Cobiz Financial (COBZ) 10-Q 27 Apr 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 23, 2018
Document And Entity Information
Entity Registrant Name	COBIZ FINANCIAL INC
Entity Central Index Key	1,028,734
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		42,366,023

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 53,866	$ 78,735
Interest-bearing deposits and federal funds sold	13,814	1,445
Total cash and cash equivalents	67,680	80,180
Investment securities available for sale (cost of $183,178 and $164,012, respectively)	184,389	166,753
Investment securities held to maturity (fair value of $381,947 and $360,071, respectively)	386,908	362,544
Other investments	10,954	10,119
Total investments	582,251	539,416
Loans - net of allowance for loan losses of $36,796 and $37,941, respectively	3,047,646	3,107,622
Intangible assets - net of amortization of $7,760 and $7,704, respectively	671	726
Bank-owned life insurance	55,031	55,040
Premises and equipment - net of depreciation of $38,176 and $37,459, respectively	10,110	10,827
Accrued interest receivable	13,506	14,150
Deferred income taxes, net	12,870	13,114
Other real estate owned - net of valuation allowance of $8,666 and $8,666, respectively	4,979	5,079
Other	20,763	20,118
TOTAL ASSETS	3,815,507	3,846,272
Liabilities
Noninterest-bearing demand	1,450,789	1,473,650
Interest-bearing demand	736,929	737,934
Money market	866,108	875,936
Savings	22,976	21,453
Certificates of deposits	102,964	116,247
Total deposits	3,179,766	3,225,220
Securities sold under agreements to repurchase	42,268	52,959
Other short-term borrowings	97,818	77,640
Accrued interest and other liabilities	25,715	29,808
Subordinated notes payable - net of unamortized discount and issuance costs of $783 and $805, respectively	59,217	59,195
Junior subordinated debentures	72,166	72,166
TOTAL LIABILITIES	3,476,950	3,516,988
Commitments and contingencies
Shareholders' Equity
Preferred stock, $.01 par value; 2,000,000 shares authorized; none issued and outstanding
Common stock, $.01 par value; 100,000,000 shares authorized; 42,366,023 and 42,217,318 issued and outstanding, respectively	420	418
Additional paid-in capital	203,055	202,111
Retained earnings	136,912	126,896
Accumulated other comprehensive loss, net of income tax of $(564) and $(85), respectively	(1,830)	(141)
TOTAL SHAREHOLDERS' EQUITY	338,557	329,284
TOTAL LIABILITIES AND EQUITY	$ 3,815,507	$ 3,846,272

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Condensed Consolidated Financial Statements
Investment securities available for sale, cost	$ 183,178	$ 164,012
Investment securities held to maturity, fair value	381,947	360,071
Allowance for loan losses	36,796	37,941
Intangible assets, amortization	7,760	7,704
Premises and equipment, depreciation	38,176	37,459
Other real estate owned assets, allowance	8,666	8,666
Subordinated notes payable, unamortized discount and issuance costs	$ 783	$ 805
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	42,366,023	42,217,318
Common stock, shares outstanding	42,366,023	42,217,318
Accumulated other comprehensive income, tax	$ (564)	$ (85)

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
INTEREST INCOME:
Interest and fees on loans	$ 33,773	$ 29,391
Interest and dividends on investment securities:
Taxable securities	3,521	3,198
Nontaxable securities	244	288
Dividends on securities	160	148
Interest on federal funds sold and other	79	56
Total interest income	37,777	33,081
INTEREST EXPENSE:
Interest on deposits	987	987
Interest on short-term borrowings and securities sold under agreements to repurchase	347	184
Interest on subordinated debentures and notes payable	1,834	1,832
Total interest expense	3,168	3,003
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES	34,609	30,078
Provision for loan losses	(325)	607
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	34,934	29,471
NONINTEREST INCOME:
Service charges	1,655	1,745
Investment advisory income	1,655	1,531
Insurance income	3,459	3,122
Other income	2,192	1,930
Total noninterest income	8,961	8,328
NONINTEREST EXPENSE:
Salaries and employee benefits	19,747	19,120
Occupancy expenses, premises and equipment	3,711	3,605
Amortization of intangibles	56	150
FDIC and other assessments	424	250
Other real estate owned and loan workout costs	71	89
Net gain on securities, other assets and other real estate owned	(120)	(345)
Other expense	4,681	4,245
Total noninterest expense	28,570	27,114
INCOME BEFORE INCOME TAXES	15,325	10,685
Provision for income taxes	2,344	2,071
NET INCOME	$ 12,981	$ 8,614
EARNINGS PER COMMON SHARE:
Basic earnings per share	$ 0.31	$ 0.21
Diluted earnings per share	$ 0.31	$ 0.20

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net income	$ 12,981	$ 8,614
Cash flow hedges:
Net unrealized loss	(616)	(72)
Reclassification to operations	257	109
Total	(359)	37
Total other comprehensive income (loss) items	(2,197)	1,406
Cash flow hedges:
Net unrealized loss	(151)	(27)
Reclassification to operations	63	42
Total tax expense (benefit)	(88)	15
Total income tax provision (benefit)	(538)	531
Other comprehensive income (loss), net of tax	(1,659)	875
Comprehensive income	11,322	9,489
Available for sale securities
Other comprehensive income (loss) items:
Net unrealized gain (loss)	(1,530)	1,820
Reclassification to operations		3
Total	(1,530)	1,823
Income tax provision:
Net unrealized gain (loss)	(375)	688
Reclassification to operations		1
Total tax expense (benefit)	(375)	689
Held to maturity securities
Other comprehensive income (loss) items:
Reclassification to operations	(308)	(454)
Total	308	454
Income tax provision:
Reclassification to operations	(75)	(173)
Total tax expense (benefit)	$ (75)	$ (173)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 12,981	$ 8,614
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	884	1,473
Provision for loan losses	(325)	607
Stock-based compensation	767	985
Deferred income taxes	787	2,104
Bank-owned life insurance	(398)	(349)
Net gain on securities, other assets and other real estate owned		(345)
Other operating activities, net	(377)	40
Changes in operating assets and liabilities:
Other assets	3,021	1,358
Other liabilities	(5,188)	(6,199)
Net cash provided by operating activities	12,152	8,288
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of other investments	(6,718)	(4,440)
Proceeds from other investments	5,961	2,296
Purchase of investment securities available for sale	(24,970)	(53,336)
Purchase of investment securities held to maturity	(41,079)	(41,319)
Maturity, call and principal payments on investment securities available for sale	5,745	17,500
Maturity, call and principal payments on investment securities held to maturity	16,035	16,920
Net proceeds from sale of loans, OREO and repossessed assets	100
Loan originations and repayments, net	59,233	(52,738)
Purchase of premises and equipment	(211)	(1,046)
Other investing activities, net	47	657
Net cash provided by (used in) investing activities	14,143	(115,506)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in demand, money market and savings accounts	(32,171)	30,303
Net decrease in certificates of deposits	(13,283)	(9,985)
Net increase in short-term borrowings	20,178	48,770
Net increase (decrease) in securities sold under agreements to repurchase	(10,691)	32,186
Proceeds from issuance of common stock	380	608
Taxes paid in net settlement of restricted stock	(886)	(1,105)
Dividends paid on common stock	(2,322)	(2,078)
Net cash provided by (used in) financing activities	(38,795)	98,699
NET DECREASE IN CASH AND CASH EQUIVALENTS	(12,500)	(8,519)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	80,180	96,050
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 67,680	$ 87,531

Nature of Operations and Signif

Nature of Operations and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Nature of Operations and Significant Accounting Policies
Nature Of Operations and Significant Accounting Policies	1. Nature of Operations and Significant Accounting Policies The accompanying unaudited Condensed Consolidated Financial Statements of CoBiz Financial Inc. and its wholly-owned subsidiaries: CoBiz Bank; CoBiz Insurance, Inc.; and CoBiz IM, Inc.; all collectively referred to as the “Company”, “CoBiz”, “we”, “us”, or “our” conform to GAAP in the United States of America for interim financial information and prevailing practices within the banking industry. The operations of the Company are comprised predominantly of the Bank, which operates in its Colorado market areas under the name Colorado Business Bank and in its Arizona market areas under the name Arizona Business Bank. Organization — The Bank is a commercial banking institution with seven locations in the Denver metropolitan area; one in Boulder; one near Vail; one in Colorado Springs; one in Fort Collins; and four in the Phoenix metropolitan area. As a state chartered bank, deposits are insured by the Bank Insurance Fund of the FDIC and the Bank is subject to supervision, regulation and examination by the Federal Reserve, Colorado Division of Banking and the FDIC. Pursuant to such regulations, the Bank is subject to special restrictions, supervisory requirements and potential enforcement actions. CoBiz Insurance, Inc. provides commercial and personal P&C insurance brokerage, risk management consulting services to small and medium-sized businesses and individuals and provides employee benefits consulting, insurance brokerage and related administrative support to employers. CoBiz IM provides wealth planning and investment management to institutions and individuals through its SEC-registered investment advisor subsidiary, CoBiz Wealth, LLC. The following is a summary of certain of the Company’s significant accounting and reporting policies. Basis of Presentation — The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, the instructions to Form 10-Q and, where applicable, prevailing practices within the financial services industry. The December 31, 2017 Condensed Consolidated balance sheet has been derived from the audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2017. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting only of normally recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2018. In preparing the consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. These Condensed Consolidated Financial Statements and notes thereto should be read in conjunction with, and are qualified in their entirety by, the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC. The Condensed Consolidated Financial Statements include entities in which the Parent has a controlling financial interest. These entities include: the Bank; CoBiz Insurance, Inc.; and CoBiz IM. Intercompany balances and transactions are eliminated in consolidation. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a VIE. The voting interest model is used when the equity investment is sufficient to absorb the expected losses and the equity investment has all of the characteristics of a controlling financial interest. Under the voting interest model, the party with the controlling voting interest consolidates the legal entity. The VIE model is used when any of the following conditions exist: the equity investment at risk is not sufficient to finance the entity’s activities without additional subordinated financial support; the holders of the equity investment do not have a controlling voting interest; or the holders of the equity investment are not obligated to absorb the expected losses or residual returns of the legal entity. An enterprise is considered to have a controlling financial interest of a VIE if it has both the power to direct the activities that most significantly impact economic performance and the obligation to absorb losses, or receive benefits, that are significant to the VIE. An enterprise that has a controlling financial interest is considered the primary beneficiary and must consolidate the VIE. The Company was not the primary beneficiary of a VIE at March 31, 2018 or December 31, 2017. Certain reclassifications have been made to prior years’ Condensed Consolidated Financial Statements and related notes to conform to the current year presentation. Cash and Cash Equivalents — The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents include amounts that the Company is required to maintain at the Federal Reserve Bank of Kansas City to meet certain regulatory reserve balance requirements. The following table shows supplemental disclosures of certain cash and noncash items: Three months ended March 31, (in thousands) 2018 2017 Cash paid during the period for: Interest $ 2,550 $ 2,210 Income taxes - 1,339 Investments — The Company classifies its investment securities as held to maturity, available for sale or trading, according to management’s intent. Investment security transactions are recorded on a trade date basis. At March 31, 2018 and December 31, 2017, the Company had no trading securities. Available for sale securities consist of bonds, notes and debentures (including corporate debt and TPS) not classified as held to maturity securities and are reported at fair value as determined by quoted market prices. Unrealized holding gains and losses, net of tax, are reported as a net amount in AOCI until realized. Investment securities held to maturity consist of residential MBS, bonds, notes and debentures for which the Company has the positive intent and ability to hold to maturity and are reported at cost, adjusted for amortization or accretion of premiums and discounts. Premiums and discounts, adjusted for prepayments as applicable, are recognized in interest income. Other than temporary declines in the fair value of individual investment securities held to maturity and available for sale are charged against earnings. Gains and losses on disposal of investment securities are determined using the specific-identification method. OTTI on debt securities is separated between the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between a security’s amortized cost basis and the discounted present value of expected future cash flows. The amount due to all other factors is recognized in OCI. Bank Stocks — FHLB, Federal Reserve and other correspondent bank stocks are accounted for under the cost method. Loans Held for Investment — Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balance adjusted for any charge-offs, the ALLL, deferred fees and costs on originated loans, and unamortized premiums or discounts on purchased loans. Interest is accrued and credited to income daily based on the principal balance outstanding. Loans that are 30 days or more past due based on payments received and applied to the loan are considered delinquent, excluding loans that are cash-secured. The accrual of interest income is generally discontinued when a loan becomes 90 days past due as to principal and interest. When a loan is designated as nonaccrual, the current period’s accrued interest receivable is charged against current earnings while any portions relating to prior periods are charged against the ALLL. Interest payments received on nonaccrual loans are generally applied to the principal balance of the loan. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured and there has been demonstrated performance in accordance with contractual terms. The Company may elect to continue the accrual of interest when the loan is in the process of collection and the realizable value of collateral is sufficient to cover the principal balance and accrued interest. Loans Held for Sale — Loans held for sale include loans the Company has demonstrated its ability and intent to sell. Loans held for sale are primarily nonperforming loans. Loans held for sale are carried at the lower of cost or fair value and are evaluated on a loan-by-loan basis. Impaired Loans — Impaired loans, with the exception of groups of smaller-balance homogenous loans that are collectively evaluated for impairment, are defined as loans for which, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays of less than 90 days and monthly payment shortfalls of less than 10% of the contractual payment on a consumer loan generally are not classified as impaired if the Company ultimately expects to recover its full investment. The Company determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Loans that are deemed to be impaired are evaluated in accordance with ASC Topic 310-10-35, Receivables – Subsequent Measurement (ASC 310) and ASC Topic 450-20, Loss Contingencies (ASC 450). Included in impaired loans are troubled debt restructurings. A troubled debt restructuring is a formal restructure of a loan where the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower. The concessions may be granted in various forms, including but not limited to reduction in the stated interest rate, reduction in the loan balance or accrued interest, or extension of the maturity date. Troubled debt restructurings are evaluated in accordance with ASC Topic 310-40, Troubled Debt Restructurings by Creditors. Interest payments on impaired loans are typically applied to principal unless collectability of principal is reasonably assured. Loans that have been modified in a formal restructuring are typically returned to accrual status when there has been a sustained period of performance (generally six months) under the modified terms, the borrower has shown the ability and willingness to repay and the Company expects to collect all amounts due under the modified terms. Loan Origination Fees and Costs — Loan fees and certain costs of originating loans are deferred and the net amount is amortized over the contractual life of the related loans in accordance with ASC Topic 310-20, Nonrefundable Fees and Other Costs. Allowance for Loan and Lease Losses — The ALLL is established as losses are estimated to have occurred through a provision for loan losses charged against earnings. Loan losses are charged against the ALLL when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the ALLL. The ALLL is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as new information becomes available. Allowance for Credit Losses — The allowance for credit losses is established as losses are estimated to have occurred through a provision for credit losses charged to earnings. The allowance for credit losses represents management’s recognition of a separate reserve for off-balance sheet loan commitments and letters of credit. While the ALLL is recorded as a contra-asset to the loan portfolio on the Condensed Consolidated Balance Sheets, the allowance for credit losses is recorded under the caption “Accrued interest and other liabilities”. Although the allowances are presented separately on the balance sheets, any losses incurred from credit losses would be reported as a charge-off in the ALLL, as any loss would be recorded after the off-balance sheet commitment had been funded. BOLI – The Bank has invested in BOLI policies to fund certain future employee benefit costs. The policies are recorded at net realizable value. Changes in the amount that could be realized, including death benefits in excess of the carrying amount, are recorded in the Condensed Consolidated Statements of Income as “Other income”. Derivative Instruments — Derivative financial instruments are accounted for at fair value. The Company utilizes interest rate swaps to hedge a portion of its exposure to interest rate changes. These instruments are accounted for as cash flow hedges, as defined by ASC Topic 815, Derivatives and Hedging (ASC 815). The Company also uses interest rate swaps to hedge against adverse changes in fair value on fixed-rate loans. These instruments are accounted for as fair value hedges in accordance with ASC 815. The net cash flows from the cash flow and fair value hedges are classified in operating activities within the Condensed Consolidated Statements of Cash Flows with the hedged items. The Company also offers an interest-rate hedge program that includes various derivative products, including swaps, to customers of the Bank. The fair value amounts recognized for derivative instruments and the fair value amounts recognized for the right to reclaim or obligation to return cash collateral are not offset when represented under a master netting arrangement. The Company also uses foreign currency forward contracts (FX forwards) giving it the right to sell underlying currencies at specified future dates and predetermined prices in order to mitigate foreign exchange risk associated with long positions. FX forwards are carried at fair value with changes in value recognized in current earnings as the contracts are not designated as hedging instruments. Fair Value Measurements — The Company measures financial assets, financial liabilities, nonfinancial assets and nonfinancial liabilities pursuant to ASC Topic 820, Fair Value Measurement and Disclosures (ASC 820). ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2018
Recent Accounting Pronouncements
Recent Accounting Pronouncements	2. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-9 (ASU 2014-09), Revenue from Contracts with Customers. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer, as well as enhanced disclosure requirements. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 to fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2017. In March 2016, the FASB issued ASU 2016-08 which clarified the revenue recognition implementation guidance on principal versus agent considerations and is effective during the same period as ASU 2014-09. In April 2016, the FASB issued ASU 2016-10 which clarified the revenue recognition guidance regarding the identification of performance obligations and the licensing implementation and is effective during the same period as ASU 2014-09. In May 2016, the FASB issued ASU 2016-12 which narrowly amended the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax and transition. ASU 2016-12 is effective during the same period as ASU 2014-09. Effective January 2018, the Company adopted the aforementioned ASUs using the modified retrospective method. In evaluating the effects of these ASUs on its financial statements and disclosures, the Company has determined the following: · The primary revenue lines subject to these ASUs are deposit service charges, investment advisory income and insurance income, which represented 16% of total operating revenue in 2017. · The adoption of these ASUs did not have a material impact on the Company’s financial statements. However, the Company has expanded disclosures on the nature, amount and timing of revenue from the impacted revenue lines. See Note 12 for additional information. Effective January 2018, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). The main objective of ASU 2016-01 is to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Some of the amendments in ASU 2016-01 include the following: 1) Require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) Simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and 4) Require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value. For public business entities, the amendments of ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-01, through application of a cumulative effect adjustment to retained earnings, did not have a material impact on the consolidated financial statements. See Note 10 for fair value measurement disclosures. Effective January 2018, the Company adopted ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15), regarding how certain cash receipts and cash payments are presented and classified in the statements of cash flows. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The Company implemented ASU 2016-15 during the quarter ended March 31, 2018 with application of the retrospective method and cumulative earnings approach for equity method investments . The adoption of ASU 2016-15 did not have a material impact on the consolidated financial statements. Effective January 2018, the Company adopted ASU 2017-09, Compensation – Stock Compensation (Topic 718), Scope of Modification Accounting (ASU 2017-09). ASU 2017-09 clarifies when changes to the terms and conditions of share-based payment awards must be treated as modifications. Specifically, the new guidance permits companies to make certain changes to awards without accounting for them as modifications. The adoption of ASU 2017-09 did not have a material impact on the consolidated financial statements . In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from AOCI (ASU 2018-02). ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects of the application of the TCJA. ASU 2018-02 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018, and early adoption is permitted. The Company early adopted and applied the provisions of ASU 2018-02 during the quarter ended March 31, 2018. The reclassification from AOCI to retained earnings did not have a material effect on the Company’s financial statements or disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (ASU 2016-02). ASU 2016-02 is intended to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about lease arrangements. For public business entities, this ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018. The Company is currently evaluating the effects of ASU 2016-02 on its financial statements and disclosures by reviewing all existing lease arrangements. Preliminarily, the Company expects the primary impact of ASU 2016-02 will relate to its office locations, which are designated as operating leases. The Company has future operating lease obligations for its locations of $30.4 million that are being evaluated as potential lease assets and liabilities, as defined in ASU 2016-02. The Company has formed a lease implementation team which includes members of accounting, facilities and operations to review lease contracts and the requirements of ASU 2016-02. The implementation team has evaluated third party software solutions to assist with the implementation of ASU 2016-02. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The objective of ASU 2016-13 is to provide financial statement users with decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13 includes provisions that require financial assets measured at amortized cost (such as loans and held to maturity (HTM) debt securities) to be presented at the net amount expected to be collected. This will be accomplished through recognition of an estimate of all current expected credit losses. The estimate will include forecasted information for the timeframe that an entity is able to develop reasonable and supportable forecasts. This is a change from the current practice of recognizing incurred losses based on the probable initial recognition threshold under current GAAP. In addition, credit losses on available for sale (AFS) debt securities will be recorded through an allowance for credit losses rather than as a write-down. Under ASU 2016-13, an entity will be able to record reversals of credit losses in current period income when the estimate of credit losses declines, whereas current GAAP prohibits reflecting those improvements in current period earnings. ASU 2016-13 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2019, and early adoption is permitted for fiscal years, including interim periods, beginning after December 15, 2018. ASU 2016-13 will be applied through a cumulative effect adjustment to retained earnings (modified-retrospective approach), except for debt securities for which an other-than-temporary impairment had been recognized before the effective date. A prospective transition approach is required for these debt securities. The Company is currently evaluating the effects of ASU 2016-13 on its financial statements and disclosures. While the effects cannot yet be quantified, the Company expects ASU 2016-13 to add complexity and costs to its current credit loss evaluation process. In planning for the implementation of ASU 2016-13, the Company has formed a CECL implementation team that includes the CFO, Chief Credit Officer and members of credit, accounting, finance, and information technology. The team meets on a weekly basis and is currently evaluating data requirements and loss methodologies . In the first quarter of 2018, the implementation team finalized its recommendation on a software solution and is currently negotiating a contract. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20) (ASU 2017-08). ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium. Prior to the issuance of this guidance, premiums were amortized as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 requires premiums on purchased callable debt securities that have explicit, noncontingent call features that are callable at fixed prices to be amortized to the earliest call date. There are no accounting changes for securities held at a discount. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018, and early adoption is permitted. ASU 2017-08 will be applied through a cumulative effect adjustment through equity (modified-retrospective approach). The Company is currently evaluating the effects of ASU 2017-08 on its financial statements and disclosures. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018, and early adoption is permitted. ASU 2017-12 requires the modified-retrospective approach for adoption. The Company is currently evaluating the effects of ASU 2017-12 on its financial statements and disclosures and is considering early adoption in 2018.

Earnings per Common Share and D

Earnings per Common Share and Dividends Declared per Common Share	3 Months Ended
	Mar. 31, 2018
Earnings per Common Share and Dividends Declared per Common Share
Earnings per Common Share and Dividends Declared per Common Share	3. Earnings per Common Share and Dividends Declared per Common Share Earnings per common share is calculated based on the two-class method prescribed in ASC 260, Earnings per Share. The two-class method is an allocation of undistributed earnings to common stock and securities that participate in dividends with common stock. The Company’s restricted stock awards are considered participating securities since the recipients receive non-forfeitable dividends on unvested awards. The impact of participating securities is included in basic earnings per common share for the three months ended March 31, 2018 and 2017. Income allocated to common shares and weighted average shares outstanding used in the calculation of basic and diluted earnings per common share are as follows: Three months ended March 31, (in thousands, except share and per share amounts) 2018 2017 Net income available to common shareholders $ 12,981 $ 8,614 Dividends and undistributed earnings allocated to participating securities (113) (93) Earnings allocated to common shares (1) $ 12,868 $ 8,521 Weighted average common shares - issued 42,267,374 41,606,755 Average unvested restricted share awards (368,040) (445,315) Weighted average common shares outstanding - basic 41,899,334 41,161,440 Dilutive potential common shares 63,448 423,147 Weighted average common shares outstanding - diluted 41,962,782 41,584,587 Weighted average antidilutive securities outstanding (2) 24,661 10,544 Earnings per common share: Basic $ $ Diluted $ $ Dividends declared per share $ $ (1) Earnings allocated to common shareholders for basic earnings per common share under the two-class method may differ from earnings allocated for diluted earnings per common share when use of the treasury method results in greater dilution than the two-class method. (2) Antidilutive shares excluded from the diluted earnings per common share computation.

Investments

Investments	3 Months Ended
	Mar. 31, 2018
Investments
Investments	4. Investments The amortized cost and estimated fair values of investment securities are summarized as follows: At March 31, 2018 At December 31, 2017 Gross Gross Gross Gross Amortized unrealized unrealized Fair Amortized unrealized unrealized Fair (in thousands) cost gains losses value cost gains losses value Available for sale securities (AFS): Trust preferred securities $ 20,343 $ 1,886 $ 459 $ 21,770 $ 20,318 $ 1,870 $ 205 $ 21,983 Corporate debt securities 159,590 1,362 1,601 159,351 140,445 1,153 103 141,495 Municipal securities 3,245 26 3 3,268 3,249 41 15 3,275 Total AFS $ 183,178 $ 3,274 $ 2,063 $ 184,389 $ 164,012 $ 3,064 $ 323 $ 166,753 Held to maturity securities (HTM): Mortgage-backed securities $ 342,581 $ 89 $ 6,486 $ 336,184 $ 318,128 $ 118 $ 3,262 $ 314,984 Trust preferred securities 10,746 1,499 - 12,245 10,721 783 18 11,486 Municipal securities 33,581 44 107 33,518 33,695 73 167 33,601 Total HTM $ 386,908 $ 1,632 $ 6,593 $ 381,947 $ 362,544 $ 974 $ 3,447 $ 360,071 The amortized cost and estimated fair value of investments in debt securities at March 31, 2018, by contractual maturity are shown below. Expected maturities can differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Available for sale Held to maturity Amortized Fair Amortized Fair (in thousands) cost value cost value Due in one year or less $ 3,106 $ 3,102 $ 1,705 $ 1,699 Due after one year through five years 132,397 131,690 23,482 23,440 Due after five years through ten years 21,458 21,626 - - Due after ten years 26,217 27,971 19,140 20,624 Mortgage-backed securities - - 342,581 336,184 $ 183,178 $ 184,389 $ 386,908 $ 381,947 The Company uses investment securities to collateralize public and governmental deposits. Investment securities with an approximate fair value of $166.9 million and $164.4 million were pledged to secure these deposits of $126.4 million and $116.5 million at March 31, 2018 and December 31, 2017, respectively. Changes in interest rates and market liquidity may cause adverse fluctuations in the market price of securities resulting in temporary unrealized losses. In reviewing the realizable value of its securities in a loss position, the Company considered the following factors: (1) the length of time and extent to which the market had been less than cost; (2) the financial condition and near-term prospects of the issuer; (3) investment downgrades by rating agencies; and (4) whether it is more likely than not that the Company will have to sell the security before a recovery in value. When it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the security, and the fair value of the investment security is less than its amortized cost, an other-than-temporary impairment is recognized in earnings. For debt securities that are considered other-than-temporarily impaired and that the Company does not intend to sell and will not be required to sell prior to recovery of the amortized cost basis, an OTTI is recognized. OTTI is separated into the amount that is credit-related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between a security’s amortized cost basis and the discounted present value of expected future cash flows. The amount due to all other factors is recognized in other comprehensive income. The Company did not have any credit impaired securities at March 31, 2018 and December 31, 2017. There were 211 and 181 securities in the tables below at March 31, 2018 and December 31, 2017, respectively, in an unrealized loss position. March 31, 2018 Less than 12 months 12 months or greater Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) value loss value loss value loss AFS Trust preferred securities $ 697 $ 46 $ 6,768 $ 413 $ 7,465 $ 459 Corporate debt securities 116,742 1,591 970 10 117,712 1,601 Municipal securities 794 3 - - 794 3 Total AFS $ 118,233 $ 1,640 $ 7,738 $ 423 $ 125,971 $ 2,063 HTM Mortgage-backed securities $ 209,653 $ 3,755 $ 107,050 $ 2,731 $ 316,703 $ 6,486 Municipal securities 21,856 103 680 4 22,536 107 Total HTM $ 231,509 $ 3,858 $ 107,730 $ 2,735 $ 339,239 $ 6,593 December 31, 2017 Less than 12 months 12 months or greater Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) value loss value loss value loss AFS Trust preferred securities $ 700 $ 43 $ 7,020 $ 162 $ 7,720 $ 205 Corporate debt securities 40,068 94 1,216 9 41,284 103 Municipal securities 1,252 15 - - 1,252 15 Total AFS $ 42,020 $ 152 $ 8,236 $ 171 $ 50,256 $ 323 HTM Mortgage-backed securities $ 182,974 $ 1,457 $ 104,464 $ 1,805 $ 287,438 $ 3,262 Trust preferred securities - - 864 18 864 18 Municipal securities 20,445 163 684 4 21,129 167 Total HTM $ 203,419 $ 1,620 $ 106,012 $ 1,827 $ 309,431 $ 3,447 Other investments at March 31, 2018 and December 31, 2017, consisted of the following: March 31, December 31, (in thousands) 2018 2017 Bank stocks — at cost $ 8,780 $ 7,945 Investment in statutory trusts — equity method 2,174 2,174 Total $ 10,954 $ 10,119 Bank stocks consist primarily of stock in the FHLB, which is part of the Federal Home Loan Bank System. The purpose of the FHLB investment relates to maintenance of a borrowing base with the FHLB. FHLB stock holdings are largely dependent upon the Company’s liquidity position. To the extent the need for wholesale funding increases or decreases, the Company may purchase additional or sell excess FHLB stock, respectively. The Company evaluates impairment in these investments based on the ultimate recoverability of the par value. At March 31, 2018, the Company did not consider these investments to be other-than-temporarily impaired.

Loans

Loans	3 Months Ended
	Mar. 31, 2018
Loans
Loans	5. Loans The following disclosure reports the Company’s loan portfolio segments and classes. Segments are groupings of similar loans at a level which the Company has adopted systematic methods of documentation for determining its ALLL. Classes are a disaggregation of the portfolio segments. The Company’s loan portfolio segments are: · Commercial loans – Commercial loans consist of loans to small and medium-sized businesses in a wide variety of industries. The Bank’s areas of emphasis in commercial lending include, but are not limited to, loans to wholesalers, manufacturers, municipalities, construction and business services companies. Commercial loans are generally collateralized by inventory, accounts receivable, equipment, real estate and other commercial assets, and may be supported by other credit enhancements such as personal guarantees. Risk arises primarily due to a difference between expected and actual cash flows of the borrowers. However, the recoverability of the Company’s investment in these loans is also dependent on other factors primarily dictated by the type of collateral securing these loans. The fair value of the collateral securing these loans may fluctuate as market conditions change. In the case of loans secured by accounts receivable, the recovery of the Company’s investment is dependent upon the borrowers’ ability to collect amounts due from its customers. · Real estate - mortgage loans – Real estate mortgage loans include various types of loans for which the Company holds real property as collateral. Commercial real estate lending activity is typically restricted to owner-occupied properties or to investor properties that are owned by customers with a current banking relationship. The primary risks of real estate mortgage loans include the borrower’s inability to pay, material decreases in the value of the real estate that is being held as collateral and significant increases in interest rates, which may make the real estate mortgage loan unprofitable. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. · Construction and land loans – The Company originates loans to finance construction projects including one- to four-family residences, multifamily residences, commercial office, senior housing, and industrial projects. Residential construction loans are due upon the sale of the completed project and are generally collateralized by first liens on the real estate and have floating interest rates. Construction loans are considered to have higher risks due to construction completion and timing risk, and the ultimate repayment being sensitive to interest rate changes, governmental regulation of real property and the availability of long-term financing. Additionally, economic conditions may impact the Company’s ability to recover its investment in construction loans. Adverse economic conditions may negatively impact the real estate market which could affect the borrowers’ ability to complete and sell the project. Additionally, the fair value of the underlying collateral may fluctuate as market conditions change. The Company also originates loans for the acquisition and future development of land for residential building projects, as well as finished lots prepared to enter the construction phase. The primary risks include the borrower’s inability to pay and the inability of the Company to recover its investment due to a decline in the fair value of the underlying collateral. · Consumer loans – The Company provides a broad range of consumer loans to customers, including personal lines of credit, home equity loans, mortgage loans and automobile loans. Repayment of these loans is dependent on the borrowers’ ability to pay and the fair value of the underlying collateral. · Other loans – Other loans include lending products, such as taxable and tax exempt leasing, not defined as commercial, real estate, acquisition and development, construction, or consumer loans. The loan portfolio segments at March 31, 2018 and December 31, 2017 were as follows: (in thousands) At March 31, 2018 At December 31, 2017 Commercial $ 1,236,721 $ 1,250,356 Real estate - mortgage 1,248,908 1,250,423 Construction & land 230,719 266,081 Consumer 272,702 282,101 Other 97,628 98,916 Loans held for investment 3,086,678 3,147,877 Allowance for loan losses (36,796) (37,941) Unearned net loan fees (2,236) (2,314) Total net loans $ 3,047,646 $ 3,107,622 The Company routinely acquires participating interests in loans originated by other banks which are subsequently included in the loan portfolio. At March 31, 2018 and December 31, 2017, overdraft demand deposits totaling $0.2 million were reclassified from deposits to loans. The Company maintains a loan review program independent of the lending function that is designed to reduce and control risk in lending. It includes the continuous monitoring of lending activities with respect to underwriting and processing new loans, preventing insider abuse and timely follow-up and corrective action for loans showing signs of deterioration in quality. The Company also has a systematic process to evaluate individual loans and pools of loans within our loan portfolio. The Company maintains a loan grading system whereby each loan is assigned a grade between 1 and 8, with 1 representing the highest quality credit, 7 representing a nonaccrual loan where collection or liquidation in full is highly questionable and improbable, and 8 representing a loss that has been or will be charged-off. Grades are assigned based upon the degree of risk associated with repayment of a loan in the normal course of business pursuant to the original terms. Loans that are graded 5 or lower are categorized as non-classified credits while loans graded 6 and higher are categorized as classified credits. Loan grade changes are evaluated on a monthly basis. Loans above a certain dollar amount that are adversely graded are reported to the Special Assets Group Manager and the Chief Credit Officer along with current financial information, a collateral analysis and an action plan. The loan portfolio showing total non-classified and classified balances by loan class at March 31, 2018 and December 31, 2017 is summarized below: At March 31, 2018 (in thousands) Non-classified Classified Total Commercial Manufacturing $ 69,211 $ 7,368 $ 76,579 Finance and insurance 48,509 1,670 50,179 Healthcare 164,842 2,389 167,231 Real estate services 121,183 6,095 127,278 Construction 62,499 3,218 65,717 Public administration 255,454 534 255,988 Other 448,978 44,771 493,749 1,170,676 66,045 1,236,721 Real estate - mortgage Residential & commercial owner-occupied 477,346 11,137 488,483 Residential & commercial investor 759,847 578 760,425 1,237,193 11,715 1,248,908 Construction & land 230,719 - 230,719 Consumer 267,866 4,836 272,702 Other 96,288 1,340 97,628 Total loans held for investment $ 3,002,742 $ 83,936 $ 3,086,678 Unearned net loan fees (2,236) Net loans held for investment $ 3,084,442 At December 31, 2017 (in thousands) Non-classified Classified Total Commercial Manufacturing $ 82,275 $ 2,912 $ 85,187 Finance and insurance 40,796 1,722 42,518 Healthcare 161,162 2,623 163,785 Real estate services 124,861 3,986 128,847 Construction 67,232 758 67,990 Public administration 239,230 847 240,077 Other 468,562 53,390 521,952 1,184,118 66,238 1,250,356 Real estate - mortgage Residential & commercial owner-occupied 481,061 3,574 484,635 Residential & commercial investor 765,210 578 765,788 1,246,271 4,152 1,250,423 Construction & land 266,081 - 266,081 Consumer 279,191 2,910 282,101 Other 97,542 1,374 98,916 Total loans held for investment $ 3,073,203 $ 74,674 $ 3,147,877 Unearned net loan fees (2,314) Net loans held for investment $ 3,145,563 Transactions in the ALLL by segment for the three months ended March 31, 2018 and 2017 are summarized below: Three months ended March 31, (in thousands) 2018 2017 Allowance for loan losses, beginning of period Commercial $ 16,837 $ 15,398 Real estate - mortgage 12,690 11,475 Construction & land 4,034 1,997 Consumer 2,617 2,803 Other 826 945 Unallocated 937 675 Total 37,941 33,293 Provision Commercial $ 523 $ 414 Real estate - mortgage 199 317 Construction & land (801) (14) Consumer (17) (279) Other 16 (29) Unallocated (245) 198 Total (325) 607 Charge-offs Commercial $ (1,106) $ (26) Consumer (9) (80) Total (1,115) (106) Recoveries Commercial $ 269 $ 114 Real estate - mortgage 3 5 Construction & land 17 294 Consumer 6 4 Total 295 417 Allowance for loan losses, end of period Commercial $ 16,523 $ 15,900 Real estate - mortgage 12,892 11,797 Construction & land 3,250 2,277 Consumer 2,597 2,448 Other 842 916 Unallocated 692 873 Total $ 36,796 $ 34,211 The Company estimates the ALLL in accordance with ASC 310 for purposes of evaluating loan impairment on a loan-by-loan basis and ASC 450 for purposes of collectively evaluating loan impairment by grouping loans with common risk characteristics (i.e. risk classification, past-due status, type of loan, and collateral). The ALLL is comprised of the following components: · Specific Reserves – The Company continuously evaluates its reserve for loan losses to maintain an adequate level to absorb loan losses incurred in the loan portfolio. Reserves on loans identified as impaired, including troubled debt restructurings, are based on discounted expected cash flows using the loan’s initial effective interest rate, the observable market value of the loan or the fair value of the collateral for certain collateral-dependent loans. The fair value of the collateral is determined in accordance with ASC 820. Loans are considered to be impaired in accordance with the provisions of ASC 310 when it is probable that all amounts due in accordance with the contractual terms will not be collected. Factors contributing to the determination of specific reserves include the financial condition of the borrower, changes in the value of pledged collateral and general economic conditions. Troubled debt restructurings meet the definition of an impaired loan under ASC 310 and therefore, troubled debt restructurings are subject to impairment evaluation on a loan-by-loan basis. For collateral dependent loans that have been specifically identified as impaired, the Company measures fair value based on third-party appraisals, adjusted for estimated costs to sell the property. Upon impairment, the Company will obtain a new appraisal if one had not been previously obtained in the last 12 months. For credits over $2.0 million, the Company typically engages an additional third-party appraiser to review the appraisal. For credits under $2.0 million, the Company’s internal appraisal department reviews the appraisal. All appraisals are reviewed for adherence to regulations and mathematical accuracy and reasonableness based on recent sales transactions that may have occurred subsequent to or at the time of the appraisal. Based on this analysis, the appraised value may be adjusted downward if there is evidence that the appraised value may not be indicative of fair value. Each appraisal is updated on an annual basis, either through a new appraisal or through the Company’s comprehensive internal review process. Values are reviewed and monitored internally and fair value is re-assessed at least quarterly or more frequently when events or circumstances occur that indicate a change in fair value. · General Reserves – General reserves are considered part of the allocated portion of the ALLL. The Company uses a comprehensive loan grading process for our loan portfolios. Based on this process, a loss factor is assigned to each pool of graded loans. A combination of loss experience and external loss data is used in determining the appropriate loss factor. This estimate represents the probable incurred losses within the portfolio. In evaluating the adequacy of the ALLL, management considers historical losses (Migration), as well as other factors including changes in: · Lending policies and procedures · National and local economic and business conditions and developments · Nature and volume of portfolio · Trends of the volume and severity of past-due and classified loans · Trends in the volume of nonaccrual loans, troubled debt restructurings, and other loan modifications · Credit concentrations Troubled debt restructurings have a direct impact on the ALLL to the extent a loss has been recognized in relation to the loan modified. This is consistent with the Company’s consideration of Migration in determining general reserves. The aforementioned factors enable management to recognize environmental conditions contributing to incurred losses in the portfolio, which have not yet manifested in Migration. Management believes Migration history adequately captures a substantial percentage of probable incurred losses within the portfolio. In addition to the allocated reserve for graded loans, a portion of the ALLL is determined by segmenting the portfolio into product groupings with similar risk characteristics. Part of the segmentation involves assigning increased reserve factors to those lending activities deemed higher-risk, such as leverage-financings, unsecured loans, certain loans lacking personal guarantees, senior housing, speculative residential construction and multifamily loans. · Unallocated Reserves – The unallocated reserve, which is judgmentally determined, is maintained to recognize the imprecision in estimating and measuring loss when evaluating reserves for individual loans or pools of loans. The unallocated reserve consists of a missed grade component that is intended to capture the inherent risk that certain loans may be assigned an incorrect loan grade. In assessing the reasonableness of management’s assumptions, consideration is given to select peer ratios, industry standards and directional consistency of the ALLL. Ratio analysis highlights divergent trends in the relationship of the ALLL to nonaccrual loans, to total loans and to historical charge-offs. Although these comparisons can be helpful as a supplement to assess reasonableness of management assumptions, they are not, by themselves, sufficient basis for determining the adequacy of the ALLL. While management utilizes its best judgment and information available, the ultimate adequacy of the ALLL is dependent upon a variety of factors beyond the Company’s control, including the performance of the loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. The following table summarizes loans held for investment and the ALLL on the basis of the impairment method: At March 31, 2018 At December 31, 2017 Individually evaluated for impairment Collectively evaluated for impairment Individually evaluated for impairment Collectively evaluated for impairment (in thousands) Loans Allowance Loans Allowance Loans Allowance Loans Allowance Commercial $ 52,839 $ 5,546 $ 1,184,337 $ 10,977 $ 56,566 $ 5,862 $ 1,194,005 $ 10,975 Real estate - mortgage 4,354 395 1,243,577 12,497 1,331 109 1,248,166 12,581 Construction & land 1,044 74 227,854 3,176 1,071 91 263,330 3,943 Consumer 1,339 129 271,444 2,468 1,366 148 280,783 2,469 Other 24 24 97,630 818 - - 98,945 826 Unallocated - - - 692 - - - 937 Total $ 59,600 $ 6,168 $ 3,024,842 $ 30,628 $ 60,334 $ 6,210 $ 3,085,229 $ 31,731 Information on impaired loans at March 31, 2018 and December 31, 2017 is reported in the following tables: At March 31, 2018 Recorded Recorded Recorded investment investment Unpaid investment with a with no principal in impaired related related Related (in thousands) balance loans allowance allowance allowance Commercial Manufacturing $ 4,365 $ 4,365 $ 4,365 $ - $ 1,161 Finance and insurance 472 472 16 456 16 Healthcare 602 602 438 164 216 Real estate services 5,035 5,035 5,035 - 270 Construction 1,593 1,593 1,516 77 117 Other 41,973 40,772 39,632 1,140 3,766 54,040 52,839 51,002 1,837 5,546 Real estate - mortgage Residential & commercial owner-occupied 3,605 3,605 4,531 (926) 383 Residential & commercial investor 749 749 171 578 12 4,354 4,354 4,702 (348) 395 Construction & land 1,044 1,044 1,044 - 74 Consumer 1,339 1,339 189 1,150 129 Other 24 24 24 - 24 Total $ 60,801 $ 59,600 $ 56,961 $ 2,639 $ 6,168 At December 31, 2017 Recorded Recorded Recorded investment investment Unpaid investment with a with no principal in impaired related related Related (in thousands) balance loans allowance allowance allowance Commercial Manufacturing $ 3,302 $ 3,302 $ 3,302 $ - $ 238 Finance and insurance 473 473 17 456 17 Healthcare 718 718 459 259 207 Real estate services 7,982 7,982 7,982 - 544 Construction 1,689 1,457 977 480 71 Public administration 313 313 313 - 27 Other 42,660 42,321 41,030 1,291 4,758 57,137 56,566 54,080 2,486 5,862 Real estate - mortgage Residential & commercial owner-occupied 1,159 1,159 1,102 57 94 Residential & commercial investor 172 172 172 - 15 1,331 1,331 1,274 57 109 Construction & land 1,071 1,071 1,071 - 91 Consumer 1,366 1,366 212 1,154 148 Total $ 60,905 $ 60,334 $ 56,637 $ 3,697 $ 6,210 Three months ended March 31, 2018 2017 (in thousands) Average recorded Interest income Average recorded Interest income Commercial Manufacturing $ 3,834 $ 63 $ 2,046 $ 29 Finance and insurance 473 7 59 - Healthcare 660 16 246 6 Real estate services 6,509 20 6,244 50 Construction 1,525 26 1,586 20 Public administration 313 1 - - Other 41,547 719 9,603 179 54,861 852 19,784 284 Real estate - mortgage Residential & commercial owner-occupied 2,382 68 1,328 9 Residential & commercial investor 460 9 2,400 20 2,842 77 3,728 29 Construction & land 1,057 9 1,893 16 Consumer 1,215 10 238 1 Other 150 2 - - Total $ 60,125 $ 950 $ 25,643 $ 330 Interest income recognized on impaired loans presented in the table above primarily represents interest earned on troubled debt restructurings that meet the definition of an impaired loan and are subject to disclosure. Interest income that would have been recorded if nonaccrual loans performed in accordance with their contractual terms was immaterial in the periods presented. The table below summarizes transactions related to troubled debt restructurings during the three months ended March 31, 2018. (in thousands) Performing Nonperforming Total Beginning balance at December 31, 2017 $ 52,817 $ 3,682 $ 56,499 New restructurings 4,459 164 4,623 Change in accrual status (11,750) 11,750 - Net paydowns (4,126) (337) (4,463) Charge-offs - (999) (999) Ending balance at March 31, 2018 $ 41,400 $ 14,260 $ 55,660 The table below provides information regarding troubled debt restructurings that occurred during the three months ended March 31, 2018 and 2017. Pre-modification outstanding recorded investment reflects the Company’s recorded investment immediately before the modification. Post-modification outstanding recorded investment represents the Company’s recorded investment at the end of the reporting period. The table below does not include loans restructured and paid off during the periods presented. Three months ended March 31, 2018 Three months ended March 31, 2017 Pre-modification Post-modification Pre-modification Post-modification outstanding outstanding outstanding outstanding Number of recorded recorded Number of recorded recorded ($ in thousands) contracts investment investment contracts investment investment Commercial Manufacturing 2 $ 720 $ 699 - $ - $ - Healthcare - - - 2 329 193 Construction 2 946 714 - - - Other 3 558 555 3 1,357 1,353 7 $ 2,224 $ 1,968 5 $ 1,686 $ 1,546 Real estate - mortgage Residential & commercial owner-occupied 2 2,109 2,078 - - - Residential & commercial investor 1 578 578 - - - Total 10 $ 4,911 $ 4,624 5 $ 1,686 $ 1,546 Troubled debt restructurings during the three months ended March 31, 2018 and 2017 resulted primarily from the extension of repayment terms and interest rate concessions. The Company had no charge-offs in conjunction with loans restructured during the three months ended March 31, 2018 and 2017. At March 31, 2018 and December 31, 2017, there were $2.3 million and $4.0 million in outstanding commitments on restructured loans, respectively. There were no loans restructured within the past 12 months that had a payment default during the three months ended March 31, 2017. The table below presents troubled loans restructured within the past 12 months that had a payment default during the three months ended March 31, 2018. Three months ended March 31, 2018 Troubled debt restructurings that subsequently defaulted Number of contracts Recorded investment Commercial Finance and insurance 1 $ 456 Total 1 $ 456 The Company’s nonaccrual loans by class at March 31, 2018 and December 31, 2017 are reported in the following table: (in thousands) At March 31, 2018 At December 31, 2017 Commercial Manufacturing $ 1,846 $ - Finance and insurance 472 473 Healthcare 602 718 Construction 240 681 Other 13,244 4,313 Total commercial 16,404 6,185 Real estate-mortgage Residential & commercial owner-occupied 518 57 Total real estate - mortgage 518 57 Consumer 1,254 1,275 Other 24 - Total nonaccrual loans $ 18,200 $ 7,517 The tables below summarize the aging of the Company’s loan portfolio at March 31, 2018 and December 31, 2017. At March 31, 2018 30 - 59 60 - 89 90 days or more Days Days 90+ Days Total past due and (in thousands) past due past due past due past due Current Total loans accruing Commercial Manufacturing $ 406 $ 479 $ 1,366 $ 2,251 $ 74,328 $ 76,579 $ - Finance and insurance 3,962 - 456 4,418 45,761 50,179 - Healthcare 199 10 113 322 166,909 167,231 - Real estate services 60 - - 60 127,218 127,278 - Construction 251 600 - 851 64,866 65,717 - Public administration - - - - 255,988 255,988 - Other 9,362 11,000 1,117 21,479 472,270 493,749 - 14,240 12,089 3,052 29,381 1,207,340 1,236,721 - Real estate - mortgage Residential & commercial owner-occupied 1,374 - - 1,374 487,109 488,483 - Residential & commercial investor 629 - - 629 759,796 760,425 - 2,003 - - 2,003 1,246,905 1,248,908 - Construction & land - - - - 230,719 230,719 - Consumer - 10 1,123 1,133 271,569 272,702 - Other - - - - 97,628 97,628 - Total loans held for investment $ 16,243 $ 12,099 $ 4,175 $ 32,517 $ 3,054,161 $ 3,086,678 $ - Unearned net loan fees (2,236) Net loans held for investment $ 3,084,442 At December 31, 2017 Recorded investment in loans 30 - 59 60 - 89 90 days or more Days Days 90+ Days Total past due and (in thousands) past due past due past due past due Current Total loans accruing Commercial Manufacturing $ - $ - $ - $ - $ 85,187 $ 85,187 $ - Finance and insurance - 456 213 669 41,849 42,518 213 Healthcare 370 - 113 483 163,302 163,785 - Real estate services 1,503 - 135 1,638 127,209 128,847 135 Construction 721 600 681 2,002 65,988 67,990 - Public administration - - - - 240,077 240,077 - Other 3,463 459 2,302 6,224 515,728 521,952 - 6,057 1,515 3,444 11,016 1,239,340 1,250,356 348 Real estate - mortgage Residential & commercial owner-occupied 426 689 - 1,115 483,520 484,635 - Residential & commercial investor 875 299 - 1,174 764,614 765,788 - 1,301 988 - 2,289 1,248,134 1,250,423 - Construction & land 730 - - 730 265,351 266,081 - Consumer 1,423 15 1,107 2,545 279,556 282,101 - Other - 2 - 2 98,914 98,916 - Total loans held for investment $ 9,511 $ 2,520 $ 4,551 $ 16,582 $ 3,131,295 $ 3,147,877 $ 348 Unearned net loan fees (2,314) Net loans held for investment $ 3,145,563

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	3 Months Ended
	Mar. 31, 2018
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income	6. Accumulated Other Comprehensive Income The following table provides information on reclassifications out of AOCI. Three months ended March 31, AOCI component (in thousands) 2018 2017 Line item in Condensed Consolidated Statements of Income Available for sale securities: Realized loss $ - $ (3) Net (gain) loss on securities, other assets and OREO Taxes - 1 Provision for income taxes Subtotal - (2) Held to maturity securities: Amortization of net unrealized gain on HTM securities 308 454 Interest on taxable / nontaxable securities Taxes (75) (173) Provision for income taxes Subtotal 233 281 Cash flow hedges: Loans (16) 249 Interest and fees on loans Debt (241) (358) Interest on subordinated debentures and notes payable Realized loss (257) (109) Taxes 63 42 Provision for income taxes Subtotal (194) (67) Total reclassifications out of AOCI $ 39 $ 212 The following table provides the beginning and ending balances of AOCI and changes during the three months ended March 31, 2018. Accumulated other comprehensive income (in thousands) AFS HTM Cash flow hedges Total Balance at December 31, 2017 $ 1,700 $ 2,125 $ (3,966) $ (141) Other comprehensive income loss items (1,155) - (465) (1,620) Reclassification to earnings - (233) 194 (39) Reclassification to retained earnings 369 448 (847) (30) Other comprehensive income (loss), net of tax (786) 215 (1,118) (1,689) Balance at March 31, 2018 $ 914 $ 2,340 $ (5,084) $ (1,830)

Derivatives

Derivatives	3 Months Ended
	Mar. 31, 2018
Derivatives
Derivatives	7. Derivatives ASC 815 contains the authoritative guidance on accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, and hedging activities. As required by ASC 815, the Company records all derivatives on the consolidated balance sheets at fair value. The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and unknown cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to certain variable-rate loan assets and variable-rate borrowings. The Company also enters into derivative financial instruments to protect against adverse changes in fair value on fixed-rate loans. The Company’s objective in using derivatives is to minimize the impact of interest rate fluctuations on the Company’s NII. To accomplish this objective, the Company uses interest rate swaps as part of its cash flow hedging strategy. The Company also offers an interest rate hedge program that includes various derivative products, including swaps, to assist its customers in managing their interest rate risk profile. In order to eliminate the interest rate risk associated with offering these products, the Company enters into derivative contracts with third parties to offset the customer contracts. These customer accommodation interest rate swap contracts are not designated as hedging instruments. The Company has also expanded its product offering by adding international banking products, which exposes the Company to foreign exchange risk. The Company utilizes foreign exchange forward contracts to manage the risk associated with fluctuation in foreign exchange rates. The Company has agreements with its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. Also, the Company has agreements with certain of its derivative counterparties that contain a provision where if the Bank fails to maintain its status as a well or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. At March 31, 2018, the fair value of derivatives in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk, related to these agreements was $3.8 million. The Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $6.4 million against its obligations under these agreements. At March 31, 2018, the Company was not in default under any of its debt or capitalization covenants. The table below presents the fair value of the Company’s derivative financial instruments as well as the classification within the Condensed Consolidated Balance Sheets. Asset derivatives Liability derivatives Fair value at Fair value at Balance sheet March 31, December 31, Balance sheet March 31, December 31, (in thousands) classification 2018 2017 classification 2018 2017 Derivatives designated as hedging instruments under ASC 815: Cash flow hedge - interest rate swap Other assets $ 453 $ 113 Accrued interest and other liabilities $ 7,318 $ 6,732 Fair value hedge - interest rate swap Other assets $ 1,649 $ 628 Accrued interest and other liabilities $ 186 $ 633 Derivatives not designated as hedging instruments under ASC 815: Interest rate swap Other assets $ 3,255 $ 2,081 Accrued interest and other liabilities $ 3,276 $ 2,176 Foreign exchange forward contracts Other assets $ 40 $ 28 Accrued interest and other liabilities $ 33 $ 44 The tables below include information about financial instruments that are eligible for offset. At March 31, 2018 Assets Gross amounts not offset Gross Gross Financial Net (in thousands) amounts amounts offset Net amounts Instruments Collateral Amount Derivatives designated as hedges (1) $ 2,102 $ - $ 2,102 $ (1,709) $ - $ 393 Derivatives not designated as hedges (1) 3,295 - 3,295 (2,775) - 520 Total $ 5,397 $ - $ 5,397 $ (4,484) $ - $ 913 At March 31, 2018 Liabilities Gross amounts not offset Gross Gross Financial Net (in thousands) amounts amounts offset Net amounts Instruments Collateral Amount Derivatives designated as hedges (2) $ (7,504) $ - $ (7,504) $ 1,709 $ 5,795 $ - Derivatives not designated as hedges (2) (3,309) - (3,309) 2,775 638 104 Securities sold under agreements to repurchase (3) (42,268) - (42,268) - 42,268 - Total $ (53,081) $ - $ (53,081) $ 4,484 $ 48,701 $ 104 At December 31, 2017 Assets Gross amounts not offset Gross Gross Financial Net (in thousands) amounts amounts offset Net amounts Instruments Collateral Amount Derivatives designated as hedges (1) $ 741 $ - $ 741 $ (741) $ - $ - Derivatives not designated as hedges (1) 2,109 - 2,109 (1,222) - 887 Total $ 2,850 $ - $ 2,850 $ (1,963) $ - $ 887 At December 31, 2017 Liabilities Gross amounts not offset Gross Gross Financial Net (in thousands) amounts amounts offset Net amounts Instruments Collateral Amount Derivatives designated as hedges (2) $ (7,365) $ - $ (7,365) $ 741 $ 6,624 $ - Derivatives not designated as hedges (2) (2,220) - (2,220) 1,222 968 (30) Securities sold under agreements to repurchase (3) (52,959) - (52,959) - 52,959 - Total $ (62,544) $ - $ (62,544) $ 1,963 $ 60,551 $ (30) (1) Included in other assets. (2) Included in accrued interest and other liabilities. (3) Separately stated in the Condensed Consolidated Balance Sheets. Cash Flow Hedges of Interest Rate Risk — For hedges of the Company’s variable-rate loan assets, interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. In October 2016, the Company entered into two interest rate swaps to hedge the risk of changes in cash flow on its LIBOR-based loan portfolio. The interest rate swaps have a weighted average term of approximately five years and have a combined notional value of $100.0 million. The Company pays a variable rate based on 1-month LIBOR and receives a weighted average fixed-rate of 1.20%. For hedges of the Company’s variable-rate borrowings, interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments. The Company has executed a series of interest rate swap transactions in order to fix the effective interest rate for payments due on its junior subordinated debentures with the objective of reducing the Company’s exposure to adverse changes in cash flows relating to payments on its LIBOR-based floating rate debt. Select critical terms of the cash flow hedges are as follows: (in thousands) Notional Fixed rate Termination date Hedged item - Junior subordinated debentures issued by: CoBiz Statutory Trust I $ 20,000 % March 17, 2022 CoBiz Capital Trust II $ 30,000 % April 23, 2020 CoBiz Capital Trust III $ 20,000 % March 30, 2024 Based on the Company’s ongoing assessments (including at inception of the hedging relationship), it is probable that there will be sufficient variable interest payments through the maturity date of the swaps. The Company also monitors the risk of counterparty default on an ongoing basis. The Company uses a regression analysis and the “Hypothetical Derivative” method described in ASC 815, for both prospective and retrospective assessments of hedge effectiveness on a quarterly basis. The Company also uses the Hypothetical Derivative methodology to measure hedge ineffectiveness each period. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in AOCI and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company’s derivatives did not have any hedge ineffectiveness recognized in earnings during the three months ended March 31, 2018 and 2017. Amounts reported in AOCI related to derivatives will be reclassified to interest income as interest payments are received/paid on the Company’s variable-rate assets. Payments received/paid on variable-rate liabilities will be reclassified to interest expense. During the next 12 months, the Company estimates that $1.5 million will be reclassified as an increase to interest expense and $0.2 million will be reclassified as an increase to interest income. Fair Value Hedges of Fixed-Rate Assets – The Company is exposed to changes in the fair value of certain of its fixed-rate assets due to changes in benchmark interest rates based on LIBOR. The Company uses interest rate swaps to manage its exposure to changes in fair value on certain fixed-rate loans. Interest rate swaps designated as fair value hedges involve the receipt of variable-rate payments from a counterparty in exchange for the Company’s fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. Certain interest rate swaps met the criteria to qualify for the shortcut method of accounting. Under the shortcut method of accounting, no ineffectiveness is assumed. For interest rate swaps not accounted for under the shortcut method, the Company performs ongoing retrospective and prospective effectiveness assessments (including at inception) using a regression analysis to compare periodic changes in fair value of the swaps to periodic changes in fair value of the fixed-rate loans attributable to changes in the benchmark interest rate. At March 31, 2018, the Company had interest rate swaps with a notional amount of $58.5 million used to hedge the change in the fair value of 11 commercial loans. For derivatives that are designated and qualify as fair value hedges that are not accounted for under the shortcut method, the gain or loss on the derivative as well as the gain or loss on the hedged item attributable to the hedged risk are recognized in earnings. The net amount representing hedge ineffectiveness that was recognized in “Other income” in the Condensed Consolidated Statements of Income during the three months ended March 31, 2018 was immaterial. Non-designated Hedges — Derivatives not designated as hedges are not speculative and primarily result from a service the Company provides to its customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. At March 31, 2018, the Company had 100 interest rate swaps with an aggregate notional amount of $313.7 million related to this program. During the three months ended March 31, 2018 and 2017, gains and losses arising from changes in the fair value of these swaps, which are included in “Other income,” in the Condensed Consolidated Statements of Income, were immaterial. The Company’s product offerings also include international banking products that create foreign currency exchange-rate risk exposure. In order to economically reduce the risk associated with the fluctuation of foreign exchange rates, the Company utilizes short-term foreign exchange forward contracts to lock in exchange rates so the gain or loss on the forward contracts approximately offsets the transaction gain or loss. These contracts are not designated as hedging instruments. Ineffectiveness in the economic hedging relationship may occur as the foreign currency holdings are revalued based upon changes in the currency’s spot rate, while the forward contracts are revalued using the currency’s forward rates. Forward contracts in gain positions are recorded at fair value in “Other assets” and, forward contracts in loss positions are recorded in “Accrued interest and other liabilities” in the Condensed Consolidated Balance Sheets. Net changes in the fair value of the forward contracts are recognized through earnings, disclosed as ‘other’ noninterest income in the Condensed Consolidated Statements of Income. At March 31, 2018, the Company had forward contracts with a notional amount of $4.7 million that mature in less than one year. Net gains from forward contracts recognized and included in “Other income” in the Condensed Consolidated Statements of Income during the three months ended March 31, 2018 and 2017 were immaterial.

Borrowed Funds

Borrowed Funds	3 Months Ended
	Mar. 31, 2018
Borrowed Funds
Borrowed Funds	8. Borrowed Funds A summary of borrowed funds (excluding long-term debt) at March 31, 2018 and December 31, 2017 is included below. March 31, December 31, (in thousands) 2018 2017 Securities sold under agreements to repurchase (secured by pledge of mortgage-backed securities with an estimated fair value of $43,113 and $54,018, respectively) $ 42,268 $ 52,959 Other short-term borrowings 97,818 77,640 The Company enters into sales of securities under agreements to repurchase. The amounts received under these agreements represent short-term borrowings and are reflected as a liability in the Condensed Consolidated Balance Sheets. The securities underlying these agreements are included in investment securities in the Condensed Consolidated Balance Sheets. At March 31, 2018, all securities sold under agreements to repurchase had a maturity date of less than three months. The Company has no control over the market value of the securities, which fluctuates due to market conditions. However, the Company is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price. The Company manages this risk by maintaining an unpledged securities portfolio that it believes is sufficient to cover a decline in the market value of the securities sold under agreements to repurchase. Securities sold under agreements to repurchase averaged $48.9 million in the first three months of 2018 and $59.6 million in the year ended December 31, 2017. The maximum amount outstanding at any month-end during the first three months of 2018 was $48.5 million. The maximum amount outstanding at any month-end during 2017 was $69.9 million. At March 31, 2018 and December 31, 2017, the weighted average interest rate was 0.06%. The assets underlying the securities sold under agreements to repurchase are GNMA, FNMA and FHLMC mortgage-backed securities. All securities sold under agreements to repurchase had a maturity date of less than three months. The Company has a line of credit with the FHLB with a rolling one-year term that matures every July with automatic renewals unless canceled. The average FHLB line of credit balance was $85.6 million in the first three months of 2018 and $107.3 million in the year ended December 31, 2017. The line of credit is collateralized by either qualifying loans or investment securities not otherwise pledged as collateral. The Company pledged loans of $887.4 million and $877.9 million with a lending value of $609.1 million and $605.4 million at March 31, 2018 and December 31, 2017, respectively, as collateral for the FHLB line of credit. The variable rate on the line of credit was 1.75% and 1.47% at March 31, 2018 and December 31, 2017, respectively. The Company has also pledged $829.0 million of loans at March 31, 2018 to the Federal Reserve Bank of Kansas City as collateral for borrowing through the discount window lending program. At March 31, 2018 and December 31, 2017, there was no amount outstanding with the discount window. The Company has a revolving Line of Credit (LOC) agreement with an aggregate principal sum of up to $20.0 million bearing interest at 1-month LIBOR plus 225 basis points (2.25%). The Company pays a quarterly commitment fee of 0.35% per annum on the unused portion of the LOC. The LOC matures May 2018, at which time any outstanding amounts are due and payable. The LOC is used for general corporate purposes and backup liquidity. Although the LOC is unsecured, the Company has agreed not to sell, pledge or transfer any part of its right, title or interest in the Bank. At March 31, 2018 and December 31, 2017, there was no amount outstanding on the LOC. The Company has approved federal funds purchase lines with eight banks with an aggregate credit line of $180.0 million. At March 31, 2018 $2.8 million was outstanding on the federal funds purchase lines, and $4.6 million was outstanding at December 31, 2017. The average balance of federal funds purchased was $2.0 million in the first three months of 2018 and $1.5 million during the year ended December 31, 2017.

Segments

Segments	3 Months Ended
	Mar. 31, 2018
Segments
Segments	9. Segments The Company’s operating segments consist of Commercial Banking, Fee-Based Lines and Corporate Support and Other. The financial information for the Commercial Banking and Fee-Based Lines segments reflect activities which are specifically identifiable or which are allocated based on an internal allocation method. The Corporate Support and Other segment includes activities that are not directly attributable to the other reportable segments including centralized bank operations and the activities of the Parent. The following tables report the results of operations for the three months ended March 31, 2018 and 2017 by segment. Three months ended March 31, 2018 Corporate Income Statement Commercial Fee-Based Support and (in thousands) Banking Lines Other Consolidated Total interest income $ 37,688 $ - $ 89 $ 37,777 Total interest expense 1,341 - 1,827 3,168 Provision for loan losses (316) - (9) (325) Noninterest income 3,746 5,114 101 8,961 Noninterest expense 6,045 4,346 18,179 28,570 Management fees and allocations, net of tax 13,563 475 (14,038) - Provision (benefit) for income taxes 7,313 214 (5,183) 2,344 Net income (loss) $ 13,488 $ 79 $ (586) $ 12,981 Three months ended March 31, 2017 Corporate Income Statement Commercial Fee-Based Support and (in thousands) Banking Lines Other Consolidated Total interest income $ 32,994 $ - $ 87 $ 33,081 Total interest expense 1,191 13 1,799 3,003 Provision for loan losses 692 - (85) 607 Noninterest income 3,404 4,653 271 8,328 Noninterest expense 9,548 4,504 13,062 27,114 Management fees and allocations, net of tax 7,704 275 (7,979) - Provision (benefit) for income taxes 7,583 48 (5,560) 2,071 Net income (loss) $ 9,680 $ (187) $ (879) $ 8,614

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
Fair Value Measurements
Fair Value Measurements	10. Fair Value Measurements ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). · Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. · Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals. · Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company evaluates fair value measurement inputs on an ongoing basis in order to determine if there is a change of sufficient significance to warrant a transfer between levels. For example, changes in market activity or the addition of new unobservable inputs could, in the Company’s judgment, cause a transfer to either a higher or lower level. Assets and liabilities measured on a recurring basis A description of the valuation methodologies used for financial instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Available for sale securities – At March 31, 2018, the Company held, as part of its investment portfolio, available for sale securities reported at fair value consisting of municipal securities, corporate debt securities, and TPS. The fair value of the majority of municipal securities is determined using widely accepted valuation techniques including matrix pricing and broker-quote based applications. Inputs include benchmark yields, reported trades, issuer spreads, and other relevant items. As a result, the Company has determined that these valuations fall within Level 2 of the fair value hierarchy. The Company also holds TPS that are recorded at fair value based on unadjusted quoted market prices for identical securities in an active market. The majority of the TPS are actively traded in the market and as a result, the Company has determined that the valuation of these securities falls within Level 1 of the fair value hierarchy. The Company also holds certain TPS and corporate debt securities for which unadjusted market prices are not available or the markets are not active and are therefore classified as Level 2 or Level 3. The Company uses broker-dealer quotes, valuations based on similar but not identical securities, or the most recent market trade (which may not be current) to price these securities. Total net unrealized gain recognized in AOCI at March 31, 2018 on TPS Level 3 securities was immaterial. Derivative financial instruments – The Company uses interest rate swaps as part of its cash flow strategy to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques as discussed further below. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. Pursuant to guidance in ASC 820, credit valuation adjustments are incorporated into the valuation to appropriately reflect both the Company’s own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings and thresholds. The Company uses Level 2 and Level 3 inputs to determine the valuation of its derivatives portfolio. The valuation of derivative instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs (Level 2 inputs), including interest rate curves and implied volatilities. The estimates of fair value are made using a standardized methodology that nets the discounted expected future cash receipts and cash payments (based on observable market inputs). Level 3 inputs include the credit valuation adjustments which use estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. At March 31, 2018 and December 31, 2017, the Company assessed the impact of the Level 3 inputs on the overall derivative valuations in terms of the significance of the credit valuation adjustments in basis points and as a percentage of the overall derivative portfolio valuation and the overall notional value. The Company’s assessment determined that credit valuation adjustments were not significant to the overall valuation of the portfolio. In addition, the significance of the credit value adjustments and overall derivative portfolio to the Company’s financial statements was considered. As a result of the insignificance of the credit value adjustments to the derivative portfolio valuations and the Company’s financial statements, the Company classified the derivative valuations in their entirety in Level 2. The Company uses foreign exchange forward contracts to mitigate exchange-rate risk arising from the Company’s foreign currency holdings to support its international banking product offering. Fair value measurements of these assets or liabilities are priced based on spot and forward foreign currency rates and the credit worthiness of the contract counterparty. These contracts are classified in Level 2. Forward contracts in gain positions and those in loss positions are classified in the Condensed Consolidated Balance Sheets as “Other assets” and “Accrued interest and other liabilities”, respectively. The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis at March 31, 2018 and December 31, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall. Fair value measurements using: Quoted prices in Significant Significant active markets for observable unobservable Balance at identical assets inputs inputs (in thousands) March 31, 2018 (Level 1) (Level 2) (Level 3) Assets Available for sale securities: Trust preferred securities $ 21,770 $ 353 $ 12,289 $ 9,128 Corporate debt securities 159,351 - 159,351 - Municipal securities 3,268 - 3,268 - Total available for sale securities $ 184,389 $ 353 $ 174,908 $ 9,128 Derivatives: Cash flow hedges $ 453 $ - $ 453 $ - Fair value hedges 1,649 - 1,649 - Non-designated hedges 3,255 - 3,255 - Foreign exchange forward contracts 40 - 40 - Total derivative assets $ 5,397 $ - $ 5,397 $ - Liabilities Derivatives: Cash flow hedges $ 7,318 $ - $ 7,318 $ - Fair value hedges 186 - 186 - Non-designated hedges 3,276 - 3,276 - Foreign exchange forward contracts 33 - 33 - Total derivative liabilities $ 10,813 $ - $ 10,813 $ - Fair value measurements using: Quoted prices in Significant Significant active markets for observable unobservable Balance at identical assets inputs inputs (in thousands) December 31, 2017 (Level 1) (Level 2) (Level 3) Assets Available for sale securities: Trust preferred securities $ 21,983 $ 363 $ 12,521 $ 9,099 Corporate debt securities 141,495 - 141,495 - Municipal securities 3,275 - 3,275 - Total available for sale securities $ 166,753 $ 363 $ 157,291 $ 9,099 Derivatives: Cash flow hedges $ 113 $ - $ 113 $ - Fair value hedges 628 - 628 - Non-designated hedges 2,081 - 2,081 - Foreign exchange forward contracts 28 - 28 - Total derivative assets $ 2,850 $ - $ 2,850 $ - Liabilities Derivatives: Cash flow hedges $ 6,732 $ - $ 6,732 $ - Fair value hedge 633 - 633 - Non-designated hedges 2,176 - 2,176 - Foreign exchange forward contracts 44 - 44 - Total derivative liabilities $ 9,585 $ - $ 9,585 $ - A reconciliation of the beginning and ending balances of assets measured at fair value, on a recurring basis, using Level 3 inputs follows: Three months ended March 31, (in thousands) 2018 2017 Beginning balance $ 9,099 $ 9,448 Transfers and purchases - - Net accretion 30 29 Sales / calls / maturities - - Unrealized gain (loss) included in comprehensive income (1) 540 Ending balance $ 9,128 $ 10,017 Assets and liabilities measured on a nonrecurring basis Fair value is used on a nonrecurring basis to evaluate certain financial assets and financial liabilities in specific circumstances. Similarly, fair value is used on a nonrecurring basis for nonfinancial assets and nonfinancial liabilities such as foreclosed assets, other real estate owned, intangible assets, nonfinancial assets and liabilities evaluated in a goodwill impairment analysis and other nonfinancial assets measured at fair value for purposes of assessing impairment. A description of the valuation methodologies used for financial and nonfinancial assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy, is set forth below. Impaired loans – Certain collateral-dependent impaired loans are reported at the fair value of the underlying collateral. Impairment is measured based on the fair value of the collateral, which is typically derived from appraisals that take into consideration prices in observed transactions involving similar assets and similar locations. Each appraisal is updated on an annual basis, either through a new appraisal, a new evaluation or through the Company’s comprehensive internal review process. Appraised values are reviewed and monitored internally and fair value is assessed at least quarterly or more frequently when circumstances occur that indicate a change in fair value has occurred. The Company classified impaired loans as Level 3. Other real estate owned (OREO) – OREO represents real property taken by the Company either through foreclosure or through a deed in lieu thereof from the borrower. The fair value of OREO is based on property appraisals adjusted at management’s discretion to reflect a further decline in the fair value of properties since the time the appraisal analysis was performed. Therefore, the inputs used to determine the fair value of OREO fall within Level 3. The Company may include within OREO other repossessed assets received as partial satisfaction of a loan. Other repossessed assets are not material and do not typically have readily determinable market values and are considered Level 3 inputs. The following table presents the Company’s assets measured at fair value on a nonrecurring basis at the dates specified in the following table, aggregated by the level in the fair value hierarchy within which those measurements fall. Fair value measurements using: Quoted prices in Significant Significant active markets for observable unobservable identical assets inputs inputs (in thousands) Total (Level 1) (Level 2) (Level 3) At March 31, 2018 Impaired loans $ 15,649 $ - $ - $ 15,649 OREO $ 5,245 $ - $ - $ 5,245 At December 31, 2017 Impaired loans $ 3,792 $ - $ - $ 3,792 OREO $ 5,351 $ - $ - $ 5,351 Gains and losses, which include the provision for losses on impaired loans, recorded in relation to assets and liabilities measured on a nonrecurring basis are presented below: Gain for the three months ended March 31, (in thousands) 2018 2017 Impaired loans $ (1,286) $ 404 In accordance with ASC 310, the fair value of OREO recorded as an asset is reduced by estimated selling costs. The following table is a reconciliation of the fair value measurement of OREO disclosed pursuant to ASC 820 to the amount recorded on the Condensed Consolidated Balance Sheets: At At (in thousands) March 31, 2018 December 31, 2017 OREO recorded at fair value $ 5,245 $ 5,351 Estimated selling costs (266) (272) OREO $ 4,979 $ 5,079 The following tables provide information describing the valuation techniques used to determine recurring and nonrecurring fair value measurements categorized within Level 3 of the fair value hierarchy at March 31, 2018 and December 31, 2017. At March 31, 2018 Fair value Weighted Category (in thousands) Valuation technique Unobservable input average Range Trust preferred securities $ 9,128 Market approach Discount to carrying value using broker quotes or observable prices on similar securities 7 % 5% - 15% Impaired loans: Commercial $ 13,403 Sales comparison (1) Management discount for asset type 82 % 0% - 90% Real estate - mortgage 1,096 Sales comparison (2) Sales comparison adjustments (2) % (4)% - 0% Consumer 1,150 Sales comparison (2) Sales comparison adjustments (6) % (20)% - (4)% Total impaired loans $ 15,649 OREO: Commercial $ 190 Property appraisals (2) Management discount for property type 0 % NA Construction & land 5,055 Property appraisals (2) Management discount for property type 50 % NA Total OREO $ 5,245 At December 31, 2017 Fair value Weighted Category (in thousands) Valuation technique Unobservable input average Range Trust preferred securities $ 9,099 Market approach Discount to carrying value using broker quotes or observable prices on similar securities 7 % 5% - 15% Impaired loans: Commercial $ 2,581 Sales comparison (1) Management discount for asset type 59 % 0% - 98% Real estate - mortgage 57 Sales comparison (2) Sales comparison adjustments (4) % NA Consumer 1,154 Sales comparison (2) Sales comparison adjustments (11) % (7)% - (20)% Total impaired loans $ 3,792 OREO: Commercial $ 190 Property appraisals (2) Management discount for property type 0 % NA Construction & land 5,161 Property appraisals (2) Management discount for property type 17 % NA Total OREO $ 5,351 (1) Discount represents management’s discounts applied to market valuation of various business asset types including accounts receivable and other commercial assets. (2) The fair value of OREO and collateral-dependent impaired loans is based on third-party property appraisals. The majority of the appraisals utilize at least two valuation approaches or a combination of approaches including a market approach, where prices and other relevant information generated by market transactions involving similar or comparable properties are used to determine fair value. Appraisals may include an ‘as is’ and ‘upon completion’ valuation approach. Adjustments are routinely made in the appraisal process by third-party appraisers to adjust for differences between the comparable sales and income data. Adjustments also result from the consideration of relevant economic and demographic factors with the potential to affect property values. Also, prospective values are based on the market conditions which exist at the date of inspection combined with informed forecasts based on current trends in supply and demand for the property types under appraisal. Positive adjustments disclosed in these tables represent increases and negative adjustments represent decreases in fair value. The following table includes the estimated fair value of the Company’s financial instruments. The methodologies for estimating the fair value of financial assets and financial liabilities measured at fair value on a recurring and nonrecurring basis are discussed above. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies and are based on the exit price notion set forth by ASU 2016-01 effective January 1, 2018 and applied to this disclosure on a prospective basis. Estimated fair value of assets and liabilities carried at cost at December 31, 2017 were based on an entry price notion. Considerable judgment is required to interpret market data in order to develop the estimates 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 estimation methodologies may have a material effect on the estimated fair value amounts at March 31, 2018 and December 31, 2017. Fair Value March 31, 2018 December 31, 2017 Classification Carrying Estimated Carrying Estimated (in thousands) level value fair value value fair value Financial assets: Cash and cash equivalents $ 67,680 $ 67,680 $ 80,180 $ 80,180 Investment securities available for sale (1) 184,389 184,389 166,753 166,753 Investment securities held to maturity (1) 386,908 381,947 362,544 360,071 Other investments 2,174 2,174 2,174 2,174 Loans — net 3,047,646 3,000,398 3,107,622 3,080,935 Accrued interest receivable (2) 13,506 13,506 14,150 14,150 Derivatives 5,397 5,397 2,850 2,850 Financial liabilities: Deposits $ 3,179,766 $ 3,178,891 $ 3,225,220 $ 3,224,417 Securities sold under agreements to repurchase 42,268 35,341 52,959 49,436 Short-term borrowings 97,818 97,818 77,640 77,640 Accrued interest payable (2) 1,696 1,696 1,077 1,077 Subordinated notes payable 59,217 56,832 59,195 58,451 Junior subordinated debentures 72,166 72,166 72,166 72,166 Derivatives 10,813 10,813 9,585 9,585 (1) AFS and HTM securities are primarily classified as Level 2 and Level 3 of the fair value hierarchy. (2) Accrued interest receivable/payables are classified in the same level hierarchy as the underlying assets and liabilities. The fair value estimates presented herein are based on pertinent information available to management at March 31, 2018 and December 31, 2017. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and, therefore, current estimates of fair value may differ significantly from the amounts presented herein.

Regulatory Matters

Regulatory Matters	3 Months Ended
	Mar. 31, 2018
Regulatory Matters
Regulatory Matters	11. Regulatory Matters The following table presents the regulatory capital ratios of the Bank and Holding Company, including regulatory thresholds, at March 31, 2018. The minimum CCB for 2018 increased to 1.875% from 1.25% in 2017. The CCB increases 0.625% annually through 2019 to 2.5% and is designed to establish a capital range for banking organizations above minimum requirements to insulate banks from periods of stress and impose constraints on dividends, share repurchases and discretionary bonus payments when capital levels fall below prescribed levels. At March 31, 2018 Capitalized Ratio Bank Company Minimum ratio (in thousands) Ratios Ratios Well (1) plus fully phased-in CCB Common equity tier 1 capital 10.7 % 10.5 % 6.5 % % Tier 1 capital 10.7 % 12.4 % 8.0 % % Total capital 13.7 % 15.1 % 10.0 % % Tier 1 leverage 9.1 % 10.6 % 5.0 % % (1) The ratios for the well-capitalized requirement are only applicable to the Bank. However, the Company manages its capital position as if the requirement applies to the consolidated entity and has presented the ratios as if they also applied to the Company.

Revenue and Expense

Revenue and Expense	3 Months Ended
	Mar. 31, 2018
Revenue and Expense
Revenue and Expense	12. Revenue and Expense Revenue from Contracts with Customers and Supplemental Financial Data On January 1, 2018 the Company adopted ASC Topic 606, as revised under ASUs 2014-09, 2014-08 and 2016-20, using the modified retrospective method. Other income disclosures for periods beginning after January 1, 2018 are presented under revised ASC Topic 606, which have not materially changed from the prior year amounts. Consistent with Topic 606, noninterest income covered by this guidance is recognized as services are transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those services. See Note 9 for disclosure of noninterest income by operating segment. Deposit Service Charges — Deposit service charges primarily consist of fees earned from our treasury management services. These services include account reconciliation, bill pay, ACH, positive pay, lockbox, remote deposit, online banking and cash vault, among others. Customers are given the option to pay for these services in cash or by offsetting the fees for these services against an earnings credit that is given for maintaining noninterest-bearing deposits. The Company’s performance obligations on its treasury services are satisfied either at the time of the transaction or over the course of a month. Most customers pay deposit charges on a monthly basis. Investment Advisory Income — Investment advisory income consists of fees earned from providing investment supervisory and financial planning services. The Company’s obligation to provide investment management services to customers are a series of distinct services that form a single performance obligation that is provided on a continuous basis over the course of each quarter. Fees earned are based upon a percentage of AUM that is assessed for each calendar quarter during any part of which a client agreement is in effect. The fee is paid quarterly, normally in arrears, based on the market value of the AUM on the last day of the quarter. Insurance Income — Insurance income is comprised of three primary sources: Employee Benefits brokerage, P&C brokerage and Bonus income. Under most of our insurance contracts, the Company acts a broker between the client and the insurance carrier with the carrier billing the insured party. The Company’s involvement in a direct billing arrangement is limited to commissions paid to the Company by the insurance carrier. Additionally, for certain policies the Company enters into an agency billing arrangement and directly bills and collects payment from the insured and remits funds to the insurance carrier in accordance with the agreement. Commission expense paid to production staff is variable and recorded in the same period in which the performance obligation is satisfied. · Employee Benefits (EB) brokerage — The EB division assists companies in designing and managing comprehensive employee benefit programs. The services provided by the Company are collectively benefit management services which are considered a bundle of services that are highly interrelated. Each of the underlying services are activities to fulfill the benefit management service and are not distinct and separate performance obligations. Revenue is recognized over the contract term as services are rendered on a monthly basis. Customer payments are usually received on a monthly basis. · P&C brokerage — P&C insurance includes the brokerage of both personal and commercial coverages. The placement of the policy constitutes the completion of the performance obligation for a P&C contract and revenue is recognized at that time. Customers can elect to pay premiums at the time of placement or on an installment basis over the term of the policy, which is predominantly an annual period. The Company’s commission is based on a percentage of the premium. · Bonus income — The Company earns supplemental compensation based on volume metrics and loss ratios. Bonus income variables differ by contract but generally include metrics used to stimulate performance improvement and sales growth. The Company calculates reasonable estimates of minimum variable consideration for which it is probable that a significant reversal of cumulative revenue will not occur as the underlying policies are placed. Merchant and Bankcard Fees — The Company earns various types of network transaction fees from third party payment network providers which consist of (i) interchange fees earned from the payment network as a debit card issuer, (ii) referral fee income in the form of a percentage of interchange income earned on credit cards, and (iii) ongoing merchant fees earned by the Company for referring our clients to the payment processing provider which allows our clients to accept credit cards as a form of payment. The Company is an issuer of debit cards only as it relates to merchant and bankcard fees. Interchange income, which is settled on a daily basis, is recognized as settlement occurs. Chargebacks have not historically been, nor are they expected to be significant to the overall fee revenue and will be recognized upon occurrence. Referral and merchant fees are recognized when the transaction occurs. Contract Costs — Costs associated with revenue from contracts with customers predominantly relate to contracts that have a period of one year or less. The Company has elected to expense the applicable costs as incurred. At March 31, 2018 and December 31, 2017, the Company had receivables from customers of $3.8 million and $3.7 million, respectively. The following table presents our noninterest income disaggregated by revenue source. Three months ended Noninterest income March 31, (in thousands) 2018 2017 Depository service charges $ 1,655 $ 1,745 Investment advisory income 1,655 1,531 Property and casualty 1,232 1,129 Employee benefits 2,075 1,639 Bonus income and merchant and bankcard fees 629 820 Revenue from contracts with customers 7,246 6,864 Loan fees 743 516 Other customer service fees 239 233 Bank-owned life insurance 398 349 Other investments 175 375 Derivative valuation 156 (57) Other 4 48 Other noninterest income 1,715 1,464 Total noninterest income $ 8,961 $ 8,328 The following table provides supplemental information on the detail of other noninterest expense. Three months ended Other noninterest expense March 31, (in thousands) 2018 2017 Marketing and business development $ 701 $ Service contracts 1,345 Professional fees 1,532 Office supplies and delivery 251 Other 852 Total $ 4,681 $

Nature of Operations and Sign19

Nature of Operations and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Nature of Operations and Significant Accounting Policies
Basis of Presentation	Basis of Presentation — The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, the instructions to Form 10-Q and, where applicable, prevailing practices within the financial services industry. The December 31, 2017 Condensed Consolidated balance sheet has been derived from the audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2017. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting only of normally recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2018. In preparing the consolidated financial statements, the Company is required to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. These Condensed Consolidated Financial Statements and notes thereto should be read in conjunction with, and are qualified in their entirety by, the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC. The Condensed Consolidated Financial Statements include entities in which the Parent has a controlling financial interest. These entities include: the Bank; CoBiz Insurance, Inc.; and CoBiz IM. Intercompany balances and transactions are eliminated in consolidation. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a VIE. The voting interest model is used when the equity investment is sufficient to absorb the expected losses and the equity investment has all of the characteristics of a controlling financial interest. Under the voting interest model, the party with the controlling voting interest consolidates the legal entity. The VIE model is used when any of the following conditions exist: the equity investment at risk is not sufficient to finance the entity’s activities without additional subordinated financial support; the holders of the equity investment do not have a controlling voting interest; or the holders of the equity investment are not obligated to absorb the expected losses or residual returns of the legal entity. An enterprise is considered to have a controlling financial interest of a VIE if it has both the power to direct the activities that most significantly impact economic performance and the obligation to absorb losses, or receive benefits, that are significant to the VIE. An enterprise that has a controlling financial interest is considered the primary beneficiary and must consolidate the VIE. The Company was not the primary beneficiary of a VIE at March 31, 2018 or December 31, 2017. Certain reclassifications have been made to prior years’ Condensed Consolidated Financial Statements and related notes to conform to the current year presentation.
Cash and Cash Equivalents	Cash and Cash Equivalents — The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents include amounts that the Company is required to maintain at the Federal Reserve Bank of Kansas City to meet certain regulatory reserve balance requirements. The following table shows supplemental disclosures of certain cash and noncash items: Three months ended March 31, (in thousands) 2018 2017 Cash paid during the period for: Interest $ 2,550 $ 2,210 Income taxes - 1,339
Investments	Investments — The Company classifies its investment securities as held to maturity, available for sale or trading, according to management’s intent. Investment security transactions are recorded on a trade date basis. At March 31, 2018 and December 31, 2017, the Company had no trading securities. Available for sale securities consist of bonds, notes and debentures (including corporate debt and TPS) not classified as held to maturity securities and are reported at fair value as determined by quoted market prices. Unrealized holding gains and losses, net of tax, are reported as a net amount in AOCI until realized. Investment securities held to maturity consist of residential MBS, bonds, notes and debentures for which the Company has the positive intent and ability to hold to maturity and are reported at cost, adjusted for amortization or accretion of premiums and discounts. Premiums and discounts, adjusted for prepayments as applicable, are recognized in interest income. Other than temporary declines in the fair value of individual investment securities held to maturity and available for sale are charged against earnings. Gains and losses on disposal of investment securities are determined using the specific-identification method. OTTI on debt securities is separated between the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between a security’s amortized cost basis and the discounted present value of expected future cash flows. The amount due to all other factors is recognized in OCI.
Bank Stocks	Bank Stocks — FHLB, Federal Reserve and other correspondent bank stocks are accounted for under the cost method.
Loans Held for Investment	Loans Held for Investment — Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balance adjusted for any charge-offs, the ALLL, deferred fees and costs on originated loans, and unamortized premiums or discounts on purchased loans. Interest is accrued and credited to income daily based on the principal balance outstanding. Loans that are 30 days or more past due based on payments received and applied to the loan are considered delinquent, excluding loans that are cash-secured. The accrual of interest income is generally discontinued when a loan becomes 90 days past due as to principal and interest. When a loan is designated as nonaccrual, the current period’s accrued interest receivable is charged against current earnings while any portions relating to prior periods are charged against the ALLL. Interest payments received on nonaccrual loans are generally applied to the principal balance of the loan. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured and there has been demonstrated performance in accordance with contractual terms. The Company may elect to continue the accrual of interest when the loan is in the process of collection and the realizable value of collateral is sufficient to cover the principal balance and accrued interest.
Loans Held for Sale	Loans Held for Sale — Loans held for sale include loans the Company has demonstrated its ability and intent to sell. Loans held for sale are primarily nonperforming loans. Loans held for sale are carried at the lower of cost or fair value and are evaluated on a loan-by-loan basis.
Impaired Loans	Impaired Loans — Impaired loans, with the exception of groups of smaller-balance homogenous loans that are collectively evaluated for impairment, are defined as loans for which, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays of less than 90 days and monthly payment shortfalls of less than 10% of the contractual payment on a consumer loan generally are not classified as impaired if the Company ultimately expects to recover its full investment. The Company determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Loans that are deemed to be impaired are evaluated in accordance with ASC Topic 310-10-35, Receivables – Subsequent Measurement (ASC 310) and ASC Topic 450-20, Loss Contingencies (ASC 450). Included in impaired loans are troubled debt restructurings. A troubled debt restructuring is a formal restructure of a loan where the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower. The concessions may be granted in various forms, including but not limited to reduction in the stated interest rate, reduction in the loan balance or accrued interest, or extension of the maturity date. Troubled debt restructurings are evaluated in accordance with ASC Topic 310-40, Troubled Debt Restructurings by Creditors. Interest payments on impaired loans are typically applied to principal unless collectability of principal is reasonably assured. Loans that have been modified in a formal restructuring are typically returned to accrual status when there has been a sustained period of performance (generally six months) under the modified terms, the borrower has shown the ability and willingness to repay and the Company expects to collect all amounts due under the modified terms.
Loan Origination Fees and Costs	Loan Origination Fees and Costs — Loan fees and certain costs of originating loans are deferred and the net amount is amortized over the contractual life of the related loans in accordance with ASC Topic 310-20, Nonrefundable Fees and Other Costs.
Allowance for Loan and Lease Losses	Allowance for Loan and Lease Losses — The ALLL is established as losses are estimated to have occurred through a provision for loan losses charged against earnings. Loan losses are charged against the ALLL when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the ALLL. The ALLL is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as new information becomes available.
Allowance for Credit Losses	Allowance for Credit Losses — The allowance for credit losses is established as losses are estimated to have occurred through a provision for credit losses charged to earnings. The allowance for credit losses represents management’s recognition of a separate reserve for off-balance sheet loan commitments and letters of credit. While the ALLL is recorded as a contra-asset to the loan portfolio on the Condensed Consolidated Balance Sheets, the allowance for credit losses is recorded under the caption “Accrued interest and other liabilities”. Although the allowances are presented separately on the balance sheets, any losses incurred from credit losses would be reported as a charge-off in the ALLL, as any loss would be recorded after the off-balance sheet commitment had been funded.
BOLI	BOLI – The Bank has invested in BOLI policies to fund certain future employee benefit costs. The policies are recorded at net realizable value. Changes in the amount that could be realized, including death benefits in excess of the carrying amount, are recorded in the Condensed Consolidated Statements of Income as “Other income”.
Derivative Instruments	Derivative Instruments — Derivative financial instruments are accounted for at fair value. The Company utilizes interest rate swaps to hedge a portion of its exposure to interest rate changes. These instruments are accounted for as cash flow hedges, as defined by ASC Topic 815, Derivatives and Hedging (ASC 815). The Company also uses interest rate swaps to hedge against adverse changes in fair value on fixed-rate loans. These instruments are accounted for as fair value hedges in accordance with ASC 815. The net cash flows from the cash flow and fair value hedges are classified in operating activities within the Condensed Consolidated Statements of Cash Flows with the hedged items. The Company also offers an interest-rate hedge program that includes various derivative products, including swaps, to customers of the Bank. The fair value amounts recognized for derivative instruments and the fair value amounts recognized for the right to reclaim or obligation to return cash collateral are not offset when represented under a master netting arrangement. The Company also uses foreign currency forward contracts (FX forwards) giving it the right to sell underlying currencies at specified future dates and predetermined prices in order to mitigate foreign exchange risk associated with long positions. FX forwards are carried at fair value with changes in value recognized in current earnings as the contracts are not designated as hedging instruments.
Fair Value Measurements	Fair Value Measurements — The Company measures financial assets, financial liabilities, nonfinancial assets and nonfinancial liabilities pursuant to ASC Topic 820, Fair Value Measurement and Disclosures (ASC 820). ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-9 (ASU 2014-09), Revenue from Contracts with Customers. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer, as well as enhanced disclosure requirements. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 to fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2017. In March 2016, the FASB issued ASU 2016-08 which clarified the revenue recognition implementation guidance on principal versus agent considerations and is effective during the same period as ASU 2014-09. In April 2016, the FASB issued ASU 2016-10 which clarified the revenue recognition guidance regarding the identification of performance obligations and the licensing implementation and is effective during the same period as ASU 2014-09. In May 2016, the FASB issued ASU 2016-12 which narrowly amended the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax and transition. ASU 2016-12 is effective during the same period as ASU 2014-09. Effective January 2018, the Company adopted the aforementioned ASUs using the modified retrospective method. In evaluating the effects of these ASUs on its financial statements and disclosures, the Company has determined the following: · The primary revenue lines subject to these ASUs are deposit service charges, investment advisory income and insurance income, which represented 16% of total operating revenue in 2017. · The adoption of these ASUs did not have a material impact on the Company’s financial statements. However, the Company has expanded disclosures on the nature, amount and timing of revenue from the impacted revenue lines. See Note 12 for additional information. Effective January 2018, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). The main objective of ASU 2016-01 is to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Some of the amendments in ASU 2016-01 include the following: 1) Require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) Simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) Require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and 4) Require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value. For public business entities, the amendments of ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-01, through application of a cumulative effect adjustment to retained earnings, did not have a material impact on the consolidated financial statements. See Note 10 for fair value measurement disclosures. Effective January 2018, the Company adopted ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15), regarding how certain cash receipts and cash payments are presented and classified in the statements of cash flows. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The Company implemented ASU 2016-15 during the quarter ended March 31, 2018 with application of the retrospective method and cumulative earnings approach for equity method investments . The adoption of ASU 2016-15 did not have a material impact on the consolidated financial statements. Effective January 2018, the Company adopted ASU 2017-09, Compensation – Stock Compensation (Topic 718), Scope of Modification Accounting (ASU 2017-09). ASU 2017-09 clarifies when changes to the terms and conditions of share-based payment awards must be treated as modifications. Specifically, the new guidance permits companies to make certain changes to awards without accounting for them as modifications. The adoption of ASU 2017-09 did not have a material impact on the consolidated financial statements . In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from AOCI (ASU 2018-02). ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects of the application of the TCJA. ASU 2018-02 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018, and early adoption is permitted. The Company early adopted and applied the provisions of ASU 2018-02 during the quarter ended March 31, 2018. The reclassification from AOCI to retained earnings did not have a material effect on the Company’s financial statements or disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (ASU 2016-02). ASU 2016-02 is intended to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about lease arrangements. For public business entities, this ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018. The Company is currently evaluating the effects of ASU 2016-02 on its financial statements and disclosures by reviewing all existing lease arrangements. Preliminarily, the Company expects the primary impact of ASU 2016-02 will relate to its office locations, which are designated as operating leases. The Company has future operating lease obligations for its locations of $30.4 million that are being evaluated as potential lease assets and liabilities, as defined in ASU 2016-02. The Company has formed a lease implementation team which includes members of accounting, facilities and operations to review lease contracts and the requirements of ASU 2016-02. The implementation team has evaluated third party software solutions to assist with the implementation of ASU 2016-02. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The objective of ASU 2016-13 is to provide financial statement users with decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13 includes provisions that require financial assets measured at amortized cost (such as loans and held to maturity (HTM) debt securities) to be presented at the net amount expected to be collected. This will be accomplished through recognition of an estimate of all current expected credit losses. The estimate will include forecasted information for the timeframe that an entity is able to develop reasonable and supportable forecasts. This is a change from the current practice of recognizing incurred losses based on the probable initial recognition threshold under current GAAP. In addition, credit losses on available for sale (AFS) debt securities will be recorded through an allowance for credit losses rather than as a write-down. Under ASU 2016-13, an entity will be able to record reversals of credit losses in current period income when the estimate of credit losses declines, whereas current GAAP prohibits reflecting those improvements in current period earnings. ASU 2016-13 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2019, and early adoption is permitted for fiscal years, including interim periods, beginning after December 15, 2018. ASU 2016-13 will be applied through a cumulative effect adjustment to retained earnings (modified-retrospective approach), except for debt securities for which an other-than-temporary impairment had been recognized before the effective date. A prospective transition approach is required for these debt securities. The Company is currently evaluating the effects of ASU 2016-13 on its financial statements and disclosures. While the effects cannot yet be quantified, the Company expects ASU 2016-13 to add complexity and costs to its current credit loss evaluation process. In planning for the implementation of ASU 2016-13, the Company has formed a CECL implementation team that includes the CFO, Chief Credit Officer and members of credit, accounting, finance, and information technology. The team meets on a weekly basis and is currently evaluating data requirements and loss methodologies . In the first quarter of 2018, the implementation team finalized its recommendation on a software solution and is currently negotiating a contract. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20) (ASU 2017-08). ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium. Prior to the issuance of this guidance, premiums were amortized as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 requires premiums on purchased callable debt securities that have explicit, noncontingent call features that are callable at fixed prices to be amortized to the earliest call date. There are no accounting changes for securities held at a discount. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018, and early adoption is permitted. ASU 2017-08 will be applied through a cumulative effect adjustment through equity (modified-retrospective approach). The Company is currently evaluating the effects of ASU 2017-08 on its financial statements and disclosures. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018, and early adoption is permitted. ASU 2017-12 requires the modified-retrospective approach for adoption. The Company is currently evaluating the effects of ASU 2017-12 on its financial statements and disclosures and is considering early adoption in 2018.

Nature of Operations and Sign20

Nature of Operations and Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2018
Nature of Operations and Significant Accounting Policies
Schedule of Cash Flow, Supplemental Disclosures	Three months ended March 31, (in thousands) 2018 2017 Cash paid during the period for: Interest $ 2,550 $ 2,210 Income taxes - 1,339

Earnings per Common Share and21

Earnings per Common Share and Dividends Declared per Common Share (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings per Common Share and Dividends Declared per Common Share
Schedule Of Weighted Average Shares Outstanding Used In Calculation Of Basic And Diluted Earnings Per Share	Three months ended March 31, (in thousands, except share and per share amounts) 2018 2017 Net income available to common shareholders $ 12,981 $ 8,614 Dividends and undistributed earnings allocated to participating securities (113) (93) Earnings allocated to common shares (1) $ 12,868 $ 8,521 Weighted average common shares - issued 42,267,374 41,606,755 Average unvested restricted share awards (368,040) (445,315) Weighted average common shares outstanding - basic 41,899,334 41,161,440 Dilutive potential common shares 63,448 423,147 Weighted average common shares outstanding - diluted 41,962,782 41,584,587 Weighted average antidilutive securities outstanding (2) 24,661 10,544 Earnings per common share: Basic $ $ Diluted $ $ Dividends declared per share $ $ (1) Earnings allocated to common shareholders for basic earnings per common share under the two-class method may differ from earnings allocated for diluted earnings per common share when use of the treasury method results in greater dilution than the two-class method. (2) Antidilutive shares excluded from the diluted earnings per common share computation.

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2018
Investments
Summary of amortized cost and estimated fair values of investment securities	At March 31, 2018 At December 31, 2017 Gross Gross Gross Gross Amortized unrealized unrealized Fair Amortized unrealized unrealized Fair (in thousands) cost gains losses value cost gains losses value Available for sale securities (AFS): Trust preferred securities $ 20,343 $ 1,886 $ 459 $ 21,770 $ 20,318 $ 1,870 $ 205 $ 21,983 Corporate debt securities 159,590 1,362 1,601 159,351 140,445 1,153 103 141,495 Municipal securities 3,245 26 3 3,268 3,249 41 15 3,275 Total AFS $ 183,178 $ 3,274 $ 2,063 $ 184,389 $ 164,012 $ 3,064 $ 323 $ 166,753 Held to maturity securities (HTM): Mortgage-backed securities $ 342,581 $ 89 $ 6,486 $ 336,184 $ 318,128 $ 118 $ 3,262 $ 314,984 Trust preferred securities 10,746 1,499 - 12,245 10,721 783 18 11,486 Municipal securities 33,581 44 107 33,518 33,695 73 167 33,601 Total HTM $ 386,908 $ 1,632 $ 6,593 $ 381,947 $ 362,544 $ 974 $ 3,447 $ 360,071
Investments Classified By Contractual Maturity Date	Available for sale Held to maturity Amortized Fair Amortized Fair (in thousands) cost value cost value Due in one year or less $ 3,106 $ 3,102 $ 1,705 $ 1,699 Due after one year through five years 132,397 131,690 23,482 23,440 Due after five years through ten years 21,458 21,626 - - Due after ten years 26,217 27,971 19,140 20,624 Mortgage-backed securities - - 342,581 336,184 $ 183,178 $ 184,389 $ 386,908 $ 381,947
Schedule of Securities in an Unrealized Loss Position	March 31, 2018 Less than 12 months 12 months or greater Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) value loss value loss value loss AFS Trust preferred securities $ 697 $ 46 $ 6,768 $ 413 $ 7,465 $ 459 Corporate debt securities 116,742 1,591 970 10 117,712 1,601 Municipal securities 794 3 - - 794 3 Total AFS $ 118,233 $ 1,640 $ 7,738 $ 423 $ 125,971 $ 2,063 HTM Mortgage-backed securities $ 209,653 $ 3,755 $ 107,050 $ 2,731 $ 316,703 $ 6,486 Municipal securities 21,856 103 680 4 22,536 107 Total HTM $ 231,509 $ 3,858 $ 107,730 $ 2,735 $ 339,239 $ 6,593 December 31, 2017 Less than 12 months 12 months or greater Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) value loss value loss value loss AFS Trust preferred securities $ 700 $ 43 $ 7,020 $ 162 $ 7,720 $ 205 Corporate debt securities 40,068 94 1,216 9 41,284 103 Municipal securities 1,252 15 - - 1,252 15 Total AFS $ 42,020 $ 152 $ 8,236 $ 171 $ 50,256 $ 323 HTM Mortgage-backed securities $ 182,974 $ 1,457 $ 104,464 $ 1,805 $ 287,438 $ 3,262 Trust preferred securities - - 864 18 864 18 Municipal securities 20,445 163 684 4 21,129 167 Total HTM $ 203,419 $ 1,620 $ 106,012 $ 1,827 $ 309,431 $ 3,447
Schedule Of Other Investments	March 31, December 31, (in thousands) 2018 2017 Bank stocks — at cost $ 8,780 $ 7,945 Investment in statutory trusts — equity method 2,174 2,174 Total $ 10,954 $ 10,119

Loans (Tables)

Loans (Tables)	3 Months Ended
	Mar. 31, 2018
Loans
Schedule Of Loan Portfolio Segments	(in thousands) At March 31, 2018 At December 31, 2017 Commercial $ 1,236,721 $ 1,250,356 Real estate - mortgage 1,248,908 1,250,423 Construction & land 230,719 266,081 Consumer 272,702 282,101 Other 97,628 98,916 Loans held for investment 3,086,678 3,147,877 Allowance for loan losses (36,796) (37,941) Unearned net loan fees (2,236) (2,314) Total net loans $ 3,047,646 $ 3,107,622
Schedule Of Major Portfolio Segment And Non Classified And Classified Loan Class	At March 31, 2018 (in thousands) Non-classified Classified Total Commercial Manufacturing $ 69,211 $ 7,368 $ 76,579 Finance and insurance 48,509 1,670 50,179 Healthcare 164,842 2,389 167,231 Real estate services 121,183 6,095 127,278 Construction 62,499 3,218 65,717 Public administration 255,454 534 255,988 Other 448,978 44,771 493,749 1,170,676 66,045 1,236,721 Real estate - mortgage Residential & commercial owner-occupied 477,346 11,137 488,483 Residential & commercial investor 759,847 578 760,425 1,237,193 11,715 1,248,908 Construction & land 230,719 - 230,719 Consumer 267,866 4,836 272,702 Other 96,288 1,340 97,628 Total loans held for investment $ 3,002,742 $ 83,936 $ 3,086,678 Unearned net loan fees (2,236) Net loans held for investment $ 3,084,442 At December 31, 2017 (in thousands) Non-classified Classified Total Commercial Manufacturing $ 82,275 $ 2,912 $ 85,187 Finance and insurance 40,796 1,722 42,518 Healthcare 161,162 2,623 163,785 Real estate services 124,861 3,986 128,847 Construction 67,232 758 67,990 Public administration 239,230 847 240,077 Other 468,562 53,390 521,952 1,184,118 66,238 1,250,356 Real estate - mortgage Residential & commercial owner-occupied 481,061 3,574 484,635 Residential & commercial investor 765,210 578 765,788 1,246,271 4,152 1,250,423 Construction & land 266,081 - 266,081 Consumer 279,191 2,910 282,101 Other 97,542 1,374 98,916 Total loans held for investment $ 3,073,203 $ 74,674 $ 3,147,877 Unearned net loan fees (2,314) Net loans held for investment $ 3,145,563
Schedule Of Allowance For Loan Losses	Three months ended March 31, (in thousands) 2018 2017 Allowance for loan losses, beginning of period Commercial $ 16,837 $ 15,398 Real estate - mortgage 12,690 11,475 Construction & land 4,034 1,997 Consumer 2,617 2,803 Other 826 945 Unallocated 937 675 Total 37,941 33,293 Provision Commercial $ 523 $ 414 Real estate - mortgage 199 317 Construction & land (801) (14) Consumer (17) (279) Other 16 (29) Unallocated (245) 198 Total (325) 607 Charge-offs Commercial $ (1,106) $ (26) Consumer (9) (80) Total (1,115) (106) Recoveries Commercial $ 269 $ 114 Real estate - mortgage 3 5 Construction & land 17 294 Consumer 6 4 Total 295 417 Allowance for loan losses, end of period Commercial $ 16,523 $ 15,900 Real estate - mortgage 12,892 11,797 Construction & land 3,250 2,277 Consumer 2,597 2,448 Other 842 916 Unallocated 692 873 Total $ 36,796 $ 34,211
Schedule Of Loans Held For Investment And ALLL On The Basis Of Impairment Method	At March 31, 2018 At December 31, 2017 Individually evaluated for impairment Collectively evaluated for impairment Individually evaluated for impairment Collectively evaluated for impairment (in thousands) Loans Allowance Loans Allowance Loans Allowance Loans Allowance Commercial $ 52,839 $ 5,546 $ 1,184,337 $ 10,977 $ 56,566 $ 5,862 $ 1,194,005 $ 10,975 Real estate - mortgage 4,354 395 1,243,577 12,497 1,331 109 1,248,166 12,581 Construction & land 1,044 74 227,854 3,176 1,071 91 263,330 3,943 Consumer 1,339 129 271,444 2,468 1,366 148 280,783 2,469 Other 24 24 97,630 818 - - 98,945 826 Unallocated - - - 692 - - - 937 Total $ 59,600 $ 6,168 $ 3,024,842 $ 30,628 $ 60,334 $ 6,210 $ 3,085,229 $ 31,731
Schedule Of Impaired Loans	At March 31, 2018 Recorded Recorded Recorded investment investment Unpaid investment with a with no principal in impaired related related Related (in thousands) balance loans allowance allowance allowance Commercial Manufacturing $ 4,365 $ 4,365 $ 4,365 $ - $ 1,161 Finance and insurance 472 472 16 456 16 Healthcare 602 602 438 164 216 Real estate services 5,035 5,035 5,035 - 270 Construction 1,593 1,593 1,516 77 117 Other 41,973 40,772 39,632 1,140 3,766 54,040 52,839 51,002 1,837 5,546 Real estate - mortgage Residential & commercial owner-occupied 3,605 3,605 4,531 (926) 383 Residential & commercial investor 749 749 171 578 12 4,354 4,354 4,702 (348) 395 Construction & land 1,044 1,044 1,044 - 74 Consumer 1,339 1,339 189 1,150 129 Other 24 24 24 - 24 Total $ 60,801 $ 59,600 $ 56,961 $ 2,639 $ 6,168 At December 31, 2017 Recorded Recorded Recorded investment investment Unpaid investment with a with no principal in impaired related related Related (in thousands) balance loans allowance allowance allowance Commercial Manufacturing $ 3,302 $ 3,302 $ 3,302 $ - $ 238 Finance and insurance 473 473 17 456 17 Healthcare 718 718 459 259 207 Real estate services 7,982 7,982 7,982 - 544 Construction 1,689 1,457 977 480 71 Public administration 313 313 313 - 27 Other 42,660 42,321 41,030 1,291 4,758 57,137 56,566 54,080 2,486 5,862 Real estate - mortgage Residential & commercial owner-occupied 1,159 1,159 1,102 57 94 Residential & commercial investor 172 172 172 - 15 1,331 1,331 1,274 57 109 Construction & land 1,071 1,071 1,071 - 91 Consumer 1,366 1,366 212 1,154 148 Total $ 60,905 $ 60,334 $ 56,637 $ 3,697 $ 6,210 Three months ended March 31, 2018 2017 (in thousands) Average recorded Interest income Average recorded Interest income Commercial Manufacturing $ 3,834 $ 63 $ 2,046 $ 29 Finance and insurance 473 7 59 - Healthcare 660 16 246 6 Real estate services 6,509 20 6,244 50 Construction 1,525 26 1,586 20 Public administration 313 1 - - Other 41,547 719 9,603 179 54,861 852 19,784 284 Real estate - mortgage Residential & commercial owner-occupied 2,382 68 1,328 9 Residential & commercial investor 460 9 2,400 20 2,842 77 3,728 29 Construction & land 1,057 9 1,893 16 Consumer 1,215 10 238 1 Other 150 2 - - Total $ 60,125 $ 950 $ 25,643 $ 330
Schedule Of Transactions Related To Troubled Debt Restructurings	(in thousands) Performing Nonperforming Total Beginning balance at December 31, 2017 $ 52,817 $ 3,682 $ 56,499 New restructurings 4,459 164 4,623 Change in accrual status (11,750) 11,750 - Net paydowns (4,126) (337) (4,463) Charge-offs - (999) (999) Ending balance at March 31, 2018 $ 41,400 $ 14,260 $ 55,660
Schedule Of Troubled Debt Restructurings	Three months ended March 31, 2018 Three months ended March 31, 2017 Pre-modification Post-modification Pre-modification Post-modification outstanding outstanding outstanding outstanding Number of recorded recorded Number of recorded recorded ($ in thousands) contracts investment investment contracts investment investment Commercial Manufacturing 2 $ 720 $ 699 - $ - $ - Healthcare - - - 2 329 193 Construction 2 946 714 - - - Other 3 558 555 3 1,357 1,353 7 $ 2,224 $ 1,968 5 $ 1,686 $ 1,546 Real estate - mortgage Residential & commercial owner-occupied 2 2,109 2,078 - - - Residential & commercial investor 1 578 578 - - - Total 10 $ 4,911 $ 4,624 5 $ 1,686 $ 1,546
Schedule Of Troubled Debt Restructurings That Subsequently Defaulted	Three months ended March 31, 2018 Troubled debt restructurings that subsequently defaulted Number of contracts Recorded investment Commercial Finance and insurance 1 $ 456 Total 1 $ 456
Schedule Of Nonaccrual Loans	(in thousands) At March 31, 2018 At December 31, 2017 Commercial Manufacturing $ 1,846 $ - Finance and insurance 472 473 Healthcare 602 718 Construction 240 681 Other 13,244 4,313 Total commercial 16,404 6,185 Real estate-mortgage Residential & commercial owner-occupied 518 57 Total real estate - mortgage 518 57 Consumer 1,254 1,275 Other 24 - Total nonaccrual loans $ 18,200 $ 7,517
Schedule Of Aging Of The Company's Loan Portfolio	At March 31, 2018 30 - 59 60 - 89 90 days or more Days Days 90+ Days Total past due and (in thousands) past due past due past due past due Current Total loans accruing Commercial Manufacturing $ 406 $ 479 $ 1,366 $ 2,251 $ 74,328 $ 76,579 $ - Finance and insurance 3,962 - 456 4,418 45,761 50,179 - Healthcare 199 10 113 322 166,909 167,231 - Real estate services 60 - - 60 127,218 127,278 - Construction 251 600 - 851 64,866 65,717 - Public administration - - - - 255,988 255,988 - Other 9,362 11,000 1,117 21,479 472,270 493,749 - 14,240 12,089 3,052 29,381 1,207,340 1,236,721 - Real estate - mortgage Residential & commercial owner-occupied 1,374 - - 1,374 487,109 488,483 - Residential & commercial investor 629 - - 629 759,796 760,425 - 2,003 - - 2,003 1,246,905 1,248,908 - Construction & land - - - - 230,719 230,719 - Consumer - 10 1,123 1,133 271,569 272,702 - Other - - - - 97,628 97,628 - Total loans held for investment $ 16,243 $ 12,099 $ 4,175 $ 32,517 $ 3,054,161 $ 3,086,678 $ - Unearned net loan fees (2,236) Net loans held for investment $ 3,084,442 At December 31, 2017 Recorded investment in loans 30 - 59 60 - 89 90 days or more Days Days 90+ Days Total past due and (in thousands) past due past due past due past due Current Total loans accruing Commercial Manufacturing $ - $ - $ - $ - $ 85,187 $ 85,187 $ - Finance and insurance - 456 213 669 41,849 42,518 213 Healthcare 370 - 113 483 163,302 163,785 - Real estate services 1,503 - 135 1,638 127,209 128,847 135 Construction 721 600 681 2,002 65,988 67,990 - Public administration - - - - 240,077 240,077 - Other 3,463 459 2,302 6,224 515,728 521,952 - 6,057 1,515 3,444 11,016 1,239,340 1,250,356 348 Real estate - mortgage Residential & commercial owner-occupied 426 689 - 1,115 483,520 484,635 - Residential & commercial investor 875 299 - 1,174 764,614 765,788 - 1,301 988 - 2,289 1,248,134 1,250,423 - Construction & land 730 - - 730 265,351 266,081 - Consumer 1,423 15 1,107 2,545 279,556 282,101 - Other - 2 - 2 98,914 98,916 - Total loans held for investment $ 9,511 $ 2,520 $ 4,551 $ 16,582 $ 3,131,295 $ 3,147,877 $ 348 Unearned net loan fees (2,314) Net loans held for investment $ 3,145,563

Accumulated Other Comprehensi24

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2018
Accumulated Other Comprehensive Income
Schedule of reclassifications out of accumulated comprehensive income	Three months ended March 31, AOCI component (in thousands) 2018 2017 Line item in Condensed Consolidated Statements of Income Available for sale securities: Realized loss $ - $ (3) Net (gain) loss on securities, other assets and OREO Taxes - 1 Provision for income taxes Subtotal - (2) Held to maturity securities: Amortization of net unrealized gain on HTM securities 308 454 Interest on taxable / nontaxable securities Taxes (75) (173) Provision for income taxes Subtotal 233 281 Cash flow hedges: Loans (16) 249 Interest and fees on loans Debt (241) (358) Interest on subordinated debentures and notes payable Realized loss (257) (109) Taxes 63 42 Provision for income taxes Subtotal (194) (67) Total reclassifications out of AOCI $ 39 $ 212
Schedule of beginning and ending balances of AOCI and changes during the period	Accumulated other comprehensive income (in thousands) AFS HTM Cash flow hedges Total Balance at December 31, 2017 $ 1,700 $ 2,125 $ (3,966) $ (141) Other comprehensive income loss items (1,155) - (465) (1,620) Reclassification to earnings - (233) 194 (39) Reclassification to retained earnings 369 448 (847) (30) Other comprehensive income (loss), net of tax (786) 215 (1,118) (1,689) Balance at March 31, 2018 $ 914 $ 2,340 $ (5,084) $ (1,830)

Derivatives (Tables)

Derivatives (Tables)	3 Months Ended
	Mar. 31, 2018
Derivatives
Schedule Of Derivative Instruments In The Statements Of Financial Position	Asset derivatives Liability derivatives Fair value at Fair value at Balance sheet March 31, December 31, Balance sheet March 31, December 31, (in thousands) classification 2018 2017 classification 2018 2017 Derivatives designated as hedging instruments under ASC 815: Cash flow hedge - interest rate swap Other assets $ 453 $ 113 Accrued interest and other liabilities $ 7,318 $ 6,732 Fair value hedge - interest rate swap Other assets $ 1,649 $ 628 Accrued interest and other liabilities $ 186 $ 633 Derivatives not designated as hedging instruments under ASC 815: Interest rate swap Other assets $ 3,255 $ 2,081 Accrued interest and other liabilities $ 3,276 $ 2,176 Foreign exchange forward contracts Other assets $ 40 $ 28 Accrued interest and other liabilities $ 33 $ 44
Schedule Of Fair Value Of Derivative Financial Instruments And Their Classification On Condensed Consolidated Balance Sheets	At March 31, 2018 Assets Gross amounts not offset Gross Gross Financial Net (in thousands) amounts amounts offset Net amounts Instruments Collateral Amount Derivatives designated as hedges (1) $ 2,102 $ - $ 2,102 $ (1,709) $ - $ 393 Derivatives not designated as hedges (1) 3,295 - 3,295 (2,775) - 520 Total $ 5,397 $ - $ 5,397 $ (4,484) $ - $ 913 At March 31, 2018 Liabilities Gross amounts not offset Gross Gross Financial Net (in thousands) amounts amounts offset Net amounts Instruments Collateral Amount Derivatives designated as hedges (2) $ (7,504) $ - $ (7,504) $ 1,709 $ 5,795 $ - Derivatives not designated as hedges (2) (3,309) - (3,309) 2,775 638 104 Securities sold under agreements to repurchase (3) (42,268) - (42,268) - 42,268 - Total $ (53,081) $ - $ (53,081) $ 4,484 $ 48,701 $ 104 At December 31, 2017 Assets Gross amounts not offset Gross Gross Financial Net (in thousands) amounts amounts offset Net amounts Instruments Collateral Amount Derivatives designated as hedges (1) $ 741 $ - $ 741 $ (741) $ - $ - Derivatives not designated as hedges (1) 2,109 - 2,109 (1,222) - 887 Total $ 2,850 $ - $ 2,850 $ (1,963) $ - $ 887 At December 31, 2017 Liabilities Gross amounts not offset Gross Gross Financial Net (in thousands) amounts amounts offset Net amounts Instruments Collateral Amount Derivatives designated as hedges (2) $ (7,365) $ - $ (7,365) $ 741 $ 6,624 $ - Derivatives not designated as hedges (2) (2,220) - (2,220) 1,222 968 (30) Securities sold under agreements to repurchase (3) (52,959) - (52,959) - 52,959 - Total $ (62,544) $ - $ (62,544) $ 1,963 $ 60,551 $ (30) (1) Included in other assets. (2) Included in accrued interest and other liabilities. (3) Separately stated in the Condensed Consolidated Balance Sheets.
Schedule Of Notional Amounts Of Outstanding Derivative Positions	(in thousands) Notional Fixed rate Termination date Hedged item - Junior subordinated debentures issued by: CoBiz Statutory Trust I $ 20,000 % March 17, 2022 CoBiz Capital Trust II $ 30,000 % April 23, 2020 CoBiz Capital Trust III $ 20,000 % March 30, 2024

Borrowed Funds (Tables)

Borrowed Funds (Tables)	3 Months Ended
	Mar. 31, 2018
Borrowed Funds
Schedule of short-term borrowings	March 31, December 31, (in thousands) 2018 2017 Securities sold under agreements to repurchase (secured by pledge of mortgage-backed securities with an estimated fair value of $43,113 and $54,018, respectively) $ 42,268 $ 52,959 Other short-term borrowings 97,818 77,640

Segments (Tables)

Segments (Tables)	3 Months Ended
	Mar. 31, 2018
Segments
Summary Of Results Of Operations By Operating Segment	Three months ended March 31, 2018 Corporate Income Statement Commercial Fee-Based Support and (in thousands) Banking Lines Other Consolidated Total interest income $ 37,688 $ - $ 89 $ 37,777 Total interest expense 1,341 - 1,827 3,168 Provision for loan losses (316) - (9) (325) Noninterest income 3,746 5,114 101 8,961 Noninterest expense 6,045 4,346 18,179 28,570 Management fees and allocations, net of tax 13,563 475 (14,038) - Provision (benefit) for income taxes 7,313 214 (5,183) 2,344 Net income (loss) $ 13,488 $ 79 $ (586) $ 12,981 Three months ended March 31, 2017 Corporate Income Statement Commercial Fee-Based Support and (in thousands) Banking Lines Other Consolidated Total interest income $ 32,994 $ - $ 87 $ 33,081 Total interest expense 1,191 13 1,799 3,003 Provision for loan losses 692 - (85) 607 Noninterest income 3,404 4,653 271 8,328 Noninterest expense 9,548 4,504 13,062 27,114 Management fees and allocations, net of tax 7,704 275 (7,979) - Provision (benefit) for income taxes 7,583 48 (5,560) 2,071 Net income (loss) $ 9,680 $ (187) $ (879) $ 8,614

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Measurements
Financial Assets And Liabilities Measured At Fair Value On Recurring Basis	Fair value measurements using: Quoted prices in Significant Significant active markets for observable unobservable Balance at identical assets inputs inputs (in thousands) March 31, 2018 (Level 1) (Level 2) (Level 3) Assets Available for sale securities: Trust preferred securities $ 21,770 $ 353 $ 12,289 $ 9,128 Corporate debt securities 159,351 - 159,351 - Municipal securities 3,268 - 3,268 - Total available for sale securities $ 184,389 $ 353 $ 174,908 $ 9,128 Derivatives: Cash flow hedges $ 453 $ - $ 453 $ - Fair value hedges 1,649 - 1,649 - Non-designated hedges 3,255 - 3,255 - Foreign exchange forward contracts 40 - 40 - Total derivative assets $ 5,397 $ - $ 5,397 $ - Liabilities Derivatives: Cash flow hedges $ 7,318 $ - $ 7,318 $ - Fair value hedges 186 - 186 - Non-designated hedges 3,276 - 3,276 - Foreign exchange forward contracts 33 - 33 - Total derivative liabilities $ 10,813 $ - $ 10,813 $ - Fair value measurements using: Quoted prices in Significant Significant active markets for observable unobservable Balance at identical assets inputs inputs (in thousands) December 31, 2017 (Level 1) (Level 2) (Level 3) Assets Available for sale securities: Trust preferred securities $ 21,983 $ 363 $ 12,521 $ 9,099 Corporate debt securities 141,495 - 141,495 - Municipal securities 3,275 - 3,275 - Total available for sale securities $ 166,753 $ 363 $ 157,291 $ 9,099 Derivatives: Cash flow hedges $ 113 $ - $ 113 $ - Fair value hedges 628 - 628 - Non-designated hedges 2,081 - 2,081 - Foreign exchange forward contracts 28 - 28 - Total derivative assets $ 2,850 $ - $ 2,850 $ - Liabilities Derivatives: Cash flow hedges $ 6,732 $ - $ 6,732 $ - Fair value hedge 633 - 633 - Non-designated hedges 2,176 - 2,176 - Foreign exchange forward contracts 44 - 44 - Total derivative liabilities $ 9,585 $ - $ 9,585 $ -
Reconciliation Of Financial Assets Measured At Fair Value On Recurring Basis Using Significant Unobservable Inputs	Three months ended March 31, (in thousands) 2018 2017 Beginning balance $ 9,099 $ 9,448 Transfers and purchases - - Net accretion 30 29 Sales / calls / maturities - - Unrealized gain (loss) included in comprehensive income (1) 540 Ending balance $ 9,128 $ 10,017
Schedule Of Assets Measured At Fair Value On A Nonrecurring Basis	Fair value measurements using: Quoted prices in Significant Significant active markets for observable unobservable identical assets inputs inputs (in thousands) Total (Level 1) (Level 2) (Level 3) At March 31, 2018 Impaired loans $ 15,649 $ - $ - $ 15,649 OREO $ 5,245 $ - $ - $ 5,245 At December 31, 2017 Impaired loans $ 3,792 $ - $ - $ 3,792 OREO $ 5,351 $ - $ - $ 5,351
Schedule of Gains And Losses Recorded In Relation To Assets And Liabilities Measured On Nonrecurring Basis	Gain for the three months ended March 31, (in thousands) 2018 2017 Impaired loans $ (1,286) $ 404
Reconciliation Of Other Real Estate Owned Fair Value Measurement	At At (in thousands) March 31, 2018 December 31, 2017 OREO recorded at fair value $ 5,245 $ 5,351 Estimated selling costs (266) (272) OREO $ 4,979 $ 5,079
Fair Value Measurements, Recurring And Nonrecurring, Valuation Techniques	At March 31, 2018 Fair value Weighted Category (in thousands) Valuation technique Unobservable input average Range Trust preferred securities $ 9,128 Market approach Discount to carrying value using broker quotes or observable prices on similar securities 7 % 5% - 15% Impaired loans: Commercial $ 13,403 Sales comparison (1) Management discount for asset type 82 % 0% - 90% Real estate - mortgage 1,096 Sales comparison (2) Sales comparison adjustments (2) % (4)% - 0% Consumer 1,150 Sales comparison (2) Sales comparison adjustments (6) % (20)% - (4)% Total impaired loans $ 15,649 OREO: Commercial $ 190 Property appraisals (2) Management discount for property type 0 % NA Construction & land 5,055 Property appraisals (2) Management discount for property type 50 % NA Total OREO $ 5,245 At December 31, 2017 Fair value Weighted Category (in thousands) Valuation technique Unobservable input average Range Trust preferred securities $ 9,099 Market approach Discount to carrying value using broker quotes or observable prices on similar securities 7 % 5% - 15% Impaired loans: Commercial $ 2,581 Sales comparison (1) Management discount for asset type 59 % 0% - 98% Real estate - mortgage 57 Sales comparison (2) Sales comparison adjustments (4) % NA Consumer 1,154 Sales comparison (2) Sales comparison adjustments (11) % (7)% - (20)% Total impaired loans $ 3,792 OREO: Commercial $ 190 Property appraisals (2) Management discount for property type 0 % NA Construction & land 5,161 Property appraisals (2) Management discount for property type 17 % NA Total OREO $ 5,351 (1) Discount represents management’s discounts applied to market valuation of various business asset types including accounts receivable and other commercial assets. (2) The fair value of OREO and collateral-dependent impaired loans is based on third-party property appraisals. The majority of the appraisals utilize at least two valuation approaches or a combination of approaches including a market approach, where prices and other relevant information generated by market transactions involving similar or comparable properties are used to determine fair value. Appraisals may include an ‘as is’ and ‘upon completion’ valuation approach. Adjustments are routinely made in the appraisal process by third-party appraisers to adjust for differences between the comparable sales and income data. Adjustments also result from the consideration of relevant economic and demographic factors with the potential to affect property values. Also, prospective values are based on the market conditions which exist at the date of inspection combined with informed forecasts based on current trends in supply and demand for the property types under appraisal. Positive adjustments disclosed in these tables represent increases and negative adjustments represent decreases in fair value.
Schedule Of Estimated Fair Value Of Financial Instruments	Fair Value March 31, 2018 December 31, 2017 Classification Carrying Estimated Carrying Estimated (in thousands) level value fair value value fair value Financial assets: Cash and cash equivalents $ 67,680 $ 67,680 $ 80,180 $ 80,180 Investment securities available for sale (1) 184,389 184,389 166,753 166,753 Investment securities held to maturity (1) 386,908 381,947 362,544 360,071 Other investments 2,174 2,174 2,174 2,174 Loans — net 3,047,646 3,000,398 3,107,622 3,080,935 Accrued interest receivable (2) 13,506 13,506 14,150 14,150 Derivatives 5,397 5,397 2,850 2,850 Financial liabilities: Deposits $ 3,179,766 $ 3,178,891 $ 3,225,220 $ 3,224,417 Securities sold under agreements to repurchase 42,268 35,341 52,959 49,436 Short-term borrowings 97,818 97,818 77,640 77,640 Accrued interest payable (2) 1,696 1,696 1,077 1,077 Subordinated notes payable 59,217 56,832 59,195 58,451 Junior subordinated debentures 72,166 72,166 72,166 72,166 Derivatives 10,813 10,813 9,585 9,585 (1) AFS and HTM securities are primarily classified as Level 2 and Level 3 of the fair value hierarchy. (2) Accrued interest receivable/payables are classified in the same level hierarchy as the underlying assets and liabilities.

Regulatory Matters (Tables)

Regulatory Matters (Tables)	3 Months Ended
	Mar. 31, 2018
Regulatory Matters
Schedule Of Regulatory Capital Ratios Of The Company And The Bank	At March 31, 2018 Capitalized Ratio Bank Company Minimum ratio (in thousands) Ratios Ratios Well (1) plus fully phased-in CCB Common equity tier 1 capital 10.7 % 10.5 % 6.5 % % Tier 1 capital 10.7 % 12.4 % 8.0 % % Total capital 13.7 % 15.1 % 10.0 % % Tier 1 leverage 9.1 % 10.6 % 5.0 % % (1) The ratios for the well-capitalized requirement are only applicable to the Bank. However, the Company manages its capital position as if the requirement applies to the consolidated entity and has presented the ratios as if they also applied to the Company.

Revenue and Expense - (Tables)

Revenue and Expense - (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue and Expense
Schedule of noninterest income disaggregated by revenue source	Three months ended Noninterest income March 31, (in thousands) 2018 2017 Depository service charges $ 1,655 $ 1,745 Investment advisory income 1,655 1,531 Property and casualty 1,232 1,129 Employee benefits 2,075 1,639 Bonus income and merchant and bankcard fees 629 820 Revenue from contracts with customers 7,246 6,864 Loan fees 743 516 Other customer service fees 239 233 Bank-owned life insurance 398 349 Other investments 175 375 Derivative valuation 156 (57) Other 4 48 Other noninterest income 1,715 1,464 Total noninterest income $ 8,961 $ 8,328
Schedule Of Other Income And Other Expense	Three months ended Other noninterest expense March 31, (in thousands) 2018 2017 Marketing and business development $ 701 $ Service contracts 1,345 Professional fees 1,532 Office supplies and delivery 251 Other 852 Total $ 4,681 $

Nature of Operations and Sign31

Nature of Operations and Significant Accounting Policies - Organization (Details)	3 Months Ended
	Mar. 31, 2018location
Denver, Colorado
Organization
Number of branches	7
Boulder, Colorado
Organization
Number of branches	1
Vail, Colorado
Organization
Number of branches	1
Colorado Springs, Colorado
Organization
Number of branches	1
Fort Collins, Colorado
Organization
Number of branches	1
Phoenix, Arizona
Organization
Number of branches	4

Nature of Operations and Sign32

Nature of Operations and Significant Accounting Policies - Cash and Cash Equivalents to Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Supplemental disclosure of certain cash and cash equivalents
Interest	$ 2,550	$ 2,210
Income taxes		$ 1,339
Investments
Trading Securities	$ 0		$ 0
Impaired loans
Impaired Loans, Threshold for payment shortfall to be considered for impairment, percentage of contractual payment	10.00%

Recent Accounting Pronounceme33

Recent Accounting Pronouncements (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Accounting Standards Update 2014-09
Recent Accounting Pronouncements
Percentage of total operating revenue		16.00%
Accounting Standards Update 2016-02 | Forecast
Recent Accounting Pronouncements
Future operating lease obligations	$ 30.4

Earnings per Common Share - Sch

Earnings per Common Share - Schedule of Weighted Average Shares Outstanding Used in Calculation of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings per Common Share and Dividends Declared per Common Share
Net income available to common shareholders	$ 12,981	$ 8,614
Dividends and undistributed earnings allocated to participating securities	(113)	(93)
Earnings allocated to common shares	$ 12,868	$ 8,521
Weighted average common shares - issued	42,267,374	41,606,755
Average unvested restricted share awards	(368,040)	(445,315)
Weighted average common shares outstanding - basic	41,899,334	41,161,440
Dilutive potential common shares	63,448	423,147
Weighted average common shares outstanding - diluted	41,962,782	41,584,587
Weighted average antidilutive securities outstanding	24,661	10,544
Basic earnings per common share	$ 0.31	$ 0.21
Diluted earnings per common share	0.31	0.20
Common Stock, Dividends, Per Share, Declared	$ 0.055	$ 0.050

Investments - Reconciliation fr

Investments - Reconciliation from Amortized Cost to Fair Value of Investment Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Available for sale securities (AFS):
Available for sale securities, Amortized cost, Amortized cost	$ 183,178	$ 164,012
Gross unrealized gains	3,274	3,064
Gross unrealized losses	2,063	323
Fair value	184,389	166,753
Held to maturity securities (HTM):
Amortized cost	386,908	362,544
Gross unrealized gains	1,632	974
Gross unrealized losses	6,593	3,447
Fair value	381,947	360,071
Mortgage-backed securities
Held to maturity securities (HTM):
Amortized cost	342,581	318,128
Gross unrealized gains	89	118
Gross unrealized losses	6,486	3,262
Fair value	336,184	314,984
Trust preferred securities
Available for sale securities (AFS):
Available for sale securities, Amortized cost, Amortized cost	20,343	20,318
Gross unrealized gains	1,886	1,870
Gross unrealized losses	459	205
Fair value	21,770	21,983
Held to maturity securities (HTM):
Amortized cost	10,746	10,721
Gross unrealized gains	1,499	783
Gross unrealized losses		18
Fair value	12,245	11,486
Corporate debt securities
Available for sale securities (AFS):
Available for sale securities, Amortized cost, Amortized cost	159,590	140,445
Gross unrealized gains	1,362	1,153
Gross unrealized losses	1,601	103
Fair value	159,351	141,495
Municipal securities
Available for sale securities (AFS):
Available for sale securities, Amortized cost, Amortized cost	3,245	3,249
Gross unrealized gains	26	41
Gross unrealized losses	3	15
Fair value	3,268	3,275
Held to maturity securities (HTM):
Amortized cost	33,581	33,695
Gross unrealized gains	44	73
Gross unrealized losses	107	167
Fair value	$ 33,518	$ 33,601

Investments - Schedule of Amort

Investments - Schedule of Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Available-for-sale, Amortized cost
Available for sale securities, Amortized cost, Due in one year or less	$ 3,106
Available for sale securities, Amortized cost, Due after one year through five years	132,397
Available for sale securities, Amortized cost, Due after five years through ten years	21,458
Available for sale securities, Amortized cost, Due after ten years	26,217
Available for sale securities, Amortized cost, Amortized cost	183,178	$ 164,012
Available-for-sale, Fair value
Available for sale securities, Estimated fair value, Due in one year or less	3,102
Available for sale securities, Estimated fair value, Due after one year through five years	131,690
Available for sale securities, Estimated fair value, Due after five years through ten years	21,626
Available for sale securities, Estimated fair value, Due after ten years	27,971
Fair value	184,389	166,753
Held-to-maturity, Amortized cost
Held to maturity securities, Amortized cost, Due in one year or less	1,705
Held to maturity securities, Amortized cost, Due after one year through five years	23,482
Held to maturity securities, Amortized cost, Due after ten years	19,140
Held to maturity securities, Amortized cost, Mortgage-backed securities	342,581
Held-to-maturity Securities, Total	386,908	362,544
Held-to-maturity, Fair value
Held to maturity securities, Estimated fair value, Due in one year or less	1,699
Held to maturity securities, Estimated fair value, Due after one year through five years	23,440
Held to maturity securities, Estimated fair value, Due after ten years	20,624
Held to maturity securities, Estimated fair value, Mortgage-backed securities	336,184
Fair value	$ 381,947	$ 360,071

Investments - Narrative (Detail

Investments - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Investment securities
Public and governmental deposits	$ 126.4	$ 116.5
Collateral Pledged
Investment securities
Investment securities pledged to secure public and governmental deposits	$ 166.9	$ 164.4

Investments - Schedule of Secur

Investments - Schedule of Securities Related to Unrecognized OTTI (Details) $ in Thousands	Mar. 31, 2018USD ($)security	Dec. 31, 2017USD ($)security
Securities in Continuous Unrealized Loss Positions
Number of credit-impaired securities | security	0	0
Securities in unrealized loss position | security	211	181
Available for sale securities in continuous unrealized loss position, Fair Value, Less than 12 months	$ 118,233	$ 42,020
Available for sale securities in continuous unrealized loss position, Fair Value, 12 months or greater	7,738	8,236
Available for sale securities in continuous unrealized loss position, Fair Value	125,971	50,256
Available for sale securities in continuous unrealized loss position, Unrealized loss, Less than 12 months	1,640	152
Available for sale securities in continuous unrealized loss position, Unrealized loss, 12 months or greater	423	171
Available for sale securities in continuous unrealized loss position, Unrealized loss	2,063	323
HTM securities in continuous unrealized loss position, Fair Value, Less than 12 months	231,509	203,419
HTM securities in continuous unrealized loss position, Fair value, 12 months or greater	107,730	106,012
HTM securities in continuous unrealized loss position, Fair Value, Total	339,239	309,431
HTM securities in continuous unrealized loss position, Unrealized loss, Less than 12 months	3,858	1,620
HTM securities in continuous unrealized loss position, Unrealized loss, 12 months or greater	2,735	1,827
HTM securities in continuous unrealized loss position, Unrealized loss, Total	6,593	3,447
Mortgage-backed securities
Securities in Continuous Unrealized Loss Positions
HTM securities in continuous unrealized loss position, Fair Value, Less than 12 months	209,653	182,974
HTM securities in continuous unrealized loss position, Fair value, 12 months or greater	107,050	104,464
HTM securities in continuous unrealized loss position, Fair Value, Total	316,703	287,438
HTM securities in continuous unrealized loss position, Unrealized loss, Less than 12 months	3,755	1,457
HTM securities in continuous unrealized loss position, Unrealized loss, 12 months or greater	2,731	1,805
HTM securities in continuous unrealized loss position, Unrealized loss, Total	6,486	3,262
Trust preferred securities
Securities in Continuous Unrealized Loss Positions
Available for sale securities in continuous unrealized loss position, Fair Value, Less than 12 months	697	700
Available for sale securities in continuous unrealized loss position, Fair Value, 12 months or greater	6,768	7,020
Available for sale securities in continuous unrealized loss position, Fair Value	7,465	7,720
Available for sale securities in continuous unrealized loss position, Unrealized loss, Less than 12 months	46	43
Available for sale securities in continuous unrealized loss position, Unrealized loss, 12 months or greater	413	162
Available for sale securities in continuous unrealized loss position, Unrealized loss	459	205
HTM securities in continuous unrealized loss position, Fair value, 12 months or greater		864
HTM securities in continuous unrealized loss position, Fair Value, Total		864
HTM securities in continuous unrealized loss position, Unrealized loss, 12 months or greater		18
HTM securities in continuous unrealized loss position, Unrealized loss, Total		18
Corporate debt securities
Securities in Continuous Unrealized Loss Positions
Available for sale securities in continuous unrealized loss position, Fair Value, Less than 12 months	116,742	40,068
Available for sale securities in continuous unrealized loss position, Fair Value, 12 months or greater	970	1,216
Available for sale securities in continuous unrealized loss position, Fair Value	117,712	41,284
Available for sale securities in continuous unrealized loss position, Unrealized loss, Less than 12 months	1,591	94
Available for sale securities in continuous unrealized loss position, Unrealized loss, 12 months or greater	10	9
Available for sale securities in continuous unrealized loss position, Unrealized loss	1,601	103
Municipal securities
Securities in Continuous Unrealized Loss Positions
Available for sale securities in continuous unrealized loss position, Fair Value, Less than 12 months	794	1,252
Available for sale securities in continuous unrealized loss position, Fair Value	794	1,252
Available for sale securities in continuous unrealized loss position, Unrealized loss, Less than 12 months	3	15
Available for sale securities in continuous unrealized loss position, Unrealized loss	3	15
HTM securities in continuous unrealized loss position, Fair Value, Less than 12 months	21,856	20,445
HTM securities in continuous unrealized loss position, Fair value, 12 months or greater	680	684
HTM securities in continuous unrealized loss position, Fair Value, Total	22,536	21,129
HTM securities in continuous unrealized loss position, Unrealized loss, Less than 12 months	103	163
HTM securities in continuous unrealized loss position, Unrealized loss, 12 months or greater	4	4
HTM securities in continuous unrealized loss position, Unrealized loss, Total	$ 107	$ 167

Investments - Schedule of Other

Investments - Schedule of Other Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Investments
Bank stocks - at cost	$ 8,780	$ 7,945
Investment in statutory trusts - equity method	2,174	2,174
Total	$ 10,954	$ 10,119

Loans - Schedule of Loan Portfo

Loans - Schedule of Loan Portfolio Segments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Loan portfolio segments
Loans held for investment	$ 3,086,678	$ 3,147,877
Allowance for loan losses	(36,796)	(37,941)	$ (34,211)	$ (33,293)
Unearned net loan fees	(2,236)	(2,314)
Total net loans	3,047,646	3,107,622
Commercial
Loan portfolio segments
Loans held for investment	1,236,721	1,250,356
Allowance for loan losses	(16,523)	(16,837)	(15,900)	(15,398)
Real estate - mortgage
Loan portfolio segments
Loans held for investment	1,248,908	1,250,423
Allowance for loan losses	(12,892)	(12,690)	(11,797)	(11,475)
Construction and land
Loan portfolio segments
Loans held for investment	230,719	266,081
Allowance for loan losses	(3,250)	(4,034)	(2,277)	(1,997)
Consumer
Loan portfolio segments
Loans held for investment	272,702	282,101
Allowance for loan losses	(2,597)	(2,617)	(2,448)	(2,803)
Other
Loan portfolio segments
Loans held for investment	97,628	98,916
Allowance for loan losses	$ (842)	$ (826)	$ (916)	$ (945)

Loans - Acquired loans and recl

Loans - Acquired loans and reclassifications (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Loans
Overdraft demand deposits reclassified from deposits to loans	$ 0.2	$ 0.2

Loans - Schedule of Major Portf

Loans - Schedule of Major Portfolio Segment and Non-Classified and Classified Loan Class (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Loan portfolio segments
Loans held for investment	$ 3,086,678	$ 3,147,877
Unearned net loan fees	(2,236)	(2,314)
Total loans	3,084,442	3,145,563
Non-classified
Loan portfolio segments
Loans held for investment	3,002,742	3,073,203
Classified
Loan portfolio segments
Loans held for investment	83,936	74,674
Commercial
Loan portfolio segments
Loans held for investment	1,236,721	1,250,356
Commercial | Non-classified
Loan portfolio segments
Loans held for investment	1,170,676	1,184,118
Commercial | Classified
Loan portfolio segments
Loans held for investment	66,045	66,238
Commercial | Manufacturing
Loan portfolio segments
Loans held for investment	76,579	85,187
Commercial | Manufacturing | Non-classified
Loan portfolio segments
Loans held for investment	69,211	82,275
Commercial | Manufacturing | Classified
Loan portfolio segments
Loans held for investment	7,368	2,912
Commercial | Finance and insurance
Loan portfolio segments
Loans held for investment	50,179	42,518
Commercial | Finance and insurance | Non-classified
Loan portfolio segments
Loans held for investment	48,509	40,796
Commercial | Finance and insurance | Classified
Loan portfolio segments
Loans held for investment	1,670	1,722
Commercial | Health care
Loan portfolio segments
Loans held for investment	167,231	163,785
Commercial | Health care | Non-classified
Loan portfolio segments
Loans held for investment	164,842	161,162
Commercial | Health care | Classified
Loan portfolio segments
Loans held for investment	2,389	2,623
Commercial | Real estate services
Loan portfolio segments
Loans held for investment	127,278	128,847
Commercial | Real estate services | Non-classified
Loan portfolio segments
Loans held for investment	121,183	124,861
Commercial | Real estate services | Classified
Loan portfolio segments
Loans held for investment	6,095	3,986
Commercial | Construction
Loan portfolio segments
Loans held for investment	65,717	67,990
Commercial | Construction | Non-classified
Loan portfolio segments
Loans held for investment	62,499	67,232
Commercial | Construction | Classified
Loan portfolio segments
Loans held for investment	3,218	758
Commercial | Wholesale and retail trade
Loan portfolio segments
Loans held for investment		240,077
Commercial | Public administration
Loan portfolio segments
Loans held for investment	255,988	240,077
Commercial | Public administration | Non-classified
Loan portfolio segments
Loans held for investment	255,454	239,230
Commercial | Public administration | Classified
Loan portfolio segments
Loans held for investment	534	847
Commercial | Commercial - Other
Loan portfolio segments
Loans held for investment	493,749	521,952
Commercial | Commercial - Other | Non-classified
Loan portfolio segments
Loans held for investment	448,978	468,562
Commercial | Commercial - Other | Classified
Loan portfolio segments
Loans held for investment	44,771	53,390
Real estate - mortgage
Loan portfolio segments
Loans held for investment	1,248,908	1,250,423
Real estate - mortgage | Residential and commercial owner-occupied
Loan portfolio segments
Loans held for investment	488,483	484,635
Real estate - mortgage | Residential and commercial investor
Loan portfolio segments
Loans held for investment	760,425	765,788
Real estate - mortgage | Non-classified
Loan portfolio segments
Loans held for investment	1,237,193	1,246,271
Real estate - mortgage | Non-classified | Residential and commercial owner-occupied
Loan portfolio segments
Loans held for investment	477,346	481,061
Real estate - mortgage | Non-classified | Residential and commercial investor
Loan portfolio segments
Loans held for investment	759,847	765,210
Real estate - mortgage | Classified
Loan portfolio segments
Loans held for investment	11,715	4,152
Real estate - mortgage | Classified | Residential and commercial owner-occupied
Loan portfolio segments
Loans held for investment	11,137	3,574
Real estate - mortgage | Classified | Residential and commercial investor
Loan portfolio segments
Loans held for investment	578	578
Construction and land
Loan portfolio segments
Loans held for investment	230,719	266,081
Construction and land | Non-classified
Loan portfolio segments
Loans held for investment	230,719	266,081
Consumer
Loan portfolio segments
Loans held for investment	272,702	282,101
Consumer | Non-classified
Loan portfolio segments
Loans held for investment	267,866	279,191
Consumer | Classified
Loan portfolio segments
Loans held for investment	4,836	2,910
Other
Loan portfolio segments
Loans held for investment	97,628	98,916
Other | Non-classified
Loan portfolio segments
Loans held for investment	96,288	97,542
Other | Classified
Loan portfolio segments
Loans held for investment	$ 1,340	$ 1,374

Loans - Schedule of Allowance f

Loans - Schedule of Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Allowance for loan losses
Allowance for loan losses, beginning of period	$ 37,941	$ 33,293
Provision	(325)	607
Charge-offs	(1,115)	(106)
Net recoveries of impaired loans	295	417
Allowance for loan losses, end of period	36,796	34,211
Commercial
Allowance for loan losses
Allowance for loan losses, beginning of period	16,837	15,398
Provision	523	414
Charge-offs	(1,106)	(26)
Net recoveries of impaired loans	269	114
Allowance for loan losses, end of period	16,523	15,900
Real estate - mortgage
Allowance for loan losses
Allowance for loan losses, beginning of period	12,690	11,475
Provision	199	317
Net recoveries of impaired loans	3	5
Allowance for loan losses, end of period	12,892	11,797
Construction and land
Allowance for loan losses
Allowance for loan losses, beginning of period	4,034	1,997
Provision	(801)	(14)
Net recoveries of impaired loans	17	294
Allowance for loan losses, end of period	3,250	2,277
Consumer
Allowance for loan losses
Allowance for loan losses, beginning of period	2,617	2,803
Provision	(17)	(279)
Charge-offs	(9)	(80)
Net recoveries of impaired loans	6	4
Allowance for loan losses, end of period	2,597	2,448
Other
Allowance for loan losses
Allowance for loan losses, beginning of period	826	945
Provision	16	(29)
Allowance for loan losses, end of period	842	916
Unallocated
Allowance for loan losses
Allowance for loan losses, beginning of period	937	675
Provision	(245)	198
Allowance for loan losses, end of period	$ 692	$ 873

Loans - Schedule of Loans Held

Loans - Schedule of Loans Held for Investment and ALL on the basis of Impairment Method (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Allowance for loan losses
Loans held for investment, Individually evaluated for impairment	$ 59,600	$ 60,334
Allowance for loan losses, Individually evaluated for impairment	6,168	6,210
Loans held for investment, Collectively evaluated for impairment	3,024,842	3,085,229
Allowance for loan losses, Collectively evaluated for impairment	30,628	31,731
Commercial
Allowance for loan losses
Loans held for investment, Individually evaluated for impairment	52,839	56,566
Allowance for loan losses, Individually evaluated for impairment	5,546	5,862
Loans held for investment, Collectively evaluated for impairment	1,184,337	1,194,005
Allowance for loan losses, Collectively evaluated for impairment	10,977	10,975
Real estate - mortgage
Allowance for loan losses
Loans held for investment, Individually evaluated for impairment	4,354	1,331
Allowance for loan losses, Individually evaluated for impairment	395	109
Loans held for investment, Collectively evaluated for impairment	1,243,577	1,248,166
Allowance for loan losses, Collectively evaluated for impairment	12,497	12,581
Construction and land
Allowance for loan losses
Loans held for investment, Individually evaluated for impairment	1,044	1,071
Allowance for loan losses, Individually evaluated for impairment	74	91
Loans held for investment, Collectively evaluated for impairment	227,854	263,330
Allowance for loan losses, Collectively evaluated for impairment	3,176	3,943
Consumer
Allowance for loan losses
Loans held for investment, Individually evaluated for impairment	1,339	1,366
Allowance for loan losses, Individually evaluated for impairment	129	148
Loans held for investment, Collectively evaluated for impairment	271,444	280,783
Allowance for loan losses, Collectively evaluated for impairment	2,468	2,469
Other
Allowance for loan losses
Loans held for investment, Individually evaluated for impairment	24
Allowance for loan losses, Individually evaluated for impairment	24
Loans held for investment, Collectively evaluated for impairment	97,630	98,945
Allowance for loan losses, Collectively evaluated for impairment	818	826
Unallocated
Allowance for loan losses
Allowance for loan losses, Collectively evaluated for impairment	$ 692	$ 937

Loans - Schedule of Impaired Lo

Loans - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Impaired receivables with and without related allowance
Unpaid principal balance	$ 60,801	$ 60,905
Recorded investment on impaired loans	59,600	60,334
Recorded investment with a related allowance	56,961	56,637
Recorded investment with no related allowance	2,639	3,697
Related allowance	6,168	6,210
Commercial
Impaired receivables with and without related allowance
Unpaid principal balance	54,040	57,137
Recorded investment on impaired loans	52,839	56,566
Recorded investment with a related allowance	51,002	54,080
Recorded investment with no related allowance	1,837	2,486
Related allowance	5,546	5,862
Real estate - mortgage
Impaired receivables with and without related allowance
Unpaid principal balance	4,354	1,331
Recorded investment on impaired loans	4,354	1,331
Recorded investment with a related allowance	4,702	1,274
Recorded investment with no related allowance	(348)	57
Related allowance	395	109
Construction and land
Impaired receivables with and without related allowance
Unpaid principal balance	1,044	1,071
Recorded investment on impaired loans	1,044	1,071
Recorded investment with a related allowance	1,044	1,071
Related allowance	74	91
Consumer
Impaired receivables with and without related allowance
Unpaid principal balance	1,339	1,366
Recorded investment on impaired loans	1,339	1,366
Recorded investment with a related allowance	189	212
Recorded investment with no related allowance	1,150	1,154
Related allowance	129	148
Other
Impaired receivables with and without related allowance
Unpaid principal balance	24
Recorded investment on impaired loans	24
Recorded investment with a related allowance	24
Related allowance	24
Manufacturing | Commercial
Impaired receivables with and without related allowance
Unpaid principal balance	4,365	3,302
Recorded investment on impaired loans	4,365	3,302
Recorded investment with a related allowance	4,365	3,302
Related allowance	1,161	238
Finance and insurance | Commercial
Impaired receivables with and without related allowance
Unpaid principal balance	472	473
Recorded investment on impaired loans	472	473
Recorded investment with a related allowance	16	17
Recorded investment with no related allowance	456	456
Related allowance	16	17
Health care | Commercial
Impaired receivables with and without related allowance
Unpaid principal balance	602	718
Recorded investment on impaired loans	602	718
Recorded investment with a related allowance	438	459
Recorded investment with no related allowance	164	259
Related allowance	216	207
Real estate services | Commercial
Impaired receivables with and without related allowance
Unpaid principal balance	5,035	7,982
Recorded investment on impaired loans	5,035	7,982
Recorded investment with a related allowance	5,035	7,982
Related allowance	270	544
Construction | Commercial
Impaired receivables with and without related allowance
Unpaid principal balance	1,593	1,689
Recorded investment on impaired loans	1,593	1,457
Recorded investment with a related allowance	1,516	977
Recorded investment with no related allowance	77	480
Related allowance	117	71
Public administration | Commercial
Impaired receivables with and without related allowance
Unpaid principal balance		313
Recorded investment on impaired loans		313
Recorded investment with a related allowance		313
Related allowance		27
Commercial - Other | Commercial
Impaired receivables with and without related allowance
Unpaid principal balance	41,973	42,660
Recorded investment on impaired loans	40,772	42,321
Recorded investment with a related allowance	39,632	41,030
Recorded investment with no related allowance	1,140	1,291
Related allowance	3,766	4,758
Residential and commercial owner-occupied | Real estate - mortgage
Impaired receivables with and without related allowance
Unpaid principal balance	3,605	1,159
Recorded investment on impaired loans	3,605	1,159
Recorded investment with a related allowance	4,531	1,102
Recorded investment with no related allowance	(926)	57
Related allowance	383	94
Residential and commercial investor | Real estate - mortgage
Impaired receivables with and without related allowance
Unpaid principal balance	749	172
Recorded investment on impaired loans	749	172
Recorded investment with a related allowance	171	172
Recorded investment with no related allowance	578
Related allowance	$ 12	$ 15

Loans - Schedule of Impaired 46

Loans - Schedule of Impaired Loans (Average Recorded Investment in Impaired Loans and Interest Income Recognized) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Impaired Loans: Average recorded investment and interest income
Average recorded investment in impaired loans	$ 60,125	$ 25,643
Interest income recognized	950	330
Commercial
Impaired Loans: Average recorded investment and interest income
Average recorded investment in impaired loans	54,861	19,784
Interest income recognized	852	284
Real estate - mortgage
Impaired Loans: Average recorded investment and interest income
Average recorded investment in impaired loans	2,842	3,728
Interest income recognized	77	29
Construction and land
Impaired Loans: Average recorded investment and interest income
Average recorded investment in impaired loans	1,057	1,893
Interest income recognized	9	16
Consumer
Impaired Loans: Average recorded investment and interest income
Average recorded investment in impaired loans	1,215	238
Interest income recognized	10	1
Other
Impaired Loans: Average recorded investment and interest income
Average recorded investment in impaired loans	150
Interest income recognized	2
Manufacturing | Commercial
Impaired Loans: Average recorded investment and interest income
Average recorded investment in impaired loans	3,834	2,046
Interest income recognized	63	29
Finance and insurance | Commercial
Impaired Loans: Average recorded investment and interest income
Average recorded investment in impaired loans	473	59
Interest income recognized	7
Health care | Commercial
Impaired Loans: Average recorded investment and interest income
Average recorded investment in impaired loans	660	246
Interest income recognized	16	6
Real estate services | Commercial
Impaired Loans: Average recorded investment and interest income
Average recorded investment in impaired loans	6,509	6,244
Interest income recognized	20	50
Construction | Commercial
Impaired Loans: Average recorded investment and interest income
Average recorded investment in impaired loans	1,525	1,586
Interest income recognized	26	20
Public administration | Commercial
Impaired Loans: Average recorded investment and interest income
Average recorded investment in impaired loans	313
Interest income recognized	1
Commercial - Other | Commercial
Impaired Loans: Average recorded investment and interest income
Average recorded investment in impaired loans	41,547	9,603
Interest income recognized	719	179
Residential and commercial owner-occupied | Real estate - mortgage
Impaired Loans: Average recorded investment and interest income
Average recorded investment in impaired loans	2,382	1,328
Interest income recognized	68	9
Residential and commercial investor | Real estate - mortgage
Impaired Loans: Average recorded investment and interest income
Average recorded investment in impaired loans	460	2,400
Interest income recognized	$ 9	$ 20

Loans - Schedule of Transaction

Loans - Schedule of Transactions Related to Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Troubled debt restructurings
Balance	$ 56,499
New restructurings	4,623
Net paydowns	(4,463)
Charge-offs	(999)
Balance	55,660
Performing
Troubled debt restructurings
Balance	52,817
New restructurings	4,459
Change in accrual status	(11,750)
Net paydowns	(4,126)
Balance	41,400
Nonperforming
Troubled debt restructurings
Balance	3,682
New restructurings	164
Change in accrual status	11,750
Net paydowns	(337)
Charge-offs	(999)
Balance	$ 14,260

Loans - Schedule of Troubled De

Loans - Schedule of Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)contract	Mar. 31, 2017USD ($)contract
Troubled debt restructurings
Number of contracts | contract	10	5
Pre-modification outstanding recorded investment	$ 4,911	$ 1,686
Post-modification outstanding recorded investment	4,624	1,546
Charge-offs	$ 0	$ 0
Commercial
Troubled debt restructurings
Number of contracts | contract	7	5
Pre-modification outstanding recorded investment	$ 2,224	$ 1,686
Post-modification outstanding recorded investment	$ 1,968	$ 1,546
Manufacturing | Commercial
Troubled debt restructurings
Number of contracts | contract	2
Pre-modification outstanding recorded investment	$ 720
Post-modification outstanding recorded investment	$ 699
Health care | Commercial
Troubled debt restructurings
Number of contracts | contract		2
Pre-modification outstanding recorded investment		$ 329
Post-modification outstanding recorded investment		$ 193
Construction | Commercial
Troubled debt restructurings
Number of contracts | contract	2
Pre-modification outstanding recorded investment	$ 946
Post-modification outstanding recorded investment	$ 714
Commercial - Other | Commercial
Troubled debt restructurings
Number of contracts | contract	3	3
Pre-modification outstanding recorded investment	$ 558	$ 1,357
Post-modification outstanding recorded investment	$ 555	$ 1,353
Residential and commercial owner-occupied
Troubled debt restructurings
Number of contracts | contract	2
Pre-modification outstanding recorded investment	$ 2,109
Post-modification outstanding recorded investment	$ 2,078
Residential and commercial investor
Troubled debt restructurings
Number of contracts | contract	1
Pre-modification outstanding recorded investment	$ 578
Post-modification outstanding recorded investment	$ 578

Loans - Schedule of Troubled 49

Loans - Schedule of Troubled Debt Restructurings that Subsequently Defaulted (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)contract	Mar. 31, 2017item	Dec. 31, 2017USD ($)
Troubled debt restructurings that subsequently defaulted
Outstanding commitments on restructured loans	$ 2,300		$ 4,000
Number of loans restructured within the past 12 months that had a payment default | item		0
Commercial
Troubled debt restructurings that subsequently defaulted
Number of contracts | contract	1
Recorded investment	$ 456
Finance and insurance | Commercial
Troubled debt restructurings that subsequently defaulted
Number of contracts | contract	1
Recorded investment	$ 456

Loans - Schedule of Nonaccrual

Loans - Schedule of Nonaccrual Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Nonaccrual loans
Total nonaccrual loans	$ 18,200	$ 7,517
Commercial
Nonaccrual loans
Total nonaccrual loans	16,404	6,185
Real estate - mortgage
Nonaccrual loans
Total nonaccrual loans	518	57
Consumer
Nonaccrual loans
Total nonaccrual loans	1,254	1,275
Other
Nonaccrual loans
Total nonaccrual loans	24
Manufacturing | Commercial
Nonaccrual loans
Total nonaccrual loans	1,846
Finance and insurance | Commercial
Nonaccrual loans
Total nonaccrual loans	472	473
Health care | Commercial
Nonaccrual loans
Total nonaccrual loans	602	718
Construction | Commercial
Nonaccrual loans
Total nonaccrual loans	240	681
Commercial - Other | Commercial
Nonaccrual loans
Total nonaccrual loans	13,244	4,313
Residential and commercial owner-occupied | Real estate - mortgage
Nonaccrual loans
Total nonaccrual loans	$ 518	$ 57

Loans - Schedule of Aging of Co

Loans - Schedule of Aging of Company's Loan Portfolio (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Nonaccrual loans
Total past due	$ 32,517	$ 16,582
Current	3,054,161	3,131,295
Total loans, excluding fees and costs	3,086,678	3,147,877
Unearned net loan fees	(2,236)	(2,314)
Total loans	3,084,442	3,145,563
Recorded investment in loans 90 days or more past due and accruing		348
30 - 59 Days past due
Nonaccrual loans
Total past due	16,243	9,511
60 - 89 Days past due
Nonaccrual loans
Total past due	12,099	2,520
90+ Days past due
Nonaccrual loans
Total past due	4,175	4,551
Commercial
Nonaccrual loans
Total past due	29,381	11,016
Current	1,207,340	1,239,340
Total loans, excluding fees and costs	1,236,721	1,250,356
Recorded investment in loans 90 days or more past due and accruing		348
Commercial | 30 - 59 Days past due
Nonaccrual loans
Total past due	14,240	6,057
Commercial | 60 - 89 Days past due
Nonaccrual loans
Total past due	12,089	1,515
Commercial | 90+ Days past due
Nonaccrual loans
Total past due	3,052	3,444
Real estate - mortgage
Nonaccrual loans
Total past due	2,003	2,289
Current	1,246,905	1,248,134
Total loans, excluding fees and costs	1,248,908	1,250,423
Real estate - mortgage | 30 - 59 Days past due
Nonaccrual loans
Total past due	2,003	1,301
Real estate - mortgage | 60 - 89 Days past due
Nonaccrual loans
Total past due		988
Construction and land
Nonaccrual loans
Total past due		730
Current	230,719	265,351
Total loans, excluding fees and costs	230,719	266,081
Construction and land | 30 - 59 Days past due
Nonaccrual loans
Total past due		730
Consumer
Nonaccrual loans
Total past due	1,133	2,545
Current	271,569	279,556
Total loans, excluding fees and costs	272,702	282,101
Consumer | 30 - 59 Days past due
Nonaccrual loans
Total past due		1,423
Consumer | 60 - 89 Days past due
Nonaccrual loans
Total past due	10	15
Consumer | 90+ Days past due
Nonaccrual loans
Total past due	1,123	1,107
Other
Nonaccrual loans
Total past due		2
Current	97,628	98,914
Total loans, excluding fees and costs	97,628	98,916
Other | 60 - 89 Days past due
Nonaccrual loans
Total past due		2
Manufacturing | Commercial
Nonaccrual loans
Total past due	2,251
Current	74,328	85,187
Total loans, excluding fees and costs	76,579	85,187
Manufacturing | Commercial | 30 - 59 Days past due
Nonaccrual loans
Total past due	406
Manufacturing | Commercial | 60 - 89 Days past due
Nonaccrual loans
Total past due	479
Manufacturing | Commercial | 90+ Days past due
Nonaccrual loans
Total past due	1,366
Finance and insurance | Commercial
Nonaccrual loans
Total past due	4,418	669
Current	45,761	41,849
Total loans, excluding fees and costs	50,179	42,518
Recorded investment in loans 90 days or more past due and accruing		213
Finance and insurance | Commercial | 30 - 59 Days past due
Nonaccrual loans
Total past due	3,962
Finance and insurance | Commercial | 60 - 89 Days past due
Nonaccrual loans
Total past due		456
Finance and insurance | Commercial | 90+ Days past due
Nonaccrual loans
Total past due	456	213
Health care | Commercial
Nonaccrual loans
Total past due	322	483
Current	166,909	163,302
Total loans, excluding fees and costs	167,231	163,785
Health care | Commercial | 30 - 59 Days past due
Nonaccrual loans
Total past due	199	370
Health care | Commercial | 60 - 89 Days past due
Nonaccrual loans
Total past due	10
Health care | Commercial | 90+ Days past due
Nonaccrual loans
Total past due	113	113
Real estate services | Commercial
Nonaccrual loans
Total past due	60	1,638
Current	127,218	127,209
Total loans, excluding fees and costs	127,278	128,847
Recorded investment in loans 90 days or more past due and accruing		135
Real estate services | Commercial | 30 - 59 Days past due
Nonaccrual loans
Total past due	60	1,503
Real estate services | Commercial | 90+ Days past due
Nonaccrual loans
Total past due		135
Construction | Commercial
Nonaccrual loans
Total past due	851	2,002
Current	64,866	65,988
Total loans, excluding fees and costs	65,717	67,990
Construction | Commercial | 30 - 59 Days past due
Nonaccrual loans
Total past due	251	721
Construction | Commercial | 60 - 89 Days past due
Nonaccrual loans
Total past due	600	600
Construction | Commercial | 90+ Days past due
Nonaccrual loans
Total past due		681
Public administration | Commercial
Nonaccrual loans
Current	255,988
Total loans, excluding fees and costs	255,988	240,077
Wholesale and retail trade | Commercial
Nonaccrual loans
Current		240,077
Total loans, excluding fees and costs		240,077
Commercial - Other | Commercial
Nonaccrual loans
Total past due	21,479	6,224
Current	472,270	515,728
Total loans, excluding fees and costs	493,749	521,952
Commercial - Other | Commercial | 30 - 59 Days past due
Nonaccrual loans
Total past due	9,362	3,463
Commercial - Other | Commercial | 60 - 89 Days past due
Nonaccrual loans
Total past due	11,000	459
Commercial - Other | Commercial | 90+ Days past due
Nonaccrual loans
Total past due	1,117	2,302
Residential and commercial owner-occupied | Real estate - mortgage
Nonaccrual loans
Total past due	1,374	1,115
Current	487,109	483,520
Total loans, excluding fees and costs	488,483	484,635
Residential and commercial owner-occupied | Real estate - mortgage | 30 - 59 Days past due
Nonaccrual loans
Total past due	1,374	426
Residential and commercial owner-occupied | Real estate - mortgage | 60 - 89 Days past due
Nonaccrual loans
Total past due		689
Residential and commercial investor | Real estate - mortgage
Nonaccrual loans
Total past due	629	1,174
Current	759,796	764,614
Total loans, excluding fees and costs	760,425	765,788
Residential and commercial investor | Real estate - mortgage | 30 - 59 Days past due
Nonaccrual loans
Total past due	$ 629	875
Residential and commercial investor | Real estate - mortgage | 60 - 89 Days past due
Nonaccrual loans
Total past due		$ 299

Accumulated Other Comprehensi52

Accumulated Other Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Reclassifications from AOCI
Net (gain) loss on securities, other assets and other real estate owned	$ 120	$ 345
Interest Income	37,777	33,081
Interest and fees on loans	33,773	29,391
Interest on subordinated debentures and notes payable	(1,834)	(1,832)
Realized loss	15,325	10,685
Provision for income taxes	(2,344)	(2,071)
Total reclassifications out of AOCI	12,981	8,614
Reclassification out of AOCI
Reclassifications from AOCI
Total reclassifications out of AOCI	39	212
Reclassification out of AOCI | Cash flow hedges | Unrealized (gain) loss on derivatives
Reclassifications from AOCI
Interest and fees on loans	(16)	249
Interest on subordinated debentures and notes payable	(241)	(358)
Realized loss	(257)	(109)
Provision for income taxes	63	42
Total reclassifications out of AOCI	(194)	(67)
Reclassification out of AOCI | Available for sale securities | Unrealized (gain) loss on securities
Reclassifications from AOCI
Net (gain) loss on securities, other assets and other real estate owned		3
Provision for income taxes		1
Total reclassifications out of AOCI		(2)
Reclassification out of AOCI | Held to maturity securities | Unrealized (gain) loss on securities
Reclassifications from AOCI
Interest Income	308	454
Provision for income taxes	(75)	(173)
Total reclassifications out of AOCI	$ 233	$ 281

Accumulated Other Comprehensi53

Accumulated Other Comprehensive Income - AOCI rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Changes in AOCI
BALANCE - beginning of period	$ 329,284
Other comprehensive income (loss), net of tax	(1,659)	$ 875
BALANCE - end of period	338,557
Accumulated Comprehensive Income
Changes in AOCI
BALANCE - beginning of period	(141)
Other comprehensive income (loss) items	(1,620)
Reclassification to earnings	(39)
Reclassification to retained earnings	(30)
Other comprehensive income (loss), net of tax	(1,689)
BALANCE - end of period	(1,830)
Unrealized (gain) loss on securities | Available for sale securities
Changes in AOCI
BALANCE - beginning of period	1,700
Other comprehensive income (loss) items	(1,155)
Reclassification to retained earnings	369
Other comprehensive income (loss), net of tax	(786)
BALANCE - end of period	914
Unrealized (gain) loss on securities | Held to maturity securities
Changes in AOCI
BALANCE - beginning of period	2,125
Reclassification to earnings	(233)
Reclassification to retained earnings	448
Other comprehensive income (loss), net of tax	215
BALANCE - end of period	2,340
Cash flow hedges | Unrealized (gain) loss on derivatives
Changes in AOCI
BALANCE - beginning of period	(3,966)
Other comprehensive income (loss) items	(465)
Reclassification to earnings	194
Reclassification to retained earnings	(847)
Other comprehensive income (loss), net of tax	(1,118)
BALANCE - end of period	$ (5,084)

Derivatives - Narrative (Detail

Derivatives - Narrative (Details) $ in Millions	1 Months Ended
	Oct. 31, 2016USD ($)contract	Mar. 31, 2018USD ($)derivative
Cash flow, Fair value, and non-designated hedges
Fair value of derivatives in a net liability position		$ 3.8
Collateral already posted		6.4
Interest Income
Cash flow, Fair value, and non-designated hedges
Estimated gains (losses) to be reclassified as earnings in next 12 months		0.2
Interest Expense
Cash flow, Fair value, and non-designated hedges
Estimated gains (losses) to be reclassified as earnings in next 12 months		1.5
Derivatives designated as hedging instruments | Interest rate swap | Cash flow hedges | Variable rate loan assets
Cash flow, Fair value, and non-designated hedges
Notional amount of derivative instrument	$ 100
Number of derivative contracts entered | contract	2
Weighted average term	5 years
Fixed rate	1.20%
Derivatives designated as hedging instruments | Interest rate swap | Fair value hedges
Cash flow, Fair value, and non-designated hedges
Notional amount of derivative instrument		$ 58.5
Number of interest-rate swaps held | derivative		11
Derivatives not designated as hedging instruments
Cash flow, Fair value, and non-designated hedges
Notional amount of derivative instrument		$ 313.7
Number of interest-rate swaps held | derivative		100
Derivatives not designated as hedging instruments | Foreign exchange forward contracts
Cash flow, Fair value, and non-designated hedges
Notional amount of derivative instrument		$ 4.7

Derivatives - Schedule of Deriv

Derivatives - Schedule of Derivatives Instruments in Statements of Financial Position (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Other assets | Cash flow hedges
Derivatives at fair value
Asset derivatives, designated as hedging at Fair value	$ 453	$ 113
Other assets | Fair value hedges
Derivatives at fair value
Asset derivatives, designated as hedging at Fair value	1,649	628
Accrued interest and other liabilities | Cash flow hedges
Derivatives at fair value
Liability derivatives, designated as hedging at Fair value	7,318	6,732
Accrued interest and other liabilities | Fair value hedges
Derivatives at fair value
Liability derivatives, designated as hedging at Fair value	186	633
Interest rate swap | Other assets
Derivatives at fair value
Asset derivatives, designated as hedging at Fair value	3,255	2,081
Interest rate swap | Accrued interest and other liabilities
Derivatives at fair value
Liability derivatives, designated as hedging at Fair value	3,276	2,176
Foreign exchange forward contracts | Other assets
Derivatives at fair value
Asset derivatives, not designated as hedging at Fair value	40	28
Foreign exchange forward contracts | Accrued interest and other liabilities
Derivatives at fair value
Liability derivatives, not designated as hedging at Fair value	$ 33	$ 44

Derivatives - Schedule of Fair

Derivatives - Schedule of Fair Value of Derivative Financial Instruments and Classification on Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Derivative assets, net
Gross amounts of recognized assets	$ 5,397	$ 2,850
Net amounts included in other assets in the Condensed Consolidated Balance Sheets	5,397	2,850
Gross amounts not offset - Financial instruments	(4,484)	(1,963)
Gross amounts not offset - Net Amount	913	887
Securities sold under agreements to repurchase
Gross amounts of recognized liabilities	(42,268)	(52,959)
Net amounts included in accrued interest and other liabilities in the Consolidated Balance Sheets	(42,268)	(52,959)
Gross amounts not offset - Collateral	42,268	52,959
Total offsetting derivative liabilities and securities sold under agreements to repurchase
Gross amounts of recognized liabilities	(53,081)	(62,544)
Net amounts included in accrued interest and other liabilities in the Consolidated Balance Sheets	(53,081)	(62,544)
Gross amounts not offset - Financial instruments	4,484	1,963
Gross amounts not offset - Collateral	48,701	60,551
Gross amounts not offset - Net Amount	104	(30)
Derivatives designated as hedging instruments
Derivative assets, net
Gross amounts of recognized assets	2,102	741
Net amounts included in other assets in the Condensed Consolidated Balance Sheets	2,102	741
Gross amounts not offset - Financial instruments	(1,709)	(741)
Gross amounts not offset - Net Amount	393
Derivatives designated as hedges or not designated as hedges
Gross amounts of recognized liabilities	(7,504)	(7,365)
Net amounts included in accrued interest and other liabilities' in the condensed consolidated balance sheets	(7,504)	(7,365)
Gross amounts not offset - Financial instruments	1,709	741
Gross amounts not offset - Collateral	5,795	6,624
Derivatives not designated as hedging instruments
Derivative assets, net
Gross amounts of recognized assets	3,295	2,109
Net amounts included in other assets in the Condensed Consolidated Balance Sheets	3,295	2,109
Gross amounts not offset - Financial instruments	(2,775)	(1,222)
Gross amounts not offset - Net Amount	520	887
Derivatives designated as hedges or not designated as hedges
Gross amounts of recognized liabilities	(3,309)	(2,220)
Net amounts included in accrued interest and other liabilities' in the condensed consolidated balance sheets	(3,309)	(2,220)
Gross amounts not offset - Financial instruments	2,775	1,222
Gross amounts not offset - Collateral	638	968
Gross amounts not offset - Net Amount	$ 104	$ (30)

Derivatives - Schedule of Notio

Derivatives - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
CoBiz Statutory Trust I
Derivatives, statutory trusts
Notional amount of derivative instrument	$ 20,000
Fixed rate	4.99%
Termination date	Mar. 17, 2022
CoBiz Capital Trust II
Derivatives, statutory trusts
Notional amount of derivative instrument	$ 30,000
Fixed rate	5.99%
Termination date	Apr. 23, 2020
CoBiz Capital Trust III
Derivatives, statutory trusts
Notional amount of derivative instrument	$ 20,000
Fixed rate	5.02%
Termination date	Mar. 30, 2024

Borrowed Funds - Schedule of Se

Borrowed Funds - Schedule of Securities Sold Under Agreements to Repurchase (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2018USD ($)Counterparty	Dec. 31, 2017USD ($)
Securities sold under agreements to repurchase
Securities sold under agreements to repurchase	$ 42,268,000	$ 52,959,000
Other short-term borrowings	97,818,000	77,640,000
Fair value of securities sold under agreements to repurchase	43,113,000	54,018,000
FHLB advances, average outstanding balance during the period	$ 85,600,000	$ 107,300,000
Variable rate basis	1.75%	1.47%
Securities Sold under Agreements to Repurchase
Securities sold under agreements to repurchase
Short-term debt, average outstanding amount	$ 48,900,000	$ 59,600,000
Short-term debt, maximum amount outstanding at any month end	$ 48,500,000	$ 69,900,000
Short-term debt, weighted average interest rate	0.06%	0.06%
Other Short-Term Borrowings
Securities sold under agreements to repurchase
Fair value of securities sold under agreements to repurchase	$ 609,100,000	$ 605,400,000
Pledged loans	887,400,000	877,900,000
Revolving Line of Credit (LOC)
Securities sold under agreements to repurchase
Maximum borrowing capacity	$ 20,000,000
Commitment fee percentage on the unused portion of the LOC	0.35%
Amount outstanding	$ 0	0
Federal Fund Purchase Lines
Securities sold under agreements to repurchase
Short-term debt, average outstanding amount	2,000,000	1,500,000
Maximum borrowing capacity	180,000,000
Amount outstanding	$ 2,800,000	$ 4,600,000
Number of banks providing line of credit | Counterparty	8
Federal Reserve Bank of Kansas Through The Discount Window Lending Program
Securities sold under agreements to repurchase
Pledged loans	$ 829,000,000
1-month LIBOR | Revolving Line of Credit (LOC)
Securities sold under agreements to repurchase
Basis spread on variable rate	2.25%

Segments - Summary of Results O

Segments - Summary of Results Of Operations by Operating Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segments
Total interest income	$ 37,777	$ 33,081
Total interest expense	3,168	3,003
Provision for loan losses	(325)	607
Noninterest income	8,961	8,328
Noninterest expense	28,570	27,114
Provision (benefit) for income taxes	2,344	2,071
Net income (loss)	12,981	8,614
Commercial Banking
Segments
Total interest income	37,688	32,994
Total interest expense	1,341	1,191
Provision for loan losses	(316)	692
Noninterest income	3,746	3,404
Noninterest expense	6,045	9,548
Management fees and allocations, net of tax	13,563	7,704
Provision (benefit) for income taxes	7,313	7,583
Net income (loss)	13,488	9,680
Fee-Based Lines
Segments
Total interest expense		13
Noninterest income	5,114	4,653
Noninterest expense	4,346	4,504
Management fees and allocations, net of tax	475	275
Provision (benefit) for income taxes	214	48
Net income (loss)	79	(187)
Corporate Support and Other
Segments
Total interest income	89	87
Total interest expense	1,827	1,799
Provision for loan losses	(9)	(85)
Noninterest income	101	271
Noninterest expense	18,179	13,062
Management fees and allocations, net of tax	(14,038)	(7,979)
Provision (benefit) for income taxes	(5,183)	(5,560)
Net income (loss)	$ (586)	$ (879)

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets and liabilities measured at fair value
Investment securities available for sale	$ 184,389	$ 166,753
Total derivative assets	5,397	2,850
Trust preferred securities
Assets and liabilities measured at fair value
Investment securities available for sale	21,770	21,983
Corporate debt securities
Assets and liabilities measured at fair value
Investment securities available for sale	159,351	141,495
Derivatives designated as hedging instruments
Assets and liabilities measured at fair value
Total derivative assets	2,102	741
Total derivative liabilities	7,504	7,365
Derivatives not designated as hedging instruments
Assets and liabilities measured at fair value
Total derivative assets	3,295	2,109
Total derivative liabilities	3,309	2,220
Recurring
Assets and liabilities measured at fair value
Investment securities available for sale	184,389	166,753
Total derivative assets	5,397	2,850
Total derivative liabilities	10,813	9,585
Recurring | Quoted prices in active markets for identical assets (Level 1)
Assets and liabilities measured at fair value
Investment securities available for sale	353	363
Recurring | Significant other observable inputs (Level 2)
Assets and liabilities measured at fair value
Investment securities available for sale	174,908	157,291
Total derivative assets	5,397	2,850
Total derivative liabilities	10,813	9,585
Recurring | Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value
Investment securities available for sale	9,128	9,099
Recurring | Trust preferred securities
Assets and liabilities measured at fair value
Investment securities available for sale	21,770	21,983
Recurring | Trust preferred securities | Quoted prices in active markets for identical assets (Level 1)
Assets and liabilities measured at fair value
Investment securities available for sale	353	363
Recurring | Trust preferred securities | Significant other observable inputs (Level 2)
Assets and liabilities measured at fair value
Investment securities available for sale	12,289	12,521
Recurring | Trust preferred securities | Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value
Investment securities available for sale	9,128	9,099
Recurring | Corporate debt securities
Assets and liabilities measured at fair value
Investment securities available for sale	159,351	141,495
Recurring | Corporate debt securities | Significant other observable inputs (Level 2)
Assets and liabilities measured at fair value
Investment securities available for sale	159,351	141,495
Recurring | Municipal securities
Assets and liabilities measured at fair value
Investment securities available for sale	3,268	3,275
Recurring | Municipal securities | Significant other observable inputs (Level 2)
Assets and liabilities measured at fair value
Investment securities available for sale	3,268	3,275
Recurring | Foreign exchange forward contracts
Assets and liabilities measured at fair value
Total derivative assets	40	28
Total derivative liabilities	33	44
Recurring | Foreign exchange forward contracts | Significant other observable inputs (Level 2)
Assets and liabilities measured at fair value
Total derivative assets	40	28
Total derivative liabilities	33	44
Recurring | Derivatives designated as hedging instruments | Cash flow hedges
Assets and liabilities measured at fair value
Total derivative assets	453	113
Total derivative liabilities	7,318	6,732
Recurring | Derivatives designated as hedging instruments | Fair value hedges
Assets and liabilities measured at fair value
Total derivative assets	1,649	628
Total derivative liabilities	186	633
Recurring | Derivatives designated as hedging instruments | Significant other observable inputs (Level 2) | Cash flow hedges
Assets and liabilities measured at fair value
Total derivative assets	453	113
Total derivative liabilities	7,318	6,732
Recurring | Derivatives designated as hedging instruments | Significant other observable inputs (Level 2) | Fair value hedges
Assets and liabilities measured at fair value
Total derivative assets	1,649	628
Total derivative liabilities	186	633
Recurring | Derivatives not designated as hedging instruments
Assets and liabilities measured at fair value
Total derivative assets	3,255	2,081
Total derivative liabilities	3,276	2,176
Recurring | Derivatives not designated as hedging instruments | Significant other observable inputs (Level 2)
Assets and liabilities measured at fair value
Total derivative assets	3,255	2,081
Total derivative liabilities	$ 3,276	$ 2,176

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of the Beginning and Ending Balance of Financial Assets Measured At Fair Value On Recurring Basis Using Level 3 Inputs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Reconciliation of Level 3 inputs
Beginning balance	$ 9,099	$ 9,448
Net accretion	30	29
Unrealized gain (loss) included in comprehensive income	(1)	540
Ending balance	$ 9,128	$ 10,017

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value on Nonrecurring Basis (OREO and Impaired Loans) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Assets and liabilities measured at fair value
OREO recorded at fair value	$ 5,245		$ 5,351
Provision for loan losses	(325)	$ 607
OREO
Assets and liabilities measured at fair value
OREO recorded at fair value	5,245		5,351
Impaired Loans
Assets and liabilities measured at fair value
Impaired loans, net of specific reserve	15,649		3,792
Nonrecurring | OREO
Assets and liabilities measured at fair value
OREO recorded at fair value	5,245		5,351
Nonrecurring | OREO | Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value
OREO recorded at fair value	5,245		5,351
Nonrecurring | Impaired Loans
Assets and liabilities measured at fair value
Impaired loans, net of specific reserve	15,649		3,792
Provision for loan losses	(1,286)	$ 404
Nonrecurring | Impaired Loans | Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value
Impaired loans, net of specific reserve	$ 15,649		$ 3,792

Fair Value Measurements - Sch63

Fair Value Measurements - Schedule of Reconciliation of Fair Value Measurement of Other Real Estate Owned (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value Measurements
OREO recorded at fair value	$ 5,245	$ 5,351
Estimated selling costs	(266)	(272)
OREO	$ 4,979	$ 5,079

Fair Value Measurements - Sch64

Fair Value Measurements - Schedule of Valuation Process Used to Determine Fair Value Measurement within Level 3 (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Fair value valuation processes
Investment securities available for sale	$ 184,389	$ 166,753
OREO recorded at fair value	5,245	5,351
Impaired Loans
Fair value valuation processes
Impaired loans	15,649	3,792
OREO
Fair value valuation processes
OREO recorded at fair value	5,245	5,351
Market approach | Trust preferred securities
Fair value valuation processes
Investment securities available for sale	$ 9,128	$ 9,099
Valuation technique	Market approach	Market approach
Unobservable input	Discount to carrying value using broker quotes or observable prices on similar securities	Discount to carrying value using broker quotes or observable prices on similar securities
Market approach | Weighted average | Trust preferred securities
Fair value valuation processes
Discount rate	7.00%	7.00%
Market approach | Minimum | Trust preferred securities
Fair value valuation processes
Discount rate	5.00%	5.00%
Market approach | Maximum | Trust preferred securities
Fair value valuation processes
Discount rate	15.00%	15.00%
Commercial | Sales comparison | Impaired Loans
Fair value valuation processes
Impaired loans	$ 13,403	$ 2,581
Valuation technique	Sales comparison(1)	Sales comparison(1)
Unobservable input	Management discount for asset type	Management discount for asset type
Commercial | Sales comparison | Weighted average | Impaired Loans
Fair value valuation processes
Discount rate	82.00%	59.00%
Commercial | Sales comparison | Minimum | Impaired Loans
Fair value valuation processes
Discount rate	0.00%	0.00%
Commercial | Sales comparison | Maximum | Impaired Loans
Fair value valuation processes
Discount rate	90.00%	98.00%
Commercial | Property appraisals | OREO
Fair value valuation processes
OREO recorded at fair value	$ 190	$ 190
Valuation technique	Property appraisals(2)	Property appraisals(2)
Unobservable input	Management discount for property type	Management discount for property type
Commercial | Property appraisals | Weighted average | OREO
Fair value valuation processes
Discount rate	0.00%	0.00%
Real estate - mortgage | Sales comparison | Impaired Loans
Fair value valuation processes
Impaired loans	$ 1,096	$ 57
Valuation technique	Sales comparison(2)	Sales comparison(2)
Unobservable input	Sales comparison adjustments	Sales comparison adjustments
Real estate - mortgage | Sales comparison | Weighted average | Impaired Loans
Fair value valuation processes
Sales comparison adjustments	(2.00%)	(4.00%)
Real estate - mortgage | Sales comparison | Minimum | Impaired Loans
Fair value valuation processes
Sales comparison adjustments	(4.00%)
Real estate - mortgage | Sales comparison | Maximum | Impaired Loans
Fair value valuation processes
Sales comparison adjustments	0.00%
Construction and land | Property appraisals | OREO
Fair value valuation processes
OREO recorded at fair value	$ 5,055	$ 5,161
Valuation technique	Property appraisals(2)	Property appraisals(2)
Unobservable input	Management discount for property type	Management discount for property type
Construction and land | Property appraisals | Weighted average | OREO
Fair value valuation processes
Discount rate	50.00%	17.00%
Consumer | Sales comparison | Impaired Loans
Fair value valuation processes
Impaired loans	$ 1,150	$ 1,154
Valuation technique	Sales comparison(2)	Sales comparison(2)
Unobservable input	Sales comparison adjustments	Sales comparison adjustments
Consumer | Sales comparison | Weighted average | Impaired Loans
Fair value valuation processes
Sales comparison adjustments	(6.00%)	(11.00%)
Consumer | Sales comparison | Minimum | Impaired Loans
Fair value valuation processes
Sales comparison adjustments	(20.00%)	(7.00%)
Consumer | Sales comparison | Maximum | Impaired Loans
Fair value valuation processes
Sales comparison adjustments	(4.00%)	(20.00%)

Fair Value Measurements - Sch65

Fair Value Measurements - Schedule of Estimated Fair Value of Other Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Fair value of financial instruments
Cash and cash equivalents	$ 67,680	$ 80,180	$ 87,531	$ 96,050
Investment securities available for sale	184,389	166,753
Investment securities held to maturity	386,908	362,544
Other investments	10,954	10,119
Loans - net	3,047,646	3,107,622
Accrued interest receivable	13,506	14,150
Derivatives assets	5,397	2,850
Deposits	3,179,766	3,225,220
Securities sold under agreements to repurchase	42,268	52,959
Other short-term borrowings	97,818	77,640
Subordinated notes payable	59,217	59,195
Junior subordinated debentures	72,166	72,166
Carrying Value
Fair value of financial instruments
Investment securities available for sale	184,389	166,753
Investment securities held to maturity	386,908	362,544
Accrued interest receivable	13,506	14,150
Accrued interest payable	1,696	1,077
Carrying Value | Significant other observable inputs (Level 2)
Fair value of financial instruments
Cash and cash equivalents	67,680	80,180
Other investments	2,174	2,174
Derivatives assets	5,397	2,850
Deposits	3,179,766	3,225,220
Securities sold under agreements to repurchase	42,268	52,959
Other short-term borrowings	97,818	77,640
Junior subordinated debentures	72,166	72,166
Derivatives liabilities	10,813	9,585
Carrying Value | Significant unobservable inputs (Level 3)
Fair value of financial instruments
Loans - net	3,047,646	3,107,622
Subordinated notes payable	59,217	59,195
Total Fair Value
Fair value of financial instruments
Investment securities available for sale	184,389	166,753
Investment securities held to maturity	381,947	360,071
Accrued interest receivable	13,506	14,150
Accrued interest payable	1,696	1,077
Total Fair Value | Significant other observable inputs (Level 2)
Fair value of financial instruments
Cash and cash equivalents	67,680	80,180
Other investments	2,174	2,174
Derivatives assets	5,397	2,850
Deposits	3,178,891	3,224,417
Securities sold under agreements to repurchase	35,341	49,436
Other short-term borrowings	97,818	77,640
Junior subordinated debentures	72,166	72,166
Derivatives liabilities	10,813	9,585
Total Fair Value | Significant unobservable inputs (Level 3)
Fair value of financial instruments
Loans - net	3,000,398	3,080,935
Subordinated notes payable	$ 56,832	$ 58,451

Regulatory Matters - Schedule o

Regulatory Matters - Schedule of Regulatory Capital Amounts and Ratios of Company and Bank (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Regulatory matters
Minimum Capital Conservation Buffer (as percent)	1.875%	1.25%
Annual increase in minimum Capital Conservation Buffer (as percent)	0.625%
Increased Capital Conservation Buffer (as percent)	2.50%
Common Tier 1, Risk-based, Capital ratios (as a percent)	10.50%
Common Tier 1, Risk-based, Well-capitalized requirement (as a percent)	6.50%
Common Tier 1, Risk-based, Minimum capital requirement (as a percent)	7.00%
Tier I, Risk-based, Capital ratios (as a percent)	12.40%
Tier I, Risk-based, Well-capitalized requirement (as a percent)	8.00%
Tier I, Risk-based, Minimum capital requirement (as a percent)	8.50%
Total capital, Risk-based, Capital ratios (as a percent)	15.10%
Total capital, Risk-based, Well-capitalized requirement (as a percent)	10.00%
Total capital, Risk-based, Minimum capital requirement (as a percent)	10.50%
Tier I, Leverage, Capital ratios (as a percent)	10.60%
Tier I, Leverage, Well-capitalized requirement (as a percent)	5.00%
Tier I, Leverage, Minimum capital requirement (as a percent)	4.00%
Bank
Regulatory matters
Common Tier 1, Risk-based, Capital ratios (as a percent)	10.70%
Tier I, Risk-based, Capital ratios (as a percent)	10.70%
Total capital, Risk-based, Capital ratios (as a percent)	13.70%
Tier I, Leverage, Capital ratios (as a percent)	9.10%

Revenue and Expense - (Details)

Revenue and Expense - (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue and Expense
Receivables from customers	$ 3,800	$ 3,700
Revenue from contracts with customers	7,246
Other noninterest income
Loan fees	743
Other customer service fees	239
Bank-owned life insurance	398
Other Investments	175
Derivative valuation	156
Other	4
Other noninterest income	1,715
Total noninterest income	8,961	8,328
Other noninterest expense
Marketing and business development	701	706
Service contracts	1,345	1,293
Professional fees	1,532	904
Office supplies and delivery	251	303
Other	852	1,039
Total	4,681	4,245
Depository service charges
Revenue and Expense
Revenue from contracts with customers	1,655
Investment advisory income
Revenue and Expense
Revenue from contracts with customers	1,655
Property and Casualty
Revenue and Expense
Revenue from contracts with customers	1,232
Employee Benefits
Revenue and Expense
Revenue from contracts with customers	2,075
Bonus Income and Merchant and Bankcard Fees
Revenue and Expense
Revenue from contracts with customers	$ 629
Calculated under Revenue Guidance in Effect before Topic 606
Revenue and Expense
Revenue from contracts with customers		6,864
Other noninterest income
Loan fees		516
Other customer service fees		233
Bank-owned life insurance		349
Other Investments		375
Derivative valuation		(57)
Other		48
Other noninterest income		1,464
Total noninterest income		8,328
Calculated under Revenue Guidance in Effect before Topic 606 | Depository service charges
Revenue and Expense
Revenue from contracts with customers		1,745
Calculated under Revenue Guidance in Effect before Topic 606 | Investment advisory income
Revenue and Expense
Revenue from contracts with customers		1,531
Calculated under Revenue Guidance in Effect before Topic 606 | Property and Casualty
Revenue and Expense
Revenue from contracts with customers		1,129
Calculated under Revenue Guidance in Effect before Topic 606 | Employee Benefits
Revenue and Expense
Revenue from contracts with customers		1,639
Calculated under Revenue Guidance in Effect before Topic 606 | Bonus Income and Merchant and Bankcard Fees
Revenue and Expense
Revenue from contracts with customers		$ 820