0001458412-19-000011 | 10-Q | XBRL Viewer | Crossfirst Bankshares INC

Change in unrealized depreciation on available-for-sale securities

9,256

(17,107)

^[1]

9,557,054

Issuance of shares from equity based awards (in shares)

132,915

$ 95

^[1]

132,868

(48)

^[1]

284,078

Retired Shares (in shares)

(1,651)

$ 3

^[1]

(1,653)

(1)

^[1]

(265,908)

Retired shares

(3,790)

$ (3)

^[1]

(2,534)

(1,253)

Preferred dividends declared

(1,575)

$ 4,386

Ending balance at Sep. 30, 2018

127

409,780

$ 12

$ 402

^[1]

389,310

30,329

(192)

(10,081)

Ending balance (in shares) at Sep. 30, 2018

1,200,000

40,261,480

^[1]

Beginning balance (in shares) at Jun. 30, 2018

1,200,000

35,496,278

^[1]

Beginning balance at Jun. 30, 2018

342,537

$ 12

$ 355

^[1]

321,544

25,778

(191)

(4,961)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Change in unrealized depreciation on available-for-sale securities

6,354

(5,120)

^[1]

5,031,110

Issuance of shares from equity based awards (in shares)

69,758

$ 50

^[1]

69,733

(25)

^[1]

Retired Shares (in shares)

$ 0

^[1]

^[1]

(265,908)

Retired shares

(3,790)

$ (3)

^[1]

(2,534)

(1,253)

Preferred dividends declared

(525)

(1)

527

Ending balance at Sep. 30, 2018

409,780

$ 12

$ 402

^[1]

389,310

30,329

(192)

(10,081)

Ending balance (in shares) at Sep. 30, 2018

1,200,000

40,261,480

^[1]

Beginning balance (in shares) at Dec. 31, 2018

1,200,000

45,074,322

^[1]

Beginning balance at Dec. 31, 2018

490,336

$ 12

$ 451

^[1]

454,512

38,567

(196)

(3,010)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Change in unrealized depreciation on available-for-sale securities

29,173

20,842

^[1]

6,851,213

Issuance of shares from equity based awards (in shares)

88,937

$ 68

^[1]

88,869

^[1]

53,668

Retired Shares (in shares)

(245)

$ 1

^[1]

(246)

(1,200,000)

(10,000)

^[1]

Retired shares

(30,155)

$ (12)

$ 0

^[1]

(30,088)

(55)

Preferred dividends declared

(175)

117

112

3,569

Ending balance at Sep. 30, 2019

602,435

$ 0

$ 520

^[1]

518,816

65,282

(84)

17,901

Ending balance (in shares) at Sep. 30, 2019

51,969,203

^[1]

Beginning balance (in shares) at Jun. 30, 2019

45,367,641

^[1]

Beginning balance at Jun. 30, 2019

499,195

$ 0

$ 453

^[1]

430,347

54,899

(83)

13,579

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Change in unrealized depreciation on available-for-sale securities

10,384

4,322

^[1]

6,600,245

Issuance of shares from equity based awards (in shares)

87,220

$ 67

^[1]

87,154

(1)

^[1]

1,317

(10)

$ 0

^[1]

(10)

(1)

$ 1,324

Ending balance at Sep. 30, 2019

$ 602,435

$ 0

$ 520

^[1]

$ 518,816

$ 65,282

$ (84)

$ 17,901

Ending balance (in shares) at Sep. 30, 2019

51,969,203

^[1]

[1]	Share data has been adjusted to reflect a 2-for-1 stock split effected in the form of a dividend on December 21, 2018.

Consolidated Statements of Stockholders' Equity - Unaudited (Parenthetical)	Dec. 21, 2018
Statement of Stockholders' Equity [Abstract]
Stock split ratio	2

Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating Activities
Net income	$ 29,173	$ 9,256
Depreciation and amortization	4,015	3,299
Provision for loan losses	10,550	9,000
Accretion of discounts and amortization of premiums on securities	4,098	4,134
Equity based compensation	3,606	4,513
(Gain) loss on disposal of fixed assets	64	(4)
Gain on sale of loans	(207)	(618)
Deferred income taxes	2,088	(1,105)
Net increase in bank owned life insurance	(1,416)	(1,511)
Net realized gains on available-for-sale securities	(539)	(608)
Impairment of assets held for sale	424	171
Dividends on FHLB stock	(797)	(713)
Stock dividends on CRA mutual fund	(38)	(34)
Changes in
Interest receivable	(1,817)	(2,105)
Other assets	(7,795)	(170)
Other liabilities	13,261	4,237
Net cash provided by operating activities	54,670	27,742
Investing Activities
Net change in loans	(576,897)	(741,784)
Purchases of available-for-sale securities	(157,492)
Purchases of available-for-sale securities		(198,214)
Proceeds from maturities of available-for-sale securities	48,658	35,755
Proceeds from sale of available-for-sale securities	63,515	149,271
Purchase of premises and equipment	(649)	(41,268)
Purchase of restricted equity securities	(1,673)	(1,300)
Proceeds from the sale of fixed assets	3,324	1,862
Proceeds from sale of restricted equity securities	941	942
Net cash used in investing activities	(620,273)	(794,736)
Financing Activities
Net increase in demand deposits, savings, NOW and money market accounts	237,934	456,487
Net increase in time deposits	212,077	46,729
Net increase (decrease) in repurchase agreements and fed funds purchased	(50,596)	77,479
Net increase in federal funds sold	25,000	55,000
Proceeds from line of credit	0	30,000
Repayment of line of credit	0	(30,000)
Proceeds from Federal Home Loan Bank advances	45,000	28,000
Repayment of Federal Home Loan Bank advances	(50,181)	(10,171)
Net repayments of Federal Home Loan Bank line of credit	0	(25,000)
Retirement of preferred stock	(30,000)	0
Issuance of common shares, net of issuance cost	88,390	132,550
Proceeds from employee stock purchase plan	547	367
Common stock purchased and retired	(155)	(3,790)
Acquisition of common stock for tax withholding obligations	(245)	(1,651)
Net decrease in employee receivables	117	72
Dividends paid on preferred stock	(700)	(1,575)
Net cash provided by financing activities	477,188	754,497
Decrease in Cash and Cash Equivalents	(88,415)	(12,497)
Cash and Cash Equivalents, Beginning of Period	216,541	130,820
Cash and Cash Equivalents, End of Period	128,126	118,323
Supplemental Cash Flows Information
Interest paid	54,998	31,437
Income taxes paid	1,030	19
Foreclosed assets in settlement of loans	2,471	0
Dividends declared and unpaid on preferred stock	$ 0	$ 525

Nature of Operations and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Nature of Operations and Summary of Significant Accounting Policies

Organization and Nature of Operations

CrossFirst Bankshares, Inc. (the ‘‘Company’’), a Kansas corporation, was incorporated in December 2017. Prior to incorporation, the Company was registered as a limited liability company under the name CrossFirst Holdings, LLC. The Company is a bank holding company whose principal activities are the ownership and management of its wholly-owned subsidiaries, CrossFirst Bank (the ‘‘Bank’’) and CFSA, LLC (“CFSA”), which holds title to certain assets. In addition, CrossFirst Investments, Inc. (‘‘CFI’’) is a wholly-owned subsidiary of the Bank, which holds investments in marketable securities.

Basis of Presentation

The Company’s accounting and reporting policies conform to accounting principles generally accepted in the United States (‘‘GAAP’’). The consolidated financial statements include the accounts of the Company; the Bank, CFI and CFSA. All significant intercompany accounts and transactions have been eliminated in consolidation.

The consolidated interim financial statements are unaudited and certain information and footnote disclosures presented in accordance with GAAP have been condensed or omitted and should be read in conjunction with the Company’s consolidated financial statements, and notes thereto, for the six-months ended June 30, 2019 and year ended December 31, 2018 included in the Company’s prospectus, dated August 14, 2019, filed with the Securities and Exchange Commission (‘‘SEC’’) pursuant to Rule 424(b) of the Securities Act of 1933, as amended, on August 15, 2019, related to the Company’s initial public offering (the ‘‘IPO Prospectus’’).

In the opinion of management, the interim financial statements include all adjustments all of which are of a normal, recurring nature necessary for the fair presentation of the financial position, results of operations, and cash flows of the Company and the disclosures made are adequate to make the interim financial information not misleading. The consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q adopted by the SEC.

There have been no significant changes in the accounting policies of the Company since June 30, 2019, the most recent date financial statements were provided within the IPO Prospectus. The information contained in the financial statements and footnotes for the period ended June 30, 2019 included in the Company’s IPO Prospectus should be referred to in connection with these unaudited interim consolidated financial statements.

Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.

Use of Estimates

The Company has identified accounting policies and estimates that, due to the difficult, subjective or complex judgments and assumptions inherent in those policies and estimates and the potential sensitivity of the Company’s financial statements to those judgments and assumptions, are critical to an understanding of the Company’s financial condition and results of operations. Actual results could differ from those estimates. The Allowance for Loan and Lease Losses, Investment Securities Impairment, Deferred Tax Asset, and Fair Value of Financial Instruments are particularly susceptible to significant change.

Change in Presentation Due to Stock Split

On December 18, 2018, the Company announced a 2-for-1 stock split, effected in the form of a dividend, effective December 21, 2018. Share data and per share data were retroactively adjusted for the periods presented to reflect the change in capital structure.

Cash Equivalents

The Company had $85.0 million of cash and cash equivalents at the Federal Reserve Bank of Kansas City as of September 30, 2019. The reserve required at September 30, 2019 was approximately $63.3 million. In addition, the

Company is at times required to place cash collateral with a third party as part of its back-to-back swap agreements. At September 30, 2019, approximately $18.2 million was required as cash collateral.

Initial Public Offering

On August 19, 2019, the Company completed its initial public offering of common shares. The Company issued and sold 5,750,000 common shares at a public offering price of $14.50 per share. After deducting the underwriting discounts and offering expenses, the Company received total net proceeds of $75.6 million from the initial public offering. In addition, certain selling stockholders participated in the offering and sold an aggregate of 1,261,589 common shares at a public offering price of $14.50 per share. The Company did not receive any proceeds from the sales of shares by the selling stockholders.

On September 17, 2019, the underwriters partially exercised their option to purchase additional shares. The Company issued and sold 844,362 common shares at a public offering price of $14.50 per share. After deducting the underwriting discounts and offering expenses, the Company received total net proceeds of $11.4 million.

As of September 30, 2019, the Company qualified as an emerging growth company (‘‘EGC’’) under the Jumpstart Our Business Startups Act of 2012 (the ‘‘JOBS Act’’). An EGC may take advantage of reduced reporting requirements and is relieved of certain other significant requirements that are otherwise generally applicable to public companies. Amongst the reductions and reliefs, the Company elected to extend the transition period for complying with new or revised accounting standards affecting public companies. This means that the financial statements the Company files or furnishes, will not be subject to all new or revised accounting standards generally applicable to public companies for the transition period for so long as the Company remains an EGC or until the Company affirmatively and irrevocably opt out of the extended transition period under the JOBS Act.

Recent Accounting Pronouncements

The Company has implemented the following Accounting Standards Updates (‘‘ASU’’) during 2019:



Standard	Date of Adoption	Description	Effect on Financial Statements or Other Significant Matters
ASU 2016-01 - Financial Instruments-Overall (Subtopic 825-10)	January 2019	Required equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Emphasized the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities should not make use of practicability exceptions in determining the fair value of loans.	The Company transferred $68.7 thousand from accumulated other comprehensive loss to retained earnings in January 2019. There was no impact to the income statement on the adoption date.
ASU 2014-09 - Revenue from Contracts with Customers	January 2019	Amended guidance related to revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Replaced nearly all existing revenue recognition guidance, including industry-specific guidance, established a new control-based revenue recognition model, changed the basis for deciding when revenue is recognized over time or at a point in time, provided new and more detailed guidance on specific topics and expands and improves disclosures about revenue.	The accounting update did not materially impact the financial statements or recognition of revenues. The update did not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, which comprises a significant portion of the Company’s revenue stream. In addition, the Company’s non-interest income is generated by customer transactions or through the passage of time and as a result the pattern or timing of income recognition was not impacted.

The Company has updates to the following ASUs that have not yet been adopted. A complete list of recent, applicable accounting pronouncements was provided in the IPO Prospectus:

Earnings Per Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Earnings Per Share

The following table presents the computation of basic and diluted earnings per share:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(Dollars in thousands)
Earnings per Share
Net income	$	10,384	$	6,354	$	29,173	$	9,256
Less: preferred stock dividends	—		525		175		1,575
Net income available to common stockholders	$	10,384	$	5,829	$	28,998	$	7,681
Weighted average common shares⁽¹⁾	48,351,553		37,790,614		46,239,021		33,918,540
Earnings per share	$	0.22	$	0.15	$	0.63	$	0.23
Dilutive Earnings Per Share
Net income available to common stockholders	$	10,384	$	5,829	$	28,998	$	7,681
Weighted average common shares⁽¹⁾	48,351,553		37,790,614		46,239,021		33,918,540
Effect of dilutive shares⁽¹⁾	812,996		988,010		842,706		1,133,888
Weighted average dilutive common shares⁽¹⁾	49,164,549		38,778,624		47,081,727		35,052,428
Diluted earnings per share	$	0.21	$	0.15	$	0.61	$	0.22

SARs, RSUs, RSAs, PRSUs, PSSs not included because to do so would be antidilutive⁽¹⁾	541,556		442,452		507,167		273,180

¹ Share data has been adjusted to reflect a 2-for-1 stock split effected in the form of a dividend on December 21, 2018.

Securities

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Securities

Available-for-Sale Debt and Equity Securities

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of period end available-for-sale debt and equity securities consisted of the following:



	September 30, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Approximate Fair Value
	(Dollars in thousands)
Available-for-sale debt securities
Mortgage-backed - GSE residential	$	158,897	$	2,009	$	192	$	160,714
Collateralized mortgage obligations - GSE residential	147,917		1,002		244		148,675
State and political subdivisions	398,963		21,051		5		420,009
Corporate bonds	1,444		92		—		1,536
Total available-for-sale debt securities	707,221		24,154		441		730,934
Equity securities
Mutual funds	2,179		—		20		2,159
Total equity securities	2,179		—		20		2,159
Total available-for-sale securities	$	709,400	$	24,154	$	461	$	733,093



	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Approximate Fair Value
	(Dollars in thousands)
Available-for-sale debt securities
Mortgage-backed - GSE residential	$	131,215	$	162	$	2,090	$	129,287
Collateralized mortgage obligations - GSE residential	154,110		287		1,771		152,626
State and political subdivisions	378,595		3,908		4,445		378,058
Corporate bonds	1,613		70		26		1,657
Total available-for-sale debt securities	665,533		4,427		8,332		661,628
Equity securities
Mutual funds	2,141		—		91		2,050
Total equity securities	2,141		—		91		2,050
Total available-for-sale securities	$	667,674	$	4,427	$	8,423	$	663,678

The carrying value of securities pledged as collateral was $36.6 million and $108.6 million at September 30, 2019 and December 31, 2018, respectively.

The amortized cost and fair value of available-for-sale debt securities at September 30, 2019, by contractual maturity, are shown below:



	September 30, 2019
	Within		After One to		After Five to		After
	One Year		Five Years		Ten Years		Ten Years		Total
	(Dollars in thousands)
Available-for-sale debt securities
Mortgage-backed - GSE residential⁽¹⁾
Amortized cost	$	—	$	—	$	1,411	$	157,486	$	158,897
Estimated fair value	—		—		1,471		159,243		160,714
Collateralized mortgage obligations - GSE residential⁽¹⁾
Amortized cost	—		—		2,876		145,041		147,917
Estimated fair value	—		—		3,011		145,664		148,675
State and political subdivisions
Amortized cost	—		3,580		40,410		354,973		398,963
Estimated fair value	—		3,674		43,071		373,264		420,009
Corporate bonds
Amortized cost	—		—		1,444		—		1,444
Estimated fair value	—		—		1,536		—		1,536
Total available-for-sale debt securities
Amortized cost	—		3,580		46,141		657,500		707,221
Estimated fair value	$	—	$	3,674	$	49,089	$	678,171	$	730,934
⁽¹⁾ Actual maturities may differ from contractual maturities because issuers may have the rights to call or prepay obligations with or without prepayment penalties.

The following tables show gross unrealized losses, the number of securities that are in an unrealized loss position, and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2019 and December 31, 2018:



	September 30, 2019
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses		Number of Securities
	(Dollars in thousands)
Available-for-Sale Debt Securities
Mortgage-backed - GSE residential	$	3,988	$	4	1	$	27,889	$	188	5	$	31,877	$	192	6
Collateralized mortgage obligations - GSE residential	48,851		149		6	9,792		95		10	58,643		244		16
State and political subdivisions	2,952		4		3	146		1		1	3,098		5		4
Corporate bonds	—		—		0	—		—		0	—		—		0
Total temporarily impaired debt securities	$	55,791	$	157	10	$	37,827	$	284	16	$	93,618	$	441	26



	December 31, 2018
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses		Number of Securities
	(Dollars in thousands)
Available-for-Sale Debt Securities
Mortgage-backed - GSE residential	$	66,232	$	369	10	$	44,280	$	1,721	11	$	110,512	$	2,090	21
Collateralized mortgage obligations - GSE residential	4,639		42		1	68,362		1,729		20	73,001		1,771		21
State and political subdivisions	85,181		1,210		68	97,721		3,235		74	182,902		4,445		142
Corporate bonds	723		26		1	—		—		0	723		26		1
Total temporarily impaired debt securities	$	156,775	$	1,647	80	$	210,363	$	6,685	105	$	367,138	$	8,332	185

The unrealized losses on the Company’s investments in state and political subdivisions were caused by interest rate changes and adjustments in credit ratings. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The unrealized losses on the Company’s investments in collateralized mortgage-backed securities and corporate bonds were caused by interest rate changes and market assumptions about prepayment speeds.

The Company expects to recover the amortized cost basis over the term of the securities, excluding a previously disclosed impaired security. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired (‘‘OTTI’’) at September 30, 2019.

Gross gains of $506.2 thousand and $2.0 million and gross losses of $39.4 thousand and $1.4 million resulting from sales of available-for-sale securities were realized for the nine-months ended September 30, 2019 and 2018, respectively.

Equity Securities

Equity securities consist of Community Reinvestment Act mutual funds. The fair value of the equity securities was $2.2 million and $2.1 million at September 30, 2019 and December 31, 2018, respectively. Prior to January 1, 2019, equity securities were stated at fair value with unrealized gains and losses reported as a separate component of accumulated other comprehensive income, net of tax. A net unrealized loss of $68.7 thousand had been recognized in accumulated other comprehensive income as of December 31, 2018. On January 1, 2019, the unrealized loss was reclassified out of accumulated other comprehensive income and into retained earnings with subsequent changes in fair value being recognized in other non-interest income. The following is a summary of the recorded fair value and the unrealized and realized gains and losses recognized in net income on available-for-sale equity securities:



	September 30, 2019
	Three months ended		Nine months ended
	(Dollars in thousands)
Net gains recognized during the period on equity securities	$	16	$	72
Less: net gains recognized during the period on equity securities sold during the period	—		—
Unrealized gain recognized during the reporting period on equity securities still held at the reporting date	$	16	$	72

Loans and Allowance for Loan Leases

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Loans and Allowance for Loan Losses

Categories of loans at September 30, 2019 and December 31, 2018 include:



	September 30, 2019		December 31, 2018
	(Dollars in thousands)
Commercial	$	1,312,647	$	1,134,414
Energy	396,132		358,283
Commercial real estate	993,153		846,561
Construction and land development	527,582		440,032
Residential real estate	365,435		246,275
Equity lines of credit	22,192		20,286
Consumer installment	21,552		23,528
Gross loans	3,638,693		3,069,379
Less: Allowance for loan losses	42,995		37,826
Less: Net deferred loan fees and costs	8,901		8,632
Net loans	$	3,586,797	$	3,022,921

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the loan balance is not collectible. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of its ability to collect the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers unclassified loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process and loan categories. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data.

The following tables summarize the activity in the allowance for loan losses by portfolio segment and disaggregated based on the Company’s impairment methodology. The allocation in one portfolio segment does not preclude its availability to absorb losses in other segments:



	Commercial			Energy			Commercial Real Estate			Construction and Land Development		Residential Real Estate		Equity Lines of Credit		Consumer Installment			Total
	(Dollars in thousands)
Three months ended September 30, 2019
Allowance for loan losses
Beginning balance	$	22,975		$	7,300		$	7,533		$	2,602	$	2,138	$	155	$	149		$	42,852
Provision charged to expense	3,535			1,077			(249		)	414		82		5		(14		)	4,850
Charge-offs	(1,700		)	(3,000		)	—			—		—		—		(8		)	(4,708		)
Recoveries	1			—			—			—		—		—		—			1
Ending balance	$	24,811		$	5,377		$	7,284		$	3,016	$	2,220	$	160	$	127		$	42,995



	Commercial			Energy		Commercial Real Estate		Construction and Land Development		Residential Real Estate		Equity Lines of Credit		Consumer Installment			Total
	(Dollars in thousands)
Three months ended September 30, 2018
Allowance for loan losses
Beginning balance	$	11,739		$	7,957	$	6,584	$	2,530	$	1,103	$	170	$	114		$	30,197
Provision charged to expense	1,102			1,184		315		137		261		4		(3		)	3,000
Charge-offs	(97		)	—		—		—		—		—		—			(97		)
Recoveries	439			—		—		—		—		—		1			440
Ending balance	$	13,183		$	9,141	$	6,899	$	2,667	$	1,364	$	174	$	112		$	33,540



	Commercial			Energy			Commercial Real Estate		Construction and Land Development		Residential Real Estate		Equity Lines of Credit		Consumer Installment			Total
	(Dollars in thousands)
Nine months ended September 30, 2019
Allowance for loan losses
Beginning balance	$	16,584		$	10,262		$	6,755	$	2,475	$	1,464	$	159	$	127		$	37,826
Provision charged to expense	11,166			(2,461		)	529		541		756		1		18			10,550
Charge-offs	(2,954		)	(3,000		)	—		—		—		—		(19		)	(5,973		)
Recoveries	15			576			—		—		—		—		1			592
Ending balance	$	24,811		$	5,377		$	7,284	$	3,016	$	2,220	$	160	$	127		$	42,995



	Commercial			Energy			Commercial Real Estate		Construction and Land Development		Residential Real Estate		Equity Lines of Credit			Consumer Installment			Total
	(Dollars in thousands)
Nine months ended September 30, 2018
Allowance for loan losses
Beginning balance	$	11,378		$	7,726		$	4,668	$	1,200	$	905	$	122		$	92		$	26,091
Provision charged to expense	2,031			2,671			2,231		1,467		459		77			64			9,000
Charge-offs	(681		)	(1,256		)	—		—		—		(25		)	(45		)	(2,007		)
Recoveries	455			—			—		—		—		—			1			456
Ending balance	$	13,183		$	9,141		$	6,899	$	2,667	$	1,364	$	174		$	112		$	33,540



	Commercial		Energy		Commercial Real Estate		Construction and Land Development		Residential Real Estate		Equity Lines of Credit		Consumer Installment		Total
	(Dollars in thousands)
September 30, 2019
Ending balance
Individually evaluated for impairment	$	10,398	$	854	$	343	$	—	$	219	$	—	$	—	$	11,814
Collectively evaluated for impairment	$	14,413	$	4,523	$	6,941	$	3,016	$	2,001	$	160	$	127	$	31,181
Allocated to loans:
Individually evaluated for impairment	$	66,162	$	10,226	$	16,544	$	—	$	2,537	$	—	$	—	$	95,469
Collectively evaluated for impairment	$	1,246,485	$	385,906	$	976,609	$	527,582	$	362,898	$	22,192	$	21,552	$	3,543,224
Ending balance	$	1,312,647	$	396,132	$	993,153	$	527,582	$	365,435	$	22,192	$	21,552	$	3,638,693



	Commercial		Energy		Commercial Real Estate		Construction and Land Development		Residential Real Estate		Equity Lines of Credit		Consumer Installment		Total
	(Dollars in thousands)
December 31, 2018
Ending balance
Individually evaluated for impairment	$	5,814	$	3,108	$	473	$	—	$	5	$	—	$	—	$	9,400
Collectively evaluated for impairment	$	10,770	$	7,154	$	6,282	$	2,475	$	1,459	$	159	$	127	$	28,426
Allocated to loans:
Individually evaluated for impairment	$	78,147	16,250		$	15,227	$	—	$	2,027	$	—	$	—	$	111,651
Collectively evaluated for impairment	$	1,056,267	$	342,033	$	831,334	$	440,032	$	244,248	$	20,286	$	23,528	$	2,957,728
Ending balance	$	1,134,414	$	358,283	$	846,561	$	440,032	$	246,275	$	20,286	$	23,528	$	3,069,379

Credit Risk Profile

The Company analyzes its loan portfolio based on an internal rating category (grades 1 - 8), portfolio segment and payment activity. These categories are utilized to develop the associated allowance for loan losses. A description of the loan grades and segments follows:

Loan Grades


•	Pass & Watch (risk rating 1 - 4) - Considered satisfactory. Includes borrowers that generally maintain good liquidity and financial condition or the credit is currently protected with sales trends remaining flat or declining. Most ratios compare favorably with industry norms and Company policies. Debt is programmed and timely repayment is expected.

•

Special Mention (risk rating 5) - Borrowers generally exhibit adverse trends in operations or an imbalanced position in their balance sheet that has not reached a point where repayment is jeopardized. Credits are currently protected but, if left uncorrected, the potential weaknesses may result in deterioration of the repayment prospects for the credit or in the Company’s credit or lien position at a future date. These credits are not adversely classified and do not expose the Company to enough risk to warrant adverse classification.

•

Substandard (risk rating 6) - Credits generally exhibit a well-defined weakness(es) that jeopardize repayment. Credits are inadequately protected by the current worth and paying capacity of the obligor or of the collateral pledged. A distinct possibility exists that the Company will sustain some loss if deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard.

•

Doubtful (risk rating 7) - Credits which exhibit weaknesses inherent in a substandard credit with the added characteristic that these weaknesses make collection or liquidation in full highly questionable and improbable based on existing facts, conditions and values. Because of reasonably specific pending factors, which may work to the advantage and strengthening of the assets, classification as a loss is deferred until its more exact status may be determined.


•	Loss (risk rating 8) - Credits which are considered uncollectible or of such little value that their continuance as a bankable asset is not warranted.

Loan Portfolio Segments


•	Commercial - Includes loans to commercial customers for use in financing working capital needs, equipment purchases and expansions. Repayment is primarily from the cash flow of a borrower’s principal business operation. Credit risk is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations.

•

Energy - Includes loans to oil and natural gas customers for use in financing working capital needs, exploration and production activities, and acquisitions. The loans in this category are repaid primarily from the conversion of crude oil and natural gas to cash. Credit risk is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations.

•

Commercial Real Estate - Loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Credit risk may be impacted by the creditworthiness of a borrower, property values and the local economies in the company’s market areas.

•

Construction and Land Development - Loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. Credit risk may be impacted by the creditworthiness of a borrower, property values and the local economies in the company’s market areas.

•

Residential Real Estate - The loans are generally secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans can be impacted by economic conditions within or outside the company’s market areas that might impact either property values or a borrower’s personal income. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over many borrowers.

•

Equity Lines of Credit - The loans are revolving lines of credit extended to consumers secured through a first or second mortgage on their personal residence. Repayment is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans may be impacted by economic conditions within the company’s market areas that may impact either property values or a borrower’s personal income.

•

Consumer Installment - The loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment comes from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s market area) and the creditworthiness of a borrower.

The following tables present the credit risk profile of the Company’s loan portfolio based on an internal rating category (grades 1 - 8), portfolio segment and payment activity:



	Pass & Watch		Special Mention		Substandard		Doubtful		Loss		Total
	(Dollars in thousands)
September 30, 2019
Commercial	$	1,217,280	$	29,350	$	66,017	$	—	$	—	$	1,312,647
Energy	378,533		10,342		2,580		4,677		—		396,132
Commercial real estate	976,262		7,529		8,402		960		—		993,153
Construction and land development	527,582		—		—		—		—		527,582
Residential real estate	362,625		273		2,537		—		—		365,435
Equity lines of credit	22,192		—		—		—		—		22,192
Consumer installment	21,552		—		—		—		—		21,552
	$	3,506,026	$	47,494	$	79,536	$	5,637	$	—	$	3,638,693



	Pass & Watch		Special Mention		Substandard		Doubtful		Loss		Total
	(Dollars in thousands)
December 31, 2018
Commercial	$	1,056,505	$	—	$	73,824	$	4,085	$	—	$	1,134,414
Energy	339,720		5,376		13,187		—		—		358,283
Commercial real estate	831,290		6,950		7,209		1,112		—		846,561
Construction and land development	440,032		—		—		—		—		440,032
Residential real estate	244,178		70		2,027		—		—		246,275
Equity lines of credit	20,286		—		—		—		—		20,286
Consumer installment	23,528		—		—		—		—		23,528
	$	2,955,539	$	12,396	$	96,247	$	5,197	$	—	$	3,069,379

The Company evaluates the loan risk grading system definitions, portfolio segment definitions and allowance for loan loss methodology on an ongoing basis. No significant changes were made to either during the past year.

Loan Portfolio Aging Analysis

The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of September 30, 2019 and December 31, 2018:



	30-59 Days Past Due		60-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Loans Receivable		Loans >= 90 Days and Accruing
	(Dollars in thousands)
September 30, 2019
Commercial	$	42,039	$	2,785	$	1,101	$	45,925	$	1,266,722	$	1,312,647	$	—
Energy	7,122		—		5,319		12,441		383,691		396,132		642
Commercial real estate	317		—		93		410		992,743		993,153		—
Construction and land development	12,345		—		—		12,345		515,237		527,582		—
Residential real estate	68		—		2,012		2,080		363,355		365,435		—
Equity lines of credit	—		—		—		—		22,192		22,192		—
Consumer installment	50		—		—		50		21,502		21,552		—
	$	61,941	$	2,785	$	8,525	$	73,251	$	3,565,442	$	3,638,693	$	642



	30-59 Days Past Due		60-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Loans Receivable		Loans >= 90 Days and Accruing
	(Dollars in thousands)
December 31, 2018
Commercial	$	1,040	$	—	$	4,137	$	5,177	$	1,129,237	$	1,134,414	$	—
Energy	1,994		—		9,218		11,212		347,071		358,283		—
Commercial real estate	—		425		2,253		2,678		843,883		846,561		—
Construction and land development	—		—		—		—		440,032		440,032		—
Residential real estate	28		194		—		222		246,053		246,275		—
Equity lines of credit	—		—		—		—		20,286		20,286		—
Consumer installment	—		—		—		—		23,528		23,528		—
	$	3,062	$	619	$	15,608	$	19,289	$	3,050,090	$	3,069,379	$	—

Impaired Loans

A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. The intent of concessions is to maximize collection.

Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans.

The following tables present impaired loans for the periods ended September 30, 2019 and December 31, 2018:



			Unpaid
	Recorded Balance		Principal Balance		Specific Allowance
	(Dollars in thousands)
September 30, 2019
Loans without a specific valuation
Commercial	$	25,770	$	25,770	$	—
Energy	2,969		2,969		—
Commercial real estate	12,501		12,501		—
Construction and land development	—		—		—
Residential real estate	2,195		2,195		—
Equity lines of credit	—		—		—
Consumer installment	—		—		—
Loans with a specific valuation
Commercial	40,392		40,392		10,398
Energy	7,257		7,257		854
Commercial real estate	4,043		4,043		343
Construction and land development	—		—		—
Residential real estate	342		342		219
Equity lines of credit	—		—		—
Consumer installment	—		—		—
Total
Commercial	66,162		66,162		10,398
Energy	10,226		10,226		854
Commercial real estate	16,544		16,544		343
Construction and land development	—		—		—
Residential real estate	2,537		2,537		219
Equity lines of credit	—		—		—
Consumer installment	—		—		—
	$	95,469	$	95,469	$	11,814



			Unpaid
	Recorded Balance		Principal Balance		Specific Allowance
	(Dollars in thousands)
December 31, 2018
Loans without a specific valuation
Commercial	$	40,151	$	40,151	$	—
Energy	2,789		2,789		—
Commercial real estate	7,059		7,059		—
Construction and land development	—		—		—
Residential real estate	1,964		1,964		—
Equity lines of credit	—		—		—
Consumer installment	—		—		—
Loans with a specific valuation
Commercial	37,996		37,996		5,814
Energy	13,461		13,461		3,108
Commercial real estate	8,168		8,168		473
Construction and land development	—		—		—
Residential real estate	63		63		5
Equity lines of credit	—		—		—
Consumer installment	—		—		—
Total
Commercial	78,147		78,147		5,814
Energy	16,250		16,250		3,108
Commercial real estate	15,227		15,227		473
Construction and land development	—		—		—
Residential real estate	2,027		2,027		5
Equity lines of credit	—		—		—
Consumer installment	—		—		—
	$	111,651	$	111,651	$	9,400

The table below shows interest income recognized during the three- and nine-month periods ended September 30, 2019 and September 30, 2018 for impaired loans held at the end of each period:



	Three months ended				Nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(Dollars in thousands)
Commercial	$	386	$	402	$	862	$	1,110
Energy	98		93		324		369
Commercial real estate	200		88		613		291
Construction and land development	—		—		—		—
Residential real estate	8		17		17		52
Equity lines of credit	—		—		—		—
Consumer installment	—		—		—		—
Total interest income recognized	$	692	$	600	$	1,816	$	1,822

The table below shows the average balance of impaired loans during the three- and nine-month periods ended September 30, 2019 and September 30, 2018 by loan category for impaired loans held at the end of each period:



	Three months ended				Nine months ended
	September 30,				September 30,
	2019		2018		2019
	(Dollars in thousands)
Commercial	$	54,410	$	27,671	$	49,265	$	26,849
Energy	13,623		17,683		15,091		18,992
Commercial real estate	16,690		8,055		16,528		8,101
Construction and land development	—		—		—		—
Residential real estate	2,538		2,046		2,354		2,059
Equity lines of credit	—		—		—		—
Consumer installment	—		—		—		—
Total average impaired loans	$	87,261	$	55,455	$	83,238	$	56,001

Non-accrual Loans

Nonperforming loans are loans for which the Company does not record interest income. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual or charged off at an earlier date, if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on non-accrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following table presents the Company’s non-accrual loans at September 30, 2019 and December 31, 2018:



	September 30, 2019		December 31, 2018
	(Dollars in thousands)
Commercial	$	34,201	$	4,781
Energy	4,677		9,219
Commercial real estate	2,680		3,517
Construction and land development	—		—
Residential real estate	2,068		301
Equity lines of credit	—		—
Consumer installment	—		—
Total non-accrual loans	$	43,626	$	17,818

Troubled Debt Restructurings

Restructured loans are those extended to borrowers who are experiencing financial difficulty and who have been granted a concession. The modification of terms typically includes the extension of maturity, reduction or deferment of monthly payment, or reduction of the stated interest rate.

The table below presents loans restructured during the three- and nine-months ended September 30, 2019 and 2018, including the post-modification outstanding balance and the type of concession made:



	Three Months Ended				Nine Months Ended
	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
	(Dollars in thousands)
Commercial
- Deferred payment	$	—	$	—	$	—	$	61
- Reduction of monthly payment	—		—		994		—
- Extension of maturity date	—		—		30,005		300
Energy
- Reduction of monthly payment	—		—		—		2,972
Commercial real estate
- Reduction of monthly payment	—		—		3,767		—
- Interest rate reduction	—		1,153		—		2,256
Total troubled debt restructurings	$	—	$	1,153	$	34,766	$	5,589

As of September 30, 2019 and December 31, 2018, the Company had $896 thousand and $0, respectively, in commitments to borrowers whose terms have been modified in troubled debt restructurings. As of September 30, 2019, the modifications related to the troubled debt restructurings above did not impact the allowance for loan losses because the loans were previously impaired and evaluated on an individual basis or enough collateral was obtained to provide an additional commitment. The restructured loans had a total specific valuation allowance of $8.8 million and $2.4 million as of September 30, 2019 and December 31, 2018, respectively.

The balance of restructured loans is provided below as of September 30, 2019 and December 31, 2018. In addition, the balance of those loans that are in default at any time during the past twelve months at September 30, 2019 and December 31, 2018 is provided below:



	September 30, 2019					December 31, 2018
	Number of Loans	Outstanding Balance		Balance 90 days past due at any time during previous 12 months⁽¹⁾		Number of Loans	Outstanding Balance		Balance 90 days past due at any time during previous 12 months⁽¹⁾
	(Dollars in thousands)
Commercial	7	$	36,865	$	—	6	$	5,022	$	55
Energy	2	2,969		—		2	3,631		—
Commercial real estate	3	4,947		—		2	1,382		—
Construction and land development	—	—		—		—	—		—
Residential real estate	—	—		—		1	237		—
Equity lines of credit	—	—		—		—	—		—
Consumer installment	—	—		—		—	—		—
Total restructured loans	12	$	44,781	$	—	11	$	10,272	$	55
⁽¹⁾ Default is considered to mean 90 days or more past due as to interest or principal.

Derivatives and Hedging

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

Derivatives not designated as hedges are not speculative and result from a service the Company provides to clients. The Company executes interest rate swaps with customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives

associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings.

During the quarter ended September 30, 2019, the Company changed an input associated with the fair market value related to derivatives not designated as hedges. The model utilized to calculate the non-performance risk, also known as the credit valuation adjustment, or CVA, was adjusted from a more conservative default methodology to a review of the historical defaults recognized by the Company. Management believes this change better aligns with the Company’s credit methodology and underwriting standards.

As a result of the change in methodology, the Company increased swap fee income, net by approximately $800 thousand, related to swaps closed on or before June 30, 2019. If no defaults occur for derivatives not designated as hedges, the change in methodology will lower future swap fee income, net by the same amount.

As of September 30, 2019 and December 31, 2018, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships:



	September 30, 2019			December 31, 2018
Product	Number of Instruments	Notional Amount		Number of Instruments	Notional Amount
	(Dollars in thousands)
Back-to-back swaps	46	$	308,960	20	$	77,709

The table below presents the fair value of the Company’s derivative financial instruments and their classification on the Balance Sheet as of September 30, 2019 and December 31, 2018:



	Asset Derivatives					Liability Derivatives
	Balance Sheet	September 30,		December 31,		Balance Sheet	September 30,		December 31,
	Location	2019		2018		Location	2019		2018
	(Dollars in thousands)
Derivatives not designated as hedging instruments
Interest rate products	Other assets	$	13,735	$	1,051	Other liabilities	$	13,782	$	1,136

The effect of the Company’s derivative financial instruments that are not designated as hedging instruments are reported on the Statements of Income as swap fee income, net. The effect of the Company’s derivative financial instruments gain and loss are reported on the Statements of Cash Flows within other assets and other liabilities.

The tables below show a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 2019 and December 31, 2018:



September 30, 2019
(Dollars in thousands)
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets and Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets presented in the Statement of Financial Position		Financial Instruments		Cash Collateral Received		Net Amount
Offsetting of derivative assets
Derivatives	$	13,735	$	—	$	13,735	$	—	$	—	$	13,735
Offsetting of derivative liabilities
Derivatives	$	13,782	$	—	$	13,782	$	—	$	—	$	13,782



December 31, 2018
(Dollars in thousands)
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets and Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets presented in the Statement of Financial Position		Financial Instruments		Cash Collateral Received		Net Amount
Offsetting of derivative assets
Derivatives	$	1,051	$	—	$	1,051	$	72	$	—	$	979
Offsetting of derivative liabilities
Derivatives	$	1,136	$	—	$	1,136	$	72	$	—	$	1,064

The net presentation above can be reconciled to the tabular disclosure of fair value.

As of September 30, 2019, the Company had minimum collateral posting thresholds with certain of its derivative counter-parties and had posted collateral of $18.2 million. If the Company had breached any of these provisions at September 30, 2019, it could have been required to settle its obligations under the agreements at their termination value of $13.8 million.

Interest-Bearing Deposits and Borrowings

9 Months Ended

Sep. 30, 2019

Interest-Bearing Deposits and Borrowings

The scheduled maturities, excluding interest, of the Company’s borrowings at September 30, 2019 were as follows:



	September 30, 2019
	Within One Year		One to Two Years		Two to Three Years		Three to Four Years		Four to Five Years		After Five Years		Total
	(Dollars in thousands)
Time deposits	$	822,439	$	216,486	$	105,559	$	52,055	$	25,215	$	—	$	1,221,754
Fed funds purchased & repurchase agreements	49,810		—		—		—		—		—		49,810
FHLB borrowings	24,000		76,500		16,500		39,704		—		151,100		307,804
Trust preferred securities⁽¹⁾	—		—		—		—		—		912		912
	$	896,249	$	292,986	$	122,059	$	91,759	$	25,215	$	152,012	$	1,580,280

⁽¹⁾ The contract value of the trust preferred securities is $2.5 million and is currently being accreted to the maturity date of 2035.

Change in Accumulated Other Comprehensive Income (AOCI)

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Change in Accumulated Other Comprehensive Income (AOCI)

Amounts reclassified from AOCI and the affected line items in the consolidated Statements of Income during the three and nine months ended September 30, 2019 and 2018, were as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,				Affected Line Item in the
	2019		2018		2019		2018		Statements of Income
	(Dollars in thousands)
Unrealized gains on available-for-sale securities	$	34	$	195	$	467	$	608	Gain on sale of available for sale securities
Amount reclassified before tax	34		195		467		608
Less: tax effect	9		47		115		149		Income tax expense
Net reclassified amount	$	25	$	148	$	352	$	459

Regulatory Matters

9 Months Ended

Sep. 30, 2019

Regulatory Matters

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Management believes that, as of September 30, 2019, the Company and the Bank meet all capital adequacy requirements to which they are subject.

The Company’s and the Bank’s actual capital amounts and ratios as of September 30, 2019 and December 31, 2018 are presented in the following table:



	Actual				Minimum Capital Required - Basel III Phase-In Schedule				Minimum Capital Required - Basel III Fully Phase-In				Required to be Considered Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
September 30, 2019
Total Capital to Risk-Weighted Assets
Consolidated	$	618,407	13.9	%	$	467,160	10.5	%	$	467,160	10.5	%	N/A		N/A
Bank	567,667		12.8		467,085		10.5		467,085		10.5		$	444,843	10.0	%
Tier I Capital to Risk-Weighted Assets
Consolidated	575,412		12.9		378,177		8.5		378,177		8.5		N/A		N/A
Bank	524,672		11.8		378,117		8.5		378,117		8.5		355,875		8.0
Common Equity Tier 1 to Risk-Weighted Assets
Consolidated	574,500		12.9		311,440		7.0		311,440		7.0		N/A		N/A
Bank	524,672		11.8		311,390		7.0		311,390		7.0		289,148		6.5
Tier I Capital to Average Assets
Consolidated	575,412		12.6		183,152		4.0		183,152		4.0		N/A		N/A
Bank	$	524,672	11.5	%	$	183,109	4.0	%	$	183,109	4.0	%	$	228,886	5.0	%
December 31, 2018
Total Capital to Risk-Weighted Assets
Consolidated	$	521,111	13.5	%	$	380,873	9.9	%	$	404,979	10.5	%	N/A		N/A
Bank	481,287		12.5		380,369		9.9		404,443		10.5		$	385,184	10.0	%
Tier I Capital to Risk-Weighted Assets
Consolidated	483,285		12.5		303,734		7.9		327,840		8.5		N/A		N/A
Bank	443,461		11.5		303,332		7.9		327,406		8.5		308,147		8.0
Common Equity Tier 1 to Risk-Weighted Assets
Consolidated	453,049		11.7		245,880		6.4		269,986		7.0		N/A		N/A
Bank	443,461		11.5		245,555		6.4		269,629		7.0		250,369		6.5
Tier I Capital to Average Assets
Consolidated	483,285		12.4		155,538		4.0		155,538		4.0		N/A		N/A
Bank	$	443,461	11.4	%	$	155,420	4.0	%	$	155,420	4.0	%	$	194,275	5.0	%

Revenue from Contract with Customer [Abstract]

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1C
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1D
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 505
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958570-112826

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958569-112826

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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-Topic 942
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958577-112826

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 1F
-URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958575-112826

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1E
-URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958574-112826

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1H
-URI http://asc.fasb.org/extlink&oid=117337116&loc=d3e65071-112826

+ Details

Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2019

Revenue from Contracts with Customers

The Company adopted ASU 2014-09, ‘‘Revenue from Contracts with Customers (Topic 606)’’ and its related amendments as of January 1, 2019 using the modified retrospective approach. The implementation had no material impact on the measurement or recognition of revenue of either current or prior periods.

The categories are selected based on the nature, amount, timing, and uncertainty of revenue and cash flows. The following presents descriptions of revenue categories within the scope of ASU 2014-09 (ASC 606):

Service charges and fees (rebates) on customer accounts - This segment consists of monthly fees for the services rendered on customer deposit accounts, including maintenance charges, overdraft fees, and processing fees. The monthly fee structures are typically based on type of account, volume, and activity. The customer is typically billed monthly and pays the bill from their deposit account. The Company satisfies the performance obligation related to providing depository accounts monthly as transactions are processed and deposit service charge revenue is recorded.

ATM and credit card interchange income - This segment consists of fees charged for use of the Company’s ATMs, as well as, an interchange fee with credit card and debit card service providers. ATM fees and interchange fees are based on the number of transactions, as well as, the underlying agreements. Customers are typically billed monthly. The Company satisfies the performance obligation related to ATM and interchange fees monthly as transactions are processed and revenue is recorded.

International fees - This segment consists of fees earned from foreign exchange transactions and preparation of international documentation. International fees are based on underlying agreements that describe the Company’s performance obligation and the related fee. Customers are typically billed and cash is received once the service or transaction is complete. The Company satisfies the performance obligation related to international fees monthly as transactions are processed and revenue is recorded.

Other fees - This segment consists of numerous, smaller fees such as wire transfer fees, check cashing fees, and check printing fees. Other fees are typically billed to customers on a monthly basis. Performance obligations for other fees are satisfied at the time that the service is rendered.

The following table disaggregates the non-interest income subject to ASU 2014-09 by category:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2019		2018			2019		2018
	(Dollars in thousands)
Non-interest income subject to ASU 2014-09
Service charges and fees (rebates) on customer accounts	$	72	$	(100	)	$	441	$	506
ATM and credit card interchange income	476		301			1,312		827
International fees	199		160			506		579
Other fees	12		10			104		30
Total non-interest income from contracts with customers	759		371			2,363		1,942
Non-interest income not subject to ASU 2014-09
Other non-interest income	2,453		814			4,166		2,946
Total non-interest income	$	3,212	$	1,185		$	6,529	$	4,888

Equity-Based Compensation

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Equity-Based Compensation

The Company issues stock-based compensation in the form of nonvested restricted stock and stock appreciation rights under the 2018 Omnibus Equity Incentive Plan. In addition, the Company has an Employee Stock Purchase Plan that was indefinitely suspended effective April 1, 2019. The aggregate number of shares authorized for future issuance under the Omnibus Plan is 2,275,721 shares as of September 30, 2019.

The table below summarizes the stock-based compensation for the three and nine-months ended September 30, 2019 and 2018:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(Dollars in thousands)
Stock appreciation rights	$	446	$	220	$	977	$	1,905
Performance based restricted units and stock	159		28		409		524
Restricted stock units	510		280		1,528		1,957
Restricted stock awards	209		—		656		—
Employee stock purchase plan	—		38		36		127
Total stock-based compensation	$	1,324	$	566	$	3,606	$	4,513

Income Tax

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Tax

A reconciliation of the income tax expense (benefit) at the statutory rate to the Company’s actual income tax expense (benefit) is shown below:



	Three months ended						Nine months ended
	September 30,						September 30,
	2019			2018			2019			2018
	(Dollars in thousands)
Computed at the statutory rate (21%)	$	2,725		$	1,529		$	7,241		$	1,754
Increase (decrease) resulting from
Tax-exempt income	(722		)	(860		)	(2,147		)	(2,754		)
Nondeductible expenses	71			87			208			261
State tax credit	—			—			(1,361		)	—
State income taxes	566			124			1,526			245
Equity based compensation	(5		)	—			(66		)	(400		)
Other adjustments	(43		)	44			(93		)	(10		)
Actual tax expense (benefit)	$	2,592		$	924		$	5,308		$	(904	)

The tax effects of temporary differences related to deferred taxes shown on the consolidated Balance Sheets are presented below:



	September 30, 2019			December 31, 2018
	(Dollars in thousands)
Deferred tax assets
Net unrealized loss on securities available-for-sale	$	—		$	986
Allowance for loan losses	10,637			9,358
Lease incentive	306			329
Impairment of available for sale securities	498			498
Valuation allowance on real estate	—			396
Loan fees	2,202			2,135
Net operating loss carryover	370			398
Accrued expenses	105			1,927
Deferred compensation	2,317			1,838
Alternative minimum tax credits	—			2,365
State tax credit	3,517			2,506
Other	63			79
	20,015			22,815
Deferred tax liability
Fair market value adjustments - trust preferred securities	(350		)	(356		)
Net unrealized gain on securities available-for-sale	(5,812		)	—
FHLB stock basis	(936		)	(739		)
Premises and equipment	(4,301		)	(5,019		)
Other	(1,187		)	(385		)
	(12,586		)	(6,499		)
Net deferred tax asset	$	7,429		$	16,316

Disclosures about Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Disclosures about Fair Value of Financial Instruments

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:


Level 1	Quoted prices in active markets for identical assets or liabilities


Level 2	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.


Level 3	Unobservable inputs supported by little or no market activity and significant to the fair value of the assets or liabilities.

Recurring Measurements

The following tables present the fair value measurements of assets and liabilities recognized in the accompanying consolidated Balance Sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2019 and December 31, 2018:



			September 30, 2019
			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(Dollars in thousands)
Available-for-sale securities
Mortgage-backed - GSE residential	$	160,714	$	—	$	160,714	$	—
Collateralized mortgage obligations - GSE residential	148,675		—		148,675		—
State and political subdivisions	420,009		—		420,009		—
Corporate bonds	1,536		—		1,536		—
Mutual funds	2,159		—		2,159		—
Derivative assets	13,735		—		13,735		—
Derivative liabilities	$	13,782	$	—	$	13,782	$	—



			December 31, 2018
			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(Dollars in thousands)
Available-for-sale securities
Mortgage-backed - GSE residential	$	129,287	$	—	$	129,287	$	—
Collateralized mortgage obligations - GSE residential	152,626		—		152,626		—
State and political subdivisions	378,058		—		378,058		—
Corporate bonds	1,657		—		1,657		—
Mutual funds	2,050		—		2,050		—
Derivative assets	1,051		—		1,051		—
Derivative liabilities	$	1,136	$	—	$	1,136	$	—

Following is a description of the valuation methodologies and inputs used for assets and liabilities measured at fair value on a recurring basis and recognized in the Company’s accompanying consolidated balance sheets.

Available-for-Sale Securities

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy.

Derivatives

Fair value of the interest rate swaps is obtained from independent pricing services based on quoted market prices for similar derivative contracts.

Nonrecurring Measurements

The following tables present assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2019 and December 31, 2018:



			September 30, 2019
			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(Dollars in thousands)
Collateral-dependent impaired loans	$	40,220	$	—	$	—	$	40,220
Premises and equipment held-for-sale	—		—		—		—
Foreclosed assets held for sale	$	2,471	$	—	$	—	$	2,471



			December 31, 2018
			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(Dollars in thousands)
Collateral-dependent impaired loans	$	50,288	$	—	$	—	$	50,288
Premises and equipment held-for-sale	3,444		—		3,444		—
Foreclosed assets held for sale	$	—	$	—	$	—	$	—

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets.

Collateral-dependent Impaired Loans, Net of ALLL

The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. The impaired loans had a carrying value of $52.0 million and $59.7 million and were reduced by specific valuation allowance allocations totaling $11.8 million and $9.4 million at September 30, 2019 and December 31, 2018, respectively.

Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Office of the Chief Credit Officer. Appraisals are reviewed for accuracy and consistency by the Office of the Chief Credit Officer. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Office of the Chief Credit Officer by comparison to historical results.

Premises and Equipment Held-for-Sale

The estimated fair value of premises and equipment held-for-sale is based on the appraised fair value of the collateral, less estimated cost to sell.

Foreclosed Assets Held-for-Sale

The estimated fair value of foreclosed assets held-for-sale is based on the appraised fair value of the collateral, less estimated cost to sell.

Unobservable (Level 3) Inputs

The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements at September 30, 2019 and December 31, 2018:



	September 30, 2019
	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
	(Dollars in thousands)
Collateral-dependent impaired loans	$	40,220	Market comparable properties	Marketability discount	10% - 15% (12%)
Foreclosed assets held for sale	$	2,471	Market comparable properties	Marketability discount	25%



	December 31, 2018
	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
	(Dollars in thousands)
Collateral-dependent impaired loans	$	50,288	Market comparable properties	Marketability discount	10% - 15% (12%)
Foreclosed assets held for sale	$	—

The following tables present the estimated fair values of the Company’s financial instruments at September 30, 2019 and December 31, 2018:



	September 30, 2019
	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Financial Assets
Cash and cash equivalents	$	128,126	$	128,126	$	—	$	—	$	128,126
Available-for-sale securities	733,093		—		733,093		—		733,093
Loans, net of allowance for loan losses	3,586,797		—		—		3,607,276		3,607,276
Restricted equity securities	16,053		—		—		16,053		16,053
Interest receivable	15,909		—		15,909		—		15,909
Derivative assets	13,735		—		13,735		—		13,735
	$	4,493,713	$	128,126	$	762,737	$	3,623,329	$	4,514,192
Financial Liabilities
Deposits	$	3,658,108	$	513,832	$	—	$	3,162,740	$	3,676,572
Federal funds purchased and repurchase agreements	49,810		—		49,809		—		49,809
Federal Home Loan Bank advances	307,804		—		311,583		—		311,583
Other borrowings	912		—		2,054		—		2,054
Interest payable	4,643		—		4,643		—		4,643
Derivative liabilities	13,782		—		13,782		—		13,782
	$	4,035,059	$	513,832	$	381,871	$	3,162,740	$	4,058,443



	December 31, 2018
	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Financial Assets
Cash and cash equivalents	$	216,541	$	216,541	$	—	$	—	$	216,541
Available-for-sale securities	661,628		—		661,628		—		661,628
Loans, net of allowance for loan losses	3,022,921		—		—		3,027,930		3,027,930
Restricted equity securities	14,525		—		—		14,525		14,525
Interest receivable	14,092		—		14,092		—		14,092
Derivative assets	1,051		—		1,051		—		1,051
	$	3,930,758	$	216,541	$	676,771	$	3,042,455	$	3,935,767
Financial Liabilities
Deposits	$	3,208,097	$	484,284	$	—	$	2,696,212	$	3,180,496
Federal funds purchased and repurchase agreements	75,406		—		75,404		—		75,404
Federal Home Loan Bank advances	312,985		—		298,017		—		298,017
Other borrowings	884		—		2,022		—		2,022
Interest payable	2,868		—		2,868		—		2,868
Derivative liabilities	1,136		—		1,136		—		1,136
	$	3,601,376	$	484,284	$	379,447	$	2,696,212	$	3,559,943

Following is a description of the valuation methodologies and inputs used for assets and liabilities measured at fair value categorized within level 2 or level 3 above and not yet disclosed:

Loans

The Company adopted ASU 2016-01 on January 1, 2019. In accordance with its requirements, the fair value of loans as of September 30, 2019 was measured using an exit price notion. Methodologies utilized for this financial statement period are as follows: (i) Income Approach: Fair value is determined based on a discounted cash flow analysis. The discounted cash flow analysis was based on the contractual maturity of the loan and market indications of rates, prepayment speeds, defaults and credit risk; and (ii) Asset Approach: Fair value is determined based on the estimated values of the underlying collateral or individual analysis of receipts. This provides a better indication of value than the contractual income streams as these loans are not performing or exhibit strong signs indicative of non-performance. Fair value has been established in accordance with ASC 820, Fair Value Measurements and Disclosures, and is intended to represent the price that would be received in an orderly transaction between market participants as of the measurement date. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, at least one significant assumption not observable in the market was utilized. These unobservable assumptions reflect estimates that market participants would use in pricing the asset or liability. Inputs to these valuation techniques are subjective in nature, involve uncertainties and require significant judgment and therefore cannot be determined with precision. Accordingly, the fair value estimates presented are not necessarily indicative of the amounts to be realized in a current market exchange.

For December 31, 2018, fair value was estimated by discounting the future cash flows using the market rates at which similar notes would be made to borrowers with similar credit ratings and for the same remaining maturities. The market rates used were based on current rates the Company would impose for similar loans and reflect a market participant assumption about risks associated with nonperformance, illiquidity, and the structure and term of the loans along with local economic and market conditions.

Restricted Equity Securities

Fair value is estimated at book value due to restrictions that limit the sale or transfer of such securities.

Interest Receivable and Payable

The carrying amount approximates fair value. The carrying amount is determined using the interest rate, balance and last payment date.

Deposits

Fair value of term deposits is estimated by discounting the future cash flows using rates of similar deposits with similar maturities. The estimated fair value of demand, transaction, savings and money market deposits is the book value since rates are regularly adjusted to market rates and amounts are payable on demand at the reporting date.

Federal Home Loan Bank Advances

Fair value is estimated by discounting the future cash flows using rates of similar advances with similar maturities. These rates were obtained from current rates offered by FHLB.

Fed Funds Purchased and Repurchase Agreements

Fair value for fed funds purchased is book value. Fair value of repurchase agreements estimated by discounting the future cash flows using rates of similar maturities.

Other Borrowings

Fair value of the Company’s line of credit with another financial institution is estimated at book value due to its short-term nature. The estimated fair value for the Trust Preferred Securities is based on current borrowing rates currently available to the Company, considering the size and quality of the credit and liquidity of the debt as a security.

Commitments and Contingencies Disclosure [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and Credit Risk

9 Months Ended

Sep. 30, 2019

Commitments and Credit Risk

The Company had the following commitments at September 30, 2019 and December 31, 2018:



	September 30, 2019		December 31, 2018
	(Dollars in thousands)
Commitments to originate loans	$	176,598	$	190,997
Standby letters of credit	35,699		32,439
Lines of credit	1,255,764		1,174,166
Future lease commitment	19,054		19,054
Total	$	1,487,115	$	1,416,656

Legal and Regulatory Proceedings	9 Months Ended
Legal and Regulatory Proceedings	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Legal and Regulatory Proceedings	Legal and Regulatory Proceedings General Litigation The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, result of operations and cash flows of the Company.

Nature of Operations and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Basis of Presentation

Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.

Use of Estimates

Cash Equivalents

Recent Accounting Pronouncements

The Company has implemented the following Accounting Standards Updates (‘‘ASU’’) during 2019:



Standard	Date of Adoption	Description	Effect on Financial Statements or Other Significant Matters
ASU 2016-01 - Financial Instruments-Overall (Subtopic 825-10)	January 2019	Required equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Emphasized the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities should not make use of practicability exceptions in determining the fair value of loans.	The Company transferred $68.7 thousand from accumulated other comprehensive loss to retained earnings in January 2019. There was no impact to the income statement on the adoption date.
ASU 2014-09 - Revenue from Contracts with Customers	January 2019	Amended guidance related to revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Replaced nearly all existing revenue recognition guidance, including industry-specific guidance, established a new control-based revenue recognition model, changed the basis for deciding when revenue is recognized over time or at a point in time, provided new and more detailed guidance on specific topics and expands and improves disclosures about revenue.	The accounting update did not materially impact the financial statements or recognition of revenues. The update did not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, which comprises a significant portion of the Company’s revenue stream. In addition, the Company’s non-interest income is generated by customer transactions or through the passage of time and as a result the pattern or timing of income recognition was not impacted.

The Company has updates to the following ASUs that have not yet been adopted. A complete list of recent, applicable accounting pronouncements was provided in the IPO Prospectus:

Allowance for Loan Losses

Impaired Loans

Non-accrual Loans

Troubled Debt Restructurings

Fair Value Measurement

Available-for-Sale Securities

Derivatives

Fair value of the interest rate swaps is obtained from independent pricing services based on quoted market prices for similar derivative contracts.

Collateral-dependent Impaired Loans, Net of ALLL

Premises and Equipment Held-for-Sale

The estimated fair value of premises and equipment held-for-sale is based on the appraised fair value of the collateral, less estimated cost to sell.

Foreclosed Assets Held-for-Sale

The estimated fair value of foreclosed assets held-for-sale is based on the appraised fair value of the collateral, less estimated cost to sell.

Restricted Equity Securities

Fair value is estimated at book value due to restrictions that limit the sale or transfer of such securities.

Interest Receivable and Payable

The carrying amount approximates fair value. The carrying amount is determined using the interest rate, balance and last payment date.

Deposits

Federal Home Loan Bank Advances

Fair value is estimated by discounting the future cash flows using rates of similar advances with similar maturities. These rates were obtained from current rates offered by FHLB.

Fed Funds Purchased and Repurchase Agreements

Fair value for fed funds purchased is book value. Fair value of repurchase agreements estimated by discounting the future cash flows using rates of similar maturities.

Other Borrowings

Nature of Operations and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The Company has implemented the following Accounting Standards Updates (‘‘ASU’’) during 2019:



Standard	Date of Adoption	Description	Effect on Financial Statements or Other Significant Matters
ASU 2016-01 - Financial Instruments-Overall (Subtopic 825-10)	January 2019	Required equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Emphasized the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities should not make use of practicability exceptions in determining the fair value of loans.	The Company transferred $68.7 thousand from accumulated other comprehensive loss to retained earnings in January 2019. There was no impact to the income statement on the adoption date.
ASU 2014-09 - Revenue from Contracts with Customers	January 2019	Amended guidance related to revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Replaced nearly all existing revenue recognition guidance, including industry-specific guidance, established a new control-based revenue recognition model, changed the basis for deciding when revenue is recognized over time or at a point in time, provided new and more detailed guidance on specific topics and expands and improves disclosures about revenue.	The accounting update did not materially impact the financial statements or recognition of revenues. The update did not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, which comprises a significant portion of the Company’s revenue stream. In addition, the Company’s non-interest income is generated by customer transactions or through the passage of time and as a result the pattern or timing of income recognition was not impacted.

The Company has updates to the following ASUs that have not yet been adopted. A complete list of recent, applicable accounting pronouncements was provided in the IPO Prospectus:

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table presents the computation of basic and diluted earnings per share:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(Dollars in thousands)
Earnings per Share
Net income	$	10,384	$	6,354	$	29,173	$	9,256
Less: preferred stock dividends	—		525		175		1,575
Net income available to common stockholders	$	10,384	$	5,829	$	28,998	$	7,681
Weighted average common shares⁽¹⁾	48,351,553		37,790,614		46,239,021		33,918,540
Earnings per share	$	0.22	$	0.15	$	0.63	$	0.23
Dilutive Earnings Per Share
Net income available to common stockholders	$	10,384	$	5,829	$	28,998	$	7,681
Weighted average common shares⁽¹⁾	48,351,553		37,790,614		46,239,021		33,918,540
Effect of dilutive shares⁽¹⁾	812,996		988,010		842,706		1,133,888
Weighted average dilutive common shares⁽¹⁾	49,164,549		38,778,624		47,081,727		35,052,428
Diluted earnings per share	$	0.21	$	0.15	$	0.61	$	0.22

SARs, RSUs, RSAs, PRSUs, PSSs not included because to do so would be antidilutive⁽¹⁾	541,556		442,452		507,167		273,180

¹ Share data has been adjusted to reflect a 2-for-1 stock split effected in the form of a dividend on December 21, 2018.

Securities (Tables)

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of period end available-for-sale debt and equity securities consisted of the following:



	September 30, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Approximate Fair Value
	(Dollars in thousands)
Available-for-sale debt securities
Mortgage-backed - GSE residential	$	158,897	$	2,009	$	192	$	160,714
Collateralized mortgage obligations - GSE residential	147,917		1,002		244		148,675
State and political subdivisions	398,963		21,051		5		420,009
Corporate bonds	1,444		92		—		1,536
Total available-for-sale debt securities	707,221		24,154		441		730,934
Equity securities
Mutual funds	2,179		—		20		2,159
Total equity securities	2,179		—		20		2,159
Total available-for-sale securities	$	709,400	$	24,154	$	461	$	733,093



	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Approximate Fair Value
	(Dollars in thousands)
Available-for-sale debt securities
Mortgage-backed - GSE residential	$	131,215	$	162	$	2,090	$	129,287
Collateralized mortgage obligations - GSE residential	154,110		287		1,771		152,626
State and political subdivisions	378,595		3,908		4,445		378,058
Corporate bonds	1,613		70		26		1,657
Total available-for-sale debt securities	665,533		4,427		8,332		661,628
Equity securities
Mutual funds	2,141		—		91		2,050
Total equity securities	2,141		—		91		2,050
Total available-for-sale securities	$	667,674	$	4,427	$	8,423	$	663,678

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of available-for-sale debt securities at September 30, 2019, by contractual maturity, are shown below:



	September 30, 2019
	Within		After One to		After Five to		After
	One Year		Five Years		Ten Years		Ten Years		Total
	(Dollars in thousands)
Available-for-sale debt securities
Mortgage-backed - GSE residential⁽¹⁾
Amortized cost	$	—	$	—	$	1,411	$	157,486	$	158,897
Estimated fair value	—		—		1,471		159,243		160,714
Collateralized mortgage obligations - GSE residential⁽¹⁾
Amortized cost	—		—		2,876		145,041		147,917
Estimated fair value	—		—		3,011		145,664		148,675
State and political subdivisions
Amortized cost	—		3,580		40,410		354,973		398,963
Estimated fair value	—		3,674		43,071		373,264		420,009
Corporate bonds
Amortized cost	—		—		1,444		—		1,444
Estimated fair value	—		—		1,536		—		1,536
Total available-for-sale debt securities
Amortized cost	—		3,580		46,141		657,500		707,221
Estimated fair value	$	—	$	3,674	$	49,089	$	678,171	$	730,934
⁽¹⁾ Actual maturities may differ from contractual maturities because issuers may have the rights to call or prepay obligations with or without prepayment penalties.

Schedule of Unrealized Loss on Investments



	September 30, 2019
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses		Number of Securities
	(Dollars in thousands)
Available-for-Sale Debt Securities
Mortgage-backed - GSE residential	$	3,988	$	4	1	$	27,889	$	188	5	$	31,877	$	192	6
Collateralized mortgage obligations - GSE residential	48,851		149		6	9,792		95		10	58,643		244		16
State and political subdivisions	2,952		4		3	146		1		1	3,098		5		4
Corporate bonds	—		—		0	—		—		0	—		—		0
Total temporarily impaired debt securities	$	55,791	$	157	10	$	37,827	$	284	16	$	93,618	$	441	26



	December 31, 2018
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses		Number of Securities
	(Dollars in thousands)
Available-for-Sale Debt Securities
Mortgage-backed - GSE residential	$	66,232	$	369	10	$	44,280	$	1,721	11	$	110,512	$	2,090	21
Collateralized mortgage obligations - GSE residential	4,639		42		1	68,362		1,729		20	73,001		1,771		21
State and political subdivisions	85,181		1,210		68	97,721		3,235		74	182,902		4,445		142
Corporate bonds	723		26		1	—		—		0	723		26		1
Total temporarily impaired debt securities	$	156,775	$	1,647	80	$	210,363	$	6,685	105	$	367,138	$	8,332	185

Gain (Loss) on Securities

The following is a summary of the recorded fair value and the unrealized and realized gains and losses recognized in net income on available-for-sale equity securities:



	September 30, 2019
	Three months ended		Nine months ended
	(Dollars in thousands)
Net gains recognized during the period on equity securities	$	16	$	72
Less: net gains recognized during the period on equity securities sold during the period	—		—
Unrealized gain recognized during the reporting period on equity securities still held at the reporting date	$	16	$	72

Loans and Allowance for Loan Leases (Tables)

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

Categories of loans at September 30, 2019 and December 31, 2018 include:



	September 30, 2019		December 31, 2018
	(Dollars in thousands)
Commercial	$	1,312,647	$	1,134,414
Energy	396,132		358,283
Commercial real estate	993,153		846,561
Construction and land development	527,582		440,032
Residential real estate	365,435		246,275
Equity lines of credit	22,192		20,286
Consumer installment	21,552		23,528
Gross loans	3,638,693		3,069,379
Less: Allowance for loan losses	42,995		37,826
Less: Net deferred loan fees and costs	8,901		8,632
Net loans	$	3,586,797	$	3,022,921

Financing Receivable, Allowance for Credit Loss



	Commercial			Energy			Commercial Real Estate			Construction and Land Development		Residential Real Estate		Equity Lines of Credit		Consumer Installment			Total
	(Dollars in thousands)
Three months ended September 30, 2019
Allowance for loan losses
Beginning balance	$	22,975		$	7,300		$	7,533		$	2,602	$	2,138	$	155	$	149		$	42,852
Provision charged to expense	3,535			1,077			(249		)	414		82		5		(14		)	4,850
Charge-offs	(1,700		)	(3,000		)	—			—		—		—		(8		)	(4,708		)
Recoveries	1			—			—			—		—		—		—			1
Ending balance	$	24,811		$	5,377		$	7,284		$	3,016	$	2,220	$	160	$	127		$	42,995



	Commercial			Energy		Commercial Real Estate		Construction and Land Development		Residential Real Estate		Equity Lines of Credit		Consumer Installment			Total
	(Dollars in thousands)
Three months ended September 30, 2018
Allowance for loan losses
Beginning balance	$	11,739		$	7,957	$	6,584	$	2,530	$	1,103	$	170	$	114		$	30,197
Provision charged to expense	1,102			1,184		315		137		261		4		(3		)	3,000
Charge-offs	(97		)	—		—		—		—		—		—			(97		)
Recoveries	439			—		—		—		—		—		1			440
Ending balance	$	13,183		$	9,141	$	6,899	$	2,667	$	1,364	$	174	$	112		$	33,540



	Commercial			Energy			Commercial Real Estate		Construction and Land Development		Residential Real Estate		Equity Lines of Credit		Consumer Installment			Total
	(Dollars in thousands)
Nine months ended September 30, 2019
Allowance for loan losses
Beginning balance	$	16,584		$	10,262		$	6,755	$	2,475	$	1,464	$	159	$	127		$	37,826
Provision charged to expense	11,166			(2,461		)	529		541		756		1		18			10,550
Charge-offs	(2,954		)	(3,000		)	—		—		—		—		(19		)	(5,973		)
Recoveries	15			576			—		—		—		—		1			592
Ending balance	$	24,811		$	5,377		$	7,284	$	3,016	$	2,220	$	160	$	127		$	42,995



	Commercial			Energy			Commercial Real Estate		Construction and Land Development		Residential Real Estate		Equity Lines of Credit			Consumer Installment			Total
	(Dollars in thousands)
Nine months ended September 30, 2018
Allowance for loan losses
Beginning balance	$	11,378		$	7,726		$	4,668	$	1,200	$	905	$	122		$	92		$	26,091
Provision charged to expense	2,031			2,671			2,231		1,467		459		77			64			9,000
Charge-offs	(681		)	(1,256		)	—		—		—		(25		)	(45		)	(2,007		)
Recoveries	455			—			—		—		—		—			1			456
Ending balance	$	13,183		$	9,141		$	6,899	$	2,667	$	1,364	$	174		$	112		$	33,540



	Commercial		Energy		Commercial Real Estate		Construction and Land Development		Residential Real Estate		Equity Lines of Credit		Consumer Installment		Total
	(Dollars in thousands)
September 30, 2019
Ending balance
Individually evaluated for impairment	$	10,398	$	854	$	343	$	—	$	219	$	—	$	—	$	11,814
Collectively evaluated for impairment	$	14,413	$	4,523	$	6,941	$	3,016	$	2,001	$	160	$	127	$	31,181
Allocated to loans:
Individually evaluated for impairment	$	66,162	$	10,226	$	16,544	$	—	$	2,537	$	—	$	—	$	95,469
Collectively evaluated for impairment	$	1,246,485	$	385,906	$	976,609	$	527,582	$	362,898	$	22,192	$	21,552	$	3,543,224
Ending balance	$	1,312,647	$	396,132	$	993,153	$	527,582	$	365,435	$	22,192	$	21,552	$	3,638,693



	Commercial		Energy		Commercial Real Estate		Construction and Land Development		Residential Real Estate		Equity Lines of Credit		Consumer Installment		Total
	(Dollars in thousands)
December 31, 2018
Ending balance
Individually evaluated for impairment	$	5,814	$	3,108	$	473	$	—	$	5	$	—	$	—	$	9,400
Collectively evaluated for impairment	$	10,770	$	7,154	$	6,282	$	2,475	$	1,459	$	159	$	127	$	28,426
Allocated to loans:
Individually evaluated for impairment	$	78,147	16,250		$	15,227	$	—	$	2,027	$	—	$	—	$	111,651
Collectively evaluated for impairment	$	1,056,267	$	342,033	$	831,334	$	440,032	$	244,248	$	20,286	$	23,528	$	2,957,728
Ending balance	$	1,134,414	$	358,283	$	846,561	$	440,032	$	246,275	$	20,286	$	23,528	$	3,069,379

Financing Receivable Credit Quality Indicators

The following tables present the credit risk profile of the Company’s loan portfolio based on an internal rating category (grades 1 - 8), portfolio segment and payment activity:



	Pass & Watch		Special Mention		Substandard		Doubtful		Loss		Total
	(Dollars in thousands)
September 30, 2019
Commercial	$	1,217,280	$	29,350	$	66,017	$	—	$	—	$	1,312,647
Energy	378,533		10,342		2,580		4,677		—		396,132
Commercial real estate	976,262		7,529		8,402		960		—		993,153
Construction and land development	527,582		—		—		—		—		527,582
Residential real estate	362,625		273		2,537		—		—		365,435
Equity lines of credit	22,192		—		—		—		—		22,192
Consumer installment	21,552		—		—		—		—		21,552
	$	3,506,026	$	47,494	$	79,536	$	5,637	$	—	$	3,638,693



	Pass & Watch		Special Mention		Substandard		Doubtful		Loss		Total
	(Dollars in thousands)
December 31, 2018
Commercial	$	1,056,505	$	—	$	73,824	$	4,085	$	—	$	1,134,414
Energy	339,720		5,376		13,187		—		—		358,283
Commercial real estate	831,290		6,950		7,209		1,112		—		846,561
Construction and land development	440,032		—		—		—		—		440,032
Residential real estate	244,178		70		2,027		—		—		246,275
Equity lines of credit	20,286		—		—		—		—		20,286
Consumer installment	23,528		—		—		—		—		23,528
	$	2,955,539	$	12,396	$	96,247	$	5,197	$	—	$	3,069,379

Financing Receivable, Past Due

The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of September 30, 2019 and December 31, 2018:



	30-59 Days Past Due		60-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Loans Receivable		Loans >= 90 Days and Accruing
	(Dollars in thousands)
September 30, 2019
Commercial	$	42,039	$	2,785	$	1,101	$	45,925	$	1,266,722	$	1,312,647	$	—
Energy	7,122		—		5,319		12,441		383,691		396,132		642
Commercial real estate	317		—		93		410		992,743		993,153		—
Construction and land development	12,345		—		—		12,345		515,237		527,582		—
Residential real estate	68		—		2,012		2,080		363,355		365,435		—
Equity lines of credit	—		—		—		—		22,192		22,192		—
Consumer installment	50		—		—		50		21,502		21,552		—
	$	61,941	$	2,785	$	8,525	$	73,251	$	3,565,442	$	3,638,693	$	642



	30-59 Days Past Due		60-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Loans Receivable		Loans >= 90 Days and Accruing
	(Dollars in thousands)
December 31, 2018
Commercial	$	1,040	$	—	$	4,137	$	5,177	$	1,129,237	$	1,134,414	$	—
Energy	1,994		—		9,218		11,212		347,071		358,283		—
Commercial real estate	—		425		2,253		2,678		843,883		846,561		—
Construction and land development	—		—		—		—		440,032		440,032		—
Residential real estate	28		194		—		222		246,053		246,275		—
Equity lines of credit	—		—		—		—		20,286		20,286		—
Consumer installment	—		—		—		—		23,528		23,528		—
	$	3,062	$	619	$	15,608	$	19,289	$	3,050,090	$	3,069,379	$	—

Impaired Financing Receivables

The following tables present impaired loans for the periods ended September 30, 2019 and December 31, 2018:



			Unpaid
	Recorded Balance		Principal Balance		Specific Allowance
	(Dollars in thousands)
September 30, 2019
Loans without a specific valuation
Commercial	$	25,770	$	25,770	$	—
Energy	2,969		2,969		—
Commercial real estate	12,501		12,501		—
Construction and land development	—		—		—
Residential real estate	2,195		2,195		—
Equity lines of credit	—		—		—
Consumer installment	—		—		—
Loans with a specific valuation
Commercial	40,392		40,392		10,398
Energy	7,257		7,257		854
Commercial real estate	4,043		4,043		343
Construction and land development	—		—		—
Residential real estate	342		342		219
Equity lines of credit	—		—		—
Consumer installment	—		—		—
Total
Commercial	66,162		66,162		10,398
Energy	10,226		10,226		854
Commercial real estate	16,544		16,544		343
Construction and land development	—		—		—
Residential real estate	2,537		2,537		219
Equity lines of credit	—		—		—
Consumer installment	—		—		—
	$	95,469	$	95,469	$	11,814



			Unpaid
	Recorded Balance		Principal Balance		Specific Allowance
	(Dollars in thousands)
December 31, 2018
Loans without a specific valuation
Commercial	$	40,151	$	40,151	$	—
Energy	2,789		2,789		—
Commercial real estate	7,059		7,059		—
Construction and land development	—		—		—
Residential real estate	1,964		1,964		—
Equity lines of credit	—		—		—
Consumer installment	—		—		—
Loans with a specific valuation
Commercial	37,996		37,996		5,814
Energy	13,461		13,461		3,108
Commercial real estate	8,168		8,168		473
Construction and land development	—		—		—
Residential real estate	63		63		5
Equity lines of credit	—		—		—
Consumer installment	—		—		—
Total
Commercial	78,147		78,147		5,814
Energy	16,250		16,250		3,108
Commercial real estate	15,227		15,227		473
Construction and land development	—		—		—
Residential real estate	2,027		2,027		5
Equity lines of credit	—		—		—
Consumer installment	—		—		—
	$	111,651	$	111,651	$	9,400

The table below shows interest income recognized during the three- and nine-month periods ended September 30, 2019 and September 30, 2018 for impaired loans held at the end of each period:



	Three months ended				Nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(Dollars in thousands)
Commercial	$	386	$	402	$	862	$	1,110
Energy	98		93		324		369
Commercial real estate	200		88		613		291
Construction and land development	—		—		—		—
Residential real estate	8		17		17		52
Equity lines of credit	—		—		—		—
Consumer installment	—		—		—		—
Total interest income recognized	$	692	$	600	$	1,816	$	1,822



	Three months ended				Nine months ended
	September 30,				September 30,
	2019		2018		2019
	(Dollars in thousands)
Commercial	$	54,410	$	27,671	$	49,265	$	26,849
Energy	13,623		17,683		15,091		18,992
Commercial real estate	16,690		8,055		16,528		8,101
Construction and land development	—		—		—		—
Residential real estate	2,538		2,046		2,354		2,059
Equity lines of credit	—		—		—		—
Consumer installment	—		—		—		—
Total average impaired loans	$	87,261	$	55,455	$	83,238	$	56,001

Financing Receivable, Nonaccrual

The following table presents the Company’s non-accrual loans at September 30, 2019 and December 31, 2018:



	September 30, 2019		December 31, 2018
	(Dollars in thousands)
Commercial	$	34,201	$	4,781
Energy	4,677		9,219
Commercial real estate	2,680		3,517
Construction and land development	—		—
Residential real estate	2,068		301
Equity lines of credit	—		—
Consumer installment	—		—
Total non-accrual loans	$	43,626	$	17,818

Financing Receivable, Troubled Debt Restructuring

In addition, the balance of those loans that are in default at any time during the past twelve months at September 30, 2019 and December 31, 2018 is provided below:



	September 30, 2019					December 31, 2018
	Number of Loans	Outstanding Balance		Balance 90 days past due at any time during previous 12 months⁽¹⁾		Number of Loans	Outstanding Balance		Balance 90 days past due at any time during previous 12 months⁽¹⁾
	(Dollars in thousands)
Commercial	7	$	36,865	$	—	6	$	5,022	$	55
Energy	2	2,969		—		2	3,631		—
Commercial real estate	3	4,947		—		2	1,382		—
Construction and land development	—	—		—		—	—		—
Residential real estate	—	—		—		1	237		—
Equity lines of credit	—	—		—		—	—		—
Consumer installment	—	—		—		—	—		—
Total restructured loans	12	$	44,781	$	—	11	$	10,272	$	55
⁽¹⁾ Default is considered to mean 90 days or more past due as to interest or principal.

The table below presents loans restructured during the three- and nine-months ended September 30, 2019 and 2018, including the post-modification outstanding balance and the type of concession made:



	Three Months Ended				Nine Months Ended
	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
	(Dollars in thousands)
Commercial
- Deferred payment	$	—	$	—	$	—	$	61
- Reduction of monthly payment	—		—		994		—
- Extension of maturity date	—		—		30,005		300
Energy
- Reduction of monthly payment	—		—		—		2,972
Commercial real estate
- Reduction of monthly payment	—		—		3,767		—
- Interest rate reduction	—		1,153		—		2,256
Total troubled debt restructurings	$	—	$	1,153	$	34,766	$	5,589

Derivatives and Hedging (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

As of September 30, 2019 and December 31, 2018, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships:



	September 30, 2019			December 31, 2018
Product	Number of Instruments	Notional Amount		Number of Instruments	Notional Amount
	(Dollars in thousands)
Back-to-back swaps	46	$	308,960	20	$	77,709

The table below presents the fair value of the Company’s derivative financial instruments and their classification on the Balance Sheet as of September 30, 2019 and December 31, 2018:



	Asset Derivatives					Liability Derivatives
	Balance Sheet	September 30,		December 31,		Balance Sheet	September 30,		December 31,
	Location	2019		2018		Location	2019		2018
	(Dollars in thousands)
Derivatives not designated as hedging instruments
Interest rate products	Other assets	$	13,735	$	1,051	Other liabilities	$	13,782	$	1,136

Offsetting Assets

The tables below show a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 2019 and December 31, 2018:



September 30, 2019
(Dollars in thousands)
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets and Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets presented in the Statement of Financial Position		Financial Instruments		Cash Collateral Received		Net Amount
Offsetting of derivative assets
Derivatives	$	13,735	$	—	$	13,735	$	—	$	—	$	13,735
Offsetting of derivative liabilities
Derivatives	$	13,782	$	—	$	13,782	$	—	$	—	$	13,782



December 31, 2018
(Dollars in thousands)
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets and Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets presented in the Statement of Financial Position		Financial Instruments		Cash Collateral Received		Net Amount
Offsetting of derivative assets
Derivatives	$	1,051	$	—	$	1,051	$	72	$	—	$	979
Offsetting of derivative liabilities
Derivatives	$	1,136	$	—	$	1,136	$	72	$	—	$	1,064

Offsetting Liabilities

The tables below show a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 2019 and December 31, 2018:



September 30, 2019
(Dollars in thousands)
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets and Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets presented in the Statement of Financial Position		Financial Instruments		Cash Collateral Received		Net Amount
Offsetting of derivative assets
Derivatives	$	13,735	$	—	$	13,735	$	—	$	—	$	13,735
Offsetting of derivative liabilities
Derivatives	$	13,782	$	—	$	13,782	$	—	$	—	$	13,782



December 31, 2018
(Dollars in thousands)
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets and Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets presented in the Statement of Financial Position		Financial Instruments		Cash Collateral Received		Net Amount
Offsetting of derivative assets
Derivatives	$	1,051	$	—	$	1,051	$	72	$	—	$	979
Offsetting of derivative liabilities
Derivatives	$	1,136	$	—	$	1,136	$	72	$	—	$	1,064

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details

Interest-Bearing Deposits and Borrowings (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Time Deposit Maturities and Borrowings

The scheduled maturities, excluding interest, of the Company’s borrowings at September 30, 2019 were as follows:



	September 30, 2019
	Within One Year		One to Two Years		Two to Three Years		Three to Four Years		Four to Five Years		After Five Years		Total
	(Dollars in thousands)
Time deposits	$	822,439	$	216,486	$	105,559	$	52,055	$	25,215	$	—	$	1,221,754
Fed funds purchased & repurchase agreements	49,810		—		—		—		—		—		49,810
FHLB borrowings	24,000		76,500		16,500		39,704		—		151,100		307,804
Trust preferred securities⁽¹⁾	—		—		—		—		—		912		912
	$	896,249	$	292,986	$	122,059	$	91,759	$	25,215	$	152,012	$	1,580,280

⁽¹⁾ The contract value of the trust preferred securities is $2.5 million and is currently being accreted to the maturity date of 2035.

Change in Accumulated Other Comprehensive Income (AOCI) (Tables)

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Amounts reclassified from AOCI and the affected line items in the consolidated Statements of Income during the three and nine months ended September 30, 2019 and 2018, were as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,				Affected Line Item in the
	2019		2018		2019		2018		Statements of Income
	(Dollars in thousands)
Unrealized gains on available-for-sale securities	$	34	$	195	$	467	$	608	Gain on sale of available for sale securities
Amount reclassified before tax	34		195		467		608
Less: tax effect	9		47		115		149		Income tax expense
Net reclassified amount	$	25	$	148	$	352	$	459

Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations

The Company’s and the Bank’s actual capital amounts and ratios as of September 30, 2019 and December 31, 2018 are presented in the following table



	Actual				Minimum Capital Required - Basel III Phase-In Schedule				Minimum Capital Required - Basel III Fully Phase-In				Required to be Considered Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
September 30, 2019
Total Capital to Risk-Weighted Assets
Consolidated	$	618,407	13.9	%	$	467,160	10.5	%	$	467,160	10.5	%	N/A		N/A
Bank	567,667		12.8		467,085		10.5		467,085		10.5		$	444,843	10.0	%
Tier I Capital to Risk-Weighted Assets
Consolidated	575,412		12.9		378,177		8.5		378,177		8.5		N/A		N/A
Bank	524,672		11.8		378,117		8.5		378,117		8.5		355,875		8.0
Common Equity Tier 1 to Risk-Weighted Assets
Consolidated	574,500		12.9		311,440		7.0		311,440		7.0		N/A		N/A
Bank	524,672		11.8		311,390		7.0		311,390		7.0		289,148		6.5
Tier I Capital to Average Assets
Consolidated	575,412		12.6		183,152		4.0		183,152		4.0		N/A		N/A
Bank	$	524,672	11.5	%	$	183,109	4.0	%	$	183,109	4.0	%	$	228,886	5.0	%
December 31, 2018
Total Capital to Risk-Weighted Assets
Consolidated	$	521,111	13.5	%	$	380,873	9.9	%	$	404,979	10.5	%	N/A		N/A
Bank	481,287		12.5		380,369		9.9		404,443		10.5		$	385,184	10.0	%
Tier I Capital to Risk-Weighted Assets
Consolidated	483,285		12.5		303,734		7.9		327,840		8.5		N/A		N/A
Bank	443,461		11.5		303,332		7.9		327,406		8.5		308,147		8.0
Common Equity Tier 1 to Risk-Weighted Assets
Consolidated	453,049		11.7		245,880		6.4		269,986		7.0		N/A		N/A
Bank	443,461		11.5		245,555		6.4		269,629		7.0		250,369		6.5
Tier I Capital to Average Assets
Consolidated	483,285		12.4		155,538		4.0		155,538		4.0		N/A		N/A
Bank	$	443,461	11.4	%	$	155,420	4.0	%	$	155,420	4.0	%	$	194,275	5.0	%

Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table disaggregates the non-interest income subject to ASU 2014-09 by category:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2019		2018			2019		2018
	(Dollars in thousands)
Non-interest income subject to ASU 2014-09
Service charges and fees (rebates) on customer accounts	$	72	$	(100	)	$	441	$	506
ATM and credit card interchange income	476		301			1,312		827
International fees	199		160			506		579
Other fees	12		10			104		30
Total non-interest income from contracts with customers	759		371			2,363		1,942
Non-interest income not subject to ASU 2014-09
Other non-interest income	2,453		814			4,166		2,946
Total non-interest income	$	3,212	$	1,185		$	6,529	$	4,888

Equity-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Share-based Payment Arrangement, Expensed and Capitalized, Amount

The table below summarizes the stock-based compensation for the three and nine-months ended September 30, 2019 and 2018:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(Dollars in thousands)
Stock appreciation rights	$	446	$	220	$	977	$	1,905
Performance based restricted units and stock	159		28		409		524
Restricted stock units	510		280		1,528		1,957
Restricted stock awards	209		—		656		—
Employee stock purchase plan	—		38		36		127
Total stock-based compensation	$	1,324	$	566	$	3,606	$	4,513

Income Tax (Tables)

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the income tax expense (benefit) at the statutory rate to the Company’s actual income tax expense (benefit) is shown below:



	Three months ended						Nine months ended
	September 30,						September 30,
	2019			2018			2019			2018
	(Dollars in thousands)
Computed at the statutory rate (21%)	$	2,725		$	1,529		$	7,241		$	1,754
Increase (decrease) resulting from
Tax-exempt income	(722		)	(860		)	(2,147		)	(2,754		)
Nondeductible expenses	71			87			208			261
State tax credit	—			—			(1,361		)	—
State income taxes	566			124			1,526			245
Equity based compensation	(5		)	—			(66		)	(400		)
Other adjustments	(43		)	44			(93		)	(10		)
Actual tax expense (benefit)	$	2,592		$	924		$	5,308		$	(904	)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences related to deferred taxes shown on the consolidated Balance Sheets are presented below:



	September 30, 2019			December 31, 2018
	(Dollars in thousands)
Deferred tax assets
Net unrealized loss on securities available-for-sale	$	—		$	986
Allowance for loan losses	10,637			9,358
Lease incentive	306			329
Impairment of available for sale securities	498			498
Valuation allowance on real estate	—			396
Loan fees	2,202			2,135
Net operating loss carryover	370			398
Accrued expenses	105			1,927
Deferred compensation	2,317			1,838
Alternative minimum tax credits	—			2,365
State tax credit	3,517			2,506
Other	63			79
	20,015			22,815
Deferred tax liability
Fair market value adjustments - trust preferred securities	(350		)	(356		)
Net unrealized gain on securities available-for-sale	(5,812		)	—
FHLB stock basis	(936		)	(739		)
Premises and equipment	(4,301		)	(5,019		)
Other	(1,187		)	(385		)
	(12,586		)	(6,499		)
Net deferred tax asset	$	7,429		$	16,316

Disclosures about Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis



			September 30, 2019
			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(Dollars in thousands)
Available-for-sale securities
Mortgage-backed - GSE residential	$	160,714	$	—	$	160,714	$	—
Collateralized mortgage obligations - GSE residential	148,675		—		148,675		—
State and political subdivisions	420,009		—		420,009		—
Corporate bonds	1,536		—		1,536		—
Mutual funds	2,159		—		2,159		—
Derivative assets	13,735		—		13,735		—
Derivative liabilities	$	13,782	$	—	$	13,782	$	—



			December 31, 2018
			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(Dollars in thousands)
Available-for-sale securities
Mortgage-backed - GSE residential	$	129,287	$	—	$	129,287	$	—
Collateralized mortgage obligations - GSE residential	152,626		—		152,626		—
State and political subdivisions	378,058		—		378,058		—
Corporate bonds	1,657		—		1,657		—
Mutual funds	2,050		—		2,050		—
Derivative assets	1,051		—		1,051		—
Derivative liabilities	$	1,136	$	—	$	1,136	$	—

Fair Value Measurements, Nonrecurring



			September 30, 2019
			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(Dollars in thousands)
Collateral-dependent impaired loans	$	40,220	$	—	$	—	$	40,220
Premises and equipment held-for-sale	—		—		—		—
Foreclosed assets held for sale	$	2,471	$	—	$	—	$	2,471



			December 31, 2018
			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(Dollars in thousands)
Collateral-dependent impaired loans	$	50,288	$	—	$	—	$	50,288
Premises and equipment held-for-sale	3,444		—		3,444		—
Foreclosed assets held for sale	$	—	$	—	$	—	$	—

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements at September 30, 2019 and December 31, 2018:



	September 30, 2019
	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
	(Dollars in thousands)
Collateral-dependent impaired loans	$	40,220	Market comparable properties	Marketability discount	10% - 15% (12%)
Foreclosed assets held for sale	$	2,471	Market comparable properties	Marketability discount	25%



	December 31, 2018
	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
	(Dollars in thousands)
Collateral-dependent impaired loans	$	50,288	Market comparable properties	Marketability discount	10% - 15% (12%)
Foreclosed assets held for sale	$	—

Fair Value, by Balance Sheet Grouping

The following tables present the estimated fair values of the Company’s financial instruments at September 30, 2019 and December 31, 2018:



	September 30, 2019
	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Financial Assets
Cash and cash equivalents	$	128,126	$	128,126	$	—	$	—	$	128,126
Available-for-sale securities	733,093		—		733,093		—		733,093
Loans, net of allowance for loan losses	3,586,797		—		—		3,607,276		3,607,276
Restricted equity securities	16,053		—		—		16,053		16,053
Interest receivable	15,909		—		15,909		—		15,909
Derivative assets	13,735		—		13,735		—		13,735
	$	4,493,713	$	128,126	$	762,737	$	3,623,329	$	4,514,192
Financial Liabilities
Deposits	$	3,658,108	$	513,832	$	—	$	3,162,740	$	3,676,572
Federal funds purchased and repurchase agreements	49,810		—		49,809		—		49,809
Federal Home Loan Bank advances	307,804		—		311,583		—		311,583
Other borrowings	912		—		2,054		—		2,054
Interest payable	4,643		—		4,643		—		4,643
Derivative liabilities	13,782		—		13,782		—		13,782
	$	4,035,059	$	513,832	$	381,871	$	3,162,740	$	4,058,443



	December 31, 2018
	Carrying		Fair Value Measurements
	Amount		Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Financial Assets
Cash and cash equivalents	$	216,541	$	216,541	$	—	$	—	$	216,541
Available-for-sale securities	661,628		—		661,628		—		661,628
Loans, net of allowance for loan losses	3,022,921		—		—		3,027,930		3,027,930
Restricted equity securities	14,525		—		—		14,525		14,525
Interest receivable	14,092		—		14,092		—		14,092
Derivative assets	1,051		—		1,051		—		1,051
	$	3,930,758	$	216,541	$	676,771	$	3,042,455	$	3,935,767
Financial Liabilities
Deposits	$	3,208,097	$	484,284	$	—	$	2,696,212	$	3,180,496
Federal funds purchased and repurchase agreements	75,406		—		75,404		—		75,404
Federal Home Loan Bank advances	312,985		—		298,017		—		298,017
Other borrowings	884		—		2,022		—		2,022
Interest payable	2,868		—		2,868		—		2,868
Derivative liabilities	1,136		—		1,136		—		1,136
	$	3,601,376	$	484,284	$	379,447	$	2,696,212	$	3,559,943

Commitments and Credit Risk (Tables)

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of Commitments

The Company had the following commitments at September 30, 2019 and December 31, 2018:



	September 30, 2019		December 31, 2018
	(Dollars in thousands)
Commitments to originate loans	$	176,598	$	190,997
Standby letters of credit	35,699		32,439
Lines of credit	1,255,764		1,174,166
Future lease commitment	19,054		19,054
Total	$	1,487,115	$	1,416,656

Nature of Operations and Summary of Significant Accounting Policies (Details)

Sep. 17, 2019

USD ($)

$ / shares

Aug. 19, 2019

USD ($)

$ / shares

Dec. 21, 2018

Sep. 30, 2019

USD ($)

Jan. 01, 2019

USD ($)

Cash and cash equivalents held at bank

$ 85,000,000.0

63,300,000

$ 18,200,000

Shares sold and issued (in shares) | shares

5,750,000

Price of stock per share (in dollars per share) | $ / shares

$ 14.50

Total proceeds on sale of stock

$ 75,600,000

Stockholders Public Offering

Shares sold and issued (in shares) | shares

1,261,589

Price of stock per share (in dollars per share) | $ / shares

$ 14.50

Over-Allotment Option

Shares sold and issued (in shares) | shares

844,362

Price of stock per share (in dollars per share) | $ / shares

$ 14.50

Total proceeds on sale of stock

$ 11,400,000

Accounting Standards Update 2018-07

Accounting Standards Update 2016-01

$ 0

Share-based Payment Arrangement, Nonemployee

$ 0

Share-based awards (in shares) | shares

216,960

Share-based Payment Arrangement, Nonemployee | Performance Based Restricted Stock Units

Share-based awards (in shares) | shares

116,960

Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2016-01

Retained Earnings | Accounting Standards Update 2018-07

$ 68,700

Retained Earnings | Accounting Standards Update 2016-01

^[1]

(2,159,000)

Additional Paid-in Capital | Accounting Standards Update 2018-07

^[1]

(68,700)

Less: preferred stock dividends | $

$ 2,159,000

[1]	Share data has been adjusted to reflect a 2-for-1 stock split effected in the form of a dividend on December 21, 2018.

Earnings Per Share (Details)
$ / shares in Units, $ in Thousands

3 Months Ended

9 Months Ended

Dec. 21, 2018

Sep. 30, 2019

USD ($)

$ / shares

Sep. 30, 2018

USD ($)

$ / shares

Sep. 30, 2019

USD ($)

$ / shares

Sep. 30, 2018

USD ($)

$ / shares

Earnings per Share

Net income | $

$ 10,384

$ 6,354

$ 29,173

$ 9,256

525

175

1,575

Net income available to common stockholders | $

$ 10,384

$ 5,829

$ 28,998

$ 7,681

Weighted average common shares (in shares) | shares

48,351,553

37,790,614

46,239,021

33,918,540

Earnings per share (in dollars per share) | $ / shares

^[1]

$ 0.22

$ 0.15

$ 0.63

$ 0.23

Dilutive Earnings Per Share

Net income available to common stockholders | $

$ 10,384

$ 5,829

$ 28,998

$ 7,681

Effect of dilutive shares (in shares) | shares

812,996

988,010

842,706

1,133,888

Weighted average dilutive common shares (in shares) | shares

49,164,549

38,778,624

47,081,727

35,052,428

Diluted earnings per share (in dollars per share) | $ / shares

^[1]

$ 0.21

$ 0.15

$ 0.61

$ 0.22

SARs, RSUs, RSAs, PRSUs, PSSs not included because to do so would be antidilutive (in shares) | shares

541,556

442,452

507,167

273,180

Stock split ratio

[1]	Share data has been adjusted to reflect a 2-for-1 stock split effected in the form of a dividend on December 21, 2018.

Securities - Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt and Equity Securities, FV-NI [Line Items]
Available for sale securities - tax-exempt	$ 409,562	$ 367,545
Available-for-sale debt securities
Amortized Cost	707,221	665,533
Gross Unrealized Gains	24,154	4,427
Gross Unrealized Losses	441	8,332
Approximate Fair Value	730,934	661,628
Equity securities
Amortized Cost	2,179
Amortized Cost		2,141
Gross Unrealized Gains	0
Gross Unrealized Gains		0
Gross Unrealized Losses	20
Gross Unrealized Losses		91
Approximate Fair Value	2,159
Approximate Fair Value		2,050
Total available-for-sale securities
Amortized Cost	709,400
Amortized Cost		667,674
Gross Unrealized Gains	24,154
Gross Unrealized Gains		4,427
Gross Unrealized Losses	461
Gross Unrealized Losses		8,423
Approximate Fair Value	733,093
Approximate Fair Value		663,678
Mortgage-backed - GSE residential
Available-for-sale debt securities
Amortized Cost	158,897	131,215
Gross Unrealized Gains	2,009	162
Gross Unrealized Losses	192	2,090
Approximate Fair Value	160,714	129,287
Collateralized mortgage obligations - GSE residential
Available-for-sale debt securities
Amortized Cost	147,917	154,110
Gross Unrealized Gains	1,002	287
Gross Unrealized Losses	244	1,771
Approximate Fair Value	148,675	152,626
State and political subdivisions
Available-for-sale debt securities
Amortized Cost	398,963	378,595
Gross Unrealized Gains	21,051	3,908
Gross Unrealized Losses	5	4,445
Approximate Fair Value	420,009	378,058
Corporate bonds
Available-for-sale debt securities
Amortized Cost	1,444	1,613
Gross Unrealized Gains	92	70
Gross Unrealized Losses	0	26
Approximate Fair Value	1,536	1,657
Mutual funds
Equity securities
Amortized Cost	2,179
Amortized Cost		2,141
Gross Unrealized Gains	0
Gross Unrealized Gains		0
Gross Unrealized Losses	$ 20
Gross Unrealized Losses		91
Approximate Fair Value		$ 2,050

Securities - Other Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Securities pledged as collateral	$ 36.6	$ 108.6

Securities - Amortized Cost and Fair Value by Maturity Date (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Amortized Cost
Within one year	$ 0
One to five years	3,580
Five to ten years	46,141
After ten years	657,500
Amortized Cost	707,221	$ 665,533
Fair Value
Within one year	0
One to five years	3,674
Five to ten years	49,089
After ten years	678,171
Fair Value	730,934	661,628
Mortgage-backed - GSE residential
Amortized Cost
Within one year	0
One to five years	0
Five to ten years	1,411
After ten years	157,486
Amortized Cost	158,897	131,215
Fair Value
Within one year	0
One to five years	0
Five to ten years	1,471
After ten years	159,243
Fair Value	160,714	129,287
Collateralized mortgage obligations - GSE residential
Amortized Cost
Within one year	0
One to five years	0
Five to ten years	2,876
After ten years	145,041
Amortized Cost	147,917	154,110
Fair Value
Within one year	0
One to five years	0
Five to ten years	3,011
After ten years	145,664
Fair Value	148,675	152,626
State and political subdivisions
Amortized Cost
Within one year	0
One to five years	3,580
Five to ten years	40,410
After ten years	354,973
Amortized Cost	398,963	378,595
Fair Value
Within one year	0
One to five years	3,674
Five to ten years	43,071
After ten years	373,264
Fair Value	420,009	378,058
Corporate bonds
Amortized Cost
Within one year	0
One to five years	0
Five to ten years	1,444
After ten years	0
Amortized Cost	1,444	1,613
Fair Value
Within one year	0
One to five years	0
Five to ten years	1,536
After ten years	0
Fair Value	$ 1,536	$ 1,657

Securities - Unrealized Losses (Details) $ in Thousands	Sep. 30, 2019 USD ($) securities	Dec. 31, 2018 USD ($) securities
Less than 12 Months
Fair Value	$ 55,791	$ 156,775
Unrealized Losses	$ 157	$ 1,647
Number of Securities \| securities	10	80
12 Months or More
Fair Value	$ 37,827	$ 210,363
Unrealized Losses	$ 284	$ 6,685
Number of Securities \| securities	16	105
Total
Fair Value	$ 93,618	$ 367,138
Unrealized Losses	$ 441	$ 8,332
Number of Securities \| securities	26	185
Mortgage-backed - GSE residential
Less than 12 Months
Fair Value	$ 3,988	$ 66,232
Unrealized Losses	$ 4	$ 369
Number of Securities \| securities	1	10
12 Months or More
Fair Value	$ 27,889	$ 44,280
Unrealized Losses	$ 188	$ 1,721
Number of Securities \| securities	5	11
Total
Fair Value	$ 31,877	$ 110,512
Unrealized Losses	$ 192	$ 2,090
Number of Securities \| securities	6	21
Collateralized mortgage obligations - GSE residential
Less than 12 Months
Fair Value	$ 48,851	$ 4,639
Unrealized Losses	$ 149	$ 42
Number of Securities \| securities	6	1
12 Months or More
Fair Value	$ 9,792	$ 68,362
Unrealized Losses	$ 95	$ 1,729
Number of Securities \| securities	10	20
Total
Fair Value	$ 58,643	$ 73,001
Unrealized Losses	$ 244	$ 1,771
Number of Securities \| securities	16	21
State and political subdivisions
Less than 12 Months
Fair Value	$ 2,952	$ 85,181
Unrealized Losses	$ 4	$ 1,210
Number of Securities \| securities	3	68
12 Months or More
Fair Value	$ 146	$ 97,721
Unrealized Losses	$ 1	$ 3,235
Number of Securities \| securities	1	74
Total
Fair Value	$ 3,098	$ 182,902
Unrealized Losses	$ 5	$ 4,445
Number of Securities \| securities	4	142
Corporate bonds
Less than 12 Months
Fair Value	$ 0	$ 723
Unrealized Losses	$ 0	$ 26
Number of Securities \| securities	0	1
12 Months or More
Fair Value	$ 0	$ 0
Unrealized Losses	$ 0	$ 0
Number of Securities \| securities	0	0
Total
Fair Value	$ 0	$ 723
Unrealized Losses	$ 0	$ 26
Number of Securities \| securities	0	1

Securities - Other Than Temporary Impairment Losses (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Gross gains on available-for-sale securities	$ 506,200	$ 2,000,000.0
Gross losses on available-for-sale securities	$ 39,400	$ 1,400,000

Securities - Equity Securities (Details) - USD ($)	3 Months Ended	9 Months Ended
Securities - Equity Securities (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Debt and Equity Securities, FV-NI [Line Items]
Mutual funds	$ 2,159,000	$ 2,159,000
Equity securities available for sale				$ 2,050,000
Net gains recognized during the period on equity securities	16,000	72,000
Less: net gains recognized during the period on equity securities sold during the period	0	0
Unrealized gain recognized during the reporting period on equity securities still held at the reporting date	$ 16,000	$ 72,000
Equity Securities \| Accumulated Other Comprehensive Income (Loss)
Debt and Equity Securities, FV-NI [Line Items]
Cumulative effect adjustment			$ 68,700

Loans and Allowance for Loan Leases - Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	$ 3,638,693		$ 3,069,379
Less: Allowance for loan losses	42,995	$ 42,852	37,826	$ 33,540	$ 30,197	$ 26,091
Less: Net deferred loan fees and costs	8,901		8,632
Net loans	3,586,797		3,022,921
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	1,312,647		1,134,414
Less: Allowance for loan losses	24,811	22,975	16,584	13,183	11,739	11,378
Energy
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	396,132		358,283
Less: Allowance for loan losses	5,377	7,300	10,262	9,141	7,957	7,726
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	993,153		846,561
Less: Allowance for loan losses	7,284	7,533	6,755	6,899	6,584	4,668
Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	527,582		440,032
Less: Allowance for loan losses	3,016	2,602	2,475	2,667	2,530	1,200
Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	365,435		246,275
Less: Allowance for loan losses	2,220	2,138	1,464	1,364	1,103	905
Equity lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	22,192		20,286
Less: Allowance for loan losses	160	155	159	174	170	122
Consumer installment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans	21,552		23,528
Less: Allowance for loan losses	$ 127	$ 149	$ 127	$ 112	$ 114	$ 92

Loans and Allowance for Loan Leases - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Allowance for loan losses
Beginning balance	$ 42,852	$ 30,197	$ 37,826	$ 26,091
Provision charged to expense	4,850	3,000	10,550	9,000
Charge-offs	(4,708)	(97)	(5,973)	(2,007)
Recoveries	1	440	592	456
Ending balance	42,995	33,540	42,995	33,540
Ending balance
Individually evaluated for impairment	11,814		11,814		$ 9,400
Collectively evaluated for impairment	31,181		31,181		28,426
Allocated to loans:
Individually evaluated for impairment	95,469		95,469		111,651
Collectively evaluated for impairment	3,543,224		3,543,224		2,957,728
Total Loans Receivable	3,638,693		3,638,693		3,069,379
Commercial
Allowance for loan losses
Beginning balance	22,975	11,739	16,584	11,378
Provision charged to expense	3,535	1,102	11,166	2,031
Charge-offs	(1,700)	(97)	(2,954)	(681)
Recoveries	1	439	15	455
Ending balance	24,811	13,183	24,811	13,183
Ending balance
Individually evaluated for impairment	10,398		10,398		5,814
Collectively evaluated for impairment	14,413		14,413		10,770
Allocated to loans:
Individually evaluated for impairment	66,162		66,162		78,147
Collectively evaluated for impairment	1,246,485		1,246,485		1,056,267
Total Loans Receivable	1,312,647		1,312,647		1,134,414
Energy
Allowance for loan losses
Beginning balance	7,300	7,957	10,262	7,726
Provision charged to expense	1,077	1,184	(2,461)	2,671
Charge-offs	(3,000)	0	(3,000)	(1,256)
Recoveries	0	0	576	0
Ending balance	5,377	9,141	5,377	9,141
Ending balance
Individually evaluated for impairment	854		854		3,108
Collectively evaluated for impairment	4,523		4,523		7,154
Allocated to loans:
Individually evaluated for impairment	10,226		10,226		16,250
Collectively evaluated for impairment	385,906		385,906		342,033
Total Loans Receivable	396,132		396,132		358,283
Commercial real estate
Allowance for loan losses
Beginning balance	7,533	6,584	6,755	4,668
Provision charged to expense	(249)	315	529	2,231
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	7,284	6,899	7,284	6,899
Ending balance
Individually evaluated for impairment	343		343		473
Collectively evaluated for impairment	6,941		6,941		6,282
Allocated to loans:
Individually evaluated for impairment	16,544		16,544		15,227
Collectively evaluated for impairment	976,609		976,609		831,334
Total Loans Receivable	993,153		993,153		846,561
Construction and land development
Allowance for loan losses
Beginning balance	2,602	2,530	2,475	1,200
Provision charged to expense	414	137	541	1,467
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	3,016	2,667	3,016	2,667
Ending balance
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	3,016		3,016		2,475
Allocated to loans:
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	527,582		527,582		440,032
Total Loans Receivable	527,582		527,582		440,032
Residential real estate
Allowance for loan losses
Beginning balance	2,138	1,103	1,464	905
Provision charged to expense	82	261	756	459
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	2,220	1,364	2,220	1,364
Ending balance
Individually evaluated for impairment	219		219		5
Collectively evaluated for impairment	2,001		2,001		1,459
Allocated to loans:
Individually evaluated for impairment	2,537		2,537		2,027
Collectively evaluated for impairment	362,898		362,898		244,248
Total Loans Receivable	365,435		365,435		246,275
Equity lines of credit
Allowance for loan losses
Beginning balance	155	170	159	122
Provision charged to expense	5	4	1	77
Charge-offs	0	0	0	(25)
Recoveries	0	0	0	0
Ending balance	160	174	160	174
Ending balance
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	160		160		159
Allocated to loans:
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	22,192		22,192		20,286
Total Loans Receivable	22,192		22,192		20,286
Consumer installment
Allowance for loan losses
Beginning balance	149	114	127	92
Provision charged to expense	(14)	(3)	18	64
Charge-offs	(8)	0	(19)	(45)
Recoveries	0	1	1	1
Ending balance	127	$ 112	127	$ 112
Ending balance
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	127		127		127
Allocated to loans:
Individually evaluated for impairment	0		0		0
Collectively evaluated for impairment	21,552		21,552		23,528
Total Loans Receivable	$ 21,552		$ 21,552		$ 23,528

Loans and Allowance for Loan Leases - Loan Aging Analysis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financing Receivable, Past Due [Line Items]
Total Past Due	$ 73,251	$ 19,289
Current	3,565,442	3,050,090
Total Loans Receivable	3,638,693	3,069,379
Loans 90 Days and Accruing	642	0
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	61,941	3,062
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	2,785	619
90 Days or More
Financing Receivable, Past Due [Line Items]
Total Past Due	8,525	15,608
Commercial
Financing Receivable, Past Due [Line Items]
Total Past Due	45,925	5,177
Current	1,266,722	1,129,237
Total Loans Receivable	1,312,647	1,134,414
Loans 90 Days and Accruing	0	0
Commercial \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	42,039	1,040
Commercial \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	2,785	0
Commercial \| 90 Days or More
Financing Receivable, Past Due [Line Items]
Total Past Due	1,101	4,137
Energy
Financing Receivable, Past Due [Line Items]
Total Past Due	12,441	11,212
Current	383,691	347,071
Total Loans Receivable	396,132	358,283
Loans 90 Days and Accruing	642	0
Energy \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	7,122	1,994
Energy \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Energy \| 90 Days or More
Financing Receivable, Past Due [Line Items]
Total Past Due	5,319	9,218
Commercial real estate
Financing Receivable, Past Due [Line Items]
Total Past Due	410	2,678
Current	992,743	843,883
Total Loans Receivable	993,153	846,561
Loans 90 Days and Accruing	0	0
Commercial real estate \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	317	0
Commercial real estate \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0	425
Commercial real estate \| 90 Days or More
Financing Receivable, Past Due [Line Items]
Total Past Due	93	2,253
Construction and land development
Financing Receivable, Past Due [Line Items]
Total Past Due	12,345	0
Current	515,237	440,032
Total Loans Receivable	527,582	440,032
Loans 90 Days and Accruing	0	0
Construction and land development \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	12,345	0
Construction and land development \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Construction and land development \| 90 Days or More
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Residential real estate
Financing Receivable, Past Due [Line Items]
Total Past Due	2,080	222
Current	363,355	246,053
Total Loans Receivable	365,435	246,275
Loans 90 Days and Accruing	0	0
Residential real estate \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	68	28
Residential real estate \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0	194
Residential real estate \| 90 Days or More
Financing Receivable, Past Due [Line Items]
Total Past Due	2,012	0
Equity lines of credit
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Current	22,192	20,286
Total Loans Receivable	22,192	20,286
Loans 90 Days and Accruing	0	0
Equity lines of credit \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Equity lines of credit \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Equity lines of credit \| 90 Days or More
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Consumer installment
Financing Receivable, Past Due [Line Items]
Total Past Due	50	0
Current	21,502	23,528
Total Loans Receivable	21,552	23,528
Loans 90 Days and Accruing	0	0
Consumer installment \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	50	0
Consumer installment \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Consumer installment \| 90 Days or More
Financing Receivable, Past Due [Line Items]
Total Past Due	$ 0	$ 0

Loans and Allowance for Loan Leases - Impaired Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Recorded Balance
Loans with a specific valuation	$ 52,000	$ 59,700
Total	95,469	111,651
Unpaid Principal Balance
Total	95,469	111,651
Specific Allowance	11,814	9,400
Commercial
Recorded Balance
Loans without a specific valuation	25,770	40,151
Loans with a specific valuation	40,392	37,996
Total	66,162	78,147
Unpaid Principal Balance
Loans without a specific valuation	25,770	40,151
Loans with a specific valuation	40,392	37,996
Total	66,162	78,147
Specific Allowance	10,398	5,814
Energy
Recorded Balance
Loans without a specific valuation	2,969	2,789
Loans with a specific valuation	7,257	13,461
Total	10,226	16,250
Unpaid Principal Balance
Loans without a specific valuation	2,969	2,789
Loans with a specific valuation	7,257	13,461
Total	10,226	16,250
Specific Allowance	854	3,108
Commercial real estate
Recorded Balance
Loans without a specific valuation	12,501	7,059
Loans with a specific valuation	4,043	8,168
Total	16,544	15,227
Unpaid Principal Balance
Loans without a specific valuation	12,501	7,059
Loans with a specific valuation	4,043	8,168
Total	16,544	15,227
Specific Allowance	343	473
Construction and land development
Recorded Balance
Loans without a specific valuation	0	0
Loans with a specific valuation	0	0
Total	0	0
Unpaid Principal Balance
Loans without a specific valuation	0	0
Loans with a specific valuation	0	0
Total	0	0
Specific Allowance	0	0
Residential real estate
Recorded Balance
Loans without a specific valuation	2,195	1,964
Loans with a specific valuation	342	63
Total	2,537	2,027
Unpaid Principal Balance
Loans without a specific valuation	2,195	1,964
Loans with a specific valuation	342	63
Total	2,537	2,027
Specific Allowance	219	5
Equity lines of credit
Recorded Balance
Loans without a specific valuation	0	0
Loans with a specific valuation	0	0
Total	0	0
Unpaid Principal Balance
Loans without a specific valuation	0	0
Loans with a specific valuation	0	0
Total	0	0
Specific Allowance	0	0
Consumer installment
Recorded Balance
Loans without a specific valuation	0	0
Loans with a specific valuation	0	0
Total	0	0
Unpaid Principal Balance
Loans without a specific valuation	0	0
Loans with a specific valuation	0	0
Total	0	0
Specific Allowance	$ 0	$ 0

Loans and Allowance for Loan Leases - Impaired Loan Interest Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Financing Receivable, Impaired [Line Items]
Total interest income recognized	$ 692	$ 600	$ 1,816	$ 1,822
Total average impaired loans	87,261	55,455	83,238	56,001
Commercial
Financing Receivable, Impaired [Line Items]
Total interest income recognized	386	402	862	1,110
Total average impaired loans	54,410	27,671	49,265	26,849
Energy
Financing Receivable, Impaired [Line Items]
Total interest income recognized	98	93	324	369
Total average impaired loans	13,623	17,683	15,091	18,992
Commercial real estate
Financing Receivable, Impaired [Line Items]
Total interest income recognized	200	88	613	291
Total average impaired loans	16,690	8,055	16,528	8,101
Construction and land development
Financing Receivable, Impaired [Line Items]
Total interest income recognized	0	0	0	0
Total average impaired loans	0	0	0	0
Residential real estate
Financing Receivable, Impaired [Line Items]
Total interest income recognized	8	17	17	52
Total average impaired loans	2,538	2,046	2,354	2,059
Equity lines of credit
Financing Receivable, Impaired [Line Items]
Total interest income recognized	0	0	0	0
Total average impaired loans	0	0	0	0
Consumer installment
Financing Receivable, Impaired [Line Items]
Total interest income recognized	0	0	0	0
Total average impaired loans	$ 0	$ 0	$ 0	$ 0

Loans and Allowance for Loan Leases - Non-Accrual Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financing Receivable, Nonaccrual [Line Items]
Total non-accrual loans	$ 43,626	$ 17,818
Commercial
Financing Receivable, Nonaccrual [Line Items]
Total non-accrual loans	34,201	4,781
Energy
Financing Receivable, Nonaccrual [Line Items]
Total non-accrual loans	4,677	9,219
Commercial real estate
Financing Receivable, Nonaccrual [Line Items]
Total non-accrual loans	2,680	3,517
Construction and land development
Financing Receivable, Nonaccrual [Line Items]
Total non-accrual loans	0	0
Residential real estate
Financing Receivable, Nonaccrual [Line Items]
Total non-accrual loans	2,068	301
Equity lines of credit
Financing Receivable, Nonaccrual [Line Items]
Total non-accrual loans	0	0
Consumer installment
Financing Receivable, Nonaccrual [Line Items]
Total non-accrual loans	$ 0	$ 0

Loans and Allowance for Loan Leases - Troubled Debt Restructuring Loans (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) contract	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($) contract
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total troubled debt restructurings	$ 0	$ 1,153	$ 34,766	$ 5,589
Number of Loans \| contract			12		11
Outstanding Balance	44,781		$ 44,781		$ 10,272
Balance 90 days past due at any time during previous 12 months(1)			0		55
Commitments to borrowers	896		896		0
Increase in allowance for loan losses from loan restructuring			$ 8,800		$ 2,400
Commercial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans \| contract			7		6
Outstanding Balance	36,865		$ 36,865		$ 5,022
Balance 90 days past due at any time during previous 12 months(1)			$ 0		$ 55
Energy
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans \| contract			2		2
Outstanding Balance	2,969		$ 2,969		$ 3,631
Balance 90 days past due at any time during previous 12 months(1)			$ 0		$ 0
Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans \| contract			3		2
Outstanding Balance	4,947		$ 4,947		$ 1,382
Balance 90 days past due at any time during previous 12 months(1)			$ 0		$ 0
Construction and land development
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans \| contract			0		0
Outstanding Balance	0		$ 0		$ 0
Balance 90 days past due at any time during previous 12 months(1)			$ 0		$ 0
Residential real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans \| contract			0		1
Outstanding Balance	0		$ 0		$ 237
Balance 90 days past due at any time during previous 12 months(1)			$ 0		$ 0
Equity lines of credit
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans \| contract			0		0
Outstanding Balance	0		$ 0		$ 0
Balance 90 days past due at any time during previous 12 months(1)			$ 0		$ 0
Consumer installment
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans \| contract			0		0
Outstanding Balance	0		$ 0		$ 0
Balance 90 days past due at any time during previous 12 months(1)			0		$ 0
Deferred Payment \| Commercial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total troubled debt restructurings	0	0	0	61
Reduction Of Monthly Payment \| Commercial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total troubled debt restructurings	0	0	994	0
Reduction Of Monthly Payment \| Energy
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total troubled debt restructurings	0	0	0	2,972
Reduction Of Monthly Payment \| Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total troubled debt restructurings	0	0	3,767	0
Extension of Maturity Date \| Commercial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total troubled debt restructurings	0	0	30,005	300
Interest Rate Reduction \| Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total troubled debt restructurings	$ 0	$ 1,153	$ 0	$ 2,256

Derivatives and Hedging - Derivatives Not Designated as Hedging Instruments (Details) - Interest Rate Swap - Not Designated as Hedging Instrument $ in Thousands	Sep. 30, 2019 USD ($) derivative	Dec. 31, 2018 USD ($) derivative
Derivative [Line Items]
Number of Instruments \| derivative	46	20
Notional Amount \| $	$ 308,960	$ 77,709

Derivatives and Hedging - Fair Value of Derivatives (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Derivative [Line Items]
Asset Derivatives	$ 13,735	$ 1,051
Liability Derivatives	13,782	1,136
Other Assets \| Not Designated as Hedging Instrument \| Interest Rate Products
Derivative [Line Items]
Asset Derivatives	13,735	1,051
Other Liabilities \| Not Designated as Hedging Instrument \| Interest Rate Products
Derivative [Line Items]
Liability Derivatives	$ 13,782	$ 1,136

Derivatives and Hedging - Offsetting of Derivatives (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Offsetting of derivative assets
Gross Amounts of Recognized Assets and Liabilities	$ 13,735	$ 1,051
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Assets presented in the Statement of Financial Position	13,735	1,051
Financial Instruments	0	72
Cash Collateral Received	0	0
Net Amount	13,735	979
Offsetting of derivative liabilities
Gross Amounts of Recognized Assets and Liabilities	13,782	1,136
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Assets presented in the Statement of Financial Position	13,782	1,136
Financial Instruments	0	72
Cash Collateral Received	0	0
Net Amount	$ 13,782	$ 1,064

Derivatives and Hedging - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Derivative [Line Items]
Swap fee income	$ 1,879	$ 253	$ 2,415	$ 299
Collateral posted	18,200		18,200
Termination value of assets	13,800		$ 13,800
Change in Accounting Method Accounted for as Change in Estimate
Derivative [Line Items]
Swap fee income	$ 800

Interest-Bearing Deposits and Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Time deposits
Within One Year	$ 822,439
One to Two Years	216,486
Two to Three Years	105,559
Three to Four Years	52,055
Four to Five Years	25,215
After Five Years	0
Total	1,221,754	$ 1,009,677
Fed funds purchased & repurchase agreements	49,810	75,406
FHLB borrowings
Within One Year	24,000
One to Two Years	76,500
Two to Three Years	16,500
Three to Four Years	39,704
Four to Five Years	0
After Five Years	151,100
Total	307,804	$ 312,985
Total
Within One Year	896,249
One to Two Years	292,986
Two to Three Years	122,059
Three to Four Years	91,759
Four to Five Years	25,215
After Five Years	152,012
Total	1,580,280
Trust preferred securities
Trust preferred securities
Within One Year	0
One to Two Years	0
Two to Three Years	0
Three to Four Years	0
Four to Five Years	0
After Five Years	912
Total	912
Total
Contract value	$ 2,500

Change in Accumulated Other Comprehensive Income (AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Gain on sale of available for sale securities	$ 34	$ 195	$ 467	$ 608
Income tax expense	2,592	924	5,308	(904)
Net Income	10,384	6,354	29,173	9,256
Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Gain on sale of available for sale securities	34	195	467	608
Income tax expense	9	47	115	149
Net Income	$ 25	$ 148	$ 352	$ 459