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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Southside Bancshares Inc | NASDAQ:SBSI | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 28.02 | 26.00 | 44.55 | 0 | 09:09:56 |
|
|
|
|
|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Texas
|
|
|
75-1848732
|
||
(State or other jurisdiction of
incorporation or organization)
|
|
|
(I.R.S. Employer
Identification No.)
|
||
|
|
|
|
|
|
1201 S. Beckham Avenue,
|
Tyler,
|
Texas
|
|
|
75701
|
(Address of principal executive offices)
|
|
|
(Zip Code)
|
Title of each class
|
|
Trading Symbol
|
|
Name of each exchange on which registered
|
|
Common Stock, $1.25 par value
|
|
SBSI
|
|
NASDAQ Global Select Market
|
|
PART I. FINANCIAL INFORMATION
|
|
PART II. OTHER INFORMATION
|
|
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share amounts) |
||||||||
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
|
|||||||
ASSETS
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
77,319
|
|
|
$
|
87,375
|
|
Interest earning deposits
|
|
54,642
|
|
|
23,884
|
|
||
Federal funds sold
|
|
560
|
|
|
9,460
|
|
||
Total cash and cash equivalents
|
|
132,521
|
|
|
120,719
|
|
||
Securities:
|
|
|
|
|
||||
Securities available for sale, at estimated fair value
|
|
2,088,787
|
|
|
1,989,436
|
|
||
Securities held to maturity, at carrying value (estimated fair value of $151,307 and $159,781, respectively)
|
|
147,091
|
|
|
162,931
|
|
||
Federal Home Loan Bank stock, at cost
|
|
44,718
|
|
|
32,583
|
|
||
Equity investments
|
|
12,374
|
|
|
12,093
|
|
||
Loans held for sale
|
|
1,812
|
|
|
601
|
|
||
Loans:
|
|
|
|
|
|
|
||
Loans
|
|
3,460,143
|
|
|
3,312,799
|
|
||
Less: Allowance for loan losses
|
|
(24,705
|
)
|
|
(27,019
|
)
|
||
Net loans
|
|
3,435,438
|
|
|
3,285,780
|
|
||
Premises and equipment, net
|
|
140,105
|
|
|
135,972
|
|
||
Operating lease right-of-use assets
|
|
9,812
|
|
|
—
|
|
||
Goodwill
|
|
201,116
|
|
|
201,116
|
|
||
Other intangible assets, net
|
|
15,471
|
|
|
17,779
|
|
||
Interest receivable
|
|
25,167
|
|
|
27,287
|
|
||
Deferred tax asset, net
|
|
—
|
|
|
9,776
|
|
||
Unsettled issuances of brokered certificates of deposit
|
|
—
|
|
|
15,236
|
|
||
Bank owned life insurance
|
|
99,294
|
|
|
98,160
|
|
||
Other assets
|
|
19,164
|
|
|
14,025
|
|
||
Total assets
|
|
$
|
6,372,870
|
|
|
$
|
6,123,494
|
|
|
|
|
|
|
|
|
||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
Deposits:
|
|
|
|
|
|
|
||
Noninterest bearing
|
|
$
|
1,028,861
|
|
|
$
|
994,680
|
|
Interest bearing
|
|
3,450,395
|
|
|
3,430,350
|
|
||
Total deposits
|
|
4,479,256
|
|
|
4,425,030
|
|
||
Other borrowings
|
|
26,064
|
|
|
36,810
|
|
||
Federal Home Loan Bank borrowings
|
|
823,757
|
|
|
719,065
|
|
||
Subordinated notes, net of unamortized debt issuance costs
|
|
98,490
|
|
|
98,407
|
|
||
Trust preferred subordinated debentures, net of unamortized debt issuance costs
|
|
60,248
|
|
|
60,246
|
|
||
Deferred tax liability, net
|
|
5,029
|
|
|
—
|
|
||
Unsettled trades to purchase securities
|
|
38,569
|
|
|
6,378
|
|
||
Operating lease liabilities
|
|
10,204
|
|
|
—
|
|
||
Other liabilities
|
|
43,488
|
|
|
46,267
|
|
||
Total liabilities
|
|
5,585,105
|
|
|
5,392,203
|
|
||
|
|
|
|
|
|
|
||
Off-balance-sheet arrangements, commitments and contingencies (Note 14)
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|||
Shareholders’ equity:
|
|
|
|
|
|
|
||
Common stock: ($1.25 par value, 80,000,000 shares authorized, 37,866,359 shares issued at June 30, 2019 and 37,845,224 shares issued at December 31, 2018)
|
|
47,333
|
|
|
47,307
|
|
||
Paid-in capital
|
|
764,220
|
|
|
762,470
|
|
||
Retained earnings
|
|
65,183
|
|
|
64,797
|
|
||
Treasury stock: (shares at cost, 4,117,595 at June 30, 2019 and 4,120,475 at December 31, 2018)
|
|
(93,906
|
)
|
|
(93,055
|
)
|
||
Accumulated other comprehensive income (loss)
|
|
4,935
|
|
|
(50,228
|
)
|
||
Total shareholders’ equity
|
|
787,765
|
|
|
731,291
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
6,372,870
|
|
|
$
|
6,123,494
|
|
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in thousands, except per share data)
|
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest income:
|
|
|
|
|
|
|
|
||||||||
Loans
|
$
|
42,982
|
|
|
$
|
39,301
|
|
|
$
|
84,601
|
|
|
$
|
78,131
|
|
Taxable investment securities
|
27
|
|
|
51
|
|
|
55
|
|
|
278
|
|
||||
Tax-exempt investment securities
|
3,527
|
|
|
6,353
|
|
|
7,645
|
|
|
12,734
|
|
||||
Mortgage-backed securities
|
13,246
|
|
|
10,210
|
|
|
25,720
|
|
|
21,104
|
|
||||
Federal Home Loan Bank stock and equity investments
|
440
|
|
|
411
|
|
|
795
|
|
|
825
|
|
||||
Other interest earning assets
|
450
|
|
|
471
|
|
|
883
|
|
|
919
|
|
||||
Total interest income
|
60,672
|
|
|
56,797
|
|
|
119,699
|
|
|
113,991
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits
|
11,457
|
|
|
8,581
|
|
|
22,698
|
|
|
16,032
|
|
||||
Federal Home Loan Bank borrowings
|
3,899
|
|
|
3,007
|
|
|
8,356
|
|
|
6,639
|
|
||||
Subordinated notes
|
1,410
|
|
|
1,407
|
|
|
2,810
|
|
|
2,805
|
|
||||
Trust preferred subordinated debentures
|
718
|
|
|
658
|
|
|
1,447
|
|
|
1,227
|
|
||||
Other borrowings
|
57
|
|
|
33
|
|
|
132
|
|
|
44
|
|
||||
Total interest expense
|
17,541
|
|
|
13,686
|
|
|
35,443
|
|
|
26,747
|
|
||||
Net interest income
|
43,131
|
|
|
43,111
|
|
|
84,256
|
|
|
87,244
|
|
||||
Provision for loan losses
|
2,506
|
|
|
1,281
|
|
|
1,588
|
|
|
5,016
|
|
||||
Net interest income after provision for loan losses
|
40,625
|
|
|
41,830
|
|
|
82,668
|
|
|
82,228
|
|
||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposit services
|
6,652
|
|
|
6,261
|
|
|
12,638
|
|
|
12,440
|
|
||||
Net gain (loss) on sale of securities available for sale
|
416
|
|
|
(332
|
)
|
|
672
|
|
|
(1,159
|
)
|
||||
Gain on sale of loans
|
181
|
|
|
173
|
|
|
274
|
|
|
288
|
|
||||
Trust fees
|
1,520
|
|
|
1,931
|
|
|
3,061
|
|
|
3,691
|
|
||||
Bank owned life insurance
|
559
|
|
|
1,185
|
|
|
1,103
|
|
|
1,817
|
|
||||
Brokerage services
|
477
|
|
|
506
|
|
|
994
|
|
|
956
|
|
||||
Other
|
1,449
|
|
|
1,283
|
|
|
2,050
|
|
|
2,584
|
|
||||
Total noninterest income
|
11,254
|
|
|
11,007
|
|
|
20,792
|
|
|
20,617
|
|
||||
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Salaries and employee benefits
|
17,891
|
|
|
16,633
|
|
|
35,937
|
|
|
35,192
|
|
||||
Net occupancy
|
3,289
|
|
|
3,360
|
|
|
6,464
|
|
|
6,943
|
|
||||
Acquisition expense
|
—
|
|
|
1,026
|
|
|
—
|
|
|
1,858
|
|
||||
Advertising, travel & entertainment
|
733
|
|
|
775
|
|
|
1,580
|
|
|
1,460
|
|
||||
ATM expense
|
246
|
|
|
243
|
|
|
426
|
|
|
589
|
|
||||
Professional fees
|
1,069
|
|
|
952
|
|
|
2,383
|
|
|
2,022
|
|
||||
Software and data processing
|
1,086
|
|
|
939
|
|
|
2,162
|
|
|
1,962
|
|
||||
Communications
|
489
|
|
|
478
|
|
|
976
|
|
|
1,016
|
|
||||
FDIC insurance
|
437
|
|
|
484
|
|
|
859
|
|
|
981
|
|
||||
Amortization of intangibles
|
1,129
|
|
|
1,328
|
|
|
2,308
|
|
|
2,706
|
|
||||
Other
|
3,331
|
|
|
3,056
|
|
|
6,232
|
|
|
6,212
|
|
||||
Total noninterest expense
|
29,700
|
|
|
29,274
|
|
|
59,327
|
|
|
60,941
|
|
||||
Income before income tax expense
|
22,179
|
|
|
23,563
|
|
|
44,133
|
|
|
41,904
|
|
||||
Income tax expense
|
3,569
|
|
|
3,360
|
|
|
6,706
|
|
|
5,450
|
|
||||
Net income
|
$
|
18,610
|
|
|
$
|
20,203
|
|
|
$
|
37,427
|
|
|
$
|
36,454
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share – basic
|
$
|
0.55
|
|
|
$
|
0.58
|
|
|
$
|
1.11
|
|
|
$
|
1.04
|
|
Earnings per common share – diluted
|
$
|
0.55
|
|
|
$
|
0.57
|
|
|
$
|
1.11
|
|
|
$
|
1.04
|
|
Cash dividends paid per common share
|
$
|
0.31
|
|
|
$
|
0.30
|
|
|
$
|
0.61
|
|
|
$
|
0.58
|
|
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands)
|
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
18,610
|
|
|
$
|
20,203
|
|
|
$
|
37,427
|
|
|
$
|
36,454
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||
Securities available for sale and transferred securities:
|
|
|
|
|
|
|
|
||||||||
Change in unrealized holding gain (loss) on available for sale securities during the period
|
32,196
|
|
|
(10,371
|
)
|
|
78,822
|
|
|
(48,154
|
)
|
||||
Unrealized net gain on securities transferred from held to maturity to available for sale under the transition guidance enumerated in ASU 2017-12
|
—
|
|
|
—
|
|
|
—
|
|
|
11,881
|
|
||||
Change in net unrealized loss on securities transferred from held to maturity to available for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
401
|
|
||||
Reclassification adjustment for amortization related to available for sale and held to maturity debt securities
|
80
|
|
|
1,252
|
|
|
571
|
|
|
1,390
|
|
||||
Reclassification adjustment for net (gain) loss on sale of available for sale securities, included in net income
|
(416
|
)
|
|
332
|
|
|
(672
|
)
|
|
1,159
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Change in net unrealized (loss) gain on effective cash flow hedge interest rate swap derivatives
|
(5,653
|
)
|
|
1,725
|
|
|
(8,773
|
)
|
|
5,970
|
|
||||
Reclassification adjustment of net gain related to derivatives designated as cash flow hedge
|
(642
|
)
|
|
(331
|
)
|
|
(1,310
|
)
|
|
(458
|
)
|
||||
Pension plans:
|
|
|
|
|
|
|
|
||||||||
Amortization of net actuarial loss and prior service credit, included in net periodic benefit cost
|
648
|
|
|
618
|
|
|
1,189
|
|
|
1,091
|
|
||||
Other comprehensive income (loss), before tax
|
26,213
|
|
|
(6,775
|
)
|
|
69,827
|
|
|
(26,720
|
)
|
||||
Income tax (expense) benefit related to items of other comprehensive income (loss)
|
(5,505
|
)
|
|
1,423
|
|
|
(14,664
|
)
|
|
5,611
|
|
||||
Other comprehensive income (loss), net of tax
|
20,708
|
|
|
(5,352
|
)
|
|
55,163
|
|
|
(21,109
|
)
|
||||
Comprehensive income
|
$
|
39,318
|
|
|
$
|
14,851
|
|
|
$
|
92,590
|
|
|
$
|
15,345
|
|
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(UNAUDITED)
(in thousands, except share and per share data)
|
|||||||||||||||||||||||
|
Common
Stock
|
|
Paid In
Capital
|
|
Retained
Earnings
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Shareholders’
Equity
|
||||||||||||
Balance at December 31, 2017
|
$
|
47,253
|
|
|
$
|
757,439
|
|
|
$
|
32,851
|
|
|
$
|
(47,105
|
)
|
|
$
|
(36,298
|
)
|
|
$
|
754,140
|
|
Cumulative effect of accounting change
|
—
|
|
|
—
|
|
|
(85
|
)
|
|
—
|
|
|
85
|
|
|
—
|
|
||||||
Adjusted beginning balance
|
47,253
|
|
|
757,439
|
|
|
32,766
|
|
|
(47,105
|
)
|
|
(36,213
|
)
|
|
754,140
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
16,251
|
|
|
—
|
|
|
—
|
|
|
16,251
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,757
|
)
|
|
(15,757
|
)
|
||||||
Issuance of common stock for dividend reinvestment plan (10,035 shares)
|
12
|
|
|
341
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
353
|
|
||||||
Stock compensation expense
|
—
|
|
|
456
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
456
|
|
||||||
Net issuance of common stock under employee stock plans (42,179 shares)
|
—
|
|
|
417
|
|
|
(25
|
)
|
|
369
|
|
|
—
|
|
|
761
|
|
||||||
Cash dividends paid on common stock ($0.28 per share)
|
—
|
|
|
—
|
|
|
(9,808
|
)
|
|
—
|
|
|
—
|
|
|
(9,808
|
)
|
||||||
Balance at March 31, 2018
|
47,265
|
|
|
758,653
|
|
|
39,184
|
|
|
(46,736
|
)
|
|
(51,970
|
)
|
|
746,396
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
20,203
|
|
|
—
|
|
|
—
|
|
|
20,203
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,352
|
)
|
|
(5,352
|
)
|
||||||
Issuance of common stock for dividend reinvestment plan (10,397 shares)
|
13
|
|
|
354
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
367
|
|
||||||
Stock compensation expense
|
—
|
|
|
509
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
509
|
|
||||||
Net issuance of common stock under employee stock plans (20,872 shares)
|
—
|
|
|
46
|
|
|
(27
|
)
|
|
185
|
|
|
—
|
|
|
204
|
|
||||||
Cash dividends paid on common stock ($0.30 per share)
|
—
|
|
|
—
|
|
|
(10,517
|
)
|
|
—
|
|
|
—
|
|
|
(10,517
|
)
|
||||||
Balance at June 30, 2018
|
$
|
47,278
|
|
|
$
|
759,562
|
|
|
$
|
48,843
|
|
|
$
|
(46,551
|
)
|
|
$
|
(57,322
|
)
|
|
$
|
751,810
|
|
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(UNAUDITED) (continued)
(in thousands, except share and per share data)
|
|||||||||||||||||||||||
|
Common
Stock
|
|
Paid In
Capital
|
|
Retained
Earnings
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Shareholders’
Equity
|
||||||||||||
Balance at December 31, 2018
|
$
|
47,307
|
|
|
$
|
762,470
|
|
|
$
|
64,797
|
|
|
$
|
(93,055
|
)
|
|
$
|
(50,228
|
)
|
|
$
|
731,291
|
|
Cumulative effect of accounting change
|
—
|
|
|
—
|
|
|
(16,452
|
)
|
|
—
|
|
|
—
|
|
|
(16,452
|
)
|
||||||
Adjusted beginning balance
|
47,307
|
|
|
762,470
|
|
|
48,345
|
|
|
(93,055
|
)
|
|
(50,228
|
)
|
|
714,839
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
18,817
|
|
|
—
|
|
|
—
|
|
|
18,817
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,455
|
|
|
34,455
|
|
||||||
Issuance of common stock for dividend reinvestment plan (10,565 shares)
|
13
|
|
|
342
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
355
|
|
||||||
Purchase of common stock (40,852 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,325
|
)
|
|
—
|
|
|
(1,325
|
)
|
||||||
Stock compensation expense
|
—
|
|
|
661
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
661
|
|
||||||
Net issuance of common stock under employee stock plans (23,617 shares)
|
—
|
|
|
109
|
|
|
(32
|
)
|
|
261
|
|
|
—
|
|
|
338
|
|
||||||
Cash dividends paid on common stock ($0.30 per share)
|
—
|
|
|
—
|
|
|
(10,107
|
)
|
|
—
|
|
|
—
|
|
|
(10,107
|
)
|
||||||
Balance at March 31, 2019
|
47,320
|
|
|
763,582
|
|
|
57,023
|
|
|
(94,119
|
)
|
|
(15,773
|
)
|
|
758,033
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
18,610
|
|
|
—
|
|
|
—
|
|
|
18,610
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,708
|
|
|
20,708
|
|
||||||
Issuance of common stock for dividend reinvestment plan (10,570 shares)
|
13
|
|
|
336
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
349
|
|
||||||
Stock compensation expense
|
—
|
|
|
571
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
571
|
|
||||||
Net issuance of common stock under employee stock plans (20,115 shares)
|
—
|
|
|
(269
|
)
|
|
3
|
|
|
213
|
|
|
—
|
|
|
(53
|
)
|
||||||
Cash dividends paid on common stock ($0.31 per share)
|
—
|
|
|
—
|
|
|
(10,453
|
)
|
|
—
|
|
|
—
|
|
|
(10,453
|
)
|
||||||
Balance at June 30, 2019
|
$
|
47,333
|
|
|
$
|
764,220
|
|
|
$
|
65,183
|
|
|
$
|
(93,906
|
)
|
|
$
|
4,935
|
|
|
$
|
787,765
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Basic and Diluted Earnings:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
18,610
|
|
|
$
|
20,203
|
|
|
$
|
37,427
|
|
|
$
|
36,454
|
|
Basic weighted-average shares outstanding
|
33,726
|
|
|
35,062
|
|
|
33,711
|
|
|
35,042
|
|
||||
Add: Stock awards
|
150
|
|
|
171
|
|
|
151
|
|
|
175
|
|
||||
Diluted weighted-average shares outstanding
|
33,876
|
|
|
35,233
|
|
|
33,862
|
|
|
35,217
|
|
||||
Basic earnings per share:
|
|
|
|
|
|
|
|
||||||||
Net Income
|
$
|
0.55
|
|
|
$
|
0.58
|
|
|
$
|
1.11
|
|
|
$
|
1.04
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
||||||||
Net Income
|
$
|
0.55
|
|
|
$
|
0.57
|
|
|
$
|
1.11
|
|
|
$
|
1.04
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||
|
|
|
|
Pension Plans
|
|
|
|||||||||||||
|
Unrealized Gains (Losses) on Securities
|
|
Unrealized Gains (Losses) on Derivatives
|
|
Net Prior
Service
(Cost)
Credit
|
|
Net Gain (Loss)
|
|
Total
|
||||||||||
Beginning balance, net of tax
|
$
|
5,901
|
|
|
$
|
4,153
|
|
|
$
|
(140
|
)
|
|
$
|
(25,687
|
)
|
|
$
|
(15,773
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss) before reclassifications
|
32,196
|
|
|
(5,653
|
)
|
|
—
|
|
|
—
|
|
|
26,543
|
|
|||||
Reclassification adjustments included in net income
|
(336
|
)
|
|
(642
|
)
|
|
(3
|
)
|
|
651
|
|
|
(330
|
)
|
|||||
Income tax (expense) benefit
|
(6,691
|
)
|
|
1,322
|
|
|
1
|
|
|
(137
|
)
|
|
(5,505
|
)
|
|||||
Net current-period other comprehensive income (loss), net of tax
|
25,169
|
|
|
(4,973
|
)
|
|
(2
|
)
|
|
514
|
|
|
20,708
|
|
|||||
Ending balance, net of tax
|
$
|
31,070
|
|
|
$
|
(820
|
)
|
|
$
|
(142
|
)
|
|
$
|
(25,173
|
)
|
|
$
|
4,935
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Six Months Ended June 30, 2019
|
||||||||||||||||||
|
|
|
|
Pension Plans
|
|
|
|||||||||||||
|
Unrealized Gains (Losses) on Securities
|
|
Unrealized Gains (Losses) on Derivatives
|
|
Net Prior
Service (Cost) Credit |
|
Net Gain (Loss)
|
|
Total
|
||||||||||
Beginning balance, net of tax
|
$
|
(31,120
|
)
|
|
$
|
7,146
|
|
|
$
|
(139
|
)
|
|
$
|
(26,115
|
)
|
|
$
|
(50,228
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss) before reclassifications
|
78,822
|
|
|
(8,773
|
)
|
|
—
|
|
|
—
|
|
|
70,049
|
|
|||||
Reclassification adjustments included in net income
|
(101
|
)
|
|
(1,310
|
)
|
|
(4
|
)
|
|
1,193
|
|
|
(222
|
)
|
|||||
Income tax (expense) benefit
|
(16,531
|
)
|
|
2,117
|
|
|
1
|
|
|
(251
|
)
|
|
(14,664
|
)
|
|||||
Net current-period other comprehensive income (loss), net of tax
|
62,190
|
|
|
(7,966
|
)
|
|
(3
|
)
|
|
942
|
|
|
55,163
|
|
|||||
Ending balance, net of tax
|
$
|
31,070
|
|
|
$
|
(820
|
)
|
|
$
|
(142
|
)
|
|
$
|
(25,173
|
)
|
|
$
|
4,935
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
|
|
|
|
Pension Plans
|
|
|
|||||||||||||
|
Unrealized Gains (Losses) on Securities
|
|
Unrealized Gains (Losses) on Derivatives
|
|
Net Prior
Service
(Cost)
Credit
|
|
Net Gain (Loss)
|
|
Total
|
||||||||||
Beginning balance, net of tax
|
$
|
(35,594
|
)
|
|
$
|
9,652
|
|
|
$
|
(134
|
)
|
|
$
|
(25,894
|
)
|
|
$
|
(51,970
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive (loss) income before reclassifications
|
(10,371
|
)
|
|
1,725
|
|
|
—
|
|
|
—
|
|
|
(8,646
|
)
|
|||||
Reclassification adjustments included in net income
|
1,584
|
|
|
(331
|
)
|
|
(2
|
)
|
|
620
|
|
|
1,871
|
|
|||||
Income tax benefit (expense)
|
1,845
|
|
|
(293
|
)
|
|
1
|
|
|
(130
|
)
|
|
1,423
|
|
|||||
Net current-period other comprehensive (loss) income, net of tax
|
(6,942
|
)
|
|
1,101
|
|
|
(1
|
)
|
|
490
|
|
|
(5,352
|
)
|
|||||
Ending balance, net of tax
|
$
|
(42,536
|
)
|
|
$
|
10,753
|
|
|
$
|
(135
|
)
|
|
$
|
(25,404
|
)
|
|
$
|
(57,322
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
|
|
|
|
Pension Plans
|
|
|
|||||||||||||
|
Unrealized Gains (Losses) on Securities
|
|
Unrealized Gains (Losses) on Derivatives
|
|
Net Prior
Service
(Cost)
Credit
|
|
Net Gain (Loss)
|
|
Total
|
||||||||||
Beginning balance, net of tax
|
$
|
(16,295
|
)
|
|
$
|
6,399
|
|
|
$
|
(133
|
)
|
|
$
|
(26,269
|
)
|
|
$
|
(36,298
|
)
|
Cumulative effect of ASU 2016-01
(1)
|
85
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85
|
|
|||||
Adjusted beginning balance, net of tax
|
(16,210
|
)
|
|
6,399
|
|
|
(133
|
)
|
|
(26,269
|
)
|
|
(36,213
|
)
|
|||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive (loss) income before reclassifications
|
(35,872
|
)
|
|
5,970
|
|
|
—
|
|
|
—
|
|
|
(29,902
|
)
|
|||||
Reclassification adjustments included in net income
|
2,549
|
|
|
(458
|
)
|
|
(4
|
)
|
|
1,095
|
|
|
3,182
|
|
|||||
Income tax benefit (expense)
|
6,997
|
|
|
(1,158
|
)
|
|
2
|
|
|
(230
|
)
|
|
5,611
|
|
|||||
Net current-period other comprehensive (loss) income, net of tax
|
(26,326
|
)
|
|
4,354
|
|
|
(2
|
)
|
|
865
|
|
|
(21,109
|
)
|
|||||
Ending balance, net of tax
|
$
|
(42,536
|
)
|
|
$
|
10,753
|
|
|
$
|
(135
|
)
|
|
$
|
(25,404
|
)
|
|
$
|
(57,322
|
)
|
(1)
|
The Company adopted ASU 2016-01 on January 1, 2018. This amount includes a reclassification for the cumulative adjustment to retained earnings of
$107,000
(
$85,000
, net of tax).
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Unrealized losses on securities transferred:
|
|
|
|
|
|
|
|
||||||||
Amortization of unrealized losses
(1)
|
$
|
(80
|
)
|
|
$
|
(1,252
|
)
|
|
$
|
(571
|
)
|
|
$
|
(1,390
|
)
|
Tax benefit
|
17
|
|
|
263
|
|
|
120
|
|
|
292
|
|
||||
Net of tax
|
(63
|
)
|
|
(989
|
)
|
|
(451
|
)
|
|
(1,098
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Unrealized gains and losses on available for sale securities:
|
|
|
|
|
|
|
|
||||||||
Realized net gain (loss) on sale of securities
(2)
|
416
|
|
|
(332
|
)
|
|
672
|
|
|
(1,159
|
)
|
||||
Tax (expense) benefit
|
(87
|
)
|
|
70
|
|
|
(141
|
)
|
|
243
|
|
||||
Net of tax
|
329
|
|
|
(262
|
)
|
|
531
|
|
|
(916
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Realized net gain on interest rate swap derivatives
(3)
|
621
|
|
|
309
|
|
|
1,267
|
|
|
415
|
|
||||
Tax expense
|
(130
|
)
|
|
(65
|
)
|
|
(266
|
)
|
|
(87
|
)
|
||||
Net of tax
|
491
|
|
|
244
|
|
|
1,001
|
|
|
328
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Amortization of unrealized gains on terminated interest rate swap derivatives
(3)
|
21
|
|
|
22
|
|
|
43
|
|
|
43
|
|
||||
Tax expense
|
(4
|
)
|
|
(5
|
)
|
|
(9
|
)
|
|
(9
|
)
|
||||
Net of tax
|
17
|
|
|
17
|
|
|
34
|
|
|
34
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Amortization of pension plan:
|
|
|
|
|
|
|
|
||||||||
Net actuarial loss
(4)
|
(651
|
)
|
|
(620
|
)
|
|
(1,193
|
)
|
|
(1,095
|
)
|
||||
Prior service credit
(4)
|
3
|
|
|
2
|
|
|
4
|
|
|
4
|
|
||||
Total before tax
|
(648
|
)
|
|
(618
|
)
|
|
(1,189
|
)
|
|
(1,091
|
)
|
||||
Tax benefit
|
136
|
|
|
129
|
|
|
250
|
|
|
228
|
|
||||
Net of tax
|
(512
|
)
|
|
(489
|
)
|
|
(939
|
)
|
|
(863
|
)
|
||||
Total reclassifications for the period, net of tax
|
$
|
262
|
|
|
$
|
(1,479
|
)
|
|
$
|
176
|
|
|
$
|
(2,515
|
)
|
(3)
|
Included in interest expense for
Federal Home Loan Bank of Dallas (“FHLB”)
borrowings on the consolidated statements of income.
|
(4)
|
These accumulated other comprehensive income components are included in the computation of net periodic pension cost (income) presented in “Note 9 - Employee Benefit Plans.”
|
|
|
June 30, 2019
|
||||||||||||||
|
|
Amortized
|
|
Gross
Unrealized
|
|
Gross Unrealized
|
|
Estimated
|
||||||||
AVAILABLE FOR SALE
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
||||||||
State and political subdivisions
|
|
$
|
512,575
|
|
|
$
|
16,758
|
|
|
$
|
478
|
|
|
$
|
528,855
|
|
Other stocks and bonds
|
|
3,000
|
|
|
—
|
|
|
41
|
|
|
2,959
|
|
||||
Mortgage-backed securities:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential
|
|
1,296,888
|
|
|
22,944
|
|
|
846
|
|
|
1,318,986
|
|
||||
Commercial
|
|
233,044
|
|
|
4,963
|
|
|
20
|
|
|
237,987
|
|
||||
Total
|
|
$
|
2,045,507
|
|
|
$
|
44,665
|
|
|
$
|
1,385
|
|
|
$
|
2,088,787
|
|
|
|
|
|
|
|
|
|
|
||||||||
HELD TO MATURITY
|
|
|
|
|
|
|
|
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
||||||||
State and political subdivisions
|
|
$
|
3,018
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
3,054
|
|
Mortgage-backed securities:
(1)
|
|
|
|
|
|
|
|
|
||||||||
Residential
|
|
59,756
|
|
|
2,496
|
|
|
144
|
|
|
62,108
|
|
||||
Commercial
|
|
84,317
|
|
|
1,984
|
|
|
156
|
|
|
86,145
|
|
||||
Total
|
|
$
|
147,091
|
|
|
$
|
4,516
|
|
|
$
|
300
|
|
|
$
|
151,307
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Amortized
|
|
Gross
Unrealized
|
|
Gross Unrealized
|
|
Estimated
|
||||||||
AVAILABLE FOR SALE
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
||||||||
State and political subdivisions
|
|
$
|
728,142
|
|
|
$
|
6,115
|
|
|
$
|
17,656
|
|
|
$
|
716,601
|
|
Other stocks and bonds
|
|
3,000
|
|
|
—
|
|
|
291
|
|
|
2,709
|
|
||||
Mortgage-backed securities:
(1)
|
|
|
|
|
|
|
|
|
|
|||||||
Residential
|
|
738,585
|
|
|
3,498
|
|
|
9,111
|
|
|
732,972
|
|
||||
Commercial
|
|
543,758
|
|
|
941
|
|
|
7,545
|
|
|
537,154
|
|
||||
Total
|
|
$
|
2,013,485
|
|
|
$
|
10,554
|
|
|
$
|
34,603
|
|
|
$
|
1,989,436
|
|
|
|
|
|
|
|
|
|
|
||||||||
HELD TO MATURITY
|
|
|
|
|
|
|
|
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
||||||||
State and political subdivisions
|
|
$
|
3,083
|
|
|
$
|
5
|
|
|
$
|
42
|
|
|
$
|
3,046
|
|
Mortgage-backed securities:
(1)
|
|
|
|
|
|
|
|
|
|
|||||||
Residential
|
|
59,655
|
|
|
154
|
|
|
1,140
|
|
|
58,669
|
|
||||
Commercial
|
|
100,193
|
|
|
201
|
|
|
2,328
|
|
|
98,066
|
|
||||
Total
|
|
$
|
162,931
|
|
|
$
|
360
|
|
|
$
|
3,510
|
|
|
$
|
159,781
|
|
(1)
|
All mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.
|
|
June 30, 2019
|
||||||||||||||||||||||
|
Less Than 12 Months
|
|
More Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized
Loss
|
|
Fair Value
|
|
Unrealized
Loss
|
|
Fair Value
|
|
Unrealized
Loss
|
||||||||||||
AVAILABLE FOR SALE
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and political subdivisions
|
$
|
2,281
|
|
|
$
|
10
|
|
|
$
|
28,087
|
|
|
$
|
468
|
|
|
$
|
30,368
|
|
|
$
|
478
|
|
Other stocks and bonds
|
2,959
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
2,959
|
|
|
41
|
|
||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
629
|
|
|
2
|
|
|
91,649
|
|
|
844
|
|
|
92,278
|
|
|
846
|
|
||||||
Commercial
|
—
|
|
|
—
|
|
|
15,033
|
|
|
20
|
|
|
15,033
|
|
|
20
|
|
||||||
Total
|
$
|
5,869
|
|
|
$
|
53
|
|
|
$
|
134,769
|
|
|
$
|
1,332
|
|
|
$
|
140,638
|
|
|
$
|
1,385
|
|
HELD TO MATURITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,579
|
|
|
$
|
144
|
|
|
$
|
2,579
|
|
|
$
|
144
|
|
Commercial
|
—
|
|
|
—
|
|
|
14,701
|
|
|
156
|
|
|
14,701
|
|
|
156
|
|
||||||
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,280
|
|
|
$
|
300
|
|
|
$
|
17,280
|
|
|
$
|
300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
December 31, 2018
|
||||||||||||||||||||||
|
Less Than 12 Months
|
|
More Than 12 Months
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized
Loss |
|
Fair Value
|
|
Unrealized
Loss |
|
Fair Value
|
|
Unrealized
Loss |
||||||||||||
AVAILABLE FOR SALE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and political subdivisions
|
$
|
98,112
|
|
|
$
|
899
|
|
|
$
|
399,205
|
|
|
$
|
16,757
|
|
|
$
|
497,317
|
|
|
$
|
17,656
|
|
Other stocks and bonds
|
2,709
|
|
|
291
|
|
|
—
|
|
|
—
|
|
|
2,709
|
|
|
291
|
|
||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
5,552
|
|
|
27
|
|
|
488,334
|
|
|
9,084
|
|
|
493,886
|
|
|
9,111
|
|
||||||
Commercial
|
9,529
|
|
|
30
|
|
|
457,704
|
|
|
7,515
|
|
|
467,233
|
|
|
7,545
|
|
||||||
Total
|
$
|
115,902
|
|
|
$
|
1,247
|
|
|
$
|
1,345,243
|
|
|
$
|
33,356
|
|
|
$
|
1,461,145
|
|
|
$
|
34,603
|
|
HELD TO MATURITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and political subdivisions
|
$
|
235
|
|
|
$
|
1
|
|
|
$
|
2,022
|
|
|
$
|
41
|
|
|
$
|
2,257
|
|
|
$
|
42
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
4,826
|
|
|
60
|
|
|
51,046
|
|
|
1,080
|
|
|
55,872
|
|
|
1,140
|
|
||||||
Commercial
|
399
|
|
|
2
|
|
|
89,168
|
|
|
2,326
|
|
|
89,567
|
|
|
2,328
|
|
||||||
Total
|
$
|
5,460
|
|
|
$
|
63
|
|
|
$
|
142,236
|
|
|
$
|
3,447
|
|
|
$
|
147,696
|
|
|
$
|
3,510
|
|
|
|
|
|
||||
|
Three Months Ended
June 30, |
||||||
|
2019
|
|
2018
|
||||
U.S. Treasury
|
$
|
—
|
|
|
$
|
23
|
|
State and political subdivisions
|
3,527
|
|
|
6,353
|
|
||
Other stocks and bonds
|
27
|
|
|
28
|
|
||
Mortgage-backed securities
|
13,246
|
|
|
10,210
|
|
||
Total interest income on securities
|
$
|
16,800
|
|
|
$
|
16,614
|
|
|
Six Months Ended
June 30, |
||||||
|
2019
|
|
2018
|
||||
U.S. Treasury
|
$
|
—
|
|
|
$
|
131
|
|
U.S. government agency debentures
|
—
|
|
|
89
|
|
||
State and political subdivisions
|
7,645
|
|
|
12,734
|
|
||
Other stocks and bonds
|
55
|
|
|
58
|
|
||
Mortgage-backed securities
|
25,720
|
|
|
21,104
|
|
||
Total interest income on securities
|
$
|
33,420
|
|
|
$
|
34,116
|
|
|
June 30, 2019
|
||||||
|
Amortized Cost
|
|
Fair Value
|
||||
AVAILABLE FOR SALE
|
|
||||||
Investment securities:
|
|
|
|
||||
Due in one year or less
|
$
|
3,349
|
|
|
$
|
3,363
|
|
Due after one year through five years
|
8,406
|
|
|
8,469
|
|
||
Due after five years through ten years
|
28,488
|
|
|
29,573
|
|
||
Due after ten years
|
475,332
|
|
|
490,409
|
|
||
|
515,575
|
|
|
531,814
|
|
||
Mortgage-backed securities
|
1,529,932
|
|
|
1,556,973
|
|
||
Total
|
$
|
2,045,507
|
|
|
$
|
2,088,787
|
|
|
June 30, 2019
|
||||||
|
Amortized Cost
|
|
Fair Value
|
||||
HELD TO MATURITY
|
|
||||||
Investment securities:
|
|
|
|
||||
Due in one year or less
|
$
|
115
|
|
|
$
|
115
|
|
Due after one year through five years
|
1,658
|
|
|
1,675
|
|
||
Due after five years through ten years
|
1,245
|
|
|
1,264
|
|
||
Due after ten years
|
—
|
|
|
—
|
|
||
|
3,018
|
|
|
3,054
|
|
||
Mortgage-backed securities:
|
144,073
|
|
|
148,253
|
|
||
Total
|
$
|
147,091
|
|
|
$
|
151,307
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net gains (losses) recognized during the period on equity investments
|
$
|
87
|
|
|
$
|
(42
|
)
|
|
$
|
163
|
|
|
$
|
(134
|
)
|
Less: Net gains (losses) recognized during the period on equity investments sold during the period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Unrealized gains (losses) recognized during the reporting period on equity investments still held at the reporting date
|
$
|
87
|
|
|
$
|
(42
|
)
|
|
$
|
163
|
|
|
$
|
(134
|
)
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Real estate loans:
|
|
|
|
||||
Construction
|
$
|
579,565
|
|
|
$
|
507,732
|
|
1-4 family residential
|
782,073
|
|
|
794,499
|
|
||
Commercial
|
1,251,248
|
|
|
1,194,118
|
|
||
Commercial loans
|
389,521
|
|
|
356,649
|
|
||
Municipal loans
|
357,028
|
|
|
353,370
|
|
||
Loans to individuals
|
100,708
|
|
|
106,431
|
|
||
Total loans
|
3,460,143
|
|
|
3,312,799
|
|
||
Less: Allowance for loan losses
(1)
|
24,705
|
|
|
27,019
|
|
||
Net loans
|
$
|
3,435,438
|
|
|
$
|
3,285,780
|
|
(1)
|
The allowance for loan losses recorded on purchased credit impaired (“PCI”) loans totaled
$139,000
and
$302,000
as of
June 30, 2019
and
December 31, 2018
, respectively.
|
•
|
Pass (Rating 1 – 4) – This rating is assigned to all satisfactory loans. This category, by definition, consists of acceptable credit. Credit and collateral exceptions should not be present, although their presence would not necessarily prohibit a loan from being rated Pass, if deficiencies are in the process of correction. These loans are not included in the Watch List.
|
•
|
Pass Watch (Rating 5) – These loans require some degree of special treatment, but not due to credit quality. This category does not include loans specially mentioned or adversely classified; however, particular attention is warranted to characteristics such as:
|
◦
|
A lack of, or abnormally extended payment program;
|
◦
|
A heavy degree of concentration of collateral without sufficient margin;
|
◦
|
A vulnerability to competition through lesser or extensive financial leverage; and
|
◦
|
A dependence on a single or few customers or sources of supply and materials without suitable substitutes or alternatives.
|
•
|
Special Mention (Rating 6) – A Special Mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in our credit position at some future date. Special Mention loans are not adversely classified and do not expose us to sufficient risk to warrant adverse classification.
|
•
|
Substandard (Rating 7) – Substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.
|
•
|
Doubtful (Rating 8) – Loans classified as Doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation, in full, on the basis of currently known facts, conditions and values, highly questionable and improbable.
|
•
|
Changes in lending policies or procedures, including underwriting, collection, charge-off and recovery procedures;
|
•
|
Changes in local, regional and national economic and business conditions, including entry into new markets;
|
•
|
Changes in the volume or type of credit extended;
|
•
|
Changes in the experience, ability and depth of lending management;
|
•
|
Changes in the volume and severity of past due, nonaccrual, restructured, or classified loans;
|
•
|
Changes in charge-off trends;
|
•
|
Changes in loan review or Board oversight;
|
•
|
Changes in the level of concentrations of credit; and
|
•
|
Changes in external factors, such as competition and legal and regulatory requirements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||||||
|
Real Estate
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Construction
|
|
1-4 Family
Residential
|
|
Commercial
|
|
Commercial
Loans
|
|
Municipal
Loans
|
|
Loans to
Individuals
|
|
Total
|
||||||||||||||
Balance at beginning of period
|
$
|
4,259
|
|
|
$
|
3,382
|
|
|
$
|
10,660
|
|
|
$
|
4,287
|
|
|
$
|
508
|
|
|
$
|
1,059
|
|
|
$
|
24,155
|
|
Provision (reversal) for loan losses
(2)
|
(660
|
)
|
|
137
|
|
|
1,516
|
|
|
1,266
|
|
|
22
|
|
|
225
|
|
|
2,506
|
|
|||||||
Loans charged off
|
—
|
|
|
—
|
|
|
(1,661
|
)
|
|
(130
|
)
|
|
—
|
|
|
(606
|
)
|
|
(2,397
|
)
|
|||||||
Recoveries of loans charged off
|
—
|
|
|
3
|
|
|
19
|
|
|
123
|
|
|
—
|
|
|
296
|
|
|
441
|
|
|||||||
Balance at end of period
|
$
|
3,599
|
|
|
$
|
3,522
|
|
|
$
|
10,534
|
|
|
$
|
5,546
|
|
|
$
|
530
|
|
|
$
|
974
|
|
|
$
|
24,705
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||||||
|
Real Estate
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Construction
|
|
1-4 Family
Residential
|
|
Commercial
|
|
Commercial
Loans
|
|
Municipal
Loans
|
|
Loans to
Individuals
|
|
Total
|
||||||||||||||
Balance at beginning of period
|
$
|
3,597
|
|
|
$
|
3,844
|
|
|
$
|
13,968
|
|
|
$
|
3,974
|
|
|
$
|
525
|
|
|
$
|
1,111
|
|
|
$
|
27,019
|
|
Provision (reversal) for loan losses
(2)
|
2
|
|
|
(310
|
)
|
|
(596
|
)
|
|
2,000
|
|
|
5
|
|
|
487
|
|
|
1,588
|
|
|||||||
Loans charged off
|
—
|
|
|
(18
|
)
|
|
(2,876
|
)
|
|
(581
|
)
|
|
—
|
|
|
(1,207
|
)
|
|
(4,682
|
)
|
|||||||
Recoveries of loans charged off
|
—
|
|
|
6
|
|
|
38
|
|
|
153
|
|
|
—
|
|
|
583
|
|
|
780
|
|
|||||||
Balance at end of period
|
$
|
3,599
|
|
|
$
|
3,522
|
|
|
$
|
10,534
|
|
|
$
|
5,546
|
|
|
$
|
530
|
|
|
$
|
974
|
|
|
$
|
24,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||||||
|
Real Estate
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Construction
|
|
1-4 Family
Residential
|
|
Commercial
|
|
Commercial
Loans
|
|
Municipal
Loans
|
|
Loans to
Individuals
|
|
Total
|
||||||||||||||
Balance at beginning of period
|
$
|
3,597
|
|
|
$
|
2,377
|
|
|
$
|
14,089
|
|
|
$
|
2,385
|
|
|
$
|
851
|
|
|
$
|
921
|
|
|
$
|
24,220
|
|
Provision (reversal) for loan losses
(2)
|
244
|
|
|
403
|
|
|
(57
|
)
|
|
328
|
|
|
8
|
|
|
355
|
|
|
1,281
|
|
|||||||
Loans charged off
|
—
|
|
|
(57
|
)
|
|
—
|
|
|
(172
|
)
|
|
—
|
|
|
(688
|
)
|
|
(917
|
)
|
|||||||
Recoveries of loans charged off
|
—
|
|
|
7
|
|
|
4
|
|
|
19
|
|
|
—
|
|
|
458
|
|
|
488
|
|
|||||||
Balance at end of period
|
$
|
3,841
|
|
|
$
|
2,730
|
|
|
$
|
14,036
|
|
|
$
|
2,560
|
|
|
$
|
859
|
|
|
$
|
1,046
|
|
|
$
|
25,072
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||||||
|
Real Estate
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Construction
|
|
1-4 Family
Residential
|
|
Commercial
|
|
Commercial
Loans
|
|
Municipal
Loans
|
|
Loans to
Individuals
|
|
Total
|
||||||||||||||
Balance at beginning of period
(1)
|
$
|
3,676
|
|
|
$
|
2,445
|
|
|
$
|
10,821
|
|
|
$
|
2,094
|
|
|
$
|
860
|
|
|
$
|
885
|
|
|
$
|
20,781
|
|
Provision (reversal) for loan losses
(2)
|
179
|
|
|
321
|
|
|
3,209
|
|
|
661
|
|
|
(1
|
)
|
|
647
|
|
|
5,016
|
|
|||||||
Loans charged off
|
(14
|
)
|
|
(57
|
)
|
|
—
|
|
|
(257
|
)
|
|
—
|
|
|
(1,356
|
)
|
|
(1,684
|
)
|
|||||||
Recoveries of loans charged off
|
—
|
|
|
21
|
|
|
6
|
|
|
62
|
|
|
—
|
|
|
870
|
|
|
959
|
|
|||||||
Balance at end of period
|
$
|
3,841
|
|
|
$
|
2,730
|
|
|
$
|
14,036
|
|
|
$
|
2,560
|
|
|
$
|
859
|
|
|
$
|
1,046
|
|
|
$
|
25,072
|
|
(2)
|
Of the
$2.5 million
and
$1.6 million
provision for loan losses for the
three and six months ended June 30, 2019
,
$111,000
and
$163,000
related to provision expense reversed on PCI loans, respectively. Of the
$1.3 million
and
$5.0 million
recorded in provision for loan losses for the
three and six months ended June 30, 2018
,
$358,000
related to provision expense on PCI loans.
|
|
June 30, 2019
|
||||||||||||||||||||||||||
|
Real Estate
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Construction
|
|
1-4 Family
Residential
|
|
Commercial
|
|
Commercial
Loans
|
|
Municipal
Loans
|
|
Loans to
Individuals
|
|
Total
|
||||||||||||||
Ending balance – individually evaluated for impairment
(1)
|
$
|
23
|
|
|
$
|
66
|
|
|
$
|
1,408
|
|
|
$
|
782
|
|
|
$
|
—
|
|
|
$
|
90
|
|
|
$
|
2,369
|
|
Ending balance – collectively evaluated for impairment
|
3,576
|
|
|
3,456
|
|
|
9,126
|
|
|
4,764
|
|
|
530
|
|
|
884
|
|
|
22,336
|
|
|||||||
Balance at end of period
|
$
|
3,599
|
|
|
$
|
3,522
|
|
|
$
|
10,534
|
|
|
$
|
5,546
|
|
|
$
|
530
|
|
|
$
|
974
|
|
|
$
|
24,705
|
|
|
December 31, 2018
|
||||||||||||||||||||||||||
|
Real Estate
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Construction
|
|
1-4 Family
Residential
|
|
Commercial
|
|
Commercial
Loans
|
|
Municipal
Loans
|
|
Loans to
Individuals
|
|
Total
|
||||||||||||||
Ending balance – individually evaluated for impairment
(1)
|
$
|
13
|
|
|
$
|
40
|
|
|
$
|
5,337
|
|
|
$
|
368
|
|
|
$
|
1
|
|
|
$
|
149
|
|
|
$
|
5,908
|
|
Ending balance – collectively evaluated for impairment
|
3,584
|
|
|
3,804
|
|
|
8,631
|
|
|
3,606
|
|
|
524
|
|
|
962
|
|
|
21,111
|
|
|||||||
Balance at end of period
|
$
|
3,597
|
|
|
$
|
3,844
|
|
|
$
|
13,968
|
|
|
$
|
3,974
|
|
|
$
|
525
|
|
|
$
|
1,111
|
|
|
$
|
27,019
|
|
(1)
|
The allowance for loan losses on PCI loans totaled
$139,000
and
$302,000
as of
June 30, 2019
and
December 31, 2018
, respectively.
|
|
June 30, 2019
|
||||||||||||||||||||||||||
|
Real Estate
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Construction
|
|
1-4 Family
Residential
|
|
Commercial
|
|
Commercial
Loans
|
|
Municipal
Loans
|
|
Loans to
Individuals
|
|
Total
|
||||||||||||||
Loans individually evaluated for impairment
|
$
|
200
|
|
|
$
|
1,268
|
|
|
$
|
21,361
|
|
|
$
|
2,523
|
|
|
$
|
429
|
|
|
$
|
136
|
|
|
$
|
25,917
|
|
Loans collectively evaluated for impairment
|
579,226
|
|
|
772,725
|
|
|
1,198,899
|
|
|
385,322
|
|
|
356,599
|
|
|
100,354
|
|
|
3,393,125
|
|
|||||||
Purchased credit impaired loans
|
139
|
|
|
8,080
|
|
|
30,988
|
|
|
1,676
|
|
|
—
|
|
|
218
|
|
|
41,101
|
|
|||||||
Total ending loan balance
|
$
|
579,565
|
|
|
$
|
782,073
|
|
|
$
|
1,251,248
|
|
|
$
|
389,521
|
|
|
$
|
357,028
|
|
|
$
|
100,708
|
|
|
$
|
3,460,143
|
|
|
December 31, 2018
|
||||||||||||||||||||||||||
|
Real Estate
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Construction
|
|
1-4 Family
Residential
|
|
Commercial
|
|
Commercial
Loans
|
|
Municipal
Loans
|
|
Loans to
Individuals
|
|
Total
|
||||||||||||||
Loans individually evaluated for impairment
|
$
|
12
|
|
|
$
|
1,215
|
|
|
$
|
33,013
|
|
|
$
|
1,394
|
|
|
$
|
429
|
|
|
$
|
184
|
|
|
$
|
36,247
|
|
Loans collectively evaluated for impairment
|
507,564
|
|
|
782,614
|
|
|
1,128,220
|
|
|
353,036
|
|
|
352,941
|
|
|
105,775
|
|
|
3,230,150
|
|
|||||||
Purchased credit impaired loans
|
156
|
|
|
10,670
|
|
|
32,885
|
|
|
2,219
|
|
|
—
|
|
|
472
|
|
|
46,402
|
|
|||||||
Total ending loan balance
|
$
|
507,732
|
|
|
$
|
794,499
|
|
|
$
|
1,194,118
|
|
|
$
|
356,649
|
|
|
$
|
353,370
|
|
|
$
|
106,431
|
|
|
$
|
3,312,799
|
|
|
June 30, 2019
|
||||||||||||||||||||||
|
Pass
|
|
Pass Watch
(1)
|
|
Special Mention
(1)
|
|
Substandard
(1)
|
|
Doubtful
(1)
|
|
Total
|
||||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
$
|
579,253
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
265
|
|
|
$
|
—
|
|
|
$
|
579,565
|
|
1-4 family residential
|
776,375
|
|
|
31
|
|
|
166
|
|
|
4,784
|
|
|
717
|
|
|
782,073
|
|
||||||
Commercial
|
1,150,646
|
|
|
55,208
|
|
|
7,444
|
|
|
37,793
|
|
|
157
|
|
|
1,251,248
|
|
||||||
Commercial loans
|
375,664
|
|
|
3,362
|
|
|
6,063
|
|
|
4,163
|
|
|
269
|
|
|
389,521
|
|
||||||
Municipal loans
|
357,028
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
357,028
|
|
||||||
Loans to individuals
|
100,030
|
|
|
—
|
|
|
—
|
|
|
380
|
|
|
298
|
|
|
100,708
|
|
||||||
Total
|
$
|
3,338,996
|
|
|
$
|
58,648
|
|
|
$
|
13,673
|
|
|
$
|
47,385
|
|
|
$
|
1,441
|
|
|
$
|
3,460,143
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
Pass
|
|
Pass Watch
(1)
|
|
Special Mention
(1)
|
|
Substandard
(1)
|
|
Doubtful
(1)
|
|
Total
|
||||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
$
|
507,529
|
|
|
$
|
163
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
12
|
|
|
$
|
507,732
|
|
1-4 family residential
|
787,516
|
|
|
37
|
|
|
100
|
|
|
5,489
|
|
|
1,357
|
|
|
794,499
|
|
||||||
Commercial
|
1,067,874
|
|
|
11,479
|
|
|
26,490
|
|
|
87,767
|
|
|
508
|
|
|
1,194,118
|
|
||||||
Commercial loans
|
349,495
|
|
|
520
|
|
|
3,189
|
|
|
2,988
|
|
|
457
|
|
|
356,649
|
|
||||||
Municipal loans
|
353,370
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
353,370
|
|
||||||
Loans to individuals
|
105,536
|
|
|
4
|
|
|
4
|
|
|
678
|
|
|
209
|
|
|
106,431
|
|
||||||
Total
|
$
|
3,171,320
|
|
|
$
|
12,203
|
|
|
$
|
29,783
|
|
|
$
|
96,950
|
|
|
$
|
2,543
|
|
|
$
|
3,312,799
|
|
(1)
|
Includes PCI loans comprised of
$15,000
pass watch,
$217,000
special mention,
$2.7 million
substandard and
$305,000
doubtful as of
June 30, 2019
. Includes PCI loans comprised of
$22,000
pass watch,
$859,000
special mention,
$3.9 million
substandard and
$1.2 million
doubtful as of
December 31, 2018
.
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Nonaccrual loans
(1) (2)
|
$
|
16,376
|
|
|
$
|
35,770
|
|
Accruing loans past due more than 90 days
(1)
|
—
|
|
|
—
|
|
||
Restructured loans
(3)
|
11,918
|
|
|
5,930
|
|
||
Other real estate owned
|
1,069
|
|
|
1,206
|
|
||
Repossessed assets
|
—
|
|
|
—
|
|
||
Total nonperforming assets
|
$
|
29,363
|
|
|
$
|
42,906
|
|
(1)
|
Excludes PCI loans measured at fair value at acquisition if the timing and amount of cash flows expected to be collected from those sales can be reasonably estimated.
|
(2)
|
Includes
$8.9 million
and
$10.9 million
of restructured loans as of
June 30, 2019
and
December 31, 2018
, respectively.
|
(3)
|
Includes
$776,000
and
$3.1 million
in PCI loans restructured as of
June 30, 2019
and
December 31, 2018
, respectively.
|
|
Nonaccrual Loans
|
||||||
|
June 30, 2019
|
|
December 31, 2018
|
||||
Real estate loans:
|
|
|
|
||||
Construction
|
$
|
200
|
|
|
$
|
12
|
|
1-4 family residential
|
1,418
|
|
|
2,202
|
|
||
Commercial
|
13,383
|
|
|
32,599
|
|
||
Commercial loans
|
1,047
|
|
|
639
|
|
||
Loans to individuals
|
328
|
|
|
318
|
|
||
Total
|
$
|
16,376
|
|
|
$
|
35,770
|
|
|
June 30, 2019
|
||||||||||
|
Unpaid Contractual Principal Balance
|
|
Recorded Investment
|
|
Related
Allowance for
Loan Losses
|
||||||
Real estate loans:
|
|
|
|
|
|
||||||
Construction
|
$
|
356
|
|
|
$
|
323
|
|
|
$
|
23
|
|
1-4 family residential
|
8,646
|
|
|
7,491
|
|
|
66
|
|
|||
Commercial
|
26,198
|
|
|
22,999
|
|
|
1,408
|
|
|||
Commercial loans
|
4,033
|
|
|
3,449
|
|
|
782
|
|
|||
Municipal loans
|
429
|
|
|
429
|
|
|
—
|
|
|||
Loans to individuals
|
481
|
|
|
354
|
|
|
90
|
|
|||
Total
(1)
|
$
|
40,143
|
|
|
$
|
35,045
|
|
|
$
|
2,369
|
|
|
December 31, 2018
|
||||||||||
|
Unpaid
Contractual
Principal
Balance
|
|
Recorded
Investment
|
|
Related
Allowance for
Loan Losses
|
||||||
Real estate loans:
|
|
|
|
|
|
||||||
Construction
|
$
|
182
|
|
|
$
|
148
|
|
|
$
|
13
|
|
1-4 family residential
|
6,507
|
|
|
5,923
|
|
|
40
|
|
|||
Commercial
|
36,457
|
|
|
34,744
|
|
|
5,337
|
|
|||
Commercial loans
|
2,874
|
|
|
2,366
|
|
|
368
|
|
|||
Municipal loans
|
429
|
|
|
429
|
|
|
1
|
|
|||
Loans to individuals
|
825
|
|
|
657
|
|
|
149
|
|
|||
Total
(1)
|
$
|
47,274
|
|
|
$
|
44,267
|
|
|
$
|
5,908
|
|
(1)
|
Includes
$9.1 million
and
$8.0 million
of PCI loans that experienced deterioration in credit quality subsequent to the acquisition date as of
June 30, 2019
and
December 31, 2018
, respectively.
|
|
June 30, 2019
|
||||||||||||||||||||||
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater than 90 Days Past Due
|
|
Total Past
Due
|
|
Current
(1)
|
|
Total
|
||||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
$
|
343
|
|
|
$
|
276
|
|
|
$
|
193
|
|
|
$
|
812
|
|
|
$
|
578,753
|
|
|
$
|
579,565
|
|
1-4 family residential
|
2,250
|
|
|
1,330
|
|
|
293
|
|
|
3,873
|
|
|
778,200
|
|
|
782,073
|
|
||||||
Commercial
|
1,625
|
|
|
425
|
|
|
109
|
|
|
2,159
|
|
|
1,249,089
|
|
|
1,251,248
|
|
||||||
Commercial loans
|
2,070
|
|
|
567
|
|
|
619
|
|
|
3,256
|
|
|
386,265
|
|
|
389,521
|
|
||||||
Municipal loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
357,028
|
|
|
357,028
|
|
||||||
Loans to individuals
|
555
|
|
|
194
|
|
|
137
|
|
|
886
|
|
|
99,822
|
|
|
100,708
|
|
||||||
Total
|
$
|
6,843
|
|
|
$
|
2,792
|
|
|
$
|
1,351
|
|
|
$
|
10,986
|
|
|
$
|
3,449,157
|
|
|
$
|
3,460,143
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
30-59 Days Past Due
|
|
60-89 Days Past Due
|
|
Greater than 90 Days
Past Due
|
|
Total Past
Due
|
|
Current
(1)
|
|
Total
|
||||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
$
|
627
|
|
|
$
|
307
|
|
|
$
|
—
|
|
|
$
|
934
|
|
|
$
|
506,798
|
|
|
$
|
507,732
|
|
1-4 family residential
|
7,441
|
|
|
1,258
|
|
|
1,335
|
|
|
10,034
|
|
|
784,465
|
|
|
794,499
|
|
||||||
Commercial
|
10,663
|
|
|
7,655
|
|
|
—
|
|
|
18,318
|
|
|
1,175,800
|
|
|
1,194,118
|
|
||||||
Commercial loans
|
1,946
|
|
|
705
|
|
|
591
|
|
|
3,242
|
|
|
353,407
|
|
|
356,649
|
|
||||||
Municipal loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
353,370
|
|
|
353,370
|
|
||||||
Loans to individuals
|
1,289
|
|
|
351
|
|
|
146
|
|
|
1,786
|
|
|
104,645
|
|
|
106,431
|
|
||||||
Total
|
$
|
21,966
|
|
|
$
|
10,276
|
|
|
$
|
2,072
|
|
|
$
|
34,314
|
|
|
$
|
3,278,485
|
|
|
$
|
3,312,799
|
|
(1)
|
Includes PCI loans measured at fair value at acquisition if the timing and amount of cash flows expected to be collected from those sales can be reasonably estimated.
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended
|
||||||||||||||
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||||
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||
Real estate loans:
|
|
|
|
|
|
|
|
||||||||
Construction
|
$
|
214
|
|
|
$
|
5
|
|
|
$
|
140
|
|
|
$
|
1
|
|
1-4 family residential
|
7,533
|
|
|
130
|
|
|
3,955
|
|
|
47
|
|
||||
Commercial
|
24,394
|
|
|
153
|
|
|
31,916
|
|
|
5
|
|
||||
Commercial loans
|
2,753
|
|
|
38
|
|
|
2,024
|
|
|
19
|
|
||||
Municipal loans
|
429
|
|
|
6
|
|
|
502
|
|
|
7
|
|
||||
Loans to individuals
|
438
|
|
|
9
|
|
|
242
|
|
|
3
|
|
||||
Total
|
$
|
35,761
|
|
|
$
|
341
|
|
|
$
|
38,779
|
|
|
$
|
82
|
|
|
Six Months Ended
|
||||||||||||||
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||||
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Average Recorded
Investment |
|
Interest Income Recognized
|
||||||||
Real estate loans:
|
|
|
|
|
|
|
|
||||||||
Construction
|
$
|
200
|
|
|
$
|
9
|
|
|
$
|
114
|
|
|
$
|
1
|
|
1-4 family residential
|
6,271
|
|
|
210
|
|
|
3,945
|
|
|
93
|
|
||||
Commercial
|
30,917
|
|
|
440
|
|
|
20,595
|
|
|
9
|
|
||||
Commercial loans
|
2,699
|
|
|
68
|
|
|
1,900
|
|
|
36
|
|
||||
Municipal loans
|
429
|
|
|
12
|
|
|
502
|
|
|
14
|
|
||||
Loans to individuals
|
517
|
|
|
20
|
|
|
221
|
|
|
4
|
|
||||
Total
|
$
|
41,033
|
|
|
$
|
759
|
|
|
$
|
27,277
|
|
|
$
|
157
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended June 30, 2019
|
|||||||||||||||||
|
Extend Amortization
Period
|
|
Interest Rate Reductions
|
|
Combination
|
|
Total Modifications
|
|
Number of Loans
|
|||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|||||||||
1-4 family residential
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
Commercial
|
—
|
|
|
—
|
|
|
96
|
|
|
96
|
|
|
1
|
|
||||
Commercial loans
|
—
|
|
|
—
|
|
|
485
|
|
|
485
|
|
|
4
|
|
||||
Loans to individuals
|
—
|
|
|
—
|
|
|
25
|
|
|
25
|
|
|
3
|
|
||||
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
606
|
|
|
$
|
606
|
|
|
8
|
|
|
Six Months Ended June 30, 2019
|
|||||||||||||||||
|
Extend Amortization
Period
|
|
Interest Rate Reductions
|
|
Combination
|
|
Total Modifications
|
|
Number of Loans
|
|||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|||||||||
1-4 family residential
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
111
|
|
|
$
|
111
|
|
|
1
|
|
Commercial
|
7,594
|
|
|
—
|
|
|
96
|
|
|
7,690
|
|
|
2
|
|
||||
Commercial loans
|
56
|
|
|
—
|
|
|
485
|
|
|
541
|
|
|
5
|
|
||||
Loans to individuals
|
—
|
|
|
—
|
|
|
39
|
|
|
39
|
|
|
5
|
|
||||
Total
|
$
|
7,650
|
|
|
$
|
—
|
|
|
$
|
731
|
|
|
$
|
8,381
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended June 30, 2018
|
|||||||||||||||||
|
Extend Amortization
Period
|
|
Interest Rate Reductions
|
|
Combination
|
|
Total Modifications
|
|
Number of Loans
|
|||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|||||||||
1-4 family residential
|
$
|
—
|
|
|
$
|
80
|
|
|
$
|
—
|
|
|
$
|
80
|
|
|
1
|
|
Commercial loans
|
—
|
|
|
—
|
|
|
90
|
|
|
90
|
|
|
2
|
|
||||
Loans to individuals
|
9
|
|
|
—
|
|
|
13
|
|
|
22
|
|
|
3
|
|
||||
Total
|
$
|
9
|
|
|
$
|
80
|
|
|
$
|
103
|
|
|
$
|
192
|
|
|
6
|
|
|
Six Months Ended June 30, 2018
|
|||||||||||||||||
|
Extend Amortization
Period
|
|
Interest Rate Reductions
|
|
Combination
|
|
Total Modifications
|
|
Number of Loans
|
|||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|||||||||
1-4 family residential
|
$
|
—
|
|
|
$
|
80
|
|
|
$
|
—
|
|
|
$
|
80
|
|
|
1
|
|
Commercial loans
|
132
|
|
|
—
|
|
|
90
|
|
|
222
|
|
|
5
|
|
||||
Loans to individuals
|
106
|
|
|
—
|
|
|
13
|
|
|
119
|
|
|
4
|
|
||||
Total
|
$
|
238
|
|
|
$
|
80
|
|
|
$
|
103
|
|
|
$
|
421
|
|
|
10
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Outstanding principal balance
|
$
|
45,430
|
|
|
$
|
51,388
|
|
Carrying amount
|
$
|
41,101
|
|
|
$
|
46,402
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Balance at beginning of period
|
$
|
14,520
|
|
|
$
|
15,818
|
|
|
$
|
15,054
|
|
|
$
|
18,721
|
|
Changes in expected cash flows not affecting non-accretable differences
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,445
|
)
|
||||
Reclassifications (to) from nonaccretable discount
|
812
|
|
|
1,090
|
|
|
1,074
|
|
|
770
|
|
||||
Accretion
|
(776
|
)
|
|
(803
|
)
|
|
(1,572
|
)
|
|
(1,941
|
)
|
||||
Balance at end of period
|
$
|
14,556
|
|
|
$
|
16,105
|
|
|
$
|
14,556
|
|
|
$
|
16,105
|
|
|
|
June 30,
2019 |
|
December 31, 2018
|
||||
Other borrowings:
|
|
|
|
|
||||
Balance at end of period
|
|
$
|
26,064
|
|
|
$
|
36,810
|
|
Average amount outstanding during the period
(1)
|
|
15,653
|
|
|
10,880
|
|
||
Maximum amount outstanding during the period
(2)
|
|
28,354
|
|
|
36,810
|
|
||
Weighted average interest rate during the period
(3)
|
|
1.7
|
%
|
|
1.4
|
%
|
||
Interest rate at end of period
(4)
|
|
2.0
|
%
|
|
2.1
|
%
|
||
|
|
|
|
|
||||
Federal Home Loan Bank borrowings:
|
|
|
|
|
|
|
||
Balance at end of period
|
|
$
|
823,757
|
|
|
$
|
719,065
|
|
Average amount outstanding during the period
(1)
|
|
785,901
|
|
|
720,785
|
|
||
Maximum amount outstanding during the period
(2)
|
|
1,004,997
|
|
|
957,231
|
|
||
Weighted average interest rate during the period
(3)
|
|
2.1
|
%
|
|
1.8
|
%
|
||
Interest rate at end of period
(4)
|
|
2.4
|
%
|
|
2.3
|
%
|
(1)
|
The average amount outstanding during the period was computed by dividing the total daily outstanding principal balances by the number of days in the period.
|
(2)
|
The maximum amount outstanding at any month-end during the period.
|
(3)
|
The weighted average interest rate during the period was computed by dividing the actual interest expense (annualized for interim periods) by the average amount outstanding during the period. The weighted average interest rate on the FHLB borrowings includes the effect of interest rate swaps.
|
(4)
|
Stated rate.
|
|
|
Payments Due by Period
|
||||||||||||||||||||||||||
|
|
Less than 1 Year
|
|
1-2 Years
|
|
2-3 Years
|
|
3-4 Years
|
|
4-5 Years
|
|
Thereafter
|
|
Total
|
||||||||||||||
Other borrowings
|
|
$
|
25,931
|
|
|
$
|
133
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26,064
|
|
Federal Home Loan Bank borrowings
|
|
796,765
|
|
|
21,374
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,618
|
|
|
823,757
|
|
|||||||
Total obligations
|
|
$
|
822,696
|
|
|
$
|
21,507
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,618
|
|
|
$
|
849,821
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
(in thousands)
|
||||||
Subordinated notes:
(1)
|
|
|
|
||||
5.50% Subordinated Notes, net of unamortized debt issuance costs
(2)
|
$
|
98,490
|
|
|
$
|
98,407
|
|
Total Subordinated notes
|
98,490
|
|
|
98,407
|
|
||
Trust preferred subordinated debentures:
(3)
|
|
|
|
||||
Southside Statutory Trust III, net of unamortized debt issuance costs
(4)
|
20,556
|
|
|
20,554
|
|
||
Southside Statutory Trust IV
|
23,196
|
|
|
23,196
|
|
||
Southside Statutory Trust V
|
12,887
|
|
|
12,887
|
|
||
Magnolia Trust Company I
|
3,609
|
|
|
3,609
|
|
||
Total Trust preferred subordinated debentures
|
60,248
|
|
|
60,246
|
|
||
Total Long-term debt
|
$
|
158,738
|
|
|
$
|
158,653
|
|
(1)
|
This debt consists of subordinated notes with a remaining maturity greater than
one year
that qualify under the risk-based capital guidelines as Tier 2 capital, subject to certain limitations.
|
(2)
|
The unamortized discount and debt issuance costs reflected in the carrying amount of the subordinated notes totaled approximately
$1.5 million
at
June 30, 2019
and
$1.6 million
at
December 31, 2018
.
|
(3)
|
This debt consists of trust preferred securities that qualify under the risk-based capital guidelines as Tier 1 capital, subject to certain limitations.
|
(4)
|
The unamortized debt issuance costs reflected in the carrying amount of the Southside Statutory Trust III junior subordinated debentures totaled
$63,000
at
June 30, 2019
and
$65,000
at
December 31, 2018
.
|
(1)
|
On October 10, 2007, as part of an acquisition we assumed
$3.6 million
of floating rate junior subordinated debentures issued in 2005 to Magnolia Trust Company I.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
|
Defined Benefit
Pension Plan |
|
Defined Benefit Pension Plan Acquired
|
|
Restoration
Plan |
||||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Service cost
|
|
$
|
394
|
|
|
$
|
390
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
110
|
|
|
$
|
84
|
|
Interest cost
|
|
919
|
|
|
839
|
|
|
43
|
|
|
41
|
|
|
195
|
|
|
165
|
|
||||||
Expected return on assets
|
|
(1,511
|
)
|
|
(1,622
|
)
|
|
(73
|
)
|
|
(72
|
)
|
|
—
|
|
|
—
|
|
||||||
Net loss amortization
|
|
470
|
|
|
372
|
|
|
—
|
|
|
—
|
|
|
181
|
|
|
248
|
|
||||||
Prior service (credit) cost amortization
|
|
(4
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
||||||
Net periodic benefit cost (income)
|
|
$
|
268
|
|
|
$
|
(25
|
)
|
|
$
|
(30
|
)
|
|
$
|
(31
|
)
|
|
$
|
487
|
|
|
$
|
499
|
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
|
Defined Benefit
Pension Plan |
|
Defined Benefit Pension Plan Acquired
|
|
Restoration
Plan |
||||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Service cost
|
|
$
|
710
|
|
|
$
|
774
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
170
|
|
|
$
|
147
|
|
Interest cost
|
|
1,827
|
|
|
1,696
|
|
|
84
|
|
|
82
|
|
|
356
|
|
|
298
|
|
||||||
Expected return on assets
|
|
(3,015
|
)
|
|
(3,242
|
)
|
|
(146
|
)
|
|
(145
|
)
|
|
—
|
|
|
—
|
|
||||||
Net loss amortization
|
|
913
|
|
|
756
|
|
|
—
|
|
|
—
|
|
|
280
|
|
|
339
|
|
||||||
Prior service (credit) cost amortization
|
|
(7
|
)
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
||||||
Net periodic benefit cost (income)
|
|
$
|
428
|
|
|
$
|
(23
|
)
|
|
$
|
(62
|
)
|
|
$
|
(63
|
)
|
|
$
|
809
|
|
|
$
|
787
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
Estimated Fair Value
|
|
Estimated Fair Value
|
||||||||||||||||||||
|
|
Notional
Amount (1) |
|
Asset Derivative
|
|
Liability Derivative
|
|
Notional
Amount (1) |
|
Asset Derivative
|
|
Liability Derivative
|
||||||||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Swaps-Cash flow Hedge-Financial institution counterparties
|
|
$
|
270,000
|
|
|
$
|
2,334
|
|
|
$
|
3,442
|
|
|
$
|
270,000
|
|
|
$
|
9,388
|
|
|
$
|
457
|
|
Swaps-Fair Value Hedge-Financial institution counterparties
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,100
|
|
|
—
|
|
|
657
|
|
||||||
Derivatives designated as non-hedging instruments
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Swaps-Financial institution counterparties
|
|
110,699
|
|
|
16
|
|
|
6,614
|
|
|
93,967
|
|
|
1,119
|
|
|
1,087
|
|
||||||
Swaps-Customer counterparties
|
|
110,699
|
|
|
6,614
|
|
|
16
|
|
|
93,967
|
|
|
1,087
|
|
|
1,119
|
|
||||||
Gross derivatives
|
|
|
|
8,964
|
|
|
10,072
|
|
|
|
|
11,594
|
|
|
3,320
|
|
||||||||
Offsetting derivative assets/liabilities
|
|
|
|
(2,350
|
)
|
|
(2,350
|
)
|
|
|
|
(2,201
|
)
|
|
(2,201
|
)
|
||||||||
Cash collateral received/posted
|
|
|
|
—
|
|
|
(7,420
|
)
|
|
|
|
(8,306
|
)
|
|
—
|
|
||||||||
Net derivatives included in the consolidated balance sheets
(2)
|
|
|
|
$
|
6,614
|
|
|
$
|
302
|
|
|
|
|
$
|
1,087
|
|
|
$
|
1,119
|
|
(1)
|
Notional amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the consolidated balance sheets.
|
(2)
|
Net derivative assets are included in other assets and net derivative liabilities are included in other liabilities on the consolidated balance sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and our credit risk. We had
no
credit exposure related to interest rate swaps with financial institutions and
$6.6 million
related to interest rate swaps with customers at
June 30, 2019
. We had
no
credit exposure related to interest rate swaps with financial institutions and
$1.1 million
related to interest rate swaps with customers
at
December 31, 2018
. The credit risk associated with customer transactions is partially mitigated as these are generally secured by the non-cash collateral securing the underlying transaction being hedged.
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
|
|
Weighted Average
|
|
|
|
Weighted Average
|
||||||||||||||||
|
|
Notional Amount
|
|
Remaining Maturity
(in years)
|
|
Receive Rate
|
|
Pay
Rate
|
|
Notional Amount
|
|
Remaining Maturity
(in years) |
|
Receive Rate
|
|
Pay
Rate |
||||||||
Swaps-Cash flow hedge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial institution counterparties
|
|
$
|
270,000
|
|
|
4.3
|
|
2.44
|
%
|
|
1.58
|
%
|
|
$
|
270,000
|
|
|
4.8
|
|
2.45
|
%
|
|
1.58
|
%
|
Swaps-Fair value hedge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial institution counterparties
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
21,100
|
|
|
7.5
|
|
2.56
|
|
|
3.00
|
|
||
Swaps-Non-hedging
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial institution counterparties
|
|
110,699
|
|
|
11.6
|
|
2.42
|
|
|
2.57
|
|
|
93,967
|
|
|
11.6
|
|
2.36
|
|
|
2.58
|
|
||
Customer counterparties
|
|
110,699
|
|
|
11.6
|
|
2.57
|
|
|
2.42
|
|
|
93,967
|
|
|
11.6
|
|
2.58
|
|
|
2.36
|
|
|
June 30, 2019
|
||||||||||||||
|
|
|
Fair Value Measurements at the End of the Reporting Period Using
|
||||||||||||
|
Carrying
Amount
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
||||||||
Recurring fair value measurements
|
|
|
|
|
|
|
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
||||||||
State and political subdivisions
|
$
|
528,855
|
|
|
$
|
—
|
|
|
$
|
528,855
|
|
|
$
|
—
|
|
Other stocks and bonds
|
2,959
|
|
|
—
|
|
|
2,959
|
|
|
—
|
|
||||
Mortgage-backed securities:
(1)
|
|
|
|
|
|
|
|
|
|
||||||
Residential
|
1,318,986
|
|
|
—
|
|
|
1,318,986
|
|
|
—
|
|
||||
Commercial
|
237,987
|
|
|
—
|
|
|
237,987
|
|
|
—
|
|
||||
Equity investments:
|
|
|
|
|
|
|
|
||||||||
Equity investments
|
5,948
|
|
|
5,948
|
|
|
—
|
|
|
—
|
|
||||
Derivative assets:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
8,964
|
|
|
—
|
|
|
8,964
|
|
|
—
|
|
||||
Total asset recurring fair value measurements
|
$
|
2,103,699
|
|
|
$
|
5,948
|
|
|
$
|
2,097,751
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
10,072
|
|
|
$
|
—
|
|
|
$
|
10,072
|
|
|
$
|
—
|
|
Total liability recurring fair value measurements
|
$
|
10,072
|
|
|
$
|
—
|
|
|
$
|
10,072
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Nonrecurring fair value measurements
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreclosed assets
|
$
|
1,069
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,069
|
|
Impaired loans
(2)
|
32,148
|
|
|
—
|
|
|
—
|
|
|
32,148
|
|
||||
Total asset nonrecurring fair value measurements
|
$
|
33,217
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33,217
|
|
|
December 31, 2018
|
||||||||||||||
|
|
|
Fair Value Measurements at the End of the Reporting Period Using
|
||||||||||||
|
Carrying
Amount
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
||||||||
Recurring fair value measurements
|
|
|
|
|
|
|
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
||||||||
State and political subdivisions
|
$
|
716,601
|
|
|
$
|
—
|
|
|
$
|
716,601
|
|
|
$
|
—
|
|
Other stocks and bonds
|
2,709
|
|
|
—
|
|
|
2,709
|
|
|
—
|
|
||||
Mortgage-backed securities:
(1)
|
|
|
|
|
|
|
|
|
|||||||
Residential
|
732,972
|
|
|
—
|
|
|
732,972
|
|
|
—
|
|
||||
Commercial
|
537,154
|
|
|
—
|
|
|
537,154
|
|
|
—
|
|
||||
Equity investments:
|
|
|
|
|
|
|
|
||||||||
Equity investments
|
5,791
|
|
|
5,791
|
|
|
—
|
|
|
—
|
|
||||
Derivative assets:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
11,594
|
|
|
—
|
|
|
11,594
|
|
|
—
|
|
||||
Total asset recurring fair value measurements
|
$
|
2,006,821
|
|
|
$
|
5,791
|
|
|
$
|
2,001,030
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
3,320
|
|
|
$
|
—
|
|
|
$
|
3,320
|
|
|
$
|
—
|
|
Total liability recurring fair value measurements
|
$
|
3,320
|
|
|
$
|
—
|
|
|
$
|
3,320
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Nonrecurring fair value measurements
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreclosed assets
|
$
|
1,206
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,206
|
|
Impaired loans
(2)
|
37,813
|
|
|
—
|
|
|
—
|
|
|
37,813
|
|
||||
Total asset nonrecurring fair value measurements
|
$
|
39,019
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
39,019
|
|
(1)
|
All mortgage-backed securities are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.
|
(2)
|
Impaired loans represent collateral-dependent loans with a specific valuation allowance. Losses on these loans represent charge-offs which are netted against the allowance for loan losses.
|
|
|
|
Estimated Fair Value
|
||||||||||||||||
June 30, 2019
|
Carrying
Amount |
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
132,521
|
|
|
$
|
132,521
|
|
|
$
|
132,521
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Held to maturity, at carrying value
|
3,018
|
|
|
3,054
|
|
|
—
|
|
|
3,054
|
|
|
—
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Held to maturity, at carrying value
|
144,073
|
|
|
148,253
|
|
|
—
|
|
|
148,253
|
|
|
—
|
|
|||||
Federal Home Loan Bank stock, at cost
|
44,718
|
|
|
44,718
|
|
|
—
|
|
|
44,718
|
|
|
—
|
|
|||||
Equity investments
|
6,426
|
|
|
6,426
|
|
|
—
|
|
|
6,426
|
|
|
—
|
|
|||||
Loans, net of allowance for loan losses
|
3,435,438
|
|
|
3,493,559
|
|
|
—
|
|
|
—
|
|
|
3,493,559
|
|
|||||
Loans held for sale
|
1,812
|
|
|
1,812
|
|
|
—
|
|
|
1,812
|
|
|
—
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
$
|
4,479,256
|
|
|
$
|
4,478,936
|
|
|
$
|
—
|
|
|
$
|
4,478,936
|
|
|
$
|
—
|
|
Other borrowings
|
26,064
|
|
|
26,064
|
|
|
—
|
|
|
26,064
|
|
|
—
|
|
|||||
Federal Home Loan Bank borrowings
|
823,757
|
|
|
825,450
|
|
|
—
|
|
|
825,450
|
|
|
—
|
|
|||||
Subordinated notes, net of unamortized debt issuance costs
|
98,490
|
|
|
98,964
|
|
|
—
|
|
|
98,964
|
|
|
—
|
|
|||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs
|
60,248
|
|
|
58,819
|
|
|
—
|
|
|
58,819
|
|
|
—
|
|
|
|
|
Estimated Fair Value
|
||||||||||||||||
December 31, 2018
|
Carrying
Amount |
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
120,719
|
|
|
$
|
120,719
|
|
|
$
|
120,719
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Held to maturity, at carrying value
|
3,083
|
|
|
3,046
|
|
|
—
|
|
|
3,046
|
|
|
—
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Held to maturity, at carrying value
|
159,848
|
|
|
156,735
|
|
|
—
|
|
|
156,735
|
|
|
—
|
|
|||||
Federal Home Loan Bank stock, at cost
|
32,583
|
|
|
32,583
|
|
|
—
|
|
|
32,583
|
|
|
—
|
|
|||||
Equity investments
|
6,302
|
|
|
6,302
|
|
|
—
|
|
|
6,302
|
|
|
—
|
|
|||||
Loans, net of allowance for loan losses
|
3,285,780
|
|
|
3,251,923
|
|
|
—
|
|
|
—
|
|
|
3,251,923
|
|
|||||
Loans held for sale
|
601
|
|
|
601
|
|
|
—
|
|
|
601
|
|
|
—
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
$
|
4,425,030
|
|
|
$
|
4,417,902
|
|
|
$
|
—
|
|
|
$
|
4,417,902
|
|
|
$
|
—
|
|
Other borrowings
|
36,810
|
|
|
36,810
|
|
|
—
|
|
|
36,810
|
|
|
—
|
|
|||||
Federal Home Loan Bank borrowings
|
719,065
|
|
|
708,904
|
|
|
—
|
|
|
708,904
|
|
|
—
|
|
|||||
Subordinated notes, net of unamortized debt issuance costs
|
98,407
|
|
|
97,611
|
|
|
—
|
|
|
97,611
|
|
|
—
|
|
|||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs
|
60,246
|
|
|
54,729
|
|
|
—
|
|
|
54,729
|
|
|
—
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Current income tax expense
|
|
$
|
3,553
|
|
|
$
|
667
|
|
|
$
|
6,564
|
|
|
$
|
3,012
|
|
Deferred income tax expense
|
|
16
|
|
|
2,693
|
|
|
142
|
|
|
2,438
|
|
||||
Income tax expense
|
|
$
|
3,569
|
|
|
$
|
3,360
|
|
|
$
|
6,706
|
|
|
$
|
5,450
|
|
|
June 30, 2019
|
||
Operating leases:
|
|
||
Operating lease right-of-use assets
|
$
|
9,812
|
|
Operating lease liabilities
|
$
|
10,204
|
|
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||
Operating lease cost
|
|
$
|
395
|
|
|
$
|
789
|
|
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||
Cash paid for amounts included in the measurement of the lease liabilities:
|
|
|
|
|
||||
Operating cash flows from operating leases
|
|
$
|
360
|
|
|
$
|
700
|
|
Right-of-use assets obtained in exchange for new operating lease liabilities
|
|
$
|
654
|
|
|
$
|
654
|
|
|
June 30, 2019
|
|
Weighted average remaining lease term (in years)
|
12.5
|
|
Weighted average discount rate
|
3.88
|
%
|
Year ending December 31,
|
|
||
2019 (excluding the six months ended June 30, 2019)
|
$
|
625
|
|
2020
|
1,338
|
|
|
2021
|
1,232
|
|
|
2022
|
1,193
|
|
|
2023
|
1,044
|
|
|
2024 and thereafter
|
7,866
|
|
|
Total lease payments
(1)
|
13,298
|
|
|
Less: Interest
|
(3,094
|
)
|
|
Present value of lease liabilities
|
$
|
10,204
|
|
(1)
|
Excludes
$9.1 million
of lease payments for a lease executed but not yet commenced. Lease will commence in
2020
with a lease term of
20.4 years
.
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||
Gross rental income
|
$
|
742
|
|
|
$
|
1,487
|
|
Year ending December 31,
|
|
||
2019 (excluding the six months ended June 30, 2019)
|
$
|
1,388
|
|
2020
|
2,693
|
|
|
2021
|
1,576
|
|
|
2022
|
1,553
|
|
|
2023
|
1,316
|
|
|
2024 and thereafter
|
4,098
|
|
|
Total lease payments
|
$
|
12,624
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Unused commitments:
|
|
|
|
|
|
||
Commitments to extend credit
|
$
|
1,024,034
|
|
|
$
|
874,557
|
|
Standby letters of credit
|
27,463
|
|
|
27,438
|
|
||
Total
|
$
|
1,051,497
|
|
|
$
|
901,995
|
|
•
|
general i) political conditions, including, without limitation, governmental action and uncertainty resulting from U.S. and global political trends and (ii) economic conditions, either globally, nationally, in the State of Texas, or in the specific markets in which we operate, including, without limitation, the deterioration of the commercial real estate, residential real estate, construction and development, energy, oil and gas, credit or liquidity markets, which could cause an adverse change in our net interest margin, or a decline in the value of our assets, which could result in realized losses;
|
•
|
current or future legislation, regulatory changes or changes in monetary or fiscal policy that adversely affect the businesses in which we or our customers or our borrowers are engaged, including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”), the Federal Reserve’s actions with respect to interest rates, the capital requirements promulgated by the Basel Committee on Banking Supervision (“Basel Committee”), uncertainty relating to calculation of LIBOR and other regulatory responses to economic conditions;
|
•
|
adverse changes in the status or financial condition of the Government-Sponsored Enterprises (the “GSEs”) which impact the GSEs’ guarantees or ability to pay or issue debt;
|
•
|
adverse changes in the credit portfolios of other U.S. financial institutions relative to the performance of certain of our investment securities;
|
•
|
economic or other disruptions caused by acts of terrorism in the United States, Europe or other areas;
|
•
|
technological changes, including potential cyber-security incidents and other disruptions, or innovations to the financial services industry;
|
•
|
our ability to identify and address cyber-security risks such as data security breaches, malware, “denial of service” attacks, “hacking” and identity theft, which could disrupt our business and result in the disclosure of and/or misuse or misappropriation of confidential or proprietary information, disruption or damage of our systems, increased costs, significant losses, or adverse effects to our reputation;
|
•
|
the risk that our enterprise risk management framework may not identify or address risks adequately, which may result in unexpected losses;
|
•
|
changes in the interest rate yield curve such as flat, inverted or steep yield curves, or changes in the interest rate environment that impact interest margins and may impact prepayments on our mortgage-backed securities (“MBS”) portfolio;
|
•
|
increases in our nonperforming assets;
|
•
|
our ability to maintain adequate liquidity to fund operations and growth;
|
•
|
any applicable regulatory limits or other restrictions on Southside Bank (“the Bank”) and its ability to pay dividends to us;
|
•
|
the failure of our assumptions underlying our allowance for loan losses and other estimates;
|
•
|
the failure to maintain an effective system of controls and procedures, including internal control over financial reporting;
|
•
|
the effectiveness of our derivative financial instruments and hedging activities to manage risk;
|
•
|
unexpected outcomes of, and the costs associated with, existing or new litigation involving us;
|
•
|
changes impacting our balance sheet and leverage strategy;
|
•
|
risks related to actual mortgage prepayments diverging from projections;
|
•
|
risks related to actual U.S. agency MBS prepayments exceeding projected prepayment levels;
|
•
|
risks related to U.S. agency MBS prepayments increasing due to U.S. government programs designed to assist homeowners to refinance their mortgage that might not otherwise have qualified;
|
•
|
our ability to monitor interest rate risk;
|
•
|
risks related to fluctuations in the price per barrel of crude oil;
|
•
|
significant increases in competition in the banking and financial services industry;
|
•
|
changes in consumer spending, borrowing and saving habits;
|
•
|
execution of future acquisitions, reorganization or disposition transactions, including the risk that the anticipated benefits of such transactions are not realized;
|
•
|
our ability to increase market share and control expenses;
|
•
|
our ability to develop competitive new products and services in a timely manner and the acceptance of such products and services by our customers;
|
•
|
the effect of changes in federal or state tax laws;
|
•
|
the effect of compliance with legislation or regulatory changes;
|
•
|
the effect of changes in accounting policies and practices;
|
•
|
credit risks of borrowers, including any increase in those risks due to changing economic conditions;
|
•
|
risks related to loans secured by real estate, including the risk that the value and marketability of collateral could decline;
|
•
|
risks related to environmental liability as a result of certain lending activity;
|
•
|
risks associated with our common stock and our other securities; and
|
•
|
other risks and uncertainties discussed in “Part I - Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2018
.
|
Non-GAAP Reconciliations
|
|
|
|
|
||||||||||||
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net interest income (GAAP)
|
|
$
|
43,131
|
|
|
$
|
43,111
|
|
|
$
|
84,256
|
|
|
$
|
87,244
|
|
Tax equivalent adjustments:
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
598
|
|
|
583
|
|
|
1,196
|
|
|
1,165
|
|
||||
Investment securities (tax-exempt)
|
|
986
|
|
|
1,651
|
|
|
2,600
|
|
|
3,270
|
|
||||
Net interest income (FTE)
(1)
|
|
$
|
44,715
|
|
|
$
|
45,345
|
|
|
$
|
88,052
|
|
|
$
|
91,679
|
|
|
|
|
|
|
|
|
|
|
||||||||
Average earning assets
|
|
$
|
5,654,086
|
|
|
$
|
5,700,133
|
|
|
$
|
5,693,383
|
|
|
$
|
5,795,214
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest margin
|
|
3.06
|
%
|
|
3.03
|
%
|
|
2.98
|
%
|
|
3.04
|
%
|
||||
Net interest margin (FTE)
(1)
|
|
3.17
|
%
|
|
3.19
|
%
|
|
3.12
|
%
|
|
3.19
|
%
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net interest spread
|
|
2.69
|
%
|
|
2.75
|
%
|
|
2.63
|
%
|
|
2.77
|
%
|
||||
Net interest spread (FTE)
(1)
|
|
2.81
|
%
|
|
2.90
|
%
|
|
2.76
|
%
|
|
2.92
|
%
|
(1)
|
These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures.
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Unused commitments:
|
|
|
|
|
|
||
Commitments to extend credit
|
$
|
1,024,034
|
|
|
$
|
874,557
|
|
Standby letters of credit
|
27,463
|
|
|
27,438
|
|
||
Total
|
$
|
1,051,497
|
|
|
$
|
901,995
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest income:
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
$
|
42,982
|
|
|
$
|
39,301
|
|
|
$
|
84,601
|
|
|
$
|
78,131
|
|
Taxable investment securities
|
|
27
|
|
|
51
|
|
|
55
|
|
|
278
|
|
||||
Tax-exempt investment securities
|
|
3,527
|
|
|
6,353
|
|
|
7,645
|
|
|
12,734
|
|
||||
Mortgage-backed securities
|
|
13,246
|
|
|
10,210
|
|
|
25,720
|
|
|
21,104
|
|
||||
Federal Home Loan Bank stock and other investments
|
|
440
|
|
|
411
|
|
|
795
|
|
|
825
|
|
||||
Other interest earning assets
|
|
450
|
|
|
471
|
|
|
883
|
|
|
919
|
|
||||
Total interest income
|
|
60,672
|
|
|
56,797
|
|
|
119,699
|
|
|
113,991
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits
|
|
11,457
|
|
|
8,581
|
|
|
22,698
|
|
|
16,032
|
|
||||
Federal Home Loan Bank borrowings
|
|
3,899
|
|
|
3,007
|
|
|
8,356
|
|
|
6,639
|
|
||||
Subordinated notes
|
|
1,410
|
|
|
1,407
|
|
|
2,810
|
|
|
2,805
|
|
||||
Trust preferred subordinated debentures
|
|
718
|
|
|
658
|
|
|
1,447
|
|
|
1,227
|
|
||||
Other borrowings
|
|
57
|
|
|
33
|
|
|
132
|
|
|
44
|
|
||||
Total interest expense
|
|
17,541
|
|
|
13,686
|
|
|
35,443
|
|
|
26,747
|
|
||||
Net interest income
|
|
$
|
43,131
|
|
|
$
|
43,111
|
|
|
$
|
84,256
|
|
|
$
|
87,244
|
|
|
Three Months Ended June, 2019 Compared to 2018
|
||||||||||
|
Change Attributable to
|
|
Total
|
||||||||
Fully Taxable-Equivalent Basis:
|
Average Volume
|
|
Average Yield/Rate
|
|
Change
|
||||||
Interest income on:
|
|
|
|
|
|
||||||
Loans
(1)
|
$
|
1,257
|
|
|
$
|
2,437
|
|
|
$
|
3,694
|
|
Loans held for sale
|
2
|
|
|
—
|
|
|
2
|
|
|||
Taxable investment securities
|
(33
|
)
|
|
9
|
|
|
(24
|
)
|
|||
Tax-exempt investment securities
(1)
|
(3,363
|
)
|
|
(128
|
)
|
|
(3,491
|
)
|
|||
Mortgage-backed securities
|
1,818
|
|
|
1,218
|
|
|
3,036
|
|
|||
Federal Home Loan Bank stock, at cost, and equity investments
|
(19
|
)
|
|
48
|
|
|
29
|
|
|||
Interest earning deposits
|
(133
|
)
|
|
144
|
|
|
11
|
|
|||
Federal funds sold
|
(86
|
)
|
|
54
|
|
|
(32
|
)
|
|||
Total earning assets
|
(557
|
)
|
|
3,782
|
|
|
3,225
|
|
|||
Interest expense on:
|
|
|
|
|
|
||||||
Savings accounts
|
3
|
|
|
51
|
|
|
54
|
|
|||
Certificates of deposits
|
(213
|
)
|
|
1,771
|
|
|
1,558
|
|
|||
Interest bearing demand accounts
|
(24
|
)
|
|
1,288
|
|
|
1,264
|
|
|||
Federal Home Loan Bank borrowings
|
292
|
|
|
600
|
|
|
892
|
|
|||
Subordinated notes, net of unamortized debt issuance costs
|
2
|
|
|
1
|
|
|
3
|
|
|||
Trust preferred subordinated debentures, net of unamortized debt issuance costs
|
—
|
|
|
60
|
|
|
60
|
|
|||
Other borrowings
|
20
|
|
|
4
|
|
|
24
|
|
|||
Total interest bearing liabilities
|
80
|
|
|
3,775
|
|
|
3,855
|
|
|||
Net change
|
$
|
(637
|
)
|
|
$
|
7
|
|
|
$
|
(630
|
)
|
(1)
|
Interest yields on loans and securities that are nontaxable for federal income tax purposes are presented on a fully taxable-equivalent basis. See “Non-GAAP Financial Measures.”
|
|
Average Balances with Average Yields and Rates
|
||||||||||||||||||||
|
(unaudited)
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||||||||||
|
Avg Balance
|
|
Interest
|
|
Avg Yield/Rate
|
|
Avg Balance
|
|
Interest
|
|
Avg Yield/Rate
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans
(1)
|
$
|
3,387,323
|
|
|
$
|
43,559
|
|
|
5.16
|
%
|
|
$
|
3,285,756
|
|
|
$
|
39,865
|
|
|
4.87
|
%
|
Loans held for sale
|
1,965
|
|
|
21
|
|
|
4.29
|
%
|
|
1,794
|
|
|
19
|
|
|
4.25
|
%
|
||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable investment securities
(2)
|
3,000
|
|
|
27
|
|
|
3.61
|
%
|
|
6,891
|
|
|
51
|
|
|
2.97
|
%
|
||||
Tax-exempt investment securities
(2)
|
459,996
|
|
|
4,513
|
|
|
3.94
|
%
|
|
802,611
|
|
|
8,004
|
|
|
4.00
|
%
|
||||
Mortgage-backed and related securities
(2)
|
1,680,109
|
|
|
13,246
|
|
|
3.16
|
%
|
|
1,439,810
|
|
|
10,210
|
|
|
2.84
|
%
|
||||
Total securities
|
2,143,105
|
|
|
17,786
|
|
|
3.33
|
%
|
|
2,249,312
|
|
|
18,265
|
|
|
3.26
|
%
|
||||
Federal Home Loan Bank stock, at cost, and equity investments
|
52,311
|
|
|
440
|
|
|
3.37
|
%
|
|
54,729
|
|
|
411
|
|
|
3.01
|
%
|
||||
Interest earning deposits
|
66,017
|
|
|
411
|
|
|
2.50
|
%
|
|
92,291
|
|
|
400
|
|
|
1.74
|
%
|
||||
Federal funds sold
|
3,365
|
|
|
39
|
|
|
4.65
|
%
|
|
16,251
|
|
|
71
|
|
|
1.75
|
%
|
||||
Total earning assets
|
5,654,086
|
|
|
62,256
|
|
|
4.42
|
%
|
|
5,700,133
|
|
|
59,031
|
|
|
4.15
|
%
|
||||
Cash and due from banks
|
78,757
|
|
|
|
|
|
|
75,560
|
|
|
|
|
|
||||||||
Accrued interest and other assets
|
534,835
|
|
|
|
|
|
|
473,142
|
|
|
|
|
|
||||||||
Less: Allowance for loan losses
|
(24,838
|
)
|
|
|
|
|
|
(24,558
|
)
|
|
|
|
|
||||||||
Total assets
|
$
|
6,242,840
|
|
|
|
|
|
|
$
|
6,224,277
|
|
|
|
|
|
||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings accounts
|
$
|
365,205
|
|
|
262
|
|
|
0.29
|
%
|
|
$
|
360,340
|
|
|
208
|
|
|
0.23
|
%
|
||
Certificates of deposits
|
1,119,464
|
|
|
5,861
|
|
|
2.10
|
%
|
|
1,175,230
|
|
|
4,303
|
|
|
1.47
|
%
|
||||
Interest bearing demand accounts
|
1,969,593
|
|
|
5,334
|
|
|
1.09
|
%
|
|
1,981,427
|
|
|
4,070
|
|
|
0.82
|
%
|
||||
Total interest bearing deposits
|
3,454,262
|
|
|
11,457
|
|
|
1.33
|
%
|
|
3,516,997
|
|
|
8,581
|
|
|
0.98
|
%
|
||||
Federal Home Loan Bank borrowings
|
755,748
|
|
|
3,899
|
|
|
2.07
|
%
|
|
692,386
|
|
|
3,007
|
|
|
1.74
|
%
|
||||
Subordinated notes, net of unamortized debt issuance costs
|
98,469
|
|
|
1,410
|
|
|
5.74
|
%
|
|
98,306
|
|
|
1,407
|
|
|
5.74
|
%
|
||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs
|
60,247
|
|
|
718
|
|
|
4.78
|
%
|
|
60,243
|
|
|
658
|
|
|
4.38
|
%
|
||||
Other borrowings
|
14,530
|
|
|
57
|
|
|
1.57
|
%
|
|
9,283
|
|
|
33
|
|
|
1.43
|
%
|
||||
Total interest bearing liabilities
|
4,383,256
|
|
|
17,541
|
|
|
1.61
|
%
|
|
4,377,215
|
|
|
13,686
|
|
|
1.25
|
%
|
||||
Noninterest bearing deposits
|
1,014,746
|
|
|
|
|
|
|
1,045,298
|
|
|
|
|
|
||||||||
Accrued expenses and other liabilities
|
73,494
|
|
|
|
|
|
|
50,843
|
|
|
|
|
|
||||||||
Total liabilities
|
5,471,496
|
|
|
|
|
|
|
5,473,356
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
771,344
|
|
|
|
|
|
|
750,921
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
6,242,840
|
|
|
|
|
|
|
$
|
6,224,277
|
|
|
|
|
|
||||||
Net interest income (FTE)
|
|
|
$
|
44,715
|
|
|
|
|
|
|
$
|
45,345
|
|
|
|
||||||
Net interest margin (FTE)
|
|
|
|
|
3.17
|
%
|
|
|
|
|
|
3.19
|
%
|
||||||||
Net interest spread (FTE)
|
|
|
|
|
2.81
|
%
|
|
|
|
|
|
2.90
|
%
|
(1)
|
Interest on loans includes net fees on loans that are not material in amount.
|
(2)
|
For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.
|
|
Six Months Ended June 30, 2019 Compared to 2018
|
||||||||||
|
Change Attributable to
|
|
Total
|
||||||||
Fully Taxable-Equivalent Basis:
|
Average Volume
|
|
Average Yield/Rate
|
|
Change
|
||||||
Interest income on:
|
|
|
|
|
|
||||||
Loans
(1)
|
$
|
1,198
|
|
|
$
|
5,305
|
|
|
$
|
6,503
|
|
Loans held for sale
|
(8
|
)
|
|
6
|
|
|
(2
|
)
|
|||
Taxable investment securities
|
(320
|
)
|
|
97
|
|
|
(223
|
)
|
|||
Tax-exempt investment securities
(1)
|
(4,567
|
)
|
|
(1,192
|
)
|
|
(5,759
|
)
|
|||
Mortgage-backed securities
|
2,456
|
|
|
2,160
|
|
|
4,616
|
|
|||
Federal Home Loan Bank stock, at cost, and equity investments
|
(112
|
)
|
|
82
|
|
|
(30
|
)
|
|||
Interest earning deposits
|
(333
|
)
|
|
331
|
|
|
(2
|
)
|
|||
Federal funds sold
|
(104
|
)
|
|
70
|
|
|
(34
|
)
|
|||
Total earning assets
|
(1,790
|
)
|
|
6,859
|
|
|
5,069
|
|
|||
Interest expense on:
|
|
|
|
|
|
||||||
Savings accounts
|
7
|
|
|
121
|
|
|
128
|
|
|||
Certificates of deposits
|
(258
|
)
|
|
3,618
|
|
|
3,360
|
|
|||
Interest bearing demand accounts
|
(72
|
)
|
|
3,250
|
|
|
3,178
|
|
|||
Federal Home Loan Bank borrowings
|
(202
|
)
|
|
1,919
|
|
|
1,717
|
|
|||
Subordinated notes, net of unamortized debt issuance costs
|
5
|
|
|
—
|
|
|
5
|
|
|||
Trust preferred subordinated debentures, net of unamortized debt issuance costs
|
—
|
|
|
220
|
|
|
220
|
|
|||
Other borrowings
|
48
|
|
|
40
|
|
|
88
|
|
|||
Total interest bearing liabilities
|
(472
|
)
|
|
9,168
|
|
|
8,696
|
|
|||
Net change
|
$
|
(1,318
|
)
|
|
$
|
(2,309
|
)
|
|
$
|
(3,627
|
)
|
(1)
|
Interest yields on loans and securities that are nontaxable for federal income tax purposes are presented on a fully taxable-equivalent basis. See “Non-GAAP Financial Measures.”
|
|
Average Balances with Average Yields and Rates (Annualized)
|
||||||||||||||||||||
|
(unaudited)
|
||||||||||||||||||||
|
Six Months Ended
|
||||||||||||||||||||
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||||||||||
|
Avg Balance
|
|
Interest
|
|
Avg Yield/Rate
|
|
Avg Balance
|
|
Interest
|
|
Avg Yield/Rate
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans
(1)
|
$
|
3,342,244
|
|
|
$
|
85,769
|
|
|
5.17
|
%
|
|
$
|
3,293,090
|
|
|
$
|
79,266
|
|
|
4.85
|
%
|
Loans held for sale
|
1,292
|
|
|
28
|
|
|
4.37
|
%
|
|
1,669
|
|
|
30
|
|
|
3.62
|
%
|
||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable investment securities
(2)
|
3,000
|
|
|
55
|
|
|
3.70
|
%
|
|
23,022
|
|
|
278
|
|
|
2.44
|
%
|
||||
Tax-exempt investment securities
(2)
|
559,041
|
|
|
10,245
|
|
|
3.70
|
%
|
|
803,844
|
|
|
16,004
|
|
|
4.01
|
%
|
||||
Mortgage-backed and related securities
(2)
|
1,663,926
|
|
|
25,720
|
|
|
3.12
|
%
|
|
1,498,151
|
|
|
21,104
|
|
|
2.84
|
%
|
||||
Total securities
|
2,225,967
|
|
|
36,020
|
|
|
3.26
|
%
|
|
2,325,017
|
|
|
37,386
|
|
|
3.24
|
%
|
||||
Federal Home Loan Bank stock, at cost, and equity investments
|
53,034
|
|
|
795
|
|
|
3.02
|
%
|
|
60,831
|
|
|
825
|
|
|
2.73
|
%
|
||||
Interest earning deposits
|
65,357
|
|
|
797
|
|
|
2.46
|
%
|
|
99,848
|
|
|
799
|
|
|
1.61
|
%
|
||||
Federal funds sold
|
5,489
|
|
|
86
|
|
|
3.16
|
%
|
|
14,759
|
|
|
120
|
|
|
1.64
|
%
|
||||
Total earning assets
|
5,693,383
|
|
|
123,495
|
|
|
4.37
|
%
|
|
5,795,214
|
|
|
118,426
|
|
|
4.12
|
%
|
||||
Cash and due from banks
|
80,940
|
|
|
|
|
|
|
76,789
|
|
|
|
|
|
||||||||
Accrued interest and other assets
|
523,926
|
|
|
|
|
|
|
483,086
|
|
|
|
|
|
||||||||
Less: Allowance for loan losses
|
(25,943
|
)
|
|
|
|
|
|
(22,791
|
)
|
|
|
|
|
||||||||
Total assets
|
$
|
6,272,306
|
|
|
|
|
|
|
$
|
6,332,298
|
|
|
|
|
|
||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings accounts
|
$
|
362,947
|
|
|
520
|
|
|
0.29
|
%
|
|
$
|
357,073
|
|
|
392
|
|
|
0.22
|
%
|
||
Certificates of deposits
|
1,136,738
|
|
|
11,558
|
|
|
2.05
|
%
|
|
1,172,658
|
|
|
8,198
|
|
|
1.41
|
%
|
||||
Interest bearing demand accounts
|
1,976,205
|
|
|
10,620
|
|
|
1.08
|
%
|
|
1,995,214
|
|
|
7,442
|
|
|
0.75
|
%
|
||||
Total interest bearing deposits
|
3,475,890
|
|
|
22,698
|
|
|
1.32
|
%
|
|
3,524,945
|
|
|
16,032
|
|
|
0.92
|
%
|
||||
Federal Home Loan Bank borrowings
|
785,901
|
|
|
8,356
|
|
|
2.14
|
%
|
|
809,879
|
|
|
6,639
|
|
|
1.65
|
%
|
||||
Subordinated notes, net of unamortized debt issuance costs
|
98,448
|
|
|
2,810
|
|
|
5.76
|
%
|
|
98,287
|
|
|
2,805
|
|
|
5.76
|
%
|
||||
Trust preferred subordinated debentures, net of unamortized debt issuance costs
|
60,247
|
|
|
1,447
|
|
|
4.84
|
%
|
|
60,242
|
|
|
1,227
|
|
|
4.11
|
%
|
||||
Other borrowings
|
15,653
|
|
|
132
|
|
|
1.70
|
%
|
|
8,696
|
|
|
44
|
|
|
1.02
|
%
|
||||
Total interest bearing liabilities
|
4,436,139
|
|
|
35,443
|
|
|
1.61
|
%
|
|
4,502,049
|
|
|
26,747
|
|
|
1.20
|
%
|
||||
Noninterest bearing deposits
|
1,000,623
|
|
|
|
|
|
|
1,031,065
|
|
|
|
|
|
||||||||
Accrued expenses and other liabilities
|
81,167
|
|
|
|
|
|
|
47,034
|
|
|
|
|
|
||||||||
Total liabilities
|
5,517,929
|
|
|
|
|
|
|
5,580,148
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
754,377
|
|
|
|
|
|
|
752,150
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
6,272,306
|
|
|
|
|
|
|
$
|
6,332,298
|
|
|
|
|
|
||||||
Net interest income (FTE)
|
|
|
$
|
88,052
|
|
|
|
|
|
|
$
|
91,679
|
|
|
|
||||||
Net interest margin (FTE)
|
|
|
|
|
3.12
|
%
|
|
|
|
|
|
3.19
|
%
|
||||||||
Net interest spread (FTE)
|
|
|
|
|
2.76
|
%
|
|
|
|
|
|
2.92
|
%
|
(1)
|
Interest on loans includes net fees on loans that are not material in amount.
|
(2)
|
For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.
|
|
Three Months Ended
June 30, |
|
2019
|
|
Six Months Ended
June 30, |
|
2019
|
||||||||||||||||||||||
|
|
Change From
|
|
|
Change From
|
||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2018
|
|
2019
|
|
2018
|
|
2018
|
||||||||||||||||||
Deposit services
|
$
|
6,652
|
|
|
$
|
6,261
|
|
|
$
|
391
|
|
|
6.2
|
%
|
|
$
|
12,638
|
|
|
$
|
12,440
|
|
|
$
|
198
|
|
|
1.6
|
%
|
Net gain (loss) on sale of securities available for sale
|
416
|
|
|
(332
|
)
|
|
748
|
|
|
225.3
|
%
|
|
672
|
|
|
(1,159
|
)
|
|
1,831
|
|
|
158.0
|
%
|
||||||
Gain on sale of loans
|
181
|
|
|
173
|
|
|
8
|
|
|
4.6
|
%
|
|
274
|
|
|
288
|
|
|
(14
|
)
|
|
(4.9
|
)%
|
||||||
Trust fees
|
1,520
|
|
|
1,931
|
|
|
(411
|
)
|
|
(21.3
|
)%
|
|
3,061
|
|
|
3,691
|
|
|
(630
|
)
|
|
(17.1
|
)%
|
||||||
Bank owned life insurance
|
559
|
|
|
1,185
|
|
|
(626
|
)
|
|
(52.8
|
)%
|
|
1,103
|
|
|
1,817
|
|
|
(714
|
)
|
|
(39.3
|
)%
|
||||||
Brokerage services
|
477
|
|
|
506
|
|
|
(29
|
)
|
|
(5.7
|
)%
|
|
994
|
|
|
956
|
|
|
38
|
|
|
4.0
|
%
|
||||||
Other noninterest income
|
1,449
|
|
|
1,283
|
|
|
166
|
|
|
12.9
|
%
|
|
2,050
|
|
|
2,584
|
|
|
(534
|
)
|
|
(20.7
|
)%
|
||||||
Total noninterest income
|
$
|
11,254
|
|
|
$
|
11,007
|
|
|
$
|
247
|
|
|
2.2
|
%
|
|
$
|
20,792
|
|
|
$
|
20,617
|
|
|
$
|
175
|
|
|
0.8
|
%
|
|
Three Months Ended
June 30, |
|
2019
|
|
Six Months Ended
June 30, |
|
2019
|
||||||||||||||||||||||
|
|
Change From
|
|
|
Change From
|
||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2018
|
|
2019
|
|
2018
|
|
2018
|
||||||||||||||||||
Salaries and employee benefits
|
$
|
17,891
|
|
|
$
|
16,633
|
|
|
$
|
1,258
|
|
|
7.6
|
%
|
|
$
|
35,937
|
|
|
$
|
35,192
|
|
|
$
|
745
|
|
|
2.1
|
%
|
Net occupancy
|
3,289
|
|
|
3,360
|
|
|
(71
|
)
|
|
(2.1
|
)%
|
|
6,464
|
|
|
6,943
|
|
|
(479
|
)
|
|
(6.9
|
)%
|
||||||
Acquisition expense
|
—
|
|
|
1,026
|
|
|
(1,026
|
)
|
|
(100.0
|
)%
|
|
—
|
|
|
1,858
|
|
|
(1,858
|
)
|
|
(100.0
|
)%
|
||||||
Advertising, travel & entertainment
|
733
|
|
|
775
|
|
|
(42
|
)
|
|
(5.4
|
)%
|
|
1,580
|
|
|
1,460
|
|
|
120
|
|
|
8.2
|
%
|
||||||
ATM expense
|
246
|
|
|
243
|
|
|
3
|
|
|
1.2
|
%
|
|
426
|
|
|
589
|
|
|
(163
|
)
|
|
(27.7
|
)%
|
||||||
Professional fees
|
1,069
|
|
|
952
|
|
|
117
|
|
|
12.3
|
%
|
|
2,383
|
|
|
2,022
|
|
|
361
|
|
|
17.9
|
%
|
||||||
Software and data processing
|
1,086
|
|
|
939
|
|
|
147
|
|
|
15.7
|
%
|
|
2,162
|
|
|
1,962
|
|
|
200
|
|
|
10.2
|
%
|
||||||
Communications
|
489
|
|
|
478
|
|
|
11
|
|
|
2.3
|
%
|
|
976
|
|
|
1,016
|
|
|
(40
|
)
|
|
(3.9
|
)%
|
||||||
FDIC insurance
|
437
|
|
|
484
|
|
|
(47
|
)
|
|
(9.7
|
)%
|
|
859
|
|
|
981
|
|
|
(122
|
)
|
|
(12.4
|
)%
|
||||||
Amortization of intangibles
|
1,129
|
|
|
1,328
|
|
|
(199
|
)
|
|
(15.0
|
)%
|
|
2,308
|
|
|
2,706
|
|
|
(398
|
)
|
|
(14.7
|
)%
|
||||||
Other noninterest expense
|
3,331
|
|
|
3,056
|
|
|
275
|
|
|
9.0
|
%
|
|
6,232
|
|
|
6,212
|
|
|
20
|
|
|
0.3
|
%
|
||||||
Total noninterest expense
|
$
|
29,700
|
|
|
$
|
29,274
|
|
|
$
|
426
|
|
|
1.5
|
%
|
|
$
|
59,327
|
|
|
$
|
60,941
|
|
|
$
|
(1,614
|
)
|
|
(2.6
|
)%
|
|
Actual
|
|
For Capital
Adequacy Purposes
|
|
To Be Well Capitalized
Under Prompt
Corrective Actions
Provisions
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Amount
|
|||||||||
June 30, 2019
|
|
|||||||||||||||||||
Common Equity Tier 1 (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
$
|
571,770
|
|
|
14.02
|
%
|
|
$
|
183,470
|
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank Only
|
$
|
718,990
|
|
|
17.64
|
%
|
|
$
|
183,409
|
|
|
4.50
|
%
|
|
$
|
264,924
|
|
|
6.50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier 1 Capital (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
$
|
630,207
|
|
|
15.46
|
%
|
|
$
|
244,626
|
|
|
6.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank Only
|
$
|
718,990
|
|
|
17.64
|
%
|
|
$
|
244,545
|
|
|
6.00
|
%
|
|
$
|
326,060
|
|
|
8.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
$
|
755,261
|
|
|
18.52
|
%
|
|
$
|
326,168
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank Only
|
$
|
745,554
|
|
|
18.29
|
%
|
|
$
|
326,060
|
|
|
8.00
|
%
|
|
$
|
407,575
|
|
|
10.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier 1 Capital (to Average Assets)
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
$
|
630,207
|
|
|
10.48
|
%
|
|
$
|
240,487
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank Only
|
$
|
718,990
|
|
|
11.96
|
%
|
|
$
|
240,383
|
|
|
4.00
|
%
|
|
$
|
300,479
|
|
|
5.00
|
%
|
|
Actual
|
|
For Capital
Adequacy Purposes
|
|
To Be Well Capitalized
Under Prompt
Corrective Actions
Provisions
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
December 31, 2018
|
|
|||||||||||||||||||
Common Equity Tier 1 (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
$
|
568,283
|
|
|
14.77
|
%
|
|
$
|
173,174
|
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank Only
|
$
|
714,991
|
|
|
18.59
|
%
|
|
$
|
173,095
|
|
|
4.50
|
%
|
|
$
|
250,026
|
|
|
6.50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier 1 Capital (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
$
|
626,718
|
|
|
16.29
|
%
|
|
$
|
230,899
|
|
|
6.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank Only
|
$
|
714,991
|
|
|
18.59
|
%
|
|
$
|
230,793
|
|
|
6.00
|
%
|
|
$
|
307,725
|
|
|
8.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital (to Risk-Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
$
|
754,034
|
|
|
19.59
|
%
|
|
$
|
307,865
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank Only
|
$
|
743,900
|
|
|
19.34
|
%
|
|
$
|
307,725
|
|
|
8.00
|
%
|
|
$
|
384,656
|
|
|
10.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier 1 Capital (to Average Assets)
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Consolidated
|
$
|
626,718
|
|
|
10.64
|
%
|
|
$
|
235,689
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank Only
|
$
|
714,991
|
|
|
12.14
|
%
|
|
$
|
235,532
|
|
|
4.00
|
%
|
|
$
|
294,415
|
|
|
5.00
|
%
|
(1)
|
Refers to quarterly average assets as calculated in accordance with policies established by bank regulatory agencies.
|
|
Three Months Ended
June 30, |
||||
|
2019
|
|
2018
|
||
Return on average assets
|
1.20
|
%
|
|
1.30
|
%
|
Return on average shareholders’ equity
|
9.68
|
|
|
10.79
|
|
Dividend payout ratio – Basic
|
56.36
|
|
|
51.72
|
|
Dividend payout ratio – Diluted
|
56.36
|
|
|
52.63
|
|
Average shareholders’ equity to average total assets
|
12.36
|
|
|
12.06
|
|
|
Six Months Ended
June 30, |
||||
|
2019
|
|
2018
|
||
Return on average assets
|
1.20
|
%
|
|
1.16
|
%
|
Return on average shareholders’ equity
|
10.00
|
|
|
9.77
|
|
Dividend payout ratio – Basic
|
54.95
|
|
|
55.77
|
|
Dividend payout ratio – Diluted
|
54.95
|
|
|
55.77
|
|
Average shareholders’ equity to average total assets
|
12.03
|
|
|
11.88
|
|
|
|
|
|
|
|
|
Compared to
|
||||||||||
|
|
|
|
|
|
|
December 31, 2018
|
|
June 30,
2018 |
||||||||
|
June 30, 2019
|
|
December 31, 2018
|
|
June 30, 2018
|
|
Change (%)
|
|
Change (%)
|
||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction
|
$
|
579,565
|
|
|
$
|
507,732
|
|
|
$
|
487,286
|
|
|
14.1
|
%
|
|
18.9
|
%
|
1-4 family residential
|
782,073
|
|
|
794,499
|
|
|
791,359
|
|
|
(1.6
|
)%
|
|
(1.2
|
)%
|
|||
Commercial
|
1,251,248
|
|
|
1,194,118
|
|
|
1,245,936
|
|
|
4.8
|
%
|
|
0.4
|
%
|
|||
Commercial loans
|
389,521
|
|
|
356,649
|
|
|
282,723
|
|
|
9.2
|
%
|
|
37.8
|
%
|
|||
Municipal loans
|
357,028
|
|
|
353,370
|
|
|
345,595
|
|
|
1.0
|
%
|
|
3.3
|
%
|
|||
Loans to individuals
|
100,708
|
|
|
106,431
|
|
|
117,984
|
|
|
(5.4
|
)%
|
|
(14.6
|
)%
|
|||
Total loans
|
$
|
3,460,143
|
|
|
$
|
3,312,799
|
|
|
$
|
3,270,883
|
|
|
4.4
|
%
|
|
5.8
|
%
|
|
|
|
|
|
|
|
Compared to
|
||||||||||
|
|
|
|
|
|
|
December 31, 2018
|
|
June 30, 2018
|
||||||||
|
June 30,
2019 |
|
December 31, 2018
|
|
June 30,
2018 |
|
Change (%)
|
|
Change (%)
|
||||||||
Loans on nonaccrual:
|
|
|
|
|
|
|
|
|
|
||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
||||||||
Construction
|
$
|
200
|
|
|
$
|
12
|
|
|
$
|
119
|
|
|
1,566.7
|
%
|
|
68.1
|
%
|
1-4 family residential
|
1,418
|
|
|
2,202
|
|
|
1,795
|
|
|
(35.6
|
)%
|
|
(21.0
|
)%
|
|||
Commercial real estate
|
13,383
|
|
|
32,599
|
|
|
32,146
|
|
|
(58.9
|
)%
|
|
(58.4
|
)%
|
|||
Commercial
|
1,047
|
|
|
639
|
|
|
951
|
|
|
63.8
|
%
|
|
10.1
|
%
|
|||
Loans to individuals
|
328
|
|
|
318
|
|
|
340
|
|
|
3.1
|
%
|
|
(3.5
|
)%
|
|||
Total nonaccrual loans
(1)
|
16,376
|
|
|
35,770
|
|
|
35,351
|
|
|
(54.2
|
)%
|
|
(53.7
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||
Accruing loans past due more than 90 days
(1)
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
%
|
|
(100.0
|
)%
|
|||
Restructured loans
(2)
|
11,918
|
|
|
5,930
|
|
|
5,860
|
|
|
101.0
|
%
|
|
103.4
|
%
|
|||
Other real estate owned
|
1,069
|
|
|
1,206
|
|
|
1,137
|
|
|
(11.4
|
)%
|
|
(6.0
|
)%
|
|||
Repossessed assets
|
—
|
|
|
—
|
|
|
68
|
|
|
—
|
%
|
|
(100.0
|
)%
|
|||
Total nonperforming assets
|
$
|
29,363
|
|
|
$
|
42,906
|
|
|
$
|
42,423
|
|
|
(31.6
|
)%
|
|
(30.8
|
)%
|
Asset quality ratios:
|
|
|
|
|
|
|||
Nonaccruing loans to total loans
|
0.47
|
%
|
|
1.08
|
%
|
|
1.08
|
%
|
Allowance for loan losses to nonaccruing loans
|
150.86
|
|
|
75.54
|
|
|
70.92
|
|
Allowance for loan losses to nonperforming assets
|
84.14
|
|
|
62.97
|
|
|
59.10
|
|
Allowance for loan losses to total loans
|
0.71
|
|
|
0.82
|
|
|
0.77
|
|
Nonperforming assets to total assets
|
0.46
|
|
|
0.70
|
|
|
0.68
|
|
Net charge-offs to average loans
|
0.24
|
|
|
0.07
|
|
|
0.04
|
|
|
|
|
|
|
|
Incorporated by Reference
|
||||||
Exhibit Number
|
|
Exhibit Description
|
|
Filed Herewith
|
|
Exhibit
|
|
Form
|
|
Filing Date
|
|
File No.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
Articles of Incorporation and Bylaws
|
|
|
|
|
|
|
|
|
|
|
3.1
|
|
|
|
|
3.1
|
|
8-K
|
|
05/14/2018
|
|
0-12247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.2
|
|
|
|
|
3.1
|
|
8-K
|
|
02/22/2018
|
|
0-12247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31)
|
|
Rule 13a-14(a)/15d-14(a) Certifications
|
|
|
|
|
|
|
|
|
|
|
31.1
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.2
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(32)
|
|
Section 1350 Certification
|
|
|
|
|
|
|
|
|
|
|
†32
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(101)
|
|
Interactive Date File
|
|
|
|
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
104
|
|
The cover page of Southside Bancshares, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, formatted in Inline XBRL (included within the Exhibit 101 attachments).
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
† The certification attached as Exhibit 32 accompanies this Quarterly Report on Form 10-Q and is “furnished” to the Commission pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed “filed” by us for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
|
|
|
SOUTHSIDE BANCSHARES, INC.
|
|
|
|
|
|
DATE:
|
August 1, 2019
|
BY:
|
/s/ Lee R. Gibson
|
|
|
|
Lee R. Gibson, CPA
|
|
|
|
President and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DATE:
|
August 1, 2019
|
BY:
|
/s/ Julie N. Shamburger
|
|
|
|
Julie N. Shamburger, CPA
|
|
|
|
Senior Executive Vice President and Chief Financial Officer
|
|
|
|
(Principal Financial and Accounting Officer)
|
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