0001501570-21-000133 | 10-K | XBRL Viewer

Deposits

Deposits in the accompanying consolidated balance sheets are summarized as follows:


	December 31,
	2020		2019
Noninterest-bearing demand accounts	$	2,097,099	$	1,556,500
Interest-bearing demand accounts	453,111		388,877
Savings accounts	106,820		86,079
Limited access money market accounts	2,398,525		2,180,016
Certificates of deposit, greater than $100	1,179,853		1,234,324
Certificates of deposit, less than $100	277,438		448,554
Total	$	6,512,846	$	5,894,350

As of December 31, 2020, the scheduled maturities of certificates of deposit were as follows:


Year	Amount
2021	$	1,194,780
2022	217,932
2023	24,035
2024	12,365
2025	8,179

Total	$	1,457,291

The aggregate amount of demand deposit overdrafts that have been reclassified as loans were $106 and $259 as of December 31, 2020 and 2019, respectively. Brokered deposits at December 31, 2020 and 2019 totaled approximately $199,801 and $312,467, respectively.

Advances from the FHLB

12 Months Ended

Dec. 31, 2020

Advances from the Federal Home Loan Bank (FHLB)

Advances from the FHLB

Advances from the FHLB totaled $777,718 and $677,870 at December 31, 2020 and 2019, respectively. As of December 31, 2020, the advances were collateralized by a blanket floating lien on certain debt securities and loans, had a weighted average rate of 0.94% and mature on various dates from 2022 to 2035. The Company had the availability to borrow additional funds of approximately $766,437 as of December 31, 2020.

Contractual maturities of FHLB advances at December 31, 2020 were as follows:



2022	$	27,718



2025 and thereafter	750,000
Total	$	777,718

Other Credit Extensions	12 Months Ended
Other Credit Extensions	Dec. 31, 2020
Debt Disclosure [Abstract]
Other Credit Extensions	Other Credit Extensions As of December 31, 2020 the Company maintained five credit facilities with commercial banks that provided federal funds credit extensions with an availability to borrow up to an aggregate amount of $175,000. As of December 31, 2019, the Company maintained three credit facilities with commercial banks that provide federal funds credit extensions with an availability to borrow up to an aggregate amount of approximately $150,000. There were no borrowings under these credit facilities as of December 31, 2020 and 2019. As of December 31, 2020 and 2019, the Company maintained a secured line of credit with the FRB with an availability to borrow approximately $871,485 and $1,022,401, respectively. Approximately $94,222 and $843,861 of commercial loans were pledged as collateral at December 31, 2020 and 2019, respectively. There were no borrowings under this line of credit as of December 31, 2020 and 2019.

Borrowed Funds

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Borrowed Funds

Borrowed funds in the accompanying consolidated balance sheets are as follows:


	December 31,
	2020		2019
Junior subordinated debentures (1)	$	30,244	$	30,023
Subordinated notes (2)	232,534		115,548
	$	262,778	$	145,571

(1) Junior subordinated debentures are net of a discount of $3,624 and 3,845 as of December 31, 2020 and 2019, respectively.

(2) Subordinated notes include a premium of $1,038 and $2,081 and debt issuance costs of $3,504 and $1,533 as of December 31, 2020 and 2019, respectively.

Junior Subordinated Debentures

In connection with a previous acquisition, the Company assumed $3,093 in fixed to floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “Parkway Trust Securities”), issued by Parkway National Capital Trust I (“Parkway Trust”), a statutory business trust and acquired wholly owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the Parkway Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if Parkway Trust is liquidated or terminated.

The Company owns all of the outstanding common securities of the Parkway Trust. The Parkway Trust used the proceeds from the issuance of the Parkway Trust Securities to buy the debentures originally issued by Fidelity Resource Company. These debentures are the Parkway Trust’s only assets and the interest payments from the debentures finance the distributions paid on the Parkway Trust Securities.

The Parkway Trust Securities pay cumulative cash distributions quarterly at a rate per annum equal to the 3-month LIBOR plus 1.85%. So long as no event of default leading to an acceleration event has occurred, the Company has the right at any time and from time to time during the term of the debentures to defer payments of interest by extending the interest distribution period for up to twenty consecutive quarterly periods. The effective rate as of December 31, 2020 and 2019 was 2.07% and 3.74%, respectively. The Parkway Trust Securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures at the stated maturity in the year 2036 or their earlier redemption, in each case at a redemption price equal to the aggregate liquidation preference of the Parkway Trust Securities plus any accumulated and unpaid distributions thereon to the date of redemption. Prior redemption is permitted under certain circumstances.

In connection with the acquisition of Sovereign on August 1, 2017, the Company assumed $8,609 in floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “SovDallas Trust Securities”), issued by SovDallas Capital Trust I (“SovDallas Trust”), a statutory business trust and wholly-owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the SovDallas Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if SovDallas Trust is liquidated or terminated. The Company also owns all of the outstanding common securities of the SovDallas Trust.

The SovDallas Trust invested the total proceeds from the sale of the SovDallas Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Sovereign. Interest on the SovDallas Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 4.00%. Principal payments are due at maturity in July 2038. The effective rate as of December 31, 2020 and 2019 was 4.23% and 6.10%. The SovDallas Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest.

In connection with the acquisition of Green on January 1, 2019, the Company assumed $5,155 in floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “Patriot I Trust Securities”), issued by Patriot I Capital Trust I (“Patriot I Trust”), a statutory business trust and wholly-owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the Patriot I Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if Patriot I Trust is liquidated or terminated. The Company also owns all of the outstanding common securities of the Patriot I Trust.

The Patriot I Trust invested the total proceeds from the sale of the Patriot I Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Green. Interest on the Patriot I Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 1.85%. Principal payments are due at maturity in April 2036. The effective rate as of December 31, 2020 and 2019 was 2.09% and 3.84%. The Patriot I Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest.

In connection with the acquisition of Green on January 1, 2019, the Company assumed $17,011 in floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “Patriot II Trust Securities”), issued by Patriot II Capital Trust I (“Patriot II Trust”), a statutory business trust and wholly-owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the Patriot II Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if Patriot II Trust is liquidated or terminated. The Company also owns all of the outstanding common securities of the Patriot II Trust.

The Patriot II Trust invested the total proceeds from the sale of the Patriot II Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Sovereign. Interest on the Patriot II Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 1.80%. Principal payments are due at maturity in September 2037. The effective rate as of December 31, 2020 and 2019 was 2.02% and 3.69%. The Patriot II Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest.

The Parkway Trust Securities, SovDallas Trust Securities, Patriot I Trust Securities and Patriot II Trust Securities qualify as Tier 1 capital, subject to regulatory limitations, under guidelines established by the Federal Reserve.

Subordinated Notes

During 2013 the Company issued, in the aggregate principal amount of $5,000, subordinated promissory notes (the “Notes”) in a private offering. The Notes were issued to certain entities controlled by an affiliate of the Company. The Notes are unsecured, with interest payable quarterly at a fixed rate of 6.0% per annum, and unpaid principal and interest due at the stated maturity on December 31, 2023. The Notes qualify as Tier 2 Capital, subject to regulatory limitations, under guidelines established by the Federal Reserve. In addition, the Notes may be redeemed, in whole or in part, on any interest payment date that occurs on or after December 23, 2018, subject to approval of the Federal Reserve. The Notes were redeemed in whole on February 14, 2020.

In connection with the issuance of the Notes, the Company issued warrants to purchase 25,000 shares of common stock of the Company at an exercise price of $11.00 per share, exercisable at any time, in whole or in part, prior to December 31, 2023. The fair value of the warrants was calculated at $0.80 and is recorded as additional paid-in capital, and the related debt discount is being accreted into interest expense. 10,000 warrants were exercised on February 12, 2020, costing $110,000.

In connection with the Company’s acquisition of Green on January 1, 2019, the Company assumed $35,000 of 8.50% Fixed-to-Floating Rate Subordinated Notes (the “8.50% Fixed-to-Floating Notes”) that mature on December 15, 2026. The 8.50% Fixed-to-Floating Notes, which qualify as Tier 2 capital under the Federal Reserve’s capital guidelines, have an interest rate of 8.50% per annum during the fixed-rate period from date of issuance through December 15, 2021. Interest is payable semi-annually on each June 15 and December 15 through December 15, 2021.

During the floating rate period from December 15, 2021, to but excluding the maturity date or date of earlier redemption, the 8.50% Fixed-to-Floating Notes will bear interest at a rate per annum equal to three-month LIBOR for the related interest period plus 6.685%, payable quarterly on each March 15, June 15, September 15 and December 15. The 8.50% Fixed-to-Floating Notes are subordinated in right of payment to all of the Company's senior indebtedness and effectively subordinated to all existing and future debt and all other liabilities of the Bank. The Company may elect to redeem the 8.50% Fixed-to-Floating Notes (subject to regulatory approval), in whole or in part, on any early redemption date which is any interest payment date on or after December 15, 2021 at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. Other than on an early redemption date, the 8.50% Fixed-to-Floating Notes cannot be accelerated except in the event of bankruptcy or the occurrence of certain other events of insolvency or reorganization.

On November 8, 2019, the Company issued $75,000 in aggregate principal amount of 4.75% Fixed-to-Floating Rate Subordinated Notes (the "2019 Notes"). The 2019 Notes were issued in a private placement transaction to certain qualified institutional buyers and accredited and were registered under the Securities Act effective February 13, 2020. The 2019 Notes were issued under an indenture for Fixed-to-Floating Rate Subordinated Notes dated November 8, 2019, between Veritex Holdings, Inc., as issuer, and UMB Bank, N.A., as trustee. The Company may elect to redeem the 2019 Notes (subject to regulatory approval), in whole or in part, on any early redemption date which is any interest payment date on or after November 15, 2024 at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. The 2019 Notes, which qualify as Tier 2 capital under the Federal Reserve's capital guidelines, have an interest rate of 4.75% per annum during the fixed rate period from date of issuance through November 15, 2024. Interest is payable semi-annually on each May 15 and November 15 through November 15, 2024. The interest rate on the notes will vary beginning November 15, 2024, at a floating rate equal to the secured overnight financing rate, as determined quarterly on the determination date for the applicable interest period, plus 347 basis points.

On October 5, 2020, the Company completed the issuance and sale of $125,000 in aggregate principal amount of its 4.125% Fixed-to-Floating Rate Subordinated Debt due in 2030 (the “2020 Notes”). The 2020 Notes will bear interest: (i) from and including the date of issuance to, but excluding, October 15, 2025, at a rate of 4.125% per year and (ii) from and including October 15, 2025 to, but excluding, the maturity date (unless redeemed prior to such date), at a floating rate per year equal to the Benchmark (which is expected to be Three-Month Term Secured Overnight Funding Rate) plus 399.5 basis points. The Company has the right, subject to certain circumstances and the receipt of any required approval of the Federal Reserve Board, to redeem the 2020 Notes at the Company’s option, in whole or in part, on any interest payment date on or after October 15, 2025.The Company intends to use the net proceeds from the offering of 2020 Notes for general corporate purposes, including the potential repayment of outstanding indebtedness, and supporting capital levels of the Bank.

Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

The provision for income taxes is summarized as follows:


	Year Ended December 31,
	2020		2019		2018
Income tax expense (benefit):
Current	$	23,587	$	16,068	$	8,189
Deferred	(9,384)		9,053		2,707
	$	14,203	$	25,121	$	10,896

The table below reconciles income tax expense for the years ended December 31, 2020, 2019 and 2018 computed by applying the applicable U.S. federal statutory income tax rate, reconciled to the tax expense computed at the effective income tax rate:


	Year Ended December 31,
	2020			2019			2018
Federal incomes tax expense rate at 21% for December 31, 2020, 2019 and 2018	$	18,498		$	24,330		$	10,550
Bank-owned life insurance	(407)			(422)			(124)
Non-deductible transaction costs	—			308			727
Tax exempt interest income	(452)			(391)			(169)
Impact of IRS Settlement	—			(1,556)			—
Deferred tax true up	(1,181)			—			—
Deferred tax asset re-measurement due to the Tax Act	—			—			34
162(m) Disallowance	65			1,512			—
State Taxes	902			760			110
Excess benefit on share-based compensation	(1,435)			205			(248)
Net Operating Loss ("NOL") Carryback	(1,799)			—			—
Other	12			375			16
Total income tax expense	$	14,203		$	25,121		$	10,896
Effective tax rate	16.1		%	21.7		%	21.7		%

Deferred income taxes reflect the net tax effects of temporary differences between the recorded amounts of assets and liabilities for financial reporting purposes, and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows:


	December 31,
	2020		2019
Deferred tax assets:

Allowance for credit losses	$	24,324	$	6,232
Equity compensation	3,390		3,703
Purchase premium/loan discounts	2,945		9,347

Lease liability	3,276		2,960
Purchase securities	2,905		2,945
Other	3,901		3,930
Total deferred tax assets	40,741		29,117
Deferred tax liabilities:
Intangibles	11,911		13,527
Bank premises and equipment	4,036		4,811
ROU asset	3,124		2,773
Net unrealized gain on available for sale debt securities and derivative instruments	14,944		4,669
Other	2,063		1,904
Total deferred tax liabilities	36,078		27,684
Net deferred tax asset	$	4,663	$	1,433

Included within other assets in the accompanying consolidated balance sheet as of December 31, 2020 is a current tax receivable of $25,520 and a deferred tax asset of $4,663. Additionally, included within accounts payable and accrued expenses in the accompanying consolidated balance sheets as of December 31, 2020 is a $270 current state tax payable. Included in the accompanying consolidated balance sheets as of December 31, 2019 is a current tax receivable of $10,403 and a net deferred

tax asset of $1,433 in other assets. Additionally, included within accounts payable and accrued expenses in the accompanying consolidated balance sheets as of December 31, 2019 is a $780 current state tax payable.

The following table provides a rollforward of the Company's gross federal and state unrecognized tax benefits for the years ending December 31, 2020, 2019 and 2018. During the year ending December 31, 2020, the Company recorded an uncertain tax position liability for state nexus tax exposure of $549 in accounts payable and other liabilities in the accompanying consolidated balance sheets. During the year ending December 31, 2019, the Company recorded an uncertain tax position associated with the acquisition of Green and subsequently reached a settlement with the taxing authority.


	December 31
	2020		2019		2018
Unrecognized tax benefits at the beginning of the year:	$	—	$	—	$	—
Gross increases, related to tax positions taken in a prior period	281		2,155		—
Gross increases, related to tax positions taken in current period	268		—		—
Settlement with taxing authority	—		(2,155)		—
Unrecognized tax benefits at the end of the year	$	549	$	—	$	—

The Company has federal "NOL" carryforwards that are subject to a pre-tax limitation under Section 382 of approximately $3,055 as of December 31, 2020. The federal NOL carryforwards will expire with the 2031 tax year, if unused.

The Company files income tax returns in the U.S. federal jurisdiction and U.S. state jurisdictions. As of December 31, 2020, the Company is no longer subject to U.S. federal income tax examinations for tax years prior to 2017 and state income tax examinations for tax years prior to 2016.

Commitment and Contingencies

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Litigation

The Company may from time to time be involved in legal actions arising from normal business activities. Management believes that these actions in which the Company or any of its subsidiaries is a defendant are without merit or that the ultimate liability, if any, resulting from them will not materially affect the financial position or results of operations of the Company.

Qualified Affordable Housing Investments

The Company invests in certain qualified affordable housing projects. At December 31, 2020 and 2019, the balance of the investments for qualified affordable housing projects was $2,899 and $3,292, respectively. This balance is reflected in other assets on the consolidated balance sheets. The total unfunded commitment related to the investments in a qualified housing project totaled $362 and $1,091 at December 31, 2020 and 2019, respectively, which is reflected in accrued interest payable on the consolidated balance sheets. The Company expects to fulfill this commitment during the year ending 2034.

As of December 31, 2020, the expected future minimum commitment payments under the Company’s qualified affordable housing investments for each of the following five years were:


Year Ending December 31,	Future Minimum Payments
2021	$	132
2022	26
2023	26
2024	37
2025	51
Thereafter	90
Total	$	362

Refer to Note 12 "Advances from the FHLB", Note 14 "Borrowed Funds" and Note 18 "Off-Balance Sheet Loan Commitments" for further discussion on commitments.

Fair Value Disclosures

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures

The authoritative guidance for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact.

The authoritative guidance requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1 Inputs. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 Inputs. Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 investments consist primarily of obligations of U.S. government agencies, corporate bonds, municipal securities, mortgage-backed securities, collateralized mortgage obligations and asset-backed securities.

Level 3 Inputs. Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

Assets and liabilities measured at fair value on a recurring basis include the following:

Available for Sale Debt Securities: Debt securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For those debt securities classified as Level 2, the Company obtains fair value measurements from an

independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U. S. Treasury yield curve, live trading levels, trade execution data for similar securities, market consensus prepayments speeds, credit information and the bond’s terms and conditions, among other things.

Equity Security With a Readily Determinable Fair Value: This investment represents our Community Reinvestment Act security which is reported at fair value utilizing a Level 1 input which includes a quoted price in an active market for the identical asset.

PPP Loans: The fair value of PPP loans is based on commitments from investors or prevailing market prices.

Loans Held for Sale: The fair value of government guaranteed loans held-for-sale is based on commitments from investors or prevailing market prices.

Derivative Financial Instruments: The fair value of correspondent interest rate swaps, customer interest rate swaps, correspondent interest rate caps and collars and commercial loan interest rate floors are derived from pricing models based on past, present and projected future market conditions, quoted market prices of instruments with similar characteristics or discounted cash flows, classified in Level 2 of the fair value hierarchy.

The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2020 and 2019, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:


	December 31, 2020
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Financial Assets:
Available for sale debt securities	$	—	$	1,024,329	$	—	$	1,024,329
Equity securities with a readily determinable fair value	11,363		—		—		11,363
PPP Loans	—		358,042		—		358,042
Loans held for sale (1)	—		6,681		—		6,681
Interest rate swap designated as hedging instruments	—		17,543		—		17,543
Customer interest rate swaps not designated as hedging instruments	—		10,937		—		10,937
Correspondent interest rate caps and collars not designated as hedging instruments	—		1		—		1
Financial Liabilities:
Interest rate swap designated as hedging instruments	$	—	$	2,255	$	—	$	2,255
Correspondent interest rate caps and collars not designated as hedging instruments	—		11,666		—		11,666
Customer interest rate swaps not designated as hedging instruments	—		1		—		1

(1) Represents loans held for sale elected to be carried at fair value upon origination or acquisition.


	December 31, 2019
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Financial Assets:
Available for sale debt securities	$	—	$	964,365	$	—	$	964,365
Equity securities with a readily determinable fair value	11,122		—		—		11,122
Loans held for sale (1)	—		10,068		—		10,068
Correspondent interest rate swaps	—		105		—		105
Customer interest rate swaps	—		4,393		—		4,393
Correspondent interest rate caps and collars	—		11		—		11
Commercial loan interest rate floor	—		3,353		—		3,353
Financial Liabilities:
Correspondent interest rate swaps	$	—	$	4,736	$	—	$	4,736
Customer interest rate swaps	—		84		—		84
Customer interest rate caps and collars	—		11		—		11

(1) Represents loans held for sale elected to be carried at fair value upon origination or acquisition.

There were no transfers between Level 2 and Level 3 during the years ended December 31, 2020 and 2019.

Certain assets, including collateral dependent loans with an ACL, servicing asset with a valuation allowance and other real estate owned are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

Collateral Dependent Loans with an ACL: A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The ACL is measured by estimating the fair value of the loan's underlying collateral. For real estate loans, fair value of the loan’s collateral is determined by third-party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. Appraisals for collateral dependent loans with an ACL are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by the Company. Once reviewed, a member of the credit department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparisons to independent data sources such as recent market data or industry wide-statistics. On a periodic basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustments, if any, should be made to the appraisal value to arrive at fair value.

Other Real Estate Owned with a Valuation Allowance: The Company records other real estate owned at fair value less estimated costs to sell at the date of foreclosure. After foreclosure, other real estate owned is carried at the lower of the initial carrying amount (fair value less estimated costs to sell or lease) and the value determined by subsequent appraisals or internal valuations of the other real estate owned. The Company outsources the valuation of other real estate owned with material balances to third-party appraisers. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third-party appraisal for appropriateness and adjusts the value to consider applicable selling and closing costs.

Servicing Assets with a Valuation Allowance: The fair value of the servicing asset is estimated using discounted cash flows based on current market interest rates. A valuation allowance is recorded when the fair value is below the carrying amount of the asset.

The following table summarizes assets measured at fair value on a non-recurring basis as of December 31, 2020 and 2019, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:


	Fair Value
	Measurements Using
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
As of December 31, 2020
Assets:
Collateral dependent loans with an ACL	$	—	$	—	$	2,386	$	2,386
Servicing assets with a valuation allowance	—		—		2,975		2,975


As of December 31, 2019
Assets:
Impaired loans	$	—	$	—	$	4,504	$	4,504
Other real estate owned	—		—		5,995		5,995

At December 31, 2020, collateral dependent loans with an ACL had a recorded investment of $7,115, with $4,729 specific allowance for credit loss allocated. At December 31, 2019, impaired loans with an allowance had a recorded investment of $4,504, with $1,602 specific allowance for credit loss allocated.

At December 31, 2020, servicing assets of $3,531 had a valuation allowance totaling $556.

Other real estate owned consisted of four properties recorded with a fair value of approximately $5,995 at December 31, 2019.

There were no liabilities measured at fair value on a non-recurring basis as of December 31, 2020 and 2019.

Fair Value of Financial Instruments

The Company is required under current authoritative guidance to disclose the estimated fair value of its financial instrument assets and liabilities, including those subject to the requirements discussed above. For the Company, as for most financial institutions, substantially all of its assets and liabilities are considered financial instruments, as defined in such guidance. Many of the Company’s financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction.

The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop an estimate of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or valuation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values.

The methods and assumptions used by the Company in estimating fair values of financial instruments as disclosed herein in accordance with ASC Topic 825, Financial Instruments, other than for those measured at fair value on a recurring and nonrecurring basis discussed above, are as follows:

Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates their fair value.

Held-to-maturity debt securities: The fair values of these debt securities is determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs).

Loans held for investment: The fair value of loans held for investment, excluding previously presented collateral dependent loans with an ACL measured at fair value on a non-recurring basis, is estimated using a discounted cash flow analysis. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit, and prepayment risk of the loans. Loans are considered a Level 3 financial asset.

Loans held for sale Loans held for sale, include mortgage loans, which are carried at the lower of cost or estimated fair value. The fair value for the mortgage loans approximate their carrying value and these loans are considered Level 2 financial assets.

Accrued interest receivable: The carrying amounts of accrued interest approximate their fair values due to short-term maturity.

Bank-owned life insurance: The carrying amounts of bank-owned life insurance policies approximate their fair value.

Servicing Asset: Fair value is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset.

Equity securities without a readily determinable fair value: Certain equity securities are carried at cost as these securities did not have a readily determinable fair value. There were no observable price changes in orderly transactions for the identical or a similar investment of the same issuer as of December 31, 2020 and 2019.

FHLB and FRB stock: FHLB and FRB stock are carried at cost basis due to restrictions placed on the transferability of these investments. As a result, the fair value of these investments was not practicable to determine.

Deposits: The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The carrying amounts of variable-rate certificates of deposit (“CDs”) approximate their fair values at the reporting date. Fair values for fixed-rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered on CDs to a schedule of aggregated expected monthly maturities on time deposits.

Advances from FHLB: The fair value of advances maturing within 90 days approximates carrying value. Fair value of other advances is based on the Company’s current borrowing rate for similar arrangements.

Subordinated debentures and subordinated notes: The fair values are based upon prevailing rates on similar debt in the marketplace.

Securities sold under agreement to repurchase: The carrying amount of securities sold under agreements to repurchase is a reasonable estimate of fair value because these borrowings reprice at market rates generally daily.

Off-balance sheet instruments: Commitments to extend credit and standby letters of credit are generally priced at market at the time of funding and were not material to the Company’s consolidated financial statements.

The estimated fair values and carrying values of all financial instruments not measured at fair value on a recurring or non-recurring basis under current authoritative guidance as of December 31, 2020 and 2019 were as follows:


			Fair Value
	Carrying
	Amount		Level 1		Level 2		Level 3
December 31, 2020
Financial assets:
Cash and cash equivalents	$	230,825	$	—	$	230,825	$	—
Held-to-maturity debt securities	30,872		—		34,283		—
Loans held for sale(1)	14,733		—		14,733		—
Loans held for investment(2)	6,317,986		—		—		6,335,402
Accrued interest receivable	23,798		—		23,798		—
Bank-owned life insurance	82,855		—		82,855		—
Servicing asset	388		—		486		—
Equity securities without a readily determinable fair value	3,575		N/A		N/A		N/A
FHLB and FRB stock	71,236		N/A		N/A		N/A
Financial liabilities:
Deposits	$	6,512,846	$	—	$	6,608,849	$	—
Advances from FHLB	777,718		—		782,321		—
Accrued interest payable	2,665		—		2,665		—
Subordinated debentures and subordinated notes	262,778		—		262,778		—
Securities sold under agreement to repurchase	2,225		—		2,199		—

December 31, 2019
Financial assets:
Cash and cash equivalents	$	251,550	$	—	$	251,550	$	—
Held-to-maturity debt securities	32,965		—		34,810		—
Loans held for sale(1)	4,012		—		4,012		—
Loans held for investment(2)	5,921,205		—		—		5,899,945
Accrued interest receivable	19,508		—		19,508		—
Bank-owned life insurance	80,915		—		80,915		—
Servicing asset	3,113		—		3,113		—
Equity securities without readily determinable fair value	3,575		N/A		N/A		N/A
FHLB and FRB stock	68,348		N/A		N/A		N/A

Financial liabilities:
Deposits	$	5,894,350	$	—	$	5,692,217	$	—
Advances from FHLB	677,870		—		708,692		—
Accrued interest payable	5,893		—		5,893		—
Subordinated debentures and subordinated notes	145,571		—		145,571		—
Securities sold under agreement to repurchase	2,353		—		2,353		—

(1) Loans held for sale primarily represent mortgage loans held for sale that are carried at lower of cost or market.

(2) Loans held for investment includes MW and is carried at amortized cost.

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

+ References + Details

Off-Balance Sheet Loan Commitments

12 Months Ended

Dec. 31, 2020

Off-Balance Sheet Loan Commitments

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, mortgage warehouse commitments and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets.

The Company’s exposure to credit loss in the event of nonperformance by the other party to a financial instrument for commitments to extend credit, mortgage warehouse commitments and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

The following table sets forth the approximate amounts of these financial instruments as of December 31, 2020 and 2019:


	December 31,
	2020		2019
Commitments to extend credit	$	2,743,571	$	1,602,891
Mortgage warehouse commitments	354,603		347,459
Standby and commercial letters of credit	44,427		27,196
	$	3,142,601	$	1,977,546

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Management evaluates each customer’s creditworthiness on a case-by-case basis and substantially all of the Company’s commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of future loan funding. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the borrower.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company’s policy for obtaining collateral and the nature of such collateral is essentially the same as that involved in making commitments to extend credit.

Mortgage warehouse commitments are unconditionally cancellable and represent the unused capacity on mortgage warehouse facilities the Company has approved. The Company reserves the right to refuse to buy any mortgage loans offered for sale by a customer, for any reason, at the Company’s sole and absolute discretion.

The table below presents the activity in the allowance for unfunded commitment credit losses related to those financial instruments discussed above. This allowance is recorded in accounts payable and other liabilities on the Consolidated Balance Sheets:


	December 31,
	2020		2019
Beginning balance for allowance for credit losses on unfunded commitments	$	878	$	878
Impact of CECL adoption	840		—
Provision for credit losses on unfunded commitments	9,029		—
Ending balance of allowance for credit losses on unfunded commitments	$	10,747	$	878

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

The Company primarily uses derivatives to manage exposure to market risk, including interest rate risk and credit risk and to assist customers with their risk management objectives. Management will designate certain derivatives as hedging instruments in a qualifying hedge accounting relationship. The Company’s remaining derivatives consist of derivatives held for customer accommodation or other purposes.

The fair value of derivative positions outstanding is included in other assets and accounts payable and other liabilities on the accompanying consolidated balance sheets and in the net change in each of these financial statement line items in the accompanying Consolidated Statements of Cash Flows. For derivatives not designated as hedging instruments, swap fee income and gains and losses due to changes in fair value are included in noninterest income and the operating section of the Consolidated Statement of Cash Flows. For derivatives designated as hedging instruments, the entire change in the fair value related to the derivative instrument is recognized as a component of other comprehensive income and subsequently reclassified into interest income when the forecasted transaction affects income. The notional amounts and estimated fair values as of December 31, 2020 and December 31, 2019 were as shown in the table below.


	December 31, 2020						December 31, 2019
			Estimated Fair Value						Estimated Fair Value
	Notional Amount		Asset Derivative		Liability Derivative		Notional Amount		Asset Derivative		Liability Derivative
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on borrowing advances	$	500,000	$	17,543	$	—	$	—	$	—	$	—
Interest rate swap on money market deposit account payments	250,000		—		2,255		—		—		—
Commercial loan interest rate floor	—		—		—		275,000		3,353		—
Total derivatives designated as hedging instruments	$	750,000	$	17,543	$	2,255	275,000		3,353		—

Derivatives not designated as hedging instruments:
Financial institution counterparty:
Interest rate swaps	$	303,918	$	—	$	11,666	$	222,394	$	105	$	4,736
Interest rate caps and collars	41,916		1		—		90,093		11		—
Commercial customer counterparty:
Interest rate swaps	303,918		10,937		—		222,394		4,393		84
Interest rate caps and collars	41,916		—		1		90,093		—		11
Total derivatives not designated as hedging instruments	$	691,668	$	10,938	$	11,667	$	624,974	$	4,509	$	4,831
Offsetting derivative assets/liabilities			1		1				(2,895)		(2,895)
Total derivatives	$	1,441,668	$	28,482	$	13,923	$	899,974	$	4,967	$	1,936

Pre-tax gain (loss) included in the Consolidated Statements of Income and related to derivative instruments for the years ended December 31, 2020 and 2019 was as follows:


	For the Year Ended December 31, 2020						For the Year Ended December 31, 2019
	Net gain (loss) recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location of gain (loss) reclassified from accumulated other comprehensive income into income		Net gain (loss) recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location of gain (loss) reclassified from accumulated other comprehensive income into income
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on borrowing advances	$	13,859	$	—	Interest Expense		$	—	$	—	Interest Expense
Interest rate swap on money market deposit account payments	(1,781)		(605)		Interest Expense		—		—		Interest Expense
Commercial loan interest rate floors	(813)		1,937		Interest Income		1,497		(808)		Interest Income
Total	$	11,265	$	1,332			$	1,497	$	(808)


					Net Gain recognized in other noninterest income						Loss recognized in other noninterest income
Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars					$	2,481					$	550

Cash Flow Hedges

In March 2020, the Company entered into an interest rate swap for a notional amount of $500,000 to hedge the variability of cash flow payments attributable to changes in interest rates in regards to forecasted issuances of three-month term debt arrangements every three months from March 2022 through March 2032. These forecasted borrowings can be sourced from an FHLB advance, repurchase agreement, brokered certificate of deposit or some combination of the foregoing.

In March 2020, the Company entered into an interest rate swap for a notional amount of $250,000 to hedge the variability of cash flow payments attributable to changes in interest rates in regards to forecasted money market account borrowings from March 2020 through March 2025.

In May 2019, the Company entered into a $275,000 notional interest rate floor for commercial loans with a two-year term. The interest rate floor had a purchased floor strike of 2.43%. In February 2020, the Company terminated this interest rate floor. The gain resulting from the termination of the interest rate floor will remain in other comprehensive income (loss) and will be accreted into earnings over the remaining period of the former hedging relationship unless the forecasted transaction becomes probable of not occurring.

Interest Rate Swap, Floor, Cap and Collar Agreements Not Designated as Hedging Derivatives

In order to accommodate the borrowing needs of certain commercial customers, the Company has entered into interest rate swap or cap agreements with those customers. These interest rate derivative contracts effectively allow the Company’s customers to convert a variable rate loan into a fixed rate loan. In order to offset the exposure and manage interest rate risk, at the time an agreement was entered into with a customer, the Company entered into an interest rate swap or cap with a correspondent bank counterparty with offsetting terms. These derivative instruments are not designated as accounting hedges and changes in the net fair value are recognized in noninterest income or expense. Because the Company acts as an intermediary for its customers, changes in the fair value of the underlying derivative contracts substantially offset each other and do not have a material impact on the Company’s results of operations. The fair value amounts are included in other assets and other liabilities.

The following is a summary of the interest rate swaps outstanding as of December 31, 2020 and December 31, 2019.


	December 31, 2020
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating	$	303,918	3.14% - 8.470%	LIBOR 1 month + —% - 5.00% PRIME H15 - 25	Wtd. Avg. 4.1 years	$	(11,666)
Interest rate caps and collars	$	41,916	2.500% / 3.000%	LIBOR 1 month + —%	Wtd. Avg. 1.6 years	$	1

Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	303,918	3.14% - 8.470%	LIBOR 1 month + —% - 5.00% PRIME H15 - 25	Wtd. Avg. 4.1 years	$	10,937
Interest rate caps and collars	$	41,916	3.000% / 5.000%	LIBOR 1 month + —% - 2.5%	Wtd. Avg. 1.6 years	$	(1)


	December 31, 2019
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating	$	222,394	2.944% - 8.470%	LIBOR 1 month + —% - 5.00% PRIME H15 - 25	Wtd. Avg. 3.3 years	$	(4,632)
Interest rate caps and collars	$	90,093	2.430% / 5.800%	LIBOR 1 month + —% - 3.75%	Wtd. Avg. 1.5 years	$	11

Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	222,394	2.944% - 8.470%	LIBOR 1 month + —% - 5.00% PRIME H15 - 25	Wtd. Avg. 3.3 years	$	4,309
Interest rate caps and collars	$	90,093	3.000% / 5.800%	LIBOR 1 month + — - 3.75%	Wtd. Avg. 1.5 years	$	(11)

Employee Benefits	12 Months Ended
Employee Benefits	Dec. 31, 2020
Retirement Benefits [Abstract]
Employee Benefits	Employee Benefits Defined Contribution Plan The Company maintains a retirement savings 401(k) profit sharing plan (the “Plan”) in which substantially all employees may participate. The Plan allows employees to make discretionary “before tax” contributions through salary reductions under section 401(k) of the Internal Revenue Code. The Company may make a discretionary match of employees’ contributions based on a percentage of salary deferrals and certain discretionary profit sharing contributions. For the year ended December 31, 2020 and 2019, the company made matching contributions of $3,210 and $2,896, respectively. Employee Stock Ownership Plan ("ESOP") Effective January 1, 2012, the Company adopted the ESOP, which covered substantially all employees (subject to certain exclusions). The Company ceased making new contributions to the ESOP effective January 1, 2019 and approved an amendment to terminate the ESOP effective on June 30, 2019. During the year ended December 31, 2020, the Company received an IRS determination letter approving a liquidation of the ESOP. As of December 31, 2020, the Company had not yet liquidated the ESOP assets. There was no compensation expense attributed to the ESOP for the years ended December 31, 2020 and 2019. Compensation expense attributed to ESOP contributions recorded in the accompanying consolidated statements of income for the year ended December 31, 2018 was approximately $863.

Stock and Incentive Plans

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock and Incentive Plans

2010 Stock Option and Equity Incentive Plan

In 2010, the Company adopted the 2010 Stock Option and Equity Incentive Plan (the “2010 Incentive Plan”), which the Company’s shareholders approved in 2011. The maximum number of shares of common stock that may be issued pursuant to grants or options under the 2010 Incentive Plan is 1,000,000. The 2010 Incentive Plan is administered by the Board and provides for both the direct award of stock and the grant of stock options to eligible directors, officers, employees and outside consultants of the Company or its affiliates as defined in the 2010 Incentive Plan. The Company may grant either incentive stock options or nonqualified stock options as directed in the 2010 Incentive Plan.

The Board authorized grants of equity awards under the 2010 Incentive Plan consisting of 100,000 shares of direct stock awards (restricted shares) and 900,000 shares of stock options, of which 500,000 shares are or were performance-based stock options. Options were generally granted with an exercise price equal to the market price of the Company’s stock as of the date of the grant. In general, the terms of awards varied depending on whether a participant was a shareholder owning more than 10% of the total combined voting power of all classes of Company stock (a “controlling participant”). Options granted to non-controlling participants generally vested after 5 years of continuous service, with 10-year contractual terms, and forfeiture of unexercised options upon termination of employment with the Company. Other grant terms varied for controlling participants. Restricted share awards generally vested after 4 years of continuous service. The terms of the 2010 Incentive Plan provide that all unearned non-performance options and restricted shares become immediately exercisable and fully vested upon a change in control.

During the years ending December 31, 2020, 2019 and 2018, the Company did not award any restricted stock units, non-performance based stock options or performance-based stock options or other awards under the 2010 Incentive Plan.

Stock based compensation expense is measured based upon the fair market value of the award at the grant date and is recognized ratably over the period during which the shares are earned (the requisite service period). For the year ended December 31, 2020, there was no stock compensation expense related to the 2010 Incentive Plan. For the years ended December 31, 2019 and 2018, approximately $3 and $27 of stock compensation expense related to the 2010 Incentive Plan, respectively, was recognized in the accompanying consolidated statements of income.

A summary of the status of options granted under the 2010 Incentive Plan at December 31, 2020, 2019 and 2018 and changes during the years then ended is presented below:


	2010 Incentive Plan
	Nonperformance-based stock options
	Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2017	305,000	$	10.16	3.59 years



Exercised	(30,000)	10.61
Outstanding at December 31, 2018	275,000	$	10.12	2.39 years



Exercised	(17,500)	10.24
Outstanding at December 31, 2019	257,500	$	10.28	1.37 years



Exercised	(237,500)	10.12
Outstanding and exercisable at December 31, 2020	20,000	$	10.09	1.06 years	$	374

As of December 31, 2020 and 2019, there was no unrecognized stock compensation expense related to non-performance based stock options. As of December 31, 2018, there was approximately $3 of unrecognized compensation expense related to non-performance-based stock options.

A summary of the status of the restricted stock units under the 2010 Incentive Plan as of December 31, 2020, 2019, and 2018 and changes during the years is presented below:


	2010 Incentive Plan
	Nonperformance-based restricted stock units
	Shares Underlying Options	Weighted Average Exercise Price
Outstanding at December 31, 2017	24,250	$	13.19

Forfeited	(500)	10.85
Vested into shares	(23,750)	12.14
Outstanding at December 31, 2018	—	$	—



Outstanding at December 31, 2019	—	—



Outstanding at December 31, 2020	—	$	—

As of December 31, 2020, 2019, and 2018, there was no remaining unrecognized compensation expense related to non-vested restricted stock units.

A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2010 Incentive Plan as of December 31, 2020, 2019 and 2018 is presented below:


	Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31,
	2020		2019		2018
Nonperformance-based stock options exercised	$	6,579	$	454	$	803
Nonperformance-based restricted stock units vested	—		—		713

2019 Amended Plan and Green Acquired Omnibus Plans

2020 Grants of Restricted Stock Units

In the year ended December 31, 2020, the Company granted non-performance-based and performance-based restricted stock units (“RSUs”) under the 2019 Amended and Restated Omnibus Incentive Plan, which amended and restated the 2014 Omnibus Incentive Plan (“2019 Amended Plan”), and the Veritex (Green) 2014 Omnibus Equity Incentive Plan (“Veritex (Green) 2014 Plan”). The majority of the non-performance-based RSUs granted to employees during the year ended December 31, 2020 vest after three or five equal installments on each anniversary of the grant date. There were also non-performance-based restricted stock units granted with no vesting conditions on the grant date.

The performance-based RSUs granted in January 2020 are subject to “cliff” vesting, with a vesting date of January 1, 2023, based on a performance period starting on December 31, 2019 and ending on December 31, 2022. The vesting percentage is determined based on the Company’s total shareholder return (“TSR”) relative to the TSR of 15 peer companies (“Peer Group”) over the performance period. Below is a table showing the range of vesting percentages for the performance-based RSUs based on the Company’s TSR percentile rank.


	Vesting %
Below the 24.9th percentile of Peer Group TSR	—	%
Within the 25th to 49.9th percentile of Peer Group TSR	50	%
Within the 50th to 74.9th percentile of Peer Group TSR	100	%
At or above the 75th percentile of Peer Group TSR	150	%

A Monte Carlo simulation was used to estimate the fair value of performance-based RSUs on the grant date that include a market condition based on the Company’s TSR relative to its Peer Group, which determines the eligible number of RSUs to vest.

2020 Grant of Stock Options

In January 2020, the Company granted non-performance-based options under the 2019 Amended Plan and the Veritex (Green) 2014 Plan, which vest over three equal installments on each anniversary of the grant date.

The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions used for the grants:

For the Year Ended December 31,

2020

2019

2018

Dividend yield

2.33% to 5.14%

1.73% to 2.01%

—%

Expected life

5.00 to 6.51 years

4.52 to 7.51 years

5.00 to 7.50 years

Expected volatility

27.49% to 42.37%

28.85% to 29.65%

27.87% to 37.55%

Risk-free interest rate

0.36% to 1.76%

1.53% to 2.51%

1.06% to 2.94%

The expected life is based on the amount of time that options being valued are expected to remain outstanding. The expected volatility is based on historical volatility of the Company. The dividend yield assumption is based on the Company’s dividend history. The risk-free interest rates are based upon yields of U.S. Treasury issues with a term equal to the expected life of the option being valued.

Stock Compensation Expense and Liability Award Compensation Expense

Stock compensation expense for equity awards under the 2019 Amended Plan was approximately $6,080 and $3,044 for the years ended December 31, 2020, 2019, respectively.

Stock compensation expense for options and restricted stock unit awards granted under the Veritex (Green) 2014 Plan was approximately $1,903 and $1,525 for the year ended December 31, 2020 and 2019, respectively.

There was no compensation expense for liability-classified awards sunder the 2019 Amended Plan during the year ended December 31, 2020. There was $1,403 of compensation expense for liability-classified awards under the 2019 Amended Plan during the year December 31, 2019.

On May 22, 2019, the shareholders of the Company approved a proposal to approve the 2019 Amended and Restated Omnibus Incentive Plan, which amended and restated our 2014 Omnibus Incentive Plan (the "Equity Plan"). The Equity Plan has two complementary purposes: (i) to attract and retain talented individuals to serve as officers, employees, directors and service providers; and (ii) to increase shareholder value by aligning the interests of our officers, employees, directors and service providers with the long-term interests of our company and our shareholders. The Equity Plan offers eligible officers, employees, directors and service providers the opportunity to acquire shares of our common stock, or receive monetary payments, on the potentially favorable terms provided by the Equity Plan. The Equity Plan is administered by the Compensation Committee of the Board. The maximum number of shares of the Company’s common stock that may be issued pursuant to grants or options under the Equity Plan is 1,500,000.

2019 Amended Plan

A summary of the status of the Company’s stock options under the 2019 Amended Plan as of December 31, 2020, 2019 and 2018, and changes during the years then ended, is as follows:


	2019 Amended Plan
	Nonperformance-based stock options
	Equity Awards						Liability Awards
	Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value		Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2017	330,723	$	22.71	8.86 years			—	—		—
Granted	137,576	28.04					—	—
Forfeited	(4,083)	27.59					—	—

Exercised	(14,696)	15.29					—	—
Outstanding at December 31, 2018	449,520	$	24.47	8.24 years			—	$	—	—
Granted	200,561	22.72					253,633	21.38
Conversion to equity awards	253,633	21.38					(253,633)	21.38
Forfeited	(41,336)	25.51					—	—

Exercised	(12,610)	15.42					—	—
Outstanding at December 31, 2019	849,768	$	23.61	8.24 years			—	—		—
Granted	185,025	26.73					—	—

Forfeited	(25,053)	27.37					—	—

Exercised	(33,939)	19.10					—	—
Outstanding at December 31, 2020	975,801	$	24.26	7.45 years	$	2,422	—	—		—	$	—
Options exercisable at December 31, 2020	491,704	$	24.25	6.40 years	$	1,199	—	—		—	$	—
Weighted average fair value of options granted during the period		$	6.37					$	—

As of December 31, 2020, 2019 and 2018 there was $2,470, $2,948 and $2,103 of total unrecognized compensation expense related to stock options awarded under the 2019 Amended Plan, respectively. As of December 31, 2020, there was no unrecognized compensation expense related to liability options awarded under the 2019 Amended Plan. The unrecognized compensation expense at December 31, 2020 is expected to be recognized over the remaining weighted average requisite service period of 2.65 years.

A summary of the status of the Company’s non-performance based restricted stock units under the 2019 Amended Plan as of December 31, 2020, 2019 and 2018, and changes during the year then ended is as follows:


	2019 Amended Plan
	Nonperformance-based restricted stock units
	Equity Awards			Liability Awards
	Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2017	150,722	$	13.29	—	$	—
Granted	60,650	29.27		—	—
Vested into shares	(73,988)	24.44		—	—
Forfeited	(3,929)	26.29		—	—
Outstanding at December 31, 2018	133,455	$	19.67	—	$	—
Granted	127,459	22.44		165,739	21.38
Conversion to equity awards	165,739	21.38		(165,739)	21.38
Vested into shares	(250,965)	22.29		—	—

Outstanding at December 31, 2019	175,688	$	21.65	—	$	—
Granted	360,400	20.38		—	—

Vested into shares	(93,377)	24.73		—	—
Forfeited	(1,579)	29.13		—	—
Outstanding at December 31, 2020	441,132	$	20.39	—	$	—

A summary of the status of the Company’s performance based restricted stock units under the 2019 Amended Plan as of December 31, 2020, 2019 and 2018, and changes during the years then ended is as follows:


	2019 Amended Plan
	Performance-based restricted stock units
	Equity Awards			Liability Awards
	Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2017	53,594	$	17.68	—	$	—
Granted	40,269	27.59		—	—
Vested into shares	(28,109)	18.69		—	—
Forfeited	(1,766)	27.59		—	—
Outstanding at December 31, 2018	63,988	$	21.28	—	$	—
Granted	38,746	22.53		32,249	21.38
Conversion to equity awards	32,249	21.38		(32,249)	21.38
Vested into shares	(51,284)	25.31		—	—
Forfeited	(19,972)	21.38		—	—
Outstanding at December 31, 2019	63,727	$	22.76	—	$	—
Granted	39,398	25.94		—	—

Vested into shares	(1,841)	19.69		—	—
Forfeited	(1,089)	19.69		—	—
Outstanding at December 31, 2020	100,195	$	23.20	—	$	—

As of December 31, 2020, 2019, and 2018 there was $8,222, $4,329 and $3,430 of total unrecognized compensation expense related to restricted stock units awarded under the 2019 Amended Plan, respectively. As of December 31, 2020, there was no unrecognized compensation related to liability restricted stock units awarded under the 2019 Amended Plan. The unrecognized compensation expense at December 31, 2020 is expected to be recognized over the remaining weighted average requisite service period of 2.61 years.

A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2019 Amended Plan as of December 31, 2020, 2019 and 2018 is presented below:


	Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31,
	2020		2019	2018
Nonperformance-based stock options exercised	$	954	334	383
Nonperformance-based restricted stock units vested	2,529		6,113	2,128
Performance-based restricted stock units vested	36		1,089	745

Veritex (Green) 2014 Plan

A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of December 31, 2020 and 2019 changes during the years then ended is as follows:


	Veritex (Green) 2014 Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2019	—	$	—
Converted in acquisition of Green	304,778	15.41
Granted	211,793	21.38
Forfeited	(12,673)	13.17

Exercised	(116,929)	13.60
Outstanding at December 31, 2019	386,969	19.30
Granted	31,075	29.13
Forfeited	(30,711)	20.92
Exercised	(35,333)	19.42
Outstanding at December 31, 2020	352,000	$	19.99	6.97 years	$2,124
Options exercisable at December 31, 2020	209,844	$	17.89	6.11 years	$1,642
Weighted average fair value of options granted during the period		$	9.56

As of December 31, 2020 and 2019, there was $626 and $1,062, respectively, of total unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan. The unrecognized compensation expense at December 31, 2020 is expected to be recognized over the remaining weighted average requisite service period of 2.13 years.

A summary of the status of the Company’s non-performance-based restricted stock units under the Veritex (Green) 2014 Plan as of December 31, 2020 and 2019 and changes during the years then ended, is as follows:


	Veritex (Green) 2014 Plan
	Non-performance Based Restricted Stock Units
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2019	—	$	—
Granted	116,250	21.38


Outstanding at December 31, 2019	116,250	21.38
Granted	93,918	21.36
Vested into shares	(38,744)	21.38
Forfeited	(15,237)	23.62
Outstanding at December 31, 2020	156,187	$	22.64

A summary of the status of the Company’s performance-based restricted stock units under the Veritex (Green) 2014 Plan as of December 31, 2020 and 2019 and changes during the years then ended, is as follows:


	Veritex (Green) 2014 Plan
	Performance Based Restricted Stock Units
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2019	—	$	—
Granted	26,145	21.38

Forfeited	(825)	21.38
Outstanding at December 31, 2019	25,320	$	21.38
Granted	8,531	25.94

Forfeited	(3,123)	19.69
Outstanding at December 31, 2020	30,728	$	21.43

As of December 31, 2020 and 2019, there was $2,484 and $1,991, respectively, of total unrecognized compensation related to outstanding restricted stock units awarded under the Veritex (Green) 2014 Plan to be recognized over a remaining weighted average requisite service period of 2.02 years.

A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the Veritex (Green) 2014 Plan during the year ended December 31, 2020 and 2019 is presented below:


	Fair Value of Options Exercised or Restricted Stock Units Vested in the year ended December 31,
	2020		2019
Non-performance-based stock options exercised	$	1,021	$	3,054
Non-performance-based restricted stock units vested	828		—

Green Bancorp Inc. 2010 Stock Option Plan and Green Bancorp Inc. 2006 Stock Option Plan

In addition to the Veritex (Green) 2014 Plan discussed earlier in this Note, the Company assumed two stock and incentive plans in the Green acquisition, the Green Bancorp Inc. 2010 Stock Option Plan (“Green 2010 Plan”) and the Green Bancorp Inc. 2006 Stock Option Plan (“Green 2006 Plan”).

A summary of the status of the Company’s non-performance-based restricted stock units under the Green 2010 Plan as of December 31, 2020 and 2019 and changes during the years then ended, is as follows:


	Green 2010 Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2019	—	$	—
Converted in acquisition of Green	768,628	10.73

Forfeited	(6,241)	13.69

Exercised	(190,652)	10.93
Outstanding at December 31, 2019	571,735	10.64


Exercised	(440,652)	10.35
Outstanding and exercisable at December 31, 2020	131,083	$	11.60	4.90 years	$1,843

As of December 31, 2020 and 2019, there was no unrecognized compensation expense related to options awarded under the Green 2010 Plan.

A summary of the fair value of the Company’s stock options exercised under the Green 2010 Plan during the year ended December 31, 2020 and 2019 is presented below:


	Fair Value of Options Exercised in the year ended December 31,
	2020		2019
Non-performance-based stock options exercised	$	12,231	$	5,554

A summary of the status of the Company’s non-performance-based restricted stock units under the Green 2006 Plan as of December 31, 2020 and 2019 and changes during the years then ended, is as follows:


	Green 2006 Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2019	—	$	—
Converted in acquisition of Green	11,850	10.45



Exercised	(11,850)	10.45
Outstanding at December 31, 2019 and 2020	—	—

As of December 31, 2020 and 2019, there was no unrecognized compensation expense related to options awarded under the Green 2006 Plan.

A summary of the fair value of the Company’s stock options exercised under the Green 2006 Plan during the year ended December 31, 2020 and 2019 is presented below:


	Fair Value of Options Exercised in the year ended December 31,
	2020		2019
Non-performance-based stock options exercised	$	—	$	345

Significant Concentrations of Credit Risk	12 Months Ended
Significant Concentrations of Credit Risk	Dec. 31, 2020
Risks and Uncertainties [Abstract]
Significant Concentrations of Credit Risk	Significant Concentrations of Credit Risk Most of the Company’s business activity is with customers located within the Dallas-Fort Worth metroplex and Houston metropolitan area. Such customers are normally also depositors of the Company. The distribution of commitments to extend credit approximates the distribution of loans outstanding. The Company has a diversified loan portfolio, however a significant portion of the Company's loans are collateralized by real estate. Repayment of these loans is in part dependent upon the economic conditions in the market area. The contractual amounts of credit related financial instruments such as commitments to extend credit, MW commitments, credit card arrangements, and letters of credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless.

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In the ordinary course of business, the Company has and expects to continue to have transactions, including borrowings, with its employees, officers, directors and their affiliates. These loans are on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other unaffiliated persons and do not involve more than normal risk of collectability. The aggregate amounts of such loans were approximately $34,944 and $70,113 as of December 31, 2020 and 2019, respectively. During the year ended December 31, 2020, new advances of approximately $12,477 were made to related parties with approximately $19,991 principal payments received. During the year ended December 31, 2019, new advances of approximately $42,163 were made to related parties with approximately $42,398 principal payments received. There were $13,191 and $17,180 in unfunded commitments to related parties as of December 31, 2020 and 2019, respectively. At December 31, 2020, there were no loans to employees, officers, directors or their affiliates that were considered non-performing or potentially problem loans. Deposits received from related parties as of December 31, 2020 and 2019 totaled approximately $506,068 and $70,986, respectively.

Capital Requirements and Restrictions on Retained Earnings

12 Months Ended

Dec. 31, 2020

Capital Requirements and Restrictions on Retained Earnings

Under applicable U.S. banking laws, there are legal restrictions limiting the amount of dividends the Company can declare. Approval of the regulatory authorities is required if, among other things, the effect of the dividends declared would cause regulatory capital of the Company to fall below specified minimum levels.

The Company on a consolidated basis and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements triggers certain mandatory and may lead to additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and, if the Bank were not eligible for or did not opt into the Community Bank Leverage Ratio (“CBLR”) framework, certain off-balance sheet items as calculated under regulatory accounting practices. If the Company were not eligible for or did not opt into the CBLR framework, its capital amounts and classification would also be subject to qualitative judgments by the regulators about components of capital, risk weightings of assets, and other factors.

Under the Economic Growth, Regulatory Reform, and Consumer Protection Act (“EGRRCPA”) and implementing regulations of the federal banking agencies, certain banking organizations with less than $10 billion in assets may elect to satisfy a single CBLR of Tier 1 capital to average total consolidated assets in lieu of the generally applicable capital requirements of the capital rules implementing Basel III. We have elected to use the CBLR framework. Accordingly, if we and the Bank continue to meet all requirements under this framework, we and the Bank will not be required to report or calculate risk-based capital, and the Bank will be considered to have met the well-capitalized ratio requirements under Prompt Corrective Action (“PCA”) regulations. The federal banking agencies have finalized the CBLR minimum at 9% and we and the Bank exceed this standard. The U.S. Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), enacted March 27, 2020, temporarily reduced the CBLR to 8% until the earlier of December 31, 2020 or the expiration of the national emergency declaration, and rules issued by the federal banking agencies provide a graduated transition back to the 9% threshold by January 1, 2022.

If we were not eligible for or did not opt into the CBLR framework, we would be subject to other quantitative measures established by regulation to ensure capital adequacy. These generally applicable capital requirements require a banking organization that does not operate under the CBLR framework to maintain minimum amounts and ratios (set forth in the table below) of total Tier 1, and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Additionally, to be categorized as “well capitalized,” a banking organization that does not operate under the CBLR framework is required to maintain minimum total risk-based common equity Tier 1, Tier 1, and total capital ratios and Tier 1 leverage ratios as set forth in the table below.

As of December 31, 2020 and December 31, 2019, the Company’s and the Bank’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” if the Company and the Bank were not operating under the CBLR framework. There are no conditions or events since December 31, 2020 that management believes have changed the Company’s category.

In the first quarter of 2020, U.S. federal regulatory authorities issued an interim final rule that provides banking organizations that adopt CECL during the 2020 calendar year with the option to delay for two years the estimated impact of CECL on regulatory capital relative to regulatory capital determined under the prior incurred loss methodology, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during the initial two-year delay (i.e., a five-year transition in total). In connection with our adoption of CECL on January 1, 2020, the Company elected to utilize the five-year CECL transition. As a result, the effects of CECL on the Company's and the Bank’s regulatory capital will be delayed through the year 2021, after which the effects will be phased-in over a three-year period from January 1, 2022 through December 31, 2024.

A comparison of the Company’s and Bank’s actual capital amounts and ratios to capital amounts and ratios that would be required if the Company and Bank were not operating under the CBLR framework is presented in the following table:


	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
As of December 31, 2020
Total capital (to risk-weighted assets)
Company	$	1,099,031	13.57	%	$	647,918	8.0	%	n/a		n/a
Bank	968,481		11.96		647,813		8.0		$	809,767	10.0	%
Tier 1 capital (to risk-weighted assets)
Company	782,487		9.66		486,017		6.0		n/a		n/a
Bank	884,471		10.92		485,973		6.0		647,964		8.0
Common equity tier 1 (to risk-weighted assets)
Company	753,261		9.30		364,481		4.5		n/a		n/a
Bank	884,471		10.92		364,480		4.5		526,471		6.5
Tier 1 capital (to average assets)
Company	782,487		9.43		331,914		4.0		n/a		n/a
Bank	884,471		10.66		331,884		4.0		414,855		5.0
As of December 31, 2019
Total capital (to risk-weighted assets)
Company	$	917,939	13.10	%	$	560,573	8.0	%	n/a		n/a
Bank	870,838		12.44		560,024		8.0		$	700,031	10.0	%
Tier 1 capital (to risk-weighted assets)
Company	771,679		11.02		420,152		6.0		n/a		n/a
Bank	840,126		12.00		420,063		6.0		560,084		8.0
Common equity tier 1 (to risk-weighted assets)
Company	742,675		10.60		315,287		4.5		n/a		n/a
Bank	840,126		12.00		315,047		4.5		455,068		6.5
Tier 1 capital (to average assets)
Company	771,679		10.17		303,512		4.0		n/a		n/a
Bank	840,126		11.07		303,569		4.0		379,461		5.0

Dividend Restrictions

Dividends paid by the Bank are subject to certain restrictions imposed by regulatory agencies. Capital requirements further limit the amount of dividends that may be paid by the Bank. The Bank is subject to limitations on dividend payouts if, among other things, it does not have a capital conservation buffer of 2.5% or more. The Bank had a capital conservation buffer of 3.95% as of December 31, 2020. Dividends of $65,000 and $56,750 were paid by the Bank to the Holdco during the years ended December 31, 2020 and 2019, respectively. Dividends of $34,057, or $0.17 per outstanding share on the applicable record date, were paid by the Company during the year ended December 31, 2020. Dividends of $26,796, or $0.125 per outstanding share on the applicable record date, were paid by the Company during the year ended December 31, 2019.

Condensed Financial Information Disclosure [Abstract]

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

+ References

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

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958577-112826

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958574-112826

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2020

Parent Company Only Financial Statements

The following balance sheets, statements of income and statements of cash flows for Veritex Holdings, Inc. should be read in conjunction with the consolidated financial statements and the notes thereto.

Balance Sheet


	December 31,
	2020		2019
Assets
Cash and cash equivalents	$	129,969	$	45,563
Investment in subsidiaries	1,335,603		1,289,273
Other assets	4,638		2,780
Total assets	$	1,470,210	$	1,337,616
Liabilities and Stockholders’ Equity
Other liabilities	$	4,056	$	1,248
Other borrowings	262,778		145,571
Total liabilities	$	266,834	$	146,819
Stockholders’ equity

Common stock	$	555	$	511
Additional paid-in capital	1,126,437		1,117,879
Retained earnings	172,232		147,911

Accumulated other comprehensive income	56,225		19,061
Treasury stock	(152,073)		(94,565)
Total stockholders’ equity	1,203,376		1,190,797
Total liabilities and stockholders’ equity	$	1,470,210	$	1,337,616

Statements of Income


	Year Ended December 31,
	2020		2019		2018
Cash dividends from subsidiary	$	65,000	$	56,750	$	—
Excess of earnings over dividend from subsidiary	16,693		43,199		44,850
Other	53		50		20
	81,746		99,999		44,870
Interest on borrowings	8,529		4,672		974
Salaries and employee benefits	612		790		853
Merger and acquisition expense	—		4,942		3,886
Other	798		797		529
	9,939		11,201		6,242
Earnings before income tax benefit	71,807		88,798		38,628
Income tax benefit	(2,076)		(1,941)		(713)
Net income	$	73,883	$	90,739	$	39,341

Statements of Cash Flows


	Year Ended December 31,
	2020		2019		2018
Cash flows from operating activities:
Net income	$	73,883	$	90,739	$	39,341
Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Amortization of debt discount and debt issuance costs, net	1,263		2,353		2
Equity in undistributed net income of Bank	(16,693)		(43,199)		(44,850)
(Increase) decrease in other assets	(1,853)		(1,861)		2,226
Increase (decrease) in other liabilities	726		(5,024)		(2,042)
Net cash provided (used in) by operating activities	57,326		43,008		(5,323)
Cash flows from investing activities:


Net cash received in acquisition	—		5,818		—

Net cash used in investing activities	—		5,818		—
Cash flows from financing activities:
Proceeds from issuance of subordinated notes, net of debt issuance costs paid	123,026		75,000		—
Net proceeds from sale of common stock in public offering	—		—		2
Proceeds from exercise of stock warrants	109		—		—
Redemption of subordinated debt	(5,000)		—		—
Proceeds from exercise of employee stock options	4,301		3,938		454
Payments to tax authorities for stock-based compensation	(3,829)		(1,346)		(593)
Proceeds from payments on ESOP loan	—		—		109
Offering costs paid in connection with acquisition	—		—		(899)
Repurchase of treasury stock	(57,470)		(94,533)		—
Dividends paid	(34,057)		(26,796)		—

Net cash provided (used in) by financing activities	27,080		(43,737)		(927)
Net increase (decrease) in cash and cash equivalents	84,406		5,089		(6,250)
Cash and cash equivalents at beginning of year	45,563		40,474		46,724
Cash and cash equivalents at end of year	$	129,969	$	45,563	$	40,474

Summary of Quarterly Financial Statements (Unaudited)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Summary of Quarterly Financial Statements (Unaudited)

The following quarterly information is unaudited. However, in the opinion of management, the information reflects all adjustments, necessary for the fair presentation of the results of operations, for the periods presented.


	2020
	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Interest income	$	78,100	$	77,429	$	79,342	$	86,979
Interest expense	11,334		11,559		13,585		19,574
Net interest income	66,766		65,870		65,757		67,405
Provision for credit losses	—		8,692		16,172		31,776
Provision for credit losses for unfunded commitments	902		1,447		2,799		3,881
Noninterest income	9,012		9,795		21,290		7,247
Noninterest expense	47,373		36,408		40,061		35,545
Income tax expense (benefit)	4,702		6,198		3,987		(684)
Net income	$	22,801	$	22,920	$	24,028	$	4,134
Earnings per share:
Basic	$	0.46	$	0.46	$	0.48	$	0.08
Diluted	0.46		0.46		0.48		0.08


	2019
	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Interest Income	$	91,742	$	95,643	$	96,177	$	95,224
Interest Expense	21,878		24,769		24,735		22,307
Net interest income	69,864		70,874		71,442		72,917
Provision for credit losses	3,493		9,674		3,335		5,012
Noninterest income	7,132		8,430		6,034		8,484
Noninterest expense	36,284		34,630		39,896		66,993
Income tax expense	8,168		7,595		7,369		1,989


Net income	$	29,051	$	27,405	$	26,876	$	7,407
Earnings per share:
Basic	$	0.56	$	0.52	$	0.50	$	0.14
Diluted	0.56		0.51		0.49		0.13

Subsequent Events (Notes)	12 Months Ended
Subsequent Events (Notes)	Dec. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn February 24, 2021, the Company announced the termination of $500,000 of an interest rate swap entered into in March 2020 to hedge the variability of cash flow payments attributable to changes in interest rates in regards to forecasted issuances of three-month term debt arrangements every three-months from March 2022 through March 2032. As a result of the interest rate swap termination, the Company expects to recognize a net pre-tax gain of approximately $42,995 into income starting in March 2022 on a straight line basis over a 10 year period.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounting Standards Codification

Segment Reporting

Reclassifications

Use of Estimates

Cash and Cash Equivalents

For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and federal funds sold.

Restrictions on cash

Restrictions on CashThe Bank is required to maintain regulatory reserve balances with the FRB. On March 15, 2020, the Board of Governors of the Federal Reserve System announced that it had reduced the required regulatory reserve balance to 0% effective on March 26, 2020. The Board of Governors took this action in reaction to the economic dislocation caused by the COVID-19 pandemic and in light of the Federal Open Markets Committee's announcement in 2019 that it intends to implement monetary policy in an ample reserve regime, where reserve requirements do not play a role.

Debt Securities

Equity Securities

Equity SecuritiesEquity securities are recorded at fair value, with unrealized gains and losses included in other noninterest income. The Company measures equity securities that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Dividends on equity securities are recorded in interest income for equity securities and other investments. Realized gains and losses are recorded on the sale of equity securities in gain (loss) on sales of securities.

Allowance for Credit Losses

Allowance for Credit Losses – Available for Sale Debt Securities

Allowance for Credit Losses – Held to Maturity Debt Securities

FHLB and FRB Stock

Loans Held for Sale

Fair Value Option

Fair Values of Financial Instruments

Gain on Sale of Loans

Gain on Sale of Guaranteed Portion of Small Business Administration ("SBA") Loans

Gain on Sale of Mortgage Loans Held for Sale

Adoption of New Accounting Standard

The following table illustrates the impact of ASC 326.


	January 1, 2020
	As Reported Under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
Assets:
Allowance for credit losses on debt securities held-to-maturity	$	—	$	—	$	—
Allowance for credit losses on loans
Construction and land	3,760		3,822		(62)
Farmland	65		61		4
1 - 4 family residential	6,002		1,378		4,624
Multi-family residential	2,593		1,965		628
Owner Occupied Commercial Real Estate	13,066		1,978		11,088
Non-Owner Occupied Commercial Real Estate	15,314		8,139		7,175
Commercial	27,729		12,369		15,360
Consumer	442		122		320
Allowance for credit losses on loans	$	68,971	$	29,834	$	39,137

Liabilities:
Allowance for credit losses on OBS credit exposures	$	1,718	$	878	$	840

ASU 2019-12, "Income Taxes (Topic 740)" ("ASU 2019-12") simplifies the accounting for income taxes by removing certain exceptions and improves the consistent application of GAAP by clarifying and amending other existing guidance. ASU 2019-012 will be effective for us on January 1, 2021 and is not expected to have any material impact on our consolidated financial statements.

ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04") amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The

amendments apply only to contracts and hedging relationships that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating the amended guidance and the impact on its consolidated financial statements and related disclosures.

ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs ("ASU 2020-08") clarifies the accounting for the amortization of purchase premiums for callable debt securities with multiple call dates. ASU 2020-8 will be effective for us on January 1, 2021 and is not expected to have a significant impact on our consolidated financial statements and related disclosures.

Loans Held for Investment

Loans Held for Investments

Acquired Loans

The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans.

Loans and Allowance for Loan losses

Collateral Dependent Financial Assets

Troubled-debt Restructurings (TDRs)

Contractual Term

Discounted Cash Flow Method

Loss-Rate Method

Probability of Default/Loss Given Default Method

Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

Derivatives Financial Instruments

Derivative Financial Instruments (Not Designated as Accounting Hedges)

Derivative Financial Instruments (Designated as Accounting Hedges)

Transfers of Financial Assets

Bank Premises and Equipment


Buildings and improvements			10 - 40 years
Site improvements			15 years
Tenant improvements			Lease term
Leasehold improvements			Lease term
Furniture and equipment			3 - 10 years

Leases

Securities Sold Under Agreements to Repurchase

Other Real Estate Owned

Bank-Owned Life Insurance

Goodwill and Intangible Assets


Core deposit intangible			7 - 10 years
In-place lease intangible			Lease term

Servicing Assets

Marketing Expense

Marketing ExpenseThe Company expenses all marketing costs as they are incurred.

Income Taxes

The Company files a consolidated income tax return with its subsidiaries. Federal income tax expense or benefit is allocated on a separate return basis.

Revenue from Contracts with Customer

Revenue from Contracts with Customers

Stock Based Compensation

Liability-Classified Awards

Treasury Stock

Treasury stock is stated at cost, which is determined by the first-in, first-out method.

Comprehensive Income

Business Combinations

Earnings Per Share

Earnings Per ShareEarnings per share (“EPS”) are based upon the weighted-average number of shares outstanding.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table illustrates the impact of ASC 326.


	January 1, 2020
	As Reported Under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
Assets:
Allowance for credit losses on debt securities held-to-maturity	$	—	$	—	$	—
Allowance for credit losses on loans
Construction and land	3,760		3,822		(62)
Farmland	65		61		4
1 - 4 family residential	6,002		1,378		4,624
Multi-family residential	2,593		1,965		628
Owner Occupied Commercial Real Estate	13,066		1,978		11,088
Non-Owner Occupied Commercial Real Estate	15,314		8,139		7,175
Commercial	27,729		12,369		15,360
Consumer	442		122		320
Allowance for credit losses on loans	$	68,971	$	29,834	$	39,137

Liabilities:
Allowance for credit losses on OBS credit exposures	$	1,718	$	878	$	840

Schedule of Estimated Lives of the Respective Assets


Buildings and improvements			10 - 40 years
Site improvements			15 years
Tenant improvements			Lease term
Leasehold improvements			Lease term
Furniture and equipment			3 - 10 years

Schedule of Intangible Assets

Intangible assets are initially recognized based on a valuation performed as of the acquisition date and are amortized on a straight-line basis over their estimated useful lives of the respective intangible assets as follows:


Core deposit intangible			7 - 10 years
In-place lease intangible			Lease term

Intangible assets in the accompanying consolidated balance sheets are summarized as follows:


	December 31, 2020
	Remaining
	Weighted	Gross						Net
	Amortization	Intangible		Valuation		Accumulated		Intangible
	Period	Asset		Allowance		Amortization		Asset
Core deposit intangibles	6.0 years	$	81,769	$	—	$	24,011	$	57,758
Servicing asset	7.4 years	6,847		556		2,928		3,363
Intangible lease assets	1.4 years	4,779		—		4,167		612
		$	93,395	$	556	$	31,106	$	61,733


	December 31, 2019
	Remaining
	Weighted	Gross						Net
	Amortization	Intangible		Valuation		Accumulated		Intangible
	Period	Asset		Allowance		Amortization		Asset
Core deposit intangibles	7.0 years	$	81,769	$	—	$	14,206	$	67,563
Servicing asset	6.7 years	5,726		188		2,425		3,113
Intangible lease assets	1.4 years	4,765		—		3,178		1,587
		$	92,260	$	188	$	19,809	$	72,263

Schedule of Reconciliation Between Weighted Average Shares Used for Calculating Basic and Diluted EPS

The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the years ended December 31, 2020, 2019 and 2018.


	Year Ended December 31,
	2020		2019		2018
Earnings (numerator)


Net income allocated to common stockholders	$	73,883	$	90,739	$	39,341
Shares (denominator)
Weighted average shares outstanding for basic EPS (thousands)	49,883		53,154		24,169
Dilutive effect of employee stock-based awards	153		824		421
Adjusted weighted average shares outstanding	50,036		53,978		24,590
Earnings per share:
Basic	$	1.48	$	1.71	$	1.63
Diluted	$	1.48	$	1.68	$	1.60

Supplemental Statement of Cash Flows (Tables)

12 Months Ended

Dec. 31, 2020

Supplemental Cash Flow Elements [Abstract]

Schedule of Other Supplemental Cash Flow Information

Other supplemental cash flow information is presented below:


	Year Ended December 31,
	2020		2019		2018
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	58,236	$	88,175	$	29,178
Cash paid for income taxes	40,690		24,100		6,525
Supplemental Disclosures of Non-Cash Flow Information:

Setup of ROU asset and lease liability upon adoption of ASC 842	$	—	$	9,380	$	—
Lease liabilities arising from obtaining right-of-use assets	4,123		—		—
Reclassification of deferred offering costs paid in 2018 from other assets to additional paid-in-capital	—		788		—
Subordinated debt issuance costs accrued but not yet paid in 2019	—		315		—
Reclassification of lease intangibles, cease-use liability and deferred rent liability to ROU asset upon adoption of ASC 842	—		(48)		—


Net foreclosure of other real estate owned and repossessed assets	2,764		5,995		8
Loans held for investment transferred to loans held for sale	4,511		—		—
Reclassification of branch assets held for sale to loans held for investment	—		26,171		—
Reclassification of branch liabilities held for sale to interest-bearing transaction and savings deposits	—		1,713		—

Schedule of Supplemental Noncash Investing Activities


	Year Ended December 31,
	2020		2019		2018
Noncash assets acquired1
Debt securities	$	—	$	660,792	$	—
Equity securities	—		12,322		—
FHLB and FRB stock	—		29,490		—
Loans held for sale	—		9,360		—
Loans held for investment	—		3,245,248		(4,050)
Accrued interest receivable2	—		11,395		—
Bank-owned life insurance	—		56,841		—
Bank premises, furniture and equipment	—		36,855		1,162
Investment in unconsolidated subsidiaries	—		666		—

Intangible assets, net	—		65,718		(956)
Goodwill	—		209,393		1,995
Other assets	—		11,124		1,806
Right of use asset2	—		9,373		—
Deferred taxes2	—		11,783		—
Current taxes2	—		1,812		—
Assets held for sale	—		85,307		—
Total assets	$	—	$	4,457,479	$	(43)
Noncash liabilities assumed
Noninterest-bearing deposits	$	—	$	825,364	$	303
Interest-bearing deposits	—		1,300,825		—
Certificates and other time deposits	—		1,346,915		—
Accounts payable and other liabilities	—		26,491		—
Lease liability3	—		9,373		—
Accrued interest payable	—		5,181		(260)
Securities sold under agreements to repurchase	—		3,226		—
Advances from FHLB	—		300,000		—
Subordinated debentures and subordinated notes	—		56,233		—
Liabilities held for sale	—		52,682		—
Total liabilities	$	—	$	3,926,290	$	43


Total equity	—		—		—
29,532,957 shares of common stock exchanged in connection with Green	$	—	$	631,415	$	—
497,594 share of common stock exchanged in connection with Green vested RSUs	$	—	$	5,801	$	—

2 Accrued interest receivable, right of use asset, deferred taxes and current taxes are included in "Other assets" in our consolidated balance sheets for the year ended December 31, 2019.

3 Lease liability is included in "Accounts payable and other liabilities" in our consolidated balance sheets for the year ended December 31, 2019.

Securities (Tables)

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Equity Securities, FV-NI

The gross unrealized gain recognized on equity securities with readily determinable fair values recorded in other noninterest income in the Company’s consolidated statements of income were as follows:


	2020		2019		2018
Unrealized gain recognized on equity securities with a readily determinable fair value	$	480	$	325	$	—

Schedule of Carrying Amount and Approximate Fair Values of Available-For-Sale Securities

The amortized cost, related gross unrealized gains and losses, allowance for credit losses and the fair value of available for sale and held to maturity debt securities are as follows:


	December 31, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Allowance for
	Cost		Gains		Losses		Credit Losses		Fair Value
Available for Sale
Corporate bonds	$	173,050	$	6,417	$	1,297	—		$	178,170
Municipal securities	115,533		10,129		6		—		125,656
Mortgage-backed securities	240,320		16,047		42		—		256,325
Collateralized mortgage obligations	388,080		20,895		66		—		408,909
Asset-backed securities	52,335		2,934		—		—		55,269
	$	969,318	$	56,422	$	1,411	$	—	$	1,024,329

			Gross		Gross
	Amortized		Unrealized		Unrealized		Allowance for
	Cost		Gains		Losses		Credit Losses		Fair Value
Held to maturity
Mortgage-backed securities	$	6,982	$	849	$	—	—		$	7,831
Collateralized mortgage obligations	1,620		103		—		—		1,723
Municipal securities	22,270		2,459		—		—		24,729
	$	30,872	$	3,411	$	—	—		$	34,283

The Company did not transfer any debt securities from available for sale to held to maturity at fair value during the year ended December 31, 2020.


	December 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
Available for Sale

Corporate bonds	76,997		1,974		—		78,971
Municipal securities	74,956		3,724		—		78,680
Mortgage-backed securities	288,938		9,512		260		298,190
Collateralized mortgage obligations	431,276		6,465		1,503		436,238
Asset-backed securities	69,964		2,322		—		72,286
	$	942,131	$	23,997	$	1,763	$	964,365

Held to maturity
Mortgage-backed securities	$	8,621	$	452	$	—	$	9,073
Collateralized mortgage obligations	1,809		43		—		1,852
Municipal securities	22,535		1,350		—		23,885
	$	32,965	$	1,845	$	—	$	34,810

Schedule of Investment Securities That Have Been in a Continuous Unrealized Loss Position


	December 31, 2020
	Less Than 12 Months				12 Months or More				Totals
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
Available for Sale

Corporate bonds	31,953		1,297		—		—		31,953		1,297
Municipal securities	$	2,667	$	6	$	—	$	—	$	2,667	$	6
Mortgage-backed securities	34,402		108		—		—		34,402		108


	$	69,022	$	1,411	$	—	$	—	$	69,022	$	1,411


	December 31, 2019
	Less Than 12 Months				12 Months or More				Totals
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
Available for Sale


Municipal securities	468		1		—		—		468		1
Mortgage-backed securities	28,883		370		—		—		28,883		370
Collateralized mortgage obligations	109,749		1,392		—		—		109,749		1,392

	$	139,100	$	1,763	$	—	$	—	$	139,100	$	1,763

Schedule of Amortized Costs and Estimated Fair Values of Securities Available-For-Sale, by Contractual Maturity


	December 31, 2020
	Available For Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value

Due from one year to five years	$	4,935	$	5,139	$	—	$	—
Due from five years to ten years	154,576		158,510		3,334		3,591
Due after ten years	129,072		140,177		18,936		21,138
	288,583		303,826		22,270		24,729
Mortgage-backed securities and collateralized mortgage obligations	628,400		665,234		8,602		9,554
Asset-backed securities	52,335		55,269		—		—
	$	969,318	$	1,024,329	$	30,872	$	34,283


	December 31, 2019				December 31, 2019
	Available For Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	—	$	—	$	—	$	—
Due from one year to five years	4,904		5,100		—		—
Due from five years to ten years	74,596		76,403		1,204		1,219
Due after ten years	72,453		76,148		21,331		22,666
	151,953		157,651		22,535		23,885
Mortgage-backed securities and collateralized mortgage obligations	720,214		734,428		10,430		10,925
Asset-backed securities	69,964		72,286		—		—
	$	942,131	$	964,365	$	32,965	$	34,810

Schedule of Proceeds From Sales of Investment Securities Available-For-Sale and Gross Gains and Losses

Proceeds from sales of debt securities available for sale and gross realized gains and losses for the years ended December 31, 2020, 2019 and 2018 were as follows:


	December 31,
	2020		2019		2018
Proceeds from sales	$	113,771	$	567,718	$	40,822
Gross realized gains	2,879		532		335
Gross realized losses	256		2,384		399

Loans Held for Investment and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Summary of Loans

Loans held for investment in the accompanying consolidated balance sheets are summarized as follows:


	December 31,
	2020		2019
Loans held for investment, carried at amortized cost:
Real estate:
Construction and land	$	693,030	$	629,374
Farmland	13,844		16,939
1 - 4 family residential	524,344		549,811
Multi-family residential	424,962		320,041
OOCRE	717,472		706,782
NOOCRE	1,904,132		1,784,201
Commercial	1,559,546		1,712,838
MW	577,594		183,628
Consumer	13,000		17,457
	6,427,924		5,921,071

Deferred loan (fees) costs, net	(2,468)		134
Allowance for credit losses	(105,084)		(29,834)
Loans held for investment carried at amortized cost, net	$	6,320,372	$	5,891,371

Loans held for investment, carried at fair value:
PPP Loans	$	358,042	$	—

Total loans held for investment, net	$	6,678,414	$	5,891,371

The carrying amount of PCI loans included in the consolidated balance sheets and the related outstanding balances at December 31, 2019 are set forth in the table below. The outstanding balance represents the total amount owed, including accrued but unpaid interest, and any amounts previously charged off.


	December 31, 2019
Carrying amount	$	126,125
Outstanding balance	157,417

Changes in the accretable yield for PCI loans for the years ended December 31, 2019 and 2018 are included in table below.


	Year Ended December 31, 2019		Year Ended December 31, 2018
Balance at beginning of period	$	18,747	$	2,723
Additions	19,870		1,459

Reclassifications from nonaccretable	12,719		19,162

Accretion	(13,112)		(4,597)
Balance at year-end	$	38,224	$	18,747

Schedule of Recorded Investment in Loans Related to the Balance in the Allowance for Loan Losses on the Basis of Impairment Methodology

The activity in the ACL related to loans held for investment is as follows:


	December 31, 2020
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of year	$	3,821	$	62	$	2,143	$	1,200	$	1,991	$	8,126	$	12,369	$	122	$	29,834
Impact of adopting ASC 326 non-PCD loans	(707)		4		3,716		628		3,406		5,138		7,025		217		19,427
Impact of adoption ASC 326 PCD loans	645		—		908		—		7,682		2,037		8,335		103		19,710
Credit loss expense non-PCD loans	4,554		(10)		1,720		4,403		4,364		15,397		24,413		(178)		54,663
Credit loss expense PCD loans	(545)		—		(378)		—		(5,303)		7,404		817		(18)		1,977
Charge-offs	—		—		(18)		—		(2,421)		(2,865)		(15,507)		(162)		(20,973)
Recoveries	—		—		57		—		—		—		102		287		446
Ending Balance	$	7,768	$	56	$	8,148	$	6,231	$	9,719	$	35,237	$	37,554	$	371	$	105,084


	December 31, 2019
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of year	$	2,186	$	58	$	1,614	$	361	$	1,393	$	5,070	$	8,554	$	19	$	19,255
Credit Loss Expense	1,635		4		619		839		598		3,056		14,487		276		21,514
Charge-offs	—		—		(157)		—		—		—		(10,898)		(265)		(11,320)
Recoveries	—		—		67		—		—		—		226		92		385
Ending Balance	$	3,821	$	62	$	2,143	$	1,200	$	1,991	$	8,126	$	12,369	$	122	$	29,834


	December 31, 2018
	Construction and Land		Farmland		Residential		Multifamily		OOCRE		NOOCRE		Commercial		Consumer		Total
Balance at beginning of year	$	1,270	$	45	$	1,195	$	278	$	1,113	$	3,297	$	5,588	$	22	$	12,808
Credit Loss Expense	916		13		419		83		280		1,773		3,100		19		6,603
Charge-offs	—		—		—		—		—		—		(175)		(22)		(197)
Recoveries	—		—		—		—		—		—		41		—		41
Ending Balance	$	2,186	$	58	$	1,614	$	361	$	1,393	$	5,070	$	8,554	$	19	$	19,255


	December 31, 2019
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial		Consumer		Total
Loans individually evaluated for impairment	$	567	$	156	$	21,644	$	5,188	$	61	$	27,616
Loans collectively evaluated for impairment	641,799		865,927		2,372,485		1,869,259		17,267		5,766,737
PCI loans	3,947		3,769		96,854		22,019		129		126,718
Total	$	646,313	$	869,852	$	2,490,983	$	1,896,466	$	17,457	$	5,921,071

ACL Allocations
Loans individually evaluated for impairment	$	128	$	37	$	395	$	1,042	$	—	$	1,602
Loans collectively evaluated for impairment	3,755		3,306		9,702		10,754		122		27,639
PCI loans	—		—		20		573		—		593
Total	$	3,883	$	3,343	$	10,117	$	12,369	$	122	$	29,834

Schedule of Securities Financing Transactions

The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of December 31, 2020:


	Real Property(1)		ACL Allocation
Real estate:


1 - 4 family residential	$	199	$	11

OOCRE	—		—
NOOCRE	16,080		—
Commercial	8,666		4,668

Consumer	143		50
Total	$	25,088	$	4,729

(1) Loans reported exclude PCD loans that transitioned upon adoption of ASC 326 and accounted for on a pooled basis. Refer to Note 1 for further discussion.

Summary of Impaired Loans, Including Purchased Credit Impaired Loans and Troubled Debt Restructurings

The following table presents information on impaired loans as of December 31, 2019, as determined in accordance with ASC 310 prior to the Company’s adoption of ASU 2016-13:


	December 31, 2019(1)
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment YTD
Real estate:
Construction and land	$	567	$	—	$	567	$	567	$	128	$	1,793
Farmland	—		—		—		—		—		—
1 - 4 family residential	156		—		156		156		37		158
Multi-family residential	—		—		—		—		—		—
Commercial real estate	21,644		21,040		604		21,644		395		22,529
Commercial	5,188		2,011		3,177		5,188		1,042		8,546
Consumer	61		61		—		61		—		62
Total	$	27,616	$	23,112	$	4,504	$	27,616	$	1,602	$	33,088

(1) Loans reported exclude PCI loans.

Schedule of Non-Accrual Loans, Excluding Purchased Credit Impaired Loans, Aggregated By Class of Loans

Nonaccrual loans, aggregated by class of loans, as of December 31, 2020 and 2019, were as follows:


	December 31, 2020				December 31, 2019
	Nonaccrual		Nonaccrual With No ACL			Nonaccrual		Nonaccrual With No ACL
Real estate:
Construction and land	$	—	$	—		$	567	$	—

1 - 4 family residential	3,308		3,199			1,581		1,581

OOCRE	6,266		5,645			3,029		2,778
NOOCRE	40,830		19,213			18,876		18,876
Commercial	29,318		1,015			5,672		2,747

Consumer	1,374		1,220			54		54
Total	$	81,096	$	30,292		$	29,779	$	26,036

Schedule of Age Analysis of Past Due Loans, Excluding Purchased Credit Impaired Loans, Aggregated by Class of Loans

An age analysis of past due loans, aggregated by class of loans, as of December 31, 2020 and 2019 is as follows:


	December 31, 2020
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		PCD		Total Loans		Total 90 Days Past Due and Still Accruing(1)
Real estate:
Construction and land	$	—	$	—	$	—	$	—	$	690,345	$	2,685	$	693,030	$	—
Farmland	—		—		—		—		13,844		—		13,844		—
1 - 4 family residential	2,338		122		4,802		7,262		508,341		8,741		524,344		1,670
Multi-family residential	—		—		—		—		424,962		—		424,962		—
OOCRE	2,278		2,143		2,814		7,235		672,246		37,991		717,472		1,280
NOOCRE	7,675		2,911		17,586		28,172		1,832,784		43,176		1,904,132		—
Commercial	1,983		1,431		20,360		23,774		1,516,312		19,460		1,559,546		1,230
MW	—		—		—		—		577,594		—		577,594		—
Consumer	75		77		1,338		1,490		11,308		202		13,000		24
	$	14,349	$	6,684	$	46,900	$	67,933	$	6,247,736	$	112,255	$	6,427,924	$	4,204

(1) Loans 90 days past due and still accruing excludes $32,627 of pooled PCD loans as of December 31, 2020 that transitioned upon adoption of ASC 326. Refer to Note 1 for further discussion.


	December 31, 2019
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		PCI		Total Loans		Total 90 Days Past Due and Still Accruing (1)
Real estate:
Construction and land	$	—	$	—	$	—	$	—	$	629,374	$	3,947	$	629,374	$	800
Farmland	—		—		—		—		16,939		—		16,939		—
1 - 4 family residential	2,595		520		1,155		4,270		541,772		3,769		549,811		959
Multi-family residential	—		—		—		—		320,041		—		320,041		—
Commercial real estate	12		3,834		868		4,714		2,389,415		96,854		2,490,983		511
Commercial	3,572		1,707		1,497		6,776		1,684,043		22,019		1,712,838		1,317
Consumer	30		2,641		140		2,811		14,646		129		17,457		73
	$	6,209	$	8,702	$	3,660	$	18,571	$	5,596,230	$	126,718	$	5,737,443	$	3,660

(1) Loans 90 days past due and still accruing excludes $41,328 of PCI loans accounted for on a pooled basis as of December 31, 2019.

Schedule of Terms of Certain Loans That Were Modified as Troubled Debt Restructurings

The terms of certain loans modified as TDRs during the year ended December 31, 2020 and December 31, 2019 are summarized in the following tables:


	During the year ended December 31, 2020
	Adjusted Payment Structure		Payment Deferrals		Total Modifications		Number of Loans





OOCRE	$	5,326	$	—	$	5,326	5
NOOCRE	—		19,454		19,454		4
Commercial	1,419		1,345		2,764		4


Total	$	6,745	$	20,799	$	27,544	13


	During the year ended December 31, 2019
	Adjusted Payment Structure		Payment Deferrals		Total Modifications		Number of Loans





Commercial	$	919	$	115	$	1,034	2

Summary of Internal Ratings of Loans, Including Purchased Credit Impaired Loans


	Term Loans Amortized Cost Basis by Origination Year1
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31, 2020
Construction and land:
Pass	$	155,358	$	282,497	$	179,372	$	11,791	$	9,938	$	27,147	$	21,066	$	—	$	687,169
Special mention	—		—		2,666		—		—		—		—		—		2,666
Substandard	—		—		510		—		—		—		—		—		510
PCD	—		—		—		—		—		2,685		—		—		2,685
Total construction and land	$	155,358	$	282,497	$	182,548	$	11,791	$	9,938	$	29,832	$	21,066	$	—	$	693,030

Farmland:
Pass	$	867	$	972	$	3,367	$	3,688	$	—	$	3,656	$	1,294	$	—	$	13,844



Total farmland	$	867	$	972	$	3,367	$	3,688	$	—	$	3,656	$	1,294	$	—	$	13,844

1 - 4 family residential:
Pass	$	120,580	$	79,617	$	91,890	$	49,338	$	31,936	$	115,797	$	19,065	$	2,968	$	511,191
Special mention	—		1,077		154		760		—		687		—		—		2,678
Substandard	—		—		142		668		—		—		924		—		1,734
PCD	—		—		—		—		—		8,741		—		—		8,741
Total 1 - 4 family residential	$	120,580	$	80,694	$	92,186	$	50,766	$	31,936	$	125,225	$	19,989	$	2,968	$	524,344

Multi-family residential:
Pass	$	107,332	$	106,559	$	139,721	$	18,722	$	32,672	$	7,218	$	58	$	—	$	412,282
Special mention	—		—		12,680		—		—		—		—		—		12,680


Total multi-family residential	$	107,332	$	106,559	$	152,401	$	18,722	$	32,672	$	7,218	$	58	$	—	$	424,962

OOCRE:
Pass	$	113,741	$	65,262	$	75,940	$	79,253	$	79,202	$	176,668	$	5,532	$	—	$	595,598
Special mention	—		948		22,725		3,701		12,860		4,326		—		—		44,560
Substandard	370		—		10,579		3,830		11,315		6,822		201		6,206		39,323


PCD	—			—			—		—		7,951		30,040		—		—		37,991
Total OOCRE	$	114,111		$	66,210		$	109,244	$	86,784	$	111,328	$	217,856	$	5,733	$	6,206	$	717,472

NOOCRE:
Pass	$	361,246		$	255,976		$	445,079	$	90,738	$	174,893	$	309,572	$	13,413	$	—	$	1,650,917
Special mention	101			31,714			37,572		19,262		25,997		37,951		493		—		153,090
Substandard	1,226		0	9,850		0	4,562		4,108		—		23,098		14,105		—		56,949
PCD	—			—			18,744		—		6,652		17,780		—		—		43,176
Total NOOCRE	$	362,573		$	297,540		$	505,957	$	114,108	$	207,542	$	388,401	$	28,011	$	—	$	1,904,132

Commercial:
Pass	$	251,004		$	158,158		$	112,961	$	50,734	$	19,821	$	41,856	$	758,832	$	13,400	$	1,406,766
Special mention	1,306			2,539			8,224		10,033		1,201		2,165		26,922		3,670		56,060
Substandard	722			4,487			23,245		3,772		7,216		2,083		30,460		5,275		77,260
PCD	—			—			—		3,382		4,196		11,882		—		—		19,460
Total commercial	$	253,032		$	165,184		$	144,430	$	67,921	$	32,434	$	57,986	$	816,214	$	22,345	$	1,559,546

MW:
Pass	$	—		$	—		$	—	$	—	$	—	$	—	$	577,594	$	—	$	577,594



Total MW	$	—		$	—		$	—	$	—	$	—	$	—	$	577,594	$	—	$	577,594

Consumer:
Pass	$	2,489		$	1,216		$	1,038	$	3,899	$	887	$	353	$	1,475	$	—	$	11,357
Special mention	—			—			—		—		25		227		—		—		252
Substandard	—			—			—		60		—		66		1,063		—		1,189
PCD	—			—			—		36		—		166		—		—		202
Total consumer	$	2,489		$	1,216		$	1,038	$	3,995	$	912	$	812	$	2,538	$	—	$	13,000

Total Pass	$	1,112,617		$	950,257		$	1,049,368	$	308,163	$	349,349	$	682,267	$	1,398,329	$	16,368	$	5,866,718
Total Special Mention	1,407			36,278			84,021		33,756		40,083		45,356		27,415		3,670		271,986
Total Substandard	2,318			14,337			39,038		12,438		18,531		32,069		46,753		11,481		176,965
Total PCD	—			—			18,744		3,418		18,799		71,294		—		—		112,255
Total	$	1,116,342		$	1,000,872		$	1,191,171	$	357,775	$	426,762	$	830,986	$	1,472,497	$	31,519	$	6,427,924

1 Term loans amortized cost basis by origination year excludes $2,468 of deferred loan fees, net.

The following table summarizes the Company’s internal ratings of its loans, including PCI loans, as of December 31, 2019:


	December 31, 2019
	Pass		Special Mention		Substandard		Doubtful		PCI		Total
Real estate:
Construction and land	$	618,773	$	3,965	$	2,689	$	—	$	3,947	$	629,374
Farmland	16,939		—		—		—		—		16,939
1 - 4 family residential	541,787		795		3,460		—		3,769		549,811
Multi-family residential	320,041		—		—		—		—		320,041
Commercial real estate	2,332,357		23,494		38,278		—		96,854		2,490,983
Commercial	1,610,150		51,999		28,670		—		22,019		1,712,838
MW	183,628		—		—		—		—		183,628
Consumer	17,106		40		182		—		129		17,457
Total	$	5,640,781	$	80,293	$	73,279	$	—	$	126,718	$	5,921,071

Schedule of Summary of Changes in Servicing Assets

A summary of the changes in the related servicing assets are as follows:


	Year Ended December 31,
	2020		2019
Balance at beginning of year	$	3,113	$	1,304
Servicing assets acquired through acquisition	—		2,382
Increase from loan sales	1,121		1,253
Servicing asset impairment, net of recoveries	(368)		(188)
Amortization charged as a reduction to income	(503)		(1,638)

Balance at year-end	$	3,363	$	3,113

Bank Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of Bank Premises and Equipment

Bank premises and equipment in the accompanying consolidated balance sheets are summarized as follows:


	December 31,
	2020		2019
Building and improvements	$	61,035	$	60,959
Site improvements	3,303		2,633
Tenant improvements	779		744
Leasehold improvements	5,923		5,542
Land	44,078		45,878
Furniture, fixtures and equipment	17,751		16,073
Construction in Progress	630		608
	133,499		132,437
Less accumulated depreciation and amortization	18,436		13,901
	$	115,063	$	118,536

Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Summary of Lease Costs

The table below summarizes the Company’s net lease cost:


	For the Year Ended December 31,
	2020		2019
Operating lease cost	$	4,131	$	4,999

Variable lease cost	810		988
Net lease cost	$	4,941	$	5,987

The table below summarizes other information related to the Company’s operating leases:


	For the Year Ended December 31,
	2020			2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,994		$	4,325
Weighted-average remaining lease term - operating leases, in years	3.3 years			4.4 years
Weighted-average discount rate - operating leases	1.56		%	1.59		%

Summary of Remaining Lease Liabilities

A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows:


	December 31, 2020
Lease payments due:
Within one year	$	3,637
After one but within two years	3,323
After two but within three years	3,246
After three but within four years	2,808
After four but within five years	2,058
After five years	1,325
Total undiscounted cash flows	16,397
Less: Discount on cash flows	(796)
Total lease liability	$	15,601

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets


Core deposit intangible			7 - 10 years
In-place lease intangible			Lease term

Intangible assets in the accompanying consolidated balance sheets are summarized as follows:


	December 31, 2020
	Remaining
	Weighted	Gross						Net
	Amortization	Intangible		Valuation		Accumulated		Intangible
	Period	Asset		Allowance		Amortization		Asset
Core deposit intangibles	6.0 years	$	81,769	$	—	$	24,011	$	57,758
Servicing asset	7.4 years	6,847		556		2,928		3,363
Intangible lease assets	1.4 years	4,779		—		4,167		612
		$	93,395	$	556	$	31,106	$	61,733


	December 31, 2019
	Remaining
	Weighted	Gross						Net
	Amortization	Intangible		Valuation		Accumulated		Intangible
	Period	Asset		Allowance		Amortization		Asset
Core deposit intangibles	7.0 years	$	81,769	$	—	$	14,206	$	67,563
Servicing asset	6.7 years	5,726		188		2,425		3,113
Intangible lease assets	1.4 years	4,765		—		3,178		1,587
		$	92,260	$	188	$	19,809	$	72,263

Schedule of the Estimated Aggregate Future Amortization Expense for Intangible Assets

The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2020 was as follows:


Year	Amount
2021	$	10,509
2022	10,439
2023	10,266
2024	10,238
2025	9,800
Thereafter	10,481
	$	61,733

As of December 31, 2020, the expected future minimum commitment payments under the Company’s qualified affordable housing investments for each of the following five years were:


Year Ending December 31,	Future Minimum Payments
2021	$	132
2022	26
2023	26
2024	37
2025	51
Thereafter	90
Total	$	362

Goodwill (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in the Carrying Amount of Goodwill

Changes in the carrying amount of goodwill in the accompanying consolidated balance sheets are summarized as follows:


	December 31,
	2020		2019
Balance at beginning of year	$	370,840	$	161,447


Green acquisition	—		209,393

Balance at end of year	$	370,840	$	370,840

Deposits (Tables)

12 Months Ended

Dec. 31, 2020

Schedule Summarized of the Deposits

Deposits in the accompanying consolidated balance sheets are summarized as follows:


	December 31,
	2020		2019
Noninterest-bearing demand accounts	$	2,097,099	$	1,556,500
Interest-bearing demand accounts	453,111		388,877
Savings accounts	106,820		86,079
Limited access money market accounts	2,398,525		2,180,016
Certificates of deposit, greater than $100	1,179,853		1,234,324
Certificates of deposit, less than $100	277,438		448,554
Total	$	6,512,846	$	5,894,350

Scheduled Maturities of Certificate of Deposits

As of December 31, 2020, the scheduled maturities of certificates of deposit were as follows:


Year	Amount
2021	$	1,194,780
2022	217,932
2023	24,035
2024	12,365
2025	8,179

Total	$	1,457,291

Advances from the FHLB (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Contractual Maturities of FHLB Advances

Contractual maturities of FHLB advances at December 31, 2020 were as follows:



2022	$	27,718



2025 and thereafter	750,000
Total	$	777,718

Borrowed Funds (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of Junior Subordinated Debentures and Subordinated Notes

Borrowed funds in the accompanying consolidated balance sheets are as follows:


	December 31,
	2020		2019
Junior subordinated debentures (1)	$	30,244	$	30,023
Subordinated notes (2)	232,534		115,548
	$	262,778	$	145,571

(1) Junior subordinated debentures are net of a discount of $3,624 and 3,845 as of December 31, 2020 and 2019, respectively.

(2) Subordinated notes include a premium of $1,038 and $2,081 and debt issuance costs of $3,504 and $1,533 as of December 31, 2020 and 2019, respectively.

Components of Provision for Income Taxes

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 505
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-Section 50
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

The provision for income taxes is summarized as follows:


	Year Ended December 31,
	2020		2019		2018
Income tax expense (benefit):
Current	$	23,587	$	16,068	$	8,189
Deferred	(9,384)		9,053		2,707
	$	14,203	$	25,121	$	10,896

Schedule of Effective Income Tax Rate Reconciliation


	Year Ended December 31,
	2020			2019			2018
Federal incomes tax expense rate at 21% for December 31, 2020, 2019 and 2018	$	18,498		$	24,330		$	10,550
Bank-owned life insurance	(407)			(422)			(124)
Non-deductible transaction costs	—			308			727
Tax exempt interest income	(452)			(391)			(169)
Impact of IRS Settlement	—			(1,556)			—
Deferred tax true up	(1,181)			—			—
Deferred tax asset re-measurement due to the Tax Act	—			—			34
162(m) Disallowance	65			1,512			—
State Taxes	902			760			110
Excess benefit on share-based compensation	(1,435)			205			(248)
Net Operating Loss ("NOL") Carryback	(1,799)			—			—
Other	12			375			16
Total income tax expense	$	14,203		$	25,121		$	10,896
Effective tax rate	16.1		%	21.7		%	21.7		%

Schedule of Significant Components of the Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:


	December 31,
	2020		2019
Deferred tax assets:

Allowance for credit losses	$	24,324	$	6,232
Equity compensation	3,390		3,703
Purchase premium/loan discounts	2,945		9,347

Lease liability	3,276		2,960
Purchase securities	2,905		2,945
Other	3,901		3,930
Total deferred tax assets	40,741		29,117
Deferred tax liabilities:
Intangibles	11,911		13,527
Bank premises and equipment	4,036		4,811
ROU asset	3,124		2,773
Net unrealized gain on available for sale debt securities and derivative instruments	14,944		4,669
Other	2,063		1,904
Total deferred tax liabilities	36,078		27,684
Net deferred tax asset	$	4,663	$	1,433

Schedule of Unrecognized Tax Benefits Roll Forward


	December 31
	2020		2019		2018
Unrecognized tax benefits at the beginning of the year:	$	—	$	—	$	—
Gross increases, related to tax positions taken in a prior period	281		2,155		—
Gross increases, related to tax positions taken in current period	268		—		—
Settlement with taxing authority	—		(2,155)		—
Unrecognized tax benefits at the end of the year	$	549	$	—	$	—

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of cost, amortization, depreciation, and carrying amount

The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2020 was as follows:


Year	Amount
2021	$	10,509
2022	10,439
2023	10,266
2024	10,238
2025	9,800
Thereafter	10,481
	$	61,733

As of December 31, 2020, the expected future minimum commitment payments under the Company’s qualified affordable housing investments for each of the following five years were:


Year Ending December 31,	Future Minimum Payments
2021	$	132
2022	26
2023	26
2024	37
2025	51
Thereafter	90
Total	$	362

Schedule of other commitments

As of December 31, 2020, the expected future minimum commitment payments under the Company’s qualified affordable housing investments for each of the following five years were:


Year Ending December 31,	Future Minimum Payments
2021	$	132
2022	26
2023	26
2024	37
2025	51
Thereafter	90
Total	$	362

Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Assets Measured at Fair Value on a Recurring Basis


	December 31, 2020
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Financial Assets:
Available for sale debt securities	$	—	$	1,024,329	$	—	$	1,024,329
Equity securities with a readily determinable fair value	11,363		—		—		11,363
PPP Loans	—		358,042		—		358,042
Loans held for sale (1)	—		6,681		—		6,681
Interest rate swap designated as hedging instruments	—		17,543		—		17,543
Customer interest rate swaps not designated as hedging instruments	—		10,937		—		10,937
Correspondent interest rate caps and collars not designated as hedging instruments	—		1		—		1
Financial Liabilities:
Interest rate swap designated as hedging instruments	$	—	$	2,255	$	—	$	2,255
Correspondent interest rate caps and collars not designated as hedging instruments	—		11,666		—		11,666
Customer interest rate swaps not designated as hedging instruments	—		1		—		1

(1) Represents loans held for sale elected to be carried at fair value upon origination or acquisition.


	December 31, 2019
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Financial Assets:
Available for sale debt securities	$	—	$	964,365	$	—	$	964,365
Equity securities with a readily determinable fair value	11,122		—		—		11,122
Loans held for sale (1)	—		10,068		—		10,068
Correspondent interest rate swaps	—		105		—		105
Customer interest rate swaps	—		4,393		—		4,393
Correspondent interest rate caps and collars	—		11		—		11
Commercial loan interest rate floor	—		3,353		—		3,353
Financial Liabilities:
Correspondent interest rate swaps	$	—	$	4,736	$	—	$	4,736
Customer interest rate swaps	—		84		—		84
Customer interest rate caps and collars	—		11		—		11

(1) Represents loans held for sale elected to be carried at fair value upon origination or acquisition.

Schedule of Assets Measured at Fair Value on a Non-recurring Basis


	Fair Value
	Measurements Using
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
As of December 31, 2020
Assets:
Collateral dependent loans with an ACL	$	—	$	—	$	2,386	$	2,386
Servicing assets with a valuation allowance	—		—		2,975		2,975


As of December 31, 2019
Assets:
Impaired loans	$	—	$	—	$	4,504	$	4,504
Other real estate owned	—		—		5,995		5,995

Schedule of Estimated Fair Values and Carrying Values of All Financial Instruments


			Fair Value
	Carrying
	Amount		Level 1		Level 2		Level 3
December 31, 2020
Financial assets:
Cash and cash equivalents	$	230,825	$	—	$	230,825	$	—
Held-to-maturity debt securities	30,872		—		34,283		—
Loans held for sale(1)	14,733		—		14,733		—
Loans held for investment(2)	6,317,986		—		—		6,335,402
Accrued interest receivable	23,798		—		23,798		—
Bank-owned life insurance	82,855		—		82,855		—
Servicing asset	388		—		486		—
Equity securities without a readily determinable fair value	3,575		N/A		N/A		N/A
FHLB and FRB stock	71,236		N/A		N/A		N/A
Financial liabilities:
Deposits	$	6,512,846	$	—	$	6,608,849	$	—
Advances from FHLB	777,718		—		782,321		—
Accrued interest payable	2,665		—		2,665		—
Subordinated debentures and subordinated notes	262,778		—		262,778		—
Securities sold under agreement to repurchase	2,225		—		2,199		—

December 31, 2019
Financial assets:
Cash and cash equivalents	$	251,550	$	—	$	251,550	$	—
Held-to-maturity debt securities	32,965		—		34,810		—
Loans held for sale(1)	4,012		—		4,012		—
Loans held for investment(2)	5,921,205		—		—		5,899,945
Accrued interest receivable	19,508		—		19,508		—
Bank-owned life insurance	80,915		—		80,915		—
Servicing asset	3,113		—		3,113		—
Equity securities without readily determinable fair value	3,575		N/A		N/A		N/A
FHLB and FRB stock	68,348		N/A		N/A		N/A

Financial liabilities:
Deposits	$	5,894,350	$	—	$	5,692,217	$	—
Advances from FHLB	677,870		—		708,692		—
Accrued interest payable	5,893		—		5,893		—
Subordinated debentures and subordinated notes	145,571		—		145,571		—
Securities sold under agreement to repurchase	2,353		—		2,353		—

(1) Loans held for sale primarily represent mortgage loans held for sale that are carried at lower of cost or market.

(2) Loans held for investment includes MW and is carried at amortized cost.

Off-Balance Sheet Loan Commitments (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of the Approximate Amounts of Financial Instruments with Off-balance Sheet Risk

The following table sets forth the approximate amounts of these financial instruments as of December 31, 2020 and 2019:


	December 31,
	2020		2019
Commitments to extend credit	$	2,743,571	$	1,602,891
Mortgage warehouse commitments	354,603		347,459
Standby and commercial letters of credit	44,427		27,196
	$	3,142,601	$	1,977,546

Schedule of Allowance For Unfunded Commitments


	December 31,
	2020		2019
Beginning balance for allowance for credit losses on unfunded commitments	$	878	$	878
Impact of CECL adoption	840		—
Provision for credit losses on unfunded commitments	9,029		—
Ending balance of allowance for credit losses on unfunded commitments	$	10,747	$	878

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Balance Sheet

The notional amounts and estimated fair values as of December 31, 2020 and December 31, 2019 were as shown in the table below.


	December 31, 2020						December 31, 2019
			Estimated Fair Value						Estimated Fair Value
	Notional Amount		Asset Derivative		Liability Derivative		Notional Amount		Asset Derivative		Liability Derivative
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on borrowing advances	$	500,000	$	17,543	$	—	$	—	$	—	$	—
Interest rate swap on money market deposit account payments	250,000		—		2,255		—		—		—
Commercial loan interest rate floor	—		—		—		275,000		3,353		—
Total derivatives designated as hedging instruments	$	750,000	$	17,543	$	2,255	275,000		3,353		—

Derivatives not designated as hedging instruments:
Financial institution counterparty:
Interest rate swaps	$	303,918	$	—	$	11,666	$	222,394	$	105	$	4,736
Interest rate caps and collars	41,916		1		—		90,093		11		—
Commercial customer counterparty:
Interest rate swaps	303,918		10,937		—		222,394		4,393		84
Interest rate caps and collars	41,916		—		1		90,093		—		11
Total derivatives not designated as hedging instruments	$	691,668	$	10,938	$	11,667	$	624,974	$	4,509	$	4,831
Offsetting derivative assets/liabilities			1		1				(2,895)		(2,895)
Total derivatives	$	1,441,668	$	28,482	$	13,923	$	899,974	$	4,967	$	1,936

Derivative Instruments, Gain (Loss)

Pre-tax gain (loss) included in the Consolidated Statements of Income and related to derivative instruments for the years ended December 31, 2020 and 2019 was as follows:


	For the Year Ended December 31, 2020						For the Year Ended December 31, 2019
	Net gain (loss) recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location of gain (loss) reclassified from accumulated other comprehensive income into income		Net gain (loss) recognized in other comprehensive income on derivative		Gain (loss) reclassified from accumulated other comprehensive income into income		Location of gain (loss) reclassified from accumulated other comprehensive income into income
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on borrowing advances	$	13,859	$	—	Interest Expense		$	—	$	—	Interest Expense
Interest rate swap on money market deposit account payments	(1,781)		(605)		Interest Expense		—		—		Interest Expense
Commercial loan interest rate floors	(813)		1,937		Interest Income		1,497		(808)		Interest Income
Total	$	11,265	$	1,332			$	1,497	$	(808)


					Net Gain recognized in other noninterest income						Loss recognized in other noninterest income
Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars					$	2,481					$	550

Schedule of Derivative Instruments Outstanding

The following is a summary of the interest rate swaps outstanding as of December 31, 2020 and December 31, 2019.


	December 31, 2020
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating	$	303,918	3.14% - 8.470%	LIBOR 1 month + —% - 5.00% PRIME H15 - 25	Wtd. Avg. 4.1 years	$	(11,666)
Interest rate caps and collars	$	41,916	2.500% / 3.000%	LIBOR 1 month + —%	Wtd. Avg. 1.6 years	$	1

Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	303,918	3.14% - 8.470%	LIBOR 1 month + —% - 5.00% PRIME H15 - 25	Wtd. Avg. 4.1 years	$	10,937
Interest rate caps and collars	$	41,916	3.000% / 5.000%	LIBOR 1 month + —% - 2.5%	Wtd. Avg. 1.6 years	$	(1)


	December 31, 2019
	Notional Amount		Fixed Rate	Floating Rate	Maturity	Fair Value
Non-hedging derivative instruments:
Customer interest rate derivative:
Interest rate swaps - receive fixed/pay floating	$	222,394	2.944% - 8.470%	LIBOR 1 month + —% - 5.00% PRIME H15 - 25	Wtd. Avg. 3.3 years	$	(4,632)
Interest rate caps and collars	$	90,093	2.430% / 5.800%	LIBOR 1 month + —% - 3.75%	Wtd. Avg. 1.5 years	$	11

Correspondent interest rate derivative:
Interest rate swaps - pay fixed/receive floating	$	222,394	2.944% - 8.470%	LIBOR 1 month + —% - 5.00% PRIME H15 - 25	Wtd. Avg. 3.3 years	$	4,309
Interest rate caps and collars	$	90,093	3.000% / 5.800%	LIBOR 1 month + — - 3.75%	Wtd. Avg. 1.5 years	$	(11)

Share-based Payment Arrangement [Abstract]

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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+ Details

Stock and Incentive Plans (Tables)

12 Months Ended

Dec. 31, 2020

Summary of option activity

A summary of the status of options granted under the 2010 Incentive Plan at December 31, 2020, 2019 and 2018 and changes during the years then ended is presented below:


	2010 Incentive Plan
	Nonperformance-based stock options
	Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2017	305,000	$	10.16	3.59 years



Exercised	(30,000)	10.61
Outstanding at December 31, 2018	275,000	$	10.12	2.39 years



Exercised	(17,500)	10.24
Outstanding at December 31, 2019	257,500	$	10.28	1.37 years



Exercised	(237,500)	10.12
Outstanding and exercisable at December 31, 2020	20,000	$	10.09	1.06 years	$	374

A summary of the status of the Company’s stock options under the 2019 Amended Plan as of December 31, 2020, 2019 and 2018, and changes during the years then ended, is as follows:


	2019 Amended Plan
	Nonperformance-based stock options
	Equity Awards						Liability Awards
	Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value		Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2017	330,723	$	22.71	8.86 years			—	—		—
Granted	137,576	28.04					—	—
Forfeited	(4,083)	27.59					—	—

Exercised	(14,696)	15.29					—	—
Outstanding at December 31, 2018	449,520	$	24.47	8.24 years			—	$	—	—
Granted	200,561	22.72					253,633	21.38
Conversion to equity awards	253,633	21.38					(253,633)	21.38
Forfeited	(41,336)	25.51					—	—

Exercised	(12,610)	15.42					—	—
Outstanding at December 31, 2019	849,768	$	23.61	8.24 years			—	—		—
Granted	185,025	26.73					—	—

Forfeited	(25,053)	27.37					—	—

Exercised	(33,939)	19.10					—	—
Outstanding at December 31, 2020	975,801	$	24.26	7.45 years	$	2,422	—	—		—	$	—
Options exercisable at December 31, 2020	491,704	$	24.25	6.40 years	$	1,199	—	—		—	$	—
Weighted average fair value of options granted during the period		$	6.37					$	—

A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of December 31, 2020 and 2019 changes during the years then ended is as follows:


	Veritex (Green) 2014 Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2019	—	$	—
Converted in acquisition of Green	304,778	15.41
Granted	211,793	21.38
Forfeited	(12,673)	13.17

Exercised	(116,929)	13.60
Outstanding at December 31, 2019	386,969	19.30
Granted	31,075	29.13
Forfeited	(30,711)	20.92
Exercised	(35,333)	19.42
Outstanding at December 31, 2020	352,000	$	19.99	6.97 years	$2,124
Options exercisable at December 31, 2020	209,844	$	17.89	6.11 years	$1,642
Weighted average fair value of options granted during the period		$	9.56


	Green 2010 Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2019	—	$	—
Converted in acquisition of Green	768,628	10.73

Forfeited	(6,241)	13.69

Exercised	(190,652)	10.93
Outstanding at December 31, 2019	571,735	10.64


Exercised	(440,652)	10.35
Outstanding and exercisable at December 31, 2020	131,083	$	11.60	4.90 years	$1,843


	Green 2006 Plan
	Non-performance Based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2019	—	$	—
Converted in acquisition of Green	11,850	10.45



Exercised	(11,850)	10.45
Outstanding at December 31, 2019 and 2020	—	—

Summary of status of the Company's restricted shares or restricted stock units

A summary of the status of the restricted stock units under the 2010 Incentive Plan as of December 31, 2020, 2019, and 2018 and changes during the years is presented below:


	2010 Incentive Plan
	Nonperformance-based restricted stock units
	Shares Underlying Options	Weighted Average Exercise Price
Outstanding at December 31, 2017	24,250	$	13.19

Forfeited	(500)	10.85
Vested into shares	(23,750)	12.14
Outstanding at December 31, 2018	—	$	—



Outstanding at December 31, 2019	—	—



Outstanding at December 31, 2020	—	$	—


	2019 Amended Plan
	Nonperformance-based restricted stock units
	Equity Awards			Liability Awards
	Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2017	150,722	$	13.29	—	$	—
Granted	60,650	29.27		—	—
Vested into shares	(73,988)	24.44		—	—
Forfeited	(3,929)	26.29		—	—
Outstanding at December 31, 2018	133,455	$	19.67	—	$	—
Granted	127,459	22.44		165,739	21.38
Conversion to equity awards	165,739	21.38		(165,739)	21.38
Vested into shares	(250,965)	22.29		—	—

Outstanding at December 31, 2019	175,688	$	21.65	—	$	—
Granted	360,400	20.38		—	—

Vested into shares	(93,377)	24.73		—	—
Forfeited	(1,579)	29.13		—	—
Outstanding at December 31, 2020	441,132	$	20.39	—	$	—


	2019 Amended Plan
	Performance-based restricted stock units
	Equity Awards			Liability Awards
	Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2017	53,594	$	17.68	—	$	—
Granted	40,269	27.59		—	—
Vested into shares	(28,109)	18.69		—	—
Forfeited	(1,766)	27.59		—	—
Outstanding at December 31, 2018	63,988	$	21.28	—	$	—
Granted	38,746	22.53		32,249	21.38
Conversion to equity awards	32,249	21.38		(32,249)	21.38
Vested into shares	(51,284)	25.31		—	—
Forfeited	(19,972)	21.38		—	—
Outstanding at December 31, 2019	63,727	$	22.76	—	$	—
Granted	39,398	25.94		—	—

Vested into shares	(1,841)	19.69		—	—
Forfeited	(1,089)	19.69		—	—
Outstanding at December 31, 2020	100,195	$	23.20	—	$	—


	Veritex (Green) 2014 Plan
	Non-performance Based Restricted Stock Units
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2019	—	$	—
Granted	116,250	21.38


Outstanding at December 31, 2019	116,250	21.38
Granted	93,918	21.36
Vested into shares	(38,744)	21.38
Forfeited	(15,237)	23.62
Outstanding at December 31, 2020	156,187	$	22.64


	Veritex (Green) 2014 Plan
	Performance Based Restricted Stock Units
	Units	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2019	—	$	—
Granted	26,145	21.38

Forfeited	(825)	21.38
Outstanding at December 31, 2019	25,320	$	21.38
Granted	8,531	25.94

Forfeited	(3,123)	19.69
Outstanding at December 31, 2020	30,728	$	21.43

Schedule of employee stock purchase plan activity

A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2010 Incentive Plan as of December 31, 2020, 2019 and 2018 is presented below:


	Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31,
	2020		2019		2018
Nonperformance-based stock options exercised	$	6,579	$	454	$	803
Nonperformance-based restricted stock units vested	—		—		713

A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2019 Amended Plan as of December 31, 2020, 2019 and 2018 is presented below:


	Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31,
	2020		2019	2018
Nonperformance-based stock options exercised	$	954	334	383
Nonperformance-based restricted stock units vested	2,529		6,113	2,128
Performance-based restricted stock units vested	36		1,089	745


	Fair Value of Options Exercised or Restricted Stock Units Vested in the year ended December 31,
	2020		2019
Non-performance-based stock options exercised	$	1,021	$	3,054
Non-performance-based restricted stock units vested	828		—

A summary of the fair value of the Company’s stock options exercised under the Green 2010 Plan during the year ended December 31, 2020 and 2019 is presented below:


	Fair Value of Options Exercised in the year ended December 31,
	2020		2019
Non-performance-based stock options exercised	$	12,231	$	5,554

A summary of the fair value of the Company’s stock options exercised under the Green 2006 Plan during the year ended December 31, 2020 and 2019 is presented below:


	Fair Value of Options Exercised in the year ended December 31,
	2020		2019
Non-performance-based stock options exercised	$	—	$	345

Schedule of Vesting Percentages


	Vesting %
Below the 24.9th percentile of Peer Group TSR	—	%
Within the 25th to 49.9th percentile of Peer Group TSR	50	%
Within the 50th to 74.9th percentile of Peer Group TSR	100	%
At or above the 75th percentile of Peer Group TSR	150	%

Schedule of assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model

The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions used for the grants:

For the Year Ended December 31,

2020

2019

2018

Dividend yield

2.33% to 5.14%

1.73% to 2.01%

—%

Expected life

5.00 to 6.51 years

4.52 to 7.51 years

5.00 to 7.50 years

Expected volatility

27.49% to 42.37%

28.85% to 29.65%

27.87% to 37.55%

Risk-free interest rate

0.36% to 1.76%

1.53% to 2.51%

1.06% to 2.94%

Capital Requirements and Restrictions on Retained Earnings (Tables)

12 Months Ended

Dec. 31, 2020