Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | TriState Capital Holdings, Inc. | ||
Entity Central Index Key | 1,380,846 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 28,386,228 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 274,976 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash | $ 294 | $ 411 |
Interest-earning deposits with other institutions | 91,097 | 99,551 |
Federal funds sold | 5,285 | 5,748 |
Cash and cash equivalents | 96,676 | 105,710 |
Investment securities available-for-sale | 168,319 | 166,572 |
Investment securities held-to-maturity, at cost (fair value: $48,099 and $40,113, respectively) | 47,290 | 39,591 |
Total investment securities | 215,609 | 206,163 |
Loans held-for-investment | 2,841,284 | 2,400,052 |
Allowance for loan losses | (17,974) | (20,273) |
Loans held-for-investment, net | 2,823,310 | 2,379,779 |
Accrued interest receivable | 7,056 | 6,279 |
Investment management fees receivable | 6,191 | 6,818 |
Federal Home Loan Bank stock | 9,802 | 5,730 |
Goodwill and other intangibles, net | 50,816 | 52,374 |
Office properties and equipment, net | 3,839 | 4,128 |
Bank owned life insurance | 60,019 | 53,323 |
Deferred tax asset, net | 12,186 | 11,874 |
Prepaid expenses and other assets | 17,359 | 14,679 |
Total assets | 3,302,863 | 2,846,857 |
Liabilities: | ||
Deposits | 2,689,844 | 2,336,953 |
Borrowings | 255,000 | 165,000 |
Accrued interest payable on deposits and borrowings | 1,762 | 1,735 |
Accrued acquisition earnout liability | 0 | 17,236 |
Other accrued expenses and other liabilities | 30,280 | 20,543 |
Total liabilities | 2,976,886 | 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 - 29,056,195 and 28,739,779, respectively; Shares outstanding - 28,056,195 and 28,060,888, respectively | 281,412 | 280,895 |
Additional paid-in capital | 10,809 | 9,253 |
Retained earnings | 45,103 | 22,615 |
Accumulated other comprehensive income (loss), net | (1,443) | (627) |
Treasury stock (1,000,000 and 678,891 shares, respectively) | (9,904) | (6,746) |
Total shareholders’ equity | 325,977 | 305,390 |
Total liabilities and shareholders’ equity | $ 3,302,863 | $ 2,846,857 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Shares Authorized | 150,000 | 150,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Shares Authorized | 45,000,000 | 45,000,000 |
Common Stock, Shares Issued | 29,056,195 | 28,739,779 |
Common Stock, Shares Outstanding | 28,056,195 | 28,060,888 |
Treasury Stock, Shares | 1,000,000 | 678,891 |
Investments AFS (cost) | $ 170,337 | $ 167,232 |
Investments HTM (fair value) | $ 48,099 | $ 40,113 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest income: | |||
Loans | $ 79,205 | $ 74,237 | $ 68,602 |
Investments | 3,633 | 3,147 | 3,683 |
Interest-earning deposits | 369 | 529 | 566 |
Total interest income | 83,207 | 77,913 | 72,851 |
Interest expense: | |||
Deposits | 12,888 | 10,611 | 10,981 |
Borrowings | 2,755 | 1,640 | 86 |
Total interest expense | 15,643 | 12,251 | 11,067 |
Net interest income | 67,564 | 65,662 | 61,784 |
Provision for loan losses | 13 | 10,159 | 8,187 |
Net interest income after provision for loan losses | 67,551 | 55,503 | 53,597 |
Non-interest income: | |||
Investment management fees | 29,618 | 25,062 | 0 |
Service charges | 647 | 604 | 482 |
Net gain on the sale of investment securities available-for-sale | 33 | 1,428 | 797 |
Swap fees | 1,551 | 1,178 | 1,056 |
Commitment and other fees | 2,022 | 2,045 | 2,060 |
Unrealized gain (loss) on swaps | (161) | (420) | 210 |
Bank owned life insurance income | 1,696 | 1,441 | 996 |
Other income | 466 | 383 | 197 |
Total non-interest income | 35,872 | 31,721 | 5,798 |
Non-interest expense: | |||
Compensation and employee benefits | 46,136 | 41,048 | 24,556 |
Premises and occupancy costs | 4,549 | 3,931 | 3,190 |
Professional fees | 3,739 | 3,431 | 4,098 |
FDIC insurance expense | 1,988 | 1,928 | 1,463 |
General bank insurance expense | 1,066 | 1,165 | 840 |
State capital shares tax | 1,081 | 1,043 | 1,124 |
Travel and entertainment expense | 2,761 | 2,404 | 1,551 |
Data processing expense | 1,073 | 922 | 793 |
Charitable contributions | 1,021 | 1,151 | 855 |
Intangible amortization expense | 1,558 | 1,299 | 0 |
Acquisition earnout expense | 0 | 1,614 | 0 |
Other operating expenses | 5,071 | 4,391 | 2,345 |
Total non-interest expense | 70,043 | 64,327 | 40,815 |
Income before tax | 33,380 | 22,897 | 18,580 |
Income tax expense | 10,892 | 6,969 | 5,713 |
Net income | $ 22,488 | $ 15,928 | $ 12,867 |
Earnings per common share: | |||
Basic (usd per share) | $ 0.81 | $ 0.56 | $ 0.49 |
Diluted (usd per share) | $ 0.80 | $ 0.55 | $ 0.48 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 22,488 | $ 15,928 | $ 12,867 |
Other comprehensive income (loss): | |||
Change in unrealized holding gains (losses), net of tax expense (benefit) of ($472), $1,121 and ($1,616), respectively | (795) | 2,034 | (2,903) |
Reclassification adjustment for gains included in net income, net of tax expense of $12, $511 and $285, respectively | (21) | (917) | (512) |
Other comprehensive income (loss) | (816) | 1,117 | (3,415) |
Total comprehensive income | $ 21,672 | $ 17,045 | $ 9,452 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Change in unrealized holding gains (losses), tax expense (benefit) | $ (472) | $ 1,121 | $ (1,616) |
Reclassification adjustment for gains included in net income, tax expense | $ 12 | $ 511 | $ 285 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred StockPreferred Stock (Series C) | Common Stock | Additional Paid-in-Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss), net | Treasury Stock |
Beginning Balance at Dec. 31, 2012 | $ 217,724 | $ 46,011 | $ 168,351 | $ 7,871 | $ (6,180) | $ 1,671 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 12,867 | 12,867 | |||||
Other comprehensive income (loss) | (3,415) | (3,415) | |||||
Issuance of common stock (net of offering cost and discounts) | 65,990 | 65,990 | |||||
Conversion of preferred stock to common stock | 0 | (46,011) | 46,011 | ||||
Exercise of stock options | 125 | 179 | (54) | ||||
Stock-based compensation | 654 | 654 | |||||
Ending Balance at Dec. 31, 2013 | 293,945 | 0 | 280,531 | 8,471 | 6,687 | (1,744) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 15,928 | 15,928 | |||||
Other comprehensive income (loss) | 1,117 | 1,117 | |||||
Exercise of stock options | 250 | 364 | (114) | ||||
Purchase of treasury stock | (6,746) | (6,746) | |||||
Stock-based compensation | 896 | 896 | |||||
Ending Balance at Dec. 31, 2014 | 305,390 | 0 | 280,895 | 9,253 | 22,615 | (627) | (6,746) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 22,488 | 22,488 | |||||
Other comprehensive income (loss) | (816) | (816) | |||||
Exercise of stock options | 353 | 517 | (164) | ||||
Purchase of treasury stock | (3,158) | (3,158) | |||||
Redemption of stock options | (229) | (229) | |||||
Stock-based compensation | 1,949 | 1,949 | |||||
Ending Balance at Dec. 31, 2015 | $ 325,977 | $ 0 | $ 281,412 | $ 10,809 | $ 45,103 | $ (1,443) | $ (9,904) |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Offering costs and discounts, common stock | $ 7,093 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Cash Flows from Operating Activities: | |||
Net income | $ 22,488 | $ 15,928 | $ 12,867 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and intangible amortization expense | 2,882 | 2,506 | 1,058 |
Amortization of deferred financing costs | 203 | 118 | 0 |
Provision for loan losses | 13 | 10,159 | 8,187 |
Net decrease in prepaid FDIC insurance expense | 0 | 0 | 7,843 |
Stock-based compensation expense | 1,949 | 896 | 654 |
Net gain on the sale of investment securities available-for-sale | (33) | (1,428) | (797) |
Income from investment securities trading | (20) | 0 | (120) |
Purchase of investment securities trading | (4,963) | 0 | (77,244) |
Proceeds from the sale of investment securities trading | 4,983 | 0 | 77,378 |
Net amortization of premiums and discounts | 752 | 1,337 | 2,186 |
Decrease (increase) in investment management fees receivable | 627 | (1,514) | 0 |
Increase in accrued interest receivable | (777) | (99) | (840) |
Increase (decrease) in accrued interest payable | 27 | 1,214 | (288) |
Bank owned life insurance income | (1,696) | (1,441) | (996) |
Increase in accrued acquisition earnout | 0 | 1,614 | 0 |
Increase (decrease) in income taxes payable | 353 | (160) | 54 |
Decrease (increase) in prepaid income taxes | 762 | (2,514) | 0 |
Deferred tax benefit (provision) | 172 | (1,076) | (1,853) |
Increase in accounts payable and other accrued expenses | 7,263 | 2,149 | 6,167 |
Payment of contingent consideration impacting operations | (1,771) | 0 | 0 |
Other, net | (1,524) | 659 | (1,704) |
Net cash provided by operating activities | 31,690 | 28,348 | 32,552 |
Cash Flows from Investing Activities: | |||
Purchase of investment securities available-for-sale | (36,732) | (52,799) | (154,951) |
Purchase of investment securities held-to-maturity | (14,357) | (24,454) | (5,000) |
Proceeds from the sale of investment securities available-for-sale | 11,792 | 69,555 | 68,230 |
Principal repayments and maturities of investment securities available-for-sale | 21,292 | 21,198 | 48,345 |
Principal repayments and maturities of investment securities held-to-maturity | 6,540 | 10,000 | 0 |
Purchase of bank owned life insurance | (5,000) | (10,000) | (20,000) |
Net redemption (purchase) of Federal Home Loan Bank stock | (4,072) | (3,394) | 90 |
Net increase in loans | (448,236) | (348,057) | (187,991) |
Purchase of loans held-for-investment | 0 | (219,547) | (41,146) |
Proceeds from loan sales | 4,692 | 19,445 | 2,925 |
Additions to office properties and equipment | (1,035) | (971) | (1,017) |
Acquisition, net of acquired cash | 0 | (42,912) | 0 |
Net cash used in investing activities | (465,116) | (581,936) | (290,515) |
Cash Flows from Financing Activities: | |||
Net increase in deposit accounts | 352,891 | 375,248 | 138,326 |
Net increase in Federal Home Loan Bank advances | 90,000 | 110,000 | 0 |
Net proceeds from issuance of subordinated notes payable | 0 | 33,988 | 0 |
Net proceeds from issuance of common stock | 0 | 0 | 65,990 |
Net proceeds from exercise of stock options | 353 | 250 | 125 |
Redemption of stock options | (229) | 0 | 0 |
Payment of contingent consideration | (15,465) | 0 | 0 |
Purchase of treasury stock | (3,158) | (6,746) | 0 |
Net cash provided by financing activities | 424,392 | 512,740 | 204,441 |
Net change in cash and cash equivalents during the period | (9,034) | (40,848) | (53,522) |
Cash and cash equivalents at beginning of the period | 105,710 | 146,558 | 200,080 |
Cash and cash equivalents at end of the period | 96,676 | 105,710 | 146,558 |
Cash paid during the year for: | |||
Interest | 15,413 | 10,918 | 11,355 |
Income taxes | 9,393 | 10,722 | 7,504 |
Acquisition of non-cash assets and liabilities: | |||
Assets acquired | 0 | 6,351 | 0 |
Liabilities assumed | 0 | 1,647 | 0 |
Other non-cash activity: | |||
Loan foreclosures and repossessions | 360 | 0 | 1,122 |
Contingent consideration | 0 | 17,236 | 0 |
Transfer of investment securities available-for-sale to held-to-maturity | 0 | 0 | 20,335 |
Conversion of Preferred Stock to Common Stock [Member] | |||
Other non-cash activity: | |||
Conversion of preferred stock to common stock | $ 0 | $ 0 | $ 46,011 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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. Chartwell was converted from a C corporation to a limited liability corporation (“LLC”), effective June 30, 2015. 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, to be registered 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. On May 14, 2013, the Company completed the issuance and sale of 6,355,000 shares of its common stock, no par value, in its initial public offering of Common Stock, including 855,000 shares sold pursuant to the exercise in full by its underwriters of their option to purchase additional shares from the Company, at a price to the public of $11.50 per share. The shares were offered pursuant to the Company’s Registration Statement on Form S-1. The Company received net proceeds of $66.0 million from the initial public offering, after deducting underwriting discounts and commissions and direct offering expenses. 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. 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. 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 and equity 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 and equity 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 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 December 31, 2015 and 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 have an impact on 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 year ended December 31, 2015 , and there was no allowance for uncollectible accounts recorded as of December 31, 2015 . 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 recoverable at par value, as of December 31, 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. The 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 We compute earnings per common share (“EPS”) in accordance with the two-class method, which requires that any Series C convertible preferred stock outstanding be treated as participating securities in the computation of EPS. The two-class method is an earnings allocation that determines EPS for each class of common stock and participating security. The Company’s basic EPS is computed by dividing net income allocable to common shareholders by the weighted average number of its common shares outstanding for the period, excluding non-vested restricted shares. The Company’s diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in our earnings. Diluted EPS reflects the potential dilution of upon the exercise of stock options and vesting of restricted share 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 shares, 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 previous net gains on treasury share transactions exists. Any deficiency is charged to retained earnings. RECENT ACCOUNTING DEVELOPMENTS In January 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”, which will significantly change the income statement impact of equity investments, and the recognition of changes in fair value of financial liabilities when the fair value option is elected. The ASU is effective for public business entities for interim and annual periods in fiscal years beginning after December 15, 2017. All other entities must apply the new requirements for annual periods in fiscal years beginning after December 15, 2018, and interim periods in fiscal years beginning after December 15, 2019. We are currently evaluating the impact this standard will have on our results of operations and financial position. In September 2015, the FASB issued 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 2015-03, “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 descri |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS On December 16, 2015, TriState Capital Holdings, Inc. entered into a definitive asset purchase agreement to acquire The Killen Group, Inc. in a transaction that is expected to close in the second quarter of 2016, subject to certain client consents and other customary closing conditions. The privately held investment manager has assets under management of approximately $2.3 billion as of December 31, 2015. The transaction value is estimated to be between $30 million and $35 million which includes an initial purchase price of $15 million and an earnout based on December 31, 2016, annual run rate EBITDA (earnings before interest, taxes, depreciation and amortization). On March 5, 2014, TriState Capital Holdings, Inc. through its wholly-owned subsidiary, Chartwell Investment Partners, LLC, completed the acquisition of substantially all of the assets of Chartwell Investment Partners, LP (the “Chartwell acquisition”), an investment management firm with over 150 institutional clients and approximately $7.5 billion in assets under management as of December 31, 2013. Under the terms of the Asset Purchase Agreement substantially all of the assets of Chartwell Investment Partners, LP were acquired for a purchase price consisting of approximately $45 million paid in cash at closing and an estimated earnout arrangement at closing of approximately $15 million to be determined based on the growth in EBITDA of Chartwell in 2014. The earnout was calculated based on a multiple of six times the increase in Chartwell’s annual EBITDA for the year ended December 31, 2014. Based upon the 2014 results for Chartwell a $1.6 million increase to the earnout was accrued and expensed in the fourth quarter of 2014. In the second quarter of 2015, the earnout of $17.2 million was paid out. Up to 60 percent of the earnout could have been paid in common stock of the Company at its option; however the entire earnout was paid in cash. The foregoing summary of the Asset Purchase Agreement and the transactions contemplated by it does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Asset Purchase Agreement, which was included as Exhibit 2.1 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 3, 2014, the terms of which Agreement are incorporated herein by reference. The following table summarizes total consideration paid, assets acquired and liabilities assumed for the Chartwell acquisition at closing: (Dollars in thousands) Chartwell Consideration paid: Cash $ 44,223 Estimated earnout, at closing 15,465 Fair value of total consideration, at closing $ 59,688 Fair value of assets acquired: Cash and cash equivalents $ 1,311 Investment management fees receivable 5,304 Office properties and equipment 90 Deferred tax asset 813 Other assets 144 Total assets acquired 7,662 Fair value of liabilities assumed: Other liabilities 1,647 Total liabilities assumed 1,647 Fair value net identifiable assets acquired 6,015 Long-lived amortizable intangible assets acquired 19,510 Goodwill 34,163 Total net assets purchased $ 59,688 In April 2014, the Company and Chartwell Investment Partners, LP settled one of the three escrow reserves resulting in a $777,000 reduction to the purchase price and a corresponding reduction to goodwill. The fair value of total consideration at December 31, 2014, was $61.5 million , including the increase in the earnout as discussed above. In connection with the Chartwell acquisition, total acquisition-related transaction costs incurred by the Company was approximately $45,000 and $854,000 during the years ended December 31, 2014 and 2013, respectively, which were primarily comprised of legal, advisory and other costs. The goodwill, which is not amortized for book purposes, was assigned to our Investment Management segment and is deductible for tax purposes. The following table presents unaudited pro forma financial information which combines the historical consolidated statements of income of the Company and Chartwell Investment Partners, LP to give effect to the acquisition as if it had occurred on January 1, 2013, for the periods indicated. Pro Forma (unaudited) Years Ended December 31, (Dollars in thousands) 2014 2013 Total revenue $ 100,857 $ 92,592 Net income $ 16,568 $ 15,196 Earnings per common share: Basic $ 0.58 $ 0.58 Diluted $ 0.57 $ 0.57 Total revenue is defined as net interest income and non-interest income, excluding gains and losses on the sale of investment securities available-for-sale. Pro forma adjustments include intangible amortization expense and income tax expense. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 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: December 31, 2015 (Dollars in thousands) Amortized Gross Unrealized Gross Unrealized Estimated Investment securities available-for-sale: Corporate bonds $ 43,952 $ 18 $ 237 $ 43,733 Trust preferred securities 17,579 — 978 16,601 Non-agency mortgage-backed securities 5,756 — 13 5,743 Non-agency collateralized loan obligations 11,843 — 132 11,711 Agency collateralized mortgage obligations 49,544 92 265 49,371 Agency mortgage-backed securities 28,586 270 187 28,669 Agency debentures 4,719 13 — 4,732 Equity securities 8,358 — 599 7,759 Total investment securities available-for-sale 170,337 393 2,411 168,319 Investment securities held-to-maturity: Corporate bonds 19,448 498 84 19,862 Agency debentures 2,453 19 — 2,472 Municipal bonds 25,389 377 1 25,765 Total investment securities held-to-maturity 47,290 894 85 48,099 Total $ 217,627 $ 1,287 $ 2,496 $ 216,418 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 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 The equity securities noted above consist of short-duration, high-yield-bond mutual funds. Income on investment securities included $3.0 million in taxable interest income, $409,000 in non-taxable interest income and $249,000 in dividend income for the year ended December 31, 2015 , as compared to taxable interest income of $2.7 million , non-taxable interest income of $359,000 and dividend income of $110,000 for the year ended December 31, 2014 . There was taxable interest income of $3.3 million , non-taxable interest income of $341,000 and no dividend income on investment securities during the year ended December 31, 2013 . As of December 31, 2015 , the contractual maturities of the debt securities are: December 31, 2015 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Estimated Amortized Estimated Due in one year or less $ 7,058 $ 7,044 $ — $ — Due from one to five years 36,894 36,689 12,078 12,579 Due from five to ten years 11,111 11,030 33,787 34,042 Due after ten years 106,916 105,797 1,425 1,478 Total debt securities $ 161,979 $ 160,560 $ 47,290 $ 48,099 Included in the $105.8 million fair value of debt securities available-for-sale with a contractual maturity due after ten years as of December 31, 2015 , were $93.5 million or 88.4% in floating-rate securities. Included in the $33.8 million amortized cost of debt securities held-to-maturity with a contractual maturity due from five to ten years as of December 31, 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, mortgage-backed securities and collateralized loan obligations. Proceeds from the sale of investment securities available-for-sale during the years ended December 31, 2015 , 2014 and 2013 , were $11.8 million , $69.6 million and $68.2 million , respectively. Gross gains of $50,000 , $1.4 million and $822,000 were realized on these sales and reclassified out of accumulated other comprehensive income (loss) during the years ended December 31, 2015 , 2014 and 2013 , respectively. There were $17,000 , $1,000 and $25,000 of gross losses realized on the sale of securities and reclassified out of accumulated other comprehensive income (loss) during each of the years ended December 31, 2015 , 2014 and 2013 respectively. Investment securities available-for-sale of $6.4 million , as of December 31, 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 temporarily impaired 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 December 31, 2015 and December 31, 2014 , respectively: December 31, 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 $ 23,582 $ 155 $ 6,460 $ 82 $ 30,042 $ 237 Trust preferred securities 8,076 471 8,526 507 16,602 978 Non-agency mortgage-backed securities — — 5,743 13 5,743 13 Non-agency collateralized loan obligations 9,859 132 — — 9,859 132 Agency collateralized mortgage obligations 25,566 151 11,836 114 37,402 265 Agency mortgage-backed securities 1,469 15 10,811 172 12,280 187 Equity securities — — 7,759 599 7,759 599 Total investment securities available-for-sale 68,552 924 51,135 1,487 119,687 2,411 Investment securities held-to-maturity: Corporate bonds 9,863 84 — — 9,863 84 Municipal bonds 571 1 — — 571 1 Total investment securities held-to-maturity 10,434 85 — — 10,434 85 Total temporarily impaired securities $ 78,986 $ 1,009 $ 51,135 $ 1,487 $ 130,121 $ 2,496 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 obligations and agency mortgage-backed securities are primarily the result of interest rate fluctuations. To assess for impairment on its 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 36 positions, aggregating to $2.4 million in unrealized losses that were temporarily impaired as of December 31, 2015 , of which there were 14 positions in an unrealized loss position for more than twelve months totaling $1.5 million . As of December 31, 2014 , there were 27 positions, aggregating to $1.4 million in unrealized losses that were temporarily impaired, of which there were nine positions in an unrealized loss position for more than twelve months totaling $681,000 . Within the held-to-maturity portfolio, there were six positions, aggregating to $85,000 in unrealized losses that were temporarily impaired as of December 31, 2015 , of which there were no positions in an unrealized loss position for more than twelve months. As of December 31, 2014 , there were 5 positions, aggregating to $15,000 in unrealized losses that were temporarily impaired within the held-to-maturity portfolio, of which there were two positions 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 December 31, 2015 and December 31, 2014 . Proceeds from the sale of investment securities trading, comprised of U.S. Treasury Notes, during the years ended December 31, 2015 , 2014 and 2013 , were $5.0 million , $0 and $77.4 million , respectively. Income on investment securities trading during the years ended December 31, 2015 , 2014 and 2013 , was $20,000 , $0 and $120,000 , respectively. |
Loans
Loans | 12 Months Ended |
Dec. 31, 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 was comprised of the following: December 31, 2015 (Dollars in thousands) Commercial Commercial Private Total Loans held-for-investment, before deferred fees $ 634,857 $ 864,863 $ 1,341,988 $ 2,841,708 Less: net deferred loan (fees) costs (625 ) (2,675 ) 2,876 (424 ) Loans held-for-investment, net of deferred fees 634,232 862,188 1,344,864 2,841,284 Less: allowance for loan losses (11,064 ) (5,344 ) (1,566 ) (17,974 ) Loans held-for-investment, net $ 623,168 $ 856,844 $ 1,343,298 $ 2,823,310 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 December 31, 2015 and December 31, 2014 , was $1.3 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 December 31, 2015 , were as follows: $892.0 million in one year or less; $225.8 million in one to three years; and $150.3 million in greater than three years. The reserve for losses on unfunded commitments was $546,000 and $555,000 , as of December 31, 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 April 11, 2014 , we acquired a loan portfolio totaling $219.7 million (including fees and interest receivable) of loans secured by cash and marketable securities that are included within our private banking loans. As of December 31, 2015 and December 31, 2014 , the Company had loans in the process of origination totaling approximately $31.1 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 amount of unfunded commitments related to standby letters of credit as of December 31, 2015 and December 31, 2014 , included in the total listed above, was $89.9 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 December 31, 2015 and December 31, 2014 , $36.8 million and $26.6 million , respectively, (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 year ended December 31, 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 and subsequently repaid. During the year ended December 31, 2014 , there was one standby letter of credit drawn 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. As of December 31, 2015 and December 31, 2014 , 65.3% and 71.3% , respectively, of the loan portfolio was comprised of loans to customers within the Company’s primary market areas of Pennsylvania, Ohio, New Jersey, New York and contiguous states. As a result, the loan portfolio is subject to the general economic conditions within those areas. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained by the Company upon extension of credit is based on management’s credit evaluation of the borrower. The Company does not believe it has significant concentrations of credit risk to any one group of borrowers given its underwriting and collateral requirements. The Company’s loan portfolio is comprised of amortizing loans, where scheduled principal and interest payments are applied as appropriate, as well as interest-only loans. As of December 31, 2015 and December 31, 2014 , interest-only loans represented 67.7% and 63.9% of the loans held-for-investment, respectively. Of the total interest-only loans as of December 31, 2015 , 72.9% were lines of credit, 5.7% were construction loans and the remaining 21.4% were closed-end term loans which will either convert to an amortizing loan with required principal and interest payments or require a balloon payment of the total principal at maturity. Of the total interest-only loans as of December 31, 2014 , 67.7% were lines of credit, 4.1% were construction loans and the remaining 28.2% were closed-end term loans which will either convert to an amortizing loan with required principal and interest payments or require a balloon payment of the total principal at maturity. There were $1.1 billion in loans that are due on demand with no stated maturity and $1.7 billion in loans with stated maturities which have an expected average remaining maturity of approximately four years as of December 31, 2015 , compared to $774.7 million in loans that are due on demand with no stated maturity and $1.6 billion in loans with stated maturities which have an expected average remaining maturity of approximately four years as of December 31, 2014 . 84.9% and 82.8% of the portfolio was comprised of variable rate loans as of December 31, 2015 and December 31, 2014 , respectively. Further, 5.9% of variable rate loans had interest rates equal to their floors, with an average interest rate of 4.59% as of December 31, 2015 , compared to 12.4% of variable rate loans had interest rates equal to their floors, with an average interest rate of 4.83% as of December 31, 2014 . |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 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 at least 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 year ended December 31, 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 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 87.8% and 81.2% of total private banking loans as of December 31, 2015 and 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 portfolio 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 and, for our loans secured by marketable securities, the quality of the collateral. 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 3.0% and 4.3% of loans held-for-investment, as of December 31, 2015 and 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: December 31, 2015 (Dollars in thousands) Commercial Commercial Private Total Non-rated $ 2,017 $ — $ 83,513 $ 85,530 Pass 583,544 858,396 1,259,300 2,701,240 Special mention 31,863 880 — 32,743 Substandard 15,835 2,912 2,051 20,798 Doubtful 973 — — 973 Loans held-for-investment $ 634,232 $ 862,188 $ 1,344,864 $ 2,841,284 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 years ended December 31, 2015 , 2014 and 2013 : Year Ended December 31, 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 (112 ) 589 (464 ) 13 Charge-offs (3,353 ) — — (3,353 ) Recoveries 1,028 — 13 1,041 Balance, end of period $ 11,064 $ 5,344 $ 1,566 $ 17,974 Year Ended December 31, 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 10,596 (349 ) (88 ) 10,159 Charge-offs (9,521 ) — — (9,521 ) Recoveries 545 — 94 639 Balance, end of period $ 13,501 $ 4,755 $ 2,017 $ 20,273 Year Ended December 31, 2013 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 9,950 $ 5,120 $ 2,804 $ 17,874 Provision (credit) for loan losses 7,325 1,642 (780 ) 8,187 Charge-offs (5,508 ) (1,936 ) (13 ) (7,457 ) Recoveries 114 278 — 392 Balance, end of period $ 11,881 $ 5,104 $ 2,011 $ 18,996 Charge-offs of $3.4 million for the year ended December 31, 2015 , included one C&I loan, which were partially offset by recoveries of $1.0 million on four C&I loans and one private banking loan. Charge-offs of $9.5 million for the year ended December 31, 2014 , included six C&I loans, which were partially offset by recoveries of $639,000 on three C&I loans and one private banking loan. Charge-offs of $7.5 million for the year ended December 31, 2013 , included three C&I loans, one CRE loan and one private banking loan, which were partially offset by recoveries of $392,000 on three C&I loans and three CRE loans. The following tables present the age analysis of past due loans segregated by class of loan: December 31, 2015 (Dollars in thousands) 30-59 Days 60-89 Days Loans Past Total Current Total Commercial and industrial $ — $ — $ 976 $ 976 $ 633,256 $ 634,232 Commercial real estate — — 2,912 2,912 859,276 862,188 Private banking — — 1,431 1,431 1,343,433 1,344,864 Loans held-for-investment $ — $ — $ 5,319 $ 5,319 $ 2,835,965 $ 2,841,284 December 31, 2014 (Dollars in thousands) 30-59 Days 60-89 Days Loans Past Total 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 Year Ended December 31, 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 $ 11,797 $ 19,204 $ 3,800 $ 15,331 $ — Commercial real estate — — — — — Private banking 745 864 745 824 — Total with a related allowance recorded 12,542 20,068 4,545 16,155 — Without a related allowance recorded: Commercial and industrial 513 1,789 — 838 29 Commercial real estate 2,912 9,067 — 3,108 — Private banking 1,203 1,448 — 1,202 — Total without a related allowance recorded 4,628 12,304 — 5,148 29 Total: Commercial and industrial 12,310 20,993 3,800 16,169 29 Commercial real estate 2,912 9,067 — 3,108 — Private banking 1,948 2,312 745 2,026 — Total $ 17,170 $ 32,372 $ 4,545 $ 21,303 $ 29 As of and for the Year 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 As of and for the Year Ended December 31, 2013 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial and industrial $ 15,157 $ 23,126 $ 4,658 $ 13,261 $ — Commercial real estate — — — — — Private banking 814 869 814 874 — Total with a related allowance recorded 15,971 23,995 5,472 14,135 — Without a related allowance recorded: Commercial and industrial 1,046 2,264 — 1,473 6 Commercial real estate 3,498 9,705 — 4,170 — Private banking 305 295 — 25 — Total without a related allowance recorded 4,849 12,264 — 5,668 6 Total: Commercial and industrial 16,203 25,390 4,658 14,734 6 Commercial real estate 3,498 9,705 — 4,170 — Private banking 1,119 1,164 814 899 — Total $ 20,820 $ 36,259 $ 5,472 $ 19,803 $ 6 Impaired loans as of December 31, 2015 and December 31, 2014 , were $17.2 million and $30.8 million , respectively. There was no interest income recognized while these loans were on non-accrual status for the years ended December 31, 2015 , 2014 and 2013 . As of December 31, 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 December 31, 2015 , there were specific reserves totaling $4.5 million , which were included in the $18.0 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 $4.6 million as of December 31, 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: December 31, 2015 (Dollars in thousands) Commercial Commercial Private Total Allowance for loan losses: Individually evaluated for impairment $ 3,800 $ — $ 745 $ 4,545 Collectively evaluated for impairment 7,264 5,344 821 13,429 Total allowance for loan losses $ 11,064 $ 5,344 $ 1,566 $ 17,974 Loans held-for-investment: Individually evaluated for impairment $ 12,310 $ 2,912 $ 1,948 $ 17,170 Collectively evaluated for impairment 621,922 859,276 1,342,916 2,824,114 Loans held-for-investment $ 634,232 $ 862,188 $ 1,344,864 $ 2,841,284 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) December 31, December 31, Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring: Accruing interest $ 510 $ 528 Non-accrual 12,894 14,107 Total troubled debt restructurings $ 13,404 $ 14,635 Of the non-accrual loans as of December 31, 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 December 31, 2015 . The aggregate recorded investment of these loans was $13.4 million . There were unused commitments of $1.7 million on these loans as of December 31, 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 recorded investment 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 was one loan for $973,000 that was modified as a TDR within twelve months of the corresponding balance sheet date with a payment default during the year ended December 31, 2015 . This loan was already on non-accrual status and adequately reserved as of December 31, 2015 . There were no payment defaults, during the years ended December 31, 2014 and 2013 , for loans modified as TDRs within twelve months of the corresponding balance sheet dates. The financial effects of our modifications made during the years ended December 31, 2015 , 2014 and 2013 , were as follows: Year Ended December 31, 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 6,849 973 1,500 172 Total 4 $ 11,346 $ 973 $ 2,333 $ 172 Year Ended December 31, 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 $ 4,620 $ 1,968 $ 1,120 Private Banking: Extended term, reduced interest rate 1 1,266 1,094 100 — Total 2 $ 6,484 $ 5,714 $ 2,068 $ 1,120 Year Ended December 31, 2013 (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 1 $ 2,691 $ 2,347 $ 1,100 $ 1,100 Advanced additional funds 2 6,957 8,120 2,000 1,357 Private Banking: Forgave principal 1 210 197 — — Total 4 $ 9,858 $ 10,664 $ 3,100 $ 2,457 Other Real Estate Owned During the year ended December 31, 2015 , we acquired a property related to an impaired loan for $360,000 based on the appraised value, less estimated selling costs. For the years ended December 31, 2015 and December 31, 2014 , the balance of the other real estate owned portfolio was $1.7 million and $1.4 million , respectively. There were two residential mortgage loans totaling $1.2 million that were in the process of foreclosure as of December 31, 2015 , and no residential mortgage loans in the process of foreclosure as of December 31, 2014 . |
Federal Home Loan Bank Stock
Federal Home Loan Bank Stock | 12 Months Ended |
Dec. 31, 2015 | |
Federal Home Loan Bank Stock [Abstract] | |
FEDERAL HOME LOAN BANK STOCK | FEDERAL HOME LOAN BANK STOCK The Company is a member of the FHLB system. As a member of the FHLB Pittsburgh, the Company must maintain a minimum investment in the capital stock of the FHLB in an amount equal to 4.00% of its outstanding advances, if any, and 0.10% of its membership asset value, as defined, with the FHLB. The FHLB has the ability to change the calculation of the required stock investment at any time. The Company held stock totaling $9.8 million and $5.7 million at December 31, 2015 and 2014 , respectively. At December 31, 2015 , $9.4 million of stock was required based on the Bank’s membership asset value, as defined, of approximately $601.5 million and $220.0 million in outstanding advances. The Company received dividends from its holdings in FHLB capital stock of $389,000 , $172,000 and $19,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill of $34.2 million was recorded during the year ended December 31, 2014, for the Chartwell acquisition. In April 2014, the Company and Chartwell Investment Partners, LP settled one of the three escrow reserves resulting in a $777,000 reduction to the purchase price and a corresponding reduction to goodwill. Refer to Note 2 , Business Combinations , for further details on this acquisition. The following table presents the change in goodwill for the years ended December 31, 2015 and 2014 : (Dollars in thousands) 2015 2014 Balance at beginning of period $ 34,163 $ — Additions — 34,163 Balance at end of period $ 34,163 $ 34,163 The Company determined the amount of identifiable intangible assets based upon an independent valuation. The following table presents the change in intangible assets for the years ended December 31: (Dollars in thousands) 2015 2014 Gross carrying amount at beginning of period $ 18,211 $ — Additions — 19,510 Accumulated amortization (1,558 ) (1,299 ) Balance at end of period $ 16,653 $ 18,211 The following table presents the ending balance of intangible assets as of the dates presented and original, estimated useful life by class: (Dollars in thousands) December 31, 2015 December 31, 2014 Weighted Average Estimated Trade name $ 1,081 $ 1,140 240 Client Relationships: Sub-advisory client list 9,679 10,509 162 Separate managed accounts client list 894 1,004 120 Other institutional client list 4,958 5,499 132 Non-compete agreements 41 59 48 Total intangible assets $ 16,653 $ 18,211 155 Intangible amortization expense on finite-lived intangible assets totaled $1.6 million and $1.3 million for the year ended December 31, 2015 and 2014 . There was no intangible amortization expense for the year ended December 31, 2013 . The following is a summary of the expected intangible amortization expense for finite-lived intangibles assets, assuming no new additions, for each of the five years following December 31, 2015 : (Dollars in thousands) Amount 2016 $ 1,558 2017 1,558 2018 1,543 2019 1,540 2020 1,540 Thereafter 8,914 Total $ 16,653 |
Office Properties and Equipment
Office Properties and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant, Equipment and Operating Leases [Abstract] | |
OFFICE PROPERTIES AND EQUIPMENT | OFFICE PROPERTIES AND EQUIPMENT Following is a summary of office properties and equipment by major classification: December 31, (Dollars in thousands) 2015 2014 Furniture, fixtures and equipment $ 7,890 $ 7,208 Leasehold improvements 3,953 3,600 Total, at cost 11,843 10,808 Less: accumulated depreciation (8,004 ) (6,680 ) Net office properties and equipment $ 3,839 $ 4,128 The Company rents office space in its six office locations which are accounted for as operating leases. The remaining lease terms have expirations from 2016 to 2022 and provide for one or more renewal options. All of the leases provide for annual rent escalations and payment of certain operating expenses applicable to the leased space. The Company records rent expense on a straight-line basis over the term of the lease. Rent expense was $2.3 million , $1.9 million and $1.5 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Depreciation expense was $1.3 million , $1.2 million and $1.1 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. At December 31, 2015 , future minimum lease payments were as follows: (Dollars in thousands) December 31, 2016 $ 1,984 2017 1,782 2018 1,678 2019 1,694 2020 1,675 Thereafter 858 Total $ 9,671 In April 2015, the Company entered into a lease for new space for the New Jersey office for a period of 62 months, beginning September 19, 2015, which coincided with the expiration of the original lease for that office. In August 2014, the Company entered into a lease amendment for additional space for the Pittsburgh office for a period of 74 months, beginning January 1, 2015. In March 2014, the operating lease for the New York office location was renewed for a period of 90 months. In conjunction with the initial operating lease for the Pittsburgh location, the Bank received an allowance for leasehold improvements of $1.1 million . The allowance is being recognized as a reduction to rent expense over the life of the lease. The amount remaining as of December 31, 2015 , of the total unrecognized allowance for leasehold improvements was $271,000 . Rent expense is recorded on a straight-line basis over the term of the lease and the net deferred rent as of December 31, 2015 , was $937,000 . |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS Interest Rate Range as of Weighted Average Balance as of (Dollars in thousands) December 31, December 31, December 31, December 31, December 31, Demand and savings accounts: Noninterest-bearing checking accounts — — — $ 159,859 $ 177,606 Interest-bearing checking accounts 0.05 to 0.50% 0.42 % 0.42 % 136,037 75,679 Money market deposit accounts 0.05 to 1.50% 0.50 % 0.39 % 1,464,279 1,244,921 Total demand and savings accounts 1,760,175 1,498,206 Time deposits 0.05 to 1.39% 0.78 % 0.69 % 929,669 838,747 Total deposit balance $ 2,689,844 $ 2,336,953 Average rate paid on interest-bearing accounts 0.60 % 0.51 % As of December 31, 2015 and December 31, 2014 , the Bank had total brokered deposits of $1.1 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 $496.5 million and $419.1 million as of December 31, 2015 and December 31, 2014 , respectively. As of December 31, 2015 and December 31, 2014 , time deposits with balances of $100,000 or more, excluding brokered certificates of deposit, amounted to $409.2 million and $376.6 million , respectively. Time deposits with balances of $250,000 or more, excluding brokered certificates of deposit, amounted to $142.7 million and $81.5 million as of December 31, 2015 and December 31, 2014 , respectively. The contractual maturity of time deposits, including brokered deposits, is as follows: (Dollars in thousands) December 31, December 31, 12 months or less $ 645,004 $ 722,752 12 months to 24 months 219,333 111,865 24 months to 36 months 65,332 4,130 36 months to 48 months — — 48 months to 60 months — — Over 60 months — — Total $ 929,669 $ 838,747 Interest expense on deposits is as follows: Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Interest-bearing checking accounts $ 439 $ 229 $ 4 Money market deposit accounts 5,687 4,228 3,756 Time deposits 6,762 6,154 7,221 Total interest expense on deposits $ 12,888 $ 10,611 $ 10,981 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS As of December 31, 2015 and December 31, 2014 , borrowings were comprised of the following: December 31, 2015 December 31, 2014 (Dollars in thousands) Interest Rate Ending Balance Maturity Date Interest Rate Ending Balance Maturity Date FHLB borrowing: Issued 12/31/2015 0.51 % 170,000 1/4/2016 — Issued 7/29/2015 0.61 % 25,000 8/4/2016 — Issued 7/29/2015 0.72 % 25,000 11/3/2016 — Issued 12/31/2014 — 0.27 % 30,000 1/2/2015 Issued 5/5/2014 — 0.33 % 25,000 2/5/2015 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 Subordinated notes payable 5.75 % 35,000 7/1/2019 5.75 % 35,000 7/1/2019 Total $ 255,000 $ 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 December 31, 2015 , the Bank’s borrowing capacity is based on the information provided in the September 30, 2015 , QCR filing. As of December 31, 2015 , the Bank had securities held in safekeeping at the FHLB with a fair value of $6.4 million , combined with pledged loans of $654.7 million , for a borrowing capacity of $464.1 million , of which $220.0 million was 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 December 31, 2015 , the full amount of these established lines were available to the Bank. The Holding Company established an unsecured line of credit of $25.0 million , effective December 29, 2015 , with Texas Capital Bank. As of December 31, 2015 , the full amount of this established line was available. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The income tax provision reconciled to taxes computed at the statutory federal rate is as follows: Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Tax provision at statutory rate $ 11,683 $ 8,014 $ 6,503 Meals and entertainment 103 84 57 Dues and subscriptions 116 123 102 Keyman life insurance — 12 25 Bank owned life insurance (593 ) (504 ) (348 ) State tax expense, net of federal benefit 951 407 134 Adjustments to prior year tax (60 ) (51 ) 12 Tax exempt income, net of disallowed interest (160 ) (145 ) (109 ) Unrecognized tax benefits — 11 110 Investment tax credit (1,198 ) (1,022 ) (909 ) Other 50 40 136 Income tax provision $ 10,892 $ 6,969 $ 5,713 The investment tax credit in the table above relates to transactions for the financing of solar energy facilities, which included five transactions in 2015, four in 2014 and three in 2013. These transactions provided federal and state tax credits for the 2015, 2014 and 2013 tax years. The financing is accounted for as a direct financing lease included within the C&I loan portfolio. The income tax provision consists of: Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Current income tax provision - federal $ 9,917 $ 7,549 $ 7,823 Current income tax provision (benefit) - state 803 496 (257 ) Deferred tax provision (benefit) - federal 225 (735 ) (1,804 ) Deferred tax (benefit) - state (53 ) (341 ) (49 ) Income tax provision $ 10,892 $ 6,969 $ 5,713 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2015 and 2014 , are as follows: December 31, (Dollars in thousands) 2015 2014 Deferred tax assets: Net operating loss - state $ 6 $ 73 Start-up expenses 163 190 Stock compensation 2,709 2,606 Compensation related accruals 5,145 2,897 Leasehold improvement 100 133 Allowance for loan loss 6,639 7,419 Long-term lease 346 261 Reserve for unfunded commitments 202 203 Supplemental executive retirement plan 770 473 Transaction costs 277 295 Intangibles 183 81 Earnout liability non-purchase accounting 653 671 Unrealized loss on investments 846 362 Other 417 198 Gross deferred tax assets 18,456 15,862 Deferred tax liabilities: Office properties and equipment (2,585 ) (1,772 ) Deferred loan costs (2,192 ) (1,578 ) Goodwill (1,169 ) (393 ) State capital shares tax liability (324 ) (245 ) Gross deferred tax liability (6,270 ) (3,988 ) Net deferred tax asset $ 12,186 $ 11,874 Management believes that, as of December 31, 2015 , it is more likely than not that the net deferred tax asset will be fully realized upon the generation of future taxable income. The change in the net deferred tax asset for the years ended December 31, 2015 and 2014 , is detailed as follows: December 31, (Dollars in thousands) 2015 2014 Deferred tax benefit (expense) $ (172 ) $ 1,076 Deferred tax - other comprehensive income (loss) 484 (610 ) Deferred tax asset established related to acquisitions — 813 Change in net deferred tax asset $ 312 $ 1,279 We consider uncertain tax positions that the Company has taken or expects to take on a tax return. We recognize interest accrued and penalties (if any) related to unrecognized tax benefits in income tax expense. Federal tax years 2013 through 2015 remain subject to examination, as of December 31, 2015 , while tax years 2012 through 2015 remain subject to examination by state taxing jurisdictions. No federal or state income tax return examinations are currently in progress. A reconciliation of the beginning and ending gross amounts of unrecognized tax benefits is as follows: December 31, (Dollars in thousands) 2015 2014 2013 Beginning of year balance $ — $ 110 $ — Increases in prior period tax positions 142 11 110 Decreases in prior period tax positions — — — Increases in current period tax positions 211 — — Settlements — (121 ) — End of year balance $ 353 $ — $ 110 The total estimated unrecognized tax benefit that, if recognized, would affect the Company’s effective tax rate was approximately $230,000 , $0 and $110,000 as of December 31, 2015 , 2014 and 2013 , respectively. The impact of interest and penalties was immaterial to the Company’s financial statements for the years ended December 31, 2015 , 2014 and 2013 . The Company does not expect changes in its unrecognized tax benefits in the next twelve months to have a material impact on its financial statements. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 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 December 31, 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, CEIT 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 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 December 31, 2015 and December 31, 2014 : December 31, 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 $ 326,378 13.88 % $ 188,176 8.00 % N/A N/A Bank $ 310,624 13.35 % $ 186,077 8.00 % $ 232,596 10.00 % Tier 1 risk-based capital ratio Company $ 287,072 12.20 % $ 141,132 6.00 % N/A N/A Bank $ 292,234 12.56 % $ 139,558 6.00 % $ 186,077 8.00 % Common equity tier 1 risk-based capital ratio Company $ 287,072 12.20 % $ 105,849 4.50 % N/A N/A Bank $ 292,234 12.56 % $ 104,668 4.50 % $ 151,187 6.50 % Tier 1 leverage ratio Company $ 287,072 9.05 % $ 126,932 4.00 % N/A N/A Bank $ 292,234 9.29 % $ 125,870 4.00 % $ 157,338 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 | 12 Months Ended |
Dec. 31, 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. During the years ended December 31, 2015 , 2014 and 2013 , 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 $683,000 , $600,000 and $396,000 for the years ended December 31, 2015 , 2014 and 2013 , 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 years ended December 31, 2015 , 2014 and 2013 , the Company recorded expense related to SERP of $791,000 , $657,000 and $637,000 , respectively, utilizing a discount rate of 2.98% , 3.56% and 2.99% , respectively. The recorded liability related to the SERP plan was $2.1 million and $1.3 million as of December 31, 2015 and December 31, 2014 , respectively. |
Stock Transactions
Stock Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
STOCK TRANSACTIONS | STOCK TRANSACTIONS On May 14, 2013, the Company completed the issuance and sale of 6,355,000 shares of its common stock, no par value, in its initial public offering of Common Stock, including 855,000 shares sold pursuant to the exercise in full by its underwriters of their option to purchase additional shares from the Company, at a price to the public of $11.50 per share. The shares were offered pursuant to the Company’s Registration Statement on Form S-1. The Company received net proceeds of $66.0 million from the initial public offering, after deducting underwriting discounts and commissions and direct offering expenses. On August 10, 2012, the Company issued an aggregate of 48,780.488 shares of its Series C preferred stock at a price of $1,025.00 per share, purchased by LM III TriState Holdings LLC ( 69.1607% ) and LM III-A TriState Holdings LLC ( 30.8393% ) (combined the “Lovell Minnick funds”) which are investment funds managed by Lovell Minnick Partners LLC. Net proceeds totaled $46.0 million , net of offering costs of $4.0 million . The Series C preferred stock was convertible into shares of the Company’s common stock, with a conversion ratio of 100 shares of common stock for each share of Series C preferred stock (subject to adjustment in certain events, including combinations or divisions of common stock), by the holder at any time provided that, upon conversion, the holders of the Series C preferred stock will not own or control in the aggregate more than 24.9% of our voting securities. Series C preferred shareholders were entitled to participate in dividends with common shareholders on an “as if converted” basis. In connection with the closing of the initial public offering, on May 14, 2013, the Company converted all of its 48,780.488 outstanding shares of Series C preferred stock to shares of common stock, resulting in the issuance of 4,878,049 shares of common stock upon conversion. 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 year ended December 31, 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 table below shows the changes in the common and preferred shares during the periods indicated. Number of Number of Balance, December 31, 2012 17,444,730 48,780 Issuance of common stock 6,355,000 — Conversion of preferred stock to common stock 4,878,049 (48,780 ) Exercise of stock options 12,500 — Balance, December 31, 2013 28,690,279 — Issuance of restricted common stock 27,000 — Exercise of stock options 22,500 — Purchase of treasury stock (678,891 ) — Balance, December 31, 2014 28,060,888 — Issuance of restricted common stock 282,916 — Forfeitures of restricted common stock (4,000 ) — Exercise of stock options 37,500 — Purchase of treasury stock (321,109 ) — Balance, December 31, 2015 28,056,195 — |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, (Dollars in thousands, except per share data) 2015 2014 2013 Net income available to common shareholders $ 22,488 $ 15,928 $ 12,867 Less: earnings allocated to participating stock — — 867 Net income available to common shareholders, after $ 22,488 $ 15,928 $ 12,000 Basic shares 27,771,345 28,628,631 24,589,811 Preferred shares - dilutive — — 1,777,481 Non-vested restricted shares - dilutive 56,364 82 1,807 Stock options - dilutive 409,744 389,193 373,924 Diluted shares 28,237,453 29,017,906 26,743,023 Earnings per common share: Basic $ 0.81 $ 0.56 $ 0.49 Diluted $ 0.80 $ 0.55 $ 0.48 Years Ended December 31, 2015 2014 2013 Anti-dilutive shares (1) 721,893 779,732 590,500 (1) Included stock options and non-vested restricted shares not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive. |
Stock-Based Compensation Progra
Stock-Based Compensation Programs | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PROGRAMS | STOCK-BASED COMPENSATION PROGRAMS The Company’s 2006 Stock Option Plan (the “2006 Plan”) provided for the granting of incentive and non-qualifying stock options to the Company’s key employees, key contractors and outside directors at the discretion of the Board of Directors. The Omnibus Incentive Plan (the “Omnibus Plan”), which was approved by TriState Capital’s shareholders on May 20, 2014, provides for the granting of incentive and non-qualifying stock options, stock appreciation rights, restricted shares, restricted stock units, dividend equivalent rights and other equity-based or equity-related awards to the Company’s key employees, key contractors and outside directors at the discretion of the Board of Directors. The Omnibus Plan, upon its approval, replaced the 2006 Plan. The total number of shares of common stock that may be granted under the Omnibus Plan is the number of authorized shares of common stock of TriState Capital remaining available under the 2006 Plan as of the date of shareholder approval, plus any shares of common stock issued pursuant to the 2006 Plan that were forfeited, redeemed, expired or otherwise terminated. The shares reserved for grants under the 2006 Plan shall no longer be available for grants under that plan, but shall instead be reserved for grants under the Omnibus Plan. The total common shares, authorized by shareholders of the Company, relating to stock-based awards which may be issued upon the grant or exercise of stock-based awards was 4,000,000 , as of December 31, 2015 , under both the 2006 Plan and the Omnibus Plan (combined the “Plans”). As of December 31, 2015 , the Company has issued non-qualifying stock options and restricted shares and the aggregate awards outstanding were 2,865,309 under both of the Plans. As of December 31, 2015 , there were 1,062,191 additional awards available for the Company to grant under the Omnibus Plan. The Company’s stock option grants contain terms that provide for a graded vesting schedule whereby portions of the options vest in increments over the requisite service period. Options issued under the Plans typically vest either 50 percent after two and one-half years following the award date and the remaining 50 percent five years following the award date; or 100 percent after five years following the award date. Restricted shares under the Omnibus Plan typically vest 100 percent after three years following the award date. The Company recognizes compensation expense for awards with graded vesting schedules on a straight-line basis over the requisite service period for the entire grant. The Company’s compensation expense for all awards was $1.9 million , $896,000 and $654,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively. In October 2015, the Company’s Board of Directors approved a stock option redemption program to allow for outstanding and vested stock option awards granted in 2007 to be redeemed by the option holder at the closing day’s stock price less the option exercise price. This program was available for option holders to participate from November 2 through December 31, 2015. During the year ended December 31, 2015 , there were 77,000 options redeemed for $229,000 , which was recorded as a reduction to additional paid-in capital. Stock Options The fair value of each option award is estimated on the date of the grant using the Black-Scholes option pricing model and the weighted average assumptions in the following table. Expected term was calculated utilizing the simplified method because the Company has limited historical exercise behavior. Since the Company is newly publicly traded and there is not enough trading history, expected volatility is computed based on median historical volatility of similar entities with publicly traded shares. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The computation assumes that there will be no dividends paid to common shareholders during the contractual life of the options. December 31, 2015 2014 2013 Valuation Assumptions: Expected dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 45.4 % 35.3 % 37.3 % Expected term (years) 6.9 6.9 6.9 Risk-free interest rate 1.6 % 2.3 % 1.9 % Stock option activity during the periods indicated is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Balance, December 31, 2012 2,193,000 $ 9.97 5.69 Granted 119,000 11.56 Exercised 12,500 10.00 Forfeited 33,000 11.16 Expired — — Balance, December 31, 2013 2,266,500 $ 10.03 4.94 Granted 309,732 12.04 Exercised 22,500 11.11 Forfeited 44,000 9.66 Expired — — Balance, December 31, 2014 2,509,732 $ 10.28 4.52 Granted 205,661 10.39 Exercised 37,500 9.41 Forfeited 41,500 10.75 Redeemed 77,000 10.00 Expired — — Balance, December 31, 2015 2,559,393 $ 10.30 3.98 Exercisable as of December 31, 2013 1,625,000 $ 10.08 3.56 Exercisable as of December 31, 2014 1,693,500 $ 10.04 2.75 Exercisable as of December 31, 2015 1,789,750 $ 9.99 2.28 The weighted average grant date fair value of options granted during the years ended December 31, 2015 , 2014 and 2013 , was $4.98 , $4.90 and $4.80 , respectively. The weighted average grant date fair value of options exercised during the years ended December 31, 2015 , 2014 and 2013 was $4.38 , $5.08 and $4.30 respectively. A summary of the status of the Company’s non-vested options as of and changes during the years ended December 31, 2015 , 2014 and 2013 , is presented below: Non-vested options: Number of Options Weighted Average Grant-Date Balance, December 31, 2012 674,500 $ 4.88 Granted 119,000 4.80 Vested 119,000 4.60 Forfeited 33,000 5.40 Balance, December 31, 2013 641,500 $ 4.89 Granted 309,732 4.90 Vested 91,000 5.12 Forfeited 44,000 4.84 Balance, December 31, 2014 816,232 $ 4.87 Granted 205,661 4.98 Vested 210,750 5.91 Forfeited 41,500 4.85 Balance, December 31, 2015 769,643 $ 4.93 As of December 31, 2015 , there was $2.6 million of total unrecognized compensation cost related to non-vested options granted under the Plans and the unrecognized compensation cost is expected to be recognized over a weighted average period of 3.1 years. Restricted Shares A summary of the status of the Company’s non-vested restricted shares as of and changes during the years ended December 31, 2015 , 2014 and 2013 , is presented below: Non-vested restricted shares: Number of Shares Weighted Average Grant-Date Balance, December 31, 2012 — $ — Granted — — Vested — — Forfeited — — Balance, December 31, 2013 — $ — Granted 27,000 10.66 Vested — — Forfeited — — Balance, December 31, 2014 27,000 $ 10.66 Granted 282,916 10.54 Vested — — Forfeited 4,000 10.57 Balance, December 31, 2015 305,916 $ 10.55 As of December 31, 2015 , there was $2.3 million of total unrecognized compensation cost related to non-vested restricted shares granted under the Plans and the unrecognized compensation cost is expected to be recognized over a weighted average period of 2.2 years. |
Derivatives and Hedging Activit
Derivatives and Hedging Activity | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES 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 December 31, 2015 and December 31, 2014 : Asset Derivatives Liability Derivatives as of December 31, 2015 as of December 31, 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 $ 229 Derivatives not designated as hedging instruments: Interest rate products Other assets $ 8,662 Other liabilities $ 9,363 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 December 31, 2015 , the Company had four interest rate swaps, with a notional amount of $3.2 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 the years ended December 31, 2015 and 2014 . There were no counterparty default losses on derivatives for the years ended December 31, 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 year ended December 31, 2015 , the Company recognized a net gain of $3,000 in non-interest income related to hedge ineffectiveness as compared to net gains of $10,000 and $14,000 during the years ended December 31, 2014 and 2013 , respectively. The Company also recognized a decrease to interest income of $294,000 for the year ended December 31, 2015 , 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 as compared to a decrease to interest income of $321,000 and $434,000 during the years ended December 31, 2014 and 2013 , respectively. 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 December 31, 2015 , the Company had 140 derivative transactions with an aggregate notional amount of $537.9 million related to this program. During the year ended December 31, 2015 , the Company recognized a net loss of $174,000 related to changes in fair value of the derivatives not designated in hedging relationships, as compared to a net loss of $423,000 and a net gain of $154,000 during the years ended December 31, 2014 and 2013 , respectively. 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: Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Derivatives designated as hedging instruments: Location of Gain (Loss) Recognized in Amount of Gain (Loss) Interest rate products Interest income $ (294 ) $ (321 ) $ (434 ) Non-interest income 3 10 14 Total $ (291 ) $ (311 ) $ (420 ) Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Amount of Gain (Loss) Interest rate products Non-interest income $ (174 ) $ (423 ) $ 154 Total $ (174 ) $ (423 ) $ 154 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 December 31, 2015 , the termination value of derivatives, including accrued interest, in a net liability position related to these agreements was $9.5 million . As of December 31, 2015 , the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $11.1 million . If the Company had breached any of these provisions as of December 31, 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 | 12 Months Ended |
Dec. 31, 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 December 31, 2015 and December 31, 2014 : December 31, 2015 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets / Financial assets: Investment securities available-for-sale: Corporate bonds $ — $ 43,733 $ — $ 43,733 Trust preferred securities — 16,601 — 16,601 Non-agency mortgage-backed securities — 5,743 — 5,743 Non-agency collateralized loan obligations — 11,711 — 11,711 Agency collateralized mortgage obligations — 49,371 — 49,371 Agency mortgage-backed securities — 28,669 — 28,669 Agency debentures — 4,732 — 4,732 Equity securities 7,759 — — 7,759 Interest rate swaps — 8,662 — 8,662 Total financial assets 7,759 169,222 — 176,981 Financial liabilities: Interest rate swaps — 9,592 — 9,592 Total financial liabilities $ — $ 9,592 $ — $ 9,592 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, 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 December 31, 2015 and December 31, 2014 : December 31, 2015 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Loans measured for impairment, net $ — $ — $ 12,625 $ 12,625 Other real estate owned — — 1,730 1,730 Total assets $ — $ — $ 14,355 $ 14,355 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 December 31, 2015 , the Company recorded $4.5 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 $5.4 million , and as a result of adjusting the value based upon the discounted cash flow to $7.2 million , as of December 31, 2015 . As of December 31, 2014 , the Company recorded $5.6 million of specific 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 flow 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 December 31, 2015 and December 31, 2014 : December 31, 2015 (Dollars in thousands) Fair Value Valuation Techniques (1) Significant Unobservable Inputs Weighted Average Discount Rate Loans measured for impairment, net $ 5,428 Appraisal value or Liquidation analysis Discount due 14 % Loans measured for impairment, net $ 7,197 Discounted cash flow Discount due to restructured nature of operations 7 % Other real estate owned $ 1,730 Appraisal value Discount due to salability conditions 10 % (1) Fair value is generally determined through independent appraisals or liquidation analysis 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 Discount Rate Loans measured for impairment, net $ 7,559 Appraisal value or Market multiple 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 to salability conditions 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: December 31, 2015 December 31, 2014 (Dollars in thousands) Fair Value Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents 1 $ 96,676 $ 96,676 $ 105,710 $ 105,710 Investment securities available-for-sale: debt 2 160,560 160,560 158,534 158,534 Investment securities available-for-sale: equity 1 7,759 7,759 8,038 8,038 Investment securities held-to-maturity 2 47,290 48,099 39,591 40,113 Loans held-for-investment, net 3 2,823,310 2,813,278 2,379,779 2,376,075 Accrued interest receivable 2 7,056 7,056 6,279 6,279 Investment management fees receivable 2 6,191 6,191 6,818 6,818 Federal Home Loan Bank stock 2 9,802 9,802 5,730 5,730 Bank owned life insurance 2 60,019 60,019 53,323 53,323 Interest rate swaps 2 8,662 8,662 6,327 6,327 Other real estate owned 3 1,730 1,730 1,370 1,370 Financial liabilities: Deposits 2 $ 2,689,844 $ 2,690,693 $ 2,336,953 $ 2,337,734 Borrowings 2 255,000 255,179 165,000 165,163 Interest rate swaps 2 9,592 9,592 7,291 7,291 During the years ended December 31, 2015 , 2014 and 2013 , 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 December 31, 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 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) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table shows the changes in accumulated other comprehensive income (loss), for the periods presented: Years Ended December 31, 2015 2014 2013 (Dollars in thousands) Unrealized Gains Unrealized Gains Unrealized Gains Balance, beginning of period $ (627 ) $ (1,744 ) $ 1,671 Change in unrealized holding gains (losses) (795 ) 2,034 (2,903 ) Gains reclassified from other comprehensive income (loss) (1) (21 ) (917 ) (512 ) Net other comprehensive income (loss) (816 ) 1,117 (3,415 ) Balance, end of period $ (1,443 ) $ (627 ) $ (1,744 ) (1) Consists of net realized gains on sales of investment securities available-for-sale of $33,000 , $1.4 million and $797,000 , net of income tax expense of $12,000 , $511,000 and $285,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Certain directors and executive officers have loan and deposit accounts with the Bank. Such loans and deposits were made in the ordinary course of business on substantially the same terms, including interest rates, as those prevailing at the time for comparable transactions with outsiders. As of December 31, 2015 , the Bank had loans outstanding to directors totaling $3.0 million , which consisted of three loans. As of December 31, 2015 , the Bank had deposits outstanding from directors and their related interests totaling $5.9 million . During the years ended December 31, 2015 , 2014 and 2013 , the Bank obtained services from affiliated companies of certain directors and executive officers in the normal course of business as outlined below. (Dollars in thousands) Years Ended December 31, Related Party Affiliation Nature of Transaction 2015 2014 2013 Mikell Schenck Associates Owned by spouse of a director/executive officer Interior design services $ — $ — $ 22 Ascent Data Corporation Owned by a director Systems consulting — 32 17 Voyager Jet Center Owned by a director Aircraft charter 73 158 117 Total $ 73 $ 190 $ 156 |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 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. |
Condensed Parent Company Only F
Condensed Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS | CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS The following condensed statements of financial condition of the Company as of December 31, 2015 and 2014 , and the related condensed statements of income and cash flows for the years ended December 31, 2015 , 2014 and 2013 , should be read in conjunction with our Consolidated Financial Statements and related notes: CONDENSED STATEMENTS OF FINANCIAL CONDITION December 31, (Dollars in thousands) 2015 2014 ASSETS Cash and cash equivalents $ 4,936 $ 19,235 Investment securities available-for-sale 7,759 8,038 Investment in subsidiaries 348,966 312,811 Prepaid expenses and other assets 772 1,373 Total assets $ 362,433 $ 341,457 LIABILITIES AND SHAREHOLDERS’ EQUITY Borrowings $ 35,000 $ 35,000 Other accrued expenses and other liabilities 1,456 1,067 Shareholders’ equity 325,977 305,390 Total liabilities and shareholders’ equity $ 362,433 $ 341,457 CONDENSED STATEMENTS OF INCOME Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Interest income $ 268 $ 259 $ 192 Dividends received from subsidiaries 2,510 2,480 — Total interest and dividend income 2,778 2,739 192 Interest expense 2,215 1,266 — Net interest income 563 1,473 192 Non-interest income — — — Non-interest expense 92 119 20 Income before income taxes and undisbursed income of subsidiaries 471 1,354 172 Income tax expense (benefit) 67 (467 ) 54 Income before undisbursed income of subsidiaries 404 1,821 118 Undisbursed income of subsidiaries 22,084 14,107 12,749 Net income $ 22,488 $ 15,928 $ 12,867 CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Cash Flows from Operating Activities: Net income $ 22,488 $ 15,928 $ 12,867 Adjustments to reconcile net income to net cash provided by operating activities: Undisbursed income of subsidiaries (22,084 ) (14,107 ) (12,749 ) Amortization of deferred financing costs 203 118 — Increase (decrease) in accrued interest payable (143 ) 1,149 — Decrease (increase) in other assets 587 (453 ) 14 (Decrease) increase in other liabilities 532 (123 ) 41 Net cash provided by operating activities 1,583 2,512 173 Cash Flows from Investing Activities: Purchase of investment securities available-for-sale (248 ) (8,110 ) — Net payments for investments in subsidiaries (12,600 ) (69,580 ) — Net cash used in investing activities (12,848 ) (77,690 ) — Cash Flows from Financing Activities: Net proceeds from issuance of subordinated notes payable — 33,988 — Net proceeds from issuance of common stock — — 65,990 Net proceeds from exercise of stock options 353 250 125 Redemption of stock options (229 ) — — Purchase of treasury stock (3,158 ) (6,746 ) — Net cash provided by (used in) financing activities (3,034 ) 27,492 66,115 Net change in cash and cash equivalents (14,299 ) (47,686 ) 66,288 Cash and cash equivalents at beginning of year 19,235 66,921 633 Cash and cash equivalents at end of year $ 4,936 $ 19,235 $ 66,921 |
Segments
Segments | 12 Months Ended |
Dec. 31, 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 supports 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) December 31, 2015 December 31, 2014 Assets: Bank $ 3,236,756 $ 2,776,421 Investment management 65,516 62,489 Parent and other 591 7,947 Total assets $ 3,302,863 $ 2,846,857 Year Ended December 31, 2015 (Dollars in thousands) Bank Investment Parent Consolidated Income statement data: Interest income $ 82,958 $ — $ 249 $ 83,207 Interest expense 13,448 — 2,195 15,643 Net interest income (loss) 69,510 — (1,946 ) 67,564 Provision for loan losses 13 — — 13 Net interest income (loss) after provision for loan losses 69,497 — (1,946 ) 67,551 Non-interest income: Investment management fees — 29,814 (196 ) 29,618 Net gain on the sale of investment securities available-for-sale 33 — — 33 Other non-interest income 6,229 (8 ) — 6,221 Total non-interest income 6,262 29,806 (196 ) 35,872 Non-interest expense: Intangible amortization expense — 1,558 — 1,558 Other non-interest expense 47,186 21,403 (104 ) 68,485 Total non-interest expense 47,186 22,961 (104 ) 70,043 Income (loss) before tax 28,573 6,845 (2,038 ) 33,380 Income tax expense 8,347 2,477 68 10,892 Net income (loss) $ 20,226 $ 4,368 $ (2,106 ) $ 22,488 Year Ended December 31, 2014 (Dollars in thousands) Bank Investment Parent Consolidated Income statement data: Interest income $ 77,803 $ — $ 110 $ 77,913 Interest expense 11,134 — 1,117 12,251 Net interest income (loss) 66,669 — (1,007 ) 65,662 Provision for loan losses 10,159 — — 10,159 Net interest income (loss) after provision for loan losses 56,510 — (1,007 ) 55,503 Non-interest income: Investment management fees — 25,219 (157 ) 25,062 Net gain on the sale of investment securities available-for-sale 1,428 — — 1,428 Other non-interest income 5,193 38 — 5,231 Total non-interest income 6,621 25,257 (157 ) 31,721 Non-interest expense: Intangible amortization expense — 1,299 — 1,299 Acquisition earnout expense — 1,614 — 1,614 Other non-interest expense 43,115 18,338 (39 ) 61,414 Total non-interest expense 43,115 21,251 (39 ) 64,327 Income (loss) before tax 20,016 4,006 (1,125 ) 22,897 Income tax expense (benefit) 5,909 1,527 (467 ) 6,969 Net income (loss) $ 14,107 $ 2,479 $ (658 ) $ 15,928 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In January 2016, the company’s Board of Directors approved a share repurchase program of up to $10 million , authorizing TriState Capital Holdings to repurchase up to 1,000,000 shares of its common stock. The program authorizes repurchases totaling up to approximately 3.6% of the Company’s 28,056,195 common shares outstanding at December 31, 2015. Under the authorization, purchases may be made at the discretion of management from time to time in the open market or through negotiated transactions. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANICAL DATA | SELECTED QUARTERLY FINANCIAL DATA The tables below summarize our unaudited quarterly financial information for the years ended December 31, 2015 and 2014 : 2015 (Dollars in thousands, except per share data) Fourth Third Second First Income statement data: (unaudited) Interest income $ 21,846 $ 20,940 $ 20,426 $ 19,995 Interest expense 4,312 3,984 3,808 3,539 Net interest income 17,534 16,956 16,618 16,456 Provision (credit) for loan losses 244 (1,341 ) 185 925 Net interest income after provision for loan losses 17,290 18,297 16,433 15,531 Non-interest income: Investment management fees 7,429 7,020 7,514 7,655 Net gain on sale of investment securities available-for-sale 16 — — 17 Other non-interest income 1,674 1,044 2,117 1,386 Total non-interest income 9,119 8,064 9,631 9,058 Non-interest expense: Intangible amortization expense 389 390 390 389 Other non-interest expense 17,669 16,911 17,192 16,713 Total non-interest expense 18,058 17,301 17,582 17,102 Income before tax 8,351 9,060 8,482 7,487 Income tax expense 2,765 2,942 2,754 2,431 Net income $ 5,586 $ 6,118 $ 5,728 $ 5,056 Earnings per common share: Basic $ 0.20 $ 0.22 $ 0.21 $ 0.18 Diluted $ 0.20 $ 0.22 $ 0.20 $ 0.18 2014 (Dollars in thousands, except per share data) Fourth Third Second First Income statement data: (unaudited) Interest income $ 20,933 $ 19,681 $ 18,991 $ 18,308 Interest expense 3,417 3,435 2,953 2,446 Net interest income 17,516 16,246 16,038 15,862 Provision (credit) for loan losses (209 ) 651 9,109 608 Net interest income after provision for loan losses 17,725 15,595 6,929 15,254 Non-interest income: Net gain on sale of investment securities available-for-sale — — 414 1,014 Other non-interest income 1,149 1,872 1,198 1,012 Total non-interest income 8,830 9,290 9,121 4,480 Non-interest expense: Intangible amortization expense 390 389 390 130 Acquisition earnout expense 1,614 — — — Other non-interest expense 17,374 16,284 15,094 12,662 Total non-interest expense 19,378 16,673 15,484 12,792 Income before tax 7,177 8,212 566 6,942 Income tax expense 2,085 2,506 52 2,326 Net income $ 5,092 $ 5,706 $ 514 $ 4,616 Earnings per common share: Basic $ 0.18 $ 0.20 $ 0.02 $ 0.16 Diluted $ 0.18 $ 0.20 $ 0.02 $ 0.16 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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. 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. |
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 and equity 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 and equity 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 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 December 31, 2015 and 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 have an impact on 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 year ended December 31, 2015 , and there was no allowance for uncollectible accounts recorded as of December 31, 2015 . |
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 recoverable at par value, as of December 31, 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. The 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 Common Share | EARNINGS PER COMMON SHARE We compute earnings per common share (“EPS”) in accordance with the two-class method, which requires that any Series C convertible preferred stock outstanding be treated as participating securities in the computation of EPS. The two-class method is an earnings allocation that determines EPS for each class of common stock and participating security. The Company’s basic EPS is computed by dividing net income allocable to common shareholders by the weighted average number of its common shares outstanding for the period, excluding non-vested restricted shares. The Company’s diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in our earnings. Diluted EPS reflects the potential dilution of upon the exercise of stock options and vesting of restricted share 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 shares, 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 previous net gains on treasury share transactions exists. Any deficiency is charged to retained earnings. |
Recent Accounting Developments | RECENT ACCOUNTING DEVELOPMENTS In January 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”, which will significantly change the income statement impact of equity investments, and the recognition of changes in fair value of financial liabilities when the fair value option is elected. The ASU is effective for public business entities for interim and annual periods in fiscal years beginning after December 15, 2017. All other entities must apply the new requirements for annual periods in fiscal years beginning after December 15, 2018, and interim periods in fiscal years beginning after December 15, 2019. We are currently evaluating the impact this standard will have on our results of operations and financial position. In September 2015, the FASB issued 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 2015-03, “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. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of total consideration paid, assets acquired and liabilities assumed | The following table summarizes total consideration paid, assets acquired and liabilities assumed for the Chartwell acquisition at closing: (Dollars in thousands) Chartwell Consideration paid: Cash $ 44,223 Estimated earnout, at closing 15,465 Fair value of total consideration, at closing $ 59,688 Fair value of assets acquired: Cash and cash equivalents $ 1,311 Investment management fees receivable 5,304 Office properties and equipment 90 Deferred tax asset 813 Other assets 144 Total assets acquired 7,662 Fair value of liabilities assumed: Other liabilities 1,647 Total liabilities assumed 1,647 Fair value net identifiable assets acquired 6,015 Long-lived amortizable intangible assets acquired 19,510 Goodwill 34,163 Total net assets purchased $ 59,688 |
Business acquisition, pro forma information | The following table presents unaudited pro forma financial information which combines the historical consolidated statements of income of the Company and Chartwell Investment Partners, LP to give effect to the acquisition as if it had occurred on January 1, 2013, for the periods indicated. Pro Forma (unaudited) Years Ended December 31, (Dollars in thousands) 2014 2013 Total revenue $ 100,857 $ 92,592 Net income $ 16,568 $ 15,196 Earnings per common share: Basic $ 0.58 $ 0.58 Diluted $ 0.57 $ 0.57 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2015 (Dollars in thousands) Amortized Gross Unrealized Gross Unrealized Estimated Investment securities available-for-sale: Corporate bonds $ 43,952 $ 18 $ 237 $ 43,733 Trust preferred securities 17,579 — 978 16,601 Non-agency mortgage-backed securities 5,756 — 13 5,743 Non-agency collateralized loan obligations 11,843 — 132 11,711 Agency collateralized mortgage obligations 49,544 92 265 49,371 Agency mortgage-backed securities 28,586 270 187 28,669 Agency debentures 4,719 13 — 4,732 Equity securities 8,358 — 599 7,759 Total investment securities available-for-sale 170,337 393 2,411 168,319 Investment securities held-to-maturity: Corporate bonds 19,448 498 84 19,862 Agency debentures 2,453 19 — 2,472 Municipal bonds 25,389 377 1 25,765 Total investment securities held-to-maturity 47,290 894 85 48,099 Total $ 217,627 $ 1,287 $ 2,496 $ 216,418 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 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 investment securities held-to-maturity | Investment securities available-for-sale and held-to-maturity are comprised of the following: December 31, 2015 (Dollars in thousands) Amortized Gross Unrealized Gross Unrealized Estimated Investment securities available-for-sale: Corporate bonds $ 43,952 $ 18 $ 237 $ 43,733 Trust preferred securities 17,579 — 978 16,601 Non-agency mortgage-backed securities 5,756 — 13 5,743 Non-agency collateralized loan obligations 11,843 — 132 11,711 Agency collateralized mortgage obligations 49,544 92 265 49,371 Agency mortgage-backed securities 28,586 270 187 28,669 Agency debentures 4,719 13 — 4,732 Equity securities 8,358 — 599 7,759 Total investment securities available-for-sale 170,337 393 2,411 168,319 Investment securities held-to-maturity: Corporate bonds 19,448 498 84 19,862 Agency debentures 2,453 19 — 2,472 Municipal bonds 25,389 377 1 25,765 Total investment securities held-to-maturity 47,290 894 85 48,099 Total $ 217,627 $ 1,287 $ 2,496 $ 216,418 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 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 December 31, 2015 , the contractual maturities of the debt securities are: December 31, 2015 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Estimated Amortized Estimated Due in one year or less $ 7,058 $ 7,044 $ — $ — Due from one to five years 36,894 36,689 12,078 12,579 Due from five to ten years 11,111 11,030 33,787 34,042 Due after ten years 106,916 105,797 1,425 1,478 Total debt securities $ 161,979 $ 160,560 $ 47,290 $ 48,099 |
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 temporarily impaired 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 December 31, 2015 and December 31, 2014 , respectively: December 31, 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 $ 23,582 $ 155 $ 6,460 $ 82 $ 30,042 $ 237 Trust preferred securities 8,076 471 8,526 507 16,602 978 Non-agency mortgage-backed securities — — 5,743 13 5,743 13 Non-agency collateralized loan obligations 9,859 132 — — 9,859 132 Agency collateralized mortgage obligations 25,566 151 11,836 114 37,402 265 Agency mortgage-backed securities 1,469 15 10,811 172 12,280 187 Equity securities — — 7,759 599 7,759 599 Total investment securities available-for-sale 68,552 924 51,135 1,487 119,687 2,411 Investment securities held-to-maturity: Corporate bonds 9,863 84 — — 9,863 84 Municipal bonds 571 1 — — 571 1 Total investment securities held-to-maturity 10,434 85 — — 10,434 85 Total temporarily impaired securities $ 78,986 $ 1,009 $ 51,135 $ 1,487 $ 130,121 $ 2,496 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) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of loans receivable | Loans held-for-investment was comprised of the following: December 31, 2015 (Dollars in thousands) Commercial Commercial Private Total Loans held-for-investment, before deferred fees $ 634,857 $ 864,863 $ 1,341,988 $ 2,841,708 Less: net deferred loan (fees) costs (625 ) (2,675 ) 2,876 (424 ) Loans held-for-investment, net of deferred fees 634,232 862,188 1,344,864 2,841,284 Less: allowance for loan losses (11,064 ) (5,344 ) (1,566 ) (17,974 ) Loans held-for-investment, net $ 623,168 $ 856,844 $ 1,343,298 $ 2,823,310 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) | 12 Months Ended |
Dec. 31, 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: December 31, 2015 (Dollars in thousands) Commercial Commercial Private Total Non-rated $ 2,017 $ — $ 83,513 $ 85,530 Pass 583,544 858,396 1,259,300 2,701,240 Special mention 31,863 880 — 32,743 Substandard 15,835 2,912 2,051 20,798 Doubtful 973 — — 973 Loans held-for-investment $ 634,232 $ 862,188 $ 1,344,864 $ 2,841,284 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 years ended December 31, 2015 , 2014 and 2013 : Year Ended December 31, 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 (112 ) 589 (464 ) 13 Charge-offs (3,353 ) — — (3,353 ) Recoveries 1,028 — 13 1,041 Balance, end of period $ 11,064 $ 5,344 $ 1,566 $ 17,974 Year Ended December 31, 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 10,596 (349 ) (88 ) 10,159 Charge-offs (9,521 ) — — (9,521 ) Recoveries 545 — 94 639 Balance, end of period $ 13,501 $ 4,755 $ 2,017 $ 20,273 Year Ended December 31, 2013 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 9,950 $ 5,120 $ 2,804 $ 17,874 Provision (credit) for loan losses 7,325 1,642 (780 ) 8,187 Charge-offs (5,508 ) (1,936 ) (13 ) (7,457 ) Recoveries 114 278 — 392 Balance, end of period $ 11,881 $ 5,104 $ 2,011 $ 18,996 |
Past due loans segregated by class of loan | The following tables present the age analysis of past due loans segregated by class of loan: December 31, 2015 (Dollars in thousands) 30-59 Days 60-89 Days Loans Past Total Current Total Commercial and industrial $ — $ — $ 976 $ 976 $ 633,256 $ 634,232 Commercial real estate — — 2,912 2,912 859,276 862,188 Private banking — — 1,431 1,431 1,343,433 1,344,864 Loans held-for-investment $ — $ — $ 5,319 $ 5,319 $ 2,835,965 $ 2,841,284 December 31, 2014 (Dollars in thousands) 30-59 Days 60-89 Days Loans Past Total 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 Year Ended December 31, 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 $ 11,797 $ 19,204 $ 3,800 $ 15,331 $ — Commercial real estate — — — — — Private banking 745 864 745 824 — Total with a related allowance recorded 12,542 20,068 4,545 16,155 — Without a related allowance recorded: Commercial and industrial 513 1,789 — 838 29 Commercial real estate 2,912 9,067 — 3,108 — Private banking 1,203 1,448 — 1,202 — Total without a related allowance recorded 4,628 12,304 — 5,148 29 Total: Commercial and industrial 12,310 20,993 3,800 16,169 29 Commercial real estate 2,912 9,067 — 3,108 — Private banking 1,948 2,312 745 2,026 — Total $ 17,170 $ 32,372 $ 4,545 $ 21,303 $ 29 As of and for the Year 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 As of and for the Year Ended December 31, 2013 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial and industrial $ 15,157 $ 23,126 $ 4,658 $ 13,261 $ — Commercial real estate — — — — — Private banking 814 869 814 874 — Total with a related allowance recorded 15,971 23,995 5,472 14,135 — Without a related allowance recorded: Commercial and industrial 1,046 2,264 — 1,473 6 Commercial real estate 3,498 9,705 — 4,170 — Private banking 305 295 — 25 — Total without a related allowance recorded 4,849 12,264 — 5,668 6 Total: Commercial and industrial 16,203 25,390 4,658 14,734 6 Commercial real estate 3,498 9,705 — 4,170 — Private banking 1,119 1,164 814 899 — Total $ 20,820 $ 36,259 $ 5,472 $ 19,803 $ 6 |
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: December 31, 2015 (Dollars in thousands) Commercial Commercial Private Total Allowance for loan losses: Individually evaluated for impairment $ 3,800 $ — $ 745 $ 4,545 Collectively evaluated for impairment 7,264 5,344 821 13,429 Total allowance for loan losses $ 11,064 $ 5,344 $ 1,566 $ 17,974 Loans held-for-investment: Individually evaluated for impairment $ 12,310 $ 2,912 $ 1,948 $ 17,170 Collectively evaluated for impairment 621,922 859,276 1,342,916 2,824,114 Loans held-for-investment $ 634,232 $ 862,188 $ 1,344,864 $ 2,841,284 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) December 31, December 31, Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring: Accruing interest $ 510 $ 528 Non-accrual 12,894 14,107 Total troubled debt restructurings $ 13,404 $ 14,635 |
Financial effects of modifications | The financial effects of our modifications made during the years ended December 31, 2015 , 2014 and 2013 , were as follows: Year Ended December 31, 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 6,849 973 1,500 172 Total 4 $ 11,346 $ 973 $ 2,333 $ 172 Year Ended December 31, 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 $ 4,620 $ 1,968 $ 1,120 Private Banking: Extended term, reduced interest rate 1 1,266 1,094 100 — Total 2 $ 6,484 $ 5,714 $ 2,068 $ 1,120 Year Ended December 31, 2013 (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 1 $ 2,691 $ 2,347 $ 1,100 $ 1,100 Advanced additional funds 2 6,957 8,120 2,000 1,357 Private Banking: Forgave principal 1 210 197 — — Total 4 $ 9,858 $ 10,664 $ 3,100 $ 2,457 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following table presents the change in goodwill for the years ended December 31, 2015 and 2014 : (Dollars in thousands) 2015 2014 Balance at beginning of period $ 34,163 $ — Additions — 34,163 Balance at end of period $ 34,163 $ 34,163 |
Schedule of changes in intangible assets | The following table presents the change in intangible assets for the years ended December 31: (Dollars in thousands) 2015 2014 Gross carrying amount at beginning of period $ 18,211 $ — Additions — 19,510 Accumulated amortization (1,558 ) (1,299 ) Balance at end of period $ 16,653 $ 18,211 |
Schedule intangible assets | The following table presents the ending balance of intangible assets as of the dates presented and original, estimated useful life by class: (Dollars in thousands) December 31, 2015 December 31, 2014 Weighted Average Estimated Trade name $ 1,081 $ 1,140 240 Client Relationships: Sub-advisory client list 9,679 10,509 162 Separate managed accounts client list 894 1,004 120 Other institutional client list 4,958 5,499 132 Non-compete agreements 41 59 48 Total intangible assets $ 16,653 $ 18,211 155 |
Schedule of expected amortization expense for finite-lived intangibles assets | The following is a summary of the expected intangible amortization expense for finite-lived intangibles assets, assuming no new additions, for each of the five years following December 31, 2015 : (Dollars in thousands) Amount 2016 $ 1,558 2017 1,558 2018 1,543 2019 1,540 2020 1,540 Thereafter 8,914 Total $ 16,653 |
Office Properties and Equipme41
Office Properties and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant, Equipment and Operating Leases [Abstract] | |
Office properties and equipment by major classification | Following is a summary of office properties and equipment by major classification: December 31, (Dollars in thousands) 2015 2014 Furniture, fixtures and equipment $ 7,890 $ 7,208 Leasehold improvements 3,953 3,600 Total, at cost 11,843 10,808 Less: accumulated depreciation (8,004 ) (6,680 ) Net office properties and equipment $ 3,839 $ 4,128 |
Schedule of future minimum lease payments | At December 31, 2015 , future minimum lease payments were as follows: (Dollars in thousands) December 31, 2016 $ 1,984 2017 1,782 2018 1,678 2019 1,694 2020 1,675 Thereafter 858 Total $ 9,671 |
Deposits Deposits (Tables)
Deposits Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Schedule of deposits | Interest Rate Range as of Weighted Average Balance as of (Dollars in thousands) December 31, December 31, December 31, December 31, December 31, Demand and savings accounts: Noninterest-bearing checking accounts — — — $ 159,859 $ 177,606 Interest-bearing checking accounts 0.05 to 0.50% 0.42 % 0.42 % 136,037 75,679 Money market deposit accounts 0.05 to 1.50% 0.50 % 0.39 % 1,464,279 1,244,921 Total demand and savings accounts 1,760,175 1,498,206 Time deposits 0.05 to 1.39% 0.78 % 0.69 % 929,669 838,747 Total deposit balance $ 2,689,844 $ 2,336,953 Average rate paid on interest-bearing accounts 0.60 % 0.51 % |
Schedule of maturities of time deposits | The contractual maturity of time deposits, including brokered deposits, is as follows: (Dollars in thousands) December 31, December 31, 12 months or less $ 645,004 $ 722,752 12 months to 24 months 219,333 111,865 24 months to 36 months 65,332 4,130 36 months to 48 months — — 48 months to 60 months — — Over 60 months — — Total $ 929,669 $ 838,747 |
Schedule of interest expense on deposits by type of deposit | Interest expense on deposits is as follows: Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Interest-bearing checking accounts $ 439 $ 229 $ 4 Money market deposit accounts 5,687 4,228 3,756 Time deposits 6,762 6,154 7,221 Total interest expense on deposits $ 12,888 $ 10,611 $ 10,981 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings | As of December 31, 2015 and December 31, 2014 , borrowings were comprised of the following: December 31, 2015 December 31, 2014 (Dollars in thousands) Interest Rate Ending Balance Maturity Date Interest Rate Ending Balance Maturity Date FHLB borrowing: Issued 12/31/2015 0.51 % 170,000 1/4/2016 — Issued 7/29/2015 0.61 % 25,000 8/4/2016 — Issued 7/29/2015 0.72 % 25,000 11/3/2016 — Issued 12/31/2014 — 0.27 % 30,000 1/2/2015 Issued 5/5/2014 — 0.33 % 25,000 2/5/2015 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 Subordinated notes payable 5.75 % 35,000 7/1/2019 5.75 % 35,000 7/1/2019 Total $ 255,000 $ 165,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | The income tax provision reconciled to taxes computed at the statutory federal rate is as follows: Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Tax provision at statutory rate $ 11,683 $ 8,014 $ 6,503 Meals and entertainment 103 84 57 Dues and subscriptions 116 123 102 Keyman life insurance — 12 25 Bank owned life insurance (593 ) (504 ) (348 ) State tax expense, net of federal benefit 951 407 134 Adjustments to prior year tax (60 ) (51 ) 12 Tax exempt income, net of disallowed interest (160 ) (145 ) (109 ) Unrecognized tax benefits — 11 110 Investment tax credit (1,198 ) (1,022 ) (909 ) Other 50 40 136 Income tax provision $ 10,892 $ 6,969 $ 5,713 |
Schedule of components of income tax expense (benefit) | The income tax provision consists of: Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Current income tax provision - federal $ 9,917 $ 7,549 $ 7,823 Current income tax provision (benefit) - state 803 496 (257 ) Deferred tax provision (benefit) - federal 225 (735 ) (1,804 ) Deferred tax (benefit) - state (53 ) (341 ) (49 ) Income tax provision $ 10,892 $ 6,969 $ 5,713 |
Schedule of deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2015 and 2014 , are as follows: December 31, (Dollars in thousands) 2015 2014 Deferred tax assets: Net operating loss - state $ 6 $ 73 Start-up expenses 163 190 Stock compensation 2,709 2,606 Compensation related accruals 5,145 2,897 Leasehold improvement 100 133 Allowance for loan loss 6,639 7,419 Long-term lease 346 261 Reserve for unfunded commitments 202 203 Supplemental executive retirement plan 770 473 Transaction costs 277 295 Intangibles 183 81 Earnout liability non-purchase accounting 653 671 Unrealized loss on investments 846 362 Other 417 198 Gross deferred tax assets 18,456 15,862 Deferred tax liabilities: Office properties and equipment (2,585 ) (1,772 ) Deferred loan costs (2,192 ) (1,578 ) Goodwill (1,169 ) (393 ) State capital shares tax liability (324 ) (245 ) Gross deferred tax liability (6,270 ) (3,988 ) Net deferred tax asset $ 12,186 $ 11,874 |
Schedule of changes in net deferred tax assets | The change in the net deferred tax asset for the years ended December 31, 2015 and 2014 , is detailed as follows: December 31, (Dollars in thousands) 2015 2014 Deferred tax benefit (expense) $ (172 ) $ 1,076 Deferred tax - other comprehensive income (loss) 484 (610 ) Deferred tax asset established related to acquisitions — 813 Change in net deferred tax asset $ 312 $ 1,279 |
Schedule of unrecognized tax benefits roll forward | A reconciliation of the beginning and ending gross amounts of unrecognized tax benefits is as follows: December 31, (Dollars in thousands) 2015 2014 2013 Beginning of year balance $ — $ 110 $ — Increases in prior period tax positions 142 11 110 Decreases in prior period tax positions — — — Increases in current period tax positions 211 — — Settlements — (121 ) — End of year balance $ 353 $ — $ 110 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2015 and December 31, 2014 : December 31, 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 $ 326,378 13.88 % $ 188,176 8.00 % N/A N/A Bank $ 310,624 13.35 % $ 186,077 8.00 % $ 232,596 10.00 % Tier 1 risk-based capital ratio Company $ 287,072 12.20 % $ 141,132 6.00 % N/A N/A Bank $ 292,234 12.56 % $ 139,558 6.00 % $ 186,077 8.00 % Common equity tier 1 risk-based capital ratio Company $ 287,072 12.20 % $ 105,849 4.50 % N/A N/A Bank $ 292,234 12.56 % $ 104,668 4.50 % $ 151,187 6.50 % Tier 1 leverage ratio Company $ 287,072 9.05 % $ 126,932 4.00 % N/A N/A Bank $ 292,234 9.29 % $ 125,870 4.00 % $ 157,338 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) | 12 Months Ended |
Dec. 31, 2015 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Schedule of share-based compensation, common and preferred shares, activity | The table below shows the changes in the common and preferred shares during the periods indicated. Number of Number of Balance, December 31, 2012 17,444,730 48,780 Issuance of common stock 6,355,000 — Conversion of preferred stock to common stock 4,878,049 (48,780 ) Exercise of stock options 12,500 — Balance, December 31, 2013 28,690,279 — Issuance of restricted common stock 27,000 — Exercise of stock options 22,500 — Purchase of treasury stock (678,891 ) — Balance, December 31, 2014 28,060,888 — Issuance of restricted common stock 282,916 — Forfeitures of restricted common stock (4,000 ) — Exercise of stock options 37,500 — Purchase of treasury stock (321,109 ) — Balance, December 31, 2015 28,056,195 — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, (Dollars in thousands, except per share data) 2015 2014 2013 Net income available to common shareholders $ 22,488 $ 15,928 $ 12,867 Less: earnings allocated to participating stock — — 867 Net income available to common shareholders, after $ 22,488 $ 15,928 $ 12,000 Basic shares 27,771,345 28,628,631 24,589,811 Preferred shares - dilutive — — 1,777,481 Non-vested restricted shares - dilutive 56,364 82 1,807 Stock options - dilutive 409,744 389,193 373,924 Diluted shares 28,237,453 29,017,906 26,743,023 Earnings per common share: Basic $ 0.81 $ 0.56 $ 0.49 Diluted $ 0.80 $ 0.55 $ 0.48 |
Schedule of antidilutive securities excluded from computation of earnings per share | Years Ended December 31, 2015 2014 2013 Anti-dilutive shares (1) 721,893 779,732 590,500 (1) Included stock options and non-vested restricted shares not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive. |
Stock-Based Compensation Prog48
Stock-Based Compensation Programs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based payment award, stock options, valuation assumptions | December 31, 2015 2014 2013 Valuation Assumptions: Expected dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 45.4 % 35.3 % 37.3 % Expected term (years) 6.9 6.9 6.9 Risk-free interest rate 1.6 % 2.3 % 1.9 % |
Schedule of share-based compensation, stock options, activity | Stock option activity during the periods indicated is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Balance, December 31, 2012 2,193,000 $ 9.97 5.69 Granted 119,000 11.56 Exercised 12,500 10.00 Forfeited 33,000 11.16 Expired — — Balance, December 31, 2013 2,266,500 $ 10.03 4.94 Granted 309,732 12.04 Exercised 22,500 11.11 Forfeited 44,000 9.66 Expired — — Balance, December 31, 2014 2,509,732 $ 10.28 4.52 Granted 205,661 10.39 Exercised 37,500 9.41 Forfeited 41,500 10.75 Redeemed 77,000 10.00 Expired — — Balance, December 31, 2015 2,559,393 $ 10.30 3.98 Exercisable as of December 31, 2013 1,625,000 $ 10.08 3.56 Exercisable as of December 31, 2014 1,693,500 $ 10.04 2.75 Exercisable as of December 31, 2015 1,789,750 $ 9.99 2.28 |
Schedule of nonvested share activity | A summary of the status of the Company’s non-vested options as of and changes during the years ended December 31, 2015 , 2014 and 2013 , is presented below: Non-vested options: Number of Options Weighted Average Grant-Date Balance, December 31, 2012 674,500 $ 4.88 Granted 119,000 4.80 Vested 119,000 4.60 Forfeited 33,000 5.40 Balance, December 31, 2013 641,500 $ 4.89 Granted 309,732 4.90 Vested 91,000 5.12 Forfeited 44,000 4.84 Balance, December 31, 2014 816,232 $ 4.87 Granted 205,661 4.98 Vested 210,750 5.91 Forfeited 41,500 4.85 Balance, December 31, 2015 769,643 $ 4.93 |
Nonvested restricted stock shares activity | A summary of the status of the Company’s non-vested restricted shares as of and changes during the years ended December 31, 2015 , 2014 and 2013 , is presented below: Non-vested restricted shares: Number of Shares Weighted Average Grant-Date Balance, December 31, 2012 — $ — Granted — — Vested — — Forfeited — — Balance, December 31, 2013 — $ — Granted 27,000 10.66 Vested — — Forfeited — — Balance, December 31, 2014 27,000 $ 10.66 Granted 282,916 10.54 Vested — — Forfeited 4,000 10.57 Balance, December 31, 2015 305,916 $ 10.55 |
Derivatives and Hedging Activ49
Derivatives and Hedging Activity (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2015 and December 31, 2014 : Asset Derivatives Liability Derivatives as of December 31, 2015 as of December 31, 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 $ 229 Derivatives not designated as hedging instruments: Interest rate products Other assets $ 8,662 Other liabilities $ 9,363 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: Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Derivatives designated as hedging instruments: Location of Gain (Loss) Recognized in Amount of Gain (Loss) Interest rate products Interest income $ (294 ) $ (321 ) $ (434 ) Non-interest income 3 10 14 Total $ (291 ) $ (311 ) $ (420 ) Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Amount of Gain (Loss) Interest rate products Non-interest income $ (174 ) $ (423 ) $ 154 Total $ (174 ) $ (423 ) $ 154 |
Disclosures about Fair Value 50
Disclosures about Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2015 and December 31, 2014 : December 31, 2015 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets / Financial assets: Investment securities available-for-sale: Corporate bonds $ — $ 43,733 $ — $ 43,733 Trust preferred securities — 16,601 — 16,601 Non-agency mortgage-backed securities — 5,743 — 5,743 Non-agency collateralized loan obligations — 11,711 — 11,711 Agency collateralized mortgage obligations — 49,371 — 49,371 Agency mortgage-backed securities — 28,669 — 28,669 Agency debentures — 4,732 — 4,732 Equity securities 7,759 — — 7,759 Interest rate swaps — 8,662 — 8,662 Total financial assets 7,759 169,222 — 176,981 Financial liabilities: Interest rate swaps — 9,592 — 9,592 Total financial liabilities $ — $ 9,592 $ — $ 9,592 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 December 31, 2015 and December 31, 2014 : December 31, 2015 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Loans measured for impairment, net $ — $ — $ 12,625 $ 12,625 Other real estate owned — — 1,730 1,730 Total assets $ — $ — $ 14,355 $ 14,355 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 December 31, 2015 and December 31, 2014 : December 31, 2015 (Dollars in thousands) Fair Value Valuation Techniques (1) Significant Unobservable Inputs Weighted Average Discount Rate Loans measured for impairment, net $ 5,428 Appraisal value or Liquidation analysis Discount due 14 % Loans measured for impairment, net $ 7,197 Discounted cash flow Discount due to restructured nature of operations 7 % Other real estate owned $ 1,730 Appraisal value Discount due to salability conditions 10 % (1) Fair value is generally determined through independent appraisals or liquidation analysis 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 Discount Rate Loans measured for impairment, net $ 7,559 Appraisal value or Market multiple 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 to salability conditions 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. |
Carrying amounts and estimated fair values of financial instruments | A summary of the carrying amounts and estimated fair values of financial instruments is as follows: December 31, 2015 December 31, 2014 (Dollars in thousands) Fair Value Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents 1 $ 96,676 $ 96,676 $ 105,710 $ 105,710 Investment securities available-for-sale: debt 2 160,560 160,560 158,534 158,534 Investment securities available-for-sale: equity 1 7,759 7,759 8,038 8,038 Investment securities held-to-maturity 2 47,290 48,099 39,591 40,113 Loans held-for-investment, net 3 2,823,310 2,813,278 2,379,779 2,376,075 Accrued interest receivable 2 7,056 7,056 6,279 6,279 Investment management fees receivable 2 6,191 6,191 6,818 6,818 Federal Home Loan Bank stock 2 9,802 9,802 5,730 5,730 Bank owned life insurance 2 60,019 60,019 53,323 53,323 Interest rate swaps 2 8,662 8,662 6,327 6,327 Other real estate owned 3 1,730 1,730 1,370 1,370 Financial liabilities: Deposits 2 $ 2,689,844 $ 2,690,693 $ 2,336,953 $ 2,337,734 Borrowings 2 255,000 255,179 165,000 165,163 Interest rate swaps 2 9,592 9,592 7,291 7,291 |
Changes in Accumulated Other 51
Changes in Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive income | The following table shows the changes in accumulated other comprehensive income (loss), for the periods presented: Years Ended December 31, 2015 2014 2013 (Dollars in thousands) Unrealized Gains Unrealized Gains Unrealized Gains Balance, beginning of period $ (627 ) $ (1,744 ) $ 1,671 Change in unrealized holding gains (losses) (795 ) 2,034 (2,903 ) Gains reclassified from other comprehensive income (loss) (1) (21 ) (917 ) (512 ) Net other comprehensive income (loss) (816 ) 1,117 (3,415 ) Balance, end of period $ (1,443 ) $ (627 ) $ (1,744 ) (1) Consists of net realized gains on sales of investment securities available-for-sale of $33,000 , $1.4 million and $797,000 , net of income tax expense of $12,000 , $511,000 and $285,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | During the years ended December 31, 2015 , 2014 and 2013 , the Bank obtained services from affiliated companies of certain directors and executive officers in the normal course of business as outlined below. (Dollars in thousands) Years Ended December 31, Related Party Affiliation Nature of Transaction 2015 2014 2013 Mikell Schenck Associates Owned by spouse of a director/executive officer Interior design services $ — $ — $ 22 Ascent Data Corporation Owned by a director Systems consulting — 32 17 Voyager Jet Center Owned by a director Aircraft charter 73 158 117 Total $ 73 $ 190 $ 156 |
Condensed Parent Company Only53
Condensed Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of condensed balance sheet | CONDENSED STATEMENTS OF FINANCIAL CONDITION December 31, (Dollars in thousands) 2015 2014 ASSETS Cash and cash equivalents $ 4,936 $ 19,235 Investment securities available-for-sale 7,759 8,038 Investment in subsidiaries 348,966 312,811 Prepaid expenses and other assets 772 1,373 Total assets $ 362,433 $ 341,457 LIABILITIES AND SHAREHOLDERS’ EQUITY Borrowings $ 35,000 $ 35,000 Other accrued expenses and other liabilities 1,456 1,067 Shareholders’ equity 325,977 305,390 Total liabilities and shareholders’ equity $ 362,433 $ 341,457 |
Schedule of condensed income statement | CONDENSED STATEMENTS OF INCOME Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Interest income $ 268 $ 259 $ 192 Dividends received from subsidiaries 2,510 2,480 — Total interest and dividend income 2,778 2,739 192 Interest expense 2,215 1,266 — Net interest income 563 1,473 192 Non-interest income — — — Non-interest expense 92 119 20 Income before income taxes and undisbursed income of subsidiaries 471 1,354 172 Income tax expense (benefit) 67 (467 ) 54 Income before undisbursed income of subsidiaries 404 1,821 118 Undisbursed income of subsidiaries 22,084 14,107 12,749 Net income $ 22,488 $ 15,928 $ 12,867 |
Schedule of condensed cash flow statement | CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (Dollars in thousands) 2015 2014 2013 Cash Flows from Operating Activities: Net income $ 22,488 $ 15,928 $ 12,867 Adjustments to reconcile net income to net cash provided by operating activities: Undisbursed income of subsidiaries (22,084 ) (14,107 ) (12,749 ) Amortization of deferred financing costs 203 118 — Increase (decrease) in accrued interest payable (143 ) 1,149 — Decrease (increase) in other assets 587 (453 ) 14 (Decrease) increase in other liabilities 532 (123 ) 41 Net cash provided by operating activities 1,583 2,512 173 Cash Flows from Investing Activities: Purchase of investment securities available-for-sale (248 ) (8,110 ) — Net payments for investments in subsidiaries (12,600 ) (69,580 ) — Net cash used in investing activities (12,848 ) (77,690 ) — Cash Flows from Financing Activities: Net proceeds from issuance of subordinated notes payable — 33,988 — Net proceeds from issuance of common stock — — 65,990 Net proceeds from exercise of stock options 353 250 125 Redemption of stock options (229 ) — — Purchase of treasury stock (3,158 ) (6,746 ) — Net cash provided by (used in) financing activities (3,034 ) 27,492 66,115 Net change in cash and cash equivalents (14,299 ) (47,686 ) 66,288 Cash and cash equivalents at beginning of year 19,235 66,921 633 Cash and cash equivalents at end of year $ 4,936 $ 19,235 $ 66,921 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 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) December 31, 2015 December 31, 2014 Assets: Bank $ 3,236,756 $ 2,776,421 Investment management 65,516 62,489 Parent and other 591 7,947 Total assets $ 3,302,863 $ 2,846,857 Year Ended December 31, 2015 (Dollars in thousands) Bank Investment Parent Consolidated Income statement data: Interest income $ 82,958 $ — $ 249 $ 83,207 Interest expense 13,448 — 2,195 15,643 Net interest income (loss) 69,510 — (1,946 ) 67,564 Provision for loan losses 13 — — 13 Net interest income (loss) after provision for loan losses 69,497 — (1,946 ) 67,551 Non-interest income: Investment management fees — 29,814 (196 ) 29,618 Net gain on the sale of investment securities available-for-sale 33 — — 33 Other non-interest income 6,229 (8 ) — 6,221 Total non-interest income 6,262 29,806 (196 ) 35,872 Non-interest expense: Intangible amortization expense — 1,558 — 1,558 Other non-interest expense 47,186 21,403 (104 ) 68,485 Total non-interest expense 47,186 22,961 (104 ) 70,043 Income (loss) before tax 28,573 6,845 (2,038 ) 33,380 Income tax expense 8,347 2,477 68 10,892 Net income (loss) $ 20,226 $ 4,368 $ (2,106 ) $ 22,488 Year Ended December 31, 2014 (Dollars in thousands) Bank Investment Parent Consolidated Income statement data: Interest income $ 77,803 $ — $ 110 $ 77,913 Interest expense 11,134 — 1,117 12,251 Net interest income (loss) 66,669 — (1,007 ) 65,662 Provision for loan losses 10,159 — — 10,159 Net interest income (loss) after provision for loan losses 56,510 — (1,007 ) 55,503 Non-interest income: Investment management fees — 25,219 (157 ) 25,062 Net gain on the sale of investment securities available-for-sale 1,428 — — 1,428 Other non-interest income 5,193 38 — 5,231 Total non-interest income 6,621 25,257 (157 ) 31,721 Non-interest expense: Intangible amortization expense — 1,299 — 1,299 Acquisition earnout expense — 1,614 — 1,614 Other non-interest expense 43,115 18,338 (39 ) 61,414 Total non-interest expense 43,115 21,251 (39 ) 64,327 Income (loss) before tax 20,016 4,006 (1,125 ) 22,897 Income tax expense (benefit) 5,909 1,527 (467 ) 6,969 Net income (loss) $ 14,107 $ 2,479 $ (658 ) $ 15,928 |
Selected Quarterly Financial 55
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | The tables below summarize our unaudited quarterly financial information for the years ended December 31, 2015 and 2014 : 2015 (Dollars in thousands, except per share data) Fourth Third Second First Income statement data: (unaudited) Interest income $ 21,846 $ 20,940 $ 20,426 $ 19,995 Interest expense 4,312 3,984 3,808 3,539 Net interest income 17,534 16,956 16,618 16,456 Provision (credit) for loan losses 244 (1,341 ) 185 925 Net interest income after provision for loan losses 17,290 18,297 16,433 15,531 Non-interest income: Investment management fees 7,429 7,020 7,514 7,655 Net gain on sale of investment securities available-for-sale 16 — — 17 Other non-interest income 1,674 1,044 2,117 1,386 Total non-interest income 9,119 8,064 9,631 9,058 Non-interest expense: Intangible amortization expense 389 390 390 389 Other non-interest expense 17,669 16,911 17,192 16,713 Total non-interest expense 18,058 17,301 17,582 17,102 Income before tax 8,351 9,060 8,482 7,487 Income tax expense 2,765 2,942 2,754 2,431 Net income $ 5,586 $ 6,118 $ 5,728 $ 5,056 Earnings per common share: Basic $ 0.20 $ 0.22 $ 0.21 $ 0.18 Diluted $ 0.20 $ 0.22 $ 0.20 $ 0.18 2014 (Dollars in thousands, except per share data) Fourth Third Second First Income statement data: (unaudited) Interest income $ 20,933 $ 19,681 $ 18,991 $ 18,308 Interest expense 3,417 3,435 2,953 2,446 Net interest income 17,516 16,246 16,038 15,862 Provision (credit) for loan losses (209 ) 651 9,109 608 Net interest income after provision for loan losses 17,725 15,595 6,929 15,254 Non-interest income: Net gain on sale of investment securities available-for-sale — — 414 1,014 Other non-interest income 1,149 1,872 1,198 1,012 Total non-interest income 8,830 9,290 9,121 4,480 Non-interest expense: Intangible amortization expense 390 389 390 130 Acquisition earnout expense 1,614 — — — Other non-interest expense 17,374 16,284 15,094 12,662 Total non-interest expense 19,378 16,673 15,484 12,792 Income before tax 7,177 8,212 566 6,942 Income tax expense 2,085 2,506 52 2,326 Net income $ 5,092 $ 5,706 $ 514 $ 4,616 Earnings per common share: Basic $ 0.18 $ 0.20 $ 0.02 $ 0.16 Diluted $ 0.18 $ 0.20 $ 0.02 $ 0.16 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies (Details) | Mar. 05, 2014 | May. 14, 2013USD ($)$ / sharesshares | Dec. 31, 2015USD ($)officessubsidiary | Dec. 31, 2013shares |
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 (months) | 6 months | |||
Bad debt expense | $ 0 | |||
Allowance for uncollectible accounts | $ 0 | |||
Estimated useful lives of other intangible assets (years) | 155 months | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Original maturity of short-term investments (days) | 90 days | |||
Estimated useful lives of other intangible assets (years) | 20 years | |||
Estimated useful lives of office properties and equipment (years) | 10 years | |||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Past due period for loans (days) | 90 days | |||
Estimated useful lives of other intangible assets (years) | 4 years | |||
Estimated useful lives of office properties and equipment (years) | 3 years | |||
Common Stock | ||||
Significant Accounting Policies [Line Items] | ||||
Issuance of common stock | shares | 6,355,000 | 6,355,000 | ||
Initial public offering, shares sold pursuant to the exercise of options to purchase additional shares | shares | 855,000 | |||
Share price | $ / shares | $ 11.50 | |||
Proceeds from issuance initial public offering | $ 66,000,000 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ in Thousands | Dec. 16, 2015USD ($) | Mar. 05, 2014USD ($)client | Apr. 30, 2014USD ($)reserve | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | |||||||||||
Contingent consideration | $ 17,236 | $ 0 | $ 17,236 | $ 0 | |||||||
Acquisition earnout expense | $ 1,614 | $ 0 | $ 0 | $ 0 | $ 0 | 1,614 | 0 | ||||
Adjustment to purchase price | $ (777) | ||||||||||
Number of escrow reserves settled | reserve | 1 | ||||||||||
Number of escrow reserves | reserve | 3 | ||||||||||
The Killen Group, Inc. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Assets under management | $ 2,300,000 | ||||||||||
Fair value of total consideration | 15,000 | ||||||||||
Chartwell Investment Partners, L.P. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Assets under management | $ 7,500,000 | ||||||||||
Fair value of total consideration | $ 59,688 | 61,500 | |||||||||
Number of institutional clients | client | 150 | ||||||||||
Cash paid in acquisition | $ 45,000 | ||||||||||
Contingent consideration | $ 15,000 | ||||||||||
Acquisition earnout expense | $ (17,200) | ||||||||||
Adjustment to purchase price | $ (777) | ||||||||||
Acquisition related costs | $ 45 | $ 854 | |||||||||
Minimum | The Killen Group, Inc. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Fair value of total consideration | 30,000 | ||||||||||
Maximum | The Killen Group, Inc. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Fair value of total consideration | $ 35,000 | ||||||||||
Maximum | Chartwell Investment Partners, L.P. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Earn-outs percentage to be paid in common stock (up to) | 60.00% |
Business Combinations - Assets
Business Combinations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 05, 2014 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2013 |
Fair value of liabilities assumed: | ||||
Goodwill | $ 34,163 | $ 34,163 | $ 0 | |
Chartwell Investment Partners, L.P. | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 44,223 | |||
Estimated earnout, at closing | 15,465 | |||
Fair value of total consideration, at closing | 59,688 | $ 61,500 | ||
Fair value of assets acquired: | ||||
Cash and cash equivalents | 1,311 | |||
Investment management fees receivable | 5,304 | |||
Office properties and equipment | 90 | |||
Deferred tax asset | 813 | |||
Other assets | 144 | |||
Total assets acquired | 7,662 | |||
Fair value of liabilities assumed: | ||||
Other liabilities | 1,647 | |||
Total liabilities assumed | 1,647 | |||
Fair value net identifiable assets acquired | 6,015 | |||
Long-lived amortizable intangible assets acquired | 19,510 | |||
Goodwill | 34,163 | |||
Total net assets purchased | $ 59,688 |
Business Combination - Pro Form
Business Combination - Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Business Combinations [Abstract] | ||
Total revenue | $ 100,857 | $ 92,592 |
Net income | $ 16,568 | $ 15,196 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 0.58 | $ 0.58 |
Diluted (in dollars per share) | $ 0.57 | $ 0.57 |
Investment Securities - Availab
Investment Securities - Available-for-sale and Held-to-maturity Securities Investment Types (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investment securities available-for-sale: | ||
Amortized Cost | $ 170,337 | $ 167,232 |
Gross Unrealized Appreciation | 393 | 691 |
Gross Unrealized Depreciation | 2,411 | 1,351 |
Estimated Fair Value | 168,319 | 166,572 |
Investment securities held-to-maturity: | ||
Amortized Cost | 47,290 | 39,591 |
Gross Unrealized Appreciation | 894 | 537 |
Gross Unrealized Depreciation | 85 | 15 |
Investment securities held-to-maturity | 48,099 | 40,113 |
Amortized Cost | 217,627 | 206,823 |
Gross Unrealized Appreciation | 1,287 | 1,228 |
Gross Unrealized Depreciation | 2,496 | 1,366 |
Estimated Fair Value | 216,418 | 206,685 |
Corporate bonds | ||
Investment securities available-for-sale: | ||
Amortized Cost | 43,952 | 31,833 |
Gross Unrealized Appreciation | 18 | 3 |
Gross Unrealized Depreciation | 237 | 168 |
Estimated Fair Value | 43,733 | 31,668 |
Investment securities held-to-maturity: | ||
Amortized Cost | 19,448 | 14,452 |
Gross Unrealized Appreciation | 498 | 335 |
Gross Unrealized Depreciation | 84 | 0 |
Investment securities held-to-maturity | 19,862 | 14,787 |
Trust preferred securities | ||
Investment securities available-for-sale: | ||
Amortized Cost | 17,579 | 17,446 |
Gross Unrealized Appreciation | 0 | 0 |
Gross Unrealized Depreciation | 978 | 645 |
Estimated Fair Value | 16,601 | 16,801 |
Non-agency mortgage-backed securities | ||
Investment securities available-for-sale: | ||
Amortized Cost | 5,756 | 11,617 |
Gross Unrealized Appreciation | 0 | 0 |
Gross Unrealized Depreciation | 13 | 32 |
Estimated Fair Value | 5,743 | 11,585 |
Non-agency collateralized loan obligations | ||
Investment securities available-for-sale: | ||
Amortized Cost | 11,843 | |
Gross Unrealized Appreciation | 0 | |
Gross Unrealized Depreciation | 132 | |
Estimated Fair Value | 11,711 | |
Agency collateralized mortgage obligations | ||
Investment securities available-for-sale: | ||
Amortized Cost | 49,544 | 56,984 |
Gross Unrealized Appreciation | 92 | 127 |
Gross Unrealized Depreciation | 265 | 248 |
Estimated Fair Value | 49,371 | 56,863 |
Agency mortgage-backed securities | ||
Investment securities available-for-sale: | ||
Amortized Cost | 28,586 | 32,564 |
Gross Unrealized Appreciation | 270 | 502 |
Gross Unrealized Depreciation | 187 | 186 |
Estimated Fair Value | 28,669 | 32,880 |
Agency debentures | ||
Investment securities available-for-sale: | ||
Amortized Cost | 4,719 | 8,678 |
Gross Unrealized Appreciation | 13 | 59 |
Gross Unrealized Depreciation | 0 | 0 |
Estimated Fair Value | 4,732 | 8,737 |
Investment securities held-to-maturity: | ||
Amortized Cost | 2,453 | 5,000 |
Gross Unrealized Appreciation | 19 | 1 |
Gross Unrealized Depreciation | 0 | 0 |
Investment securities held-to-maturity | 2,472 | 5,001 |
Equity securities | ||
Investment securities available-for-sale: | ||
Amortized Cost | 8,358 | 8,110 |
Gross Unrealized Appreciation | 0 | 0 |
Gross Unrealized Depreciation | 599 | 72 |
Estimated Fair Value | 7,759 | 8,038 |
Municipal bonds | ||
Investment securities held-to-maturity: | ||
Amortized Cost | 25,389 | 20,139 |
Gross Unrealized Appreciation | 377 | 201 |
Gross Unrealized Depreciation | 1 | 15 |
Investment securities held-to-maturity | $ 25,765 | $ 20,325 |
Investment Securities - Avail61
Investment Securities - Available-for-sale Securities Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Due in one year or less | $ 7,058 | |
Due from one to five years | 36,894 | |
Due from five to ten years | 11,111 | |
Due after ten years | 106,916 | |
Available-for-Sale, Amortized Cost | 161,979 | |
Available-for-sale Securities, Debt Maturities, Estimated Fair Value | ||
Due in one year or less | 7,044 | |
Due from one to five years | 36,689 | |
Due from five to ten years | 11,030 | |
Due after ten years | 105,797 | |
Available-for-Sale, Estimated Fair Value | 160,560 | |
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount [Abstract] | ||
Due in one year or less | 0 | |
Due from one to five years | 12,078 | |
Due from five to ten years | 33,787 | |
Due after ten years | 1,425 | |
Held-to-Maturity Securities, Amortized Cost | 47,290 | $ 39,591 |
Held-to-maturity Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due in one year or less | 0 | |
Due from one to five years | 12,579 | |
Due from five to ten years | 34,042 | |
Due after ten years | 1,478 | |
Held-to-Maturity, Estimated Fair Value | $ 48,099 | $ 40,113 |
Investment Securities - Avail62
Investment Securities - Available-for-sale Securities Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale securities, Fair value, Less than 12 Months | $ 68,552 | $ 68,264 |
Available-for-sale securities, Unrealized losses, Less than 12 Months | 924 | 670 |
Available-for-sale securities, Fair value, 12 Months or More | 51,135 | 48,863 |
Available-for-sale securities, Unrealized losses, 12 Months or More | 1,487 | 681 |
Available-for-sale securities, Fair value, Total | 119,687 | 117,127 |
Available-for-sale securities, Unrealized Losses, Total | 2,411 | 1,351 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Held-to-maturity securities, Fair Value, Less than 12 Months | 10,434 | 2,857 |
Held-to-maturity securities, Unrealized Losses, Less than 12 Months | 85 | 2 |
Held-to-maturity securities, Fair Value, 12 Months or More | 0 | 1,446 |
Held-to-maturity securities, Unrealized Losses, 12 Months or Longer | 0 | 13 |
Held-to-maturity securities, Fair Value, Total | 10,434 | 4,303 |
Held-to-maturity securities, Unrealized Losses, Total | 85 | 15 |
Less than 12 Months, Fair Value, Total Impaired Securities | 78,986 | 71,121 |
Less than 12 Months, Unrealized losses, Total Impaired Securities | 1,009 | 672 |
12 Months or More, Fair Value, Total Impaired Securities | 51,135 | 50,309 |
12 Months or More, Unrealized losses, Total Impaired Securities | 1,487 | 694 |
Fair Value, Total Impaired Securities | 130,121 | 121,430 |
Unrealized Losses, Total Impaired Securities | 2,496 | 1,366 |
Corporate bonds | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale securities, Fair value, Less than 12 Months | 23,582 | 26,723 |
Available-for-sale securities, Unrealized losses, Less than 12 Months | 155 | 145 |
Available-for-sale securities, Fair value, 12 Months or More | 6,460 | 2,263 |
Available-for-sale securities, Unrealized losses, 12 Months or More | 82 | 23 |
Available-for-sale securities, Fair value, Total | 30,042 | 28,986 |
Available-for-sale securities, Unrealized Losses, Total | 237 | 168 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Held-to-maturity securities, Fair Value, Less than 12 Months | 9,863 | |
Held-to-maturity securities, Unrealized Losses, Less than 12 Months | 84 | |
Held-to-maturity securities, Fair Value, 12 Months or More | 0 | |
Held-to-maturity securities, Unrealized Losses, 12 Months or Longer | 0 | |
Held-to-maturity securities, Fair Value, Total | 9,863 | |
Held-to-maturity securities, Unrealized Losses, Total | 84 | |
Trust preferred securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale securities, Fair value, Less than 12 Months | 8,076 | 12,601 |
Available-for-sale securities, Unrealized losses, Less than 12 Months | 471 | 376 |
Available-for-sale securities, Fair value, 12 Months or More | 8,526 | 4,200 |
Available-for-sale securities, Unrealized losses, 12 Months or More | 507 | 269 |
Available-for-sale securities, Fair value, Total | 16,602 | 16,801 |
Available-for-sale securities, Unrealized Losses, Total | 978 | 645 |
Non-agency mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale securities, Fair value, Less than 12 Months | 0 | 11,585 |
Available-for-sale securities, Unrealized losses, Less than 12 Months | 0 | 32 |
Available-for-sale securities, Fair value, 12 Months or More | 5,743 | 0 |
Available-for-sale securities, Unrealized losses, 12 Months or More | 13 | 0 |
Available-for-sale securities, Fair value, Total | 5,743 | 11,585 |
Available-for-sale securities, Unrealized Losses, Total | 13 | 32 |
Non-agency collateralized loan obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale securities, Fair value, Less than 12 Months | 9,859 | |
Available-for-sale securities, Unrealized losses, Less than 12 Months | 132 | |
Available-for-sale securities, Fair value, 12 Months or More | 0 | |
Available-for-sale securities, Unrealized losses, 12 Months or More | 0 | |
Available-for-sale securities, Fair value, Total | 9,859 | |
Available-for-sale securities, Unrealized Losses, Total | 132 | |
Agency collateralized mortgage obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale securities, Fair value, Less than 12 Months | 25,566 | 9,317 |
Available-for-sale securities, Unrealized losses, Less than 12 Months | 151 | 45 |
Available-for-sale securities, Fair value, 12 Months or More | 11,836 | 30,327 |
Available-for-sale securities, Unrealized losses, 12 Months or More | 114 | 203 |
Available-for-sale securities, Fair value, Total | 37,402 | 39,644 |
Available-for-sale securities, Unrealized Losses, Total | 265 | 248 |
Agency mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale securities, Fair value, Less than 12 Months | 1,469 | 0 |
Available-for-sale securities, Unrealized losses, Less than 12 Months | 15 | 0 |
Available-for-sale securities, Fair value, 12 Months or More | 10,811 | 12,073 |
Available-for-sale securities, Unrealized losses, 12 Months or More | 172 | 186 |
Available-for-sale securities, Fair value, Total | 12,280 | 12,073 |
Available-for-sale securities, Unrealized Losses, Total | 187 | 186 |
Equity securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available-for-sale securities, Fair value, Less than 12 Months | 0 | 8,038 |
Available-for-sale securities, Unrealized losses, Less than 12 Months | 0 | 72 |
Available-for-sale securities, Fair value, 12 Months or More | 7,759 | 0 |
Available-for-sale securities, Unrealized losses, 12 Months or More | 599 | 0 |
Available-for-sale securities, Fair value, Total | 7,759 | 8,038 |
Available-for-sale securities, Unrealized Losses, Total | 599 | 72 |
Municipal bonds | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Held-to-maturity securities, Fair Value, Less than 12 Months | 571 | 2,857 |
Held-to-maturity securities, Unrealized Losses, Less than 12 Months | 1 | 2 |
Held-to-maturity securities, Fair Value, 12 Months or More | 0 | 1,446 |
Held-to-maturity securities, Unrealized Losses, 12 Months or Longer | 0 | 13 |
Held-to-maturity securities, Fair Value, Total | 571 | 4,303 |
Held-to-maturity securities, Unrealized Losses, Total | $ 1 | $ 15 |
Investment Securities - Avail63
Investment Securities - Available-for-sale Securities Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)position | Dec. 31, 2014USD ($)position | Dec. 31, 2013USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||
Investment securities, taxable interest income | $ 3,000,000 | $ 2,700,000 | $ 3,300,000 |
Investment securities, non-taxable interest income | 409,000 | 359,000 | 341,000 |
Dividend income | 249,000 | 110,000 | 0 |
Available-for-sale securities with a contractual maturity due after ten years | 105,797,000 | ||
Floating rate securities | $ 93,500,000 | ||
Percent of available-for-sale securities that are floating rate securities | 88.40% | ||
Amortized cost of debt securities held-to-maturity with a contractual maturity due from five to ten years | $ 33,787,000 | ||
Held to maturity securities that have call provisions in one to five years | 8,000,000 | ||
Proceeds from the sale of investment securities available-for-sale | 11,792,000 | 69,555,000 | 68,230,000 |
Gross realized gains on available-for-sale securities | 50,000 | 1,400,000 | 822,000 |
Gross realized losses on available-for-sale securities | $ 17,000 | $ 1,000 | 25,000 |
Number of available-for-sale positions in unrealized loss positions | position | 36 | 27 | |
Available-for-sale securities, temporarily impaired unrealized losses | $ 2,411,000 | $ 1,351,000 | |
Number of available-for-sale positions in unrealized loss positions, 12 Months or More | position | 14 | 9 | |
Available-for-sale securities, temporarily impaired unrealized losses, 12 Months or More | $ 1,487,000 | $ 681,000 | |
Number of held-to-maturity positions in unrealized loss positions | position | 6 | 5 | |
Held-to-maturity securities, temporarily impaired unrealized losses | $ 85,000 | $ 15,000 | |
Number of held-to-maturity positions in unrealized loss positions, 12 Months or More | position | 0 | 2 | |
Held-to-maturity securities, temporarily impaired unrealized losses,12 Months or More | $ 0 | $ 13,000 | |
Investment securities trading, at fair value | 0 | 0 | |
Proceeds from the sale of investment securities trading | 4,983,000 | 0 | 77,378,000 |
Income from investment securities trading | 20,000 | $ 0 | $ 120,000 |
Federal Home Loan Bank | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities available to be pledged as collateral for borrowings | $ 6,400,000 |
Loans - Loans Receivable by Cla
Loans - Loans Receivable by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment, net of deferred fees | $ 2,841,284 | $ 2,400,052 | ||
Less: allowance for loan losses | (17,974) | (20,273) | $ (18,996) | $ (17,874) |
Loans held-for-investment, net | 2,823,310 | 2,379,779 | ||
Loans receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment, before deferred fees | 2,841,708 | 2,401,703 | ||
Less: net deferred loan (fees) costs | (424) | (1,651) | ||
Loans held-for-investment, net of deferred fees | 2,841,284 | 2,400,052 | ||
Less: allowance for loan losses | (17,974) | (20,273) | ||
Loans held-for-investment, net | 2,823,310 | 2,379,779 | ||
Commercial and Industrial | Loans receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment, before deferred fees | 634,857 | 679,274 | ||
Less: net deferred loan (fees) costs | (625) | (1,781) | ||
Loans held-for-investment, net of deferred fees | 634,232 | 677,493 | ||
Less: allowance for loan losses | (11,064) | (13,501) | ||
Loans held-for-investment, net | 623,168 | 663,992 | ||
Commercial Real Estate | Loans receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment, before deferred fees | 864,863 | 735,531 | ||
Less: net deferred loan (fees) costs | (2,675) | (2,274) | ||
Loans held-for-investment, net of deferred fees | 862,188 | 733,257 | ||
Less: allowance for loan losses | (5,344) | (4,755) | ||
Loans held-for-investment, net | 856,844 | 728,502 | ||
Private Banking | Loans receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment, before deferred fees | 1,341,988 | 986,898 | ||
Less: net deferred loan (fees) costs | 2,876 | 2,404 | ||
Loans held-for-investment, net of deferred fees | 1,344,864 | 989,302 | ||
Less: allowance for loan losses | (1,566) | (2,017) | ||
Loans held-for-investment, net | $ 1,343,298 | $ 987,285 |
Loans - Narrative (Details)
Loans - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)letter | Dec. 31, 2014USD ($)letter | Apr. 11, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unfunded commitments, including letters of credit at prevailing market interest rates | $ 1,300,000 | $ 973,400 | |
Lending commitments maturing in the next 12 months | 892,000 | ||
Lending commitments maturing in second and third year, total | 225,800 | ||
Lending commitments maturing after third year | 150,300 | ||
Reserve for losses on unfunded commitments | 546 | 555 | |
Loan purchase agreement to acquire loans | $ 219,700 | ||
Loans in the process of origination | $ 31,100 | $ 18,700 | |
Interest only loans, percent | 67.70% | 63.90% | |
Loans and Leases Receivable with No Stated Maturity, Net Amount | $ 1,100,000 | $ 774,700 | |
Loans and Leases Receivable with Stated Maturity, Net Amount | $ 1,700,000 | $ 1,600,000 | |
Loan portfolio average remaining maturity (years) | 4 years | 4 years | |
Line of Credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest only loans, percent | 72.90% | 67.70% | |
Construction Loan Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest only loans, percent | 5.70% | 4.10% | |
Closed End Term Loan Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest only loans, percent | 21.40% | 28.20% | |
Adjustable Rate Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Variable rate loans, percent | 84.90% | 82.80% | |
Interest rates of variable rate loans equal to floors, percent | 5.90% | 12.40% | |
Average interest on variable rate loans, percent | 4.59% | 4.83% | |
Pennsylvania, Ohio, New Jersey, New York, And Contiguous States | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans to customers within the Company’s primary market areas, percent | 65.30% | 71.30% | |
Standby Letters of Credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unfunded commitments, including letters of credit at prevailing market interest rates | $ 89,900 | $ 89,300 | |
Standby letters of credit expiring in next 12 months | $ 36,800 | $ 26,600 | |
Number of letters of credit drawn | letter | 2 | 1 | |
Standby letters of credit drawn during period | $ 146 | $ 100 | |
Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans in the process of origination, disbursement period | 30 days | 30 days | |
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans in the process of origination, disbursement period | 60 days | 60 days |
Allowance for Loan Losses - Nar
Allowance for Loan Losses - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($)portfolioloans | Dec. 31, 2014USD ($)loans | Dec. 31, 2013USD ($)loans | Dec. 31, 2012USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | ||||
Number of loan portfolios | portfolio | 3 | |||
Charge-offs | $ 3,353,000 | $ 9,521,000 | $ 7,457,000 | |
Recoveries | 1,041,000 | 639,000 | 392,000 | |
Impaired and non-accrual loans | 17,170,000 | 30,760,000 | 20,820,000 | |
Impaired financing receivable, interest income, cash basis method | 0 | 0 | 0 | |
Loans 90 days or more past due and still accruing | 0 | 0 | ||
Impaired financing receivable, related allowance | 4,545,000 | 5,583,000 | 5,472,000 | |
Allowance for loan losses | 17,974,000 | 20,273,000 | 18,996,000 | $ 17,874,000 |
Impaired loans | 4,628,000 | 5,677,000 | 4,849,000 | |
Individually evaluated for impairment | 4,545,000 | 5,583,000 | ||
Troubled debt restructurings | 13,404,000 | 14,635,000 | ||
Unused commitments | 1,700,000 | 175,000 | ||
Payments to acquire real estate | 360,000 | |||
Other real estate | $ 1,700,000 | $ 1,400,000 | ||
Number of loans in process of foreclosure | loans | 2 | 0 | ||
Mortgage loans in process of foreclosure, value | $ 1,200,000 | |||
Commercial and Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Charge-offs | $ 3,353,000 | $ 9,521,000 | $ 5,508,000 | |
Number of loans with charge-offs | loans | 1 | 6 | 3 | |
Recoveries | $ 1,028,000 | $ 545,000 | $ 114,000 | |
Number of loans with recoveries | loans | 4 | 3 | 3 | |
Impaired and non-accrual loans | $ 12,310,000 | $ 25,193,000 | $ 16,203,000 | |
Impaired financing receivable, related allowance | 3,800,000 | 4,902,000 | 4,658,000 | |
Allowance for loan losses | 11,064,000 | 13,501,000 | 11,881,000 | 9,950,000 |
Impaired loans | 513,000 | 791,000 | 1,046,000 | |
Individually evaluated for impairment | 3,800,000 | 4,902,000 | ||
Commercial Real Estate | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Charge-offs | 0 | 0 | $ 1,936,000 | |
Number of loans with charge-offs | loans | 1 | |||
Recoveries | 0 | 0 | $ 278,000 | |
Number of loans with recoveries | loans | 3 | |||
Impaired and non-accrual loans | 2,912,000 | 3,498,000 | $ 3,498,000 | |
Impaired financing receivable, related allowance | 0 | 0 | 0 | |
Allowance for loan losses | 5,344,000 | 4,755,000 | 5,104,000 | 5,120,000 |
Impaired loans | 2,912,000 | 3,498,000 | 3,498,000 | |
Individually evaluated for impairment | 0 | 0 | ||
Private Banking | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Charge-offs | 0 | 0 | $ 13,000 | |
Number of loans with charge-offs | loans | 1 | |||
Recoveries | $ 13,000 | $ 94,000 | $ 0 | |
Number of loans with recoveries | loans | 1 | 1 | ||
Impaired and non-accrual loans | $ 1,948,000 | $ 2,069,000 | 1,119,000 | |
Impaired financing receivable, related allowance | 745,000 | 681,000 | 814,000 | |
Allowance for loan losses | 1,566,000 | 2,017,000 | 2,011,000 | $ 2,804,000 |
Impaired loans | 1,203,000 | 1,388,000 | 305,000 | |
Individually evaluated for impairment | 745,000 | 681,000 | ||
C&I, CRE and Private Banking Loans | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Impaired loans | $ 4,600,000 | $ 5,700,000 | ||
Impaired and Non-accrual | Commercial and Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Number of loans | loans | 3 | 2 | ||
Impaired and Non-accrual | Commercial Real Estate | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Number of loans | loans | 1 | 2 | ||
Impaired and Non-accrual | Private Banking | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Number of loans | loans | 2 | 3 | ||
Non-accrual | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Troubled debt restructurings | $ 12,894,000 | $ 14,107,000 | ||
Non-accrual | Commercial and Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Number of loans classified as TDR | loans | 5 | 3 | ||
Non-accrual | Commercial Real Estate | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Number of loans classified as TDR | loans | 1 | |||
Non-accrual | Private Banking | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Number of loans classified as TDR | loans | 1 | 2 | ||
Financing receivable, number of contracts, trouble debt restructuring in default | loans | 1 | |||
Payment defaults for loans modified as TDRs | $ 973,000 | $ 0 | $ 0 | |
Accruing interest | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Troubled debt restructurings | 510,000 | 528,000 | ||
Unused commitments | $ 39,000 | $ 54,000 | ||
Accruing interest | Commercial and Industrial | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Number of loans classified as TDR | loans | 1 | 1 | ||
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 | |||
Maximum | Non-rated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Percent of total loan portfolio | 3.00% | 4.30% | ||
Commercial Loan | Maximum | Non-rated | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Commercial loans exposure less then $500,000 | $ 500,000 | |||
Cash and Marketable Securities Collateral Risk | Financing Receivable | Private Banking | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Percentage of total private banking loans | 87.80% | 81.20% |
Allowance for Loan Losses - Cre
Allowance for Loan Losses - Credit Quality Indicator (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | $ 2,841,284 | $ 2,400,052 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 634,232 | 677,493 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 862,188 | 733,257 |
Private Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,344,864 | 989,302 |
Non-rated | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 85,530 | 104,357 |
Non-rated | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,017 | 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 | 83,513 | 104,228 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,701,240 | 2,227,697 |
Pass | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 583,544 | 617,396 |
Pass | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 858,396 | 729,066 |
Pass | Private Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,259,300 | 881,235 |
Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 32,743 | 28,465 |
Special mention | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 31,863 | 26,105 |
Special mention | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 880 | 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 | 20,798 | 34,586 |
Substandard | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 15,835 | 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 | 2,051 | 2,172 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 973 | 4,947 |
Doubtful | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 973 | 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 | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | $ 20,273 | $ 18,996 | $ 20,273 | $ 18,996 | $ 17,874 | ||||||
Provision for loan losses | $ 244 | $ (1,341) | $ 185 | 925 | $ (209) | $ 651 | $ 9,109 | 608 | 13 | 10,159 | 8,187 |
Charge-offs | (3,353) | (9,521) | (7,457) | ||||||||
Recoveries | 1,041 | 639 | 392 | ||||||||
Balance, end of period | 17,974 | 20,273 | 17,974 | 20,273 | 18,996 | ||||||
Commercial and Industrial | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | 13,501 | 11,881 | 13,501 | 11,881 | 9,950 | ||||||
Provision for loan losses | (112) | 10,596 | 7,325 | ||||||||
Charge-offs | (3,353) | (9,521) | (5,508) | ||||||||
Recoveries | 1,028 | 545 | 114 | ||||||||
Balance, end of period | 11,064 | 13,501 | 11,064 | 13,501 | 11,881 | ||||||
Commercial Real Estate | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | 4,755 | 5,104 | 4,755 | 5,104 | 5,120 | ||||||
Provision for loan losses | 589 | (349) | 1,642 | ||||||||
Charge-offs | 0 | 0 | (1,936) | ||||||||
Recoveries | 0 | 0 | 278 | ||||||||
Balance, end of period | 5,344 | 4,755 | 5,344 | 4,755 | 5,104 | ||||||
Private Banking | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | $ 2,017 | $ 2,011 | 2,017 | 2,011 | 2,804 | ||||||
Provision for loan losses | (464) | (88) | (780) | ||||||||
Charge-offs | 0 | 0 | (13) | ||||||||
Recoveries | 13 | 94 | 0 | ||||||||
Balance, end of period | $ 1,566 | $ 2,017 | $ 1,566 | $ 2,017 | $ 2,011 |
Allowance for Loan Losses - Ana
Allowance for Loan Losses - Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
30-59 Days Past Due | $ 0 | $ 547 |
60-89 Days Past Due | 0 | 2,299 |
Loans Past Due 90 Days or More | 5,319 | 3,870 |
Total Past Due | 5,319 | 6,716 |
Current | 2,835,965 | 2,393,336 |
Loans held-for-investment, net of deferred fees | 2,841,284 | 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 | 976 | 263 |
Total Past Due | 976 | 1,334 |
Current | 633,256 | 676,159 |
Loans held-for-investment, net of deferred fees | 634,232 | 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 | 859,276 | 729,759 |
Loans held-for-investment, net of deferred fees | 862,188 | 733,257 |
Private Banking | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 1,775 |
Loans Past Due 90 Days or More | 1,431 | 109 |
Total Past Due | 1,431 | 1,884 |
Current | 1,343,433 | 987,418 |
Loans held-for-investment, net of deferred fees | $ 1,344,864 | $ 989,302 |
Allowance for Loan Losses - Imp
Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Recorded Investment [Abstract] | |||
With a related allowance | $ 12,542 | $ 25,083 | $ 15,971 |
Without a related allowance | 4,628 | 5,677 | 4,849 |
Total | 17,170 | 30,760 | 20,820 |
Unpaid Principal Balance [Abstract] | |||
With a related allowance | 20,068 | 35,226 | 23,995 |
Without a related allowance | 12,304 | 13,350 | 12,264 |
Total | 32,372 | 48,576 | 36,259 |
Reserve established | 4,545 | 5,583 | 5,472 |
Average Recorded Investment [Abstract] | |||
With a related allowance | 16,155 | 27,760 | 14,135 |
Without a related allowance | 5,148 | 5,895 | 5,668 |
Total | 21,303 | 33,655 | 19,803 |
Interest Income Recognized [Abstract] | |||
With a related allowance | 0 | 0 | 0 |
Without a related allowance | 29 | 27 | 6 |
Total | 29 | 27 | 6 |
Commercial and Industrial | |||
Recorded Investment [Abstract] | |||
With a related allowance | 11,797 | 24,402 | 15,157 |
Without a related allowance | 513 | 791 | 1,046 |
Total | 12,310 | 25,193 | 16,203 |
Unpaid Principal Balance [Abstract] | |||
With a related allowance | 19,204 | 34,459 | 23,126 |
Without a related allowance | 1,789 | 2,013 | 2,264 |
Total | 20,993 | 36,472 | 25,390 |
Reserve established | 3,800 | 4,902 | 4,658 |
Average Recorded Investment [Abstract] | |||
With a related allowance | 15,331 | 27,014 | 13,261 |
Without a related allowance | 838 | 953 | 1,473 |
Total | 16,169 | 27,967 | 14,734 |
Interest Income Recognized [Abstract] | |||
With a related allowance | 0 | 0 | 0 |
Without a related allowance | 29 | 27 | 6 |
Total | 29 | 27 | 6 |
Commercial Real Estate | |||
Recorded Investment [Abstract] | |||
With a related allowance | 0 | 0 | 0 |
Without a related allowance | 2,912 | 3,498 | 3,498 |
Total | 2,912 | 3,498 | 3,498 |
Unpaid Principal Balance [Abstract] | |||
With a related allowance | 0 | 0 | 0 |
Without a related allowance | 9,067 | 9,705 | 9,705 |
Total | 9,067 | 9,705 | 9,705 |
Reserve established | 0 | 0 | 0 |
Average Recorded Investment [Abstract] | |||
With a related allowance | 0 | 0 | 0 |
Without a related allowance | 3,108 | 3,498 | 4,170 |
Total | 3,108 | 3,498 | 4,170 |
Interest Income Recognized [Abstract] | |||
With a related allowance | 0 | 0 | 0 |
Without a related allowance | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Private Banking | |||
Recorded Investment [Abstract] | |||
With a related allowance | 745 | 681 | 814 |
Without a related allowance | 1,203 | 1,388 | 305 |
Total | 1,948 | 2,069 | 1,119 |
Unpaid Principal Balance [Abstract] | |||
With a related allowance | 864 | 767 | 869 |
Without a related allowance | 1,448 | 1,632 | 295 |
Total | 2,312 | 2,399 | 1,164 |
Reserve established | 745 | 681 | 814 |
Average Recorded Investment [Abstract] | |||
With a related allowance | 824 | 746 | 874 |
Without a related allowance | 1,202 | 1,444 | 25 |
Total | 2,026 | 2,190 | 899 |
Interest Income Recognized [Abstract] | |||
With a related allowance | 0 | 0 | 0 |
Without a related allowance | 0 | 0 | 0 |
Total | $ 0 | $ 0 | $ 0 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for loan losses: | ||
Individually evaluated for impairment | $ 4,545 | $ 5,583 |
Collectively evaluated for impairment | 13,429 | 14,690 |
Total allowance for loan losses | 17,974 | 20,273 |
Loans held-for-investment: | ||
Individually evaluated for impairment | 17,170 | 30,760 |
Collectively evaluated for impairment | 2,824,114 | 2,369,292 |
Loans held-for-investment, net of deferred fees | 2,841,284 | 2,400,052 |
Commercial and Industrial | ||
Allowance for loan losses: | ||
Individually evaluated for impairment | 3,800 | 4,902 |
Collectively evaluated for impairment | 7,264 | 8,599 |
Total allowance for loan losses | 11,064 | 13,501 |
Loans held-for-investment: | ||
Individually evaluated for impairment | 12,310 | 25,193 |
Collectively evaluated for impairment | 621,922 | 652,300 |
Loans held-for-investment, net of deferred fees | 634,232 | 677,493 |
Commercial Real Estate | ||
Allowance for loan losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 5,344 | 4,755 |
Total allowance for loan losses | 5,344 | 4,755 |
Loans held-for-investment: | ||
Individually evaluated for impairment | 2,912 | 3,498 |
Collectively evaluated for impairment | 859,276 | 729,759 |
Loans held-for-investment, net of deferred fees | 862,188 | 733,257 |
Private Banking | ||
Allowance for loan losses: | ||
Individually evaluated for impairment | 745 | 681 |
Collectively evaluated for impairment | 821 | 1,336 |
Total allowance for loan losses | 1,566 | 2,017 |
Loans held-for-investment: | ||
Individually evaluated for impairment | 1,948 | 2,069 |
Collectively evaluated for impairment | 1,342,916 | 987,233 |
Loans held-for-investment, net of deferred fees | $ 1,344,864 | $ 989,302 |
Allowance for Loan Losses - Tro
Allowance for Loan Losses - Troubled Debt Restructuring (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | $ 13,404 | $ 14,635 |
Accruing interest | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 510 | 528 |
Non-accrual | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | $ 12,894 | $ 14,107 |
Allowance for Loan Losses - Mod
Allowance for Loan Losses - Modifications (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)loans | Dec. 31, 2014USD ($)loans | Dec. 31, 2013USD ($)loans | |
Financing Receivable, Modifications [Line Items] | |||
Count | loans | 4 | 2 | 4 |
Recorded Investment at the time of Modification | $ 11,346 | $ 6,484 | $ 9,858 |
Current Recorded Investment | 973 | 5,714 | 10,664 |
Allowance for Loan Losses at the time of Modification | 2,333 | 2,068 | 3,100 |
Current Allowance for Loan Losses | $ 172 | $ 1,120 | $ 2,457 |
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 | ||
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 | 973 | ||
Allowance for Loan Losses at the time of Modification | 1,500 | ||
Current Allowance for Loan Losses | $ 172 | ||
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 | 4,620 | ||
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 | 1,094 | ||
Allowance for Loan Losses at the time of Modification | 100 | ||
Current Allowance for Loan Losses | $ 0 | ||
Extended term | Commercial and Industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Count | loans | 1 | ||
Recorded Investment at the time of Modification | $ 2,691 | ||
Current Recorded Investment | 2,347 | ||
Allowance for Loan Losses at the time of Modification | 1,100 | ||
Current Allowance for Loan Losses | $ 1,100 | ||
Advanced additional funds | Commercial and Industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Count | loans | 2 | ||
Recorded Investment at the time of Modification | $ 6,957 | ||
Current Recorded Investment | 8,120 | ||
Allowance for Loan Losses at the time of Modification | 2,000 | ||
Current Allowance for Loan Losses | $ 1,357 | ||
Forgave principal | Private Banking | |||
Financing Receivable, Modifications [Line Items] | |||
Count | loans | 1 | ||
Recorded Investment at the time of Modification | $ 210 | ||
Current Recorded Investment | 197 | ||
Allowance for Loan Losses at the time of Modification | 0 | ||
Current Allowance for Loan Losses | $ 0 |
Federal Home Loan Bank Stock (D
Federal Home Loan Bank Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Federal Home Loan Bank Stock [Abstract] | |||
Federal Home Loan Bank membership minimum investment in capital stock on outstanding advances, percent | 4.00% | ||
Federal Home Loan Bank membership capital stock requirement on asset value, percent | 0.10% | ||
Federal Home Loan Bank stock | $ 9,802 | $ 5,730 | |
Federal Home Loan Bank minimum investment, required | 9,400 | ||
Federal Home Loan Bank membership basis for asset value, excluding advances | 601,500 | ||
Federal Home Loan Bank, advances | 220,000 | ||
Dividends received from holdings in FHLB capital stock | $ 389 | $ 172 | $ 19 |
Goodwill and Other Intangible75
Goodwill and Other Intangible Assets Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2014USD ($)reserve | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Additions | $ 0 | $ 34,163 | ||||||||||
Number of escrow reserves settled | reserve | 1 | |||||||||||
Number of escrow reserves | reserve | 3 | |||||||||||
Adjustment to purchase price | $ (777) | |||||||||||
Intangible amortization expense | $ 389 | $ 390 | $ 390 | $ 389 | $ 390 | $ 389 | $ 390 | $ 130 | $ 1,558 | $ 1,299 | $ 0 |
Goodwill and Other Intangible76
Goodwill and Other Intangible Assets Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 34,163 | $ 0 |
Additions | 0 | 34,163 |
Balance at end of period | $ 34,163 | $ 34,163 |
Goodwill and Other Intangible77
Goodwill and Other Intangible Assets Intangible Assets Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-lived Intangible Assets [Roll Forward] | |||||||||||
Gross carrying amount at beginning of period | $ 18,211 | $ 0 | $ 18,211 | $ 0 | |||||||
Additions | 0 | 19,510 | |||||||||
Accumulated amortization | $ (389) | $ (390) | $ (390) | $ (389) | $ (390) | $ (389) | $ (390) | $ (130) | (1,558) | (1,299) | $ 0 |
Balance at end of period | $ 16,653 | $ 18,211 | $ 16,653 | $ 18,211 | $ 0 |
Goodwill and Other Intangible78
Goodwill and Other Intangible Assets Intangible Assets by Class (Details) - USD ($) $ in Thousands | Mar. 05, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | $ 16,653 | $ 18,211 | $ 0 | |
Estimated Useful Life (months) | 155 months | |||
Trade name | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | 1,081 | 1,140 | ||
Estimated Useful Life (months) | 240 months | |||
Sub-advisory client list | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | 9,679 | 10,509 | ||
Estimated Useful Life (months) | 162 months | |||
Separate managed accounts client list | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | 894 | 1,004 | ||
Estimated Useful Life (months) | 120 months | |||
Other institutional client list | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | 4,958 | 5,499 | ||
Estimated Useful Life (months) | 132 months | |||
Non-compete agreements | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | $ 41 | $ 59 | ||
Estimated Useful Life (months) | 48 months |
Goodwill and Other Intangible79
Goodwill and Other Intangible Assets Intangible Assets Expected Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2,016 | $ 1,558 | ||
2,017 | 1,558 | ||
2,018 | 1,543 | ||
2,019 | 1,540 | ||
2,020 | 1,540 | ||
Thereafter | 8,914 | ||
Total | $ 16,653 | $ 18,211 | $ 0 |
Office Properties and Equipme80
Office Properties and Equipment - By Major Classification (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 11,843 | $ 10,808 |
Less: accumulated depreciation | (8,004) | (6,680) |
Net office properties and equipment | 3,839 | 4,128 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,890 | 7,208 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,953 | $ 3,600 |
Office Properties and Equipme81
Office Properties and Equipment - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 1,984 |
2,017 | 1,782 |
2,018 | 1,678 |
2,019 | 1,694 |
2,020 | 1,675 |
Thereafter | 858 |
Total | $ 9,671 |
Office Properties and Equipme82
Office Properties and Equipment - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2015 | Aug. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2015USD ($)officesrenewal | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2012USD ($) | |
Operating Lease Information [Line Items] | |||||||
Number of office locations accounted for as operating leases | offices | 6 | ||||||
Minimum number of lease renewal options | renewal | 1 | ||||||
Rent expense, operating lease | $ 2,300 | $ 1,900 | $ 1,500 | ||||
Depreciation, Depletion and Amortization [Abstract] | |||||||
Depreciation, depletion and amortization | 1,300 | $ 1,200 | $ 1,100 | ||||
NEW JERSEY | |||||||
Operating Lease Information [Line Items] | |||||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 62 months | ||||||
NEW YORK | |||||||
Operating Lease Information [Line Items] | |||||||
Operating lease renewal term | 74 months | 90 months | |||||
Pittsburgh | |||||||
Operating Lease Information [Line Items] | |||||||
Leasehold improvements allowance | 271 | $ 1,100 | |||||
Deferred rent credit | $ 937 |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits by Type (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Interest Rate Range Domestic Deposit Liabilities [Abstract] | ||
Interest-bearing checking accounts, percent, minimum | 0.05% | |
Interest-bearing checking accounts, percent, maximum | 0.50% | |
Money market deposit accounts, percent, minimum | 0.05% | |
Money market deposit accounts, percent, maximum | 1.50% | |
Time deposits, percent, minimum | 0.05% | |
Time deposits, percent, maximum | 1.39% | |
Weighted Average Rate Domestic Deposit Liabilities [Abstract] | ||
Interest-bearing checking accounts, percent | 0.42% | 0.42% |
Money market deposit accounts, percent | 0.50% | 0.39% |
Time deposits, percent | 0.78% | 0.69% |
Average rate paid on interest-bearing accounts, percent | 0.60% | 0.51% |
Domestic Deposit Liabilities, Demand and Savings Accounts [Abstract] | ||
Noninterest-bearing checking accounts | $ 159,859 | $ 177,606 |
Interest-bearing checking accounts | 136,037 | 75,679 |
Money market deposit accounts | 1,464,279 | 1,244,921 |
Total demand and savings accounts | 1,760,175 | 1,498,206 |
Time deposits | 929,669 | 838,747 |
Total deposit balance | $ 2,689,844 | $ 2,336,953 |
Deposits - Contractual Maturiti
Deposits - Contractual Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Time Deposits, Rolling Year Maturity [Abstract] | ||
12 months or less | $ 645,004 | $ 722,752 |
12 months to 24 months | 219,333 | 111,865 |
24 months to 36 months | 65,332 | 4,130 |
36 months to 48 months | 0 | 0 |
48 months to 60 months | 0 | 0 |
Over 60 months | 0 | 0 |
Total | $ 929,669 | $ 838,747 |
Deposits - Interest Expense on
Deposits - Interest Expense on Deposits by Deposit Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Expense, Deposits [Abstract] | |||
Interest-bearing checking accounts | $ 439 | $ 229 | $ 4 |
Money market deposit accounts | 5,687 | 4,228 | 3,756 |
Time deposits | 6,762 | 6,154 | 7,221 |
Total interest expense on deposits | $ 12,888 | $ 10,611 | $ 10,981 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Brokered deposits | $ 1,100 | $ 882.6 |
Certificate of Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS), brokered | 496.5 | 419.1 |
Time deposits, $100,000 or more, excluding brokered certificates of deposit | 409.2 | 376.6 |
Time Deposits, $250,000 or more, excluding brokered certificates of deposit | $ 142.7 | $ 81.5 |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Advances from Federal Home Loan Banks [Abstract] | |||
Ending Balance | $ 255,000 | $ 165,000 | |
TriState Capital Bank | Line of Credit | Federal Home Loan Bank | |||
Advances from Federal Home Loan Banks [Abstract] | |||
Ending Balance | $ 220,000 | $ 130,000 | |
Subordinated Notes Payable 5.75 Percent | Subordinated notes payable | |||
Advances from Federal Home Loan Banks [Abstract] | |||
Interest rate | 5.75% | 5.75% | 5.75% |
Ending Balance | $ 35,000 | $ 35,000 | $ 35,000 |
Maturity Date 1/4/2016 | FHLB borrowings | |||
Advances from Federal Home Loan Banks [Abstract] | |||
Interest rate | 0.51% | ||
Maturity Date 1/4/2016 | TriState Capital Bank | Line of Credit | Federal Home Loan Bank | |||
Advances from Federal Home Loan Banks [Abstract] | |||
Ending Balance | $ 170,000 | 0 | |
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 | 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 | $ 0 | |
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 | |
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 | |
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 | |
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 | |
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 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | 1 Months Ended | |||
Jun. 30, 2014 | Dec. 31, 2015 | Dec. 29, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Borrowings | $ 255,000,000 | $ 165,000,000 | ||
TriState Capital Bank | Federal Home Loan Bank | ||||
Debt Instrument [Line Items] | ||||
Loans pledged as collateral | 654,700,000 | |||
TriState Capital Bank | M&T Bank | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | 10,000,000 | |||
TriState Capital Bank | Texas Capital Bank | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | 20,000,000 | $ 25,000,000 | ||
Line of Credit | TriState Capital Bank | Federal Home Loan Bank | ||||
Debt Instrument [Line Items] | ||||
Borrowings | 220,000,000 | 130,000,000 | ||
Remaining borrowing capacity | 464,119,000 | |||
Agency bond | TriState Capital Bank | Federal Home Loan Bank | ||||
Debt Instrument [Line Items] | ||||
Bond security pledged as collateral, fair value | 6,400,000 | |||
Subordinated notes payable | Subordinated Notes Payable 5.75 Percent | ||||
Debt Instrument [Line Items] | ||||
Borrowings | $ 35,000,000 | $ 35,000,000 | $ 35,000,000 | |
Term | 5 years | |||
Interest rate | 5.75% | 5.75% | 5.75% |
Income Taxes Effective Income T
Income Taxes Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income tax provision (benefit) reconciled to taxes computed at the statutory federal rate | |||||||||||
Tax provision at statutory rate | $ 11,683 | $ 8,014 | $ 6,503 | ||||||||
Meals and entertainment | 103 | 84 | 57 | ||||||||
Dues and subscriptions | 116 | 123 | 102 | ||||||||
Keyman life insurance | 0 | 12 | 25 | ||||||||
Bank owned life insurance | (593) | (504) | (348) | ||||||||
State tax expense, net of federal benefit | 951 | 407 | 134 | ||||||||
Adjustments to prior year tax | (60) | (51) | 12 | ||||||||
Tax exempt income, net of disallowed interest | (160) | (145) | (109) | ||||||||
Unrecognized tax benefits | 0 | 11 | 110 | ||||||||
Investment tax credit | (1,198) | (1,022) | (909) | ||||||||
Other | 50 | 40 | 136 | ||||||||
Income tax provision | $ 2,765 | $ 2,942 | $ 2,754 | $ 2,431 | $ 2,085 | $ 2,506 | $ 52 | $ 2,326 | $ 10,892 | $ 6,969 | $ 5,713 |
Income Taxes - Income Tax Compo
Income Taxes - Income Tax Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||
Current income tax provision - federal | $ 9,917 | $ 7,549 | $ 7,823 | ||||||||
Current income tax provision (benefit) - state | 803 | 496 | (257) | ||||||||
Deferred tax provision (benefit) - federal | 225 | (735) | (1,804) | ||||||||
Deferred tax (benefit) - state | (53) | (341) | (49) | ||||||||
Income tax provision | $ 2,765 | $ 2,942 | $ 2,754 | $ 2,431 | $ 2,085 | $ 2,506 | $ 52 | $ 2,326 | $ 10,892 | $ 6,969 | $ 5,713 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Components of Deferred Tax Assets [Abstract] | ||
Net operating loss - state | $ 6 | $ 73 |
Start-up expenses | 163 | 190 |
Stock compensation | 2,709 | 2,606 |
Compensation related accruals | 5,145 | 2,897 |
Leasehold improvement | 100 | 133 |
Allowance for loan loss | 6,639 | 7,419 |
Long-term lease | 346 | 261 |
Reserve for unfunded commitments | 202 | 203 |
Supplemental executive retirement plan | 770 | 473 |
Transaction costs | 277 | 295 |
Intangibles | 183 | 81 |
Earnout liability non-purchase accounting | 653 | 671 |
Unrealized loss on investments | 846 | 362 |
Other | 417 | 198 |
Gross deferred tax assets | 18,456 | 15,862 |
Components of Deferred Tax Liabilities [Abstract] | ||
Office properties and equipment | (2,585) | (1,772) |
Deferred loan costs | (2,192) | (1,578) |
Goodwill | (1,169) | (393) |
State capital shares tax liability | (324) | (245) |
Gross deferred tax liability | (6,270) | (3,988) |
Net deferred tax asset | $ 12,186 | $ 11,874 |
Income Taxes - Change in Net De
Income Taxes - Change in Net Deferred Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Deferred tax benefit (expense) | $ (172) | $ 1,076 |
Deferred tax - other comprehensive income (loss) | 484 | (610) |
Deferred tax asset established related to acquisitions | 0 | 813 |
Change in net deferred tax asset | $ 312 | $ 1,279 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning of year balance | $ 0 | $ 110 | $ 0 |
Increases in prior period tax positions | 142 | 11 | 110 |
Decreases in prior period tax positions | 0 | 0 | 0 |
Increases in current period tax positions | 211 | 0 | 0 |
Settlements | 0 | (121) | 0 |
End of year balance | $ 353 | $ 0 | $ 110 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)transaction | Dec. 31, 2014USD ($)transaction | Dec. 31, 2013USD ($)transaction | |
Income Tax Disclosure [Abstract] | |||
Number of transactions entered for the financing of solar energy facilities | transaction | 5 | 4 | 3 |
Estimated unrecognized tax benefits | $ | $ 230 | $ 0 | $ 110 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Company | ||
Total risk-based capital (Amount) | ||
Actual capital | $ 326,378 | $ 302,217 |
Capital required for capital adequacy | $ 188,176 | $ 219,458 |
Total risk-based capital (Ratio) | ||
Actual capital | 13.88% | 11.02% |
Capital required for capital adequacy | 8.00% | 8.00% |
Tier 1 risk-based capital (Amount) | ||
Tier 1 risk based capital | $ 287,072 | $ 253,389 |
Tier 1 risk based capital required for capital adequacy | $ 141,132 | $ 109,729 |
Tier 1 risk-based capital (Ratio) | ||
Tier 1 risk based capital | 12.20% | 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 | $ 287,072 | |
Common equity tier one risk based capital required for capital adequacy | $ 105,849 | |
Common Equity Tier One RIsk Based Capital (Ratio) | ||
Common equity tier one risk based capital to risk weighted assets | 12.20% | |
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 | $ 287,072 | $ 253,389 |
Tier 1 leverage capital required for capital adequacy | $ 126,932 | $ 110,088 |
Tier 1 leverage (Ratio) | ||
Tier 1 leverage capital | 9.05% | 9.21% |
Tier 1 leverage capital required for capital adequacy | 4.00% | 4.00% |
TriState Capital Bank | ||
Total risk-based capital (Amount) | ||
Actual capital | $ 310,624 | $ 291,388 |
Capital required for capital adequacy | 186,077 | 218,013 |
Capital required to be well capitalized | $ 232,596 | $ 272,516 |
Total risk-based capital (Ratio) | ||
Actual capital | 13.35% | 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 | $ 292,234 | $ 270,560 |
Tier 1 risk based capital required for capital adequacy | 139,558 | 109,007 |
Tier 1 risk based capital required to be well capitalized | $ 186,077 | $ 163,510 |
Tier 1 risk-based capital (Ratio) | ||
Tier 1 risk based capital | 12.56% | 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 | $ 292,234 | |
Common equity tier one risk based capital required for capital adequacy | 104,668 | |
Common equity tier one risk based capital required to be well capitalized | $ 151,187 | |
Common Equity Tier One RIsk Based Capital (Ratio) | ||
Common equity tier one risk based capital to risk weighted assets | 12.56% | |
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 | $ 292,234 | $ 270,560 |
Tier 1 leverage capital required for capital adequacy | 125,870 | 109,498 |
Tier 1 leverage capital required to be well capitalized | $ 157,338 | $ 136,872 |
Tier 1 leverage (Ratio) | ||
Tier 1 leverage capital | 9.29% | 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 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer's contribution to employees' 401(k) plan, percent | 3.00% | 3.00% | 3.00% | |
Eligible age to participate in 401k plan | 21 years | |||
Contribution expense | $ 683 | $ 600 | $ 396 | |
Chief Executive Officer | Supplemental Employee Retirement Plans, 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 | $ 791 | $ 657 | $ 637 | |
Discount rate | 2.98% | 3.56% | 2.99% | |
Liability recorded | $ 2,100 | $ 1,300 | ||
Chief Executive Officer | Supplemental Employee Retirement Plans, Defined Benefit | Minimum | ||||
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 ($) | May. 14, 2013 | Aug. 10, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Oct. 31, 2014 |
Class of Stock [Line Items] | |||||||
Shares of preferred stock issued (shares) | 0 | 0 | 0 | ||||
Purchase of treasury stock | $ 3,158,000 | $ 6,746,000 | |||||
Total treasury stock repurchased (shares) | 1,000,000 | 678,891 | 1,000,000 | ||||
Total treasury stock repurchased | $ 9,904,000 | $ 6,746,000 | $ 9,904,000 | ||||
Treasury stock acquired, average cost per share (usd per share) | $ 9.84 | $ 9.90 | |||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Issuance of preferred stock (shares) | 6,355,000 | 6,355,000 | |||||
Initial public offering, shares sold pursuant to the exercise of options to purchase additional shares (shares) | 855,000 | ||||||
Share price (usd per share) | $ 11.50 | ||||||
Proceeds from issuance initial public offering | $ 66,000,000 | ||||||
Issuance of stock upon conversion (shares) | 4,878,049 | 4,878,049 | |||||
Stock repurchase, authorized amount (up to) | $ 10,000,000 | ||||||
Number of shares authorized to be repurchased (shares) (up to) | 1,000,000 | ||||||
Purchase of treasury stock (shares) | 321,109 | 678,891 | |||||
Purchase of treasury stock | $ 3,200,000 | $ 6,700,000 | |||||
Treasury stock acquired, average cost per share (usd per share) | $ 9.94 | ||||||
Preferred Stock (Series C) | |||||||
Class of Stock [Line Items] | |||||||
Issuance of preferred stock (shares) | 0 | ||||||
Shares of preferred stock issued (shares) | 48,780.488 | ||||||
Price per share (usd per share) | $ 1,025 | ||||||
Proceeds from issuance of convertible preferred stock | $ 46,000,000 | ||||||
Payments of stock issuance costs | $ 4,000,000 | ||||||
Convertible preferred stock, shares issued upon conversion (shares) | 100 | ||||||
Convertible preferred stock, maximum percent of voting stock owned after conversion | 24.90% | ||||||
Conversion of outstanding preferred stock (shares) | 48,780.488 | ||||||
Issuance of stock upon conversion (shares) | (48,780) | ||||||
Purchase of treasury stock (shares) | 0 | 0 | |||||
Preferred Stock (Series C) | LM III TriState Holdings LLC | |||||||
Class of Stock [Line Items] | |||||||
Percent by acquiree of preferred stock acquired | 69.1607% | ||||||
Preferred Stock (Series C) | LM III-A TriState Holdings LLC | |||||||
Class of Stock [Line Items] | |||||||
Percent by acquiree of preferred stock acquired | 30.8393% |
Stock Transactions - Shares Out
Stock Transactions - Shares Outstanding Activity (Details) - shares | May. 14, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Number of Common Shares Outstanding | ||||
Class of Stock [Line Items] | ||||
Balance, beginning of period | 28,060,888 | 28,690,279 | 17,444,730 | |
Issuance of common stock | 6,355,000 | 6,355,000 | ||
Conversion of preferred stock to common stock | 4,878,049 | 4,878,049 | ||
Issuance of restricted common stock | 282,916 | 27,000 | ||
Forfeitures of restricted common stock | (4,000) | |||
Exercise of stock options | 37,500 | 22,500 | 12,500 | |
Purchase of treasury stock | (321,109) | (678,891) | ||
Balance, end of period | 28,056,195 | 28,060,888 | 28,690,279 | |
Number of Preferred Shares Outstanding (Series C) | ||||
Class of Stock [Line Items] | ||||
Balance, beginning of period | 0 | 0 | 48,780 | |
Issuance of common stock | 0 | |||
Conversion of preferred stock to common stock | (48,780) | |||
Issuance of restricted common stock | 0 | 0 | ||
Forfeitures of restricted common stock | 0 | |||
Exercise of stock options | 0 | 0 | 0 | |
Purchase of treasury stock | 0 | 0 | ||
Balance, end of period | 0 | 0 | 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Earnings Per Share [Abstract] | |||||||||||||
Net income available to common shareholders | $ 22,488 | $ 15,928 | $ 12,867 | ||||||||||
Less: earnings allocated to participating stock | 0 | 0 | 867 | ||||||||||
Net income available to common shareholders, after required adjustments for the calculation of basic EPS | $ 22,488 | $ 15,928 | $ 12,000 | ||||||||||
Basic shares (shares) | 27,771,345 | 28,628,631 | 24,589,811 | ||||||||||
Preferred shares - dilutive (shares) | 0 | 0 | 1,777,481 | ||||||||||
Non-vested restricted stock - dilutive (shares) | 56,364 | 82 | 1,807 | ||||||||||
Stock options - dilutive (shares) | 409,744 | 389,193 | 373,924 | ||||||||||
Diluted shares (shares) | 28,237,453 | 29,017,906 | 26,743,023 | ||||||||||
Earnings per common share: | |||||||||||||
Basic (usd per share) | $ 0.20 | $ 0.22 | $ 0.21 | $ 0.18 | $ 0.18 | $ 0.20 | $ 0.02 | $ 0.16 | $ 0.81 | $ 0.56 | $ 0.49 | ||
Diluted (usd per share) | $ 0.20 | $ 0.22 | $ 0.20 | $ 0.18 | $ 0.18 | $ 0.20 | $ 0.02 | $ 0.16 | $ 0.80 | $ 0.55 | $ 0.48 | ||
Anti-dilutive shares (shares) | 721,893 | [1] | 779,732 | [1] | 590,500 | ||||||||
[1] | Included stock options and non-vested restricted shares not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive. |
Stock-Based Compensation Pro100
Stock-Based Compensation Programs Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Redemption of stock options | $ (229) | |||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense for options | $ 1,900 | $ 896 | $ 654 | |
2006 Stock Option Plan | Share-based Compensation Award, 2.5 years, Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting as a percent of total | 50.00% | |||
2006 Stock Option Plan | Share-based Compensation Award, fifth year, Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting as a percent of total | 50.00% | |||
2006 Stock Option Plan | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares outstanding | 769,643 | 816,232 | 641,500 | 674,500 |
Number of shares authorized for grant | 1,062,191 | |||
Number of options, redeemed | 77,000 | |||
Granted (usd per share) | $ 4.98 | $ 4.90 | $ 4.80 | |
Weighted average grant date fair value of options exercised (usd per share) | $ 4.38 | $ 5.08 | $ 4.30 | |
Total unrecognized compensation cost related to non-vested options granted under the plan | $ 2,600 | |||
Weighted average period over which unrecognized compensation cost is expected to be recognized | 3 years 1 month 6 days | |||
2006 Plan And Omnibus Plan | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized | 4,000,000 | |||
2006 Plan And Omnibus Plan | Employee Stock Option | Share-based Compensation Award, 2.5 years, Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years 6 months | |||
2006 Plan And Omnibus Plan | Employee Stock Option | Share-based Compensation Award, fifth year, Tranche Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
2006 Plan And Omnibus Plan | Employee Stock Options And Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares outstanding | 2,865,309 | |||
2006 Plan And Omnibus Plan | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average period over which unrecognized compensation cost is expected to be recognized | 2 years 2 months 12 days | |||
Compensation cost not yet recognized | $ 2,300 | |||
Omnibus Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting as a percent of total | 100.00% | |||
Omnibus Plan | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
Omnibus Plan | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting as a percent of total | 100.00% | |||
Vesting period | 3 years |
Stock-Based Compensation Pro101
Stock-Based Compensation Programs Valuation Assumptions (Details) - 2006 Stock Option Plan - Employee Stock Option | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 45.40% | 35.30% | 37.30% |
Expected term (years) | 6 years 10 months 24 days | 6 years 10 months 24 days | 6 years 10 months 24 days |
Risk-free interest rate | 1.60% | 2.30% | 1.90% |
Stock-Based Compensation Pro102
Stock-Based Compensation Programs Stock Option Activity (Details) - 2006 Stock Option Plan - Employee Stock Option - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of options, beginning of period | 2,509,732 | 2,266,500 | 2,193,000 | |
Number of options, granted | 205,661 | 309,732 | 119,000 | |
Number of options, exercised | 37,500 | 22,500 | 12,500 | |
Number of options, forfeited | 41,500 | 44,000 | 33,000 | |
Number of options, redeemed | 77,000 | |||
Number of options, expired | 0 | 0 | 0 | |
Number of options, end of period | 2,559,393 | 2,509,732 | 2,266,500 | 2,193,000 |
Number of options, exercisable | 1,789,750 | 1,693,500 | 1,625,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Weighted average exercise price, beginning of period (usd per share) | $ 10.28 | $ 10.03 | $ 9.97 | |
Weighted average exercise price, granted (usd per share) | 10.39 | 12.04 | 11.56 | |
Weighted average exercise price, exercised (usd per share) | 9.41 | 11.11 | 10 | |
Weighted average exercise price, forfeited (usd per share) | 10.75 | 9.66 | 11.16 | |
Weighted average exercise price, redeemed (usd per share) | 10 | |||
Weighted average exercise price, expired (usd per share) | 0 | 0 | 0 | |
Weighted average exercise price, end of period (usd per share) | 10.30 | 10.28 | 10.03 | $ 9.97 |
Weighted average exercise price, exercisable (usd per share) | $ 9.99 | $ 10.04 | $ 10.08 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Weighted average remaining contractual term (years) | 3 years 11 months 23 days | 4 years 6 months 7 days | 4 years 11 months 9 days | 5 years 8 months 9 days |
Weighted average remaining contractual term, exercisable (years) | 2 years 3 months 11 days | 2 years 8 months 29 days | 3 years 6 months 22 days |
Stock-Based Compensation Pro103
Stock-Based Compensation Programs Non-vested Stock Options Activity (Details) - 2006 Stock Option Plan - Employee Stock Option - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of options, beginning of period | 816,232 | 641,500 | 674,500 |
Number of options, granted | 205,661 | 309,732 | 119,000 |
Number of options, vested | 210,750 | 91,000 | 119,000 |
Number of options, forfeited | 41,500 | 44,000 | 33,000 |
Number of options, end of period | 769,643 | 816,232 | 641,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Weighted average grant-date fair value, beginning of year (usd per share) | $ 4.87 | $ 4.89 | $ 4.88 |
Weighted average grant-date fair value, granted (usd per share) | 4.98 | 4.90 | 4.80 |
Weighted average grant-date fair value, vested (usd per share) | 5.91 | 5.12 | 4.60 |
Weighted average grant-date Fair value, forfeited (usd per share) | 4.85 | 4.84 | 5.40 |
Weighted average grant-date fair value, end of year (usd per share) | $ 4.93 | $ 4.87 | $ 4.89 |
Stock-Based Compensation Pro104
Stock-Based Compensation Programs Non-vested Restricted Shares (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of restricted shares, beginning of period | 27,000 | 0 | 0 |
Number of restricted shares, grated | 282,916 | 27,000 | 0 |
Number of restricted shares, vested | 0 | 0 | 0 |
Number of restricted shares, forfeited | 4,000 | 0 | 0 |
Number of restricted shares, end of period | 305,916 | 27,000 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Weighted average grant-date fair value, beginning of period (usd per share) | $ 10.66 | $ 0 | $ 0 |
Weighted average grant-date fair value, granted (usd per share) | 10.54 | 10.66 | 0 |
Weighted average grant-date fair value, vested (usd per share) | 0 | 0 | 0 |
Weighted average grant-date fair value, forfeited (usd per share) | 10.57 | 0 | 0 |
Weighted average grant-date fair value, end of period (usd per share) | $ 10.55 | $ 10.66 | $ 0 |
Derivatives and Hedging Acti105
Derivatives and Hedging Activity - Fair Value of Company's Derivative Financial Instruments and Classification (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Designated as Hedging Instrument | Other Assets | ||
Derivative, Fair Value, Net [Abstract] | ||
Asset Derivatives, Fair Value | $ 0 | $ 0 |
Designated as Hedging Instrument | Other Liabilities | ||
Derivative, Fair Value, Net [Abstract] | ||
Liability Derivatives, Fair Value | 229 | 442 |
Not Designated as Hedging Instrument | Other Assets | ||
Derivative, Fair Value, Net [Abstract] | ||
Asset Derivatives, Fair Value | 8,662 | 6,327 |
Not Designated as Hedging Instrument | Other Liabilities | ||
Derivative, Fair Value, Net [Abstract] | ||
Liability Derivatives, Fair Value | $ 9,363 | $ 6,849 |
Derivatives and Hedging Acti106
Derivatives and Hedging Activity - Effect of the Company's Derivative Financial Instruments in the Consolidated Statements (Details) - Interest Rate Swap - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | $ (291) | $ (311) | $ (420) |
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | (174) | (423) | 154 |
Interest Income / Expense | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | (294) | (321) | (434) |
Non-interest Income / (Expense) | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | 3 | 10 | 14 |
Non-interest Income / (Expense) | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | $ (174) | $ (423) | $ 154 |
Derivatives and Hedging Acti107
Derivatives and Hedging Activity - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Interest_Rate_Swap | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Derivatives, Fair Value [Line Items] | |||
Derivative instruments, counterparty default loss | $ 0 | $ 0 | |
Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Termination value of derivatives, including accrued interest, in a net liability position | 9,500,000 | ||
Collateral already posted amount | 11,100,000 | ||
Interest Rate Swap | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Amount of gain or (loss) recognized in income on derivative | $ (291,000) | (311,000) | $ (420,000) |
Interest Rate Swap | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Number of interest rate derivatives | Interest_Rate_Swap | 140 | ||
Derivative, aggregate notional amount | $ 537,900,000 | ||
Amount of gain or (loss) recognized in income on derivative | (174,000) | (423,000) | 154,000 |
Interest Rate Swap | Non-interest Income / (Expense) | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Amount of gain or (loss) recognized in income on derivative | 3,000 | 10,000 | 14,000 |
Interest Rate Swap | Non-interest Income / (Expense) | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Amount of gain or (loss) recognized in income on derivative | (174,000) | (423,000) | 154,000 |
Interest Rate Swap | Interest Income / Expense | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Amount of gain or (loss) recognized in income on derivative | $ (294,000) | $ (321,000) | $ (434,000) |
Fair Value Hedging | Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Number of interest rate derivatives | Interest_Rate_Swap | 4 | ||
Derivative, aggregate notional amount | $ 3,200,000 |
Disclosures about Fair Value108
Disclosures about Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Total financial assets | $ 176,981 | $ 172,899 |
Financial liabilities: | ||
Total financial liabilities | 9,592 | 7,291 |
Level 1 | ||
Financial assets: | ||
Total financial assets | 7,759 | 8,038 |
Financial liabilities: | ||
Total financial liabilities | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Total financial assets | 169,222 | 164,861 |
Financial liabilities: | ||
Total financial liabilities | 9,592 | 7,291 |
Level 3 | ||
Financial assets: | ||
Total financial assets | 0 | 0 |
Financial liabilities: | ||
Total financial liabilities | 0 | 0 |
Corporate bonds | ||
Financial assets: | ||
Investment securities | 43,733 | 31,668 |
Corporate bonds | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Corporate bonds | Level 2 | ||
Financial assets: | ||
Investment securities | 43,733 | 31,668 |
Corporate bonds | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Trust preferred securities | ||
Financial assets: | ||
Investment securities | 16,601 | 16,801 |
Trust preferred securities | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Trust preferred securities | Level 2 | ||
Financial assets: | ||
Investment securities | 16,601 | 16,801 |
Trust preferred securities | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Non-agency mortgage-backed securities | ||
Financial assets: | ||
Investment securities | 5,743 | 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 | 5,743 | 11,585 |
Non-agency mortgage-backed securities | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Non-agency collateralized loan obligations | ||
Financial assets: | ||
Investment securities | 11,711 | |
Non-agency collateralized loan obligations | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | |
Non-agency collateralized loan obligations | Level 2 | ||
Financial assets: | ||
Investment securities | 11,711 | |
Non-agency collateralized loan obligations | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | |
Agency collateralized mortgage obligations | ||
Financial assets: | ||
Investment securities | 49,371 | 56,863 |
Agency collateralized mortgage obligations | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency collateralized mortgage obligations | Level 2 | ||
Financial assets: | ||
Investment securities | 49,371 | 56,863 |
Agency collateralized mortgage obligations | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency mortgage-backed securities | ||
Financial assets: | ||
Investment securities | 28,669 | 32,880 |
Agency mortgage-backed securities | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency mortgage-backed securities | Level 2 | ||
Financial assets: | ||
Investment securities | 28,669 | 32,880 |
Agency mortgage-backed securities | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency debentures | ||
Financial assets: | ||
Investment securities | 4,732 | 8,737 |
Agency debentures | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency debentures | Level 2 | ||
Financial assets: | ||
Investment securities | 4,732 | 8,737 |
Agency debentures | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Equity securities | ||
Financial assets: | ||
Investment securities | 7,759 | 8,038 |
Equity securities | Level 1 | ||
Financial assets: | ||
Investment securities | 7,759 | 8,038 |
Equity securities | Level 2 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Equity securities | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Interest Rate Swap | ||
Financial assets: | ||
Interest rate swaps | 8,662 | 6,327 |
Financial liabilities: | ||
Interest rate swaps | 9,592 | 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 | 8,662 | 6,327 |
Financial liabilities: | ||
Interest rate swaps | 9,592 | 7,291 |
Interest Rate Swap | Level 3 | ||
Financial assets: | ||
Interest rate swaps | 0 | 0 |
Financial liabilities: | ||
Interest rate swaps | $ 0 | $ 0 |
Disclosures about Fair Value109
Disclosures about Fair Value of Financial Instruments - Assets and Liabilities Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 1,730 | $ 1,370 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans measured for impairment, net | 12,625 | 25,177 |
Other real estate owned | 1,730 | 1,370 |
Total assets | 14,355 | 26,547 |
Fair Value, Measurements, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans measured for impairment, net | 0 | 0 |
Other real estate owned | 0 | 0 |
Total assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans measured for impairment, net | 0 | 0 |
Other real estate owned | 0 | 0 |
Total assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans measured for impairment, net | 12,625 | 25,177 |
Other real estate owned | 1,730 | 1,370 |
Total assets | $ 14,355 | $ 26,547 |
Disclosures about Fair Value110
Disclosures about Fair Value of Financial Instruments - Quantitative Information (Details) - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans measured for impairment, net | Appraisal value | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total financial assets | $ 5,428 | $ 7,559 |
Fair Value Inputs [Abstract] | ||
Discount due to salability conditions or lack of market data | 14.00% | 10.00% |
Loans measured for impairment, net | Discounted cash flow | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total financial assets | $ 7,197 | $ 17,618 |
Fair Value Inputs [Abstract] | ||
Discount due to salability conditions or lack of market data | 7.00% | 10.00% |
Other real estate owned | Appraisal value | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total financial assets | $ 1,730 | $ 1,370 |
Fair Value Inputs [Abstract] | ||
Discount due to salability conditions or lack of market data | 10.00% | 10.00% |
Disclosures about Fair Value111
Disclosures about Fair Value of Financial Instruments - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Investment securities available-for-sale | $ 160,560 | |
Investment securities held-to-maturity | 48,099 | $ 40,113 |
Investment management fees receivable | 6,191 | 6,818 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 96,676 | 105,710 |
Investment securities available-for-sale: equity | 7,759 | 8,038 |
Level 1 | Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 96,676 | 105,710 |
Investment securities available-for-sale: equity | 7,759 | 8,038 |
Level 2 | ||
Financial assets: | ||
Investment securities available-for-sale | 160,560 | 158,534 |
Investment securities held-to-maturity | 48,099 | 40,113 |
Accrued interest receivable | 7,056 | 6,279 |
Investment management fees receivable | 6,191 | 6,818 |
Federal Home Loan Bank stock | 9,802 | 5,730 |
Bank owned life insurance | 60,019 | 53,323 |
Interest rate swaps | 8,662 | 6,327 |
Financial liabilities: | ||
Deposits | 2,690,693 | 2,337,734 |
Borrowings | 255,179 | 165,163 |
Interest rate swaps | 9,592 | 7,291 |
Level 2 | Carrying Amount | ||
Financial assets: | ||
Investment securities available-for-sale | 160,560 | 158,534 |
Investment securities held-to-maturity | 47,290 | 39,591 |
Accrued interest receivable | 7,056 | 6,279 |
Investment management fees receivable | 6,191 | 6,818 |
Federal Home Loan Bank stock | 9,802 | 5,730 |
Bank owned life insurance | 60,019 | 53,323 |
Interest rate swaps | 8,662 | 6,327 |
Financial liabilities: | ||
Deposits | 2,689,844 | 2,336,953 |
Borrowings | 255,000 | 165,000 |
Interest rate swaps | 9,592 | 7,291 |
Level 3 | ||
Financial assets: | ||
Loans held-for-investment, net | 2,813,278 | 2,376,075 |
Other real estate owned | 1,730 | 1,370 |
Level 3 | Carrying Amount | ||
Financial assets: | ||
Loans held-for-investment, net | 2,823,310 | 2,379,779 |
Other real estate owned | $ 1,730 | $ 1,370 |
Disclosures about Fair Value112
Disclosures about Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Specific allowance for loan losses | $ 4,545 | $ 5,583 |
Adjusted fair value of collateral dependent impaired loans | 5,400 | 7,600 |
Adjusted fair value as a result of adjusting equilateral value of discounted cash flow | $ 7,200 | $ 17,600 |
Changes in Accumulated Other113
Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||
Balance, beginning of period | $ (627) | $ (627) | |||||||||
Other comprehensive income (loss) | (816) | $ 1,117 | $ (3,415) | ||||||||
Balance, end of period | $ (1,443) | $ (627) | (1,443) | (627) | |||||||
Net gain on the sale of investment securities available-for-sale | 16 | $ 0 | $ 0 | 17 | 0 | $ 0 | $ 414 | $ 1,014 | 33 | 1,428 | 797 |
Income tax expense | 2,765 | $ 2,942 | $ 2,754 | 2,431 | 2,085 | $ 2,506 | $ 52 | 2,326 | 10,892 | 6,969 | 5,713 |
Unrealized Gains and Losses on Investment Securities | |||||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||
Balance, beginning of period | $ (627) | $ (1,744) | (627) | (1,744) | 1,671 | ||||||
Change in unrealized holding gains (losses) | (795) | 2,034 | (2,903) | ||||||||
Gains reclassified from other comprehensive income (1) | (21) | (917) | (512) | ||||||||
Other comprehensive income (loss) | (816) | 1,117 | (3,415) | ||||||||
Balance, end of period | $ (1,443) | $ (627) | (1,443) | (627) | (1,744) | ||||||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Investment Securities | |||||||||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||
Net gain on the sale of investment securities available-for-sale | 33 | 1,400 | 797 | ||||||||
Income tax expense | $ 12 | $ 511 | $ 285 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - Systems consulting - Owned by a director $ in Millions | Dec. 31, 2015USD ($)loans |
Related Party Transaction [Line Items] | |
Loans outstanding to directors | $ 3 |
Number of loans outstanding to directors | loans | 3 |
Deposits outstanding from directors and their related interests | $ 5.9 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | $ 73 | $ 190 | $ 156 |
Interior design services | Owned by spouse of a director/executive officer | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | 0 | 0 | 22 |
Systems consulting | Owned by a director | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | 0 | 32 | 17 |
Aircraft charter | Owned by a director | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | $ 73 | $ 158 | $ 117 |
Condensed Parent Company Onl116
Condensed Parent Company Only Financial Statements - Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Balance Sheet Statement [Line Items] | ||||
Cash and cash equivalents | $ 96,676 | $ 105,710 | ||
Investment securities available-for-sale | 168,319 | 166,572 | ||
Prepaid expenses and other assets | 17,359 | 14,679 | ||
Total assets | 3,302,863 | 2,846,857 | ||
Borrowings | 255,000 | 165,000 | ||
Other accrued expenses and other liabilities | 30,280 | 20,543 | ||
Shareholders’ equity | 325,977 | 305,390 | $ 293,945 | $ 217,724 |
Total liabilities and shareholders’ equity | 3,302,863 | 2,846,857 | ||
Parent Company | ||||
Condensed Balance Sheet Statement [Line Items] | ||||
Cash and cash equivalents | 4,936 | 19,235 | ||
Investment securities available-for-sale | 7,759 | 8,038 | ||
Investment in subsidiaries | 348,966 | 312,811 | ||
Prepaid expenses and other assets | 772 | 1,373 | ||
Total assets | 362,433 | 341,457 | ||
Borrowings | 35,000 | 35,000 | ||
Other accrued expenses and other liabilities | 1,456 | 1,067 | ||
Shareholders’ equity | 325,977 | 305,390 | ||
Total liabilities and shareholders’ equity | $ 362,433 | $ 341,457 |
Condensed Parent Company Onl117
Condensed Parent Company Only Financial Statements - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Income Statement [Line Items] | |||||||||||
Total interest and dividend income | $ 21,846 | $ 20,940 | $ 20,426 | $ 19,995 | $ 20,933 | $ 19,681 | $ 18,991 | $ 18,308 | $ 83,207 | $ 77,913 | $ 72,851 |
Interest expense | 4,312 | 3,984 | 3,808 | 3,539 | 3,417 | 3,435 | 2,953 | 2,446 | 15,643 | 12,251 | 11,067 |
Net interest income | 17,534 | 16,956 | 16,618 | 16,456 | 17,516 | 16,246 | 16,038 | 15,862 | 67,564 | 65,662 | 61,784 |
Non-interest income | 9,119 | 8,064 | 9,631 | 9,058 | 8,830 | 9,290 | 9,121 | 4,480 | 35,872 | 31,721 | 5,798 |
Non-interest expense | 18,058 | 17,301 | 17,582 | 17,102 | 19,378 | 16,673 | 15,484 | 12,792 | 70,043 | 64,327 | 40,815 |
Income before tax | 8,351 | 9,060 | 8,482 | 7,487 | 7,177 | 8,212 | 566 | 6,942 | 33,380 | 22,897 | 18,580 |
Income tax expense | 2,765 | 2,942 | 2,754 | 2,431 | 2,085 | 2,506 | 52 | 2,326 | 10,892 | 6,969 | 5,713 |
Net income | $ 5,586 | $ 6,118 | $ 5,728 | $ 5,056 | $ 5,092 | $ 5,706 | $ 514 | $ 4,616 | 22,488 | 15,928 | 12,867 |
Parent Company | |||||||||||
Condensed Income Statement [Line Items] | |||||||||||
Interest income | 268 | 259 | 192 | ||||||||
Dividends received from subsidiaries | 2,510 | 2,480 | 0 | ||||||||
Total interest and dividend income | 2,778 | 2,739 | 192 | ||||||||
Interest expense | 2,215 | 1,266 | 0 | ||||||||
Net interest income | 563 | 1,473 | 192 | ||||||||
Non-interest income | 0 | 0 | 0 | ||||||||
Non-interest expense | 92 | 119 | 20 | ||||||||
Income before tax | 471 | 1,354 | 172 | ||||||||
Income tax expense | 67 | (467) | 54 | ||||||||
Net income | 404 | 1,821 | 118 | ||||||||
Undisbursed income of subsidiaries | 22,084 | 14,107 | 12,749 | ||||||||
Net income | $ 22,488 | $ 15,928 | $ 12,867 |
Condensed Parent Company Onl118
Condensed Parent Company Only Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Cash Flow Statement [Line Items] | |||
Amortization of deferred financing costs | $ 203 | $ 118 | $ 0 |
Increase (decrease) in accrued interest payable | 27 | 1,214 | (288) |
Net cash provided by operating activities | 31,690 | 28,348 | 32,552 |
Purchase of investment securities available-for-sale | (36,732) | (52,799) | (154,951) |
Net cash used in investing activities | (465,116) | (581,936) | (290,515) |
Net proceeds from issuance of subordinated notes payable | 0 | 33,988 | 0 |
Net proceeds from issuance of common stock | 0 | 0 | 65,990 |
Net proceeds from exercise of stock options | 353 | 250 | 125 |
Redemption of stock options | (229) | 0 | 0 |
Purchase of treasury stock | (3,158) | (6,746) | 0 |
Net cash provided by financing activities | 424,392 | 512,740 | 204,441 |
Net change in cash and cash equivalents during the period | (9,034) | (40,848) | (53,522) |
Cash and cash equivalents at beginning of the period | 105,710 | 146,558 | 200,080 |
Cash and cash equivalents at end of the period | 96,676 | 105,710 | 146,558 |
Parent Company | |||
Condensed Cash Flow Statement [Line Items] | |||
Net income | 22,488 | 15,928 | 12,867 |
Undisbursed income of subsidiaries | (22,084) | (14,107) | (12,749) |
Amortization of deferred financing costs | 203 | 118 | 0 |
Increase (decrease) in accrued interest payable | (143) | 1,149 | 0 |
Decrease (increase) in other assets | 587 | (453) | 14 |
(Decrease) increase in other liabilities | 532 | (123) | 41 |
Net cash provided by operating activities | 1,583 | 2,512 | 173 |
Purchase of investment securities available-for-sale | (248) | (8,110) | 0 |
Net payments for investments in subsidiaries | (12,600) | (69,580) | 0 |
Net cash used in investing activities | (12,848) | (77,690) | 0 |
Net proceeds from issuance of subordinated notes payable | 0 | 33,988 | 0 |
Net proceeds from issuance of common stock | 0 | 0 | 65,990 |
Net proceeds from exercise of stock options | 353 | 250 | 125 |
Redemption of stock options | (229) | 0 | 0 |
Purchase of treasury stock | (3,158) | (6,746) | 0 |
Net cash provided by financing activities | (3,034) | 27,492 | 66,115 |
Net change in cash and cash equivalents during the period | (14,299) | (47,686) | 66,288 |
Cash and cash equivalents at beginning of the period | 19,235 | 66,921 | 633 |
Cash and cash equivalents at end of the period | $ 4,936 | $ 19,235 | $ 66,921 |
Segments (Details)
Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Assets | $ 3,302,863 | $ 2,846,857 | $ 3,302,863 | $ 2,846,857 | |||||||
Income statement data: | |||||||||||
Interest income | 21,846 | $ 20,940 | $ 20,426 | $ 19,995 | 20,933 | $ 19,681 | $ 18,991 | $ 18,308 | 83,207 | 77,913 | $ 72,851 |
Interest expense | 4,312 | 3,984 | 3,808 | 3,539 | 3,417 | 3,435 | 2,953 | 2,446 | 15,643 | 12,251 | 11,067 |
Net interest income (loss) | 17,534 | 16,956 | 16,618 | 16,456 | 17,516 | 16,246 | 16,038 | 15,862 | 67,564 | 65,662 | 61,784 |
Provision for loan losses | 244 | (1,341) | 185 | 925 | (209) | 651 | 9,109 | 608 | 13 | 10,159 | 8,187 |
Net interest income (loss) after provision for loan losses | 17,290 | 18,297 | 16,433 | 15,531 | 17,725 | 15,595 | 6,929 | 15,254 | 67,551 | 55,503 | 53,597 |
Non-interest income: | |||||||||||
Investment management fees | 7,429 | 7,020 | 7,514 | 7,655 | 29,618 | 25,062 | 0 | ||||
Net gain on the sale of investment securities available-for-sale | 16 | 0 | 0 | 17 | 0 | 0 | 414 | 1,014 | 33 | 1,428 | 797 |
Other non-interest income | 1,674 | 1,044 | 2,117 | 1,386 | 1,149 | 1,872 | 1,198 | 1,012 | 6,221 | 5,231 | |
Total non-interest income | 9,119 | 8,064 | 9,631 | 9,058 | 8,830 | 9,290 | 9,121 | 4,480 | 35,872 | 31,721 | 5,798 |
Non-interest expense: | |||||||||||
Intangible amortization expense | 389 | 390 | 390 | 389 | 390 | 389 | 390 | 130 | 1,558 | 1,299 | 0 |
Acquisition earnout expense | 1,614 | 0 | 0 | 0 | 0 | 1,614 | 0 | ||||
Other non-interest expense | 68,485 | 61,414 | |||||||||
Total non-interest expense | 18,058 | 17,301 | 17,582 | 17,102 | 19,378 | 16,673 | 15,484 | 12,792 | 70,043 | 64,327 | 40,815 |
Income (loss) before tax | 8,351 | 9,060 | 8,482 | 7,487 | 7,177 | 8,212 | 566 | 6,942 | 33,380 | 22,897 | 18,580 |
Income tax expense (benefit) | 2,765 | 2,942 | 2,754 | 2,431 | 2,085 | 2,506 | 52 | 2,326 | 10,892 | 6,969 | 5,713 |
Net income | 5,586 | $ 6,118 | $ 5,728 | $ 5,056 | 5,092 | $ 5,706 | $ 514 | $ 4,616 | 22,488 | 15,928 | $ 12,867 |
Operating Segments | Bank | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 3,236,756 | 2,776,421 | 3,236,756 | 2,776,421 | |||||||
Income statement data: | |||||||||||
Interest income | 82,958 | 77,803 | |||||||||
Interest expense | 13,448 | 11,134 | |||||||||
Net interest income (loss) | 69,510 | 66,669 | |||||||||
Provision for loan losses | 13 | 10,159 | |||||||||
Net interest income (loss) after provision for loan losses | 69,497 | 56,510 | |||||||||
Non-interest income: | |||||||||||
Investment management fees | 0 | 0 | |||||||||
Net gain on the sale of investment securities available-for-sale | 33 | 1,428 | |||||||||
Other non-interest income | 6,229 | 5,193 | |||||||||
Total non-interest income | 6,262 | 6,621 | |||||||||
Non-interest expense: | |||||||||||
Intangible amortization expense | 0 | 0 | |||||||||
Acquisition earnout expense | 0 | ||||||||||
Other non-interest expense | 47,186 | 43,115 | |||||||||
Total non-interest expense | 47,186 | 43,115 | |||||||||
Income (loss) before tax | 28,573 | 20,016 | |||||||||
Income tax expense (benefit) | 8,347 | 5,909 | |||||||||
Net income | 20,226 | 14,107 | |||||||||
Operating Segments | Investment management | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 65,516 | 62,489 | 65,516 | 62,489 | |||||||
Income statement data: | |||||||||||
Interest income | 0 | 0 | |||||||||
Interest expense | 0 | 0 | |||||||||
Net interest income (loss) | 0 | 0 | |||||||||
Provision for loan losses | 0 | 0 | |||||||||
Net interest income (loss) after provision for loan losses | 0 | 0 | |||||||||
Non-interest income: | |||||||||||
Investment management fees | 29,814 | 25,219 | |||||||||
Net gain on the sale of investment securities available-for-sale | 0 | 0 | |||||||||
Other non-interest income | (8) | 38 | |||||||||
Total non-interest income | 29,806 | 25,257 | |||||||||
Non-interest expense: | |||||||||||
Intangible amortization expense | 1,558 | 1,299 | |||||||||
Acquisition earnout expense | 1,614 | ||||||||||
Other non-interest expense | 21,403 | 18,338 | |||||||||
Total non-interest expense | 22,961 | 21,251 | |||||||||
Income (loss) before tax | 6,845 | 4,006 | |||||||||
Income tax expense (benefit) | 2,477 | 1,527 | |||||||||
Net income | 4,368 | 2,479 | |||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 591 | $ 7,947 | 591 | 7,947 | |||||||
Income statement data: | |||||||||||
Interest income | 249 | 110 | |||||||||
Interest expense | 2,195 | 1,117 | |||||||||
Net interest income (loss) | (1,946) | (1,007) | |||||||||
Provision for loan losses | 0 | 0 | |||||||||
Net interest income (loss) after provision for loan losses | (1,946) | (1,007) | |||||||||
Non-interest income: | |||||||||||
Investment management fees | (196) | (157) | |||||||||
Net gain on the sale of investment securities available-for-sale | 0 | 0 | |||||||||
Other non-interest income | 0 | 0 | |||||||||
Total non-interest income | (196) | (157) | |||||||||
Non-interest expense: | |||||||||||
Intangible amortization expense | 0 | 0 | |||||||||
Acquisition earnout expense | 0 | ||||||||||
Other non-interest expense | (104) | (39) | |||||||||
Total non-interest expense | (104) | (39) | |||||||||
Income (loss) before tax | (2,038) | (1,125) | |||||||||
Income tax expense (benefit) | 68 | (467) | |||||||||
Net income | $ (2,106) | $ (658) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jan. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 31, 2014 |
Subsequent Event [Line Items] | ||||
Common stock shares outstanding | 28,056,195 | 28,060,888 | ||
Common Stock | ||||
Subsequent Event [Line Items] | ||||
Stock repurchase, authorized amount (up to) | $ 10,000,000 | |||
Number of shares authorized to be repurchased (shares) (up to) | 1,000,000 | |||
Shares authorized of total common shares outstanding, percent (up to) | 3.60% | |||
Common Stock | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Stock repurchase, authorized amount (up to) | $ 10,000,000 | |||
Number of shares authorized to be repurchased (shares) (up to) | 1,000,000 |
Selected Quarterly Financial121
Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 21,846 | $ 20,940 | $ 20,426 | $ 19,995 | $ 20,933 | $ 19,681 | $ 18,991 | $ 18,308 | $ 83,207 | $ 77,913 | $ 72,851 |
Interest expense | 4,312 | 3,984 | 3,808 | 3,539 | 3,417 | 3,435 | 2,953 | 2,446 | 15,643 | 12,251 | 11,067 |
Net interest income | 17,534 | 16,956 | 16,618 | 16,456 | 17,516 | 16,246 | 16,038 | 15,862 | 67,564 | 65,662 | 61,784 |
Provision (credit) for loan losses | 244 | (1,341) | 185 | 925 | (209) | 651 | 9,109 | 608 | 13 | 10,159 | 8,187 |
Net interest income after provision for loan losses | 17,290 | 18,297 | 16,433 | 15,531 | 17,725 | 15,595 | 6,929 | 15,254 | 67,551 | 55,503 | 53,597 |
Investment management fees | 7,429 | 7,020 | 7,514 | 7,655 | 29,618 | 25,062 | 0 | ||||
Net gain on sale of investment securities available-for-sale | 16 | 0 | 0 | 17 | 0 | 0 | 414 | 1,014 | 33 | 1,428 | 797 |
Other non-interest income | 1,674 | 1,044 | 2,117 | 1,386 | 1,149 | 1,872 | 1,198 | 1,012 | 6,221 | 5,231 | |
Total non-interest income | 9,119 | 8,064 | 9,631 | 9,058 | 8,830 | 9,290 | 9,121 | 4,480 | 35,872 | 31,721 | 5,798 |
Intangible amortization expense | 389 | 390 | 390 | 389 | 390 | 389 | 390 | 130 | 1,558 | 1,299 | 0 |
Acquisition earnout expense | 1,614 | 0 | 0 | 0 | 0 | 1,614 | 0 | ||||
Other non-interest expense | 17,669 | 16,911 | 17,192 | 16,713 | 17,374 | 16,284 | 15,094 | 12,662 | 5,071 | 4,391 | 2,345 |
Total non-interest expense | 18,058 | 17,301 | 17,582 | 17,102 | 19,378 | 16,673 | 15,484 | 12,792 | 70,043 | 64,327 | 40,815 |
Income before tax | 8,351 | 9,060 | 8,482 | 7,487 | 7,177 | 8,212 | 566 | 6,942 | 33,380 | 22,897 | 18,580 |
Income tax expense | 2,765 | 2,942 | 2,754 | 2,431 | 2,085 | 2,506 | 52 | 2,326 | 10,892 | 6,969 | 5,713 |
Net income | $ 5,586 | $ 6,118 | $ 5,728 | $ 5,056 | $ 5,092 | $ 5,706 | $ 514 | $ 4,616 | $ 22,488 | $ 15,928 | $ 12,867 |
Basic (usd per share) | $ 0.20 | $ 0.22 | $ 0.21 | $ 0.18 | $ 0.18 | $ 0.20 | $ 0.02 | $ 0.16 | $ 0.81 | $ 0.56 | $ 0.49 |
Diluted (usd per share) | $ 0.20 | $ 0.22 | $ 0.20 | $ 0.18 | $ 0.18 | $ 0.20 | $ 0.02 | $ 0.16 | $ 0.80 | $ 0.55 | $ 0.48 |