.
3
SYNOVUS AND SUBSIDIARIES UNAUDITED PRO FORMA COMBINED CONDENSED
CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017
in thousands, except per share data |
Synovus As Reported |
FCB As Reported |
Pro Forma Adjustments |
Ref |
Pro Forma Combined Synovus |
||||||||
Interest income |
$ | 1,162,497 | $ | 374,101 | $ | 22,963 | N |
$ | 1,559,561 | ||||
Interest expense |
139,188 | 78,649 | (28,487 | ) |
O |
189,350 | |||||||
Net interest income |
1,023,309 | 295,452 | 51,450 | 1,370,211 | |||||||||
Provision for loan losses |
67,185 | 9,415 | — | 76,600 | |||||||||
Net interest income after provision for loan losses |
956,124 | 286,037 | 51,450 | 1,293,611 | |||||||||
Non-interest income |
345,327 | 35,016 | — | 380,343 | |||||||||
Non-interest expense |
821,313 | 141,694 | 20,033 | P |
983,040 | ||||||||
Income before income taxes |
480,138 | 179,359 | 31,417 | 690,914 | |||||||||
Income taxes |
204,664 | 54,165 | 12,221 | Q |
271,050 | ||||||||
Net income |
$ | 275,474 | $ | 125,194 | $ | 19,196 | $ | 419,864 | |||||
Dividends on preferred stock |
10,238 | — | — | 10,238 | |||||||||
Net income available to common shareholders |
$ | 265,236 | $ | 125,194 | $ | 19,196 | $ | 409,626 | |||||
Net income per common share, basic |
$ | 2.19 | $ | 2.92 | — | $ | 2.46 | ||||||
Net income per common share, diluted |
2.17 | 2.71 | — | 2.40 | |||||||||
Weighted average common shares outstanding, basic |
121,162 | 42,887 | 2,359 | R |
166,408 | ||||||||
Weighted average common shares outstanding, diluted |
122,012 | 46,121 | 2,537 | R |
170,670 |
See accompanying notes to unaudited pro forma combined condensed consolidated financial statements.
4
The unaudited pro forma combined condensed consolidated financial information and explanatory notes have been prepared to illustrate the effects of the merger involving Synovus and FCB under the acquisition method of accounting with Synovus treated as the acquirer. The unaudited pro forma combined condensed consolidated financial information is presented for illustrative purposes only and does not necessarily indicate the financial results of the combined companies had the companies actually been combined at the beginning of each period presented, nor does it necessarily indicate the results of operations in future periods or the future financial position of the combined entities. Under the acquisition method of accounting, the assets and liabilities of FCB, as of the effective date of the merger, will be recorded by Synovus at their respective fair values and the excess of the merger consideration over the fair value of FCBs net assets will be allocated to goodwill.
The merger, which closed on January 1, 2019, provides for FCB Class A common stockholders to receive 1.055 shares of Synovus common stock for each share of FCB Class A common stock they hold immediately prior to the merger (except for specified shares of FCB Class A common stock owned by FCB or Synovus, which will be cancelled). Based on the average closing sale price of Synovus common stock on the NYSE, for the five full trading days before public announcement of the merger, the value of the per share merger consideration payable to holders of FCB Class A common stock would be $31.47.
Note 2—Preliminary Purchase Price Allocation
The pro forma adjustments include the estimated accounting entries to record the merger transaction under the acquisition method of accounting for business combinations. The excess of the purchase price over the fair value of net assets acquired, net of deferred taxes, is allocated to goodwill. Estimated fair value adjustments included in the pro forma financial statements are based upon available information and certain assumptions considered reasonable, and may be revised as additional information becomes available.
A core deposit intangible asset of $112.0 million is included in the pro forma adjustments separate from goodwill and amortized using the sum-of-the-years-digits method over ten years. When the actual amortization is recorded for periods following the merger closing, the straight line or sum-of-the-years-digits method will be used. Goodwill totaling $348.6 million is included in the pro forma adjustments and is not subject to amortization.
5
The purchase price allocation is as follows:
in thousands, except per share amounts |
|||
Pro Forma Purchase Price |
|||
FCB shares outstanding at December 31, 2018(1) |
46,983 | ||
Exchange ratio |
1.055 | ||
Total Synovus common shares issued |
49,567 | ||
Synovus’ average closing share price for the five full trading days before closing date |
$ | 31.47 | |
Total equity portion of purchase price |
$ | 1,559,873 | |
Cash portion of purchase price (includes CPUs) |
$ | 599 | |
Total consideration to be paid |
$ | 1,560,472 | |
FCB Net Assets at Fair Value |
|||
Assets acquired: |
|||
Cash and cash equivalents |
$ | 200,509 | |
Investment securities available for sale |
2,275,703 | ||
Loans, net of unearned income |
9,149,808 | ||
Other intangible assets |
112,000 | ||
Other assets |
551,742 | ||
Total assets acquired |
12,289,762 | ||
Liabilities assumed: |
|||
Deposits |
10,189,115 | ||
Federal funds purchased and securities sold under repurchase agreements |
75,558 | ||
Other short-term borrowings |
150,000 | ||
Long-term debt |
589,000 | ||
Other liabilities |
74,197 | ||
Total liabilities assumed |
11,077,870 | ||
Net assets acquired |
1,211,892 | ||
Preliminary pro forma goodwill |
$ | 348,580 |
(1) | Includes FCB restricted stock awards, FCB PSU awards and Vested FCB RSU awards. |
Note 3—Pro Forma Adjustments
The following pro forma adjustments have been reflected in the unaudited pro forma combined condensed financial information. All taxable adjustments were calculated using a 25.8% tax rate to arrive at deferred tax asset or liability adjustments as of September 30, 2018. All adjustments are based on current assumptions and valuations, which are subject to change.
A. | Adjustment to cash to reflect contractually obligated after-tax merger costs of $50.0 million. |
B. | Adjustment to loans, net of unearned income of $167.0 million to reflect estimated fair value adjustments to acquired loans of $103.0 million for credit deterioration and $64.0 million for current interest rates and liquidity. |
C. | Elimination of FCB’s existing allowance for loan losses. Purchased loans in a business combination are recorded at estimated fair value on the purchase date and the carryover of the related allowance for loan losses is prohibited. |
D. | Adjustments to goodwill to eliminate FCB goodwill of $139.5 million at merger date and record estimated goodwill associated with the merger of $348.6 million. |
E. | Adjustments to other intangible assets to eliminate FCB other intangible assets of $7.2 million and record estimated core deposit intangible asset of $112.0 million. |
F. | A net deferred tax asset of approximately $5 million was recorded for the effects of the acquisition accounting adjustments. |
6
G. | Adjustment to deposits to reflect estimated fair value of acquired time deposits. |
H. | Adjustment to long-term debt to reflect estimated fair value of acquired Federal Home Loan Bank (FHLB) debt. |
I. | Adjustments to common shares to eliminate FCB Class A common stock of $0.05 million par value and record the issuance of Synovus common stock to FCB Class A stockholders of $49.6 million par value. |
J. | Adjustments to capital surplus to eliminate FCB capital surplus of $1.04 billion and record the issuance of Synovus common stock in excess of par value to FCB Class A stockholders of $1.51 billion. |
K. | Adjustment to retained earnings to reflect contractually obligated after-tax merger costs of $50.0 million and eliminate FCB retained earnings balance of $439.2 million. |
L. | Adjustments to eliminate remaining equity balances. |
M. | Adjustment to Synovus’ common stock outstanding to eliminate FCB Class A common stock outstanding and record Synovus common stock outstanding, calculated using the exchange ratio of 1.055 per share. |
N. | Net adjustments to interest income of $24.1 million for the nine months ended September 30, 2018 and $23.0 million for the year ended December 31, 2017 to eliminate FCB’s accretion of discounts on previously acquired loans and record estimated accretion of discounts on acquired loans of FCB. An estimated average life of four years was used to reflect the accretion of loan discounts. |
O. | Net adjustments to interest expense of $3.0 million for the nine months ended September 30, 2018 and $(28.5) million for the year ended December 31, 2017 to eliminate FCB’s amortization of premiums on time deposits and amortization of premiums on FHLB borrowings and record estimated amortization of premium on acquired deposits of FCB and to record estimated accretion of discounts on acquired FHLB borrowings of FCB. An estimated average life of one year was used to reflect the amortization of deposit premiums from the interest rate fair value adjustment. |
P. | Net adjustments to non-interest expense of $13.1 million for the nine months ended September 30, 2018 and $20.0 million for the year ended December 31, 2017 to eliminate FCB’s amortization expense on other intangible assets and record estimated amortization of acquired other intangible assets. |
Q. | Adjustment to income tax expense to record the income tax effect of pro forma adjustments at an estimated statutory tax rate of 25.8% for the nine months ended September 30, 2018 and 38.9% for the year ended December 31, 2017. |
R. | Adjustments to weighted-average Synovus common stock outstanding to eliminate the weighted-average FCB Class A common stock outstanding and record Synovus common stock outstanding, calculated using the exchange ratio of 1.055 per share for all shares and outstanding equity awards. |
Note 4—Estimated Cost Savings and Merger Integration Costs
Synovus expects to realize approximately $40 million, or 26% of FCBs current non-interest expense in annual pre-tax cost savings following the merger. Estimated cost savings is expected to be fully realized in fiscal year 2020 and is excluded from this pro forma analysis.
Merger- and integration-related costs are not included in the pro forma combined statements of income since they will be recorded in the combined results of income as they are incurred prior to, or after completion of, the merger and are not indicative of what the historical results of the combined company would have been had the companies been actually combined during the periods presented. Merger- and integration-related costs are estimated to be approximately $105 million pre-tax.
7
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