Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 23, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TriState Capital Holdings, Inc. | |
Entity Central Index Key | 1,380,846 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 28,027,695 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash | $ 950 | $ 411 |
Interest-earning deposits with other institutions | 94,115 | 99,551 |
Federal funds sold | 5,359 | 5,748 |
Cash and cash equivalents | 100,424 | 105,710 |
Investment securities available-for-sale, at fair value (cost: $174,727 and $167,232, respectively) | 173,585 | 166,572 |
Investment securities held-to-maturity, at cost (fair value: $47,261 and $40,113, respectively) | 46,427 | 39,591 |
Total investment securities | 220,012 | 206,163 |
Loans held-for-investment | 2,661,191 | 2,400,052 |
Allowance for loan losses | (19,350) | (20,273) |
Loans held-for-investment, net | 2,641,841 | 2,379,779 |
Accrued interest receivable | 6,693 | 6,279 |
Investment management fees receivable | 6,294 | 6,818 |
Federal Home Loan Bank stock | 8,002 | 5,730 |
Goodwill and other intangibles, net | 51,205 | 52,374 |
Office properties and equipment, net | 4,014 | 4,128 |
Bank owned life insurance | 59,575 | 53,323 |
Deferred tax asset, net | 11,495 | 11,874 |
Prepaid expenses and other assets | 20,692 | 14,679 |
Total assets | 3,130,247 | 2,846,857 |
Liabilities: | ||
Deposits | 2,600,508 | 2,336,953 |
Borrowings | 175,000 | 165,000 |
Accrued interest payable on deposits and borrowings | 1,221 | 1,735 |
Accrued earnout liability related to Chartwell acquisition | 0 | 17,236 |
Other accrued expenses and other liabilities | 32,978 | 20,543 |
Total liabilities | 2,809,707 | 2,541,467 |
Shareholders’ Equity: | ||
Preferred stock, no par value; Shares authorized - 150,000; Shares issued - none | 0 | 0 |
Common stock, no par value; Shares authorized - 45,000,000; Shares issued - 29,027,695 and 28,739,779, respectively; Shares outstanding - 28,027,695 and 28,060,888, respectively | 281,377 | 280,895 |
Additional paid-in capital | 10,463 | 9,253 |
Retained earnings | 39,517 | 22,615 |
Accumulated other comprehensive income (loss), net | (913) | (627) |
Treasury stock (1,000,000 and 678,891 shares, respectively) | (9,904) | (6,746) |
Total shareholders’ equity | 320,540 | 305,390 |
Total liabilities and shareholders’ equity | $ 3,130,247 | $ 2,846,857 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Shares Authorized, Preferred Stock (shares) | 150,000 | 150,000 |
Preferred Stock, Shares Issued (shares) | 0 | 0 |
Shares Authorized, Common Stock (shares) | 45,000,000 | 45,000,000 |
Shares Issued, Common Stock (shares) | 29,027,695 | 28,739,779 |
Shares Outstanding, Common Stock (shares) | 28,027,695 | 28,060,888 |
Treasury Stock (shares) | 1,000,000 | 678,891 |
Investments AFS (cost) | $ 174,727 | $ 167,232 |
Investments HTM (fair value) | $ 47,261 | $ 40,113 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest income: | ||||
Loans | $ 19,863 | $ 18,769 | $ 58,504 | $ 54,277 |
Investments | 991 | 797 | 2,579 | 2,263 |
Interest-earning deposits | 86 | 115 | 278 | 440 |
Total interest income | 20,940 | 19,681 | 61,361 | 56,980 |
Interest expense: | ||||
Deposits | 3,274 | 2,754 | 9,342 | 7,871 |
Borrowings | 710 | 681 | 1,989 | 963 |
Total interest expense | 3,984 | 3,435 | 11,331 | 8,834 |
Net interest income | 16,956 | 16,246 | 50,030 | 48,146 |
Provision (credit) for loan losses | (1,341) | 651 | (231) | 10,368 |
Net interest income after provision (credit) for loan losses | 18,297 | 15,595 | 50,261 | 37,778 |
Non-interest income: | ||||
Investment management fees | 7,020 | 7,418 | 22,189 | 17,381 |
Service charges | 148 | 163 | 487 | 447 |
Net gain on the sale of investment securities available-for-sale | 0 | 0 | 17 | 1,428 |
Swap fees | 297 | 563 | 1,311 | 972 |
Commitment and other fees | 487 | 551 | 1,487 | 1,531 |
Other income | 112 | 595 | 1,262 | 1,132 |
Total non-interest income | 8,064 | 9,290 | 26,753 | 22,891 |
Non-interest expense: | ||||
Compensation and employee benefits | 11,513 | 11,225 | 34,531 | 29,454 |
Premises and occupancy costs | 1,173 | 1,000 | 3,439 | 2,915 |
Professional fees | 829 | 846 | 2,590 | 2,641 |
FDIC insurance expense | 461 | 565 | 1,474 | 1,427 |
General insurance expense | 220 | 301 | 827 | 835 |
State capital shares tax | 310 | 111 | 892 | 738 |
Travel and entertainment expense | 711 | 597 | 1,873 | 1,723 |
Data processing expense | 275 | 230 | 805 | 686 |
Intangible amortization expense | 390 | 389 | 1,169 | 909 |
Other operating expenses | 1,419 | 1,409 | 4,385 | 3,621 |
Total non-interest expense | 17,301 | 16,673 | 51,985 | 44,949 |
Income before tax | 9,060 | 8,212 | 25,029 | 15,720 |
Income tax expense | 2,942 | 2,506 | 8,127 | 4,884 |
Net income | $ 6,118 | $ 5,706 | $ 16,902 | $ 10,836 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.22 | $ 0.20 | $ 0.61 | $ 0.38 |
Diluted (in dollars per share) | $ 0.22 | $ 0.20 | $ 0.60 | $ 0.37 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 6,118 | $ 5,706 | $ 16,902 | $ 10,836 |
Other comprehensive income (loss): | ||||
Change in unrealized holding (losses) gains net of tax (benefit) expense of $(389), $213, $(145) and $1,404 respectively | (698) | 446 | (275) | 2,582 |
Reclassification adjustment for gains included in net income, net of tax expense of $0, $0, $6 and $511 respectively | 0 | 0 | (11) | (917) |
Other comprehensive income (loss) | (698) | 446 | (286) | 1,665 |
Total comprehensive income | $ 5,420 | $ 6,152 | $ 16,616 | $ 12,501 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Increase (decrease) in unrealized holding gains tax expense (benefit) | $ (389) | $ 213 | $ (145) | $ 1,404 |
Reclassification adjustment for (gains) included in net income tax | $ 0 | $ 0 | $ 6 | $ 511 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), net | Treasury Stock |
Beginning Balance at Dec. 31, 2013 | $ 293,945 | $ 280,531 | $ 8,471 | $ 6,687 | $ (1,744) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 10,836 | 10,836 | ||||
Other comprehensive income (loss) | 1,665 | 1,665 | ||||
Exercise of stock options | 250 | 364 | (114) | |||
Stock-based compensation | 663 | 663 | ||||
Ending Balance at Sep. 30, 2014 | 307,359 | 280,895 | 9,020 | 17,523 | (79) | 0 |
Beginning Balance at Dec. 31, 2013 | 293,945 | 280,531 | 8,471 | 6,687 | (1,744) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Purchase of treasury stock | (6,700) | |||||
Ending Balance at Dec. 31, 2014 | 305,390 | 280,895 | 9,253 | 22,615 | (627) | (6,746) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 16,902 | 16,902 | ||||
Other comprehensive income (loss) | (286) | (286) | ||||
Exercise of stock options | 330 | 482 | (152) | |||
Purchase of treasury stock | (3,158) | (3,158) | ||||
Stock-based compensation | 1,362 | 1,362 | ||||
Ending Balance at Sep. 30, 2015 | $ 320,540 | $ 281,377 | $ 10,463 | $ 39,517 | $ (913) | $ (9,904) |
Unaudited Condensed Consolidat8
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities: | ||
Net income | $ 16,902 | $ 10,836 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and intangible amortization expense | 2,179 | 1,805 |
Amortization of deferred financing costs | 152 | 67 |
Provision (credit) for loan losses | (231) | 10,368 |
Stock-based compensation expense | 1,362 | 663 |
Net gain on the sale of investment securities available-for-sale | (17) | (1,428) |
Net amortization of premiums and discounts | 566 | 1,095 |
Decrease (increase) in investment management fees receivable | 524 | (1,083) |
Decrease (increase) in accrued interest receivable | (414) | 67 |
Increase (decrease) in accrued interest payable | (514) | 98 |
Bank owned life insurance income | (1,252) | (1,041) |
Decrease in income taxes payable | 0 | (160) |
Decrease (increase) in prepaid income taxes | 1,031 | (2,991) |
Payment of contingent consideration impacting operations | (1,771) | 0 |
Other, net | 3,270 | 4,035 |
Net cash provided by operating activities | 21,787 | 22,331 |
Cash Flows from Investing Activities: | ||
Purchase of investment securities available-for-sale | (32,663) | (52,736) |
Purchase of investment securities held-to-maturity | (13,464) | (21,954) |
Proceeds from the sale of investment securities available-for-sale | 9,734 | 69,555 |
Principal repayments and maturities of investment securities available-for-sale | 17,517 | 10,360 |
Principal repayments and maturities of investment securities held-to-maturity | 6,540 | 0 |
Purchase of bank owned life insurance | (5,000) | (10,000) |
Net purchase of Federal Home Loan Bank stock | (2,272) | (5,518) |
Net increase in loans | (266,522) | (239,650) |
Purchase of loans held-for-investment | 0 | (219,547) |
Proceeds from loan sales | 4,691 | 16,477 |
Additions to office properties and equipment | (896) | (713) |
Acquisition, net of acquired cash | 0 | (42,912) |
Net cash used in investing activities | (282,335) | (496,638) |
Cash Flows from Financing Activities: | ||
Net increase in deposit accounts | 263,555 | 282,619 |
Net increase in Federal Home Loan Bank advances | 10,000 | 110,000 |
Net proceeds from issuance of subordinated notes payable | 0 | 34,013 |
Net proceeds from exercise of stock options | 330 | 250 |
Payment of contingent consideration | (15,465) | 0 |
Purchase of treasury stock | (3,158) | 0 |
Net cash provided by financing activities | 255,262 | 426,882 |
Net change in cash and cash equivalents during the period | (5,286) | (47,425) |
Cash and cash equivalents at beginning of the period | 105,710 | 146,558 |
Cash and cash equivalents at end of the period | 100,424 | 99,133 |
Cash paid during the year for: | ||
Interest | 11,694 | 8,737 |
Income taxes | 6,713 | 8,218 |
Other non-cash activity: | ||
Loan foreclosures and repossessions | 396 | 0 |
Unsettled purchase of investment securities available-for-sale | 2,499 | 0 |
Contingent consideration | 0 | 15,465 |
Transfer of loans held-for-investment to held-for-sale | $ 4,084 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF OPERATION TriState Capital Holdings, Inc. ( "we", "us", "our" or the “Company”) is a registered bank holding company pursuant to the Bank Holding Company Act of 1956, as amended. The Company has three wholly-owned subsidiaries: TriState Capital Bank (the “Bank”), a Pennsylvania-chartered state bank; Chartwell Investment Partners, LLC ("Chartwell"), a registered investment advisor; and Chartwell TSC Securities Corp. ("CTSC Securities"), which is applying to be registered as a broker/dealer with the Securities and Exchange Commission ("SEC") and Financial Industry Regulatory Authority ("FINRA"). Chartwell was established through the acquisition of substantially all the assets of Chartwell Investment Partners, LP, which was effective March 5, 2014. The Bank was established to serve the commercial banking and private banking needs of middle-market businesses and high-net-worth individuals. Chartwell provides investment management services to institutional, sub-advisory, and separately managed account clients. CTSC Securities was capitalized in May 2014, with a primary business of facilitating distribution and marketing efforts for the proprietary investment products provided by Chartwell, including shares of mutual funds advised and/or administered by Chartwell and private funds advised and/or administered by Chartwell. Regulatory approval was received and the Bank commenced operations on January 22, 2007. The Company and the Bank are subject to regulatory examination by the Federal Deposit Insurance Corporation (“FDIC”), the Pennsylvania Department of Banking and Securities, and the Federal Reserve. Chartwell is a registered investment advisor regulated by the SEC. CTSC Securities, once registered, will be a broker/dealer regulated by the SEC and FINRA. The Bank conducts business through its main office located in Pittsburgh, Pennsylvania, as well as its four additional representative offices in Cleveland, Ohio; Philadelphia, Pennsylvania; Edison, New Jersey; and New York, New York. Chartwell conducts business through its office located in Berwyn, Pennsylvania and CTSC Securities will conduct business through its office located in Pittsburgh, Pennsylvania. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States of America requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of related revenue and expense during the reporting period. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual conditions could be worse than those anticipated in the estimates, which could materially affect the financial results of our operations and financial condition. The material estimates that are particularly susceptible to significant changes relate to the determination of the allowance for loan losses, evaluation of goodwill and other intangible assets for impairment, and deferred income taxes and its related recoverability, which are discussed later in this section. CONSOLIDATION The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, the Bank, Chartwell (since the acquisition on March 5, 2014) and CTSC Securities (since its initial capitalization in May 2014), after elimination of inter-company accounts and transactions. The accounts of the Bank, in turn, include its wholly-owned subsidiary, Meadowood Asset Management, LLC, after elimination of inter-company accounts and transactions. The unaudited consolidated financial statements of the Company presented herein have been prepared pursuant to rules of the Securities and Exchange Commission for quarterly reports on form 10-Q and do not include all of the information and note disclosures required by GAAP for a full year presentation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures, considered necessary for the fair presentation of the accompanying consolidated financial statements, have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2014 , included in the Company's Annual Report on Form 10-K. CASH AND CASH EQUIVALENTS For purposes of reporting cash flows, the Company has defined cash and cash equivalents as cash, interest-earning deposits with other institutions, federal funds sold, and short-term investments which have an original maturity of 90 days or less. INVESTMENT SECURITIES The Company’s investments are classified as either: (1) held-to-maturity – debt securities that the Company intends to hold until maturity and are reported at amortized cost; (2) trading securities – debt and certain equity securities bought and held principally for the purpose of selling them in the near term and reported at fair value, with unrealized gains and losses included in earnings; or (3) available-for-sale – debt and certain equity securities not classified as either held-to-maturity or trading securities and reported at fair value, with changes in fair value reported as a component of accumulated other comprehensive income (loss). The cost of securities sold is determined on a specific identification basis. Amortization of premiums and accretion of discounts are recorded as interest income from investments over the life of the security utilizing the level yield method. We evaluate impaired investment securities quarterly to determine if impairments are temporary or other-than-temporary. For impaired debt securities, management first determines whether it intends to sell or if it is more-likely than not that it will be required to sell the impaired securities. This determination considers current and forecasted liquidity requirements, regulatory and capital requirements and securities portfolio management. If the Company intends to sell a security with a fair value below amortized cost or if it is more-likely than not that it will be required to sell such a security before recovery, an other-than-temporary impairment (“OTTI”) charge is recorded through current period earnings for the full decline in fair value below amortized cost. For debt securities that the Company does not intend to sell or it is more likely than not that it will not be required to sell before recovery, an OTTI charge is recorded through current period earnings for the amount of the valuation decline below amortized cost that is attributable to credit losses. The remaining difference between the debt security’s fair value and amortized cost (that is, the decline in fair value not attributable to credit losses) is recognized in other comprehensive income (loss), in the consolidated statements of comprehensive income as well as the shareholders’ equity section of the consolidated statements of financial condition, on an after-tax basis. LOANS Loans and leases held-for investment are stated at unpaid principal balances, net of deferred loan fees and costs. Loans held-for-sale are stated at the lower of cost or fair value. Interest income on loans is accrued at the contractual rate on the principal amount outstanding and includes the amortization of deferred loan fees and costs. Deferred loan fees and costs are amortized to interest income over the life of the loan, taking into consideration scheduled payments and prepayments. The Company considers a loan to be a Troubled Debt Restructuring (“TDR”) when there is a concession made to a financially troubled borrower without adequate consideration provided to the Company. Once a loan is deemed to be a TDR, the Company considers whether the loan should be placed in non-accrual status. In assessing accrual status, the Company considers the likelihood that repayment and performance according to modified terms will be achieved, as well as the borrower’s historical payment performance. A loan is designated and reported as TDR until such loan is either paid-off or sold, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the remaining principal and interest will be collected according to the restructured agreement. The recognition of interest income on a loan is discontinued when, in management's opinion, it is probable the borrower is unable to meet payments as they become due or when the loan becomes 90 days past due, whichever occurs first. All unpaid accrued interest on such loans is reversed. Such interest ultimately collected is applied to reduce principal if there is doubt about the collectability of principal. If a borrower brings a loan current for which accrued interest has been reversed, then the recognition of interest income on the loan is resumed, once the loan has been current for a period of six consecutive months or greater. The Company is a party to financial instruments with off-balance sheet risk (commitments to extend credit) in the normal course of business to meet the financing needs of its customers. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the commitment. Commitments generally have fixed expiration dates or other termination clauses (i.e. demand loans) and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the unfunded commitment amount does not necessarily represent future cash requirements. The Company evaluates each customer's credit worthiness on a case-by-case basis using the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained, if deemed necessary by the Company upon extension of a commitment, is based on management's credit evaluation of the borrower. OTHER REAL ESTATE OWNED Real estate, other than bank premises, is recorded at the lower of the related loan balance or fair value less estimated selling costs at the time of acquisition. Fair value is determined based on an independent appraisal. Expenses related to holding the property are charged against earnings in the current period. Depreciation is not recorded on the other real estate owned (“OREO”) properties. ALLOWANCE FOR LOAN LOSSES The allowance for loan losses is established through provisions for loan losses that are charged to operations. Loans are charged against the allowance for loan losses when management believes that the principal is uncollectible. If, at a later time, amounts are recovered with respect to loans previously charged off, the recovered amount is credited to the allowance for loan losses. The allowance is appropriate, in management's judgment, to cover probable losses inherent in the loan portfolio as of September 30, 2015 and December 31, 2014 . Management’s judgment takes into consideration general economic conditions, diversification and seasoning of the loan portfolio, historic loss experience, identified credit problems, delinquency levels and adequacy of collateral. Although management believes it has used the best information available to it in making such determinations, and that the present allowance for loan losses is adequate, future adjustments to the allowance may be necessary, and net income may be adversely affected if circumstances differ substantially from the assumptions used in determining the level of the allowance. In addition, as an integral part of their periodic examination, certain regulatory agencies review the adequacy of the Bank’s allowance for loan losses and may direct the Bank to make additions to the allowance based on their judgments about information available to them at the time of their examination. The components of the allowance for loan losses represent estimates based upon Accounting Standards Codification (“ASC”) Topic 450, Contingencies, and ASC Topic 310, Receivables . ASC Topic 450 applies to homogeneous loan pools such as consumer installment, residential mortgages, consumer lines of credit and commercial loans that are not individually evaluated for impairment under ASC Topic 310. ASC Topic 310 is applied to commercial and consumer loans that are individually evaluated for impairment. Under ASC Topic 310, a loan is impaired, based upon current information and events, in management's opinion, when it is probable that the loan will not be repaid according to its original contractual terms, including both principal and interest, or if a loan is designated as a TDR. Management performs individual assessments of impaired loans to determine the existence of loss exposure based upon a discounted cash flows method or where a loan is collateral dependent, based upon the fair value of the collateral less estimated selling costs. In estimating probable loan loss under ASC Topic 450 management considers numerous factors, including historical charge-offs and subsequent recoveries. Management also considers, but is not limited to, qualitative factors that influence our credit quality, such as delinquency and non-performing loan trends, changes in loan underwriting guidelines and credit policies, as well as the results of internal loan reviews. Finally, management considers the impact of changes in current local and regional economic conditions in the markets that we serve. Assessment of relevant economic factors indicates that some of the Company’s primary markets historically tend to lag the national economy, with local economies in our primary market areas also improving or weakening, as the case may be, but at a more measured rate than the national trends. Management bases the computation of the allowance for loan losses under ASC Topic 450 on two factors: the primary factor and the secondary factor. The primary factor is based on the inherent risk identified by management within each of the Company's three loan portfolios based on the historical loss experience of each loan portfolio and the loss emergence period. Management has developed a methodology that is applied to each of the three primary loan portfolios, consisting of commercial and industrial, commercial real estate and private banking. As the loan loss history, mix and risk ratings of each loan portfolio change, the primary factor adjusts accordingly. The allowance for loan losses related to the primary factor is based on our estimates as to probable losses for each loan portfolio. The secondary factor is intended to capture risks related to events and circumstances that management believes may impact the performance of the loan portfolio. Although this factor is more subjective in nature, the methodology focuses on internal and external trends in pre-specified categories (risk factors) and applies a quantitative percentage which drives the secondary factor. There are nine risk factors and each risk factor is assigned a reserve level, based on management's judgment as to the probable impact of each risk factor on each loan portfolio and is monitored on a quarterly basis. As the trend in any risk factor changes, a corresponding change occurs in the reserve associated with each respective risk factor, such that the secondary factor remains current to changes in each loan portfolio. The Company also maintains a reserve for losses on unfunded commitments. This reserve is reflected as a component of other liabilities and, in management’s judgment, is sufficient to cover probable losses inherent in the commitments. Management tracks the level and trends in unused commitments and takes into consideration the same factors as those considered for purposes of the allowance for loan losses on outstanding loans. INVESTMENT MANAGEMENT FEES The Company recognizes investment management fee revenue when the advisory services are performed. Fees are based on assets under management and are calculated pursuant to individual client contracts. Investment management fees are generally paid on a quarterly basis. In a limited number of cases, the Company may earn a performance fee based on investment performance achieved versus a stated benchmark. Performance fees are included in investment management fee revenue in the consolidated statements of income. Investment management fees receivable represent amounts due for contractual investment management services provided to the Company’s clients, primarily institutional investors, mutual funds and individual investors. Management performs credit evaluations of its customers’ financial condition when it is deemed to be necessary, and does not require collateral. The Company provides an allowance for uncollectible accounts based on specifically identified receivables. Investment management fees receivable are considered delinquent when payment is not received within contractual terms and are charged off against the allowance for uncollectible accounts when management determines that recovery is unlikely and the Company ceases its collection efforts. There was no bad debt expense recorded for the nine months ended September 30, 2015 and 2014 , and there was no allowance for uncollectible accounts recorded as of September 30, 2015 and December 31, 2014 . FEDERAL HOME LOAN BANK STOCK The Company is a member of the Federal Home Loan Bank of Pittsburgh (“FHLB”). Member institutions are required to invest in FHLB stock. The stock is carried at cost, which approximates its liquidation value, and it is evaluated for impairment based on the ultimate recoverability of the par value. The following matters are considered by management when evaluating the FHLB stock for impairment: the ability of the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; the impact of legislative and regulatory changes on the institution and its customer base; and the Company's intent and ability to hold its FHLB stock for the foreseeable future. Management believes the Company's holdings in the FHLB stock are ultimately recoverable at par value, as of September 30, 2015 . Cash and stock dividends are reported as non-interest income, in the consolidated statements of income. BUSINESS COMBINATIONS The Company accounts for business combinations using the acquisition method of accounting. Under this method of accounting, the acquired company’s net assets are recorded at fair value as of the date of acquisition, and the results of operations of the acquired company are combined with our results from that date forward. Acquisition costs are expensed when incurred. The difference between the purchase price and the fair value of the net assets acquired (including identified intangibles) is recorded as goodwill. The change in the initial estimate of any contingent earnout amounts is reflected in the consolidated statements of income. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Other intangible assets that have finite lives, such as trade name, client relationships and non-compete agreements are amortized over their estimated useful lives and subject to periodic impairment testing. These other intangible assets are amortized on a straight-line basis over their estimated useful lives which range from four to twenty years . Goodwill and other intangible assets are subject to impairment testing at the reporting unit level, which is conducted at least annually. OFFICE PROPERTIES AND EQUIPMENT Office properties and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the related assets, except for leasehold improvements which are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Estimated useful lives are dependent upon the nature and condition of the asset and range from three to ten years . Repairs and maintenance are charged to expense as incurred, while improvements which extend the useful life are capitalized and depreciated to operating expense over the estimated remaining life of the asset. When the Bank receives an allowance for improvements to be made to one of its leased offices, we record the allowance as a deferred liability and recognize it as a reduction to rent expense over the life of the related lease. BANK OWNED LIFE INSURANCE Bank owned life insurance (“BOLI”) policies on certain officers and employees are recorded at net cash surrender value on the consolidated statements of financial condition. Upon termination of the BOLI policy the Company receives the cash surrender value. BOLI benefits are payable to the Company upon death of the insured. Changes in net cash surrender value are recognized as non-interest income in the consolidated statements of income. DEPOSITS Deposits are stated at principal outstanding and interest on deposits is accrued and charged to expense daily and is paid or credited in accordance with the terms of the respective accounts. BORROWINGS The Company records FHLB advances and subordinated notes payable at their principal amount. Interest expense is recognized based on the coupon rate of the obligations. Costs associated with the acquisition of subordinated notes payable are amortized over the expected term of the borrowing. EARNINGS PER COMMON SHARE Basic earnings per common share ("EPS") is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution of upon the exercise of stock options and vesting of restricted stock awards granted utilizing the treasury stock method. INCOME TAXES The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities with regard to a change in tax rates is recognized in income in the period that includes the enactment date. Management assesses all available evidence to determine the amount of deferred tax assets that are more-likely-than-not to be realized. The available evidence used in connection with the assessments includes taxable income in prior periods, projected taxable income, potential tax planning strategies and projected reversals of deferred tax items. These assessments involve a degree of subjectivity and may undergo significant change. Changes to the evidence used in the assessments could have a material adverse effect on the Company’s results of operations in the period in which they occur. It is the Company’s policy to recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense in the consolidated statements of income. FAIR VALUE MEASUREMENT Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in a principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date, using assumptions market participants would use when pricing an asset or liability. An orderly transaction assumes exposure to the market for a customary period for marketing activities prior to the measurement date and not a forced liquidation or distressed sale. Fair value measurement and disclosure guidance provides a three-level hierarchy that prioritizes the inputs of valuation techniques used to measure fair value into three broad categories: • Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 – Observable inputs such as quoted prices for similar assets and liabilities in active markets, quoted prices for similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs. Fair value may be recorded for certain assets and liabilities every reporting period on a recurring basis or under certain circumstances, on a non-recurring basis. STOCK-BASED COMPENSATION The Company accounts for its stock-based compensation awards based on estimated fair values, for all share-based awards, including stock options and restricted stock, made to employees and directors. The Company accounts for stock-based employee compensation in accordance with the fair value recognition provisions of ASC 718, Compensation – Stock Compensation . As a result, compensation cost for all share-based payments is based on the grant-date fair value estimated in accordance with ASC 718. The value of the portion of the award that is ultimately expected to vest is included in stock-based employee compensation cost in the consolidated statements of income and recorded as a component of additional paid-in capital, for equity-based awards. Compensation expense for all awards is recognized on a straight-line basis over the requisite service period for the entire grant. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Unrealized holding gains and the non-credit component of losses on the Company’s investment securities available-for-sale are included in accumulated other comprehensive income (loss), net of applicable income taxes. Also included in accumulated other comprehensive income (loss) is the remaining unamortized balance of the unrealized holding gains (non-credit losses), net of applicable income taxes, that existed on the transfer date for investment securities reclassified into the held-to-maturity category from the available-for-sale category. TREASURY STOCK The repurchase of the Company's common stock is recorded at cost. At the time of reissuance, the treasury stock account is reduced using the average cost method. Gains and losses on the reissuance of common stock are recorded in additional paid-in capital, to the extent additional paid-in capital from any previous net gains on treasury share transactions exists. Any net deficiency is charged to retained earnings. RECENT ACCOUNTING DEVELOPMENTS In September 2015, the FASB issued Accounting Standards Update ("ASU") 2015-16, " Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments." This ASU will eliminate the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. The ASU is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. For all other entities, the ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted. The adoption of ASU 2015-16 is not expected to have a material impact on the Company’s consolidated financial statements. In June 2015, the FASB issued ASU 2015-10, " Technical Correction and Improvements" which, among other things, corrects the initial codification of FASB Statement No. 140, " Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (as Amended by FASB Statement No. 166, Accounting for Transfers of Financial Assets) ." The initial codification inadvertently added the word “public” to paragraph 860-10-50-7, which was not in the original guidance. The ASU also clarifies that the requirement relates to “involvement by others”. This amendment in ASU 2015-10 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The adoption of ASU 2015-10 is not expected to have a material impact on the Company’s consolidated financial statements. In May 2015, the FASB issued ASU 2015-07, " Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). " This ASU will eliminate the requirement to categorize investments in the fair value hierarchy if their fair value is measured at net asset value (NAV) per share (or its equivalent) using the practical expedient in the FASB’s fair value measurement guidance. Reporting entities are required to adopt the ASU retrospectively. The effective date for public business entities is fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for all entities. The adoption of ASU 2015-07 is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." This ASU provides explicit guidance to help companies evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. This ASU is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. An entity can elect to adopt the amendments either prospectively for all arrangements entered into or materially modified after the effective date, or retrospectively. Early adoption is permitted for all entities. The adoption of ASU 2015-05 is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." This AUS requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. For public business entities, the amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted for financial statements that have not been previously issued. An entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. These disclosures include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (that is, debt issuance cost asset and the debt liability). The adoption of ASU 2015-03 is not expected to have a material impact on the Company’s consolid |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES Investment securities available-for-sale and held-to-maturity are comprised of the following: September 30, 2015 (Dollars in thousands) Amortized Gross Unrealized Gross Unrealized Estimated Investment securities available-for-sale: Corporate bonds $ 46,111 $ 88 $ 96 $ 46,103 Trust preferred securities 17,546 — 889 16,657 Non-agency mortgage-backed securities 6,249 — 27 6,222 Non-agency collateralized loan obligations 11,991 — 97 11,894 Agency collateralized mortgage obligations 51,340 96 76 51,360 Agency mortgage-backed securities 28,509 365 111 28,763 Agency debentures 4,708 14 — 4,722 Equity securities (short-duration, high-yield-bond mutual fund) 8,273 — 409 7,864 Total investment securities available-for-sale 174,727 563 1,705 173,585 Investment securities held-to-maturity: Corporate bonds 19,449 491 13 19,927 Agency debentures 2,452 56 — 2,508 Municipal bonds 24,526 310 10 24,826 Total investment securities held-to-maturity 46,427 857 23 47,261 Total $ 221,154 $ 1,420 $ 1,728 $ 220,846 December 31, 2014 (Dollars in thousands) Amortized Gross Unrealized Gross Unrealized Estimated Investment securities available-for-sale: Corporate bonds $ 31,833 $ 3 $ 168 $ 31,668 Trust preferred securities 17,446 — 645 16,801 Non-agency mortgage-backed securities 11,617 — 32 11,585 Agency collateralized mortgage obligations 56,984 127 248 56,863 Agency mortgage-backed securities 32,564 502 186 32,880 Agency debentures 8,678 59 — 8,737 Equity securities (short-duration, high-yield-bond mutual fund) 8,110 — 72 8,038 Total investment securities available-for-sale 167,232 691 1,351 166,572 Investment securities held-to-maturity: Corporate bonds 14,452 335 — 14,787 Agency debentures 5,000 1 — 5,001 Municipal bonds 20,139 201 15 20,325 Total investment securities held-to-maturity 39,591 537 15 40,113 Total $ 206,823 $ 1,228 $ 1,366 $ 206,685 Interest income on investment securities included $825,000 in taxable interest income, $109,000 in non-taxable interest income and $57,000 in dividend income for the three months ended September 30, 2015 , as compared to taxable interest income of $661,000 , non-taxable interest income of $89,000 and dividend income of $47,000 for the three months ended September 30, 2014 . Interest income on investment securities included $2.1 million in taxable interest income, $297,000 in non-taxable interest income and $162,000 in dividend income for the nine months ended September 30, 2015 , as compared to taxable interest income of $1.9 million , non-taxable interest income of $269,000 and dividend income of $47,000 for the nine months ended September 30, 2014 . As of September 30, 2015 , the contractual maturities of the debt securities are: September 30, 2015 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Estimated Amortized Estimated Due in one year or less $ — $ — $ — $ — Due from one to five years 46,111 46,103 11,045 11,515 Due from five to ten years 6,211 6,226 33,958 34,292 Due after ten years 114,132 113,392 1,424 1,454 Total debt securities $ 166,454 $ 165,721 $ 46,427 $ 47,261 Included in the $113.4 million fair value of debt securities available-for-sale with a contractual maturity due after ten years as of September 30, 2015 , were $101.6 million , or 89.6% , in floating-rate securities. Included in the $34.0 million amortized cost of debt securities held-to-maturity with a contractual maturity due from five to ten years as of September 30, 2015, were $8.0 million that have call provisions in one to five years that would either mature, if called, or become floating-rate securities after the call date. Prepayments may shorten the contractual lives of the collateralized mortgage obligations and mortgage-backed securities. There were no sales of investment securities available-for-sale during the three months ended September 30, 2015 and 2014 . Proceeds from the sale of investment securities available-for-sale during the nine months ended September 30, 2015 and 2014 , were $9.7 million and $69.6 million , respectively. Gross gains of $34,000 and $1.4 million were realized on these sales and reclassified out of accumulated other comprehensive income (loss) during the nine months ended September 30, 2015 and 2014 , respectively. There were $17,000 and $1,000 in gross losses realized during the nine months ended September 30, 2015 and 2014 , on investment securities available-for-sale. Investment securities available-for-sale of $6.7 million , as of September 30, 2015 , were held in safekeeping at the FHLB and were included in the calculation of borrowing capacity. The following tables show the fair value and gross unrealized losses on investment securities available-for-sale and held-to-maturity, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of September 30, 2015 and December 31, 2014 , respectively: September 30, 2015 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Investment securities available-for-sale: Corporate bonds $ 24,632 $ 96 $ — $ — $ 24,632 $ 96 Trust preferred securities 12,375 673 4,283 216 16,658 889 Non-agency mortgage-backed securities — — 6,222 27 6,222 27 Non-agency collateralized loan obligations 9,894 97 — — 9,894 97 Agency collateralized mortgage obligations 16,187 15 12,291 61 28,478 76 Agency mortgage-backed securities — — 11,296 111 11,296 111 Equity securities — — 7,864 409 7,864 409 Total investment securities available-for-sale 63,088 881 41,956 824 105,044 1,705 Investment securities held-to-maturity: Corporate bonds 2,436 13 — — 2,436 13 Municipal bonds 3,901 10 — — 3,901 10 Total investment securities held-to-maturity 6,337 23 — — 6,337 23 Total temporarily impaired securities $ 69,425 $ 904 $ 41,956 $ 824 $ 111,381 $ 1,728 December 31, 2014 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Investment securities available-for-sale: Corporate bonds $ 26,723 $ 145 $ 2,263 $ 23 $ 28,986 $ 168 Trust preferred securities 12,601 376 4,200 269 16,801 645 Non-agency mortgage-backed securities 11,585 32 — — 11,585 32 Agency collateralized mortgage obligations 9,317 45 30,327 203 39,644 248 Agency mortgage-backed securities — — 12,073 186 12,073 186 Equity securities 8,038 72 — — 8,038 72 Total investment securities available-for-sale 68,264 670 48,863 681 117,127 1,351 Investment securities held-to-maturity: Municipal bonds 2,857 2 1,446 13 4,303 15 Total investment securities held-to-maturity 2,857 2 1,446 13 4,303 15 Total temporarily impaired securities $ 71,121 $ 672 $ 50,309 $ 694 $ 121,430 $ 1,366 The change in the fair values of our municipal bonds, agency collateralized mortgage obligation and agency mortgage-backed securities are primarily the result of interest rate fluctuations. To assess for impairment on municipal bonds, corporate bonds, single-issuer trust preferred securities, non-agency mortgage-backed securities, non-agency collateralized loan obligations and certain equity securities, management evaluates the underlying issuer's financial performance and the related credit rating information through a review of publicly available financial statements and other publicly available information. This review did not identify any issues related to the ultimate repayment of principal and interest on these securities. In addition, the Company has the ability and intent to hold the securities in an unrealized loss position until recovery of their amortized cost. Based on this, the Company considers all of the unrealized losses to be temporary impairment losses. Within the available-for-sale portfolio, there were 27 positions, aggregating to $1.7 million in unrealized losses that were temporarily impaired as of September 30, 2015 , of which 10 positions were in an unrealized loss position for more than twelve months totaling $824,000 . As of December 31, 2014 , there were 27 positions, aggregating to $1.4 million in unrealized losses that were temporarily impaired, of which nine positions were in an unrealized loss position for more than twelve months totaling $681,000 . Within the held-to-maturity portfolio, there were five positions, aggregating to $23,000 in unrealized losses that were temporarily impaired as of September 30, 2015 , of which no positions were in an unrealized loss position for more than twelve months. As of December 31, 2014 , there were five positions, aggregating to $15,000 in unrealized losses that were temporarily impaired, of which two positions were in an unrealized loss position for more than twelve months totaling $13,000 . There were no investment securities classified as trading securities outstanding as of September 30, 2015 and December 31, 2014 , respectively. There was no activity in investment securities classified as trading during the three and nine months ended September 30, 2015 and 2014 . |
Loans
Loans | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
LOANS | LOANS We generate loans through our middle-market and private banking channels. These channels provide risk diversification and offer significant growth opportunities. The middle-market banking channel consists of our commercial and industrial ("C&I") and commercial real estate ("CRE") loan portfolios that serve middle-market businesses and real estate developers. The private banking channel includes loans secured by cash, marketable securities and other asset-based loans to executives, high-net-worth individuals, trusts and businesses, many of whom we source through referral relationships with independent broker/dealers, wealth managers, family offices, trust companies and other financial intermediaries. Loans held-for-investment by channel was comprised of the following: September 30, 2015 (Dollars in thousands) Commercial Commercial Private Total Loans held-for-investment, before deferred fees $ 631,144 $ 833,626 $ 1,197,042 $ 2,661,812 Less: net deferred loan (fees) costs (1,013 ) (2,449 ) 2,841 (621 ) Loans held-for-investment, net of deferred fees 630,131 831,177 1,199,883 2,661,191 Less: allowance for loan losses (12,326 ) (5,729 ) (1,295 ) (19,350 ) Loans held-for-investment, net $ 617,805 $ 825,448 $ 1,198,588 $ 2,641,841 December 31, 2014 (Dollars in thousands) Commercial Commercial Private Total Loans held-for-investment, before deferred fees $ 679,274 $ 735,531 $ 986,898 $ 2,401,703 Less: net deferred loan (fees) costs (1,781 ) (2,274 ) 2,404 (1,651 ) Loans held-for-investment, net of deferred fees 677,493 733,257 989,302 2,400,052 Less: allowance for loan losses (13,501 ) (4,755 ) (2,017 ) (20,273 ) Loans held-for-investment, net $ 663,992 $ 728,502 $ 987,285 $ 2,379,779 The Company's customers have unused loan commitments. Often these commitments are not fully utilized and therefore the total amount does not necessarily represent future cash requirements. The amount of unfunded commitments, including standby letters of credit, as of September 30, 2015 and December 31, 2014 , was $1.2 billion and $973.4 million , respectively. The interest rate for each commitment is based on the prevailing market conditions at the time of funding. The lending commitment maturities as of September 30, 2015 , were as follows: $833.7 million in one year or less; $208.2 million in one to three years; and $154.9 million in greater than three years. The reserve for losses on unfunded commitments was $590,000 and $555,000 as of September 30, 2015 and December 31, 2014 , respectively, which includes reserves for probable losses on unfunded loan commitments, including standby letters of credit and also risk participations. On March 14, 2014, we entered into a loan purchase agreement to acquire $219.7 million (including fees and interest receivable) of loans secured by cash and marketable securities that are included in our private banking channel loan portfolio. This transaction closed on April 11, 2014. As of September 30, 2015 and December 31, 2014 , the Company had loans in the process of origination totaling approximately $41.8 million and $18.7 million , respectively, which extend over varying periods of time with the majority being disbursed within a 30 to 60 day period. The Company issues standby letters of credit in the normal course of business. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. The Company would be required to perform under the standby letters of credit when drawn upon by the guaranteed party in the case of non-performance by the Company’s customer. Collateral may be obtained based on management’s credit assessment of the customer. The unfunded commitments amount related to standby letters of credit as of September 30, 2015 and December 31, 2014 , included in the total listed above, is $78.4 million and $89.3 million , respectively, of which a portion is collateralized. Should the Company be obligated to perform under the standby letters of credit the Company will seek recourse from the customer for reimbursement of amounts paid. As of September 30, 2015 , $29.1 million (in the aggregate) in standby letters of credit will expire within one year, while the remaining standby letters of credit will expire in periods greater than one year. During the nine months ended September 30, 2015 , there were two draws on standby letters of credit totaling $146,000 , which were immediately repaid by the borrower or converted to an outstanding loan based on the contractual terms. During the nine months ended September 30, 2014 , there was one draw on standby letters of credit for $100,000 , which was immediately repaid by the borrower. Most of these commitments are expected to expire without being drawn upon and the total amount does not necessarily represent future cash requirements. The probable liability for losses on standby letters of credit was included in the reserve for losses on unfunded commitments. The Company has entered into risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are a participant. The risk participation agreements provide credit protection to the financial institution counterparties should the customers fail to perform on their interest rate derivative contracts. The potential liability for outstanding obligations was included in the reserve for losses on unfunded commitments. |
Allowance for Loan Losses
Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2015 | |
Allowance for Loan Losses [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES Our allowance for loan losses represents our estimate of probable loan losses inherent in the loan portfolio at a specific point in time. This estimate includes losses associated with specifically identified loans, as well as estimated probable credit losses inherent in the remainder of the loan portfolio. Additions are made to the allowance through both periodic provisions charged to income and recoveries of losses previously incurred. Reductions to the allowance occur as loans are charged off or when the credit history of any of the three loan portfolios improves . Management evaluates the adequacy of the allowance quarterly, and in doing so relies on various factors including, but not limited to, assessment of historical loss experience, delinquency and non-accrual trends, portfolio growth, underlying collateral coverage and current economic conditions. This evaluation is subjective and requires material estimates that may change over time. In addition, management evaluates the overall methodology for the allowance for loan losses on an annual basis. During the three months ended September 30, 2015 , management made enhancements to the look-back period and loss emergence period used in the allowance for loan losses calculation to account for changes in the Company's portfolio and related historical loss experience. The calculation of the allowance for loan losses takes into consideration the inherent risk identified within each of the Company’s three primary loan portfolios, commercial and industrial, commercial real estate and private banking. In addition, management takes into account the historical loss experience of each loan portfolio, to ensure that the resultant allowance for loan losses is sufficient to cover probable losses inherent in such loan portfolios. Refer to Note 1, Summary of Significant Accounting Policies , for more details on the Company’s allowance for loan losses policy. The following discusses key characteristics and risks within each primary loan portfolio: Middle-Market Banking: Commercial and Industrial Loans. This loan portfolio primarily includes loans made to service companies or manufacturers generally for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing, acquisitions and recapitalizations. Cash flow from the borrower’s operations is the primary source of repayment for these loans, except for certain commercial loans that are secured by cash and marketable securities. The industry of the borrower is an important indicator of risk, but there are also more specific risks depending on the condition of the local/regional economy. Collateral for these types of loans often do not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt. Any C&I loans collateralized by cash and marketable securities are treated the same as private banking loans for purposes of the allowance for loan loss calculation. In addition, shared national credit loans which also involve a private equity sponsor are combined as a homogeneous group and evaluated separately based on the historical loss trend of such loans. Middle-Market Banking: Commercial Real Estate Loans. This loan portfolio includes loans secured by commercial purpose real estate, including both owner occupied properties and investment properties for various purposes including office, retail, industrial, multifamily and hospitality. Individual project cash flows as well as global cash flows from the developer are the primary sources of repayment for these loans. Also included are commercial construction loans to finance the construction or renovation of structures as well as to finance the acquisition and development of raw land for various purposes. The increased level of risk of these loans is generally confined to the construction period. If there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal. The underlying purpose/collateral of the loans is an important indicator of risk for this loan portfolio. Additional risks exist and are dependent on several factors such as the condition of the local/regional economy, whether or not the project is owner occupied, and the type of project and the experience and resources of the developer. Private Banking Channel Loans. Our private banking lending activities are conducted on a national basis. This loan portfolio primarily includes loans made to high-net-worth individuals, trusts and businesses that may be secured by cash, marketable securities, residential property or other financial assets, as well as unsecured loans and lines of credit. The primary sources of repayment for these loans are the income and/or assets of the borrower. The underlying collateral is the most important indicator of risk for this loan portfolio. The overall lower risk profile of this portfolio is driven by loans secured by cash and marketable securities, which was 87.7% and 81.2% of total private banking channel loans as of September 30, 2015 and December 31, 2014 , respectively. Management further assesses risk within each loan portfolio using key inherent risk differentiators. The components of the allowance for loan losses represent estimates based upon ASC Topic 450, Contingencies, and ASC Topic 310, Receivables. ASC Topic 450 applies to homogeneous loan pools such as consumer installment, residential mortgages and consumer lines of credit, as well as commercial loans that are not individually evaluated for impairment under ASC Topic 310. Impaired loans are individually evaluated for impairment under ASC Topic 310. On a monthly basis, management monitors various credit quality indicators for both the commercial and consumer loan portfolios, including delinquency, non-performing status, changes in risk ratings, changes in the underlying performance of the borrowers and other relevant factors. On a daily basis, the Company prices and monitors the collateral of margin loans secured by cash and marketable securities within the private banking channel which further reduces the risk profile of that portfolio. Refer to Note 1, Summary of Significant Accounting Policies , for the Company’s policy for determining past due status of loans. Management continually monitors the loan portfolio through its internal risk rating system. Loan risk ratings are assigned based upon the creditworthiness of the borrower. Loan risk ratings are reviewed on an ongoing basis according to internal policies. Loans within the pass rating are believed to have a lower risk of loss than loans risk rated as special mention, substandard and doubtful, which are believed to have an increasing risk of loss. The Company’s risk ratings are consistent with regulatory guidance and are as follows: Non-Rated – Loans to individuals and trusts are not individually risk rated, unless they are fully secured by liquid assets or cash, or have an exposure of $250,000 or greater and have certain actionable covenants, such as a liquidity covenant or a financial reporting covenant. In addition, commercial loans with an exposure of less than $500,000 are not required to be individually risk rated. Any loan, regardless of size, is risk rated if it is secured by marketable securities or if it becomes a criticized loan. The majority of the private banking loans that are not risk rated are residential mortgages and home equity loans. We monitor the performance of non-rated loans through ongoing reviews of payment delinquencies. These loans comprised 3.1% and 4.3% of the total loan portfolio, as of September 30, 2015 and December 31, 2014 , respectively. For loans that are not risk-rated, the most important indicators of risk are the existence of collateral, the type of collateral and for consumer real estate loans, whether the Bank has a first or second lien position. Pass – The loan is currently performing in accordance with its contractual terms. Special Mention – A special mention loan has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects or in our credit position at some future date. Economic and market conditions, beyond the customer’s control, may in the future necessitate this classification. Substandard – A substandard loan is not adequately protected by the net worth and/or paying capacity of the obligor or by the collateral pledged, if any. Substandard loans have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful – A doubtful loan has all the weaknesses inherent in a loan categorized as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The following tables present the recorded investment in loans by credit quality indicator: September 30, 2015 (Dollars in thousands) Commercial Commercial Private Total Non-rated $ — $ — $ 81,567 $ 81,567 Pass 582,550 825,314 1,116,435 2,524,299 Special mention 28,207 2,951 — 31,158 Substandard 16,500 2,912 1,881 21,293 Doubtful 2,874 — — 2,874 Loans held-for-investment $ 630,131 $ 831,177 $ 1,199,883 $ 2,661,191 December 31, 2014 (Dollars in thousands) Commercial Commercial Private Total Non-rated $ 129 $ — $ 104,228 $ 104,357 Pass 617,396 729,066 881,235 2,227,697 Special mention 26,105 693 1,667 28,465 Substandard 28,916 3,498 2,172 34,586 Doubtful 4,947 — — 4,947 Loans held-for-investment $ 677,493 $ 733,257 $ 989,302 $ 2,400,052 Changes in the allowance for loan losses were as follows for the three months ended September 30, 2015 and 2014 : Three Months Ended September 30, 2015 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 14,621 $ 4,749 $ 2,037 $ 21,407 Provision (credit) for loan losses (1,579 ) 980 (742 ) (1,341 ) Charge-offs (1,486 ) — — (1,486 ) Recoveries 770 — — 770 Balance, end of period $ 12,326 $ 5,729 $ 1,295 $ 19,350 Three Months Ended September 30, 2014 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 16,459 $ 4,288 $ 2,075 $ 22,822 Provision (credit) for loan losses 714 103 (166 ) 651 Charge-offs (1,220 ) — — (1,220 ) Recoveries 29 — 94 123 Balance, end of period $ 15,982 $ 4,391 $ 2,003 $ 22,376 There was a charge-off of $1.5 million on one C&I loan and there were recoveries of $770,000 on two C&I loans for the three months ended September 30, 2015 . There was a charge-off of $1.2 million on one C&I loan and there were recoveries of $123,000 on one C&I loan and one private banking loan for the three months ended September 30, 2014 . Changes in the allowance for loan losses were as follows for the nine months ended September 30, 2015 and 2014 : Nine Months Ended September 30, 2015 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 13,501 $ 4,755 $ 2,017 $ 20,273 Provision (credit) for loan losses (470 ) 974 (735 ) (231 ) Charge-offs (1,486 ) — — (1,486 ) Recoveries 781 — 13 794 Balance, end of period $ 12,326 $ 5,729 $ 1,295 $ 19,350 Nine Months Ended September 30, 2014 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 11,881 $ 5,104 $ 2,011 $ 18,996 Provision (credit) for loan losses 11,183 (713 ) (102 ) 10,368 Charge-offs (7,577 ) — — (7,577 ) Recoveries 495 — 94 589 Balance, end of period $ 15,982 $ 4,391 $ 2,003 $ 22,376 There was a charge-off of $1.5 million on one C&I loan and there were recoveries of $794,000 on four C&I loans and one private banking loan for the nine months ended September 30, 2015 . There were charge-offs of $7.6 million on four C&I loans and there were recoveries of $589,000 on two C&I loans and one private banking loan for the nine months ended September 30, 2014 . The following tables present the age analysis of past due loans segregated by class of loan: September 30, 2015 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Total Commercial and industrial $ — $ — $ 2,926 $ 2,926 $ 627,205 $ 630,131 Commercial real estate — — 2,912 2,912 828,265 831,177 Private banking — 626 1,202 1,828 1,198,055 1,199,883 Loans held-for-investment $ — $ 626 $ 7,040 $ 7,666 $ 2,653,525 $ 2,661,191 December 31, 2014 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Total Commercial and industrial $ 547 $ 524 $ 263 $ 1,334 $ 676,159 $ 677,493 Commercial real estate — — 3,498 3,498 729,759 733,257 Private banking — 1,775 109 1,884 987,418 989,302 Loans held-for-investment $ 547 $ 2,299 $ 3,870 $ 6,716 $ 2,393,336 $ 2,400,052 Non-Performing and Impaired Loans Management monitors the delinquency status of the loan portfolio on a monthly basis. Loans were considered non-performing when interest and principal were 90 days or more past due or management has determined that it is probable the borrower is unable to meet payments as they become due. The risk of loss is generally highest for non-performing loans. Management determines loans to be impaired when, based upon current information and events, it is probable that the loan will not be repaid according to the original contractual terms of the loan agreement, including both principal and interest, or if a loan is designated as a TDR. Refer to Note 1, Summary of Significant Accounting Policies , for the Company’s policy on evaluating loans for impairment and interest income. The following tables present the Company’s investment in loans considered to be impaired and related information on those impaired loans: As of and for the Nine Months Ended September 30, 2015 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial and industrial $ 14,376 $ 19,785 $ 5,592 $ 15,965 $ — Commercial real estate — — — — — Private banking 576 684 576 617 — Total with a related allowance recorded 14,952 20,469 6,168 16,582 — Without a related allowance recorded: Commercial and industrial 580 1,856 — 942 22 Commercial real estate 2,912 9,067 — 3,108 — Private banking 1,203 1,448 — 1,203 — Total without a related allowance recorded 4,695 12,371 — 5,253 22 Total: Commercial and industrial 14,956 21,641 5,592 16,907 22 Commercial real estate 2,912 9,067 — 3,108 — Private banking 1,779 2,132 576 1,820 — Total $ 19,647 $ 32,840 $ 6,168 $ 21,835 $ 22 As of and for the Twelve Months Ended December 31, 2014 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial and industrial $ 24,402 $ 34,459 $ 4,902 $ 27,014 $ — Commercial real estate — — — — — Private banking 681 767 681 746 — Total with a related allowance recorded 25,083 35,226 5,583 27,760 — Without a related allowance recorded: Commercial and industrial 791 2,013 — 953 27 Commercial real estate 3,498 9,705 — 3,498 — Private banking 1,388 1,632 — 1,444 — Total without a related allowance recorded 5,677 13,350 — 5,895 27 Total: Commercial and industrial 25,193 36,472 4,902 27,967 27 Commercial real estate 3,498 9,705 — 3,498 — Private banking 2,069 2,399 681 2,190 — Total $ 30,760 $ 48,576 $ 5,583 $ 33,655 $ 27 Impaired loans as of September 30, 2015 and December 31, 2014 , were $19.6 million and $30.8 million , respectively. There was no interest income recognized on these loans for the nine months ended September 30, 2015 , and the twelve months ended December 31, 2014 , while these loans were on non-accrual status. As of September 30, 2015 and December 31, 2014 , there were no loans 90 days or more past due and still accruing interest income. Impaired loans were evaluated using a discounted cash flow method or based on the fair value of the collateral less estimated selling costs. Based on those evaluations, as of September 30, 2015 , there were specific reserves totaling $6.2 million , which were included in the $19.4 million allowance for loan losses. Also included in impaired loans were three C&I loans, one CRE loan and two private banking loans with a combined balance of $4.7 million as of September 30, 2015 , with no corresponding specific reserve since these loans had a net realizable value which management believes will be recovered from the borrower. As of December 31, 2014 , there were specific reserves totaling $5.6 million , which were included in the $20.3 million allowance for loan losses. Also included in impaired loans were two C&I loans, two CRE loans and three private banking loans with a combined balance of $5.7 million as of December 31, 2014 , with no corresponding specific reserve since these loans had a net realizable value which management believes will be recovered from the borrower. The following tables present the allowance for loan losses and recorded investment in loans by class: September 30, 2015 (Dollars in thousands) Commercial Commercial Private Total Allowance for loan losses: Individually evaluated for impairment $ 5,592 $ — $ 576 $ 6,168 Collectively evaluated for impairment 6,734 5,729 719 13,182 Total allowance for loan losses $ 12,326 $ 5,729 $ 1,295 $ 19,350 Loans held-for-investment: Individually evaluated for impairment $ 14,956 $ 2,912 $ 1,779 $ 19,647 Collectively evaluated for impairment 615,175 828,265 1,198,104 2,641,544 Loans held-for-investment $ 630,131 $ 831,177 $ 1,199,883 $ 2,661,191 December 31, 2014 (Dollars in thousands) Commercial Commercial Private Total Allowance for loan losses: Individually evaluated for impairment $ 4,902 $ — $ 681 $ 5,583 Collectively evaluated for impairment 8,599 4,755 1,336 14,690 Total allowance for loan losses $ 13,501 $ 4,755 $ 2,017 $ 20,273 Loans held-for-investment: Individually evaluated for impairment $ 25,193 $ 3,498 $ 2,069 $ 30,760 Collectively evaluated for impairment 652,300 729,759 987,233 2,369,292 Loans held-for-investment $ 677,493 $ 733,257 $ 989,302 $ 2,400,052 Troubled Debt Restructuring The following table provides additional information on the Company’s loans designated as troubled debt restructurings: (Dollars in thousands) September 30, December 31, Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring: Performing loans accruing interest $ 528 $ 528 Non-accrual loans 15,522 14,107 Total troubled debt restructurings $ 16,050 $ 14,635 Of the non-accrual loans as of September 30, 2015 , five C&I loans and one residential mortgage loan were designated by the Company as TDRs. There was also one C&I loan that was still accruing interest and designated by the Company as a performing TDR as of September 30, 2015 . The aggregate recorded investment of these loans was $16.1 million . There were unused commitments of $890,000 on these loans as of September 30, 2015 , of which $39,000 was related to an accruing TDR. Of the non-accrual loans as of December 31, 2014 , three C&I loans, one CRE loan and two residential mortgage loans were designated by the Company as TDRs. There was also one C&I loan that was still accruing interest and designated by the Company as a performing TDR as of December 31, 2014 . The aggregate net carrying value of these loans was $14.6 million . There were unused commitments of $175,000 on these loans as of December 31, 2014 , of which $54,000 was related to an accruing TDR. The modifications made to restructured loans typically consist of an extension or reduction of the payment terms, or the deferral of principal payments. There were two loans totaling $4.0 million that were modified as a TDR within twelve months of the corresponding balance sheet date with a payment default during the nine months ended September 30, 2015 . These loans were already on non-accrual status and fully secured or adequately reserved as of September 30, 2015 . There were no payment defaults during the nine months ended September 30, 2014 , for loans modified as TDRs within twelve months of the corresponding balance sheet date. There were no financial effects of modifications made to loans designated as TDRs during the three months ended September 30, 2015 and 2014 . The financial effects of modifications made to loans designated as TDRs during the nine months ended September 30, 2015 and 2014 , were as follows: Nine Months Ended September 30, 2015 (Dollars in thousands) Count Recorded Investment at the time of Modification Current Recorded Investment Allowance for Loan Losses at the time of Modification Current Allowance for Loan Losses Commercial and industrial: Change in interest terms 1 $ 4,064 $ — $ 400 $ — Extended term and deferred principal 1 433 — 433 — Deferred principal 2 6,849 2,874 1,500 1,868 Total 4 $ 11,346 $ 2,874 $ 2,333 $ 1,868 Nine Months Ended September 30, 2014 (Dollars in thousands) Count Recorded Investment at the time of Modification Current Recorded Investment Allowance for Loan Losses at the time of Modification Current Allowance for Loan Losses Commercial and industrial: Extended term, advanced additional funds, forgave principal 1 $ 5,218 $ 4,696 $ 1,968 $ 1,120 Private Banking: Extended term, reduced interest rate 1 1,266 1,098 100 — Total 2 $ 6,484 $ 5,794 $ 2,068 $ 1,120 Other Real Estate Owned During the nine months ended September 30, 2015 , we acquired a property related to an impaired loan for $396,000 based on the appraised value, less estimated selling costs. As of September 30, 2015 and December 31, 2014 , the balance of the other real estate owned portfolio was $1.8 million and $1.4 million , respectively. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2015 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS Interest Rate Weighted Average Balance as of (Dollars in thousands) September 30, September 30, December 31, September 30, December 31, Demand and savings accounts: Noninterest-bearing checking accounts — — — $ 131,622 $ 177,606 Interest-bearing checking accounts 0.05 to 0.50% 0.40 % 0.42 % 101,930 75,679 Money market deposit accounts 0.05 to 1.10% 0.43 % 0.39 % 1,439,919 1,244,921 Total demand and savings accounts 1,673,471 1,498,206 Time deposits 0.05 to 1.39% 0.76 % 0.69 % 927,037 838,747 Total deposit balance $ 2,600,508 $ 2,336,953 Average rate paid on interest-bearing accounts 0.55 % 0.51 % As of September 30, 2015 and December 31, 2014 , the Bank had total brokered deposits of $1.0 billion and $882.6 million , respectively. The amount for brokered deposits includes reciprocal Certificate of Deposit Account Registry Service ® (“CDARS ® ”) and reciprocal Insured Cash Sweep ® (“ICS ® ”) accounts totaling $490.5 million and $419.1 million as of September 30, 2015 and December 31, 2014 , respectively. As of September 30, 2015 and December 31, 2014 , time deposits with balances of $100,000 or more, excluding brokered certificates of deposit, amounted to $422.9 million and $376.6 million , respectively. The contractual maturity of time deposits, including brokered deposits, is as follows: (Dollars in thousands) September 30, December 31, 12 months or less $ 655,872 $ 722,752 12 months to 24 months 204,473 111,865 24 months to 36 months 66,692 4,130 36 months to 48 months — — 48 months to 60 months — — Over 60 months — — Total $ 927,037 $ 838,747 Interest expense on deposits is as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2015 2014 2015 2014 Interest-bearing checking accounts $ 99 $ 86 $ 318 $ 119 Money market deposit accounts 1,523 1,125 4,079 3,080 Time deposits 1,652 1,543 4,945 4,672 Total interest expense on deposits $ 3,274 $ 2,754 $ 9,342 $ 7,871 |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS As of September 30, 2015 and December 31, 2014 , borrowings were comprised of the following: September 30, 2015 December 31, 2014 (Dollars in thousands) Interest Rate Ending Balance Maturity Date Interest Rate Ending Balance Maturity Date FHLB borrowings: Issued 9/30/2015 0.37 % $ 90,000 10/1/2015 $ — Issued 4/7/2014 — 0.34 % 25,000 4/7/2015 Issued 4/7/2014 — 0.38 % 25,000 6/8/2015 Issued 4/7/2014 — 0.44 % 25,000 9/8/2015 Issued 5/5/2014 — 0.33 % 25,000 2/5/2015 Issued 12/31/2014 — 0.27 % 30,000 1/2/2015 Issued 7/29/2015 0.61 % 25,000 8/4/2016 — Issued 7/29/2015 0.72 % 25,000 11/3/2016 — Subordinated notes payable 5.75 % 35,000 7/1/2019 5.75 % 35,000 7/1/2019 Total $ 175,000 $ 165,000 In June 2014, we completed a private placement of subordinated notes payable, raising $35.0 million . The subordinated notes have a term of 5 years at a fixed rate of 5.75% . The proceeds qualified as Tier 2 capital for the holding company, under federal regulatory capital rules. The Bank's FHLB borrowing capacity is based on the collateral value of certain securities held in safekeeping at the FHLB and loans pledged to the FHLB. The Bank submits a quarterly Qualified Collateral Report (“QCR”) to the FHLB to update the value of the loans pledged. As of September 30, 2015 , the Bank’s borrowing capacity is based on the information provided in the June 30, 2015 , QCR filing. As of September 30, 2015 , the Bank had securities held in safekeeping at the FHLB with a fair value of $6.7 million , combined with pledged loans of $671.3 million , for a remaining borrowing capacity of $336.1 million , which was net of $140.0 million outstanding in advances, as reflected in the table above. As of December 31, 2014 , there was $130.0 million outstanding in advances from the FHLB. When the Bank borrows from the FHLB, interest is charged at the FHLB's posted rates at the time of the borrowing. The Bank maintains an unsecured line of credit of $10.0 million with M&T Bank and an unsecured line of credit of $20.0 million with Texas Capital Bank. As of September 30, 2015 , the full amount of these established lines were available to the Bank. |
Regulatory Capital
Regulatory Capital | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY CAPITAL | REGULATORY CAPITAL The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the tables below) of Common Equity Tier 1 ("CET 1"), Tier 1 and Total risk-based capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). As of September 30, 2015 , TriState Capital Holdings, Inc. and TriState Capital Bank exceeded all capital adequacy requirements to which they are subject. Financial depository institutions are categorized as well capitalized if they meet minimum Total risk-based, Tier 1 risk-based, CET 1 risk-based and Tier 1 leverage ratios (Tier 1 capital to average assets) as set forth in the tables below. Based upon the information in the most recently filed Call Report, the Bank exceeded the capital ratios necessary to be well capitalized under the regulatory framework for prompt corrective action. There have been no conditions or events since the filing of the most recent Call Report that management believes have changed the Bank’s capital, as presented below. In December 2010, the Basel Committee released a final framework for a strengthened set of capital requirements, known as Basel III. In July 2013, final rules implementing the Basel III capital accord were adopted by the federal banking agencies. When fully phased in, Basel III, which began phasing in on January 1, 2015, will replace the existing regulatory capital rules for the Company and the Bank. The Basel III final rules required new minimum capital ratio standards, established a new common equity tier 1 to total risk-weighted assets ratio, subjected banking organizations to certain limitations on capital distributions and discretionary bonus payments and established a new standardized approach for risk weightings. The overall net impact of applying Basel III regulatory rules to the Company and the Bank was an increase to the risk-based capital ratios effective January 1, 2015. This increase resulted primarily from the reduced risk-weighted capital treatment for certain of the Bank's private banking channel non-purpose margin loans, which are over-collateralized by liquid and marketable securities that are priced and monitored daily. The following tables set forth certain information concerning the Company’s and the Bank’s regulatory capital as of September 30, 2015 and December 31, 2014 : September 30, 2015 Actual For Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total risk-based capital ratio Company $ 321,245 13.99 % $ 183,678 8.00 % N/A N/A Bank $ 305,968 13.48 % $ 181,542 8.00 % $ 226,927 10.00 % Tier 1 risk-based capital ratio Company $ 280,619 12.22 % $ 137,758 6.00 % N/A N/A Bank $ 286,250 12.61 % $ 136,156 6.00 % $ 181,542 8.00 % Common equity tier 1 risk-based capital ratio Company $ 280,619 12.22 % $ 103,319 4.50 % N/A N/A Bank $ 286,250 12.61 % $ 102,117 4.50 % $ 147,503 6.50 % Tier 1 leverage ratio Company $ 280,619 9.30 % $ 120,664 4.00 % N/A N/A Bank $ 286,250 9.58 % $ 119,566 4.00 % $ 149,457 5.00 % December 31, 2014 Actual For Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total risk-based capital ratio Company $ 302,217 11.02 % $ 219,458 8.00 % N/A N/A Bank $ 291,388 10.69 % $ 218,013 8.00 % $ 272,516 10.00 % Tier 1 risk-based capital ratio Company $ 253,389 9.24 % $ 109,729 4.00 % N/A N/A Bank $ 270,560 9.93 % $ 109,007 4.00 % $ 163,510 6.00 % Tier 1 leverage ratio Company $ 253,389 9.21 % $ 110,088 4.00 % N/A N/A Bank $ 270,560 9.88 % $ 109,498 4.00 % $ 136,872 5.00 % As part of its operating and financial strategies, the Company has not paid dividends to its holders of its common shares since its inception in 2007. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The Company participates in a qualified 401(k) defined contribution plan under which eligible employees may contribute a percentage of their salary, at their discretion. Beginning in 2011 and continuing through 2015 , the Company automatically contributed three percent of the employee’s base salary to the individual’s 401(k) plan, subject to IRS limitations. Full-time employees and certain part-time employees are eligible to participate upon the first month following their first day of employment or having attained age 21, whichever is later. The Company’s contribution expense was $175,000 and $168,000 for the three months ended September 30, 2015 and 2014 , respectively, including incidental administrative fees paid to a third party administrator of the plan. The Company’s contribution expense was $528,000 and $454,000 for the nine months ended September 30, 2015 and 2014 , respectively, including incidental administrative fees paid to a third party administrator of the plan. On February 28, 2013, the Company entered into a supplemental executive retirement plan (“SERP”) for the Chairman and Chief Executive Officer. The benefits will be earned over a five year period with the projected payments for this SERP of $25,000 per month for 180 months commencing the later of retirement or 60 months. For the three and nine months ended September 30, 2015 , the Company recorded expense related to SERP of $200,000 and $591,000 , respectively, utilizing a discount rate of 2.98% . For the three and nine months ended September 30, 2014 , the Company recorded expense related to SERP of $172,000 and $485,000 , respectively, utilizing a discount rate of 3.56% . The recorded liability related to the SERP plan was $1.9 million and $1.3 million as of September 30, 2015 and December 31, 2014 , respectively. |
Stock Transactions
Stock Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
STOCK TRANSACTIONS | STOCK TRANSACTIONS In October 2014, the Board of Directors authorized the repurchase of up to $10 million , or up to 1,000,000 shares, of the Company’s common stock through December 31, 2015. The Company repurchased a total of 678,891 shares for approximately $6.7 million during the year ended December 31, 2014, at an average cost of $9.94 per share. The Company repurchased a total of 321,109 shares for approximately $3.2 million during the nine months ended September 30, 2015 , at an average cost of $9.84 per share. In the aggregate, the Company repurchased 1,000,000 shares for approximately $9.9 million at an average cost of $9.90 per share and are held as treasury stock. The tables below show the changes in the common shares during the periods indicated. Number of Balance, December 31, 2013 28,690,279 Issuance of restricted common stock — Exercise of stock options 22,500 Purchase of treasury stock — Balance, September 30, 2014 28,712,779 Balance, December 31, 2014 28,060,888 Issuance of restricted common stock 255,916 Forfeitures of restricted common stock (3,000 ) Exercise of stock options 35,000 Purchase of treasury stock (321,109 ) Balance, September 30, 2015 28,027,695 |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The computation of basic and diluted earnings per common share for the periods presented is as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands, except per share data) 2015 2014 2015 2014 Net income available to common shareholders $ 6,118 $ 5,706 $ 16,902 $ 10,836 Basic shares 27,728,705 28,712,779 27,779,023 28,699,015 Non-vested restricted stock - dilutive 72,261 — 43,941 — Stock options - dilutive 480,278 292,372 384,695 439,518 Diluted shares 28,281,244 29,005,151 28,207,659 29,138,533 Earnings per common share: Basic $ 0.22 $ 0.20 $ 0.61 $ 0.38 Diluted $ 0.22 $ 0.20 $ 0.60 $ 0.37 Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Anti-dilutive shares (1) 635,893 798,732 961,393 716,732 (1) Included stock options and non-vested restricted stock not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive. |
Derivatives and Hedging Activit
Derivatives and Hedging Activity | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE AND HEDGING ACTIVITY | DERIVATIVES AND HEDGING ACTIVITY RISK MANAGEMENT OBJECTIVE OF USING DERIVATIVES 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 debt funding and through 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 uncertain 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 related to certain of the Company’s fixed-rate loan assets. The Company also has derivatives that are a result of a service the Company provides to certain qualifying customers while at the same time the Company enters into an offsetting derivative transaction in order to eliminate its interest rate risk exposure resulting from such transactions. FAIR VALUES OF DERIVATIVE INSTRUMENTS ON THE STATEMENTS OF FINANCIAL CONDITION The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated statements of financial condition as of September 30, 2015 and December 31, 2014 : Asset Derivatives Liability Derivatives as of September 30, 2015 as of September 30, 2015 (Dollars in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate products Other assets $ — Other liabilities $ 278 Derivatives not designated as hedging instruments: Interest rate products Other assets $ 11,730 Other liabilities $ 12,611 Asset Derivatives Liability Derivatives as of December 31, 2014 as of December 31, 2014 (Dollars in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate products Other assets $ — Other liabilities $ 442 Derivatives not designated as hedging instruments: Interest rate products Other assets $ 6,327 Other liabilities $ 6,849 FAIR VALUE HEDGES OF INTEREST RATE RISK The Company is exposed to changes in the fair value of certain of its fixed-rate obligations due to changes in benchmark interest rates, which relate predominantly to LIBOR. Interest rate swaps designated as fair value hedges involve the receipt of variable rate payments from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. As of September 30, 2015 , the Company had four interest rate swaps, with a notional amount of $3.3 million that were designated as fair value hedges of interest rate risk associated with the Company’s fixed-rate loan assets. The notional amounts for the derivatives express the face amount of the positions, however, credit risk was considered insignificant for nine months ended September 30, 2015 and 2014 . There were no counterparty default losses on derivatives for the nine months ended September 30, 2015 and 2014 . For the four derivatives that were designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in earnings by applying the “fair value long haul” method. The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related derivatives. During the three months ended September 30, 2015 , the Company recognized gains of $1,000 in non-interest income related to hedge ineffectiveness as compared to gains of $2,000 during the three months ended September 30, 2014 . The Company also recognized a decrease to interest income of $54,000 and $80,000 for the three months ended September 30, 2015 and 2014 , respectively, related to the Company’s fair value hedges, which includes net settlements on the derivatives, and any amortization adjustment of the basis in the hedged items. During the nine months ended September 30, 2015 , the Company recognized gains of $3,000 in non-interest income related to hedge ineffectiveness as compared to gains of $6,000 during the nine months ended September 30, 2014 . The Company also recognized a decrease to interest income of $211,000 and $247,000 for the nine months ended September 30, 2015 and 2014 , respectively, related to the Company’s fair value hedges, which includes net settlements on the derivatives, and any amortization adjustment of the basis in the hedged items. NON-DESIGNATED HEDGES The Company does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate derivatives with its commercial banking customers to facilitate their respective risk management strategies. Those derivatives are simultaneously and economically hedged by offsetting derivatives that the Company executes with a third party, such that the Company eliminates its interest rate exposure resulting from such transactions. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As of September 30, 2015 , the Company had 140 derivative transactions with an aggregate notional amount of $546.1 million related to this program. During the three months ended September 30, 2015 and 2014 , the Company recognized net losses of $414,000 and net gains of $19,000 , respectively, related to changes in fair value of the derivatives not designated in hedging relationships. During the nine months ended September 30, 2015 and 2014 , the Company recognized net losses of $371,000 and net losses of $195,000 , respectively, related to changes in fair value of the derivatives not designated in hedging relationships. EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENTS OF INCOME The tables below present the effect of the Company’s derivative financial instruments in the consolidated statements of income for the periods presented: Three Months Ended September 30, (Dollars in thousands) 2015 2014 Derivatives designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Interest income $ (54 ) $ (80 ) Non-interest income 1 2 Total $ (53 ) $ (78 ) Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Non-interest income $ (414 ) $ 19 Total $ (414 ) $ 19 Nine Months Ended September 30, (Dollars in thousands) 2015 2014 Derivatives designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Interest income $ (211 ) $ (247 ) Non-interest income 3 6 Total $ (208 ) $ (241 ) Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Non-interest income $ (371 ) $ (195 ) Total $ (371 ) $ (195 ) CREDIT-RISK-RELATED CONTINGENT FEATURES The Company has agreements with each of 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. The Company has agreements with certain of its derivative counterparties that contain a provision where, if either the Company or the counterparty fails to maintain its status as a well/adequately capitalized institution, then the Company or the counterparty could be required to terminate any outstanding derivative positions and settle its obligations under the agreement. As of September 30, 2015 , the termination value of derivatives, including accrued interest, in a net liability position related to these agreements was $12.8 million . As of September 30, 2015 , the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $10.9 million . If the Company had breached any of these provisions as of September 30, 2015 , it could have been required to settle its obligations under the agreements at their termination value. |
Disclosures About Fair Value of
Disclosures About Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value estimates of financial instruments are based on the present value of expected future cash flows, quoted market prices of similar financial instruments, if available, and other valuation techniques. These valuations are significantly affected by discount rates, cash flow assumptions, and risk assumptions used. Therefore, fair value estimates may not be substantiated by comparison to independent markets and are not intended to reflect the proceeds that may be realized in an immediate settlement of instruments. Accordingly, the aggregate fair value amounts presented below do not represent the underlying value of the Company. FAIR VALUE MEASUREMENTS In accordance with U.S. GAAP the Company must account for certain financial assets and liabilities at fair value on a recurring and non-recurring basis. The Company utilizes a three-level fair value hierarchy of valuation techniques to estimate the fair value of its financial assets and liabilities based on whether the inputs to those valuation techniques are observable or unobservable. The fair value hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3). When various inputs for measurement fall within multiple levels of the fair value hierarchy, the lowest level input that has a significant impact on fair value measurement is used. Financial assets and liabilities are categorized based upon the following characteristics or inputs to the valuation techniques: • Level 1 – Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in actively traded markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities. • Level 2 – Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets or liabilities that are actively traded. Level 2 also includes pricing models in which the inputs are corroborated by market data, for example, matrix pricing. • Level 3 – Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 inputs include assumptions of a source independent of the reporting entity or the reporting entity’s own assumptions that are supported by little or no market activity or observable inputs. The Company is responsible for the valuation process and as part of this process may use data from outside sources in establishing fair value. The Company performs due diligence to understand the inputs used or how the data was calculated or derived. The Company corroborates the reasonableness of external inputs in the valuation process. RECURRING FAIR VALUE MEASUREMENTS The following tables represent assets and liabilities measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 : September 30, 2015 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets / Financial assets: Investment securities available-for-sale: Corporate bonds $ — $ 46,103 $ — $ 46,103 Trust preferred securities — 16,657 — 16,657 Non-agency mortgage-backed securities — 6,222 — 6,222 Non-agency collateralized loan obligations — 11,894 — 11,894 Agency collateralized mortgage obligations — 51,360 — 51,360 Agency mortgage-backed securities — 28,763 — 28,763 Agency debentures — 4,722 — 4,722 Equity securities 7,864 — — 7,864 Interest rate swaps — 11,730 — 11,730 Total financial assets 7,864 177,451 — 185,315 Financial liabilities: Interest rate swaps — 12,889 — 12,889 Total financial liabilities $ — $ 12,889 $ — $ 12,889 December 31, 2014 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets / Financial assets: Investment securities available-for-sale: Corporate bonds $ — $ 31,668 $ — $ 31,668 Trust preferred securities — 16,801 — 16,801 Non-agency mortgage-backed securities — 11,585 — 11,585 Agency collateralized mortgage obligations — 56,863 — 56,863 Agency mortgage-backed securities — 32,880 — 32,880 Agency debentures — 8,737 — 8,737 Equity securities 8,038 — — 8,038 Interest rate swaps — 6,327 — 6,327 Total financial assets 8,038 164,861 — 172,899 Financial liabilities: Interest rate swaps — 7,291 — 7,291 Total financial liabilities $ — $ 7,291 $ — $ 7,291 INVESTMENT SECURITIES Generally, investment securities are valued using pricing for similar securities, recently executed transactions, and other pricing models utilizing observable inputs. The valuations for debt and equity securities are classified as either Level 1 or Level 2. U.S. Treasury Notes and equity securities (including mutual funds) are classified as Level 1 because these securities are in actively traded markets. Investment securities within Level 2 include corporate bonds, single-issuer trust preferred securities, municipal bonds, non-agency mortgage-backed securities and collateralized loan obligations, collateralized mortgage obligations and mortgage-backed securities issued by U.S. government agencies and U.S. government agency debentures. INTEREST RATE SWAPS The fair value is estimated using inputs that are observable or that can be corroborated by observable market data and, therefore, are classified as Level 2. These fair value estimations include primarily market observable inputs such as the forward LIBOR swap curve. NON-RECURRING FAIR VALUE MEASUREMENTS Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following tables represent the balances of assets measured at fair value on a non-recurring basis as of September 30, 2015 and December 31, 2014 : September 30, 2015 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Loans measured for impairment, net $ — $ — $ 13,479 $ 13,479 Other real estate owned — — 1,766 1,766 Total assets $ — $ — $ 15,245 $ 15,245 December 31, 2014 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Loans measured for impairment, net $ — $ — $ 25,177 $ 25,177 Other real estate owned — — 1,370 1,370 Total assets $ — $ — $ 26,547 $ 26,547 As of September 30, 2015 , the Company recorded $6.2 million of specific reserves to the allowance for loan losses as a result of adjusting the fair value of the collateral for certain collateral dependent impaired loans to $4.7 million , and as a result of adjusting the value based upon the discounted cash flow to $8.8 million as of September 30, 2015 . As of December 31, 2014 , the Company recorded $5.6 million of specific reserves to allowance for loan losses as a result of adjusting the fair value of the collateral for certain collateral dependent impaired loans to $7.6 million , and as a result of adjusting the value based upon the discounted cash flow to $17.6 million as of December 31, 2014 . The Company obtains updated appraisals for collateral dependent impaired loans and other real estate owned on an annual basis, unless circumstances require a more frequent appraisal. IMPAIRED LOANS A loan is considered impaired when management determines it is probable that all of the principal and interest due under the original terms of the loan may not be collected or if a loan is designated as a TDR. Impairment is measured based on a discounted cash flows method or the fair value of the underlying collateral less estimated selling costs. Our policy is to obtain appraisals on collateral supporting impaired loans on an annual basis, unless circumstances dictate a shorter time frame. Appraisals are reduced by estimated costs to sell the collateral, and, under certain circumstances, additional factors that may arise and which may cause us to believe our recovered value may be less than the independent appraised value. Accordingly, impaired loans are classified as Level 3. The Company measures impairment on all loans for which it has established specific reserves as part of the allowance for loan losses. OTHER REAL ESTATE OWNED Real estate owned is comprised of property acquired through foreclosure or voluntarily conveyed by borrowers. These assets are recorded on the date acquired at the lower of the related loan balance or fair value, less estimated disposition costs, with the fair value being determined by appraisal. Our policy is to obtain appraisals on collateral supporting OREO on an annual basis, unless circumstances dictate a shorter time frame. Appraisals are reduced by estimated costs to sell the collateral, and, under certain circumstances, additional factors that may arise and which may cause us to believe our recovered value may be less than the independent appraised value. Accordingly, real estate owned is classified as Level 3. LEVEL 3 VALUATION The following tables present additional quantitative information about assets measured at fair value on a recurring and non-recurring basis and for which we have utilized Level 3 inputs to determine fair value as of September 30, 2015 and December 31, 2014 : September 30, 2015 (Dollars in thousands) Fair Value Valuation Techniques (1) Significant Unobservable Inputs Weighted Average Loans measured for impairment, net $ 4,695 Appraisal value Discount due — % Loans measured for impairment, net $ 8,784 Discounted cash flow Discount due to restructured nature of operations 10 % Other real estate owned $ 1,766 Appraisal value Discount due 10 % (1) Fair value is generally determined through independent appraisals of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent. December 31, 2014 (Dollars in thousands) Fair Value Valuation Techniques (1) Significant Unobservable Inputs Weighted Average Loans measured for impairment, net $ 7,559 Appraisal value or Discount due 10 % Loans measured for impairment, net $ 17,618 Discounted cash flow Discount due to restructured nature of operations 10 % Other real estate owned $ 1,370 Appraisal value Discount due 10 % (1) Fair value is generally determined through independent appraisals or market multiple of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent. FAIR VALUE OF FINANCIAL INSTRUMENTS A summary of the carrying amounts and estimated fair values of financial instruments is as follows: September 30, 2015 December 31, 2014 (Dollars in thousands) Fair Value Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents 1 $ 100,424 $ 100,424 $ 105,710 $ 105,710 Investment securities available-for-sale: debt 2 165,721 165,721 158,534 158,534 Investment securities available-for-sale: equity 1 7,864 7,864 8,038 8,038 Investment securities held-to-maturity 2 46,427 47,261 39,591 40,113 Loans held-for-investment, net 3 2,641,841 2,641,658 2,379,779 2,376,075 Accrued interest receivable 2 6,693 6,693 6,279 6,279 Investment management fees receivable 2 6,294 6,294 6,818 6,818 Federal Home Loan Bank stock 2 8,002 8,002 5,730 5,730 Bank owned life insurance 2 59,575 59,575 53,323 53,323 Interest rate swaps 2 11,730 11,730 6,327 6,327 Other real estate owned 3 1,766 1,766 1,370 1,370 Financial liabilities: Deposits 2 $ 2,600,508 $ 2,601,190 $ 2,336,953 $ 2,337,734 Borrowings 2 175,000 175,738 165,000 165,163 Interest rate swaps 2 12,889 12,889 7,291 7,291 During the nine months ended September 30, 2015 and 2014 , there were no transfers between fair value Levels 1, 2 or 3. The following methods and assumptions were used to estimate the fair value of each class of financial instruments as of September 30, 2015 and December 31, 2014 : CASH AND CASH EQUIVALENTS The carrying amount approximates fair value. INVESTMENT SECURITIES The fair values of investment securities available-for-sale, held-to-maturity and trading are based on quoted market prices for the same or similar securities, recently executed transactions and pricing models . LOANS HELD-FOR-INVESTMENT The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Fair value as determined here does not represent an exit price. Impaired loans are generally valued at the fair value of the associated collateral. ACCRUED INTEREST RECEIVABLE The carrying amount approximates fair value. INVESTMENT MANAGEMENT FEES RECEIVABLE The carrying amount approximates fair value. FEDERAL HOME LOAN BANK STOCK The carrying value of our FHLB stock, which is a marketable equity investment, approximates fair value. BANK OWNED LIFE INSURANCE The fair value of the general account bank owned life insurance is based on the insurance contract net cash surrender value. OTHER REAL ESTATE OWNED Real estate owned is recorded on the date acquired at the lower of the related loan balance or fair value, less estimated disposition costs, with the fair value being determined by appraisal. DEPOSITS The fair value of demand deposits is the amount payable on demand as of the reporting date, i.e., their carrying amounts. The fair value of fixed maturity certificates of deposit is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. BORROWINGS The fair value of our borrowings is calculated by discounting scheduled cash flows through the estimated maturity using period end market rates for borrowings of similar remaining maturities. INTEREST RATE SWAPS The fair value of interest rate swaps are estimated through the assistance of an independent third party and compared to the fair value determined by the swap counterparty to establish reasonableness. OFF-BALANCE SHEET INSTRUMENTS Fair values for the Company’s off-balance sheet instruments, which consist of lending commitments, standby letters of credit and risk participation agreements related to interest rate swap agreements, are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. Management believes that the fair value of these off-balance sheet instruments is not significant. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables show the changes in accumulated other comprehensive income (loss), for the periods presented: Three Months Ended September 30, 2015 2014 (Dollars in thousands) Unrealized Gains Unrealized Gains Balance, beginning of period $ (215 ) $ (525 ) Change in unrealized holding gains (losses) (698 ) 446 Gains reclassified from other comprehensive income (loss) — — Net other comprehensive income (loss) (698 ) 446 Balance, end of period $ (913 ) $ (79 ) Nine Months Ended September 30, 2015 2014 (Dollars in thousands) Unrealized Gains Unrealized Gains Balance, beginning of period $ (627 ) $ (1,744 ) Change in unrealized holding gains (losses) (275 ) 2,582 Gains reclassified from other comprehensive income (loss) (1) (11 ) (917 ) Net other comprehensive income (loss) (286 ) 1,665 Balance, end of period $ (913 ) $ (79 ) (1) Consists of net realized gains on sales of investment securities available-for-sale of $17,000 and $1.4 million , net of income tax expense of $6,000 and $511,000 for the nine months ended September 30, 2015 and 2014 , respectively. |
Contingent Liabilities
Contingent Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES | CONTINGENT LIABILITIES The Company is not subject to any asserted claims nor is it aware of any unasserted claims. In the opinion of management, there are no potential claims that would have a material adverse effect on the Company’s financial position, liquidity or results of operations. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
SEGMENTS | SEGMENTS Since the Chartwell acquisition on March 5, 2014, the Company operates two reportable segments: Bank and Investment Management. • The Bank segment provides commercial banking and private banking services to middle-market businesses and high-net-worth individuals through the TriState Capital Bank subsidiary. • The Investment Management segment provides advisory and sub-advisory investment management services to primarily institutional plan sponsors through the Chartwell Investment Partners, LLC subsidiary and also provides distribution and marketing efforts for Chartwell's proprietary investment products through the Chartwell TSC Securities Corp. subsidiary. The following tables provide financial information for the two segments of the Company as of and for the periods indicated. The information provided under the caption "Parent and Other" represents operations not considered to be reportable segments and/or general operating expenses of the Company, which includes the parent company activity as well as eliminations and adjustments which are necessary for purposes of reconciliation to the consolidated amounts. (Dollars in thousands) September 30, December 31, Assets: (unaudited) Bank $ 3,063,196 $ 2,776,421 Investment management 65,385 62,489 Parent and other 1,666 7,947 Total assets $ 3,130,247 $ 2,846,857 Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 (Dollars in thousands) Bank Investment Parent Consolidated Bank Investment Parent Consolidated Income statement data: (unaudited) (unaudited) Interest income $ 20,883 $ — $ 57 $ 20,940 $ 19,635 $ — $ 46 $ 19,681 Interest expense 3,430 — 554 3,984 2,918 — 517 3,435 Net interest income (loss) 17,453 — (497 ) 16,956 16,717 — (471 ) 16,246 Provision (credit) for loan losses (1,341 ) — — (1,341 ) 651 — — 651 Net interest income (loss) after provision (credit) for loan losses 18,794 — (497 ) 18,297 16,066 — (471 ) 15,595 Non-interest income: Investment management fees — 7,074 (54 ) 7,020 — 7,470 (52 ) 7,418 Net gain on the sale of investment securities available-for-sale — — — — — — — — Other non-interest income 1,051 (7 ) — 1,044 1,875 (3 ) — 1,872 Total non-interest income 1,051 7,067 (54 ) 8,064 1,875 7,467 (52 ) 9,290 Non-interest expense: Intangible amortization expense — 390 — 390 — 389 — 389 Other non-interest expense 12,015 4,936 (40 ) 16,911 10,847 5,469 (32 ) 16,284 Total non-interest expense 12,015 5,326 (40 ) 17,301 10,847 5,858 (32 ) 16,673 Income (loss) before tax 7,830 1,741 (511 ) 9,060 7,094 1,609 (491 ) 8,212 Income tax expense (benefit) 2,442 660 (160 ) 2,942 1,971 673 (138 ) 2,506 Net income (loss) $ 5,388 $ 1,081 $ (351 ) $ 6,118 $ 5,123 $ 936 $ (353 ) $ 5,706 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 (Dollars in thousands) Bank Investment Parent Consolidated Bank Investment Parent Consolidated Income statement data: (unaudited) (unaudited) Interest income $ 61,198 $ — $ 163 $ 61,361 $ 56,934 $ — $ 46 $ 56,980 Interest expense 9,689 — 1,642 11,331 8,245 — 589 8,834 Net interest income (loss) 51,509 — (1,479 ) 50,030 48,689 — (543 ) 48,146 Provision (credit) for loan losses (231 ) — — (231 ) 10,368 — — 10,368 Net interest income (loss) after provision (credit) for loan losses 51,740 — (1,479 ) 50,261 38,321 — (543 ) 37,778 Non-interest income: Investment management fees — 22,332 (143 ) 22,189 — 17,484 (103 ) 17,381 Net gain on the sale of investment securities available-for-sale 17 — — 17 1,428 — — 1,428 Other non-interest income 4,553 (6 ) — 4,547 4,044 38 — 4,082 Total non-interest income 4,570 22,326 (143 ) 26,753 5,472 17,522 (103 ) 22,891 Non-interest expense: Intangible amortization expense — 1,169 — 1,169 — 909 — 909 Other non-interest expense 34,958 15,931 (73 ) 50,816 31,547 12,505 (12 ) 44,040 Total non-interest expense 34,958 17,100 (73 ) 51,985 31,547 13,414 (12 ) 44,949 Income (loss) before tax 21,352 5,226 (1,549 ) 25,029 12,246 4,108 (634 ) 15,720 Income tax expense (benefit) 6,630 1,981 (484 ) 8,127 3,336 1,726 (178 ) 4,884 Net income (loss) $ 14,722 $ 3,245 $ (1,065 ) $ 16,902 $ 8,910 $ 2,382 $ (456 ) $ 10,836 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States of America requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of related revenue and expense during the reporting period. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual conditions could be worse than those anticipated in the estimates, which could materially affect the financial results of our operations and financial condition. The material estimates that are particularly susceptible to significant changes relate to the determination of the allowance for loan losses, evaluation of goodwill and other intangible assets for impairment, and deferred income taxes and its related recoverability, which are discussed later in this section. |
Consolidation | CONSOLIDATION The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, the Bank, Chartwell (since the acquisition on March 5, 2014) and CTSC Securities (since its initial capitalization in May 2014), after elimination of inter-company accounts and transactions. The accounts of the Bank, in turn, include its wholly-owned subsidiary, Meadowood Asset Management, LLC, after elimination of inter-company accounts and transactions. The unaudited consolidated financial statements of the Company presented herein have been prepared pursuant to rules of the Securities and Exchange Commission for quarterly reports on form 10-Q and do not include all of the information and note disclosures required by GAAP for a full year presentation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures, considered necessary for the fair presentation of the accompanying consolidated financial statements, have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2014 , included in the Company's Annual Report on Form 10-K. |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS For purposes of reporting cash flows, the Company has defined cash and cash equivalents as cash, interest-earning deposits with other institutions, federal funds sold, and short-term investments which have an original maturity of 90 days or less. |
Investment Securities | INVESTMENT SECURITIES The Company’s investments are classified as either: (1) held-to-maturity – debt securities that the Company intends to hold until maturity and are reported at amortized cost; (2) trading securities – debt and certain equity securities bought and held principally for the purpose of selling them in the near term and reported at fair value, with unrealized gains and losses included in earnings; or (3) available-for-sale – debt and certain equity securities not classified as either held-to-maturity or trading securities and reported at fair value, with changes in fair value reported as a component of accumulated other comprehensive income (loss). The cost of securities sold is determined on a specific identification basis. Amortization of premiums and accretion of discounts are recorded as interest income from investments over the life of the security utilizing the level yield method. We evaluate impaired investment securities quarterly to determine if impairments are temporary or other-than-temporary. For impaired debt securities, management first determines whether it intends to sell or if it is more-likely than not that it will be required to sell the impaired securities. This determination considers current and forecasted liquidity requirements, regulatory and capital requirements and securities portfolio management. If the Company intends to sell a security with a fair value below amortized cost or if it is more-likely than not that it will be required to sell such a security before recovery, an other-than-temporary impairment (“OTTI”) charge is recorded through current period earnings for the full decline in fair value below amortized cost. For debt securities that the Company does not intend to sell or it is more likely than not that it will not be required to sell before recovery, an OTTI charge is recorded through current period earnings for the amount of the valuation decline below amortized cost that is attributable to credit losses. The remaining difference between the debt security’s fair value and amortized cost (that is, the decline in fair value not attributable to credit losses) is recognized in other comprehensive income (loss), in the consolidated statements of comprehensive income as well as the shareholders’ equity section of the consolidated statements of financial condition, on an after-tax basis. |
Loans | LOANS Loans and leases held-for investment are stated at unpaid principal balances, net of deferred loan fees and costs. Loans held-for-sale are stated at the lower of cost or fair value. Interest income on loans is accrued at the contractual rate on the principal amount outstanding and includes the amortization of deferred loan fees and costs. Deferred loan fees and costs are amortized to interest income over the life of the loan, taking into consideration scheduled payments and prepayments. The Company considers a loan to be a Troubled Debt Restructuring (“TDR”) when there is a concession made to a financially troubled borrower without adequate consideration provided to the Company. Once a loan is deemed to be a TDR, the Company considers whether the loan should be placed in non-accrual status. In assessing accrual status, the Company considers the likelihood that repayment and performance according to modified terms will be achieved, as well as the borrower’s historical payment performance. A loan is designated and reported as TDR until such loan is either paid-off or sold, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the remaining principal and interest will be collected according to the restructured agreement. The recognition of interest income on a loan is discontinued when, in management's opinion, it is probable the borrower is unable to meet payments as they become due or when the loan becomes 90 days past due, whichever occurs first. All unpaid accrued interest on such loans is reversed. Such interest ultimately collected is applied to reduce principal if there is doubt about the collectability of principal. If a borrower brings a loan current for which accrued interest has been reversed, then the recognition of interest income on the loan is resumed, once the loan has been current for a period of six consecutive months or greater. The Company is a party to financial instruments with off-balance sheet risk (commitments to extend credit) in the normal course of business to meet the financing needs of its customers. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the commitment. Commitments generally have fixed expiration dates or other termination clauses (i.e. demand loans) and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the unfunded commitment amount does not necessarily represent future cash requirements. The Company evaluates each customer's credit worthiness on a case-by-case basis using the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained, if deemed necessary by the Company upon extension of a commitment, is based on management's credit evaluation of the borrower. |
Other Real Estate Owned | OTHER REAL ESTATE OWNED Real estate, other than bank premises, is recorded at the lower of the related loan balance or fair value less estimated selling costs at the time of acquisition. Fair value is determined based on an independent appraisal. Expenses related to holding the property are charged against earnings in the current period. Depreciation is not recorded on the other real estate owned (“OREO”) properties. |
Allowance for Loan Losses | ALLOWANCE FOR LOAN LOSSES The allowance for loan losses is established through provisions for loan losses that are charged to operations. Loans are charged against the allowance for loan losses when management believes that the principal is uncollectible. If, at a later time, amounts are recovered with respect to loans previously charged off, the recovered amount is credited to the allowance for loan losses. The allowance is appropriate, in management's judgment, to cover probable losses inherent in the loan portfolio as of September 30, 2015 and December 31, 2014 . Management’s judgment takes into consideration general economic conditions, diversification and seasoning of the loan portfolio, historic loss experience, identified credit problems, delinquency levels and adequacy of collateral. Although management believes it has used the best information available to it in making such determinations, and that the present allowance for loan losses is adequate, future adjustments to the allowance may be necessary, and net income may be adversely affected if circumstances differ substantially from the assumptions used in determining the level of the allowance. In addition, as an integral part of their periodic examination, certain regulatory agencies review the adequacy of the Bank’s allowance for loan losses and may direct the Bank to make additions to the allowance based on their judgments about information available to them at the time of their examination. The components of the allowance for loan losses represent estimates based upon Accounting Standards Codification (“ASC”) Topic 450, Contingencies, and ASC Topic 310, Receivables . ASC Topic 450 applies to homogeneous loan pools such as consumer installment, residential mortgages, consumer lines of credit and commercial loans that are not individually evaluated for impairment under ASC Topic 310. ASC Topic 310 is applied to commercial and consumer loans that are individually evaluated for impairment. Under ASC Topic 310, a loan is impaired, based upon current information and events, in management's opinion, when it is probable that the loan will not be repaid according to its original contractual terms, including both principal and interest, or if a loan is designated as a TDR. Management performs individual assessments of impaired loans to determine the existence of loss exposure based upon a discounted cash flows method or where a loan is collateral dependent, based upon the fair value of the collateral less estimated selling costs. In estimating probable loan loss under ASC Topic 450 management considers numerous factors, including historical charge-offs and subsequent recoveries. Management also considers, but is not limited to, qualitative factors that influence our credit quality, such as delinquency and non-performing loan trends, changes in loan underwriting guidelines and credit policies, as well as the results of internal loan reviews. Finally, management considers the impact of changes in current local and regional economic conditions in the markets that we serve. Assessment of relevant economic factors indicates that some of the Company’s primary markets historically tend to lag the national economy, with local economies in our primary market areas also improving or weakening, as the case may be, but at a more measured rate than the national trends. Management bases the computation of the allowance for loan losses under ASC Topic 450 on two factors: the primary factor and the secondary factor. The primary factor is based on the inherent risk identified by management within each of the Company's three loan portfolios based on the historical loss experience of each loan portfolio and the loss emergence period. Management has developed a methodology that is applied to each of the three primary loan portfolios, consisting of commercial and industrial, commercial real estate and private banking. As the loan loss history, mix and risk ratings of each loan portfolio change, the primary factor adjusts accordingly. The allowance for loan losses related to the primary factor is based on our estimates as to probable losses for each loan portfolio. The secondary factor is intended to capture risks related to events and circumstances that management believes may impact the performance of the loan portfolio. Although this factor is more subjective in nature, the methodology focuses on internal and external trends in pre-specified categories (risk factors) and applies a quantitative percentage which drives the secondary factor. There are nine risk factors and each risk factor is assigned a reserve level, based on management's judgment as to the probable impact of each risk factor on each loan portfolio and is monitored on a quarterly basis. As the trend in any risk factor changes, a corresponding change occurs in the reserve associated with each respective risk factor, such that the secondary factor remains current to changes in each loan portfolio. The Company also maintains a reserve for losses on unfunded commitments. This reserve is reflected as a component of other liabilities and, in management’s judgment, is sufficient to cover probable losses inherent in the commitments. Management tracks the level and trends in unused commitments and takes into consideration the same factors as those considered for purposes of the allowance for loan losses on outstanding loans. |
Investment Management Fees | INVESTMENT MANAGEMENT FEES The Company recognizes investment management fee revenue when the advisory services are performed. Fees are based on assets under management and are calculated pursuant to individual client contracts. Investment management fees are generally paid on a quarterly basis. In a limited number of cases, the Company may earn a performance fee based on investment performance achieved versus a stated benchmark. Performance fees are included in investment management fee revenue in the consolidated statements of income. Investment management fees receivable represent amounts due for contractual investment management services provided to the Company’s clients, primarily institutional investors, mutual funds and individual investors. Management performs credit evaluations of its customers’ financial condition when it is deemed to be necessary, and does not require collateral. The Company provides an allowance for uncollectible accounts based on specifically identified receivables. Investment management fees receivable are considered delinquent when payment is not received within contractual terms and are charged off against the allowance for uncollectible accounts when management determines that recovery is unlikely and the Company ceases its collection efforts. There was no bad debt expense recorded for the nine months ended September 30, 2015 and 2014 , and there was no allowance for uncollectible accounts recorded as of September 30, 2015 and December 31, 2014 . |
Federal Home Loan Bank Stock | FEDERAL HOME LOAN BANK STOCK The Company is a member of the Federal Home Loan Bank of Pittsburgh (“FHLB”). Member institutions are required to invest in FHLB stock. The stock is carried at cost, which approximates its liquidation value, and it is evaluated for impairment based on the ultimate recoverability of the par value. The following matters are considered by management when evaluating the FHLB stock for impairment: the ability of the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; the impact of legislative and regulatory changes on the institution and its customer base; and the Company's intent and ability to hold its FHLB stock for the foreseeable future. Management believes the Company's holdings in the FHLB stock are ultimately recoverable at par value, as of September 30, 2015 . Cash and stock dividends are reported as non-interest income, in the consolidated statements of income. |
Business Combinations | BUSINESS COMBINATIONS The Company accounts for business combinations using the acquisition method of accounting. Under this method of accounting, the acquired company’s net assets are recorded at fair value as of the date of acquisition, and the results of operations of the acquired company are combined with our results from that date forward. Acquisition costs are expensed when incurred. The difference between the purchase price and the fair value of the net assets acquired (including identified intangibles) is recorded as goodwill. The change in the initial estimate of any contingent earnout amounts is reflected in the consolidated statements of income. |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Other intangible assets that have finite lives, such as trade name, client relationships and non-compete agreements are amortized over their estimated useful lives and subject to periodic impairment testing. These other intangible assets are amortized on a straight-line basis over their estimated useful lives which range from four to twenty years . Goodwill and other intangible assets are subject to impairment testing at the reporting unit level, which is conducted at least annually. |
Office Properties and Equipment | OFFICE PROPERTIES AND EQUIPMENT Office properties and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the related assets, except for leasehold improvements which are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Estimated useful lives are dependent upon the nature and condition of the asset and range from three to ten years . Repairs and maintenance are charged to expense as incurred, while improvements which extend the useful life are capitalized and depreciated to operating expense over the estimated remaining life of the asset. When the Bank receives an allowance for improvements to be made to one of its leased offices, we record the allowance as a deferred liability and recognize it as a reduction to rent expense over the life of the related lease. |
Bank Owned Life Insurance | BANK OWNED LIFE INSURANCE Bank owned life insurance (“BOLI”) policies on certain officers and employees are recorded at net cash surrender value on the consolidated statements of financial condition. Upon termination of the BOLI policy the Company receives the cash surrender value. BOLI benefits are payable to the Company upon death of the insured. Changes in net cash surrender value are recognized as non-interest income in the consolidated statements of income. |
Deposits | DEPOSITS Deposits are stated at principal outstanding and interest on deposits is accrued and charged to expense daily and is paid or credited in accordance with the terms of the respective accounts. |
Borrowings | BORROWINGS The Company records FHLB advances and subordinated notes payable at their principal amount. Interest expense is recognized based on the coupon rate of the obligations. Costs associated with the acquisition of subordinated notes payable are amortized over the expected term of the borrowing. |
Earnings Per Share | EARNINGS PER COMMON SHARE Basic earnings per common share ("EPS") is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution of upon the exercise of stock options and vesting of restricted stock awards granted utilizing the treasury stock method. |
Income Taxes | INCOME TAXES The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities with regard to a change in tax rates is recognized in income in the period that includes the enactment date. Management assesses all available evidence to determine the amount of deferred tax assets that are more-likely-than-not to be realized. The available evidence used in connection with the assessments includes taxable income in prior periods, projected taxable income, potential tax planning strategies and projected reversals of deferred tax items. These assessments involve a degree of subjectivity and may undergo significant change. Changes to the evidence used in the assessments could have a material adverse effect on the Company’s results of operations in the period in which they occur. It is the Company’s policy to recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense in the consolidated statements of income. |
Fair Value Measurement | FAIR VALUE MEASUREMENT Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in a principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date, using assumptions market participants would use when pricing an asset or liability. An orderly transaction assumes exposure to the market for a customary period for marketing activities prior to the measurement date and not a forced liquidation or distressed sale. Fair value measurement and disclosure guidance provides a three-level hierarchy that prioritizes the inputs of valuation techniques used to measure fair value into three broad categories: • Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 – Observable inputs such as quoted prices for similar assets and liabilities in active markets, quoted prices for similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs. Fair value may be recorded for certain assets and liabilities every reporting period on a recurring basis or under certain circumstances, on a non-recurring basis. |
Stock-based Compensation | STOCK-BASED COMPENSATION The Company accounts for its stock-based compensation awards based on estimated fair values, for all share-based awards, including stock options and restricted stock, made to employees and directors. The Company accounts for stock-based employee compensation in accordance with the fair value recognition provisions of ASC 718, Compensation – Stock Compensation . As a result, compensation cost for all share-based payments is based on the grant-date fair value estimated in accordance with ASC 718. The value of the portion of the award that is ultimately expected to vest is included in stock-based employee compensation cost in the consolidated statements of income and recorded as a component of additional paid-in capital, for equity-based awards. Compensation expense for all awards is recognized on a straight-line basis over the requisite service period for the entire grant. |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Unrealized holding gains and the non-credit component of losses on the Company’s investment securities available-for-sale are included in accumulated other comprehensive income (loss), net of applicable income taxes. Also included in accumulated other comprehensive income (loss) is the remaining unamortized balance of the unrealized holding gains (non-credit losses), net of applicable income taxes, that existed on the transfer date for investment securities reclassified into the held-to-maturity category from the available-for-sale category. |
Treasury Stock | TREASURY STOCK The repurchase of the Company's common stock is recorded at cost. At the time of reissuance, the treasury stock account is reduced using the average cost method. Gains and losses on the reissuance of common stock are recorded in additional paid-in capital, to the extent additional paid-in capital from any previous net gains on treasury share transactions exists. Any net deficiency is charged to retained earnings. |
Recent Accounting Developments | RECENT ACCOUNTING DEVELOPMENTS In September 2015, the FASB issued Accounting Standards Update ("ASU") 2015-16, " Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments." This ASU will eliminate the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. The ASU is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. For all other entities, the ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted. The adoption of ASU 2015-16 is not expected to have a material impact on the Company’s consolidated financial statements. In June 2015, the FASB issued ASU 2015-10, " Technical Correction and Improvements" which, among other things, corrects the initial codification of FASB Statement No. 140, " Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (as Amended by FASB Statement No. 166, Accounting for Transfers of Financial Assets) ." The initial codification inadvertently added the word “public” to paragraph 860-10-50-7, which was not in the original guidance. The ASU also clarifies that the requirement relates to “involvement by others”. This amendment in ASU 2015-10 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The adoption of ASU 2015-10 is not expected to have a material impact on the Company’s consolidated financial statements. In May 2015, the FASB issued ASU 2015-07, " Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). " This ASU will eliminate the requirement to categorize investments in the fair value hierarchy if their fair value is measured at net asset value (NAV) per share (or its equivalent) using the practical expedient in the FASB’s fair value measurement guidance. Reporting entities are required to adopt the ASU retrospectively. The effective date for public business entities is fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for all entities. The adoption of ASU 2015-07 is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." This ASU provides explicit guidance to help companies evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. This ASU is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. An entity can elect to adopt the amendments either prospectively for all arrangements entered into or materially modified after the effective date, or retrospectively. Early adoption is permitted for all entities. The adoption of ASU 2015-05 is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." This AUS requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. For public business entities, the amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted for financial statements that have not been previously issued. An entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. These disclosures include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (that is, debt issuance cost asset and the debt liability). The adoption of ASU 2015-03 is not expected to have a material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." This ASU changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (VIE), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. The new guidance excludes money market funds that are required to comply with Rule 2a-7 of the Investment Company Act of 1940 and similar entities from the U.S. GAAP consolidation requirements. The new consolidation guidance is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2015. At the effective date, all previous consolidation analyses that the guidance affects must be reconsidered. This includes the consolidation analyses for all VIEs and for all limited partnerships and similar entities that previously were consolidated by the general partner even though the entities were not VIEs. Early adoption is permitted, including early adoption in an interim period. If a reporting enterprise chooses to early adopt in an interim period, adjustments resulting from the revised consolidation analyses must be reflected as of the beginning of the fiscal year that includes that interim period. The adoption of ASU 2015-02 is not expected to have a material impact on the Company’s consolidated financial statements. In January 2015, the FASB issued ASU No. 2015-01, "Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items." This ASU eliminates the concept of extraordinary items from U.S. GAAP as part of its simplification initiative. The ASU does not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence. The ASU is effective for interim and annual periods in fiscal years beginning after December 15, 2015. The ASU allows prospective or retrospective application. Early adoption is permitted if applied from the beginning of the fiscal year of adoption. The effective date is the same for both public entities and all other entities. The adoption of ASU 2015-01 is not expected to have a material impact on the Company’s consolidated financial statements. In November 2014, the FASB issued ASU 2014-16, "Derivatives and Hedging (Topic 815)," which will require an entity to determine the nature of the host contract by considering the economic characteristics and risks of the entire hybrid financial instrument issued in the form of a share, including the embedded derivative feature that is being evaluated for separate accounting from the host contract when evaluating whether the host contract is more akin to debt or equity. In evaluating the stated and implied substantive terms and features, the existence or omission of any single term or feature does not necessarily determine the economic characteristics and risks of the host contract. Although an individual term or feature may weigh more heavily in the evaluation on the basis of facts and circumstances, an entity should use judgment based on an evaluation of all the relevant terms and features. This update is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The effects of initially adopting the amendments should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year for which the amendment is effective. Retrospective application is permitted to all relevant prior periods. Early adoption, including adoption in an interim period, is permitted. If an entity early adopts the amendments in an interim period, any adjustments shall be reflected as of the beginning of the fiscal year that includes that interim period. The adoption of ASU 2014-16 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern." This ASU describes how an entity’s management should assess whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management should consider both quantitative and qualitative factors in making its assessment. If after considering management’s plans, substantial doubt about an entity’s going concern is alleviated, an entity shall disclose information in the footnotes that enables the users of the financial statements to understand the events that raised the going concern and how management’s plan alleviated this concern. If after considering management’s plans, substantial doubt about an entity’s going concern is not alleviated, the entity shall disclose in the footnotes indicating that a substantial doubt about the entity’s going concern exists within one year of the date of the issued financial statements. Additionally, the entity shall disclose the events that led to this going concern and management’s plans to mitigate them. The new standard applies to all entities for the first annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The adoption of ASU 2014-15 is not expected to have a material impact on the Company’s consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performing Target Could Be Achieved after the Requisite Service Period." This ASU requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. A reporting entity should apply FASB ASC Topic 718, Compensation-Stock Compensation , to awards with performance conditions that affect vesting. This update is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, for all entities. Early adoption is permitted. ASU 2014-12 may be adopted either prospectively for share-based payment awards granted or modified on or after the effective date, or retrospectively, using a modified retrospective approach. The modified retrospective approach would apply to share-based payment awards outstanding as of the beginning of the earliest annual period presented in the financial statements on adoption, and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." This ASU implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of this update 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. ASU 2014-09 establishes a five-step model which entities must follow to recognize revenue and removes inconsistencies and weaknesses in existing guidance. Per ASU 2015-14, this update is effective for annual periods and interim periods within fiscal years beginning after December 15, 2017, for public business entities, certain employee benefit plans, and certain not-for-profit entities applying U.S. GAAP. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We are currently evaluating the impact this standard will have on our results of operations and financial position. |
Reclassification | RECLASSIFICATION Certain items previously reported have been reclassified to conform with the current year’s reporting presentation and are considered immaterial. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investment securities available-for-sale | Investment securities available-for-sale and held-to-maturity are comprised of the following: September 30, 2015 (Dollars in thousands) Amortized Gross Unrealized Gross Unrealized Estimated Investment securities available-for-sale: Corporate bonds $ 46,111 $ 88 $ 96 $ 46,103 Trust preferred securities 17,546 — 889 16,657 Non-agency mortgage-backed securities 6,249 — 27 6,222 Non-agency collateralized loan obligations 11,991 — 97 11,894 Agency collateralized mortgage obligations 51,340 96 76 51,360 Agency mortgage-backed securities 28,509 365 111 28,763 Agency debentures 4,708 14 — 4,722 Equity securities (short-duration, high-yield-bond mutual fund) 8,273 — 409 7,864 Total investment securities available-for-sale 174,727 563 1,705 173,585 Investment securities held-to-maturity: Corporate bonds 19,449 491 13 19,927 Agency debentures 2,452 56 — 2,508 Municipal bonds 24,526 310 10 24,826 Total investment securities held-to-maturity 46,427 857 23 47,261 Total $ 221,154 $ 1,420 $ 1,728 $ 220,846 December 31, 2014 (Dollars in thousands) Amortized Gross Unrealized Gross Unrealized Estimated Investment securities available-for-sale: Corporate bonds $ 31,833 $ 3 $ 168 $ 31,668 Trust preferred securities 17,446 — 645 16,801 Non-agency mortgage-backed securities 11,617 — 32 11,585 Agency collateralized mortgage obligations 56,984 127 248 56,863 Agency mortgage-backed securities 32,564 502 186 32,880 Agency debentures 8,678 59 — 8,737 Equity securities (short-duration, high-yield-bond mutual fund) 8,110 — 72 8,038 Total investment securities available-for-sale 167,232 691 1,351 166,572 Investment securities held-to-maturity: Corporate bonds 14,452 335 — 14,787 Agency debentures 5,000 1 — 5,001 Municipal bonds 20,139 201 15 20,325 Total investment securities held-to-maturity 39,591 537 15 40,113 Total $ 206,823 $ 1,228 $ 1,366 $ 206,685 |
Schedule of contractual maturities of debt securities available -for-sale | As of September 30, 2015 , the contractual maturities of the debt securities are: September 30, 2015 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Estimated Amortized Estimated Due in one year or less $ — $ — $ — $ — Due from one to five years 46,111 46,103 11,045 11,515 Due from five to ten years 6,211 6,226 33,958 34,292 Due after ten years 114,132 113,392 1,424 1,454 Total debt securities $ 166,454 $ 165,721 $ 46,427 $ 47,261 |
Schedule of fair value and gross unrealized losses on investment securities available-for-sale | The following tables show the fair value and gross unrealized losses on investment securities available-for-sale and held-to-maturity, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of September 30, 2015 and December 31, 2014 , respectively: September 30, 2015 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Investment securities available-for-sale: Corporate bonds $ 24,632 $ 96 $ — $ — $ 24,632 $ 96 Trust preferred securities 12,375 673 4,283 216 16,658 889 Non-agency mortgage-backed securities — — 6,222 27 6,222 27 Non-agency collateralized loan obligations 9,894 97 — — 9,894 97 Agency collateralized mortgage obligations 16,187 15 12,291 61 28,478 76 Agency mortgage-backed securities — — 11,296 111 11,296 111 Equity securities — — 7,864 409 7,864 409 Total investment securities available-for-sale 63,088 881 41,956 824 105,044 1,705 Investment securities held-to-maturity: Corporate bonds 2,436 13 — — 2,436 13 Municipal bonds 3,901 10 — — 3,901 10 Total investment securities held-to-maturity 6,337 23 — — 6,337 23 Total temporarily impaired securities $ 69,425 $ 904 $ 41,956 $ 824 $ 111,381 $ 1,728 December 31, 2014 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Investment securities available-for-sale: Corporate bonds $ 26,723 $ 145 $ 2,263 $ 23 $ 28,986 $ 168 Trust preferred securities 12,601 376 4,200 269 16,801 645 Non-agency mortgage-backed securities 11,585 32 — — 11,585 32 Agency collateralized mortgage obligations 9,317 45 30,327 203 39,644 248 Agency mortgage-backed securities — — 12,073 186 12,073 186 Equity securities 8,038 72 — — 8,038 72 Total investment securities available-for-sale 68,264 670 48,863 681 117,127 1,351 Investment securities held-to-maturity: Municipal bonds 2,857 2 1,446 13 4,303 15 Total investment securities held-to-maturity 2,857 2 1,446 13 4,303 15 Total temporarily impaired securities $ 71,121 $ 672 $ 50,309 $ 694 $ 121,430 $ 1,366 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Schedule of loans receivable | Loans held-for-investment by channel was comprised of the following: September 30, 2015 (Dollars in thousands) Commercial Commercial Private Total Loans held-for-investment, before deferred fees $ 631,144 $ 833,626 $ 1,197,042 $ 2,661,812 Less: net deferred loan (fees) costs (1,013 ) (2,449 ) 2,841 (621 ) Loans held-for-investment, net of deferred fees 630,131 831,177 1,199,883 2,661,191 Less: allowance for loan losses (12,326 ) (5,729 ) (1,295 ) (19,350 ) Loans held-for-investment, net $ 617,805 $ 825,448 $ 1,198,588 $ 2,641,841 December 31, 2014 (Dollars in thousands) Commercial Commercial Private Total Loans held-for-investment, before deferred fees $ 679,274 $ 735,531 $ 986,898 $ 2,401,703 Less: net deferred loan (fees) costs (1,781 ) (2,274 ) 2,404 (1,651 ) Loans held-for-investment, net of deferred fees 677,493 733,257 989,302 2,400,052 Less: allowance for loan losses (13,501 ) (4,755 ) (2,017 ) (20,273 ) Loans held-for-investment, net $ 663,992 $ 728,502 $ 987,285 $ 2,379,779 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Allowance for Loan Losses [Abstract] | |
Investment in loans by credit quality indicator | The following tables present the recorded investment in loans by credit quality indicator: September 30, 2015 (Dollars in thousands) Commercial Commercial Private Total Non-rated $ — $ — $ 81,567 $ 81,567 Pass 582,550 825,314 1,116,435 2,524,299 Special mention 28,207 2,951 — 31,158 Substandard 16,500 2,912 1,881 21,293 Doubtful 2,874 — — 2,874 Loans held-for-investment $ 630,131 $ 831,177 $ 1,199,883 $ 2,661,191 December 31, 2014 (Dollars in thousands) Commercial Commercial Private Total Non-rated $ 129 $ — $ 104,228 $ 104,357 Pass 617,396 729,066 881,235 2,227,697 Special mention 26,105 693 1,667 28,465 Substandard 28,916 3,498 2,172 34,586 Doubtful 4,947 — — 4,947 Loans held-for-investment $ 677,493 $ 733,257 $ 989,302 $ 2,400,052 |
Change in allowance for loan losses | Changes in the allowance for loan losses were as follows for the nine months ended September 30, 2015 and 2014 : Nine Months Ended September 30, 2015 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 13,501 $ 4,755 $ 2,017 $ 20,273 Provision (credit) for loan losses (470 ) 974 (735 ) (231 ) Charge-offs (1,486 ) — — (1,486 ) Recoveries 781 — 13 794 Balance, end of period $ 12,326 $ 5,729 $ 1,295 $ 19,350 Nine Months Ended September 30, 2014 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 11,881 $ 5,104 $ 2,011 $ 18,996 Provision (credit) for loan losses 11,183 (713 ) (102 ) 10,368 Charge-offs (7,577 ) — — (7,577 ) Recoveries 495 — 94 589 Balance, end of period $ 15,982 $ 4,391 $ 2,003 $ 22,376 Changes in the allowance for loan losses were as follows for the three months ended September 30, 2015 and 2014 : Three Months Ended September 30, 2015 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 14,621 $ 4,749 $ 2,037 $ 21,407 Provision (credit) for loan losses (1,579 ) 980 (742 ) (1,341 ) Charge-offs (1,486 ) — — (1,486 ) Recoveries 770 — — 770 Balance, end of period $ 12,326 $ 5,729 $ 1,295 $ 19,350 Three Months Ended September 30, 2014 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 16,459 $ 4,288 $ 2,075 $ 22,822 Provision (credit) for loan losses 714 103 (166 ) 651 Charge-offs (1,220 ) — — (1,220 ) Recoveries 29 — 94 123 Balance, end of period $ 15,982 $ 4,391 $ 2,003 $ 22,376 |
Past due loans segregated by class of loan | The following tables present the age analysis of past due loans segregated by class of loan: September 30, 2015 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Total Commercial and industrial $ — $ — $ 2,926 $ 2,926 $ 627,205 $ 630,131 Commercial real estate — — 2,912 2,912 828,265 831,177 Private banking — 626 1,202 1,828 1,198,055 1,199,883 Loans held-for-investment $ — $ 626 $ 7,040 $ 7,666 $ 2,653,525 $ 2,661,191 December 31, 2014 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Total Commercial and industrial $ 547 $ 524 $ 263 $ 1,334 $ 676,159 $ 677,493 Commercial real estate — — 3,498 3,498 729,759 733,257 Private banking — 1,775 109 1,884 987,418 989,302 Loans held-for-investment $ 547 $ 2,299 $ 3,870 $ 6,716 $ 2,393,336 $ 2,400,052 |
Investment in loans considered to be impaired | The following tables present the Company’s investment in loans considered to be impaired and related information on those impaired loans: As of and for the Nine Months Ended September 30, 2015 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial and industrial $ 14,376 $ 19,785 $ 5,592 $ 15,965 $ — Commercial real estate — — — — — Private banking 576 684 576 617 — Total with a related allowance recorded 14,952 20,469 6,168 16,582 — Without a related allowance recorded: Commercial and industrial 580 1,856 — 942 22 Commercial real estate 2,912 9,067 — 3,108 — Private banking 1,203 1,448 — 1,203 — Total without a related allowance recorded 4,695 12,371 — 5,253 22 Total: Commercial and industrial 14,956 21,641 5,592 16,907 22 Commercial real estate 2,912 9,067 — 3,108 — Private banking 1,779 2,132 576 1,820 — Total $ 19,647 $ 32,840 $ 6,168 $ 21,835 $ 22 As of and for the Twelve Months Ended December 31, 2014 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial and industrial $ 24,402 $ 34,459 $ 4,902 $ 27,014 $ — Commercial real estate — — — — — Private banking 681 767 681 746 — Total with a related allowance recorded 25,083 35,226 5,583 27,760 — Without a related allowance recorded: Commercial and industrial 791 2,013 — 953 27 Commercial real estate 3,498 9,705 — 3,498 — Private banking 1,388 1,632 — 1,444 — Total without a related allowance recorded 5,677 13,350 — 5,895 27 Total: Commercial and industrial 25,193 36,472 4,902 27,967 27 Commercial real estate 3,498 9,705 — 3,498 — Private banking 2,069 2,399 681 2,190 — Total $ 30,760 $ 48,576 $ 5,583 $ 33,655 $ 27 |
Allowance for credit losses and investment in loans by class | The following tables present the allowance for loan losses and recorded investment in loans by class: September 30, 2015 (Dollars in thousands) Commercial Commercial Private Total Allowance for loan losses: Individually evaluated for impairment $ 5,592 $ — $ 576 $ 6,168 Collectively evaluated for impairment 6,734 5,729 719 13,182 Total allowance for loan losses $ 12,326 $ 5,729 $ 1,295 $ 19,350 Loans held-for-investment: Individually evaluated for impairment $ 14,956 $ 2,912 $ 1,779 $ 19,647 Collectively evaluated for impairment 615,175 828,265 1,198,104 2,641,544 Loans held-for-investment $ 630,131 $ 831,177 $ 1,199,883 $ 2,661,191 December 31, 2014 (Dollars in thousands) Commercial Commercial Private Total Allowance for loan losses: Individually evaluated for impairment $ 4,902 $ — $ 681 $ 5,583 Collectively evaluated for impairment 8,599 4,755 1,336 14,690 Total allowance for loan losses $ 13,501 $ 4,755 $ 2,017 $ 20,273 Loans held-for-investment: Individually evaluated for impairment $ 25,193 $ 3,498 $ 2,069 $ 30,760 Collectively evaluated for impairment 652,300 729,759 987,233 2,369,292 Loans held-for-investment $ 677,493 $ 733,257 $ 989,302 $ 2,400,052 |
Loans classified as troubled debt restructuring | The following table provides additional information on the Company’s loans designated as troubled debt restructurings: (Dollars in thousands) September 30, December 31, Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring: Performing loans accruing interest $ 528 $ 528 Non-accrual loans 15,522 14,107 Total troubled debt restructurings $ 16,050 $ 14,635 |
Financial effects of modifications | The financial effects of modifications made to loans designated as TDRs during the nine months ended September 30, 2015 and 2014 , were as follows: Nine Months Ended September 30, 2015 (Dollars in thousands) Count Recorded Investment at the time of Modification Current Recorded Investment Allowance for Loan Losses at the time of Modification Current Allowance for Loan Losses Commercial and industrial: Change in interest terms 1 $ 4,064 $ — $ 400 $ — Extended term and deferred principal 1 433 — 433 — Deferred principal 2 6,849 2,874 1,500 1,868 Total 4 $ 11,346 $ 2,874 $ 2,333 $ 1,868 Nine Months Ended September 30, 2014 (Dollars in thousands) Count Recorded Investment at the time of Modification Current Recorded Investment Allowance for Loan Losses at the time of Modification Current Allowance for Loan Losses Commercial and industrial: Extended term, advanced additional funds, forgave principal 1 $ 5,218 $ 4,696 $ 1,968 $ 1,120 Private Banking: Extended term, reduced interest rate 1 1,266 1,098 100 — Total 2 $ 6,484 $ 5,794 $ 2,068 $ 1,120 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Deposits [Abstract] | |
Schedule of deposits | Interest Rate Weighted Average Balance as of (Dollars in thousands) September 30, September 30, December 31, September 30, December 31, Demand and savings accounts: Noninterest-bearing checking accounts — — — $ 131,622 $ 177,606 Interest-bearing checking accounts 0.05 to 0.50% 0.40 % 0.42 % 101,930 75,679 Money market deposit accounts 0.05 to 1.10% 0.43 % 0.39 % 1,439,919 1,244,921 Total demand and savings accounts 1,673,471 1,498,206 Time deposits 0.05 to 1.39% 0.76 % 0.69 % 927,037 838,747 Total deposit balance $ 2,600,508 $ 2,336,953 Average rate paid on interest-bearing accounts 0.55 % 0.51 % |
Schedule of maturities of time deposits | The contractual maturity of time deposits, including brokered deposits, is as follows: (Dollars in thousands) September 30, December 31, 12 months or less $ 655,872 $ 722,752 12 months to 24 months 204,473 111,865 24 months to 36 months 66,692 4,130 36 months to 48 months — — 48 months to 60 months — — Over 60 months — — Total $ 927,037 $ 838,747 |
Schedule of interest expense on deposits by type of deposit | Interest expense on deposits is as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2015 2014 2015 2014 Interest-bearing checking accounts $ 99 $ 86 $ 318 $ 119 Money market deposit accounts 1,523 1,125 4,079 3,080 Time deposits 1,652 1,543 4,945 4,672 Total interest expense on deposits $ 3,274 $ 2,754 $ 9,342 $ 7,871 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings | As of September 30, 2015 and December 31, 2014 , borrowings were comprised of the following: September 30, 2015 December 31, 2014 (Dollars in thousands) Interest Rate Ending Balance Maturity Date Interest Rate Ending Balance Maturity Date FHLB borrowings: Issued 9/30/2015 0.37 % $ 90,000 10/1/2015 $ — Issued 4/7/2014 — 0.34 % 25,000 4/7/2015 Issued 4/7/2014 — 0.38 % 25,000 6/8/2015 Issued 4/7/2014 — 0.44 % 25,000 9/8/2015 Issued 5/5/2014 — 0.33 % 25,000 2/5/2015 Issued 12/31/2014 — 0.27 % 30,000 1/2/2015 Issued 7/29/2015 0.61 % 25,000 8/4/2016 — Issued 7/29/2015 0.72 % 25,000 11/3/2016 — Subordinated notes payable 5.75 % 35,000 7/1/2019 5.75 % 35,000 7/1/2019 Total $ 175,000 $ 165,000 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of compliance with regulatory capital requirements under banking regulations | The following tables set forth certain information concerning the Company’s and the Bank’s regulatory capital as of September 30, 2015 and December 31, 2014 : September 30, 2015 Actual For Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total risk-based capital ratio Company $ 321,245 13.99 % $ 183,678 8.00 % N/A N/A Bank $ 305,968 13.48 % $ 181,542 8.00 % $ 226,927 10.00 % Tier 1 risk-based capital ratio Company $ 280,619 12.22 % $ 137,758 6.00 % N/A N/A Bank $ 286,250 12.61 % $ 136,156 6.00 % $ 181,542 8.00 % Common equity tier 1 risk-based capital ratio Company $ 280,619 12.22 % $ 103,319 4.50 % N/A N/A Bank $ 286,250 12.61 % $ 102,117 4.50 % $ 147,503 6.50 % Tier 1 leverage ratio Company $ 280,619 9.30 % $ 120,664 4.00 % N/A N/A Bank $ 286,250 9.58 % $ 119,566 4.00 % $ 149,457 5.00 % December 31, 2014 Actual For Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total risk-based capital ratio Company $ 302,217 11.02 % $ 219,458 8.00 % N/A N/A Bank $ 291,388 10.69 % $ 218,013 8.00 % $ 272,516 10.00 % Tier 1 risk-based capital ratio Company $ 253,389 9.24 % $ 109,729 4.00 % N/A N/A Bank $ 270,560 9.93 % $ 109,007 4.00 % $ 163,510 6.00 % Tier 1 leverage ratio Company $ 253,389 9.21 % $ 110,088 4.00 % N/A N/A Bank $ 270,560 9.88 % $ 109,498 4.00 % $ 136,872 5.00 % |
Stock Transactions (Tables)
Stock Transactions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Schedule of common shares, activity | The tables below show the changes in the common shares during the periods indicated. Number of Balance, December 31, 2013 28,690,279 Issuance of restricted common stock — Exercise of stock options 22,500 Purchase of treasury stock — Balance, September 30, 2014 28,712,779 Balance, December 31, 2014 28,060,888 Issuance of restricted common stock 255,916 Forfeitures of restricted common stock (3,000 ) Exercise of stock options 35,000 Purchase of treasury stock (321,109 ) Balance, September 30, 2015 28,027,695 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The computation of basic and diluted earnings per common share for the periods presented is as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands, except per share data) 2015 2014 2015 2014 Net income available to common shareholders $ 6,118 $ 5,706 $ 16,902 $ 10,836 Basic shares 27,728,705 28,712,779 27,779,023 28,699,015 Non-vested restricted stock - dilutive 72,261 — 43,941 — Stock options - dilutive 480,278 292,372 384,695 439,518 Diluted shares 28,281,244 29,005,151 28,207,659 29,138,533 Earnings per common share: Basic $ 0.22 $ 0.20 $ 0.61 $ 0.38 Diluted $ 0.22 $ 0.20 $ 0.60 $ 0.37 |
Schedule of antidilutive securities excluded from computation of earnings per share | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Anti-dilutive shares (1) 635,893 798,732 961,393 716,732 (1) Included stock options and non-vested restricted stock not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive. |
Derivatives and Hedging Activ33
Derivatives and Hedging Activity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated statements of financial condition as of September 30, 2015 and December 31, 2014 : Asset Derivatives Liability Derivatives as of September 30, 2015 as of September 30, 2015 (Dollars in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate products Other assets $ — Other liabilities $ 278 Derivatives not designated as hedging instruments: Interest rate products Other assets $ 11,730 Other liabilities $ 12,611 Asset Derivatives Liability Derivatives as of December 31, 2014 as of December 31, 2014 (Dollars in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate products Other assets $ — Other liabilities $ 442 Derivatives not designated as hedging instruments: Interest rate products Other assets $ 6,327 Other liabilities $ 6,849 |
Schedule of derivative instruments, gain (loss) in statement of financial performance | The tables below present the effect of the Company’s derivative financial instruments in the consolidated statements of income for the periods presented: Three Months Ended September 30, (Dollars in thousands) 2015 2014 Derivatives designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Interest income $ (54 ) $ (80 ) Non-interest income 1 2 Total $ (53 ) $ (78 ) Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Non-interest income $ (414 ) $ 19 Total $ (414 ) $ 19 Nine Months Ended September 30, (Dollars in thousands) 2015 2014 Derivatives designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Interest income $ (211 ) $ (247 ) Non-interest income 3 6 Total $ (208 ) $ (241 ) Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Non-interest income $ (371 ) $ (195 ) Total $ (371 ) $ (195 ) |
Disclosures About Fair Value 34
Disclosures About Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value, assets and liabilities measured on recurring basis | The following tables represent assets and liabilities measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 : September 30, 2015 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets / Financial assets: Investment securities available-for-sale: Corporate bonds $ — $ 46,103 $ — $ 46,103 Trust preferred securities — 16,657 — 16,657 Non-agency mortgage-backed securities — 6,222 — 6,222 Non-agency collateralized loan obligations — 11,894 — 11,894 Agency collateralized mortgage obligations — 51,360 — 51,360 Agency mortgage-backed securities — 28,763 — 28,763 Agency debentures — 4,722 — 4,722 Equity securities 7,864 — — 7,864 Interest rate swaps — 11,730 — 11,730 Total financial assets 7,864 177,451 — 185,315 Financial liabilities: Interest rate swaps — 12,889 — 12,889 Total financial liabilities $ — $ 12,889 $ — $ 12,889 December 31, 2014 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets / Financial assets: Investment securities available-for-sale: Corporate bonds $ — $ 31,668 $ — $ 31,668 Trust preferred securities — 16,801 — 16,801 Non-agency mortgage-backed securities — 11,585 — 11,585 Agency collateralized mortgage obligations — 56,863 — 56,863 Agency mortgage-backed securities — 32,880 — 32,880 Agency debentures — 8,737 — 8,737 Equity securities 8,038 — — 8,038 Interest rate swaps — 6,327 — 6,327 Total financial assets 8,038 164,861 — 172,899 Financial liabilities: Interest rate swaps — 7,291 — 7,291 Total financial liabilities $ — $ 7,291 $ — $ 7,291 |
Fair value measurements, nonrecurring | The following tables represent the balances of assets measured at fair value on a non-recurring basis as of September 30, 2015 and December 31, 2014 : September 30, 2015 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Loans measured for impairment, net $ — $ — $ 13,479 $ 13,479 Other real estate owned — — 1,766 1,766 Total assets $ — $ — $ 15,245 $ 15,245 December 31, 2014 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Loans measured for impairment, net $ — $ — $ 25,177 $ 25,177 Other real estate owned — — 1,370 1,370 Total assets $ — $ — $ 26,547 $ 26,547 |
Fair value inputs, assets, quantitative information | The following tables present additional quantitative information about assets measured at fair value on a recurring and non-recurring basis and for which we have utilized Level 3 inputs to determine fair value as of September 30, 2015 and December 31, 2014 : September 30, 2015 (Dollars in thousands) Fair Value Valuation Techniques (1) Significant Unobservable Inputs Weighted Average Loans measured for impairment, net $ 4,695 Appraisal value Discount due — % Loans measured for impairment, net $ 8,784 Discounted cash flow Discount due to restructured nature of operations 10 % Other real estate owned $ 1,766 Appraisal value Discount due 10 % (1) Fair value is generally determined through independent appraisals of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent. December 31, 2014 (Dollars in thousands) Fair Value Valuation Techniques (1) Significant Unobservable Inputs Weighted Average Loans measured for impairment, net $ 7,559 Appraisal value or Discount due 10 % Loans measured for impairment, net $ 17,618 Discounted cash flow Discount due to restructured nature of operations 10 % Other real estate owned $ 1,370 Appraisal value Discount due 10 % (1) Fair value is generally determined through independent appraisals or market multiple of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent. |
Schedule of fair and carrying value of financial assets and liabilities | A summary of the carrying amounts and estimated fair values of financial instruments is as follows: September 30, 2015 December 31, 2014 (Dollars in thousands) Fair Value Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents 1 $ 100,424 $ 100,424 $ 105,710 $ 105,710 Investment securities available-for-sale: debt 2 165,721 165,721 158,534 158,534 Investment securities available-for-sale: equity 1 7,864 7,864 8,038 8,038 Investment securities held-to-maturity 2 46,427 47,261 39,591 40,113 Loans held-for-investment, net 3 2,641,841 2,641,658 2,379,779 2,376,075 Accrued interest receivable 2 6,693 6,693 6,279 6,279 Investment management fees receivable 2 6,294 6,294 6,818 6,818 Federal Home Loan Bank stock 2 8,002 8,002 5,730 5,730 Bank owned life insurance 2 59,575 59,575 53,323 53,323 Interest rate swaps 2 11,730 11,730 6,327 6,327 Other real estate owned 3 1,766 1,766 1,370 1,370 Financial liabilities: Deposits 2 $ 2,600,508 $ 2,601,190 $ 2,336,953 $ 2,337,734 Borrowings 2 175,000 175,738 165,000 165,163 Interest rate swaps 2 12,889 12,889 7,291 7,291 |
Changes in Accumulated Other 35
Changes in Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive income | The following tables show the changes in accumulated other comprehensive income (loss), for the periods presented: Three Months Ended September 30, 2015 2014 (Dollars in thousands) Unrealized Gains Unrealized Gains Balance, beginning of period $ (215 ) $ (525 ) Change in unrealized holding gains (losses) (698 ) 446 Gains reclassified from other comprehensive income (loss) — — Net other comprehensive income (loss) (698 ) 446 Balance, end of period $ (913 ) $ (79 ) Nine Months Ended September 30, 2015 2014 (Dollars in thousands) Unrealized Gains Unrealized Gains Balance, beginning of period $ (627 ) $ (1,744 ) Change in unrealized holding gains (losses) (275 ) 2,582 Gains reclassified from other comprehensive income (loss) (1) (11 ) (917 ) Net other comprehensive income (loss) (286 ) 1,665 Balance, end of period $ (913 ) $ (79 ) (1) Consists of net realized gains on sales of investment securities available-for-sale of $17,000 and $1.4 million , net of income tax expense of $6,000 and $511,000 for the nine months ended September 30, 2015 and 2014 , respectively. |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following tables provide financial information for the two segments of the Company as of and for the periods indicated. The information provided under the caption "Parent and Other" represents operations not considered to be reportable segments and/or general operating expenses of the Company, which includes the parent company activity as well as eliminations and adjustments which are necessary for purposes of reconciliation to the consolidated amounts. (Dollars in thousands) September 30, December 31, Assets: (unaudited) Bank $ 3,063,196 $ 2,776,421 Investment management 65,385 62,489 Parent and other 1,666 7,947 Total assets $ 3,130,247 $ 2,846,857 Three Months Ended September 30, 2015 Three Months Ended September 30, 2014 (Dollars in thousands) Bank Investment Parent Consolidated Bank Investment Parent Consolidated Income statement data: (unaudited) (unaudited) Interest income $ 20,883 $ — $ 57 $ 20,940 $ 19,635 $ — $ 46 $ 19,681 Interest expense 3,430 — 554 3,984 2,918 — 517 3,435 Net interest income (loss) 17,453 — (497 ) 16,956 16,717 — (471 ) 16,246 Provision (credit) for loan losses (1,341 ) — — (1,341 ) 651 — — 651 Net interest income (loss) after provision (credit) for loan losses 18,794 — (497 ) 18,297 16,066 — (471 ) 15,595 Non-interest income: Investment management fees — 7,074 (54 ) 7,020 — 7,470 (52 ) 7,418 Net gain on the sale of investment securities available-for-sale — — — — — — — — Other non-interest income 1,051 (7 ) — 1,044 1,875 (3 ) — 1,872 Total non-interest income 1,051 7,067 (54 ) 8,064 1,875 7,467 (52 ) 9,290 Non-interest expense: Intangible amortization expense — 390 — 390 — 389 — 389 Other non-interest expense 12,015 4,936 (40 ) 16,911 10,847 5,469 (32 ) 16,284 Total non-interest expense 12,015 5,326 (40 ) 17,301 10,847 5,858 (32 ) 16,673 Income (loss) before tax 7,830 1,741 (511 ) 9,060 7,094 1,609 (491 ) 8,212 Income tax expense (benefit) 2,442 660 (160 ) 2,942 1,971 673 (138 ) 2,506 Net income (loss) $ 5,388 $ 1,081 $ (351 ) $ 6,118 $ 5,123 $ 936 $ (353 ) $ 5,706 Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 (Dollars in thousands) Bank Investment Parent Consolidated Bank Investment Parent Consolidated Income statement data: (unaudited) (unaudited) Interest income $ 61,198 $ — $ 163 $ 61,361 $ 56,934 $ — $ 46 $ 56,980 Interest expense 9,689 — 1,642 11,331 8,245 — 589 8,834 Net interest income (loss) 51,509 — (1,479 ) 50,030 48,689 — (543 ) 48,146 Provision (credit) for loan losses (231 ) — — (231 ) 10,368 — — 10,368 Net interest income (loss) after provision (credit) for loan losses 51,740 — (1,479 ) 50,261 38,321 — (543 ) 37,778 Non-interest income: Investment management fees — 22,332 (143 ) 22,189 — 17,484 (103 ) 17,381 Net gain on the sale of investment securities available-for-sale 17 — — 17 1,428 — — 1,428 Other non-interest income 4,553 (6 ) — 4,547 4,044 38 — 4,082 Total non-interest income 4,570 22,326 (143 ) 26,753 5,472 17,522 (103 ) 22,891 Non-interest expense: Intangible amortization expense — 1,169 — 1,169 — 909 — 909 Other non-interest expense 34,958 15,931 (73 ) 50,816 31,547 12,505 (12 ) 44,040 Total non-interest expense 34,958 17,100 (73 ) 51,985 31,547 13,414 (12 ) 44,949 Income (loss) before tax 21,352 5,226 (1,549 ) 25,029 12,246 4,108 (634 ) 15,720 Income tax expense (benefit) 6,630 1,981 (484 ) 8,127 3,336 1,726 (178 ) 4,884 Net income (loss) $ 14,722 $ 3,245 $ (1,065 ) $ 16,902 $ 8,910 $ 2,382 $ (456 ) $ 10,836 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Details) | 9 Months Ended | ||
Sep. 30, 2015USD ($)officessubsidiary | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of wholly-owned subsidiaries | subsidiary | 3 | ||
Number of representative offices, additional to main office | offices | 4 | ||
Consecutive period loan is current | 6 months | ||
Bad debt expense | $ 0 | $ 0 | |
Allowance for uncollectible accounts | $ 0 | $ 0 | |
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Original maturity of short-term investments | 90 days | ||
Useful life | 20 years | ||
Estimated useful lives of office properties and equipment | 10 years | ||
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Past due period for loans | 90 days | ||
Useful life | 4 years | ||
Estimated useful lives of office properties and equipment | 3 years |
Investment Securities - Availab
Investment Securities - Available-for-sale and Held-to-maturity Securities Investment Types (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Investment securities available-for-sale: | ||
Investments AFS (cost) | $ 174,727 | $ 167,232 |
Available-for-sale Securities, Gross Unrealized Appreciation | 563 | 691 |
Available-for-sale Securities, Gross Unrealized Depreciation | 1,705 | 1,351 |
Available-for-sale Securities, Estimated Fair Value | 173,585 | 166,572 |
Investment securities held-to-maturity: | ||
Held-to-maturity Securities, Amortized Cost | 46,427 | 39,591 |
Held-to-maturity Securities, Gross Unrealized Appreciation | 857 | 537 |
Held-to-maturity Securities, Gross Unrealized Depreciation | 23 | 15 |
Investments HTM (fair value) | 47,261 | 40,113 |
Amortized Cost | 221,154 | 206,823 |
Gross Unrealized Appreciation | 1,420 | 1,228 |
Gross Unrealized Depreciation | 1,728 | 1,366 |
Estimated Fair Value | 220,846 | 206,685 |
Corporate bonds | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 46,111 | 31,833 |
Available-for-sale Securities, Gross Unrealized Appreciation | 88 | 3 |
Available-for-sale Securities, Gross Unrealized Depreciation | 96 | 168 |
Available-for-sale Securities, Estimated Fair Value | 46,103 | 31,668 |
Investment securities held-to-maturity: | ||
Held-to-maturity Securities, Amortized Cost | 19,449 | 14,452 |
Held-to-maturity Securities, Gross Unrealized Appreciation | 491 | 335 |
Held-to-maturity Securities, Gross Unrealized Depreciation | 13 | 0 |
Investments HTM (fair value) | 19,927 | 14,787 |
Trust preferred securities | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 17,546 | 17,446 |
Available-for-sale Securities, Gross Unrealized Appreciation | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Depreciation | 889 | 645 |
Available-for-sale Securities, Estimated Fair Value | 16,657 | 16,801 |
Non-agency mortgage-backed securities | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 6,249 | 11,617 |
Available-for-sale Securities, Gross Unrealized Appreciation | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Depreciation | 27 | 32 |
Available-for-sale Securities, Estimated Fair Value | 6,222 | 11,585 |
Non-agency collateralized loan obligations | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 11,991 | |
Available-for-sale Securities, Gross Unrealized Appreciation | 0 | |
Available-for-sale Securities, Gross Unrealized Depreciation | 97 | |
Available-for-sale Securities, Estimated Fair Value | 11,894 | |
Agency collateralized mortgage obligations | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 51,340 | 56,984 |
Available-for-sale Securities, Gross Unrealized Appreciation | 96 | 127 |
Available-for-sale Securities, Gross Unrealized Depreciation | 76 | 248 |
Available-for-sale Securities, Estimated Fair Value | 51,360 | 56,863 |
Agency mortgage-backed securities | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 28,509 | 32,564 |
Available-for-sale Securities, Gross Unrealized Appreciation | 365 | 502 |
Available-for-sale Securities, Gross Unrealized Depreciation | 111 | 186 |
Available-for-sale Securities, Estimated Fair Value | 28,763 | 32,880 |
Agency debentures | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 4,708 | 8,678 |
Available-for-sale Securities, Gross Unrealized Appreciation | 14 | 59 |
Available-for-sale Securities, Gross Unrealized Depreciation | 0 | 0 |
Available-for-sale Securities, Estimated Fair Value | 4,722 | 8,737 |
Investment securities held-to-maturity: | ||
Held-to-maturity Securities, Amortized Cost | 2,452 | 5,000 |
Held-to-maturity Securities, Gross Unrealized Appreciation | 56 | 1 |
Held-to-maturity Securities, Gross Unrealized Depreciation | 0 | 0 |
Investments HTM (fair value) | 2,508 | 5,001 |
Equity securities (short-duration, high-yield-bond mutual fund) | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 8,273 | 8,110 |
Available-for-sale Securities, Gross Unrealized Appreciation | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Depreciation | 409 | 72 |
Available-for-sale Securities, Estimated Fair Value | 7,864 | 8,038 |
Municipal bonds | ||
Investment securities held-to-maturity: | ||
Held-to-maturity Securities, Amortized Cost | 24,526 | 20,139 |
Held-to-maturity Securities, Gross Unrealized Appreciation | 310 | 201 |
Held-to-maturity Securities, Gross Unrealized Depreciation | 10 | 15 |
Investments HTM (fair value) | $ 24,826 | $ 20,325 |
Investment Securities - Avail39
Investment Securities - Available-for-sale Securities Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Due in one year or less | $ 0 | |
Due from one to five years | 46,111 | |
Due from five to ten years | 6,211 | |
Due after ten years | 114,132 | |
Amortized Cost | 166,454 | |
Available-for-sale Securities, Debt Maturities, Estimated Fair Value | ||
Due in one year or less | 0 | |
Due from one to five years | 46,103 | |
Due from five to ten years | 6,226 | |
Due after ten years | 113,392 | |
Available-for-Sale, Estimated Fair Value | 165,721 | |
Held-to-maturity Securities, Debt Maturities, Amortized Cost | ||
Due in one year or less | 0 | |
Due from one to five years | 11,045 | |
Due from five to ten years | 33,958 | |
Due after ten years | 1,424 | |
Held-to-maturity Securities | 46,427 | $ 39,591 |
Held-to-maturity Securities, Debt Maturities, Estimated Fair Value | ||
Due in one year or less | 0 | |
Due from one to five years | 11,515 | |
Due from five to ten years | 34,292 | |
Due after ten years | 1,454 | |
Held-to-maturity Securities, Estimated Fair Value | $ 47,261 | $ 40,113 |
Investment Securities - Avail40
Investment Securities - Available-for-sale Securities Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | $ 63,088 | $ 68,264 |
12 Months or More | 41,956 | 48,863 |
Total | 105,044 | 117,127 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 881 | 670 |
12 Months or More | 824 | 681 |
Total | 1,705 | 1,351 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 6,337 | 2,857 |
12 Months or More | 0 | 1,446 |
Total | 6,337 | 4,303 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 23 | 2 |
12 Months or More | 0 | 13 |
Total | 23 | 15 |
Less than 12 Months, Fair Value, Total Impaired Securities | 69,425 | 71,121 |
Less than 12 Months, Unrealized losses, Total Impaired Securities | 904 | 672 |
12 Months or More, Fair Value, Total Impaired Securities | 41,956 | 50,309 |
12 Months or More, Unrealized losses, Total Impaired Securities | 824 | 694 |
Total, Fair Value, Total Impaired Securities | 111,381 | 121,430 |
Total, Unrealized losses, Total Impaired Securities | 1,728 | 1,366 |
Corporate bonds | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 24,632 | 26,723 |
12 Months or More | 0 | 2,263 |
Total | 24,632 | 28,986 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 96 | 145 |
12 Months or More | 0 | 23 |
Total | 96 | 168 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 2,436 | |
12 Months or More | 0 | |
Total | 2,436 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 13 | |
12 Months or More | 0 | |
Total | 13 | |
Trust preferred securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 12,375 | 12,601 |
12 Months or More | 4,283 | 4,200 |
Total | 16,658 | 16,801 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 673 | 376 |
12 Months or More | 216 | 269 |
Total | 889 | 645 |
Non-agency mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 0 | 11,585 |
12 Months or More | 6,222 | 0 |
Total | 6,222 | 11,585 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 0 | 32 |
12 Months or More | 27 | 0 |
Total | 27 | 32 |
Non-agency collateralized loan obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 9,894 | |
12 Months or More | 0 | |
Total | 9,894 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 97 | |
12 Months or More | 0 | |
Total | 97 | |
Agency collateralized mortgage obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 16,187 | 9,317 |
12 Months or More | 12,291 | 30,327 |
Total | 28,478 | 39,644 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 15 | 45 |
12 Months or More | 61 | 203 |
Total | 76 | 248 |
Agency mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 11,296 | 12,073 |
Total | 11,296 | 12,073 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 111 | 186 |
Total | 111 | 186 |
Equity securities (short-duration, high-yield-bond mutual fund) | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 0 | 8,038 |
12 Months or More | 7,864 | 0 |
Total | 7,864 | 8,038 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 0 | 72 |
12 Months or More | 409 | 0 |
Total | 409 | 72 |
Municipal bonds | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 3,901 | 2,857 |
12 Months or More | 0 | 1,446 |
Total | 3,901 | 4,303 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 10 | 2 |
12 Months or More | 0 | 13 |
Total | $ 10 | $ 15 |
Investment Securities - Avail41
Investment Securities - Available-for-sale Securities Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)position | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)position | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)position | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Interest income on investments securities | $ 825,000 | $ 661,000 | $ 2,100,000 | $ 1,900,000 | |
Non-taxable interest income | 109,000 | 89,000 | 297,000 | 269,000 | |
Dividend income | 57,000 | $ 47,000 | 162,000 | 47,000 | |
Available-for-sale securities with a contractual maturity due after ten years | 113,392,000 | 113,392,000 | |||
Floating rate securities | $ 101,600,000 | $ 101,600,000 | |||
Percent of available-for-sale securities that are floating rate securities | 89.60% | 89.60% | |||
Held-to-maturity securities, debt maturities due from five to ten years | $ 33,958,000 | $ 33,958,000 | |||
Held-to-maturity securities, debt maturities due from five to ten years, callable | $ 8,000,000 | 8,000,000 | |||
Proceeds from the sale of investment securities available-for-sale | 9,734,000 | 69,555,000 | |||
Gross realized gains on available-for-sale securities | 34,000 | 1,400,000 | |||
Gross realized losses on available-for-sale securities | $ 17,000 | $ 1,000 | |||
Number of available-for-sale positions in unrealized loss positions | position | 27 | 27 | 27 | ||
Available-for-sale Securities, Gross Unrealized Depreciation | $ 1,705,000 | $ 1,705,000 | $ 1,351,000 | ||
Available-for-sale, continuous unrealized loss position for more than 12 months | $ 824,000 | $ 824,000 | $ 681,000 | ||
Available-for-sale, number of positions in an unrealized loss position for more than 12 months | position | 10 | 10 | 9 | ||
Held-to-maturity securities, aggregate unrealized losses temporary impaired | $ 23,000 | $ 23,000 | $ 15,000 | ||
Held-to-maturity, number of positions in an unrealized loss that were temporarily impaired position | position | 5 | 5 | 5 | ||
Held-to-maturity securities, aggregate unrealized losses | $ 23,000 | $ 23,000 | $ 15,000 | ||
Held-to-maturity, number of positions in an unrealized loss position for more than 12 months | position | 0 | 0 | 2 | ||
12 Months or More | $ 0 | $ 0 | $ 13,000 | ||
Investment securities trading, at fair value | 0 | 0 | $ 0 | ||
Federal Home Loan Bank | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities available to be pledged as collateral for borrowings | $ 6,700,000 | $ 6,700,000 |
Loans - Loans by Class (Details
Loans - Loans by Class (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment, net of deferred fees | $ 2,661,191 | $ 2,400,052 | ||||
Less: allowance for loan losses | (19,350) | $ (21,407) | (20,273) | $ (22,376) | $ (22,822) | $ (18,996) |
Loans held-for-investment, net | 2,641,841 | 2,379,779 | ||||
Loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment, before deferred fees | 2,661,812 | 2,401,703 | ||||
Less: net deferred loan (fees) costs | (621) | (1,651) | ||||
Loans held-for-investment, net of deferred fees | 2,661,191 | 2,400,052 | ||||
Less: allowance for loan losses | (19,350) | (20,273) | ||||
Loans held-for-investment, net | 2,641,841 | 2,379,779 | ||||
Commercial and Industrial | Loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment, before deferred fees | 631,144 | 679,274 | ||||
Less: net deferred loan (fees) costs | (1,013) | (1,781) | ||||
Loans held-for-investment, net of deferred fees | 630,131 | 677,493 | ||||
Less: allowance for loan losses | (12,326) | (13,501) | ||||
Loans held-for-investment, net | 617,805 | 663,992 | ||||
Commercial Real Estate | Loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment, before deferred fees | 833,626 | 735,531 | ||||
Less: net deferred loan (fees) costs | (2,449) | (2,274) | ||||
Loans held-for-investment, net of deferred fees | 831,177 | 733,257 | ||||
Less: allowance for loan losses | (5,729) | (4,755) | ||||
Loans held-for-investment, net | 825,448 | 728,502 | ||||
Private Banking | Loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment, before deferred fees | 1,197,042 | 986,898 | ||||
Less: net deferred loan (fees) costs | 2,841 | 2,404 | ||||
Loans held-for-investment, net of deferred fees | 1,199,883 | 989,302 | ||||
Less: allowance for loan losses | (1,295) | (2,017) | ||||
Loans held-for-investment, net | $ 1,198,588 | $ 987,285 |
Loans - Narrative (Details)
Loans - Narrative (Details) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2015USD ($)letter | Sep. 30, 2014USD ($)letter | Dec. 31, 2014USD ($) | Mar. 14, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unfunded commitments, including letters of credit at prevailing market interest rates | $ 1,200,000 | $ 973,400 | ||
Lending commitments maturing in the next 12 months | 833,700 | |||
Lending commitments maturing in second and third year, total | 208,200 | |||
Lending commitments maturing after third year | 154,900 | |||
Reserve for losses on unfunded commitments | 590 | 555 | ||
Loan purchase agreement to acquire loans | $ 219,700 | |||
Loans in the process of origination | 41,800 | 18,700 | ||
Standby letters of credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unfunded commitments, including letters of credit at prevailing market interest rates | 78,400 | $ 89,300 | ||
Standby letters of credit expiring in next 12 months | $ 29,100 | |||
Number of letters of credit drawn | letter | 2 | 1 | ||
Standby letters of credit | $ 146 | $ 100 | ||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans in the process of origination, disbursement period | 30 days | |||
Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans in the process of origination, disbursement period | 60 days |
Allowance for Loan Losses - Nar
Allowance for Loan Losses - Narrative (Details) | Sep. 30, 2015USD ($)portfolioloans | Dec. 31, 2014USD ($)loans | Sep. 30, 2015USD ($)portfolioloans | Sep. 30, 2014USD ($)loans | Sep. 30, 2015USD ($)portfolioloans | Sep. 30, 2014USD ($)loans | Dec. 31, 2014USD ($)loans | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2013USD ($) |
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Number of loan portfolios | portfolio | 3 | 3 | 3 | |||||||
Charge-offs | $ 1,486,000 | $ 1,220,000 | $ 1,486,000 | $ 7,577,000 | ||||||
Recoveries | 770,000 | 123,000 | 794,000 | 589,000 | ||||||
Impaired and non-accrual loans | $ 19,647,000 | $ 30,760,000 | 19,647,000 | 19,647,000 | $ 30,760,000 | |||||
Impaired financing receivable, interest income, cash basis method | 0 | 0 | ||||||||
Loans 90 days or more past due and still accruing | 0 | 0 | 0 | 0 | 0 | |||||
Impaired financing receivable, related allowance | 6,168,000 | 5,583,000 | 6,168,000 | 6,168,000 | 5,583,000 | |||||
Allowance for loan losses | 19,350,000 | 20,273,000 | 19,350,000 | 22,376,000 | 19,350,000 | 22,376,000 | 20,273,000 | $ 21,407,000 | $ 22,822,000 | $ 18,996,000 |
Impaired loans | 4,695,000 | 5,677,000 | 4,695,000 | 4,695,000 | 5,677,000 | |||||
Individually evaluated for impairment | 6,168,000 | 5,583,000 | 6,168,000 | 6,168,000 | 5,583,000 | |||||
Troubled debt restructurings | 16,050,000 | 14,635,000 | 16,050,000 | 16,050,000 | 14,635,000 | |||||
Unused commitments | 890,000 | 175,000 | 890,000 | 890,000 | 175,000 | |||||
Payment defaults for loans modified as TDRs | 0 | |||||||||
Payments to acquire real estate | 396,000 | |||||||||
Other real estate | 1,800,000 | 1,400,000 | 1,800,000 | 1,800,000 | 1,400,000 | |||||
Commercial and Industrial | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Charge-offs | 1,486,000 | 1,220,000 | 1,486,000 | 7,577,000 | ||||||
Recoveries | $ 770,000 | $ 29,000 | $ 781,000 | $ 495,000 | ||||||
Number of loans with recoveries | loans | 2 | 1 | 4 | 2 | ||||||
Number of loans with charge-offs | loans | 1 | 1 | 4 | |||||||
Impaired and non-accrual loans | 14,956,000 | 25,193,000 | $ 14,956,000 | $ 14,956,000 | 25,193,000 | |||||
Impaired financing receivable, related allowance | 5,592,000 | 4,902,000 | 5,592,000 | 5,592,000 | 4,902,000 | |||||
Allowance for loan losses | 12,326,000 | 13,501,000 | 12,326,000 | $ 15,982,000 | 12,326,000 | $ 15,982,000 | 13,501,000 | 14,621,000 | 16,459,000 | 11,881,000 |
Impaired loans | 580,000 | 791,000 | 580,000 | 580,000 | 791,000 | |||||
Individually evaluated for impairment | 5,592,000 | 4,902,000 | 5,592,000 | 5,592,000 | 4,902,000 | |||||
Commercial Real Estate | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Charge-offs | 0 | 0 | 0 | 0 | ||||||
Recoveries | 0 | 0 | 0 | 0 | ||||||
Impaired and non-accrual loans | 2,912,000 | 3,498,000 | 2,912,000 | 2,912,000 | 3,498,000 | |||||
Impaired financing receivable, related allowance | 0 | 0 | 0 | 0 | 0 | |||||
Allowance for loan losses | 5,729,000 | 4,755,000 | 5,729,000 | 4,391,000 | 5,729,000 | 4,391,000 | 4,755,000 | 4,749,000 | 4,288,000 | 5,104,000 |
Impaired loans | 2,912,000 | 3,498,000 | 2,912,000 | 2,912,000 | 3,498,000 | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | |||||
Private banking | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Charge-offs | 0 | 0 | 0 | 0 | ||||||
Recoveries | 0 | $ 94,000 | $ 13,000 | $ 94,000 | ||||||
Number of loans with recoveries | loans | 1 | 1 | 1 | |||||||
Impaired and non-accrual loans | 1,779,000 | 2,069,000 | 1,779,000 | $ 1,779,000 | 2,069,000 | |||||
Impaired financing receivable, related allowance | 576,000 | 681,000 | 576,000 | 576,000 | 681,000 | |||||
Allowance for loan losses | 1,295,000 | 2,017,000 | 1,295,000 | $ 2,003,000 | 1,295,000 | $ 2,003,000 | 2,017,000 | $ 2,037,000 | $ 2,075,000 | $ 2,011,000 |
Impaired loans | 1,203,000 | 1,388,000 | 1,203,000 | 1,203,000 | 1,388,000 | |||||
Individually evaluated for impairment | $ 576,000 | $ 681,000 | $ 576,000 | $ 576,000 | $ 681,000 | |||||
Impaired and Non-accrual | Commercial and Industrial | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Number of loans | loans | 3 | 2 | 3 | 3 | 2 | |||||
Impaired and Non-accrual | Commercial Real Estate | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Number of loans | loans | 1 | 2 | 1 | 1 | 2 | |||||
Impaired and Non-accrual | Private banking | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Number of loans | loans | 2 | 3 | 2 | 2 | 3 | |||||
Impaired and Non-accrual | C&I and CRE Loans | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Individually evaluated for impairment | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Non-accrual | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Troubled debt restructurings | $ 15,522,000 | $ 14,107,000 | $ 15,522,000 | $ 15,522,000 | $ 14,107,000 | |||||
Non-accrual | Commercial and Industrial | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Number of loans classified as TDR | loans | 5 | 3 | 5 | 5 | 3 | |||||
Non-accrual | Commercial Real Estate | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Number of loans classified as TDR | loans | 1 | 1 | ||||||||
Non-accrual | Private banking | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Number of loans classified as TDR | loans | 1 | 2 | 1 | 1 | 2 | |||||
Financing receivable, number of contracts, trouble debt restructuring in default | loans | 2 | 2 | 2 | |||||||
Payment defaults for loans modified as TDRs | $ 4,000,000 | |||||||||
Accruing Interest | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Troubled debt restructurings | $ 528,000 | $ 528,000 | $ 528,000 | 528,000 | $ 528,000 | |||||
Unused commitments | $ 39,000 | $ 54,000 | $ 39,000 | $ 39,000 | $ 54,000 | |||||
Accruing Interest | Commercial and Industrial | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Number of loans classified as TDR | loans | 1 | 1 | 1 | 1 | 1 | |||||
Non-rated | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Percent of total loan portfolio | 3.10% | 4.30% | 3.10% | 3.10% | 4.30% | |||||
Minimum | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Past due period for loans | 90 days | |||||||||
Minimum | Non-rated | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Loans to individual exposure greater then $250,000 | $ 250,000 | $ 250,000 | $ 250,000 | |||||||
Maximum | Non-rated | Commercial Loan | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Commercial loans exposure less than $500,000 | $ 500,000 | $ 500,000 | $ 500,000 | |||||||
Financing Receivable | Cash and Marketable Securities Collateral Risk | Private banking | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Percentage of total private banking loans | 87.70% | 81.20% |
Allowance for Loan Losses - Cre
Allowance for Loan Losses - Credit Quality Indicator (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | $ 2,661,191 | $ 2,400,052 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 630,131 | 677,493 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 831,177 | 733,257 |
Private Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,199,883 | 989,302 |
Non-rated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 81,567 | 104,357 |
Non-rated | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 129 |
Non-rated | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Non-rated | Private Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 81,567 | 104,228 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,524,299 | 2,227,697 |
Pass | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 582,550 | 617,396 |
Pass | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 825,314 | 729,066 |
Pass | Private Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,116,435 | 881,235 |
Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 31,158 | 28,465 |
Special mention | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 28,207 | 26,105 |
Special mention | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,951 | 693 |
Special mention | Private Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 1,667 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 21,293 | 34,586 |
Substandard | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 16,500 | 28,916 |
Substandard | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,912 | 3,498 |
Substandard | Private Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,881 | 2,172 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,874 | 4,947 |
Doubtful | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,874 | 4,947 |
Doubtful | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Doubtful | Private Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | $ 0 | $ 0 |
Allowance for Loan Losses - Cha
Allowance for Loan Losses - Changes in Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | $ 21,407 | $ 22,822 | $ 20,273 | $ 18,996 |
Provision (credit) for loan losses | (1,341) | 651 | (231) | 10,368 |
Charge-offs | (1,486) | (1,220) | (1,486) | (7,577) |
Recoveries | 770 | 123 | 794 | 589 |
Balance, end of period | 19,350 | 22,376 | 19,350 | 22,376 |
Commercial and Industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 14,621 | 16,459 | 13,501 | 11,881 |
Provision (credit) for loan losses | (1,579) | 714 | (470) | 11,183 |
Charge-offs | (1,486) | (1,220) | (1,486) | (7,577) |
Recoveries | 770 | 29 | 781 | 495 |
Balance, end of period | 12,326 | 15,982 | 12,326 | 15,982 |
Commercial Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 4,749 | 4,288 | 4,755 | 5,104 |
Provision (credit) for loan losses | 980 | 103 | 974 | (713) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 5,729 | 4,391 | 5,729 | 4,391 |
Private Banking | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 2,037 | 2,075 | 2,017 | 2,011 |
Provision (credit) for loan losses | (742) | (166) | (735) | (102) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 94 | 13 | 94 |
Balance, end of period | $ 1,295 | $ 2,003 | $ 1,295 | $ 2,003 |
Allowance for Loan Losses - Ana
Allowance for Loan Losses - Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
30-59 Days Past Due | $ 0 | $ 547 |
60-89 Days Past Due | 626 | 2,299 |
Loans Past Due 90 Days or More | 7,040 | 3,870 |
Total Past Due | 7,666 | 6,716 |
Current | 2,653,525 | 2,393,336 |
Loans held-for-investment, net of deferred fees | 2,661,191 | 2,400,052 |
Commercial and Industrial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
30-59 Days Past Due | 0 | 547 |
60-89 Days Past Due | 0 | 524 |
Loans Past Due 90 Days or More | 2,926 | 263 |
Total Past Due | 2,926 | 1,334 |
Current | 627,205 | 676,159 |
Loans held-for-investment, net of deferred fees | 630,131 | 677,493 |
Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Loans Past Due 90 Days or More | 2,912 | 3,498 |
Total Past Due | 2,912 | 3,498 |
Current | 828,265 | 729,759 |
Loans held-for-investment, net of deferred fees | 831,177 | 733,257 |
Private Banking | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 626 | 1,775 |
Loans Past Due 90 Days or More | 1,202 | 109 |
Total Past Due | 1,828 | 1,884 |
Current | 1,198,055 | 987,418 |
Loans held-for-investment, net of deferred fees | $ 1,199,883 | $ 989,302 |
Allowance for Loan Losses - Imp
Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Recorded Investment | ||
With a related allowance | $ 14,952 | $ 25,083 |
Without a related allowance | 4,695 | 5,677 |
Total | 19,647 | 30,760 |
Unpaid Principal Balance | ||
With a related allowance | 20,469 | 35,226 |
Without a related allowance | 12,371 | 13,350 |
Total | 32,840 | 48,576 |
Related Allowance | 6,168 | 5,583 |
Individually evaluated for impairment | 6,168 | 5,583 |
Average Recorded Investment | ||
With a related allowance | 16,582 | 27,760 |
Without a related allowance | 5,253 | 5,895 |
Total | 21,835 | 33,655 |
Interest Income Recognized | ||
With a related allowance | 0 | 0 |
Without a related allowance | 22 | 27 |
Total | 22 | 27 |
Commercial and Industrial | ||
Recorded Investment | ||
With a related allowance | 14,376 | 24,402 |
Without a related allowance | 580 | 791 |
Total | 14,956 | 25,193 |
Unpaid Principal Balance | ||
With a related allowance | 19,785 | 34,459 |
Without a related allowance | 1,856 | 2,013 |
Total | 21,641 | 36,472 |
Related Allowance | 5,592 | 4,902 |
Individually evaluated for impairment | 5,592 | 4,902 |
Average Recorded Investment | ||
With a related allowance | 15,965 | 27,014 |
Without a related allowance | 942 | 953 |
Total | 16,907 | 27,967 |
Interest Income Recognized | ||
With a related allowance | 0 | 0 |
Without a related allowance | 22 | 27 |
Total | 22 | 27 |
Commercial Real Estate | ||
Recorded Investment | ||
With a related allowance | 0 | 0 |
Without a related allowance | 2,912 | 3,498 |
Total | 2,912 | 3,498 |
Unpaid Principal Balance | ||
With a related allowance | 0 | 0 |
Without a related allowance | 9,067 | 9,705 |
Total | 9,067 | 9,705 |
Related Allowance | 0 | 0 |
Individually evaluated for impairment | 0 | 0 |
Average Recorded Investment | ||
With a related allowance | 0 | 0 |
Without a related allowance | 3,108 | 3,498 |
Total | 3,108 | 3,498 |
Interest Income Recognized | ||
With a related allowance | 0 | 0 |
Without a related allowance | 0 | 0 |
Total | 0 | 0 |
Private Banking | ||
Recorded Investment | ||
With a related allowance | 576 | 681 |
Without a related allowance | 1,203 | 1,388 |
Total | 1,779 | 2,069 |
Unpaid Principal Balance | ||
With a related allowance | 684 | 767 |
Without a related allowance | 1,448 | 1,632 |
Total | 2,132 | 2,399 |
Related Allowance | 576 | 681 |
Individually evaluated for impairment | 576 | 681 |
Average Recorded Investment | ||
With a related allowance | 617 | 746 |
Without a related allowance | 1,203 | 1,444 |
Total | 1,820 | 2,190 |
Interest Income Recognized | ||
With a related allowance | 0 | 0 |
Without a related allowance | 0 | 0 |
Total | $ 0 | $ 0 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Allowance for loan losses [Abstract] | ||
Individually evaluated for impairment | $ 6,168 | $ 5,583 |
Collectively evaluated for impairment | 13,182 | 14,690 |
Total allowance for loan losses | 19,350 | 20,273 |
Portfolio loans [Abstract] | ||
Individually evaluated for impairment | 19,647 | 30,760 |
Collectively evaluated for impairment | 2,641,544 | 2,369,292 |
Loans held-for-investment, net of deferred fees | 2,661,191 | 2,400,052 |
Commercial and Industrial | ||
Allowance for loan losses [Abstract] | ||
Individually evaluated for impairment | 5,592 | 4,902 |
Collectively evaluated for impairment | 6,734 | 8,599 |
Total allowance for loan losses | 12,326 | 13,501 |
Portfolio loans [Abstract] | ||
Individually evaluated for impairment | 14,956 | 25,193 |
Collectively evaluated for impairment | 615,175 | 652,300 |
Loans held-for-investment, net of deferred fees | 630,131 | 677,493 |
Commercial Real Estate | ||
Allowance for loan losses [Abstract] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 5,729 | 4,755 |
Total allowance for loan losses | 5,729 | 4,755 |
Portfolio loans [Abstract] | ||
Individually evaluated for impairment | 2,912 | 3,498 |
Collectively evaluated for impairment | 828,265 | 729,759 |
Loans held-for-investment, net of deferred fees | 831,177 | 733,257 |
Private Banking | ||
Allowance for loan losses [Abstract] | ||
Individually evaluated for impairment | 576 | 681 |
Collectively evaluated for impairment | 719 | 1,336 |
Total allowance for loan losses | 1,295 | 2,017 |
Portfolio loans [Abstract] | ||
Individually evaluated for impairment | 1,779 | 2,069 |
Collectively evaluated for impairment | 1,198,104 | 987,233 |
Loans held-for-investment, net of deferred fees | $ 1,199,883 | $ 989,302 |
Allowance for Loan Losses - Tro
Allowance for Loan Losses - Troubled Debt Restructuring (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | $ 16,050 | $ 14,635 |
Accruing Interest | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 528 | 528 |
Non-accrual | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | $ 15,522 | $ 14,107 |
Allowance for Loan Losses - Mod
Allowance for Loan Losses - Modifications (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)loans | Sep. 30, 2014USD ($)loans | |
Financing Receivable, Modifications [Line Items] | ||
Count | loans | 4 | 2 |
Recorded Investment at the time of Modification | $ 11,346 | $ 6,484 |
Current Recorded Investment | 2,874 | 5,794 |
Allowance for Loan Losses at the time of Modification | 2,333 | 2,068 |
Current Allowance for Loan Losses | $ 1,868 | $ 1,120 |
Change in interest terms | Commercial and Industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Count | loans | 1 | |
Recorded Investment at the time of Modification | $ 4,064 | |
Current Recorded Investment | 0 | |
Allowance for Loan Losses at the time of Modification | 400 | |
Current Allowance for Loan Losses | $ 0 | |
Extended term and deferred principal | Commercial and Industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Count | loans | 1 | |
Recorded Investment at the time of Modification | $ 433 | |
Current Recorded Investment | 0 | |
Allowance for Loan Losses at the time of Modification | 433 | |
Current Allowance for Loan Losses | $ 0 | |
Extended term, advanced additional funds, forgave principal | Commercial and Industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Count | loans | 1 | |
Recorded Investment at the time of Modification | $ 5,218 | |
Current Recorded Investment | 4,696 | |
Allowance for Loan Losses at the time of Modification | 1,968 | |
Current Allowance for Loan Losses | $ 1,120 | |
Extended term, reduced interest rate | Private Banking | ||
Financing Receivable, Modifications [Line Items] | ||
Count | loans | 1 | |
Recorded Investment at the time of Modification | $ 1,266 | |
Current Recorded Investment | 1,098 | |
Allowance for Loan Losses at the time of Modification | 100 | |
Current Allowance for Loan Losses | $ 0 | |
Deferred principal | Commercial and Industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Count | loans | 2 | |
Recorded Investment at the time of Modification | $ 6,849 | |
Current Recorded Investment | 2,874 | |
Allowance for Loan Losses at the time of Modification | 1,500 | |
Current Allowance for Loan Losses | $ 1,868 |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits by Type (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Interest Rate Range Domestic Deposit Liabilities [Abstract] | ||
Interest-bearing checking accounts, minimum | 0.05% | |
Interest-bearing checking accounts, maximum | 0.50% | |
Money market deposit accounts, minimum | 0.05% | |
Money market deposit accounts, maximum | 1.10% | |
Time deposits, minimum | 0.05% | |
Time deposits, maximum | 1.39% | |
Weighted Average Rate Domestic Deposit Liabilities [Abstract] | ||
Interest-bearing checking accounts | 0.40% | 0.42% |
Money market deposit accounts | 0.43% | 0.39% |
Time deposits | 0.76% | 0.69% |
Average rate paid on interest-bearing accounts | 0.55% | 0.51% |
Domestic Deposit Liabilities, Demand and Savings Accounts [Abstract] | ||
Noninterest-bearing checking accounts | $ 131,622 | $ 177,606 |
Interest-bearing checking accounts | 101,930 | 75,679 |
Money market deposit accounts | 1,439,919 | 1,244,921 |
Total demand and savings accounts | 1,673,471 | 1,498,206 |
Time deposits | 927,037 | 838,747 |
Total deposit balance | $ 2,600,508 | $ 2,336,953 |
Deposits - Contractual Maturiti
Deposits - Contractual Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Time Deposits, Rolling Year Maturity [Abstract] | ||
12 months or less | $ 655,872 | $ 722,752 |
12 months to 24 months | 204,473 | 111,865 |
24 months to 36 months | 66,692 | 4,130 |
36 months to 48 months | 0 | 0 |
48 months to 60 months | 0 | 0 |
Over 60 months | 0 | 0 |
Total | $ 927,037 | $ 838,747 |
Deposits - Interest Expense on
Deposits - Interest Expense on Deposits by Deposit Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest Expense, Deposits [Abstract] | ||||
Interest-bearing checking accounts | $ 99 | $ 86 | $ 318 | $ 119 |
Money market deposit accounts | 1,523 | 1,125 | 4,079 | 3,080 |
Time deposits | 1,652 | 1,543 | 4,945 | 4,672 |
Total interest expense on deposits | $ 3,274 | $ 2,754 | $ 9,342 | $ 7,871 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Brokered deposits | $ 1,000 | $ 882.6 |
Certificate of Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS), brokered | 490.5 | 419.1 |
Time deposits, $100,000 or more, excluding brokered certificates of deposit | $ 422.9 | $ 376.6 |
Borrowings (Details)
Borrowings (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Advances from Federal Home Loan Banks [Abstract] | ||
Ending Balance | $ 175,000,000 | $ 165,000,000 |
TriState Capital Bank | Federal Home Loan Bank | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Loans pledged as collateral | 671,300,000 | |
TriState Capital Bank | Federal Home Loan Bank | Agency bond | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Bond security pledged as collateral, fair value | 6,700,000 | |
TriState Capital Bank | M&T Bank | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Borrowing capacity | 10,000,000 | |
TriState Capital Bank | Texas Capital Bank [Member] | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Borrowing capacity | 20,000,000 | |
TriState Capital Bank | Line of credit | Federal Home Loan Bank | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Ending Balance | 140,000,000 | $ 130,000,000 |
Remaining borrowing capacity | $ 336,100,000 | |
Subordinated Notes Payable 5.75 Percent | Subordinated notes payable | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Interest Rate | 5.75% | 5.75% |
Ending Balance | $ 35,000,000 | $ 35,000,000 |
Term | 5 years | |
Maturity Date 7/1/2015 | FHLB borrowings | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Interest Rate | 0.37% | |
Maturity Date 7/1/2015 | TriState Capital Bank | Line of credit | Federal Home Loan Bank | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Ending Balance | $ 90,000,000 | $ 0 |
Maturity Date 4/7/2015 | FHLB borrowings | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Interest Rate | 0.343% | |
Maturity Date 4/7/2015 | TriState Capital Bank | Line of credit | Federal Home Loan Bank | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Ending Balance | 0 | $ 25,000,000 |
Maturity Date 6/8/2015 | FHLB borrowings | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Interest Rate | 0.38166% | |
Maturity Date 6/8/2015 | TriState Capital Bank | Line of credit | Federal Home Loan Bank | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Ending Balance | 0 | $ 25,000,000 |
Maturity Date 9/8/2015 | FHLB borrowings | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Interest Rate | 0.43904% | |
Maturity Date 9/8/2015 | TriState Capital Bank | Line of credit | Federal Home Loan Bank | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Ending Balance | 0 | $ 25,000,000 |
Maturity Date 2/5/2015 | FHLB borrowings | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Interest Rate | 0.33% | |
Maturity Date 2/5/2015 | TriState Capital Bank | Line of credit | Federal Home Loan Bank | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Ending Balance | 0 | $ 25,000,000 |
Maturity Date 1/2/2015 | FHLB borrowings | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Interest Rate | 0.27% | |
Maturity Date 1/2/2015 | TriState Capital Bank | Line of credit | Federal Home Loan Bank | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Ending Balance | $ 0 | $ 30,000,000 |
Maturity Date 8/4/2016 | FHLB borrowings | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Interest Rate | 0.61421% | |
Maturity Date 8/4/2016 | TriState Capital Bank | Line of credit | Federal Home Loan Bank | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Ending Balance | $ 25,000,000 | 0 |
Maturity Date 11/3/2016 | FHLB borrowings | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Interest Rate | 0.72096% | |
Maturity Date 11/3/2016 | TriState Capital Bank | Line of credit | Federal Home Loan Bank | ||
Advances from Federal Home Loan Banks [Abstract] | ||
Ending Balance | $ 25,000,000 | $ 0 |
Regulatory Capital - Regulatory
Regulatory Capital - Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Company | ||
Total risk-based capital (Amount) | ||
Actual Capital | $ 321,245 | $ 302,217 |
Capital Required for Capital Adequacy | $ 183,678 | $ 219,458 |
Total risk-based capital (Ratio) | ||
Actual Capital | 13.99% | 11.02% |
Capital Required for Capital Adequacy | 8.00% | 8.00% |
Tier 1 risk-based capital (Amount) | ||
Tier 1 Risk Based Capital | $ 280,619 | $ 253,389 |
Tier 1 Risk Based Capital Required for Capital Adequacy | $ 137,758 | $ 109,729 |
Tier 1 risk-based capital (Ratio) | ||
Tier 1 Risk Based Capital | 12.22% | 9.24% |
Tier 1 Risk Based Capital Required for Capital Adequacy | 6.00% | 4.00% |
Common Equity Tier One Risk Based Capital (Amount) | ||
Common Equity Tier One Risk Based Capital | $ 280,619 | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy | $ 103,319 | |
Common Equity Tier One RIsk Based Capital (Ratio) | ||
Common Equity Tier One Risk Based Capital To Risk Weighted Assets | 12.22% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |
Tier 1 leverage (Amount) | ||
Tier 1 Leverage Capital | $ 280,619 | $ 253,389 |
Tier 1 Leverage Capital Required for Capital Adequacy | $ 120,664 | $ 110,088 |
Tier 1 leverage (Ratio) | ||
Tier 1 Leverage Capital | 9.30% | 9.21% |
Tier 1 Leverage Capital Required for Capital Adequacy | 4.00% | 4.00% |
TriState Capital Bank | ||
Total risk-based capital (Amount) | ||
Actual Capital | $ 305,968 | $ 291,388 |
Capital Required for Capital Adequacy | 181,542 | 218,013 |
Capital Required to be Well Capitalized | $ 226,927 | $ 272,516 |
Total risk-based capital (Ratio) | ||
Actual Capital | 13.48% | 10.69% |
Capital Required for Capital Adequacy | 8.00% | 8.00% |
Capital Required to be Well Capitalized | 10.00% | 10.00% |
Tier 1 risk-based capital (Amount) | ||
Tier 1 Risk Based Capital | $ 286,250 | $ 270,560 |
Tier 1 Risk Based Capital Required for Capital Adequacy | 136,156 | 109,007 |
Tier 1 Risk Based Capital Required to be Well Capitalized | $ 181,542 | $ 163,510 |
Tier 1 risk-based capital (Ratio) | ||
Tier 1 Risk Based Capital | 12.61% | 9.93% |
Tier 1 Risk Based Capital Required for Capital Adequacy | 6.00% | 4.00% |
Tier 1 Risk Based Capital Required to be Well Capitalized | 8.00% | 6.00% |
Common Equity Tier One Risk Based Capital (Amount) | ||
Common Equity Tier One Risk Based Capital | $ 286,250 | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy | 102,117 | |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized | $ 147,503 | |
Common Equity Tier One RIsk Based Capital (Ratio) | ||
Common Equity Tier One Risk Based Capital To Risk Weighted Assets | 12.61% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | |
Tier 1 leverage (Amount) | ||
Tier 1 Leverage Capital | $ 286,250 | $ 270,560 |
Tier 1 Leverage Capital Required for Capital Adequacy | 119,566 | 109,498 |
Tier 1 Leverage Capital Required to be Well Capitalized | $ 149,457 | $ 136,872 |
Tier 1 leverage (Ratio) | ||
Tier 1 Leverage Capital | 9.58% | 9.88% |
Tier 1 Leverage Capital Required for Capital Adequacy | 4.00% | 4.00% |
Tier 1 Leverage Capital Required to be Well Capitalized | 5.00% | 5.00% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | Feb. 28, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Employer's contribution to employees' 401(k) plan, percent | 3.00% | |||||
Contribution expense | $ 175 | $ 168 | $ 528 | $ 454 | ||
Chief Executive Officer | Supplemental Employee Retirement Plan, Defined Benefit | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Vesting period | 5 years | |||||
Projected monthly payments | $ 25 | |||||
Number of months projected payments paid | 180 months | |||||
Net periodic benefit cost | $ 200 | $ 172 | $ 591 | $ 485 | ||
Discount rate | 2.98% | 3.56% | 2.98% | 3.56% | ||
Liability recorded | $ 1,900 | $ 1,900 | $ 1,300 | |||
Minimum | Chief Executive Officer | Supplemental Employee Retirement Plan, Defined Benefit | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Number of months before commencement | 60 months |
Stock Transactions - Narrative
Stock Transactions - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | Oct. 31, 2014 | |
Class of Stock [Line Items] | |||||
Shares repurchased | 321,109 | 678,891 | |||
Cost of shares repurchased | $ 3,158,000 | $ 6,700,000 | |||
Average cost per share (usd per share) | $ 9.84 | $ 9.90 | $ 9.94 | ||
Total treasury stock repurchased (shares) | 1,000,000 | 1,000,000 | 678,891 | ||
Total treasury stock repurchased | $ 9,904,000 | $ 9,904,000 | $ 6,746,000 | ||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 10,000,000 | ||||
Stock repurchase program, authorized shares | 1,000,000 | ||||
Shares repurchased | 321,109 | 0 |
Stock Transactions - Shares Out
Stock Transactions - Shares Outstanding Activity (Details) - shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Number of Common Shares Outstanding | |||
Purchase of treasury stock (shares) | (321,109) | (678,891) | |
Number of Common Shares Outstanding | |||
Number of Common Shares Outstanding | |||
Balance, beginning of period (shares) | 28,060,888 | 28,690,279 | 28,690,279 |
Issuance of restricted common stock (shares) | 255,916 | 0 | |
Forfeitures of restricted common stock (shares) | (3,000) | ||
Exercise of stock options (shares) | 35,000 | 22,500 | |
Purchase of treasury stock (shares) | (321,109) | 0 | |
Balance, ending of period (shares) | 28,027,695 | 28,712,779 | 28,060,888 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income available to common shareholders | $ 6,118 | $ 5,706 | $ 16,902 | $ 10,836 |
Basic shares (in shares) | 27,728,705 | 28,712,779 | 27,779,023 | 28,699,015 |
Non-vested restricted stock - dilutive (in shares) | 72,261 | 0 | 43,941 | 0 |
Stock options - dilutive (in shares) | 480,278 | 292,372 | 384,695 | 439,518 |
Diluted shares (in shares) | 28,281,244 | 29,005,151 | 28,207,659 | 29,138,533 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.22 | $ 0.20 | $ 0.61 | $ 0.38 |
Diluted (in dollars per share) | $ 0.22 | $ 0.20 | $ 0.60 | $ 0.37 |
Anti-dilutive shares (in shares) | 635,893 | 798,732 | 961,393 | 716,732 |
Derivative and Hedging Activity
Derivative and Hedging Activity - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Designated as Hedging Instrument | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | $ 0 | $ 0 |
Designated as Hedging Instrument | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives, fair value | 278 | 442 |
Not Designated as Hedging Instrument | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | 11,730 | 6,327 |
Not Designated as Hedging Instrument | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives, fair value | $ 12,611 | $ 6,849 |
Derivatives and Hedging Activ63
Derivatives and Hedging Activity - Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance (Details) - Interest Rate Swap - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | $ (53) | $ (78) | $ (208) | $ (241) |
Not Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | (414) | 19 | (371) | (195) |
Interest income / expense | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | (54) | (80) | (211) | (247) |
Non-interest income / (expense) | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | 1 | 2 | 3 | 6 |
Non-interest income / (expense) | Not Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | $ (414) | $ 19 | $ (371) | $ (195) |
Derivatives and Hedging Activ64
Derivatives and Hedging Activity - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)Interest_Rate_Swap | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Interest_Rate_Swap | Sep. 30, 2014USD ($) | |
Derivatives, Fair Value [Line Items] | ||||
Counterparty default losses | $ 0 | $ 0 | ||
Interest Rate Swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Termination value of derivatives, including accrued interest, in a net liability position | $ 12,800,000 | 12,800,000 | ||
Collateral already posted amount | 10,900,000 | 10,900,000 | ||
Interest Rate Swap | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | (53,000) | $ (78,000) | (208,000) | (241,000) |
Interest Rate Swap | Designated as Hedging Instrument | Interest income / expense | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | (54,000) | (80,000) | (211,000) | (247,000) |
Interest Rate Swap | Designated as Hedging Instrument | Non-interest income / (expense) | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | $ 1,000 | 2,000 | $ 3,000 | 6,000 |
Interest Rate Swap | Not Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Number of interest rate derivatives | Interest_Rate_Swap | 140 | 140 | ||
Derivative, aggregate notional amount | $ 546,100,000 | $ 546,100,000 | ||
Amount of gain or (loss) recognized in income on derivative | (414,000) | 19,000 | (371,000) | (195,000) |
Interest Rate Swap | Not Designated as Hedging Instrument | Non-interest income / (expense) | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | $ (414,000) | $ 19,000 | $ (371,000) | $ (195,000) |
Fair Value Hedging | Interest Rate Swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Number of interest rate derivatives | Interest_Rate_Swap | 4 | 4 | ||
Derivative, aggregate notional amount | $ 3,300,000 | $ 3,300,000 |
Disclosures About Fair Value 65
Disclosures About Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Total financial assets | $ 185,315 | $ 172,899 |
Financial liabilities: | ||
Total financial liabilities | 12,889 | 7,291 |
Level 1 | ||
Financial assets: | ||
Total financial assets | 7,864 | 8,038 |
Financial liabilities: | ||
Total financial liabilities | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Total financial assets | 177,451 | 164,861 |
Financial liabilities: | ||
Total financial liabilities | 12,889 | 7,291 |
Level 3 | ||
Financial assets: | ||
Total financial assets | 0 | 0 |
Financial liabilities: | ||
Total financial liabilities | 0 | 0 |
Interest Rate Swap | ||
Financial assets: | ||
Interest rate swaps | 11,730 | 6,327 |
Financial liabilities: | ||
Interest rate swaps | 12,889 | 7,291 |
Interest Rate Swap | Level 1 | ||
Financial assets: | ||
Interest rate swaps | 0 | 0 |
Financial liabilities: | ||
Interest rate swaps | 0 | 0 |
Interest Rate Swap | Level 2 | ||
Financial assets: | ||
Interest rate swaps | 11,730 | 6,327 |
Financial liabilities: | ||
Interest rate swaps | 12,889 | 7,291 |
Interest Rate Swap | Level 3 | ||
Financial assets: | ||
Interest rate swaps | 0 | 0 |
Financial liabilities: | ||
Interest rate swaps | 0 | 0 |
Corporate bonds | ||
Financial assets: | ||
Investment securities | 46,103 | 31,668 |
Corporate bonds | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Corporate bonds | Level 2 | ||
Financial assets: | ||
Investment securities | 46,103 | 31,668 |
Corporate bonds | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Trust preferred securities | ||
Financial assets: | ||
Investment securities | 16,657 | 16,801 |
Trust preferred securities | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Trust preferred securities | Level 2 | ||
Financial assets: | ||
Investment securities | 16,657 | 16,801 |
Trust preferred securities | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Non-agency mortgage-backed securities | ||
Financial assets: | ||
Investment securities | 6,222 | 11,585 |
Non-agency mortgage-backed securities | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Non-agency mortgage-backed securities | Level 2 | ||
Financial assets: | ||
Investment securities | 6,222 | 11,585 |
Non-agency mortgage-backed securities | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Non-agency collateralized loan obligations | ||
Financial assets: | ||
Investment securities | 11,894 | |
Non-agency collateralized loan obligations | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | |
Non-agency collateralized loan obligations | Level 2 | ||
Financial assets: | ||
Investment securities | 11,894 | |
Non-agency collateralized loan obligations | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | |
Agency collateralized mortgage obligations | ||
Financial assets: | ||
Investment securities | 51,360 | 56,863 |
Agency collateralized mortgage obligations | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency collateralized mortgage obligations | Level 2 | ||
Financial assets: | ||
Investment securities | 51,360 | 56,863 |
Agency collateralized mortgage obligations | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency mortgage-backed securities | ||
Financial assets: | ||
Investment securities | 28,763 | 32,880 |
Agency mortgage-backed securities | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency mortgage-backed securities | Level 2 | ||
Financial assets: | ||
Investment securities | 28,763 | 32,880 |
Agency mortgage-backed securities | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency debentures | ||
Financial assets: | ||
Investment securities | 4,722 | 8,737 |
Agency debentures | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency debentures | Level 2 | ||
Financial assets: | ||
Investment securities | 4,722 | 8,737 |
Agency debentures | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Equity securities (short-duration, high-yield-bond mutual fund) | ||
Financial assets: | ||
Investment securities | 7,864 | 8,038 |
Equity securities (short-duration, high-yield-bond mutual fund) | Level 1 | ||
Financial assets: | ||
Investment securities | 7,864 | 8,038 |
Equity securities (short-duration, high-yield-bond mutual fund) | Level 2 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Equity securities (short-duration, high-yield-bond mutual fund) | Level 3 | ||
Financial assets: | ||
Investment securities | $ 0 | $ 0 |
Disclosure About Fair Value of
Disclosure About Fair Value of Financial Instrument - Fair Value Measurements, Nonrecurring (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Level 3 | ||
Financial assets: | ||
Other real estate owned | $ 1,766 | $ 1,370 |
Fair Value, Measurements, Nonrecurring | ||
Financial assets: | ||
Loans measured for impairment, net | 13,479 | 25,177 |
Other real estate owned | 1,766 | 1,370 |
Total assets | 15,245 | 26,547 |
Fair Value, Measurements, Nonrecurring | Level 1 | ||
Financial assets: | ||
Loans measured for impairment, net | 0 | 0 |
Other real estate owned | 0 | 0 |
Total assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | ||
Financial assets: | ||
Loans measured for impairment, net | 0 | 0 |
Other real estate owned | 0 | 0 |
Total assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Financial assets: | ||
Loans measured for impairment, net | 13,479 | 25,177 |
Other real estate owned | 1,766 | 1,370 |
Total assets | $ 15,245 | $ 26,547 |
Disclosures About Fair Value 67
Disclosures About Fair Value of Financial Instruments - Fair Value Inputs, Assets, Quantitative Information (Details) - Level 3 - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Loans measured for impairment | Appraisal value | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total financial assets | $ 4,695 | $ 7,559 |
Fair Value Inputs [Abstract] | ||
Discount due to salability conditions or lack of market data | 0.00% | 10.00% |
Loans measured for impairment | Discounted Cash Flow | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total financial assets | $ 8,784 | $ 17,618 |
Fair Value Inputs [Abstract] | ||
Discount due to salability conditions or lack of market data | 10.00% | 10.00% |
Other real estate owned | Appraisal value | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total financial assets | $ 1,766 | $ 1,370 |
Fair Value Inputs [Abstract] | ||
Discount due to salability conditions or lack of market data | 10.00% | 10.00% |
Disclosures about Fair Value 68
Disclosures about Fair Value of Financial Instruments - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Investment securities available-for-sale: debt | $ 165,721 | |
Investment securities held-to-maturity | 47,261 | $ 40,113 |
Investment management fees receivable | 6,294 | 6,818 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 100,424 | 105,710 |
Investment securities available-for-sale: equity | 7,864 | 8,038 |
Level 1 | Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 100,424 | 105,710 |
Investment securities available-for-sale: equity | 7,864 | 8,038 |
Level 2 | ||
Financial assets: | ||
Investment securities available-for-sale: debt | 165,721 | 158,534 |
Investment securities held-to-maturity | 47,261 | 40,113 |
Accrued interest receivable | 6,693 | 6,279 |
Investment management fees receivable | 6,294 | 6,818 |
Federal Home Loan Bank stock | 8,002 | 5,730 |
Bank owned life insurance | 59,575 | 53,323 |
Interest rate swaps | 11,730 | 6,327 |
Financial liabilities: | ||
Deposits | 2,601,190 | 2,337,734 |
Borrowings | 175,738 | 165,163 |
Interest rate swaps | 12,889 | 7,291 |
Level 2 | Carrying Amount | ||
Financial assets: | ||
Investment securities available-for-sale: debt | 165,721 | 158,534 |
Investment securities held-to-maturity | 46,427 | 39,591 |
Accrued interest receivable | 6,693 | 6,279 |
Investment management fees receivable | 6,294 | 6,818 |
Federal Home Loan Bank stock | 8,002 | 5,730 |
Bank owned life insurance | 59,575 | 53,323 |
Interest rate swaps | 11,730 | 6,327 |
Financial liabilities: | ||
Deposits | 2,600,508 | 2,336,953 |
Borrowings | 175,000 | 165,000 |
Interest rate swaps | 12,889 | 7,291 |
Level 3 | ||
Financial assets: | ||
Loans held-for-investment, net | 2,641,658 | 2,376,075 |
Other real estate owned | 1,766 | 1,370 |
Level 3 | Carrying Amount | ||
Financial assets: | ||
Loans held-for-investment, net | 2,641,841 | 2,379,779 |
Other real estate owned | $ 1,766 | $ 1,370 |
Disclosure About Fair Value o69
Disclosure About Fair Value of Financial Instrument - Narrative (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |||
Specific allowance for loan losses | $ 6,168,000 | $ 5,583,000 | |
Adjusted fair value of collateral dependent impaired loans | 4,700,000 | 7,600,000 | |
Adjusted fair value as a result of adjusting equilateral value of discounted cash flow | 8,800,000 | $ 17,600,000 | |
Fair value levels transfers | $ 0 | $ 0 |
Changes in Accumulated Other 70
Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | $ (627) | |||
Other comprehensive income (loss) | $ (698) | $ 446 | (286) | $ 1,665 |
Balance, end of period | (913) | (913) | ||
Net gain on the sale of investment securities available-for-sale | 0 | 0 | 17 | 1,428 |
Income tax expense | 2,942 | 2,506 | 8,127 | 4,884 |
Unrealized Gains and Losses on Investment Securities | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | (215) | (525) | (627) | (1,744) |
Change in unrealized holding gains (losses) | (698) | 446 | (275) | 2,582 |
Gains reclassified from other comprehensive income (loss) | 0 | 0 | (11) | (917) |
Other comprehensive income (loss) | (698) | 446 | (286) | 1,665 |
Balance, end of period | $ (913) | $ (79) | (913) | (79) |
Unrealized Gains and Losses on Investment Securities | Reclassification Out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Net gain on the sale of investment securities available-for-sale | 17 | 1,400 | ||
Income tax expense | $ 6 | $ 511 |
Segments Segments (Details)
Segments Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Assets | $ 3,130,247 | $ 3,130,247 | $ 2,846,857 | ||
Income statement data: | |||||
Interest income | 20,940 | $ 19,681 | 61,361 | $ 56,980 | |
Interest expense | 3,984 | 3,435 | 11,331 | 8,834 | |
Net interest income (loss) | 16,956 | 16,246 | 50,030 | 48,146 | |
Provision (credit) for loan losses | (1,341) | 651 | (231) | 10,368 | |
Net interest income (loss) after provision (credit) for loan losses | 18,297 | 15,595 | 50,261 | 37,778 | |
Non-interest income: | |||||
Investment management fees | 7,020 | 7,418 | 22,189 | 17,381 | |
Net gain on the sale of investment securities available-for-sale | 0 | 0 | 17 | 1,428 | |
Other non-interest income | 1,044 | 1,872 | 4,547 | 4,082 | |
Total non-interest income | 8,064 | 9,290 | 26,753 | 22,891 | |
Non-interest expense: | |||||
Intangible amortization expense | 390 | 389 | 1,169 | 909 | |
Other operating expenses | 16,911 | 16,284 | 50,816 | 44,040 | |
Total non-interest expense | 17,301 | 16,673 | 51,985 | 44,949 | |
Income (loss) before tax | 9,060 | 8,212 | 25,029 | 15,720 | |
Income tax expense (benefit) | 2,942 | 2,506 | 8,127 | 4,884 | |
Net income | 6,118 | 5,706 | 16,902 | 10,836 | |
Parent and other | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 1,666 | 1,666 | 7,947 | ||
Income statement data: | |||||
Interest income | 57 | 46 | 163 | 46 | |
Interest expense | 554 | 517 | 1,642 | 589 | |
Net interest income (loss) | (497) | (471) | (1,479) | (543) | |
Provision (credit) for loan losses | 0 | 0 | 0 | 0 | |
Net interest income (loss) after provision (credit) for loan losses | (497) | (471) | (1,479) | (543) | |
Non-interest income: | |||||
Investment management fees | (54) | (52) | (143) | (103) | |
Net gain on the sale of investment securities available-for-sale | 0 | 0 | 0 | 0 | |
Other non-interest income | 0 | 0 | 0 | 0 | |
Total non-interest income | (54) | (52) | (143) | (103) | |
Non-interest expense: | |||||
Intangible amortization expense | 0 | 0 | 0 | 0 | |
Other operating expenses | (40) | (32) | (73) | (12) | |
Total non-interest expense | (40) | (32) | (73) | (12) | |
Income (loss) before tax | (511) | (491) | (1,549) | (634) | |
Income tax expense (benefit) | (160) | (138) | (484) | (178) | |
Net income | (351) | (353) | (1,065) | (456) | |
Bank | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 3,063,196 | 3,063,196 | 2,776,421 | ||
Income statement data: | |||||
Interest income | 20,883 | 19,635 | 61,198 | 56,934 | |
Interest expense | 3,430 | 2,918 | 9,689 | 8,245 | |
Net interest income (loss) | 17,453 | 16,717 | 51,509 | 48,689 | |
Provision (credit) for loan losses | (1,341) | 651 | (231) | 10,368 | |
Net interest income (loss) after provision (credit) for loan losses | 18,794 | 16,066 | 51,740 | 38,321 | |
Non-interest income: | |||||
Investment management fees | 0 | 0 | 0 | 0 | |
Net gain on the sale of investment securities available-for-sale | 0 | 0 | 17 | 1,428 | |
Other non-interest income | 1,051 | 1,875 | 4,553 | 4,044 | |
Total non-interest income | 1,051 | 1,875 | 4,570 | 5,472 | |
Non-interest expense: | |||||
Intangible amortization expense | 0 | 0 | 0 | 0 | |
Other operating expenses | 12,015 | 10,847 | 34,958 | 31,547 | |
Total non-interest expense | 12,015 | 10,847 | 34,958 | 31,547 | |
Income (loss) before tax | 7,830 | 7,094 | 21,352 | 12,246 | |
Income tax expense (benefit) | 2,442 | 1,971 | 6,630 | 3,336 | |
Net income | 5,388 | 5,123 | 14,722 | 8,910 | |
Investment management | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 65,385 | 65,385 | $ 62,489 | ||
Income statement data: | |||||
Interest income | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net interest income (loss) | 0 | 0 | 0 | 0 | |
Provision (credit) for loan losses | 0 | 0 | 0 | 0 | |
Net interest income (loss) after provision (credit) for loan losses | 0 | 0 | 0 | 0 | |
Non-interest income: | |||||
Investment management fees | 7,074 | 7,470 | 22,332 | 17,484 | |
Net gain on the sale of investment securities available-for-sale | 0 | 0 | 0 | 0 | |
Other non-interest income | (7) | (3) | (6) | 38 | |
Total non-interest income | 7,067 | 7,467 | 22,326 | 17,522 | |
Non-interest expense: | |||||
Intangible amortization expense | 390 | 389 | 1,169 | 909 | |
Other operating expenses | 4,936 | 5,469 | 15,931 | 12,505 | |
Total non-interest expense | 5,326 | 5,858 | 17,100 | 13,414 | |
Income (loss) before tax | 1,741 | 1,609 | 5,226 | 4,108 | |
Income tax expense (benefit) | 660 | 673 | 1,981 | 1,726 | |
Net income | $ 1,081 | $ 936 | $ 3,245 | $ 2,382 |