þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Maryland
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27-2176993
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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5851 Legacy Circle, Plano, Texas
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75024
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(Address of Principal Executive Offices)
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(Zip Code)
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Name of Each Exchange on Which
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Title of Each Class
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Registered
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Common Stock, par value $0.01 per share
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Nasdaq Global Select Market
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Large accelerated filer
þ
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Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
¨
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(Do not check if a smaller reporting company)
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Document
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Part of Form 10-K
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Portions of the definitive Proxy Statement to be used in conjunction with the Registrant’s Annual Meeting of Shareholders to be held on May 21, 2018.
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Part III
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Page
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Item 1.
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Business
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December 31,
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|||||||||||||||||||||||||||||||||
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2017
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2016
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2015
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2014
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2013
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|||||||||||||||||||||||||
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Amount
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Percent
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Amount
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Percent
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Amount
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Percent
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Amount
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Percent
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Amount
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Percent
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|||||||||||||||
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(Dollars in thousands)
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|||||||||||||||||||||||||||||||||
Loans held for investment:
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|||||||||||||||
Commercial real estate
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$
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3,019,339
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45.41
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%
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$
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2,670,455
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44.03
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%
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$
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2,177,543
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42.98
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%
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$
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1,265,868
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48.07
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%
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$
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1,091,200
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53.23
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%
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Commercial and industrial
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2,093,307
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31.48
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1,971,160
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32.50
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1,612,669
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31.83
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781,824
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29.69
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439,430
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21.43
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|||||
Construction and land
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277,864
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4.18
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294,894
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4.86
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269,708
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5.32
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21,298
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0.81
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30,247
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1.48
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|||||
Consumer real estate
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1,213,434
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18.25
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1,074,923
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17.72
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936,757
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18.49
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524,199
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19.90
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441,226
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21.53
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|||||
Other consumer
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45,506
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0.68
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53,991
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0.89
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69,830
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1.38
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40,491
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1.53
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47,799
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2.33
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Gross loans held for investment, excluding Warehouse Purchase Program
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6,649,450
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100.00
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%
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6,065,423
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100.00
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%
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5,066,507
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100.00
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%
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2,633,680
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100.00
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%
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2,049,902
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100.00
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%
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Net of:
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Deferred costs (fees) and discounts, net
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6,380
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(2,251
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)
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(1,860
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)
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(2,927
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)
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(1,267
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)
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||||||||||
Allowance for loan losses
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(71,301
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)
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(64,576
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)
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(47,093
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)
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(25,549
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)
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(19,358
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)
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Net loans held for investment, excluding Warehouse Purchase Program
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6,584,529
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5,998,596
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5,017,554
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2,605,204
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2,029,277
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Warehouse Purchase Program
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1,154,588
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1,055,341
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1,043,719
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786,416
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673,470
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Total loans held for investment, net
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$
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7,739,117
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$
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7,053,937
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$
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6,061,273
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$
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3,391,620
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$
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2,702,747
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Loans held for sale
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$
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16,707
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$
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21,279
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$
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22,535
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$
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—
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$
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—
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December 31,
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|||||||||||||||||||||||||||||||||
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2017
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2016
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2015
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2014
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2013
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Amount
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Percent
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Amount
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Percent
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Amount
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Percent
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Amount
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Percent
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Amount
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Percent
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(Dollars in thousands)
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Fixed rate loans:
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Commercial real estate
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$
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1,829,829
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27.52
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%
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$
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1,638,656
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27.02
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%
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$
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1,188,884
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23.47
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%
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$
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728,168
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27.65
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%
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$
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564,312
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27.53
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%
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Commercial and industrial
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241,897
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3.64
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212,456
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3.50
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664,057
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13.11
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67,592
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2.57
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76,002
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3.70
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|||||
Construction and land
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58,575
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0.88
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57,287
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0.94
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85,099
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1.68
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5,764
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0.22
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8,948
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0.44
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|||||
Consumer real estate
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657,876
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9.89
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589,051
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9.71
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508,295
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10.03
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337,109
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12.80
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326,122
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15.91
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|||||
Other consumer
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37,888
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0.57
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45,942
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0.76
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58,259
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1.15
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32,257
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1.22
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38,705
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1.89
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|||||
Total fixed rate loans
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2,826,065
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42.50
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2,543,392
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41.93
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2,504,594
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49.44
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1,170,890
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44.46
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1,014,089
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49.47
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|||||
Adjustable rate loans:
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|||||||||||||||
Commercial real estate
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1,189,510
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17.89
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1,031,799
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17.01
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988,659
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19.51
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537,700
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20.42
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526,888
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25.70
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|||||
Commercial and industrial
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1,851,410
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27.84
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1,758,704
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29.00
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948,612
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18.72
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714,232
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27.12
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363,428
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17.73
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|||||
Construction and land
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219,289
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3.30
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|
237,607
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3.92
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|
|
184,609
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|
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3.64
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15,534
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0.59
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21,299
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1.04
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|||||
Consumer real estate
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555,558
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8.36
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485,872
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|
8.01
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428,462
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8.46
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187,090
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7.10
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115,104
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5.62
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|||||
Other consumer
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7,618
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0.11
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8,049
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0.13
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11,571
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|
0.23
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8,234
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0.31
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9,094
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0.44
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|||||
Total adjustable rate loans
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3,823,385
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|
57.50
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3,522,031
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58.07
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|
2,561,913
|
|
|
50.56
|
|
|
1,462,790
|
|
|
55.54
|
|
|
1,035,813
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|
50.53
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|
|||||
Gross loans held for investment, excluding Warehouse Purchase Program
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6,649,450
|
|
|
100.00
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%
|
|
6,065,423
|
|
|
100.00
|
%
|
|
5,066,507
|
|
|
100.00
|
%
|
|
2,633,680
|
|
|
100.00
|
%
|
|
2,049,902
|
|
|
100.00
|
%
|
|||||
Net of:
|
|
|
|
|
|
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|
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|
|
|
|
|
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|
|||||||||||||||
Deferred costs (fees) and discounts, net
|
6,380
|
|
|
|
|
(2,251
|
)
|
|
|
|
(1,860
|
)
|
|
|
|
(2,927
|
)
|
|
|
|
(1,267
|
)
|
|
|
||||||||||
Allowance for loan losses
|
(71,301
|
)
|
|
|
|
(64,576
|
)
|
|
|
|
(47,093
|
)
|
|
|
|
(25,549
|
)
|
|
|
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(19,358
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)
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|
|
||||||||||
Net loans held for investment, excluding Warehouse Purchase Program
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6,584,529
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|
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5,998,596
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|
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5,017,554
|
|
|
|
|
2,605,204
|
|
|
|
|
2,029,277
|
|
|
|
||||||||||
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|
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|
|
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|
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|
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|
|||||||||||||||
Warehouse Purchase Program:
|
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|
|
|
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|
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|
|||||||||||||||
Fixed rate loans
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—
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|
|
—
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%
|
|
—
|
|
|
—
|
%
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|
—
|
|
|
—
|
%
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|
4,147
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|
0.53
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%
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|
234
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|
|
0.03
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%
|
|||||
Adjustable rate loans
|
1,154,588
|
|
|
100.00
|
|
|
1,055,341
|
|
|
100.00
|
|
|
1,043,719
|
|
|
100.00
|
|
|
782,269
|
|
|
99.47
|
|
|
673,236
|
|
|
99.97
|
|
|||||
Total Warehouse Purchase Program
|
1,154,588
|
|
|
100.00
|
%
|
|
1,055,341
|
|
|
100.00
|
%
|
|
1,043,719
|
|
|
100.00
|
%
|
|
786,416
|
|
|
100.00
|
%
|
|
673,470
|
|
|
100.00
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|||||||||||||||
Loans held for investment, net
|
$
|
7,739,117
|
|
|
|
|
$
|
7,053,937
|
|
|
|
|
$
|
6,061,273
|
|
|
|
|
$
|
3,391,620
|
|
|
|
|
$
|
2,702,747
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans held for sale
|
$
|
16,707
|
|
|
|
|
$
|
21,279
|
|
|
|
|
$
|
22,535
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
|
Due During Years Ending December 31,
|
||||||||||||||
(Dollars in thousands)
|
|
2018
1
|
|
2019 - 2022
|
|
2023 and following
|
|
Total
|
||||||||
Commercial and industrial
|
|
$
|
729,367
|
|
|
$
|
1,276,549
|
|
|
$
|
87,391
|
|
|
$
|
2,093,307
|
|
Construction and land
|
|
210,857
|
|
|
39,337
|
|
|
27,670
|
|
|
277,864
|
|
(Dollars in thousands)
|
Maturities after One Year
|
||
Loans with fixed interest rates
|
$
|
174,953
|
|
Loans with floating or adjustable interest rates
|
1,255,994
|
|
|
Loans Delinquent For:
|
|
Total Loans Delinquent 30 Days or More
|
||||||||||||||||||||||||
|
30-89 Days
|
|
90 Days and Over
|
|
|||||||||||||||||||||||
|
Number
|
|
Amount
|
|
Percent of Loan Category
|
|
Number
|
|
Amount
|
|
Percent of Loan Category
|
|
Number
|
|
Amount
|
|
Percent of Loan Category
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||
Commercial real estate
|
4
|
|
$
|
9,414
|
|
|
0.31
|
%
|
|
1
|
|
|
$
|
250
|
|
|
0.01
|
%
|
|
5
|
|
$
|
9,664
|
|
|
0.32
|
%
|
Commercial and industrial
|
20
|
|
1,202
|
|
|
0.06
|
|
|
6
|
|
|
7,350
|
|
|
0.35
|
|
|
26
|
|
8,552
|
|
|
0.41
|
|
|||
Construction and land
|
4
|
|
9,354
|
|
|
3.37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
9,354
|
|
|
3.37
|
|
|||
Consumer real estate
|
165
|
|
19,364
|
|
|
1.60
|
|
|
13
|
|
|
1,367
|
|
|
0.11
|
|
|
178
|
|
20,731
|
|
|
1.71
|
|
|||
Other consumer
|
45
|
|
925
|
|
|
2.03
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
46
|
|
927
|
|
|
2.03
|
|
|||
Total loans
|
238
|
|
$
|
40,259
|
|
|
0.61
|
%
|
|
21
|
|
|
$
|
8,969
|
|
|
0.13
|
%
|
|
259
|
|
$
|
49,228
|
|
|
0.74
|
%
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Nonaccrual loans:
1
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
4,134
|
|
|
$
|
5,195
|
|
|
$
|
11,418
|
|
|
$
|
6,703
|
|
|
$
|
7,604
|
|
Commercial and industrial
|
84,003
|
|
|
86,664
|
|
|
16,877
|
|
|
5,778
|
|
|
5,141
|
|
|||||
Construction and land
|
—
|
|
|
11,385
|
|
|
33
|
|
|
149
|
|
|
—
|
|
|||||
Consumer real estate
|
6,190
|
|
|
7,987
|
|
|
9,781
|
|
|
10,591
|
|
|
8,812
|
|
|||||
Other consumer
|
76
|
|
|
158
|
|
|
107
|
|
|
286
|
|
|
567
|
|
|||||
Total non-performing loans
|
94,403
|
|
|
111,389
|
|
|
38,216
|
|
|
23,507
|
|
|
22,124
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
6,694
|
|
|
10,638
|
|
|
4,784
|
|
|
551
|
|
|
102
|
|
|||||
Construction and land
|
859
|
|
|
194
|
|
|
1,802
|
|
|
—
|
|
|
172
|
|
|||||
Consumer real estate
|
192
|
|
|
—
|
|
|
106
|
|
|
—
|
|
|
204
|
|
|||||
Other consumer
|
687
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Total foreclosed assets
|
8,432
|
|
|
10,838
|
|
|
6,692
|
|
|
551
|
|
|
480
|
|
|||||
Total non-performing assets
|
$
|
102,835
|
|
|
$
|
122,227
|
|
|
$
|
44,908
|
|
|
$
|
24,058
|
|
|
$
|
22,604
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total non-performing assets as a percentage of total assets
2
|
1.13
|
%
|
|
1.46
|
%
|
|
0.58
|
%
|
|
0.58
|
%
|
|
0.64
|
%
|
|||||
Total non-performing loans as a percentage of total loans held for investment, excluding Warehouse Purchase Program loans
2
|
1.42
|
%
|
|
1.84
|
%
|
|
0.75
|
%
|
|
0.89
|
%
|
|
1.08
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Performing troubled debt restructurings:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
145
|
|
|
$
|
154
|
|
|
$
|
161
|
|
|
$
|
702
|
|
|
$
|
—
|
|
Commercial and industrial
|
2
|
|
|
—
|
|
|
30
|
|
|
153
|
|
|
185
|
|
|||||
Construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Consumer real estate
|
600
|
|
|
269
|
|
|
368
|
|
|
204
|
|
|
737
|
|
|||||
Other consumer
|
21
|
|
|
31
|
|
|
46
|
|
|
39
|
|
|
47
|
|
|||||
Total
|
$
|
768
|
|
|
$
|
454
|
|
|
$
|
605
|
|
|
$
|
1,098
|
|
|
$
|
971
|
|
1
|
There were no non-performing or TDR warehouse lines of credit or Warehouse Purchase Program loans for the periods presented.
|
2
|
Purchased credit impaired (PCI) loans, which were acquired in 2012 through the Highlands Bancshares, Inc. ("Highlands") acquisition and in 2015 through the LegacyTexas acquisition, are not considered non-performing loans, and therefore are not included in the numerator of the non-performing loans to total loans ratio, but are included in total loans, which is reflected in the denominator. Loans past due over 90 days that were still accruing interest totaled
$0
,
$141,000
,
$111,000
,
$612,000
and
$266,000
for the years ended
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, respectively, and consisted entirely of PCI loans.
|
|
At December 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(Dollars in thousands)
|
||||||
Doubtful
|
$
|
1,134
|
|
|
$
|
2,880
|
|
Substandard
|
112,632
|
|
|
136,815
|
|
||
Total classified loans
|
113,766
|
|
|
139,695
|
|
||
Foreclosed assets
|
8,432
|
|
|
10,838
|
|
||
Total classified assets
|
$
|
122,198
|
|
|
$
|
150,533
|
|
|
|
|
|
||||
Classified assets as a percentage of equity
|
12.73
|
%
|
|
17.00
|
%
|
||
Classified assets as a percentage of assets
|
1.34
|
|
|
1.80
|
|
||
Classified assets as a percentage of total loans held for investment, excluding Warehouse Purchase Program loans
|
1.84
|
|
|
2.48
|
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Balance at beginning of period
|
$
|
64,576
|
|
|
$
|
47,093
|
|
|
$
|
25,549
|
|
|
$
|
19,358
|
|
|
$
|
18,051
|
|
Charge-offs:
1
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
16
|
|
|
79
|
|
|
167
|
|
|
—
|
|
|
806
|
|
|||||
Commercial and industrial
|
32,846
|
|
|
7,746
|
|
|
3,129
|
|
|
568
|
|
|
607
|
|
|||||
Construction and land
|
418
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
31
|
|
|||||
Consumer real estate
|
96
|
|
|
107
|
|
|
321
|
|
|
237
|
|
|
416
|
|
|||||
Other consumer
|
1,366
|
|
|
927
|
|
|
1,090
|
|
|
605
|
|
|
621
|
|
|||||
Total charge-offs
|
34,742
|
|
|
8,859
|
|
|
4,707
|
|
|
1,461
|
|
|
2,481
|
|
|||||
Recoveries:
1
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
205
|
|
|
21
|
|
|
29
|
|
|
435
|
|
|
—
|
|
|||||
Commercial and industrial
|
405
|
|
|
472
|
|
|
246
|
|
|
94
|
|
|
124
|
|
|||||
Construction and land
|
75
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Consumer real estate
|
42
|
|
|
109
|
|
|
85
|
|
|
38
|
|
|
77
|
|
|||||
Other consumer
|
640
|
|
|
340
|
|
|
426
|
|
|
363
|
|
|
388
|
|
|||||
Total recoveries
|
1,367
|
|
|
942
|
|
|
786
|
|
|
931
|
|
|
589
|
|
|||||
Net charge-offs
|
33,375
|
|
|
7,917
|
|
|
3,921
|
|
|
530
|
|
|
1,892
|
|
|||||
Provision expense
|
40,100
|
|
|
25,400
|
|
|
25,465
|
|
|
6,721
|
|
|
3,199
|
|
|||||
Balance at end of period
|
$
|
71,301
|
|
|
$
|
64,576
|
|
|
$
|
47,093
|
|
|
$
|
25,549
|
|
|
$
|
19,358
|
|
Ratio of net charge-offs during the period to
|
|
|
|
|
|
|
|
|
|
||||||||||
average loans outstanding during the period
|
0.46
|
%
|
|
0.12
|
%
|
|
0.08
|
%
|
|
0.02
|
%
|
|
0.08
|
%
|
|||||
Ratio of net charge-offs during the period to
|
|
|
|
|
|
|
|
|
|
||||||||||
average non-performing assets
|
29.66
|
%
|
|
9.47
|
%
|
|
11.37
|
%
|
|
2.27
|
%
|
|
7.32
|
%
|
|||||
Allowance as a percentage of non-performing loans
2
|
75.53
|
%
|
|
57.97
|
%
|
|
123.23
|
%
|
|
108.69
|
%
|
|
87.50
|
%
|
|||||
Allowance as a percentage of total loans, excluding
|
|
|
|
|
|
|
|
|
|
||||||||||
Warehouse Purchase Program (end of period)
2
|
1.07
|
%
|
|
1.06
|
%
|
|
0.93
|
%
|
|
0.97
|
%
|
|
0.94
|
%
|
1
|
There was no net charge-off activity on Warehouse Purchase Program loans during the periods presented.
|
2
|
PCI loans, which were acquired in 2012 through the Highlands acquisition and in 2015 through the LegacyTexas acquisition, are not considered non-performing loans, and therefore are not included in the numerator of the non-performing loans to total loans ratio, but are included in total loans, which is reflected in the denominator. PCI loans had a carrying value of
$3.6 million
,
$7.0 million
,
$12.0 million
,
$6.6 million
and
$7.4 million
for the years ended
December 31, 2017
,
2016
,
2015
,
2014
and
2013
, respectively.
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||||||
|
Allocated Allowance
|
|
%
1
|
|
Allocated Allowance
|
|
%
1
|
|
Allocated Allowance
|
|
%
1
|
|
Allocated Allowance
|
|
%
1
|
|
Allocated Allowance
|
|
%
1
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||
Commercial real estate
|
$
|
21,587
|
|
|
45.41
|
%
|
|
$
|
18,303
|
|
|
44.03
|
%
|
|
$
|
14,123
|
|
|
42.98
|
%
|
|
$
|
11,830
|
|
|
48.07
|
%
|
|
$
|
10,944
|
|
|
53.23
|
%
|
Commercial and industrial
|
39,005
|
|
|
31.48
|
|
|
35,464
|
|
|
32.50
|
|
|
24,975
|
|
|
31.83
|
|
|
9,068
|
|
|
29.69
|
|
|
4,536
|
|
|
21.43
|
|
|||||
Construction and land
|
4,644
|
|
|
4.18
|
|
|
5,075
|
|
|
4.86
|
|
|
3,013
|
|
|
5.32
|
|
|
174
|
|
|
0.81
|
|
|
212
|
|
|
1.48
|
|
|||||
Consumer real estate
|
4,838
|
|
|
18.25
|
|
|
4,484
|
|
|
17.72
|
|
|
3,992
|
|
|
18.49
|
|
|
4,069
|
|
|
19.90
|
|
|
3,280
|
|
|
21.53
|
|
|||||
Other consumer
|
1,227
|
|
|
0.68
|
|
|
1,250
|
|
|
0.89
|
|
|
990
|
|
|
1.38
|
|
|
408
|
|
|
1.53
|
|
|
386
|
|
|
2.33
|
|
|||||
Total
|
$
|
71,301
|
|
|
100.00
|
%
|
|
$
|
64,576
|
|
|
100.00
|
%
|
|
$
|
47,093
|
|
|
100.00
|
%
|
|
$
|
25,549
|
|
|
100.00
|
%
|
|
$
|
19,358
|
|
|
100.00
|
%
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||||||
|
|
(Dollars in thousands)
|
||||||||||||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency residential mortgage-backed securities
|
|
$
|
191,216
|
|
|
$
|
189,466
|
|
|
$
|
220,744
|
|
|
$
|
218,551
|
|
|
$
|
224,582
|
|
|
$
|
223,848
|
|
Agency commercial mortgage-backed securities
|
|
9,360
|
|
|
9,235
|
|
|
9,422
|
|
|
9,347
|
|
|
9,483
|
|
|
9,417
|
|
||||||
Agency collateralized mortgage obligations
|
|
187,637
|
|
|
184,216
|
|
|
87,959
|
|
|
86,529
|
|
|
22,430
|
|
|
22,314
|
|
||||||
US government and agency securities
|
|
1,590
|
|
|
1,671
|
|
|
2,150
|
|
|
2,251
|
|
|
14,906
|
|
|
15,054
|
|
||||||
Municipal bonds
|
|
35,196
|
|
|
35,129
|
|
|
38,417
|
|
|
37,837
|
|
|
40,512
|
|
|
41,075
|
|
||||||
Total available for sale
|
|
424,999
|
|
|
419,717
|
|
|
358,692
|
|
|
354,515
|
|
|
311,913
|
|
|
311,708
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency residential mortgage-backed securities
|
|
57,334
|
|
|
57,304
|
|
|
74,881
|
|
|
75,211
|
|
|
87,935
|
|
|
89,488
|
|
||||||
Agency commercial mortgage-backed securities
|
|
27,435
|
|
|
27,926
|
|
|
28,023
|
|
|
28,693
|
|
|
24,848
|
|
|
25,697
|
|
||||||
Agency collateralized mortgage obligations
|
|
27,112
|
|
|
27,278
|
|
|
40,707
|
|
|
41,371
|
|
|
59,174
|
|
|
60,206
|
|
||||||
Municipal bonds
|
|
61,628
|
|
|
62,418
|
|
|
66,776
|
|
|
67,706
|
|
|
68,476
|
|
|
71,811
|
|
||||||
Total held to maturity
|
|
173,509
|
|
|
174,926
|
|
|
210,387
|
|
|
212,981
|
|
|
240,433
|
|
|
247,202
|
|
||||||
Total investment securities
|
|
598,508
|
|
|
594,643
|
|
|
569,079
|
|
|
567,496
|
|
|
552,346
|
|
|
558,910
|
|
||||||
FHLB stock and other restricted securities, at cost
|
|
64,790
|
|
|
64,790
|
|
|
43,266
|
|
|
43,266
|
|
|
63,075
|
|
|
63,075
|
|
||||||
Total securities
|
|
$
|
663,298
|
|
|
$
|
659,433
|
|
|
$
|
612,345
|
|
|
$
|
610,762
|
|
|
$
|
615,421
|
|
|
$
|
621,985
|
|
|
1 year or less
|
|
After 1 to 5 years
|
|
After 5 to 10 years
|
|
After 10 years
|
|
Total Securities
|
|||||||||||||||||||||||||||||
|
Amortized Cost
|
|
Weighted Average Yield
|
|
Amortized Cost
|
|
Weighted Average Yield
|
|
Amortized Cost
|
|
Weighted Average Yield
|
|
Amortized Cost
|
|
Weighted Average Yield
|
|
Amortized Cost
|
|
Weighted Average Yield
|
|
Fair Value
|
|||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Agency residential mortgage-backed securities
|
$
|
—
|
|
|
—
|
%
|
|
$
|
9,682
|
|
|
1.26
|
%
|
|
$
|
47,511
|
|
|
1.89
|
%
|
|
$
|
134,023
|
|
|
2.11
|
%
|
|
$
|
191,216
|
|
|
2.01
|
%
|
|
$
|
189,466
|
|
Agency commercial mortgage-backed securities
|
—
|
|
|
—
|
|
|
9,360
|
|
|
1.86
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,360
|
|
|
1.86
|
|
|
9,235
|
|
||||||
Agency residential collateralized mortgage obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,055
|
|
|
2.43
|
|
|
179,582
|
|
|
2.39
|
|
|
187,637
|
|
|
2.39
|
|
|
184,216
|
|
||||||
US government and agency securities
|
90
|
|
|
2.12
|
|
|
—
|
|
|
—
|
|
|
1,500
|
|
|
3.37
|
|
|
—
|
|
|
—
|
|
|
1,590
|
|
|
3.30
|
|
|
1,671
|
|
||||||
Municipal bonds
|
1,436
|
|
|
1.40
|
|
|
12,843
|
|
|
2.21
|
|
|
15,163
|
|
|
2.61
|
|
|
5,754
|
|
|
2.94
|
|
|
35,196
|
|
|
2.47
|
|
|
35,129
|
|
||||||
Total available for sale
|
1,526
|
|
|
1.44
|
|
|
31,885
|
|
|
1.82
|
|
|
72,229
|
|
|
2.14
|
|
|
319,359
|
|
|
2.28
|
|
|
424,999
|
|
|
2.22
|
|
|
419,717
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Agency residential mortgage-backed securities
|
98
|
|
|
4.05
|
|
|
11,105
|
|
|
2.87
|
|
|
21,973
|
|
|
2.78
|
|
|
24,158
|
|
|
2.17
|
|
|
57,334
|
|
|
2.54
|
|
|
57,304
|
|
||||||
Agency commercial mortgage-backed securities
|
—
|
|
|
—
|
|
|
14,574
|
|
|
3.12
|
|
|
12,861
|
|
|
2.49
|
|
|
—
|
|
|
—
|
|
|
27,435
|
|
|
2.82
|
|
|
27,926
|
|
||||||
Agency residential collateralized mortgage obligations
|
96
|
|
|
3.61
|
|
|
1,336
|
|
|
4.26
|
|
|
25,311
|
|
|
2.82
|
|
|
369
|
|
|
(2.56
|
)
|
|
27,112
|
|
|
2.82
|
|
|
27,278
|
|
||||||
Municipal bonds
|
1,365
|
|
|
5.26
|
|
|
10,699
|
|
|
5.37
|
|
|
44,059
|
|
|
4.72
|
|
|
5,505
|
|
|
3.64
|
|
|
61,628
|
|
|
4.75
|
|
|
62,418
|
|
||||||
Total held to maturity
|
1,559
|
|
|
5.08
|
|
|
37,714
|
|
|
3.73
|
|
|
104,204
|
|
|
3.57
|
|
|
30,032
|
|
|
2.39
|
|
|
173,509
|
|
|
3.42
|
|
|
174,926
|
|
||||||
Total investment securities
|
$
|
3,085
|
|
|
3.28
|
%
|
|
$
|
69,599
|
|
|
2.85
|
%
|
|
$
|
176,433
|
|
|
2.99
|
%
|
|
$
|
349,391
|
|
|
2.29
|
%
|
|
$
|
598,508
|
|
|
2.56
|
%
|
|
$
|
594,643
|
|
|
December 31,
|
|||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||
|
Amount
|
|
Percent of Total
|
|
Amount
|
|
Percent of Total
|
|
Amount
|
|
Percent of Total
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Transaction and Savings Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-interest-bearing demand
|
$
|
1,635,622
|
|
|
24.17
|
%
|
|
$
|
1,383,951
|
|
|
21.74
|
%
|
|
$
|
1,170,272
|
|
|
22.38
|
%
|
Interest-bearing demand
|
1,029,375
|
|
|
15.21
|
|
|
903,314
|
|
|
14.19
|
|
|
819,350
|
|
|
15.68
|
|
|||
Savings and money market
|
2,735,296
|
|
|
40.42
|
|
|
2,710,307
|
|
|
42.58
|
|
|
2,209,698
|
|
|
42.28
|
|
|||
Total non-certificates
|
5,400,293
|
|
|
79.80
|
|
|
4,997,572
|
|
|
78.51
|
|
|
4,199,320
|
|
|
80.34
|
|
|||
Certificates:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
0.00-1.99%
|
1,299,530
|
|
|
19.20
|
|
|
1,356,657
|
|
|
21.31
|
|
|
1,006,050
|
|
|
19.25
|
|
|||
2.00-3.99%
|
67,860
|
|
|
1.00
|
|
|
11,226
|
|
|
0.18
|
|
|
21,317
|
|
|
0.41
|
|
|||
4.00-5.99%
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|||
6.00% and over
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|||
Total certificates
|
1,367,390
|
|
|
20.20
|
|
|
1,367,904
|
|
|
21.49
|
|
|
1,027,391
|
|
|
19.66
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total deposits
|
$
|
6,767,683
|
|
|
100.00
|
%
|
|
$
|
6,365,476
|
|
|
100.00
|
%
|
|
$
|
5,226,711
|
|
|
100.00
|
%
|
|
Maturity
|
|
|
||||||||||||||||
|
3 Months
or less
|
|
Over 3 to 6
Months
|
|
Over 6 to 12
Months
|
|
Over 12
Months
|
|
Total
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Certificates less than $100,000
|
$
|
23,975
|
|
|
$
|
23,378
|
|
|
$
|
30,527
|
|
|
$
|
49,782
|
|
|
$
|
127,662
|
|
Certificates of $100,000 or more
|
65,640
|
|
|
89,104
|
|
|
82,163
|
|
|
245,323
|
|
|
482,230
|
|
|||||
Public funds¹
|
154,157
|
|
|
123,855
|
|
|
267,303
|
|
|
212,183
|
|
|
757,498
|
|
|||||
Total certificates
|
$
|
243,772
|
|
|
$
|
236,337
|
|
|
$
|
379,993
|
|
|
$
|
507,288
|
|
|
$
|
1,367,390
|
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(Dollars in thousands)
|
||||||||||
Maximum balance:
|
|
|
|
|
|
||||||
FHLB advances
|
$
|
1,151,682
|
|
|
$
|
1,609,438
|
|
|
$
|
1,439,904
|
|
Repurchase agreements
|
87,607
|
|
|
86,691
|
|
|
89,772
|
|
|||
Subordinated debt and other borrowings
|
134,522
|
|
|
134,103
|
|
|
85,290
|
|
|||
Average balance outstanding:
|
|
|
|
|
|
||||||
FHLB advances
|
$
|
881,279
|
|
|
$
|
1,113,550
|
|
|
$
|
914,077
|
|
Repurchase agreements
|
76,974
|
|
|
69,153
|
|
|
75,271
|
|
|||
Subordinated debt and other borrowings
|
134,294
|
|
|
104,639
|
|
|
24,931
|
|
|
At December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(Dollars in thousands)
|
||||||||||
FHLB advances at end of period
|
$
|
1,043,163
|
|
|
$
|
833,682
|
|
|
$
|
1,439,904
|
|
Repurchase agreements at end of period
|
84,676
|
|
|
86,691
|
|
|
83,269
|
|
|||
Subordinated debt and other borrowings at end of period
|
134,522
|
|
|
134,032
|
|
|
84,992
|
|
|||
Weighted average rate of FHLB advances during the period
|
1.10
|
%
|
|
0.64
|
%
|
|
0.72
|
%
|
|||
Weighted average rate of FHLB advances at end of period
|
1.51
|
%
|
|
0.71
|
%
|
|
0.51
|
%
|
|||
Weighted average rate of repurchase agreements during the period
|
1.64
|
%
|
|
1.22
|
%
|
|
1.18
|
%
|
|||
Weighted average rate of repurchase agreements at end of period
|
1.73
|
%
|
|
0.98
|
%
|
|
1.08
|
%
|
|||
Weighted average rate of subordinated debt and other borrowings during the period
|
5.82
|
%
|
|
5.77
|
%
|
|
4.21
|
%
|
|||
Weighted average rate of subordinated debt and other borrowings at end of period
|
5.26
|
%
|
|
5.20
|
%
|
|
4.95
|
%
|
Item 1A.
|
Risk Factors
|
•
|
We may be exposed to potential asset quality issues or unknown or contingent liabilities of the banks, businesses, assets, and liabilities we acquire. If these issues or liabilities exceed our estimates, our results of operations and financial condition may be materially negatively affected;
|
•
|
Prices at which acquisitions can be made fluctuate with market conditions. We have experienced times during which acquisitions could not be made in specific markets at prices we considered acceptable and expect that we will experience this condition in the future;
|
•
|
The acquisition of other entities generally requires integration of systems, procedures and personnel of the acquired entity into our company to make the transaction economically successful. This integration process is complicated and time consuming and can also be disruptive to the customers of the acquired business. If the integration process is not conducted successfully and with minimal effect on the acquired business and its customers, we may not realize the anticipated economic benefits of particular acquisitions within the expected time frame, and we may lose customers or employees of the acquired business. We may also experience greater than anticipated customer losses even if the integration process is successful.
|
•
|
To the extent our costs of an acquisition exceed the fair value of the net assets acquired, the acquisition will generate goodwill. As discussed below, we are required to assess our goodwill for impairment at least annually, and any goodwill impairment charge could have a material adverse effect on our results of operations and financial condition; and
|
•
|
To finance an acquisition, we may borrow funds, thereby increasing our leverage and diminishing our liquidity, or raise additional capital, which could dilute the interests of our existing stockholders.
|
Item 1B.
|
Unresolved Staff Comments
|
Item 2.
|
Properties
|
Item 3.
|
Legal Proceedings
|
Item 4.
|
Mine Safety Disclosures.
|
Item 5.
|
Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
|
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
|
Market Price Range
|
|
Dividends
|
|
Market Price Range
|
|
Dividends
|
||||||||||||||||
Quarter
|
|
High
|
|
Low
|
|
Declared
|
|
High
|
|
Low
|
|
Declared
|
||||||||||||
First
|
|
$
|
44.19
|
|
|
$
|
38.41
|
|
|
$
|
0.15
|
|
|
$
|
24.26
|
|
|
$
|
17.01
|
|
|
$
|
0.14
|
|
Second
|
|
40.18
|
|
|
35.22
|
|
|
0.15
|
|
|
28.27
|
|
|
17.94
|
|
|
0.14
|
|
||||||
Third
|
|
39.92
|
|
|
34.87
|
|
|
0.15
|
|
|
31.90
|
|
|
25.81
|
|
|
0.15
|
|
||||||
Fourth
|
|
43.03
|
|
|
36.73
|
|
|
0.16
|
|
|
43.81
|
|
|
31.59
|
|
|
0.15
|
|
|
Number of Securities to be Issued upon Exercise of Outstanding Options
|
|
Weighted Average Exercise Price
|
|
Number of Securities Remaining Available for Issuance under Plans
|
|
||||
2007 Equity Incentive Plan
|
879,985
|
|
|
$
|
20.65
|
|
|
—
|
|
1
|
2012 Equity Incentive Plan
|
1,316,758
|
|
|
30.94
|
|
|
—
|
|
1
|
|
2017 Omnibus Incentive Plan
|
10,500
|
|
|
39.10
|
|
|
3,239,500
|
|
2
|
|
Total
|
2,207,243
|
|
|
$
|
26.88
|
|
|
3,239,500
|
|
|
1
|
No further shares are available to be awarded under the 2007 and 2012 Equity Incentive Plans as a result of shareholder approval of the 2017 Omnibus Incentive Plan. However, 26,204 shares may be issued if performance targets set under existing awards are met.
|
2
|
Total number of shares available for issuance, with a fungible share rate of 2.5 to 1 for full-value awards (stock-based awards other than stock options and stock appreciation rights).
|
|
12/31/2012
|
|
|
12/31/2013
|
|
|
12/31/2014
|
|
|
12/31/2015
|
|
|
12/31/2016
|
|
|
12/31/2017
|
|
||||||
LegacyTexas Financial Group, Inc.
|
$
|
100.00
|
|
|
$
|
133.12
|
|
|
$
|
117.85
|
|
|
$
|
126.17
|
|
|
$
|
222.10
|
|
|
$
|
221.12
|
|
Nasdaq Composite-Total Returns
|
100.00
|
|
|
140.12
|
|
|
160.78
|
|
|
171.97
|
|
|
187.22
|
|
|
242.71
|
|
||||||
Morningstar Banks - Regional - US
|
100.00
|
|
|
138.74
|
|
|
149.60
|
|
|
156.82
|
|
|
212.44
|
|
|
231.78
|
|
Item 6.
|
Selected Financial Data
|
|
At and For the Years Ended December 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Selected Financial Condition Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
9,086,196
|
|
|
$
|
8,362,255
|
|
|
$
|
7,691,940
|
|
|
$
|
4,164,114
|
|
|
$
|
3,525,232
|
|
Warehouse Purchase Program loans
|
1,154,588
|
|
|
1,055,341
|
|
|
1,043,719
|
|
|
786,416
|
|
|
673,470
|
|
|||||
Loans receivable, excluding Warehouse Purchase Program loans, net
|
6,584,529
|
|
|
5,998,596
|
|
|
5,017,554
|
|
|
2,605,204
|
|
|
2,029,277
|
|
|||||
Loans held for sale
|
16,707
|
|
|
21,279
|
|
|
22,535
|
|
|
—
|
|
|
—
|
|
|||||
Securities available for sale, at fair value
|
419,717
|
|
|
354,515
|
|
|
311,708
|
|
|
199,699
|
|
|
248,012
|
|
|||||
Securities held to maturity, at amortized cost
|
173,509
|
|
|
210,387
|
|
|
240,433
|
|
|
241,920
|
|
|
294,583
|
|
|||||
FHLB stock and other restricted securities, at cost
|
64,790
|
|
|
43,266
|
|
|
63,075
|
|
|
44,084
|
|
|
34,883
|
|
|||||
Bank-owned life insurance
|
57,684
|
|
|
56,477
|
|
|
55,231
|
|
|
36,193
|
|
|
35,565
|
|
|||||
Deposits
|
6,767,683
|
|
|
6,365,476
|
|
|
5,226,711
|
|
|
2,657,809
|
|
|
2,264,639
|
|
|||||
Borrowings
|
1,262,361
|
|
|
1,054,405
|
|
|
1,608,165
|
|
|
887,907
|
|
|
664,096
|
|
|||||
Shareholders' equity
|
959,874
|
|
|
885,365
|
|
|
804,076
|
|
|
568,223
|
|
|
544,460
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Selected Operations Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total interest income
|
$
|
366,857
|
|
|
$
|
317,352
|
|
|
$
|
262,692
|
|
|
$
|
149,647
|
|
|
$
|
137,089
|
|
Total interest expense
|
55,426
|
|
|
35,083
|
|
|
21,615
|
|
|
16,640
|
|
|
18,869
|
|
|||||
Net interest income
|
311,431
|
|
|
282,269
|
|
|
241,077
|
|
|
133,007
|
|
|
118,220
|
|
|||||
Provision for credit losses
|
39,456
|
|
|
26,900
|
|
|
25,465
|
|
|
6,721
|
|
|
3,199
|
|
|||||
Net interest income after provision for credit losses
|
271,975
|
|
|
255,369
|
|
|
215,612
|
|
|
126,286
|
|
|
115,021
|
|
|||||
Service charges and other fees
|
35,742
|
|
|
36,690
|
|
|
30,936
|
|
|
19,382
|
|
|
18,715
|
|
|||||
Net gain on sale of mortgage loans held for sale
|
7,322
|
|
|
8,225
|
|
|
8,036
|
|
|
—
|
|
|
—
|
|
|||||
Net gain (loss) on securities transactions
|
(39
|
)
|
|
56
|
|
|
203
|
|
|
—
|
|
|
(177
|
)
|
|||||
Other non-interest income
|
557
|
|
|
6,960
|
|
|
5,640
|
|
|
1,361
|
|
|
3,295
|
|
|||||
Total non-interest income
|
43,582
|
|
|
51,931
|
|
|
44,815
|
|
|
20,743
|
|
|
21,833
|
|
|||||
Total non-interest expense
|
160,344
|
|
|
156,377
|
|
|
151,555
|
|
|
98,092
|
|
|
88,877
|
|
|||||
Income before income tax expense
|
155,213
|
|
|
150,923
|
|
|
108,872
|
|
|
48,937
|
|
|
47,977
|
|
|||||
Income tax expense
|
65,719
|
|
|
53,102
|
|
|
37,956
|
|
|
17,659
|
|
|
16,289
|
|
|||||
Net income
|
$
|
89,494
|
|
|
$
|
97,821
|
|
|
$
|
70,916
|
|
|
$
|
31,278
|
|
|
$
|
31,688
|
|
1
|
In 2012, the Company prepaid the quarterly dividend for the first quarter of 2013 in December 2012, distributing an additional $0.10 per common share. Had the dividend been paid in 2013, the dividend payout ratio for the year ended December 31, 2013 would have been 52.83%.
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
December 31, 2017
|
|
December 31, 2016
|
|
Dollar
Change
|
|
Percent
Change
|
|||||||
|
(Dollars in thousands)
|
|||||||||||||
Commercial real estate
|
$
|
3,019,339
|
|
|
$
|
2,670,455
|
|
|
$
|
348,884
|
|
|
13.1
|
%
|
Commercial and industrial
|
2,093,307
|
|
|
1,971,160
|
|
|
122,147
|
|
|
6.2
|
|
|||
Construction and land
|
277,864
|
|
|
294,894
|
|
|
(17,030
|
)
|
|
(5.8
|
)
|
|||
Consumer real estate
|
1,213,434
|
|
|
1,074,923
|
|
|
138,511
|
|
|
12.9
|
|
|||
Other consumer
|
45,506
|
|
|
53,991
|
|
|
(8,485
|
)
|
|
(15.7
|
)
|
|||
Gross loans held for investment, excluding Warehouse Purchase Program loans
|
6,649,450
|
|
|
6,065,423
|
|
|
584,027
|
|
|
9.6
|
|
|||
Warehouse Purchase Program loans
|
1,154,588
|
|
|
1,055,341
|
|
|
99,247
|
|
|
9.4
|
|
|||
Gross loans held for investment
|
7,804,038
|
|
|
7,120,764
|
|
|
683,274
|
|
|
9.6
|
|
|||
Loans held for sale
|
16,707
|
|
|
21,279
|
|
|
(4,572
|
)
|
|
(21.5
|
)
|
|||
Gross loans
|
$
|
7,820,745
|
|
|
$
|
7,142,043
|
|
|
$
|
678,702
|
|
|
9.5
|
%
|
|
December 31, 2017
|
|
December 31, 2016
|
|
Dollar
Change
|
|
Percent
Change
|
|||||||
|
(Dollars in thousands)
|
|||||||||||||
Non-interest-bearing demand
|
$
|
1,635,622
|
|
|
$
|
1,383,951
|
|
|
$
|
251,671
|
|
|
18.2
|
%
|
Interest-bearing demand
|
1,029,375
|
|
|
903,314
|
|
|
126,061
|
|
|
14.0
|
|
|||
Savings and money market
|
2,735,296
|
|
|
2,710,307
|
|
|
24,989
|
|
|
0.9
|
|
|||
Time
|
1,367,390
|
|
|
1,367,904
|
|
|
(514
|
)
|
|
—
|
|
|||
Total deposits
|
$
|
6,767,683
|
|
|
$
|
6,365,476
|
|
|
$
|
402,207
|
|
|
6.3
|
%
|
|
Balance
|
|
Weighted Average Rate
|
|||
|
(Dollars in thousands)
|
|||||
Less than 90 days
|
$
|
828,601
|
|
|
1.21
|
%
|
90 days to less than one year
|
209,153
|
|
|
1.44
|
|
|
One to three years
|
3,245
|
|
|
5.49
|
|
|
After three to five years
|
1,551
|
|
|
5.51
|
|
|
After five years
|
613
|
|
|
5.44
|
|
|
Total
|
1,043,163
|
|
|
1.51
|
%
|
|
December 31, 2017
|
|
December 31, 2016
|
|
Dollar
Change
|
|
Percent
Change
|
|||||||
|
(Dollars in thousands)
|
|||||||||||||
Common stock
|
$
|
481
|
|
|
$
|
479
|
|
|
$
|
2
|
|
|
0.4
|
%
|
Additional paid-in capital
|
603,884
|
|
|
589,408
|
|
|
14,476
|
|
|
2.5
|
|
|||
Retained earnings
|
370,858
|
|
|
310,641
|
|
|
60,217
|
|
|
19.4
|
|
|||
Accumulated other comprehensive income (loss), net
|
(3,429
|
)
|
|
(2,713
|
)
|
|
(716
|
)
|
|
26.4
|
|
|||
Unearned ESOP shares
|
(11,920
|
)
|
|
(12,450
|
)
|
|
530
|
|
|
(4.3
|
)
|
|||
Total shareholders’ equity
|
$
|
959,874
|
|
|
$
|
885,365
|
|
|
$
|
74,509
|
|
|
8.4
|
%
|
|
|
Years Ended December 31,
|
|
Change
|
||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
|
2017 versus 2016
|
|
2016 versus 2015
|
||||||||||||||||
(Dollars in thousands)
|
|
|
|
|
|
|
|
Dollar
|
|
Percent
|
|
Dollar
|
|
Percent
|
||||||||||||
Interest and dividend income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans, including fees
|
|
$
|
347,438
|
|
|
$
|
301,542
|
|
|
$
|
248,665
|
|
|
$
|
45,896
|
|
|
15.2
|
%
|
|
$
|
52,877
|
|
|
21.3
|
%
|
Securities
|
|
13,707
|
|
|
12,306
|
|
|
12,302
|
|
|
1,401
|
|
|
11.4
|
|
|
4
|
|
|
—
|
|
|||||
Interest-bearing deposits in other financial institutions
|
|
4,009
|
|
|
1,878
|
|
|
631
|
|
|
2,131
|
|
|
113.5
|
|
|
1,247
|
|
|
197.6
|
|
|||||
FHLB and FRB stock and other
|
|
1,703
|
|
|
1,626
|
|
|
1,094
|
|
|
77
|
|
|
4.7
|
|
|
532
|
|
|
48.6
|
|
|||||
|
|
$
|
366,857
|
|
|
$
|
317,352
|
|
|
$
|
262,692
|
|
|
$
|
49,505
|
|
|
15.6
|
%
|
|
$
|
54,660
|
|
|
20.8
|
%
|
|
|
Years Ended December 31,
|
|
Change
|
||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
|
2017 versus 2016
|
|
2016 versus 2015
|
||||||||||||||||
(Dollars in thousands)
|
|
|
|
|
|
|
|
Dollar
|
|
Percent
|
|
Dollar
|
|
Percent
|
||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits
|
|
$
|
36,694
|
|
|
$
|
21,034
|
|
|
$
|
13,127
|
|
|
$
|
15,660
|
|
|
74.5
|
%
|
|
$
|
7,907
|
|
|
60.2
|
%
|
FHLB advances
|
|
9,650
|
|
|
7,167
|
|
|
6,552
|
|
|
2,483
|
|
|
34.6
|
|
|
615
|
|
|
9.4
|
|
|||||
Repurchase agreement and other borrowings
|
|
9,082
|
|
|
6,882
|
|
|
1,936
|
|
|
2,200
|
|
|
32.0
|
|
|
4,946
|
|
|
255.5
|
|
|||||
|
|
$
|
55,426
|
|
|
$
|
35,083
|
|
|
$
|
21,615
|
|
|
$
|
20,343
|
|
|
58.0
|
%
|
|
$
|
13,468
|
|
|
62.3
|
%
|
|
Years Ended December 31,
|
|
Change
|
||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017 versus 2016
|
|
2016 versus 2015
|
||||||||||||||||
(Dollars in thousands)
|
|
|
|
|
|
|
Dollar
|
|
Percent
|
|
Dollar
|
|
Percent
|
||||||||||||
Non-interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges and other fees
|
$
|
35,742
|
|
|
$
|
36,690
|
|
|
$
|
30,936
|
|
|
$
|
(948
|
)
|
|
(2.6
|
)%
|
|
$
|
5,754
|
|
|
18.6
|
%
|
Net gain on sale of mortgage loans held for sale
|
7,322
|
|
|
8,225
|
|
|
8,036
|
|
|
(903
|
)
|
|
(11.0
|
)
|
|
189
|
|
|
2.4
|
|
|||||
Bank-owned life insurance income
|
1,727
|
|
|
1,744
|
|
|
1,699
|
|
|
(17
|
)
|
|
(1.0
|
)
|
|
45
|
|
|
2.6
|
|
|||||
Net gain (loss) on securities transactions
|
(39
|
)
|
|
56
|
|
|
203
|
|
|
(95
|
)
|
|
N/M
1
|
|
|
(147
|
)
|
|
N/M
1
|
|
|||||
Gain (loss) on sale and disposition of assets
|
(1,572
|
)
|
|
3,356
|
|
|
873
|
|
|
(4,928
|
)
|
|
N/M
1
|
|
|
2,483
|
|
|
N/M
1
|
|
|||||
Other
|
402
|
|
|
1,860
|
|
|
3,068
|
|
|
(1,458
|
)
|
|
(78.4
|
)
|
|
(1,208
|
)
|
|
(39.4
|
)
|
|||||
|
$
|
43,582
|
|
|
$
|
51,931
|
|
|
$
|
44,815
|
|
|
$
|
(8,349
|
)
|
|
(16.1
|
)%
|
|
$
|
7,116
|
|
|
15.9
|
%
|
|
|
Years Ended December 31,
|
|
Change
|
||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
|
2017 versus 2016
|
|
2016 versus 2015
|
||||||||||||||||
(Dollars in thousands)
|
|
|
|
|
|
|
|
Dollar
|
|
Percent
|
|
Dollar
|
|
Percent
|
||||||||||||
Non-interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries and employee benefits
|
|
$
|
95,136
|
|
|
$
|
92,568
|
|
|
$
|
92,527
|
|
|
$
|
2,568
|
|
|
2.8
|
%
|
|
$
|
41
|
|
|
—
|
%
|
Merger and acquisition costs
|
|
—
|
|
|
—
|
|
|
1,553
|
|
|
—
|
|
|
—
|
|
|
(1,553
|
)
|
|
(100.0
|
)
|
|||||
Advertising
|
|
4,378
|
|
|
3,861
|
|
|
3,773
|
|
|
517
|
|
|
13.4
|
|
|
88
|
|
|
2.3
|
|
|||||
Occupancy and equipment
|
|
14,385
|
|
|
15,007
|
|
|
14,860
|
|
|
(622
|
)
|
|
(4.1
|
)
|
|
147
|
|
|
1.0
|
|
|||||
Outside professional services
|
|
4,889
|
|
|
3,872
|
|
|
3,332
|
|
|
1,017
|
|
|
26.3
|
|
|
540
|
|
|
16.2
|
|
|||||
Regulatory assessments
|
|
4,479
|
|
|
4,948
|
|
|
4,260
|
|
|
(469
|
)
|
|
(9.5
|
)
|
|
688
|
|
|
16.2
|
|
|||||
Data processing
|
|
16,796
|
|
|
14,974
|
|
|
11,278
|
|
|
1,822
|
|
|
12.2
|
|
|
3,696
|
|
|
32.8
|
|
|||||
Office operations
|
|
9,238
|
|
|
9,901
|
|
|
10,697
|
|
|
(663
|
)
|
|
(6.7
|
)
|
|
(796
|
)
|
|
(7.4
|
)
|
|||||
Other
|
|
11,043
|
|
|
11,246
|
|
|
9,275
|
|
|
(203
|
)
|
|
(1.8
|
)
|
|
1,971
|
|
|
21.3
|
|
|||||
|
|
$
|
160,344
|
|
|
$
|
156,377
|
|
|
$
|
151,555
|
|
|
$
|
3,967
|
|
|
2.5
|
%
|
|
$
|
4,822
|
|
|
3.2
|
%
|
|
Years Ended December 31,
|
|||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||||
|
Average
Outstanding
Balance
|
|
Interest
Earned/Paid
|
|
Yield/
Rate
|
|
Average
Outstanding
Balance
|
|
Interest
Earned/Paid
|
|
Yield/
Rate
|
|
Average
Outstanding
Balance
|
|
Interest
Earned/Paid
|
|
Yield/
Rate
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial real estate
|
$
|
2,848,548
|
|
|
$
|
144,117
|
|
|
5.06
|
%
|
|
$
|
2,448,730
|
|
|
$
|
124,857
|
|
|
5.10
|
%
|
|
$
|
1,940,113
|
|
|
$
|
101,469
|
|
|
5.23
|
%
|
Warehouse Purchase Program
|
907,097
|
|
|
34,156
|
|
|
3.77
|
|
|
1,004,797
|
|
|
33,094
|
|
|
3.29
|
|
|
808,163
|
|
|
27,041
|
|
|
3.35
|
|
||||||
Commercial and industrial
|
2,001,795
|
|
|
98,758
|
|
|
4.93
|
|
|
1,713,845
|
|
|
76,968
|
|
|
4.49
|
|
|
1,307,743
|
|
|
60,609
|
|
|
4.63
|
|
||||||
Construction and land
|
284,227
|
|
|
14,559
|
|
|
5.12
|
|
|
282,087
|
|
|
14,819
|
|
|
5.25
|
|
|
238,904
|
|
|
13,660
|
|
|
5.72
|
|
||||||
Consumer real estate
|
1,150,583
|
|
|
52,337
|
|
|
4.55
|
|
|
1,015,324
|
|
|
47,615
|
|
|
4.69
|
|
|
836,020
|
|
|
40,741
|
|
|
4.87
|
|
||||||
Other consumer
|
48,887
|
|
|
2,736
|
|
|
5.60
|
|
|
61,548
|
|
|
3,485
|
|
|
5.66
|
|
|
80,648
|
|
|
4,440
|
|
|
5.51
|
|
||||||
Loans held for sale
|
19,792
|
|
|
775
|
|
|
3.92
|
|
|
19,991
|
|
|
704
|
|
|
3.52
|
|
|
18,818
|
|
|
705
|
|
|
3.75
|
|
||||||
Less: deferred fees and allowance for loan loss
|
(67,592
|
)
|
|
—
|
|
|
—
|
|
|
(54,593
|
)
|
|
—
|
|
|
—
|
|
|
(34,478
|
)
|
|
—
|
|
|
—
|
|
||||||
Loans receivable
1
|
7,193,337
|
|
|
347,438
|
|
|
4.83
|
|
|
6,491,729
|
|
|
301,542
|
|
|
4.65
|
|
|
5,195,931
|
|
|
248,665
|
|
|
4.79
|
|
||||||
Agency mortgage-backed securities
|
312,276
|
|
|
6,617
|
|
|
2.12
|
|
|
344,119
|
|
|
6,996
|
|
|
2.03
|
|
|
341,406
|
|
|
6,857
|
|
|
2.01
|
|
||||||
Agency collateralized mortgage obligations
|
174,252
|
|
|
4,072
|
|
|
2.34
|
|
|
91,161
|
|
|
2,072
|
|
|
2.27
|
|
|
112,415
|
|
|
2,239
|
|
|
1.99
|
|
||||||
Investment securities
|
107,810
|
|
|
3,018
|
|
|
2.80
|
|
|
128,071
|
|
|
3,238
|
|
|
2.53
|
|
|
117,810
|
|
|
3,206
|
|
|
2.72
|
|
||||||
FHLB and FRB stock and other restricted securities
|
49,922
|
|
|
1,703
|
|
|
3.41
|
|
|
56,922
|
|
|
1,626
|
|
|
2.86
|
|
|
58,710
|
|
|
1,094
|
|
|
1.86
|
|
||||||
Interest-earning deposit accounts
|
331,258
|
|
|
4,009
|
|
|
1.21
|
|
|
339,325
|
|
|
1,878
|
|
|
0.55
|
|
|
194,301
|
|
|
631
|
|
|
0.32
|
|
||||||
Total interest-earning assets
|
8,168,855
|
|
|
366,857
|
|
|
4.49
|
|
|
7,451,327
|
|
|
317,352
|
|
|
4.26
|
|
|
6,020,573
|
|
|
262,692
|
|
|
4.36
|
|
||||||
Non-interest-earning assets
|
438,626
|
|
|
|
|
|
|
430,554
|
|
|
|
|
|
|
422,425
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
8,607,481
|
|
|
|
|
|
|
$
|
7,881,881
|
|
|
|
|
|
|
$
|
6,442,998
|
|
|
|
|
|
|||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing demand
|
$
|
876,518
|
|
|
5,475
|
|
|
0.62
|
|
|
$
|
805,059
|
|
|
3,974
|
|
|
0.49
|
|
|
$
|
722,225
|
|
|
3,297
|
|
|
0.46
|
|
|||
Savings and money market
|
2,782,336
|
|
|
16,845
|
|
|
0.61
|
|
|
2,370,366
|
|
|
7,288
|
|
|
0.31
|
|
|
1,895,809
|
|
|
3,644
|
|
|
0.19
|
|
||||||
Time
|
1,360,731
|
|
|
14,374
|
|
|
1.06
|
|
|
1,250,667
|
|
|
9,772
|
|
|
0.78
|
|
|
882,196
|
|
|
6,186
|
|
|
0.70
|
|
||||||
Borrowings
|
1,092,547
|
|
|
18,732
|
|
|
1.71
|
|
|
1,287,342
|
|
|
14,049
|
|
|
1.09
|
|
|
1,014,279
|
|
|
8,488
|
|
|
0.84
|
|
||||||
Total interest-bearing liabilities
|
6,112,132
|
|
|
55,426
|
|
|
0.91
|
|
|
5,713,434
|
|
|
35,083
|
|
|
0.61
|
|
|
4,514,509
|
|
|
21,615
|
|
|
0.48
|
|
||||||
Non-interest-bearing demand
|
1,451,258
|
|
|
|
|
|
|
1,240,712
|
|
|
|
|
|
|
1,077,310
|
|
|
|
|
|
||||||||||||
Non-interest-bearing liabilities
|
114,188
|
|
|
|
|
|
|
78,947
|
|
|
|
|
|
|
73,771
|
|
|
|
|
|
||||||||||||
Total liabilities
|
7,677,578
|
|
|
|
|
|
|
7,033,093
|
|
|
|
|
|
|
5,665,590
|
|
|
|
|
|
||||||||||||
Total shareholders’ equity
|
929,903
|
|
|
|
|
|
|
848,788
|
|
|
|
|
|
|
777,408
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders’ equity
|
$
|
8,607,481
|
|
|
|
|
|
|
$
|
7,881,881
|
|
|
|
|
|
|
$
|
6,442,998
|
|
|
|
|
|
|||||||||
Net interest income and margin
|
|
|
$
|
311,431
|
|
|
3.81
|
%
|
|
|
|
$
|
282,269
|
|
|
3.79
|
%
|
|
|
|
$
|
241,077
|
|
|
4.00
|
%
|
||||||
Net interest income and margin (tax-equivalent basis)
2
|
|
|
$
|
312,448
|
|
|
3.82
|
%
|
|
|
|
$
|
283,338
|
|
|
3.80
|
%
|
|
|
|
$
|
242,128
|
|
|
4.02
|
%
|
||||||
Net interest rate spread
|
|
|
|
|
3.58
|
%
|
|
|
|
|
|
3.65
|
%
|
|
|
|
|
|
3.88
|
%
|
||||||||||||
Net earning assets
|
$
|
2,056,723
|
|
|
|
|
|
|
$
|
1,737,893
|
|
|
|
|
|
|
$
|
1,506,064
|
|
|
|
|
|
|||||||||
Average interest-earning assets to average interest-bearing liabilities
|
133.65
|
%
|
|
|
|
|
|
130.42
|
%
|
|
|
|
|
|
133.36
|
%
|
|
|
|
|
1
|
Calculated net of deferred fees and costs, loan discounts, loans in process and allowance for loan losses.
|
2
|
In order to make pretax income and resultant yields on tax-exempt investments and loans comparable to those on taxable investments and loans, a tax-equivalent adjustment (a non-GAAP measure) has been computed using a federal income tax rate of 35% for
2017
,
2016
, and
2015
. Tax-exempt investments and loans had an average balance of $100.5 million, $106.0 million and $104.8 million for the years ended
December 31, 2017
,
2016
, and
2015
, respectively.
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
2017 versus 2016
|
|
2016 versus 2015
|
||||||||||||||||||||
|
Increase (Decrease) Due to
|
|
Total Increase
|
|
Increase (Decrease) Due to
|
|
Total Increase
|
||||||||||||||||
|
Volume
|
|
Rate
|
|
(Decrease)
|
|
Volume
|
|
Rate
|
|
(Decrease)
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate
|
$
|
20,235
|
|
|
$
|
(975
|
)
|
|
$
|
19,260
|
|
|
$
|
25,992
|
|
|
$
|
(2,604
|
)
|
|
$
|
23,388
|
|
Warehouse Purchase Program
|
(3,404
|
)
|
|
4,466
|
|
|
1,062
|
|
|
6,483
|
|
|
(430
|
)
|
|
6,053
|
|
||||||
Commercial and industrial
|
13,735
|
|
|
8,055
|
|
|
21,790
|
|
|
18,291
|
|
|
(1,932
|
)
|
|
16,359
|
|
||||||
Construction and land
|
112
|
|
|
(372
|
)
|
|
(260
|
)
|
|
2,331
|
|
|
(1,172
|
)
|
|
1,159
|
|
||||||
Consumer real estate
|
6,188
|
|
|
(1,466
|
)
|
|
4,722
|
|
|
8,458
|
|
|
(1,584
|
)
|
|
6,874
|
|
||||||
Other consumer
|
(709
|
)
|
|
(40
|
)
|
|
(749
|
)
|
|
(1,078
|
)
|
|
123
|
|
|
(955
|
)
|
||||||
Loans held for sale
|
(7
|
)
|
|
78
|
|
|
71
|
|
|
43
|
|
|
(44
|
)
|
|
(1
|
)
|
||||||
Loans receivable
|
36,150
|
|
|
9,746
|
|
|
45,896
|
|
|
60,520
|
|
|
(7,643
|
)
|
|
52,877
|
|
||||||
Agency mortgage-backed securities
|
(666
|
)
|
|
287
|
|
|
(379
|
)
|
|
55
|
|
|
84
|
|
|
139
|
|
||||||
Agency collateralized mortgage obligations
|
1,940
|
|
|
60
|
|
|
2,000
|
|
|
(457
|
)
|
|
290
|
|
|
(167
|
)
|
||||||
Investment securities
|
(545
|
)
|
|
325
|
|
|
(220
|
)
|
|
268
|
|
|
(236
|
)
|
|
32
|
|
||||||
FHLB and FRB stock and other restricted securities
|
(215
|
)
|
|
292
|
|
|
77
|
|
|
(34
|
)
|
|
566
|
|
|
532
|
|
||||||
Interest-earning deposit accounts
|
(46
|
)
|
|
2,177
|
|
|
2,131
|
|
|
642
|
|
|
605
|
|
|
1,247
|
|
||||||
Total interest-earning assets
|
36,618
|
|
|
12,887
|
|
|
49,505
|
|
|
60,994
|
|
|
(6,334
|
)
|
|
54,660
|
|
||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing demand
|
376
|
|
|
1,125
|
|
|
1,501
|
|
|
396
|
|
|
281
|
|
|
677
|
|
||||||
Savings and money market
|
1,453
|
|
|
8,104
|
|
|
9,557
|
|
|
1,073
|
|
|
2,571
|
|
|
3,644
|
|
||||||
Time
|
921
|
|
|
3,681
|
|
|
4,602
|
|
|
2,816
|
|
|
770
|
|
|
3,586
|
|
||||||
Borrowings
|
(2,380
|
)
|
|
7,063
|
|
|
4,683
|
|
|
2,611
|
|
|
2,950
|
|
|
5,561
|
|
||||||
Total interest-bearing liabilities
|
370
|
|
|
19,973
|
|
|
20,343
|
|
|
6,896
|
|
|
6,572
|
|
|
13,468
|
|
||||||
Net interest income
|
$
|
36,248
|
|
|
$
|
(7,086
|
)
|
|
$
|
29,162
|
|
|
$
|
54,098
|
|
|
$
|
(12,906
|
)
|
|
$
|
41,192
|
|
|
December 31, 2017
|
||||||||||||||||||
|
Less than
One Year
|
|
One
through
Three
Years
|
|
Four
through
Five Years
|
|
After Five
Years
|
|
Total
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Contractual obligations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits without a stated maturity
|
$
|
5,400,293
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,400,293
|
|
Certificates of deposit
|
860,102
|
|
|
424,780
|
|
|
78,835
|
|
|
3,673
|
|
|
1,367,390
|
|
|||||
FHLB advances
1
|
1,037,754
|
|
|
3,245
|
|
|
1,551
|
|
|
613
|
|
|
1,043,163
|
|
|||||
Repurchase agreements
|
84,676
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84,676
|
|
|||||
Subordinated debt
1
|
—
|
|
|
—
|
|
|
—
|
|
|
140,464
|
|
|
140,464
|
|
|||||
Private equity fund for Community Reinvestment Act purposes
|
1,680
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,680
|
|
|||||
Operating leases (premises)
|
5,725
|
|
|
9,765
|
|
|
8,178
|
|
|
16,303
|
|
|
39,971
|
|
|||||
Total contractual obligations
|
$
|
7,390,230
|
|
|
$
|
437,790
|
|
|
$
|
88,564
|
|
|
$
|
161,053
|
|
|
8,077,637
|
|
|
Off-balance sheet loan commitments:
2
|
|
|
|
|
|
|
|
|
|
||||||||||
Unused commitments to extend credit
|
$
|
840,766
|
|
|
$
|
531,437
|
|
|
$
|
170,109
|
|
|
$
|
58,482
|
|
|
1,600,794
|
|
|
Unused capacity on Warehouse Purchase Program loans
3
|
611,412
|
|
|
127,000
|
|
|
—
|
|
|
—
|
|
|
738,412
|
|
|||||
Standby letters of credit
|
28,229
|
|
|
4,970
|
|
|
892
|
|
|
—
|
|
|
34,091
|
|
|||||
Total loan commitments
|
$
|
1,480,407
|
|
|
$
|
663,407
|
|
|
$
|
171,001
|
|
|
$
|
58,482
|
|
|
2,373,297
|
|
|
Total contractual obligations and loan commitments
|
|
|
|
|
|
|
|
|
$
|
10,450,934
|
|
1
|
FHLB advances and subordinated debt are shown at their contractual amounts. Please see
Note 11
of the Notes to Consolidated Financial Statements contained in Item 8 of this report for more information regarding adjustments to the contractual amount.
|
2
|
Loans having no stated maturity are reported in the “Less than One Year” category.
|
3
|
In regards to unused capacity on Warehouse Purchase Program loans, the Company has established a maximum purchase facility amount, but reserves the right, at any time, to refuse to buy any mortgage loans offered for sale by its mortgage banking company customers for any reason in the Company's sole and absolute discretion.
|
|
Actual
|
|
Required for Capital Adequacy Purposes
|
|
To Be Well-Capitalized
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
December 31, 2017
|
(Dollars in Thousands)
|
|||||||||||||||||||
Total risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
991,713
|
|
|
11.87
|
%
|
|
$
|
668,142
|
|
|
8.00
|
%
|
|
$
|
835,178
|
|
|
10.00
|
%
|
Bank
|
939,655
|
|
|
11.25
|
|
|
668,096
|
|
|
8.00
|
|
|
835,120
|
|
|
10.00
|
|
|||
Tier 1 risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
796,887
|
|
|
9.54
|
|
|
501,107
|
|
|
6.00
|
|
|
501,107
|
|
|
6.00
|
|
|||
Bank
|
867,424
|
|
|
10.39
|
|
|
501,072
|
|
|
6.00
|
|
|
668,096
|
|
|
8.00
|
|
|||
Common equity tier 1 risk-based capital
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
784,960
|
|
|
9.40
|
|
|
375,830
|
|
|
4.50
|
|
|
n/a
1
|
|
|
n/a
1
|
|
|||
Bank
|
867,424
|
|
|
10.39
|
|
|
375,804
|
|
|
4.50
|
|
|
542,828
|
|
|
6.50
|
|
|||
Tier 1 leverage
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
796,887
|
|
|
9.17
|
|
|
347,731
|
|
|
4.00
|
|
|
n/a
1
|
|
|
n/a
1
|
|
|||
Bank
|
867,424
|
|
|
9.98
|
|
|
347,808
|
|
|
4.00
|
|
|
434,759
|
|
|
5.00
|
|
|||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
910,040
|
|
|
11.71
|
%
|
|
$
|
621,870
|
|
|
8.00
|
%
|
|
$
|
777,338
|
|
|
10.00
|
%
|
Bank
|
869,523
|
|
|
11.19
|
|
|
621,840
|
|
|
8.00
|
|
|
777,300
|
|
|
10.00
|
|
|||
Tier 1 risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
721,600
|
|
|
9.28
|
|
|
466,403
|
|
|
6.00
|
|
|
466,403
|
|
|
6.00
|
|
|||
Bank
|
803,374
|
|
|
10.34
|
|
|
466,380
|
|
|
6.00
|
|
|
621,840
|
|
|
8.00
|
|
|||
Common equity tier 1 risk-based capital
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
709,858
|
|
|
9.13
|
|
|
349,802
|
|
|
4.50
|
|
|
n/a
1
|
|
|
n/a
1
|
|
|||
Bank
|
803,374
|
|
|
10.34
|
|
|
349,785
|
|
|
4.50
|
|
|
505,245
|
|
|
6.50
|
|
|||
Tier 1 leverage
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
721,600
|
|
|
8.73
|
|
|
330,782
|
|
|
4.00
|
|
|
n/a
1
|
|
|
n/a
1
|
|
|||
Bank
|
803,374
|
|
|
9.71
|
|
|
330,873
|
|
|
4.00
|
|
|
413,591
|
|
|
5.00
|
|
Item 7A.
|
Quantitative and Qualitative Disclosures about Market Risk
|
Change in Interest Rates in Basis Points
|
|
Economic Value of Equity
|
|
Earnings at Risk (12 months)
|
|||||||||||||||||
|
Estimated EVE
|
|
Estimated Increase / (Decrease) in EVE
|
|
EVE Ratio %
|
|
Estimated Net Interest Income
|
|
Increase / (Decrease) in Estimated Net Interest Income
|
||||||||||||
|
|
$ Amount
|
|
$ Change
|
|
% Change
|
|
|
|
$ Amount
|
|
$ Change
|
|
% Change
|
|||||||
December 31, 2017
|
|
(Dollars in thousands)
|
|||||||||||||||||||
400
|
|
|
1,250,757
|
|
|
(125,669
|
)
|
|
(9.13
|
)
|
|
14.89
|
|
358,384
|
|
|
15,210
|
|
|
4.43
|
|
300
|
|
|
1,289,760
|
|
|
(86,666
|
)
|
|
(6.30
|
)
|
|
15.09
|
|
355,186
|
|
|
12,012
|
|
|
3.50
|
|
200
|
|
|
1,322,187
|
|
|
(54,239
|
)
|
|
(3.94
|
)
|
|
15.21
|
|
351,794
|
|
|
8,620
|
|
|
2.51
|
|
100
|
|
|
1,348,578
|
|
|
(27,848
|
)
|
|
(2.02
|
)
|
|
15.26
|
|
348,173
|
|
|
4,999
|
|
|
1.46
|
|
—
|
|
|
1,376,426
|
|
|
—
|
|
|
—
|
|
|
15.34
|
|
343,174
|
|
|
—
|
|
|
—
|
|
(100
|
)
|
|
1,315,702
|
|
|
(60,724
|
)
|
|
(4.41
|
)
|
|
14.45
|
|
334,954
|
|
|
(8,220
|
)
|
|
(2.40
|
)
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
400
|
|
|
1,137,560
|
|
|
(127,508
|
)
|
|
(10.08
|
)
|
|
14.74
|
|
312,457
|
|
|
1,807
|
|
|
0.58
|
|
300
|
|
|
1,180,103
|
|
|
(84,965
|
)
|
|
(6.72
|
)
|
|
15.02
|
|
312,109
|
|
|
1,459
|
|
|
0.47
|
|
200
|
|
|
1,216,125
|
|
|
(48,943
|
)
|
|
(3.87
|
)
|
|
15.21
|
|
311,549
|
|
|
899
|
|
|
0.29
|
|
100
|
|
|
1,248,129
|
|
|
(16,939
|
)
|
|
(1.34
|
)
|
|
15.34
|
|
310,953
|
|
|
303
|
|
|
0.10
|
|
—
|
|
|
1,265,068
|
|
|
—
|
|
|
—
|
|
|
15.30
|
|
310,650
|
|
|
—
|
|
|
—
|
|
(100
|
)
|
|
1,230,570
|
|
|
(34,498
|
)
|
|
(2.73
|
)
|
|
14.64
|
|
297,726
|
|
|
(12,924
|
)
|
|
(4.16
|
)
|
Item 8.
|
Financial Statements and Supplementary Data
|
|
Page
|
|
|
|
|
CONSOLIDATED FINANCIAL STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
||||
ASSETS
|
|
|
|
||||
Cash and due from financial institutions
|
$
|
61,713
|
|
|
$
|
59,823
|
|
Short-term interest-bearing deposits in other financial institutions
|
231,743
|
|
|
229,389
|
|
||
Total cash and cash equivalents
|
293,456
|
|
|
289,212
|
|
||
Securities available for sale, at fair value
|
419,717
|
|
|
354,515
|
|
||
Securities held to maturity, (fair value: December 31, 2017 — $174,926, December 31, 2016 — $212,981)
|
173,509
|
|
|
210,387
|
|
||
Loans held for sale, at fair value
|
16,707
|
|
|
21,279
|
|
||
Loans held for investment:
|
|
|
|
||||
Loans held for investment (net of allowance for loan losses of $71,301 at December 31, 2017 and $64,576 at December 31, 2016)
|
6,584,529
|
|
|
5,998,596
|
|
||
Loans held for investment - Warehouse Purchase Program
|
1,154,588
|
|
|
1,055,341
|
|
||
Total loans held for investment
|
7,739,117
|
|
|
7,053,937
|
|
||
Federal Home Loan Bank ("FHLB") stock and other restricted securities, at cost
|
64,790
|
|
|
43,266
|
|
||
Bank-owned life insurance
|
57,684
|
|
|
56,477
|
|
||
Premises and equipment, net
|
69,693
|
|
|
74,226
|
|
||
Goodwill
|
178,559
|
|
|
178,559
|
|
||
Other assets
|
72,964
|
|
|
80,397
|
|
||
Total assets
|
$
|
9,086,196
|
|
|
$
|
8,362,255
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Deposits
|
|
|
|
||||
Non-interest-bearing demand
|
$
|
1,635,622
|
|
|
$
|
1,383,951
|
|
Interest-bearing demand
|
1,029,375
|
|
|
903,314
|
|
||
Savings and money market
|
2,735,296
|
|
|
2,710,307
|
|
||
Time
|
1,367,390
|
|
|
1,367,904
|
|
||
Total deposits
|
6,767,683
|
|
|
6,365,476
|
|
||
FHLB advances
|
1,043,163
|
|
|
833,682
|
|
||
Repurchase agreements
|
84,676
|
|
|
86,691
|
|
||
Subordinated debt
|
134,522
|
|
|
134,032
|
|
||
Accrued expenses and other liabilities
|
96,278
|
|
|
57,009
|
|
||
Total liabilities
|
8,126,322
|
|
|
7,476,890
|
|
||
Commitments and contingent liabilities (See Note 17)
|
|
|
|
|
|
||
Shareholders’ equity
|
|
|
|
||||
Preferred stock, $.01 par value; 10,000,000 shares authorized; 0 shares issued — December 31, 2017 and December 31, 2016
|
—
|
|
|
—
|
|
||
Common stock, $.01 par value; 90,000,000 shares authorized; 48,117,390 shares issued — December 31, 2017 and 47,876,198 shares issued — December 31, 2016
|
481
|
|
|
479
|
|
||
Additional paid-in capital
|
603,884
|
|
|
589,408
|
|
||
Retained earnings
|
370,858
|
|
|
310,641
|
|
||
Accumulated other comprehensive income (loss), net
|
(3,429
|
)
|
|
(2,713
|
)
|
||
Unearned Employee Stock Ownership Plan (ESOP) shares; 1,192,093 shares at
December 31, 2017 and 1,245,046 shares at December 31, 2016
|
(11,920
|
)
|
|
(12,450
|
)
|
||
Total shareholders’ equity
|
959,874
|
|
|
885,365
|
|
||
Total liabilities and shareholders’ equity
|
$
|
9,086,196
|
|
|
$
|
8,362,255
|
|
|
|
|
|
||||
See accompanying notes to consolidated financial statements.
|
|
2017
|
|
2016
|
|
2015
|
||||||
Interest and dividend income
|
|
|
|
|
|
||||||
Loans, including fees
|
$
|
347,438
|
|
|
$
|
301,542
|
|
|
$
|
248,665
|
|
Taxable securities
|
10,800
|
|
|
9,254
|
|
|
9,307
|
|
|||
Nontaxable securities
|
2,907
|
|
|
3,052
|
|
|
2,995
|
|
|||
Interest-bearing deposits in other financial institutions
|
4,009
|
|
|
1,878
|
|
|
631
|
|
|||
FHLB and FRB stock and other
|
1,703
|
|
|
1,626
|
|
|
1,094
|
|
|||
|
366,857
|
|
|
317,352
|
|
|
262,692
|
|
|||
Interest expense
|
|
|
|
|
|
||||||
Deposits
|
36,694
|
|
|
21,034
|
|
|
13,127
|
|
|||
FHLB advances
|
9,650
|
|
|
7,167
|
|
|
6,552
|
|
|||
Repurchase agreements and other borrowings
|
9,082
|
|
|
6,882
|
|
|
1,936
|
|
|||
|
55,426
|
|
|
35,083
|
|
|
21,615
|
|
|||
Net interest income
|
311,431
|
|
|
282,269
|
|
|
241,077
|
|
|||
Provision for credit losses
|
39,456
|
|
|
26,900
|
|
|
25,465
|
|
|||
Net interest income after provision for credit losses
|
271,975
|
|
|
255,369
|
|
|
215,612
|
|
|||
Non-interest income
|
|
|
|
|
|
||||||
Service charges and other fees
|
35,742
|
|
|
36,690
|
|
|
30,936
|
|
|||
Net gain on sale of mortgage loans held for sale
|
7,322
|
|
|
8,225
|
|
|
8,036
|
|
|||
Bank-owned life insurance income
|
1,727
|
|
|
1,744
|
|
|
1,699
|
|
|||
Net gain (loss) on securities transactions
|
(39
|
)
|
|
56
|
|
|
203
|
|
|||
Gain (loss) on sale and disposition of assets
|
(1,572
|
)
|
|
3,356
|
|
|
873
|
|
|||
Other
|
402
|
|
|
1,860
|
|
|
3,068
|
|
|||
|
43,582
|
|
|
51,931
|
|
|
44,815
|
|
|||
Non-interest expense
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
95,136
|
|
|
92,568
|
|
|
92,527
|
|
|||
Merger and acquisition costs
|
—
|
|
|
—
|
|
|
1,553
|
|
|||
Advertising
|
4,378
|
|
|
3,861
|
|
|
3,773
|
|
|||
Occupancy and equipment
|
14,385
|
|
|
15,007
|
|
|
14,860
|
|
|||
Outside professional services
|
4,889
|
|
|
3,872
|
|
|
3,332
|
|
|||
Regulatory assessments
|
4,479
|
|
|
4,948
|
|
|
4,260
|
|
|||
Data processing
|
16,796
|
|
|
14,974
|
|
|
11,278
|
|
|||
Office operations
|
9,238
|
|
|
9,901
|
|
|
10,697
|
|
|||
Other
|
11,043
|
|
|
11,246
|
|
|
9,275
|
|
|||
|
160,344
|
|
|
156,377
|
|
|
151,555
|
|
|||
Income before income tax expense
|
155,213
|
|
|
150,923
|
|
|
108,872
|
|
|||
Income tax expense
|
65,719
|
|
|
53,102
|
|
|
37,956
|
|
|||
Net income
|
$
|
89,494
|
|
|
$
|
97,821
|
|
|
$
|
70,916
|
|
|
|
|
|
|
|
||||||
Earnings per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
1.91
|
|
|
$
|
2.11
|
|
|
$
|
1.54
|
|
Diluted
|
$
|
1.89
|
|
|
$
|
2.09
|
|
|
$
|
1.53
|
|
Dividends declared per share
|
$
|
0.61
|
|
|
$
|
0.58
|
|
|
$
|
0.54
|
|
See accompanying notes to consolidated financial statements.
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net income
|
$
|
89,494
|
|
|
$
|
97,821
|
|
|
$
|
70,916
|
|
Change in unrealized gains (losses) on securities available for sale
|
(1,144
|
)
|
|
(3,917
|
)
|
|
(1,434
|
)
|
|||
Reclassification of amount realized through securities transactions
|
39
|
|
|
(56
|
)
|
|
(203
|
)
|
|||
Tax effect
|
389
|
|
|
1,393
|
|
|
574
|
|
|||
Other comprehensive income (loss), net of tax
|
(716
|
)
|
|
(2,580
|
)
|
|
(1,063
|
)
|
|||
Comprehensive income
|
$
|
88,778
|
|
|
$
|
95,241
|
|
|
$
|
69,853
|
|
|
|
|
|
|
|
||||||
See accompanying notes to consolidated financial statements.
|
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss), Net
|
|
Unearned
ESOP Shares
|
|
Total
Shareholders’
Equity
|
||||||||||||
Balance as of December 31, 2014
|
$
|
400
|
|
|
$
|
386,549
|
|
|
$
|
195,327
|
|
|
$
|
930
|
|
|
$
|
(14,983
|
)
|
|
$
|
568,223
|
|
Net income
|
—
|
|
|
—
|
|
|
70,916
|
|
|
—
|
|
|
—
|
|
|
70,916
|
|
||||||
Other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,063
|
)
|
|
—
|
|
|
(1,063
|
)
|
||||||
Dividends declared, ($0.54 per share)
|
—
|
|
|
—
|
|
|
(25,747
|
)
|
|
—
|
|
|
—
|
|
|
(25,747
|
)
|
||||||
ESOP shares earned, (184,194 shares)
|
—
|
|
|
4,284
|
|
|
—
|
|
|
—
|
|
|
1,467
|
|
|
5,751
|
|
||||||
Share-based compensation expense
|
—
|
|
|
5,477
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,477
|
|
||||||
Activity in employee stock plans, (138,855 shares)
|
1
|
|
|
1,283
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,284
|
|
||||||
Share repurchase, (357,950 shares)
|
(4
|
)
|
|
(7,985
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,989
|
)
|
||||||
Acquisition of LegacyTexas Group, Inc., (7,850,070 shares)
|
79
|
|
|
187,145
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
187,224
|
|
||||||
Balance at December 31, 2015
|
476
|
|
|
576,753
|
|
|
240,496
|
|
|
(133
|
)
|
|
(13,516
|
)
|
|
804,076
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
97,821
|
|
|
—
|
|
|
—
|
|
|
97,821
|
|
||||||
Other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,580
|
)
|
|
—
|
|
|
(2,580
|
)
|
||||||
Dividends declared, ($0.58 per share)
|
—
|
|
|
—
|
|
|
(27,676
|
)
|
|
—
|
|
|
—
|
|
|
(27,676
|
)
|
||||||
ESOP shares earned, (120,411 shares)
|
—
|
|
|
2,889
|
|
|
—
|
|
|
—
|
|
|
1,066
|
|
|
3,955
|
|
||||||
Share-based compensation expense
|
—
|
|
|
6,014
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,014
|
|
||||||
Activity in employee stock plans, (230,372 shares)
|
3
|
|
|
3,752
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,755
|
|
||||||
Balance at December 31, 2016
|
479
|
|
|
589,408
|
|
|
310,641
|
|
|
(2,713
|
)
|
|
(12,450
|
)
|
|
885,365
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
89,494
|
|
|
—
|
|
|
—
|
|
|
89,494
|
|
||||||
Other comprehensive income (loss), net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(716
|
)
|
|
—
|
|
|
(716
|
)
|
||||||
Dividends declared, ($0.61 per share)
|
—
|
|
|
—
|
|
|
(29,277
|
)
|
|
—
|
|
|
—
|
|
|
(29,277
|
)
|
||||||
ESOP shares earned, (52,953 shares)
|
—
|
|
|
2,304
|
|
|
—
|
|
|
—
|
|
|
530
|
|
|
2,834
|
|
||||||
Share-based compensation expense
|
—
|
|
|
7,462
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,462
|
|
||||||
Activity in employee stock plans, (241,192 shares)
|
2
|
|
|
4,710
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,712
|
|
||||||
Balance at December 31, 2017
|
$
|
481
|
|
|
$
|
603,884
|
|
|
$
|
370,858
|
|
|
$
|
(3,429
|
)
|
|
$
|
(11,920
|
)
|
|
$
|
959,874
|
|
See accompanying notes to consolidated financial statements.
|
|
2017
|
|
2016
|
|
2015
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
89,494
|
|
|
$
|
97,821
|
|
|
$
|
70,916
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Provision for credit losses
|
39,456
|
|
|
26,900
|
|
|
25,465
|
|
|||
Depreciation and amortization
|
7,142
|
|
|
7,081
|
|
|
7,196
|
|
|||
Deferred tax expense (benefit)
|
(4,115
|
)
|
|
(6,798
|
)
|
|
(692
|
)
|
|||
Impact of Tax Cuts and Jobs Act on deferred taxes
|
13,493
|
|
|
—
|
|
|
—
|
|
|||
Premium amortization and accretion of securities, net
|
4,337
|
|
|
4,359
|
|
|
4,267
|
|
|||
Accretion related to acquired loans
|
(3,097
|
)
|
|
(4,613
|
)
|
|
(10,241
|
)
|
|||
Net (gain) loss on securities transactions
|
39
|
|
|
(56
|
)
|
|
(203
|
)
|
|||
ESOP compensation expense
|
2,834
|
|
|
3,955
|
|
|
5,751
|
|
|||
Share-based compensation expense
|
7,462
|
|
|
6,014
|
|
|
5,477
|
|
|||
Excess tax benefit on vesting of stock awards
|
1,578
|
|
|
—
|
|
|
—
|
|
|||
Net gain on loans held for sale
|
(7,322
|
)
|
|
(8,225
|
)
|
|
(8,036
|
)
|
|||
Loans originated or purchased for sale
|
(195,161
|
)
|
|
(218,288
|
)
|
|
(222,195
|
)
|
|||
Proceeds from sale of loans held for sale
|
207,055
|
|
|
227,769
|
|
|
225,335
|
|
|||
FHLB stock dividends
|
(548
|
)
|
|
(539
|
)
|
|
(152
|
)
|
|||
Bank-owned life insurance income
|
(1,727
|
)
|
|
(1,744
|
)
|
|
(1,699
|
)
|
|||
(Gain) loss on sale and disposition of repossessed assets, premises and equipment
|
2,099
|
|
|
(3,524
|
)
|
|
(293
|
)
|
|||
Disposition of insurance subsidiary goodwill upon sale of subsidiary operations
|
—
|
|
|
2,217
|
|
|
—
|
|
|||
Net change in deferred loan fees/costs
|
(8,631
|
)
|
|
391
|
|
|
(1,067
|
)
|
|||
Net change in accrued interest receivable
|
(4,249
|
)
|
|
(3,238
|
)
|
|
(2,821
|
)
|
|||
Net change in other assets
|
(1,299
|
)
|
|
(2,947
|
)
|
|
8,444
|
|
|||
Net change in other liabilities
|
40,176
|
|
|
5,913
|
|
|
(16,250
|
)
|
|||
Net cash provided by operating activities
|
189,016
|
|
|
132,448
|
|
|
89,202
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Available for sale securities:
|
|
|
|
|
|
||||||
Maturities, prepayments and calls
|
2,028,905
|
|
|
2,276,913
|
|
|
2,114,641
|
|
|||
Purchases
|
(2,098,681
|
)
|
|
(2,334,558
|
)
|
|
(2,148,080
|
)
|
|||
Proceeds from sale of AFS securities
|
—
|
|
|
7,700
|
|
|
36,984
|
|
|||
Held to maturity securities:
|
|
|
|
|
|
||||||
Maturities, prepayments and calls
|
35,973
|
|
|
41,384
|
|
|
49,730
|
|
|||
Purchases
|
—
|
|
|
(12,477
|
)
|
|
(15,933
|
)
|
|||
Originations of Warehouse Purchase Program loans
|
(21,917,085
|
)
|
|
(19,966,527
|
)
|
|
(15,511,029
|
)
|
|||
Proceeds from pay-offs of Warehouse Purchase Program loans
|
21,817,838
|
|
|
19,954,905
|
|
|
15,253,726
|
|
|||
Net change in loans held for investment, excluding Warehouse Purchase Program
|
(620,066
|
)
|
|
(1,014,500
|
)
|
|
(1,030,016
|
)
|
|||
Redemption (purchase) of FHLB and FRB stock and other
|
(20,976
|
)
|
|
20,348
|
|
|
(14,527
|
)
|
|||
Cash received in excess of cash paid for acquisition of LegacyTexas Group, Inc.
|
—
|
|
|
—
|
|
|
128,598
|
|
|||
Purchases of premises and equipment
|
(3,602
|
)
|
|
(8,420
|
)
|
|
(5,660
|
)
|
|||
Proceeds from sale of assets
|
7,814
|
|
|
15,803
|
|
|
10,121
|
|
|||
Net cash (used in) investing activities
|
(769,880
|
)
|
|
(1,019,429
|
)
|
|
(1,131,445
|
)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Net change in deposits
|
402,207
|
|
|
1,138,765
|
|
|
940,862
|
|
|||
Proceeds from FHLB advances
|
825,000
|
|
|
200,000
|
|
|
1,350,000
|
|
|||
Repayments on FHLB advances
|
(615,519
|
)
|
|
(806,222
|
)
|
|
(773,003
|
)
|
|||
Share repurchase
|
—
|
|
|
—
|
|
|
(7,989
|
)
|
|||
Proceeds from borrowings
|
—
|
|
|
76,861
|
|
|
73,407
|
|
|||
Repayments of borrowings
|
(2,015
|
)
|
|
(24,929
|
)
|
|
(32,953
|
)
|
|||
Payment of dividends
|
(29,277
|
)
|
|
(27,676
|
)
|
|
(25,747
|
)
|
|||
Activity in employee stock plans
|
4,712
|
|
|
3,755
|
|
|
1,284
|
|
|||
Net cash provided by financing activities
|
585,108
|
|
|
560,554
|
|
|
1,525,861
|
|
|||
Net change in cash and cash equivalents
|
4,244
|
|
|
(326,427
|
)
|
|
483,618
|
|
|||
Beginning cash and cash equivalents
|
289,212
|
|
|
615,639
|
|
|
132,021
|
|
|||
Ending cash and cash equivalents
|
$
|
293,456
|
|
|
$
|
289,212
|
|
|
$
|
615,639
|
|
Supplemental cash flow information:
|
|
|
|
|
|
||||||
Interest paid
|
$
|
54,808
|
|
|
$
|
34,625
|
|
|
$
|
20,861
|
|
Income taxes paid
|
57,482
|
|
|
60,854
|
|
|
36,835
|
|
|||
Supplemental noncash disclosures:
|
|
|
|
|
|
||||||
Transfers from loans to other real estate owned
|
4,553
|
|
|
10,780
|
|
|
3,287
|
|
|||
Common stock issued in consideration of LegacyTexas Group, Inc. acquisition
|
—
|
|
|
—
|
|
|
187,224
|
|
|||
See accompanying notes to consolidated financial statements.
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Basic earnings per share:
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income
|
$
|
89,494
|
|
|
$
|
97,821
|
|
|
$
|
70,916
|
|
Distributed and undistributed earnings to participating securities
|
(318
|
)
|
|
(497
|
)
|
|
(534
|
)
|
|||
Income available to common shareholders
|
$
|
89,176
|
|
|
$
|
97,324
|
|
|
$
|
70,382
|
|
Denominator:
|
|
|
|
|
|
||||||
Weighted average common shares outstanding
|
47,998,439
|
|
|
47,721,179
|
|
|
47,659,389
|
|
|||
Less: Average unallocated ESOP shares
|
(1,220,516
|
)
|
|
(1,301,356
|
)
|
|
(1,464,324
|
)
|
|||
Average unvested restricted stock awards
|
(166,143
|
)
|
|
(235,749
|
)
|
|
(347,781
|
)
|
|||
Average shares for basic earnings per share
|
46,611,780
|
|
|
46,184,074
|
|
|
45,847,284
|
|
|||
Basic earnings per common share
|
$
|
1.91
|
|
|
$
|
2.11
|
|
|
$
|
1.54
|
|
Diluted earnings per share:
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Income available to common shareholders
|
$
|
89,176
|
|
|
$
|
97,324
|
|
|
$
|
70,382
|
|
Denominator:
|
|
|
|
|
|
||||||
Average shares for basic earnings per share
|
46,611,780
|
|
|
46,184,074
|
|
|
45,847,284
|
|
|||
Dilutive effect of share-based compensation plan
|
526,738
|
|
|
300,893
|
|
|
278,163
|
|
|||
Average shares for diluted earnings per share
|
47,138,518
|
|
|
46,484,967
|
|
|
46,125,447
|
|
|||
Diluted earnings per common share
|
$
|
1.89
|
|
|
$
|
2.09
|
|
|
$
|
1.53
|
|
Share awards excluded in the computation of diluted earnings per share because the exercise price was greater than the common stock average market price and were therefore anti-dilutive
|
623,666
|
|
|
1,384,784
|
|
|
1,012,771
|
|
December 31, 2017
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
Agency residential mortgage-backed securities
1
|
$
|
191,216
|
|
|
$
|
419
|
|
|
$
|
2,169
|
|
|
$
|
189,466
|
|
Agency commercial mortgage-backed securities
1
|
9,360
|
|
|
—
|
|
|
125
|
|
|
9,235
|
|
||||
Agency residential collateralized mortgage obligations
1
|
187,637
|
|
|
4
|
|
|
3,425
|
|
|
184,216
|
|
||||
US government and agency securities
|
1,590
|
|
|
81
|
|
|
—
|
|
|
1,671
|
|
||||
Municipal bonds
|
35,196
|
|
|
241
|
|
|
308
|
|
|
35,129
|
|
||||
Total securities
|
$
|
424,999
|
|
|
$
|
745
|
|
|
$
|
6,027
|
|
|
$
|
419,717
|
|
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Agency residential mortgage-backed securities
1
|
$
|
220,744
|
|
|
$
|
635
|
|
|
$
|
2,828
|
|
|
$
|
218,551
|
|
Agency commercial mortgage-backed securities
1
|
9,422
|
|
|
—
|
|
|
75
|
|
|
9,347
|
|
||||
Agency residential collateralized mortgage obligations
1
|
87,959
|
|
|
22
|
|
|
1,452
|
|
|
86,529
|
|
||||
US government and agency securities
|
2,150
|
|
|
101
|
|
|
—
|
|
|
2,251
|
|
||||
Municipal bonds
|
38,417
|
|
|
47
|
|
|
627
|
|
|
37,837
|
|
||||
Total securities
|
$
|
358,692
|
|
|
$
|
805
|
|
|
$
|
4,982
|
|
|
$
|
354,515
|
|
1
|
Mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.
|
December 31, 2017
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
Agency residential mortgage-backed securities
1
|
$
|
57,334
|
|
|
$
|
616
|
|
|
$
|
646
|
|
|
$
|
57,304
|
|
Agency commercial mortgage-backed securities
1
|
27,435
|
|
|
589
|
|
|
98
|
|
|
27,926
|
|
||||
Agency residential collateralized mortgage obligations
1
|
27,112
|
|
|
265
|
|
|
99
|
|
|
27,278
|
|
||||
Municipal bonds
|
61,628
|
|
|
1,079
|
|
|
289
|
|
|
62,418
|
|
||||
Total securities
|
$
|
173,509
|
|
|
$
|
2,549
|
|
|
$
|
1,132
|
|
|
$
|
174,926
|
|
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Agency residential mortgage-backed securities
1
|
$
|
74,881
|
|
|
$
|
1,147
|
|
|
$
|
817
|
|
|
$
|
75,211
|
|
Agency commercial mortgage-backed securities
1
|
28,023
|
|
|
836
|
|
|
166
|
|
|
28,693
|
|
||||
Agency residential collateralized mortgage obligations
1
|
40,707
|
|
|
697
|
|
|
33
|
|
|
41,371
|
|
||||
Municipal bonds
|
66,776
|
|
|
1,635
|
|
|
705
|
|
|
67,706
|
|
||||
Total securities
|
$
|
210,387
|
|
|
$
|
4,315
|
|
|
$
|
1,721
|
|
|
$
|
212,981
|
|
1
|
Mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.
|
|
HTM
|
|
AFS
|
||||||||
|
Amortized
Cost
|
|
Fair Value
|
|
Fair Value
|
||||||
Due in one year or less
|
$
|
1,365
|
|
|
$
|
1,373
|
|
|
$
|
1,526
|
|
Due after one to five years
|
10,699
|
|
|
10,959
|
|
|
12,726
|
|
|||
Due after five to ten years
|
44,059
|
|
|
44,628
|
|
|
16,731
|
|
|||
Due after ten years
|
5,505
|
|
|
5,458
|
|
|
5,817
|
|
|||
Agency residential mortgage-backed securities
|
57,334
|
|
|
57,304
|
|
|
189,466
|
|
|||
Agency commercial mortgage-backed securities
|
27,435
|
|
|
27,926
|
|
|
9,235
|
|
|||
Agency residential collateralized mortgage obligations
|
27,112
|
|
|
27,278
|
|
|
184,216
|
|
|||
Total
|
$
|
173,509
|
|
|
$
|
174,926
|
|
|
$
|
419,717
|
|
|
December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Proceeds
|
$
|
—
|
|
|
$
|
7,700
|
|
|
$
|
36,984
|
|
Gross gains
|
—
|
|
|
72
|
|
|
278
|
|
|||
Gross losses
|
—
|
|
|
7
|
|
|
50
|
|
|||
Tax expense of securities gains/losses reclassified from accumulated other comprehensive income
|
—
|
|
|
23
|
|
|
80
|
|
AFS
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
December 31, 2017
|
Fair Value
|
|
Unrealized Loss
|
|
Fair Value
|
|
Unrealized Loss
|
|
Fair Value
|
|
Unrealized Loss
|
||||||||||||
Agency residential mortgage-backed securities
1
|
$
|
59,545
|
|
|
$
|
412
|
|
|
$
|
100,214
|
|
|
$
|
1,757
|
|
|
$
|
159,759
|
|
|
$
|
2,169
|
|
Agency commercial mortgage-backed securities
1
|
9,235
|
|
|
125
|
|
|
—
|
|
|
—
|
|
|
9,235
|
|
|
125
|
|
||||||
Agency residential collateralized mortgage obligations
1
|
128,869
|
|
|
1,860
|
|
|
49,171
|
|
|
1,565
|
|
|
178,040
|
|
|
3,425
|
|
||||||
Municipal bonds
|
10,114
|
|
|
72
|
|
|
6,583
|
|
|
236
|
|
|
16,697
|
|
|
308
|
|
||||||
Total temporarily impaired
|
$
|
207,763
|
|
|
$
|
2,469
|
|
|
$
|
155,968
|
|
|
$
|
3,558
|
|
|
$
|
363,731
|
|
|
$
|
6,027
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency residential mortgage-backed securities
1
|
$
|
167,503
|
|
|
$
|
2,770
|
|
|
$
|
7,516
|
|
|
$
|
58
|
|
|
$
|
175,019
|
|
|
$
|
2,828
|
|
Agency commercial mortgage-backed securities
1
|
9,347
|
|
|
75
|
|
|
—
|
|
|
—
|
|
|
9,347
|
|
|
75
|
|
||||||
Agency residential collateralized mortgage obligations
1
|
72,822
|
|
|
1,420
|
|
|
2,649
|
|
|
32
|
|
|
75,471
|
|
|
1,452
|
|
||||||
Municipal bonds
|
26,911
|
|
|
512
|
|
|
3,412
|
|
|
115
|
|
|
30,323
|
|
|
627
|
|
||||||
Total temporarily impaired
|
$
|
276,583
|
|
|
$
|
4,777
|
|
|
$
|
13,577
|
|
|
$
|
205
|
|
|
$
|
290,160
|
|
|
$
|
4,982
|
|
HTM
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
December 31, 2017
|
Fair Value
|
|
Unrealized Loss
|
|
Fair Value
|
|
Unrealized Loss
|
|
Fair Value
|
|
Unrealized Loss
|
||||||||||||
Agency residential mortgage-backed securities
1
|
$
|
20,397
|
|
|
$
|
206
|
|
|
$
|
16,909
|
|
|
$
|
440
|
|
|
$
|
37,306
|
|
|
$
|
646
|
|
Agency commercial mortgage-backed securities
1
|
3,685
|
|
|
26
|
|
|
3,484
|
|
|
72
|
|
|
7,169
|
|
|
98
|
|
||||||
Agency residential collateralized mortgage obligations
1
|
8,008
|
|
|
64
|
|
|
2,267
|
|
|
35
|
|
|
10,275
|
|
|
99
|
|
||||||
Municipal bonds
|
9,313
|
|
|
80
|
|
|
10,486
|
|
|
209
|
|
|
19,799
|
|
|
289
|
|
||||||
Total temporarily impaired
|
$
|
41,403
|
|
|
$
|
376
|
|
|
$
|
33,146
|
|
|
$
|
756
|
|
|
$
|
74,549
|
|
|
$
|
1,132
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency residential mortgage-backed securities
1
|
$
|
41,375
|
|
|
$
|
817
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
41,375
|
|
|
$
|
817
|
|
Agency commercial mortgage-backed securities
1
|
7,273
|
|
|
166
|
|
|
—
|
|
|
—
|
|
|
7,273
|
|
|
166
|
|
||||||
Agency residential collateralized mortgage obligations
1
|
6,322
|
|
|
11
|
|
|
1,451
|
|
|
22
|
|
|
7,773
|
|
|
33
|
|
||||||
Municipal bonds
|
19,362
|
|
|
658
|
|
|
1,045
|
|
|
47
|
|
|
20,407
|
|
|
705
|
|
||||||
Total temporarily impaired
|
$
|
74,332
|
|
|
$
|
1,652
|
|
|
$
|
2,496
|
|
|
$
|
69
|
|
|
$
|
76,828
|
|
|
$
|
1,721
|
|
1
|
Mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Loans held for sale, at fair value
|
$
|
16,707
|
|
|
$
|
21,279
|
|
|
|
|
|
||||
Loans held for investment:
|
|
|
|
||||
Commercial real estate
|
$
|
3,019,339
|
|
|
$
|
2,670,455
|
|
Commercial and industrial
|
2,093,307
|
|
|
1,971,160
|
|
||
Construction and land
|
277,864
|
|
|
294,894
|
|
||
Consumer real estate
|
1,213,434
|
|
|
1,074,923
|
|
||
Other consumer
|
45,506
|
|
|
53,991
|
|
||
Gross loans held for investment, excluding Warehouse Purchase Program
|
6,649,450
|
|
|
6,065,423
|
|
||
Net of:
|
|
|
|
||||
Deferred costs (fees) and discounts, net
|
6,380
|
|
|
(2,251
|
)
|
||
Allowance for loan losses
|
(71,301
|
)
|
|
(64,576
|
)
|
||
Net loans held for investment, excluding Warehouse Purchase Program
|
6,584,529
|
|
|
5,998,596
|
|
||
Warehouse Purchase Program
|
1,154,588
|
|
|
1,055,341
|
|
||
Total loans held for investment
|
$
|
7,739,117
|
|
|
$
|
7,053,937
|
|
For the year ended December 31, 2017
|
|
Commercial Real Estate
|
|
Commercial and Industrial
|
|
Construction and Land
|
|
Consumer Real Estate
|
|
Other Consumer
|
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
|
$
|
18,303
|
|
|
$
|
35,464
|
|
|
$
|
5,075
|
|
|
$
|
4,484
|
|
|
$
|
1,250
|
|
|
$
|
64,576
|
|
Charge-offs
|
|
(16
|
)
|
|
(32,846
|
)
|
|
(418
|
)
|
|
(96
|
)
|
|
(1,366
|
)
|
|
(34,742
|
)
|
||||||
Recoveries
|
|
205
|
|
|
405
|
|
|
75
|
|
|
42
|
|
|
640
|
|
|
1,367
|
|
||||||
Provision expense (benefit)
|
|
3,095
|
|
|
35,982
|
|
|
(88
|
)
|
|
408
|
|
|
703
|
|
|
40,100
|
|
||||||
Ending balance
|
|
$
|
21,587
|
|
|
$
|
39,005
|
|
|
$
|
4,644
|
|
|
$
|
4,838
|
|
|
$
|
1,227
|
|
|
$
|
71,301
|
|
Allowance ending balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
10,527
|
|
|
$
|
—
|
|
|
$
|
230
|
|
|
$
|
34
|
|
|
$
|
10,791
|
|
Collectively evaluated for impairment
|
|
21,587
|
|
|
28,478
|
|
|
4,644
|
|
|
4,608
|
|
|
1,193
|
|
|
60,510
|
|
||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
|
4,134
|
|
|
84,005
|
|
|
—
|
|
|
2,992
|
|
|
35
|
|
|
91,166
|
|
||||||
Collectively evaluated for impairment
|
|
3,012,892
|
|
|
2,009,126
|
|
|
277,864
|
|
|
1,209,550
|
|
|
45,288
|
|
|
6,554,720
|
|
||||||
PCI loans
|
|
2,313
|
|
|
176
|
|
|
—
|
|
|
892
|
|
|
183
|
|
|
3,564
|
|
||||||
Ending balance
|
|
$
|
3,019,339
|
|
|
$
|
2,093,307
|
|
|
$
|
277,864
|
|
|
$
|
1,213,434
|
|
|
$
|
45,506
|
|
|
$
|
6,649,450
|
|
For the year ended December 31, 2016
|
|
Commercial Real Estate
|
|
Commercial and Industrial
|
|
Construction and Land
|
|
Consumer Real Estate
|
|
Other Consumer
|
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
|
$
|
14,123
|
|
|
$
|
24,975
|
|
|
$
|
3,013
|
|
|
$
|
3,992
|
|
|
$
|
990
|
|
|
$
|
47,093
|
|
Charge-offs
|
|
(79
|
)
|
|
(7,746
|
)
|
|
—
|
|
|
(107
|
)
|
|
(927
|
)
|
|
(8,859
|
)
|
||||||
Recoveries
|
|
21
|
|
|
472
|
|
|
—
|
|
|
109
|
|
|
340
|
|
|
942
|
|
||||||
Provision expense
|
|
4,238
|
|
|
17,763
|
|
|
2,062
|
|
|
490
|
|
|
847
|
|
|
25,400
|
|
||||||
Ending balance
|
|
$
|
18,303
|
|
|
$
|
35,464
|
|
|
$
|
5,075
|
|
|
$
|
4,484
|
|
|
$
|
1,250
|
|
|
$
|
64,576
|
|
Allowance ending balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
|
$
|
300
|
|
|
$
|
4,521
|
|
|
$
|
—
|
|
|
$
|
138
|
|
|
$
|
52
|
|
|
$
|
5,011
|
|
Collectively evaluated for impairment
|
|
18,003
|
|
|
30,943
|
|
|
5,075
|
|
|
4,346
|
|
|
1,198
|
|
|
59,565
|
|
||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
|
5,195
|
|
|
86,664
|
|
|
11,385
|
|
|
3,300
|
|
|
75
|
|
|
106,619
|
|
||||||
Collectively evaluated for impairment
|
|
2,659,644
|
|
|
1,884,263
|
|
|
283,509
|
|
|
1,070,732
|
|
|
53,683
|
|
|
5,951,831
|
|
||||||
PCI loans
|
|
5,616
|
|
|
233
|
|
|
—
|
|
|
891
|
|
|
233
|
|
|
6,973
|
|
||||||
Ending balance
|
|
$
|
2,670,455
|
|
|
$
|
1,971,160
|
|
|
$
|
294,894
|
|
|
$
|
1,074,923
|
|
|
$
|
53,991
|
|
|
$
|
6,065,423
|
|
For the year ended December 31, 2015
|
|
Commercial Real Estate
|
|
Commercial and Industrial
|
|
Construction and Land
|
|
Consumer Real Estate
|
|
Other Consumer
|
|
Total
|
||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
|
$
|
11,830
|
|
|
$
|
9,068
|
|
|
$
|
174
|
|
|
$
|
4,069
|
|
|
$
|
408
|
|
|
$
|
25,549
|
|
Charge-offs
|
|
(167
|
)
|
|
(3,129
|
)
|
|
—
|
|
|
(321
|
)
|
|
(1,090
|
)
|
|
(4,707
|
)
|
||||||
Recoveries
|
|
29
|
|
|
246
|
|
|
—
|
|
|
85
|
|
|
426
|
|
|
786
|
|
||||||
Provision expense
|
|
2,431
|
|
|
18,790
|
|
|
2,839
|
|
|
159
|
|
|
1,246
|
|
|
25,465
|
|
||||||
Ending balance
|
|
$
|
14,123
|
|
|
$
|
24,975
|
|
|
$
|
3,013
|
|
|
$
|
3,992
|
|
|
$
|
990
|
|
|
$
|
47,093
|
|
Allowance ending balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
|
$
|
366
|
|
|
$
|
1,470
|
|
|
$
|
—
|
|
|
$
|
81
|
|
|
$
|
61
|
|
|
$
|
1,978
|
|
Collectively evaluated for impairment
|
|
13,757
|
|
|
23,505
|
|
|
3,013
|
|
|
3,911
|
|
|
929
|
|
|
45,115
|
|
||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Individually evaluated for impairment
|
|
11,580
|
|
|
16,906
|
|
|
33
|
|
|
4,767
|
|
|
120
|
|
|
33,406
|
|
||||||
Collectively evaluated for impairment
|
|
2,155,351
|
|
|
1,595,548
|
|
|
269,675
|
|
|
931,140
|
|
|
69,433
|
|
|
5,021,147
|
|
||||||
PCI loans
|
|
10,612
|
|
|
215
|
|
|
—
|
|
|
850
|
|
|
277
|
|
|
11,954
|
|
||||||
Ending balance
|
|
$
|
2,177,543
|
|
|
$
|
1,612,669
|
|
|
$
|
269,708
|
|
|
$
|
936,757
|
|
|
$
|
69,830
|
|
|
$
|
5,066,507
|
|
|
Years Ended December 31,
|
||||||
|
2017
|
|
2016
|
||||
Balance at beginning of period
|
$
|
1,573
|
|
|
$
|
73
|
|
Charge-offs on lending-related commitments
|
—
|
|
|
—
|
|
||
Provision (recovery) for credit losses on lending-related commitments
|
(644
|
)
|
|
1,500
|
|
||
Balance at end of period
|
$
|
929
|
|
|
$
|
1,573
|
|
December 31, 2017
|
|
Unpaid Contractual
Principal
Balance
|
|
Recorded
Investment With No Allowance
|
|
Recorded
Investment With Allowance
|
|
Total Recorded Investment
|
|
Related
Allowance
|
||||||||||
Commercial real estate
|
|
$
|
4,411
|
|
|
$
|
4,134
|
|
|
$
|
—
|
|
|
$
|
4,134
|
|
|
$
|
—
|
|
Commercial and industrial
|
|
89,713
|
|
|
48,463
|
|
|
35,542
|
|
|
84,005
|
|
|
10,502
|
|
|||||
Consumer real estate
|
|
3,545
|
|
|
2,985
|
|
|
7
|
|
|
2,992
|
|
|
7
|
|
|||||
Other consumer
|
|
71
|
|
|
16
|
|
|
19
|
|
|
35
|
|
|
13
|
|
|||||
Total
|
|
$
|
97,740
|
|
|
$
|
55,598
|
|
|
$
|
35,568
|
|
|
$
|
91,166
|
|
|
$
|
10,522
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
|
$
|
5,388
|
|
|
$
|
4,429
|
|
|
$
|
766
|
|
|
$
|
5,195
|
|
|
$
|
272
|
|
Commercial and industrial
|
|
87,756
|
|
|
73,377
|
|
|
13,287
|
|
|
86,664
|
|
|
4,519
|
|
|||||
Construction and land
|
|
11,384
|
|
|
11,385
|
|
|
—
|
|
|
11,385
|
|
|
—
|
|
|||||
Consumer real estate
|
|
3,766
|
|
|
3,290
|
|
|
10
|
|
|
3,300
|
|
|
10
|
|
|||||
Other consumer
|
|
107
|
|
|
33
|
|
|
42
|
|
|
75
|
|
|
30
|
|
|||||
Total
|
|
$
|
108,401
|
|
|
$
|
92,514
|
|
|
$
|
14,105
|
|
|
$
|
106,619
|
|
|
$
|
4,831
|
|
1
|
No Warehouse Purchase Program loans were impaired at
December 31, 2017
or
2016
. Loans reported do not include PCI loans.
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||||
Commercial real estate
|
$
|
4,421
|
|
|
$
|
8
|
|
|
$
|
5,240
|
|
|
$
|
9
|
|
|
$
|
8,178
|
|
|
$
|
24
|
|
Commercial and industrial
|
83,508
|
|
|
—
|
|
|
28,634
|
|
|
1
|
|
|
19,595
|
|
|
8
|
|
||||||
Construction and land
|
2,273
|
|
|
—
|
|
|
901
|
|
|
—
|
|
|
84
|
|
|
—
|
|
||||||
Consumer real estate
|
2,786
|
|
|
14
|
|
|
4,831
|
|
|
14
|
|
|
5,269
|
|
|
7
|
|
||||||
Other consumer
|
264
|
|
|
4
|
|
|
95
|
|
|
4
|
|
|
202
|
|
|
2
|
|
||||||
Total
|
$
|
93,252
|
|
|
$
|
26
|
|
|
$
|
39,701
|
|
|
$
|
28
|
|
|
$
|
33,328
|
|
|
$
|
41
|
|
1
|
Loans reported do not include PCI loans.
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Commercial real estate
|
$
|
4,134
|
|
|
$
|
5,195
|
|
Commercial and industrial
|
84,003
|
|
|
86,664
|
|
||
Construction and land
|
—
|
|
|
11,385
|
|
||
Consumer real estate
|
6,190
|
|
|
7,987
|
|
||
Other consumer
|
76
|
|
|
158
|
|
||
Total
|
$
|
94,403
|
|
|
$
|
111,389
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Nonaccrual TDRs
(1)
|
$
|
17,294
|
|
|
$
|
11,701
|
|
Performing TDRs
(2)
|
768
|
|
|
454
|
|
||
Total
|
$
|
18,062
|
|
|
$
|
12,155
|
|
Outstanding commitments to lend additional funds to borrowers with TDR loans
|
—
|
|
|
—
|
|
1
|
Nonaccrual TDR loans are included in the nonaccrual loan totals.
|
2
|
Performing TDR loans are loans that have been performing under the restructured terms for at least
six months
and the Company is accruing interest on these loans.
|
December 31, 2017
|
Principal Deferrals
|
|
Combination of Rate Reduction & Principal Deferral
|
|
Other
|
|
Total
|
||||||||
Commercial and industrial
|
$
|
38
|
|
|
$
|
131
|
|
|
$
|
14,063
|
|
(1)
|
$
|
14,232
|
|
Total
|
$
|
38
|
|
|
$
|
131
|
|
|
$
|
14,063
|
|
|
$
|
14,232
|
|
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
685
|
|
|
$
|
—
|
|
|
$
|
7,090
|
|
(1)
|
$
|
7,775
|
|
Consumer real estate
|
—
|
|
|
79
|
|
|
—
|
|
|
79
|
|
||||
Other consumer
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Total
|
$
|
686
|
|
|
$
|
79
|
|
|
$
|
7,090
|
|
|
$
|
7,855
|
|
December 31, 2015
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
$
|
100
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
100
|
|
Commercial and industrial
|
—
|
|
|
—
|
|
|
191
|
|
|
191
|
|
||||
Consumer real estate
|
209
|
|
(2)
|
60
|
|
|
36
|
|
|
305
|
|
||||
Other consumer
|
1
|
|
|
—
|
|
|
3
|
|
|
4
|
|
||||
Total
|
$
|
310
|
|
|
$
|
60
|
|
|
$
|
230
|
|
|
$
|
600
|
|
1
|
Reserve-based energy relationships where the primary modification consisted of suspension of required borrowing base payments.
|
2
|
Principal deferrals include Chapter 7 bankruptcy loans for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt. Such loans are placed on non-accrual status.
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Consumer real estate
|
$
|
—
|
|
|
$
|
31
|
|
|
$
|
178
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Balance at beginning of period
|
$
|
2,515
|
|
|
$
|
3,356
|
|
Reclassifications from nonaccretable
|
602
|
|
|
429
|
|
||
Disposals
|
(187
|
)
|
|
(359
|
)
|
||
Accretion
|
(651
|
)
|
|
(911
|
)
|
||
Balance at end of period
|
$
|
2,279
|
|
|
$
|
2,515
|
|
December 31, 2017
|
|
30-59 Days Past Due
|
|
60-89 Days Past Due
|
|
90 Days and Greater Past Due
|
|
Total Loans Past Due
|
|
Current Loans
1
|
|
Total Loans
|
||||||||||||
Commercial real estate
|
|
$
|
9,414
|
|
|
$
|
—
|
|
|
$
|
250
|
|
|
$
|
9,664
|
|
|
$
|
3,009,675
|
|
|
$
|
3,019,339
|
|
Commercial and industrial
|
|
918
|
|
|
284
|
|
|
7,350
|
|
|
8,552
|
|
|
2,084,755
|
|
|
2,093,307
|
|
||||||
Construction and land
|
|
9,354
|
|
|
—
|
|
|
—
|
|
|
9,354
|
|
|
268,510
|
|
|
277,864
|
|
||||||
Consumer real estate
|
|
16,436
|
|
|
2,928
|
|
|
1,367
|
|
|
20,731
|
|
|
1,192,703
|
|
|
1,213,434
|
|
||||||
Other consumer
|
|
891
|
|
|
34
|
|
|
2
|
|
|
927
|
|
|
44,579
|
|
|
45,506
|
|
||||||
Total
|
|
$
|
37,013
|
|
|
$
|
3,246
|
|
|
$
|
8,969
|
|
|
$
|
49,228
|
|
|
$
|
6,600,222
|
|
|
$
|
6,649,450
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate
|
|
$
|
1,829
|
|
|
$
|
72
|
|
|
$
|
766
|
|
|
$
|
2,667
|
|
|
$
|
2,667,788
|
|
|
$
|
2,670,455
|
|
Commercial and industrial
|
|
20,910
|
|
|
495
|
|
|
46
|
|
|
21,451
|
|
|
1,949,709
|
|
|
1,971,160
|
|
||||||
Construction and land
|
|
19,517
|
|
|
283
|
|
|
—
|
|
|
19,800
|
|
|
275,094
|
|
|
294,894
|
|
||||||
Consumer real estate
|
|
10,487
|
|
|
1,916
|
|
|
1,199
|
|
|
13,602
|
|
|
1,061,321
|
|
|
1,074,923
|
|
||||||
Other consumer
|
|
1,523
|
|
|
31
|
|
|
6
|
|
|
1,560
|
|
|
52,431
|
|
|
53,991
|
|
||||||
Total
|
|
$
|
54,266
|
|
|
$
|
2,797
|
|
|
$
|
2,017
|
|
|
$
|
59,080
|
|
|
$
|
6,006,343
|
|
|
$
|
6,065,423
|
|
1
|
Includes acquired PCI loans with a total carrying value of
$3,338
and
$6,729
at
December 31, 2017
and
2016
, respectively.
|
December 31, 2017
|
|
Commercial Real Estate
|
|
Commercial and Industrial
|
|
Construction and Land
|
|
Consumer Real Estate
|
||||||||
Grade:
1
|
|
|
|
|
|
|
|
|
||||||||
Pass
|
|
$
|
2,980,656
|
|
|
$
|
1,953,496
|
|
|
$
|
277,864
|
|
|
$
|
1,203,236
|
|
Special Mention
|
|
30,656
|
|
|
43,161
|
|
|
—
|
|
|
1,408
|
|
||||
Substandard
|
|
8,027
|
|
|
96,546
|
|
|
—
|
|
|
7,762
|
|
||||
Doubtful
|
|
—
|
|
|
104
|
|
|
—
|
|
|
1,028
|
|
||||
Total
|
|
$
|
3,019,339
|
|
|
$
|
2,093,307
|
|
|
$
|
277,864
|
|
|
$
|
1,213,434
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Grade:
1
|
|
|
|
|
|
|
|
|
||||||||
Pass
|
|
$
|
2,648,842
|
|
|
$
|
1,712,171
|
|
|
$
|
283,423
|
|
|
$
|
1,062,549
|
|
Special Mention
|
|
7,972
|
|
|
155,110
|
|
|
—
|
|
|
2,083
|
|
||||
Substandard
|
|
12,875
|
|
|
103,815
|
|
|
11,471
|
|
|
8,252
|
|
||||
Doubtful
|
|
766
|
|
|
64
|
|
|
—
|
|
|
2,039
|
|
||||
Total
|
|
$
|
2,670,455
|
|
|
$
|
1,971,160
|
|
|
$
|
294,894
|
|
|
$
|
1,074,923
|
|
1
|
PCI loans are included in the substandard or doubtful categories for
December 31, 2017
and
2016
, respectively. These categories are generally consistent with the "substandard" and "doubtful" categories as defined by regulatory authorities.
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Performing
|
$
|
45,430
|
|
|
$
|
53,833
|
|
Non-performing
|
76
|
|
|
158
|
|
||
Total
|
$
|
45,506
|
|
|
$
|
53,991
|
|
|
Fair Value Measurements Using Level 2
|
||||||
|
December 31, 2017
|
|
December 31, 2016
|
||||
Assets:
|
|
|
|
||||
Agency residential mortgage-backed securities
|
$
|
189,466
|
|
|
$
|
218,551
|
|
Agency commercial mortgage-backed securities
|
9,235
|
|
|
9,347
|
|
||
Agency residential collateralized mortgage obligations
|
184,216
|
|
|
86,529
|
|
||
US government and agency securities
|
1,671
|
|
|
2,251
|
|
||
Municipal bonds
|
35,129
|
|
|
37,837
|
|
||
Total securities available for sale
|
$
|
419,717
|
|
|
$
|
354,515
|
|
|
|
|
|
||||
Loans held for sale
1
|
$
|
16,707
|
|
|
$
|
21,279
|
|
Derivative financial instruments:
|
|
|
|
||||
Interest rate lock commitments
|
358
|
|
|
379
|
|
||
Forward mortgage-backed securities trades
|
7
|
|
|
36
|
|
||
Loan customer counterparty
|
—
|
|
|
—
|
|
||
Financial institution counterparty
|
1,735
|
|
|
1,369
|
|
||
Liabilities:
|
|
|
|
||||
Derivative financial instruments:
|
|
|
|
||||
Interest rate lock commitments
|
—
|
|
|
—
|
|
||
Forward mortgage-backed securities trades
|
18
|
|
|
80
|
|
||
Loan customer counterparty
|
1,735
|
|
|
1,369
|
|
||
Financial institution counterparty
|
—
|
|
|
—
|
|
1
|
At
December 31, 2017
, loans held for sale had an aggregate outstanding principal balance of
$16,242
. There were no mortgage loans held for sale that were 90 days or greater past due or on non-accrual at
December 31, 2017
.
|
|
|
Fair Value Measurements Using Level 3
|
||||||
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Assets:
|
|
|
|
|
||||
Impaired loans
|
|
$
|
25,046
|
|
|
$
|
9,274
|
|
Foreclosed assets:
|
|
|
|
|
||||
Commercial real estate
|
|
6,694
|
|
|
10,638
|
|
||
Construction and land
|
|
859
|
|
|
194
|
|
||
Consumer real estate
|
|
192
|
|
|
—
|
|
||
Other
|
|
687
|
|
|
6
|
|
|
|
|
|
Fair Value
|
||||||||||||
December 31, 2017
|
|
Carrying
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Financial assets
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
293,456
|
|
|
$
|
293,456
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities held to maturity
|
|
173,509
|
|
|
—
|
|
|
174,926
|
|
|
—
|
|
||||
Loans held for investment, net
|
|
6,584,529
|
|
|
—
|
|
|
—
|
|
|
6,651,207
|
|
||||
Loans held for investment - Warehouse Purchase Program
|
|
1,154,588
|
|
|
—
|
|
|
—
|
|
|
1,171,354
|
|
||||
FHLB and other restricted securities, at cost
|
|
64,790
|
|
|
—
|
|
|
64,790
|
|
|
—
|
|
||||
Accrued interest receivable
|
|
24,596
|
|
|
24,596
|
|
|
—
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
|
||||||||
Deposits
|
|
$
|
6,767,683
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,326,572
|
|
FHLB advances
|
|
1,043,163
|
|
|
—
|
|
|
—
|
|
|
1,043,416
|
|
||||
Repurchase agreements
|
|
84,676
|
|
|
—
|
|
|
—
|
|
|
81,041
|
|
||||
Subordinated debt
|
|
134,522
|
|
|
—
|
|
|
—
|
|
|
141,972
|
|
||||
Accrued interest payable
|
|
2,729
|
|
|
2,729
|
|
|
—
|
|
|
—
|
|
||||
December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Financial assets
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
289,212
|
|
|
$
|
289,212
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities held to maturity
|
|
210,387
|
|
|
—
|
|
|
212,981
|
|
|
—
|
|
||||
Loans held for investment, net
|
|
5,998,596
|
|
|
—
|
|
|
—
|
|
|
6,080,165
|
|
||||
Loans held for investment - Warehouse Purchase Program
|
|
1,055,341
|
|
|
—
|
|
|
—
|
|
|
1,055,219
|
|
||||
FHLB and other restricted securities, at cost
|
|
43,266
|
|
|
—
|
|
|
43,266
|
|
|
—
|
|
||||
Accrued interest receivable
|
|
20,347
|
|
|
20,347
|
|
|
—
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
|
||||||||
Deposits
|
|
$
|
6,365,476
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,989,933
|
|
FHLB advances
|
|
833,682
|
|
|
—
|
|
|
—
|
|
|
830,930
|
|
||||
Repurchase agreement
|
|
86,691
|
|
|
—
|
|
|
—
|
|
|
84,265
|
|
||||
Subordinated debt
|
|
134,032
|
|
|
—
|
|
|
—
|
|
|
121,743
|
|
||||
Accrued interest payable
|
|
2,111
|
|
|
2,111
|
|
|
—
|
|
|
—
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
|
Outstanding Notional Balance
|
|
Asset Derivative Fair Value
|
|
Liability Derivative Fair Value
|
|
Outstanding Notional Balance
|
|
Asset Derivative Fair Value
|
|
Liability Derivative Fair Value
|
||||||||||||
IRLCs
|
|
$
|
10,337
|
|
|
$
|
358
|
|
|
$
|
—
|
|
|
$
|
10,952
|
|
|
$
|
379
|
|
|
$
|
—
|
|
Forward mortgage-backed securities trades
|
|
19,788
|
|
|
7
|
|
|
18
|
|
|
18,613
|
|
|
36
|
|
|
80
|
|
||||||
Commercial loan interest rate swaps and caps:
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loan customer counterparty
|
|
114,594
|
|
|
—
|
|
|
1,735
|
|
|
112,294
|
|
|
—
|
|
|
1,369
|
|
||||||
Financial institution counterparty
|
|
114,594
|
|
|
1,735
|
|
|
—
|
|
|
112,294
|
|
|
1,369
|
|
|
—
|
|
|
|
Weighted-Average Interest Rate
|
||||||||||
December 31, 2017
|
|
December 31, 2016
|
||||||||||
Received
|
|
Paid
|
|
Received
|
|
Paid
|
||||||
Loan customer counterparty
|
|
2.52
|
%
|
|
2.54
|
%
|
|
3.12
|
%
|
|
2.36
|
%
|
Derivatives not designated as hedging instruments
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
|||||||
IRLC's
|
|
$
|
(21
|
)
|
|
$
|
(43
|
)
|
|
$
|
8
|
|
Forward mortgage-backed securities trades
|
|
(479
|
)
|
|
13
|
|
|
(195
|
)
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Land
|
$
|
22,140
|
|
|
$
|
23,636
|
|
Buildings
|
57,079
|
|
|
59,298
|
|
||
Furniture, fixtures and equipment
|
20,218
|
|
|
19,561
|
|
||
Leasehold improvements
|
10,055
|
|
|
7,674
|
|
||
|
109,492
|
|
|
110,169
|
|
||
Less: accumulated depreciation
|
(39,799
|
)
|
|
(35,943
|
)
|
||
Total
|
$
|
69,693
|
|
|
$
|
74,226
|
|
|
Balance
|
||
2018
|
$
|
5,725
|
|
2019
|
5,069
|
|
|
2020
|
4,696
|
|
|
2021
|
4,443
|
|
|
2022
|
3,735
|
|
|
Thereafter
|
16,303
|
|
|
Total
|
$
|
39,971
|
|
|
Goodwill
|
|
Core Deposit Intangibles
|
||||
Balance as of December 31, 2015
|
$
|
180,776
|
|
|
$
|
1,030
|
|
Disposition of insurance subsidiary goodwill upon the sale of subsidiary operations
|
(2,217
|
)
|
|
—
|
|
||
Amortization of core deposit intangible
|
—
|
|
|
(365
|
)
|
||
Balance as of December 31, 2016
|
178,559
|
|
|
665
|
|
||
Amortization of core deposit intangible
|
—
|
|
|
(263
|
)
|
||
Balance as of December 31, 2017
|
$
|
178,559
|
|
|
$
|
402
|
|
|
Balance
|
||
2018
|
$
|
156
|
|
2019
|
101
|
|
|
2020
|
73
|
|
|
2021
|
48
|
|
|
2022
|
24
|
|
|
Thereafter
|
—
|
|
|
Balance
|
|
Weighted
Average Rate
|
|||
2018
|
$
|
860,102
|
|
|
1.16
|
%
|
2019
|
383,687
|
|
|
1.57
|
|
|
2020
|
41,093
|
|
|
1.47
|
|
|
2021
|
59,074
|
|
|
1.59
|
|
|
2022 and thereafter
|
23,434
|
|
|
1.57
|
|
|
Total
|
$
|
1,367,390
|
|
|
1.31
|
%
|
|
Years Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Interest-bearing demand
|
$
|
5,475
|
|
|
$
|
3,974
|
|
|
$
|
3,297
|
|
Savings and money market
|
16,845
|
|
|
7,288
|
|
|
3,644
|
|
|||
Time
|
14,374
|
|
|
9,772
|
|
|
6,186
|
|
|||
Total
|
$
|
36,694
|
|
|
$
|
21,034
|
|
|
$
|
13,127
|
|
|
|
December 31,
|
||||||||||||
|
|
2017
|
|
2016
|
||||||||||
|
|
Amount
|
|
Rate
1
|
|
Amount
|
|
Rate
1
|
||||||
Federal Home Loan Bank advances
|
|
$
|
1,043,163
|
|
|
1.51
|
%
|
|
$
|
833,682
|
|
|
0.71
|
%
|
Repurchase Agreements
|
|
|
|
|
|
|
|
|
||||||
Credit Suisse structured repurchase agreement
|
|
25,000
|
|
|
3.02
|
|
|
25,000
|
|
|
3.02
|
|
||
Overnight repurchase agreements with depositors
|
|
59,676
|
|
|
1.18
|
|
|
61,691
|
|
|
0.15
|
|
||
Subordinated Debt
|
|
|
|
|
|
|
|
|
||||||
Fixed to floating rate note maturing on December 1, 2025
|
|
125,000
|
|
|
5.50
|
|
|
125,000
|
|
|
5.58
|
|
||
Junior subordinated debentures
|
|
15,464
|
|
|
3.29
|
|
|
15,464
|
|
|
2.66
|
|
1
|
Rate at period-end, with the exception of the fixed to floating rate subordinated debt note, which is a weighted average rate calculated using period-end rates.
|
|
FHLB Advances
|
|
Repurchase Agreements
|
|
Subordinated Debt
|
|
Total
|
||||||||
2018
|
$
|
1,037,754
|
|
|
$
|
84,676
|
|
|
$
|
—
|
|
|
$
|
1,122,430
|
|
2019
|
2,313
|
|
|
—
|
|
|
—
|
|
|
2,313
|
|
||||
2020
|
932
|
|
|
—
|
|
|
—
|
|
|
932
|
|
||||
2021
|
856
|
|
|
—
|
|
|
—
|
|
|
856
|
|
||||
2022
|
695
|
|
|
—
|
|
|
—
|
|
|
695
|
|
||||
Thereafter
|
613
|
|
|
—
|
|
|
140,464
|
|
|
141,077
|
|
||||
|
$
|
1,043,163
|
|
|
$
|
84,676
|
|
|
$
|
140,464
|
|
|
$
|
1,268,303
|
|
|
Years ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Restricted stock
|
$
|
3,581
|
|
|
$
|
3,477
|
|
|
$
|
3,459
|
|
Stock options
|
3,881
|
|
|
2,537
|
|
|
2,018
|
|
|||
Income tax benefit
|
2,612
|
|
|
2,105
|
|
|
1,917
|
|
|
Time-Vested Shares
|
|
Performance-Based Shares
|
||||||||||
|
Shares
|
|
Weighted-
Average
Grant Date
Fair Value per Share
1
|
|
Shares
|
|
Weighted-
Average
Grant Date
Fair Value per Share
2
|
||||||
Non-vested at January 1, 2015
|
297,603
|
|
|
$
|
20.45
|
|
|
82,400
|
|
|
$
|
23.89
|
|
Granted
|
80,000
|
|
|
21.23
|
|
|
—
|
|
|
—
|
|
||
Vested
|
(131,142
|
)
|
|
19.98
|
|
|
(20,600
|
)
|
|
23.89
|
|
||
Non-vested at December 31, 2015
|
246,461
|
|
|
20.98
|
|
|
61,800
|
|
|
25.02
|
|
||
Granted
|
55,180
|
|
|
29.29
|
|
|
40,200
|
|
|
29.29
|
|
||
Vested
|
(101,465
|
)
|
|
20.70
|
|
|
(20,600
|
)
|
|
25.02
|
|
||
Non-vested at December 31, 2016
|
200,176
|
|
|
23.79
|
|
|
81,400
|
|
|
43.06
|
|
||
Granted
|
19,208
|
|
|
38.92
|
|
|
12,208
|
|
|
39.90
|
|
||
Vested
|
(90,796
|
)
|
|
21.67
|
|
|
(20,600
|
)
|
|
41.32
|
|
||
Non-vested at December 31, 2017
|
128,588
|
|
|
$
|
27.27
|
|
|
73,008
|
|
|
$
|
42.21
|
|
1
|
For restricted stock awards with time-based vesting conditions, the grant date fair value is based upon the closing stock price as quoted on the Nasdaq Stock Market on the grant date.
|
2
|
For restricted stock awards with performance-based vesting conditions, the value of the award is based upon the closing stock price as quoted on the Nasdaq Stock Market on the date of vesting. Until the final value is determined on the vesting date, the Company
|
|
2017
|
|
2016
|
|
2015
|
|||
Risk-free interest rate
|
2.18
|
%
|
|
1.37
|
%
|
|
1.80
|
%
|
Expected term of stock options (years)
|
6.2
|
|
|
6.3
|
|
|
6.2
|
|
Expected stock price volatility
|
31.85
|
%
|
|
32.07
|
%
|
|
31.14
|
%
|
Expected dividends
|
1.61
|
%
|
|
1.93
|
%
|
|
1.95
|
%
|
Options
|
|
Shares
|
|
Weighted-
Average
Exercise Price per Share
|
|
Weighted-
Average
Remaining
Contractual Term
|
|
Aggregate
Intrinsic Value
|
|||||
Outstanding at January 1, 2015
|
|
1,370,873
|
|
|
$
|
20.27
|
|
|
8.0
|
|
$
|
5,679
|
|
Granted
|
|
633,000
|
|
|
25.66
|
|
|
|
|
|
|||
Exercised
|
|
(58,855
|
)
|
|
16.12
|
|
|
|
|
|
|||
Forfeited
|
|
(79,268
|
)
|
|
20.89
|
|
|
|
|
|
|||
Outstanding at December 31, 2015
|
|
1,865,750
|
|
|
22.21
|
|
|
7.9
|
|
6,401
|
|
||
Granted
|
|
392,838
|
|
|
29.15
|
|
|
|
|
|
|||
Exercised
|
|
(175,192
|
)
|
|
19.08
|
|
|
|
|
|
|||
Forfeited
|
|
(75,316
|
)
|
|
25.57
|
|
|
|
|
|
|||
Outstanding at December 31, 2016
|
|
2,008,080
|
|
|
23.71
|
|
|
9.5
|
|
38,850
|
|
||
Granted
|
|
513,375
|
|
|
37.15
|
|
|
|
|
|
|||
Exercised
|
|
(221,984
|
)
|
|
21.23
|
|
|
|
|
|
|||
Forfeited
|
|
(92,228
|
)
|
|
28.80
|
|
|
|
|
|
|||
Outstanding at December 31, 2017
|
|
2,207,243
|
|
|
$
|
26.88
|
|
|
10.1
|
|
$
|
33,848
|
|
Fully vested and expected to vest
|
|
2,191,740
|
|
|
$
|
26.82
|
|
|
10.1
|
|
$
|
33,725
|
|
Exercisable at December 31, 2017
|
|
966,527
|
|
|
$
|
22.11
|
|
|
7.5
|
|
$
|
19,425
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Current expense
|
$
|
56,341
|
|
|
$
|
59,900
|
|
|
$
|
38,648
|
|
Deferred expense
|
(4,115
|
)
|
|
(6,798
|
)
|
|
(692
|
)
|
|||
Impact of Tax Cuts and Jobs Act - net future deductions
|
12,752
|
|
|
—
|
|
|
—
|
|
|||
Impact of Tax Cuts and Jobs Act - unrealized loss on AFS securities
|
741
|
|
|
—
|
|
|
—
|
|
|||
Total income tax expense
|
$
|
65,719
|
|
|
$
|
53,102
|
|
|
$
|
37,956
|
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Deferred tax assets:
|
|
|
|
||||
Allowance for loan losses
|
$
|
15,168
|
|
|
$
|
22,602
|
|
Deferred compensation arrangements
|
762
|
|
|
1,261
|
|
||
Self-funded health insurance
|
251
|
|
|
241
|
|
||
Non-accrual interest
|
503
|
|
|
966
|
|
||
Restricted stock and stock options
|
2,577
|
|
|
3,132
|
|
||
Accrued expenses
|
623
|
|
|
1,255
|
|
||
Fair value mark on purchased loans
|
965
|
|
|
2,348
|
|
||
Net unrealized loss on securities available for sale
|
1,111
|
|
|
1,465
|
|
||
Other
|
1,909
|
|
|
2,121
|
|
||
|
23,869
|
|
|
35,391
|
|
||
Deferred tax liabilities:
|
|
|
|
|
|||
Depreciation
|
(270
|
)
|
|
(336
|
)
|
||
Partnerships — CRA-purposed private equity funds
|
(941
|
)
|
|
(1,697
|
)
|
||
Fair value mark on subordinated debt
|
(743
|
)
|
|
(1,303
|
)
|
||
Other
|
(1,675
|
)
|
|
(2,824
|
)
|
||
|
(3,629
|
)
|
|
(6,160
|
)
|
||
Net deferred tax asset
|
$
|
20,240
|
|
|
$
|
29,231
|
|
|
At and for the Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Federal statutory rate times financial statement income
|
$
|
54,325
|
|
|
$
|
52,823
|
|
|
$
|
38,105
|
|
Effect of:
|
|
|
|
|
|
||||||
State taxes, net of federal benefit
|
239
|
|
|
267
|
|
|
37
|
|
|||
Bank-owned life insurance income
|
(423
|
)
|
|
(436
|
)
|
|
(419
|
)
|
|||
Municipal interest income
|
(978
|
)
|
|
(1,041
|
)
|
|
(1,025
|
)
|
|||
ESOP shares released
|
541
|
|
|
757
|
|
|
1,207
|
|
|||
Restricted stock and stock options
|
(1,578
|
)
|
|
—
|
|
|
—
|
|
|||
Sale of LegacyTexas Insurance Services, Inc.
|
—
|
|
|
640
|
|
|
—
|
|
|||
DTA write-down due to the Tax Cuts and Jobs Act
|
13,493
|
|
|
—
|
|
|
—
|
|
|||
Other
|
100
|
|
|
92
|
|
|
51
|
|
|||
Total income tax expense
|
$
|
65,719
|
|
|
$
|
53,102
|
|
|
$
|
37,956
|
|
Effective Tax Rate before deferred tax write-down
|
33.65
|
%
|
|
35.18
|
%
|
|
34.86
|
%
|
|||
Effective Tax Rate
|
42.34
|
%
|
|
35.18
|
%
|
|
34.86
|
%
|
|
Balance
|
||
Beginning balance
|
$
|
15,337
|
|
New loans
|
—
|
|
|
Effect of changes in composition of related parties
|
—
|
|
|
Repayments
|
(933
|
)
|
|
Ending balance
|
$
|
14,404
|
|
|
Actual
|
|
Required for Capital
Adequacy Purposes
|
|
To Be Well-Capitalized
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
991,713
|
|
|
11.87
|
%
|
|
$
|
668,142
|
|
|
8.00
|
%
|
|
$
|
835,178
|
|
|
10.00
|
%
|
Bank
|
939,655
|
|
|
11.25
|
|
|
668,096
|
|
|
8.00
|
|
|
835,120
|
|
|
10.00
|
|
|||
Tier 1 risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
796,887
|
|
|
9.54
|
|
|
501,107
|
|
|
6.00
|
|
|
501,107
|
|
|
6.00
|
|
|||
Bank
|
867,424
|
|
|
10.39
|
|
|
501,072
|
|
|
6.00
|
|
|
668,096
|
|
|
8.00
|
|
|||
Common equity tier 1 risk-based capital
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
784,960
|
|
|
9.40
|
|
|
375,830
|
|
|
4.50
|
|
|
n/a
1
|
|
|
n/a
1
|
|
|||
Bank
|
867,424
|
|
|
10.39
|
|
|
375,804
|
|
|
4.50
|
|
|
542,828
|
|
|
6.50
|
|
|||
Tier 1 leverage
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
796,887
|
|
|
9.17
|
|
|
347,731
|
|
|
4.00
|
|
|
n/a
1
|
|
|
n/a
1
|
|
|||
the Bank
|
867,424
|
|
|
9.98
|
|
|
347,808
|
|
|
4.00
|
|
|
434,759
|
|
|
5.00
|
|
|||
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
910,040
|
|
|
11.71
|
%
|
|
$
|
621,870
|
|
|
8.00
|
%
|
|
$
|
777,338
|
|
|
10.00
|
%
|
Bank
|
869,523
|
|
|
11.19
|
|
|
621,840
|
|
|
8.00
|
|
|
777,300
|
|
|
10.00
|
|
|||
Tier 1 risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
721,600
|
|
|
9.28
|
|
|
466,403
|
|
|
6.00
|
|
|
466,403
|
|
|
6.00
|
|
|||
Bank
|
803,374
|
|
|
10.34
|
|
|
466,380
|
|
|
6.00
|
|
|
621,840
|
|
|
8.00
|
|
|||
Common equity tier 1 risk-based capital
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Company
|
709,858
|
|
|
9.13
|
|
|
349,802
|
|
|
4.50
|
|
|
n/a
1
|
|
|
n/a
1
|
|
|||
Bank
|
803,374
|
|
|
10.34
|
|
|
349,785
|
|
|
4.50
|
|
|
505,245
|
|
|
6.50
|
|
|||
Tier 1 leverage
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
721,600
|
|
|
8.73
|
|
|
330,782
|
|
|
4.00
|
|
|
n/a
1
|
|
|
n/a
1
|
|
|||
Bank
|
803,374
|
|
|
9.71
|
|
|
330,873
|
|
|
4.00
|
|
|
413,591
|
|
|
5.00
|
|
1
|
Not applicable
|
|
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Unused commitments to extend credit
|
$
|
1,600,794
|
|
|
$
|
1,642,528
|
|
Unused capacity on Warehouse Purchase Program loans
|
738,412
|
|
|
892,659
|
|
||
Standby letters of credit
|
34,091
|
|
|
29,198
|
|
||
Total unused commitments/capacity
|
$
|
2,373,297
|
|
|
$
|
2,564,385
|
|
|
2017
|
|
2016
|
||||
ASSETS
|
|
|
|
||||
Cash on deposit at subsidiary
|
$
|
26,692
|
|
|
$
|
16,962
|
|
Investment in banking subsidiary
|
1,042,338
|
|
|
978,880
|
|
||
Receivable from banking subsidiary
|
12,278
|
|
|
10,317
|
|
||
ESOP note receivable and other assets
|
13,814
|
|
|
13,999
|
|
||
Total assets
|
$
|
1,095,122
|
|
|
$
|
1,020,158
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Borrowings
|
$
|
134,522
|
|
|
$
|
134,032
|
|
Other liabilities
|
726
|
|
|
761
|
|
||
Shareholders’ equity
|
959,874
|
|
|
885,365
|
|
||
Total liabilities and shareholders’ equity
|
$
|
1,095,122
|
|
|
$
|
1,020,158
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Cash dividends from subsidiary
|
$
|
35,000
|
|
|
$
|
—
|
|
|
$
|
24,500
|
|
Excess of earnings over dividend from subsidiary
|
61,341
|
|
|
103,572
|
|
|
48,677
|
|
|||
Interest income on ESOP loan
|
449
|
|
|
487
|
|
|
565
|
|
|||
Interest income on subordinated debt
|
13
|
|
|
11
|
|
|
17
|
|
|||
Other income
|
—
|
|
|
—
|
|
|
5
|
|
|||
|
96,803
|
|
|
104,070
|
|
|
73,764
|
|
|||
Interest expense
|
7,819
|
|
|
6,040
|
|
|
1,046
|
|
|||
Operating expenses
|
3,754
|
|
|
3,236
|
|
|
3,009
|
|
|||
Earnings before income tax benefit
|
85,230
|
|
|
94,794
|
|
|
69,709
|
|
|||
Income tax benefit
|
4,264
|
|
|
3,027
|
|
|
1,207
|
|
|||
Net income
|
$
|
89,494
|
|
|
$
|
97,821
|
|
|
$
|
70,916
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
89,494
|
|
|
$
|
97,821
|
|
|
$
|
70,916
|
|
Adjustments to reconcile net income to net cash from operating activities:
|
|
|
|
|
|
||||||
Excess of earnings over dividend from subsidiary
|
(61,341
|
)
|
|
(103,572
|
)
|
|
(48,677
|
)
|
|||
Amortization
|
490
|
|
|
530
|
|
|
171
|
|
|||
Activity in share-based compensation plans
|
5,501
|
|
|
3,152
|
|
|
3,068
|
|
|||
Net change in other assets
|
(207
|
)
|
|
(481
|
)
|
|
6,931
|
|
|||
Net change in other liabilities
|
(35
|
)
|
|
(38
|
)
|
|
(14,544
|
)
|
|||
Net cash provided by (used in) operating activities
|
33,902
|
|
|
(2,588
|
)
|
|
17,865
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Capital contribution (to) from subsidiary
|
—
|
|
|
(49,000
|
)
|
|
(40,000
|
)
|
|||
Cash and cash equivalents acquired from LegacyTexas Group, Inc.
|
—
|
|
|
—
|
|
|
201
|
|
|||
Payments received on ESOP notes receivable
|
393
|
|
|
981
|
|
|
1,495
|
|
|||
Net cash provided by (used in) investing activities
|
393
|
|
|
(48,019
|
)
|
|
(38,304
|
)
|
|||
Cash flows from financing activities
|
|
|
|
|
|
||||||
Proceeds from borrowings
|
—
|
|
|
73,439
|
|
|
73,407
|
|
|||
Repayments of borrowings
|
—
|
|
|
(24,929
|
)
|
|
(24,364
|
)
|
|||
Share repurchase
|
—
|
|
|
—
|
|
|
(7,989
|
)
|
|||
Net issuance of common stock under employee stock plans
|
4,712
|
|
|
3,755
|
|
|
1,284
|
|
|||
Payment of dividends
|
(29,277
|
)
|
|
(27,676
|
)
|
|
(25,747
|
)
|
|||
Net cash provided by (used in) financing activities
|
(24,565
|
)
|
|
24,589
|
|
|
16,591
|
|
|||
Net change in cash and cash equivalents
|
9,730
|
|
|
(26,018
|
)
|
|
(3,848
|
)
|
|||
Beginning cash and cash equivalents
|
16,962
|
|
|
42,980
|
|
|
46,828
|
|
|||
Ending cash and cash equivalents
|
$
|
26,692
|
|
|
$
|
16,962
|
|
|
$
|
42,980
|
|
|
Interest Income
|
|
Interest Expense
|
|
Net Interest Income
|
|
Provision
for Credit Losses |
|
Securities Gains and (Losses)
|
|
Net Income
|
|
Earnings per Share
|
||||||||||||||||
|
|
|
|
|
|
|
Basic
|
|
Diluted
|
||||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
First quarter
|
$
|
87,536
|
|
|
$
|
10,988
|
|
|
$
|
76,548
|
|
|
$
|
22,301
|
|
1
|
$
|
(19
|
)
|
|
$
|
18,190
|
|
|
0.39
|
|
|
0.38
|
|
Second quarter
|
88,747
|
|
|
13,027
|
|
|
75,720
|
|
|
6,255
|
|
|
—
|
|
|
27,935
|
|
|
0.60
|
|
|
0.59
|
|
||||||
Third quarter
|
94,463
|
|
|
15,499
|
|
|
78,964
|
|
|
7,157
|
|
|
(20
|
)
|
|
28,709
|
|
|
0.61
|
|
|
0.61
|
|
||||||
Fourth quarter
|
96,111
|
|
|
15,912
|
|
|
80,199
|
|
|
3,743
|
|
|
—
|
|
|
14,660
|
|
2
|
0.31
|
|
|
0.31
|
|
||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
First quarter
|
$
|
72,608
|
|
|
$
|
7,257
|
|
|
$
|
65,351
|
|
|
$
|
8,800
|
|
|
$
|
—
|
|
|
$
|
22,082
|
|
|
0.48
|
|
|
0.48
|
|
Second quarter
|
77,336
|
|
|
7,982
|
|
|
69,354
|
|
|
6,800
|
|
|
65
|
|
|
23,217
|
|
|
0.50
|
|
|
0.50
|
|
||||||
Third quarter
|
82,911
|
|
|
9,431
|
|
|
73,480
|
|
|
3,467
|
|
|
(3
|
)
|
|
27,217
|
|
|
0.59
|
|
|
0.58
|
|
||||||
Fourth quarter
|
84,497
|
|
|
10,413
|
|
|
74,084
|
|
|
7,833
|
|
|
(6
|
)
|
|
25,305
|
|
|
0.54
|
|
|
0.54
|
|
1
|
Includes the impact of a charge-off totaling
$16,360
on a corporate healthcare finance relationship, which was reported in the Company's commercial and industrial loan portfolio.
|
2
|
Includes the impact of a
$13,493
income tax adjustment to the Company's deferred tax asset related to the December 22, 2017 enactment of the Tax Cuts and Jobs Act.
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and Procedures
|
(a)
|
Evaluation of Disclosure Controls and Procedures
: An evaluation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Act”)) as of
December 31, 2017
, was carried out under the supervision and with the participation of our Chief Executive Officer, Principal Financial Officer and several other members of our senior management. Our Chief Executive Officer and Principal Financial Officer concluded that, as of
December 31, 2017
, our disclosure controls and procedures were effective in ensuring that the information we are required to disclose in the reports we file or submit under the Act is (i) accumulated and communicated to our management (including the Chief Executive Officer and Principal Financial Officer) in a timely manner, and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.
|
(b)
|
Management’s Report on Internal Control Over Financial Reporting
: Management of the Company is responsible for establishing and maintaining an effective system of internal control over financial reporting. The Company’s system of internal control over financial reporting is designed 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. There are inherent limitations in the effectiveness of any system of internal control over financial reporting, including the possibility of human error and circumvention or overriding of controls. Accordingly, even an effective system of internal control over financial reporting can provide only reasonable assurance with respect to financial statement preparation. Projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
|
(c)
|
Changes in Internal Control Over Financial Reporting
: During the quarter ended
December 31, 2017
, no change occurred in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
Item 14.
|
Principal Accountant Fees and Services
|
Item 15.
|
Exhibits, Financial Statement Schedules
|
(a)(1)
|
Financial Statements: See Part II—Item 8. Financial Statements and Supplementary Data.
|
|
|
(a)(2)
|
Financial Statement Schedules: All financial statement schedules have been omitted as the information is included in the notes to the consolidated financial statements or is not required under the related instructions or is not applicable.
|
|
|
(a)(3)
|
Exhibits: See below.
|
|
|
(b)
|
Exhibits:
|
Exhibit Number
|
|
Description
|
|
2.1
|
|
|
Agreement and Plan of Merger, dated as of November 25, 2013, by and between the Registrant and LegacyTexas Group, Inc.
(incorporated herein by reference to Exhibit 2.1 of the Registrant’s Current Report on Form 8-K filed with the SEC on November 25, 2013 (File No. 001-34737))
|
|
|
|
|
2.2
|
|
|
Amendment No. One to the Agreement and Plan of Merger, dated as of February 19, 2014, by and between the Registrant and LegacyTexas Group, Inc.
(incorporated herein by reference to Exhibit 2.3 of the Registrant’s Annual Report on Form 10-K filed with the SEC on February 26, 2014 (File No. 001-34737))
|
|
|
|
|
2.3
|
|
|
Amendment No. Two to the Agreement and Plan of Merger, dated as of August 29, 2014, by and between the Registrant and LegacyTexas Group, Inc.
(incorporated herein by reference to Exhibit 2.1 of the Registrant’s Current Report on Form 8-K filed with the SEC on August 29, 2014 (File No. 001-34737))
|
|
|
|
|
3.1
|
|
|
Charter of the Registrant
(incorporated herein by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed with the SEC on May 25, 2017 (File No. 001-34737))
|
|
|
|
|
3.2
|
|
|
Bylaws of the Registrant, as amended
(incorporated herein by reference to Exhibit 3.2 of the Registrant’s Quarterly Report on Form 10-Q filed with the SEC on July 25, 2017 (File No. 001-34737))
|
|
|
|
|
4.1
|
|
|
Certificate of Registrant’s Common Stock
(incorporated herein by reference to Exhibit 4.1 of the Registrant’s Current Report on Form 8-K filed with the SEC on January 6, 2015 (File No. 001-34737))
|
|
|
|
|
4.2
|
|
|
The Registrant hereby agrees to furnish to the Commission, upon request, the instruments defining the rights of the holders of each issue of long-term debt of the Registrant and its consolidated subsidiaries.
|
|
|
|
|
10.1
|
|
|
ViewPoint Bank Deferred Compensation Plan
(incorporated herein by reference to Exhibit 10.7 to the Registrant’s Registration Statement on Form S-1, as amended (File No. 0-24566-01))
|
|
|
|
|
10.2
|
|
|
Amended and Restated ViewPoint Bank Supplemental Executive Retirement Plan
(incorporated herein by reference to Exhibit 10.8 to the Registrant’s Registration Statement on Form S-1, as amended (File No. 0-24566-01))
|
|
|
|
|
10.3
|
|
|
|
|
|
|
|
10.4
|
|
|
Change in Control and Severance Benefits Agreement entered into between the Registrant and Mays Davenport
(incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on November 25, 2013 (File No. 001-34737)).
|
|
|
|
|
10.5
|
|
|
Form of Change In Control and Severance Benefits Agreement entered into between the Registrant and the following executive officers: Scott A. Almy, Charles D. Eikenberg, Thomas S. Swiley, and Mark L. Williamson
(incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on December 2, 2013 (File No. 001-34737)).
|
|
|
|
10.6
|
|
|
Amended and Restated Executive Employment Agreement entered into by the Registrant on December 2, 2013 with Kevin J. Hanigan
(incorporated herein by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the SEC on December 2, 2013 (File No. 001-34737)).
|
|
|
|
|
10.7
|
|
|
Registrant's 2007 Equity Incentive Plan
(incorporated herein by reference to Appendix A to the proxy statement filed with the SEC on March 30, 2007 (File No. 001-32992))
|
|
|
|
|
10.8
|
|
|
Registrant's 2012 Equity Incentive Plan
(incorporated herein by reference to Appendix A to the Registrant's proxy statement filed with the SEC on April 4, 2012 (File No. 001-34737))
|
|
|
|
|
10.9
|
|
|
Form of Incentive Stock Option Agreement under the 2012 Equity Incentive Plan
(incorporated herein by reference to Exhibit 10.2 to the Registrant's Registration Statement on Form S-8 filed with the SEC on June 14, 2012 (File No. 333-182122))
|
|
|
|
|
10.10
|
|
|
Form of Non-Qualified Stock Option Agreement under the 2012 Equity Incentive Plan
(incorporated herein by reference to Exhibit 10.3 to the Registrant's Registration Statement on Form S-8 filed with the SEC on June 14, 2012 (File No. 333-182122))
|
|
|
|
|
10.11
|
|
|
Form of Restricted Stock Agreement (Time-Based) under the 2012 Equity Incentive Plan
(incorporated herein by reference to Exhibit 10.4 to the Registrant's Registration Statement on Form S-8 filed with the SEC on June 14, 2012 (File No. 333-182122))
|
|
|
|
|
10.12
|
|
|
Form of Restricted Stock Agreement (Performance-Based) under the 2012 Equity Incentive Plan
(incorporated herein by reference to Exhibit 10.5 to the Registrant's Registration Statement on Form S-8 filed with the SEC on June 14, 2012 (File No. 333-182122))
|
|
|
|
|
10.13
|
|
|
Form of 2012 Equity Incentive Plan Restricted Stock Award and Non-Solicitation Agreement
(incorporated herein by reference to Exhibit 10.10 to the Registrant's Quarterly Report on Form 10-Q filed with the SEC on July 26, 2016 (File No. 001-34737))
|
|
|
|
|
10.14
|
|
|
Form of 2012 Equity Incentive Plan Non-Employee Restricted Stock Award Agreement
(incorporated herein by reference to Exhibit 10.11 to the Registrant's Quarterly Report on Form 10-Q filed with the SEC on July 26, 2016 (File No. 001-34737))
|
|
|
|
|
10.15
|
|
|
Registrant's 2017 Omnibus Incentive Plan
(incorporated herein by reference to Appendix A to the Registrant's proxy statement filed with the SEC on April 14, 2017 (File No. 001-34737))
|
|
|
|
|
10.16
|
|
|
Form of Incentive Stock Option Agreement under the 2017 Omnibus Incentive Plan
(incorporated herein by reference to Exhibit 99.2 to the Registrant’s Registration Statement on Form S-8 filed with the SEC on November 7, 2017 (File No. 333-221398))
|
|
|
|
|
10.17
|
|
|
Form of Non-Qualified Stock Option Agreement under the 2017 Omnibus Incentive Plan
(incorporated herein by reference to Exhibit 99.3 to the Registrant’s Registration Statement on Form S-8 filed with the SEC on November 7, 2017 (File No. 333-221398))
|
|
|
|
|
10.18
|
|
|
Form of Restricted Stock Agreement (Management) under the 2017 Omnibus Incentive Plan (Time-Based vesting)
(incorporated herein by reference to Exhibit 99.4 to the Registrant’s Registration Statement on Form S-8 filed with the SEC on November 7, 2017 (File No. 333-221398))
|
|
|
|
|
10.19
|
|
|
Form of Restricted Stock Agreement (Management) under the 2017 Omnibus Incentive Plan (Performance-Based vesting)
(incorporated herein by reference to Exhibit 99.5 to the Registrant’s Registration Statement on Form S-8 filed with the SEC on November 7, 2017 (File No. 333-221398))
|
|
|
|
|
10.20
|
|
|
Form of Restricted Stock Agreement (Non-Employee Director) under the 2017 Omnibus Incentive Plan (Time-Based vesting)
(incorporated herein by reference to Exhibit 99.6 to the Registrant’s Registration Statement on Form S-8 filed with the SEC on November 7, 2017 (File No. 333-221398))
|
|
|
|
|
11
|
|
|
Statement regarding computation of per share earnings
(See Note 3 of the Notes to Consolidated Audited Financial Statements included in this Form 10-K).
|
|
|
|
|
21
|
|
|
|
|
|
|
|
23
|
|
|
|
|
|
|
|
24
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
32
|
|
|
|
|
|
|
|
101
|
|
|
Financial statements from Annual Report on Form 10-K of the Registrant for the year ended December 31, 2017, formatted in eXtensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Audited Financial Statements.
|
|
|
LEGACYTEXAS FINANCIAL GROUP, INC.
(Registrant)
|
||
Date:
|
February 8, 2018
|
By:
|
/s/ Kevin J. Hanigan
|
|
|
|
|
Kevin J. Hanigan
|
|
|
|
|
President and Chief Executive Officer (Principal Executive Officer)
|
/s/ Anthony J. LeVecchio
|
Date:
|
February 8, 2018
|
Anthony J. LeVecchio, Chairman of the Board and Director
|
|
|
|
|
|
/s/ Arcilia Acosta
|
Date:
|
February 8, 2018
|
Arcilia Acosta, Director
|
|
|
|
|
|
/s/ George A. Fisk
|
Date:
|
February 8, 2018
|
George A. Fisk, Director
|
|
|
|
|
|
/s/ Bruce W. Hunt
|
Date:
|
February 8, 2018
|
Bruce W. Hunt, Director
|
|
|
|
|
|
/s/ James Brian McCall
|
Date:
|
February 8, 2018
|
James Brian McCall, Director
|
|
|
|
|
|
/s/ Karen H. O'Shea
|
Date:
|
February 8, 2018
|
Karen H. O'Shea, Director
|
|
|
|
|
|
/s/ Greg Wilkinson
|
Date:
|
February 8, 2018
|
Greg Wilkinson, Director
|
|
|
|
|
|
/s/ J. Mays Davenport
|
Date:
|
February 8, 2018
|
J. Mays Davenport, Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
|
|
|
|
|
|
•
|
Recognize and reward achievement of Bank's annual business goals.
|
•
|
Motivate and reward superior performance.
|
•
|
Attract and retain talent needed to grow the Bank.
|
•
|
Be competitive with market.
|
•
|
Encourage teamwork and collaboration among the Bank's leadership and across business groups.
|
•
|
Increase engagement and commitment to the Bank.
|
•
|
Ensure appropriate risk balance in plan design and governance policies.
|
•
|
Employees hired after January 1
st
of the plan year will receive a pro-rata award based on the number of weeks employed during the plan year.
|
•
|
Participants must be employed at the time of incentive distribution to receive an incentive award except death, disability and retirement.
|
Role
|
Below Threshold
|
Threshold (50%)
|
Target (100%)
|
Maximum (200%)
|
CEO
|
0%
|
40%
|
80%
|
160%
|
Other NEOs
|
0%
|
25%
|
50%
|
100%
|
Performance Measure
|
Performance Results and Payout
|
Weight
|
||
Threshold
(50% payout)
|
Target
(100% payout)
|
Stretch
(200% payout)
|
||
Net Interest Margin
|
35
th
Percentile
|
50
th
Percentile
|
90
th
Percentile
|
22.5%
|
Efficiency Ratio
|
22.5%
|
|||
Return on Average Equity
|
22.5%
|
|||
NPAs/Average Assets
|
22.5%
|
|||
Strategic Progress: Non-Interest Bearing Deposits/Total Deposits
|
See Table Below For Deposit Performance Goals 2018
|
10%
|
||
Total
|
|
|
|
100%
|
Performance Year
|
Non-Interest Bearing Deposit Performance Goals and Payout
|
||
Threshold
(50% payout)
|
Target
(100% payout)
|
Stretch
(200% payout)
|
|
2018
|
23%
|
24%
|
25%
|
Performance Goals
|
|
Performance and Payout
|
||||
Performance Measures
|
Weight
|
$
|
|
Actual Performance
|
Payout Allocation
(0% - 200%)
|
Payout
($)
|
Net Interest Margin
|
22.5%
|
$30,375
|
|
50
th
percentile (target)
|
100%
|
$30,375
|
Efficiency Ratio
|
22.5%
|
$30,375
|
|
35
th
percentile (threshold)
|
50%
|
$15,188
|
ROAE
|
22.5%
|
$30,375
|
|
80
th
percentile (stretch)
|
175%
|
$53,156
|
NPA / Avg. Assets
|
22.5%
|
$30,375
|
|
57
th
percentile
(between target and stretch)
|
117.5%
|
$36,691
|
Strategic Progress: Non-Interest Bearing Deposits
|
10%
|
$13,500
|
|
24% (target)
|
100%
|
$13,500
|
Total
|
100%
|
$135,000
|
|
|
$147,909
|
Direct Subsidiaries
|
|
Jurisdiction of Organization
|
|
Parent Entity
|
LegacyTexas Bank
|
|
Texas
|
|
LegacyTexas Financial Group, Inc.
|
|
|
|
|
|
Indirect Subsidiaries
|
|
Jurisdiction of Organization
|
|
Parent Entity
|
LegacyTexas Title Co.
|
|
Texas
|
|
LegacyTexas Bank
|
(1)
|
Registration Statement (Form S-8 No. 333-172615) pertaining to the ViewPoint Financial Group 2007 Equity Incentive Plan,
|
(2)
|
Registration Statement (Form S-8 No. 333-182122) pertaining to the ViewPoint Financial Group, Inc. 2012 Equity Incentive Plan,
|
(3)
|
Registration Statement (Form S-3 No. 333-208026) pertaining to the LegacyTexas Financial Group, Inc. “shelf” registration; and
|
(4)
|
Registration Statement (Form S-8 No. 333-221398) pertaining to the LegacyTexas Financial Group, Inc. 2017 Omnibus Incentive Plan
|
1.
|
I have reviewed this Annual Report on Form 10-K of LegacyTexas Financial Group, 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 control over financial reporting to be designed under our supervision, to provide reasonable assurances 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.
|
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 registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
February 8, 2018
|
|
By:
|
/s/ Kevin J. Hanigan
|
|
|
|
|
Kevin J. Hanigan,
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of LegacyTexas Financial Group, 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;
|
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.
|
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 registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
February 8, 2018
|
|
By:
|
/s/ J. Mays Davenport
|
|
|
|
|
J. Mays Davenport,
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
1)
|
The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
|
2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company as of the dates and for the periods presented in the financial statements included in such Report.
|
Date:
|
February 8, 2018
|
|
By:
|
/s/ Kevin J. Hanigan
|
|
|
|
|
Kevin J. Hanigan,
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
Date:
|
February 8, 2018
|
|
By:
|
/s/ J. Mays Davenport
|
|
|
|
|
J. Mays Davenport,
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|