|
|
|
ý
|
Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
|
¨
|
Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
|
|
|
Delaware
|
|
75-2679109
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification Number)
|
2000 McKinney Avenue, Suite 700, Dallas, Texas, U.S.A.
|
|
75201
|
(Address of principal executive officers)
|
|
(Zip Code)
|
|
Large Accelerated Filer
|
|
ý
|
|
Accelerated Filer
|
|
¨
|
|
|
|
|
|||
Non-Accelerated Filer
|
|
¨
|
|
Smaller Reporting Company
|
|
¨
|
|
|
||
|
|
|
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
||
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 6.
|
||
|
September 30,
2016 |
|
December 31,
2015 |
||||
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
117,345
|
|
|
$
|
109,496
|
|
Interest-bearing deposits
|
3,441,074
|
|
|
1,626,374
|
|
||
Federal funds sold and securities purchased under resale agreements
|
30,000
|
|
|
55,000
|
|
||
Securities, available-for-sale
|
26,356
|
|
|
29,992
|
|
||
Loans held for sale, at fair value
|
648,684
|
|
|
86,075
|
|
||
Loans held for investment, mortgage finance
|
4,961,159
|
|
|
4,966,276
|
|
||
Loans held for investment (net of unearned income)
|
12,662,394
|
|
|
11,745,674
|
|
||
Less: Allowance for loan losses
|
180,436
|
|
|
141,111
|
|
||
Loans held for investment, net
|
17,443,117
|
|
|
16,570,839
|
|
||
Mortgage servicing rights, net
|
15,462
|
|
|
423
|
|
||
Premises and equipment, net
|
20,604
|
|
|
23,561
|
|
||
Accrued interest receivable and other assets
|
454,116
|
|
|
382,101
|
|
||
Goodwill and intangible assets, net
|
19,630
|
|
|
19,960
|
|
||
Total assets
|
$
|
22,216,388
|
|
|
$
|
18,903,821
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest-bearing
|
$
|
8,789,740
|
|
|
$
|
6,386,911
|
|
Interest-bearing
|
9,355,383
|
|
|
8,697,708
|
|
||
Total deposits
|
18,145,123
|
|
|
15,084,619
|
|
||
Accrued interest payable
|
3,124
|
|
|
5,097
|
|
||
Other liabilities
|
196,579
|
|
|
153,433
|
|
||
Federal funds purchased and repurchase agreements
|
81,420
|
|
|
143,051
|
|
||
Other borrowings
|
1,670,000
|
|
|
1,500,000
|
|
||
Subordinated notes, net
|
280,954
|
|
|
280,682
|
|
||
Trust preferred subordinated debentures
|
113,406
|
|
|
113,406
|
|
||
Total liabilities
|
20,490,606
|
|
|
17,280,288
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock, $.01 par value, $1,000 liquidation value:
|
|
|
|
||||
Authorized shares – 10,000,000
|
|
|
|
||||
Issued shares – 6,000,000 shares issued at September 30, 2016 and December 31, 2015
|
150,000
|
|
|
150,000
|
|
||
Common stock, $.01 par value:
|
|
|
|
||||
Authorized shares – 100,000,000
|
|
|
|
||||
Issued shares – 46,009,912 and 45,874,224 at September 30, 2016 and December 31, 2015, respectively
|
460
|
|
|
459
|
|
||
Additional paid-in capital
|
717,452
|
|
|
714,546
|
|
||
Retained earnings
|
857,238
|
|
|
757,818
|
|
||
Treasury stock (shares at cost: 417 at September 30, 2016 and December 31, 2015)
|
(8
|
)
|
|
(8
|
)
|
||
Accumulated other comprehensive income, net of taxes
|
640
|
|
|
718
|
|
||
Total stockholders’ equity
|
1,725,782
|
|
|
1,623,533
|
|
||
Total liabilities and stockholders’ equity
|
$
|
22,216,388
|
|
|
$
|
18,903,821
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Interest income
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans
|
$
|
177,724
|
|
|
$
|
151,749
|
|
|
$
|
501,673
|
|
|
$
|
442,529
|
|
Securities
|
232
|
|
|
298
|
|
|
739
|
|
|
979
|
|
||||
Federal funds sold and securities purchased under resale agreements
|
455
|
|
|
193
|
|
|
1,209
|
|
|
427
|
|
||||
Deposits in other banks
|
4,081
|
|
|
1,616
|
|
|
11,116
|
|
|
4,203
|
|
||||
Total interest income
|
182,492
|
|
|
153,856
|
|
|
514,737
|
|
|
448,138
|
|
||||
Interest expense
|
|
|
|
|
|
|
|
||||||||
Deposits
|
8,950
|
|
|
6,240
|
|
|
26,743
|
|
|
17,510
|
|
||||
Federal funds purchased
|
126
|
|
|
56
|
|
|
362
|
|
|
217
|
|
||||
Repurchase agreements
|
3
|
|
|
6
|
|
|
8
|
|
|
14
|
|
||||
Other borrowings
|
1,730
|
|
|
672
|
|
|
4,257
|
|
|
1,590
|
|
||||
Subordinated notes
|
4,191
|
|
|
4,191
|
|
|
12,573
|
|
|
12,573
|
|
||||
Trust preferred subordinated debentures
|
753
|
|
|
643
|
|
|
2,203
|
|
|
1,892
|
|
||||
Total interest expense
|
15,753
|
|
|
11,808
|
|
|
46,146
|
|
|
33,796
|
|
||||
Net interest income
|
166,739
|
|
|
142,048
|
|
|
468,591
|
|
|
414,342
|
|
||||
Provision for credit losses
|
22,000
|
|
|
13,750
|
|
|
68,000
|
|
|
39,250
|
|
||||
Net interest income after provision for credit losses
|
144,739
|
|
|
128,298
|
|
|
400,591
|
|
|
375,092
|
|
||||
Non-interest income
|
|
|
|
|
|
|
|
||||||||
Service charges on deposit accounts
|
2,880
|
|
|
2,096
|
|
|
7,401
|
|
|
6,339
|
|
||||
Trust fee income
|
1,113
|
|
|
1,222
|
|
|
3,024
|
|
|
3,709
|
|
||||
Bank owned life insurance (BOLI) income
|
520
|
|
|
484
|
|
|
1,592
|
|
|
1,444
|
|
||||
Brokered loan fees
|
7,581
|
|
|
4,885
|
|
|
18,090
|
|
|
14,394
|
|
||||
Swap fees
|
918
|
|
|
254
|
|
|
2,330
|
|
|
3,275
|
|
||||
Other
|
3,704
|
|
|
2,439
|
|
|
9,508
|
|
|
7,257
|
|
||||
Total non-interest income
|
16,716
|
|
|
11,380
|
|
|
41,945
|
|
|
36,418
|
|
||||
Non-interest expense
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
56,722
|
|
|
48,583
|
|
|
162,904
|
|
|
142,611
|
|
||||
Net occupancy expense
|
5,634
|
|
|
5,874
|
|
|
17,284
|
|
|
17,373
|
|
||||
Marketing
|
4,292
|
|
|
3,999
|
|
|
12,686
|
|
|
12,142
|
|
||||
Legal and professional
|
5,333
|
|
|
5,510
|
|
|
16,883
|
|
|
15,176
|
|
||||
Communications and technology
|
6,620
|
|
|
5,180
|
|
|
19,228
|
|
|
15,905
|
|
||||
FDIC insurance assessment
|
6,355
|
|
|
4,489
|
|
|
17,867
|
|
|
12,490
|
|
||||
Allowance and other carrying costs for OREO
|
269
|
|
|
1
|
|
|
765
|
|
|
16
|
|
||||
Other
|
9,574
|
|
|
8,052
|
|
|
28,257
|
|
|
23,768
|
|
||||
Total non-interest expense
|
94,799
|
|
|
81,688
|
|
|
275,874
|
|
|
239,481
|
|
||||
Income before income taxes
|
66,656
|
|
|
57,990
|
|
|
166,662
|
|
|
172,029
|
|
||||
Income tax expense
|
23,931
|
|
|
20,876
|
|
|
59,929
|
|
|
61,928
|
|
||||
Net income
|
42,725
|
|
|
37,114
|
|
|
106,733
|
|
|
110,101
|
|
||||
Preferred stock dividends
|
2,438
|
|
|
2,438
|
|
|
7,313
|
|
|
7,313
|
|
||||
Net income available to common stockholders
|
$
|
40,287
|
|
|
$
|
34,676
|
|
|
$
|
99,420
|
|
|
$
|
102,788
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
||||||||
Change in net unrealized gain on available-for-sale securities arising during period, before-tax
|
$
|
(63
|
)
|
|
$
|
(216
|
)
|
|
$
|
(121
|
)
|
|
$
|
(613
|
)
|
Income tax benefit related to net unrealized gain on available-for-sale securities
|
(23
|
)
|
|
(75
|
)
|
|
(43
|
)
|
|
(214
|
)
|
||||
Other comprehensive loss, net of tax
|
(40
|
)
|
|
(141
|
)
|
|
(78
|
)
|
|
(399
|
)
|
||||
Comprehensive income
|
$
|
42,685
|
|
|
$
|
36,973
|
|
|
$
|
106,655
|
|
|
$
|
109,702
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share
|
$
|
0.88
|
|
|
$
|
0.76
|
|
|
$
|
2.16
|
|
|
$
|
2.24
|
|
Diluted earnings per common share
|
$
|
0.87
|
|
|
$
|
0.75
|
|
|
$
|
2.14
|
|
|
$
|
2.21
|
|
|
Preferred Stock
|
|
Common Stock
|
|
|
|
|
|
Treasury Stock
|
|
|
|
|
|||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Shares
|
|
Amount
|
|
Accumulated
Other
Comprehensive
Income (Loss),
Net of Taxes
|
|
Total
|
|||||||||||||||||
Balance at December 31, 2014 (audited)
|
6,000,000
|
|
|
$
|
150,000
|
|
|
45,735,424
|
|
|
$
|
457
|
|
|
$
|
709,738
|
|
|
$
|
622,714
|
|
|
(417
|
)
|
|
$
|
(8
|
)
|
|
$
|
1,289
|
|
|
$
|
1,484,190
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
110,101
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
110,101
|
|
|||||||
Change in unrealized gain on available-for-sale securities, net of taxes of $214
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(399
|
)
|
|
(399
|
)
|
|||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
109,702
|
|
||||||||||||||||
Tax benefit related to exercise of stock-based awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,092
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,092
|
|
|||||||
Stock-based compensation expense recognized in earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,328
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,328
|
|
|||||||
Issuance of preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Preferred stock dividend
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,313
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,313
|
)
|
|||||||
Issuance of stock related to stock-based awards
|
—
|
|
|
—
|
|
|
135,688
|
|
|
1
|
|
|
(949
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(948
|
)
|
|||||||
Balance at September 30, 2015
|
6,000,000
|
|
|
$
|
150,000
|
|
|
45,871,112
|
|
|
$
|
458
|
|
|
$
|
713,209
|
|
|
$
|
725,502
|
|
|
(417
|
)
|
|
$
|
(8
|
)
|
|
$
|
890
|
|
|
$
|
1,590,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at December 31, 2015 (audited)
|
6,000,000
|
|
|
$
|
150,000
|
|
|
45,874,224
|
|
|
$
|
459
|
|
|
$
|
714,546
|
|
|
$
|
757,818
|
|
|
(417
|
)
|
|
$
|
(8
|
)
|
|
$
|
718
|
|
|
$
|
1,623,533
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
106,733
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
106,733
|
|
|||||||
Change in unrealized gain on available-for-sale securities, net of taxes of $43
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(78
|
)
|
|
(78
|
)
|
|||||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
106,655
|
|
||||||||||||||||
Tax benefit related to exercise of stock-based awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,213
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,213
|
|
|||||||
Stock-based compensation expense recognized in earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,466
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,466
|
|
|||||||
Preferred stock dividend
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,313
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,313
|
)
|
|||||||
Issuance of stock related to stock-based awards
|
—
|
|
|
—
|
|
|
135,688
|
|
|
1
|
|
|
(1,773
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,772
|
)
|
|||||||
Balance at September 30, 2016
|
6,000,000
|
|
|
$
|
150,000
|
|
|
46,009,912
|
|
|
$
|
460
|
|
|
$
|
717,452
|
|
|
$
|
857,238
|
|
|
(417
|
)
|
|
$
|
(8
|
)
|
|
$
|
640
|
|
|
$
|
1,725,782
|
|
|
Nine months ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
Operating activities
|
|
|
|
||||
Net income
|
$
|
106,733
|
|
|
$
|
110,101
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Provision for credit losses
|
68,000
|
|
|
39,250
|
|
||
Depreciation and amortization
|
16,179
|
|
|
12,230
|
|
||
Increase in valuation allowance on mortgage servicing rights
|
414
|
|
|
—
|
|
||
Bank owned life insurance (BOLI) income
|
(1,592
|
)
|
|
(1,444
|
)
|
||
Stock-based compensation expense
|
6,175
|
|
|
9,286
|
|
||
Excess tax benefits from stock-based compensation arrangements
|
(1,328
|
)
|
|
(1,134
|
)
|
||
Purchases of loans held for sale
|
(1,927,702
|
)
|
|
(4,440
|
)
|
||
Proceeds from sales and repayments of loans held for sale
|
1,368,666
|
|
|
3,378
|
|
||
Capitalization of mortgage servicing rights
|
(16,344
|
)
|
|
—
|
|
||
(Gain) loss on sale of loans held for sale and other assets
|
(1,307
|
)
|
|
134
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accrued interest receivable and other assets
|
(79,267
|
)
|
|
(77,873
|
)
|
||
Accrued interest payable and other liabilities
|
34,172
|
|
|
2,339
|
|
||
Net cash provided by (used in) operating activities
|
(427,201
|
)
|
|
91,827
|
|
||
Investing activities
|
|
|
|
||||
Purchases of available-for-sale securities
|
(1,278
|
)
|
|
—
|
|
||
Maturities and calls of available-for-sale securities
|
265
|
|
|
2,430
|
|
||
Principal payments received on available-for-sale securities
|
4,528
|
|
|
6,677
|
|
||
Originations of mortgage finance loans
|
(74,594,117
|
)
|
|
(66,786,322
|
)
|
||
Proceeds from pay-offs of mortgage finance loans
|
74,599,234
|
|
|
66,575,657
|
|
||
Net increase in loans held for investment, excluding mortgage finance loans
|
(943,534
|
)
|
|
(1,417,605
|
)
|
||
Purchase of premises and equipment, net
|
(1,526
|
)
|
|
(3,729
|
)
|
||
Proceeds from sale of foreclosed assets
|
62
|
|
|
1,430
|
|
||
Net cash used in investing activities
|
(936,366
|
)
|
|
(1,621,462
|
)
|
||
Financing activities
|
|
|
|
||||
Net increase in deposits
|
3,060,504
|
|
|
2,492,045
|
|
||
Costs from issuance of stock related to stock-based awards and warrants
|
(1,772
|
)
|
|
(948
|
)
|
||
Preferred dividends paid
|
(7,313
|
)
|
|
(7,313
|
)
|
||
Net increase in other borrowings
|
170,000
|
|
|
149,995
|
|
||
Excess tax benefits from stock-based compensation arrangements
|
1,328
|
|
|
1,134
|
|
||
Net increase (decrease) in Federal funds purchased and repurchase agreements
|
(61,631
|
)
|
|
11,158
|
|
||
Net cash provided by financing activities
|
3,161,116
|
|
|
2,646,071
|
|
||
Net increase in cash and cash equivalents
|
1,797,549
|
|
|
1,116,436
|
|
||
Cash and cash equivalents at beginning of period
|
1,790,870
|
|
|
1,330,514
|
|
||
Cash and cash equivalents at end of period
|
$
|
3,588,419
|
|
|
$
|
2,446,950
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Cash paid during the period for interest
|
$
|
48,119
|
|
|
$
|
35,849
|
|
Cash paid during the period for income taxes
|
68,716
|
|
|
70,208
|
|
||
Transfers from loans/leases to OREO and other repossessed assets
|
18,822
|
|
|
1,177
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
42,725
|
|
|
$
|
37,114
|
|
|
$
|
106,733
|
|
|
$
|
110,101
|
|
Preferred stock dividends
|
2,438
|
|
|
2,438
|
|
|
7,313
|
|
|
7,313
|
|
||||
Net income available to common stockholders
|
40,287
|
|
|
34,676
|
|
|
$
|
99,420
|
|
|
102,788
|
|
|||
Denominator:
|
|
|
|
|
|
|
|
||||||||
Denominator for basic earnings per share— weighted average shares
|
45,980,517
|
|
|
45,827,902
|
|
|
45,931,357
|
|
|
45,792,470
|
|
||||
Effect of employee stock-based awards
(1)
|
118,885
|
|
|
216,499
|
|
|
119,021
|
|
|
216,448
|
|
||||
Effect of warrants to purchase common stock
|
410,281
|
|
|
426,989
|
|
|
382,578
|
|
|
416,574
|
|
||||
Denominator for dilutive earnings per share—adjusted weighted average shares and assumed conversions
|
46,509,683
|
|
|
46,471,390
|
|
|
46,432,956
|
|
|
46,425,492
|
|
||||
Basic earnings per common share
|
$
|
0.88
|
|
|
$
|
0.76
|
|
|
$
|
2.16
|
|
|
$
|
2.24
|
|
Diluted earnings per common share
|
$
|
0.87
|
|
|
$
|
0.75
|
|
|
$
|
2.14
|
|
|
$
|
2.21
|
|
(1)
|
Stock options, SARs and RSUs outstanding of
319,476
at
September 30, 2016
and
101,100
at
September 30, 2015
have not been included in diluted earnings per share because to do so would have been anti-dilutive for the periods presented.
|
|
September 30, 2016
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair
Value
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Residential mortgage-backed securities
|
$
|
16,007
|
|
|
$
|
1,139
|
|
|
$
|
—
|
|
|
$
|
17,146
|
|
Municipals
|
564
|
|
|
2
|
|
|
—
|
|
|
566
|
|
||||
Equity securities
(1)
|
8,800
|
|
|
49
|
|
|
(205
|
)
|
|
8,644
|
|
||||
|
$
|
25,371
|
|
|
$
|
1,190
|
|
|
$
|
(205
|
)
|
|
$
|
26,356
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2015
|
||||||||||||||
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Estimated
Fair
Value
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Residential mortgage-backed securities
|
$
|
20,536
|
|
|
$
|
1,365
|
|
|
$
|
—
|
|
|
$
|
21,901
|
|
Municipals
|
828
|
|
|
3
|
|
|
—
|
|
|
831
|
|
||||
Equity securities
(1)
|
7,522
|
|
|
11
|
|
|
(273
|
)
|
|
7,260
|
|
||||
|
$
|
28,886
|
|
|
$
|
1,379
|
|
|
$
|
(273
|
)
|
|
$
|
29,992
|
|
(1)
|
Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan.
|
|
September 30, 2016
|
||||||||||||||||||
|
Less Than
One Year
|
|
After One
Through
Five Years
|
|
After Five
Through
Ten Years
|
|
After Ten
Years
|
|
Total
|
||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed securities:
(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
50
|
|
|
$
|
2,565
|
|
|
$
|
3,418
|
|
|
$
|
9,974
|
|
|
$
|
16,007
|
|
Estimated fair value
|
50
|
|
|
2,649
|
|
|
3,856
|
|
|
10,591
|
|
|
17,146
|
|
|||||
Weighted average yield
(3)
|
5.50
|
%
|
|
4.70
|
%
|
|
5.54
|
%
|
|
2.69
|
%
|
|
3.63
|
%
|
|||||
Municipals:
(2)
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
275
|
|
|
289
|
|
|
—
|
|
|
—
|
|
|
564
|
|
|||||
Estimated fair value
|
275
|
|
|
291
|
|
|
—
|
|
|
—
|
|
|
566
|
|
|||||
Weighted average yield
(3)
|
5.61
|
%
|
|
5.76
|
%
|
|
—
|
|
|
—
|
|
|
5.69
|
%
|
|||||
Equity securities:
(4)
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
8,800
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,800
|
|
|||||
Estimated fair value
|
8,644
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,644
|
|
|||||
Total available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
|
|
|
|
|
|
|
|
$
|
25,371
|
|
||||||||
Estimated fair value
|
|
|
|
|
|
|
|
|
$
|
26,356
|
|
|
December 31, 2015
|
||||||||||||||||||
|
Less Than
One Year
|
|
After One
Through
Five Years
|
|
After Five
Through
Ten Years
|
|
After Ten
Years
|
|
Total
|
||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed securities:
(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
$
|
214
|
|
|
$
|
4,655
|
|
|
$
|
4,265
|
|
|
$
|
11,402
|
|
|
$
|
20,536
|
|
Estimated fair value
|
217
|
|
|
4,837
|
|
|
4,747
|
|
|
12,100
|
|
|
21,901
|
|
|||||
Weighted average yield
(3)
|
5.62
|
%
|
|
4.71
|
%
|
|
5.54
|
%
|
|
2.53
|
%
|
|
3.68
|
%
|
|||||
Municipals:
(2)
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
265
|
|
|
563
|
|
|
—
|
|
|
—
|
|
|
828
|
|
|||||
Estimated fair value
|
265
|
|
|
566
|
|
|
—
|
|
|
—
|
|
|
831
|
|
|||||
Weighted average yield
(3)
|
5.46
|
%
|
|
5.69
|
%
|
|
—
|
%
|
|
—
|
%
|
|
5.62
|
%
|
|||||
Equity securities:
(4)
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
7,522
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,522
|
|
|||||
Estimated fair value
|
7,260
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,260
|
|
|||||
Total available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized cost
|
|
|
|
|
|
|
|
|
$
|
28,886
|
|
||||||||
Estimated fair value
|
|
|
|
|
|
|
|
|
$
|
29,992
|
|
(1)
|
Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.
|
(2)
|
Yields have been adjusted to a tax equivalent basis assuming a
35%
federal tax rate.
|
(3)
|
Yields are calculated based on amortized cost.
|
(4)
|
These equity securities do not have a stated maturity.
|
September 30, 2016
|
Less Than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
||||||||||||
Equity securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,295
|
|
|
$
|
(205
|
)
|
|
$
|
6,295
|
|
|
$
|
(205
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2015
|
Less Than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
||||||||||||
Equity securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,227
|
|
|
$
|
(273
|
)
|
|
$
|
6,227
|
|
|
$
|
(273
|
)
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
Commercial
|
$
|
7,053,979
|
|
|
$
|
6,672,631
|
|
Mortgage finance
|
4,961,159
|
|
|
4,966,276
|
|
||
Construction
|
2,150,453
|
|
|
1,851,717
|
|
||
Real estate
|
3,391,831
|
|
|
3,139,197
|
|
||
Consumer
|
27,554
|
|
|
25,323
|
|
||
Leases
|
96,878
|
|
|
113,996
|
|
||
Gross loans held for investment
|
17,681,854
|
|
|
16,769,140
|
|
||
Deferred income (net of direct origination costs)
|
(58,301
|
)
|
|
(57,190
|
)
|
||
Allowance for loan losses
|
(180,436
|
)
|
|
(141,111
|
)
|
||
Total loans held for investment
|
$
|
17,443,117
|
|
|
$
|
16,570,839
|
|
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Commercial
|
|
Mortgage
Finance
|
|
Construction
|
|
Real Estate
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pass
|
$
|
6,605,475
|
|
|
$
|
4,961,159
|
|
|
$
|
2,130,826
|
|
|
$
|
3,348,510
|
|
|
$
|
27,210
|
|
|
$
|
92,875
|
|
|
$
|
17,166,055
|
|
Special mention
|
128,785
|
|
|
—
|
|
|
7,361
|
|
|
34,581
|
|
|
—
|
|
|
37
|
|
|
170,764
|
|
|||||||
Substandard-accruing
|
153,386
|
|
|
—
|
|
|
12,107
|
|
|
6,319
|
|
|
144
|
|
|
3,966
|
|
|
175,922
|
|
|||||||
Non-accrual
|
166,333
|
|
|
—
|
|
|
159
|
|
|
2,421
|
|
|
200
|
|
|
—
|
|
|
169,113
|
|
|||||||
Total loans held for investment
|
$
|
7,053,979
|
|
|
$
|
4,961,159
|
|
|
$
|
2,150,453
|
|
|
$
|
3,391,831
|
|
|
$
|
27,554
|
|
|
$
|
96,878
|
|
|
$
|
17,681,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Commercial
|
|
Mortgage
Finance
|
|
Construction
|
|
Real Estate
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pass
|
$
|
6,375,332
|
|
|
$
|
4,966,276
|
|
|
$
|
1,821,678
|
|
|
$
|
3,085,463
|
|
|
$
|
25,093
|
|
|
$
|
103,560
|
|
|
$
|
16,377,402
|
|
Special mention
|
111,911
|
|
|
—
|
|
|
13,090
|
|
|
30,585
|
|
|
3
|
|
|
334
|
|
|
155,923
|
|
|||||||
Substandard-accruing
|
46,731
|
|
|
—
|
|
|
281
|
|
|
3,837
|
|
|
227
|
|
|
4,951
|
|
|
56,027
|
|
|||||||
Non-accrual
|
138,657
|
|
|
—
|
|
|
16,668
|
|
|
19,312
|
|
|
—
|
|
|
5,151
|
|
|
179,788
|
|
|||||||
Total loans held for investment
|
$
|
6,672,631
|
|
|
$
|
4,966,276
|
|
|
$
|
1,851,717
|
|
|
$
|
3,139,197
|
|
|
$
|
25,323
|
|
|
$
|
113,996
|
|
|
$
|
16,769,140
|
|
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(in thousands)
|
Commercial
|
|
Mortgage
Finance
|
|
Construction
|
|
Real
Estate
|
|
Consumer
|
|
Leases
|
|
Additional Qualitative Reserve
|
|
Total
|
||||||||||||||||
Beginning balance
|
$
|
112,446
|
|
|
$
|
—
|
|
|
$
|
6,836
|
|
|
$
|
13,381
|
|
|
$
|
338
|
|
|
$
|
3,931
|
|
|
$
|
4,179
|
|
|
$
|
141,111
|
|
Provision for loan losses
|
65,446
|
|
|
—
|
|
|
1,607
|
|
|
1,981
|
|
|
(23
|
)
|
|
(2,646
|
)
|
|
(226
|
)
|
|
66,139
|
|
||||||||
Charge-offs
|
34,232
|
|
|
—
|
|
|
—
|
|
|
528
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
34,800
|
|
||||||||
Recoveries
|
7,829
|
|
|
—
|
|
|
34
|
|
|
36
|
|
|
16
|
|
|
71
|
|
|
—
|
|
|
7,986
|
|
||||||||
Net charge-offs (recoveries)
|
26,403
|
|
|
—
|
|
|
(34
|
)
|
|
492
|
|
|
24
|
|
|
(71
|
)
|
|
—
|
|
|
26,814
|
|
||||||||
Ending balance
|
$
|
151,489
|
|
|
$
|
—
|
|
|
$
|
8,477
|
|
|
$
|
14,870
|
|
|
$
|
291
|
|
|
$
|
1,356
|
|
|
$
|
3,953
|
|
|
$
|
180,436
|
|
Period end amount allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans individually evaluated for impairment
|
$
|
42,674
|
|
|
$
|
—
|
|
|
$
|
24
|
|
|
$
|
136
|
|
|
$
|
30
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
42,864
|
|
Loans collectively evaluated for impairment
|
108,815
|
|
|
—
|
|
|
8,453
|
|
|
14,734
|
|
|
261
|
|
|
1,356
|
|
|
3,953
|
|
|
137,572
|
|
||||||||
Ending balance
|
$
|
151,489
|
|
|
$
|
—
|
|
|
$
|
8,477
|
|
|
$
|
14,870
|
|
|
$
|
291
|
|
|
$
|
1,356
|
|
|
$
|
3,953
|
|
|
$
|
180,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(in thousands)
|
Commercial
|
|
Mortgage
Finance
|
|
Construction
|
|
Real
Estate
|
|
Consumer
|
|
Leases
|
|
Additional Qualitative Reserve
|
|
Total
|
||||||||||||||||
Beginning balance
|
$
|
70,654
|
|
|
$
|
—
|
|
|
$
|
7,935
|
|
|
$
|
15,582
|
|
|
$
|
240
|
|
|
$
|
1,141
|
|
|
$
|
5,402
|
|
|
$
|
100,954
|
|
Provision for loan losses
|
48,689
|
|
|
—
|
|
|
(3,944
|
)
|
|
(4,328
|
)
|
|
154
|
|
|
(221
|
)
|
|
(1,622
|
)
|
|
38,728
|
|
||||||||
Charge-offs
|
11,278
|
|
|
—
|
|
|
—
|
|
|
346
|
|
|
62
|
|
|
25
|
|
|
—
|
|
|
11,711
|
|
||||||||
Recoveries
|
2,098
|
|
|
—
|
|
|
397
|
|
|
28
|
|
|
19
|
|
|
27
|
|
|
—
|
|
|
2,569
|
|
||||||||
Net charge-offs (recoveries)
|
9,180
|
|
|
—
|
|
|
(397
|
)
|
|
318
|
|
|
43
|
|
|
(2
|
)
|
|
—
|
|
|
9,142
|
|
||||||||
Ending balance
|
$
|
110,163
|
|
|
$
|
—
|
|
|
$
|
4,388
|
|
|
$
|
10,936
|
|
|
$
|
351
|
|
|
$
|
922
|
|
|
$
|
3,780
|
|
|
$
|
130,540
|
|
Period end amount allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans individually evaluated for impairment
|
$
|
9,304
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
254
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
9,559
|
|
Loans collectively evaluated for impairment
|
100,859
|
|
|
—
|
|
|
4,388
|
|
|
10,682
|
|
|
351
|
|
|
921
|
|
|
3,780
|
|
|
120,981
|
|
||||||||
Ending balance
|
$
|
110,163
|
|
|
$
|
—
|
|
|
$
|
4,388
|
|
|
$
|
10,936
|
|
|
$
|
351
|
|
|
$
|
922
|
|
|
$
|
3,780
|
|
|
$
|
130,540
|
|
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Commercial
|
|
Mortgage
Finance
|
|
Construction
|
|
Real Estate
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||
Loans individually evaluated for impairment
|
$
|
168,014
|
|
|
$
|
—
|
|
|
$
|
159
|
|
|
$
|
3,787
|
|
|
$
|
200
|
|
|
$
|
—
|
|
|
$
|
172,160
|
|
Loans collectively evaluated for impairment
|
6,885,965
|
|
|
4,961,159
|
|
|
2,150,294
|
|
|
3,388,044
|
|
|
27,354
|
|
|
96,878
|
|
|
17,509,694
|
|
|||||||
Total
|
$
|
7,053,979
|
|
|
$
|
4,961,159
|
|
|
$
|
2,150,453
|
|
|
$
|
3,391,831
|
|
|
$
|
27,554
|
|
|
$
|
96,878
|
|
|
$
|
17,681,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Commercial
|
|
Mortgage
Finance
|
|
Construction
|
|
Real Estate
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||
Loans individually evaluated for impairment
|
$
|
140,479
|
|
|
$
|
—
|
|
|
$
|
16,668
|
|
|
$
|
21,042
|
|
|
$
|
—
|
|
|
$
|
5,151
|
|
|
$
|
183,340
|
|
Loans collectively evaluated for impairment
|
6,532,152
|
|
|
4,966,276
|
|
|
1,835,049
|
|
|
3,118,155
|
|
|
25,323
|
|
|
108,845
|
|
|
16,585,800
|
|
|||||||
Total
|
$
|
6,672,631
|
|
|
$
|
4,966,276
|
|
|
$
|
1,851,717
|
|
|
$
|
3,139,197
|
|
|
$
|
25,323
|
|
|
$
|
113,996
|
|
|
$
|
16,769,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Commercial
|
|
Mortgage
Finance
|
|
Construction
|
|
Real Estate
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||
Loans individually evaluated for impairment
|
$
|
82,050
|
|
|
$
|
—
|
|
|
$
|
16,749
|
|
|
$
|
9,895
|
|
|
$
|
—
|
|
|
$
|
5,699
|
|
|
$
|
114,393
|
|
Loans collectively evaluated for impairment
|
6,471,589
|
|
|
4,312,790
|
|
|
1,847,429
|
|
|
3,048,679
|
|
|
24,757
|
|
|
112,945
|
|
|
15,818,189
|
|
|||||||
Total
|
$
|
6,553,639
|
|
|
$
|
4,312,790
|
|
|
$
|
1,864,178
|
|
|
$
|
3,058,574
|
|
|
$
|
24,757
|
|
|
$
|
118,644
|
|
|
$
|
15,932,582
|
|
September 30, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Business loans
|
$
|
15,615
|
|
|
$
|
18,839
|
|
|
$
|
—
|
|
|
$
|
10,359
|
|
|
$
|
—
|
|
Energy
|
61,339
|
|
|
71,100
|
|
|
—
|
|
|
53,274
|
|
|
—
|
|
|||||
Construction
|
|
|
|
|
|
|
|
|
|
||||||||||
Market risk
|
—
|
|
|
—
|
|
|
—
|
|
|
3,704
|
|
|
—
|
|
|||||
Real estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Market risk
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial
|
2,087
|
|
|
2,087
|
|
|
—
|
|
|
5,282
|
|
|
28
|
|
|||||
Secured by 1-4 family
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Leases
|
—
|
|
|
—
|
|
|
—
|
|
|
537
|
|
|
—
|
|
|||||
Total impaired loans with no allowance recorded
|
$
|
79,041
|
|
|
$
|
92,026
|
|
|
$
|
—
|
|
|
$
|
73,156
|
|
|
$
|
28
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Business loans
|
$
|
23,079
|
|
|
$
|
23,154
|
|
|
$
|
9,516
|
|
|
$
|
22,207
|
|
|
$
|
—
|
|
Energy
|
67,981
|
|
|
72,535
|
|
|
33,158
|
|
|
74,770
|
|
|
18
|
|
|||||
Construction
|
|
|
|
|
|
|
|
|
|
||||||||||
Market risk
|
159
|
|
|
159
|
|
|
24
|
|
|
18
|
|
|
—
|
|
|||||
Real estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Market risk
|
1,366
|
|
|
1,366
|
|
|
20
|
|
|
3,548
|
|
|
—
|
|
|||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Secured by 1-4 family
|
334
|
|
|
334
|
|
|
116
|
|
|
469
|
|
|
—
|
|
|||||
Consumer
|
200
|
|
|
200
|
|
|
30
|
|
|
22
|
|
|
—
|
|
|||||
Leases
|
—
|
|
|
—
|
|
|
—
|
|
|
722
|
|
|
—
|
|
|||||
Total impaired loans with an allowance recorded
|
$
|
93,119
|
|
|
$
|
97,748
|
|
|
$
|
42,864
|
|
|
$
|
101,756
|
|
|
$
|
18
|
|
Combined:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Business loans
|
$
|
38,694
|
|
|
$
|
41,993
|
|
|
$
|
9,516
|
|
|
$
|
32,566
|
|
|
$
|
—
|
|
Energy
|
129,320
|
|
|
143,635
|
|
|
33,158
|
|
|
128,044
|
|
|
18
|
|
|||||
Construction
|
|
|
|
|
|
|
|
|
|
||||||||||
Market risk
|
159
|
|
|
159
|
|
|
24
|
|
|
3,722
|
|
|
—
|
|
|||||
Real estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Market risk
|
1,366
|
|
|
1,366
|
|
|
20
|
|
|
3,548
|
|
|
—
|
|
|||||
Commercial
|
2,087
|
|
|
2,087
|
|
|
—
|
|
|
5,282
|
|
|
28
|
|
|||||
Secured by 1-4 family
|
334
|
|
|
334
|
|
|
116
|
|
|
469
|
|
|
—
|
|
|||||
Consumer
|
200
|
|
|
200
|
|
|
30
|
|
|
22
|
|
|
—
|
|
|||||
Leases
|
—
|
|
|
—
|
|
|
—
|
|
|
1,259
|
|
|
—
|
|
|||||
Total impaired loans
|
$
|
172,160
|
|
|
$
|
189,774
|
|
|
$
|
42,864
|
|
|
$
|
174,912
|
|
|
$
|
46
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Business loans
|
$
|
11,097
|
|
|
$
|
13,529
|
|
|
$
|
—
|
|
|
$
|
17,311
|
|
|
$
|
—
|
|
Energy
|
37,968
|
|
|
37,968
|
|
|
—
|
|
|
21,791
|
|
|
36
|
|
|||||
Construction
|
|
|
|
|
|
|
|
|
|
||||||||||
Market risk
|
16,668
|
|
|
16,668
|
|
|
—
|
|
|
9,764
|
|
|
—
|
|
|||||
Real estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Market risk
|
—
|
|
|
—
|
|
|
—
|
|
|
3,352
|
|
|
—
|
|
|||||
Commercial
|
15,353
|
|
|
15,353
|
|
|
—
|
|
|
4,364
|
|
|
24
|
|
|||||
Secured by 1-4 family
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Leases
|
2,417
|
|
|
2,417
|
|
|
—
|
|
|
3,233
|
|
|
—
|
|
|||||
Total impaired loans with no allowance recorded
|
$
|
83,503
|
|
|
$
|
85,935
|
|
|
$
|
—
|
|
|
$
|
59,815
|
|
|
$
|
60
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Business loans
|
$
|
20,983
|
|
|
$
|
25,300
|
|
|
$
|
5,737
|
|
|
$
|
31,131
|
|
|
$
|
—
|
|
Energy
|
70,431
|
|
|
70,431
|
|
|
14,103
|
|
|
6,641
|
|
|
—
|
|
|||||
Construction
|
|
|
|
|
|
|
|
|
|
||||||||||
Market risk
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Market risk
|
5,335
|
|
|
5,335
|
|
|
1,066
|
|
|
2,558
|
|
|
—
|
|
|||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
306
|
|
|
—
|
|
|||||
Secured by 1-4 family
|
354
|
|
|
354
|
|
|
125
|
|
|
1,580
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|||||
Leases
|
2,734
|
|
|
2,734
|
|
|
2,436
|
|
|
302
|
|
|
—
|
|
|||||
Total impaired loans with an allowance recorded
|
$
|
99,837
|
|
|
$
|
104,154
|
|
|
$
|
23,467
|
|
|
$
|
42,528
|
|
|
$
|
—
|
|
Combined:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Business loans
|
$
|
32,080
|
|
|
$
|
38,829
|
|
|
$
|
5,737
|
|
|
$
|
48,442
|
|
|
$
|
—
|
|
Energy
|
108,399
|
|
|
108,399
|
|
|
14,103
|
|
|
28,432
|
|
|
36
|
|
|||||
Construction
|
|
|
|
|
|
|
|
|
|
||||||||||
Market risk
|
16,668
|
|
|
16,668
|
|
|
—
|
|
|
9,764
|
|
|
—
|
|
|||||
Real estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Market risk
|
5,335
|
|
|
5,335
|
|
|
1,066
|
|
|
5,910
|
|
|
—
|
|
|||||
Commercial
|
15,353
|
|
|
15,353
|
|
|
—
|
|
|
4,670
|
|
|
24
|
|
|||||
Secured by 1-4 family
|
354
|
|
|
354
|
|
|
125
|
|
|
1,580
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|||||
Leases
|
5,151
|
|
|
5,151
|
|
|
2,436
|
|
|
3,535
|
|
|
—
|
|
|||||
Total impaired loans
|
$
|
183,340
|
|
|
$
|
190,089
|
|
|
$
|
23,467
|
|
|
$
|
102,343
|
|
|
$
|
60
|
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater
Than 90
Days and
Accruing(1)
|
|
Total Past
Due
|
|
Non-accrual
|
|
Current
|
|
Total
|
||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Business loans
|
$
|
37,993
|
|
|
$
|
14,827
|
|
|
$
|
9,593
|
|
|
$
|
62,413
|
|
|
$
|
37,013
|
|
|
$
|
6,012,367
|
|
|
$
|
6,111,793
|
|
Energy
|
1,179
|
|
|
—
|
|
|
—
|
|
|
1,179
|
|
|
129,320
|
|
|
811,687
|
|
|
942,186
|
|
|||||||
Mortgage finance loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,961,159
|
|
|
4,961,159
|
|
|||||||
Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Market risk
|
14,015
|
|
|
334
|
|
|
—
|
|
|
14,349
|
|
|
159
|
|
|
2,125,683
|
|
|
2,140,191
|
|
|||||||
Secured by 1-4 family
|
1,063
|
|
|
—
|
|
|
—
|
|
|
1,063
|
|
|
—
|
|
|
9,199
|
|
|
10,262
|
|
|||||||
Real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Market risk
|
—
|
|
|
639
|
|
|
—
|
|
|
639
|
|
|
—
|
|
|
2,548,337
|
|
|
2,548,976
|
|
|||||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,087
|
|
|
654,029
|
|
|
656,116
|
|
|||||||
Secured by 1-4 family
|
382
|
|
|
47
|
|
|
107
|
|
|
536
|
|
|
334
|
|
|
185,869
|
|
|
186,739
|
|
|||||||
Consumer
|
—
|
|
|
7
|
|
|
6
|
|
|
13
|
|
|
200
|
|
|
27,341
|
|
|
27,554
|
|
|||||||
Leases
|
41
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
96,837
|
|
|
96,878
|
|
|||||||
Total loans held for investment
|
$
|
54,673
|
|
|
$
|
15,854
|
|
|
$
|
9,706
|
|
|
$
|
80,233
|
|
|
$
|
169,113
|
|
|
$
|
17,432,508
|
|
|
$
|
17,681,854
|
|
(1)
|
Loans past due 90 days and still accruing includes premium finance loans of
$7.1 million
. These loans are generally secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date.
|
September 30, 2016
|
|
|
|
|
|
|||||
|
Number of Restructured Loans
|
|
Pre-Restructuring Outstanding Recorded Investment
|
|
Post-Restructuring Outstanding Recorded Investment
|
|||||
Energy loans
|
2
|
|
|
$
|
14,235
|
|
|
$
|
13,289
|
|
Commercial business loans
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Real estate - market risk
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total new restructured loans in 2016
|
2
|
|
|
$
|
14,235
|
|
|
$
|
13,289
|
|
|
|
|
|
|
|
|||||
September 30, 2015
|
|
|
|
|
|
|||||
|
Number of Restructured Loans
|
|
Pre-Restructuring Outstanding Recorded Investment
|
|
Post-Restructuring Outstanding Recorded Investment
|
|||||
Commercial business loans
|
5
|
|
|
$
|
20,459
|
|
|
$
|
15,438
|
|
Total new restructured loans in 2015
|
5
|
|
|
$
|
20,459
|
|
|
$
|
15,438
|
|
|
Nine months ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
Extended maturity
|
$
|
—
|
|
|
$
|
—
|
|
Adjusted payment schedule
|
12,647
|
|
|
—
|
|
||
Combination of maturity extension and payment schedule adjustment
|
642
|
|
|
15,438
|
|
||
Total
|
$
|
13,289
|
|
|
$
|
15,438
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Beginning balance
|
$
|
18,727
|
|
|
$
|
609
|
|
|
$
|
278
|
|
|
$
|
568
|
|
Additions
|
282
|
|
|
—
|
|
|
18,822
|
|
|
1,177
|
|
||||
Sales
|
—
|
|
|
(422
|
)
|
|
(91
|
)
|
|
(1,558
|
)
|
||||
Valuation allowance for OREO
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Direct write-downs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Ending balance
|
$
|
19,009
|
|
|
$
|
187
|
|
|
$
|
19,009
|
|
|
$
|
187
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
Unpaid principal balance
|
$
|
620,207
|
|
|
$
|
82,853
|
|
Fair value
|
648,684
|
|
|
86,075
|
|
||
Fair value over/(under) unpaid principal balance
|
$
|
28,477
|
|
|
$
|
3,222
|
|
Servicing asset:
|
|
||
Balance, beginning of year(1)
|
$
|
423
|
|
Capitalized servicing rights
|
16,344
|
|
|
Amortization
|
(891
|
)
|
|
Balance, end of period
|
$
|
15,876
|
|
Valuation allowance:
|
|
||
Balance, beginning of year
|
$
|
—
|
|
Increase in valuation allowance
|
414
|
|
|
Balance, end of period
|
$
|
414
|
|
Servicing asset, net(1)
|
$
|
15,462
|
|
Fair value
|
$
|
15,970
|
|
(1)
|
Mortgage servicing rights are reported on the consolidated balance sheets at lower of cost or market. Carrying value and fair value were the same at
December 31, 2015
, respectively.
|
|
September 30, 2016
|
December 31, 2015
|
||
Average discount rates
|
10.09
|
%
|
9.76
|
%
|
Expected prepayment speeds
|
11.18
|
%
|
9.66
|
%
|
Weighted average life, in years
|
6.5
|
|
7.3
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
Commitments to extend credit
|
$
|
5,604,322
|
|
|
$
|
5,542,363
|
|
Standby letters of credit
|
179,447
|
|
|
182,219
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||
Company
|
|
|
|
||
Risk-based capital:
|
|
|
|
||
CET1
|
7.55
|
%
|
|
7.47
|
%
|
Tier 1 capital
|
8.80
|
%
|
|
8.81
|
%
|
Total capital
|
11.09
|
%
|
|
11.05
|
%
|
Tier 1 leverage
|
8.38
|
%
|
|
8.92
|
%
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
(in thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Stock- based compensation expense recognized:
|
|
|
|
|
|
|
|
||||||||
SARs
|
$
|
74
|
|
|
$
|
85
|
|
|
$
|
233
|
|
|
$
|
282
|
|
RSUs
|
1,149
|
|
|
1,140
|
|
|
3,233
|
|
|
3,046
|
|
||||
Cash-based performance units
|
1,227
|
|
|
1,420
|
|
|
2,709
|
|
|
5,958
|
|
||||
Total compensation expense recognized
|
$
|
2,450
|
|
|
$
|
2,645
|
|
|
$
|
6,175
|
|
|
$
|
9,286
|
|
|
September 30, 2016
|
||
(in thousands)
|
SARs and
RSUs
|
||
Unrecognized compensation expense related to unvested awards
|
$
|
17,378
|
|
Weighted average period over which expense is expected to be recognized, in years
|
3.3
|
|
Level 1
|
Quoted prices in active markets for identical assets or liabilities. This category includes the assets and liabilities related to our non-qualified deferred compensation plan where values are based on quoted market prices for identical equity securities in an active market.
|
Level 2
|
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets include U.S. government and agency mortgage-backed debt securities, municipal
|
Level 3
|
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair values requires significant management judgment or estimation. This category also includes impaired loans, MSRs and OREO where collateral values have been based on third party appraisals; however, due to current economic conditions, comparative sales data typically used in appraisals may be unavailable or more subjective due to lack of market activity.
|
|
Fair Value Measurements Using
|
||||||||||
September 30, 2016
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||
Available-for-sale securities:(1)
|
|
|
|
|
|
||||||
Residential mortgage-backed securities
|
$
|
—
|
|
|
$
|
17,146
|
|
|
$
|
—
|
|
Municipals
|
—
|
|
|
566
|
|
|
—
|
|
|||
Equity securities(2)
|
1,300
|
|
|
7,344
|
|
|
—
|
|
|||
Loans held for sale (3)
|
—
|
|
|
648,684
|
|
|
—
|
|
|||
Loans held for investment(4) (6)
|
—
|
|
|
—
|
|
|
36,449
|
|
|||
OREO(5) (6)
|
—
|
|
|
—
|
|
|
19,009
|
|
|||
Derivative assets(7)
|
—
|
|
|
58,158
|
|
|
—
|
|
|||
Derivative liabilities(7)
|
—
|
|
|
60,548
|
|
|
—
|
|
|||
Non-qualified deferred compensation plan liabilities (8)
|
1,300
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
December 31, 2015
|
|
|
|
|
|
||||||
Available-for-sale securities:(1)
|
|
|
|
|
|
||||||
Residential mortgage-backed securities
|
$
|
—
|
|
|
$
|
21,901
|
|
|
$
|
—
|
|
Municipals
|
—
|
|
|
831
|
|
|
—
|
|
|||
Equity securities(2)
|
—
|
|
|
7,260
|
|
|
—
|
|
|||
Loans held for sale(3)
|
—
|
|
|
86,075
|
|
|
—
|
|
|||
Loans(4) (6)
|
—
|
|
|
—
|
|
|
41,420
|
|
|||
OREO(5) (6)
|
—
|
|
|
—
|
|
|
278
|
|
|||
Derivative assets(7)
|
—
|
|
|
35,292
|
|
|
—
|
|
|||
Derivative liabilities(7)
|
—
|
|
|
35,420
|
|
|
—
|
|
(1)
|
Securities are measured at fair value on a recurring basis, generally monthly.
|
(2)
|
Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan.
|
(3)
|
Loans held for sale are measured at fair value on a recurring basis, generally monthly.
|
(4)
|
Includes impaired loans that have been measured for impairment at the fair value of the loan’s collateral.
|
(5)
|
OREO is transferred from loans to OREO at fair value less selling costs.
|
(6)
|
Loans held for investment and OREO are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions.
|
(7)
|
Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly.
|
(8)
|
Non-qualified deferred compensation plan liabilities represent the fair value of the obligation to the employee, which corresponds to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly.
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
||||||||
Cash and cash equivalents
|
$
|
3,588,419
|
|
|
$
|
3,588,419
|
|
|
$
|
1,790,870
|
|
|
$
|
1,790,870
|
|
Securities, available-for-sale
|
26,356
|
|
|
26,356
|
|
|
29,992
|
|
|
29,992
|
|
||||
Loans held for sale
|
648,684
|
|
|
648,684
|
|
|
86,075
|
|
|
86,075
|
|
||||
Loans held for investment, net
|
17,443,117
|
|
|
17,445,311
|
|
|
16,570,839
|
|
|
16,576,297
|
|
||||
Derivative assets
|
58,158
|
|
|
58,158
|
|
|
35,292
|
|
|
35,292
|
|
||||
Deposits
|
18,145,123
|
|
|
18,145,619
|
|
|
15,084,619
|
|
|
15,085,080
|
|
||||
Federal funds purchased
|
73,768
|
|
|
73,768
|
|
|
74,164
|
|
|
74,164
|
|
||||
Customer repurchase agreements
|
7,652
|
|
|
7,652
|
|
|
68,887
|
|
|
68,887
|
|
||||
Other borrowings
|
1,670,000
|
|
|
1,670,000
|
|
|
1,500,000
|
|
|
1,500,000
|
|
||||
Subordinated notes
|
280,954
|
|
|
284,230
|
|
|
280,682
|
|
|
285,773
|
|
||||
Trust preferred subordinated debentures
|
113,406
|
|
|
113,406
|
|
|
113,406
|
|
|
113,406
|
|
||||
Derivative liabilities
|
60,548
|
|
|
60,548
|
|
|
35,420
|
|
|
35,420
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Estimated Fair Value
|
|
Estimated Fair Value
|
||||||||||||||||||||
|
Notional
Amount
|
|
Asset Derivative
|
|
Liability Derivative
|
|
Notional
Amount
|
|
Asset Derivative
|
|
Liability Derivative
|
||||||||||||
Non-hedging interest rate derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financial institution counterparties:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loan/lease interest rate swaps
|
$
|
1,070,684
|
|
|
$
|
—
|
|
|
$
|
56,503
|
|
|
$
|
976,389
|
|
|
$
|
—
|
|
|
$
|
33,851
|
|
Commercial loan/lease interest rate caps
|
211,854
|
|
|
230
|
|
|
—
|
|
|
194,304
|
|
|
1,441
|
|
|
—
|
|
||||||
Customer counterparties:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loan/lease interest rate swaps
|
1,070,684
|
|
|
56,503
|
|
|
—
|
|
|
976,389
|
|
|
33,851
|
|
|
—
|
|
||||||
Commercial loan/lease interest rate caps
|
211,854
|
|
|
—
|
|
|
230
|
|
|
194,304
|
|
|
—
|
|
|
1,441
|
|
||||||
Economic hedging interest rate derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loan purchase commitments
|
310,534
|
|
|
1,425
|
|
|
—
|
|
|
62,835
|
|
|
—
|
|
|
109
|
|
||||||
Forward sales commitments
|
941,963
|
|
|
—
|
|
|
3,815
|
|
|
143,200
|
|
|
—
|
|
|
19
|
|
||||||
Gross derivatives
|
|
|
58,158
|
|
|
60,548
|
|
|
|
|
35,292
|
|
|
35,420
|
|
||||||||
Offsetting derivative assets/liabilities
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
||||||||
Net derivatives included in the consolidated balance sheets
|
|
|
$
|
58,158
|
|
|
$
|
60,548
|
|
|
|
|
$
|
35,292
|
|
|
$
|
35,420
|
|
|
September 30, 2016
Weighted Average Interest Rate |
|
December 31, 2015
Weighted Average Interest Rate |
||||||||
|
Received
|
|
Paid
|
|
Received
|
|
Paid
|
||||
Non-hedging interest rate swaps
|
3.00
|
%
|
|
4.61
|
%
|
|
2.96
|
%
|
|
4.72
|
%
|
|
For the three months ended
September 30, 2016 |
|
For the three months ended
September 30, 2015 |
||||||||||||||||||
|
Average
Balance
|
|
Revenue/
Expense(1)
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Revenue/
Expense(1)
|
|
Yield/
Rate
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities – taxable
|
$
|
26,051
|
|
|
$
|
228
|
|
|
3.47
|
%
|
|
$
|
32,358
|
|
|
$
|
287
|
|
|
3.52
|
%
|
Securities – non-taxable
(2)
|
564
|
|
|
8
|
|
|
5.82
|
%
|
|
1,162
|
|
|
17
|
|
|
5.80
|
%
|
||||
Federal funds sold and securities purchased under resale agreements
|
369,215
|
|
|
455
|
|
|
0.49
|
%
|
|
308,822
|
|
|
193
|
|
|
0.25
|
%
|
||||
Deposits in other banks
|
3,192,141
|
|
|
4,080
|
|
|
0.51
|
%
|
|
2,537,033
|
|
|
1,616
|
|
|
0.25
|
%
|
||||
Loans held for sale
|
430,869
|
|
|
3,662
|
|
|
3.38
|
%
|
|
570
|
|
|
6
|
|
|
4.18
|
|
||||
Loans held for investment, mortgage finance
|
4,658,804
|
|
|
36,655
|
|
|
3.13
|
%
|
|
3,981,731
|
|
|
30,427
|
|
|
3.03
|
%
|
||||
Loans held for investment
|
12,591,561
|
|
|
137,407
|
|
|
4.34
|
%
|
|
11,302,248
|
|
|
121,316
|
|
|
4.26
|
%
|
||||
Less allowance for loan losses
|
168,086
|
|
|
—
|
|
|
—
|
|
|
118,543
|
|
|
—
|
|
|
—
|
|
||||
Loans held for investment, net of allowance for loan losses
|
17,082,279
|
|
|
174,062
|
|
|
4.05
|
%
|
|
15,165,436
|
|
|
151,743
|
|
|
3.97
|
%
|
||||
Total earning assets
|
21,101,119
|
|
|
182,495
|
|
|
3.44
|
%
|
|
18,045,381
|
|
|
153,862
|
|
|
3.38
|
%
|
||||
Cash and other assets
|
588,440
|
|
|
|
|
|
|
481,378
|
|
|
|
|
|
||||||||
Total assets
|
$
|
21,689,559
|
|
|
|
|
|
|
$
|
18,526,759
|
|
|
|
|
|
||||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transaction deposits
|
$
|
2,301,362
|
|
|
$
|
1,960
|
|
|
0.34
|
%
|
|
$
|
1,754,940
|
|
|
$
|
763
|
|
|
0.17
|
%
|
Savings deposits
|
6,177,681
|
|
|
6,228
|
|
|
0.40
|
%
|
|
5,858,381
|
|
|
4,616
|
|
|
0.31
|
%
|
||||
Time deposits
|
501,701
|
|
|
763
|
|
|
0.61
|
%
|
|
536,531
|
|
|
723
|
|
|
0.53
|
%
|
||||
Deposits in foreign branches
|
—
|
|
|
—
|
|
|
—
|
%
|
|
179,731
|
|
|
138
|
|
|
0.30
|
%
|
||||
Total interest-bearing deposits
|
8,980,744
|
|
|
8,951
|
|
|
0.40
|
%
|
|
8,329,583
|
|
|
6,240
|
|
|
0.30
|
%
|
||||
Other borrowings
|
1,607,613
|
|
|
1,860
|
|
|
0.46
|
%
|
|
1,459,864
|
|
|
734
|
|
|
0.20
|
%
|
||||
Subordinated notes
|
280,895
|
|
|
4,191
|
|
|
5.94
|
%
|
|
280,532
|
|
|
4,191
|
|
|
5.93
|
%
|
||||
Trust preferred subordinated debentures
|
113,406
|
|
|
752
|
|
|
2.64
|
%
|
|
113,406
|
|
|
643
|
|
|
2.25
|
%
|
||||
Total interest-bearing liabilities
|
10,982,658
|
|
|
15,754
|
|
|
0.57
|
%
|
|
10,183,385
|
|
|
11,808
|
|
|
0.46
|
%
|
||||
Demand deposits
|
8,849,725
|
|
|
|
|
|
|
6,621,159
|
|
|
|
|
|
||||||||
Other liabilities
|
135,141
|
|
|
|
|
|
|
152,154
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
1,722,035
|
|
|
|
|
|
|
1,570,061
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
21,689,559
|
|
|
|
|
|
|
$
|
18,526,759
|
|
|
|
|
|
||||||
Net interest income
(2)
|
|
|
$
|
166,741
|
|
|
|
|
|
|
$
|
142,054
|
|
|
|
||||||
Net interest margin
|
|
|
|
|
3.14
|
%
|
|
|
|
|
|
3.12
|
%
|
||||||||
Net interest spread
|
|
|
|
|
2.87
|
%
|
|
|
|
|
|
2.92
|
%
|
||||||||
Loans held for investment spread
|
|
|
|
|
3.83
|
%
|
|
|
|
|
|
3.80
|
%
|
(1)
|
The loan averages include non-accrual loans and are stated net of unearned income.
|
(2)
|
Taxable equivalent rates used where applicable.
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
For the nine months ended
September 30, 2016 |
|
For the nine months ended
September 30, 2015 |
||||||||||||||||||
|
Average
Balance
|
|
Revenue/
Expense(1)
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Revenue/
Expense(1)
|
|
Yield/
Rate
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities – taxable
|
$
|
27,160
|
|
|
$
|
722
|
|
|
3.55
|
%
|
|
$
|
34,844
|
|
|
$
|
930
|
|
|
3.57
|
%
|
Securities – non-taxable(2)
|
629
|
|
|
27
|
|
|
5.74
|
%
|
|
1,785
|
|
|
75
|
|
|
5.62
|
%
|
||||
Federal funds sold and securities purchased under resale agreements
|
328,971
|
|
|
1,209
|
|
|
0.49
|
%
|
|
234,033
|
|
|
427
|
|
|
0.24
|
%
|
||||
Deposits in other banks
|
2,905,251
|
|
|
11,115
|
|
|
0.51
|
%
|
|
2,222,006
|
|
|
4,203
|
|
|
0.25
|
%
|
||||
Loans held for sale
|
238,987
|
|
|
6,106
|
|
|
3.41
|
%
|
|
192
|
|
|
6
|
|
|
4.18
|
%
|
||||
Loans held for investment, mortgage finance
|
4,266,573
|
|
|
99,666
|
|
|
3.12
|
%
|
|
4,101,576
|
|
|
91,831
|
|
|
2.99
|
%
|
||||
Loans held for investment
|
12,260,752
|
|
|
395,901
|
|
|
4.31
|
%
|
|
10,918,080
|
|
|
350,692
|
|
|
4.29
|
%
|
||||
Less allowance for loan losses
|
157,880
|
|
|
—
|
|
|
—
|
|
|
109,621
|
|
|
—
|
|
|
—
|
|
||||
Loans held for investment, net of allowance for loan losses
|
16,369,445
|
|
|
495,567
|
|
|
4.04
|
%
|
|
14,910,035
|
|
|
442,523
|
|
|
3.97
|
%
|
||||
Total earning assets
|
19,870,443
|
|
|
514,746
|
|
|
3.46
|
%
|
|
17,402,895
|
|
|
448,164
|
|
|
3.44
|
%
|
||||
Cash and other assets
|
546,553
|
|
|
|
|
|
|
474,181
|
|
|
|
|
|
||||||||
Total assets
|
$
|
20,416,996
|
|
|
|
|
|
|
$
|
17,877,076
|
|
|
|
|
|
||||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transaction deposits
|
$
|
2,171,776
|
|
|
$
|
5,085
|
|
|
0.31
|
%
|
|
$
|
1,521,657
|
|
|
$
|
1,665
|
|
|
0.15
|
%
|
Savings deposits
|
6,299,965
|
|
|
19,441
|
|
|
0.41
|
%
|
|
5,786,547
|
|
|
13,368
|
|
|
0.31
|
%
|
||||
Time deposits
|
499,366
|
|
|
2,217
|
|
|
0.59
|
%
|
|
500,590
|
|
|
1,886
|
|
|
0.50
|
%
|
||||
Deposits in foreign branches
|
—
|
|
|
—
|
|
|
—
|
%
|
|
242,874
|
|
|
591
|
|
|
0.33
|
%
|
||||
Total interest-bearing deposits
|
8,971,107
|
|
|
26,743
|
|
|
0.40
|
%
|
|
8,051,668
|
|
|
17,510
|
|
|
0.29
|
%
|
||||
Other borrowings
|
1,455,888
|
|
|
4,628
|
|
|
0.25
|
%
|
|
1,400,523
|
|
|
1,821
|
|
|
0.17
|
%
|
||||
Subordinated notes
|
280,805
|
|
|
12,573
|
|
|
5.98
|
%
|
|
280,442
|
|
|
12,573
|
|
|
5.99
|
%
|
||||
Trust preferred subordinated debentures
|
113,406
|
|
|
2,203
|
|
|
2.59
|
%
|
|
113,406
|
|
|
1,892
|
|
|
2.23
|
%
|
||||
Total interest bearing liabilities
|
10,821,206
|
|
|
46,147
|
|
|
0.55
|
%
|
|
9,846,039
|
|
|
33,796
|
|
|
0.46
|
%
|
||||
Demand deposits
|
7,786,562
|
|
|
|
|
|
|
6,343,195
|
|
|
|
|
|
||||||||
Other liabilities
|
132,506
|
|
|
|
|
|
|
155,466
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
1,676,722
|
|
|
|
|
|
|
1,532,376
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
20,416,996
|
|
|
|
|
|
|
$
|
17,877,076
|
|
|
|
|
|
||||||
Net interest income(2)
|
|
|
$
|
468,599
|
|
|
|
|
|
|
$
|
414,368
|
|
|
|
||||||
Net interest margin
|
|
|
|
|
3.15
|
%
|
|
|
|
|
|
3.18
|
%
|
||||||||
Net interest spread
|
|
|
|
|
2.91
|
%
|
|
|
|
|
|
2.98
|
%
|
||||||||
Loans held for investment spread
|
|
|
|
|
3.82
|
%
|
|
|
|
|
|
3.80
|
%
|
(1)
|
The loan averages include non-accrual loans and are stated net of unearned income.
|
(2)
|
Taxable equivalent rates used where applicable.
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Deterioration of the credit quality of our loan portfolio or declines in the value of collateral related to external factors such as commodity prices or interest rates, increased default rates and loan losses or adverse changes in the industry concentrations of our loan portfolio.
|
•
|
Changes in the U.S. economy in general or the Texas economy specifically resulting in deterioration of credit quality or reduced demand for credit or other financial services we offer, including declines and volatility in oil and gas prices.
|
•
|
Changing economic conditions or other developments adversely affecting our commercial, entrepreneurial and professional customers.
|
•
|
Changes in the value of commercial and residential real estate securing our loans or in the demand for credit to support the purchase and ownership of such assets.
|
•
|
The failure to correctly assess and model the assumptions supporting our allowance for loan losses, causing it to become inadequate in the event of decreases in loan quality and increases in charge-offs.
|
•
|
Adverse changes in economic or market conditions, or our operating performance, which could cause access to capital market transactions and other sources of funding to become more difficult to obtain on terms and conditions that are acceptable to us.
|
•
|
The inadequacy of our available funds to meet our deposit, debt and other obligations as they become due, or our failure to maintain our capital ratios as a result of adverse changes in our operating performance or financial condition, or changes in applicable regulations or regulator interpretation of regulations impacting our business or the characterization or risk weight of our assets.
|
•
|
The failure to effectively balance our funding sources with cash demands by depositors and borrowers.
|
•
|
The failure to effectively manage our interest rate risk resulting from unexpectedly large or sudden changes in interest rates or rate or maturity imbalances in our assets and liabilities.
|
•
|
The failure to successfully expand into new markets, develop and launch new lines of business or new products and services within the expected timeframes and budgets or to successfully manage the risks related to the development and implementation of these new businesses, products or services.
|
•
|
The failure to attract and retain key personnel or the loss of key individuals or groups of employees.
|
•
|
The failure to manage our information systems risk or to prevent cyber attacks against us or our third party vendors.
|
•
|
Legislative and regulatory changes imposing further restrictions and costs on our business, a failure to remain well capitalized or well managed or regulatory enforcement actions against us.
|
•
|
Adverse changes in economic or business conditions that impact the financial markets or our customers.
|
•
|
Increased or more effective competition from banks and other financial service providers in our markets.
|
•
|
Uncertainty in the pricing of mortgage loans that we purchase, and later sell or securitize, as well as competition for the mortgage servicing rights ("MSRs") related to these loans and related interest rate and market risk resulting from retaining MSRs.
|
•
|
Material failures of our accounting estimates and risk management processes based on management judgment, or the supporting analytical and forecasting models.
|
•
|
Failure of our risk management strategies and procedures, including failure or circumvention of our controls.
|
•
|
An increase in the incidence or severity of fraud, illegal payments, security breaches and other illegal acts impacting our Bank and our customers.
|
•
|
Structural changes in the markets for origination, sale and servicing of residential mortgages.
|
•
|
Unavailability of funds obtained from capital transactions or from our Bank to fund our obligations.
|
•
|
Failures of counterparties or third party vendors to perform their obligations.
|
•
|
Environmental liability associated with properties related to our lending activities.
|
•
|
Severe weather, natural disasters, acts of war or terrorism and other external events.
|
•
|
Incurrence of material costs and liabilities associated with legal and regulatory proceedings and related matters with respect to the financial services industry, including those directly involving us or our Bank.
|
|
Three months ended
September 30, 2016/2015
|
|
Nine months ended
September 30, 2016/2015
|
||||||||||||||||||||
|
Net
|
|
Change Due To(1)
|
|
Net
|
|
Change Due To(1)
|
||||||||||||||||
|
Change
|
|
Volume
|
|
Yield/Rate
|
|
Change
|
|
Volume
|
|
Yield/Rate
|
||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities
(2)
|
$
|
(68
|
)
|
|
$
|
(65
|
)
|
|
$
|
(3
|
)
|
|
$
|
(256
|
)
|
|
$
|
(253
|
)
|
|
$
|
(3
|
)
|
Loans held for sale
|
3,656
|
|
|
4,518
|
|
|
(862
|
)
|
|
6,100
|
|
|
7,466
|
|
|
(1,366
|
)
|
||||||
Loans held for investment, mortgage finance loans
|
6,228
|
|
|
5,092
|
|
|
1,136
|
|
|
7,835
|
|
|
3,738
|
|
|
4,097
|
|
||||||
Loans held for investment
|
16,091
|
|
|
13,558
|
|
|
2,533
|
|
|
45,209
|
|
|
43,478
|
|
|
1,731
|
|
||||||
Federal funds sold
|
262
|
|
|
38
|
|
|
224
|
|
|
782
|
|
|
173
|
|
|
609
|
|
||||||
Deposits in other banks
|
2,464
|
|
|
413
|
|
|
2,051
|
|
|
6,912
|
|
|
1,295
|
|
|
5,617
|
|
||||||
Total
|
28,633
|
|
|
23,554
|
|
|
5,079
|
|
|
66,582
|
|
|
55,897
|
|
|
10,685
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Transaction deposits
|
1,197
|
|
|
235
|
|
|
962
|
|
|
3,420
|
|
|
712
|
|
|
2,708
|
|
||||||
Savings deposits
|
1,612
|
|
|
252
|
|
|
1,360
|
|
|
6,073
|
|
|
1,189
|
|
|
4,884
|
|
||||||
Time deposits
|
40
|
|
|
(39
|
)
|
|
79
|
|
|
331
|
|
|
(5
|
)
|
|
336
|
|
||||||
Deposits in foreign branches
|
(138
|
)
|
|
(138
|
)
|
|
—
|
|
|
(591
|
)
|
|
(591
|
)
|
|
—
|
|
||||||
Borrowed funds
|
1,126
|
|
|
74
|
|
|
1,052
|
|
|
2,807
|
|
|
72
|
|
|
2,735
|
|
||||||
Long-term debt
|
109
|
|
|
—
|
|
|
109
|
|
|
311
|
|
|
—
|
|
|
311
|
|
||||||
Total
|
3,946
|
|
|
384
|
|
|
3,562
|
|
|
12,351
|
|
|
1,377
|
|
|
10,974
|
|
||||||
Net interest income
|
$
|
24,687
|
|
|
$
|
23,170
|
|
|
$
|
1,517
|
|
|
$
|
54,231
|
|
|
$
|
54,520
|
|
|
$
|
(289
|
)
|
(1)
|
Changes attributable to both volume and yield/rate are allocated to both volume and yield/rate on an equal basis.
|
(2)
|
Taxable equivalent rates are used where applicable and assume a 35% tax rate.
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Service charges on deposit accounts
|
$
|
2,880
|
|
|
$
|
2,096
|
|
|
$
|
7,401
|
|
|
$
|
6,339
|
|
Trust fee income
|
1,113
|
|
|
1,222
|
|
|
3,024
|
|
|
3,709
|
|
||||
Bank owned life insurance (BOLI) income
|
520
|
|
|
484
|
|
|
1,592
|
|
|
1,444
|
|
||||
Brokered loan fees
|
7,581
|
|
|
4,885
|
|
|
18,090
|
|
|
14,394
|
|
||||
Swap fees
|
918
|
|
|
254
|
|
|
2,330
|
|
|
3,275
|
|
||||
Other
|
3,704
|
|
|
2,439
|
|
|
9,508
|
|
|
7,257
|
|
||||
Total non-interest income
|
$
|
16,716
|
|
|
$
|
11,380
|
|
|
$
|
41,945
|
|
|
$
|
36,418
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Salaries and employee benefits
|
$
|
56,722
|
|
|
$
|
48,583
|
|
|
$
|
162,904
|
|
|
$
|
142,611
|
|
Net occupancy expense
|
5,634
|
|
|
5,874
|
|
|
17,284
|
|
|
17,373
|
|
||||
Marketing
|
4,292
|
|
|
3,999
|
|
|
12,686
|
|
|
12,142
|
|
||||
Legal and professional
|
5,333
|
|
|
5,510
|
|
|
16,883
|
|
|
15,176
|
|
||||
Communications and technology
|
6,620
|
|
|
5,180
|
|
|
19,228
|
|
|
15,905
|
|
||||
FDIC insurance assessment
|
6,355
|
|
|
4,489
|
|
|
17,867
|
|
|
12,490
|
|
||||
Allowance and other carrying costs for OREO
|
269
|
|
|
1
|
|
|
765
|
|
|
16
|
|
||||
Other
(1)
|
9,574
|
|
|
8,052
|
|
|
28,257
|
|
|
23,768
|
|
||||
Total non-interest expense
|
$
|
94,799
|
|
|
$
|
81,688
|
|
|
$
|
275,874
|
|
|
$
|
239,481
|
|
(1)
|
Other expense includes such items as courier expenses, regulatory assessments other than FDIC insurance, due from bank charges and other general operating expenses, none of which account for 1% or more of total interest income and non-interest income.
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
Commercial
|
$
|
7,053,979
|
|
|
$
|
6,672,631
|
|
Mortgage finance
|
4,961,159
|
|
|
4,966,276
|
|
||
Construction
|
2,150,453
|
|
|
1,851,717
|
|
||
Real estate
|
3,391,831
|
|
|
3,139,197
|
|
||
Consumer
|
27,554
|
|
|
25,323
|
|
||
Leases
|
96,878
|
|
|
113,996
|
|
||
Gross loans held for investment
|
17,681,854
|
|
|
16,769,140
|
|
||
Deferred income (net of direct origination costs)
|
(58,301
|
)
|
|
(57,190
|
)
|
||
Allowance for loan losses
|
(180,436
|
)
|
|
(141,111
|
)
|
||
Total loans held for investment, net
|
$
|
17,443,117
|
|
|
$
|
16,570,839
|
|
|
Nine months ended
September 30, 2016 |
|
Year ended
December 31, 2015 |
|
Nine months ended
September 30, 2015 |
||||||
Allowance for loan losses:
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
141,111
|
|
|
$
|
100,954
|
|
|
$
|
100,954
|
|
Loans charged-off:
|
|
|
|
|
|
||||||
Commercial
|
34,232
|
|
|
16,254
|
|
|
11,278
|
|
|||
Real estate
|
528
|
|
|
389
|
|
|
346
|
|
|||
Consumer
|
40
|
|
|
62
|
|
|
62
|
|
|||
Leases
|
—
|
|
|
25
|
|
|
25
|
|
|||
Total charge-offs
|
34,800
|
|
|
16,730
|
|
|
11,711
|
|
|||
Recoveries:
|
|
|
|
|
|
||||||
Commercial
|
7,829
|
|
|
4,944
|
|
|
2,098
|
|
|||
Construction
|
34
|
|
|
400
|
|
|
28
|
|
|||
Real estate
|
36
|
|
|
33
|
|
|
397
|
|
|||
Consumer
|
16
|
|
|
173
|
|
|
19
|
|
|||
Leases
|
71
|
|
|
38
|
|
|
27
|
|
|||
Total recoveries
|
7,986
|
|
|
5,588
|
|
|
2,569
|
|
|||
Net charge-offs
|
26,814
|
|
|
11,142
|
|
|
9,142
|
|
|||
Provision for loan losses
|
66,139
|
|
|
51,299
|
|
|
38,728
|
|
|||
Ending balance
|
$
|
180,436
|
|
|
$
|
141,111
|
|
|
$
|
130,540
|
|
Allowance for off-balance sheet credit losses:
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
9,011
|
|
|
$
|
7,060
|
|
|
$
|
7,060
|
|
Provision for off-balance sheet credit losses
|
1,861
|
|
|
1,951
|
|
|
522
|
|
|||
Ending balance
|
$
|
10,872
|
|
|
$
|
9,011
|
|
|
$
|
7,582
|
|
Total allowance for credit losses
|
$
|
191,308
|
|
|
$
|
150,122
|
|
|
$
|
138,122
|
|
Total provision for credit losses
|
$
|
68,000
|
|
|
$
|
53,250
|
|
|
$
|
39,250
|
|
Allowance for loan losses to LHI
|
1.02
|
%
|
|
0.84
|
%
|
|
0.82
|
%
|
|||
Allowance for loan losses to LHI excluding mortgage finance loans
|
1.42
|
%
|
|
1.20
|
%
|
|
1.13
|
%
|
|||
Net charge-offs to average LHI
(1)
|
0.22
|
%
|
|
0.07
|
%
|
|
0.08
|
%
|
|||
Net charge-offs to average LHI excluding mortgage finance loans
(1)
|
0.29
|
%
|
|
0.10
|
%
|
|
0.11
|
%
|
|||
Total provision for credit losses to average LHI
|
0.55
|
%
|
|
0.35
|
%
|
|
0.35
|
%
|
|||
Total provision for credit losses to average LHI excluding mortgage finance loans
|
0.74
|
%
|
|
0.48
|
%
|
|
0.49
|
%
|
|||
Recoveries to total charge-offs
|
22.95
|
%
|
|
33.40
|
%
|
|
21.94
|
%
|
|||
Allowance for off-balance sheet credit losses to off-balance sheet credit commitments
|
0.19
|
%
|
|
0.16
|
%
|
|
0.14
|
%
|
|||
Combined allowance for credit losses to LHI
|
1.09
|
%
|
|
0.90
|
%
|
|
0.87
|
%
|
|||
Combined allowance for credit losses to LHI excluding mortgage finance loans
|
1.51
|
%
|
|
1.28
|
%
|
|
1.19
|
%
|
|||
Non-performing assets:
|
|
|
|
|
|
||||||
Non-accrual loans
(4)
|
$
|
169,113
|
|
|
$
|
179,788
|
|
|
$
|
109,674
|
|
OREO
(3)
|
19,009
|
|
|
278
|
|
|
187
|
|
|||
Other repossessed assets
|
—
|
|
|
230
|
|
|
—
|
|
|||
Total
|
$
|
188,122
|
|
|
$
|
180,296
|
|
|
$
|
109,861
|
|
Restructured loans
|
$
|
—
|
|
|
$
|
249
|
|
|
$
|
249
|
|
Loans past due 90 days and still accruing
(2)
|
9,706
|
|
|
7,013
|
|
|
7,558
|
|
|||
Allowance for loan losses to non-accrual loans
|
1.1x
|
|
|
0.8x
|
|
|
1.2x
|
|
(1)
|
Interim period ratios are annualized.
|
(2)
|
At
September 30, 2016
,
December 31, 2015
and
September 30, 2015
, loans past due 90 days and still accruing include premium finance loans of $7.7 million, $6.6 million and $6.2 million, respectively. These loans are generally secured by obligations of insurance carriers to refund premiums on cancelled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date.
|
(3)
|
We did not have a valuation allowance recorded against the OREO balance at
September 30, 2016
,
December 31, 2015
or
September 30, 2015
.
|
(4)
|
As of
September 30, 2016
,
December 31, 2015
and
September 30, 2015
, non-accrual loans included
$19.7 million
, $24.9 million and $26.1 million, respectively, in loans that met the criteria for restructured.
|
|
September 30,
2016 |
|
December 31,
2015 |
|
September 30,
2015 |
||||||
|
|
|
|
|
|
||||||
Non-accrual loans(1)
|
|
|
|
|
|
||||||
Commercial
|
|
|
|
|
|
||||||
Oil and gas properties
|
$
|
143,372
|
|
|
$
|
104,179
|
|
|
$
|
32,476
|
|
Assets of the borrowers
|
17,335
|
|
|
30,360
|
|
|
43,870
|
|
|||
Inventory
|
2,020
|
|
|
2,099
|
|
|
2,130
|
|
|||
Other
|
3,606
|
|
|
2,020
|
|
|
1,722
|
|
|||
Total commercial
|
166,333
|
|
|
138,658
|
|
|
80,198
|
|
|||
Construction
|
|
|
|
|
|
||||||
Commercial buildings
|
—
|
|
|
16,667
|
|
|
16,749
|
|
|||
Unimproved land
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other
|
159
|
|
|
—
|
|
|
—
|
|
|||
Total construction
|
159
|
|
|
16,667
|
|
|
16,749
|
|
|||
Real estate
|
|
|
|
|
|
||||||
Commercial property
|
2,087
|
|
|
2,867
|
|
|
2,909
|
|
|||
Unimproved land and/or developed residential lots
|
—
|
|
|
3,576
|
|
|
3,591
|
|
|||
Farm land
|
—
|
|
|
12,486
|
|
|
—
|
|
|||
Other
|
334
|
|
|
383
|
|
|
528
|
|
|||
Total real estate
|
2,421
|
|
|
19,312
|
|
|
7,028
|
|
|||
Consumer
|
200
|
|
|
—
|
|
|
—
|
|
|||
Leases
|
—
|
|
|
5,151
|
|
|
5,699
|
|
|||
Total non-accrual loans
|
169,113
|
|
|
179,788
|
|
|
109,674
|
|
|||
Repossessed assets:
|
|
|
|
|
|
||||||
OREO(2)
|
19,009
|
|
|
278
|
|
|
187
|
|
|||
Other repossessed assets
|
—
|
|
|
230
|
|
|
—
|
|
|||
Total non-performing assets
|
$
|
188,122
|
|
|
$
|
180,296
|
|
|
$
|
109,861
|
|
(1)
|
As of
September 30, 2016
,
December 31, 2015
and
September 30, 2015
, non-accrual loans included
$19.7 million
, $24.9 million and $26.1 million, respectively, in loans that met the criteria for restructured.
|
(2)
|
We did not have a valuation allowance recorded against the OREO balance at
September 30, 2016
,
December 31, 2015
or
September 30, 2015
.
|
Medical building
|
$
|
17,398
|
|
Oil and gas property
|
$
|
1,141
|
|
Other
|
$
|
470
|
|
Total OREO
|
$
|
19,009
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||
Unpaid principal balance
|
620,207
|
|
|
82,853
|
|
Fair value
|
648,684
|
|
|
86,075
|
|
Fair value over/(under) unpaid principal balance
|
28,477
|
|
|
3,222
|
|
Servicing asset:(1)
|
|
||
Balance, beginning of year
|
$
|
423
|
|
Capitalized servicing rights
|
16,344
|
|
|
Amortization
|
(891
|
)
|
|
Balance, end of period
|
15,876
|
|
|
Valuation allowance:
|
|
||
Balance, beginning of year
|
$
|
—
|
|
Increase in valuation allowance
|
$
|
414
|
|
Balance, end of period
|
$
|
414
|
|
Servicing asset, net(1)
|
$
|
15,462
|
|
Fair value
|
$
|
15,970
|
|
(1)
|
Mortgage servicing rights are reported on the consolidated balance sheets at lower of cost or market. Carrying value and fair value were the same at
December 31, 2015
, respectively.
|
|
September 30, 2016
|
December 31, 2015
|
||
Average discount rates
|
10.09
|
%
|
9.76
|
%
|
Expected prepayment speeds
|
11.18
|
%
|
9.66
|
%
|
Weighted average life, in years
|
6.5
|
|
7.3
|
|
|
September 30,
2016 |
|
December 31,
2015 |
|
September 30,
2015 |
||||||
Federal funds sold and securities purchased under resale agreements
|
$
|
30,000
|
|
|
$
|
55,000
|
|
|
$
|
25,000
|
|
Interest-bearing deposits
|
3,441,074
|
|
|
1,626,374
|
|
|
2,320,192
|
|
|||
Total liquidity assets
|
$
|
3,471,074
|
|
|
$
|
1,681,374
|
|
|
$
|
2,345,192
|
|
|
|
|
|
|
|
||||||
Total liquidity assets as a percent of:
|
|
|
|
|
|
||||||
Total loans held for investment, excluding mortgage finance loans
|
27.8
|
%
|
|
14.3
|
%
|
|
20.3
|
%
|
|||
Total loans held for investment
|
19.5
|
%
|
|
10.1
|
%
|
|
14.8
|
%
|
|||
Total earning assets
|
17.0
|
%
|
|
9.2
|
%
|
|
12.9
|
%
|
|||
Total deposits
|
20.8
|
%
|
|
11.1
|
%
|
|
15.5
|
%
|
|
September 30,
2016 |
|
December 31,
2015 |
|
September 30,
2015 |
||||||
Deposits from core customers
|
$
|
16,383.1
|
|
|
$
|
13,743.8
|
|
|
$
|
13,554.2
|
|
Deposits from core customers as a percent of total deposits
|
90.3
|
%
|
|
91.1
|
%
|
|
89.4
|
%
|
|||
Relationship brokered deposits
|
$
|
1,762.0
|
|
|
$
|
1,340.8
|
|
|
$
|
1,611.1
|
|
Relationship brokered deposits as a percent of total deposits
|
9.7
|
%
|
|
8.9
|
%
|
|
10.6
|
%
|
|||
Traditional brokered deposits
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Traditional brokered deposits as a percent of total deposits
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|||
Average deposits from core customers
(1)
|
$
|
15,058.0
|
|
|
$
|
13,172.6
|
|
|
$
|
12,764.9
|
|
Average deposits from core customers as a percent of total quarterly average deposits
(1)
|
89.9
|
%
|
|
89.4
|
%
|
|
88.7
|
%
|
|||
Average relationship brokered deposits
(1)
|
$
|
1,699.7
|
|
|
$
|
1,566.8
|
|
|
$
|
1,630.0
|
|
Average relationship brokered deposits as a percent of total quarterly average deposits
(1)
|
10.1
|
%
|
|
10.6
|
%
|
|
11.3
|
%
|
|||
Average traditional brokered deposits
(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Average traditional brokered deposits as a percent of total quarterly average deposits
(1)
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
(1)
|
Annual averages presented for
December 31, 2015
.
|
|
|
||
Federal funds purchased
|
$
|
73,768
|
|
Repurchase agreements
|
7,652
|
|
|
FHLB borrowings
|
1,650,000
|
|
|
Line of credit
|
20,000
|
|
|
Total short-term borrowings
|
$
|
1,751,420
|
|
Maximum short-term borrowings outstanding at any month-end during 2016
|
$
|
2,117,280
|
|
|
|
||
FHLB borrowing capacity relating to loans
|
$
|
3,645,669
|
|
FHLB borrowing capacity relating to securities
|
1,867
|
|
|
Total FHLB borrowing capacity
|
$
|
3,647,536
|
|
Unused Federal funds lines available from commercial banks
|
$
|
1,161,000
|
|
|
|
||
Subordinated notes
|
$
|
280,954
|
|
Trust preferred subordinated debentures
|
113,406
|
|
|
Total long-term borrowings
|
$
|
394,360
|
|
|
Within One
Year
|
|
After One but
Within Three
Years
|
|
After Three but
Within Five
Years
|
|
After Five
Years
|
|
Total
|
||||||||||
Deposits without a stated maturity
|
$
|
17,657,225
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,657,225
|
|
Time deposits
|
462,635
|
|
|
18,628
|
|
|
6,635
|
|
|
—
|
|
|
487,898
|
|
|||||
Federal funds purchased and customer repurchase agreements
|
81,420
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81,420
|
|
|||||
FHLB borrowings
|
1,650,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,650,000
|
|
|||||
Line of credit
|
20,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,000
|
|
|||||
Operating lease obligations
(1)
|
15,665
|
|
|
15,723
|
|
|
43,061
|
|
|
30,681
|
|
|
105,130
|
|
|||||
Subordinated notes
|
—
|
|
|
—
|
|
|
—
|
|
|
280,954
|
|
|
280,954
|
|
|||||
Trust preferred subordinated debentures
|
—
|
|
|
—
|
|
|
—
|
|
|
113,406
|
|
|
113,406
|
|
|||||
Total contractual obligations
|
$
|
19,886,945
|
|
|
$
|
34,351
|
|
|
$
|
49,696
|
|
|
$
|
425,041
|
|
|
$
|
20,396,033
|
|
(1)
|
Non-balance sheet item.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
0-3 mo
Balance
|
|
4-12 mo
Balance
|
|
1-3 yr
Balance
|
|
3+ yr
Balance
|
|
Total
Balance
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities
(1)
|
$
|
8,733
|
|
|
$
|
4,529
|
|
|
2,532
|
|
|
$
|
10,562
|
|
|
$
|
26,356
|
|
|
Total variable loans
|
16,138,644
|
|
|
28,543
|
|
|
22,057
|
|
|
—
|
|
|
16,189,244
|
|
|||||
Total fixed loans
|
398,986
|
|
|
1,146,312
|
|
|
433,124
|
|
|
162,872
|
|
|
2,141,294
|
|
|||||
Total loans
(2)
|
16,537,630
|
|
|
1,174,855
|
|
|
455,181
|
|
|
162,872
|
|
|
18,330,538
|
|
|||||
Total interest sensitive assets
|
$
|
16,546,363
|
|
|
$
|
1,179,384
|
|
|
$
|
457,713
|
|
|
$
|
173,434
|
|
|
$
|
18,356,894
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing customer deposits
|
$
|
8,867,485
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,867,485
|
|
CDs & IRAs
|
204,939
|
|
|
257,696
|
|
|
18,628
|
|
|
6,635
|
|
|
487,898
|
|
|||||
Traditional brokered deposits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total interest-bearing deposits
|
9,072,424
|
|
|
257,696
|
|
|
18,628
|
|
|
6,635
|
|
|
9,355,383
|
|
|||||
Repurchase agreements, Federal funds
purchased, FHLB borrowings, line
of credit
|
1,751,420
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,751,420
|
|
|||||
Subordinated notes
|
—
|
|
|
—
|
|
|
—
|
|
|
280,954
|
|
|
280,954
|
|
|||||
Trust preferred subordinated debentures
|
—
|
|
|
—
|
|
|
—
|
|
|
113,406
|
|
|
113,406
|
|
|||||
Total borrowings
|
1,751,420
|
|
|
—
|
|
|
—
|
|
|
394,360
|
|
|
2,145,780
|
|
|||||
Total interest sensitive liabilities
|
$
|
10,823,844
|
|
|
$
|
257,696
|
|
|
$
|
18,628
|
|
|
$
|
400,995
|
|
|
$
|
11,501,163
|
|
Gap
|
$
|
5,722,519
|
|
|
$
|
921,688
|
|
|
$
|
439,085
|
|
|
$
|
(227,561
|
)
|
|
$
|
—
|
|
Cumulative Gap
|
5,722,519
|
|
|
6,644,207
|
|
|
7,083,292
|
|
|
6,855,731
|
|
|
6,855,731
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits
|
|
|
|
|
|
|
|
|
$
|
8,789,740
|
|
||||||||
Stockholders’ equity
|
|
|
|
|
|
|
|
|
1,725,782
|
|
|||||||||
Total
|
|
|
|
|
|
|
|
|
$
|
10,515,522
|
|
(1)
|
Securities based on fair market value.
|
(2)
|
Loans are stated at gross.
|
|
Anticipated Impact Over the Next Twelve Months as Compared to Most Likely Scenario
|
|
Anticipated Impact Over the Next Twelve Months as Compared to Most Likely Scenario
|
||||||||||||
|
100 bp Increase
|
|
200 bp Increase
|
|
100 bp Increase
|
|
200 bp Increase
|
||||||||
|
September 30, 2016
|
|
September 30, 2015
|
||||||||||||
Change in net interest income
|
$
|
117,094
|
|
|
$
|
241,366
|
|
|
$
|
86,998
|
|
|
$
|
182,672
|
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 6.
|
EXHIBITS
|
/s/ Peter B. Bartholow
|
Peter B. Bartholow
|
Chief Financial Officer
|
(Duly authorized officer and principal financial officer)
|
|
|
Exhibit Number
|
|
10.1*
|
Form of Performance Award Agreement for Executive Officers, filed herewith.
|
31.1
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
|
31.2
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
|
32.1
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished herewith.
|
32.2
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished herewith.
|
101
|
The following materials from Texas Capital Bancshares, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Cash Flows, and (iv) Notes to Consolidated Financial Statements
|
1.
|
Subject to paragraph 4 below, upon the achievement of earnings per share (“
EPS
”) for 2018 as determined by the Committee, the percentage of 40% of the Performance Units that shall vest shall be as follows:
|
EPS
|
% Vested and Payout
|
$[•]
|
50%
|
$[•]
|
75%
|
$[•]
|
100%
|
$[•]
|
125%
|
$[•]
|
150%
|
|
|
3.
|
Subject to paragraph 4 below, upon achievement of a tangible book value annual simple average growth (“
TBV Annual Average Growth
”) for 2016, 2017, and 2018 (measured as of December 31, 2018 by taking the average of each individual year’s tangible book value annual growth; not determined on an aggregate three-year basis) as determined by the Committee, the percentage of 20% of the Performance Units that vest shall be as follows:
|
4.
|
Achievement of the performance goals set forth in paragraphs 1, 2 and 3 of this
Exhibit A
shall be determined by the Committee, in its sole discretion, and shall be subject to the following terms and conditions:
|
a.
|
Payouts between performance levels shall be linear.
|
b.
|
Performance goals only shall be considered achieved if the Committee determines, in its sole discretion, that the following four goals have been met, in addition to the EPS, ROA % and TBV Annual Average Growth goals set forth in paragraphs 1, 2, and 3 of this
Exhibit A
:
|
i.
|
Asset quality: The Company’s asset quality and credit controls are at a level of comparable high performing banks’ asset quality and credit controls;
|
ii.
|
Tangible Capital Ratio: The Company’s tangible capital ratio is at a level that the Committee determines, in its sole discretion, is at a level for solidly capitalized banks;
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iii.
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Efficiency Ratio: The Company’s guidepost efficiency ratio is at 60% or better (excluding from the calculation of the efficiency ratio, the expense reflected in non-interest expense related to valuation of foreclosed real estate, provided that such expenses are included as credit-related costs in determination of ROA above); and
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iv.
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Deposit Growth: At least 100% of the loans held by the Company for investment are supported by core deposits.
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1.
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I have reviewed this quarterly report on Form 10-Q of Texas Capital Bancshares, Inc.;
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2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ C. Keith Cargill
|
C. Keith Cargill
|
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Texas Capital Bancshares, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Peter B. Bartholow
|
Peter B. Bartholow
|
Chief Financial Officer
|
|
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
|
2.
|
The information contained in the Report, fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ C. Keith Cargill
|
C. Keith Cargill
|
Chief Executive Officer
|
Date: October 20, 2016
|
|
1
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
|
2
|
The information contained in the Report, fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Peter B. Bartholow
|
Peter B. Bartholow
|
Chief Financial Officer
|
Date: October 20, 2016
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