Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 15, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TriState Capital Holdings, Inc. | |
Entity Central Index Key | 1,380,846 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 28,215,282 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash | $ 57 | $ 294 |
Interest-earning deposits with other institutions | 109,201 | 91,097 |
Federal funds sold | 5,039 | 5,285 |
Cash and cash equivalents | 114,297 | 96,676 |
Investment securities available-for-sale, at fair value (cost: $185,160 and $170,337, respectively) | 183,811 | 168,319 |
Investment securities held-to-maturity, at cost (fair value: $45,931 and $48,099, respectively) | 44,774 | 47,290 |
Federal Home Loan Bank stock | 13,632 | 9,802 |
Total investment securities | 242,217 | 225,411 |
Loans held-for-investment | 2,997,309 | 2,841,284 |
Allowance for loan losses | (17,215) | (17,974) |
Loans held-for-investment, net | 2,980,094 | 2,823,310 |
Accrued interest receivable | 7,774 | 7,056 |
Investment management fees receivable | 7,674 | 6,191 |
Goodwill and other intangibles, net | 68,134 | 50,816 |
Office properties and equipment, net | 3,563 | 3,839 |
Bank owned life insurance | 60,905 | 60,019 |
Deferred tax asset, net | 11,499 | 12,186 |
Prepaid expenses and other assets | 32,434 | 16,667 |
Total assets | 3,528,591 | 3,302,171 |
Liabilities: | ||
Deposits | 2,888,192 | 2,689,844 |
Borrowings, net | 259,409 | 254,308 |
Accrued interest payable on deposits and borrowings | 1,927 | 1,762 |
Other accrued expenses and other liabilities | 41,369 | 30,280 |
Total liabilities | 3,190,897 | 2,976,194 |
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 - 29,469,004 and 29,056,195, respectively; Shares outstanding - 28,211,282 and 28,056,195, respectively | 281,708 | 281,412 |
Additional paid-in capital | 12,424 | 10,809 |
Retained earnings | 57,719 | 45,103 |
Accumulated other comprehensive income (loss), net | (1,076) | (1,443) |
Treasury stock (1,257,722 and 1,000,000 shares, respectively) | (13,081) | (9,904) |
Total shareholders’ equity | 337,694 | 325,977 |
Total liabilities and shareholders’ equity | $ 3,528,591 | $ 3,302,171 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Shares Authorized, Preferred Stock | 150,000 | 150,000 |
Shares Issued, Preferred Stock | 0 | 0 |
Shares Authorized, Common Stock | 45,000,000 | 45,000,000 |
Shares Issued, Common Stock | 29,469,004 | 29,056,195 |
Shares Outstanding, Common Stock | 28,211,282 | 28,056,195 |
Treasury Stock | 1,257,722 | 1,000,000 |
Investments AFS (cost) | $ 185,160 | $ 170,337 |
Investments HTM (fair value) | $ 45,931 | $ 48,099 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income: | ||||
Loans | $ 22,343 | $ 19,541 | $ 44,320 | $ 38,641 |
Investments | 1,312 | 851 | 2,557 | 1,850 |
Interest-earning deposits | 140 | 89 | 278 | 192 |
Total interest income | 23,795 | 20,481 | 47,155 | 40,683 |
Interest expense: | ||||
Deposits | 4,603 | 3,176 | 8,741 | 6,068 |
Borrowings | 973 | 632 | 1,818 | 1,279 |
Total interest expense | 5,576 | 3,808 | 10,559 | 7,347 |
Net interest income | 18,219 | 16,673 | 36,596 | 33,336 |
Provision for loan losses | 80 | 185 | 202 | 1,110 |
Net interest income after provision for loan losses | 18,139 | 16,488 | 36,394 | 32,226 |
Non-interest income: | ||||
Investment management fees | 9,462 | 7,514 | 16,481 | 15,169 |
Service charges | 123 | 176 | 259 | 339 |
Net gain on the sale and call of investment securities | 62 | 0 | 63 | 17 |
Swap fees | 1,205 | 697 | 2,445 | 1,014 |
Commitment and other fees | 507 | 493 | 1,009 | 1,000 |
Other income | 88 | 696 | 105 | 888 |
Total non-interest income | 11,447 | 9,576 | 20,362 | 18,427 |
Non-interest expense: | ||||
Compensation and employee benefits | 12,807 | 11,604 | 24,740 | 23,018 |
Premises and occupancy costs | 1,169 | 1,144 | 2,298 | 2,266 |
Professional fees | 989 | 885 | 1,790 | 1,761 |
FDIC insurance expense | 568 | 545 | 1,090 | 1,013 |
General insurance expense | 265 | 313 | 510 | 607 |
State capital shares tax | 328 | 309 | 657 | 582 |
Travel and entertainment expense | 845 | 636 | 1,422 | 1,162 |
Data processing expense | 285 | 268 | 577 | 530 |
Intangible amortization expense | 438 | 390 | 828 | 779 |
Other operating expenses | 1,763 | 1,488 | 3,551 | 2,966 |
Total non-interest expense | 19,457 | 17,582 | 37,463 | 34,684 |
Income before tax | 10,129 | 8,482 | 19,293 | 15,969 |
Income tax expense | 3,356 | 2,754 | 6,677 | 5,185 |
Net income | $ 6,773 | $ 5,728 | $ 12,616 | $ 10,784 |
Earnings per common share: | ||||
Basic | $ 0.25 | $ 0.21 | $ 0.46 | $ 0.39 |
Diluted | $ 0.24 | $ 0.20 | $ 0.45 | $ 0.38 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 6,773 | $ 5,728 | $ 12,616 | $ 10,784 |
Other comprehensive income: | ||||
Unrealized holding gains on investment securities net of tax expense of $622, $72, $295 and $243 | 1,114 | 130 | 464 | 423 |
Reclassification adjustment for gains included in net income on investment securities, net of tax expense of $22, $0, $22 and $6 | (40) | 0 | (41) | (11) |
Unrealized holding losses on derivatives net of tax benefit of $(31), $0, $(31) and $0 | (56) | 0 | (56) | 0 |
Other comprehensive income | 1,018 | 130 | 367 | 412 |
Total comprehensive income | $ 7,791 | $ 5,858 | $ 12,983 | $ 11,196 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized holding gains on investment securities net of tax expense of $622, $72, $295 and $243 | $ 622 | $ 72 | $ 295 | $ 243 |
Reclassification adjustment for gains included in net income on investment securities, net of tax expense of $22, $0, $22 and $6 | 22 | 0 | 22 | 6 |
Unrealized holding losses on derivatives net of tax benefit of $(31), $0, $(31) and $0 | $ (31) | $ 0 | $ (31) | $ 0 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), net | Treasury Stock |
Beginning Balance at Dec. 31, 2014 | $ 305,390 | $ 280,895 | $ 9,253 | $ 22,615 | $ (627) | $ (6,746) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 10,784 | 10,784 | ||||
Other comprehensive income (loss) | 412 | 412 | ||||
Exercise of stock options | 50 | 71 | (21) | |||
Purchase of treasury stock | (3,158) | (3,158) | ||||
Stock-based compensation | 920 | 920 | ||||
Ending Balance at Jun. 30, 2015 | 314,398 | 280,966 | 10,152 | 33,399 | (215) | (9,904) |
Beginning Balance at Dec. 31, 2015 | 325,977 | 281,412 | 10,809 | 45,103 | (1,443) | (9,904) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 12,616 | 12,616 | ||||
Other comprehensive income (loss) | 367 | 367 | ||||
Exercise of stock options | 214 | 296 | (82) | |||
Purchase of treasury stock | (3,177) | (3,177) | ||||
Stock-based compensation | 1,697 | 1,697 | ||||
Ending Balance at Jun. 30, 2016 | $ 337,694 | $ 281,708 | $ 12,424 | $ 57,719 | $ (1,076) | $ (13,081) |
Unaudited Condensed Consolidat8
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows from Operating Activities: | ||
Net income | $ 12,616 | $ 10,784 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and intangible amortization expense | 1,461 | 1,459 |
Amortization of deferred financing costs | 101 | 101 |
Provision for loan losses | 202 | 1,110 |
Stock-based compensation expense | 1,697 | 920 |
Net gain on the sale of investment securities available-for-sale | (17) | (17) |
Net gain on the call of investment securities held-to-maturity | (46) | 0 |
Net amortization of premiums and discounts | 458 | 358 |
(Increase) decrease in investment management fees receivable | (571) | 288 |
Increase in accrued interest receivable | (718) | (213) |
Increase (decrease) in accrued interest payable | 165 | (44) |
Bank owned life insurance income | (886) | (810) |
Decrease in income taxes payable | (353) | 0 |
(Increase) decrease in prepaid income taxes | (3,045) | 219 |
Increase (decrease) in accounts payable and other accrued expenses | (6,961) | 1,668 |
Payment of contingent consideration impacting operations | 0 | 1,771 |
Other, net | 1,056 | (1,649) |
Net cash provided by operating activities | 5,159 | 12,403 |
Cash Flows from Investing Activities: | ||
Purchase of investment securities available-for-sale | (22,354) | (27,612) |
Purchase of investment securities held-to-maturity | 0 | (11,963) |
Proceeds from the sale of investment securities available-for-sale | 3,040 | 9,734 |
Principal repayments and maturities of investment securities available-for-sale | 4,140 | 13,105 |
Principal repayments and maturities of investment securities held-to-maturity | 2,500 | 6,540 |
Purchase of bank owned life insurance | 0 | 5,000 |
Net redemption (purchase) of Federal Home Loan Bank stock | (3,830) | 1,328 |
Net increase in loans | (158,182) | (158,535) |
Proceeds from loan sales | 1,196 | 184 |
Additions to office properties and equipment | (338) | (828) |
Acquisition, net of acquired cash | 14,095 | 0 |
Net cash used in investing activities | (187,923) | (173,047) |
Cash Flows from Financing Activities: | ||
Net increase in deposit accounts | 198,348 | 213,742 |
Net increase in Federal Home Loan Bank advances | 5,000 | 0 |
Net decrease in Federal Home Loan Bank advances | 0 | (40,000) |
Net proceeds from exercise of stock options | 214 | 50 |
Payment of contingent consideration | 0 | 15,465 |
Purchase of treasury stock | (3,177) | (3,158) |
Net cash provided by financing activities | 200,385 | 155,169 |
Net change in cash and cash equivalents during the period | 17,621 | (5,475) |
Cash and cash equivalents at beginning of the period | 96,676 | 105,710 |
Cash and cash equivalents at end of the period | 114,297 | 100,235 |
Cash paid during the period for: | ||
Interest | 10,293 | 7,291 |
Income taxes | 8,841 | 4,659 |
Acquisition of non-cash assets and liabilities: | ||
Assets acquired | 1,038 | 0 |
Liabilities assumed | 1,402 | 0 |
Other non-cash activity: | ||
Loan foreclosures and repossessions | 0 | 396 |
Unsettled purchase of investment securities available-for-sale | 0 | 2,993 |
Business Combination, Contingent Consideration, Liability | 3,687 | 0 |
Transfer of loans held-for-investment to held-for-sale | $ 0 | $ 4,084 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
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”). 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 and had assets under management of $10.59 billion as of June 30, 2016 . CTSC Securities has 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. Chartwell was established through the acquisition of substantially all the assets of Chartwell Investment Partners, LP that was effective March 5, 2014. CTSC Securities was capitalized in May 2014, and once registered, will be a broker/dealer regulated by the SEC and FINRA. The Bank conducts business through its main office located in Pittsburgh, Pennsylvania, as well as its four additional representative offices in Cleveland, Ohio; Philadelphia, Pennsylvania; Edison, New Jersey; and New York, New York. Chartwell conducts business through its office located in Berwyn, Pennsylvania and CTSC Securities will conduct business through its office located in Pittsburgh, Pennsylvania. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States of America requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of related revenue and expense during the reporting period. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual conditions could be worse than those anticipated in the estimates, which could materially affect the financial results of our operations and financial condition. The material estimates that are particularly susceptible to significant changes relate to the determination of the allowance for loan losses, valuation of goodwill and other intangible assets and its evaluation 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 and CTSC Securities, after elimination of inter-company accounts and transactions. The accounts of the Bank, in turn, include its wholly-owned subsidiary, Meadowood Asset Management, LLC, after elimination of inter-company accounts and transactions. The unaudited consolidated financial statements of the Company presented herein have been prepared pursuant to rules of the Securities and Exchange Commission for quarterly reports on form 10-Q and do not include all of the information and note disclosures required by GAAP for a full year presentation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures, considered necessary for the fair presentation of the accompanying consolidated financial statements, have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2015 , included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 16, 2016 . 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 that 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 unrealized gains and losses 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 and the shareholders’ equity section of the consolidated statements of financial condition, on an after-tax basis. 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 June 30, 2016 and December 31, 2015 . Cash and stock dividends are reported as interest income, in the consolidated statements of income. 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 the original contractual 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 accrued and unpaid 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 when incurred. 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 June 30, 2016 and December 31, 2015 . 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 that 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 six months ended June 30, 2016 and 2015 , and there was no allowance for uncollectible accounts recorded as of June 30, 2016 and December 31, 2015 . 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, certain client relationships and non-compete agreements are amortized over their estimated useful lives and subject to periodic impairment testing. These finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from four to twenty-five 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 that 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 net of debt issuance costs, per ASU 2015-03. Interest expense is recognized based on the coupon rate of the obligations. Costs associated with the acquisition of subordinated notes payable are amortized to interest expense over the expected term of the borrowing. EARNINGS PER COMMON SHARE Basic earnings per common share (“EPS”) is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution of upon the exercise of stock options and vesting of restricted stock awards granted utilizing the treasury stock method. INCOME TAXES The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities with regard to a change in tax rates is recognized in income in the period that includes the enactment date. Management assesses all available evidence to determine the amount of deferred tax assets that are more-likely-than-not to be realized. The available evidence used in connection with the assessments includes taxable income in prior periods, projected taxable income, potential tax planning strategies and projected reversals of deferred tax items. These assessments involve a degree of subjectivity and may undergo significant change. Changes to the evidence used in the assessments could have a material adverse effect on the Company’s results of operations in the period in which they occur. It is the Company’s policy to recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense in the consolidated statements of income. DERIVATIVES AND HEDGING ACTIVITIES The Company accounts for derivative instruments and hedging activities in accordance with FASB ASC Topic 815, Derivatives and Hedging . All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities, and appropriate documentation is maintained to support the final determination. All derivatives are recognized as either assets or liabilities on the consolidated statements of financial condition and measured at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. For derivatives designated as cash flow hedges, changes in fair value of the effective portion of the cash flow hedges are reported in accumulated other comprehensive income. When the cash flows associated with the hedged item are realized, the gain or loss included in accumulated other comprehensive income is recognized in the consolidated statement of income. The Company also has interest derivative positions that are not designated as hedging instruments. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. 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 Topic 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 Topic 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 (losses) 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. Unrealized holding gains (losses) on the effective portion of the Company’s derivatives are included in accumulated other comprehensive income (loss), net of applicable income taxes, which will be reclassified to interest expense as interest payments are made on the Company’s debt. TREASURY STOCK The repurchase of the Company’s common stock is recorded at cost. At the time of reissuance, the treasury stock account is reduced using the average cost method. Gains and losses on the reissuance of common stock are recorded in additional paid-in capital, to the extent additional paid-in capital from any previous net gains on treasury share transactions exists. Any net deficiency is charged to retained earnings. RECENT ACCOUNTING DEVELOPMENTS In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “ Measurement of Credit Losses on Financial Instruments ,” which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life. The changes are effective for public business entities that are SEC filers, for annual and interim periods in fiscal years beginning after December 15, 2019. All entities may early adopt the standard for annual and interim periods in fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact this standard will have on our results of operations and financial position. In March 2016, the FASB issued ASU 2016-09, “ Improvements to Employee Share-Based Payment Accounting,” which is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic only); and (7) intrinsic value (nonpublic only). The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. Even if an entity early adopts the amendments after the first interim period, the adoption date is as of the beginning of the year for the issues adopted by the cumulative-effect and prospective methods. Any adjustments to previously reported interim periods of that fiscal year should be included in the year-to-date results. If those previously reported interim results appear in any future filings, they are reported on the revised basis. The Company is currently evaluating the impact this standard will have on our results of operations and financial position. In March 2016, the FASB issued ASU 2016-06, “ Contingent Put and Call Options in Debt Instruments,” which clarifies that determining whether the economic characteristics of a put or call are clearly and closely related to its debt host requires only an assessment of the four-step decision sequence outlined in FASB ASC paragraph 815-15-25-24. Additionally, entities are not required to separately assess whether the contingency itself is clearly and closely related. ASU 2016-06 is effective for public business entities for interim and annual periods in fiscal years beginning after December 15, 2016. Early adoption is permitted in any interim period for which the entity’s financial statements have not been issued but would be retroactively applied to the beginning of the year that includes that interim period. The Company is currently evaluating the impact this standard will have on our results of operations and financial position. In March 2016, the FASB issued ASU 2016-05, “ Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships,” which clarifies that a change in one of the parties to a derivative contract (through novation) that is part of a hedge ac |
Business Combinations (Notes)
Business Combinations (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | [2] BUSINESS COMBINATIONS On April 29, 2016, TriState Capital Holdings, Inc. through its wholly-owned subsidiary, Chartwell Investment Partners, LLC, completed the acquisition of substantially all of the assets of The Killen Group, Inc. (the "TKG acquisition"), an investment management firm with approximately $2.02 billion in assets under management. Under the terms of the Asset Purchase Agreement substantially all of the assets of The Killen Group, Inc. (“TKG”) were acquired for a purchase price consisting of $15.0 million paid in cash at closing based on five-times a base EBITDA (earnings before interest, taxes, depreciation and amortization) of $3.0 million plus an earnout. The earnout, while not limited under the terms of the Asset Purchase Agreement, will be calculated based on a multiple of seven-times the incremental growth in TKG's annual run-rate EBITDA over $3.0 million at December 31, 2016. The earnout is estimated to be approximately $3.7 million based on the estimated annual run-rate EBITDA of TKG at December 31, 2016. Any change to the earnout calculation above the estimated $3.7 million recorded at closing, will be recorded in the income statement in the period in which it is deemed probable to occur. 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 2.2 to the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 16, 2016, the terms of which Agreement are incorporated herein by reference. The following table summarizes total consideration paid, assets acquired and liabilities assumed for the TKG acquisition on April 29, 2016: (Dollars in thousands) TKG Acquisition Consideration paid: Cash $ 15,000 Estimated earnout 3,687 Fair value of total consideration $ 18,687 Fair value of assets acquired: Cash and cash equivalents $ 905 Investment management fees receivable 912 Office properties and equipment 20 Other assets 106 Total assets acquired 1,943 Fair value of liabilities assumed: Other liabilities 1,402 Total liabilities assumed 1,402 Fair value net identifiable assets acquired 541 Intangible assets acquired 13,585 Goodwill 4,561 Total net assets purchased $ 18,687 In connection with the TKG acquisition, total acquisition-related transaction costs incurred by TriState Capital were approximately $601,000 during 2015 and $1,000 during the six months ended June 30, 2016 , which were comprised primarily of legal, advisory and other costs. Since the acquisition, the TKG acquired operations contributed revenues of $1.8 million and earnings of $350,000 included in the consolidated statement of income for the three and six months ended June 30, 2016 . Goodwill is not amortized for book purposes, but is deductible for tax purposes. The following table shows the amount of other intangible assets acquired through the TKG acquisition on April 29, 2016, by class and estimated useful life. (Dollars in thousands) Gross Amount Estimated Trade name $ 2,850 300 Client Relationships: Sub-advisory client list 330 132 Separate managed accounts client list 715 168 Non-compete agreements 390 48 Total finite-lived intangibles $ 4,285 242 Client Relationships: Mutual fund client list 9,300 Indefinite life Total intangibles assets $ 13,585 The following table presents unaudited pro forma financial information which combines the historical consolidated statements of income of the Company and The Killen Group, Inc. to give effect to the acquisition as if it had occurred on January 1, 2015, for the periods indicated. Pro Forma Six Months Ended June 30, (Dollars in thousands) 2016 2015 Total revenue $ 60,628 $ 59,724 Net income $ 13,359 $ 11,163 Earnings per common share: Basic $ 0.48 $ 0.40 Diluted $ 0.47 $ 0.40 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 | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES Investment securities available-for-sale and held-to-maturity are comprised of the following: June 30, 2016 (Dollars in thousands) Amortized Gross Unrealized Gross Unrealized Estimated Investment securities available-for-sale: Corporate bonds $ 62,820 $ 652 $ 20 $ 63,452 Trust preferred securities 17,645 — 1,341 16,304 Non-agency mortgage-backed securities 5,750 — 4 5,746 Non-agency collateralized loan obligations 11,591 — 167 11,424 Agency collateralized mortgage obligations 47,130 54 322 46,862 Agency mortgage-backed securities 26,988 327 19 27,296 Agency debentures 4,739 — 89 4,650 Equity securities 8,497 — 420 8,077 Total investment securities available-for-sale 185,160 1,033 2,382 183,811 Investment securities held-to-maturity: Corporate bonds 19,446 507 53 19,900 Municipal bonds 25,328 703 — 26,031 Total investment securities held-to-maturity 44,774 1,210 53 45,931 Total $ 229,934 $ 2,243 $ 2,435 $ 229,742 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 The equity securities noted above consist of short-duration, corporate bond mutual funds. Income on investment securities included $1.0 million in taxable interest income, $118,000 in non-taxable interest income and $167,000 in dividend income for the three months ended June 30, 2016 , as compared to taxable interest income of $647,000 , non-taxable interest income of $98,000 and dividend income of $106,000 for the three months ended June 30, 2015 . Income on investment securities included $2.0 million in taxable interest income, $232,000 in non-taxable interest income and $337,000 in dividend income for the six months ended June 30, 2016 , as compared to taxable interest income of $1.3 million , non-taxable interest income of $188,000 and dividend income of $367,000 for the six months ended June 30, 2015 . As of June 30, 2016 , the contractual maturities of the debt securities are: June 30, 2016 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Estimated Amortized Estimated Due in one year or less $ 21,954 $ 21,978 $ — $ — Due from one to five years 42,138 42,740 13,569 14,119 Due from five to ten years 9,729 9,564 29,778 30,303 Due after ten years 102,842 101,452 1,427 1,509 Total debt securities $ 176,663 $ 175,734 $ 44,774 $ 45,931 Included in the $101.5 million fair value of debt securities available-for-sale with a contractual maturity due after ten years as of June 30, 2016 , were $89.3 million , or 88.0% , in floating-rate securities. Included in the $29.8 million amortized cost of debt securities held-to-maturity with a contractual maturity due from five to ten years as of June 30, 2016 , 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 three months ended June 30, 2016 and 2015 , were $2.4 million and $0 , respectively. Gross gains of $19,000 and $0 were realized on these sales and reclassified out of accumulated other comprehensive income (loss) during the three months ended June 30, 2016 and 2015 , respectively. There were $3,000 and $0 gross losses realized on these sales during the three months ended June 30, 2016 and 2015 , respectively. Proceeds from the sale of investment securities available-for-sale during the six months ended June 30, 2016 and 2015 , were $3.0 million and $9.7 million , respectively. Gross gains of $20,000 and $34,000 were realized on these sales and reclassified out of accumulated other comprehensive income (loss) during the six months ended June 30, 2016 and 2015 , respectively. There were $3,000 and $17,000 gross losses realized on these sales during the six months ended June 30, 2016 and 2015 , respectively. During the six months ended June 30, 2016 , there was an investment securities held-to-maturity of $2.5 million , which was called and gross gains of $46,000 was realized on this call and reclassified out of accumulated other comprehensive income (loss). Investment securities available-for-sale of $5.8 million , as of June 30, 2016 , 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, by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of June 30, 2016 and December 31, 2015 , respectively: June 30, 2016 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 $ — $ — $ 7,138 $ 20 $ 7,138 $ 20 Trust preferred securities 8,041 533 8,263 808 16,304 1,341 Non-agency mortgage-backed securities 5,746 4 — — 5,746 4 Non-agency collateralized loan obligations 1,554 44 9,870 123 11,424 167 Agency collateralized mortgage obligations 29,992 204 11,319 118 41,311 322 Agency mortgage-backed securities 1,693 19 — — 1,693 19 Agency debentures 4,650 89 — — 4,650 89 Equity securities — — 8,077 420 8,077 420 Total investment securities available-for-sale 51,676 893 44,667 1,489 96,343 2,382 Investment securities held-to-maturity: Corporate bonds 5,448 53 — — 5,448 53 Total investment securities held-to-maturity 5,448 53 — — 5,448 53 Total temporarily impaired securities $ 57,124 $ 946 $ 44,667 $ 1,489 $ 101,791 $ 2,435 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 The change in the fair values of our municipal bonds, agency collateralized mortgage obligation and agency mortgage-backed securities are primarily the result of interest rate fluctuations. To assess for impairment on municipal bonds, corporate bonds, single-issuer trust preferred securities, non-agency mortgage-backed securities, non-agency collateralized loan obligations and certain equity securities, management evaluates the underlying issuer’s financial performance and the related credit rating information through a review of publicly available financial statements and other publicly available information. This review did not identify any issues related to the ultimate repayment of principal and interest on these securities. In addition, the Company has the ability and intent to hold the securities in an unrealized loss position until recovery of their amortized cost. Based on this, the Company considers all of the unrealized losses to be temporary impairment losses. Within the available-for-sale portfolio, there were 28 positions, aggregating to $2.4 million in unrealized losses that were temporarily impaired as of June 30, 2016 , of which 10 positions were in an unrealized loss position for more than twelve months totaling $1.5 million . As of December 31, 2015 , there were 36 positions, aggregating to $2.4 million in unrealized losses that were temporarily impaired, of which 14 positions were in an unrealized loss position for more than twelve months totaling $1.5 million . Within the held-to-maturity portfolio, there were three positions, aggregating to $53,000 in unrealized losses that were temporarily impaired as of June 30, 2016 , of which no positions were in an unrealized loss position for more than twelve months. As of December 31, 2015 , there were six positions, aggregating to $85,000 in unrealized losses that were temporarily impaired, of which no positions were in an unrealized loss position for more than twelve months. There were no investment securities classified as trading securities outstanding as of June 30, 2016 and December 31, 2015 , respectively. There was no activity in investment securities classified as trading during the six months ended June 30, 2016 and 2015 . There was $13.6 million and $9.8 million in FHLB stock outstanding as of June 30, 2016 and December 31, 2015 , respectively. There were $3.8 million of net purchases in FHLB stock during the six months ended June 30, 2016 , and $1.3 million of net redemptions during the six months ended June 30, 2015 . |
Loans
Loans | 6 Months Ended |
Jun. 30, 2016 | |
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 were comprised of the following: June 30, 2016 (Dollars in thousands) Commercial Commercial Private Total Loans held-for-investment, before deferred fees $ 573,952 $ 990,740 $ 1,432,489 $ 2,997,181 Deferred loan (fees) costs (219 ) (2,709 ) 3,056 128 Loans held-for-investment, net of deferred fees 573,733 988,031 1,435,545 2,997,309 Allowance for loan losses (10,841 ) (4,872 ) (1,502 ) (17,215 ) Loans held-for-investment, net $ 562,892 $ 983,159 $ 1,434,043 $ 2,980,094 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 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 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 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 June 30, 2016 and December 31, 2015 , was $1.48 billion and $1.27 billion , 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 June 30, 2016 , were as follows: $1.16 billion in one year or less; $192.4 million in one to three years; and $134.1 million in greater than three years. The reserve for losses on unfunded commitments was $579,000 and $546,000 as of June 30, 2016 and December 31, 2015 , respectively, which includes reserves for probable losses on unfunded loan commitments, including standby letters of credit and also risk participations. Included in the unfunded commitment totals listed above, were loans in the process of origination totaling approximately $34.0 million and $31.1 million as of June 30, 2016 and December 31, 2015 , respectively, which extend over varying periods of time. 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 June 30, 2016 and December 31, 2015 , included in the total listed above, was $83.5 million and $89.9 million , respectively. Should the Company be obligated to perform under the standby letters of credit the Company will seek repayment from the customer for amounts paid. As of June 30, 2016 , $44.1 million 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 six months ended June 30, 2016 , there was one draw on a standby letter of credit totaling $100,000 , which was immediately repaid by the borrower. During the six months ended June 30, 2015 , there was one draw on a standby letters of credit totaling $100,000 , which was immediately repaid by the borrower. Most of these commitments are expected to expire without being drawn upon and the total amount does not necessarily represent future cash requirements. The probable liability for losses on standby letters of credit was included in the reserve for losses on unfunded commitments. The Company has entered into risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are a participant. The risk participation agreements provide credit protection to the financial institution counterparties should the customers fail to perform on their interest rate derivative contracts. The potential liability for outstanding obligations was included in the reserve for losses on unfunded commitments. |
Allowance for Loan Losses
Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2016 | |
Allowance for Loan Losses [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES Our allowance for loan losses represents our estimate of probable loan losses inherent in the loan portfolio at a specific point in time. This estimate includes losses associated with specifically identified loans, as well as estimated probable credit losses inherent in the remainder of the loan portfolio. Additions are made to the allowance through both periodic provisions charged to income and recoveries of losses previously incurred. Reductions to the allowance occur as loans are charged off or when the credit history of any of the three loan portfolios improves . Management evaluates the adequacy of the allowance quarterly, and in doing so relies on various factors including, but not limited to, assessment of historical loss experience, delinquency and non-accrual trends, portfolio growth, underlying collateral coverage and current economic conditions. This evaluation is subjective and requires material estimates that may change over time. In addition, management evaluates the overall methodology for the allowance for loan losses on an annual basis. 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 at times does 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 that 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, global cash flows and liquidity from the developer, or the sale of the property 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, 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 are typically secured by cash and marketable securities. Some loans are secured by residential real estate or other financial assets. The portfolio also has lines of credit and unsecured loans. 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 89.5% and 87.8% of total private banking loans as of June 30, 2016 and December 31, 2015 , 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 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: 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: June 30, 2016 (Dollars in thousands) Commercial Commercial Private Total Pass $ 520,589 $ 985,119 $ 1,434,954 $ 2,940,662 Special mention 24,465 — — 24,465 Substandard 28,679 2,912 591 32,182 Loans held-for-investment $ 573,733 $ 988,031 $ 1,435,545 $ 2,997,309 December 31, 2015 (Dollars in thousands) Commercial Commercial Private Total Pass $ 585,561 $ 858,396 $ 1,342,813 $ 2,786,770 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 Changes in the allowance for loan losses were as follows for the three months ended June 30, 2016 and 2015 : Three Months Ended June 30, 2016 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 11,464 $ 5,666 $ 1,416 $ 18,546 Provision (credit) for loan losses 788 (794 ) 86 80 Charge-offs (1,543 ) — — (1,543 ) Recoveries 132 — — 132 Balance, end of period $ 10,841 $ 4,872 $ 1,502 $ 17,215 Three Months Ended June 30, 2015 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 14,191 $ 4,973 $ 2,041 $ 21,205 Provision (credit) for loan losses 426 (224 ) (17 ) 185 Charge-offs — — — — Recoveries 4 — 13 17 Balance, end of period $ 14,621 $ 4,749 $ 2,037 $ 21,407 There was a charge-off of $1.5 million on one C&I loan and $132,000 of recoveries on four C&I loans for the three months ended June 30, 2016 . There were no charge-offs and $17,000 of recoveries on two C&I loans and one private banking loan for the three months ended June 30, 2015 . Changes in the allowance for loan losses were as follows for the six months ended June 30, 2016 and 2015 : Six Months Ended June 30, 2016 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 11,064 $ 5,344 $ 1,566 $ 17,974 Provision (credit) for loan losses 738 (472 ) (64 ) 202 Charge-offs (1,543 ) — — (1,543 ) Recoveries 582 — — 582 Balance, end of period $ 10,841 $ 4,872 $ 1,502 $ 17,215 Six Months Ended June 30, 2015 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 13,501 $ 4,755 $ 2,017 $ 20,273 Provision for loan losses 1,109 (6 ) 7 1,110 Charge-offs — — — — Recoveries 11 — 13 24 Balance, end of period $ 14,621 $ 4,749 $ 2,037 $ 21,407 There was a charge-off of $1.5 million on one C&I loan and $582,000 of recoveries on six C&I loans for the six months ended June 30, 2016 . There were no charge-offs and $24,000 of recoveries on three C&I loans and one private banking loan for the six months ended June 30, 2015 . The following tables present the age analysis of past due loans segregated by class of loan: June 30, 2016 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Total Commercial and industrial $ — $ — $ — $ — $ 573,733 $ 573,733 Commercial real estate — — 2,912 2,912 985,119 988,031 Private banking — — 224 224 1,435,321 1,435,545 Loans held-for-investment $ — $ — $ 3,136 $ 3,136 $ 2,994,173 $ 2,997,309 December 31, 2015 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Total Commercial and industrial $ — $ — $ 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 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 Six Months Ended June 30, 2016 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial and industrial $ 10,397 $ 10,703 $ 3,650 $ 8,262 $ — Commercial real estate — — — — — Private banking 580 710 580 641 — Total with a related allowance recorded 10,977 11,413 4,230 8,903 — Without a related allowance recorded: Commercial and industrial 5,733 11,202 — 7,118 13 Commercial real estate 2,912 9,067 — 2,912 — Private banking — — — — — Total without a related allowance recorded 8,645 20,269 — 10,030 13 Total: Commercial and industrial 16,130 21,905 3,650 15,380 13 Commercial real estate 2,912 9,067 — 2,912 — Private banking 580 710 580 641 — Total $ 19,622 $ 31,682 $ 4,230 $ 18,933 $ 13 As of and for the Twelve Months 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 Impaired loans as of June 30, 2016 and December 31, 2015 , were $19.6 million and $17.2 million , respectively. There was no interest income recognized on these loans, while on non-accrual status, for the six months ended June 30, 2016 , and the twelve months ended December 31, 2015 . As of June 30, 2016 and December 31, 2015 , 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 June 30, 2016 , there were specific reserves totaling $4.2 million , which were included in the $17.2 million allowance for loan losses. Also included in impaired loans were two C&I loans and one CRE loan with a combined balance of $8.6 million as of June 30, 2016 , with no corresponding specific reserve since these loans had a net realizable value that management believes will be recovered from the borrower. 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 loans 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 that management believes will be recovered from the borrower. The following tables present the allowance for loan losses and recorded investment in loans by class: June 30, 2016 (Dollars in thousands) Commercial Commercial Private Total Allowance for loan losses: Individually evaluated for impairment $ 3,650 $ — $ 580 $ 4,230 Collectively evaluated for impairment 7,191 4,872 922 12,985 Total allowance for loan losses $ 10,841 $ 4,872 $ 1,502 $ 17,215 Loans held-for-investment: Individually evaluated for impairment $ 16,130 $ 2,912 $ 580 $ 19,622 Collectively evaluated for impairment 557,603 985,119 1,434,965 2,977,687 Loans held-for-investment $ 573,733 $ 988,031 $ 1,435,545 $ 2,997,309 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 Troubled Debt Restructuring The following table provides additional information on the Company’s loans designated as troubled debt restructurings: (Dollars in thousands) June 30, December 31, Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring: Performing loans accruing interest $ 474 $ 510 Non-accrual loans 8,923 12,894 Total troubled debt restructurings $ 9,397 $ 13,404 Of the non-accrual loans as of June 30, 2016 , two C&I 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 June 30, 2016 . The aggregate recorded investment of these loans was $9.4 million . There were unused commitments of $39,000 as of June 30, 2016 , which was related to the performing TDR. 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 the performing TDR. The modifications made to restructured loans typically consist of an extension or reduction of the payment terms, or the deferral of principal payments. There were no loans modified as a TDR within twelve months of the corresponding balance sheet date with a payment default during the six months ended June 30, 2016 . There were two loans for $5.6 million that were modified as a TDR within twelve months of the corresponding balance sheet date with a payment default during the six months ended June 30, 2015 , that were already on non-accrual status and fully secured or adequately reserved as of June 30, 2015 . There were no modifications made to loans designated as TDRs during the three and six months ended June 30, 2016 . The financial effects of modifications made to loans designated as TDRs during three months ended June 30, 2015 , were as follows: Three Months Ended June 30, 2015 (Dollars in thousands) Count Recorded Investment at the time of Modification Current Recorded Investment Allowance for Loan Losses at the time of Modification Current Allowance for Loan Losses Commercial and industrial: Change in interest terms 1 $ 4,064 $ 4,021 $ 400 $ — Total 1 $ 4,064 $ 4,021 $ 400 $ — The financial effects of modifications made to loans designated as TDRs during six months ended June 30, 2015 , were as follows: Six Months Ended June 30, 2015 (Dollars in thousands) Count Recorded Investment at the time of Modification Current Recorded Investment Allowance for Loan Losses at the time of Modification Current Allowance for Loan Losses Commercial and industrial: Change in interest terms 1 $ 4,064 $ 4,021 $ 400 $ — Extended term and deferred principal 1 433 — 433 — Deferred principal 2 6,849 4,495 1,500 3,353 Total 4 $ 11,346 $ 8,516 $ 2,333 $ 3,353 Other Real Estate Owned As of June 30, 2016 and December 31, 2015 , the balance of the other real estate owned portfolio was $1.7 million and $1.7 million , respectively. There were no residential mortgage loans in the process of foreclosure as of June 30, 2016 . |
Goodwill and Other Intangibles
Goodwill and Other Intangibles Assets (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | [6] GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill of $4.6 million and other intangible assets of $13.6 million were recorded during the six months ended June 30, 2016 , related to the TKG acquisition. The following table presents the change in goodwill for the six months ended June 30, 2016 and 2015 : Six Months Ended June 30, (Dollars in thousands) 2016 2015 Balance, beginning of period $ 34,163 $ 34,163 Additions 4,561 — Balance, end of period $ 38,724 $ 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 six months ended June 30, 2016 and 2015 : Six Months Ended June 30, (Dollars in thousands) 2016 2015 Balance, beginning of period $ 16,653 $ 18,211 Additions 13,585 — Amortization (828 ) (779 ) Balance, end of period $ 29,410 $ 17,432 The following table presents the gross amount of intangible assets and total accumulated amortization by class: June 30, 2016 December 31, 2015 (Dollars in thousands) Gross Amount Accumulated Amortization Net Carrying Amount Gross Amount Accumulated Amortization Net Carrying Amount Trade name $ 4,040 $ (158 ) $ 3,882 $ 1,190 $ (109 ) $ 1,081 Client Relationships: Sub-advisory client list 11,530 (1,941 ) 9,589 11,200 (1,521 ) 9,679 Separate managed accounts client list 1,810 (264 ) 1,546 1,095 (201 ) 894 Other institutional client list 5,950 (1,262 ) 4,688 5,950 (992 ) 4,958 Non-compete agreements 465 (60 ) 405 75 (34 ) 41 Total finite-lived intangibles $ 23,795 $ (3,685 ) $ 20,110 $ 19,510 $ (2,857 ) $ 16,653 Client Relationships: Mutual fund client list (indefinite-lived) 9,300 — 9,300 — — — Total intangibles assets $ 33,095 $ (3,685 ) $ 29,410 $ 19,510 $ (2,857 ) $ 16,653 Amortization expense on finite-lived intangible assets totaled $438,000 and $390,000 for the three months ended June 30, 2016 , and 2015 . Amortization expense on finite-lived intangible assets totaled $828,000 and $779,000 for the six months ended June 30, 2016 , and 2015 . The following is a summary of the expected amortization expense for finite-lived intangibles assets, assuming no future additions, for each of the five years following June 30, 2016 : (Dollars in thousands) Amount June 30, 2017 $ 1,851 2018 1,845 2019 1,832 2020 1,816 2021 1,734 Thereafter 11,032 Total finite-lived intangibles $ 20,110 Indefinite-lived intangibles 9,300 Total intangibles assets $ 29,410 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2016 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS Interest Rate Weighted Average Balance as of (Dollars in thousands) June 30, June 30, December 31, June 30, December 31, Demand and savings accounts: Noninterest-bearing checking accounts — — — $ 160,538 $ 159,859 Interest-bearing checking accounts 0.05 to 0.60% 0.49 % 0.42 % 181,318 136,037 Money market deposit accounts 0.05 to 1.50% 0.70 % 0.50 % 1,657,272 1,464,279 Total demand and savings accounts 1,999,128 1,760,175 Time deposits 0.05 to 1.44% 0.87 % 0.78 % 889,064 929,669 Total deposit balance $ 2,888,192 $ 2,689,844 Average rate paid on interest-bearing accounts 0.74 % 0.60 % As of June 30, 2016 and December 31, 2015 , the Bank had total brokered deposits of $1.06 billion and $1.05 billion , respectively. The amount for brokered deposits includes reciprocal Certificate of Deposit Account Registry Service ® (“CDARS ® ”) and reciprocal Insured Cash Sweep ® (“ICS ® ”) accounts totaling $470.0 million and $496.5 million as of June 30, 2016 and December 31, 2015 , respectively. As of June 30, 2016 and December 31, 2015 , time deposits with balances of $100,000 or more, excluding brokered time deposit, amounted to $373.9 million and $409.2 million , respectively. Time deposits with balances of $250,000 or more, excluding brokered time deposit, amounted to $150.8 million and $142.7 million as of June 30, 2016 and December 31, 2015 , respectively. The contractual maturity of time deposits, including brokered deposits, is as follows: (Dollars in thousands) June 30, December 31, 12 months or less $ 708,279 $ 645,004 12 months to 24 months 156,101 219,333 24 months to 36 months 24,684 65,332 36 months to 48 months — — 48 months to 60 months — — Over 60 months — — Total $ 889,064 $ 929,669 Interest expense on deposits is as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2016 2015 2016 2015 Interest-bearing checking accounts $ 154 $ 99 $ 307 $ 219 Money market deposit accounts 2,622 1,336 4,829 2,556 Time deposits 1,827 1,741 3,605 3,293 Total interest expense on deposits $ 4,603 $ 3,176 $ 8,741 $ 6,068 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS As of June 30, 2016 and December 31, 2015 , borrowings were comprised of the following: June 30, 2016 December 31, 2015 (Dollars in thousands) Interest Rate Ending Balance Maturity Date Interest Rate Ending Balance Maturity Date FHLB borrowings: Issued 6/30/2016 0.51 % $ 75,000 7/1/2016 $ — Issued 6/29/2016 0.66 % 100,000 9/29/2016 — Issued 12/31/2015 — 0.51 % 170,000 1/4/2016 Issued 7/29/2015 0.61 % 25,000 8/4/2016 0.61 % 25,000 8/4/2016 Issued 7/29/2015 0.72 % 25,000 11/3/2016 0.72 % 25,000 11/3/2016 Subordinated notes payable (net of debt issuance costs of $591 and $692) 5.75 % 34,409 7/1/2019 5.75 % 34,308 7/1/2019 Total borrowings, net $ 259,409 $ 254,308 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 June 30, 2016 , the Bank’s borrowing capacity is based on the information provided in the March 31, 2016 , QCR filing. As of June 30, 2016 , the Bank had securities held in safekeeping at the FHLB with a fair value of $5.8 million , combined with pledged loans of $774.0 million , for a borrowing capacity of $554.8 million , of which $225.0 million was outstanding in advances, as reflected in the table above. As of December 31, 2015 , there was $220.0 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 June 30, 2016 , 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 June 30, 2016 , the full amount of this established line was available. 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. |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2016 | |
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 to average assets (as defined). As of June 30, 2016 and March 31, 2016 , TriState Capital Holdings, Inc. and TriState Capital Bank exceeded all capital adequacy requirements to which they are subject. Financial depository institutions are categorized as well capitalized if they meet minimum Total risk-based, Tier 1 risk-based, CET 1 risk-based capital ratios and Tier 1 leverage ratio (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. Basel III, which began phasing in on January 1, 2015, has replaced 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 following tables set forth certain information concerning the Company’s and the Bank’s regulatory capital as of June 30, 2016 and December 31, 2015 : June 30, 2016 Actual For Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total risk-based capital ratio Company $ 321,170 12.76 % $ 201,322 8.00 % N/A N/A Bank $ 304,080 12.24 % $ 198,774 8.00 % $ 248,468 10.00 % Tier 1 risk-based capital ratio Company $ 283,157 11.25 % $ 150,992 6.00 % N/A N/A Bank $ 286,628 11.54 % $ 149,081 6.00 % $ 198,774 8.00 % Common equity tier 1 risk-based capital ratio Company $ 283,157 11.25 % $ 113,244 4.50 % N/A N/A Bank $ 286,628 11.54 % $ 111,810 4.50 % $ 161,504 6.50 % Tier 1 leverage ratio Company $ 283,157 8.41 % $ 134,737 4.00 % N/A N/A Bank $ 286,628 8.57 % $ 133,752 4.00 % $ 167,190 5.00 % 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 % In addition, the final rules subject a banking organization to certain limitations on capital distributions and discretionary bonus payments to executive officers if the organization does not maintain a capital conservation buffer of risk-based capital ratios in an amount greater than 2.5% of its total risk-weighted assets. The implementation of the capital conservation buffer began on January 1, 2016, at 0.625% and will be phased in over a four -year period (increasing by that amount ratably on each subsequent January 1, until it reaches 2.5% on January 1, 2019). The Company has not paid dividends to its holders of its common shares since its inception in 2007. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
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 six months ended June 30, 2016 and 2015 , the Company automatically contributed three percent of the employee’s base salary to the individual’s 401(k) plan, subject to IRS limitations. Full-time employees and certain part-time employees are eligible to participate upon the first month following their first day of employment or having attained the age of 21 , whichever is later. The Company’s contribution expense was $206,000 and $166,000 for the three months ended June 30, 2016 and 2015 , respectively, including incidental administrative fees paid to a third party administrator of the plan. The Company’s contribution expense was $402,000 and $353,000 for the six months ended June 30, 2016 and 2015 , respectively, including incidental administrative fees paid to a third party administrator of the plan. On February 28, 2013, the Company entered into a supplemental executive retirement plan (“SERP”) for the Chairman and Chief Executive Officer. The benefits will be earned over a five -year period with the projected payments for this SERP of $25,000 per month for 180 months commencing the later of retirement or 60 months. For the three and six months ended June 30, 2016 , the Company recorded expense related to SERP of $232,000 and $454,000 , utilizing a discount rate of 2.15% . For the three and six months ended June 30, 2015 , the Company recorded expense related to SERP of $199,000 and $391,000 , utilizing a discount rate of 2.98% . The recorded liability related to the SERP plan was $2.5 million and $2.1 million as of June 30, 2016 and December 31, 2015 , respectively. |
Stock Transactions
Stock Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
STOCK TRANSACTIONS | STOCK TRANSACTIONS In October 2014, the Board of Directors authorized the repurchase of up to $10 million , or up to 1,000,000 shares, of the Company’s common stock through December 31, 2015. Under this plan, the Company repurchased the total of 1,000,000 shares for approximately $9.9 million at an average cost of $9.90 per share and are held as treasury stock. In January 2016, the Board of Directors authorized another repurchase of up to $10 million , or up to 1,000,000 shares, of the Company’s common stock. During the six months ended June 30, 2016 , the Company repurchased a total of 257,722 shares for approximately $3.2 million , at an average cost of $12.33 per share. The tables below show the changes in the Company’s common shares outstanding during the periods indicated. Number of Balance, December 31, 2014 28,060,888 Issuance of restricted common stock 255,916 Forfeitures of restricted common stock — Exercise of stock options 5,000 Purchase of treasury stock (321,109 ) Balance, June 30, 2015 28,000,695 Balance, December 31, 2015 28,056,195 Issuance of restricted common stock 394,309 Forfeitures of restricted common stock (4,000 ) Exercise of stock options 22,500 Purchase of treasury stock (257,722 ) Balance, June 30, 2016 28,211,282 |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The computation of basic and diluted earnings per common share for the periods presented is as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 2016 2015 2016 2015 Net income available to common shareholders $ 6,773 $ 5,728 $ 12,616 $ 10,784 Weighted average common shares outstanding: Basic 27,549,475 27,718,226 27,601,331 27,804,599 Non-vested restricted stock - dilutive 180,317 48,933 147,823 26,780 Stock options - dilutive 495,612 416,889 472,728 345,131 Diluted 28,225,404 28,184,048 28,221,882 28,176,510 Earnings per common share: Basic $ 0.25 $ 0.21 $ 0.46 $ 0.39 Diluted $ 0.24 $ 0.20 $ 0.45 $ 0.38 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Anti-dilutive shares (1) 421,661 707,893 627,893 973,393 (1) Included stock options and non-vested restricted stock not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive. |
Derivatives and Hedging Activit
Derivatives and Hedging Activity | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE AND HEDGING ACTIVITY | DERIVATIVES AND HEDGING ACTIVITY RISK MANAGEMENT OBJECTIVE OF USING DERIVATIVES The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts related to certain of the Company’s fixed-rate loan assets and differences in the amount, timing, and duration of the Company's known or expected cash payments related to certain of the Company's FHLB borrowings. 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 June 30, 2016 and December 31, 2015 : Asset Derivatives Liability Derivatives as of June 30, 2016 as of June 30, 2016 (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 $ 221 Derivatives not designated as hedging instruments: Interest rate products Other assets $ 21,292 Other liabilities $ 22,881 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 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 June 30, 2016 , the Company had four interest rate swaps, with an aggregate notional amount of $3.0 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 six months ended June 30, 2016 and 2015 . There were no counterparty default losses on derivatives for the six months ended June 30, 2016 and 2015 . For the four derivatives that were designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in earnings by applying the “fair value long haul” method. The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related derivatives. During the three months ended June 30, 2016 , the Company recognized a net gain of $1,000 in non-interest income related to hedge ineffectiveness as compared to a net gain of $2,000 during the three months ended June 30, 2015 . The Company also recognized a decrease to interest income of $23,000 and $76,000 for the three months ended June 30, 2016 and 2015 , respectively, related to the Company’s fair value hedges, which includes net settlements on the derivatives, and any amortization adjustment of the basis in the hedged items. During the six months ended June 30, 2016 , the Company recognized a net gain of $2,000 in non-interest income related to hedge ineffectiveness as compared to a net gain of $2,000 during the six months ended June 30, 2015 . The Company also recognized a decrease to interest income of $47,000 and $158,000 for the six months ended June 30, 2016 and 2015 , respectively, related to the Company’s fair value hedges, which includes net settlements on the derivatives, and any amortization adjustment of the basis in the hedged items. CASH FLOW HEDGES OF INTEREST RATE RISK The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. In June 2016, the Company entered into two derivative contracts to hedge the variable cash flows associated with certain FHLB borrowings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company’s derivatives did not have any hedge ineffectiveness recognized in earnings during the three months ended June 30, 2016 . Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s debt. During the next twelve months, the Company estimates $87,000 to be reclassified to earnings as an increase to interest expense. The Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of 36 months. As of June 30, 2016 , the Company had two outstanding interest rate derivatives with an aggregate notional amount of $100.0 million that was designated as a cash flow hedge of interest rate risk. During the three months ended June 30, 2016 , a net loss of $87,000 was recognized in accumulated other comprehensive income (loss) on the effective portion of the derivative. 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 June 30, 2016 , the Company had 194 derivative transactions with an aggregate notional amount of $784.1 million related to this program. During the three months ended June 30, 2016 and 2015 , the Company recognized a net loss of $385,000 and a net gain of $261,000 , respectively, related to changes in fair value of the derivatives not designated in hedging relationships. During the six months ended June 30, 2016 and 2015 , the Company recognized a net loss of $840,000 and a net gain $44,000 , respectively, related to changes in fair value of the derivatives not designated in hedging relationships. EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENTS OF INCOME The tables below present the effect of the Company’s derivative financial instruments in the consolidated statements of income for the periods presented: Three Months Ended June 30, (Dollars in thousands) 2016 2015 Derivatives designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Interest income $ (23 ) $ (76 ) Non-interest income 1 2 Total $ (22 ) $ (74 ) Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Non-interest income $ (385 ) $ 261 Total $ (385 ) $ 261 Six Months Ended June 30, (Dollars in thousands) 2016 2015 Derivatives designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Interest income $ (47 ) $ (158 ) Non-interest income 2 2 Total $ (45 ) $ (156 ) Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Non-interest income $ (840 ) $ 44 Total $ (840 ) $ 44 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 June 30, 2016 , the termination value of derivatives, including accrued interest, in a net liability position related to these agreements was $23.2 million . As of June 30, 2016 , the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $23.2 million . If the Company had breached any of these provisions as of June 30, 2016 , 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 | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 : June 30, 2016 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets / Financial assets: Investment securities available-for-sale: Corporate bonds $ — $ 63,452 $ — $ 63,452 Trust preferred securities — 16,304 — 16,304 Non-agency mortgage-backed securities — 5,746 — 5,746 Non-agency collateralized loan obligations — 11,424 — 11,424 Agency collateralized mortgage obligations — 46,862 — 46,862 Agency mortgage-backed securities — 27,296 — 27,296 Agency debentures — 4,650 — 4,650 Equity securities 8,077 — — 8,077 Interest rate swaps — 21,292 — 21,292 Total financial assets 8,077 197,026 — 205,103 Financial liabilities: Interest rate swaps — 23,102 — 23,102 Total financial liabilities $ — $ 23,102 $ — $ 23,102 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 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 June 30, 2016 and December 31, 2015 : June 30, 2016 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Loans measured for impairment, net $ — $ — $ 12,005 $ 12,005 Other real estate owned — — 1,730 1,730 Total assets $ — $ — $ 13,735 $ 13,735 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 As of June 30, 2016 , the Company recorded $4.2 million of specific reserves to the allowance for loan losses as a result of adjusting the fair value of impaired loans. As of December 31, 2015 , the Company recorded $4.5 million of specific reserves to allowance for loan losses as a result of adjusting the fair value of impaired loans. IMPAIRED LOANS A loan is considered impaired when management determines it is probable that all of the principal and interest due under the original terms of the loan may not be collected or if a loan is designated as a TDR. Impairment is measured based on a discounted cash flows method or the fair value of the underlying collateral less estimated selling costs. Our policy is to obtain appraisals on collateral supporting impaired loans on an annual basis, unless circumstances dictate a shorter time frame. Appraisals are reduced by estimated costs to sell the collateral, and, under certain circumstances, additional factors that may arise and 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 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 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 June 30, 2016 and December 31, 2015 : June 30, 2016 (Dollars in thousands) Fair Value Valuation Techniques (1) Significant Unobservable Inputs Weighted Average Loans measured for impairment, net $ 12,005 Discounted cash flow Discount due to restructured nature of operations 7 % Other real estate owned $ 1,730 Appraisal value Discount due 10 % (1) Fair value is generally determined through independent appraisals of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent. December 31, 2015 (Dollars in thousands) Fair Value Valuation Techniques (1) Significant Unobservable Inputs Weighted Average 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 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. FAIR VALUE OF FINANCIAL INSTRUMENTS A summary of the carrying amounts and estimated fair values of financial instruments is as follows: June 30, 2016 December 31, 2015 (Dollars in thousands) Fair Value Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents 1 $ 114,297 $ 114,297 $ 96,676 $ 96,676 Investment securities available-for-sale: debt 2 175,734 175,734 160,560 160,560 Investment securities available-for-sale: equity 1 8,077 8,077 7,759 7,759 Investment securities held-to-maturity 2 44,774 45,931 47,290 48,099 Federal Home Loan Bank stock 2 13,632 13,632 9,802 9,802 Loans held-for-investment, net 3 2,980,094 2,980,674 2,823,310 2,813,278 Accrued interest receivable 2 7,774 7,774 7,056 7,056 Investment management fees receivable 2 7,674 7,674 6,191 6,191 Bank owned life insurance 2 60,905 60,905 60,019 60,019 Interest rate swaps 2 21,292 21,292 8,662 8,662 Other real estate owned 3 1,730 1,730 1,730 1,730 Financial liabilities: Deposits 2 $ 2,888,192 $ 2,889,349 $ 2,689,844 $ 2,690,693 Borrowings, net 2 259,409 260,353 254,308 255,179 Accrued acquisition earnout liability 3 3,687 3,687 — — Interest rate swaps 2 23,102 23,102 9,592 9,592 During the six months ended June 30, 2016 and 2015 , 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 June 30, 2016 and December 31, 2015 : 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 . FEDERAL HOME LOAN BANK STOCK The carrying value of our FHLB stock, which is a marketable equity investment, approximates fair value. LOANS HELD-FOR-INVESTMENT The fair value of loans held-for-investment 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. BANK OWNED LIFE INSURANCE The fair value of the general account bank owned life insurance is based on the insurance contract net cash surrender value. OTHER REAL ESTATE OWNED Real estate owned is recorded on the date acquired at the lower of the related loan balance or fair value, less estimated disposition costs, with the fair value being determined by appraisal. DEPOSITS The fair value of demand deposits is the amount payable on demand as of the reporting date, i.e., their carrying amounts. The fair value of fixed maturity certificates of deposit is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. BORROWINGS The fair value of our borrowings is calculated by discounting scheduled cash flows through the estimated maturity using period end market rates for borrowings of similar remaining maturities. ACQUISITION EARNOUT LIABILITY The fair value of the TKG acquisition earnout liability is estimated through the assistance of an independent third party. For additional information on the calculation of the earnout, refer to Note 2, Business Combinations . 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) | 6 Months Ended |
Jun. 30, 2016 | |
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: Three Months Ended June 30, 2016 2015 (Dollars in thousands) Investment Securities Derivatives Accumulated Other Comprehensive Income (Loss) Investment Securities Derivatives Accumulated Other Comprehensive Income (Loss) Balance, beginning of period $ (2,094 ) $ — $ (2,094 ) $ (345 ) $ — $ (345 ) Change in unrealized holding gains (losses) 1,114 (56 ) 1,058 130 — 130 Gains reclassified from other comprehensive income (1) (40 ) — (40 ) — — — Net other comprehensive income (loss) 1,074 (56 ) 1,018 130 — 130 Balance, end of period $ (1,020 ) $ (56 ) $ (1,076 ) $ (215 ) $ — $ (215 ) (1) Consists of net realized gain on sale and call of investment securities of $62,000 and $0 , net of income tax expense of $22,000 and $0 for the three months ended June 30, 2016 and 2015 , respectively. Six Months Ended June 30, 2016 2015 (Dollars in thousands) Investment Securities Derivatives Accumulated Other Comprehensive Income (Loss) Investment Securities Derivatives Accumulated Other Comprehensive Income (Loss) Balance, beginning of period $ (1,443 ) $ — $ (1,443 ) $ (627 ) $ — $ (627 ) Change in unrealized holding gains (losses) 464 (56 ) 408 423 — 423 Gains reclassified from other comprehensive income (1) (41 ) — (41 ) (11 ) — (11 ) Net other comprehensive income (loss) 423 (56 ) 367 412 — 412 Balance, end of period $ (1,020 ) $ (56 ) $ (1,076 ) $ (215 ) $ — $ (215 ) (1) Consists of net realized gain on sale and call of investment securities of $63,000 and $17,000 , net of income tax expense of $22,000 and $6,000 for the six months ended June 30, 2016 and 2015 , respectively. |
Contingent Liabilities
Contingent Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES | CONTINGENT LIABILITIES The Company is not subject to any asserted claims nor is it aware of any unasserted claims. In the opinion of management, there are no potential claims that would have a material adverse effect on the Company’s financial position, liquidity or results of operations. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENTS | SEGMENTS 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 that are necessary for purposes of reconciliation to the consolidated amounts. (Dollars in thousands) June 30, December 31, Assets: (unaudited) Bank $ 3,441,794 $ 3,236,756 Investment management 82,659 65,516 Parent and other 4,138 (101 ) Total assets $ 3,528,591 $ 3,302,171 Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 (Dollars in thousands) Bank Investment Parent Consolidated Bank Investment Parent Consolidated Income statement data: (unaudited) (unaudited) Interest income $ 23,730 $ — $ 65 $ 23,795 $ 20,429 $ — $ 52 $ 20,481 Interest expense 5,025 — 551 5,576 3,259 — 549 3,808 Net interest income (loss) 18,705 — (486 ) 18,219 17,170 — (497 ) 16,673 Provision for loan losses 80 — — 80 185 — — 185 Net interest income (loss) after provision for loan losses 18,625 — (486 ) 18,139 16,985 — (497 ) 16,488 Non-interest income: Investment management fees — 9,517 (55 ) 9,462 — 7,556 (42 ) 7,514 Net gain on the sale and call of investment securities 62 — — 62 — — — — Other non-interest income 1,922 1 — 1,923 2,062 — — 2,062 Total non-interest income 1,984 9,518 (55 ) 11,447 2,062 7,556 (42 ) 9,576 Non-interest expense: Intangible amortization expense — 438 — 438 — 390 — 390 Other non-interest expense 12,299 6,683 37 19,019 11,690 5,497 5 17,192 Total non-interest expense 12,299 7,121 37 19,457 11,690 5,887 5 17,582 Income (loss) before tax 8,310 2,397 (578 ) 10,129 7,357 1,669 (544 ) 8,482 Income tax expense (benefit) 2,662 917 (223 ) 3,356 2,291 633 (170 ) 2,754 Net income (loss) $ 5,648 $ 1,480 $ (355 ) $ 6,773 $ 5,066 $ 1,036 $ (374 ) $ 5,728 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 (Dollars in thousands) Bank Investment Parent Consolidated Bank Investment Parent Consolidated Income statement data: (unaudited) (unaudited) Interest income $ 47,017 $ — $ 138 $ 47,155 $ 40,577 $ — $ 106 $ 40,683 Interest expense 9,457 — 1,102 10,559 6,259 — 1,088 7,347 Net interest income (loss) 37,560 — (964 ) 36,596 34,318 — (982 ) 33,336 Provision for loan losses 202 — — 202 1,110 — — 1,110 Net interest income (loss) after provision for loan losses 37,358 — (964 ) 36,394 33,208 — (982 ) 32,226 Non-interest income: Investment management fees — 16,590 (109 ) 16,481 — 15,258 (89 ) 15,169 Net gain on the sale and call of investment securities 63 — — 63 17 — — 17 Other non-interest income 3,817 1 — 3,818 3,240 1 — 3,241 Total non-interest income 3,880 16,591 (109 ) 20,362 3,257 15,259 (89 ) 18,427 Non-interest expense: Intangible amortization expense — 828 — 828 — 779 — 779 Other non-interest expense 24,623 11,977 35 36,635 22,943 10,995 (33 ) 33,905 Total non-interest expense 24,623 12,805 35 37,463 22,943 11,774 (33 ) 34,684 Income (loss) before tax 16,615 3,786 (1,108 ) 19,293 13,522 3,485 (1,038 ) 15,969 Income tax expense (benefit) 5,653 1,448 (424 ) 6,677 4,188 1,321 (324 ) 5,185 Net income (loss) $ 10,962 $ 2,338 $ (684 ) $ 12,616 $ 9,334 $ 2,164 $ (714 ) $ 10,784 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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, valuation of goodwill and other intangible assets and its evaluation 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 and CTSC Securities, after elimination of inter-company accounts and transactions. The accounts of the Bank, in turn, include its wholly-owned subsidiary, Meadowood Asset Management, LLC, after elimination of inter-company accounts and transactions. The unaudited consolidated financial statements of the Company presented herein have been prepared pursuant to rules of the Securities and Exchange Commission for quarterly reports on form 10-Q and do not include all of the information and note disclosures required by GAAP for a full year presentation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures, considered necessary for the fair presentation of the accompanying consolidated financial statements, have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2015 , included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 16, 2016 . |
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 that 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 unrealized gains and losses 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 and the shareholders’ equity section of the consolidated statements of financial condition, on an after-tax basis. |
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 June 30, 2016 and December 31, 2015 . Cash and stock dividends are reported as interest income, in the consolidated statements of income. |
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 the original contractual 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 accrued and unpaid 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 when incurred. 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 June 30, 2016 and December 31, 2015 . 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 that 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 six months ended June 30, 2016 and 2015 , and there was no allowance for uncollectible accounts recorded as of June 30, 2016 and December 31, 2015 . |
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, certain client relationships and non-compete agreements are amortized over their estimated useful lives and subject to periodic impairment testing. These finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from four to twenty-five 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 that 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 net of debt issuance costs, per ASU 2015-03. Interest expense is recognized based on the coupon rate of the obligations. Costs associated with the acquisition of subordinated notes payable are amortized to interest expense over the expected term of the borrowing. |
Earnings Per Common Share | EARNINGS PER COMMON SHARE Basic earnings per common share (“EPS”) is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution of upon the exercise of stock options and vesting of restricted stock awards granted utilizing the treasury stock method. |
Income Taxes | INCOME TAXES The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities with regard to a change in tax rates is recognized in income in the period that includes the enactment date. Management assesses all available evidence to determine the amount of deferred tax assets that are more-likely-than-not to be realized. The available evidence used in connection with the assessments includes taxable income in prior periods, projected taxable income, potential tax planning strategies and projected reversals of deferred tax items. These assessments involve a degree of subjectivity and may undergo significant change. Changes to the evidence used in the assessments could have a material adverse effect on the Company’s results of operations in the period in which they occur. It is the Company’s policy to recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense in the consolidated statements of income. |
Derivatives, Methods of Accounting, Hedging Derivatives [Policy Text Block] | DERIVATIVES AND HEDGING ACTIVITIES The Company accounts for derivative instruments and hedging activities in accordance with FASB ASC Topic 815, Derivatives and Hedging . All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities, and appropriate documentation is maintained to support the final determination. All derivatives are recognized as either assets or liabilities on the consolidated statements of financial condition and measured at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. For derivatives designated as cash flow hedges, changes in fair value of the effective portion of the cash flow hedges are reported in accumulated other comprehensive income. When the cash flows associated with the hedged item are realized, the gain or loss included in accumulated other comprehensive income is recognized in the consolidated statement of income. The Company also has interest derivative positions that are not designated as hedging instruments. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. |
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 Topic 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 Topic 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 (losses) 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. Unrealized holding gains (losses) on the effective portion of the Company’s derivatives are included in accumulated other comprehensive income (loss), net of applicable income taxes, which will be reclassified to interest expense as interest payments are made on the Company’s debt. |
Treasury Stock | TREASURY STOCK The repurchase of the Company’s common stock is recorded at cost. At the time of reissuance, the treasury stock account is reduced using the average cost method. Gains and losses on the reissuance of common stock are recorded in additional paid-in capital, to the extent additional paid-in capital from any previous net gains on treasury share transactions exists. Any net deficiency is charged to retained earnings. |
Recent Accounting Developments | RECENT ACCOUNTING DEVELOPMENTS In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “ Measurement of Credit Losses on Financial Instruments ,” which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life. The changes are effective for public business entities that are SEC filers, for annual and interim periods in fiscal years beginning after December 15, 2019. All entities may early adopt the standard for annual and interim periods in fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact this standard will have on our results of operations and financial position. In March 2016, the FASB issued ASU 2016-09, “ Improvements to Employee Share-Based Payment Accounting,” which is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic only); and (7) intrinsic value (nonpublic only). The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. Even if an entity early adopts the amendments after the first interim period, the adoption date is as of the beginning of the year for the issues adopted by the cumulative-effect and prospective methods. Any adjustments to previously reported interim periods of that fiscal year should be included in the year-to-date results. If those previously reported interim results appear in any future filings, they are reported on the revised basis. The Company is currently evaluating the impact this standard will have on our results of operations and financial position. In March 2016, the FASB issued ASU 2016-06, “ Contingent Put and Call Options in Debt Instruments,” which clarifies that determining whether the economic characteristics of a put or call are clearly and closely related to its debt host requires only an assessment of the four-step decision sequence outlined in FASB ASC paragraph 815-15-25-24. Additionally, entities are not required to separately assess whether the contingency itself is clearly and closely related. ASU 2016-06 is effective for public business entities for interim and annual periods in fiscal years beginning after December 15, 2016. Early adoption is permitted in any interim period for which the entity’s financial statements have not been issued but would be retroactively applied to the beginning of the year that includes that interim period. The Company is currently evaluating the impact this standard will have on our results of operations and financial position. In March 2016, the FASB issued ASU 2016-05, “ Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships,” which clarifies that a change in one of the parties to a derivative contract (through novation) that is part of a hedge accounting relationship does not, by itself, require dedesignation of that relationship, as long as all other hedge accounting criteria continue to be met. This ASU is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact this standard will have on our results of operations and financial position. In February 2016, the FASB issued ASU 2016-02, “ Leases,” which, among other things, requires lessees to recognize most leases on-balance sheet. This will increase their reported assets and liabilities - in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP. ASU 2016-02 supersedes Topic 840, Leases . ASU 2016-02 is effective for public business entities, certain not-for-profit entities, and certain employee benefit plans for annual and interim periods in fiscal years beginning after December 15, 2018. This ASU mandates a modified retrospective transition method for all entities. The Company is currently evaluating the impact this standard will have on our results of operations and financial position. In January 2016, the FASB issued 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. The Company is 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 eliminated 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 was effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. The adoption of ASU 2015-16 did not 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 was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU 2015-10 did not 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 eliminated 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 were required to adopt the ASU retrospectively. The effective date for public business entities was fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The adoption of ASU 2015-07 did not 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 ASU 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 were not affected by the amendments in this update. For public business entities, the amendments in this update were effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. An entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented was adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity was required to comply with the applicable disclosures for a change in an accounting principle. These disclosures included the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that had 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 did not have a material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” This ASU changed 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 eliminated 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 was 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 was required to be reconsidered. This included 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. The adoption of ASU 2015-02 did not have a material impact on the Company’s consolidated financial statements. In January 2015, the FASB issued ASU 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” This ASU eliminated the concept of extraordinary items from U.S. GAAP as part of its simplification initiative. The ASU did not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence. The ASU was effective for interim and annual periods in fiscal years beginning after December 15, 2015. The ASU allowed prospective or retrospective application. The effective date was the same for both public entities and all other entities. The adoption of ASU 2015-01 did not 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),” required 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 ASU was 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 was permitted to all relevant prior periods. The adoption of ASU 2014-16 did not have a material impact on the Company’s consolidated financial statements. In August 2014, the FASB issued ASU 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 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 was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, for all entities. 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 did not have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 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 that 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. The Company is 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) | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes total consideration paid, assets acquired and liabilities assumed for the TKG acquisition on April 29, 2016: (Dollars in thousands) TKG Acquisition Consideration paid: Cash $ 15,000 Estimated earnout 3,687 Fair value of total consideration $ 18,687 Fair value of assets acquired: Cash and cash equivalents $ 905 Investment management fees receivable 912 Office properties and equipment 20 Other assets 106 Total assets acquired 1,943 Fair value of liabilities assumed: Other liabilities 1,402 Total liabilities assumed 1,402 Fair value net identifiable assets acquired 541 Intangible assets acquired 13,585 Goodwill 4,561 Total net assets purchased $ 18,687 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Goodwill is not amortized for book purposes, but is deductible for tax purposes. The following table shows the amount of other intangible assets acquired through the TKG acquisition on April 29, 2016, by class and estimated useful life. (Dollars in thousands) Gross Amount Estimated Trade name $ 2,850 300 Client Relationships: Sub-advisory client list 330 132 Separate managed accounts client list 715 168 Non-compete agreements 390 48 Total finite-lived intangibles $ 4,285 242 Client Relationships: Mutual fund client list 9,300 Indefinite life Total intangibles assets $ 13,585 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table presents unaudited pro forma financial information which combines the historical consolidated statements of income of the Company and The Killen Group, Inc. to give effect to the acquisition as if it had occurred on January 1, 2015, for the periods indicated. Pro Forma Six Months Ended June 30, (Dollars in thousands) 2016 2015 Total revenue $ 60,628 $ 59,724 Net income $ 13,359 $ 11,163 Earnings per common share: Basic $ 0.48 $ 0.40 Diluted $ 0.47 $ 0.40 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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: June 30, 2016 (Dollars in thousands) Amortized Gross Unrealized Gross Unrealized Estimated Investment securities available-for-sale: Corporate bonds $ 62,820 $ 652 $ 20 $ 63,452 Trust preferred securities 17,645 — 1,341 16,304 Non-agency mortgage-backed securities 5,750 — 4 5,746 Non-agency collateralized loan obligations 11,591 — 167 11,424 Agency collateralized mortgage obligations 47,130 54 322 46,862 Agency mortgage-backed securities 26,988 327 19 27,296 Agency debentures 4,739 — 89 4,650 Equity securities 8,497 — 420 8,077 Total investment securities available-for-sale 185,160 1,033 2,382 183,811 Investment securities held-to-maturity: Corporate bonds 19,446 507 53 19,900 Municipal bonds 25,328 703 — 26,031 Total investment securities held-to-maturity 44,774 1,210 53 45,931 Total $ 229,934 $ 2,243 $ 2,435 $ 229,742 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 |
Schedule of contractual maturities of debt securities available -for-sale | As of June 30, 2016 , the contractual maturities of the debt securities are: June 30, 2016 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Estimated Amortized Estimated Due in one year or less $ 21,954 $ 21,978 $ — $ — Due from one to five years 42,138 42,740 13,569 14,119 Due from five to ten years 9,729 9,564 29,778 30,303 Due after ten years 102,842 101,452 1,427 1,509 Total debt securities $ 176,663 $ 175,734 $ 44,774 $ 45,931 |
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, by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of June 30, 2016 and December 31, 2015 , respectively: June 30, 2016 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 $ — $ — $ 7,138 $ 20 $ 7,138 $ 20 Trust preferred securities 8,041 533 8,263 808 16,304 1,341 Non-agency mortgage-backed securities 5,746 4 — — 5,746 4 Non-agency collateralized loan obligations 1,554 44 9,870 123 11,424 167 Agency collateralized mortgage obligations 29,992 204 11,319 118 41,311 322 Agency mortgage-backed securities 1,693 19 — — 1,693 19 Agency debentures 4,650 89 — — 4,650 89 Equity securities — — 8,077 420 8,077 420 Total investment securities available-for-sale 51,676 893 44,667 1,489 96,343 2,382 Investment securities held-to-maturity: Corporate bonds 5,448 53 — — 5,448 53 Total investment securities held-to-maturity 5,448 53 — — 5,448 53 Total temporarily impaired securities $ 57,124 $ 946 $ 44,667 $ 1,489 $ 101,791 $ 2,435 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 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule of loans receivable | Loans held-for-investment were comprised of the following: June 30, 2016 (Dollars in thousands) Commercial Commercial Private Total Loans held-for-investment, before deferred fees $ 573,952 $ 990,740 $ 1,432,489 $ 2,997,181 Deferred loan (fees) costs (219 ) (2,709 ) 3,056 128 Loans held-for-investment, net of deferred fees 573,733 988,031 1,435,545 2,997,309 Allowance for loan losses (10,841 ) (4,872 ) (1,502 ) (17,215 ) Loans held-for-investment, net $ 562,892 $ 983,159 $ 1,434,043 $ 2,980,094 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 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 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 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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: June 30, 2016 (Dollars in thousands) Commercial Commercial Private Total Pass $ 520,589 $ 985,119 $ 1,434,954 $ 2,940,662 Special mention 24,465 — — 24,465 Substandard 28,679 2,912 591 32,182 Loans held-for-investment $ 573,733 $ 988,031 $ 1,435,545 $ 2,997,309 December 31, 2015 (Dollars in thousands) Commercial Commercial Private Total Pass $ 585,561 $ 858,396 $ 1,342,813 $ 2,786,770 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 |
Change in allowance for loan losses | Changes in the allowance for loan losses were as follows for the six months ended June 30, 2016 and 2015 : Six Months Ended June 30, 2016 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 11,064 $ 5,344 $ 1,566 $ 17,974 Provision (credit) for loan losses 738 (472 ) (64 ) 202 Charge-offs (1,543 ) — — (1,543 ) Recoveries 582 — — 582 Balance, end of period $ 10,841 $ 4,872 $ 1,502 $ 17,215 Six Months Ended June 30, 2015 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 13,501 $ 4,755 $ 2,017 $ 20,273 Provision for loan losses 1,109 (6 ) 7 1,110 Charge-offs — — — — Recoveries 11 — 13 24 Balance, end of period $ 14,621 $ 4,749 $ 2,037 $ 21,407 Changes in the allowance for loan losses were as follows for the three months ended June 30, 2016 and 2015 : Three Months Ended June 30, 2016 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 11,464 $ 5,666 $ 1,416 $ 18,546 Provision (credit) for loan losses 788 (794 ) 86 80 Charge-offs (1,543 ) — — (1,543 ) Recoveries 132 — — 132 Balance, end of period $ 10,841 $ 4,872 $ 1,502 $ 17,215 Three Months Ended June 30, 2015 (Dollars in thousands) Commercial Commercial Private Total Balance, beginning of period $ 14,191 $ 4,973 $ 2,041 $ 21,205 Provision (credit) for loan losses 426 (224 ) (17 ) 185 Charge-offs — — — — Recoveries 4 — 13 17 Balance, end of period $ 14,621 $ 4,749 $ 2,037 $ 21,407 |
Past due loans segregated by class of loan | The following tables present the age analysis of past due loans segregated by class of loan: June 30, 2016 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Total Commercial and industrial $ — $ — $ — $ — $ 573,733 $ 573,733 Commercial real estate — — 2,912 2,912 985,119 988,031 Private banking — — 224 224 1,435,321 1,435,545 Loans held-for-investment $ — $ — $ 3,136 $ 3,136 $ 2,994,173 $ 2,997,309 December 31, 2015 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Total Commercial and industrial $ — $ — $ 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 |
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 Six Months Ended June 30, 2016 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial and industrial $ 10,397 $ 10,703 $ 3,650 $ 8,262 $ — Commercial real estate — — — — — Private banking 580 710 580 641 — Total with a related allowance recorded 10,977 11,413 4,230 8,903 — Without a related allowance recorded: Commercial and industrial 5,733 11,202 — 7,118 13 Commercial real estate 2,912 9,067 — 2,912 — Private banking — — — — — Total without a related allowance recorded 8,645 20,269 — 10,030 13 Total: Commercial and industrial 16,130 21,905 3,650 15,380 13 Commercial real estate 2,912 9,067 — 2,912 — Private banking 580 710 580 641 — Total $ 19,622 $ 31,682 $ 4,230 $ 18,933 $ 13 As of and for the Twelve Months 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 |
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: June 30, 2016 (Dollars in thousands) Commercial Commercial Private Total Allowance for loan losses: Individually evaluated for impairment $ 3,650 $ — $ 580 $ 4,230 Collectively evaluated for impairment 7,191 4,872 922 12,985 Total allowance for loan losses $ 10,841 $ 4,872 $ 1,502 $ 17,215 Loans held-for-investment: Individually evaluated for impairment $ 16,130 $ 2,912 $ 580 $ 19,622 Collectively evaluated for impairment 557,603 985,119 1,434,965 2,977,687 Loans held-for-investment $ 573,733 $ 988,031 $ 1,435,545 $ 2,997,309 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 |
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) June 30, December 31, Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring: Performing loans accruing interest $ 474 $ 510 Non-accrual loans 8,923 12,894 Total troubled debt restructurings $ 9,397 $ 13,404 |
Financial effects of modifications | The financial effects of modifications made to loans designated as TDRs during three months ended June 30, 2015 , were as follows: Three Months Ended June 30, 2015 (Dollars in thousands) Count Recorded Investment at the time of Modification Current Recorded Investment Allowance for Loan Losses at the time of Modification Current Allowance for Loan Losses Commercial and industrial: Change in interest terms 1 $ 4,064 $ 4,021 $ 400 $ — Total 1 $ 4,064 $ 4,021 $ 400 $ — The financial effects of modifications made to loans designated as TDRs during six months ended June 30, 2015 , were as follows: Six Months Ended June 30, 2015 (Dollars in thousands) Count Recorded Investment at the time of Modification Current Recorded Investment Allowance for Loan Losses at the time of Modification Current Allowance for Loan Losses Commercial and industrial: Change in interest terms 1 $ 4,064 $ 4,021 $ 400 $ — Extended term and deferred principal 1 433 — 433 — Deferred principal 2 6,849 4,495 1,500 3,353 Total 4 $ 11,346 $ 8,516 $ 2,333 $ 3,353 |
Goodwill and Other Intangible32
Goodwill and Other Intangibles Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill [Abstract] | |
Schedule of Goodwill [Table Text Block] | The following table presents the change in goodwill for the six months ended June 30, 2016 and 2015 : Six Months Ended June 30, (Dollars in thousands) 2016 2015 Balance, beginning of period $ 34,163 $ 34,163 Additions 4,561 — Balance, end of period $ 38,724 $ 34,163 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The following table presents the change in intangible assets for the six months ended June 30, 2016 and 2015 : Six Months Ended June 30, (Dollars in thousands) 2016 2015 Balance, beginning of period $ 16,653 $ 18,211 Additions 13,585 — Amortization (828 ) (779 ) Balance, end of period $ 29,410 $ 17,432 The following table presents the gross amount of intangible assets and total accumulated amortization by class: June 30, 2016 December 31, 2015 (Dollars in thousands) Gross Amount Accumulated Amortization Net Carrying Amount Gross Amount Accumulated Amortization Net Carrying Amount Trade name $ 4,040 $ (158 ) $ 3,882 $ 1,190 $ (109 ) $ 1,081 Client Relationships: Sub-advisory client list 11,530 (1,941 ) 9,589 11,200 (1,521 ) 9,679 Separate managed accounts client list 1,810 (264 ) 1,546 1,095 (201 ) 894 Other institutional client list 5,950 (1,262 ) 4,688 5,950 (992 ) 4,958 Non-compete agreements 465 (60 ) 405 75 (34 ) 41 Total finite-lived intangibles $ 23,795 $ (3,685 ) $ 20,110 $ 19,510 $ (2,857 ) $ 16,653 Client Relationships: Mutual fund client list (indefinite-lived) 9,300 — 9,300 — — — Total intangibles assets $ 33,095 $ (3,685 ) $ 29,410 $ 19,510 $ (2,857 ) $ 16,653 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The following is a summary of the expected amortization expense for finite-lived intangibles assets, assuming no future additions, for each of the five years following June 30, 2016 : (Dollars in thousands) Amount June 30, 2017 $ 1,851 2018 1,845 2019 1,832 2020 1,816 2021 1,734 Thereafter 11,032 Total finite-lived intangibles $ 20,110 Indefinite-lived intangibles 9,300 Total intangibles assets $ 29,410 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Deposits [Abstract] | |
Schedule of deposits | Interest Rate Weighted Average Balance as of (Dollars in thousands) June 30, June 30, December 31, June 30, December 31, Demand and savings accounts: Noninterest-bearing checking accounts — — — $ 160,538 $ 159,859 Interest-bearing checking accounts 0.05 to 0.60% 0.49 % 0.42 % 181,318 136,037 Money market deposit accounts 0.05 to 1.50% 0.70 % 0.50 % 1,657,272 1,464,279 Total demand and savings accounts 1,999,128 1,760,175 Time deposits 0.05 to 1.44% 0.87 % 0.78 % 889,064 929,669 Total deposit balance $ 2,888,192 $ 2,689,844 Average rate paid on interest-bearing accounts 0.74 % 0.60 % |
Schedule of maturities of time deposits | The contractual maturity of time deposits, including brokered deposits, is as follows: (Dollars in thousands) June 30, December 31, 12 months or less $ 708,279 $ 645,004 12 months to 24 months 156,101 219,333 24 months to 36 months 24,684 65,332 36 months to 48 months — — 48 months to 60 months — — Over 60 months — — Total $ 889,064 $ 929,669 |
Schedule of interest expense on deposits by type of deposit | Interest expense on deposits is as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2016 2015 2016 2015 Interest-bearing checking accounts $ 154 $ 99 $ 307 $ 219 Money market deposit accounts 2,622 1,336 4,829 2,556 Time deposits 1,827 1,741 3,605 3,293 Total interest expense on deposits $ 4,603 $ 3,176 $ 8,741 $ 6,068 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings | As of June 30, 2016 and December 31, 2015 , borrowings were comprised of the following: June 30, 2016 December 31, 2015 (Dollars in thousands) Interest Rate Ending Balance Maturity Date Interest Rate Ending Balance Maturity Date FHLB borrowings: Issued 6/30/2016 0.51 % $ 75,000 7/1/2016 $ — Issued 6/29/2016 0.66 % 100,000 9/29/2016 — Issued 12/31/2015 — 0.51 % 170,000 1/4/2016 Issued 7/29/2015 0.61 % 25,000 8/4/2016 0.61 % 25,000 8/4/2016 Issued 7/29/2015 0.72 % 25,000 11/3/2016 0.72 % 25,000 11/3/2016 Subordinated notes payable (net of debt issuance costs of $591 and $692) 5.75 % 34,409 7/1/2019 5.75 % 34,308 7/1/2019 Total borrowings, net $ 259,409 $ 254,308 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 : June 30, 2016 Actual For Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total risk-based capital ratio Company $ 321,170 12.76 % $ 201,322 8.00 % N/A N/A Bank $ 304,080 12.24 % $ 198,774 8.00 % $ 248,468 10.00 % Tier 1 risk-based capital ratio Company $ 283,157 11.25 % $ 150,992 6.00 % N/A N/A Bank $ 286,628 11.54 % $ 149,081 6.00 % $ 198,774 8.00 % Common equity tier 1 risk-based capital ratio Company $ 283,157 11.25 % $ 113,244 4.50 % N/A N/A Bank $ 286,628 11.54 % $ 111,810 4.50 % $ 161,504 6.50 % Tier 1 leverage ratio Company $ 283,157 8.41 % $ 134,737 4.00 % N/A N/A Bank $ 286,628 8.57 % $ 133,752 4.00 % $ 167,190 5.00 % 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 % |
Stock Transactions (Tables)
Stock Transactions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Schedule of common shares, activity | The tables below show the changes in the Company’s common shares outstanding during the periods indicated. Number of Balance, December 31, 2014 28,060,888 Issuance of restricted common stock 255,916 Forfeitures of restricted common stock — Exercise of stock options 5,000 Purchase of treasury stock (321,109 ) Balance, June 30, 2015 28,000,695 Balance, December 31, 2015 28,056,195 Issuance of restricted common stock 394,309 Forfeitures of restricted common stock (4,000 ) Exercise of stock options 22,500 Purchase of treasury stock (257,722 ) Balance, June 30, 2016 28,211,282 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The computation of basic and diluted earnings per common share for the periods presented is as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 2016 2015 2016 2015 Net income available to common shareholders $ 6,773 $ 5,728 $ 12,616 $ 10,784 Weighted average common shares outstanding: Basic 27,549,475 27,718,226 27,601,331 27,804,599 Non-vested restricted stock - dilutive 180,317 48,933 147,823 26,780 Stock options - dilutive 495,612 416,889 472,728 345,131 Diluted 28,225,404 28,184,048 28,221,882 28,176,510 Earnings per common share: Basic $ 0.25 $ 0.21 $ 0.46 $ 0.39 Diluted $ 0.24 $ 0.20 $ 0.45 $ 0.38 |
Schedule of antidilutive securities excluded from computation of earnings per share | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Anti-dilutive shares (1) 421,661 707,893 627,893 973,393 (1) Included stock options and non-vested restricted stock not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive. |
Derivatives and Hedging Activ38
Derivatives and Hedging Activity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 : Asset Derivatives Liability Derivatives as of June 30, 2016 as of June 30, 2016 (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 $ 221 Derivatives not designated as hedging instruments: Interest rate products Other assets $ 21,292 Other liabilities $ 22,881 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 |
Schedule of derivative instruments, gain (loss) in statement of financial performance | The tables below present the effect of the Company’s derivative financial instruments in the consolidated statements of income for the periods presented: Three Months Ended June 30, (Dollars in thousands) 2016 2015 Derivatives designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Interest income $ (23 ) $ (76 ) Non-interest income 1 2 Total $ (22 ) $ (74 ) Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Non-interest income $ (385 ) $ 261 Total $ (385 ) $ 261 Six Months Ended June 30, (Dollars in thousands) 2016 2015 Derivatives designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Interest income $ (47 ) $ (158 ) Non-interest income 2 2 Total $ (45 ) $ (156 ) Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Interest rate products Non-interest income $ (840 ) $ 44 Total $ (840 ) $ 44 |
Disclosures About Fair Value 39
Disclosures About Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 : June 30, 2016 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets / Financial assets: Investment securities available-for-sale: Corporate bonds $ — $ 63,452 $ — $ 63,452 Trust preferred securities — 16,304 — 16,304 Non-agency mortgage-backed securities — 5,746 — 5,746 Non-agency collateralized loan obligations — 11,424 — 11,424 Agency collateralized mortgage obligations — 46,862 — 46,862 Agency mortgage-backed securities — 27,296 — 27,296 Agency debentures — 4,650 — 4,650 Equity securities 8,077 — — 8,077 Interest rate swaps — 21,292 — 21,292 Total financial assets 8,077 197,026 — 205,103 Financial liabilities: Interest rate swaps — 23,102 — 23,102 Total financial liabilities $ — $ 23,102 $ — $ 23,102 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 |
Fair value measurements, nonrecurring | The following tables represent the balances of assets measured at fair value on a non-recurring basis as of June 30, 2016 and December 31, 2015 : June 30, 2016 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Loans measured for impairment, net $ — $ — $ 12,005 $ 12,005 Other real estate owned — — 1,730 1,730 Total assets $ — $ — $ 13,735 $ 13,735 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 |
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 June 30, 2016 and December 31, 2015 : June 30, 2016 (Dollars in thousands) Fair Value Valuation Techniques (1) Significant Unobservable Inputs Weighted Average Loans measured for impairment, net $ 12,005 Discounted cash flow Discount due to restructured nature of operations 7 % Other real estate owned $ 1,730 Appraisal value Discount due 10 % (1) Fair value is generally determined through independent appraisals of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent. December 31, 2015 (Dollars in thousands) Fair Value Valuation Techniques (1) Significant Unobservable Inputs Weighted Average 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 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. |
Schedule of fair and carrying value of financial assets and liabilities | A summary of the carrying amounts and estimated fair values of financial instruments is as follows: June 30, 2016 December 31, 2015 (Dollars in thousands) Fair Value Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents 1 $ 114,297 $ 114,297 $ 96,676 $ 96,676 Investment securities available-for-sale: debt 2 175,734 175,734 160,560 160,560 Investment securities available-for-sale: equity 1 8,077 8,077 7,759 7,759 Investment securities held-to-maturity 2 44,774 45,931 47,290 48,099 Federal Home Loan Bank stock 2 13,632 13,632 9,802 9,802 Loans held-for-investment, net 3 2,980,094 2,980,674 2,823,310 2,813,278 Accrued interest receivable 2 7,774 7,774 7,056 7,056 Investment management fees receivable 2 7,674 7,674 6,191 6,191 Bank owned life insurance 2 60,905 60,905 60,019 60,019 Interest rate swaps 2 21,292 21,292 8,662 8,662 Other real estate owned 3 1,730 1,730 1,730 1,730 Financial liabilities: Deposits 2 $ 2,888,192 $ 2,889,349 $ 2,689,844 $ 2,690,693 Borrowings, net 2 259,409 260,353 254,308 255,179 Accrued acquisition earnout liability 3 3,687 3,687 — — Interest rate swaps 2 23,102 23,102 9,592 9,592 |
Changes in Accumulated Other 40
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive income | The following table shows the changes in accumulated other comprehensive income (loss), for the periods presented: Three Months Ended June 30, 2016 2015 (Dollars in thousands) Investment Securities Derivatives Accumulated Other Comprehensive Income (Loss) Investment Securities Derivatives Accumulated Other Comprehensive Income (Loss) Balance, beginning of period $ (2,094 ) $ — $ (2,094 ) $ (345 ) $ — $ (345 ) Change in unrealized holding gains (losses) 1,114 (56 ) 1,058 130 — 130 Gains reclassified from other comprehensive income (1) (40 ) — (40 ) — — — Net other comprehensive income (loss) 1,074 (56 ) 1,018 130 — 130 Balance, end of period $ (1,020 ) $ (56 ) $ (1,076 ) $ (215 ) $ — $ (215 ) (1) Consists of net realized gain on sale and call of investment securities of $62,000 and $0 , net of income tax expense of $22,000 and $0 for the three months ended June 30, 2016 and 2015 , respectively. Six Months Ended June 30, 2016 2015 (Dollars in thousands) Investment Securities Derivatives Accumulated Other Comprehensive Income (Loss) Investment Securities Derivatives Accumulated Other Comprehensive Income (Loss) Balance, beginning of period $ (1,443 ) $ — $ (1,443 ) $ (627 ) $ — $ (627 ) Change in unrealized holding gains (losses) 464 (56 ) 408 423 — 423 Gains reclassified from other comprehensive income (1) (41 ) — (41 ) (11 ) — (11 ) Net other comprehensive income (loss) 423 (56 ) 367 412 — 412 Balance, end of period $ (1,020 ) $ (56 ) $ (1,076 ) $ (215 ) $ — $ (215 ) (1) Consists of net realized gain on sale and call of investment securities of $63,000 and $17,000 , net of income tax expense of $22,000 and $6,000 for the six months ended June 30, 2016 and 2015 , respectively. |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 that are necessary for purposes of reconciliation to the consolidated amounts. (Dollars in thousands) June 30, December 31, Assets: (unaudited) Bank $ 3,441,794 $ 3,236,756 Investment management 82,659 65,516 Parent and other 4,138 (101 ) Total assets $ 3,528,591 $ 3,302,171 Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 (Dollars in thousands) Bank Investment Parent Consolidated Bank Investment Parent Consolidated Income statement data: (unaudited) (unaudited) Interest income $ 23,730 $ — $ 65 $ 23,795 $ 20,429 $ — $ 52 $ 20,481 Interest expense 5,025 — 551 5,576 3,259 — 549 3,808 Net interest income (loss) 18,705 — (486 ) 18,219 17,170 — (497 ) 16,673 Provision for loan losses 80 — — 80 185 — — 185 Net interest income (loss) after provision for loan losses 18,625 — (486 ) 18,139 16,985 — (497 ) 16,488 Non-interest income: Investment management fees — 9,517 (55 ) 9,462 — 7,556 (42 ) 7,514 Net gain on the sale and call of investment securities 62 — — 62 — — — — Other non-interest income 1,922 1 — 1,923 2,062 — — 2,062 Total non-interest income 1,984 9,518 (55 ) 11,447 2,062 7,556 (42 ) 9,576 Non-interest expense: Intangible amortization expense — 438 — 438 — 390 — 390 Other non-interest expense 12,299 6,683 37 19,019 11,690 5,497 5 17,192 Total non-interest expense 12,299 7,121 37 19,457 11,690 5,887 5 17,582 Income (loss) before tax 8,310 2,397 (578 ) 10,129 7,357 1,669 (544 ) 8,482 Income tax expense (benefit) 2,662 917 (223 ) 3,356 2,291 633 (170 ) 2,754 Net income (loss) $ 5,648 $ 1,480 $ (355 ) $ 6,773 $ 5,066 $ 1,036 $ (374 ) $ 5,728 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 (Dollars in thousands) Bank Investment Parent Consolidated Bank Investment Parent Consolidated Income statement data: (unaudited) (unaudited) Interest income $ 47,017 $ — $ 138 $ 47,155 $ 40,577 $ — $ 106 $ 40,683 Interest expense 9,457 — 1,102 10,559 6,259 — 1,088 7,347 Net interest income (loss) 37,560 — (964 ) 36,596 34,318 — (982 ) 33,336 Provision for loan losses 202 — — 202 1,110 — — 1,110 Net interest income (loss) after provision for loan losses 37,358 — (964 ) 36,394 33,208 — (982 ) 32,226 Non-interest income: Investment management fees — 16,590 (109 ) 16,481 — 15,258 (89 ) 15,169 Net gain on the sale and call of investment securities 63 — — 63 17 — — 17 Other non-interest income 3,817 1 — 3,818 3,240 1 — 3,241 Total non-interest income 3,880 16,591 (109 ) 20,362 3,257 15,259 (89 ) 18,427 Non-interest expense: Intangible amortization expense — 828 — 828 — 779 — 779 Other non-interest expense 24,623 11,977 35 36,635 22,943 10,995 (33 ) 33,905 Total non-interest expense 24,623 12,805 35 37,463 22,943 11,774 (33 ) 34,684 Income (loss) before tax 16,615 3,786 (1,108 ) 19,293 13,522 3,485 (1,038 ) 15,969 Income tax expense (benefit) 5,653 1,448 (424 ) 6,677 4,188 1,321 (324 ) 5,185 Net income (loss) $ 10,962 $ 2,338 $ (684 ) $ 12,616 $ 9,334 $ 2,164 $ (714 ) $ 10,784 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016USD ($)officesportfoliosubsidiary | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of wholly-owned subsidiaries | subsidiary | 3 | ||
Assets under Management, Carrying Amount | $ 10,590,000 | ||
Number of representative offices, additional to main office | offices | 4 | ||
Consecutive period loan is current | 6 months | ||
Number of Loan Portfolios | portfolio | 3 | ||
Bad debt expense | $ 0 | $ 0 | |
Allowance for uncollectible accounts | $ 0 | $ 0 | |
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Original maturity of short-term investments | 90 days | ||
Useful life | 25 years | ||
Estimated useful lives of office properties and equipment | 10 years | ||
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Past due period for loans | 90 days | ||
Useful life | 4 years | ||
Estimated useful lives of office properties and equipment | 3 years |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 29, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||
Assets under Management, Carrying Amount | $ 10,590,000 | ||||
Intangible Assets, Gross (Excluding Goodwill) | 33,095 | $ 19,510 | |||
Goodwill | 38,724 | $ 34,163 | 34,163 | $ 34,163 | |
Finite-Lived Intangible Assets, Gross | 23,795 | 19,510 | |||
Mutual Fund client list [Member] | |||||
Business Acquisition [Line Items] | |||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 9,300 | 0 | |||
Trade Names [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 4,040 | 1,190 | |||
Sub-advisory client list [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 11,530 | 11,200 | |||
Separate Managed Accounts Client List [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 1,810 | 1,095 | |||
Noncompete Agreements [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 465 | 75 | |||
The Killen Group, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Assets under Management, Carrying Amount | $ 2,020,000 | ||||
Payments to Acquire Business, Gross | 15,000 | ||||
Business Combination, EBITDA contingency for purchase price | 3,000 | ||||
Business Combination, Consideration Transferred, Other | 3,687 | ||||
Business Combination, Consideration, Total | 18,687 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 905 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Investment Management Fees Receivable | 912 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 20 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 106 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 1,943 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 1,402 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 1,402 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 541 | ||||
Intangible Assets, Gross (Excluding Goodwill) | 13,585 | ||||
Goodwill | 4,561 | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 18,687 | ||||
Business Combination, Acquisition Related Costs | 1 | $ 601 | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 1,800 | ||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 350 | ||||
Finite-Lived Intangible Assets, Gross | $ 4,285 | ||||
Finite-Lived Intangible Asset, Useful Life | 242 months | ||||
Business Acquisition, Pro Forma Revenue | 60,628 | 59,724 | |||
Business Acquisition, Pro Forma Net Income (Loss) | $ 13,359 | $ 11,163 | |||
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 0.48 | $ 0.40 | |||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 0.47 | $ 0.40 | |||
The Killen Group, Inc. [Member] | Mutual Fund client list [Member] | |||||
Business Acquisition [Line Items] | |||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 9,300 | ||||
The Killen Group, Inc. [Member] | Trade Names [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 2,850 | ||||
Finite-Lived Intangible Asset, Useful Life | 300 months | ||||
The Killen Group, Inc. [Member] | Sub-advisory client list [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 330 | ||||
Finite-Lived Intangible Asset, Useful Life | 132 months | ||||
The Killen Group, Inc. [Member] | Separate Managed Accounts Client List [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 715 | ||||
Finite-Lived Intangible Asset, Useful Life | 168 months | ||||
The Killen Group, Inc. [Member] | Noncompete Agreements [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 390 | ||||
Finite-Lived Intangible Asset, Useful Life | 48 months |
Investment Securities - Availab
Investment Securities - Available-for-sale and Held-to-maturity Securities Investment Types (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Investment securities available-for-sale: | ||
Investments AFS (cost) | $ 185,160 | $ 170,337 |
Available-for-sale Securities, Gross Unrealized Appreciation | 1,033 | 393 |
Available-for-sale Securities, Gross Unrealized Depreciation | 2,382 | 2,411 |
Available-for-sale Securities, Estimated Fair Value | 183,811 | 168,319 |
Investment securities held-to-maturity: | ||
Held-to-maturity Securities, Amortized Cost | 44,774 | 47,290 |
Held-to-maturity Securities, Gross Unrealized Appreciation | 1,210 | 894 |
Held-to-maturity Securities, Gross Unrealized Depreciation | 53 | 85 |
Investments HTM (fair value) | 45,931 | 48,099 |
Amortized Cost | 229,934 | 217,627 |
Gross Unrealized Appreciation | 2,243 | 1,287 |
Gross Unrealized Depreciation | 2,435 | 2,496 |
Estimated Fair Value | 229,742 | 216,418 |
Corporate bonds | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 62,820 | 43,952 |
Available-for-sale Securities, Gross Unrealized Appreciation | 652 | 18 |
Available-for-sale Securities, Gross Unrealized Depreciation | 20 | 237 |
Available-for-sale Securities, Estimated Fair Value | 63,452 | 43,733 |
Investment securities held-to-maturity: | ||
Held-to-maturity Securities, Amortized Cost | 19,446 | 19,448 |
Held-to-maturity Securities, Gross Unrealized Appreciation | 507 | 498 |
Held-to-maturity Securities, Gross Unrealized Depreciation | 53 | 84 |
Investments HTM (fair value) | 19,900 | 19,862 |
Trust preferred securities | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 17,645 | 17,579 |
Available-for-sale Securities, Gross Unrealized Appreciation | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Depreciation | 1,341 | 978 |
Available-for-sale Securities, Estimated Fair Value | 16,304 | 16,601 |
Non-agency mortgage-backed securities | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 5,750 | 5,756 |
Available-for-sale Securities, Gross Unrealized Appreciation | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Depreciation | 4 | 13 |
Available-for-sale Securities, Estimated Fair Value | 5,746 | 5,743 |
Non-agency collateralized loan obligations | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 11,591 | 11,843 |
Available-for-sale Securities, Gross Unrealized Appreciation | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Depreciation | 167 | 132 |
Available-for-sale Securities, Estimated Fair Value | 11,424 | 11,711 |
Agency collateralized mortgage obligations | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 47,130 | 49,544 |
Available-for-sale Securities, Gross Unrealized Appreciation | 54 | 92 |
Available-for-sale Securities, Gross Unrealized Depreciation | 322 | 265 |
Available-for-sale Securities, Estimated Fair Value | 46,862 | 49,371 |
Agency mortgage-backed securities | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 26,988 | 28,586 |
Available-for-sale Securities, Gross Unrealized Appreciation | 327 | 270 |
Available-for-sale Securities, Gross Unrealized Depreciation | 19 | 187 |
Available-for-sale Securities, Estimated Fair Value | 27,296 | 28,669 |
Agency debentures | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 4,739 | 4,719 |
Available-for-sale Securities, Gross Unrealized Appreciation | 0 | 13 |
Available-for-sale Securities, Gross Unrealized Depreciation | 89 | 0 |
Available-for-sale Securities, Estimated Fair Value | 4,650 | 4,732 |
Investment securities held-to-maturity: | ||
Held-to-maturity Securities, Amortized Cost | 2,453 | |
Held-to-maturity Securities, Gross Unrealized Appreciation | 19 | |
Held-to-maturity Securities, Gross Unrealized Depreciation | 0 | |
Investments HTM (fair value) | 2,472 | |
Equity securities | ||
Investment securities available-for-sale: | ||
Investments AFS (cost) | 8,497 | 8,358 |
Available-for-sale Securities, Gross Unrealized Appreciation | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Depreciation | 420 | 599 |
Available-for-sale Securities, Estimated Fair Value | 8,077 | 7,759 |
Municipal bonds | ||
Investment securities held-to-maturity: | ||
Held-to-maturity Securities, Amortized Cost | 25,328 | 25,389 |
Held-to-maturity Securities, Gross Unrealized Appreciation | 703 | 377 |
Held-to-maturity Securities, Gross Unrealized Depreciation | 0 | 1 |
Investments HTM (fair value) | $ 26,031 | $ 25,765 |
Investment Securities - Avail45
Investment Securities - Available-for-sale Securities Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Due in one year or less | $ 21,954 | |
Due from one to five years | 42,138 | |
Due from five to ten years | 9,729 | |
Due after ten years | 102,842 | |
Amortized Cost | 176,663 | |
Available-for-sale Securities, Debt Maturities, Estimated Fair Value | ||
Due in one year or less | 21,978 | |
Due from one to five years | 42,740 | |
Due from five to ten years | 9,564 | |
Due after ten years | 101,452 | |
Available-for-Sale, Estimated Fair Value | 175,734 | |
Held-to-maturity Securities, Debt Maturities, Amortized Cost | ||
Due in one year or less | 0 | |
Due from one to five years | 13,569 | |
Due from five to ten years | 29,778 | |
Due after ten years | 1,427 | |
Held-to-maturity Securities | 44,774 | $ 47,290 |
Held-to-maturity Securities, Debt Maturities, Estimated Fair Value | ||
Due in one year or less | 0 | |
Due from one to five years | 14,119 | |
Due from five to ten years | 30,303 | |
Due after ten years | 1,509 | |
Held-to-maturity Securities, Estimated Fair Value | $ 45,931 | $ 48,099 |
Investment Securities - Avail46
Investment Securities - Available-for-sale Securities Unrealized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | $ 51,676 | $ 68,552 |
12 Months or More | 44,667 | 51,135 |
Total | 96,343 | 119,687 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 893 | 924 |
12 Months or More | 1,489 | 1,487 |
Total | 2,382 | 2,411 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 5,448 | 10,434 |
12 Months or More | 0 | 0 |
Total | 5,448 | 10,434 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 53 | 85 |
12 Months or More | 0 | 0 |
Total | 53 | 85 |
Less than 12 Months, Fair Value, Total Impaired Securities | 57,124 | 78,986 |
Less than 12 Months, Unrealized losses, Total Impaired Securities | 946 | 1,009 |
12 Months or More, Fair Value, Total Impaired Securities | 44,667 | 51,135 |
12 Months or More, Unrealized losses, Total Impaired Securities | 1,489 | 1,487 |
Total, Fair Value, Total Impaired Securities | 101,791 | 130,121 |
Total, Unrealized losses, Total Impaired Securities | 2,435 | 2,496 |
Corporate bonds | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 0 | 23,582 |
12 Months or More | 7,138 | 6,460 |
Total | 7,138 | 30,042 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 0 | 155 |
12 Months or More | 20 | 82 |
Total | 20 | 237 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 5,448 | 9,863 |
12 Months or More | 0 | 0 |
Total | 5,448 | 9,863 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 53 | 84 |
12 Months or More | 0 | 0 |
Total | 53 | 84 |
Trust preferred securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 8,041 | 8,076 |
12 Months or More | 8,263 | 8,526 |
Total | 16,304 | 16,602 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 533 | 471 |
12 Months or More | 808 | 507 |
Total | 1,341 | 978 |
Non-agency mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 5,746 | 0 |
12 Months or More | 0 | 5,743 |
Total | 5,746 | 5,743 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 4 | 0 |
12 Months or More | 0 | 13 |
Total | 4 | 13 |
Non-agency collateralized loan obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 1,554 | 9,859 |
12 Months or More | 9,870 | 0 |
Total | 11,424 | 9,859 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 44 | 132 |
12 Months or More | 123 | 0 |
Total | 167 | 132 |
Agency collateralized mortgage obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 29,992 | 25,566 |
12 Months or More | 11,319 | 11,836 |
Total | 41,311 | 37,402 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 204 | 151 |
12 Months or More | 118 | 114 |
Total | 322 | 265 |
Agency mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 1,693 | 1,469 |
12 Months or More | 0 | 10,811 |
Total | 1,693 | 12,280 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 19 | 15 |
12 Months or More | 0 | 172 |
Total | 19 | 187 |
Agency debentures | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 4,650 | |
12 Months or More | 0 | |
Total | 4,650 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 89 | |
12 Months or More | 0 | |
Total | 89 | |
Equity securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 8,077 | 7,759 |
Total | 8,077 | 7,759 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 420 | 599 |
Total | $ 420 | 599 |
Municipal bonds | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Less than 12 Months | 571 | |
12 Months or More | 0 | |
Total | 571 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 Months | 1 | |
12 Months or More | 0 | |
Total | $ 1 |
Investment Securities - Avail47
Investment Securities - Available-for-sale Securities Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)position | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)position | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)position | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Interest income on investments securities | $ 1,000 | $ 647 | $ 2,000 | $ 1,300 | |
Non-taxable interest income | 118 | 98 | 232 | 188 | |
Dividend income | 167 | 106 | 337 | 367 | |
Available-for-sale securities with a contractual maturity due after ten years | 101,452 | 101,452 | |||
Floating rate securities | $ 89,300 | $ 89,300 | |||
Percent of available-for-sale securities that are floating rate securities | 88.00% | 88.00% | |||
Held-to-maturity securities, debt maturities due from five to ten years | $ 29,778 | $ 29,778 | |||
Held-to-maturity securities, debt maturities due from five to ten years, callable | 8,000 | 8,000 | |||
Proceeds from the sale of investment securities available-for-sale | 2,400 | 0 | 3,040 | 9,734 | |
Gross realized gains on available-for-sale securities | 19 | 0 | 20 | 34 | |
Gross realized losses on available-for-sale securities | $ 3 | $ 0 | 3 | 17 | |
Amount of Held-to-Maturity Investment Security Called | 2,500 | ||||
Held-to-Maturity Securities, Gross Realized Gains | $ 46 | ||||
Number of available-for-sale positions in unrealized loss positions | position | 28 | 28 | 36 | ||
Available-for-sale Securities, Gross Unrealized Depreciation | $ 2,382 | $ 2,382 | $ 2,411 | ||
Available-for-sale, continuous unrealized loss position for more than 12 months | $ 1,489 | $ 1,489 | $ 1,487 | ||
Available-for-sale, number of positions in an unrealized loss position for more than 12 months | position | 10 | 10 | 14 | ||
Held-to-maturity securities, aggregate unrealized losses temporary impaired | $ 53 | $ 53 | $ 85 | ||
Held-to-maturity, number of positions in an unrealized loss that were temporarily impaired position | position | 3 | 3 | 6 | ||
Held-to-maturity securities, aggregate unrealized losses | $ 53 | $ 53 | $ 85 | ||
Held-to-maturity, number of positions in an unrealized loss position for more than 12 months | position | 0 | 0 | 0 | ||
Investment securities trading, at fair value | $ 0 | $ 0 | $ 0 | ||
Federal Home Loan Bank Stock | 13,632 | 13,632 | $ 9,802 | ||
Payments for (Proceeds from) Federal Home Loan Bank Stock | (3,830) | $ 1,328 | |||
Federal Home Loan Bank | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale securities available to be pledged as collateral for borrowings | $ 5,800 | $ 5,800 |
Loans - Loans by Class (Details
Loans - Loans by Class (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment, net of deferred fees | $ 2,997,309 | $ 2,841,284 | ||||
Allowance for loan losses | (17,215) | $ (18,546) | (17,974) | $ (21,407) | $ (21,205) | $ (20,273) |
Loans held-for-investment, net | 2,980,094 | 2,823,310 | ||||
Loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment, before deferred fees | 2,997,181 | 2,841,708 | ||||
Deferred loan (fees) costs | 128 | (424) | ||||
Loans held-for-investment, net of deferred fees | 2,997,309 | 2,841,284 | ||||
Allowance for loan losses | (17,215) | (17,974) | ||||
Loans held-for-investment, net | 2,980,094 | 2,823,310 | ||||
Commercial and Industrial | Loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment, before deferred fees | 573,952 | 634,857 | ||||
Deferred loan (fees) costs | (219) | (625) | ||||
Loans held-for-investment, net of deferred fees | 573,733 | 634,232 | ||||
Allowance for loan losses | (10,841) | (11,064) | ||||
Loans held-for-investment, net | 562,892 | 623,168 | ||||
Commercial Real Estate | Loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment, before deferred fees | 990,740 | 864,863 | ||||
Deferred loan (fees) costs | (2,709) | (2,675) | ||||
Loans held-for-investment, net of deferred fees | 988,031 | 862,188 | ||||
Allowance for loan losses | (4,872) | (5,344) | ||||
Loans held-for-investment, net | 983,159 | 856,844 | ||||
Private Banking | Loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held-for-investment, before deferred fees | 1,432,489 | 1,341,988 | ||||
Deferred loan (fees) costs | 3,056 | 2,876 | ||||
Loans held-for-investment, net of deferred fees | 1,435,545 | 1,344,864 | ||||
Allowance for loan losses | (1,502) | (1,566) | ||||
Loans held-for-investment, net | $ 1,434,043 | $ 1,343,298 |
Loans - Narrative (Details)
Loans - Narrative (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016USD ($)letter | Jun. 30, 2015USD ($)letter | Dec. 31, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unfunded commitments, including letters of credit at prevailing market interest rates | $ 1,480,000 | $ 1,270,000 | |
Lending commitments maturing in the next 12 months | 1,160,000 | ||
Lending commitments maturing in second and third year, total | 192,400 | ||
Lending commitments maturing after third year | 134,100 | ||
Reserve for losses on unfunded commitments | 579 | 546 | |
Loans in the process of origination | 34,000 | 31,100 | |
Standby letters of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unfunded commitments, including letters of credit at prevailing market interest rates | 83,500 | $ 89,900 | |
Standby letters of credit expiring in next 12 months | $ 44,100 | ||
Number of letters of credit drawn | letter | 1 | 1 | |
Standby letters of credit | $ 100 | $ 100 |
Allowance for Loan Losses - Nar
Allowance for Loan Losses - Narrative (Details) $ in Thousands | Jun. 30, 2016USD ($)portfolioloans | Dec. 31, 2015USD ($)loans | Jun. 30, 2016USD ($)portfolioloans | Jun. 30, 2015USD ($)loans | Jun. 30, 2016USD ($)portfolioloans | Jun. 30, 2015USD ($)loans | Dec. 31, 2015USD ($)loans | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Number of Loan Portfolios | portfolio | 3 | 3 | 3 | |||||||
Charge-offs | $ 1,543 | $ 0 | $ 1,543 | $ 0 | ||||||
Recoveries | 132 | 17 | 582 | 24 | ||||||
Impaired and non-accrual loans | $ 19,622 | $ 17,170 | 19,622 | 19,622 | $ 17,170 | |||||
Impaired financing receivable, interest income, cash basis method | 0 | 0 | ||||||||
Loans 90 days or more past due and still accruing | 0 | 0 | 0 | 0 | 0 | |||||
Impaired financing receivable, related allowance | 4,230 | 4,545 | 4,230 | 4,230 | 4,545 | |||||
Allowance for loan losses | 17,215 | 17,974 | 17,215 | 21,407 | 17,215 | 21,407 | 17,974 | $ 18,546 | $ 21,205 | $ 20,273 |
Impaired loans | 8,645 | 4,628 | 8,645 | 8,645 | 4,628 | |||||
Troubled debt restructurings | 9,397 | 13,404 | 9,397 | 9,397 | 13,404 | |||||
Unused commitments | 1,700 | 1,700 | ||||||||
Other real estate | 1,700 | 1,700 | 1,700 | 1,700 | 1,700 | |||||
Mortgage Loans in process of foreclosure, amount | 0 | 0 | 0 | |||||||
Commercial and Industrial | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Charge-offs | 1,543 | 0 | 1,543 | 0 | ||||||
Recoveries | $ 132 | $ 4 | $ 582 | $ 11 | ||||||
Number of loans with charge offs | loans | 1 | |||||||||
Number of loans with recoveries | loans | 4 | 2 | 6 | 3 | ||||||
Impaired and non-accrual loans | 16,130 | 12,310 | $ 16,130 | $ 16,130 | 12,310 | |||||
Impaired financing receivable, related allowance | 3,650 | 3,800 | 3,650 | 3,650 | 3,800 | |||||
Allowance for loan losses | 10,841 | 11,064 | 10,841 | $ 14,621 | 10,841 | $ 14,621 | 11,064 | 11,464 | 14,191 | 13,501 |
Impaired loans | 5,733 | 513 | 5,733 | 5,733 | 513 | |||||
Commercial Real Estate | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Charge-offs | 0 | 0 | 0 | 0 | ||||||
Recoveries | 0 | 0 | 0 | 0 | ||||||
Impaired and non-accrual loans | 2,912 | 2,912 | 2,912 | 2,912 | 2,912 | |||||
Impaired financing receivable, related allowance | 0 | 0 | 0 | 0 | 0 | |||||
Allowance for loan losses | 4,872 | 5,344 | 4,872 | 4,749 | 4,872 | 4,749 | 5,344 | 5,666 | 4,973 | 4,755 |
Impaired loans | 2,912 | 2,912 | 2,912 | 2,912 | 2,912 | |||||
Private banking | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Charge-offs | 0 | 0 | 0 | 0 | ||||||
Recoveries | 0 | $ 13 | 0 | $ 13 | ||||||
Number of loans with recoveries | loans | 1 | 1 | ||||||||
Impaired and non-accrual loans | 580 | 1,948 | 580 | 580 | 1,948 | |||||
Impaired financing receivable, related allowance | 580 | 745 | 580 | 580 | 745 | |||||
Allowance for loan losses | 1,502 | 1,566 | 1,502 | $ 2,037 | 1,502 | $ 2,037 | 1,566 | $ 1,416 | $ 2,041 | $ 2,017 |
Impaired loans | $ 0 | $ 1,203 | $ 0 | $ 0 | $ 1,203 | |||||
Minimum | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Past due period for loans | 90 days | |||||||||
Financing Receivable | Cash and Marketable Securities Collateral Risk | Private banking | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Percentage of total private banking loans | 89.50% | 87.80% | ||||||||
Impaired and Non-accrual [Member] | Commercial and Industrial | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Number of loans | loans | 2 | 3 | 2 | 2 | 3 | |||||
Impaired and Non-accrual [Member] | Commercial Real Estate | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Number of loans | loans | 1 | 1 | 1 | 1 | 1 | |||||
Impaired and Non-accrual [Member] | Private banking | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Number of loans | loans | 2 | 2 | ||||||||
Non-accrual [Member] | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Troubled debt restructurings | $ 8,923 | $ 12,894 | $ 8,923 | $ 8,923 | $ 12,894 | |||||
Financing receivable, number of contracts, trouble debt restructuring in default | loans | 2 | |||||||||
Payment defaults for loans modified as TDRs | $ 0 | $ 5,600 | ||||||||
Non-accrual [Member] | Commercial and Industrial | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Number of loans classified as TDR | loans | 2 | 5 | 2 | 2 | 5 | |||||
Non-accrual [Member] | Private banking | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Number of loans classified as TDR | loans | 1 | 1 | ||||||||
Accruing Interest | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Troubled debt restructurings | $ 474 | $ 510 | $ 474 | $ 474 | $ 510 | |||||
Unused commitments | $ 39 | $ 39 | $ 39 | $ 39 | $ 39 | |||||
Accruing Interest | Commercial and Industrial | ||||||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||||||
Number of loans classified as TDR | loans | 1 | 1 | 1 | 1 | 1 |
Allowance for Loan Losses - Cre
Allowance for Loan Losses - Credit Quality Indicator (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | $ 2,997,309 | $ 2,841,284 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 573,733 | 634,232 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 988,031 | 862,188 |
Private Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,435,545 | 1,344,864 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,940,662 | 2,786,770 |
Pass | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 520,589 | 585,561 |
Pass | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 985,119 | 858,396 |
Pass | Private Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,434,954 | 1,342,813 |
Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 24,465 | 32,743 |
Special mention | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 24,465 | 31,863 |
Special mention | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 880 |
Special mention | Private Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | 0 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 32,182 | 20,798 |
Substandard | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 28,679 | 15,835 |
Substandard | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,912 | 2,912 |
Substandard | Private Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | $ 591 | 2,051 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 973 | |
Doubtful | Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 973 | |
Doubtful | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 0 | |
Doubtful | Private Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | $ 0 |
Allowance for Loan Losses - Cha
Allowance for Loan Losses - Changes in Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | $ 18,546 | $ 21,205 | $ 17,974 | $ 20,273 |
Provision for loan losses | 80 | 185 | 202 | 1,110 |
Charge-offs | (1,543) | 0 | (1,543) | 0 |
Recoveries | 132 | 17 | 582 | 24 |
Balance, end of period | 17,215 | 21,407 | 17,215 | 21,407 |
Commercial and Industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 11,464 | 14,191 | 11,064 | 13,501 |
Provision for loan losses | 788 | 426 | 738 | 1,109 |
Charge-offs | (1,543) | 0 | (1,543) | 0 |
Recoveries | 132 | 4 | 582 | 11 |
Balance, end of period | 10,841 | 14,621 | 10,841 | 14,621 |
Commercial Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 5,666 | 4,973 | 5,344 | 4,755 |
Provision for loan losses | (794) | (224) | (472) | (6) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 4,872 | 4,749 | 4,872 | 4,749 |
Private Banking | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 1,416 | 2,041 | 1,566 | 2,017 |
Provision for loan losses | 86 | (17) | (64) | 7 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 13 | 0 | 13 |
Balance, end of period | $ 1,502 | $ 2,037 | $ 1,502 | $ 2,037 |
Allowance for Loan Losses - Ana
Allowance for Loan Losses - Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | $ 3,136 | $ 5,319 |
Current | 2,994,173 | 2,835,965 |
Loans held-for-investment, net of deferred fees | 2,997,309 | 2,841,284 |
Commercial and Industrial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 976 |
Current | 573,733 | 633,256 |
Loans held-for-investment, net of deferred fees | 573,733 | 634,232 |
Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 2,912 | 2,912 |
Current | 985,119 | 859,276 |
Loans held-for-investment, net of deferred fees | 988,031 | 862,188 |
Private Banking | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 224 | 1,431 |
Current | 1,435,321 | 1,343,433 |
Loans held-for-investment, net of deferred fees | 1,435,545 | 1,344,864 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial and Industrial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Private Banking | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial and Industrial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Private Banking | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 3,136 | 5,319 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial and Industrial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 976 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 2,912 | 2,912 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Private Banking | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | $ 224 | $ 1,431 |
Allowance for Loan Losses - Imp
Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Recorded Investment | ||
With a related allowance | $ 10,977 | $ 12,542 |
Without a related allowance | 8,645 | 4,628 |
Total | 19,622 | 17,170 |
Unpaid Principal Balance | ||
With a related allowance | 11,413 | 20,068 |
Without a related allowance | 20,269 | 12,304 |
Total | 31,682 | 32,372 |
Related Allowance | 4,230 | 4,545 |
Average Recorded Investment | ||
With a related allowance | 8,903 | 16,155 |
Without a related allowance | 10,030 | 5,148 |
Total | 18,933 | 21,303 |
Interest Income Recognized | ||
With a related allowance | 0 | 0 |
Without a related allowance | 13 | 29 |
Total | 13 | 29 |
Commercial and Industrial | ||
Recorded Investment | ||
With a related allowance | 10,397 | 11,797 |
Without a related allowance | 5,733 | 513 |
Total | 16,130 | 12,310 |
Unpaid Principal Balance | ||
With a related allowance | 10,703 | 19,204 |
Without a related allowance | 11,202 | 1,789 |
Total | 21,905 | 20,993 |
Related Allowance | 3,650 | 3,800 |
Average Recorded Investment | ||
With a related allowance | 8,262 | 15,331 |
Without a related allowance | 7,118 | 838 |
Total | 15,380 | 16,169 |
Interest Income Recognized | ||
With a related allowance | 0 | 0 |
Without a related allowance | 13 | 29 |
Total | 13 | 29 |
Commercial Real Estate | ||
Recorded Investment | ||
With a related allowance | 0 | 0 |
Without a related allowance | 2,912 | 2,912 |
Total | 2,912 | 2,912 |
Unpaid Principal Balance | ||
With a related allowance | 0 | 0 |
Without a related allowance | 9,067 | 9,067 |
Total | 9,067 | 9,067 |
Related Allowance | 0 | 0 |
Average Recorded Investment | ||
With a related allowance | 0 | 0 |
Without a related allowance | 2,912 | 3,108 |
Total | 2,912 | 3,108 |
Interest Income Recognized | ||
With a related allowance | 0 | 0 |
Without a related allowance | 0 | 0 |
Total | 0 | 0 |
Private Banking | ||
Recorded Investment | ||
With a related allowance | 580 | 745 |
Without a related allowance | 0 | 1,203 |
Total | 580 | 1,948 |
Unpaid Principal Balance | ||
With a related allowance | 710 | 864 |
Without a related allowance | 0 | 1,448 |
Total | 710 | 2,312 |
Related Allowance | 580 | 745 |
Average Recorded Investment | ||
With a related allowance | 641 | 824 |
Without a related allowance | 0 | 1,202 |
Total | 641 | 2,026 |
Interest Income Recognized | ||
With a related allowance | 0 | 0 |
Without a related allowance | 0 | 0 |
Total | $ 0 | $ 0 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Allowance for loan losses [Abstract] | ||
Individually evaluated for impairment | $ 4,230 | $ 4,545 |
Collectively evaluated for impairment | 12,985 | 13,429 |
Total allowance for loan losses | 17,215 | 17,974 |
Portfolio loans [Abstract] | ||
Individually evaluated for impairment | 19,622 | 17,170 |
Collectively evaluated for impairment | 2,977,687 | 2,824,114 |
Loans held-for-investment, net of deferred fees | 2,997,309 | 2,841,284 |
Commercial and Industrial | ||
Allowance for loan losses [Abstract] | ||
Individually evaluated for impairment | 3,650 | 3,800 |
Collectively evaluated for impairment | 7,191 | 7,264 |
Total allowance for loan losses | 10,841 | 11,064 |
Portfolio loans [Abstract] | ||
Individually evaluated for impairment | 16,130 | 12,310 |
Collectively evaluated for impairment | 557,603 | 621,922 |
Loans held-for-investment, net of deferred fees | 573,733 | 634,232 |
Commercial Real Estate | ||
Allowance for loan losses [Abstract] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 4,872 | 5,344 |
Total allowance for loan losses | 4,872 | 5,344 |
Portfolio loans [Abstract] | ||
Individually evaluated for impairment | 2,912 | 2,912 |
Collectively evaluated for impairment | 985,119 | 859,276 |
Loans held-for-investment, net of deferred fees | 988,031 | 862,188 |
Private Banking | ||
Allowance for loan losses [Abstract] | ||
Individually evaluated for impairment | 580 | 745 |
Collectively evaluated for impairment | 922 | 821 |
Total allowance for loan losses | 1,502 | 1,566 |
Portfolio loans [Abstract] | ||
Individually evaluated for impairment | 580 | 1,948 |
Collectively evaluated for impairment | 1,434,965 | 1,342,916 |
Loans held-for-investment, net of deferred fees | $ 1,435,545 | $ 1,344,864 |
Allowance for Loan Losses - Tro
Allowance for Loan Losses - Troubled Debt Restructuring (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | $ 9,397 | $ 13,404 |
Accruing Interest | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | 474 | 510 |
Non-accrual | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructurings | $ 8,923 | $ 12,894 |
Allowance for Loan Losses - Mod
Allowance for Loan Losses - Modifications (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015USD ($)loans | Jun. 30, 2015USD ($)loans | |
Financing Receivable, Modifications [Line Items] | ||
Count | loans | 1 | 4 |
Recorded Investment at the time of Modification | $ 4,064 | $ 11,346 |
Current Recorded Investment | 4,021 | 8,516 |
Financing Receivable, Modifications, Pre-Modification, Allowance for Credit Losses | 400 | 2,333 |
Financing Receivable, Modifications, Post-Modification, Allowance for Credit Losses | $ 0 | $ 3,353 |
Commercial and Industrial [Member] | Change in Interest Terms [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Count | loans | 1 | 1 |
Recorded Investment at the time of Modification | $ 4,064 | $ 4,064 |
Current Recorded Investment | 4,021 | 4,021 |
Financing Receivable, Modifications, Pre-Modification, Allowance for Credit Losses | 400 | 400 |
Financing Receivable, Modifications, Post-Modification, Allowance for Credit Losses | $ 0 | $ 0 |
Commercial and Industrial [Member] | Extended Term and Deferred Principal [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Count | loans | 1 | |
Recorded Investment at the time of Modification | $ 433 | |
Current Recorded Investment | 0 | |
Financing Receivable, Modifications, Pre-Modification, Allowance for Credit Losses | 433 | |
Financing Receivable, Modifications, Post-Modification, Allowance for Credit Losses | $ 0 | |
Commercial and Industrial [Member] | Deferred principal | ||
Financing Receivable, Modifications [Line Items] | ||
Count | loans | 2 | |
Recorded Investment at the time of Modification | $ 6,849 | |
Current Recorded Investment | 4,495 | |
Financing Receivable, Modifications, Pre-Modification, Allowance for Credit Losses | 1,500 | |
Financing Receivable, Modifications, Post-Modification, Allowance for Credit Losses | $ 3,353 |
Goodwill and Other Intangible58
Goodwill and Other Intangibles Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 38,724 | $ 34,163 | $ 38,724 | $ 34,163 | $ 34,163 | $ 34,163 |
Goodwill, Acquired During Period | 4,561 | 0 | ||||
Total Intangible Assets, Net | 29,410 | 17,432 | 29,410 | 17,432 | 16,653 | $ 18,211 |
Finite-lived Intangible Assets Acquired | 13,585 | 0 | ||||
Amortization of Intangible Assets | (438) | $ (390) | (828) | $ (779) | ||
Finite-Lived Intangible Assets, Gross | 23,795 | 23,795 | 19,510 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (3,685) | (3,685) | (2,857) | |||
Intangible Assets, Gross (Excluding Goodwill) | 33,095 | 33,095 | 19,510 | |||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 1,851 | 1,851 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,845 | 1,845 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,832 | 1,832 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,816 | 1,816 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,734 | 1,734 | ||||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 11,032 | 11,032 | ||||
Finite-Lived Intangible Assets, Net | 20,110 | 20,110 | 16,653 | |||
Mutual Fund client list [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 9,300 | 9,300 | 0 | |||
Trade Names [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | 4,040 | 4,040 | 1,190 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (158) | (158) | (109) | |||
Finite-Lived Intangible Assets, Net | 3,882 | 3,882 | 1,081 | |||
Sub-advisory client list [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | 11,530 | 11,530 | 11,200 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (1,941) | (1,941) | (1,521) | |||
Finite-Lived Intangible Assets, Net | 9,589 | 9,589 | 9,679 | |||
Separate Managed Accounts Client List [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | 1,810 | 1,810 | 1,095 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (264) | (264) | (201) | |||
Finite-Lived Intangible Assets, Net | 1,546 | 1,546 | 894 | |||
Other Institutional Client List [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | 5,950 | 5,950 | 5,950 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (1,262) | (1,262) | (992) | |||
Finite-Lived Intangible Assets, Net | 4,688 | 4,688 | 4,958 | |||
Noncompete Agreements [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-Lived Intangible Assets, Gross | 465 | 465 | 75 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | (60) | (60) | (34) | |||
Finite-Lived Intangible Assets, Net | $ 405 | $ 405 | $ 41 |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits by Type (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Interest Rate Range Domestic Deposit Liabilities [Abstract] | ||
Interest-bearing checking accounts, minimum | 0.05% | |
Interest-bearing checking accounts, maximum | 0.60% | |
Money market deposit accounts, minimum | 0.05% | |
Money market deposit accounts, maximum | 1.50% | |
Time deposits, minimum | 0.05% | |
Time deposits, maximum | 1.44% | |
Weighted Average Rate Domestic Deposit Liabilities [Abstract] | ||
Interest-bearing checking accounts | 0.49% | 0.42% |
Money market deposit accounts | 0.70% | 0.50% |
Time deposits | 0.87% | 0.78% |
Average rate paid on interest-bearing accounts | 0.74% | 0.60% |
Domestic Deposit Liabilities, Demand and Savings Accounts [Abstract] | ||
Noninterest-bearing checking accounts | $ 160,538 | $ 159,859 |
Interest-bearing checking accounts | 181,318 | 136,037 |
Money market deposit accounts | 1,657,272 | 1,464,279 |
Total demand and savings accounts | 1,999,128 | 1,760,175 |
Time deposits | 889,064 | 929,669 |
Total deposit balance | $ 2,888,192 | $ 2,689,844 |
Deposits - Contractual Maturiti
Deposits - Contractual Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Time Deposits, Rolling Year Maturity [Abstract] | ||
12 months or less | $ 708,279 | $ 645,004 |
12 months to 24 months | 156,101 | 219,333 |
24 months to 36 months | 24,684 | 65,332 |
36 months to 48 months | 0 | 0 |
48 months to 60 months | 0 | 0 |
Over 60 months | 0 | 0 |
Total | $ 889,064 | $ 929,669 |
Deposits - Interest Expense on
Deposits - Interest Expense on Deposits by Deposit Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest Expense, Deposits [Abstract] | ||||
Interest-bearing checking accounts | $ 154 | $ 99 | $ 307 | $ 219 |
Money market deposit accounts | 2,622 | 1,336 | 4,829 | 2,556 |
Time deposits | 1,827 | 1,741 | 3,605 | 3,293 |
Total interest expense on deposits | $ 4,603 | $ 3,176 | $ 8,741 | $ 6,068 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
Brokered deposits | $ 1,060 | $ 1,050 |
Certificate of Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS), brokered | 470 | 496.5 |
Time deposits, $100,000 or more, excluding brokered certificates of deposit | 373.9 | 409.2 |
Time Deposits 250,000 or more | $ 150.8 | $ 142.7 |
Borrowings (Details)
Borrowings (Details) - USD ($) | Jun. 30, 2014 | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Ending Balance | $ 259,409,000 | $ 254,308,000 | |
Federal Home Loan Bank [Member] | |||
Debt Instrument [Line Items] | |||
Bond security pledged as collateral, fair value | 5,800,000 | ||
Federal Home Loan Bank [Member] | Subsidiaries [Member] | |||
Debt Instrument [Line Items] | |||
Bond security pledged as collateral, fair value | 5,800,000 | ||
Loans pledged as collateral | 774,000,000 | ||
Federal Home Loan Bank [Member] | Subsidiaries [Member] | Line of credit | |||
Debt Instrument [Line Items] | |||
Borrowing capacity | 554,800,000 | ||
M&T Bank [Member] | Subsidiaries [Member] | Line of credit | |||
Debt Instrument [Line Items] | |||
Borrowing capacity | 10,000,000 | ||
Texas Capital Bank [Member] | Line of credit | |||
Debt Instrument [Line Items] | |||
Borrowing capacity | 25,000,000 | ||
Texas Capital Bank [Member] | Subsidiaries [Member] | Line of credit | |||
Debt Instrument [Line Items] | |||
Borrowing capacity | $ 20,000,000 | ||
Subordinated Debt [Member] | Subordinated Notes Payable 5.75 Percent | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.75% | 5.75% | 5.75% |
Long-term Debt | $ 35,000,000 | $ 34,409,000 | $ 34,308,000 |
Term | 5 years | ||
Deferred Finance Costs, Net | 591,000 | 692,000 | |
Federal Home Loan Bank Advances [Member] | Subsidiaries [Member] | |||
Debt Instrument [Line Items] | |||
Short-term Debt | $ 225,000,000 | $ 220,000,000 | |
Federal Home Loan Bank Advances [Member] | Federal Home Loan Bank Borrowings, Issued 6/30/2016, Maturity 7/1/2016 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 0.51% | ||
Short-term Debt | $ 75,000,000 | ||
Federal Home Loan Bank Advances [Member] | Federal Home Loan Bank Borrowings, Issued 6/29/2016, Maturity 9/29/2016 [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 0.66% | ||
Short-term Debt | $ 100,000,000 | ||
Federal Home Loan Bank Advances [Member] | Federal Home Loan Bank Borrowings, Issued 12/31/15, Maturity 1/4/2016 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 0.51% | ||
Short-term Debt | $ 170,000,000 | ||
Federal Home Loan Bank Advances [Member] | Federal Home Loan Bank Borrowings, Issued 7/29/2015, Maturity 8/4/2016 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 0.61% | 0.61% | |
Short-term Debt | $ 25,000,000 | $ 25,000,000 | |
Federal Home Loan Bank Advances [Member] | Federal Home Loan Bank Borrowings, Issued 7/29/2015, Maturity 11/3/2016 [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 0.72% | 0.72% | |
Short-term Debt | $ 25,000,000 | $ 25,000,000 |
Regulatory Capital - Regulatory
Regulatory Capital - Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Total risk-based capital (Amount) | ||
Actual Capital | $ 321,170 | $ 326,378 |
Capital Required for Capital Adequacy | $ 201,322 | $ 188,176 |
Total risk-based capital (Ratio) | ||
Actual Capital | 12.76% | 13.88% |
Capital Required for Capital Adequacy | 8.00% | 8.00% |
Tier 1 risk-based capital (Amount) | ||
Tier 1 Risk Based Capital | $ 283,157 | $ 287,072 |
Tier 1 Risk Based Capital Required for Capital Adequacy | $ 150,992 | $ 141,132 |
Tier 1 risk-based capital (Ratio) | ||
Tier 1 Risk Based Capital | 11.25% | 12.20% |
Tier 1 Risk Based Capital Required for Capital Adequacy | 6.00% | 6.00% |
Common Equity Tier One Risk Based Capital (Amount) | ||
Common Equity Tier One Risk Based Capital | $ 283,157 | $ 287,072 |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy | $ 113,244 | $ 105,849 |
Common Equity Tier One RIsk Based Capital (Ratio) | ||
Common Equity Tier One Risk Based Capital To Risk Weighted Assets | 11.25% | 12.20% |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% |
Tier 1 leverage (Amount) | ||
Tier 1 Leverage Capital | $ 283,157 | $ 287,072 |
Tier 1 Leverage Capital Required for Capital Adequacy | $ 134,737 | $ 126,932 |
Tier 1 leverage (Ratio) | ||
Tier 1 Leverage Capital | 8.41% | 9.05% |
Tier 1 Leverage Capital Required for Capital Adequacy | 4.00% | 4.00% |
Fully Phased-in Capital Conservation Buffer Required for Capital Adequacy to Risk Weighted Assets | 2.50% | |
One-Year Period Phase-In of Capital Conservation Buffer Required for Capital Adequacy to Risk Weighted Assets | 0.625% | |
Capital Conservation Buffer Phase-in Period | 4 years | |
Subsidiaries [Member] | ||
Total risk-based capital (Amount) | ||
Actual Capital | $ 304,080 | $ 310,624 |
Capital Required for Capital Adequacy | 198,774 | 186,077 |
Capital Required to be Well Capitalized | $ 248,468 | $ 232,596 |
Total risk-based capital (Ratio) | ||
Actual Capital | 12.24% | 13.35% |
Capital Required for Capital Adequacy | 8.00% | 8.00% |
Capital Required to be Well Capitalized | 10.00% | 10.00% |
Tier 1 risk-based capital (Amount) | ||
Tier 1 Risk Based Capital | $ 286,628 | $ 292,234 |
Tier 1 Risk Based Capital Required for Capital Adequacy | 149,081 | 139,558 |
Tier 1 Risk Based Capital Required to be Well Capitalized | $ 198,774 | $ 186,077 |
Tier 1 risk-based capital (Ratio) | ||
Tier 1 Risk Based Capital | 11.54% | 12.56% |
Tier 1 Risk Based Capital Required for Capital Adequacy | 6.00% | 6.00% |
Tier 1 Risk Based Capital Required to be Well Capitalized | 8.00% | 8.00% |
Common Equity Tier One Risk Based Capital (Amount) | ||
Common Equity Tier One Risk Based Capital | $ 286,628 | $ 292,234 |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy | 111,810 | 104,668 |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized | $ 161,504 | $ 151,187 |
Common Equity Tier One RIsk Based Capital (Ratio) | ||
Common Equity Tier One Risk Based Capital To Risk Weighted Assets | 11.54% | 12.56% |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Tier 1 leverage (Amount) | ||
Tier 1 Leverage Capital | $ 286,628 | $ 292,234 |
Tier 1 Leverage Capital Required for Capital Adequacy | 133,752 | 125,870 |
Tier 1 Leverage Capital Required to be Well Capitalized | $ 167,190 | $ 157,338 |
Tier 1 leverage (Ratio) | ||
Tier 1 Leverage Capital | 8.57% | 9.29% |
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) $ in Thousands | Feb. 28, 2013USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) |
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% | ||||
Defined Contribution Plan Eligible to Participate Age | 21 | |||||
Contribution expense | $ 206 | $ 166 | $ 402 | $ 353 | ||
Chief Executive Officer | Supplemental Employee Retirement Plan, Defined Benefit | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Vesting period | 5 years | |||||
Projected monthly payments | $ 25 | |||||
Number of months projected payments paid | 180 months | |||||
Other Postretirement Benefit Expense | 232 | $ 199 | $ 454 | $ 391 | ||
Discount rate | 2.15% | 2.98% | ||||
Liability recorded | $ 2,500 | $ 2,500 | $ 2,100 | |||
Minimum | Chief Executive Officer | Supplemental Employee Retirement Plan, Defined Benefit | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Number of months before commencement | 60 months |
Stock Transactions - Narrative
Stock Transactions - Narrative (Details) - USD ($) | 6 Months Ended | 24 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Jan. 31, 2016 | Oct. 31, 2014 | |
Class of Stock [Line Items] | |||||
Shares repurchased | 257,722 | 1,000,000 | |||
Cost of shares repurchased | $ 3,177,000 | $ 3,158,000 | $ 9,900,000 | ||
Average cost per share (usd per share) | $ 12.33 | $ 9.90 | |||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 10,000,000 | $ 10,000,000 | |||
Stock repurchase program, authorized shares | 1,000,000 | 1,000,000 | |||
Shares repurchased | 257,722 | 321,109 |
Stock Transactions - Shares Out
Stock Transactions - Shares Outstanding Activity (Details) - shares | 6 Months Ended | 24 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Number of Common Shares Outstanding | |||
Purchase of treasury stock (shares) | (257,722) | (1,000,000) | |
Number of Common Shares Outstanding | |||
Number of Common Shares Outstanding | |||
Balance, beginning of period (shares) | 28,056,195 | 28,060,888 | |
Issuance of restricted common stock (shares) | 394,309 | 255,916 | |
Forfeitures of restricted common stock (shares) | (4,000) | 0 | |
Exercise of stock options (shares) | 22,500 | 5,000 | |
Purchase of treasury stock (shares) | (257,722) | (321,109) | |
Balance, ending of period (shares) | 28,211,282 | 28,000,695 | 28,056,195 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income available to common shareholders | $ 6,773 | $ 5,728 | $ 12,616 | $ 10,784 |
Basic shares (in shares) | 27,549,475 | 27,718,226 | 27,601,331 | 27,804,599 |
Non-vested restricted stock - dilutive (in shares) | 180,317 | 48,933 | 147,823 | 26,780 |
Stock options - dilutive (in shares) | 495,612 | 416,889 | 472,728 | 345,131 |
Diluted shares (in shares) | 28,225,404 | 28,184,048 | 28,221,882 | 28,176,510 |
Earnings per common share: | ||||
Basic | $ 0.25 | $ 0.21 | $ 0.46 | $ 0.39 |
Diluted | $ 0.24 | $ 0.20 | $ 0.45 | $ 0.38 |
Anti-dilutive shares (in shares) | 421,661 | 707,893 | 627,893 | 973,393 |
Derivatives and Hedging Activ69
Derivatives and Hedging Activity - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Designated as Hedging Instrument | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | $ 0 | $ 0 |
Designated as Hedging Instrument | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives, fair value | 221 | 229 |
Not Designated as Hedging Instrument | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | 21,292 | 8,662 |
Not Designated as Hedging Instrument | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives, fair value | $ 22,881 | $ 9,363 |
Derivatives and Hedging Activ70
Derivatives and Hedging Activity - Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance (Details) - Interest Rate Swap - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | $ (22) | $ (74) | $ (45) | $ (156) |
Not Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | (385) | 261 | (840) | 44 |
Interest income / expense | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | (23) | (76) | (47) | (158) |
Non-interest income / (expense) | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | 1 | 2 | 2 | 2 |
Non-interest income / (expense) | Not Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | $ (385) | $ 261 | $ (840) | $ 44 |
Derivatives and Hedging Activ71
Derivatives and Hedging Activity - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($)Interest_Rate_Swap | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Interest_Rate_Swap | Jun. 30, 2015USD ($) | |
Derivatives, Fair Value [Line Items] | ||||
Counterparty default losses | $ 0 | $ 0 | ||
Interest Rate Swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Termination value of derivatives, including accrued interest, in a net liability position | $ 23,200 | 23,200 | ||
Collateral already posted amount | 23,200 | 23,200 | ||
Interest Rate Swap | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | (22) | $ (74) | (45) | (156) |
Interest Rate Swap | Designated as Hedging Instrument | Interest income / expense | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | (23) | (76) | (47) | (158) |
Interest Rate Swap | Designated as Hedging Instrument | Non-interest income / (expense) | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | $ 1 | 2 | $ 2 | 2 |
Interest Rate Swap | Not Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Number of interest rate derivatives | Interest_Rate_Swap | 194 | 194 | ||
Derivative, aggregate notional amount | $ 784,100 | $ 784,100 | ||
Amount of gain or (loss) recognized in income on derivative | (385) | 261 | (840) | 44 |
Interest Rate Swap | Not Designated as Hedging Instrument | Non-interest income / (expense) | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain or (loss) recognized in income on derivative | $ (385) | $ 261 | $ (840) | $ 44 |
Fair Value Hedging | Interest Rate Swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Number of interest rate derivatives | Interest_Rate_Swap | 4 | 4 | ||
Derivative, aggregate notional amount | $ 3,000 | $ 3,000 | ||
Cash Flow Hedging [Member] | Interest Rate Swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Number of interest rate derivatives | Interest_Rate_Swap | 2 | 2 | ||
Derivative, aggregate notional amount | $ 100,000 | $ 100,000 | ||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 87 | |||
Maximum Length of Time Hedged in Interest Rate Cash Flow Hedge | 36 months | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (87) |
Disclosures About Fair Value 72
Disclosures About Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Assets, Fair Value Disclosure | $ 205,103 | $ 176,981 |
Financial liabilities: | ||
Total financial liabilities | 23,102 | 9,592 |
Level 1 | ||
Financial assets: | ||
Assets, Fair Value Disclosure | 8,077 | 7,759 |
Financial liabilities: | ||
Total financial liabilities | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Assets, Fair Value Disclosure | 197,026 | 169,222 |
Financial liabilities: | ||
Total financial liabilities | 23,102 | 9,592 |
Level 3 | ||
Financial assets: | ||
Assets, Fair Value Disclosure | 0 | 0 |
Financial liabilities: | ||
Total financial liabilities | 0 | 0 |
Interest Rate Swap | ||
Financial assets: | ||
Interest rate swaps | 21,292 | 8,662 |
Financial liabilities: | ||
Interest rate swaps | 23,102 | 9,592 |
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 | 21,292 | 8,662 |
Financial liabilities: | ||
Interest rate swaps | 23,102 | 9,592 |
Interest Rate Swap | Level 3 | ||
Financial assets: | ||
Interest rate swaps | 0 | 0 |
Financial liabilities: | ||
Interest rate swaps | 0 | 0 |
Corporate bonds | ||
Financial assets: | ||
Investment securities | 63,452 | 43,733 |
Corporate bonds | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Corporate bonds | Level 2 | ||
Financial assets: | ||
Investment securities | 63,452 | 43,733 |
Corporate bonds | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Trust preferred securities | ||
Financial assets: | ||
Investment securities | 16,304 | 16,601 |
Trust preferred securities | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Trust preferred securities | Level 2 | ||
Financial assets: | ||
Investment securities | 16,304 | 16,601 |
Trust preferred securities | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Non-agency mortgage-backed securities | ||
Financial assets: | ||
Investment securities | 5,746 | 5,743 |
Non-agency mortgage-backed securities | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Non-agency mortgage-backed securities | Level 2 | ||
Financial assets: | ||
Investment securities | 5,746 | 5,743 |
Non-agency mortgage-backed securities | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Non-agency collateralized loan obligations | ||
Financial assets: | ||
Investment securities | 11,424 | 11,711 |
Non-agency collateralized loan obligations | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Non-agency collateralized loan obligations | Level 2 | ||
Financial assets: | ||
Investment securities | 11,424 | 11,711 |
Non-agency collateralized loan obligations | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency collateralized mortgage obligations | ||
Financial assets: | ||
Investment securities | 46,862 | 49,371 |
Agency collateralized mortgage obligations | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency collateralized mortgage obligations | Level 2 | ||
Financial assets: | ||
Investment securities | 46,862 | 49,371 |
Agency collateralized mortgage obligations | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency mortgage-backed securities | ||
Financial assets: | ||
Investment securities | 27,296 | 28,669 |
Agency mortgage-backed securities | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency mortgage-backed securities | Level 2 | ||
Financial assets: | ||
Investment securities | 27,296 | 28,669 |
Agency mortgage-backed securities | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency debentures | ||
Financial assets: | ||
Investment securities | 4,650 | 4,732 |
Agency debentures | Level 1 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Agency debentures | Level 2 | ||
Financial assets: | ||
Investment securities | 4,650 | 4,732 |
Agency debentures | Level 3 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Equity securities | ||
Financial assets: | ||
Investment securities | 8,077 | 7,759 |
Equity securities | Level 1 | ||
Financial assets: | ||
Investment securities | 8,077 | 7,759 |
Equity securities | Level 2 | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Equity securities | Level 3 | ||
Financial assets: | ||
Investment securities | $ 0 | $ 0 |
Disclosures About Fair Value 73
Disclosures About Fair Value of Financial Instruments - Fair Value Measurements, Nonrecurring (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Level 3 | ||
Financial assets: | ||
Other Real Estate Owned, Fair Value Disclosure | $ 1,730 | $ 1,730 |
Fair Value, Measurements, Nonrecurring | ||
Financial assets: | ||
Loans measured for impairment, net | 12,005 | 12,625 |
Other Real Estate Owned, Fair Value Disclosure | 1,730 | 1,730 |
Total assets | 13,735 | 14,355 |
Fair Value, Measurements, Nonrecurring | Level 1 | ||
Financial assets: | ||
Loans measured for impairment, net | 0 | 0 |
Other Real Estate Owned, Fair Value Disclosure | 0 | 0 |
Total assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | ||
Financial assets: | ||
Loans measured for impairment, net | 0 | 0 |
Other Real Estate Owned, Fair Value Disclosure | 0 | 0 |
Total assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Financial assets: | ||
Loans measured for impairment, net | 12,005 | 12,625 |
Other Real Estate Owned, Fair Value Disclosure | 1,730 | 1,730 |
Total assets | $ 13,735 | $ 14,355 |
Disclosures About Fair Value 74
Disclosures About Fair Value of Financial Instruments - Fair Value Inputs, Assets, Quantitative Information (Details) - Level 3 - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Loans measured for impairment | Appraisal value | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total financial assets | $ 5,428 | |
Fair Value Inputs [Abstract] | ||
Discount due to salability conditions or lack of market data | 14.00% | |
Loans measured for impairment | Discounted Cash Flow | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total financial assets | $ 12,005 | $ 7,197 |
Fair Value Inputs [Abstract] | ||
Discount due to salability conditions or lack of market data | 7.00% | 7.00% |
Other real estate owned | Appraisal value | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total financial assets | $ 1,730 | $ 1,730 |
Fair Value Inputs [Abstract] | ||
Discount due to salability conditions or lack of market data | 10.00% | 10.00% |
Disclosures About Fair Value 75
Disclosures About Fair Value of Financial Instruments - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Investment securities available-for-sale: debt | $ 175,734 | |
Investment securities held-to-maturity | 45,931 | $ 48,099 |
Investment management fees receivable | 7,674 | 6,191 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 114,297 | 96,676 |
Investment securities available-for-sale: equity | 8,077 | 7,759 |
Level 1 | Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 114,297 | 96,676 |
Investment securities available-for-sale: equity | 8,077 | 7,759 |
Level 2 | ||
Financial assets: | ||
Investment securities available-for-sale: debt | 175,734 | 160,560 |
Investment securities held-to-maturity | 45,931 | 48,099 |
Federal Home Loan Bank stock | 13,632 | 9,802 |
Accrued interest receivable | 7,774 | 7,056 |
Investment management fees receivable | 7,674 | 6,191 |
Bank owned life insurance | 60,905 | 60,019 |
Interest rate swaps | 21,292 | 8,662 |
Financial liabilities: | ||
Deposits | 2,889,349 | 2,690,693 |
Borrowings | 260,353 | 255,179 |
Interest rate swaps | 23,102 | 9,592 |
Level 2 | Carrying Amount | ||
Financial assets: | ||
Investment securities available-for-sale: debt | 175,734 | 160,560 |
Investment securities held-to-maturity | 44,774 | 47,290 |
Federal Home Loan Bank stock | 13,632 | 9,802 |
Accrued interest receivable | 7,774 | 7,056 |
Investment management fees receivable | 7,674 | 6,191 |
Bank owned life insurance | 60,905 | 60,019 |
Interest rate swaps | 21,292 | 8,662 |
Financial liabilities: | ||
Deposits | 2,888,192 | 2,689,844 |
Borrowings | 259,409 | 254,308 |
Interest rate swaps | 23,102 | 9,592 |
Level 3 | ||
Financial assets: | ||
Loans held-for-investment, net | 2,980,674 | 2,813,278 |
Other Real Estate Owned, Fair Value Disclosure | 1,730 | 1,730 |
Financial liabilities: | ||
Accrued Acquisition Earnout Liability, Fair Value Disclosure | 3,687 | 0 |
Level 3 | Carrying Amount | ||
Financial assets: | ||
Loans held-for-investment, net | 2,980,094 | 2,823,310 |
Other Real Estate Owned, Fair Value Disclosure | 1,730 | 1,730 |
Financial liabilities: | ||
Accrued Acquisition Earnout Liability, Fair Value Disclosure | $ 3,687 | $ 0 |
Disclosures About Fair Value 76
Disclosures About Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Specific allowance for loan losses | $ 4,230 | $ 4,545 |
Changes in Accumulated Other 77
Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | $ (2,094) | $ (345) | $ (1,443) | $ (627) |
Change in unrealized holding gains (losses) | 1,058 | 130 | 408 | 423 |
Gains reclassified from other comprehensive income (loss) | (40) | 0 | (41) | (11) |
Other comprehensive income | 1,018 | 130 | 367 | 412 |
Balance, end of period | (1,076) | (215) | (1,076) | (215) |
Net gain (loss) on sale and call of investment securities | 62 | 0 | 63 | 17 |
Income tax expense | 3,356 | 2,754 | 6,677 | 5,185 |
Unrealized Gains and Losses on Investment Securities | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | (2,094) | (345) | (1,443) | (627) |
Change in unrealized holding gains (losses) | 1,114 | 130 | 464 | 423 |
Gains reclassified from other comprehensive income (loss) | (40) | 0 | (41) | (11) |
Other comprehensive income | 1,074 | 130 | 423 | 412 |
Balance, end of period | (1,020) | (215) | (1,020) | (215) |
Unrealized Gains and Losses on Investment Securities | Reclassification Out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Net gain (loss) on sale and call of investment securities | 62 | 0 | 63 | 17 |
Income tax expense | 22 | 0 | 22 | 6 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Change in unrealized holding gains (losses) | (56) | 0 | (56) | 0 |
Gains reclassified from other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Other comprehensive income | (56) | 0 | (56) | 0 |
Balance, end of period | $ (56) | $ 0 | $ (56) | $ 0 |
Segments (Details)
Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Assets | $ 3,528,591 | $ 3,528,591 | $ 3,302,171 | ||
Income statement data: | |||||
Interest income | 23,795 | $ 20,481 | 47,155 | $ 40,683 | |
Interest expense | 5,576 | 3,808 | 10,559 | 7,347 | |
Net interest income (loss) | 18,219 | 16,673 | 36,596 | 33,336 | |
Provision for loan losses | 80 | 185 | 202 | 1,110 | |
Net interest income after provision for loan losses | 18,139 | 16,488 | 36,394 | 32,226 | |
Non-interest income: | |||||
Investment management fees | 9,462 | 7,514 | 16,481 | 15,169 | |
Net gain on the sale and call of investment securities | 62 | 0 | 63 | 17 | |
Other non-interest income | 1,923 | 2,062 | 3,818 | 3,241 | |
Total non-interest income | 11,447 | 9,576 | 20,362 | 18,427 | |
Non-interest expense: | |||||
Intangible amortization expense | 438 | 390 | 828 | 779 | |
Other operating expenses | 19,019 | 17,192 | 36,635 | 33,905 | |
Total non-interest expense | 19,457 | 17,582 | 37,463 | 34,684 | |
Income before tax | 10,129 | 8,482 | 19,293 | 15,969 | |
Income tax expense (benefit) | 3,356 | 2,754 | 6,677 | 5,185 | |
Net income | 6,773 | 5,728 | 12,616 | 10,784 | |
Parent and other | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 4,138 | 4,138 | (101) | ||
Income statement data: | |||||
Interest income | 65 | 52 | 138 | 106 | |
Interest expense | 551 | 549 | 1,102 | 1,088 | |
Net interest income (loss) | (486) | (497) | (964) | (982) | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for loan losses | (486) | (497) | (964) | (982) | |
Non-interest income: | |||||
Investment management fees | (55) | (42) | (109) | (89) | |
Net gain on the sale and call of investment securities | 0 | 0 | 0 | 0 | |
Other non-interest income | 0 | 0 | 0 | 0 | |
Total non-interest income | (55) | (42) | (109) | (89) | |
Non-interest expense: | |||||
Intangible amortization expense | 0 | 0 | 0 | 0 | |
Other operating expenses | 37 | 5 | 35 | (33) | |
Total non-interest expense | 37 | 5 | 35 | (33) | |
Income before tax | (578) | (544) | (1,108) | (1,038) | |
Income tax expense (benefit) | (223) | (170) | (424) | (324) | |
Net income | (355) | (374) | (684) | (714) | |
Bank | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 3,441,794 | 3,441,794 | 3,236,756 | ||
Income statement data: | |||||
Interest income | 23,730 | 20,429 | 47,017 | 40,577 | |
Interest expense | 5,025 | 3,259 | 9,457 | 6,259 | |
Net interest income (loss) | 18,705 | 17,170 | 37,560 | 34,318 | |
Provision for loan losses | 80 | 185 | 202 | 1,110 | |
Net interest income after provision for loan losses | 18,625 | 16,985 | 37,358 | 33,208 | |
Non-interest income: | |||||
Investment management fees | 0 | 0 | 0 | 0 | |
Net gain on the sale and call of investment securities | 62 | 0 | 63 | 17 | |
Other non-interest income | 1,922 | 2,062 | 3,817 | 3,240 | |
Total non-interest income | 1,984 | 2,062 | 3,880 | 3,257 | |
Non-interest expense: | |||||
Intangible amortization expense | 0 | 0 | 0 | 0 | |
Other operating expenses | 12,299 | 11,690 | 24,623 | 22,943 | |
Total non-interest expense | 12,299 | 11,690 | 24,623 | 22,943 | |
Income before tax | 8,310 | 7,357 | 16,615 | 13,522 | |
Income tax expense (benefit) | 2,662 | 2,291 | 5,653 | 4,188 | |
Net income | 5,648 | 5,066 | 10,962 | 9,334 | |
Investment management | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 82,659 | 82,659 | $ 65,516 | ||
Income statement data: | |||||
Interest income | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net interest income (loss) | 0 | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for loan losses | 0 | 0 | 0 | 0 | |
Non-interest income: | |||||
Investment management fees | 9,517 | 7,556 | 16,590 | 15,258 | |
Net gain on the sale and call of investment securities | 0 | 0 | 0 | 0 | |
Other non-interest income | 1 | 0 | 1 | 1 | |
Total non-interest income | 9,518 | 7,556 | 16,591 | 15,259 | |
Non-interest expense: | |||||
Intangible amortization expense | 438 | 390 | 828 | 779 | |
Other operating expenses | 6,683 | 5,497 | 11,977 | 10,995 | |
Total non-interest expense | 7,121 | 5,887 | 12,805 | 11,774 | |
Income before tax | 2,397 | 1,669 | 3,786 | 3,485 | |
Income tax expense (benefit) | 917 | 633 | 1,448 | 1,321 | |
Net income | $ 1,480 | $ 1,036 | $ 2,338 | $ 2,164 |