Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. |
Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
| ||||||||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
x | Accelerated Filer | ☐ | |||||||||||||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | |||||||||||||||||||||
Emerging Growth Company |
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 6. | |||||||||||
(in thousands except share data) | March 31, 2024 | December 31, 2023 | |||||||||
Assets | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Interest bearing cash and cash equivalents | |||||||||||
Available-for-sale debt securities | |||||||||||
Held-to-maturity debt securities | |||||||||||
Equity securities | |||||||||||
Investment securities | |||||||||||
Loans held for sale | |||||||||||
Loans held for investment, mortgage finance | |||||||||||
Loans held for investment | |||||||||||
Less: Allowance for credit losses on loans | |||||||||||
Loans held for investment, net | |||||||||||
Premises and equipment, net | |||||||||||
Accrued interest receivable and other assets | |||||||||||
Goodwill and intangibles, net | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Liabilities: | |||||||||||
Non-interest bearing deposits | $ | $ | |||||||||
Interest bearing deposits | |||||||||||
Total deposits | |||||||||||
Accrued interest payable | |||||||||||
Other liabilities | |||||||||||
Short-term borrowings | |||||||||||
Long-term debt | |||||||||||
Total liabilities | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Authorized shares - | |||||||||||
Issued shares - | |||||||||||
Common stock, $ | |||||||||||
Authorized shares - | |||||||||||
Issued shares - | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Treasury stock - | ( | ( | |||||||||
Accumulated other comprehensive loss, net of taxes | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended March 31, | ||||||||||||||
(in thousands except per share data) | 2024 | 2023 | ||||||||||||
Interest income | ||||||||||||||
Interest and fees on loans | $ | $ | ||||||||||||
Investment securities | ||||||||||||||
Interest bearing cash and cash equivalents | ||||||||||||||
Total interest income | ||||||||||||||
Interest expense | ||||||||||||||
Deposits | ||||||||||||||
Short-term borrowings | ||||||||||||||
Long-term debt | ||||||||||||||
Total interest expense | ||||||||||||||
Net interest income | ||||||||||||||
Provision for credit losses | ||||||||||||||
Net interest income after provision for credit losses | ||||||||||||||
Non-interest income | ||||||||||||||
Service charges on deposit accounts | ||||||||||||||
Wealth management and trust fee income | ||||||||||||||
Brokered loan fees | ||||||||||||||
Investment banking and advisory fees | ||||||||||||||
Trading income | ||||||||||||||
Other | ||||||||||||||
Total non-interest income | ||||||||||||||
Non-interest expense | ||||||||||||||
Salaries and benefits | ||||||||||||||
Occupancy expense | ||||||||||||||
Marketing | ||||||||||||||
Legal and professional | ||||||||||||||
Communications and technology | ||||||||||||||
Federal Deposit Insurance Corporation insurance assessment | ||||||||||||||
Other | ||||||||||||||
Total non-interest expense | ||||||||||||||
Income before income taxes | ||||||||||||||
Income tax expense | ||||||||||||||
Net income | ||||||||||||||
Preferred stock dividends | ||||||||||||||
Net income available to common stockholders | $ | $ | ||||||||||||
Other comprehensive income/(loss) | ||||||||||||||
Change in unrealized gain/(loss) | $ | ( | $ | |||||||||||
Amounts reclassified into net income | ||||||||||||||
Other comprehensive income/(loss) | ( | |||||||||||||
Income tax expense/(benefit) | ( | |||||||||||||
Other comprehensive income/(loss), net of tax | ( | |||||||||||||
Comprehensive income | $ | $ | ||||||||||||
Basic earnings per common share | $ | $ | ||||||||||||
Diluted earnings per common share | $ | $ |
Preferred Stock | Common Stock | Additional | Treasury Stock | Accumulated Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paid-in | Retained | Comprehensive | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands except share data) | Shares | Amount | Shares | Amount | Capital | Earnings | Shares | Amount | Income/(Loss) | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 (audited) | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Change in other comprehensive income/(loss), net of taxes | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense recognized in earnings | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividend | — | — | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock related to stock-based awards | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 (audited) | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Change in other comprehensive income/(loss), net of taxes | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense recognized in earnings | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividend | — | — | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock related to stock-based awards | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2024 | 2023 | |||||||||
Operating activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | |||||||||||
Provision for credit losses | |||||||||||
Depreciation and amortization | |||||||||||
Net gain recognized on investment securities | ( | ( | |||||||||
Stock-based compensation expense | |||||||||||
Proceeds from sales and repayments of loans held for sale | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accrued interest receivable and other assets | ( | ||||||||||
Accrued interest payable and other liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Investing activities | |||||||||||
Purchases of available-for-sale debt securities | ( | ( | |||||||||
Proceeds from sales of available-for-sale debt securities | |||||||||||
Proceeds from maturities, redemptions and pay-downs of available-for-sale debt securities | |||||||||||
Proceeds from maturities, redemptions and pay-downs of held-to-maturity debt securities | |||||||||||
Sales/(purchases) of equity securities, net | ( | ||||||||||
Originations of loans held for investment, mortgage finance | ( | ( | |||||||||
Proceeds from pay-offs of loans held for investment, mortgage finance | |||||||||||
Net increase in loans held for investment, excluding mortgage finance loans | ( | ( | |||||||||
Purchase of premises and equipment, net | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing activities | |||||||||||
Net increase/(decrease) in deposits | ( | ||||||||||
Issuance of stock related to stock-based awards | ( | ( | |||||||||
Preferred dividends paid | ( | ( | |||||||||
Repurchase of common stock | ( | ( | |||||||||
Net increase/(decrease) in short-term borrowings | ( | ||||||||||
Net cash provided by financing activities | |||||||||||
Net increase/(decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental disclosures of cash flow information | |||||||||||
Cash paid during the period for interest | $ | $ | |||||||||
Cash paid/(refunded) during the period for income taxes | ( | ||||||||||
Transfers of loans from held for investment to held for sale | |||||||||||
Three Months Ended March 31, | |||||||||||
(in thousands except share and per share data) | 2024 | 2023 | |||||||||
Numerator: | |||||||||||
Net income | $ | $ | |||||||||
Preferred stock dividends | |||||||||||
Net income available to common stockholders | $ | $ | |||||||||
Denominator: | |||||||||||
Basic earnings per common share—weighted average common shares | |||||||||||
Effect of dilutive outstanding stock-settled awards | |||||||||||
Dilutive earnings per common share—weighted average diluted common shares | |||||||||||
Basic earnings per common share | $ | $ | |||||||||
Diluted earnings per common share | $ | $ | |||||||||
Anti-dilutive outstanding stock-settled awards |
(in thousands) | Amortized Cost(1) | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||
Available-for-sale debt securities: | |||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | ( | $ | ||||||||||||||||||
U.S. government agency securities | ( | ||||||||||||||||||||||
Residential mortgage-backed securities | ( | ||||||||||||||||||||||
CRT securities | ( | ||||||||||||||||||||||
Total available-for-sale debt securities | ( | ||||||||||||||||||||||
Held-to-maturity debt securities: | |||||||||||||||||||||||
Residential mortgage-backed securities | ( | ||||||||||||||||||||||
Total held-to-maturity debt securities | ( | ||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Total investment securities(2) | $ | ||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Available-for-sale debt securities: | |||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | ( | $ | ||||||||||||||||||
U.S. government agency securities | ( | ||||||||||||||||||||||
Residential mortgage-backed securities | ( | ||||||||||||||||||||||
CRT securities | ( | ||||||||||||||||||||||
Total available-for-sale debt securities | ( | ||||||||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||||
Residential mortgage-backed securities | ( | ||||||||||||||||||||||
Total held-to-maturity securities | ( | ||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Total investment securities(2) | $ |
Available-for-sale | Held-to-maturity | ||||||||||||||||||||||
(in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
Due within one year | $ | $ | $ | $ | |||||||||||||||||||
Due after one year through five years | |||||||||||||||||||||||
Due after five years through ten years | |||||||||||||||||||||||
Due after ten years | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
U.S. Treasury securities | U.S. government agency securities | Residential mortgage-backed securities | CRT securities | ||||||||||||||||||||
Due within one year | % | % | % | % | |||||||||||||||||||
Due after one year through five years | |||||||||||||||||||||||
Due after five years through ten years | |||||||||||||||||||||||
Due after ten years | |||||||||||||||||||||||
Total | % | % | % | % |
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
(in thousands) | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
U.S. government agency securities | ( | ( | |||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
CRT securities | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
U.S. government agency securities | ( | ( | |||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
CRT securities | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2024 | 2023 | |||||||||
Net gains/(losses) recognized during the period | $ | $ | |||||||||
Less: Realized net gains/(losses) recognized on securities sold | ( | ||||||||||
Unrealized net gains/(losses) recognized on securities still held | $ | $ |
(in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Loans held for investment(1): | |||||||||||
Commercial | $ | $ | |||||||||
Mortgage finance | |||||||||||
Commercial real estate | |||||||||||
Consumer | |||||||||||
Gross loans held for investment | |||||||||||
Unearned income (net of direct origination costs) | ( | ( | |||||||||
Total loans held for investment | |||||||||||
Allowance for credit losses on loans | ( | ( | |||||||||
Total loans held for investment, net | $ | $ | |||||||||
Loans held for sale: | |||||||||||
Mortgage loans, at fair value | $ | $ | |||||||||
Non-mortgage loans, at lower of cost or fair value | |||||||||||
Total loans held for sale | $ | $ |
(in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 and prior | Revolving lines of credit | Revolving lines of credit converted to term loans | Total | ||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
(1-7) Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
(8) Special mention | |||||||||||||||||||||||||||||
(9) Substandard - accruing | |||||||||||||||||||||||||||||
(9+) Non-accrual | |||||||||||||||||||||||||||||
Total commercial | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Mortgage finance | |||||||||||||||||||||||||||||
(1-7) Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
(8) Special mention | |||||||||||||||||||||||||||||
(9) Substandard - accruing | |||||||||||||||||||||||||||||
(9+) Non-accrual | |||||||||||||||||||||||||||||
Total mortgage finance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
(1-7) Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
(8) Special mention | |||||||||||||||||||||||||||||
(9) Substandard - accruing | |||||||||||||||||||||||||||||
(9+) Non-accrual | |||||||||||||||||||||||||||||
Total commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
(1-7) Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
(8) Special mention | |||||||||||||||||||||||||||||
(9) Substandard - accruing | |||||||||||||||||||||||||||||
(9+) Non-accrual | |||||||||||||||||||||||||||||
Total consumer | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ |
(in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 and prior | Revolving lines of credit | Revolving lines of credit converted to term loans | Total | ||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
(1-7) Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
(8) Special mention | |||||||||||||||||||||||||||||
(9) Substandard - accruing | |||||||||||||||||||||||||||||
(9+) Non-accrual | |||||||||||||||||||||||||||||
Total commercial | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Mortgage finance | |||||||||||||||||||||||||||||
(1-7) Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
(8) Special mention | |||||||||||||||||||||||||||||
(9) Substandard - accruing | |||||||||||||||||||||||||||||
(9+) Non-accrual | |||||||||||||||||||||||||||||
Total mortgage finance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
(1-7) Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
(8) Special mention | |||||||||||||||||||||||||||||
(9) Substandard - accruing | |||||||||||||||||||||||||||||
(9+) Non-accrual | |||||||||||||||||||||||||||||
Total commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
(1-7) Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
(8) Special mention | |||||||||||||||||||||||||||||
(9) Substandard - accruing | |||||||||||||||||||||||||||||
(9+) Non-accrual | |||||||||||||||||||||||||||||
Total Consumer | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ |
(in thousands) | Commercial | Mortgage Finance | Commercial Real Estate | Consumer | Total | ||||||||||||
Three Months Ended March 31, 2024 | |||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | ||||||||||||
Provision for credit losses on loans | |||||||||||||||||
Charge-offs | |||||||||||||||||
Recoveries | |||||||||||||||||
Net charge-offs (recoveries) | |||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | ||||||||||||
Three Months Ended March 31, 2023 | |||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | ||||||||||||
Provision for credit losses on loans | ( | ( | |||||||||||||||
Charge-offs | |||||||||||||||||
Recoveries | |||||||||||||||||
Net charge-offs (recoveries) | ( | ||||||||||||||||
Ending balance | $ | $ | $ | $ | $ |
(in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Non-accrual(1) | Current | Total | Non-accrual With No Allowance | |||||||||||||||||||||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Mortgage finance | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
Financial Statement Impact | ||||||||||||||||||||||||||||||||
($ in thousands) | Payment Deferral | Term Extension | Payment Deferral and Term Extension | Interest Rate Reduction and Term Extension | Total | Percentage of Loans Held for Investment | Interest Rate Reduction | Term Extension (in months) | Payment Deferrals | |||||||||||||||||||||||
Three Months Ended March 31, 2024 | ||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | % | $ | |||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | % | ||||||||||||||||||||||||||
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | % | $ | |||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | % |
(in thousands) | Payment Deferral | Payment Deferral and Term Extension | Total | |||||||||||||||||
Three Months Ended March 31, 2024 | ||||||||||||||||||||
Commercial | $ | $ | $ | |||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||
(in thousands) | 30-89 Days Past Due | 90+ Days Past Due | Non-Accrual | Current | Total | |||||||||||||||||||||||||||
March 31, 2024 | ||||||||||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
(in thousands) | March 31, 2024 | December 31, 2023 | ||||||||||||
Federal Home Loan Bank borrowings | ||||||||||||||
Total short-term borrowings | $ | $ |
(in thousands) | March 31, 2024 | December 31, 2023 | ||||||||||||
Bank-issued floating rate senior unsecured credit-linked notes due 2024 | $ | $ | ||||||||||||
Bank-issued | ||||||||||||||
Company-issued | ||||||||||||||
Trust preferred floating rate subordinated debentures due 2032 to 2036 | ||||||||||||||
Total long-term debt | $ | $ |
(in thousands) | Commercial | Mortgage Finance | Commercial Real Estate | Consumer | Total | ||||||||||||||||||||||||
Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Provision for off-balance sheet credit losses | ( | ( | ( | ( | |||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Provision for off-balance sheet credit losses | ( | ||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
(in thousands) | March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||
Commitments to extend credit - period end balance | $ | $ | |||||||||||||||||||||||||||
Standby letters of credit - period end balance |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||
(dollars in thousands) | Minimum Capital Required(2) | Capital Required to be Well Capitalized | Capital Amount | Ratio | Capital Amount | Ratio | |||||||||||||||||||||||
The Company | |||||||||||||||||||||||||||||
CET1 capital (to risk-weighted assets) | % | N/A | $ | % | $ | % | |||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | % | % | % | % | |||||||||||||||||||||||||
Total capital (to risk-weighted assets) | % | % | % | % | |||||||||||||||||||||||||
Tier 1 capital (to average assets)(1) | % | N/A | % | % | |||||||||||||||||||||||||
The Bank | |||||||||||||||||||||||||||||
CET1 capital (to risk-weighted assets) | % | % | % | % | |||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | % | % | % | % | |||||||||||||||||||||||||
Total capital (to risk-weighted assets) | % | % | % | % | |||||||||||||||||||||||||
Tier 1 capital (to average assets)(1) | % | % | % | % |
Three Months Ended March 31, | ||||||||||||||
(in thousands) | 2024 | 2023 | ||||||||||||
Stock-settled awards: | ||||||||||||||
RSUs | $ | $ | ||||||||||||
Cash-settled units | ||||||||||||||
Total | $ | $ |
(in thousands except period data) | March 31, 2024 | ||||
Unrecognized compensation expense related to unvested stock-settled awards | $ | ||||
Weighted average period over which expense is expected to be recognized, in years |
Fair Value Measurements Using | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||
March 31, 2024 | |||||||||||||||||
Available-for-sale debt securities:(1) | |||||||||||||||||
U.S. Treasury securities | $ | $ | $ | ||||||||||||||
U.S. government agency securities | |||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||
CRT securities | |||||||||||||||||
Equity securities(1)(2) | |||||||||||||||||
Mortgage loans held for sale(3) | |||||||||||||||||
Loans held for investment(4) | |||||||||||||||||
Derivative assets(5) | |||||||||||||||||
Securities sold not yet purchased(6) | |||||||||||||||||
Derivative liabilities(5) | |||||||||||||||||
Non-qualified deferred compensation plan liabilities(7) | |||||||||||||||||
December 31, 2023 | |||||||||||||||||
Available-for-sale debt securities:(1) | |||||||||||||||||
U.S. Treasury securities | $ | $ | $ | ||||||||||||||
U.S. government agency securities | |||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||
CRT securities | |||||||||||||||||
Equity securities(1)(2) | |||||||||||||||||
Mortgage loans held for sale(3) | |||||||||||||||||
Loans held for investment(4) | |||||||||||||||||
Derivative assets(5) | |||||||||||||||||
Securities sold not yet purchased(6) | |||||||||||||||||
Derivative liabilities(5) | |||||||||||||||||
Non-qualified deferred compensation plan liabilities(7) |
Net Gains/(Losses) | |||||||||||||||||||||||||||||||||||
(in thousands) | Balance at Beginning of Period | Purchases / Additions | Sales / Reductions | Realized | Unrealized | Balance at End of Period | |||||||||||||||||||||||||||||
Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||||||||
Available-for-sale debt securities:(1) | |||||||||||||||||||||||||||||||||||
CRT securities | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||
Available-for-sale debt securities:(1) | |||||||||||||||||||||||||||||||||||
CRT securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | ||||||||||||||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
March 31, 2024 | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Available-for-sale debt securities | |||||||||||||||||||||||||||||
Held-to-maturity debt securities | |||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||||||||
Loans held for investment, net | |||||||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Total deposits | |||||||||||||||||||||||||||||
Short-term borrowings | |||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||
Securities sold not yet purchased | |||||||||||||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Available-for-sale debt securities | |||||||||||||||||||||||||||||
Held-to-maturity debt securities | |||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||||||||
Loans held for investment, net | |||||||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Total deposits | |||||||||||||||||||||||||||||
Short-term borrowings | |||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||
Securities sold not yet purchased | |||||||||||||||||||||||||||||
Derivative liabilities |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||
Estimated Fair Value | Estimated Fair Value | ||||||||||||||||||||||||||||
(in thousands) | Notional Amount | Notional Amount | |||||||||||||||||||||||||||
Derivatives designated as hedges | |||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||||
Swaps hedging loans | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Non-hedging derivatives | |||||||||||||||||||||||||||||
Customer-initiated and other derivatives: | |||||||||||||||||||||||||||||
Foreign currency forward contracts | |||||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||||
Swaps | |||||||||||||||||||||||||||||
Caps and floors written | |||||||||||||||||||||||||||||
Caps and floors purchased | |||||||||||||||||||||||||||||
Forward contracts | |||||||||||||||||||||||||||||
Gross derivatives | |||||||||||||||||||||||||||||
Netting adjustment - offsetting derivative assets/liabilities | ( | ( | ( | ( | |||||||||||||||||||||||||
Netting adjustment - cash collateral received/posted | ( | ( | ( | ( | |||||||||||||||||||||||||
Net derivatives included on the consolidated balance sheets | $ | $ | $ | $ |
(in thousands) | Cash Flow Hedges | Available-for-Sale Securities | Held-to-Maturity Securities | Total | |||||||||||||||||||
Three Months Ended March 31, 2024 | |||||||||||||||||||||||
Beginning balance | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Change in unrealized gain/(loss) | ( | ( | ( | ||||||||||||||||||||
Amounts reclassified into net income | |||||||||||||||||||||||
Total other comprehensive income/(loss) | ( | ( | ( | ||||||||||||||||||||
Income tax expense/(benefit) | ( | ( | ( | ||||||||||||||||||||
Total other comprehensive income/(loss), net of tax | ( | ( | ( | ||||||||||||||||||||
Ending balance | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Three Months Ended March 31, 2023 | |||||||||||||||||||||||
Beginning balance | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Change in unrealized gain/(loss) | |||||||||||||||||||||||
Amounts reclassified into net income | |||||||||||||||||||||||
Total other comprehensive income/(loss) | |||||||||||||||||||||||
Income tax expense/(benefit) | |||||||||||||||||||||||
Total other comprehensive income/(loss), net of tax | |||||||||||||||||||||||
Ending balance | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended March 31, | ||||||||||||||
(dollars in thousands except per share data) | 2024 | 2023 | ||||||||||||
Net interest income | $ | 215,009 | $ | 235,345 | ||||||||||
Provision for credit losses | 19,000 | 28,000 | ||||||||||||
Non-interest income | 41,319 | 37,403 | ||||||||||||
Non-interest expense | 202,393 | 194,027 | ||||||||||||
Income before income taxes | 34,935 | 50,721 | ||||||||||||
Income tax expense | 8,793 | 12,060 | ||||||||||||
Net income | 26,142 | 38,661 | ||||||||||||
Preferred stock dividends | 4,313 | 4,313 | ||||||||||||
Net income available to common stockholders | $ | 21,829 | $ | 34,348 | ||||||||||
Basic earnings per common share | $ | 0.46 | $ | 0.71 | ||||||||||
Diluted earnings per common share | $ | 0.46 | $ | 0.70 | ||||||||||
Net interest margin | 3.03 | % | 3.33 | % | ||||||||||
Return on average assets (“ROA”) | 0.36 | % | 0.53 | % | ||||||||||
Return on average common equity (“ROE”) | 3.03 | % | 5.06 | % | ||||||||||
Efficiency ratio(1) | 79.0 | % | 71.1 | % | ||||||||||
Non-interest income to average earning assets | 0.59 | % | 0.54 | % | ||||||||||
Non-interest expense to average earning assets | 2.89 | % | 2.78 | % |
Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | ||||||||||||||||||||||
(dollars in thousands) | Average Balance | Revenue / Expense | Yield / Rate | Average Balance | Revenue / Expense | Yield / Rate | |||||||||||||||||
Assets | |||||||||||||||||||||||
Investment securities(2) | $ | 4,299,368 | $ | 32,144 | 2.77 | % | $ | 4,060,456 | $ | 25,292 | 2.31 | % | |||||||||||
Interest bearing cash and cash equivalents | 4,051,627 | 54,355 | 5.40 | % | 5,541,341 | 62,436 | 4.57 | % | |||||||||||||||
Loans held for sale | 51,164 | 1,184 | 9.31 | % | 43,472 | 938 | 8.75 | % | |||||||||||||||
Loans held for investment, mortgage finance(4) | 3,517,707 | 31,455 | 3.60 | % | 3,286,804 | 37,419 | 4.62 | % | |||||||||||||||
Loans held for investment(3)(4) | 16,522,089 | 298,306 | 7.26 | % | 15,598,854 | 259,240 | 6.74 | % | |||||||||||||||
Less: Allowance for credit losses on loans | 249,936 | — | — | 252,727 | — | — | |||||||||||||||||
Loans held for investment, net | 19,789,860 | 329,761 | 6.70 | % | 18,632,931 | 296,659 | 6.46 | % | |||||||||||||||
Total earning assets | 28,192,019 | 417,444 | 5.88 | % | 28,278,200 | 385,325 | 5.45 | % | |||||||||||||||
Cash and other assets | 1,058,463 | 1,041,745 | |||||||||||||||||||||
Total assets | $ | 29,250,482 | $ | 29,319,945 | |||||||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||
Transaction deposits | $ | 2,006,493 | $ | 16,858 | 3.38 | % | $ | 776,500 | $ | 3,853 | 2.01 | % | |||||||||||
Savings deposits | 11,409,677 | 136,790 | 4.82 | % | 11,195,402 | 105,707 | 3.83 | % | |||||||||||||||
Time deposits | 1,719,325 | 21,952 | 5.14 | % | 1,430,657 | 10,534 | 2.99 | % | |||||||||||||||
Total interest bearing deposits | 15,135,495 | 175,600 | 4.67 | % | 13,402,559 | 120,094 | 3.63 | % | |||||||||||||||
Short-term borrowings | 912,088 | 12,783 | 5.64 | % | 1,242,881 | 14,744 | 4.81 | % | |||||||||||||||
Long-term debt | 859,509 | 13,986 | 6.54 | % | 931,796 | 14,983 | 6.52 | % | |||||||||||||||
Total interest bearing liabilities | 16,907,092 | 202,369 | 4.81 | % | 15,577,236 | 149,821 | 3.90 | % | |||||||||||||||
Non-interest bearing deposits | 8,637,775 | 10,253,731 | |||||||||||||||||||||
Other liabilities | 509,286 | 436,621 | |||||||||||||||||||||
Stockholders’ equity | 3,196,329 | 3,052,357 | |||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 29,250,482 | $ | 29,319,945 | |||||||||||||||||||
Net interest income | $ | 215,075 | $ | 235,504 | |||||||||||||||||||
Net interest margin | 3.03 | % | 3.33 | % | |||||||||||||||||||
Three Months Ended March 31, 2024/2023 | |||||||||||||||||
Net Change | Change Due To(1) | ||||||||||||||||
(in thousands) | Volume | Yield/Rate(2) | |||||||||||||||
Interest income | |||||||||||||||||
Investment securities | $ | 6,852 | $ | 1,376 | $ | 5,476 | |||||||||||
Interest bearing cash and cash equivalents | (8,081) | (16,973) | 8,892 | ||||||||||||||
Loans held for sale | 246 | 168 | 78 | ||||||||||||||
Loans held for investment, mortgage finance | (5,964) | 2,660 | (8,624) | ||||||||||||||
Loans held for investment | 39,066 | 15,514 | 23,552 | ||||||||||||||
Total interest income | 32,119 | 2,745 | 29,374 | ||||||||||||||
Interest expense | |||||||||||||||||
Transaction deposits | 13,005 | 6,164 | 6,841 | ||||||||||||||
Savings deposits | 31,083 | 2,046 | 29,037 | ||||||||||||||
Time deposits | 11,418 | 2,152 | 9,266 | ||||||||||||||
Short-term borrowings | (1,961) | (3,967) | 2,006 | ||||||||||||||
Long-term debt | (997) | (1,175) | 178 | ||||||||||||||
Total interest expense | 52,548 | 5,220 | 47,328 | ||||||||||||||
Net interest income | $ | (20,429) | $ | (2,475) | $ | (17,954) |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2024 | 2023 | |||||||||
Service charges on deposit accounts | $ | 6,339 | $ | 5,022 | |||||||
Wealth management and trust fee income | 3,567 | 3,429 | |||||||||
Brokered loan fees | 1,911 | 1,895 | |||||||||
Investment banking and advisory fees | 18,424 | 14,564 | |||||||||
Trading income | 4,712 | 4,204 | |||||||||
Other | 6,366 | 8,289 | |||||||||
Total non-interest income | $ | 41,319 | $ | 37,403 |
Three Months Ended March 31, | |||||||||||
(in thousands) | 2024 | 2023 | |||||||||
Salaries and benefits | $ | 128,727 | $ | 128,670 | |||||||
Occupancy expense | 9,737 | 9,619 | |||||||||
Marketing | 6,036 | 9,044 | |||||||||
Legal and professional | 16,195 | 14,514 | |||||||||
Communications and technology | 21,114 | 17,523 | |||||||||
Federal Deposit Insurance Corporation (“FDIC”) insurance assessment | 8,421 | 2,170 | |||||||||
Other | 12,163 | 12,487 | |||||||||
Total non-interest expense | $ | 202,393 | $ | 194,027 |
(in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Commercial | $ | 10,383,184 | $ | 10,410,766 | |||||||
Mortgage finance | 4,153,313 | 3,978,328 | |||||||||
Commercial real estate | 5,822,461 | 5,500,774 | |||||||||
Consumer | 549,963 | 530,948 | |||||||||
Gross loans held for investment | 20,908,921 | 20,420,816 | |||||||||
Unearned income (net of direct origination costs) | (77,917) | (80,258) | |||||||||
Total loans held for investment | $ | 20,831,004 | $ | 20,340,558 | |||||||
(dollars in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Non-accrual loans held for investment | |||||||||||
Commercial: | |||||||||||
Business assets | $ | 65,325 | $ | 63,094 | |||||||
Oil and gas properties | 2,071 | 2,543 | |||||||||
Accounts receivable and inventory | 6,952 | — | |||||||||
Machinery and equipment | 3,191 | 3,332 | |||||||||
Unsecured | 1,743 | — | |||||||||
Other | 1,234 | 79 | |||||||||
Total commercial | 80,516 | 69,048 | |||||||||
Commercial real estate: | |||||||||||
Hotel/motel | 11,349 | 12,350 | |||||||||
Total commercial real estate | 11,349 | 12,350 | |||||||||
Consumer | |||||||||||
Single family residences | 984 | — | |||||||||
Total consumer | 984 | — | |||||||||
Total non-accrual loans held for investment | 92,849 | 81,398 | |||||||||
Non-accrual loans held for sale(1) | 9,250 | — | |||||||||
Other real estate owned (“OREO”) | — | — | |||||||||
Total non-performing assets | $ | 102,099 | $ | 81,398 | |||||||
Non-accrual loans held for investment to total loans held for investment | 0.45 | % | 0.40 | % | |||||||
Total non-performing assets to total assets | 0.35 | % | 0.29 | % | |||||||
Allowance for credit losses on loans to non-accrual loans held for investment | 2.8x | 3.1x | |||||||||
Loans held for investment past due 90 days and accruing | $ | 3,674 | $ | 19,523 | |||||||
Loans held for investment past due 90 days to total loans held for investment | 0.02 | % | 0.10 | % | |||||||
Loans held for sale past due 90 days and accruing | $ | 147 | $ | — |
March 31, 2024 | March 31, 2023 | |||||||||||||
Allowance for credit losses on loans to total loans held for investment | 1.27 | % | 1.30 | % | ||||||||||
Allowance for credit losses on loans to average total loans held for investment(1) | 1.32 | % | 1.38 | % | ||||||||||
Total allowance for credit losses to total loans held for investment | 1.46 | % | 1.41 | % | ||||||||||
Total provision for credit losses to average total loans held for investment(1)(2) | 0.38 | % | 0.60 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||
(dollars in thousands) | Net Charge-offs | Net Charge-offs to Average Loans(1) | Net Charge-offs | Net Charge-offs to Average Loans(1) | ||||||||||||||||||||||
Commercial | $ | 7,439 | 0.29 | % | $ | 19,913 | 0.79 | % | ||||||||||||||||||
Mortgage finance | — | — | % | — | — | % | ||||||||||||||||||||
Commercial real estate | 3,325 | 0.24 | % | — | — | % | ||||||||||||||||||||
Consumer | — | — | % | (3) | — | % | ||||||||||||||||||||
Total | $ | 10,764 | 0.22 | % | $ | 19,910 | 0.43 | % |
(dollars in thousands) | March 31, 2024 | December 31, 2023 | ||||||||||||
Interest bearing cash and cash equivalents | $ | 3,148,157 | $ | 3,042,357 | ||||||||||
Interest bearing cash and cash equivalents as a percent of: | ||||||||||||||
Total loans held for investment | 15.1 | % | 15.0 | % | ||||||||||
Total earning assets | 11.2 | % | 11.1 | % | ||||||||||
Total deposits | 13.1 | % | 13.6 | % |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
(dollars in thousands) | Balance | % of Total | Balance | % of Total | |||||||||||||||||||
Customer deposits | $ | 23,351,853 | 97.5 | % | $ | 21,454,568 | 95.9 | % | |||||||||||||||
Brokered deposits | 602,184 | 2.5 | % | 917,271 | 4.1 | % | |||||||||||||||||
Total deposits | $ | 23,954,037 | 100.0 | % | $ | 22,371,839 | 100.0 | % |
(in thousands) | March 31, 2024 | December 31, 2023 | ||||||||||||
Repurchase agreements | $ | — | $ | — | ||||||||||
FHLB borrowings | 750,000 | 1,500,000 | ||||||||||||
Total short-term and other borrowings | $ | 750,000 | $ | 1,500,000 | ||||||||||
(in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
FHLB borrowing capacity relating to loans and pledged securities | $ | 4,053,570 | $ | 2,602,092 | |||||||
FHLB borrowing capacity relating to unencumbered securities | 4,214,852 | 3,737,615 | |||||||||
Total FHLB borrowing capacity(1) | $ | 8,268,422 | $ | 6,339,707 | |||||||
Unused federal funds lines available from commercial banks | $ | 1,158,000 | $ | 1,188,000 | |||||||
Unused Federal Reserve borrowings capacity | $ | 4,309,048 | $ | 4,094,801 | |||||||
Unused revolving line of credit(2) | $ | 75,000 | $ | 100,000 |
(in thousands) | 0-3 months | 4-12 months | 1-3 years | 3+ years | Total | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Interest bearing cash and cash equivalents | $ | 3,148,157 | $ | — | $ | — | $ | — | $ | 3,148,157 | |||||||||||||||||||
Investment securities(1) | 86,071 | 874 | 385,553 | 3,941,782 | 4,414,280 | ||||||||||||||||||||||||
Variable loans | 19,253,845 | 190,265 | 112,835 | 284,467 | 19,841,412 | ||||||||||||||||||||||||
Fixed loans | 27,903 | 93,248 | 186,062 | 798,046 | 1,105,259 | ||||||||||||||||||||||||
Total loans(2) | 19,281,748 | 283,513 | 298,897 | 1,082,513 | 20,946,671 | ||||||||||||||||||||||||
Total interest sensitive assets | $ | 22,515,976 | $ | 284,387 | $ | 684,450 | $ | 5,024,295 | $ | 28,509,108 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Interest bearing customer deposits | $ | 13,783,234 | $ | — | $ | — | $ | — | $ | 13,783,234 | |||||||||||||||||||
CDs | 681,487 | 999,888 | 10,930 | 283 | 1,692,588 | ||||||||||||||||||||||||
Total interest bearing deposits | 14,464,721 | 999,888 | 10,930 | 283 | 15,475,822 | ||||||||||||||||||||||||
Short-term borrowings | 750,000 | — | — | — | 750,000 | ||||||||||||||||||||||||
Long-term debt | 313,406 | — | 174,522 | 371,895 | 859,823 | ||||||||||||||||||||||||
Total borrowings | 1,063,406 | — | 174,522 | 371,895 | 1,609,823 | ||||||||||||||||||||||||
Total interest sensitive liabilities | $ | 15,528,127 | $ | 999,888 | $ | 185,452 | $ | 372,178 | $ | 17,085,645 | |||||||||||||||||||
GAP | $ | 6,987,849 | $ | (715,501) | $ | 498,998 | $ | 4,652,117 | $ | — | |||||||||||||||||||
Cumulative GAP | $ | 6,987,849 | $ | 6,272,348 | $ | 6,771,346 | $ | 11,423,463 | $ | 11,423,463 | |||||||||||||||||||
Non-interest bearing deposits | 8,478,215 | ||||||||||||||||||||||||||||
Stockholders’ equity | 3,170,662 | ||||||||||||||||||||||||||||
Total | $ | 11,648,877 |
Annualized Hypothetical Change in Net Interest Income | ||||||||||||||
March 31, 2024 | March 31, 2023 | |||||||||||||
+ 200 basis points | 2.8 | % | 6.7 | % | ||||||||||
+ 100 basis points | 1.5 | % | 3.4 | % | ||||||||||
- 100 basis points | (4.5) | % | (4.6) | % | ||||||||||
- 200 basis points | (9.2) | % | (9.3) | % |
Total Number of | Approximate Dollar Value | |||||||||||||||||||||||||
Shares Purchased as Part | of Shares That May Yet | |||||||||||||||||||||||||
Total Number of | Average Price Paid | of Publicly Announced | Be Purchased Under the | |||||||||||||||||||||||
Shares Purchased | per Share | Plans or Programs(1) | Plans or Programs(1) | |||||||||||||||||||||||
January 2024 | — | $ | — | — | $ | 150,000,000 | ||||||||||||||||||||
February 2024 | 112,215 | 58.23 | 112,215 | 143,466,072 | ||||||||||||||||||||||
March 2024 | 417,123 | 59.55 | 417,123 | 118,624,951 | ||||||||||||||||||||||
Total | 529,338 | $ | 59.27 | 529,338 | $ | 118,624,951 |
10.1 | |||||
10.2 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
101.SCH | XBRL Taxonomy Extension Schema Document* | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document* | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document* | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document* | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document* | ||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
/s/ J. Matthew Scurlock | ||
J. Matthew Scurlock | ||
Chief Financial Officer | ||
(Duly authorized officer and principal financial officer) |
Vesting Date | Awarded Units that Become Vested Units on such Date | ||||
The one-year anniversary of the Date of Grant | 33.3% | ||||
The second-year anniversary of the Date of Grant | An additional 33.3% | ||||
The third-year anniversary of the Date of Grant | An additional 33.4% |
ROTCE | Payout % | ||||
[] | 200% | ||||
[] | 100% - 199.9% | ||||
[] | 50% - 99.9% | ||||
[] | 0% |
Rank within Peer Group Based on Relative TSR | % Vested and Payout | ||||
[] | 200% | ||||
[] | 100%-199.9% | ||||
[] | 50%-99.9% | ||||
[] | 0% |
Date: April 18, 2024 | ||
/S/ Rob C. Holmes | ||
Rob C. Holmes | ||
President and Chief Executive Officer |
Date: April 18, 2024 | ||
/S/ J. Matthew Scurlock | ||
J. Matthew Scurlock | ||
Chief Financial Officer |
/S/ Rob C. Holmes | ||
Rob C. Holmes | ||
President and Chief Executive Officer | ||
Date: April 18, 2024 |
/S/ J. Matthew Scurlock | ||
J. Matthew Scurlock | ||
Chief Financial Officer | ||
Date: April 18, 2024 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) |
Mar. 31, 2024 |
Dec. 31, 2023 |
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Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, Liquidation value | $ 1,000 | $ 1,000 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 300,000 | 300,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 51,420,680 | 51,142,979 |
Treasury stock, shares | 4,434,405 | 3,905,067 |
Operations and Summary of Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations and Summary of Significant Accounting Policies | Operations and Summary of Significant Accounting Policies Organization and Nature of Business Texas Capital Bancshares, Inc. (“TCBI” or the “Company”), a Delaware corporation, was incorporated in 1996 and commenced banking operations in 1998. The consolidated financial statements include the accounts of TCBI and its wholly owned subsidiary, Texas Capital Bank (the “Bank”), a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. The Company is headquartered in Dallas, with primary banking offices in Austin, Dallas, Fort Worth, Houston and San Antonio, and has built a network of clients across the country. Basis of Presentation The Company’s accounting and reporting policies conform to accounting principles generally accepted in the United States (“GAAP”) and to generally accepted practices within the banking industry. Certain prior period balances have been reclassified to conform to the current period presentation. The consolidated interim financial statements are unaudited, and certain information and disclosures in the notes to consolidated unaudited financial statements that are presented in accordance with GAAP have been condensed or omitted. In the opinion of management, the interim financial statements include all normal and recurring adjustments and the disclosures made present a fair presentation of the Company’s financial position and results of operations. The consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q adopted by the U.S. Securities and Exchange Commission (“SEC”). Accordingly, the financial statements and the notes to the consolidated unaudited financial statements required by GAAP for complete annual financial statements do not include all of the information and should be read in conjunction with the consolidated financial statements, and notes thereto, for the year ended December 31, 2023, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”). Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for credit losses, the fair value of financial instruments and the status of contingencies are particularly susceptible to significant change.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted earnings per share:
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The following is a summary of the Company’s investment securities:
(1) Excludes accrued interest receivable of $10.4 million and $9.5 million at March 31, 2024 and December 31, 2023, respectively, related to available-for-sale debt securities and $1.4 million and $1.4 million at March 31, 2024 and December 31, 2023, respectively, related to held-to-maturity debt securities that is recorded in accrued interest receivable and other assets on the consolidated balance sheets. (2) Includes available-for-sale debt securities and equity securities at estimated fair value and held-to-maturity debt securities at amortized cost. Debt Securities The Company did not sell any available-for-sale debt securities in the first quarter of 2024. In the first quarter of 2023, the Company sold U.S. Treasury securities with an amortized cost of $56.4 million and realized a gain of $489,000. The amortized cost and estimated fair value as of March 31, 2024, excluding accrued interest receivable, of available-for-sale and held-to-maturity debt securities are presented below by contractual maturity. Actual maturities may differ from contractual maturities of mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without prepayment penalties.
The table below presents the weighted average yields for the Company’s available-for-sale debt securities for the three months ended March 31, 2024. Weighted average yields are calculated based on amortized cost on a tax-exempt basis assuming a 21% tax rate, where applicable.
The following table discloses the Company’s available-for-sale debt securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months:
At March 31, 2024, the Company had 112 available-for-sale debt securities in an unrealized loss position, comprised of 10 U.S. Treasury securities, five U.S. government agency securities, 95 residential mortgage-backed securities and two CRT securities. The unrealized losses on the available-for-sale debt securities were the result of changes in market interest rates compared to the date the securities were acquired rather than the credit quality of the issuers or underlying loans. The Company does not currently intend to sell and based on current conditions it does not believe it is likely that the Company will be required to sell these available-for-sale debt securities before recovery of the amortized cost of such securities in an unrealized loss position and has therefore recorded the unrealized losses related to this portfolio in accumulated other comprehensive income/(loss), net (“AOCI”). Held-to-maturity securities consist of government guaranteed securities for which no loss is expected. At March 31, 2024 and December 31, 2023, no allowance for credit losses was established for available-for-sale or held-to-maturity debt securities. At March 31, 2024 and December 31, 2023, debt securities with carrying values of approximately $1.5 million and $1.6 million, respectively, were pledged to secure certain customer deposits. Equity Securities Equity securities consist of investments that qualify for consideration under the regulations implementing the Community Reinvestment Act and investments in exchange traded funds. The following is a summary of unrealized and realized gains/(losses) recognized on equity securities included in other non-interest income on the consolidated statements of income and other comprehensive income:
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Loans and Allowance for Credit Losses on Loans |
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Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Credit Losses on Loans | Loans and Allowance for Credit Losses on Loans Loans are summarized by portfolio segment as follows:
(1) Excludes accrued interest receivable of $114.0 million and $118.1 million at March 31, 2024 and December 31, 2023, respectively, that is recorded in accrued interest receivable and other assets on the consolidated balance sheets. The following tables summarize gross loans held for investment by year of origination and internally assigned credit grades:
The following table details activity in the allowance for credit losses on loans. As discussed in Note 1 - Operations and Summary of Significant Accounting Policies in the Company’s 2023 Form 10-K, in the second quarter of 2023, changes were made to certain estimates used in the Company’s current expected credit loss model which resulted in adjustments being made to the Company’s portfolio segments. As a result, prior period balances in the table below have been reclassified to conform to the current period presentation of portfolio segments. Allocation of a portion of the allowance to one category does not preclude its availability to absorb losses in other categories.
The Company recorded a $24.8 million provision for credit losses on loans for the three months ended March 31, 2024, compared to $27.4 million for the same period of 2023. The $24.8 million provision for credit losses on loans resulted primarily from increases in criticized and non-accrual loans, growth in loans held for investment and $10.8 million in net charge-offs recorded during the three months ended March 31, 2024. Net charge-offs of $10.8 million were recorded during the three months ended March 31, 2024, compared to net charge-offs of $19.9 million during the same period of 2023. Criticized loans totaled $859.5 million at March 31, 2024, compared to $738.2 million at December 31, 2023. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. At March 31, 2024, the Company had $47.1 million in collateral-dependent commercial loans, collateralized by business assets, $11.3 million in collateral-dependent commercial real estate loans, collateralized by real estate, and $1.0 million in collateral-dependent consumer loans, collateralized by real estate. The table below provides an age analysis of gross loans held for investment:
(1)As of March 31, 2024, $1.3 million of non-accrual loans were earning interest income on a cash basis compared to $358,000 as of December 31, 2023. Additionally, $18,000 of interest income was recognized on non-accrual loans for the three months ended March 31, 2024 compared to none for the same period in 2023, respectively. Accrued interest of $487,000 and $1.5 million was reversed during the three months ended March 31, 2024 and March 31, 2023, respectively. Modifications to Borrowers Experiencing Financial Difficulty The table below details gross loans held for investment as of March 31, 2024 and March 31, 2023 made to borrowers experiencing financial difficulty that were modified during the three months ended March 31, 2024 and March 31, 2023 by type of modification granted and the financial effect of those modifications:
The table below details loans that experienced a default during the three months ended March 31, 2024, subsequent to being granted a modification in the prior twelve months. Default is defined as movement to nonperforming status, foreclosure or charge-off, whichever occurs first.
The table below provides an age analysis of gross loans held for investment as of March 31, 2024 made to borrowers experiencing financial difficulty that were modified in the prior twelve months:
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Short-Term Borrowings and Long-Term Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Borrowings and Long-Term Debt | Short-Term Borrowings and Long-Term Debt The table below presents a summary of short-term borrowings:
The table below presents a summary of long-term debt:
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Financial Instruments with Off-Balance Sheet Risk |
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Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk | Financial Instruments with Off-Balance Sheet Risk The table below presents the Company’s financial instruments with off-balance sheet risk, as well as the activity in the allowance for off-balance sheet credit losses related to those financial instruments. As discussed in Note 1 - Operations and Summary of Significant Accounting Policies in the Company’s 2023 Form 10-K, in the second quarter of 2023, changes were made to certain estimates used in the Company’s current expected credit loss model which resulted in adjustments being made to the Company’s portfolio segments. As a result, prior period balances in the table below have been reclassified to conform to the current period presentation of portfolio segments.
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Regulatory Ratios and Capital |
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Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Ratios and Capital | Regulatory Ratios and Capital The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory (and possibly additional discretionary) actions by regulators that, if undertaken, could have a direct material adverse effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Basel III Capital Rules adopted by U.S. federal banking agencies, among other things, (i) establish the capital measure called “Common Equity Tier 1” (“CET1”), (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 Capital” instruments meeting stated requirements, (iii) requires that most deductions/adjustments to regulatory capital measures be made to CET1 and not to other components of capital and (iv) define the scope of the deductions/adjustments to the capital measures. Additionally, the Basel III Capital Rules require that the Company maintain a 2.5% capital conservation buffer comprised of CET1, with respect to each of CET1, Tier 1 and total capital to risk-weighted asset ratios. A financial institution with a conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments and stock repurchases, and certain discretionary bonus payments to executive officers. No dividends were declared or paid on the Company’s common stock during the three months ended March 31, 2024 or during 2023. On January 17, 2024, the Company’s board of directors authorized a new share repurchase program under which the Company could repurchase up to $150.0 million in shares of its outstanding common stock, which is set to expire on January 31, 2025. During the three months ended March 31, 2024, the Company repurchased 529,338 shares of its common stock for an aggregate price, including excise tax expense, of $31.5 million, at a weighted average price of $59.27 per share. In February 2019, the federal bank regulatory agencies issued a final rule (the “2019 CECL Rule”) that revised certain capital regulations to account for changes to credit loss accounting under GAAP. The 2019 CECL Rule included a transition option that allows banking organizations to phase in, over a three-year period, the day-one adverse effects of adopting the new accounting standard related to the measurement of current expected credit losses on their regulatory capital ratios (three-year transition option). In March 2020, the federal bank regulatory agencies issued an interim final rule that maintains the three-year transition option of the 2019 CECL Rule and also provides banking organizations that were required under GAAP to implement CECL before the end of 2020 the option to delay for two years an estimate of the effect of CECL on regulatory capital, relative to the incurred loss methodology's effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company adopted CECL on January 1, 2020 and has elected to utilize the five-year transition option. Because the Bank had less than $15.0 billion in total consolidated assets as of December 31, 2009, it is allowed to continue to classify the trust preferred securities, all of which were issued prior to May 19, 2010, as Tier 1 capital. At the beginning of each of the last five years of the life of the Bank-issued fixed rate subordinated notes due 2026, the amount that is eligible to be included in Tier 2 capital is reduced by 20% of the original amount of the notes (net of redemptions). In 2024, the amount of the notes that qualify as Tier 2 capital has been reduced by 80%. The table below summarizes the Company’s and the Bank’s actual and required capital ratios under the Basel III Capital Rules and other standards. As shown in the table below, the Company’s and Bank’s capital ratios exceeded the regulatory definition of well capitalized as of March 31, 2024 and December 31, 2023. The ratios presented below include the effects of the election to utilize the five-year CECL transition described above.
(1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve Board and the FDIC may require the Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. (2) Percentages represent the minimum capital ratios plus, as applicable, the fully phased-in 2.5% CET1 capital buffer under the Basel III Capital Rules.
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Stock-Based Compensation |
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Stock-Based Compensation | Stock-Based Compensation The Company has long-term incentive plans under which stock-based compensation awards are granted to employees and directors by the Company’s board of directors or its designated committee. Grants are subject to vesting requirements and may include, among other things, nonqualified stock options, stock appreciation rights, restricted stock units (“RSUs”), restricted stock and performance units, or any combination thereof. The table below summarizes the Company’s stock-based compensation expense:
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Fair Value Disclosures |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures | Fair Value Disclosures The Company determines the fair market values of its assets and liabilities measured at fair value on a recurring and nonrecurring basis using the fair value hierarchy as prescribed in Accounting Standards Codification 820, Fair Value Measurements and Disclosures. See Note 1 - Operations and Summary of Significant Accounting Policies in our 2023 Form 10-K for information regarding the fair value hierarchy and a description of the methods and significant assumptions used by the Company in estimating its fair value disclosures for financial statements. Assets and liabilities measured at fair value are as follows:
(1)Available-for-sale debt securities and equity securities are measured at fair value on a recurring basis, generally monthly. (2)Equity securities consist of investments that qualify for consideration under the regulations implementing the Community Reinvestment Act and investments in exchange traded funds. (3)Loans held for sale are measured at fair value on a recurring basis, generally monthly. (4)Includes certain collateral-dependent loans held for investment for which a specific allocation of the allowance for credit losses is based upon the fair value of the loan’s underlying collateral. These loans held for investment are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions. (5)Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly. (6)Securities sold not yet purchased are measured at fair value on a recurring basis, generally monthly. (7)Non-qualified deferred compensation plan liabilities represent the fair value of the obligation to the employee, which generally corresponds to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly. Level 3 Valuations The following table presents a reconciliation of the level 3 fair value category measured at fair value on a recurring basis:
(1)Unrealized gains/(losses) on available-for-sale debt securities are recorded in . Realized gains/(losses) are recorded in on the consolidated statements of income and other comprehensive income/(loss). CRT securities The fair value of CRT securities is based on a discounted cash flow model, which utilizes Level 3 inputs, the most significant of which were a discount rate and weighted-average life. At March 31, 2024, the discount rates utilized ranged from 5.43% to 7.99% and the weighted-average life ranged from 4.76 years to 7.42 years. On a combined amortized cost weighted-average basis a discount rate of 6.36% and a weighted-average life of 5.73 years were utilized to determine the fair value of these securities at March 31, 2024. At December 31, 2023, the combined weighted-average discount rate and weighted-average life utilized were 6.57% and 6.06 years, respectively. Loans held for investment Certain collateral-dependent loans held for investment are reported at fair value when, based upon an individual evaluation, the specific allocation of the allowance for credit losses that is deducted from the loan's amortized cost is based upon the fair value of the loan's underlying collateral. The $30.5 million fair value of loans held for investment at March 31, 2024 reported above includes impaired loans with a carrying value of $59.4 million that were reduced by specific allowance allocations totaling $28.9 million based on collateral valuations utilizing Level 3 inputs. The $38.3 million fair value of loans held for investment at December 31, 2023 reported above includes impaired loans with a carrying value of $58.3 million that were reduced by specific allowance allocations totaling $20.0 million based on collateral valuations utilizing Level 3 inputs. Fair Value of Financial Instruments A summary of the carrying amounts and estimated fair values of financial instruments is as follows:
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments The notional amounts and estimated fair values of derivative positions outstanding are presented in the following table.
The Company’s credit exposure on derivative instruments is limited to the net favorable value and interest payments by each counterparty. In some cases, collateral may be required from the counterparties involved if the net value of the derivative instruments exceeds a nominal amount. The Company’s credit exposure associated with these instruments, net of any collateral pledged, was approximately $11.6 million at March 31, 2024 and approximately $32.9 million at December 31, 2023. Collateral levels are monitored and adjusted on a regular basis for changes in the value of derivative instruments. At March 31, 2024, the Company had $109.5 million in cash collateral pledged to counterparties included in interest bearing cash and cash equivalents on the consolidated balance sheet and $58.7 million in cash collateral received from counterparties included in interest bearing deposits on the consolidated balance sheet. The comparative amounts at December 31, 2023, were $119.0 million in cash collateral pledged to counterparties and $42.3 million cash collateral received from counterparties. The Company also enters into credit risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which the Company is either a participant or a lead bank. The risk participation agreements entered into by the Company as a participant bank provide credit protection to the financial institution counterparty should the borrower fail to perform on its interest rate derivative contract with that financial institution. The Company is party to 14 risk participation agreements where it acts as a participant bank with a notional amount of $229.0 million at March 31, 2024, compared to 14 risk participation agreements with a notional amount of $230.7 million at December 31, 2023. The maximum estimated exposure to these agreements, assuming 100% default by all obligors, was approximately $6.4 million at March 31, 2024 and $4.5 million at December 31, 2023. The fair value of these exposures was insignificant to the consolidated financial statements at both March 31, 2024 and December 31, 2023. Risk participation agreements entered into by the Company as the lead bank provide credit protection should the borrower fail to perform on its interest rate derivative contract. The Company is party to 16 risk participation agreements where the Company acts as the lead bank having a notional amount of $211.3 million at March 31, 2024, compared to 15 agreements having a notional amount of $204.8 million at December 31, 2023. Derivatives Designated as Cash Flow Hedges The Company enters into interest rate derivative contracts that are designated as qualifying cash flow hedges to hedge the exposure to variability in expected future cash flows attributable to changes in a contractually specified interest rate. During the three months ended March 31, 2024, the Company recorded $27.9 million in unrealized losses to adjust its cash flow hedges to fair value, which was recorded net of tax to AOCI, and reclassified $18.0 million from AOCI as a decrease to interest income on loans. Based on current market conditions, the Company estimates that during the next 12 months, an additional $58.1 million related to active and terminated hedges will be reclassified from AOCI as a decrease to interest income. As of March 31, 2024, the maximum length of time over which forecasted transactions are hedged is 1.92 years.
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Accumulated Other Comprehensive Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table provides the change in AOCI by component:
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New Accounting Standards |
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Mar. 31, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Standards Update 2024-01 “Compensation - Stock Compensation (Topic 718) - Scope Application of Profits Interest and Similar Awards” (“ASU 2024-01”) clarifies how an entity determines whether a profits interest or similar award is within the scope of Topic 718 or is not a share-based payment arrangement and therefore within the scope of other guidance. ASU 2024-01 provides an illustrative example with multiple fact patterns and also amends certain language in the “Scope” and “Scope Exceptions” sections of Topic 718 to improve its clarity and operability without changing the guidance. Entities can apply the amendments either retrospectively to all prior periods presented in the financial statements or prospectively to profits interest and similar awards granted or modified on or after the date of adoption. If prospective application is elected, an entity must disclose the nature of and reason for the change in accounting principle. ASU 2024-01 is effective January 1, 2025, including interim periods, and is not expected to have a significant impact on our financial statements. Accounting Standards Update 2024-02 “Codification Improvements” (“ASU 2024-02”) amends the Codification to remove references to various concepts statements and impacts a variety of topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not required to understand or apply the guidance. Generally, the amendments in ASU 2024-02 are not intended to result in significant accounting changes for most entities. ASU 2024-02 is effective January 1, 2025 and is not expected to have a significant impact on our financial statements.
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Operations and Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business Texas Capital Bancshares, Inc. (“TCBI” or the “Company”), a Delaware corporation, was incorporated in 1996 and commenced banking operations in 1998. The consolidated financial statements include the accounts of TCBI and its wholly owned subsidiary, Texas Capital Bank (the “Bank”), a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. The Company is headquartered in Dallas, with primary banking offices in Austin, Dallas, Fort Worth, Houston and San Antonio, and has built a network of clients across the country.
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Basis of Presentation | Basis of Presentation The Company’s accounting and reporting policies conform to accounting principles generally accepted in the United States (“GAAP”) and to generally accepted practices within the banking industry. Certain prior period balances have been reclassified to conform to the current period presentation. The consolidated interim financial statements are unaudited, and certain information and disclosures in the notes to consolidated unaudited financial statements that are presented in accordance with GAAP have been condensed or omitted. In the opinion of management, the interim financial statements include all normal and recurring adjustments and the disclosures made present a fair presentation of the Company’s financial position and results of operations. The consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q adopted by the U.S. Securities and Exchange Commission (“SEC”). Accordingly, the financial statements and the notes to the consolidated unaudited financial statements required by GAAP for complete annual financial statements do not include all of the information and should be read in conjunction with the consolidated financial statements, and notes thereto, for the year ended December 31, 2023, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”). Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for credit losses, the fair value of financial instruments and the status of contingencies are particularly susceptible to significant change.
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New Accounting Standards | Accounting Standards Update 2024-01 “Compensation - Stock Compensation (Topic 718) - Scope Application of Profits Interest and Similar Awards” (“ASU 2024-01”) clarifies how an entity determines whether a profits interest or similar award is within the scope of Topic 718 or is not a share-based payment arrangement and therefore within the scope of other guidance. ASU 2024-01 provides an illustrative example with multiple fact patterns and also amends certain language in the “Scope” and “Scope Exceptions” sections of Topic 718 to improve its clarity and operability without changing the guidance. Entities can apply the amendments either retrospectively to all prior periods presented in the financial statements or prospectively to profits interest and similar awards granted or modified on or after the date of adoption. If prospective application is elected, an entity must disclose the nature of and reason for the change in accounting principle. ASU 2024-01 is effective January 1, 2025, including interim periods, and is not expected to have a significant impact on our financial statements. Accounting Standards Update 2024-02 “Codification Improvements” (“ASU 2024-02”) amends the Codification to remove references to various concepts statements and impacts a variety of topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not required to understand or apply the guidance. Generally, the amendments in ASU 2024-02 are not intended to result in significant accounting changes for most entities. ASU 2024-02 is effective January 1, 2025 and is not expected to have a significant impact on our financial statements.
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of computation of basic and diluted earnings per share | The following table presents the computation of basic and diluted earnings per share:
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Investment Securities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Available-for-Sale Debt Securities | The following is a summary of the Company’s investment securities:
(1) Excludes accrued interest receivable of $10.4 million and $9.5 million at March 31, 2024 and December 31, 2023, respectively, related to available-for-sale debt securities and $1.4 million and $1.4 million at March 31, 2024 and December 31, 2023, respectively, related to held-to-maturity debt securities that is recorded in accrued interest receivable and other assets on the consolidated balance sheets. (2) Includes available-for-sale debt securities and equity securities at estimated fair value and held-to-maturity debt securities at amortized cost.
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Summary of Amortized Cost, Estimated Fair Value, and Weighted Average Yields for Available-for-Sale Debt Securities | The amortized cost and estimated fair value as of March 31, 2024, excluding accrued interest receivable, of available-for-sale and held-to-maturity debt securities are presented below by contractual maturity. Actual maturities may differ from contractual maturities of mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without prepayment penalties.
The table below presents the weighted average yields for the Company’s available-for-sale debt securities for the three months ended March 31, 2024. Weighted average yields are calculated based on amortized cost on a tax-exempt basis assuming a 21% tax rate, where applicable.
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Schedule of Available-for-Sale Debt Securities in a Continuous Unrealized Loss Position | The following table discloses the Company’s available-for-sale debt securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months:
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Summary of Unrealized and Realized Gains/(Losses) Recognized in Net Income on Equity Securities | The following is a summary of unrealized and realized gains/(losses) recognized on equity securities included in other non-interest income on the consolidated statements of income and other comprehensive income:
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Loans and Allowance for Credit Losses on Loans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans held for investments | Loans are summarized by portfolio segment as follows:
(1) Excludes accrued interest receivable of $114.0 million and $118.1 million at March 31, 2024 and December 31, 2023, respectively, that is recorded in accrued interest receivable and other assets on the consolidated balance sheets.
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Schedule of the credit risk profile of loan portfolio by internally assigned grades and nonaccrual status | The following tables summarize gross loans held for investment by year of origination and internally assigned credit grades:
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Schedule of activity in the reserve for loan losses by portfolio segment | The following table details activity in the allowance for credit losses on loans. As discussed in Note 1 - Operations and Summary of Significant Accounting Policies in the Company’s 2023 Form 10-K, in the second quarter of 2023, changes were made to certain estimates used in the Company’s current expected credit loss model which resulted in adjustments being made to the Company’s portfolio segments. As a result, prior period balances in the table below have been reclassified to conform to the current period presentation of portfolio segments. Allocation of a portion of the allowance to one category does not preclude its availability to absorb losses in other categories.
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Schedule of an age analysis of accruing past due loans | The table below provides an age analysis of gross loans held for investment:
(1)As of March 31, 2024, $1.3 million of non-accrual loans were earning interest income on a cash basis compared to $358,000 as of December 31, 2023. Additionally, $18,000 of interest income was recognized on non-accrual loans for the three months ended March 31, 2024 compared to none for the same period in 2023, respectively. Accrued interest of $487,000 and $1.5 million was reversed during the three months ended March 31, 2024 and March 31, 2023, respectively.
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Summary of loan modifications | The table below details gross loans held for investment as of March 31, 2024 and March 31, 2023 made to borrowers experiencing financial difficulty that were modified during the three months ended March 31, 2024 and March 31, 2023 by type of modification granted and the financial effect of those modifications:
The table below details loans that experienced a default during the three months ended March 31, 2024, subsequent to being granted a modification in the prior twelve months. Default is defined as movement to nonperforming status, foreclosure or charge-off, whichever occurs first.
The table below provides an age analysis of gross loans held for investment as of March 31, 2024 made to borrowers experiencing financial difficulty that were modified in the prior twelve months:
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Short-Term Borrowings and Long-Term Debt (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of short-term borrowings | The table below presents a summary of short-term borrowings:
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Summary of long-term debt | The table below presents a summary of long-term debt:
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Financial Instruments with Off-Balance Sheet Risk (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial instruments with off-balance sheet risk | The table below presents the Company’s financial instruments with off-balance sheet risk, as well as the activity in the allowance for off-balance sheet credit losses related to those financial instruments. As discussed in Note 1 - Operations and Summary of Significant Accounting Policies in the Company’s 2023 Form 10-K, in the second quarter of 2023, changes were made to certain estimates used in the Company’s current expected credit loss model which resulted in adjustments being made to the Company’s portfolio segments. As a result, prior period balances in the table below have been reclassified to conform to the current period presentation of portfolio segments.
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Regulatory Ratios and Capital (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of compliance with Regulatory Capital Requirements | The table below summarizes the Company’s and the Bank’s actual and required capital ratios under the Basel III Capital Rules and other standards. As shown in the table below, the Company’s and Bank’s capital ratios exceeded the regulatory definition of well capitalized as of March 31, 2024 and December 31, 2023. The ratios presented below include the effects of the election to utilize the five-year CECL transition described above.
(1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve Board and the FDIC may require the Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. (2) Percentages represent the minimum capital ratios plus, as applicable, the fully phased-in 2.5% CET1 capital buffer under the Basel III Capital Rules.
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Stock-Based Compensation (Tables) |
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation Related Costs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock-based compensation costs | The table below summarizes the Company’s stock-based compensation expense:
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Schedule of unrecognized compensation costs |
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Fair Value Disclosures (Tables) |
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value | Assets and liabilities measured at fair value are as follows:
(1)Available-for-sale debt securities and equity securities are measured at fair value on a recurring basis, generally monthly. (2)Equity securities consist of investments that qualify for consideration under the regulations implementing the Community Reinvestment Act and investments in exchange traded funds. (3)Loans held for sale are measured at fair value on a recurring basis, generally monthly. (4)Includes certain collateral-dependent loans held for investment for which a specific allocation of the allowance for credit losses is based upon the fair value of the loan’s underlying collateral. These loans held for investment are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions. (5)Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly. (6)Securities sold not yet purchased are measured at fair value on a recurring basis, generally monthly. (7)Non-qualified deferred compensation plan liabilities represent the fair value of the obligation to the employee, which generally corresponds to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly.
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Level 3 Fair Value Assets Measured on a Recurring Basis | The following table presents a reconciliation of the level 3 fair value category measured at fair value on a recurring basis:
(1)Unrealized gains/(losses) on available-for-sale debt securities are recorded in . Realized gains/(losses) are recorded in on the consolidated statements of income and other comprehensive income/(loss).
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Summary of the carrying amounts and estimated fair values of financial instruments | A summary of the carrying amounts and estimated fair values of financial instruments is as follows:
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Derivative Financial Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The notional amounts and estimated fair values of derivative positions outstanding are presented in the following table.
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Accumulated Other Comprehensive Income (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides the change in AOCI by component:
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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
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Numerator: | ||
Net income | $ 26,142 | $ 38,661 |
Preferred stock dividends | 4,313 | 4,313 |
Net income available to common stockholders | $ 21,829 | $ 34,348 |
Denominator: | ||
Basic earnings per common share—weighted average common shares | 47,278,681 | 48,264,121 |
Effect of employee stock-based awards | 432,511 | 616,604 |
Dilutive earnings per common share—weighted average diluted common shares | 47,711,192 | 48,880,725 |
Basic earnings per common share (in usd per share) | $ 0.46 | $ 0.71 |
Diluted earnings per common share (in usd per share) | $ 0.46 | $ 0.70 |
Anti-dilutive outstanding stock-settled awards | 127,145 | 252,308 |
Investment Securities - Summary of Unrealized and Realized Gains/(Losses) Recognized in Net Income on Equity Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
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Investments, Debt and Equity Securities [Abstract] | ||
Net gains/(losses) recognized during the period | $ 4,034 | $ 1,245 |
Less: Realized net gains/(losses) recognized on securities sold | (312) | 596 |
Unrealized net gains/(losses) recognized on securities still held | $ 3,722 | $ 1,841 |
Loans and Allowance for Credit Losses on Loans - Summary of Loans In Default (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Financing Receivable, Modifications [Line Items] | |
Loans subsequently defaulted | $ 4,885 |
Payment Deferral | |
Financing Receivable, Modifications [Line Items] | |
Loans subsequently defaulted | 3,129 |
Payment Deferral and Term Extension | |
Financing Receivable, Modifications [Line Items] | |
Loans subsequently defaulted | 1,756 |
Commercial | |
Financing Receivable, Modifications [Line Items] | |
Loans subsequently defaulted | 4,885 |
Commercial | Payment Deferral | |
Financing Receivable, Modifications [Line Items] | |
Loans subsequently defaulted | 3,129 |
Commercial | Payment Deferral and Term Extension | |
Financing Receivable, Modifications [Line Items] | |
Loans subsequently defaulted | $ 1,756 |
Short-Term Borrowings and Long-Term Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
May 06, 2021 |
Jan. 31, 2014 |
---|---|---|---|---|
Short-Term Debt [Line Items] | ||||
Total short-term borrowings | $ 750,000 | $ 1,500,000 | ||
Debt Instrument [Line Items] | ||||
Long-term debt | 859,823 | 859,147 | ||
FHLB Borrowings | ||||
Short-Term Debt [Line Items] | ||||
Total short-term borrowings | 750,000 | 1,500,000 | ||
Senior Unsecured Credit-Linked Notes, Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured credit-linked notes | 200,000 | 199,499 | ||
5.75% Subordinated Notes, Due 2026 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.25% | |||
Trust preferred securities issued | 174,522 | 174,457 | ||
4.00% Subordinated Notes, Due 2031 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.00% | |||
Trust preferred securities issued | 371,895 | 371,785 | ||
Floating Rate Subordinated Debentures, Due 2032 to 2036 | ||||
Debt Instrument [Line Items] | ||||
Trust preferred securities issued | $ 113,406 | $ 113,406 |
Stock-Based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-settled awards: | $ 8,534 | $ 8,438 |
Unrecognized compensation expense related to unvested stock-settled awards | $ 32,201 | |
Weighted average period over which unrecognized compensation expense is expected to be recognized (in years) | 2 years | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-settled awards: | $ 8,026 | 8,438 |
Cash-settled units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-settled awards: | $ 508 | $ 0 |
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