ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Texas | 75-1848732 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
1201 S. Beckham Avenue, Tyler, Texas | 75701 | |
(Address of Principal Executive Offices) | (Zip Code) |
Name of each exchange | ||
Title of each class | on which registered | |
COMMON STOCK, $1.25 PAR VALUE | NASDAQ Global Select Market |
Large accelerated filer ý | Accelerated filer o |
Non-accelerated filer o | Smaller reporting company o |
Emerging growth company o | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
PART I | ||
ITEM 1. BUSINESS | ||
ITEM 1A. RISK FACTORS | ||
ITEM 1B. UNRESOLVED STAFF COMMENTS | ||
ITEM 2. PROPERTIES | ||
ITEM 3. LEGAL PROCEEDINGS | ||
ITEM 4. MINE SAFETY DISCLOSURES | ||
PART II | ||
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | ||
ITEM 6. SELECTED FINANCIAL DATA | ||
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | ||
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | ||
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA | ||
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | ||
CONSOLIDATED FINANCIAL STATEMENTS | ||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE | ||
ITEM 9A. CONTROLS AND PROCEDURES | ||
ITEM 9B. OTHER INFORMATION | ||
PART III | ||
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE | ||
ITEM 11. EXECUTIVE COMPENSATION | ||
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS | ||
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE | ||
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES | ||
PART IV | ||
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES | ||
ITEM 16. FORM 10-K SUMMARY | ||
SIGNATURES |
ITEM 1. | BUSINESS |
• | Creation of the Bureau with centralized authority, including supervisory, examination and enforcement authority, for consumer protection in the banking industry; |
• | New limitations on federal preemption; |
• | New prohibitions and restrictions on the ability of a banking entity and nonbank financial company to engage in proprietary trading and have certain interests in, or relationships with, a hedge fund or private equity fund; |
• | Application of new regulatory capital requirements, including changes to leverage and risk-based capital standards and changes to the components of permissible tiered capital; |
• | Requirement that holding companies and their subsidiary banks be well capitalized and well managed in order to engage in activities permitted for financial holding companies; |
• | Impacts to accounting and reporting obligations resulting from the change to corporate income tax rates under the 2017 Tax Cuts and Jobs Act (“Tax Act”); |
• | Changes to the assessment base for deposit insurance premiums; |
• | Permanently raising the FDIC’s standard maximum deposit insurance amount to $250,000; |
• | Repeal of the prohibition on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction and other accounts; |
• | Restrictions on compensation, including a prohibition on incentive-based compensation arrangements that encourage inappropriate risk taking by covered financial institutions and are deemed to be excessive, or that may lead to material losses; |
• | Requirement that sponsors of asset-backed securities retain a percentage of the credit risk underlying the securities; and |
• | Requirement that banking regulators remove references to and requirements of reliance upon credit ratings from their regulations and replace them with appropriate alternatives for evaluating creditworthiness. |
• | banking or managing or controlling banks; |
• | furnishing services to or performing services for our subsidiaries; and |
• | any activity that the Federal Reserve determines to be so closely related to banking as to be a proper incident to the business of banking, including: |
◦ | factoring accounts receivable; |
◦ | making, acquiring, brokering or servicing loans and usual related activities; |
◦ | leasing personal or real property; |
◦ | operating a nonbank depository institution, such as a savings association; |
◦ | performing trust company functions; |
◦ | conducting financial and investment advisory activities; |
◦ | conducting discount securities brokerage activities; |
◦ | underwriting and dealing in government obligations and money market instruments; |
◦ | providing specified management consulting and counseling activities; |
◦ | performing selected data processing services and support services; |
◦ | acting as agent or broker in selling credit life insurance and other types of insurance in connection with credit transactions; |
◦ | performing selected insurance underwriting activities; |
◦ | providing certain community development activities (such as making investments in projects designed primarily to promote community welfare); and |
◦ | issuing and selling money orders and similar consumer-type payment instruments. |
Capital Adequacy Ratios | |||||||||||
Regulatory Minimums | Regulatory Minimums to be Well Capitalized | Southside Bancshares, Inc. | Southside Bank | ||||||||
Common Equity Tier 1 risk-based capital ratio | 4.50 | % | 6.50 | % | 14.77 | % | 18.59 | % | |||
Tier 1 risk-based capital ratio | 6.00 | % | 8.00 | % | 16.29 | % | 18.59 | % | |||
Total risk-based capital ratio | 8.00 | % | 10.00 | % | 19.59 | % | 19.34 | % | |||
Leverage ratio | 4.00 | % | 5.00 | % | 10.64 | % | 12.14 | % |
• | Well Capitalized - The insured depository institution exceeds the required minimum level for each relevant capital measure. Under the 2015 Capital Rules, a well-capitalized insured depository institution is one (1) having a total risk-based capital ratio of 10 percent or greater, (2) having a Tier 1 risk-based capital ratio of 8 percent or greater, (3) having a CET1 capital ratio of 6.5 percent or greater, (4) having a leverage capital ratio of 5 percent or greater and (5) that is not subject to any order or written directive to meet and maintain a specific capital level for any capital measure. |
• | Adequately Capitalized - The insured depository institution meets the required minimum level for each relevant capital measure. Under the 2015 Capital Rules, an adequately-capitalized depository institution is one having (1) a total risk based capital ratio of 8 percent or more, (2) a Tier 1 capital ratio of 6 percent or more, (3) a CET1 capital ratio of 4.5 percent or more and (4) a leverage ratio of 4 percent or more. |
• | Undercapitalized - The insured depository institution fails to meet the required minimum level for any relevant capital measure. Under the 2015 Capital Rules, an undercapitalized depository institution is one having (1) a total capital ratio of less than 8 percent, (2) a Tier 1 capital ratio of less than 6 percent, (3) a CET1 capital ratio of less than 4.5 percent or (4) a leverage ratio of less than 4 percent. |
• | Significantly Undercapitalized - The insured depository institution is significantly below the required minimum level for any relevant capital measure. Under the 2015 Capital Rules, a significantly undercapitalized institution is one having (1) a total risk-based capital ratio of less than 6 percent (2) a Tier 1 capital ratio of less than 4 percent, (3) a CET1 ratio of less than 3 percent or (4) a leverage capital ratio of less than 3 percent. |
• | Critically Undercapitalized - The insured depository institution fails to meet a critical capital level set by the appropriate federal banking agency. A critically undercapitalized institution is one having a ratio of tangible equity to total assets that is equal to or less than 2 percent. |
• | the Truth In Lending Act and Regulation Z, governing disclosures of credit terms to consumer borrowers; |
• | the Home Mortgage Disclosure Act and Regulation C, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves; |
• | the Equal Credit Opportunity Act and Regulation B, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit; |
• | the Fair Credit Reporting Act and Regulation V, governing the use and provision of information to consumer reporting agencies; |
• | the Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies; and |
• | the guidance of the various federal agencies charged with the responsibility of implementing such federal laws. |
• | the Truth in Savings Act and Regulation DD, governing disclosure of deposit account terms to consumers; |
• | the Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; and |
• | the Electronic Fund Transfer Act and Regulation E, which governs automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of ATMs and other electronic banking services, which the Bureau has expanded to include a new compliance regime that governs consumer-initiated cross border electronic transfers. |
• | total reported loans for construction, land development and other land represent 100 percent or more of the institution’s total capital, or |
• | total commercial real estate loans represent 300 percent or more of the institution’s total capital and the outstanding balance of the institution’s commercial real estate loan portfolio has increased by 50 percent or more during the prior 36 months. |
• | establishment of anti-money laundering programs, including adoption of written procedures and an ongoing employee training program, designation of a compliance officer and auditing of the program; |
• | establishment of a program specifying procedures for obtaining information from customers seeking to open new accounts, including verifying the identity of customers within a reasonable period of time; |
• | establishment of enhanced due diligence policies, procedures and controls designed to detect and report money laundering, for financial institutions that administer, maintain or manage private bank accounts or correspondent accounts for non-U.S. persons; |
• | prohibitions on correspondent accounts for foreign shell banks and compliance with recordkeeping obligations with respect to correspondent accounts of foreign banks; |
• | filing of suspicious activities reports if a bank believes a customer may be violating U.S. laws and regulations; and |
• | requirements that bank regulators consider bank holding company or bank compliance in connection with merger or acquisition transactions. |
• | our ability to originate loans and obtain deposits; |
• | our ability to retain deposits in a rising rate environment; |
• | net interest rate spreads and net interest rate margins; |
• | our ability to enter into instruments to hedge against interest rate risk; |
• | the fair value of our financial assets and liabilities; and |
• | the average duration of our loan and mortgage-backed securities portfolio. |
• | increases in loan delinquencies; |
• | increases in nonperforming assets and foreclosures; |
• | decreases in demand for our products and services, which could adversely affect our liquidity position; |
• | decreases in the value of the collateral securing our loans, especially real estate, which could reduce customers’ borrowing power; |
• | decreases in the credit quality of our non-U.S. Government and non-U.S. agency investment securities, corporate and municipal securities; |
• | an adverse or unfavorable resolution of the Fannie Mae or Freddie Mac receivership; and |
• | decreases in the real estate values subject to ad-valorem taxes by municipalities that impact such municipalities’ ability to repay their debt, which could adversely affect our municipal loans or debt securities. |
• | the ability to develop, maintain and build upon long-term customer relationships based on top quality service, high ethical standards and safe, sound assets; |
• | the ability to expand our market position; |
• | the scope, relevance and pricing of products and services offered to meet customer needs and demands; |
• | the rate at which we introduce new products and services relative to our competitors; |
• | our ability to invest in or partner with technology providers offering banking solutions and delivery channels at a level equal to our competitors; |
• | customer satisfaction with our level of service; and |
• | industry and general economic trends. |
• | actual or anticipated variations in our results of operations, financial conditions or asset quality; |
• | recommendations by securities analysts; |
• | operating and stock price performance of other companies that investors deem comparable to us; |
• | news reports relating to trends, concerns and other issues in the financial services industry; |
• | perceptions in the marketplace regarding us and/or our competitors; |
• | perceptions in the marketplace regarding the impact of the change in price per barrel of crude oil on the Texas economy; |
• | new technology used or services offered by competitors; |
• | significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving us or our competitors; |
• | failure to integrate acquisitions or realize anticipated benefits from acquisitions; |
• | future issuances of our common stock or other securities; |
• | additions or departures of key personnel; |
• | changes in government regulations; and |
• | geopolitical conditions such as acts or threats of terrorism or military conflicts. |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan | Maximum Number of Shares That May Yet Be Purchased Under the Plan at the End of the Period | |||||||||
October 25, 2018 | — | $ | — | — | 1,500,000 | ||||||||
October 26, 2018-October 31, 2018 | 56,592 | 31.52 | 56,592 | 1,443,408 | |||||||||
November 1, 2018-November 30, 2018 | 894,021 | 32.74 | 894,021 | 549,387 | |||||||||
December 1, 2018-December 31, 2018 | 508,535 | 31.74 | 508,535 | 40,852 | |||||||||
Total | 1,459,148 | $ | 32.34 | 1,459,148 |
Period Ending | ||||||||||||
Index | 12/31/13 | 12/31/14 | 12/31/15 | 12/31/16 | 12/31/17 | 12/31/18 | ||||||
Southside Bancshares, Inc. | 100.00 | 114.65 | 103.65 | 176.59 | 167.13 | 163.16 | ||||||
Russell 2000 | 100.00 | 104.89 | 100.26 | 121.63 | 139.44 | 124.09 | ||||||
SBSI Peer Group Index* | 100.00 | 90.7 | 83.64 | 131.80 | 136.13 | 116.61 | ||||||
*Peer group index includes Cullen/Frost Bankers, Inc.(CFR), First Financial Bankshares, Inc.(FFIN), Hilltop Holdings (HTH), Independent Bank Group, Inc. (IBTX), LegacyTexas Financial Group, Inc. (LTXB), Prosperity Bancshares, Inc. (PB), Texas Capital Bancshares, Inc. (TCBI) and Veritex Holdings, Inc. (VBTX). | ||||||||||||
Source : S&P Global Market Intelligence | ||||||||||||
© 2019 | ||||||||||||
As of and for the Years Ended December 31, | ||||||||||||||||||||
2018 | 2017 (1) | 2016 | 2015 | 2014 (2) | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Securities available for sale, at estimated fair value (3) | $ | 1,989,436 | $ | 1,538,755 | $ | 1,479,600 | $ | 1,460,492 | $ | 1,448,708 | ||||||||||
Securities held to maturity, at carrying value | $ | 162,931 | $ | 909,506 | $ | 937,487 | $ | 784,296 | $ | 642,319 | ||||||||||
Loans, net of allowance for loan losses | $ | 3,285,780 | $ | 3,273,575 | $ | 2,538,626 | $ | 2,412,017 | $ | 2,167,841 | ||||||||||
Total assets | $ | 6,123,494 | $ | 6,498,097 | $ | 5,563,767 | $ | 5,161,996 | $ | 4,807,176 | ||||||||||
Deposits | $ | 4,425,030 | $ | 4,515,447 | $ | 3,533,076 | $ | 3,455,407 | $ | 3,374,417 | ||||||||||
FHLB borrowings | $ | 719,065 | $ | 1,017,361 | $ | 1,309,646 | $ | 1,147,688 | $ | 897,420 | ||||||||||
Subordinated notes, net of unamortized debt issuance costs | $ | 98,407 | $ | 98,248 | $ | 98,100 | $ | — | $ | — | ||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | $ | 60,246 | $ | 60,241 | $ | 60,236 | $ | 60,231 | $ | 60,226 | ||||||||||
Shareholders’ equity | $ | 731,291 | $ | 754,140 | $ | 518,274 | $ | 444,062 | $ | 425,243 | ||||||||||
Income Statement Data: | ||||||||||||||||||||
Interest income | $ | 229,165 | $ | 187,474 | $ | 168,913 | $ | 154,532 | $ | 123,778 | ||||||||||
Interest expense | $ | 57,101 | $ | 43,504 | $ | 29,348 | $ | 19,854 | $ | 16,956 | ||||||||||
Provision for loan losses | $ | 8,437 | $ | 4,675 | $ | 9,780 | $ | 8,343 | $ | 14,938 | ||||||||||
Deposit services (3) | $ | 25,082 | $ | 21,785 | $ | 20,702 | $ | 20,112 | $ | 15,280 | ||||||||||
Net (loss) gain on sale of securities available for sale | $ | (1,839 | ) | $ | 625 | $ | 2,836 | $ | 3,660 | $ | 2,830 | |||||||||
Noninterest income (3) | $ | 40,773 | $ | 37,473 | $ | 39,411 | $ | 37,895 | $ | 24,489 | ||||||||||
Noninterest expense (3) | $ | 120,099 | $ | 106,335 | $ | 109,522 | $ | 112,954 | $ | 97,704 | ||||||||||
Net income (3) | $ | 74,138 | $ | 54,312 | $ | 49,349 | $ | 43,997 | $ | 20,833 | ||||||||||
Per Share Data: | ||||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||
Basic | $ | 2.12 | $ | 1.82 | $ | 1.82 | $ | 1.61 | $ | 0.97 | ||||||||||
Diluted | $ | 2.11 | $ | 1.81 | $ | 1.81 | $ | 1.61 | $ | 0.97 | ||||||||||
Cash dividends paid per common share | $ | 1.20 | $ | 1.11 | $ | 1.01 | $ | 1.00 | $ | 0.96 | ||||||||||
Book value per common share | $ | 21.68 | $ | 21.55 | $ | 17.71 | $ | 16.25 | $ | 15.61 |
(1) | We completed the acquisition of Diboll on November 30, 2017. Accordingly, our balance sheet data as of December 31, 2017 reflects the effects of the acquisition of Diboll. Income statement data with respect to Diboll includes only the results of Diboll’s operations subsequent to the closing of the acquisition of Diboll on November 30 through December 31, 2017. |
(2) | We completed the acquisition of Omni on December 17, 2014. Accordingly, our balance sheet data as of December 31, 2014 reflects the effects of the acquisition of Omni. Income statement data with respect to Omni includes only the results of Omni’s operations subsequent to the closing of the acquisition of Omni on December 17 through December 31, 2014. |
(3) | Due to the adoption of certain regulatory guidance adopted under the modified retrospective approach, prior periods may not be comparative. Additionally, the Tax Act was enacted on December 22, 2017. See “Note 1 - Summary of Significant Accounting and Reporting Policies – Accounting Changes and Reclassifications” for further information. |
• | general economic conditions, either globally, nationally, in the State of Texas, or in the specific markets in which we operate, including, without limitation, the deterioration of the commercial real estate, residential real estate, construction and development, energy, oil and gas, credit and liquidity markets, which could cause an adverse change in our net interest margin, or a decline in the value of our assets, which could result in realized losses; |
• | current or future legislation, regulatory changes or changes in monetary or fiscal policy that adversely affect the businesses in which we are engaged, including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”), the Federal Reserve’s actions with respect to interest rates, the capital requirements promulgated by the Basel Committee on Banking Supervision (“Basel Committee”) and other regulatory responses to economic conditions; |
• | adverse changes in the status or financial condition of the Government-Sponsored Enterprises (the “GSEs”) which impact the GSEs’ guarantees or ability to pay or issue debt; |
• | adverse changes in the credit portfolio of other U.S. financial institutions relative to the performance of certain of our investment securities; |
• | economic or other disruptions caused by acts of terrorism in the United States, Europe or other areas; |
• | technological changes, including potential cyber-security incidents; |
• | our ability to identify and address cyber-security risks such as data security breaches, malware, “denial of service” attacks, “hacking” and identity theft, a failure of which could disrupt our business and result in the disclosure of and/or misuse or misappropriation of confidential or proprietary information, disruption or damage of our systems, increased costs, significant losses, or adverse effects to our reputation; |
• | the risk that our enterprise risk management framework may not identify or address risks adequately, which may result in unexpected losses; |
• | changes in the interest rate yield curve such as flat, inverted or steep yield curves, or changes in the interest rate environment that impact interest margins and may impact prepayments on our mortgage-backed securities (“MBS”) portfolio; |
• | increases in our nonperforming assets; |
• | our ability to maintain adequate liquidity to fund operations and growth; |
• | any applicable regulatory limits or other restrictions on Southside Bank’s ability to pay dividends to us; |
• | the failure of our assumptions underlying allowance for loan losses and other estimates; |
• | the failure to maintain an effective system of controls and procedures, including internal control over financial reporting; |
• | the effectiveness of our derivative financial instruments and hedging activities to manage risk; |
• | unexpected outcomes of, and the costs associated with, existing or new litigation involving us; |
• | changes impacting our balance sheet and leverage strategy; |
• | risks related to actual mortgage prepayments diverging from projections; |
• | risks related to actual U.S. Agency MBS prepayments exceeding projected prepayment levels; |
• | risks related to U.S. Agency MBS prepayments increasing due to U.S. Government programs designed to assist homeowners to refinance their mortgage that might not otherwise have qualified; |
• | our ability to monitor interest rate risk; |
• | risks related to fluctuations in the price per barrel of crude oil; |
• | significant increases in competition in the banking and financial services industry; |
• | changes in consumer spending, borrowing and saving habits; |
• | execution of future acquisitions, reorganization or disposition transactions, including the risk that the anticipated benefits of such transactions are not realized; |
• | our ability to increase market share and control expenses; |
• | our ability to develop competitive new products and services in a timely manner and the acceptance of such products and services by our customers; |
• | the effect of changes in federal or state tax laws; |
• | the effect of compliance with legislation or regulatory changes; |
• | the effect of changes in accounting policies and practices; |
• | credit risks of borrowers, including any increase in those risks due to changing economic conditions; |
• | risks related to loans secured by real estate, including the risk that the value and marketability of collateral could decline; and |
• | the risks identified in “Part I - Item 1A. Risk Factors – Risks Related to Our Business” in this report. |
Years Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Net interest income (GAAP) | $ | 172,064 | $ | 143,970 | $ | 139,565 | ||||||
Tax-equivalent adjustments: | ||||||||||||
Loans | 2,354 | 4,313 | 4,251 | |||||||||
Investment securities (tax-exempt) | 7,004 | 13,197 | 13,739 | |||||||||
Net interest income (FTE) (1) | $ | 181,422 | $ | 161,480 | $ | 157,555 | ||||||
Average earning assets | $ | 5,699,985 | $ | 5,254,431 | $ | 4,829,141 | ||||||
Net interest margin | 3.02 | % | 2.74 | % | 2.89 | % | ||||||
Net interest margin (FTE) (1) | 3.18 | % | 3.07 | % | 3.26 | % | ||||||
Net interest spread | 2.72 | % | 2.56 | % | 2.77 | % | ||||||
Net interest spread (FTE) (1) | 2.88 | % | 2.89 | % | 3.14 | % |
(1) | These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures. |
Years Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Interest income | ||||||||||||
Loans | $ | 158,691 | $ | 117,633 | $ | 106,564 | ||||||
Investment securities – taxable | 417 | 939 | 1,057 | |||||||||
Investment securities – tax-exempt | 24,960 | 24,529 | 22,654 | |||||||||
Mortgage-backed securities | 41,584 | 41,361 | 37,450 | |||||||||
FHLB stock and equity investments | 1,595 | 1,306 | 798 | |||||||||
Other interest earning assets | 1,918 | 1,706 | 390 | |||||||||
Total interest income | 229,165 | 187,474 | 168,913 | |||||||||
Interest expense | ||||||||||||
Deposits | 35,864 | 20,736 | 14,255 | |||||||||
FHLB borrowings | 12,813 | 15,106 | 11,751 | |||||||||
Subordinated notes | 5,659 | 5,633 | 1,628 | |||||||||
Trust preferred subordinated debentures | 2,610 | 2,013 | 1,706 | |||||||||
Other borrowings | 155 | 16 | 8 | |||||||||
Total interest expense | 57,101 | 43,504 | 29,348 | |||||||||
Net interest income | $ | 172,064 | $ | 143,970 | $ | 139,565 |
Years Ended December 31, 2018 Compared to 2017 | Years Ended December 31, 2017 Compared to 2016 | ||||||||||||||||||||||
Change Attributable to | Total Change | Change Attributable to | Total Change | ||||||||||||||||||||
Fully Taxable-Equivalent Basis: | Average Volume | Average Yield/Rate | Average Volume | Average Yield/Rate | |||||||||||||||||||
Interest income on: | |||||||||||||||||||||||
Loans (1) | $ | 30,072 | $ | 9,141 | $ | 39,213 | $ | 9,734 | $ | 1,382 | $ | 11,116 | |||||||||||
Loans held for sale | (149 | ) | 35 | (114 | ) | 1 | 14 | 15 | |||||||||||||||
Investment securities (taxable) | (831 | ) | 309 | (522 | ) | (153 | ) | 35 | (118 | ) | |||||||||||||
Investment securities (tax-exempt) (1) | 739 | (6,501 | ) | (5,762 | ) | 3,336 | (2,003 | ) | 1,333 | ||||||||||||||
Mortgage-backed securities | (2,253 | ) | 2,476 | 223 | 1,668 | 2,243 | 3,911 | ||||||||||||||||
FHLB stock and equity investments | (262 | ) | 551 | 289 | 173 | 335 | 508 | ||||||||||||||||
Interest earning deposits | (1,015 | ) | 1,005 | (10 | ) | 574 | 675 | 1,249 | |||||||||||||||
Federal funds sold | 164 | 58 | 222 | 60 | 7 | 67 | |||||||||||||||||
Total earning assets | 26,465 | 7,074 | 33,539 | 15,393 | 2,688 | 18,081 | |||||||||||||||||
Interest expense on: | |||||||||||||||||||||||
Savings deposits | 191 | 252 | 443 | 28 | 156 | 184 | |||||||||||||||||
Time deposits | 2,115 | 4,991 | 7,106 | 432 | 2,590 | 3,022 | |||||||||||||||||
Interest bearing demand deposits | 2,144 | 5,435 | 7,579 | (130 | ) | 3,405 | 3,275 | ||||||||||||||||
FHLB borrowings | (7,509 | ) | 5,216 | (2,293 | ) | 1,906 | 1,449 | 3,355 | |||||||||||||||
Subordinated notes, net of unamortized debt issuance costs | 9 | 17 | 26 | 4,035 | (30 | ) | 4,005 | ||||||||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | — | 597 | 597 | — | 307 | 307 | |||||||||||||||||
Other borrowings | 7 | 132 | 139 | 2 | 6 | 8 | |||||||||||||||||
Total interest bearing liabilities | (3,043 | ) | 16,640 | 13,597 | 6,273 | 7,883 | 14,156 | ||||||||||||||||
Net change | $ | 29,508 | $ | (9,566 | ) | $ | 19,942 | $ | 9,120 | $ | (5,195 | ) | $ | 3,925 |
(1) | Interest yields on loans and securities that are nontaxable for federal income tax purposes are presented on a fully taxable-equivalent basis assuming a marginal tax rate of 21% for 2018 and 35% for 2017 and 2016. See “Non-GAAP Financial Measures.” |
Average Balances with Average Yields and Rates | ||||||||||||||||||||||||||||||||
Years Ended | ||||||||||||||||||||||||||||||||
December 31, 2018 | December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||||||||||
Avg Balance | Interest | Avg Yield/Rate | Avg Balance | Interest | Avg Yield/Rate | Avg Balance | Interest | Avg Yield/Rate | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Loans (1) | $ | 3,290,651 | $ | 160,982 | 4.89 | % | $ | 2,666,265 | $ | 121,769 | 4.57 | % | $ | 2,452,803 | $ | 110,653 | 4.51 | % | ||||||||||||||
Loans held for sale | 1,451 | 63 | 4.34 | % | 5,058 | 177 | 3.50 | % | 5,036 | 162 | 3.22 | % | ||||||||||||||||||||
Securities: | ||||||||||||||||||||||||||||||||
Investment securities (taxable) (2) | 15,790 | 417 | 2.64 | % | 51,654 | 939 | 1.82 | % | 60,145 | 1,057 | 1.76 | % | ||||||||||||||||||||
Investment securities (tax-exempt) (2) | 781,127 | 31,964 | 4.09 | % | 765,854 | 37,726 | 4.93 | % | 699,472 | 36,393 | 5.20 | % | ||||||||||||||||||||
Mortgage-backed and related securities (2) | 1,462,055 | 41,584 | 2.84 | % | 1,543,826 | 41,361 | 2.68 | % | 1,479,528 | 37,450 | 2.53 | % | ||||||||||||||||||||
Total securities | 2,258,972 | 73,965 | 3.27 | % | 2,361,334 | 80,026 | 3.39 | % | 2,239,145 | 74,900 | 3.35 | % | ||||||||||||||||||||
FHLB stock, at cost, and equity investments | 54,998 | 1,595 | 2.90 | % | 66,855 | 1,306 | 1.95 | % | 56,071 | 798 | 1.42 | % | ||||||||||||||||||||
Interest earning deposits | 78,266 | 1,624 | 2.07 | % | 148,924 | 1,634 | 1.10 | % | 75,339 | 385 | 0.51 | % | ||||||||||||||||||||
Federal funds sold | 15,647 | 294 | 1.88 | % | 5,995 | 72 | 1.20 | % | 747 | 5 | 0.67 | % | ||||||||||||||||||||
Total earning assets | 5,699,985 | 238,523 | 4.18 | % | 5,254,431 | 204,984 | 3.90 | % | 4,829,141 | 186,903 | 3.87 | % | ||||||||||||||||||||
Cash and due from banks | 77,946 | 54,590 | 51,160 | |||||||||||||||||||||||||||||
Accrued interest and other assets | 473,639 | 369,872 | 373,278 | |||||||||||||||||||||||||||||
Less: Allowance for loan losses | (24,378 | ) | (19,042 | ) | (18,465 | ) | ||||||||||||||||||||||||||
Total assets | $ | 6,227,192 | $ | 5,659,851 | $ | 5,235,114 | ||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||
Savings deposits | $ | 359,509 | 907 | 0.25 | % | $ | 267,345 | 464 | 0.17 | % | $ | 244,826 | 280 | 0.11 | % | |||||||||||||||||
Time deposits | 1,160,423 | 18,112 | 1.56 | % | 990,553 | 11,006 | 1.11 | % | 941,716 | 7,984 | 0.85 | % | ||||||||||||||||||||
Interest bearing demand deposits | 1,978,140 | 16,845 | 0.85 | % | 1,645,557 | 9,266 | 0.56 | % | 1,681,422 | 5,991 | 0.36 | % | ||||||||||||||||||||
Total interest bearing deposits | 3,498,072 | 35,864 | 1.03 | % | 2,903,455 | 20,736 | 0.71 | % | 2,867,964 | 14,255 | 0.50 | % | ||||||||||||||||||||
FHLB borrowings | 720,785 | 12,813 | 1.78 | % | 1,222,033 | 15,106 | 1.24 | % | 1,060,631 | 11,751 | 1.11 | % | ||||||||||||||||||||
Subordinated notes, net of unamortized debt issuance costs | 98,327 | 5,659 | 5.76 | % | 98,172 | 5,633 | 5.74 | % | 27,860 | 1,628 | 5.84 | % | ||||||||||||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,243 | 2,610 | 4.33 | % | 60,238 | 2,013 | 3.34 | % | 60,233 | 1,706 | 2.83 | % | ||||||||||||||||||||
Other borrowings | 10,880 | 155 | 1.42 | % | 8,120 | 16 | 0.20 | % | 6,798 | 8 | 0.12 | % | ||||||||||||||||||||
Total interest bearing liabilities | 4,388,307 | 57,101 | 1.30 | % | 4,292,018 | 43,504 | 1.01 | % | 4,023,486 | 29,348 | 0.73 | % | ||||||||||||||||||||
Noninterest bearing deposits | 1,040,447 | 761,370 | 693,929 | |||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 47,176 | 43,440 | 49,275 | |||||||||||||||||||||||||||||
Total liabilities | 5,475,930 | 5,096,828 | 4,766,690 | |||||||||||||||||||||||||||||
Shareholders’ equity | 751,262 | 563,023 | 468,424 | |||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,227,192 | $ | 5,659,851 | $ | 5,235,114 | ||||||||||||||||||||||||||
Net interest income (FTE) | $ | 181,422 | $ | 161,480 | $ | 157,555 | ||||||||||||||||||||||||||
Net interest margin (FTE) | 3.18 | % | 3.07 | % | 3.26 | % | ||||||||||||||||||||||||||
Net interest spread (FTE) | 2.88 | % | 2.89 | % | 3.14 | % |
(1) | Interest on loans includes net fees on loans that are not material in amount. |
(2) | For the purpose of calculating the average yield, the average balance of securities is presented at historical cost. |
(3) | Note: As of December 31, 2018, 2017 and 2016, loans totaling $35.8 million, $2.9 million and $8.3 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate. |
2018 | Increase (Decrease) | 2017 | Increase (Decrease) | 2016 | |||||||||||||||||||||
Deposit services | $ | 25,082 | $ | 3,297 | 15.1 | % | $ | 21,785 | $ | 1,083 | 5.2 | % | $ | 20,702 | |||||||||||
Net (loss) gain on sale of securities available for sale | (1,839 | ) | (2,464 | ) | (394.2 | )% | 625 | (2,211 | ) | (78.0 | )% | 2,836 | |||||||||||||
Gain on sale of loans | 692 | (1,129 | ) | (62.0 | )% | 1,821 | (974 | ) | (34.8 | )% | 2,795 | ||||||||||||||
Trust income | 6,832 | 3,014 | 78.9 | % | 3,818 | 327 | 9.4 | % | 3,491 | ||||||||||||||||
Bank owned life insurance income | 2,923 | 386 | 15.2 | % | 2,537 | (89 | ) | (3.4 | )% | 2,626 | |||||||||||||||
Brokerage services | 1,987 | (435 | ) | (18.0 | )% | 2,422 | 295 | 13.9 | % | 2,127 | |||||||||||||||
Other noninterest income | 5,096 | 631 | 14.1 | % | 4,465 | (369 | ) | (7.6 | )% | 4,834 | |||||||||||||||
Total noninterest income | $ | 40,773 | $ | 3,300 | 8.8 | % | $ | 37,473 | $ | (1,938 | ) | (4.9 | )% | $ | 39,411 |
2018 | Increase (Decrease) | 2017 | Increase (Decrease) | 2016 | |||||||||||||||||||||
Salaries and employee benefits | $ | 70,643 | $ | 9,864 | 16.2 | % | $ | 60,779 | $ | (849 | ) | (1.4 | )% | $ | 61,628 | ||||||||||
Occupancy expense | 13,814 | 1,746 | 14.5 | % | 12,068 | (1,654 | ) | (12.1 | )% | 13,722 | |||||||||||||||
Acquisition expense | 2,413 | (1,939 | ) | (44.6 | )% | 4,352 | 4,352 | — | % | — | |||||||||||||||
Advertising, travel & entertainment | 2,894 | 675 | 30.4 | % | 2,219 | (424 | ) | (16.0 | )% | 2,643 | |||||||||||||||
ATM and debit card expense | 1,090 | (2,799 | ) | (72.0 | )% | 3,889 | 753 | 24.0 | % | 3,136 | |||||||||||||||
Professional fees | 4,035 | 191 | 5.0 | % | 3,844 | (1,102 | ) | (22.3 | )% | 4,946 | |||||||||||||||
Software and data processing expense | 3,996 | 969 | 32.0 | % | 3,027 | 116 | 4.0 | % | 2,911 | ||||||||||||||||
Telephone and communications | 1,847 | (58 | ) | (3.0 | )% | 1,905 | (26 | ) | (1.3 | )% | 1,931 | ||||||||||||||
FDIC insurance | 1,871 | 102 | 5.8 | % | 1,769 | (372 | ) | (17.4 | )% | 2,141 | |||||||||||||||
Amortization expense on intangibles | 5,213 | 3,258 | 166.6 | % | 1,955 | 15 | 0.8 | % | 1,940 | ||||||||||||||||
Other noninterest expense | 12,283 | 1,755 | 16.7 | % | 10,528 | (3,996 | ) | (27.5 | )% | 14,524 | |||||||||||||||
Total noninterest expense | $ | 120,099 | $ | 13,764 | 12.9 | % | $ | 106,335 | $ | (3,187 | ) | (2.9 | )% | $ | 109,522 |
December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||
Construction | $ | 507,732 | $ | 475,867 | $ | 380,175 | $ | 438,247 | $ | 267,830 | ||||||||||
1-4 Family Residential | 794,499 | 805,341 | 637,239 | 655,410 | 690,895 | |||||||||||||||
Commercial | 1,194,118 | 1,265,159 | 945,978 | 635,210 | 468,171 | |||||||||||||||
Commercial Loans | 356,649 | 266,422 | 177,265 | 242,527 | 226,460 | |||||||||||||||
Municipal Loans | 353,370 | 345,798 | 298,583 | 288,115 | 257,492 | |||||||||||||||
Loans to Individuals | 106,431 | 135,769 | 117,297 | 172,244 | 270,285 | |||||||||||||||
Total Loans | $ | 3,312,799 | $ | 3,294,356 | $ | 2,556,537 | $ | 2,431,753 | $ | 2,181,133 |
Due in One Year or Less(1) | After One but Within Five Years | After Five Years (2) | |||||||||
Real Estate Loans – Construction | $ | 197,501 | $ | 218,193 | $ | 92,038 | |||||
Commercial Loans | 155,966 | 167,692 | 32,991 | ||||||||
Municipal Loans | 6,848 | 62,619 | 283,903 | ||||||||
Total | $ | 360,315 | $ | 448,504 | $ | 408,932 |
Loans with Maturities After | ||||
One Year for Which: | Interest Rates are Fixed or Predetermined | $ | 417,103 | |
Interest Rates are Floating or Adjustable | $ | 440,333 |
(1) | The volume of commercial loans due within one year reflects our general policy of attempting to limit these loans to a short-term maturity. |
(2) | Nonaccrual loans totaling $651,000 are reflected in the due after five years column. |
Years Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Average Net Loans Outstanding (1) | $ | 3,290,651 | $ | 2,666,265 | $ | 2,452,803 | $ | 2,224,401 | $ | 1,420,802 | |||||||||
Balance of Allowance for Loan Losses at Beginning of Period (1) | $ | 20,781 | $ | 17,911 | $ | 19,736 | $ | 13,292 | $ | 18,877 | |||||||||
Loan Charge-Offs: | |||||||||||||||||||
Real Estate: | |||||||||||||||||||
Construction | (14 | ) | (35 | ) | — | (24 | ) | (14 | ) | ||||||||||
1-4 Family Residential | (91 | ) | (304 | ) | (43 | ) | (58 | ) | (22 | ) | |||||||||
Commercial | (783 | ) | — | — | — | — | |||||||||||||
Commercial Loans (2) | (756 | ) | (723 | ) | (11,396 | ) | (336 | ) | (66 | ) | |||||||||
Municipal Loans | — | — | — | (249 | ) | — | |||||||||||||
Loans to Individuals | (2,602 | ) | (2,391 | ) | (2,948 | ) | (3,688 | ) | (22,461 | ) | |||||||||
Total Loan Charge-Offs | (4,246 | ) | (3,453 | ) | (14,387 | ) | (4,355 | ) | (22,563 | ) | |||||||||
Recovery of Loans Previously Charged-Off: | |||||||||||||||||||
Real Estate: | |||||||||||||||||||
Construction | 7 | 1 | 269 | 207 | 156 | ||||||||||||||
1-4 Family Residential | 356 | 19 | 141 | 115 | 81 | ||||||||||||||
Commercial | 36 | 13 | 23 | 85 | 8 | ||||||||||||||
Commercial Loans | 244 | 312 | 666 | 153 | 171 | ||||||||||||||
Municipal Loans | — | — | 249 | — | — | ||||||||||||||
Loans to Individuals | 1,404 | 1,303 | 1,434 | 1,896 | 1,624 | ||||||||||||||
Total Recovery of Loans Previously Charged-Off | 2,047 | 1,648 | 2,782 | 2,456 | 2,040 | ||||||||||||||
Net Loan Charge-Offs | (2,199 | ) | (1,805 | ) | (11,605 | ) | (1,899 | ) | (20,523 | ) | |||||||||
Provision for Loan Losses (3) | 8,437 | 4,675 | 9,780 | 8,343 | 14,938 | ||||||||||||||
Allowance for Loan Losses at End of Period | $ | 27,019 | $ | 20,781 | $ | 17,911 | $ | 19,736 | $ | 13,292 | |||||||||
Net Charge-Offs to Average Net Loans Outstanding | 0.07 | % | 0.07 | % | 0.47 | % | 0.09 | % | 1.44 | % | |||||||||
Allowance for Loan Losses to Nonaccruing Loans | 75.54 | 707.56 | 216.32 | 96.15 | 324.51 | ||||||||||||||
Allowance for Loan Losses to Nonperforming Assets | 62.97 | 198.44 | 118.58 | 60.76 | 108.27 | ||||||||||||||
Allowance for Loan Losses to Total Loans | 0.82 | 0.63 | 0.70 | 0.81 | 0.61 |
December 31, | |||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||||||||||||
Amount | Percent of Loans To Total Loans | Amount | Percent of Loans To Total Loans | Amount | Percent of Loans To Total Loans | Amount | Percent of Loans To Total Loans | Amount | Percent of Loans To Total Loans | ||||||||||||||||||||||||||
Real Estate: | |||||||||||||||||||||||||||||||||||
Construction | $ | 3,597 | 15.3 | % | $ | 3,676 | 14.5 | % | $ | 4,147 | 14.9 | % | $ | 4,350 | 18.0 | % | $ | 2,456 | 12.3 | % | |||||||||||||||
1-4 Family Residential | 3,844 | 24.0 | % | 2,445 | 24.4 | % | 2,665 | 24.9 | % | 2,595 | 27.0 | % | 2,822 | 31.6 | % | ||||||||||||||||||||
Commercial | 13,968 | 36.0 | % | 10,821 | 38.4 | % | 7,204 | 37.0 | % | 4,577 | 26.1 | % | 3,025 | 21.5 | % | ||||||||||||||||||||
Commercial Loans | 3,974 | 10.8 | % | 2,094 | 8.1 | % | 2,263 | 6.9 | % | 6,596 | 10.0 | % | 3,279 | 10.4 | % | ||||||||||||||||||||
Municipal Loans | 525 | 10.7 | % | 860 | 10.5 | % | 750 | 11.7 | % | 725 | 11.8 | % | 716 | 11.8 | % | ||||||||||||||||||||
Loans to Individuals | 1,111 | 3.2 | % | 885 | 4.1 | % | 882 | 4.6 | % | 893 | 7.1 | % | 994 | 12.4 | % | ||||||||||||||||||||
Ending Balance | $ | 27,019 | 100.0 | % | $ | 20,781 | 100.0 | % | $ | 17,911 | 100.0 | % | $ | 19,736 | 100.0 | % | $ | 13,292 | 100.0 | % |
December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
Accruing Loans Past Due More Than 90 Days: (1) | ||||||||||||||||||||
Loans to Individuals | $ | — | $ | 1 | $ | 6 | $ | 3 | $ | 4 | ||||||||||
— | 1 | 6 | 3 | 4 | ||||||||||||||||
Loans on Nonaccrual: (1) | ||||||||||||||||||||
Real Estate Loans | 34,813 | 1,779 | 1,980 | 5,171 | 3,408 | |||||||||||||||
Commercial Loans | 639 | 903 | 5,477 | 13,896 | 416 | |||||||||||||||
Loans to Individuals | 318 | 255 | 823 | 1,459 | 272 | |||||||||||||||
35,770 | 2,937 | 8,280 | 20,526 | 4,096 | ||||||||||||||||
Restructured Loans: (2) | ||||||||||||||||||||
Real Estate Loans | 4,389 | 4,426 | 5,301 | 3,045 | 4,542 | |||||||||||||||
Commercial Loans | 995 | 703 | 464 | 7,401 | 595 | |||||||||||||||
Municipal Loans | 429 | 502 | 571 | 637 | 699 | |||||||||||||||
Loans to Individuals | 117 | 136 | 95 | 60 | 38 | |||||||||||||||
5,930 | 5,767 | 6,431 | 11,143 | 5,874 | ||||||||||||||||
Total Nonperforming Loans | 41,700 | 8,705 | 14,717 | 31,672 | 9,974 | |||||||||||||||
Other Real Estate Owned | 1,206 | 1,613 | 339 | 744 | 1,738 | |||||||||||||||
Repossessed Assets | — | 154 | 49 | 64 | 565 | |||||||||||||||
Total Nonperforming Assets | $ | 42,906 | $ | 10,472 | $ | 15,105 | $ | 32,480 | $ | 12,277 | ||||||||||
Nonperforming Assets to Total Assets | 0.70 | % | 0.16 | % | 0.27 | % | 0.63 | % | 0.26 | % | ||||||||||
Nonperforming Assets to Total Loans | 1.30 | 0.32 | 0.59 | 1.34 | 0.56 | |||||||||||||||
Nonaccrual Loans to Total Loans | 1.08 | 0.09 | 0.32 | 0.84 | 0.19 |
(1) | Excludes PCI loans measured at fair value at acquisition if the timing and amount of cash flows expected to be collected from those sales can be reasonably estimated. |
(2) | Includes $3.1 million, $2.9 million, $3.1 million and $7.5 million of PCI loans restructured during the years ended December 31, 2018, 2017, 2016 and 2015, respectively. There were no restructured PCI loans as of December 31, 2014. |
December 31, 2018 | ||||||||||||
Recorded Investment | Related Allowance for Loan Losses | Carrying Value | ||||||||||
Real Estate Loans | $ | 40,815 | $ | 5,390 | $ | 35,425 | ||||||
Commercial Loans | 2,366 | 368 | 1,998 | |||||||||
Municipal Loans | 429 | 1 | 428 | |||||||||
Loans to Individuals | 657 | 149 | 508 | |||||||||
Total (1) | $ | 44,267 | $ | 5,908 | $ | 38,359 |
December 31, 2017 | ||||||||||||
Recorded Investment | Related Allowance for Loan Losses | Carrying Value | ||||||||||
Real Estate Loans | $ | 5,237 | $ | 40 | $ | 5,197 | ||||||
Commercial Loans | 1,605 | 252 | 1,353 | |||||||||
Municipal Loans | 502 | 10 | 492 | |||||||||
Loans to Individuals | 205 | 51 | 154 | |||||||||
Total (1) | $ | 7,549 | $ | 353 | $ | 7,196 |
(1) | Includes $8.0 million and $2.9 million of PCI loans that experienced deteriorations in credit quality subsequent to the acquisition date as of December 31, 2018 and 2017, respectively. |
December 31, | ||||||||||||
Available for Sale: | 2018 | 2017 | 2016 | |||||||||
Investment Securities: | ||||||||||||
U.S. Treasury | $ | — | $ | — | $ | 70,069 | ||||||
U.S. Government Agency Debentures | — | 108,869 | — | |||||||||
State and Political Subdivisions | 716,601 | 392,664 | 385,197 | |||||||||
Other Stocks and Bonds | 2,709 | 5,055 | 6,651 | |||||||||
Other Equity Securities (1) | — | 5,920 | 5,920 | |||||||||
Mortgage-backed Securities: (2) | ||||||||||||
Residential | 732,972 | 718,029 | 627,508 | |||||||||
Commercial | 537,154 | 308,218 | 384,255 | |||||||||
Total | $ | 1,989,436 | $ | 1,538,755 | $ | 1,479,600 |
December 31, | ||||||||||||
Held to Maturity: | 2018 | 2017 | 2016 | |||||||||
Investment Securities: | ||||||||||||
State and Political Subdivisions | $ | 3,083 | $ | 413,632 | $ | 425,810 | ||||||
Mortgage-backed Securities: (2) | ||||||||||||
Residential | 59,655 | 129,044 | 136,312 | |||||||||
Commercial | 100,193 | 366,830 | 375,365 | |||||||||
Total | $ | 162,931 | $ | 909,506 | $ | 937,487 |
(1) | See “Note 1 - Summary of Significant Accounting and Reporting Policies,” for further information. |
(2) | All mortgage-backed securities are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
MATURING | |||||||||||||||||||||||||||
Within 1 Year | After 1 But Within 5 Years | After 5 But Within 10 Years | After 10 Years | ||||||||||||||||||||||||
Available for Sale: | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||||||
State and Political Subdivisions | $ | 3,602 | 5.70 | % | $ | 37,346 | 3.94 | % | $ | 175,181 | 4.29 | % | $ | 500,472 | 4.43 | % | |||||||||||
Other Stocks and Bonds | — | — | 2,709 | 4.20 | % | — | — | — | — | ||||||||||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||||||
Residential | 20 | 3.15 | % | 2,301 | 5.48 | % | 26,712 | 3.30 | % | 703,939 | 3.24 | % | |||||||||||||||
Commercial | — | — | 280,979 | 2.76 | % | 256,175 | 2.79 | % | — | — | |||||||||||||||||
Total | $ | 3,622 | 5.68 | % | $ | 323,335 | 2.93 | % | $ | 458,068 | 3.39 | % | $ | 1,204,411 | 3.73 | % |
MATURING | |||||||||||||||||||||||||||
After 1 But | After 5 But | ||||||||||||||||||||||||||
Within 1 Year | Within 5 Years | Within 10 Years | After 10 Years | ||||||||||||||||||||||||
Held to Maturity: | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||||||
State and Political Subdivisions | $ | 116 | 2.04 | % | $ | 1,696 | 2.98 | % | $ | 1,271 | 3.44 | % | $ | — | — | ||||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||||||
Residential | 7 | 3.38 | % | 235 | 4.86 | % | 70 | 5.85 | % | 59,343 | 3.59 | % | |||||||||||||||
Commercial | — | — | 54,808 | 2.60 | % | 35,364 | 2.86 | % | 10,021 | 2.75 | % | ||||||||||||||||
Total | $ | 123 | 2.12 | % | $ | 56,739 | 2.62 | % | $ | 36,705 | 2.88 | % | $ | 69,364 | 3.47 | % |
Years Ended December 31, | |||||||||||||||||||||
2018 | 2017 | 2016 | |||||||||||||||||||
Average Balance | Average Rate | Average Balance | Average Rate | Average Balance | Average Rate | ||||||||||||||||
Interest Bearing Demand Deposits | $ | 1,978,140 | 0.85 | % | $ | 1,645,557 | 0.56 | % | $ | 1,681,422 | 0.36 | % | |||||||||
Savings Deposits | 359,509 | 0.25 | % | 267,345 | 0.17 | % | 244,826 | 0.11 | % | ||||||||||||
Time Deposits | 1,160,423 | 1.56 | % | 990,553 | 1.11 | % | 941,716 | 0.85 | % | ||||||||||||
Total Interest Bearing Deposits | 3,498,072 | 1.03 | % | 2,903,455 | 0.71 | % | 2,867,964 | 0.50 | % | ||||||||||||
Noninterest Bearing Demand Deposits | 1,040,447 | N/A | 761,370 | N/A | 693,929 | N/A | |||||||||||||||
Total Deposits | $ | 4,538,519 | 0.79 | % | $ | 3,664,825 | 0.57 | % | $ | 3,561,893 | 0.40 | % |
December 31, 2018 | December 31, 2017 | |||||||
Three months or less | $ | 194,070 | $ | 143,295 | ||||
Over three to six months | 113,126 | 130,344 | ||||||
Over six to twelve months | 159,000 | 280,064 | ||||||
Over twelve months | 140,221 | 275,604 | ||||||
Total Time Deposits | $ | 606,417 | $ | 829,307 |
Years Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Federal funds purchased and repurchase agreements: | ||||||||||||
Balance at end of period | $ | 36,810 | $ | 9,498 | $ | 7,097 | ||||||
Average amount outstanding during the period (1) | 10,880 | 8,120 | 6,798 | |||||||||
Maximum amount outstanding during the period (2) | 36,810 | 9,498 | 11,516 | |||||||||
Weighted average interest rate during the period (3) | 1.4 | % | 0.2 | % | 0.1 | % | ||||||
Interest rate at end of period (4) | 2.1 | % | 0.2 | % | 0.2 | % | ||||||
FHLB borrowings: | ||||||||||||
Balance at end of period | $ | 719,065 | $ | 1,017,361 | $ | 1,309,646 | ||||||
Average amount outstanding during the period (1) | 720,785 | 1,222,033 | 1,060,631 | |||||||||
Maximum amount outstanding during the period (2) | 957,231 | 1,414,453 | 1,309,646 | |||||||||
Weighted average interest rate during the period (3) | 1.8 | % | 1.2 | % | 1.1 | % | ||||||
Interest rate at end of period (4) | 2.3 | % | 1.4 | % | 0.9 | % |
(1) | The average amount outstanding during the period was computed by dividing the total daily outstanding principal balances by the number of days in the period. |
(2) | The maximum amount outstanding at any month-end during the period. |
(3) | The weighted average interest rate during the period was computed by dividing the actual interest expense by the average balance outstanding during the period. The weighted average interest rate on the FHLB borrowings include the effect of interest rate swaps. |
(4) | Stated rate. |
Actual | For Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Actions Provisions | |||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
December 31, 2018: | |||||||||||||||||||||
Common Equity Tier 1 (to Risk Weighted Assets) | |||||||||||||||||||||
Consolidated | $ | 568,283 | 14.77 | % | $ | 173,174 | 4.50 | % | N/A | N/A | |||||||||||
Bank Only | $ | 714,991 | 18.59 | % | $ | 173,095 | 4.50 | % | $ | 250,026 | 6.50 | % | |||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||
Consolidated | $ | 626,718 | 16.29 | % | $ | 230,899 | 6.00 | % | N/A | N/A | |||||||||||
Bank Only | $ | 714,991 | 18.59 | % | $ | 230,793 | 6.00 | % | $ | 307,725 | 8.00 | % | |||||||||
Total Capital (to Risk Weighted Assets) | |||||||||||||||||||||
Consolidated | $ | 754,034 | 19.59 | % | $ | 307,865 | 8.00 | % | N/A | N/A | |||||||||||
Bank Only | $ | 743,900 | 19.34 | % | $ | 307,725 | 8.00 | % | $ | 384,656 | 10.00 | % | |||||||||
Tier 1 Capital (to Average Assets) (1) | |||||||||||||||||||||
Consolidated | $ | 626,718 | 10.64 | % | $ | 235,689 | 4.00 | % | N/A | N/A | |||||||||||
Bank Only | $ | 714,991 | 12.14 | % | $ | 235,532 | 4.00 | % | $ | 294,415 | 5.00 | % | |||||||||
December 31, 2017: | |||||||||||||||||||||
Common Equity Tier 1 (to Risk Weighted Assets) | |||||||||||||||||||||
Consolidated | $ | 570,610 | 14.65 | % | $ | 175,216 | 4.50 | % | N/A | N/A | |||||||||||
Bank Only | $ | 711,157 | 18.27 | % | $ | 175,145 | 4.50 | % | $ | 252,987 | 6.50 | % | |||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||
Consolidated | $ | 627,532 | 16.12 | % | $ | 233,621 | 6.00 | % | N/A | N/A | |||||||||||
Bank Only | $ | 711,157 | 18.27 | % | $ | 233,527 | 6.00 | % | $ | 311,369 | 8.00 | % | |||||||||
Total Capital (to Risk Weighted Assets) | |||||||||||||||||||||
Consolidated | $ | 748,532 | 19.22 | % | $ | 311,495 | 8.00 | % | N/A | N/A | |||||||||||
Bank Only | $ | 733,909 | 18.86 | % | $ | 311,369 | 8.00 | % | $ | 389,211 | 10.00 | % | |||||||||
Tier 1 Capital (to Average Assets) (1) | |||||||||||||||||||||
Consolidated | $ | 627,532 | 11.16 | % | $ | 224,844 | 4.00 | % | N/A | N/A | |||||||||||
Bank Only | $ | 711,157 | 12.66 | % | $ | 224,741 | 4.00 | % | $ | 280,926 | 5.00 | % |
Years Ended December 31, | |||||||||
2018 | 2017 | 2016 | |||||||
Return on Average Assets | 1.19 | % | 0.96 | % | 0.94 | % | |||
Return on Average Shareholders’ Equity | 9.87 | % | 9.65 | % | 10.54 | % | |||
Dividend Payout Ratio – Basic | 56.60 | % | 60.99 | % | 55.49 | % | |||
Dividend Payout Ratio – Diluted | 56.87 | % | 61.33 | % | 55.80 | % | |||
Average Shareholders’ Equity to Average Total Assets | 12.06 | % | 9.95 | % | 8.95 | % |
December 31, 2018 | December 31, 2017 | ||||||
Unused commitments: | |||||||
Commitments to extend credit | $ | 874,557 | $ | 804,715 | |||
Standby letters of credit | 27,438 | 14,890 | |||||
Total | $ | 901,995 | $ | 819,605 |
Payments Due By Period | ||||||||||||||||||||
Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | Total | ||||||||||||||||
Contractual obligations: | ||||||||||||||||||||
FHLB borrowings | $ | 336,502 | $ | 376,648 | $ | — | $ | 5,915 | $ | 719,065 | ||||||||||
Subordinated notes (1) | — | — | — | 100,000 | 100,000 | |||||||||||||||
Trust preferred subordinated debentures (1) | — | — | — | 60,311 | 60,311 | |||||||||||||||
Operating leases (2) | 1,265 | 2,064 | 1,302 | 1,352 | 5,983 | |||||||||||||||
Deferred compensation agreements (3) | 386,004 | 849,508 | 944,341 | 4,724,179 | 6,904,032 | |||||||||||||||
Time deposits | 845,661 | 158,796 | 45,934 | 5,180 | 1,055,571 | |||||||||||||||
Unsettled trades to purchase securities | 6,378 | — | — | — | 6,378 | |||||||||||||||
Total contractual obligations | $ | 1,575,810 | $ | 1,387,016 | $ | 991,577 | $ | 4,896,937 | $ | 8,851,340 |
(1) | Subordinated notes, net of unamortized debt issuance costs, were $98.4 million at December 31, 2018. Trust preferred subordinated debentures, net of unamortized debt issuance costs, were $60.2 million at December 31, 2018. See “Note 10 - Long-Term Debt” for further information. |
(2) | See “Note 17 - Off-Balance-Sheet Arrangements, Commitments and Contingencies” for further information. |
(3) | See “Note 11 - Employee Benefits” for further information. |
INDEX | ||
Report of Independent Registered Accounting Firm | ||
CONSOLIDATED FINANCIAL STATEMENTS | ||
Consolidated Balance Sheets as of December 31, 2018 and 2017 | ||
Consolidated Statements of Income for the years ended December 31, 2018, 2017 and 2016 | ||
Consolidated Statements of Comprehensive Income for the years ended December 31, 2018, 2017 and 2016 | ||
Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2018, 2017 and 2016 | ||
Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016 | ||
Notes to Consolidated Financial Statements | ||
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) | ||||||||
December 31, 2018 | December 31, 2017 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 87,375 | $ | 79,171 | ||||
Interest earning deposits | 23,884 | 111,541 | ||||||
Federal funds sold | 9,460 | 7,980 | ||||||
Total cash and cash equivalents | 120,719 | 198,692 | ||||||
Securities available for sale, at estimated fair value | 1,989,436 | 1,538,755 | ||||||
Securities held to maturity, at carrying value (estimated fair value of $159,781 and $921,800, respectively) | 162,931 | 909,506 | ||||||
FHLB stock, at cost | 32,583 | 55,729 | ||||||
Equity investments | 12,093 | 5,821 | ||||||
Loans held for sale | 601 | 2,001 | ||||||
Loans: | ||||||||
Loans | 3,312,799 | 3,294,356 | ||||||
Less: Allowance for loan losses | (27,019 | ) | (20,781 | ) | ||||
Net loans | 3,285,780 | 3,273,575 | ||||||
Premises and equipment, net | 135,972 | 133,640 | ||||||
Goodwill | 201,116 | 201,246 | ||||||
Other intangible assets, net | 17,779 | 22,993 | ||||||
Interest receivable | 27,287 | 28,491 | ||||||
Deferred tax asset, net | 9,776 | 12,204 | ||||||
Unsettled issuances of brokered certificates of deposit | 15,236 | — | ||||||
Bank owned life insurance | 98,160 | 100,368 | ||||||
Other assets | 14,025 | 15,076 | ||||||
Total assets | $ | 6,123,494 | $ | 6,498,097 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Noninterest bearing | $ | 994,680 | $ | 1,037,401 | ||||
Interest bearing | 3,430,350 | 3,478,046 | ||||||
Total deposits | 4,425,030 | 4,515,447 | ||||||
Federal funds purchased and repurchase agreements | 36,810 | 9,498 | ||||||
FHLB borrowings | 719,065 | 1,017,361 | ||||||
Subordinated notes, net of unamortized debt issuance costs | 98,407 | 98,248 | ||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,246 | 60,241 | ||||||
Unsettled trades to purchase securities | 6,378 | — | ||||||
Other liabilities | 46,267 | 43,162 | ||||||
Total liabilities | 5,392,203 | 5,743,957 | ||||||
Off-balance-sheet arrangements, commitments and contingencies (Note 17) | ||||||||
Shareholders’ equity: | ||||||||
Common stock: ($1.25 par value, 80,000,000 shares authorized and 37,845,224 shares issued at December 31, 2018 and 40,000,000 shares authorized and 37,802,352 shares issued at December 31, 2017) | 47,307 | 47,253 | ||||||
Paid-in capital | 762,470 | 757,439 | ||||||
Retained earnings | 64,797 | 32,851 | ||||||
Treasury stock, at cost (4,120,475 at December 31, 2018 and 2,802,019 at December 31, 2017) | (93,055 | ) | (47,105 | ) | ||||
Accumulated other comprehensive loss | (50,228 | ) | (36,298 | ) | ||||
Total shareholders’ equity | 731,291 | 754,140 | ||||||
Total liabilities and shareholders’ equity | $ | 6,123,494 | $ | 6,498,097 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) | ||||||||||||
Years Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Interest income | ||||||||||||
Loans | $ | 158,691 | $ | 117,633 | $ | 106,564 | ||||||
Investment securities – taxable | 417 | 939 | 1,057 | |||||||||
Investment securities – tax-exempt | 24,960 | 24,529 | 22,654 | |||||||||
Mortgage-backed securities | 41,584 | 41,361 | 37,450 | |||||||||
FHLB stock and equity investments | 1,595 | 1,306 | 798 | |||||||||
Other interest earning assets | 1,918 | 1,706 | 390 | |||||||||
Total interest income | 229,165 | 187,474 | 168,913 | |||||||||
Interest expense | ||||||||||||
Deposits | 35,864 | 20,736 | 14,255 | |||||||||
FHLB borrowings | 12,813 | 15,106 | 11,751 | |||||||||
Subordinated notes | 5,659 | 5,633 | 1,628 | |||||||||
Trust preferred subordinated debentures | 2,610 | 2,013 | 1,706 | |||||||||
Other borrowings | 155 | 16 | 8 | |||||||||
Total interest expense | 57,101 | 43,504 | 29,348 | |||||||||
Net interest income | 172,064 | 143,970 | 139,565 | |||||||||
Provision for loan losses | 8,437 | 4,675 | 9,780 | |||||||||
Net interest income after provision for loan losses | 163,627 | 139,295 | 129,785 | |||||||||
Noninterest income | ||||||||||||
Deposit services | 25,082 | 21,785 | 20,702 | |||||||||
Net (loss) gain on sale of securities available for sale | (1,839 | ) | 625 | 2,836 | ||||||||
Gain on sale of loans | 692 | 1,821 | 2,795 | |||||||||
Trust income | 6,832 | 3,818 | 3,491 | |||||||||
Bank owned life insurance income | 2,923 | 2,537 | 2,626 | |||||||||
Brokerage services | 1,987 | 2,422 | 2,127 | |||||||||
Other | 5,096 | 4,465 | 4,834 | |||||||||
Total noninterest income | 40,773 | 37,473 | 39,411 | |||||||||
Noninterest expense | ||||||||||||
Salaries and employee benefits | 70,643 | 60,779 | 61,628 | |||||||||
Occupancy expense | 13,814 | 12,068 | 13,722 | |||||||||
Acquisition expense | 2,413 | 4,352 | — | |||||||||
Advertising, travel & entertainment | 2,894 | 2,219 | 2,643 | |||||||||
ATM and debit card expense | 1,090 | 3,889 | 3,136 | |||||||||
Professional fees | 4,035 | 3,844 | 4,946 | |||||||||
Software and data processing expense | 3,996 | 3,027 | 2,911 | |||||||||
Telephone and communications | 1,847 | 1,905 | 1,931 | |||||||||
FDIC insurance | 1,871 | 1,769 | 2,141 | |||||||||
Amortization expense on intangibles | 5,213 | 1,955 | 1,940 | |||||||||
Other | 12,283 | 10,528 | 14,524 | |||||||||
Total noninterest expense | 120,099 | 106,335 | 109,522 | |||||||||
Income before income tax expense | 84,301 | 70,433 | 59,674 | |||||||||
Income tax expense | 10,163 | 16,121 | 10,325 | |||||||||
Net income | $ | 74,138 | $ | 54,312 | $ | 49,349 | ||||||
Earnings per common share – basic | $ | 2.12 | $ | 1.82 | $ | 1.82 | ||||||
Earnings per common share – diluted | $ | 2.11 | $ | 1.81 | $ | 1.81 | ||||||
Cash dividends paid per common share | $ | 1.20 | $ | 1.11 | $ | 1.01 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) | |||||||||||
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net income | $ | 74,138 | $ | 54,312 | $ | 49,349 | |||||
Other comprehensive income (loss): | |||||||||||
Securities available for sale and transferred securities: | |||||||||||
Change in unrealized (loss) gain on available for sale securities during the period | (34,238 | ) | 15,217 | (23,459 | ) | ||||||
Unrealized net gain on securities transferred from held to maturity to available for sale under the transition guidance enumerated in ASU 2017-12 | 11,881 | — | — | ||||||||
Change in net unrealized loss on securities transferred from held to maturity to available for sale | 401 | — | — | ||||||||
Change in net unrealized loss on securities transferred to held to maturity | — | — | (10,240 | ) | |||||||
Reclassification adjustment for net loss on equity investments, reclassified to retained earnings with adoption of ASU 2016-01 | 107 | — | — | ||||||||
Reclassification adjustment for amortization related to available for sale and to held to maturity debt securities | 1,244 | 1,255 | 429 | ||||||||
Reclassification adjustment for net loss (gain) on sale of available for sale securities, included in net income | 1,839 | (625 | ) | (2,836 | ) | ||||||
Derivatives: | |||||||||||
Change in unrealized gain on effective cash flow hedge interest rate swap derivatives | 2,351 | 3 | 5,255 | ||||||||
Change in net unrealized gains on interest rate swap derivatives terminated during the period | — | 273 | — | ||||||||
Reclassification adjustment from other comprehensive income (loss) related to derivatives designated as cash flow hedge | (1,406 | ) | 754 | 1,815 | |||||||
Pension plans: | |||||||||||
Amortization of net actuarial loss and prior service credit, included in net periodic benefit cost | 2,182 | 1,605 | 1,820 | ||||||||
Effect of settlement recognition | — | 8 | (8 | ) | |||||||
Prior service cost adjustment due to plan amendments | — | — | (121 | ) | |||||||
Change in net actuarial loss | (1,994 | ) | (5,218 | ) | (3,132 | ) | |||||
Other comprehensive (loss) income, before tax | (17,633 | ) | 13,272 | (30,477 | ) | ||||||
Income tax benefit (expense) related to items of other comprehensive income (loss) | 3,703 | (5,374 | ) | 10,667 | |||||||
Other comprehensive (loss) income, net of tax | (13,930 | ) | 7,898 | (19,810 | ) | ||||||
Comprehensive income | $ | 60,208 | $ | 62,210 | $ | 29,539 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (in thousands, except share amounts) | |||||||||||||||||||||||||||||
Common Stock | Paid In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||||||||||
Balance at December 31, 2015 | $ | 34,832 | $ | 424,078 | $ | 41,527 | $ | (37,692 | ) | $ | (18,683 | ) | $ | 444,062 | |||||||||||||||
Net Income | — | — | 49,349 | — | — | 49,349 | |||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (19,810 | ) | (19,810 | ) | |||||||||||||||||||||
Issuance of common stock for dividend reinvestment plan (44,575 shares) | 56 | 1,355 | — | — | — | 1,411 | |||||||||||||||||||||||
Net issuance of common stock (2,185,000 shares) | 2,731 | 73,261 | — | — | — | 75,992 | |||||||||||||||||||||||
Purchase of common stock (443,426 shares) | — | — | — | (10,199 | ) | — | (10,199 | ) | |||||||||||||||||||||
Stock compensation expense | — | 1,541 | — | — | — | 1,541 | |||||||||||||||||||||||
Tax benefit related to stock awards | — | 332 | — | — | — | 332 | |||||||||||||||||||||||
Net issuance of common stock under employee stock plans (108,225 shares) | 136 | 1,473 | (50 | ) | — | — | 1,559 | ||||||||||||||||||||||
Cash dividends paid on common stock ($1.01 per share) | — | — | (25,963 | ) | — | — | (25,963 | ) | |||||||||||||||||||||
Stock dividend declared (1,252,353 shares) | 1,565 | 33,200 | (34,765 | ) | — | — | — | ||||||||||||||||||||||
Balance at December 31, 2016 | 39,320 | 535,240 | 30,098 | (47,891 | ) | (38,493 | ) | 518,274 | |||||||||||||||||||||
Net Income | — | — | 54,312 | — | — | 54,312 | |||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 7,898 | 7,898 | |||||||||||||||||||||||
Issuance of common stock for dividend reinvestment plan (43,650 shares) | 54 | 1,429 | — | — | — | 1,483 | |||||||||||||||||||||||
Net issuance of common stock in connection with the acquisition of Diboll State Bancshares, Inc. (5,534,925 shares) | 6,919 | 193,168 | — | — | — | 200,087 | |||||||||||||||||||||||
Stock compensation expense | — | 1,815 | — | — | — | 1,815 | |||||||||||||||||||||||
Net issuance of common stock under employee stock plans (159,356 shares) | 61 | 1,726 | (103 | ) | 786 | — | 2,470 | ||||||||||||||||||||||
Cash dividends paid on common stock ($1.11 per share) | — | — | (32,199 | ) | — | — | (32,199 | ) | |||||||||||||||||||||
Stock dividend declared (719,515 shares) | 899 | 24,061 | (24,960 | ) | — | — | — | ||||||||||||||||||||||
Reclassification of certain deferred tax effects | — | — | 5,703 | — | (5,703 | ) | — | ||||||||||||||||||||||
Balance at December 31, 2017 | 47,253 | 757,439 | 32,851 | (47,105 | ) | (36,298 | ) | 754,140 | |||||||||||||||||||||
Net Income | — | — | 74,138 | — | — | 74,138 | |||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (13,930 | ) | (13,930 | ) | |||||||||||||||||||||
Issuance of common stock for dividend reinvestment plan (42,872 shares) | 54 | 1,424 | — | — | — | 1,478 | |||||||||||||||||||||||
Purchase of common stock (1,459,148 shares) | — | — | — | (47,193 | ) | — | (47,193 | ) | |||||||||||||||||||||
Stock compensation expense | — | 2,317 | — | — | — | 2,317 | |||||||||||||||||||||||
Net issuance of common stock under employee stock plans (140,692 shares) | — | 1,290 | (128 | ) | 1,243 | — | 2,405 | ||||||||||||||||||||||
Cash dividends paid on common stock ($1.20 per share) | — | — | (41,979 | ) | — | — | (41,979 | ) | |||||||||||||||||||||
Cumulative effect of ASU 2016-01 | — | — | — | — | — | (85 | ) | — | — | — | — | (85 | ) | ||||||||||||||||
Balance at December 31, 2018 | $ | 47,307 | $ | 762,470 | $ | 64,797 | $ | (93,055 | ) | $ | (50,228 | ) | $ | 731,291 |
Years Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
OPERATING ACTIVITIES: | ||||||||||||
Net income | $ | 74,138 | $ | 54,312 | $ | 49,349 | ||||||
Adjustments to reconcile net income to net cash provided by operations: | ||||||||||||
Depreciation and net amortization | 14,045 | 10,208 | 9,084 | |||||||||
Securities premium amortization (discount accretion), net | 13,675 | 17,639 | 19,126 | |||||||||
Loan (discount accretion) premium amortization, net | (2,333 | ) | (1,142 | ) | (2,520 | ) | ||||||
Provision for loan losses | 8,437 | 4,675 | 9,780 | |||||||||
Stock compensation expense | 2,317 | 1,815 | 1,541 | |||||||||
Deferred tax expense | 6,154 | 3,514 | 1,768 | |||||||||
Net tax benefit related to stock awards | — | — | (332 | ) | ||||||||
Net loss (gain) on sale of securities available for sale | 1,839 | (625 | ) | (2,836 | ) | |||||||
Net loss on premises and equipment | 768 | 152 | 376 | |||||||||
Gross proceeds from sales of loans held for sale | 24,092 | 58,747 | 82,062 | |||||||||
Gross originations of loans held for sale | (22,692 | ) | (53,107 | ) | (85,892 | ) | ||||||
Net loss on other real estate owned | 433 | 7 | 219 | |||||||||
Net gain on sale of customer receivables | (124 | ) | — | (194 | ) | |||||||
Net change in: | ||||||||||||
Interest receivable | 1,204 | (63 | ) | (2,483 | ) | |||||||
Other assets | (2,166 | ) | (3,909 | ) | 1,823 | |||||||
Interest payable | 1,257 | 570 | 2,334 | |||||||||
Other liabilities | 1,358 | (1,063 | ) | 3,520 | ||||||||
Net cash provided by operating activities | 122,402 | 91,730 | 86,725 | |||||||||
INVESTING ACTIVITIES: | ||||||||||||
Securities available for sale: | ||||||||||||
Purchases | (306,867 | ) | (619,398 | ) | (1,001,742 | ) | ||||||
Sales | 428,518 | 685,152 | 573,051 | |||||||||
Maturities, calls and principal repayments | 137,883 | 113,183 | 207,500 | |||||||||
Securities held to maturity: | ||||||||||||
Purchases | — | (6,260 | ) | (44,656 | ) | |||||||
Maturities, calls and principal repayments | 3,064 | 28,974 | 31,251 | |||||||||
Proceeds from redemption of FHLB stock and other investments | 24,360 | 6,945 | 3,644 | |||||||||
Purchases of FHLB stock and other investments | (1,518 | ) | (1,233 | ) | (13,667 | ) | ||||||
Net loan originations | (24,491 | ) | (117,750 | ) | (139,607 | ) | ||||||
Proceeds from sales of customer receivables | 4,300 | — | 3,325 | |||||||||
Net cash and cash equivalents acquired in acquisition | — | 115,598 | — | |||||||||
Net cash paid in acquisition | — | (23,941 | ) | — | ||||||||
Purchases of premises and equipment | (13,444 | ) | (9,633 | ) | (6,549 | ) | ||||||
Proceeds from bank owned life insurance | 5,956 | — | — | |||||||||
Proceeds from sales of premises and equipment | 1,943 | 12 | 128 | |||||||||
Proceeds from sales of other real estate owned | 1,717 | 659 | 2,024 | |||||||||
Proceeds from sales of repossessed assets | 483 | 429 | 894 | |||||||||
Net cash provided by (used in) investing activities | 261,904 | 172,737 | (384,404 | ) | ||||||||
(continued) |
Years Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
FINANCING ACTIVITIES: | ||||||||||||
Net change in deposits | $ | (106,014 | ) | $ | 82,960 | $ | 78,426 | |||||
Net increase in federal funds purchased and repurchase agreements | 27,312 | 2,401 | 4,668 | |||||||||
Proceeds from FHLB borrowings | 4,201,500 | 2,786,476 | 8,158,985 | |||||||||
Repayment of FHLB borrowings | (4,499,788 | ) | (3,078,743 | ) | (7,996,913 | ) | ||||||
Net proceeds from issuance of subordinated long-term debt | — | — | 98,060 | |||||||||
Tax benefit related to stock awards | — | — | 332 | |||||||||
Proceeds from stock option exercises | 2,653 | 2,692 | 1,663 | |||||||||
Cash paid to tax authority related to tax withholding on share-based awards | (248 | ) | (222 | ) | (104 | ) | ||||||
Purchase of common stock | (47,193 | ) | — | (10,199 | ) | |||||||
Proceeds from the issuance of common stock for dividend reinvestment plan | 1,478 | 1,483 | 1,411 | |||||||||
Proceeds from the issuance of common stock | — | — | 75,992 | |||||||||
Cash dividends paid | (41,979 | ) | (32,199 | ) | (25,963 | ) | ||||||
Payments for other financing activities | — | (277 | ) | — | ||||||||
Net cash (used in) provided by financing activities | (462,279 | ) | (235,429 | ) | 386,358 | |||||||
Net (decrease) increase in cash and cash equivalents | (77,973 | ) | 29,038 | 88,679 | ||||||||
Cash and cash equivalents at beginning of period | 198,692 | 169,654 | 80,975 | |||||||||
Cash and cash equivalents at end of period | $ | 120,719 | $ | 198,692 | $ | 169,654 | ||||||
SUPPLEMENTAL DISCLOSURES FOR CASH FLOW INFORMATION: | ||||||||||||
Interest paid | $ | 55,844 | $ | 42,934 | $ | 27,014 | ||||||
Income taxes paid | $ | 2,000 | $ | 11,300 | $ | 5,700 | ||||||
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: | ||||||||||||
Loans transferred to other repossessed assets and real estate through foreclosure | $ | 2,128 | $ | 574 | $ | 5,777 | ||||||
Loans transferred from portfolio to held for sale | $ | 3,984 | $ | — | $ | — | ||||||
Transfer of held to maturity securities to available for sale securities | $ | 743,421 | $ | — | $ | — | ||||||
Transfer of available for sale securities to held to maturity securities | $ | — | $ | — | $ | 157,083 | ||||||
Adjustment to pension liability | $ | 188 | $ | 3,605 | $ | 1,441 | ||||||
Stock dividend (2.5% for 2017, 5% for 2016) | $ | — | $ | 24,960 | $ | 34,765 | ||||||
Unsettled trades to purchase securities | $ | (6,378 | ) | $ | — | $ | (160 | ) | ||||
Unsettled issuances of brokered certificates of deposit | $ | 15,236 | $ | — | $ | — | ||||||
Common stock issued in acquisition | $ | — | $ | 200,364 | $ | — |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | Southside Bancshares, Inc. and Subsidiaries |
• | Deposit services. Service charges on deposit accounts include fees for banking services provided, overdrafts and non-sufficient funds. Revenue is generally recognized in accordance with published deposit account agreements for retail accounts or contractual agreements for commercial accounts. Our deposit services also include our ATM and debit card interchange revenue that is presented net of the associated costs. Interchange revenue is generated by our deposit customers’ usage and volume of activity. Interchange rates are not controlled by the Company, which effectively acts as processor that collects and remits payments associated with customer debit card transactions. |
• | Trust income. Trust income includes fees and commissions from investment management, administrative and advisory services primarily for individuals, and to a lesser extent, partnerships and corporations. Revenue is recognized on an accrual basis at the time the services are performed and when we have a right to invoice and are based on either the market value of the assets managed or the services provided. |
• | Brokerage services. Brokerage services income includes fees and commissions charged when we arrange for another party to transfer brokerage services to a customer. The fees and commissions under this agent relationship are based upon stated fee schedules based upon the type of transaction, volume and value of the services provided. |
• | Other noninterest income. Other noninterest income includes among other things, merchant services income. Merchant services revenue is derived from third party vendors that process credit card transactions on behalf of our merchant customers. Merchant services revenue is primarily comprised of residual fee income based on the referred merchant’s processing volumes and/or margin. |
Fair value of consideration transferred: | |||||
Common stock issued | $ | 200,364 | |||
Cash | 23,941 | ||||
Total consideration transferred | $ | 224,305 |
Goodwill | ||||
Balance as of December 31, 2017 | $ | 201,246 | ||
Less: measurement period adjustments | (130 | ) | ||
Balance as of December 31, 2018 | $ | 201,116 |
As Originally Reported (1) | Measurement Period Adjustments | Adjusted Balances | |||||||||
Cash, cash equivalents and amounts due from banks | $ | 115,598 | $ | — | $ | 115,598 | |||||
Other investments | 610 | — | 610 | ||||||||
Securities available for sale | 234,447 | — | 234,447 | ||||||||
Loans | 621,318 | — | 621,318 | ||||||||
Property and equipment | 26,256 | — | 26,256 | ||||||||
Other assets | 7,052 | — | 7,052 | ||||||||
Core deposit intangible | 14,700 | — | 14,700 | ||||||||
Trust relationship intangible | 5,400 | — | 5,400 | ||||||||
Goodwill | 109,726 | (130 | ) | 109,596 | |||||||
Deposits | (899,307 | ) | — | (899,307 | ) | ||||||
Deferred tax liability, net | (7,802 | ) | 84 | (7,718 | ) | ||||||
Other liabilities | (3,693 | ) | 46 | (3,647 | ) | ||||||
$ | 224,305 | $ | — | $ | 224,305 |
(1) | The estimated fair value as of the acquisition date, November 30, 2017, as previously reported in our Form 10-K for the year ended December 31, 2017. |
Purchased Credit Impaired Loans at Acquisition Date | |||
Contractually required principal and interest payments | $ | 59,286 | |
Nonaccretable difference | 4,560 | ||
Cash flows expected to be collected | 54,726 | ||
Accretable difference | 15,389 | ||
Fair value of loans acquired with a deterioration of credit quality | $ | 39,337 |
Fair Value at Acquisition Date | Contractual Amounts Receivable | Cash Flows Not Expected to be Collected at Acquisition Date (1) | |||||||||
Real Estate Loans: | |||||||||||
Construction | $ | 40,122 | $ | 56,905 | $ | 330 | |||||
1-4 Family Residential | 82,654 | 130,167 | 26,894 | ||||||||
Commercial | 319,623 | 484,529 | 97,431 | ||||||||
Commercial Loans | 82,083 | 87,688 | 1,226 | ||||||||
Municipal Loans | 7,848 | 9,998 | 28 | ||||||||
Loans to Individuals | 49,651 | 54,687 | 1,490 | ||||||||
Total Loans | $ | 581,981 | $ | 823,974 | $ | 127,399 |
(1) | Cash flows not expected to be collected relate to estimated credit losses and expected prepayments. |
Years Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Basic and Diluted Earnings: | ||||||||||||
Net Income | $ | 74,138 | $ | 54,312 | $ | 49,349 | ||||||
Basic weighted-average shares outstanding | 34,951 | 29,841 | 27,118 | |||||||||
Add: Stock awards | 165 | 206 | 129 | |||||||||
Diluted weighted-average shares outstanding | 35,116 | 30,047 | 27,247 | |||||||||
Basic Earnings Per Share: | ||||||||||||
Net Income | $ | 2.12 | $ | 1.82 | $ | 1.82 | ||||||
Diluted Earnings Per Share: | ||||||||||||
Net Income | $ | 2.11 | $ | 1.81 | $ | 1.81 |
Year Ended December 31, 2018 | |||||||||||||||||||
Pension Plans | |||||||||||||||||||
Unrealized Gains (Losses) on Securities | Unrealized Gains (Losses) on Derivatives | Net Prior Service (Cost) Credit | Net Gain (Loss) | Total | |||||||||||||||
Beginning balance, net of tax | $ | (16,295 | ) | $ | 6,399 | $ | (133 | ) | $ | (26,269 | ) | $ | (36,298 | ) | |||||
Other comprehensive (loss) income: | |||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (21,956 | ) | 2,351 | — | (1,994 | ) | (21,599 | ) | |||||||||||
Reclassified from accumulated other comprehensive income (1) | 3,190 | (1,406 | ) | (7 | ) | 2,189 | 3,966 | ||||||||||||
Income tax benefit (expense) | 3,941 | (198 | ) | 1 | (41 | ) | 3,703 | ||||||||||||
Net current-period other comprehensive (loss) income, net of tax | (14,825 | ) | 747 | (6 | ) | 154 | (13,930 | ) | |||||||||||
Ending balance, net of tax | $ | (31,120 | ) | $ | 7,146 | $ | (139 | ) | $ | (26,115 | ) | $ | (50,228 | ) |
Year Ended December 31, 2017 | |||||||||||||||||||
Pension Plans | |||||||||||||||||||
Unrealized Gains (Losses) on Securities | Unrealized Gains (Losses) on Derivatives | Net Prior Service (Cost) Credit | Net Gain (Loss) | Total | |||||||||||||||
Beginning balance, net of tax | $ | (23,708 | ) | $ | 4,595 | $ | (133 | ) | $ | (19,247 | ) | $ | (38,493 | ) | |||||
Other comprehensive (loss) income: | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 15,217 | 276 | 8 | (5,218 | ) | 10,283 | |||||||||||||
Reclassified from accumulated other comprehensive income | 630 | 754 | (8 | ) | 1,613 | 2,989 | |||||||||||||
Income tax (expense) benefit | (5,546 | ) | (360 | ) | — | 532 | (5,374 | ) | |||||||||||
Net current-period other comprehensive income (loss), net of tax | 10,301 | 670 | — | (3,073 | ) | 7,898 | |||||||||||||
Reclassification of certain deferred tax effects (2) | (2,888 | ) | 1,134 | — | (3,949 | ) | (5,703 | ) | |||||||||||
Ending balance, net of tax | $ | (16,295 | ) | $ | 6,399 | $ | (133 | ) | $ | (26,269 | ) | $ | (36,298 | ) |
(1) | As discussed in “Note 1 – Summary of Significant Accounting and Reporting Policies,” the Company adopted ASU 2016-01 on January 1, 2018. This amount includes a reclassification for the cumulative adjustment to retained earnings of $107,000 ($85,000, net of tax). |
(2) | Amounts reclassified to retained earnings due to early adoption of ASU 2018-02. See “Note 1 – Summary of Significant Accounting and Reporting Policies” for further information. |
Year Ended December 31, 2016 | |||||||||||||||||||
Pension Plans | |||||||||||||||||||
Unrealized Gains (Losses) on Securities | Unrealized Gains (Losses) on Derivatives | Net Prior Service (Cost) Credit | Net Gain (Loss) | Total | |||||||||||||||
Beginning balance, net of tax | $ | (239 | ) | $ | — | $ | (44 | ) | $ | (18,400 | ) | $ | (18,683 | ) | |||||
Other comprehensive (loss) income: | |||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (33,699 | ) | 5,255 | (129 | ) | (3,132 | ) | (31,705 | ) | ||||||||||
Reclassified from accumulated other comprehensive income | (2,407 | ) | 1,815 | (8 | ) | 1,828 | 1,228 | ||||||||||||
Income tax benefit (expense) | 12,637 | (2,475 | ) | 48 | 457 | 10,667 | |||||||||||||
Net current-period other comprehensive (loss) income, net of tax | (23,469 | ) | 4,595 | (89 | ) | (847 | ) | (19,810 | ) | ||||||||||
Ending balance, net of tax | $ | (23,708 | ) | $ | 4,595 | $ | (133 | ) | $ | (19,247 | ) | $ | (38,493 | ) |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Unrealized losses on securities transferred: | ||||||||||||
Amortization of unrealized losses (1) | $ | (1,244 | ) | $ | (1,255 | ) | $ | (429 | ) | |||
Tax benefit | 261 | 439 | 150 | |||||||||
Net of tax | $ | (983 | ) | $ | (816 | ) | $ | (279 | ) | |||
Unrealized gains and losses on available for sale securities: | ||||||||||||
Realized net (loss) gain on sale of securities (2) | $ | (1,839 | ) | $ | 625 | $ | 2,836 | |||||
Tax benefit (expense) | 386 | (219 | ) | (993 | ) | |||||||
Net of tax | $ | (1,453 | ) | $ | 406 | $ | 1,843 | |||||
Derivatives: | ||||||||||||
Realized net gain (loss) on interest rate swap derivatives (3) | $ | 1,319 | $ | (828 | ) | $ | (1,815 | ) | ||||
Tax (expense) benefit | (277 | ) | 290 | 635 | ||||||||
Net of tax | $ | 1,042 | $ | (538 | ) | $ | (1,180 | ) | ||||
Amortization of unrealized gains on terminated interest rate swap derivatives (3) | $ | 87 | $ | 74 | $ | — | ||||||
Tax expense | (18 | ) | (26 | ) | — | |||||||
Net of tax | $ | 69 | $ | 48 | $ | — | ||||||
Amortization of pension plan: | ||||||||||||
Net actuarial loss (4) | $ | (2,189 | ) | $ | (1,613 | ) | $ | (1,828 | ) | |||
Prior service credit (4) | 7 | 8 | 8 | |||||||||
Total before tax | (2,182 | ) | (1,605 | ) | (1,820 | ) | ||||||
Tax benefit | 459 | 562 | 637 | |||||||||
Net of tax | $ | (1,723 | ) | $ | (1,043 | ) | $ | (1,183 | ) | |||
Total reclassifications for the period, net of tax | $ | (3,048 | ) | $ | (1,943 | ) | $ | (799 | ) |
(4) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (income) presented in “Note 11 - Employee Benefits.” |
December 31, 2018 | ||||||||||||||||
Amortized | Gross Unrealized | Gross Unrealized | Estimated | |||||||||||||
AVAILABLE FOR SALE | Cost | Gains | Losses | Fair Value | ||||||||||||
Investment Securities: | ||||||||||||||||
State and Political Subdivisions | $ | 728,142 | $ | 6,115 | $ | 17,656 | $ | 716,601 | ||||||||
Other Stocks and Bonds | 3,000 | — | 291 | 2,709 | ||||||||||||
Mortgage-backed Securities: (1) | ||||||||||||||||
Residential | 738,585 | 3,498 | 9,111 | 732,972 | ||||||||||||
Commercial | 543,758 | 941 | 7,545 | 537,154 | ||||||||||||
Total | $ | 2,013,485 | $ | 10,554 | $ | 34,603 | $ | 1,989,436 | ||||||||
HELD TO MATURITY | ||||||||||||||||
Investment Securities: | ||||||||||||||||
State and Political Subdivisions | $ | 3,083 | $ | 5 | $ | 42 | $ | 3,046 | ||||||||
Mortgage-backed Securities: (1) | ||||||||||||||||
Residential | 59,655 | 154 | 1,140 | 58,669 | ||||||||||||
Commercial | 100,193 | 201 | 2,328 | 98,066 | ||||||||||||
Total | $ | 162,931 | $ | 360 | $ | 3,510 | $ | 159,781 |
December 31, 2017 | ||||||||||||||||
Amortized | Gross Unrealized | Gross Unrealized | Estimated | |||||||||||||
AVAILABLE FOR SALE | Cost | Gains | Losses | Fair Value | ||||||||||||
Investment Securities: | ||||||||||||||||
U.S. Government Agency Debentures | $ | 108,869 | $ | — | $ | — | $ | 108,869 | ||||||||
State and Political Subdivisions | 392,760 | 3,895 | 3,991 | 392,664 | ||||||||||||
Other Stocks and Bonds | 5,024 | 31 | — | 5,055 | ||||||||||||
Other Equity Securities (2) | 6,027 | — | 107 | 5,920 | ||||||||||||
Mortgage-backed Securities: (1) | ||||||||||||||||
Residential | 720,930 | 4,476 | 7,377 | 718,029 | ||||||||||||
Commercial | 308,357 | 761 | 900 | 308,218 | ||||||||||||
Total | $ | 1,541,967 | $ | 9,163 | $ | 12,375 | $ | 1,538,755 | ||||||||
HELD TO MATURITY | ||||||||||||||||
Investment Securities: | ||||||||||||||||
State and Political Subdivisions | $ | 413,632 | $ | 10,879 | $ | 2,583 | $ | 421,928 | ||||||||
Mortgage-backed Securities: (1) | ||||||||||||||||
Residential | 129,044 | 1,631 | 239 | 130,436 | ||||||||||||
Commercial | 366,830 | 3,812 | 1,206 | 369,436 | ||||||||||||
Total | $ | 909,506 | $ | 16,322 | $ | 4,028 | $ | 921,800 |
(1) | All mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
(2) | See “Note 1 - Summary of Significant Accounting and Reporting Policies” for further information. |
December 31, 2018 | |||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
AVAILABLE FOR SALE | |||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||
State and Political Subdivisions | $ | 98,112 | $ | 899 | $ | 399,205 | $ | 16,757 | $ | 497,317 | $ | 17,656 | |||||||||||
Other Stocks and Bonds | 2,709 | 291 | — | — | 2,709 | 291 | |||||||||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Residential | 5,552 | 27 | 488,334 | 9,084 | 493,886 | 9,111 | |||||||||||||||||
Commercial | 9,529 | 30 | 457,704 | 7,515 | 467,233 | 7,545 | |||||||||||||||||
Total | $ | 115,902 | $ | 1,247 | $ | 1,345,243 | $ | 33,356 | $ | 1,461,145 | $ | 34,603 | |||||||||||
HELD TO MATURITY | |||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||
State and Political Subdivisions | $ | 235 | $ | 1 | $ | 2,022 | $ | 41 | $ | 2,257 | $ | 42 | |||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Residential | 4,826 | 60 | 51,046 | 1,080 | 55,872 | 1,140 | |||||||||||||||||
Commercial | 399 | 2 | 89,168 | 2,326 | 89,567 | 2,328 | |||||||||||||||||
Total | $ | 5,460 | $ | 63 | $ | 142,236 | $ | 3,447 | $ | 147,696 | $ | 3,510 | |||||||||||
December 31, 2017 | |||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
AVAILABLE FOR SALE | |||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||
State and Political Subdivisions | $ | 32,341 | $ | 121 | $ | 172,006 | $ | 3,870 | $ | 204,347 | $ | 3,991 | |||||||||||
Other Equity Securities (1) | 5,920 | 107 | — | — | 5,920 | 107 | |||||||||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Residential | 429,742 | 3,232 | 102,973 | 4,145 | 532,715 | 7,377 | |||||||||||||||||
Commercial | 146,796 | 419 | 13,134 | 481 | 159,930 | 900 | |||||||||||||||||
Total | $ | 614,799 | $ | 3,879 | $ | 288,113 | $ | 8,496 | $ | 902,912 | $ | 12,375 | |||||||||||
HELD TO MATURITY | |||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||
State and Political Subdivisions | $ | 85,608 | $ | 807 | $ | 56,736 | $ | 1,776 | $ | 142,344 | $ | 2,583 | |||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Residential | 24,707 | 157 | 2,736 | 82 | 27,443 | 239 | |||||||||||||||||
Commercial | 136,491 | 782 | 13,552 | 424 | 150,043 | 1,206 | |||||||||||||||||
Total | $ | 246,806 | $ | 1,746 | $ | 73,024 | $ | 2,282 | $ | 319,830 | $ | 4,028 |
(1) | See “Note 1 – Summary of Significant Accounting and Reporting Policies” for further information. |
Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
U.S. Treasury | $ | 218 | $ | 519 | $ | 739 | |||||
U.S. Government Agency Debentures | 89 | 178 | — | ||||||||
State and Political Subdivisions | 24,960 | 24,530 | 22,654 | ||||||||
Other Stocks and Bonds | 110 | 125 | 195 | ||||||||
Other Equity Securities (1) | — | 116 | 123 | ||||||||
Mortgage-backed Securities | 41,584 | 41,361 | 37,450 | ||||||||
Total interest income on securities | $ | 66,961 | $ | 66,829 | $ | 61,161 |
(1) | See “Note 1 - Summary of Significant Accounting and Reporting Policies” for further information. |
December 31, 2018 | |||||||
Amortized Cost | Fair Value | ||||||
AVAILABLE FOR SALE | |||||||
Investment Securities: | |||||||
Due in one year or less | $ | 3,559 | $ | 3,602 | |||
Due after one year through five years | 39,169 | 40,055 | |||||
Due after five years through ten years | 176,316 | 175,181 | |||||
Due after ten years | 512,098 | 500,472 | |||||
731,142 | 719,310 | ||||||
Mortgage-backed Securities | 1,282,343 | 1,270,126 | |||||
Total | $ | 2,013,485 | $ | 1,989,436 |
December 31, 2018 | |||||||
Amortized Cost | Fair Value | ||||||
HELD TO MATURITY | |||||||
Investment Securities: | |||||||
Due in one year or less | $ | 116 | $ | 115 | |||
Due after one year through five years | 1,696 | 1,674 | |||||
Due after five years through ten years | 1,271 | 1,257 | |||||
Due after ten years | — | — | |||||
3,083 | 3,046 | ||||||
Mortgage-backed Securities: | 159,848 | 156,735 | |||||
Total | $ | 162,931 | $ | 159,781 |
Year Ended | ||||
December 31, 2018 | ||||
Net losses recognized during the period on equity investments | $ | (117 | ) | |
Less: Net gains (losses) recognized during the period on equity investments sold during the period | — | |||
Unrealized losses recognized during the reporting period on equity investments still held at the reporting date | $ | (117 | ) |
December 31, 2018 | December 31, 2017 | |||||||
Real Estate Loans: | ||||||||
Construction | $ | 507,732 | $ | 475,867 | ||||
1-4 Family Residential | 794,499 | 805,341 | ||||||
Commercial | 1,194,118 | 1,265,159 | ||||||
Commercial Loans | 356,649 | 266,422 | ||||||
Municipal Loans | 353,370 | 345,798 | ||||||
Loans to Individuals | 106,431 | 135,769 | ||||||
Total Loans | 3,312,799 | 3,294,356 | ||||||
Less: Allowance for Loan Losses (1) | 27,019 | 20,781 | ||||||
Net Loans | $ | 3,285,780 | $ | 3,273,575 |
(1) | Loans acquired with the Diboll acquisition were measured at fair value on November 30, 2017, with no carryover of allowance for loan loss. The allowance for loan loss recorded on PCI loans totaled $302,000 as of December 31, 2018. There was no allowance for loan loss recorded on PCI loans as of December 31, 2017. |
• | Pass (Rating 1 – 4) – This rating is assigned to all satisfactory loans. This category, by definition, consists of acceptable credit. Credit and collateral exceptions should not be present, although their presence would not necessarily prohibit a loan from being rated Pass, if deficiencies are in the process of correction. These loans are not included in the Watch List. |
• | Pass Watch (Rating 5) – These loans require some degree of special treatment but not due to credit quality. This category does not include loans specially mentioned or adversely classified; however, particular attention is warranted to characteristics such as: |
◦ | A lack of, or abnormally extended payment program; |
◦ | A heavy degree of concentration of collateral without sufficient margin; |
◦ | A vulnerability to competition through lesser or extensive financial leverage; and |
◦ | A dependence on a single or few customers or sources of supply and materials without suitable substitutes or alternatives. |
• | Special Mention (Rating 6) – A Special Mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in our credit position at some future date. Special Mention loans are not adversely classified and do not expose us to sufficient risk to warrant adverse classification. |
• | Substandard (Rating 7) – Substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. |
• | Doubtful (Rating 8) – Loans classified as Doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation, in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. |
• | Changes in lending policies or procedures, including underwriting, collection, charge-off and recovery procedures; |
• | Changes in local, regional and national economic and business conditions, including entry into new markets; |
• | Changes in the volume or type of credit extended; |
• | Changes in the experience, ability and depth of lending management; |
• | Changes in the volume and severity of past due, nonaccrual, restructured or classified loans; |
• | Changes in charge-off trends; |
• | Changes in loan review or Board oversight; |
• | Changes in the level of concentrations of credit; and |
• | Changes in external factors, such as competition and legal and regulatory requirements. |
Year Ended December 31, 2018 | ||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||
Construction | 1-4 Family Residential | Commercial | Commercial Loans | Municipal Loans | Loans to Individuals | Total | ||||||||||||||||||||||
Balance at beginning of period (1) | $ | 3,676 | $ | 2,445 | $ | 10,821 | $ | 2,094 | $ | 860 | $ | 885 | $ | 20,781 | ||||||||||||||
Provision (reversal) for loan losses (2) | (72 | ) | 1,134 | 3,894 | 2,392 | (335 | ) | 1,424 | 8,437 | |||||||||||||||||||
Loans charged off | (14 | ) | (91 | ) | (783 | ) | (756 | ) | — | (2,602 | ) | (4,246 | ) | |||||||||||||||
Recoveries of loans charged off | 7 | 356 | 36 | 244 | — | 1,404 | 2,047 | |||||||||||||||||||||
Balance at end of period | $ | 3,597 | $ | 3,844 | $ | 13,968 | $ | 3,974 | $ | 525 | $ | 1,111 | $ | 27,019 |
Year Ended December 31, 2017 | ||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||
Construction | 1-4 Family Residential | Commercial | Commercial Loans | Municipal Loans | Loans to Individuals | Total | ||||||||||||||||||||||
Balance at beginning of period | $ | 4,147 | $ | 2,665 | $ | 7,204 | $ | 2,263 | $ | 750 | $ | 882 | $ | 17,911 | ||||||||||||||
Provision (reversal) for loan losses (2) | (437 | ) | 65 | 3,604 | 242 | 110 | 1,091 | 4,675 | ||||||||||||||||||||
Loans charged off | (35 | ) | (304 | ) | — | (723 | ) | — | (2,391 | ) | (3,453 | ) | ||||||||||||||||
Recoveries of loans charged off | 1 | 19 | 13 | 312 | — | 1,303 | 1,648 | |||||||||||||||||||||
Balance at end of period (1) | $ | 3,676 | $ | 2,445 | $ | 10,821 | $ | 2,094 | $ | 860 | $ | 885 | $ | 20,781 |
Year Ended December 31, 2016 | ||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||
Construction | 1-4 Family Residential | Commercial | Commercial Loans (3) | Municipal Loans | Loans to Individuals | Total | ||||||||||||||||||||||
Balance at beginning of period | $ | 4,350 | $ | 2,595 | $ | 4,577 | $ | 6,596 | $ | 725 | $ | 893 | $ | 19,736 | ||||||||||||||
Provision (reversal) for loan losses (2) | (472 | ) | (28 | ) | 2,604 | 6,397 | (224 | ) | 1,503 | 9,780 | ||||||||||||||||||
Loans charged off (3) | — | (43 | ) | — | (11,396 | ) | — | (2,948 | ) | (14,387 | ) | |||||||||||||||||
Recoveries of loans charged off | 269 | 141 | 23 | 666 | 249 | 1,434 | 2,782 | |||||||||||||||||||||
Balance at end of period | $ | 4,147 | $ | 2,665 | $ | 7,204 | $ | 2,263 | $ | 750 | $ | 882 | $ | 17,911 |
(3) | Of the $11.4 million in commercial charge-offs recorded for the year ended December 31, 2016, $10.9 million relates to the charge-off of two large commercial borrowing relationships. |
December 31, 2018 | ||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||
Construction | 1-4 Family Residential | Commercial | Commercial Loans | Municipal Loans | Loans to Individuals | Total | ||||||||||||||||||||||
Ending balance – individually evaluated for impairment (1) | $ | 13 | $ | 40 | $ | 5,337 | $ | 368 | $ | 1 | $ | 149 | $ | 5,908 | ||||||||||||||
Ending balance – collectively evaluated for impairment | 3,584 | 3,804 | 8,631 | 3,606 | 524 | 962 | 21,111 | |||||||||||||||||||||
Balance at end of period | $ | 3,597 | $ | 3,844 | $ | 13,968 | $ | 3,974 | $ | 525 | $ | 1,111 | $ | 27,019 |
December 31, 2017 | ||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||
Construction | 1-4 Family Residential | Commercial | Commercial Loans | Municipal Loans | Loans to Individuals | Total | ||||||||||||||||||||||
Ending balance – individually evaluated for impairment (1) | $ | 12 | $ | 14 | $ | 14 | $ | 252 | $ | 10 | $ | 51 | $ | 353 | ||||||||||||||
Ending balance – collectively evaluated for impairment | 3,664 | 2,431 | 10,807 | 1,842 | 850 | 834 | 20,428 | |||||||||||||||||||||
Balance at end of period | $ | 3,676 | $ | 2,445 | $ | 10,821 | $ | 2,094 | $ | 860 | $ | 885 | $ | 20,781 |
(1) | The allowance for loan loss on PCI loans totaled $302,000 as of December 31, 2018. There was no allowance for loan losses associated with PCI loans as of December 31, 2017. |
December 31, 2018 | ||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||
Construction | 1-4 Family Residential | Commercial | Commercial Loans | Municipal Loans | Loans to Individuals | Total | ||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 12 | $ | 1,215 | $ | 33,013 | $ | 1,394 | $ | 429 | $ | 184 | $ | 36,247 | ||||||||||||||
Loans collectively evaluated for impairment | 507,564 | 782,614 | 1,128,220 | 353,036 | 352,941 | 105,775 | 3,230,150 | |||||||||||||||||||||
Purchased credit impaired loans (1) | 156 | 10,670 | 32,885 | 2,219 | — | 472 | 46,402 | |||||||||||||||||||||
Total ending loan balance | $ | 507,732 | $ | 794,499 | $ | 1,194,118 | $ | 356,649 | $ | 353,370 | $ | 106,431 | $ | 3,312,799 |
December 31, 2017 | ||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||
Construction | 1-4 Family Residential | Commercial | Commercial Loans | Municipal Loans | Loans to Individuals | Total | ||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 86 | $ | 1,581 | $ | 895 | $ | 1,429 | $ | 502 | $ | 205 | $ | 4,698 | ||||||||||||||
Loans collectively evaluated for impairment | 475,505 | 797,111 | 1,232,327 | 259,745 | 345,296 | 134,441 | 3,244,425 | |||||||||||||||||||||
Purchased credit impaired loans | 276 | 6,649 | 31,937 | 5,248 | — | 1,123 | 45,233 | |||||||||||||||||||||
Total ending loan balance | $ | 475,867 | $ | 805,341 | $ | 1,265,159 | $ | 266,422 | $ | 345,798 | $ | 135,769 | $ | 3,294,356 |
December 31, 2018 | ||||||||||||||||||||||||
Pass | Pass Watch (1) | Special Mention (1) | Substandard (1) | Doubtful (1) | Total | |||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||
Construction | $ | 507,529 | $ | 163 | $ | — | $ | 28 | $ | 12 | $ | 507,732 | ||||||||||||
1-4 Family Residential | 787,516 | 37 | 100 | 5,489 | 1,357 | 794,499 | ||||||||||||||||||
Commercial | 1,067,874 | 11,479 | 26,490 | 87,767 | 508 | 1,194,118 | ||||||||||||||||||
Commercial Loans | 349,495 | 520 | 3,189 | 2,988 | 457 | 356,649 | ||||||||||||||||||
Municipal Loans | 353,370 | — | — | — | — | 353,370 | ||||||||||||||||||
Loans to Individuals | 105,536 | 4 | 4 | 678 | 209 | 106,431 | ||||||||||||||||||
Total | $ | 3,171,320 | $ | 12,203 | $ | 29,783 | $ | 96,950 | $ | 2,543 | $ | 3,312,799 |
December 31, 2017 | ||||||||||||||||||||||||
Pass | Pass Watch (1) | Special Mention (1) | Substandard (1) | Doubtful(1) | Total | |||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||
Construction | $ | 471,446 | $ | 3,329 | $ | 77 | $ | 982 | $ | 33 | $ | 475,867 | ||||||||||||
1-4 Family Residential | 796,639 | 559 | 857 | 6,610 | 676 | 805,341 | ||||||||||||||||||
Commercial | 1,136,576 | 26,275 | 25,301 | 76,625 | 382 | 1,265,159 | ||||||||||||||||||
Commercial Loans | 247,430 | 9,625 | 3,956 | 5,203 | 208 | 266,422 | ||||||||||||||||||
Municipal Loans | 344,366 | — | 930 | 502 | — | 345,798 | ||||||||||||||||||
Loans to Individuals | 134,694 | 20 | 102 | 707 | 246 | 135,769 | ||||||||||||||||||
Total | $ | 3,131,151 | $ | 39,808 | $ | 31,223 | $ | 90,629 | $ | 1,545 | $ | 3,294,356 |
(1) | Includes PCI loans comprised of $22,000 pass watch, $859,000 special mention, $3.9 million substandard and $1.2 million doubtful as of December 31, 2018. Includes PCI loans comprised of $362,000 pass watch, $6.0 million special mention, $10.5 million substandard and $925,000 doubtful as of December 31, 2017. |
December 31, 2018 | December 31, 2017 | |||||||
Nonaccrual loans (1) (2) | $ | 35,770 | $ | 2,937 | ||||
Accruing loans past due more than 90 days (1) | — | 1 | ||||||
Restructured loans (3) | 5,930 | 5,767 | ||||||
Other real estate owned | 1,206 | 1,613 | ||||||
Repossessed assets | — | 154 | ||||||
Total Nonperforming Assets | $ | 42,906 | $ | 10,472 |
(1) | Excludes PCI loans measured at fair value at acquisition if the timing and amount of cash flows expected to be collected from those sales can be reasonably estimated. The increase in nonaccrual loans was primarily due to the addition of four commercial real estate loans to nonaccrual status during the year, one of which was added during the fourth quarter. |
(2) | Includes $10.9 million and $1.3 million of restructured loans as of December 31, 2018 and 2017, respectively. |
(3) | Includes $3.1 million and $2.9 million in PCI loans restructured as of December 31, 2018 and 2017, respectively. |
Nonaccrual Loans | ||||||||
December 31, 2018 | December 31, 2017 | |||||||
Real Estate Loans: | ||||||||
Construction | $ | 12 | $ | 86 | ||||
1-4 Family Residential | 2,202 | 1,098 | ||||||
Commercial | 32,599 | 595 | ||||||
Commercial Loans | 639 | 903 | ||||||
Loans to Individuals | 318 | 255 | ||||||
Total | $ | 35,770 | $ | 2,937 |
December 31, 2018 | ||||||||||||
Unpaid Contractual Principal Balance | Recorded Investment | Related Allowance for Loan Losses | ||||||||||
Real Estate Loans: | ||||||||||||
Construction | $ | 182 | $ | 148 | $ | 13 | ||||||
1-4 Family Residential | 6,507 | 5,923 | 40 | |||||||||
Commercial | 36,457 | 34,744 | 5,337 | |||||||||
Commercial Loans | 2,874 | 2,366 | 368 | |||||||||
Municipal Loans | 429 | 429 | 1 | |||||||||
Loans to Individuals | 825 | 657 | 149 | |||||||||
Total (1) | $ | 47,274 | $ | 44,267 | $ | 5,908 |
December 31, 2017 | ||||||||||||
Unpaid Contractual Principal Balance | Recorded Investment | Related Allowance for Loan Losses | ||||||||||
Real Estate Loans: | ||||||||||||
Construction | $ | 91 | $ | 86 | $ | 12 | ||||||
1-4 Family Residential | 4,141 | 3,952 | 14 | |||||||||
Commercial | 1,353 | 1,199 | 14 | |||||||||
Commercial Loans | 1,665 | 1,605 | 252 | |||||||||
Municipal Loans | 502 | 502 | 10 | |||||||||
Loans to Individuals | 237 | 205 | 51 | |||||||||
Total (1) | $ | 7,989 | $ | 7,549 | $ | 353 |
(1) | Includes $8.0 million and $2.9 million of PCI loans that experienced deterioration in credit quality subsequent to the acquisition date as of December 31, 2018 and December 31, 2017, respectively. |
December 31, 2018 | ||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Current (1) | Total | |||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||
Construction | $ | 627 | $ | 307 | $ | — | $ | 934 | $ | 506,798 | $ | 507,732 | ||||||||||||
1-4 Family Residential | 7,441 | 1,258 | 1,335 | 10,034 | 784,465 | 794,499 | ||||||||||||||||||
Commercial | 10,663 | 7,655 | — | 18,318 | 1,175,800 | 1,194,118 | ||||||||||||||||||
Commercial Loans | 1,946 | 705 | 591 | 3,242 | 353,407 | 356,649 | ||||||||||||||||||
Municipal Loans | — | — | — | — | 353,370 | 353,370 | ||||||||||||||||||
Loans to Individuals | 1,289 | 351 | 146 | 1,786 | 104,645 | 106,431 | ||||||||||||||||||
Total | $ | 21,966 | $ | 10,276 | $ | 2,072 | $ | 34,314 | $ | 3,278,485 | $ | 3,312,799 |
December 31, 2017 | ||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Current (1) | Total | |||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||
Construction | $ | 1,302 | $ | 1,530 | $ | 68 | $ | 2,900 | $ | 472,967 | $ | 475,867 | ||||||||||||
1-4 Family Residential | 8,508 | 1,574 | 862 | 10,944 | 794,397 | 805,341 | ||||||||||||||||||
Commercial | 1,357 | 24 | 5 | 1,386 | 1,263,773 | 1,265,159 | ||||||||||||||||||
Commercial Loans | 662 | 400 | 333 | 1,395 | 265,027 | 266,422 | ||||||||||||||||||
Municipal Loans | 422 | — | — | 422 | 345,376 | 345,798 | ||||||||||||||||||
Loans to Individuals | 1,526 | 373 | 93 | 1,992 | 133,777 | 135,769 | ||||||||||||||||||
Total | $ | 13,777 | $ | 3,901 | $ | 1,361 | $ | 19,039 | $ | 3,275,317 | $ | 3,294,356 |
(1) | Includes PCI loans measured at fair value at acquisition if the timing and amount of cash flows expected to be collected from those sales can be reasonably estimated. |
Years Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||
Construction | $ | 149 | $ | 7 | $ | 251 | $ | — | $ | 510 | $ | 22 | ||||||||||||
1-4 Family Residential | 4,193 | 208 | 4,264 | 197 | 3,247 | 169 | ||||||||||||||||||
Commercial | 26,186 | 65 | 1,338 | 30 | 4,490 | 63 | ||||||||||||||||||
Commercial Loans | 2,131 | 102 | 2,862 | 59 | 13,481 | 48 | ||||||||||||||||||
Municipal Loans | 474 | 26 | 545 | 30 | 612 | 33 | ||||||||||||||||||
Loans to Individuals | 250 | 9 | 244 | 9 | 257 | 9 | ||||||||||||||||||
Total | $ | 33,383 | $ | 417 | $ | 9,504 | $ | 325 | $ | 22,597 | $ | 344 |
December 31, 2018 | ||||||||||||||||||
Extend Amortization Period | Interest Rate Reductions | Combination | Total Modifications | Number of Contracts | ||||||||||||||
Real Estate Loans: | ||||||||||||||||||
1-4 Family Residential | $ | — | $ | 79 | $ | — | $ | 79 | 1 | |||||||||
Commercial | 10,398 | — | 274 | 10,672 | 3 | |||||||||||||
Commercial Loans | 211 | — | 215 | 426 | 13 | |||||||||||||
Loans to Individuals | 8 | 33 | 51 | 92 | 5 | |||||||||||||
Total | $ | 10,617 | $ | 112 | $ | 540 | $ | 11,269 | 22 |
December 31, 2017 | ||||||||||||||||||
Extend Amortization Period | Interest Rate Reductions | Combination | Total Modifications | Number of Contracts | ||||||||||||||
Commercial Loans | $ | 778 | $ | — | $ | 241 | $ | 1,019 | 4 | |||||||||
Loans to Individuals | 23 | — | 52 | 75 | 6 | |||||||||||||
Total | $ | 801 | $ | — | $ | 293 | $ | 1,094 | 10 |
December 31, 2018 | December 31, 2017 | ||||||
Outstanding principal balance (1) | $ | 51,388 | $ | 52,426 | |||
Carrying amount (1) | $ | 46,402 | $ | 45,233 |
December 31, 2018 | December 31, 2017 | ||||||
Balance at beginning of period | $ | 18,721 | $ | 2,480 | |||
Additions due to acquisition | — | 15,389 | |||||
Changes in expected cash flows not affecting non-accretable differences | (1,445 | ) | — | ||||
Reclassifications (to) from nonaccretable discount | 1,211 | 1,720 | |||||
Accretion | (3,433 | ) | (868 | ) | |||
Balance at end of period | $ | 15,054 | $ | 18,721 |
December 31, 2018 | December 31, 2017 | |||||||
(in thousands) | ||||||||
Premises | $ | 166,128 | $ | 158,817 | ||||
Furniture and equipment | 41,810 | 40,565 | ||||||
207,938 | 199,382 | |||||||
Less: accumulated depreciation | 71,966 | 65,742 | ||||||
Total | $ | 135,972 | $ | 133,640 |
December 31, 2018 | December 31, 2017 | |||||||
(in thousands) | ||||||||
Noninterest bearing demand deposits: | ||||||||
Private accounts | $ | 967,096 | $ | 995,685 | ||||
Public accounts | 27,584 | 41,716 | ||||||
Total noninterest bearing demand deposits | 994,680 | 1,037,401 | ||||||
Interest bearing deposits: | ||||||||
Private accounts: | ||||||||
Savings deposits | 360,007 | 356,857 | ||||||
Money market demand deposits | 440,442 | 443,015 | ||||||
Platinum money market deposits | 344,546 | 308,105 | ||||||
Interest bearing checking | 662,911 | 686,816 | ||||||
NOW demand deposits | 23,451 | 20,142 | ||||||
Certificates and other time deposits of $250,000 or more | 84,564 | 87,195 | ||||||
Certificates and other time deposits under $250,000 | 680,282 | 534,220 | ||||||
Total private accounts | 2,596,203 | 2,436,350 | ||||||
Public accounts: | ||||||||
Savings deposits | 320 | 304 | ||||||
Money market demand deposits | 15,513 | 19,560 | ||||||
Platinum money market deposits | 329,695 | 360,006 | ||||||
Interest bearing checking | 56,694 | 55,902 | ||||||
NOW demand deposits | 141,200 | 114,401 | ||||||
Certificates and other time deposits of $250,000 or more | 281,204 | 462,941 | ||||||
Certificates and other time deposits under $250,000 | 9,521 | 28,582 | ||||||
Total public accounts | 834,147 | 1,041,696 | ||||||
Total interest bearing deposits | 3,430,350 | 3,478,046 | ||||||
Total deposits | $ | 4,425,030 | $ | 4,515,447 |
2019 | $ | 845,661 | |
2020 | 116,542 | ||
2021 | 42,254 | ||
2022 | 20,003 | ||
2023 | 25,931 | ||
2024 and thereafter | 5,180 | ||
$ | 1,055,571 |
December 31, 2018 | December 31, 2017 | |||||||
Federal funds purchased and repurchase agreements: | ||||||||
Balance at end of period | $ | 36,810 | $ | 9,498 | ||||
Average amount outstanding during the period (1) | 10,880 | 8,120 | ||||||
Maximum amount outstanding during the period (2) | 36,810 | 9,498 | ||||||
Weighted average interest rate during the period (3) | 1.4 | % | 0.2 | % | ||||
Interest rate at end of period (4) | 2.1 | % | 0.2 | % | ||||
FHLB borrowings: | ||||||||
Balance at end of period | $ | 719,065 | $ | 1,017,361 | ||||
Average amount outstanding during the period (1) | 720,785 | 1,222,033 | ||||||
Maximum amount outstanding during the period (2) | 957,231 | 1,414,453 | ||||||
Weighted average interest rate during the period (3) | 1.8 | % | 1.2 | % | ||||
Interest rate at end of period (4) | 2.3 | % | 1.4 | % |
(1) | The average amount outstanding during the period was computed by dividing the total daily outstanding principal balances by the number of days in the period. |
(2) | The maximum amount outstanding at any month-end during the period. |
(3) | The weighted average interest rate during the period was computed by dividing the actual interest expense by the average amount outstanding during the period. The weighted average interest rate on the FHLB borrowings includes the effect of interest rate swaps. |
(4) | Stated rate. |
Payments Due by Period | ||||||||||||||||||||||||||||
Less than 1 Year | 1-2 Years | 2-3 Years | 3-4 Years | 4-5 Years | Thereafter | Total | ||||||||||||||||||||||
Federal funds purchased and repurchase agreements | $ | 36,686 | $ | 124 | $ | — | $ | — | $ | — | $ | — | $ | 36,810 | ||||||||||||||
FHLB borrowings | 336,502 | 365,165 | 11,483 | — | — | 5,915 | 719,065 | |||||||||||||||||||||
Total obligations | $ | 373,188 | $ | 365,289 | $ | 11,483 | $ | — | $ | — | $ | 5,915 | $ | 755,875 |
December 31, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
Subordinated notes: (1) | |||||||
5.50% Subordinated Notes, net of unamortized debt issuance costs (2) | $ | 98,407 | $ | 98,248 | |||
Total Subordinated notes | 98,407 | 98,248 | |||||
Trust preferred subordinated debentures: (3) | |||||||
Southside Statutory Trust III, net of unamortized debt issuance costs (4) | 20,554 | 20,549 | |||||
Southside Statutory Trust IV | 23,196 | 23,196 | |||||
Southside Statutory Trust V | 12,887 | 12,887 | |||||
Magnolia Trust Company I | 3,609 | 3,609 | |||||
Total Trust preferred subordinated debentures | 60,246 | 60,241 | |||||
Total Long-term debt | $ | 158,653 | $ | 158,489 |
(1) | This debt consists of subordinated notes with a remaining maturity greater than one year that qualify under the risk-based capital guidelines as Tier 2 capital, subject to certain limitations. |
(2) | The unamortized discount and debt issuance costs reflected in the carrying amount of the subordinated notes totaled approximately $1.6 million at December 31, 2018 and $1.8 million at December 31, 2017. |
(3) | This debt consists of trust preferred securities that qualify under the risk-based capital guidelines as Tier 1 capital, subject to certain limitations. |
(4) | The unamortized debt issuance costs reflected in the carrying amount of the Southside Statutory Trust III junior subordinated debentures totaled $65,000 at December 31, 2018 and $70,000 at December 31, 2017. |
Date Issued | Amount Issued | Fixed or Floating Rate | Interest Rate | Maturity Date | |||||||
5.50% Subordinated Notes | September 19, 2016 | $ | 100,000 | Fixed-to-Floating | 5.50% | September 30, 2026 | |||||
Southside Statutory Trust III | September 4, 2003 | $ | 20,619 | Floating | 3 month LIBOR + 2.94% | September 4, 2033 | |||||
Southside Statutory Trust IV | August 8, 2007 | $ | 23,196 | Floating | 3 month LIBOR + 1.30% | October 30, 2037 | |||||
Southside Statutory Trust V | August 10, 2007 | $ | 12,887 | Floating | 3 month LIBOR + 2.25% | September 15, 2037 | |||||
Magnolia Trust Company I (1) | October 10, 2007 | $ | 3,609 | Floating | 3 month LIBOR + 1.80% | November 23, 2035 |
(1) | On October 10, 2007, as part of an acquisition we assumed $3.6 million of floating rate junior subordinated debentures issued in 2005 to Magnolia Trust Company I. |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | Restoration Plan | Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | Restoration Plan | Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | Restoration Plan | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||
Change in Projected Benefit Obligation: | ||||||||||||||||||||||||||||||||||||
Benefit obligation at end of prior year | $ | 94,276 | $ | 4,392 | $ | 14,642 | $ | 88,071 | $ | 4,238 | $ | 12,723 | $ | 80,040 | $ | 4,685 | $ | 12,024 | ||||||||||||||||||
Service cost | 1,548 | — | 293 | 1,398 | — | 247 | 1,375 | — | 207 | |||||||||||||||||||||||||||
Interest cost | 3,392 | 163 | 597 | 3,601 | 177 | 567 | 3,731 | 212 | 535 | |||||||||||||||||||||||||||
Actuarial (gain) loss | (9,399 | ) | (480 | ) | 344 | 5,404 | 418 | 1,751 | 4,978 | 275 | 237 | |||||||||||||||||||||||||
Benefits paid | (3,622 | ) | (183 | ) | (576 | ) | (4,128 | ) | (43 | ) | (646 | ) | (3,632 | ) | (31 | ) | (280 | ) | ||||||||||||||||||
Expenses paid | (203 | ) | (19 | ) | — | (70 | ) | (47 | ) | — | (91 | ) | (39 | ) | — | |||||||||||||||||||||
Plan amendments | — | — | — | — | — | — | 121 | — | — | |||||||||||||||||||||||||||
Settlements | — | — | — | — | (351 | ) | — | — | (864 | ) | — | |||||||||||||||||||||||||
Special and contractual termination benefits | — | — | — | — | — | — | 1,549 | — | — | |||||||||||||||||||||||||||
Benefit obligation at end of year | 85,992 | 3,873 | 15,300 | 94,276 | 4,392 | 14,642 | 88,071 | 4,238 | 12,723 | |||||||||||||||||||||||||||
Change in Plan Assets: | ||||||||||||||||||||||||||||||||||||
Fair value of plan assets at end of prior year | 91,233 | 4,031 | — | 85,293 | 2,993 | — | 76,355 | 3,740 | — | |||||||||||||||||||||||||||
Actual return | (4,497 | ) | (259 | ) | — | 8,138 | 479 | — | 7,661 | 187 | — | |||||||||||||||||||||||||
Employer contributions | 2,000 | 500 | 576 | 2,000 | 1,000 | 646 | 5,000 | — | 280 | |||||||||||||||||||||||||||
Benefits paid | (3,622 | ) | (183 | ) | (576 | ) | (4,128 | ) | (43 | ) | (646 | ) | (3,632 | ) | (31 | ) | (280 | ) | ||||||||||||||||||
Expenses paid | (203 | ) | (19 | ) | — | (70 | ) | (47 | ) | — | (91 | ) | (39 | ) | — | |||||||||||||||||||||
Settlements | — | — | — | — | (351 | ) | — | — | (864 | ) | — | |||||||||||||||||||||||||
Fair value of plan assets at end of year | 84,911 | 4,070 | — | 91,233 | 4,031 | — | 85,293 | 2,993 | — | |||||||||||||||||||||||||||
(Un)Funded status at end of year | (1,081 | ) | 197 | (15,300 | ) | (3,043 | ) | (361 | ) | (14,642 | ) | (2,778 | ) | (1,245 | ) | (12,723 | ) | |||||||||||||||||||
Accrued benefit (liability) asset recognized | $ | (1,081 | ) | $ | 197 | $ | (15,300 | ) | $ | (3,043 | ) | $ | (361 | ) | $ | (14,642 | ) | $ | (2,778 | ) | $ | (1,245 | ) | $ | (12,723 | ) | ||||||||||
Accumulated benefit obligation at end of year | $ | 77,888 | $ | 3,873 | $ | 13,403 | $ | 83,802 | $ | 4,392 | $ | 13,246 | $ | 77,639 | $ | 4,238 | $ | 11,133 |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | Restoration Plan | Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | Restoration Plan | Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | Restoration Plan | ||||||||||||||||||||||||||||
Recognition of net loss | $ | 1,512 | $ | — | $ | 677 | $ | 1,312 | $ | — | $ | 301 | $ | 1,642 | $ | — | $ | 186 | ||||||||||||||||||
Recognition of prior service (credit) cost | (14 | ) | — | 7 | (14 | ) | — | 6 | (14 | ) | — | 6 | ||||||||||||||||||||||||
Recognition of loss (gain) due to settlement | — | — | — | — | 8 | — | — | (8 | ) | — | ||||||||||||||||||||||||||
Net (loss) gain occurring during the year | (1,581 | ) | (69 | ) | (344 | ) | (3,317 | ) | (150 | ) | (1,751 | ) | (2,541 | ) | (354 | ) | (237 | ) | ||||||||||||||||||
Net prior service cost occurring during the year | — | — | — | — | — | — | (121 | ) | — | — | ||||||||||||||||||||||||||
(83 | ) | (69 | ) | 340 | (2,019 | ) | (142 | ) | (1,444 | ) | (1,034 | ) | (362 | ) | (45 | ) | ||||||||||||||||||||
Deferred tax benefit (expense) | 17 | 14 | (71 | ) | 241 | 30 | 259 | 362 | 127 | 16 | ||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | $ | (66 | ) | $ | (55 | ) | $ | 269 | $ | (1,778 | ) | $ | (112 | ) | $ | (1,185 | ) | $ | (672 | ) | $ | (235 | ) | $ | (29 | ) |
December 31, 2018 | December 31, 2017 | |||||||||||||||||||||||
Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | Restoration Plan | Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | Restoration Plan | |||||||||||||||||||
Net loss | $ | 1,512 | $ | — | $ | 677 | $ | 1,312 | $ | — | $ | 301 | ||||||||||||
Prior service (credit) cost | (14 | ) | — | 7 | (14 | ) | — | 6 | ||||||||||||||||
Loss (gain) recognized due to settlement | — | — | — | — | 8 | — | ||||||||||||||||||
1,498 | — | 684 | 1,298 | 8 | 307 | |||||||||||||||||||
Deferred tax (expense) benefit | (315 | ) | — | (144 | ) | (454 | ) | (2 | ) | (107 | ) | |||||||||||||
Accumulated other comprehensive income (loss), net of tax | $ | 1,183 | $ | — | $ | 540 | $ | 844 | $ | 6 | $ | 200 |
December 31, 2018 | December 31, 2017 | |||||||||||||||||||||||
Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | Restoration Plan | Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | Restoration Plan | |||||||||||||||||||
Net (loss) gain | $ | (28,928 | ) | $ | (171 | ) | $ | (3,984 | ) | $ | (28,859 | ) | $ | (102 | ) | $ | (4,317 | ) | ||||||
Prior service cost | (123 | ) | — | (24 | ) | (109 | ) | — | (31 | ) | ||||||||||||||
(29,051 | ) | (171 | ) | (4,008 | ) | (28,968 | ) | (102 | ) | (4,348 | ) | |||||||||||||
Deferred tax benefit (expense) | 6,100 | 35 | 841 | 9,674 | 15 | 1,276 | ||||||||||||||||||
Reclassification of certain deferred tax effects (1) | — | — | — | (3,591 | ) | 6 | (364 | ) | ||||||||||||||||
Accumulated other comprehensive (loss) income, net of tax | $ | (22,951 | ) | $ | (136 | ) | $ | (3,167 | ) | $ | (22,885 | ) | $ | (81 | ) | $ | (3,436 | ) |
(1) | Amounts reclassified to retained earnings due to early adoption of ASU 2018-02. See “Note 1 – Summary of Significant Accounting and Reporting Policies” for further information. |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Defined Benefit Pension Plan: | ||||||||||||
Service cost | $ | 1,548 | $ | 1,398 | $ | 1,375 | ||||||
Interest cost | 3,392 | 3,601 | 3,731 | |||||||||
Expected return on assets | (6,483 | ) | (6,050 | ) | (5,224 | ) | ||||||
Net loss amortization | 1,512 | 1,312 | 1,642 | |||||||||
Prior service credit amortization | (14 | ) | (14 | ) | (14 | ) | ||||||
Special and contractual termination benefits | — | — | 1,549 | |||||||||
Net periodic benefit cost | $ | (45 | ) | $ | 247 | $ | 3,059 | |||||
Defined Benefit Pension Plan Acquired: | ||||||||||||
Service cost | $ | — | $ | — | $ | — | ||||||
Interest cost | 163 | 177 | 212 | |||||||||
Expected return on assets | (290 | ) | (212 | ) | (265 | ) | ||||||
Net loss amortization | — | — | — | |||||||||
Prior service credit amortization | — | — | — | |||||||||
Loss (gain) recognized due to settlement | — | 8 | (8 | ) | ||||||||
Net periodic benefit cost | $ | (127 | ) | $ | (27 | ) | $ | (61 | ) | |||
Restoration Plan: | ||||||||||||
Service cost | $ | 293 | $ | 247 | $ | 207 | ||||||
Interest cost | 597 | 567 | 535 | |||||||||
Net loss amortization | 677 | 301 | 186 | |||||||||
Prior service cost amortization | 7 | 6 | 6 | |||||||||
Net periodic benefit cost | $ | 1,574 | $ | 1,121 | $ | 934 |
Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | Restoration Plan | ||||||||||
Net loss | $ | 1,774 | $ | — | $ | 398 | ||||||
Prior service (credit) cost | (14 | ) | — | 6 | ||||||||
1,760 | — | 404 | ||||||||||
Deferred tax benefit | (370 | ) | — | (85 | ) | |||||||
Accumulated other comprehensive loss, net of tax | $ | 1,390 | $ | — | $ | 319 |
December 31, 2018 | December 31, 2017 | |||||||||||||||||
Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | Restoration Plan | Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | Restoration Plan | |||||||||||||
Discount rate | 4.32 | % | 4.32 | % | 4.32 | % | 3.71 | % | 3.71 | % | 3.71 | % | ||||||
Compensation increase rate | 3.50 | % | — | 3.50 | % | 3.50 | % | — | 3.50 | % |
Year Ended December 31, | |||||||||
2018 | 2017 | 2016 | |||||||
Defined Benefit Pension Plan: | |||||||||
Discount rate | 3.71 | % | 4.23 | % | 4.56 | % | |||
Expected long-term rate of return on plan assets | 7.25 | % | 7.25 | % | 7.25 | % | |||
Compensation increase rate | 3.50 | % | 3.50 | % | 3.50 | % | |||
Defined Benefit Pension Plan Acquired | |||||||||
Discount rate | 3.71 | % | 4.23 | % | 4.56 | % | |||
Expected long-term rate of return on plan assets | 7.25 | % | 7.25 | % | 7.25 | % | |||
Compensation increase rate | — | — | — | ||||||
Restoration Plan: | |||||||||
Discount rate | 3.71 | % | 4.23 | % | 4.56 | % | |||
Compensation increase rate | 3.50 | % | 3.50 | % | 3.50 | % |
December 31, 2018 | December 31, 2017 | |||||||||||||||
Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | |||||||||||||
Level 1: | ||||||||||||||||
Cash | $ | 278 | $ | — | $ | 423 | $ | — | ||||||||
Equity Securities: | ||||||||||||||||
U.S. large cap (1) | 5,204 | — | 6,198 | — | ||||||||||||
U.S. mid cap (2) | 18,913 | — | 21,379 | — | ||||||||||||
U.S. small cap (3) | 9,900 | — | 10,706 | — | ||||||||||||
Fixed Income Securities: | ||||||||||||||||
International developed (4) | 6,733 | — | 8,601 | — | ||||||||||||
International emerging (2) | 3,464 | — | 4,308 | — | ||||||||||||
Level 2: | ||||||||||||||||
Cash Equivalents | 15,025 | — | 13,256 | — | ||||||||||||
Equity Securities: | ||||||||||||||||
U.S. large cap (1) | — | 1,360 | — | 1,440 | ||||||||||||
U.S. mid cap (2) | — | 152 | — | 167 | ||||||||||||
U.S. small cap (3) | — | 72 | — | 84 | ||||||||||||
International (5) | — | 735 | — | 712 | ||||||||||||
Fixed Income Securities: | ||||||||||||||||
Corporate bonds (6) | 952 | 407 | 1,118 | 378 | ||||||||||||
U.S. government agencies (6) | 20,182 | — | 19,303 | — | ||||||||||||
Municipal bonds (6) | 3,991 | — | 5,595 | — | ||||||||||||
U.S. agency mortgage-backed securities (7) | 269 | — | 346 | — | ||||||||||||
Asset-backed securities (8) | — | 743 | — | 717 | ||||||||||||
Real estate (9) | — | 286 | — | 241 | ||||||||||||
Balanced Asset Allocation (10) | — | 84 | — | 81 | ||||||||||||
Other (11) | — | 231 | — | 211 | ||||||||||||
Total fair value of plan assets | $ | 84,911 | $ | 4,070 | $ | 91,233 | $ | 4,031 |
(1) | For the defined benefit pension plan, this category is comprised of individual securities that are actively managed and a broadly diversified “passive” mutual fund. The Acquired Plan assets in this category consist of pooled separate accounts invested in mutual funds and domestic stocks. |
(2) | For the defined benefit pension plan, this category is comprised of broadly diversified “passive” mutual funds. The Acquired Plan assets in this category consist of pooled separate accounts invested in mutual funds and domestic stocks. |
(3) | For the defined benefit pension plan, this category is comprised of broadly diversified “passive” mutual funds and shares of Southside Bancshares stock that is owned in the Plan. The Acquired Plan assets in this category consist of pooled separate accounts invested in mutual funds and domestic stocks. |
(4) | This category is comprised of individual securities that are actively managed and a broadly diversified “passive” mutual fund. |
(5) | This category is comprised of pooled separate accounts invested in mutual funds and international stocks. |
(6) | For the defined benefit pension plan, this category is comprised of individual investment grade securities that are generally held to maturity in the Plan. The Acquired Plan assets in this category consist of pooled separate accounts invested in investment grade and below investment grade bonds. |
(7) | This category is comprised of individual securities that are generally not held to maturity. |
(8) | This category is mainly comprised of a pooled separate account invested in asset backed securities, residential mortgage backed securities, commercial mortgage backed securities and corporate bonds. |
(9) | This category is comprised of a pooled separate account invested in commercial real estate and includes mortgage loans which are backed by the associated properties. |
(10) | This category is comprised of a pooled separate account invested in a single mutual fund invested in a combination of fixed income and equity investment options. |
(11) | This category is comprised of a pooled separate account invested in a broad range of instruments including, but not limited to, equities, bonds, currencies, convertible securities and derivatives such as futures, options, swaps and forwards. |
Defined Benefit Pension Plan | Defined Benefit Pension Plan Acquired | Restoration Plan | |||||||||
2019 | $ | 3,836 | $ | 66 | $ | 723 | |||||
2020 | 3,951 | 229 | 780 | ||||||||
2021 | 4,142 | 129 | 916 | ||||||||
2022 | 4,354 | 90 | 1,031 | ||||||||
2023 | 4,520 | 92 | 1,005 | ||||||||
2024 through 2028 | 25,008 | 897 | 5,521 | ||||||||
$ | 45,811 | $ | 1,503 | $ | 9,976 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
New shares issued from available authorized shares | — | 48,311 | 108,225 | ||||||||
New shares issued from available treasury shares | 140,692 | 111,045 | — | ||||||||
Total | 140,692 | 159,356 | 108,225 | ||||||||
Proceeds from stock option exercises | $ | 2,653 | $ | 2,692 | $ | 1,663 |
Years Ended December 31, | ||||||
2018 | 2017 | 2016 | ||||
Weighted-average grant date fair value per option | $6.78 | — | $7.18 | |||
Weighted-average assumptions: | ||||||
Risk-free interest rates | 2.81% | — | 1.79% | |||
Expected dividend yield | 1.10% | — | 2.69% | |||
Expected volatility factors of the market price of Southside Bancshares common stock | 25.41% | — | 27.02% | |||
Expected option life (in years) | 6.2 | — | 6.2 |
Restricted Stock Units Outstanding | Stock Options Outstanding | |||||||||||||||||
Number of Shares | Weighted- Average Grant-Date Fair Value | Number of Shares | Weighted- Average Exercise Price | Weighted- Average Grant-Date Fair Value | ||||||||||||||
Balance, January 1, 2018 | 78,253 | $ | 32.04 | 690,312 | $ | 26.02 | $ | 6.19 | ||||||||||
Granted | 64,358 | 34.28 | 356,849 | 34.52 | 6.78 | |||||||||||||
Stock options exercised | — | — | (115,277 | ) | 23.02 | 5.69 | ||||||||||||
Stock awards vested | (29,752 | ) | 31.14 | — | — | — | ||||||||||||
Forfeited | (3,109 | ) | 32.93 | (16,980 | ) | 32.51 | 6.67 | |||||||||||
Canceled/expired | — | — | (5,553 | ) | 30.06 | 6.68 | ||||||||||||
Balance, December 31, 2018 | 109,750 | $ | 33.57 | 909,351 | $ | 29.59 | $ | 6.47 |
Options Outstanding | Options Exercisable | |||||||||||||||||||
Range of Exercise Prices | Number of Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life in Years | Number of Shares | Weighted- Average Exercise Price | |||||||||||||||
$ | 14.67 | - | $20.00 | 110,291 | $ | 15.89 | 3.03 | 110,291 | $ | 15.89 | ||||||||||
20.01 | - | 25.00 | 106,826 | 22.92 | 5.43 | 82,747 | 23.01 | |||||||||||||
25.01 | - | 30.00 | 202,009 | 26.68 | 6.47 | 136,613 | 26.58 | |||||||||||||
30.01 | - | 35.00 | 346,965 | 34.52 | 9.41 | — | — | |||||||||||||
35.01 | - | 37.28 | 143,260 | 37.28 | 7.90 | 76,710 | 37.28 | |||||||||||||
Total | 909,351 | $ | 29.59 | 7.28 | 406,361 | $ | 24.97 |
December 31, 2018 | December 31, 2017 | |||||||||||||||||||||||
Estimated Fair Value | Estimated Fair Value | |||||||||||||||||||||||
Notional Amount (1) | Asset Derivative | Liability Derivative | Notional Amount (1) | Asset Derivative | Liability Derivative | |||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||
Swaps-Cash Flow Hedge-Financial institution counterparties | $ | 270,000 | $ | 9,388 | $ | 457 | $ | 240,000 | $ | 7,922 | $ | 22 | ||||||||||||
Swaps-Fair Value Hedge-Financial institution counterparties | 21,100 | — | 657 | — | — | — | ||||||||||||||||||
Derivatives designated as non-hedging instruments | ||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||
Swaps-Financial institution counterparties | 93,967 | 1,119 | 1,087 | 67,220 | 92 | 612 | ||||||||||||||||||
Swaps-Customer counterparties | 93,967 | 1,087 | 1,119 | 67,220 | 612 | 92 | ||||||||||||||||||
Gross derivatives | 11,594 | 3,320 | 8,626 | 726 | ||||||||||||||||||||
Offsetting derivative assets/liabilities | (2,201 | ) | (2,201 | ) | (114 | ) | (114 | ) | ||||||||||||||||
Cash collateral received/posted | (8,306 | ) | — | (7,900 | ) | (520 | ) | |||||||||||||||||
Net derivatives included in the consolidated balance sheets (2) | $ | 1,087 | $ | 1,119 | $ | 612 | $ | 92 |
(1) | Notional amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the consolidated balance sheets. |
(2) | Net derivative assets are included in other assets and net derivative liabilities are included in other liabilities on the consolidated balance sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and our credit risk. We had no credit exposure related to interest rate swaps with financial institutions and $1.1 million related to interest rate swaps with customers at December 31, 2018. We had net credit exposure of $30,000 related to interest rate swaps with financial institutions and $612,000 related to interest rate swaps with customers at December 31, 2017. The credit risk associated with customer transactions is partially mitigated as these are generally secured by the non-cash collateral securing the underlying transaction being hedged. |
December 31, 2018 | December 31, 2017 | |||||||||||||||||||||||
Weighted Average | Weighted Average | |||||||||||||||||||||||
Notional Amount | Remaining Maturity (in years) | Receive Rate | Pay Rate | Notional Amount | Remaining Maturity (in years) | Receive Rate | Pay Rate | |||||||||||||||||
Swaps-Cash Flow Hedge | ||||||||||||||||||||||||
Financial institution counterparties | $ | 270,000 | 4.8 | 2.45 | % | 1.58 | % | $ | 240,000 | 5.3 | 1.44 | % | 1.43 | % | ||||||||||
Swaps-Fair Value Hedge | ||||||||||||||||||||||||
Financial institution counterparties | 21,100 | 7.5 | 2.56 | 3.00 | — | — | — | — | ||||||||||||||||
Swaps-Non-Hedging | ||||||||||||||||||||||||
Financial institution counterparties | 93,967 | 11.6 | 2.36 | 2.58 | 67,220 | 12.7 | 1.39 | 2.37 | ||||||||||||||||
Customer counterparties | 93,967 | 11.6 | 2.58 | 2.36 | 67,220 | 12.7 | 2.37 | 1.39 |
December 31, 2018 | |||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||
Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Recurring fair value measurements | |||||||||||||||
Investment Securities: | |||||||||||||||
State and Political Subdivisions | $ | 716,601 | $ | — | $ | 716,601 | $ | — | |||||||
Other Stocks and Bonds | 2,709 | — | 2,709 | — | |||||||||||
Mortgage-backed Securities: (1) | |||||||||||||||
Residential | 732,972 | — | 732,972 | — | |||||||||||
Commercial | 537,154 | — | 537,154 | — | |||||||||||
Equity Investments: | |||||||||||||||
Equity Investments (2) | 5,791 | 5,791 | — | — | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate swaps | 11,594 | — | 11,594 | — | |||||||||||
Total asset recurring fair value measurements | $ | 2,006,821 | $ | 5,791 | $ | 2,001,030 | $ | — | |||||||
Derivative liabilities: | |||||||||||||||
Interest rate swaps | $ | 3,320 | $ | — | $ | 3,320 | $ | — | |||||||
Total liability recurring fair value measurements | $ | 3,320 | $ | — | $ | 3,320 | $ | — | |||||||
Nonrecurring fair value measurements | |||||||||||||||
Foreclosed assets | $ | 1,206 | $ | — | $ | — | $ | 1,206 | |||||||
Impaired loans (3) | 37,813 | — | — | 37,813 | |||||||||||
Total asset nonrecurring fair value measurements | $ | 39,019 | $ | — | $ | — | $ | 39,019 |
December 31, 2017 | |||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||
Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Recurring fair value measurements | |||||||||||||||
Investment Securities: | |||||||||||||||
U.S. Government Agency Debentures | $ | 108,869 | $ | — | $ | 108,869 | $ | — | |||||||
State and Political Subdivisions | 392,664 | — | 392,664 | — | |||||||||||
Other Stocks and Bonds | 5,055 | — | 5,055 | — | |||||||||||
Equity Investments (2) | 5,920 | 5,920 | — | — | |||||||||||
Mortgage-backed Securities: (1) | |||||||||||||||
Residential | 718,029 | — | 718,029 | — | |||||||||||
Commercial | 308,218 | — | 308,218 | — | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate swaps | 8,626 | — | 8,626 | — | |||||||||||
Total asset recurring fair value measurements | $ | 1,547,381 | $ | 5,920 | $ | 1,541,461 | $ | — | |||||||
Derivative liabilities: | |||||||||||||||
Interest rate swaps | $ | 726 | $ | — | $ | 726 | $ | — | |||||||
Total liability recurring fair value measurements | $ | 726 | $ | — | $ | 726 | $ | — | |||||||
Nonrecurring fair value measurements | |||||||||||||||
Foreclosed assets | $ | 1,767 | $ | — | $ | — | $ | 1,767 | |||||||
Impaired loans (3) | 6,536 | — | — | 6,536 | |||||||||||
Total asset nonrecurring fair value measurements | $ | 8,303 | $ | — | $ | — | $ | 8,303 |
(1) | All mortgage-backed securities are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
(2) | With the adoption of ASU 2016-01 on January 1, 2018, these investments are included in equity investments on our consolidated balance sheets. The guidance was applied on a prospective approach resulting in prior-periods no longer being comparable. See “Note 1 - Summary of Significant Accounting and Reporting Policies” for further information. |
(3) | Impaired loans represent collateral-dependent loans with a specific valuation allowance. Losses on these loans represent charge-offs which are netted against the allowance for loan losses. |
Estimated Fair Value | |||||||||||||||||||
December 31, 2018 | Carrying Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 120,719 | $ | 120,719 | $ | 120,719 | $ | — | $ | — | |||||||||
Investment Securities: | |||||||||||||||||||
Held to maturity, at carrying value | 3,083 | 3,046 | — | 3,046 | — | ||||||||||||||
Mortgage-backed Securities: | |||||||||||||||||||
Held to maturity, at carrying value | 159,848 | 156,735 | — | 156,735 | — | ||||||||||||||
FHLB stock, at cost | 32,583 | 32,583 | — | 32,583 | — | ||||||||||||||
Equity investments | 6,302 | 6,302 | — | 6,302 | — | ||||||||||||||
Loans, net of allowance for loan losses | 3,285,780 | 3,251,923 | — | — | 3,251,923 | ||||||||||||||
Loans held for sale | 601 | 601 | — | 601 | — | ||||||||||||||
Financial Liabilities: | |||||||||||||||||||
Deposits | $ | 4,425,030 | $ | 4,417,902 | $ | — | $ | 4,417,902 | $ | — | |||||||||
Federal funds purchased and repurchase agreements | 36,810 | 36,810 | — | 36,810 | — | ||||||||||||||
FHLB borrowings | 719,065 | 708,904 | — | 708,904 | — | ||||||||||||||
Subordinated notes, net of unamortized debt issuance costs | 98,407 | 97,611 | — | 97,611 | — | ||||||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,246 | 54,729 | — | 54,729 | — |
Estimated Fair Value | |||||||||||||||||||
December 31, 2017 | Carrying Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 198,692 | $ | 198,692 | $ | 198,692 | $ | — | $ | — | |||||||||
Investment Securities: | |||||||||||||||||||
Held to maturity, at carrying value | 413,632 | 421,928 | — | 421,928 | — | ||||||||||||||
Mortgage-backed Securities: | |||||||||||||||||||
Held to maturity, at carrying value | 495,874 | 499,872 | — | 499,872 | — | ||||||||||||||
FHLB stock, at cost | 55,729 | 55,729 | — | 55,729 | — | ||||||||||||||
Equity investments | 5,821 | 5,821 | — | 5,821 | — | ||||||||||||||
Loans, net of allowance for loan losses | 3,273,575 | 3,269,316 | — | — | 3,269,316 | ||||||||||||||
Loans held for sale | 2,001 | 2,001 | — | 2,001 | — | ||||||||||||||
Financial Liabilities: | |||||||||||||||||||
Deposits | $ | 4,515,447 | $ | 4,506,133 | $ | — | $ | 4,506,133 | $ | — | |||||||||
Federal funds purchased and repurchase agreements | 9,498 | 9,498 | — | 9,498 | — | ||||||||||||||
FHLB borrowings | 1,017,361 | 1,008,292 | — | 1,008,292 | — | ||||||||||||||
Subordinated notes, net of unamortized debt issuance costs | 98,248 | 99,665 | — | 99,665 | — | ||||||||||||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,241 | 47,622 | — | 47,622 | — |
Actual | For Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Actions Provisions | |||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
December 31, 2018: | (dollars in thousands) | ||||||||||||||||||||
Common Equity Tier 1 (to Risk Weighted Assets) | |||||||||||||||||||||
Consolidated | $ | 568,283 | 14.77 | % | $ | 173,174 | 4.50 | % | N/A | N/A | |||||||||||
Bank Only | $ | 714,991 | 18.59 | % | $ | 173,095 | 4.50 | % | $ | 250,026 | 6.50 | % | |||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||
Consolidated | $ | 626,718 | 16.29 | % | $ | 230,899 | 6.00 | % | N/A | N/A | |||||||||||
Bank Only | $ | 714,991 | 18.59 | % | $ | 230,793 | 6.00 | % | $ | 307,725 | 8.00 | % | |||||||||
Total Capital (to Risk Weighted Assets) | |||||||||||||||||||||
Consolidated | $ | 754,034 | 19.59 | % | $ | 307,865 | 8.00 | % | N/A | N/A | |||||||||||
Bank Only | $ | 743,900 | 19.34 | % | $ | 307,725 | 8.00 | % | $ | 384,656 | 10.00 | % | |||||||||
Tier 1 Capital (to Average Assets) (1) | |||||||||||||||||||||
Consolidated | $ | 626,718 | 10.64 | % | $ | 235,689 | 4.00 | % | N/A | N/A | |||||||||||
Bank Only | $ | 714,991 | 12.14 | % | $ | 235,532 | 4.00 | % | $ | 294,415 | 5.00 | % | |||||||||
December 31, 2017: | |||||||||||||||||||||
Common Equity Tier 1 (to Risk Weighted Assets) | |||||||||||||||||||||
Consolidated | $ | 570,610 | 14.65 | % | $ | 175,216 | 4.50 | % | N/A | N/A | |||||||||||
Bank Only | $ | 711,157 | 18.27 | % | $ | 175,145 | 4.50 | % | $ | 252,987 | 6.50 | % | |||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||||||||
Consolidated | $ | 627,532 | 16.12 | % | $ | 233,621 | 6.00 | % | N/A | N/A | |||||||||||
Bank Only | $ | 711,157 | 18.27 | % | $ | 233,527 | 6.00 | % | $ | 311,369 | 8.00 | % | |||||||||
Total Capital (to Risk Weighted Assets) | |||||||||||||||||||||
Consolidated | $ | 748,532 | 19.22 | % | $ | 311,495 | 8.00 | % | N/A | N/A | |||||||||||
Bank Only | $ | 733,909 | 18.86 | % | $ | 311,369 | 8.00 | % | $ | 389,211 | 10.00 | % | |||||||||
Tier 1 Capital (to Average Assets) (1) | |||||||||||||||||||||
Consolidated | $ | 627,532 | 11.16 | % | $ | 224,844 | 4.00 | % | N/A | N/A | |||||||||||
Bank Only | $ | 711,157 | 12.66 | % | $ | 224,741 | 4.00 | % | $ | 280,926 | 5.00 | % |
(1) | Refers to quarterly average assets as calculated in accordance with policies established by bank regulatory agencies. |
Years Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Current income tax expense | $ | 4,009 | $ | 12,607 | $ | 8,557 | ||||||
Deferred income tax expense | 6,154 | 3,514 | 1,768 | |||||||||
Income tax expense | $ | 10,163 | $ | 16,121 | $ | 10,325 |
Assets | Liabilities | ||||||
Allowance for loan losses | $ | 5,673 | $ | ||||
Retirement and other benefit plans | (2,519 | ) | |||||
Premises and equipment | (6,360 | ) | |||||
Core deposit intangible | (2,748 | ) | |||||
Unrealized losses on securities available for sale | 7,926 | ||||||
Effective hedging derivatives | (1,761 | ) | |||||
Fair value adjustment on loans | 1,894 | ||||||
Fair value adjustment on time deposits | (6 | ) | |||||
Unfunded status of defined benefit plan | 6,979 | ||||||
State business tax credit | 483 | ||||||
Stock-based compensation | 797 | ||||||
Other | (582 | ) | |||||
Gross deferred tax assets (liabilities) | 23,752 | (13,976 | ) | ||||
Net deferred tax asset at December 31, 2018 | $ | 9,776 | |||||
Allowance for loan losses | $ | 4,364 | $ | ||||
Retirement and other benefit plans | (2,102 | ) | |||||
Premises and equipment | (5,716 | ) | |||||
Core deposit intangible | (3,660 | ) | |||||
Unrealized losses on securities available for sale | 4,285 | ||||||
Effective hedging derivatives | (1,701 | ) | |||||
Fair value adjustment on loans | 2,607 | ||||||
Fair value adjustment on time deposits | (54 | ) | |||||
Alternative minimum tax credit | 6,943 | ||||||
Unfunded status of defined benefit plan | 7,018 | ||||||
State business tax credit | 544 | ||||||
Stock-based compensation | 642 | ||||||
Other | (966 | ) | |||||
Gross deferred tax assets (liabilities) | 26,403 | (14,199 | ) | ||||
Net deferred tax asset at December 31, 2017 | $ | 12,204 |
Years Ended December 31, | |||||||||||||||||||||
2018 | 2017 | 2016 | |||||||||||||||||||
Amount | Percent of Pre-Tax Income | Amount | Percent of Pre-Tax Income | Amount | Percent of Pre-Tax Income | ||||||||||||||||
Statutory tax expense | $ | 17,703 | 21.0 | % | $ | 24,652 | 35.0 | % | $ | 20,886 | 35.0 | % | |||||||||
Increase (decrease) in taxes from: | |||||||||||||||||||||
Tax rate changes | (767 | ) | (0.9 | )% | 2,416 | 3.4 | % | — | — | ||||||||||||
Tax exempt interest | (6,257 | ) | (7.4 | )% | (10,195 | ) | (14.5 | )% | (9,879 | ) | (16.6 | )% | |||||||||
Bank owned life insurance | (613 | ) | (0.7 | )% | (885 | ) | (1.2 | )% | (915 | ) | (1.5 | )% | |||||||||
Share-based compensation | (191 | ) | (0.2 | )% | (482 | ) | (0.7 | )% | — | — | |||||||||||
Acquisition costs | — | — | 467 | 0.7 | % | — | — | ||||||||||||||
State business tax | 297 | 0.3 | % | 68 | 0.1 | % | 71 | 0.1 | % | ||||||||||||
Other, net | (9 | ) | — | 80 | 0.1 | % | 162 | 0.3 | % | ||||||||||||
Income tax expense | $ | 10,163 | 12.1 | % | $ | 16,121 | 22.9 | % | $ | 10,325 | 17.3 | % |
December 31, 2018 | December 31, 2017 | ||||||
Unused commitments: | |||||||
Commitments to extend credit | $ | 874,557 | $ | 804,715 | |||
Standby letters of credit | 27,438 | 14,890 | |||||
Total | $ | 901,995 | $ | 819,605 |
2019 | $ | 1,265 | |
2020 | 1,158 | ||
2021 | 906 | ||
2022 | 742 | ||
2023 | 560 | ||
2024 and thereafter | 1,352 | ||
$ | 5,983 |
2019 | $ | 2,574 | |
2020 | 2,427 | ||
2021 | 1,374 | ||
2022 | 1,352 | ||
2023 | 1,119 | ||
2024 and thereafter | 3,996 | ||
$ | 12,842 |
CONDENSED BALANCE SHEETS | December 31, | |||||||
2018 | 2017 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 11,431 | $ | 8,483 | ||||
Investment in bank subsidiaries at equity in underlying net assets | 875,814 | 894,010 | ||||||
Investment in nonbank subsidiaries at equity in underlying net assets | 1,826 | 1,826 | ||||||
Other assets | 4,290 | 10,350 | ||||||
Total assets | $ | 893,361 | $ | 914,669 | ||||
LIABILITIES | ||||||||
Subordinated notes, net of unamortized debt issuance costs | $ | 98,407 | $ | 98,248 | ||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,246 | 60,241 | ||||||
Other liabilities | 3,417 | 2,040 | ||||||
Total liabilities | 162,070 | 160,529 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Common stock: ($1.25 par value, 80,000,000 shares authorized, 37,845,224 shares issued at December 31, 2018 and 40,000,000 shares authorized and 37,802,352 shares issued at December 31, 2017) | 47,307 | 47,253 | ||||||
Paid-in capital | 762,470 | 757,439 | ||||||
Retained earnings | 64,797 | 32,851 | ||||||
Treasury stock, at cost (4,120,475 at December 31, 2018 and 2,802,019 at December 31, 2017) | (93,055 | ) | (47,105 | ) | ||||
Accumulated other comprehensive loss | (50,228 | ) | (36,298 | ) | ||||
Total shareholders’ equity | 731,291 | 754,140 | ||||||
Total liabilities and shareholders’ equity | $ | 893,361 | $ | 914,669 |
Years Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Income | ||||||||||||
Dividends from subsidiary | $ | 90,000 | $ | 27,000 | $ | 30,000 | ||||||
Interest income | 78 | 60 | 51 | |||||||||
Total income | 90,078 | 27,060 | 30,051 | |||||||||
Expense | ||||||||||||
Interest expense | 8,269 | 7,646 | 3,334 | |||||||||
Other | 3,662 | 5,869 | 3,227 | |||||||||
Total expense | 11,931 | 13,515 | 6,561 | |||||||||
Income before income tax expense | 78,147 | 13,545 | 23,490 | |||||||||
Income tax benefit | 2,489 | 4,242 | 2,278 | |||||||||
Income before equity in undistributed earnings of subsidiaries | 80,636 | 17,787 | 25,768 | |||||||||
Equity in undistributed earnings of subsidiaries | (6,498 | ) | 36,525 | 23,581 | ||||||||
Net income | $ | 74,138 | $ | 54,312 | $ | 49,349 |
Years Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
OPERATING ACTIVITIES: | ||||||||||||
Net Income | $ | 74,138 | $ | 54,312 | $ | 49,349 | ||||||
Adjustments to reconcile net income to net cash provided by operations: | ||||||||||||
Amortization | 164 | 153 | 45 | |||||||||
Equity in undistributed earnings of subsidiaries | 6,498 | (36,525 | ) | (23,581 | ) | |||||||
Decrease (increase) in other assets | 6,060 | (2,113 | ) | (1,035 | ) | |||||||
Increase (decrease) in other liabilities | 1,377 | (155 | ) | 1,564 | ||||||||
Net cash provided by operating activities | 88,237 | 15,672 | 26,342 | |||||||||
INVESTING ACTIVITIES: | ||||||||||||
Investment in subsidiaries | — | 890 | (126,000 | ) | ||||||||
Net cash paid in acquisition | — | (22,801 | ) | — | ||||||||
Net cash used in investing activities | — | (21,911 | ) | (126,000 | ) | |||||||
FINANCING ACTIVITIES: | ||||||||||||
Net proceeds from issuance of subordinated long-term debt | — | — | 98,060 | |||||||||
Purchase of common stock | (47,193 | ) | — | (10,199 | ) | |||||||
Proceeds from issuance of common stock | 3,883 | 3,953 | 78,962 | |||||||||
Cash dividends paid | (41,979 | ) | (32,199 | ) | (25,963 | ) | ||||||
Net cash (used in) provided by financing activities | (85,289 | ) | (28,246 | ) | 140,860 | |||||||
Net increase (decrease) in cash and cash equivalents | 2,948 | (34,485 | ) | 41,202 | ||||||||
Cash and cash equivalents at beginning of period | 8,483 | 42,968 | 1,766 | |||||||||
Cash and cash equivalents at end of period | $ | 11,431 | $ | 8,483 | $ | 42,968 |
20. | QUARTERLY FINANCIAL INFORMATION OF REGISTRANT |
2018 | ||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||
Interest income | $ | 58,022 | $ | 57,152 | $ | 56,797 | $ | 57,194 | ||||||||
Interest expense | 15,612 | 14,742 | 13,686 | 13,061 | ||||||||||||
Net interest income | 42,410 | 42,410 | 43,111 | 44,133 | ||||||||||||
Provision for loan losses | 2,446 | 975 | 1,281 | 3,735 | ||||||||||||
Net gain (loss) on sale of securities available for sale | 61 | (741 | ) | (332 | ) | (827 | ) | |||||||||
Noninterest income excluding net gain (loss) on sale of securities | 10,073 | 10,763 | 11,339 | 10,437 | ||||||||||||
Noninterest expense | 30,196 | 28,962 | 29,274 | 31,667 | ||||||||||||
Income before income tax expense | 19,902 | 22,495 | 23,563 | 18,341 | ||||||||||||
Income tax expense | 2,521 | 2,192 | 3,360 | 2,090 | ||||||||||||
Net income | 17,381 | 20,303 | 20,203 | 16,251 | ||||||||||||
Earnings per common share | ||||||||||||||||
Basic | $ | 0.50 | $ | 0.58 | $ | 0.58 | $ | 0.46 | ||||||||
Diluted | $ | 0.50 | $ | 0.58 | $ | 0.57 | $ | 0.46 | ||||||||
Cash dividends paid per common share | $ | 0.32 | $ | 0.30 | $ | 0.30 | $ | 0.28 |
2017 | ||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||
Interest income | $ | 50,104 | $ | 46,473 | $ | 46,009 | $ | 44,888 | ||||||||
Interest expense | 11,798 | 11,513 | 10,585 | 9,608 | ||||||||||||
Net interest income | 38,306 | 34,960 | 35,424 | 35,280 | ||||||||||||
Provision for loan losses | 1,271 | 960 | 1,346 | 1,098 | ||||||||||||
Net (loss) gain on sale of securities available for sale | (249 | ) | 627 | (75 | ) | 322 | ||||||||||
Noninterest income excluding net gain (loss) on sale of securities | 9,348 | 8,781 | 9,368 | 9,351 | ||||||||||||
Noninterest expense | 29,933 | 25,007 | 25,537 | 25,858 | ||||||||||||
Income before income tax expense | 16,201 | 18,401 | 17,834 | 17,997 | ||||||||||||
Income tax expense | 5,870 | 3,890 | 3,353 | 3,008 | ||||||||||||
Net income | 10,331 | 14,511 | 14,481 | 14,989 | ||||||||||||
Earnings per common share | ||||||||||||||||
Basic | $ | 0.33 | $ | 0.49 | $ | 0.49 | $ | 0.51 | ||||||||
Diluted | $ | 0.33 | $ | 0.49 | $ | 0.49 | $ | 0.51 | ||||||||
Cash dividends paid per common share | $ | 0.30 | $ | 0.28 | $ | 0.28 | $ | 0.25 |
• | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; |
• | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and |
• | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. |
Incorporated by Reference | ||||||||||||
Exhibit Number | Exhibit Description | Filed Herewith | Exhibit | Form | Filing Date | File No. | ||||||
(2) | Plan of acquisition, reorganization, arrangement, liquidation or succession | |||||||||||
2.1 | Agreement and Plan of Merger, dated April 28, 2014, by and among Southside Bancshares, Inc., Omega Merger Sub, Inc. and OmniAmerican Bancorp, Inc. | 2 | 10-Q | 05/09/2014 | 0-12247 | |||||||
2.2 | Agreement and Plan of Merger, dated June 12, 2017, by and among Southside Bancshares, Inc., Rocket Merger Sub, Inc. and Diboll State Bancshares, Inc. | 2.1 | 10-Q | 07/28/2017 | 0-12247 | |||||||
(3) | Articles of Incorporation and Bylaws | |||||||||||
3.1 | 3.1 | 8-K | 05/14/2018 | 0-12247 | ||||||||
3.2 | 3.1 | 8-K | 02/22/2018 | 0-12247 | ||||||||
(4) | Instruments defining the rights of security holders, including indentures | |||||||||||
4.1 | Subordinated Indenture, dated as of September 19, 2016, by and between the Company and Wilmington Trust, National Association, as Trustee. | 4.1 | 8-K | 9/19/2016 | 0-12247 | |||||||
4.2 | First Supplemental Indenture, dated as of September 19, 2016 by and between the Company and Wilmington Trust, National Association, as Trustee, including the form of the Notes attached as Exhibit A thereto. | 4.2 | 8-K | 09/19/2016 | 0-12247 | |||||||
4.3 | Management agrees to furnish to the Securities and Exchange Commission, upon request, a copy of any other agreements or instruments of Southside Bancshares, Inc. and its subsidiaries defining the rights of holders of any long-term debt whose authorization does not exceed 10% of total assets. | |||||||||||
(10) | Material Contracts | |||||||||||
10.1 | Officers Long-term Disability Income Plan effective June 25, 1990 (filed as Exhibit 10(b) to the Registrant’s Form 10-K for the year ended June 30, 1990, and incorporated herein by reference) | **10 (b) | 10-K | 1991 | ||||||||
10.2 | Retirement Plan Restoration Plan for the subsidiaries of SoBank, Inc. (now named Southside Bancshares, Inc.) | **10 (c) | 10-K | 1993 | ||||||||
10.3 | Form of Deferred Compensation Agreements dated June 30, 1994 with each of Sam Dawson, Lee Gibson and Jeryl Story, as amended October 15, 1997 | **10 (f) | 10-K | 03/30/1998 | 0-12247 | |||||||
10.4 | Deferred Compensation Agreement dated December 12, 2008, by and between Southside Bank and Julie Shamburger | **10.3 | 10-Q | 04/28/2017 | 0-12247 | |||||||
10.5 | Deferred Compensation Agreement dated December 12, 2008, by and between Southside Bank and Tim Alexander | **10.2 | 10-Q | 04/28/2017 | 0-12247 | |||||||
10.6 | Deferred Compensation Agreement dated January 14, 2009, by and between Southside Bank and Bill Clawater | **10.6 | 10-K | 02/28/2018 | 0-12247 | |||||||
10.7 | Deferred Compensation Agreement dated January 12, 2009, by and between Southside Bank and Brian McCabe | **10.7 | 10-K | 02/28/2018 | 0-12247 | |||||||
10.8 | Split dollar compensation plan dated September 7, 2004 with Lee R. Gibson, III | **10 (i) | 8-K | 10/19/2004 | 3-17203 | |||||||
10.9 | Split dollar compensation plan dated August 31, 2004 with Charles E. Dawson | **10 (k) | 8-K | 10/19/2004 | 3-17203 | |||||||
10.10 | Employment Agreement dated October 22, 2007, by and between Southside Bank and Lee R. Gibson | **10 (l) | 8-K | 10/26/2007 | 3-17203 | |||||||
10.11 | Employment Agreement dated June 4, 2008, by and between Southside Bank and Julie Shamburger | **10.1 | 10-Q | 04/28/2017 | 0-12247 | |||||||
10.12 | Employment Agreement dated October 22, 2007, by and between Southside Bank and Sam Dawson | **10 (m) | 8-K | 10/26/2007 | 3-17203 | |||||||
10.13 | Employment Agreement dated April 28, 2014, by and between Southside Bank, Southside Bancshares, Inc., and Tim Carter | **10.2 | S-4 | 7/18/2014 | 3-196817 | |||||||
10.14 | Employment Agreement dated November 17, 2008, by and between Southside Bank and Brian McCabe | **10.14 | 10-K | 02/28/2018 | 0-12247 | |||||||
10.15 | Amended and Restated Employment Agreement dated September 13, 2017, by and between Southside Bank, Southside Bancshares, Inc., and Tim Carter | **10.1 | 10-Q | 10/27/2017 | 0-12247 | |||||||
10.16 | First Amendment to Employment Agreement dated as of October 25, 2018, by and between Southside Bank and Julie Shamburger | **10.1 | 10-Q | 10/26/2018 | 0-12247 | |||||||
10.17 | Key Employee Retention Agreement, dated as of June 12, 2017 by and between Southside Bank and Hilliard J. Shands, III | **10.1 | 8-K | 12/1/2017 | 0-12247 | |||||||
10.18 | **99.1 | 8-K | 4/20/2009 | 3-17203 | ||||||||
10.19 | Form of Southside Bancshares, Inc. Nonstatutory Stock Option Award Certificate for purchase of Options pursuant to the Southside Bancshares, Inc. 2009 Incentive Plan | **10.1 | 10-Q | 8/8/2011 | 3-17203 | |||||||
10.20 | Form of Southside Bancshares, Inc. Restricted Stock Unit Award Certificate for grant of Units pursuant to the Southside Bancshares, Inc. 2009 Incentive Plan | **10.2 | 10-Q | 8/8/2011 | 3-17203 | |||||||
10.21 | **10.1 | 8-K | 05/12/2017 | 0-12247 | ||||||||
10.22 | Form of Southside Bancshares, Inc. Restricted Stock Unit Award Certificate for grant of Units pursuant to the Southside Bancshares, Inc. 2017 Incentive Plan | **10.2 | 10-Q | 10/27/2017 | 0-12247 | |||||||
10.23 | Form of Southside Bancshares, Inc. Nonstatutory Stock Option Award Certificate for purchase of Options pursuant to the Southside Bancshares, Inc. 2017 Incentive Plan | **10.3 | 10-Q | 10/27/2017 | 0-12247 | |||||||
(21) | Subsidiaries of the registrant | |||||||||||
21 | X | |||||||||||
(23) | Consents of experts and counsel | |||||||||||
23.1 | X | |||||||||||
(31) | Rule 13a-14(a)/15d-14(a) Certifications | |||||||||||
31.1 | X | |||||||||||
31.2 | X | |||||||||||
(32) | Section 1350 Certification | |||||||||||
32 | X | |||||||||||
(101) | Interactive Date File | |||||||||||
101.INS | XBRL Instance Document. | X |
101.SCH | XBRL Taxonomy Extension Schema Document. | X | ||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | X | ||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | X | ||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | X | ||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | X | ||||||||||
**Compensation plan, benefit plan or employment contract or arrangement. | ||||||||||||
SOUTHSIDE BANCSHARES, INC. | |||
DATE: | February 28, 2019 | BY: | /s/ Lee R. Gibson |
Lee R. Gibson, CPA | |||
President and Chief Executive Officer | |||
(Principal Executive Officer) | |||
DATE: | February 28, 2019 | BY: | /s/ Julie N. Shamburger |
Julie N. Shamburger, CPA | |||
Senior Executive Vice President and Chief Financial Officer | |||
(Principal Financial and Accounting Officer) |
Signature | Title | Date | |||
/s/ | John R. (Bob) Garrett | Chairman of the Board | February 28, 2019 | ||
John R. (Bob) Garrett | and Director | ||||
/s/ | Donald W. Thedford | Vice Chairman of the Board | February 28, 2019 | ||
Donald W. Thedford | and Director | ||||
/s/ | Lee R. Gibson | President, Chief Executive Officer | February 28, 2019 | ||
Lee R. Gibson | and Director | ||||
/s/ | Lawrence Anderson | Director | February 28, 2019 | ||
Lawrence Anderson | |||||
/s/ | S. Elaine Anderson | Director | February 28, 2019 | ||
S. Elaine Anderson | |||||
/s/ | Michael J. Bosworth | Director | February 28, 2019 | ||
Michael J. Bosworth | |||||
/s/ | Herbert C. Buie | Director | February 28, 2019 | ||
Herbert C. Buie | |||||
/s/ | Alton Cade, Jr. | Director | February 28, 2019 | ||
Alton Cade, Jr. | |||||
/s/ | Patricia A. Callan | Director | February 28, 2019 | ||
Patricia A. Callan | |||||
/s/ | George H. (Trey) Henderson, III | Director | February 28, 2019 | ||
George H. (Trey) Henderson, III | |||||
/s/ | Melvin B. Lovelady | Director | February 28, 2019 | ||
Melvin B. Lovelady | |||||
/s/ | Tony K. Morgan | Director | February 28, 2019 | ||
Tony K. Morgan | |||||
/s/ | John F. Sammons, Jr. | Director | February 28, 2019 | ||
John F. Sammons, Jr. | |||||
/s/ | H. J. Shands, III | Director | February 28, 2019 | ||
H. J. Shands, III | |||||
/s/ | William Sheehy | Director | February 28, 2019 | ||
William Sheehy | |||||
/s/ | Preston L. Smith | Director | February 28, 2019 | ||
Preston L. Smith | |||||
/s/ | M. Richard Warner | Director | February 28, 2019 | ||
M. Richard Warner |
1. | Southside Bank is a state bank, organized under the authority of the Banking Department of Texas. |
2. | Red File #1, Inc., created under the laws of the State of Texas. |
3. | Southside Statutory Trust III, a statutory business trust created under the laws of the State of Connecticut. |
4. | Southside Statutory Trust IV, a statutory business trust created under the laws of the State of Delaware. |
5. | Southside Statutory Trust V, a statutory business trust created under the laws of the State of Delaware. |
6. | Magnolia Trust Company I, a statutory business trust created under the laws of the State of Delaware. |
1. | I have reviewed this Annual Report on Form 10-K of Southside Bancshares, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | February 28, 2019 | By: | /s/ LEE R. GIBSON |
Lee R. Gibson, CPA | |||
President and Chief Executive Officer |
1. | I have reviewed this Annual Report on Form 10-K of Southside Bancshares, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | February 28, 2019 | By: | /s/ JULIE N. SHAMBURGER |
Julie N. Shamburger, CPA | |||
Senior Executive Vice President and Chief Financial Officer |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Registrant. |
Date: | February 28, 2019 | By: | /s/ LEE R. GIBSON |
Lee R. Gibson, CPA | |||
President and Chief Executive Officer | |||
Date: | February 28, 2019 | By: | /s/ JULIE N. SHAMBURGER |
Julie N. Shamburger, CPA | |||
Senior Executive Vice President and Chief Financial Officer |
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DOCUMENT AND ENTITY INFORMATION - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Feb. 25, 2019 |
Jun. 30, 2018 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SOUTHSIDE BANCSHARES INC | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000705432 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,097,122,089 | ||
Entity Common Stock Shares Outstanding (in shares) | 33,689,812 |
CONSOLIDATED BALANCE SHEETS - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
|||||
---|---|---|---|---|---|---|---|
ASSETS | |||||||
Cash and due from banks | $ 87,375,000 | $ 79,171,000 | |||||
Interest earning deposits | 23,884,000 | 111,541,000 | |||||
Federal funds sold | 9,460,000 | 7,980,000 | |||||
Total cash and cash equivalents | 120,719,000 | 198,692,000 | |||||
Securities available for sale, at estimated fair value | 1,989,436,000 | ||||||
Securities available for sale, at estimated fair value | 1,538,755,000 | ||||||
Securities held to maturity, at carrying value (estimated fair value of $159,781 and $921,800, respectively) | 162,931,000 | 909,506,000 | |||||
FHLB stock, at cost | 32,583,000 | 55,729,000 | |||||
Equity investments | 12,093,000 | ||||||
Equity investments | 5,821,000 | ||||||
Loans held for sale | 601,000 | 2,001,000 | |||||
Loans: | |||||||
Loans | 3,312,799,000 | 3,294,356,000 | |||||
Less: Allowance for loan losses | [1] | (27,019,000) | (20,781,000) | ||||
Net loans | 3,285,780,000 | 3,273,575,000 | |||||
Premises and equipment, net | 135,972,000 | 133,640,000 | |||||
Goodwill | 201,116,000 | 201,246,000 | |||||
Other intangible assets, net | 17,779,000 | 22,993,000 | |||||
Interest receivable | 27,287,000 | 28,491,000 | |||||
Deferred tax asset, net | 9,776,000 | 12,204,000 | |||||
Unsettled issuances of brokered certificates of deposit | 15,236,000 | 0 | |||||
Bank owned life insurance | 98,160,000 | 100,368,000 | |||||
Other assets | 14,025,000 | 15,076,000 | |||||
Total assets | 6,123,494,000 | 6,498,097,000 | |||||
Deposits: | |||||||
Noninterest bearing | 994,680,000 | 1,037,401,000 | |||||
Interest bearing | 3,430,350,000 | 3,478,046,000 | |||||
Total deposits | 4,425,030,000 | 4,515,447,000 | |||||
Federal funds purchased and repurchase agreements | 36,810,000 | 9,498,000 | |||||
FHLB borrowings | 719,065,000 | 1,017,361,000 | |||||
Subordinated notes, net of unamortized debt issuance costs | [2] | 98,407,000 | 98,248,000 | ||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,246,000 | 60,241,000 | |||||
Unsettled trades to purchase securities | 6,378,000 | 0 | |||||
Other liabilities | 46,267,000 | 43,162,000 | |||||
Total liabilities | 5,392,203,000 | 5,743,957,000 | |||||
Off-balance-sheet arrangements, commitments and contingencies (Note 17) | |||||||
Shareholders’ equity: | |||||||
Common stock: ($1.25 par value, 80,000,000 shares authorized and 37,845,224 shares issued at December 31, 2018 and 40,000,000 shares authorized and 37,802,352 shares issued at December 31, 2017) | 47,307,000 | 47,253,000 | |||||
Paid-in capital | 762,470,000 | 757,439,000 | |||||
Retained earnings | 64,797,000 | 32,851,000 | |||||
Treasury stock, at cost (4,120,475 at December 31, 2018 and 2,802,019 at December 31, 2017) | (93,055,000) | (47,105,000) | |||||
Accumulated other comprehensive loss | (50,228,000) | (36,298,000) | |||||
Total shareholders’ equity | 731,291,000 | 754,140,000 | |||||
Total liabilities and shareholders’ equity | $ 6,123,494,000 | $ 6,498,097,000 | |||||
|
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Held to Maturity, fair value | $ 159,781 | $ 921,800 |
Common stock, par value (in dollars per share) | $ 1.25 | $ 1.25 |
Common stock, shares authorized (in shares) | 80,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 37,845,224 | 37,802,352 |
Treasury stock, (in shares) | 4,120,475 | 2,802,019 |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Interest income | |||||
Loans | $ 158,691 | $ 117,633 | $ 106,564 | ||
Investment securities – taxable | 417 | 939 | 1,057 | ||
Investment securities – tax-exempt | 24,960 | 24,529 | 22,654 | ||
Mortgage-backed securities | 41,584 | 41,361 | 37,450 | ||
FHLB stock and equity investments | 1,595 | 1,306 | 798 | ||
Other interest earning assets | 1,918 | 1,706 | 390 | ||
Total interest income | 229,165 | 187,474 | 168,913 | ||
Interest expense | |||||
Deposits | 35,864 | 20,736 | 14,255 | ||
FHLB borrowings | 12,813 | 15,106 | 11,751 | ||
Subordinated notes | 5,659 | 5,633 | 1,628 | ||
Trust preferred subordinated debentures | 2,610 | 2,013 | 1,706 | ||
Other borrowings | 155 | 16 | 8 | ||
Total interest expense | 57,101 | 43,504 | 29,348 | ||
Net interest income | 172,064 | 143,970 | 139,565 | ||
Provision for loan losses | [1] | 8,437 | 4,675 | 9,780 | |
Net interest income after provision for loan losses | 163,627 | 139,295 | 129,785 | ||
Noninterest income | |||||
Deposit services | 25,082 | 21,785 | 20,702 | ||
Net (loss) gain on sale of securities available for sale | (1,839) | 625 | 2,836 | ||
Gain on sale of loans | 692 | 1,821 | 2,795 | ||
Trust income | 6,832 | 3,818 | 3,491 | ||
Bank owned life insurance income | 2,923 | 2,537 | 2,626 | ||
Brokerage services | 1,987 | 2,422 | 2,127 | ||
Other | 5,096 | 4,465 | 4,834 | ||
Total noninterest income | 40,773 | 37,473 | 39,411 | ||
Noninterest expense | |||||
Salaries and employee benefits | 70,643 | 60,779 | 61,628 | ||
Occupancy expense | 13,814 | 12,068 | 13,722 | ||
Acquisition expense | 2,413 | 4,352 | 0 | ||
Advertising, travel & entertainment | 2,894 | 2,219 | 2,643 | ||
ATM and debit card expense | 1,090 | 3,889 | 3,136 | ||
Professional fees | 4,035 | 3,844 | 4,946 | ||
Software and data processing expense | 3,996 | 3,027 | 2,911 | ||
Telephone and communications | 1,847 | 1,905 | 1,931 | ||
FDIC insurance | 1,871 | 1,769 | 2,141 | ||
Amortization expense on intangibles | 5,213 | 1,955 | 1,940 | ||
Other | 12,283 | 10,528 | 14,524 | ||
Total noninterest expense | 120,099 | 106,335 | 109,522 | ||
Income before income tax expense | 84,301 | 70,433 | 59,674 | ||
Income tax expense | 10,163 | 16,121 | 10,325 | ||
Net income | $ 74,138 | $ 54,312 | $ 49,349 | ||
Earnings per common share - basic (in dollars per share) | $ 2.12 | $ 1.82 | $ 1.82 | ||
Earnings per common share - diluted (in dollars per share) | 2.11 | 1.81 | 1.81 | ||
Dividends paid on common stock (in dollars per share) | $ 1.20 | $ 1.11 | $ 1.01 | ||
|
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Statement of Stockholders' Equity [Abstract] | |||
Issuance of common stock for dividend reinvestment plan (in shares) | 42,872 | 43,650 | 44,575 |
Net issuance of common stock (in shares) | 2,185,000 | ||
Dividends paid on common stock (in dollars per share) | $ 1.20 | $ 1.11 | $ 1.01 |
Purchase of common stock (in shares) | 1,459,148 | 0 | 443,426 |
Net issuance of common stock under employee stock plan (in shares) | 140,692 | 159,356 | 108,225 |
Common Stock Dividends (in shares) | 719,515 | 1,252,353 | |
Net issuance of common stock in connection with the acquisition of Diboll State Bancshares, Inc. (in shares) | 5,534,925 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) |
12 Months Ended | |
---|---|---|
Dec. 31, 2017
Rate
|
Dec. 31, 2016
Rate
|
|
Statement of Cash Flows [Abstract] | ||
Stock dividend, percentage of common stock | 2.50% | 5.00% |
SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES |
12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Organization. Southside Bancshares, Inc., incorporated in Texas in 1982, is a bank holding company for Southside Bank, a Texas state bank headquartered in Tyler, Texas that was formed in 1960. We operate through 59 branches, 15 of which are located in grocery stores. We consider our primary market areas to be East Texas, Southeast Texas, the greater Fort Worth, Texas area and the greater Austin, Texas area. We are a community-focused financial institution that offers a full range of financial services to individuals, businesses, municipal entities and nonprofit organizations in the communities that we serve. These services include consumer and commercial loans, deposit accounts, wealth management and trust services, brokerage services and safe deposit services. Basis of Presentation and Consolidation. The consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of Southside Bancshares, Inc. (the “Company”), and its wholly-owned subsidiary, Southside Bank (“Southside Bank” or “the Bank”) and the nonbank subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. “Omni” refers to OmniAmerican Bancorp, Inc., a bank holding company acquired by Southside on December 17, 2014. On November 30, 2017, we acquired Diboll State Bancshares, Inc., a Texas corporation (“Diboll”) and the holding company for First Bank & Trust East Texas, a Texas banking association based in Diboll, Texas. See “Note 2 - Acquisition”. We determine if we have a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (“VIE”) under GAAP. Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. We consolidate voting interest entities in which we have all, or at least a majority of, the voting interest. As defined in applicable accounting standards, VIEs are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIEs economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. Accounting Changes and Reclassifications. Certain prior period amounts have been reclassified to conform to current year presentation. We adopted Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” as modified by subsequently issued ASUs 2015-14, 2016-08, 2016-10, 2016-12 and 2016-20, on January 1, 2018, the effective date of the guidance, using the modified retrospective approach. As the majority of the Company’s revenues are not subject to the new guidance, the adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows. As a result of the guidance, we adjusted the presentation of revenue received from our brokerage services, merchant services, as well as our interchange income associated with debit card services, which were all deemed to be services offered in an agent capacity. These lines of revenue will now be presented on a net basis with the fee income disclosed net of the related costs in the noninterest income section of the consolidated statements of income. In connection with the adoption, for the year ended December 31, 2018, we netted $4.0 million of debit card expense against deposit services income and $641,000 of brokerage services expense against brokerage services income, respectively. Due to the implementation of the guidance under the modified retrospective method, prior periods have not been adjusted and are not comparative. Refer to our revenue recognition discussion below for more information related to our revenue recognition policies. We adopted ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities,” on January 1, 2018, the effective date of the guidance. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale (“AFS”) securities in combination with the entity’s other deferred tax assets. The guidance requires companies to apply the requirements in the year of adoption, through cumulative adjustment, while the guidance related to equity securities without readily determinable fair values should be applied prospectively. Adoption of this guidance resulted in a cumulative-effect adjustment to retained earnings of $85,000, net of tax, on January 1, 2018 and an equity security with a carrying value of $5.9 million that was previously recognized in securities AFS, at estimated fair value on our consolidated balance sheet to instead be recognized in equity investments, with subsequent changes in fair value being recognized in income. Also in conjunction with the adoption, our fair value measurement of financial instruments will be based upon an exit price notion as required in ASC 820. The guidance was applied on a prospective approach resulting in prior periods no longer being comparable. We adopted ASU 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” on January 1, 2018. ASU 2017-07 requires employers to present the service cost component of net periodic postretirement benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Employers are required to present the other components of the net periodic benefit cost separately from the line item that includes the service cost and outside of any subtotal of operating income, if one is presented. The guidance requires companies to apply the requirements retrospectively to all prior periods presented. We elected to use the practical expedient that permits us to use the amounts in our pension plan disclosures in our employee benefit footnote for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements, which resulted in an increase of $304,000 and a decrease of $2.4 million in salaries and employee benefits expense and a decrease of $304,000 and an increase of $2.4 million in other noninterest expense for the years ended December 31, 2017 and 2016, respectively. We early adopted ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” on January 1, 2018. ASU 2017-12 (i) expands hedge accounting for nonfinancial and financial risk components and amends measurement methodologies to more closely align hedge accounting with a company’s risk management activities, (ii) decreases the complexity of preparing and understanding hedge results by eliminating the separate measurement and reporting of hedge ineffectiveness, (iii) enhances transparency, comparability and understanding of hedge results through enhanced disclosures and changing the presentation of hedge results to align the effects of the hedging instrument and the hedged item and (iv) reduces the cost and complexity of applying hedge accounting by simplifying the manner in which assessments of hedge effectiveness may be performed. The guidance also permits a transition election to reclassify held to maturity (“HTM”) securities to AFS securities if a portion of those securities would qualify to be hedged under the new “last-of-layer” approach. The guidance requires companies to apply the requirements to existing hedging relationships on the date of adoption, and the effect of the adoption should be reflected as of the beginning of the fiscal year of adoption. The guidance did not have an impact on our derivatives that qualified as hedges on the date of adoption and thus no adjustment was made to retained earnings. In conjunction with the adoption of ASU 2017-12, we made the transition election to reclassify approximately $743.4 million in book value of securities from HTM to AFS that qualified for the last-of-layer approach described in ASU 2017-12. During the second quarter of 2018, we entered into partial term fair value hedges, as allowed under the recently adopted ASU 2017-12, for certain of our fixed rate callable AFS municipal securities. These hedges are expected to be effective in offsetting changes in the fair value of the hedged securities. Gains and losses on derivative instruments designated as fair value hedges, as well as the change in fair value on the hedged item, are recorded in interest income in the consolidated statements of income. Stock Dividend. There were no stock dividends declared or paid during 2018. On May 4, 2017, our board of directors declared a 2.5% stock dividend to common stock shareholders of record as of May 30, 2017, which was paid on June 27, 2017. On May 5, 2016, our board of directors declared a 5.0% stock dividend to common stock shareholders of record as of May 31, 2016, which was paid on June 28, 2016. All share data for all periods presented has been adjusted to give retroactive recognition to these stock dividends unless otherwise indicated. Use of Estimates. In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. These estimates are subjective in nature and involve matters of judgment. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, assumptions used in the defined benefit plan and the fair values of financial instruments. The status of contingencies are particularly subject to change and significant assumptions used in periodic evaluation of securities for other-than-temporary impairment. Certain prior period amounts have been reclassified to conform to the current period presentation. Segment Information. Operating segments are components of a business about which separate financial information is available and that are evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and assess performance. Our chief operating decision-maker uses consolidated results to make operating and strategic decisions. Therefore, we have determined that our business is conducted in one reportable segment. Business Combinations. Business combinations are accounted for using the acquisition method of accounting. Under this accounting method, the acquired company’s net assets are recorded at fair value on the date of acquisition, and the results of operations of the acquired company are combined with our results from that date forward. Costs related to the acquisition are expensed as incurred. The difference between the purchase price and the fair value of the net assets acquired (including intangible assets with finite lives) is recorded as goodwill. The accounting policy for goodwill and intangible assets is summarized in this note under the heading “Goodwill and Other Intangibles.” Acquired loans (non-impaired and impaired) are initially measured at fair value as of the acquisition date. The fair value estimates for acquired loans are based on the estimate of expected cash flows, both principal and interest and prepayments, discounted at prevailing market interest rates. Credit discounts representing the principal losses expected over the life of the loan are also a component of the initial fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. We evaluate acquired loans for impairment in accordance with the provisions of ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC 310-30”). Acquired loans are considered impaired if there is evidence of credit deterioration since origination and if it is probable at time of acquisition that all contractually required payments will not be collected. Expected cash flows at the acquisition date in excess of the fair value of the loans is referred to as the accretable yield and recorded as interest income over the life of the loans. Acquired impaired loans are not classified as nonaccrual or nonperforming as they are considered to be performing under the provisions of ASC 310-30. Subsequent to the acquisition date, increases in expected cash flows will generally result in a recovery of any previously recorded allowance for loan loss, to the extent applicable, and/or a reclassification from the nonaccretable difference to accretable yield, which will be recognized prospectively. The present value of any decreases in expected cash flows after the acquisition date will generally result in an impairment charge recorded as a provision for loan losses, resulting in an increase to the allowance for loan loss. For acquired non-impaired loans, the difference between the acquisition date fair value and the contractual amounts due at the acquisition date represents the fair value adjustment. Fair value adjustments may be discounts (or premiums) to a loan’s cost basis and are accreted (or amortized) to interest income over the loan’s remaining contractual life using the level yield method. Cash Equivalents. Cash equivalents, for purposes of reporting cash flow, include cash, amounts due from banks and federal funds sold that have an initial maturity of less than 90 days. We maintain deposits with other institutions in amounts that exceed federal deposit insurance coverage. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that we are not exposed to any significant credit risks on cash and cash equivalents. Cash on hand or on deposit with the Federal Reserve Bank of $34.1 million and $32.2 million was required to meet regulatory reserves and clearing requirements at December 31, 2018 and 2017, respectively. Basic and Diluted Earnings per Common Share. Basic earnings per common share is based on net income divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of stock options granted using the treasury stock method. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per common share for the reported periods is provided in “Note 3 – Earnings Per Share.” Comprehensive Income. Comprehensive income includes all changes in shareholders’ equity during a period, except those resulting from transactions with shareholders. Besides net income, other components of comprehensive income include the after tax effect of changes in the fair value of AFS securities, changes in the net unrealized loss on securities transferred to/from HTM, changes in the accumulated gain or loss on effective cash flow hedging instruments and changes in the funded status of defined benefit retirement plans. Comprehensive income is reported in the accompanying consolidated statements of comprehensive income and in “Note 4 - Accumulated Other Comprehensive Loss.” Loans. All loans are stated at principal outstanding net of unearned discount and other deferred expenses or fees. Interest income on loans is recognized using the level yield method or simple interest method. Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal adjusted for any charge-offs, the allowance for loan losses, and any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. A loan is considered impaired, based on current information and events, if it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Substantially all of our impaired loans are collateral-dependent, and as such, are measured for impairment based on the fair value of the collateral. Loans Held For Sale. Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses are recognized through a valuation allowance by charges to income. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. Loan Fees. We treat loan fees, net of direct costs, as an adjustment to the yield of the related loan over its term. Allowance for Loan Losses. An allowance for loan losses is provided through charges to income in the form of a provision for loan losses. Loans which management believes are uncollectible are charged against this account with subsequent recoveries, if any, credited to the account. The amount of the allowance for loan losses is determined by management’s evaluation of the quality and inherent risks in the loan portfolio, economic conditions and other factors which warrant current recognition. Nonaccrual Loans. A loan is placed on nonaccrual when principal or interest is contractually past due 90 days or more unless, in the determination of management, the principal and interest on the loan are well collateralized and in the process of collection. In addition, a loan is placed on nonaccrual when, in the opinion of management, the future collectability of interest and principal is not expected. When classified as nonaccrual, accrued interest receivable on the loan is reversed and the future accrual of interest is suspended. Payments of contractual interest are recognized as income only to the extent that full recovery of the principal balance of the loan is reasonably certain. Other Real Estate Owned and Foreclosed Assets. Other Real Estate Owned (“OREO”) includes real estate acquired in full or partial settlement of loan obligations. OREO is initially carried at the fair value of the collateral net of estimated selling costs. Prior to foreclosure, the recorded amount of the loan is written down, if necessary, to the appraised fair value of the real estate to be acquired, less selling costs, by charging the allowance for loan losses. Any subsequent reduction in fair value net of estimated selling costs is charged to noninterest expense. Costs of maintaining and operating foreclosed properties are expensed as incurred and included in other expense in our income statement. Expenditures to complete or improve foreclosed properties are capitalized only if expected to be recovered; otherwise, they are expensed. Other foreclosed assets are held for sale and are initially recorded at fair value less estimated selling costs at the date of foreclosure, by charging the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less costs to sell. Foreclosed assets are included in other assets in the accompanying consolidated balance sheets. Expenses from operations and changes in the valuation allowance are included in noninterest expense. Securities. Available for Sale (“AFS”). Debt securities that will be held for indefinite periods of time, including securities that may be sold in response to changes in market interest or prepayment rates, needs for liquidity and changes in the availability of and the yield on alternative investments are classified as AFS. These assets are carried at fair value with unrealized gains and losses reported as a separate component of accumulated other comprehensive income (“AOCI”), net of tax. Fair value is determined using quoted market prices as of the close of business on the balance sheet date. If quoted market prices are not available, fair values are based on quoted market prices for similar securities or estimates from independent pricing services. Securities that are hedged with qualifying derivatives are carried at fair value with the change in fair value on both the hedged instrument and the securities recorded in interest income in the consolidated statements of income. Held to Maturity (“HTM”). Debt securities that management has the positive intent and ability to hold until maturity are classified as HTM and are carried at their remaining unpaid principal balance, net of unamortized premiums or unaccreted discounts. Prior to January 1, 2019, premiums were amortized and discounts were accreted to maturity, or in the case of mortgage-backed securities (“MBS”), over the estimated life of the security, using the level yield interest method. Effective January 1, 2019, premium callable securities will be amortized to the earliest call date and securities purchased at a discount will be accreted to maturity. Unrealized gains and losses on AFS securities are excluded from earnings and reported net of tax in AOCI until realized. Declines in the fair value of AFS or HTM securities below their cost that are deemed to be other-than-temporary are reflected in earnings as a realized loss if there is no ability or intent to hold to recovery. If the Company does not intend to sell and will not be required to sell prior to recovery of its amortized cost basis, only the credit component of the impairment is reflected in earnings as a realized loss with the noncredit portion recognized in other comprehensive income. In estimating other-than-temporary impairment losses, we consider (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) our intent and ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded in the month of the trade date and are determined using the specific identification method. Equity Investments. Beginning January 1, 2018, upon adoption of ASU 2016-01, equity investments with readily determinable fair values are stated at fair value with the unrealized gains and losses reported in other noninterest income in the consolidated statements of income. For periods prior to January 1, 2018, certain equity investments were classified as AFS and stated at fair value with unrealized gains and losses reported as a separate component of AOCI, net of tax. Equity investments without readily determinable fair values are recorded at cost less impairment, if any. Securities with Limited Marketability. Securities with limited marketability, such as stock in the FHLB, are carried at cost and assessed for other-than-temporary impairment. Premises and Equipment. Land is carried at cost. Bank premises and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight line basis over the estimated useful lives of the related assets. Useful lives are estimated to be 15 to 40 years for premises and 3 to 10 years for equipment. Leasehold improvements are generally depreciated over the lesser of the term of the respective leases or the estimated useful lives of the improvements. Maintenance and repairs are charged to expense as incurred while major improvements and replacements are capitalized. Bank-Owned Life Insurance. The Company has purchased life insurance policies on certain key executives. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Changes in the net cash surrender value of the policies, as well as insurance proceeds received are reflected in noninterest income on the consolidated statements of income and are not subject to income taxes. Goodwill and Other Intangibles. Other intangible assets consist primarily of core deposits and trust relationship intangibles. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. Goodwill and intangible assets that have indefinite useful lives are subject to at least an annual impairment test and more frequently if a triggering event occurs. If any such impairment is determined, a write-down is recorded. We have selected October 1 of each year as the measurement date on which we will complete our annual goodwill impairment assessment. As of October 1, 2018 and 2017, the fair value of the reporting unit was greater than the carrying value of the reporting unit. As a result, we did not record any goodwill impairment for the year ended December 31, 2018 and 2017, and we had no cumulative goodwill impairment. At December 31, 2018, core deposit intangible and trust relationship intangible was $13.1 million and $4.5 million, respectively. For the years ended December 31, 2018 and 2017, amortization expense related to our core deposit intangible and trust relationship intangible was $5.1 million and $1.8 million, respectively. For the year ended December 31, 2016, amortization expense related to our core deposit intangible was $1.8 million. Repurchase Agreements. We sell certain securities under agreements to repurchase. The agreements are treated as collateralized financing transactions and the obligations to repurchase securities sold are reflected as a liability in the accompanying consolidated balance sheets. The dollar amount of the securities underlying the agreements remains in the asset account. We determine the type of securities to pledge. Generally we pledge U.S. agency MBS. Derivative Financial Instruments and Hedging Activities. Derivative financial instruments are carried on the consolidated balance sheets as other assets or other liabilities, as applicable, at estimated fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative financial instrument is determined by whether it has been designated and qualifies as part of a hedging relationship and, further, by the type of hedging relationship. We present derivative financial instruments at fair value in the consolidated balance sheets on a net basis when a right of offset exists, based on transactions with a single counterparty and any cash collateral paid to and/or received from that counterparty for derivative contracts that are subject to legally enforceable master netting arrangements. For derivative instruments that are designated and qualify as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item (i.e., the ineffective portion), if any, is recognized in current earnings during the period of change. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. During the three months ended June 30, 2018, we entered into partial term fair value hedges, as allowed under the recently adopted ASU 2017-12, for certain of our fixed rate callable available for sale municipal securities. These partial term hedges of selected cash flows covering the time periods to the call dates of the hedged securities are expected to be effective in offsetting changes in the fair value of the hedged securities. Interest rate swaps designated as partial-term fair value hedges are utilized to mitigate the effect of changing interest rates on the hedged securities. The hedging strategy converts a portion of the fixed interest rates on the securities to LIBOR-based variable interest rates. For derivatives designated as hedging instruments at inception, statistical regression analysis is used at inception and for each reporting period thereafter to assess whether the derivative used has been and is expected to be highly effective in offsetting changes in the fair value or cash flows of the hedged item. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. Net hedge ineffectiveness is recorded in “other noninterest income” on the consolidated statements of income. Terminated Derivative Financial Instruments. In accordance with ASC Topic 815, if a hedging item is terminated prior to maturity for a cash settlement, the existing gain or loss within AOCI will continue to be reclassified into earnings during the period or periods in which the hedged forecasted transaction affects earnings unless it is probable that the forecasted transaction will not occur by the end of the originally specified time period. If the forecasted transaction is deemed probable to not occur, the derivative gain or loss reported in AOCI shall be reclassified into earnings immediately. During the first quarter of 2017, we terminated two interest rate swap contracts designated as cash flow hedges. At the time of termination, we determined that the underlying hedged forecasted transactions were still probable of occurring. These transactions are reevaluated on a monthly basis to determine if the hedged forecasted transactions are still probable of occurring. If at a subsequent evaluation it is determined that the transactions will not occur, any related gains or losses recorded in AOCI are immediately recognized in earnings. Further information on our derivative instruments and hedging activities is included in “Note 12 - Derivative Financial Instruments and Hedging Activities.” Revenue Recognition. Our revenue consists of net interest income on financial assets and financial liabilities and noninterest income. The classifications of our revenue are presented in the consolidated statements of income. On January 1, 2018, we adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” using the modified retrospective method. The revenue recognition principle in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 permits an entity to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset would have been one year or less. We generally expense sales commissions when incurred because the amortization period is within one year or less. These costs are recorded within salaries and employee benefits on the consolidated statements of income. Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of goods or services. Under ASU 2014-09’s practical expedient to recognize revenue equal to the amounts for which we have a right to invoice, revenue is measured as the amount of consideration we expect to receive in exchange for the transfer of those goods or services. The following summarizes our revenue recognition policies as they relate to revenue from contracts with customers under ASU 2014-09:
Income Taxes. We file a consolidated federal income tax return. Income tax expense represents the taxes expected to be paid or returned for current year taxes adjusted for the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in income in the period the change occurs. Uncertain tax positions arise when it is more likely than not that the tax position taken will be sustained upon examination by the appropriate tax authority. Any income tax benefit as well as penalties and interest related to income tax expense are recorded as a component of income tax expense. Unrecognized tax benefits were not material as of December 31, 2018 or 2017. Fair Value of Financial Instruments. Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment. In cases where quoted market prices are not available, fair values are based on estimates using present value or other estimation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Defined Benefit Pension Plan. Defined benefit pension obligations and the annual pension costs are determined by independent actuaries and through the use of a number of assumptions that are reviewed by management. These assumptions include a compensation rate increase, a discount rate used to determine the current benefit obligation and a long-term expected rate of return on plan assets. Net periodic defined benefit pension expense includes service cost, interest cost based on the assumed discount rate, an expected return on plan assets, amortization of prior service cost and amortization of net actuarial gains or losses. Prior service costs include the impact of plan amendments on the liabilities and are amortized over the future service periods of active employees expected to receive benefits under the plan. Actuarial gains and losses result from experience different from that assumed and from changes in assumptions. Amortization of actuarial gains and losses is included as a component of net periodic defined benefit pension cost. The service cost component is recorded on our consolidated income statement as salaries and employee benefits in noninterest expense while all other components other than service cost are recorded in other noninterest expense. The plan obligations, related assets and net periodic benefit costs of our defined benefit pension plan are presented in “Note 11 – Employee Benefits.” Share-Based Awards. Share-based compensation transactions are recognized as compensation cost in the income statement based on their fair values on the date of the grant and recorded over the vesting period. Loss Contingencies. Loss contingencies, including claims and legal actions arising in the ordinary course of business are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Wealth Management and Trust Assets. Our wealth management and trust assets, other than cash on deposit at Southside Bank, are not included in the accompanying financial statements, because they are not our assets. Accounting Pronouncements: In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires most leases to be recognized on the balance sheet and requires enhanced disclosures. Consistent with legacy GAAP, the recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike legacy GAAP which requires only capital leases to be recognized on the balance sheet, the new ASU 2016-02 will require both finance (formerly known as “capital”) and operating leases to be recognized on the balance sheet. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The guidance originally required companies to apply the requirements in the year of adoption using a modified retrospective approach beginning in the earliest period presented; however, in July 2018, the FASB issued ASU 2018-11 “Leases (Topic 842): Targeted Improvements,” which provides lessees the option to apply the new leasing standard by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We adopted ASU 2016-02 on January 1, 2019, the effective date of the guidance, using the cumulative-effect adjustment option and did not revise comparative period information or disclosure. We also elected certain optional practical expedients including the hindsight practical expedient under which we considered the actual outcomes of lease renewals and terminations when measuring the lease term. Our operating leases relate primarily to bank branches and office space. In conjunction with the adoption, on January 1, 2019, we recognized lease liabilities of $10.1 million and related lease assets of $9.8 million on our balance sheet. The difference between the lease assets and lease liabilities primarily consists of deferred rent liabilities reclassified upon adoption to reduce the measurement of the lease assets. The adoption of the new standard will result in additional quantitative and qualitative disclosures. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. ASU 2016-13 also modifies the impairment model for AFS debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The guidance requires companies to apply the requirements in the year of adoption through a cumulative-effect adjustment with some aspects of the update requiring a prospective transition approach. We are currently evaluating the potential impact of the pending adoption of ASU 2016-13 on our consolidated financial statements. We plan to adopt on January 1, 2020, the effective date. We have developed a project plan and have assigned a project team to complete the analysis needed to implement the guidance. We are also currently working with a third party vendor solution to assist with the application of ASU 2016-13. The team is currently completing the data collection and anticipates running parallel models during 2019. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 is intended to simplify goodwill impairment testing by eliminating the second step of the analysis which requires the calculation of the implied fair value of goodwill to measure a goodwill impairment charge. The update requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual and interim goodwill impairment tests performed in periods beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The guidance requires companies to apply the requirements prospectively in the year of adoption. ASU 2017-04 is not expected to have a significant impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” Under current GAAP, premiums on callable debt securities are generally amortized over the contractual life of the security. ASU 2017-08 requires the premium on callable debt securities to be amortized to the earliest call date. If the debt security is not called at the earliest call date, the holder of the debt security would be required to reset the effective yield on the debt security based on the payment terms required by the debt security. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The guidance requires companies to apply the requirements on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We adopted the new standard on January 1, 2019, the effective date of the guidance, and recognized a cumulative-effect adjustment to reduce retained earnings by $16.5 million, before tax. |
ACQUISITION |
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Acquisition | ACQUISITION On November 30, 2017, we acquired 100% of the outstanding stock of Diboll State Bancshares, Inc. and its wholly-owned subsidiary First Bank & Trust East Texas (collectively, “Diboll”) headquartered in Diboll, Texas. Diboll operated 17 banking offices in Diboll and surrounding areas. We acquired Diboll to further expand our presence in the East Texas market. The operations of Diboll were merged into the Company as of the date of the acquisition. The results of Diboll's operations for November 30 - December 31, 2017 are included in the consolidated financial statements and are not separately quantifiable subsequent to the business combination. Pursuant to the merger agreement, on November 30, 2017, we issued 5.5 million shares of our common stock and paid $23.9 million in cash for all outstanding shares of Diboll State Bancshares Inc. common stock. In accordance with the merger agreement, each outstanding share of common stock of Diboll State Bancshares, Inc. was converted into (a) 6.5021 shares of common stock of the Company and (b) $28.12 in cash (the “Per Share Merger Consideration”). Pursuant to the Diboll State Bancshares, Inc. Incentive Stock Option 2014 Plan and predecessor plans, and the individual award agreements granted thereunder, all outstanding equity awards terminated as of the effective time of the acquisition and became null and void. Holders of stock options granted under such plans were provided an opportunity to exercise such stock options or take advantage of the cashless exercise feature of such equity awards prior to the effective time of the acquisition. The cash consideration is net of the aggregate after-tax amount paid by Diboll to holders of options to purchase Diboll common stock who utilized the cashless exercise feature immediately prior to the acquisition as outlined in the merger agreement. Based on our closing stock price on November 30, 2017 of $36.20, the total merger consideration for the Diboll merger was $224.3 million. The components of the consideration paid are shown in the following table (in thousands):
The Diboll acquisition was accounted for using the acquisition method of accounting and accordingly, purchased assets, including identifiable intangible assets and assumed liabilities were recorded at their respective acquisition date fair values. The purchase price allocation as reported at December 31, 2017 was preliminary and was subject to final determination and valuation of the fair value of assets acquired and liabilities assumed. The fair value of assets acquired, adjusted for subsequent measurement period adjustments, excluding goodwill, totaled $1.03 billion, including total loans of $621.3 million and total investment securities of $234.4 million. Total fair value of the liabilities assumed totaled $910.7 million, including deposits of $899.3 million. Goodwill represents consideration transferred in excess of the fair value of the net assets acquired. In 2017, the Company recognized initial goodwill of $109.7 million. As of December 31, 2018, total goodwill related to the Diboll acquisition was $109.6 million, after recording, within the measurement period, an immaterial adjustment to goodwill based on the filing of the short-period Federal Income Tax return for Diboll and its subsidiaries. The measurement period for the Diboll acquisition ended during the fourth quarter of 2018. The goodwill resulting from the acquisition represents the value expected from the expansion of our markets into the Southeast Texas region and the enhancement of our operations through customer synergies and efficiencies, thereby providing enhanced customer service. Goodwill is not expected to be deductible for tax purposes. The following table reflects the changes in the carrying amount of our goodwill for the year ended December 31, 2018 (in thousands):
The estimated fair values of the assets acquired and liabilities assumed as of the closing date of the transaction adjusted for the subsequent measurement period adjustments are shown in the following table (in thousands):
The determination of estimated fair values of the acquired loans required the Company to make certain estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature. Based on such factors as past due status, nonaccrual status, bankruptcy status and credit risk ratings, the acquired loans were divided into loans with evidence of credit quality deterioration, which are accounted for under ASC 310-30 (purchased credit impaired “PCI”), and loans that do not meet this criteria, which are accounted for under ASC 310-20 (purchased non-impaired). Expected cash flows, both principal and interest, were estimated based on key assumptions covering such factors as prepayments, default rates and severity of loss given default. These assumptions were developed using both Diboll’s historical experience and the portfolio characteristics as of the acquisition date as well as available market research. The fair value estimates for acquired loans were based on the amount and timing of expected principal, interest and other cash flows, including expected prepayments, discounted at prevailing market interest rates applicable to the types of acquired loans, which we considered to be Level 3 fair value measurements. Deposit liabilities assumed in the acquisition of Diboll were segregated into two categories: time-deposits (i.e., deposit accounts with a stated maturity) and demand deposits, both using Level 2 fair value measurements. In determining fair value of time deposits, the Company discounted the contractual cash flows of the deposit accounts using prevailing market interest rates for time deposit accounts of similar type and duration. For demand deposits, the acquisition date outstanding balance of the assumed demand deposit accounts approximates fair value. Acquisition date fair values for securities available for sale were determined using Level 1 or Level 2 inputs consistent with the methods discussed further in “Note 13 - Fair Value Measurement”. The remaining acquisition date fair values represent either Level 2 fair value measurements (other investments) or Level 3 fair value measurements (property and equipment, core deposit intangible and trust intangible). We recognized a core deposit intangible of $14.7 million and a trust relationship intangible of $5.4 million which will be amortized using an accelerated method over a 9- and 13-year weighted average amortization period, respectively, consistent with expected future cash flows. For the year ended December 31, 2017, the Company incurred a total of pre-tax acquisition related expenses associated with the Diboll acquisition of approximately $4.4 million which consisted primarily of $2.4 million of legal and consulting fees and $1.9 million of software expenses due to canceling of contracts. These expenses were recognized in the consolidated statements of income in acquisition expense. We incurred costs of $277,000 directly related to the issuance of the shares related to the acquisition which were offset against additional paid-in-capital in the consolidated statements of changes in equity. We also recorded non-solicitation agreements for $240,000 that will be amortized using the straight-line method over three years in connection with the acquisition. Loans acquired with Diboll were measured at fair value at the acquisition date with no carryover of any allowance for loan losses. Loans were segregated into those loans considered to be performing and those considered PCI. PCI loans are loans acquired with evidence of deteriorated credit quality for which it was probable, at acquisition, that all contractually required cash flows would not be collected. The table below details the PCI loan portfolio at the Diboll acquisition date (in thousands):
Acquired loans that were considered performing at the Diboll acquisition date and therefore not subject to ASC 310-30 are shown below (in thousands):
Unaudited pro forma net income for the years ended December 31, 2017 and 2016 would have been $64.1 million and $58.0 million, respectively, and revenues would have been $270.9 million and $257.8 million for the same years, respectively, had the acquisition occurred as of January 1, 2016. |
EARNINGS PER SHARE |
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EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per share on a basic and diluted basis has been adjusted to give retroactive recognition to stock dividends and is calculated as follows (in thousands, except per share amounts):
For the year ended December 31, 2018, there were approximately 356,000 antidilutive options. For the years ended December 31, 2017 and 2016 there were approximately 154,000 and 359,000 antidilutive options, respectively. |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
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ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in accumulated other comprehensive loss by component are as follows for the years presented (in thousands):
The reclassifications out of accumulated other comprehensive (loss) income into net income are presented below (in thousands):
(1) Included in interest income on the consolidated statements of income. (2) Listed as net (loss) gain on sale of securities available for sale on the consolidated statements of income. (3) Included in interest expense for FHLB borrowings on the consolidated statements of income.
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SECURITIES |
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SECURITIES | SECURITIES Debt securities The amortized cost, gross unrealized gains and losses, and estimated fair value of investment and mortgage-backed securities available for sale and held to maturity as of December 31, 2018 and 2017 are reflected in the tables below (in thousands):
From time to time, we have transferred securities from AFS to HTM due to overall balance sheet strategies. The remaining net unamortized, unrealized loss on the transferred securities included in AOCI in the accompanying balance sheets totaled $15.3 million ($12.1 million, net of tax) at December 31, 2018 and $17.4 million ($13.8 million, net of tax) at December 31, 2017. Any net unrealized gain or loss on the transferred securities included in AOCI at the time of transfer will be amortized over the remaining life of the underlying security as an adjustment to the yield on those securities. Securities transferred with losses included in AOCI continue to be included in management’s assessment for other-than-temporary impairment for each individual security. There were no securities transferred from AFS to HTM during the years ended December 31, 2018 or 2017. On January 1, 2018, we early-adopted ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” and in conjunction with the adoption took the one-time transition election to reclassify approximately $743.4 million book value of securities from HTM to AFS that qualified for hedging under the last-of-layer approach. The unrealized gain of $11.9 million ($9.4 million, net of tax) on the transferred securities was recognized in other comprehensive income on the date of transfer. The following tables represent the estimated fair value and unrealized loss on investment and mortgage-backed securities AFS and HTM as of December 31, 2018 and December 31, 2017 (in thousands):
We review those securities in an unrealized loss position for significant differences between fair value and the cost basis to evaluate if a classification of other-than-temporary impairment is warranted. In estimating other-than-temporary impairment losses, management considers, among other things, the length of time and the extent to which the fair value has been less than cost and the financial condition and near-term prospects of the issuer. We consider an other-than-temporary impairment to have occurred when there is an adverse change in expected cash flows. When it is determined that a decline in fair value of AFS and HTM securities is other-than-temporary, the carrying value of the security is reduced to its estimated fair value, with a corresponding charge to earnings for the credit portion and a charge to other comprehensive income for the noncredit portion. Based upon the length of time and the extent to which fair value is less than cost, we believe that none of the securities with an unrealized loss have other-than-temporary impairment at December 31, 2018. The majority of the securities in an unrealized loss position are highly rated Texas municipal securities and U.S. Agency MBS where the unrealized loss is a direct result of the change in interest rates and spreads. For those securities in an unrealized loss position, we do not currently intend to sell the securities, and it is not more likely than not that we will be required to sell the securities before the anticipated recovery of their amortized cost basis. To the best of management’s knowledge and based on our consideration of the qualitative factors associated with each security, there were no securities in our investment and MBS portfolio with an other-than-temporary impairment at December 31, 2018. The following tables reflect interest income recognized on securities for the periods presented (in thousands):
Of the $1.8 million in net securities loss from the AFS portfolio for the year ended December 31, 2018, there were $3.8 million in realized loss position and $2.0 million in a realized gain position. Of the $625,000 in net securities gains from the AFS portfolio for the year ended December 31, 2017, there were $5.0 million in realized gain position and $4.4 million in realized loss position. Of the $2.8 million in net securities gains from the AFS portfolio for the year ended December 31, 2016, there were $6.3 million in a realized gain position and $3.4 million in a realized loss position. There were no sales from the HTM portfolio during the years ended December 31, 2018, 2017 or 2016. We calculate realized gains and losses on sales of securities under the specific identification method. The amortized cost and estimated fair value of AFS and HTM securities at December 31, 2018, are presented below by contractual maturity (in thousands). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. MBS are presented in total by category due to the fact that MBS typically are issued with stated principal amounts, and the securities are backed by pools of mortgages that have loans with varying maturities. The characteristics of the underlying pool of mortgages, such as fixed-rate or adjustable-rate, as well as prepayment risk, are passed on to the security holder. The term of a mortgage-backed pass-through security thus approximates the term of the underlying mortgages and can vary significantly due to prepayments.
Investment securities and MBS with carrying values of $1.08 billion and $1.24 billion were pledged as of December 31, 2018 and 2017, respectively, to collateralize Federal Home Loan Bank of Dallas (“FHLB”) borrowings, repurchase agreements and public funds or for other purposes as required by law. Equity Investments Equity investments on our consolidated balance sheet include Community Reinvestment Act funds with a readily determinable fair value as well as equity investments without readily determinable fair values. At December 31, 2018, we had equity investments recorded in our consolidated balance sheet of $12.1 million. At December 31, 2017, we had $5.8 million in equity investments without readily determinable fair values recorded at cost. Beginning January 1, 2018, upon adoption of ASU 2016-01, equity investments with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in income. For periods prior to January 1, 2018, these equity investments were classified as AFS and stated at fair value with unrealized gains and losses reported as a separate component of AOCI, net of tax. Equity investments without readily determinable fair values are recorded at cost less impairment, if any. At December 31, 2017, we had $5.9 million in equity investments included in AFS securities and recorded at fair value, with net unrealized losses of $85,000, net of tax, recognized in AOCI. On January 1, 2018, these unrealized losses were reclassified out of AOCI and into retained earnings with subsequent changes in fair value being recognized in net income. The following is a summary of unrealized and realized gains and losses on equity investments recognized in other noninterest income in the consolidated statements of income during the year ended December 31, 2018 (in thousands):
Equity investments are assessed quarterly for other-than-temporary impairment. Based upon that evaluation, management does not consider any of our equity investments to be other-than-temporarily impaired at December 31, 2018. Federal Home Loan Bank Stock Our FHLB stock, which has limited marketability, is carried at cost. |
LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES |
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LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES | LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES Loans in the accompanying consolidated balance sheets are classified as follows (in thousands):
Loans to Affiliated Parties In the normal course of business, we make loans to certain of our executive officers and directors and their related interests. As of December 31, 2018 and 2017, these loans totaled $4.0 million and $5.5 million, respectively. These loans represented 0.6% and 0.7% of shareholders’ equity as of December 31, 2018 and 2017, respectively. Construction Real Estate Loans Our construction loans are collateralized by property located primarily in or near the market areas we serve. A number of our construction loans will be owner occupied upon completion. Construction loans for non-owner occupied projects are financed, but these typically have cash flows from leases with tenants, secondary sources of repayment and in some cases, additional collateral. Our construction loans have both adjustable and fixed interest rates during the construction period. Construction loans to individuals are typically priced and made with the intention of granting the permanent loan on the property. Speculative and commercial construction loans are subject to underwriting standards similar to that of the commercial portfolio. Owner occupied 1-4 family residential construction loans are subject to the underwriting standards of the permanent loan. 1-4 Family Residential Real Estate Loans Residential loan originations are generated by our loan officers, in-house origination staff, marketing efforts, present customers, walk-in customers and referrals from real estate agents and builders. We focus our lending efforts primarily on the origination of loans secured by first mortgages on owner occupied 1-4 family residences. Substantially all of our 1-4 family residential originations are secured by properties located in or near our market areas. Our 1-4 family residential loans generally have maturities ranging from five to 30 years. These loans are typically fully amortizing with monthly payments sufficient to repay the total amount of the loan. Our 1-4 family residential loans are made at both fixed and adjustable interest rates. Underwriting for 1-4 family residential loans includes debt-to-income analysis, credit history analysis, appraised value and down payment considerations. Changes in the market value of real estate can affect the potential losses in the portfolio. Commercial Real Estate Loans Commercial real estate loans as of December 31, 2018 consisted of $1.13 billion of owner and non-owner occupied real estate, $49.2 million of loans secured by multi-family properties and $15.8 million of loans secured by farmland. Commercial real estate loans primarily include loans collateralized by retail, commercial office buildings, multi-family residential buildings, medical facilities and offices, senior living, assisted living and skilled nursing facilities, warehouse facilities, hotels and churches. Management does not consider there to be a risk in any one industry type. In determining whether to originate commercial real estate loans, we generally consider such factors as the financial condition of the borrower and the debt service coverage of the property. Commercial real estate loans are made at both fixed and adjustable interest rates for terms generally up to 20 years. Commercial Loans Our commercial loans are diversified loan types including short-term working capital loans for inventory and accounts receivable and short- and medium-term loans for equipment or other business capital expansion. Management does not consider there to be a concentration of risk in any one industry type. In our commercial loan underwriting, we assess the creditworthiness, ability to repay and the value and liquidity of the collateral being offered. Terms of commercial loans are generally commensurate with the useful life of the collateral offered. Municipal Loans We have a specific lending department that makes loans to municipalities and school districts primarily throughout the state of Texas, with a small percentage originating outside of the state. The majority of the loans to municipalities and school districts have tax or revenue pledges and in some cases are additionally supported by collateral. Municipal loans made without a direct pledge of taxes or revenues are usually made based on some type of collateral that represents an essential service. Loans to Individuals Substantially all originations of our loans to individuals are made to consumers in our market areas. The majority of loans to individuals are collateralized by titled equipment, which are primarily automobiles. Loan terms vary according to the type and value of collateral, length of contract and creditworthiness of the borrower. The underwriting standards we employ for consumer loans include an application, a determination of the applicant’s payment history on other debts, with the greatest weight being given to payment history with us and an assessment of the borrower’s ability to meet existing obligations and payments on the proposed loan. Although creditworthiness of the applicant is a primary consideration, the underwriting process also includes a comparison of the value of the collateral, if any, in relation to the proposed loan amount. Most of our loans to individuals are collateralized, which management believes assists in limiting our exposure. Allowance for Loan Losses The allowance for loan losses is based on the most current review of the loan portfolio and is a result of multiple processes. First, we utilize historical net charge-off data to establish general reserve amounts for each class of loans. The historical charge-off figure is further adjusted through qualitative factors that include general trends in past dues, nonaccruals and classified loans to more effectively and promptly react to both positive and negative movements not reflected in the historical data. Second, our lenders have the primary responsibility for identifying problem loans based on customer financial stress and underlying collateral. These recommendations are reviewed by senior loan administration, the special assets department and the loan review department on a monthly basis. Third, the loan review department independently reviews the portfolio on an annual basis. The loan review department follows a board-approved annual loan review scope. The loan review scope encompasses a number of considerations including the size of the loan, the type of credit extended, the seasoning of the loan and the performance of the loan. The loan review scope, as it relates to size, focuses more on larger dollar loan relationships, typically aggregate debt of $500,000 or greater. The loan review officer also reviews specific reserves compared to general reserves to determine trends in comparative reserves as well as losses not reserved for prior to charge-off to determine the effectiveness of the specific reserve process. At each review, a subjective analysis methodology is used to grade the respective loan. Categories of grading vary in severity from loans that do not appear to have a significant probability of loss at the time of review to loans that indicate a probability that the entire balance of the loan will be uncollectible. If at the time of review we determine it is probable that we will not collect the principal and interest cash flows contractually due on the loan, estimates of future expected cash flows or appraisals of the collateral securing the debt are used to determine the necessary allowance. The internal loan review department maintains a list (“Watch List”) of all loans or loan relationships that are graded as having more than the normal degree of risk associated with them. In addition, a list of specifically reserved loans or loan relationships of $150,000 or more is updated on a quarterly basis in order to properly determine necessary allowances and keep management informed on the status of attempts to correct the deficiencies noted with respect to the loans. We calculate historical loss ratios for pools of loans with similar characteristics based on the proportion of actual charge-offs experienced, consistent with the characteristics of remaining loans, to the total population of loans in the pool. The historical gross loss ratios are updated quarterly based on actual charge-off experience and adjusted for qualitative factors. All loans are subject to individual analysis if determined to be impaired with the exception of consumer loans and loans secured by 1-4 family residential loans. Industry and our own experience indicates that a portion of our loans will become delinquent and a portion of our loans will require partial or full charge-off. Regardless of the underwriting criteria utilized, losses may occur as a result of various factors beyond our control, including, among other things, changes in market conditions affecting the value of properties used as collateral for loans and problems affecting the credit worthiness of the borrower and the ability of the borrower to make payments on the loan. Our determination of the appropriateness of the allowance for loan losses is based on various considerations, including an analysis of the risk characteristics of various classifications of loans, previous loan loss experience, specific loans which have loan loss potential, delinquency trends, estimated fair value of the underlying collateral, current economic conditions and geographic and industry loan concentration. Credit Quality Indicators We categorize loans into risk categories on an ongoing basis based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. We use the following definitions for risk ratings:
All accruing loans are reserved for as a group of similar type credits and included in the general portion of the allowance for loan losses. Loans to individuals and 1-4 family residential loans, including loans not accruing, are collectively evaluated and included in the general portion of the allowance for loan losses. All loans considered troubled debt restructurings (“TDR”) are evaluated individually for impairment. The general portion of the loan loss allowance is reflective of historical charge-off levels for similar loans adjusted for changes in current conditions and other relevant factors. These factors are likely to cause estimated losses to differ from historical loss experience and include:
These factors are also considered for the non-PCI purchased loan portfolio specifically in regards to changes in credit quality, past due, nonaccrual and charge-off trends. The following tables detail activity in the allowance for loan losses by portfolio segment for the periods presented (in thousands):
(1) Loans acquired with the Diboll acquisition were measured at fair value on November 30, 2017 with no carryover of allowance for loan loss. (2) Of the $8.4 million in provision for loan losses for the year ended December 31, 2018, $302,000 related to provision expense on PCI loans. Of the $4.7 million and $9.8 million recorded in provision for loan losses for the year ended December 31, 2017 and 2016, respectively, none related to provision expense on PCI loans.
The following tables present the balance in the allowance for loan losses by portfolio segment based on impairment method (in thousands):
The following tables present the recorded investment in loans by portfolio segment based on impairment method (in thousands):
(1) At December 31, 2018, PCI totals include approximately $14.0 million in new funds to a borrower that has since been upgraded to a Pass credit. The following tables set forth credit quality indicators by class of loans for the periods presented (in thousands):
Nonperforming Assets and Past Due Loans Nonaccrual loans are loans 90 days or more delinquent and collection in full of both the principal and interest is not expected. Additionally, some loans that are not delinquent or that are delinquent less than 90 days may be placed on nonaccrual status if it is probable that we will not receive contractual principal and interest payments in accordance with the terms of the respective loan agreement. When a loan is categorized as nonaccrual, the accrual of interest is discontinued and any accrued balance is reversed for financial statement purposes. Payments received on nonaccrual loans are applied to the outstanding principal balance. Payments of contractual interest are recognized as income only to the extent that full recovery of the principal balance of the loan is reasonably certain. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Other factors, such as the value of collateral securing the loan and the financial condition of the borrower, are considered in judgments as to potential loan loss. Nonaccrual loans and accruing loans past due more than 90 days include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. PCI loans are recorded at fair value at acquisition date. Although the PCI loans may be contractually delinquent, we do not classify these loans as past due or nonperforming when the timing and amount of expected cash flows can be reasonably estimated, as the loans were written down to fair value at the acquisition date and the accretable yield is recognized in interest income over the remaining life of the loan. However, subsequent to acquisition, we reassess PCI loans for additional impairment and record additional impairment in the event we conclude it is probable that we will be unable to collect all cash flows originally expected to be collected at acquisition plus any additional cash flows expected to be collected due to changes in estimates after acquisition. All such PCI loans for which we recognize subsequent impairment are reported as impaired loans in the financial statements. The following table sets forth nonperforming assets for the periods presented (in thousands):
Foreclosed assets include other real estate owned and repossessed assets. For 1-4 family residential real estate properties, a loan is recognized as a foreclosed property once legal title to the real estate property has been received upon completion of foreclosure or the borrower has conveyed all interest in the residential property through a deed in lieu of foreclosure. There were $147,000 and $154,000 in loans secured by 1-4 family residential properties for which formal foreclosure proceedings were in process as of December 31, 2018 and December 31, 2017, respectively. The following table sets forth the recorded investment in nonaccrual loans by class of loans for the periods presented (in thousands). The table excludes PCI loans measured at fair value at acquisition:
Loans are considered impaired if, based on current information and events, it is probable we will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for larger loans. The measurement of loss on impaired loans is generally based on the fair value of the collateral less selling costs if repayment is expected solely from the collateral or the present value of the expected future cash flows discounted at the historical effective interest rate stipulated in the loan agreement. In measuring the fair value of the collateral, in addition to relying on third party appraisals, we use assumptions, such as discount rates, and methodologies, such as comparison to the recent selling price of similar assets, consistent with those that would be utilized by unrelated third parties performing a valuation. Loans that are evaluated and determined not to meet the definition of an impaired loan are reserved for at the general reserve rate for its appropriate class. At the time a loss is probable in the collection of contractual amounts, specific reserves are allocated. Loans are charged off to the liquidation value of the collateral net of liquidation costs, if any, when deemed uncollectible or as soon as collection by liquidation is evident. The following tables set forth impaired loans by class of loans, including the unpaid contractual principal balance, the recorded investment and the allowance for loan losses for the periods presented (in thousands). Impaired loans include restructured and nonaccrual loans for which the allowance was measured in accordance with section 310-10 of ASC Topic 310, “Receivables.” There were no impaired loans recorded without an allowance for the years ended December 31, 2018 or 2017.
The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands):
The following table sets forth average recorded investment and interest income recognized on impaired loans by class of loans for the periods presented (in thousands). The table excludes PCI loans measured at fair value at acquisition that have not experienced further deterioration in credit quality subsequent to the acquisition date:
Troubled Debt Restructurings The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, restructuring amortization schedules and other actions intended to minimize potential losses. We may provide a combination of concessions which may include an extension of the amortization period, interest rate reduction and/or converting the loan to interest-only for a limited period of time. The following tables set forth the recorded balance of loans considered to be TDRs that were restructured and the type of concession during the periods presented (dollars in thousands):
The majority of loans restructured as TDRs during the year ended December 31, 2018 were modified with maturity extensions. Interest continues to be charged on principal balances outstanding during the extended term. Therefore, the financial effects of the recorded investment of loans restructured as TDRs during the year ended December 31, 2018 and 2017 were not significant. Generally, the loans identified as TDRs were previously reported as impaired loans prior to restructuring, and therefore, the modification did not impact our determination of the allowance for loan losses. On an ongoing basis, the performance of the TDRs is monitored for subsequent payment default. Payment default for TDRs is recognized when the borrower is 90 days or more past due. For the years ended December 31, 2018 and 2017, there were $216,000 and $138,000, respectively, of TDRs in default. Payment defaults for TDRs did not significantly impact the determination of the allowance for loan loss in either period presented. At December 31, 2018 and 2017, there were no commitments to lend additional funds to borrowers whose terms had been modified in TDRs. Purchased Credit Impaired Loans The following table presents the outstanding principal balance and carrying value for PCI loans for the periods presented (in thousands):
(1) At December 31, 2018, PCI totals include approximately $14.0 million in new funds to a borrower that has since been upgraded to a Pass credit. The following table presents the changes in the accretable yield during the periods for PCI loans (in thousands):
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PREMISES AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT
Assets with accumulated depreciation of $2.2 million and $915,000 were written off for the years ended December 31, 2018 and 2017, respectively. Depreciation expense was $8.4 million, $8.1 million and $8.0 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
DEPOSITS |
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Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEPOSITS | DEPOSITS
For the years ended December 31, 2018, 2017 and 2016, interest expense on time deposits of $250,000 or more was $8.5 million, $5.0 million and $3.2 million, respectively. At December 31, 2018, the scheduled maturities of certificates and other time deposits, including public accounts, were as follows (in thousands):
At December 31, 2018, we had $238.1 million in brokered certificates of deposit (“CDs”) that represented 5.4% of our deposits. Our brokered CDs had a weighted average cost of 223 basis points with maturities of less than one year. These brokered CDs are reflected in the CDs under $250,000 category. At December 31, 2017, we had $60.2 million in brokered CDs. We utilized brokered CDs, because they better matched overall ALCO objectives at the time of issuance. Our current policy allows for a maximum of $300 million in brokered CDs. At December 31, 2018 and 2017, we had approximately $16.2 million and $31.7 million, respectively, in deposits from related parties, including directors and named executive officers. The aggregate amount of demand deposit overdrafts that have been reclassified as loans were $1.6 million and $1.3 million at December 31, 2018 and 2017, respectively. |
BORROWING ARRANGEMENTS |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BORROWING ARRANGEMENTS | BORROWING ARRANGEMENTS Information related to borrowings is provided in the table below (dollars in thousands):
Maturities of the obligations associated with our borrowing arrangements based on scheduled repayments at December 31, 2018 are as follows (in thousands):
FHLB borrowings represent borrowings with fixed and floating interest rates ranging from 1.37% to 4.799% and with remaining maturities of overnight to 9.5 years at December 31, 2018. FHLB borrowings may be collateralized by FHLB stock, nonspecified loans and/or securities. From time to time, the Company may enter into various variable rate advance agreements with the FHLB. These advance agreements totaled $310.0 million at December 31, 2018 and $280.0 million December 31, 2017. Two of the variable rate advance agreements have interest rates of three-month LIBOR plus 0.021%, and one has an interest rate of three-month LIBOR minus 0.003%. The remaining variable rate advance agreements have interest rates ranging from one-month LIBOR plus 0.072% to one-month LIBOR plus 0.164%. In connection with obtaining these variable rate advance agreements, the Company also entered into various interest rate swap contracts that are treated as cash flow hedges under ASC Topic 815, “Derivatives and Hedging” that effectively converted the variable rate advance agreements to fixed interest rates ranging from 0.932% to 2.833% and original terms ranging from four years to ten years. The cash flows from the swaps are expected to be effective in hedging the variability in future cash flows attributable to fluctuations in the one-month and three-month LIBOR interest rates. During the first quarter of 2017, we terminated two interest rate swap contracts designated as cash flow hedges having a total notional value of $40.0 million. At the time of termination, we determined that the underlying hedged forecasted transactions were still probable of occurring. These transactions are reevaluated on a monthly basis to determine if the hedged forecasted transactions are still probable of occurring. If at a subsequent evaluation it is determined that the transactions will not occur, any related gains or losses recorded in AOCI are immediately recognized in earnings. Refer to “Note 12 - Derivative Financial Instruments and Hedging Activities” in our consolidated financial statements included in this report for a detailed description of our hedging policy and methodology related to derivative instruments. Southside Bank has three unsecured lines of credit for the purchase of overnight federal funds at prevailing rates with Frost Bank, TIB – The Independent Bankers Bank and Comerica Bank for $40.0 million, $15.0 million and $7.5 million, respectively. There were $28.0 million federal funds purchased at December 31, 2018. There were no federal funds purchased at December 31, 2017. Southside Bank has a $5.0 million line of credit with Frost Bank to be used to issue letters of credit, and at December 31, 2018, we had one outstanding letter of credit for $195,000. At December 31, 2018, the amount of additional funding Southside Bank could obtain from FHLB, collateralized by securities, FHLB stock and nonspecified loans, was approximately $1.17 billion, net of FHLB stock purchases required. Southside Bank currently has no outstanding letters of credit from FHLB held as collateral for its public fund deposits. Southside Bank enters into sales of securities under agreements to repurchase (“repurchase agreements”). These repurchase agreements totaled $8.8 million and $9.5 million at December 31, 2018 and 2017, respectively, and had maturities of less than two years. These repurchase agreements are secured by investment securities and are stated at the amount of cash received in connection with the transaction. |
LONG-TERM OBLIGATIONS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM OBLIGATIONS | LONG-TERM DEBT
As of December 31, 2018, the details of the subordinated notes and the trust preferred subordinated debentures are summarized below (dollars in thousands):
On September 19, 2016, the Company issued $100.0 million aggregate principal amount of fixed-to-floating rate subordinated notes that mature on September 30, 2026. This debt initially bears interest at a fixed rate of 5.50% through September 29, 2021 and thereafter, adjusts quarterly at a floating rate equal to three-month LIBOR plus 429.7 basis points. The proceeds from the sale of the subordinated notes were used for general corporate purposes, which included advances to the Bank to finance its activities. |
EMPLOYEE BENEFITS |
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Employee Benefits Including Defined Benefit Plans and Share-based Compensation Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS Deferred Compensation Agreements Southside Bank has deferred compensation agreements with 17 of its executive officers, which generally provide for payment of an aggregate amount of $6.9 million over a maximum period of 15 years after retirement or death. Of the 17 executives included in the agreements, payments have commenced to nine former executives and/or their beneficiaries. Three executive officers became eligible to receive payments in 2016 as a result of the acceptance of an early retirement package offered in late December of 2015. Deferred compensation expense was $201,000, $353,000 and $357,000 for the years ended December 31, 2018, 2017 and 2016, respectively. At December 31, 2018 and 2017, the deferred compensation plan liability totaled $3.4 million and $3.5 million, respectively. Health Insurance We provide accident and health insurance for substantially all employees through a self-funded insurance program. The cost of health care benefits was $6.5 million, $5.6 million and $4.9 million for the years ended December 31, 2018, 2017 and 2016, respectively. Our healthcare plan was amended to provide health insurance coverage for any retiree having 50 years of service with the Company. In addition, the eligible retiree must have Medicare coverage, including part A, part B and part D. There was one retiree participating in the health insurance plan as of December 31, 2018. There were two retirees participating in the health insurance plan as of December 31, 2017 and 2016. Employee Stock Ownership Plan We have an Employee Stock Ownership Plan (the “ESOP”) which covers substantially all employees. Contributions to the ESOP are at the sole discretion of the board of directors. We contributed $700,000 to the ESOP for the year ended December 31, 2018 and $350,000 for the years ended December 31, 2017 and 2016. At December 31, 2018 and 2017, the ESOP owned 277,492 and 280,542 shares of common stock, respectively. The number of shares has been adjusted as a result of stock dividends. These shares are treated as externally held shares for dividend and earnings per share calculations. Long-term Disability We have an officer’s long-term disability income policy which provides coverage in the event they become disabled as defined under its terms. Individuals are automatically covered under the policy if they (a) have been elected as an officer, (b) have been an employee of Southside Bank for three years and (c) receive earnings of $50,000 or more on an annual basis. The policy provides, among other things, that should a covered individual become totally disabled he would receive two-thirds of his current salary, not to exceed $15,000 per month. The benefits paid out of the policy are limited by the benefits paid to the individual under the terms of our other Company-sponsored benefit plans. Split Dollar Agreements We originally entered into split dollar agreements with eight of our executive officers. The agreements provide we will be the beneficiary of bank owned life insurance (“BOLI”) insuring the executives’ lives. The agreements provide the executives the right to designate the beneficiaries of the death benefits guaranteed in each agreement. The agreements originally provided for death benefits of an initial aggregate amount of $4.5 million. Prior to an executive’s retirement, his individual amount is increased annually on the anniversary date of the agreement by inflation adjustment factors of either 3% or 5%. As of December 31, 2018, three of the executives remain actively employed with us. Death benefits under this agreement were paid during 2018 for one retired covered officer and during 2013 for one active covered officer. As of December 31, 2018, the estimated death benefits for the six executives total $4.1 million. The agreements also state that after the executive’s retirement, we shall also pay an annual gross-up bonus to the executive in an amount sufficient to enable the executive to pay federal income tax on both the economic benefit and on the gross-up bonus. The expense required to record the post retirement liability associated with the split dollar post retirement bonuses was $172,000 for the year ended December 31, 2016, and a credit to expense of $250,000 and $3,000 for the years ended December 31, 2018 and 2017, respectively. For the years ended December 31, 2018 and 2017, the split dollar liability totaled $1.4 million and $1.9 million, respectively. 401(k) Plan We have a 401(k) defined contribution plan (the “401(k) Plan”) covering substantially all employees that permits each participant to make before- or after-tax contributions subject to certain limits imposed by the Internal Revenue Code. Beginning January 1, 2017, eligible employees may participate in the 401(k) Plan after they have worked at least 30 days with the Company. For the years ended December 31, 2018, 2017 and 2016, expense attributable to the 401(k) Plan amounted to $1.5 million, $613,000 and $562,000, respectively. Pension Plans We have a defined benefit pension plan (the “Plan”) pursuant to which participants are entitled to benefits based on final average monthly compensation and years of credited service determined in accordance with plan provisions. Entrance into the Plan by new employees was frozen effective December 31, 2005. Employees hired after December 31, 2005 are not eligible to participate in the Plan. All participants in the Plan are fully vested. Benefits are payable monthly commencing on the later of age 65 or the participant’s date of retirement. Eligible participants may retire at reduced benefit levels after reaching age 55. We contribute amounts to the pension fund sufficient to satisfy funding requirements of the Employee Retirement Income Security Act. Plan assets included 240,666 shares of our stock at December 31, 2018 and 2017. Our stock included in the Plan assets was purchased at fair value. The number of shares has been adjusted as a result of stock dividends, if applicable. During 2018, our funded status improved and at December 31, 2018, we had an unfunded status of $1.1 million compared to an unfunded status of $3.0 million at December 31, 2017. The improvement was a result of an increase in the discount rate at December 31, 2018 compared to December 31, 2017 to better reflect current market conditions, contributions to the plan since December 31, 2017 and the updated mortality assumption at December 31, 2018 compared to December 31, 2017, partially offset by a less than expected return on the fair value of plan assets since December 31, 2017. In late December 2015, we offered an early retirement package to 24 of our employees, of which 16 accepted the early retirement offer by the acceptance deadline of January 29, 2016. During 2016, the Plan provided special and contractual termination benefits of $1.5 million to 15 employees that accepted an early retirement package during the year ended December 31, 2016. In connection with the acquisition of Omni, we acquired the OmniAmerican Bank Defined Benefit Plan (the “Acquired Plan”) which was remeasured at fair value. The Acquired Plan originally called for benefits to be paid to eligible employees at retirement based primarily upon years of service and the compensation levels at retirement. As of December 31, 2006, the benefits under the Acquired Plan were frozen by Omni. No further benefits will be earned by employees after that date. In addition, no new participants may be added to the Acquired Plan after December 31, 2006. During 2018, our funded status improved, and at December 31, 2018, we had a funded status of $197,000 compared to an unfunded status of $361,000 at December 31, 2017. The improvement was a result of an increase in the discount rate at December 31, 2018 compared to December 31, 2017 to better reflect the current market conditions, contributions to the plan since December 31, 2017 and the updated mortality assumption at December 31, 2018 compared to December 31, 2017, partially offset by a less than expected return on the fair value of plan assets since December 31, 2017. We have a nonfunded supplemental retirement plan (the “Restoration Plan”) for our employees whose benefits under the principal retirement plan are reduced because of compensation deferral elections or limitations under federal tax laws. Both the Plan and the Restoration Plan were amended effective January 1, 2013 to change the formula for determining death benefits for participants who die while in service of the employer and who are early retirement eligible on their date of death. We use a measurement date of December 31 for our plans.
Amounts related to our defined benefit pension plans and restoration plan recognized as a component of other comprehensive (loss) income were as follows (in thousands):
Net amounts recognized in net periodic benefit cost and other comprehensive loss were as follows (in thousands):
Amounts recognized as a component of accumulated other comprehensive loss were as follows (in thousands):
Net periodic pension cost and postretirement benefit cost included the following components (in thousands):
The amounts in accumulated other comprehensive income (loss) that are expected to be recognized as components of net periodic benefit cost during 2019 are as follows (in thousands):
The Plan and Acquired Plan assets, which consist primarily of marketable equity and debt instruments, are valued using market quotations in active markets for identical assets, market quotations for similar assets in active or non-active markets or the net asset value (“NAV”) provided by the plan administrator. The Plans’ obligations and the annual pension expense are determined by independent actuaries and through the use of a number of assumptions. Key assumptions in measuring the Plans’ obligations include the discount rate, the rate of salary increases and the estimated future return on plan assets. In determining the discount rate, we utilized a cash flow matching analysis to determine a range of appropriate discount rates for the defined benefit pension plan and restoration plan. In developing the cash flow matching analysis, we had our actuaries construct a portfolio of high quality noncallable bonds to match as closely as possible the timing of future benefit payments of the plans at December 31, 2018. We utilized a bond selection-settlement approach that selects a portfolio of bonds from a universe of high quality corporate bonds rated AA by at least half of the rating agencies available. Based on the results of this cash flow matching analysis, we were able to determine an appropriate discount rate. Salary increase assumptions are based upon historical experience and anticipated future management actions. The expected long-term rate of return assumption reflects the average return expected based on the investment strategies and asset allocation of the assets invested to provide for the Plans’ liabilities. We considered broad equity and bond indices, long-term return projections and actual long-term historical Plan performance when evaluating the expected long-term rate of return assumption. The assumptions used to determine the benefit obligation were as follows:
The assumptions used to determine net periodic pension cost and postretirement benefit cost were as follows:
Material changes in pension benefit costs may occur in the future due to changes in these assumptions. Future annual amounts could be impacted by changes in the number of SSB Plan participants, changes in the level of benefits provided, changes in the discount rates, changes in the expected long-term rate of return, changes in the level of contributions to the Plan and other factors. The major categories of assets in our Plan and the Acquired Plan are presented in the following table (in thousands). Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 “Fair Value Measurements and Disclosures,” utilized to measure fair value (see “Note 13 – Fair Value Measurement”). Our Restoration Plan is unfunded.
We did not have any plan assets with Level 3 input fair value measurements at December 31, 2018 or 2017. Our overall investment strategy is to realize long-term growth of the Plan within acceptable risk parameters, while funding benefit payments from dividend and interest income, to the extent possible. The target allocations for plan assets are 55.0% equities, 44.5% fixed income and 0.5% cash equivalents. Equity securities are diversified among U.S. and international (both developed and emerging), large, mid and small caps, value and growth securities and real estate investment trusts (“REITs”). The investment objective of equity funds is long-term capital appreciation with current income. Fixed income securities include government agencies, CDs, corporate bonds, municipal bonds and MBS. The investment objective of fixed income funds is to maximize investment return while preserving investment principal. Mutual funds are primarily used because of the superior diversification they provide. As of December 31, 2018, expected future benefit payments related to the Plan, the Acquired Plan and the Restoration Plan were as follows (in thousands):
We do not expect to make additional contributions to the Plan, the Acquired Plan or the Restoration Plan in 2019. Share-based Incentive Plans 2017 Incentive Plan On May 10, 2017, our shareholders approved the Southside Bancshares, Inc. 2017 Incentive Plan (the “2017 Incentive Plan”), which is a stock-based incentive compensation plan. A total of 2,460,000 shares of our common stock were reserved and available for issuance pursuant to awards granted under the 2017 Incentive Plan. This amount includes a number of additional shares (not to exceed 410,000) underlying awards outstanding as of May 10, 2017 under the Company’s 2009 Incentive Plan that thereafter terminate or expire unexercised, or are cancelled, forfeited or lapse for any reason. Under the 2017 Incentive Plan, we are authorized to grant stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and qualified performance-based awards or any combination thereof to selected employees, officers, directors and consultants of the Company and its affiliates. As of December 31, 2018, there were 1,675,607 shares remaining available for grant for future awards. All share data for all periods presented has been adjusted to give retroactive recognition to stock dividends unless otherwise indicated. Reference to incentive plans refers to the 2017 Incentive Plan and predecessor incentive plans. As of December 31, 2018, 2017 and 2016, there were 612,740, 366,292 and 599,498 unvested awards outstanding, respectively. For the years ended December 31, 2018, 2017 and 2016, there was $2.3 million, $1.8 million and $1.5 million of share-based compensation expense related to the incentive plans, respectively, and $487,000, $635,000 and $539,000 of income tax benefit related to the stock compensation expense, respectively. As of December 31, 2018, 2017 and 2016, there was $5.8 million, $3.8 million and $5.6 million of unrecognized compensation cost related to the incentive plans, respectively. The remaining cost at December 31, 2018 is expected to be recognized over a weighted-average period of 2.79 years. The nonqualified stock options (“NQSOs”) have contractual terms of 10 years and vest in equal annual installments over either a three- or four-year period. The fair value of each restricted stock units (“RSUs”) is the ending stock price on the date of grant. The RSUs vest in equal annual installments over a three- or four-year period. Each award is evidenced by an award agreement that specifies the option price, if applicable, the duration of the award, the number of shares to which the award pertains and such other provisions as the Board determines. Historically, shares issued in connection with stock compensation awards have been issued from available authorized shares. Beginning in the second quarter of 2017, shares were issued from available treasury shares. Shares issued in connection with stock compensation awards along with other related information are presented in the following table without the retroactive recognition of stock dividends (in thousands, except share amounts):
The estimated weighted-average grant-date fair value per option and the underlying Black-Scholes option-pricing model assumptions are summarized in the following table for years in which we granted NQSOs pursuant to the incentive plans:
A combined summary of activity in our share-based plans as of December 31, 2018 is presented below:
Other information regarding options outstanding and exercisable as of December 31, 2018 is as follows:
The total intrinsic value of outstanding in-the-money stock options and outstanding in-the-money exercisable stock options was $3.7 million and $3.2 million at December 31, 2018, respectively. The weighted-average remaining contractual life of options exercisable at December 31, 2018 was 5.49 years. The total intrinsic value of stock options exercised during the years ended December 31, 2018, 2017 and 2016 was $1.4 million, $1.8 million and $1.3 million, respectively. Due to adoption of ASU 2016-09 “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” during 2017, there was no tax benefit realized for the deductions related to stock awards for the years ended December 31, 2018 or 2017. However, prior to adoption of the ASU, the tax benefit realized for the deductions related to stock awards was $332,000 for the year ended December 31, 2016. |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES INSTRUMENTS AND HEDGING ACTIVITIES DISCLOSURE | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Our hedging policy allows the use of interest rate derivative instruments to manage our exposure to interest rate risk or hedge specified assets and liabilities. These instruments may include interest rate swaps and interest rate caps and floors. All derivative instruments are carried on the balance sheet at their estimated fair value and are recorded in other assets or other liabilities, as appropriate. Derivative instruments may be designated as cash flow hedges of variable rate assets or liabilities, cash flow hedges of forecasted transactions, fair value hedges of a recognized asset or liability or as non-hedging instruments. Gains and losses on derivative instruments designated as cash flow hedges are recorded in accumulated other comprehensive income to the extent that they are effective. The amount recorded in other comprehensive income is reclassified to earnings in the same periods that the hedged cash flows impact earnings. The ineffective portion of changes in fair value is reported in current earnings. Gains and losses on derivative instruments designated as fair value hedges, as well as the change in fair value on the hedged item, are recorded in interest income in the consolidated statements of income. Gains and losses due to changes in fair value of the interest rate swap agreements completely offset changes in the fair value of the hedged portion of the hedged item. Therefore, no gain or loss has been recognized due to hedge ineffectiveness. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. From time to time, we enter into certain interest rate swap contracts on specific variable rate advance agreements with the FHLB. These interest rate swap contracts were designated as hedging instruments in cash flow hedges under ASC Topic 815. The objective of the interest rate swap contracts is to manage the expected future cash flows on $270.0 million of variable rate advance agreements with the FHLB. The cash flows from the swap are expected to be effective in hedging the variability in future cash flows attributable to fluctuations in the underlying LIBOR interest rate. During the three months ended June 30, 2018, we entered into partial term fair value hedges, as allowed under the recently adopted ASU 2017-12, for certain of our fixed rate callable available for sale municipal securities. These partial term hedges of selected cash flows covering the time periods to the call dates of the hedged securities are expected to be effective in offsetting changes in the fair value of the hedged securities. As of December 31, 2018, hedged securities with a carrying amount of $23.7 million are included in our AFS securities portfolio in our consolidated balance sheets. Interest rate swaps designated as partial-term fair value hedges are utilized to mitigate the effect of changing interest rates on the hedged securities. The hedging strategy converts a portion of the fixed interest rates on the securities to LIBOR-based variable interest rates. In accordance with ASC Topic 815, if a hedging item is terminated prior to maturity for a cash settlement, the existing gain or loss within accumulated other comprehensive income will continue to be reclassified into earnings during the period or periods in which the hedged forecasted transaction affects earnings unless it is probable that the forecasted transaction will not occur by the end of the originally specified time period. If the forecasted transaction is deemed probable to not occur, the derivative gain or loss reported in accumulated other comprehensive income shall be reclassified into earnings immediately. During the first quarter of 2017, we terminated two interest rate swap contracts designated as cash flow hedges. At the time of termination, we determined that the underlying hedged forecasted transactions were still probable of occurring. The existing gain in AOCI will be reclassified into earnings in the same periods the hedged forecasted transaction affects earnings. These transactions are reevaluated on a monthly basis to determine if the hedged forecasted transactions are still probable of occurring. If at a subsequent evaluation, it is determined that the transactions will not occur, any related gains or losses recorded in AOCI are immediately recognized in earnings. From time to time, we may enter into certain interest rate swaps, cap and floor contracts that are not designated as hedging instruments. These interest rate derivative contracts relate to transactions in which we enter into an interest rate swap, cap or floor with a customer while concurrently entering into an offsetting interest rate swap, cap or floor with a third party financial institution. We agree to pay interest to the customer on a notional amount at a variable rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, we agree to pay a third party financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. These interest rate derivative contracts allow our customers to effectively convert a variable rate loan to a fixed rate loan. The changes in the fair value of the underlying derivative contracts primarily offset each other and do not significantly impact our results of operations. We recognized swap fee income associated with these derivative contracts immediately based upon the difference in the bid/ask spread of the underlying transactions with the customer and the third party financial institution. The swap fee income is included in other noninterest income in our consolidated statements of income. At December 31, 2018, net derivative assets included $8.3 million of cash collateral received from counterparties under master netting agreements. The notional amounts of the derivative instruments represent the contractual cash flows pertaining to the underlying agreements. These amounts are not exchanged and are not reflected in the consolidated balance sheets. The fair value of the interest rate swaps are presented at net in other assets and other liabilities when a right of offset exists, based on transactions with a single counterparty that are subject to a legally enforceable master netting agreement. The following tables present the notional and estimated fair value amount of derivative positions outstanding (in thousands):
The summarized expected weighted average remaining maturity of the notional amount of interest rate swaps and the weighted average interest rates associated with the amounts expected to be received or paid on interest rate swap agreements are presented below (dollars in thousands). Variable rates received on pay fixed swaps are based on one-month or three-month LIBOR rates in effect at December 31, 2018 and December 31, 2017:
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FAIR VALUE MEASUREMENT |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT Fair value is the price that would be received upon the sale of an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. Valuation techniques including the market approach, the income approach and/or the cost approach are utilized to determine fair value. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Valuation policies and procedures are determined by our investment department and reported to our Asset/Liability Committee (“ALCO”) for review. An entity must consider all aspects of nonperforming risk, including the entity’s own credit standing, when measuring fair value of a liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A fair value hierarchy for valuation inputs gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Level 3 assets recorded at fair value on a nonrecurring basis at December 31, 2018 and 2017, included loans for which a specific allowance was established based on the fair value of collateral and commercial real estate for which fair value of the properties was less than the cost basis. For both asset classes, the unobservable inputs were the additional adjustments applied by management to the appraised values to reflect such factors as non-current appraisals and revisions to estimated time to sell. These adjustments are determined based on qualitative judgments made by management on a case-by-case basis and are not quantifiable inputs, although they are used in the determination of fair value. A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Certain financial assets are measured at fair value in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of fair value accounting or write-downs of individual assets. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with our monthly and/or quarterly valuation process. There were no transfers between Level 1 and Level 2 during the year ended December 31, 2018. Securities Available for Sale and Equity Investments with readily determinable fair values – U.S. Treasury securities and equity investments are reported at fair value utilizing Level 1 inputs. Other securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, we obtain fair value measurements from independent pricing services and obtain an understanding of the pricing methodologies used by these independent pricing services. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things, as stated in the pricing methodologies of the independent pricing services. We review and validate the prices supplied by the independent pricing services for reasonableness by comparison to prices obtained from, in most cases, two additional third party sources. For securities where prices are outside a reasonable range, we further review those securities, based on internal ALCO approved procedures, to determine what a reasonable fair value measurement is for those securities, given available data. Derivatives – Derivatives are reported at fair value utilizing Level 2 inputs. We obtain fair value measurements from three sources including an independent pricing service and the counterparty to the derivatives designated as hedges. The fair value measurements consider observable data that may include dealer quotes, market spreads, the U.S. Treasury yield curve, live trading levels, trade execution data, credit information and the derivatives’ terms and conditions, among other things. We review the prices supplied by the sources for reasonableness. In addition, we obtain a basic understanding of their underlying pricing methodology. We validate prices supplied by the sources by comparison to one another. Certain nonfinancial assets and nonfinancial liabilities measured at fair value on a recurring basis include reporting units measured at fair value and tested for goodwill impairment. Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis, which means that the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets and financial liabilities measured at fair value on a nonrecurring basis included foreclosed assets and impaired loans at December 31, 2018 and 2017. Foreclosed Assets – Foreclosed assets are initially recorded at fair value less costs to sell. The fair value measurements of foreclosed assets can include Level 2 measurement inputs such as real estate appraisals and comparable real estate sales information, in conjunction with Level 3 measurement inputs such as cash flow projections, qualitative adjustments and sales cost estimates. As a result, the categorization of foreclosed assets is Level 3 of the fair value hierarchy. In connection with the measurement and initial recognition of certain foreclosed assets, we may recognize charge-offs through the allowance for loan losses. Impaired Loans – Certain impaired loans may be reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using Level 3 inputs based on customized discounting criteria or appraisals. At December 31, 2018 and 2017, the impact of loans with specific reserves based on the fair value of the collateral was reflected in our allowance for loan losses. The following tables summarize assets measured at fair value on a recurring and nonrecurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands):
Disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, is required when it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other estimation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Such techniques and assumptions, as they apply to individual categories of our financial instruments, are as follows: Cash and cash equivalents - The carrying amount for cash and cash equivalents is a reasonable estimate of those assets’ fair value. Investment and mortgage-backed securities held to maturity - Fair values for these securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices for similar securities or estimates from independent pricing services. FHLB stock - The carrying amount of FHLB stock is a reasonable estimate of the fair value of those assets. Equity Investments - Equity investments with readily determinable fair values are presented at fair value based upon the currently available bid-and-ask quotations publicly available on a market or exchange. The carrying value of other equity investments without readily determinable fair values are measured at cost less impairment, if any, adjusted for observable price changes for an identical or similar investment of the same issuer. This carrying value is a reasonable estimate of the fair value of those assets. Loans receivable - With the adoption of ASU 2016-01 on January 1, 2018, we refined our methodology to estimate the fair value of our loan portfolio to an exit price notion with adjustments for liquidity, credit and prepayment factors. The guidance was applied on a prospective approach resulting in prior-periods no longer being comparable. See “Note 1 – Summary of Significant Accounting and Reporting Policies” for further information. For December 31, 2017, adjustable rate loans that repriced frequently and with no significant change in credit risk, the carrying amounts were a reasonable estimate of those assets’ fair value, and the fair value of fixed rate loans were estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Nonperforming loans continue to be estimated using discounted cash flow analyses or the underlying value of the collateral where applicable. Loans held for sale – The fair value of loans held for sale is determined based on expected proceeds, which are based on sales contracts and commitments. Deposit liabilities - The fair value of demand deposits, savings accounts and certain money market deposits is the amount on demand at the reporting date, which is the carrying value. Fair values for fixed rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered for deposits of similar remaining maturities. Federal funds purchased and repurchase agreements - Federal funds purchased generally have original terms to maturity of one day, and repurchase agreements generally have terms of less than one year. Both are considered short-term borrowings. Consequently, their carrying value is a reasonable estimate of fair value. FHLB borrowings - The fair value of these borrowings is estimated by discounting the future cash flows using rates at which borrowings would be made to borrowers with similar credit ratings and for the same remaining maturities. Subordinated notes - The fair value of the subordinated notes is estimated by discounting future cash flows using estimated rates at which long-term debt would be made to borrowers with similar credit ratings and for the remaining maturities. Trust preferred subordinated debentures - The fair value of the long-term debt is estimated by discounting future cash flows using estimated rates at which long-term debt would be made to borrowers with similar credit ratings and for the remaining maturities. The following tables present our financial assets and financial liabilities measured on a nonrecurring basis at both their respective carrying amounts and estimated fair value (in thousands):
The fair value estimate of financial instruments for which quoted market prices are unavailable is dependent upon the assumptions used. Consequently, those estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Accordingly, the aggregate fair value amounts presented in the above fair value tables do not necessarily represent their underlying value. |
SHAREHOLDERS' EQUITY |
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Regulatory Capital Requirements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Cash dividends declared and paid were $1.20, $1.11 and $1.01 per share for the years ended December 31, 2018, 2017 and 2016, respectively. Future dividends will depend on our earnings, financial condition and other factors which the board of directors considers to be relevant. Our dividend policy requires that any cash dividend payments made may not exceed consolidated earnings for that year. On December 6, 2016, we entered into an underwriting agreement, pursuant to which we sold 2,185,000 shares of our common stock at a price of $36.50 per share. We received $200.1 million in net proceeds, after deducting underwriting discounts and costs. These net proceeds were used primarily for general corporate purposes. We 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 effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. Our capital amounts and classification are also subject to qualitative judgments by the regulators regarding components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1, Tier 1 and Total Capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 Capital (as defined) to average assets (as defined). At December 31, 2018, we exceeded all regulatory minimum capital requirements. As of December 31, 2018, the most recent notification from the FDIC categorized us as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized we must maintain minimum Common Equity Tier 1 risk-based, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed our category.
Our payment of dividends is limited under regulation. The amount that can be paid in any calendar year without prior approval of our regulatory agencies cannot exceed the lesser of net profits (as defined) for that year plus the net profits for the preceding two calendar years or retained earnings. |
DIVIDEND REINVESTMENT AND COMMON STOCK REPURCHASE PLAN |
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Dividend Reinvestment and Common Stock Repurchase Plan [Abstract] | |
DIVIDEND REINVESTMENT AND COMMON STOCK REPURCHASE PLAN | DIVIDEND REINVESTMENT AND COMMON STOCK REPURCHASE PLAN We have in effect a Dividend Reinvestment Plan (“DRIP”) which allows enrolled shareholders to reinvest dividends paid to them by the Company into new shares of the our stock. The DRIP is funded by stock authorized but not yet issued. For the year ended December 31, 2018, 42,872 shares were issued under this plan at an average price of $34.45 per share, reflective of other trades at the time of each sale. For the year ended December 31, 2017, 43,650 shares were issued under this plan at an average price of $33.99 per share, reflective of other trades at the time of each sale. Our board continually evaluates the Company’s capital needs and those of Southside Bank and may, at their discretion, initiate, modify or discontinue an authorized stock repurchase plan. Repurchased shares are designated as treasury shares and are available for general corporate purposes, which may include possible use in connection with our share-based incentive plans and other distributions. During 2018, 1,459,148 shares of common stock were repurchased under an authorized stock repurchase plan at a cost of $47.2 million. During 2016, 443,426 shares of common stock were repurchased under a previously authorized stock repurchase plan at a cost of $10.2 million. No shares were repurchased during 2017. Subsequent to December 31, 2018 and through January 7, 2019, we repurchased 40,852 shares of common stock at an average price of $32.42, at which time our 2018 stock repurchase authorization expired. |
INCOME TAXES |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES The income tax expense included in the accompanying statements of income consists of the following (in thousands):
The components of the net deferred tax asset (liability) as of December 31, 2018 and 2017 are summarized below (in thousands):
A reconciliation of tax at statutory rates and total tax expense is as follows (dollars in thousands):
The Tax Cuts and Jobs Act (“Tax Act”) was enacted on December 22, 2017. The Tax Act reduced the U.S. federal corporate tax rate from 35% to 21%. We remeasured certain deferred tax assets and liabilities as of December 22, 2017 based on the rates at which they are expected to reverse in the future, which is generally 21%, by recording a provisional amount of $2.4 million. At December 31, 2018, we had completed our accounting for all of the enactment-date income tax effects of the Tax Act. During 2018, we recognized a benefit of $767,000 made to the provisional amounts recorded as of December 22, 2017 with the remeasurement of the net deferred tax asset. The Tax Act also repealed the existing Alternative Minimum Tax (“AMT”). As of December 31, 2018, we had fully realized the remaining AMT tax credit of $7.8 million. We file income tax returns in the U.S. federal jurisdiction and in certain states. We are no longer subject to U.S. federal income tax examinations by tax authorities for years before 2015 or Texas state tax examinations by tax authorities for years before 2014. No valuation allowance for deferred tax assets was recorded at December 31, 2018 or 2017 as management believes it is more likely than not that all of the deferred tax assets will be realized in future years. Unrecognized tax benefits were not material at December 31, 2018 or 2017. |
OFF-BALANCE-SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OFF-BALANCE-SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | OFF-BALANCE-SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES Financial Instruments with Off-Balance-Sheet Risk. In the normal course of business, we are a party to certain financial instruments with off-balance-sheet risk to meet the financing needs of our customers. These off-balance-sheet instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount reflected in the financial statements. The contract or notional amounts of these instruments reflect the extent of involvement and exposure to credit loss that we have in these particular classes of financial instruments. Commitments to extend credit are agreements to lend to a customer provided that the terms established in the contract are met. Commitments generally have fixed expiration dates and may require the payment of fees. Since some commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan commitments to customers and similarly do not necessarily represent future cash obligations. Financial instruments with off-balance-sheet risk were as follows (in thousands):
We apply the same credit policies in making commitments and standby letters of credit as we do for on-balance-sheet instruments. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, upon extension of credit is based on management’s credit evaluation of the borrower. Collateral held varies but may include cash or cash equivalents, negotiable instruments, real estate, accounts receivable, inventory, oil, gas and mineral interests, property, plant and equipment. Lease Commitments. We lease certain branch facilities and office equipment under operating leases. It is expected that certain leases will be renewed, or equipment replaced with new leased equipment, as these leases expire. Future minimum rental commitments due under non-cancelable operating leases at December 31, 2018 were as follows (in thousands):
Rent expense for branch facilities was $1.8 million, $1.7 million and $3.9 million for the years ended December 31, 2018, 2017 and 2016, respectively. Rent expense for leased equipment was $160,000, $178,000 and $261,000 for the years ended December 31, 2018, 2017 and 2016, respectively. It is expected that certain leases will be renewed, or equipment replaced with new leased equipment, as these leases expire. With the adoption of ASU 2016-02, “Leases (Topic 842),” we recognized a lease liability of $10.1 million and a related right-of-use asset of $9.8 million on our balance sheet as of January 1, 2019. See “Note 1 – Summary of Significant Accounting and Reporting Policies” for further information. We acquired a 202,000 square-foot office building in Fort Worth, Texas upon completion of the Omni acquisition that is used for a branch location and certain bank operations. We occupy approximately 41,000 square feet of the building and lease the remaining space to various tenants. Gross rental income from these leases was $3.0 million for the year ended December 31, 2018 and $3.1 million for both years ended December 31, 2017 and 2016. At December 31, 2018, non-cancelable operating leases for the building with future minimum lease payments are as follows (in thousands):
Securities. In the normal course of business we buy and sell securities. At December 31, 2018, there were $6.4 million of unsettled trades to purchase securities and no unsettled trades to sell securities. As of December 31, 2017, there were no unsettled trades to purchase securities and no unsettled trades to sell securities. Deposits. There were $15.2 million of unsettled issuances of brokered CDs at December 31, 2018. There were no unsettled issuances of brokered CDs at December 31, 2017. Litigation. We are involved with various litigation in the normal course of business. Management, after consulting with our legal counsel, believes that any liability resulting from litigation will not have a material effect on our financial position, results of operations or liquidity. |
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK |
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Risks and Uncertainties [Abstract] | |
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK | SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK Although we have a diversified loan portfolio, a significant portion of our loans are collateralized by real estate. Repayment of these loans is in part dependent upon the economic conditions in the market area. See “Item 1. Business – Market Area.” Part of the risk associated with real estate loans has been mitigated since 31.8% of this group represents loans collateralized by residential dwellings that are primarily owner occupied. Losses on this type of loan have historically been less than those on speculative properties. Many of the remaining real estate loans are collateralized primarily with non-owner occupied commercial real estate. The MBS we hold consist exclusively of U.S. agency pass-through securities which are either directly or indirectly backed by the full faith and credit of the United States Government or guaranteed by GSEs. The Government National Mortgage Association (“GNMA”) MBS are backed by the full faith and credit of the United States Government. The Fannie Mae and Freddie Mac U.S. agency GSE guaranteed MBS are not backed by the full faith and credit of the United States government. |
PARENT COMPANY FINANCIAL INFORMATION |
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Condensed Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PARENT COMPANY FINANCIAL INFORMATION | PARENT COMPANY FINANCIAL INFORMATION Condensed financial information for Southside Bancshares, Inc. (parent company only) was as follows (in thousands, except share amounts):
CONDENSED STATEMENTS OF INCOME
CONDENSED STATEMENTS OF CASH FLOWS
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QUARTERLY FINANCIAL INFORMATION OF REGISTRANT |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL INFORMATION OF REGISTRANT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) | QUARTERLY FINANCIAL INFORMATION OF REGISTRANT NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (in thousands, except share amounts)
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SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation. The consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of Southside Bancshares, Inc. (the “Company”), and its wholly-owned subsidiary, Southside Bank (“Southside Bank” or “the Bank”) and the nonbank subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. “Omni” refers to OmniAmerican Bancorp, Inc., a bank holding company acquired by Southside on December 17, 2014. On November 30, 2017, we acquired Diboll State Bancshares, Inc., a Texas corporation (“Diboll”) and the holding company for First Bank & Trust East Texas, a Texas banking association based in Diboll, Texas. See “Note 2 - Acquisition”. We determine if we have a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (“VIE”) under GAAP. Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. We consolidate voting interest entities in which we have all, or at least a majority of, the voting interest. As defined in applicable accounting standards, VIEs are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIEs economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. |
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Use of Estimates | Use of Estimates. In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. These estimates are subjective in nature and involve matters of judgment. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, assumptions used in the defined benefit plan and the fair values of financial instruments. The status of contingencies are particularly subject to change and significant assumptions used in periodic evaluation of securities for other-than-temporary impairment. Certain prior period amounts have been reclassified to conform to the current period presentation. |
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Segment Information | Segment Information. Operating segments are components of a business about which separate financial information is available and that are evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and assess performance. Our chief operating decision-maker uses consolidated results to make operating and strategic decisions. Therefore, we have determined that our business is conducted in one reportable segment. |
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Business Combinations | Business Combinations. Business combinations are accounted for using the acquisition method of accounting. Under this accounting method, the acquired company’s net assets are recorded at fair value on the date of acquisition, and the results of operations of the acquired company are combined with our results from that date forward. Costs related to the acquisition are expensed as incurred. The difference between the purchase price and the fair value of the net assets acquired (including intangible assets with finite lives) is recorded as goodwill. The accounting policy for goodwill and intangible assets is summarized in this note under the heading “Goodwill and Other Intangibles.” Acquired loans (non-impaired and impaired) are initially measured at fair value as of the acquisition date. The fair value estimates for acquired loans are based on the estimate of expected cash flows, both principal and interest and prepayments, discounted at prevailing market interest rates. Credit discounts representing the principal losses expected over the life of the loan are also a component of the initial fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. We evaluate acquired loans for impairment in accordance with the provisions of ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC 310-30”). Acquired loans are considered impaired if there is evidence of credit deterioration since origination and if it is probable at time of acquisition that all contractually required payments will not be collected. Expected cash flows at the acquisition date in excess of the fair value of the loans is referred to as the accretable yield and recorded as interest income over the life of the loans. Acquired impaired loans are not classified as nonaccrual or nonperforming as they are considered to be performing under the provisions of ASC 310-30. Subsequent to the acquisition date, increases in expected cash flows will generally result in a recovery of any previously recorded allowance for loan loss, to the extent applicable, and/or a reclassification from the nonaccretable difference to accretable yield, which will be recognized prospectively. The present value of any decreases in expected cash flows after the acquisition date will generally result in an impairment charge recorded as a provision for loan losses, resulting in an increase to the allowance for loan loss. For acquired non-impaired loans, the difference between the acquisition date fair value and the contractual amounts due at the acquisition date represents the fair value adjustment. Fair value adjustments may be discounts (or premiums) to a loan’s cost basis and are accreted (or amortized) to interest income over the loan’s remaining contractual life using the level yield method. |
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Cash Equivalents | Cash Equivalents. Cash equivalents, for purposes of reporting cash flow, include cash, amounts due from banks and federal funds sold that have an initial maturity of less than 90 days. We maintain deposits with other institutions in amounts that exceed federal deposit insurance coverage. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that we are not exposed to any significant credit risks on cash and cash equivalents. |
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Basic and Diluted Earnings per Common Share | Basic and Diluted Earnings per Common Share. Basic earnings per common share is based on net income divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of stock options granted using the treasury stock method. |
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Comprehensive Income | Comprehensive Income. Comprehensive income includes all changes in shareholders’ equity during a period, except those resulting from transactions with shareholders. Besides net income, other components of comprehensive income include the after tax effect of changes in the fair value of AFS securities, changes in the net unrealized loss on securities transferred to/from HTM, changes in the accumulated gain or loss on effective cash flow hedging instruments and changes in the funded status of defined benefit retirement plans. |
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Loans | Loans. All loans are stated at principal outstanding net of unearned discount and other deferred expenses or fees. Interest income on loans is recognized using the level yield method or simple interest method. Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal adjusted for any charge-offs, the allowance for loan losses, and any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. A loan is considered impaired, based on current information and events, if it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Substantially all of our impaired loans are collateral-dependent, and as such, are measured for impairment based on the fair value of the collateral. |
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Loans Held For Sale | Loans Held For Sale. Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses are recognized through a valuation allowance by charges to income. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. |
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Loan Fees | Loan Fees. We treat loan fees, net of direct costs, as an adjustment to the yield of the related loan over its term. |
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Allowance for Loan Losses | Allowance for Loan Losses. An allowance for loan losses is provided through charges to income in the form of a provision for loan losses. Loans which management believes are uncollectible are charged against this account with subsequent recoveries, if any, credited to the account. The amount of the allowance for loan losses is determined by management’s evaluation of the quality and inherent risks in the loan portfolio, economic conditions and other factors which warrant current recognition. |
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Nonaccrual Loans | Nonaccrual Loans. A loan is placed on nonaccrual when principal or interest is contractually past due 90 days or more unless, in the determination of management, the principal and interest on the loan are well collateralized and in the process of collection. In addition, a loan is placed on nonaccrual when, in the opinion of management, the future collectability of interest and principal is not expected. When classified as nonaccrual, accrued interest receivable on the loan is reversed and the future accrual of interest is suspended. Payments of contractual interest are recognized as income only to the extent that full recovery of the principal balance of the loan is reasonably certain. |
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Other Real Estate Owned | Other Real Estate Owned and Foreclosed Assets. Other Real Estate Owned (“OREO”) includes real estate acquired in full or partial settlement of loan obligations. OREO is initially carried at the fair value of the collateral net of estimated selling costs. Prior to foreclosure, the recorded amount of the loan is written down, if necessary, to the appraised fair value of the real estate to be acquired, less selling costs, by charging the allowance for loan losses. Any subsequent reduction in fair value net of estimated selling costs is charged to noninterest expense. Costs of maintaining and operating foreclosed properties are expensed as incurred and included in other expense in our income statement. Expenditures to complete or improve foreclosed properties are capitalized only if expected to be recovered; otherwise, they are expensed. |
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Foreclosed Assets | Other foreclosed assets are held for sale and are initially recorded at fair value less estimated selling costs at the date of foreclosure, by charging the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less costs to sell. Foreclosed assets are included in other assets in the accompanying consolidated balance sheets. Expenses from operations and changes in the valuation allowance are included in noninterest expense. |
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Securities | Securities. Available for Sale (“AFS”). Debt securities that will be held for indefinite periods of time, including securities that may be sold in response to changes in market interest or prepayment rates, needs for liquidity and changes in the availability of and the yield on alternative investments are classified as AFS. These assets are carried at fair value with unrealized gains and losses reported as a separate component of accumulated other comprehensive income (“AOCI”), net of tax. Fair value is determined using quoted market prices as of the close of business on the balance sheet date. If quoted market prices are not available, fair values are based on quoted market prices for similar securities or estimates from independent pricing services. Securities that are hedged with qualifying derivatives are carried at fair value with the change in fair value on both the hedged instrument and the securities recorded in interest income in the consolidated statements of income. Held to Maturity (“HTM”). Debt securities that management has the positive intent and ability to hold until maturity are classified as HTM and are carried at their remaining unpaid principal balance, net of unamortized premiums or unaccreted discounts. Prior to January 1, 2019, premiums were amortized and discounts were accreted to maturity, or in the case of mortgage-backed securities (“MBS”), over the estimated life of the security, using the level yield interest method. Effective January 1, 2019, premium callable securities will be amortized to the earliest call date and securities purchased at a discount will be accreted to maturity. Unrealized gains and losses on AFS securities are excluded from earnings and reported net of tax in AOCI until realized. Declines in the fair value of AFS or HTM securities below their cost that are deemed to be other-than-temporary are reflected in earnings as a realized loss if there is no ability or intent to hold to recovery. If the Company does not intend to sell and will not be required to sell prior to recovery of its amortized cost basis, only the credit component of the impairment is reflected in earnings as a realized loss with the noncredit portion recognized in other comprehensive income. In estimating other-than-temporary impairment losses, we consider (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) our intent and ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded in the month of the trade date and are determined using the specific identification method. Equity Investments. Beginning January 1, 2018, upon adoption of ASU 2016-01, equity investments with readily determinable fair values are stated at fair value with the unrealized gains and losses reported in other noninterest income in the consolidated statements of income. For periods prior to January 1, 2018, certain equity investments were classified as AFS and stated at fair value with unrealized gains and losses reported as a separate component of AOCI, net of tax. Equity investments without readily determinable fair values are recorded at cost less impairment, if any. |
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Securities with Limited Marketability | Securities with Limited Marketability. Securities with limited marketability, such as stock in the FHLB, are carried at cost and assessed for other-than-temporary impairment. |
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Premises and Equipment | Premises and Equipment. Land is carried at cost. Bank premises and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight line basis over the estimated useful lives of the related assets. Useful lives are estimated to be 15 to 40 years for premises and 3 to 10 years for equipment. Leasehold improvements are generally depreciated over the lesser of the term of the respective leases or the estimated useful lives of the improvements. Maintenance and repairs are charged to expense as incurred while major improvements and replacements are capitalized. |
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Bank Owned Life Insurance | Bank-Owned Life Insurance. The Company has purchased life insurance policies on certain key executives. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Changes in the net cash surrender value of the policies, as well as insurance proceeds received are reflected in noninterest income on the consolidated statements of income and are not subject to income taxes. |
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Goodwill and Other Intangibles | Goodwill and Other Intangibles. Other intangible assets consist primarily of core deposits and trust relationship intangibles. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. Goodwill and intangible assets that have indefinite useful lives are subject to at least an annual impairment test and more frequently if a triggering event occurs. If any such impairment is determined, a write-down is recorded. |
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Repurchase Agreements | Repurchase Agreements. We sell certain securities under agreements to repurchase. The agreements are treated as collateralized financing transactions and the obligations to repurchase securities sold are reflected as a liability in the accompanying consolidated balance sheets. The dollar amount of the securities underlying the agreements remains in the asset account. We determine the type of securities to pledge. Generally we pledge U.S. agency MBS. |
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Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities. Derivative financial instruments are carried on the consolidated balance sheets as other assets or other liabilities, as applicable, at estimated fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative financial instrument is determined by whether it has been designated and qualifies as part of a hedging relationship and, further, by the type of hedging relationship. We present derivative financial instruments at fair value in the consolidated balance sheets on a net basis when a right of offset exists, based on transactions with a single counterparty and any cash collateral paid to and/or received from that counterparty for derivative contracts that are subject to legally enforceable master netting arrangements. For derivative instruments that are designated and qualify as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item (i.e., the ineffective portion), if any, is recognized in current earnings during the period of change. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. During the three months ended June 30, 2018, we entered into partial term fair value hedges, as allowed under the recently adopted ASU 2017-12, for certain of our fixed rate callable available for sale municipal securities. These partial term hedges of selected cash flows covering the time periods to the call dates of the hedged securities are expected to be effective in offsetting changes in the fair value of the hedged securities. Interest rate swaps designated as partial-term fair value hedges are utilized to mitigate the effect of changing interest rates on the hedged securities. The hedging strategy converts a portion of the fixed interest rates on the securities to LIBOR-based variable interest rates. For derivatives designated as hedging instruments at inception, statistical regression analysis is used at inception and for each reporting period thereafter to assess whether the derivative used has been and is expected to be highly effective in offsetting changes in the fair value or cash flows of the hedged item. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. Net hedge ineffectiveness is recorded in “other noninterest income” on the consolidated statements of income. |
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Terminated Derivative Financial Instruments | Terminated Derivative Financial Instruments. In accordance with ASC Topic 815, if a hedging item is terminated prior to maturity for a cash settlement, the existing gain or loss within AOCI will continue to be reclassified into earnings during the period or periods in which the hedged forecasted transaction affects earnings unless it is probable that the forecasted transaction will not occur by the end of the originally specified time period. If the forecasted transaction is deemed probable to not occur, the derivative gain or loss reported in AOCI shall be reclassified into earnings immediately. During the first quarter of 2017, we terminated two interest rate swap contracts designated as cash flow hedges. At the time of termination, we determined that the underlying hedged forecasted transactions were still probable of occurring. These transactions are reevaluated on a monthly basis to determine if the hedged forecasted transactions are still probable of occurring. If at a subsequent evaluation it is determined that the transactions will not occur, any related gains or losses recorded in AOCI are immediately recognized in earnings. |
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Revenue Recognition | Revenue Recognition. Our revenue consists of net interest income on financial assets and financial liabilities and noninterest income. The classifications of our revenue are presented in the consolidated statements of income. On January 1, 2018, we adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” using the modified retrospective method. The revenue recognition principle in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 permits an entity to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset would have been one year or less. We generally expense sales commissions when incurred because the amortization period is within one year or less. These costs are recorded within salaries and employee benefits on the consolidated statements of income. Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of goods or services. Under ASU 2014-09’s practical expedient to recognize revenue equal to the amounts for which we have a right to invoice, revenue is measured as the amount of consideration we expect to receive in exchange for the transfer of those goods or services. The following summarizes our revenue recognition policies as they relate to revenue from contracts with customers under ASU 2014-09:
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Income Taxes | Income Taxes. We file a consolidated federal income tax return. Income tax expense represents the taxes expected to be paid or returned for current year taxes adjusted for the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in income in the period the change occurs. Uncertain tax positions arise when it is more likely than not that the tax position taken will be sustained upon examination by the appropriate tax authority. Any income tax benefit as well as penalties and interest related to income tax expense are recorded as a component of income tax expense. |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments. Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment. In cases where quoted market prices are not available, fair values are based on estimates using present value or other estimation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. |
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Defined Benefit Pension Plan | Defined Benefit Pension Plan. Defined benefit pension obligations and the annual pension costs are determined by independent actuaries and through the use of a number of assumptions that are reviewed by management. These assumptions include a compensation rate increase, a discount rate used to determine the current benefit obligation and a long-term expected rate of return on plan assets. Net periodic defined benefit pension expense includes service cost, interest cost based on the assumed discount rate, an expected return on plan assets, amortization of prior service cost and amortization of net actuarial gains or losses. Prior service costs include the impact of plan amendments on the liabilities and are amortized over the future service periods of active employees expected to receive benefits under the plan. Actuarial gains and losses result from experience different from that assumed and from changes in assumptions. Amortization of actuarial gains and losses is included as a component of net periodic defined benefit pension cost. The service cost component is recorded on our consolidated income statement as salaries and employee benefits in noninterest expense while all other components other than service cost are recorded in other noninterest expense. |
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Share-Based Awards | Share-Based Awards. Share-based compensation transactions are recognized as compensation cost in the income statement based on their fair values on the date of the grant and recorded over the vesting period. |
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Loss Contingencies | Loss Contingencies. Loss contingencies, including claims and legal actions arising in the ordinary course of business are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. |
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Trust Assets | Wealth Management and Trust Assets. Our wealth management and trust assets, other than cash on deposit at Southside Bank, are not included in the accompanying financial statements, because they are not our assets. |
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Accounting Pronouncements | Accounting Pronouncements: In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires most leases to be recognized on the balance sheet and requires enhanced disclosures. Consistent with legacy GAAP, the recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike legacy GAAP which requires only capital leases to be recognized on the balance sheet, the new ASU 2016-02 will require both finance (formerly known as “capital”) and operating leases to be recognized on the balance sheet. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The guidance originally required companies to apply the requirements in the year of adoption using a modified retrospective approach beginning in the earliest period presented; however, in July 2018, the FASB issued ASU 2018-11 “Leases (Topic 842): Targeted Improvements,” which provides lessees the option to apply the new leasing standard by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We adopted ASU 2016-02 on January 1, 2019, the effective date of the guidance, using the cumulative-effect adjustment option and did not revise comparative period information or disclosure. We also elected certain optional practical expedients including the hindsight practical expedient under which we considered the actual outcomes of lease renewals and terminations when measuring the lease term. Our operating leases relate primarily to bank branches and office space. In conjunction with the adoption, on January 1, 2019, we recognized lease liabilities of $10.1 million and related lease assets of $9.8 million on our balance sheet. The difference between the lease assets and lease liabilities primarily consists of deferred rent liabilities reclassified upon adoption to reduce the measurement of the lease assets. The adoption of the new standard will result in additional quantitative and qualitative disclosures. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. ASU 2016-13 also modifies the impairment model for AFS debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The guidance requires companies to apply the requirements in the year of adoption through a cumulative-effect adjustment with some aspects of the update requiring a prospective transition approach. We are currently evaluating the potential impact of the pending adoption of ASU 2016-13 on our consolidated financial statements. We plan to adopt on January 1, 2020, the effective date. We have developed a project plan and have assigned a project team to complete the analysis needed to implement the guidance. We are also currently working with a third party vendor solution to assist with the application of ASU 2016-13. The team is currently completing the data collection and anticipates running parallel models during 2019. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 is intended to simplify goodwill impairment testing by eliminating the second step of the analysis which requires the calculation of the implied fair value of goodwill to measure a goodwill impairment charge. The update requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual and interim goodwill impairment tests performed in periods beginning after December 15, 2019. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The guidance requires companies to apply the requirements prospectively in the year of adoption. ASU 2017-04 is not expected to have a significant impact on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” Under current GAAP, premiums on callable debt securities are generally amortized over the contractual life of the security. ASU 2017-08 requires the premium on callable debt securities to be amortized to the earliest call date. If the debt security is not called at the earliest call date, the holder of the debt security would be required to reset the effective yield on the debt security based on the payment terms required by the debt security. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The guidance requires companies to apply the requirements on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We adopted the new standard on January 1, 2019, the effective date of the guidance, and recognized a cumulative-effect adjustment to reduce retained earnings by $16.5 million, before tax. |
ACQUISITION (Tables) |
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Schedule of consideration paid | The components of the consideration paid are shown in the following table (in thousands):
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Schedule of Goodwill | The following table reflects the changes in the carrying amount of our goodwill for the year ended December 31, 2018 (in thousands):
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Schedule of assets acquired and liabilities assumed | The estimated fair values of the assets acquired and liabilities assumed as of the closing date of the transaction adjusted for the subsequent measurement period adjustments are shown in the following table (in thousands):
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Schedule of acquired PCI loans | The table below details the PCI loan portfolio at the Diboll acquisition date (in thousands):
The following table presents the outstanding principal balance and carrying value for PCI loans for the periods presented (in thousands):
(1) At December 31, 2018, PCI totals include approximately $14.0 million in new funds to a borrower that has since been upgraded to a Pass credit. |
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Schedule of acquired loans that were considered performing | Acquired loans that were considered performing at the Diboll acquisition date and therefore not subject to ASC 310-30 are shown below (in thousands):
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EARNINGS PER SHARE (Tables) |
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Earnings per share on a basic and diluted basis | Earnings per share on a basic and diluted basis has been adjusted to give retroactive recognition to stock dividends and is calculated as follows (in thousands, except per share amounts):
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
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Schedule of accumulated other comprehensive income (loss) by component | The changes in accumulated other comprehensive loss by component are as follows for the years presented (in thousands):
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Reclassification out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive (loss) income into net income are presented below (in thousands):
(1) Included in interest income on the consolidated statements of income. (2) Listed as net (loss) gain on sale of securities available for sale on the consolidated statements of income. (3) Included in interest expense for FHLB borrowings on the consolidated statements of income.
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SECURITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost and estimated fair value of investment and mortgage-backed securities | The amortized cost, gross unrealized gains and losses, and estimated fair value of investment and mortgage-backed securities available for sale and held to maturity as of December 31, 2018 and 2017 are reflected in the tables below (in thousands):
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Unrealized loss on securities | The following tables represent the estimated fair value and unrealized loss on investment and mortgage-backed securities AFS and HTM as of December 31, 2018 and December 31, 2017 (in thousands):
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Interest income recognized on securities | The following tables reflect interest income recognized on securities for the periods presented (in thousands):
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Amortized cost and fair value of securities presented by contractual maturity | The amortized cost and estimated fair value of AFS and HTM securities at December 31, 2018, are presented below by contractual maturity (in thousands). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. MBS are presented in total by category due to the fact that MBS typically are issued with stated principal amounts, and the securities are backed by pools of mortgages that have loans with varying maturities. The characteristics of the underlying pool of mortgages, such as fixed-rate or adjustable-rate, as well as prepayment risk, are passed on to the security holder. The term of a mortgage-backed pass-through security thus approximates the term of the underlying mortgages and can vary significantly due to prepayments.
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Unrealized and realized gains (losses) recognized in net income on equity investments | The following is a summary of unrealized and realized gains and losses on equity investments recognized in other noninterest income in the consolidated statements of income during the year ended December 31, 2018 (in thousands):
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LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Classification of loans in the consolidated balance sheets | Loans in the accompanying consolidated balance sheets are classified as follows (in thousands):
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Activity in the allowance for loan losses by portfolio segment | The following tables detail activity in the allowance for loan losses by portfolio segment for the periods presented (in thousands):
(1) Loans acquired with the Diboll acquisition were measured at fair value on November 30, 2017 with no carryover of allowance for loan loss. (2) Of the $8.4 million in provision for loan losses for the year ended December 31, 2018, $302,000 related to provision expense on PCI loans. Of the $4.7 million and $9.8 million recorded in provision for loan losses for the year ended December 31, 2017 and 2016, respectively, none related to provision expense on PCI loans.
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Balance in the allowance for loan losses by portfolio segment based on impairment method | The following tables present the balance in the allowance for loan losses by portfolio segment based on impairment method (in thousands):
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Balance in recorded investments in loans by portfolio segment based on impairment method | The following tables present the recorded investment in loans by portfolio segment based on impairment method (in thousands):
(1) At December 31, 2018, PCI totals include approximately $14.0 million in new funds to a borrower that has since been upgraded to a Pass credit. |
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Summary of loans by credit quality indicators | The following tables set forth credit quality indicators by class of loans for the periods presented (in thousands):
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Summary of nonperforming assets for the period | The following table sets forth nonperforming assets for the periods presented (in thousands):
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Recorded investment in nonaccrual by class of loans | The following table sets forth the recorded investment in nonaccrual loans by class of loans for the periods presented (in thousands). The table excludes PCI loans measured at fair value at acquisition:
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Summary of impaired loans by class of loans for the period | The following tables set forth impaired loans by class of loans, including the unpaid contractual principal balance, the recorded investment and the allowance for loan losses for the periods presented (in thousands). Impaired loans include restructured and nonaccrual loans for which the allowance was measured in accordance with section 310-10 of ASC Topic 310, “Receivables.” There were no impaired loans recorded without an allowance for the years ended December 31, 2018 or 2017.
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Aging of recorded investment in past due loans by class of loans | The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands):
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Average recorded investment and interest income on impaired loans | The following table sets forth average recorded investment and interest income recognized on impaired loans by class of loans for the periods presented (in thousands). The table excludes PCI loans measured at fair value at acquisition that have not experienced further deterioration in credit quality subsequent to the acquisition date:
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Schedule of recorded investment in loans modified | The following tables set forth the recorded balance of loans considered to be TDRs that were restructured and the type of concession during the periods presented (dollars in thousands):
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Schedule of acquired PCI loans | The table below details the PCI loan portfolio at the Diboll acquisition date (in thousands):
The following table presents the outstanding principal balance and carrying value for PCI loans for the periods presented (in thousands):
(1) At December 31, 2018, PCI totals include approximately $14.0 million in new funds to a borrower that has since been upgraded to a Pass credit. |
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Schedule of changes in accretable yield for PCI loans | The following table presents the changes in the accretable yield during the periods for PCI loans (in thousands):
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PREMISES AND EQUIPMENT (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of premises and equipment |
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DEPOSITS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of deposits at year-end |
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Schedule of maturities of time deposits | At December 31, 2018, the scheduled maturities of certificates and other time deposits, including public accounts, were as follows (in thousands):
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BORROWING ARRANGEMENTS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt | Information related to borrowings is provided in the table below (dollars in thousands):
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Schedule of maturities of borrowings | Maturities of the obligations associated with our borrowing arrangements based on scheduled repayments at December 31, 2018 are as follows (in thousands):
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LONG-TERM OBLIGATIONS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt by entity |
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Schedule of subordinated borrowing | As of December 31, 2018, the details of the subordinated notes and the trust preferred subordinated debentures are summarized below (dollars in thousands):
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EMPLOYEE BENEFITS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits Including Defined Benefit Plans and Share-based Compensation Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in projected benefit obligation and fair value of plan assets |
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Schedule of amounts recognized in other comprehensive income (loss) | Amounts related to our defined benefit pension plans and restoration plan recognized as a component of other comprehensive (loss) income were as follows (in thousands):
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Schedule of amounts in accumulated other comprehensive income (loss) recognized in net periodic benefit cost during period | Net amounts recognized in net periodic benefit cost and other comprehensive loss were as follows (in thousands):
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Schedule of amounts recognized as a component of accumulated other comprehensive loss | Amounts recognized as a component of accumulated other comprehensive loss were as follows (in thousands):
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Schedule of components of net periodic pension cost and postretirement benefit cost | Net periodic pension cost and postretirement benefit cost included the following components (in thousands):
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Schedule of amounts in accumulated other comprehensive income (loss) that is expected to be recognized as a component of net periodic benefit cost during the next fiscal year | The amounts in accumulated other comprehensive income (loss) that are expected to be recognized as components of net periodic benefit cost during 2019 are as follows (in thousands):
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Schedule of assumptions used to determine benefit obligation and net periodic benefit cost | The assumptions used to determine the benefit obligation were as follows:
The assumptions used to determine net periodic pension cost and postretirement benefit cost were as follows:
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Schedule of allocation of plan assets | The major categories of assets in our Plan and the Acquired Plan are presented in the following table (in thousands). Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 “Fair Value Measurements and Disclosures,” utilized to measure fair value (see “Note 13 – Fair Value Measurement”). Our Restoration Plan is unfunded.
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Schedule of expected future benefit payments related to pension and postretirement plans | As of December 31, 2018, expected future benefit payments related to the Plan, the Acquired Plan and the Restoration Plan were as follows (in thousands):
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Schedule of shares issued in connection with stock compensation awards | Shares issued in connection with stock compensation awards along with other related information are presented in the following table without the retroactive recognition of stock dividends (in thousands, except share amounts):
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Schedule of stock option valuation assumptions | The estimated weighted-average grant-date fair value per option and the underlying Black-Scholes option-pricing model assumptions are summarized in the following table for years in which we granted NQSOs pursuant to the incentive plans:
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Schedule of stock options and restricted stock units award activity | A combined summary of activity in our share-based plans as of December 31, 2018 is presented below:
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Schedule of shares stock option exercise price range | Other information regarding options outstanding and exercisable as of December 31, 2018 is as follows:
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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative instruments in statement of financial position, fair value | The following tables present the notional and estimated fair value amount of derivative positions outstanding (in thousands):
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Weighted average maturity and interest rates on risk management interest rate swaps | The summarized expected weighted average remaining maturity of the notional amount of interest rate swaps and the weighted average interest rates associated with the amounts expected to be received or paid on interest rate swap agreements are presented below (dollars in thousands). Variable rates received on pay fixed swaps are based on one-month or three-month LIBOR rates in effect at December 31, 2018 and December 31, 2017:
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FAIR VALUE MEASUREMENT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of fair value measurement on recurring and nonrecurring basis segregated by level of valuation inputs within fair value hierarchy utilized to measure fair value |
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Financial assets, financial liabilities, and unrecognized financial instruments at carrying amount and fair value | The following tables present our financial assets and financial liabilities measured on a nonrecurring basis at both their respective carrying amounts and estimated fair value (in thousands):
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SHAREHOLDERS' EQUITY (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of compliance with regulatory capital requirements under ranking regulations | As of December 31, 2018, the most recent notification from the FDIC categorized us as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized we must maintain minimum Common Equity Tier 1 risk-based, Tier 1 risk-based, Total risk-based and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed our category.
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of income tax provision | The income tax expense included in the accompanying statements of income consists of the following (in thousands):
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Schedule of net deferred tax assets and liabilities | The components of the net deferred tax asset (liability) as of December 31, 2018 and 2017 are summarized below (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of income tax reconciliation | A reconciliation of tax at statutory rates and total tax expense is as follows (dollars in thousands):
|
OFF-BALANCE-SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Scheduled maturities of unused commitments | Financial instruments with off-balance-sheet risk were as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future minimum commitments of non-cancelable operating leases | Future minimum rental commitments due under non-cancelable operating leases at December 31, 2018 were as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future minimum rental payments receivable under non-cancelable operating leases | At December 31, 2018, non-cancelable operating leases for the building with future minimum lease payments are as follows (in thousands):
|
PARENT COMPANY FINANCIAL INFORMATION (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed balance sheets | Condensed financial information for Southside Bancshares, Inc. (parent company only) was as follows (in thousands, except share amounts):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed statements of income | CONDENSED STATEMENTS OF INCOME
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed statements of cash flows | CONDENSED STATEMENTS OF CASH FLOWS
|
QUARTERLY FINANCIAL INFORMATION OF REGISTRANT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of quarterly financial information |
|
SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018
USD ($)
banking_offices
segment
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Organization and Basis of Presentation [Abstract] | |||
Number of branches | banking_offices | 59 | ||
Number of branches in grocery stores | banking_offices | 15 | ||
Segment Information [Abstract] | |||
Number of reportable segments | segment | 1 | ||
Cash and Cash Equivalents [Abstract] | |||
Cash on deposit with the Federal Reserve required to meet regulatory reserve and clearing requirements | $ 34,100,000 | $ 32,200,000 | |
Goodwill and Other Intangible Assets [Abstract] | |||
Goodwill impairment loss | 0 | 0 | |
Amortization expense of intangible assets | 5,213,000 | 1,955,000 | $ 1,940,000 |
Core deposit intangible | |||
Goodwill and Other Intangible Assets [Abstract] | |||
Intangible assets, net | 13,100,000 | ||
Amortization expense of intangible assets | $ 1,800,000 | ||
Trust relationship intangible | |||
Goodwill and Other Intangible Assets [Abstract] | |||
Intangible assets, net | 4,500,000 | ||
Core Deposit Intangible and Trust Relationship Intangible [Member] | |||
Goodwill and Other Intangible Assets [Abstract] | |||
Amortization expense of intangible assets | $ 5,100,000 | $ 1,800,000 | |
Premises | Minimum | |||
Premises and Equipment [Abstract] | |||
Estimated useful life | 15 years | ||
Premises | Maximum | |||
Premises and Equipment [Abstract] | |||
Estimated useful life | 40 years | ||
Equipment | Minimum | |||
Premises and Equipment [Abstract] | |||
Estimated useful life | 3 years | ||
Equipment | Maximum | |||
Premises and Equipment [Abstract] | |||
Estimated useful life | 10 years |
SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES - Reclassifications (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Jan. 01, 2018 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Amortization expense on intangibles | $ 5,213,000 | $ 1,955,000 | $ 1,940,000 | |
Securities available for sale, at estimated fair value | 1,538,755,000 | |||
Securities held to maturity, at carrying value (estimated fair value of $159,781 and $921,800, respectively) | 162,931,000 | 909,506,000 | ||
Decrease in debit card expense | 1,090,000 | 3,889,000 | 3,136,000 | |
Decrease in deposit services income | 25,082,000 | 21,785,000 | 20,702,000 | |
Decrease in brokerage services income | 1,987,000 | 2,422,000 | 2,127,000 | |
Cumulative effect of ASU 2016-01 | (85,000) | |||
Increase (decrease) in salaries and employee benefits expense | 70,643,000 | 60,779,000 | 61,628,000 | |
(Decrease) increase in other noninterest expense | 12,283,000 | 10,528,000 | 14,524,000 | |
Securities available for sale | 2,013,485,000 | |||
Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease in debit card expense | 4,000,000 | |||
Decrease in deposit services income | 4,030,000 | |||
Decrease in brokerage expense | 641,000 | |||
Decrease in brokerage services income | 641,000 | |||
Accounting Standards Update 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Securities available for sale, at estimated fair value | $ (5,900,000) | |||
Equity investments | 5,900,000 | |||
Accounting Standards Update 2017-07 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (decrease) in salaries and employee benefits expense | 304,000 | (2,400,000) | ||
(Decrease) increase in other noninterest expense | (304,000) | $ 2,400,000 | ||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2017-12 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Securities held to maturity, at carrying value (estimated fair value of $159,781 and $921,800, respectively) | (743,400,000) | |||
Securities available for sale | 743,400,000 | |||
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of ASU 2016-01 | (85,000) | |||
Retained Earnings | Accounting Standards Update 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of ASU 2016-01 | $ (85,000) | |||
Core Deposit Intangible and Trust Relationship Intangible [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Amortization expense on intangibles | $ 5,100,000 | $ 1,800,000 |
SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES - Stock Dividend (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Dividends, Common Stock [Abstract] | |||
Stock dividends declared or paid | $ 0 | $ 24,960,000 | $ 34,765,000 |
Stock dividend, percentage of common stock | 2.50% | 5.00% |
SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES - Accounting Pronouncements (Details) - Subsequent Event $ in Millions |
Jan. 01, 2019
USD ($)
|
---|---|
Accounting Standards Update 2016-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Increase in Operating Liabilities | $ 10.1 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 9.8 |
Accounting Standards Update 2017-08 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative Effect on Retained Earnings, before Tax | $ (16.5) |
ACQUISITION - Narrative (Details) $ / shares in Units, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Nov. 30, 2017
USD ($)
banking_offices
$ / shares
shares
|
Dec. 31, 2018
USD ($)
banking_offices
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Business Acquisition [Line Items] | ||||
Number of branches | banking_offices | 59 | |||
Acquisition, goodwill | $ 201,116 | $ 201,246 | ||
Acquisition expense | 2,413 | 4,352 | $ 0 | |
Acquisition, legal and consulting fees | 4,035 | 3,844 | 4,946 | |
Acquisition, software and data processing expense | 3,996 | 3,027 | 2,911 | |
Diboll State Bancshares, Inc. | ||||
Business Acquisition [Line Items] | ||||
Percentage of company acquired | 100.00% | |||
Number of branches | banking_offices | 17 | |||
Acquisition, number of shares issued | shares | 5,500,000 | |||
Company stock consideration, stock issued per each share of acquiree stock (in shares) | shares | 6.5021 | |||
Cash consideration, per share of acquiree stock (in dollars per share) | $ / shares | $ 28.12 | |||
Acquisition, closing stock price per share (in dollars per share) | $ / shares | $ 36.2 | |||
Acquisition, total merger consideration | $ 224,305 | |||
Acquisition, assets | 1,030,000 | |||
Acquisition, loans | 621,318 | 621,318 | ||
Acquisition, investment securities | 234,447 | 234,447 | ||
Acquisition, liabilities assumed | 910,700 | |||
Acquisition, deposits | 899,300 | |||
Acquisition, goodwill | 109,726 | 109,596 | 109,726 | |
Acquisition expense | 4,400 | |||
Acquisition, legal and consulting fees | 2,400 | |||
Acquisition, software and data processing expense | $ 1,900 | |||
Cost related to issuance of shares related to the merger | 277 | |||
Pro forma net income (loss) | 64,100 | 58,000 | ||
Pro forma revenue | $ 270,900 | $ 257,800 | ||
Core deposits | Diboll State Bancshares, Inc. | ||||
Business Acquisition [Line Items] | ||||
Acquisition, finite-lived intangible assets | $ 14,700 | |||
Amortization period | 9 years | |||
Trust Relationship Intangible | Diboll State Bancshares, Inc. | ||||
Business Acquisition [Line Items] | ||||
Acquisition, finite-lived intangible assets | $ 5,400 | |||
Amortization period | 13 years | |||
Non-solicitation Agreements | Diboll State Bancshares, Inc. | ||||
Business Acquisition [Line Items] | ||||
Acquisition, finite-lived intangible assets | $ 240 | |||
Amortization period | 3 years |
ACQUISITION - Schedule of Components of Consideration Paid (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Nov. 30, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Business Acquisition [Line Items] | ||||
Common stock issued | $ 0 | $ 200,364 | $ 0 | |
Cash | $ 0 | $ 23,941 | $ 0 | |
Diboll State Bancshares, Inc. | ||||
Business Acquisition [Line Items] | ||||
Common stock issued | $ 200,364 | |||
Cash | 23,941 | |||
Total consideration transferred | $ 224,305 |
ACQUISITION - Goodwill (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
| |
Goodwill [Roll Forward] | |
Balance as of December 31, 2017 | $ 201,246 |
Less: measurement period adjustments | (130) |
Balance as of December 31, 2018 | $ 201,116 |
ACQUISITION - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Nov. 29, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Nov. 30, 2017 |
|
Assets of acquired bank: | ||||
Goodwill | $ 201,116 | $ 201,246 | ||
Diboll State Bancshares, Inc. | ||||
Assets of acquired bank: | ||||
Cash, cash equivalents and amounts due from banks | 115,598 | $ 115,598 | ||
Other investments | 610 | 610 | ||
Securities available for sale | 234,447 | 234,447 | ||
Loans | 621,318 | 621,318 | ||
Property and equipment | 26,256 | 26,256 | ||
Other assets | 7,052 | 7,052 | ||
Core deposit intangible | 14,700 | 14,700 | ||
Trust relationship intangible | 5,400 | 5,400 | ||
Goodwill | 109,596 | $ 109,726 | 109,726 | |
Liabilities of acquired bank: | ||||
Deposits | (899,307) | (899,307) | ||
Deferred tax liability, net | (7,718) | (7,802) | ||
Other liabilities | (3,647) | (3,693) | ||
Fair value of assets acquired net of liabilities assumed | $ 224,305 | $ 224,305 | ||
Measurement Period Adjustments | ||||
Cash, cash equivalents and amounts due from banks | $ 0 | |||
Other investments | 0 | |||
Securities available for sale | 0 | |||
Loans | 0 | |||
Property and equipment | 0 | |||
Other assets | 0 | |||
Core deposit intangible | 0 | |||
Trust relationship intangible | 0 | |||
Goodwill | (130) | |||
Deposits | 0 | |||
Deferred tax liability, net | (84) | |||
Other liabilities | (46) | |||
Fair value of assets acquired net of liabilities assumed | $ 0 |
ACQUISITION - PCI Loans (Details) - Diboll State Bancshares, Inc. $ in Thousands |
Nov. 30, 2017
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Contractually required principal and interest payments | $ 59,286 |
Nonaccretable difference | 4,560 |
Cash flows expected to be collected | 54,726 |
Accretable difference | 15,389 |
Fair value of loans acquired with a deterioration of credit quality | $ 39,337 |
ACQUISITION - Acquired Performing Loans (Details) - Diboll State Bancshares, Inc. - Performing loans $ in Thousands |
Nov. 30, 2017
USD ($)
|
|||
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Fair Value at Acquisition Date | $ 581,981 | |||
Contractual Amounts Receivable | 823,974 | |||
Cash Flows Not Expected to be Collected at Acquisition Date | 127,399 | [1] | ||
Construction Real Estate Loans | ||||
Business Acquisition [Line Items] | ||||
Fair Value at Acquisition Date | 40,122 | |||
Contractual Amounts Receivable | 56,905 | |||
Cash Flows Not Expected to be Collected at Acquisition Date | 330 | [1] | ||
1-4 Family Residential Real Estate Loans | ||||
Business Acquisition [Line Items] | ||||
Fair Value at Acquisition Date | 82,654 | |||
Contractual Amounts Receivable | 130,167 | |||
Cash Flows Not Expected to be Collected at Acquisition Date | 26,894 | [1] | ||
Commercial Real Estate Loans | ||||
Business Acquisition [Line Items] | ||||
Fair Value at Acquisition Date | 319,623 | |||
Contractual Amounts Receivable | 484,529 | |||
Cash Flows Not Expected to be Collected at Acquisition Date | 97,431 | [1] | ||
Commercial Loans | ||||
Business Acquisition [Line Items] | ||||
Fair Value at Acquisition Date | 82,083 | |||
Contractual Amounts Receivable | 87,688 | |||
Cash Flows Not Expected to be Collected at Acquisition Date | 1,226 | [1] | ||
Municipal Loans | ||||
Business Acquisition [Line Items] | ||||
Fair Value at Acquisition Date | 7,848 | |||
Contractual Amounts Receivable | 9,998 | |||
Cash Flows Not Expected to be Collected at Acquisition Date | 28 | |||
Loans to Individuals | ||||
Business Acquisition [Line Items] | ||||
Fair Value at Acquisition Date | 49,651 | |||
Contractual Amounts Receivable | 54,687 | |||
Cash Flows Not Expected to be Collected at Acquisition Date | $ 1,490 | [1] | ||
|
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Basic and Diluted Earnings: | |||||||||||
Net Income | $ 17,381 | $ 20,303 | $ 20,203 | $ 16,251 | $ 10,331 | $ 14,511 | $ 14,481 | $ 14,989 | $ 74,138 | $ 54,312 | $ 49,349 |
Basic weighted-average shares outstanding (in shares) | 34,951 | 29,841 | 27,118 | ||||||||
Add: Stock options (in shares) | 165 | 206 | 129 | ||||||||
Diluted weighted-average shares outstanding (in shares) | 35,116 | 30,047 | 27,247 | ||||||||
Basic Earnings Per Share: | |||||||||||
Earnings per common share - basic (in dollars per share) | $ 0.50 | $ 0.58 | $ 0.58 | $ 0.46 | $ 0.33 | $ 0.49 | $ 0.49 | $ 0.51 | $ 2.12 | $ 1.82 | $ 1.82 |
Diluted Earnings Per Share: | |||||||||||
Earnings per common share - diluted (in dollars per share) | $ 0.50 | $ 0.58 | $ 0.57 | $ 0.46 | $ 0.33 | $ 0.49 | $ 0.49 | $ 0.51 | $ 2.11 | $ 1.81 | $ 1.81 |
Antidilutive securities from non-qualified stock options excluded from calculating earnings | |||||||||||
Number of antidilutive options (in shares) | 356 | 154 | 359 |
ACCUMULATED OTHER COMPREHENSIVE LOSS - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Jan. 01, 2018 |
|||||||||
AOCI Attributable to Parent, Net of Tax | ||||||||||||
Beginning balance, net of tax | $ 754,140 | $ 518,274 | $ 444,062 | |||||||||
Income tax benefit (expense) | 3,703 | (5,374) | 10,667 | |||||||||
Ending balance, net of tax | 731,291 | 754,140 | 518,274 | |||||||||
Cumulative effect of ASU 2016-01, net of tax | (85) | |||||||||||
Retained Earnings | ||||||||||||
AOCI Attributable to Parent, Net of Tax | ||||||||||||
Beginning balance, net of tax | 32,851 | 30,098 | 41,527 | |||||||||
Ending balance, net of tax | 64,797 | 32,851 | 30,098 | |||||||||
Cumulative effect of ASU 2016-01, net of tax | (85) | |||||||||||
Unrealized Gains (Losses) on Securities | ||||||||||||
AOCI Attributable to Parent, Net of Tax | ||||||||||||
Beginning balance, net of tax | (16,295) | (23,708) | (239) | |||||||||
Other comprehensive (loss) income before reclassifications | (21,956) | 15,217 | (33,699) | |||||||||
Reclassified from accumulated other comprehensive income | 3,190 | [1] | 630 | (2,407) | ||||||||
Income tax benefit (expense) | 3,941 | (5,546) | 12,637 | |||||||||
Net current-period other comprehensive (loss) income, net of tax | (14,825) | 10,301 | (23,469) | |||||||||
Reclassification of certain deferred tax effects | [2] | (2,888) | ||||||||||
Ending balance, net of tax | (31,120) | (16,295) | (23,708) | |||||||||
Unrealized Gains (Losses) on Derivatives | ||||||||||||
AOCI Attributable to Parent, Net of Tax | ||||||||||||
Beginning balance, net of tax | 6,399 | 4,595 | 0 | |||||||||
Other comprehensive (loss) income before reclassifications | 2,351 | 276 | 5,255 | |||||||||
Reclassified from accumulated other comprehensive income | (1,406) | 754 | 1,815 | |||||||||
Income tax benefit (expense) | (198) | (360) | (2,475) | |||||||||
Net current-period other comprehensive (loss) income, net of tax | 747 | 670 | 4,595 | |||||||||
Reclassification of certain deferred tax effects | [2] | 1,134 | ||||||||||
Ending balance, net of tax | 7,146 | 6,399 | 4,595 | |||||||||
Net Prior Service (Cost) Credit | ||||||||||||
AOCI Attributable to Parent, Net of Tax | ||||||||||||
Reclassified from accumulated other comprehensive income | [3] | (7) | (8) | (8) | ||||||||
Net Gain (Loss) | ||||||||||||
AOCI Attributable to Parent, Net of Tax | ||||||||||||
Reclassified from accumulated other comprehensive income | [3] | 2,189 | 1,613 | 1,828 | ||||||||
Total | ||||||||||||
AOCI Attributable to Parent, Net of Tax | ||||||||||||
Beginning balance, net of tax | (36,298) | (38,493) | (18,683) | |||||||||
Other comprehensive (loss) income before reclassifications | (21,599) | 10,283 | (31,705) | |||||||||
Reclassified from accumulated other comprehensive income | 3,966 | [1] | 2,989 | 1,228 | ||||||||
Income tax benefit (expense) | 3,703 | (5,374) | 10,667 | |||||||||
Net current-period other comprehensive (loss) income, net of tax | (13,930) | 7,898 | (19,810) | |||||||||
Reclassification of certain deferred tax effects | [2] | (5,703) | ||||||||||
Ending balance, net of tax | (50,228) | (36,298) | (38,493) | |||||||||
Accounting Standards Update 2016-01 | Retained Earnings | ||||||||||||
AOCI Attributable to Parent, Net of Tax | ||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption, Before Tax | $ (107) | |||||||||||
Cumulative effect of ASU 2016-01, net of tax | $ (85) | |||||||||||
Defined Benefit Pension Plan | Net Prior Service (Cost) Credit | ||||||||||||
AOCI Attributable to Parent, Net of Tax | ||||||||||||
Beginning balance, net of tax | (133) | (133) | (44) | |||||||||
Other comprehensive (loss) income before reclassifications | 0 | 8 | (129) | |||||||||
Reclassified from accumulated other comprehensive income | (7) | (8) | (8) | |||||||||
Income tax benefit (expense) | 1 | 0 | 48 | |||||||||
Net current-period other comprehensive (loss) income, net of tax | (6) | 0 | (89) | |||||||||
Reclassification of certain deferred tax effects | [2] | 0 | ||||||||||
Ending balance, net of tax | (139) | (133) | (133) | |||||||||
Defined Benefit Pension Plan | Net Gain (Loss) | ||||||||||||
AOCI Attributable to Parent, Net of Tax | ||||||||||||
Beginning balance, net of tax | (26,269) | (19,247) | (18,400) | |||||||||
Other comprehensive (loss) income before reclassifications | (1,994) | (5,218) | (3,132) | |||||||||
Reclassified from accumulated other comprehensive income | 2,189 | 1,613 | 1,828 | |||||||||
Income tax benefit (expense) | (41) | 532 | 457 | |||||||||
Net current-period other comprehensive (loss) income, net of tax | 154 | (3,073) | (847) | |||||||||
Reclassification of certain deferred tax effects | [2] | (3,949) | ||||||||||
Ending balance, net of tax | $ (26,115) | $ (26,269) | $ (19,247) | |||||||||
|
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||||
Amortization of unrealized losses | $ 1,244 | $ 1,255 | $ 429 | ||||||||||||||||||||
Tax benefit (expense) | $ (2,521) | $ (2,192) | $ (3,360) | $ (2,090) | $ (5,870) | $ (3,890) | $ (3,353) | $ (3,008) | (10,163) | (16,121) | (10,325) | ||||||||||||
Total reclassifications for the period, net of tax | (3,048) | (1,943) | (799) | ||||||||||||||||||||
Unrealized gains (losses) | |||||||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||||
Reclassified from accumulated other comprehensive income (loss) | (3,190) | [1] | (630) | 2,407 | |||||||||||||||||||
Realized net gain (loss) on interest rate swap derivatives | |||||||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||||
Reclassified from accumulated other comprehensive income (loss) | 1,406 | (754) | (1,815) | ||||||||||||||||||||
Net actuarial loss | |||||||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||||
Reclassified from accumulated other comprehensive income (loss) | [2] | (2,189) | (1,613) | (1,828) | |||||||||||||||||||
Prior service credit | |||||||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||||
Reclassified from accumulated other comprehensive income (loss) | [2] | 7 | 8 | 8 | |||||||||||||||||||
Amortization of pension plan | |||||||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||||
Reclassified from accumulated other comprehensive income (loss) | (2,182) | (1,605) | (1,820) | ||||||||||||||||||||
Tax benefit | 459 | 562 | 637 | ||||||||||||||||||||
Total reclassifications for the period, net of tax | (1,723) | (1,043) | (1,183) | ||||||||||||||||||||
Unrealized losses on securities transferred | Reclassification out of accumulated other comprehensive income | Unrealized gains (losses) | |||||||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||||
Amortization of unrealized losses | [3] | (1,244) | (1,255) | (429) | |||||||||||||||||||
Tax benefit (expense) | 261 | 439 | 150 | ||||||||||||||||||||
Net of tax | (983) | (816) | (279) | ||||||||||||||||||||
Unrealized gains and losses on available for sale securities | Reclassification out of accumulated other comprehensive income | Unrealized gains (losses) | |||||||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||||
Tax benefit (expense) | 386 | (219) | (993) | ||||||||||||||||||||
Net of tax | (1,453) | 406 | 1,843 | ||||||||||||||||||||
Realized net (loss) gain on sale of securities | [4] | (1,839) | 625 | 2,836 | |||||||||||||||||||
Interest Rate Swaps | Reclassification out of accumulated other comprehensive income | Realized net gain (loss) on interest rate swap derivatives | |||||||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||||
Tax benefit (expense) | (277) | 290 | 635 | ||||||||||||||||||||
Net of tax | 1,042 | (538) | (1,180) | ||||||||||||||||||||
Realized net gain (loss) on interest rate swaps | [5] | 1,319 | (828) | (1,815) | |||||||||||||||||||
Interest Rate Swaps | Reclassification out of accumulated other comprehensive income | Amortization of unrealized gains on terminated interest rate swaps | |||||||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||||
Tax benefit (expense) | (18) | (26) | 0 | ||||||||||||||||||||
Net of tax | 69 | 48 | 0 | ||||||||||||||||||||
Realized net gain (loss) on interest rate swaps | [5] | $ 87 | $ 74 | $ 0 | |||||||||||||||||||
|
SECURITIES - Schedule of Debt and Equity Securities Components (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
AVAILABLE FOR SALE: | ||
Amortized cost | $ 2,013,485 | |
Gross unrealized gain | 10,554 | |
Gross unrealized loss | 34,603 | |
Estimated fair value | 1,989,436 | |
Amortized cost | $ 1,541,967 | |
Gross unrealized gains | 9,163 | |
Gross unrealized loss | 12,375 | |
Estimated fair value | 1,538,755 | |
HELD TO MATURITY: | ||
Amortized cost | 162,931 | 909,506 |
Gross unrealized gains | 360 | 16,322 |
Gross unrealized losses | 3,510 | 4,028 |
Estimated fair value | 159,781 | 921,800 |
U.S. Government Agency Debentures | ||
AVAILABLE FOR SALE: | ||
Amortized cost | 108,869 | |
Gross unrealized gains | 0 | |
Gross unrealized loss | 0 | |
Estimated fair value | 108,869 | |
State and Political Subdivisions | ||
AVAILABLE FOR SALE: | ||
Amortized cost | 728,142 | |
Gross unrealized gain | 6,115 | |
Gross unrealized loss | 17,656 | |
Estimated fair value | 716,601 | |
Amortized cost | 392,760 | |
Gross unrealized gains | 3,895 | |
Gross unrealized loss | 3,991 | |
Estimated fair value | 392,664 | |
HELD TO MATURITY: | ||
Amortized cost | 3,083 | 413,632 |
Gross unrealized gains | 5 | 10,879 |
Gross unrealized losses | 42 | 2,583 |
Estimated fair value | 3,046 | 421,928 |
Other Stocks and Bonds | ||
AVAILABLE FOR SALE: | ||
Amortized cost | 3,000 | |
Gross unrealized gain | 0 | |
Gross unrealized loss | 291 | |
Estimated fair value | 2,709 | |
Amortized cost | 5,024 | |
Gross unrealized gains | 31 | |
Gross unrealized loss | 0 | |
Estimated fair value | 5,055 | |
Other Equity Securities | ||
AVAILABLE FOR SALE: | ||
Amortized cost | 6,027 | |
Gross unrealized gains | 0 | |
Gross unrealized loss | 107 | |
Estimated fair value | 5,920 | |
Residential | ||
AVAILABLE FOR SALE: | ||
Amortized cost | 738,585 | |
Gross unrealized gain | 3,498 | |
Gross unrealized loss | 9,111 | |
Estimated fair value | 732,972 | |
Amortized cost | 720,930 | |
Gross unrealized gains | 4,476 | |
Gross unrealized loss | 7,377 | |
Estimated fair value | 718,029 | |
HELD TO MATURITY: | ||
Amortized cost | 59,655 | 129,044 |
Gross unrealized gains | 154 | 1,631 |
Gross unrealized losses | 1,140 | 239 |
Estimated fair value | 58,669 | 130,436 |
Commercial | ||
AVAILABLE FOR SALE: | ||
Amortized cost | 543,758 | |
Gross unrealized gain | 941 | |
Gross unrealized loss | 7,545 | |
Estimated fair value | 537,154 | |
Amortized cost | 308,357 | |
Gross unrealized gains | 761 | |
Gross unrealized loss | 900 | |
Estimated fair value | 308,218 | |
HELD TO MATURITY: | ||
Amortized cost | 100,193 | 366,830 |
Gross unrealized gains | 201 | 3,812 |
Gross unrealized losses | 2,328 | 1,206 |
Estimated fair value | $ 98,066 | $ 369,436 |
SECURITIES - Unrealized Loss on Securities (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Available-for-sale, Unrealized Loss Position [Abstract] | |||||
Less than 12 Months, fair value | $ 115,902 | ||||
Less than 12 months, fair value | $ 614,799 | ||||
More than 12 Months, fair value | 1,345,243 | ||||
More than 12 months, fair value | 288,113 | ||||
Total fair value | 1,461,145 | ||||
Total fair value | 902,912 | ||||
Available-for-sale Securities, Unrealized Loss Position, Accumulated Loss) | |||||
Less than 12 Months, unrealized loss | 1,247 | ||||
Less than 12 months, unrealized loss | 3,879 | ||||
More than 12 Months, unrealized loss | 33,356 | ||||
More than 12 months, unrealized loss | 8,496 | ||||
Total unrealized loss | 34,603 | ||||
Total unrealized loss | 12,375 | ||||
Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, fair value | 5,460 | 246,806 | |||
More than 12 months, fair value | 142,236 | 73,024 | |||
Total fair value | 147,696 | 319,830 | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 Months, unrealized loss position | 63 | 1,746 | |||
More than 12 Months, unrealized loss position | 3,447 | 2,282 | |||
Unrealized loss position | 3,510 | 4,028 | |||
State and Political Subdivisions | |||||
Available-for-sale, Unrealized Loss Position [Abstract] | |||||
Less than 12 Months, fair value | 98,112 | ||||
Less than 12 months, fair value | 32,341 | ||||
More than 12 Months, fair value | 399,205 | ||||
More than 12 months, fair value | 172,006 | ||||
Total fair value | 497,317 | ||||
Total fair value | 204,347 | ||||
Available-for-sale Securities, Unrealized Loss Position, Accumulated Loss) | |||||
Less than 12 Months, unrealized loss | 899 | ||||
Less than 12 months, unrealized loss | 121 | ||||
More than 12 Months, unrealized loss | 16,757 | ||||
More than 12 months, unrealized loss | 3,870 | ||||
Total unrealized loss | 17,656 | ||||
Total unrealized loss | 3,991 | ||||
Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, fair value | 235 | 85,608 | |||
More than 12 months, fair value | 2,022 | 56,736 | |||
Total fair value | 2,257 | 142,344 | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 Months, unrealized loss position | 1 | 807 | |||
More than 12 Months, unrealized loss position | 41 | 1,776 | |||
Unrealized loss position | 42 | 2,583 | |||
Other Stocks and Bonds | |||||
Available-for-sale, Unrealized Loss Position [Abstract] | |||||
Less than 12 Months, fair value | 2,709 | ||||
More than 12 Months, fair value | 0 | ||||
Total fair value | 2,709 | ||||
Available-for-sale Securities, Unrealized Loss Position, Accumulated Loss) | |||||
Less than 12 Months, unrealized loss | 291 | ||||
More than 12 Months, unrealized loss | 0 | ||||
Total unrealized loss | 291 | ||||
Other Equity Securities | |||||
Available-for-sale, Unrealized Loss Position [Abstract] | |||||
Less than 12 months, fair value | [1] | 5,920 | |||
More than 12 months, fair value | [1] | 0 | |||
Total fair value | [1] | 5,920 | |||
Available-for-sale Securities, Unrealized Loss Position, Accumulated Loss) | |||||
Less than 12 months, unrealized loss | [1] | 107 | |||
More than 12 months, unrealized loss | [1] | 0 | |||
Total unrealized loss | [1] | 107 | |||
Residential | |||||
Available-for-sale, Unrealized Loss Position [Abstract] | |||||
Less than 12 Months, fair value | 5,552 | ||||
Less than 12 months, fair value | 429,742 | ||||
More than 12 Months, fair value | 488,334 | ||||
More than 12 months, fair value | 102,973 | ||||
Total fair value | 493,886 | ||||
Total fair value | 532,715 | ||||
Available-for-sale Securities, Unrealized Loss Position, Accumulated Loss) | |||||
Less than 12 Months, unrealized loss | 27 | ||||
Less than 12 months, unrealized loss | 3,232 | ||||
More than 12 Months, unrealized loss | 9,084 | ||||
More than 12 months, unrealized loss | 4,145 | ||||
Total unrealized loss | 9,111 | ||||
Total unrealized loss | 7,377 | ||||
Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, fair value | 4,826 | 24,707 | |||
More than 12 months, fair value | 51,046 | 2,736 | |||
Total fair value | 55,872 | 27,443 | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 Months, unrealized loss position | 60 | 157 | |||
More than 12 Months, unrealized loss position | 1,080 | 82 | |||
Unrealized loss position | 1,140 | 239 | |||
Commercial | |||||
Available-for-sale, Unrealized Loss Position [Abstract] | |||||
Less than 12 Months, fair value | 9,529 | ||||
Less than 12 months, fair value | 146,796 | ||||
More than 12 Months, fair value | 457,704 | ||||
More than 12 months, fair value | 13,134 | ||||
Total fair value | 467,233 | ||||
Total fair value | 159,930 | ||||
Available-for-sale Securities, Unrealized Loss Position, Accumulated Loss) | |||||
Less than 12 Months, unrealized loss | 30 | ||||
Less than 12 months, unrealized loss | 419 | ||||
More than 12 Months, unrealized loss | 7,515 | ||||
More than 12 months, unrealized loss | 481 | ||||
Total unrealized loss | 7,545 | ||||
Total unrealized loss | 900 | ||||
Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less than 12 months, fair value | 399 | 136,491 | |||
More than 12 months, fair value | 89,168 | 13,552 | |||
Total fair value | 89,567 | 150,043 | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Less than 12 Months, unrealized loss position | 2 | 782 | |||
More than 12 Months, unrealized loss position | 2,326 | 424 | |||
Unrealized loss position | $ 2,328 | $ 1,206 | |||
|
SECURITIES - Interest Income on Securities (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Interest Income Recognized on Securities [Abstract] | |||||
U.S. Treasury | $ 218 | $ 519 | $ 739 | ||
U.S. Government Agency Debentures | 89 | 178 | 0 | ||
State and Political Subdivisions | 24,960 | 24,530 | 22,654 | ||
Other Stocks and Bonds | 110 | 125 | 195 | ||
Other Equity Securities | [1] | 0 | 116 | 123 | |
Mortgage-backed Securities | 41,584 | 41,361 | 37,450 | ||
Total interest income on securities | $ 66,961 | $ 66,829 | $ 61,161 | ||
|
SECURITIES - Amortized Cost and Estimated Fair Value of Investments in Debt Securities By Contractual Maturity (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Available for sale, Amortized Cost | ||
Due in one year or less | $ 3,559 | |
Due after one year through five years | 39,169 | |
Due after five years through ten years | 176,316 | |
Due after ten years | 512,098 | |
Total available-for-sale investment securities | 731,142 | |
Mortgage-backed Securities | 1,282,343 | |
Amortized cost | 2,013,485 | |
Available for sale Securities, Fair Value | ||
Due in one year or less | 3,602 | |
Due after one year through five years | 40,055 | |
Due after five years through ten years | 175,181 | |
Due after ten years | 500,472 | |
Subtotal | 719,310 | |
Mortgage-backed Securities and Other Equity Securities | 1,270,126 | |
Total | 1,989,436 | |
Held to Maturity, Amortized Cost | ||
Due in one year or less | 116 | |
Due after one year through five years | 1,696 | |
Due after five years through ten years | 1,271 | |
Due after ten years | 0 | |
Subtotal | 3,083 | |
Mortgage-backed Securities | 159,848 | |
Amortized cost | 162,931 | $ 909,506 |
Held to Maturity, Fair Value | ||
Due in one year or less | 115 | |
Due after one year through five years | 1,674 | |
Due after five years through ten years | 1,257 | |
Due after ten years | 0 | |
Subtotal | 3,046 | |
Mortgage-backed Securities | 156,735 | |
Total | $ 159,781 | $ 921,800 |
SECURITIES - Unrealized and Realized Gain (Loss) Recognized in Net Income on Equity Investments (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
| |
Gain (Loss) on Securities [Line Items] | |
Net losses recognized during the period on equity investments | $ (117) |
Less: Net gains (losses) recognized during the period on equity investments sold during the period | 0 |
Unrealized losses recognized during the reporting period on equity investments still held at the reporting date | $ (117) |
SECURITIES - Narrative (Details) |
12 Months Ended | |||
---|---|---|---|---|
Jan. 01, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Investment [Line Items] | ||||
Transferred Securities, Unrealized Loss, Before Tax | $ 15,300,000 | $ 17,400,000 | ||
Securities transferred, Unrealized Loss, Net of Tax | 12,100,000 | 13,800,000 | ||
Fair value of securities transferred from AFS to HTM | 0 | 0 | $ 157,083,000 | |
Securities available for sale, at estimated fair value | 1,989,436,000 | |||
Unrealized net gain on securities transferred from held to maturity to available for sale under the transition guidance enumerated in ASU 2017-12 | $ 11,881,000 | 0 | 0 | |
AFS securities and HTM securities with other-than-temporary impairment | 0 | |||
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ||||
Net realized (loss) gain on AFS securities | $ (1,800,000) | |||
Gross realized gains on AFS securities | 2,000,000 | |||
Gross realized loss on AFS securities | 3,800,000 | |||
Net realized (loss) gain on AFS securities | 625,000 | 2,800,000 | ||
Gross realized gains on AFS securities | 5,000,000 | 6,300,000 | ||
Gross realized loss on AFS securities | 4,400,000 | 3,400,000 | ||
Carrying value of investment securities pledged as collateral | 1,080,000,000 | 1,240,000,000 | ||
Equity investments | $ 12,093,000 | |||
Equity investments without readily determinable fair value | 5,821,000 | |||
Securities available for sale, at estimated fair value | 1,538,755,000 | |||
Equity investments with other-than-temporary impairment | 0 | |||
Proceeds from sale of held-to-maturity securities | $ 0 | 0 | $ 0 | |
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2017-12 | ||||
Investment [Line Items] | ||||
Securities available for sale, at estimated fair value | $ 743,400,000 | |||
Unrealized net gain on securities transferred from held to maturity to available for sale under the transition guidance enumerated in ASU 2017-12 | 11,900,000 | |||
Unrealized net gain on securities transferred from held to maturity to available for sale, net of tax | $ 9,400,000 | |||
Other Equity Securities | ||||
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ||||
Securities available for sale, at estimated fair value | 5,920,000 | |||
Unrealized losses on equity investment included in AFS securities | $ 85,000 |
LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES - Narrative (Details) - USD ($) |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||||||
Loans to related parties | $ 4,000,000 | $ 5,500,000 | ||||
Related party loans as a percent of stockholders' equity | 0.60% | 0.70% | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Impaired loans without an allowance | $ 0 | $ 0 | ||||
Nonaccrual loans | [1],[2] | 35,770,000 | 2,937,000 | |||
Troubled Debt Restructurings (TDR) in Default | 216,000 | 138,000 | ||||
Commitments to lend additional funds on Troubled Debt Restructurings (TDR) | 0 | 0 | ||||
Minimum | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loan review larger dollar loan relationship scope, aggregate debt | 500,000 | |||||
Specifically reserved loans or loan relationships threshold | 150,000 | |||||
1-4 Family Residential Real Estate Loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Nonaccrual loans | 2,202,000 | 1,098,000 | ||||
Loans for which formal foreclosure proceedings were in process | 147,000 | 154,000 | ||||
Commercial Real Estate Loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans secured by owner and non-owner occupied commercial real estate | 1,130,000,000 | |||||
Loans secured by multi-family properties | 49,200,000 | |||||
Loans secured by farmland | 15,800,000 | |||||
Nonaccrual loans | $ 32,599,000 | $ 595,000 | ||||
|
LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES - Loans by Portfolio Segment (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
||
---|---|---|---|---|
Loans and Leases Receivable Disclosure [Abstract] | ||||
Total ending loan balance | $ 3,312,799 | $ 3,294,356 | ||
Less: Allowance for loan losses | [1] | 27,019 | 20,781 | |
Net loans | 3,285,780 | 3,273,575 | ||
Construction Real Estate Loans | ||||
Loans and Leases Receivable Disclosure [Abstract] | ||||
Total ending loan balance | 507,732 | 475,867 | ||
1-4 Family Residential Real Estate Loans | ||||
Loans and Leases Receivable Disclosure [Abstract] | ||||
Total ending loan balance | 794,499 | 805,341 | ||
Commercial Real Estate Loans | ||||
Loans and Leases Receivable Disclosure [Abstract] | ||||
Total ending loan balance | 1,194,118 | 1,265,159 | ||
Commercial Loans | ||||
Loans and Leases Receivable Disclosure [Abstract] | ||||
Total ending loan balance | 356,649 | 266,422 | ||
Municipal Loans | ||||
Loans and Leases Receivable Disclosure [Abstract] | ||||
Total ending loan balance | 353,370 | 345,798 | ||
Loans to Individuals | ||||
Loans and Leases Receivable Disclosure [Abstract] | ||||
Total ending loan balance | 106,431 | 135,769 | ||
Purchased Credit Impaired (PCI) Loans | ||||
Loans and Leases Receivable Disclosure [Abstract] | ||||
Less: Allowance for loan losses | $ 302 | $ 0 | ||
|
LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES - Allowance for Loan Losses Activity by Portfolio Segment (Details) |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018
USD ($)
|
Sep. 30, 2018
USD ($)
|
Jun. 30, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
Loan
|
|||||||||||||
Change in Allowances for Loan Losses [Abstract] | |||||||||||||||||||||||
Balance at beginning of period | $ 20,781,000 | [1] | $ 17,911,000 | $ 20,781,000 | [1] | $ 17,911,000 | $ 19,736,000 | ||||||||||||||||
Provision (reversal) for loan losses | $ 2,446,000 | $ 975,000 | $ 1,281,000 | 3,735,000 | $ 1,271,000 | $ 960,000 | $ 1,346,000 | 1,098,000 | 8,437,000 | [2] | 4,675,000 | [2] | 9,780,000 | [2] | |||||||||
Loans charged off | (4,246,000) | (3,453,000) | (14,387,000) | ||||||||||||||||||||
Recoveries of loans charged off | 2,047,000 | 1,648,000 | 2,782,000 | ||||||||||||||||||||
Balance at end of period | 27,019,000 | 20,781,000 | [1] | 27,019,000 | 20,781,000 | [1] | 17,911,000 | ||||||||||||||||
Provision expense on PCI Loans | 302,000 | 0 | 0 | ||||||||||||||||||||
Construction Real Estate Loans | |||||||||||||||||||||||
Change in Allowances for Loan Losses [Abstract] | |||||||||||||||||||||||
Balance at beginning of period | 3,676,000 | [1] | 4,147,000 | 3,676,000 | [1] | 4,147,000 | 4,350,000 | ||||||||||||||||
Provision (reversal) for loan losses | (72,000) | (437,000) | (472,000) | ||||||||||||||||||||
Loans charged off | (14,000) | (35,000) | 0 | ||||||||||||||||||||
Recoveries of loans charged off | 7,000 | 1,000 | 269,000 | ||||||||||||||||||||
Balance at end of period | 3,597,000 | 3,676,000 | [1] | 3,597,000 | 3,676,000 | [1] | 4,147,000 | ||||||||||||||||
1-4 Family Residential Real Estate Loans | |||||||||||||||||||||||
Change in Allowances for Loan Losses [Abstract] | |||||||||||||||||||||||
Balance at beginning of period | 2,445,000 | [1] | 2,665,000 | 2,445,000 | [1] | 2,665,000 | 2,595,000 | ||||||||||||||||
Provision (reversal) for loan losses | 1,134,000 | 65,000 | (28,000) | ||||||||||||||||||||
Loans charged off | (91,000) | (304,000) | (43,000) | ||||||||||||||||||||
Recoveries of loans charged off | 356,000 | 19,000 | 141,000 | ||||||||||||||||||||
Balance at end of period | 3,844,000 | 2,445,000 | [1] | 3,844,000 | 2,445,000 | [1] | 2,665,000 | ||||||||||||||||
Commercial Real Estate Loans | |||||||||||||||||||||||
Change in Allowances for Loan Losses [Abstract] | |||||||||||||||||||||||
Balance at beginning of period | 10,821,000 | [1] | 7,204,000 | 10,821,000 | [1] | 7,204,000 | 4,577,000 | ||||||||||||||||
Provision (reversal) for loan losses | 3,894,000 | 3,604,000 | 2,604,000 | ||||||||||||||||||||
Loans charged off | (783,000) | 0 | 0 | ||||||||||||||||||||
Recoveries of loans charged off | 36,000 | 13,000 | 23,000 | ||||||||||||||||||||
Balance at end of period | 13,968,000 | 10,821,000 | [1] | 13,968,000 | 10,821,000 | [1] | 7,204,000 | ||||||||||||||||
Commercial Loans | |||||||||||||||||||||||
Change in Allowances for Loan Losses [Abstract] | |||||||||||||||||||||||
Balance at beginning of period | 2,094,000 | [1] | 2,263,000 | 2,094,000 | [1] | 2,263,000 | 6,596,000 | ||||||||||||||||
Provision (reversal) for loan losses | 2,392,000 | 242,000 | 6,397,000 | ||||||||||||||||||||
Loans charged off | (756,000) | (723,000) | (11,396,000) | [3] | |||||||||||||||||||
Recoveries of loans charged off | 244,000 | 312,000 | 666,000 | ||||||||||||||||||||
Balance at end of period | 3,974,000 | 2,094,000 | [1] | 3,974,000 | 2,094,000 | [1] | 2,263,000 | ||||||||||||||||
Charge-off of large commercial borrowing relationships | [3] | $ 10,900,000 | |||||||||||||||||||||
Number of loans partially charged-off | Loan | [3] | 2 | |||||||||||||||||||||
Municipal Loans | |||||||||||||||||||||||
Change in Allowances for Loan Losses [Abstract] | |||||||||||||||||||||||
Balance at beginning of period | 860,000 | [1] | 750,000 | 860,000 | [1] | 750,000 | $ 725,000 | ||||||||||||||||
Provision (reversal) for loan losses | (335,000) | 110,000 | (224,000) | ||||||||||||||||||||
Loans charged off | 0 | 0 | 0 | ||||||||||||||||||||
Recoveries of loans charged off | 0 | 0 | 249,000 | ||||||||||||||||||||
Balance at end of period | 525,000 | 860,000 | [1] | 525,000 | 860,000 | [1] | 750,000 | ||||||||||||||||
Loans to Individuals | |||||||||||||||||||||||
Change in Allowances for Loan Losses [Abstract] | |||||||||||||||||||||||
Balance at beginning of period | $ 885,000 | [1] | $ 882,000 | 885,000 | [1] | 882,000 | 893,000 | ||||||||||||||||
Provision (reversal) for loan losses | 1,424,000 | 1,091,000 | 1,503,000 | ||||||||||||||||||||
Loans charged off | (2,602,000) | (2,391,000) | (2,948,000) | ||||||||||||||||||||
Recoveries of loans charged off | 1,404,000 | 1,303,000 | 1,434,000 | ||||||||||||||||||||
Balance at end of period | $ 1,111,000 | $ 885,000 | [1] | $ 1,111,000 | $ 885,000 | [1] | $ 882,000 | ||||||||||||||||
|
LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES - Allowance Balance, by Impairment Method, Reserve (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Schedule of Allowance For Loan Losses, Allowance Balance, by Impairment Method [Line Items] | ||||||||||||
Ending balance - individually evaluated for impairment | [1] | $ 5,908 | $ 353 | |||||||||
Ending balance - collectively evaluated for impairment | 21,111 | 20,428 | ||||||||||
Balance at end of period | 27,019 | 20,781 | [2] | $ 17,911 | $ 19,736 | |||||||
Loans and Leases Receivable, Allowance | [3] | 27,019 | 20,781 | |||||||||
Construction Real Estate Loans | ||||||||||||
Schedule of Allowance For Loan Losses, Allowance Balance, by Impairment Method [Line Items] | ||||||||||||
Ending balance - individually evaluated for impairment | 13 | 12 | ||||||||||
Ending balance - collectively evaluated for impairment | 3,584 | 3,664 | ||||||||||
Balance at end of period | 3,597 | 3,676 | [2] | 4,147 | 4,350 | |||||||
1-4 Family Residential Real Estate Loans | ||||||||||||
Schedule of Allowance For Loan Losses, Allowance Balance, by Impairment Method [Line Items] | ||||||||||||
Ending balance - individually evaluated for impairment | 40 | 14 | ||||||||||
Ending balance - collectively evaluated for impairment | 3,804 | 2,431 | ||||||||||
Balance at end of period | 3,844 | 2,445 | [2] | 2,665 | 2,595 | |||||||
Commercial Real Estate Loans | ||||||||||||
Schedule of Allowance For Loan Losses, Allowance Balance, by Impairment Method [Line Items] | ||||||||||||
Ending balance - individually evaluated for impairment | 5,337 | 14 | ||||||||||
Ending balance - collectively evaluated for impairment | 8,631 | 10,807 | ||||||||||
Balance at end of period | 13,968 | 10,821 | [2] | 7,204 | 4,577 | |||||||
Commercial Loans | ||||||||||||
Schedule of Allowance For Loan Losses, Allowance Balance, by Impairment Method [Line Items] | ||||||||||||
Ending balance - individually evaluated for impairment | 368 | 252 | ||||||||||
Ending balance - collectively evaluated for impairment | 3,606 | 1,842 | ||||||||||
Balance at end of period | 3,974 | 2,094 | [2] | 2,263 | 6,596 | |||||||
Municipal Loans | ||||||||||||
Schedule of Allowance For Loan Losses, Allowance Balance, by Impairment Method [Line Items] | ||||||||||||
Ending balance - individually evaluated for impairment | 1 | 10 | ||||||||||
Ending balance - collectively evaluated for impairment | 524 | 850 | ||||||||||
Balance at end of period | 525 | 860 | [2] | 750 | 725 | |||||||
Loans to Individuals | ||||||||||||
Schedule of Allowance For Loan Losses, Allowance Balance, by Impairment Method [Line Items] | ||||||||||||
Ending balance - individually evaluated for impairment | 149 | 51 | ||||||||||
Ending balance - collectively evaluated for impairment | 962 | 834 | ||||||||||
Balance at end of period | 1,111 | 885 | [2] | $ 882 | $ 893 | |||||||
Financial Asset Acquired with Credit Deterioration [Member] | ||||||||||||
Schedule of Allowance For Loan Losses, Allowance Balance, by Impairment Method [Line Items] | ||||||||||||
Loans and Leases Receivable, Allowance | $ 302 | $ 0 | ||||||||||
|
LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES - Allowance for Loan Losses, Loan Portfolio, by Impairment Method (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
|||||
---|---|---|---|---|---|---|---|
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||||||
Loans individually evaluated for impairment | $ 36,247 | $ 4,698 | |||||
Loans collectively evaluated for impairment | 3,230,150 | 3,244,425 | |||||
Purchased credit impaired loans | 46,402 | [1],[2] | 45,233 | ||||
Total ending loan balance | 3,312,799 | 3,294,356 | |||||
Construction Real Estate Loans | |||||||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||||||
Loans individually evaluated for impairment | 12 | 86 | |||||
Loans collectively evaluated for impairment | 507,564 | 475,505 | |||||
Purchased credit impaired loans | 156 | 276 | |||||
Total ending loan balance | 507,732 | 475,867 | |||||
1-4 Family Residential Real Estate Loans | |||||||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||||||
Loans individually evaluated for impairment | 1,215 | 1,581 | |||||
Loans collectively evaluated for impairment | 782,614 | 797,111 | |||||
Purchased credit impaired loans | 10,670 | 6,649 | |||||
Total ending loan balance | 794,499 | 805,341 | |||||
Commercial Real Estate Loans | |||||||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||||||
Loans individually evaluated for impairment | 33,013 | 895 | |||||
Loans collectively evaluated for impairment | 1,128,220 | 1,232,327 | |||||
Purchased credit impaired loans | 32,885 | 31,937 | |||||
Total ending loan balance | 1,194,118 | 1,265,159 | |||||
Commercial Loans | |||||||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||||||
Loans individually evaluated for impairment | 1,394 | 1,429 | |||||
Loans collectively evaluated for impairment | 353,036 | 259,745 | |||||
Purchased credit impaired loans | 2,219 | 5,248 | |||||
Total ending loan balance | 356,649 | 266,422 | |||||
Municipal Loans | |||||||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||||||
Loans individually evaluated for impairment | 429 | 502 | |||||
Loans collectively evaluated for impairment | 352,941 | 345,296 | |||||
Purchased credit impaired loans | 0 | 0 | |||||
Total ending loan balance | 353,370 | 345,798 | |||||
Loans to Individuals | |||||||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||||||
Loans individually evaluated for impairment | 184 | 205 | |||||
Loans collectively evaluated for impairment | 105,775 | 134,441 | |||||
Purchased credit impaired loans | 472 | 1,123 | |||||
Total ending loan balance | 106,431 | 135,769 | |||||
Pass | |||||||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||||||
Total ending loan balance | 3,171,320 | 3,131,151 | |||||
Purchased credit impaired loans, new funds to borrower | 14,000 | ||||||
Pass | Construction Real Estate Loans | |||||||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||||||
Total ending loan balance | 507,529 | 471,446 | |||||
Pass | 1-4 Family Residential Real Estate Loans | |||||||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||||||
Total ending loan balance | 787,516 | 796,639 | |||||
Pass | Commercial Real Estate Loans | |||||||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||||||
Total ending loan balance | 1,067,874 | 1,136,576 | |||||
Pass | Commercial Loans | |||||||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||||||
Total ending loan balance | 349,495 | 247,430 | |||||
Pass | Municipal Loans | |||||||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||||||
Total ending loan balance | 353,370 | 344,366 | |||||
Pass | Loans to Individuals | |||||||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||||||
Total ending loan balance | $ 105,536 | $ 134,694 | |||||
|
LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES - Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
||||||||
---|---|---|---|---|---|---|---|---|---|---|
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | $ 3,312,799 | $ 3,294,356 | ||||||||
PCI loans | 46,402 | [1],[2] | 45,233 | |||||||
Pass | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | 3,171,320 | 3,131,151 | ||||||||
Pass Watch | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 12,203 | 39,808 | |||||||
PCI loans | 22 | 362 | ||||||||
Special Mention | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 29,783 | 31,223 | |||||||
PCI loans | 859 | 6,000 | ||||||||
Substandard | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 96,950 | 90,629 | |||||||
PCI loans | 3,900 | 10,500 | ||||||||
Doubtful | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 2,543 | 1,545 | |||||||
PCI loans | 1,200 | 925 | ||||||||
Construction Real Estate Loans | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | 507,732 | 475,867 | ||||||||
PCI loans | 156 | 276 | ||||||||
Construction Real Estate Loans | Pass | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | 507,529 | 471,446 | ||||||||
Construction Real Estate Loans | Pass Watch | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 163 | 3,329 | |||||||
Construction Real Estate Loans | Special Mention | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 0 | 77 | |||||||
Construction Real Estate Loans | Substandard | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 28 | 982 | |||||||
Construction Real Estate Loans | Doubtful | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 12 | 33 | |||||||
1-4 Family Residential Real Estate Loans | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | 794,499 | 805,341 | ||||||||
PCI loans | 10,670 | 6,649 | ||||||||
1-4 Family Residential Real Estate Loans | Pass | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | 787,516 | 796,639 | ||||||||
1-4 Family Residential Real Estate Loans | Pass Watch | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 37 | 559 | |||||||
1-4 Family Residential Real Estate Loans | Special Mention | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 100 | 857 | |||||||
1-4 Family Residential Real Estate Loans | Substandard | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 5,489 | 6,610 | |||||||
1-4 Family Residential Real Estate Loans | Doubtful | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 1,357 | 676 | |||||||
Commercial Real Estate Loans | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | 1,194,118 | 1,265,159 | ||||||||
PCI loans | 32,885 | 31,937 | ||||||||
Commercial Real Estate Loans | Pass | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | 1,067,874 | 1,136,576 | ||||||||
Commercial Real Estate Loans | Pass Watch | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 11,479 | 26,275 | |||||||
Commercial Real Estate Loans | Special Mention | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 26,490 | 25,301 | |||||||
Commercial Real Estate Loans | Substandard | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 87,767 | 76,625 | |||||||
Commercial Real Estate Loans | Doubtful | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 508 | 382 | |||||||
Commercial Loans | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | 356,649 | 266,422 | ||||||||
PCI loans | 2,219 | 5,248 | ||||||||
Commercial Loans | Pass | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | 349,495 | 247,430 | ||||||||
Commercial Loans | Pass Watch | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 520 | 9,625 | |||||||
Commercial Loans | Special Mention | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 3,189 | 3,956 | |||||||
Commercial Loans | Substandard | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 2,988 | 5,203 | |||||||
Commercial Loans | Doubtful | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 457 | 208 | |||||||
Municipal Loans | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | 353,370 | 345,798 | ||||||||
PCI loans | 0 | 0 | ||||||||
Municipal Loans | Pass | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | 353,370 | 344,366 | ||||||||
Municipal Loans | Pass Watch | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 0 | 0 | |||||||
Municipal Loans | Special Mention | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 0 | 930 | |||||||
Municipal Loans | Substandard | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 0 | 502 | |||||||
Municipal Loans | Doubtful | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 0 | 0 | |||||||
Loans to Individuals | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | 106,431 | 135,769 | ||||||||
PCI loans | 472 | 1,123 | ||||||||
Loans to Individuals | Pass | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | 105,536 | 134,694 | ||||||||
Loans to Individuals | Pass Watch | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 4 | 20 | |||||||
Loans to Individuals | Special Mention | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 4 | 102 | |||||||
Loans to Individuals | Substandard | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | 678 | 707 | |||||||
Loans to Individuals | Doubtful | ||||||||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||||||||
Total ending loan balance | [3] | $ 209 | $ 246 | |||||||
|
LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES - Nonperforming Assets by Asset Class (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
||||||||
Nonperforming Assets by Asset Class [Abstract] | ||||||||||
Nonaccrual loans | [1],[2] | $ 35,770 | $ 35,770 | $ 2,937 | ||||||
Accruing loans past due more than 90 days | [1] | 0 | 0 | 1 | ||||||
Restructured loans | [3] | 5,930 | 5,930 | 5,767 | ||||||
Other real estate owned | 1,206 | 1,206 | 1,613 | |||||||
Repossessed assets | 0 | 0 | 154 | |||||||
Total Nonperforming Assets | $ 42,906 | $ 42,906 | 10,472 | |||||||
Number of commercial real estate loans added to nonaccrual | 1 | 4 | ||||||||
Restructured nonaccrual loans | $ 10,900 | $ 10,900 | 1,300 | |||||||
PCI loans restructured | $ 3,100 | $ 3,100 | $ 2,900 | |||||||
|
LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES - Nonaccrual Loans by Class (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
||||
---|---|---|---|---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Nonaccrual loans | [1],[2] | $ 35,770 | $ 2,937 | |||
Construction Real Estate Loans | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Nonaccrual loans | 12 | 86 | ||||
1-4 Family Residential Real Estate Loans | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Nonaccrual loans | 2,202 | 1,098 | ||||
Commercial Real Estate Loans | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Nonaccrual loans | 32,599 | 595 | ||||
Commercial Loans | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Nonaccrual loans | 639 | 903 | ||||
Loans to Individuals | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Nonaccrual loans | $ 318 | $ 255 | ||||
|
LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES - Impaired Loans by Class of Loan (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Unpaid Contractual Principal Balance | [1] | $ 47,274 | $ 7,989 | ||
Recorded Investment | [1] | 44,267 | 7,549 | ||
Related Allowance for Loan Losses | [1] | 5,908 | 353 | ||
PCI loans that experienced deterioration in credit quality subsequent to acquisition | 8,000 | 2,900 | |||
Construction Real Estate Loans | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Unpaid Contractual Principal Balance | 182 | 91 | |||
Recorded Investment | 148 | 86 | |||
Related Allowance for Loan Losses | 13 | 12 | |||
1-4 Family Residential Real Estate Loans | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Unpaid Contractual Principal Balance | 6,507 | 4,141 | |||
Recorded Investment | 5,923 | 3,952 | |||
Related Allowance for Loan Losses | 40 | 14 | |||
Commercial Real Estate Loans | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Unpaid Contractual Principal Balance | 36,457 | 1,353 | |||
Recorded Investment | 34,744 | 1,199 | |||
Related Allowance for Loan Losses | 5,337 | 14 | |||
Commercial Loans | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Unpaid Contractual Principal Balance | 2,874 | 1,665 | |||
Recorded Investment | 2,366 | 1,605 | |||
Related Allowance for Loan Losses | 368 | 252 | |||
Municipal Loans | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Unpaid Contractual Principal Balance | 429 | 502 | |||
Recorded Investment | 429 | 502 | |||
Related Allowance for Loan Losses | 1 | 10 | |||
Loans to Individuals | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Unpaid Contractual Principal Balance | 825 | 237 | |||
Recorded Investment | 657 | 205 | |||
Related Allowance for Loan Losses | $ 149 | $ 51 | |||
|
LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES - Aging of Past Due Loans By Class of Loan (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | $ 34,314 | $ 19,039 | |||
Current | [1] | 3,278,485 | 3,275,317 | ||
Total ending loans balance | 3,312,799 | 3,294,356 | |||
30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 21,966 | 13,777 | |||
60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 10,276 | 3,901 | |||
Greater than 90 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 2,072 | 1,361 | |||
Construction Real Estate Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 934 | 2,900 | |||
Current | [1] | 506,798 | 472,967 | ||
Total ending loans balance | 507,732 | 475,867 | |||
Construction Real Estate Loans | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 627 | 1,302 | |||
Construction Real Estate Loans | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 307 | 1,530 | |||
Construction Real Estate Loans | Greater than 90 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 0 | 68 | |||
1-4 Family Residential Real Estate Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 10,034 | 10,944 | |||
Current | [1] | 784,465 | 794,397 | ||
Total ending loans balance | 794,499 | 805,341 | |||
1-4 Family Residential Real Estate Loans | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 7,441 | 8,508 | |||
1-4 Family Residential Real Estate Loans | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 1,258 | 1,574 | |||
1-4 Family Residential Real Estate Loans | Greater than 90 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 1,335 | 862 | |||
Commercial Real Estate Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 18,318 | 1,386 | |||
Current | [1] | 1,175,800 | 1,263,773 | ||
Total ending loans balance | 1,194,118 | 1,265,159 | |||
Commercial Real Estate Loans | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 10,663 | 1,357 | |||
Commercial Real Estate Loans | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 7,655 | 24 | |||
Commercial Real Estate Loans | Greater than 90 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 0 | 5 | |||
Commercial Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 3,242 | 1,395 | |||
Current | [1] | 353,407 | 265,027 | ||
Total ending loans balance | 356,649 | 266,422 | |||
Commercial Loans | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 1,946 | 662 | |||
Commercial Loans | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 705 | 400 | |||
Commercial Loans | Greater than 90 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 591 | 333 | |||
Municipal Loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 0 | 422 | |||
Current | [1] | 353,370 | 345,376 | ||
Total ending loans balance | 353,370 | 345,798 | |||
Municipal Loans | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 0 | 422 | |||
Municipal Loans | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
Municipal Loans | Greater than 90 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 0 | 0 | |||
Loans to Individuals | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 1,786 | 1,992 | |||
Current | [1] | 104,645 | 133,777 | ||
Total ending loans balance | 106,431 | 135,769 | |||
Loans to Individuals | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 1,289 | 1,526 | |||
Loans to Individuals | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | 351 | 373 | |||
Loans to Individuals | Greater than 90 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Total Past Due | $ 146 | $ 93 | |||
|
LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES - Interest Income on Impaired Loans (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Impaired Financing Receivable, Average Recorded Investment and Interest [Abstract] | |||
Average Recorded Investment | $ 33,383 | $ 9,504 | $ 22,597 |
Interest Income Recognized | 417 | 325 | 344 |
Construction Real Estate Loans | |||
Impaired Financing Receivable, Average Recorded Investment and Interest [Abstract] | |||
Average Recorded Investment | 149 | 251 | 510 |
Interest Income Recognized | 7 | 0 | 22 |
1-4 Family Residential Real Estate Loans | |||
Impaired Financing Receivable, Average Recorded Investment and Interest [Abstract] | |||
Average Recorded Investment | 4,193 | 4,264 | 3,247 |
Interest Income Recognized | 208 | 197 | 169 |
Commercial Real Estate Loans | |||
Impaired Financing Receivable, Average Recorded Investment and Interest [Abstract] | |||
Average Recorded Investment | 26,186 | 1,338 | 4,490 |
Interest Income Recognized | 65 | 30 | 63 |
Commercial Loans | |||
Impaired Financing Receivable, Average Recorded Investment and Interest [Abstract] | |||
Average Recorded Investment | 2,131 | 2,862 | 13,481 |
Interest Income Recognized | 102 | 59 | 48 |
Municipal Loans | |||
Impaired Financing Receivable, Average Recorded Investment and Interest [Abstract] | |||
Average Recorded Investment | 474 | 545 | 612 |
Interest Income Recognized | 26 | 30 | 33 |
Loans to Individuals | |||
Impaired Financing Receivable, Average Recorded Investment and Interest [Abstract] | |||
Average Recorded Investment | 250 | 244 | 257 |
Interest Income Recognized | $ 9 | $ 9 | $ 9 |
LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES - Troubled Debt Restructurings (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018
USD ($)
contract
|
Dec. 31, 2017
USD ($)
contract
|
|
Troubled Debt Restructuring [Abstract] | ||
Extend Amortization Period | $ 10,617 | $ 801 |
Interest Rate Reductions | 112 | 0 |
Combination | 540 | 293 |
Total Modifications | $ 11,269 | $ 1,094 |
Number of Contracts | contract | 22 | 10 |
1-4 Family Residential Real Estate Loans | ||
Troubled Debt Restructuring [Abstract] | ||
Extend Amortization Period | $ 0 | |
Interest Rate Reductions | 79 | |
Combination | 0 | |
Total Modifications | $ 79 | |
Number of Contracts | contract | 1 | |
Commercial Real Estate Loans | ||
Troubled Debt Restructuring [Abstract] | ||
Extend Amortization Period | $ 10,398 | |
Interest Rate Reductions | 0 | |
Combination | 274 | |
Total Modifications | $ 10,672 | |
Number of Contracts | contract | 3 | |
Commercial Loans | ||
Troubled Debt Restructuring [Abstract] | ||
Extend Amortization Period | $ 211 | $ 778 |
Interest Rate Reductions | 0 | 0 |
Combination | 215 | 241 |
Total Modifications | $ 426 | $ 1,019 |
Number of Contracts | contract | 13 | 4 |
Loans to Individuals | ||
Troubled Debt Restructuring [Abstract] | ||
Extend Amortization Period | $ 8 | $ 23 |
Interest Rate Reductions | 33 | 0 |
Combination | 51 | 52 |
Total Modifications | $ 92 | $ 75 |
Number of Contracts | contract | 5 | 6 |
LOANS AND ALLOWANCE FOR PROBABLE LOAN LOSSES - Purchased Credit Impaired (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
||||||
Purchased Credit Impaired [Abstract] | |||||||
Outstanding principal balance | $ 51,388 | [1] | $ 52,426 | ||||
Carrying amount | 46,402 | [1],[2] | 45,233 | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||||||
Balance at beginning of period | 18,721 | 2,480 | |||||
Additions due to acquisition | 0 | 15,389 | |||||
Changes in expected cash flows not affecting non-accretable differences | (1,445) | 0 | |||||
Reclassifications (to) from nonaccretable discount | 1,211 | 1,720 | |||||
Accretion | (3,433) | (868) | |||||
Balance at end of period | 15,054 | $ 18,721 | |||||
Pass | |||||||
Purchased Credit Impaired [Abstract] | |||||||
Purchased credit impaired loans, new funds to borrower | $ 14,000 | ||||||
|
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Property, Plant and Equipment [Abstract] | |||
Premises | $ 166,128 | $ 158,817 | |
Furniture and equipment | 41,810 | 40,565 | |
Premises and equipment, gross | 207,938 | 199,382 | |
Less: accumulated depreciation | 71,966 | 65,742 | |
Premises and equipment, net | 135,972 | 133,640 | |
Depreciation [Abstract] | |||
Accumulated depreciation of assets written off | 2,200 | 915 | |
Depreciation expense | $ 8,400 | $ 8,100 | $ 8,000 |
DEPOSITS - Types and Components of Deposit Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Noninterest bearing demand deposits: | ||
Noninterest bearing demand deposits | $ 994,680 | $ 1,037,401 |
Interest bearing deposits: | ||
Total interest bearing deposits | 3,430,350 | 3,478,046 |
Total deposits | 4,425,030 | 4,515,447 |
Private accounts | ||
Noninterest bearing demand deposits: | ||
Noninterest bearing demand deposits | 967,096 | 995,685 |
Interest bearing deposits: | ||
Savings deposits | 360,007 | 356,857 |
Money market demand deposits | 440,442 | 443,015 |
Platinum money market deposits | 344,546 | 308,105 |
Interest bearing checking | 662,911 | 686,816 |
NOW demand deposits | 23,451 | 20,142 |
Certificates and other time deposits, $250,000 or more | 84,564 | 87,195 |
Certificates and other time deposits under $250,000 | 680,282 | 534,220 |
Total interest bearing deposits | 2,596,203 | 2,436,350 |
Public accounts | ||
Noninterest bearing demand deposits: | ||
Noninterest bearing demand deposits | 27,584 | 41,716 |
Interest bearing deposits: | ||
Savings deposits | 320 | 304 |
Money market demand deposits | 15,513 | 19,560 |
Platinum money market deposits | 329,695 | 360,006 |
Interest bearing checking | 56,694 | 55,902 |
NOW demand deposits | 141,200 | 114,401 |
Certificates and other time deposits, $250,000 or more | 281,204 | 462,941 |
Certificates and other time deposits under $250,000 | 9,521 | 28,582 |
Total interest bearing deposits | $ 834,147 | $ 1,041,696 |
DEPOSITS - Scheduled Maturities of Time Deposits (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Time Deposits, Fiscal Year Maturity [Abstract] | |
2019 | $ 845,661 |
2020 | 116,542 |
2021 | 42,254 |
2022 | 20,003 |
2023 | 25,931 |
2024 and thereafter | 5,180 |
Total | $ 1,055,571 |
DEPOSITS - Narrative (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Deposit Liabilities Disclosures [Line Items] | |||
Time deposits threshold | $ 250,000 | ||
Interest expense on time deposits of $250,000 or more | 8,500,000 | $ 5,000,000 | $ 3,200,000 |
Maximum brokered certificates of deposit balance allowed per company policy | 300,000,000 | ||
Related party deposit liabilities | 16,200,000 | 31,700,000 | |
Demand deposit overdrafts reclassified as loans | 1,600,000 | 1,300,000 | |
Certificates of deposit - CDs | |||
Deposit Liabilities Disclosures [Line Items] | |||
Brokered certificates of deposit | $ 238,100,000 | $ 60,200,000 | |
Brokered certificates of deposit, as a percent of total deposits | 5.40% | ||
Weighted average cost, domestic deposit, brokered | 2.23% | ||
Brokered certificates of deposit, maturity period | 1 year | ||
Category under which brokered certificates of deposit are reported | $ 250,000 |
BORROWING ARRANGEMENTS (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
||||||||||
Debt Instrument [Line Items] | |||||||||||
Federal funds purchased and repurchase agreements | $ 36,810 | $ 9,498 | |||||||||
FHLB borrowings | 719,065 | 1,017,361 | |||||||||
Federal funds purchased and repurchase agreements: | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Federal funds purchased and repurchase agreements | 36,810 | 9,498 | |||||||||
Average amount outstanding during the period | [1] | 10,880 | 8,120 | ||||||||
Maximum amount outstanding during the period | [2] | $ 36,810 | $ 9,498 | ||||||||
Weighted average interest rate during the period | [3] | 1.40% | 0.20% | ||||||||
Interest rate at end of period | [4] | 2.10% | 0.20% | ||||||||
FHLB borrowings: | |||||||||||
Debt Instrument [Line Items] | |||||||||||
FHLB borrowings | $ 719,065 | $ 1,017,361 | |||||||||
Average amount outstanding during the period | [1] | 720,785 | 1,222,033 | ||||||||
Maximum amount outstanding during the period | [2] | $ 957,231 | $ 1,414,453 | ||||||||
Weighted average interest rate during the period | [3] | 1.80% | 1.20% | ||||||||
Interest rate at end of period | [4] | 2.30% | 1.40% | ||||||||
|
BORROWING ARRANGEMENTS - Maturities Table (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Less than 1 Year | $ 373,188 |
1-2 Years | 365,289 |
2-3 Years | 11,483 |
3-4 Years | 0 |
4-5 Years | 0 |
Thereafter | 5,915 |
Total | 755,875 |
Federal funds purchased and repurchase agreements: | |
Debt Instrument [Line Items] | |
Less than 1 Year | 36,686 |
1-2 Years | 124 |
2-3 Years | 0 |
3-4 Years | 0 |
4-5 Years | 0 |
Thereafter | 0 |
Total | 36,810 |
FHLB borrowings: | |
Debt Instrument [Line Items] | |
Less than 1 Year | 336,502 |
1-2 Years | 365,165 |
2-3 Years | 11,483 |
3-4 Years | 0 |
4-5 Years | 0 |
Thereafter | 5,915 |
Total | $ 719,065 |
BORROWING ARRANGEMENTS - Additional Information (Details) |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2017
USD ($)
contract
|
Dec. 31, 2018
USD ($)
credit_line
agreement
Oustanding_Letters_of_Credit
Rate
|
Dec. 31, 2017
USD ($)
|
|
Line of Credit Facility [Line Items] | |||
Debt face amount | $ 270,000,000 | ||
Number of credit lines maintained by the Company | credit_line | 3 | ||
Federal funds purchased | $ 28,000,000 | $ 0 | |
Number of outstanding letters of credit | Oustanding_Letters_of_Credit | 1 | ||
Letters of credit outstanding | $ 195,000 | ||
FHLB Advances, unused funds | 1,170,000,000 | ||
Letters of credit, FHLB, as collateral | 0 | ||
Securities sold under agreements to repurchase | $ 8,800,000 | 9,500,000 | |
Maturity of repurchase agreements | 2 years | ||
Frost Bank | |||
Line of Credit Facility [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 40,000,000 | ||
Line of credit facility, capacity available for issuance of letters of credit | 5,000,000 | ||
TIB - The Independent Bankers Bank | |||
Line of Credit Facility [Line Items] | |||
Line of credit, maximum borrowing capacity | 15,000,000 | ||
Comerica Bank | |||
Line of Credit Facility [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 7,500,000 | ||
Minimum | |||
Line of Credit Facility [Line Items] | |||
Federal home loan bank, advances, general debt obligations, disclosures, interest rate at period end | 1.37% | ||
Maximum | |||
Line of Credit Facility [Line Items] | |||
Federal home loan bank, advances, general debt obligations, disclosures, interest rate at period end | 4.799% | ||
Maturity range of FHLB advances | 9 years 6 months 3 days | ||
Variable Rate Advance Agreements | |||
Line of Credit Facility [Line Items] | |||
Debt face amount | $ 310,000,000 | $ 280,000,000 | |
Three-Month London Interbank Offered Rate (LIBOR) | Variable Rate Advance Agreements | |||
Line of Credit Facility [Line Items] | |||
Description of variable rate basis | three-month LIBOR | ||
Three-Month London Interbank Offered Rate (LIBOR) | Variable Rate Advance Agreements | Minimum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | Rate | (0.003%) | ||
Three-Month London Interbank Offered Rate (LIBOR) | Variable Rate Advance Agreements | Maximum | |||
Line of Credit Facility [Line Items] | |||
Number of variable rate advance agreements | agreement | 2 | ||
Basis spread on variable rate | Rate | 0.021% | ||
One-Month London Interbank Offered Rate (LIBOR) | Variable Rate Advance Agreements | |||
Line of Credit Facility [Line Items] | |||
Description of variable rate basis | one-month LIBOR | ||
One-Month London Interbank Offered Rate (LIBOR) | Variable Rate Advance Agreements | Minimum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | Rate | 0.072% | ||
One-Month London Interbank Offered Rate (LIBOR) | Variable Rate Advance Agreements | Maximum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | Rate | 0.164% | ||
Interest Rate Swaps | |||
Line of Credit Facility [Line Items] | |||
Derivative, instruments terminated | contract | 2 | ||
Derivative, terminated, notional amount | $ 40,000,000 | ||
Interest Rate Swaps | Minimum | |||
Line of Credit Facility [Line Items] | |||
Derivative, fixed interest rate | 0.932% | ||
Derivative, term of contract | 4 years | ||
Interest Rate Swaps | Maximum | |||
Line of Credit Facility [Line Items] | |||
Derivative, fixed interest rate | 2.833% | ||
Derivative, term of contract | 10 years |
LONG-TERM DEBT - Other Long-term Obligations (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Oct. 10, 2007 |
[5] | Aug. 10, 2007 |
Aug. 08, 2007 |
||||||||||||||
Debt Instruments [Abstract] | |||||||||||||||||||
Subordinated notes, net of unamortized debt issuance costs | [1] | $ 98,407 | $ 98,248 | ||||||||||||||||
Trust preferred subordinated debentures | [2] | 60,246 | 60,241 | ||||||||||||||||
Total long-term obligations | 158,653 | 158,489 | |||||||||||||||||
5.50% Subordinated Notes | |||||||||||||||||||
Debt Instruments [Abstract] | |||||||||||||||||||
Subordinated notes, net of unamortized debt issuance costs | [1],[3] | 98,407 | 98,248 | ||||||||||||||||
Unamortized debt issuance expense | 1,600 | 1,800 | |||||||||||||||||
Southside Statutory Trust III, net of unamortized debt issuance costs | |||||||||||||||||||
Debt Instruments [Abstract] | |||||||||||||||||||
Trust preferred subordinated debentures | [2],[4] | 20,554 | 20,549 | ||||||||||||||||
Unamortized debt issuance expense | 65 | 70 | |||||||||||||||||
Southside Statutory Trust IV | |||||||||||||||||||
Debt Instruments [Abstract] | |||||||||||||||||||
Trust preferred subordinated debentures | 23,196 | [2] | 23,196 | [2] | $ 23,196 | ||||||||||||||
Southside Statutory Trust V | |||||||||||||||||||
Debt Instruments [Abstract] | |||||||||||||||||||
Trust preferred subordinated debentures | 12,887 | [2] | 12,887 | [2] | $ 12,887 | ||||||||||||||
Magnolia Trust Company I | |||||||||||||||||||
Debt Instruments [Abstract] | |||||||||||||||||||
Trust preferred subordinated debentures | $ 3,609 | [2] | $ 3,609 | [2] | $ 3,609 | ||||||||||||||
Minimum | 5.50% Subordinated Notes | |||||||||||||||||||
Debt Instruments [Abstract] | |||||||||||||||||||
Long-term debt, remaining maturity | 1 year | ||||||||||||||||||
|
LONG-TERM DEBT - LT Debt Interest Rates (Details) - USD ($) $ in Thousands |
Sep. 29, 2021 |
Sep. 19, 2016 |
Oct. 10, 2007 |
Aug. 10, 2007 |
Aug. 08, 2007 |
Sep. 04, 2003 |
Dec. 31, 2018 |
Dec. 31, 2017 |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||||||||||||||
Other long-term debt | [1] | $ 60,246 | $ 60,241 | |||||||||||||||
5.50% Subordinated Notes | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Amount issued | $ 100,000 | |||||||||||||||||
Stated interest rate | 5.50% | |||||||||||||||||
Southside Statutory Trust III | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Amount issued | $ 20,619 | |||||||||||||||||
Other long-term debt | [1],[2] | 20,554 | 20,549 | |||||||||||||||
Southside Statutory Trust III | Three-Month London Interbank Offered Rate (LIBOR) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Basis spread on variable rate | 2.94% | |||||||||||||||||
Southside Statutory Trust IV | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Other long-term debt | $ 23,196 | 23,196 | [1] | 23,196 | [1] | |||||||||||||
Southside Statutory Trust IV | Three-Month London Interbank Offered Rate (LIBOR) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Basis spread on variable rate | 1.30% | |||||||||||||||||
Southside Statutory Trust V | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Other long-term debt | $ 12,887 | 12,887 | [1] | 12,887 | [1] | |||||||||||||
Southside Statutory Trust V | Three-Month London Interbank Offered Rate (LIBOR) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Basis spread on variable rate | 2.25% | |||||||||||||||||
Magnolia Trust Company I | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Other long-term debt | $ 3,609 | [3] | $ 3,609 | [1] | $ 3,609 | [1] | ||||||||||||
Magnolia Trust Company I | Three-Month London Interbank Offered Rate (LIBOR) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Basis spread on variable rate | [3] | 1.80% | ||||||||||||||||
Scenario, Forecast [Member] | 5.50% Subordinated Notes | Three-Month London Interbank Offered Rate (LIBOR) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Basis spread on variable rate | 4.297% | |||||||||||||||||
|
EMPLOYEE BENEFITS - Narrative (Details) |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2018
USD ($)
executive_officer
Rate
shares
|
Dec. 31, 2017
USD ($)
shares
|
Dec. 31, 2016
USD ($)
executive_officer
shares
|
Dec. 31, 2015 |
Dec. 31, 2013
executive_officer
|
|
Health Insurance Coverage [Abstract] | |||||
Cost of health care benefits | $ 6,500,000 | $ 5,600,000 | $ 4,900,000 | ||
Health coverage eligibility for retiring employees, minimum years of service | 50 years | ||||
Retirees participating in health insurance | 1 | 2 | 2 | ||
Employee Stock Ownership Plan (ESOP) [Abstract] | |||||
Contributions to the employee stock ownership plan (ESOP) | $ 700,000 | $ 350,000 | $ 350,000 | ||
Shares owned by the ESOP (in shares) | shares | 277,492 | 280,542 | |||
Supplemental Unemployment Benefits [Abstract] | |||||
Long-term disability coverage, minimum years of service rendered for officers to automatically qualify | 3 years | ||||
Long-term disability coverage, minimum annual salary level for officers to automatically qualify | $ 50,000 | ||||
Long-term disability coverage, maximum benefit provided, per month | $ 15,000 | ||||
Long-term disability coverage, maximum benefit provided, as a ratio of final salary | Rate | 66.66667% | ||||
401(k) [Abstract] | |||||
Requisite service period | 30 days | ||||
401(k) Plan expense | $ 1,500,000 | $ 613,000 | 562,000 | ||
Share-based Compensation [Abstract] | |||||
Tax benefit (expense) realized for deductions related to stock option exercises | 332,000 | ||||
Defined Benefit Pension Plan | |||||
Defined Benefit Plan [Abstract] | |||||
Defined benefit pension plan, minimum eligibility age | 65 years | ||||
Early retirement election at reduced benefit levels, minimum eligibility age | 55 years | ||||
Number of shares of Company stock included in plan assets (in shares) | shares | 240,666 | 240,666 | |||
Funded (under funded) status | $ (1,081,000) | $ (3,043,000) | $ (2,778,000) | ||
Number of employees offered early retirement | 24 | ||||
Total number of employees that accepted early retirement offer | 15 | 16 | |||
Special and contractual termination benefits | 0 | 0 | $ 1,549,000 | ||
Accrued benefit (liability) asset recognized | (1,081,000) | (3,043,000) | (2,778,000) | ||
Expected future employer contributions, next fiscal year | 0 | ||||
Defined Benefit Pension Plan Acquired | |||||
Defined Benefit Plan [Abstract] | |||||
Funded (under funded) status | 197,000 | (361,000) | (1,245,000) | ||
Special and contractual termination benefits | 0 | 0 | 0 | ||
Accrued benefit (liability) asset recognized | 197,000 | (361,000) | (1,245,000) | ||
Expected future employer contributions, next fiscal year | 0 | ||||
Restoration Plan | |||||
Defined Benefit Plan [Abstract] | |||||
Funded (under funded) status | (15,300,000) | (14,642,000) | (12,723,000) | ||
Special and contractual termination benefits | 0 | 0 | 0 | ||
Accrued benefit (liability) asset recognized | (15,300,000) | $ (14,642,000) | $ (12,723,000) | ||
Expected future employer contributions, next fiscal year | $ 0 | ||||
Other Equity Securities | Defined Benefit Pension Plan | |||||
Defined Benefit Plan [Abstract] | |||||
Target allocation | 55.00% | ||||
Fixed Income Securities | Defined Benefit Pension Plan | |||||
Defined Benefit Plan [Abstract] | |||||
Target allocation | 44.50% | ||||
Cash equivalents | Defined Benefit Pension Plan | |||||
Defined Benefit Plan [Abstract] | |||||
Target allocation | 0.50% | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation [Abstract] | |||||
Nonvested awards outstanding (in shares) | shares | 109,750 | 78,253 | |||
Incentive Plan 2009 | |||||
Share-based Compensation [Abstract] | |||||
Number of additional shares (in shares) | shares | 410,000 | ||||
Incentive Plan 2017 | |||||
Share-based Compensation [Abstract] | |||||
Common stock shares reserved and available for issuance (in shares) | shares | 2,460,000 | ||||
Shares remaining available for grant for future awards (in shares) | shares | 1,675,607 | ||||
Incentive Plan | |||||
Share-based Compensation [Abstract] | |||||
Nonvested awards outstanding (in shares) | shares | 612,740 | 366,292 | 599,498 | ||
Share-based compensation expense | $ 2,300,000 | $ 1,800,000 | $ 1,500,000 | ||
Tax benefit from share-based compensation expense | 487,000 | 635,000 | 539,000 | ||
Unrecognized compensation expense | $ 5,800,000 | 3,800,000 | 5,600,000 | ||
Unrecognized compensation, weighted-average period for recognition | 2 years 9 months 14 days | ||||
Incentive Plan | Stock options | |||||
Share-based Compensation [Abstract] | |||||
Awards contractual term | 10 years | ||||
Total intrinsic value of outstanding stock options | $ 3,700,000 | ||||
Total intrinsic value of exercisable stock options | $ 3,200,000 | ||||
Weighted-average remaining contractual life of options exercisable | 5 years 5 months 28 days | ||||
Total intrinsic value of stock options exercised during period | $ 1,400,000 | 1,800,000 | 1,300,000 | ||
Tax benefit (expense) realized for deductions related to stock option exercises | $ 0 | 0 | $ 332,000 | ||
Incentive Plan | Stock options | Minimum | |||||
Share-based Compensation [Abstract] | |||||
Awards vesting period | 3 years | ||||
Incentive Plan | Stock options | Maximum | |||||
Share-based Compensation [Abstract] | |||||
Awards vesting period | 4 years | ||||
Incentive Plan | Restricted Stock Units (RSUs) | Minimum | |||||
Share-based Compensation [Abstract] | |||||
Awards vesting period | 3 years | ||||
Incentive Plan | Restricted Stock Units (RSUs) | Maximum | |||||
Share-based Compensation [Abstract] | |||||
Awards vesting period | 4 years | ||||
Executive officers | |||||
Deferred Compensation Arrangements [Abstract] | |||||
Number of employees included in the deferred compensation agreement with the Company | executive_officer | 17 | ||||
Aggregate payment amount provided in the deferred compensation agreements | $ 6,900,000 | ||||
Maximum benefit period after retirement or death | 15 years | ||||
Number of individuals receiving payments | executive_officer | 9 | ||||
Number of individuals that accepted the retirement package | executive_officer | 3 | ||||
Deferred compensation expense | $ 201,000 | 353,000 | $ 357,000 | ||
Total deferred compensation plan liability | $ 3,400,000 | 3,500,000 | |||
Split Dollar Life Insurance Agreements [Abstract] | |||||
Number of employees originally covered by the split dollar agreements | executive_officer | 8 | ||||
Aggregate death benefit amount provided in agreement, before inflation adjustment | $ 4,500,000 | ||||
Number of employees covered by the split dollar agreements, Actively employed with us | executive_officer | 3 | ||||
Number of retired covered officers death benefits were paid | executive_officer | 1 | ||||
Number of active covered officers death benefits were paid | executive_officer | 1 | ||||
Number of remaining employees covered by the split dollar agreements | executive_officer | 6 | ||||
Aggregate death benefits, inflation adjusted | $ 4,100,000 | ||||
Expense of split dollar retirement bonus | (250,000) | (3,000) | $ 172,000 | ||
Total split dollar liability | $ 1,400,000 | $ 1,900,000 | |||
Executive officers | Minimum | |||||
Split Dollar Life Insurance Agreements [Abstract] | |||||
Inflation adjustment factor applied to benefits, annual | 3.00% | ||||
Executive officers | Maximum | |||||
Split Dollar Life Insurance Agreements [Abstract] | |||||
Inflation adjustment factor applied to benefits, annual | 5.00% |
EMPLOYEE BENEFITS - Change in Projected Benefit Obligation and Plan Assets (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Defined Benefit Pension Plan | |||
Change in Projected Benefit Obligation: | |||
Benefit obligation at end of prior year | $ 94,276,000 | $ 88,071,000 | $ 80,040,000 |
Service cost | 1,548,000 | 1,398,000 | 1,375,000 |
Interest cost | 3,392,000 | 3,601,000 | 3,731,000 |
Actuarial (gain) loss | (9,399,000) | 5,404,000 | 4,978,000 |
Benefits Paid | (3,622,000) | (4,128,000) | (3,632,000) |
Expenses paid | (203,000) | (70,000) | (91,000) |
Plan Amendments | 0 | 0 | 121,000 |
Settlements | 0 | 0 | 0 |
Special and contractual termination benefits | 0 | 0 | 1,549,000 |
Benefit obligation at end of year | 85,992,000 | 94,276,000 | 88,071,000 |
Change in Plan Assets: | |||
Fair value of plan assets at end of prior year | 91,233,000 | 85,293,000 | 76,355,000 |
Actual return | (4,497,000) | 8,138,000 | 7,661,000 |
Employer contributions | 2,000,000 | 2,000,000 | 5,000,000 |
Benefits paid | (3,622,000) | (4,128,000) | (3,632,000) |
Expenses paid | (203,000) | (70,000) | (91,000) |
Settlements | 0 | 0 | 0 |
Fair value of plan assets at end of year | 84,911,000 | 91,233,000 | 85,293,000 |
(Un)Funded status at end of year | (1,081,000) | (3,043,000) | (2,778,000) |
Accrued benefit (liability) asset recognized | (1,081,000) | (3,043,000) | (2,778,000) |
Accumulated benefit obligation at end of year | 77,888,000 | 83,802,000 | 77,639,000 |
Defined Benefit Pension Plan Acquired | |||
Change in Projected Benefit Obligation: | |||
Benefit obligation at end of prior year | 4,392,000 | 4,238,000 | 4,685,000 |
Service cost | 0 | 0 | 0 |
Interest cost | 163,000 | 177,000 | 212,000 |
Actuarial (gain) loss | (480,000) | 418,000 | 275,000 |
Benefits Paid | (183,000) | (43,000) | (31,000) |
Expenses paid | (19,000) | (47,000) | (39,000) |
Plan Amendments | 0 | 0 | 0 |
Settlements | 0 | (351,000) | (864,000) |
Special and contractual termination benefits | 0 | 0 | 0 |
Benefit obligation at end of year | 3,873,000 | 4,392,000 | 4,238,000 |
Change in Plan Assets: | |||
Fair value of plan assets at end of prior year | 4,031,000 | 2,993,000 | 3,740,000 |
Actual return | (259,000) | 479,000 | 187,000 |
Employer contributions | 500,000 | 1,000,000 | 0 |
Benefits paid | (183,000) | (43,000) | (31,000) |
Expenses paid | (19,000) | (47,000) | (39,000) |
Settlements | 0 | (351,000) | (864,000) |
Fair value of plan assets at end of year | 4,070,000 | 4,031,000 | 2,993,000 |
(Un)Funded status at end of year | 197,000 | (361,000) | (1,245,000) |
Accrued benefit (liability) asset recognized | 197,000 | (361,000) | (1,245,000) |
Accumulated benefit obligation at end of year | 3,873,000 | 4,392,000 | 4,238,000 |
Restoration Plan | |||
Change in Projected Benefit Obligation: | |||
Benefit obligation at end of prior year | 14,642,000 | 12,723,000 | 12,024,000 |
Service cost | 293,000 | 247,000 | 207,000 |
Interest cost | 597,000 | 567,000 | 535,000 |
Actuarial (gain) loss | 344,000 | 1,751,000 | 237,000 |
Benefits Paid | (576,000) | (646,000) | (280,000) |
Expenses paid | 0 | 0 | 0 |
Plan Amendments | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Special and contractual termination benefits | 0 | 0 | 0 |
Benefit obligation at end of year | 15,300,000 | 14,642,000 | 12,723,000 |
Change in Plan Assets: | |||
Fair value of plan assets at end of prior year | 0 | 0 | 0 |
Actual return | 0 | 0 | 0 |
Employer contributions | 576,000 | 646,000 | 280,000 |
Benefits paid | (576,000) | (646,000) | (280,000) |
Expenses paid | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Fair value of plan assets at end of year | 0 | 0 | 0 |
(Un)Funded status at end of year | (15,300,000) | (14,642,000) | (12,723,000) |
Accrued benefit (liability) asset recognized | (15,300,000) | (14,642,000) | (12,723,000) |
Accumulated benefit obligation at end of year | $ 13,403,000 | $ 13,246,000 | $ 11,133,000 |
EMPLOYEE BENEFITS - Amounts Recognized as a Component of Other Comprehensive Income (loss) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Net (loss) gain occurring during the year | $ 1,994 | $ 5,218 | $ 3,132 |
Net prior service (cost) credit occurring during the year | 0 | 0 | 121 |
Defined Benefit Pension Plan | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Recognition of net loss | 1,512 | 1,312 | 1,642 |
Recognition of prior service (credit) cost | (14) | (14) | (14) |
Recognition of loss (gain) due to settlements | 0 | 0 | 0 |
Net (loss) gain occurring during the year | (1,581) | (3,317) | (2,541) |
Net prior service (cost) credit occurring during the year | 0 | 0 | (121) |
Total adjustment during the year | (83) | (2,019) | (1,034) |
Deferred tax benefit (expense) | 17 | 241 | 362 |
Other comprehensive (loss) income, net of tax | (66) | (1,778) | (672) |
Defined Benefit Pension Plan Acquired | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Recognition of net loss | 0 | 0 | 0 |
Recognition of prior service (credit) cost | 0 | 0 | 0 |
Recognition of loss (gain) due to settlements | 0 | 8 | (8) |
Net (loss) gain occurring during the year | (69) | (150) | (354) |
Net prior service (cost) credit occurring during the year | 0 | 0 | 0 |
Total adjustment during the year | (69) | (142) | (362) |
Deferred tax benefit (expense) | 14 | 30 | 127 |
Other comprehensive (loss) income, net of tax | (55) | (112) | (235) |
Restoration Plan | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Recognition of net loss | 677 | 301 | 186 |
Recognition of prior service (credit) cost | 7 | 6 | 6 |
Recognition of loss (gain) due to settlements | 0 | 0 | 0 |
Net (loss) gain occurring during the year | (344) | (1,751) | (237) |
Net prior service (cost) credit occurring during the year | 0 | 0 | 0 |
Total adjustment during the year | 340 | (1,444) | (45) |
Deferred tax benefit (expense) | (71) | 259 | 16 |
Other comprehensive (loss) income, net of tax | $ 269 | $ (1,185) | $ (29) |
EMPLOYEE BENEFITS - Amounts in Accumulated Other Comprehensive Income (Loss) Recognized in Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Defined Benefit Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net loss | $ 1,512 | $ 1,312 | $ 1,642 |
Prior service (credit) cost | (14) | (14) | (14) |
Loss (gain) recognized due to settlement | 0 | 0 | 0 |
Total amount in other comprehensive income recognized in net periodic benefit cost, before tax | 1,498 | 1,298 | |
Deferred tax (expense) benefit | (315) | (454) | |
Accumulated other comprehensive income (loss), net of tax | 1,183 | 844 | |
Defined Benefit Pension Plan Acquired | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net loss | 0 | 0 | 0 |
Prior service (credit) cost | 0 | 0 | 0 |
Loss (gain) recognized due to settlement | 0 | 8 | (8) |
Total amount in other comprehensive income recognized in net periodic benefit cost, before tax | 0 | 8 | |
Deferred tax (expense) benefit | 0 | (2) | |
Accumulated other comprehensive income (loss), net of tax | 0 | 6 | |
Restoration Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Net loss | 677 | 301 | 186 |
Prior service (credit) cost | 7 | 6 | 6 |
Loss (gain) recognized due to settlement | 0 | 0 | $ 0 |
Total amount in other comprehensive income recognized in net periodic benefit cost, before tax | 684 | 307 | |
Deferred tax (expense) benefit | (144) | (107) | |
Accumulated other comprehensive income (loss), net of tax | $ 540 | $ 200 |
EMPLOYEE BENEFITS - Amounts Recognized as a Component of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Defined Benefit Pension Plan | |||||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||||
Net (loss) gain | $ (28,928) | $ (28,859) | |||
Prior service cost | (123) | (109) | |||
Accumulated other comprehensive (loss) income, before tax | (29,051) | (28,968) | |||
Deferred tax benefit (expense) | 6,100 | 9,674 | |||
Reclassification of Certain Tax Effects | [1] | 0 | (3,591) | ||
Accumulated other comprehensive (loss) income, net of tax | (22,951) | (22,885) | |||
Defined Benefit Pension Plan Acquired | |||||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||||
Net (loss) gain | (171) | (102) | |||
Prior service cost | 0 | 0 | |||
Accumulated other comprehensive (loss) income, before tax | (171) | (102) | |||
Deferred tax benefit (expense) | 35 | 15 | |||
Reclassification of Certain Tax Effects | [1] | 0 | 6 | ||
Accumulated other comprehensive (loss) income, net of tax | (136) | (81) | |||
Restoration Plan | |||||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||||
Net (loss) gain | (3,984) | (4,317) | |||
Prior service cost | (24) | (31) | |||
Accumulated other comprehensive (loss) income, before tax | (4,008) | (4,348) | |||
Deferred tax benefit (expense) | 841 | 1,276 | |||
Reclassification of Certain Tax Effects | [1] | 0 | (364) | ||
Accumulated other comprehensive (loss) income, net of tax | $ (3,167) | $ (3,436) | |||
|
EMPLOYEE BENEFITS - Net Periodic Benefit Cost and Postretirement Benefit Cost (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Defined Benefit Pension Plan | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 1,548,000 | $ 1,398,000 | $ 1,375,000 |
Interest cost | 3,392,000 | 3,601,000 | 3,731,000 |
Expected return on assets | (6,483,000) | (6,050,000) | (5,224,000) |
Net loss amortization | 1,512,000 | 1,312,000 | 1,642,000 |
Prior service cost (credit) amortization | (14,000) | (14,000) | (14,000) |
Special and contractual termination benefits | 0 | 0 | 1,549,000 |
Loss (gain) recognized due to settlement | 0 | 0 | 0 |
Net periodic benefit cost | (45,000) | 247,000 | 3,059,000 |
Defined Benefit Pension Plan Acquired | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 163,000 | 177,000 | 212,000 |
Expected return on assets | (290,000) | (212,000) | (265,000) |
Net loss amortization | 0 | 0 | 0 |
Prior service cost (credit) amortization | 0 | 0 | 0 |
Special and contractual termination benefits | 0 | 0 | 0 |
Loss (gain) recognized due to settlement | 0 | 8,000 | (8,000) |
Net periodic benefit cost | (127,000) | (27,000) | (61,000) |
Restoration Plan | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 293,000 | 247,000 | 207,000 |
Interest cost | 597,000 | 567,000 | 535,000 |
Net loss amortization | 677,000 | 301,000 | 186,000 |
Prior service cost (credit) amortization | 7,000 | 6,000 | 6,000 |
Special and contractual termination benefits | 0 | 0 | 0 |
Loss (gain) recognized due to settlement | 0 | 0 | 0 |
Net periodic benefit cost | $ 1,574,000 | $ 1,121,000 | $ 934,000 |
EMPLOYEE BENEFITS - Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in next fiscal year (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Defined Benefit Pension Plan | |
Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Net loss | $ 1,774 |
Prior service (credit) cost | (14) |
Total amount that will be amortized from accumulated other comprehensive income | 1,760 |
Deferred tax benefit | (370) |
Accumulated other comprehensive loss, net of tax | 1,390 |
Defined Benefit Pension Plan Acquired | |
Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Net loss | 0 |
Prior service (credit) cost | 0 |
Total amount that will be amortized from accumulated other comprehensive income | 0 |
Deferred tax benefit | 0 |
Accumulated other comprehensive loss, net of tax | 0 |
Restoration Plan | |
Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Net loss | 398 |
Prior service (credit) cost | 6 |
Total amount that will be amortized from accumulated other comprehensive income | 404 |
Deferred tax benefit | (85) |
Accumulated other comprehensive loss, net of tax | $ 319 |
EMPLOYEE BENEFITS - Assumptions Used to Calculate Benefit Obligation, Net Periodic Benefit Cost and Postretirement Benefit (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Defined Benefit Pension Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.32% | 3.71% | |
Compensation increase rate | 3.50% | 3.50% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.71% | 4.23% | 4.56% |
Expected long-term rate of return on plan assets | 7.25% | 7.25% | 7.25% |
Compensation increase rate | 3.50% | 3.50% | 3.50% |
Defined Benefit Pension Plan Acquired | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.32% | 3.71% | |
Compensation increase rate | 0.00% | 0.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.71% | 4.23% | 4.56% |
Expected long-term rate of return on plan assets | 7.25% | 7.25% | 7.25% |
Compensation increase rate | 0.00% | 0.00% | 0.00% |
Restoration Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.32% | 3.71% | |
Compensation increase rate | 3.50% | 3.50% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.71% | 4.23% | 4.56% |
Compensation increase rate | 3.50% | 3.50% | 3.50% |
EMPLOYEE BENEFITS - Pension Plan Asset Categories (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Defined Benefit Pension Plan | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | $ 84,911 | $ 91,233 | $ 85,293 | $ 76,355 | |||||||||||||||||||||||
Defined Benefit Pension Plan Acquired | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | 4,070 | 4,031 | $ 2,993 | $ 3,740 | |||||||||||||||||||||||
Level 1 | Defined Benefit Pension Plan | Cash | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | 278 | 423 | |||||||||||||||||||||||||
Level 1 | Defined Benefit Pension Plan | U.S. large cap equities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [1] | 5,204 | 6,198 | ||||||||||||||||||||||||
Level 1 | Defined Benefit Pension Plan | U.S. mid cap equities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [2] | 18,913 | 21,379 | ||||||||||||||||||||||||
Level 1 | Defined Benefit Pension Plan | U.S. small cap equities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [3] | 9,900 | 10,706 | ||||||||||||||||||||||||
Level 1 | Defined Benefit Pension Plan | International developed | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [4] | 6,733 | 8,601 | ||||||||||||||||||||||||
Level 1 | Defined Benefit Pension Plan | International emerging | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [2] | 3,464 | 4,308 | ||||||||||||||||||||||||
Level 1 | Defined Benefit Pension Plan Acquired | Cash | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | 0 | 0 | |||||||||||||||||||||||||
Level 1 | Defined Benefit Pension Plan Acquired | U.S. large cap equities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [1] | 0 | 0 | ||||||||||||||||||||||||
Level 1 | Defined Benefit Pension Plan Acquired | U.S. mid cap equities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [2] | 0 | 0 | ||||||||||||||||||||||||
Level 1 | Defined Benefit Pension Plan Acquired | U.S. small cap equities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [3] | 0 | 0 | ||||||||||||||||||||||||
Level 1 | Defined Benefit Pension Plan Acquired | International developed | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [4] | 0 | 0 | ||||||||||||||||||||||||
Level 1 | Defined Benefit Pension Plan Acquired | International emerging | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [2] | 0 | 0 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan | Cash equivalents | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | 15,025 | 13,256 | |||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan | U.S. large cap equities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [1] | 0 | 0 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan | U.S. mid cap equities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [2] | 0 | 0 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan | U.S. small cap equities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [3] | 0 | 0 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan | International | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [5] | 0 | 0 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan | Corporate bonds | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [6] | 952 | 1,118 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan | U.S. government agencies | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [6] | 20,182 | 19,303 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan | Municipal bonds | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [6] | 3,991 | 5,595 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan | U.S. agency mortgage-backed securities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [7] | 269 | 346 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan | Asset-backed Securities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [8] | 0 | 0 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan | Real Estate | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [9] | 0 | 0 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan | Balanced Asset Allocation | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [10] | 0 | 0 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan | Other | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [11] | 0 | 0 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan Acquired | Cash equivalents | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | 0 | 0 | |||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan Acquired | U.S. large cap equities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [1] | 1,360 | 1,440 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan Acquired | U.S. mid cap equities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [2] | 152 | 167 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan Acquired | U.S. small cap equities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [3] | 72 | 84 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan Acquired | International | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [5] | 735 | 712 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan Acquired | Corporate bonds | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [6] | 407 | 378 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan Acquired | U.S. government agencies | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [6] | 0 | 0 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan Acquired | Municipal bonds | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [6] | 0 | 0 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan Acquired | U.S. agency mortgage-backed securities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [7] | 0 | 0 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan Acquired | Asset-backed Securities | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [8] | 743 | 717 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan Acquired | Real Estate | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [9] | 286 | 241 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan Acquired | Balanced Asset Allocation | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [10] | 84 | 81 | ||||||||||||||||||||||||
Level 2 | Defined Benefit Pension Plan Acquired | Other | |||||||||||||||||||||||||||
Defined Benefit Plan, Categories of Plan Assets [Abstract] | |||||||||||||||||||||||||||
Total fair value of plan assets | [11] | $ 231 | $ 211 | ||||||||||||||||||||||||
|
EMPLOYEE BENEFITS - Expected Future Benefit Payments (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Defined Benefit Pension Plan | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2019 | $ 3,836 |
2020 | 3,951 |
2021 | 4,142 |
2022 | 4,354 |
2023 | 4,520 |
2024 through 2028 | 25,008 |
Total expected future payments | 45,811 |
Defined Benefit Pension Plan Acquired | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2019 | 66 |
2020 | 229 |
2021 | 129 |
2022 | 90 |
2023 | 92 |
2024 through 2028 | 897 |
Total expected future payments | 1,503 |
Restoration Plan | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2019 | 723 |
2020 | 780 |
2021 | 916 |
2022 | 1,031 |
2023 | 1,005 |
2024 through 2028 | 5,521 |
Total expected future payments | $ 9,976 |
EMPLOYEE BENEFITS - Schedule of Shares Issued in Connection with Stock Compensation Awards (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
New shares issued (in shares) | 140,692 | 159,356 | 108,225 |
Proceeds from stock options exercised | $ 2,653 | $ 2,692 | $ 1,663 |
New shares issued from authorized shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
New shares issued (in shares) | 0 | 48,311 | 108,225 |
New shares issued from available treasury shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
New shares issued (in shares) | 140,692 | 111,045 | 0 |
EMPLOYEE BENEFITS - Stock Option Valuation Assumptions (Details) - Stock options - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant date fair value per option (in dollars per share) | $ 6.78 | $ 7.18 |
Weighted-average assumptions: | ||
Risk-free interest rates | 2.81% | 1.79% |
Expected dividend yield | 1.10% | 2.69% |
Expected volatility factors of the market price of Southside Bancshares common stock | 25.41% | 27.02% |
Expected option life (in years) | 6 years 2 months 16 days | 6 years 2 months 16 days |
EMPLOYEE BENEFITS - Summary of Activity of Share-based Plans (Details) |
12 Months Ended |
---|---|
Dec. 31, 2018
$ / shares
shares
| |
Restricted Stock Units Outstanding | |
Number of Shares | |
Balance, January 1, 2018 (shares) | shares | 78,253 |
Granted (shares) | shares | 64,358 |
Stock awards vested (shares) | shares | (29,752) |
Forfeited (shares) | shares | (3,109) |
Canceled/expired (shares) | shares | 0 |
Balance, December 31, 2018 (shares) | shares | 109,750 |
Weighted- Average Grant-Date Fair Value | |
Balance, January 1, 2018 (in dollars per share) | $ 32.04 |
Granted (in dollars per share) | 34.28 |
Stock awards vested (in dollars per share) | 31.14 |
Forfeited (in dollars per share) | 32.93 |
Canceled/expired (in dollars per share) | 0 |
Balance, December 31, 2018 (in dollars per share) | $ 33.57 |
Stock Options Outstanding | |
Number of Shares | |
Balance, January 1, 2018 (shares) | shares | 690,312 |
Granted (shares) | shares | 356,849 |
Stock options exercised (shares) | shares | (115,277) |
Forfeited (shares) | shares | (16,980) |
Canceled/expired (shares) | shares | (5,553) |
Balance, December 31, 2018 (shares) | shares | 909,351 |
Weighted- Average Exercise Price | |
Balance, January 1, 2018 (in dollars per share) | $ 26.02 |
Granted (in dollars per share) | 34.52 |
Stock options exercised (in dollars per share) | 23.02 |
Forfeited (in dollars per share) | 32.51 |
Canceled/expired (in dollars per share) | 30.06 |
Balance, December 31, 2018 (in dollars per share) | 29.59 |
Weighted- Average Grant-Date Fair Value | |
Balance, January 1, 2018 (in dollars per share) | 6.19 |
Granted (in dollars per share) | 6.78 |
Stock options exercised (in dollars per share) | 5.69 |
Forfeited (in dollars per share) | 6.67 |
Canceled/expired (in dollars per share) | 6.68 |
Balance, December 31, 2018 (in dollars per share) | $ 6.47 |
EMPLOYEE BENEFITS - Stock Options Exercise Price Range (Details) |
12 Months Ended |
---|---|
Dec. 31, 2018
$ / shares
shares
| |
Options Outstanding | |
Number of Shares (in shares) | shares | 909,351 |
Weighted- Average Exercise Price (in dollars per share) | $ 29.59 |
Weighted- Average Remaining Contractual Life in Years | 7 years 3 months 10 days |
Options Exercisable | |
Number of Shares (in shares) | shares | 406,361 |
Weighted- Average Exercise Price (in dollars per share) | $ 24.97 |
$14.67 - $20.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices - Lower Range Limit (in dollars per share) | 14.67 |
Range of Exercise Prices - Upper Range Limit (in dollars per share) | $ 20.00 |
Options Outstanding | |
Number of Shares (in shares) | shares | 110,291 |
Weighted- Average Exercise Price (in dollars per share) | $ 15.89 |
Weighted- Average Remaining Contractual Life in Years | 3 years 12 days |
Options Exercisable | |
Number of Shares (in shares) | shares | 110,291 |
Weighted- Average Exercise Price (in dollars per share) | $ 15.89 |
$20.01 - $25.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices - Lower Range Limit (in dollars per share) | 20.01 |
Range of Exercise Prices - Upper Range Limit (in dollars per share) | $ 25.00 |
Options Outstanding | |
Number of Shares (in shares) | shares | 106,826 |
Weighted- Average Exercise Price (in dollars per share) | $ 22.92 |
Weighted- Average Remaining Contractual Life in Years | 5 years 5 months 6 days |
Options Exercisable | |
Number of Shares (in shares) | shares | 82,747 |
Weighted- Average Exercise Price (in dollars per share) | $ 23.01 |
$25.01 - $30.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices - Lower Range Limit (in dollars per share) | 25.01 |
Range of Exercise Prices - Upper Range Limit (in dollars per share) | $ 30.00 |
Options Outstanding | |
Number of Shares (in shares) | shares | 202,009 |
Weighted- Average Exercise Price (in dollars per share) | $ 26.68 |
Weighted- Average Remaining Contractual Life in Years | 6 years 5 months 20 days |
Options Exercisable | |
Number of Shares (in shares) | shares | 136,613 |
Weighted- Average Exercise Price (in dollars per share) | $ 26.58 |
$30.01 - $35.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices - Lower Range Limit (in dollars per share) | 30.01 |
Range of Exercise Prices - Upper Range Limit (in dollars per share) | $ 35.00 |
Options Outstanding | |
Number of Shares (in shares) | shares | 346,965 |
Weighted- Average Exercise Price (in dollars per share) | $ 34.52 |
Weighted- Average Remaining Contractual Life in Years | 9 years 4 months 28 days |
Options Exercisable | |
Number of Shares (in shares) | shares | 0 |
Weighted- Average Exercise Price (in dollars per share) | $ 0.00 |
$35.01 - $37.28 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices - Lower Range Limit (in dollars per share) | 35.01 |
Range of Exercise Prices - Upper Range Limit (in dollars per share) | $ 37.28 |
Options Outstanding | |
Number of Shares (in shares) | shares | 143,260 |
Weighted- Average Exercise Price (in dollars per share) | $ 37.28 |
Weighted- Average Remaining Contractual Life in Years | 7 years 10 months 25 days |
Options Exercisable | |
Number of Shares (in shares) | shares | 76,710 |
Weighted- Average Exercise Price (in dollars per share) | $ 37.28 |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017
contract
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Derivative [Line Items] | |||
Debt face amount | $ 270,000,000 | ||
Cash collateral received | 8,306,000 | $ 7,900,000 | |
Interest Rate Swaps | |||
Derivative [Line Items] | |||
Derivative, instruments terminated | contract | 2 | ||
Available-for-sale Securities [Member] | Fixed rate callable securities [Member] | |||
Derivative [Line Items] | |||
Hedged Asset, Fair Value Hedge | $ 23,700,000 |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Instruments (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Derivative Asset [Abstract] | ||
Gross derivatives | $ 11,594,000 | $ 8,626,000 |
Offsetting derivative assets/liabilities | (2,201,000) | (114,000) |
Cash collateral received/posted | (8,306,000) | (7,900,000) |
Net derivatives included in the consolidated balance sheets | 1,087,000 | 612,000 |
Derivative Liability [Abstract] | ||
Gross derivatives | 3,320,000 | 726,000 |
Offsetting derivative assets/liabilities | (2,201,000) | (114,000) |
Cash collateral received/posted | 0 | (520,000) |
Net derivatives included in the consolidated balance sheets | 1,119,000 | 92,000 |
Financial institution counterparties | ||
Derivative Liability [Abstract] | ||
Net credit exposure | 0 | 30,000 |
Financial institution counterparties | Derivatives designated as hedging instruments | Cash Flow Hedging | Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 270,000,000 | 240,000,000 |
Derivative Asset [Abstract] | ||
Gross derivatives | 9,388,000 | 7,922,000 |
Derivative Liability [Abstract] | ||
Gross derivatives | 457,000 | 22,000 |
Financial institution counterparties | Derivatives designated as hedging instruments | Fair Value Hedging [Member] | Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 21,100,000 | 0 |
Derivative Asset [Abstract] | ||
Gross derivatives | 0 | 0 |
Derivative Liability [Abstract] | ||
Gross derivatives | 657,000 | 0 |
Financial institution counterparties | Derivatives designated as non-hedging instruments | Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 93,967,000 | 67,220,000 |
Derivative Asset [Abstract] | ||
Gross derivatives | 1,119,000 | 92,000 |
Derivative Liability [Abstract] | ||
Gross derivatives | 1,087,000 | 612,000 |
Customer counterparties | ||
Derivative Liability [Abstract] | ||
Net credit exposure | 1,100,000 | 612,000 |
Customer counterparties | Derivatives designated as non-hedging instruments | Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 93,967,000 | 67,220,000 |
Derivative Asset [Abstract] | ||
Gross derivatives | 1,087,000 | 612,000 |
Derivative Liability [Abstract] | ||
Gross derivatives | $ 1,119,000 | $ 92,000 |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Weighted Average Remaining Maturity, Lives, and Rates of Interest Rate Swaps (Details) - Interest Rate Swaps - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Financial institution counterparties | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional Amount | $ 93,967 | $ 67,220 |
Remaining Maturity | 11 years 7 months 21 days | 12 years 8 months 15 days |
Receive Rate | 2.36% | 1.39% |
Pay Rate | 2.58% | 2.37% |
Financial institution counterparties | Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional Amount | $ 270,000 | $ 240,000 |
Remaining Maturity | 4 years 9 months 28 days | 5 years 3 months |
Receive Rate | 2.45% | 1.44% |
Pay Rate | 1.58% | 1.43% |
Financial institution counterparties | Fair Value Hedging [Member] | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional Amount | $ 21,100 | $ 0 |
Remaining Maturity | 7 years 6 months 1 day | |
Receive Rate | 2.56% | |
Pay Rate | 3.00% | |
Customer counterparties | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional Amount | $ 93,967 | $ 67,220 |
Remaining Maturity | 11 years 7 months 21 days | 12 years 8 months 15 days |
Receive Rate | 2.58% | 2.37% |
Pay Rate | 2.36% | 1.39% |
FAIR VALUE MEASUREMENT - Fair Value Measurements, Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
|||||||
---|---|---|---|---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | $ 1,989,436 | ||||||||
Securities available for sale, at estimated fair value | $ 1,538,755 | ||||||||
Derivative assets: Interest rate swaps | 1,087 | 612 | |||||||
Derivative liabilities: Interest rate swaps | 1,119 | 92 | |||||||
U.S. Government Agency Debentures | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 108,869 | ||||||||
State and Political Subdivisions | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 716,601 | ||||||||
Securities available for sale, at estimated fair value | 392,664 | ||||||||
Other Stocks and Bonds | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 2,709 | ||||||||
Securities available for sale, at estimated fair value | 5,055 | ||||||||
Residential MBS | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 732,972 | ||||||||
Securities available for sale, at estimated fair value | 718,029 | ||||||||
Commercial MBS | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 537,154 | ||||||||
Securities available for sale, at estimated fair value | 308,218 | ||||||||
Equity Investments | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 5,920 | ||||||||
Fair Value, Measurements, Recurring [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Equity investments | [1] | 5,791 | |||||||
Total asset fair value measurements | 2,006,821 | 1,547,381 | |||||||
Total liability fair value measurements | 3,320 | 726 | |||||||
Fair Value, Measurements, Recurring [Member] | U.S. Government Agency Debentures | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 108,869 | ||||||||
Fair Value, Measurements, Recurring [Member] | State and Political Subdivisions | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 716,601 | ||||||||
Securities available for sale, at estimated fair value | 392,664 | ||||||||
Fair Value, Measurements, Recurring [Member] | Other Stocks and Bonds | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 2,709 | ||||||||
Securities available for sale, at estimated fair value | 5,055 | ||||||||
Fair Value, Measurements, Recurring [Member] | Residential MBS | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | [2] | 732,972 | |||||||
Securities available for sale, at estimated fair value | [2] | 718,029 | |||||||
Fair Value, Measurements, Recurring [Member] | Commercial MBS | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | [2] | 537,154 | |||||||
Securities available for sale, at estimated fair value | [2] | 308,218 | |||||||
Fair Value, Measurements, Recurring [Member] | Equity Investments | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | [1] | 5,920 | |||||||
Fair Value, Measurements, Recurring [Member] | Interest Rate Swaps | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative assets: Interest rate swaps | 11,594 | 8,626 | |||||||
Derivative liabilities: Interest rate swaps | 3,320 | 726 | |||||||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Equity investments | [1] | 5,791 | |||||||
Total asset fair value measurements | 5,791 | 5,920 | |||||||
Total liability fair value measurements | 0 | 0 | |||||||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government Agency Debentures | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 0 | ||||||||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | State and Political Subdivisions | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 0 | ||||||||
Securities available for sale, at estimated fair value | 0 | ||||||||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Stocks and Bonds | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 0 | ||||||||
Securities available for sale, at estimated fair value | 0 | ||||||||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential MBS | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | [2] | 0 | |||||||
Securities available for sale, at estimated fair value | [2] | 0 | |||||||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial MBS | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | [2] | 0 | |||||||
Securities available for sale, at estimated fair value | [2] | 0 | |||||||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Investments | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | [1] | 5,920 | |||||||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest Rate Swaps | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative assets: Interest rate swaps | 0 | 0 | |||||||
Derivative liabilities: Interest rate swaps | 0 | 0 | |||||||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Equity investments | [1] | 0 | |||||||
Total asset fair value measurements | 2,001,030 | 1,541,461 | |||||||
Total liability fair value measurements | 3,320 | 726 | |||||||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | U.S. Government Agency Debentures | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 108,869 | ||||||||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | State and Political Subdivisions | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 716,601 | ||||||||
Securities available for sale, at estimated fair value | 392,664 | ||||||||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Other Stocks and Bonds | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 2,709 | ||||||||
Securities available for sale, at estimated fair value | 5,055 | ||||||||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Residential MBS | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | [2] | 732,972 | |||||||
Securities available for sale, at estimated fair value | [2] | 718,029 | |||||||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Commercial MBS | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | [2] | 537,154 | |||||||
Securities available for sale, at estimated fair value | [2] | 308,218 | |||||||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Equity Investments | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | [1] | 0 | |||||||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | Interest Rate Swaps | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative assets: Interest rate swaps | 11,594 | 8,626 | |||||||
Derivative liabilities: Interest rate swaps | 3,320 | 726 | |||||||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Equity investments | [1] | 0 | |||||||
Total asset fair value measurements | 0 | 0 | |||||||
Total liability fair value measurements | 0 | 0 | |||||||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | U.S. Government Agency Debentures | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 0 | ||||||||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | State and Political Subdivisions | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 0 | ||||||||
Securities available for sale, at estimated fair value | 0 | ||||||||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Other Stocks and Bonds | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | 0 | ||||||||
Securities available for sale, at estimated fair value | 0 | ||||||||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Residential MBS | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | [2] | 0 | |||||||
Securities available for sale, at estimated fair value | [2] | 0 | |||||||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Commercial MBS | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | [2] | 0 | |||||||
Securities available for sale, at estimated fair value | [2] | 0 | |||||||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Equity Investments | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Securities available for sale, at estimated fair value | [1] | 0 | |||||||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | Interest Rate Swaps | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative assets: Interest rate swaps | 0 | 0 | |||||||
Derivative liabilities: Interest rate swaps | 0 | 0 | |||||||
Fair Value, Measurements, Nonrecurring [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Foreclosed assets | 1,206 | 1,767 | |||||||
Impaired loans | [3] | 37,813 | 6,536 | ||||||
Total asset fair value measurements | 39,019 | 8,303 | |||||||
Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Foreclosed assets | 0 | 0 | |||||||
Impaired loans | [3] | 0 | 0 | ||||||
Total asset fair value measurements | 0 | 0 | |||||||
Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Foreclosed assets | 0 | 0 | |||||||
Impaired loans | [3] | 0 | 0 | ||||||
Total asset fair value measurements | 0 | 0 | |||||||
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Foreclosed assets | 1,206 | 1,767 | |||||||
Impaired loans | [3] | 37,813 | 6,536 | ||||||
Total asset fair value measurements | $ 39,019 | $ 8,303 | |||||||
|
FAIR VALUE MEASUREMENT - Fair Value, Balance Sheet Grouping (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | $ 120,719 | $ 198,692 |
Investment Securities: | ||
Held to maturity, at carrying value | 3,083 | 413,632 |
Mortgage-backed securities: | ||
Held to maturity, at carrying value | 159,848 | 495,874 |
FHLB stock, at cost | 32,583 | 55,729 |
Equity investments | 6,302 | 5,821 |
Loans, net of allowance for loan losses | 3,285,780 | 3,273,575 |
Loans held for sale | 601 | 2,001 |
Financial Liabilities: | ||
Deposits | 4,425,030 | 4,515,447 |
Federal funds purchased and repurchase agreements | 36,810 | 9,498 |
FHLB borrowings | 719,065 | 1,017,361 |
Subordinated notes, net of unamortized debt issuance costs | 98,407 | 98,248 |
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,246 | 60,241 |
Estimated Fair Value | ||
Financial Assets | ||
Cash and cash equivalents | 120,719 | 198,692 |
Investment Securities: | ||
Held to maturity, at carrying value | 3,046 | 421,928 |
Mortgage-backed securities: | ||
Held to maturity, at carrying value | 156,735 | 499,872 |
FHLB stock, at cost | 32,583 | 55,729 |
Equity investments | 6,302 | 5,821 |
Loans, net of allowance for loan losses | 3,251,923 | 3,269,316 |
Loans held for sale | 601 | 2,001 |
Financial Liabilities: | ||
Deposits | 4,417,902 | 4,506,133 |
Federal funds purchased and repurchase agreements | 36,810 | 9,498 |
FHLB borrowings | 708,904 | 1,008,292 |
Subordinated notes, net of unamortized debt issuance costs | 97,611 | 99,665 |
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 54,729 | 47,622 |
Estimated Fair Value | Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 120,719 | 198,692 |
Investment Securities: | ||
Held to maturity, at carrying value | 0 | 0 |
Mortgage-backed securities: | ||
Held to maturity, at carrying value | 0 | 0 |
FHLB stock, at cost | 0 | 0 |
Equity investments | 0 | 0 |
Loans, net of allowance for loan losses | 0 | 0 |
Loans held for sale | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Federal funds purchased and repurchase agreements | 0 | 0 |
FHLB borrowings | 0 | 0 |
Subordinated notes, net of unamortized debt issuance costs | 0 | 0 |
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Investment Securities: | ||
Held to maturity, at carrying value | 3,046 | 421,928 |
Mortgage-backed securities: | ||
Held to maturity, at carrying value | 156,735 | 499,872 |
FHLB stock, at cost | 32,583 | 55,729 |
Equity investments | 6,302 | 5,821 |
Loans, net of allowance for loan losses | 0 | 0 |
Loans held for sale | 601 | 2,001 |
Financial Liabilities: | ||
Deposits | 4,417,902 | 4,506,133 |
Federal funds purchased and repurchase agreements | 36,810 | 9,498 |
FHLB borrowings | 708,904 | 1,008,292 |
Subordinated notes, net of unamortized debt issuance costs | 97,611 | 99,665 |
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 54,729 | 47,622 |
Estimated Fair Value | Level 3 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Investment Securities: | ||
Held to maturity, at carrying value | 0 | 0 |
Mortgage-backed securities: | ||
Held to maturity, at carrying value | 0 | 0 |
FHLB stock, at cost | 0 | 0 |
Equity investments | 0 | 0 |
Loans, net of allowance for loan losses | 3,251,923 | 3,269,316 |
Loans held for sale | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Federal funds purchased and repurchase agreements | 0 | 0 |
FHLB borrowings | 0 | 0 |
Subordinated notes, net of unamortized debt issuance costs | 0 | 0 |
Trust preferred subordinated debentures, net of unamortized debt issuance costs | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT - Fair Value Measurements, Narrative (Details) |
12 Months Ended |
---|---|
Dec. 31, 2018
source
| |
Available-for-sale Securities [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Number of third party sources used to validate prices | 2 |
Derivative [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Number of third party sources used to validate prices | 3 |
SHAREHOLDERS' EQUITY - Regulatory Capital Requirements (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Consolidated | |||||
Common Equity Tier 1 (to Risk Weighted Assets) | |||||
Common Equity Tier 1 Capital | $ 568,283 | $ 570,610 | |||
Common Equity Tier 1 Capital for Capital Adequacy Purposes | $ 173,174 | $ 175,216 | |||
Common Equity Tier 1 (to Risk Weighted Assets) Ratios [Abstract] | |||||
Common Equity Tier 1 Capital to Risk Weighted Assets | 14.77% | 14.65% | |||
Common Equity TIer 1 Required for Capital Adequacy Purposes to Risk Weighted Assets | 4.50% | 4.50% | |||
Tier 1 Capital (to Risk Weighted Assets) | |||||
Tier 1 Capital | $ 626,718 | $ 627,532 | |||
Tier 1 Capital Required for Capital Adequacy Purposes | $ 230,899 | $ 233,621 | |||
Tier 1 Capital (to Risk Weighted Assets) Ratios | |||||
Tier 1 Capital to Risk Weighted Assets | 16.29% | 16.12% | |||
Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted Assets | 6.00% | 6.00% | |||
Total Capital (to Risk Weighted Assets) | |||||
Total Capital | $ 754,034 | $ 748,532 | |||
Total Capital Required for Capital Adequacy Purposes | $ 307,865 | $ 311,495 | |||
Total Capital (to Risk Weighted Assets) Ratios | |||||
Total Capital to Risk Weighted Assets | 19.59% | 19.22% | |||
Total Capital Required for Capital Adequacy Purposes to Risk Weighted Assets | 8.00% | 8.00% | |||
Tier 1 Capital (to Average Assets) | |||||
Tier 1 Capital | [1] | $ 626,718 | $ 627,532 | ||
Tier 1 Capital Required for Capital Adequacy Purposes | [1] | $ 235,689 | $ 224,844 | ||
Tier 1 Capital (to Average Assets) Ratios | |||||
Tier 1 Capital to Average Assets | [1] | 10.64% | 11.16% | ||
Tier 1 Capital Required for Capital Adequacy Purposes to Average Assets | [1] | 4.00% | 4.00% | ||
Bank Only | |||||
Common Equity Tier 1 (to Risk Weighted Assets) | |||||
Common Equity Tier 1 Capital | $ 714,991 | $ 711,157 | |||
Common Equity Tier 1 Capital for Capital Adequacy Purposes | 173,095 | 175,145 | |||
Common Equity Tier 1 Capital to be Well Capitalized | $ 250,026 | $ 252,987 | |||
Common Equity Tier 1 (to Risk Weighted Assets) Ratios [Abstract] | |||||
Common Equity Tier 1 Capital to Risk Weighted Assets | 18.59% | 18.27% | |||
Common Equity TIer 1 Required for Capital Adequacy Purposes to Risk Weighted Assets | 4.50% | 4.50% | |||
Common Equity Tier 1 Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% | |||
Tier 1 Capital (to Risk Weighted Assets) | |||||
Tier 1 Capital | $ 714,991 | $ 711,157 | |||
Tier 1 Capital Required for Capital Adequacy Purposes | 230,793 | 233,527 | |||
Tier 1 Capital Required to be Well Capitalized | $ 307,725 | $ 311,369 | |||
Tier 1 Capital (to Risk Weighted Assets) Ratios | |||||
Tier 1 Capital to Risk Weighted Assets | 18.59% | 18.27% | |||
Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted Assets | 6.00% | 6.00% | |||
Tier 1 Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% | |||
Total Capital (to Risk Weighted Assets) | |||||
Total Capital | $ 743,900 | $ 733,909 | |||
Total Capital Required for Capital Adequacy Purposes | 307,725 | 311,369 | |||
Total Capital Required to be Well Capitalized | $ 384,656 | $ 389,211 | |||
Total Capital (to Risk Weighted Assets) Ratios | |||||
Total Capital to Risk Weighted Assets | 19.34% | 18.86% | |||
Total Capital Required for Capital Adequacy Purposes to Risk Weighted Assets | 8.00% | 8.00% | |||
Total Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% | |||
Tier 1 Capital (to Average Assets) | |||||
Tier 1 Capital | [1] | $ 714,991 | $ 711,157 | ||
Tier 1 Capital Required for Capital Adequacy Purposes | [1] | 235,532 | 224,741 | ||
Tier 1 Capital Required to be Well Capitalized | [1] | $ 294,415 | $ 280,926 | ||
Tier 1 Capital (to Average Assets) Ratios | |||||
Tier 1 Capital to Average Assets | [1] | 12.14% | 12.66% | ||
Tier 1 Capital Required for Capital Adequacy Purposes to Average Assets | [1] | 4.00% | 4.00% | ||
Tier 1 Capital Required to be Well Capitalized to Average Assets | [1] | 5.00% | 5.00% | ||
|
SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 06, 2016 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Payments of Ordinary Dividends [Abstract] | ||||||||||||
Dividends paid on common stock (in dollars per share) | $ 0.32 | $ 0.3 | $ 0.3 | $ 0.28 | $ 0.3 | $ 0.28 | $ 0.28 | $ 0.25 | $ 1.20 | $ 1.11 | $ 1.01 | |
Net issuance of common stock (in shares) | 2,185,000 | 2,185,000 | ||||||||||
Price of shares issued (in dollars per share) | $ 36.50 | |||||||||||
Value of stock issued during the period | $ 200,100 | $ 75,992 |
DIVIDEND REINVESTMENT AND COMMON STOCK REPURCHASE PLAN (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Jan. 07, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Class of Stock [Line Items] | ||||
Stock issued during period under dividend reinvestment plan (in shares) | 42,872 | 43,650 | 44,575 | |
Stock issued during period under dividend reinvestment plan, average price per share (in dollars per share) | $ 34.45 | $ 33.99 | ||
Purchase of common stock (in shares) | 1,459,148 | 0 | 443,426 | |
Repurchase of common stock, cost | $ 47,193 | $ 10,199 | ||
Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Purchase of common stock (in shares) | 40,852 | |||
Average cost per share (in usd per share) | $ 32.42 |
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Tax Disclosure [Abstract] | |||||||||||
Current income tax expense | $ 4,009 | $ 12,607 | $ 8,557 | ||||||||
Deferred income tax expense | 6,154 | 3,514 | 1,768 | ||||||||
Income tax expense | $ 2,521 | $ 2,192 | $ 3,360 | $ 2,090 | $ 5,870 | $ 3,890 | $ 3,353 | $ 3,008 | $ 10,163 | $ 16,121 | $ 10,325 |
INCOME TAXES - Summary of Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets | ||
Allowance for loan losses | $ 5,673 | $ 4,364 |
Unrealized losses on securities available for sale | 7,926 | 4,285 |
Fair value adjustment on loans | 1,894 | 2,607 |
Alternative minimum tax credit | 6,943 | |
Unfunded status of defined benefit plan | 6,979 | 7,018 |
State business tax credit | 483 | 544 |
Stock-based compensation | 797 | 642 |
Gross deferred tax assets | 23,752 | 26,403 |
Liabilities | ||
Retirement and other benefit plans | (2,519) | (2,102) |
Premises and equipment | (6,360) | (5,716) |
Core deposit intangible | (2,748) | (3,660) |
Effective hedging derivatives | (1,761) | (1,701) |
Fair value adjustment on time deposits | (6) | (54) |
Other | (582) | (966) |
Gross deferred tax liabilities | (13,976) | (14,199) |
Net deferred tax asset at year-end | $ 9,776 | $ 12,204 |
INCOME TAXES - Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Amount | |||||||||||
Statutory tax expense | $ 17,703 | $ 24,652 | $ 20,886 | ||||||||
Increase (decrease) in taxes from: | |||||||||||
Tax rate changes | (767) | 2,416 | 0 | ||||||||
Tax exempt interest | (6,257) | (10,195) | (9,879) | ||||||||
Bank Owned Life Insurance | (613) | (885) | (915) | ||||||||
Share-based compensation | (191) | (482) | 0 | ||||||||
Acquisition costs | 0 | 467 | 0 | ||||||||
State Business Tax | 297 | 68 | 71 | ||||||||
Other, net | (9) | 80 | 162 | ||||||||
Income tax expense | $ 2,521 | $ 2,192 | $ 3,360 | $ 2,090 | $ 5,870 | $ 3,890 | $ 3,353 | $ 3,008 | $ 10,163 | $ 16,121 | $ 10,325 |
Percent of Pre-Tax Income | |||||||||||
Statutory tax expense | 21.00% | 35.00% | 35.00% | ||||||||
Increase (Decrease) in Taxes From: | |||||||||||
Percent of Pre-tax income, tax rate changes | (0.90%) | 3.40% | 0.00% | ||||||||
Percent of Pre-tax income, Tax exempt interest | (7.40%) | (14.50%) | (16.60%) | ||||||||
Percent of Pre-tax income, Bank Owned Life Insurance | (0.70%) | (1.20%) | (1.50%) | ||||||||
Percent of Pre-tax income, Share based compensation | (0.20%) | (0.70%) | 0.00% | ||||||||
Percent of Pre-tax income, Acquisition Costs | 0.00% | 0.70% | 0.00% | ||||||||
Percent of Pre-tax income, State Business Tax | 0.30% | 0.10% | 0.10% | ||||||||
Percent of Pre-tax income, Other Net | 0.00% | 0.10% | 0.30% | ||||||||
Percent of Pre-tax income, Income tax expense | 12.10% | 22.90% | 17.30% |
INCOME TAXES Narrative (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Narrative [Abstract] | ||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax Credit Recognized | $ 7,800,000 | |
Deferred tax asset valuation allowance | $ 0 | $ 0 |
OFF-BALANCE-SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Off-Balance Sheet Arrangements, Commitments and Contingencies (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, at fair value | $ 901,995 | $ 819,605 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, at fair value | 874,557 | 804,715 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk, at fair value | $ 27,438 | $ 14,890 |
OFF-BALANCE-SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Operating Lease Commitments and Rent Expense (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 1,265 |
2020 | 1,158 |
2021 | 906 |
2022 | 742 |
2023 | 560 |
2024 and thereafter | 1,352 |
Total future minimum payments due | $ 5,983 |
OFF-BALANCE-SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Operating Lease - Lessor (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 2,574 |
2020 | 2,427 |
2021 | 1,374 |
2022 | 1,352 |
2023 | 1,119 |
2024 and thereafter | 3,996 |
Future minimum payments receivable | $ 12,842 |
OFF-BALANCE-SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Narrative (Details) ft² in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018
USD ($)
ft²
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Jan. 01, 2019
USD ($)
|
|
Long-term Purchase Commitment [Line Items] | ||||
Number of square feet in building acquired | ft² | 202 | |||
Number of square feet occupied | ft² | 41 | |||
Lease revenue | $ 3,000,000 | $ 3,100,000 | $ 3,100,000 | |
Securities | ||||
Unsettled trades to purchase securities | 6,378,000 | 0 | 160,000 | |
Unsettled trades to sell securities | 0 | 0 | ||
Deposits [Abstract] | ||||
Unsettled issuances of brokered certificates of deposit | 15,236,000 | 0 | 0 | |
Land, Buildings and Improvements | ||||
Long-term Purchase Commitment [Line Items] | ||||
Rent expense | 1,800,000 | 1,700,000 | 3,900,000 | |
Office Equipment | ||||
Long-term Purchase Commitment [Line Items] | ||||
Rent expense | $ 160,000 | $ 178,000 | $ 261,000 | |
Subsequent Event | Accounting Standards Update 2016-02 | ||||
Long-term Purchase Commitment [Line Items] | ||||
Increase in Operating Liabilities | $ 10,100,000 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 9,800,000 |
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK (Details) |
12 Months Ended |
---|---|
Dec. 31, 2018
Rate
| |
Residential Real Estate [Member] | Credit Concentration Risk | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 31.80% |
PARENT COMPANY FINANCIAL INFORMATION - BALANCE SHEETS (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash and due from banks | $ 87,375 | $ 79,171 | ||||
Other assets | 14,025 | 15,076 | ||||
Total assets | 6,123,494 | 6,498,097 | ||||
Liabilities [Abstract] | ||||||
Subordinated notes, net of unamortized debt issuance costs | [1] | 98,407 | 98,248 | |||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,246 | 60,241 | ||||
Other liabilities | 46,267 | 43,162 | ||||
Total liabilities | 5,392,203 | 5,743,957 | ||||
Stockholders' Equity Attributable to Parent [Abstract] | ||||||
Common stock: ($1.25 par value, 80,000,000 shares authorized and 37,845,224 shares issued at December 31, 2018 and 40,000,000 shares authorized and 37,802,352 shares issued at December 31, 2017) | 47,307 | 47,253 | ||||
Paid-in capital | 762,470 | 757,439 | ||||
Retained earnings | 64,797 | 32,851 | ||||
Treasury stock, at cost (4,120,475 at December 31, 2018 and 2,802,019 at December 31, 2017) | (93,055) | (47,105) | ||||
Accumulated other comprehensive loss | (50,228) | (36,298) | ||||
Total shareholders’ equity | 731,291 | 754,140 | $ 518,274 | $ 444,062 | ||
Total liabilities and shareholders’ equity | 6,123,494 | 6,498,097 | ||||
Parent | ||||||
ASSETS | ||||||
Cash and due from banks | 11,431 | 8,483 | ||||
Other assets | 4,290 | 10,350 | ||||
Total assets | 893,361 | 914,669 | ||||
Liabilities [Abstract] | ||||||
Subordinated notes, net of unamortized debt issuance costs | 98,407 | 98,248 | ||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs | 60,246 | 60,241 | ||||
Other liabilities | 3,417 | 2,040 | ||||
Total liabilities | 162,070 | 160,529 | ||||
Stockholders' Equity Attributable to Parent [Abstract] | ||||||
Common stock: ($1.25 par value, 80,000,000 shares authorized and 37,845,224 shares issued at December 31, 2018 and 40,000,000 shares authorized and 37,802,352 shares issued at December 31, 2017) | 47,307 | 47,253 | ||||
Paid-in capital | 762,470 | 757,439 | ||||
Retained earnings | 64,797 | 32,851 | ||||
Treasury stock, at cost (4,120,475 at December 31, 2018 and 2,802,019 at December 31, 2017) | (93,055) | (47,105) | ||||
Accumulated other comprehensive loss | (50,228) | (36,298) | ||||
Total shareholders’ equity | 731,291 | 754,140 | ||||
Total liabilities and shareholders’ equity | 893,361 | 914,669 | ||||
Parent | Bank subsidiaries | ||||||
ASSETS | ||||||
Investment in subsidiaries at equity in underlying net assets | 875,814 | 894,010 | ||||
Parent | Nonbank subsidiaries | ||||||
ASSETS | ||||||
Investment in subsidiaries at equity in underlying net assets | $ 1,826 | $ 1,826 | ||||
|
PARENT COMPANY FINANCIAL INFORMATION - BALANCE SHEETS SHARE INFORMATION (Details) - $ / shares |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Common stock, par value (in dollars per share) | $ 1.25 | $ 1.25 |
Common stock, shares authorized (in shares) | 80,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 37,845,224 | 37,802,352 |
Treasury stock, (in shares) | 4,120,475 | 2,802,019 |
Parent | ||
Common stock, par value (in dollars per share) | $ 1.25 | $ 1.25 |
Common stock, shares authorized (in shares) | 80,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 37,845,224 | 37,802,352 |
Treasury stock, (in shares) | 4,120,475 | 2,802,019 |
PARENT COMPANY FINANCIAL INFORMATION - INCOME STATEMENT (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income | |||||||||||
Total interest income | $ 58,022 | $ 57,152 | $ 56,797 | $ 57,194 | $ 50,104 | $ 46,473 | $ 46,009 | $ 44,888 | $ 229,165 | $ 187,474 | $ 168,913 |
Expense | |||||||||||
Interest expense | 15,612 | 14,742 | 13,686 | 13,061 | 11,798 | 11,513 | 10,585 | 9,608 | 57,101 | 43,504 | 29,348 |
Income tax benefit | (2,521) | (2,192) | (3,360) | (2,090) | (5,870) | (3,890) | (3,353) | (3,008) | (10,163) | (16,121) | (10,325) |
Net income | $ 17,381 | $ 20,303 | $ 20,203 | $ 16,251 | $ 10,331 | $ 14,511 | $ 14,481 | $ 14,989 | 74,138 | 54,312 | 49,349 |
Parent | |||||||||||
Income | |||||||||||
Dividends from subsidiary | 90,000 | 27,000 | 30,000 | ||||||||
Interest income | 78 | 60 | 51 | ||||||||
Total interest income | 90,078 | 27,060 | 30,051 | ||||||||
Expense | |||||||||||
Interest expense | 8,269 | 7,646 | 3,334 | ||||||||
Other | 3,662 | 5,869 | 3,227 | ||||||||
Total expense | 11,931 | 13,515 | 6,561 | ||||||||
Income before income tax expense | 78,147 | 13,545 | 23,490 | ||||||||
Income tax benefit | 2,489 | 4,242 | 2,278 | ||||||||
Income before equity in undistributed earnings of subsidiaries | 80,636 | 17,787 | 25,768 | ||||||||
Equity in undistributed earnings of subsidiaries | (6,498) | 36,525 | 23,581 | ||||||||
Net income | $ 74,138 | $ 54,312 | $ 49,349 |
PARENT COMPANY FINANCIAL INFORMATION - CASH FLOWS (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
OPERATING ACTIVITIES: | |||||||||||
Net Income | $ 17,381 | $ 20,303 | $ 20,203 | $ 16,251 | $ 10,331 | $ 14,511 | $ 14,481 | $ 14,989 | $ 74,138 | $ 54,312 | $ 49,349 |
Adjustments to reconcile net income to net cash provided by operations: | |||||||||||
Decrease (increase) in other assets | (2,166) | (3,909) | 1,823 | ||||||||
Increase (decrease) in other liabilities | 1,358 | (1,063) | 3,520 | ||||||||
Net cash provided by operating activities | 122,402 | 91,730 | 86,725 | ||||||||
INVESTING ACTIVITIES: | |||||||||||
Net cash provided by (used in) investing activities | 261,904 | 172,737 | (384,404) | ||||||||
FINANCING ACTIVITIES: | |||||||||||
Net proceeds from issuance of subordinated long-term debt | 0 | 0 | 98,060 | ||||||||
Purchase of common stock | (47,193) | 0 | (10,199) | ||||||||
Proceeds from issuance of common stock | 0 | 0 | 75,992 | ||||||||
Cash dividends paid | (41,979) | (32,199) | (25,963) | ||||||||
Net cash (used in) provided by financing activities | (462,279) | (235,429) | 386,358 | ||||||||
Net increase (decrease) in cash and cash equivalents | (77,973) | 29,038 | 88,679 | ||||||||
Cash and cash equivalents at beginning of period | 198,692 | 169,654 | 198,692 | 169,654 | 80,975 | ||||||
Cash and cash equivalents at end of period | 120,719 | 198,692 | 120,719 | 198,692 | 169,654 | ||||||
Parent | |||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net Income | 74,138 | 54,312 | 49,349 | ||||||||
Adjustments to reconcile net income to net cash provided by operations: | |||||||||||
Amortization | 164 | 153 | 45 | ||||||||
Equity in undistributed earnings of subsidiaries | 6,498 | (36,525) | (23,581) | ||||||||
Decrease (increase) in other assets | 6,060 | (2,113) | (1,035) | ||||||||
Increase (decrease) in other liabilities | 1,377 | (155) | 1,564 | ||||||||
Net cash provided by operating activities | 88,237 | 15,672 | 26,342 | ||||||||
INVESTING ACTIVITIES: | |||||||||||
Investment in subsidiaries | 0 | 890 | (126,000) | ||||||||
Net cash paid in acquisition | 0 | (22,801) | 0 | ||||||||
Net cash provided by (used in) investing activities | 0 | (21,911) | (126,000) | ||||||||
FINANCING ACTIVITIES: | |||||||||||
Net proceeds from issuance of subordinated long-term debt | 0 | 0 | 98,060 | ||||||||
Purchase of common stock | (47,193) | 0 | (10,199) | ||||||||
Proceeds from issuance of common stock | 3,883 | 3,953 | 78,962 | ||||||||
Cash dividends paid | (41,979) | (32,199) | (25,963) | ||||||||
Net cash (used in) provided by financing activities | (85,289) | (28,246) | 140,860 | ||||||||
Net increase (decrease) in cash and cash equivalents | 2,948 | (34,485) | 41,202 | ||||||||
Cash and cash equivalents at beginning of period | $ 8,483 | $ 42,968 | 8,483 | 42,968 | 1,766 | ||||||
Cash and cash equivalents at end of period | $ 11,431 | $ 8,483 | $ 11,431 | $ 8,483 | $ 42,968 |
QUARTERLY FINANCIAL INFORMATION OF REGISTRANT (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Interest income | $ 58,022 | $ 57,152 | $ 56,797 | $ 57,194 | $ 50,104 | $ 46,473 | $ 46,009 | $ 44,888 | $ 229,165 | $ 187,474 | $ 168,913 | |||||
Interest expense | 15,612 | 14,742 | 13,686 | 13,061 | 11,798 | 11,513 | 10,585 | 9,608 | 57,101 | 43,504 | 29,348 | |||||
Net interest income | 42,410 | 42,410 | 43,111 | 44,133 | 38,306 | 34,960 | 35,424 | 35,280 | 172,064 | 143,970 | 139,565 | |||||
Provision for loan losses | 2,446 | 975 | 1,281 | 3,735 | 1,271 | 960 | 1,346 | 1,098 | 8,437 | [1] | 4,675 | [1] | 9,780 | [1] | ||
Net gain (loss) on sale of securities available for sale | 61 | (741) | (332) | (827) | (249) | 627 | (75) | 322 | (1,839) | 625 | 2,836 | |||||
Noninterest income excluding net gain (loss) on sale of securities | 10,073 | 10,763 | 11,339 | 10,437 | 9,348 | 8,781 | 9,368 | 9,351 | 40,773 | 37,473 | 39,411 | |||||
Noninterest expense | 30,196 | 28,962 | 29,274 | 31,667 | 29,933 | 25,007 | 25,537 | 25,858 | 120,099 | 106,335 | 109,522 | |||||
Income before income tax expense | 19,902 | 22,495 | 23,563 | 18,341 | 16,201 | 18,401 | 17,834 | 17,997 | 84,301 | 70,433 | 59,674 | |||||
Income tax expense | 2,521 | 2,192 | 3,360 | 2,090 | 5,870 | 3,890 | 3,353 | 3,008 | 10,163 | 16,121 | 10,325 | |||||
Net income | $ 17,381 | $ 20,303 | $ 20,203 | $ 16,251 | $ 10,331 | $ 14,511 | $ 14,481 | $ 14,989 | $ 74,138 | $ 54,312 | $ 49,349 | |||||
Earnings (loss) per common share | ||||||||||||||||
Earnings (loss) per common share - basic (in dollars per share) | $ 0.50 | $ 0.58 | $ 0.58 | $ 0.46 | $ 0.33 | $ 0.49 | $ 0.49 | $ 0.51 | $ 2.12 | $ 1.82 | $ 1.82 | |||||
Earnings (loss) per common share - diluted (in dollars per share) | 0.50 | 0.58 | 0.57 | 0.46 | 0.33 | 0.49 | 0.49 | 0.51 | 2.11 | 1.81 | 1.81 | |||||
Dividends paid on common stock (in dollars per share) | $ 0.32 | $ 0.3 | $ 0.3 | $ 0.28 | $ 0.3 | $ 0.28 | $ 0.28 | $ 0.25 | $ 1.20 | $ 1.11 | $ 1.01 | |||||
|
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