falsedesktopLTXB2019-06-30000148705219000090{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Large accelerated filer\t☒\tAccelerated filer\t☐\nNon-accelerated filer\t☐\tSmaller reporting company\t☐\nEmerging growth company\t☐\t\t\nIf an emerging growth company indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.\t\t\t☐\n", "q10k_tbl_1": "PART I -- FINANCIAL INFORMATION\t3\nItem 1. Financial Statements:\t3\nConsolidated Balance Sheets at June 30 2019 (unaudited) and December 31 2018\t3\nConsolidated Statements of Income (unaudited) for the three and six months ended June 30 2019 and 2018\t4\nConsolidated Statements of Comprehensive Income (unaudited) for the three and six months ended June 30 2019 and 2018\t5\nConsolidated Statements of Changes in Shareholders' Equity (unaudited) for the three and six months ended June 30 2019 and 2018\t6\nConsolidated Statements of Cash Flows (unaudited) for the six months ended June 30 2019 and 2018\t7\nCondensed Notes to Unaudited Consolidated Interim Financial Statements\t9\nItem 2. Management's Discussion and Analysis of Financial Condition and Results of Operations\t35\nItem 3. Quantitative and Qualitative Disclosures about Market Risk\t54\nItem 4. Controls and Procedures\t57\nPART II-OTHER INFORMATION\t58\nItem 1. Legal Proceedings\t58\nItem 1.A. Risk Factors\t58\nItem 2. Unregistered Sales of Equity Securities and Use of Proceeds\t58\nItem 3. Defaults Upon Senior Securities\t58\nItem 4. Mine Safety Disclosures\t58\nItem 5. Other Information\t58\nItem 6. Exhibits\t59\nSIGNATURE PAGE\t61\n", "q10k_tbl_2": "\tJune 30 2019\tDecember 31 2018\nASSETS\t(unaudited)\t\nCash and due from financial institutions\t56949\t60416\nShort-term interest-bearing deposits in other financial institutions\t206894\t208777\nTotal cash and cash equivalents\t263843\t269193\nSecurities available for sale at fair value\t459749\t471746\nSecurities held to maturity (fair value: June 30 2019 - $128864; December 31 2018- $144791)\t127836\t146046\nLoans held for sale at fair value\t46571\t23193\nLoans held for investment:\t\t\nLoans held for investment (net of allowance for loan losses of $92219 at June 30 2019 and $67428 at December 31 2018)\t6999607\t6733692\nLoans held for investment - Warehouse Purchase Program\t1542684\t960404\nTotal loans held for investment\t8542291\t7694096\nFederal Home Loan Bank (\"FHLB\") stock and other restricted securities at cost\t79195\t56226\nBank-owned life insurance\t59724\t59036\nPremises and equipment net\t106313\t73073\nGoodwill\t178559\t178559\nOther assets\t71853\t79974\nTotal assets\t9935934\t9051142\nLIABILITIES AND SHAREHOLDERS' EQUITY\t\t\nDeposits\t\t\nNon-interest-bearing demand\t1847229\t1773762\nInterest-bearing demand\t855026\t826755\nSavings and money market\t2548966\t2455787\nTime\t1804569\t1785411\nTotal deposits\t7055790\t6841715\nFHLB advances\t1384765\t825409\nRepurchase agreements\t52414\t50340\nSubordinated debt\t135257\t135012\nAccrued expenses and other liabilities\t165063\t104299\nTotal liabilities\t8793289\t7956775\nCommitments and contingent liabilities (See Note 11)\t\t\nShareholders' equity\t\t\nPreferred stock $.01 par value; 10000000 shares authorized; 0 shares issued - June 30 2019 and December 31 2018\t0\t0\nCommon stock $.01 par value; 90000000 shares authorized; 48833238 shares issued - June 30 2019 and 48505261 shares issued - December 31 2018\t488\t485\nAdditional paid-in capital\t628730\t619983\nRetained earnings\t523693\t491948\nAccumulated other comprehensive income (loss) net\t860\t(6658)\nUnearned Employee Stock Ownership Plan (ESOP) shares; 1112664 shares at June 30 2019 and 1139140 shares at December 31 2018\t(11126)\t(11391)\nTotal shareholders' equity\t1142645\t1094367\nTotal liabilities and shareholders' equity\t9935934\t9051142\nSee accompanying notes to consolidated financial statements.\t\t\n", "q10k_tbl_3": "\tThree Months Ended June 30\t\tSix Months Ended June 30\t\n\t2019\t2018\t2019\t2018\nInterest and dividend income\t\t\t\t\nLoans including fees\t108154\t98570\t208455\t189201\nTaxable securities\t3460\t3132\t7062\t6043\nNontaxable securities\t410\t641\t753\t1316\nInterest-bearing deposits in other financial institutions\t1370\t1097\t2647\t2066\nFHLB and FRB stock and other\t683\t551\t1264\t1031\n\t114077\t103991\t220181\t199657\nInterest expense\t\t\t\t\nDeposits\t20444\t13732\t38659\t25764\nFHLB advances\t5794\t4131\t10250\t6811\nRepurchase agreements and other borrowings\t2285\t2199\t4554\t4540\n\t28523\t20062\t53463\t37115\nNet interest income\t85554\t83929\t166718\t162542\nProvision for credit losses\t16100\t17478\t25900\t33141\nNet interest income after provision for credit losses\t69454\t66451\t140818\t129401\nNon-interest income\t\t\t\t\nService charges and other fees\t9882\t8844\t17137\t16771\nNet gain on sale of mortgage loans held for sale\t2879\t1668\t4404\t3477\nBank-owned life insurance income\t489\t479\t971\t926\nNet gain (loss) on securities transactions\t0\t0\t6\t(128)\nGain (loss) on sale and disposition of assets\t18\t(153)\t4\t2060\nOther\t(1036)\t14\t(396)\t644\n\t12232\t10852\t22126\t23750\nNon-interest expense\t\t\t\t\nSalaries and employee benefits\t26586\t24313\t53457\t51389\nMerger costs\t2362\t0\t2362\t0\nAdvertising\t982\t1358\t1885\t2246\nOccupancy and equipment\t3950\t3980\t7849\t7840\nOutside professional services\t1674\t1382\t2959\t2632\nRegulatory assessments\t831\t731\t1449\t1885\nData processing\t5739\t5145\t11672\t9848\nOffice operations\t2568\t2224\t4903\t4524\nOther\t2834\t3058\t5297\t5706\n\t47526\t42191\t91833\t86070\nIncome before income tax expense\t34160\t35112\t71111\t67081\nIncome tax expense\t7177\t7275\t15048\t13482\nNet income\t26983\t27837\t56063\t53599\nEarnings per share:\t\t\t\t\nBasic\t0.57\t0.59\t1.18\t1.14\nDiluted\t0.56\t0.58\t1.17\t1.12\nDividends declared per share\t0.25\t0.16\t0.50\t0.32\nSee accompanying notes to consolidated financial statements.\t\t\t\t\n", "q10k_tbl_4": "\tThree Months Ended\t\tSix Months Ended\t\n\tJune 30\t\tJune 30\t\n\t2019\t2018\t2019\t2018\nNet income\t26983\t27837\t56063\t53599\nChange in unrealized gains (losses) on securities available for sale\t4169\t(1532)\t9522\t(6377)\nReclassification of amount realized through securities transactions\t0\t0\t(6)\t128\nTax effect\t(876)\t322\t(1998)\t1310\nReclassification of income tax effects of the Tax Cuts and Jobs Act\t0\t0\t0\t(741)\nOther comprehensive income (loss) net of tax\t3293\t(1210)\t7518\t(5680)\nComprehensive income\t30276\t26627\t63581\t47919\nSee accompanying notes to consolidated financial statements.\t\t\t\t\n", "q10k_tbl_5": "\tCommon Stock\tAdditional Paid-In Capital\tRetained Earnings\tAccumulated Other Comprehensive Income (Loss) Net\tUnearned ESOP Shares\tTotal Shareholders' Equity\nFor the six months ended June 30 2019\t\t\t\t\t\t\nBalance at January 1 2019\t485\t619983\t491948\t(6658)\t(11391)\t1094367\nNet income\t0\t0\t29080\t0\t0\t29080\nOther comprehensive income net of tax\t0\t0\t0\t4225\t0\t4225\nDividends declared ($0.25 per share)\t0\t0\t(12141)\t0\t0\t(12141)\nESOP shares earned (13238 shares)\t0\t385\t0\t0\t132\t517\nShare-based compensation expense\t0\t2550\t0\t0\t0\t2550\nActivity in employee stock plans (198809 shares)\t2\t2487\t0\t0\t0\t2489\nBalance at March 31 2019\t487\t625405\t508887\t(2433)\t(11259)\t1121087\nNet income\t0\t0\t26983\t0\t0\t26983\nOther comprehensive income net of tax\t0\t0\t0\t3293\t0\t3293\nDividends declared ($0.25 per share)\t0\t0\t(12177)\t0\t0\t(12177)\nESOP shares earned (13238 shares)\t0\t387\t0\t0\t133\t520\nShare-based compensation expense\t0\t2015\t0\t0\t0\t2015\nActivity in employee stock plans (129168 shares)\t1\t923\t0\t0\t0\t924\nBalance at June 30 2019\t488\t628730\t523693\t860\t(11126)\t1142645\nFor the six months ended June 30 2018\t\t\t\t\t\t\nBalance at January 1 2018\t481\t603884\t370858\t(3429)\t(11920)\t959874\nNet income\t0\t0\t25762\t0\t0\t25762\nOther comprehensive (loss) net of tax\t0\t0\t0\t(4470)\t0\t(4470)\nReclassification of income tax effects of the Tax Cuts and Jobs Act\t0\t0\t741\t0\t0\t741\nDividends declared ($0.16 per share)\t0\t0\t(7708)\t0\t0\t(7708)\nESOP shares earned (13238 shares)\t0\t447\t0\t0\t131\t578\nShare-based compensation expense\t0\t2055\t0\t0\t0\t2055\nActivity in employee stock plans (147576 shares)\t2\t2660\t0\t0\t0\t2662\nBalance at March 31 2018\t483\t609046\t389653\t(7899)\t(11789)\t979494\nNet income\t0\t0\t27837\t0\t0\t27837\nOther comprehensive (loss) net of tax\t0\t0\t0\t(1210)\t0\t(1210)\nDividends declared ($.16 per share)\t0\t0\t(7725)\t0\t0\t(7725)\nESOP shares earned (13238 shares)\t0\t427\t0\t0\t133\t560\nShare-based compensation expense\t0\t1398\t0\t0\t0\t1398\nActivity in employee stock plans (46254 shares)\t0\t1096\t0\t0\t0\t1096\nBalance at June 30 2018\t483\t611967\t409765\t(9109)\t(11656)\t1001450\n", "q10k_tbl_6": "\tSix Months Ended June 30\t\n\t2019\t2018\nCash flows from operating activities\t\t\nNet income\t56063\t53599\nAdjustments to reconcile net income to net cash provided by operating activities:\t\t\nProvision for credit losses\t25900\t33141\nDepreciation and amortization\t5678\t3401\nDeferred tax benefit\t(7280)\t2226\nPremium amortization and accretion of securities net\t1912\t1986\nAccretion related to acquired loans\t(491)\t(1147)\nNet (gain) loss on securities transactions\t(6)\t128\nESOP compensation expense\t1037\t1138\nShare-based compensation expense\t4565\t3453\nExcess tax benefit on vesting of stock awards\t140\t681\nNet gain on loans held for sale\t(4404)\t(3477)\nLoans originated or purchased for sale\t(108201)\t(100470)\nProceeds from sale of loans held for sale\t89227\t87106\nFHLB stock dividends\t(588)\t(391)\nBank-owned life insurance income\t(971)\t(926)\n(Gain) loss on sale and disposition of repossessed assets premises and equipment\t(31)\t190\nNet change in deferred loan fees/costs\t(1354)\t(2744)\nNet change in accrued interest receivable\t(5421)\t(1093)\nNet change in other assets\t10972\t(3246)\nNet change in other liabilities\t31516\t28904\nNet cash provided by operating activities\t98263\t102459\nCash flows from investing activities\t\t\nAvailable-for-sale securities:\t\t\nMaturities prepayments and calls\t343727\t1087449\nPurchases\t(347545)\t(1121303)\nProceeds from sale of AFS securities\t23886\t0\nHeld-to-maturity securities:\t\t\nMaturities prepayments and calls\t17751\t23236\nPurchases\t0\t(5388)\nOriginations of Warehouse Purchase Program loans\t(10460194)\t(10980262)\nProceeds from pay-offs of Warehouse Purchase Program loans\t9877914\t11009979\nNet change in loans held for investment excluding Warehouse Purchase Program loans\t(290389)\t(227028)\nPurchase of FHLB and Federal Reserve Bank stock and other\t(22381)\t(880)\nPurchases of premises and equipment\t(2128)\t(4454)\nProceeds from sale of assets\t1146\t1225\nNet cash (used in) investing activities\t(858213)\t(217426)\n", "q10k_tbl_7": "CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Dollars in thousands)\t\t\n\tSix Months Ended June 30\t\n\t2019\t2018\nCash flows from financing activities\t\t\nNet change in deposits\t214075\t113665\nProceeds from FHLB advances\t1380000\t1055000\nRepayments on FHLB advances\t(820644)\t(1032222)\nProceeds from (repayments of) borrowings\t2074\t(43346)\nPayment of dividends\t(24318)\t(15433)\nActivity in employee stock plans\t3413\t3758\nNet cash provided by financing activities\t754600\t81422\nNet change in cash and cash equivalents\t(5350)\t(33545)\nBeginning cash and cash equivalents\t269193\t293456\nEnding cash and cash equivalents\t263843\t259911\nSupplemental noncash disclosures:\t\t\nTransfers from loans to other real estate owned\t286\t25\nLeased assets obtained in exchange for new operating lease liabilities\t36503\t0\nSee accompanying notes to consolidated financial statements.\t\t\n", "q10k_tbl_8": "\t\tThree Months Ended June 30\t\tSix Months Ended June 30\t\n\t\t2019\t2018\t2019\t2018\nCard services income\t(a)\t3583\t3295\t6595\t6353\nService charges on deposits\t(b)\t2058\t1957\t4030\t3730\nTitle income\t(c)\t1562\t1196\t2348\t2253\nGains (losses) on the sale of other real estate owned\t(d)\t45\t9\t40\t(31)\n", "q10k_tbl_9": "\tThree Months Ended June 30\t\tSix Months Ended June 30\t\n\t2019\t2018\t2019\t2018\nBasic earnings per share:\t\t\t\t\nNumerator:\t\t\t\t\nNet income\t26983\t27837\t56063\t53599\nDistributed and undistributed earnings to participating securities\t(146)\t(67)\t(273)\t(143)\nIncome available to common shareholders\t26837\t27770\t55790\t53456\nDenominator:\t\t\t\t\nWeighted average common shares outstanding\t48762922\t48287755\t48674727\t48242925\nLess: Average unallocated ESOP shares\t(1121344)\t(1174297)\t(1127926)\t(1180879)\nAverage unvested restricted stock awards\t(258264)\t(113053)\t(231625)\t(125323)\nAverage shares for basic earnings per share\t47383314\t47000405\t47315176\t46936723\nBasic earnings per common share\t0.57\t0.59\t1.18\t1.14\nDiluted earnings per share:\t\t\t\t\nNumerator:\t\t\t\t\nIncome available to common shareholders\t26837\t27770\t55790\t53456\nDenominator:\t\t\t\t\nAverage shares for basic earnings per share\t47383314\t47000405\t47315176\t46936723\nDilutive effect of share-based compensation plan\t540077\t617752\t561917\t651373\nAverage shares for diluted earnings per share\t47923391\t47618157\t47877093\t47588096\nDiluted earnings per common share\t0.56\t0.58\t1.17\t1.12\nShare awards excluded in the computation of diluted earnings per share because the exercise price was greater than the common stock average market price and were therefore antidilutive\t254171\t479531\t348630\t553390\n", "q10k_tbl_10": "June 30 2019\tAmortized Cost\tGross Unrealized Gains\tGross Unrealized Losses\tFair Value\nAgency residential mortgage-backed securities 1\t135233\t344\t970\t134607\nAgency commercial mortgage-backed securities 1\t8187\t0\t34\t8153\nAgency residential collateralized mortgage obligations 1\t292946\t2387\t961\t294372\nMunicipal bonds\t22294\t330\t7\t22617\nTotal securities\t458660\t3061\t1972\t459749\nDecember 31 2018\t\t\t\t\nAgency residential mortgage-backed securities 1\t153671\t283\t4083\t149871\nAgency commercial mortgage-backed securities 1\t9063\t0\t143\t8920\nAgency residential collateralized mortgage obligations 1\t284886\t603\t4850\t280639\nUS government and agency securities\t1500\t43\t0\t1543\nMunicipal bonds\t31053\t87\t367\t30773\nTotal securities\t480173\t1016\t9443\t471746\n", "q10k_tbl_11": "June 30 2019\tAmortized Cost\tGross Unrealized Gains\tGross Unrealized Losses\tFair Value\nAgency residential mortgage-backed securities 1\t47615\t613\t230\t47998\nAgency commercial mortgage-backed securities 1\t21612\t343\t0\t21955\nAgency residential collateralized mortgage obligations 1\t13890\t96\t31\t13955\nMunicipal bonds\t44719\t300\t63\t44956\nTotal securities\t127836\t1352\t324\t128864\nDecember 31 2018\t\t\t\t\nAgency residential mortgage-backed securities 1\t53377\t266\t1151\t52492\nAgency commercial mortgage-backed securities 1\t21872\t60\t167\t21765\nAgency residential collateralized mortgage obligations 1\t17645\t25\t124\t17546\nMunicipal bonds\t53152\t305\t469\t52988\nTotal securities\t146046\t656\t1911\t144791\n", "q10k_tbl_12": "\tHTM\t\tAFS\n\tAmortized Cost\tFair Value\tFair Value\nDue in one year or less\t967\t972\t1800\nDue after one to five years\t16619\t16725\t7129\nDue after five to ten years\t26241\t26343\t11455\nDue after ten years\t892\t916\t2233\nAgency residential mortgage-backed securities\t47615\t47998\t134607\nAgency commercial mortgage-backed securities\t21612\t21955\t8153\nAgency residential collateralized mortgage obligations\t13890\t13955\t294372\nTotal\t127836\t128864\t459749\n", "q10k_tbl_13": "\tThree Months Ended June 30\t\tSix Months Ended June 30\t\n\t2019\t2018\t2019\t2018\nProceeds\t0\t0\t23886\t0\nGross gains\t0\t0\t161\t0\nGross losses\t0\t0\t155\t0\nTax expense of securities gains/losses\t0\t0\t1\t0\n", "q10k_tbl_14": "AFS\tLess than 12 Months\t\t12 Months or More\t\tTotal\t\nJune 30 2019\tFair Value\tUnrealized Loss\tFair Value\tUnrealized Loss\tFair Value\tUnrealized Loss\nAgency residential mortgage-backed securities 1\t0\t0\t100776\t970\t100776\t970\nAgency commercial mortgage-backed securities 1\t0\t0\t8152\t34\t8152\t34\nAgency residential collateralized mortgage obligations 1\t15025\t35\t104469\t926\t119494\t961\nMunicipal bonds\t1033\t1\t1322\t6\t2355\t7\nTotal temporarily impaired\t16058\t36\t214719\t1936\t230777\t1972\nDecember 31 2018\t\t\t\t\t\t\nAgency residential mortgage-backed securities 1\t4770\t27\t123413\t4056\t128183\t4083\nAgency commercial mortgage-backed securities 1\t0\t0\t8921\t143\t8921\t143\nAgency residential collateralized mortgage obligations 1\t32668\t195\t153131\t4655\t185799\t4850\nMunicipal bonds\t6326\t59\t16260\t308\t22586\t367\nTotal temporarily impaired\t43764\t281\t301725\t9162\t345489\t9443\n", "q10k_tbl_15": "HTM\tLess than 12 Months\t\t12 Months or More\t\tTotal\t\nJune 30 2019\tFair Value\tUnrealized Loss\tFair Value\tUnrealized Loss\tFair Value\tUnrealized Loss\nAgency residential mortgage-backed securities 1\t0\t0\t22801\t230\t22801\t230\nAgency residential collateralized mortgage obligations 1\t0\t0\t3799\t31\t3799\t31\nMunicipal bonds\t1435\t9\t8696\t54\t10131\t63\nTotal temporarily impaired\t1435\t9\t35296\t315\t36731\t324\nDecember 31 2018\t\t\t\t\t\t\nAgency residential mortgage-backed securities 1\t5002\t15\t30180\t1136\t35182\t1151\nAgency commercial mortgage-backed securities 1\t6465\t41\t6964\t126\t13429\t167\nAgency residential collateralized mortgage obligations 1\t3994\t11\t6213\t113\t10207\t124\nMunicipal bonds\t7131\t17\t20244\t452\t27375\t469\nTotal temporarily impaired\t22592\t84\t63601\t1827\t86193\t1911\n", "q10k_tbl_16": "\tJune 30 2019\tDecember 31 2018\nLoans held for sale at fair value\t46571\t23193\nLoans held for investment:\t\t\nCommercial real estate\t3180582\t3026754\nCommercial and industrial\t2102917\t2057791\nConstruction and land\t288491\t270629\nConsumer real estate\t1460417\t1390378\nOther consumer\t47668\t45171\nGross loans held for investment excluding Warehouse Purchase Program\t7080075\t6790723\nNet of:\t\t\nDeferred costs (fees) and discounts net\t11751\t10397\nAllowance for loan losses\t(92219)\t(67428)\nNet loans held for investment excluding Warehouse Purchase Program\t6999607\t6733692\nWarehouse Purchase Program\t1542684\t960404\nTotal loans held for investment\t8542291\t7694096\n", "q10k_tbl_17": "For the three months ended June 30 2019\tCommercial Real Estate\tCommercial and Industrial\tConstruction and Land\tConsumer Real Estate\tOther Consumer\tTotal\nAllowance for loan losses:\t\t\t\t\t\t\nBeginning balance\t21525\t44721\t3837\t6072\t1375\t77530\nCharge-offs\t0\t(1348)\t0\t0\t(276)\t(1624)\nRecoveries\t0\t112\t0\t4\t74\t190\nProvision expense (benefit)\t3279\t12119\t713\t(170)\t182\t16123\nEnding balance\t24804\t55604\t4550\t5906\t1355\t92219\nFor the six months ended June 30 2019\t\t\t\t\t\t\nAllowance for loan losses:\t\t\t\t\t\t\nBeginning balance\t20045\t36398\t3910\t5843\t1232\t67428\nCharge-offs\t0\t(1440)\t0\t(23)\t(520)\t(1983)\nRecoveries\t0\t667\t0\t24\t121\t812\nProvision expense\t4759\t19979\t640\t62\t522\t25962\nEnding balance\t24804\t55604\t4550\t5906\t1355\t92219\nAllowance ending balance:\t\t\t\t\t\t\nIndividually evaluated for impairment\t2092\t29116\t0\t72\t83\t31363\nCollectively evaluated for impairment\t22712\t26488\t4550\t5834\t1272\t60856\nLoans:\t\t\t\t\t\t\nIndividually evaluated for impairment\t7292\t48366\t228\t3403\t5\t59294\nCollectively evaluated for impairment\t3173069\t2054472\t288263\t1456850\t47488\t7020142\nPCI loans\t221\t79\t0\t164\t175\t639\nEnding balance\t3180582\t2102917\t288491\t1460417\t47668\t7080075\n", "q10k_tbl_18": "For the three months ended June 30 2018\tCommercial Real Estate\tCommercial and Industrial\tConstruction and Land\tConsumer Real Estate\tOther Consumer\tTotal\nAllowance for loan losses:\t\t\t\t\t\t\nBeginning balance\t21538\t42764\t3938\t5029\t1239\t74508\nCharge-offs\t(236)\t(27289)\t0\t0\t(212)\t(27737)\nRecoveries\t0\t28\t0\t9\t37\t74\nProvision expense (benefit)\t374\t17369\t(264)\t(41)\t162\t17600\nEnding balance\t21676\t32872\t3674\t4997\t1226\t64445\nFor the six months ended June 30 2018\t\t\t\t\t\t\nAllowance for loan losses:\t\t\t\t\t\t\nBeginning balance\t21587\t39005\t4644\t4838\t1227\t71301\nCharge-offs\t(239)\t(39525)\t0\t0\t(500)\t(40264)\nRecoveries\t0\t50\t0\t20\t103\t173\nProvision expense (benefit)\t328\t33342\t(970)\t139\t396\t33235\nEnding balance\t21676\t32872\t3674\t4997\t1226\t64445\nAllowance ending balance:\t\t\t\t\t\t\nIndividually evaluated for impairment\t69\t1749\t0\t225\t28\t2071\nCollectively evaluated for impairment\t21607\t31123\t3674\t4772\t1198\t62374\nLoans:\t\t\t\t\t\t\nIndividually evaluated for impairment\t3656\t10222\t0\t2784\t16\t16678\nCollectively evaluated for impairment\t3015188\t2041619\t265745\t1284168\t44402\t6651122\nPCI loans\t2304\t114\t0\t751\t170\t3339\nEnding balance\t3021148\t2051955\t265745\t1287703\t44588\t6671139\n", "q10k_tbl_19": "\tThree Months Ended June 30\t\tSix Months Ended June 30\t\n\t2019\t2018\t2019\t2018\nBeginning balance\t690\t957\t729\t929\nCharge-offs on lending-related commitments\t0\t0\t0\t0\nProvision (benefit) for credit losses on lending-related commitments\t(23)\t(122)\t(62)\t(94)\nEnding balance\t667\t835\t667\t835\n", "q10k_tbl_20": "June 30 2019\tUnpaid Contractual Principal Balance\tRecorded Investment With No Allowance\tRecorded Investment With Allowance\tTotal Recorded Investment\tRelated Allowance\nCommercial real estate\t7312\t628\t6664\t7292\t2082\nCommercial and industrial\t48821\t837\t47529\t48366\t29116\nConstruction and land\t228\t228\t0\t228\t0\nConsumer real estate\t3905\t3403\t0\t3403\t0\nOther consumer\t8\t1\t4\t5\t2\nTotal\t60274\t5097\t54197\t59294\t31200\nDecember 31 2018\t\t\t\t\t\nCommercial real estate\t177\t159\t0\t159\t0\nCommercial and industrial\t17124\t1844\t14864\t16708\t4109\nConsumer real estate\t2865\t2370\t5\t2375\t4\nOther consumer\t35\t0\t3\t3\t3\nTotal\t20201\t4373\t14872\t19245\t4116\n", "q10k_tbl_21": "\tThree Months Ended June 30\t\t\t\n\t2019\t\t2018\t\n\tAverage Recorded Investment\tInterest Income Recognized\tAverage Recorded Investment\tInterest Income Recognized\nCommercial real estate\t7057\t2\t6025\t2\nCommercial and industrial\t48921\t0\t32942\t0\nConstruction and land\t114\t0\t0\t0\nConsumer real estate\t2980\t10\t2846\t8\nOther consumer\t5\t0\t19\t1\nTotal\t59077\t12\t41832\t11\n\tSix Months Ended June 30\t\t\t\n\t2019\t\t2018\t\nCommercial real estate\t4100\t4\t5124\t4\nCommercial and industrial\t34947\t0\t49213\t0\nConstruction and land\t65\t0\t0\t0\nConsumer real estate\t2760\t20\t2897\t16\nOther consumer\t5\t0\t25\t2\nTotal\t41877\t24\t57259\t22\n", "q10k_tbl_22": "\tJune 30 2019\tDecember 31 2018\nCommercial real estate\t7293\t159\nCommercial and industrial\t48367\t16710\nConstruction and land\t228\t0\nConsumer real estate\t6144\t5506\nOther consumer\t24\t46\nTotal\t62056\t22421\n", "q10k_tbl_23": "\tJune 30 2019\tDecember 31 2018\nNonaccrual TDRs(1)\t8938\t1160\nPerforming TDRs (2)\t837\t926\nTotal\t9775\t2086\nOutstanding commitments to lend additional funds to borrowers with TDR loans\t0\t0\n", "q10k_tbl_24": "\tThree Months Ended June 30 2019\t\tSix Months Ended June 30 2019\t\t\n\tCombination of Rate Reduction and Principal Deferral\tTotal\tPrincipal Deferrals\tCombination of Rate Reduction and Principal Deferral\tTotal\nCommercial and industrial\t0\t0\t7401\t0\t7401\nConsumer real estate\t600\t600\t0\t600\t600\nOther consumer\t0\t0\t3\t0\t3\nTotal\t600\t600\t7404\t600\t8004\n\tThree Months Ended June 30 2018\t\tSix Months Ended June 30 2018\t\t\nCommercial and industrial\t0\t0\t83\t0\t83\nTotal\t0\t0\t83\t0\t83\n", "q10k_tbl_25": "\tJune 30 2019\tDecember 31 2018\nCarrying amount 1\t476\t939\nOutstanding balance\t585\t1170\n", "q10k_tbl_26": "\tThree Months Ended June 30\t\tSix Months Ended June 30\t\n\t2019\t2018\t2019\t2018\nBeginning balance\t609\t2167\t624\t2279\nReclassifications (to) from nonaccretable\t(467)\t10\t(432)\t61\nDisposals\t287\t17\t287\t(47)\nAccretion\t(37)\t(96)\t(87)\t(195)\nBalance at end of period\t392\t2098\t392\t2098\n", "q10k_tbl_27": "June 30 2019\t30-59 Days Past Due\t60-89 Days Past Due\t90 Days and Greater Past Due\tTotal Loans Past Due\tCurrent Loans\tTotal Loans\nCommercial real estate\t2746\t5\t7264\t10015\t3170567\t3180582\nCommercial and industrial\t4519\t1340\t26450\t32309\t2070608\t2102917\nConstruction and land\t1345\t0\t228\t1573\t286918\t288491\nConsumer real estate\t1912\t6073\t1836\t9821\t1450596\t1460417\nOther consumer\t256\t61\t0\t317\t47351\t47668\nTotal\t10778\t7479\t35778\t54035\t7026040\t7080075\nDecember 31 2018\t\t\t\t\t\t\nCommercial real estate\t6\t0\t0\t6\t3026748\t3026754\nCommercial and industrial\t289\t0\t217\t506\t2057285\t2057791\nConstruction and land\t557\t0\t0\t557\t270072\t270629\nConsumer real estate\t18885\t4241\t1632\t24758\t1365620\t1390378\nOther consumer\t271\t15\t29\t315\t44856\t45171\nTotal\t20008\t4256\t1878\t26142\t6764581\t6790723\n", "q10k_tbl_28": "June 30 2019\tCommercial Real Estate\tCommercial and Industrial\tConstruction and Land\tConsumer Real Estate\nGrade: 1\t\t\t\t\nPass\t3153794\t1928987\t288263\t1449095\nSpecial Mention\t18074\t53919\t0\t2668\nSubstandard\t8714\t120010\t228\t8333\nDoubtful\t0\t1\t0\t321\nTotal\t3180582\t2102917\t288491\t1460417\nDecember 31 2018\t\t\t\t\nGrade: 1\t\t\t\t\nPass\t3007810\t1935786\t270629\t1382388\nSpecial Mention\t17322\t56016\t0\t1218\nSubstandard\t1622\t65987\t0\t6429\nDoubtful\t0\t2\t0\t343\nTotal\t3026754\t2057791\t270629\t1390378\n", "q10k_tbl_29": "\tJune 30 2019\tDecember 31 2018\nPerforming\t47644\t45125\nNon-performing\t24\t46\nTotal\t47668\t45171\n", "q10k_tbl_30": "\tFair Value Measurements Using Level 2\t\n\tJune 30 2019\tDecember 31 2018\nAssets:\t\t\nAgency residential mortgage-backed securities\t134607\t149871\nAgency commercial mortgage-backed securities\t8153\t8920\nAgency residential collateralized mortgage obligations\t294372\t280639\nUS government and agency securities\t0\t1543\nMunicipal bonds\t22617\t30773\nTotal securities available for sale\t459749\t471746\nLoans held for sale 1\t46571\t23193\nDerivative financial instruments:\t\t\nInterest rate lock commitments\t968\t459\nForward mortgage-backed securities trades\t19\t0\nLoan customer counterparty\t4658\t578\nFinancial institution counterparty\t146\t1118\nLiabilities:\t\t\nDerivative financial instruments:\t\t\nInterest rate lock commitments\t0\t0\nForward mortgage-backed securities trades\t154\t163\nLoan customer counterparty\t146\t1118\nFinancial institution counterparty\t4658\t578\n", "q10k_tbl_31": "\tFair Value Measurements Using Level 3\t\n\tJune 30 2019\tDecember 31 2018\nAssets:\t\t\nImpaired loans\t22997\t10756\nForeclosed assets:\t\t\nConsumer real estate\t0\t720\nOther\t584\t613\n", "q10k_tbl_32": "\t\tFair Value Measurement Using\t\t\nJune 30 2019\tCarrying Amount\tLevel 1\tLevel 2\tLevel 3\nFinancial assets\t\t\t\t\nCash and cash equivalents\t263843\t263843\t0\t0\nSecurities held to maturity\t127836\t0\t128864\t0\nLoans held for investment net\t6999607\t0\t0\t6959130\nLoans held for investment - Warehouse Purchase Program\t1542684\t0\t0\t1542684\nFHLB and other restricted securities at cost\t79195\t0\t79195\t0\nAccrued interest receivable\t32525\t32525\t0\t0\nFinancial liabilities\t\t\t\t\nDeposits\t7055790\t0\t0\t7059481\nFHLB advances\t1384765\t0\t0\t1384902\nRepurchase agreements\t52414\t0\t0\t47117\nSubordinated debt\t135257\t0\t0\t136767\nAccrued interest payable\t4848\t4848\t0\t0\nDecember 31 2018\t\t\t\t\nFinancial assets\t\t\t\t\nCash and cash equivalents\t269193\t269193\t0\t0\nSecurities held to maturity\t146046\t0\t144791\t0\nLoans held for investment net\t6733692\t0\t0\t6664703\nLoans held for investment - Warehouse Purchase Program\t960404\t0\t0\t960404\nFHLB and other restricted securities at cost\t56226\t0\t56226\t0\nAccrued interest receivable\t27104\t27104\t0\t0\nFinancial liabilities\t\t\t\t\nDeposits 1\t6841715\t0\t0\t6834351\nFHLB advances\t825409\t0\t0\t825496\nRepurchase agreement\t50340\t0\t0\t44214\nSubordinated debt\t135012\t0\t0\t138524\nAccrued interest payable\t4428\t4428\t0\t0\n", "q10k_tbl_33": "\tJune 30 2019\t\t\tDecember 31 2018\t\t\n\tOutstanding Notional Balance\tAsset Derivative Fair Value\tLiability Derivative Fair Value\tOutstanding Notional Balance\tAsset Derivative Fair Value\tLiability Derivative Fair Value\nIRLCs\t31993\t968\t0\t12287\t459\t0\nForward mortgage-backed securities trades\t57500\t19\t154\t24133\t0\t163\nCommercial loan interest rate swaps and caps:\t\t\t\t\t\t\nLoan customer counterparty\t161512\t4658\t146\t64130\t578\t1118\nFinancial institution counterparty\t161512\t146\t4658\t64130\t1118\t578\n", "q10k_tbl_34": "\tWeighted-Average Interest Rate\t\t\t\nJune 30 2019\t\tDecember 31 2018\t\nReceived\tPaid\tReceived\tPaid\nLoan customer counterparty\t4.08%\t4.31%\t4.21%\t4.29%\n", "q10k_tbl_35": "Derivatives not designated as hedging instruments\tThree Months Ended June 30\t\tSix Months Ended June 30\t\n2019\t\t2018\t2019\t2018\nIRLCs\t269\t(10)\t509\t77\nForward mortgage-backed securities trades\t(543)\t52\t(880)\t451\n", "q10k_tbl_36": "\tThree Months Ended June 30\t\tSix Months Ended June 30\t\n\t2019\t2018\t2019\t2018\nRestricted stock\t1291\t578\t3170\t1642\nStock options\t724\t820\t1395\t1811\nIncome tax benefit\t423\t293\t959\t725\n", "q10k_tbl_37": "\tTime-Vested Restricted Shares Outstanding\t\tPerformance-Based Restricted Shares Outstanding\t\t\tStock Options Outstanding\t\n\tNumber of Shares\tWeighted-Average Grant Date Fair Value per Share 1\tNumber of Shares\t\tWeighted-Average Grant Date Fair Value per Share 2\tNumber of Shares\tWeighted- Average Exercise Price per Share\nBeginning balance\t191803\t38.90\t78958\t\t32.09\t1832887\t26.97\nGranted\t135985\t40.46\t28600\t3\t40.71\t0\t0\nAdditional performance-based shares issued at vesting\t0\t0\t20100\t4\t35.13\t0\t0\nVested/exercised)\t(17949\t42.40\t(60300)\t\t35.13\t(133992)\t25.47\nForfeited/expired)\t(2300\t42.74\t0\t\t0\t(36917)\t32.01\nEnding balance\t307539\t39.36\t67358\t\t40.71\t1661978\t26.97\n", "q10k_tbl_38": "Balance sheet:\t\nOperating lease asset classified as premises and equipment\t34441\nOperating lease liability classified as other liabilities\t38099\nIncome statement:\t\nOperating lease cost classified as occupancy and equipment expense\t2981\nWeighted average lease term in years\t9.36\nWeighted average discount rate1\t4.88%\nOperating cash flows\t3027\n", "q10k_tbl_39": "\tBalance\nJuly 1 2019 to June 30 2020\t6026\nJuly 1 2020 to June 30 2021\t5749\nJuly 1 2021 to June 30 2022\t5392\nJuly 1 2022 to June 30 2023\t4949\nJuly 1 2023 to June 30 2024\t4740\nThereafter\t21062\nTotal lease payments\t47918\nLess: Interest\t(9819)\nPresent value of lease liabilities\t38099\n", "q10k_tbl_40": "\tJune 30 2019\tDecember 31 2018\nNet deferred tax liabilities\t4488\t9769\nEstimated annual effective tax rate\t21%\t\n", "q10k_tbl_41": "\tJune 30 2019\tDecember 31 2018\nUnused commitments to extend credit\t1785281\t1850351\nUnused capacity on Warehouse Purchase Program loans\t620316\t967096\nStandby letters of credit\t61853\t46383\nTotal unused commitments/capacity\t2467450\t2863830\n", "q10k_tbl_42": "\tJune 30 2019\tDecember 31 2018\tDollar Change\tPercent Change\n\t(Dollars in thousands)\t\t\t\nCommercial real estate\t3180582\t3026754\t153828\t5.1%\nCommercial and industrial\t2102917\t2057791\t45126\t2.2\nConstruction and land\t288491\t270629\t17862\t6.6\nConsumer real estate\t1460417\t1390378\t70039\t5.0\nOther consumer\t47668\t45171\t2497\t5.5\nGross loans held for investment excluding Warehouse Purchase Program loans\t7080075\t6790723\t289352\t4.3\nWarehouse Purchase Program\t1542684\t960404\t582280\t60.6\nGross loans held for investment\t8622759\t7751127\t871632\t11.2\nLoans held for sale\t46571\t23193\t23378\t100.8\nGross loans\t8669330\t7774320\t895010\t11.5%\n", "q10k_tbl_43": "\tJune 30 2019\tDecember 31 2018\n\t(Dollars in thousands)\t\nDoubtful\t322\t345\nSubstandard\t137487\t74263\nTotal classified loans\t137809\t74608\nForeclosed assets\t584\t1333\nTotal classified assets\t138393\t75941\n", "q10k_tbl_44": "\tJune 30 2019\tDecember 31 2018\tDollar Change\tPercent Change\n\t(Dollars in thousands)\t\t\t\nNon-interest-bearing demand\t1847229\t1773762\t73467\t4.1%\nInterest-bearing demand\t855026\t826755\t28271\t3.4\nSavings and money market\t2548966\t2455787\t93179\t3.8\nTime\t1804569\t1785411\t19158\t1.1\nTotal deposits\t7055790\t6841715\t214075\t3.1%\n", "q10k_tbl_45": "\tBalance\tWeighted Average Rate\n\t(Dollars in thousands)\t\nLess than 90 days\t1380314\t2.40%\n90 days to less than one year\t1828\t5.48\nOne to three years\t1910\t5.51\nAfter three to five years\t329\t5.47\nAfter five years\t384\t5.44\nTotal\t1384765\t2.41%\n", "q10k_tbl_46": "\tJune 30 2019\tDecember 31 2018\tDollar Change\tPercent Change\n\t(Dollars in thousands)\t\t\t\nCommon stock\t488\t485\t3\t0.6%\nAdditional paid-in capital\t628730\t619983\t8747\t1.4\nRetained earnings\t523693\t491948\t31745\t6.5\nAccumulated other comprehensive loss net\t860\t(6658)\t7518\t(112.9)\nUnearned ESOP shares\t(11126)\t(11391)\t265\t(2.3)\nTotal shareholders' equity\t1142645\t1094367\t48278\t4.4%\n", "q10k_tbl_47": "\tThree Months Ended June 30\t\tDollar Change\tPercent Change\n\t2019\t2018\t\n\t(Dollars in thousands)\t\t\t\nInterest and dividend income\t\t\t\t\nLoans including fees\t108154\t98570\t9584\t9.7%\nSecurities\t3870\t3773\t97\t2.6\nInterest-bearing deposits in other financial institutions\t1370\t1097\t273\t24.9\nFHLB and FRB stock and other\t683\t551\t132\t24.0\n\t114077\t103991\t10086\t9.7%\n", "q10k_tbl_48": "\tThree Months Ended June 30\t\tDollar Change\tPercent Change\n\t2019\t2018\t\n\t(Dollars in thousands)\t\t\t\nInterest expense\t\t\t\t\nDeposits\t20444\t13732\t6712\t48.9%\nFHLB advances\t5794\t4131\t1663\t40.3\nRepurchase agreements and other borrowings\t2285\t2199\t86\t3.9\n\t28523\t20062\t8461\t42.2%\n", "q10k_tbl_49": "\tThree Months Ended June 30\t\tDollar Change\tPercent Change\n\t2019\t2018\t\n\t(Dollars in thousands)\t\t\t\nNon-interest income\t\t\t\t\nService charges and other fees\t9882\t8844\t1038\t11.7%\nNet gain on sale of mortgage loans held for sale\t2879\t1668\t1211\t72.6\nBank-owned life insurance income\t489\t479\t10\t2.1\nGain (loss) on sale and disposition of assets\t18\t(153)\t171\tN/M1\nOther\t(1036)\t14\t(1050)\tN/M1\n\t12232\t10852\t1380\t12.7%\n", "q10k_tbl_50": "\tThree Months Ended June 30\t\tDollar Change\tPercent Change\n\t2019\t2018\t\n\t(Dollars in thousands)\t\t\t\nNon-interest expense\t\t\t\t\nSalaries and employee benefits\t26586\t24313\t2273\t9.3%\nMerger costs\t2362\t0\t2362\t100.0\nAdvertising\t982\t1358\t(376)\t(27.7)\nOccupancy and equipment\t3950\t3980\t(30)\t(0.8)\nOutside professional services\t1674\t1382\t292\t21.1\nRegulatory assessments\t831\t731\t100\t13.7\nData processing\t5739\t5145\t594\t11.5\nOffice operations\t2568\t2224\t344\t15.5\nOther\t2834\t3058\t(224)\t(7.3)\n\t47526\t42191\t5335\t12.6%\n", "q10k_tbl_51": "\tSix Months Ended June 30\t\tDollar Change\tPercent Change\n\t2019\t2018\t\n\t(Dollars in thousands)\t\t\t\nInterest and dividend income\t\t\t\t\nLoans including fees\t208455\t189201\t19254\t10.2%\nSecurities\t7815\t7359\t456\t6.2\nInterest-bearing deposits in other financial institutions\t2647\t2066\t581\t28.1\nFHLB and FRB stock and other\t1264\t1031\t233\t22.6\n\t220181\t199657\t20524\t10.3%\n", "q10k_tbl_52": "\tSix Months Ended June 30\t\tDollar Change\tPercent Change\n\t2019\t2018\t\n\t(Dollars in thousands)\t\t\t\nInterest expense\t\t\t\t\nDeposits\t38659\t25764\t12895\t50.1%\nFHLB advances\t10250\t6811\t3439\t50.5\nRepurchase agreements and other borrowings\t4554\t4540\t14\t0.3\n\t53463\t37115\t16348\t44.0%\n", "q10k_tbl_53": "\tSix Months Ended June 30\t\tDollar Change\tPercent Change\n\t2019\t2018\t\n\t(Dollars in thousands)\t\t\t\nNon-interest income\t\t\t\t\nService charges and other fees\t17137\t16771\t366\t2.2%\nNet gain on sale of mortgage loans held for sale\t4404\t3477\t927\t26.7\nBank-owned life insurance income\t971\t926\t45\t4.9\nNet gain (loss) on securities transactions\t6\t(128)\t134\tN/M1\nGain on sale and disposition of assets\t4\t2060\t(2056)\t(99.8)\nOther\t(396)\t644\t(1040)\tN/M1\n\t22126\t23750\t(1624)\t(6.8)%\n", "q10k_tbl_54": "\tSix Months Ended June 30\t\tDollar Change\tPercent Change\n\t2019\t2018\t\n\t(Dollars in thousands)\t\t\t\nNon-interest expense\t\t\t\t\nSalaries and employee benefits\t53457\t51389\t2068\t4.0%\nMerger costs\t2362\t0\t2362\t100.0\nAdvertising\t1885\t2246\t(361)\t(16.1)\nOccupancy and equipment\t7849\t7840\t9\t0.1\nOutside professional services\t2959\t2632\t327\t12.4\nRegulatory assessments\t1449\t1885\t(436)\t(23.1)\nData processing\t11672\t9848\t1824\t18.5\nOffice operations\t4903\t4524\t379\t8.4\nOther\t5297\t5706\t(409)\t(7.2)\n\t91833\t86070\t5763\t6.7%\n", "q10k_tbl_55": "\t\tThree Months Ended June 30\t\t\t\t\t\n\t(Dollars in thousands)\t2019\t\t\t2018\t\t\nInterest-earning assets:\t\tAverage Outstanding Balance\tInterest Earned/Paid\tYield/ Rate\tAverage Outstanding Balance\tInterest Earned/Paid\tYield/ Rate\n\tCommercial real estate\t3119147\t40542\t5.21%\t3055139\t38762\t5.09%\n\tWarehouse Purchase Program\t1253262\t14927\t4.78\t1075262\t12137\t4.53\n\tCommercial and industrial\t2085820\t30218\t5.81\t2002490\t28489\t5.71\n\tConstruction and land\t286163\t4370\t6.13\t260560\t3478\t5.35\n\tConsumer real estate\t1434812\t17110\t4.77\t1265751\t14750\t4.66\n\tOther consumer\t47014\t663\t5.66\t43779\t626\t5.74\n\tLoans held for sale\t30572\t324\t4.25\t29378\t328\t4.46\n\tLess: deferred fees and allowance for loan loss\t(67408)\t0\t0\t(66746)\t0\t0\n\tLoans receivable 1\t8189382\t108154\t5.29\t7665613\t98570\t5.16\n\tAgency mortgage-backed securities\t218162\t1283\t2.35\t258420\t1434\t2.22\n\tAgency collateralized mortgage obligations\t317734\t2177\t2.74\t248150\t1640\t2.64\n\tInvestment securities\t68300\t410\t2.40\t101641\t699\t2.75\n\tFHLB and FRB stock and other restricted securities\t64752\t683\t4.22\t58972\t551\t3.73\n\tInterest-earning deposit accounts\t232862\t1370\t2.36\t233335\t1097\t1.89\nTotal interest-earning assets\t\t9091192\t114077\t5.03\t8566131\t103991\t4.87\nNon-interest-earning assets\t\t449173\t\t\t429905\t\t\nTotal assets\t\t9540365\t\t\t8996036\t\t\nInterest-bearing liabilities:\t\t\t\t\t\t\t\n\tInterest-bearing demand\t855948\t1519\t0.71\t954960\t2085\t0.88\n\tSavings and money market\t2581816\t7885\t1.22\t2578205\t5057\t0.79\n\tTime\t1885190\t11040\t2.35\t1632697\t6590\t1.62\n\tBorrowings\t1101559\t8079\t2.94\t1018945\t6330\t2.49\nTotal interest-bearing liabilities\t\t6424513\t28523\t1.78\t6184807\t20062\t1.30\nNon-interest-bearing demand\t\t1812042\t\t\t1694082\t\t\nNon-interest-bearing liabilities\t\t169809\t\t\t122573\t\t\nTotal liabilities\t\t8406364\t\t\t8001462\t\t\nTotal shareholders' equity\t\t1134001\t\t\t994574\t\t\nTotal liabilities and shareholders' equity\t\t9540365\t\t\t8996036\t\t\nNet interest income and margin\t\t\t85554\t3.77%\t\t83929\t3.93%\nNet interest income and margin (tax-equivalent basis) 2\t\t\t85640\t3.78%\t\t84064\t3.94%\nNet interest rate spread\t\t\t\t3.25%\t\t\t3.57%\nNet earning assets\t\t2666679\t\t\t2381324\t\t\nAverage interest-earning assets to average interest-bearing liabilities\t\t141.51%\t\t\t138.50%\t\t\n1\tCalculated net of deferred fees loan discounts loans in process and allowance for loan losses.\t\t\t\t\t\t\n2\tIn order to make pretax income and resultant yields on tax-exempt investments and loans comparable to those on taxable investments and loans a tax-equivalent adjustment (a non-GAAP measure) has been computed using a federal income tax rate of 21% for 2019 and 2018. Tax-exempt investments and loans had an average balance of $68.3 million and $89.7 million for the three months ended June 30 2019 and 2018 respectively.\t\t\t\t\t\t\n", "q10k_tbl_56": "\t\tSix Months Ended June 30\t\t\t\t\t\n\t(Dollars in thousands)\t2019\t\t\t2018\t\t\nInterest-earning assets:\t\tAverage Outstanding Balance\tInterest Earned/Paid\tYield/ Rate\tAverage Outstanding Balance\tInterest Earned/Paid\tYield/ Rate\n\tCommercial real estate\t3083813\t79462\t5.20%\t3024253\t76298\t5.09%\n\tWarehouse Purchase Program\t990128\t23698\t4.83\t1020595\t22209\t4.39\n\tCommercial and industrial\t2086932\t61009\t5.90\t1953773\t53242\t5.50\n\tConstruction and land\t281429\t8486\t6.08\t265701\t6935\t5.26\n\tConsumer real estate\t1419636\t33986\t4.79\t1246759\t28730\t4.61\n\tOther consumer\t46181\t1320\t5.76\t44332\t1247\t5.68\n\tLoans held for sale\t23001\t494\t4.30\t25206\t540\t4.28\n\tLess: deferred fees and allowance for loan loss\t(62708)\t0\t0\t(64718)\t0\t0\n\tLoans receivable 1\t7868412\t208455\t5.34\t7515901\t189201\t5.07\n\tAgency mortgage-backed securities\t223665\t2683\t2.40\t266402\t2936\t2.20\n\tAgency collateralized mortgage obligations\t310547\t4352\t2.80\t234728\t3032\t2.58\n\tInvestment securities\t75086\t780\t2.08\t99046\t1391\t2.81\n\tFHLB and FRB stock and other restricted securities\t60472\t1264\t4.18\t57735\t1031\t3.57\n\tInterest-earning deposit accounts\t225775\t2647\t2.36\t236617\t2066\t1.76\nTotal interest-earning assets\t\t8763957\t220181\t5.06\t8410429\t199657\t4.78\nNon-interest-earning assets\t\t453549\t\t\t429686\t\t\nTotal assets\t\t9217506\t\t\t8840115\t\t\nInterest-bearing liabilities:\t\t\t\t\t\t\t\n\tInterest-bearing demand\t828406\t3023\t0.74\t962935\t4018\t0.84\n\tSavings and money market\t2535084\t14813\t1.18\t2661237\t10101\t0.77\n\tTime\t1831309\t20823\t2.29\t1533553\t11645\t1.53\n\tBorrowings\t992416\t14804\t3.01\t948614\t11351\t2.41\nTotal interest-bearing liabilities\t\t6187215\t53463\t1.74\t6106339\t37115\t1.23\nNon-interest-bearing demand\t\t1750829\t\t\t1635761\t\t\nNon-interest-bearing liabilities\t\t158529\t\t\t114075\t\t\nTotal liabilities\t\t8096573\t\t\t7856175\t\t\nTotal shareholders' equity\t\t1120933\t\t\t983940\t\t\nTotal liabilities and shareholders' equity\t\t9217506\t\t\t8840115\t\t\nNet interest income and margin\t\t\t166718\t3.83%\t\t162542\t3.89%\nNet interest income and margin (tax-equivalent basis) 2\t\t\t166876\t3.84%\t\t162818\t3.90%\nNet interest rate spread\t\t\t\t3.32%\t\t\t3.55%\nNet earning assets\t\t2576742\t\t\t2304090\t\t\nAverage interest-earning assets to average interest-bearing liabilities\t\t141.65%\t\t\t137.73%\t\t\n1\tCalculated net of deferred fees loan discounts loans in process and allowance for loan losses.\t\t\t\t\t\t\n2\tIn order to make pretax income and resultant yields on tax-exempt investments and loans comparable to those on taxable investments and loans a tax-equivalent adjustment (a non-GAAP measure) has been computed using a federal income tax rate of 21% for 2019 and 2018. Tax-exempt investments and loans had an average balance of $73.0 million and $91.7 million for the six months ended June 30 2019 and 2018 respectively.\t\t\t\t\t\t\n", "q10k_tbl_57": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30\t\t\n\t2019 versus 2018\t\t\t2019 versus 2018\t\t\n\tIncrease (Decrease) Due to\t\tTotal Increase (Decrease)\tIncrease (Decrease) Due to\t\tTotal Increase (Decrease)\n\tVolume\tRate\tVolume\tRate\t\n\t(Dollars in thousands)\t\t\t\t\t\nInterest-earning assets:\t\t\t\t\t\t\nCommercial real estate\t821\t959\t1780\t1518\t1646\t3164\nWarehouse Purchase Program\t2092\t698\t2790\t(678)\t2167\t1489\nCommercial and industrial\t1201\t528\t1729\t3756\t4011\t7767\nConstruction and land\t362\t530\t892\t428\t1123\t1551\nConsumer real estate\t2009\t351\t2360\t4105\t1151\t5256\nOther consumer\t46\t(9)\t37\t53\t20\t73\nLoans held for sale\t13\t(17)\t(4)\t(47)\t1\t(46)\nLoans receivable\t6544\t3040\t9584\t9135\t10119\t19254\nAgency mortgage-backed securities\t(233)\t82\t(151)\t(498)\t245\t(253)\nAgency collateralized mortgage obligations\t475\t62\t537\t1045\t275\t1320\nInvestment securities\t(208)\t(81)\t(289)\t(294)\t(317)\t(611)\nFHLB and FRB stock and other restricted securities\t57\t75\t132\t51\t182\t233\nInterest-earning deposit accounts\t(2)\t275\t273\t(98)\t679\t581\nTotal interest-earning assets\t6633\t3453\t10086\t9341\t11183\t20524\nInterest-bearing liabilities:\t\t\t\t\t\t\nInterest-bearing demand\t(202)\t(364)\t(566)\t(524)\t(471)\t(995)\nSavings and money market\t7\t2821\t2828\t(500)\t5212\t4712\nTime\t1136\t3314\t4450\t2577\t6601\t9178\nBorrowings\t542\t1207\t1749\t545\t2908\t3453\nTotal interest-bearing liabilities\t1483\t6978\t8461\t2098\t14250\t16348\nNet interest income\t5150\t(3525)\t1625\t7243\t(3067)\t4176\n", "q10k_tbl_58": "\tJune 30 2019\t\t\t\t\n\tLess than One Year\tOne through Three Years\tFour through Five Years\tAfter Five Years\tTotal\n\t(Dollars in thousands)\t\t\t\t\nContractual obligations:\t\t\t\t\t\nDeposits without a stated maturity\t5251221\t0\t0\t0\t5251221\nCertificates of deposit\t1111229\t665382\t26630\t1328\t1804569\nFHLB advances 1\t1382142\t1910\t329\t384\t1384765\nRepurchase agreements\t52414\t0\t0\t0\t52414\nSubordinated debt 1\t0\t0\t0\t140464\t140464\nPrivate equity fund for Community Reinvestment Act purposes\t730\t0\t0\t0\t730\nOperating leases (premises)\t4327\t8323\t7607\t17842\t38099\nTotal contractual obligations\t7802063\t675615\t34566\t160018\t8672262\nOff-balance sheet loan commitments: 2\t\t\t\t\t\nUnused commitments to extend credit\t911691\t589360\t220304\t63926\t1785281\nUnused capacity on Warehouse Purchase Program loans 3\t608167\t12149\t0\t0\t620316\nStandby letters of credit\t54612\t6365\t876\t0\t61853\nTotal loan commitments\t1574470\t607874\t221180\t63926\t2467450\nTotal contractual obligations and loan commitments\t\t\t\t\t11139712\n", "q10k_tbl_59": "\tActual\t\tRequired for Capital Adequacy Purposes\t\tTo Be Well-Capitalized\t\n\tAmount\tRatio\tAmount\tRatio\tAmount\tRatio\nJune 30 2019\t(Dollars in thousands)\t\t\t\t\t\nTotal risk-based capital\t\t\t\t\t\t\nCompany\t1191852\t12.97%\t735378\t8.00%\t919222\t10.00%\nBank\t1130419\t12.30\t735254\t8.00\t919067\t10.00\nTier 1 risk-based capital\t\t\t\t\t\t\nCompany\t975916\t10.62\t551533\t6.00\t551533\t6.00\nBank\t1037534\t11.29\t551440\t6.00\t735254\t8.00\nCommon equity tier 1 risk-based capital\t\t\t\t\t\t\nCompany\t963709\t10.48\t413650\t4.50\tn/a 1\tn/a 1\nBank\t1037534\t11.29\t413580\t4.50\t597394\t6.50\nTier 1 leverage\t\t\t\t\t\t\nCompany\t975916\t10.42\t374781\t4.00\tn/a 1\tn/a 1\nBank\t1037534\t11.07\t374804\t4.00\t468505\t5.00\nDecember 31 2018\t\t\t\t\t\t\nTotal risk-based capital\t\t\t\t\t\t\nCompany\t1126019\t13.48%\t668267\t8.00%\t835334\t10.00%\nBank\t1073807\t12.85\t668282\t8.00\t835352\t10.00\nTier 1 risk-based capital\t\t\t\t\t\t\nCompany\t934964\t11.19\t501200\t6.00\t501200\t6.00\nBank\t1005651\t12.04\t501211\t6.00\t668282\t8.00\nCommon equity tier 1 risk-based capital\t\t\t\t\t\t\nCompany\t922850\t11.05\t375900\t4.50\tn/a 1\tn/a 1\nBank\t1005651\t12.04\t375908\t4.50\t542979\t6.50\nTier 1 leverage\t\t\t\t\t\t\nCompany\t934964\t10.76\t347525\t4.00\tn/a 1\tn/a 1\nBank\t1005651\t11.57\t347644\t4.00\t434555\t5.00\n1 Not applicable\t\t\t\t\t\t\n", "q10k_tbl_60": "June 30 2019\t\t\t\t\t\t\t\nChange in Interest Rates in Basis Points\tEconomic Value of Equity\t\t\t\tEarnings at Risk (12 months)\t\t\nEstimated EVE\tEstimated Increase / (Decrease) in EVE\t\tEVE Ratio %\tEstimated Net Interest Income\tIncrease / (Decrease) in Estimated Net Interest Income\t\n\t Amount\t Change\t% Change\t\t Amount\t Change\t% Change\n\t(Dollars in thousands)\t\t\t\t\t\t\n400\t1333912\t(110145)\t(7.63)\t14.52\t393691\t21543\t5.79\n300\t1372307\t(71750)\t(4.97)\t14.69\t388239\t16091\t4.32\n200\t1408841\t(35216)\t(2.44)\t14.83\t382865\t10717\t2.88\n100\t1435701\t(8356)\t(0.58)\t14.87\t377045\t4897\t1.32\n0\t1444057\t0\t0\t14.73\t372148\t0\t0\n(100)\t1379353\t(64704)\t(4.48)\t13.88\t364156\t(7992)\t(2.15)\n", "q10k_tbl_61": "December 31 2018\t\t\t\t\t\t\t\nChange in Interest Rates in Basis Points\tEconomic Value of Equity\t\t\t\tEarnings at Risk (12 months)\t\t\nEstimated EVE\tEstimated Increase / (Decrease) in EVE\t\tEVE Ratio %\tEstimated Net Interest Income\tIncrease / (Decrease) in Estimated Net Interest Income\t\n\t Amount\t Change\t% Change\t\t Amount\t Change\t% Change\n\t(Dollars in thousands)\t\t\t\t\t\t\n400\t1380258\t(126105)\t(8.37)\t16.69\t383142\t22618\t6.27\n300\t1413122\t(93241)\t(6.19)\t16.80\t377525\t17001\t4.72\n200\t1450175\t(56188)\t(3.73)\t16.94\t372140\t11616\t3.22\n100\t1483983\t(22380)\t(1.49)\t17.03\t366596\t6072\t1.68\n0\t1506363\t0\t0\t17.00\t360524\t0\t0\n(100)\t1450810\t(55553)\t(3.69)\t16.13\t347307\t(13217)\t(3.67)\n", "q10k_tbl_62": "Exhibit Number\tDescription\n2.1\tAgreement and Plan of Merger dated as of November 25 2013 by and between the Registrant and LegacyTexas Group Inc. (incorporated herein by reference to Exhibit 2.1 of the Registrant's Current Report on Form 8-K filed with the SEC on November 25 2013 (File No. 001-34737))\n2.2\tAmendment No. One to the Agreement and Plan of Merger dated as of February 19 2014 by and between the Registrant and LegacyTexas Group Inc. (incorporated herein by reference to Exhibit 2.3 of the Registrant's Annual Report on Form 10-K filed with the SEC on February 26 2014 (File No. 001-34737))\n2.3\tAmendment No. Two to the Agreement and Plan of Merger dated as of August 29 2014 by and between the Registrant and LegacyTexas Group Inc. (incorporated herein by reference to Exhibit 2.1 of the Registrant's Current Report on Form 8-K filed with the SEC on August 29 2014 (File No. 001-34737))\n2.4\tAgreement and Plan of Reorganization dated as of June 16 2019 by and between the Registrant and Prosperity Bancshares Inc. (incorporated herein by reference to Exhibit 2.1 of the Registrant's Current Report on Form 8-K filed with the SEC on June 17 2019 (File No. 001-34737))\n3.1\tCharter of the Registrant (incorporated herein by reference to Exhibit 3.1 of the Registrant's Current Report on Form 8-K filed with the SEC on May 25 2017 (File No. 001-34737))\n3.2\tBylaws of the Registrant as amended (incorporated herein by reference to Exhibit 3.2 of the Registrant's Quarterly Report on Form 10-Q filed with the SEC on July 25 2017 (File No. 001-34737))\n4.1\tCertificate of Registrant's Common Stock (incorporated herein by reference to Exhibit 4.1 of the Registrant's Current Report on Form 8-K filed with the SEC on January 6 2015 (File No. 001-34737))\n4.2\tThe Registrant hereby agrees to furnish to the Commission upon request the instruments defining the rights of the holders of each issue of long-term debt of the Registrant and its consolidated subsidiaries.\n10.1\tViewPoint Bank Deferred Compensation Plan (incorporated herein by reference to Exhibit 10.7 to the Registrant's Registration Statement on Form S-1 as amended (File No. 0-24566-01))\n10.2\tAmended and Restated ViewPoint Bank Supplemental Executive Retirement Plan (incorporated herein by reference to Exhibit 10.8 to the Registrant's Registration Statement on Form S-1 as amended (File No. 0-24566-01))\n10.3\t2018 Executive Annual Incentive Plan (incorporated herein by reference to Exhibit 10.3 to the Registrant's Annual Report on Form 10-K filed with the SEC on February 8 2018 (File No. 001-34737))\n10.4\tChange in Control and Severance Benefits Agreement entered into between the Registrant and Mays Davenport (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on November 25 2013 (File No. 001-34737))\n10.5\tForm of Change In Control and Severance Benefits Agreement entered into between the Registrant and the following executive officers: Scott A. Almy Charles D. Eikenberg Thomas S. Swiley and Mark L. Williamson (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on December 2 2013 (File No. 001-34737))\n10.6\tAmended and Restated Executive Employment Agreement entered into between the Registrant and Kevin J. Hanigan (incorporated herein by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the SEC on December 2 2013 (File No. 001-34737))\n10.7\tRegistrant's 2007 Equity Incentive Plan (incorporated herein by reference to Appendix A to the proxy statement filed with the SEC on March 30 2007 (File No. 001-32992))\n10.8\tRegistrant's 2012 Equity Incentive Plan (incorporated herein by reference to Appendix A to the Registrant's proxy statement filed with the SEC on April 4 2012 (File No. 001-34737))\n", "q10k_tbl_63": "10.9\tForm of Incentive Stock Option Agreement under the 2012 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.2 to the Registrant's Registration Statement on Form S-8 filed with the SEC on June 14 2012 (File No. 333-182122))\n10.10\tForm of Non-Qualified Stock Option Agreement under the 2012 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.3 to the Registrant's Registration Statement on Form S-8 filed with the SEC on June 14 2012 (File No. 333-182122))\n10.11\tForm of Restricted Stock Agreement (Time-Based) under the 2012 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.4 to the Registrant's Registration Statement on Form S-8 filed with the SEC on June 14 2012 (File No. 333-182122))\n10.12\tForm of Restricted Stock Agreement (Performance-Based) under the 2012 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.5 to the Registrant's Registration Statement on Form S-8 filed with the SEC on June 14 2012 (File No. 333-182122))\n10.13\tForm of 2012 Equity Incentive Plan Restricted Stock Award and Non-Solicitation Agreement (incorporated herein by reference to Exhibit 10.10 to the Registrant's Quarterly Report on Form 10-Q filed with the SEC on July 26 2016 (File No. 001-34737))\n10.14\tForm of 2012 Equity Incentive Plan Non-Employee Restricted Stock Award Agreement (incorporated herein by reference to Exhibit 10.11 to the Registrant's Quarterly Report on Form 10-Q filed with the SEC on July 26 2016 (File No. 001-34737))\n10.15\tRegistrant's 2017 Omnibus Incentive Plan (incorporated herein by reference to Appendix A to the Registrant's proxy statement filed with the SEC on April 14 2017 (File No. 001-34737))\n10.16\tForm of Incentive Stock Option Agreement under the 2017 Omnibus Incentive Plan (incorporated herein by reference to Exhibit 99.2 to the Registrant's Registration Statement on Form S-8 filed with the SEC on November 7 2017 (File No. 333-221398))\n10.17\tForm of Non-Qualified Stock Option Agreement under the 2017 Omnibus Incentive Plan (incorporated herein by reference to Exhibit 99.3 to the Registrant's Registration Statement on Form S-8 filed with the SEC on November 7 2017 (File No. 333-221398))\n10.18\tForm of Restricted Stock Agreement (Management) under the 2017 Omnibus Incentive Plan (Time-Based vesting) (incorporated herein by reference to Exhibit 99.4 to the Registrant's Registration Statement on Form S-8 filed with the SEC on November 7 2017 (File No. 333-221398))\n10.19\tForm of Restricted Stock Agreement (Management) under the 2017 Omnibus Incentive Plan (Performance-Based vesting) (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on March 2 2018 (File No. 001-34737))\n10.20\tForm of Restricted Stock Agreement (Non-Employee Director) under the 2017 Omnibus Incentive Plan (Time-Based vesting) (incorporated herein by reference to Exhibit 99.6 to the Registrant's Registration Statement on Form S-8 filed with the SEC on November 7 2017 (File No. 333-221398))\n31.1\tRule 13a - 14(a)/15d - 14(a) Certification (Chief Executive Officer)\n31.2\tRule 13a - 14(a)/15d - 14(a) Certification (Chief Financial Officer)\n32\tSection 1350 Certifications\n101\tFinancial statements from Quarterly Report on Form 10-Q of the Registrant for the quarter ended June 30 2019 formatted in eXtensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets (ii) the Consolidated Statements of Income (iii) the Consolidated Statements of Comprehensive Income (iv) the Consolidated Statements of Changes in Shareholders' Equity (v) the Consolidated Statements of Cash Flows and (vi) the Condensed Notes to Unaudited Consolidated Interim Financial Statements. An instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.\n"}{"bs": "q10k_tbl_2", "is": "q10k_tbl_9", "cf": "q10k_tbl_6"}None
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 001-34737
LEGACYTEXAS FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
Maryland
27-2176993
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
5851 Legacy Circle
Plano,
Texas
75024
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s telephone number, including area code: (972) 578-5000
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol
Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share
LTXB
Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
CONDENSED NOTES TO UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
Note 1 - Basis of Financial Statement Presentation
The accompanying unaudited consolidated interim financial statements of LegacyTexas Financial Group, Inc. (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) and with the rules and regulations of the Securities and Exchange Commission for interim financial reporting. Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of management, all normal and recurring adjustments which are considered necessary to fairly present the results for the interim periods presented have been included. Certain items in prior periods were reclassified to conform to the current presentation. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”). Interim results are not necessarily indicative of results for a full year.
In preparing the financial statements, management is required to make estimates and assumptions that affect the recorded amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ from those estimates. For further information with respect to significant accounting policies followed by the Company in preparation of its consolidated financial statements, refer to the 2018 Form 10-K.
The accompanying unaudited consolidated interim financial statements include the accounts of the Company, whose business primarily consists of the operations of its wholly owned subsidiary, LegacyTexas Bank (the “Bank”). All significant intercompany transactions and balances are eliminated in consolidation.
On June 17, 2019, the Company and Prosperity Bancshares, Inc.® (“Prosperity”) jointly announced the signing of a definitive merger agreement (the “merger agreement”) pursuant to which the Company will merge with Prosperity, with Prosperity as the surviving entity.
Under the terms of the merger agreement, shareholders of the Company will receive 0.5280 shares of Prosperity common stock and $6.28 cash for each share of common stock, subject to certain conditions. Based on Prosperity’s closing price of $67.24 on June 14, 2019, the total consideration was valued at approximately $2.1 billion, or approximately $41.78 per share.
Kevin Hanigan, the Company’s President and Chief Executive Officer, will join the Prosperity team as the President and Chief Operating Officer of Prosperity and President of Prosperity Bank; and Mays Davenport, the Company’s Chief Financial Officer, will be named Executive Vice President and Director of Corporate Strategy of Prosperity and Prosperity Bank. Scott Almy, Tom Swiley, Chuck Eikenberg and Aaron Shelby will hold senior management positions at Prosperity Bank.
In addition, upon completion of the merger, Kevin Hanigan and two independent directors of the Company will join the Board of Directors of Prosperity, which will be expanded accordingly. Mays Davenport will join the Board of Directors of Prosperity Bank.
The merger has been unanimously approved by the Board of Directors of Prosperity and unanimously approved by the independent directors of LegacyTexas, with Mr. Hanigan abstaining, and is expected to close during the fourth quarter of 2019, although delays could occur. The transaction is subject to certain conditions, including the approval by the Company shareholders and Prosperity shareholders and customary regulatory approvals.
CONDENSED NOTES TO UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Dollars in thousands, except per share data)
Note 2 - Revenue Recognition
Revenue recognized from contracts with customers, which is accounted for under Accounting Standards Codification (“ASC”) 606, is entirely included in the Company’s non-interest income. Interest income and certain types of non-interest income are not accounted for under ASC 606 as it is accounted for under other accounting standards.Significant revenue streams recognized by the Company from contracts with customers accounted for under ASC 606 for the three and six months endedJune 30, 2019 and 2018, are below: