ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
VIRGINIA | 54-1598552 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Name of exchange on which registered | |
Common Stock, par value $1.33 per share | The NASDAQ Global Select Market |
Large accelerated filer | ý | Accelerated filer | ¨ |
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Emerging growth company | ¨ |
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Glossary of Acronyms and Defined Terms | ||
Access | – | Access National Corporation and its subsidiaries |
AFS | – | Available for sale |
ALCO | – | Asset Liability Committee |
ALL | – | Allowance for loan losses |
AOCI | – | Accumulated other comprehensive income (loss) |
ASC | – | Accounting Standards Codification |
ASU | – | Accounting Standards Update |
ATM | – | Automated teller machine |
the Bank | – | Union Bank & Trust |
BHCA | – | Bank Holding Company Act of 1956 |
BOLI | – | Bank-owned life insurance |
bps | – | Basis points |
CAMELS | – | International rating system bank supervisory authorities use to rate financial institutions. |
CDARS | – | Certificates of Deposit Account Registry Service |
CECL | – | Current expected credit losses |
CFPB | – | Consumer Financial Protection Bureau |
Code | – | Internal Revenue Code of 1986 |
the Company | – | Union Bankshares Corporation and its subsidiaries |
CRA | – | Community Reinvestment Act of 1977 |
DHFB | – | Dixon, Hubard, Feinour & Brown, Inc. |
DIF | – | Deposit Insurance Fund |
Dodd-Frank Act | – | Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 |
EGRRCPA | – | Economic Growth, Regulatory Relief, and Consumer Protection Act |
EPS | – | Earnings per share |
ESOP | – | Employee Stock Ownership Plan |
Exchange Act | – | Securities Exchange Act of 1934, as amended |
FASB | – | Financial Accounting Standards Board |
FDIA | – | Federal Deposit Insurance Act |
FDIC | – | Federal Deposit Insurance Corporation |
FDICIA | – | Federal Deposit Insurance Corporation Improvement Act |
Federal Reserve Act | – | Federal Reserve Act of 1913, as amended |
Federal Reserve Bank | – | Federal Reserve Bank of Richmond |
FHLB | – | Federal Home Loan Bank of Atlanta |
FICO | – | Financing Corporation |
FMB | – | First Market Bank, FSB |
FRB or Federal Reserve | – | Board of Governors of the Federal Reserve System |
FTE | – | Fully taxable equivalent |
GAAP or U.S. GAAP | – | Accounting principles generally accepted in the United States |
HELOC | – | Home equity line of credit |
HTM | – | Held to maturity |
IDC | – | Interactive Data Corporation |
LIBOR | – | London Interbank Offered Rate |
NOL | – | Net operating losses |
NPA | – | Nonperforming assets |
OCI | – | Other comprehensive income |
OAL | – | Outfitter Advisors, Ltd. |
ODCM | – | Old Dominion Capital Management, Inc. |
OFAC | – | Office of Foreign Assets Control |
OREO | – | Other real estate owned |
OTTI | – | Other than temporary impairment |
PCA | – | Prompt Corrective Action |
PCI | – | Purchased credit impaired |
PSU | – | Performance stock units |
REVG | – | Real Estate Valuation Group |
ROA | – | Return on average assets |
ROE | – | Return on average common equity |
ROTCE | – | Return on average tangible common equity |
SAB | – | Staff Accounting Bulletin |
SCC | – | Virginia State Corporation Commission |
SEC | – | U.S. Securities and Exchange Commission |
Securities Act | – | Securities Act of 1933, as amended |
Shore Premier | – | Shore Premier Finance |
Shore Premier sale | – | The sale of substantially all of the assets and certain liabilities of Shore Premier |
Tax Act | – | Tax Cuts and Jobs Act of 2017 |
TFSB | – | The Federal Savings Bank |
TDR | – | Troubled debt restructuring |
Treasury | – | U.S. Department of the Treasury |
UIG | – | Union Insurance Group, LLC |
UISI | – | Union Investment Services, Inc. |
UMG | – | Union Mortgage Group, Inc. |
VFG | – | Virginia Financial Group, Inc. |
Xenith | – | Xenith Bankshares, Inc. |
• | changes in interest rates, |
• | general economic and financial market conditions in the United States generally and particularly in the markets in which the Company operates and which its loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels, slowdowns in economic growth and any prolonged government shutdown, |
• | the Company’s ability to manage its growth or implement its growth strategy, |
• | the possibility that any of the anticipated benefits of the merger of Access with and into the Company on February 1, 2019 (the "Merger”) will not be realized or will not be realized within the expected time period, the businesses of the Company and Access may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected, the expected revenue synergies and cost savings from the Merger may not be fully realized or realized within the expected time frame, revenues following the Merger may be lower than expected, or customer and employee relationships and business operations may be disrupted by the Merger, |
• | the Company’s ability to recruit and retain key employees, |
• | the incremental cost and/or decreased revenues associated with exceeding $10 billion in assets, |
• | real estate values in the Bank's lending area. |
• | an insufficient ALL, |
• | the quality or composition of the loan or investment portfolios, |
• | concentrations of loans secured by real estate, particularly commercial real estate, |
• | the effectiveness of the Company’s credit processes and management of the Company’s credit risk, |
• | demand for loan products and financial services in the Company’s market area, |
• | the Company’s ability to compete in the market for financial services, |
• | technological risks and developments, and cyber-threats, attacks or events, |
• | performance by the Company’s counterparties or vendors, |
• | deposit flows, |
• | the availability of financing and the terms thereof, |
• | the level of prepayments on loans and mortgage-backed securities, |
• | legislative or regulatory changes and requirements, |
• | the impact of the Tax Act, including, but not limited to, the effect of the lower corporate tax rate, including on the valuation of the Company’s tax assets and liabilities; |
• | changes in the effect of the Tax Act due to issuance of interpretive regulatory guidance or enactment of corrective or supplement legislation, |
• | monetary and fiscal policies of the U.S. government including policies of the U.S. Department of the Treasury and the Board of Governors of the Federal Reserve System, |
• | changes to applicable accounting principles and guidelines, and |
• | other factors, many of which are beyond the control of the Company. |
Community Bank | |
Union Bank & Trust | Richmond, Virginia |
Financial Services Affiliates | |
Capital Fiduciary Advisors, L.L.C | Reston, Virginia |
Dixon, Hubard, Feinour & Brown, Inc. | Roanoke, Virginia |
Middleburg Investment Services, LLC | Reston, Virginia |
Middleburg Trust Company | Richmond, Virginia |
Old Dominion Capital Management, Inc. | Charlottesville, Virginia |
Outfitter Advisors, Ltd. | McLean, Virginia |
Union Insurance Group, LLC | Richmond, Virginia |
Formed | Acquired | Merged | |||
Union Bank & Trust Company | 1902 | n/a | 2010 | ||
Northern Neck State Bank | 1909 | 1993 | 2010 | ||
King George State Bank | 1974 | 1996 | 1999 | ||
Rappahannock National Bank | 1902 | 1998 | 2010 | ||
Bay Community Bank | 1999 | de novo bank | 2008 | ||
Guaranty Bank | 1981 | 2004 | 2004 | ||
Prosperity Bank & Trust Company | 1986 | 2006 | 2008 | ||
First Market Bank, FSB | 2000 | 2010 | 2010 | ||
StellarOne Bank | 1994 | 2014 | 2014 | ||
Xenith Bank | 1987 | 2018 | 2018 | ||
Access National Bank | 1999 | 2019 | 2019 |
Period Ended | |||||||||||||||||||||||
Index | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | 12/31/2017 | 12/31/2018 | |||||||||||||||||
Union Bankshares Corporation | $ | 100.00 | $ | 99.41 | $ | 107.26 | $ | 156.52 | $ | 162.28 | $ | 129.61 | |||||||||||
NASDAQ Composite | 100.00 | 114.75 | 122.74 | 133.62 | 173.22 | 168.30 | |||||||||||||||||
SNL U.S. Bank NASDAQ | 100.00 | 103.57 | 111.80 | 155.02 | 163.20 | 137.56 |
2018 | 2017 | 2016 | 2015 | 2014 (1) | |||||||||||||||
Results of Operations | |||||||||||||||||||
Interest and dividend income | $ | 528,788 | $ | 329,044 | $ | 293,736 | $ | 275,387 | $ | 273,140 | |||||||||
Interest expense | 102,097 | 50,037 | 29,770 | 24,937 | 19,927 | ||||||||||||||
Net interest income | 426,691 | 279,007 | 263,966 | 250,450 | 253,213 | ||||||||||||||
Provision for credit losses | 13,736 | 10,802 | 8,883 | 9,450 | 7,800 | ||||||||||||||
Net interest income after provision for credit losses | 412,955 | 268,205 | 255,083 | 241,000 | 245,413 | ||||||||||||||
Noninterest income | 104,241 | 62,429 | 59,849 | 54,993 | 51,220 | ||||||||||||||
Noninterest expenses | 337,767 | 225,668 | 213,090 | 206,310 | 222,419 | ||||||||||||||
Income before income taxes | 179,429 | 104,966 | 101,842 | 89,683 | 74,214 | ||||||||||||||
Income tax expense | 30,016 | 32,790 | 25,944 | 23,071 | 19,533 | ||||||||||||||
Income from continuing operations | 149,413 | 72,176 | 75,898 | 66,612 | 54,681 | ||||||||||||||
Discontinued operations, net of tax | (3,165 | ) | 747 | 1,578 | 467 | (2,517 | ) | ||||||||||||
Net income (2) | $ | 146,248 | $ | 72,923 | $ | 77,476 | $ | 67,079 | $ | 52,164 | |||||||||
Financial Condition | |||||||||||||||||||
Assets | $ | 13,765,599 | $ | 9,315,179 | $ | 8,426,793 | $ | 7,693,291 | $ | 7,358,643 | |||||||||
Securities available for sale, at fair value | 1,774,821 | 974,222 | 946,764 | 903,292 | 1,102,114 | ||||||||||||||
Securities held to maturity, at carrying value | 492,272 | 199,639 | 201,526 | 205,374 | — | ||||||||||||||
Loans held for investment, net of deferred fees and costs | 9,716,207 | 7,141,552 | 6,307,060 | 5,671,462 | 5,345,996 | ||||||||||||||
Allowance for loan losses | 41,045 | 38,208 | 37,192 | 34,047 | 32,384 | ||||||||||||||
Intangible assets, net | 775,853 | 313,331 | 318,793 | 316,832 | 325,277 | ||||||||||||||
Tangible assets, net (3) | 12,989,746 | 9,001,848 | 8,108,000 | 7,376,459 | 7,033,366 | ||||||||||||||
Deposits | 9,970,960 | 6,991,718 | 6,379,489 | 5,963,936 | 5,638,770 | ||||||||||||||
Total borrowings | 1,756,278 | 1,219,414 | 990,089 | 680,175 | 686,935 | ||||||||||||||
Total liabilities | 11,841,018 | 8,268,850 | 7,425,761 | 6,697,924 | 6,381,474 | ||||||||||||||
Common stockholders' equity | 1,924,581 | 1,046,329 | 1,001,032 | 995,367 | 977,169 | ||||||||||||||
Tangible common stockholders' equity (3) | 1,148,728 | 732,998 | 682,239 | 678,535 | 651,892 | ||||||||||||||
Ratios | |||||||||||||||||||
Net interest margin (2) | 3.67 | % | 3.48 | % | 3.64 | % | 3.73 | % | 3.93 | % | |||||||||
Net interest margin (FTE) (3) | 3.74 | % | 3.63 | % | 3.80 | % | 3.89 | % | 4.09 | % | |||||||||
Return on average assets (2) | 1.11 | % | 0.83 | % | 0.96 | % | 0.90 | % | 0.72 | % | |||||||||
Return on average common stockholders' equity (2) | 7.85 | % | 7.07 | % | 7.79 | % | 6.76 | % | 5.30 | % | |||||||||
Return on average tangible common stockholders' equity (2)(3) | 14.40 | % | 10.75 | % | 12.14 | % | 10.81 | % | 9.00 | % | |||||||||
Efficiency ratio (2) | 63.62 | % | 66.09 | % | 65.81 | % | 67.54 | % | 73.06 | % | |||||||||
CET1 capital (to risk weighted assets) | 9.93 | % | 9.04 | % | 9.72 | % | 10.55 | % | 11.20 | % | |||||||||
Tier 1 capital (to risk weighted assets) | 11.10 | % | 10.14 | % | 10.97 | % | 11.93 | % | 12.76 | % | |||||||||
Total capital (to risk weighted assets) | 12.88 | % | 12.43 | % | 13.56 | % | 12.46 | % | 13.38 | % | |||||||||
Leverage Ratio | 9.71 | % | 9.42 | % | 9.87 | % | 10.68 | % | 10.62 | % | |||||||||
Common equity to total assets | 13.98 | % | 11.23 | % | 11.88 | % | 12.94 | % | 13.28 | % | |||||||||
Tangible common equity / tangible assets (3) | 8.84 | % | 8.14 | % | 8.41 | % | 9.20 | % | 9.27 | % |
2018 | 2017 | 2016 | 2015 | 2014 (1) | |||||||||||||||
Asset Quality | |||||||||||||||||||
Allowance for loan losses | $ | 41,045 | $ | 38,208 | $ | 37,192 | $ | 34,047 | $ | 32,384 | |||||||||
Nonaccrual loans | $ | 26,953 | $ | 21,743 | $ | 9,973 | $ | 11,936 | $ | 19,255 | |||||||||
Foreclosed property | $ | 6,722 | $ | 5,253 | $ | 7,430 | $ | 11,994 | $ | 23,058 | |||||||||
ALL / total outstanding loans | 0.42 | % | 0.54 | % | 0.59 | % | 0.60 | % | 0.61 | % | |||||||||
Nonaccrual loans/total loans | 0.28 | % | 0.30 | % | 0.16 | % | 0.21 | % | 0.36 | % | |||||||||
ALL / nonaccrual loans | 152.28 | % | 175.73 | % | 372.93 | % | 285.25 | % | 168.18 | % | |||||||||
NPAs / total outstanding loans | 0.35 | % | 0.38 | % | 0.28 | % | 0.42 | % | 0.79 | % | |||||||||
Net charge-offs / total average loans | 0.12 | % | 0.15 | % | 0.09 | % | 0.14 | % | 0.11 | % | |||||||||
Provision / total average loans | 0.15 | % | 0.17 | % | 0.15 | % | 0.17 | % | 0.15 | % | |||||||||
Per Share Data | |||||||||||||||||||
Earnings per share, basic | $ | 2.22 | $ | 1.67 | $ | 1.77 | $ | 1.49 | $ | 1.13 | |||||||||
Earnings per share, diluted (2) | 2.22 | 1.67 | 1.77 | 1.49 | 1.13 | ||||||||||||||
Cash dividends paid per share | 0.88 | 0.81 | 0.77 | 0.68 | 0.58 | ||||||||||||||
Market value per share | 28.23 | 36.17 | 35.74 | 25.24 | 24.08 | ||||||||||||||
Book value per share | 29.34 | 24.10 | 23.15 | 22.38 | 21.73 | ||||||||||||||
Tangible book value per share (3) | 17.51 | 16.88 | 15.78 | 15.25 | 14.50 | ||||||||||||||
Dividend payout ratio | 39.64 | % | 48.50 | % | 43.50 | % | 45.64 | % | 51.33 | % | |||||||||
Weighted average shares outstanding, basic | 65,859,166 | 43,698,897 | 43,784,193 | 45,054,938 | 46,036,023 | ||||||||||||||
Weighted average shares outstanding, diluted | 65,908,573 | 43,779,744 | 43,890,271 | 45,138,891 | 46,130,895 |
QUALITATIVE FACTORS | ||||
Portfolio | National / International | Local | ||
Experience and ability of lending team | Interest rates | Gross state product | ||
Pace of loan growth | Inflation | Unemployment rate | ||
Footprint and expansion | Unemployment | Home prices | ||
Execution of loan risk rating process | Level of economic activity | CRE Prices | ||
Degree of credit oversight | Political and trade uncertainty | |||
Underwriting standards | Asset prices | |||
Delinquency levels in portfolio | ||||
Charge-off trends in portfolio | ||||
Credit concentrations / nature and volume of the portfolio |
• | The Company reported net income of $146.2 million and earnings per share of $2.22 for the year ended December 31, 2018 compared to net income of $72.9 million and earnings per share of $1.67 for the year ended December 31, 2017. |
• | The Company's net operating earnings(1) were $178.3 million and operating earnings per share(1) were $2.71 for 2018 compared to net operating earnings(1) of $83.6 million and operating earnings per share(1) of $1.91 for 2017. |
• | ROA was 1.11% for 2018 compared to 0.83% for 2017; operating ROA(1) was 1.35% for 2018 compared to 0.95% for 2017. |
• | ROE was 7.85% for 2018 compared to 7.07% for 2017; operating ROE(1) was 9.57% for 2018 compared to 8.11% for 2017. |
• | ROTCE(1) was 14.40% for 2018 compared to 10.75% for 2017; operating ROTCE(1) was 17.35% for 2018 compared to 12.24% for 2017. |
• | Loans held for investment from continuing operations, net of deferred fees and costs, were $9.7 billion at December 31, 2018, an increase of $2.6 billion from December 31, 2017. The increase was primarily a result of the Xenith acquisition. |
• | Total deposits from continuing operations at December 31, 2018 were $10.0 billion, an increase of $3.0 billion from December 31, 2017. The increase was primarily a result of the Xenith acquisition. |
• | Cash dividends per common share increased to $0.88 during 2018 from $0.81 per common share during 2017. |
• | The Company acquired Access on February 1, 2019. The 2018 results included herein are prior to the effective date of the Merger. |
For the Year Ended December 31, | |||||||||||||
2018 | 2017 | Change | |||||||||||
(Dollars in thousands) | |||||||||||||
Average interest-earning assets | $ | 11,620,893 | $ | 8,016,311 | $ | 3,604,582 | |||||||
Interest income | $ | 528,788 | $ | 329,044 | $ | 199,744 | |||||||
Interest income (FTE) (1) | $ | 536,981 | $ | 340,810 | $ | 196,171 | |||||||
Yield on interest-earning assets | 4.55 | % | 4.10 | % | 45 | bps | |||||||
Yield on interest-earning assets (FTE) (1) | 4.62 | % | 4.25 | % | 37 | bps | |||||||
Average interest-bearing liabilities | $ | 9,106,716 | $ | 6,262,536 | $ | 2,844,180 | |||||||
Interest expense | $ | 102,097 | $ | 50,037 | $ | 52,060 | |||||||
Cost of interest-bearing liabilities | 1.12 | % | 0.80 | % | 32 | bps | |||||||
Cost of funds | 0.88 | % | 0.62 | % | 26 | bps | |||||||
Net interest income | $ | 426,691 | $ | 279,007 | $ | 147,684 | |||||||
Net interest income (FTE) (1) | $ | 434,884 | $ | 290,773 | $ | 144,111 | |||||||
Net interest margin | 3.67 | % | 3.48 | % | 19 | bps | |||||||
Net interest margin (FTE) (1) | 3.74 | % | 3.63 | % | 11 | bps |
For the Year Ended December 31, | |||||||||||||
2017 | 2016 | Change | |||||||||||
(Dollars in thousands) | |||||||||||||
Average interest-earning assets | $ | 8,016,311 | $ | 7,249,090 | $ | 767,221 | |||||||
Interest income | $ | 329,044 | $ | 293,736 | $ | 35,308 | |||||||
Interest income (FTE) (1) | $ | 340,810 | $ | 305,164 | $ | 35,646 | |||||||
Yield on interest-earning assets | 4.10 | % | 4.05 | % | 5 | bps | |||||||
Yield on interest-earning assets (FTE) (1) | 4.25 | % | 4.21 | % | 4 | bps | |||||||
Average interest-bearing liabilities | $ | 6,262,536 | $ | 5,600,174 | $ | 662,362 | |||||||
Interest expense | $ | 50,037 | $ | 29,770 | $ | 20,267 | |||||||
Cost of interest-bearing liabilities | 0.80 | % | 0.53 | % | 27 | bps | |||||||
Cost of funds | 0.62 | % | 0.41 | % | 21 | bps | |||||||
Net interest income | $ | 279,007 | $ | 263,966 | $ | 15,041 | |||||||
Net interest income (FTE) (1) | $ | 290,773 | $ | 275,394 | $ | 15,379 | |||||||
Net interest margin | 3.48 | % | 3.64 | % | (16 | ) | bps | ||||||
Net interest margin (FTE) (1) | 3.63 | % | 3.80 | % | (17 | ) | bps |
For the Year Ended December 31, | ||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||
Average Balance | Interest Income / Expense (1) | Yield / Rate (1)(2) | Average Balance | Interest Income / Expense (1) | Yield / Rate (1)(2) | Average Balance | Interest Income / Expense (1) | Yield / Rate (1)(2) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Securities: | ||||||||||||||||||||||||||||||||
Taxable | $ | 1,229,038 | $ | 36,851 | 3.00 | % | $ | 761,994 | $ | 20,305 | 2.66 | % | $ | 754,287 | $ | 18,319 | 2.43 | % | ||||||||||||||
Tax-exempt | 647,980 | 25,262 | 3.90 | % | 468,111 | 21,852 | 4.67 | % | 448,405 | 21,216 | 4.73 | % | ||||||||||||||||||||
Total securities | 1,877,018 | 62,113 | 3.31 | % | 1,230,105 | 42,157 | 3.43 | % | 1,202,692 | 39,535 | 3.29 | % | ||||||||||||||||||||
Loans, net (3) (4) | 9,584,785 | 471,768 | 4.92 | % | 6,701,101 | 296,958 | 4.43 | % | 5,956,125 | 264,197 | 4.44 | % | ||||||||||||||||||||
Other earning assets | 159,090 | 3,100 | 1.95 | % | 85,105 | 1,695 | 1.99 | % | 90,273 | 1,432 | 1.59 | % | ||||||||||||||||||||
Total earning assets | 11,620,893 | $ | 536,981 | 4.62 | % | 8,016,311 | $ | 340,810 | 4.25 | % | 7,249,090 | $ | 305,164 | 4.21 | % | |||||||||||||||||
Allowance for loan losses | (41,218 | ) | (38,014 | ) | (36,034 | ) | ||||||||||||||||||||||||||
Total non-earning assets | 1,601,934 | 841,845 | 833,249 | |||||||||||||||||||||||||||||
Total assets | $ | 13,181,609 | $ | 8,820,142 | $ | 8,046,305 | ||||||||||||||||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||
Transaction and money market accounts | $ | 4,898,764 | $ | 32,222 | 0.66 | % | $ | 3,396,552 | $ | 11,892 | 0.35 | % | $ | 2,952,625 | $ | 6,327 | 0.21 | % | ||||||||||||||
Regular savings | 640,337 | 847 | 0.13 | % | 565,901 | 643 | 0.11 | % | 592,215 | 850 | 0.14 | % | ||||||||||||||||||||
Time deposits (5) | 2,078,073 | 26,267 | 1.26 | % | 1,271,649 | 13,571 | 1.07 | % | 1,177,732 | 10,554 | 0.90 | % | ||||||||||||||||||||
Total interest-bearing deposits | 7,617,174 | 59,336 | 0.78 | % | 5,234,102 | 26,106 | 0.50 | % | 4,722,572 | 17,731 | 0.38 | % | ||||||||||||||||||||
Other borrowings (6) | 1,489,542 | 42,761 | 2.87 | % | 1,028,434 | 23,931 | 2.33 | % | 877,602 | 12,039 | 1.37 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 9,106,716 | $ | 102,097 | 1.12 | % | 6,262,536 | $ | 50,037 | 0.80 | % | 5,600,174 | $ | 29,770 | 0.53 | % | |||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Demand deposits | 2,100,489 | 1,467,373 | 1,388,216 | |||||||||||||||||||||||||||||
Other liabilities | 111,189 | 59,386 | 63,130 | |||||||||||||||||||||||||||||
Total liabilities | 11,318,394 | 7,789,295 | 7,051,520 | |||||||||||||||||||||||||||||
Stockholders' equity | 1,863,215 | 1,030,847 | 994,785 | |||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 13,181,609 | $ | 8,820,142 | $ | 8,046,305 | ||||||||||||||||||||||||||
Net interest income | $434,884 | $290,773 | $275,394 | |||||||||||||||||||||||||||||
Interest rate spread | 3.50 | % | 3.45 | % | 3.68 | % | ||||||||||||||||||||||||||
Cost of funds | 0.88 | % | 0.62 | % | 0.41 | % | ||||||||||||||||||||||||||
Net interest margin | 3.74 | % | 3.63 | % | 3.80 | % |
2018 vs. 2017 Increase (Decrease) Due to Change in: | 2017 vs. 2016 Increase (Decrease) Due to Change in: | ||||||||||||||||||||||
Volume | Rate | Total | Volume | Rate | Total | ||||||||||||||||||
Earning Assets: | |||||||||||||||||||||||
Securities: | |||||||||||||||||||||||
Taxable | $ | 13,740 | $ | 2,806 | $ | 16,546 | $ | 189 | $ | 1,797 | $ | 1,986 | |||||||||||
Tax-exempt | 7,428 | (4,018 | ) | 3,410 | 923 | (287 | ) | 636 | |||||||||||||||
Total securities | 21,168 | (1,212 | ) | 19,956 | 1,112 | 1,510 | 2,622 | ||||||||||||||||
Loans, net (1) | 139,042 | 35,768 | 174,810 | 33,014 | (253 | ) | 32,761 | ||||||||||||||||
Other earning assets | 1,443 | (38 | ) | 1,405 | (86 | ) | 349 | 263 | |||||||||||||||
Total earning assets | $ | 161,653 | $ | 34,518 | $ | 196,171 | $ | 34,040 | $ | 1,606 | $ | 35,646 | |||||||||||
Interest-Bearing Liabilities: | |||||||||||||||||||||||
Interest-Bearing Deposits: | |||||||||||||||||||||||
Transaction and money market accounts | $ | 6,808 | $ | 13,522 | $ | 20,330 | $ | 1,067 | $ | 4,498 | $ | 5,565 | |||||||||||
Regular savings | 90 | 114 | 204 | (36 | ) | (171 | ) | (207 | ) | ||||||||||||||
Time deposits (2) | 9,835 | 2,861 | 12,696 | 889 | 2,128 | 3,017 | |||||||||||||||||
Total interest-bearing deposits | 16,733 | 16,497 | 33,230 | 1,920 | 6,455 | 8,375 | |||||||||||||||||
Other borrowings (3) | 12,378 | 6,452 | 18,830 | 2,354 | 9,538 | 11,892 | |||||||||||||||||
Total interest-bearing liabilities | 29,111 | 22,949 | 52,060 | 4,274 | 15,993 | 20,267 | |||||||||||||||||
Change in net interest income | $ | 132,542 | $ | 11,569 | $ | 144,111 | $ | 29,766 | $ | (14,387 | ) | $ | 15,379 |
Loans Accretion | Deposit Accretion | Borrowings Accretion (Amortization) | Total | ||||||||||||
For the year ended December 31, 2016 | $ | 5,218 | $ | — | $ | 458 | $ | 5,676 | |||||||
For the year ended December 31, 2017 | 6,784 | — | 170 | 6,954 | |||||||||||
For the year ended December 31, 2018 | 17,145 | 2,553 | (506 | ) | 19,192 | ||||||||||
For the years ending (estimated) (1): | |||||||||||||||
2019 | 10,538 | 1,170 | (660 | ) | 11,048 | ||||||||||
2020 | 8,130 | 284 | (734 | ) | 7,680 | ||||||||||
2021 | 6,614 | 108 | (805 | ) | 5,917 | ||||||||||
2022 | 4,984 | 21 | (827 | ) | 4,178 | ||||||||||
2023 | 2,996 | — | (850 | ) | 2,146 | ||||||||||
Thereafter | 10,550 | — | (11,633 | ) | (1,083 | ) |
For the Year Ended December 31, | Change | |||||||||||||
2018 | 2017 | $ | % | |||||||||||
(Dollars in thousands) | ||||||||||||||
Noninterest income: | ||||||||||||||
Service charges on deposit accounts | $ | 25,439 | $ | 18,850 | $ | 6,589 | 35.0 | % | ||||||
Other service charges, commissions and fees | 5,603 | 4,593 | 1,010 | 22.0 | % | |||||||||
Interchange fees, net | 18,803 | 14,974 | 3,829 | 25.6 | % | |||||||||
Fiduciary and asset management fees | 16,150 | 11,245 | 4,905 | 43.6 | % | |||||||||
Gains (losses) on securities transactions, net | 383 | 800 | (417 | ) | (52.1 | )% | ||||||||
Bank owned life insurance income | 7,198 | 6,144 | 1,054 | 17.2 | % | |||||||||
Loan-related interest rate swap fees | 3,554 | 3,051 | 503 | 16.5 | % | |||||||||
Gain on Shore Premier sale | 19,966 | — | 19,966 | — | % | |||||||||
Other operating income | 7,145 | 2,772 | 4,373 | 157.8 | % | |||||||||
Total noninterest income | $ | 104,241 | $ | 62,429 | $ | 41,812 | 67.0 | % |
For the Year Ended December 31, | Change | |||||||||||||
2017 | 2016 | $ | % | |||||||||||
(Dollars in thousands) | ||||||||||||||
Noninterest income: | ||||||||||||||
Service charges on deposit accounts | $ | 18,850 | $ | 18,168 | $ | 682 | 3.8 | % | ||||||
Other service charges, commissions and fees | 4,593 | 4,445 | 148 | 3.3 | % | |||||||||
Interchange fees, net | 14,974 | 14,058 | 916 | 6.5 | % | |||||||||
Fiduciary and asset management fees | 11,245 | 10,199 | 1,046 | 10.3 | % | |||||||||
Gains (losses) on securities transactions, net | 800 | 205 | 595 | 290.2 | % | |||||||||
Bank owned life insurance income | 6,144 | 5,513 | 631 | 11.4 | % | |||||||||
Loan-related interest rate swap fees | 3,051 | 4,254 | (1,203 | ) | (28.3 | )% | ||||||||
Other operating income | 2,772 | 3,007 | (235 | ) | (7.8 | )% | ||||||||
Total noninterest income | $ | 62,429 | $ | 59,849 | $ | 2,580 | 4.3 | % |
For the Year Ended December 31, | Change | |||||||||||||
2018 | 2017 | $ | % | |||||||||||
(Dollars in thousands) | ||||||||||||||
Noninterest expense: | ||||||||||||||
Salaries and benefits | $ | 159,378 | $ | 115,968 | $ | 43,410 | 37.4 | % | ||||||
Occupancy expenses | 25,368 | 18,558 | 6,810 | 36.7 | % | |||||||||
Furniture and equipment expenses | 11,991 | 10,047 | 1,944 | 19.3 | % | |||||||||
Printing, postage, and supplies | 4,650 | 4,901 | (251 | ) | (5.1 | )% | ||||||||
Communications expense | 3,898 | 3,304 | 594 | 18.0 | % | |||||||||
Technology and data processing | 18,397 | 16,132 | 2,265 | 14.0 | % | |||||||||
Professional services | 10,283 | 7,767 | 2,516 | 32.4 | % | |||||||||
Marketing and advertising expense | 10,043 | 7,795 | 2,248 | 28.8 | % | |||||||||
FDIC assessment premiums and other insurance | 6,644 | 4,048 | 2,596 | 64.1 | % | |||||||||
Other taxes | 11,542 | 8,087 | 3,455 | 42.7 | % | |||||||||
Loan-related expenses | 7,206 | 4,733 | 2,473 | 52.3 | % | |||||||||
OREO and credit-related expenses | 4,131 | 3,764 | 367 | 9.8 | % | |||||||||
Amortization of intangible assets | 12,839 | 6,088 | 6,751 | 110.9 | % | |||||||||
Training and other personnel costs | 4,259 | 3,843 | 416 | 10.8 | % | |||||||||
Merger-related costs | 39,728 | 5,393 | 34,335 | NM | ||||||||||
Other expenses | 7,410 | 5,240 | 2,170 | 41.4 | % | |||||||||
Total noninterest expense | $ | 337,767 | $ | 225,668 | $ | 112,099 | 49.7 | % |
For the Year Ended December 31, | Change | |||||||||||||
2017 | 2016 | $ | % | |||||||||||
(Dollars in thousands) | ||||||||||||||
Noninterest expense: | ||||||||||||||
Salaries and benefits | $ | 115,968 | $ | 110,521 | $ | 5,447 | 4.9 | % | ||||||
Occupancy expenses | 18,558 | 18,502 | 56 | 0.3 | % | |||||||||
Furniture and equipment expenses | 10,047 | 9,814 | 233 | 2.4 | % | |||||||||
Printing, postage, and supplies | 4,901 | 4,610 | 291 | 6.3 | % | |||||||||
Communications expense | 3,304 | 3,744 | (440 | ) | (11.8 | )% | ||||||||
Technology and data processing | 16,132 | 15,032 | 1,100 | 7.3 | % | |||||||||
Professional services | 7,767 | 8,051 | (284 | ) | (3.5 | )% | ||||||||
Marketing and advertising expense | 7,795 | 7,756 | 39 | 0.5 | % | |||||||||
FDIC assessment premiums and other insurance | 4,048 | 5,406 | (1,358 | ) | (25.1 | )% | ||||||||
Other taxes | 8,087 | 5,448 | 2,639 | 48.4 | % | |||||||||
Loan-related expenses | 4,733 | 4,168 | 565 | 13.6 | % | |||||||||
OREO and credit-related expenses | 3,764 | 2,600 | 1,164 | 44.8 | % | |||||||||
Amortization of intangible assets | 6,088 | 7,210 | (1,122 | ) | (15.6 | )% | ||||||||
Training and other personnel costs | 3,843 | 3,359 | 484 | 14.4 | % | |||||||||
Merger-related expenses | 5,393 | — | 5,393 | — | % | |||||||||
Other expenses | 5,240 | 6,869 | (1,629 | ) | (23.7 | )% | ||||||||
Total noninterest expense | $ | 225,668 | $ | 213,090 | $ | 12,578 | 5.9 | % |
2018 | 2017 | ||||
Common equity Tier 1 capital ratio | 9.93 | % | 9.04 | % | |
Tier 1 capital ratio | 11.09 | % | 10.14 | % | |
Total capital ratio | 12.88 | % | 12.43 | % | |
Common equity to total assets | 13.98 | % | 11.23 | % | |
Tangible common equity to tangible assets (1) | 8.84 | % | 8.14 | % | |
(1) Refer to Item 7 section "Non-GAAP Measures" included within this item 7 |
December 31, 2018 | December 31, 2017 | ||||||
Available for Sale: | |||||||
Obligations of states and political subdivisions | $ | 468,491 | $ | 301,824 | |||
Corporate bonds | 167,696 | 113,880 | |||||
Mortgage-backed securities | 1,129,865 | 548,858 | |||||
Other securities | 8,769 | 9,660 | |||||
Total securities available for sale, at fair value | 1,774,821 | 974,222 | |||||
Held to Maturity: | |||||||
Obligations of states and political subdivisions, at carrying value | 492,272 | 199,639 | |||||
Restricted Stock: | |||||||
Federal Reserve Bank stock | 52,576 | 27,558 | |||||
FHLB stock | 72,026 | 47,725 | |||||
Total restricted stock, at cost | 124,602 | 75,283 | |||||
Total investments | $ | 2,391,695 | $ | 1,249,144 |
1 Year or Less | 1 - 5 Years | 5 - 10 Years | Over 10 Years | Total | |||||||||||||||
Mortgage backed securities: | |||||||||||||||||||
Amortized cost | $ | 29 | $ | 156,830 | $ | 91,347 | $ | 889,828 | $ | 1,138,034 | |||||||||
Fair value | $ | 29 | $ | 154,387 | $ | 89,433 | $ | 886,016 | $ | 1,129,865 | |||||||||
Weighted average yield (1) | 3.73 | 2.30 | 2.40 | 3.12 | 2.95 | ||||||||||||||
Obligations of states and political subdivisions: | |||||||||||||||||||
Amortized cost | $ | 16,355 | $ | 29,194 | $ | 42,994 | $ | 378,045 | $ | 466,588 | |||||||||
Fair value | $ | 16,491 | $ | 29,667 | $ | 43,527 | $ | 378,806 | $ | 468,491 | |||||||||
Weighted average yield (1) | 5.10 | 4.15 | 4.05 | 3.64 | 3.76 | ||||||||||||||
Corporate bonds and other securities: | |||||||||||||||||||
Amortized cost | $ | 6,269 | $ | 4,979 | $ | 83,870 | $ | 81,212 | $ | 176,330 | |||||||||
Fair value | $ | 6,269 | $ | 4,945 | $ | 84,344 | $ | 80,907 | $ | 176,465 | |||||||||
Weighted average yield (1) | 2.11 | 3.65 | 4.54 | 3.40 | 3.90 | ||||||||||||||
Total securities available for sale: | |||||||||||||||||||
Amortized cost | $ | 22,653 | $ | 191,003 | $ | 218,211 | $ | 1,349,085 | $ | 1,780,952 | |||||||||
Fair value | $ | 22,789 | $ | 188,999 | $ | 217,304 | $ | 1,345,729 | $ | 1,774,821 | |||||||||
Weighted average yield (1) | 4.27 | 2.62 | 3.55 | 3.28 | 3.26 |
1 Year or Less | 1 - 5 Years | 5 - 10 Years | Over 10 Years | Total | |||||||||||||||
Obligations of states and political subdivisions: | |||||||||||||||||||
Carrying Value | $ | — | $ | 3,893 | $ | 3,480 | $ | 484,899 | $ | 492,272 | |||||||||
Fair value | $ | — | $ | 3,900 | $ | 3,507 | $ | 492,094 | $ | 499,501 | |||||||||
Weighted average yield (1) | — | 2.31 | 2.64 | 4.12 | 4.09 |
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||||||
Construction and Land Development | $ | 1,194,821 | 12.3 | % | $ | 948,791 | 13.3 | % | $ | 751,131 | 11.9 | % | $ | 749,720 | 13.2 | % | $ | 656,380 | 12.3 | % | ||||||||||||||
Commercial Real Estate - Owner Occupied | 1,337,345 | 13.8 | % | 943,933 | 13.2 | % | 857,805 | 13.6 | % | 860,086 | 15.2 | % | 869,200 | 16.3 | % | |||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 2,467,410 | 25.4 | % | 1,713,659 | 24.0 | % | 1,564,295 | 24.8 | % | 1,270,480 | 22.3 | % | 1,183,514 | 22.0 | % | |||||||||||||||||||
Multifamily Real Estate | 548,231 | 5.6 | % | 357,079 | 5.0 | % | 334,276 | 5.3 | % | 322,528 | 5.7 | % | 297,366 | 5.6 | % | |||||||||||||||||||
Commercial & Industrial | 1,317,135 | 13.6 | % | 612,023 | 8.6 | % | 551,526 | 8.7 | % | 435,365 | 7.7 | % | 374,096 | 7.0 | % | |||||||||||||||||||
Residential 1-4 Family - Commercial | 713,750 | 7.3 | % | 612,395 | 8.6 | % | 551,636 | 8.7 | % | 517,063 | 9.2 | % | 508,503 | 9.5 | % | |||||||||||||||||||
Residential 1-4 Family - Mortgage | 600,578 | 6.2 | % | 485,690 | 6.8 | % | 477,911 | 7.6 | % | 461,406 | 8.1 | % | 474,571 | 8.9 | % | |||||||||||||||||||
Auto | 301,943 | 3.1 | % | 282,474 | 4.0 | % | 262,071 | 4.2 | % | 234,061 | 4.1 | % | 207,813 | 3.9 | % | |||||||||||||||||||
HELOC | 613,383 | 6.3 | % | 537,521 | 7.5 | % | 526,884 | 8.4 | % | 516,726 | 9.1 | % | 523,341 | 9.8 | % | |||||||||||||||||||
Consumer | 379,694 | 3.9 | % | 408,667 | 5.7 | % | 278,549 | 4.4 | % | 169,903 | 3.0 | % | 125,313 | 2.3 | % | |||||||||||||||||||
Other Commercial | 241,917 | 2.5 | % | 239,320 | 3.3 | % | 150,976 | 2.4 | % | 134,124 | 2.4 | % | 125,899 | 2.4 | % | |||||||||||||||||||
Total loans held for investment | $ | 9,716,207 | 100.0 | % | $ | 7,141,552 | 100.0 | % | $ | 6,307,060 | 100.0 | % | $ | 5,671,462 | 100.0 | % | $ | 5,345,996 | 100.0 | % |
Variable Rate | Fixed Rate | ||||||||||||||||||||||||||||||
Total Maturities | Less than 1 year | Total | 1-5 years | More than 5 years | Total | 1-5 years | More than 5 years | ||||||||||||||||||||||||
Construction and Land Development | $ | 1,194,821 | $ | 567,346 | $ | 356,970 | $ | 289,810 | $ | 67,160 | $ | 270,505 | $ | 211,573 | $ | 58,932 | |||||||||||||||
Commercial Real Estate - Owner Occupied | 1,337,345 | 160,235 | 298,962 | 59,819 | 239,143 | 878,148 | 600,108 | 278,040 | |||||||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 2,467,410 | 252,925 | 882,486 | 390,913 | 491,573 | 1,331,999 | 996,827 | 335,172 | |||||||||||||||||||||||
Multifamily Real Estate | 548,231 | 39,765 | 224,044 | 110,156 | 113,888 | 284,422 | 258,886 | 25,536 | |||||||||||||||||||||||
Commercial & Industrial | 1,317,135 | 426,303 | 527,440 | 437,448 | 89,992 | 363,392 | 261,907 | 101,485 | |||||||||||||||||||||||
Residential 1-4 Family - Commercial | 713,750 | 102,873 | 96,286 | 12,815 | 83,471 | 514,591 | 407,804 | 106,787 | |||||||||||||||||||||||
Residential 1-4 Family - Mortgage | 600,578 | 11,197 | 300,784 | 6,203 | 294,581 | 288,597 | 21,895 | 266,702 | |||||||||||||||||||||||
Auto | 301,943 | 2,663 | 4 | 4 | — | 299,276 | 154,437 | 144,839 | |||||||||||||||||||||||
HELOC | 613,383 | 51,678 | 555,051 | 96,695 | 458,356 | 6,654 | 1,207 | 5,447 | |||||||||||||||||||||||
Consumer | 379,694 | 5,226 | 14,883 | 13,005 | 1,878 | 359,585 | 247,414 | 112,171 | |||||||||||||||||||||||
Other Commercial | 241,917 | 48,965 | 84,322 | 7,701 | 76,621 | 108,630 | 46,440 | 62,190 | |||||||||||||||||||||||
Total loans held for investment | $ | 9,716,207 | $ | 1,669,176 | $ | 3,341,232 | $ | 1,424,569 | $ | 1,916,663 | $ | 4,705,799 | $ | 3,208,498 | $ | 1,497,301 |
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Nonaccrual loans, excluding PCI loans | $ | 26,953 | $ | 21,743 | $ | 9,973 | $ | 11,936 | $ | 19,255 | |||||||||
Foreclosed properties | 6,722 | 5,253 | 7,430 | 11,994 | 23,058 | ||||||||||||||
Total NPAs | 33,675 | 26,996 | 17,403 | 23,930 | 42,313 | ||||||||||||||
Loans past due 90 days and accruing interest | 8,856 | 3,532 | 3,005 | 5,829 | 10,047 | ||||||||||||||
Total NPAs and loans past due 90 days and accruing interest | $ | 42,531 | $ | 30,528 | $ | 20,408 | $ | 29,759 | $ | 52,360 | |||||||||
Performing TDRs | $ | 19,201 | $ | 14,553 | $ | 13,967 | $ | 10,780 | $ | 22,829 | |||||||||
PCI loans | 90,221 | 39,021 | 59,292 | 73,737 | 105,788 | ||||||||||||||
Balances | |||||||||||||||||||
Allowance for loan losses | $ | 41,045 | $ | 38,208 | $ | 37,192 | $ | 34,047 | $ | 32,384 | |||||||||
Average loans, net of deferred fees and costs | 9,584,785 | 6,701,101 | 5,956,125 | 5,487,367 | 5,235,471 | ||||||||||||||
Loans, net of deferred fees and costs | 9,716,207 | 7,141,552 | 6,307,060 | 5,671,462 | 5,345,996 | ||||||||||||||
Ratios | |||||||||||||||||||
NPAs to total loans | 0.35 | % | 0.38 | % | 0.28 | % | 0.42 | % | 0.79 | % | |||||||||
NPAs & loans 90 days past due to total loans | 0.44 | % | 0.43 | % | 0.32 | % | 0.52 | % | 0.98 | % | |||||||||
NPAs to total loans & foreclosed property | 0.35 | % | 0.38 | % | 0.28 | % | 0.42 | % | 0.79 | % | |||||||||
NPAs & loans 90 days past due to total loans & foreclosed property | 0.44 | % | 0.43 | % | 0.32 | % | 0.52 | % | 0.98 | % | |||||||||
ALL to nonaccrual loans | 152.28 | % | 175.73 | % | 372.93 | % | 285.25 | % | 168.18 | % | |||||||||
ALL to nonaccrual loans & loans 90 days past due | 114.62 | % | 151.17 | % | 286.58 | % | 191.65 | % | 110.52 | % |
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Beginning Balance | $ | 21,743 | $ | 9,973 | $ | 11,936 | $ | 19,255 | $ | 15,035 | |||||||||
Net customer payments | (9,642 | ) | (7,976 | ) | (7,159 | ) | (10,240 | ) | (8,053 | ) | |||||||||
Additions | 21,441 | 27,985 | 13,171 | 12,517 | 20,961 | ||||||||||||||
Charge-offs | (4,148 | ) | (6,782 | ) | (4,418 | ) | (7,064 | ) | (2,732 | ) | |||||||||
Loans returning to accruing status | (2,021 | ) | (609 | ) | (2,390 | ) | (1,497 | ) | (3,492 | ) | |||||||||
Transfers to foreclosed property | (420 | ) | (848 | ) | (1,167 | ) | (1,035 | ) | (2,464 | ) | |||||||||
Ending Balance | $ | 26,953 | $ | 21,743 | $ | 9,973 | $ | 11,936 | $ | 19,255 | |||||||||
Nonaccrual loans to total loans | 0.28 | % | 0.30 | % | 0.16 | % | 0.21 | % | 0.36 | % |
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Construction and Land Development | $ | 8,018 | $ | 5,610 | $ | 2,037 | $ | 2,113 | $ | 3,419 | |||||||||
Commercial Real Estate - Owner Occupied | 3,636 | 2,708 | 794 | 3,904 | 1,060 | ||||||||||||||
Commercial Real Estate - Non-owner Occupied | 1,789 | 2,992 | — | 100 | 5,903 | ||||||||||||||
Commercial & Industrial | 1,524 | 316 | 124 | 429 | 2,754 | ||||||||||||||
Residential 1-4 Family - Commercial | 2,481 | 1,085 | 1,071 | 1,566 | 2,660 | ||||||||||||||
Residential 1-4 Family - Mortgage | 7,276 | 6,269 | 4,208 | 1,997 | 2,484 | ||||||||||||||
Auto | 576 | 413 | 169 | 192 | — | ||||||||||||||
HELOC | 1,518 | 2,075 | 1,279 | 1,348 | 604 | ||||||||||||||
Consumer and all other | 135 | 275 | 291 | 287 | 371 | ||||||||||||||
Total | $ | 26,953 | $ | 21,743 | $ | 9,973 | $ | 11,936 | $ | 19,255 | |||||||||
Coverage Ratio | 152.28 | % | 175.73 | % | 372.93 | % | 285.25 | % | 168.18 | % |
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Beginning Balance | $ | 5,253 | $ | 7,430 | $ | 11,994 | $ | 23,058 | $ | 34,116 | |||||||||
Additions of foreclosed property | 924 | 1,078 | 2,062 | 2,378 | 5,991 | ||||||||||||||
Acquisitions of foreclosed property(1) | 4,042 | — | — | — | 4,319 | ||||||||||||||
Capitalized Improvements | — | — | — | 308 | 686 | ||||||||||||||
Valuation Adjustments | (1,324 | ) | (1,552 | ) | (1,017 | ) | (6,002 | ) | (7,646 | ) | |||||||||
Proceeds from sales | (2,439 | ) | (1,676 | ) | (5,707 | ) | (7,929 | ) | (13,639 | ) | |||||||||
Gains (losses) from sales | 266 | (27 | ) | 98 | 181 | (769 | ) | ||||||||||||
Ending Balance | $ | 6,722 | $ | 5,253 | $ | 7,430 | $ | 11,994 | $ | 23,058 |
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Land | $ | 2,306 | $ | 2,755 | $ | 3,328 | $ | 5,731 | $ | 8,726 | |||||||||
Land Development | 2,809 | 1,045 | 2,379 | 2,918 | 7,162 | ||||||||||||||
Residential Real Estate | 1,204 | 1,314 | 1,549 | 2,601 | 5,736 | ||||||||||||||
Commercial Real Estate | 403 | 139 | 174 | 744 | 1,434 | ||||||||||||||
Total | $ | 6,722 | $ | 5,253 | $ | 7,430 | $ | 11,994 | $ | 23,058 |
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Balance, beginning of year | $ | 38,208 | $ | 37,192 | $ | 34,047 | $ | 32,384 | $ | 30,135 | |||||||||
Loans charged-off: | |||||||||||||||||||
Commercial | 833 | 2,277 | 1,920 | 2,361 | 1,557 | ||||||||||||||
Real estate | 5,042 | 5,486 | 4,125 | 7,158 | 5,855 | ||||||||||||||
Consumer | 10,355 | 5,547 | 2,510 | 2,016 | 1,608 | ||||||||||||||
Total loans charged-off | 16,230 | 13,310 | 8,555 | 11,535 | 9,020 | ||||||||||||||
Recoveries: | |||||||||||||||||||
Commercial | 534 | 483 | 483 | 958 | 316 | ||||||||||||||
Real estate | 2,461 | 1,130 | 1,781 | 2,154 | 2,314 | ||||||||||||||
Consumer | 2,173 | 1,642 | 761 | 815 | 839 | ||||||||||||||
Total recoveries | 5,168 | 3,255 | 3,025 | 3,927 | 3,469 | ||||||||||||||
Net charge-offs | 11,062 | 10,055 | 5,530 | 7,608 | 5,551 | ||||||||||||||
Provision for loan losses - continuing operations | 14,084 | 11,117 | 8,458 | 9,150 | 7,800 | ||||||||||||||
Provision for loan losses - discontinued operations | (185 | ) | (46 | ) | 217 | 121 | — | ||||||||||||
Balance, end of year | $ | 41,045 | $ | 38,208 | $ | 37,192 | $ | 34,047 | $ | 32,384 | |||||||||
ALL to loans | 0.42 | % | 0.54 | % | 0.59 | % | 0.60 | % | 0.61 | % | |||||||||
Net charge-offs to average loans | 0.12 | % | 0.15 | % | 0.09 | % | 0.14 | % | 0.11 | % | |||||||||
Provision to average loans | 0.15 | % | 0.17 | % | 0.15 | % | 0.17 | % | 0.15 | % |
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||||||
$ | %(1) | $ | %(1) | $ | %(1) | $ | %(1) | $ | %(1) | |||||||||||||||||||||||||
Commercial | $ | 7,636 | 13.6 | % | $ | 4,552 | 8.6 | % | $ | 4,627 | 8.7 | % | $ | 3,163 | 7.7 | % | $ | 2,610 | 7.0 | % | ||||||||||||||
Real estate | 24,821 | 76.9 | % | 28,597 | 78.4 | % | 29,441 | 80.3 | % | 27,537 | 82.8 | % | 26,408 | 84.4 | % | |||||||||||||||||||
Consumer | 8,588 | 9.5 | % | 5,059 | 13.0 | % | 3,124 | 11.0 | % | 3,347 | 9.5 | % | 3,366 | 8.6 | % | |||||||||||||||||||
Total | $ | 41,045 | 100.0 | % | $ | 38,208 | 100.0 | % | $ | 37,192 | 100.0 | % | $ | 34,047 | 100.0 | % | $ | 32,384 | 100.0 | % |
2018 | 2017 | ||||||||||||
Deposits: | Amount | % of total deposits | Amount | % of total deposits | |||||||||
Non-interest bearing | $ | 2,094,607 | 21.0 | % | $ | 1,502,208 | 21.5 | % | |||||
NOW accounts | 2,288,523 | 23.0 | % | 1,929,416 | 27.6 | % | |||||||
Money market accounts | 2,875,301 | 28.8 | % | 1,685,174 | 24.1 | % | |||||||
Savings accounts | 622,823 | 6.2 | % | 546,274 | 7.8 | % | |||||||
Time deposits of $100,000 and over (1) | 1,067,181 | 10.7 | % | 624,112 | 8.9 | % | |||||||
Other time deposits | 1,022,525 | 10.3 | % | 704,534 | 10.1 | % | |||||||
Total Deposits | $ | 9,970,960 | 100.0 | % | $ | 6,991,718 | 100.0 | % |
Amount | |||
Within 3 Months | $ | 433,492 | |
3 - 12 Months | 764,474 | ||
Over 12 Months | 891,740 | ||
Total | $ | 2,089,706 |
2018 | 2017 | 2016 | |||||||||
Common equity Tier 1 capital | $ | 1,106,871 | $ | 737,204 | $ | 699,728 | |||||
Tier 1 capital | 1,236,709 | 826,979 | 790,228 | ||||||||
Tier 2 capital | 199,002 | 186,809 | 185,917 | ||||||||
Total risk-based capital | 1,435,711 | 1,013,788 | 976,145 | ||||||||
Risk-weighted assets | 11,146,898 | 8,157,174 | 7,200,778 | ||||||||
Capital ratios: | |||||||||||
Common equity Tier 1 capital ratio | 9.93 | % | 9.04 | % | 9.72 | % | |||||
Tier 1 capital ratio | 11.09 | % | 10.14 | % | 10.97 | % | |||||
Total capital ratio | 12.88 | % | 12.43 | % | 13.56 | % | |||||
Leverage ratio (Tier 1 capital to average assets) | 9.71 | % | 9.42 | % | 9.87 | % | |||||
Capital conservation buffer ratio (1) | 4.88 | % | 4.14 | % | 4.97 | % | |||||
Common equity to total assets | 13.98 | % | 11.23 | % | 11.88 | % | |||||
Tangible common equity to tangible assets (2) | 8.84 | % | 8.14 | % | 8.41 | % |
2018 | 2017 | ||||||
Commitments with off-balance sheet risk: | |||||||
Commitments to extend credit (1) | $ | 3,167,085 | $ | 2,192,812 | |||
Standby letters of credit | 167,597 | 127,435 | |||||
Total commitments with off-balance sheet risk | $ | 3,334,682 | $ | 2,320,247 |
Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
Long-term debt (1) | $ | 543,500 | $ | 25,000 | $ | 20,000 | $ | 140,000 | $ | 358,500 | |||||||||
Trust preferred capital notes (1) | 150,004 | — | — | — | 150,004 | ||||||||||||||
Operating leases | 61,770 | 11,805 | 18,334 | 13,302 | 18,329 | ||||||||||||||
Other short-term borrowings | 1,048,600 | 1,048,600 | — | — | — | ||||||||||||||
Repurchase agreements | 39,197 | 39,197 | — | — | — | ||||||||||||||
Total contractual obligations | $ | 1,843,071 | $ | 1,124,602 | $ | 38,334 | $ | 153,302 | $ | 526,833 |
Change In Net Interest Income December 31, | |||||||||||
2018 | 2017 | ||||||||||
% | $ | % | $ | ||||||||
Change in Yield Curve: | |||||||||||
+300 bps | 8.58 | 38,997 | 5.34 | 16,691 | |||||||
+200 bps | 6.26 | 28,464 | 3.81 | 11,905 | |||||||
+100 bps | 3.24 | 14,744 | 2.11 | 6,597 | |||||||
Most likely rate scenario | — | — | — | — | |||||||
-100 bps | (4.38 | ) | (19,892 | ) | (2.70 | ) | (8,430 | ) | |||
-200 bps | (10.03 | ) | (45,583 | ) | (6.78 | ) | (21,181 | ) |
Change In Economic Value of Equity December 31, | |||||||||||
2018 | 2017 | ||||||||||
% | $ | % | $ | ||||||||
Change in Yield Curve: | |||||||||||
+300 bps | (5.44 | ) | (142,691 | ) | (2.69 | ) | (40,737 | ) | |||
+200 bps | (3.26 | ) | (85,657 | ) | (1.26 | ) | (19,010 | ) | |||
+100 bps | (1.35 | ) | (35,425 | ) | (0.19 | ) | (2,889 | ) | |||
Most likely rate scenario | |||||||||||
-100 bps | (0.90 | ) | (23,496 | ) | (2.23 | ) | (33,689 | ) | |||
-200 bps | (4.80 | ) | (125,969 | ) | (6.34 | ) | (96,010 | ) |
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Interest Income (FTE) | |||||||||||||||||||
Interest and Dividend Income (GAAP) | $ | 528,788 | $ | 329,044 | $ | 293,736 | $ | 275,387 | $ | 273,140 | |||||||||
FTE adjustment | 8,195 | 11,767 | 11,428 | 10,463 | 9,932 | ||||||||||||||
Interest and Dividend Income FTE (non-GAAP) | $ | 536,983 | $ | 340,811 | $ | 305,164 | $ | 285,850 | $ | 283,072 | |||||||||
Average earning assets | $ | 11,620,893 | $ | 8,016,311 | $ | 7,249,090 | $ | 6,713,239 | $ | 6,437,681 | |||||||||
Yield on interest-earning assets (GAAP) | 4.55 | % | 4.10 | % | 4.05 | % | 4.10 | % | 4.24 | % | |||||||||
Yield on interest-earning assets (FTE) (non-GAAP) | 4.62 | % | 4.25 | % | 4.21 | % | 4.26 | % | 4.40 | % | |||||||||
Net Interest Income (FTE) | |||||||||||||||||||
Net Interest Income (GAAP) | $ | 426,691 | $ | 279,007 | $ | 263,966 | $ | 250,450 | $ | 253,213 | |||||||||
FTE adjustment | 8,195 | 11,767 | 11,428 | 10,463 | 9,932 | ||||||||||||||
Net Interest Income FTE (non-GAAP) | $ | 434,886 | $ | 290,774 | $ | 275,394 | $ | 260,913 | $ | 263,145 | |||||||||
Average earning assets | $ | 11,620,893 | $ | 8,016,311 | $ | 7,249,090 | $ | 6,713,239 | $ | 6,437,681 | |||||||||
Net interest margin (GAAP) | 3.67 | % | 3.48 | % | 3.64 | % | 3.73 | % | 3.93 | % | |||||||||
Net interest margin (FTE) (non-GAAP) | 3.74 | % | 3.63 | % | 3.80 | % | 3.89 | % | 4.09 | % | |||||||||
Tangible Assets | |||||||||||||||||||
Ending Assets (GAAP) | $ | 13,765,599 | $ | 9,315,179 | $ | 8,426,793 | $ | 7,693,291 | $ | 7,358,643 | |||||||||
Less: Ending goodwill | 727,168 | 298,528 | 298,191 | 293,522 | 293,522 | ||||||||||||||
Less: Ending amortizable intangibles | 48,685 | 14,803 | 20,602 | 23,310 | 31,755 | ||||||||||||||
Ending tangible assets (non-GAAP) | $ | 12,989,746 | $ | 9,001,848 | $ | 8,108,000 | $ | 7,376,459 | $ | 7,033,366 | |||||||||
Tangible Common Equity | |||||||||||||||||||
Ending equity (GAAP) | $ | 1,924,581 | $ | 1,046,329 | $ | 1,001,032 | $ | 995,367 | $ | 977,169 | |||||||||
Less: Ending goodwill | 727,168 | 298,528 | 298,191 | 293,522 | 293,522 | ||||||||||||||
Less: Ending amortizable intangibles | 48,685 | 14,803 | 20,602 | 23,310 | 31,755 | ||||||||||||||
Ending tangible common equity (non-GAAP) | $ | 1,148,728 | $ | 732,998 | $ | 682,239 | $ | 678,535 | $ | 651,892 | |||||||||
Average equity (GAAP) | $ | 1,863,216 | $ | 1,030,847 | $ | 994,785 | $ | 991,977 | $ | 983,727 | |||||||||
Less: Average goodwill | 725,597 | 298,240 | 296,087 | 293,522 | 296,870 | ||||||||||||||
Less: Average amortizable intangibles | 51,347 | 17,482 | 22,044 | 27,384 | 36,625 | ||||||||||||||
Average tangible common equity (non-GAAP) | $ | 1,086,272 | $ | 715,125 | $ | 676,654 | $ | 671,071 | $ | 650,232 | |||||||||
ROE (GAAP) | 7.85 | % | 7.07 | % | 7.79 | % | 6.76 | % | 5.30 | % | |||||||||
ROTCE (non-GAAP) | 14.40 | % | 10.75 | % | 12.14 | % | 10.81 | % | 9.00 | % | |||||||||
Common equity to assets (GAAP) | 13.98 | % | 11.23 | % | 11.88 | % | 12.94 | % | 13.28 | % | |||||||||
Tangible common equity to tangible assets (non-GAAP) | 8.84 | % | 8.14 | % | 8.41 | % | 9.20 | % | 9.27 | % | |||||||||
Book value per share (GAAP) | $ | 29.34 | $ | 24.10 | $ | 23.15 | $ | 22.38 | $ | 21.73 | |||||||||
Tangible book value per share (non-GAAP) | $ | 17.51 | $ | 16.88 | $ | 15.78 | $ | 15.25 | $ | 14.50 | |||||||||
Operating Earnings & EPS | |||||||||||||||||||
Net Income (GAAP) | $ | 146,248 | $ | 72,923 | $ | 77,476 | $ | 67,079 | $ | 52,164 | |||||||||
Plus: Merger-related costs, net of tax | 32,065 | 4,405 | — | — | 13,724 | ||||||||||||||
Plus: Nonrecurring tax expenses | — | 6,250 | — | — | — | ||||||||||||||
Net operating earnings (non-GAAP) | $ | 178,313 | $ | 83,578 | $ | 77,476 | $ | 67,079 | $ | 65,888 | |||||||||
Weighted average common shares outstanding, diluted | 65,908,573 | 43,779,744 | 43,890,271 | 45,138,891 | 46,130,895 | ||||||||||||||
Earnings per common share, diluted (GAAP) | $ | 2.22 | $ | 1.67 | $ | 1.77 | $ | 1.49 | $ | 1.13 | |||||||||
Operating earnings per common share, diluted (non-GAAP) | $ | 2.71 | $ | 1.91 | $ | 1.77 | $ | 1.49 | $ | 1.43 |
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Operating Performance Metrics | |||||||||||||||||||
Average assets (GAAP) | $ | 13,181,609 | $ | 8,820,142 | $ | 8,046,305 | $ | 7,492,895 | $ | 7,250,494 | |||||||||
ROA (GAAP) | 1.11 | % | 0.83 | % | 0.96 | % | 0.90 | % | 0.72 | % | |||||||||
Operating ROA (non-GAAP) | 1.35 | % | 0.95 | % | 0.96 | % | 0.90 | % | 0.91 | % | |||||||||
Average common equity (GAAP) | $ | 1,863,216 | $ | 1,030,847 | $ | 994,785 | $ | 991,977 | $ | 983,727 | |||||||||
ROE (GAAP) | 7.85 | % | 7.07 | % | 7.79 | % | 6.76 | % | 5.30 | % | |||||||||
Operating ROE (non-GAAP) | 9.57 | % | 8.11 | % | 7.79 | % | 6.76 | % | 6.70 | % | |||||||||
Average tangible common equity (non-GAAP) | $ | 1,086,272 | $ | 715,125 | $ | 676,654 | $ | 671,071 | $ | 650,232 | |||||||||
ROTCE (non-GAAP) | 14.40 | % | 10.75 | % | 12.14 | % | 10.81 | % | 9.00 | % | |||||||||
Operating ROTCE (non-GAAP) | 17.35 | % | 12.24 | % | 12.14 | % | 10.81 | % | 11.11 | % | |||||||||
Operating Noninterest Expense & Efficiency Ratio | |||||||||||||||||||
Noninterest expense (GAAP) | $ | 337,767 | $ | 225,668 | $ | 213,090 | $ | 206,310 | $ | 222,419 | |||||||||
Less: Merger-related costs | 39,728 | 5,393 | — | — | 20,345 | ||||||||||||||
Operating noninterest expense (non-GAAP) | $ | 298,039 | $ | 220,275 | $ | 213,090 | $ | 206,310 | $ | 202,074 | |||||||||
Net interest income (GAAP) | $ | 426,691 | $ | 279,007 | $ | 263,966 | $ | 250,450 | $ | 253,213 | |||||||||
Net interest income (FTE) (non-GAAP) | 434,886 | 290,774 | 275,394 | 260,913 | 263,145 | ||||||||||||||
Noninterest income (GAAP) | 104,241 | 62,429 | 59,849 | 54,993 | 51,220 | ||||||||||||||
Efficiency Ratio (GAAP) | 63.62 | % | 66.09 | % | 65.81 | % | 67.54 | % | 73.06 | % | |||||||||
Operating efficiency ratio (FTE) (non-GAAP) | 55.28 | % | 62.36 | % | 63.56 | % | 65.31 | % | 64.28 | % | |||||||||
ROTCE | |||||||||||||||||||
Net Income (GAAP) | $ | 146,248 | $ | 72,923 | $ | 77,476 | $ | 67,079 | $ | 52,164 | |||||||||
Plus: Amortization of intangibles, tax effected | 10,143 | 3,957 | 4,687 | 5,489 | 6,367 | ||||||||||||||
Net Income before amortization of intangibles (non-GAAP) | $ | 156,391 | $ | 76,880 | $ | 82,163 | $ | 72,568 | $ | 58,531 | |||||||||
Average tangible common equity (non-GAAP) | $ | 1,086,272 | $ | 715,125 | $ | 676,654 | $ | 671,071 | $ | 650,232 | |||||||||
ROTCE (non-GAAP) | 14.40 | % | 10.75 | % | 12.14 | % | 10.81 | % | 9.00 | % | |||||||||
Operating ROTCE | |||||||||||||||||||
Operating Net Income (GAAP) | $ | 178,313 | $ | 83,578 | $ | 77,476 | $ | 67,079 | $ | 65,888 | |||||||||
Plus: Amortization of intangibles, tax effected | 10,143 | 3,957 | 4,687 | 5,489 | 6,367 | ||||||||||||||
Net Income before amortization of intangibles (non-GAAP) | $ | 188,456 | $ | 87,535 | $ | 82,163 | $ | 72,568 | $ | 72,255 | |||||||||
Average tangible common equity (non-GAAP) | $ | 1,086,272 | $ | 715,125 | $ | 676,654 | $ | 671,071 | $ | 650,232 | |||||||||
Operating ROTCE (non-GAAP) | 17.35 | % | 12.24 | % | 12.14 | % | 10.81 | % | 11.11 | % |
Quarter | |||||||||||||||
First | Second | Third | Fourth | ||||||||||||
For the Year 2018 | |||||||||||||||
Interest and dividend income | $ | 124,379 | $ | 132,409 | $ | 131,363 | $ | 140,636 | |||||||
Interest expense | 20,907 | 24,241 | 25,400 | 31,547 | |||||||||||
Net interest income | 103,472 | 108,168 | 105,963 | 109,089 | |||||||||||
Provision for credit losses | 3,524 | 2,147 | 3,340 | 4,725 | |||||||||||
Net interest income after provision for credit losses | 99,948 | 106,021 | 102,623 | 104,364 | |||||||||||
Noninterest income | 20,267 | 40,597 | 19,887 | 23,487 | |||||||||||
Noninterest expenses | 101,743 | 85,140 | 76,349 | 74,533 | |||||||||||
Income before income taxes | 18,472 | 61,478 | 46,161 | 53,318 | |||||||||||
Income tax expense | 1,897 | 11,678 | 7,399 | 9,041 | |||||||||||
Income from continuing operations | $ | 16,575 | $ | 49,800 | $ | 38,762 | 44,277 | ||||||||
Discontinued operations, net of tax | 64 | (2,473 | ) | (565 | ) | (192 | ) | ||||||||
Net income | $ | 16,639 | $ | 47,327 | $ | 38,197 | $ | 44,085 | |||||||
Earnings per share, basic | $ | 0.25 | $ | 0.72 | $ | 0.58 | $ | 0.67 | |||||||
Earnings per share, diluted | $ | 0.25 | $ | 0.72 | $ | 0.58 | $ | 0.67 | |||||||
Basic weighted average number of common shares outstanding | 65,554,630 | 65,919,055 | 65,974,702 | 65,982,304 | |||||||||||
Diluted weighted average number of common shares outstanding | 65,636,262 | 65,965,577 | 66,013,152 | 66,013,326 | |||||||||||
For the Year 2017 | |||||||||||||||
Interest and dividend income | $ | 76,438 | $ | 80,926 | $ | 84,499 | $ | 87,179 | |||||||
Interest expense | 10,073 | 12,222 | 13,652 | 14,089 | |||||||||||
Net interest income | 66,365 | 68,704 | 70,847 | 73,090 | |||||||||||
Provision for credit losses | 2,104 | 2,184 | 3,056 | 3,458 | |||||||||||
Net interest income after provision for credit losses | 64,261 | 66,520 | 67,791 | 69,632 | |||||||||||
Noninterest income | 16,813 | 15,262 | 15,230 | 15,124 | |||||||||||
Noninterest expenses | 55,092 | 57,575 | 55,204 | 57,796 | |||||||||||
Income before income taxes | 25,982 | 24,207 | 27,817 | 26,960 | |||||||||||
Income tax expense | 6,791 | 6,725 | 7,397 | 11,867 | |||||||||||
Income from continuing operations | $ | 19,191 | $ | 17,482 | $ | 20,420 | 15,093 | ||||||||
Discontinued operations, net of tax | $ | (67 | ) | 474 | 238 | 92 | |||||||||
Net income | $ | 19,124 | $ | 17,956 | $ | 20,658 | $ | 15,185 | |||||||
Earnings per share, basic | $ | 0.44 | $ | 0.41 | $ | 0.47 | $ | 0.35 | |||||||
Earnings per share, diluted | $ | 0.44 | $ | 0.41 | $ | 0.47 | $ | 0.35 | |||||||
Basic weighted average number of common shares outstanding | 43,654,498 | 43,693,427 | 43,706,635 | 43,740,001 | |||||||||||
Diluted weighted average number of common shares outstanding | 43,725,923 | 43,783,952 | 43,792,058 | 43,816,018 |
UNION BANKSHARES CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
AS OF DECEMBER 31, 2018 AND 2017 | |||||||
(Dollars in thousands, except share data) | |||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Cash and cash equivalents: | |||||||
Cash and due from banks | $ | 166,927 | $ | 117,586 | |||
Interest-bearing deposits in other banks | 94,056 | 81,291 | |||||
Federal funds sold | 216 | 496 | |||||
Total cash and cash equivalents | 261,199 | 199,373 | |||||
Securities available for sale, at fair value | 1,774,821 | 974,222 | |||||
Securities held to maturity, at carrying value | 492,272 | 199,639 | |||||
Restricted stock, at cost | 124,602 | 75,283 | |||||
Loans held for investment, net of deferred fees | 9,716,207 | 7,141,552 | |||||
Less allowance for loan losses | 41,045 | 38,208 | |||||
Total loans held for investment, net | 9,675,162 | 7,103,344 | |||||
Premises and equipment, net | 146,967 | 119,604 | |||||
Goodwill | 727,168 | 298,528 | |||||
Amortizable intangibles, net | 48,685 | 14,803 | |||||
Bank owned life insurance | 263,034 | 182,854 | |||||
Other assets | 250,210 | 102,871 | |||||
Assets of discontinued operations | 1,479 | 44,658 | |||||
Total assets | $ | 13,765,599 | $ | 9,315,179 | |||
LIABILITIES | |||||||
Noninterest-bearing demand deposits | $ | 2,094,607 | $ | 1,502,208 | |||
Interest-bearing deposits | 7,876,353 | 5,489,510 | |||||
Total deposits | 9,970,960 | 6,991,718 | |||||
Securities sold under agreements to repurchase | 39,197 | 49,152 | |||||
Other short-term borrowings | 1,048,600 | 745,000 | |||||
Long-term borrowings | 668,481 | 425,262 | |||||
Other liabilities | 112,093 | 54,008 | |||||
Liabilities of discontinued operations | 1,687 | 3,710 | |||||
Total liabilities | 11,841,018 | 8,268,850 | |||||
Commitments and contingencies (Note 9) | |||||||
STOCKHOLDERS' EQUITY | |||||||
Common stock, $1.33 par value, shares authorized 100,000,000; issued and outstanding, 65,977,149 shares and 43,743,318 shares, respectively. | 87,250 | 57,744 | |||||
Additional paid-in capital | 1,380,259 | 610,001 | |||||
Retained earnings | 467,345 | 379,468 | |||||
Accumulated other comprehensive income (loss) | (10,273 | ) | (884 | ) | |||
Total stockholders' equity | 1,924,581 | 1,046,329 | |||||
Total liabilities and stockholders' equity | $ | 13,765,599 | $ | 9,315,179 |
UNION BANKSHARES CORPORATION AND SUBSIDIARIES | |||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
YEARS ENDED DECEMBER 31, 2018, 2017, AND 2016 | |||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||
2018 | 2017 | 2016 | |||||||||
Interest and dividend income: | |||||||||||
Interest and fees on loans | $ | 469,856 | $ | 293,996 | $ | 261,383 | |||||
Interest on deposits in other banks | 2,125 | 539 | 244 | ||||||||
Interest and dividends on securities: | |||||||||||
Taxable | 36,851 | 20,305 | 18,319 | ||||||||
Nontaxable | 19,956 | 14,204 | 13,790 | ||||||||
Total interest and dividend income | 528,788 | 329,044 | 293,736 | ||||||||
Interest expense: | |||||||||||
Interest on deposits | 59,336 | 26,106 | 17,731 | ||||||||
Interest on short-term borrowings | 18,458 | 6,035 | 2,894 | ||||||||
Interest on long-term borrowings | 24,303 | 17,896 | 9,145 | ||||||||
Total interest expense | 102,097 | 50,037 | 29,770 | ||||||||
Net interest income | 426,691 | 279,007 | 263,966 | ||||||||
Provision for credit losses | 13,736 | 10,802 | 8,883 | ||||||||
Net interest income after provision for credit losses | 412,955 | 268,205 | 255,083 | ||||||||
Noninterest income: | |||||||||||
Service charges on deposit accounts | 25,439 | 18,850 | 18,168 | ||||||||
Other service charges, commissions and fees | 5,603 | 4,593 | 4,445 | ||||||||
Interchange fees, net | 18,803 | 14,974 | 14,058 | ||||||||
Fiduciary and asset management fees | 16,150 | 11,245 | 10,199 | ||||||||
Gains (losses) on securities transactions, net | 383 | 800 | 205 | ||||||||
Bank owned life insurance income | 7,198 | 6,144 | 5,513 | ||||||||
Loan-related interest rate swap fees | 3,554 | 3,051 | 4,254 | ||||||||
Gain on Shore Premier sale | 19,966 | — | — | ||||||||
Other operating income | 7,145 | 2,772 | 3,007 | ||||||||
Total noninterest income | 104,241 | 62,429 | 59,849 | ||||||||
Noninterest expenses: | |||||||||||
Salaries and benefits | 159,378 | 115,968 | 110,521 | ||||||||
Occupancy expenses | 25,368 | 18,558 | 18,502 | ||||||||
Furniture and equipment expenses | 11,991 | 10,047 | 9,814 | ||||||||
Printing, postage, and supplies | 4,650 | 4,901 | 4,610 | ||||||||
Communications expense | 3,898 | 3,304 | 3,744 | ||||||||
Technology and data processing | 18,397 | 16,132 | 15,032 | ||||||||
Professional services | 10,283 | 7,767 | 8,051 | ||||||||
Marketing and advertising expense | 10,043 | 7,795 | 7,756 | ||||||||
FDIC assessment premiums and other insurance | 6,644 | 4,048 | 5,406 | ||||||||
Other taxes | 11,542 | 8,087 | 5,448 | ||||||||
Loan-related expenses | 7,206 | 4,733 | 4,168 | ||||||||
OREO and credit-related expenses | 4,131 | 3,764 | 2,600 | ||||||||
Amortization of intangible assets | 12,839 | 6,088 | 7,210 | ||||||||
Training and other personnel costs | 4,259 | 3,843 | 3,359 | ||||||||
Merger-related costs | 39,728 | 5,393 | — | ||||||||
Other expenses | 7,410 | 5,240 | 6,869 | ||||||||
Total noninterest expenses | 337,767 | 225,668 | 213,090 | ||||||||
Income from continuing operations before income taxes | 179,429 | 104,966 | 101,842 | ||||||||
Income tax expense | 30,016 | 32,790 | 25,944 | ||||||||
Income from continuing operations | 149,413 | 72,176 | 75,898 | ||||||||
Discontinued operations: | |||||||||||
Income (loss) from operations of discontinued mortgage segment | (4,280 | ) | 1,344 | 2,412 | |||||||
Income tax expense (benefit) | (1,115 | ) | 597 | 834 | |||||||
Income (loss) on discontinued operations | (3,165 | ) | 747 | 1,578 | |||||||
Net income | $ | 146,248 | $ | 72,923 | $ | 77,476 | |||||
Basic earnings per common share | $ | 2.22 | $ | 1.67 | $ | 1.77 |
Diluted earnings per common share | $ | 2.22 | $ | 1.67 | $ | 1.77 | |||||
Dividends declared per common share | $ | 0.88 | $ | 0.81 | $ | 0.77 | |||||
Basic weighted average number of common shares outstanding | 65,859,165 | 43,698,897 | 43,784,193 | ||||||||
Diluted weighted average number of common shares outstanding | 65,908,573 | 43,779,744 | 43,890,271 |
UNION BANKSHARES CORPORATION AND SUBSIDIARIES | |||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
YEARS ENDED DECEMBER 31, 2018, 2017, AND 2016 | |||||||||||
(Dollars in thousands) | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net income | $ | 146,248 | $ | 72,923 | $ | 77,476 | |||||
Other comprehensive income (loss): | |||||||||||
Cash flow hedges: | |||||||||||
Change in fair value of cash flow hedges | 1,087 | (44 | ) | 270 | |||||||
Reclassification adjustment for losses included in net income (net of tax, $259, $464, and $274 for the years ended December 31, 2018, 2017, and 2016, respectively) (1) | 975 | 862 | 508 | ||||||||
AFS securities: | |||||||||||
Unrealized holding gains (losses) arising during period (net of tax, $2,847, $1,580, and $4,408 for the years ended December 31, 2018, 2017, and 2016, respectively) | (10,711 | ) | 2,936 | (8,186 | ) | ||||||
Reclassification adjustment for gains included in net income (net of tax, $95, $280, and $72 for the years ended December 31, 2018, 2017, and 2016, respectively) (2) | (362 | ) | (520 | ) | (133 | ) | |||||
HTM securities: | |||||||||||
Reclassification adjustment for accretion of unrealized gain on AFS securities transferred to HTM (net of tax, $109, $362, and $568 for the years ended December 31, 2018, 2017 and 2016, respectively) (3) | (408 | ) | (672 | ) | (1,055 | ) | |||||
Bank owned life insurance: | |||||||||||
Unrealized holding gains (losses) arising during period | — | — | (1,728 | ) | |||||||
Reclassification adjustment for losses included in net income (4) | 76 | 363 | 263 | ||||||||
Other comprehensive income (loss) | (9,343 | ) | 2,925 | (10,061 | ) | ||||||
Comprehensive income | $ | 136,905 | $ | 75,848 | $ | 67,415 |
UNION BANKSHARES CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | |||||||||||||||||||
YEARS ENDED DECEMBER 31, 2018, 2017, AND 2016 | |||||||||||||||||||
(Dollars in thousands, except share amounts) | |||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||
Balance - December 31, 2015 | $ | 59,159 | 631,822 | 298,134 | 6,252 | $ | 995,367 | ||||||||||||
Net income - 2016 | 77,476 | 77,476 | |||||||||||||||||
Other comprehensive income (net of taxes of $4,774) | (10,061 | ) | (10,061 | ) | |||||||||||||||
Issuance of common stock in regard to acquisition (17,232 shares) | 23 | 430 | 453 | ||||||||||||||||
Dividends on common stock ($0.77 per share) | (33,672 | ) | (33,672 | ) | |||||||||||||||
Stock purchased under stock repurchase plan (1,411,131 shares) | (1,877 | ) | (31,300 | ) | (33,177 | ) | |||||||||||||
Issuance of common stock under Equity Compensation Plans (88,409 shares) | 118 | 1,311 | 1,429 | ||||||||||||||||
Issuance of common stock for services rendered (19,132 shares) | 25 | 508 | 533 | ||||||||||||||||
Vesting of restricted stock, including tax effects, under Equity Compensation Plans (43,620 shares) | 58 | (644 | ) | (586 | ) | ||||||||||||||
Stock-based compensation expense | 3,270 | 3,270 | |||||||||||||||||
Balance - December 31, 2016 | 57,506 | 605,397 | 341,938 | (3,809 | ) | 1,001,032 | |||||||||||||
Net income - 2017 | 72,923 | 72,923 | |||||||||||||||||
Other comprehensive income (net of taxes of $1,402) | 2,925 | 2,925 | |||||||||||||||||
Dividends on common stock ($0.81 per share) | (35,393 | ) | (35,393 | ) | |||||||||||||||
Issuance of common stock under Equity Compensation Plans (63,476 shares) | 84 | 953 | 1,037 | ||||||||||||||||
Issuance of common stock for services rendered (20,857 shares) | 28 | 696 | 724 | ||||||||||||||||
Vesting of restricted stock, including tax effects, under Equity Compensation Plans (94,370 shares) | 126 | (1,693 | ) | (1,567 | ) | ||||||||||||||
Stock-based compensation expense | 4,648 | 4,648 | |||||||||||||||||
Balance - December 31, 2017 | 57,744 | 610,001 | 379,468 | (884 | ) | 1,046,329 | |||||||||||||
Net income - 2018 | 146,248 | 146,248 | |||||||||||||||||
Other comprehensive income (net of taxes of $2,792) | (9,343 | ) | (9,343 | ) | |||||||||||||||
Issuance of common stock in regard to acquisitions (21,922,077 shares)(1) | 29,156 | 765,653 | 794,809 | ||||||||||||||||
Dividends on common stock ($0.88 per share) | (58,001 | ) | (58,001 | ) | |||||||||||||||
Issuance of common stock under Equity Compensation Plans (121,438 shares) | 162 | 2,185 | 2,347 | ||||||||||||||||
Issuance of common stock for services rendered (23,581 shares) | 31 | 883 | 914 | ||||||||||||||||
Vesting of restricted stock, including tax effects, under Equity Compensation Plans (118,058 shares) | 157 | (3,065 | ) | (2,908 | ) | ||||||||||||||
Cancellation of Warrants | (1,530 | ) | (1,530 | ) | |||||||||||||||
Impact of adoption of new guidance | (370 | ) | (46 | ) | (416 | ) | |||||||||||||
Stock-based compensation expense | 6,132 | 6,132 | |||||||||||||||||
Balance - December 31, 2018 | $ | 87,250 | $ | 1,380,259 | $ | 467,345 | $ | (10,273 | ) | $ | 1,924,581 |
UNION BANKSHARES CORPORATION AND SUBSIDIARIES | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
YEARS ENDED DECEMBER 31, 2018, 2017, AND 2016 | |||||||||||
(Dollars in thousands) | |||||||||||
2018 | 2017 | 2016 | |||||||||
Operating activities (1): | |||||||||||
Net income | $ | 146,248 | $ | 72,923 | $ | 77,476 | |||||
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities: | |||||||||||
Depreciation of premises and equipment | 13,725 | 11,183 | 10,215 | ||||||||
Writedown of foreclosed properties and former bank premises | 1,324 | 1,891 | 1,017 | ||||||||
Amortization, net | 12,603 | 14,021 | 13,555 | ||||||||
Amortization (accretion) related to acquisition, net | (6,711 | ) | (866 | ) | 1,534 | ||||||
Provision for credit losses | 13,551 | 10,756 | 9,100 | ||||||||
Gains on securities transactions, net | (383 | ) | (800 | ) | (205 | ) | |||||
BOLI income | (7,198 | ) | (5,306 | ) | (5,513 | ) | |||||
Deferred tax expense (benefit) | 17,821 | 5,624 | 243 | ||||||||
Decrease (increase) in loans held for sale, net | 40,662 | (4,175 | ) | (457 | ) | ||||||
Losses (gains) on sales of foreclosed properties and former bank premises, net | (220 | ) | 143 | (217 | ) | ||||||
Gain on Shore Premier sale | (19,966 | ) | — | — | |||||||
Goodwill impairment losses | 864 | — | — | ||||||||
Stock-based compensation expenses | 6,132 | 4,648 | 3,270 | ||||||||
Issuance of common stock for services | 914 | 724 | 533 | ||||||||
Net decrease (increase) in other assets | (26,606 | ) | (5,785 | ) | (14,810 | ) | |||||
Net increase (decrease) in other liabilities | 24,005 | 5,352 | (1,898 | ) | |||||||
Net cash and cash equivalents provided by (used in) operating activities | 216,765 | 110,333 | 93,843 | ||||||||
Investing activities: | |||||||||||
Purchases of AFS securities and restricted stock | (1,047,611 | ) | (298,958 | ) | (259,020 | ) | |||||
Purchases of HTM securities | (485,629 | ) | (7,836 | ) | (2,390 | ) | |||||
Proceeds from sales of AFS securities and restricted stock | 515,764 | 139,046 | 69,516 | ||||||||
Proceeds from maturities, calls and paydowns of AFS securities | 173,597 | 115,124 | 115,670 | ||||||||
Proceeds from maturities, calls and paydowns of HTM securities | — | 5,048 | 2,686 | ||||||||
Proceeds from sale of marketable equity securities | 28,913 | — | — | ||||||||
Proceeds from sale of loans held for investment | 581,324 | — | — | ||||||||
Net increase in loans held for investment | (704,582 | ) | (838,668 | ) | (637,207 | ) | |||||
Net increase in premises and equipment | 1,698 | (9,261 | ) | (6,339 | ) | ||||||
Proceeds from BOLI settlements | — | 2,497 | — | ||||||||
Proceeds from sales of foreclosed properties and former bank premises | 6,295 | 2,448 | 5,837 | ||||||||
Cash paid in acquisitions | (14,304 | ) | (231 | ) | (4,077 | ) | |||||
Cash acquired in acquisitions | 174,496 | 5,038 | 207 | ||||||||
Net cash and cash equivalents provided by (used in) investing activities | (770,039 | ) | (885,753 | ) | (715,117 | ) | |||||
Financing activities: | |||||||||||
Net increase in noninterest-bearing deposits | 81,028 | 105,093 | 20,688 | ||||||||
Net increase in interest-bearing deposits | 351,084 | 502,018 | 394,865 | ||||||||
Net increase in short-term borrowings | 58,645 | 217,371 | 187,804 | ||||||||
Cash paid for contingent consideration | (565 | ) | (3,003 | ) | — | ||||||
Proceeds from issuance of long-term debt | 225,000 | 20,000 | 178,000 | ||||||||
Repayments of long-term debt | (40,000 | ) | (10,000 | ) | (57,500 | ) | |||||
Cash dividends paid - common stock | (58,001 | ) | (35,393 | ) | (33,672 | ) | |||||
Cancellation of warrants | (1,530 | ) | — | — | |||||||
Repurchase of common stock | — | — | (33,177 | ) | |||||||
Issuance of common stock | 2,347 | 1,037 | 1,429 | ||||||||
Vesting of restricted stock, net of shares held for taxes | (2,908 | ) | (1,567 | ) | (586 | ) | |||||
Net cash and cash equivalents provided by financing activities | 615,100 | 795,556 | 657,851 | ||||||||
Increase (decrease) in cash and cash equivalents | 61,826 | 20,136 | 36,577 | ||||||||
Cash and cash equivalents at beginning of the period | 199,373 | 179,237 | 142,660 | ||||||||
Cash and cash equivalents at end of the period | $ | 261,199 | $ | 199,373 | $ | 179,237 |
UNION BANKSHARES CORPORATION AND SUBSIDIARIES | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
YEARS ENDED DECEMBER 31, 2018, 2017, AND 2016 | |||||||||||
(Dollars in thousands) | |||||||||||
2018 | 2017 | 2016 | |||||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash payments for: | |||||||||||
Interest | $ | 99,227 | $ | 47,775 | $ | 29,576 | |||||
Income taxes | 10,830 | 24,000 | 27,900 | ||||||||
Supplemental schedule of noncash investing and financing activities | |||||||||||
Transfers from loans (foreclosed properties) to foreclosed properties (loans) | 493 | 910 | 1,297 | ||||||||
Stock received as consideration for sale of loans held for investment | 28,913 | — | — | ||||||||
Securities transferred from HTM to AFS | 187,425 | — | — | ||||||||
Issuance of common stock in exchange for net assets in acquisition | 794,809 | — | 453 | ||||||||
Transactions related to acquisitions | |||||||||||
Assets acquired | 3,253,328 | 293 | 4,668 | ||||||||
Liabilities assumed (2) | 2,873,718 | 5,437 | 4,807 |
QUALITATIVE FACTORS | ||||
Portfolio | National / International | Local | ||
Experience and ability of lending team | Interest rates | Gross state product | ||
Pace of loan growth | Inflation | Unemployment rate | ||
Footprint and expansion | Unemployment | Home prices | ||
Execution of loan risk rating process | Level of economic activity | CRE prices | ||
Degree of credit oversight | Political and trade uncertainty | |||
Underwriting standards | Asset prices | |||
Delinquency levels in portfolio | ||||
Charge-off trends in portfolio | ||||
Credit concentrations / nature and volume of the portfolio |
Purchase Price: | ||||||
Fair value of shares of the Company's common stock issued & warrants converted | $ | 794,809 | ||||
Cash paid for Xenith stock options | 6,170 | |||||
Total purchase price | $ | 800,979 | ||||
Fair value of assets acquired: | ||||||
Cash and cash equivalents | $ | 174,218 | ||||
AFS securities | 295,782 | |||||
Restricted stock, at cost | 27,569 | |||||
Net loans | 2,453,856 | |||||
Premises and equipment | 46,077 | |||||
OREO | 5,250 | |||||
Core deposit intangibles | 38,470 | |||||
Other assets | 202,984 | |||||
Total assets | $ | 3,244,206 | ||||
Fair value of liabilities assumed: | ||||||
Deposits | $ | 2,549,683 | ||||
Short-term borrowings | 235,000 | |||||
Long-term borrowings | 55,542 | |||||
Other liabilities | 26,842 | |||||
Total liabilities | $ | 2,867,067 | ||||
Net assets acquired | $ | 377,139 | ||||
Preliminary goodwill | $ | 423,840 |
Contractually required principal and interest payments | $ | 114,270 | |
Nonaccretable difference | (19,800 | ) | |
Cash flows expected to be collected | 94,470 | ||
Accretable difference | (15,206 | ) | |
Fair value of loans acquired with a deterioration of credit quality | $ | 79,264 |
For the years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Total revenues | $ | 530,932 | $ | 470,484 | $ | 425,794 | |||||
Net income | $ | 176,473 | $ | 45,036 | $ | 138,960 | |||||
Earnings per share | $ | 2.68 | $ | 0.68 | $ | 2.23 |
For the years ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Loans (1) | $ | 17,145 | $ | 6,784 | $ | 5,218 | |||||
Buildings (2) | 228 | — | — | ||||||||
Core deposit intangible (3) | (11,464 | ) | (5,603 | ) | (6,930 | ) | |||||
Other amortizable intangibles (3) | (1,375 | ) | (485 | ) | (280 | ) | |||||
Borrowings (4) | (506 | ) | 170 | 458 | |||||||
Time deposits (5) | 2,553 | — | — | ||||||||
Leases (2) | 130 | — | — | ||||||||
Net impact to income before taxes | $ | 6,711 | $ | 866 | $ | (1,534 | ) |
Amortized | Gross Unrealized | Estimated | |||||||||||||
Cost | Gains | (Losses) | Fair Value | ||||||||||||
December 31, 2018 | |||||||||||||||
Obligations of states and political subdivisions | $ | 466,588 | $ | 3,844 | $ | (1,941 | ) | $ | 468,491 | ||||||
Corporate bonds | 167,561 | 1,118 | (983 | ) | 167,696 | ||||||||||
Mortgage-backed securities | 1,138,034 | 4,452 | (12,621 | ) | 1,129,865 | ||||||||||
Other securities | 8,769 | — | — | 8,769 | |||||||||||
Total available for sale securities | $ | 1,780,952 | $ | 9,414 | $ | (15,545 | ) | $ | 1,774,821 | ||||||
December 31, 2017 | |||||||||||||||
Obligations of states and political subdivisions | $ | 295,546 | $ | 6,842 | $ | (564 | ) | $ | 301,824 | ||||||
Corporate bonds | 113,625 | 1,131 | (876 | ) | 113,880 | ||||||||||
Mortgage-backed securities | 552,431 | 2,596 | (6,169 | ) | 548,858 | ||||||||||
Other securities | 9,737 | — | (77 | ) | 9,660 | ||||||||||
Total available for sale securities | $ | 971,339 | $ | 10,569 | $ | (7,686 | ) | $ | 974,222 |
Less than 12 months | More than 12 months | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 133,513 | $ | (1,566 | ) | $ | 10,145 | $ | (375 | ) | $ | 143,658 | $ | (1,941 | ) | ||||||||
Mortgage-backed securities | 306,038 | (3,480 | ) | 341,400 | (9,141 | ) | 647,438 | (12,621 | ) | ||||||||||||||
Corporate bonds and other securities | 35,478 | (315 | ) | 33,888 | (668 | ) | 69,366 | (983 | ) | ||||||||||||||
Total available for sale | $ | 475,029 | $ | (5,361 | ) | $ | 385,433 | $ | (10,184 | ) | $ | 860,462 | $ | (15,545 | ) | ||||||||
December 31, 2017 | |||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 25,790 | $ | (132 | ) | $ | 16,934 | $ | (432 | ) | $ | 42,724 | $ | (564 | ) | ||||||||
Mortgage-backed securities | 298,439 | (3,267 | ) | 136,298 | (2,902 | ) | 434,737 | (6,169 | ) | ||||||||||||||
Corporate bonds and other securities | 10,976 | (99 | ) | 44,408 | (854 | ) | 55,384 | (953 | ) | ||||||||||||||
Total available for sale | $ | 335,205 | $ | (3,498 | ) | $ | 197,640 | $ | (4,188 | ) | $ | 532,845 | $ | (7,686 | ) |
December 31, 2018 | December 31, 2017 | ||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||
Due in one year or less | $ | 22,653 | $ | 22,789 | $ | 25,179 | $ | 25,326 | |||||||
Due after one year through five years | 191,003 | 188,999 | 145,276 | 145,980 | |||||||||||
Due after five years through ten years | 218,211 | 217,304 | 223,210 | 226,251 | |||||||||||
Due after ten years | 1,349,085 | 1,345,729 | 577,674 | 576,665 | |||||||||||
Total securities available for sale | $ | 1,780,952 | $ | 1,774,821 | $ | 971,339 | $ | 974,222 |
Carrying | Gross Unrealized | Estimated | |||||||||||||
Value (1) | Gains | (Losses) | Fair Value | ||||||||||||
December 31, 2018 | |||||||||||||||
Obligations of states and political subdivisions | $ | 492,272 | $ | 7,375 | $ | (146 | ) | $ | 499,501 | ||||||
December 31, 2017 | |||||||||||||||
Obligations of states and political subdivisions | $ | 199,639 | $ | 4,014 | $ | (170 | ) | $ | 203,483 |
Less than 12 months | More than 12 months | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 43,206 | $ | (146 | ) | $ | — | $ | — | $ | 43,206 | $ | (146 | ) | |||||||||
December 31, 2017 | |||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 18,896 | $ | (139 | ) | $ | 1,084 | $ | (31 | ) | $ | 19,980 | $ | (170 | ) |
December 31, 2018 | December 31, 2017 | ||||||||||||||
Carrying Value (1) | Estimated Fair Value | Carrying Value (1) | Estimated Fair Value | ||||||||||||
Due in one year or less | $ | — | $ | — | $ | 3,221 | $ | 3,230 | |||||||
Due after one year through five years | 3,893 | 3,900 | 44,289 | 44,601 | |||||||||||
Due after five years through ten years | 3,480 | 3,507 | 79,114 | 80,532 | |||||||||||
Due after ten years | 484,899 | 492,094 | 73,015 | 75,120 | |||||||||||
Total securities held to maturity | $ | 492,272 | $ | 499,501 | $ | 199,639 | $ | 203,483 |
2018 | 2017 | 2016 | |||||||||
Realized gains (losses): | |||||||||||
Gross realized gains | $ | 4,221 | $ | 1,170 | $ | 302 | |||||
Gross realized losses | (3,838 | ) | (370 | ) | (97 | ) | |||||
Net realized gains | $ | 383 | $ | 800 | $ | 205 | |||||
Proceeds from sales of securities | $ | 515,764 | $ | 139,046 | $ | 69,516 |
2018 | 2017 | ||||||
Construction and Land Development | $ | 1,194,821 | $ | 948,791 | |||
Commercial Real Estate - Owner Occupied | 1,337,345 | 943,933 | |||||
Commercial Real Estate - Non-Owner Occupied | 2,467,410 | 1,713,659 | |||||
Multifamily Real Estate | 548,231 | 357,079 | |||||
Commercial & Industrial | 1,317,135 | 612,023 | |||||
Residential 1-4 Family - Commercial | 713,750 | 612,395 | |||||
Residential 1-4 Family - Mortgage | 600,578 | 485,690 | |||||
Auto | 301,943 | 282,474 | |||||
HELOC | 613,383 | 537,521 | |||||
Consumer | 379,694 | 408,667 | |||||
Other Commercial | 241,917 | 239,320 | |||||
Total loans held for investment, net (1) | $ | 9,716,207 | $ | 7,141,552 |
30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days and still Accruing | PCI | Nonaccrual | Current | Total Loans | |||||||||||||||||||||
Construction and Land Development | $ | 759 | $ | 6 | $ | 180 | $ | 8,654 | $ | 8,018 | $ | 1,177,204 | $ | 1,194,821 | |||||||||||||
Commercial Real Estate - Owner Occupied | 8,755 | 1,142 | 3,193 | 25,644 | 3,636 | 1,294,975 | 1,337,345 | ||||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 338 | 41 | — | 17,335 | 1,789 | 2,447,907 | 2,467,410 | ||||||||||||||||||||
Multifamily Real Estate | — | 146 | — | 88 | — | 547,997 | 548,231 | ||||||||||||||||||||
Commercial & Industrial | 3,353 | 389 | 132 | 2,156 | 1,524 | 1,309,581 | 1,317,135 | ||||||||||||||||||||
Residential 1-4 Family - Commercial | 6,619 | 1,577 | 1,409 | 13,707 | 2,481 | 687,957 | 713,750 | ||||||||||||||||||||
Residential 1-4 Family - Mortgage | 12,049 | 5,143 | 2,437 | 16,766 | 7,276 | 556,907 | 600,578 | ||||||||||||||||||||
Auto | 3,320 | 403 | 195 | 7 | 576 | 297,442 | 301,943 | ||||||||||||||||||||
HELOC | 4,611 | 1,644 | 440 | 5,115 | 1,518 | 600,055 | 613,383 | ||||||||||||||||||||
Consumer and all other(1) | 1,630 | 1,096 | 870 | 749 | 135 | 617,131 | 621,611 | ||||||||||||||||||||
Total loans held for investment | $ | 41,434 | $ | 11,587 | $ | 8,856 | $ | 90,221 | $ | 26,953 | $ | 9,537,156 | $ | 9,716,207 |
30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days and still Accruing | PCI | Nonaccrual | Current | Total Loans | |||||||||||||||||||||
Construction and Land Development | $ | 1,248 | $ | 898 | $ | 1,340 | $ | 2,838 | $ | 5,610 | $ | 936,857 | $ | 948,791 | |||||||||||||
Commercial Real Estate - Owner Occupied | 444 | 81 | — | 14,790 | 2,708 | 925,910 | 943,933 | ||||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 187 | 84 | 194 | 6,610 | 2,992 | 1,703,592 | 1,713,659 | ||||||||||||||||||||
Multifamily Real Estate | — | — | — | 80 | — | 356,999 | 357,079 | ||||||||||||||||||||
Commercial & Industrial | 1,147 | 109 | 214 | 408 | 316 | 609,829 | 612,023 | ||||||||||||||||||||
Residential 1-4 Family - Commercial | 1,682 | 700 | 579 | 9,414 | 1,085 | 598,935 | 612,395 | ||||||||||||||||||||
Residential 1-4 Family - Mortgage | 3,838 | 2,541 | 546 | 3,733 | 6,269 | 468,763 | 485,690 | ||||||||||||||||||||
Auto | 3,541 | 185 | 40 | — | 413 | 278,295 | 282,474 | ||||||||||||||||||||
HELOC | 2,382 | 717 | 217 | 950 | 2,075 | 531,180 | 537,521 | ||||||||||||||||||||
Consumer and all other(1) | 2,404 | 2,052 | 402 | 198 | 275 | 642,656 | 647,987 | ||||||||||||||||||||
Total loans held for investment | $ | 16,873 | $ | 7,367 | $ | 3,532 | $ | 39,021 | $ | 21,743 | $ | 7,053,016 | $ | 7,141,552 |
30-89 Days Past Due | Greater than 90 Days | Current | Total | ||||||||||||
Construction and Land Development | $ | 108 | $ | 1,424 | $ | 7,122 | $ | 8,654 | |||||||
Commercial Real Estate - Owner Occupied | 658 | 4,281 | 20,705 | 25,644 | |||||||||||
Commercial Real Estate - Non-Owner Occupied | 61 | 1,810 | 15,464 | 17,335 | |||||||||||
Multifamily Real Estate | — | — | 88 | 88 | |||||||||||
Commercial & Industrial | 47 | 1,092 | 1,017 | 2,156 | |||||||||||
Residential 1-4 Family - Commercial | 931 | 3,464 | 9,312 | 13,707 | |||||||||||
Residential 1-4 Family - Mortgage | 1,899 | 2,412 | 12,455 | 16,766 | |||||||||||
Auto | — | — | 7 | 7 | |||||||||||
HELOC | 498 | 252 | 4,365 | 5,115 | |||||||||||
Consumer and all other(1) | 62 | 9 | 678 | 749 | |||||||||||
Total | $ | 4,264 | $ | 14,744 | $ | 71,213 | $ | 90,221 |
30-89 Days Past Due | Greater than 90 Days | Current | Total | ||||||||||||
Construction and Land Development | $ | 8 | $ | 57 | $ | 2,773 | $ | 2,838 | |||||||
Commercial Real Estate - Owner Occupied | 381 | 478 | 13,931 | 14,790 | |||||||||||
Commercial Real Estate - Non-Owner Occupied | 188 | 233 | 6,189 | 6,610 | |||||||||||
Multifamily Real Estate | — | — | 80 | 80 | |||||||||||
Commercial & Industrial | — | — | 408 | 408 | |||||||||||
Residential 1-4 Family - Commercial | 433 | 351 | 8,630 | 9,414 | |||||||||||
Residential 1-4 Family - Mortgage | 343 | 626 | 2,764 | 3,733 | |||||||||||
HELOC | 291 | 214 | 445 | 950 | |||||||||||
Consumer and all other(1) | — | — | 198 | 198 | |||||||||||
Total | $ | 1,644 | $ | 1,959 | $ | 35,418 | $ | 39,021 |
December 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||||||||||||
Loans without a specific allowance | |||||||||||||||||||||||
Construction and Land Development | $ | 10,290 | $ | 12,038 | $ | — | $ | 16,035 | $ | 16,214 | $ | — | |||||||||||
Commercial Real Estate - Owner Occupied | 8,386 | 9,067 | — | 5,427 | 5,527 | — | |||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 6,578 | 6,929 | — | 6,017 | 6,103 | — | |||||||||||||||||
Commercial & Industrial | 3,059 | 3,251 | — | 1,681 | 1,933 | — | |||||||||||||||||
Residential 1-4 Family - Commercial | 4,516 | 4,576 | — | 4,098 | 4,879 | — | |||||||||||||||||
Residential 1-4 Family - Mortgage | 8,504 | 9,180 | — | 9,512 | 9,786 | — | |||||||||||||||||
HELOC | 1,150 | 1,269 | — | 2,056 | 2,144 | — | |||||||||||||||||
Consumer and all other(1) | 508 | 580 | — | 567 | 734 | — | |||||||||||||||||
Total impaired loans without a specific allowance | $ | 42,991 | $ | 46,890 | $ | — | $ | 45,393 | $ | 47,320 | $ | — | |||||||||||
Loans with a specific allowance | |||||||||||||||||||||||
Construction and Land Development | $ | 372 | $ | 491 | $ | 63 | $ | 1,536 | $ | 1,573 | $ | 122 | |||||||||||
Commercial Real Estate - Owner Occupied | 4,304 | 4,437 | 359 | 1,161 | 1,161 | 94 | |||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 391 | 391 | 1 | — | — | — | |||||||||||||||||
Commercial & Industrial | 1,183 | 1,442 | 752 | 1,295 | 1,319 | 128 | |||||||||||||||||
Residential 1-4 Family - Commercial | 3,180 | 3,249 | 185 | 1,062 | 1,068 | 35 | |||||||||||||||||
Residential 1-4 Family - Mortgage | 5,329 | 5,548 | 374 | 1,953 | 2,070 | 36 | |||||||||||||||||
Auto | 576 | 830 | 231 | 413 | 577 | 2 | |||||||||||||||||
HELOC | 724 | 807 | 188 | 464 | 535 | 51 | |||||||||||||||||
Consumer and all other(1) | 178 | 467 | 64 | 204 | 309 | 35 | |||||||||||||||||
Total impaired loans with a specific allowance | $ | 16,237 | $ | 17,662 | $ | 2,217 | $ | 8,088 | $ | 8,612 | $ | 503 | |||||||||||
Total impaired loans | $ | 59,228 | $ | 64,552 | $ | 2,217 | $ | 53,481 | $ | 55,932 | $ | 503 |
December 31, 2018 | December 31, 2017 | December 31, 2016 | |||||||||||||||||||||
Average Investment | Interest Income Recognized | Average Investment | Interest Income Recognized | Average Investment | Interest Income Recognized | ||||||||||||||||||
Construction and Land Development | $ | 11,648 | $ | 234 | $ | 17,080 | $ | 590 | $ | 15,346 | $ | 681 | |||||||||||
Commercial Real Estate - Owner Occupied | 13,383 | 499 | 6,580 | 306 | 6,290 | 242 | |||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 7,157 | 246 | 6,083 | 172 | 4,188 | 134 | |||||||||||||||||
Commercial & Industrial | 4,672 | 232 | 3,208 | 150 | 2,800 | 95 | |||||||||||||||||
Residential 1-4 Family - Commercial | 7,904 | 264 | 5,428 | 190 | 6,225 | 205 | |||||||||||||||||
Residential 1-4 Family - Mortgage | 14,740 | 152 | 11,806 | 194 | 6,491 | 86 | |||||||||||||||||
Auto | 824 | 20 | 579 | 19 | 244 | 5 | |||||||||||||||||
HELOC | 2,000 | 23 | 2,659 | 36 | 1,513 | 19 | |||||||||||||||||
Consumer and all other(1) | 749 | 32 | 810 | 36 | 567 | 8 | |||||||||||||||||
Total impaired loans | $ | 63,077 | $ | 1,702 | $ | 54,233 | $ | 1,693 | $ | 43,664 | $ | 1,475 |
December 31, 2018 | December 31, 2017 | ||||||||||||||||||||
No. of Loans | Recorded Investment | Outstanding Commitment | No. of Loans | Recorded Investment | Outstanding Commitment | ||||||||||||||||
Performing | |||||||||||||||||||||
Construction and Land Development | 5 | $ | 2,496 | $ | — | 7 | $ | 2,803 | $ | — | |||||||||||
Commercial Real Estate - Owner Occupied | 8 | 2,783 | — | 5 | 2,221 | — | |||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 4 | 4,438 | — | 2 | 715 | — | |||||||||||||||
Commercial & Industrial | 4 | 978 | — | 12 | 2,057 | — | |||||||||||||||
Residential 1-4 Family - Commercial | 30 | 2,887 | — | 16 | 1,048 | — | |||||||||||||||
Residential 1-4 Family - Mortgage | 30 | 5,070 | — | 24 | 5,194 | — | |||||||||||||||
HELOC | 2 | 58 | — | 1 | 20 | — | |||||||||||||||
Consumer and all other (1) | 2 | 491 | — | 1 | 495 | — | |||||||||||||||
Total performing | 85 | $ | 19,201 | $ | — | 68 | $ | 14,553 | $ | — | |||||||||||
Nonperforming | |||||||||||||||||||||
Construction and Land Development | 2 | $ | 3,474 | $ | — | 2 | $ | 702 | $ | — | |||||||||||
Commercial Real Estate - Owner Occupied | 2 | 198 | — | 2 | 134 | — | |||||||||||||||
Commercial & Industrial | 6 | 461 | — | 2 | 108 | — | |||||||||||||||
Residential 1-4 Family - Commercial | 1 | 60 | — | 5 | 558 | — | |||||||||||||||
Residential 1-4 Family - Mortgage | 15 | 3,135 | — | 7 | 1,264 | — | |||||||||||||||
HELOC | 2 | 62 | — | 1 | 59 | — | |||||||||||||||
Consumer and all other (1) | 1 | 7 | — | 1 | 24 | — | |||||||||||||||
Total nonperforming | 29 | $ | 7,397 | $ | — | 20 | $ | 2,849 | $ | — | |||||||||||
Total performing and nonperforming | 114 | $ | 26,598 | $ | — | 88 | $ | 17,402 | $ | — |
All Restructurings | |||||||||||||
2018 | 2017 | ||||||||||||
No. of Loans | Recorded Investment at Period End | No. of Loans | Recorded Investment at Period End | ||||||||||
Modified to interest only, at a market rate | |||||||||||||
Commercial & Industrial | — | $ | — | 5 | $ | 631 | |||||||
Total interest only at market rate of interest | — | $ | — | 5 | $ | 631 | |||||||
Term modification, at a market rate | |||||||||||||
Construction and Land Development | 4 | $ | 4,675 | 4 | $ | 1,564 | |||||||
Commercial Real Estate - Owner Occupied | 5 | 1,365 | 1 | 378 | |||||||||
Commercial Real Estate - Non-Owner Occupied | 1 | 1,089 | 2 | 715 | |||||||||
Commercial & Industrial | 3 | 334 | 5 | 1,040 | |||||||||
Residential 1-4 Family - Commercial | 2 | 219 | 5 | 764 | |||||||||
Residential 1-4 Family - Mortgage | 8 | 931 | 9 | 2,461 | |||||||||
Consumer and all other(1) | 1 | 13 | 2 | 519 | |||||||||
Total loan term extended at a market rate | 24 | $ | 8,626 | 28 | $ | 7,441 | |||||||
Term modification, below market rate | |||||||||||||
Commercial Real Estate - Owner Occupied | — | $ | — | 1 | $ | 837 | |||||||
Commercial Real Estate - Non-Owner Occupied | 1 | 2,782 | — | — | |||||||||
Commercial & Industrial | — | — | 2 | 78 | |||||||||
Residential 1-4 Family - Commercial | 10 | 1,064 | 5 | 183 | |||||||||
Residential 1-4 Family - Mortgage | 9 | 1,719 | 11 | 1,803 | |||||||||
HELOC | 2 | 46 | 2 | 79 | |||||||||
Total loan term extended at a below market rate | 22 | $ | 5,611 | 21 | $ | 2,980 | |||||||
Interest rate modification, below market rate | |||||||||||||
Residential 1-4 Family - Commercial | 1 | $ | 265 | — | $ | — | |||||||
Total interest only at below market rate of interest | 1 | $ | 265 | — | $ | — | |||||||
Total | 47 | $ | 14,502 | 54 | $ | 11,052 |
Year Ended December 31, 2018 | |||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||
Balance, beginning of the year | Recoveries credited to allowance | Loans charged off | Provision charged to operations | Balance, end of period | |||||||||||||||
Construction and Land Development | $ | 9,709 | $ | 447 | $ | (2,005 | ) | $ | (1,348 | ) | $ | 6,803 | |||||||
Commercial Real Estate - Owner Occupied | 2,931 | 610 | (709 | ) | 1,191 | 4,023 | |||||||||||||
Commercial Real Estate - Non-Owner Occupied | 7,544 | 100 | (94 | ) | 1,315 | 8,865 | |||||||||||||
Multifamily Real Estate | 1,092 | 5 | — | (448 | ) | 649 | |||||||||||||
Commercial & Industrial | 4,552 | 534 | (833 | ) | 3,383 | 7,636 | |||||||||||||
Residential 1-4 Family - Commercial | 4,437 | 353 | (176 | ) | (2,630 | ) | 1,984 | ||||||||||||
Residential 1-4 Family - Mortgage | 1,524 | 310 | (852 | ) | 218 | 1,200 | |||||||||||||
Auto | 975 | 436 | (1,074 | ) | 1,106 | 1,443 | |||||||||||||
HELOC | 1,360 | 636 | (1,206 | ) | 507 | 1,297 | |||||||||||||
Consumer and all other(1) | 4,084 | 1,737 | (9,281 | ) | 10,605 | 7,145 | |||||||||||||
Total | $ | 38,208 | $ | 5,168 | $ | (16,230 | ) | $ | 13,899 | $ | 41,045 |
Year Ended December 31, 2017 | |||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||
Balance, beginning of the year | Recoveries credited to allowance | Loans charged off | Provision charged to operations | Balance, end of period | |||||||||||||||
Construction and Land Development | $ | 10,055 | $ | 206 | $ | (2,190 | ) | $ | 1,638 | $ | 9,709 | ||||||||
Commercial Real Estate - Owner Occupied | 3,801 | 171 | (46 | ) | (995 | ) | 2,931 | ||||||||||||
Commercial Real Estate - Non-Owner Occupied | 6,622 | 2 | (1,180 | ) | 2,100 | 7,544 | |||||||||||||
Multifamily Real Estate | 1,236 | — | — | (144 | ) | 1,092 | |||||||||||||
Commercial & Industrial | 4,627 | 483 | (2,277 | ) | 1,719 | 4,552 | |||||||||||||
Residential 1-4 Family - Commercial | 3,698 | 329 | (463 | ) | 873 | 4,437 | |||||||||||||
Residential 1-4 Family - Mortgage | 2,701 | 102 | (588 | ) | (691 | ) | 1,524 | ||||||||||||
Auto | 946 | 459 | (1,038 | ) | 608 | 975 | |||||||||||||
HELOC | 1,328 | 314 | (1,019 | ) | 737 | 1,360 | |||||||||||||
Consumer and all other(1) | 2,178 | 1,189 | (4,509 | ) | 5,226 | 4,084 | |||||||||||||
Total | $ | 37,192 | $ | 3,255 | $ | (13,310 | ) | $ | 11,071 | $ | 38,208 |
Year Ended December 31, 2016 | |||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||
Balance, beginning of the year | Recoveries credited to allowance | Loans charged off | Provision charged to operations | Balance, end of period | |||||||||||||||
Construction and Land Development | $ | 6,040 | $ | 505 | $ | (958 | ) | $ | 4,468 | $ | 10,055 | ||||||||
Commercial Real Estate - Owner Occupied | 4,614 | 152 | (809 | ) | (156 | ) | 3,801 | ||||||||||||
Commercial Real Estate - Non-Owner Occupied | 6,929 | 80 | (1 | ) | (386 | ) | 6,622 | ||||||||||||
Multifamily Real Estate | 1,606 | — | — | (370 | ) | 1,236 | |||||||||||||
Commercial & Industrial | 3,163 | 483 | (1,920 | ) | 2,901 | 4,627 | |||||||||||||
Residential 1-4 Family - Commercial | 3,025 | 318 | (716 | ) | 1,071 | 3,698 | |||||||||||||
Residential 1-4 Family - Mortgage | 2,389 | 267 | (184 | ) | 229 | 2,701 | |||||||||||||
Auto | 1,703 | 327 | (1,052 | ) | (32 | ) | 946 | ||||||||||||
HELOC | 2,934 | 459 | (1,457 | ) | (608 | ) | 1,328 | ||||||||||||
Consumer and all other(1) | 1,644 | 434 | (1,458 | ) | 1,558 | 2,178 | |||||||||||||
Total | $ | 34,047 | $ | 3,025 | $ | (8,555 | ) | $ | 8,675 | $ | 37,192 |
December 31, 2018 | |||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | Loans collectively evaluated for impairment | Loans acquired with deteriorated credit quality | Total | ||||||||||||||||||||||||||||
Loans | ALL | Loans | ALL | Loans | ALL | Loans | ALL | ||||||||||||||||||||||||
Construction and Land Development | $ | 10,662 | $ | 63 | $ | 1,175,505 | $ | 6,740 | $ | 8,654 | $ | — | $ | 1,194,821 | $ | 6,803 | |||||||||||||||
Commercial Real Estate - Owner Occupied | 12,690 | 359 | 1,299,011 | 3,664 | 25,644 | — | 1,337,345 | 4,023 | |||||||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 6,969 | 1 | 2,443,106 | 8,864 | 17,335 | — | 2,467,410 | 8,865 | |||||||||||||||||||||||
Multifamily Real Estate | — | — | 548,143 | 649 | 88 | — | 548,231 | 649 | |||||||||||||||||||||||
Commercial & Industrial | 4,242 | 752 | 1,310,737 | 6,884 | 2,156 | — | 1,317,135 | 7,636 | |||||||||||||||||||||||
Residential 1-4 Family - Commercial | 7,696 | 185 | 692,347 | 1,799 | 13,707 | — | 713,750 | 1,984 | |||||||||||||||||||||||
Residential 1-4 Family - Mortgage | 13,833 | 374 | 569,979 | 826 | 16,766 | — | 600,578 | 1,200 | |||||||||||||||||||||||
Auto | 576 | 231 | 301,360 | 1,212 | 7 | — | 301,943 | 1,443 | |||||||||||||||||||||||
HELOC | 1,874 | 188 | 606,394 | 1,109 | 5,115 | — | 613,383 | 1,297 | |||||||||||||||||||||||
Consumer and all other(1) | 686 | 64 | 620,176 | 7,081 | 749 | — | 621,611 | 7,145 | |||||||||||||||||||||||
Total loans held for investment, net | $ | 59,228 | $ | 2,217 | $ | 9,566,758 | $ | 38,828 | $ | 90,221 | $ | — | $ | 9,716,207 | $ | 41,045 |
December 31, 2017 | |||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | Loans collectively evaluated for impairment | Loans acquired with deteriorated credit quality | Total | ||||||||||||||||||||||||||||
Loans | ALL | Loans | ALL | Loans | ALL | Loans | ALL | ||||||||||||||||||||||||
Construction and Land Development | $ | 17,571 | $ | 122 | $ | 928,382 | $ | 9,587 | $ | 2,838 | $ | — | $ | 948,791 | $ | 9,709 | |||||||||||||||
Commercial Real Estate - Owner Occupied | 6,588 | 94 | 922,555 | 2,837 | 14,790 | — | 943,933 | 2,931 | |||||||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 6,017 | — | 1,701,032 | 7,544 | 6,610 | — | 1,713,659 | 7,544 | |||||||||||||||||||||||
Multifamily Real Estate | — | — | 356,999 | 1,092 | 80 | — | 357,079 | 1,092 | |||||||||||||||||||||||
Commercial & Industrial | 2,976 | 128 | 608,639 | 4,424 | 408 | — | 612,023 | 4,552 | |||||||||||||||||||||||
Residential 1-4 Family - Commercial | 5,160 | 35 | 597,821 | 4,402 | 9,414 | — | 612,395 | 4,437 | |||||||||||||||||||||||
Residential 1-4 Family - Mortgage | 11,465 | 36 | 470,492 | 1,488 | 3,733 | — | 485,690 | 1,524 | |||||||||||||||||||||||
Auto | 413 | 2 | 282,061 | 973 | — | — | 282,474 | 975 | |||||||||||||||||||||||
HELOC | 2,520 | 51 | 534,051 | 1,309 | 950 | — | 537,521 | 1,360 | |||||||||||||||||||||||
Consumer and all other(1) | 771 | 35 | 647,018 | 4,049 | 198 | — | 647,987 | 4,084 | |||||||||||||||||||||||
Total loans held for investment, net | $ | 53,481 | $ | 503 | $ | 7,049,050 | $ | 37,705 | $ | 39,021 | $ | — | $ | 7,141,552 | $ | 38,208 |
Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
Construction and Land Development | $ | 1,130,577 | $ | 43,894 | $ | 11,696 | $ | — | $ | 1,186,167 | |||||||||
Commercial Real Estate - Owner Occupied | 1,231,422 | 50,939 | 29,340 | — | 1,311,701 | ||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 2,425,500 | 17,648 | 6,927 | — | 2,450,075 | ||||||||||||||
Multifamily Real Estate | 537,572 | 10,571 | — | — | 548,143 | ||||||||||||||
Commercial & Industrial | 1,273,549 | 34,864 | 6,566 | — | 1,314,979 | ||||||||||||||
Residential 1-4 Family - Commercial | 677,109 | 17,086 | 5,848 | — | 700,043 | ||||||||||||||
Residential 1-4 Family - Mortgage | 554,192 | 14,855 | 14,765 | — | 583,812 | ||||||||||||||
Auto | 296,907 | 3,590 | 1,439 | — | 301,936 | ||||||||||||||
HELOC | 598,444 | 6,316 | 3,508 | — | 608,268 | ||||||||||||||
Consumer and all other(1) | 618,730 | 1,411 | 721 | — | 620,862 | ||||||||||||||
Total | $ | 9,344,002 | $ | 201,174 | $ | 80,810 | $ | — | $ | 9,625,986 |
Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
Construction and Land Development | $ | 869,111 | $ | 62,517 | $ | 14,325 | $ | — | $ | 945,953 | |||||||||
Commercial Real Estate - Owner Occupied | 872,130 | 52,268 | 4,745 | — | 929,143 | ||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 1,681,314 | 19,899 | 5,836 | — | 1,707,049 | ||||||||||||||
Multifamily Real Estate | 349,625 | 7,374 | — | — | 356,999 | ||||||||||||||
Commercial & Industrial | 595,923 | 13,533 | 2,159 | — | 611,615 | ||||||||||||||
Residential 1-4 Family - Commercial | 587,169 | 12,117 | 3,650 | 45 | 602,981 | ||||||||||||||
Residential 1-4 Family - Mortgage | 470,646 | 7,190 | 1,642 | 2,479 | 481,957 | ||||||||||||||
Auto | 278,063 | 4,131 | 119 | 161 | 282,474 | ||||||||||||||
HELOC | 531,358 | 3,867 | 857 | 489 | 536,571 | ||||||||||||||
Consumer and all other(1) | 645,187 | 1,758 | 781 | 63 | 647,789 | ||||||||||||||
Total | $ | 6,880,526 | $ | 184,654 | $ | 34,114 | $ | 3,237 | $ | 7,102,531 |
Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
Construction and Land Development | $ | 1,835 | $ | 1,308 | $ | 5,511 | $ | — | $ | 8,654 | |||||||||
Commercial Real Estate - Owner Occupied | 8,347 | 6,685 | 10,612 | — | 25,644 | ||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 4,789 | 7,992 | 4,554 | — | 17,335 | ||||||||||||||
Multifamily Real Estate | — | 88 | — | — | 88 | ||||||||||||||
Commercial & Industrial | 762 | 134 | 1,260 | — | 2,156 | ||||||||||||||
Residential 1-4 Family - Commercial | 6,512 | 2,771 | 4,424 | — | 13,707 | ||||||||||||||
Residential 1-4 Family - Mortgage | 9,894 | 1,030 | 5,842 | — | 16,766 | ||||||||||||||
Auto | 7 | — | — | — | 7 | ||||||||||||||
HELOC | 3,438 | 1,031 | 646 | — | 5,115 | ||||||||||||||
Consumer and all other(1) | 74 | 660 | 15 | — | 749 | ||||||||||||||
Total | $ | 35,658 | $ | 21,699 | $ | 32,864 | $ | — | $ | 90,221 |
Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
Construction and Land Development | $ | 1,462 | $ | 1,260 | $ | 116 | $ | — | $ | 2,838 | |||||||||
Commercial Real Estate - Owner Occupied | 4,958 | 7,486 | 2,346 | — | 14,790 | ||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 3,920 | 1,394 | 1,296 | — | 6,610 | ||||||||||||||
Multifamily Real Estate | — | 80 | — | — | 80 | ||||||||||||||
Commercial & Industrial | 85 | 123 | 200 | — | 408 | ||||||||||||||
Residential 1-4 Family - Commercial | 5,234 | 2,877 | 1,303 | — | 9,414 | ||||||||||||||
Residential 1-4 Family - Mortgage | 2,764 | 329 | 71 | 569 | 3,733 | ||||||||||||||
HELOC | 446 | 291 | 94 | 119 | 950 | ||||||||||||||
Consumer and all other(1) | 148 | 41 | 9 | — | 198 | ||||||||||||||
Total | $ | 19,017 | $ | 13,881 | $ | 5,435 | $ | 688 | $ | 39,021 |
For the year ended December 31, | |||||||
2018 | 2017 | ||||||
Balance at beginning of period | $ | 14,563 | $ | 19,739 | |||
Additions | 12,225 | — | |||||
Accretion | (8,654 | ) | (6,426 | ) | |||
Reclass of nonaccretable difference due to improvement in expected cash flows | 1,876 | 2,237 | |||||
Measurement period adjustment | 3,974 | — | |||||
Other, net (1) | 7,217 | (987 | ) | ||||
Balance at end of period | $ | 31,201 | $ | 14,563 |
2018 | 2017 | ||||||
Land | $ | 41,494 | $ | 29,706 | |||
Land improvements and buildings | 119,649 | 99,199 | |||||
Leasehold improvements | 10,266 | 9,712 | |||||
Furniture and equipment | 62,154 | 56,000 | |||||
Construction in progress | 6,956 | 8,509 | |||||
Total | 240,519 | 203,126 | |||||
Less accumulated depreciation and amortization | 93,552 | 83,522 | |||||
Bank premises and equipment, net | $ | 146,967 | $ | 119,604 |
2019 | $ | 11,805 | |
2020 | 10,061 | ||
2021 | 8,273 | ||
2022 | 7,032 | ||
2023 | 6,270 | ||
Thereafter | 18,329 | ||
Total of future payments | $ | 61,770 |
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||
December 31, 2018 | |||||||||||
Amortizable core deposit intangibles | $ | 95,152 | $ | 57,293 | $ | 37,859 | |||||
Other amortizable intangibles | 12,695 | 1,870 | 10,825 | ||||||||
December 31, 2017 | |||||||||||
Amortizable core deposit intangibles | $ | 56,046 | $ | 45,193 | $ | 10,853 | |||||
Other amortizable intangibles | 4,715 | 765 | 3,950 |
2019 | $ | 11,092 | |
2020 | 9,228 | ||
2021 | 7,438 | ||
2022 | 5,864 | ||
2023 | 4,871 | ||
Thereafter | 10,192 | ||
Total estimated amortization expense | $ | 48,685 |
2018 | 2017 | ||||||
Interest-bearing deposits: | |||||||
NOW accounts | $ | 2,288,523 | $ | 1,929,416 | |||
Money market accounts | 2,875,301 | 1,685,174 | |||||
Savings accounts | 622,823 | 546,274 | |||||
Time deposits of $250,000 and over | 292,224 | 226,205 | |||||
Other time deposits | 1,797,482 | 1,102,441 | |||||
Total interest-bearing deposits | $ | 7,876,353 | $ | 5,489,510 |
2019 | $ | 1,197,966 | |
2020 | 558,280 | ||
2021 | 140,717 | ||
2022 | 107,898 | ||
2023 | 84,837 | ||
Thereafter | 8 | ||
Total scheduled maturities of time deposits | $ | 2,089,706 |
2018 | 2017 | ||||||
Securities sold under agreements to repurchase | $ | 39,197 | $ | 49,152 | |||
FHLB advances | 1,043,600 | 745,000 | |||||
Other short-term borrowings | 5,000 | — | |||||
Total short-term borrowings | $ | 1,087,797 | $ | 794,152 | |||
Maximum month-end outstanding balance | $ | 1,087,797 | $ | 794,152 | |||
Average outstanding balance during the period | 968,014 | 602,553 | |||||
Average interest rate | 1.91 | % | 1.00 | % | |||
Average interest rate at end of period | 2.43 | % | 1.32 | % |
Trust Preferred Capital Securities(1) | Investment(1) | Spread to 3-Month LIBOR | Rate(2) | Maturity | |||||||||||
Trust Preferred Capital Note - Statutory Trust I | $ | 22,500,000 | $ | 696,000 | 2.75 | % | 5.56 | % | 6/17/2034 | ||||||
Trust Preferred Capital Note - Statutory Trust II | 36,000,000 | 1,114,000 | 1.40 | % | 4.21 | % | 6/15/2036 | ||||||||
VFG Limited Liability Trust I Indenture | 20,000,000 | 619,000 | 2.73 | % | 5.54 | % | 3/18/2034 | ||||||||
FNB Statutory Trust II Indenture | 12,000,000 | 372,000 | 3.10 | % | 5.91 | % | 6/26/2033 | ||||||||
Gateway Capital Statutory Trust I | 8,000,000 | 248,000 | 3.10 | % | 5.91 | % | 9/17/2033 | ||||||||
Gateway Capital Statutory Trust II | 7,000,000 | 217,000 | 2.65 | % | 5.46 | % | 6/17/2034 | ||||||||
Gateway Capital Statutory Trust III | 15,000,000 | 464,000 | 1.50 | % | 4.31 | % | 5/30/2036 | ||||||||
Gateway Capital Statutory Trust IV | 25,000,000 | 774,000 | 1.55 | % | 4.36 | % | 7/30/2037 | ||||||||
Total | $ | 145,500,000 | $ | 4,504,000 |
Long-term Type | Spread to 3-Month LIBOR | Interest Rate (1) | Maturity Date | Advance Amount | |||||||
Adjustable Rate Credit | 0.44 | % | 3.25 | % | 8/23/2022 | $ | 55,000 | ||||
Adjustable Rate Credit | 0.45 | % | 3.26 | % | 11/23/2022 | 65,000 | |||||
Adjustable Rate Credit | 0.45 | % | 3.26 | % | 11/23/2022 | 10,000 | |||||
Adjustable Rate Credit | 0.45 | % | 3.26 | % | 11/23/2022 | 10,000 | |||||
Fixed Rate Convertible | — | 1.78 | % | 10/26/2028 | 200,000 | ||||||
Fixed Rate Hybrid | — | 2.37 | % | 10/10/2019 | 25,000 | ||||||
Fixed Rate Hybrid | — | 1.58 | % | 5/18/2020 | 20,000 | ||||||
$ | 385,000 |
Long-term Type | Spread to 3-Month LIBOR | Interest Rate (1) | Maturity Date | Advance Amount | |||||||
Adjustable Rate Credit | 0.44 | % | 2.13 | % | 8/23/2022 | $ | 55,000 | ||||
Adjustable Rate Credit | 0.45 | % | 2.15 | % | 11/23/2022 | 65,000 | |||||
Adjustable Rate Credit | 0.45 | % | 2.15 | % | 11/23/2022 | 10,000 | |||||
Adjustable Rate Credit | 0.45 | % | 2.15 | % | 11/23/2022 | 10,000 | |||||
Fixed Rate | — | 3.75 | % | 7/30/2018 | 5,000 | ||||||
Fixed Rate | — | 3.97 | % | 7/30/2018 | 5,000 | ||||||
Fixed Rate Hybrid | — | 0.99 | % | 10/19/2018 | 30,000 | ||||||
Fixed Rate Hybrid | — | 1.58 | % | 5/18/2020 | 20,000 | ||||||
$ | 200,000 |
Trust Preferred Capital Notes | Subordinated Notes | FHLB Advances | Premium (Discount) | Prepayment Penalty | Total Long-term Borrowings | ||||||||||||||||||
2019 | $ | — | $ | — | $ | 25,000 | $ | (862 | ) | $ | (2,018 | ) | $ | 22,120 | |||||||||
2020 | — | — | 20,000 | (936 | ) | (2,074 | ) | 16,990 | |||||||||||||||
2021 | — | — | — | (1,006 | ) | (2,119 | ) | (3,125 | ) | ||||||||||||||
2022 | — | — | 140,000 | (1,029 | ) | (1,707 | ) | 137,264 | |||||||||||||||
2023 | — | — | — | (1,051 | ) | — | (1,051 | ) | |||||||||||||||
Thereafter | 150,004 | 158,500 | 200,000 | (12,221 | ) | — | 496,283 | ||||||||||||||||
Total Long-term borrowings | $ | 150,004 | $ | 158,500 | $ | 385,000 | $ | (17,105 | ) | $ | (7,918 | ) | $ | 668,481 |
2018 | 2017 | ||||||
Commitments with off-balance sheet risk: | |||||||
Commitments to extend credit (1) | $ | 3,167,085 | $ | 2,192,812 | |||
Standby letters of credit | 167,597 | 127,435 | |||||
Total commitments with off-balance sheet risk | $ | 3,334,682 | $ | 2,320,247 |
Pledged Assets as of December 31, 2018 | |||||||||||||||||||
Cash | AFS Securities(1) | HTM Securities(1) | Loans(2) | Total | |||||||||||||||
Public deposits | $ | — | $ | 293,169 | $ | 7,407 | $ | — | $ | 300,576 | |||||||||
Repurchase agreements | — | 55,269 | — | — | 55,269 | ||||||||||||||
FHLB advances | — | 488 | — | 3,337,289 | 3,337,777 | ||||||||||||||
Derivatives | 13,509 | 1,938 | — | — | 15,447 | ||||||||||||||
Other purposes | — | 23,217 | — | — | 23,217 | ||||||||||||||
Total pledged assets | $ | 13,509 | $ | 374,081 | $ | 7,407 | $ | 3,337,289 | $ | 3,732,286 |
Pledged Assets as of December 31, 2017 | |||||||||||||||||||
Cash | AFS Securities(1) | HTM Securities(1) | Loans(2) | Total | |||||||||||||||
Public deposits | $ | — | $ | 242,472 | $ | 197,482 | $ | — | $ | 439,954 | |||||||||
Repurchase agreements | — | 77,942 | — | — | 77,942 | ||||||||||||||
FHLB advances | — | 878 | — | 2,390,509 | 2,391,387 | ||||||||||||||
Derivatives | 23,870 | 3,656 | — | — | 27,526 | ||||||||||||||
Other purposes | — | 15,043 | — | — | 15,043 | ||||||||||||||
Total pledged assets | $ | 23,870 | $ | 339,991 | $ | 197,482 | $ | 2,390,509 | $ | 2,951,852 |
December 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
Derivative (2) | Derivative (2) | ||||||||||||||||||||||
Notional or Contractual Amount (1) | Assets | Liabilities | Notional or Contractual Amount (1) | Assets | Liabilities | ||||||||||||||||||
Derivatives designated as accounting hedges: | |||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Cash flow hedges | $ | 152,500 | $ | — | $ | 4,786 | $ | 152,500 | $ | 49 | $ | 8,005 | |||||||||||
Fair value hedges | 137,596 | 1,872 | 1,684 | 80,973 | 1,598 | 76 | |||||||||||||||||
Derivatives not designated as accounting hedges: | |||||||||||||||||||||||
Loan Swaps | |||||||||||||||||||||||
Pay fixed-receive floating interest rate swaps | 878,446 | 10,120 | 9,306 | 529,736 | — | 1,350 | |||||||||||||||||
Pay floating-receive fixed interest rate swaps | 878,446 | 9,306 | 10,120 | 529,736 | 1,350 | — | |||||||||||||||||
Other contracts: | |||||||||||||||||||||||
Interest rate lock commitments | — | — | — | 34,314 | 559 | — | |||||||||||||||||
Best efforts forward delivery commitments | — | — | — | 73,777 | 12 | — | |||||||||||||||||
December 31, 2018 | |||||||
Carrying Amount of Hedged Assets/(Liabilities) | Cumulative Amount of Basis Adjustments Included in the Carrying Amount of the Hedged Assets/(Liabilities) | ||||||
Line items on the Consolidated Balance Sheets in which the hedged item is included: | |||||||
Securities available-for-sale (1) (2) | $ | 224,241 | $ | 1,399 | |||
Loans | 87,596 | (1,572 | ) |
Unrealized Gains (Losses) on AFS Securities | Unrealized Gains (Losses) for AFS Securities Transferred to HTM | Change in Fair Value of Cash Flow Hedges | Unrealized Gains (Losses) on BOLI | Total | |||||||||||||||
Balance - December 31, 2017 | $ | 1,874 | $ | 2,705 | $ | (4,361 | ) | $ | (1,102 | ) | $ | (884 | ) | ||||||
Transfer of HTM securities to AFS securities(1) | 2,785 | (2,785 | ) | — | — | — | |||||||||||||
Cumulative effects from adoption of new accounting standards (2) (3) | 465 | 583 | (1,094 | ) | — | (46 | ) | ||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Other comprehensive income (loss) before reclassification | (10,711 | ) | — | 1,087 | — | (9,624 | ) | ||||||||||||
Amounts reclassified from AOCI into earnings | (362 | ) | (408 | ) | 975 | 76 | 281 | ||||||||||||
Net current period other comprehensive income (loss) | (11,073 | ) | (408 | ) | 2,062 | 76 | (9,343 | ) | |||||||||||
Balance - December 31, 2018 | $ | (5,949 | ) | $ | 95 | $ | (3,393 | ) | $ | (1,026 | ) | $ | (10,273 | ) |
Unrealized Gains (Losses) on AFS Securities | Unrealized Gains (Losses) for AFS Securities Transferred to HTM | Change in Fair Value of Cash Flow Hedges | Unrealized Gains (Losses) on BOLI | Total | |||||||||||||||
Balance - December 31, 2016 | $ | (542 | ) | $ | 3,377 | $ | (5,179 | ) | $ | (1,465 | ) | $ | (3,809 | ) | |||||
Other comprehensive income (loss) | 2,936 | — | (44 | ) | — | 2,892 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | (520 | ) | (672 | ) | 862 | 363 | 33 | ||||||||||||
Net current period other comprehensive income (loss) | 2,416 | (672 | ) | 818 | 363 | 2,925 | |||||||||||||
Balance - December 31, 2017 | $ | 1,874 | $ | 2,705 | $ | (4,361 | ) | $ | (1,102 | ) | $ | (884 | ) |
Unrealized Gains (Losses) on AFS Securities | Unrealized Gain for AFS Securities Transferred to HTM | Change in Fair Value of Cash Flow Hedges | Unrealized Gains (Losses) on BOLI | Total | |||||||||||||||
Balance - December 31, 2015 | $ | 7,777 | $ | 4,432 | $ | (5,957 | ) | $ | — | $ | 6,252 | ||||||||
Other comprehensive income (loss) | (8,186 | ) | — | 270 | (1,728 | ) | (9,644 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income | (133 | ) | (1,055 | ) | 508 | 263 | (417 | ) | |||||||||||
Net current period other comprehensive income (loss) | $ | (8,319 | ) | $ | (1,055 | ) | $ | 778 | $ | (1,465 | ) | $ | (10,061 | ) | |||||
Balance - December 31, 2016 | $ | (542 | ) | $ | 3,377 | $ | (5,179 | ) | $ | (1,465 | ) | $ | (3,809 | ) |
Actual | Required for Capital Adequacy Purposes | Required in Order to Be Well Capitalized Under PCA | |||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
As of December 31, 2018 | |||||||||||||||||||
Common equity Tier 1 capital to risk weighted assets: | |||||||||||||||||||
Consolidated | $ | 1,106,871 | 9.93 | % | $ | 501,608 | 4.50 | % | NA | NA | |||||||||
Union Bank & Trust | 1,378,039 | 12.40 | % | 500,224 | 4.50 | % | 722,546 | 6.50 | % | ||||||||||
Tier 1 capital to risk weighted assets: | |||||||||||||||||||
Consolidated | 1,236,709 | 11.09 | % | 668,817 | 6.00 | % | NA | NA | |||||||||||
Union Bank & Trust | 1,378,039 | 12.40 | % | 666,965 | 6.00 | % | 889,287 | 8.00 | % | ||||||||||
Total capital to risk weighted assets: | |||||||||||||||||||
Consolidated | 1,435,711 | 12.88 | % | 891,753 | 8.00 | % | NA | NA | |||||||||||
Union Bank & Trust | 1,419,984 | 12.77 | % | 889,289 | 8.00 | % | 1,111,612 | 10.00 | % | ||||||||||
Tier 1 capital to average adjusted assets: | |||||||||||||||||||
Consolidated | 1,236,709 | 9.71 | % | 509,678 | 4.00 | % | NA | NA | |||||||||||
Union Bank & Trust | 1,378,039 | 10.84 | % | 508,412 | 4.00 | % | 635,515 | 5.00 | % | ||||||||||
As of December 31, 2017 | |||||||||||||||||||
Common equity Tier 1 capital to risk weighted assets: | |||||||||||||||||||
Consolidated | $ | 737,204 | 9.04 | % | $ | 367,073 | 4.50 | % | NA | NA | |||||||||
Union Bank & Trust | 947,432 | 11.66 | % | 365,616 | 4.50 | % | 528,111 | 6.50 | % | ||||||||||
Tier 1 capital to risk weighted assets: | |||||||||||||||||||
Consolidated | 826,979 | 10.14 | % | 489,428 | 6.00 | % | NA | NA | |||||||||||
Union Bank & Trust | 947,432 | 11.66 | % | 487,488 | 6.00 | % | 649,983 | 8.00 | % | ||||||||||
Total capital to risk weighted assets: | |||||||||||||||||||
Consolidated | 1,013,788 | 12.43 | % | 652,573 | 8.00 | % | NA | NA | |||||||||||
Union Bank & Trust | 986,040 | 12.14 | % | 649,983 | 8.00 | % | 812,478 | 10.00 | % | ||||||||||
Tier 1 capital to average adjusted assets: | |||||||||||||||||||
Consolidated | 826,979 | 9.42 | % | 351,230 | 4.00 | % | NA | NA | |||||||||||
Union Bank & Trust | 947,432 | 10.82 | % | 350,126 | 4.00 | % | 437,657 | 5.00 | % |
Level 1 | Valuation is based on quoted prices in active markets for identical assets and liabilities. | |
Level 2 | Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the markets. | |
Level 3 | Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. These unobservable inputs reflect the Company’s assumptions about what market participants would use and information that is reasonably available under the circumstances without undue cost and effort. |
Fair Value Measurements at December 31, 2018 using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Level 1 | Level 2 | Level 3 | Balance | ||||||||||||
ASSETS | |||||||||||||||
AFS securities: | |||||||||||||||
Obligations of states and political subdivisions | $ | — | $ | 468,491 | $ | — | $ | 468,491 | |||||||
Corporate bonds | — | 167,696 | — | 167,696 | |||||||||||
Mortgage-backed securities | — | 1,129,865 | — | 1,129,865 | |||||||||||
Other securities | — | 8,769 | — | 8,769 | |||||||||||
Derivatives: | |||||||||||||||
Interest rate swap | — | 19,426 | — | 19,426 | |||||||||||
Fair value hedges | — | 1,872 | — | 1,872 | |||||||||||
LIABILITIES | |||||||||||||||
Derivatives: | |||||||||||||||
Interest rate swap | $ | — | $ | 19,426 | $ | — | $ | 19,426 | |||||||
Cash flow hedges | — | 4,786 | — | 4,786 | |||||||||||
Fair value hedges | — | 1,684 | — | 1,684 |
Fair Value Measurements at December 31, 2017 using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Level 1 | Level 2 | Level 3 | Balance | ||||||||||||
ASSETS | |||||||||||||||
AFS securities: | |||||||||||||||
Obligations of states and political subdivisions | $ | — | $ | 301,824 | $ | — | $ | 301,824 | |||||||
Corporate bonds | — | 113,880 | — | 113,880 | |||||||||||
Mortgage-backed securities | — | 548,858 | — | 548,858 | |||||||||||
Other securities | — | 9,660 | — | 9,660 | |||||||||||
Loans held for sale | — | 40,662 | — | 40,662 | |||||||||||
Derivatives: | |||||||||||||||
Interest rate swap | — | 1,350 | — | 1,350 | |||||||||||
Cash flow hedges | — | 49 | — | 49 | |||||||||||
Fair value hedges | — | 1,598 | — | 1,598 | |||||||||||
Interest rate lock commitments | — | — | 559 | 559 | |||||||||||
Best efforts forward delivery commitments | — | — | 12 | 12 | |||||||||||
LIABILITIES | |||||||||||||||
Derivatives: | |||||||||||||||
Interest rate swap | $ | — | $ | 1,350 | $ | — | $ | 1,350 | |||||||
Cash flow hedges | — | 8,005 | — | 8,005 | |||||||||||
Fair value hedges | — | 76 | — | 76 |
Fair Value Measurements at December 31, 2018 using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Level 1 | Level 2 | Level 3 | Balance | ||||||||||||
ASSETS | |||||||||||||||
Impaired loans | $ | — | $ | — | $ | 3,734 | $ | 3,734 | |||||||
Foreclosed properties | — | — | 6,722 | 6,722 | |||||||||||
Former bank premises | — | — | 2,090 | 2,090 |
Fair Value Measurements at December 31, 2017 using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Level 1 | Level 2 | Level 3 | Balance | ||||||||||||
ASSETS | |||||||||||||||
Impaired loans | $ | — | $ | — | $ | 3,229 | $ | 3,229 | |||||||
Foreclosed properties | — | — | 5,253 | 5,253 | |||||||||||
Former bank premises | — | — | 1,383 | 1,383 |
Fair Value Measurements at December 31, 2018 using | |||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total Fair Value | ||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Balance | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 261,199 | $ | 261,199 | $ | — | $ | — | $ | 261,199 | |||||||||
AFS securities | 1,774,821 | — | 1,774,821 | — | 1,774,821 | ||||||||||||||
HTM securities | 492,272 | — | 499,501 | — | 499,501 | ||||||||||||||
Restricted stock | 124,602 | — | 124,602 | — | 124,602 | ||||||||||||||
Net loans | 9,675,162 | — | — | 9,534,717 | 9,534,717 | ||||||||||||||
Derivatives: | |||||||||||||||||||
Interest rate swap | 19,426 | — | 19,426 | — | 19,426 | ||||||||||||||
Fair value hedges | 1,872 | — | 1,872 | — | 1,872 | ||||||||||||||
Accrued interest receivable | 46,062 | — | 46,062 | — | 46,062 | ||||||||||||||
BOLI | 263,034 | — | 263,034 | — | 263,034 | ||||||||||||||
LIABILITIES | |||||||||||||||||||
Deposits | $ | 9,970,960 | $ | — | $ | 9,989,788 | $ | — | $ | 9,989,788 | |||||||||
Borrowings | 1,756,278 | — | 1,742,038 | — | 1,742,038 | ||||||||||||||
Accrued interest payable | 5,284 | — | 5,284 | — | 5,284 | ||||||||||||||
Derivatives: | |||||||||||||||||||
Interest rate swap | 19,426 | — | 19,426 | — | 19,426 | ||||||||||||||
Cash flow hedges | 4,786 | — | 4,786 | — | 4,786 | ||||||||||||||
Fair value hedges | 1,684 | — | 1,684 | — | 1,684 |
Fair Value Measurements at December 31, 2017 using | |||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total Fair Value | ||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Balance | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 199,373 | $ | 199,373 | $ | — | $ | — | $ | 199,373 | |||||||||
AFS securities | 974,222 | — | 974,222 | — | 974,222 | ||||||||||||||
HTM securities | 199,639 | — | 203,483 | — | 203,483 | ||||||||||||||
Restricted stock | 75,283 | — | 75,283 | — | 75,283 | ||||||||||||||
Loans held for sale | 40,662 | — | 40,662 | — | 40,662 | ||||||||||||||
Net loans | 7,103,344 | — | — | 7,117,593 | 7,117,593 | ||||||||||||||
Derivatives: | |||||||||||||||||||
Interest rate swap | 1,350 | — | 1,350 | — | 1,350 | ||||||||||||||
Cash flow hedges | 49 | — | 49 | — | 49 | ||||||||||||||
Fair value hedges | 1,598 | — | 1,598 | — | 1,598 | ||||||||||||||
Interest rate lock commitments | 559 | — | — | 559 | 559 | ||||||||||||||
Best efforts forward delivery commitments | 12 | — | — | 12 | 12 | ||||||||||||||
Accrued interest receivable | 26,427 | — | 26,427 | — | 26,427 | ||||||||||||||
BOLI | 182,854 | — | 182,854 | — | 182,854 | ||||||||||||||
LIABILITIES | |||||||||||||||||||
Deposits | $ | 6,991,718 | $ | — | $ | 6,977,845 | $ | — | $ | 6,977,845 | |||||||||
Borrowings | 1,219,414 | — | 1,198,645 | — | 1,198,645 | ||||||||||||||
Accrued interest payable | 2,538 | — | 2,538 | — | 2,538 | ||||||||||||||
Derivatives: | |||||||||||||||||||
Interest rate swap | 1,350 | — | 1,350 | — | 1,350 | ||||||||||||||
Cash flow hedges | 8,005 | — | 8,005 | — | 8,005 | ||||||||||||||
Fair value hedges | 76 | — | 76 | — | 76 |
2018 | 2017 | 2016 | |||||||||
Noninterest income: | |||||||||||
Deposit Service Charges (1): | |||||||||||
Overdraft fees, net | $ | 21,052 | $ | 15,788 | $ | 15,082 | |||||
Maintenance fees & other | 4,387 | 3,062 | 3,086 | ||||||||
Other service charges and fees (1) | 5,603 | 4,593 | 4,445 | ||||||||
Interchange fees, net (1) | 18,803 | 14,974 | 14,058 | ||||||||
Fiduciary and asset management fees (1): | |||||||||||
Trust asset management fees | 5,536 | 5,128 | 4,812 | ||||||||
Registered advisor management fees, net | 6,589 | 2,692 | 1,554 | ||||||||
Brokerage management fees, net | 4,025 | 3,425 | 3,833 | ||||||||
Gains (losses) on securities transactions, net | 383 | 800 | 205 | ||||||||
Bank owned life insurance income | 7,198 | 6,144 | 5,513 | ||||||||
Loan-related interest rate swap fees | 3,554 | 3,051 | 4,254 | ||||||||
Gain on Shore Premier sale | 19,966 | — | — | ||||||||
Other operating income (2) | 7,145 | 2,772 | 3,007 | ||||||||
Total noninterest income (3) | $ | 104,241 | $ | 62,429 | $ | 59,849 |
2018 | 2017 | 2016 | |||||||||
401(k) Plan | $ | 4,592 | $ | 3,505 | $ | 3,263 | |||||
ESOP | 1,005 | 1,255 | 1,425 | ||||||||
Cash | 1,509 | 1,461 | 1,496 | ||||||||
Total | $ | 7,106 | $ | 6,221 | $ | 6,184 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Stock-based compensation expense | $ | 6,132 | $ | 4,648 | $ | 3,270 | |||||
Reduction of income tax expense | 1,287 | 1,467 | 1,104 | ||||||||
Per share compensation cost | $ | 0.07 | $ | 0.06 | $ | 0.05 |
Stock Options (shares) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||||
Outstanding as of December 31, 2017 | 121,743 | $ | 13.93 | |||||||||
Granted | — | — | ||||||||||
Exercised | (72,743 | ) | 13.51 | |||||||||
Forfeited | — | — | ||||||||||
Expired | (1,415 | ) | 18.10 | |||||||||
Outstanding as of December 31, 2018 | 47,585 | 14.44 | 2.54 | $ | 656,238 | |||||||
Exercisable as of December 31, 2018 | 47,585 | 14.44 | 2.54 | 656,238 |
Number of Shares of RSAs | Weighted Average Grant-Date Fair Value | |||||
Unvested as of December 31, 2017 | 326,736 | $ | 27.68 | |||
Granted | 212,749 | 37.36 | ||||
Net settle for taxes | (38,700 | ) | 40.23 | |||
Vested | (113,023 | ) | 29.82 | |||
Forfeited | (12,348 | ) | 30.57 | |||
Unvested as of December 31, 2018 | 375,414 | 32.41 |
Number of Shares of PSUs | Weighted Average Grant- Date Fair Value | |||||
Unvested as of December 31, 2017 | 134,350 | $ | 24.98 | |||
Granted | 61,310 | 34.28 | ||||
Net settle for taxes | (16,342 | ) | 38.64 | |||
Vested | (26,977 | ) | 14.32 | |||
Forfeited | (2,294 | ) | 37.19 | |||
Unvested as of December 31, 2018 | 150,047 | 31.67 |
2018(5) | 2017(5) | 2016(5) | ||||
Dividend yield(1) | 2.25 | % | 2.15 | % | 3.36 | % |
Expected life in years(2) | 2.86 | 2.85 | 2.85 | |||
Expected volatility(3) | 23.47 | % | 23.35 | % | 22.16 | % |
Risk-free interest rate(4) | 2.38 | % | 1.40 | % | 0.83 | % |
Restricted Stock | Performance Stock | Total | |||||||||
2019 | $ | 4,644 | $ | 1,267 | $ | 5,911 | |||||
2020 | 3,047 | 709 | 3,756 | ||||||||
2021 | 1,291 | 80 | 1,371 | ||||||||
2022 | 227 | — | 227 | ||||||||
Total | $ | 9,209 | $ | 2,056 | $ | 11,265 |
2018 | 2017 | ||||||
Deferred tax assets: | |||||||
Allowance for loan losses | $ | 19,369 | $ | 7,963 | |||
Benefit plans | 3,925 | 2,511 | |||||
Acquisition accounting | 11,788 | 4,911 | |||||
Stock grants | 894 | 328 | |||||
OREO | 2,515 | 1,673 | |||||
Securities available for sale | 1,577 | — | |||||
Prime loan swap | 981 | 1,640 | |||||
Investments in pass through entities | 915 | 646 | |||||
Net operating losses | 66,037 | 3,624 | |||||
Nonaccrual loans | 3,990 | — | |||||
Other | 2,722 | 1,268 | |||||
Total deferred tax assets | $ | 114,713 | $ | 24,564 | |||
Deferred tax liabilities: | |||||||
Acquisition accounting | $ | 13,053 | $ | 5,923 | |||
Premises and equipment | 3,877 | 3,600 | |||||
Securities available for sale | 25 | 1,479 | |||||
Other | 583 | 529 | |||||
Total deferred tax liabilities | 17,538 | 11,531 | |||||
Net deferred tax asset | $ | 97,175 | $ | 13,033 |
2018 | 2017 | 2016 | |||||||||
Current tax expense | $ | 12,114 | $ | 27,255 | $ | 25,578 | |||||
Deferred tax expense (benefit) (1) | 17,902 | 5,535 | 366 | ||||||||
Income tax expense | $ | 30,016 | $ | 32,790 | $ | 25,944 |
2018 | 2017 | 2016 | |||||||||
Computed "expected" tax expense | $ | 37,680 | $ | 36,738 | $ | 35,645 | |||||
(Decrease) in taxes resulting from: | |||||||||||
Tax-exempt interest income, net | (5,188 | ) | (6,112 | ) | (6,087 | ) | |||||
Valuation allowance adjustment | — | (2,982 | ) | — | |||||||
Impact of the Tax Act | — | 6,105 | — | ||||||||
Other, net | (2,476 | ) | (959 | ) | (3,614 | ) | |||||
Income tax expense | $ | 30,016 | $ | 32,790 | $ | 25,944 |
2018 | 2017 | 2016 | |||||||||
Net Income: | |||||||||||
Income from continuing operations | $ | 149,413 | $ | 72,176 | $ | 75,898 | |||||
Income (loss) from discontinued operations | (3,165 | ) | 747 | 1,578 | |||||||
Net income available to common shareholders | $ | 146,248 | $ | 72,923 | $ | 77,476 | |||||
Weighted average shares outstanding, basic | 65,859 | 43,699 | 43,784 | ||||||||
Dilutive effect of stock awards and warrants | 50 | 81 | 106 | ||||||||
Weighted average shares outstanding, diluted | 65,909 | 43,780 | 43,890 | ||||||||
Basic EPS: | |||||||||||
EPS from continuing operations | $ | 2.27 | $ | 1.65 | $ | 1.73 | |||||
EPS from discontinued operations | $ | (0.05 | ) | $ | 0.02 | $ | 0.04 | ||||
EPS to common shareholders | $ | 2.22 | $ | 1.67 | $ | 1.77 | |||||
Diluted EPS: | |||||||||||
EPS from continuing operations | $ | 2.27 | $ | 1.65 | $ | 1.73 | |||||
EPS from discontinued operations | $ | (0.05 | ) | $ | 0.02 | $ | 0.04 | ||||
EPS to common shareholders | $ | 2.22 | $ | 1.67 | $ | 1.77 |
2018 | 2017 | 2016 | |||||||||
Net interest income | $ | 850 | $ | 1,150 | $ | 1,184 | |||||
Provision for credit losses | (185 | ) | (46 | ) | 217 | ||||||
Net interest income after provision for credit losses | 1,035 | 1,196 | 967 | ||||||||
Noninterest income | 3,882 | 9,245 | 11,058 | ||||||||
Noninterest expenses | 9,197 | 9,097 | 9,613 | ||||||||
Income before income taxes | (4,280 | ) | 1,344 | 2,412 | |||||||
Income tax expense (benefit) | (1,115 | ) | 597 | 834 | |||||||
Net income (loss) on discontinued operations | $ | (3,165 | ) | $ | 747 | $ | 1,578 |
2018 | 2017 | ||||||
ASSETS | |||||||
Cash | $ | 3,681 | $ | 2,611 | |||
Premises and equipment, net | 10,637 | 11,061 | |||||
Other assets | 13,386 | 15,036 | |||||
Investment in subsidiaries | 2,202,530 | 1,263,545 | |||||
Total assets | $ | 2,230,234 | $ | 1,292,253 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Short-term borrowings | 5,000 | — | |||||
Long-term borrowings | 157,057 | 148,201 | |||||
Trust preferred capital notes | 134,342 | 86,819 | |||||
Other liabilities | 9,254 | 10,904 | |||||
Total liabilities | 305,653 | 245,924 | |||||
Total stockholders' equity | 1,924,581 | 1,046,329 | |||||
Total liabilities and stockholders' equity | $ | 2,230,234 | $ | 1,292,253 |
2018 | 2017 | 2016 | |||||||||
Income: | |||||||||||
Interest and dividend income | $ | — | $ | 3 | $ | 23 | |||||
Dividends received from subsidiaries | 50,750 | 33,350 | 51,439 | ||||||||
Other operating income | 2,719 | 1,308 | 1,314 | ||||||||
Total income | 53,469 | 34,661 | 52,776 | ||||||||
Expenses: | |||||||||||
Interest expense | 15,253 | 11,423 | 5,656 | ||||||||
Other operating expenses | 13,782 | 7,130 | 5,214 | ||||||||
Total expenses | 29,035 | 18,553 | 10,870 | ||||||||
Income before income taxes and equity in undistributed net income from subsidiaries | 24,434 | 16,108 | 41,906 | ||||||||
Income tax benefit | (6,176 | ) | (9,169 | ) | (3,586 | ) | |||||
Equity in undistributed net income from subsidiaries | 115,638 | 47,646 | 31,984 | ||||||||
Net income | $ | 146,248 | $ | 72,923 | $ | 77,476 | |||||
Comprehensive income | $ | 136,905 | $ | 75,848 | $ | 67,415 |
2018 | 2017 | 2016 | |||||||||
Operating activities: | |||||||||||
Net income | $ | 146,248 | $ | 72,923 | $ | 77,476 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed net income of subsidiaries | (115,638 | ) | (47,646 | ) | (31,984 | ) | |||||
Depreciation of premises and equipment | 424 | 439 | 438 | ||||||||
Acquisition accounting amortization, net | 636 | 260 | 247 | ||||||||
Gain on sale of investment | (1,416 | ) | — | — | |||||||
Issuance of common stock grants for services | 914 | 724 | 533 | ||||||||
Net (increase) decrease in other assets | (584 | ) | (4,167 | ) | (2,402 | ) | |||||
Net increase in other liabilities | (4,159 | ) | 5,283 | 5,533 | |||||||
Net cash and cash equivalents provided by operating activities | 26,425 | 27,816 | 49,841 | ||||||||
Investing activities: | |||||||||||
Net increase in premises and equipment | — | (35 | ) | (33 | ) | ||||||
Proceeds from sale of investment | 3,761 | — | — | ||||||||
Proceeds from (payments for) equity method investment | — | 72 | — | ||||||||
Payments for investments in and advances to subsidiaries | — | — | (125,000 | ) | |||||||
Repayment of investments in and advances to subsidiaries | — | — | 540 | ||||||||
Cash received in acquisitions | 25,976 | — | — | ||||||||
Net cash and cash equivalents provided by (used in) investing activities | 29,737 | 37 | (124,493 | ) | |||||||
Financing activities: | |||||||||||
Repayments of short-term borrowings | 5,000 | — | — | ||||||||
Repayments of long-term borrowings | — | — | (7,500 | ) | |||||||
Proceeds from issuance of long-term borrowings | — | — | 148,000 | ||||||||
Cash dividends paid | (58,001 | ) | (35,393 | ) | (33,672 | ) | |||||
Cancellation of warrants | (1,530 | ) | — | — | |||||||
Issuance (repurchase) of common stock | 2,347 | 1,037 | (31,295 | ) | |||||||
Vesting of restricted stock, including tax effects | (2,908 | ) | (1,567 | ) | (586 | ) | |||||
Net cash and cash equivalents provided by (used in) financing activities | (55,092 | ) | (35,923 | ) | 74,947 | ||||||
Net increase (decrease) in cash and cash equivalents | 1,070 | (8,070 | ) | 295 | |||||||
Cash and cash equivalents at beginning of the period | 2,611 | 10,681 | 10,386 | ||||||||
Cash and cash equivalents at end of the period | $ | 3,681 | $ | 2,611 | $ | 10,681 | |||||
Supplemental schedule of noncash investing and financing activities | |||||||||||
Issuance of common stock in exchange for net assets in acquisition | $ | 794,809 | $ | — | $ | — | |||||
Transactions related to bank acquisition | |||||||||||
Assets acquired | 859,176 | — | — | ||||||||
Liabilities assumed | 64,367 | — | — |
Name (Age) | Title and Principal Occupation During at Least the Past Five Years | |
John C. Asbury (53) | Chief Executive Officer of the Company since January 2017 and President since October 2016; Chief Executive Officer of the Bank since October 2016 and President of the Bank from October 2016 until September 2017 and May to September 2018; President and Chief Executive Officer of First National Bank of Santa Fe from February 2015 until August 2016; Senior Executive Vice President and Head of the Business Services Group at Regions Bank from May 2010 until July 2014, after joining Regions Bank in March 2008 as Business Banking Division Executive; Senior Vice President at Bank of America in a variety of roles; joined the Company's Board of Directors in 2016. | |
Robert M. Gorman (60) | Executive Vice President and Chief Financial Officer of the Company since joining the Company in July 2012; Senior Vice President and Director of Corporate Support Services in 2011, and Senior Vice President and Strategic Financial Officer of SunTrust Banks, Inc., from 2002 to 2011; serves as a member of the Board of Directors of ODCM. | |
Maria P. Tedesco (58) | President of the Bank; most recently Chief Operating Officer for Retail at BMO Harris Bank based in Chicago from 2016 to 2018, where she was responsible for retail products, segments, customer experience, indirect auto, consumer lending, small business lending, business banking strategy, channels and risk; Senior Executive Vice President and Managing Director of the Retail Bank at Santander Bank, N.A., where she was responsible for leading the U.S. retail strategy and business channels, including branch network, online, mobile, investments, mortgage, call centers, ATMs, marketing, product marketing, customer experience and program management office; spent 19 years at Citizens Financial Group, Inc. ultimately becoming Group Executive Vice President and Executive Director of Retail Banking and Business Banking for the company. | |
David G. Bilko (60) | Executive Vice President and Chief Risk Officer of the Company since joining the Company in January 2014; Chief Risk Officer of StellarOne Corporation from January 2012 to January 2014; Chief Audit Officer of StellarOne Corporation from June 2011 to January 2012; Corporate Operational Risk Officer of SunTrust Banks, Inc. from May 2010 to May 2011; Chief Audit Executive of SunTrust Banks, Inc. from November 2005 to April 2010; various positions with SunTrust Banks, Inc. since 1987; serves as a member of the Board of Directors of ODCM. | |
M. Dean Brown (54) | Executive Vice President and Chief Information Officer & Head of Bank Operations since joining the Company in February 2015; Chief Information and Back Office Operations Officer of Intersections Inc. from 2012 to 2014; Chief Information Officer of Advance America from 2009 to 2012; Senior Vice President and General Manager of Revolution Money from 2007 to 2008; Executive Vice President, Chief Information Officer and Chief Operating Officer from 2006 to 2007, and Executive Vice President and Chief Information Officer from 2005 to 2007, of Upromise LLC. |
Name (Age) | Title and Principal Occupation During at Least the Past Five Years | |
Loreen A. Lagatta (50) | Executive Vice President and Chief Human Resources Officer of the Company since 2015; Senior Vice President and Director of Human Resources of the Bank from 2011 to 2015; Director of Human Resources of Capital One Financial Corporation from June 2008 to October 2011; Vice President, Compensation - Brokerage Division of Wells Fargo Securities (formerly, Wachovia Corporation) from 2006 to June 2008; Vice President, Senior HR Business Partner - Alternative Investments of Citigroup Inc. from 2000 to 2006, and various positions with Citigroup, Inc. since 1991. | |
Shawn E. O’Brien (46) | Executive Vice President and Consumer Banking Group Executive of the Bank since February 2019; Executive Vice President, Consumer Segment Group and Business Planning for BBVA Compass Bank from 2013 to 2018; various positions at BBVA Compass Bank, including Deposit and Payment Products, Strategic Planning and Corporate Planning and Analysis, from 2005 to 2013; retail brand strategy and product management at Huntington National Bank from 1998 to 2005. | |
David V. Ring (55) | Executive Vice President and Commercial Banking Group Executive since joining the Company in September 2017; Executive Vice President and Executive Managing Director at Huntington National Bank from December 2014 to May 2017; Managing Director and Head of Enterprise Banking at First Niagara Financial Group from April 2011 to December 2014; various positions at Wells Fargo and predecessor banks from January 1996 to April 2011, including Wholesale Banking Executive for Virginia to Massachusetts at Wachovia and Greater New York & Connecticut Region Manager. |
Number of securities to be issued upon exercise of outstanding warrants and rights (A) | Weighted-average exercise price of outstanding options, warrants and rights (B) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (A)) (C) | |||||||
Equity compensation plans approved by security holders | 47,585 | $ | 14.44 | 1,300,663 | |||||
Total | 47,585 | $ | 14.44 | 1,300,663 |
Exhibit No. | Description | ||
2.01 | |||
2.02 | |||
3.01 | |||
3.02 | |||
4.01 | |||
4.02 | |||
4.03 | Certain instruments relating to long-term debt not being registered have been omitted in accordance with Item 601(b)(4)(iii) of Regulation S-K. The registrant will furnish a copy of any such instrument to the Securities and Exchange Commission upon its request. | ||
10.01* | |||
10.02* | |||
10.03* | |||
10.04* | |||
10.05* | |||
10.06* | |||
10.07* | |||
10.08* | |||
10.08.1* | |||
10.09* | |||
10.10* | |||
10.11* | |||
10.12* | |||
10.13* | |||
10.14* | |||
10.15* | |||
10.16* | |||
10.17* | |||
10.18* |
10.19 | |||
10.20* | |||
10.21* | |||
10.22 | |||
10.23 | |||
10.24* | |||
10.25* | |||
10.26* | |||
10.27* | |||
21.01 | |||
23.01 | |||
31.01 | |||
31.02 | |||
32.01 | |||
101.00 | Interactive data filed pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets as of December 31, 2018 and 2017, (ii) the Consolidated Statements of Income for the years ended December 31, 2018, 2017, and 2016, (iii) the Consolidated Statements of Comprehensive Income for the years ended December 31, 2018, 2017, and 2016, (iv) the Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2018, 2017, and 2016, (v) the Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017, and 2016 and (vi) the Notes to the Consolidated Financial Statements for the years ended December 31, 2018, 2017, and 2016. |
By: | /s/ John C. Asbury | Date: February 27, 2019 | |
John C. Asbury | |||
President and Chief Executive Officer | |||
Signature | Title | |
/s/ L. Bradford Armstrong | Director | |
L. Bradford Armstrong | ||
/s/ John C. Asbury | Director, President, and Chief Executive Officer (principal executive officer) | |
John C. Asbury | ||
/s/ Michael W. Clarke | Director | |
Michael W. Clarke | ||
/s/ Glen C. Combs | Director | |
Glen C. Combs | ||
/s/ Patrick E. Corbin | Director | |
Patrick E. Corbin | ||
/s/ Beverley E. Dalton | Director | |
Beverley E. Dalton | ||
/s/ Gregory L. Fisher | Director | |
Gregory L. Fisher | ||
/s/ Robert M. Gorman | Executive Vice President and Chief Financial Officer (principal financial and accounting officer) | |
Robert M. Gorman | ||
/s/ Daniel I. Hansen | Director | |
Daniel I. Hansen | ||
/s/ Jan S. Hoover | Director | |
Jan S. Hoover | ||
/s/ Patrick J. McCann | Director | |
Patrick J. McCann | ||
/s/ W. Tayloe Murphy, Jr. | Director | |
W. Tayloe Murphy, Jr. | ||
/s/ Alan W. Myers | Director | |
Alan W. Myers | ||
/s/ Thomas P. Rohman | Director | |
Thomas P. Rohman | ||
/s/ Linda V. Schreiner | Director | |
Linda V. Schreiner | ||
/s/ Raymond D. Smoot, Jr. | Chairman of the Board of Directors | |
Raymond D. Smoot, Jr. | ||
/s/ Thomas G. Snead, Jr. | Director | |
Thomas G. Snead, Jr. | ||
/s/ Ronald L. Tillett | Vice Chairman of the Board of Directors | |
Ronald L. Tillett | ||
/s/ Keith L. Wampler | Director | |
Keith L. Wampler | ||
/s/ F. Blair Wimbush | Director | |
F. Blair Wimbush |
Adoption Agreement Contents | ||||
Page | ||||
Option 1 | Employer's Adopting Plan | |||
Option 2 | General Plan Information | |||
Option 3 | Status of Plan and Effective Date(s) | |||
Option 4 | Definitions and Other Optional Provision | |||
Option 5 | Employer Contributions | |||
Option 6 | Vesting | |||
Option 7 | Retirement Dates | |||
Option 8 | Time and Form of Payments | |||
Option 9 | Hardship Withdrawals | |||
Option 10 | Participant Deemed Investment Direction |
1. EMPLOYER(S) ADOPTING PLAN. | |
(a) Name of Plan Sponsor: | (b) Plan Sponsor’s Telephone Number: |
Union Bankshares Corporation | (804) 327-7535 |
(c) Address of Plan Sponsor: | (d) Plan Sponsor’s EIN: |
1051 E Cary Street, STE 1200 | 80-0463989 |
Richmond, VA 23219 | (e) Plan Sponsor’s Tax Year End: |
12/31 | |
(f) Other Participating Employers Adopting the Plan: [X] (1) All Affiliates are automatically participating Employers in the Plan, except for the following ______________________________________________________________________________________. [ ] (2) Each participating Employer is listed individually on the attachment captioned “List of Participating Employers,” which shall be updated as needed from time to time in compliance with ARTICLE XV of the basic plan document. |
2. GENERAL PLAN INFORMATION. | |
(a) Name of Plan: | |
Union Bankshares Corporation Executive's Deferred Compensation Plan | |
(b) Name, Address and EIN of Plan Administrator(s): [If other than Plan Sponsor, appointment must be by resolution] |
3. STATUS OF PLAN AND EFFECTIVE DATE(S). |
(a) Effective Date of Plan: The Effective Date of the Plan is January 1 , 1998 . |
(b) Plan Status. The adoption of the Plan through this Adoption Agreement is: [ ] (1) Initial Establishment. The initial adoption and establishment of the Plan. [X] (2) Restated Plan. An amendment and restatement of the Plan (a Restated Plan). (A) Effective Date of this Restatement. The Effective Date of this Restatement is January 1 , 2019 . (B) Prior Plan. The Plan was last maintained under document dated January 1 , 2018 . and was known as the Union Bankshares Corporation Executive's Deferred Compensation Plan _______________________________________________________________________________ ______________________________________________________________________________. (C) 409A Transitional Provisions (grandfathering election): [ ] Election NOT to Grandfather Pre-January 1, 2005 Vested Balances. If this Option is elected, all Deferral Accounts shall be subject to the rules set forth in the post-December 31, 2004 restatements. If the Option is not elected, the Deferral Accounts attributable to transfers from predecessor plans prior to December 31, 2004 and contributions that are vested as of December 31, 2004 shall be segregated from the Deferral Accounts attributable to contributions that are not vested as of December 31, 2004 and to contributions and transfers made on and after January 1, 2005. The terms of the Plan in effect on and after January 1, 2005 shall only apply to transfers and contributions that are not vested as of December 31, 2004 and to contributions and transfers made on and after January 1, 2005. [ ] (3) Special or Other Transitional Provisions. [Use attachment if additional space is needed] [Enter any special provisions including alternate definitions or other transitional provisions relating to any Predecessor Plan Account and the Plan as restated]_________________________________ _______________________________________________________________________________ _______________________________________________________________________________ |
[ ] (c) If elected, this Plan is intended to be paired with a qualified cash or deferred arrangement as described in subparagraph 3.1(d) of the basic plan document. If Elected – Name of the paired plan __________________________________________________ |
4. DEFINITIONS AND OTHER OPTIONAL PROVISIONS. | |||
(a) Compensation Paragraph 1.10 | |||
Compensation is used throughout the basic plan document for different purposes. The following specific rules apply. |
(1) General Definition. The Compensation definition in paragraph 1.10 of the basic plan document is modified as follows: (A) Salary. Base salary and base wages subject to the following modifications or limitations: _including any commission based wages_____________________________________ _________________________________________________________ _________________________________________________________ [Consider whether to fix the date for determining Salary. Consider whether to revise to exclude reductions for 401(k) and cafeteria plan contributions. Other revisions may be desired.] (B) Discretionary or Other Bonus. All discretionary or other Bonuses unless otherwise provided: _Only bonuses or incentive payments that are considered Performance-Based Compensation under Treasury Reg 409A-1(e), with the exception of 2% bonus in lieu or the terminated Union Pension Plan which is also included as a qualified bonus under the plan._______________________________________________ [List excluded bonus or incentive programs. The Plan Sponsor may elect a Special Deferral Election Period for Performance-Based Compensation.] (2) Specific Definitions. When used with respect to each type of contribution under the Plan, Compensation shall include: (A) Employee Deferral Contributions. [Check all that apply] [X] (a) Salary. [X] (b) Bonuses. (B) Employer Non-Elective Contributions. [Check all that apply] (a) Salary. (b) Bonuses. (C) Employer Matching Contributions. [Check all that apply] (a) Salary. (b) Bonuses. | |||
(b) Eligible Employee Paragraph 1.17 |
Eligible Employee shall mean only the following: [X] (1) Determination by Board. Any individual who is designated as an Eligible Employee by resolution of the [X] Plan Sponsor’s [ ]Employer’s Board. A copy of the resolution shall be attached to and incorporated by reference into the Plan. [ ] (2) Determination by CEO. Any individual who is designated in writing as an Eligible Employee by resolution of the [ ] Plan Sponsor’s [ ] Employer’s Chief Executive Officer. A copy of the Chief Executive Officer’s designation shall be attached to and incorporated by reference into the Plan. | |||
[ ] (3) Determined by Classification or Grade. Any individual who is classified under the Employer’s personnel practices and policies as employed in the following grades or classifications: _________________________________________________ _________________________________________________ [List executive classification to be included in plan coverage] [ ] (4) Determined by Position or Title. Any individual who is employed in the following positions with the Employer: _________________________________________________ _________________________________________________ [List the executive positions to be included in plan coverage] | |||
(c) Plan Year Paragraph 1.24 | In the case of a Restated Plan which prior to the Effective Date of this Restatement was maintained on the basis of a Plan Year beginning on a date other than January 1, the Plan Year shall begin on , ____ and end on ______, ______, with the short Plan Year beginning on , _______ and ending on December 31, ________. Thereafter, the Plan Year shall be the 12-month period beginning each January 1. | ||
(d) Effective Date of Coverage Paragraph 2.1 | |||
The effective date of coverage for an Eligible Employee shall be [Check one] | |||
[ ] (1) Immediate. The first day of the first payroll period beginning on or after the date the individual became an Eligible Employee. [ ] (2) Monthly. The first day of the first payroll period beginning on or after the first day of _________ [Complete with 1st, 2nd, or other] month next following the date the individual became an Eligible Employee. [ ] (3) Semi-Annually. The first day of the Plan Year or the first day of the seventh month of the Plan Year on or next following the date the individual became an Eligible Employee. [X] (4) Annually. The first day of the Plan Year on or next following the date the individual became an Eligible Employee. |
[X] (e) Special Election Period for Performance-Based Compensation Subparagraph 3.2(d) | If this Option is elected, the Plan Sponsor may permit Eligible Employees to make Deferred Compensation Elections with respect to Performance-Based Compensation prior to the annual filing deadline established by the Administrator which deadline shall be no later than six (6) months prior to the end of the period for which such Bonus is earned, as described in subparagraph 3.2(d) of the basic plan document. Otherwise, except for new participants, all Deferred Compensation Elections for all Bonuses must be made prior to the annual filing deadline established by the Administrator, which deadline shall be no later than the end of the calendar year or end of the Plan Sponsor’s fiscal year, immediately preceding the applicable year to which the Bonus relates. In order to be Performance-Based Compensation, (i) the Bonus must be earned over a period of at least twelve (12) months, (ii) the Bonus must be based on pre-established organizational or individual performance criteria for which the outcome is substantially uncertain at the time of establishment, (iii) such criteria are established in writing no later than ninety (90) days after the beginning of the period of service to which the Bonus and performance relate, and (iv) such criteria are not substantially certain to be met at the time established. See more specific definition in Treas. Reg. 1.409A-1(e). | ||
[X] (f) Cancellation of Deferred Compensation Election For Disability Paragraph 3.5 | |||
If this Option is elected, the Plan Sponsor: [ ] (1) Mandatory Cancellation. Will cancel the Deferred Compensation Election of an Eligible Employee who experiences a Disability as defined in subparagraph 3.5(b). | |||
[X] (2) Optional Cancellation. May permit an Eligible Employee who experiences a Disability as defined in subparagraph 3.5(b) to cancel his Deferred Compensation Election. If this Option is not selected, no cancellation will be required or permitted upon the occurrence of a Disability. |
(g) Rules Relating to “Specified Employee” Delay Subparagraph 9.1(c) | ||
For purposes of applying the 6-month delay required by Section 409A for a Participant who is a “specified employee” (i.e., a “key employee” of any publicly-traded company): |
(1) Specified Employee Identification Date. Specified employees shall be identified in the following manner: [Check one of the following and complete, if applicable] [ ] (A) Established By Board Action or Other Document of Plan Sponsor. The identification date and its effective date shall be established by the Plan Sponsor through the document set forth below, which may be an action of its Board or other written document: _________________________________ _________________________________________________ [Describe document establishing specified employee identification date] [X] (B) Default Dates in Regulations. The identification date shall be December 31 and effective for distributions to be made during the 12-month period beginning on or after the following April 1, as provided in Treas. Reg. 1.409A-1(i). [ ] (C) Alternative Identification Date. The identification date shall be ________________ (identification date) and effective for distributions to be made during the 12-month period beginning on or after the following _________ [enter date not later than the first day of the 4th month following the identification date] The Specified Employee Identification Date must be the same date for all deferred compensation plans, programs, and agreements of the Plan Sponsor and its Affiliates. (2) Compensation to be Used in Determining Specified Employees. Specified employees are (A) the 50 highest paid officers (or if less, the greater of 3 or 10% of employees) with compensation in excess of $175,000 (for 2017) (as adjusted from time to time), (B) 1% owners with compensation in excess of $150,000, or (C) 5% owners. The definition of compensation for this purpose shall be determined in the following manner: [Check one of the following and complete, if applicable] [ ] (A) Board Action or Other Document of Plan Sponsor. The compensation used to identify specified employees shall be established by the Plan Sponsor though the document set forth below which may be an action of its Board or other written document that applies to all deferred compensation plans, programs, and agreements of the Plan Sponsor and its Affiliates.________________________________________________________________________________________ [Describe document establishing compensation definition] [X] (B) VBA Plan. The compensation used to identify specified employees shall be the Total Compensation definition elected under the VBA Plan. [ ] (C) Alternative Compensation Definition. The compensation used to determine specified employees shall be determined in the following manner _________________________________________________________[Describe the document establishing compensation definition or describe compensation based on an acceptable definition under Section 415 of the Code] |
(3) Payment Rules Following Required Delay Period. Upon the expiration of the required 6-month delay: [Check one of the following] [X] (A) Catch-Up Missed Payments. Payments to which a specified employee would otherwise have been entitled during the 6-month delay will be accumulated and paid on the first day of the 7th month following the date of Separation from Service for reasons other than death. [ ] (B) Each Payment Delayed. Each payment to which a specified employee would otherwise have been entitled during the 6-month delay will be delayed for 6 months. |
[X] (h) Rules Relating to Final Check of Year | If this Option is elected, Compensation payable after the last day of the calendar year solely for services performed during the final payroll period which contains the last day of the year will be treated as Compensation for services performed in the taxable year in which the payroll period began. If this Option is not elected, Compensation payable after the last day of the calendar year solely for services performed during the final payroll period which contains the last day of the year will be treated as Compensation for services performed in the subsequent taxable year in which the payment is made. Any change in election relating to the final check of the Participant’s taxable year may not be effective for 12 months from the date the amendment is adopted and executed. |
5. EMPLOYER CONTRIBUTIONS. |
(a) Employer Contributions Paragraph 4.1 |
The following contributions by the Employer are elected: [X] (1) None. Employer contributions are not permitted. (2) Employer Non-Elective Contribution. (A) Amount. Each Employer shall make an Employer Non-Elective Contribution for each Plan Year in such amount, if any, which the Employer shall determine. (i) Flexible Formula ‑ Such amount, if any, which the Board of the Employer shall determine by resolution. (ii) Compensation Formula - _________% [Insert percentage] of the Compensation for such Plan Year, plus any additional amount that the Board of the Employer shall determine by resolution. (iii) Fixed Amount ‑ $________________________ [Insert amount], plus any additional amount that the Board of the Employer shall determine by resolution. (iv) Other - ________________________________ ___________________________________________ ___________________________________________ ___________________________________________ (B) Participants Entitled to Employer Non-Elective Contribution. The Employer Non-Elective Contribution shall be allocated to the Employer Non-Elective Deferral Account of Participants who [Select applicable provisions which shall apply conjunctively unless otherwise noted] (i) Are employed as Eligible Employees for at least ____________________ [Insert number of months] full calendar months in such Plan Year. (ii) Are Eligible Employees at any time during such Plan Year. (iii) Are Eligible Employees on the last day of such Plan Year. (iv) If they died while Eligible Employees or retired on a Disability, Early, Normal or Delayed Retirement Date while an Eligible Employee during such Plan Year [Check one] (a) But only if they are employed as an Eligible Employee for at least _________ [Insert number of months] full calendar months in such Plan Year. (b) Regardless of the number of months employed during such Plan Year. (v) Other - _____________________________________ ___________________________________________ ___________________________________________ ___________________________________________ (3) Employer Matching Contributions. (A) Amount. Each Employer shall make an Employer Matching Contribution for each Plan Year in an amount equal to the following percentage(s) of each Participant’s Deferral Contribution for such Plan Year [Check one] (i) Straight Percentage ‑ _______% [Insert percentage] of his Compensation contributed to the Plan (up to a maximum of _________% of such Compensation). (ii) Contribution Weighted Percentages ‑ _________% [Insert percentage] of the first _________% [Insert percentage] of his Compensation contributed to the Plan and ______% of his Compensation contributed to the Plan (up to a maximum of _________% of such Compensation). (iii) Other - _____________________________________ ___________________________________________ ___________________________________________ ___________________________________________ (B) Participants Entitled to Employer Matching Contribution. The Employer Matching Contribution shall be allocated to the Employer Matching Deferral Account of Participants who [Select applicable provisions which shall apply conjunctively unless otherwise noted] (i) Are employed as an Eligible Employee for at least _________ [Insert number of months] full calendar months in such Plan Year. (ii) Are Eligible Employees at any time during such Plan Year. (iii) Are Eligible Employees on the last day of such Plan Year. (iv) If they died while an Eligible Employee or retired on a Disability, Early, Normal or Delayed Retirement Date while an Eligible Employee during such Plan Year [Check one] (a) But only if they are employed as an Eligible Employee for at least _____ [Insert number of months] full calendar months in such Plan Year. (b) Regardless of the number of months employed during such Plan Year. (v) Other - _____________________________________ ___________________________________________ ___________________________________________ ___________________________________________ |
6. VESTING. | |
(a) Vesting Schedule Paragraphs 6.2 and 6.3 | |
The following vesting schedule shall apply to the Employer Deferral Account [Check one, and complete where applicable] (1) Employer Non-Elective Deferral Account. The following vesting schedule shall apply to the Employer Non-Elective Deferral Account [Check one, and complete where applicable] (A) Apply Rules Described in Qualified Plan. A Participant is vested in his Employer Non-Elective Deferral Account under the Plan in the same manner and applying the same rules applicable to employer profit sharing or other non-matching contributions under the following qualified retirement plan maintained by the Employer: ____________ ________________________________________________ (B) Always 100% Vested. A Participant shall always have a non-forfeitable right to 100% of his Employer Non-Elective Deferral Account. (C) Other Applicable Rules. A Participant shall be vested in his Employer Non-Elective Deferral Account in accordance with the following rules: __________________ ________________________________________________ [Describe vesting provisions, including automatic vesting provisions, applicable schedule and rules for counting service] (2) Employer Matching Deferral Account. The following vesting schedule shall apply to the Employer Matching Deferral Account [Check one, and complete where applicable] (A) Apply Rules Described in Qualified Plan. A Participant is vested in his Employer Matching Deferral Account under the Plan in the same manner and applying the same rules applicable to matching contributions made under the following qualified retirement plan maintained by the Employer: _______________________________________ ________________________________________________ (B) Always 100% Vested. A Participant shall always have a non-forfeitable right to 100% of his Employer Matching Deferral Account. (C) Other Applicable Rules. A Participant shall be vested in his Employer Matching Deferral Account in accordance with the following rules: _________________ ________________________________________________ ________________________________________________ [Describe vesting provisions, including automatic vesting provisions, applicable schedule and rules for counting service] | |
7. RETIREMENT DATES. |
(a) Normal Retirement Date Paragraph 8.1 |
A participant's Normal Retirement Date shall be the day the Participant reaches age_________. |
(b) Early Retirement Date Paragraph 8.3 |
[X](1) None. (2) No age requirement. (3) Age requirement of _________________________ years. (4) No service requirement. (5) Service requirement of ________________________ years of continuous full-time service with the Employer. |
(c) Disability Retirement Date Paragraph 8.4 |
[Select and complete applicable provision(s)] [X] (1) No age requirement. (2) Age requirement of ________________________ years. [X] (3) No service requirement. (4) Service requirement of ________________________ years of continuous full-time service with the Employer. |
8. TIME AND FORM OF PAYMENTS. | ||
(a) Time of Payment Paragraph 9.1 | The Employer Non-Elective Deferral Account shall be paid on the Participant’s Separation from Service. The Benefit Commencement Date for all other benefits will be determined as follows: [Check one, and complete where applicable] |
(1) Selected By Plan Sponsor. The Plan Sponsor selects the following time of payment: (A) Normal Retirement Date. The later of the Participant’s Normal Retirement Date under the Plan or his Separation from Service (for reasons other than death). (B) Separation from Service. The Participant’s Separation from Service for whatever reason. (C) Six Months Following Separation from Service. Six months following the Participant’s Separation from Service (for reasons other than death). If elected here , the Plan Sponsor elects for payment to be accelerated upon a Change in Control, but only with respect to contributions made after this Adoption Agreement is executed, unless the Plan Sponsor previously made such an election under Option 3(b)(3). |
[X] (2) Selected By Participant. The date selected by the Participant in accordance with the following: (A) Participant’s Options. The Participant may elect that his Benefit Commencement Date be based on | ||
(i) The later of his Normal Retirement Date or his [X] Separation from Service (for reasons other than death) or [ ] six months following his Separation from Service (for reasons other than death). [Select one] (ii) [X] His Separation from Service (for reasons other than death), or [ ] six months following his Separation from Service (for reasons other than death). [Select one] (iii) A date certain stated clearly in his Deferred Compensation Election form which shall be without regard to when his employment with the Employer ends. (iv) The later of a date certain or [X] his Separation from Service (for reasons other than death), or [ ] six months following his Separation from Service (for reasons other than death). [Select one] (v) The earlier of a date certain or [X] his Separation from Service (for reasons other than death) or [ ] six months following his Separation from Service (for reasons other than death). [Select one] | ||
[X] (vi) Change in Control. The Participant may elect to have payment accelerated upon a Change in Control. |
(b) Form of Payment to Participant Paragraph 9.2 | The Employer Non-Elective Deferral Account shall be paid in a single lump sum. The form of payment to the Participant for all other benefits will be determined as follows: [Check one, and complete where applicable] |
(1) Selected By Plan Sponsor. The Plan Sponsor selects the following form of payment: (A) Lump Sum. Deferral Benefits will be paid to the Participant in a single, lump-sum payment. (B) Periodic Installments. Deferral Benefits will be paid to the Participant in periodic installment payments made: (i) Frequency: (a) Monthly. (b) Annually. (ii) Duration. Over the following period: (a) Five (5) years. |
(b) Ten (10) years. (c) Fifteen (15) years. (d) Twenty (20) years. [X] (2) Selected By Participant. The Participant may elect from among the following forms of payment [Select options to be available to Participants] [X] (A) Lump Sum. Deferral Benefits may be paid to the Participant in a single, lump-sum payment. | ||
[X] (B) Periodic Installments. Deferral Benefits may be paid to the Participant in periodic installment payments made: (i) Frequency: [X] (a) Monthly. [X] (b) Annually. (ii) Duration. Over the following period: [X] (a) Five (5) years. [X] (b) Ten (10) years. [X] (c) Fifteen (15) years. [X] (d) Twenty (20) years. |
(c) Form of Payment to Beneficiary Paragraph 9.2 | Any unpaid portion of the Employer Non-Elective Deferral Account shall be paid in a single lump sum to the Beneficiary. The form of payment to the Beneficiary for all other unpaid benefits will be determined as follows: [Check one, and complete where applicable] |
(1) Selected By Plan Sponsor. The Plan Sponsor selects the following form of payment to the Beneficiary: (A) Lump Sum. Deferral Benefits will be paid to the Beneficiary in a single, lump-sum payment. (B) Periodic Installments. Deferral Benefits will be paid to the Beneficiary in periodic installment payments made: (i) Frequency: (a) Monthly. (b) Annually. (ii) Duration. Over the following period: (a) Five (5) years. (b) Ten (10) years. (c) Fifteen (15) years. (d) Twenty (20) years. |
(2) Selected By Participant. The Participant may elect the form of payment to the Beneficiary from among the following forms of payment [Select options to be available to Participants] |
[X] (A) Lump Sum. Deferral Benefits will be paid to the Beneficiary in a single, lump-sum payment. [X] (B) Periodic Installments. Deferral Benefits will be paid to the Beneficiary in periodic installment payments made: (i) Frequency: [X] (a) Monthly. [X] (b) Annually. (ii) Duration. Over the following period: [X] (a) Five (5) years. [X] (b) Ten (10) years. [X] (c) Fifteen (15) years. [X] (d) Twenty (20) years. |
9. HARDSHIP WITHDRAWALS. |
(a) Availability Generally Paragraph 10.1 |
A Participant [Check one] (1) Not Permitted. May not make Hardship Withdrawals. [X] (2) Permitted. May make a Hardship Withdrawal for an Unforeseeable Emergency from the following accounts [Check one or more] [X] (A) Employee Deferral Account. (B) Employer Matching Deferral Account. |
(C) Employer Non-Elective Deferral Account. (D) Predecessor Plan Account. |
10. PARTICIPANT DEEMED INVESTMENT DIRECTION. | |
(a) Availability Generally Paragraph 5.2 | A Participant [Check one] |
(1) Not Permitted. May not make deemed investment directions. [X] (2) Permitted. May make deemed investment directions for the following accounts (“directable accounts”) [Check one or more] [X] (A) Employee Deferral Account. (B) Employer Matching Deferral Account. (C) Employer Non-Elective Deferral Account. (D) Predecessor Plan Account. | |
(b) Permissible Investments | |
Unless the Plan Sponsor elects a different option below, a Participant’s directable accounts may be invested in the investment funds which are designed to mirror the investment options available under the VBA Plan as adopted by the Plan Sponsor, to the extent legally practical, with alternate funds designated where collective investment funds may not be offered under a nonqualified plan. [X] (1) VBA Plan Plus Company Stock. In addition to the funds available under the VBA Plan, a Company Stock Fund will also be available for directed investment. (2) VBA Plan Without Company Stock. Regardless of whether a Company Stock Fund is available under the VBA Plan, no Company Stock Fund will be available for directed investment. | |
(3) Company Stock Only. In lieu of the funds available under the VBA Plan, a Company Stock Fund will be the only fund available for directed investment. |
Union Bankshares Corporation | |
[Enter Name of Plan Sponsor] | |
By /s/ Loreen Lagatta | |
Its EVP, Chief Human Resource Officer | |
[SEAL] | |
ATTEST: | |
/s/ Rachael R. Lape | |
Its General Counsel and SVP | |
[Enter Name of Employer] | |
By | |
Its | |
[SEAL] | |
ATTEST: | |
Its | |
[Enter Name of Employer] | |
By | |
Its | |
[SEAL] | |
ATTEST: | |
Its |
UNION BANKSHARES CORPORATION |
RESOLUTIONS OF THE BOARD OF DIRECTORS |
December 6, 2018 |
Amount | |
Annual Retainer Cash Fees (1) | |
Service as a Director | $35,000 |
Service as Chairman of the Board of Directors | $80,000 (additional) |
Service as Vice Chairman of the Board of Directors | $20,000 (additional) |
Service as Chairman of Audit Committee | $20,000 (additional) |
Service as Chairman of Compensation Committee | $13,500 (additional) |
Service as Chairman of Risk Committee | $15,000 (additional) |
Service as Chairman of Nominating and Corporate Governance Committee | $10,000 (additional) |
Members of Audit, Risk, Compensation and Nominating and Corporate Governance Committees | $8,000 (additional) |
Meeting Fees | |
Executive Committee per meeting (in person) | $1,000 |
Executive Committee per meeting (telephonic lasting under an hour) | $500 |
Meetings above maximum per year number per Meeting | $1,000 |
Equity Compensation | |
In addition to cash compensation, non-employee directors receive an annual stock retainer of $50,000 paid quarterly in advance in unrestricted shares of the Company’s stock. | |
(1) The retainer fees are payable in advance in quarterly installments |
ACCESS NATIONAL CORPORATION | |
Date: January 31, 2019 | By: /s/ Robert C. Shoemaker |
Its: EVP |
ACCESS NATIONAL BANK | |
Date: January 31, 2019 | By: /s/ Robert C. Shoemaker |
Its: EVP |
EXECUTIVE | |
Date: January 31, 2019 | /s/ Michael W. Clarke |
Agreed and Accepted: | |
UNION BANKSHARES CORPORATION | |
By: /s/ Loreen A. Lagatta | |
Name: Loreen A. Lagatta | |
Title: EVP & Chief Human Resource Officer | |
Date: January 31, 2019 | |
February 1, 2019 | /s/ Michael W. Clarke |
Date | Michael W. Clarke |
Subsidiary | State of Incorporation or Organization | |
Union Bank & Trust | Virginia | |
Access Insurance Group, L.L.C. | Virginia | |
Capital Fiduciary Advisors, L.L.C. | Virginia | |
Dixon, Hubard, Feinour, & Brown, Inc. | Virginia | |
Middleburg Investment Services, LLC (formerly, Access Investment Services, L.L.C.) | Virginia | |
Middleburg Trust Company | Virginia | |
Old Dominion Capital Management, Inc. | Virginia | |
Outfitter Advisors. Ltd. | Delaware | |
Union Insurance Group, LLC | Virginia |
Registration Statement Number | Form | Description | ||
333-220398 | Form S-3 | Common Stock, Preferred Stock, Debt Securities, Warrants, Purchase Contracts, Units | ||
333-156946 | Form S-3 | Fixed Rate Cumulative Perpetual Preferred Stock, Series A; Warrant to Purchase 422,636 Shares of Common Stock; 422,636 Shares of Common Stock | ||
333-102012 | Form S-3 | Common stock | ||
333-81199 | Form S-3 | Common stock | ||
333-203580 | Form S-8 | Union Bankshares Corporation Stock and Incentive Plan | ||
333-193364 | Form S-8 | FNB Corporation 2000 Incentive Stock Plan, FNB Corporation 2006 Incentive Stock Plan, StellarOne Corporation Stock Incentive Plan and StellarOne Corporation Stock and Incentive Compensation Plan | ||
333-175808 | Form S-8 | Union First Market Bankshares Corporation 2011 Stock Incentive Plan | ||
333-113842 | Form S-8 | Union Bankshares Corporation Non-Employee Directors’ Stock Plan | ||
333-113839 | Form S-8 | Union Bankshares Corporation 2003 Stock Incentive Plan | ||
333-228455 | Form S-8 via post-effective amendment to Form S-4 | Access National Corporation 2017 Equity Compensation Plan and Access National Corporation 2009 Stock Option Plan |
/s/ John C. Asbury | |
John C. Asbury, | |
President and Chief Executive Officer |
/s/ Robert M. Gorman | |
Robert M. Gorman, | |
Executive Vice President and Chief Financial Officer |
/s/ John C. Asbury | |
John C. Asbury, | |
President and Chief Executive Officer | |
February 27, 2019 | |
/s/ Robert M. Gorman | |
Robert M. Gorman, | |
Executive Vice President and Chief Financial Officer |
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Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Feb. 20, 2019 |
Jun. 30, 2018 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Union Bankshares Corp | ||
Entity Central Index Key | 0000883948 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 2,526,442,423 | ||
Entity Common Stock, Shares Outstanding | 81,902,311 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1.33 | $ 1.33 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 65,977,149 | 43,743,318 |
Common stock, shares outstanding (in shares) | 65,977,149 | 43,743,318 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||||||||
Statement of Comprehensive Income [Abstract] | ||||||||||||||
Net income | [1] | $ 146,248 | $ 72,923 | $ 77,476 | ||||||||||
Cash flow hedges: | ||||||||||||||
Change in fair value of cash flow hedges | 1,087 | (44) | 270 | |||||||||||
Reclassification adjustment for losses included in net income (net of tax, $259, $464, and $274 for the years ended December 31, 2018, 2017, and 2016, respectively) (1) | [2] | 975 | 862 | 508 | ||||||||||
AFS securities: | ||||||||||||||
Unrealized holding gains (losses) arising during period (net of tax, $2,847, $1,580, and $4,408 for the years ended December 31, 2018, 2017, and 2016, respectively) | (10,711) | 2,936 | (8,186) | |||||||||||
Reclassification adjustment for gains included in net income (net of tax, $95, $280, and $72 for the years ended December 31, 2018, 2017, and 2016, respectively) (2) | [3] | (362) | (520) | (133) | ||||||||||
HTM securities: | ||||||||||||||
Reclassification adjustment for accretion of unrealized gain on AFS securities transferred to HTM (net of tax, $109, $362, and $568 for the years ended December 31, 2018, 2017 and 2016, respectively) (3) | [4] | (408) | (672) | (1,055) | ||||||||||
Bank owned life insurance: | ||||||||||||||
Unrealized holding gains (losses) arising during period | 0 | 0 | (1,728) | |||||||||||
Reclassification adjustment for losses included in net income (4) | [5] | 76 | 363 | 263 | ||||||||||
Other comprehensive income (loss) | (9,343) | 2,925 | (10,061) | |||||||||||
Comprehensive income | $ 136,905 | $ 75,848 | $ 67,415 | |||||||||||
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | |||
Tax expense (benefit) related to reclassification adjustment for losses included in net income | $ (259) | $ (464) | $ (274) |
Tax expense (benefit) related to unrealized holding (losses) gains arising during period | (2,847) | 1,580 | (4,408) |
Tax expense (benefit) related to (gains) losses on the sale of securities | 95 | 280 | 72 |
Tax expense (benefit) related to (gains) losses for AFS securities transferred to HTM | $ 109 | $ 362 | $ 568 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands |
Total |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
|||||
---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2015 | $ 995,367 | $ 59,159 | $ 631,822 | $ 298,134 | $ 6,252 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 77,476 | [1] | 77,476 | |||||||
Other comprehensive income (loss), (net of taxes) | (10,061) | (10,061) | ||||||||
Issuance of common stock in regard to acquisition | 453 | 23 | 430 | |||||||
Dividends on common stock | (33,672) | (33,672) | ||||||||
Stock purchased under stock repurchase plan | (33,177) | (1,877) | (31,300) | |||||||
Issuance of common stock under Equity Compensation Plans | 1,429 | 118 | 1,311 | |||||||
Issuance of common stock for services rendered | 533 | 25 | 508 | |||||||
Vesting of restricted stock, including tax effects, under Equity Compensation Plan | (586) | 58 | (644) | |||||||
Stock-based compensation expense | 3,270 | 3,270 | ||||||||
Ending balance at Dec. 31, 2016 | 1,001,032 | 57,506 | 605,397 | 341,938 | (3,809) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 72,923 | [1] | 72,923 | |||||||
Other comprehensive income (loss), (net of taxes) | 2,925 | 2,925 | ||||||||
Issuance of common stock in regard to acquisition | 0 | |||||||||
Dividends on common stock | (35,393) | (35,393) | ||||||||
Issuance of common stock under Equity Compensation Plans | 1,037 | 84 | 953 | |||||||
Issuance of common stock for services rendered | 724 | 28 | 696 | |||||||
Vesting of restricted stock, including tax effects, under Equity Compensation Plan | (1,567) | 126 | (1,693) | |||||||
Stock-based compensation expense | 4,648 | 4,648 | ||||||||
Ending balance at Dec. 31, 2017 | 1,046,329 | 57,744 | 610,001 | 379,468 | (884) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 146,248 | [1] | 146,248 | |||||||
Other comprehensive income (loss), (net of taxes) | (9,343) | (9,343) | ||||||||
Issuance of common stock in regard to acquisition | [2] | 794,809 | 29,156 | 765,653 | ||||||
Dividends on common stock | (58,001) | (58,001) | ||||||||
Issuance of common stock under Equity Compensation Plans | 2,347 | 162 | 2,185 | |||||||
Issuance of common stock for services rendered | 914 | 31 | 883 | |||||||
Vesting of restricted stock, including tax effects, under Equity Compensation Plan | (2,908) | 157 | (3,065) | |||||||
Cancellation of Warrants | (1,530) | (1,530) | ||||||||
Impact of adoption of new guidance | (416) | (370) | (46) | |||||||
Stock-based compensation expense | 6,132 | 6,132 | ||||||||
Ending balance at Dec. 31, 2018 | $ 1,924,581 | $ 87,250 | $ 1,380,259 | $ 467,345 | $ (10,273) | |||||
|
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Statement of Stockholders' Equity [Abstract] | |||
Dividends on common stock (in dollars per share) | $ 0.88 | $ 0.81 | $ 0.77 |
Issuance of Common Stock in regard to acquisition, shares | 21,922,077 | 17,232 | |
Stock purchased under stock repurchase plan, shares | 0 | 0 | 1,411,131 |
Issuance of common stock under Dividend Reinvestment Plan, shares | 0 | 0 | 0 |
Vesting of restricted stock under Equity Compensation Plan, shares | 118,058 | 94,370 | 43,620 |
Issuance of common stock under Equity Compensation Plan, shares | 121,438 | 63,476 | 88,409 |
Issuance of common stock for services rendered, shares | 23,581 | 20,857 | 19,132 |
Other comprehensive income (loss), tax | $ 2,792 | $ 1,402 | $ 4,774 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||||||
Operating activities (1): | |||||||||||
Net income | [1] | $ 146,248 | $ 72,923 | $ 77,476 | |||||||
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities: | |||||||||||
Depreciation of premises and equipment | [1] | 13,725 | 11,183 | 10,215 | |||||||
Writedown of foreclosed properties and former bank premises | [1] | 1,324 | 1,891 | 1,017 | |||||||
Amortization, net | [1] | 12,603 | 14,021 | 13,555 | |||||||
Amortization (accretion) related to acquisition, net | [1] | (6,711) | (866) | 1,534 | |||||||
Provision for credit losses | [1] | 13,551 | 10,756 | 9,100 | |||||||
Gains on securities transactions, net | [1] | (383) | (800) | (205) | |||||||
BOLI income | [1] | (7,198) | (5,306) | (5,513) | |||||||
Deferred tax expense (benefit) | [1] | 17,821 | 5,624 | 243 | |||||||
Decrease (increase) in loans held for sale, net | [1] | 40,662 | (4,175) | (457) | |||||||
Losses (gains) on sales of foreclosed properties and former bank premises, net | [1] | (220) | 143 | (217) | |||||||
Gain on Shore Premier sale | [1] | (19,966) | 0 | 0 | |||||||
Goodwill impairment losses | [1] | 864 | 0 | 0 | |||||||
Stock-based compensation expenses | [1] | 6,132 | 4,648 | 3,270 | |||||||
Issuance of common stock for services | [1] | 914 | 724 | 533 | |||||||
Net decrease (increase) in other assets | [1] | (26,606) | (5,785) | (14,810) | |||||||
Net increase (decrease) in other liabilities | [1] | 24,005 | 5,352 | (1,898) | |||||||
Net cash and cash equivalents provided by (used in) operating activities | [1] | 216,765 | 110,333 | 93,843 | |||||||
Investing activities: | |||||||||||
Purchases of AFS securities and restricted stock | (1,047,611) | (298,958) | (259,020) | ||||||||
Purchases of HTM securities | (485,629) | (7,836) | (2,390) | ||||||||
Proceeds from sales of AFS securities and restricted stock | 515,764 | 139,046 | 69,516 | ||||||||
Proceeds from maturities, calls and paydowns of AFS securities | 173,597 | 115,124 | 115,670 | ||||||||
Proceeds from maturities, calls and paydowns of HTM securities | 0 | 5,048 | 2,686 | ||||||||
Proceeds from sale of marketable equity securities | 28,913 | 0 | 0 | ||||||||
Proceeds from sale of loans held for investment | 581,324 | 0 | 0 | ||||||||
Net increase in loans held for investment | (704,582) | (838,668) | (637,207) | ||||||||
Net increase in premises and equipment | 1,698 | (9,261) | (6,339) | ||||||||
Proceeds from BOLI settlements | 0 | 2,497 | 0 | ||||||||
Proceeds from sales of foreclosed properties and former bank premises | 6,295 | 2,448 | 5,837 | ||||||||
Cash paid in acquisitions | (14,304) | (231) | (4,077) | ||||||||
Cash acquired in acquisitions | 174,496 | 5,038 | 207 | ||||||||
Net cash and cash equivalents provided by (used in) investing activities | (770,039) | (885,753) | (715,117) | ||||||||
Financing activities: | |||||||||||
Net increase in noninterest-bearing deposits | 81,028 | 105,093 | 20,688 | ||||||||
Net increase in interest-bearing deposits | 351,084 | 502,018 | 394,865 | ||||||||
Net increase in short-term borrowings | 58,645 | 217,371 | 187,804 | ||||||||
Cash paid for contingent consideration | (565) | (3,003) | 0 | ||||||||
Proceeds from issuance of long-term debt | 225,000 | 20,000 | 178,000 | ||||||||
Repayments of long-term debt | (40,000) | (10,000) | (57,500) | ||||||||
Cash dividends paid - common stock | (58,001) | (35,393) | (33,672) | ||||||||
Cancellation of warrants | (1,530) | 0 | 0 | ||||||||
Repurchase of common stock | 0 | 0 | (33,177) | ||||||||
Issuance of common stock | 2,347 | 1,037 | 1,429 | ||||||||
Vesting of restricted stock, net of shares held for taxes | (2,908) | (1,567) | (586) | ||||||||
Net cash and cash equivalents provided by financing activities | 615,100 | 795,556 | 657,851 | ||||||||
Increase (decrease) in cash and cash equivalents | 61,826 | 20,136 | 36,577 | ||||||||
Cash and cash equivalents at beginning of the period | 199,373 | 179,237 | 142,660 | ||||||||
Cash and cash equivalents at end of the period | 261,199 | 199,373 | 179,237 | ||||||||
Cash payments for: | |||||||||||
Interest | 99,227 | 47,775 | 29,576 | ||||||||
Income taxes | 10,830 | 24,000 | 27,900 | ||||||||
Supplemental schedule of noncash investing and financing activities | |||||||||||
Transfers from loans (foreclosed properties) to foreclosed properties (loans) | 493 | 910 | 1,297 | ||||||||
Stock received as consideration for sale of loans held for investment | 28,913 | 0 | 0 | ||||||||
Securities transferred from HTM to AFS | 187,425 | 0 | 0 | ||||||||
Issuance of common stock in exchange for net assets in acquisition | 794,809 | [2] | 0 | 453 | |||||||
Transactions related to acquisitions | |||||||||||
Assets acquired | 3,253,328 | 293 | 4,668 | ||||||||
Liabilities assumed | [3] | $ 2,873,718 | $ 5,437 | $ 4,807 | |||||||
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company - Headquartered in Richmond, Virginia, the Company is the largest community banking organization headquartered in Virginia and, as of December 31, 2018, operated in all major banking markets throughout the Commonwealth. The Company is the holding company for Union Bank & Trust, which provides banking, trust, and wealth management services and, as of December 31, 2018, had a statewide presence of 140 bank branches, seven of which were operated as Xenith Bank, a division of Union Bank & Trust of Richmond, Virginia, and approximately 188 ATMs. As of December 31, 2018, non-bank affiliates of the Company included: Union Insurance Group, LLC, which provides various lines of insurance products; Old Dominion Capital Management, Inc., Outfitter Advisors, Ltd., and Dixon, Hubard, Feinour & Brown, Inc., which provide investment advisory services. Principles of Consolidation - The accounting policies and practices of Union Bankshares Corporation and subsidiaries conform to GAAP and follow general practices within the banking industry. The consolidated financial statements include the accounts of the Company, which is a financial holding company and a bank holding company that owns all of the outstanding common stock of its banking subsidiary, Union Bank & Trust, which owns Union Insurance Group, LLC, Old Dominion Capital Management, Inc., and Dixon, Hubard, Feinour & Brown, Inc. The Company’s Statutory Trusts, wholly owned subsidiaries of the Company, were formed for the purpose of issuing redeemable trust preferred capital notes in connection with two of the Company’s acquisitions prior to 2006. ASC 860, Transfers and Servicing, precludes the Company from consolidating Statutory Trusts I and II. The subordinated debts payable to the trusts are reported as liabilities of the Company. All significant inter-company balances and transactions have been eliminated. Use of Estimates - The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. 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 ALL, the valuation of goodwill and intangible assets, OREO, deferred tax assets and liabilities, other-than-temporary impairment of securities, and the fair value of financial instruments. Variable Interest Entities - Current accounting guidance states that if a business enterprise is the primary beneficiary of a variable interest entity, the assets, liabilities, and results of the activities of the variable interest entity should be included in the consolidated financial statements of the business enterprise. An entity is deemed to be the primary beneficiary of a variable interest entity if that entity has both the power to direct the activities that most significantly impact its economic performance; and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the variable interest entity. Management has evaluated the Company’s investment in variable interest entities. The Company’s primary exposure to variable interest entities are the trust preferred securities structures. This accounting guidance has not had a material impact on the financial condition or operating results of the Company. Business Combinations and Divestitures - Business combinations are accounted for under ASC 805, Business Combinations, using the acquisition method of accounting. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. To determine the fair values, the Company utilizes third party valuations, appraisals, and internal valuations based on discounted cash flow analysis or other valuation techniques. Under the acquisition method of accounting, the Company will identify the acquiree and the closing date and apply applicable recognition principles and conditions. If they are necessary to implement its plan to exit an activity of an acquiree, costs that the Company expects, but is not obligated, to incur in the future are not liabilities at the acquisition date, nor are costs to terminate the employment or relocate an acquiree’s employees. The Company does not recognize these costs as part of applying the acquisition method. Instead, the Company recognizes these costs as expenses in its post-combination financial statements in accordance with other applicable GAAP. Merger-related costs are costs the Company incurs to effect a business combination. Those costs include advisory, legal, accounting, valuation, and other professional or consulting fees. Some other examples of costs to the Company include systems conversions, integration planning consultants, contract terminations, and advertising costs. The Company will account for merger-related costs as expenses in the periods in which the costs are incurred and the services are received, with one exception. The costs to issue debt or equity securities will be recognized in accordance with other applicable accounting guidance. These merger-related costs are included on the Company’s Consolidated Statements of Income classified within the noninterest expense caption. Cash and Cash Equivalents - For purposes of reporting cash flows, the Company defines cash and cash equivalents as cash, cash due from banks, interest-bearing deposits in other banks, money market investments, other interest-bearing deposits, and federal funds sold. Investment Securities - Investment securities held by the Company are classified as either available for sale or held to maturity at the time of purchase and reassessed periodically, based on management’s intent. Additionally, the Company also holds equity securities and restricted stock with the Federal Reserve Bank and FHLB, which are not subject to the investment security classifications. Available for Sale - securities classified as available for sale are those debt securities that management intends to hold for an indefinite period of time, including securities used as part of the Company’s asset/liability strategy, and that may be sold in response to changes in interest rates, liquidity needs, or other factors. Securities available for sale are reported at fair value, with unrealized gains or losses, net of deferred taxes, included in accumulated other comprehensive income in stockholders’ equity. Held to Maturity - debt securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity and reported at amortized cost. Transfers of debt securities into the held to maturity category from the available for sale category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in other comprehensive income and in the carrying value of the held to maturity securities. Such amounts are amortized over the remaining life of the security. Equity Investments - Equity investments are accounted for using the equity method of accounting if the investment gives the Company the ability to exercise significant influence, but not control, over an investee. The Company’s share of the earnings or losses is reported by equity method investees and is classified as income from equity investees on our consolidated statements of earnings. Equity investments for which the Company does not have the ability to exercise significant influence are accounted for using the cost method of accounting. Under the cost method, investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions, and additional investments. Equity investments in unconsolidated entities with a readily determinable fair value that are not accounted for under the equity method will be measured at fair value through net income. Restricted Stock, at cost - due to restrictions placed upon the Company’s common stock investments in the Federal Reserve Bank and FHLB, these securities have been classified as restricted equity securities and carried at cost. The FHLB required the Bank to maintain stock in an amount equal to 4.25% of outstanding borrowings and a specific percentage of the member’s total assets at December 31, 2018 and 2017. The Federal Reserve Bank requires the Company to maintain stock with a par value equal to 6% of its outstanding capital. The Company regularly evaluates all securities whose values have declined below amortized cost to assess whether the decline in fair value represents an OTTI. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating OTTI losses, an impairment is other-than-temporary if any of the following conditions exist: the entity intends to sell the security; it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis; or, the entity does not expect to recover the security’s entire amortized cost basis (even if the entity does not intend to sell). If a credit loss exists, but an entity does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, the impairment is other-than-temporary and should be separated into a credit portion to be recognized in earnings and the remaining amount relating to all other factors recognized as other comprehensive loss. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Purchased premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Loans Held for Sale - The Company records loans held for sale via the fair value option. For further information regarding the fair value method and assumptions, refer to Note 13 “Fair Value Measurements.” In addition, the Company requires a firm purchase commitment from a permanent investor before a loan can be closed, thus limiting interest rate risk. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The change in fair value of loans held for sale is recorded as a component of Discontinued Operations within the Company’s Consolidated Statements of Income. At December 31, 2018, the Company did not have loans held for sale, due to the wind down of UMG; refer to Note 18 "Segment Reporting & Discontinued Operations." Loans - The Company originates commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by commercial and residential real estate loans (including acquisition and development loans and residential construction loans) throughout its market area. The ability of the Company’s debtors to honor their contracts on such loans is dependent upon the real estate and general economic conditions in those markets, as well as other factors. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for any charge-offs, the ALL, and any deferred fees and costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Below is a summary of the current loan segments: Construction and Land Development - construction loans generally made to commercial and residential builders for specific construction projects. The successful repayment of these types of loans is generally dependent upon (a) a commitment for permanent financing from the Company or other lender, or (b) from the sale of the constructed property. These loans carry more risk than both types of commercial real estate term loans due to the dynamics of construction projects, changes in interest rates, the long-term financing market, and state and local government regulations. As in commercial real estate term lending, the Company manages risk by using specific underwriting policies and procedures for these types of loans and by avoiding excessive concentrations to any one business or industry. Also, included in this category are loans generally made to residential home builders to support their lot and home construction inventory needs. Repayment relies upon the sale of the underlying residential real estate project. This type of lending carries a higher level of risk as compared to other commercial lending. This class of lending manages risks related to residential real estate market conditions, a functioning primary and secondary market in which to finance the sale of residential properties, and the borrower’s ability to manage inventory and run projects. The Company manages this risk by lending to experienced builders and developers by using specific underwriting policies and procedures for these types of loans and by avoiding excessive concentrations with any particular customer or geographic region. Commercial Real Estate – Owner Occupied - term loans made to support owner occupied real estate properties that rely upon the successful operation of the business occupying the property for repayment. General market conditions and economic activity may affect these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by avoiding concentrations to any one business or industry. Commercial Real Estate – Non-Owner Occupied - term loans typically made to borrowers to support income producing properties that rely upon the successful operation of the property for repayment. General market conditions and economic activity may impact the performance of these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by diversifying the lending to various property types, such as retail, office, office warehouse, and hotel as well as avoiding concentrations to any one business or industry. Residential 1-4 Family - Mortgage - loans generally made to residential borrowers. The Residential 1-4 Family - Mortgage loan portfolio carries risks associated with the creditworthiness of the borrower and changes in loan-to-value ratios. The Company manages these risks through policies and procedures such as limiting loan-to-value ratios at origination, experienced underwriting, requiring standards for appraisers, and not making subprime loans. Residential 1-4 Family - Commercial - loans made to commercial borrowers where the loan is secured by residential property. The Residential 1-4 Family - Commercial loan portfolio carries risks associated with the creditworthiness of the tenant, the ability to re-lease the property when vacancies occur, and changes in loan-to-value ratios. The Company manages these risks through policies and procedures, such as limiting loan-to-value ratios at origination, requiring guarantees, experienced underwriting, and requiring standards for appraisers. Multifamily Real Estate - loans made to real estate investors to support permanent financing for multifamily residential income producing properties that rely on the successful operation of the property for repayment. This management mainly involves property maintenance, re-leasing upon tenant turnover and collection of rents due from tenants. This type of lending carries a lower level of risk, as compared to other commercial lending. In addition, underwriting requirements for multifamily properties are stricter than for other non-owner-occupied property types. The Company manages this risk by avoiding concentrations with any particular customer. Commercial & Industrial - loans generally made to support the Company’s borrowers’ need for short-term or seasonal cash flow and equipment/vehicle purchases. Repayment relies upon the successful operation of the business. This type of lending typically carries a lower level of commercial credit risk, as compared to other commercial lending. The Company manages this risk by using general underwriting policies and procedures for these types of loans and by avoiding concentrations to any one business or industry. HELOC - the consumer HELOC portfolio carries risks associated with the creditworthiness of the borrower and changes in loan-to-value ratios. The Company manages these risks through policies and procedures, such as limiting loan-to-value ratios at origination, using experienced underwriting, requiring standards for appraisers, and not making subprime loans. Auto - the consumer indirect auto lending portfolio generally carries certain risks associated with the values of the collateral that management must mitigate. The Company focuses its indirect auto lending on one to two-year-old used vehicles where substantial depreciation has already occurred thereby minimizing the risk of significant loss of collateral values in the future. This type of lending places reliance on computer-based loan approval systems to supplement other underwriting standards. Consumer and all other - portfolios carry risks associated with the creditworthiness of the borrower and changes in the economic environment. The Company manages these risks through policies and procedures such as experienced underwriting, maximum debt to income ratios, and minimum borrower credit scores. Loans that support small business lines of credit and agricultural lending are included in this category; however, neither are a material source of business for the Company. Also included in this category are loans purchased through various third-party lending programs. These portfolios include consumer loans and carry risks associated with the borrower, changes in the economic environment, and the vendors themselves. The Company manages these risks through policies that require minimum credit scores and other underwriting requirements, robust analysis of actual performance versus expected performance, as well as ensuring compliance with the Company's vendor management program. Nonaccruals, Past Dues, and Charge-offs The policy for placing commercial loans on nonaccrual status is generally when the loan is 90 days delinquent unless the credit is well secured and in process of collection. Consumer loans are typically charged-off when management judges the loan to be uncollectible but generally no later than 120 days past due for non-real estate secured loans and 180 days for real estate secured loans. Consumer loans are generally not placed on nonaccrual status prior to charge off. Commercial loans are typically written down to net realizable value when it is determined that the Company will be unable to collect the principal amount in full and the amount is a confirmed loss. Loans in all classes of portfolios are considered past due or delinquent when a contractual payment has not been satisfied. Loans are placed on nonaccrual status or charged off at an earlier date if collection of principal and interest is considered doubtful and in accordance with regulatory requirements. The process for charge-offs of impaired collateral dependent loans is discussed in detail within the “Allowance for Loan Losses” section of this Note. For both the commercial and consumer loan segments, all interest accrued but not collected for loans placed on nonaccrual status or charged-off is reversed against interest income and accrual of interest income is terminated. Payments and interest on these loans are accounted for using the cost-recovery method by applying all payments received as a reduction to the outstanding principal balance until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The determination of future payments being reasonably assured varies depending on the circumstances present with the loan; however, the timely payment of contractual amounts owed for six consecutive months is a primary indicator. The authority to move loans into or out of accrual status is limited to senior Special Assets Officers. Reclassification of certain loans may require approval of the Special Assets Loan Committee. Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral. The impairment loan policy is the same for all segments within the commercial loan segment. For the consumer loan segment, large groups of smaller balance homogeneous loans are collectively evaluated for impairment. This evaluation subjects each of the Company’s homogenous pools to a historical loss factor derived from net charge-offs experienced over the preceding 24 quarters. The Company applies payments received on impaired loans to principal and interest based on the contractual terms until they are placed on nonaccrual status. All payments received are then applied to reduce the principal balance and recognition of interest income is terminated as previously discussed. Allowance for Loan Losses The provision for loan losses charged to operations is an amount sufficient to bring the ALL to an estimated balance that management considers adequate to absorb probable losses inherent in the portfolio. Loans are charged against the allowance when management believes the collectability of the principal is unlikely, while recoveries of amounts previously charged-off are credited to the ALL. Management’s determination of the adequacy of the ALL is based on an evaluation of the composition of the loan portfolio, the value and adequacy of collateral, current economic conditions, historical loan loss experience, and other risk factors. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions, particularly those affecting real estate values. Management believes that the ALL is adequate. The Company performs regular credit reviews of the loan portfolio to review the credit quality and adherence to its underwriting standards. The credit reviews include Annual Loan Servicing performed by Commercial Bankers in accordance with Commercial Loan Policy (CLP), relationship reviews that accompany annual loan renewals, and reviews by its Loan Review Group. Upon origination, each commercial loan is assigned a risk rating ranging from one to nine, with loans closer to one having less risk. This risk rating scale is the Company’s primary credit quality indicator. Consumer loans are not risk rated unless past due status, bankruptcy, or other event results in the assignment of a Substandard or worse risk rating in accordance with CLP. The Company has various committees that review and ensure that the ALL methodology is in accordance with GAAP and loss factors used appropriately reflect the risk characteristics of the loan portfolio. The Company’s ALL consists of specific, general, and qualitative components. Specific Reserve Component The specific reserve component relates to impaired loans. Upon being identified as impaired, for loans not considered to be collateral-dependent, an ALL is established when the discounted cash flows of the impaired loan are lower than the carrying value of that loan. The impairment of collateral-dependent loans is measured based on the fair value of the underlying collateral, less selling costs, compared to the carrying value of the loan. If the Company determines that the value of an impaired collateral dependent loan is less than the recorded investment in the loan, the Company charges off the deficiency if it is determined that such amount represents a confirmed loss. Typically, a loss is confirmed when the Company is moving towards foreclosure (or final disposition). The Company obtains independent appraisals from a pre-approved list of independent, third party appraisers located in the market in which the collateral is located. The Company’s approved appraiser list is continuously maintained to ensure the list only includes such appraisers that have the experience, reputation, character, and knowledge of the respective real estate market. At a minimum, it is ascertained that the appraiser is currently licensed in the state in which the property is located, experienced in the appraisal of properties similar to the property being appraised, has knowledge of current real estate market conditions and financing trends, and is reputable. The Company’s internal REVG, which reports to the Enterprise Risk Management group, performs either a technical or administrative review of all appraisals obtained. A technical review will ensure the overall quality of the appraisal, while an administrative review ensures that all of the required components of an appraisal are present. Independent appraisals or valuations are updated every 12 months for all impaired loans. The Company’s impairment analysis documents the date of the appraisal used in the analysis. Adjustments to appraised values are only permitted to be made by the REVG. The impairment analysis is reviewed and approved by senior Credit Administration officers and the Special Assets Loan Committee. External appraisals are the primary source to value collateral dependent loans; however, the Company may also utilize values obtained through other valuation sources. These alternative sources of value are used only if deemed to be more representative of value based on updated information regarding collateral resolution. Impairment analyses are updated, reviewed, and approved on a quarterly basis at or near the end of each reporting period. General Reserve Component The general reserve component covers non-impaired loans and is quantitatively derived from an estimate of credit losses adjusted for various qualitative factors applicable to both commercial and consumer loan segments. The estimate of credit losses is a function of the net charge-off historical loss experience to the average loan balance of the portfolio averaged during a period that management has determined to be adequately reflective of the losses inherent in the loan portfolio. The Company has implemented a rolling 24-quarter look back period, which is re-evaluated on a periodic basis to ensure the reasonableness of the period being used. The following table shows the types of qualitative factors management considers:
Acquired Loans – Acquired loans are recorded at their fair value at acquisition date without carryover of the acquiree’s previously established ALL, as credit discounts are included in the determination of fair value. The fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected on the loans and then applying a market-based discount rate to those cash flows. During evaluation upon acquisition, acquired loans are also classified as either acquired impaired (or PCI) or acquired performing. Acquired performing loans are accounted for under ASC 310-20, Receivables – Nonrefundable Fees and Other Costs. The difference between the fair value and unpaid principal balance of the loan at acquisition date (premium or discount) is amortized or accreted into interest income over the life of the loans. If the acquired performing loan has revolving privileges, it is accounted for using the straight-line method; otherwise, the effective interest method is used. Acquired impaired loans reflect credit quality deterioration since origination, as it is probable at acquisition that the Company will not be able to collect all contractually required payments. These PCI loans are accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality. The PCI loans are segregated into pools based on loan type and credit risk. Loan type is determined based on collateral type, purpose, and lien position. Credit risk characteristics include risk rating groups, nonaccrual status, and past due status. For valuation purposes, these pools are further disaggregated by maturity, pricing characteristics, and re-payment structure. PCI loans are written down at acquisition to fair value using an estimate of cash flows deemed to be collectible. Accordingly, such loans are no longer classified as nonaccrual even though they may be contractually past due because the Company expects to fully collect the new carrying values of such loans, which is the new cost basis arising from purchase accounting. Quarterly, management performs a recast of PCI loans based on updated future expected cash flows, which are updated through reassessment of default rates, loss severity, and prepayment speed assumptions. The excess of the cash flows expected to be collected over a pool’s carrying value is considered to be the accretable yield and is recognized as interest income over the estimated life of the loan or pool using the effective yield method. The accretable yield may change due to changes in the timing and amounts of expected cash flows; these changes are disclosed in Note 4 “Loans and Allowance for Loan Losses.” The excess of the undiscounted contractual balances due over the cash flows expected to be collected is considered to be the nonaccretable difference, which represents the estimate of credit losses expected to occur and was considered in determining the fair value of loan at the acquisition date. Any subsequent increases in expected cash flows over those expected at the acquisition date in excess of fair value are adjusted through an increase in the accretable yield on a prospective basis; any decreases in expected cash flows attributable to credit deterioration are recognized by recording a provision for loan losses. The PCI loans are and will continue to be subject to the Company’s internal and external credit review and monitoring. If further credit deterioration is experienced, such deterioration will be measured and the provision for loan losses will be increased. A loan will be removed from a pool (at its carrying value) only if the loan is sold, foreclosed, or assets are received in full satisfaction of the loan. Troubled Debt Restructurings - In situations where, for economic or legal reasons related to a borrower’s financial condition, the Company grants a concession in the loan structure to the borrower that it would not otherwise consider, the related loan is classified as a TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms as early as possible. These modified terms may include rate reductions, principal or interest forgiveness, extension of terms that are considered to be below market, conversion to interest only, and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. Restructured loans for which there was no rate concession, and therefore made at a market rate of interest, may subsequently be eligible to be removed from reportable TDR status in periods subsequent to the restructuring depending on the performance of the loan. The Company reviews previously restructured loans quarterly in order to determine whether any have performed, subsequent to the restructure, at a level that would allow for them to be removed from reportable TDR status. The Company generally would consider a change in this classification if the borrower is no longer experiencing financial difficulty, the loan is current or less than 30 days past due at the time the status change is being considered, the loan has performed under the restructured terms for a consecutive twelve-month period, and is no longer considered to be impaired. A loan may also be considered for removal from TDR status as a result of a subsequent restructure under certain restrictive circumstances. The removal of TDR designations must be approved by the Company's Special Asset Loan Committee. Loans removed from reportable TDR status continue to be evaluated for impairment. The significant majority of these loans have been subject to new credit decisions due to the improvement in the expected future cash flows, the financial condition of the borrower, and other factors considered during the re-underwriting. Premises and Equipment - Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method based on the type of asset involved. The Company’s policy is to capitalize additions and improvements and to depreciate the cost thereof over their estimated useful lives ranging from 3 to 50 years. Leasehold improvements are amortized over the shorter of the life of the related lease or the estimated life of the related asset. Maintenance and repairs are expensed as they are incurred. Goodwill and Intangible Assets - The Company has an aggregate goodwill balance of $727.2 million associated with previous merger transactions, which is associated with the commercial banking segment. Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009 is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Company has selected April 30th as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives, which range from 4 to 14 years, to their estimated residual values. Goodwill is the only intangible asset with an indefinite life included on the Company’s Consolidated Balance Sheets. Long-lived assets, including purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented on the Company's Consolidated Balance Sheets and reported at the lower of the carrying amount or fair value less costs to sell, would no longer depreciated. Management concluded that no circumstances indicating an impairment of these assets existed as of the balance sheet date. The Company performed its annual impairment testing on April 30, 2018 and determined that there was no impairment to its goodwill. Management performed a review through December 31, 2018 and concluded that no impairment existed as of the balance sheet date. The Company wrote off the portion of goodwill related to the mortgage company during 2018 because of the wind down of its operations throughout the year. Foreclosed Properties - Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis. When the carrying amount exceeds the acquisition date fair value less selling costs, the excess is charged off against the ALL. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell, any valuation adjustments occurring from post-acquisition reviews are charged to expense as incurred. Revenue and expenses from operations and changes in the valuation allowance are included in OREO and credit-related expenses, disclosed in a separate line item on the Company’s Consolidated Statements of Income. Transfers of Financial Assets - Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Bank Owned Life Insurance - The Company has purchased life insurance on certain key employees and directors. These policies are recorded at their cash surrender value and are included in a separate line item on the Company’s Consolidated Balance Sheets. Income generated from policies is recorded as noninterest income. At December 31, 2018 and 2017, the Company also had liabilities for post-retirement benefits payable to other partial beneficiaries under some of these life insurance policies of $10.5 million and $6.3 million, respectively. The Company is exposed to credit risk to the extent an insurance company is unable to fulfill its financial obligations under a policy. Derivatives - Derivatives are recognized as assets and liabilities on the Company’s Consolidated Balance Sheets and measured at fair value. The Company’s derivatives are interest rate swap agreements and interest rate lock commitments. The Company’s hedging policies permit the use of various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. All derivatives are recorded at fair value on the Consolidated Balance Sheets. The Company may be required to recognize certain contracts and commitments as derivatives when the characteristics of those contracts and commitments meet the definition of a derivative. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. The Company considers a hedge to be highly effective if the change in fair value of the derivative hedging instrument is within 80% to 125% of the opposite change in the fair value of the hedged item attributable to the hedged risk. If derivative instruments are designated as hedges of fair values, and such hedges are highly effective, both the change in the fair value of the hedge and the hedged item are included in current earnings. Fair value adjustments related to cash flow hedges are recorded in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of hedges are reflected in earnings as they occur. Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the interest income or interest expense associated with the hedged item. During the life of the hedge, the Company formally assesses whether derivatives designated as hedging instruments continue to be highly effective in offsetting changes in the fair value or cash flows of hedged items. If it is determined that a hedge has ceased to be highly effective, the Company will discontinue hedge accounting prospectively. At such time, previous adjustments to the carrying value of the hedged item are reversed into current earnings and the derivative instrument is reclassified to a trading position recorded at fair value. The Company enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. The period of time between issuance of a loan commitment, closing, and sale of the loan generally ranges from 30 to 120 days. The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Company is not exposed to material losses and will not realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is high due to their similarity. The market value of rate lock commitments and best efforts contracts is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset while taking into consideration the probability that the rate lock commitments will close. The fair value of the rate lock commitments is reported as a component of "Assets of discontinued operations" in the Company’s Consolidated Balance Sheets; the fair value of the Company’s best efforts forward delivery commitments is recorded as a component of "Liabilities of discontinued operations" of the Company’s Consolidated Balance Sheets. Any impact to income is recorded in current period earnings as a component of "Income (loss) on discontinued operations" on the Company’s Consolidated Statements of Income. At December 31, 2018, there were no outstanding rate lock commitments due to the wind down of UMG throughout 2018. Affordable Housing Entities - The Company invests in private investment funds that make equity investments in multifamily affordable housing properties that provide affordable housing tax credits for these investments. The activities of these entities are financed with a combination of invested equity capital and debt. For the years ended December 31, 2018 and December 31, 2017, the Company recognized amortization of $922,000 and $1.3 million, respectively, and tax credits of $1.1 million and $858,000, respectively, associated with these investments within “Income tax expense” on the Company’s Consolidated Statements of Income. The carrying value of the Company’s investments in these qualified affordable housing projects for the years ended December 31, 2018 and December 31, 2017 were $10.8 million and $11.0 million, respectively. At December 31, 2018 and December 31, 2017, the Company's recorded liability totaled $9.9 million and $7.3 million, respectively, for the related unfunded commitments, which are expected to be paid from 2018 to 2033. Loan Fees - Fees collected and certain costs incurred related to loan originations are deferred and amortized as an adjustment to interest income over the life of the related loans. Deferred fees and costs are recorded as an adjustment to loans outstanding using a method that approximates a constant yield. Stock Compensation Plan - The Company issues equity awards to employees and directors through either stock options, RSUs or PSUs. The Company complies with ASC 718, Compensation - Stock Compensation, which requires the costs resulting from all stock-based payments to employees be recognized in the financial statements. The fair value of stock options’ compensation cost is estimated at the date of grant, using the Black-Scholes option valuation model for determining fair value of stock options. No options were granted in 2018 or 2017. The market price of the Company’s common stock at the date of grant is used for nonvested stock awards. The fair value of PSUs granted in 2018 and 2017 is determined and fixed on the grant date based on the Company’s stock price, adjusted for the exclusion of dividend equivalents. The Monte Carlo simulation valuation model was used to determine the grant date fair value of PSUs granted in 2018 and 2017. The fair value of restricted stock is based on the trading price of the Company's stock on the date of the grant. ASC 718 requires the Company to estimate forfeitures when recognizing compensation expense and that this estimate of forfeitures be adjusted over the requisite service period or vesting schedule based on the extent to which actual forfeitures differ from such estimates. Changes in estimated forfeitures are recognized through a cumulative catch-up adjustment, which is recognized in the period of change, and also will affect the amount of estimated unamortized compensation expense to be recognized in future periods. For more information and tables refer to Note 15 “Employee Benefits and Stock Based Compensation.” Income Taxes - Deferred income tax assets and liabilities are determined using the asset and liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. Deferred taxes are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits on the Company's Consolidated Balance Sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes on the Company’s Consolidated Statements of Income. The Company did not record any material interest or penalties for the periods ending December 31, 2018, 2017, or 2016 related to tax positions taken. As of December 31, 2018 and 2017, there were no accruals for uncertain tax positions. The Company and its wholly-owned subsidiaries file a consolidated income tax return. Each entity provides for income taxes based on its contribution to income or loss of the consolidated group. On December 22, 2017, the Tax Act was signed into law. Refer to Note 16 “Income Taxes” for additional information on the impact of the Tax Act. Advertising Costs - The Company follows a policy of charging the cost of advertising to expense as incurred. Advertising costs are disclosed in a separate line item on the Company’s Consolidated Statements of Income. Earnings Per Common Share – Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding during the year. Diluted earnings per common share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and restricted stock and are determined using the treasury stock method. Comprehensive Income - Comprehensive income represents all changes in equity that result from recognized transactions and other economic events of the period. Other comprehensive income (loss) refers to revenues, expenses, gains, and losses under GAAP that are included in comprehensive income but excluded from net income, such as unrealized gains and losses on certain investments in debt and equity securities and interest rate swaps. Off Balance Sheet Credit Related Financial Instruments - In the ordinary course of business, the Company has entered into commitments to extend credit and standby letters of credit. Such financial instruments are recorded when they are funded. For more information and tables refer Note 9 “Commitments and Contingencies.” Fair Value - The Company follows ASC 820, Fair Value Measurements and Disclosures, to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. This codification clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants. ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy under ASC 820 based on these two types of inputs are as follows: Level 1 valuation is based on quoted prices in active markets for identical assets and liabilities; Level 2 valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the markets; and Level 3 valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. These unobservable inputs reflect the Company’s assumptions about what market participants would use and information that is reasonably available under the circumstances without undue cost and effort. For more specific information on the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value in the financial statements refer to Note 13 “Fair Value Measurements.” Concentrations of Credit Risk - Most of the Company’s activities are with customers located in portions of Central, Southwest, and Tidewater Virginia. Securities available for sale, loans, and financial instruments with off balance sheet risk also represent concentrations of credit risk and are discussed in Note 3 “Securities,” Note 4 “Loans and Allowance for Loan Losses,” and Note 11 “Stockholders' Equity,” respectively. Reclassifications – The accompanying consolidated financial statements and notes reflect certain reclassifications in prior periods to conform to the current presentation. Specifically, the Company historically classified former bank premises as OREO; however, the Company concluded former bank premises do not meet the definition of a non-performing asset and should not be included within the Company's non-performing asset disclosures. In addition, OREO has been reclassified to Other Assets within the Consolidated Balance Sheets for all periods presented. Adoption of New Accounting Standards - On January 1, 2018, the Company adopted ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606” and all subsequent amendments to the ASU (“Topic 606”). This ASU revised guidance for the recognition, measurement, and disclosure of revenue from contracts with customers. The guidance, as amended, is applicable to all entities and replaces a significant portion of existing industry and transaction-specific revenue recognition rules with a more principles-based recognition model. Most revenue associated with financial instruments, including interest income, loan origination fees, and credit card fees, is outside the scope of the guidance. Gains and losses on investment securities, derivatives, and sales of financial instruments are similarly excluded from the scope. The Company adopted this ASU using the modified retrospective approach, which requires a cumulative effect adjustment to retained earnings as of the beginning of the reporting period in which the entity first applies the new guidance. The adoption of Topic 606 did not have a material impact on the Company’s consolidated financial results but did result in expanded disclosures related to noninterest income and enhanced qualitative disclosures on the revenues within the scope of the new guidance. Refer to Note 14 “Revenue" for further discussion on the Company's accounting policies for revenue sources within the scope of Topic 606. On January 1, 2018, the Company adopted ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU requires an entity to, among other things: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in OCI the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The ASU provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The ASU also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. The adoption of ASU No. 2016-01 did not have a material impact on the Company’s consolidated financial statements and resulted in enhancements to the financial instrument disclosures. On May 1, 2018, the Company early adopted ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” This ASU simplifies the application of the hedge accounting guidance and improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The targeted improvements in ASU No. 2017-12 allowed the Company a one-time transfer of certain debt securities from HTM to AFS. The Company adopted this ASU using the modified retrospective approach. As part of this adoption, the Company made a one-time election to transfer eligible HTM securities to the AFS category in order to optimize the investment portfolio management for capital and risk management considerations. The Company transferred HTM securities with a carrying amount of $187.4 million, which resulted in a $400,000 increase to AOCI. Refer to Note 3 "Securities" and Note 11 "Stockholders' Equity" for further discussion regarding the adoption. On May 1, 2018, the Company early adopted ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU allows for a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Act and requires certain disclosures about the stranded tax effects. The Company reclassified approximately $107,000 from AOCI to retained earnings during the second quarter 2018. Refer to Note 11 "Stockholders' Equity" for further discussion regarding the adoption. The net impact to retained earnings of the adoption of ASU No. 2017-12 and ASU No. 2018-02 was $293,000. Recent Accounting Pronouncements - In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This ASU requires lessees to put most leases on their balance sheets, but recognize expenses in the income statement in a manner similar to today’s accounting. This ASU also eliminates the real estate-specific provisions and changes the guidance on sale-leaseback transactions, initial direct costs, and lease executory costs for all entities. For lessors, this ASU modifies the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company plans to adopt Topic 842 in the first quarter of 2019 via the modified retrospective transition approach; which is required for leases existing at, or entered into after the date of adoption, to be presented in accordance with the new standard requirements. The Company plans to elect the package of practical expedients permitted under the transition guidance within the new standard, which allows the Company to carry forward historical lease classifications. In addition, the Company will elect the short-term lease exemption practical expedient in which leases with an initial term of twelve months or less are not capitalized and are not recorded on the balance sheet. Lastly, the Company plans to elect the practical expedient related to accounting for lease and non-lease components as a single lease component. While the Company has evaluated this ASU and the effect of related disclosures, the Company expects that the primary effect of adoption will be to require recording right-of-use assets and corresponding lease obligations for current operating leases, which is estimated at approximately $51.5 million, as of the adoption of this standard, which is based on the Company’s current outstanding lease population. Upon adoption, the Company will have a new system of record; implement new accounting policies and internal controls related to the implementation of the standard. The Company does not expect the adoption of this standard to materially impact the consolidated net earnings and capital ratios; additionally there will be no impact on cash flows. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This ASU updates the existing guidance to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. This ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The CECL model will replace the Company's current accounting for PCI and impaired loans. This ASU also amends the AFS debt securities OTTI model. This ASU is effective for fiscal years beginning after December 15, 2019. The Company has established a cross-functional governance structure for the implementation of CECL. The Company is continuing to evaluate the impact ASU No. 2016-13 will have on its consolidated financial statements. This ASU contains significant differences from existing GAAP, and the implementation of this ASU may result in increases to the Company's reserves for credit losses of financial instruments; however, the Company is still finalizing its estimate of the quantitative impact of this standard. In August 2018, the FASB issued ASU No. 2018-15, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." This ASU amends the Intangibles—Goodwill and Other Topic of the Accounting Standards Codification to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This ASU is effective for the Company for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company does not expect this ASU to have a material effect on its financial statements. |
ACQUISITIONS & DISPOSITIONS |
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ACQUISITIONS & DISPOSITIONS | ACQUISITIONS & DISPOSITIONS See Note 21 “Subsequent Events” for additional information on the Merger with Access that was completed on February 1, 2019. Xenith Acquisition On January 1, 2018, the Company completed its acquisition of Xenith, a bank holding company based in Richmond, Virginia. Holders of shares of Xenith's common stock received 0.9354 shares of the Company's common stock in exchange for each share of Xenith's common stock, resulting in the Company issuing 21,922,077 shares of the Company's common stock at a fair value of $794.8 million. In addition, the Company paid $6.2 million in exchange for Xenith's outstanding stock options. The transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the acquisition date. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition, in accordance with ASC 350, Intangibles-Goodwill and Other. Measurement period adjustments that were made in the fourth quarter of 2018 include immaterial changes due to finalizing estimates of fair value for loans, fixed assets, leases, and deferred taxes. Purchase accounting has been finalized for this acquisition; the measurement period is closed. The goodwill is not expected to be deductible for tax purposes. The Company currently estimates that the amortizable intangibles assets will be amortized over 10 years using sum-of-years digits. The following table provides an assessment of the consideration transferred, assets acquired, and liabilities assumed as of the date of the acquisition (dollars in thousands):
The acquired loans were recorded at fair value at the acquisition date without carryover of Xenith’s previously established ALL. The fair value of the loans was determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected on the loans and leases and then applying a market-based discount rate to those cash flows. In this regard, the acquired loans were segregated into pools based on loan type and credit risk. Loan type was determined based on collateral type, purpose, and lien position. Credit risk characteristics included risk rating groups (pass rated loans and adversely classified loans) and past due status. For valuation purposes, these pools were further disaggregated by maturity, pricing characteristics (e.g., fixed-rate, adjustable-rate) and re-payment structure (e.g., interest only, fully amortizing, balloon). The acquired loans were divided into loans with evidence of credit quality deterioration which are accounted for under ASC 310-30, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality, (acquired impaired) and loans that do not meet these criteria, which are accounted for under ASC 310-20, Receivables - Nonrefundable Fees and Other Costs, (acquired performing). The fair values of the acquired performing loans were $2.4 billion and the fair values of the acquired impaired loans were $79.3 million. The gross contractually required principal and interest payments receivable for acquired performing loans was $2.7 billion. The best estimate of contractual cash flows not expected to be collected related to the acquired performing loans is $20.6 million. The following table presents the acquired impaired loans receivable at the acquisition date (dollars in thousands):
The following table presents certain pro forma information as if Xenith had been acquired on January 1, 2016. These results combine the historical results of Xenith in the Company's Consolidated Statements of Income and, while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on January 1, 2016. In particular, no adjustments have been made to eliminate the amount of Xenith’s provision for credit losses that would not have been necessary had the acquired loans been recorded at fair value as of January 1, 2016. Pro forma adjustments below include the net impact of accretion as well as the elimination of merger-related costs. The Company expects to achieve further operating cost savings and other business synergies, including branch closures, as a result of the acquisition which are not reflected in the pro forma amounts below (dollars in thousands):
Merger-related costs associated with the acquisition of Xenith were $37.8 million and $5.4 million for the years ended December 31, 2018 and 2017, respectively. Such costs include legal and accounting fees, lease and contract termination expenses, system conversion, and employee severances, which have been expensed as incurred. DHFB Acquisition On April 1, 2018, the Bank completed its acquisition of DHFB, a Roanoke, Virginia-based investment advisory firm with approximately $600.0 million in assets under management and advisement at the time of the acquisition. DHFB operates as a subsidiary of the Bank. The acquisition date fair value of consideration transferred totaled $7.6 million, which consisted of $4.8 million in cash and the remainder being contingent on achieving certain performance metrics. The contingent consideration is carried at fair value and is reported as a component of "Other Liabilities" in the Company's Consolidated Balance Sheets. The fair value of this liability will be assessed at each reporting period. In connection with this transaction, the Company recorded $3.7 million in goodwill and $4.1 million of amortizable intangible assets, which primarily relate to the value of customer relationships. The goodwill is not deductible for tax purposes. The Company is amortizing these intangible assets over the period of expected benefit, which ranges from 5 to 10 years using various methods. The transaction was accounted for using the acquisition method of accounting, and accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the acquisition date. The fair values are subject to refinement for up to one year after the closing date of the acquisition, in accordance with ASC 350, Intangibles-Goodwill and Other. Measurement period adjustments that were made in the fourth quarter of 2018 include updates to the consideration paid as well as immaterial changes to the fair value of fixed assets and other liabilities. The Company did not incur any material expenses related to the acquisition of DHFB. OAL Acquisition On July 1, 2018, ODCM, a subsidiary of the Bank, completed its acquisition of OAL, a McLean, Virginia-based investment advisory firm with approximately $400.0 million in assets under management and advisement at the time of the acquisition. OAL operates as a subsidiary of ODCM. The acquisition date fair value of consideration transferred totaled $6.0 million, which consisted of $3.4 million in cash and the remainder being contingent on achieving certain performance metrics. The contingent consideration is carried at fair value and is reported as a component of "Other Liabilities" in the Company's Consolidated Balance Sheets. The fair value of this liability will be assessed at each reporting period. In connection with this transaction, the Company recorded $2.0 million in goodwill and $3.8 million of amortizable intangible assets, which primarily relate to the value of customer relationships. The goodwill is not deductible for tax purposes. The Company is amortizing these intangible assets over the period of expected benefit, which ranges from 1 to 14 years using various methods. The transaction was accounted for using the acquisition method of accounting, and accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the acquisition date. The fair values are subject to refinement for up to one year after the closing date of the acquisition, in accordance with ASC 350, Intangibles-Goodwill and Other. Measurement period adjustments that were made in the fourth quarter of 2018 include updates to the consideration paid as well as immaterial changes to the fair value of fixed assets. The Company did not incur any material expenses related to the acquisition of OAL. ODCM On May 31, 2016, the Bank completed its acquisition of ODCM, a Charlottesville, Virginia based registered investment advisor with nearly $300.0 million in assets under management at the time of the acquisition. The acquisition date fair value of consideration transferred totaled $9.1 million, which consisted of $4.1 million in cash, $453,000 in stock, and the remainder being subject to a three-year earn out provision and contingent on achieving certain performance metrics. The contingent consideration, which was $816,000 at December 31, 2018, is carried at fair value and is reported as a component of “Other Liabilities” on the Consolidated Balance Sheets. The fair value of this liability will be assessed at each reporting period. In connection with the transaction, the Company recorded $4.7 million in goodwill and $4.5 million of amortizable assets, which primarily relate to the value of customer relationships. The Company is amortizing these intangibles assets over the period of expected benefit, which ranges from 5 to 10 years using a straight-line method. The transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the acquisition date. The fair values were subject to refinement for up to one year after the closing date of the acquisition. The Company did not incur any material expenses related to the acquisition of ODCM. Fair Value Premiums and Discounts The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments had the following impact on the Consolidated Statements of Income during the years ended December 31, 2018, 2017, and 2016 (dollars in thousands):
(1) Loan acquisition-related fair value adjustments accretion is included in "Interest and fees on loans" in the "Interest and dividend income" section of the Company's Consolidated Statements of Income. (2) Building and lease acquisition-related fair value adjustments amortization is included in "Occupancy expenses" in the "Noninterest expense" section of the Company's Consolidated Statements of Income. (3) Core deposit and other intangible premium amortization is included in "Amortization of intangible assets" in the "Noninterest expense" section of the Company's Consolidated Statements of Income. (4) Borrowings acquisition-related fair value adjustments (amortization) accretion is included in "Interest on long-term borrowings" in the "Interest Expense" section of the Company's Consolidated Statements of Income. (5) Certificate of deposit acquisition-related fair value adjustments accretion is included in "Interest on deposits" in the "Interest expense" section of the Company's Consolidated Statements of Income. UMG Disposition On May 23, 2018, the Bank announced that it had entered into an agreement with a third-party mortgage company, TFSB, to allow TFSB to offer residential mortgages from certain Bank locations on the terms and conditions set forth in the agreement. Concurrently with this arrangement, the Bank began the process of winding down the operations of UMG, the Company's reportable mortgage segment. Refer to Note 18 "Segment Reporting & Discontinued Operations" for further discussion of this agreement. Sale of Loans On June 29, 2018, the Bank entered into an agreement to sell substantially all of the assets and certain specific liabilities of Shore Premier, consisting primarily of marine loans totaling approximately $383.9 million, for a purchase price consisting of approximately $375.0 million in cash and 1,250,000 shares of the purchasing company's common stock.. The purchase of the loans was completed on June 29, 2018 and became effective at the end of the day on June 30, 2018. The sale generated an after-tax gain of approximately $15.8 million, net of transaction and other related costs. Refer to Note 3 "Securities" and Note 10 "Derivatives" for further discussion on the Shore Premier sale. During 2018 the Company sold the common stock received as consideration. On June 29, 2018, the Bank sold approximately $206.3 million in consumer home improvement loans that had been originated through a third-party lending program. These loans were sold at par. |
SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SECURITIES | SECURITIES Available for Sale The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of December 31, 2018 and 2017 are summarized as follows (dollars in thousands):
The following table shows the gross unrealized losses and fair value (dollars in thousands) of the Company’s available for sale securities with unrealized losses that are not deemed to be other-than-temporarily impaired as of December 31, 2018 and 2017. These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.
As of December 31, 2018, there were $385.4 million, or 138 issues, of individual available for sale securities that had been in a continuous loss position for more than 12 months. These securities had an unrealized loss of $10.2 million and consisted of municipal obligations, mortgage-backed securities, and other securities. As of December 31, 2017, there were $197.6 million, or 71 issues, of individual securities that had been in a continuous loss position for more than 12 months. These securities had an unrealized loss of $4.2 million and consisted of municipal obligations, mortgage-backed securities, corporate bonds, and other securities. The Company has determined that these securities are temporarily impaired at December 31, 2018 and 2017 for the reasons set out below: Mortgage-backed securities. This category’s unrealized losses are primarily the result of interest rate fluctuations. Because the decline in market value is attributable to changes in interest rates and not credit quality, the Company does not intend to sell the investments, and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired. Also, the majority of the Company’s mortgage-backed securities are agency-backed securities, which have a government guarantee. Obligations of state and political subdivisions. This category’s unrealized losses are primarily the result of interest rate fluctuations and also a certain few ratings downgrades brought about by the impact of the credit crisis on states and political subdivisions. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired. Corporate bonds. The Company’s unrealized losses in corporate debt securities are related to both interest rate fluctuations and ratings downgrades for a limited number of securities. The majority of the securities remain investment grade and the Company’s analysis did not indicate the existence of a credit loss. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments and the accounting standard of "more likely than not" has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired. The following table presents the amortized cost and estimated fair value of AFS securities as of December 31, 2018 and 2017, by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
For information regarding the estimated fair value of available for sale securities which were pledged to secure public deposits, repurchase agreements, and for other purposes as permitted or required by law as of December 31, 2018 and 2017, see Note 9 "Commitments and Contingencies." Held to Maturity During the second quarter of 2018, the Company adopted ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." As part of this adoption, the Company made a one-time election to transfer eligible HTM securities to the AFS category in order to optimize the investment portfolio management for capital and risk management considerations. These securities had a carrying value of $187.4 million on the date of the transfer. The Company reports HTM securities on the Consolidated Balance Sheets at carrying value. Carrying value is amortized cost which includes any unamortized unrealized gains and losses recognized in accumulated other comprehensive income prior to reclassifying the securities from securities available for sale to securities held to maturity. Investment securities transferred into the HTM category from the AFS category are recorded at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in accumulated other comprehensive income and in the carrying value of the HTM securities. Such unrealized gains or losses are accreted over the remaining life of the security with no impact on future net income. The carrying value, gross unrealized gains and losses, and estimated fair values of securities held to maturity as of December 31, 2018 and 2017 are summarized as follows (dollars in thousands):
(1) The carrying value includes $119,000 and $3.6 million of net unrealized gains present at the time of transfer from available for sale securities, net of any accretion, as of December 31, 2018 and 2017, respectively. The following table shows the gross unrealized losses and fair value (dollars in thousands) of the Company’s held to maturity securities with unrealized losses that are not deemed to be other-than-temporarily impaired as of December 31, 2018 and 2017. These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.
As of December 31, 2018, there were no issues of individual HTM securities that had been in a continuous loss position for more than 12 months. As of December 31, 2017, there was $1.1 million, or two issues, of individual HTM securities that had been in a continuous loss position for more than 12 months and had an aggregate unrealized loss of $31,000. These securities are municipal bonds with minimal credit exposure. For this reason, the Company has determined that these securities in a loss position were temporarily impaired as of December 31, 2017. Because the Company did not intend to sell these investments and the accounting standard of "more likely than not" has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired. The following table presents the amortized cost and estimated fair value of HTM securities as of December 31, 2018 and 2017, by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
(1) The carrying value includes $119,000 and $3.6 million of net unrealized gains present at the time of transfer from available for sale securities, net of any accretion, as of December 31, 2018 and 2017, respectively. For information regarding the estimated fair value of HTM securities which were pledged to secure public deposits, repurchase agreements, and for other purposes as permitted or required by law as of December 31, 2018 and 2017, see Note 9 "Commitments and Contingencies." Restricted Stock, at cost Due to restrictions placed upon the Bank’s common stock investment in the Federal Reserve Bank and the FHLB, these securities have been classified as restricted equity securities and carried at cost. These restricted securities are not subject to the investment security classifications and are included as a separate line item on the Company’s Consolidated Balance Sheets. At both December 31, 2018 and 2017, the FHLB required the Bank to maintain stock in an amount equal to 4.25% of outstanding borrowings and a specific percentage of the Bank’s total assets. The Federal Reserve Bank required the Bank to maintain stock with a par value equal to 6% of its outstanding capital at both December 31, 2018 and 2017. Restricted equity securities consist of Federal Reserve Bank stock in the amount of $52.6 million and $27.6 million for December 31, 2018 and 2017 and FHLB stock in the amount of $72.0 million and $47.7 million as of December 31, 2018 and 2017, respectively. Other-Than-Temporary Impairment During each quarter and at year end the Company conducts an assessment of the securities portfolio for OTTI consideration. The assessment considers factors such as external credit ratings, delinquency coverage ratios, market price, management’s judgment, expectations of future performance, and relevant industry research and analysis. An impairment is other-than-temporary if any of the following conditions exist: the entity intends to sell the security; it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis; or the entity does not expect to recover the security’s entire amortized cost basis (even if the entity does not intend to sell). If a credit loss exists, but an entity does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, the impairment is other-than-temporary and should be separated into a credit portion to be recognized in earnings and the remaining amount relating to all other factors recognized as other comprehensive loss. Based on the assessments during the years ended December 31, 2018 and 2017, and in accordance with the guidance, no OTTI was recognized. Realized Gains and Losses The following table presents the gross realized gains and losses on and the proceeds from the sale of securities during the years ended December 31, 2018, 2017, and 2016 (dollars in thousands).
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LOANS AND ALLOWANCE FOR LOAN LOSSES |
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Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES Loans are stated at their face amount, net of deferred fees and costs, and consist of the following at December 31, 2018 and 2017 (dollars in thousands):
(1) Loans, as presented, are net of deferred fees and costs totaling $5.1 million and $1.3 million as of December 31, 2018 and 2017, respectively. The following table shows the aging of the Company’s loan portfolio, by segment, at December 31, 2018 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The following table shows the aging of the Company’s loan portfolio, by segment, at December 31, 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. Nonaccrual loans totaled $27.0 million, $21.7 million, and $10.0 million at December 31, 2018, 2017 and 2016, respectively. Had these loans performed in accordance with their original terms, interest income of approximately $2.3 million, $698,000, and $452,000 would have been recorded in 2018, 2017, and 2016, respectively. All nonaccrual loans were included in the impaired loan disclosure in 2018 and 2017. The following table shows the PCI loan portfolios, by segment and their delinquency status, at December 31, 2018 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The following table shows the PCI loan portfolios, by segment and their delinquency status, at December 31, 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The Company measures the amount of impairment by evaluating loans either in their collective homogeneous pools or individually. The following table shows the Company’s impaired loans, excluding PCI loans, by segment at December 31, 2018 and 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The following table shows the average recorded investment and interest income recognized for the Company’s impaired loans, excluding PCI loans, by segment for the years ended December 31, 2018, 2017 and 2016 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The Company considers TDRs to be impaired loans. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession that it would not otherwise consider to the borrower for economic or legal reasons related to the borrower’s financial difficulties. All loans that are considered to be TDRs are evaluated for impairment in accordance with the Company’s allowance for loan loss methodology and are included in the preceding impaired loan tables. For the year ended December 31, 2018, the recorded investment in TDRs prior to modifications was not materially impacted by the modification. The following table provides a summary, by segment, of TDRs that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and TDRs that have been placed in nonaccrual status, which are considered to be nonperforming, as of December 31, 2018 and 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The Company considers a default of a TDR to occur when the borrower is 90 days past due following the restructure or a foreclosure and repossession of the applicable collateral occurs. During the years ended December 31, 2018 and 2017, the Company did not have any material loans that went into default that had been restructured in the twelve-month period prior to the time of default. The following table shows, by segment and modification type, TDRs that occurred during the years ended December 31, 2018 and 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The following tables show the allowance for loan loss activity by segment for the year ended December 31, 2018, 2017, and 2016. The tables below include the provision for loan losses. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes.
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes.
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The following tables show the loan and allowance for loan loss balances based on impairment methodology by segment as of December 31, 2018 and 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes.
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The Company uses a risk rating system and past due status as the primary credit quality indicators for the loan categories. The risk rating system on a scale of 0 through 9 is used to determine risk level as used in the calculation of the allowance for loan losses; on those loans without a risk rating, the Company uses past due status to determine risk level. The risk levels, as described below, do not necessarily follow the regulatory definitions of risk levels with the same name. A general description of the characteristics of the risk levels follows: Pass is determined by the following criteria: •Risk rated 0 loans have little or no risk and are with General Obligation Municipal Borrowers; •Risk rated 1 loans have little or no risk and are generally secured by cash or cash equivalents; •Risk rated 2 loans have minimal risk to well qualified borrowers and no significant questions as to safety; •Risk rated 3 loans are satisfactory loans with strong borrowers and secondary sources of repayment; •Risk rated 4 loans are satisfactory loans with borrowers not as strong as risk rated 3 loans and may exhibit a greater degree of financial risk based on the type of business supporting the loan; or •Loans that are not risk rated but that are 0 to 29 days past due. Special Mention is determined by the following criteria: •Risk rated 5 loans are watch loans that warrant more than the normal level of supervision and have the possibility of an event occurring that may weaken the borrower’s ability to repay; •Risk rated 6 loans have increasing potential weaknesses beyond those at which the loan originally was granted and if not addressed could lead to inadequately protecting the Company’s credit position; or •Loans that are not risk rated but that are 30 to 89 days past due. Substandard is determined by the following criteria: •Risk rated 7 loans are substandard loans and are inadequately protected by the current sound worth or paying capacity of the obligor or the collateral pledged; these have well defined weaknesses that jeopardize the liquidation of the debt with the distinct possibility the Company will sustain some loss if the deficiencies are not corrected; or •Loans that are not risk rated but that are 90 to 149 days past due. Doubtful is determined by the following criteria: •Risk rated 8 loans are doubtful of collection and the possibility of loss is high but pending specific borrower plans for recovery, its classification as a loss is deferred until its more exact status is determined; •Risk rated 9 loans are loss loans which are considered uncollectable and of such little value that their continuance as bankable assets is not warranted; or •Loans that are not risk rated but that are over 149 days past due. The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of December 31, 2018 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of December 31, 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The following table shows the recorded investment in only PCI loans by segment with their related risk level as of December 31, 2018 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The following table shows the recorded investment in only PCI loans by segment with their related risk level as of December 31, 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. Loans acquired are originally recorded at fair value, with certain loans being identified as impaired at the date of purchase. The fair values were determined based on the credit quality of the portfolio, expected future cash flows, and timing of those expected future cash flows. The following shows changes in the accretable yield for loans accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality, for the periods presented (dollars in thousands):
(1) This line item represents changes in the cash flows expected to be collected due to the impact of non-credit changes such as prepayment assumptions, changes in interest rates on variable rate PCI loans, and discounted payoffs that occurred in the year. The carrying value of the Company’s PCI loan portfolio, accounted for under ASC 310-30, totaled $90.2 million at December 31, 2018 and $39.0 million at December 31, 2017. The outstanding balance of the Company’s PCI loan portfolio totaled $113.5 million at December 31, 2018 and $47.9 million at December 31, 2017. The carrying value of the Company’s acquired performing loan portfolio, accounted for under ASC 310-20, Receivables – Nonrefundable Fees and Other Costs, totaled $2.0 billion and $892.4 million at December 31, 2018 and 2017, respectively; the remaining discount on these loans totaled $30.3 million and $13.7 million, respectively. |
PREMISES AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Amounts presented exclude discontinued operations. Refer to Note 18 "Segment Reporting & Discontinued Operations" in Item 8 "Financial Statements and Supplementary Data", of this Form 10-K for further discussion regarding discontinued operations. The Company’s premises and equipment as of December 31, 2018 and 2017 are as follows (dollars in thousands):
Depreciation expense for the years ended December 31, 2018, 2017, and 2016 was $13.6 million, $10.9 million, and $9.8 million, respectively. Amortization of the fair value mark related to acquired buildings for the year ended December 31, 2018 was $228,000; there was no amortization in prior years. Future minimum rental payments required under non-cancelable operating leases for premises that have initial or remaining terms in excess of one year as of December 31, 2018 are as follows for the years ending (dollars in thousands):
The leases contain options to extend for periods up to 20 years. Rental expense for the years ended December 31, 2018, 2017, and 2016 totaled $9.2 million, $5.9 million, and $6.1 million, respectively. Amortization of the fair value mark related to leases for the year ended December 31, 2018 was $130,000; there was no amortization in prior years. |
INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS | INTANGIBLE ASSETS During 2018, the Company acquired Xenith, DHFB, and OAL as part of the Company's strategic growth plan. The Company’s intangible assets consist of core deposits, goodwill, and other intangibles arising from acquisitions. The Company has determined that core deposit intangibles have finite lives and amortizes them over their estimated useful lives. Core deposit intangible assets are being amortized over the period of expected benefit, which ranges from 4 to 14 years, using an accelerated method. Other intangible assets are being amortized over the period of expected benefit, which ranges from 5 to 10 years, using a straight-line method. Refer to Note 2 "Acquisitions & Dispositions" for further information regarding intangible assets. In accordance with ASC 350, Intangibles-Goodwill and Other, the Company reviews the carrying value of indefinite lived intangible assets at least annually or more frequently if certain impairment indicators exist. The Company performed its annual impairment testing in the second quarter of 2018 and wrote off goodwill in the amount of $864,000 related to the wind down of UMG which is now included in discontinued operations. Information concerning intangible assets with a finite life is presented in the following table (dollars in thousands):
Amortization expense of intangibles for the years ended December 31, 2018, 2017, and 2016 totaled $12.8 million, $6.1 million, and $7.2 million, respectively. As of December 31, 2018, the estimated remaining amortization expense of intangibles for the years ended is as follows (dollars in thousands):
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DEPOSITS |
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Deposits, Interest-bearing and Noninterest-bearing, Alternative [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEPOSITS | DEPOSITS The major types of interest-bearing deposits are as follows for the years ended December 31, (dollars in thousands):
As of December 31, 2018, the scheduled maturities of time deposits are as follows for the years ended December 31, (dollars in thousands):
The amount of time deposits held in CDARS accounts was $118.3 million and $13.9 million as of December 31, 2018 and 2017, respectively. These deposits had a maturity of less than one year. The Company classifies deposit overdrafts as loans held for investment within the "Consumer and all other" category. As of December 31, 2018 and 2017, these deposits totaled $2.0 million and $1.3 million, respectively. |
BORROWINGS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BORROWINGS | BORROWINGS Short-term Borrowings The Company classifies all borrowings that will mature within a year from the date on which the Company enters into them as short-term borrowings. Total short-term borrowings consist primarily of advances from the FHLB and other lines of credit. Also included in total short-term borrowings are securities sold under agreements to repurchase, which are secured transactions with customers and generally mature the day following the date sold. Total short-term borrowings consist of the following as of December 31, 2018 and 2017 (dollars in thousands):
The Bank maintains federal funds lines with several correspondent banks; the remaining available balance was $382.0 million and $227.0 million at December 31, 2018 and 2017 respectively. The Company maintains an alternate line of credit at a correspondent bank; the available balance was $25.0 million at both December 31, 2018 and 2017. The Company has certain restrictive covenants related to certain asset quality, capital, and profitability metrics associated with these lines and is considered to be in compliance with these covenants as of December 31, 2018. Additionally, the Company had a collateral dependent line of credit with the FHLB of up to $4.0 billion and $2.7 billion at December 31, 2018 and 2017, respectively. Long-term Borrowings In connection with several previous bank acquisitions, the Company issued and acquired trust preferred capital notes of $58.5 million and $32.0 million, respectively. In connection with the acquisition of Xenith on January 1, 2018, the Company acquired trust preferred capital notes totaling $55.0 million with a fair value discount of $9.9 million. The remaining fair value discount on all acquired trust preferred capital notes was $15.7 million at December 31, 2018. The trust preferred capital notes currently qualify for Tier 1 capital of the Company for regulatory purposes. The Company's trust preferred capital notes consist of the following as of December 31, 2018:
(1) The total of the trust preferred capital securities and investments in the respective trusts represents the principal asset of the Company's junior subordinated debt securities with like maturities and like interest rates to the capital securities. The Company's investment in the trusts is reported in "Other Assets" on the Consolidated Balance Sheets. (2) Rate as of December 31, 2018. During the fourth quarter of 2016, the Company issued $150.0 million of fixed-to-floating rate subordinated notes with an initial fixed interest rate of 5.00% through December 15, 2021. The interest rate then changes to a floating rate of LIBOR plus 3.175% through its maturity date in December 15, 2026. In connection with the acquisition of Xenith on January 1, 2018, the Company acquired $8.5 million of subordinated notes with a fair value premium of $259,000, which was $154,000 at December 31, 2018. The acquired subordinated notes have a fixed interest rate of 6.75% and a maturity date of June 30, 2025. At December 31, 2018 and 2017, the contractual principal reported for all subordinated notes was $158.5 million and $150.0 million respectively, with a remaining issuance discount of $1.6 million and $1.8 million, respectively. The subordinated notes qualify as Tier 2 capital for the Company for regulatory purposes. The Company has certain restrictive covenants related to certain asset quality, capital, and profitability metrics associated with the acquired subordinated notes and was considered to be in compliance with these covenants as of December 31, 2018. On August 23, 2012, the Company modified its fixed rate FHLB advances to floating rate advances, which resulted in reducing the Company’s FHLB borrowing costs. In connection with this modification, the Company incurred a prepayment penalty of $19.6 million on the original advances, which is included as a component of long-term borrowings on the Company’s Consolidated Balance Sheets. In accordance with ASC 470-50, Modifications and Extinguishments, the Company is amortizing this prepayment penalty over the term of the modified advances using the effective rate method. The amortization expense is included as a component of interest expense on long-term borrowings on the Company’s Consolidated Statements of Income. Amortization expense for the years ended December 31, 2018, 2017, and 2016 was $2.0 million, $1.9 million, and $1.9 million, respectively. As of December 31, 2018, the Company had long-term advances from the FHLB consisting of the following (dollars in thousands):
(1) Interest rates calculated using non-rounded numbers. As of December 31, 2017, the Company had long-term advances from the FHLB consisting of the following (dollars in thousands):
(1) Interest rates calculated using non-rounded numbers. For information on the carrying value of loans and securities pledged as collateral on FHLB advances as of December 31, 2018 and 2017, refer to Note 9 "Commitments and Contingencies". As of December 31, 2018, the contractual maturities of long-term debt are as follows for the years ending (dollars in thousands):
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation Matters In the ordinary course of its operations, the Company and its subsidiaries are parties to various legal proceedings. Based on the information presently available, and after consultation with legal counsel, management believes that the ultimate outcome in such proceedings, in the aggregate, will not have a material adverse effect on the business, financial condition, or results of operations of the Company. Financial Instruments with Off-Balance Sheet Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve elements of credit and interest rate risk in excess of the amount recognized on the Company’s Consolidated Balance Sheets. The contractual amounts of these instruments reflect the extent of the Company’s involvement in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and letters of credit written is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Unless noted otherwise, the Company does not require collateral or other security to support off-balance sheet financial instruments with credit risk. The Company considers credit losses related to off-balance sheet commitments by undergoing a similar process in evaluating losses for loans that are carried on the balance sheet. The Company considers historical loss rates, current economic conditions, risk ratings, and past due status among other factors in the consideration of whether credit losses are inherent in the Company’s off-balance sheet commitments to extend credit. The Company also records an indemnification reserve that includes balances relating to mortgage loans previously sold based on historical statistics and loss rates. As of December 31, 2018 and 2017, the Company's reserves for off-balance sheet credit risk and indemnification were $1.4 million and $795,000, respectively, and includes discontinued operations. Refer to Note 18 "Segment Reporting & Discontinued Operations" in Item 8 "Financial Statements and Supplementary Data", of this Form 10-K for further discussion regarding discontinued operations. Commitments to extend credit are agreements to lend to customers as long as there are no violations of any conditions established in the contracts. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Letters of credit are conditional commitments issued by the Company to guarantee the performance of customers to third parties. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The following table presents the balances of commitments and contingencies as of December 31, (dollars in thousands):
The Company must maintain a reserve against its deposits in accordance with Regulation D of the Federal Reserve Act. For the final weekly reporting period in the periods ended December 31, 2018 and 2017, the aggregate amount of daily average required reserves were approximately $58.0 million and $77.9 million, respectively, and was satisfied by deposits maintained with the Federal Reserve Bank. As of December 31, 2018, the Company had approximately $18.9 million in deposits in other financial institutions, of which $13.5 million served as collateral for cash flow and loan swap derivatives. The Company had approximately $3.7 million and $12.3 million in deposits in other financial institutions that were uninsured at December 31, 2018 and 2017, respectively. At least annually, the Company’s management evaluates the loss risk of its uninsured deposits in financial counterparties. For asset/liability management purposes, the Company uses interest rate swap agreements to hedge various exposures or to modify the interest rate characteristics of various balance sheet accounts. See Note 10 “Derivatives” for additional information. As part of the Company's liquidity management strategy, it pledges collateral to secure various financing and other activities that occur during the normal course of business. The following tables present the types of collateral pledged, at December 31, 2018 and 2017 (dollars in thousands):
(1) Balance represents market value. (2) Balance represents book value.
(1) Balance represents market value. (2) Balance represents book value. |
DERIVATIVES |
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Summary of Derivative Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES | DERIVATIVES The Company is exposed to economic risks arising from its business operations and uses derivatives primarily to manage risk associated with changing interest rates, and to assist customers with their risk management objectives. The Company designates certain derivatives as hedging instruments in a qualifying hedge accounting relationship (cash flow or fair value hedge). The remaining are classified as free-standing derivatives consisting of customer accommodation loan swaps and interest rate lock commitments that do not qualify for hedge accounting. Cash Flow Hedges The Company designates derivatives as cash flow hedges when they are used to manage exposure to variability in cash flows related to forecasted transactions on variable rate borrowings such as trust preferred capital notes, FHLB borrowings and certain prime based and commercial loans. The Company uses interest rate swap agreements as part of its hedging strategy by exchanging a notional amount, equal to the principal amount of the borrowings or commercial loans, for fixed-rate interest based on benchmarked interest rates. The original terms and conditions of the interest rate swaps vary and range in length with a maximum hedging time through November 2022. Amounts receivable or payable are recognized as accrued under the terms of the agreements. All swaps were entered into with counterparties that met the Company’s credit standards, and the agreements contain collateral provisions protecting the at-risk party. The Company believes that the credit risk inherent in the contract is not significant. The Company assesses the effectiveness of each hedging relationship on a periodic basis using statistical regression analysis. The Company also measures the ineffectiveness of each hedging relationship using the change in variable cash flows method which compares the cumulative changes in cash flows of the hedging instrument relative to cumulative changes in the hedged item’s cash flows. In accordance with ASC 815, Derivatives and Hedging, the effective portions of the derivatives’ unrealized gains or losses are recorded as a component of other comprehensive income. Based on the Company’s assessment, its cash flow hedges are highly effective, but to the extent that any ineffectiveness exists in the hedge relationships, the amounts would be recorded in interest income or interest expense on the Company’s Consolidated Statements of Income. On June 13, 2016, the Company terminated three interest rate swaps designated as cash flow hedges prior to their respective maturity dates. The unrealized gain of $1.3 million within accumulated other comprehensive income will be reclassified into earnings over a three-year period, the term of the hedged item, using the effective interest method. The estimated net amount of gains expected to be reclassified into earnings within the next twelve months is $297,000. Fair Value Hedge Derivatives are designated as fair value hedges when they are used to manage exposure to changes in the fair value of certain financial assets and liabilities, referred to as the hedged items, which fluctuate in value as a result of movements in interest rates. Loans: During the normal course of business, the Company enters into swap agreements to convert certain long-term fixed-rate loans to floating rates to hedge the Company’s exposure to interest rate risk. The Company pays a fixed interest rate to the counterparty and receives a floating rate from the same counterparty calculated on the aggregate notional amount. For the years ended December 31, 2018 and 2017, the aggregate notional amount of the related hedged items for certain long-term fixed rate loans totaled $87.6 million and $81.0 million, respectively, and the fair value of the related hedged items was an unrealized loss of $1.6 million and $1.2 million, respectively. AFS Securities: During the fourth quarter 2018, the Company entered into a swap agreement to hedge the interest rate risk on a portion of its fixed rate available for sale securities. For the year ended December 31, 2018, the aggregate notional amount of the related hedged items of the available for sale securities totaled $50.0 million and the fair value of the related hedged items was an unrealized loss of $1.4 million. The Company applies hedge accounting in accordance with ASC 815, Derivatives and Hedging, and the fair value hedge and the underlying hedged item, attributable to the risk being hedged, are recorded at fair value with unrealized gains and losses being recorded on the Company’s Consolidated Statements of Income. Statistical regression analysis is used to assess hedge effectiveness, both at inception of the hedging relationship and on an ongoing basis. The regression analysis involves regressing the periodic change in fair value of the hedging instrument against the periodic changes in fair value of the asset being hedged due to changes in the hedged risk. The Company’s fair value hedges continue to be highly effective and had no material impact on the Consolidated Statements of Income, but if any ineffectiveness exists, portions of the unrealized gains or losses would be recorded in interest income or interest expense on the Company’s Consolidated Statements of Income. Loan Swaps During the normal course of business, the Company enters into interest rate swap loan relationships (“loan swaps”) with borrowers to meet their financing needs. Upon entering into the loan swaps, the Company enters into offsetting positions with a third party in order to minimize interest rate risk. These back-to-back loan swaps qualify as financial derivatives with fair values as reported in “Other Assets” and “Other Liabilities” on the Company’s Consolidated Balance Sheets. Interest Rate Lock Commitments During the normal course of business, the Company enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (“rate lock commitments”). Rate lock commitments on mortgage loans that are intended to be sold in the secondary market are considered to be derivatives. The period of time between issuance of a loan commitment, closing, and sale of the loan generally ranges from 30 to 120 days. The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. The correlation between the rate lock commitments and the best efforts contracts is high due to their similarity. The market values of rate lock commitments and best efforts forward delivery commitments is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset, while taking into consideration the probability that the rate lock commitments will close. The fair value of the rate lock commitments is reported as a component of “Assets of discontinued operations" on the Company’s Consolidated Balance Sheets; the fair value of the Company’s best efforts forward delivery commitments is recorded as a component of “Liabilities of discontinued operations” on the Company’s Consolidated Balance Sheets. Any impact to income is recorded in current period earnings as a component of “Income (loss) on discontinued operations” on the Company’s Consolidated Statements of Income. At December 31, 2018, there were no outstanding rate lock commitments due to the wind down of UMG throughout 2018. The following table summarizes key elements of the Company’s derivative instruments as of December 31, 2018 and 2017, segregated by derivatives that are considered accounting hedges and those that are not (dollars in thousands):
(1) Notional amounts are not recorded on the Company's Consolidated Balance Sheet and are generally used only as a basis on which interest and other payments are determined. (2) Balances represent fair value of derivative financial instruments. The following table summarizes the carrying value of the Company’s hedged assets in fair value hedges and the associated cumulative basis adjustments included in those carrying values as of December 31, 2018 (dollars in thousands):
(1) These amounts include the amortized cost basis of the investment securities designated in hedging relationships for which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2018, the amortized cost basis of this portfolio was $224 million, the amount of the designated hedged item was $50 million, and the cumulative basis adjustment associated with this hedge was $1.4 million. (2) Carrying value represents amortized cost. |
STOCKHOLDERS' EQUITY |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Serial Preferred Stock The Company has the authority to issue up to 500,000 shares of serial preferred stock with a par value of $10.00 per share. As of December 31, 2018 and December 31, 2017, the Company had no shares issued or outstanding. Accumulated Other Comprehensive Income (Loss) The change in accumulated other comprehensive income (loss) for the year ended December 31, 2018 is summarized as follows, net of tax (dollars in thousands):
(1) During the second quarter of 2018, the Company adopted ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities". As part of this adoption, the Company made a one-time election to transfer eligible HTM securities to the AFS category. The transfer of these securities resulted in an increase of approximately $400,000 to AOCI and is included as unrealized gains (losses) on AFS securities above. (2) During the second quarter of 2018, the Company adopted ASU No. 2018-02 "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." As part of this adoption, the Company reclassified approximately $107,000 of these amounts from AOCI to retained earnings. (3) During the first quarter of 2018, the Company adopted ASU No. 2016-01 "Financial Instruments - Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities." As part of this adoption, the Company reclassified approximately $61,000 of these amounts from AOCI to retained earnings. The change in accumulated other comprehensive income (loss) for the year ended December 31, 2017 is summarized as follows, net of tax (dollars in thousands):
The change in accumulated other comprehensive income (loss) for the year ended December 31, 2016 is summarized as follows, net of tax (dollars in thousands):
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REGULATORY MATTERS AND CAPITAL |
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Regulatory Capital Requirements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REGULATORY MATTERS AND CAPITAL | REGULATORY MATTERS AND CAPITAL Capital resources represent funds, earned or obtained, over which financial institutions can exercise greater or longer control in comparison with deposits and borrowed funds. Management seeks to maintain a capital structure that will assure an adequate level of capital to support anticipated asset growth and to absorb potential losses, yet allow management to effectively leverage its capital to maximize return to shareholders. 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 financial statements of the Company and the Bank. Under capital adequacy guidelines and the regulatory framework for PCA, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. PCA provisions are not applicable to financial holding companies and bank holding companies, but only to their bank subsidiaries. As of December 31, 2018, the most recent notification from the Federal Reserve Bank categorized the Bank as “well capitalized” under the regulatory framework for PCA. To be categorized as “well-capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage, and common equity Tier 1 ratios as set forth in the following tables. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Company and the Bank’s capital amounts and ratios are also presented in the following table at December 31, 2018 and 2017 (dollars in thousands):
In July 2013, the FRB issued a final rule that makes technical changes to its market risk capital rules to align them with the Basel III regulatory capital framework and meet certain requirements of the Dodd-Frank Act. The phase-in period for the final rules began on January 1, 2015, with full compliance with the final rules to be phased in by January 1, 2019. Refer to Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” section “Capital Resources” in this Form 10-K for additional information. |
FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company follows ASC 820, Fair Value Measurements and Disclosures, to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. This codification clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants. ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy under ASC 820 based on these two types of inputs are as follows:
The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements. Derivative instruments As discussed in Note 10 “Derivatives,” the Company records derivative instruments at fair value on a recurring basis. The Company utilizes derivative instruments as part of the management of interest rate risk to modify the re-pricing characteristics of certain portions of the Company’s interest-bearing assets and liabilities. The Company has contracted with a third-party vendor to provide valuations for derivatives using standard valuation techniques and therefore classifies such valuations as Level 2. Third party valuations are validated by the Company using Bloomberg Valuation Service’s derivative pricing functions. No material differences were identified during the validation as of December 31, 2018 and 2017. The Company has considered counterparty credit risk in the valuation of its derivative assets and has considered its own credit risk in the valuation of its derivative liabilities. In the second quarter of 2018, the Bank announced that it had entered into an agreement with a third-party mortgage company to allow TFSB to offer residential mortgages from certain Bank locations on the terms and conditions set forth in the agreement. Concurrently with this arrangement, the Bank began the process of winding down the operations of UMG, the Company's reportable mortgage segment. Prior to this announcement, during the normal course of business, the Company entered into interest rate lock commitments related to the origination of mortgage loans held for sale, as well as best effort forward delivery commitments to mitigate interest rate risk; these instruments were recorded at estimated fair value based on the value of the underlying loan, which in turn was based on quoted prices for similar loans in the secondary market. This value, however, was adjusted by a pull-through rate, which considered the likelihood that the loan in a lock position would ultimately close. The pull-through rate was derived from the Company’s internal data and was adjusted using significant management judgment. The pull-through rate was largely dependent on the loan processing stage that a loan was currently in and the change in prevailing interest rates from the time of the rate lock. As such, interest rate lock commitments are classified as Level 3. An increase in the pull-through rate utilized in the fair value measurement of the interest rate lock commitment derivative resulted in positive fair value adjustments, while a decrease in the pull-through rate resulted in a negative fair value adjustment. As a result of the UMG wind down, at December 31, 2018, the Company had no interest rate locks. Interest rate locks had a weighted average pull-through rate of approximately 80% as of December 31, 2017. Interest rate lock commitments as of December 31, 2017 were reported as a component of "Assets of discontinued operations" in the Company’s Consolidated Balance Sheets. AFS Securities AFS securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data (Level 2). If the inputs used to provide the evaluation for certain securities are unobservable and/or there is little, if any, market activity, then the security would fall to the lowest level of the hierarchy (Level 3). The Company’s investment portfolio is primarily valued using fair value measurements that are considered to be Level 2. The Company has contracted with a third-party portfolio accounting service vendor for valuation of its securities portfolio. The vendor’s primary source for security valuation is IDC, which evaluates securities based on market data. IDC utilizes evaluated pricing models that vary by asset class and include available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. The vendor utilizes proprietary valuation matrices for valuing all municipals securities. The initial curves for determining the price, movement, and yield relationships within the municipal matrices are derived from industry benchmark curves or sourced from a municipal trading desk. The securities are further broken down according to issuer, credit support, state of issuance, and rating to incorporate additional spreads to the industry benchmark curves. The Company primarily uses Bloomberg Valuation Service, an independent information source that draws on quantitative models and market data contributed from over 4,000 market participants, to validate third party valuations. Any material differences between valuation sources are researched by further analyzing the various inputs that are utilized by each pricing source. No material differences were identified during the validation as of December 31, 2018 and 2017. The carrying value of restricted Federal Reserve Bank and FHLB stock approximates fair value based on the redemption provisions of each entity and is therefore excluded from the following table. Loans held for sale Loans held for sale are carried at fair value. These loans consist of residential loans originated for sale in the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale (Level 2). As a result of the UMG wind down, at December 31, 2018, the Company had no loans held for sale. Loans held for sale at December 31, 2017 are included in "Assets of discontinued operations" on the Company's Consolidated Balance Sheets. Refer to Note 18 "Segment Reporting & Discontinued Operations" for further discussion. The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis at December 31, 2018 and 2017 (dollars in thousands):
Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements. Impaired loans Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreements will not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Collateral dependent loans are reported at the fair value of the underlying collateral if repayment is solely from the underlying value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Company’s collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data. When evaluating the fair value, management may discount the appraisal further if, based on their understanding of the market conditions, it is determined the collateral is further impaired below the appraised value (Level 3). For the years ended December 31, 2018 and 2017, the Level 3 weighted average adjustments related to impaired loans were 5.3% and 3.0%, respectively. The value of business equipment is based upon an outside appraisal, of one year or less, if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Collateral dependent impaired loans allocated to the ALL are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Company’s Consolidated Statements of Income. Foreclosed Properties & Former Bank Premises Foreclosed properties and former bank premises are evaluated for impairment at least quarterly by the Bank’s Special Asset Loan Committee and any necessary write downs to fair values are recorded as impairment and included as a component of noninterest expense. Fair values of foreclosed properties and former bank premises are carried at fair value less selling costs. Fair value is based upon independent market prices, appraised values of the collateral, or management’s estimation of the value of the collateral. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the foreclosed asset as Level 3 valuation. For the years ended December 31, 2018 and 2017, the Level 3 weighted average adjustments related to foreclosed property were approximately 3.7% and 22.5%, respectively. For the years ended December 31, 2018 and 2017, there were no Level 3 weighted average adjustments related to bank premises. Total valuation expenses related to foreclosed properties for the years ended December 31, 2018, 2017, 2016 were $1.3 million, $1.6 million, and $1.0 million, respectively. Total valuation expenses related to former bank premises for the years ended December 31, 2018, 2017 and 2016 were $0, $339,000 and $0, respectively. The following tables summarize the Company’s financial assets that were measured at fair value on a nonrecurring basis at December 31, 2018 and 2017 (dollars in thousands):
ASC 825, Financial Instruments, requires disclosure about fair value of financial instruments for interim periods and excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Cash and cash equivalents For those short-term instruments, the carrying amount is a reasonable estimate of fair value. HTM Securities The Company’s investment portfolio is primarily valued using fair value measurements that are considered to be Level 2. The Company has contracted with a third-party portfolio accounting service vendor for valuation of its securities portfolio. The vendor’s primary source for security valuation is IDC, which evaluates securities based on market data. IDC utilizes evaluated pricing models that vary by asset class and include available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. The vendor utilizes proprietary valuation matrices for valuing all municipals securities. The initial curves for determining the price, movement, and yield relationships within the municipal matrices are derived from industry benchmark curves or sourced from a municipal trading desk. The securities are further broken down according to issuer, credit support, state of issuance, and rating to incorporate additional spreads to the industry benchmark curves. The Company primarily uses Bloomberg Valuation Service, an independent information source that draws on quantitative models and market data contributed from over 4,000 market participants, to validate third party valuations. Any material differences between valuation sources are researched by further analyzing the various inputs that are utilized by each pricing source. No material differences were identified during the validation as of December 31, 2018 and 2017. Loans With the adoption of ASU No. 2016-01 during the first quarter of 2018, the fair value of loans at December 31, 2018 were estimated using an exit price, representing the amount that would be expected to be received if the Company sold the loans. At December 31, 2017, the fair value of performing loans were estimated by discounting expected future cash flows using a yield curve that is constructed by adding a loan spread to a market yield curve. Loan spreads are based on spreads currently observed in the market for loans of similar type and structure. Fair value for impaired loans and their respective level within the fair value hierarchy are described in the previous disclosure related to fair value measurements of assets that are measured on a nonrecurring basis. Bank owned life insurance The carrying value of BOLI approximates fair value. The Company records these policies at their cash surrender value, which is estimated using information provided by insurance carriers. Deposits The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. With the adoption of ASU No. 2016-01 during the first quarter of 2018, the fair value of certificates of deposits at December 31, 2018 were valued using a discounted cash flow calculation that includes a market rate analysis of the current rates offered by market participants for certificates of deposits that mature in the same period. At December 31, 2017, the fair value of certificates of deposit was estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. Borrowings The carrying value of the Company’s repurchase agreements is a reasonable estimate of fair value. With the adoption of ASU No. 2016-01 during the first quarter of 2018, subordinated debt and trust preferred cash flows at December 31, 2018 are forecasted at the stated coupon rate and discounted back to the measurement date using the prevailing market rate. The prevailing market rate is based on implied market yields for recently issued debt with similar durations by institutions of similar size. Other borrowings, including subordinated debt and trust preferred at December 31, 2017 are discounted using the current yield curve for the same type of borrowing. For borrowings with embedded optionality, a third-party source is used to value the instrument. Accrued interest The carrying amounts of accrued interest approximate fair value. The carrying values and estimated fair values of the Company’s financial instruments as of December 31, 2018 and 2017 are as follows (dollars in thousands):
The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. Borrowers with fixed rate obligations, however, are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. |
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REVENUE | REVENUE On January 1, 2018, the Company adopted ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606” ("Topic 606"), and all subsequent amendments to the ASU No. 2014-09. Using Topic 606 guidelines and other authoritative guidance, the Company concluded that Topic 606 applies to noninterest income excluding out of scope revenue such as mortgage banking income, gains on securities transactions, and trading revenue (i.e., derivatives). Public entities are required to disclose (1) revenue disaggregated into categories that show how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors; (2) contract balances; (3) a description of when performance obligations are satisfied; and (4) significant judgments made in evaluating when a customer obtains control of promised goods or services for performance obligations satisfied at a point in time. The majority of the Company’s noninterest income comes from short term contracts associated with fees for services provided on deposit accounts, credit cards, and wealth management accounts and is being accounted for in accordance with Topic 606. Typically, the duration of a contract does not extend beyond the services performed; therefore, the Company concluded that discussion regarding contract balances is immaterial. Additionally, due to the short duration of most customer contracts the revenue from which constitutes noninterest income, the Company will not need to make many judgments that would affect the amount and timing of revenue. The Company’s performance obligations on revenue from interchange fees and deposit accounts are generally satisfied immediately, when the transaction occurs or by month-end. Performance obligations on revenue from fiduciary and asset management fees are generally satisfied monthly or quarterly. For a majority of fee income on deposit accounts the Company is a principal controlling the promised good or service before transferring it to the customer. However, for income related to most wealth management income, the Company is an agent responsible for arranging for the provision of goods and services by another party. Noninterest income disaggregated by major source, for the years ended December 31, 2018, 2017, and 2016, consisted of the following (dollars in thousands):
(1) Income within scope of Topic 606. (2) Includes income within the scope of Topic 606 of $4.4 million, $2.3 million, and $2.3 million for the years ended December 31, 2018, 2017, and 2016, respectively. The remaining balance is outside the scope of Topic 606. (3) Noninterest income for the discontinued mortgage segment is reported in Note 18, "Segment Reporting & Discontinued Operations." |
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Employee Benefits and Share-based Compensation, Noncash [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION | EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION The Company has a 401(k) Plan designed to qualify under Section 401 of the Code that allows employees to defer a portion of their salary compensation as savings for retirement. The 401(k) Plan provides for the Company to match employee contributions based on each employee’s elected contribution percentage. For each employee’s 1% through 3% dollar contributions, the Company will match 100% of such dollar contributions, and for each employee’s 4% through 5% dollar contributions, the Company will match 50% of such dollar contributions. All employees are eligible to participate in the 401(k) Plan after meeting minimum age and period of service requirements. The Company also has an ESOP. All full and part-time employees of the Company with 1,000 hours of service are eligible to participate in the ESOP plan. The Company makes discretionary profit-sharing contributions into the 401(k) Plan, ESOP, and in cash bonus payments. Company discretionary contributions to both the 401(k) Plan and the ESOP are allocated to participant accounts in proportion to each participant’s compensation and vest according to the respective plan's vesting schedule. Employee contributions to the ESOP are not allowed. Amounts presented include discontinued operations. Refer to Note 18 "Segment Reporting & Discontinued Operations" in Item 8 "Financial Statements and Supplementary Data", of this Form 10-K for further discussion regarding discontinued operations. The following 401(k) Plan match and other discretionary contributions were made to the Company’s employees, in accordance with the plans described above, in 2018, 2017, and 2016 (dollars in thousands):
The Company maintains certain deferred compensation arrangements with employees and certain current and former members of the Bank’s Boards of Directors. Under these deferred compensation plans, the Company had an obligation of $11.8 million at December 31, 2018 and $11.1 million at December 31, 2017, The Company owns life insurance policies on plan beneficiaries as an informal funding vehicle to meet future benefit obligations. On January 29, 2015, the Company’s Board of Directors adopted the Union Bankshares Corporation Stock and Incentive Plan (the “Amended and Restated SIP”), which amended and restated the former equity compensation plan (the “2011 Plan”). The Amended and Restated SIP became effective on April 21, 2015 upon shareholder approval. The Company may grant awards under the amended plan until April 20, 2025. The Amended and Restated SIP amended the 2011 Plan to, among other things, increase the maximum number of shares of the Company’s common stock issuable under the plan from 1,000,000 to 2,500,000 and add non-employee directors of the Company and certain subsidiaries, as well as regional advisory boards, as potential participants in the plan. The increase in shares in the Amended and Restated SIP includes shares that had been granted previously under the 2011 Plan. As of December 31, 2018, there were 1,300,663 shares available for future issuance in the Amended and Restated SIP. The Amended and Restated SIP provides for the granting of stock-based awards to key employees and non-employee directors of the Company and its subsidiaries in the form of: (i) stock options; (ii) restricted stock awards (“RSAs”), (iii) restricted stock units (“RSUs”), (iv) stock awards; (v) performance share units (“PSUs”); and performance cash awards. The Company issues new shares to satisfy stock-based awards. For option awards, the option price cannot be less than the fair market value of the stock on the grant date. Stock option awards have a maximum term of ten years from the date of grant, and generally become exercisable over a 5-year period beginning on the first anniversary of the date of grant. No stock options have been granted since February 2012. RSAs and PSUs typically have vesting schedules over three to four-year periods and the expense is recognized over the vesting period. For the years ended December 31, 2018, 2017, and 2016, the Company recognized stock-based compensation expense (included in salaries and benefits expense) (dollars in thousands, except per share data) as follows:
Stock Options The following table summarizes the stock option activity during the year ended December 31, 2018:
During the year ended December 31, 2018, there were 72,743 stock options exercised with a total intrinsic value (the amount by which the stock price exceeded the exercise price) and fair value of approximately $1.9 million and $2.8 million, respectively. Cash received from the exercise of stock options for the year ended December 31, 2018 was approximately $983,000, and the tax benefit realized from tax deductions associated with options exercised during the year was approximately $390,000. As of December 31, 2018, all stock options were fully vested. The total intrinsic value of all stock options outstanding was $656,000 as of December 31, 2018. During the year ended December 31, 2017, there were 63,476 stock options exercised with a total intrinsic value (the amount by which the stock price exceeded the exercise price) and fair value of approximately $1.2 million and $2.2 million, respectively. Cash received from the exercise of stock options for the year ended December 31, 2017 was approximately $1.0 million, and the tax benefit realized from tax deductions associated with options exercised during the year was approximately $370,000. The fair value of all stock options vested during 2017 was approximately $47,000 and the total intrinsic value of all stock options outstanding was $2.7 million as of December 31, 2017. During the year ended December 31, 2016, there were 88,409 stock options exercised with a total intrinsic value (the amount by which the stock price exceeded the exercise price) and fair value of approximately $1.2 million and $2.6 million, respectively. Cash received from the exercise of stock options for the year ended December 31, 2016 was approximately $1.4 million, and the tax benefit realized from tax deductions associated with options exercised during the year was approximately $381,000. The fair value of all stock options vested during 2016 was approximately $159,000 and the total intrinsic value of all stock options outstanding was $3.9 million as of December 31, 2016. Restricted Stock The Amended and Restated SIP permits the granting of RSAs. Generally, RSAs vest 50% on each of the third and fourth anniversaries from the date of the grant. The value of the restricted stock awards was calculated by multiplying the fair market value of the Company’s common stock on the grant date by the number of shares awarded. Employees have the right to vote the shares and to receive cash or stock dividends for RSAs, if any. Nonvested shares of restricted stock are included in the computation of basic earnings per share. The following table summarizes the restricted stock activity for the year ended December 31, 2018:
Performance Stock PSUs are granted to certain employees at no cost to the recipient and are subject to vesting based on achieving certain performance metrics; the grant of PSUs is subject to approval by the Company’s Compensation Committee at its sole discretion. PSUs may be paid in cash or shares of common stock or a combination thereof. Holders of PSUs have no right to vote the shares represented by the units. In 2018, the PSUs awarded were market based awards with the number of PSUs ultimately earned based on the Company’s total shareholder return as measured over the performance period.
During years ended December 31, 2018, 2017 and 2016 PSUs were awarded with a market based component based on total shareholder return. The fair value of each PSU granted is estimated on the date of grant using the Monte Carlo simulation lattice model that uses the assumptions noted in the following table:
(1) Calculated as the ratio of the current dividend paid per the stock price on the date of grant. (2) Represents the remaining performance period as of the grant date (3) Based on the historical volatility for the period commensurate with the expected life of the PSUs. (4) Based upon the zero-coupon U.S. Treasury rate commensurate with the expected life of the PSUs on the grant date. (5) Assumptions disclosed represent those used in the primary annual issuance. The estimated unamortized compensation expense, net of estimated forfeitures, related to restricted stock and performance stock issued and outstanding as of December 31, 2018 that will be recognized in future periods is as follows (dollars in thousands):
At December 31, 2018, there was $11.3 million of total unrecognized compensation cost related to nonvested stock-based compensation arrangements granted under the Amended and Restated SIP. The cost is expected to be recognized through 2022. |
INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES The Company files income tax returns in the U.S., the Commonwealth of Virginia, and other states. With few exceptions, the Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years prior to 2015. On December 22, 2017, the Tax Act was signed into law. The Company applied the guidance in SAB 118 when accounting for the enactment-date effects of the Tax Act in 2017 and throughout 2018. Among other things, the Tax Act permanently reduced the corporate tax rate to 21% from the prior maximum rate of 35%, effective for tax years including or commencing January 1, 2018. As a result of the reduction of the corporate tax rate to 21%, companies were required to revalue their deferred tax assets and liabilities as of the date of enactment, with resulting tax effects accounted for in the fourth quarter of 2017. During 2017, the Company recorded $6.1 million in additional tax expense based on the Company's analysis of the impact of the Tax Act. As of December 31, 2018, the Company had to complete our accounting for all of the enactment-date income tax effects of the Tax Act. No additional adjustments related the Tax Act were recorded in 2018. Net deferred tax assets and liabilities consist of the following components as of December 31, 2018 and 2017 (dollars in thousands):
At December 31, 2018, the Company had federal net operating loss carryforwards of approximately $272.3 million, of which approximately $252.4 million under pre-2018 law can be carried forward 20 years, and $19.9 million that can be carried forward indefinitely. The Company also had state net operating loss carryforwards of approximately $267.3 million which will begin to expire after 2026. In assessing the ability to realize deferred tax assets, management considers the scheduled reversal of temporary differences, projected future taxable income, and tax planning strategies in accordance with ASC 740-10-30. Based on its latest analysis, at December 31, 2018, management concluded that it is more likely than not that the Company would be able to fully realize its deferred tax asset related to net operating losses generated at the federal and state level. A significant portion of the net operating losses were obtained in the acquisition of Xenith at the beginning of 2018. The Bank is not subject to a state income tax in its primary place of business (Virginia). The Company’s other subsidiaries are subject to state income taxes and have generated losses for state income tax purposes. The Company has analyzed the tax positions taken or expected to be taken in its tax returns and concluded it has no liability related to uncertain tax positions in accordance with applicable ASC 740, Accounting for Uncertainty in Income Taxes, regulations. The provision for income taxes charged to continuing operations for the years ended December 31, 2018, 2017, and 2016 consists of the following (dollars in thousands):
(1) The deferred tax expense for the year ended December 31, 2017 includes the impact of the Tax Act. The income tax expense differs from the amount of income tax determined by applying the U.S. federal income tax rate to pre-tax income for the years ended December 31, 2018, 2017, and 2016, due to the following (dollars in thousands):
The effective tax rates were 16.7%, 31.2%, and 25.5% for years ended December 31, 2018, 2017, and 2016, respectively. Tax credits totaled approximately $1.1 million, $858,000, and $2.0 million for the years ended December 31, 2018, 2017, and 2016, respectively. The changes in the effective tax rates for 2018 and 2017 were primarily related to the impact of the Tax Act. |
EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the weighted average number of common shares outstanding during the period, including the effect of dilutive potential common shares outstanding attributable to stock awards. The following table presents earnings per share from continuing operations, discontinued operations and total net income available to common shareholders for the years ended December 31, (in thousands except per share data):
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SEGMENT REPORTING & DISCONTINUED OPERATIONS |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT REPORTING & DISCONTINUED OPERATIONS | SEGMENT REPORTING & DISCONTINUED OPERATIONS On May 23, 2018, the Bank announced that it had entered into an agreement with a third-party mortgage company TFSB to allow TFSB to offer residential mortgages from certain Bank locations on the terms and conditions set forth in the agreement. Concurrently with this arrangement, the Bank began the process of winding down the operations of UMG, the Company's reportable mortgage segment. Effective at the close of business June 1, 2018, UMG was no longer originating mortgages in its name. The decision to exit the mortgage business was based on a number of strategic priorities and other factors, including the additional investment in the business required to achieve the necessary scale to be competitive. As a result of this decision, the community bank segment is the only remaining reportable segment and does not require separate reporting disclosures. As of December 31, 2018, the Company's Consolidated Balance Sheets included assets from discontinued operations of $1.5 million, which did not include loans held for sale. The Company also reported $1.7 million as liabilities of discontinued operations. As of December 31, 2017, the Company's Consolidated Balance Sheets included assets from discontinued operations of $44.7 million which included $40.7 million of loans held for sale. The Company also reported $3.7 million as liabilities of discontinued operations. Management believes there are no material on-going obligations with respect to the mortgage banking business that have not been recorded in the Company's consolidated financial statements. The following table presents summarized operating results of the discontinued mortgage segment at December 31, 2018, 2017 and 2016, respectively (dollars in thousands):
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RELATED PARTY TRANSACTIONS |
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Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In the ordinary course of business, the Company may have loans issued to its executive officers, directors, and principal shareholders. Pursuant to its policy, such loans are issued on the same terms as those prevailing at the time for comparable loans to unrelated persons and do not involve more than the normal risk of collectability. |
PARENT COMPANY FINANCIAL INFORMATION |
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Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PARENT COMPANY FINANCIAL INFORMATION | PARENT COMPANY FINANCIAL INFORMATION The primary source of funds for the dividends paid by Union Bankshares Corporation (for this note only, the “Parent Company”) is dividends received from its subsidiaries. The payments of dividends by the Bank to the Parent Company are subject to certain statutory limitations which contemplate that the current year earnings and earnings retained for the two preceding years may be paid to the Parent Company without regulatory approval. As of December 31, 2018, the aggregate amount of unrestricted funds that could be transferred from the Bank to the Parent Company without prior regulatory approval totaled approximately $220.5 million, or 11.46%, of the consolidated net assets. Financial information for the Parent Company is as follows: PARENT COMPANY CONDENSED BALANCE SHEETS AS OF DECEMBER 31, 2018 and 2017 (Dollars in thousands)
PARENT COMPANY CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2018, 2017, and 2016 (Dollars in thousands)
PARENT COMPANY CONDENSED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2018, 2017, and 2016 (Dollars in thousands)
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SUBSEQUENT EVENTS (Notes) |
12 Months Ended |
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Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company’s management has evaluated subsequent events through February 27, 2019, the date the financial statements were available to be issued. Access Acquisition On February 1, 2019, the Company completed the acquisition of Access, pursuant to the Agreement and Plan of Reorganization dated as of October 4, 2018, as amended on December 7, 2018, including a related Plan of Merger (the “Merger Agreement”). Pursuant to the Merger Agreement, Access's common shareholders received 0.75 shares of the Company’s common stock in exchange for each share of Access common stock, with cash paid in lieu of fractional shares, resulting in the Company issuing 15,842,026 shares of common stock. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Company | The Company - Headquartered in Richmond, Virginia, the Company is the largest community banking organization headquartered in Virginia and, as of December 31, 2018, operated in all major banking markets throughout the Commonwealth. The Company is the holding company for Union Bank & Trust, which provides banking, trust, and wealth management services and, as of December 31, 2018, had a statewide presence of 140 bank branches, seven of which were operated as Xenith Bank, a division of Union Bank & Trust of Richmond, Virginia, and approximately 188 ATMs. As of December 31, 2018, non-bank affiliates of the Company included: Union Insurance Group, LLC, which provides various lines of insurance products; Old Dominion Capital Management, Inc., Outfitter Advisors, Ltd., and Dixon, Hubard, Feinour & Brown, Inc., which provide investment advisory services. |
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Principles of Consolidation | Principles of Consolidation - The accounting policies and practices of Union Bankshares Corporation and subsidiaries conform to GAAP and follow general practices within the banking industry. The consolidated financial statements include the accounts of the Company, which is a financial holding company and a bank holding company that owns all of the outstanding common stock of its banking subsidiary, Union Bank & Trust, which owns Union Insurance Group, LLC, Old Dominion Capital Management, Inc., and Dixon, Hubard, Feinour & Brown, Inc. The Company’s Statutory Trusts, wholly owned subsidiaries of the Company, were formed for the purpose of issuing redeemable trust preferred capital notes in connection with two of the Company’s acquisitions prior to 2006. ASC 860, Transfers and Servicing, precludes the Company from consolidating Statutory Trusts I and II. The subordinated debts payable to the trusts are reported as liabilities of the Company. All significant inter-company balances and transactions have been eliminated. |
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Use of Estimates | Use of Estimates - The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. 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 ALL, the valuation of goodwill and intangible assets, OREO, deferred tax assets and liabilities, other-than-temporary impairment of securities, and the fair value of financial instruments. |
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Variable Interest Entities | Variable Interest Entities - Current accounting guidance states that if a business enterprise is the primary beneficiary of a variable interest entity, the assets, liabilities, and results of the activities of the variable interest entity should be included in the consolidated financial statements of the business enterprise. An entity is deemed to be the primary beneficiary of a variable interest entity if that entity has both the power to direct the activities that most significantly impact its economic performance; and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the variable interest entity. Management has evaluated the Company’s investment in variable interest entities. The Company’s primary exposure to variable interest entities are the trust preferred securities structures. This accounting guidance has not had a material impact on the financial condition or operating results of the Company. |
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Business Combinations and Divestitures | Business Combinations and Divestitures - Business combinations are accounted for under ASC 805, Business Combinations, using the acquisition method of accounting. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. To determine the fair values, the Company utilizes third party valuations, appraisals, and internal valuations based on discounted cash flow analysis or other valuation techniques. Under the acquisition method of accounting, the Company will identify the acquiree and the closing date and apply applicable recognition principles and conditions. If they are necessary to implement its plan to exit an activity of an acquiree, costs that the Company expects, but is not obligated, to incur in the future are not liabilities at the acquisition date, nor are costs to terminate the employment or relocate an acquiree’s employees. The Company does not recognize these costs as part of applying the acquisition method. Instead, the Company recognizes these costs as expenses in its post-combination financial statements in accordance with other applicable GAAP. Merger-related costs are costs the Company incurs to effect a business combination. Those costs include advisory, legal, accounting, valuation, and other professional or consulting fees. Some other examples of costs to the Company include systems conversions, integration planning consultants, contract terminations, and advertising costs. The Company will account for merger-related costs as expenses in the periods in which the costs are incurred and the services are received, with one exception. The costs to issue debt or equity securities will be recognized in accordance with other applicable accounting guidance. These merger-related costs are included on the Company’s Consolidated Statements of Income classified within the noninterest expense caption. |
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Cash and Cash Equivalents | Cash and Cash Equivalents - For purposes of reporting cash flows, the Company defines cash and cash equivalents as cash, cash due from banks, interest-bearing deposits in other banks, money market investments, other interest-bearing deposits, and federal funds sold. |
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Investment Securities | Investment Securities - Investment securities held by the Company are classified as either available for sale or held to maturity at the time of purchase and reassessed periodically, based on management’s intent. Additionally, the Company also holds equity securities and restricted stock with the Federal Reserve Bank and FHLB, which are not subject to the investment security classifications. Available for Sale - securities classified as available for sale are those debt securities that management intends to hold for an indefinite period of time, including securities used as part of the Company’s asset/liability strategy, and that may be sold in response to changes in interest rates, liquidity needs, or other factors. Securities available for sale are reported at fair value, with unrealized gains or losses, net of deferred taxes, included in accumulated other comprehensive income in stockholders’ equity. Held to Maturity - debt securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity and reported at amortized cost. Transfers of debt securities into the held to maturity category from the available for sale category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in other comprehensive income and in the carrying value of the held to maturity securities. Such amounts are amortized over the remaining life of the security. Equity Investments - Equity investments are accounted for using the equity method of accounting if the investment gives the Company the ability to exercise significant influence, but not control, over an investee. The Company’s share of the earnings or losses is reported by equity method investees and is classified as income from equity investees on our consolidated statements of earnings. Equity investments for which the Company does not have the ability to exercise significant influence are accounted for using the cost method of accounting. Under the cost method, investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions, and additional investments. Equity investments in unconsolidated entities with a readily determinable fair value that are not accounted for under the equity method will be measured at fair value through net income. Restricted Stock, at cost - due to restrictions placed upon the Company’s common stock investments in the Federal Reserve Bank and FHLB, these securities have been classified as restricted equity securities and carried at cost. The FHLB required the Bank to maintain stock in an amount equal to 4.25% of outstanding borrowings and a specific percentage of the member’s total assets at December 31, 2018 and 2017. The Federal Reserve Bank requires the Company to maintain stock with a par value equal to 6% of its outstanding capital. The Company regularly evaluates all securities whose values have declined below amortized cost to assess whether the decline in fair value represents an OTTI. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating OTTI losses, an impairment is other-than-temporary if any of the following conditions exist: the entity intends to sell the security; it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis; or, the entity does not expect to recover the security’s entire amortized cost basis (even if the entity does not intend to sell). If a credit loss exists, but an entity does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, the impairment is other-than-temporary and should be separated into a credit portion to be recognized in earnings and the remaining amount relating to all other factors recognized as other comprehensive loss. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Purchased premiums and discounts are recognized in interest income using the interest method over the terms of the securities. |
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Loans Held for Sale | Loans Held for Sale - The Company records loans held for sale via the fair value option. For further information regarding the fair value method and assumptions, refer to Note 13 “Fair Value Measurements.” In addition, the Company requires a firm purchase commitment from a permanent investor before a loan can be closed, thus limiting interest rate risk. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The change in fair value of loans held for sale is recorded as a component of Discontinued Operations within the Company’s Consolidated Statements of Income. |
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Loans | Loans - The Company originates commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by commercial and residential real estate loans (including acquisition and development loans and residential construction loans) throughout its market area. The ability of the Company’s debtors to honor their contracts on such loans is dependent upon the real estate and general economic conditions in those markets, as well as other factors. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for any charge-offs, the ALL, and any deferred fees and costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Below is a summary of the current loan segments: Construction and Land Development - construction loans generally made to commercial and residential builders for specific construction projects. The successful repayment of these types of loans is generally dependent upon (a) a commitment for permanent financing from the Company or other lender, or (b) from the sale of the constructed property. These loans carry more risk than both types of commercial real estate term loans due to the dynamics of construction projects, changes in interest rates, the long-term financing market, and state and local government regulations. As in commercial real estate term lending, the Company manages risk by using specific underwriting policies and procedures for these types of loans and by avoiding excessive concentrations to any one business or industry. Also, included in this category are loans generally made to residential home builders to support their lot and home construction inventory needs. Repayment relies upon the sale of the underlying residential real estate project. This type of lending carries a higher level of risk as compared to other commercial lending. This class of lending manages risks related to residential real estate market conditions, a functioning primary and secondary market in which to finance the sale of residential properties, and the borrower’s ability to manage inventory and run projects. The Company manages this risk by lending to experienced builders and developers by using specific underwriting policies and procedures for these types of loans and by avoiding excessive concentrations with any particular customer or geographic region. Commercial Real Estate – Owner Occupied - term loans made to support owner occupied real estate properties that rely upon the successful operation of the business occupying the property for repayment. General market conditions and economic activity may affect these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by avoiding concentrations to any one business or industry. Commercial Real Estate – Non-Owner Occupied - term loans typically made to borrowers to support income producing properties that rely upon the successful operation of the property for repayment. General market conditions and economic activity may impact the performance of these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by diversifying the lending to various property types, such as retail, office, office warehouse, and hotel as well as avoiding concentrations to any one business or industry. Residential 1-4 Family - Mortgage - loans generally made to residential borrowers. The Residential 1-4 Family - Mortgage loan portfolio carries risks associated with the creditworthiness of the borrower and changes in loan-to-value ratios. The Company manages these risks through policies and procedures such as limiting loan-to-value ratios at origination, experienced underwriting, requiring standards for appraisers, and not making subprime loans. Residential 1-4 Family - Commercial - loans made to commercial borrowers where the loan is secured by residential property. The Residential 1-4 Family - Commercial loan portfolio carries risks associated with the creditworthiness of the tenant, the ability to re-lease the property when vacancies occur, and changes in loan-to-value ratios. The Company manages these risks through policies and procedures, such as limiting loan-to-value ratios at origination, requiring guarantees, experienced underwriting, and requiring standards for appraisers. Multifamily Real Estate - loans made to real estate investors to support permanent financing for multifamily residential income producing properties that rely on the successful operation of the property for repayment. This management mainly involves property maintenance, re-leasing upon tenant turnover and collection of rents due from tenants. This type of lending carries a lower level of risk, as compared to other commercial lending. In addition, underwriting requirements for multifamily properties are stricter than for other non-owner-occupied property types. The Company manages this risk by avoiding concentrations with any particular customer. Commercial & Industrial - loans generally made to support the Company’s borrowers’ need for short-term or seasonal cash flow and equipment/vehicle purchases. Repayment relies upon the successful operation of the business. This type of lending typically carries a lower level of commercial credit risk, as compared to other commercial lending. The Company manages this risk by using general underwriting policies and procedures for these types of loans and by avoiding concentrations to any one business or industry. HELOC - the consumer HELOC portfolio carries risks associated with the creditworthiness of the borrower and changes in loan-to-value ratios. The Company manages these risks through policies and procedures, such as limiting loan-to-value ratios at origination, using experienced underwriting, requiring standards for appraisers, and not making subprime loans. Auto - the consumer indirect auto lending portfolio generally carries certain risks associated with the values of the collateral that management must mitigate. The Company focuses its indirect auto lending on one to two-year-old used vehicles where substantial depreciation has already occurred thereby minimizing the risk of significant loss of collateral values in the future. This type of lending places reliance on computer-based loan approval systems to supplement other underwriting standards. Consumer and all other - portfolios carry risks associated with the creditworthiness of the borrower and changes in the economic environment. The Company manages these risks through policies and procedures such as experienced underwriting, maximum debt to income ratios, and minimum borrower credit scores. Loans that support small business lines of credit and agricultural lending are included in this category; however, neither are a material source of business for the Company. Also included in this category are loans purchased through various third-party lending programs. These portfolios include consumer loans and carry risks associated with the borrower, changes in the economic environment, and the vendors themselves. The Company manages these risks through policies that require minimum credit scores and other underwriting requirements, robust analysis of actual performance versus expected performance, as well as ensuring compliance with the Company's vendor management program. Nonaccruals, Past Dues, and Charge-offs The policy for placing commercial loans on nonaccrual status is generally when the loan is 90 days delinquent unless the credit is well secured and in process of collection. Consumer loans are typically charged-off when management judges the loan to be uncollectible but generally no later than 120 days past due for non-real estate secured loans and 180 days for real estate secured loans. Consumer loans are generally not placed on nonaccrual status prior to charge off. Commercial loans are typically written down to net realizable value when it is determined that the Company will be unable to collect the principal amount in full and the amount is a confirmed loss. Loans in all classes of portfolios are considered past due or delinquent when a contractual payment has not been satisfied. Loans are placed on nonaccrual status or charged off at an earlier date if collection of principal and interest is considered doubtful and in accordance with regulatory requirements. The process for charge-offs of impaired collateral dependent loans is discussed in detail within the “Allowance for Loan Losses” section of this Note. For both the commercial and consumer loan segments, all interest accrued but not collected for loans placed on nonaccrual status or charged-off is reversed against interest income and accrual of interest income is terminated. Payments and interest on these loans are accounted for using the cost-recovery method by applying all payments received as a reduction to the outstanding principal balance until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The determination of future payments being reasonably assured varies depending on the circumstances present with the loan; however, the timely payment of contractual amounts owed for six consecutive months is a primary indicator. The authority to move loans into or out of accrual status is limited to senior Special Assets Officers. Reclassification of certain loans may require approval of the Special Assets Loan Committee. |
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Impaired Loans | Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral. The impairment loan policy is the same for all segments within the commercial loan segment. For the consumer loan segment, large groups of smaller balance homogeneous loans are collectively evaluated for impairment. This evaluation subjects each of the Company’s homogenous pools to a historical loss factor derived from net charge-offs experienced over the preceding 24 quarters. The Company applies payments received on impaired loans to principal and interest based on the contractual terms until they are placed on nonaccrual status. All payments received are then applied to reduce the principal balance and recognition of interest income is terminated as previously discussed. |
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Allowance for Loan Losses | Allowance for Loan Losses The provision for loan losses charged to operations is an amount sufficient to bring the ALL to an estimated balance that management considers adequate to absorb probable losses inherent in the portfolio. Loans are charged against the allowance when management believes the collectability of the principal is unlikely, while recoveries of amounts previously charged-off are credited to the ALL. Management’s determination of the adequacy of the ALL is based on an evaluation of the composition of the loan portfolio, the value and adequacy of collateral, current economic conditions, historical loan loss experience, and other risk factors. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions, particularly those affecting real estate values. Management believes that the ALL is adequate. The Company performs regular credit reviews of the loan portfolio to review the credit quality and adherence to its underwriting standards. The credit reviews include Annual Loan Servicing performed by Commercial Bankers in accordance with Commercial Loan Policy (CLP), relationship reviews that accompany annual loan renewals, and reviews by its Loan Review Group. Upon origination, each commercial loan is assigned a risk rating ranging from one to nine, with loans closer to one having less risk. This risk rating scale is the Company’s primary credit quality indicator. Consumer loans are not risk rated unless past due status, bankruptcy, or other event results in the assignment of a Substandard or worse risk rating in accordance with CLP. The Company has various committees that review and ensure that the ALL methodology is in accordance with GAAP and loss factors used appropriately reflect the risk characteristics of the loan portfolio. The Company’s ALL consists of specific, general, and qualitative components. Specific Reserve Component The specific reserve component relates to impaired loans. Upon being identified as impaired, for loans not considered to be collateral-dependent, an ALL is established when the discounted cash flows of the impaired loan are lower than the carrying value of that loan. The impairment of collateral-dependent loans is measured based on the fair value of the underlying collateral, less selling costs, compared to the carrying value of the loan. If the Company determines that the value of an impaired collateral dependent loan is less than the recorded investment in the loan, the Company charges off the deficiency if it is determined that such amount represents a confirmed loss. Typically, a loss is confirmed when the Company is moving towards foreclosure (or final disposition). The Company obtains independent appraisals from a pre-approved list of independent, third party appraisers located in the market in which the collateral is located. The Company’s approved appraiser list is continuously maintained to ensure the list only includes such appraisers that have the experience, reputation, character, and knowledge of the respective real estate market. At a minimum, it is ascertained that the appraiser is currently licensed in the state in which the property is located, experienced in the appraisal of properties similar to the property being appraised, has knowledge of current real estate market conditions and financing trends, and is reputable. The Company’s internal REVG, which reports to the Enterprise Risk Management group, performs either a technical or administrative review of all appraisals obtained. A technical review will ensure the overall quality of the appraisal, while an administrative review ensures that all of the required components of an appraisal are present. Independent appraisals or valuations are updated every 12 months for all impaired loans. The Company’s impairment analysis documents the date of the appraisal used in the analysis. Adjustments to appraised values are only permitted to be made by the REVG. The impairment analysis is reviewed and approved by senior Credit Administration officers and the Special Assets Loan Committee. External appraisals are the primary source to value collateral dependent loans; however, the Company may also utilize values obtained through other valuation sources. These alternative sources of value are used only if deemed to be more representative of value based on updated information regarding collateral resolution. Impairment analyses are updated, reviewed, and approved on a quarterly basis at or near the end of each reporting period. General Reserve Component The general reserve component covers non-impaired loans and is quantitatively derived from an estimate of credit losses adjusted for various qualitative factors applicable to both commercial and consumer loan segments. The estimate of credit losses is a function of the net charge-off historical loss experience to the average loan balance of the portfolio averaged during a period that management has determined to be adequately reflective of the losses inherent in the loan portfolio. The Company has implemented a rolling 24-quarter look back period, which is re-evaluated on a periodic basis to ensure the reasonableness of the period being used. The following table shows the types of qualitative factors management considers:
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Acquired Loans | Acquired Loans – Acquired loans are recorded at their fair value at acquisition date without carryover of the acquiree’s previously established ALL, as credit discounts are included in the determination of fair value. The fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected on the loans and then applying a market-based discount rate to those cash flows. During evaluation upon acquisition, acquired loans are also classified as either acquired impaired (or PCI) or acquired performing. Acquired performing loans are accounted for under ASC 310-20, Receivables – Nonrefundable Fees and Other Costs. The difference between the fair value and unpaid principal balance of the loan at acquisition date (premium or discount) is amortized or accreted into interest income over the life of the loans. If the acquired performing loan has revolving privileges, it is accounted for using the straight-line method; otherwise, the effective interest method is used. Acquired impaired loans reflect credit quality deterioration since origination, as it is probable at acquisition that the Company will not be able to collect all contractually required payments. These PCI loans are accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality. The PCI loans are segregated into pools based on loan type and credit risk. Loan type is determined based on collateral type, purpose, and lien position. Credit risk characteristics include risk rating groups, nonaccrual status, and past due status. For valuation purposes, these pools are further disaggregated by maturity, pricing characteristics, and re-payment structure. PCI loans are written down at acquisition to fair value using an estimate of cash flows deemed to be collectible. Accordingly, such loans are no longer classified as nonaccrual even though they may be contractually past due because the Company expects to fully collect the new carrying values of such loans, which is the new cost basis arising from purchase accounting. Quarterly, management performs a recast of PCI loans based on updated future expected cash flows, which are updated through reassessment of default rates, loss severity, and prepayment speed assumptions. The excess of the cash flows expected to be collected over a pool’s carrying value is considered to be the accretable yield and is recognized as interest income over the estimated life of the loan or pool using the effective yield method. The accretable yield may change due to changes in the timing and amounts of expected cash flows; these changes are disclosed in Note 4 “Loans and Allowance for Loan Losses.” The excess of the undiscounted contractual balances due over the cash flows expected to be collected is considered to be the nonaccretable difference, which represents the estimate of credit losses expected to occur and was considered in determining the fair value of loan at the acquisition date. Any subsequent increases in expected cash flows over those expected at the acquisition date in excess of fair value are adjusted through an increase in the accretable yield on a prospective basis; any decreases in expected cash flows attributable to credit deterioration are recognized by recording a provision for loan losses. The PCI loans are and will continue to be subject to the Company’s internal and external credit review and monitoring. If further credit deterioration is experienced, such deterioration will be measured and the provision for loan losses will be increased. A loan will be removed from a pool (at its carrying value) only if the loan is sold, foreclosed, or assets are received in full satisfaction of the loan. |
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Troubled Debt Restructurings | Troubled Debt Restructurings - In situations where, for economic or legal reasons related to a borrower’s financial condition, the Company grants a concession in the loan structure to the borrower that it would not otherwise consider, the related loan is classified as a TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms as early as possible. These modified terms may include rate reductions, principal or interest forgiveness, extension of terms that are considered to be below market, conversion to interest only, and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. Restructured loans for which there was no rate concession, and therefore made at a market rate of interest, may subsequently be eligible to be removed from reportable TDR status in periods subsequent to the restructuring depending on the performance of the loan. The Company reviews previously restructured loans quarterly in order to determine whether any have performed, subsequent to the restructure, at a level that would allow for them to be removed from reportable TDR status. The Company generally would consider a change in this classification if the borrower is no longer experiencing financial difficulty, the loan is current or less than 30 days past due at the time the status change is being considered, the loan has performed under the restructured terms for a consecutive twelve-month period, and is no longer considered to be impaired. A loan may also be considered for removal from TDR status as a result of a subsequent restructure under certain restrictive circumstances. The removal of TDR designations must be approved by the Company's Special Asset Loan Committee. Loans removed from reportable TDR status continue to be evaluated for impairment. The significant majority of these loans have been subject to new credit decisions due to the improvement in the expected future cash flows, the financial condition of the borrower, and other factors considered during the re-underwriting. |
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Premises and Equipment | Premises and Equipment - Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method based on the type of asset involved. The Company’s policy is to capitalize additions and improvements and to depreciate the cost thereof over their estimated useful lives ranging from 3 to 50 years. Leasehold improvements are amortized over the shorter of the life of the related lease or the estimated life of the related asset. Maintenance and repairs are expensed as they are incurred. |
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Goodwill and Intangible Assets | Goodwill and Intangible Assets - The Company has an aggregate goodwill balance of $727.2 million associated with previous merger transactions, which is associated with the commercial banking segment. Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009 is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Company has selected April 30th as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives, which range from 4 to 14 years, to their estimated residual values. Goodwill is the only intangible asset with an indefinite life included on the Company’s Consolidated Balance Sheets. Long-lived assets, including purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented on the Company's Consolidated Balance Sheets and reported at the lower of the carrying amount or fair value less costs to sell, would no longer depreciated. Management concluded that no circumstances indicating an impairment of these assets existed as of the balance sheet date. The Company performed its annual impairment testing on April 30, 2018 and determined that there was no impairment to its goodwill. Management performed a review through December 31, 2018 and concluded that no impairment existed as of the balance sheet date. The Company wrote off the portion of goodwill related to the mortgage company during 2018 because of the wind down of its operations throughout the year. |
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Foreclosed Properties | Foreclosed Properties - Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis. When the carrying amount exceeds the acquisition date fair value less selling costs, the excess is charged off against the ALL. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell, any valuation adjustments occurring from post-acquisition reviews are charged to expense as incurred. Revenue and expenses from operations and changes in the valuation allowance are included in OREO and credit-related expenses, disclosed in a separate line item on the Company’s Consolidated Statements of Income. |
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Transfers of Financial Assets | Transfers of Financial Assets - Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
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Bank Owned Life Insurance | Bank Owned Life Insurance - The Company has purchased life insurance on certain key employees and directors. These policies are recorded at their cash surrender value and are included in a separate line item on the Company’s Consolidated Balance Sheets. Income generated from policies is recorded as noninterest income. |
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Derivatives | Derivatives - Derivatives are recognized as assets and liabilities on the Company’s Consolidated Balance Sheets and measured at fair value. The Company’s derivatives are interest rate swap agreements and interest rate lock commitments. The Company’s hedging policies permit the use of various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. All derivatives are recorded at fair value on the Consolidated Balance Sheets. The Company may be required to recognize certain contracts and commitments as derivatives when the characteristics of those contracts and commitments meet the definition of a derivative. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. The Company considers a hedge to be highly effective if the change in fair value of the derivative hedging instrument is within 80% to 125% of the opposite change in the fair value of the hedged item attributable to the hedged risk. If derivative instruments are designated as hedges of fair values, and such hedges are highly effective, both the change in the fair value of the hedge and the hedged item are included in current earnings. Fair value adjustments related to cash flow hedges are recorded in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of hedges are reflected in earnings as they occur. Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the interest income or interest expense associated with the hedged item. During the life of the hedge, the Company formally assesses whether derivatives designated as hedging instruments continue to be highly effective in offsetting changes in the fair value or cash flows of hedged items. If it is determined that a hedge has ceased to be highly effective, the Company will discontinue hedge accounting prospectively. At such time, previous adjustments to the carrying value of the hedged item are reversed into current earnings and the derivative instrument is reclassified to a trading position recorded at fair value. The Company enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. The period of time between issuance of a loan commitment, closing, and sale of the loan generally ranges from 30 to 120 days. The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Company is not exposed to material losses and will not realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is high due to their similarity. The market value of rate lock commitments and best efforts contracts is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset while taking into consideration the probability that the rate lock commitments will close. The fair value of the rate lock commitments is reported as a component of "Assets of discontinued operations" in the Company’s Consolidated Balance Sheets; the fair value of the Company’s best efforts forward delivery commitments is recorded as a component of "Liabilities of discontinued operations" of the Company’s Consolidated Balance Sheets. Any impact to income is recorded in current period earnings as a component of "Income (loss) on discontinued operations" on the Company’s Consolidated Statements of Income. |
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Affordable Housing Entities | Affordable Housing Entities - The Company invests in private investment funds that make equity investments in multifamily affordable housing properties that provide affordable housing tax credits for these investments. The activities of these entities are financed with a combination of invested equity capital and debt. |
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Loan Fees | Loan Fees - Fees collected and certain costs incurred related to loan originations are deferred and amortized as an adjustment to interest income over the life of the related loans. Deferred fees and costs are recorded as an adjustment to loans outstanding using a method that approximates a constant yield. |
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Stock Compensation Plan | Stock Compensation Plan - The Company issues equity awards to employees and directors through either stock options, RSUs or PSUs. The Company complies with ASC 718, Compensation - Stock Compensation, which requires the costs resulting from all stock-based payments to employees be recognized in the financial statements. The fair value of stock options’ compensation cost is estimated at the date of grant, using the Black-Scholes option valuation model for determining fair value of stock options. No options were granted in 2018 or 2017. The market price of the Company’s common stock at the date of grant is used for nonvested stock awards. The fair value of PSUs granted in 2018 and 2017 is determined and fixed on the grant date based on the Company’s stock price, adjusted for the exclusion of dividend equivalents. The Monte Carlo simulation valuation model was used to determine the grant date fair value of PSUs granted in 2018 and 2017. The fair value of restricted stock is based on the trading price of the Company's stock on the date of the grant. ASC 718 requires the Company to estimate forfeitures when recognizing compensation expense and that this estimate of forfeitures be adjusted over the requisite service period or vesting schedule based on the extent to which actual forfeitures differ from such estimates. Changes in estimated forfeitures are recognized through a cumulative catch-up adjustment, which is recognized in the period of change, and also will affect the amount of estimated unamortized compensation expense to be recognized in future periods. For more information and tables refer to Note 15 “Employee Benefits and Stock Based Compensation.” |
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Income Taxes | Income Taxes - Deferred income tax assets and liabilities are determined using the asset and liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. Deferred taxes are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits on the Company's Consolidated Balance Sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes on the Company’s Consolidated Statements of Income. The Company did not record any material interest or penalties for the periods ending December 31, 2018, 2017, or 2016 related to tax positions taken. As of December 31, 2018 and 2017, there were no accruals for uncertain tax positions. The Company and its wholly-owned subsidiaries file a consolidated income tax return. Each entity provides for income taxes based on its contribution to income or loss of the consolidated group. On December 22, 2017, the Tax Act was signed into law. |
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Advertising Costs | Advertising Costs - The Company follows a policy of charging the cost of advertising to expense as incurred. Advertising costs are disclosed in a separate line item on the Company’s Consolidated Statements of Income. |
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Earnings Per Common Share | Earnings Per Common Share – Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding during the year. Diluted earnings per common share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and restricted stock and are determined using the treasury stock method. |
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Comprehensive Income | Comprehensive Income - Comprehensive income represents all changes in equity that result from recognized transactions and other economic events of the period. Other comprehensive income (loss) refers to revenues, expenses, gains, and losses under GAAP that are included in comprehensive income but excluded from net income, such as unrealized gains and losses on certain investments in debt and equity securities and interest rate swaps. |
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Off Balance Sheet Credit Related Financial Instruments | Off Balance Sheet Credit Related Financial Instruments - In the ordinary course of business, the Company has entered into commitments to extend credit and standby letters of credit. Such financial instruments are recorded when they are funded. For more information and tables refer Note 9 “Commitments and Contingencies.” |
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Fair Value | Fair Value - The Company follows ASC 820, Fair Value Measurements and Disclosures, to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. This codification clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants. ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy under ASC 820 based on these two types of inputs are as follows: Level 1 valuation is based on quoted prices in active markets for identical assets and liabilities; Level 2 valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the markets; and Level 3 valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. These unobservable inputs reflect the Company’s assumptions about what market participants would use and information that is reasonably available under the circumstances without undue cost and effort. For more specific information on the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value in the financial statements refer to Note 13 “Fair Value Measurements.” |
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Concentrations of Credit Risk | Concentrations of Credit Risk - Most of the Company’s activities are with customers located in portions of Central, Southwest, and Tidewater Virginia. Securities available for sale, loans, and financial instruments with off balance sheet risk also represent concentrations of credit risk and are discussed in Note 3 “Securities,” Note 4 “Loans and Allowance for Loan Losses,” and Note 11 “Stockholders' Equity,” respectively. |
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Reclassifications | Reclassifications – The accompanying consolidated financial statements and notes reflect certain reclassifications in prior periods to conform to the current presentation. Specifically, the Company historically classified former bank premises as OREO; however, the Company concluded former bank premises do not meet the definition of a non-performing asset and should not be included within the Company's non-performing asset disclosures. In addition, OREO has been reclassified to Other Assets within the Consolidated Balance Sheets for all periods presented. |
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Adoption of New Accounting Standards and Recent Accounting Pronouncements | Adoption of New Accounting Standards - On January 1, 2018, the Company adopted ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606” and all subsequent amendments to the ASU (“Topic 606”). This ASU revised guidance for the recognition, measurement, and disclosure of revenue from contracts with customers. The guidance, as amended, is applicable to all entities and replaces a significant portion of existing industry and transaction-specific revenue recognition rules with a more principles-based recognition model. Most revenue associated with financial instruments, including interest income, loan origination fees, and credit card fees, is outside the scope of the guidance. Gains and losses on investment securities, derivatives, and sales of financial instruments are similarly excluded from the scope. The Company adopted this ASU using the modified retrospective approach, which requires a cumulative effect adjustment to retained earnings as of the beginning of the reporting period in which the entity first applies the new guidance. The adoption of Topic 606 did not have a material impact on the Company’s consolidated financial results but did result in expanded disclosures related to noninterest income and enhanced qualitative disclosures on the revenues within the scope of the new guidance. Refer to Note 14 “Revenue" for further discussion on the Company's accounting policies for revenue sources within the scope of Topic 606. On January 1, 2018, the Company adopted ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU requires an entity to, among other things: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in OCI the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The ASU provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The ASU also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. The adoption of ASU No. 2016-01 did not have a material impact on the Company’s consolidated financial statements and resulted in enhancements to the financial instrument disclosures. On May 1, 2018, the Company early adopted ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” This ASU simplifies the application of the hedge accounting guidance and improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The targeted improvements in ASU No. 2017-12 allowed the Company a one-time transfer of certain debt securities from HTM to AFS. The Company adopted this ASU using the modified retrospective approach. As part of this adoption, the Company made a one-time election to transfer eligible HTM securities to the AFS category in order to optimize the investment portfolio management for capital and risk management considerations. The Company transferred HTM securities with a carrying amount of $187.4 million, which resulted in a $400,000 increase to AOCI. Refer to Note 3 "Securities" and Note 11 "Stockholders' Equity" for further discussion regarding the adoption. On May 1, 2018, the Company early adopted ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU allows for a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Act and requires certain disclosures about the stranded tax effects. The Company reclassified approximately $107,000 from AOCI to retained earnings during the second quarter 2018. Refer to Note 11 "Stockholders' Equity" for further discussion regarding the adoption. The net impact to retained earnings of the adoption of ASU No. 2017-12 and ASU No. 2018-02 was $293,000. Recent Accounting Pronouncements - In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This ASU requires lessees to put most leases on their balance sheets, but recognize expenses in the income statement in a manner similar to today’s accounting. This ASU also eliminates the real estate-specific provisions and changes the guidance on sale-leaseback transactions, initial direct costs, and lease executory costs for all entities. For lessors, this ASU modifies the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company plans to adopt Topic 842 in the first quarter of 2019 via the modified retrospective transition approach; which is required for leases existing at, or entered into after the date of adoption, to be presented in accordance with the new standard requirements. The Company plans to elect the package of practical expedients permitted under the transition guidance within the new standard, which allows the Company to carry forward historical lease classifications. In addition, the Company will elect the short-term lease exemption practical expedient in which leases with an initial term of twelve months or less are not capitalized and are not recorded on the balance sheet. Lastly, the Company plans to elect the practical expedient related to accounting for lease and non-lease components as a single lease component. While the Company has evaluated this ASU and the effect of related disclosures, the Company expects that the primary effect of adoption will be to require recording right-of-use assets and corresponding lease obligations for current operating leases, which is estimated at approximately $51.5 million, as of the adoption of this standard, which is based on the Company’s current outstanding lease population. Upon adoption, the Company will have a new system of record; implement new accounting policies and internal controls related to the implementation of the standard. The Company does not expect the adoption of this standard to materially impact the consolidated net earnings and capital ratios; additionally there will be no impact on cash flows. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This ASU updates the existing guidance to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. This ASU replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The CECL model will replace the Company's current accounting for PCI and impaired loans. This ASU also amends the AFS debt securities OTTI model. This ASU is effective for fiscal years beginning after December 15, 2019. The Company has established a cross-functional governance structure for the implementation of CECL. The Company is continuing to evaluate the impact ASU No. 2016-13 will have on its consolidated financial statements. This ASU contains significant differences from existing GAAP, and the implementation of this ASU may result in increases to the Company's reserves for credit losses of financial instruments; however, the Company is still finalizing its estimate of the quantitative impact of this standard. In August 2018, the FASB issued ASU No. 2018-15, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." This ASU amends the Intangibles—Goodwill and Other Topic of the Accounting Standards Codification to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This ASU is effective for the Company for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company does not expect this ASU to have a material effect on its financial statements. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Qualitative Factors | The following table shows the types of qualitative factors management considers:
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ACQUISITIONS & DISPOSITIONS (Tables) |
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table provides an assessment of the consideration transferred, assets acquired, and liabilities assumed as of the date of the acquisition (dollars in thousands):
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Outstanding Principal Balance And Carrying Amount of Acquired Impaired Loans | The following table presents the acquired impaired loans receivable at the acquisition date (dollars in thousands):
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Business Acquisition, Pro Forma Information | The Company expects to achieve further operating cost savings and other business synergies, including branch closures, as a result of the acquisition which are not reflected in the pro forma amounts below (dollars in thousands):
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Schedule of Effect of Amortization and Accretion Related to Acquisition | The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments had the following impact on the Consolidated Statements of Income during the years ended December 31, 2018, 2017, and 2016 (dollars in thousands):
(1) Loan acquisition-related fair value adjustments accretion is included in "Interest and fees on loans" in the "Interest and dividend income" section of the Company's Consolidated Statements of Income. (2) Building and lease acquisition-related fair value adjustments amortization is included in "Occupancy expenses" in the "Noninterest expense" section of the Company's Consolidated Statements of Income. (3) Core deposit and other intangible premium amortization is included in "Amortization of intangible assets" in the "Noninterest expense" section of the Company's Consolidated Statements of Income. (4) Borrowings acquisition-related fair value adjustments (amortization) accretion is included in "Interest on long-term borrowings" in the "Interest Expense" section of the Company's Consolidated Statements of Income. (5) Certificate of deposit acquisition-related fair value adjustments accretion is included in "Interest on deposits" in the "Interest expense" section of the Company's Consolidated Statements of Income. |
SECURITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Realized Gain and Losses on the Sale of Securities | The following table presents the gross realized gains and losses on and the proceeds from the sale of securities during the years ended December 31, 2018, 2017, and 2016 (dollars in thousands).
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Available-for-sale Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Investment Securities | The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of December 31, 2018 and 2017 are summarized as follows (dollars in thousands):
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Schedule of Gross Unrealized Losses and Fair Value of Investments | The following table shows the gross unrealized losses and fair value (dollars in thousands) of the Company’s available for sale securities with unrealized losses that are not deemed to be other-than-temporarily impaired as of December 31, 2018 and 2017. These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.
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Schedule of Amortized Cost and Estimated Fair Value of Securities | The following table presents the amortized cost and estimated fair value of AFS securities as of December 31, 2018 and 2017, by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Held-to-maturity Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortized Cost and Estimated Fair Value of Securities | The following table presents the amortized cost and estimated fair value of HTM securities as of December 31, 2018 and 2017, by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
(1) The carrying value includes $119,000 and $3.6 million of net unrealized gains present at the time of transfer from available for sale securities, net of any accretion, as of December 31, 2018 and 2017, respectively. |
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Schedule of Carrying Values, Gross Unrealized Gains and Losses and Estimated Fair Value of Securities | The carrying value, gross unrealized gains and losses, and estimated fair values of securities held to maturity as of December 31, 2018 and 2017 are summarized as follows (dollars in thousands):
(1) The carrying value includes $119,000 and $3.6 million of net unrealized gains present at the time of transfer from available for sale securities, net of any accretion, as of December 31, 2018 and 2017, respectively. |
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Gross Unrealized Losses and Fair Value of Securities | The following table shows the gross unrealized losses and fair value (dollars in thousands) of the Company’s held to maturity securities with unrealized losses that are not deemed to be other-than-temporarily impaired as of December 31, 2018 and 2017. These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.
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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Stated at Face Amount, Net of Unearned Income | Loans are stated at their face amount, net of deferred fees and costs, and consist of the following at December 31, 2018 and 2017 (dollars in thousands):
(1) Loans, as presented, are net of deferred fees and costs totaling $5.1 million and $1.3 million as of December 31, 2018 and 2017, respectively. |
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Summary of Aging of the Loan Portfolio by Class | The following table shows the aging of the Company’s loan portfolio, by segment, at December 31, 2018 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The following table shows the aging of the Company’s loan portfolio, by segment, at December 31, 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. |
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Impaired Loans by Class | The following table shows the Company’s impaired loans, excluding PCI loans, by segment at December 31, 2018 and 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The following table shows the average recorded investment and interest income recognized for the Company’s impaired loans, excluding PCI loans, by segment for the years ended December 31, 2018, 2017 and 2016 (dollars in thousands):
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Summary of Modified Loans that Continue to Accrue Interest Under the Terms of Restructuring Agreement | The following table provides a summary, by segment, of TDRs that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and TDRs that have been placed in nonaccrual status, which are considered to be nonperforming, as of December 31, 2018 and 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. |
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Schedule of TDR by Class and Modification Type | The following table shows, by segment and modification type, TDRs that occurred during the years ended December 31, 2018 and 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. |
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Allowance for Loan Loss Activity, by Portfolio Segment, Balances for Allowance for Credit Losses, and Loans Based on Impairment Methodology | The following tables show the allowance for loan loss activity by segment for the year ended December 31, 2018, 2017, and 2016. The tables below include the provision for loan losses. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes.
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes.
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The following tables show the loan and allowance for loan loss balances based on impairment methodology by segment as of December 31, 2018 and 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes.
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. |
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Loans Receivables Related Risk Rating | The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of December 31, 2018 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of December 31, 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. |
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Schedule of Acquired Loan Portfolio and Accretable Yield | The following shows changes in the accretable yield for loans accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality, for the periods presented (dollars in thousands):
(1) This line item represents changes in the cash flows expected to be collected due to the impact of non-credit changes such as prepayment assumptions, changes in interest rates on variable rate PCI loans, and discounted payoffs that occurred in the year. |
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Purchased Impaired | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Aging of the Loan Portfolio by Class | The following table shows the PCI loan portfolios, by segment and their delinquency status, at December 31, 2018 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The following table shows the PCI loan portfolios, by segment and their delinquency status, at December 31, 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. |
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Loans Receivables Related Risk Rating | The following table shows the recorded investment in only PCI loans by segment with their related risk level as of December 31, 2018 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. The following table shows the recorded investment in only PCI loans by segment with their related risk level as of December 31, 2017 (dollars in thousands):
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes. |
PREMISES AND EQUIPMENT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Bank Premises and Equipment | The Company’s premises and equipment as of December 31, 2018 and 2017 are as follows (dollars in thousands):
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Schedule of Future Minimum Rental Payments Required | Future minimum rental payments required under non-cancelable operating leases for premises that have initial or remaining terms in excess of one year as of December 31, 2018 are as follows for the years ending (dollars in thousands):
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INTANGIBLE ASSETS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information Concerning Intangible Assets with Finite Life | Information concerning intangible assets with a finite life is presented in the following table (dollars in thousands):
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Estimated Remaining Amortization Expense of Intangibles | As of December 31, 2018, the estimated remaining amortization expense of intangibles for the years ended is as follows (dollars in thousands):
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DEPOSITS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits, Interest-bearing and Noninterest-bearing, Alternative [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deposits by Type | The major types of interest-bearing deposits are as follows for the years ended December 31, (dollars in thousands):
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Scheduled Maturities of Time Deposits | As of December 31, 2018, the scheduled maturities of time deposits are as follows for the years ended December 31, (dollars in thousands):
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BORROWINGS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Borrowings | Total short-term borrowings consist of the following as of December 31, 2018 and 2017 (dollars in thousands):
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Trust Preferred Capital Notes Qualify for Tier 1 Capital | The Company's trust preferred capital notes consist of the following as of December 31, 2018:
(1) The total of the trust preferred capital securities and investments in the respective trusts represents the principal asset of the Company's junior subordinated debt securities with like maturities and like interest rates to the capital securities. The Company's investment in the trusts is reported in "Other Assets" on the Consolidated Balance Sheets. (2) Rate as of December 31, 2018. |
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Advances from the FHLB | As of December 31, 2018, the Company had long-term advances from the FHLB consisting of the following (dollars in thousands):
(1) Interest rates calculated using non-rounded numbers. As of December 31, 2017, the Company had long-term advances from the FHLB consisting of the following (dollars in thousands):
(1) Interest rates calculated using non-rounded numbers. |
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Contractual Maturities of Long-Term Debt | As of December 31, 2018, the contractual maturities of long-term debt are as follows for the years ending (dollars in thousands):
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COMMITMENTS AND CONTINGENCIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances of Commitments and Contingencies | The following table presents the balances of commitments and contingencies as of December 31, (dollars in thousands):
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Schedule of Pledged Assets, Not Separately Reported on Statement of Financial Position | As part of the Company's liquidity management strategy, it pledges collateral to secure various financing and other activities that occur during the normal course of business. The following tables present the types of collateral pledged, at December 31, 2018 and 2017 (dollars in thousands):
(1) Balance represents market value. (2) Balance represents book value.
(1) Balance represents market value. (2) Balance represents book value. |
DERIVATIVES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Derivative Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Derivatives | The following table summarizes key elements of the Company’s derivative instruments as of December 31, 2018 and 2017, segregated by derivatives that are considered accounting hedges and those that are not (dollars in thousands):
(1) Notional amounts are not recorded on the Company's Consolidated Balance Sheet and are generally used only as a basis on which interest and other payments are determined. (2) Balances represent fair value of derivative financial instruments. |
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Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table summarizes the carrying value of the Company’s hedged assets in fair value hedges and the associated cumulative basis adjustments included in those carrying values as of December 31, 2018 (dollars in thousands):
(1) These amounts include the amortized cost basis of the investment securities designated in hedging relationships for which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2018, the amortized cost basis of this portfolio was $224 million, the amount of the designated hedged item was $50 million, and the cumulative basis adjustment associated with this hedge was $1.4 million. (2) Carrying value represents amortized cost. |
STOCKHOLDERS' EQUITY (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Accumulated Other Comprehensive Income | The change in accumulated other comprehensive income (loss) for the year ended December 31, 2018 is summarized as follows, net of tax (dollars in thousands):
(1) During the second quarter of 2018, the Company adopted ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities". As part of this adoption, the Company made a one-time election to transfer eligible HTM securities to the AFS category. The transfer of these securities resulted in an increase of approximately $400,000 to AOCI and is included as unrealized gains (losses) on AFS securities above. (2) During the second quarter of 2018, the Company adopted ASU No. 2018-02 "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." As part of this adoption, the Company reclassified approximately $107,000 of these amounts from AOCI to retained earnings. (3) During the first quarter of 2018, the Company adopted ASU No. 2016-01 "Financial Instruments - Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities." As part of this adoption, the Company reclassified approximately $61,000 of these amounts from AOCI to retained earnings. The change in accumulated other comprehensive income (loss) for the year ended December 31, 2017 is summarized as follows, net of tax (dollars in thousands):
The change in accumulated other comprehensive income (loss) for the year ended December 31, 2016 is summarized as follows, net of tax (dollars in thousands):
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REGULATORY MATTERS AND CAPITAL (Tables) |
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Bank Capital Amount and Ratio | The Company and the Bank’s capital amounts and ratios are also presented in the following table at December 31, 2018 and 2017 (dollars in thousands):
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FAIR VALUE MEASUREMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis at December 31, 2018 and 2017 (dollars in thousands):
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Schedule of Financial Assets Measured at Fair Value on Nonrecurring Basis | The following tables summarize the Company’s financial assets that were measured at fair value on a nonrecurring basis at December 31, 2018 and 2017 (dollars in thousands):
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Carrying Values and Estimated Fair Values of the Company's Financial Instruments | The carrying values and estimated fair values of the Company’s financial instruments as of December 31, 2018 and 2017 are as follows (dollars in thousands):
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REVENUE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | Noninterest income disaggregated by major source, for the years ended December 31, 2018, 2017, and 2016, consisted of the following (dollars in thousands):
(1) Income within scope of Topic 606. (2) Includes income within the scope of Topic 606 of $4.4 million, $2.3 million, and $2.3 million for the years ended December 31, 2018, 2017, and 2016, respectively. The remaining balance is outside the scope of Topic 606. (3) Noninterest income for the discontinued mortgage segment is reported in Note 18, "Segment Reporting & Discontinued Operations." |
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits and Share-based Compensation, Noncash [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment Made for Employee Benefit Plans | The following 401(k) Plan match and other discretionary contributions were made to the Company’s employees, in accordance with the plans described above, in 2018, 2017, and 2016 (dollars in thousands):
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Schedule of Recognized Stock-Based Compensation Expense | For the years ended December 31, 2018, 2017, and 2016, the Company recognized stock-based compensation expense (included in salaries and benefits expense) (dollars in thousands, except per share data) as follows:
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Summary of Stock Option Activity | The following table summarizes the stock option activity during the year ended December 31, 2018:
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Summary of Nonvested Stock Activity | The following table summarizes the restricted stock activity for the year ended December 31, 2018:
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Summary of Performance Stock Activity | PSUs are granted to certain employees at no cost to the recipient and are subject to vesting based on achieving certain performance metrics; the grant of PSUs is subject to approval by the Company’s Compensation Committee at its sole discretion. PSUs may be paid in cash or shares of common stock or a combination thereof. Holders of PSUs have no right to vote the shares represented by the units. In 2018, the PSUs awarded were market based awards with the number of PSUs ultimately earned based on the Company’s total shareholder return as measured over the performance period.
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Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The fair value of each PSU granted is estimated on the date of grant using the Monte Carlo simulation lattice model that uses the assumptions noted in the following table:
(1) Calculated as the ratio of the current dividend paid per the stock price on the date of grant. (2) Represents the remaining performance period as of the grant date (3) Based on the historical volatility for the period commensurate with the expected life of the PSUs. (4) Based upon the zero-coupon U.S. Treasury rate commensurate with the expected life of the PSUs on the grant date. (5) Assumptions disclosed represent those used in the primary annual issuance. |
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Estimated Unamortized Compensation Expense Recognized in Future | The estimated unamortized compensation expense, net of estimated forfeitures, related to restricted stock and performance stock issued and outstanding as of December 31, 2018 that will be recognized in future periods is as follows (dollars in thousands):
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets and liabilities consist of the following components as of December 31, 2018 and 2017 (dollars in thousands):
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Provision for Income Taxes Charged to Operations | The provision for income taxes charged to continuing operations for the years ended December 31, 2018, 2017, and 2016 consists of the following (dollars in thousands):
(1) The deferred tax expense for the year ended December 31, 2017 includes the impact of the Tax Act. |
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Schedule of Income Tax Expense, Difference in Income Tax Rate to Pretax Income | The income tax expense differs from the amount of income tax determined by applying the U.S. federal income tax rate to pre-tax income for the years ended December 31, 2018, 2017, and 2016, due to the following (dollars in thousands):
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EARNINGS PER SHARE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the Denominators of the Basic and Diluted EPS Computations | The following table presents earnings per share from continuing operations, discontinued operations and total net income available to common shareholders for the years ended December 31, (in thousands except per share data):
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SEGMENT REPORTING & DISCONTINUED OPERATIONS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information About Reportable Segments and Reconciliation | The following table presents summarized operating results of the discontinued mortgage segment at December 31, 2018, 2017 and 2016, respectively (dollars in thousands):
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PARENT COMPANY FINANCIAL INFORMATION (Tables) - Parent Company |
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Financial Information for the Parent Company - Balance Sheets | Financial information for the Parent Company is as follows: PARENT COMPANY CONDENSED BALANCE SHEETS AS OF DECEMBER 31, 2018 and 2017 (Dollars in thousands)
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Financial Information for the Parent Company - Statements of Income and Comprehensive Income | PARENT COMPANY CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2018, 2017, and 2016 (Dollars in thousands)
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Financial Information for the Parent Company - Statements of Cash Flows | PARENT COMPANY CONDENSED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2018, 2017, and 2016 (Dollars in thousands)
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Apr. 30, 2018
USD ($)
|
Dec. 31, 2005
acquisition
|
Jun. 30, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
ATM
branch
shares
|
Dec. 31, 2017
USD ($)
shares
|
May 01, 2018
USD ($)
|
|
Accounting Policies [Line Items] | ||||||
Number of bank branches | branch | 140 | |||||
Number of ATM's | ATM | 188 | |||||
Number of business acquisitions | acquisition | 2 | |||||
Federal Home Loan Bank requires Bank to maintain percentage of stock equal to outstanding borrowings | 4.25% | 4.25% | ||||
Percentage of Federal Reserve Bank of Richmond reserve | 6.00% | 6.00% | ||||
Number of days past due to charge off real estate secured loans | 180 days | |||||
Future payments, contractual term | 6 months | |||||
Goodwill | $ 727,168,000 | $ 298,528,000 | ||||
Impairment charges for goodwill or intangible assets | $ 0 | 0 | ||||
Liabilities for post retirement benefits payable to other beneficiaries | 10,500,000 | 6,300,000 | ||||
Affordable housing projects, recognized amortization | 922,000 | 1,300,000 | ||||
Affordable housing projects, tax credits | 1,100,000 | 858,000 | ||||
Affordable housing projects, investment amount | 10,800,000 | 11,000,000 | ||||
Affordable housing projects, liability | $ 9,900,000 | $ 7,300,000 | ||||
Stock options granted | shares | 0 | 0 | ||||
Accruals for uncertain tax positions | $ 0 | $ 0 | ||||
Accumulated other comprehensive income (loss) | (10,273,000) | (884,000) | ||||
Retained earnings | $ 467,345,000 | $ 379,468,000 | ||||
Minimum | ||||||
Accounting Policies [Line Items] | ||||||
Commercial loans on nonaccrual status, period | 90 days | |||||
Period of independent appraisal or valuation | 12 months | |||||
Period past due to change TDR status | 30 days | |||||
Estimated useful life of bank premises | 3 years | |||||
Percentage of fair value of the derivative instruments for the hedge to be highly effective | 80.00% | |||||
Interest rate lock commitments period | 30 days | |||||
Tax position benefit recognition threshold | 50.00% | |||||
Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Period past due to charge off consumer loans non-real estate secured | 120 days | |||||
Estimated useful life of bank premises | 50 years | |||||
Percentage of fair value of the derivative instruments for the hedge to be highly effective | 125.00% | |||||
Interest rate lock commitments period | 120 days | |||||
Xenith | ||||||
Accounting Policies [Line Items] | ||||||
Number of branches | branch | 7 | |||||
Accounting Standards Update 2017-12 | ||||||
Accounting Policies [Line Items] | ||||||
Available for sale debt securities, transfer, amount | $ 187,400,000 | $ 187,400,000 | ||||
Cumulative effects from adoption of new accounting standards | $ 400,000 | |||||
Accounting Standards Update 2018-02 | ||||||
Accounting Policies [Line Items] | ||||||
Accumulated other comprehensive income (loss) | $ (107,000) | |||||
Accounting Standards Update 2017-12 & 2018-02 | ||||||
Accounting Policies [Line Items] | ||||||
Retained earnings | 293,000 | |||||
Accounting Standards Update 2016-02 | ||||||
Accounting Policies [Line Items] | ||||||
Operating lease, right-of-use asset | 51,500,000 | |||||
Operating lease, liability | 51,500,000 | |||||
Interest Rate Lock Commitments | ||||||
Accounting Policies [Line Items] | ||||||
Derivative, amount | $ 0 |
ACQUISITIONS & DISPOSITIONS (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2018 |
Jun. 29, 2018 |
Apr. 01, 2018 |
Jan. 01, 2018 |
May 31, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||
Business Acquisition [Line Items] | |||||||||||
Cash paid in acquisition | $ 14,304 | $ 231 | $ 4,077 | ||||||||
Merger-related costs | 39,728 | 5,393 | 0 | ||||||||
Goodwill | 727,168 | 298,528 | |||||||||
Issuance of common stock in regard to acquisition | $ 794,809 | [1] | 0 | $ 453 | |||||||
Xenith | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of shares equivalent to each share of acquired entity | 0.9354 | ||||||||||
Company's common shares issued | 21,922,077 | ||||||||||
Consideration transferred, fair value | $ 794,809 | ||||||||||
Cash paid in acquisition | 6,170 | ||||||||||
Intangible assets, amortization period | 10 years | ||||||||||
Merger-related costs | $ 37,800 | $ 5,400 | |||||||||
Fair value of total consideration transferred | 800,979 | ||||||||||
Goodwill | 423,840 | ||||||||||
Acquired amortizable intangible assets | 38,470 | ||||||||||
DHFB | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash paid in acquisition | $ 4,800 | ||||||||||
Assets under management | 600,000 | ||||||||||
Fair value of total consideration transferred | 7,600 | ||||||||||
Goodwill | 3,700 | ||||||||||
Acquired amortizable intangible assets | $ 4,100 | ||||||||||
Outfitter Advisors Ltd. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash paid in acquisition | $ 3,400 | ||||||||||
Assets under management | 400,000 | ||||||||||
Fair value of total consideration transferred | 6,000 | ||||||||||
Goodwill | 2,000 | ||||||||||
Acquired amortizable intangible assets | $ 3,800 | ||||||||||
ODCM | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash paid in acquisition | $ 4,100 | ||||||||||
Assets under management | 300,000 | ||||||||||
Fair value of total consideration transferred | 9,100 | ||||||||||
Goodwill | 4,700 | ||||||||||
Issuance of common stock in regard to acquisition | $ 453 | ||||||||||
Earn out provision | 3 years | ||||||||||
Contingent consideration | $ 816 | ||||||||||
Business combination, finite-lived intangibles | $ 4,500 | ||||||||||
Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets, amortization period | 4 years | ||||||||||
Minimum | DHFB | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets, amortization period | 5 years | ||||||||||
Minimum | Outfitter Advisors Ltd. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets, amortization period | 1 year | ||||||||||
Minimum | ODCM | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets, amortization period | 5 years | ||||||||||
Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets, amortization period | 14 years | ||||||||||
Maximum | DHFB | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets, amortization period | 10 years | ||||||||||
Maximum | Outfitter Advisors Ltd. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets, amortization period | 14 years | ||||||||||
Maximum | ODCM | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Intangible assets, amortization period | 10 years | ||||||||||
Performing Financing Receivable | Xenith | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquired performing loans, fair value | 2,400,000 | ||||||||||
Contractually required principal and interest payments | 2,700,000 | ||||||||||
Contractual cash flows not expected to be collected | 20,600 | ||||||||||
Nonperforming Financing Receivable | Xenith | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Fair value of loans acquired with a deterioration of credit quality | 79,264 | ||||||||||
Contractually required principal and interest payments | $ 114,270 | ||||||||||
Shore Premier | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Divestiture, assets | $ 383,900 | ||||||||||
Divestiture, amount of consideration received | $ 375,000 | ||||||||||
Divestiture, equity | 1,250,000 | ||||||||||
Divestiture, gain on sale, net | $ 15,800 | ||||||||||
Allowance for loan and lease losses, loans sold | $ 206,300 | ||||||||||
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ACQUISITIONS & DISPOSITIONS (Schedule of Business Acquisition and the Amounts of Acquired Identifiable Assets and Liabilities) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Jan. 01, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Business Acquisition [Line Items] | ||||
Cash paid in acquisition | $ 14,304 | $ 231 | $ 4,077 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Goodwill | $ 727,168 | $ 298,528 | ||
Xenith | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred, fair value | $ 794,809 | |||
Cash paid in acquisition | 6,170 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Cash and cash equivalents | 174,218 | |||
AFS securities | 295,782 | |||
Restricted stock, at cost | 27,569 | |||
Net loans | 2,453,856 | |||
Premises and equipment | 46,077 | |||
OREO | 5,250 | |||
Core deposit intangibles | 38,470 | |||
Other assets | 202,984 | |||
Total assets | 3,244,206 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Deposits | 2,549,683 | |||
Short-term borrowings | 235,000 | |||
Long-term borrowings | 55,542 | |||
Other liabilities | 26,842 | |||
Total liabilities | 2,867,067 | |||
Net identifiable assets acquired | 377,139 | |||
Goodwill | 423,840 | |||
Fair value of total consideration transferred | $ 800,979 |
ACQUISITIONS & DISPOSITIONS (Schedule of Acquired Impaired Loans Receivable) (Details) - Nonperforming Financing Receivable - Xenith $ in Thousands |
Jan. 01, 2018
USD ($)
|
---|---|
Business Combination, Separately Recognized Transactions [Line Items] | |
Contractually required principal and interest payments | $ 114,270 |
Nonaccretable difference | (19,800) |
Cash flows expected to be collected | 94,470 |
Accretable difference | (15,206) |
Fair value of loans acquired with a deterioration of credit quality | $ 79,264 |
ACQUISITIONS & DISPOSITIONS (Business Acquisition, Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Business Combinations [Abstract] | |||
Total revenues | $ 530,932 | $ 470,484 | $ 425,794 |
Net income | $ 176,473 | $ 45,036 | $ 138,960 |
Earnings per share (in dollars per share) | $ 2.68 | $ 0.68 | $ 2.23 |
ACQUISITIONS & DISPOSITIONS (Schedule of Effect of Amortization and Accretion Related to Acquisition) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Business Combinations [Abstract] | ||||||||||||||||
Loans | [1] | $ 17,145 | $ 6,784 | $ 5,218 | ||||||||||||
Buildings | [2] | 228 | 0 | 0 | ||||||||||||
Core deposit intangibles | [3] | (11,464) | (5,603) | (6,930) | ||||||||||||
Other amortizable intangibles | [3] | (1,375) | (485) | (280) | ||||||||||||
Borrowings | [4] | (506) | 170 | 458 | ||||||||||||
Time deposits | [5] | 2,553 | 0 | 0 | ||||||||||||
Leases | [2] | 130 | 0 | 0 | ||||||||||||
Net impact to income before taxes | [6] | $ 6,711 | $ 866 | $ (1,534) | ||||||||||||
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SECURITIES (Narrative) (Details) |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
security
|
Dec. 31, 2017
USD ($)
security
|
|
Schedule of Investments [Line Items] | |||
Available for sale securities that had been in a continuous loss position for more than 12 months, amount | $ 385,433,000 | $ 197,640,000 | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss | 10,184,000 | 4,188,000 | |
Held to maturity securities unrealized gains before tax | $ 119,000 | 3,600,000 | |
Held-to-maturity securities in a continuous loss position for longer than 12 months, fair value | $ 1,084,000 | ||
Held-to-maturity securities in a continuous loss position for longer than 12 months, number of securities | security | 0 | 2 | |
Held to maturity securities in a continuous loss position, more than 12 months, accumulated loss | $ 31,000 | ||
Federal Home Loan Bank requires Bank to maintain percentage of stock equal to outstanding borrowings | 4.25% | 4.25% | |
Percentage of Federal Reserve Bank of Richmond reserve | 6.00% | 6.00% | |
Restricted equity securities consist of Federal Reserve Bank stock | $ 52,600,000 | $ 27,600,000 | |
Federal Home Loan Bank Stock | 72,000,000 | $ 47,700,000 | |
Credit-related OTTI | $ 0 | ||
Available-for-sale Securities | |||
Schedule of Investments [Line Items] | |||
Available for sale securities that had been in a continuous loss position | security | 138 | 71 | |
Accounting Standards Update 2017-12 | |||
Schedule of Investments [Line Items] | |||
Available for sale debt securities, transfer, amount | $ 187,400,000 | $ 187,400,000 |
SECURITIES (Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Securities, Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Total securities available for sale, Amortized Cost | $ 1,780,952 | $ 971,339 |
Gross Unrealized Gains | 9,414 | 10,569 |
Gross Unrealized (Losses) | (15,545) | (7,686) |
Available for sale securities, Estimated fair value | 1,774,821 | 974,222 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Total securities available for sale, Amortized Cost | 466,588 | 295,546 |
Gross Unrealized Gains | 3,844 | 6,842 |
Gross Unrealized (Losses) | (1,941) | (564) |
Available for sale securities, Estimated fair value | 468,491 | 301,824 |
Corporate bonds | ||
Debt Securities, Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Total securities available for sale, Amortized Cost | 167,561 | 113,625 |
Gross Unrealized Gains | 1,118 | 1,131 |
Gross Unrealized (Losses) | (983) | (876) |
Available for sale securities, Estimated fair value | 167,696 | 113,880 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Total securities available for sale, Amortized Cost | 1,138,034 | 552,431 |
Gross Unrealized Gains | 4,452 | 2,596 |
Gross Unrealized (Losses) | (12,621) | (6,169) |
Available for sale securities, Estimated fair value | 1,129,865 | 548,858 |
Other securities | ||
Debt Securities, Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Total securities available for sale, Amortized Cost | 8,769 | 9,737 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized (Losses) | 0 | (77) |
Available for sale securities, Estimated fair value | $ 8,769 | $ 9,660 |
SECURITIES (Schedule of Gross Unrealized Losses and Fair Value of Investments) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Schedule of gross unrealized losses and fair value of investments | ||
Less than 12 months, Fair value | $ 475,029 | $ 335,205 |
Less than 12 Months, Unrealized Losses | (5,361) | (3,498) |
More than 12 Months, Fair value | 385,433 | 197,640 |
More than 12 Months, Unrealized Losses | (10,184) | (4,188) |
Fair value, Total | 860,462 | 532,845 |
Unrealized Losses, Total | (15,545) | (7,686) |
Obligations of states and political subdivisions | ||
Schedule of gross unrealized losses and fair value of investments | ||
Less than 12 months, Fair value | 133,513 | 25,790 |
Less than 12 Months, Unrealized Losses | (1,566) | (132) |
More than 12 Months, Fair value | 10,145 | 16,934 |
More than 12 Months, Unrealized Losses | (375) | (432) |
Fair value, Total | 143,658 | 42,724 |
Unrealized Losses, Total | (1,941) | (564) |
Mortgage-backed securities | ||
Schedule of gross unrealized losses and fair value of investments | ||
Less than 12 months, Fair value | 306,038 | 298,439 |
Less than 12 Months, Unrealized Losses | (3,480) | (3,267) |
More than 12 Months, Fair value | 341,400 | 136,298 |
More than 12 Months, Unrealized Losses | (9,141) | (2,902) |
Fair value, Total | 647,438 | 434,737 |
Unrealized Losses, Total | (12,621) | (6,169) |
Corporate bonds and other securities | ||
Schedule of gross unrealized losses and fair value of investments | ||
Less than 12 months, Fair value | 35,478 | 10,976 |
Less than 12 Months, Unrealized Losses | (315) | (99) |
More than 12 Months, Fair value | 33,888 | 44,408 |
More than 12 Months, Unrealized Losses | (668) | (854) |
Fair value, Total | 69,366 | 55,384 |
Unrealized Losses, Total | $ (983) | $ (953) |
SECURITIES (Schedule of Amortized Cost and Estimated Fair Value of Securities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Securities, Available-for-sale [Abstract] | ||
Due in one year or less, Amortized Cost | $ 22,653 | $ 25,179 |
Due in one year or less, Estimated Fair Value | 22,789 | 25,326 |
Due after one year through five years, Amortized Cost | 191,003 | 145,276 |
Due after one year through five years, Estimated Fair Value | 188,999 | 145,980 |
Due after five years through ten years, Amortized Cost | 218,211 | 223,210 |
Due after five years through ten years, Estimated Fair Value | 217,304 | 226,251 |
Due after ten years, Amortized Cost | 1,349,085 | 577,674 |
Due after ten years, Estimated Fair Value | 1,345,729 | 576,665 |
Total securities available for sale, Amortized Cost | 1,780,952 | 971,339 |
Total securities available for sale, Estimated Fair Value | 1,774,821 | 974,222 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Due in one year or less, Carrying Value | 0 | 3,221 |
Due in one year or less, Estimated Fair Value | 0 | 3,230 |
Due after one year through five years, Carrying Value | 3,893 | 44,289 |
Due after one year through five years, Estimated Fair Value | 3,900 | 44,601 |
Due after five years through ten years, Carrying Value | 3,480 | 79,114 |
Due after five years through ten years, Estimated Fair Value | 3,507 | 80,532 |
Due after ten years, Carrying Value | 484,899 | 73,015 |
Due after ten years, Estimated Fair Value | 492,094 | 75,120 |
Held-to-maturity Securities, Total | 492,272 | 199,639 |
Total securities held to maturity, Estimated Fair Value | $ 499,501 | $ 203,483 |
SECURITIES (Schedule of Carrying Value, Gross Unrealized Gains and Losses and Estimated Fair Value of Securities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities, Total | $ 492,272 | $ 199,639 |
Held to maturity securities, fair value | 499,501 | 203,483 |
Obligations of states and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities, Total | 492,272 | 199,639 |
Gross Unrealized Gains | 7,375 | 4,014 |
Gross Unrealized Losses | (146) | (170) |
Held to maturity securities, fair value | $ 499,501 | $ 203,483 |
SECURITIES (Gross Unrealized Losses and Fair Value of Securities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Schedule of Held-to-maturity Securities [Line Items] | ||
More than 12 months, Fair Value | $ 1,084 | |
More than 12 months, Unrealized Losses | (31) | |
Obligations of states and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 43,206 | 18,896 |
Less than 12 months, Unrealized Losses | (146) | (139) |
More than 12 months, Fair Value | 0 | 1,084 |
More than 12 months, Unrealized Losses | 0 | (31) |
Fair Value, Total | 43,206 | 19,980 |
Unrealized Losses, Total | $ (146) | $ (170) |
SECURITIES (Gross Realized Gains and Losses on the Sale of Securities) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Investments, Debt and Equity Securities [Abstract] | |||||
Gross realized gains | $ 4,221 | $ 1,170 | $ 302 | ||
Gross realized losses | (3,838) | (370) | (97) | ||
Gains on securities transactions, net | [1] | 383 | 800 | 205 | |
Proceeds from sales of securities | $ 515,764 | $ 139,046 | $ 69,516 | ||
|
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Stated at Face Amount, Net of Unearned Income) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Loans and Leases Receivable Disclosure [Abstract] | ||
Loans receivable, deferred fees and costs | $ 5,100 | $ 1,300 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment, net of deferred fees | 9,716,207 | 7,141,552 |
Construction and Land Development | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment, net of deferred fees | 1,194,821 | 948,791 |
Commercial Real Estate - Owner Occupied | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment, net of deferred fees | 1,337,345 | 943,933 |
Commercial Real Estate - Non-Owner Occupied | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment, net of deferred fees | 2,467,410 | 1,713,659 |
Multifamily Real Estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment, net of deferred fees | 548,231 | 357,079 |
Commercial and Industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment, net of deferred fees | 1,317,135 | 612,023 |
Residential 1-4 Family - Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment, net of deferred fees | 713,750 | 612,395 |
Residential 1-4 Family - Mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment, net of deferred fees | 600,578 | 485,690 |
Auto | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment, net of deferred fees | 301,943 | 282,474 |
HELOC | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment, net of deferred fees | 613,383 | 537,521 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment, net of deferred fees | 379,694 | 408,667 |
Other Commercial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for investment, net of deferred fees | $ 241,917 | $ 239,320 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nonaccrual loans | $ 26,953 | $ 21,743 | $ 10,000 |
Nonaccrual interest lost | $ 2,300 | 698 | $ 452 |
Period for restructured loan to be considered default | 90 days | ||
Acquired performing loan portfolio | $ 9,716,207 | 7,141,552 | |
Acquired Performing Loan Portfolio | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Acquired performing loan portfolio | 2,000,000 | 892,400 | |
Remaining discount on acquired loans | 30,300 | 13,700 | |
Purchased Impaired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Acquired performing loan portfolio | 90,221 | 39,021 | |
Purchased impaired loans (gross) | $ 113,500 | $ 47,900 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Aging of the Loan Portfolio by Segment) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | $ 8,856 | $ 3,532 | |
Total Loans | 9,716,207 | 7,141,552 | |
Nonaccrual | 26,953 | 21,743 | $ 10,000 |
Current | 9,537,156 | 7,053,016 | |
30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 41,434 | 16,873 | |
60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 11,587 | 7,367 | |
Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 90,221 | 39,021 | |
Current | 71,213 | 35,418 | |
Construction and Land Development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 180 | 1,340 | |
Total Loans | 1,194,821 | 948,791 | |
Nonaccrual | 8,018 | 5,610 | |
Current | 1,177,204 | 936,857 | |
Construction and Land Development | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 759 | 1,248 | |
Construction and Land Development | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 6 | 898 | |
Construction and Land Development | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 8,654 | 2,838 | |
Current | 7,122 | 2,773 | |
Commercial Real Estate - Owner Occupied | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 3,193 | 0 | |
Total Loans | 1,337,345 | 943,933 | |
Nonaccrual | 3,636 | 2,708 | |
Current | 1,294,975 | 925,910 | |
Commercial Real Estate - Owner Occupied | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 8,755 | 444 | |
Commercial Real Estate - Owner Occupied | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,142 | 81 | |
Commercial Real Estate - Owner Occupied | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 25,644 | 14,790 | |
Current | 20,705 | 13,931 | |
Commercial Real Estate - Non-Owner Occupied | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 0 | 194 | |
Total Loans | 2,467,410 | 1,713,659 | |
Nonaccrual | 1,789 | 2,992 | |
Current | 2,447,907 | 1,703,592 | |
Commercial Real Estate - Non-Owner Occupied | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 338 | 187 | |
Commercial Real Estate - Non-Owner Occupied | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 41 | 84 | |
Commercial Real Estate - Non-Owner Occupied | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 17,335 | 6,610 | |
Current | 15,464 | 6,189 | |
Multifamily Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 0 | 0 | |
Total Loans | 548,231 | 357,079 | |
Nonaccrual | 0 | 0 | |
Current | 547,997 | 356,999 | |
Multifamily Real Estate | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Multifamily Real Estate | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 146 | 0 | |
Multifamily Real Estate | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 88 | 80 | |
Current | 88 | 80 | |
Commercial and Industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 132 | 214 | |
Total Loans | 1,317,135 | 612,023 | |
Nonaccrual | 1,524 | 316 | |
Current | 1,309,581 | 609,829 | |
Commercial and Industrial | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,353 | 1,147 | |
Commercial and Industrial | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 389 | 109 | |
Commercial and Industrial | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 2,156 | 408 | |
Current | 1,017 | 408 | |
Residential 1-4 Family - Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 1,409 | 579 | |
Total Loans | 713,750 | 612,395 | |
Nonaccrual | 2,481 | 1,085 | |
Current | 687,957 | 598,935 | |
Residential 1-4 Family - Commercial | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 6,619 | 1,682 | |
Residential 1-4 Family - Commercial | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,577 | 700 | |
Residential 1-4 Family - Commercial | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 13,707 | 9,414 | |
Current | 9,312 | 8,630 | |
Residential 1-4 Family - Mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 2,437 | 546 | |
Total Loans | 600,578 | 485,690 | |
Nonaccrual | 7,276 | 6,269 | |
Current | 556,907 | 468,763 | |
Residential 1-4 Family - Mortgage | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 12,049 | 3,838 | |
Residential 1-4 Family - Mortgage | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 5,143 | 2,541 | |
Residential 1-4 Family - Mortgage | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 16,766 | 3,733 | |
Current | 12,455 | 2,764 | |
Auto | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 195 | 40 | |
Total Loans | 301,943 | 282,474 | |
Nonaccrual | 576 | 413 | |
Current | 297,442 | 278,295 | |
Auto | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,320 | 3,541 | |
Auto | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 403 | 185 | |
Auto | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 7 | 0 | |
Current | 7 | ||
HELOC | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 440 | 217 | |
Total Loans | 613,383 | 537,521 | |
Nonaccrual | 1,518 | 2,075 | |
Current | 600,055 | 531,180 | |
HELOC | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 4,611 | 2,382 | |
HELOC | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,644 | 717 | |
HELOC | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 5,115 | 950 | |
Current | 4,365 | 445 | |
Consumer and all other | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 870 | 402 | |
Total Loans | 621,611 | 647,987 | |
Nonaccrual | 135 | 275 | |
Current | 617,131 | 642,656 | |
Consumer and all other | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,630 | 2,404 | |
Consumer and all other | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,096 | 2,052 | |
Consumer and all other | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 749 | 198 | |
Current | $ 678 | $ 198 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (PCI Loan Portfolios by Segment and Delinquency Status) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 9,537,156 | $ 7,053,016 |
Total Loans | 9,716,207 | 7,141,552 |
Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 71,213 | 35,418 |
Total Loans | 90,221 | 39,021 |
Construction and Land Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,177,204 | 936,857 |
Total Loans | 1,194,821 | 948,791 |
Construction and Land Development | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 7,122 | 2,773 |
Total Loans | 8,654 | 2,838 |
Commercial Real Estate - Owner Occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,294,975 | 925,910 |
Total Loans | 1,337,345 | 943,933 |
Commercial Real Estate - Owner Occupied | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 20,705 | 13,931 |
Total Loans | 25,644 | 14,790 |
Commercial Real Estate - Non-Owner Occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 2,447,907 | 1,703,592 |
Total Loans | 2,467,410 | 1,713,659 |
Commercial Real Estate - Non-Owner Occupied | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 15,464 | 6,189 |
Total Loans | 17,335 | 6,610 |
Multifamily Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 547,997 | 356,999 |
Total Loans | 548,231 | 357,079 |
Multifamily Real Estate | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 88 | 80 |
Total Loans | 88 | 80 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,309,581 | 609,829 |
Total Loans | 1,317,135 | 612,023 |
Commercial and Industrial | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,017 | 408 |
Total Loans | 2,156 | 408 |
Residential 1-4 Family - Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 687,957 | 598,935 |
Total Loans | 713,750 | 612,395 |
Residential 1-4 Family - Commercial | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 9,312 | 8,630 |
Total Loans | 13,707 | 9,414 |
Residential 1-4 Family - Mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 556,907 | 468,763 |
Total Loans | 600,578 | 485,690 |
Residential 1-4 Family - Mortgage | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 12,455 | 2,764 |
Total Loans | 16,766 | 3,733 |
Auto | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 297,442 | 278,295 |
Total Loans | 301,943 | 282,474 |
Auto | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 7 | |
Total Loans | 7 | 0 |
HELOC | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 600,055 | 531,180 |
Total Loans | 613,383 | 537,521 |
HELOC | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 4,365 | 445 |
Total Loans | 5,115 | 950 |
Consumer and all other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 617,131 | 642,656 |
Total Loans | 621,611 | 647,987 |
Consumer and all other | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 678 | 198 |
Total Loans | 749 | 198 |
30 To 89 Days Past Due | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4,264 | 1,644 |
30 To 89 Days Past Due | Construction and Land Development | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 108 | 8 |
30 To 89 Days Past Due | Commercial Real Estate - Owner Occupied | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 658 | 381 |
30 To 89 Days Past Due | Commercial Real Estate - Non-Owner Occupied | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 61 | 188 |
30 To 89 Days Past Due | Multifamily Real Estate | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
30 To 89 Days Past Due | Commercial and Industrial | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 47 | 0 |
30 To 89 Days Past Due | Residential 1-4 Family - Commercial | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 931 | 433 |
30 To 89 Days Past Due | Residential 1-4 Family - Mortgage | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,899 | 343 |
30 To 89 Days Past Due | Auto | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | |
30 To 89 Days Past Due | HELOC | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 498 | 291 |
30 To 89 Days Past Due | Consumer and all other | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 62 | 0 |
Greater Than 90 Days and still Accruing | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 14,744 | 1,959 |
Greater Than 90 Days and still Accruing | Construction and Land Development | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,424 | 57 |
Greater Than 90 Days and still Accruing | Commercial Real Estate - Owner Occupied | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4,281 | 478 |
Greater Than 90 Days and still Accruing | Commercial Real Estate - Non-Owner Occupied | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,810 | 233 |
Greater Than 90 Days and still Accruing | Multifamily Real Estate | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Greater Than 90 Days and still Accruing | Commercial and Industrial | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,092 | 0 |
Greater Than 90 Days and still Accruing | Residential 1-4 Family - Commercial | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3,464 | 351 |
Greater Than 90 Days and still Accruing | Residential 1-4 Family - Mortgage | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2,412 | 626 |
Greater Than 90 Days and still Accruing | Auto | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | |
Greater Than 90 Days and still Accruing | HELOC | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 252 | 214 |
Greater Than 90 Days and still Accruing | Consumer and all other | Purchased Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 9 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Impaired Loans Individually Evaluated for Impairment by Segment) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Recorded Investment | |||
Loans without a specific allowance | $ 42,991 | $ 45,393 | |
Loans with a specific allowance | 16,237 | 8,088 | |
Total impaired loans | 59,228 | 53,481 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 46,890 | 47,320 | |
Loans with a specific allowance | 17,662 | 8,612 | |
Total impaired loans | 64,552 | 55,932 | |
Related Allowance | 2,217 | 503 | |
Average Investment | 63,077 | 54,233 | $ 43,664 |
Interest Income Recognized | 1,702 | 1,693 | 1,475 |
Construction and Land Development | |||
Recorded Investment | |||
Loans without a specific allowance | 10,290 | 16,035 | |
Loans with a specific allowance | 372 | 1,536 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 12,038 | 16,214 | |
Loans with a specific allowance | 491 | 1,573 | |
Related Allowance | 63 | 122 | |
Average Investment | 11,648 | 17,080 | 15,346 |
Interest Income Recognized | 234 | 590 | 681 |
Commercial Real Estate - Owner Occupied | |||
Recorded Investment | |||
Loans without a specific allowance | 8,386 | 5,427 | |
Loans with a specific allowance | 4,304 | 1,161 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 9,067 | 5,527 | |
Loans with a specific allowance | 4,437 | 1,161 | |
Related Allowance | 359 | 94 | |
Average Investment | 13,383 | 6,580 | 6,290 |
Interest Income Recognized | 499 | 306 | 242 |
Commercial Real Estate - Non-Owner Occupied | |||
Recorded Investment | |||
Loans without a specific allowance | 6,578 | 6,017 | |
Loans with a specific allowance | 391 | 0 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 6,929 | 6,103 | |
Loans with a specific allowance | 391 | 0 | |
Related Allowance | 1 | 0 | |
Average Investment | 7,157 | 6,083 | 4,188 |
Interest Income Recognized | 246 | 172 | 134 |
Commercial and Industrial | |||
Recorded Investment | |||
Loans without a specific allowance | 3,059 | 1,681 | |
Loans with a specific allowance | 1,183 | 1,295 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 3,251 | 1,933 | |
Loans with a specific allowance | 1,442 | 1,319 | |
Related Allowance | 752 | 128 | |
Average Investment | 4,672 | 3,208 | 2,800 |
Interest Income Recognized | 232 | 150 | 95 |
Residential 1-4 Family - Commercial | |||
Recorded Investment | |||
Loans without a specific allowance | 4,516 | 4,098 | |
Loans with a specific allowance | 3,180 | 1,062 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 4,576 | 4,879 | |
Loans with a specific allowance | 3,249 | 1,068 | |
Related Allowance | 185 | 35 | |
Average Investment | 7,904 | 5,428 | 6,225 |
Interest Income Recognized | 264 | 190 | 205 |
Residential 1-4 Family - Mortgage | |||
Recorded Investment | |||
Loans without a specific allowance | 8,504 | 9,512 | |
Loans with a specific allowance | 5,329 | 1,953 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 9,180 | 9,786 | |
Loans with a specific allowance | 5,548 | 2,070 | |
Related Allowance | 374 | 36 | |
Average Investment | 14,740 | 11,806 | 6,491 |
Interest Income Recognized | 152 | 194 | 86 |
Auto | |||
Recorded Investment | |||
Loans with a specific allowance | 576 | 413 | |
Unpaid Principal Balance | |||
Loans with a specific allowance | 830 | 577 | |
Related Allowance | 231 | 2 | |
Average Investment | 824 | 579 | 244 |
Interest Income Recognized | 20 | 19 | 5 |
HELOC | |||
Recorded Investment | |||
Loans without a specific allowance | 1,150 | 2,056 | |
Loans with a specific allowance | 724 | 464 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 1,269 | 2,144 | |
Loans with a specific allowance | 807 | 535 | |
Related Allowance | 188 | 51 | |
Average Investment | 2,000 | 2,659 | 1,513 |
Interest Income Recognized | 23 | 36 | 19 |
Consumer and all other | |||
Recorded Investment | |||
Loans without a specific allowance | 508 | 567 | |
Loans with a specific allowance | 178 | 204 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 580 | 734 | |
Loans with a specific allowance | 467 | 309 | |
Related Allowance | 64 | 35 | |
Average Investment | 749 | 810 | 567 |
Interest Income Recognized | $ 32 | $ 36 | $ 8 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Modified Loans that Continue to Accrue Interest Under the Terms of Restructuring Agreement) (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
loan
|
Dec. 31, 2017
USD ($)
loan
|
---|---|---|
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 114 | 88 |
Recorded Investment | $ 26,598 | $ 17,402 |
Outstanding Commitment | $ 0 | $ 0 |
Performing Financing Receivable | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 85 | 68 |
Recorded Investment | $ 19,201 | $ 14,553 |
Outstanding Commitment | $ 0 | $ 0 |
Performing Financing Receivable | Construction and Land Development | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 5 | 7 |
Recorded Investment | $ 2,496 | $ 2,803 |
Outstanding Commitment | $ 0 | $ 0 |
Performing Financing Receivable | Commercial Real Estate - Owner Occupied | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 8 | 5 |
Recorded Investment | $ 2,783 | $ 2,221 |
Outstanding Commitment | $ 0 | $ 0 |
Performing Financing Receivable | Commercial Real Estate - Non-Owner Occupied | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 4 | 2 |
Recorded Investment | $ 4,438 | $ 715 |
Outstanding Commitment | $ 0 | $ 0 |
Performing Financing Receivable | Commercial and Industrial | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 4 | 12 |
Recorded Investment | $ 978 | $ 2,057 |
Outstanding Commitment | $ 0 | $ 0 |
Performing Financing Receivable | Residential 1-4 Family - Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 30 | 16 |
Recorded Investment | $ 2,887 | $ 1,048 |
Outstanding Commitment | $ 0 | $ 0 |
Performing Financing Receivable | Residential 1-4 Family - Mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 30 | 24 |
Recorded Investment | $ 5,070 | $ 5,194 |
Outstanding Commitment | $ 0 | $ 0 |
Performing Financing Receivable | HELOC | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 2 | 1 |
Recorded Investment | $ 58 | $ 20 |
Outstanding Commitment | $ 0 | $ 0 |
Performing Financing Receivable | Consumer and all other | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 2 | 1 |
Recorded Investment | $ 491 | $ 495 |
Outstanding Commitment | $ 0 | $ 0 |
Nonperforming Financing Receivable | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 29 | 20 |
Recorded Investment | $ 7,397 | $ 2,849 |
Outstanding Commitment | $ 0 | $ 0 |
Nonperforming Financing Receivable | Construction and Land Development | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 2 | 2 |
Recorded Investment | $ 3,474 | $ 702 |
Outstanding Commitment | $ 0 | $ 0 |
Nonperforming Financing Receivable | Commercial Real Estate - Owner Occupied | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 2 | 2 |
Recorded Investment | $ 198 | $ 134 |
Outstanding Commitment | $ 0 | $ 0 |
Nonperforming Financing Receivable | Commercial and Industrial | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 6 | 2 |
Recorded Investment | $ 461 | $ 108 |
Outstanding Commitment | $ 0 | $ 0 |
Nonperforming Financing Receivable | Residential 1-4 Family - Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | 5 |
Recorded Investment | $ 60 | $ 558 |
Outstanding Commitment | $ 0 | $ 0 |
Nonperforming Financing Receivable | Residential 1-4 Family - Mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 15 | 7 |
Recorded Investment | $ 3,135 | $ 1,264 |
Outstanding Commitment | $ 0 | $ 0 |
Nonperforming Financing Receivable | HELOC | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 2 | 1 |
Recorded Investment | $ 62 | $ 59 |
Outstanding Commitment | $ 0 | $ 0 |
Nonperforming Financing Receivable | Consumer and all other | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | 1 |
Recorded Investment | $ 7 | $ 24 |
Outstanding Commitment | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of TDR by Class and Modification Type) (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018
USD ($)
loan
|
Dec. 31, 2017
USD ($)
loan
|
|
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 47 | 54 |
Recorded Investment at Period End | $ | $ 14,502 | $ 11,052 |
Term modification, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 24 | 28 |
Recorded Investment at Period End | $ | $ 8,626 | $ 7,441 |
Term modification, below market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 22 | 21 |
Recorded Investment at Period End | $ | $ 5,611 | $ 2,980 |
Interest rate modification, below market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | 0 |
Recorded Investment at Period End | $ | $ 265 | $ 0 |
Modified to interest only, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 0 | 5 |
Recorded Investment at Period End | $ | $ 0 | $ 631 |
Construction and Land Development | Term modification, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 4 | 4 |
Recorded Investment at Period End | $ | $ 4,675 | $ 1,564 |
Commercial Real Estate - Owner Occupied | Term modification, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 5 | 1 |
Recorded Investment at Period End | $ | $ 1,365 | $ 378 |
Commercial Real Estate - Owner Occupied | Term modification, below market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 0 | 1 |
Recorded Investment at Period End | $ | $ 0 | $ 837 |
Commercial Real Estate - Non-Owner Occupied | Term modification, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | 2 |
Recorded Investment at Period End | $ | $ 1,089 | $ 715 |
Commercial Real Estate - Non-Owner Occupied | Term modification, below market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | 0 |
Recorded Investment at Period End | $ | $ 2,782 | $ 0 |
Commercial and Industrial | Term modification, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 3 | 5 |
Recorded Investment at Period End | $ | $ 334 | $ 1,040 |
Commercial and Industrial | Term modification, below market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 0 | 2 |
Recorded Investment at Period End | $ | $ 0 | $ 78 |
Commercial and Industrial | Modified to interest only, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 0 | 5 |
Recorded Investment at Period End | $ | $ 0 | $ 631 |
Residential 1-4 Family - Commercial | Term modification, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 2 | 5 |
Recorded Investment at Period End | $ | $ 219 | $ 764 |
Residential 1-4 Family - Commercial | Term modification, below market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 10 | 5 |
Recorded Investment at Period End | $ | $ 1,064 | $ 183 |
Residential 1-4 Family - Commercial | Interest rate modification, below market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | 0 |
Recorded Investment at Period End | $ | $ 265 | $ 0 |
Residential 1-4 Family - Mortgage | Term modification, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 8 | 9 |
Recorded Investment at Period End | $ | $ 931 | $ 2,461 |
Residential 1-4 Family - Mortgage | Term modification, below market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 9 | 11 |
Recorded Investment at Period End | $ | $ 1,719 | $ 1,803 |
Consumer and all other | Term modification, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | 2 |
Recorded Investment at Period End | $ | $ 13 | $ 519 |
HELOC | Term modification, below market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 2 | 2 |
Recorded Investment at Period End | $ | $ 46 | $ 79 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Receivables Related Risk Rating Excluding Purchased Impaired Loans) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 9,716,207 | $ 7,141,552 |
Construction and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,194,821 | 948,791 |
Commercial Real Estate - Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,337,345 | 943,933 |
Commercial Real Estate - Non-Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,467,410 | 1,713,659 |
Multifamily Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 548,231 | 357,079 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,317,135 | 612,023 |
Residential 1-4 Family - Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 713,750 | 612,395 |
Residential 1-4 Family - Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 600,578 | 485,690 |
Auto | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 301,943 | 282,474 |
HELOC | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 613,383 | 537,521 |
Consumer and all other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 621,611 | 647,987 |
Excluding Purchased Impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 9,625,986 | 7,102,531 |
Excluding Purchased Impaired | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 9,344,002 | 6,880,526 |
Excluding Purchased Impaired | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 201,174 | 184,654 |
Excluding Purchased Impaired | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 80,810 | 34,114 |
Excluding Purchased Impaired | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 3,237 |
Excluding Purchased Impaired | Construction and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,186,167 | 945,953 |
Excluding Purchased Impaired | Construction and Land Development | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,130,577 | 869,111 |
Excluding Purchased Impaired | Construction and Land Development | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 43,894 | 62,517 |
Excluding Purchased Impaired | Construction and Land Development | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 11,696 | 14,325 |
Excluding Purchased Impaired | Construction and Land Development | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Excluding Purchased Impaired | Commercial Real Estate - Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,311,701 | 929,143 |
Excluding Purchased Impaired | Commercial Real Estate - Owner Occupied | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,231,422 | 872,130 |
Excluding Purchased Impaired | Commercial Real Estate - Owner Occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 50,939 | 52,268 |
Excluding Purchased Impaired | Commercial Real Estate - Owner Occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 29,340 | 4,745 |
Excluding Purchased Impaired | Commercial Real Estate - Owner Occupied | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Excluding Purchased Impaired | Commercial Real Estate - Non-Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,450,075 | 1,707,049 |
Excluding Purchased Impaired | Commercial Real Estate - Non-Owner Occupied | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,425,500 | 1,681,314 |
Excluding Purchased Impaired | Commercial Real Estate - Non-Owner Occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 17,648 | 19,899 |
Excluding Purchased Impaired | Commercial Real Estate - Non-Owner Occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,927 | 5,836 |
Excluding Purchased Impaired | Commercial Real Estate - Non-Owner Occupied | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Excluding Purchased Impaired | Multifamily Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 548,143 | 356,999 |
Excluding Purchased Impaired | Multifamily Real Estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 537,572 | 349,625 |
Excluding Purchased Impaired | Multifamily Real Estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 10,571 | 7,374 |
Excluding Purchased Impaired | Multifamily Real Estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Excluding Purchased Impaired | Multifamily Real Estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Excluding Purchased Impaired | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,314,979 | 611,615 |
Excluding Purchased Impaired | Commercial and Industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,273,549 | 595,923 |
Excluding Purchased Impaired | Commercial and Industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 34,864 | 13,533 |
Excluding Purchased Impaired | Commercial and Industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,566 | 2,159 |
Excluding Purchased Impaired | Commercial and Industrial | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Excluding Purchased Impaired | Residential 1-4 Family - Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 700,043 | 602,981 |
Excluding Purchased Impaired | Residential 1-4 Family - Commercial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 677,109 | 587,169 |
Excluding Purchased Impaired | Residential 1-4 Family - Commercial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 17,086 | 12,117 |
Excluding Purchased Impaired | Residential 1-4 Family - Commercial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 5,848 | 3,650 |
Excluding Purchased Impaired | Residential 1-4 Family - Commercial | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 45 |
Excluding Purchased Impaired | Residential 1-4 Family - Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 583,812 | 481,957 |
Excluding Purchased Impaired | Residential 1-4 Family - Mortgage | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 554,192 | 470,646 |
Excluding Purchased Impaired | Residential 1-4 Family - Mortgage | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 14,855 | 7,190 |
Excluding Purchased Impaired | Residential 1-4 Family - Mortgage | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 14,765 | 1,642 |
Excluding Purchased Impaired | Residential 1-4 Family - Mortgage | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 2,479 |
Excluding Purchased Impaired | Auto | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 301,936 | 282,474 |
Excluding Purchased Impaired | Auto | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 296,907 | 278,063 |
Excluding Purchased Impaired | Auto | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,590 | 4,131 |
Excluding Purchased Impaired | Auto | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,439 | 119 |
Excluding Purchased Impaired | Auto | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 161 |
Excluding Purchased Impaired | HELOC | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 608,268 | 536,571 |
Excluding Purchased Impaired | HELOC | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 598,444 | 531,358 |
Excluding Purchased Impaired | HELOC | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,316 | 3,867 |
Excluding Purchased Impaired | HELOC | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,508 | 857 |
Excluding Purchased Impaired | HELOC | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 489 |
Excluding Purchased Impaired | Consumer and all other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 620,862 | 647,789 |
Excluding Purchased Impaired | Consumer and all other | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 618,730 | 645,187 |
Excluding Purchased Impaired | Consumer and all other | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,411 | 1,758 |
Excluding Purchased Impaired | Consumer and all other | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 721 | 781 |
Excluding Purchased Impaired | Consumer and all other | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 0 | $ 63 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Allowance for Loan Loss Activity, by Portfolio Segment, Balances for Allowance for Credit Losses, and Loans Based on Impairment Methodology) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Allowance for loan losses: | |||||
Balance, beginning of the year | $ 38,208 | $ 37,192 | $ 34,047 | ||
Recoveries credited to allowance | 5,168 | 3,255 | 3,025 | ||
Loans charged off | (16,230) | (13,310) | (8,555) | ||
Provision charged to operations | 13,899 | 11,071 | 8,675 | ||
Balance, end of period | 41,045 | 38,208 | 37,192 | ||
Loans: | |||||
Loans individually evaluated for impairment | $ 59,228 | $ 53,481 | |||
ALL individually evaluated for impairment | 2,217 | 503 | |||
Loans collectively evaluated for impairment | 9,566,758 | 7,049,050 | |||
ALL collectively evaluated for impairment | 38,828 | 37,705 | |||
Total Loans | 9,716,207 | 7,141,552 | |||
Total ALL | 38,208 | 37,192 | 34,047 | 41,045 | 38,208 |
Purchased Impaired | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 0 | ||||
Balance, end of period | 0 | 0 | |||
Loans: | |||||
Total Loans | 90,221 | 39,021 | |||
Total ALL | 0 | 0 | 0 | 0 | |
Construction and Land Development | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 9,709 | 10,055 | 6,040 | ||
Recoveries credited to allowance | 447 | 206 | 505 | ||
Loans charged off | (2,005) | (2,190) | (958) | ||
Provision charged to operations | (1,348) | 1,638 | 4,468 | ||
Balance, end of period | 6,803 | 9,709 | 10,055 | ||
Loans: | |||||
Loans individually evaluated for impairment | 10,662 | 17,571 | |||
ALL individually evaluated for impairment | 63 | 122 | |||
Loans collectively evaluated for impairment | 1,175,505 | 928,382 | |||
ALL collectively evaluated for impairment | 6,740 | 9,587 | |||
Total Loans | 1,194,821 | 948,791 | |||
Total ALL | 9,709 | 10,055 | 6,040 | 6,803 | 9,709 |
Construction and Land Development | Purchased Impaired | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 0 | ||||
Balance, end of period | 0 | 0 | |||
Loans: | |||||
Total Loans | 8,654 | 2,838 | |||
Total ALL | 0 | 0 | 0 | 0 | |
Commercial Real Estate - Owner Occupied | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 2,931 | 3,801 | 4,614 | ||
Recoveries credited to allowance | 610 | 171 | 152 | ||
Loans charged off | (709) | (46) | (809) | ||
Provision charged to operations | 1,191 | (995) | (156) | ||
Balance, end of period | 4,023 | 2,931 | 3,801 | ||
Loans: | |||||
Loans individually evaluated for impairment | 12,690 | 6,588 | |||
ALL individually evaluated for impairment | 359 | 94 | |||
Loans collectively evaluated for impairment | 1,299,011 | 922,555 | |||
ALL collectively evaluated for impairment | 3,664 | 2,837 | |||
Total Loans | 1,337,345 | 943,933 | |||
Total ALL | 2,931 | 3,801 | 4,614 | 4,023 | 2,931 |
Commercial Real Estate - Owner Occupied | Purchased Impaired | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 0 | ||||
Balance, end of period | 0 | 0 | |||
Loans: | |||||
Total Loans | 25,644 | 14,790 | |||
Total ALL | 0 | 0 | 0 | 0 | |
Commercial Real Estate - Non-Owner Occupied | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 7,544 | 6,622 | 6,929 | ||
Recoveries credited to allowance | 100 | 2 | 80 | ||
Loans charged off | (94) | (1,180) | (1) | ||
Provision charged to operations | 1,315 | 2,100 | (386) | ||
Balance, end of period | 8,865 | 7,544 | 6,622 | ||
Loans: | |||||
Loans individually evaluated for impairment | 6,969 | 6,017 | |||
ALL individually evaluated for impairment | 1 | 0 | |||
Loans collectively evaluated for impairment | 2,443,106 | 1,701,032 | |||
ALL collectively evaluated for impairment | 8,864 | 7,544 | |||
Total Loans | 2,467,410 | 1,713,659 | |||
Total ALL | 7,544 | 6,622 | 6,929 | 8,865 | 7,544 |
Commercial Real Estate - Non-Owner Occupied | Purchased Impaired | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 0 | ||||
Balance, end of period | 0 | 0 | |||
Loans: | |||||
Total Loans | 17,335 | 6,610 | |||
Total ALL | 0 | 0 | 0 | 0 | |
Multifamily Real Estate | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 1,092 | 1,236 | 1,606 | ||
Recoveries credited to allowance | 5 | 0 | 0 | ||
Loans charged off | 0 | 0 | 0 | ||
Provision charged to operations | (448) | (144) | (370) | ||
Balance, end of period | 649 | 1,092 | 1,236 | ||
Loans: | |||||
Loans individually evaluated for impairment | 0 | 0 | |||
ALL individually evaluated for impairment | 0 | 0 | |||
Loans collectively evaluated for impairment | 548,143 | 356,999 | |||
ALL collectively evaluated for impairment | 649 | 1,092 | |||
Total Loans | 548,231 | 357,079 | |||
Total ALL | 1,092 | 1,236 | 1,606 | 649 | 1,092 |
Multifamily Real Estate | Purchased Impaired | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 0 | ||||
Balance, end of period | 0 | 0 | |||
Loans: | |||||
Total Loans | 88 | 80 | |||
Total ALL | 0 | 0 | 0 | 0 | |
Commercial and Industrial | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 4,552 | 4,627 | 3,163 | ||
Recoveries credited to allowance | 534 | 483 | 483 | ||
Loans charged off | (833) | (2,277) | (1,920) | ||
Provision charged to operations | 3,383 | 1,719 | 2,901 | ||
Balance, end of period | 7,636 | 4,552 | 4,627 | ||
Loans: | |||||
Loans individually evaluated for impairment | 4,242 | 2,976 | |||
ALL individually evaluated for impairment | 752 | 128 | |||
Loans collectively evaluated for impairment | 1,310,737 | 608,639 | |||
ALL collectively evaluated for impairment | 6,884 | 4,424 | |||
Total Loans | 1,317,135 | 612,023 | |||
Total ALL | 4,552 | 4,627 | 3,163 | 7,636 | 4,552 |
Commercial and Industrial | Purchased Impaired | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 0 | ||||
Balance, end of period | 0 | 0 | |||
Loans: | |||||
Total Loans | 2,156 | 408 | |||
Total ALL | 0 | 0 | 0 | 0 | |
Residential 1-4 Family - Commercial | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 4,437 | 3,698 | 3,025 | ||
Recoveries credited to allowance | 353 | 329 | 318 | ||
Loans charged off | (176) | (463) | (716) | ||
Provision charged to operations | (2,630) | 873 | 1,071 | ||
Balance, end of period | 1,984 | 4,437 | 3,698 | ||
Loans: | |||||
Loans individually evaluated for impairment | 7,696 | 5,160 | |||
ALL individually evaluated for impairment | 185 | 35 | |||
Loans collectively evaluated for impairment | 692,347 | 597,821 | |||
ALL collectively evaluated for impairment | 1,799 | 4,402 | |||
Total Loans | 713,750 | 612,395 | |||
Total ALL | 4,437 | 3,698 | 3,025 | 1,984 | 4,437 |
Residential 1-4 Family - Commercial | Purchased Impaired | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 0 | ||||
Balance, end of period | 0 | 0 | |||
Loans: | |||||
Total Loans | 13,707 | 9,414 | |||
Total ALL | 0 | 0 | 0 | 0 | |
Residential 1-4 Family - Mortgage | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 1,524 | 2,701 | 2,389 | ||
Recoveries credited to allowance | 310 | 102 | 267 | ||
Loans charged off | (852) | (588) | (184) | ||
Provision charged to operations | 218 | (691) | 229 | ||
Balance, end of period | 1,200 | 1,524 | 2,701 | ||
Loans: | |||||
Loans individually evaluated for impairment | 13,833 | 11,465 | |||
ALL individually evaluated for impairment | 374 | 36 | |||
Loans collectively evaluated for impairment | 569,979 | 470,492 | |||
ALL collectively evaluated for impairment | 826 | 1,488 | |||
Total Loans | 600,578 | 485,690 | |||
Total ALL | 1,524 | 2,701 | 2,389 | 1,200 | 1,524 |
Residential 1-4 Family - Mortgage | Purchased Impaired | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 0 | ||||
Balance, end of period | 0 | 0 | |||
Loans: | |||||
Total Loans | 16,766 | 3,733 | |||
Total ALL | 0 | 0 | 0 | 0 | |
Auto | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 975 | 946 | 1,703 | ||
Recoveries credited to allowance | 436 | 459 | 327 | ||
Loans charged off | (1,074) | (1,038) | (1,052) | ||
Provision charged to operations | 1,106 | 608 | (32) | ||
Balance, end of period | 1,443 | 975 | 946 | ||
Loans: | |||||
Loans individually evaluated for impairment | 576 | 413 | |||
ALL individually evaluated for impairment | 231 | 2 | |||
Loans collectively evaluated for impairment | 301,360 | 282,061 | |||
ALL collectively evaluated for impairment | 1,212 | 973 | |||
Total Loans | 301,943 | 282,474 | |||
Total ALL | 975 | 946 | 1,703 | 1,443 | 975 |
Auto | Purchased Impaired | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 0 | ||||
Balance, end of period | 0 | 0 | |||
Loans: | |||||
Total Loans | 7 | 0 | |||
Total ALL | 0 | 0 | 0 | 0 | |
HELOC | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 1,360 | 1,328 | 2,934 | ||
Recoveries credited to allowance | 636 | 314 | 459 | ||
Loans charged off | (1,206) | (1,019) | (1,457) | ||
Provision charged to operations | 507 | 737 | (608) | ||
Balance, end of period | 1,297 | 1,360 | 1,328 | ||
Loans: | |||||
Loans individually evaluated for impairment | 1,874 | 2,520 | |||
ALL individually evaluated for impairment | 188 | 51 | |||
Loans collectively evaluated for impairment | 606,394 | 534,051 | |||
ALL collectively evaluated for impairment | 1,109 | 1,309 | |||
Total Loans | 613,383 | 537,521 | |||
Total ALL | 1,360 | 1,328 | 2,934 | 1,297 | 1,360 |
HELOC | Purchased Impaired | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 0 | ||||
Balance, end of period | 0 | 0 | |||
Loans: | |||||
Total Loans | 5,115 | 950 | |||
Total ALL | 0 | 0 | 0 | 0 | |
Consumer and all other | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 4,084 | 2,178 | 1,644 | ||
Recoveries credited to allowance | 1,737 | 1,189 | 434 | ||
Loans charged off | (9,281) | (4,509) | (1,458) | ||
Provision charged to operations | 10,605 | 5,226 | 1,558 | ||
Balance, end of period | 7,145 | 4,084 | 2,178 | ||
Loans: | |||||
Loans individually evaluated for impairment | 686 | 771 | |||
ALL individually evaluated for impairment | 64 | 35 | |||
Loans collectively evaluated for impairment | 620,176 | 647,018 | |||
ALL collectively evaluated for impairment | 7,081 | 4,049 | |||
Total Loans | 621,611 | 647,987 | |||
Total ALL | 4,084 | 2,178 | $ 1,644 | 7,145 | 4,084 |
Consumer and all other | Purchased Impaired | |||||
Allowance for loan losses: | |||||
Balance, beginning of the year | 0 | ||||
Balance, end of period | 0 | 0 | |||
Loans: | |||||
Total Loans | 749 | 198 | |||
Total ALL | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Receivables Related Risk Rating Including Purchased Impaired Loans) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 9,716,207 | $ 7,141,552 |
Construction and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,194,821 | 948,791 |
Commercial Real Estate - Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,337,345 | 943,933 |
Commercial Real Estate - Non-Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,467,410 | 1,713,659 |
Multifamily Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 548,231 | 357,079 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,317,135 | 612,023 |
Residential 1-4 Family - Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 713,750 | 612,395 |
Residential 1-4 Family - Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 600,578 | 485,690 |
Auto | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 301,943 | 282,474 |
HELOC | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 613,383 | 537,521 |
Consumer and all other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 621,611 | 647,987 |
Purchased Impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 90,221 | 39,021 |
Purchased Impaired | Construction and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 8,654 | 2,838 |
Purchased Impaired | Commercial Real Estate - Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 25,644 | 14,790 |
Purchased Impaired | Commercial Real Estate - Non-Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 17,335 | 6,610 |
Purchased Impaired | Multifamily Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 88 | 80 |
Purchased Impaired | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,156 | 408 |
Purchased Impaired | Residential 1-4 Family - Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 13,707 | 9,414 |
Purchased Impaired | Residential 1-4 Family - Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 16,766 | 3,733 |
Purchased Impaired | Auto | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 7 | 0 |
Purchased Impaired | HELOC | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 5,115 | 950 |
Purchased Impaired | Consumer and all other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 749 | 198 |
Purchased Impaired | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 35,658 | 19,017 |
Purchased Impaired | Pass | Construction and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,835 | 1,462 |
Purchased Impaired | Pass | Commercial Real Estate - Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 8,347 | 4,958 |
Purchased Impaired | Pass | Commercial Real Estate - Non-Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,789 | 3,920 |
Purchased Impaired | Pass | Multifamily Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Purchased Impaired | Pass | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 762 | 85 |
Purchased Impaired | Pass | Residential 1-4 Family - Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,512 | 5,234 |
Purchased Impaired | Pass | Residential 1-4 Family - Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 9,894 | 2,764 |
Purchased Impaired | Pass | Auto | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 7 | |
Purchased Impaired | Pass | HELOC | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,438 | 446 |
Purchased Impaired | Pass | Consumer and all other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 74 | 148 |
Purchased Impaired | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 21,699 | 13,881 |
Purchased Impaired | Special Mention | Construction and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,308 | 1,260 |
Purchased Impaired | Special Mention | Commercial Real Estate - Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,685 | 7,486 |
Purchased Impaired | Special Mention | Commercial Real Estate - Non-Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 7,992 | 1,394 |
Purchased Impaired | Special Mention | Multifamily Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 88 | 80 |
Purchased Impaired | Special Mention | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 134 | 123 |
Purchased Impaired | Special Mention | Residential 1-4 Family - Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,771 | 2,877 |
Purchased Impaired | Special Mention | Residential 1-4 Family - Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,030 | 329 |
Purchased Impaired | Special Mention | Auto | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Purchased Impaired | Special Mention | HELOC | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,031 | 291 |
Purchased Impaired | Special Mention | Consumer and all other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 660 | 41 |
Purchased Impaired | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 32,864 | 5,435 |
Purchased Impaired | Substandard | Construction and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 5,511 | 116 |
Purchased Impaired | Substandard | Commercial Real Estate - Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 10,612 | 2,346 |
Purchased Impaired | Substandard | Commercial Real Estate - Non-Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,554 | 1,296 |
Purchased Impaired | Substandard | Multifamily Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Purchased Impaired | Substandard | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,260 | 200 |
Purchased Impaired | Substandard | Residential 1-4 Family - Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,424 | 1,303 |
Purchased Impaired | Substandard | Residential 1-4 Family - Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 5,842 | 71 |
Purchased Impaired | Substandard | Auto | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Purchased Impaired | Substandard | HELOC | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 646 | 94 |
Purchased Impaired | Substandard | Consumer and all other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 15 | 9 |
Purchased Impaired | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 688 |
Purchased Impaired | Doubtful | Construction and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Purchased Impaired | Doubtful | Commercial Real Estate - Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Purchased Impaired | Doubtful | Commercial Real Estate - Non-Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Purchased Impaired | Doubtful | Multifamily Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Purchased Impaired | Doubtful | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Purchased Impaired | Doubtful | Residential 1-4 Family - Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Purchased Impaired | Doubtful | Residential 1-4 Family - Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 569 |
Purchased Impaired | Doubtful | Auto | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Purchased Impaired | Doubtful | HELOC | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 119 |
Purchased Impaired | Doubtful | Consumer and all other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Acquired Loan Portfolio and Accretable Yield) (Details) - Purchased Impaired - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Accretable Yield | ||
Balance at beginning of period | $ 14,563 | $ 19,739 |
Additions | 12,225 | 0 |
Accretion | (8,654) | (6,426) |
Reclass of nonaccretable difference due to improvement in expected cash flows | 1,876 | 2,237 |
Measurement period adjustment | 3,974 | 0 |
Other, net | 7,217 | (987) |
Balance at end of period | $ 31,201 | $ 14,563 |
PREMISES AND EQUIPMENT (Narrative) (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 13,600,000 | $ 10,900,000 | $ 9,800,000 |
Renewable lease period, maximum | 20 years | ||
Rental expense | $ 9,200,000 | 5,900,000 | 6,100,000 |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Amortization | 228,000 | 0 | 0 |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Amortization | $ 130,000 | $ 0 | $ 0 |
PREMISES AND EQUIPMENT (Summary of Bank Premises and Equipment) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total | $ 240,519 | $ 203,126 |
Less accumulated depreciation and amortization | 93,552 | 83,522 |
Bank premises and equipment, net | 146,967 | 119,604 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | 41,494 | 29,706 |
Land Improvements and Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total | 119,649 | 99,199 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 10,266 | 9,712 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 62,154 | 56,000 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 6,956 | $ 8,509 |
PREMISES AND EQUIPMENT (Schedule of Future Minimum Rental Payments Required) (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Property, Plant and Equipment [Abstract] | |
2019 | $ 11,805 |
2020 | 10,061 |
2021 | 8,273 |
2022 | 7,032 |
2023 | 6,270 |
Thereafter | 18,329 |
Total of future payments | $ 61,770 |
INTANGIBLE ASSETS (Narrative) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
May 31, 2016 |
|
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, written off | $ 864,000 | ||||
Intangible assets, amortization expense | $ 12,839,000 | $ 6,088,000 | $ 7,210,000 | ||
Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, amortization period | 4 years | ||||
Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, amortization period | 14 years | ||||
Core Deposits | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, amortization period | 4 years | ||||
Core Deposits | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, amortization period | 14 years | ||||
Other Intangible Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, amortization expense | 0 | 0 | |||
Other Intangible Assets | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, amortization period | 5 years | ||||
Other Intangible Assets | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, amortization period | 10 years | ||||
Core Deposits and Other Intangible Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, amortization expense | $ 12,800,000 | $ 6,100,000 | $ 7,200,000 | ||
ODCM | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Business combination, finite-lived intangibles | $ 4,500,000 | ||||
ODCM | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, amortization period | 5 years | ||||
ODCM | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, amortization period | 10 years |
INTANGIBLE ASSETS (Information Concerning Intangible Assets with Finite Life) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Value | $ 48,685 | |
Amortizable core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 95,152 | $ 56,046 |
Accumulated Amortization | 57,293 | 45,193 |
Net Carrying Value | 37,859 | 10,853 |
Other amortizable intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 12,695 | 4,715 |
Accumulated Amortization | 1,870 | 765 |
Net Carrying Value | $ 10,825 | $ 3,950 |
INTANGIBLE ASSETS (Estimated Remaining Amortization Expense of Core Deposit Intangibles and Other Intangible Assets) (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Estimated Remaining Amortization of Intangibles | |
2018 | $ 11,092 |
2019 | 9,228 |
2020 | 7,438 |
2021 | 5,864 |
2022 | 4,871 |
Thereafter | 10,192 |
Net Carrying Value | $ 48,685 |
DEPOSITS (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Cash and Cash Equivalents [Line Items] | ||
Time deposits held in Certificates of Deposit | $ 2,089,706 | |
Deposit overdrafts as other consumer loans | 2,000 | $ 1,300 |
CDARS | ||
Cash and Cash Equivalents [Line Items] | ||
Time deposits held in Certificates of Deposit | $ 118,300 | $ 13,900 |
Maximum | CDARS | ||
Cash and Cash Equivalents [Line Items] | ||
Maturity of deposits held in Certificate of Deposits | 1 year |
DEPOSITS (Schedule of Deposits by Type) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Deposits, Interest-bearing and Noninterest-bearing, Alternative [Abstract] | ||
NOW accounts | $ 2,288,523 | $ 1,929,416 |
Money market accounts | 2,875,301 | 1,685,174 |
Savings accounts | 622,823 | 546,274 |
Time deposits of $250,000 and over | 292,224 | 226,205 |
Other time deposits | 1,797,482 | 1,102,441 |
Total interest-bearing deposits | $ 7,876,353 | $ 5,489,510 |
DEPOSITS (Scheduled Maturities of Time Deposits) (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Deposits, Interest-bearing and Noninterest-bearing, Alternative [Abstract] | |
2019 | $ 1,197,966 |
2020 | 558,280 |
2021 | 140,717 |
2022 | 107,898 |
2023 | 84,837 |
Thereafter | 8 |
Total scheduled maturities of time deposits | $ 2,089,706 |
BORROWINGS (Short-Term Borrowings) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Debt Disclosure [Abstract] | ||
Securities sold under agreements to repurchase | $ 39,197 | $ 49,152 |
FHLB advances | 1,043,600 | 745,000 |
Other short-term borrowings | 5,000 | 0 |
Total short-term borrowings | 1,087,797 | 794,152 |
Maximum month-end outstanding balance | 1,087,797 | 794,152 |
Average outstanding balance during the period | $ 968,014 | $ 602,553 |
Average interest rate | 1.91% | 1.00% |
Average interest rate at end of period | 2.43% | 1.32% |
BORROWINGS (Narrative) (Details) - USD ($) |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Jan. 01, 2018 |
Jan. 01, 2014 |
Aug. 23, 2012 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Subordinated Borrowing [Line Items] | ||||||
Remaining available balance for the federal funds lines | $ 382,000,000 | $ 227,000,000 | ||||
Remaining borrowing capacity with correspondent banks | 25,000,000 | 25,000,000 | ||||
Maximum collateral dependent line of credit with the FHLB | 4,000,000,000 | 2,700,000,000 | ||||
Subordinated debt | 158,500,000 | 150,000,000 | ||||
Prepayment penalty | $ 19,600,000 | |||||
Prepayment penalty amortization expense | 2,000,000 | 1,900,000 | $ 1,900,000 | |||
Trust Preferred Capital Notes | ||||||
Subordinated Borrowing [Line Items] | ||||||
Trust preferred capital notes principal balance | 145,500,000 | |||||
Remaining fair value discount on acquired notes | 15,700,000 | |||||
Subordinated Debt Notes | ||||||
Subordinated Borrowing [Line Items] | ||||||
Remaining fair value discount on acquired notes | $ 1,600,000 | $ 1,800,000 | ||||
Stated percentage on debt instrument | 5.00% | |||||
Subordinated debt maturity date | Dec. 15, 2026 | |||||
LIBOR | Subordinated Debt Notes | ||||||
Subordinated Borrowing [Line Items] | ||||||
Three-month LIBOR rate plus | 3.175% | |||||
Acquisitions, Prior To 2006 | ||||||
Subordinated Borrowing [Line Items] | ||||||
Trust preferred capital notes principal balance | $ 58,500,000 | |||||
StellarOne Bank | Trust Preferred Capital Notes | ||||||
Subordinated Borrowing [Line Items] | ||||||
Trust preferred capital notes principal balance | $ 32,000,000 | |||||
Xenith | ||||||
Subordinated Borrowing [Line Items] | ||||||
Trust preferred capital notes principal balance | $ 55,000,000 | |||||
Subordinated debt | 8,500,000 | |||||
Xenith | Trust Preferred Capital Notes | ||||||
Subordinated Borrowing [Line Items] | ||||||
Remaining fair value discount on acquired notes | 9,900,000 | |||||
Xenith | Subordinated Debt Notes | ||||||
Subordinated Borrowing [Line Items] | ||||||
Remaining fair value discount on acquired notes | $ 259,000 | $ 154,000 | ||||
Stated percentage on debt instrument | 6.75% |
BORROWINGS (Trust Preferred Capital Notes Qualify for Tier 1 Capital) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Trust preferred capital notes qualify for Tier 1 capital | ||
Investment | $ 250,210 | $ 102,871 |
Statutory Trust | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Trust preferred capital notes principal balance | 22,500 | |
Investment | $ 696 | |
Rate | 5.56% | |
Maturity Date | Jun. 17, 2034 | |
Statutory Trust II | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Trust preferred capital notes principal balance | $ 36,000 | |
Investment | $ 1,114 | |
Rate | 4.21% | |
Maturity Date | Jun. 15, 2036 | |
VFG Limited Liability Trust I Indenture | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Trust preferred capital notes principal balance | $ 20,000 | |
Investment | $ 619 | |
Rate | 5.54% | |
Maturity Date | Mar. 18, 2034 | |
FNB Statutory Trust II Indenture | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Trust preferred capital notes principal balance | $ 12,000 | |
Investment | $ 372 | |
Rate | 5.91% | |
Maturity Date | Jun. 26, 2033 | |
Gateway Capital Statutory Trust I | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Trust preferred capital notes principal balance | $ 8,000 | |
Investment | $ 248 | |
Rate | 5.91% | |
Maturity Date | Sep. 17, 2033 | |
Gateway Capital Statutory Trust II | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Trust preferred capital notes principal balance | $ 7,000 | |
Investment | $ 217 | |
Rate | 5.46% | |
Maturity Date | Jun. 17, 2034 | |
Gateway Capital Statutory Trust III | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Trust preferred capital notes principal balance | $ 15,000 | |
Investment | $ 464 | |
Rate | 4.31% | |
Maturity Date | May 30, 2036 | |
Gateway Capital Statutory Trust IV | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Trust preferred capital notes principal balance | $ 25,000 | |
Investment | $ 774 | |
Rate | 4.36% | |
Maturity Date | Jul. 30, 2037 | |
Trust Preferred Capital Notes | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Trust preferred capital notes principal balance | $ 145,500 | |
Investment | $ 4,504 | |
LIBOR | Statutory Trust | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Spread on LIBOR | 2.75% | |
LIBOR | Statutory Trust II | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Spread on LIBOR | 1.40% | |
LIBOR | VFG Limited Liability Trust I Indenture | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Spread on LIBOR | 2.73% | |
LIBOR | FNB Statutory Trust II Indenture | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Spread on LIBOR | 3.10% | |
LIBOR | Gateway Capital Statutory Trust I | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Spread on LIBOR | 3.10% | |
LIBOR | Gateway Capital Statutory Trust II | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Spread on LIBOR | 2.65% | |
LIBOR | Gateway Capital Statutory Trust III | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Spread on LIBOR | 1.50% | |
LIBOR | Gateway Capital Statutory Trust IV | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Spread on LIBOR | 1.55% |
BORROWINGS (Advances from the FHLB) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Advances from the FHLB | ||
Advance Amount | $ 385,000 | $ 200,000 |
Adjustable Rate Credit One | ||
Advances from the FHLB | ||
Interest Rate | 3.25% | 2.13% |
Maturity Date | Aug. 23, 2022 | Aug. 23, 2022 |
Advance Amount | $ 55,000 | $ 55,000 |
Adjustable Rate Credit Two | ||
Advances from the FHLB | ||
Interest Rate | 3.26% | 2.15% |
Maturity Date | Nov. 23, 2022 | Nov. 23, 2022 |
Advance Amount | $ 65,000 | $ 65,000 |
Adjustable Rate Credit Three | ||
Advances from the FHLB | ||
Interest Rate | 3.26% | 2.15% |
Maturity Date | Nov. 23, 2022 | Nov. 23, 2022 |
Advance Amount | $ 10,000 | $ 10,000 |
Adjustable Rate Credit Four | ||
Advances from the FHLB | ||
Interest Rate | 3.26% | 2.15% |
Maturity Date | Nov. 23, 2022 | Nov. 23, 2022 |
Advance Amount | $ 10,000 | $ 10,000 |
Fixed Rate Convertible | ||
Advances from the FHLB | ||
Interest Rate | 1.78% | |
Maturity Date | Oct. 26, 2028 | |
Advance Amount | $ 200,000 | |
Fixed Rate One | ||
Advances from the FHLB | ||
Interest Rate | 3.75% | |
Maturity Date | Jul. 30, 2018 | |
Advance Amount | $ 5,000 | |
Fixed Rate Two | ||
Advances from the FHLB | ||
Interest Rate | 3.97% | |
Maturity Date | Jul. 30, 2018 | |
Advance Amount | $ 5,000 | |
Fixed Rate Hybrid One | ||
Advances from the FHLB | ||
Interest Rate | 2.37% | 0.99% |
Maturity Date | Oct. 10, 2019 | Oct. 19, 2018 |
Advance Amount | $ 25,000 | $ 30,000 |
Fixed Rate Hybrid Two | ||
Advances from the FHLB | ||
Interest Rate | 1.58% | 1.58% |
Maturity Date | May 18, 2020 | May 18, 2020 |
Advance Amount | $ 20,000 | $ 20,000 |
LIBOR | Adjustable Rate Credit One | ||
Advances from the FHLB | ||
Spread on LIBOR | 0.44% | 0.44% |
LIBOR | Adjustable Rate Credit Two | ||
Advances from the FHLB | ||
Spread on LIBOR | 0.45% | 0.45% |
LIBOR | Adjustable Rate Credit Three | ||
Advances from the FHLB | ||
Spread on LIBOR | 0.45% | 0.45% |
LIBOR | Adjustable Rate Credit Four | ||
Advances from the FHLB | ||
Spread on LIBOR | 0.45% | 0.45% |
BORROWINGS (Contractual Maturities of Long-Term Debt) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Premium (Discount) | ||
2019 | $ (862) | |
2020 | (936) | |
2021 | (1,006) | |
2022 | (1,029) | |
2023 | (1,051) | |
Thereafter | (12,221) | |
Total Long-term borrowings | (17,105) | |
Prepayment Penalty | ||
2019 | (2,018) | |
2020 | (2,074) | |
2021 | (2,119) | |
2022 | (1,707) | |
2023 | 0 | |
Thereafter | 0 | |
Total Long-term borrowings | (7,918) | |
Total Long-term Borrowings | ||
2019 | 22,120 | |
2020 | 16,990 | |
2021 | (3,125) | |
2022 | 137,264 | |
2023 | (1,051) | |
Thereafter | 496,283 | |
Long-term Debt | 668,481 | $ 425,262 |
Trust Preferred Capital Notes | ||
Total Long-term Borrowings, Gross | ||
Thereafter | 150,004 | |
Total Long-term borrowings | 150,004 | |
Subordinated Debt | ||
Total Long-term Borrowings, Gross | ||
Thereafter | 158,500 | |
Total Long-term Borrowings | ||
Long-term Debt | 158,500 | |
FHLB advances | ||
Total Long-term Borrowings, Gross | ||
2019 | 25,000 | |
2020 | 20,000 | |
2021 | 0 | |
2022 | 140,000 | |
2023 | 0 | |
Thereafter | 200,000 | |
Total Long-term borrowings | $ 385,000 |
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Off-balance sheet credit risks, amount, liability | $ 1,400 | $ 795 |
Daily average required reserves | 58,000 | 77,900 |
Deposits with other financial institutions | 18,900 | |
Uninsured deposits with other financial institutions | 3,700 | $ 12,300 |
Cash Flow Hedging | ||
Deposits with other financial institutions serves as collateral for cash flow hedge | $ 13,500 |
COMMITMENTS AND CONTINGENCIES (Balances of Commitments and Contingencies) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Commitments with off-balance sheet risk: | ||
Total commitments with off-balance sheet risk | $ 3,334,682 | $ 2,320,247 |
Commitments to Extend Credit | ||
Commitments with off-balance sheet risk: | ||
Total commitments with off-balance sheet risk | 3,167,085 | 2,192,812 |
Standby Letters of Credit | ||
Commitments with off-balance sheet risk: | ||
Total commitments with off-balance sheet risk | $ 167,597 | $ 127,435 |
COMMITMENTS AND CONTINGENCIES (Schedule of Securities Pledged as Collateral) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Cash | $ 13,509 | $ 23,870 |
Loans | 3,337,289 | 2,390,509 |
Total pledged assets | 3,732,286 | 2,951,852 |
Public deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Cash | 0 | 0 |
Loans | 0 | 0 |
Total pledged assets | 300,576 | 439,954 |
Repurchase agreements | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Cash | 0 | 0 |
Loans | 0 | 0 |
Total pledged assets | 55,269 | 77,942 |
FHLB advances | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Cash | 0 | 0 |
Loans | 3,337,289 | 2,390,509 |
Total pledged assets | 3,337,777 | 2,391,387 |
Derivatives | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Cash | 13,509 | 23,870 |
Loans | 0 | 0 |
Total pledged assets | 15,447 | 27,526 |
Other purposes | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Cash | 0 | 0 |
Loans | 0 | 0 |
Total pledged assets | 23,217 | 15,043 |
Available-for-sale Securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged | 374,081 | 339,991 |
Available-for-sale Securities | Public deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged | 293,169 | 242,472 |
Available-for-sale Securities | Repurchase agreements | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged | 55,269 | 77,942 |
Available-for-sale Securities | FHLB advances | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged | 488 | 878 |
Available-for-sale Securities | Derivatives | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged | 1,938 | 3,656 |
Available-for-sale Securities | Other purposes | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged | 23,217 | 15,043 |
Held-to-maturity Securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged | 7,407 | 197,482 |
Held-to-maturity Securities | Public deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged | 7,407 | 197,482 |
Held-to-maturity Securities | Repurchase agreements | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged | 0 | 0 |
Held-to-maturity Securities | FHLB advances | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged | 0 | 0 |
Held-to-maturity Securities | Derivatives | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged | 0 | 0 |
Held-to-maturity Securities | Other purposes | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged | $ 0 | $ 0 |
DERIVATIVES (Narrative) (Details) |
12 Months Ended | ||
---|---|---|---|
Jun. 16, 2016
USD ($)
derivative_instrument
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Derivatives, Fair Value [Line Items] | |||
Carrying Amount of Hedged Asset Amount | $ 50,000,000 | ||
Cumulative Amount of Basis Adjustments Included in the Carrying Amount of the Hedged Asset | $ 1,400,000 | ||
Minimum | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate lock commitments period | 30 days | ||
Maximum | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate lock commitments period | 120 days | ||
Cash Flow Hedging | |||
Derivatives, Fair Value [Line Items] | |||
Number of interest rate derivatives terminated | derivative_instrument | 3 | ||
Unrealized gain within accumulated other comprehensive income, to be reclassified into earnings | $ 1,300,000 | ||
Reclassification of gain (loss) from accumulated other comprehensive income to earnings, estimate of time to transfer | 3 years | ||
Estimated net amount of gains expected to be reclassified into earnings within the next twelve months | $ 297,000 | ||
Loans | Fair Value Hedging | |||
Derivatives, Fair Value [Line Items] | |||
Aggregate notional amount of the hedged items | 87,600,000 | $ 81,000,000 | |
Fair value of aggregate notional amount of the hedged items, unrealized loss | (1,600,000) | $ (1,200,000) | |
Available-for-sale Securities | Fair Value Hedging | |||
Derivatives, Fair Value [Line Items] | |||
Aggregate notional amount of the hedged items | 50,000,000 | ||
Fair value of aggregate notional amount of the hedged items, unrealized loss | 1,400,000 | ||
Interest Rate Lock Commitments | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, amount | $ 0 |
DERIVATIVES (Summary of the Derivatives) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Interest Rate Lock Commitments | Not Designated as accounting hedges | ||
Summary of the derivative designated as a cash flow hedge | ||
Derivative, amount | $ 0 | $ 34,314 |
Asset | 0 | 559 |
Liabilities | 0 | 0 |
Best Efforts Forward Delivery Commitments | Not Designated as accounting hedges | ||
Summary of the derivative designated as a cash flow hedge | ||
Derivative, amount | 0 | 73,777 |
Asset | 0 | 12 |
Liabilities | 0 | 0 |
Pay Fixed - Receive Floating Interest Rate Swaps | Not Designated as accounting hedges | ||
Summary of the derivative designated as a cash flow hedge | ||
Derivative, amount | 878,446 | 529,736 |
Asset | 10,120 | 0 |
Liabilities | 9,306 | 1,350 |
Pay Floating - Receive Fixed Interest Rate Swaps | Not Designated as accounting hedges | ||
Summary of the derivative designated as a cash flow hedge | ||
Derivative, amount | 878,446 | 529,736 |
Asset | 9,306 | 1,350 |
Liabilities | 10,120 | 0 |
Cash Flow Hedges | Designated as accounting hedges | ||
Summary of the derivative designated as a cash flow hedge | ||
Derivative, amount | 152,500 | 152,500 |
Asset | 0 | 49 |
Liabilities | 4,786 | 8,005 |
Fair Value Hedges | Designated as accounting hedges | ||
Summary of the derivative designated as a cash flow hedge | ||
Derivative, amount | 137,596 | 80,973 |
Asset | 1,872 | 1,598 |
Liabilities | $ 1,684 | $ 76 |
DERIVATIVES (Summary of the Carrying Value of the Company's Hedged Assets in Fair Value Hedges) (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Derivative [Line Items] | |
Carrying Amount of Hedged Asset Amount | $ 50,000 |
Cumulative Amount of Basis Adjustments Included in the Carrying Amount of the Hedged Asset | 1,400 |
Portfolio, last-of-layer, amortized cost | 224,000 |
Available-for-sale Securities | |
Derivative [Line Items] | |
Carrying Amount of Hedged Asset Amount | 224,241 |
Cumulative Amount of Basis Adjustments Included in the Carrying Amount of the Hedged Asset | 1,399 |
Loans | |
Derivative [Line Items] | |
Carrying Amount of Hedged Asset Amount | 87,596 |
Cumulative Amount of Basis Adjustments Included in the Carrying Amount of the Hedged Asset | $ (1,572) |
STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Reclassifications of unrealized gains (losses) on AFS | [1] | $ 383 | $ 800 | $ 205 | |||
Amounts reclassified from accumulated other comprehensive income | 33 | (417) | |||||
Unrealized Gains (Losses) on BOLI | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Amounts reclassified from accumulated other comprehensive income | $ 76 | $ 363 | $ 263 | ||||
Accounting Standards Update 2017-12 | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Reclassifications of unrealized gains (losses) on AFS | $ 400 | ||||||
Accounting Standards Update 2018-02 | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Amounts reclassified from accumulated other comprehensive income | $ (107) | ||||||
Accounting Standards Update 2016-01 | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Amounts reclassified from accumulated other comprehensive income | $ (61) | ||||||
Serial Preferred Stock | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Preferred stock, shares authorized | 500,000 | ||||||
Preferred stock, par value (usd per share) | $ 10.00 | ||||||
Preferred stock, shares issued | 0 | 0 | |||||
Preferred stock, shares outstanding | 0 | 0 | |||||
|
STOCKHOLDERS' EQUITY (Change in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,046,329 | $ 1,001,032 | $ 995,367 |
Other comprehensive income (loss) before reclassification | 2,892 | (9,644) | |
Amounts reclassified from accumulated other comprehensive income | 33 | (417) | |
Other comprehensive income (loss) | (9,343) | 2,925 | (10,061) |
Ending balance | 1,924,581 | 1,046,329 | 1,001,032 |
Unrealized Gains (Losses) on AFS Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 1,874 | (542) | 7,777 |
Transfer of HTM securities to AFS securities | 2,785 | ||
Cumulative effects from adoption of new accounting standards | 465 | ||
Other comprehensive income (loss) before reclassification | (10,711) | 2,936 | (8,186) |
Amounts reclassified from accumulated other comprehensive income | (362) | (520) | (133) |
Other comprehensive income (loss) | (11,073) | 2,416 | (8,319) |
Ending balance | (5,949) | 1,874 | (542) |
Unrealized Gains (Losses) for AFS Securities Transferred to HTM | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 2,705 | 3,377 | 4,432 |
Transfer of HTM securities to AFS securities | (2,785) | ||
Cumulative effects from adoption of new accounting standards | 583 | ||
Other comprehensive income (loss) before reclassification | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | (408) | (672) | (1,055) |
Other comprehensive income (loss) | (408) | (672) | (1,055) |
Ending balance | 95 | 2,705 | 3,377 |
Change in Fair Value of Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (4,361) | (5,179) | (5,957) |
Transfer of HTM securities to AFS securities | 0 | ||
Cumulative effects from adoption of new accounting standards | (1,094) | ||
Other comprehensive income (loss) before reclassification | 1,087 | (44) | 270 |
Amounts reclassified from accumulated other comprehensive income | 975 | 862 | 508 |
Other comprehensive income (loss) | 2,062 | 818 | 778 |
Ending balance | (3,393) | (4,361) | (5,179) |
Unrealized Gains (Losses) on BOLI | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (1,102) | (1,465) | 0 |
Transfer of HTM securities to AFS securities | 0 | ||
Cumulative effects from adoption of new accounting standards | 0 | ||
Other comprehensive income (loss) before reclassification | 0 | 0 | (1,728) |
Amounts reclassified from accumulated other comprehensive income | 76 | 363 | 263 |
Other comprehensive income (loss) | 76 | 363 | (1,465) |
Ending balance | (1,026) | (1,102) | (1,465) |
AOCI Attributable to Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (884) | (3,809) | 6,252 |
Transfer of HTM securities to AFS securities | 0 | ||
Cumulative effects from adoption of new accounting standards | (46) | ||
Other comprehensive income (loss) before reclassification | (9,624) | ||
Amounts reclassified from accumulated other comprehensive income | 281 | ||
Other comprehensive income (loss) | (9,343) | 2,925 | (10,061) |
Ending balance | $ (10,273) | $ (884) | $ (3,809) |
REGULATORY MATTERS AND CAPITAL (Schedule of Bank Capital and Ratio) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 capital to risk weighted assets, actual amount | $ 1,106,871 | $ 737,204 |
Common Equity Tier 1 capital to risk weighted assets, actual ratio | 9.93% | 9.04% |
Common Equity Tier 1 capital to risk weighted assets, required for capital adequacy purposes, amount | $ 501,608 | $ 367,073 |
Common Equity Tier 1 capital to risk weighted assets, required for capital adequacy purposes, ratio | 4.50% | 4.50% |
Tier 1 capital to risk weighted assets, actual amount | $ 1,236,709 | $ 826,979 |
Tier 1 capital to risk weighted assets, actual ratio | 11.09% | 10.14% |
Tier 1 capital to risk weighted assets, required for capital adequacy purposes, amount | $ 668,817 | $ 489,428 |
Tier 1 capital ratio of risk-weighted assets | 6.00% | 6.00% |
Total capital to risk weighted assets, actual amount | $ 1,435,711 | $ 1,013,788 |
Total capital to risk weighted assets, actual ratio | 12.88% | 12.43% |
Total capital to risk weighted assets, Required for Capital adequacy purposes, amount | $ 891,753 | $ 652,573 |
Total capital to risk weighted assets, required for capital adequacy purposes, ratio | 8.00% | 8.00% |
Tier 1 capital to average adjusted assets, actual amount | $ 1,236,709 | $ 826,979 |
Tier 1 capital to average adjusted assets, actual ratio | 9.71% | 9.42% |
Tier 1 capital to average adjusted assets, required for capital adequacy purposes, amount | $ 509,678 | $ 351,230 |
Tier 1 capital to average adjusted assets, required for capital adequacy purposes, ratio | 4.00% | 4.00% |
Union Bank & Trust | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 capital to risk weighted assets, actual amount | $ 1,378,039 | $ 947,432 |
Common Equity Tier 1 capital to risk weighted assets, actual ratio | 12.40% | 11.66% |
Common Equity Tier 1 capital to risk weighted assets, required for capital adequacy purposes, amount | $ 500,224 | $ 365,616 |
Common Equity Tier 1 capital to risk weighted assets, required for capital adequacy purposes, ratio | 4.50% | 4.50% |
Common Equity Tier 1 capital to risk weighted assets, required in order to be well capitalized under PCA, amount | $ 722,546 | $ 528,111 |
Common Equity Tier 1 capital to risk weighted assets, required in order to be well capitalized under PCA, ratio | 6.50% | 6.50% |
Tier 1 capital to risk weighted assets, actual amount | $ 1,378,039 | $ 947,432 |
Tier 1 capital to risk weighted assets, actual ratio | 12.40% | 11.66% |
Tier 1 capital to risk weighted assets, required for capital adequacy purposes, amount | $ 666,965 | $ 487,488 |
Tier 1 capital ratio of risk-weighted assets | 6.00% | 6.00% |
Tier 1 capital to risk weighted assets, required in order to be well capitalized under PCA, amount | $ 889,287 | $ 649,983 |
Tier 1 capital to risk weighted assets, required in order to be well capitalized under PCA, ratio | 8.00% | 8.00% |
Total capital to risk weighted assets, actual amount | $ 1,419,984 | $ 986,040 |
Total capital to risk weighted assets, actual ratio | 12.77% | 12.14% |
Total capital to risk weighted assets, Required for Capital adequacy purposes, amount | $ 889,289 | $ 649,983 |
Total capital to risk weighted assets, required for capital adequacy purposes, ratio | 8.00% | 8.00% |
Total capital to risk weighted assets, required in order to be well capitalized under PCA, amount | $ 1,111,612 | $ 812,478 |
Total capital to risk weighted assets, required in order to be well capitalized under PCA, ratio | 10.00% | 10.00% |
Tier 1 capital to average adjusted assets, actual amount | $ 1,378,039 | $ 947,432 |
Tier 1 capital to average adjusted assets, actual ratio | 10.84% | 10.82% |
Tier 1 capital to average adjusted assets, required for capital adequacy purposes, amount | $ 508,412 | $ 350,126 |
Tier 1 capital to average adjusted assets, required for capital adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 capital to average adjusted assets, required in order to be well capitalized under PCA, amount | $ 635,515 | $ 437,657 |
Tier 1 capital to average adjusted assets, required in order to be well capitalized under PCA, ratio | 5.00% | 5.00% |
FAIR VALUE MEASUREMENTS (Narrative) (Details) participant in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018
USD ($)
participant
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Weighted average pull through rate | 80.00% | ||
Minimum number of market participants | participant | 4 | ||
Level 3 Fair value measurements weighted average related to impaired loans | 5.30% | 3.00% | |
Level 3 fair value measurements weighted average related to other real estate owned | 3.70% | 22.50% | |
Total valuation expenses related to foreclosed properties | $ 1,300,000 | $ 1,600,000 | $ 1,000,000 |
Total valuation expenses related to former bank premises | 0 | 339,000 | $ 0 |
Loans held for sale | 0 | $ 40,662,000 | |
Interest Rate Lock Commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, amount | $ 0 |
FAIR VALUE MEASUREMENTS (Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
ASSETS | ||
Securities available for sale, at fair value | $ 1,774,821,000 | $ 974,222,000 |
Loans held for sale | 0 | 40,662,000 |
Cash flow hedges | 49,000 | |
Fair value hedges | 1,872,000 | 1,598,000 |
Best efforts forward delivery commitments | 12,000 | |
LIABILITIES | ||
Interest rate swap | 19,426,000 | 1,350,000 |
Cash flow hedges | 4,786,000 | 8,005,000 |
Fair value hedges | 1,684,000 | 76,000 |
Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Loans held for sale | 0 | |
Cash flow hedges | 0 | |
Fair value hedges | 0 | 0 |
Best efforts forward delivery commitments | 0 | |
LIABILITIES | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Securities available for sale, at fair value | 1,774,821,000 | 974,222,000 |
Loans held for sale | 40,662,000 | |
Cash flow hedges | 49,000 | |
Fair value hedges | 1,872,000 | 1,598,000 |
Best efforts forward delivery commitments | 0 | |
LIABILITIES | ||
Interest rate swap | 19,426,000 | 1,350,000 |
Cash flow hedges | 4,786,000 | 8,005,000 |
Fair value hedges | 1,684,000 | 76,000 |
Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Loans held for sale | 0 | |
Cash flow hedges | 0 | |
Fair value hedges | 0 | 0 |
Best efforts forward delivery commitments | 12,000 | |
LIABILITIES | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Recurring | ||
ASSETS | ||
Loans held for sale | 40,662,000 | |
Cash flow hedges | 49,000 | |
Fair value hedges | 1,872,000 | 1,598,000 |
Best efforts forward delivery commitments | 12,000 | |
LIABILITIES | ||
Interest rate swap | 19,426,000 | 1,350,000 |
Cash flow hedges | 4,786,000 | 8,005,000 |
Fair value hedges | 1,684,000 | 76,000 |
Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Loans held for sale | 0 | |
Cash flow hedges | 0 | |
Fair value hedges | 0 | 0 |
Best efforts forward delivery commitments | 0 | |
LIABILITIES | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Recurring | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Loans held for sale | 40,662,000 | |
Cash flow hedges | 49,000 | |
Fair value hedges | 1,872,000 | 1,598,000 |
Best efforts forward delivery commitments | 0 | |
LIABILITIES | ||
Interest rate swap | 19,426,000 | 1,350,000 |
Cash flow hedges | 4,786,000 | 8,005,000 |
Fair value hedges | 1,684,000 | 76,000 |
Recurring | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Loans held for sale | 0 | |
Cash flow hedges | 0 | |
Fair value hedges | 0 | 0 |
Best efforts forward delivery commitments | 12,000 | |
LIABILITIES | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Obligations of states and political subdivisions | ||
ASSETS | ||
Securities available for sale, at fair value | 468,491,000 | 301,824,000 |
Obligations of states and political subdivisions | Recurring | ||
ASSETS | ||
Securities available for sale, at fair value | 468,491,000 | 301,824,000 |
Obligations of states and political subdivisions | Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Obligations of states and political subdivisions | Recurring | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Securities available for sale, at fair value | 468,491,000 | 301,824,000 |
Obligations of states and political subdivisions | Recurring | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Corporate bonds | ||
ASSETS | ||
Securities available for sale, at fair value | 167,696,000 | 113,880,000 |
Corporate bonds | Recurring | ||
ASSETS | ||
Securities available for sale, at fair value | 167,696,000 | 113,880,000 |
Corporate bonds | Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Corporate bonds | Recurring | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Securities available for sale, at fair value | 167,696,000 | 113,880,000 |
Corporate bonds | Recurring | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Mortgage-backed securities | ||
ASSETS | ||
Securities available for sale, at fair value | 1,129,865,000 | 548,858,000 |
Mortgage-backed securities | Recurring | ||
ASSETS | ||
Securities available for sale, at fair value | 1,129,865,000 | 548,858,000 |
Mortgage-backed securities | Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Mortgage-backed securities | Recurring | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Securities available for sale, at fair value | 1,129,865,000 | 548,858,000 |
Mortgage-backed securities | Recurring | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Other securities | ||
ASSETS | ||
Securities available for sale, at fair value | 8,769,000 | 9,660,000 |
Other securities | Recurring | ||
ASSETS | ||
Securities available for sale, at fair value | 8,769,000 | 9,660,000 |
Other securities | Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Other securities | Recurring | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Securities available for sale, at fair value | 8,769,000 | 9,660,000 |
Other securities | Recurring | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Interest Rate Swap | ||
ASSETS | ||
Interest rate derivatives | 19,426,000 | 1,350,000 |
Interest Rate Swap | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Swap | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Interest rate derivatives | 19,426,000 | 1,350,000 |
Interest Rate Swap | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Swap | Recurring | ||
ASSETS | ||
Interest rate derivatives | 19,426,000 | 1,350,000 |
Interest Rate Swap | Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Swap | Recurring | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Interest rate derivatives | 19,426,000 | 1,350,000 |
Interest Rate Swap | Recurring | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Interest rate derivatives | $ 0 | 0 |
Interest Rate Lock Commitments | ||
ASSETS | ||
Interest rate derivatives | 559,000 | |
Interest Rate Lock Commitments | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Interest rate derivatives | 0 | |
Interest Rate Lock Commitments | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Interest rate derivatives | 0 | |
Interest Rate Lock Commitments | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Interest rate derivatives | 559,000 | |
Interest Rate Lock Commitments | Recurring | ||
ASSETS | ||
Interest rate derivatives | 559,000 | |
Interest Rate Lock Commitments | Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Interest rate derivatives | 0 | |
Interest Rate Lock Commitments | Recurring | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Interest rate derivatives | 0 | |
Interest Rate Lock Commitments | Recurring | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Interest rate derivatives | $ 559,000 |
FAIR VALUE MEASUREMENTS (Schedule of Financial Assets Measured at Fair Value on Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Schedule of financial assets measured at fair value on nonrecurring basis | ||
Impaired loans | $ 3,734 | $ 3,229 |
Foreclosed properties | 6,722 | 5,253 |
Former bank premises | 2,090 | 1,383 |
Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Schedule of financial assets measured at fair value on nonrecurring basis | ||
Impaired loans | 0 | 0 |
Foreclosed properties | 0 | 0 |
Former bank premises | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
Schedule of financial assets measured at fair value on nonrecurring basis | ||
Impaired loans | 0 | 0 |
Foreclosed properties | 0 | 0 |
Former bank premises | 0 | 0 |
Significant Unobservable Inputs Level 3 | ||
Schedule of financial assets measured at fair value on nonrecurring basis | ||
Impaired loans | 3,734 | 3,229 |
Foreclosed properties | 6,722 | 5,253 |
Former bank premises | $ 2,090 | $ 1,383 |
FAIR VALUE MEASUREMENTS (Carrying Values and Estimated Fair Values of the Company's Financial Instruments) (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
ASSETS | ||
Cash and cash equivalents | $ 261,199,000 | $ 199,373,000 |
Securities available for sale, at fair value | 1,774,821,000 | 974,222,000 |
HTM securities | 499,501,000 | 203,483,000 |
Restricted stock | 124,602,000 | 75,283,000 |
Loans held for sale | 0 | 40,662,000 |
Net loans | 9,534,717,000 | 7,117,593,000 |
Derivatives: | ||
Cash flow hedges | 49,000 | |
Fair value hedges | 1,872,000 | 1,598,000 |
Best efforts forward delivery commitments | 12,000 | |
Accrued interest receivable | 46,062,000 | 26,427,000 |
Bank owned life insurance | 263,034,000 | 182,854,000 |
LIABILITIES | ||
Deposits | 9,989,788,000 | 6,977,845,000 |
Borrowings | 1,742,038,000 | 1,198,645,000 |
Accrued interest payable | 5,284,000 | 2,538,000 |
Interest rate swap | 19,426,000 | 1,350,000 |
Cash flow hedges | 4,786,000 | 8,005,000 |
Fair value hedges | 1,684,000 | 76,000 |
Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Cash and cash equivalents | 261,199,000 | 199,373,000 |
Securities available for sale, at fair value | 0 | 0 |
HTM securities | 0 | 0 |
Restricted stock | 0 | 0 |
Loans held for sale | 0 | |
Net loans | 0 | 0 |
Derivatives: | ||
Cash flow hedges | 0 | |
Fair value hedges | 0 | 0 |
Best efforts forward delivery commitments | 0 | |
Accrued interest receivable | 0 | 0 |
Bank owned life insurance | 0 | 0 |
LIABILITIES | ||
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale, at fair value | 1,774,821,000 | 974,222,000 |
HTM securities | 499,501,000 | 203,483,000 |
Restricted stock | 124,602,000 | 75,283,000 |
Loans held for sale | 40,662,000 | |
Net loans | 0 | 0 |
Derivatives: | ||
Cash flow hedges | 49,000 | |
Fair value hedges | 1,872,000 | 1,598,000 |
Best efforts forward delivery commitments | 0 | |
Accrued interest receivable | 46,062,000 | 26,427,000 |
Bank owned life insurance | 263,034,000 | 182,854,000 |
LIABILITIES | ||
Deposits | 9,989,788,000 | 6,977,845,000 |
Borrowings | 1,742,038,000 | 1,198,645,000 |
Accrued interest payable | 5,284,000 | 2,538,000 |
Interest rate swap | 19,426,000 | 1,350,000 |
Cash flow hedges | 4,786,000 | 8,005,000 |
Fair value hedges | 1,684,000 | 76,000 |
Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale, at fair value | 0 | 0 |
HTM securities | 0 | 0 |
Restricted stock | 0 | 0 |
Loans held for sale | 0 | |
Net loans | 9,534,717,000 | 7,117,593,000 |
Derivatives: | ||
Cash flow hedges | 0 | |
Fair value hedges | 0 | 0 |
Best efforts forward delivery commitments | 12,000 | |
Accrued interest receivable | 0 | 0 |
Bank owned life insurance | 0 | 0 |
LIABILITIES | ||
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Interest Rate Swap | ||
Derivatives: | ||
Interest rate derivatives | 19,426,000 | 1,350,000 |
Interest Rate Swap | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Derivatives: | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Swap | Significant Other Observable Inputs Level 2 | ||
Derivatives: | ||
Interest rate derivatives | 19,426,000 | 1,350,000 |
Interest Rate Swap | Significant Unobservable Inputs Level 3 | ||
Derivatives: | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Lock Commitments | ||
Derivatives: | ||
Interest rate derivatives | 559,000 | |
Interest Rate Lock Commitments | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Derivatives: | ||
Interest rate derivatives | 0 | |
Interest Rate Lock Commitments | Significant Other Observable Inputs Level 2 | ||
Derivatives: | ||
Interest rate derivatives | 0 | |
Interest Rate Lock Commitments | Significant Unobservable Inputs Level 3 | ||
Derivatives: | ||
Interest rate derivatives | 559,000 | |
Carrying Value | ||
ASSETS | ||
Cash and cash equivalents | 261,199,000 | 199,373,000 |
Securities available for sale, at fair value | 1,774,821,000 | 974,222,000 |
HTM securities | 492,272,000 | 199,639,000 |
Restricted stock | 124,602,000 | 75,283,000 |
Loans held for sale | 40,662,000 | |
Net loans | 9,675,162,000 | 7,103,344,000 |
Derivatives: | ||
Cash flow hedges | 49,000 | |
Fair value hedges | 1,872,000 | 1,598,000 |
Best efforts forward delivery commitments | 12,000 | |
Accrued interest receivable | 46,062,000 | 26,427,000 |
Bank owned life insurance | 263,034,000 | 182,854,000 |
LIABILITIES | ||
Deposits | 9,970,960,000 | 6,991,718,000 |
Borrowings | 1,756,278,000 | 1,219,414,000 |
Accrued interest payable | 5,284,000 | 2,538,000 |
Interest rate swap | 19,426,000 | 1,350,000 |
Cash flow hedges | 4,786,000 | 8,005,000 |
Fair value hedges | 1,684,000 | 76,000 |
Carrying Value | Interest Rate Swap | ||
Derivatives: | ||
Interest rate derivatives | $ 19,426,000 | 1,350,000 |
Carrying Value | Interest Rate Lock Commitments | ||
Derivatives: | ||
Interest rate derivatives | $ 559,000 |
REVENUE (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Gains (losses) on securities transactions, net | [1] | $ 383 | $ 800 | $ 205 | |
Bank owned life insurance income | 7,198 | 6,144 | 5,513 | ||
Loan-related interest rate swap fees | 3,554 | 3,051 | 4,254 | ||
Gain on Shore Premier sale | 19,966 | 0 | 0 | ||
Other operating income | 7,145 | 2,772 | 3,007 | ||
Total noninterest income | 104,241 | 62,429 | 59,849 | ||
Noninterest income in Scope of Topic 606 | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Interchange fees, net | 18,803 | 14,974 | 14,058 | ||
Other operating income | 4,400 | 2,300 | 2,300 | ||
Noninterest income in Scope of Topic 606 | Deposit Service Charges | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Overdraft fees, net | 21,052 | 15,788 | 15,082 | ||
Maintenance fees & other | 4,387 | 3,062 | 3,086 | ||
Noninterest income in Scope of Topic 606 | Fiduciary and Asset Management Fees | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Trust asset management fees | 5,536 | 5,128 | 4,812 | ||
Registered advisor management fees, net | 6,589 | 2,692 | 1,554 | ||
Brokerage management fees, net | 4,025 | 3,425 | 3,833 | ||
Other service charges, commissions and fees | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Other service charges and fees | 5,603 | 4,593 | 4,445 | ||
Other service charges, commissions and fees | Noninterest income in Scope of Topic 606 | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Other service charges and fees | $ 5,603 | $ 4,593 | $ 4,445 | ||
|
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Narrative) (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Apr. 20, 2015 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Deferred compensation plans obligation to Board of Directors | $ 11,800,000 | $ 11,100,000 | ||
Maximum term of stock options | 10 years | |||
Stock options granted | 0 | 0 | ||
Stock options term from the grant date | 2 years 6 months 14 days | |||
Number of stock option awards exercised | 72,743 | 63,476 | 88,409 | |
Intrinsic value of stock options exercised | $ 1,900,000 | $ 1,200,000 | $ 1,200,000 | |
Fair value of stock options exercised | 2,800,000 | 2,200,000 | 2,600,000 | |
Cash received from the exercise of stock options | 983,000 | 1,000,000 | 1,400,000 | |
Tax benefit from exercise of equity-based awards | $ 390,000 | 370,000 | 381,000 | |
Fair value of stock options vested | 47,000 | 159,000 | ||
Restricted stock vesting percentage | 50.00% | |||
Intrinsic value of stock options outstanding | $ 656,238 | $ 2,700,000 | $ 3,900,000 | |
Unamortized compensation costs | $ 11,265,000 | |||
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Hours of service required for eligibility under plan | 1000 hours | |||
Stock and Incentive Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of shares authorized to be issued, maximum | 2,500,000 | |||
Number of shares available for future issuance | 1,300,663 | |||
2011 Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of shares authorized to be issued, maximum | 1,000,000 | |||
Restricted Stock | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Vesting period of restricted stock awards and performance stock units | 3 years | |||
Restricted Stock | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Vesting period of restricted stock awards and performance stock units | 4 years | |||
1% through 3% | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of employer's match for 401(k) plan | 100.00% | |||
1% through 3% | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of employee's gross pay for 401(k) plan | 1.00% | |||
1% through 3% | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of employee's gross pay for 401(k) plan | 3.00% | |||
4% through 5% | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of employer's match for 401(k) plan | 50.00% | |||
4% through 5% | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of employee's gross pay for 401(k) plan | 4.00% | |||
4% through 5% | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of employee's gross pay for 401(k) plan | 5.00% |
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Payment Made for Employee Benefit Plans) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Employee Benefits and Share-based Compensation, Noncash [Abstract] | |||
401(K) Plan | $ 4,592 | $ 3,505 | $ 3,263 |
ESOP | 1,005 | 1,255 | 1,425 |
Cash | 1,509 | 1,461 | 1,496 |
Total | $ 7,106 | $ 6,221 | $ 6,184 |
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Schedule of Recognized Stock-Based Compensation Expense) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Employee Benefits and Share-based Compensation, Noncash [Abstract] | |||
Stock-based compensation expense | $ 6,132 | $ 4,648 | $ 3,270 |
Reduction of income tax expense | $ 1,287 | $ 1,467 | $ 1,104 |
Per share compensation cost | $ 0.07 | $ 0.06 | $ 0.05 |
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Summary of Stock Option Activity) (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Stock Options (shares) | |||
Number of Stock Options, Outstanding beginning balance | 121,743 | ||
Number of Stock Options, Granted | 0 | ||
Number of Stock Options, Exercised | (72,743) | (63,476) | (88,409) |
Number of Stock Options, Forfeited | 0 | ||
Number of Stock Options, Expired | (1,415) | ||
Number of Stock Options, Outstanding ending balance | 47,585 | 121,743 | |
Number of Stock Options, Exercisable | 47,585 | ||
Weighted Average Exercise Price | |||
Weighted Average Exercise Price, Outstanding, beginning balance (in dollars per share) | $ 13.93 | ||
Weighted Average Exercise Price, Granted (in dollars per share) | 0.00 | ||
Weighted Average Exercise Price, Exercised (in dollars per share) | 13.51 | ||
Weighted Average Exercise Price, Forfeited (in dollars per share) | 0.00 | ||
Weighted Average Exercise Price, Expired (in dollars per share) | 18.10 | ||
Weighted Average Exercise Price, Exercisable (in dollars per share) | 14.44 | ||
Weighted Average Exercise Price, Outstanding, beginning balance (in dollars per share) | $ 14.44 | $ 13.93 | |
Weighted Average Remaining Contractual Life, Outstanding | 2 years 6 months 14 days | ||
Weighted Average Remaining Contractual Life, Exercisable | 2 years 6 months 14 days | ||
Aggregate Intrinsic Value, Outstanding | $ 656,238 | $ 2,700,000 | $ 3,900,000 |
Aggregate Intrinsic Value, Exercisable | $ 656,238 |
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Summary of Nonvested Stock Activity) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2018
$ / shares
shares
| |
Restricted Stock | |
Number of Shares of RSAs | |
Beginning balance (in shares) | shares | 326,736 |
Granted (in shares) | shares | 212,749 |
Net settle for taxes (in shares) | shares | (38,700) |
Vested (in shares) | shares | (113,023) |
Forfeited (in shares) | shares | (12,348) |
Ending balance (in shares) | shares | 375,414 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ / shares | $ 27.68 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 37.36 |
Weighted Average Grant Date Fair Value, Net settle for taxes (in dollars per share) | $ / shares | 40.23 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares | 29.82 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares | 30.57 |
Weighted Average Grant Date Fair Value, Ending balance (in dollars per share) | $ / shares | $ 32.41 |
Performance Stock | |
Number of Shares of RSAs | |
Beginning balance (in shares) | shares | 134,350 |
Granted (in shares) | shares | 61,310 |
Net settle for taxes (in shares) | shares | (16,342) |
Vested (in shares) | shares | (26,977) |
Forfeited (in shares) | shares | (2,294) |
Ending balance (in shares) | shares | 150,047 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ / shares | $ 24.98 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 34.28 |
Weighted Average Grant Date Fair Value, Net settle for taxes (in dollars per share) | $ / shares | 38.64 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares | 14.32 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares | 37.19 |
Weighted Average Grant Date Fair Value, Ending balance (in dollars per share) | $ / shares | $ 31.67 |
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Estimated Stock Option on the Date of Grant Fair Value) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Estimated stock option on the date of grant fair value | |||
Dividend yield | 2.25% | 2.15% | 3.36% |
Expected life in years | 2 years 10 months 9 days | 2 years 10 months 6 days | 2 years 10 months 6 days |
Expected volatility | 23.47% | 23.35% | 22.16% |
Risk-free interest rate | 2.38% | 1.40% | 0.83% |
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Estimated Unamortized Compensation Expense Recognized in Future) (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Estimated unamortized compensation expense recognized in future | |
2019 | $ 5,911 |
2020 | 3,756 |
2021 | 1,371 |
2022 | 227 |
Total | 11,265 |
Restricted Stock | |
Estimated unamortized compensation expense recognized in future | |
2019 | 4,644 |
2020 | 3,047 |
2021 | 1,291 |
2022 | 227 |
Total | 9,209 |
Performance Stock | |
Estimated unamortized compensation expense recognized in future | |
2019 | 1,267 |
2020 | 709 |
2021 | 80 |
2022 | 0 |
Total | $ 2,056 |
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 22, 2017 |
Dec. 21, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Tax Examination [Line Items] | |||||
Federal statutory income tax rate, percent | 21.00% | 35.00% | |||
Tax expense due to the tax act | $ 0 | $ 6,105 | $ 0 | ||
Effective income taxes | 16.70% | 31.20% | 25.50% | ||
Tax credits | $ 1,100 | $ 858 | $ 2,000 | ||
Federal | |||||
Income Tax Examination [Line Items] | |||||
Operating loss carryforwards | 272,300 | ||||
State | |||||
Income Tax Examination [Line Items] | |||||
Operating loss carryforwards | 267,300 | ||||
Pre-2018 | |||||
Income Tax Examination [Line Items] | |||||
Tax carryforward | 252,400 | ||||
Post-2018 | |||||
Income Tax Examination [Line Items] | |||||
Tax carryforward | $ 19,900 |
INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Deferred tax assets: | ||
Allowance for loan losses | $ 19,369 | $ 7,963 |
Benefit plans | 3,925 | 2,511 |
Acquisition accounting | 11,788 | 4,911 |
Stock grants | 894 | 328 |
OREO | 2,515 | 1,673 |
Securities available for sale | 1,577 | 0 |
Prime loan swap | 981 | 1,640 |
Investments in pass through entities | 915 | 646 |
Net operating losses | 66,037 | 3,624 |
Nonaccrual loans | 3,990 | 0 |
Other | 2,722 | 1,268 |
Total deferred tax assets | 114,713 | 24,564 |
Deferred tax liabilities: | ||
Acquisition accounting | 13,053 | 5,923 |
Premises and equipment | 3,877 | 3,600 |
Securities available for sale | 25 | 1,479 |
Other | 583 | 529 |
Total deferred tax liabilities | 17,538 | 11,531 |
Net deferred tax asset | $ 97,175 | $ 13,033 |
INCOME TAXES (Provision for Income Taxes Charged to Operations) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Current tax expense | $ 12,114 | $ 27,255 | $ 25,578 |
Deferred tax expense (benefit) | 17,902 | 5,535 | 366 |
Income tax expense | $ 30,016 | $ 32,790 | $ 25,944 |
INCOME TAXES (Schedule of Income Tax Expense, Difference in Income Tax Rate to Pretax Income) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Computed expected tax expense | $ 37,680 | $ 36,738 | $ 35,645 |
Tax-exempt interest income, net | (5,188) | (6,112) | (6,087) |
Valuation allowance adjustment | 0 | (2,982) | 0 |
Impact of the Tax Act | 0 | 6,105 | 0 |
Other, net | (2,476) | (959) | (3,614) |
Income tax expense | $ 30,016 | $ 32,790 | $ 25,944 |
EARNINGS PER SHARE (Reconcilement of the Denominators of the Basic and Diluted EPS Computations) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Net Income: | |||
Income from continuing operations | $ 149,413 | $ 72,176 | $ 75,898 |
Income (loss) from discontinued operations | (3,165) | 747 | 1,578 |
Net income available to common stockholders | $ 146,248 | $ 72,923 | $ 77,476 |
Weighted average shares outstanding, basic | 65,859,165 | 43,698,897 | 43,784,193 |
Dilutive effect of stock awards and warrants | 50,000 | 81,000 | 106,000 |
Weighted average shares outstanding, diluted | 65,908,573 | 43,779,744 | 43,890,271 |
Basic EPS: | |||
Earnings per share from continuing operations, basic (usd per share) | $ 2.27 | $ 1.65 | $ 1.73 |
Earnings per share from discontinued operations, basic (usd per share) | (0.05) | 0.02 | 0.04 |
Earnings per share available to common shareholders, basic (usd per share) | 2.22 | 1.67 | 1.77 |
Diluted EPS: | |||
Earnings per share from continuing operations, diluted (usd per share) | 2.27 | 1.65 | 1.73 |
Earnings per share from discontinued operations, diluted (usd per share) | (0.05) | 0.02 | 0.04 |
Earnings per share available to common shareholders, diluted (usd per share) | $ 2.22 | $ 1.67 | $ 1.77 |
SEGMENT REPORTING & DISCONTINUED OPERATIONS (Narrative) (Details) - USD ($) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Segment Reporting [Abstract] | ||
Assets of discontinued operations | $ 1,479,000 | $ 44,658,000 |
Liabilities of discontinued operations | 1,687,000 | 3,710,000 |
Loans held for sale | $ 0 | $ 40,662,000 |
SEGMENT REPORTING & DISCONTINUED OPERATIONS (Information About Reportable Segments and Reconciliation) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Information about reportable segments and reconciliation | |||||
Net interest income | $ 426,691 | $ 279,007 | $ 263,966 | ||
Provision for credit losses | 13,736 | 10,802 | 8,883 | ||
Net interest income after provision for credit losses | 412,955 | 268,205 | 255,083 | ||
Noninterest Income | 104,241 | 62,429 | 59,849 | ||
Noninterest expenses | 337,767 | 225,668 | 213,090 | ||
Income before income taxes | 179,429 | 104,966 | 101,842 | ||
Income tax expense | 30,016 | 32,790 | 25,944 | ||
Net income | [1] | 146,248 | 72,923 | 77,476 | |
Total assets | 13,765,599 | 9,315,179 | |||
Discontinued Operations | Mortgage | |||||
Information about reportable segments and reconciliation | |||||
Net interest income | 850 | 1,150 | 1,184 | ||
Provision for credit losses | (185) | (46) | 217 | ||
Net interest income after provision for credit losses | 1,035 | 1,196 | 967 | ||
Noninterest Income | 3,882 | 9,245 | 11,058 | ||
Noninterest expenses | 9,197 | 9,097 | 9,613 | ||
Income before income taxes | (4,280) | 1,344 | 2,412 | ||
Income tax expense | (1,115) | 597 | 834 | ||
Net income | $ (3,165) | $ 747 | $ 1,578 | ||
|
PARENT COMPANY FINANCIAL INFORMATION (Narrative) (Details) - Parent Company $ in Millions |
Dec. 31, 2018
USD ($)
|
---|---|
Aggregate amount of unrestricted funds | $ 220.5 |
Aggregate amount of unrestricted funds percentage | 11.46% |
PARENT COMPANY FINANCIAL INFORMATION (Financial Information for the Parent Company - Balance Sheets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
ASSETS | ||||
Cash | $ 261,199 | $ 199,373 | $ 179,237 | $ 142,660 |
Premises and equipment, net | 146,967 | 119,604 | ||
Other assets | 250,210 | 102,871 | ||
Total assets | 13,765,599 | 9,315,179 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Short-term borrowings | 1,087,797 | 794,152 | ||
Long-term borrowings | 668,481 | 425,262 | ||
Other liabilities | 112,093 | 54,008 | ||
Total liabilities | 11,841,018 | 8,268,850 | ||
Total stockholders' equity | 1,924,581 | 1,046,329 | 1,001,032 | 995,367 |
Total liabilities and stockholders' equity | 13,765,599 | 9,315,179 | ||
Parent Company | ||||
ASSETS | ||||
Cash | 3,681 | 2,611 | $ 10,681 | $ 10,386 |
Premises and equipment, net | 10,637 | 11,061 | ||
Other assets | 13,386 | 15,036 | ||
Investment in subsidiaries | 2,202,530 | 1,263,545 | ||
Total assets | 2,230,234 | 1,292,253 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Short-term borrowings | 5,000 | 0 | ||
Long-term borrowings | 157,057 | 148,201 | ||
Trust preferred capital notes | 134,342 | 86,819 | ||
Other liabilities | 9,254 | 10,904 | ||
Total liabilities | 305,653 | 245,924 | ||
Total stockholders' equity | 1,924,581 | 1,046,329 | ||
Total liabilities and stockholders' equity | $ 2,230,234 | $ 1,292,253 |
PARENT COMPANY FINANCIAL INFORMATION (Financial Information for the Parent Company - Statements of Income and Comprehensive Income) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Income: | |||||
Interest and dividend income | $ 528,788 | $ 329,044 | $ 293,736 | ||
Other operating income | 7,145 | 2,772 | 3,007 | ||
Expenses: | |||||
Interest expense | 102,097 | 50,037 | 29,770 | ||
Other expenses | 7,410 | 5,240 | 6,869 | ||
Income before income taxes | 179,429 | 104,966 | 101,842 | ||
Income tax benefit | 30,016 | 32,790 | 25,944 | ||
Net income | [1] | 146,248 | 72,923 | 77,476 | |
Parent Company | |||||
Income: | |||||
Interest and dividend income | 0 | 3 | 23 | ||
Dividends received from subsidiaries | 50,750 | 33,350 | 51,439 | ||
Other operating income | 2,719 | 1,308 | 1,314 | ||
Total income | 53,469 | 34,661 | 52,776 | ||
Expenses: | |||||
Interest expense | 15,253 | 11,423 | 5,656 | ||
Other expenses | 13,782 | 7,130 | 5,214 | ||
Total expenses | 29,035 | 18,553 | 10,870 | ||
Income before income taxes | 24,434 | 16,108 | 41,906 | ||
Income tax benefit | (6,176) | (9,169) | (3,586) | ||
Equity in undistributed net income from subsidiaries | 115,638 | 47,646 | 31,984 | ||
Net income | 146,248 | 72,923 | 77,476 | ||
Comprehensive income | $ 136,905 | $ 75,848 | $ 67,415 | ||
|
PARENT COMPANY FINANCIAL INFORMATION (Financial Information for the Parent Company - Statements of Cash Flows) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||||||
Operating activities (1): | |||||||||||
Net income | [1] | $ 146,248 | $ 72,923 | $ 77,476 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation of premises and equipment | [1] | 13,725 | 11,183 | 10,215 | |||||||
Amortization (accretion) related to acquisition, net | [1] | (6,711) | (866) | 1,534 | |||||||
Issuance of common stock for services | [1] | 914 | 724 | 533 | |||||||
Net (increase) decrease in other assets | [1] | (26,606) | (5,785) | (14,810) | |||||||
Net increase in other liabilities | [1] | 24,005 | 5,352 | (1,898) | |||||||
Net cash and cash equivalents provided by operating activities | [1] | 216,765 | 110,333 | 93,843 | |||||||
Investing activities: | |||||||||||
Net increase in premises and equipment | 1,698 | (9,261) | (6,339) | ||||||||
Cash received in acquisitions | 174,496 | 5,038 | 207 | ||||||||
Net cash and cash equivalents provided by (used in) investing activities | (770,039) | (885,753) | (715,117) | ||||||||
Financing activities: | |||||||||||
Repayments of short-term borrowings | 58,645 | 217,371 | 187,804 | ||||||||
Repayments of long-term borrowings | (40,000) | (10,000) | (57,500) | ||||||||
Proceeds from issuance of long-term borrowings | 225,000 | 20,000 | 178,000 | ||||||||
Cash dividends paid | (58,001) | (35,393) | (33,672) | ||||||||
Cancellation of warrants | 1,530 | ||||||||||
Vesting of restricted stock, including tax effects | (2,908) | (1,567) | (586) | ||||||||
Net cash and cash equivalents provided by (used in) financing activities | 615,100 | 795,556 | 657,851 | ||||||||
Net increase (decrease) in cash and cash equivalents | 61,826 | 20,136 | 36,577 | ||||||||
Cash and cash equivalents at beginning of the period | 199,373 | 179,237 | 142,660 | ||||||||
Cash and cash equivalents at end of the period | 261,199 | 199,373 | 179,237 | ||||||||
Supplemental schedule of noncash investing and financing activities | |||||||||||
Issuance of common stock in regard to acquisition | 794,809 | [2] | 0 | 453 | |||||||
Assets acquired | 3,253,328 | 293 | 4,668 | ||||||||
Liabilities assumed | [3] | 2,873,718 | 5,437 | 4,807 | |||||||
Parent Company | |||||||||||
Operating activities (1): | |||||||||||
Net income | 146,248 | 72,923 | 77,476 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed net income of subsidiaries | (115,638) | (47,646) | (31,984) | ||||||||
Depreciation of premises and equipment | 424 | 439 | 438 | ||||||||
Amortization (accretion) related to acquisition, net | 636 | 260 | 247 | ||||||||
Gain on sale of investment | (1,416) | 0 | 0 | ||||||||
Issuance of common stock for services | 914 | 724 | 533 | ||||||||
Net (increase) decrease in other assets | (584) | (4,167) | (2,402) | ||||||||
Net increase in other liabilities | (4,159) | 5,283 | 5,533 | ||||||||
Net cash and cash equivalents provided by operating activities | 26,425 | 27,816 | 49,841 | ||||||||
Investing activities: | |||||||||||
Net increase in premises and equipment | 0 | (35) | (33) | ||||||||
Proceeds from sale of investment | 3,761 | 0 | 0 | ||||||||
Proceeds from (payments for) equity method investment | 0 | 72 | 0 | ||||||||
Payments for investments in and advances to subsidiaries | 0 | 0 | (125,000) | ||||||||
Repayment of investments in and advances to subsidiaries | 0 | 0 | 540 | ||||||||
Cash received in acquisitions | 25,976 | 0 | 0 | ||||||||
Net cash and cash equivalents provided by (used in) investing activities | 29,737 | 37 | (124,493) | ||||||||
Financing activities: | |||||||||||
Repayments of short-term borrowings | 5,000 | 0 | 0 | ||||||||
Repayments of long-term borrowings | 0 | 0 | (7,500) | ||||||||
Proceeds from issuance of long-term borrowings | 0 | 0 | 148,000 | ||||||||
Cash dividends paid | (58,001) | (35,393) | (33,672) | ||||||||
Cancellation of warrants | (1,530) | 0 | 0 | ||||||||
Issuance (repurchase) of common stock | 2,347 | 1,037 | (31,295) | ||||||||
Vesting of restricted stock, including tax effects | (2,908) | (1,567) | (586) | ||||||||
Net cash and cash equivalents provided by (used in) financing activities | (55,092) | (35,923) | 74,947 | ||||||||
Net increase (decrease) in cash and cash equivalents | 1,070 | (8,070) | 295 | ||||||||
Cash and cash equivalents at beginning of the period | 2,611 | 10,681 | 10,386 | ||||||||
Cash and cash equivalents at end of the period | 3,681 | 2,611 | 10,681 | ||||||||
Supplemental schedule of noncash investing and financing activities | |||||||||||
Issuance of common stock in regard to acquisition | 794,809 | 0 | 0 | ||||||||
Assets acquired | 859,176 | 0 | 0 | ||||||||
Liabilities assumed | $ 64,367 | $ 0 | $ 0 | ||||||||
|
SUBSEQUENT EVENTS (Details) - Access - Subsequent Event |
Feb. 01, 2019
shares
|
---|---|
Subsequent Event [Line Items] | |
Number of shares equivalent to each share of acquired entity | 0.75 |
Number of common shares issued | 15,842,026 |
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