Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | TriState Capital Holdings, Inc. | ||
Entity Central Index Key | 1,380,846 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 29,291,798 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 632,518,127 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash | $ 367 | $ 380 |
Interest-earning deposits with other institutions | 183,625 | 140,975 |
Federal funds sold | 5,993 | 14,798 |
Cash and cash equivalents | 189,985 | 156,153 |
Debt securities available-for-sale, at fair value | 233,296 | 138,850 |
Debt securities held-to-maturity, at cost | 196,131 | 59,275 |
Equity securities, at fair value | 12,661 | 8,635 |
Federal Home Loan Bank stock | 24,671 | 13,792 |
Total investment securities | 466,759 | 220,552 |
Loans held-for-investment | 5,132,873 | 4,184,244 |
Allowance for loan losses | (13,208) | (14,417) |
Loans held-for-investment, net | 5,119,665 | 4,169,827 |
Accrued interest receivable | 20,702 | 13,519 |
Investment management fees receivable, net | 7,299 | 7,720 |
Goodwill and other intangibles, net | 67,863 | 65,358 |
Office properties and equipment, net | 5,126 | 4,885 |
Bank owned life insurance | 68,309 | 66,593 |
Prepaid expenses and other assets | 89,947 | 73,290 |
Total assets | 6,035,655 | 4,777,897 |
Liabilities: | ||
Deposits | 5,050,461 | 3,987,611 |
Borrowings, net | 404,166 | 335,913 |
Accrued interest payable on deposits and borrowings | 5,204 | 2,499 |
Deferred tax liability, net | 3,513 | 4,152 |
Acquisition earn out liability | 2,920 | 0 |
Other accrued expenses and other liabilities | 90,037 | 58,651 |
Total liabilities | 5,556,301 | 4,388,826 |
Shareholders’ Equity: | ||
Preferred stock, no par value; Shares authorized - 150,000; Series A shares issued and outstanding - 40,250 and 0, respectively | 38,468 | 0 |
Common stock, no par value; Shares authorized - 45,000,000; Shares issued - 30,893,584 and 30,342,471, respectively; Shares outstanding - 28,878,674 and 28,591,101, respectively | 293,355 | 289,507 |
Additional paid-in capital | 15,364 | 10,290 |
Retained earnings | 164,009 | 111,732 |
Accumulated other comprehensive income (loss), net | (1,331) | 1,246 |
Treasury stock (2,014,910 and 1,751,370 shares, respectively) | (30,511) | (23,704) |
Total shareholders’ equity | 479,354 | 389,071 |
Total liabilities and shareholders’ equity | $ 6,035,655 | $ 4,777,897 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Shares Authorized (in shares) | 150,000 | 150,000 |
Preferred Stock, Shares Issued (in shares) | 40,250 | 0 |
Preferred Stock, Shares Outstanding (in shares) | 40,250 | 0 |
Common Stock, Shares Authorized (in shares) | 45,000,000 | 45,000,000 |
Common Stock, Shares Issued (in shares) | 30,893,584 | 30,342,471 |
Common Stock, Shares Outstanding (in shares) | 28,878,674 | 28,591,101 |
Treasury Stock, Shares (in shares) | 2,014,910 | 1,751,370 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income: | |||
Loans | $ 185,349 | $ 126,544 | $ 92,252 |
Investments | 10,683 | 6,217 | 5,443 |
Interest-earning deposits | 3,754 | 1,534 | 617 |
Total interest income | 199,786 | 134,295 | 98,312 |
Interest expense: | |||
Deposits | 78,493 | 37,485 | 19,807 |
Borrowings | 7,889 | 5,457 | 3,692 |
Total interest expense | 86,382 | 42,942 | 23,499 |
Net interest income | 113,404 | 91,353 | 74,813 |
Provision (credit) for loan losses | (205) | (623) | 838 |
Net interest income after provision for loan losses | 113,609 | 91,976 | 73,975 |
Non-interest income: | |||
Net gain (loss) on the sale and call of debt securities | (70) | 310 | 77 |
Bank owned life insurance income | 1,716 | 1,778 | 1,796 |
Other income (loss) | (668) | 564 | 683 |
Total non-interest income | 47,917 | 46,966 | 46,508 |
Non-interest expense: | |||
Compensation and employee benefits | 64,771 | 59,316 | 54,522 |
Premises and occupancy costs | 5,580 | 5,010 | 4,865 |
Professional fees | 4,729 | 3,873 | 3,850 |
FDIC insurance expense | 4,543 | 4,238 | 3,058 |
General insurance expense | 1,030 | 1,047 | 1,037 |
State capital shares tax | 1,521 | 1,546 | 1,394 |
Travel and entertainment expense | 3,816 | 3,118 | 3,062 |
Data processing expense | 1,565 | 582 | 1,153 |
Charitable contributions | 1,039 | 1,057 | 996 |
Intangible amortization expense | 1,968 | 1,851 | 1,753 |
Change in fair value of acquisition earn out | (218) | 0 | (3,687) |
Other operating expenses | 10,813 | 9,834 | 6,791 |
Total non-interest expense | 101,157 | 91,472 | 78,794 |
Income before tax | 60,369 | 47,470 | 41,689 |
Income tax expense | 5,945 | 9,482 | 13,048 |
Net income | 54,424 | 37,988 | 28,641 |
Preferred stock dividends on Series A | 2,120 | 0 | 0 |
Net income available to common shareholders | $ 52,304 | $ 37,988 | $ 28,641 |
Earnings per common share: | |||
Earnings per common share, basic (in usd per share) | $ 1.90 | $ 1.38 | $ 1.04 |
Earnings per common share, diluted (in usd per share) | $ 1.81 | $ 1.32 | $ 1.01 |
Investment management fees | |||
Non-interest income: | |||
Total non-interest income | $ 37,647 | $ 37,100 | $ 37,035 |
Service charges on deposits | |||
Non-interest income: | |||
Total non-interest income | 570 | 399 | 504 |
Swap fees | |||
Non-interest income: | |||
Total non-interest income | 7,311 | 5,353 | 4,384 |
Commitment and other loan fees | |||
Non-interest income: | |||
Total non-interest income | $ 1,411 | $ 1,462 | $ 2,029 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 54,424 | $ 37,988 | $ 28,641 |
Other comprehensive income (loss): | |||
Unrealized holding gains (losses) on investment securities, net of tax expense (benefit) of $(901), $387 and $674, respectively | (2,913) | 655 | 1,166 |
Reclassification adjustment for losses (gains) included in net income on investment securities, net of tax benefit (expense) of $17, $(109) and $(11), respectively | 53 | (186) | (20) |
Unrealized holding gains on derivatives, net of tax expense of $254, $107 and $650, respectively | 773 | 180 | 1,100 |
Reclassification adjustment for losses (gains) included in net income on derivatives, net of tax benefit (expense) of $(330), $(138) and $16, respectively | (1,050) | (233) | 27 |
Other comprehensive income (loss) | (3,137) | 416 | 2,273 |
Total comprehensive income | $ 51,287 | $ 38,404 | $ 30,914 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Tax expense (benefit) on unrealized holding gains (losses) on investment securities | $ (901) | $ 387 | $ 674 |
Tax benefit (expense) on investment securities losses (gains) reclassified from other comprehensive income | 17 | (109) | (11) |
Tax expense (benefit) on unrealized holding gains (losses) on derivatives | 254 | 107 | 650 |
Tax benefit (expense) on derivative losses (gains) reclassified from other comprehensive income | $ (330) | $ (138) | $ 16 |
Consolidated Statements of Chan
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 | Preferred Stock (Series A)Preferred Stock |
Balance, beginning of period at Dec. 31, 2015 | $ 325,977 | $ 281,412 | $ 10,809 | $ 45,103 | $ (1,443) | $ (9,904) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 28,641 | 28,641 | |||||
Other comprehensive loss | 2,273 | 2,273 | |||||
Exercise of stock options | 2,674 | 4,068 | (1,394) | ||||
Purchase of treasury stock | (5,125) | (5,125) | |||||
Cancellation of stock options | (6,200) | (6,200) | |||||
Stock-based compensation | 3,567 | 3,567 | |||||
Balance, end of period at Dec. 31, 2016 | 351,807 | 285,480 | 6,782 | 73,744 | 830 | (15,029) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 37,988 | 37,988 | |||||
Other comprehensive loss | 416 | 416 | |||||
Exercise of stock options | 1,663 | 4,027 | (2,364) | ||||
Purchase of treasury stock | (8,675) | (8,675) | |||||
Stock-based compensation | 5,872 | 5,872 | |||||
Balance, end of period at Dec. 31, 2017 | 389,071 | 289,507 | 10,290 | 111,732 | 1,246 | (23,704) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Impact of adoption of ASU | ASU 2016-01 | (286) | 286 | |||||
Net income | 54,424 | 54,424 | |||||
Reclassification for certain income tax effects under ASU 2018-02 | ASU 2018-02 | (274) | 274 | |||||
Other comprehensive loss | (3,137) | (3,137) | |||||
Issuance of preferred stock (net of offering costs of $1,782) | 38,468 | 38,468 | |||||
Preferred stock dividend | (2,120) | (2,120) | |||||
Exercise of stock options | 1,667 | 3,848 | (2,181) | ||||
Purchase of treasury stock | (6,807) | (6,807) | |||||
Cancellation of stock options | (945) | (945) | |||||
Stock-based compensation | 8,200 | 8,200 | |||||
Balance, end of period at Dec. 31, 2018 | 479,354 | $ 293,355 | $ 15,364 | 164,009 | (1,331) | $ (30,511) | $ 38,468 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Impact of adoption of ASU | $ 533 | ||||||
Impact of adoption of ASU | ASU 2014-09 | $ 533 | ||||||
Impact of adoption of ASU | ASU 2016-01 | $ 286 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Preferred Stock | Preferred Stock (Series A) | |||
Offering costs | $ 1,782 | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 54,424 | $ 37,988 | $ 28,641 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and intangible amortization expense | 3,509 | 3,366 | 3,077 |
Amortization of deferred financing costs | 203 | 203 | 202 |
Provision (credit) for loan losses | (205) | (623) | 838 |
Net gain on the sale of loans | (19) | (17) | 0 |
Stock-based compensation expense | 8,200 | 5,872 | 3,567 |
Net loss (gain) on the sale or call of debt securities available-for-sale | 73 | (295) | (31) |
Net gain on the call of debt securities held-to-maturity | (3) | (15) | (46) |
Unrealized loss from equity securities | 775 | 0 | 0 |
Income from debt securities trading | 0 | (48) | 0 |
Purchase of debt securities trading | 0 | (9,802) | 0 |
Proceeds from the sale of debt securities trading | 0 | 9,850 | 0 |
Net amortization of premiums and discounts on debt securities | 606 | 919 | 883 |
Decrease (increase) in investment management fees receivable, net | 421 | 29 | (646) |
Increase in accrued interest receivable | (7,183) | (3,905) | (2,558) |
Increase in accrued interest payable | 2,705 | 632 | 105 |
Bank owned life insurance income | (1,716) | (1,778) | (1,796) |
Change in fair value of acquisition earn out | (218) | 0 | (3,687) |
Increase (decrease) in income taxes payable | (9) | 166 | (95) |
Decrease (increase) in prepaid income taxes | 8,369 | (10,222) | (5,438) |
Deferred tax provision | 234 | 11,110 | 3,675 |
Increase (decrease) in accounts payable and other accrued expenses | 9,566 | (1,508) | 3,661 |
Cash received for allowance for leasehold improvements | 0 | 0 | 1,050 |
Other, net | 2,966 | (3,709) | (1,293) |
Net cash provided by operating activities | 82,698 | 38,213 | 30,109 |
Cash flows from investing activities: | |||
Purchase of debt securities available-for-sale | (155,632) | (30,204) | (27,211) |
Purchase of debt securities held-to-maturity | (144,127) | (8,467) | (9,250) |
Purchase of equity securities | (5,224) | (266) | (284) |
Proceeds from the sale of debt securities available-for-sale | 31,306 | 2,527 | 4,691 |
Principal repayments and maturities of debt securities available-for-sale | 25,652 | 55,621 | 17,333 |
Principal repayments and maturities of debt securities held-to-maturity | 7,176 | 3,000 | 2,500 |
Purchase of bank owned life insurance | 0 | 0 | (3,000) |
Investment in low income housing and historic tax credits | (4,834) | (5,502) | (1,625) |
Investment in small business investment companies | (736) | (1,405) | 0 |
Net redemption (purchase) of Federal Home Loan Bank stock | (10,879) | (4,151) | 161 |
Net increase in loans | (956,706) | (793,762) | (564,634) |
Proceeds from loan sales | 7,092 | 6,867 | 1,196 |
Proceeds from the sale of other real estate owned | 0 | 597 | 1,080 |
Additions to office properties and equipment | (1,782) | (929) | (2,937) |
Acquisition, net of cash | (1,335) | 0 | (14,095) |
Net cash used in investing activities | (1,210,029) | (776,074) | (596,075) |
Cash flows from financing activities: | |||
Net increase in deposit accounts | 1,062,850 | 700,832 | 596,935 |
Net increase (decrease) in Federal Home Loan Bank advances | 70,000 | 90,000 | |
Net increase (decrease) in Federal Home Loan Bank advances | (15,000) | ||
Net increase (decrease) in line of credit advances | (1,950) | 6,200 | 0 |
Net proceeds from issuance of preferred stock | 38,468 | 0 | 0 |
Net proceeds from exercise of stock options | 1,667 | 1,663 | 2,674 |
Cancellation of stock options | (945) | 0 | (6,200) |
Purchase of treasury stock | (6,807) | (8,675) | (5,125) |
Dividends paid on preferred stock | (2,120) | 0 | 0 |
Net cash provided by financing activities | 1,161,163 | 790,020 | 573,284 |
Net change in cash and cash equivalents during the period | 33,832 | 52,159 | 7,318 |
Cash and cash equivalents at beginning of the period | 156,153 | 103,994 | 96,676 |
Cash and cash equivalents at end of the period | 189,985 | 156,153 | 103,994 |
Cash paid (received) during the year for: | |||
Interest expense | 83,474 | 42,107 | 23,192 |
Income taxes | (4,331) | 7,266 | 14,823 |
Acquisition of non-cash assets and liabilities: | |||
Assets acquired | 0 | 0 | 1,038 |
Liabilities assumed | 0 | 0 | 1,402 |
Other non-cash activity: | |||
Loan foreclosures and repossessions | 0 | 0 | 3,618 |
Contingent consideration | $ 2,920 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF OPERATION TriState Capital Holdings, Inc. (“we,” “us,” “our,” the “holding company,” the “parent company,” 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 adviser; and Chartwell TSC Securities Corp. (“CTSC Securities”), a registered broker/dealer. The Bank was established to serve the commercial banking needs of middle-market businesses and private banking needs of high-net-worth individuals. Chartwell provides investment management services primarily to institutional investors, mutual funds and individual investors. CTSC Securities supports marketing efforts for the proprietary investment products provided by Chartwell, including shares of mutual funds advised and/or administered by Chartwell. 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 adviser regulated by the Securities and Exchange Commission (“SEC”). CTSC Securities is regulated by the SEC and Financial Industry Regulatory Authority (“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 conducts 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 different than those anticipated in the estimates, which could materially affect the financial results of our operations and financial condition. 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 their evaluation for impairment, and deferred income taxes and its related recoverability, each of which is discussed later in this section. CONSOLIDATION Our 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 (established in 2011 to hold and manage the foreclosed properties for the Bank), after elimination of inter-company accounts and transactions. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) and disclosures, considered necessary for the fair presentation of the accompanying consolidated financial statements, have been included. CASH AND CASH EQUIVALENTS For purposes of reporting cash flows, the Company has defined cash and cash equivalents as cash, interest-earning deposits with other institutions, federal funds sold, and short-term investments that have an original maturity of 90 days or less. 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, which includes an initial measurement of any contingent earn out, and the fair value of the net assets acquired (including identified intangibles) is recorded as goodwill. A change in the initial estimate of any contingent earn out amounts is recorded to non-interest expense in the consolidated statements of income. For additional detail regarding goodwill and other intangible assets, see Note 2 . INVESTMENT SECURITIES The Company’s investments are classified as either: (1) held-to-maturity, which are debt securities that the Company intends to hold until maturity and are reported at amortized cost; (2) trading, which are debt 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 non-interest income; (3) available-for-sale, which are debt 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), on an after-tax basis; or (4) equity securities, which are reported at fair value, with unrealized gains and losses included in non-interest income. The cost of securities sold is determined on a specific identification basis. Amortization of premiums and accretion of discounts are recorded to interest income on investments over the estimated 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 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. For additional detail regarding investment securities, see Note 3 . FEDERAL HOME LOAN BANK STOCK The Company is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh. 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 were recoverable at par value as of December 31, 2018 and 2017 . Cash and stock dividends are reported as interest income on investments in the consolidated statements of income. For additional detail regarding Federal Home Loan Bank stock, see Note 4 . 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 estimated 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 on 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 a 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, at which time the loan is placed on non-accrual status. All accrued and unpaid interest on such loans is then reversed. The 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, such as 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., loans due upon demand) 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. For additional detail regarding loans, see Note 5 . OTHER REAL ESTATE OWNED Real estate owned, other than bank premises, is recorded at fair value less estimated selling costs. 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 other real estate owned (“OREO”) properties. ALLOWANCE FOR LOAN LOSSES The allowance for loan losses is established through provisions for loan losses that are recorded in the consolidated statements of income. Loans are charged off 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. In management’s judgment, the allowance was appropriate to cover probable losses inherent in the loan portfolio as of December 31, 2018 and 2017 . 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 two components of the allowance for loan losses represent estimates of general reserves based upon Accounting Standards Codification (“ASC”) Topic 450, Contingencies; and specific reserves based upon ASC Topic 310, Receivables. ASC Topic 450 applies to homogeneous loan pools such as commercial loans, consumer lines of credit and residential mortgages that are not individually evaluated for impairment. ASC Topic 310 is applied to commercial and consumer loans that are individually evaluated for impairment. In management’s opinion, a loan is impaired, based upon current information and events, 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 of general reserves management considers numerous factors, including historical charge-offs and subsequent recoveries. Management also considers qualitative factors that influence our credit quality, such as delinquency and non-performing loan trends, changes in loan underwriting guidelines and credit policies, and 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. Management bases the computation of the allowance for loan losses of general reserves 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: private banking, commercial and industrial, and commercial real estate. 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. For additional detail regarding allowance for loan losses, see Note 6 . 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 received on a quarterly basis. Certain incremental costs incurred to acquire some of our investment management contracts are deferred and amortized to non-interest expense over the estimated life of the contract. 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. Bad debt expense is recorded to other non-interest expense on the consolidated statements of income and the allowance for uncollectible accounts is recorded to investment management fees receivable, net on the consolidated statements of financial position. 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 $322,000 of bad debt expense associated with a single relationship recorded for the year ended December 31, 2017 , which was charged off. There was no bad debt expense recorded for the years ended December 31, 2018 and 2016 . There was no allowance for uncollectible accounts recorded as of December 31, 2018 and 2017 . GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Goodwill is not amortized and is subject to at least annual assessments for impairment by applying a fair value based test. The Company reviews goodwill annually and again at any quarter-end if a material event occurs during the quarter that may affect goodwill. If goodwill testing is required, an assessment of qualitative factors can be completed before performing the two step goodwill impairment test. If an assessment of qualitative factors determines it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then the two step goodwill impairment test is not required. Goodwill is evaluated for potential impairment by determining if the fair value has fallen below carrying value. Other intangible assets represent purchased assets that may lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. The Company has determined that certain of its acquired mutual fund client relationships meet the criteria to be considered indefinite-lived assets because the Company expects both the renewal of these contracts and the cash flows generated by these assets to continue indefinitely. Accordingly, the Company does not amortize these intangible assets, but instead reviews these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived assets may be impaired. Each reporting period, the Company assesses whether events or circumstances have occurred which indicate that the indefinite life criteria are no longer met. If the indefinite life criteria are no longer met, the Company would assess whether the carrying value of these assets exceeds its fair value, an impairment loss would be recorded in an amount equal to any such excess and these assets would be reclassified to finite-lived. Other intangible assets that the Company has determined to have finite lives, such as trade name, client lists and non-compete agreements are amortized over their estimated useful lives. These finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from four to 25 years. Finite-lived intangibles are evaluated for impairment on an annual basis or more frequently whenever events or circumstances occur indicating that the carrying amount may not be recoverable. For additional detail regarding goodwill and other intangible assets, see Note 7 . OFFICE PROPERTIES AND EQUIPMENT Office properties and equipment are stated at cost less accumulated depreciation. Depreciation is computed utilizing 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 10 years. Repairs and maintenance are charged to expense as incurred, while improvements that extend the useful life are capitalized and depreciated to non-interest 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. For additional detail regarding office properties and equipment, see Note 8 . 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. Interest on deposits is accrued and charged to interest expense daily and is paid or credited in accordance with the terms of the respective accounts. For additional detail regarding deposits, see Note 9 . BORROWINGS The Company records FHLB advances, line of credit borrowings and subordinated notes payable at their principal amount net of debt issuance costs. 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. For additional detail regarding borrowings, see Note 10 . 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. The Company considers uncertain tax positions that it has taken or expects to take on a tax return. Any interest and penalties related to unrecognized tax benefits would be recognized in income tax expense in the consolidated statements of income. For additional detail regarding income taxes, see Note 11 . EARNINGS PER COMMON SHARE Earnings per common share (“EPS”) is computed using the two-class method, where net income is reduced by dividends declared on our preferred stock to derive net income available to common shareholders. Basic 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 upon the exercise of stock options and the vesting of restricted stock awards granted utilizing the treasury stock method. For additional detail regarding earnings per common share, see Note 15 . STOCK-BASED COMPENSATION The Company accounts for its stock-based compensation awards based on estimated fair values of stock-based awards made to employees and directors. Compensation cost for all stock-based payments is based on the estimated grant-date fair value. The value of the portion of the award that is ultimately expected to vest is included in stock-based compensation expense 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. For additional detail regarding stock-based compensation, see Note 16 . DERIVATIVES AND HEDGING ACTIVITIES All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities. 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 (loss). When the cash flows associated with the hedged item are realized, the gain or loss included in accumulated other comprehensive income (loss) is recognized in the consolidated statements of income. The Company also has interest rate 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. For additional detail regarding derivatives and hedging activities, see Note 17 . 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 must be recorded for certain assets and liabilities every reporting period on a recurring basis or, under certain circumstances, on a non-recurring basis. For additional detail regarding fair value measurement, see Note 18 . ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Unrealized holding gains and the non-credit component of unrealized losses on the Company’s debt 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 debt 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 cash flow hedge 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. Income tax effects in accumulated other comprehensive income are released as investments are sold or matured and as liabilities are extinguished. For additional detail regarding accumulated other comprehensive income (loss), see Note 19 . 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 October 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) ASU 2018-16, which adds the Overnight Index Swap (“OIS”) rate based on the Secured Overnight Financing Rate (“SOFR”) as a benchmark interest rate for hedge accounting purposes. Entities that have not yet adopted ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , must adopt ASU 2018-16 concurrent with ASU 2017-12, which is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2018 . Early adoption is permitted, including adoption in an interim period, if an entity has already adopted ASU 2017-12. The adoption of this standard on January 1, 2019 , did not have a material impact on the Company’s consolidated financial statements. In August 2018, FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820),” which aims to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing fair value measurement disclosures. This ASU is effective for all entities for annual and interim periods in fiscal years beginning after December 15, 2019 . Retrospective adoption is required except for the following changes, which are required to be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption: (1) changes in unrealized gains and losses included in other comprehensive income for Level 3 instruments; (2) the range and weighted average of significant unobservable inputs used t |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | BUSINESS COMBINATION On April 6, 2018 , TriState Capital Holdings, Inc., through its wholly owned subsidiary, Chartwell Investment Partners, LLC, completed the acquisition of investment management contracts, select personnel and related assets from Columbia Partners, L.L.C. Investment Management (“Columbia”), totaling approximately $1.07 billion in assets under management (the “Columbia acquisition”). Under the terms of the agreement with Columbia, investment management contracts were acquired for a purchase price consisting of $1.3 million paid in cash at closing based on a multiple of run-rate revenue, plus an earn out. The earn out, which is limited to $3.8 million under the terms of the agreement, will be calculated based on a multiple of run-rate revenue at December 31, 2018. The earn out was estimated at closing to be approximately $3.1 million . The foregoing summary of the 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 agreement. The following table summarizes total consideration at closing and assets acquired in the Columbia acquisition as of April 6, 2018 : (Dollars in thousands) Columbia Acquisition Consideration paid: Cash $ 1,335 Estimated earn out, at closing 3,138 Fair value of total consideration, at closing $ 4,473 Intangible assets acquired 1,537 Goodwill 2,936 Total net assets purchased $ 4,473 During the year ended December 31, 2018 , the fair value of the estimated acquisition earn out was decreased by $218,000 based on management’s final determination of Columbia’s annualized run-rate revenue at December 31, 2018 . This adjustment to the earn out was credited to non-interest expense during the year ended December 31, 2018 . The remaining acquisition earn out liability was $2.9 million as of December 31, 2018 . In connection with the Columbia acquisition, total acquisition-related transaction costs incurred by TriState Capital were not significant. Since the acquisition, the operations acquired in the Columbia acquisition contributed revenues of $1.6 million and approximate earnings of $107,000 , which were included in the consolidated statement of income for the year ended December 31, 2018 . 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 Columbia acquisition as of April 6, 2018 , by class and estimated useful life. (Dollars in thousands) Gross Amount Weighted Average Estimated Useful Life Client Relationships: Sub-advisory client list 115 132 Separate managed accounts client list 1,365 108 Non-compete agreements 57 48 Total finite-lived intangibles $ 1,537 108 The following table presents unaudited pro forma financial information, which combines the historical consolidated statements of income of the Company and the contracts acquired from Columbia to give effect to the acquisition as if it had occurred on January 1, 2017 , for the periods indicated. Pro Forma Years Ended December 31, (Dollars in thousands, except per share data) 2018 2017 Total revenue $ 161,997 $ 140,806 Net income available to common shareholders $ 52,401 $ 38,601 Earnings per common share: Basic $ 1.90 $ 1.40 Diluted $ 1.82 $ 1.34 Total revenue is defined as net interest income and non-interest income, excluding gains and losses on the sale and call of debt securities. Pro forma adjustments include intangible amortization expense and income tax expense. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES Debt securities available-for-sale and held-to-maturity were comprised of the following: December 31, 2018 (Dollars in thousands) Amortized Gross Unrealized Gross Unrealized Estimated Debt securities available-for-sale: Corporate bonds $ 152,691 $ 33 $ 1,661 $ 151,063 Trust preferred securities 17,964 — 1,115 16,849 Non-agency collateralized loan obligations 393 — 3 390 Agency collateralized mortgage obligations 33,680 42 4 33,718 Agency mortgage-backed securities 21,575 37 348 21,264 Agency debentures 9,994 67 49 10,012 Total debt securities available-for-sale 236,297 179 3,180 233,296 Debt securities held-to-maturity: Corporate bonds 27,184 353 22 27,515 Agency debentures 141,575 472 34 142,013 Municipal bonds 22,963 11 61 22,913 Agency mortgage-backed securities 4,409 — 27 4,382 Total debt securities held-to-maturity 196,131 836 144 196,823 Total debt securities $ 432,428 $ 1,015 $ 3,324 $ 430,119 December 31, 2017 (Dollars in thousands) Amortized Gross Unrealized Gross Unrealized Estimated Debt securities available-for-sale: Corporate bonds $ 61,616 $ 216 $ 143 $ 61,689 Trust preferred securities 17,840 741 — 18,581 Non-agency collateralized loan obligations 811 — 6 805 Agency collateralized mortgage obligations 38,873 25 76 38,822 Agency mortgage-backed securities 19,007 96 150 18,953 Total debt securities available-for-sale 138,147 1,078 375 138,850 Debt securities held-to-maturity: Corporate bonds 32,189 785 33 32,941 Agency debentures 1,984 3 — 1,987 Municipal bonds 25,102 122 11 25,213 Total debt securities held-to-maturity 59,275 910 44 60,141 Total debt securities $ 197,422 $ 1,988 $ 419 $ 198,991 Interest income on investment securities was as follows: Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Taxable interest income $ 9,062 $ 4,896 $ 4,213 Non-taxable interest income 420 452 452 Dividend income 1,201 869 778 Total interest income on investments $ 10,683 $ 6,217 $ 5,443 As of December 31, 2018 , the contractual maturities of the debt securities were: December 31, 2018 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Estimated Amortized Estimated Due in one year or less $ 17,187 $ 17,120 $ 2,130 $ 2,129 Due from one to five years 114,241 113,788 52,385 52,419 Due from five to ten years 31,215 29,671 105,720 106,186 Due after ten years 73,654 72,717 35,896 36,089 Total debt securities $ 236,297 $ 233,296 $ 196,131 $ 196,823 The $72.7 million fair value of debt securities available-for-sale with a contractual maturity due after 10 years as of December 31, 2018 , included $44.8 million , or 61.7% , that are floating-rate securities. The $105.7 million amortized cost of debt securities held-to-maturity with a contractual maturity due from five to 10 years as of December 31, 2018 , included $20.8 million that have call provisions within the next four 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 and call of debt securities available-for-sale and held-to-maturity and related realized gains and losses were: Available-for-Sale Held-to-Maturity Years Ended December 31, Years Ended December 31, (Dollars in thousands) 2018 2017 2016 2018 2017 2016 Proceeds from sales $ 31,306 $ 2,527 $ 4,691 $ — $ — $ — Proceeds from calls 6,129 21,675 2,000 1,000 3,000 2,500 Total proceeds $ 37,435 $ 24,202 $ 6,691 $ 1,000 $ 3,000 $ 2,500 Gross realized gains $ 51 $ 297 $ 34 $ 3 $ 15 $ 46 Gross realized losses 124 2 3 — — — Net realized gains (losses) $ (73 ) $ 295 $ 31 $ 3 $ 15 $ 46 Debt securities available-for-sale of $3.3 million , as of December 31, 2018 , 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 debt 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 December 31, 2018 and 2017 : December 31, 2018 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Debt securities available-for-sale: Corporate bonds $ 110,200 $ 789 $ 22,954 $ 872 $ 133,154 $ 1,661 Trust preferred securities 16,849 1,115 — — 16,849 1,115 Non-agency collateralized loan obligations — — 390 3 390 3 Agency collateralized mortgage obligations — — 3,015 4 3,015 4 Agency mortgage-backed securities 5,851 51 8,690 297 14,541 348 Agency debentures 3,487 49 — — 3,487 49 Total debt securities available-for-sale 136,387 2,004 35,049 1,176 171,436 3,180 Debt securities held-to-maturity: Corporate bonds 3,978 22 — — 3,978 22 Agency debentures 1,952 34 — — 1,952 34 Municipal bonds 16,105 51 2,110 10 18,215 61 Agency mortgage-backed securities 4,382 27 — — 4,382 27 Total debt securities held-to-maturity 26,417 134 2,110 10 28,527 144 Total temporarily debt impaired securities (1) $ 162,804 $ 2,138 $ 37,159 $ 1,186 $ 199,963 $ 3,324 (1) The number of investment positions with unrealized losses totaled 78 for available-for-sale securities and 29 for held-to-maturity securities. December 31, 2017 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Debt securities available-for-sale: Corporate bonds $ 29,995 $ 143 $ — $ — $ 29,995 $ 143 Non-agency collateralized loan obligations — — 805 6 805 6 Agency collateralized mortgage obligations 1,593 1 32,816 75 34,409 76 Agency mortgage-backed securities 2,960 10 9,437 140 12,397 150 Total debt securities available-for-sale 34,548 154 43,058 221 77,606 375 Debt securities held-to-maturity: Corporate bonds 2,406 33 — — 2,406 33 Municipal bonds 6,051 11 — — 6,051 11 Total debt securities held-to-maturity 8,457 44 — — 8,457 44 Total temporarily debt impaired securities (1) $ 43,005 $ 198 $ 43,058 $ 221 $ 86,063 $ 419 (1) The number of investment positions with unrealized losses totaled 28 for available-for-sale securities and eight for held-to-maturity securities. The changes in the fair values of our municipal bonds, agency debentures, agency collateralized mortgage obligations and agency mortgage-backed securities are primarily the result of interest rate fluctuations. To assess for credit impairment, 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 most recent review did not identify any issues related to the ultimate repayment of principal and interest on these debt securities. In addition, the Company has the ability and intent to hold debt 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. There were no debt securities classified as trading outstanding as of December 31, 2018 or December 31, 2017 . Equity securities consist of mutual funds investing in short-duration, corporate bonds and mid-cap value equities. The investments in these securities were $12.7 million and $8.6 million as of December 31, 2018 and 2017 , respectively. |
Federal Home Loan Bank Stock
Federal Home Loan Bank Stock | 12 Months Ended |
Dec. 31, 2018 | |
Federal Home Loan Bank Stock [Abstract] | |
FEDERAL HOME LOAN BANK STOCK | FEDERAL HOME LOAN BANK STOCK The Company is a member of the FHLB system. As a member of the FHLB of Pittsburgh, the Company must maintain a minimum investment in the capital stock of the FHLB in an amount equal to 4.00% of its outstanding advances, 0.75% of its issued letters of credits, and 0.10% of its membership asset value, as defined, with the FHLB. The FHLB has the ability to change the calculation of the required stock investment at any time. At December 31, 2018 , $15.5 million of stock was required based on $365.0 million in outstanding advances, $5.6 million in issued letters of credit and the Bank’s membership asset value of approximately $829.1 million . The Company held FHLB stock totaling $24.7 million and $13.8 million at December 31, 2018 and 2017 , respectively. The Company received dividends from its holdings in FHLB capital stock of $924,000 , $603,000 and $494,000 for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
LOANS | LOANS The Company generates loans through the private banking and middle-market banking channels. The private banking channel primarily includes loans made to high-net-worth individuals, trusts and businesses that are typically secured by cash, marketable securities or cash value life insurance. 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 in our primary markets. Loans held-for-investment were comprised of the following: December 31, 2018 (Dollars in thousands) Private Commercial Commercial Total Loans held-for-investment, before deferred fees and costs $ 2,864,094 $ 781,836 $ 1,482,148 $ 5,128,078 Net deferred loan costs (fees) 5,449 3,484 (4,138 ) 4,795 Loans held-for-investment, net of deferred fees and costs 2,869,543 785,320 1,478,010 5,132,873 Allowance for loan losses (1,942 ) (5,764 ) (5,502 ) (13,208 ) Loans held-for-investment, net $ 2,867,601 $ 779,556 $ 1,472,508 $ 5,119,665 December 31, 2017 (Dollars in thousands) Private Commercial Commercial Total Loans held-for-investment, before deferred fees and costs $ 2,261,625 $ 667,028 $ 1,254,184 $ 4,182,837 Net deferred loan costs (fees) 4,112 656 (3,361 ) 1,407 Loans held-for-investment, net of deferred fees and costs 2,265,737 667,684 1,250,823 4,184,244 Allowance for loan losses (1,577 ) (8,043 ) (4,797 ) (14,417 ) Loans held-for-investment, net $ 2,264,160 $ 659,641 $ 1,246,026 $ 4,169,827 The Company’s customers have unused loan commitments based on the availability of eligible collateral or other terms and conditions under the loan agreement. Often these commitments are not fully utilized and therefore the total amount does not necessarily represent future cash requirements. The amount of unfunded commitments, including standby letters of credit, as of December 31, 2018 and 2017 , was $3.54 billion and $2.37 billion , respectively. The interest rate for each commitment is based on the prevailing market conditions at the time of funding. The reserve for losses on unfunded commitments was $542,000 and $504,000 as of December 31, 2018 and 2017 , respectively, which includes reserves for probable losses on unfunded loan commitments, including standby letters of credit and risk participations. The total unfunded commitments above included loans in the process of origination totaling approximately $64.4 million and $53.3 million as of December 31, 2018 and 2017 , 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 a standby letter of credit when drawn upon by the guaranteed party in the case of non-performance by the Company’s customer. Collateral may be obtained based on management’s credit assessment of the customer. The amount of unfunded commitments related to standby letters of credit as of December 31, 2018 and 2017 , included in the total unfunded commitments above, was $60.0 million and $74.8 million , respectively. Should the Company be obligated to perform under any standby letters of credit, the Company will seek repayment from the customer for amounts paid. During the year ended December 31, 2018 and 2017 , there were draws on standby letters of credit totaling $6.6 million and $204,000 , respectively, which were immediately repaid by the borrowers or converted to an outstanding loan based on the contractual terms and subsequently repaid. Most of these commitments are expected to expire without being drawn upon and the total amount does not necessarily represent future cash requirements. The potential liability for losses on standby letters of credit was included in the reserve for losses on unfunded commitments. The Company has entered into risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are a participant. The risk participation agreements provide credit protection to the financial institution counterparties should the customers fail to perform on their interest rate derivative contracts. The potential liability for outstanding obligations was included in the reserve for losses on unfunded commitments. As of December 31, 2018 and 2017 , 90.1% and 90.5% , respectively, of the Company’s commercial loan portfolio was comprised of loans to customers within the Company’s primary market areas of Pennsylvania, Ohio, New Jersey, New York and contiguous states. As a result, the commercial loan portfolio is subject to the general economic conditions within those areas. The Company evaluates each customer’s creditworthiness on an individual basis. The amount of collateral obtained by the Company upon extension of credit is based on management’s credit evaluation of the borrower. The Company does not believe it has significant concentrations of credit risk in any one group of borrowers given its underwriting and collateral requirements. The Company’s loan portfolio is comprised of amortizing loans, where scheduled principal and interest payments are applied according to the terms of the loan agreement, as well as interest-only loans. As of December 31, 2018 and 2017 , interest-only loans represented 73.7% and 71.1% , respectively, of the loans held-for-investment, the majority of which were lines of credit. There were $2.67 billion in loans that are due on demand with no stated maturity and $2.46 billion in loans with stated maturities which have an expected average remaining maturity of approximately four years as of December 31, 2018 , compared to $2.09 billion in loans that are due on demand with no stated maturity and $2.09 billion in loans with stated maturities which have an expected average remaining maturity of approximately four years as of December 31, 2017 . As of December 31, 2018 and 2017 , 92.2% and 90.9% , respectively, of the Company’s portfolio was comprised of variable rate loans. |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
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 recorded in the consolidated statements of income and recoveries of losses previously incurred. Reductions to the allowance occur as loans are charged off or when the credit history of any of the three loan portfolios improves . Management evaluates the adequacy of the allowance at least quarterly, and in doing so relies on various factors including, but not limited to, assessment of historical loss experience, delinquency and non-accrual trends, portfolio growth, underlying collateral coverage and current economic conditions. This evaluation is subjective and requires material estimates that may change over time. In addition, management evaluates the overall methodology for the allowance for loan losses on an annual basis. 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: private banking, commercial and industrial and commercial real estate. In addition, management takes into account the historical loss experience of each loan portfolio to ensure that the 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: 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, marketable securities or cash value life insurance. This portfolio also has some loans that are secured by residential real estate or other financial assets, 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, marketable securities or cash value life insurance, which were 96.7% and 94.6% of total private banking loans as of December 31, 2018 and 2017 , respectively. Middle -Market Banking: Commercial and Industrial Loans This loan portfolio primarily includes loans made to service companies or manufacturers generally for the purposes of financing production, operating capacity, accounts receivable, inventory, equipment, acquisitions and recapitalizations. Cash flow from the borrower’s operations is the primary source of repayment for these loans. The borrower’s industry and local and regional economic conditions are important indicators of risk for this loan portfolio. Collateral for these types of loans at times does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt. C&I loans collateralized by marketable securities are treated the same as private banking loans for purposes of the allowance for loan loss calculation. 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, industrial, multifamily, retail, hospitality, healthcare and self-storage. The primary source of repayment for commercial real estate loans secured by owner-occupied properties is cash flow from the borrower’s operations. 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 commercial real estate loans secured by investment properties. 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 for 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 and collateral of the loans are important indicators of risk for this loan portfolio. Additional risks exist and are dependent on several factors such as the condition of the local and regional economies, whether or not the project is owner-occupied, the type of project, and the experience and resources of the developer. On a monthly basis, management monitors various credit quality indicators for the loan portfolio, 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 loans secured by cash, marketable securities or cash value life insurance 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. Loan risk ratings are assigned based upon the creditworthiness of the borrower and the quality of the collateral for loans secured by marketable securities. 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 that are risk rated as special mention, substandard and doubtful, which are believed to have an increasing risk of loss. Our internal risk ratings are consistent with regulatory guidance. Management also monitors the loan portfolio through a formal periodic review process. All non-pass rated loans are reviewed monthly and higher risk-rated loans within the pass category are reviewed three times a year. 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: December 31, 2018 (Dollars in thousands) Private Commercial Commercial Total Pass $ 2,864,774 $ 767,540 $ 1,475,793 $ 5,108,107 Special mention 2,532 12,636 2,217 17,385 Substandard 2,237 5,144 — 7,381 Loans held-for-investment $ 2,869,543 $ 785,320 $ 1,478,010 $ 5,132,873 December 31, 2017 (Dollars in thousands) Private Commercial Commercial Total Pass $ 2,265,369 $ 639,987 $ 1,248,972 $ 4,154,328 Special mention — 24,882 1,851 26,733 Substandard 368 2,815 — 3,183 Loans held-for-investment $ 2,265,737 $ 667,684 $ 1,250,823 $ 4,184,244 Changes in the allowance for loan losses were as follows for the years ended December 31, 2018 , 2017 and 2016 : Year Ended December 31, 2018 (Dollars in thousands) Private Commercial Commercial Total Balance, beginning of period $ 1,577 $ 8,043 $ 4,797 $ 14,417 Provision (credit) for loan losses 365 (1,275 ) 705 (205 ) Charge-offs — (2,068 ) — (2,068 ) Recoveries — 1,064 — 1,064 Balance, end of period $ 1,942 $ 5,764 $ 5,502 $ 13,208 Year Ended December 31, 2017 (Dollars in thousands) Private Commercial Commercial Total Balance, beginning of period $ 1,424 $ 12,326 $ 5,012 $ 18,762 Provision (credit) for loan losses 153 (556 ) (220 ) (623 ) Charge-offs — (4,302 ) — (4,302 ) Recoveries — 575 5 580 Balance, end of period $ 1,577 $ 8,043 $ 4,797 $ 14,417 Year Ended December 31, 2016 (Dollars in thousands) Private Commercial Commercial Total Balance, beginning of period $ 1,566 $ 11,064 $ 5,344 $ 17,974 Provision (credit) for loan losses (142 ) 4,723 (3,743 ) 838 Charge-offs — (4,258 ) — (4,258 ) Recoveries — 797 3,411 4,208 Balance, end of period $ 1,424 $ 12,326 $ 5,012 $ 18,762 The following tables present the age analysis of past due loans segregated by class of loan: December 31, 2018 (Dollars in thousands) 30-59 Days 60-89 Days Loans Past Total Current Total Private banking $ 1,040 $ 173 $ 2,000 $ 3,213 $ 2,866,330 $ 2,869,543 Commercial and industrial — — — — 785,320 785,320 Commercial real estate — — — — 1,478,010 1,478,010 Loans held-for-investment $ 1,040 $ 173 $ 2,000 $ 3,213 $ 5,129,660 $ 5,132,873 December 31, 2017 (Dollars in thousands) 30-59 Days 60-89 Days Loans Past Total Current Total Private banking $ 1,266 $ — $ — $ 1,266 $ 2,264,471 $ 2,265,737 Commercial and industrial — — — — 667,684 667,684 Commercial real estate 1,849 — — 1,849 1,248,974 1,250,823 Loans held-for-investment $ 3,115 $ — $ — $ 3,115 $ 4,181,129 $ 4,184,244 Non-Performing and Impaired Loans Management monitors the delinquency status of the Company’s loan portfolio on a monthly basis. Loans are 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 years ended December 31, 2018 , 2017 and 2016 : As of and for the Year Ended December 31, 2018 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Private banking $ 2,237 $ 2,421 $ 437 $ 2,293 $ — Commercial and industrial — — — — — Commercial real estate — — — — — Total with a related allowance recorded 2,237 2,421 437 2,293 — Without a related allowance recorded: Private banking — — — — — Commercial and industrial — — — — — Commercial real estate — — — — — Total without a related allowance recorded — — — — — Total: Private banking 2,237 2,421 437 2,293 — Commercial and industrial — — — — — Commercial real estate — — — — — Total $ 2,237 $ 2,421 $ 437 $ 2,293 $ — As of and for the Year Ended December 31, 2017 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Private banking $ 368 $ 541 $ 368 $ 438 $ — Commercial and industrial 2,815 3,135 2,139 3,067 — Commercial real estate — — — — — Total with a related allowance recorded 3,183 3,676 2,507 3,505 — Without a related allowance recorded: Private banking — — — — — Commercial and industrial 3,371 5,330 — 4,224 146 Commercial real estate — — — — — Total without a related allowance recorded 3,371 5,330 — 4,224 146 Total: Private banking 368 541 368 438 — Commercial and industrial 6,186 8,465 2,139 7,291 146 Commercial real estate — — — — — Total $ 6,554 $ 9,006 $ 2,507 $ 7,729 $ 146 As of and for the Year Ended December 31, 2016 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Private banking $ 517 $ 656 $ 517 $ 592 $ — Commercial and industrial 17,273 26,126 6,422 19,158 — Commercial real estate — — — — — Total with a related allowance recorded 17,790 26,782 6,939 19,750 — Without a related allowance recorded: Private banking — — — — — Commercial and industrial 471 487 — 485 26 Commercial real estate — — — — — Total without a related allowance recorded 471 487 — 485 26 Total: Private banking 517 656 517 592 — Commercial and industrial 17,744 26,613 6,422 19,643 26 Commercial real estate — — — — — Total $ 18,261 $ 27,269 $ 6,939 $ 20,235 $ 26 Impaired loans as of December 31, 2018 and 2017 , were $2.2 million and $6.6 million , respectively. There was no interest income recognized on impaired loans that were also on non-accrual status for the years ended December 31, 2018 , 2017 and 2016 . As of December 31, 2018 and 2017 , 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 there were specific reserves totaling $437,000 and $2.5 million as of December 31, 2018 and 2017 , respectively. The following tables present the allowance for loan losses and recorded investment in loans by class: December 31, 2018 (Dollars in thousands) Private Commercial Commercial Total Allowance for loan losses: Individually evaluated for impairment $ 437 $ — $ — $ 437 Collectively evaluated for impairment 1,505 5,764 5,502 12,771 Total allowance for loan losses $ 1,942 $ 5,764 $ 5,502 $ 13,208 Loans held-for-investment: Individually evaluated for impairment $ 2,237 $ — $ — $ 2,237 Collectively evaluated for impairment 2,867,306 785,320 1,478,010 5,130,636 Loans held-for-investment $ 2,869,543 $ 785,320 $ 1,478,010 $ 5,132,873 December 31, 2017 (Dollars in thousands) Private Commercial Commercial Total Allowance for loan losses: Individually evaluated for impairment $ 368 $ 2,139 $ — $ 2,507 Collectively evaluated for impairment 1,209 5,904 4,797 11,910 Total allowance for loan losses $ 1,577 $ 8,043 $ 4,797 $ 14,417 Loans held-for-investment: Individually evaluated for impairment $ 368 $ 6,186 $ — $ 6,554 Collectively evaluated for impairment 2,265,369 661,498 1,250,823 4,177,690 Loans held-for-investment $ 2,265,737 $ 667,684 $ 1,250,823 $ 4,184,244 Troubled Debt Restructuring The following table provides additional information on the Company’s loans designated as troubled debt restructurings: (Dollars in thousands) December 31, December 31, Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring: Accruing interest $ — $ 3,371 Non-accrual 237 3,183 Total troubled debt restructurings $ 237 $ 6,554 There were unused commitments on loans designated as troubled debt restructurings of $0 and $708,000 as of December 31, 2018 and 2017 , respectively. The modifications made to restructured loans typically consist of an extension of the payment terms or the deferral of principal payments. There were no loans modified as TDRs within 12 months of the corresponding balance sheet date with payment defaults during the years ended December 31, 2018 , 2017 or 2016 . There were no loans newly designated as TDRs during the year ended December 31, 2018 . The financial effects of our modifications made to loans newly designated as TDRs during the years ended December 31, 2017 and 2016 , were as follows: Year Ended December 31, 2017 (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 Private banking: Extended term, deferred principal and reduced interest rate 2 $ 433 $ 368 $ 433 $ 368 Total 2 $ 433 $ 368 $ 433 $ 368 Year Ended December 31, 2016 (Dollars in thousands) Count Recorded Investment at the time of Modification Current Recorded Investment Allowance for Loan Losses at the time of Modification Current Allowance for Loan Losses Commercial and industrial: Extended term and deferred principal 2 $ 11,098 $ 11,081 $ 2,354 $ 3,274 Total 2 $ 11,098 $ 11,081 $ 2,354 $ 3,274 Other Real Estate Owned As of December 31, 2018 and 2017 , the balance of the other real estate owned portfolio was $3.4 million and $3.6 million , respectively. There were no residential mortgage loans that were in the process of foreclosure as of December 31, 2018 . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill of $2.9 million and other intangible assets of $1.5 million were recorded during the year ended December 31, 2018 , related to the Columbia acquisition. The following table presents the change in goodwill for the years ended December 31, 2018 and 2017 : (Dollars in thousands) 2018 2017 Balance, beginning of period $ 38,724 $ 38,724 Additions 2,936 — Balance, end of period $ 41,660 $ 38,724 The Company determined the amount of identifiable intangible assets based upon an independent valuation. The following table presents the change in intangible assets for the years ended December 31, 2018 and 2017 : (Dollars in thousands) 2018 2017 Balance, beginning of period $ 26,634 $ 28,485 Additions 1,537 — Amortization (1,968 ) (1,851 ) Balance, end of period $ 26,203 $ 26,634 The following table presents the gross amount of intangible assets and total accumulated amortization by class: December 31, 2018 December 31, 2017 (Dollars in thousands) Gross Amount Accumulated Amortization Net Carrying Amount Gross Amount Accumulated Amortization Net Carrying Amount Trade name $ 4,040 $ (592 ) $ 3,448 $ 4,040 $ (418 ) $ 3,622 Client Relationships: Sub-advisory client list 11,645 (4,098 ) 7,547 11,530 (3,230 ) 8,300 Separate managed accounts client list 3,175 (779 ) 2,396 1,810 (505 ) 1,305 Other institutional client list 5,950 (2,614 ) 3,336 5,950 (2,074 ) 3,876 Non-compete agreements 522 (346 ) 176 465 (234 ) 231 Total finite-lived intangibles 25,332 (8,429 ) 16,903 23,795 (6,461 ) 17,334 Client Relationships: Mutual fund client relationships 9,300 — 9,300 9,300 — 9,300 Total intangibles assets $ 34,632 $ (8,429 ) $ 26,203 $ 33,095 $ (6,461 ) $ 26,634 Intangible amortization expense on finite-lived intangible assets totaled $2.0 million , $1.9 million and $1.8 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The following is a summary of the expected intangible amortization expense for finite-lived intangibles assets, assuming no new additions, for each of the five years following December 31, 2018 : (Dollars in thousands) Amount 2019 $ 2,008 2020 1,943 2021 1,911 2022 1,900 2023 1,897 Thereafter 7,244 Total finite-lived intangibles $ 16,903 |
Office Properties and Equipment
Office Properties and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Office Properties and Equipment [Abstract] | |
OFFICE PROPERTIES AND EQUIPMENT | OFFICE PROPERTIES AND EQUIPMENT The following is a summary of office properties and equipment by major classification as of December 31, 2018 and 2017 : December 31, (Dollars in thousands) 2018 2017 Furniture, fixtures and equipment $ 11,594 $ 9,812 Leasehold improvements 5,917 5,917 Total, at cost 17,511 15,729 Accumulated depreciation (12,385 ) (10,844 ) Net office properties and equipment $ 5,126 $ 4,885 Depreciation expense was $1.5 million , $1.5 million and $1.3 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The Company rents office space in its six office locations which are accounted for as operating leases. The remaining lease terms have expirations from 2020 to 2024 and provide for one or more renewal options. These leases provide for annual rent escalations and payment of certain operating expenses applicable to the leased space. The Company records rent expense on a straight-line basis over the term of the lease. Rent expense was $2.2 million , $2.2 million and $2.3 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The net deferred rent liability was $661,000 and $877,000 as of December 31, 2018 and 2017 , respectively. At December 31, 2018 , future minimum lease payments were as follows: (Dollars in thousands) Amount 2019 $ 2,629 2020 2,579 2021 1,438 2022 906 2023 587 Thereafter 320 Total $ 8,459 In conjunction with certain office leases the Company has received an allowance for leasehold improvements, which is recognized as a reduction to rent expense over the life of the corresponding lease. The unamortized amount of the allowance for leasehold improvements was $747,000 and $969,000 as of December 31, 2018 and 2017 , respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS As of December 31, 2018 and 2017 , deposits were comprised of the following: Interest Rate Range Weighted Average Balance (Dollars in thousands) December 31, December 31, December 31, December 31, December 31, Demand and savings accounts: Noninterest-bearing checking accounts — — — $ 258,268 $ 248,092 Interest-bearing checking accounts 0.05 to 3.02% 2.29% 1.42% 778,131 455,341 Money market deposit accounts 0.10 to 3.25% 2.45% 1.37% 2,781,870 2,289,789 Total demand and savings accounts 3,818,269 2,993,222 Certificates of deposit 1.15 to 3.22% 2.39% 1.40% 1,232,192 994,389 Total deposits $ 5,050,461 $ 3,987,611 Weighted average rate on interest-bearing accounts 2.41% 1.38% As of December 31, 2018 and 2017 , the Bank had total brokered deposits of $641.4 million and $1.07 billion , respectively. Reciprocal deposits through Certificate of Deposit Account Registry Service ® (“CDARS ® ”) and Insured Cash Sweep ® (“ICS ® ”) accounts totaled $565.3 million and $627.5 million as of December 31, 2018 and 2017 , respectively. As of December 31, 2017 , these reciprocal deposits were included in the total brokered deposits above, however they were considered non-brokered as of December 31, 2018 , as a result of recent legislation. As of December 31, 2018 and 2017 , certificates of deposit with balances of $100,000 or more, excluding brokered deposits, totaled $569.8 million and $440.2 million , respectively. As of December 31, 2018 and 2017 , certificates of deposit with balances of $250,000 or more, excluding brokered deposits, totaled $230.0 million and $191.4 million . The contractual maturity of certificates of deposit was as follows: (Dollars in thousands) December 31, December 31, 12 months or less $ 992,468 $ 874,733 12 months to 24 months 181,456 96,766 24 months to 36 months 58,268 22,890 Total $ 1,232,192 $ 994,389 Interest expense on deposits for the years ended December 31, 2018 , 2017 and 2016 , was as follows: Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Interest-bearing checking accounts $ 11,440 $ 3,706 $ 813 Money market deposit accounts 45,106 22,350 11,376 Certificates of deposit 21,947 11,429 7,618 Total interest expense on deposits $ 78,493 $ 37,485 $ 19,807 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS As of December 31, 2018 and 2017 , borrowings were comprised of the following: December 31, 2018 December 31, 2017 (Dollars in thousands) Interest Rate Ending Balance Maturity Date Interest Rate Ending Balance Maturity Date FHLB borrowings: FHLB line of credit 2.62% $ 250,000 5/1/2019 $ — Issued 12/31/2018 2.65% 65,000 1/2/2019 — Issued 10/10/2018 2.54% 50,000 1/8/2019 — Issued 12/29/2017 — 1.57% 195,000 1/2/2018 Issued 12/29/2017 — 1.66% 100,000 3/29/2018 Line of credit borrowings 5.47% 4,250 9/28/2019 4.56% 6,200 12/28/2018 Subordinated notes payable (net of debt issuance costs of $84 and $287, respectively) 5.75% 34,916 7/1/2019 5.75% 34,713 7/1/2019 Total borrowings, net $ 404,166 $ 335,913 The Bank’s FHLB borrowing capacity is based on the collateral value of certain securities held in safekeeping at the FHLB and loans pledged to the FHLB. The Bank submits a quarterly Qualified Collateral Report (“QCR”) to the FHLB to update the value of the loans pledged. As of December 31, 2018 , the Bank’s borrowing capacity is based on the information provided in the September 30, 2018 , QCR filing. As of December 31, 2018 , the Bank had securities held in safekeeping at the FHLB with a fair value of $3.3 million , combined with pledged loans of $1.11 billion , for a gross borrowing capacity of $791.9 million , of which $365.0 million was outstanding in advances. As of December 31, 2017 , there was $295.0 million outstanding in advances from the FHLB. When the Bank borrows from the FHLB, interest is charged at the FHLB’s posted rates at the time of the borrowing. The Bank maintains an unsecured line of credit of $10.0 million with M&T Bank and an unsecured line of credit of $20.0 million with Texas Capital Bank. As of December 31, 2018 and 2017 , there were no outstanding borrowings under these lines of credit and they are available to the Bank at the lenders’ discretion. In addition, the Bank maintains a $2.0 million unsecured line of credit with PNC Bank for private label credit card facilities for certain commercial clients of the Bank. The holding company maintains an unsecured line of credit of $30.0 million with Texas Capital Bank. As of December 31, 2018 and 2017 , there was $4.3 million and $6.2 million outstanding, respectively. Interest expense on borrowings for the years ended December 31, 2018 , 2017 and 2016 , was as follows: Years Ended December 31, (Dollars in thousands) 2018 2017 2016 FHLB borrowings $ 5,555 $ 3,152 $ 1,477 Line of credit borrowings 119 90 — Subordinated notes payable 2,215 2,215 2,215 Total interest expense on borrowings $ 7,889 $ 5,457 $ 3,692 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The income tax provision reconciled to taxes computed at the statutory federal rate for the years ended December 31, 2018 , 2017 and 2016 , was as follows: Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Tax provision at statutory rate $ 12,677 $ 16,615 $ 14,591 Nondeductible expenses 595 294 279 Bank owned life insurance (360 ) (622 ) (629 ) Stock option exercises and cancellations (844 ) (674 ) (484 ) State tax expense, net of federal benefit 1,927 1,024 1,184 Impact of change in tax rates (332 ) (2,351 ) — Adjustments to prior year tax (133 ) 215 46 Tax exempt income, net of disallowed interest (79 ) (151 ) (162 ) Renewable energy tax credits (6,568 ) (4,629 ) (1,778 ) Low income housing tax credits (95 ) (260 ) (17 ) Historic tax credits (860 ) — — Other 17 21 18 Income tax provision $ 5,945 $ 9,482 $ 13,048 In December 2017, the Tax Cuts and Jobs Act was signed into law, which lowered the maximum corporate tax rate from 35% to 21%. Due to this enactment, the income tax provision for the year ended December 31, 2017 , was impacted by a $2.4 million one-time benefit on the re-measurement of the Company’s deferred tax liability. The adjustment was largely related to the acceleration of an incentive compensation deduction for tax purposes and favorable depreciation treatment associated with renewable energy credits. The tax credits in the table above relate to transactions for the financing of renewable solar energy facilities, low income housing tax credits and historic tax credits. These transactions provided federal tax credits and state tax credits (where applicable) during the 2018 , 2017 and 2016 tax years. The financing of the solar energy facilities is accounted for as direct financing leases included within the C&I loan portfolio. The amortization of the Company’s low income housing tax credit investments has been reflected as income tax expense. The net amount of low income housing tax credits, amortization and tax benefits recorded to income tax expenses during the years ended December 31, 2018 , 2017 and 2016 , was $95,000 , $260,000 and $17,000 , respectively. The carrying amount of the investment in low income housing tax credits was $32.1 million , of which $24.3 million was unfunded as of December 31, 2018 . The net amount of historic tax credits recorded to income tax expenses was $860,000 during the year ended December 31, 2018 . The carrying amount of the investment in historic tax credits was $3.1 million , of which $1.8 million was unfunded as of December 31, 2018 . The income tax provision for the years ended December 31, 2018 , 2017 and 2016 , consisted of: Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Current income tax provision (benefit) - federal $ 2,712 $ (2,324 ) $ 7,781 Current income tax provision - state 2,999 696 1,592 Deferred tax provision - federal 904 10,050 3,322 Deferred tax provision (benefit) - state (670 ) 1,060 353 Income tax provision $ 5,945 $ 9,482 $ 13,048 The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2018 and 2017 , were as follows: December 31, (Dollars in thousands) 2018 2017 Deferred tax assets: Net operating loss - state $ 143 $ 200 Start-up expenses 47 65 Stock compensation 3,376 2,150 Compensation related accruals 3,976 779 Leasehold improvement 205 251 Allowance for loan loss 3,157 3,376 Long-term lease 158 205 Reserve for unfunded commitments 130 118 Supplemental executive retirement plan 871 824 Transaction costs 138 288 Earn out liability non-purchase accounting 298 374 Unrealized loss on investments and derivatives 733 — State bonus depreciation 1,326 — General business credits 4,424 — Other 325 180 Gross deferred tax assets 19,307 8,810 Deferred tax liabilities: Office properties and equipment (13,906 ) (6,947 ) Prepaid expenses (370 ) — Deferred loan costs (4,477 ) (2,447 ) Intangibles (93 ) (9 ) Goodwill (3,813 ) (3,003 ) State capital shares tax liability (161 ) (101 ) Unrealized gain on investments and derivatives — (455 ) Gross deferred tax liability (22,820 ) (12,962 ) Net deferred tax asset (liability) $ (3,513 ) $ (4,152 ) Management believes that, as of December 31, 2018 , it is more likely than not that the deferred tax assets will be fully realized upon the generation of future taxable income. The Company has certain pre-tax state net operating loss carryforwards of $1.9 million , which will expire in 2038 . The Company has general business credits of $4.4 million , which will expire in 2038 . The change in the net deferred tax asset or liability for the years ended December 31, 2018 and 2017 , was detailed as follows: December 31, (Dollars in thousands) 2018 2017 Deferred tax provision $ (234 ) $ (11,110 ) Deferred tax impact from other comprehensive income 873 (246 ) Change in net deferred tax asset or liability $ 639 $ (11,356 ) The Company considers uncertain tax positions that it has taken or expects to take on a tax return. The Company recognizes interest accrued and penalties (if any) related to unrecognized tax benefits in income tax expense. Tax years 2015 through 2018 remain subject to federal and state tax examinations as of December 31, 2018 . A federal tax examination of the 2015 tax year is currently in progress. A reconciliation of the beginning and ending gross amounts of unrecognized tax benefits for the years ended December 31, 2018 , 2017 and 2016 , was as follows: December 31, (Dollars in thousands) 2018 2017 2016 Beginning of year balance $ 744 $ 599 $ 353 Increases in prior period tax positions — 18 26 Decreases in prior period tax positions (250 ) — — Increases in current period tax positions 210 127 220 Settlements — — — End of year balance $ 704 $ 744 $ 599 The total estimated unrecognized tax benefit that, if recognized, would affect the Company’s effective tax rate was approximately $605,000 , $620,000 and $390,000 as of December 31, 2018 , 2017 and 2016 , respectively. The impact of interest and penalties was immaterial to the Company’s financial statements for the years ended December 31, 2018 , 2017 and 2016 . The Company does not expect changes in its unrecognized tax benefits in the next twelve months to have a material impact on its financial statements. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 and 2017 , TriState Capital Holdings, Inc. and TriState Capital Bank exceeded all capital adequacy requirements to which they were subjected. Financial depository institutions are categorized as well capitalized if they meet minimum capital ratios as set forth in the tables below. 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 in the tables below. Basel III, which began phasing in on January 1, 2015, has replaced the 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 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 was phased in over a four -year period until it reached 2.5% on January 1, 2019. As of December 31, 2018 and 2017 , the capital conservation buffer was 1.875% and 1.25% , respectively, in addition to the minimum capital adequacy levels in the tables below. Thus, both the Company and the Bank were above the levels required to avoid limitations on capital distributions and discretionary bonus payments. The following tables set forth certain information concerning the Company’s and the Bank’s regulatory capital as of December 31, 2018 and 2017 : December 31, 2018 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 $ 426,066 10.86 % $ 313,789 8.00 % N/A N/A Bank $ 437,849 11.25 % $ 311,497 8.00 % $ 389,371 10.00 % Tier 1 risk-based capital ratio Company $ 414,808 10.58 % $ 235,342 6.00 % N/A N/A Bank $ 424,418 10.90 % $ 233,622 6.00 % $ 311,497 8.00 % Common equity tier 1 risk-based capital ratio Company $ 378,117 9.64 % $ 176,506 4.50 % N/A N/A Bank $ 424,418 10.90 % $ 175,217 4.50 % $ 253,091 6.50 % Tier 1 leverage ratio Company $ 414,808 7.28 % $ 227,851 4.00 % N/A N/A Bank $ 424,418 7.49 % $ 226,762 4.00 % $ 283,453 5.00 % December 31, 2017 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 $ 343,758 11.72 % $ 234,576 8.00 % N/A N/A Bank $ 348,378 11.99 % $ 232,392 8.00 % $ 290,490 10.00 % Tier 1 risk-based capital ratio Company $ 326,594 11.14 % $ 175,932 6.00 % N/A N/A Bank $ 337,656 11.62 % $ 174,294 6.00 % $ 232,392 8.00 % Common equity tier 1 risk-based capital ratio Company $ 326,594 11.14 % $ 131,949 4.50 % N/A N/A Bank $ 337,656 11.62 % $ 130,720 4.50 % $ 188,818 6.50 % Tier 1 leverage ratio Company $ 326,594 7.25 % $ 180,090 4.00 % N/A N/A Bank $ 337,656 7.55 % $ 178,979 4.00 % $ 223,723 5.00 % |
Stock Transactions
Stock Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
STOCK TRANSACTIONS | STOCK TRANSACTIONS In March 2018, the Company completed the issuance and sale of a registered, underwritten public offering of 1,610,000 depositary shares, each representing a 1/40th interest in a share of its 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock, no par value (the “Series A Preferred Stock”), with a liquidation preference of $1,000 per share (equivalent to $25 per depository share). The Company received net proceeds of $38.5 million from the sale of 40,250 shares of its Series A Preferred Stock (equivalent to 1,610,000 depositary shares), after deducting underwriting discounts, commissions and direct offering expenses. The preferred stock provides Tier 1 capital for the holding company under federal regulatory capital rules. When, as, and if declared by the board of directors of the Company (the “Board”), dividends will be payable on the Series A Preferred Stock from the date of issuance to, but excluding April 1, 2023, at a rate of 6.75% per annum, payable quarterly, in arrears, and from and including April 1, 2023, dividends will accrue and be payable at a floating rate equal to three-month LIBOR plus a spread of 398.5 basis points per annum, payable quarterly, in arrears. The Company may redeem the Series A Preferred Stock at its option, subject to regulatory approval, on or after April 1, 2023, as described in the prospectus supplement relating to the offering filed with the SEC on March 19, 2018. On April 27, 2018 , the Board declared a dividend payable of approximately $762,000 , or $0.47 per depositary share, on the Series A Preferred Stock, which was payable on July 2, 2018 , to preferred shareholders of record as of the close of business on June 15, 2018 . On July 17, 2018 , the Board declared a dividend payable of approximately $679,000 , or $0.42 per depositary share, on the Series A Preferred Stock, which was payable on October 1, 2018 , to preferred shareholders of record as of the close of business on September 14, 2018 . On October 16, 2018 , the Board declared a dividend payable of approximately $679,000 , or $0.42 per depositary share, on the Series A Preferred Stock, which was payable on January 2, 2019 , to preferred shareholders of record as of the close of business on December 18, 2018 . Under authorizations by the Board, the Company was permitted to repurchase its common stock up to prescribed amounts, of which $2.2 million remained available as of December 31, 2018 . The Board also authorized the Company to utilize some of the share repurchase program authorizations to cancel certain options to purchase shares of its common stock granted by the Company. During the year ended December 31, 2018 , the Company repurchased a total of 263,540 shares of common stock for approximately $6.8 million , at an average cost of $25.83 per share. During the year ended December 31, 2017 , the Company repurchased a total of 376,641 shares of common stock for approximately $8.7 million , at an average cost of $23.03 per share. During the year ended December 31, 2016 , the Company repurchased a total of 374,729 shares of common stock for approximately $5.1 million , at an average cost of $13.68 per share. The repurchased shares are held as treasury stock. The table below shows the changes in the Company’s preferred and common shares outstanding during the periods indicated: Number of Number of Balance, December 31, 2015 — 28,056,195 Issuance of restricted common stock — 497,309 Forfeitures of restricted common stock — (13,121 ) Exercise of stock options — 250,000 Purchase of treasury stock — (374,729 ) Balance, December 31, 2016 — 28,415,654 Issuance of restricted common stock — 396,175 Forfeitures of restricted common stock — (14,637 ) Exercise of stock options — 170,550 Purchase of treasury stock — (376,641 ) Balance, December 31, 2017 — 28,591,101 Issuance of preferred stock 40,250 — Issuance of restricted common stock — 423,113 Forfeitures of restricted common stock — (27,250 ) Exercise of stock options — 155,250 Purchase of treasury stock — (263,540 ) Balance, December 31, 2018 40,250 28,878,674 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The Company participates in a qualified 401(k) defined contribution plan under which eligible employees may contribute a percentage of their salary, at their discretion. During the years ended December 31, 2018 , 2017 and 2016 , the Company automatically contributed three percent of each eligible 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 $952,000 , $863,000 and $788,000 for the years ended December 31, 2018 , 2017 and 2016 , respectively. On February 28, 2013, the Company entered into a supplemental executive retirement plan (“SERP”) for its Chairman and Chief Executive Officer. The benefits were earned over a five -year period ended January 31, 2018 , with the projected payments for this SERP of $25,000 per month for 180 months commencing the latter of retirement or 60 months . For the years ended December 31, 2018 , 2017 and 2016 , the Company recorded expense related to SERP of $127,000 , $513,000 and $919,000 , respectively, utilizing a discount rate of 3.70% , 3.59% and 2.15% , respectively. The recorded liability related to the SERP plan was $3.6 million and $3.5 million as of December 31, 2018 and 2017 , respectively. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The computation of basic and diluted earnings per common share for the years ended December 31, 2018 , 2017 and 2016 , was as follows: Years Ended December 31, (Dollars in thousands, except per share data) 2018 2017 2016 Net income available to common shareholders $ 52,304 $ 37,988 $ 28,641 Weighted average common shares outstanding: Basic 27,583,519 27,550,833 27,593,725 Restricted stock - dilutive 780,357 649,956 260,799 Stock options - dilutive 469,520 510,533 504,628 Diluted 28,833,396 28,711,322 28,359,152 Earnings per common share: Basic $ 1.90 $ 1.38 $ 1.04 Diluted $ 1.81 $ 1.32 $ 1.01 Years Ended December 31, 2018 2017 2016 Anti-dilutive shares (1) 7,000 27,000 125,500 (1) Includes stock options and/or restricted stock not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive. |
Stock-Based Compensation Progra
Stock-Based Compensation Programs | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PROGRAMS | STOCK-BASED COMPENSATION PROGRAMS The Company’s 2006 Stock Option Plan (the “2006 Plan”) provided for the granting of incentive and non-qualifying stock options to the Company’s key employees, key contractors and outside directors at the discretion of the Board. The Omnibus Incentive Plan (the “Omnibus Plan”), which was approved by the Company’s shareholders on May 20, 2014, provides for the granting of incentive and non-qualifying stock options, stock appreciation rights, restricted shares, restricted stock units, dividend equivalent rights and other equity-based or equity-related awards to the Company’s key employees, key contractors and outside directors at the discretion of the Board. The Omnibus Plan, upon its approval, replaced the 2006 Plan. The total number of shares of common stock that may be granted under the Omnibus Plan is the number of authorized shares of common stock of the Company that remained available under the 2006 Plan as of the date of shareholder approval, plus any shares of common stock issued pursuant to the 2006 Plan that were forfeited, canceled, expired or otherwise terminated. The shares reserved for grants under the 2006 Plan are no longer be available for grants under that plan, but are instead reserved for grants under the Omnibus Plan. The total shares of common stock which may be issued upon the grant or exercise of stock-based awards, as authorized by shareholders of the Company, was 4,000,000 as of December 31, 2018 , under both the 2006 Plan and the Omnibus Plan (combined the “Plans”). As of December 31, 2018 , the Company has issued non-qualifying stock options and restricted shares. The aggregate awards outstanding were 2,047,159 under both of the Plans. As of December 31, 2018 , 862,793 stock options and restricted shares had been exercised or vested, respectively, leaving 1,090,048 additional awards available for the Company to grant under the Omnibus Plan. The Company’s stock option grants contain terms that provide for a graded vesting schedule whereby portions of the options vest in increments over the requisite service period. Options and restricted shares issued under the Plans typically vest in 2.5 to 5 years. The Company recognizes compensation expense for awards with graded vesting schedules on a straight-line basis over the requisite service period for the entire grant. The Company’s compensation expense for all awards was $8.2 million , $5.9 million and $3.6 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. In 2018 and 2016 , the Board approved stock option cancellation programs to allow for certain outstanding and vested stock option awards to be canceled by the option holder at a price based on the closing day’s stock price less the option exercise price. During the year ended December 31, 2018, there were 65,446 options canceled for $945,000 , which was recorded as a reduction to additional paid-in capital. During the year ended December 31, 2016, there were 1,174,500 options canceled for $6.2 million , which was recorded as a reduction to additional paid-in capital. STOCK OPTIONS The fair value of each option award was estimated on the date of the grant using the Black-Scholes option pricing model. Expected term was calculated utilizing the simplified method because the Company had limited historical exercise behavior. Since the Company was newly publicly traded and there was not enough trading history, expected volatility was computed based on median historical volatility of similar entities with publicly traded shares. The risk-free rate for the expected term of the option was based on the U.S. Treasury yield curve in effect at the time of grant. The computation assumed that there would be no dividends paid to common shareholders during the contractual life of the options. There were no stock options granted for the years ended December 31, 2018 and 2017 . The weighted average assumptions for stock options granted for the year ended December 31, 2016 , were as follows: December 31, 2016 Valuation Assumptions: Expected dividend yield 0.0 % Expected volatility 35.9 % Expected term (years) 6.9 Risk-free interest rate 1.7 % Stock option activity during the periods indicated was as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Balance, December 31, 2015 2,559,393 $ 10.30 3.98 Granted 22,000 12.07 Exercised (250,000 ) 10.69 Forfeited (23,500 ) 11.77 Canceled (1,174,500 ) 10.00 Expired — — Balance, December 31, 2016 1,133,393 $ 10.53 5.76 Granted — — Exercised (170,550 ) 9.75 Forfeited (16,500 ) 10.30 Canceled — — Expired — — Balance, December 31, 2017 946,343 $ 10.67 5.01 Granted — — Exercised (155,250 ) 10.74 Forfeited (15,000 ) 11.74 Canceled (65,446 ) 10.30 Expired (16,500 ) 13.53 Balance, December 31, 2018 694,147 $ 10.60 4.26 Exercisable as of December 31, 2016 575,116 $ 10.01 4.32 Exercisable as of December 31, 2017 617,646 $ 10.16 4.25 Exercisable as of December 31, 2018 429,450 $ 9.97 3.49 The weighted average grant date fair value of options granted during the year ended December 31, 2016 , was $5.14 . The weighted average grant date fair value of options exercised during the years ended December 31, 2018 , 2017 and 2016 was $4.94 , $4.69 and $4.85 , respectively. A summary of the status of the Company’s non-vested options as of and changes during the years ended December 31, 2018 , 2017 and 2016 , is presented below: Non-vested options: Number of Options Weighted Average Grant-Date Balance, December 31, 2015 769,643 $ 4.93 Granted 22,000 5.14 Vested (209,866 ) 3.73 Forfeited (23,500 ) 5.16 Balance, December 31, 2016 558,277 $ 4.95 Granted — — Vested (213,080 ) 4.97 Forfeited (16,500 ) 4.99 Balance, December 31, 2017 328,697 $ 4.94 Granted — — Vested (49,000 ) 4.82 Forfeited (15,000 ) 5.01 Balance, December 31, 2018 264,697 $ 4.96 As of December 31, 2018 , there was $249,000 of total unrecognized compensation cost related to non-vested options granted under the Plans, and the unrecognized compensation cost is expected to be recognized over a weighted average period of 1.2 years. RESTRICTED SHARES A summary of the status of the Company’s non-vested restricted shares as of and changes during the years ended December 31, 2018 , 2017 and 2016 , is presented below: Non-vested restricted shares: Number of Shares Weighted Average Grant-Date Balance, December 31, 2015 305,916 $ 10.55 Granted 497,309 12.96 Vested (6,799 ) 11.95 Forfeited (13,121 ) 11.76 Balance, December 31, 2016 783,305 $ 12.05 Granted 396,175 22.07 Vested (27,000 ) 10.66 Forfeited (14,637 ) 13.87 Balance, December 31, 2017 1,137,843 $ 15.54 Granted 423,113 23.90 Vested (180,694 ) 10.68 Forfeited (27,250 ) 20.61 Balance, December 31, 2018 1,353,012 $ 18.70 As of December 31, 2018 , there was $12.5 million of total unrecognized compensation cost related to non-vested restricted shares granted under the Omnibus Plan, and the unrecognized compensation cost is expected to be recognized over a weighted average period of 2.1 years. |
Derivatives and Hedging Activit
Derivatives and Hedging Activity | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITY | DERIVATIVES AND HEDGING ACTIVITY RISK MANAGEMENT OBJECTIVE OF USING DERIVATIVES The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts related to certain of the Company’s fixed-rate loan assets 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 December 31, 2018 and 2017 : Asset Derivatives Liability Derivatives as of December 31, 2018 as of December 31, 2018 (Dollars in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate products Other assets $ 1,384 Other liabilities $ — Derivatives not designated as hedging instruments: Interest rate products Other assets 25,523 Other liabilities 25,518 Total Other assets $ 26,907 Other liabilities $ 25,518 Asset Derivatives Liability Derivatives as of December 31, 2017 as of December 31, 2017 (Dollars in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate products Other assets $ 1,650 Other liabilities $ 9 Derivatives not designated as hedging instruments: Interest rate products Other assets 12,111 Other liabilities 12,069 Total Other assets $ 13,761 Other liabilities $ 12,078 The following tables show the impact legally enforceable master netting agreements had on the Company’s derivative financial instruments as of December 31, 2018 and 2017 : Offsetting of Derivative Assets Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets Gross Amounts Not Offset in the Statement of Financial Position Net Amount (Dollars in thousands) Financial Instruments Cash Collateral Received December 31, 2018 $ 26,907 $ — $ 26,907 $ (9,587 ) $ — $ 17,320 December 31, 2017 $ 13,761 $ — $ 13,761 $ (5,677 ) $ — $ 8,084 Offsetting of Derivative Liabilities Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Liabilities Gross Amounts Not Offset in the Statement of Financial Position Net Amount (Dollars in thousands) Financial Instruments Cash Collateral Posted December 31, 2018 $ 25,518 $ — $ 25,518 $ (9,587 ) $ (3,941 ) $ 11,990 December 31, 2017 $ 12,078 $ — $ 12,078 $ (5,677 ) $ (124 ) $ 6,277 FAIR VALUE HEDGES OF INTEREST RATE RISK The Company is exposed to changes in the fair value of certain of its fixed-rate obligations due to changes in benchmark interest rates, which relate predominantly to LIBOR. Interest rate swaps designated as fair value hedges involve the receipt of variable-rate payments from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. As of December 31, 2018 , the Company no longer had interest rate swaps that were designated as fair value hedges of interest rate risk associated with the Company’s fixed-rate loan assets. For the 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 table below presents the effect of the Company’s fair value hedge instruments in the consolidated statements of income for the years ended December 31, 2018 , 2017 and 2016 : Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Derivatives designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivatives Realized Gain (Loss) Interest rate products Interest income $ (9 ) $ (60 ) $ (88 ) Interest rate products Non-interest income — 4 4 Total $ (9 ) $ (56 ) $ (84 ) CASH FLOW HEDGES OF INTEREST RATE RISK The Company’s objectives in using certain interest rate derivatives are to add stability to net interest income 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. The Company has entered into derivative contracts to hedge the variable cash flows associated with certain FHLB borrowings. These interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company effectively 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. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company’s cash flow hedge derivatives did not have any hedge ineffectiveness recognized in earnings during the years ended December 31, 2018 and 2017 . Characteristics of the Company’s interest rate derivative transactions designated as cash flow hedges of interest rate risk as of December 31, 2018 , were as follows: (Dollars in thousands) Notional Estimated Increase/(Decrease) to Interest Expense in the Next Twelve Months Maturity Date Remaining Term Interest rate products: Issued 6/29/2016 $ 100,000 $ (958 ) 6/29/2019 6 Issued 1/8/2018 50,000 (245 ) 1/8/2021 24 Total $ 150,000 $ (1,203 ) The table below presents the effective portion of the Company’s cash flow hedge instruments in the consolidated statements of income for the years ended December 31, 2018 , 2017 and 2016 : Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Derivatives designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivatives Realized Gain (Loss) Interest rate products Interest expense $ 1,380 $ 371 $ (43 ) The table below presents the effective portion of the Company’s cash flow hedge instruments in accumulated other comprehensive income for the years ended December 31, 2018 , 2017 and 2016 : Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Derivatives designated as hedging instruments: Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives Interest rate products $ 1,027 $ 287 $ 1,750 NON-DESIGNATED HEDGES The Company does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate derivatives with its commercial banking customers to facilitate their respective risk management strategies. Those derivatives are simultaneously and economically hedged by offsetting derivatives that the Company executes with a third party, such that the Company eliminates its interest rate exposure resulting from such transactions. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As of December 31, 2018 , the Company had derivative transactions with an aggregate notional amount of $2.04 billion related to this program. The table below presents the effect of the Company’s non-designated hedge instruments in the consolidated statements of income for the years ended December 31, 2018 , 2017 and 2016 : Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivatives Realized Gain (Loss) Interest rate products Non-interest income $ 14 $ (1 ) $ 528 CREDIT-RISK-RELATED CONTINGENT FEATURES The Company has agreements with each of its derivative counterparties that contain a provision where, if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company has agreements with certain of its derivative counterparties that contain a provision where, if either the Company or the counterparty fails to maintain its status as a well/adequately capitalized institution, then the Company or the counterparty could be required to terminate any outstanding derivative positions and settle its obligations under the agreement. As of December 31, 2018 , the termination value of derivatives for which we had master netting arrangements with the counterparty and in a net liability position was $6.1 million , including accrued interest. As of December 31, 2018 , the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $5.8 million . If the Company had breached any of these provisions as of December 31, 2018 , it could have been required to settle its obligations under the agreements at their termination value. |
Disclosures About Fair Value of
Disclosures About Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
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 and corroborates the reasonableness of external inputs in the valuation process. RECURRING FAIR VALUE MEASUREMENTS The following tables represent assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017 : December 31, 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets / Financial assets: Debt securities available-for-sale: Corporate bonds $ — $ 151,063 $ — $ 151,063 Trust preferred securities — 16,849 — 16,849 Non-agency collateralized loan obligations — 390 — 390 Agency collateralized mortgage obligations — 33,718 — 33,718 Agency mortgage-backed securities — 21,264 — 21,264 Agency debentures — 10,012 — 10,012 Equity securities 12,661 — — 12,661 Interest rate swaps — 26,907 — 26,907 Total financial assets $ 12,661 $ 260,203 $ — $ 272,864 Financial liabilities: Interest rate swaps $ — $ 25,518 $ — $ 25,518 Acquisition earn out liability — — 2,920 2,920 Total financial liabilities $ — $ 25,518 $ 2,920 $ 28,438 December 31, 2017 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets / Financial assets: Debt securities available-for-sale: Corporate bonds $ — $ 61,689 $ — $ 61,689 Trust preferred securities — 18,581 — 18,581 Non-agency collateralized loan obligations — 805 — 805 Agency collateralized mortgage obligations — 38,822 — 38,822 Agency mortgage-backed securities — 18,953 — 18,953 Equity securities 8,635 — — 8,635 Interest rate swaps — 13,761 — 13,761 Total financial assets $ 8,635 $ 152,611 $ — $ 161,246 Financial liabilities: Interest rate swaps $ — $ 12,078 $ — $ 12,078 Total financial liabilities $ — $ 12,078 $ — $ 12,078 INVESTMENT SECURITIES Generally, debt securities are valued using pricing for similar securities, recently executed transactions, and other pricing models utilizing observable inputs and therefore are classified as Level 2. Equity securities (including mutual funds) are classified as Level 1 because these securities are in actively traded markets. INTEREST RATE SWAPS The fair value of interest rate swaps 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. ACQUISITION EARN OUT LIABILITY The fair value of the Columbia acquisition earn out liability is estimated based on management’s estimate of the projected annualized run-rate revenue of Columbia at December 31, 2018 , and therefore are classified as Level 3. For additional information on the calculation of the earn out, refer to Note 2 , Business Combination . NON-RECURRING FAIR VALUE MEASUREMENTS Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following tables represent the balances of assets measured at fair value on a non-recurring basis as of December 31, 2018 and 2017 : December 31, 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Loans measured for impairment, net $ — $ — $ 1,800 $ 1,800 Other real estate owned — — 3,424 3,424 Total assets $ — $ — $ 5,224 $ 5,224 December 31, 2017 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Loans measured for impairment, net $ — $ — $ 4,047 $ 4,047 Other real estate owned — — 3,576 3,576 Total assets $ — $ — $ 7,623 $ 7,623 As of December 31, 2018 and 2017 , the Company recorded $437,000 and $2.5 million , respectively, of specific reserves to the 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 flow method or the fair value of the underlying collateral less estimated selling costs. Our policy is to obtain appraisals on collateral supporting impaired loans on an annual basis, unless circumstances dictate a shorter time frame. Appraisals are reduced by estimated costs to sell the collateral and, under certain circumstances, additional factors that may arise and cause us to believe our recoverable 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 Other real estate owned is comprised of property acquired through foreclosure or voluntarily conveyed by borrowers. These assets are recorded on the date acquired at 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 recoverable value may be less than the independent appraised value. Accordingly, real estate owned is classified as Level 3. LEVEL 3 VALUATION The following tables present additional quantitative information about assets measured at fair value on a recurring and non-recurring basis and for which we have utilized Level 3 inputs to determine fair value as of December 31, 2018 and 2017 : December 31, 2018 (Dollars in thousands) Fair Value Valuation Techniques (1) Significant Unobservable Inputs Weighted Average Multiple/Discount Rate Acquisition earn out liability $ 2,920 Income approach Run-rate revenue multiple; client retention 1.6 times Loans measured for impairment, net $ 1,800 Appraisal value Discount due to salability conditions 16% Other real estate owned $ 3,424 Appraisal value Discount due to salability conditions 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, 2017 (Dollars in thousands) Fair Value Valuation Techniques (1) Significant Unobservable Inputs Weighted Average Discount Rate Loans measured for impairment, net $ 676 Appraisal value Discount due to salability conditions —% Loans measured for impairment, net $ 3,371 Discounted cash flow Discount due to restructured nature of operations 6% Other real estate owned $ 3,576 Appraisal value Discount due to salability conditions 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. FAIR VALUE OF FINANCIAL INSTRUMENTS The following is a summary of the carrying amounts and estimated fair values of financial instruments as of December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 (Dollars in thousands) Fair Value Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents 1 $ 189,985 $ 189,985 $ 156,153 $ 156,153 Debt securities available-for-sale 2 233,296 233,296 138,850 138,850 Debt securities held-to-maturity 2 196,131 196,823 59,275 60,141 Equity securities 1 12,661 12,661 8,635 8,635 Federal Home Loan Bank stock 2 24,671 24,671 13,792 13,792 Loans held-for-investment, net 3 5,119,665 5,119,562 4,169,827 4,167,775 Accrued interest receivable 2 20,702 20,702 13,519 13,519 Investment management fees receivable, net 2 7,299 7,299 7,720 7,720 Bank owned life insurance 2 68,309 68,309 66,593 66,593 Other real estate owned 3 3,424 3,424 3,576 3,576 Interest rate swaps 2 26,907 26,907 13,761 13,761 Financial liabilities: Deposits 2 $ 5,050,461 $ 5,048,079 $ 3,987,611 $ 3,985,883 Borrowings, net 2 404,166 404,084 335,913 336,051 Acquisition earn out liability 3 2,920 2,920 — — Interest rate swaps 2 25,518 25,518 12,078 12,078 During the years ended December 31, 2018 , 2017 and 2016 , there were no transfers between fair value Levels 1, 2 or 3. The following methods and assumptions were used to estimate the fair value of each class of financial instruments as of December 31, 2018 and 2017 : CASH AND CASH EQUIVALENTS The carrying amount approximates fair value. INVESTMENT SECURITIES The fair values of debt securities available-for-sale, debt securities held-to-maturity, debt securities trading and equity securities 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 carried at cost, approximates fair value. LOANS HELD-FOR-INVESTMENT The fair value of loans held-for-investment is estimated by discounting the future cash flows using market rates (utilizing both unobservable and certain observable inputs when applicable) at which similar loans would be made to borrowers with similar credit ratings over the estimated remaining maturities. 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 general account BOLI is based on the insurance contract net cash surrender value. OTHER REAL ESTATE OWNED Real estate owned is recorded on the date acquired at 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 deposits 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 borrowings is calculated by discounting scheduled cash flows through the estimated maturity using period end market rates for borrowings of similar remaining maturities. ACQUISITION EARN OUT LIABILITY The carrying amount of the Columbia acquisition earn out liability approximates fair value. For additional information on the calculation of the earn out, refer to Note 2 , Business Combination . INTEREST RATE SWAPS The fair value of interest rate swaps are estimated through the assistance of an independent third party and compared to the fair value determined by the swap counterparty to establish reasonableness. OFF-BALANCE SHEET INSTRUMENTS Fair values for the Company’s off-balance sheet instruments, which consist of lending commitments, standby letters of credit and risk participation agreements related to interest rate swap agreements, are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. Management believes that the fair value of these off-balance sheet instruments is not significant. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
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) net of tax, for the years ended December 31, 2018 , 2017 and 2016 : Years Ended December 31, 2018 2017 2016 (Dollars in thousands) Investment Securities Derivatives Total Investment Securities Derivatives Total Investment Securities Derivatives Total Balance, beginning of period $ 172 $ 1,074 $ 1,246 $ (297 ) $ 1,127 $ 830 $ (1,443 ) $ — $ (1,443 ) Change in unrealized holding gains (losses) (2,913 ) 773 (2,140 ) 655 180 835 1,166 1,100 2,266 Losses (gains) reclassified from other comprehensive income 53 (1,050 ) (997 ) (186 ) (233 ) (419 ) (20 ) 27 7 Reclassification for equity securities under ASU 2016-01 (see Note 1) 286 — 286 — — — — — — Reclassification for certain income tax effects under ASU 2018-02 (see Note 1) 39 235 274 — — — — — — Net other comprehensive income (loss) (2,535 ) (42 ) (2,577 ) 469 (53 ) 416 1,146 1,127 2,273 Balance, end of period $ (2,363 ) $ 1,032 $ (1,331 ) $ 172 $ 1,074 $ 1,246 $ (297 ) $ 1,127 $ 830 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Certain directors and executive officers of the Company have loan and deposit accounts with the Bank. Such loans and deposits were made in the ordinary course of business on substantially the same terms, including interest rates, as those prevailing at the time for comparable transactions with outsiders. As of December 31, 2018 , the Bank had four loans outstanding to directors totaling $11.1 million . As of December 31, 2018 , the Bank had deposits outstanding from directors, executive officers and their related interests totaling $20.8 million . During the years ended December 31, 2018 , 2017 and 2016 , the Bank obtained services from affiliated companies of certain directors in the normal course of business as outlined below: (Dollars in thousands) Years Ended December 31, Related Party Affiliation Nature of Transaction 2018 2017 2016 Voyager Jet Center Owned by a director Aircraft charter $ 145 $ 109 $ 104 Total $ 145 $ 109 $ 104 |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES | CONTINGENT LIABILITIES The Company is not aware of any material unasserted claims. In the opinion of management, there are no potential claims that would have a material adverse effect on the Company’s financial position, liquidity or results of operations. |
Condensed Parent Company Only F
Condensed Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS | CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS The following condensed statements of financial condition of the parent company as of December 31, 2018 and 2017 , and the related condensed statements of income and cash flows for the years ended December 31, 2018 , 2017 and 2016 , should be read in conjunction with our Consolidated Financial Statements and related notes: CONDENSED STATEMENTS OF FINANCIAL CONDITION PARENT COMPANY ONLY December 31, (Dollars in thousands) 2018 2017 ASSETS Cash and cash equivalents $ 3,561 $ 3,986 Equity securities 12,661 8,635 Investment in subsidiaries 504,711 418,189 Prepaid expenses and other assets 1,648 541 Total assets $ 522,581 $ 431,351 LIABILITIES AND SHAREHOLDERS’ EQUITY Borrowings, net $ 39,166 $ 40,913 Other accrued expenses and other liabilities 4,061 1,367 Shareholders’ equity 479,354 389,071 Total liabilities and shareholders’ equity $ 522,581 $ 431,351 CONDENSED STATEMENTS OF INCOME PARENT COMPANY ONLY Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Interest income $ 284 $ 279 $ 301 Dividends received from subsidiaries 3,000 3,000 23,100 Total interest and dividend income 3,284 3,279 23,401 Interest expense 2,334 2,305 2,215 Net interest income 950 974 21,186 Non-interest income (loss) (774 ) — — Non-interest expense 749 371 370 Income (loss) before income taxes and undisbursed income of subsidiaries (573 ) 603 20,816 Income tax expense (benefit) (490 ) (251 ) (877 ) Income (loss) before undisbursed income of subsidiaries (83 ) 854 21,693 Undisbursed income of subsidiaries 54,507 37,134 6,948 Net income $ 54,424 $ 37,988 $ 28,641 CONDENSED STATEMENTS OF CASH FLOWS PARENT COMPANY ONLY Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Cash Flows from Operating Activities: Net income $ 54,424 $ 37,988 $ 28,641 Adjustments to reconcile net income to net cash provided by operating activities: Undisbursed income of subsidiaries (54,507 ) (37,134 ) (6,948 ) Unrealized loss on equity securities 775 — — Amortization of deferred financing costs 203 203 202 Increase (decrease) in accrued interest payable (19 ) 19 — Decrease (increase) in other assets (784 ) 238 (913 ) Increase (decrease) in other liabilities 2,729 (777 ) 776 Net cash provided by operating activities 2,821 537 21,758 Cash Flows from Investing Activities: Purchase of equity securities (5,224 ) (267 ) (285 ) Net payments for investments in subsidiaries (26,335 ) (200 ) (13,030 ) Net cash used in investing activities (31,559 ) (467 ) (13,315 ) Cash Flows from Financing Activities: Net proceeds from issuance of preferred stock 38,468 — — Net increase (decrease) in line of credit advances (1,950 ) 6,200 — Net proceeds from exercise of stock options 1,667 1,663 2,674 Cancellation of stock options (945 ) — (6,200 ) Purchase of treasury stock (6,807 ) (8,675 ) (5,125 ) Dividends paid on preferred stock (2,120 ) — — Net cash provided by (used in) financing activities 28,313 (812 ) (8,651 ) Net change in cash and cash equivalents (425 ) (742 ) (208 ) Cash and cash equivalents at beginning of year 3,986 4,728 4,936 Cash and cash equivalents at end of year $ 3,561 $ 3,986 $ 4,728 |
Segments
Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENTS | SEGMENTS The Company operates two reportable segments: Bank and Investment Management. • The Bank segment provides commercial banking services to middle-market businesses and private banking services to high-net-worth individuals through the TriState Capital Bank subsidiary. • The Investment Management segment provides advisory and sub-advisory investment management services primarily to institutional investors, mutual funds and individual investors through the Chartwell Investment Partners, LLC subsidiary. It also supports 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 years ended December 31, 2018 and 2017 . The information provided under the caption “Parent and Other” represents general operating activity of the Company not considered to be a reportable segment, which includes parent company activity as well as eliminations and adjustments that are necessary for purposes of reconciliation to the consolidated amounts. (Dollars in thousands) December 31, 2018 December 31, 2017 Assets: Bank $ 5,947,165 $ 4,691,760 Investment management 92,894 84,714 Parent and other (4,404 ) 1,423 Total assets $ 6,035,655 $ 4,777,897 Year Ended December 31, 2018 (Dollars in thousands) Bank Investment Parent Consolidated Income statement data: Interest income $ 199,510 $ — $ 276 $ 199,786 Interest expense 84,055 — 2,327 86,382 Net interest income (loss) 115,455 — (2,051 ) 113,404 Provision (credit) for loan losses (205 ) — — (205 ) Net interest income (loss) after provision for loan losses 115,660 — (2,051 ) 113,609 Non-interest income: Investment management fees — 37,939 (292 ) 37,647 Net loss on the sale and call of debt securities (70 ) — — (70 ) Other non-interest income (loss) 11,112 1 (773 ) 10,340 Total non-interest income 11,042 37,940 (1,065 ) 47,917 Non-interest expense: Intangible amortization expense — 1,968 — 1,968 Change in fair value of acquisition earn out — (218 ) — (218 ) Other non-interest expense 67,190 31,760 457 99,407 Total non-interest expense 67,190 33,510 457 101,157 Income (loss) before tax 59,512 4,430 (3,573 ) 60,369 Income tax expense (benefit) 5,856 579 (490 ) 5,945 Net income (loss) $ 53,656 $ 3,851 $ (3,083 ) $ 54,424 Year Ended December 31, 2017 (Dollars in thousands) Bank Investment Parent Consolidated Income statement data: Interest income $ 134,029 $ — $ 266 $ 134,295 Interest expense 40,649 — 2,293 42,942 Net interest income (loss) 93,380 — (2,027 ) 91,353 Provision (credit) for loan losses (623 ) — — (623 ) Net interest income (loss) after provision for loan losses 94,003 — (2,027 ) 91,976 Non-interest income: Investment management fees — 37,309 (209 ) 37,100 Net gain on the sale and call of debt securities 310 — — 310 Other non-interest income 9,554 2 — 9,556 Total non-interest income 9,864 37,311 (209 ) 46,966 Non-interest expense: Intangible amortization expense — 1,851 — 1,851 Other non-interest expense 59,073 30,387 161 89,621 Total non-interest expense 59,073 32,238 161 91,472 Income (loss) before tax 44,794 5,073 (2,397 ) 47,470 Income tax expense (benefit) 9,211 522 (251 ) 9,482 Net income (loss) $ 35,583 $ 4,551 $ (2,146 ) $ 37,988 Year Ended December 31, 2016 (Dollars in thousands) Bank Investment Parent Consolidated Income statement data: Interest income $ 98,027 $ — $ 285 $ 98,312 Interest expense 21,300 — 2,199 23,499 Net interest income (loss) 76,727 — (1,914 ) 74,813 Provision for loan losses 838 — — 838 Net interest income (loss) after provision for loan losses 75,889 — (1,914 ) 73,975 Non-interest income: Investment management fees — 37,258 (223 ) 37,035 Net gain on the sale and call of debt securities 77 — — 77 Other non-interest income 9,393 3 — 9,396 Total non-interest income 9,470 37,261 (223 ) 46,508 Non-interest expense: Intangible amortization expense — 1,753 — 1,753 Change in fair value of acquisition earn out — (3,687 ) — (3,687 ) Other non-interest expense 52,676 27,905 147 80,728 Total non-interest expense 52,676 25,971 147 78,794 Income (loss) before tax 32,683 11,290 (2,284 ) 41,689 Income tax expense (benefit) 9,568 4,357 (877 ) 13,048 Net income (loss) $ 23,115 $ 6,933 $ (1,407 ) $ 28,641 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On January 17, 2019 , the Board declared a dividend payable of approximately $679,000 , or $0.42 per depositary share, on the Series A Preferred Stock, which is payable on April 1, 2019 , to preferred shareholders of record as of the close of business on March 18, 2019 . |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANICAL DATA | SELECTED QUARTERLY FINANCIAL DATA The tables below summarize our unaudited quarterly financial information for the years ended December 31, 2018 and 2017 : 2018 (Dollars in thousands, except per share data) Fourth Third Second First Income statement data: (unaudited) Interest income $ 58,162 $ 52,424 $ 47,784 $ 41,416 Interest expense 28,630 23,605 18,993 15,154 Net interest income 29,532 28,819 28,791 26,262 Provision (credit) for loan losses (581 ) (234 ) 415 195 Net interest income after provision for loan losses 30,113 29,053 28,376 26,067 Non-interest income: Investment management fees 9,225 9,828 9,686 8,908 Net gain (loss) on the sale and call of debt securities (76 ) — 1 5 Other non-interest income 2,426 2,923 2,815 2,176 Total non-interest income 11,575 12,751 12,502 11,089 Non-interest expense: Intangible amortization expense 503 502 502 461 Change in fair value of acquisition earn out (218 ) — — — Other non-interest expense 26,018 25,184 24,816 23,389 Total non-interest expense 26,303 25,686 25,318 23,850 Income before tax 15,385 16,118 15,560 13,306 Income tax expense 265 1,807 968 2,905 Net income $ 15,120 $ 14,311 $ 14,592 $ 10,401 Preferred stock dividends on Series A 679 679 762 — Net income available to common shareholders $ 14,441 $ 13,632 $ 13,830 $ 10,401 Earnings per common share: Basic $ 0.52 $ 0.49 $ 0.50 $ 0.38 Diluted $ 0.50 $ 0.47 $ 0.48 $ 0.36 2017 (Dollars in thousands, except per share data) Fourth Third Second First Income statement data: (unaudited) Interest income $ 37,868 $ 35,575 $ 32,115 $ 28,737 Interest expense 13,069 11,970 10,082 7,821 Net interest income 24,799 23,605 22,033 20,916 Provision (credit) for loan losses (1,665 ) 283 516 243 Net interest income after provision for loan losses 26,464 23,322 21,517 20,673 Non-interest income: Investment management fees 9,416 9,214 9,130 9,340 Net gain (loss) on the sale and call of debt securities 56 15 241 (2 ) Other non-interest income 2,667 2,477 2,341 2,071 Total non-interest income 12,139 11,706 11,712 11,409 Non-interest expense: Intangible amortization expense 463 463 462 463 Other non-interest expense 25,255 22,349 21,322 20,695 Total non-interest expense 25,718 22,812 21,784 21,158 Income before tax 12,885 12,216 11,445 10,924 Income tax expense 842 2,184 3,024 3,432 Net income $ 12,043 $ 10,032 $ 8,421 $ 7,492 Preferred stock dividends on Series A — — — — Net income available to common shareholders $ 12,043 $ 10,032 $ 8,421 $ 7,492 Earnings per common share: Basic $ 0.44 $ 0.36 $ 0.31 $ 0.27 Diluted $ 0.42 $ 0.35 $ 0.29 $ 0.26 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of operation | NATURE OF OPERATION TriState Capital Holdings, Inc. (“we,” “us,” “our,” the “holding company,” the “parent company,” 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 adviser; and Chartwell TSC Securities Corp. (“CTSC Securities”), a registered broker/dealer. The Bank was established to serve the commercial banking needs of middle-market businesses and private banking needs of high-net-worth individuals. Chartwell provides investment management services primarily to institutional investors, mutual funds and individual investors. CTSC Securities supports marketing efforts for the proprietary investment products provided by Chartwell, including shares of mutual funds advised and/or administered by Chartwell. 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 adviser regulated by the Securities and Exchange Commission (“SEC”). CTSC Securities is regulated by the SEC and Financial Industry Regulatory Authority (“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 conducts business through its office located in Pittsburgh, Pennsylvania. |
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 different than those anticipated in the estimates, which could materially affect the financial results of our operations and financial condition. 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 their evaluation for impairment, and deferred income taxes and its related recoverability, each of which is discussed later in this section. |
Consolidation | CONSOLIDATION Our 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 (established in 2011 to hold and manage the foreclosed properties for the Bank), after elimination of inter-company accounts and transactions. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) and disclosures, considered necessary for the fair presentation of the accompanying consolidated financial statements, have been included. |
Cash and cash equivalents | CASH AND CASH EQUIVALENTS For purposes of reporting cash flows, the Company has defined cash and cash equivalents as cash, interest-earning deposits with other institutions, federal funds sold, and short-term investments that have an original maturity of 90 days or less. |
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, which includes an initial measurement of any contingent earn out, and the fair value of the net assets acquired (including identified intangibles) is recorded as goodwill. A change in the initial estimate of any contingent earn out amounts is recorded to non-interest expense in the consolidated statements of income. |
Investment securities | INVESTMENT SECURITIES The Company’s investments are classified as either: (1) held-to-maturity, which are debt securities that the Company intends to hold until maturity and are reported at amortized cost; (2) trading, which are debt 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 non-interest income; (3) available-for-sale, which are debt 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), on an after-tax basis; or (4) equity securities, which are reported at fair value, with unrealized gains and losses included in non-interest income. The cost of securities sold is determined on a specific identification basis. Amortization of premiums and accretion of discounts are recorded to interest income on investments over the estimated 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 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 (“FHLB”) of Pittsburgh. 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 were recoverable at par value as of December 31, 2018 and 2017 . Cash and stock dividends are reported as interest income on investments 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 estimated 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 on 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 a 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, at which time the loan is placed on non-accrual status. All accrued and unpaid interest on such loans is then reversed. The 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, such as 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., loans due upon demand) 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 owned, other than bank premises, is recorded at fair value less estimated selling costs. 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 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 recorded in the consolidated statements of income. Loans are charged off 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. In management’s judgment, the allowance was appropriate to cover probable losses inherent in the loan portfolio as of December 31, 2018 and 2017 . 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 two components of the allowance for loan losses represent estimates of general reserves based upon Accounting Standards Codification (“ASC”) Topic 450, Contingencies; and specific reserves based upon ASC Topic 310, Receivables. ASC Topic 450 applies to homogeneous loan pools such as commercial loans, consumer lines of credit and residential mortgages that are not individually evaluated for impairment. ASC Topic 310 is applied to commercial and consumer loans that are individually evaluated for impairment. In management’s opinion, a loan is impaired, based upon current information and events, 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 of general reserves management considers numerous factors, including historical charge-offs and subsequent recoveries. Management also considers qualitative factors that influence our credit quality, such as delinquency and non-performing loan trends, changes in loan underwriting guidelines and credit policies, and 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. Management bases the computation of the allowance for loan losses of general reserves 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: private banking, commercial and industrial, and commercial real estate. 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 received on a quarterly basis. Certain incremental costs incurred to acquire some of our investment management contracts are deferred and amortized to non-interest expense over the estimated life of the contract. 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. Bad debt expense is recorded to other non-interest expense on the consolidated statements of income and the allowance for uncollectible accounts is recorded to investment management fees receivable, net on the consolidated statements of financial position. 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 $322,000 of bad debt expense associated with a single relationship recorded for the year ended December 31, 2017 , which was charged off. There was no bad debt expense recorded for the years ended December 31, 2018 and 2016 . There was no allowance for uncollectible accounts recorded as of December 31, 2018 and 2017 . |
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. Goodwill is not amortized and is subject to at least annual assessments for impairment by applying a fair value based test. The Company reviews goodwill annually and again at any quarter-end if a material event occurs during the quarter that may affect goodwill. If goodwill testing is required, an assessment of qualitative factors can be completed before performing the two step goodwill impairment test. If an assessment of qualitative factors determines it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then the two step goodwill impairment test is not required. Goodwill is evaluated for potential impairment by determining if the fair value has fallen below carrying value. Other intangible assets represent purchased assets that may lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. The Company has determined that certain of its acquired mutual fund client relationships meet the criteria to be considered indefinite-lived assets because the Company expects both the renewal of these contracts and the cash flows generated by these assets to continue indefinitely. Accordingly, the Company does not amortize these intangible assets, but instead reviews these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived assets may be impaired. Each reporting period, the Company assesses whether events or circumstances have occurred which indicate that the indefinite life criteria are no longer met. If the indefinite life criteria are no longer met, the Company would assess whether the carrying value of these assets exceeds its fair value, an impairment loss would be recorded in an amount equal to any such excess and these assets would be reclassified to finite-lived. Other intangible assets that the Company has determined to have finite lives, such as trade name, client lists and non-compete agreements are amortized over their estimated useful lives. These finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from four to 25 years. Finite-lived intangibles are evaluated for impairment on an annual basis or more frequently whenever events or circumstances occur indicating that the carrying amount may not be recoverable. |
Office properties and equipment | OFFICE PROPERTIES AND EQUIPMENT Office properties and equipment are stated at cost less accumulated depreciation. Depreciation is computed utilizing 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 10 years. Repairs and maintenance are charged to expense as incurred, while improvements that extend the useful life are capitalized and depreciated to non-interest 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. Interest on deposits is accrued and charged to interest expense daily and is paid or credited in accordance with the terms of the respective accounts. |
Borrowings | BORROWINGS The Company records FHLB advances, line of credit borrowings and subordinated notes payable at their principal amount net of debt issuance costs. 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. |
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. The Company considers uncertain tax positions that it has taken or expects to take on a tax return. Any interest and penalties related to unrecognized tax benefits would be recognized in income tax expense in the consolidated statements of income. |
Earnings per common share | EARNINGS PER COMMON SHARE Earnings per common share (“EPS”) is computed using the two-class method, where net income is reduced by dividends declared on our preferred stock to derive net income available to common shareholders. Basic 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 upon the exercise of stock options and the vesting of restricted stock awards granted utilizing the treasury stock method. |
Stock-based compensation | STOCK-BASED COMPENSATION The Company accounts for its stock-based compensation awards based on estimated fair values of stock-based awards made to employees and directors. Compensation cost for all stock-based payments is based on the estimated grant-date fair value. The value of the portion of the award that is ultimately expected to vest is included in stock-based compensation expense 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. |
Derivatives and hedging activities | DERIVATIVES AND HEDGING ACTIVITIES All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities. 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 (loss). When the cash flows associated with the hedged item are realized, the gain or loss included in accumulated other comprehensive income (loss) is recognized in the consolidated statements of income. The Company also has interest rate 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 must be recorded for certain assets and liabilities every reporting period on a recurring basis or, under certain circumstances, on a non-recurring basis. |
Accumulated other comprehensive income (loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Unrealized holding gains and the non-credit component of unrealized losses on the Company’s debt 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 debt 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 cash flow hedge 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. Income tax effects in accumulated other comprehensive income are released as investments are sold or matured and as liabilities are extinguished. |
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 October 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) ASU 2018-16, which adds the Overnight Index Swap (“OIS”) rate based on the Secured Overnight Financing Rate (“SOFR”) as a benchmark interest rate for hedge accounting purposes. Entities that have not yet adopted ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , must adopt ASU 2018-16 concurrent with ASU 2017-12, which is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2018 . Early adoption is permitted, including adoption in an interim period, if an entity has already adopted ASU 2017-12. The adoption of this standard on January 1, 2019 , did not have a material impact on the Company’s consolidated financial statements. In August 2018, FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820),” which aims to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing fair value measurement disclosures. This ASU is effective for all entities for annual and interim periods in fiscal years beginning after December 15, 2019 . Retrospective adoption is required except for the following changes, which are required to be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption: (1) changes in unrealized gains and losses included in other comprehensive income for Level 3 instruments; (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements; and (3) the narrative description of measurement uncertainty. Early adoption is permitted. An entity may early adopt any eliminated or modified disclosure requirements and delay adoption of the additional disclosure requirements until their effective date. The Company is currently evaluating the impact this standard will have on our results of operations and financial position. In June 2018, the FASB issued ASU 2018-07, “Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which more closely aligns the accounting for employee and nonemployee share-based payments. This standard is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2018 . Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The adoption of this standard on January 1, 2019 , did not have a material impact on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” to address a narrow-scope financial reporting issue that arose as a consequence of the change in the tax law. The standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This standard is effective for all entities for fiscal years beginning after December 15, 2018 , and interim periods within those fiscal years with early adoption permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The changes could be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company early adopted this standard on January 1, 2018 , and elected to reclassify the effect of the change in the U.S. federal corporate income tax rate from accumulated other comprehensive income to retained earnings of $274,000 , which is reflected in the Consolidated Statements of Changes in Shareholders’ Equity in the period of adoption. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which changes the recognition and presentation requirements of hedge accounting, including eliminating the requirement to separately measure and report hedge ineffectiveness and presenting all items that affect earnings in the same income statement line item as the hedged item. The standard also provides new alternatives for: applying hedge accounting to additional hedging strategies; measuring the hedged item in fair value hedges of interest rate risk; reducing the cost and complexity of applying hedge accounting by easing the requirements for effectiveness testing, hedge documentation and application of the critical terms match method; and reducing the risk of material error correction if a company applies the shortcut method inappropriately. This standard is effective for public business entities, for annual and interim periods in fiscal years beginning after December 15, 2018 . The adoption of this standard on January 1, 2019 , did not have a material impact on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities,” which shortens the premium amortization period for purchased non-contingently callable debt securities. Shortening the amortization period is generally expected to more closely align the interest income recognition with the expectations incorporated in the market pricing on the underlying securities. This standard is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2018 . The adoption of this standard on January 1, 2019 , did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which requires an entity to no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. The changes are effective for public business entities, for annual and interim periods in fiscal years beginning after December 15, 2019 . All entities may early adopt the standard for goodwill impairment tests with measurement dates after January 1, 2017. The Company is currently evaluating the impact this standard will have on our results of operations and financial position. In June 2016, the FASB issued 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 . Management created a formal working group, consisting of key stakeholders from finance, risk and credit, to govern the implementation of this standard. We are in the process of designing current expected credit loss estimation methodologies and collecting data to be able to comply with this standard. We have engaged a third party software provider to assist during our design and implementation phase. The Company is currently evaluating the impact this standard will have on our results of operations, financial position and related disclosure. In February 2016, the FASB issued ASU 2016-02, “Leases,” which, among other things, requires lessees to recognize most leases on the balance sheet and disclose key information about leasing arrangements. This will result in an increase to a company’s reported assets and liabilities. Lessor accounting remains substantially similar to current U.S. GAAP. ASU 2016-02 supersedes Topic 840, “ Leases” . This standard 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 standard provides for a modified retrospective transition approach requiring lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption with the option to elect certain practical expedients. The Company’s operating leases primarily relate to our six office spaces and other office equipment. We have completed our assessment of this standard and based on our current leases, we will be recognizing a lease liability and related right-of-use asset on our balance sheet, with no impact on our income statement compared to the current lease accounting model. The Company adopted this standard on January 1, 2019 , and has elected to apply it as of the beginning of the period of adoption. 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 makes targeted amendments to the guidance for recognition, measurement, presentation and disclosure of financial instruments. This standard is effective for public business entities for interim and annual periods in fiscal years beginning after December 15, 2017 . The Company was impacted by two main provisions of this standard as follows. First, this standard requires a public entity to use the exit price notion to measure fair value of financial instruments for disclosure purposes. Accordingly, the Company refined the calculation used to determine the disclosed fair value of loans held-for-investment as part of adopting this standard. The refined calculation did not have a significant impact on our fair value disclosures. Second, this standard requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income. This standard requires a cumulative effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities previously recognized in accumulated other comprehensive income. The Company adopted this standard on January 1, 2018 , which resulted in a cumulative effect adjustment from accumulated other comprehensive income to retained earnings of $286,000 , which is reflected in the Consolidated Statements of Changes in Shareholders’ Equity in the period of adoption. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” This standard implements a common approach 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. This standard establishes a five-step model that entities must follow to recognize revenue. This update is effective for annual periods and interim periods in fiscal years beginning after December 15, 2017 , for public business entities. A significant amount of the Company’s revenues are derived from net interest income on financial assets and liabilities, which are excluded from the scope of the amended guidance. The Company completed its assessment of revenue streams and associated incremental costs of contracts affected by the standard. The Company’s adoption of this standard did not change the method in which we recognize revenue. This standard also requires that certain incremental costs incurred to acquire some of our investment management contracts be capitalized and deferred over the estimated life of the contract. The adoption of this standard altered the timing, measurement and recognition of these costs in the income statement. The Company adopted this standard on January 1, 2018 , utilizing the modified retrospective approach with a cumulative positive adjustment to retained earnings of $533,000 . The majority of our revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as our loans, derivatives and investment securities, as these activities are subject to other aspects of GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC Topic 606, which are presented in our consolidated statements of income as components of non-interest income, are as follows: • Investment management fees - this represents monthly fees due from investment management customers as consideration for managing the customers’ assets. Revenue is recognized when our performance obligation is completed each month. • Service charges on deposits - this represents general service fees for monthly account maintenance and activity-based or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed, which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. • Commitment and other loan fees - this represents letters of credit fees and unused loan commitment fees. Revenue is recognized upon the issuance or renewal of a letter of credit and monthly for unused commitment fees. Other non-interest income primarily includes items such as income on swap fees, BOLI, gains on sale of loans, and other miscellaneous items, which are not subject to the requirements of ASC Topic 606, and no modification to these items was required under this standard. |
Revenue Recognition | The majority of our revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as our loans, derivatives and investment securities, as these activities are subject to other aspects of GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC Topic 606, which are presented in our consolidated statements of income as components of non-interest income, are as follows: • Investment management fees - this represents monthly fees due from investment management customers as consideration for managing the customers’ assets. Revenue is recognized when our performance obligation is completed each month. • Service charges on deposits - this represents general service fees for monthly account maintenance and activity-based or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed, which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. • Commitment and other loan fees - this represents letters of credit fees and unused loan commitment fees. Revenue is recognized upon the issuance or renewal of a letter of credit and monthly for unused commitment fees. Other non-interest income primarily includes items such as income on swap fees, BOLI, gains on sale of loans, and other miscellaneous items, which are not subject to the requirements of ASC Topic 606, and no modification to these items was required under this standard. |
Reclassification | RECLASSIFICATION Certain items previously reported have been reclassified to conform with the current year’s reporting presentation and are considered immaterial. |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of business acquisitions | The following table summarizes total consideration at closing and assets acquired in the Columbia acquisition as of April 6, 2018 : (Dollars in thousands) Columbia Acquisition Consideration paid: Cash $ 1,335 Estimated earn out, at closing 3,138 Fair value of total consideration, at closing $ 4,473 Intangible assets acquired 1,537 Goodwill 2,936 Total net assets purchased $ 4,473 |
Schedule of acquired finite-lived intangible assets | The following table shows the amount of other intangible assets acquired through the Columbia acquisition as of April 6, 2018 , by class and estimated useful life. (Dollars in thousands) Gross Amount Weighted Average Estimated Useful Life Client Relationships: Sub-advisory client list 115 132 Separate managed accounts client list 1,365 108 Non-compete agreements 57 48 Total finite-lived intangibles $ 1,537 108 |
Business acquisition, pro forma | The following table presents unaudited pro forma financial information, which combines the historical consolidated statements of income of the Company and the contracts acquired from Columbia to give effect to the acquisition as if it had occurred on January 1, 2017 , for the periods indicated. Pro Forma Years Ended December 31, (Dollars in thousands, except per share data) 2018 2017 Total revenue $ 161,997 $ 140,806 Net income available to common shareholders $ 52,401 $ 38,601 Earnings per common share: Basic $ 1.90 $ 1.40 Diluted $ 1.82 $ 1.34 Total revenue is defined as net interest income and non-interest income, excluding gains and losses on the sale and call of debt securities. Pro forma adjustments include intangible amortization expense and income tax expense. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investment securities available-for-sale | Debt securities available-for-sale and held-to-maturity were comprised of the following: December 31, 2018 (Dollars in thousands) Amortized Gross Unrealized Gross Unrealized Estimated Debt securities available-for-sale: Corporate bonds $ 152,691 $ 33 $ 1,661 $ 151,063 Trust preferred securities 17,964 — 1,115 16,849 Non-agency collateralized loan obligations 393 — 3 390 Agency collateralized mortgage obligations 33,680 42 4 33,718 Agency mortgage-backed securities 21,575 37 348 21,264 Agency debentures 9,994 67 49 10,012 Total debt securities available-for-sale 236,297 179 3,180 233,296 Debt securities held-to-maturity: Corporate bonds 27,184 353 22 27,515 Agency debentures 141,575 472 34 142,013 Municipal bonds 22,963 11 61 22,913 Agency mortgage-backed securities 4,409 — 27 4,382 Total debt securities held-to-maturity 196,131 836 144 196,823 Total debt securities $ 432,428 $ 1,015 $ 3,324 $ 430,119 December 31, 2017 (Dollars in thousands) Amortized Gross Unrealized Gross Unrealized Estimated Debt securities available-for-sale: Corporate bonds $ 61,616 $ 216 $ 143 $ 61,689 Trust preferred securities 17,840 741 — 18,581 Non-agency collateralized loan obligations 811 — 6 805 Agency collateralized mortgage obligations 38,873 25 76 38,822 Agency mortgage-backed securities 19,007 96 150 18,953 Total debt securities available-for-sale 138,147 1,078 375 138,850 Debt securities held-to-maturity: Corporate bonds 32,189 785 33 32,941 Agency debentures 1,984 3 — 1,987 Municipal bonds 25,102 122 11 25,213 Total debt securities held-to-maturity 59,275 910 44 60,141 Total debt securities $ 197,422 $ 1,988 $ 419 $ 198,991 |
Schedule of investment securities held-to-maturity | Debt securities available-for-sale and held-to-maturity were comprised of the following: December 31, 2018 (Dollars in thousands) Amortized Gross Unrealized Gross Unrealized Estimated Debt securities available-for-sale: Corporate bonds $ 152,691 $ 33 $ 1,661 $ 151,063 Trust preferred securities 17,964 — 1,115 16,849 Non-agency collateralized loan obligations 393 — 3 390 Agency collateralized mortgage obligations 33,680 42 4 33,718 Agency mortgage-backed securities 21,575 37 348 21,264 Agency debentures 9,994 67 49 10,012 Total debt securities available-for-sale 236,297 179 3,180 233,296 Debt securities held-to-maturity: Corporate bonds 27,184 353 22 27,515 Agency debentures 141,575 472 34 142,013 Municipal bonds 22,963 11 61 22,913 Agency mortgage-backed securities 4,409 — 27 4,382 Total debt securities held-to-maturity 196,131 836 144 196,823 Total debt securities $ 432,428 $ 1,015 $ 3,324 $ 430,119 December 31, 2017 (Dollars in thousands) Amortized Gross Unrealized Gross Unrealized Estimated Debt securities available-for-sale: Corporate bonds $ 61,616 $ 216 $ 143 $ 61,689 Trust preferred securities 17,840 741 — 18,581 Non-agency collateralized loan obligations 811 — 6 805 Agency collateralized mortgage obligations 38,873 25 76 38,822 Agency mortgage-backed securities 19,007 96 150 18,953 Total debt securities available-for-sale 138,147 1,078 375 138,850 Debt securities held-to-maturity: Corporate bonds 32,189 785 33 32,941 Agency debentures 1,984 3 — 1,987 Municipal bonds 25,102 122 11 25,213 Total debt securities held-to-maturity 59,275 910 44 60,141 Total debt securities $ 197,422 $ 1,988 $ 419 $ 198,991 |
Interest income on investment securities | Interest income on investment securities was as follows: Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Taxable interest income $ 9,062 $ 4,896 $ 4,213 Non-taxable interest income 420 452 452 Dividend income 1,201 869 778 Total interest income on investments $ 10,683 $ 6,217 $ 5,443 |
Schedule of contractual maturities of debt securities | As of December 31, 2018 , the contractual maturities of the debt securities were: December 31, 2018 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Estimated Amortized Estimated Due in one year or less $ 17,187 $ 17,120 $ 2,130 $ 2,129 Due from one to five years 114,241 113,788 52,385 52,419 Due from five to ten years 31,215 29,671 105,720 106,186 Due after ten years 73,654 72,717 35,896 36,089 Total debt securities $ 236,297 $ 233,296 $ 196,131 $ 196,823 |
Schedule of proceeds and realized gains and losses from investments securities | Proceeds from the sale and call of debt securities available-for-sale and held-to-maturity and related realized gains and losses were: Available-for-Sale Held-to-Maturity Years Ended December 31, Years Ended December 31, (Dollars in thousands) 2018 2017 2016 2018 2017 2016 Proceeds from sales $ 31,306 $ 2,527 $ 4,691 $ — $ — $ — Proceeds from calls 6,129 21,675 2,000 1,000 3,000 2,500 Total proceeds $ 37,435 $ 24,202 $ 6,691 $ 1,000 $ 3,000 $ 2,500 Gross realized gains $ 51 $ 297 $ 34 $ 3 $ 15 $ 46 Gross realized losses 124 2 3 — — — Net realized gains (losses) $ (73 ) $ 295 $ 31 $ 3 $ 15 $ 46 |
Schedule of fair value and gross unrealized losses on investment equity securities | The following tables show the fair value and gross unrealized losses on temporarily impaired debt 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 December 31, 2018 and 2017 : December 31, 2018 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Debt securities available-for-sale: Corporate bonds $ 110,200 $ 789 $ 22,954 $ 872 $ 133,154 $ 1,661 Trust preferred securities 16,849 1,115 — — 16,849 1,115 Non-agency collateralized loan obligations — — 390 3 390 3 Agency collateralized mortgage obligations — — 3,015 4 3,015 4 Agency mortgage-backed securities 5,851 51 8,690 297 14,541 348 Agency debentures 3,487 49 — — 3,487 49 Total debt securities available-for-sale 136,387 2,004 35,049 1,176 171,436 3,180 Debt securities held-to-maturity: Corporate bonds 3,978 22 — — 3,978 22 Agency debentures 1,952 34 — — 1,952 34 Municipal bonds 16,105 51 2,110 10 18,215 61 Agency mortgage-backed securities 4,382 27 — — 4,382 27 Total debt securities held-to-maturity 26,417 134 2,110 10 28,527 144 Total temporarily debt impaired securities (1) $ 162,804 $ 2,138 $ 37,159 $ 1,186 $ 199,963 $ 3,324 (1) The number of investment positions with unrealized losses totaled 78 for available-for-sale securities and 29 for held-to-maturity securities. December 31, 2017 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Debt securities available-for-sale: Corporate bonds $ 29,995 $ 143 $ — $ — $ 29,995 $ 143 Non-agency collateralized loan obligations — — 805 6 805 6 Agency collateralized mortgage obligations 1,593 1 32,816 75 34,409 76 Agency mortgage-backed securities 2,960 10 9,437 140 12,397 150 Total debt securities available-for-sale 34,548 154 43,058 221 77,606 375 Debt securities held-to-maturity: Corporate bonds 2,406 33 — — 2,406 33 Municipal bonds 6,051 11 — — 6,051 11 Total debt securities held-to-maturity 8,457 44 — — 8,457 44 Total temporarily debt impaired securities (1) $ 43,005 $ 198 $ 43,058 $ 221 $ 86,063 $ 419 (1) The number of investment positions with unrealized losses totaled 28 for available-for-sale securities and eight for held-to-maturity securities. |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of loans receivable | Loans held-for-investment were comprised of the following: December 31, 2018 (Dollars in thousands) Private Commercial Commercial Total Loans held-for-investment, before deferred fees and costs $ 2,864,094 $ 781,836 $ 1,482,148 $ 5,128,078 Net deferred loan costs (fees) 5,449 3,484 (4,138 ) 4,795 Loans held-for-investment, net of deferred fees and costs 2,869,543 785,320 1,478,010 5,132,873 Allowance for loan losses (1,942 ) (5,764 ) (5,502 ) (13,208 ) Loans held-for-investment, net $ 2,867,601 $ 779,556 $ 1,472,508 $ 5,119,665 December 31, 2017 (Dollars in thousands) Private Commercial Commercial Total Loans held-for-investment, before deferred fees and costs $ 2,261,625 $ 667,028 $ 1,254,184 $ 4,182,837 Net deferred loan costs (fees) 4,112 656 (3,361 ) 1,407 Loans held-for-investment, net of deferred fees and costs 2,265,737 667,684 1,250,823 4,184,244 Allowance for loan losses (1,577 ) (8,043 ) (4,797 ) (14,417 ) Loans held-for-investment, net $ 2,264,160 $ 659,641 $ 1,246,026 $ 4,169,827 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Allowance for Loan Losses [Abstract] | |
Schedule of loans by credit quality indicator | The following tables present the recorded investment in loans by credit quality indicator: December 31, 2018 (Dollars in thousands) Private Commercial Commercial Total Pass $ 2,864,774 $ 767,540 $ 1,475,793 $ 5,108,107 Special mention 2,532 12,636 2,217 17,385 Substandard 2,237 5,144 — 7,381 Loans held-for-investment $ 2,869,543 $ 785,320 $ 1,478,010 $ 5,132,873 December 31, 2017 (Dollars in thousands) Private Commercial Commercial Total Pass $ 2,265,369 $ 639,987 $ 1,248,972 $ 4,154,328 Special mention — 24,882 1,851 26,733 Substandard 368 2,815 — 3,183 Loans held-for-investment $ 2,265,737 $ 667,684 $ 1,250,823 $ 4,184,244 |
Schedule of changes in allowance for loan losses | Changes in the allowance for loan losses were as follows for the years ended December 31, 2018 , 2017 and 2016 : Year Ended December 31, 2018 (Dollars in thousands) Private Commercial Commercial Total Balance, beginning of period $ 1,577 $ 8,043 $ 4,797 $ 14,417 Provision (credit) for loan losses 365 (1,275 ) 705 (205 ) Charge-offs — (2,068 ) — (2,068 ) Recoveries — 1,064 — 1,064 Balance, end of period $ 1,942 $ 5,764 $ 5,502 $ 13,208 Year Ended December 31, 2017 (Dollars in thousands) Private Commercial Commercial Total Balance, beginning of period $ 1,424 $ 12,326 $ 5,012 $ 18,762 Provision (credit) for loan losses 153 (556 ) (220 ) (623 ) Charge-offs — (4,302 ) — (4,302 ) Recoveries — 575 5 580 Balance, end of period $ 1,577 $ 8,043 $ 4,797 $ 14,417 Year Ended December 31, 2016 (Dollars in thousands) Private Commercial Commercial Total Balance, beginning of period $ 1,566 $ 11,064 $ 5,344 $ 17,974 Provision (credit) for loan losses (142 ) 4,723 (3,743 ) 838 Charge-offs — (4,258 ) — (4,258 ) Recoveries — 797 3,411 4,208 Balance, end of period $ 1,424 $ 12,326 $ 5,012 $ 18,762 |
Schedule of past due loans by class | The following tables present the age analysis of past due loans segregated by class of loan: December 31, 2018 (Dollars in thousands) 30-59 Days 60-89 Days Loans Past Total Current Total Private banking $ 1,040 $ 173 $ 2,000 $ 3,213 $ 2,866,330 $ 2,869,543 Commercial and industrial — — — — 785,320 785,320 Commercial real estate — — — — 1,478,010 1,478,010 Loans held-for-investment $ 1,040 $ 173 $ 2,000 $ 3,213 $ 5,129,660 $ 5,132,873 December 31, 2017 (Dollars in thousands) 30-59 Days 60-89 Days Loans Past Total Current Total Private banking $ 1,266 $ — $ — $ 1,266 $ 2,264,471 $ 2,265,737 Commercial and industrial — — — — 667,684 667,684 Commercial real estate 1,849 — — 1,849 1,248,974 1,250,823 Loans held-for-investment $ 3,115 $ — $ — $ 3,115 $ 4,181,129 $ 4,184,244 |
Schedule of 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 years ended December 31, 2018 , 2017 and 2016 : As of and for the Year Ended December 31, 2018 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Private banking $ 2,237 $ 2,421 $ 437 $ 2,293 $ — Commercial and industrial — — — — — Commercial real estate — — — — — Total with a related allowance recorded 2,237 2,421 437 2,293 — Without a related allowance recorded: Private banking — — — — — Commercial and industrial — — — — — Commercial real estate — — — — — Total without a related allowance recorded — — — — — Total: Private banking 2,237 2,421 437 2,293 — Commercial and industrial — — — — — Commercial real estate — — — — — Total $ 2,237 $ 2,421 $ 437 $ 2,293 $ — As of and for the Year Ended December 31, 2017 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Private banking $ 368 $ 541 $ 368 $ 438 $ — Commercial and industrial 2,815 3,135 2,139 3,067 — Commercial real estate — — — — — Total with a related allowance recorded 3,183 3,676 2,507 3,505 — Without a related allowance recorded: Private banking — — — — — Commercial and industrial 3,371 5,330 — 4,224 146 Commercial real estate — — — — — Total without a related allowance recorded 3,371 5,330 — 4,224 146 Total: Private banking 368 541 368 438 — Commercial and industrial 6,186 8,465 2,139 7,291 146 Commercial real estate — — — — — Total $ 6,554 $ 9,006 $ 2,507 $ 7,729 $ 146 As of and for the Year Ended December 31, 2016 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With a related allowance recorded: Private banking $ 517 $ 656 $ 517 $ 592 $ — Commercial and industrial 17,273 26,126 6,422 19,158 — Commercial real estate — — — — — Total with a related allowance recorded 17,790 26,782 6,939 19,750 — Without a related allowance recorded: Private banking — — — — — Commercial and industrial 471 487 — 485 26 Commercial real estate — — — — — Total without a related allowance recorded 471 487 — 485 26 Total: Private banking 517 656 517 592 — Commercial and industrial 17,744 26,613 6,422 19,643 26 Commercial real estate — — — — — Total $ 18,261 $ 27,269 $ 6,939 $ 20,235 $ 26 |
Schedule of allowance for credit losses and investment in loans by class | The following tables present the allowance for loan losses and recorded investment in loans by class: December 31, 2018 (Dollars in thousands) Private Commercial Commercial Total Allowance for loan losses: Individually evaluated for impairment $ 437 $ — $ — $ 437 Collectively evaluated for impairment 1,505 5,764 5,502 12,771 Total allowance for loan losses $ 1,942 $ 5,764 $ 5,502 $ 13,208 Loans held-for-investment: Individually evaluated for impairment $ 2,237 $ — $ — $ 2,237 Collectively evaluated for impairment 2,867,306 785,320 1,478,010 5,130,636 Loans held-for-investment $ 2,869,543 $ 785,320 $ 1,478,010 $ 5,132,873 December 31, 2017 (Dollars in thousands) Private Commercial Commercial Total Allowance for loan losses: Individually evaluated for impairment $ 368 $ 2,139 $ — $ 2,507 Collectively evaluated for impairment 1,209 5,904 4,797 11,910 Total allowance for loan losses $ 1,577 $ 8,043 $ 4,797 $ 14,417 Loans held-for-investment: Individually evaluated for impairment $ 368 $ 6,186 $ — $ 6,554 Collectively evaluated for impairment 2,265,369 661,498 1,250,823 4,177,690 Loans held-for-investment $ 2,265,737 $ 667,684 $ 1,250,823 $ 4,184,244 |
Schedule of loans classified as troubled debt restructuring | The following table provides additional information on the Company’s loans designated as troubled debt restructurings: (Dollars in thousands) December 31, December 31, Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring: Accruing interest $ — $ 3,371 Non-accrual 237 3,183 Total troubled debt restructurings $ 237 $ 6,554 |
Schedule of financial effects of modifications | The financial effects of our modifications made to loans newly designated as TDRs during the years ended December 31, 2017 and 2016 , were as follows: Year Ended December 31, 2017 (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 Private banking: Extended term, deferred principal and reduced interest rate 2 $ 433 $ 368 $ 433 $ 368 Total 2 $ 433 $ 368 $ 433 $ 368 Year Ended December 31, 2016 (Dollars in thousands) Count Recorded Investment at the time of Modification Current Recorded Investment Allowance for Loan Losses at the time of Modification Current Allowance for Loan Losses Commercial and industrial: Extended term and deferred principal 2 $ 11,098 $ 11,081 $ 2,354 $ 3,274 Total 2 $ 11,098 $ 11,081 $ 2,354 $ 3,274 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following table presents the change in goodwill for the years ended December 31, 2018 and 2017 : (Dollars in thousands) 2018 2017 Balance, beginning of period $ 38,724 $ 38,724 Additions 2,936 — Balance, end of period $ 41,660 $ 38,724 |
Schedule of changes in intangible assets | The following table presents the change in intangible assets for the years ended December 31, 2018 and 2017 : (Dollars in thousands) 2018 2017 Balance, beginning of period $ 26,634 $ 28,485 Additions 1,537 — Amortization (1,968 ) (1,851 ) Balance, end of period $ 26,203 $ 26,634 |
Schedule of intangible assets and total accumulated amortization by class | The following table presents the gross amount of intangible assets and total accumulated amortization by class: December 31, 2018 December 31, 2017 (Dollars in thousands) Gross Amount Accumulated Amortization Net Carrying Amount Gross Amount Accumulated Amortization Net Carrying Amount Trade name $ 4,040 $ (592 ) $ 3,448 $ 4,040 $ (418 ) $ 3,622 Client Relationships: Sub-advisory client list 11,645 (4,098 ) 7,547 11,530 (3,230 ) 8,300 Separate managed accounts client list 3,175 (779 ) 2,396 1,810 (505 ) 1,305 Other institutional client list 5,950 (2,614 ) 3,336 5,950 (2,074 ) 3,876 Non-compete agreements 522 (346 ) 176 465 (234 ) 231 Total finite-lived intangibles 25,332 (8,429 ) 16,903 23,795 (6,461 ) 17,334 Client Relationships: Mutual fund client relationships 9,300 — 9,300 9,300 — 9,300 Total intangibles assets $ 34,632 $ (8,429 ) $ 26,203 $ 33,095 $ (6,461 ) $ 26,634 |
Schedule of expected amortization expense for finite-lived intangibles assets | The following is a summary of the expected intangible amortization expense for finite-lived intangibles assets, assuming no new additions, for each of the five years following December 31, 2018 : (Dollars in thousands) Amount 2019 $ 2,008 2020 1,943 2021 1,911 2022 1,900 2023 1,897 Thereafter 7,244 Total finite-lived intangibles $ 16,903 |
Office Properties and Equipme_2
Office Properties and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Office Properties and Equipment [Abstract] | |
Schedule of office properties and equipment by major classification | The following is a summary of office properties and equipment by major classification as of December 31, 2018 and 2017 : December 31, (Dollars in thousands) 2018 2017 Furniture, fixtures and equipment $ 11,594 $ 9,812 Leasehold improvements 5,917 5,917 Total, at cost 17,511 15,729 Accumulated depreciation (12,385 ) (10,844 ) Net office properties and equipment $ 5,126 $ 4,885 |
Schedule of future minimum lease payments | At December 31, 2018 , future minimum lease payments were as follows: (Dollars in thousands) Amount 2019 $ 2,629 2020 2,579 2021 1,438 2022 906 2023 587 Thereafter 320 Total $ 8,459 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Schedule of deposits | As of December 31, 2018 and 2017 , deposits were comprised of the following: Interest Rate Range Weighted Average Balance (Dollars in thousands) December 31, December 31, December 31, December 31, December 31, Demand and savings accounts: Noninterest-bearing checking accounts — — — $ 258,268 $ 248,092 Interest-bearing checking accounts 0.05 to 3.02% 2.29% 1.42% 778,131 455,341 Money market deposit accounts 0.10 to 3.25% 2.45% 1.37% 2,781,870 2,289,789 Total demand and savings accounts 3,818,269 2,993,222 Certificates of deposit 1.15 to 3.22% 2.39% 1.40% 1,232,192 994,389 Total deposits $ 5,050,461 $ 3,987,611 Weighted average rate on interest-bearing accounts 2.41% 1.38% |
Schedule of maturities of time deposits | The contractual maturity of certificates of deposit was as follows: (Dollars in thousands) December 31, December 31, 12 months or less $ 992,468 $ 874,733 12 months to 24 months 181,456 96,766 24 months to 36 months 58,268 22,890 Total $ 1,232,192 $ 994,389 |
Schedule of interest expense on deposits by type | Interest expense on deposits for the years ended December 31, 2018 , 2017 and 2016 , was as follows: Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Interest-bearing checking accounts $ 11,440 $ 3,706 $ 813 Money market deposit accounts 45,106 22,350 11,376 Certificates of deposit 21,947 11,429 7,618 Total interest expense on deposits $ 78,493 $ 37,485 $ 19,807 Interest expense on borrowings for the years ended December 31, 2018 , 2017 and 2016 , was as follows: Years Ended December 31, (Dollars in thousands) 2018 2017 2016 FHLB borrowings $ 5,555 $ 3,152 $ 1,477 Line of credit borrowings 119 90 — Subordinated notes payable 2,215 2,215 2,215 Total interest expense on borrowings $ 7,889 $ 5,457 $ 3,692 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings | As of December 31, 2018 and 2017 , borrowings were comprised of the following: December 31, 2018 December 31, 2017 (Dollars in thousands) Interest Rate Ending Balance Maturity Date Interest Rate Ending Balance Maturity Date FHLB borrowings: FHLB line of credit 2.62% $ 250,000 5/1/2019 $ — Issued 12/31/2018 2.65% 65,000 1/2/2019 — Issued 10/10/2018 2.54% 50,000 1/8/2019 — Issued 12/29/2017 — 1.57% 195,000 1/2/2018 Issued 12/29/2017 — 1.66% 100,000 3/29/2018 Line of credit borrowings 5.47% 4,250 9/28/2019 4.56% 6,200 12/28/2018 Subordinated notes payable (net of debt issuance costs of $84 and $287, respectively) 5.75% 34,916 7/1/2019 5.75% 34,713 7/1/2019 Total borrowings, net $ 404,166 $ 335,913 |
Schedule of interest expense on borrowings by type | Interest expense on deposits for the years ended December 31, 2018 , 2017 and 2016 , was as follows: Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Interest-bearing checking accounts $ 11,440 $ 3,706 $ 813 Money market deposit accounts 45,106 22,350 11,376 Certificates of deposit 21,947 11,429 7,618 Total interest expense on deposits $ 78,493 $ 37,485 $ 19,807 Interest expense on borrowings for the years ended December 31, 2018 , 2017 and 2016 , was as follows: Years Ended December 31, (Dollars in thousands) 2018 2017 2016 FHLB borrowings $ 5,555 $ 3,152 $ 1,477 Line of credit borrowings 119 90 — Subordinated notes payable 2,215 2,215 2,215 Total interest expense on borrowings $ 7,889 $ 5,457 $ 3,692 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | The income tax provision reconciled to taxes computed at the statutory federal rate for the years ended December 31, 2018 , 2017 and 2016 , was as follows: Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Tax provision at statutory rate $ 12,677 $ 16,615 $ 14,591 Nondeductible expenses 595 294 279 Bank owned life insurance (360 ) (622 ) (629 ) Stock option exercises and cancellations (844 ) (674 ) (484 ) State tax expense, net of federal benefit 1,927 1,024 1,184 Impact of change in tax rates (332 ) (2,351 ) — Adjustments to prior year tax (133 ) 215 46 Tax exempt income, net of disallowed interest (79 ) (151 ) (162 ) Renewable energy tax credits (6,568 ) (4,629 ) (1,778 ) Low income housing tax credits (95 ) (260 ) (17 ) Historic tax credits (860 ) — — Other 17 21 18 Income tax provision $ 5,945 $ 9,482 $ 13,048 |
Schedule of components of income tax expense (benefit) | The income tax provision for the years ended December 31, 2018 , 2017 and 2016 , consisted of: Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Current income tax provision (benefit) - federal $ 2,712 $ (2,324 ) $ 7,781 Current income tax provision - state 2,999 696 1,592 Deferred tax provision - federal 904 10,050 3,322 Deferred tax provision (benefit) - state (670 ) 1,060 353 Income tax provision $ 5,945 $ 9,482 $ 13,048 |
Schedule of deferred tax assets and liabilities | The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2018 and 2017 , were as follows: December 31, (Dollars in thousands) 2018 2017 Deferred tax assets: Net operating loss - state $ 143 $ 200 Start-up expenses 47 65 Stock compensation 3,376 2,150 Compensation related accruals 3,976 779 Leasehold improvement 205 251 Allowance for loan loss 3,157 3,376 Long-term lease 158 205 Reserve for unfunded commitments 130 118 Supplemental executive retirement plan 871 824 Transaction costs 138 288 Earn out liability non-purchase accounting 298 374 Unrealized loss on investments and derivatives 733 — State bonus depreciation 1,326 — General business credits 4,424 — Other 325 180 Gross deferred tax assets 19,307 8,810 Deferred tax liabilities: Office properties and equipment (13,906 ) (6,947 ) Prepaid expenses (370 ) — Deferred loan costs (4,477 ) (2,447 ) Intangibles (93 ) (9 ) Goodwill (3,813 ) (3,003 ) State capital shares tax liability (161 ) (101 ) Unrealized gain on investments and derivatives — (455 ) Gross deferred tax liability (22,820 ) (12,962 ) Net deferred tax asset (liability) $ (3,513 ) $ (4,152 ) |
Schedule of changes in net deferred tax assets and liabilities | The change in the net deferred tax asset or liability for the years ended December 31, 2018 and 2017 , was detailed as follows: December 31, (Dollars in thousands) 2018 2017 Deferred tax provision $ (234 ) $ (11,110 ) Deferred tax impact from other comprehensive income 873 (246 ) Change in net deferred tax asset or liability $ 639 $ (11,356 ) |
Schedule of unrecognized tax benefits roll forward | A reconciliation of the beginning and ending gross amounts of unrecognized tax benefits for the years ended December 31, 2018 , 2017 and 2016 , was as follows: December 31, (Dollars in thousands) 2018 2017 2016 Beginning of year balance $ 744 $ 599 $ 353 Increases in prior period tax positions — 18 26 Decreases in prior period tax positions (250 ) — — Increases in current period tax positions 210 127 220 Settlements — — — End of year balance $ 704 $ 744 $ 599 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of compliance with regulatory capital requirements under banking regulations | The following tables set forth certain information concerning the Company’s and the Bank’s regulatory capital as of December 31, 2018 and 2017 : December 31, 2018 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 $ 426,066 10.86 % $ 313,789 8.00 % N/A N/A Bank $ 437,849 11.25 % $ 311,497 8.00 % $ 389,371 10.00 % Tier 1 risk-based capital ratio Company $ 414,808 10.58 % $ 235,342 6.00 % N/A N/A Bank $ 424,418 10.90 % $ 233,622 6.00 % $ 311,497 8.00 % Common equity tier 1 risk-based capital ratio Company $ 378,117 9.64 % $ 176,506 4.50 % N/A N/A Bank $ 424,418 10.90 % $ 175,217 4.50 % $ 253,091 6.50 % Tier 1 leverage ratio Company $ 414,808 7.28 % $ 227,851 4.00 % N/A N/A Bank $ 424,418 7.49 % $ 226,762 4.00 % $ 283,453 5.00 % December 31, 2017 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 $ 343,758 11.72 % $ 234,576 8.00 % N/A N/A Bank $ 348,378 11.99 % $ 232,392 8.00 % $ 290,490 10.00 % Tier 1 risk-based capital ratio Company $ 326,594 11.14 % $ 175,932 6.00 % N/A N/A Bank $ 337,656 11.62 % $ 174,294 6.00 % $ 232,392 8.00 % Common equity tier 1 risk-based capital ratio Company $ 326,594 11.14 % $ 131,949 4.50 % N/A N/A Bank $ 337,656 11.62 % $ 130,720 4.50 % $ 188,818 6.50 % Tier 1 leverage ratio Company $ 326,594 7.25 % $ 180,090 4.00 % N/A N/A Bank $ 337,656 7.55 % $ 178,979 4.00 % $ 223,723 5.00 % |
Stock Transactions (Tables)
Stock Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Schedule of preferred and common shares, activity | The table below shows the changes in the Company’s preferred and common shares outstanding during the periods indicated: Number of Number of Balance, December 31, 2015 — 28,056,195 Issuance of restricted common stock — 497,309 Forfeitures of restricted common stock — (13,121 ) Exercise of stock options — 250,000 Purchase of treasury stock — (374,729 ) Balance, December 31, 2016 — 28,415,654 Issuance of restricted common stock — 396,175 Forfeitures of restricted common stock — (14,637 ) Exercise of stock options — 170,550 Purchase of treasury stock — (376,641 ) Balance, December 31, 2017 — 28,591,101 Issuance of preferred stock 40,250 — Issuance of restricted common stock — 423,113 Forfeitures of restricted common stock — (27,250 ) Exercise of stock options — 155,250 Purchase of treasury stock — (263,540 ) Balance, December 31, 2018 40,250 28,878,674 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The computation of basic and diluted earnings per common share for the years ended December 31, 2018 , 2017 and 2016 , was as follows: Years Ended December 31, (Dollars in thousands, except per share data) 2018 2017 2016 Net income available to common shareholders $ 52,304 $ 37,988 $ 28,641 Weighted average common shares outstanding: Basic 27,583,519 27,550,833 27,593,725 Restricted stock - dilutive 780,357 649,956 260,799 Stock options - dilutive 469,520 510,533 504,628 Diluted 28,833,396 28,711,322 28,359,152 Earnings per common share: Basic $ 1.90 $ 1.38 $ 1.04 Diluted $ 1.81 $ 1.32 $ 1.01 |
Schedule of antidilutive securities excluded from computation of earnings per share | Years Ended December 31, 2018 2017 2016 Anti-dilutive shares (1) 7,000 27,000 125,500 (1) Includes stock options and/or restricted stock not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive. |
Stock-Based Compensation Prog_2
Stock-Based Compensation Programs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based payment award, stock options, valuation assumptions | The weighted average assumptions for stock options granted for the year ended December 31, 2016 , were as follows: December 31, 2016 Valuation Assumptions: Expected dividend yield 0.0 % Expected volatility 35.9 % Expected term (years) 6.9 Risk-free interest rate 1.7 % |
Schedule of share-based compensation, stock options, activity | Stock option activity during the periods indicated was as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Balance, December 31, 2015 2,559,393 $ 10.30 3.98 Granted 22,000 12.07 Exercised (250,000 ) 10.69 Forfeited (23,500 ) 11.77 Canceled (1,174,500 ) 10.00 Expired — — Balance, December 31, 2016 1,133,393 $ 10.53 5.76 Granted — — Exercised (170,550 ) 9.75 Forfeited (16,500 ) 10.30 Canceled — — Expired — — Balance, December 31, 2017 946,343 $ 10.67 5.01 Granted — — Exercised (155,250 ) 10.74 Forfeited (15,000 ) 11.74 Canceled (65,446 ) 10.30 Expired (16,500 ) 13.53 Balance, December 31, 2018 694,147 $ 10.60 4.26 Exercisable as of December 31, 2016 575,116 $ 10.01 4.32 Exercisable as of December 31, 2017 617,646 $ 10.16 4.25 Exercisable as of December 31, 2018 429,450 $ 9.97 3.49 |
Schedule of nonvested stock option activity | A summary of the status of the Company’s non-vested options as of and changes during the years ended December 31, 2018 , 2017 and 2016 , is presented below: Non-vested options: Number of Options Weighted Average Grant-Date Balance, December 31, 2015 769,643 $ 4.93 Granted 22,000 5.14 Vested (209,866 ) 3.73 Forfeited (23,500 ) 5.16 Balance, December 31, 2016 558,277 $ 4.95 Granted — — Vested (213,080 ) 4.97 Forfeited (16,500 ) 4.99 Balance, December 31, 2017 328,697 $ 4.94 Granted — — Vested (49,000 ) 4.82 Forfeited (15,000 ) 5.01 Balance, December 31, 2018 264,697 $ 4.96 |
Schedule of nonvested restricted stock activity | A summary of the status of the Company’s non-vested restricted shares as of and changes during the years ended December 31, 2018 , 2017 and 2016 , is presented below: Non-vested restricted shares: Number of Shares Weighted Average Grant-Date Balance, December 31, 2015 305,916 $ 10.55 Granted 497,309 12.96 Vested (6,799 ) 11.95 Forfeited (13,121 ) 11.76 Balance, December 31, 2016 783,305 $ 12.05 Granted 396,175 22.07 Vested (27,000 ) 10.66 Forfeited (14,637 ) 13.87 Balance, December 31, 2017 1,137,843 $ 15.54 Granted 423,113 23.90 Vested (180,694 ) 10.68 Forfeited (27,250 ) 20.61 Balance, December 31, 2018 1,353,012 $ 18.70 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated statements of financial condition as of December 31, 2018 and 2017 : Asset Derivatives Liability Derivatives as of December 31, 2018 as of December 31, 2018 (Dollars in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate products Other assets $ 1,384 Other liabilities $ — Derivatives not designated as hedging instruments: Interest rate products Other assets 25,523 Other liabilities 25,518 Total Other assets $ 26,907 Other liabilities $ 25,518 Asset Derivatives Liability Derivatives as of December 31, 2017 as of December 31, 2017 (Dollars in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate products Other assets $ 1,650 Other liabilities $ 9 Derivatives not designated as hedging instruments: Interest rate products Other assets 12,111 Other liabilities 12,069 Total Other assets $ 13,761 Other liabilities $ 12,078 |
Schedule of offsetting derivative assets | The following tables show the impact legally enforceable master netting agreements had on the Company’s derivative financial instruments as of December 31, 2018 and 2017 : Offsetting of Derivative Assets Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets Gross Amounts Not Offset in the Statement of Financial Position Net Amount (Dollars in thousands) Financial Instruments Cash Collateral Received December 31, 2018 $ 26,907 $ — $ 26,907 $ (9,587 ) $ — $ 17,320 December 31, 2017 $ 13,761 $ — $ 13,761 $ (5,677 ) $ — $ 8,084 |
Schedule of offsetting derivative liabilities | Offsetting of Derivative Liabilities Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Liabilities Gross Amounts Not Offset in the Statement of Financial Position Net Amount (Dollars in thousands) Financial Instruments Cash Collateral Posted December 31, 2018 $ 25,518 $ — $ 25,518 $ (9,587 ) $ (3,941 ) $ 11,990 December 31, 2017 $ 12,078 $ — $ 12,078 $ (5,677 ) $ (124 ) $ 6,277 |
Schedule of derivative instruments, gain (loss) in statement of financial performance | The table below presents the effective portion of the Company’s cash flow hedge instruments in the consolidated statements of income for the years ended December 31, 2018 , 2017 and 2016 : Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Derivatives designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivatives Realized Gain (Loss) Interest rate products Interest expense $ 1,380 $ 371 $ (43 ) The table below presents the effective portion of the Company’s cash flow hedge instruments in accumulated other comprehensive income for the years ended December 31, 2018 , 2017 and 2016 : Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Derivatives designated as hedging instruments: Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives Interest rate products $ 1,027 $ 287 $ 1,750 The table below presents the effect of the Company’s fair value hedge instruments in the consolidated statements of income for the years ended December 31, 2018 , 2017 and 2016 : Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Derivatives designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivatives Realized Gain (Loss) Interest rate products Interest income $ (9 ) $ (60 ) $ (88 ) Interest rate products Non-interest income — 4 4 Total $ (9 ) $ (56 ) $ (84 ) The table below presents the effect of the Company’s non-designated hedge instruments in the consolidated statements of income for the years ended December 31, 2018 , 2017 and 2016 : Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Derivatives not designated as hedging instruments: Location of Gain (Loss) Recognized in Income on Derivatives Realized Gain (Loss) Interest rate products Non-interest income $ 14 $ (1 ) $ 528 |
Schedule of interest rate derivative transactions | Characteristics of the Company’s interest rate derivative transactions designated as cash flow hedges of interest rate risk as of December 31, 2018 , were as follows: (Dollars in thousands) Notional Estimated Increase/(Decrease) to Interest Expense in the Next Twelve Months Maturity Date Remaining Term Interest rate products: Issued 6/29/2016 $ 100,000 $ (958 ) 6/29/2019 6 Issued 1/8/2018 50,000 (245 ) 1/8/2021 24 Total $ 150,000 $ (1,203 ) |
Disclosures About Fair Value _2
Disclosures About Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value, assets and liabilities measured on recurring basis | The following tables represent assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017 : December 31, 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets / Financial assets: Debt securities available-for-sale: Corporate bonds $ — $ 151,063 $ — $ 151,063 Trust preferred securities — 16,849 — 16,849 Non-agency collateralized loan obligations — 390 — 390 Agency collateralized mortgage obligations — 33,718 — 33,718 Agency mortgage-backed securities — 21,264 — 21,264 Agency debentures — 10,012 — 10,012 Equity securities 12,661 — — 12,661 Interest rate swaps — 26,907 — 26,907 Total financial assets $ 12,661 $ 260,203 $ — $ 272,864 Financial liabilities: Interest rate swaps $ — $ 25,518 $ — $ 25,518 Acquisition earn out liability — — 2,920 2,920 Total financial liabilities $ — $ 25,518 $ 2,920 $ 28,438 December 31, 2017 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets / Financial assets: Debt securities available-for-sale: Corporate bonds $ — $ 61,689 $ — $ 61,689 Trust preferred securities — 18,581 — 18,581 Non-agency collateralized loan obligations — 805 — 805 Agency collateralized mortgage obligations — 38,822 — 38,822 Agency mortgage-backed securities — 18,953 — 18,953 Equity securities 8,635 — — 8,635 Interest rate swaps — 13,761 — 13,761 Total financial assets $ 8,635 $ 152,611 $ — $ 161,246 Financial liabilities: Interest rate swaps $ — $ 12,078 $ — $ 12,078 Total financial liabilities $ — $ 12,078 $ — $ 12,078 |
Schedule of fair value measurements, nonrecurring | The following tables represent the balances of assets measured at fair value on a non-recurring basis as of December 31, 2018 and 2017 : December 31, 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Loans measured for impairment, net $ — $ — $ 1,800 $ 1,800 Other real estate owned — — 3,424 3,424 Total assets $ — $ — $ 5,224 $ 5,224 December 31, 2017 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets Loans measured for impairment, net $ — $ — $ 4,047 $ 4,047 Other real estate owned — — 3,576 3,576 Total assets $ — $ — $ 7,623 $ 7,623 |
Schedule of fair value inputs, assets, quantitative information | The following tables present additional quantitative information about assets measured at fair value on a recurring and non-recurring basis and for which we have utilized Level 3 inputs to determine fair value as of December 31, 2018 and 2017 : December 31, 2018 (Dollars in thousands) Fair Value Valuation Techniques (1) Significant Unobservable Inputs Weighted Average Multiple/Discount Rate Acquisition earn out liability $ 2,920 Income approach Run-rate revenue multiple; client retention 1.6 times Loans measured for impairment, net $ 1,800 Appraisal value Discount due to salability conditions 16% Other real estate owned $ 3,424 Appraisal value Discount due to salability conditions 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, 2017 (Dollars in thousands) Fair Value Valuation Techniques (1) Significant Unobservable Inputs Weighted Average Discount Rate Loans measured for impairment, net $ 676 Appraisal value Discount due to salability conditions —% Loans measured for impairment, net $ 3,371 Discounted cash flow Discount due to restructured nature of operations 6% Other real estate owned $ 3,576 Appraisal value Discount due to salability conditions 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. |
Schedule of fair and carrying value of financial assets and liabilities | The following is a summary of the carrying amounts and estimated fair values of financial instruments as of December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 (Dollars in thousands) Fair Value Carrying Estimated Carrying Estimated Financial assets: Cash and cash equivalents 1 $ 189,985 $ 189,985 $ 156,153 $ 156,153 Debt securities available-for-sale 2 233,296 233,296 138,850 138,850 Debt securities held-to-maturity 2 196,131 196,823 59,275 60,141 Equity securities 1 12,661 12,661 8,635 8,635 Federal Home Loan Bank stock 2 24,671 24,671 13,792 13,792 Loans held-for-investment, net 3 5,119,665 5,119,562 4,169,827 4,167,775 Accrued interest receivable 2 20,702 20,702 13,519 13,519 Investment management fees receivable, net 2 7,299 7,299 7,720 7,720 Bank owned life insurance 2 68,309 68,309 66,593 66,593 Other real estate owned 3 3,424 3,424 3,576 3,576 Interest rate swaps 2 26,907 26,907 13,761 13,761 Financial liabilities: Deposits 2 $ 5,050,461 $ 5,048,079 $ 3,987,611 $ 3,985,883 Borrowings, net 2 404,166 404,084 335,913 336,051 Acquisition earn out liability 3 2,920 2,920 — — Interest rate swaps 2 25,518 25,518 12,078 12,078 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of changes in accumulated other comprehensive income | The following table shows the changes in accumulated other comprehensive income (loss) net of tax, for the years ended December 31, 2018 , 2017 and 2016 : Years Ended December 31, 2018 2017 2016 (Dollars in thousands) Investment Securities Derivatives Total Investment Securities Derivatives Total Investment Securities Derivatives Total Balance, beginning of period $ 172 $ 1,074 $ 1,246 $ (297 ) $ 1,127 $ 830 $ (1,443 ) $ — $ (1,443 ) Change in unrealized holding gains (losses) (2,913 ) 773 (2,140 ) 655 180 835 1,166 1,100 2,266 Losses (gains) reclassified from other comprehensive income 53 (1,050 ) (997 ) (186 ) (233 ) (419 ) (20 ) 27 7 Reclassification for equity securities under ASU 2016-01 (see Note 1) 286 — 286 — — — — — — Reclassification for certain income tax effects under ASU 2018-02 (see Note 1) 39 235 274 — — — — — — Net other comprehensive income (loss) (2,535 ) (42 ) (2,577 ) 469 (53 ) 416 1,146 1,127 2,273 Balance, end of period $ (2,363 ) $ 1,032 $ (1,331 ) $ 172 $ 1,074 $ 1,246 $ (297 ) $ 1,127 $ 830 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | During the years ended December 31, 2018 , 2017 and 2016 , the Bank obtained services from affiliated companies of certain directors in the normal course of business as outlined below: (Dollars in thousands) Years Ended December 31, Related Party Affiliation Nature of Transaction 2018 2017 2016 Voyager Jet Center Owned by a director Aircraft charter $ 145 $ 109 $ 104 Total $ 145 $ 109 $ 104 |
Condensed Parent Company Only_2
Condensed Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed balance sheet | CONDENSED STATEMENTS OF FINANCIAL CONDITION PARENT COMPANY ONLY December 31, (Dollars in thousands) 2018 2017 ASSETS Cash and cash equivalents $ 3,561 $ 3,986 Equity securities 12,661 8,635 Investment in subsidiaries 504,711 418,189 Prepaid expenses and other assets 1,648 541 Total assets $ 522,581 $ 431,351 LIABILITIES AND SHAREHOLDERS’ EQUITY Borrowings, net $ 39,166 $ 40,913 Other accrued expenses and other liabilities 4,061 1,367 Shareholders’ equity 479,354 389,071 Total liabilities and shareholders’ equity $ 522,581 $ 431,351 |
Schedule of condensed income statement | CONDENSED STATEMENTS OF INCOME PARENT COMPANY ONLY Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Interest income $ 284 $ 279 $ 301 Dividends received from subsidiaries 3,000 3,000 23,100 Total interest and dividend income 3,284 3,279 23,401 Interest expense 2,334 2,305 2,215 Net interest income 950 974 21,186 Non-interest income (loss) (774 ) — — Non-interest expense 749 371 370 Income (loss) before income taxes and undisbursed income of subsidiaries (573 ) 603 20,816 Income tax expense (benefit) (490 ) (251 ) (877 ) Income (loss) before undisbursed income of subsidiaries (83 ) 854 21,693 Undisbursed income of subsidiaries 54,507 37,134 6,948 Net income $ 54,424 $ 37,988 $ 28,641 |
Schedule of condensed cash flow statement | CONDENSED STATEMENTS OF CASH FLOWS PARENT COMPANY ONLY Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Cash Flows from Operating Activities: Net income $ 54,424 $ 37,988 $ 28,641 Adjustments to reconcile net income to net cash provided by operating activities: Undisbursed income of subsidiaries (54,507 ) (37,134 ) (6,948 ) Unrealized loss on equity securities 775 — — Amortization of deferred financing costs 203 203 202 Increase (decrease) in accrued interest payable (19 ) 19 — Decrease (increase) in other assets (784 ) 238 (913 ) Increase (decrease) in other liabilities 2,729 (777 ) 776 Net cash provided by operating activities 2,821 537 21,758 Cash Flows from Investing Activities: Purchase of equity securities (5,224 ) (267 ) (285 ) Net payments for investments in subsidiaries (26,335 ) (200 ) (13,030 ) Net cash used in investing activities (31,559 ) (467 ) (13,315 ) Cash Flows from Financing Activities: Net proceeds from issuance of preferred stock 38,468 — — Net increase (decrease) in line of credit advances (1,950 ) 6,200 — Net proceeds from exercise of stock options 1,667 1,663 2,674 Cancellation of stock options (945 ) — (6,200 ) Purchase of treasury stock (6,807 ) (8,675 ) (5,125 ) Dividends paid on preferred stock (2,120 ) — — Net cash provided by (used in) financing activities 28,313 (812 ) (8,651 ) Net change in cash and cash equivalents (425 ) (742 ) (208 ) Cash and cash equivalents at beginning of year 3,986 4,728 4,936 Cash and cash equivalents at end of year $ 3,561 $ 3,986 $ 4,728 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 years ended December 31, 2018 and 2017 . The information provided under the caption “Parent and Other” represents general operating activity of the Company not considered to be a reportable segment, which includes parent company activity as well as eliminations and adjustments that are necessary for purposes of reconciliation to the consolidated amounts. (Dollars in thousands) December 31, 2018 December 31, 2017 Assets: Bank $ 5,947,165 $ 4,691,760 Investment management 92,894 84,714 Parent and other (4,404 ) 1,423 Total assets $ 6,035,655 $ 4,777,897 Year Ended December 31, 2018 (Dollars in thousands) Bank Investment Parent Consolidated Income statement data: Interest income $ 199,510 $ — $ 276 $ 199,786 Interest expense 84,055 — 2,327 86,382 Net interest income (loss) 115,455 — (2,051 ) 113,404 Provision (credit) for loan losses (205 ) — — (205 ) Net interest income (loss) after provision for loan losses 115,660 — (2,051 ) 113,609 Non-interest income: Investment management fees — 37,939 (292 ) 37,647 Net loss on the sale and call of debt securities (70 ) — — (70 ) Other non-interest income (loss) 11,112 1 (773 ) 10,340 Total non-interest income 11,042 37,940 (1,065 ) 47,917 Non-interest expense: Intangible amortization expense — 1,968 — 1,968 Change in fair value of acquisition earn out — (218 ) — (218 ) Other non-interest expense 67,190 31,760 457 99,407 Total non-interest expense 67,190 33,510 457 101,157 Income (loss) before tax 59,512 4,430 (3,573 ) 60,369 Income tax expense (benefit) 5,856 579 (490 ) 5,945 Net income (loss) $ 53,656 $ 3,851 $ (3,083 ) $ 54,424 Year Ended December 31, 2017 (Dollars in thousands) Bank Investment Parent Consolidated Income statement data: Interest income $ 134,029 $ — $ 266 $ 134,295 Interest expense 40,649 — 2,293 42,942 Net interest income (loss) 93,380 — (2,027 ) 91,353 Provision (credit) for loan losses (623 ) — — (623 ) Net interest income (loss) after provision for loan losses 94,003 — (2,027 ) 91,976 Non-interest income: Investment management fees — 37,309 (209 ) 37,100 Net gain on the sale and call of debt securities 310 — — 310 Other non-interest income 9,554 2 — 9,556 Total non-interest income 9,864 37,311 (209 ) 46,966 Non-interest expense: Intangible amortization expense — 1,851 — 1,851 Other non-interest expense 59,073 30,387 161 89,621 Total non-interest expense 59,073 32,238 161 91,472 Income (loss) before tax 44,794 5,073 (2,397 ) 47,470 Income tax expense (benefit) 9,211 522 (251 ) 9,482 Net income (loss) $ 35,583 $ 4,551 $ (2,146 ) $ 37,988 Year Ended December 31, 2016 (Dollars in thousands) Bank Investment Parent Consolidated Income statement data: Interest income $ 98,027 $ — $ 285 $ 98,312 Interest expense 21,300 — 2,199 23,499 Net interest income (loss) 76,727 — (1,914 ) 74,813 Provision for loan losses 838 — — 838 Net interest income (loss) after provision for loan losses 75,889 — (1,914 ) 73,975 Non-interest income: Investment management fees — 37,258 (223 ) 37,035 Net gain on the sale and call of debt securities 77 — — 77 Other non-interest income 9,393 3 — 9,396 Total non-interest income 9,470 37,261 (223 ) 46,508 Non-interest expense: Intangible amortization expense — 1,753 — 1,753 Change in fair value of acquisition earn out — (3,687 ) — (3,687 ) Other non-interest expense 52,676 27,905 147 80,728 Total non-interest expense 52,676 25,971 147 78,794 Income (loss) before tax 32,683 11,290 (2,284 ) 41,689 Income tax expense (benefit) 9,568 4,357 (877 ) 13,048 Net income (loss) $ 23,115 $ 6,933 $ (1,407 ) $ 28,641 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | The tables below summarize our unaudited quarterly financial information for the years ended December 31, 2018 and 2017 : 2018 (Dollars in thousands, except per share data) Fourth Third Second First Income statement data: (unaudited) Interest income $ 58,162 $ 52,424 $ 47,784 $ 41,416 Interest expense 28,630 23,605 18,993 15,154 Net interest income 29,532 28,819 28,791 26,262 Provision (credit) for loan losses (581 ) (234 ) 415 195 Net interest income after provision for loan losses 30,113 29,053 28,376 26,067 Non-interest income: Investment management fees 9,225 9,828 9,686 8,908 Net gain (loss) on the sale and call of debt securities (76 ) — 1 5 Other non-interest income 2,426 2,923 2,815 2,176 Total non-interest income 11,575 12,751 12,502 11,089 Non-interest expense: Intangible amortization expense 503 502 502 461 Change in fair value of acquisition earn out (218 ) — — — Other non-interest expense 26,018 25,184 24,816 23,389 Total non-interest expense 26,303 25,686 25,318 23,850 Income before tax 15,385 16,118 15,560 13,306 Income tax expense 265 1,807 968 2,905 Net income $ 15,120 $ 14,311 $ 14,592 $ 10,401 Preferred stock dividends on Series A 679 679 762 — Net income available to common shareholders $ 14,441 $ 13,632 $ 13,830 $ 10,401 Earnings per common share: Basic $ 0.52 $ 0.49 $ 0.50 $ 0.38 Diluted $ 0.50 $ 0.47 $ 0.48 $ 0.36 2017 (Dollars in thousands, except per share data) Fourth Third Second First Income statement data: (unaudited) Interest income $ 37,868 $ 35,575 $ 32,115 $ 28,737 Interest expense 13,069 11,970 10,082 7,821 Net interest income 24,799 23,605 22,033 20,916 Provision (credit) for loan losses (1,665 ) 283 516 243 Net interest income after provision for loan losses 26,464 23,322 21,517 20,673 Non-interest income: Investment management fees 9,416 9,214 9,130 9,340 Net gain (loss) on the sale and call of debt securities 56 15 241 (2 ) Other non-interest income 2,667 2,477 2,341 2,071 Total non-interest income 12,139 11,706 11,712 11,409 Non-interest expense: Intangible amortization expense 463 463 462 463 Other non-interest expense 25,255 22,349 21,322 20,695 Total non-interest expense 25,718 22,812 21,784 21,158 Income before tax 12,885 12,216 11,445 10,924 Income tax expense 842 2,184 3,024 3,432 Net income $ 12,043 $ 10,032 $ 8,421 $ 7,492 Preferred stock dividends on Series A — — — — Net income available to common shareholders $ 12,043 $ 10,032 $ 8,421 $ 7,492 Earnings per common share: Basic $ 0.44 $ 0.36 $ 0.31 $ 0.27 Diluted $ 0.42 $ 0.35 $ 0.29 $ 0.26 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)officessubsidiary | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of wholly-owned subsidiaries | subsidiary | 3 | ||
Number of representative offices, additional to main office | offices | 4 | ||
Consecutive period loan is current (in months) | 6 months | ||
Bad debt expense | $ 0 | $ 322,000 | $ 0 |
Allowance for uncollectible accounts | $ 0 | $ 0 | |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Past due period for loans (in days) | 90 days | ||
Weighted Average Estimated Useful Life (months) | 4 years | ||
Estimated useful lives of office properties and equipment (in years) | 3 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Original maturity of short-term investments (in days) | 90 days | ||
Weighted Average Estimated Useful Life (months) | 25 years | ||
Estimated useful lives of office properties and equipment (in years) | 10 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Recent Accounting Developments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impact of adoption of ASU | $ 533,000 | ||
ASU 2018-02 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification for certain income tax effects under ASU 2018-02 | 274,000 | ||
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impact of adoption of ASU | 0 | ||
ASU 2016-01 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impact of adoption of ASU | $ (286,000) | $ (286,000) | |
ASU 2014-09 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impact of adoption of ASU | $ 533,000 | $ 533,000 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ in Thousands | Apr. 06, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||||
Acquisition earn out liability | $ 2,920 | $ 2,920 | $ 0 | $ 0 | ||||
Change in fair value of acquisition earn out | (218) | $ 0 | $ 0 | $ 0 | (218) | $ 0 | $ (3,687) | |
Columbia acquisition | ||||||||
Business Acquisition [Line Items] | ||||||||
Assets under management, carrying amount | $ 1,070,000 | |||||||
Cash | 1,335 | |||||||
Maximum earn out liability | 3,800 | |||||||
Acquisition earn out liability | $ 3,138 | $ 2,900 | 2,900 | |||||
Change in fair value of acquisition earn out | (218) | |||||||
Revenue of acquiree since acquisition date, actual | 1,600 | |||||||
Earnings or loss of acquiree since acquisition date, actual | $ 107 |
Business Combination - Assets A
Business Combination - Assets Acquired (Details) - USD ($) $ in Thousands | Apr. 06, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Acquisition earn out liability | $ 2,920 | $ 0 | $ 0 | |
Intangible assets acquired | 34,632 | 33,095 | ||
Goodwill | 41,660 | $ 38,724 | $ 38,724 | |
Columbia acquisition | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 1,335 | |||
Acquisition earn out liability | 3,138 | $ 2,900 | ||
Fair value of total consideration, at closing | 4,473 | |||
Intangible assets acquired | 1,537 | |||
Goodwill | 2,936 | |||
Total net assets purchased | $ 4,473 |
Business Combination - Other In
Business Combination - Other Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Apr. 06, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Gross Amount | $ 25,332 | $ 23,795 | |
Columbia acquisition | |||
Business Acquisition [Line Items] | |||
Gross Amount | $ 1,537 | ||
Weighted Average Estimated Useful Life (months) | 108 months | ||
Sub-advisory client list | |||
Business Acquisition [Line Items] | |||
Gross Amount | 11,645 | 11,530 | |
Sub-advisory client list | Columbia acquisition | |||
Business Acquisition [Line Items] | |||
Gross Amount | $ 115 | ||
Weighted Average Estimated Useful Life (months) | 132 months | ||
Separate managed accounts client list | |||
Business Acquisition [Line Items] | |||
Gross Amount | 3,175 | 1,810 | |
Separate managed accounts client list | Columbia acquisition | |||
Business Acquisition [Line Items] | |||
Gross Amount | $ 1,365 | ||
Weighted Average Estimated Useful Life (months) | 108 months | ||
Non-compete agreements | |||
Business Acquisition [Line Items] | |||
Gross Amount | $ 522 | $ 465 | |
Non-compete agreements | Columbia acquisition | |||
Business Acquisition [Line Items] | |||
Gross Amount | $ 57 | ||
Weighted Average Estimated Useful Life (months) | 48 months |
Business Combination - Pro Form
Business Combination - Pro Forma (Details) - Columbia acquisition - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Total revenue | $ 161,997 | $ 140,806 |
Net income available to common shareholders | $ 52,401 | $ 38,601 |
Earnings per common share: | ||
Basic (in usd per share) | $ 1.90 | $ 1.40 |
Diluted (in usd per share) | $ 1.82 | $ 1.34 |
Investment Securities - Investm
Investment Securities - Investment Types (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt securities available-for-sale: | ||
Amortized Cost | $ 236,297 | $ 138,147 |
Gross Unrealized Appreciation | 179 | 1,078 |
Gross Unrealized Depreciation | 3,180 | 375 |
Debt securities available-for-sale, at fair value | 233,296 | 138,850 |
Debt securities held-to-maturity: | ||
Amortized Cost | 196,131 | 59,275 |
Gross Unrealized Appreciation | 836 | 910 |
Gross Unrealized Depreciation | 144 | 44 |
Estimated Fair Value | 196,823 | 60,141 |
Amortized Cost | 432,428 | 197,422 |
Gross Unrealized Appreciation | 1,015 | 1,988 |
Gross Unrealized Depreciation | 3,324 | 419 |
Estimated Fair Value | 430,119 | 198,991 |
Corporate bonds | ||
Debt securities available-for-sale: | ||
Amortized Cost | 152,691 | 61,616 |
Gross Unrealized Appreciation | 33 | 216 |
Gross Unrealized Depreciation | 1,661 | 143 |
Debt securities available-for-sale, at fair value | 151,063 | 61,689 |
Debt securities held-to-maturity: | ||
Amortized Cost | 27,184 | 32,189 |
Gross Unrealized Appreciation | 353 | 785 |
Gross Unrealized Depreciation | 22 | 33 |
Estimated Fair Value | 27,515 | 32,941 |
Trust preferred securities | ||
Debt securities available-for-sale: | ||
Amortized Cost | 17,964 | 17,840 |
Gross Unrealized Appreciation | 0 | 741 |
Gross Unrealized Depreciation | 1,115 | 0 |
Debt securities available-for-sale, at fair value | 16,849 | 18,581 |
Non-agency collateralized loan obligations | ||
Debt securities available-for-sale: | ||
Amortized Cost | 393 | 811 |
Gross Unrealized Appreciation | 0 | 0 |
Gross Unrealized Depreciation | 3 | 6 |
Debt securities available-for-sale, at fair value | 390 | 805 |
Agency collateralized mortgage obligations | ||
Debt securities available-for-sale: | ||
Amortized Cost | 33,680 | 38,873 |
Gross Unrealized Appreciation | 42 | 25 |
Gross Unrealized Depreciation | 4 | 76 |
Debt securities available-for-sale, at fair value | 33,718 | 38,822 |
Agency mortgage-backed securities | ||
Debt securities available-for-sale: | ||
Amortized Cost | 21,575 | 19,007 |
Gross Unrealized Appreciation | 37 | 96 |
Gross Unrealized Depreciation | 348 | 150 |
Debt securities available-for-sale, at fair value | 21,264 | 18,953 |
Debt securities held-to-maturity: | ||
Amortized Cost | 4,409 | |
Gross Unrealized Appreciation | 0 | |
Gross Unrealized Depreciation | 27 | |
Estimated Fair Value | 4,382 | |
Agency debentures | ||
Debt securities available-for-sale: | ||
Amortized Cost | 9,994 | |
Gross Unrealized Appreciation | 67 | |
Gross Unrealized Depreciation | 49 | |
Debt securities available-for-sale, at fair value | 10,012 | |
Debt securities held-to-maturity: | ||
Amortized Cost | 141,575 | 1,984 |
Gross Unrealized Appreciation | 472 | 3 |
Gross Unrealized Depreciation | 34 | 0 |
Estimated Fair Value | 142,013 | 1,987 |
Municipal bonds | ||
Debt securities held-to-maturity: | ||
Amortized Cost | 22,963 | 25,102 |
Gross Unrealized Appreciation | 11 | 122 |
Gross Unrealized Depreciation | 61 | 11 |
Estimated Fair Value | $ 22,913 | $ 25,213 |
Investment Securities - Interes
Investment Securities - Interest Income on Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Taxable interest income | $ 9,062 | $ 4,896 | $ 4,213 |
Non-taxable interest income | 420 | 452 | 452 |
Dividend income | 1,201 | 869 | 778 |
Total interest income on investments | $ 10,683 | $ 6,217 | $ 5,443 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ||
Due in one year or less | $ 17,187 | |
Due from one to five years | 114,241 | |
Due from five to ten years | 31,215 | |
Due after ten years | 73,654 | |
Amortized Cost | 236,297 | $ 138,147 |
Available-for-sale Securities, Debt Maturities, Estimated Fair Value | ||
Due in one year or less | 17,120 | |
Due from one to five years | 113,788 | |
Due from five to ten years | 29,671 | |
Due after ten years | 72,717 | |
Estimated Fair Value | 233,296 | 138,850 |
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Net [Abstract] | ||
Due in one year or less | 2,130 | |
Due from one to five years | 52,385 | |
Due from five to ten years | 105,720 | |
Due after ten years | 35,896 | |
Amortized Cost | 196,131 | 59,275 |
Debt Securities, Held-to-maturity, Maturity, Fair Value [Abstract] | ||
Due in one year or less | 2,129 | |
Due from one to five years | 52,419 | |
Due from five to ten years | 106,186 | |
Due after ten years | 36,089 | |
Estimated Fair Value | $ 196,823 | $ 60,141 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities with a contractual maturity due after ten years | $ 72,717,000 | |
Floating rate available-for-sale securities with a contractual maturity due after ten years | $ 44,800,000 | |
Percent of floating rate available-for-sale securities with a contractual maturity due after ten years | 61.70% | |
Held-to-maturity securities, debt maturities due from five to ten years | $ 105,720,000 | |
Held-to-maturity securities, debt maturities due from five to ten years, callable | 20,800,000 | |
Debt securities trading | 0 | $ 0 |
Equity securities | 12,661,000 | $ 8,635,000 |
Federal Home Loan Bank | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities available to be pledged as collateral for borrowings | $ 3,300,000 |
Investment Securities - Gains a
Investment Securities - Gains and Losses on Sales and Calls of Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sale of available-for-sale securities | $ 31,306 | $ 2,527 | $ 4,691 |
Proceeds from call of available-for-sale securities | 6,129 | 21,675 | 2,000 |
Total proceeds from sale and call of available-for-sale securities | 37,435 | 24,202 | 6,691 |
Gross realized gains on available-for-sale securities | 51 | 297 | 34 |
Gross realized losses on available-for-sale securities | 124 | 2 | 3 |
Net realized gains (losses) on sale and call of available-for-sale securities | (73) | 295 | 31 |
Proceeds from sale of held-to-maturity securities | 0 | 0 | 0 |
Proceeds from call of held-to-maturity securities | 1,000 | 3,000 | 2,500 |
Total proceeds from sale and call of held-to-maturity securities | 1,000 | 3,000 | 2,500 |
Gross realized gains on held-to-maturity securities | 3 | 15 | 46 |
Gross realized losses on held-to-maturity securities | 0 | 0 | 0 |
Net realized gains (losses) on sale and call of held-to-maturity securities | $ 3 | $ 15 | $ 46 |
Investment Securities - Unreali
Investment Securities - Unrealized Losses (Details) $ in Thousands | Dec. 31, 2018USD ($)position | Dec. 31, 2017USD ($)position |
Fair value, Debt securities available-for-sale | ||
Less than 12 Months | $ 136,387 | $ 34,548 |
12 Months or More | 35,049 | 43,058 |
Total | 171,436 | 77,606 |
Unrealized losses, Debt securities available-for-sale | ||
Less than 12 Months | 2,004 | 154 |
12 Months or More | 1,176 | 221 |
Total | 3,180 | 375 |
Fair value, Debt securities held-to-maturity | ||
Less than 12 Months | 26,417 | 8,457 |
12 Months or More | 2,110 | 0 |
Total | 28,527 | 8,457 |
Unrealized losses, Debt securities held-to-maturity | ||
Less than 12 Months | 134 | 44 |
12 Months or More | 10 | 0 |
Total | 144 | 44 |
Less than 12 months, fair value, total impaired securities | 162,804 | 43,005 |
Less than 12 months, unrealized losses, total impaired securities | 2,138 | 198 |
12 months or more, fair value, total impaired securities | 37,159 | 43,058 |
12 months or more, unrealized losses, total impaired securities | 1,186 | 221 |
Total, fair value, total impaired securities | 199,963 | 86,063 |
Total, unrealized losses, total impaired securities | $ 3,324 | $ 419 |
Available-for-sale, number of positions in an unrealized loss position | position | 78 | 28 |
Held-to-maturity, number of positions in an unrealized loss position | position | 29 | 8 |
Corporate bonds | ||
Fair value, Debt securities available-for-sale | ||
Less than 12 Months | $ 110,200 | $ 29,995 |
12 Months or More | 22,954 | 0 |
Total | 133,154 | 29,995 |
Unrealized losses, Debt securities available-for-sale | ||
Less than 12 Months | 789 | 143 |
12 Months or More | 872 | 0 |
Total | 1,661 | 143 |
Fair value, Debt securities held-to-maturity | ||
Less than 12 Months | 3,978 | 2,406 |
12 Months or More | 0 | 0 |
Total | 3,978 | 2,406 |
Unrealized losses, Debt securities held-to-maturity | ||
Less than 12 Months | 22 | 33 |
12 Months or More | 0 | 0 |
Total | 22 | 33 |
Trust preferred securities | ||
Fair value, Debt securities available-for-sale | ||
Less than 12 Months | 16,849 | |
12 Months or More | 0 | |
Total | 16,849 | |
Unrealized losses, Debt securities available-for-sale | ||
Less than 12 Months | 1,115 | |
12 Months or More | 0 | |
Total | 1,115 | |
Non-agency collateralized loan obligations | ||
Fair value, Debt securities available-for-sale | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 390 | 805 |
Total | 390 | 805 |
Unrealized losses, Debt securities available-for-sale | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 3 | 6 |
Total | 3 | 6 |
Agency collateralized mortgage obligations | ||
Fair value, Debt securities available-for-sale | ||
Less than 12 Months | 0 | 1,593 |
12 Months or More | 3,015 | 32,816 |
Total | 3,015 | 34,409 |
Unrealized losses, Debt securities available-for-sale | ||
Less than 12 Months | 0 | 1 |
12 Months or More | 4 | 75 |
Total | 4 | 76 |
Agency mortgage-backed securities | ||
Fair value, Debt securities available-for-sale | ||
Less than 12 Months | 5,851 | 2,960 |
12 Months or More | 8,690 | 9,437 |
Total | 14,541 | 12,397 |
Unrealized losses, Debt securities available-for-sale | ||
Less than 12 Months | 51 | 10 |
12 Months or More | 297 | 140 |
Total | 348 | 150 |
Fair value, Debt securities held-to-maturity | ||
Less than 12 Months | 4,382 | |
12 Months or More | 0 | |
Total | 4,382 | |
Unrealized losses, Debt securities held-to-maturity | ||
Less than 12 Months | 27 | |
12 Months or More | 0 | |
Total | 27 | |
Agency debentures | ||
Fair value, Debt securities available-for-sale | ||
Less than 12 Months | 3,487 | |
12 Months or More | 0 | |
Total | 3,487 | |
Unrealized losses, Debt securities available-for-sale | ||
Less than 12 Months | 49 | |
12 Months or More | 0 | |
Total | 49 | |
Fair value, Debt securities held-to-maturity | ||
Less than 12 Months | 1,952 | |
12 Months or More | 0 | |
Total | 1,952 | |
Unrealized losses, Debt securities held-to-maturity | ||
Less than 12 Months | 34 | |
12 Months or More | 0 | |
Total | 34 | |
Municipal bonds | ||
Fair value, Debt securities held-to-maturity | ||
Less than 12 Months | 16,105 | 6,051 |
12 Months or More | 2,110 | 0 |
Total | 18,215 | 6,051 |
Unrealized losses, Debt securities held-to-maturity | ||
Less than 12 Months | 51 | 11 |
12 Months or More | 10 | 0 |
Total | $ 61 | $ 11 |
Federal Home Loan Bank Stock -
Federal Home Loan Bank Stock - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal Home Loan Bank Stock [Abstract] | |||
Federal Home Loan Bank membership minimum investment in capital stock on outstanding advances, percent | 4.00% | ||
Federal Home Loan Bank membership minimum investment in capital stock on issued letters of credits, percent | 0.75% | ||
Federal Home Loan Bank membership capital stock requirement on asset value, percent | 0.10% | ||
Federal Home Loan Bank minimum investment, required | $ 15,500 | ||
Federal Home Loan Bank, advances | 365,000 | ||
Amount of letters of credit issued to customers | 5,600 | ||
Federal Home Loan Bank membership basis for asset value, excluding advances | 829,100 | ||
Federal Home Loan Bank stock | 24,671 | $ 13,792 | |
Dividends received from holdings in FHLB capital stock | $ 924 | $ 603 | $ 494 |
Loans - Loans Receivable by Cla
Loans - Loans Receivable by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment, net of deferred fees and costs | $ 5,132,873 | $ 4,184,244 | ||
Allowance for loan losses | (13,208) | (14,417) | $ (18,762) | $ (17,974) |
Loans held-for-investment, net | 5,119,665 | 4,169,827 | ||
Loans receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment, before deferred fees and costs | 5,128,078 | 4,182,837 | ||
Net deferred loan costs (fees) | 4,795 | 1,407 | ||
Loans held-for-investment, net of deferred fees and costs | 5,132,873 | 4,184,244 | ||
Allowance for loan losses | (13,208) | (14,417) | ||
Loans held-for-investment, net | 5,119,665 | 4,169,827 | ||
Private Banking | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment, net of deferred fees and costs | 2,869,543 | 2,265,737 | ||
Allowance for loan losses | (1,942) | (1,577) | (1,424) | (1,566) |
Private Banking | Loans receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment, before deferred fees and costs | 2,864,094 | 2,261,625 | ||
Net deferred loan costs (fees) | 5,449 | 4,112 | ||
Loans held-for-investment, net of deferred fees and costs | 2,869,543 | 2,265,737 | ||
Allowance for loan losses | (1,942) | (1,577) | ||
Loans held-for-investment, net | 2,867,601 | 2,264,160 | ||
Commercial and Industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment, net of deferred fees and costs | 785,320 | 667,684 | ||
Allowance for loan losses | (5,764) | (8,043) | (12,326) | (11,064) |
Commercial and Industrial | Loans receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment, before deferred fees and costs | 781,836 | 667,028 | ||
Net deferred loan costs (fees) | 3,484 | 656 | ||
Loans held-for-investment, net of deferred fees and costs | 785,320 | 667,684 | ||
Allowance for loan losses | (5,764) | (8,043) | ||
Loans held-for-investment, net | 779,556 | 659,641 | ||
Commercial Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment, net of deferred fees and costs | 1,478,010 | 1,250,823 | ||
Allowance for loan losses | (5,502) | (4,797) | $ (5,012) | $ (5,344) |
Commercial Real Estate | Loans receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held-for-investment, before deferred fees and costs | 1,482,148 | 1,254,184 | ||
Net deferred loan costs (fees) | (4,138) | (3,361) | ||
Loans held-for-investment, net of deferred fees and costs | 1,478,010 | 1,250,823 | ||
Allowance for loan losses | (5,502) | (4,797) | ||
Loans held-for-investment, net | $ 1,472,508 | $ 1,246,026 |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unfunded commitments | $ 3,540,000 | $ 2,370,000 |
Reserve for losses on unfunded commitments | 542 | 504 |
Loans in the process of origination | $ 64,400 | $ 53,300 |
Interest only loans, percent | 73.70% | 71.10% |
Amount of loans receivable with no stated maturity | $ 2,670,000 | $ 2,090,000 |
Amount of loans receivable with stated maturity | $ 2,460,000 | $ 2,090,000 |
Loan portfolio average remaining maturity (years) | 4 years | 4 years |
Adjustable rate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Variable rate loans, percent | 92.20% | 90.90% |
Pennsylvania, Ohio, New Jersey, New York and contiguous states | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans to customers within the Company’s primary market areas, percent | 90.10% | 90.50% |
Standby letters of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unfunded commitments | $ 60,000 | $ 74,800 |
Standby letters of credit drawn during period | $ 6,600 | $ 204 |
Allowance for Loan Losses - Nar
Allowance for Loan Losses - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)portfolio | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | |||
Number of loan portfolios | portfolio | 3 | ||
Impaired and non-accrual loans | $ 2,237,000 | $ 6,554,000 | $ 18,261,000 |
Interest income on impaired loans | 0 | 0 | 0 |
Loans 90 days or more past due and still accruing | 0 | 0 | |
Related allowance on impaired loans | 437,000 | 2,507,000 | 6,939,000 |
Unused commitments on TDRs | 0 | 708,000 | |
Loans modified as TDRs with payment defaults | 0 | 0 | 0 |
Real estate acquired through foreclosure | 3,400,000 | 3,600,000 | |
Mortgage loans in process of foreclosure | $ 0 | ||
Minimum | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Past due period for loans (in days) | 90 days | ||
Private Banking | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Impaired and non-accrual loans | $ 2,237,000 | 368,000 | 517,000 |
Related allowance on impaired loans | $ 437,000 | $ 368,000 | $ 517,000 |
Private Banking | Cash and marketable securities collateral risk | Concentration risk, percentage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Percentage of private banking loans secured by cash and marketable securities | 96.70% | 94.60% |
Allowance for Loan Losses - Cre
Allowance for Loan Losses - Credit Quality Indicator (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | $ 5,132,873 | $ 4,184,244 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 5,108,107 | 4,154,328 |
Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 17,385 | 26,733 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 7,381 | 3,183 |
Private Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,869,543 | 2,265,737 |
Private Banking | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,864,774 | 2,265,369 |
Private Banking | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,532 | 0 |
Private Banking | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,237 | 368 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 785,320 | 667,684 |
Commercial and Industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 767,540 | 639,987 |
Commercial and Industrial | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 12,636 | 24,882 |
Commercial and Industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 5,144 | 2,815 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,478,010 | 1,250,823 |
Commercial Real Estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 1,475,793 | 1,248,972 |
Commercial Real Estate | Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | 2,217 | 1,851 |
Commercial Real Estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held-for-investment | $ 0 | $ 0 |
Allowance for Loan Losses - Cha
Allowance for Loan Losses - Changes in Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | $ 14,417 | $ 18,762 | $ 14,417 | $ 18,762 | $ 17,974 | ||||||
Provision (credit) for loan losses | $ (581) | $ (234) | $ 415 | 195 | $ (1,665) | $ 283 | $ 516 | 243 | (205) | (623) | 838 |
Charge-offs | (2,068) | (4,302) | (4,258) | ||||||||
Recoveries | 1,064 | 580 | 4,208 | ||||||||
Balance, end of period | 13,208 | 14,417 | 13,208 | 14,417 | 18,762 | ||||||
Private Banking | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | 1,577 | 1,424 | 1,577 | 1,424 | 1,566 | ||||||
Provision (credit) for loan losses | 365 | 153 | (142) | ||||||||
Charge-offs | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Balance, end of period | 1,942 | 1,577 | 1,942 | 1,577 | 1,424 | ||||||
Commercial and Industrial | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | 8,043 | 12,326 | 8,043 | 12,326 | 11,064 | ||||||
Provision (credit) for loan losses | (1,275) | (556) | 4,723 | ||||||||
Charge-offs | (2,068) | (4,302) | (4,258) | ||||||||
Recoveries | 1,064 | 575 | 797 | ||||||||
Balance, end of period | 5,764 | 8,043 | 5,764 | 8,043 | 12,326 | ||||||
Commercial Real Estate | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance, beginning of period | $ 4,797 | $ 5,012 | 4,797 | 5,012 | 5,344 | ||||||
Provision (credit) for loan losses | 705 | (220) | (3,743) | ||||||||
Charge-offs | 0 | 0 | 0 | ||||||||
Recoveries | 0 | 5 | 3,411 | ||||||||
Balance, end of period | $ 5,502 | $ 4,797 | $ 5,502 | $ 4,797 | $ 5,012 |
Allowance for Loan Losses - Ana
Allowance for Loan Losses - Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | $ 3,213 | $ 3,115 |
Current | 5,129,660 | 4,181,129 |
Loans held-for-investment, net of deferred fees and costs | 5,132,873 | 4,184,244 |
30-59 Days Past Due | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 1,040 | 3,115 |
60-89 Days Past Due | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 173 | 0 |
Loans Past Due 90 Days or More | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 2,000 | 0 |
Private Banking | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 3,213 | 1,266 |
Current | 2,866,330 | 2,264,471 |
Loans held-for-investment, net of deferred fees and costs | 2,869,543 | 2,265,737 |
Private Banking | 30-59 Days Past Due | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 1,040 | 1,266 |
Private Banking | 60-89 Days Past Due | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 173 | 0 |
Private Banking | Loans Past Due 90 Days or More | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 2,000 | 0 |
Commercial and Industrial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 785,320 | 667,684 |
Loans held-for-investment, net of deferred fees and costs | 785,320 | 667,684 |
Commercial and Industrial | 30-59 Days Past Due | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial and Industrial | 60-89 Days Past Due | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial and Industrial | Loans Past Due 90 Days or More | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 1,849 |
Current | 1,478,010 | 1,248,974 |
Loans held-for-investment, net of deferred fees and costs | 1,478,010 | 1,250,823 |
Commercial Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 1,849 |
Commercial Real Estate | 60-89 Days Past Due | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate | Loans Past Due 90 Days or More | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
Allowance for Loan Losses - Imp
Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Recorded Investment | |||
With a related allowance | $ 2,237 | $ 3,183 | $ 17,790 |
Without a related allowance | 0 | 3,371 | 471 |
Total | 2,237 | 6,554 | 18,261 |
Unpaid Principal Balance | |||
With a related allowance | 2,421 | 3,676 | 26,782 |
Without a related allowance | 0 | 5,330 | 487 |
Total | 2,421 | 9,006 | 27,269 |
Related Allowance | 437 | 2,507 | 6,939 |
Average Recorded Investment | |||
With a related allowance | 2,293 | 3,505 | 19,750 |
Without a related allowance | 0 | 4,224 | 485 |
Total | 2,293 | 7,729 | 20,235 |
Interest Income Recognized | |||
With a related allowance | 0 | 0 | 0 |
Without a related allowance | 0 | 146 | 26 |
Total | 0 | 146 | 26 |
Private banking | |||
Recorded Investment | |||
With a related allowance | 2,237 | 368 | 517 |
Without a related allowance | 0 | 0 | 0 |
Total | 2,237 | 368 | 517 |
Unpaid Principal Balance | |||
With a related allowance | 2,421 | 541 | 656 |
Without a related allowance | 0 | 0 | 0 |
Total | 2,421 | 541 | 656 |
Related Allowance | 437 | 368 | 517 |
Average Recorded Investment | |||
With a related allowance | 2,293 | 438 | 592 |
Without a related allowance | 0 | 0 | 0 |
Total | 2,293 | 438 | 592 |
Interest Income Recognized | |||
With a related allowance | 0 | 0 | 0 |
Without a related allowance | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Commercial and industrial | |||
Recorded Investment | |||
With a related allowance | 0 | 2,815 | 17,273 |
Without a related allowance | 0 | 3,371 | 471 |
Total | 0 | 6,186 | 17,744 |
Unpaid Principal Balance | |||
With a related allowance | 0 | 3,135 | 26,126 |
Without a related allowance | 0 | 5,330 | 487 |
Total | 0 | 8,465 | 26,613 |
Related Allowance | 0 | 2,139 | 6,422 |
Average Recorded Investment | |||
With a related allowance | 0 | 3,067 | 19,158 |
Without a related allowance | 0 | 4,224 | 485 |
Total | 0 | 7,291 | 19,643 |
Interest Income Recognized | |||
With a related allowance | 0 | 0 | 0 |
Without a related allowance | 0 | 146 | 26 |
Total | 0 | 146 | 26 |
Commercial real estate | |||
Recorded Investment | |||
With a related allowance | 0 | 0 | 0 |
Without a related allowance | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Unpaid Principal Balance | |||
With a related allowance | 0 | 0 | 0 |
Without a related allowance | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | |||
With a related allowance | 0 | 0 | 0 |
Without a related allowance | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Interest Income Recognized | |||
With a related allowance | 0 | 0 | 0 |
Without a related allowance | 0 | 0 | 0 |
Total | $ 0 | $ 0 | $ 0 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for loan losses: | ||
Individually evaluated for impairment | $ 437 | $ 2,507 |
Collectively evaluated for impairment | 12,771 | 11,910 |
Total allowance for loan losses | 13,208 | 14,417 |
Loans held-for-investment: | ||
Individually evaluated for impairment | 2,237 | 6,554 |
Collectively evaluated for impairment | 5,130,636 | 4,177,690 |
Loans held-for-investment, net of deferred fees and costs | 5,132,873 | 4,184,244 |
Private Banking | ||
Allowance for loan losses: | ||
Individually evaluated for impairment | 437 | 368 |
Collectively evaluated for impairment | 1,505 | 1,209 |
Total allowance for loan losses | 1,942 | 1,577 |
Loans held-for-investment: | ||
Individually evaluated for impairment | 2,237 | 368 |
Collectively evaluated for impairment | 2,867,306 | 2,265,369 |
Loans held-for-investment, net of deferred fees and costs | 2,869,543 | 2,265,737 |
Commercial and Industrial | ||
Allowance for loan losses: | ||
Individually evaluated for impairment | 0 | 2,139 |
Collectively evaluated for impairment | 5,764 | 5,904 |
Total allowance for loan losses | 5,764 | 8,043 |
Loans held-for-investment: | ||
Individually evaluated for impairment | 0 | 6,186 |
Collectively evaluated for impairment | 785,320 | 661,498 |
Loans held-for-investment, net of deferred fees and costs | 785,320 | 667,684 |
Commercial Real Estate | ||
Allowance for loan losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 5,502 | 4,797 |
Total allowance for loan losses | 5,502 | 4,797 |
Loans held-for-investment: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 1,478,010 | 1,250,823 |
Loans held-for-investment, net of deferred fees and costs | $ 1,478,010 | $ 1,250,823 |
Allowance for Loan Losses - Tro
Allowance for Loan Losses - Troubled Debt Restructuring (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Modifications [Line Items] | ||
Loans modified through troubled debt restructurings | $ 237 | $ 6,554 |
Accruing interest | ||
Financing Receivable, Modifications [Line Items] | ||
Loans modified through troubled debt restructurings | 0 | 3,371 |
Non-accrual | ||
Financing Receivable, Modifications [Line Items] | ||
Loans modified through troubled debt restructurings | $ 237 | $ 3,183 |
Allowance for Loan Losses - Mod
Allowance for Loan Losses - Modifications (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)contract | Dec. 31, 2016USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||
Count | contract | 2 | 2 |
Recorded Investment at the time of Modification | $ 433 | $ 11,098 |
Current Recorded Investment | 368 | 11,081 |
Allowance for Loan Losses at the time of Modification | 433 | 2,354 |
Current Allowance for Loan Losses | $ 368 | $ 3,274 |
Private Banking | Extended term, deferred principal and reduced interest rate | ||
Financing Receivable, Modifications [Line Items] | ||
Count | contract | 2 | |
Recorded Investment at the time of Modification | $ 433 | |
Current Recorded Investment | 368 | |
Allowance for Loan Losses at the time of Modification | 433 | |
Current Allowance for Loan Losses | $ 368 | |
Commercial and Industrial | Extended term and deferred principal | ||
Financing Receivable, Modifications [Line Items] | ||
Count | contract | 2 | |
Recorded Investment at the time of Modification | $ 11,098 | |
Current Recorded Investment | 11,081 | |
Allowance for Loan Losses at the time of Modification | 2,354 | |
Current Allowance for Loan Losses | $ 3,274 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
Goodwill additions | $ 2,936 | $ 0 | $ 2,900 | ||||||||
Intangible assets additions | 1,537 | 0 | 1,500 | ||||||||
Intangible amortization expense | $ 503 | $ 502 | $ 502 | $ 461 | $ 463 | $ 463 | $ 462 | $ 463 | $ 1,968 | $ 1,851 | $ 1,753 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | |||
Balance, beginning of period | $ 38,724 | $ 38,724 | |
Additions | 2,936 | 0 | $ 2,900 |
Balance, end of period | $ 41,660 | $ 38,724 | $ 38,724 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Change in Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible Assets [Roll Forward] | |||||||||||
Balance, beginning of period | $ 26,634 | $ 28,485 | $ 26,634 | $ 28,485 | |||||||
Additions | 1,537 | 0 | $ 1,500 | ||||||||
Amortization | $ (503) | $ (502) | $ (502) | $ (461) | $ (463) | $ (463) | $ (462) | $ (463) | (1,968) | (1,851) | (1,753) |
Balance, end of period | $ 26,203 | $ 26,634 | $ 26,203 | $ 26,634 | $ 28,485 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Intangible Assets by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | $ 25,332 | $ 23,795 | |
Total finite-lived intangibles | 16,903 | 17,334 | |
Intangible assets, gross | 34,632 | 33,095 | |
Accumulated Amortization | (8,429) | (6,461) | |
Net Carrying Amount | 26,203 | 26,634 | $ 28,485 |
Mutual fund client relationships (indefinite-lived) | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangibles | 9,300 | 9,300 | |
Trade name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 4,040 | 4,040 | |
Total finite-lived intangibles | 3,448 | 3,622 | |
Accumulated Amortization | (592) | (418) | |
Sub-advisory client list | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 11,645 | 11,530 | |
Total finite-lived intangibles | 7,547 | 8,300 | |
Accumulated Amortization | (4,098) | (3,230) | |
Separate managed accounts client list | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 3,175 | 1,810 | |
Total finite-lived intangibles | 2,396 | 1,305 | |
Accumulated Amortization | (779) | (505) | |
Other institutional client list | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 5,950 | 5,950 | |
Total finite-lived intangibles | 3,336 | 3,876 | |
Accumulated Amortization | (2,614) | (2,074) | |
Non-compete agreements | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 522 | 465 | |
Total finite-lived intangibles | 176 | 231 | |
Accumulated Amortization | $ (346) | $ (234) |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Intangible Assets Expected Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,019 | $ 2,008 | |
2,020 | 1,943 | |
2,021 | 1,911 | |
2,022 | 1,900 | |
2,023 | 1,897 | |
Thereafter | 7,244 | |
Total finite-lived intangibles | $ 16,903 | $ 17,334 |
Office Properties and Equipme_3
Office Properties and Equipment - By Major Classification (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Office properties and equipment, gross | $ 17,511 | $ 15,729 |
Accumulated depreciation | (12,385) | (10,844) |
Net office properties and equipment | 5,126 | 4,885 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Office properties and equipment, gross | 11,594 | 9,812 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Office properties and equipment, gross | $ 5,917 | $ 5,917 |
Office Properties and Equipme_4
Office Properties and Equipment - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)officesrenewal | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Office Properties and Equipment [Abstract] | |||
Depreciation expense | $ 1,500 | $ 1,500 | $ 1,300 |
Number of office locations accounted for as operating leases | offices | 6 | ||
Minimum number of lease renewal options | renewal | 1 | ||
Rent expense | $ 2,200 | 2,200 | $ 2,300 |
Deferred rent liability | 661 | 877 | |
Leasehold improvements allowance | $ 747 | $ 969 |
Office Properties and Equipme_5
Office Properties and Equipment - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,019 | $ 2,629 |
2,020 | 2,579 |
2,021 | 1,438 |
2,022 | 906 |
2,023 | 587 |
Thereafter | 320 |
Total | $ 8,459 |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits by Type (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Interest Rate Range Domestic Deposit Liabilities [Abstract] | ||
Interest-bearing checking accounts, percent, minimum | 0.05% | |
Interest-bearing checking accounts, percent, maximum | 3.02% | |
Money market deposit accounts, percent, minimum | 0.10% | |
Money market deposit accounts, percent, maximum | 3.25% | |
Time deposits, percent, minimum | 1.15% | |
Time deposits, percent, maximum | 3.22% | |
Weighted Average Rate Domestic Deposit Liabilities [Abstract] | ||
Interest-bearing checking accounts, percent | 2.29% | 1.42% |
Money market deposit accounts, percent | 2.45% | 1.37% |
Time deposits, percent | 2.39% | 1.40% |
Weighted average rate on interest-bearing accounts | 2.41% | 1.38% |
Domestic Deposit Liabilities, Demand and Savings Accounts [Abstract] | ||
Noninterest-bearing checking accounts | $ 258,268 | $ 248,092 |
Interest-bearing checking accounts | 778,131 | 455,341 |
Money market deposit accounts | 2,781,870 | 2,289,789 |
Total demand and savings accounts | 3,818,269 | 2,993,222 |
Certificates of deposit | 1,232,192 | 994,389 |
Total deposits | $ 5,050,461 | $ 3,987,611 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Brokered deposits | $ 641.4 | $ 1,070 |
Certificate of Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS), brokered | 565.3 | 627.5 |
Time deposits, $100,000 or more, excluding brokered cds | 569.8 | 440.2 |
Time deposits, $250,000 or more, excluding brokered cds | $ 230 | $ 191.4 |
Deposits - Contractual Maturiti
Deposits - Contractual Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Time Deposits, Rolling Year Maturity [Abstract] | ||
12 months or less | $ 992,468 | $ 874,733 |
12 months to 24 months | 181,456 | 96,766 |
24 months to 36 months | 58,268 | 22,890 |
Total | $ 1,232,192 | $ 994,389 |
Deposits - Interest Expense on
Deposits - Interest Expense on Deposits by Deposit Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest Expense, Deposits [Abstract] | |||
Interest-bearing checking accounts | $ 11,440 | $ 3,706 | $ 813 |
Money market deposit accounts | 45,106 | 22,350 | 11,376 |
Certificates of deposit | 21,947 | 11,429 | 7,618 |
Total interest expense on deposits | $ 78,493 | $ 37,485 | $ 19,807 |
Borrowings - Schedule of Borrow
Borrowings - Schedule of Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total borrowings, net | $ 404,166 | $ 335,913 |
Subordinated debt | Subordinated notes payable 5.75 percent | ||
Debt Instrument [Line Items] | ||
Long-term debt interest rate | 5.75% | 5.75% |
Long-term debt | $ 34,916 | $ 34,713 |
Debt issuance costs | $ 84 | $ 287 |
FHLB borrowings | Federal Home Loan Bank borrowings, maturity 5/1/2019 | ||
Debt Instrument [Line Items] | ||
Short-term debt interest rate | 2.62% | |
Short-term debt | $ 250,000 | |
FHLB borrowings | Federal Home Loan Bank Borrowings, issued 12/31/2018, maturity 1/2/2019 | ||
Debt Instrument [Line Items] | ||
Short-term debt interest rate | 2.65% | |
Short-term debt | $ 65,000 | |
FHLB borrowings | Federal Home Loan Bank Borrowings, issued 10/10/2018, maturity 1/8/2019 | ||
Debt Instrument [Line Items] | ||
Short-term debt interest rate | 2.54% | |
Short-term debt | $ 50,000 | |
FHLB borrowings | Federal Home Loan Bank Borrowings, issued 12/29/2017, maturity 1/2/2018 | ||
Debt Instrument [Line Items] | ||
Short-term debt interest rate | 1.57% | |
Short-term debt | $ 195,000 | |
FHLB borrowings | Federal Home Loan Bank Borrowings, issued 12/29/2017, maturity 3/29/2018 | ||
Debt Instrument [Line Items] | ||
Short-term debt interest rate | 1.66% | |
Short-term debt | $ 100,000 | |
Line of credit borrowings | ||
Debt Instrument [Line Items] | ||
Short-term debt interest rate | 5.47% | 4.56% |
Short-term debt | $ 4,250 | $ 6,200 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Line of credit borrowings | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 4,250,000 | $ 6,200,000 |
Federal Home Loan Bank | ||
Short-term Debt [Line Items] | ||
Pledged securities, for Federal Home Loan Bank | 3,300,000 | |
Texas Capital Bank | Line of credit borrowings | ||
Short-term Debt [Line Items] | ||
Line of credit facility, current borrowing capacity | 30,000,000 | |
TriState Capital Bank | FHLB borrowings | ||
Short-term Debt [Line Items] | ||
Short-term debt | 365,000,000 | 295,000,000 |
TriState Capital Bank | Federal Home Loan Bank | ||
Short-term Debt [Line Items] | ||
Pledged securities, for Federal Home Loan Bank | 3,300,000 | |
Pledged loans receivable, for Federal Home Loan Bank | 1,110,000,000 | |
TriState Capital Bank | Federal Home Loan Bank | Line of credit borrowings | ||
Short-term Debt [Line Items] | ||
Line of credit facility, current borrowing capacity | 791,900,000 | |
TriState Capital Bank | M&T Bank | Line of credit borrowings | ||
Short-term Debt [Line Items] | ||
Line of credit facility, current borrowing capacity | 10,000,000 | |
Short-term debt | 0 | 0 |
TriState Capital Bank | Texas Capital Bank | Line of credit borrowings | ||
Short-term Debt [Line Items] | ||
Line of credit facility, current borrowing capacity | 20,000,000 | |
Short-term debt | 0 | $ 0 |
TriState Capital Bank | PNC | Line of credit borrowings | ||
Short-term Debt [Line Items] | ||
Line of credit facility, current borrowing capacity | $ 2,000,000 |
Borrowings - Interest Expense o
Borrowings - Interest Expense of Borrowings by Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Interest expense on borrowings | $ 7,889 | $ 5,457 | $ 3,692 |
Subordinated notes payable | |||
Debt Instrument [Line Items] | |||
Interest expense on borrowings | 2,215 | 2,215 | 2,215 |
FHLB borrowings | |||
Debt Instrument [Line Items] | |||
Interest expense on borrowings | 5,555 | 3,152 | 1,477 |
Line of credit borrowings | |||
Debt Instrument [Line Items] | |||
Interest expense on borrowings | $ 119 | $ 90 | $ 0 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income tax provision (benefit) reconciled to taxes computed at the statutory federal rate | |||||||||||
Tax provision at statutory rate | $ 12,677 | $ 16,615 | $ 14,591 | ||||||||
Nondeductible expenses | 595 | 294 | 279 | ||||||||
Bank owned life insurance | (360) | (622) | (629) | ||||||||
Stock option exercises and cancellations | (844) | (674) | (484) | ||||||||
State tax expense, net of federal benefit | 1,927 | 1,024 | 1,184 | ||||||||
Impact of change in tax rates | (332) | (2,351) | 0 | ||||||||
Adjustments to prior year tax | (133) | 215 | 46 | ||||||||
Tax exempt income, net of disallowed interest | (79) | (151) | (162) | ||||||||
Renewable energy tax credits | (6,568) | (4,629) | (1,778) | ||||||||
Low income housing tax credits | (95) | (260) | (17) | ||||||||
Historic tax credits | (860) | 0 | 0 | ||||||||
Other | 17 | 21 | 18 | ||||||||
Income tax provision | $ 265 | $ 1,807 | $ 968 | $ 2,905 | $ 842 | $ 2,184 | $ 3,024 | $ 3,432 | $ 5,945 | $ 9,482 | $ 13,048 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Impact of change in tax rates | $ (332) | $ (2,351) | $ 0 |
Net low income housing tax credits, amortization and tax benefits | (95) | (260) | (17) |
Investment in low income housing tax credits | 32,100 | ||
Investment in low income housing tax credits unfunded | 24,300 | ||
Historic tax credits | (860) | 0 | 0 |
Investment in low income housing tax credits | 3,100 | ||
Investment in low income housing tax credits unfunded | 1,800 | ||
Net operating loss carryforwards - state | 1,900 | ||
General business credits | 4,424 | 0 | |
Estimated unrecognized tax benefits | $ 605 | $ 620 | $ 390 |
Income Taxes - Income Tax Compo
Income Taxes - Income Tax Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||
Current income tax provision (benefit) - federal | $ 2,712 | $ (2,324) | $ 7,781 | ||||||||
Current income tax provision - state | 2,999 | 696 | 1,592 | ||||||||
Deferred tax provision - federal | 904 | 10,050 | 3,322 | ||||||||
Deferred tax provision (benefit) - state | (670) | 1,060 | 353 | ||||||||
Income tax provision | $ 265 | $ 1,807 | $ 968 | $ 2,905 | $ 842 | $ 2,184 | $ 3,024 | $ 3,432 | $ 5,945 | $ 9,482 | $ 13,048 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Components of Deferred Tax Assets [Abstract] | ||
Net operating loss - state | $ 143 | $ 200 |
Start-up expenses | 47 | 65 |
Stock compensation | 3,376 | 2,150 |
Compensation related accruals | 3,976 | 779 |
Leasehold improvement | 205 | 251 |
Allowance for loan loss | 3,157 | 3,376 |
Long-term lease | 158 | 205 |
Reserve for unfunded commitments | 130 | 118 |
Supplemental executive retirement plan | 871 | 824 |
Transaction costs | 138 | 288 |
Earn out liability non-purchase accounting | 298 | 374 |
Unrealized loss on investments and derivatives | 733 | 0 |
State bonus depreciation | 1,326 | 0 |
General business credits | 4,424 | 0 |
Other | 325 | 180 |
Gross deferred tax assets | 19,307 | 8,810 |
Components of Deferred Tax Liabilities [Abstract] | ||
Office properties and equipment | (13,906) | (6,947) |
Prepaid expenses | (370) | 0 |
Deferred loan costs | (4,477) | (2,447) |
Intangibles | (93) | (9) |
Goodwill | (3,813) | (3,003) |
State capital shares tax liability | (161) | (101) |
Unrealized gain on investments and derivatives | 0 | (455) |
Gross deferred tax liability | (22,820) | (12,962) |
Net deferred tax liability | $ (3,513) | $ (4,152) |
Income Taxes - Change in Net De
Income Taxes - Change in Net Deferred Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Deferred tax provision | $ (234) | $ (11,110) |
Deferred tax impact from other comprehensive income | 873 | (246) |
Change in net deferred tax asset or liability | $ 639 | $ (11,356) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning of year balance | $ 744 | $ 599 | $ 353 |
Increases in prior period tax positions | 0 | 18 | 26 |
Decreases in prior period tax positions | (250) | 0 | 0 |
Increases in current period tax positions | 210 | 127 | 220 |
Settlements | 0 | 0 | 0 |
End of year balance | $ 704 | $ 744 | $ 599 |
Regulatory Capital - Narrative
Regulatory Capital - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | ||
Percentage conservation buffer required for capital adequacy to risk weighted assets, fully phased-in | 2.50% | |
Percentage conservation buffer required for capital adequacy to risk weighted assets, one-year period phase-in | 0.625% | |
Capital conservation buffer phase-in period (in years) | 4 years | |
Capital conservation buffer | 1.875% | 1.25% |
Stock Transactions - Narrative
Stock Transactions - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Oct. 16, 2018USD ($)$ / shares | Jul. 17, 2018USD ($)$ / shares | Apr. 27, 2018USD ($)$ / shares | |
Class of Stock [Line Items] | |||||||
Net proceeds from issuance of preferred stock | $ 38,468 | $ 0 | $ 0 | ||||
Cost of shares repurchased | $ 6,807 | $ 8,675 | $ 5,125 | ||||
Depositary Share | |||||||
Class of Stock [Line Items] | |||||||
Issuance of shares (in shares) | shares | 1,610,000 | ||||||
Conversion from depository to preferred shares | 0.025 | ||||||
Liquidation preference (usd per share) | $ / shares | $ 25 | ||||||
Dividends payable (usd per share) | $ / shares | $ 0.42 | $ 0.42 | $ 0.47 | ||||
Depositary Share | Public Offering | |||||||
Class of Stock [Line Items] | |||||||
Issuance of shares (in shares) | shares | 1,610,000 | ||||||
Series A Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Issuance of shares (in shares) | shares | 40,250 | 40,250 | |||||
Dividend rate | 6.75% | ||||||
Liquidation preference (usd per share) | $ / shares | $ 1,000 | ||||||
Net proceeds from issuance of preferred stock | $ 38,500 | ||||||
Basis spread | 3.985% | ||||||
Dividend payable | $ 679 | $ 679 | $ 762 | ||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchase program, remaining authorized repurchase amount | $ 2,200 | ||||||
Shares repurchased (shares) | shares | 263,540 | 376,641 | 374,729 | ||||
Cost of shares repurchased | $ 6,800 | $ 8,700 | $ 5,100 | ||||
Average cost per share (usd per share) | $ / shares | $ 25.83 | $ 23.03 | $ 13.68 |
Regulatory Capital - Schedule o
Regulatory Capital - Schedule of Regulatory Capital (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Total risk-based capital (Amount) | ||
Total risk-based capital | $ 426,066 | $ 343,758 |
Total risk-based capital required for capital adequacy | $ 313,789 | $ 234,576 |
Total risk-based capital (Ratio) | ||
Total risk-based capital, ratio | 10.86% | 11.72% |
Total risk-based capital required for capital adequacy, ratio | 8.00% | 8.00% |
Tier 1 risk-based capital (Amount) | ||
Tier 1 risk-based capital | $ 414,808 | $ 326,594 |
Tier 1 risk-based capital required for capital adequacy | $ 235,342 | $ 175,932 |
Tier 1 risk-based capital (Ratio) | ||
Tier 1 risk-based capital, ratio | 10.58% | 11.14% |
Tier 1 risk-based capital required for capital adequacy, ratio | 6.00% | 6.00% |
Common equity tier one capital (Amount) | ||
Common equity tier one capital | $ 378,117 | $ 326,594 |
Common equity tier one risk-based capital required for capital adequacy | $ 176,506 | $ 131,949 |
Common equity tier one capital (Ratio) | ||
Common equity tier one capital, ratio | 9.64% | 11.14% |
Common equity tier one risk-based capital required for capital adequacy, ratio | 4.50% | 4.50% |
Tier 1 leverage (Amount) | ||
Tier 1 leverage capital | $ 414,808 | $ 326,594 |
Tier 1 leverage capital required for capital adequacy | $ 227,851 | $ 180,090 |
Tier 1 leverage (Ratio) | ||
Tier 1 leverage capital, ratio | 7.28% | 7.25% |
Tier 1 leverage capital required for capital adequacy, ratio | 4.00% | 4.00% |
TriState Capital Bank | ||
Total risk-based capital (Amount) | ||
Total risk-based capital | $ 437,849 | $ 348,378 |
Total risk-based capital required for capital adequacy | 311,497 | 232,392 |
Total risk-based capital required to be well capitalized | $ 389,371 | $ 290,490 |
Total risk-based capital (Ratio) | ||
Total risk-based capital, ratio | 11.25% | 11.99% |
Total risk-based capital required for capital adequacy, ratio | 8.00% | 8.00% |
Total risk-based capital required to be well capitalized, ratio | 10.00% | 10.00% |
Tier 1 risk-based capital (Amount) | ||
Tier 1 risk-based capital | $ 424,418 | $ 337,656 |
Tier 1 risk-based capital required for capital adequacy | 233,622 | 174,294 |
Tier 1 risk-based capital required to be well capitalized | $ 311,497 | $ 232,392 |
Tier 1 risk-based capital (Ratio) | ||
Tier 1 risk-based capital, ratio | 10.90% | 11.62% |
Tier 1 risk-based capital required for capital adequacy, ratio | 6.00% | 6.00% |
Tier 1 risk-based capital required to be well capitalized, ratio | 8.00% | 8.00% |
Common equity tier one capital (Amount) | ||
Common equity tier one capital | $ 424,418 | $ 337,656 |
Common equity tier one risk-based capital required for capital adequacy | 175,217 | 130,720 |
Common equity tier one risk-based capital required to be well capitalized | $ 253,091 | $ 188,818 |
Common equity tier one capital (Ratio) | ||
Common equity tier one capital, ratio | 10.90% | 11.62% |
Common equity tier one risk-based capital required for capital adequacy, ratio | 4.50% | 4.50% |
Common equity tier one risk-based capital required to be well capitalized, ratio | 6.50% | 6.50% |
Tier 1 leverage (Amount) | ||
Tier 1 leverage capital | $ 424,418 | $ 337,656 |
Tier 1 leverage capital required for capital adequacy | 226,762 | 178,979 |
Tier 1 leverage capital required to be well capitalized | $ 283,453 | $ 223,723 |
Tier 1 leverage (Ratio) | ||
Tier 1 leverage capital, ratio | 7.49% | 7.55% |
Tier 1 leverage capital required for capital adequacy, ratio | 4.00% | 4.00% |
Tier 1 leverage capital required to be well capitalized, ratio | 5.00% | 5.00% |
Stock Transactions - Shares Out
Stock Transactions - Shares Outstanding Activity (Details) - shares | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Series A Preferred Stock | ||||
Number of Shares Outstanding [Rollforward] | ||||
Balance, beginning of period (shares) | 0 | |||
Issuance of preferred stock | 40,250 | 40,250 | ||
Balance, ending of period (shares) | 40,250 | 0 | ||
Common Stock | ||||
Number of Shares Outstanding [Rollforward] | ||||
Balance, beginning of period (shares) | 28,591,101 | 28,415,654 | 28,056,195 | |
Issuance of restricted common stock | 423,113 | 396,175 | 497,309 | |
Forfeitures of restricted common stock | (27,250) | (14,637) | (13,121) | |
Exercise of stock options | 155,250 | 170,550 | 250,000 | |
Purchase of treasury stock | (263,540) | (376,641) | (374,729) | |
Balance, ending of period (shares) | 28,878,674 | 28,591,101 | 28,415,654 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Thousands | Feb. 28, 2013USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Employer's contribution to employees' 401(k) plan, percent | 3.00% | 3.00% | 3.00% | |
Defined contribution plan eligible to participate age | 21 | |||
Contribution expense, 401(k) | $ 952 | $ 863 | $ 788 | |
Chief executive officer | Supplemental employee retirement plans, defined benefit | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Vesting period (in years) | 5 years | |||
Projected monthly payments | $ 25 | |||
Number of months projected payments paid (in months) | 180 months | |||
Other postretirement benefit expense | $ 127 | $ 513 | $ 919 | |
Discount rate, SERP | 3.70% | 3.59% | 2.15% | |
Liability recorded | $ 3,600 | $ 3,500 | ||
Chief executive officer | Supplemental employee retirement plans, defined benefit | Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Number of months before commencement (in months) | 60 months |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income available to common shareholders | $ 14,441 | $ 13,632 | $ 13,830 | $ 10,401 | $ 12,043 | $ 10,032 | $ 8,421 | $ 7,492 | $ 52,304 | $ 37,988 | $ 28,641 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||||||||||
Basic weighted average common shares outstanding (shares) | 27,583,519 | 27,550,833 | 27,593,725 | ||||||||
Restricted stock - dilutive (shares) | 780,357 | 649,956 | 260,799 | ||||||||
Stock options - dilutive (shares) | 469,520 | 510,533 | 504,628 | ||||||||
Diluted weighted average common shares outstanding (shares) | 28,833,396 | 28,711,322 | 28,359,152 | ||||||||
Earnings per common share: | |||||||||||
Earnings per share, basic (in usd per share) | $ 0.52 | $ 0.49 | $ 0.50 | $ 0.38 | $ 0.44 | $ 0.36 | $ 0.31 | $ 0.27 | $ 1.90 | $ 1.38 | $ 1.04 |
Earnings per share, diluted (in usd per share) | $ 0.50 | $ 0.47 | $ 0.48 | $ 0.36 | $ 0.42 | $ 0.35 | $ 0.29 | $ 0.26 | $ 1.81 | $ 1.32 | $ 1.01 |
Anti-dilutive shares (shares) | 7,000 | 27,000 | 125,500 |
Stock-Based Compensation Prog_3
Stock-Based Compensation Programs - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cost of canceled of stock options | $ 945 | $ 6,200 | ||
Employee stock options and restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 8,200 | $ 5,900 | $ 3,600 | |
2006 plan and omnibus plan | Employee stock options and restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized | 4,000,000 | |||
Number of shares outstanding | 2,047,159 | |||
Number of stock options and restricted shares exercised or vested | 862,793 | |||
Number of shares available for grant | 1,090,048 | |||
2006 plan and omnibus plan | Employee stock options and restricted stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years 6 months | |||
2006 plan and omnibus plan | Employee stock options and restricted stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | |||
2006 plan and omnibus plan | Employee stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares outstanding | 264,697 | 328,697 | 558,277 | 769,643 |
Number of options, canceled | 65,446 | 0 | 1,174,500 | |
Cost of canceled of stock options | $ 945 | $ 6,200 | ||
Number of options, granted | 0 | 0 | 22,000 | |
Weighted average grant date fair value, granted (usd per share) | $ 0 | $ 0 | $ 5.14 | |
Weighted average grant date fair value, exercised (usd per share) | $ 4.94 | $ 4.69 | $ 4.85 | |
Total unrecognized compensation cost related to non-vested options granted under the plan | $ 249 | |||
Weighted average period over which unrecognized compensation cost is expected to be recognized | 1 year 2 months 1 day | |||
Omnibus plan | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average period over which unrecognized compensation cost is expected to be recognized | 2 years 1 month 17 days | |||
Total unrecognized compensation cost related to non-vested restricted shares granted under the plan | $ 12,500 |
Stock-Based Compensation Prog_4
Stock-Based Compensation Programs - Valuation Assumptions (Details) - 2006 plan and omnibus plan - Employee stock options | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected dividend yield | 0.00% |
Expected volatility | 35.90% |
Expected term (years) | 6 years 10 months 24 days |
Risk-free interest rate | 1.70% |
Stock-Based Compensation Prog_5
Stock-Based Compensation Programs - Stock Option Activity (Details) - 2006 plan and omnibus plan - Employee stock options - $ / shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Options | ||||
Number of options, beginning of period | 946,343 | 1,133,393 | 2,559,393 | |
Number of options, granted | 0 | 0 | 22,000 | |
Number of options, exercised | (155,250) | (170,550) | (250,000) | |
Number of options, forfeited | (15,000) | (16,500) | (23,500) | |
Number of options, canceled | (65,446) | 0 | (1,174,500) | |
Number of options, expired | (16,500) | 0 | 0 | |
Number of options, end of period | 694,147 | 946,343 | 1,133,393 | 2,559,393 |
Number of options, exercisable | 429,450 | 617,646 | 575,116 | |
Weighted Average Exercise Price | ||||
Weighted average exercise price, beginning of period (usd per share) | $ 10.67 | $ 10.53 | $ 10.30 | |
Weighted average exercise price, granted (usd per share) | 0 | 0 | 12.07 | |
Weighted average exercise price, exercised (usd per share) | 10.74 | 9.75 | 10.69 | |
Weighted average exercise price, forfeited (usd per share) | 11.74 | 10.30 | 11.77 | |
Weighted average exercise price, canceled (usd per share) | 10.30 | 0 | 10 | |
Weighted average exercise price, expired (usd per share) | 13.53 | 0 | 0 | |
Weighted average exercise price, end of period (usd per share) | 10.60 | 10.67 | 10.53 | $ 10.30 |
Weighted average exercise price, exercisable (usd per share) | $ 9.97 | $ 10.16 | $ 10.01 | |
Weighted Average Remaining Contractual Term (years) | ||||
Weighted average remaining contractual term (years) | 4 years 3 months 4 days | 5 years 4 days | 5 years 9 months 4 days | 3 years 11 months 23 days |
Weighted average remaining contractual term, exercisable (years) | 3 years 5 months 26 days | 4 years 3 months | 4 years 3 months 26 days |
Stock-Based Compensation Prog_6
Stock-Based Compensation Programs - Non-vested Stock Options Activity (Details) - 2006 plan and omnibus plan - Employee stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Options | |||
Number of options, beginning of period | 328,697 | 558,277 | 769,643 |
Number of options, granted | 0 | 0 | 22,000 |
Number of options, vested | (49,000) | (213,080) | (209,866) |
Number of options, forfeited | (15,000) | (16,500) | (23,500) |
Number of options, end of period | 264,697 | 328,697 | 558,277 |
Weighted Average Grant-Date Fair Value | |||
Weighted average grant-date fair value, beginning of period (usd per share) | $ 4.94 | $ 4.95 | $ 4.93 |
Weighted average grant date fair value, granted (usd per share) | 0 | 0 | 5.14 |
Weighted average grant-date fair value, vested (usd per share) | 4.82 | 4.97 | 3.73 |
Weighted average grant-date fair value, forfeited (usd per share) | 5.01 | 4.99 | 5.16 |
Weighted average grant-date fair value, end of period (usd per share) | $ 4.96 | $ 4.94 | $ 4.95 |
Stock-Based Compensation Prog_7
Stock-Based Compensation Programs - Non-vested Restricted Shares (Details) - Omnibus plan - Restricted stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | |||
Number of restricted shares, beginning of period | 1,137,843 | 783,305 | 305,916 |
Number of restricted shares, grated | 423,113 | 396,175 | 497,309 |
Number of restricted shares, vested | (180,694) | (27,000) | (6,799) |
Number of restricted shares, forfeited | (27,250) | (14,637) | (13,121) |
Number of restricted shares, end of period | 1,353,012 | 1,137,843 | 783,305 |
Weighted Average Grant-Date Fair Value | |||
Weighted average grant-date fair value, beginning of period (usd per share) | $ 15.54 | $ 12.05 | $ 10.55 |
Weighted average grant-date fair value, granted (usd per share) | 23.90 | 22.07 | 12.96 |
Weighted average grant-date fair value, vested (usd per share) | 10.68 | 10.66 | 11.95 |
Weighted average grant-date fair value, forfeited (usd per share) | 20.61 | 13.87 | 11.76 |
Weighted average grant-date fair value, end of period (usd per share) | $ 18.70 | $ 15.54 | $ 12.05 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activity - Financial Position, Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | $ 26,907 | $ 13,761 |
Liability derivatives, fair value | 25,518 | 12,078 |
Other assets | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | 26,907 | 13,761 |
Other liabilities | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives, fair value | 25,518 | 12,078 |
Designated as hedging instrument | Other assets | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | 1,384 | 1,650 |
Designated as hedging instrument | Other liabilities | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives, fair value | 0 | 9 |
Not designated as hedging instrument | Other assets | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives, fair value | 25,523 | 12,111 |
Not designated as hedging instrument | Other liabilities | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives, fair value | $ 25,518 | $ 12,069 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activity - Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Assets | $ 26,907 | $ 13,761 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets presented in the Statement of Financial Position | 26,907 | 13,761 |
Financial Instruments | (9,587) | (5,677) |
Cash Collateral Received | 0 | 0 |
Net Amount | $ 17,320 | $ 8,084 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activity - Offsetting of Derivative Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Liabilities | $ 25,518 | $ 12,078 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities presented in the Statement of Financial Position | 25,518 | 12,078 |
Financial Instruments | (9,587) | (5,677) |
Cash Collateral Posted | (3,941) | (124) |
Net Amount | $ 11,990 | $ 6,277 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activity - Gain (Loss) in Statement of Financial Performance (Details) - Interest rate swaps - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Not designated as hedging instrument | Non-interest income | |||
Derivatives, Fair Value [Line Items] | |||
Realized Gain (Loss) Recognized in Income on Derivatives | $ 14 | $ (1) | $ 528 |
Fair value hedging | Designated as hedging instrument | |||
Derivatives, Fair Value [Line Items] | |||
Realized Gain (Loss) Recognized in Income on Derivatives | (9) | (56) | (84) |
Fair value hedging | Designated as hedging instrument | Interest income | |||
Derivatives, Fair Value [Line Items] | |||
Realized Gain (Loss) Recognized in Income on Derivatives | (9) | (60) | (88) |
Fair value hedging | Designated as hedging instrument | Non-interest income | |||
Derivatives, Fair Value [Line Items] | |||
Realized Gain (Loss) Recognized in Income on Derivatives | 0 | 4 | 4 |
Cash flow hedging | Designated as hedging instrument | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives | 1,027 | 287 | 1,750 |
Cash flow hedging | Designated as hedging instrument | Interest expense | |||
Derivatives, Fair Value [Line Items] | |||
Realized Gain (Loss) Recognized in Income on Derivatives | $ 1,380 | $ 371 | $ (43) |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activity - Narrative (Details) - Interest rate swaps $ in Millions | Dec. 31, 2018USD ($) |
Derivatives, Fair Value [Line Items] | |
Termination value of derivatives, including accrued interest, in a net liability position | $ 6.1 |
Collateral already posted amount | 5.8 |
Not designated as hedging instrument | |
Derivatives, Fair Value [Line Items] | |
Derivative, aggregate notional amount | $ 2,040 |
Derivatives and Hedging Activ_8
Derivatives and Hedging Activity - Interest Rate Derivative Transactions (Details) - Cash flow hedging - Interest rate swaps - Designated as hedging instrument $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Derivative [Line Items] | |
Notional Amount | $ 150,000 |
Estimated Increase/(Decrease) to Interest Expense in the Next Twelve Months | (1,203) |
Issued 6/29/2016 | |
Derivative [Line Items] | |
Notional Amount | 100,000 |
Estimated Increase/(Decrease) to Interest Expense in the Next Twelve Months | $ (958) |
Remaining Term (in Months) | 6 months |
Issued 1/8/2018 | |
Derivative [Line Items] | |
Notional Amount | $ 50,000 |
Estimated Increase/(Decrease) to Interest Expense in the Next Twelve Months | $ (245) |
Remaining Term (in Months) | 24 months |
Disclosures About Fair Value _3
Disclosures About Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Debt securities available-for-sale | $ 233,296 | $ 138,850 |
Equity securities | 12,661 | 8,635 |
Level 1 | ||
Financial assets: | ||
Equity securities | 12,661 | 8,635 |
Level 2 | ||
Financial assets: | ||
Debt securities available-for-sale | 233,296 | 138,850 |
Level 3 | ||
Financial liabilities: | ||
Acquisition earn out liability | 2,920 | 0 |
Fair value, measurements, recurring | ||
Financial assets: | ||
Total financial assets | 272,864 | 161,246 |
Financial liabilities: | ||
Acquisition earn out liability | 2,920 | |
Total financial liabilities | 28,438 | 12,078 |
Fair value, measurements, recurring | Level 1 | ||
Financial assets: | ||
Total financial assets | 12,661 | 8,635 |
Financial liabilities: | ||
Acquisition earn out liability | 0 | |
Total financial liabilities | 0 | 0 |
Fair value, measurements, recurring | Level 2 | ||
Financial assets: | ||
Total financial assets | 260,203 | 152,611 |
Financial liabilities: | ||
Acquisition earn out liability | 0 | |
Total financial liabilities | 25,518 | 12,078 |
Fair value, measurements, recurring | Level 3 | ||
Financial assets: | ||
Total financial assets | 0 | 0 |
Financial liabilities: | ||
Acquisition earn out liability | 2,920 | |
Total financial liabilities | 2,920 | 0 |
Fair value, measurements, recurring | Interest rate swaps | ||
Financial assets: | ||
Interest rate swaps | 26,907 | 13,761 |
Financial liabilities: | ||
Interest rate swaps | 25,518 | 12,078 |
Fair value, measurements, recurring | Interest rate swaps | Level 1 | ||
Financial assets: | ||
Interest rate swaps | 0 | 0 |
Financial liabilities: | ||
Interest rate swaps | 0 | 0 |
Fair value, measurements, recurring | Interest rate swaps | Level 2 | ||
Financial assets: | ||
Interest rate swaps | 26,907 | 13,761 |
Financial liabilities: | ||
Interest rate swaps | 25,518 | 12,078 |
Fair value, measurements, recurring | Interest rate swaps | Level 3 | ||
Financial assets: | ||
Interest rate swaps | 0 | 0 |
Financial liabilities: | ||
Interest rate swaps | 0 | 0 |
Fair value, measurements, recurring | Corporate bonds | ||
Financial assets: | ||
Debt securities available-for-sale | 151,063 | 61,689 |
Fair value, measurements, recurring | Corporate bonds | Level 1 | ||
Financial assets: | ||
Debt securities available-for-sale | 0 | 0 |
Fair value, measurements, recurring | Corporate bonds | Level 2 | ||
Financial assets: | ||
Debt securities available-for-sale | 151,063 | 61,689 |
Fair value, measurements, recurring | Corporate bonds | Level 3 | ||
Financial assets: | ||
Debt securities available-for-sale | 0 | 0 |
Fair value, measurements, recurring | Trust preferred securities | ||
Financial assets: | ||
Debt securities available-for-sale | 16,849 | 18,581 |
Fair value, measurements, recurring | Trust preferred securities | Level 1 | ||
Financial assets: | ||
Debt securities available-for-sale | 0 | 0 |
Fair value, measurements, recurring | Trust preferred securities | Level 2 | ||
Financial assets: | ||
Debt securities available-for-sale | 16,849 | 18,581 |
Fair value, measurements, recurring | Trust preferred securities | Level 3 | ||
Financial assets: | ||
Debt securities available-for-sale | 0 | 0 |
Fair value, measurements, recurring | Non-agency collateralized loan obligations | ||
Financial assets: | ||
Debt securities available-for-sale | 390 | 805 |
Fair value, measurements, recurring | Non-agency collateralized loan obligations | Level 1 | ||
Financial assets: | ||
Debt securities available-for-sale | 0 | 0 |
Fair value, measurements, recurring | Non-agency collateralized loan obligations | Level 2 | ||
Financial assets: | ||
Debt securities available-for-sale | 390 | 805 |
Fair value, measurements, recurring | Non-agency collateralized loan obligations | Level 3 | ||
Financial assets: | ||
Debt securities available-for-sale | 0 | 0 |
Fair value, measurements, recurring | Agency collateralized mortgage obligations | ||
Financial assets: | ||
Debt securities available-for-sale | 33,718 | 38,822 |
Fair value, measurements, recurring | Agency collateralized mortgage obligations | Level 1 | ||
Financial assets: | ||
Debt securities available-for-sale | 0 | 0 |
Fair value, measurements, recurring | Agency collateralized mortgage obligations | Level 2 | ||
Financial assets: | ||
Debt securities available-for-sale | 33,718 | 38,822 |
Fair value, measurements, recurring | Agency collateralized mortgage obligations | Level 3 | ||
Financial assets: | ||
Debt securities available-for-sale | 0 | 0 |
Fair value, measurements, recurring | Agency mortgage-backed securities | ||
Financial assets: | ||
Debt securities available-for-sale | 21,264 | 18,953 |
Fair value, measurements, recurring | Agency mortgage-backed securities | Level 1 | ||
Financial assets: | ||
Debt securities available-for-sale | 0 | 0 |
Fair value, measurements, recurring | Agency mortgage-backed securities | Level 2 | ||
Financial assets: | ||
Debt securities available-for-sale | 21,264 | 18,953 |
Fair value, measurements, recurring | Agency mortgage-backed securities | Level 3 | ||
Financial assets: | ||
Debt securities available-for-sale | 0 | 0 |
Fair value, measurements, recurring | Agency debentures | ||
Financial assets: | ||
Debt securities available-for-sale | 10,012 | |
Fair value, measurements, recurring | Agency debentures | Level 1 | ||
Financial assets: | ||
Debt securities available-for-sale | 0 | |
Fair value, measurements, recurring | Agency debentures | Level 2 | ||
Financial assets: | ||
Debt securities available-for-sale | 10,012 | |
Fair value, measurements, recurring | Agency debentures | Level 3 | ||
Financial assets: | ||
Debt securities available-for-sale | 0 | |
Fair value, measurements, recurring | Equity securities | ||
Financial assets: | ||
Equity securities | 12,661 | 8,635 |
Fair value, measurements, recurring | Equity securities | Level 1 | ||
Financial assets: | ||
Equity securities | 12,661 | 8,635 |
Fair value, measurements, recurring | Equity securities | Level 2 | ||
Financial assets: | ||
Equity securities | 0 | 0 |
Fair value, measurements, recurring | Equity securities | Level 3 | ||
Financial assets: | ||
Equity securities | $ 0 | $ 0 |
Disclosures About Fair Value _4
Disclosures About Fair Value of Financial Instruments - Fair Value Measurements, Nonrecurring (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Level 3 | ||
Financial assets: | ||
Other real estate owned | $ 3,424 | $ 3,576 |
Fair value, measurements, nonrecurring | ||
Financial assets: | ||
Loans measured for impairment, net | 1,800 | 4,047 |
Other real estate owned | 3,424 | 3,576 |
Total assets | 5,224 | 7,623 |
Fair value, measurements, nonrecurring | Level 1 | ||
Financial assets: | ||
Loans measured for impairment, net | 0 | 0 |
Other real estate owned | 0 | 0 |
Total assets | 0 | 0 |
Fair value, measurements, nonrecurring | Level 2 | ||
Financial assets: | ||
Loans measured for impairment, net | 0 | 0 |
Other real estate owned | 0 | 0 |
Total assets | 0 | 0 |
Fair value, measurements, nonrecurring | Level 3 | ||
Financial assets: | ||
Loans measured for impairment, net | 1,800 | 4,047 |
Other real estate owned | 3,424 | 3,576 |
Total assets | $ 5,224 | $ 7,623 |
Disclosures About Fair Value _5
Disclosures About Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Specific allowance for loan losses | $ 437 | $ 2,507 |
Disclosures About Fair Value _6
Disclosures About Fair Value of Financial Instruments - Fair Value Inputs, Assets, Quantitative Information (Details) - Level 3 $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Acquisition earn out liability | Income approach | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 2,920 | |
Acquisition earn out liability | Income approach | Run-rate revenue multiple; client retention | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Acquisition earn out liability multiple | 1.6 | |
Loans measured for impairment, net | Appraisal value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 1,800 | $ 676 |
Loans measured for impairment, net | Appraisal value | Discount due to restructured nature of operations/Discount due to salability conditions | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Weighted Average Multiple/ Discount Rate | 16.00% | 0.00% |
Loans measured for impairment, net | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 3,371 | |
Loans measured for impairment, net | Discounted cash flow | Discount due to restructured nature of operations/Discount due to salability conditions | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Weighted Average Multiple/ Discount Rate | 6.00% | |
Other real estate owned | Appraisal value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 3,424 | $ 3,576 |
Other real estate owned | Appraisal value | Discount due to restructured nature of operations/Discount due to salability conditions | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Weighted Average Multiple/ Discount Rate | 10.00% | 10.00% |
Disclosures About Fair Value _7
Disclosures About Fair Value of Financial Instruments - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Debt securities available-for-sale | $ 233,296 | $ 138,850 |
Debt securities held-to-maturity | 196,823 | 60,141 |
Equity securities | 12,661 | 8,635 |
Investment management fees receivable, net | 7,299 | 7,720 |
Interest rate swaps | 26,907 | 13,761 |
Financial liabilities: | ||
Interest rate swaps | 25,518 | 12,078 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 189,985 | 156,153 |
Equity securities | 12,661 | 8,635 |
Level 2 | ||
Financial assets: | ||
Debt securities available-for-sale | 233,296 | 138,850 |
Debt securities held-to-maturity | 196,823 | 60,141 |
Federal Home Loan Bank stock | 24,671 | 13,792 |
Accrued interest receivable | 20,702 | 13,519 |
Investment management fees receivable, net | 7,299 | 7,720 |
Bank owned life insurance | 68,309 | 66,593 |
Interest rate swaps | 26,907 | 13,761 |
Financial liabilities: | ||
Deposits | 5,048,079 | 3,985,883 |
Borrowings, net | 404,084 | 336,051 |
Interest rate swaps | 25,518 | 12,078 |
Level 3 | ||
Financial assets: | ||
Loans held-for-investment, net | 5,119,562 | 4,167,775 |
Other real estate owned | 3,424 | 3,576 |
Financial liabilities: | ||
Acquisition earn out liability | 2,920 | 0 |
Carrying amount | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 189,985 | 156,153 |
Equity securities | 12,661 | 8,635 |
Carrying amount | Level 2 | ||
Financial assets: | ||
Debt securities available-for-sale | 233,296 | 138,850 |
Debt securities held-to-maturity | 196,131 | 59,275 |
Federal Home Loan Bank stock | 24,671 | 13,792 |
Accrued interest receivable | 20,702 | 13,519 |
Investment management fees receivable, net | 7,299 | 7,720 |
Bank owned life insurance | 68,309 | 66,593 |
Interest rate swaps | 26,907 | 13,761 |
Financial liabilities: | ||
Deposits | 5,050,461 | 3,987,611 |
Borrowings, net | 404,166 | 335,913 |
Interest rate swaps | 25,518 | 12,078 |
Carrying amount | Level 3 | ||
Financial assets: | ||
Loans held-for-investment, net | 5,119,665 | 4,169,827 |
Other real estate owned | 3,424 | 3,576 |
Financial liabilities: | ||
Acquisition earn out liability | $ 2,920 | $ 0 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) - Schedule of Changes to AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | $ 389,071 | $ 351,807 | $ 325,977 |
Reclassification for equity securities under ASU 2016-01 (see Note 1) | 533 | ||
Other comprehensive income (loss) | (3,137) | 416 | 2,273 |
Balance, end of period | 479,354 | 389,071 | 351,807 |
Investment Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 172 | (297) | (1,443) |
Change in unrealized holding gains (losses) | (2,913) | 655 | 1,166 |
Losses (gains) reclassified from other comprehensive income | 53 | (186) | (20) |
Other comprehensive income (loss) | 469 | 1,146 | |
Balance, end of period | (2,363) | 172 | (297) |
Investment Securities | Adjustments for New Accounting Pronouncement | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) | (2,535) | ||
Investment Securities | ASU 2016-01 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification for equity securities under ASU 2016-01 (see Note 1) | 286 | ||
Investment Securities | ASU 2018-02 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification for certain income tax effects under ASU 2018-02 | 39 | ||
Derivatives | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 1,074 | 1,127 | 0 |
Change in unrealized holding gains (losses) | 773 | 180 | 1,100 |
Losses (gains) reclassified from other comprehensive income | (1,050) | (233) | 27 |
Other comprehensive income (loss) | (53) | 1,127 | |
Balance, end of period | 1,032 | 1,074 | 1,127 |
Derivatives | Adjustments for New Accounting Pronouncement | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) | (42) | ||
Derivatives | ASU 2016-01 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification for equity securities under ASU 2016-01 (see Note 1) | 0 | ||
Derivatives | ASU 2018-02 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification for certain income tax effects under ASU 2018-02 | 235 | ||
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 1,246 | 830 | (1,443) |
Change in unrealized holding gains (losses) | (2,140) | 835 | 2,266 |
Losses (gains) reclassified from other comprehensive income | (997) | (419) | 7 |
Other comprehensive income (loss) | (3,137) | 416 | 2,273 |
Balance, end of period | (1,331) | 1,246 | $ 830 |
Total | Adjustments for New Accounting Pronouncement | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) | (2,577) | ||
Total | ASU 2016-01 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification for equity securities under ASU 2016-01 (see Note 1) | 286 | $ 286 | |
Total | ASU 2018-02 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification for certain income tax effects under ASU 2018-02 | $ 274 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - Owned by a director $ in Millions | Dec. 31, 2018USD ($)loans |
Related Party Transaction [Line Items] | |
Number of loans outstanding to directors | loans | 4 |
Loans outstanding to directors | $ 11.1 |
Deposits outstanding from directors and their related interests | $ 20.8 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | $ 145 | $ 109 | $ 104 |
Aircraft charter | Owned by a director | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | $ 145 | $ 109 | $ 104 |
Condensed Parent Company Only_3
Condensed Parent Company Only Financial Statements - Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Balance Sheet Statement [Line Items] | ||||
Cash and cash equivalents | $ 189,985 | $ 156,153 | ||
Equity securities | 12,661 | 8,635 | ||
Prepaid expenses and other assets | 89,947 | 73,290 | ||
Total assets | 6,035,655 | 4,777,897 | ||
Borrowings, net | 404,166 | 335,913 | ||
Other accrued expenses and other liabilities | 90,037 | 58,651 | ||
Shareholders’ equity | 479,354 | 389,071 | $ 351,807 | $ 325,977 |
Total liabilities and shareholders’ equity | 6,035,655 | 4,777,897 | ||
Parent company | ||||
Condensed Balance Sheet Statement [Line Items] | ||||
Cash and cash equivalents | 3,561 | 3,986 | ||
Equity securities | 12,661 | 8,635 | ||
Investment in subsidiaries | 504,711 | 418,189 | ||
Prepaid expenses and other assets | 1,648 | 541 | ||
Total assets | 522,581 | 431,351 | ||
Borrowings, net | 39,166 | 40,913 | ||
Other accrued expenses and other liabilities | 4,061 | 1,367 | ||
Shareholders’ equity | 479,354 | 389,071 | ||
Total liabilities and shareholders’ equity | $ 522,581 | $ 431,351 |
Condensed Parent Company Only_4
Condensed Parent Company Only Financial Statements - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Income Statement [Line Items] | |||||||||||
Total interest income | $ 58,162 | $ 52,424 | $ 47,784 | $ 41,416 | $ 37,868 | $ 35,575 | $ 32,115 | $ 28,737 | $ 199,786 | $ 134,295 | $ 98,312 |
Interest expense | 28,630 | 23,605 | 18,993 | 15,154 | 13,069 | 11,970 | 10,082 | 7,821 | 86,382 | 42,942 | 23,499 |
Net interest income | 29,532 | 28,819 | 28,791 | 26,262 | 24,799 | 23,605 | 22,033 | 20,916 | 113,404 | 91,353 | 74,813 |
Non-interest income (loss) | 11,575 | 12,751 | 12,502 | 11,089 | 12,139 | 11,706 | 11,712 | 11,409 | 47,917 | 46,966 | 46,508 |
Non-interest expense | 26,303 | 25,686 | 25,318 | 23,850 | 25,718 | 22,812 | 21,784 | 21,158 | 101,157 | 91,472 | 78,794 |
Income before tax | 15,385 | 16,118 | 15,560 | 13,306 | 12,885 | 12,216 | 11,445 | 10,924 | 60,369 | 47,470 | 41,689 |
Income tax expense | 265 | 1,807 | 968 | 2,905 | 842 | 2,184 | 3,024 | 3,432 | 5,945 | 9,482 | 13,048 |
Net income | $ 15,120 | $ 14,311 | $ 14,592 | $ 10,401 | $ 12,043 | $ 10,032 | $ 8,421 | $ 7,492 | 54,424 | 37,988 | 28,641 |
Parent company | |||||||||||
Condensed Income Statement [Line Items] | |||||||||||
Interest income | 284 | 279 | 301 | ||||||||
Dividends received from subsidiaries | 3,000 | 3,000 | 23,100 | ||||||||
Total interest income | 3,284 | 3,279 | 23,401 | ||||||||
Interest expense | 2,334 | 2,305 | 2,215 | ||||||||
Net interest income | 950 | 974 | 21,186 | ||||||||
Non-interest income (loss) | (774) | 0 | 0 | ||||||||
Non-interest expense | 749 | 371 | 370 | ||||||||
Income before tax | (573) | 603 | 20,816 | ||||||||
Income tax expense | (490) | (251) | (877) | ||||||||
Net income | (83) | 854 | 21,693 | ||||||||
Undisbursed income of subsidiaries | 54,507 | 37,134 | 6,948 | ||||||||
Net income | $ 54,424 | $ 37,988 | $ 28,641 |
Condensed Parent Company Only_5
Condensed Parent Company Only Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Cash Flow Statement [Line Items] | |||
Unrealized loss from equity securities | $ 775 | $ 0 | $ 0 |
Amortization of deferred financing costs | 203 | 203 | 202 |
Increase in accrued interest payable | 2,705 | 632 | 105 |
Net cash provided by operating activities | 82,698 | 38,213 | 30,109 |
Purchase of equity securities | (5,224) | (266) | (284) |
Net cash used in investing activities | (1,210,029) | (776,074) | (596,075) |
Net proceeds from issuance of preferred stock | 38,468 | 0 | 0 |
Net proceeds from exercise of stock options | 1,667 | 1,663 | 2,674 |
Cancellation of stock options | (945) | 0 | (6,200) |
Purchase of treasury stock | (6,807) | (8,675) | (5,125) |
Dividends paid on preferred stock | (2,120) | 0 | 0 |
Net cash provided by financing activities | 1,161,163 | 790,020 | 573,284 |
Net change in cash and cash equivalents during the period | 33,832 | 52,159 | 7,318 |
Cash and cash equivalents at beginning of the period | 156,153 | 103,994 | 96,676 |
Cash and cash equivalents at end of the period | 189,985 | 156,153 | 103,994 |
Parent company | |||
Condensed Cash Flow Statement [Line Items] | |||
Net income | 54,424 | 37,988 | 28,641 |
Undisbursed income of subsidiaries | (54,507) | (37,134) | (6,948) |
Unrealized loss from equity securities | 775 | 0 | 0 |
Amortization of deferred financing costs | 203 | 203 | 202 |
Increase in accrued interest payable | (19) | 19 | 0 |
Decrease (increase) in other assets | (784) | 238 | (913) |
Increase (decrease) in other liabilities | 2,729 | (777) | 776 |
Net cash provided by operating activities | 2,821 | 537 | 21,758 |
Purchase of equity securities | (5,224) | (267) | (285) |
Net payments for investments in subsidiaries | (26,335) | (200) | (13,030) |
Net cash used in investing activities | (31,559) | (467) | (13,315) |
Net proceeds from issuance of preferred stock | 38,468 | 0 | 0 |
Net increase (decrease) in line of credit advances | (1,950) | 6,200 | 0 |
Net proceeds from exercise of stock options | 1,667 | 1,663 | 2,674 |
Cancellation of stock options | (945) | 0 | (6,200) |
Purchase of treasury stock | (6,807) | (8,675) | (5,125) |
Dividends paid on preferred stock | (2,120) | 0 | 0 |
Net cash provided by financing activities | 28,313 | (812) | (8,651) |
Net change in cash and cash equivalents during the period | (425) | (742) | (208) |
Cash and cash equivalents at beginning of the period | 3,986 | 4,728 | 4,936 |
Cash and cash equivalents at end of the period | $ 3,561 | $ 3,986 | $ 4,728 |
Segments (Details)
Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Assets | $ 6,035,655 | $ 4,777,897 | $ 6,035,655 | $ 4,777,897 | |||||||
Income statement data: | |||||||||||
Interest income | 58,162 | $ 52,424 | $ 47,784 | $ 41,416 | 37,868 | $ 35,575 | $ 32,115 | $ 28,737 | 199,786 | 134,295 | $ 98,312 |
Interest expense | 28,630 | 23,605 | 18,993 | 15,154 | 13,069 | 11,970 | 10,082 | 7,821 | 86,382 | 42,942 | 23,499 |
Net interest income | 29,532 | 28,819 | 28,791 | 26,262 | 24,799 | 23,605 | 22,033 | 20,916 | 113,404 | 91,353 | 74,813 |
Provision (credit) for loan losses | (581) | (234) | 415 | 195 | (1,665) | 283 | 516 | 243 | (205) | (623) | 838 |
Net interest income after provision for loan losses | 30,113 | 29,053 | 28,376 | 26,067 | 26,464 | 23,322 | 21,517 | 20,673 | 113,609 | 91,976 | 73,975 |
Non-interest income: | |||||||||||
Net loss on the sale and call of debt securities | (76) | 0 | 1 | 5 | 56 | 15 | 241 | (2) | (70) | 310 | 77 |
Other non-interest income (loss) | 2,426 | 2,923 | 2,815 | 2,176 | 2,667 | 2,477 | 2,341 | 2,071 | 10,340 | 9,556 | 9,396 |
Total non-interest income | 11,575 | 12,751 | 12,502 | 11,089 | 12,139 | 11,706 | 11,712 | 11,409 | 47,917 | 46,966 | 46,508 |
Non-interest expense: | |||||||||||
Intangible amortization expense | 503 | 502 | 502 | 461 | 463 | 463 | 462 | 463 | 1,968 | 1,851 | 1,753 |
Change in fair value of acquisition earn out | (218) | 0 | 0 | 0 | (218) | 0 | (3,687) | ||||
Other non-interest expense | 99,407 | 89,621 | 80,728 | ||||||||
Total non-interest expense | 26,303 | 25,686 | 25,318 | 23,850 | 25,718 | 22,812 | 21,784 | 21,158 | 101,157 | 91,472 | 78,794 |
Income before tax | 15,385 | 16,118 | 15,560 | 13,306 | 12,885 | 12,216 | 11,445 | 10,924 | 60,369 | 47,470 | 41,689 |
Income tax expense | 265 | 1,807 | 968 | 2,905 | 842 | 2,184 | 3,024 | 3,432 | 5,945 | 9,482 | 13,048 |
Net income | 15,120 | 14,311 | 14,592 | 10,401 | 12,043 | 10,032 | 8,421 | 7,492 | 54,424 | 37,988 | 28,641 |
Investment management fees | |||||||||||
Non-interest income: | |||||||||||
Total non-interest income | 9,225 | $ 9,828 | $ 9,686 | $ 8,908 | 9,416 | $ 9,214 | $ 9,130 | $ 9,340 | 37,647 | 37,100 | 37,035 |
Operating segments | Bank | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 5,947,165 | 4,691,760 | 5,947,165 | 4,691,760 | |||||||
Income statement data: | |||||||||||
Interest income | 199,510 | 134,029 | 98,027 | ||||||||
Interest expense | 84,055 | 40,649 | 21,300 | ||||||||
Net interest income | 115,455 | 93,380 | 76,727 | ||||||||
Provision (credit) for loan losses | (205) | (623) | 838 | ||||||||
Net interest income after provision for loan losses | 115,660 | 94,003 | 75,889 | ||||||||
Non-interest income: | |||||||||||
Net loss on the sale and call of debt securities | (70) | 310 | 77 | ||||||||
Other non-interest income (loss) | 11,112 | 9,554 | 9,393 | ||||||||
Total non-interest income | 11,042 | 9,864 | 9,470 | ||||||||
Non-interest expense: | |||||||||||
Intangible amortization expense | 0 | 0 | 0 | ||||||||
Change in fair value of acquisition earn out | 0 | 0 | |||||||||
Other non-interest expense | 67,190 | 59,073 | 52,676 | ||||||||
Total non-interest expense | 67,190 | 59,073 | 52,676 | ||||||||
Income before tax | 59,512 | 44,794 | 32,683 | ||||||||
Income tax expense | 5,856 | 9,211 | 9,568 | ||||||||
Net income | 53,656 | 35,583 | 23,115 | ||||||||
Operating segments | Bank | Investment management fees | |||||||||||
Non-interest income: | |||||||||||
Total non-interest income | 0 | 0 | 0 | ||||||||
Operating segments | Investment management | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 92,894 | 84,714 | 92,894 | 84,714 | |||||||
Income statement data: | |||||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Net interest income | 0 | 0 | 0 | ||||||||
Provision (credit) for loan losses | 0 | 0 | 0 | ||||||||
Net interest income after provision for loan losses | 0 | 0 | 0 | ||||||||
Non-interest income: | |||||||||||
Net loss on the sale and call of debt securities | 0 | 0 | 0 | ||||||||
Other non-interest income (loss) | 1 | 2 | 3 | ||||||||
Total non-interest income | 37,940 | 37,311 | 37,261 | ||||||||
Non-interest expense: | |||||||||||
Intangible amortization expense | 1,968 | 1,851 | 1,753 | ||||||||
Change in fair value of acquisition earn out | (218) | (3,687) | |||||||||
Other non-interest expense | 31,760 | 30,387 | 27,905 | ||||||||
Total non-interest expense | 33,510 | 32,238 | 25,971 | ||||||||
Income before tax | 4,430 | 5,073 | 11,290 | ||||||||
Income tax expense | 579 | 522 | 4,357 | ||||||||
Net income | 3,851 | 4,551 | 6,933 | ||||||||
Operating segments | Investment management | Investment management fees | |||||||||||
Non-interest income: | |||||||||||
Total non-interest income | 37,939 | 37,309 | 37,258 | ||||||||
Parent and other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ (4,404) | $ 1,423 | (4,404) | 1,423 | |||||||
Income statement data: | |||||||||||
Interest income | 276 | 266 | 285 | ||||||||
Interest expense | 2,327 | 2,293 | 2,199 | ||||||||
Net interest income | (2,051) | (2,027) | (1,914) | ||||||||
Provision (credit) for loan losses | 0 | 0 | 0 | ||||||||
Net interest income after provision for loan losses | (2,051) | (2,027) | (1,914) | ||||||||
Non-interest income: | |||||||||||
Net loss on the sale and call of debt securities | 0 | 0 | 0 | ||||||||
Other non-interest income (loss) | (773) | 0 | 0 | ||||||||
Total non-interest income | (1,065) | (209) | (223) | ||||||||
Non-interest expense: | |||||||||||
Intangible amortization expense | 0 | 0 | 0 | ||||||||
Change in fair value of acquisition earn out | 0 | 0 | |||||||||
Other non-interest expense | 457 | 161 | 147 | ||||||||
Total non-interest expense | 457 | 161 | 147 | ||||||||
Income before tax | (3,573) | (2,397) | (2,284) | ||||||||
Income tax expense | (490) | (251) | (877) | ||||||||
Net income | (3,083) | (2,146) | (1,407) | ||||||||
Parent and other | Investment management fees | |||||||||||
Non-interest income: | |||||||||||
Total non-interest income | $ (292) | $ (209) | $ (223) |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 17, 2019 | Oct. 16, 2018 | Jul. 17, 2018 | Apr. 27, 2018 |
Series A Preferred Stock | ||||
Subsequent Event [Line Items] | ||||
Dividend payable | $ 679 | $ 679 | $ 762 | |
Series A Preferred Stock | Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Dividend payable | $ 679 | |||
Depositary Share | ||||
Subsequent Event [Line Items] | ||||
Dividends payable (usd per share) | $ 0.42 | $ 0.42 | $ 0.47 | |
Depositary Share | Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Dividends payable (usd per share) | $ 0.42 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income statement data: | |||||||||||
Interest income | $ 58,162 | $ 52,424 | $ 47,784 | $ 41,416 | $ 37,868 | $ 35,575 | $ 32,115 | $ 28,737 | $ 199,786 | $ 134,295 | $ 98,312 |
Interest expense | 28,630 | 23,605 | 18,993 | 15,154 | 13,069 | 11,970 | 10,082 | 7,821 | 86,382 | 42,942 | 23,499 |
Net interest income | 29,532 | 28,819 | 28,791 | 26,262 | 24,799 | 23,605 | 22,033 | 20,916 | 113,404 | 91,353 | 74,813 |
Provision (credit) for loan losses | (581) | (234) | 415 | 195 | (1,665) | 283 | 516 | 243 | (205) | (623) | 838 |
Net interest income after provision for loan losses | 30,113 | 29,053 | 28,376 | 26,067 | 26,464 | 23,322 | 21,517 | 20,673 | 113,609 | 91,976 | 73,975 |
Non-interest income: | |||||||||||
Net gain (loss) on the sale and call of debt securities | (76) | 0 | 1 | 5 | 56 | 15 | 241 | (2) | (70) | 310 | 77 |
Other non-interest income | 2,426 | 2,923 | 2,815 | 2,176 | 2,667 | 2,477 | 2,341 | 2,071 | 10,340 | 9,556 | 9,396 |
Total non-interest income | 11,575 | 12,751 | 12,502 | 11,089 | 12,139 | 11,706 | 11,712 | 11,409 | 47,917 | 46,966 | 46,508 |
Non-interest expense: | |||||||||||
Intangible amortization expense | 503 | 502 | 502 | 461 | 463 | 463 | 462 | 463 | 1,968 | 1,851 | 1,753 |
Change in fair value of acquisition earn out | (218) | 0 | 0 | 0 | (218) | 0 | (3,687) | ||||
Other non-interest expense | 26,018 | 25,184 | 24,816 | 23,389 | 25,255 | 22,349 | 21,322 | 20,695 | 10,813 | 9,834 | 6,791 |
Total non-interest expense | 26,303 | 25,686 | 25,318 | 23,850 | 25,718 | 22,812 | 21,784 | 21,158 | 101,157 | 91,472 | 78,794 |
Income before tax | 15,385 | 16,118 | 15,560 | 13,306 | 12,885 | 12,216 | 11,445 | 10,924 | 60,369 | 47,470 | 41,689 |
Income tax expense | 265 | 1,807 | 968 | 2,905 | 842 | 2,184 | 3,024 | 3,432 | 5,945 | 9,482 | 13,048 |
Net income | 15,120 | 14,311 | 14,592 | 10,401 | 12,043 | 10,032 | 8,421 | 7,492 | 54,424 | 37,988 | 28,641 |
Preferred stock dividends on Series A | 679 | 679 | 762 | 0 | 0 | 0 | 0 | 0 | 2,120 | 0 | 0 |
Net income available to common shareholders | $ 14,441 | $ 13,632 | $ 13,830 | $ 10,401 | $ 12,043 | $ 10,032 | $ 8,421 | $ 7,492 | $ 52,304 | $ 37,988 | $ 28,641 |
Earnings per common share: | |||||||||||
Earnings per share, basic (in usd per share) | $ 0.52 | $ 0.49 | $ 0.50 | $ 0.38 | $ 0.44 | $ 0.36 | $ 0.31 | $ 0.27 | $ 1.90 | $ 1.38 | $ 1.04 |
Earnings per share, diluted (in usd per share) | $ 0.50 | $ 0.47 | $ 0.48 | $ 0.36 | $ 0.42 | $ 0.35 | $ 0.29 | $ 0.26 | $ 1.81 | $ 1.32 | $ 1.01 |
Investment management fees | |||||||||||
Non-interest income: | |||||||||||
Total non-interest income | $ 9,225 | $ 9,828 | $ 9,686 | $ 8,908 | $ 9,416 | $ 9,214 | $ 9,130 | $ 9,340 | $ 37,647 | $ 37,100 | $ 37,035 |