ý
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ANNUAL REPORT TO SECTION 13 OR 15(d) OF THE SECURITIES 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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Texas
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13-4219346
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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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1600 Redbud Boulevard, Suite 400
McKinney, Texas
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75069-3257
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(Address of principal executive offices)
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(Zip Code)
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Title of Each Class
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Name of Each Exchange on which Registered
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Common Stock, par value $0.01 per share
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The Nasdaq Stock Market, LLC, Global Select Market
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Acquired Institution/Market
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Date of Acquisition
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Fair Value of Total Assets Acquired
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|
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(dollars in thousands)
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Town Center Bank
Dallas/North Texas
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July 31, 2010
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$37,451
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Farmersville Bancshares, Inc.
Dallas/North Texas
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September 30, 2010
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99,420
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I Bank Holding Company, Inc.
Austin/Central Texas
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April 1, 2012
|
172,587
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The Community Group, Inc.
Dallas/North Texas
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October 1, 2012
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110,967
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Collin Bank
Dallas/North Texas
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November 30, 2013
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168,320
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Live Oak Financial Corp.
Dallas/North Texas
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January 1, 2014
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131,008
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BOH Holdings, Inc.
Houston, Texas
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April 15, 2014
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1,188,893
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Houston City Bancshares, Inc.
Houston, Texas
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October 1, 2014
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350,747
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Grand Bank
Dallas, Texas
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November 1, 2015
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620,196
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Carlile Bancshares, Inc.
Dallas/North Texas, Central Texas, Colorado Front Range
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April 1, 2017
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2,444,155
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Integrity Bancshares, Inc.
Houston, Texas
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June 1, 2018
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851,875
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•
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finding suitable markets for expansion;
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•
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finding suitable candidates for acquisition;
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•
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attracting funding to support additional growth;
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•
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maintaining asset quality;
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•
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attracting and retaining qualified management; and
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•
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maintaining adequate regulatory capital.
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•
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actual or anticipated variations in quarterly results of operations;
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•
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recommendations by securities analysts;
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•
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operating and stock price performance of other companies that investors deem comparable to the Company;
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•
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new reports relating to trends, concerns and other issues in the financial services industry;
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•
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perceptions in the marketplace regarding the Company and/or its competitors;
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•
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new technology used, or services offered, by competitors;
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•
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significant acquisitions or business combinations involving the Company or its competitors;
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•
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the public float and trading volumes for the Company’s common stock;
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•
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changes in government regulations, including tax laws; and
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•
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volatility in economic conditions, including changes in interest rates, disruption in energy markets and changes in the global economy.
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•
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staggered terms for directors;
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•
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a provision that directors cannot be removed except for cause;
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•
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a provision that any special meeting of the Company’s shareholders may be called only by a majority of the Company’s board of directors, the Chairman or a holder or group of holders of at least 20% of the Company’s shares entitled to vote at such special meeting;
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•
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a provision that requires the vote of two-thirds of the shares outstanding for major corporate actions, such as an amendment to the Company’s certificate of formation or bylaws or the approval of a merger; and
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•
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a provision establishing certain advance notice procedures for nomination of candidates for election as directors and for shareholder proposals to be considered only at an annual or special meeting of shareholders.
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•
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$140.0 million of aggregate principal amount of subordinated indebtedness; and
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•
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$31.6 million
of subordinated debentures issued in connection with trust preferred securities
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December 31, 2013
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December 31, 2014
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December 31, 2015
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December 31, 2016
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December 31, 2017
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December 31, 2018
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||||||||||||
Independent Bank Group, Inc.
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$
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100.00
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$
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79.04
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$
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65.27
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$
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128.45
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$
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140.05
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$
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95.59
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|
S&P 500 Index
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100.00
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113.69
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115.26
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129.05
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157.22
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150.33
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||||||
KBW Nasdaq Regional Banking Index
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100.00
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102.42
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108.48
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150.80
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|
153.45
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|
126.59
|
|
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As of and for the Year Ended December 31,
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||||||||||||||
(dollars in thousands except per share data)
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2018
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2017
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2016
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2015
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2014
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||||||||||
Selected Income Statement Data
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||||||||||
Interest income
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$
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407,290
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$
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307,914
|
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$
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210,049
|
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$
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174,027
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$
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140,132
|
|
Interest expense
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81,038
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|
42,436
|
|
26,243
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19,929
|
|
15,987
|
|
|||||
Net interest income
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326,252
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265,478
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|
183,806
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154,098
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124,145
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|||||
Provision for loan losses
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9,860
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8,265
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9,440
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9,231
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|
5,359
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|||||
Net interest income after provision for loan losses
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316,392
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257,213
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174,366
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144,867
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118,786
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|||||
Noninterest income
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42,224
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41,287
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|
19,555
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16,128
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13,624
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|||||
Noninterest expense
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198,619
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176,813
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113,790
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103,198
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88,512
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|||||
Income tax expense
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31,738
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45,175
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26,591
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19,011
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14,920
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|||||
Net income
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128,259
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|
76,512
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53,540
|
|
38,786
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|
28,978
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|||||
Preferred stock dividends
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—
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—
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|
8
|
|
240
|
|
169
|
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|||||
Net income available to common shareholders
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128,259
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|
76,512
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53,532
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38,546
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28,809
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Per Share Data (Common Stock)
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||||||||||
Earnings:
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||||||||||
Basic
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$
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4.33
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$
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2.98
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$
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2.89
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$
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2.23
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$
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1.86
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Diluted
(1)
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4.33
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2.97
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2.88
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2.21
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1.85
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|||||
Dividends
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0.54
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0.40
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0.34
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0.32
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0.24
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Book value
(2)
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52.50
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47.28
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35.63
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32.79
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30.35
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|||||
Selected Period End Balance Sheet Data
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||||||||||
Total assets
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$
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9,849,965
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$
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8,684,463
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$
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5,852,801
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$
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5,055,000
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$
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4,132,639
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Cash and cash equivalents
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130,779
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431,102
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505,027
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293,279
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324,047
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|||||
Securities available for sale
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685,350
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763,002
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316,435
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273,463
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206,062
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|||||
Loans, held for sale
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32,727
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39,202
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9,795
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|
12,299
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|
4,453
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|||||
Loans, held for investment, excluding mortgage warehouse purchase
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7,717,510
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6,309,549
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4,572,771
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3,989,405
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3,201,084
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|||||
Mortgage warehouse purchase loans
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170,290
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164,694
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—
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—
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—
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|||||
Allowance for loan losses
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44,802
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|
39,402
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31,591
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|
27,043
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|
18,552
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|
|||||
Goodwill and core deposit intangible
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766,839
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|
664,702
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272,496
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275,000
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|
241,912
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|||||
Other real estate owned
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4,200
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|
7,126
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|
1,972
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|
2,168
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|
4,763
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|
|||||
Noninterest-bearing deposits
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2,145,930
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1,907,770
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1,117,927
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1,071,656
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818,022
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|
|||||
Interest-bearing deposits
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5,591,864
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4,725,052
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3,459,182
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2,956,623
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|
2,431,576
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|||||
Borrowings (other than junior subordinated debentures)
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427,316
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667,578
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568,045
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371,283
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|
306,147
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|
|||||
Junior subordinated debentures
(3)
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27,852
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|
27,654
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|
18,147
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|
18,147
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|
18,147
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|
|||||
Series A Preferred Stock
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—
|
|
—
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—
|
|
23,938
|
|
23,938
|
|
|||||
Total stockholders’ equity
|
1,606,433
|
|
1,336,018
|
|
672,365
|
|
603,371
|
|
540,851
|
|
|||||
Selected Performance Metrics
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|
|
|
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|
||||||||||
Return on average assets
(4)
|
1.35
|
%
|
0.96
|
%
|
0.98
|
%
|
0.88
|
%
|
0.87
|
%
|
|||||
Return on average equity
(4)
|
8.69
|
|
6.71
|
|
8.42
|
|
6.83
|
|
6.65
|
|
|
As of and for the Year Ended December 31,
|
||||||||||||||
(dollars in thousands except per share data)
|
2018
|
2017
|
2016
|
2015
|
2014
|
||||||||||
Return on average common equity
(4)
|
8.69
|
|
6.71
|
|
8.42
|
|
7.13
|
|
6.89
|
|
|||||
Net interest margin
(5)
|
3.97
|
|
3.84
|
|
3.81
|
|
4.05
|
|
4.19
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|
|||||
Efficiency ratio
(6)
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52.35
|
|
56.13
|
|
54.99
|
|
59.71
|
|
63.32
|
|
|||||
Dividend payout ratio
(7)
|
12.47
|
|
13.42
|
|
11.76
|
|
14.35
|
|
12.90
|
|
|||||
Credit Quality Ratios
|
|
|
|
|
|
||||||||||
Nonperforming assets to total assets
|
0.17
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%
|
0.26
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%
|
0.34
|
%
|
0.36
|
%
|
0.36
|
%
|
|||||
Nonperforming loans to total loans held for investment
(8) (9)
|
0.16
|
|
0.24
|
|
0.39
|
|
0.37
|
|
0.32
|
|
|||||
Allowance for loan losses to nonperforming loans
(8)
|
354.73
|
|
255.62
|
|
177.06
|
|
181.99
|
|
183.43
|
|
|||||
Allowance for loan losses to total loans held for investment
(9)
|
0.58
|
|
0.62
|
|
0.69
|
|
0.68
|
|
0.58
|
|
|||||
Net charge-offs to average loans outstanding (unaudited)
|
0.06
|
|
0.01
|
|
0.12
|
|
0.02
|
|
0.03
|
|
|||||
Capital Ratios
|
|
|
|
|
|
||||||||||
Common equity tier 1 capital to risk-weighted assets
(10)
|
10.05
|
%
|
9.61
|
%
|
8.20
|
%
|
7.94
|
%
|
n/a
|
|
|||||
Tier 1 capital to average assets
|
9.57
|
|
8.92
|
|
7.82
|
|
8.28
|
|
8.15
|
%
|
|||||
Tier 1 capital to risk-weighted assets
(10)
|
10.41
|
|
10.05
|
|
8.55
|
|
8.92
|
|
9.83
|
|
|||||
Total capital to risk-weighted assets
(10)
|
12.58
|
|
12.56
|
|
11.38
|
|
11.14
|
|
12.59
|
|
|||||
Total stockholders’ equity to total assets
|
16.31
|
|
15.38
|
|
11.49
|
|
11.94
|
|
13.09
|
|
|||||
Total common equity to total assets
(11)
|
16.31
|
|
15.38
|
|
11.49
|
|
11.94
|
|
12.51
|
|
(1)
|
The Company calculates its diluted earnings per share for each period shown as its net income divided by the weighted-average number of its common shares outstanding during the relevant period adjusted for the dilutive effect of its outstanding warrants to purchase shares of common stock. The increase in 2014 largely relates to shares issued in three acquisitions completed in 2014, the increase in 2015 relates to shares issued in the acquisition completed in November 2015, the increase in 2016 relates to the weighted effect of the shares issued in November 2015 along with shares issued in a private offering during 2016 and the increase in 2017 relates to shares issued in the acquisition completed in April 2017 along with shares issued in a public offering during 2017. The increase in 2018 relates to the shares issued in the acquisition completed June 1, 2018. See
Note 1
to the Company’s consolidated financial statements appearing elsewhere in this Annual Report on Form 10 K for more information regarding the dilutive effect of its outstanding warrants and regarding certain nonvested shares of common stock, the effect of which is anti-dilutive. Earnings per share on a basic and diluted basis were calculated using the following outstanding share amounts, which includes participating shares (those shares with dividend rights):
|
|
For the Year Ended December 31,
|
|||||||||
|
2018
|
2017
|
2016
|
2015
|
2014
|
|||||
Weighted average shares outstanding-basic
|
29,599,119
|
|
25,636.292
|
|
18,501,663
|
|
17,321,513
|
|
15,208,544
|
|
Weighted average shares outstanding-diluted
|
29,599,119
|
|
25,742.362
|
|
18,588,309
|
|
17,406,108
|
|
15,306,998
|
|
(2)
|
Book value per share equals the Company’s total common stockholders’ equity (excludes preferred stock) as of the date presented divided by the number of shares of its common stock outstanding as of the date presented. The number of shares of its common stock outstanding as of
December 31, 2018
,
2017
,
2016
,
2015
and
2014
was
30,600,582
shares, 28,254,893 shares, 18,870,312 shares, 18,399,194 shares and 17,032,669 shares, respectively.
|
(3)
|
Each of seven wholly owned, but nonconsolidated, subsidiaries of the Company holds a series of the Company’s junior subordinated debentures purchased by the subsidiary in connection with, and paid for with the proceeds of, the issuance of trust issued preferred securities by that subsidiary. The Company has guaranteed the payment of the amounts payable under each of those issues of trust preferred securities. During 2017 the Company assumed two trusts with the Carlile acquisition.
|
(4)
|
The Company has calculated its return on average assets and return on average equity for a period by dividing net income for that period by its average assets and average equity, as the case may be, for that period. The Company calculates its average assets and average equity for a period by dividing the sum of its total asset balance or total stockholder’s equity balance, as the case may be, as of the close of business on each day in the relevant period and dividing by the number of days in the period. The Company calculates its return on average common equity by excluding the preferred stock dividends to derive at net income available to common shareholders and excluding the average balance of its Series A preferred stock from the total average equity to derive at common average equity.
|
(5)
|
Net interest margin for a period represents net interest income for that period divided by average interest-earning assets for that period.
|
(6)
|
Efficiency ratio for a period represents noninterest expenses, excluding the amortization of core deposit intangibles, for that period divided by the sum of net interest income and noninterest income for that period.
|
(7)
|
The Company calculates its dividend payout ratio for each period presented as the dividends paid per share for such period (excluding cash distributions made to shareholders in connection with tax liabilities as described in note (3) above) divided by its basic earnings per share for such period.
|
(8)
|
Nonperforming loans include nonaccrual loans, loans past due 90 days or more and still accruing interest, and accruing loans modified under troubled debt restructurings.
|
(9)
|
Loans held for investment excludes mortgage purchase loans
|
(10)
|
Prior to 2015,
the Company calculated its risk-weighted assets using the standardized method of the Basel II Framework, as implemented by the Federal Reserve and the FDIC. Beginning January 1, 2015, the Company calculated its risk-weighted assets using the Basel III Framework. The common equity tier 1 capital to risk-weighted assets ratio was a new ratio required under the Basel III Framework, effective January 1, 2015. This ratio is not applicable for periods prior to January 1, 2015.
|
(11)
|
The Company calculates common equity as of the end of the period as total stockholders' equity less the preferred stock at period end.
|
•
|
our ability to sustain our current internal growth rate and total growth rate;
|
•
|
changes in geopolitical, business and economic events, occurrences and conditions, including changes in rates of inflation or deflation, nationally, regionally and in our target markets, particularly in Texas and Colorado;
|
•
|
worsening business and economic conditions nationally, regionally and in our target markets, particularly in Texas and Colorado, and the geographic areas in those states in which we operate;
|
•
|
our dependence on our management team and our ability to attract, motivate and retain qualified personnel;
|
•
|
the concentration of our business within our geographic areas of operation in Texas and Colorado;
|
•
|
changes in asset quality, including increases in default rates and loans and higher levels of nonperforming loans and loan charge-offs;
|
•
|
concentration of the loan portfolio of Independent Bank, before and after the completion of acquisitions of financial institutions, in commercial and residential real estate loans and changes in the prices, values and sales volumes of commercial and residential real estate, values and dales volumes of commercial and residential real estate;
|
•
|
the ability of Independent Bank to make loans with acceptable net interest margins and levels of risk of repayment and to otherwise invest in assets at acceptable yields and presenting acceptable investment risks;
|
•
|
inaccuracy of the assumptions and estimates that the managements of our Company and the financial institutions that we acquire make in establishing reserves for probable loan losses and other estimates;
|
•
|
lack of liquidity, including as a result of a reduction in the amount of sources of liquidity we currently have;
|
•
|
material increases or decreases in the amount of deposits held by Independent Bank or other financial institutions that we acquire and the cost of those deposits;
|
•
|
our access to the debt and equity markets and the overall cost of funding our operations;
|
•
|
regulatory requirements to maintain minimum capital levels or maintenance of capital at levels sufficient to support our anticipated growth;
|
•
|
changes in market interest rates that affect the pricing of the loans and deposits of each of Independent Bank and the financial institutions that we acquire and the net interest income of each of Independent Bank and the financial institutions that we acquire;
|
•
|
fluctuations in the market value and liquidity of the securities we hold for sale, including as a result of changes in market interest rates;
|
•
|
effects of competition from a wide variety of local, regional, national and other providers of financial, investment and insurance services;
|
•
|
changes in economic and market conditions that affect the amount and value of the assets of Independent Bank and of financial institutions that we acquire;
|
•
|
the institution and outcome of, and costs associated with, litigation and other legal proceedings against one of more of us, Independent Bank and financial institutions that we acquire or to which any of such entities is subject;
|
•
|
the occurrence of market conditions adversely affecting the financial industry generally;
|
•
|
the impact of recent and future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations and their application by our regulators, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act, and changes in federal government policies;
|
•
|
changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the SEC and the Public Company Accounting Oversight Board, as the case may be;
|
•
|
governmental monetary and fiscal policies;
|
•
|
changes in the scope and cost of FDIC insurance and other coverage;
|
•
|
the effects of war or other conflicts, acts of terrorism (including cyber attacks) or other catastrophic events, including storms, droughts, tornadoes, hurricanes and flooding, that may affect general economic conditions;
|
•
|
our actual cost savings resulting from previous or future acquisitions are less than expected, we are unable to realize those cost savings as soon as expected, or we incur additional or unexpected costs;
|
•
|
our revenues after previous or future acquisitions are less than expected;
|
•
|
the liquidity of, and changes in the amounts and sources of liquidity available to, us, before and after the acquisition of any financial institutions that we acquire;
|
•
|
deposit attrition, operating costs, customer loss and business disruption before and after our completed acquisitions, including, without limitation, difficulties in maintaining relationships with employees, may be greater than we expected;
|
•
|
the effects of the combination of the operations of financial institutions that we have acquired in the recent past or may acquire in the future with our operations and the operations of Independent Bank, the effects of the integration of such operations being unsuccessful, and the effects of such integration being more difficult, time-consuming or costly than expected or not yielding the cost savings that we expect;
|
•
|
the impact of investments that we or Independent Bank may have made or may make and the changes in the value of those investments;
|
•
|
the quality of the assets of financial institutions and companies that we have acquired in the recent past or may acquire in the future being different than we determined or determine in our due diligence investigation in connection with the acquisition of such financial institutions and any inadequacy of loan loss reserves relating to, and exposure to unrecoverable losses on, loans acquired;
|
•
|
our ability to continue to identify acquisition targets and successfully acquire desirable financial institutions to sustain our growth, to expand our presence in our markets and to enter new markets;
|
•
|
general business and economic conditions in our markets change or are less favorable than expected;
|
•
|
changes occur in business conditions and inflation;
|
•
|
an increase in the rate of personal or commercial customers’ bankruptcies;
|
•
|
technology-related changes are harder to make or are more expensive than expected;
|
•
|
attacks on the security of, and breaches of, our Independent Bank's digital information systems, the costs we or Independent Bank incur to provide security against such attacks and any costs and liability we or Independent Bank incurs in connection with any breach of those systems;
|
•
|
the potential impact of technology and "FinTech" entities on the banking industry generally; and
|
•
|
the other factors that are described or referenced in Part I, Item 1A. of this Annual Report on Form 10-K under the caption "Risk Factors."
|
(dollars in millions)
|
Acquisition Date
|
Total Assets
|
Gross Loans
|
Deposits
|
Carlile Bancshares, Inc.
|
April 1, 2017
|
$2,444.2
|
$1,384.2
|
$1,825.2
|
Integrity Bancshares, Inc.
|
June 1, 2018
|
851.9
|
651.8
|
593.1
|
|
|
For the Years Ended December 31,
|
|||||||||||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||||||||||||||
|
|
Average
Outstanding
Balance
|
|
Interest
|
|
Yield/
Rate |
|
Average
Outstanding Balance |
|
Interest
|
|
Yield/
Rate |
|
Average
Outstanding Balance |
|
Interest
|
|
Yield/
Rate |
|||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans
(1)
|
|
$
|
7,254,635
|
|
|
$
|
384,791
|
|
|
5.30
|
%
|
|
$
|
5,871,990
|
|
|
$
|
290,357
|
|
|
4.94
|
%
|
|
$
|
4,234,368
|
|
|
$
|
203,577
|
|
|
4.81
|
%
|
Taxable securities
|
|
603,474
|
|
|
14,007
|
|
|
2.32
|
|
|
481,323
|
|
|
8,229
|
|
|
1.71
|
|
|
221,905
|
|
|
2,681
|
|
|
1.21
|
%
|
||||||
Nontaxable securities
|
|
177,348
|
|
|
4,580
|
|
|
2.58
|
|
|
157,086
|
|
|
3,877
|
|
|
2.47
|
|
|
74,227
|
|
|
1,768
|
|
|
2.38
|
%
|
||||||
Interest bearing deposits and other
|
|
179,411
|
|
|
3,912
|
|
|
2.18
|
|
|
409,976
|
|
|
5,451
|
|
|
1.33
|
|
|
290,316
|
|
|
2,023
|
|
|
0.70
|
%
|
||||||
Total interest-earning assets
|
|
8,214,868
|
|
|
$
|
407,290
|
|
|
4.96
|
|
|
6,920,375
|
|
|
$
|
307,914
|
|
|
4.45
|
|
|
4,820,816
|
|
|
$
|
210,049
|
|
|
4.36
|
%
|
|||
Noninterest-earning assets
|
|
1,264,066
|
|
|
|
|
|
|
1,046,046
|
|
|
|
|
|
|
648,726
|
|
|
|
|
|
||||||||||||
Total assets
|
|
$
|
9,478,934
|
|
|
|
|
|
|
$
|
7,966,421
|
|
|
|
|
|
|
$
|
5,469,542
|
|
|
|
|
|
|||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Checking accounts
|
|
$
|
2,943,519
|
|
|
$
|
26,593
|
|
|
0.90
|
%
|
|
$
|
2,630,477
|
|
|
$
|
13,305
|
|
|
0.51
|
%
|
|
$
|
1,761,509
|
|
|
$
|
7,770
|
|
|
0.44
|
%
|
Savings accounts
|
|
290,325
|
|
|
703
|
|
|
0.24
|
|
|
263,381
|
|
|
380
|
|
|
0.14
|
|
|
150,223
|
|
|
260
|
|
|
0.17
|
|
||||||
Money market accounts
|
|
998,916
|
|
|
19,043
|
|
|
1.91
|
|
|
605,064
|
|
|
6,168
|
|
|
1.02
|
|
|
429,647
|
|
|
1,911
|
|
|
0.44
|
|
||||||
Certificates of deposit
|
|
1,009,644
|
|
|
14,428
|
|
|
1.43
|
|
|
1,002,753
|
|
|
8,665
|
|
|
0.86
|
|
|
830,964
|
|
|
6,134
|
|
|
0.74
|
|
||||||
Total deposits
|
|
5,242,404
|
|
|
60,767
|
|
|
1.16
|
|
|
4,501,675
|
|
|
28,518
|
|
|
0.63
|
|
|
3,172,343
|
|
|
16,075
|
|
|
0.51
|
|
||||||
FHLB advances
|
|
515,479
|
|
|
10,264
|
|
|
1.99
|
|
|
483,923
|
|
|
5,858
|
|
|
1.21
|
|
|
465,010
|
|
|
4,119
|
|
|
0.89
|
|
||||||
Other borrowings and repurchase agreements
|
|
137,549
|
|
|
8,398
|
|
|
6.11
|
|
|
117,162
|
|
|
6,898
|
|
|
5.89
|
|
|
87,943
|
|
|
5,428
|
|
|
6.17
|
|
||||||
Junior subordinated debentures
|
|
27,761
|
|
|
1,609
|
|
|
5.80
|
|
|
25,252
|
|
|
1,162
|
|
|
4.60
|
|
|
18,147
|
|
|
621
|
|
|
3.42
|
|
||||||
Total interest-bearing liabilities
|
|
5,923,193
|
|
|
81,038
|
|
|
1.37
|
|
|
5,128,012
|
|
|
42,436
|
|
|
0.83
|
|
|
3,743,443
|
|
|
26,243
|
|
|
0.70
|
|
||||||
Noninterest-bearing checking accounts
|
|
2,052,675
|
|
|
|
|
|
|
1,671,872
|
|
|
|
|
|
|
1,076,340
|
|
|
|
|
|
||||||||||||
Noninterest-bearing liabilities
|
|
26,378
|
|
|
|
|
|
|
26,964
|
|
|
|
|
|
|
13,895
|
|
|
|
|
|
||||||||||||
Stockholders’ equity
|
|
1,476,688
|
|
|
|
|
|
|
1,139,573
|
|
|
|
|
|
|
635,864
|
|
|
|
|
|
||||||||||||
Total liabilities and equity
|
|
$
|
9,478,934
|
|
|
|
|
|
|
$
|
7,966,421
|
|
|
|
|
|
|
$
|
5,469,542
|
|
|
|
|
|
|||||||||
Net interest income
|
|
|
|
$
|
326,252
|
|
|
|
|
|
|
$
|
265,478
|
|
|
|
|
|
|
$
|
183,806
|
|
|
|
|||||||||
Interest rate spread
|
|
|
|
|
|
3.59
|
%
|
|
|
|
|
|
3.62
|
%
|
|
|
|
|
|
3.66
|
%
|
||||||||||||
Net interest margin
(2)
|
|
|
|
|
|
3.97
|
|
|
|
|
|
|
3.84
|
|
|
|
|
|
|
3.81
|
|
||||||||||||
Net interest income and margin (tax equivalent basis)
(3)
|
|
|
|
$
|
328,090
|
|
|
3.99
|
|
|
|
|
$
|
268,235
|
|
|
3.88
|
|
|
|
|
$
|
185,429
|
|
|
3.85
|
|
||||||
Average interest earning assets to interest bearing liabilities
|
|
|
|
|
|
138.69
|
|
|
|
|
|
|
134.95
|
|
|
|
|
|
|
128.78
|
|
(1)
|
Average loan balances include nonaccrual loans.
|
(2)
|
Net interest margins for the periods presented represent: (i) the difference between interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (ii) average interest-earning assets for the period.
|
(3)
|
A tax-equivalent adjustment has been computed using a federal income tax rate of 21%, 35% and 35% for the years ended December 31,
2018
,
2017
, and
2016
, respectively.
|
|
For the Year Ended December 31, 2018 vs. 2017
|
|
For the Year Ended December 31, 2017 vs. 2016
|
||||||||||||||||||||
|
Increase (Decrease) Due to
|
|
Total Increase (Decrease)
|
|
Increase (Decrease) Due to
|
|
Total Increase (Decrease)
|
||||||||||||||||
(dollars in thousands)
|
Volume
|
|
Rate
|
|
|
Volume
|
|
Rate
|
|
||||||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans
|
$
|
72,165
|
|
|
$
|
22,269
|
|
|
$
|
94,434
|
|
|
$
|
80,823
|
|
|
$
|
5,957
|
|
|
$
|
86,780
|
|
Taxable securities
|
2,398
|
|
|
3,380
|
|
|
5,778
|
|
|
4,094
|
|
|
1,454
|
|
|
5,548
|
|
||||||
Nontaxable securities
|
517
|
|
|
186
|
|
|
703
|
|
|
2,043
|
|
|
66
|
|
|
2,109
|
|
||||||
Interest bearing deposits and other
|
(3,983
|
)
|
|
2,444
|
|
|
(1,539
|
)
|
|
1,070
|
|
|
2,358
|
|
|
3,428
|
|
||||||
Total interest-earning assets
|
$
|
71,097
|
|
|
$
|
28,279
|
|
|
$
|
99,376
|
|
|
$
|
88,030
|
|
|
$
|
9,835
|
|
|
$
|
97,865
|
|
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Checking accounts
|
$
|
1,747
|
|
|
$
|
11,541
|
|
|
$
|
13,288
|
|
|
$
|
4,266
|
|
|
$
|
1,269
|
|
|
$
|
5,535
|
|
Savings accounts
|
42
|
|
|
281
|
|
|
323
|
|
|
169
|
|
|
(49
|
)
|
|
120
|
|
||||||
Limited access money market accounts
|
5,510
|
|
|
7,365
|
|
|
12,875
|
|
|
1,022
|
|
|
3,235
|
|
|
4,257
|
|
||||||
Certificates of deposit
|
60
|
|
|
5,703
|
|
|
5,763
|
|
|
1,387
|
|
|
1,144
|
|
|
2,531
|
|
||||||
Total deposits
|
7,359
|
|
|
24,890
|
|
|
32,249
|
|
|
6,844
|
|
|
5,599
|
|
|
12,443
|
|
||||||
FHLB advances
|
405
|
|
|
4,001
|
|
|
4,406
|
|
|
174
|
|
|
1,565
|
|
|
1,739
|
|
||||||
Other borrowings and repurchase agreements
|
1,237
|
|
|
263
|
|
|
1,500
|
|
|
1,730
|
|
|
(260
|
)
|
|
1,470
|
|
||||||
Junior subordinated debentures
|
124
|
|
|
323
|
|
|
447
|
|
|
288
|
|
|
253
|
|
|
541
|
|
||||||
Total interest-bearing liabilities
|
9,125
|
|
|
29,477
|
|
|
38,602
|
|
|
9,036
|
|
|
7,157
|
|
|
16,193
|
|
||||||
Net interest income
|
$
|
61,972
|
|
|
$
|
(1,198
|
)
|
|
$
|
60,774
|
|
|
$
|
78,994
|
|
|
$
|
2,678
|
|
|
$
|
81,672
|
|
(dollars in thousands)
|
For the Year Ended December 31,
|
|
Variance
|
|
For the Year Ended December 31,
|
|
Variance
|
||||||||||||||||||||||
2018
|
|
2017
|
|
2018 v. 2017
|
|
2017
|
|
2016
|
|
2017 v. 2016
|
|||||||||||||||||||
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest and fees on loans
|
$
|
384,791
|
|
|
$
|
290,357
|
|
|
$
|
94,434
|
|
|
32.5
|
%
|
|
$
|
290,357
|
|
|
$
|
203,577
|
|
|
$
|
86,780
|
|
|
42.6
|
%
|
Interest on taxable securities
|
14,007
|
|
|
8,229
|
|
|
5,778
|
|
|
70.2
|
|
|
8,229
|
|
|
2,681
|
|
|
5,548
|
|
|
206.9
|
|
||||||
Interest on nontaxable securities
|
4,580
|
|
|
3,877
|
|
|
703
|
|
|
18.1
|
|
|
3,877
|
|
|
1,768
|
|
|
2,109
|
|
|
119.3
|
|
||||||
Interest on interest-bearing deposits and other
|
3,912
|
|
|
5,451
|
|
|
(1,539
|
)
|
|
(28.2
|
)
|
|
5,451
|
|
|
2,023
|
|
|
3,428
|
|
|
169.5
|
|
||||||
Total interest income
|
$
|
407,290
|
|
|
$
|
307,914
|
|
|
$
|
99,376
|
|
|
32.3
|
%
|
|
$
|
307,914
|
|
|
$
|
210,049
|
|
|
$
|
97,865
|
|
|
46.6
|
%
|
(dollars in thousands)
|
For the Year Ended December 31,
|
|
Variance
|
|
For the Year Ended December 31,
|
|
Variance
|
||||||||||||||||||||||
2018
|
|
2017
|
|
2018 v. 2017
|
|
2017
|
|
2016
|
|
2017 v. 2016
|
|||||||||||||||||||
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest on deposits
|
$
|
60,767
|
|
|
$
|
28,518
|
|
|
$
|
32,249
|
|
|
113.1
|
%
|
|
$
|
28,518
|
|
|
$
|
16,075
|
|
|
$
|
12,443
|
|
|
77.4
|
%
|
Interest of FHLB advances
|
10,264
|
|
|
5,858
|
|
|
4,406
|
|
|
75.2
|
|
|
5,858
|
|
|
4,119
|
|
|
1,739
|
|
|
42.2
|
|
||||||
Interest on other borrowings and repurchase agreements
|
8,398
|
|
|
6,898
|
|
|
1,500
|
|
|
21.7
|
|
|
6,898
|
|
|
5,428
|
|
|
1,470
|
|
|
27.1
|
|
||||||
Interest on junior subordinated debentures
|
1,609
|
|
|
1,162
|
|
|
447
|
|
|
38.5
|
|
|
1,162
|
|
|
621
|
|
|
541
|
|
|
87.1
|
|
||||||
Total interest expense
|
$
|
81,038
|
|
|
$
|
42,436
|
|
|
$
|
38,602
|
|
|
91.0
|
%
|
|
$
|
42,436
|
|
|
$
|
26,243
|
|
|
$
|
16,193
|
|
|
61.7
|
%
|
|
Quarter Ended 2018
|
|||||||||||
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||
(dollars in thousands, except per share data)
|
(unaudited)
|
|||||||||||
Interest income
|
$
|
112,805
|
|
$
|
109,289
|
|
$
|
97,082
|
|
$
|
88,114
|
|
Interest expense
|
25,697
|
|
23,021
|
|
18,173
|
|
14,147
|
|
||||
Net interest income
|
87,108
|
|
86,268
|
|
78,909
|
|
73,967
|
|
||||
Provision for loan losses
|
2,910
|
|
1,525
|
|
2,730
|
|
2,695
|
|
||||
Net interest income after provision for loan losses
|
84,198
|
|
84,743
|
|
76,179
|
|
71,272
|
|
||||
Noninterest income
|
9,887
|
|
12,749
|
|
10,133
|
|
9,455
|
|
||||
Noninterest expense
|
51,848
|
|
52,655
|
|
49,158
|
|
44,958
|
|
||||
Income before income taxes
|
42,237
|
|
44,837
|
|
37,154
|
|
35,769
|
|
||||
Provision for income taxes
|
8,273
|
|
9,141
|
|
7,519
|
|
6,805
|
|
||||
Net income
|
$
|
33,964
|
|
$
|
35,696
|
|
$
|
29,635
|
|
$
|
28,964
|
|
Comprehensive income
|
$
|
39,879
|
|
$
|
31,633
|
|
$
|
28,644
|
|
$
|
20,518
|
|
Basic earnings per share
|
$
|
1.11
|
|
$
|
1.17
|
|
$
|
1.02
|
|
$
|
1.02
|
|
Diluted earnings per share
|
1.11
|
|
1.17
|
|
1.02
|
|
1.02
|
|
|
Quarter Ended 2017
|
|||||||||||
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||
(dollars in thousands, except per share data)
|
(unaudited)
|
|||||||||||
Interest income
|
$
|
87,420
|
|
$
|
84,672
|
|
$
|
79,883
|
|
$
|
55,939
|
|
Interest expense
|
12,166
|
|
11,815
|
|
10,383
|
|
8,072
|
|
||||
Net interest income
|
75,254
|
|
72,857
|
|
69,500
|
|
47,867
|
|
||||
Provision for loan losses
|
1,897
|
|
1,873
|
|
2,472
|
|
2,023
|
|
||||
Net interest income after provision for loan losses
|
73,357
|
|
70,984
|
|
67,028
|
|
45,844
|
|
||||
Noninterest income
|
13,579
|
|
12,130
|
|
10,995
|
|
4,583
|
|
||||
Noninterest expense
|
49,553
|
|
47,904
|
|
51,328
|
|
28,028
|
|
||||
Income before income taxes
|
37,383
|
|
35,210
|
|
26,695
|
|
22,399
|
|
||||
Provision for income taxes
|
18,190
|
|
11,696
|
|
8,561
|
|
6,728
|
|
||||
Net income
|
$
|
19,193
|
|
$
|
23,514
|
|
$
|
18,134
|
|
$
|
15,671
|
|
Comprehensive income
|
$
|
15,228
|
|
$
|
23,372
|
|
$
|
21,554
|
|
$
|
16,971
|
|
Basic earnings per share
|
$
|
0.69
|
|
$
|
0.85
|
|
$
|
0.65
|
|
$
|
0.83
|
|
Diluted earnings per share
|
0.68
|
|
0.84
|
|
0.65
|
|
0.82
|
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||
(dollars in thousands)
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
|||||||||||||||
Commercial
|
$
|
1,361,104
|
|
|
17.2
|
%
|
|
$
|
1,059,984
|
|
|
16.3
|
%
|
|
$
|
630,805
|
|
|
13.7
|
%
|
|
$
|
731,818
|
|
|
18.3
|
%
|
|
$
|
672,052
|
|
|
21.0
|
%
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
4,141,356
|
|
|
52.3
|
|
|
3,369,892
|
|
|
51.7
|
|
|
2,459,221
|
|
|
53.7
|
|
|
1,949,734
|
|
|
48.7
|
|
|
1,450,434
|
|
|
45.2
|
|
|||||
Commercial construction, land and land development
|
905,421
|
|
|
11.4
|
|
|
744,868
|
|
|
11.5
|
|
|
531,481
|
|
|
11.6
|
|
|
419,611
|
|
|
10.5
|
|
|
334,964
|
|
|
10.5
|
|
|||||
Residential
(1)
|
1,082,248
|
|
|
13.7
|
|
|
931,495
|
|
|
14.3
|
|
|
644,340
|
|
|
14.1
|
|
|
620,289
|
|
|
15.5
|
|
|
518,478
|
|
|
16.2
|
|
|||||
Single family interim construction
|
331,748
|
|
|
4.2
|
|
|
289,680
|
|
|
4.4
|
|
|
235,475
|
|
|
5.1
|
|
|
187,984
|
|
|
4.7
|
|
|
138,278
|
|
|
4.3
|
|
|||||
Agricultural
|
66,638
|
|
|
0.8
|
|
|
82,583
|
|
|
1.3
|
|
|
53,548
|
|
|
1.2
|
|
|
50,178
|
|
|
1.3
|
|
|
38,822
|
|
|
1.2
|
|
|||||
Consumer
|
31,759
|
|
|
0.4
|
|
|
34,639
|
|
|
0.5
|
|
|
27,530
|
|
|
0.6
|
|
|
41,966
|
|
|
1.0
|
|
|
52,267
|
|
|
1.6
|
|
|||||
Other
|
253
|
|
|
—
|
|
|
304
|
|
|
—
|
|
|
166
|
|
|
—
|
|
|
124
|
|
|
—
|
|
|
242
|
|
|
—
|
|
|||||
|
7,920,527
|
|
|
100.0
|
%
|
|
6,513,445
|
|
|
100.0
|
%
|
|
4,582,566
|
|
|
100.0
|
%
|
|
4,001,704
|
|
|
100.0
|
%
|
|
3,205,537
|
|
|
100.0
|
%
|
|||||
Deferred loan fees
|
(3,303
|
)
|
|
|
|
(2,568
|
)
|
|
|
|
(2,117
|
)
|
|
|
|
(1,553
|
)
|
|
|
|
(487
|
)
|
|
|
||||||||||
Allowance for loan losses
|
(44,802
|
)
|
|
|
|
(39,402
|
)
|
|
|
|
(31,591
|
)
|
|
|
|
(27,043
|
)
|
|
|
|
(18,552
|
)
|
|
|
||||||||||
Total loans, net
|
$
|
7,872,422
|
|
|
|
|
$
|
6,471,475
|
|
|
|
|
$
|
4,548,858
|
|
|
|
|
$
|
3,973,108
|
|
|
|
|
$
|
3,186,498
|
|
|
|
As of December 31, 2018
|
Within One Year
|
One Year to Five Years
|
After Five Years
|
Total
|
||||||||||||||||||||
(dollars in thousands)
|
Fixed Rate
|
Adjustable Rate
|
Fixed Rate
|
Adjustable Rate
|
Fixed Rate
|
Adjustable Rate
|
Fixed Rate
|
Adjustable Rate
|
||||||||||||||||
Commercial
|
$
|
266,407
|
|
$
|
355,630
|
|
$
|
256,301
|
|
$
|
369,235
|
|
$
|
24,321
|
|
$
|
89,210
|
|
$
|
547,029
|
|
$
|
814,075
|
|
Real estate:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial real estate
|
241,992
|
|
100,548
|
|
1,690,168
|
|
513,855
|
|
196,713
|
|
1,398,080
|
|
2,128,873
|
|
2,012,483
|
|
||||||||
Commercial construction, land and land development
|
83,338
|
|
125,415
|
|
265,372
|
|
239,647
|
|
23,056
|
|
168,593
|
|
371,766
|
|
533,655
|
|
||||||||
Residential real estate
|
80,234
|
|
25,436
|
|
404,136
|
|
36,015
|
|
298,564
|
|
237,863
|
|
782,934
|
|
299,314
|
|
||||||||
Single family interim construction
|
92,079
|
|
160,554
|
|
16,014
|
|
11,306
|
|
41,803
|
|
9,992
|
|
149,896
|
|
181,852
|
|
||||||||
Agricultural
|
14,296
|
|
6,093
|
|
22,087
|
|
5,642
|
|
4,174
|
|
14,346
|
|
40,557
|
|
26,081
|
|
||||||||
Consumer
|
10,674
|
|
3,606
|
|
15,985
|
|
688
|
|
706
|
|
100
|
|
27,365
|
|
4,394
|
|
||||||||
Other
|
253
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
253
|
|
—
|
|
||||||||
Total loans
|
$
|
789,273
|
|
$
|
777,282
|
|
$
|
2,670,063
|
|
$
|
1,176,388
|
|
$
|
589,337
|
|
$
|
1,918,184
|
|
$
|
4,048,673
|
|
$
|
3,871,854
|
|
|
|
As of December 31,
|
||||||||||||||||||
(dollars in thousands)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Nonaccrual loans
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
$
|
5,224
|
|
|
$
|
10,304
|
|
|
$
|
7,718
|
|
|
$
|
7,366
|
|
|
$
|
1,449
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate, construction, land and land development
|
|
1,329
|
|
|
2,716
|
|
|
5,885
|
|
|
591
|
|
|
70
|
|
|||||
Residential real estate
|
|
1,775
|
|
|
998
|
|
|
866
|
|
|
552
|
|
|
2,117
|
|
|||||
Single-family interim construction
|
|
3,578
|
|
|
—
|
|
|
884
|
|
|
—
|
|
|
—
|
|
|||||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|
170
|
|
|
—
|
|
|||||
Consumer
|
|
32
|
|
|
55
|
|
|
273
|
|
|
111
|
|
|
67
|
|
|||||
Total nonaccrual loans
(1)
|
|
11,938
|
|
|
14,073
|
|
|
15,626
|
|
|
8,790
|
|
|
3,703
|
|
|||||
Loans delinquent 90 days or more and still accruing
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
157
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial real estate, construction, land and land development
|
|
—
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential real estate
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
288
|
|
|||||
Consumer
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Total loans delinquent 90 days or more and still accruing
|
|
5
|
|
|
136
|
|
|
—
|
|
|
—
|
|
|
451
|
|
|||||
Troubled debt restructurings, not included in nonaccrual loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
|
114
|
|
|
—
|
|
|
1
|
|
|
16
|
|
|
30
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate, construction, land and land development
|
|
405
|
|
|
455
|
|
|
1,204
|
|
|
3,480
|
|
|
4,668
|
|
|||||
Residential real estate
|
|
168
|
|
|
730
|
|
|
1,011
|
|
|
2,574
|
|
|
1,254
|
|
|||||
Consumer
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
Total troubled debt restructurings, not included in nonaccrual loans
|
|
687
|
|
|
1,205
|
|
|
2,216
|
|
|
6,070
|
|
|
5,960
|
|
|||||
Total nonperforming loans
|
|
12,630
|
|
|
15,414
|
|
|
17,842
|
|
|
14,860
|
|
|
10,114
|
|
|||||
Other real estate owned and other repossessed assets (Bank only):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,050
|
|
|
—
|
|
|||||
Commercial real estate, construction, land and land development
|
|
4,200
|
|
|
5,400
|
|
|
783
|
|
|
2,168
|
|
|
4,763
|
|
|||||
Residential real estate
|
|
—
|
|
|
764
|
|
|
1,189
|
|
|
—
|
|
|
—
|
|
|||||
Single-family interim construction
|
|
—
|
|
|
963
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
|
114
|
|
|
114
|
|
|
4
|
|
|
14
|
|
|
—
|
|
|||||
Total other real estate owned and other repossessed assets
|
|
4,314
|
|
|
7,241
|
|
|
1,976
|
|
|
3,232
|
|
|
4,763
|
|
|||||
Total nonperforming assets
|
|
$
|
16,944
|
|
|
$
|
22,655
|
|
|
$
|
19,818
|
|
|
$
|
18,092
|
|
|
$
|
14,877
|
|
Ratio of nonperforming loans to total loans
(2)
|
|
0.16
|
%
|
|
0.24
|
%
|
|
0.39
|
%
|
|
0.37
|
%
|
|
0.32
|
%
|
|||||
Ratio of nonperforming assets to total assets
|
|
0.17
|
|
|
0.26
|
|
|
0.34
|
|
|
0.36
|
|
|
0.36
|
|
|
|
|
As of December 31,
|
||||||||||||||||||||||
|
2018
|
2017
|
2016
|
2015
|
2014
|
||||||||||||||||||||
(dollars in thousands)
|
Amount
|
% of
Total Loans (1) |
Amount
|
% of
Total Loans (1) |
Amount
|
% of
Total Loans (1) |
Amount
|
% of
Total Loans (1) |
Amount
|
% of
Total Loans (1) |
|||||||||||||||
Commercial loans
|
$
|
11,793
|
|
17.2
|
%
|
$
|
10,599
|
|
16.3
|
%
|
$
|
8,593
|
|
13.7
|
%
|
$
|
10,573
|
|
18.3
|
%
|
$
|
5,051
|
|
21.0
|
%
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial real estate, construction, land and land development
|
27,795
|
|
63.7
|
|
23,301
|
|
63.2
|
|
18,399
|
|
65.3
|
|
13,007
|
|
59.2
|
|
10,110
|
|
55.7
|
|
|||||
Residential real estate
|
3,320
|
|
13.7
|
|
3,447
|
|
14.3
|
|
2,760
|
|
14.1
|
|
2,339
|
|
15.5
|
|
2,205
|
|
16.2
|
|
|||||
Single family interim construction
|
1,402
|
|
4.2
|
|
1,583
|
|
4.4
|
|
1,301
|
|
5.1
|
|
769
|
|
4.7
|
|
669
|
|
4.3
|
|
|||||
Agricultural
|
241
|
|
0.8
|
|
250
|
|
1.3
|
|
207
|
|
1.2
|
|
215
|
|
1.3
|
|
246
|
|
1.2
|
|
|||||
Consumer
|
186
|
|
0.4
|
|
205
|
|
0.5
|
|
242
|
|
0.6
|
|
164
|
|
1.0
|
|
146
|
|
1.6
|
|
|||||
Other
|
3
|
|
—
|
|
(32
|
)
|
—
|
|
29
|
|
—
|
|
8
|
|
—
|
|
—
|
|
—
|
|
|||||
Unallocated
|
62
|
|
—
|
|
49
|
|
—
|
|
60
|
|
—
|
|
(32
|
)
|
—
|
|
125
|
|
—
|
|
|||||
Total allowance for loan losses
|
$
|
44,802
|
|
100.0
|
%
|
$
|
39,402
|
|
100.0
|
%
|
$
|
31,591
|
|
100.0
|
%
|
$
|
27,043
|
|
100.0
|
%
|
$
|
18,552
|
|
100.0
|
%
|
|
As of and for the Year Ended December 31,
|
||||||||||||||
(dollars in thousands)
|
2018
|
2017
|
2016
|
2015
|
2014
|
||||||||||
Allowance for loan losses-balance at beginning of year
|
$
|
39,402
|
|
$
|
31,591
|
|
$
|
27,043
|
|
$
|
18,552
|
|
$
|
13,960
|
|
Charge-offs
|
|
|
|
|
|
||||||||||
Commercial
|
(3,863
|
)
|
(81
|
)
|
(4,384
|
)
|
(606
|
)
|
(368
|
)
|
|||||
Real estate:
|
|
|
|
|
|
||||||||||
Commercial real estate, construction, land and land development
|
(435
|
)
|
(15
|
)
|
(54
|
)
|
(69
|
)
|
(371
|
)
|
|||||
Residential real estate
|
(6
|
)
|
—
|
|
(401
|
)
|
(9
|
)
|
(32
|
)
|
|||||
Single-family interim construction
|
—
|
|
(134
|
)
|
—
|
|
—
|
|
—
|
|
|||||
Consumer
|
(93
|
)
|
(182
|
)
|
(27
|
)
|
(52
|
)
|
(63
|
)
|
|||||
Other
|
(228
|
)
|
(190
|
)
|
(104
|
)
|
(124
|
)
|
(80
|
)
|
|||||
Total charge-offs
|
(4,625
|
)
|
(602
|
)
|
(4,970
|
)
|
(860
|
)
|
(914
|
)
|
|||||
|
|
|
|
|
|
||||||||||
Recoveries
|
|
|
|
|
|
||||||||||
Commercial
|
84
|
|
28
|
|
13
|
|
28
|
|
19
|
|
|||||
Real estate:
|
|
|
|
|
|
||||||||||
Commercial real estate, construction, land and land development
|
20
|
|
31
|
|
10
|
|
42
|
|
79
|
|
|||||
Residential real estate
|
3
|
|
4
|
|
12
|
|
5
|
|
8
|
|
|||||
Single-family interim construction
|
—
|
|
—
|
|
—
|
|
—
|
|
11
|
|
|||||
Consumer
|
5
|
|
46
|
|
8
|
|
14
|
|
6
|
|
|||||
Other
|
53
|
|
39
|
|
35
|
|
31
|
|
24
|
|
|||||
Total recoveries
|
165
|
|
148
|
|
78
|
|
120
|
|
147
|
|
|||||
Net charge-offs
|
(4,460
|
)
|
(454
|
)
|
(4,892
|
)
|
(740
|
)
|
(767
|
)
|
|||||
Provision for loan losses
|
9,860
|
|
8,265
|
|
9,440
|
|
9,231
|
|
5,359
|
|
|||||
Allowance for loan losses-balance at end of year
|
$
|
44,802
|
|
$
|
39,402
|
|
$
|
31,591
|
|
$
|
27,043
|
|
$
|
18,552
|
|
Ratios
|
|
|
|
|
|
||||||||||
Net charge-offs to average loans outstanding
|
0.06
|
%
|
0.01
|
%
|
0.12
|
%
|
0.02
|
%
|
0.03
|
%
|
|||||
Allowance for loan losses to nonperforming loans at end of year
|
354.73
|
|
255.62
|
|
177.06
|
|
181.99
|
|
183.43
|
|
|||||
Allowance for loan losses to total loans at end of year
(1)
|
0.58
|
|
0.62
|
|
0.69
|
|
0.68
|
|
0.58
|
|
|
As of December 31,
|
||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||
(dollars in thousands)
|
Book Value
|
% of Total
|
|
Book Value
|
% of Total
|
|
Book Value
|
% of Total
|
|||||||||
Securities available
for sale
|
|
|
|
|
|
|
|
|
|||||||||
U.S. Treasury securities
|
$
|
29,643
|
|
4.3
|
%
|
|
$
|
37,154
|
|
4.9
|
%
|
|
$
|
3,147
|
|
1.0
|
%
|
Government agency securities
|
150,230
|
|
21.9
|
|
|
211,509
|
|
27.7
|
|
|
122,267
|
|
38.6
|
|
|||
Obligations of state and municipal subdivisions
|
185,007
|
|
27.0
|
|
|
229,613
|
|
30.1
|
|
|
87,256
|
|
27.6
|
|
|||
Residential pass-through securities
|
320,470
|
|
46.8
|
|
|
274,377
|
|
35.9
|
|
|
103,765
|
|
32.8
|
|
|||
Other securities
|
—
|
|
—
|
|
|
10,349
|
|
1.4
|
|
|
—
|
|
—
|
|
|||
Total securities available for sale
|
$
|
685,350
|
|
100.0
|
%
|
|
$
|
763,002
|
|
100.0
|
%
|
|
$
|
316,435
|
|
100.0
|
%
|
(dollars in thousands)
|
Book Value
|
% of Total Investment Securities
|
Weighted Average Yield
|
||||
U.S. Treasury securities
|
|
|
|
||||
Maturing within one year
|
$
|
1,981
|
|
0.3
|
%
|
1.47
|
%
|
Maturing in one to five years
|
27,661
|
|
4.0
|
|
2.02
|
|
|
Maturing in five to ten years
|
—
|
|
—
|
|
—
|
|
|
Maturing after ten years
|
—
|
|
—
|
|
—
|
|
|
Total U.S. Treasury securities
|
29,642
|
|
4.3
|
|
1.98
|
|
|
|
|
|
|
||||
Government agency securities
|
|
|
|
||||
Maturing within one year
|
$
|
28,313
|
|
4.1
|
%
|
1.57
|
|
Maturing in one to five years
|
87,010
|
|
12.7
|
|
1.89
|
|
|
Maturing in five to ten years
|
34,908
|
|
5.1
|
|
2.84
|
|
|
Maturing after ten years
|
—
|
|
—
|
|
—
|
|
|
Total government agency securities
|
150,231
|
|
21.9
|
|
2.05
|
|
|
|
|
|
|
||||
Obligations of state and municipal subdivisions
|
|
|
|
||||
Maturing within one year
|
10,081
|
|
1.5
|
|
1.65
|
|
|
Maturing in one to five years
|
39,467
|
|
5.8
|
|
2.25
|
|
|
Maturing in five to ten years
|
46,291
|
|
6.8
|
|
2.47
|
|
|
Maturing after ten years
|
89,168
|
|
13.0
|
|
2.97
|
|
|
Total obligations of state and municipal subdivisions
|
185,007
|
|
27.1
|
|
2.62
|
|
|
|
|
|
|
||||
Residential pass through securities
|
|
|
|
||||
Maturing within one year
|
4,376
|
|
0.6
|
|
1.95
|
|
|
Maturing in one to five years
|
—
|
|
—
|
|
—
|
|
|
Maturing in five to ten years
|
96,265
|
|
14.0
|
|
3.56
|
|
|
Maturing after ten years
|
219,829
|
|
32.1
|
|
3.02
|
|
|
Total residential pass through securities
|
320,470
|
|
46.7
|
|
2.86
|
|
|
Total investment securities
|
$
|
685,350
|
|
100.0
|
%
|
2.58
|
%
|
(dollars in thousands)
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
Securities available for sale
|
|
|
|
|
|
|
|
||||||||
As of December 31, 2018
|
|
|
|
|
|
|
|
||||||||
U.S. treasuries
|
$
|
30,110
|
|
|
$
|
—
|
|
|
$
|
(467
|
)
|
|
$
|
29,643
|
|
Government agency securities
|
152,969
|
|
|
80
|
|
|
(2,819
|
)
|
|
150,230
|
|
||||
Obligations of state and municipal subdivisions
|
187,366
|
|
|
727
|
|
|
(3,086
|
)
|
|
185,007
|
|
||||
Residential pass through securities guaranteed by FNMA, GNMA, and FHLMC
|
326,168
|
|
|
128
|
|
|
(5,826
|
)
|
|
320,470
|
|
||||
|
$
|
696,613
|
|
|
$
|
935
|
|
|
$
|
(12,198
|
)
|
|
$
|
685,350
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
||||||||
U.S. treasuries
|
$
|
37,480
|
|
|
$
|
—
|
|
|
$
|
(326
|
)
|
|
$
|
37,154
|
|
Government agency securities
|
213,649
|
|
|
83
|
|
|
(2,223
|
)
|
|
211,509
|
|
||||
Obligations of state and municipal subdivisions
|
228,782
|
|
|
2,118
|
|
|
(1,287
|
)
|
|
229,613
|
|
||||
Residential pass through securities guaranteed by FNMA, GNMA, FHLMC, FHR and GNR
|
274,356
|
|
|
1,229
|
|
|
(1,208
|
)
|
|
274,377
|
|
||||
Other securities
|
10,397
|
|
|
—
|
|
|
(48
|
)
|
|
10,349
|
|
||||
|
$
|
764,664
|
|
|
$
|
3,430
|
|
|
$
|
(5,092
|
)
|
|
$
|
763,002
|
|
As of December 31, 2016
|
|
|
|
|
|
|
|
||||||||
U.S. treasuries
|
$
|
3,208
|
|
|
$
|
—
|
|
|
$
|
(61
|
)
|
|
$
|
3,147
|
|
Government agency securities
|
123,605
|
|
|
141
|
|
|
(1,479
|
)
|
|
122,267
|
|
||||
Obligations of state and municipal subdivisions
|
88,358
|
|
|
920
|
|
|
(2,022
|
)
|
|
87,256
|
|
||||
Residential pass through securities guaranteed by FNMA, GNMA and FHLMC
|
103,869
|
|
|
928
|
|
|
(1,032
|
)
|
|
103,765
|
|
||||
|
$
|
319,040
|
|
|
$
|
1,989
|
|
|
$
|
(4,594
|
)
|
|
$
|
316,435
|
|
|
As of December 31,
|
||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||
(dollars in thousands)
|
Balance
|
Weighted Average Rate
|
|
Balance
|
Weighted Average Rate
|
|
Balance
|
Weighted Average Rate
|
|||||||||
Deposit Type
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest-bearing demand accounts
|
$
|
2,052,675
|
|
—
|
%
|
|
$
|
1,671,872
|
|
—
|
%
|
|
$
|
1,076,340
|
|
—
|
%
|
Interest-bearing checking accounts
|
2,943,519
|
|
0.90
|
|
|
2,630,477
|
|
0.51
|
|
|
1,761,509
|
|
0.44
|
|
|||
Savings accounts
|
290,325
|
|
0.24
|
|
|
263,381
|
|
0.14
|
|
|
150,223
|
|
0.17
|
|
|||
Limited access money market accounts
|
998,916
|
|
1.91
|
|
|
605,064
|
|
1.02
|
|
|
429,647
|
|
0.44
|
|
|||
Certificates of deposit, including individual retirement accounts (IRA)
|
1,009,644
|
|
1.43
|
|
|
1,002,753
|
|
0.86
|
|
|
830,964
|
|
0.74
|
|
|||
Total deposits
|
$
|
7,295,079
|
|
0.83
|
%
|
|
$
|
6,173,547
|
|
0.46
|
%
|
|
$
|
4,248,683
|
|
0.38
|
%
|
|
Maturity within:
|
||||||||||||||
(dollars in thousands)
|
Three Months
|
Three to Six Months
|
Six to Twelve Months
|
After Twelve Months
|
Total
|
||||||||||
Individual retirement accounts
|
$
|
1,822
|
|
$
|
4,505
|
|
$
|
7,039
|
|
$
|
7,188
|
|
$
|
20,554
|
|
Certificates of deposit (excluding CDARS)
|
93,022
|
|
142,100
|
|
450,960
|
|
155,244
|
|
841,326
|
|
|||||
CDARS
|
28,899
|
|
4,443
|
|
9,740
|
|
473
|
|
43,555
|
|
|||||
Total
|
$
|
123,743
|
|
$
|
151,048
|
|
$
|
467,739
|
|
$
|
162,905
|
|
$
|
905,435
|
|
|
As of December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Fixed-rate, fixed term, at rates from 1.02% to 2.59%, with a weighted-average of 2.17% (maturing January 2019 through July 2021)
|
$
|
290,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fixed-rate, fixed term, at rates from 1.02% to 5.57%, with a weighted-average of 1.43% (maturing January 2018 through January 2026)
|
—
|
|
|
530,667
|
|
|
—
|
|
|||
Fixed-rate, fixed term, at rates from 0.46% to 5.57%, with a weighted-average of 0.98% (maturing October 2017 through January 2026
|
—
|
|
|
—
|
|
|
460,746
|
|
Maturing Within
|
|
Principal Amount to Mature
|
||
|
As of
December 31, 2018
|
|||
First Year
|
|
$
|
115,000
|
|
Second Year
|
|
150,000
|
|
|
Third Year
|
|
25,000
|
|
|
Fourth Year
|
|
—
|
|
|
Fifth Year
|
|
—
|
|
|
Thereafter
|
|
—
|
|
|
|
|
$
|
290,000
|
|
|
As of December 31, 2018
|
|||
|
Actual
Consolidated
|
Actual
Bank |
Required to be considered adequately capitalized
|
Required to be considered well capitalized (Bank only)
|
|
Ratio
|
Ratio
|
Ratio
|
Ratio
|
Tier 1 capital to average assets ratio
|
9.57%
|
10.91%
|
4.00-5.00%
|
≥5.00%
|
Common equity tier 1 to risk-weighted assets ratio
|
10.05
|
11.86
|
4.50-6.50
|
≥6.50
|
Tier 1 capital to risk-weighted assets ratio
|
10.41
|
11.86
|
6.00-8.00
|
≥8.00
|
Total capital to risk-weighted assets ratio
|
12.58
|
12.39
|
8.00-10.00
|
≥10.00
|
|
As of December 31, 2017
|
|||
|
Actual
Consolidated |
Actual
Bank |
Required to be considered adequately capitalized
|
Required to be considered well capitalized (Bank only)
|
|
Ratio
|
Ratio
|
Ratio
|
Ratio
|
Tier 1 capital to average assets ratio
|
8.92%
|
10.30%
|
4.00-5.00%
|
≥5.00%
|
Common equity tier 1 to risk-weighted assets ratio
|
9.61
|
11.59
|
4.50-6.50
|
≥6.50
|
Tier 1 capital to risk-weighted assets ratio
|
10.05
|
11.59
|
6.00-8.00
|
≥8.00
|
Total capital to risk-weighted assets ratio
|
12.56
|
12.15
|
8.00-10.00
|
≥10.00
|
|
As of December 31, 2016
|
|||
|
Actual
Consolidated |
Actual
Bank |
Required to be considered adequately capitalized
|
Required to be considered well capitalized (Bank only)
|
|
Ratio
|
Ratio
|
Ratio
|
Ratio
|
Tier 1 capital to average assets ratio
|
7.82%
|
9.65%
|
4.00-5.00%
|
≥5.00%
|
Common equity tier 1 to risk-weighted assets ratio
|
8.20
|
10.55
|
4.50-6.50
|
≥6.50
|
Tier 1 capital to risk-weighted assets ratio
|
8.55
|
10.55
|
6.00-8.00
|
≥8.00
|
Total capital to risk-weighted assets ratio
|
11.38
|
11.19
|
8.00-10.00
|
≥10.00
|
(dollars in thousands)
|
Payments Due
|
||||||||||||||
Within One Year
|
One to Three Years
|
Three to Five Years
|
After Five Years
|
Total
|
|||||||||||
Deposits without a stated maturity
|
$
|
6,617,491
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
6,617,491
|
|
Time deposits
|
913,746
|
|
179,970
|
|
26,587
|
|
—
|
|
1,120,303
|
|
|||||
FHLB advances
|
115,000
|
|
175,000
|
|
—
|
|
—
|
|
290,000
|
|
|||||
Subordinated debt
|
—
|
|
—
|
|
—
|
|
140,000
|
|
140,000
|
|
|||||
Junior subordinated debentures
|
—
|
|
—
|
|
—
|
|
31,550
|
|
31,550
|
|
|||||
Operating leases
|
3,968
|
|
7,551
|
|
5,723
|
|
7,863
|
|
25,105
|
|
|||||
Total contractual obligations
|
$
|
7,650,205
|
|
$
|
362,521
|
|
$
|
32,310
|
|
$
|
179,413
|
|
$
|
8,224,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit Number
|
Description
|
3.1
|
|
3.2
|
|
3.3
|
|
3.4
|
|
3.5
|
|
3.6
|
|
3.7
|
|
3.8
|
|
3.9
|
|
3.10
|
|
4.1
|
|
4.2
|
|
4.3
|
|
4.4
|
|
|
The other instruments defining the rights of holders of the long‑term debt securities of the Company and its subsidiaries are omitted pursuant to section (b)(4)(iii)(A) of Item 601 of Regulation S‑K. The Company hereby agrees to furnish copies of these instruments to the SEC upon request
|
|
|
10.1
|
|
10.2
|
|
10.3
|
|
10.4
|
10.5
|
|
10.6
|
|
10.7
|
|
10.8
|
|
10.9
|
|
10.10(a)
|
|
10.10(b)
|
|
10.10(c)
|
|
10.11
|
|
10.12(a)
|
|
10.12(b)
|
|
10.13(a)
|
|
10.13(b)
|
|
10.13(c)
|
|
10.14
|
|
10.15
|
|
10.16
|
|
21.1
|
|
23.1
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
101.INS
|
XBRL Instance Document*
|
101.SCH
|
XBRL Taxonomy Extension Schema Document*
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document*
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document*
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document*
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document*
|
|
December 31,
|
||||||
Assets
|
2018
|
|
2017
|
||||
Cash and due from banks
|
$
|
102,024
|
|
|
$
|
187,574
|
|
Interest-bearing deposits in other banks
|
28,755
|
|
|
243,528
|
|
||
Cash and cash equivalents
|
130,779
|
|
|
431,102
|
|
||
Certificates of deposit held in other banks
|
1,225
|
|
|
12,985
|
|
||
Securities available for sale, at fair value
|
685,350
|
|
|
763,002
|
|
||
Loans held for sale (includes $27,871 carried at fair value at December 31, 2018)
|
32,727
|
|
|
39,202
|
|
||
Loans, net
|
7,839,695
|
|
|
6,432,273
|
|
||
Premises and equipment, net
|
167,866
|
|
|
147,835
|
|
||
Other real estate owned
|
4,200
|
|
|
7,126
|
|
||
Federal Home Loan Bank (FHLB) of Dallas stock and other restricted stock
|
26,870
|
|
|
29,184
|
|
||
Bank-owned life insurance (BOLI)
|
129,521
|
|
|
113,170
|
|
||
Deferred tax asset
|
13,180
|
|
|
9,763
|
|
||
Goodwill
|
721,797
|
|
|
621,458
|
|
||
Core deposit intangible, net
|
45,042
|
|
|
43,244
|
|
||
Other assets
|
51,713
|
|
|
34,119
|
|
||
Total assets
|
$
|
9,849,965
|
|
|
$
|
8,684,463
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing
|
$
|
2,145,930
|
|
|
$
|
1,907,770
|
|
Interest-bearing
|
5,591,864
|
|
|
4,725,052
|
|
||
Total deposits
|
7,737,794
|
|
|
6,632,822
|
|
||
FHLB advances
|
290,000
|
|
|
530,667
|
|
||
Other borrowings
|
137,316
|
|
|
136,911
|
|
||
Junior subordinated debentures
|
27,852
|
|
|
27,654
|
|
||
Other liabilities
|
50,570
|
|
|
20,391
|
|
||
Total liabilities
|
8,243,532
|
|
|
7,348,445
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock (0 and 0 shares outstanding, respectively)
|
—
|
|
|
—
|
|
||
Common stock (30,600,582 and 28,254,893 shares outstanding, respectively)
|
306
|
|
|
283
|
|
||
Additional paid-in capital
|
1,317,616
|
|
|
1,151,990
|
|
||
Retained earnings
|
296,816
|
|
|
184,232
|
|
||
Accumulated other comprehensive loss
|
(8,305
|
)
|
|
(487
|
)
|
||
Total stockholders’ equity
|
1,606,433
|
|
|
1,336,018
|
|
||
Total liabilities and stockholders’ equity
|
$
|
9,849,965
|
|
|
$
|
8,684,463
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Interest income:
|
|
|
|
|
|
|
||||||
Interest and fees on loans
|
|
$
|
384,791
|
|
|
$
|
290,357
|
|
|
$
|
203,577
|
|
Interest on taxable securities
|
|
14,007
|
|
|
8,229
|
|
|
2,681
|
|
|||
Interest on nontaxable securities
|
|
4,580
|
|
|
3,877
|
|
|
1,768
|
|
|||
Interest on interest-bearing deposits and other
|
|
3,912
|
|
|
5,451
|
|
|
2,023
|
|
|||
Total interest income
|
|
407,290
|
|
|
307,914
|
|
|
210,049
|
|
|||
Interest expense:
|
|
|
|
|
|
|
||||||
Interest on deposits
|
|
60,767
|
|
|
28,518
|
|
|
16,075
|
|
|||
Interest on FHLB advances
|
|
10,264
|
|
|
5,858
|
|
|
4,119
|
|
|||
Interest on other borrowings and repurchase agreements
|
|
8,398
|
|
|
6,898
|
|
|
5,428
|
|
|||
Interest on junior subordinated debentures
|
|
1,609
|
|
|
1,162
|
|
|
621
|
|
|||
Total interest expense
|
|
81,038
|
|
|
42,436
|
|
|
26,243
|
|
|||
Net interest income
|
|
326,252
|
|
|
265,478
|
|
|
183,806
|
|
|||
Provision for loan losses
|
|
9,860
|
|
|
8,265
|
|
|
9,440
|
|
|||
Net interest income after provision for loan losses
|
|
316,392
|
|
|
257,213
|
|
|
174,366
|
|
|||
Noninterest income:
|
|
|
|
|
|
|
||||||
Service charges on deposit accounts
|
|
14,224
|
|
|
12,955
|
|
|
7,222
|
|
|||
Mortgage banking revenue
|
|
15,512
|
|
|
13,755
|
|
|
7,038
|
|
|||
Gain on sale of loans
|
|
—
|
|
|
351
|
|
|
—
|
|
|||
Gain (loss) on sale of branches
|
|
—
|
|
|
2,917
|
|
|
(43
|
)
|
|||
Gain (loss) on sale of other real estate
|
|
269
|
|
|
(160
|
)
|
|
57
|
|
|||
Gain on sale of repossessed assets
|
|
—
|
|
|
1,010
|
|
|
—
|
|
|||
(Loss) gain on sale of securities available for sale
|
|
(581
|
)
|
|
124
|
|
|
4
|
|
|||
Gain (loss) on sale of premises and equipment
|
|
123
|
|
|
(21
|
)
|
|
32
|
|
|||
Increase in cash surrender value of BOLI
|
|
3,170
|
|
|
2,748
|
|
|
1,348
|
|
|||
Other
|
|
9,507
|
|
|
7,608
|
|
|
3,897
|
|
|||
Total noninterest income
|
|
42,224
|
|
|
41,287
|
|
|
19,555
|
|
|||
Noninterest expense:
|
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
|
111,697
|
|
|
95,741
|
|
|
66,762
|
|
|||
Occupancy
|
|
24,786
|
|
|
22,079
|
|
|
16,101
|
|
|||
Data processing
|
|
10,754
|
|
|
8,597
|
|
|
4,752
|
|
|||
FDIC assessment
|
|
3,306
|
|
|
4,311
|
|
|
3,889
|
|
|||
Advertising and public relations
|
|
1,907
|
|
|
1,452
|
|
|
1,107
|
|
|||
Communications
|
|
3,353
|
|
|
2,860
|
|
|
2,116
|
|
|||
Other real estate owned expenses, net
|
|
318
|
|
|
304
|
|
|
205
|
|
|||
Impairment of other real estate
|
|
85
|
|
|
1,412
|
|
|
106
|
|
|||
Core deposit intangible amortization
|
|
5,739
|
|
|
4,639
|
|
|
1,964
|
|
|||
Professional fees
|
|
4,556
|
|
|
4,564
|
|
|
3,212
|
|
|||
Acquisition expense, including legal
|
|
6,157
|
|
|
12,898
|
|
|
1,517
|
|
|||
Other
|
|
25,961
|
|
|
17,956
|
|
|
12,059
|
|
|||
Total noninterest expense
|
|
198,619
|
|
|
176,813
|
|
|
113,790
|
|
|||
Income before taxes
|
|
159,997
|
|
|
121,687
|
|
|
80,131
|
|
|||
Income tax expense
|
|
31,738
|
|
|
45,175
|
|
|
26,591
|
|
|||
Net income
|
|
$
|
128,259
|
|
|
$
|
76,512
|
|
|
$
|
53,540
|
|
Basic earnings per share
|
|
$
|
4.33
|
|
|
$
|
2.98
|
|
|
$
|
2.89
|
|
Diluted earnings per share
|
|
$
|
4.33
|
|
|
$
|
2.97
|
|
|
$
|
2.88
|
|
|
Years ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
$
|
128,259
|
|
|
$
|
76,512
|
|
|
$
|
53,540
|
|
Other comprehensive income (loss) before tax:
|
|
|
|
|
|
||||||
Change in net unrealized gains (losses) on available for sale securities during the year
|
(10,182
|
)
|
|
1,067
|
|
|
(5,353
|
)
|
|||
Reclassification for amount realized through sales of securities
available for sale included in net income
|
581
|
|
|
(124
|
)
|
|
(4
|
)
|
|||
Other comprehensive income (loss) before tax
|
(9,601
|
)
|
|
943
|
|
|
(5,357
|
)
|
|||
Income tax expense (benefit)
|
(2,016
|
)
|
|
330
|
|
|
(1,875
|
)
|
|||
Other comprehensive income (loss), net of tax
|
(7,585
|
)
|
|
613
|
|
|
(3,482
|
)
|
|||
Comprehensive income
|
$
|
120,674
|
|
|
$
|
77,125
|
|
|
$
|
50,058
|
|
|
Preferred Stock $.01 Par Value 10 million shares authorized
|
|
Common Stock
$.01 Par Value
100 million shares authorized
|
|
Additional
Paid in Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
|
|||||||||||||||
|
|
Shares
|
|
Amount
|
|
|||||||||||||||||||||
Balance, December 31, 2015
|
$
|
—
|
|
|
18,399,194
|
|
|
$
|
184
|
|
|
$
|
530,107
|
|
|
$
|
70,698
|
|
|
$
|
2,382
|
|
|
$
|
603,371
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53,540
|
|
|
—
|
|
|
53,540
|
|
||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,482
|
)
|
|
(3,482
|
)
|
||||||
Common stock issued, net of offering costs of $1,071
|
—
|
|
|
400,000
|
|
|
4
|
|
|
19,925
|
|
|
—
|
|
|
—
|
|
|
19,929
|
|
||||||
Restricted stock forfeited
|
—
|
|
|
(25,102
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Restricted stock granted
|
—
|
|
|
96,220
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Income tax deficiency on restricted stock vested
|
—
|
|
|
—
|
|
|
—
|
|
|
(137
|
)
|
|
—
|
|
|
—
|
|
|
(137
|
)
|
||||||
Stock based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
5,431
|
|
|
—
|
|
|
—
|
|
|
5,431
|
|
||||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
||||||
Cash dividends ($0.34 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,279
|
)
|
|
—
|
|
|
(6,279
|
)
|
||||||
Balance, December 31, 2016
|
$
|
—
|
|
|
18,870,312
|
|
|
$
|
189
|
|
|
$
|
555,325
|
|
|
$
|
117,951
|
|
|
$
|
(1,100
|
)
|
|
$
|
672,365
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76,512
|
|
|
—
|
|
|
76,512
|
|
||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
613
|
|
|
613
|
|
||||||
Stock issued for acquisition of bank, net of offering costs of $942
|
—
|
|
|
8,804,699
|
|
|
88
|
|
|
565,112
|
|
|
—
|
|
|
—
|
|
|
565,200
|
|
||||||
Common stock issued, net of offering costs of $525
|
—
|
|
|
448,500
|
|
|
5
|
|
|
26,811
|
|
|
—
|
|
|
—
|
|
|
26,816
|
|
||||||
Restricted stock forfeited
|
—
|
|
|
(2,543
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Restricted stock granted
|
—
|
|
|
130,722
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
4,688
|
|
|
—
|
|
|
—
|
|
|
4,688
|
|
||||||
Exercise of warrants
|
—
|
|
|
3,203
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
55
|
|
||||||
Cash dividends ($0.40 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,231
|
)
|
|
—
|
|
|
(10,231
|
)
|
||||||
Balance, December 31, 2017
|
$
|
—
|
|
|
28,254,893
|
|
|
$
|
283
|
|
|
$
|
1,151,990
|
|
|
$
|
184,232
|
|
|
$
|
(487
|
)
|
|
$
|
1,336,018
|
|
Cumulative effect of change in accounting principle
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
233
|
|
|
(233
|
)
|
|
—
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
128,259
|
|
|
—
|
|
|
128,259
|
|
||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,585
|
)
|
|
(7,585
|
)
|
||||||
Stock issued for acquisition of bank, net of offering costs of $209
|
—
|
|
|
2,071,981
|
|
|
21
|
|
|
157,033
|
|
|
—
|
|
|
—
|
|
|
157,054
|
|
||||||
Restricted stock forfeited
|
—
|
|
|
(3,845
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Restricted stock granted
|
—
|
|
|
130,212
|
|
|
1
|
|
|
(1
|
)
|
|
|
|
—
|
|
|
—
|
|
|||||||
Stock based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
6,062
|
|
|
—
|
|
|
—
|
|
|
6,062
|
|
||||||
Exercise of warrants
|
—
|
|
|
147,341
|
|
|
1
|
|
|
2,532
|
|
|
—
|
|
|
—
|
|
|
2,533
|
|
||||||
Cash dividends ($0.54 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,908
|
)
|
|
—
|
|
|
(15,908
|
)
|
||||||
Balance, December 31, 2018
|
$
|
—
|
|
|
30,600,582
|
|
|
$
|
306
|
|
|
$
|
1,317,616
|
|
|
$
|
296,816
|
|
|
$
|
(8,305
|
)
|
|
$
|
1,606,433
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
128,259
|
|
|
$
|
76,512
|
|
|
$
|
53,540
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Depreciation expense
|
|
8,391
|
|
|
8,196
|
|
|
6,763
|
|
|||
Accretion of income recognized on acquired loans
|
|
(13,523
|
)
|
|
(7,833
|
)
|
|
(4,482
|
)
|
|||
Amortization of core deposit intangibles
|
|
5,739
|
|
|
4,639
|
|
|
1,964
|
|
|||
Amortization of premium on securities, net
|
|
3,316
|
|
|
3,629
|
|
|
2,230
|
|
|||
Amortization of discount and origination costs on borrowings
|
|
633
|
|
|
505
|
|
|
241
|
|
|||
Stock based compensation expense
|
|
6,062
|
|
|
4,688
|
|
|
5,431
|
|
|||
Excess tax benefit on restricted stock vested
|
|
(646
|
)
|
|
(1,323
|
)
|
|
—
|
|
|||
FHLB stock dividends
|
|
(791
|
)
|
|
(448
|
)
|
|
(261
|
)
|
|||
(Gain) loss on sale of premises and equipment
|
|
(123
|
)
|
|
21
|
|
|
(32
|
)
|
|||
Gain on sale of loans
|
|
—
|
|
|
(351
|
)
|
|
—
|
|
|||
Gain (loss) on sale of branches
|
|
—
|
|
|
(2,917
|
)
|
|
43
|
|
|||
Loss (gain) on sale of securities available for sale
|
|
581
|
|
|
(124
|
)
|
|
(4
|
)
|
|||
(Gain) loss on sale of other real estate owned
|
|
(269
|
)
|
|
160
|
|
|
(57
|
)
|
|||
Gain recognized on sale of repossessed assets
|
|
—
|
|
|
(1,010
|
)
|
|
—
|
|
|||
Impairment of other real estate
|
|
85
|
|
|
1,412
|
|
|
106
|
|
|||
Deferred tax expense (benefit)
|
|
1,937
|
|
|
17,054
|
|
|
(1,849
|
)
|
|||
Provision for loan losses
|
|
9,860
|
|
|
8,265
|
|
|
9,440
|
|
|||
Increase in cash surrender value of BOLI
|
|
(3,170
|
)
|
|
(2,748
|
)
|
|
(1,348
|
)
|
|||
Net gain on loans held for sale
|
|
(13,794
|
)
|
|
(9,160
|
)
|
|
—
|
|
|||
Originations of loans held for sale
|
|
(384,178
|
)
|
|
(429,874
|
)
|
|
(276,679
|
)
|
|||
Proceeds from sale of loans held for sale
|
|
404,447
|
|
|
422,409
|
|
|
279,183
|
|
|||
Net change in other assets
|
|
(14,352
|
)
|
|
(5,987
|
)
|
|
(978
|
)
|
|||
Net change in other liabilities
|
|
20,277
|
|
|
(2,920
|
)
|
|
7,026
|
|
|||
Net cash provided by operating activities
|
|
158,741
|
|
|
82,795
|
|
|
80,277
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|||||
Proceeds from maturities, calls and pay downs of securities available for sale
|
|
3,660,624
|
|
|
2,328,843
|
|
|
1,569,462
|
|
|||
Proceeds from sale of securities available for sale
|
|
102,647
|
|
|
31,367
|
|
|
5,399
|
|
|||
Purchases of securities available for sale
|
|
(3,674,396
|
)
|
|
(2,472,799
|
)
|
|
(1,625,416
|
)
|
|||
Purchases of certificates of deposit held in other banks
|
|
—
|
|
|
—
|
|
|
(2,707
|
)
|
|||
Proceeds from maturities of certificates of deposit held in other banks
|
|
11,760
|
|
|
747
|
|
|
61,746
|
|
|||
Purchase of bank owned life insurance contracts
|
|
(5,000
|
)
|
|
—
|
|
|
(15,000
|
)
|
|||
Purchases of FHLB stock and other restricted stock
|
|
(6,144
|
)
|
|
(48
|
)
|
|
(12,019
|
)
|
|||
Proceeds from redemptions of FHLB stock and other restricted stock
|
|
12,606
|
|
|
8,958
|
|
|
—
|
|
|||
Proceeds from sale of loans
|
|
—
|
|
|
3,867
|
|
|
—
|
|
|||
Net loans originated held for investment
|
|
(746,804
|
)
|
|
(566,881
|
)
|
|
(584,316
|
)
|
|||
Originations of mortgage warehouse purchase loans
|
|
(5,128,767
|
)
|
|
(3,640,235
|
)
|
|
—
|
|
|||
Proceeds from pay-offs of mortgage warehouse purchase loans
|
|
5,123,171
|
|
|
3,575,863
|
|
|
—
|
|
|||
Additions to premises and equipment
|
|
(38,110
|
)
|
|
(13,193
|
)
|
|
(6,139
|
)
|
|||
Proceeds from sale of premises and equipment
|
|
14,479
|
|
|
16
|
|
|
332
|
|
|||
Proceeds from sale of other real estate owned
|
|
3,520
|
|
|
9,433
|
|
|
1,860
|
|
|||
Proceeds from sale of repossessed assets
|
|
—
|
|
|
1,010
|
|
|
—
|
|
|||
Capitalized additions to other real estate
|
|
—
|
|
|
(1,030
|
)
|
|
—
|
|
|||
Cash received from acquired bank
|
|
44,723
|
|
|
148,444
|
|
|
—
|
|
|||
Cash paid in connection with acquisition
|
|
(31,016
|
)
|
|
(17,773
|
)
|
|
—
|
|
|||
Selling costs paid in connection with branch sale
|
|
—
|
|
|
(235
|
)
|
|
(107
|
)
|
|||
Net cash transferred in branch sale
|
|
—
|
|
|
(58,687
|
)
|
|
(2,399
|
)
|
|||
Net cash used in investing activities
|
|
(656,707
|
)
|
|
(662,333
|
)
|
|
(609,304
|
)
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
||||||
Net increase in demand deposits, money market and savings accounts
|
|
363,003
|
|
|
610,279
|
|
|
521,100
|
|
|||
Net increase (decrease) in time deposits
|
|
148,891
|
|
|
(210,382
|
)
|
|
11,670
|
|
|||
Repayments of FHLB advances
|
|
(1,985,667
|
)
|
|
(130,079
|
)
|
|
(402,579
|
)
|
|||
Proceeds from FHLB advances
|
|
1,685,000
|
|
|
200,000
|
|
|
575,000
|
|
|||
Net change in repurchase agreements
|
|
—
|
|
|
(9,158
|
)
|
|
8,528
|
|
|||
Repayments of other borrowings
|
|
—
|
|
|
—
|
|
|
(5,798
|
)
|
|||
Proceeds from other borrowings, net of issuance costs
|
|
—
|
|
|
29,255
|
|
|
43,150
|
|
|||
Proceeds from exercise of common stock warrants
|
|
2,533
|
|
|
55
|
|
|
—
|
|
|||
Offering costs paid in connection with acquired bank
|
|
(209
|
)
|
|
(942
|
)
|
|
—
|
|
|||
Proceeds from sale of common stock, net
|
|
—
|
|
|
26,816
|
|
|
19,929
|
|
|||
Redemption of preferred stock
|
|
—
|
|
|
—
|
|
|
(23,938
|
)
|
|||
Dividends paid
|
|
(15,908
|
)
|
|
(10,231
|
)
|
|
(6,287
|
)
|
|||
Net cash provided by financing activities
|
|
197,643
|
|
|
505,613
|
|
|
740,775
|
|
|||
Net change in cash and cash equivalents
|
|
(300,323
|
)
|
|
(73,925
|
)
|
|
211,748
|
|
|||
Cash and cash equivalents at beginning of year
|
|
431,102
|
|
|
505,027
|
|
|
293,279
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
130,779
|
|
|
$
|
431,102
|
|
|
$
|
505,027
|
|
•
|
Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or-transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when the performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied.
|
•
|
Gains/losses on the sale of other real estate owned - generally recognized when the performance obligation is complete which is typically at delivery of control over the property to the buyer at time of each real estate closing.
|
•
|
Other noninterest income - includes the Company's correspondent bank earnings credit, mortgage warehouse purchase program fees, acquired loan recoveries, wealth management referral income, other deposit fees, and merchant interchange income. The majority of these fees in other noninterest income are not subject to the requirements of ASC 606. The wealth management referral fees, other deposit fees and merchant interchange income are in the scope of ASC 606, and payment for such performance obligations are generally received at the time the performance obligations are satisfied.
|
|
Years ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Basic earnings per share:
|
|
|
|
|
|
||||||
Net income
|
$
|
128,259
|
|
|
$
|
76,512
|
|
|
$
|
53,540
|
|
Less: Preferred stock dividends
|
—
|
|
|
—
|
|
|
8
|
|
|||
Net income after preferred stock dividends
|
128,259
|
|
|
76,512
|
|
|
53,532
|
|
|||
Less:
|
|
|
|
|
|
||||||
Undistributed earnings allocated to participating securities
|
976
|
|
|
626
|
|
|
774
|
|
|||
Dividends paid on participating securities
|
139
|
|
|
97
|
|
|
103
|
|
|||
Net income available to common shareholders
|
$
|
127,144
|
|
|
$
|
75,789
|
|
|
$
|
52,655
|
|
Weighted-average basic shares outstanding
|
29,341,843
|
|
|
25,394,079
|
|
|
18,198,578
|
|
|||
Basic earnings per share
|
$
|
4.33
|
|
|
$
|
2.98
|
|
|
$
|
2.89
|
|
Diluted earnings per share:
|
|
|
|
|
|
||||||
Net income available to common shareholders
|
$
|
127,144
|
|
|
$
|
75,789
|
|
|
$
|
52,655
|
|
Weighted-average basic shares outstanding
|
29,341,843
|
|
|
25,394,079
|
|
|
18,198,578
|
|
|||
Add dilutive stock warrants
|
—
|
|
|
106,070
|
|
|
86,646
|
|
|||
Total weighted-average diluted shares outstanding
|
29,341,843
|
|
|
25,500,149
|
|
|
18,285,224
|
|
|||
Diluted earnings per share
|
$
|
4.33
|
|
|
$
|
2.97
|
|
|
$
|
2.88
|
|
Anti-dilutive participating securities
|
114,087
|
|
|
123,564
|
|
|
92,196
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash transactions:
|
|
|
|
|
|
|
||||||
Interest expense paid
|
|
$
|
79,509
|
|
|
$
|
41,802
|
|
|
$
|
25,015
|
|
Income taxes paid
|
|
$
|
25,109
|
|
|
$
|
34,161
|
|
|
$
|
26,485
|
|
Noncash transactions:
|
|
|
|
|
|
|
||||||
Transfers of loans to other real estate owned
|
|
$
|
410
|
|
|
$
|
1,201
|
|
|
$
|
1,713
|
|
Transfers of loans to other assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
124
|
|
Excess tax deficiency on restricted stock vested
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(137
|
)
|
Transfer of bank premises to other real estate
|
|
$
|
—
|
|
|
$
|
2,716
|
|
|
$
|
—
|
|
Transfer of repurchase accounts to deposits
|
|
$
|
—
|
|
|
$
|
8,845
|
|
|
$
|
20,688
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Noncash assets transferred:
|
|
|
|
|
|
|
||||||
Loans, including accrued interest
|
|
$
|
—
|
|
|
$
|
106,008
|
|
|
$
|
2
|
|
Premises and equipment
|
|
—
|
|
|
7,473
|
|
|
2,193
|
|
|||
Core deposit intangible, net
|
|
—
|
|
|
3,011
|
|
|
—
|
|
|||
Other assets
|
|
—
|
|
|
74
|
|
|
—
|
|
|||
Total assets
|
|
$
|
—
|
|
|
$
|
116,566
|
|
|
$
|
2,195
|
|
Noncash liabilities transferred:
|
|
|
|
|
|
|
||||||
Deposits, including interest
|
|
$
|
—
|
|
|
$
|
178,279
|
|
|
$
|
4,628
|
|
Other liabilities
|
|
—
|
|
|
129
|
|
|
30
|
|
|||
Total liabilities
|
|
$
|
—
|
|
|
$
|
178,408
|
|
|
$
|
4,658
|
|
Cash and cash equivalents transferred in branch sales
|
|
$
|
—
|
|
|
$
|
1,712
|
|
|
$
|
208
|
|
Deposit premium received
|
|
$
|
—
|
|
|
$
|
7,107
|
|
|
$
|
64
|
|
Cash paid to buyer, net of deposit premium
|
|
$
|
—
|
|
|
$
|
56,975
|
|
|
$
|
2,191
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Noncash assets acquired
|
|
|
|
|
|
|
||||||
Certificates of deposit held in other banks
|
|
$
|
—
|
|
|
$
|
11,025
|
|
|
$
|
—
|
|
Securities available for sale
|
|
24,721
|
|
|
336,540
|
|
|
—
|
|
|||
Restricted stock
|
|
3,357
|
|
|
11,110
|
|
|
—
|
|
|||
Loans
|
|
651,769
|
|
|
1,384,210
|
|
|
—
|
|
|||
Premises and equipment
|
|
4,863
|
|
|
63,166
|
|
|
—
|
|
|||
Other real estate owned
|
|
—
|
|
|
11,212
|
|
|
—
|
|
|||
Goodwill
|
|
100,339
|
|
|
363,139
|
|
|
—
|
|
|||
Core deposit intangibles
|
|
7,537
|
|
|
36,717
|
|
|
—
|
|
|||
Bank owned life insurance
|
|
8,181
|
|
|
53,213
|
|
|
—
|
|
|||
Other assets
|
|
6,385
|
|
|
25,379
|
|
|
—
|
|
|||
Total assets
|
|
$
|
807,152
|
|
|
$
|
2,295,711
|
|
|
$
|
—
|
|
Noncash liabilities assumed:
|
|
|
|
|
|
|
||||||
Deposits
|
|
$
|
593,078
|
|
|
$
|
1,825,181
|
|
|
$
|
—
|
|
Repurchase agreements
|
|
—
|
|
|
18,003
|
|
|
—
|
|
|||
FHLB advances
|
|
60,000
|
|
|
—
|
|
|
—
|
|
|||
Junior subordinated debt
|
|
—
|
|
|
9,359
|
|
|
—
|
|
|||
Other liabilities
|
|
10,518
|
|
|
7,697
|
|
|
—
|
|
|||
Total liabilities
|
|
$
|
663,596
|
|
|
$
|
1,860,240
|
|
|
$
|
—
|
|
Cash and cash equivalents acquired from acquisitions
|
|
$
|
44,723
|
|
|
$
|
148,444
|
|
|
$
|
—
|
|
Cash paid to shareholders of acquired banks
|
|
$
|
31,016
|
|
|
$
|
17,773
|
|
|
$
|
—
|
|
Fair value of common stock issued to shareholders of acquired bank
|
|
$
|
157,263
|
|
|
$
|
566,142
|
|
|
$
|
—
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Noncash assets acquired:
|
|
|
|
|
|
|
||||||
Loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
735
|
|
Premises and equipment
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other real estate owned
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Goodwill
|
|
—
|
|
|
—
|
|
|
(324
|
)
|
|||
Core deposit intangibles
|
|
—
|
|
|
—
|
|
|
(216
|
)
|
|||
Other assets
|
|
—
|
|
|
—
|
|
|
(175
|
)
|
|||
Total assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20
|
|
Noncash liabilities assumed:
|
|
|
|
|
|
|
||||||
Other liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20
|
|
Total liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20
|
|
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
Securities Available for Sale
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasuries
|
|
$
|
30,110
|
|
|
$
|
—
|
|
|
$
|
(467
|
)
|
|
$
|
29,643
|
|
Government agency securities
|
|
152,969
|
|
|
80
|
|
|
(2,819
|
)
|
|
150,230
|
|
||||
Obligations of state and municipal subdivisions
|
|
187,366
|
|
|
727
|
|
|
(3,086
|
)
|
|
185,007
|
|
||||
Residential pass-through securities guaranteed by FNMA, GNMA, and FHLMC
|
|
326,168
|
|
|
128
|
|
|
(5,826
|
)
|
|
320,470
|
|
||||
|
|
$
|
696,613
|
|
|
$
|
935
|
|
|
$
|
(12,198
|
)
|
|
$
|
685,350
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasuries
|
|
$
|
37,480
|
|
|
$
|
—
|
|
|
$
|
(326
|
)
|
|
$
|
37,154
|
|
Government agency securities
|
|
213,649
|
|
|
83
|
|
|
(2,223
|
)
|
|
211,509
|
|
||||
Obligations of state and municipal subdivisions
|
|
228,782
|
|
|
2,118
|
|
|
(1,287
|
)
|
|
229,613
|
|
||||
Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC, FHR and GNR
|
|
274,356
|
|
|
1,229
|
|
|
(1,208
|
)
|
|
274,377
|
|
||||
Other securities
|
|
10,397
|
|
|
—
|
|
|
(48
|
)
|
|
10,349
|
|
||||
|
|
$
|
764,664
|
|
|
$
|
3,430
|
|
|
$
|
(5,092
|
)
|
|
$
|
763,002
|
|
|
Years ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Proceeds from sale
|
$
|
102,647
|
|
|
$
|
31,367
|
|
|
$
|
5,399
|
|
Gross gains
|
$
|
268
|
|
|
$
|
176
|
|
|
$
|
4
|
|
Gross losses
|
$
|
849
|
|
|
$
|
52
|
|
|
$
|
—
|
|
|
|
December 31, 2018
|
||||||
|
|
Securities Available for Sale
|
||||||
|
|
Amortized
Cost
|
|
Fair
Value
|
||||
Due in one year or less
|
|
$
|
40,616
|
|
|
$
|
40,375
|
|
Due from one year to five years
|
|
156,743
|
|
|
154,139
|
|
||
Due from five to ten years
|
|
82,488
|
|
|
81,198
|
|
||
Thereafter
|
|
90,598
|
|
|
89,168
|
|
||
|
|
370,445
|
|
|
364,880
|
|
||
Residential pass-through securities guaranteed by FNMA, GNMA, and FHLMC
|
|
326,168
|
|
|
320,470
|
|
||
|
|
$
|
696,613
|
|
|
$
|
685,350
|
|
|
|
Less Than 12 Months
|
|
Greater Than 12 Months
|
|
Total
|
||||||||||||||||||||||
Description of Securities
|
|
Number of Securities
|
|
Estimated
Fair Value
|
|
Unrealized
Losses
|
|
Number of Securities
|
|
Estimated
Fair Value
|
|
Unrealized
Losses
|
|
Estimated
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. treasuries
|
|
1
|
|
$
|
9,749
|
|
|
$
|
(6
|
)
|
|
5
|
|
$
|
19,894
|
|
|
$
|
(461
|
)
|
|
$
|
29,643
|
|
|
$
|
(467
|
)
|
Government agency securities
|
|
4
|
|
6,068
|
|
|
(32
|
)
|
|
43
|
|
126,745
|
|
|
(2,787
|
)
|
|
132,813
|
|
|
(2,819
|
)
|
||||||
Obligations of state and municipal subdivisions
|
|
88
|
|
32,493
|
|
|
(326
|
)
|
|
218
|
|
105,817
|
|
|
(2,760
|
)
|
|
138,310
|
|
|
(3,086
|
)
|
||||||
Residential pass-through securities guaranteed by FNMA, GNMA, and FHLMC
|
|
56
|
|
112,114
|
|
|
(1,031
|
)
|
|
101
|
|
186,713
|
|
|
(4,795
|
)
|
|
298,827
|
|
|
(5,826
|
)
|
||||||
|
|
149
|
|
$
|
160,424
|
|
|
$
|
(1,395
|
)
|
|
367
|
|
$
|
439,169
|
|
|
$
|
(10,803
|
)
|
|
$
|
599,593
|
|
|
$
|
(12,198
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. treasuries
|
|
7
|
|
$
|
34,053
|
|
|
$
|
(267
|
)
|
|
1
|
|
$
|
3,101
|
|
|
$
|
(59
|
)
|
|
$
|
37,154
|
|
|
$
|
(326
|
)
|
Government agency securities
|
|
51
|
|
142,991
|
|
|
(1,155
|
)
|
|
27
|
|
60,030
|
|
|
(1,068
|
)
|
|
203,021
|
|
|
(2,223
|
)
|
||||||
Obligations of state and municipal subdivisions
|
|
202
|
|
87,625
|
|
|
(564
|
)
|
|
54
|
|
26,883
|
|
|
(723
|
)
|
|
114,508
|
|
|
(1,287
|
)
|
||||||
Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC, FHR and GNR
|
|
55
|
|
125,970
|
|
|
(834
|
)
|
|
10
|
|
25,398
|
|
|
(374
|
)
|
|
151,368
|
|
|
(1,208
|
)
|
||||||
Other securities
|
|
1
|
|
10,349
|
|
|
(48
|
)
|
|
—
|
|
—
|
|
|
—
|
|
|
10,349
|
|
|
(48
|
)
|
||||||
|
|
316
|
|
$
|
400,988
|
|
|
$
|
(2,868
|
)
|
|
92
|
|
$
|
115,412
|
|
|
$
|
(2,224
|
)
|
|
$
|
516,400
|
|
|
$
|
(5,092
|
)
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Commercial
|
|
$
|
1,361,104
|
|
|
$
|
1,059,984
|
|
Real estate:
|
|
|
|
|
||||
Commercial
|
|
4,141,356
|
|
|
3,369,892
|
|
||
Commercial construction, land and land development
|
|
905,421
|
|
|
744,868
|
|
||
Residential
|
|
1,049,521
|
|
|
892,293
|
|
||
Single family interim construction
|
|
331,748
|
|
|
289,680
|
|
||
Agricultural
|
|
66,638
|
|
|
82,583
|
|
||
Consumer
|
|
31,759
|
|
|
34,639
|
|
||
Other
|
|
253
|
|
|
304
|
|
||
|
|
7,887,800
|
|
|
6,474,243
|
|
||
Deferred loan fees
|
|
(3,303
|
)
|
|
(2,568
|
)
|
||
Allowance for loan losses
|
|
(44,802
|
)
|
|
(39,402
|
)
|
||
|
|
$
|
7,839,695
|
|
|
$
|
6,432,273
|
|
|
Commercial
|
Commercial
Real Estate, Construction,
Land and Land
Development
|
Residential
Real Estate
|
Single-Family
Interim
Construction
|
Agricultural
|
Consumer
|
Other
|
Unallocated
|
Total
|
||||||||||||||||||
Year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at the beginning of year
|
$
|
10,599
|
|
$
|
23,301
|
|
$
|
3,447
|
|
$
|
1,583
|
|
$
|
250
|
|
$
|
205
|
|
$
|
(32
|
)
|
$
|
49
|
|
$
|
39,402
|
|
Provision for loan losses
|
4,973
|
|
4,909
|
|
(124
|
)
|
(181
|
)
|
(9
|
)
|
69
|
|
210
|
|
13
|
|
9,860
|
|
|||||||||
Charge-offs
|
(3,863
|
)
|
(435
|
)
|
(6
|
)
|
—
|
|
—
|
|
(93
|
)
|
(228
|
)
|
—
|
|
(4,625
|
)
|
|||||||||
Recoveries
|
84
|
|
20
|
|
3
|
|
—
|
|
—
|
|
5
|
|
53
|
|
—
|
|
165
|
|
|||||||||
Balance at the end of year
|
$
|
11,793
|
|
$
|
27,795
|
|
$
|
3,320
|
|
$
|
1,402
|
|
$
|
241
|
|
$
|
186
|
|
$
|
3
|
|
$
|
62
|
|
$
|
44,802
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at the beginning of year
|
$
|
8,593
|
|
$
|
18,399
|
|
$
|
2,760
|
|
$
|
1,301
|
|
$
|
207
|
|
$
|
242
|
|
$
|
29
|
|
$
|
60
|
|
$
|
31,591
|
|
Provision for loan losses
|
2,059
|
|
4,886
|
|
683
|
|
416
|
|
43
|
|
99
|
|
90
|
|
(11
|
)
|
8,265
|
|
|||||||||
Charge-offs
|
(81
|
)
|
(15
|
)
|
—
|
|
(134
|
)
|
—
|
|
(182
|
)
|
(190
|
)
|
—
|
|
(602
|
)
|
|||||||||
Recoveries
|
28
|
|
31
|
|
4
|
|
—
|
|
—
|
|
46
|
|
39
|
|
—
|
|
148
|
|
|||||||||
Balance at the end of year
|
$
|
10,599
|
|
$
|
23,301
|
|
$
|
3,447
|
|
$
|
1,583
|
|
$
|
250
|
|
$
|
205
|
|
$
|
(32
|
)
|
$
|
49
|
|
$
|
39,402
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Year ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at the beginning of year
|
$
|
10,573
|
|
$
|
13,007
|
|
$
|
2,339
|
|
$
|
769
|
|
$
|
215
|
|
$
|
164
|
|
$
|
8
|
|
$
|
(32
|
)
|
$
|
27,043
|
|
Provision for loan losses
|
2,391
|
|
5,436
|
|
810
|
|
532
|
|
(8
|
)
|
97
|
|
90
|
|
92
|
|
9,440
|
|
|||||||||
Charge-offs
|
(4,384
|
)
|
(54
|
)
|
(401
|
)
|
—
|
|
—
|
|
(27
|
)
|
(104
|
)
|
—
|
|
(4,970
|
)
|
|||||||||
Recoveries
|
13
|
|
10
|
|
12
|
|
—
|
|
—
|
|
8
|
|
35
|
|
—
|
|
78
|
|
|||||||||
Balance at the end of year
|
$
|
8,593
|
|
$
|
18,399
|
|
$
|
2,760
|
|
$
|
1,301
|
|
$
|
207
|
|
$
|
242
|
|
$
|
29
|
|
$
|
60
|
|
$
|
31,591
|
|
|
Commercial
|
Commercial
Real Estate, Construction, Land and Land Development |
Residential
Real Estate
|
Single-Family
Interim
Construction
|
Agricultural
|
Consumer
|
Other
|
Unallocated
|
Total
|
||||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Allowance for losses:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Individually evaluated for impairment
|
$
|
2,633
|
|
$
|
—
|
|
$
|
92
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2,727
|
|
Collectively evaluated for impairment
|
9,115
|
|
27,795
|
|
3,228
|
|
1,402
|
|
241
|
|
184
|
|
3
|
|
62
|
|
42,030
|
|
|||||||||
Loans acquired with deteriorated credit quality
|
45
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
45
|
|
|||||||||
Ending balance
|
$
|
11,793
|
|
$
|
27,795
|
|
$
|
3,320
|
|
$
|
1,402
|
|
$
|
241
|
|
$
|
186
|
|
$
|
3
|
|
$
|
62
|
|
$
|
44,802
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Individually evaluated for impairment
|
$
|
7,288
|
|
$
|
1,734
|
|
$
|
1,943
|
|
$
|
3,578
|
|
$
|
—
|
|
$
|
32
|
|
$
|
—
|
|
$
|
—
|
|
$
|
14,575
|
|
Collectively evaluated for impairment
|
1,335,194
|
|
4,955,178
|
|
1,044,265
|
|
328,170
|
|
66,032
|
|
31,699
|
|
253
|
|
—
|
|
7,760,791
|
|
|||||||||
Acquired with deteriorated credit quality
|
18,622
|
|
89,865
|
|
3,313
|
|
—
|
|
606
|
|
28
|
|
—
|
|
—
|
|
112,434
|
|
|||||||||
Ending balance
|
$
|
1,361,104
|
|
$
|
5,046,777
|
|
$
|
1,049,521
|
|
$
|
331,748
|
|
$
|
66,638
|
|
$
|
31,759
|
|
$
|
253
|
|
$
|
—
|
|
$
|
7,887,800
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Allowance for losses:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Individually evaluated for impairment
|
$
|
3,500
|
|
$
|
311
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3,813
|
|
Collectively evaluated for impairment
|
7,099
|
|
22,990
|
|
3,447
|
|
1,583
|
|
250
|
|
203
|
|
(32
|
)
|
49
|
|
35,589
|
|
|||||||||
Loans acquired with deteriorated credit quality
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Ending balance
|
$
|
10,599
|
|
$
|
23,301
|
|
$
|
3,447
|
|
$
|
1,583
|
|
$
|
250
|
|
$
|
205
|
|
$
|
(32
|
)
|
$
|
49
|
|
$
|
39,402
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Individually evaluated for impairment
|
$
|
10,297
|
|
$
|
3,054
|
|
$
|
1,727
|
|
$
|
—
|
|
$
|
—
|
|
$
|
74
|
|
$
|
—
|
|
$
|
—
|
|
$
|
15,152
|
|
Collectively evaluated for impairment
|
1,037,401
|
|
4,039,332
|
|
887,292
|
|
289,680
|
|
78,646
|
|
34,544
|
|
304
|
|
—
|
|
6,367,199
|
|
|||||||||
Acquired with deteriorated credit quality
|
12,286
|
|
72,374
|
|
3,274
|
|
—
|
|
3,937
|
|
21
|
|
—
|
|
—
|
|
91,892
|
|
|||||||||
Ending balance
|
$
|
1,059,984
|
|
$
|
4,114,760
|
|
$
|
892,293
|
|
$
|
289,680
|
|
$
|
82,583
|
|
$
|
34,639
|
|
$
|
304
|
|
$
|
—
|
|
$
|
6,474,243
|
|
|
|
Commercial
|
|
Commercial
Real Estate, Construction, Land and Land Development |
|
Residential Real Estate
|
|
Single-Family
Interim
Construction
|
|
Agricultural
|
|
Consumer
|
|
Other
|
|
Total
|
||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Nonaccrual loans
|
|
$
|
5,224
|
|
|
$
|
1,329
|
|
|
$
|
1,775
|
|
|
$
|
3,578
|
|
|
$
|
—
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
11,938
|
|
Loans past due 90 days and still accruing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||||||
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing)
|
|
114
|
|
|
405
|
|
|
168
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
687
|
|
||||||||
|
|
$
|
5,338
|
|
|
$
|
1,734
|
|
|
$
|
1,943
|
|
|
$
|
3,578
|
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
12,630
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Nonaccrual loans
|
|
$
|
10,304
|
|
|
$
|
2,716
|
|
|
$
|
998
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
55
|
|
|
$
|
—
|
|
|
$
|
14,073
|
|
Loans past due 90 days and still accruing
|
|
8
|
|
|
120
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
136
|
|
||||||||
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing)
|
|
—
|
|
|
455
|
|
|
730
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
1,205
|
|
||||||||
|
|
$
|
10,312
|
|
|
$
|
3,291
|
|
|
$
|
1,736
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
75
|
|
|
$
|
—
|
|
|
$
|
15,414
|
|
|
|
Commercial
|
|
Commercial
Real Estate, Construction, Land and Land Development |
|
Residential
Real Estate
|
|
Single-Family
Interim
Construction
|
|
Agricultural
|
|
Consumer
|
|
Other
|
|
Total
|
||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Recorded investment in impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired loans with an allowance for loan losses
|
|
$
|
6,416
|
|
|
$
|
—
|
|
|
$
|
134
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
6,551
|
|
Impaired loans with no allowance for loan losses
|
|
872
|
|
|
1,734
|
|
|
1,809
|
|
|
3,578
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
8,024
|
|
||||||||
Total
|
|
$
|
7,288
|
|
|
$
|
1,734
|
|
|
$
|
1,943
|
|
|
$
|
3,578
|
|
|
$
|
—
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
14,575
|
|
Unpaid principal balance of impaired loans
|
|
$
|
9,822
|
|
|
$
|
1,860
|
|
|
$
|
2,056
|
|
|
$
|
3,579
|
|
|
$
|
—
|
|
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
17,355
|
|
Allowance for loan losses on impaired loans
|
|
$
|
2,633
|
|
|
$
|
—
|
|
|
$
|
92
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2,727
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Recorded investment in impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired loans with an allowance for loan losses
|
|
$
|
9,255
|
|
|
$
|
1,793
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
11,050
|
|
Impaired loans with no allowance for loan losses
|
|
1,042
|
|
|
1,261
|
|
|
1,727
|
|
|
—
|
|
|
—
|
|
|
72
|
|
|
—
|
|
|
4,102
|
|
||||||||
Total
|
|
$
|
10,297
|
|
|
$
|
3,054
|
|
|
$
|
1,727
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
74
|
|
|
$
|
—
|
|
|
$
|
15,152
|
|
Unpaid principal balance of impaired loans
|
|
$
|
13,456
|
|
|
$
|
3,124
|
|
|
$
|
1,818
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
197
|
|
|
$
|
—
|
|
|
$
|
18,595
|
|
Allowance for loan losses on impaired loans
|
|
$
|
3,500
|
|
|
$
|
311
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
3,813
|
|
For the year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Average recorded investment in impaired loans
|
|
$
|
8,919
|
|
|
$
|
2,667
|
|
|
$
|
2,033
|
|
|
$
|
716
|
|
|
$
|
—
|
|
|
$
|
46
|
|
|
$
|
—
|
|
|
$
|
14,381
|
|
Interest income recognized on impaired loans
|
|
$
|
119
|
|
|
$
|
65
|
|
|
$
|
81
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
268
|
|
For the year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Average recorded investment in impaired loans
|
|
$
|
8,524
|
|
|
$
|
3,690
|
|
|
$
|
2,431
|
|
|
$
|
177
|
|
|
$
|
—
|
|
|
$
|
218
|
|
|
$
|
—
|
|
|
$
|
15,040
|
|
Interest income recognized on impaired loans
|
|
$
|
8
|
|
|
$
|
428
|
|
|
$
|
58
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
499
|
|
For the year ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Average recorded investment in impaired loans
|
|
$
|
11,783
|
|
|
$
|
3,324
|
|
|
$
|
2,773
|
|
|
$
|
177
|
|
|
$
|
34
|
|
|
$
|
118
|
|
|
$
|
—
|
|
|
$
|
18,209
|
|
Interest income recognized on impaired loans
|
|
$
|
58
|
|
|
$
|
73
|
|
|
$
|
97
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
228
|
|
|
|
Commercial
|
|
Commercial
Real Estate, Construction, Land and Land Development |
|
Residential
Real Estate
|
|
Single-Family
Interim
Construction
|
|
Agricultural
|
|
Consumer
|
|
Other
|
|
Total
|
||||||||||||||||
Troubled debt restructurings during the year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Number of contracts
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
Pre-restructuring outstanding recorded investment
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
114
|
|
Post-restructuring outstanding recorded investment
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Troubled debt restructurings during the year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Number of contracts
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
3
|
|
||||||||
Pre-restructuring outstanding recorded investment
|
|
$
|
873
|
|
|
$
|
—
|
|
|
$
|
465
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
1,360
|
|
Post-restructuring outstanding recorded investment
|
|
$
|
873
|
|
|
$
|
—
|
|
|
$
|
465
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
1,360
|
|
|
|
Loans
30-89 Days
Past Due
|
|
Loans
90 or More
Past Due
|
|
Total Past
Due Loans
|
|
Current
Loans
|
|
Total
Loans
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
$
|
15,426
|
|
|
$
|
4,366
|
|
|
$
|
19,792
|
|
|
$
|
1,322,690
|
|
|
$
|
1,342,482
|
|
Commercial real estate, construction, land and land development
|
|
3,435
|
|
|
—
|
|
|
3,435
|
|
|
4,953,477
|
|
|
4,956,912
|
|
|||||
Residential real estate
|
|
4,199
|
|
|
1,035
|
|
|
5,234
|
|
|
1,040,974
|
|
|
1,046,208
|
|
|||||
Single-family interim construction
|
|
774
|
|
|
3,578
|
|
|
4,352
|
|
|
327,396
|
|
|
331,748
|
|
|||||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,032
|
|
|
66,032
|
|
|||||
Consumer
|
|
135
|
|
|
35
|
|
|
170
|
|
|
31,561
|
|
|
31,731
|
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
253
|
|
|
253
|
|
|||||
|
|
23,969
|
|
|
9,014
|
|
|
32,983
|
|
|
7,742,383
|
|
|
7,775,366
|
|
|||||
Acquired with deteriorated credit quality
|
|
2,939
|
|
|
957
|
|
|
3,896
|
|
|
108,538
|
|
|
112,434
|
|
|||||
|
|
$
|
26,908
|
|
|
$
|
9,971
|
|
|
$
|
36,879
|
|
|
$
|
7,850,921
|
|
|
$
|
7,887,800
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
$
|
730
|
|
|
$
|
10,300
|
|
|
$
|
11,030
|
|
|
$
|
1,036,668
|
|
|
$
|
1,047,698
|
|
Commercial real estate, construction, land and land development
|
|
4,083
|
|
|
1,944
|
|
|
6,027
|
|
|
4,036,359
|
|
|
4,042,386
|
|
|||||
Residential real estate
|
|
6,269
|
|
|
138
|
|
|
6,407
|
|
|
882,612
|
|
|
889,019
|
|
|||||
Single-family interim construction
|
|
1,436
|
|
|
—
|
|
|
1,436
|
|
|
288,244
|
|
|
289,680
|
|
|||||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78,646
|
|
|
78,646
|
|
|||||
Consumer
|
|
373
|
|
|
47
|
|
|
420
|
|
|
34,198
|
|
|
34,618
|
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
304
|
|
|
304
|
|
|||||
|
|
12,891
|
|
|
12,429
|
|
|
25,320
|
|
|
6,357,031
|
|
|
6,382,351
|
|
|||||
Acquired with deteriorated credit quality
|
|
2,748
|
|
|
4,013
|
|
|
6,761
|
|
|
85,131
|
|
|
91,892
|
|
|||||
|
|
$
|
15,639
|
|
|
$
|
16,442
|
|
|
$
|
32,081
|
|
|
$
|
6,442,162
|
|
|
$
|
6,474,243
|
|
|
|
Pass
|
|
Pass/
Watch
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
$
|
1,279,024
|
|
|
$
|
18,378
|
|
|
$
|
30,783
|
|
|
$
|
32,919
|
|
|
$
|
—
|
|
|
$
|
1,361,104
|
|
Commercial real estate, construction, land and land development
|
|
4,895,217
|
|
|
81,693
|
|
|
40,601
|
|
|
29,266
|
|
|
—
|
|
|
5,046,777
|
|
||||||
Residential real estate
|
|
1,038,283
|
|
|
3,617
|
|
|
707
|
|
|
6,914
|
|
|
—
|
|
|
1,049,521
|
|
||||||
Single-family interim construction
|
|
327,939
|
|
|
—
|
|
|
231
|
|
|
3,578
|
|
|
—
|
|
|
331,748
|
|
||||||
Agricultural
|
|
61,055
|
|
|
2,918
|
|
|
2,093
|
|
|
572
|
|
|
—
|
|
|
66,638
|
|
||||||
Consumer
|
|
31,559
|
|
|
67
|
|
|
—
|
|
|
133
|
|
|
—
|
|
|
31,759
|
|
||||||
Other
|
|
253
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
253
|
|
||||||
|
|
$
|
7,633,330
|
|
|
$
|
106,673
|
|
|
$
|
74,415
|
|
|
$
|
73,382
|
|
|
$
|
—
|
|
|
$
|
7,887,800
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
$
|
989,953
|
|
|
$
|
35,105
|
|
|
$
|
3,737
|
|
|
$
|
31,189
|
|
|
$
|
—
|
|
|
$
|
1,059,984
|
|
Commercial real estate, construction, land and land development
|
|
4,040,385
|
|
|
46,288
|
|
|
11,915
|
|
|
16,172
|
|
|
—
|
|
|
4,114,760
|
|
||||||
Residential real estate
|
|
883,653
|
|
|
2,722
|
|
|
462
|
|
|
5,456
|
|
|
—
|
|
|
892,293
|
|
||||||
Single-family interim construction
|
|
288,020
|
|
|
1,660
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
289,680
|
|
||||||
Agricultural
|
|
59,392
|
|
|
5,762
|
|
|
13,802
|
|
|
3,627
|
|
|
—
|
|
|
82,583
|
|
||||||
Consumer
|
|
34,510
|
|
|
25
|
|
|
4
|
|
|
100
|
|
|
—
|
|
|
34,639
|
|
||||||
Other
|
|
304
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
304
|
|
||||||
|
|
$
|
6,296,217
|
|
|
$
|
91,562
|
|
|
$
|
29,920
|
|
|
$
|
56,544
|
|
|
$
|
—
|
|
|
$
|
6,474,243
|
|
|
|
Pass
|
|
Pass/
Watch |
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||||
December 31, 2018
|
|
$
|
40,940
|
|
|
$
|
32,427
|
|
|
$
|
14,817
|
|
|
$
|
24,250
|
|
|
$
|
—
|
|
|
$
|
112,434
|
|
December 31, 2017
|
|
36,928
|
|
|
32,674
|
|
|
2,662
|
|
|
19,628
|
|
|
—
|
|
|
91,892
|
|
|
|
Acquisition Date
|
||||||
|
|
June 1, 2018
|
|
April 1, 2017
|
||||
|
|
Integrity Bancshares, Inc.
|
|
Carlile Bancshares, Inc.
|
||||
Outstanding balance
|
|
$
|
57,317
|
|
|
$
|
101,153
|
|
Nonaccretable difference
|
|
(9,969
|
)
|
|
(14,700
|
)
|
||
Accretable yield
|
|
(128
|
)
|
|
(685
|
)
|
||
Carrying amount
|
|
$
|
47,220
|
|
|
$
|
85,768
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Outstanding balance
|
$
|
129,333
|
|
|
$
|
105,685
|
|
Carrying amount
|
112,434
|
|
|
91,892
|
|
|
|
2018
|
|
2017
|
||||
Balance at January 1
|
|
$
|
1,546
|
|
|
$
|
1,526
|
|
Additions
|
|
128
|
|
|
685
|
|
||
Accretion
|
|
(1,557
|
)
|
|
(665
|
)
|
||
Net transfers to/from nonaccretable
|
|
1,319
|
|
|
—
|
|
||
Balance at December 31
|
|
$
|
1,436
|
|
|
$
|
1,546
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Land
|
$
|
43,746
|
|
|
$
|
45,048
|
|
Building
|
93,793
|
|
|
107,144
|
|
||
Furniture, fixtures and equipment
|
34,602
|
|
|
31,290
|
|
||
Aircraft
|
8,947
|
|
|
8,807
|
|
||
Leasehold and tenant improvements
|
4,638
|
|
|
2,077
|
|
||
Construction in progress
|
32,399
|
|
|
252
|
|
||
|
218,125
|
|
|
194,618
|
|
||
Less accumulated depreciation
|
(50,259
|
)
|
|
(46,783
|
)
|
||
|
$
|
167,866
|
|
|
$
|
147,835
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Core deposit intangible, beginning of the year
|
$
|
56,354
|
|
|
$
|
22,803
|
|
Additions: Integrity and Carlile acquisitions
|
7,537
|
|
|
36,717
|
|
||
Deletions: branch disposals
|
—
|
|
|
(3,166
|
)
|
||
Core deposit intangible, end of the year
|
63,891
|
|
|
56,354
|
|
||
Less accumulated amortization
|
(18,849
|
)
|
|
(13,110
|
)
|
||
|
$
|
45,042
|
|
|
$
|
43,244
|
|
First year
|
$
|
6,009
|
|
Second year
|
5,978
|
|
|
Third year
|
5,888
|
|
|
Fourth year
|
5,799
|
|
|
Fifth year
|
5,747
|
|
|
Thereafter
|
15,621
|
|
|
|
$
|
45,042
|
|
|
December 31,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
Noninterest-bearing demand accounts
|
$
|
2,145,930
|
|
|
27.7
|
%
|
|
$
|
1,907,770
|
|
|
28.7
|
%
|
Interest-bearing checking accounts
|
2,892,318
|
|
|
37.4
|
|
|
2,956,196
|
|
|
44.6
|
|
||
Savings accounts
|
293,108
|
|
|
3.8
|
|
|
283,036
|
|
|
4.3
|
|
||
Limited access money market accounts
|
1,286,135
|
|
|
16.6
|
|
|
591,421
|
|
|
8.9
|
|
||
Certificates of deposit and individual retirement accounts (IRA), less than $250,000
|
559,016
|
|
|
7.2
|
|
|
456,018
|
|
|
6.9
|
|
||
Certificates of deposit and individual retirement accounts (IRA), $250,000 and greater
|
561,287
|
|
|
7.3
|
|
|
438,381
|
|
|
6.6
|
|
||
|
$
|
7,737,794
|
|
|
100.0
|
%
|
|
$
|
6,632,822
|
|
|
100.0
|
%
|
First year
|
$
|
913,746
|
|
Second year
|
143,721
|
|
|
Third year
|
36,249
|
|
|
Fourth year
|
12,620
|
|
|
Fifth year
|
13,967
|
|
|
Thereafter
|
—
|
|
|
|
$
|
1,120,303
|
|
First year
|
$
|
115,000
|
|
Second year
|
150,000
|
|
|
Third year
|
25,000
|
|
|
Fourth year
|
—
|
|
|
Fifth year
|
—
|
|
|
Thereafter
|
—
|
|
|
|
$
|
290,000
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Unsecured subordinated debentures (notes) in the amount of $110,000. The balance of borrowings at December 31,
2018 and 2017
is net of discount and origination costs of $1,986 and $2,344, respectively. Interest payments of 5.875% are made semiannually on February 1 and August 1. The maturity date is August 1, 2024. The notes may not be redeemed prior to maturity and meet the criteria to be recognized as Tier 2 capital for regulatory purposes.
|
$
|
108,014
|
|
|
$
|
107,656
|
|
Unsecured subordinated debentures (notes) in the amount of $30,000. The balance of borrowings at December 31, 2018 and
2017
is net of origination costs of $698 and $745, respectively. Interest payments of 5.00% fixed rate are made semiannually on June 30 and December 31 through December 31, 2022. Thereafter, floating rate payments of 3 month LIBOR plus 2.83% are made quarterly in arrears on March 31, June 30, September 30, and December 31 through March 31, 2028. The maturity date is December 31, 2027 with an optional redemption at December 31, 2022. The notes meet the criteria to be recognized as Tier 2 capital for regulatory purposes.
|
29,302
|
|
|
29,255
|
|
||
|
$
|
137,316
|
|
|
$
|
136,911
|
|
|
Junior Subordinated Debentures Owed to Trusts
|
|
Carrying Value
|
|
Repricing Frequency
|
|
Interest Rate
|
|
Interest Rate Index
|
|
Maturity Date
|
||||
IB Trust I
|
$
|
5,155
|
|
|
$
|
5,155
|
|
|
Quarterly
|
|
5.79%
|
|
LIBOR + 3.25%
|
|
March 2033
|
IB Trust II
|
3,093
|
|
|
3,093
|
|
|
Quarterly
|
|
5.29
|
|
LIBOR + 2.85
|
|
March 2034
|
||
IB Trust III
|
3,712
|
|
|
3,712
|
|
|
Quarterly
|
|
5.05
|
|
LIBOR + 2.40
|
|
December 2035
|
||
IB Centex Trust I
|
2,578
|
|
|
2,578
|
|
|
Quarterly
|
|
5.90
|
|
LIBOR + 3.25
|
|
February 2035
|
||
Community Group Statutory Trust I
|
3,609
|
|
|
3,609
|
|
|
Quarterly
|
|
4.39
|
|
LIBOR + 1.60
|
|
June 2037
|
||
Northstar Trust II
|
5,155
|
|
|
3,739
|
|
|
Quarterly
|
|
4.46
|
|
LIBOR + 1.67
|
|
June 2037
|
||
Northstar Trust III
|
8,248
|
|
|
5,966
|
|
|
Quarterly
|
|
4.46
|
|
LIBOR + 1.67
|
|
September 2037
|
||
|
$
|
31,550
|
|
|
$
|
27,852
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Current income tax expense
|
$
|
29,801
|
|
|
$
|
28,121
|
|
|
$
|
28,440
|
|
Deferred income tax expense (benefit)
|
2,000
|
|
|
11,526
|
|
|
(1,849
|
)
|
|||
Deferred income tax (benefit) expense related to remeasurement of deferred taxes
|
(63
|
)
|
|
5,528
|
|
|
—
|
|
|||
Income tax expense, as reported
|
$
|
31,738
|
|
|
$
|
45,175
|
|
|
$
|
26,591
|
|
|
Years ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Income tax expense computed at the statutory rate
|
$
|
33,599
|
|
|
$
|
42,590
|
|
|
$
|
28,046
|
|
Tax-exempt interest income from municipal securities
|
(962
|
)
|
|
(1,357
|
)
|
|
(619
|
)
|
|||
Tax-exempt loan income
|
(490
|
)
|
|
(435
|
)
|
|
(436
|
)
|
|||
Bank owned life insurance income
|
(666
|
)
|
|
(962
|
)
|
|
(472
|
)
|
|||
Non-deductible acquisition expenses
|
142
|
|
|
491
|
|
|
—
|
|
|||
State taxes, net of federal benefit
|
375
|
|
|
241
|
|
|
—
|
|
|||
Net tax benefit from stock based compensation
|
(646
|
)
|
|
(1,323
|
)
|
|
—
|
|
|||
Deferred tax adjustment related to reduction in U.S. Federal statutory income tax rate
|
(63
|
)
|
|
5,528
|
|
|
—
|
|
|||
Other
|
449
|
|
|
402
|
|
|
72
|
|
|||
|
$
|
31,738
|
|
|
$
|
45,175
|
|
|
$
|
26,591
|
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Deferred tax assets:
|
|
|
|
||||
Allowance for loan losses
|
$
|
9,496
|
|
|
$
|
8,365
|
|
NOL and tax credit carryforwards from acquisitions
|
4,810
|
|
|
6,791
|
|
||
Net unrealized loss on available for sale securities
|
2,365
|
|
|
349
|
|
||
Acquired loan fair market value adjustments
|
6,090
|
|
|
5,214
|
|
||
Restricted stock
|
987
|
|
|
791
|
|
||
Reserve for bonuses
|
1,646
|
|
|
479
|
|
||
Deferred loan fees
|
700
|
|
|
545
|
|
||
Securities
|
273
|
|
|
265
|
|
||
Start up costs
|
274
|
|
|
281
|
|
||
Other real estate owned
|
273
|
|
|
402
|
|
||
Unearned bankcard income
|
160
|
|
|
244
|
|
||
Deferred compensation
|
1,266
|
|
|
492
|
|
||
Noncompete agreements
|
552
|
|
|
526
|
|
||
Nonaccrual loans
|
470
|
|
|
414
|
|
||
Other
|
303
|
|
|
310
|
|
||
|
29,665
|
|
|
25,468
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Premises and equipment
|
(5,242
|
)
|
|
(5,128
|
)
|
||
Core deposit intangibles
|
(9,547
|
)
|
|
(9,181
|
)
|
||
Acquired junior subordinated debentures fair value adjustment
|
(777
|
)
|
|
(818
|
)
|
||
FHLB stock
|
(250
|
)
|
|
(204
|
)
|
||
Prepaids
|
(190
|
)
|
|
(153
|
)
|
||
Acquired tax goodwill
|
(232
|
)
|
|
(111
|
)
|
||
Other
|
(247
|
)
|
|
(110
|
)
|
||
|
(16,485
|
)
|
|
(15,705
|
)
|
||
Net deferred tax asset
|
$
|
13,180
|
|
|
$
|
9,763
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Commitments to extend credit
|
|
$
|
1,761,724
|
|
|
$
|
1,286,704
|
|
Standby letters of credit
|
|
14,997
|
|
|
10,532
|
|
||
|
|
$
|
1,776,721
|
|
|
$
|
1,297,236
|
|
First year
|
$
|
3,968
|
|
Second year
|
3,853
|
|
|
Third year
|
3,698
|
|
|
Fourth year
|
3,221
|
|
|
Fifth year
|
2,502
|
|
|
Thereafter
|
7,863
|
|
|
|
$
|
25,105
|
|
Balance at beginning of year
|
$
|
63,916
|
|
New loans
|
26,701
|
|
|
Repayments
|
(9,247
|
)
|
|
Changes in affiliated persons
|
(22,403
|
)
|
|
Balance at end of year
|
$
|
58,967
|
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
|
Assets/
Liabilities
Measured at
Fair Value
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasuries
|
|
$
|
29,643
|
|
|
$
|
—
|
|
|
$
|
29,643
|
|
|
$
|
—
|
|
Government agency securities
|
|
150,230
|
|
|
—
|
|
|
150,230
|
|
|
—
|
|
||||
Obligations of state and municipal subdivisions
|
|
185,007
|
|
|
—
|
|
|
185,007
|
|
|
—
|
|
||||
Residential pass-through securities guaranteed by FNMA, GNMA, and FHLMC
|
|
320,470
|
|
|
—
|
|
|
320,470
|
|
|
—
|
|
||||
Total investment securities available for sale
|
|
$
|
685,350
|
|
|
$
|
—
|
|
|
$
|
685,350
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans held for sale, fair value option elected
(1)
|
|
$
|
27,871
|
|
|
$
|
—
|
|
|
$
|
27,871
|
|
|
$
|
—
|
|
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate lock commitments
|
|
822
|
|
|
—
|
|
|
822
|
|
|
—
|
|
||||
Loan customer counterparty
|
|
360
|
|
|
—
|
|
|
360
|
|
|
—
|
|
||||
Financial institution counterparty
|
|
109
|
|
|
—
|
|
|
109
|
|
|
—
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
||||||||
Forward mortgage-backed securities trades
|
|
226
|
|
|
—
|
|
|
226
|
|
|
—
|
|
||||
Loan customer counterparty
|
|
108
|
|
|
—
|
|
|
108
|
|
|
—
|
|
||||
Financial institution counterparty
|
|
406
|
|
|
—
|
|
|
406
|
|
|
—
|
|
||||
December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasuries
|
|
$
|
37,154
|
|
|
$
|
—
|
|
|
$
|
37,154
|
|
|
$
|
—
|
|
Government agency securities
|
|
211,509
|
|
|
—
|
|
|
211,509
|
|
|
—
|
|
||||
Obligations of state and municipal subdivisions
|
|
229,613
|
|
|
—
|
|
|
229,613
|
|
|
—
|
|
||||
Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC, FHR and GNR
|
|
274,377
|
|
|
—
|
|
|
274,377
|
|
|
—
|
|
||||
Other securities
|
|
10,349
|
|
|
10,349
|
|
|
—
|
|
|
—
|
|
||||
Total investment securities available for sale
|
|
$
|
763,002
|
|
|
$
|
10,349
|
|
|
$
|
752,653
|
|
|
$
|
—
|
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
|
|
||||||||||||||
|
|
Assets/
Liabilities
Measured
at Fair Value
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs (Level 3)
|
|
Period Ended
Total Losses
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impaired loans
|
|
$
|
3,824
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,824
|
|
|
$
|
2,227
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impaired loans
|
|
$
|
7,237
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,237
|
|
|
$
|
3,719
|
|
Other real estate owned
|
|
1,726
|
|
|
—
|
|
|
—
|
|
|
1,726
|
|
|
375
|
|
|
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||||
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
130,779
|
|
|
$
|
130,779
|
|
|
$
|
130,779
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Certificates of deposit held in other banks
|
|
1,225
|
|
|
1,224
|
|
|
—
|
|
|
1,224
|
|
|
—
|
|
|||||
Loans held for sale, at cost
|
|
4,856
|
|
|
4,974
|
|
|
—
|
|
|
4,974
|
|
|
—
|
|
|||||
Loans, net
|
|
7,839,695
|
|
|
7,807,823
|
|
|
—
|
|
|
7,803,999
|
|
|
3,824
|
|
|||||
FHLB of Dallas stock and other restricted stock
|
|
26,870
|
|
|
26,870
|
|
|
—
|
|
|
26,870
|
|
|
—
|
|
|||||
Accrued interest receivable
|
|
24,253
|
|
|
24,253
|
|
|
—
|
|
|
24,253
|
|
|
—
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
7,737,794
|
|
|
7,750,059
|
|
|
—
|
|
|
7,750,059
|
|
|
—
|
|
|||||
Accrued interest payable
|
|
6,183
|
|
|
6,183
|
|
|
—
|
|
|
6,183
|
|
|
—
|
|
|||||
FHLB advances
|
|
290,000
|
|
|
287,450
|
|
|
—
|
|
|
287,450
|
|
|
—
|
|
|||||
Other borrowings
|
|
137,316
|
|
|
138,450
|
|
|
—
|
|
|
138,450
|
|
|
—
|
|
|||||
Junior subordinated debentures
|
|
27,852
|
|
|
31,370
|
|
|
—
|
|
|
31,370
|
|
|
—
|
|
|||||
Off-balance sheet assets (liabilities):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commitments to extend credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Standby letters of credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
431,102
|
|
|
$
|
431,102
|
|
|
$
|
431,102
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Certificates of deposit held in other banks
|
|
12,985
|
|
|
13,049
|
|
|
—
|
|
|
13,049
|
|
|
—
|
|
|||||
Loans held for sale, at cost
|
|
39,202
|
|
|
40,436
|
|
|
—
|
|
|
40,436
|
|
|
—
|
|
|||||
Loans, net
|
|
6,432,273
|
|
|
6,350,416
|
|
|
—
|
|
|
6,343,179
|
|
|
7,237
|
|
|||||
FHLB of Dallas stock and other restricted stock
|
|
29,184
|
|
|
29,184
|
|
|
—
|
|
|
29,184
|
|
|
—
|
|
|||||
Accrued interest receivable
|
|
20,835
|
|
|
20,835
|
|
|
—
|
|
|
20,835
|
|
|
—
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
6,632,822
|
|
|
6,637,813
|
|
|
—
|
|
|
6,637,813
|
|
|
—
|
|
|||||
Accrued interest payable
|
|
4,654
|
|
|
4,654
|
|
|
—
|
|
|
4,654
|
|
|
—
|
|
|||||
FHLB advances
|
|
530,667
|
|
|
526,514
|
|
|
—
|
|
|
526,514
|
|
|
—
|
|
|||||
Other borrowings
|
|
136,911
|
|
|
141,650
|
|
|
—
|
|
|
141,650
|
|
|
—
|
|
|||||
Junior subordinated debentures
|
|
27,654
|
|
|
20,008
|
|
|
—
|
|
|
20,008
|
|
|
—
|
|
|||||
Off-balance sheet assets (liabilities):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commitments to extend credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Standby letters of credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
December 31, 2018
|
||||||||||
|
|
Outstanding Notional Balance
|
|
Asset Derivative
Fair Value
|
|
Liability Derivative
Fair Value
|
||||||
|
|
|
|
|
|
|
||||||
Interest rate lock commitments
|
|
$
|
20,306
|
|
|
$
|
822
|
|
|
$
|
—
|
|
Forward mortgage-backed securities trades
|
|
27,500
|
|
|
—
|
|
|
226
|
|
|||
Commercial loan interest rate swaps:
|
|
|
|
|
|
|
|
|
|
|||
Loan customer counterparty
|
|
25,055
|
|
|
360
|
|
|
108
|
|
|||
Financial institution counterparty
|
|
25,055
|
|
|
109
|
|
|
406
|
|
|
|
Year ended December 31,
|
||
|
|
2018
|
||
Derivatives not designated as hedging instruments
|
|
|
||
Interest rate lock commitments
|
|
$
|
822
|
|
Forward mortgage-backed securities trades
|
|
(226
|
)
|
|
|
Number of
Shares
|
|
Weighted Average
Grant Date
Fair Value
|
|||
Nonvested shares, December 31, 2017
|
|
242,056
|
|
|
$
|
49.17
|
|
Granted during the period
|
|
130,212
|
|
|
71.85
|
|
|
Vested during the period
|
|
(115,520
|
)
|
|
44.36
|
|
|
Forfeited during the period
|
|
(3,845
|
)
|
|
64.47
|
|
|
Nonvested shares, December 31, 2018
|
|
252,903
|
|
|
$
|
62.81
|
|
|
|
|
|
|
|||
Nonvested shares, December 31, 2016
|
|
280,524
|
|
|
$
|
36.88
|
|
Granted during the period
|
|
104,962
|
|
|
61.89
|
|
|
Vested during the period
|
|
(140,887
|
)
|
|
34.18
|
|
|
Forfeited during the period
|
|
(2,543
|
)
|
|
48.29
|
|
|
Nonvested shares, December 31, 2017
|
|
242,056
|
|
|
$
|
49.17
|
|
First year
|
|
108,883
|
|
Second year
|
|
59,344
|
|
Third year
|
|
42,620
|
|
Fourth year
|
|
24,876
|
|
Fifth year
|
|
17,180
|
|
Total nonvested shares
|
|
252,903
|
|
|
|
Actual
|
|
Minimum for Capital
Adequacy Purposes
|
|
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions
|
|||||||||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
|
$
|
1,072,156
|
|
|
12.58
|
%
|
|
$
|
681,686
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank
|
|
1,054,783
|
|
|
12.39
|
|
|
681,004
|
|
|
8.00
|
|
|
$
|
851,255
|
|
|
10.00
|
%
|
||
Tier 1 capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
|
887,354
|
|
|
10.41
|
|
|
511,264
|
|
|
6.00
|
|
|
N/A
|
|
|
N/A
|
|
|||
Bank
|
|
1,009,981
|
|
|
11.86
|
|
|
510,753
|
|
|
6.00
|
|
|
681,004
|
|
|
8.00
|
|
|||
Common equity tier 1 to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
|
856,754
|
|
|
10.05
|
|
|
383,448
|
|
|
4.50
|
|
|
N/A
|
|
|
N/A
|
|
|||
Bank
|
|
1,009,981
|
|
|
11.86
|
|
|
383,065
|
|
|
4.50
|
|
|
553,316
|
|
|
6.50
|
|
|||
Tier 1 capital to average assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
|
887,354
|
|
|
9.57
|
|
|
370,727
|
|
|
4.00
|
|
|
N/A
|
|
|
N/A
|
|
|||
Bank
|
|
1,009,981
|
|
|
10.91
|
|
|
370,412
|
|
|
4.00
|
|
|
463,015
|
|
|
5.00
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
|
$
|
897,760
|
|
|
12.56
|
%
|
|
$
|
572,025
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank
|
|
867,082
|
|
|
12.15
|
|
|
571,142
|
|
|
8.00
|
|
|
$
|
713,928
|
|
|
10.00
|
%
|
||
Tier 1 capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
|
718,358
|
|
|
10.05
|
|
|
429,019
|
|
|
6.00
|
|
|
N/A
|
|
|
N/A
|
|
|||
Bank
|
|
827,680
|
|
|
11.59
|
|
|
428,357
|
|
|
6.00
|
|
|
571,142
|
|
|
8.00
|
|
|||
Common equity tier 1 to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
|
687,006
|
|
|
9.61
|
|
|
321,764
|
|
|
4.50
|
|
|
N/A
|
|
|
N/A
|
|
|||
Bank
|
|
827,680
|
|
|
11.59
|
|
|
321,268
|
|
|
4.50
|
|
|
464,053
|
|
|
6.50
|
|
|||
Tier 1 capital to average assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
|
718,358
|
|
|
8.92
|
|
|
322,124
|
|
|
4.00
|
|
|
N/A
|
|
|
N/A
|
|
|||
Bank
|
|
827,680
|
|
|
10.30
|
|
|
321,384
|
|
|
4.00
|
|
|
401,730
|
|
|
5.00
|
|
|
Initially Recorded at Acquisition Date
|
Measurement Period Adjustments
|
Adjusted Values as of December 31, 2018
|
||||||
Assets of acquired bank:
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
44,723
|
|
$
|
—
|
|
$
|
44,723
|
|
Securities available for sale
|
24,726
|
|
(5
|
)
|
24,721
|
|
|||
Restricted stock
|
3,357
|
|
—
|
|
3,357
|
|
|||
Loans
|
651,722
|
|
47
|
|
651,769
|
|
|||
Premises and equipment
|
4,800
|
|
63
|
|
4,863
|
|
|||
Goodwill
|
100,120
|
|
219
|
|
100,339
|
|
|||
Core deposit intangible
|
7,532
|
|
5
|
|
7,537
|
|
|||
Bank owned life insurance
|
8,181
|
|
—
|
|
8,181
|
|
|||
Other assets
|
6,416
|
|
(31
|
)
|
6,385
|
|
|||
Total assets acquired
|
$
|
851,577
|
|
$
|
298
|
|
$
|
851,875
|
|
|
|
|
|
||||||
Liabilities of acquired bank:
|
|
|
|
||||||
Deposits
|
$
|
593,078
|
|
$
|
—
|
|
$
|
593,078
|
|
FHLB advances
|
60,000
|
|
—
|
|
60,000
|
|
|||
Other liabilities
|
10,220
|
|
298
|
|
10,518
|
|
|||
Total liabilities assumed
|
$
|
663,298
|
|
$
|
298
|
|
$
|
663,596
|
|
Common stock issued at $75.90 per share
|
$
|
157,263
|
|
$
|
—
|
|
$
|
157,263
|
|
Cash paid
|
$
|
31,016
|
|
$
|
—
|
|
$
|
31,016
|
|
|
Final value as reported at December 31, 2017
|
||
Assets of acquired bank:
|
|
||
Cash and cash equivalents
|
$
|
148,444
|
|
Certificates of deposit held in other banks
|
11,025
|
|
|
Securities available for sale
|
336,540
|
|
|
Loans
|
1,384,210
|
|
|
Premises and equipment
|
63,166
|
|
|
Other real estate owned
|
11,212
|
|
|
Goodwill
|
363,139
|
|
|
Core deposit intangible
|
36,717
|
|
|
Other assets
|
89,702
|
|
|
Total assets acquired
|
$
|
2,444,155
|
|
|
|
||
Liabilities of acquired bank:
|
|
||
Deposits
|
$
|
1,825,181
|
|
Junior subordinated debentures
|
9,359
|
|
|
Other liabilities
|
25,700
|
|
|
Total liabilities assumed
|
$
|
1,860,240
|
|
Common stock issued at $64.30 per share
|
$
|
566,142
|
|
Cash paid
|
$
|
17,773
|
|
Balance Sheets
|
|||||||
|
December 31,
|
||||||
Assets
|
2018
|
|
2017
|
||||
Cash and cash equivalents
|
$
|
8,355
|
|
|
$
|
9,400
|
|
Investment in subsidiaries
|
1,764,698
|
|
|
1,484,217
|
|
||
Investment in trusts
|
950
|
|
|
950
|
|
||
Other assets
|
2,189
|
|
|
10,093
|
|
||
Total assets
|
$
|
1,776,192
|
|
|
$
|
1,504,660
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity
|
|
|
|
||||
Other borrowings
|
$
|
137,316
|
|
|
$
|
136,911
|
|
Junior subordinated debentures
|
27,852
|
|
|
27,654
|
|
||
Other liabilities
|
4,591
|
|
|
4,077
|
|
||
Total liabilities
|
169,759
|
|
|
168,642
|
|
||
|
|
|
|
||||
Stockholders' equity:
|
|
|
|
||||
Common stock
|
306
|
|
|
283
|
|
||
Additional paid-in capital
|
1,317,616
|
|
|
1,151,990
|
|
||
Retained earnings
|
296,816
|
|
|
184,232
|
|
||
Accumulated other comprehensive loss
|
(8,305
|
)
|
|
(487
|
)
|
||
Total stockholders' equity
|
1,606,433
|
|
|
1,336,018
|
|
||
Total liabilities and stockholders' equity
|
$
|
1,776,192
|
|
|
$
|
1,504,660
|
|
Statements of Income
|
|||||||||||
|
Years ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Interest expense:
|
|
|
|
|
|
||||||
Interest on other borrowings
|
$
|
8,390
|
|
|
$
|
6,873
|
|
|
$
|
5,426
|
|
Interest on junior subordinated debentures
|
1,609
|
|
|
1,162
|
|
|
621
|
|
|||
Total interest expense
|
9,999
|
|
|
8,035
|
|
|
6,047
|
|
|||
Noninterest income:
|
|
|
|
|
|
||||||
Dividends from subsidiaries
|
39,841
|
|
|
29,563
|
|
|
36,018
|
|
|||
Other
|
14
|
|
|
32
|
|
|
25
|
|
|||
Total noninterest income
|
39,855
|
|
|
29,595
|
|
|
36,043
|
|
|||
Noninterest expense:
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
6,318
|
|
|
5,175
|
|
|
6,226
|
|
|||
Professional fees
|
332
|
|
|
546
|
|
|
523
|
|
|||
Acquisition expense, including legal
|
6,157
|
|
|
12,767
|
|
|
1,380
|
|
|||
Other
|
1,611
|
|
|
1,614
|
|
|
1,126
|
|
|||
Total noninterest expense
|
14,418
|
|
|
20,102
|
|
|
9,255
|
|
|||
Income before income tax benefit and equity in undistributed income of subsidiaries
|
15,438
|
|
|
1,458
|
|
|
20,741
|
|
|||
Income tax benefit
|
5,541
|
|
|
8,890
|
|
|
5,339
|
|
|||
Income before equity in undistributed income of subsidiaries
|
20,979
|
|
|
10,348
|
|
|
26,080
|
|
|||
Equity in undistributed income of subsidiaries
|
107,280
|
|
|
66,164
|
|
|
27,460
|
|
|||
Net income
|
$
|
128,259
|
|
|
$
|
76,512
|
|
|
$
|
53,540
|
|
Statements of Cash Flows
|
|||||||||||
|
Years ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
128,259
|
|
|
$
|
76,512
|
|
|
$
|
53,540
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Equity in undistributed net income of subsidiaries
|
(107,280
|
)
|
|
(66,164
|
)
|
|
(27,460
|
)
|
|||
Amortization of discount and origination costs on borrowings
|
633
|
|
|
505
|
|
|
241
|
|
|||
Stock based compensation expense
|
6,062
|
|
|
4,688
|
|
|
5,431
|
|
|||
Excess tax benefit on restricted stock vested
|
(646
|
)
|
|
(1,323
|
)
|
|
—
|
|
|||
Deferred tax expense (benefit)
|
1,054
|
|
|
11,782
|
|
|
(205
|
)
|
|||
Net change in other assets
|
6,918
|
|
|
(6,750
|
)
|
|
—
|
|
|||
Net change in other liabilities
|
1,130
|
|
|
(1,663
|
)
|
|
1,038
|
|
|||
Net cash provided by operating activities
|
36,130
|
|
|
17,587
|
|
|
32,585
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Capital investment in subsidiaries
|
—
|
|
|
(50,050
|
)
|
|
(57,000
|
)
|
|||
Cash received from acquired bank
|
7,425
|
|
|
5,418
|
|
|
—
|
|
|||
Cash paid in connection with acquisition
|
(31,016
|
)
|
|
(17,773
|
)
|
|
—
|
|
|||
Net cash used in investing activities
|
(23,591
|
)
|
|
(62,405
|
)
|
|
(57,000
|
)
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Repayments of other borrowings
|
—
|
|
|
—
|
|
|
(5,798
|
)
|
|||
Proceeds from other borrowings, net of issuance costs
|
—
|
|
|
29,255
|
|
|
43,150
|
|
|||
Proceeds from exercise of common stock warrants
|
2,533
|
|
|
55
|
|
|
—
|
|
|||
Offering costs paid in connection with acquired bank
|
(209
|
)
|
|
(942
|
)
|
|
—
|
|
|||
Proceeds from sale of common stock, net
|
—
|
|
|
26,816
|
|
|
19,929
|
|
|||
Redemption of preferred stock
|
—
|
|
|
—
|
|
|
(23,938
|
)
|
|||
Dividends paid
|
(15,908
|
)
|
|
(10,231
|
)
|
|
(6,287
|
)
|
|||
Net cash (used in) provided by financing activities
|
(13,584
|
)
|
|
44,953
|
|
|
27,056
|
|
|||
Net change in cash and cash equivalents
|
(1,045
|
)
|
|
135
|
|
|
2,641
|
|
|||
Cash and cash equivalents at beginning of year
|
9,400
|
|
|
9,265
|
|
|
6,624
|
|
|||
Cash and cash equivalents at end of year
|
$
|
8,355
|
|
|
$
|
9,400
|
|
|
$
|
9,265
|
|
Assets of acquired bank:
|
|
||
Cash and cash equivalents
|
$
|
40,175
|
|
Securities
|
561,158
|
|
|
Restricted stock
|
27,688
|
|
|
Loans
|
2,790,026
|
|
|
Premises and equipment
|
68,819
|
|
|
Goodwill
|
267,169
|
|
|
Core deposit and customer relationship intangibles
|
71,752
|
|
|
Bank owned life insurance
|
80,837
|
|
|
Other assets
|
30,813
|
|
|
Total assets acquired
|
$
|
3,938,437
|
|
|
|
||
Liabilities of acquired bank:
|
|
||
Deposits
|
$
|
3,108,810
|
|
FHLB advances
|
142,653
|
|
|
Subordinated debentures
|
65,774
|
|
|
Other liabilities
|
19,319
|
|
|
Total liabilities assumed
|
$
|
3,336,556
|
|
Common stock of 13,109,500 issued at $45.77 per share
|
$
|
600,022
|
|
Consideration attributable to 70,248 shares of restricted stock replacement awards
|
$
|
1,850
|
|
Cash paid
|
$
|
9
|
|
|
|
|
Independent Bank Group, Inc. (Registrant)
|
|
|
|
|
Date:
|
February 28, 2019
|
|
By: /s/ David R. Brooks
|
|
|
|
|
|
|
|
David R. Brooks
|
|
|
|
Chairman, President and Chief Executive Officer
|
Signature
|
Title
|
Date
|
/s/ David R. Brooks
|
Chairman, Chief Executive Officer, President, and Director (Principal Executive Officer)
|
February 28, 2019
|
David R. Brooks
|
|
|
|
|
|
/s/ Michelle S. Hickox
|
Executive Vice President and Chief Financial Officer (Principal Financial and Principal Accounting Officer)
|
February 28, 2019
|
Michelle S. Hickox
|
|
|
|
|
|
/s/ Daniel W. Brooks
|
Vice Chairman, Chief Risk Officer and Director
|
February 28, 2019
|
Daniel W. Brooks
|
|
|
|
|
|
/s/ Douglas A. Cifu
|
Director
|
February 28, 2019
|
Douglas A. Cifu
|
|
|
|
|
|
/s/ Paul W. Taylor
|
Director
|
February 28, 2019
|
Paul W. Taylor
|
|
|
|
|
|
/s/ William E. Fair
|
Director
|
February 28, 2019
|
William E. Fair
|
|
|
|
|
|
/s/ Mark K. Gormley
|
Director
|
February 28, 2019
|
Mark K. Gormley
|
|
|
|
|
|
/s/ Craig E. Holmes
|
Director
|
February 28, 2019
|
Craig E. Holmes
|
|
|
|
|
|
/s/ J. Webb Jennings III
|
Director
|
February 28, 2019
|
J. Webb Jennings III
|
|
|
|
|
|
/s/ Tom C. Nichols
|
Director
|
February 28, 2019
|
Tom C. Nichols
|
|
|
|
|
|
/s/ Donald L. Poarch
|
Director
|
February 28, 2019
|
Donald L. Poarch
|
|
|
|
|
|
/s/ G. Stacy Smith
|
Director
|
February 28, 2019
|
G. Stacy Smith
|
|
|
|
|
|
/s/ Michael T. Viola
|
Director
|
February 28, 2019
|
Michael T. Viola
|
|
|
Name of Merging Party
|
Entity Type
|
State of Organization
|
Texas SOS Filing Number
|
Surviving Entity
|
Independent Bank Group, Inc.
|
For profit corporation
|
Texas
|
800125042
|
Yes
|
Guaranty Bancorp
|
For profit corporation
|
Colorado
|
N/A
|
No
|
INDEPENDENT BANK GROUP, INC.
|
|
GUARANTY BANCORP
|
By:
/s/ David R. Brooks
|
|
By:
/s/ Paul W. Taylor
|
David R. Brooks
Chairman of the Board and CEO |
|
Paul W. Taylor
Chairman of the Board and CEO
|
|
Name
|
State of Incorporation
|
Parent:
|
Independent Bank Group, Inc.
|
Texas
|
Banking Subsidiary:
|
Independent Bank
|
Texas
|
Nonbanking Subsidiaries:
|
IBG Adriatica Holdings, Inc.
|
Texas
|
|
Carlile Capital, LLC
|
Texas
|
|
IBG Real Estate Holdings, Inc.
|
Texas
|
|
IBG Real Estate Holdings II, Inc.
|
Texas
|
|
IBG Aircraft Company III
|
Texas
|
|
Preston Grand, Inc.
|
Texas
|
|
CFRH II, LLC
|
Colorado
|
|
McKinney Avenue Holdings, Inc.
|
Texas
|
|
McKinney Avenue, SPE 1, Inc.
|
Texas
|
|
Private Capital Management, LLC
|
Colorado
|
|
IB Trust I
|
Delaware
|
|
IB Trust II
|
Delaware
|
|
IB Trust III
|
Delaware
|
|
IB Centex Trust I
|
Delaware
|
|
Community Group Statutory Trust I
|
Delaware
|
|
Northstar Statutory Trust II
|
Delaware
|
|
Northstar Statutory Trust III
|
Delaware
|
|
Cenbank Statutory Trust III
|
Delaware
|
|
Guaranty Capital Trust III
|
Delaware
|
1.
|
I have reviewed this Annual Report on Form 10-K (the “Report”) of Independent Bank Group, Inc. (the “registrant”);
|
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 related to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and
|
(d)
|
disclosed in this Report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
February 28, 2019
|
/s/ David R. Brooks
|
|
|
David R. Brooks
Chairman, Chief Executive Officer and President
|
1.
|
I have reviewed this Annual Report on Form 10-K (the “Report”) of Independent Bank Group, Inc. (the “registrant”);
|
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 related to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
disclosed in this Report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
February 28, 2019
|
/s/ Michelle S. Hickox
|
|
|
Michelle S. Hickox
Executive Vice President and Chief Financial Officer
|
|
/s/ David R. Brooks
|
|
David R. Brooks
|
Chairman, Chief Executive Officer and President
|
/s/ Michelle S. Hickox
|
|
Michelle S. Hickox
|
Executive Vice President and Chief Financial Officer
|