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Atlantic Union Bankshares Reports Third Quarter Results

RICHMOND, Va., Oct. 17, 2019 (GLOBE NEWSWIRE) -- Atlantic Union Bankshares Corporation (the “Company” or “Atlantic Union”) (AUB) today reported net income of $53.2 million and earnings per share of $0.65 for its third quarter ended September 30, 2019. Net operating earnings(1) were $56.1 million and operating earnings per share(1) were $0.69 for its third quarter ended September 30, 2019; these operating results exclude $1.9 million in after-tax merger and $895,000 in after-tax rebranding-related costs.

Net income was $137.7 million and earnings per share were $1.72 for the nine months ended September 30, 2019. Net operating earnings(1) were $163.7 million and operating earnings per share(1) were $2.04 for the nine months ended September 30, 2019; these operating results exclude $21.6 million in after-tax merger and $4.4 million in after-tax rebranding-related costs but include after tax losses from discontinued operations of $128,000 and approximately $1.0 million in after-tax expenses related to branch closure costs.

“Atlantic Union delivered solid financial results in the third quarter despite the challenges of the current interest rate environment,” said John C. Asbury, President and Chief Executive Officer for the Company. “As in the first and second quarters of 2019, third quarter results were noisy as we worked toward completing the Access National Bank integration work and our rebranding efforts and took strategic actions that impacted our reported quarterly financial results such as repositioning the balance sheet for lower interest rates. Nevertheless, the Company continues to perform well and remains committed to deliver on our previously communicated financial performance targets.

“October marks my three-year anniversary of having joined the Company and the considerable enthusiasm and optimism I felt walking in the door is now greater still. It has been an exciting transformation we have experienced, and continue to experience. The future looks bright for Atlantic Union as we set out to execute the next phase of our strategic plan.”

Select highlights for the third quarter of 2019

  • Notable activity during the third quarter:
    • The Company received approximately $9.3 million in life insurance proceeds during the quarter related to a Xenith-acquired loan that had been charged off prior to the Company’s acquisition of Xenith Bankshares, Inc. (“Xenith”) which was recorded in non-interest income.
    • The Company recorded a gain on the sale of investment securities of approximately $7.1 million during the quarter.
    • The Company paid off $140.0 million in FHLB advances and terminated the related cash flow hedges which resulted in the recognition of approximately $16.4 million in loss on debt extinguishment recorded in non-interest expense.
  • Performance metrics
    • Return on Average Assets (“ROA”) was 1.23% compared to 1.15% in the second quarter of 2019. Operating ROA(1) was 1.29% compared to 1.35% in the second quarter of 2019.
    • Return on Average Equity (“ROE”) was 8.35% compared to 7.86% in the second quarter of 2019. Operating ROE(1) was 8.80% compared to 9.20% in the second quarter of 2019.
    • Operating ROTCE(1) was 15.64% compared to 16.58% in the second quarter of 2019.
    • Efficiency ratio improved to 60.47% from 62.43% in the second quarter of 2019. Operating efficiency ratio (FTE)(1) increased to 55.12% from 52.46% in the second quarter of 2019. The notable transactions discussed above had a negative impact on the efficiency ratio by approximately 430 basis points.

(1) These are financial measures not calculated in accordance with generally accepted accounting principles (“GAAP”). For a reconciliation of these non-GAAP financial measures, see Alternative Performance Measures (non-GAAP) section of the Key Financial Results       

NET INTEREST INCOME

For the third quarter of 2019, net interest income was $136.6 million, a decrease of $2.0 million from the second quarter of 2019. Net interest income (FTE)(1) was $139.4 million in the third quarter of 2019, a decrease of $2.1 million from the second quarter of 2019. The decreases in both net interest income and net interest income (FTE) were primarily driven by $2.7 million lower acquisition accounting accretion income during the three months ended September 30, 2019 compared to the three months ended June 30, 2019. The third quarter net interest margin decreased 14 basis points to 3.57% from 3.71% in the previous quarter, while the net interest margin (FTE)(1) decreased 14 basis points to 3.64% from 3.78% during the same periods. The decreases in the net interest margin and net interest margin (FTE) were principally due to a 19 basis point decrease in the yield on earning assets, partially offset by a 5 basis point decrease in the cost of funds.

The Company’s net interest margin (FTE) includes the impact of acquisition accounting fair value adjustments. During the third quarter of 2019, net accretion related to acquisition accounting decreased $2.7 million from the prior quarter to $5.1 million for the quarter ended September 30, 2019. The second and third quarters of 2019, and the remaining estimated net accretion impact are reflected in the following table (dollars in thousands):

                         
          Deposit             
    Loan   Accretion   Borrowings      
    Accretion   (Amortization)   Amortization   Total
For the quarter ended June 30, 2019   $  7,659      213        (70 )   $  7,802
For the quarter ended September 30, 2019      5,018      179        (97 )      5,100
For the remaining three months of 2019 (estimated)      4,596      149        (123 )      4,622
For the years ending (estimated):                        
2020      16,737      132        (633 )      16,236
2021      11,914      14        (807 )      11,121
2022      9,560      (43 )      (829 )      8,688
2023      6,777      (32 )      (852 )      5,893
2024      4,973      (4 )      (877 )      4,092
Thereafter      18,176      (1 )      (10,773 )      7,402

ASSET QUALITY/LOAN LOSS PROVISION

Overview

During the third quarter of 2019, the Company experienced increases in nonperforming assets (“NPA”) and past due loan levels as a percentage of total loans from the prior quarter. Net charge-off levels increased from the second quarter of 2019 and were primarily related to the consumer loan portfolio and a construction and land development loan; as a result, and due to loan growth, the provision for loan losses increased from the second quarter of 2019.

All nonaccrual and past due loan metrics discussed below exclude purchased credit impaired (“PCI”) loans totaling $89.7 million (net of fair value mark of $24.0 million) at September 30, 2019.

(1) For a reconciliation of this non-GAAP financial measure, see Alternative Performance Measures (non-GAAP) section of the Key Financial Results

Nonperforming Assets

At September 30, 2019, NPAs totaled $36.4 million, an increase of $2.4 million, or 7.2%, from June 30, 2019 and an increase of $1.5 million, or 4.3%, from September 30, 2018. The increase in NPAs was primarily driven by the addition
of a construction and land development loan.

NPAs as a percentage of total outstanding loans at September 30, 2019 were 0.30%, an increase of 2 basis points from 0.28% at June 30, 2019 and a decline of 7 basis points from 0.37% at September 30, 2018. As the Company’s NPAs have been at or near historic lows over the last several quarters, certain changes from quarter to quarter might stand out in comparison to one another but do not have a significant impact on the Company’s overall asset quality position.

The following table shows a summary of nonperforming asset balances at the quarter ended (dollars in thousands):

                               
    September 30,    June 30,    March 31,    December 31,    September 30, 
    2019   2019   2019   2018   2018
Nonaccrual loans   $  30,032   $  27,462   $  24,841   $  26,953   $  28,110
Foreclosed properties      6,385      6,506      7,353      6,722      6,800
Total nonperforming assets   $  36,417   $  33,968   $  32,194   $  33,675   $  34,910

The following table shows the activity in nonaccrual loans for the quarter ended (dollars in thousands):

                               
    September 30,    June 30,    March 31,    December 31,    September 30, 
    2019   2019   2019   2018   2018
Beginning Balance   $  27,462     $  24,841     $  26,953     $  28,110     $  25,662  
Net customer payments      (3,612 )      (3,108 )      (2,314 )      (3,077 )      (2,459 )
Additions      8,327        6,321        3,297        4,659        6,268  
Charge-offs      (884 )      (592 )      (1,626 )      (2,069 )      (1,137 )
Loans returning to accruing status      (1,103 )      —        (952 )      (420 )      (70 )
Transfers to foreclosed property      (158 )      —        (517 )      (250 )      (154 )
Ending Balance   $  30,032     $  27,462     $  24,841     $  26,953     $  28,110  

The following table shows the activity in foreclosed properties for the quarter ended (dollars in thousands):

                               
    September 30,    June 30,    March 31,    December 31,    September 30, 
    2019   2019   2019   2018   2018
Beginning Balance   $  6,506     $  7,353     $  6,722     $  6,800     $  7,241  
Additions of foreclosed property      645        271        900        432        165  
Valuation adjustments      (62 )      (433 )      (51 )      (140 )      (42 )
Proceeds from sales      (737 )      (638 )      (171 )      (286 )      (889 )
Gains (losses) from sales      33        (47 )      (47 )      (84 )      325  
Ending Balance   $  6,385     $  6,506     $  7,353     $  6,722     $  6,800  

Past Due Loans

Past due loans still accruing interest totaled $55.1 million or 0.45% of total loans held for investment at September 30, 2019 compared to $43.1 million or 0.35% of total loans held for investment at June 30, 2019, and $46.6 million or 0.49% of total loans held for investment at September 30, 2018. Subsequent to quarter-end, approximately $12.0 million of the accruing past due loans became current. Of the total past due loans still accruing interest $12.0 million or 0.10% of total loans held for investment were loans past due 90 days or more at September 30, 2019, compared to $8.8 million or 0.07% of total loans held for investment at June 30, 2019, and $9.5 million or 0.10% of total loans held for investment at September 30, 2018.

Net Charge-offs

For the third quarter of 2019, net charge-offs were $7.7 million or 0.25% of total average loans on an annualized basis, compared to $4.3 million or 0.14%, for the prior quarter, and $3.2 million or 0.13%, for the third quarter of 2018. The majority of net charge-offs in the third quarter of 2019 were related to consumer loans and a construction and land development loan. On a year to date basis, net charge-offs were $16.2 million, or 0.18% of total average loans on an annualized basis.

Provision for Loan Losses

The provision for loan losses for the third quarter of 2019 was $9.1 million, an increase of $3.2 million compared to the previous quarter and an increase of $6.0 million compared to the third quarter of 2018. The increase in the provision for loan losses from the previous quarter and prior year was primarily due to an increase in net charge-offs and loan growth.

Allowance for Loan Losses (“ALL”)

The ALL increased $1.4 million from June 30, 2019 to $43.8 million at September 30, 2019, primarily due to loan growth during the quarter. The ALL as a percentage of the total loan portfolio was 0.36% at September 30, 2019, 0.35% at June 30, 2019, and 0.44% at September 30, 2018.

The ratio of the ALL to nonaccrual loans was 145.9% at September 30, 2019, compared to 154.6% at June 30, 2019 and 146.9% at September 30, 2018. The current level of the allowance for loan losses reflects specific reserves related to nonperforming loans, current risk ratings on loans, net charge-off activity, loan growth, delinquency trends, and other credit risk factors that the Company considers important in assessing the adequacy of the allowance for loan losses.

NONINTEREST INCOME

Noninterest income increased $17.5 million to $48.1 million for the quarter ended September 30, 2019 from $30.6 million in the prior quarter primarily driven by approximately $9.3 million in life insurance proceeds received during the quarter related to a Xenith-acquired loan that had been charged off prior to the Company’s acquisition of Xenith and a gain on sale of investment securities of approximately $7.1 million recorded during the quarter. In addition, loan related interest rate swap income increased $1.8 million and mortgage banking income increased approximately $600,000 from the prior quarter.  Partially offsetting these increases was a decline of $3.5 million in net interchange income primarily due to reduced debit card interchange transaction fees as a result of the Durbin Amendment which was effective for the Company on July 1, 2019.

NONINTEREST EXPENSE

Noninterest expense increased $6.1 million to $111.7 million for the quarter ended September 30, 2019 from $105.6 million in the prior quarter. Excluding merger-related costs, amortization of intangible assets, and rebranding-related costs, operating noninterest expense(1) increased $13.1 million, or 14.5%, in the third quarter of 2019, to $103.4 million when compared to the second quarter of 2019. The increase in operating noninterest expense was primarily due to the recognition of approximately $16.4 million loss on debt extinguishment resulting from the repayment of approximately $140.0 million in FHLB advances and the termination of the related cash flow hedges. In addition, third quarter operating noninterest expense included approximately $309,000 in OREO valuation adjustments driven by updated appraisals received during the quarter, $275,000 in recruiting costs related to the new equipment finance division, $1.0 million in support of a community development initiative as well as an FDIC small bank assessment expense credit of approximately $2.4 million as the deposit insurance fund reserve ratio exceeded 1.38% in the second quarter.

(1) For a reconciliation of this non-GAAP financial measure, see Alternative Performance Measures (non-GAAP) section of the Key Financial Results

INCOME TAXES

The effective tax rate for the three months ended September 30, 2019 was 16.8% compared to 16.0% for the three months ended June 30, 2019. The increase in the effective tax rate as compared to the previous quarter was primarily due to the lower proportion of tax-exempt income to pre-tax income.

BALANCE SHEET

At September 30, 2019, total assets were $17.4 billion, an increase of $281.7 million, or approximately 6.6% (annualized), from June 30, 2019, primarily due to higher cash and cash equivalent balances and loan growth during the third quarter of 2019.

At September 30, 2019, loans held for investment (net of deferred fees and costs) were $12.3 billion, an increase of $86.5 million, or 2.8% (annualized), from June 30, 2019, while average loans increased $155.3 million, or 5.1% (annualized), from the prior quarter.

At September 30, 2019, total deposits were $13.0 billion, an increase of $529.2 million, or approximately 16.9% (annualized), from June 30, 2019, while average deposits increased $358.5 million, or 11.5% (annualized), from prior quarter. 

The following table shows the Company’s capital ratios at the quarters ended:

               
    September 30,    December 31,    September 30,   
    2019   2018   2018  
Common equity Tier 1 capital ratio (2)    10.48  9.93  9.92 %
Tier 1 capital ratio (2)    10.48  11.09  11.12 %
Total capital ratio (2)    12.93  12.88  12.97 %
Leverage ratio (Tier 1 capital to average assets) (2)    8.94  9.71  9.89 %
Common equity to total assets    14.48  13.98  14.06 %
Tangible common equity to tangible assets (1)    9.23  8.84  8.74 %

(1) For a reconciliation of this non-GAAP financial measure, see Alternative Performance Measures (non-GAAP) section of the Key Financial Results
(2) All ratios at September 30, 2019 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed.

During the third quarter of 2019, the Company declared and paid cash dividends of $0.25 per common share, an increase of $0.02, or 8.7%, compared to both the second quarter of 2019 and third quarter of 2018. On July 10, 2019, the Company announced that its Board of Directors has authorized a share repurchase program to purchase up to $150 million of the Company’s common stock through June 30, 2021 in open market transactions or privately negotiated transactions. As of September 30, 2019, authority remained to repurchase approximately $115 million of the Company’s common stock.

ABOUT ATLANTIC UNION BANKSHARES CORPORATION

Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 149 branches and approximately 170 ATMs located throughout Virginia, and in portions of Maryland and North Carolina. Middleburg Financial is a brand name used by Atlantic Union Bank and certain affiliates when providing trust, wealth management, private banking, and investment advisory products and services. Certain non-bank affiliates of Atlantic Union Bank include: Old Dominion Capital Management, Inc., and its subsidiary, Outfitter Advisors, Ltd., Dixon, Hubard, Feinour, & Brown, Inc., and Middleburg Investment Services, LLC, which provide investment advisory and/or brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

THIRD QUARTER 2019 EARNINGS RELEASE CONFERENCE CALL

Atlantic Union Bank will hold a conference call on Thursday, October 17th, 2019 at 9:00 a.m. Eastern Daylight Time during which management will review the third quarter 2019 financial results and provide an update on recent activities. Interested parties may participate in the call toll-free by dialing (877) 668‑4908; international callers wishing to participate may do so by dialing (973) 453‑3058. The conference ID number is 8187156.

NON-GAAP FINANCIAL MEASURES

In reporting the results of the quarter and nine months ended September 30, 2019, the Company has provided supplemental performance measures on a tax-equivalent, tangible, or operating basis. These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. In addition, the Company’s non-GAAP financial measures may not be comparable to non-GAAP financial measures of other companies. The Company uses the non-GAAP financial measures discussed herein in its analysis of the Company’s performance. The Company’s management believes that these non-GAAP financial measures provide additional understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented without the impact of items or events that may obscure trends in the Company’s underlying performance. For a reconciliation of these measures to their most directly comparable GAAP measures and additional information about these non-GAAP financial measures, see Alternative Performance Measures (non-GAAP) section of the Key Financial Results.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, projections, predictions, expectations, or beliefs about future events or results that are not statements of historical fact. Such forward-looking statements are based on various assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are often accompanied by words that convey projected future events or outcomes such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” or words of similar meaning or other statements concerning opinions or judgment of the Company and its management about future events. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of, or trends affecting, the Company will not differ materially from any projected future results, performance, or achievements expressed or implied by such forward-looking statements. Actual future results, performance, achievements or trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to:

  • changes in interest rates;
  • general economic and financial market conditions in the United States generally and particularly in the markets in which the Company operates and which its loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels, and slowdowns in economic growth,
  • the Company’s ability to manage its growth or implement its growth strategy;
  • the introduction of new lines of business or new products and services;
  • the possibility that any of the anticipated benefits of the acquisition of Access will not be realized or will not be realized within the expected time period, the expected revenue synergies and cost savings from the acquisition may not be fully realized or realized within the expected time frame, revenues following the acquisition may be lower than expected, or customer and employee relationships and business operations may be disrupted by the acquisition;
  • the Company’s ability to recruit and retain key employees;
  • the incremental cost and/or decreased revenues associated with exceeding $10 billion in assets;
  • real estate values in the Bank’s lending area;
  • an insufficient allowance for loan losses;
  • the quality or composition of the loan or investment portfolios;
  • concentrations of loans secured by real estate, particularly commercial real estate;
  • the effectiveness of the Company’s credit processes and management of the Company’s credit risk;
  • demand for loan products and financial services in the Company’s market area;
  • the Company’s ability to compete in the market for financial services;
  • technological risks and developments, and cyber threats, attacks, or events;
  • performance by the Company’s counterparties or vendors;
  • deposit flows;
  • the availability of financing and the terms thereof;
  • the level of prepayments on loans and mortgage-backed securities;
  • legislative or regulatory changes and requirements;
  • the effects of changes in federal, state or local tax laws and regulations;
  • monetary and fiscal policies of the U.S. government including policies of the U.S. Department of the Treasury and the Federal Reserve;
  • changes to applicable accounting principles and guidelines; and
  • other factors, many of which are beyond the control of the Company.

Please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10‑K for the year ended December 31, 2018 and comparable “Risk Factors” sections of the Company’s Quarterly Reports on Form 10‑Q and related disclosures in other filings, which have been filed with the SEC and are available on the SEC’s website at www.sec.gov. All of the forward-looking statements made in this press release are expressly qualified by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or its businesses or operations. Readers are cautioned not to rely too heavily on the forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made and the Company does not undertake any obligation to update, revise or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.


ATLANTIC UNION BANKSHARES CORPORATION AND SUBSIDIARIES
KEY FINANCIAL RESULTS
(Dollars in thousands, except share data)

                                 
    As of & For Three Months Ended   As of & For Nine Months Ended  
    09/30/19   06/30/19   09/30/18   09/30/19   09/30/18  
Results of Operations   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)  
Interest and dividend income   $  178,345   $  181,125     $  131,363     $  525,122     $  388,151    
Interest expense      41,744      42,531        25,400        122,379        70,549    
Net interest income      136,601      138,594        105,963        402,743        317,602    
Provision for credit losses      9,100      5,300        3,340        18,192        9,011    
Net interest income after provision for credit losses      127,501      133,294        102,623        384,551        308,591    
Noninterest income      48,106      30,578        19,887        103,621        80,752    
Noninterest expenses      111,687      105,608        76,349        324,022        263,234    
Income before income taxes      63,920      58,264        46,161        164,150        126,109    
Income tax expense      10,724      9,356        7,399        26,330        20,973    
Income from continuing operations      53,196      48,908        38,762        137,820        105,136    
Discontinued operations, net of tax      42      (85 )      (565 )      (128 )      (2,973 )  
Net income   $  53,238   $  48,823     $  38,197     $  137,692     $  102,163    
                                 
Interest earned on earning assets (FTE) (1)   $  181,149   $  184,045     $  133,377     $  533,590     $  394,011    
Net interest income (FTE) (1)      139,405      141,514        107,977        411,211        323,462    
                                 
Key Ratios                                
Earnings per common share, diluted   $ 0.65   $ 0.59     $ 0.58     $ 1.72     $ 1.55    
Return on average assets (ROA)     1.23   1.15     1.17     1.11     1.05  
Return on average equity (ROE)     8.35   7.86     8.06     7.58     7.38  
Efficiency ratio     60.47   62.43 %     60.67     63.99     66.08  
Net interest margin     3.57   3.71     3.69     3.66     3.69  
Net interest margin (FTE) (1)     3.64   3.78     3.76     3.74     3.76  
Yields on earning assets (FTE) (1)     4.73   4.92     4.65     4.85     4.58  
Cost of interest-bearing liabilities     1.45   1.50     1.15     1.47     1.05  
Cost of deposits     0.95   0.93     0.65     0.92     0.56  
Cost of funds     1.09   1.14     0.89     1.11     0.82  
                                 
Operating Measures (4)                                
Net operating earnings   $  56,057   $  57,089     $  39,326     $  163,665     $  132,065    
Operating earnings per share, diluted   $ 0.69   $ 0.70     $ 0.60     $ 2.04     $ 2.01    
Operating ROA     1.29   1.35     1.21     1.32     1.35  
Operating ROE     8.80   9.20     8.30     9.01     9.54  
Operating ROTCE (2) (3)     15.64   16.58     15.13     16.18     17.41  
Operating efficiency ratio (FTE) (1)(6)     55.12   52.46     58.59     53.92     55.87  
                                 
Per Share Data                                
Earnings per common share, basic   $ 0.65   $ 0.59     $ 0.58     $ 1.72     $ 1.55    
Earnings per common share, diluted     0.65     0.59       0.58       1.72       1.55    
Cash dividends paid per common share     0.25     0.23       0.23       0.71       0.65    
Market value per share     37.25     35.33       38.53       37.25       38.53    
Book value per common share     31.29     30.78       28.68       31.29       28.68    
Tangible book value per common share (2)     18.80     18.36       16.79       18.80       16.79    
Price to earnings ratio, diluted     14.44     14.93       16.74       16.20       18.59    
Price to book value per common share ratio     1.19     1.15       1.34       1.19       1.34    
Price to tangible book value per common share ratio (2)     1.98     1.92       2.29       1.98       2.29    
Weighted average common shares outstanding, basic      81,769,193      82,062,585        65,974,702        80,120,725        65,817,668    
Weighted average common shares outstanding, diluted      81,832,868      82,125,194        66,013,152        80,183,113        65,873,202    
Common shares outstanding at end of period      81,147,896      82,086,736        65,982,669        81,147,896        65,982,669    


                                 
    As of & For Three Months Ended   As of & For Nine Months Ended  
    09/30/19   06/30/19   09/30/18   09/30/19   09/30/18  
Capital Ratios   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)  
Common equity Tier 1 capital ratio (5)     10.48   10.53   9.92 %   10.48   9.92 %
Tier 1 capital ratio (5)     10.48   10.53   11.12 %   10.48   11.12 %
Total capital ratio (5)     12.93   13.00   12.97 %   12.93   12.97 %
Leverage ratio (Tier 1 capital to average assets) (5)     8.94   9.00   9.89 %   8.94   9.89 %
Common equity to total assets     14.48   14.64   14.06 %   14.48   14.06 %
Tangible common equity to tangible assets (2)     9.23   9.28   8.74 %   9.23   8.74 %
                                 
Financial Condition                                
Assets   $  17,441,035   $  17,159,384   $  13,371,742   $  17,441,035   $  13,371,742  
Loans held for investment      12,306,997      12,220,514      9,411,598      12,306,997      9,411,598  
Securities      2,607,748      2,703,856      2,258,239      2,607,748      2,258,239  
Earning Assets      15,365,753      15,140,370      11,808,717      15,365,753      11,808,717  
Goodwill      929,815      930,449      727,699      929,815      727,699  
Amortizable intangibles, net      78,241      82,976      51,563      78,241      51,563  
Deposits      13,044,712      12,515,544      9,834,695      13,044,712      9,834,695  
Borrowings      1,549,181      1,909,171      1,554,642      1,549,181      1,554,642  
Stockholders' equity      2,525,031      2,512,295      1,880,029      2,525,031      1,880,029  
Tangible common equity (2)      1,516,975      1,498,870      1,100,767      1,516,975      1,100,767  
                                 
Loans held for investment, net of deferred fees and costs                                
Construction and land development   $  1,201,149   $  1,267,712   $  1,178,054   $  1,201,149   $  1,178,054  
Commercial real estate - owner occupied      1,979,052      1,966,776      1,283,125      1,979,052      1,283,125  
Commercial real estate - non-owner occupied      3,198,580      3,104,823      2,427,251      3,198,580      2,427,251  
Multifamily real estate      659,946      602,115      542,662      659,946      542,662  
Commercial & Industrial      2,058,133      2,032,799      1,154,583      2,058,133      1,154,583  
Residential 1-4 Family - Commercial      721,185      723,636      646,581      721,185      646,581  
Residential 1-4 Family - Consumer      913,245      928,130      684,945      913,245      684,945  
Auto      328,456      311,858      306,196      328,456      306,196  
HELOC      660,963      660,621      612,116      660,963      612,116  
Consumer      386,848      383,653      345,320      386,848      345,320  
Other Commercial      199,440      238,391      230,765      199,440      230,765  
Total loans held for investment   $  12,306,997   $  12,220,514   $  9,411,598   $  12,306,997   $  9,411,598  
                                 
Deposits                                
NOW accounts   $  2,515,777   $  2,552,159   $  2,205,262   $  2,515,777   $  2,205,262  
Money market accounts      3,737,426      3,592,523      2,704,480      3,737,426      2,704,480  
Savings accounts      739,505      749,472      635,788      739,505      635,788  
Time deposits of $250,000 and over      717,090      579,786      324,253      717,090      324,253  
Other time deposits      2,179,740      2,026,708      1,775,025      2,179,740      1,775,025  
Time deposits      2,896,830      2,606,494      2,099,278      2,896,830      2,099,278  
Total interest-bearing deposits   $  9,889,538   $  9,500,648   $  7,644,808   $  9,889,538   $  7,644,808  
Demand deposits      3,155,174      3,014,896      2,189,887      3,155,174      2,189,887  
Total deposits   $  13,044,712   $  12,515,544   $  9,834,695   $  13,044,712   $  9,834,695  
                                 
Averages                                
Assets   $  17,203,328   $  16,997,531   $  12,947,352   $  16,639,041   $  13,061,453  
Loans held for investment      12,240,254      12,084,961      9,297,213      11,821,612      9,594,094  
Loans held for sale      75,558      47,061      23,892      46,095      28,151  
Securities      2,660,270      2,738,528      1,966,010      2,681,463      1,720,978  
Earning assets      15,191,792      15,002,726      11,383,320      14,700,019      11,506,200  
Deposits      12,812,211      12,453,702      9,803,475      12,250,199      9,638,698  
Time deposits      2,769,574      2,562,498      2,079,686      2,554,058      2,076,321  
Interest-bearing deposits      9,803,624      9,555,093      7,635,710      9,408,182      7,559,053  
Borrowings      1,623,681      1,847,325      1,155,093      1,753,276      1,460,685  
Interest-bearing liabilities      11,427,305      11,402,418      8,790,803      11,161,458      9,019,738  
Stockholders' equity      2,528,435      2,490,049      1,880,582      2,429,912      1,851,072  
Tangible common equity (2)      1,517,400      1,475,028      1,103,530      1,442,831      1,074,303  


                                 
    As of & For Three Months Ended   As of & For Nine Months Ended  
    09/30/19   06/30/19   09/30/18   09/30/19   09/30/18  
Asset Quality   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)  
Allowance for Loan Losses (ALL)                                
Beginning balance   $  42,463   $  40,827   $  41,270   $  41,045   $  38,208    
Add: Recoveries      1,574      1,670      1,401      4,940      4,082    
Less: Charge-offs      9,317      5,934      4,560      21,190      10,099    
Add: Provision for loan losses      9,100      5,900      3,100      19,025      9,284    
Add: Provision for loan losses included in discontinued operations      —      —      83      —      (181 )  
Ending balance   $  43,820   $  42,463   $  41,294   $  43,820   $  41,294    
                                 
ALL / total outstanding loans     0.36   0.35   0.44 %   0.36   0.44  
Net charge-offs / total average loans     0.25   0.14   0.13 %   0.18   0.08  
Provision / total average loans     0.29   0.20   0.13 %   0.22   0.13  
  `                              
Total PCI loans, net of fair value mark   $  89,735   $  101,301   $  94,746   $  89,735   $  94,746    
Remaining fair value mark on purchased performing loans      54,067      58,583      33,428      54,067      33,428    
                                 
Nonperforming Assets                                
Construction and land development   $  7,785   $  5,619   $  9,221   $  7,785   $  9,221    
Commercial real estate - owner occupied      5,684      4,062      3,202      5,684      3,202    
Commercial real estate - non-owner occupied      381      1,685      1,812      381      1,812    
Commercial & Industrial      1,585      1,183      1,404      1,585      1,404    
Residential 1-4 Family - Commercial      3,879      4,135      1,956      3,879      1,956    
Residential 1-4 Family - Consumer      8,292      8,677      8,535      8,292      8,535    
Auto      604      449      525      604      525    
HELOC      1,641      1,432      1,273      1,641      1,273    
Consumer and all other      181      220      182      181      182    
Nonaccrual loans   $  30,032   $  27,462   $  28,110   $  30,032   $  28,110    
Foreclosed property      6,385      6,506      6,800      6,385      6,800    
Total nonperforming assets (NPAs)   $  36,417   $  33,968   $  34,910   $  36,417   $  34,910    
Construction and land development   $  171   $  855   $  442   $  171   $  442    
Commercial real estate - owner occupied      2,571      2,540      3,586      2,571      3,586    
Commercial real estate - non-owner occupied      36      1,489      —      36      —    
Multifamily real estate      1,212      —      —      1,212      —    
Commercial & Industrial      265      295      256      265      256    
Residential 1-4 Family - Commercial      916      863      378      916      378    
Residential 1-4 Family - Consumer      3,815      845      2,543      3,815      2,543    
Auto      183      122      211      183      211    
HELOC      1,674      658      1,291      1,674      1,291    
Consumer and all other      1,193      1,161      825      1,193      825    
Loans ≥ 90 days and still accruing   $  12,036   $  8,828   $  9,532   $  12,036   $  9,532    
Total NPAs and loans ≥ 90 days   $  48,453   $  42,796   $  44,442   $  48,453   $  44,442    
NPAs / total outstanding loans      0.30   0.28   0.37 %    0.30   0.37  
NPAs / total assets      0.21   0.20   0.26 %    0.21   0.26  
ALL / nonaccrual loans     145.91   154.62   146.90 %   145.91   146.90  
ALL / nonperforming assets     120.33   125.01   118.29 %   120.33   118.29  
Past Due Detail                                
Construction and land development   $  1,062   $  2,327   $  1,351   $  1,062   $  1,351    
Commercial real estate - owner occupied      4,977      1,707      4,218      4,977      4,218    
Commercial real estate - non-owner occupied      5,757      141      492      5,757      492    
Multifamily real estate      107      1,218      553      107      553    
Commercial & Industrial      2,079      3,223      2,239      2,079      2,239    
Residential 1-4 Family - Commercial      1,842      1,622      2,535      1,842      2,535    
Residential 1-4 Family - Consumer      1,527      5,969      4,506      1,527      4,506    
Auto      1,787      2,120      2,414      1,787      2,414    
HELOC      4,965      4,978      4,783      4,965      4,783    
Consumer and all other      2,579      2,824      2,640      2,579      2,640    
Loans 30-59 days past due   $  26,682   $  26,129   $  25,731   $  26,682   $  25,731    


...
                                 
    As of & For Three Months Ended   As of & For Nine Months Ended  
    09/30/19   06/30/19   09/30/18   09/30/19   9/30/2018  
Past Due Detail cont'd   (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)  
Construction and land development   $  351   $  318   $  1,826   $  351   $  1,826  
Commercial real estate - owner occupied      —      —      539      —      539  
Commercial real estate - non-owner occupied      1,878      164      —      1,878      —  
Multifamily real estate      164      —      —      164      —  
Commercial & Industrial      1,946      1,175      428      1,946      428  
Residential 1-4 Family - Commercial      3,081      651      1,892      3,081      1,892  
Residential 1-4 Family - Consumer      5,182      2,801      3,793      5,182      3,793  
Auto      407      299      299      407