Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 01, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-35070 | |
Entity Registrant Name | BOSTON PRIVATE FINANCIAL HOLDINGS INC | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 04-2976299 | |
Entity Address, Address Line One | Ten Post Office Square | |
Entity Address, City or Town | Boston, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02109 | |
City Area Code | 617 | |
Local Phone Number | 912-1900 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | BPFH | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 83,902,110 | |
Entity Central Index Key | 0000821127 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 65,756 | $ 127,259 |
Investment securities available-for-sale (amortized cost of $960,550 and $1,018,774 at June 30, 2019 and December 31, 2018, respectively) | 966,731 | 994,065 |
Investment securities held-to-maturity (fair value of $53,929 and $68,595 at June 30, 2019 and December 31, 2018, respectively) | 54,482 | 70,438 |
Equity securities at fair value | 19,092 | 14,228 |
Stock in Federal Home Loan Bank and Federal Reserve Bank | 64,453 | 49,263 |
Loans held for sale | 3,640 | 2,812 |
Total loans | 7,080,260 | 6,893,158 |
Less: Allowance for loan losses | 75,067 | 75,312 |
Net loans | 7,005,193 | 6,817,846 |
Other real estate owned (“OREO”) | 0 | 401 |
Premises and equipment, net | 40,244 | 45,412 |
Goodwill | 57,607 | 57,607 |
Intangible assets, net | 10,884 | 12,227 |
Fees receivable | 3,611 | 5,101 |
Accrued interest receivable | 26,411 | 24,366 |
Deferred income taxes, net | 17,183 | 26,638 |
Right-of-use assets | 110,880 | |
Other assets | 266,706 | 246,962 |
Total assets | 8,712,873 | 8,494,625 |
Liabilities: | ||
Deposits | 6,437,963 | 6,781,170 |
Securities sold under agreements to repurchase | 62,372 | 36,928 |
Federal funds purchased | 135,000 | 250,000 |
Federal Home Loan Bank borrowings | 920,068 | 420,144 |
Junior subordinated debentures | 106,363 | 106,363 |
Lease liabilities | 126,740 | |
Other liabilities | 124,370 | 143,540 |
Total liabilities | 7,912,876 | 7,738,145 |
Redeemable Noncontrolling Interests | 1,786 | 2,526 |
Shareholders’ Equity: | ||
Common stock, $1.00 par value; authorized: 170,000,000 shares; issued and outstanding: 83,774,335 shares at June 30, 2019 and 83,655,651 shares at December 31, 2018 | 83,774 | 83,656 |
Additional paid-in capital | 603,869 | 600,196 |
Retained earnings | 106,443 | 87,821 |
Accumulated other comprehensive income/ (loss) | 4,125 | (17,719) |
Total shareholders’ equity | 798,211 | 753,954 |
Total liabilities, redeemable noncontrolling interests and shareholders’ equity | $ 8,712,873 | $ 8,494,625 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) Parentheticals - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Investment securities available-for-sale at amortized cost | $ 960,550 | $ 1,018,774 |
Investment securities held-to-maturity at fair value | $ 53,929 | $ 68,595 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 170,000,000 | 170,000,000 |
Common stock, shares issued (in shares) | 83,774,335 | 83,655,651 |
Common stock, shares, outstanding (in shares) | 83,774,335 | 83,655,651 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest and dividend income: | ||||
Loans | $ 71,943 | $ 64,048 | $ 141,876 | $ 124,977 |
Taxable investment securities | 1,121 | 1,501 | 2,306 | 3,011 |
Non-taxable investment securities | 1,901 | 1,752 | 3,802 | 3,482 |
Mortgage-backed securities | 2,706 | 3,049 | 5,603 | 6,227 |
Short-term investments and other | 1,057 | 1,205 | 1,965 | 2,214 |
Total interest and dividend income | 78,728 | 71,555 | 155,552 | 139,911 |
Interest expense: | ||||
Deposits | 14,515 | 8,365 | 28,573 | 14,889 |
Federal Home Loan Bank borrowings | 5,027 | 4,447 | 7,807 | 7,791 |
Junior subordinated debentures | 1,080 | 1,008 | 2,201 | 1,854 |
Repurchase agreements and other short-term borrowings | 646 | 190 | 1,173 | 449 |
Total interest expense | 21,268 | 14,010 | 39,754 | 24,983 |
Net interest income | 57,460 | 57,545 | 115,798 | 114,928 |
Provision/ (credit) for loan losses | 1,363 | 453 | (63) | (1,342) |
Net interest income after provision/ (credit) for loan losses | 56,097 | 57,092 | 115,861 | 116,270 |
Fees and other income: | ||||
Gain/ (loss) on sale of investments, net | 0 | 7 | 0 | (17) |
Gain/ (loss) on OREO, net | 0 | 0 | 91 | 0 |
Other | 88 | 191 | 965 | 523 |
Total fees and other income | 24,380 | 32,095 | 49,628 | 71,838 |
Operating expense: | ||||
Salaries and employee benefits | 32,706 | 39,433 | 68,432 | 86,517 |
Occupancy and equipment | 7,852 | 8,229 | 16,200 | 15,977 |
Professional services | 3,313 | 2,872 | 6,873 | 6,049 |
Marketing and business development | 1,934 | 2,070 | 3,019 | 3,663 |
Information systems | 5,137 | 6,770 | 10,997 | 12,656 |
Amortization of intangibles | 672 | 749 | 1,344 | 1,499 |
FDIC insurance | 585 | 708 | 1,245 | 1,452 |
Restructuring | 0 | 0 | 1,646 | 0 |
Other | 3,460 | 3,553 | 6,456 | 7,428 |
Total operating expense | 55,659 | 64,384 | 116,212 | 135,241 |
Income before income taxes | 24,818 | 24,803 | 49,277 | 52,867 |
Income tax expense | 5,369 | 17,399 | 10,286 | 23,425 |
Net income from continuing operations | 19,449 | 7,404 | 38,991 | 29,442 |
Net income/ (loss) from discontinued operations | 0 | (2) | 0 | 1,696 |
Net income before attribution to noncontrolling interests | 19,449 | 7,402 | 38,991 | 31,138 |
Less: Net income attributable to noncontrolling interests | 69 | 968 | 169 | 2,018 |
Net income attributable to the Company | 19,380 | 6,434 | 38,822 | 29,120 |
Adjustments to net income attributable to the Company to arrive at net income attributable to common shareholders | (816) | (3,524) | 741 | (3,547) |
Net income attributable to common shareholders, treasury stock method | $ 18,564 | $ 2,910 | $ 39,563 | $ 25,573 |
Basic earnings per share attributable to common shareholders: | ||||
From continuing operations (in dollars per share) | $ 0.22 | $ 0.03 | $ 0.47 | $ 0.29 |
From discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.02 |
Total attributable to common shareholders (in dollars per share) | $ 0.22 | $ 0.03 | $ 0.47 | $ 0.31 |
Weighted average basic common shares outstanding (in shares) | 83,565,780 | 83,509,115 | 83,426,213 | 83,304,573 |
Diluted earnings per share attributable to common shareholders: | ||||
From continuing operations (in dollars per share) | $ 0.22 | $ 0.03 | $ 0.47 | $ 0.28 |
From discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.02 |
Total attributable to common shareholders (in dollars per share) | $ 0.22 | $ 0.03 | $ 0.47 | $ 0.30 |
Weighted average diluted common shares outstanding (in shares) | 84,048,972 | 85,413,575 | 84,036,050 | 85,221,974 |
Investment management fees | ||||
Fees and other income: | ||||
Fees | $ 2,455 | $ 4,227 | $ 5,105 | $ 15,652 |
Wealth advisory fees | ||||
Fees and other income: | ||||
Fees | 8,141 | 13,693 | 16,306 | 27,205 |
Wealth management and trust fees | ||||
Fees and other income: | ||||
Fees | 10,771 | 11,169 | 21,664 | 23,320 |
Other banking fee income | ||||
Fees and other income: | ||||
Fees | 2,867 | 2,745 | 5,366 | 5,018 |
Gain on sale of loans, net | ||||
Fees and other income: | ||||
Fees | $ 58 | $ 63 | $ 131 | $ 137 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income attributable to the Company | $ 19,380 | $ 6,434 | $ 38,822 | $ 29,120 |
Other comprehensive income/ (loss), net of tax: | ||||
Net unrealized gain/ (loss) on securities available-for-sale | 10,665 | (1,953) | 22,233 | (14,848) |
Unrealized gain/ (loss) on cash flow hedges | (6) | 124 | (33) | 712 |
Reclassification adjustment for net realized (gain)/ loss included in net income | (136) | (187) | (356) | (201) |
Net unrealized gain/ (loss) on cash flow hedges | (142) | (63) | (389) | 511 |
Net unrealized gain/ (loss) on other | 0 | 1 | 0 | 1 |
Other comprehensive income/ (loss), net of tax | 10,523 | (2,015) | 21,844 | (14,336) |
Total comprehensive income attributable to the Company, net | $ 29,903 | $ 4,419 | $ 60,666 | $ 14,784 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated other comprehensive income/ (loss) | Noncontrolling interests |
Beginning Balance at Dec. 31, 2017 | $ 785,944 | $ 47,753 | $ 84,208 | $ 607,929 | $ 49,526 | $ (8,658) | $ 5,186 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to the Company | 29,120 | 29,120 | |||||
Other comprehensive income/ (loss), net | (14,336) | (14,336) | |||||
Dividends paid to common shareholders | (20,330) | (20,330) | |||||
Dividends paid to preferred shareholders | (1,738) | (1,738) | |||||
Net change in noncontrolling interests | (3,190) | (3,190) | |||||
Stock Redeemed or Called During Period, Value | (50,000) | (47,753) | (2,247) | ||||
Net proceeds from issuance of: | |||||||
Net proceeds from issuance of common stock | 833 | 63 | 770 | ||||
Net proceeds from issuance of inventive stock grant shares canceled or forfeited and withheld for employee taxes | (1,892) | (236) | (1,656) | ||||
Exercise of warrants | 21 | 294 | (273) | ||||
Amortization of stock compensation and employee stock purchase plan | 3,399 | 3,399 | |||||
Stock options exercised | 1,257 | 150 | 1,107 | ||||
Other equity adjustments | 4,889 | 4,889 | |||||
Ending Balance at Jun. 30, 2018 | 733,977 | 0 | 84,479 | 613,918 | 56,912 | (23,328) | 1,996 |
Beginning Balance at Dec. 31, 2018 | 753,954 | 0 | 83,656 | 600,196 | 87,821 | (17,719) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to the Company | 38,822 | 38,822 | |||||
Other comprehensive income/ (loss), net | 21,844 | 21,844 | |||||
Dividends paid to common shareholders | (20,200) | (20,200) | |||||
Net proceeds from issuance of: | |||||||
Net proceeds from issuance of common stock | 1,133 | 143 | 990 | ||||
Net proceeds from issuance of inventive stock grant shares canceled or forfeited and withheld for employee taxes | (675) | (88) | (587) | ||||
Amortization of stock compensation and employee stock purchase plan | 2,340 | 2,340 | |||||
Stock options exercised | 435 | 63 | 372 | ||||
Other equity adjustments | 558 | 558 | |||||
Ending Balance at Jun. 30, 2019 | $ 798,211 | $ 0 | $ 83,774 | $ 603,869 | $ 106,443 | $ 4,125 | $ 0 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) Parentheticals - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Shares of common stock issued (in shares) | 143,147 | 63,434 |
Incentive stock grant (in shares) | 37,511 | 2,547 |
Stock forfeited (in shares) | 9,377 | 126,752 |
Shares withheld for employee taxes (in shares) | 115,173 | 112,565 |
Dividends paid (in dollars per share) | $ 0.24 | $ 0.24 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income attributable to the Company | $ 38,822 | $ 29,120 |
Adjustments to arrive at net income from continuing operations | ||
Less: Net income attributable to noncontrolling interests | 169 | 2,018 |
Less: Net income from discontinued operations | 0 | (1,696) |
Net income from continuing operations | 38,991 | 29,442 |
Adjustments to reconcile net income from continuing operations to net cash provided by/ (used in) operating activities: | ||
Depreciation and amortization | 11,712 | 11,200 |
Net income attributable to noncontrolling interests | (169) | (2,018) |
Stock compensation, net of cancellations | 2,933 | 3,421 |
Provision/ (credit) for loan losses | (63) | (1,342) |
Loans originated for sale | (17,103) | (24,260) |
Proceeds from sale of loans held for sale | 16,406 | 24,486 |
Deferred income tax expense/ (benefit) | 959 | 8,374 |
Increase in right-of-use assets | (2,419) | 0 |
Increase in operating lease liabilities | 2,476 | 0 |
Net decrease/ (increase) in other operating activities | (26,560) | (17,613) |
Net cash provided by/ (used in) operating activities of continuing operations | 27,163 | 31,690 |
Net cash provided by/ (used in) operating activities of discontinued operations | 0 | 1,696 |
Net cash provided by/ (used in) operating activities | 27,163 | 33,386 |
Investment securities available-for-sale: | ||
Purchases | (9,845) | (9,985) |
Sales | 0 | 24 |
Maturities, calls, redemptions, and principal payments | 64,230 | 65,712 |
Investment securities held-to-maturity: | ||
Purchases | 0 | (11,876) |
Maturities, calls, and principal payments | 15,872 | 7,288 |
Equity securities at fair value: | ||
Purchases | (35,349) | (22,674) |
Sales | 30,485 | 35,526 |
(Investments)/ distributions in trusts, net | 504 | (329) |
Contingent considerations from divestitures | 2,019 | 0 |
(Purchase)/ redemption of Federal Home Loan Bank and Federal Reserve Bank stock | (15,190) | (10,154) |
Net increase in portfolio loans | (188,548) | (263,692) |
Proceeds from recoveries of loans previously charged-off | 577 | 593 |
Proceeds from sale of OREO | 492 | 0 |
Capital expenditures | (811) | (14,453) |
Proceeds from sale of affiliate | 0 | 34,120 |
Net cash provided by/ (used in) investing activities | (135,564) | (189,900) |
Cash flows from financing activities: | ||
Net increase/ (decrease) in deposits | (343,207) | 109,933 |
Net increase/ (decrease) in securities sold under agreements to repurchase | 25,444 | 26,655 |
Net increase/ (decrease) in federal funds purchased | (115,000) | (30,000) |
Net increase/ (decrease) in short-term Federal Home Loan Bank borrowings | 340,000 | 350,000 |
Advances of long-term Federal Home Loan Bank borrowings | 290,000 | 91,444 |
Repayments of long-term Federal Home Loan Bank borrowings | (130,076) | (78,187) |
Redemption of Series D preferred stock | 0 | (50,000) |
Dividends paid to common shareholders | (20,200) | (20,330) |
Dividends paid to preferred shareholders | 0 | (1,738) |
Proceeds from warrant exercises | 0 | 21 |
Proceeds from stock option exercises | 435 | 1,257 |
Proceeds from issuance of common stock | 1,133 | 833 |
Tax withholding for share based compensation awards | (1,268) | (1,914) |
Distributions paid to noncontrolling interests | (169) | (1,958) |
Other equity adjustments | (194) | 4,496 |
Net cash provided by/ (used in) financing activities | 46,898 | 400,512 |
Net increase/ (decrease) in cash and cash equivalents | (61,503) | 243,998 |
Cash and cash equivalents at beginning of year | 127,259 | 120,541 |
Cash and cash equivalents at end of period | 65,756 | 364,539 |
Supplemental disclosure of cash flow items: | ||
Cash paid for interest | 37,382 | 23,742 |
Cash paid for income taxes, (net of refunds received) | 14,277 | 9,827 |
Change in unrealized gain/ (loss) on available-for-sale securities, net of tax | 22,233 | (14,848) |
Change in unrealized gain/ (loss) on cash flow hedges, net of tax | (389) | 511 |
Change in unrealized gain/ (loss) on other, net of tax | 0 | 1 |
Non-cash transactions: | ||
Loans transferred into other real estate owned from loan portfolio | 0 | 108 |
Loans charged-off | (759) | (529) |
Assets transferred into/ (out of) other assets held for sale | $ 0 | $ 21 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Boston Private Financial Holdings, Inc. (the “Company” or “BPFH”), is a bank holding company (the “Holding Company”) with three reportable segments: Private Banking, Wealth Management and Trust, and Affiliate Partners. The Private Banking segment is comprised of the banking operations of Boston Private Bank & Trust Company (the “Bank” or “Boston Private Bank”), a trust company chartered by The Commonwealth of Massachusetts, whose deposits are insured by the Federal Deposit Insurance Corporation (the “FDIC”), and a wholly-owned subsidiary of the Company. Boston Private Bank is a member of the Federal Reserve Bank of Boston. Boston Private Bank primarily operates in three geographic markets: New England, the San Francisco Bay Area, and Southern California. The Private Banking segment is principally engaged in providing private banking services to high net worth individuals, privately-owned businesses and partnerships, and nonprofit organizations. In addition, the Private Banking segment is an active provider of financing for affordable housing, first-time homebuyers, economic development, social services, community revitalization and small businesses. The Wealth Management and Trust segment is comprised of Boston Private Wealth LLC (“Boston Private Wealth”), an independent registered investment adviser (“RIA”), which is a wholly-owned subsidiary of the Bank, and the trust operations of Boston Private Bank. The segment provides comprehensive wealth management solutions for high net worth individuals and families, including customized investment solutions, wealth planning, trust, and family office services. The Wealth Management and Trust segment operates in New England, Southeast Florida, the San Francisco Bay Area, and Southern California. In 2019, the Affiliate Partners segment is comprised solely of Dalton, Greiner, Hartman, Maher & Co., LLC (“DGHM”) and KLS Professional Advisors Group, LLC (“KLS”), each of which are RIAs. DGHM serves the needs of pension funds, endowments, trusts, foundations and select institutions, mutual funds and high net worth individuals and their families throughout the United States and abroad. DGHM specializes in value-driven equity portfolios with products across the capitalization spectrum. DGHM is located in New York, with one affiliate administrative office in South Florida. KLS provides comprehensive, planning-based financial strategies to high net worth individuals and their families, and nonprofit institutions. The firm offers services such as fee-only financial planning, tax planning, tax preparation, estate and insurance planning, retirement planning, charitable planning and intergenerational gifting and succession planning. KLS manages investments covering a wide range of asset classes for both taxable and tax-exempt portfolios. KLS has offices in New York and Southern California. Together, the Wealth Management and Trust and Affiliate Partners segments are referred to as the “Wealth and Investment” businesses. Prior to 2019, the Affiliate Partners segment had four consolidated affiliates included in its results: DGHM; KLS; Anchor Capital Advisors, LLC (“Anchor”); and Bingham, Osborn & Scarborough, LLC (“BOS”). In December 2017, the Company entered into an agreement to sell its entire ownership interest in Anchor in a transaction that closed in April 2018. In October 2018, the Company entered into an agreement to sell its entire ownership interest in BOS to the management team of BOS, which closed in December 2018. The results of Anchor and BOS for the periods held through the respective closing dates are included in the results of the Affiliate Partners segment and the Company. The Company conducts substantially all of its business through its three reportable segments. All significant intercompany accounts and transactions have been eliminated in consolidation, and the portion of income allocated to the owners of DGHM, Anchor, and BOS other than the Company is included in “Net income attributable to noncontrolling interests” in the consolidated statements of operations for the periods owned. Redeemable noncontrolling interests in the consolidated balance sheets reflect the maximum redemption value of agreements with other owners. The unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include all necessary adjustments of a normal recurring nature, which, in the opinion of management, are required for a fair presentation of the results of operations and financial condition of the Company. The interim results of consolidated operations are not necessarily indicative of the results for the entire year. The information in this report should be read in conjunction with the consolidated financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 2018 , as filed with the Securities and Exchange Commission (“SEC”). Prior period amounts are reclassified whenever necessary to conform to the current period presentation. The Company identified an immaterial change relating to the presentation of equity securities at fair value in the Consolidated Statement of Cash Flows. The impact was a change in the presentation of cash flows relating to $22.7 million of purchases and $35.5 million of sales for the six months ended June 30, 2018, which were previously presented as investment securities available-for-sale but should have been presented as equity securities at fair value, within investing activities in the Consolidated Statement of Cash Flows. The Company’s significant accounting policies are described in Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , as filed with the SEC. For interim reporting purposes, the Company follows the same significant accounting policies, except for the following new accounting pronouncements from the Financial Accounting Standards Board (the “FASB”) that were adopted effective January 1, 2019: • In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). This update and the related amendments to Topic 842 require lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”); ASU No. 2018-11, Leases (Topic 842), Targeted Improvements (“ASU 2018-11”); and ASU No. 2019-01, Leases (Topic 842), Codification Improvements (“ASU 2019-01”). The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard was effective on January 1, 2019 and the Company adopted these provisions on January 1, 2019. The most significant effects relate to the recognition of new ROU assets and lease liabilities on the balance sheet for real estate operating leases, providing significant new disclosures about leasing activities, and the impact of additional assets on certain financial measures such as capital ratios and return on average asset ratios. Additionally, the Company elected the package of practical expedients, as prescribed by ASU 2016-02. The Company elected not to reassess whether any expired or existing contracts are or contain leases nor the lease classification of those leases. The Company also elected not to reassess any initial direct costs for any existing leases. On adoption, the Company recognized approximately $124 million of lease liabilities and $108 million of ROU assets. • In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) (“ASU 2018-15”). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in ASU 2018-15. This update is effective on a retrospective basis for the Company beginning January 1, 2021. The Company early adopted this update on January 1, 2019. The adoption of this update did not have an impact on the consolidated financial statements. • In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting (“ASU 2018-16”). ASU 2018-16 introduces OIS Rate based on the SOFR as an acceptable US benchmark interest rate for purposes of applying hedge accounting under Topic 815. This update is effective for interim and annual reporting periods beginning after December 15, 2018 because the Company has already adopted ASU 2017-12. The Company adopted this update on January 1, 2019. The adoption of this update did not have an impact on the consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The treasury stock method of calculating earnings per share (“EPS”) is presented below for the three and six months ended June 30, 2019 and 2018 . The following tables present the computations of basic and diluted EPS: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (In thousands, except share and per share data) Basic earnings per share - Numerator: Net income from continuing operations $ 19,449 $ 7,404 $ 38,991 $ 29,442 Less: Net income attributable to noncontrolling interests 69 968 169 2,018 Net income from continuing operations attributable to the Company 19,380 6,436 38,822 27,424 Decrease/ (increase) in noncontrolling interests’ redemption values (1) (816 ) (408 ) 741 438 Dividends on preferred stock — (3,116 ) — (3,985 ) Total adjustments to income attributable to common shareholders (816 ) (3,524 ) 741 (3,547 ) Net income from continuing operations attributable to common shareholders, treasury stock method 18,564 2,912 39,563 23,877 Net income from discontinued operations — (2 ) — 1,696 Net income attributable to common shareholders, treasury stock method $ 18,564 $ 2,910 $ 39,563 $ 25,573 Basic earnings per share - Denominator: Weighted average basic common shares outstanding 83,565,780 83,509,115 83,426,213 83,304,573 Per share data - Basic earnings per share from: Continuing operations $ 0.22 $ 0.03 $ 0.47 $ 0.29 Discontinued operations $ — $ — $ — $ 0.02 Total attributable to common shareholders $ 0.22 $ 0.03 $ 0.47 $ 0.31 Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (In thousands, except share and per share data) Diluted earnings per share - Numerator: Net income from continuing operations attributable to common shareholders, after assumed dilution $ 18,564 $ 2,912 $ 39,563 $ 23,877 Net income from discontinued operations — (2 ) — 1,696 Net income attributable to common shareholders, after assumed dilution $ 18,564 $ 2,910 $ 39,563 $ 25,573 Diluted earnings per share - Denominator: Weighted average basic common shares outstanding 83,565,780 83,509,115 83,426,213 83,304,573 Dilutive effect of: Time-based and market-based stock options, performance-based and time-based restricted stock, and performance-based and time-based restricted stock units, and other dilutive securities (2) 483,192 1,076,049 609,837 1,112,938 Warrants to purchase common stock — 828,411 — 804,463 Dilutive common shares 483,192 1,904,460 609,837 1,917,401 Weighted average diluted common shares outstanding (2) 84,048,972 85,413,575 84,036,050 85,221,974 Per share data - Diluted earnings per share from: Continuing operations $ 0.22 $ 0.03 $ 0.47 $ 0.28 Discontinued operations $ — $ — $ — $ 0.02 Total attributable to common shareholders $ 0.22 $ 0.03 $ 0.47 $ 0.30 Dividends per share declared and paid on common stock $ 0.12 $ 0.12 $ 0.24 $ 0.24 _____________________ (1) See Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with the FASB Accounting Standards Codification Distinguishing Liabilities from Equity (“ASC 480”), an increase in redemption value from period to period reduces income attributable to common shareholders. Decreases in redemption value from period to period increase income attributable to common shareholders, but only to the extent that the cumulative change in redemption value remains a cumulative increase since adoption of this standard in the first quarter of 2009. (2) The diluted EPS computations for the three and six months ended June 30, 2019 and 2018 do not assume the conversion, exercise, or contingent issuance of the following shares for the following periods because the result would have been anti-dilutive for the periods indicated. As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Shares excluded due to exercise price exceeding the average market price of common shares during the period (total outstanding): (In thousands) Potential common shares from: Options, restricted stock, or other dilutive securities 750 16 820 136 Total shares excluded due to exercise price exceeding the average market price of common shares during the period 750 16 820 136 |
Reportable Segments
Reportable Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments Management Reporting The Company has three reportable segments: Private Banking, Wealth Management and Trust, and Affiliate Partners, as well as the Parent Company (Boston Private Financial Holdings, Inc.) (the “Holding Company”). The financial performance of the Company is managed and evaluated by these three segments. The segments are managed separately as a result of the concentrations in each function. The Company’s CEO is the Company’s Chief Operating Decision Maker (“CODM”). The Company’s CEO is also the CEO of the Bank which comprises the Private Banking segment. The President of Private Banking, Wealth Management and Trust oversees the Wealth Management and Trust segment and reports to the CEO of the Company. The day-to-day activities of the Company’s affiliates (within the Affiliate Partners segment) are managed by the affiliate CEOs. Executive management has authority with respect to the allocation of capital within their segments, management oversight responsibility, performance assessments, and overall authority and accountability for all of the affiliates within their segment. The Company’s CEO communicates with the affiliate CEOs and the President of Private Banking, Wealth Management and Trust regarding profit and loss responsibility, strategic planning, priority setting and other matters. The Company’s Chief Financial Officer reviews all affiliate financial detail with the CODM on a monthly basis. Description of Reportable Segments Private Banking The Private Banking segment operates primarily in three geographic markets: New England, the San Francisco Bay Area, and Southern California. The Bank currently conducts business under the name of Boston Private Bank & Trust Company in all markets. The Bank is chartered by The Commonwealth of Massachusetts and is insured by the FDIC. The Bank is principally engaged in providing private banking services to high net worth individuals, privately owned businesses and partnerships, and nonprofit organizations. In addition, the Bank is an active provider of financing for affordable housing, first-time homebuyers, economic development, social services, community revitalization and small businesses. Wealth Management and Trust The Wealth Management and Trust segment is comprised of the trust operations of the Bank and the operations of Boston Private Wealth. The segment offers investment management, wealth management, family office, and trust services to individuals, families, and institutions. The Wealth Management and Trust segment operates in New England, Southeast Florida, the San Francisco Bay Area, and Southern California. Affiliate Partners The Affiliate Partners segment is comprised of DGHM and KLS, each of which are RIAs. DGHM serves the needs of pension funds, endowments, trusts, foundations and select institutions, mutual funds and high net worth individuals and their families throughout the United States and abroad. DGHM specializes in value-driven equity portfolios with products across the capitalization spectrum. DGHM is located in New York, with one affiliate administrative office in South Florida. KLS provides comprehensive, planning-based financial strategies to high net worth individuals and their families, and nonprofit institutions. The services the firm offers include fee-only financial planning, tax planning, tax preparation, estate and insurance planning, retirement planning, charitable planning and intergenerational gifting and succession planning. KLS manages investments covering a wide range of asset classes for both taxable and tax-exempt portfolios. KLS is located in New York and Southern California. The Company previously had four reportable segments whereby the Affiliate Partners segment was bifurcated into two segments: Investment Management and Wealth Advisors. At the start of 2018, both the Investment Management and Wealth Advisors segments each had two consolidated affiliates. On April 13, 2018, the Company completed the sale of its ownership interest in Anchor. Anchor was previously in the Investment Management segment. On December 3, 2018, the Company completed the sale of its ownership interest in BOS. BOS was previously in the Wealth Advisory segment. The results of Anchor and BOS for the periods owned are included in the results of the Affiliate Partners segment and the Company. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 3: Asset Sales and Divestitures” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 for additional information. Measurement of Segment Profit and Assets The accounting policies of the segments are the same as those described in Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies.” Reconciliation of Reportable Segment Items The following tables present a reconciliation of the revenues, profits, assets, and other significant items of reportable segments as of and for the three and six months ended June 30, 2019 and 2018 . Interest expense on junior subordinated debentures is reported at the Holding Company. Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Private Banking (In thousands) Net interest income $ 58,419 $ 58,447 $ 117,756 $ 116,578 Fees and other income 2,804 2,825 6,062 5,300 Total revenues 61,223 61,272 123,818 121,878 Provision/ (credit) for loan losses 1,363 453 (63 ) (1,342 ) Operating expense (1) 37,805 39,670 79,122 79,297 Income before income taxes 22,055 21,149 44,759 43,923 Income tax expense 4,878 3,981 9,308 8,594 Net income from continuing operations 17,177 17,168 35,451 35,329 Net income attributable to the Company $ 17,177 $ 17,168 $ 35,451 $ 35,329 Assets $ 8,619,399 $ 8,637,774 $ 8,619,399 $ 8,637,774 Depreciation $ 2,373 $ 2,031 $ 5,043 $ 3,615 Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Wealth Management and Trust (In thousands) Fees and other income $ 10,815 $ 11,293 $ 21,776 $ 23,567 Operating expense (1) 9,438 11,058 19,681 21,752 Income before income taxes 1,377 235 2,095 1,815 Income tax expense 417 34 620 509 Net income from continuing operations 960 201 1,475 1,306 Net income attributable to the Company $ 960 $ 201 $ 1,475 $ 1,306 Assets $ 89,659 $ 73,202 $ 89,659 $ 73,202 Amortization of intangibles $ 672 $ 701 $ 1,344 $ 1,402 Depreciation $ 252 $ 334 $ 539 $ 655 Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Affiliate Partners (2) (In thousands) Net interest income $ 104 $ 79 $ 210 $ 131 Fees and other income 10,596 17,951 21,411 42,898 Total revenues 10,700 18,030 21,621 43,029 Operating expense 7,070 12,347 14,543 31,408 Income before income taxes 3,630 5,683 7,078 11,621 Income tax expense 1,199 1,463 2,299 2,920 Net income from continuing operations 2,431 4,220 4,779 8,701 Noncontrolling interests 69 968 169 2,018 Net income attributable to the Company $ 2,362 $ 3,252 $ 4,610 $ 6,683 Assets $ 71,466 $ 83,364 $ 71,466 $ 83,364 Amortization of intangibles $ — $ 48 $ — $ 97 Depreciation $ 130 $ 196 $ 257 $ 393 Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Holding Company and Eliminations (In thousands) Net interest income $ (1,063 ) $ (981 ) $ (2,168 ) $ (1,781 ) Fees and other income 165 26 379 73 Total revenues (898 ) (955 ) (1,789 ) (1,708 ) Operating expense 1,346 1,309 2,866 2,784 Income/ (loss) before income taxes (2,244 ) (2,264 ) (4,655 ) (4,492 ) Income tax expense/ (benefit) (1,125 ) 11,921 (1,941 ) 11,402 Net income/ (loss) from continuing operations (1,119 ) (14,185 ) (2,714 ) (15,894 ) Discontinued operations (3) — (2 ) — 1,696 Net income/ (loss) attributable to the Company $ (1,119 ) $ (14,187 ) $ (2,714 ) $ (14,198 ) Assets (including eliminations) $ (67,651 ) $ (78,137 ) $ (67,651 ) $ (78,137 ) Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Total Company (2) (In thousands) Net interest income $ 57,460 $ 57,545 $ 115,798 $ 114,928 Fees and other income 24,380 32,095 49,628 71,838 Total revenues 81,840 89,640 165,426 186,766 Provision/ (credit) for loan losses 1,363 453 (63 ) (1,342 ) Operating expense 55,659 64,384 116,212 135,241 Income before income taxes 24,818 24,803 49,277 52,867 Income tax expense 5,369 17,399 10,286 23,425 Net income from continuing operations 19,449 7,404 38,991 29,442 Noncontrolling interests 69 968 169 2,018 Discontinued operations (3) — (2 ) — 1,696 Net income attributable to the Company $ 19,380 $ 6,434 $ 38,822 $ 29,120 Assets $ 8,712,873 $ 8,716,203 $ 8,712,873 $ 8,716,203 Amortization of intangibles $ 672 $ 749 $ 1,344 $ 1,499 Depreciation $ 2,755 $ 2,561 $ 5,839 $ 4,663 _____________________ (1) Operating expense related to the Private Banking and Wealth Management & Trust segments includes restructuring expense for the six months ended June 30, 2019 of $1.3 million and $0.4 million , respectively. (2) The results of Anchor and BOS for the periods owned in 2018 are included in the results of the Affiliate Partners segment and the Company. (3) The Holding Company and Eliminations calculation of net income attributable to the Company includes net income from discontinued operations for the six months ended June 30, 2019 and 2018 of zero and $1.7 million , respectively. The Company received the final payment related to a revenue sharing agreement with Westfield Capital Management Company, LLC (“Westfield”) in the first quarter of 2018. The Company will not receive additional income from Westfield now that the final payment has been received. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Investments | Investments The following table presents a summary of investment securities at June 30, 2019 and December 31, 2018 : Amortized Cost Unrealized Fair Value Gains Losses (In thousands) At June 30, 2019 Available-for-sale securities at fair value: U.S. government and agencies $ 20,047 $ 8 $ (114 ) $ 19,941 Government-sponsored entities 181,442 601 (65 ) 181,978 Municipal bonds 314,235 10,002 (92 ) 324,145 Mortgage-backed securities (1) 444,826 969 (5,128 ) 440,667 Total $ 960,550 $ 11,580 $ (5,399 ) $ 966,731 Held-to-maturity securities at amortized cost: Mortgage-backed securities (1) $ 54,482 $ 24 $ (577 ) $ 53,929 Total $ 54,482 $ 24 $ (577 ) $ 53,929 Equity securities at fair value: Money market mutual funds (2) $ 19,092 $ — $ — $ 19,092 Total $ 19,092 $ — $ — $ 19,092 At December 31, 2018 Available-for-sale securities at fair value: U.S. government and agencies $ 30,043 $ — $ (929 ) $ 29,114 Government-sponsored entities 211,655 — (3,952 ) 207,703 Municipal bonds 309,837 2,223 (3,101 ) 308,959 Mortgage-backed securities (1) 467,239 214 (19,164 ) 448,289 Total $ 1,018,774 $ 2,437 $ (27,146 ) $ 994,065 Held-to-maturity securities at amortized cost: U.S. government and agencies $ 9,898 $ 2 $ — $ 9,900 Mortgage-backed securities (1) 60,540 — (1,845 ) 58,695 Total $ 70,438 $ 2 $ (1,845 ) $ 68,595 Equity securities at fair value: Money market mutual funds (2) $ 14,228 $ — $ — $ 14,228 Total $ 14,228 $ — $ — $ 14,228 _____________________ (1) All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities. (2) Money market mutual funds maintain a constant net asset value of $1.00 and therefore have no unrealized gain or loss. The following table presents the maturities of available-for-sale investment securities, based on contractual maturity, as of June 30, 2019 . Certain securities are callable before their final maturity. Additionally, certain securities (such as mortgage-backed securities) are shown within the table below based on their final (contractual) maturity, but due to prepayments and amortization are expected to have shorter lives. Available-for-sale Securities Amortized Cost Fair Value (In thousands) Within one year $ 43,131 $ 43,118 After one, but within five years 266,198 266,819 After five, but within ten years 284,020 285,133 Greater than ten years 367,201 371,661 Total $ 960,550 $ 966,731 The following table presents the maturities of held-to-maturity investment securities, based on contractual maturity, as of June 30, 2019 . Held-to-maturity Securities Amortized Cost Fair Value (In thousands) After five, but within ten years $ 44,565 $ 44,132 Greater than ten years 9,917 9,797 Total $ 54,482 $ 53,929 The following table presents the proceeds from sales, gross realized gains and gross realized losses for available-for-sale securities that were sold or called during the following periods as well as changes in the fair value of equity securities as prescribed by ASC 321, Investment - Equity Securities . ASU 2016-01, Recognition and Measurements of Financial Assets and Financial Liabilities was adopted on January 1, 2018, at which time a cumulative effect adjustment of $339 thousand was recorded to reclassify the amount of accumulated unrealized gains related to equity securities from accumulated other comprehensive income to retained earnings. Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (In thousands) Proceeds from sales $ — $ 19,673 $ — $ 35,550 Realized gains — — — 7 Realized losses — — — (1 ) Change in unrealized gain/ (loss) on equity securities reflected in the consolidated statement of operations — 7 — (23 ) The following tables present information regarding securities at June 30, 2019 and December 31, 2018 having temporary impairment, due to the fair values having declined below the amortized cost of the individual securities, and the time period that the investments have been temporarily impaired. Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses # of Securities (In thousands, except number of securities) June 30, 2019 Available-for-sale securities U.S. government and agencies $ — $ — $ 9,934 $ (114 ) $ 9,934 $ (114 ) 2 Government-sponsored entities — — 70,069 (65 ) 70,069 (65 ) 13 Municipal bonds 7,794 (12 ) 14,930 (80 ) 22,724 (92 ) 16 Mortgage-backed securities (1) (3) 54 — 353,127 (5,128 ) 353,181 (5,128 ) 89 Total $ 7,848 $ (12 ) $ 448,060 $ (5,387 ) $ 455,908 $ (5,399 ) 120 Held-to-maturity securities Mortgage-backed securities (1) $ — $ — $ 45,951 $ (577 ) $ 45,951 $ (577 ) 14 Total $ — $ — $ 45,951 $ (577 ) $ 45,951 $ (577 ) 14 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized # of (In thousands, except number of securities) December 31, 2018 Available-for-sale securities U.S. government and agencies $ — $ — $ 29,114 $ (929 ) $ 29,114 $ (929 ) 5 Government-sponsored entities — — 207,703 (3,952 ) 207,703 (3,952 ) 32 Municipal bonds 25,394 (128 ) 130,209 (2,973 ) 155,603 (3,101 ) 85 Mortgage-backed securities (1) 2,469 (11 ) 433,888 (19,153 ) 436,357 (19,164 ) 110 Total $ 27,863 $ (139 ) $ 800,914 $ (27,007 ) $ 828,777 $ (27,146 ) 232 Held-to-maturity securities Mortgage-backed securities (1) $ — $ — $ 58,695 $ (1,845 ) $ 58,695 $ (1,845 ) 16 Total $ — $ — $ 58,695 $ (1,845 ) $ 58,695 $ (1,845 ) 16 _____________________ (1) All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities. (3) The amount of unrealized losses less than 12 months rounds to zero. As of June 30, 2019 , the U.S. government and agencies securities, government-sponsored entities securities and mortgage-backed securities in the first table above had current Standard and Poor’s credit ratings of AA. The municipal bonds in the first table above had a current Standard and Poor’s credit rating of at least AA-. As of June 30, 2019 , the Company does not consider these investments other-than-temporarily impaired as the decline in fair value on investments is primarily attributed to changes in interest rates and not as a result of the deterioration of credit quality. As of June 30, 2019 , the Company had no intent to sell any securities in an unrealized loss position and it is not more likely than not that the Company would be forced to sell any of these securities prior to the full recovery of all unrealized loss amounts. Cost method investments The Company invests in low-income housing tax credits, which are included in other assets, to encourage private capital investment in the construction and rehabilitation of low-income housing. The Company makes these investments as an indirect subsidy that allows investors, such as the Company, in a flow-through limited liability entity, such as limited partnerships or limited liability companies that manage or invest in qualified affordable housing projects, to receive the benefits of the tax credits allocated to the entity that owns the qualified affordable housing project. The Company also holds partnership interests in venture capital funds formed to provide financing to small businesses and to promote community development. Cost method investments, which are included in other assets, can be temporarily impaired when the fair values decline below the amortized costs of the individual investments. There were no cost method investments with unrealized losses as of June 30, 2019 or December 31, 2018 . The Company’s cost method investments primarily include low income housing partnerships which generate tax credits. The Company also holds partnership interests in venture capital funds formed to provide financing to small businesses and to promote community development. The Company had $56.6 million and $54.4 million in cost method investments included in other assets as of June 30, 2019 and December 31, 2018 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined under GAAP as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. The Company determines the fair values of its financial instruments based on the fair value hierarchy established in ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value. Financial instruments are considered Level 1 when valuation can be based on quoted prices in active markets for identical assets or liabilities. Level 2 financial instruments are valued using quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or models using inputs that are observable or can be corroborated by observable market data of substantially the full term of the assets or liabilities. Financial instruments are considered Level 3 when their values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable and when determination of the fair value requires significant management judgment or estimation. The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall: As of June 30, 2019 Fair value measurements at reporting date using: Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In thousands) Assets: Available-for-sale securities: U.S. government and agencies $ 19,941 $ — $ 19,941 $ — Government-sponsored entities 181,978 — 181,978 — Municipal bonds 324,145 — 324,145 — Mortgage-backed securities 440,667 — 440,667 — Total available-for-sale securities 966,731 — 966,731 — Equity securities 19,092 19,092 — — Derivatives - interest rate customer swaps 33,835 — 33,835 — Derivatives - interest rate swaps 5 — 5 — Derivatives - risk participation agreement 12 — 12 — Trading securities held in the “rabbi trust” (1) 6,335 6,335 — — Liabilities: Derivatives - interest rate customer swaps $ 34,586 $ — $ 34,586 $ — Derivatives - risk participation agreement 272 — 272 — Deferred compensation “rabbi trust” (1) 6,335 6,335 — — Fair value measurements at reporting date using: As of December 31, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In thousands) Assets: Available-for-sale securities: U.S. government and agencies $ 29,114 $ — $ 29,114 $ — Government-sponsored entities 207,703 — 207,703 — Municipal bonds 308,959 — 308,959 — Mortgage-backed securities 448,289 — 448,289 — Total available-for-sale securities 994,065 — 994,065 — Equity securities 14,228 14,228 — — Derivatives - interest rate customer swaps 21,889 — 21,889 — Derivatives - interest rate swaps 553 — 553 — Derivatives - risk participation agreements 2 — 2 — Trading securities held in the “rabbi trust” (1) 6,839 6,839 — — Liabilities: Derivatives - interest rate customer swaps $ 22,385 $ — $ 22,385 $ — Derivatives - risk participation agreements 152 — 152 — Deferred compensation “rabbi trust” (1) 6,839 6,839 — — _____________________ (1) The Company has adopted a special trust for the Deferred Compensation Plan called a “rabbi trust”. The rabbi trust is an arrangement that is used to accumulate assets that may be used to fund the Company’s obligation to pay benefits under the Deferred Compensation Plan. To prevent immediate taxation to the executives who participate in the Deferred Compensation Plan, the amounts placed in the rabbi trust must remain subject to the claims of the Company’s creditors. The investments chosen by the participants in the Deferred Compensation Plan are mirrored by the rabbi trust as a way to minimize the earnings volatility of the Deferred Compensation Plan. As of June 30, 2019 and December 31, 2018 , available-for-sale securities consisted of U.S. government and agencies securities, government-sponsored entities securities, municipal bonds, and mortgage-backed securities. Available-for-sale Level 2 securities generally have quoted prices but are traded less frequently than exchange-traded securities and can be priced using market data from similar assets and include government-sponsored entities securities, municipal bonds, mortgage-backed securities, “off-the-run” U.S. Treasury securities, and certain investments in SBA loans (which are categorized as U.S. government and agencies securities). “Off-the-run” U.S. Treasury securities are Treasury bonds and notes issued before the most recently issued bond or note of a particular maturity. When Treasuries move to the secondary over-the-counter market, they become less frequently traded, therefore, they are considered “off-the-run”. No investments held as of June 30, 2019 or December 31, 2018 were categorized as Level 3. As of June 30, 2019 and December 31, 2018, equity securities consisted of Level 1 money market mutual funds that are valued with prices quoted in active markets. In managing its interest rate and credit risk, the Company utilizes derivative instruments including interest rate customer swaps, interest rate swaps, and risk participation agreements. As a service to its customers, the Company may utilize derivative instruments including customer foreign exchange forward contracts to manage its foreign exchange risk, if any. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities, and therefore, they have been categorized as a Level 2 measurement as of June 30, 2019 and December 31, 2018 . See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 8: Derivatives and Hedging Activities” for further details. To comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Counterparty exposure is evaluated by netting positions that are subject to master netting agreements, as well as considering the amount of collateral securing the position. The Company has determined that the majority of inputs used to value its derivatives are within Level 2. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy as of June 30, 2019 and December 31, 2018 . Trading securities held in the rabbi trust consist of publicly traded mutual fund investments that are valued at prices quoted in active markets. Therefore, they have been categorized as Level 1 as of June 30, 2019 and December 31, 2018 . The Company accounts for its investments held in the rabbi trust in accordance with ASC 320, Investments - Debt and Equity Securities. The investments held in the rabbi trust are classified as trading securities. The assets of the rabbi trust are carried at their fair value within other assets on the consolidated balance sheet. Changes in the fair value of the securities are recorded as an increase or decrease in other income each quarter. The deferred compensation liability reflects the market value of the securities selected by the participants and is included within other liabilities on the consolidated balance sheet. Changes in the fair value of the liability are recorded as an increase or decrease in salaries and employee benefits expense each quarter. There were no transfers for assets or liabilities recorded at fair value on a recurring basis as of June 30, 2019 . During the year ended December 31, 2018 , five U.S. Treasury securities totaling $33.4 million transferred from Level 1 to Level 2 as the securities were determined to be “off-the-run”. There were no other transfers for assets or liabilities recorded at fair value on a recurring basis for the year ended December 31, 2018 . There were no Level 3 assets valued on a recurring basis at June 30, 2019 or December 31, 2018 . There were no changes in the valuation techniques used for measuring the fair value. The following tables present the Company’s assets and liabilities measured at fair value on a non-recurring basis during the periods ended June 30, 2019 and 2018, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall. As of June 30, 2019 Fair value measurements at reporting date using: Gain (losses) from fair value changes Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Three months ended June 30, 2019 Six months ended June 30, 2019 (In thousands) Assets: Impaired loans (1) $ 1,144 $ — $ — $ 1,144 $ 220 $ 592 _____________________ (1) Collateral-dependent impaired loans held as of June 30, 2019 that had write-downs in fair value or whose specific reserve changed during the six months ended June 30, 2019 . As of June 30, 2018 Fair value measurements at reporting date using: Gain (losses) from fair value changes Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Three months ended June 30, 2018 Six months ended June 30, 2018 (In thousands) Assets: Impaired loans (1) $ 3,051 $ — $ — $ 3,051 $ (711 ) $ (927 ) _____________________ (1) Collateral-dependent impaired loans held as of June 30, 2018 that had write-downs in fair value or whose specific reserve changed during the six months ended June 30, 2018 . The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value: As of June 30, 2019 Fair Value Valuation Technique Unobservable Input Range of Inputs Utilized Weighted Average of Inputs Utilized (In thousands) Impaired Loans $ 1,144 Appraisals of Collateral Discount for costs to sell 0% - 5% 4% Appraisal adjustments —% —% As of June 30, 2018 Fair Value Valuation Technique Unobservable Input Range of Inputs Utilized Weighted Average of Inputs Utilized (In thousands) Impaired Loans $ 3,051 Appraisals of Collateral Discount for costs to sell 0% - 24% 9% Appraisal adjustments 0% - 20% 7% Impaired loans include those loans that were adjusted to the fair value of underlying collateral as required under ASC 310, Receivables . The amount does not include impaired loans that are measured based on expected future cash flows discounted at the respective loan’s original effective interest rate, as that amount is not considered a fair value measurement. The Company uses appraisals, which management may adjust to reflect estimated fair value declines, or may apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property or consideration of broker quotes. The appraisers use a market, income, and/or a cost approach in determining the value of the collateral. Therefore they have been categorized as a Level 3 measurement. The following tables present the carrying values and fair values of the Company’s financial instruments that are not measured at fair value on a recurring basis: As of June 30, 2019 Book Value Fair Value Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In thousands) FINANCIAL ASSETS: Cash and cash equivalents $ 65,756 $ 65,756 $ 65,756 $ — $ — Investment securities held-to-maturity 54,482 53,929 — 53,929 — Loans held for sale 3,640 3,713 — 3,713 — Loans, net 7,005,193 6,988,207 — — 6,988,207 Other financial assets 94,475 94,475 — 94,475 — FINANCIAL LIABILITIES: Deposits 6,437,963 6,437,827 — 6,437,827 — Securities sold under agreements to repurchase 62,372 62,372 — 62,372 — Federal funds purchased 135,000 135,000 — 135,000 — Federal Home Loan Bank borrowings 920,068 920,615 — 920,615 — Junior subordinated debentures 106,363 96,363 — — 96,363 Other financial liabilities 4,386 4,386 — 4,386 — As of December 31, 2018 Book Value Fair Value Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In thousands) FINANCIAL ASSETS: Cash and cash equivalents $ 127,259 $ 127,259 $ 127,259 $ — $ — Investment securities held-to-maturity 70,438 68,595 — 68,595 — Loans held for sale 2,812 2,837 — 2,837 — Loans, net 6,817,846 6,734,216 — — 6,734,216 Other financial assets 78,730 78,730 — 78,730 — FINANCIAL LIABILITIES: Deposits 6,781,170 6,777,928 — 6,777,928 — Securities sold under agreements to repurchase 36,928 36,928 — 36,928 — Federal funds purchased 250,000 250,000 — 250,000 — Federal Home Loan Bank borrowings 420,144 417,092 — 417,092 — Junior subordinated debentures 106,363 96,363 — — 96,363 Other financial liabilities 2,001 2,001 — 2,001 — The estimated fair values have been determined by using available quoted market information or other appropriate valuation methodologies. The aggregate fair value amounts presented above do not represent the underlying value of the financial assets and liabilities of the Company taken as a whole as they do not reflect any premium or discount the Company might recognize if the assets were sold or the liabilities sold, settled, or redeemed. An excess of fair value over book value on financial assets represents a premium, or gain, the Company might recognize if the assets were sold, while an excess of book value over fair value on financial liabilities represents a premium, or gain, the Company might recognize if the liabilities were sold, settled, or redeemed prior to maturity. Conversely, losses would be recognized if assets were sold where the book value exceeded the fair value or liabilities were sold where the fair value exceeded the book value. The fair value estimates provided are made at a specific point in time, based on relevant market information and the characteristics of the financial instrument. The estimates do not provide for any premiums or discounts that could result from concentrations of ownership of a financial instrument. Because no active market exists for some of the Company’s financial instruments, certain fair value estimates are based on subjective judgments regarding current economic conditions, risk characteristics of the financial instruments, future expected loss experience, prepayment assumptions, and other factors. The resulting estimates involve uncertainties and are considered best estimates. Changes made to any of the underlying assumptions could significantly affect the estimates. Cash and cash equivalents The carrying value reported in the balance sheet for cash and cash equivalents approximates fair value due to the short-term nature of their maturities and these assets are classified as Level 1 measurements. Investment securities held-to-maturity Investment securities held-to-maturity currently consist of mortgage-backed securities. As of December 31, 2018, investment securities held-to-maturity consisted of mortgage-backed securities and a U.S. Treasury security. The U.S. Treasury security held as of December 31, 2018 is an “off-the-run” U.S. Treasury security and, therefore, it has been categorized as Level 2. The mortgage-backed securities are fixed income instruments that are not quoted on an exchange, but may be traded in active markets. The fair value of these securities is based on quoted market prices obtained from external pricing services. The principal market for our securities portfolio is the secondary institutional market, with an exit price that is predominantly reflective of bid level pricing in that market. Accordingly, held-to-maturity mortgage-backed securities are classified as Level 2. There were no transfers of the Company's financial instruments that are not measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018 . Loans held for sale Loans held for sale are recorded at the lower of cost or fair value in the aggregate. Fair value estimates are based on actual commitments to sell the loans to investors at an agreed upon price or current market prices if rates have changed since the time the loan closed. Accordingly, loans held for sale are included in the Level 2 fair value category. Loans, net Fair value estimates are based on loans with similar financial characteristics. Following the adoption of ASU 2016-01 in 2018, the Company updated its process for estimating the fair value of loans, net of allowance for loan losses. The updated process estimates the fair value of loans using the exit price notion, which includes identifying an exit price using current market information for origination rates and making certain adjustments to incorporate credit risk, transaction costs and other adjustments utilizing publicly available rates and indexes. Loans, net are included in the Level 3 fair value category based upon the inputs and valuation techniques used. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 15: Recent Accounting Pronouncements” for additional information on ASU 2016-01. Other financial assets Other financial assets consist of accrued interest and fees receivable, and stock in the Federal Home Loan Bank of Boston (“FHLB”) and the Federal Reserve Bank (“FRB”), for which the carrying amount approximates fair value, and these assets are classified as Level 2 measurements. Deposits The fair values reported for transaction accounts (demand, NOW, savings, and money market) equal their respective book values reported on the balance sheet and these liabilities are classified as Level 2 measurements. The fair values disclosed are, by definition, equal to the amount payable on demand at the reporting date. The fair values for certificates of deposit are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on certificates of deposit with similar remaining maturities and these liabilities are classified as Level 2 measurements. Securities sold under agreements to repurchase The fair values of securities sold under agreements to repurchase are estimated based on contractual cash flows discounted at the Bank’s incremental borrowing rate for FHLB borrowings with similar maturities and these liabilities have been classified as Level 2 measurements. Federal funds purchased The carrying amounts of federal funds purchased, if any, approximate fair value due to their short-term nature and therefore these funds have been classified as Level 2 measurements. Federal Home Loan Bank borrowings The fair values reported for FHLB borrowings are estimated based on the discounted value of contractual cash flows. The discount rate used is based on the Bank’s estimated current incremental borrowing rate for FHLB borrowings of similar maturities and therefore these borrowings have been classified as Level 2 measurements. Junior subordinated debentures The fair values of the junior subordinated debentures issued by Boston Private Capital Trust I and Boston Private Capital Trust II are estimated using Level 3 inputs such as the interest rates on these securities, current rates for similar debt, a consideration for illiquidity of trading in the debt, and regulatory changes that would result in an unfavorable change in the regulatory capital treatment of this type of debt. Other financial liabilities Other financial liabilities consists of accrued interest payable for which the carrying amount approximates fair value and is classified as Level 2 measurements. Financial instruments with off-balance sheet risk The Bank’s commitments to originate loans and for unused lines and outstanding letters of credit are primarily at market interest rates and therefore, the carrying amount approximates fair value. |
Loan Portfolio and Credit Quali
Loan Portfolio and Credit Quality | 6 Months Ended |
Jun. 30, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loan Portfolio and Credit Quality | Loan Portfolio and Credit Quality The Bank’s lending activities are conducted principally in the regions of New England, the San Francisco Bay Area, and Southern California. The Bank originates single and multi-family residential loans, commercial real estate loans, commercial and industrial loans, commercial tax-exempt loans, construction and land loans, and home equity and other consumer loans. Most loans are secured by borrowers’ personal or business assets. The ability of the Bank’s single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic conditions within the Bank’s lending areas. Commercial, construction, and land borrowers’ ability to repay is generally dependent upon the health of the economy and real estate values, including, in particular, the performance of the construction sector. Accordingly, the ultimate collectability of a substantial portion of the Bank’s loan portfolio is susceptible to changing conditions in the New England, San Francisco Bay Area, and Southern California economies and real estate markets. The following table presents a summary of the loan portfolio based on the portfolio segment as of the dates indicated: June 30, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 656,186 $ 623,037 Commercial tax-exempt 450,307 451,671 Total commercial and industrial 1,106,493 1,074,708 Commercial real estate 2,530,556 2,395,692 Construction and land 200,378 240,306 Residential 3,025,758 2,948,973 Home equity 89,930 90,421 Consumer and other 127,145 143,058 Total $ 7,080,260 $ 6,893,158 The following table presents nonaccrual loans receivable by class of receivable as of the dates indicated: June 30, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 1,567 $ 2,554 Commercial tax-exempt — — Total commercial and industrial 1,567 2,554 Commercial real estate — 546 Residential 12,572 7,914 Home equity 3,004 3,031 Consumer and other 12 12 Total $ 17,155 $ 14,057 The Bank’s policy is to discontinue the accrual of interest on a loan when the collectability of principal or interest is in doubt. In certain instances, although infrequent, loans that have become 90 days or more past due may remain on accrual status if the value of the collateral securing the loan is sufficient to cover principal and interest and the loan is in the process of collection. There was one residential loan 90 days or more past due, but still accruing, as of June 30, 2019 and no loans 90 days or more past due, but still accruing, as of December 31, 2018 . The residential loan 90 days or more past due as of June 30, 2019 was paid off in July 2019. The Bank’s policy for returning a loan to accrual status requires the loan to be brought current and for the client to show a history of making timely payments (generally six consecutive months). For troubled debt restructured loans (“TDRs”), a return to accrual status generally requires timely payments for a period of six months in accordance with the restructured loan terms, along with meeting other criteria. The following tables show the payment status of loans receivable by class of receivable as of the dates indicated: June 30, 2019 Accruing Past Due Nonaccrual Loans 30-59 Days Past Due 60-89 Days Past Due Total Accruing Past Due Current 30-89 Days Past Due 90 Days or Greater Past Due Total Non-Accrual Loans Current Accruing Loans Total Loans Receivable (In thousands) Commercial and industrial $ 251 $ — $ 251 $ 1,194 $ 155 $ 218 $ 1,567 $ 654,368 $ 656,186 Commercial tax-exempt — — — — — — — 450,307 450,307 Commercial real estate 982 — 982 — — — — 2,529,574 2,530,556 Construction and land — — — — — — — 200,378 200,378 Residential (1) — 334 1,266 4,238 2,961 5,373 12,572 3,011,920 3,025,758 Home equity — — — 385 274 2,345 3,004 86,926 89,930 Consumer and other 867 — 867 7 — 5 12 126,266 127,145 Total $ 2,100 $ 334 $ 3,366 $ 5,824 $ 3,390 $ 7,941 $ 17,155 $ 7,059,739 $ 7,080,260 ___________________ (1) There was one residential loan that was 90+ days past due and accruing for $0.9 million . For this reason, the total accruing past due amount will not equal the sum of 30-59 days past due and 60-89 days past due. This loan was paid off in July 2019. December 31, 2018 Accruing Past Due Nonaccrual Loans 30-59 Days Past Due 60-89 Days Past Due Total Accruing Past Due Current 30-89 Days Past Due 90 Days or Greater Past Due Total Non-Accrual Loans Current Accruing Loans Total Loans Receivable (In thousands) Commercial and industrial $ 9,794 $ — $ 9,794 $ 979 $ — $ 1,575 $ 2,554 $ 610,689 $ 623,037 Commercial tax-exempt — — — — — — — 451,671 451,671 Commercial real estate — — — — — 546 546 2,395,146 2,395,692 Construction and land — — — — — — — 240,306 240,306 Residential 6,477 366 6,843 2,639 716 4,559 7,914 2,934,216 2,948,973 Home equity 252 350 602 — 48 2,983 3,031 86,788 90,421 Consumer and other 17 5,043 5,060 8 4 — 12 137,986 143,058 Total $ 16,540 $ 5,759 $ 22,299 $ 3,626 $ 768 $ 9,663 $ 14,057 $ 6,856,802 $ 6,893,158 Nonaccrual and delinquent loans are affected by many factors, such as economic and business conditions, interest rates, unemployment levels, and real estate collateral values, among others. In periods of prolonged economic decline, borrowers may become more severely affected over time as liquidity levels decline and the borrower’s ability to continue to make payments deteriorates. With respect to real estate collateral values, the declines from the peak, as well as the value of the real estate at the time of origination versus the current value, can impact the level of problem loans. For instance, if the loan to value ratio at the time of renewal has increased due to the decline in the real estate value since origination, the loan may no longer meet the Bank’s underwriting standards and may be considered for classification as a problem loan dependent upon a review of risk factors. Generally when a collateral dependent loan becomes impaired, an updated appraisal of the collateral, if appropriate, is obtained. If the impaired loan has not been upgraded to a performing status within a reasonable amount of time, the Bank will continue to obtain updated appraisals as deemed necessary, especially during periods of declining property values. The past due status of a loan is determined in accordance with its contractual repayment terms. All loan types are reported past due when one scheduled payment is due and unpaid for 30 days or more. Credit Quality Indicators The Bank uses a risk rating system to monitor the credit quality of its loan portfolio. Loan classifications are assessments made by the Bank of the status of the loans based on the facts and circumstances known to the Bank, including management’s judgment, at the time of assessment. Some or all of these classifications may change in the future if there are unexpected changes in the financial condition of the borrower, including but not limited to, changes resulting from continuing deterioration in general economic conditions on a national basis or in the local markets in which the Bank operates adversely affecting, among other things, real estate values. Such conditions, as well as other factors which adversely affect borrowers’ ability to service or repay loans, typically result in changes in loan default and charge-off rates, and increased provisions for loan losses, which would adversely affect the Company’s financial performance and financial condition. These circumstances are not entirely foreseeable and, as a result, it may not be possible to accurately reflect them in the Company’s analysis of credit risk. Generally, only commercial loans, including commercial real estate, other commercial and industrial loans, commercial tax-exempt loans, and construction and land loans, are given a numerical grade. A summary of the rating system used by the Bank is included here from Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , follows: Pass - All loans graded as pass are considered acceptable credit quality by the Bank and are grouped for purposes of calculating the allowance for loan losses. For residential, home equity and consumer loans, the Bank classifies loans as pass unless there is known information such as delinquency or client requests for modifications which, due to financial difficulty, would then generally result in a risk rating such as special mention or more severe depending on the factors. Special Mention - Loans rated in this category are defined as having potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the credit or the Bank’s credit position. These loans are currently protected but have the potential to deteriorate to a substandard rating. For commercial loans, the borrower’s financial performance may be inconsistent or below forecast, creating the possibility of liquidity problems and shrinking debt service coverage. In loans having this rating, the primary source of repayment is still good, but there is increasing reliance on collateral or guarantor support. Collectability of the loan is not yet in jeopardy. In particular, loans in this category are considered more variable than other categories, since they will typically migrate through categories more quickly. Substandard - Loans rated in this category are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. A substandard credit has a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Substandard loans may be either still accruing or nonaccruing depending upon the severity of the risk and other factors such as the value of the collateral, if any, and past due status. Doubtful - Loans rated in this category indicate that collection or liquidation in full on the basis of currently existing facts, conditions, and values, is highly questionable and improbable. Loans in this category are usually on nonaccrual and classified as impaired. The following tables present the loan portfolio’s credit risk profile by internally assigned grade and class of receivable as of the dates indicated: June 30, 2019 By Loan Grade or Nonaccrual Status Pass Special Mention Accruing Classified (1) Nonaccrual Loans Total (In thousands) Commercial and industrial $ 617,524 $ 14,058 $ 23,037 $ 1,567 $ 656,186 Commercial tax-exempt 443,577 2,679 4,051 — 450,307 Commercial real estate 2,452,821 53,940 23,795 — 2,530,556 Construction and land 200,378 — — — 200,378 Residential 3,010,186 — 3,000 12,572 3,025,758 Home equity 86,926 — — 3,004 89,930 Consumer and other 127,133 — — 12 127,145 Total $ 6,938,545 $ 70,677 $ 53,883 $ 17,155 $ 7,080,260 December 31, 2018 By Loan Grade or Nonaccrual Status Pass Special Accruing Nonaccrual Total (In thousands) Commercial and industrial $ 581,278 $ 16,213 $ 22,992 $ 2,554 $ 623,037 Commercial tax-exempt 444,835 2,785 4,051 — 451,671 Commercial real estate 2,314,223 53,871 27,052 546 2,395,692 Construction and land 234,647 5,659 — — 240,306 Residential 2,941,059 — — 7,914 2,948,973 Home equity 87,390 — — 3,031 90,421 Consumer and other 143,046 — — 12 143,058 Total $ 6,746,478 $ 78,528 $ 54,095 $ 14,057 $ 6,893,158 ______________________ (1) Accruing Classified includes both Substandard and Doubtful classifications. The following tables present, by class of receivable, the balance of impaired loans with and without a related allowance, the associated allowance for those impaired loans with a related allowance, and the total unpaid principal on impaired loans: As of and for the three and six months ended June 30, 2019 Recorded Investment (1) Unpaid Principal Balance Related Allowance QTD Average Recorded Investment YTD Average Recorded Investment QTD Interest Income Recognized while Impaired YTD Interest Income Recognized while Impaired (In thousands) With no related allowance recorded: Commercial and industrial $ 1,669 $ 2,616 n/a $ 1,520 $ 1,328 $ 10 $ 25 Commercial tax-exempt — — n/a — — — — Commercial real estate — — n/a — 78 — 256 Construction and land — — n/a — — — — Residential 15,127 15,387 n/a 14,079 12,605 103 240 Home equity 2,497 3,059 n/a 2,359 2,018 1 1 Consumer and other — — n/a — — — — Subtotal $ 19,293 $ 21,062 n/a 17,958 $ 16,029 114 $ 522 With an allowance recorded: Commercial and industrial $ 441 $ 441 $ 93 596 $ 1,036 4 $ 20 Commercial tax-exempt — — — — — — — Commercial real estate — — — — — — — Construction and land — — — — — — — Residential 778 778 74 733 752 6 13 Home equity 274 274 24 69 776 1 1 Consumer and other — — — — — — — Subtotal $ 1,493 $ 1,493 $ 191 $ 1,398 $ 2,564 $ 11 $ 34 Total: Commercial and industrial $ 2,110 $ 3,057 $ 93 $ 2,116 $ 2,364 $ 14 $ 45 Commercial tax-exempt — — — — — — — Commercial real estate — — — — 78 — 256 Construction and land — — — — — — — Residential 15,905 16,165 74 14,812 13,357 109 253 Home equity 2,771 3,333 24 2,428 2,794 2 2 Consumer and other — — — — — — — Total $ 20,786 $ 22,555 $ 191 $ 19,356 $ 18,593 $ 125 $ 556 _____________________ (1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal. As of and for the three and six months ended June 30, 2018 Recorded Investment (1) Unpaid Principal Balance Related Allowance QTD Average Recorded Investment YTD Average Recorded Investment QTD Interest Income Recognized while Impaired YTD Interest Income Recognized while Impaired (In thousands) With no related allowance recorded: Commercial and industrial $ 2,015 $ 2,954 n/a $ 2,048 $ 1,835 $ 14 $ 22 Commercial tax-exempt — — n/a — — — — Commercial real estate 2,932 4,695 n/a 2,939 2,460 25 50 Construction and land — — n/a 82 94 16 16 Residential 10,455 10,815 n/a 10,587 10,009 87 189 Home equity — — n/a 1,311 1,509 15 24 Consumer and other — — n/a — — — — Subtotal $ 15,402 $ 18,464 n/a $ 16,967 $ 15,907 $ 157 $ 301 With an allowance recorded: Commercial and industrial $ 303 $ 403 $ 134 $ 76 $ 147 $ — $ 2 Commercial tax-exempt — — — — — — — Commercial real estate 5,426 5,855 187 5,467 6,055 72 228 Construction and land — — — — — — — Residential 816 816 82 818 821 6 12 Home equity 1,769 1,769 597 469 284 — — Consumer and other — — — — 18 — 3 Subtotal $ 8,314 $ 8,843 $ 1,000 $ 6,830 $ 7,325 $ 78 $ 245 Total: Commercial and industrial $ 2,318 $ 3,357 $ 134 $ 2,124 $ 1,982 $ 14 $ 24 Commercial tax-exempt — — — — — — — Commercial real estate 8,358 10,550 187 8,406 8,515 97 278 Construction and land — — — 82 94 16 16 Residential 11,271 11,631 82 11,405 10,830 93 201 Home equity 1,769 1,769 597 1,780 1,793 15 24 Consumer and other — — — — 18 — 3 Total $ 23,716 $ 27,307 $ 1,000 $ 23,797 $ 23,232 $ 235 $ 546 _____________________ (1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal. As of and for the year ended December 31, 2018 Recorded Investment (1) Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized while Impaired (In thousands) With no related allowance recorded: Commercial and industrial $ 1,435 $ 2,397 n/a $ 1,614 $ 69 Commercial tax-exempt — — n/a — — Commercial real estate 546 900 n/a 2,002 1,544 Construction and land — — n/a 50 16 Residential 8,403 8,764 n/a 9,638 408 Home equity 990 990 n/a 1,041 24 Consumer and other — — n/a — — Subtotal $ 11,374 $ 13,051 n/a $ 14,345 $ 2,061 With an allowance recorded: Commercial and industrial $ 1,770 $ 1,972 $ 598 $ 631 $ 15 Commercial tax-exempt — — — — — Commercial real estate — — — 4,087 705 Construction and land — — — — — Residential 780 780 75 785 22 Home equity 1,719 1,719 562 959 11 Consumer and other — — — 10 3 Subtotal $ 4,269 $ 4,471 $ 1,235 $ 6,472 $ 756 Total: Commercial and industrial $ 3,205 $ 4,369 $ 598 $ 2,245 $ 84 Commercial tax-exempt — — — — — Commercial real estate 546 900 — 6,089 2,249 Construction and land — — — 50 16 Residential 9,183 9,544 75 10,423 430 Home equity 2,709 2,709 562 2,000 35 Consumer and other — — — 10 3 Total $ 15,643 $ 17,522 $ 1,235 $ 20,817 $ 2,817 _____________________ (1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal. When management determines that it is probable that the Bank will not collect all principal and interest on a loan in accordance with the original loan terms, the loan is designated as impaired. Loans that are designated as impaired require an analysis to determine the amount of impairment, if any. Impairment would be indicated as a result of the carrying value of the loan exceeding either the estimated collateral value, less costs to sell, for collateral dependent loans or the net present value of the projected cash flow, discounted at the loan’s contractual effective interest rate, for loans not considered to be collateral dependent. Generally, shortfalls in the analysis on collateral dependent loans would result in the impairment amount being charged-off to the allowance for loan losses. Shortfalls on cash flow dependent loans may be carried as specific allocations to the general reserve unless a known loss is determined to have occurred, in which case, such known loss is charged-off. Loans in the held for sale category are carried at the lower of amortized cost or estimated fair value in the aggregate and are excluded from the allowance for loan losses analysis. As of June 30, 2019 , the Bank has pledged $2.6 billion of loans in a blanket lien agreement with the FHLB. The Bank also has $459.6 million of loans pledged as collateral at the FRB for access to their discount window. As of December 31, 2018 , the Bank had pledged $2.6 billion of loans to the FHLB and $540.0 million of loans at the FRB. The Bank may, under certain circumstances, restructure loans as a concession to borrowers who are experiencing financial difficulty. Such loans are classified as TDRs and are included in impaired loans. TDRs typically result from the Bank’s loss mitigation activities which, among other things, could include rate reductions, payment extensions, and/or principal forgiveness. As of June 30, 2019 and December 31, 2018 , TDRs totaled $10.6 million and $8.0 million , respectively. As of June 30, 2019 , $6.9 million of the $10.6 million in TDRs were on accrual status. As of December 31, 2018 , $3.8 million of the $8.0 million in TDRs were on accrual status. Since all TDR loans are considered impaired loans, they are individually evaluated for impairment. The resulting impairment, if any, would have an impact on the allowance for loan losses as a specific reserve or charge-off. If, prior to the classification as a TDR, the loan was not impaired, there would have been a general or allocated reserve on the particular loan. Therefore, depending upon the result of the impairment analysis, there could be an increase or decrease in the related allowance for loan losses. Many loans initially categorized as TDRs are already on nonaccrual status and are already considered impaired. Therefore, there is generally not a material change to the allowance for loan losses when a nonaccruing loan is categorized as a TDR. The following tables present the balance of TDRs that were restructured or defaulted during the periods indicated: As of and for the three months ended June 30, 2019 Restructured Current Quarter TDRs that defaulted in the Current Quarter that were restructured in prior twelve months # of Loans Pre- modification recorded investment Post- modification recorded investment # of Loans Post- modification recorded investment (In thousands, except number of loans) Commercial and industrial — $ — $ — — $ — Commercial tax exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential (1) 1 222 222 — — Home equity (1) 1 274 274 — — Consumer and other — — — — — Total 2 $ 496 $ 496 — $ — _____________________ (1) Represents the following type of concession: temporary reduction of interest rate. As of and for the six months ended June 30, 2019 Restructured Year to Date TDRs that defaulted in the Year to Date that were restructured in prior twelve months # of Loans Pre- modification recorded investment Post- modification recorded investment # of Loans Post- modification recorded investment (In thousands, except number of loans) Commercial and industrial 1 $ 179 $ 179 — $ — Commercial tax exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential 2 3,222 3,222 — — Home equity 1 274 274 — — Consumer and other — — — — — Total 4 $ 3,675 $ 3,675 — $ — As of and for the three and six months ended June 30, 2019 Extension of term Temporary rate reduction Payment deferral Combination of concessions (1) Total concessions # of Post- cation ment # of Post- # of Post- # of Post- # of Post- (Dollars in thousands) Commercial and industrial 1 $ 179 — $ — — $ — — $ — 1 $ 179 Commercial real estate — — — — — — — — — — Construction and land — — — — — — — — — — Residential — — 2 3,222 — — — — 2 3,222 Home equity — — 1 274 — — — — 1 274 Consumer and other — — — — — — — — — — As of and for the three and six months ended June 30, 2018 Restructured Current Quarter TDRs that defaulted in the Current Quarter that were restructured in prior twelve months # of Loans Pre- modification recorded investment Post- modification recorded investment # of Loans Post- modification recorded investment (Dollars in thousands) Commercial and industrial (1) 1 $ 100 $ 100 — $ — Commercial real estate — — — — — Construction and land — — — — — Residential — — — — — Home equity — — — — — Consumer and other — — — — — Total 1 $ 100 $ 100 — $ — ______________________ (1) Represents the following type of concession: extension of term. Loan participations serviced for others and loans serviced for others are not included in the Company’s total loans. The following table presents a summary of the loan participations serviced for others and loans serviced for others based on class of receivable as of the dates indicated: June 30, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 9,269 $ 8,024 Commercial tax-exempt 18,824 19,105 Commercial real estate 44,613 60,688 Construction and land 20,135 39,966 Total loan participations serviced for others $ 92,841 $ 127,783 Residential $ 30,394 $ 33,168 Total loans serviced for others $ 30,394 $ 33,168 Total loans include deferred loan origination (fees)/ costs, net, of $8.4 million and $8.5 million as of June 30, 2019 and December 31, 2018 |
Allowance for Loan Losses
Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses, which is reported as a reduction of outstanding loan balances, totaled $75.1 million and $75.3 million as of June 30, 2019 and December 31, 2018 , respectively. The following table presents a summary of the changes in the allowance for loan losses for the periods indicated: As of and for the three months ended June 30, As of and for the six months ended June 30, 2019 2018 2019 2018 (In thousands) Allowance for loan losses, beginning of period: Commercial and industrial $ 15,687 $ 11,443 $ 15,912 $ 11,735 Commercial real estate 41,813 46,116 41,934 46,820 Construction and land 5,353 4,533 6,022 4,949 Residential 10,057 9,896 10,026 9,773 Home equity 796 784 1,284 835 Consumer and other 108 126 134 630 Total allowance for loan losses, beginning of period 73,814 72,898 75,312 74,742 Loans charged-off: Commercial and industrial (195 ) (125 ) (195 ) (339 ) Commercial real estate — — — (135 ) Construction and land — — — — Residential — — — (16 ) Home equity — — (562 ) — Consumer and other — (15 ) (2 ) (39 ) Total charge-offs (195 ) (140 ) (759 ) (529 ) Recoveries on loans previously charged-off: Commercial and industrial 40 152 228 234 Commercial real estate 30 50 219 175 Construction and land — — — — Residential — 27 100 27 Home equity — — — 1 Consumer and other 15 24 30 156 Total recoveries 85 253 577 593 Provision/ (credit) for loan losses: Commercial and industrial 550 911 137 751 Commercial real estate 1,898 (983 ) 1,588 (1,677 ) Construction and land (573 ) 80 (1,242 ) (336 ) Residential (502 ) (119 ) (571 ) 20 Home equity 9 552 83 500 Consumer and other (19 ) 12 (58 ) (600 ) Total provision/(credit) for loan losses 1,363 453 (63 ) (1,342 ) As of and for the three months ended June 30, As of and for the six months ended June 30, 2019 2018 2019 2018 (In thousands) Allowance for loan losses, end of period: Commercial and industrial 16,082 12,381 16,082 12,381 Commercial real estate 43,741 45,183 43,741 45,183 Construction and land 4,780 4,613 4,780 4,613 Residential 9,555 9,804 9,555 9,804 Home equity 805 1,336 805 1,336 Consumer and other 104 147 104 147 Total allowance for loan losses, end of period $ 75,067 $ 73,464 $ 75,067 $ 73,464 The allowance for loan losses is an estimate of the inherent risk of loss in the loan portfolio as of the consolidated balance sheet dates. Management estimates the level of the allowance based on all relevant information available. Changes to the required level in the allowance result in either a provision for loan loss expense, if an increase is required, or a credit to the provision, if a decrease is required. Loan losses are charged to the allowance when available information confirms that specific loans, or portions thereof, are uncollectible. Recoveries on loans previously charged-off are credited to the allowance when received in cash or when the Bank takes possession of other assets. The provision/ (credit) for loan losses and related allowance balance in the allowance for loan losses for tax-exempt commercial and industrial loans is included with commercial and industrial loans. The provision/ (credit) for loan losses and related allowance balance in the allowance for loan losses for tax-exempt commercial real estate loans is included with commercial real estate loans. There were no charge-offs or recoveries, for any period presented, for both commercial and industrial and commercial real estate tax-exempt loans. The following tables present the Company’s allowance for loan losses and loan portfolio as of June 30, 2019 and December 31, 2018 by portfolio segment, disaggregated by method of impairment analysis. The Company had no loans acquired with deteriorated credit quality as of June 30, 2019 or December 31, 2018 . June 30, 2019 Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Recorded investment (loan balance) Allowance for loan losses Recorded investment (loan balance) Allowance for loan losses Recorded investment (loan balance) Allowance for loan losses (In thousands) Commercial and industrial $ 2,110 $ 93 $ 1,104,383 $ 15,989 $ 1,106,493 $ 16,082 Commercial real estate — — 2,530,556 43,741 2,530,556 43,741 Construction and land — — 200,378 4,780 200,378 4,780 Residential 15,905 74 3,009,853 9,481 3,025,758 9,555 Home equity 2,771 24 87,159 781 89,930 805 Consumer and other — — 127,145 104 127,145 104 Total $ 20,786 $ 191 $ 7,059,474 $ 74,876 $ 7,080,260 $ 75,067 December 31, 2018 Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Recorded investment (loan balance) Allowance for loan losses Recorded investment (loan balance) Allowance for loan losses Recorded investment (loan balance) Allowance for loan losses (In thousands) Commercial and industrial $ 3,205 $ 598 $ 1,071,503 $ 15,314 $ 1,074,708 $ 15,912 Commercial real estate 546 — 2,395,146 41,934 2,395,692 41,934 Construction and land — — 240,306 6,022 240,306 6,022 Residential 9,183 75 2,939,790 9,951 2,948,973 10,026 Home equity 2,709 562 87,712 722 90,421 1,284 Consumer and other — — 143,058 134 143,058 134 Total $ 15,643 $ 1,235 $ 6,877,515 $ 74,077 $ 6,893,158 $ 75,312 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and, to a lesser extent, 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 generally determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to certain loans, deposits, and borrowings. As a service to its customers, the Company may utilize derivative instruments including customer foreign exchange forward contracts to manage its foreign exchange risk, if any. The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Asset derivatives Liability derivatives Asset derivatives Liability derivatives Balance sheet location Fair value (1) Balance sheet location Fair value (1) Balance sheet location Fair value (1) Balance sheet location Fair value (1) (In thousands) Derivatives designated as hedging instruments: Interest rate swaps Other assets $ 5 Other liabilities $ — Other assets $ 553 Other liabilities $ — Derivatives not designated as hedging instruments: Interest rate swaps Other assets 33,835 Other liabilities 34,586 Other assets 21,889 Other liabilities 22,385 Risk participation agreements Other assets 12 Other liabilities 272 Other assets 2 Other liabilities 152 Total $ 33,852 $ 34,858 $ 22,444 $ 22,537 _____________________ (1) For additional details, see Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 5: Fair Value Measurements”. The following table presents the effect of the Company’s derivative financial instruments on accumulated other comprehensive income for the three and six months ended June 30, 2019 and 2018 : Derivatives in cash flow hedging relationships Amount of gain or (loss) recognized in OCI on derivatives Location of gain or (loss) reclassified from accumulated OCI into income Amount of gain or (loss) reclassified from accumulated OCI into income Three months ended June 30, Three months ended June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Interest rate swaps $ (9 ) $ 175 Interest expense $ 191 $ 263 Total $ (9 ) $ 175 $ 191 $ 263 Derivatives in cash Amount of gain or (loss) recognized in OCI on derivatives (1) Location of gain Amount of gain or (loss) reclassified from accumulated OCI into income Six months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Interest rate swaps $ (47 ) $ 1,011 Interest expense $ 502 $ 284 Total $ (47 ) $ 1,011 $ 502 $ 284 ____________________ (1) The guidance in ASU 2017-12 requires that amounts in accumulated other comprehensive income that are included in the assessment of effectiveness should be reclassified into earnings in the same period in which the hedged forecasted transactions impact earnings. Transition guidance for this ASU further states that upon adoption, previously recorded cumulative ineffectiveness for cash flow hedges existing at the adoption date be eliminated by means of a cumulative-effect adjustment to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the initial application date. There was a $5 thousand reclassification related to the adoption of ASU 2017-12 effective January 1, 2018. The following table presents the effect of the Company’s derivative financial instruments in the consolidated statements of operations for the three and six months ended June 30, 2019 and 2018 : Location of gain or (loss) reclassified from accumulated OCI into income Amount of gain or Amount of gain or (loss) recognized in income on cash flow hedging relationships Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (In thousands) Total amounts of income and (expense) line items presented in the statement of operations in which the effects of fair value or cash flow hedges are recorded Interest expense $ 191 $ 263 $ 502 $ 284 The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships in ASC 815 Interest contracts - amount of gain or (loss) reclassified from accumulated other comprehensive income into income Interest expense $ 191 $ 263 $ 502 $ 284 The Bank has agreements with its derivative counterparties that contain provisions where, if the Bank defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Bank could also be declared in default on its derivative obligations. The Bank was in compliance with these provisions as of June 30, 2019 and December 31, 2018 . The Bank also has agreements with certain of its derivative counterparties that contain provisions where, if the Bank fails to maintain its status as a well- or adequately-capitalized institution, then the counterparty could terminate the derivative positions and the Bank would be required to settle its obligations under the agreements. The Bank was in compliance with these provisions as of June 30, 2019 and December 31, 2018 . Certain of the Bank’s agreements with its derivative counterparties contain provisions where, if specified, events or conditions occur that materially change the Bank’s creditworthiness in an adverse manner, the Bank may be required to fully collateralize its obligations under the derivative instruments. The Bank was in compliance with these provisions as of June 30, 2019 and December 31, 2018 . As of June 30, 2019 and December 31, 2018 , the termination amounts related to collateral determinations of derivatives in a liability position were $33.1 million and $2.2 million , respectively. The Company has minimum collateral posting thresholds with its derivative counterparties. As of June 30, 2019 , the Company had pledged securities with a market value of $35.2 million against its obligations under these agreements. As of December 31, 2018 , the Company had no pledged securities. The collateral posted is typically greater than the current liability position; however, due to timing of liability position changes at period end, the funding of a collateral shortfall may take place shortly following period end. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish this objective and strategy, the Bank entered into one interest rate swap during 2013 with an effective date of August 1, 2013. This interest rate swap is designated as a cash flow hedge and involves the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed payments. The swap has a notional amount of $25 million and a term of six years from its respective effective date. The interest rate swap will effectively fix the Bank’s interest payments on $25 million of its LIBOR-indexed deposit liabilities at a rate of 2.03% . Per ASU 2017-12, for derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. A portion of the balance reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made or received on the Company’s interest rate swaps. During the next twelve months, the Company estimates that an immaterial amount will be reclassified as a decrease in interest expense. The Company monitors the risk of counterparty default on an ongoing basis. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from different services the Bank provides to qualified commercial clients. The Bank offers certain derivative products directly to such clients. The Bank economically hedges derivative transactions executed with commercial clients by entering into mirror-image, offsetting derivatives with third parties. Derivative transactions executed as part of these programs are not designated in ASC 815-qualifying hedging relationships and are, therefore, marked-to-market through earnings each period. Because the derivatives have mirror-image contractual terms, the changes in fair value substantially offset through earnings. The net effect on earnings is primarily driven by changes in the credit valuation adjustment (“CVA”). The CVA represents the dollar amount of fair value adjustment related to nonperformance risk of both the Bank and its counterparties. Fees earned in connection with the execution of derivatives related to this program are recognized in the consolidated statement of operations in other income. The Bank has interest rate swaps and caps related to this program with an aggregate notional amount of $1.4 billion as of June 30, 2019 and $1.3 billion as of December 31, 2018. As of June 30, 2019 , there were no foreign currency exchange contracts and as of December 31, 2018 , there were foreign currency exchange contracts with an aggregate notional amount of $0.1 million related to this program. In addition, as a participant lender, the Bank has guaranteed performance on the pro-rated portion of swaps executed by other financial institutions. As the participant lender, the Bank is providing a partial guarantee, but is not a direct party to the related swap transactions. The Bank has no obligations under the risk participation agreements unless the borrower defaults on their swap transaction with the lead bank and the swap is in a liability position to the borrower. In that instance, the Bank has agreed to pay the lead bank a portion of the swap’s termination value at the time of the default. The derivative transactions entered into as part of these agreements are not designated, as per ASC 815, as qualifying hedging relationships and are, therefore, marked-to-market through earnings each period. As of June 30, 2019 , there were seven of these risk participation transactions with an aggregate notional amount of $59.4 million and, as of December 31, 2018 , there were seven of these risk participation transactions with an aggregate notional amount of $59.8 million . The Bank has also participated out to other financial institutions a pro-rated portion of swaps executed by the Bank. The other financial institution has no obligations under the risk participation agreements unless the borrowers default on their swap transactions with the Bank and the swaps are in liability positions to the borrower. In those instances, the other financial institution has agreed to pay the Bank a portion of the swap’s termination value at the time of the default. The derivative transactions entered into as part of these agreements are not designated, as per ASC 815, as qualifying hedging relationships and are, therefore, marked-to-market through earnings each period. As of June 30, 2019 , there were four of these risk participation transactions with a pro-rated notional amount of $20.6 million and, as of December 31, 2018 , there were four of these risk participation transactions with a pro-rated notional amount of $20.7 million . The following table presents the effect of the Bank’s derivative financial instruments not designated as hedging instruments in the consolidated statement of operations for the three and six months ended June 30, 2019 and 2018 . Amount of gain or (loss), net, recognized in income on derivatives Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income on derivatives Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (In thousands) Interest rate swaps Other income/ (expense) $ (64 ) $ (139 ) $ (255 ) $ (47 ) Risk participation agreements Other income/ (expense) (213 ) 47 (109 ) 213 Total $ (277 ) $ (92 ) $ (364 ) $ 166 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the components of income tax expense for continuing operations, discontinued operations, noncontrolling interests and the Company: Six months ended June 30, 2019 2018 (In thousands) Income from continuing operations: Income before income taxes $ 49,277 $ 52,867 Income tax expense 10,286 23,425 Net income from continuing operations $ 38,991 $ 29,442 Effective tax rate, continuing operations 20.9 % 44.3 % Income from discontinued operations: Income before income taxes $ — $ 2,388 Income tax expense 692 Net income from discontinued operations $ — $ 1,696 Effective tax rate, discontinued operations — % 29.0 % Less: Income attributable to noncontrolling interests: Income before income taxes $ 169 $ 2,018 Income tax expense — — Net income attributable to noncontrolling interests $ 169 $ 2,018 Effective tax rate, noncontrolling interests — % — % Income attributable to the Company Income before income taxes $ 49,108 $ 53,237 Income tax expense 10,286 24,117 Net income attributable to the Company $ 38,822 $ 29,120 Effective tax rate attributable to the Company 20.9 % 45.3 % The effective tax rate for continuing operations for the six months ended June 30, 2019 of 20.9% , with related tax expense of $10.3 million , was calculated based on a projected 2019 annual effective tax rate. The effective tax rate was less than the statutory rate of 21% due primarily to earnings from tax-exempt investments and income tax credits. These savings were partially offset by state and local income taxes and the accounting for investments in affordable housing projects. The effective tax rate for continuing operations for the six months ended June 30, 2018 of 44.3% , with related tax expense of $23.4 million , was calculated based on a projected 2018 annual effective tax rate. The effective tax rate was more than the statutory rate of 21% due primarily to the sale of Anchor and state and local income taxes. These items were partially offset by earnings from tax-exempt investments and income tax credits. The Company recorded tax expense of $12.7 million on the sale of Anchor in April 2018, which was primarily due to a book-to-tax basis difference associated with nondeductible goodwill. The effective tax rate for continuing operations for the six months ended June 30, 2019 is less than the effective tax rate for the same period in 2018 primarily as a result of the $12.7 million |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling interests consist of equity owned by management of the Company’s respective majority-owned affiliates, DGHM, BOS, and Anchor for the periods in which the Company had an ownership interest in them. Net income attributable to noncontrolling interests in the consolidated statements of operations represents the net income allocated to the noncontrolling interest owners of the affiliates. Net income allocated to the noncontrolling interest owners was $0.1 million and $1.0 million for the three-month periods ended June 30, 2019 and 2018 , respectively, and $0.2 million and $2.0 million for the six-month periods ended June 30, 2019 and 2018 , respectively. On the consolidated balance sheets, noncontrolling interests are included as the sum of the capital and undistributed profits allocated to the noncontrolling interest owners. Typically, this balance is included in a company’s permanent shareholders’ equity in the consolidated balance sheets. When the noncontrolling interest owners’ rights include certain redemption features, as described in ASC 480, Distinguishing Liabilities from Equity , such redeemable noncontrolling interests are classified as mezzanine equity and are not included in permanent shareholders’ equity. Due to the redemption features of the noncontrolling interests, the Company had redeemable noncontrolling interests held in mezzanine equity in the accompanying consolidated balance sheets of $1.8 million and $2.5 million as of June 30, 2019 and December 31, 2018 , respectively. The aggregate amount of such redeemable noncontrolling equity interests are recorded at the estimated maximum redemption values. The Company had no noncontrolling interests included in permanent shareholder’s equity at June 30, 2019 and December 31, 2018 . Each non-wholly owned affiliate operating agreement provides the Company and/or the noncontrolling interests with contingent call or put redemption features used for the orderly transfer of noncontrolling equity interests between the affiliate noncontrolling interest owners and the Company at either a contractually predetermined fair value; multiple of earnings before interest, taxes, depreciation, and amortization (“EBITDA”); or fair value. The Company may liquidate these noncontrolling interests in cash, shares of the Company’s common stock, or other forms of consideration dependent on the operating agreement. These agreements are discussed in Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Generally, these put and call redemption features refer to shareholder rights of both the Company and the noncontrolling interest owners of the Company’s majority-owned affiliate companies. The affiliate company noncontrolling interests generally take the form of limited liability company (“LLC”) units, profits interests, or common stock (collectively, the “noncontrolling equity interests”). In most circumstances, the put and call redemption features generally relate to the Company’s right and, in some cases, obligation to purchase and the noncontrolling equity interests’ right to sell their equity interests. There are various events that could cause the puts or calls to be exercised, such as a change in control, death, disability, retirement, resignation or termination. The puts and calls are generally to be exercised at the then fair value or a contractually agreed upon approximation thereof. The terms of these rights vary and are governed by the respective individual operating and legal documents. Redeemable noncontrolling interests recorded as of June 30, 2019 and December 31, 2018 were exclusively related to the rights of DGHM owners. The divestitures of BOS and Anchor in 2018 resulted in the Company no longer carrying noncontrolling interests within permanent shareholders' equity. The following tables present a rollforward of the Company’s redeemable noncontrolling interests and noncontrolling interests for the periods indicated: Three months ended Six months ended June 30, 2019 June 30, 2019 Redeemable noncontrolling interests Redeemable noncontrolling interests (In thousands) Noncontrolling interests at beginning of period $ 662 $ 2,526 Net income attributable to noncontrolling interests 69 169 Distributions (69 ) (169 ) Purchases/ (sales) of ownership interests — 12 Amortization of equity compensation 9 26 Adjustments to fair value 1,115 (778 ) Noncontrolling interests at end of period $ 1,786 $ 1,786 Three months ended Six months ended June 30, 2018 June 30, 2018 Redeemable noncontrolling interests Noncontrolling interests Redeemable noncontrolling interests Noncontrolling interests (In thousands) Noncontrolling interests at beginning of period $ 16,322 $ 4,825 $ 17,461 $ 5,186 Net income attributable to noncontrolling interests 732 236 1,491 527 Distributions (712 ) (227 ) (1,449 ) (509 ) Purchases/ (sales) of ownership interests (6,520 ) (3,051 ) (6,353 ) (3,051 ) Amortization of equity compensation 126 — 248 161 Adjustments to fair value 799 213 (651 ) (318 ) Noncontrolling interests at end of period $ 10,747 $ 1,996 $ 10,747 $ 1,996 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table presents a summary of the amounts reclassified from accumulated other comprehensive income/ (loss) for the three and six months ended June 30, 2019 and 2018 : Description of component of accumulated other comprehensive income/ (loss) Three months ended June 30, Six months ended June 30, Affected line item in Statement of Operations 2019 2018 2019 2018 (In thousands) (In thousands) Net realized gain/ (loss) on cash flow hedges: Hedges related to deposits and borrowings: Pre-tax gain/ (loss) $ 191 $ 263 $ 502 $ 284 Interest (expense) Tax (expense)/ benefit (55 ) (76 ) (146 ) (83 ) Income tax (expense)/ benefit Net $ 136 $ 187 $ 356 $ 201 Net income/ (loss) attributable to the Company Total reclassifications for the period, net of tax $ 136 $ 187 $ 356 $ 201 On January 1, 2018, the Company elected to early adopt ASU No. 2017-12. As a result, the Company reclassified unrealized losses on cash flow hedges of $5 thousand from accumulated other comprehensive income/ (loss) to beginning retained earnings. On January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the Company reclassified unrealized gains on equity securities available-for-sale, net of tax, of $339 thousand from accumulated other comprehensive income/ (loss) to beginning retained earnings. Components of accumulated other comprehensive income/ (loss) Unrealized gain/ (loss) on securities available-for-sale Unrealized gain/ (loss) on cash flow hedges Unrealized gain/ (loss) on other Accumulated other comprehensive income/ (loss) (In thousands) Balance at December 31, 2017 $ (8,140 ) $ 332 $ (850 ) $ (8,658 ) Other comprehensive income/ (loss) before reclassifications (14,848 ) 712 1 (14,135 ) Reclassified from other comprehensive income/ (loss) — (201 ) — (201 ) Other comprehensive income/ (loss), net (14,848 ) 511 1 (14,336 ) Reclassification from the adoption of ASUs 2017-12 and 2016-01 $ (339 ) $ 5 $ — $ (334 ) Balance at June 30, 2018 $ (23,327 ) $ 848 $ (849 ) $ (23,328 ) Balance at December 31, 2018 $ (17,556 ) $ 391 $ (554 ) $ (17,719 ) Other comprehensive income/ (loss) before reclassifications 22,233 (33 ) — 22,200 Reclassified from other comprehensive income/ (loss) — (356 ) — (356 ) Other comprehensive income/ (loss), net 22,233 (389 ) — 21,844 Balance at June 30, 2019 $ 4,677 $ 2 $ (554 ) $ 4,125 |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In the third and fourth quarters of 2018 and the first quarter of 2019, the Company incurred restructuring charges of $5.8 million , $2.1 million , and $1.6 million , respectively. The charges were in connection with a previously announced reduction to the Company’s workforce of approximately 7% of total staffing, which included executive transition changes as well as other employee benefit and technology related initiatives. The restructuring is intended to improve the Company’s operating efficiency and enhance earnings. The following table presents a summary of the restructuring activity for the three and six months ended June 30, 2019 and 2018 : Severance Charges Other Associated Costs Total (In thousands) Accrued charges at December 31, 2018 $ 3,896 $ 790 $ 4,686 Cost incurred 1,646 — 1,646 Costs paid (1,986 ) — (1,986 ) Accrued charges at March 31, 2019 3,556 790 4,346 Costs paid (1,364 ) — (1,364 ) Accrued charges at June 30, 2019 $ 2,192 $ 790 $ 2,982 Accrued charges at December 31, 2017 $ 337 $ — $ 337 Costs paid (254 ) — (254 ) Accrued charges at March 31, 2018 83 — 83 Costs paid (83 ) — (83 ) Accrued charges at June 30, 2018 $ — $ — $ — |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted ASU 2014-09 et al . As stated in Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 15: Recent Accounting,” the implementation of the new standard did not have an impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, Revenue from Contracts with Customers (“ASC 606”), while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under ASC 605, Revenue Recognition . ASC 606 does not apply to revenue associated with financial instruments, including interest income on loans and investment securities. In addition, certain noninterest income such as fees associated with mortgage servicing rights, late fees, BOLI income, and derivatives are also not in scope of the new guidance. ASC 606 is applicable to noninterest income such as investment management fees, wealth advisory fees, wealth management and trust fees, and certain banking fees. However, the recognition of this revenue did not change upon adoption of ASC 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest income considered in-scope of ASC 606 is discussed below. Investment management fees Investment management fees are earned for the management of a series of accounts and funds in which clients invest directly, acting as a sub-advisor to larger investment management companies, or private client account management. The Company’s performance obligation is satisfied over time and the resulting fees are recognized monthly, based upon either the beginning-of-quarter (in advance) or quarter-end (in arrears) market value of the assets under management and advisory (“AUM”) and the applicable fee rate, depending on the terms of the contract. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company may earn performance-based incentives on certain contracts. Receivables are recorded on the consolidated balance sheet in the fees receivable line item. All of the investment management fee income on the consolidated statement of operations for the three and six months ended June 30, 2019 and 2018 is considered in-scope of ASC 606. Wealth advisory fees Wealth advisory fees are earned for providing financial advisory services to clients. The Company’s performance obligation under these contracts is satisfied over time as the financial advisory services are provided. Fees are recognized monthly based either on a fixed fee amount or are based on the quarter-end (in arrears) market value of the AUM and the applicable fee rate (“asset based fees”), depending on the terms of the contract. Payment on fixed fee contracts is received based on a schedule outlined in the contract, while payment on asset based fees are generally received a few days after quarter end through a direct charge to customers’ accounts. No performance based incentives are earned on wealth advisory contracts. Receivables are recorded on the consolidated balance sheet in the fees receivable line item. Deferred revenues related to the fixed fee contracts of $6.5 million and $6.7 million as of June 30, 2019 and 2018 , respectively, are recorded on the consolidated balance sheet within the other liabilities line item. All of the wealth advisory fee income on the consolidated statement of operations for the three and six months ended June 30, 2019 and 2018 is considered in-scope of ASC 606. Wealth management and trust fees Wealth management and trust fees are earned for providing investment management, wealth management, retirement plan advisory, family office, financial planning, and trust services to clients. The Company’s performance obligation under these contracts is satisfied over time as the wealth management services are provided. Fees are recognized monthly based on the average monthly, beginning-of-quarter, or, for a small number of clients, end-of-quarter market value of the AUM and the applicable fee rate, depending on the terms of the contract. No performance based incentives are earned on wealth management contracts. Receivables are recorded on the consolidated balance sheet in the fees receivable line item. Trust fees are earned when the Company is appointed as trustee for clients. As trustee, the Company administers the client’s trust and manages the assets of the trust including investments and property. The Company’s performance obligation under these agreements is satisfied over time as the administration and management services are provided. Fees are recognized monthly or, in certain circumstances, quarterly based on a percentage of the market value of the account as outlined in the agreement. Payment frequency is defined in the individual contracts which primarily stipulate monthly in arrears. No performance based incentives are earned on trust fee contracts. Receivables are recorded on the consolidated balance sheet in the fees receivable line item. All of the wealth management and trust fee income on the consolidated statement of operations for the three and six months ended June 30, 2019 and 2018 is considered in-scope of ASC 606. Other banking fee income The Bank charges a variety of fees to its clients for services provided on the deposit and deposit management related accounts. Each fee is either transaction based or assessed monthly. The types of fees include service charges on accounts, overdraft fees, maintenance fees, ATM fee charges, and other miscellaneous charges related to the accounts. These fees are not governed by individual contracts with clients. They are charges to clients based on disclosures presented to clients upon opening these accounts along with updated disclosures when changes are made to the fee structures. The transaction-based fees are recognized in revenue when charged to the client based on specific activity on the client’s account. Monthly service/maintenance charges are recognized in the month they are earned and are charged directly to the client’s account. The Bank also charges fees for treasury activities such as foreign exchange fees for clients with a banking relationship. These fees are recorded when earned via completion of the transaction for the client. The completion of the transaction is deemed to be the performance obligation of the transaction. The related revenue is recorded through a direct charge to the client’s account. There are no individual agreements or contracts with clients as it relates to foreign exchange fees as they are governed by client disclosure statements and the Bank’s internal policies and procedures. For the three months ended June 30, 2019 and 2018 , $0.6 million and $1.1 million , respectively, of other banking fee income as described above is considered in-scope for ASC 606. For the six months ended June 30, 2019 and 2018, $1.3 million and $2.0 million , respectively, of other banking fee income as described above is considered in-scope for ASC 606. |
Lease Accounting
Lease Accounting | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease Accounting | Lease Accounting On January 1, 2019, the Company adopted ASU 2016-02. As stated in Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 1: Basis of Presentation and Summary of Significant Accounting Policies”, the implementation of the new standard had a material effect on the financial statements. The most significant effects relate to the recognition of new operating ROU assets and operating lease liabilities on the balance sheet for real estate operating leases, providing significant new disclosures about leasing activities, and the impact of additional assets on certain financial measures, such as capital ratios and return on average asset ratios. On adoption, the Company recognized approximately $124 million of lease liabilities and $108 million of ROU assets on the face of the balance sheet. ROU assets obtained in exchange for lease liabilities are net of tenant improvement allowances and deferred rent. There was no impact to the Company’s consolidated statement of cash flows upon adoption, since the net impact of all adjustments recorded upon transition represents non-cash activity. The Company, as lessee, has 42 real estate leases for office and ATM locations classified as operating leases. The Company determines if an arrangement is a lease or contains a lease at inception. The terms of the real estate leases generally have annual increases in payments based off of a fixed or variable rate, such as the Consumer Price Index rate, that is outlined within the respective contracts. Generally, the initial terms of the leases for our leased properties range from five to fifteen years. Most of the leases also include options to renew for periods of five to ten years at contractually agreed upon rates or at market rates at the time of the extension. On a quarterly basis, the Company evaluates whether the renewal of each lease is reasonably certain. If the lease doesn’t provide the implicit interest rate, the Bank uses its incremental borrowing rate at the commencement date of the lease in determining the present value of lease payments. No other significant judgments or assumptions were made in applying the requirements of ASU 2016-02. The following table presents information about the Company's leases as of the dates indicated. Three months ended June 30, Six months ended June 30, 2019 2019 (In thousands) Lease cost Operating lease cost $ 4,841 $ 9,526 Short-term lease cost/ (refunds) (3 ) 29 Variable lease cost 2 4 Less: Sublease income (28 ) (46 ) Total operating lease cost $ 4,812 $ 9,513 Six months ended June 30, (In thousands, except years and percentages) Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 10,002 ROU assets obtained in exchange for new operating lease liabilities $ 10,510 Weighted-average remaining lease term for operating leases 8.3 years Weighted-average discount rate for operating leases 3.4 % The Company is obligated for minimum payments under non-cancelable operating leases. In accordance with the terms of these leases, the Company is currently committed to minimum annual payments as follows as of June 30, 2019 : June 30, 2019 (In thousands) Remainder of 2019 $ 10,095 2020 20,224 2021 20,406 2022 20,360 2023 19,575 Thereafter 57,005 Total future minimum lease payments 147,665 Less: Amounts representing interest (20,925 ) Present value of net future minimum lease payments $ 126,740 Prior to the adoption of ASC 842, the Company’s operating leases were not recognized on the balance sheet. The following table presents the undiscounted future minimum lease payments under the Company’s operating leases as of December 31, 2018 : December 31, 2018 (In thousands) 2019 $ 20,053 2020 19,344 2021 19,064 2022 18,802 2023 16,552 Thereafter 41,412 Total $ 135,227 Rent expense for the three and six months ended June 30, 2018 , prior to the adoption of ASU 2016-02, was $5.4 million and $10.8 million |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 replaces existing revenue recognition standards and expands the disclosure requirements for revenue agreements with customers. ASU 2014-09 has been subsequently amended by additional ASUs, including ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, collectively , “ASU 2014-09 et al. ” Under the new standard, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. ASU 2014-09 et al . does not apply to revenue associated with financial instruments such as loans and securities. ASU 2014-09 et al . was adopted using the modified retrospective transition method as of January 1, 2018, however no cumulative effect adjustment was required. This new guidance was applied to all revenue contracts in place at the date of adoption. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 13: Revenue Recognition” for further details. In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This ASU requires equity investments to be measured at fair value with changes in fair value, net of tax, recognized in net income. As a result of implementing this standard, the Company reclassified $339 thousand in unrealized gains on available-for-sale equity investments, net of tax, from accumulated other comprehensive income to retained earnings as of January 1, 2018. Additionally, this amendment requires that entities use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. As a result of implementing this standard, the Company’s updated process includes identifying a fair value for loans using the exit price notion. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 5: Fair Value Measurements” for further details. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). This update and the related amendments to Topic 842 require lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”); ASU No. 2018-11, Leases (Topic 842), Targeted Improvements (“ASU 2018-11”); and ASU No. 2019-01, Leases (Topic 842), Codification Improvements (“ASU 2019-01”). The new standard establishes a right-of-use model ("ROU") that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard was effective on January 1, 2019, with early adoption permitted. The Company adopted these provisions on January 1, 2019. The most significant effects relate to the recognition of new ROU assets and lease liabilities on the balance sheet for real estate operating leases and providing significant new disclosures about leasing activities. Additionally, the Company elected the package of practical expedients, as prescribed by ASU 2016-02. The Company elected not to reassess whether any expired or existing contracts are or contain leases nor the lease classification of those leases. The Company also elected not to reassess any initial direct costs for any existing leases. On adoption, the Company recognized approximately $124 million of lease liabilities and $108 million of ROU assets. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 14: Lease Accounting” for further details. In June 2016, the FASB issued ASU 2016-13, Financial Instruments (Topic 326) (“ASU 2016-13”). This update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this update replace the incurred loss impairment methodology in current GAAP with a current expected credit losses (“CECL”) model methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU will be effective for fiscal years beginning after December 15, 2019. Early adoption is available as of the fiscal year beginning after December 15, 2018, but the Company does not plan on adopting early. The Company plans to adopt on January 1, 2020 utilizing a modified retrospective approach and is currently assessing the impact on the Company's consolidated financial statements and disclosures. Management assembled a project team that has developed an approach for implementation including selecting a third-party software service provider, assessing the key differences and gaps between its current allowance methodologies and models with those it is considering to use upon adoption, identifying the necessary data requirements, testing the material data inputs, and assessing and validating potential model options. The Company has also begun developing accounting policies and establishing internal controls relevant to the updated methodologies and models. In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). This amendment requires an employer to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. This ASU was effective for fiscal years beginning after December 15, 2017, and interim periods within those years. For the three and six months ended June 30, 2019, $339 thousand and $540 thousand , respectively, are presented within other expense that would have been presented within salaries and employee benefits prior to adoption of ASU 2017-07. For the three and six months ended June 30, 2018, $145 thousand and $280 thousand , respectively, are presented within other expense that would have been presented within salaries and employee benefits prior to adoption of ASU 2017-07. In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). The standard is intended to improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and to reduce the complexity of and simplify the application of hedge accounting by preparers. ASU No. 2017-12 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The Company early adopted this ASU as of January 1, 2018 with a modified retrospective transition. As a result of implementing this standard, the Company reclassified $5 thousand in unrealized losses on derivatives from accumulated other comprehensive income to retained earnings as of January 1, 2018. This ASU will provide more flexibility in the Company’s risk management activities and we believe it will enhance the Company’s ability to employ risk management strategies, while improving the transparency and understanding of those strategies for financial statement users. 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 (“ASU 2018-02”) . This update was issued to address a narrow-scope financial reporting issue that arose as a consequence of the change in the tax law. On December 22, 2017, the U.S. federal government enacted the Tax Cuts and Jobs Act (the “Tax Act”), which, among other significant changes, lowers the federal corporate tax rate from 35% to 21% effective January 1, 2018. This update requires a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the enactment of the Tax Act. ASC 740 requires that the tax effects of changes in tax rates be recognized in income tax expense/ (benefit) attributable to continuing operations in the period in which the law is enacted. As a result, the tax effect of accumulated other comprehensive income does not reflect the appropriate tax rate. The amendments in this ASU would eliminate the stranded tax effects associated with the change in the federal corporate income tax rate related to the Tax Act and would improve the usefulness of information reported to financial statement users. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted for public business entities for reporting periods for which financial statements have not yet been issued. The Company adopted this ASU on December 31, 2017 and made a one-time reclassification of $1.5 million from accumulated other comprehensive income to retained earnings, which is reflected in the consolidated statement of changes in shareholders’ equity. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”), and ASU 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”). These updates clarify the guidance in ASU 2016-02 which introduced Topic 842 and add an additional transition method for leases. ASU 2018-11 allows entities to initially apply the new lease standard at the adoption date (January 1, 2019 for the Company) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. This transition method is in addition to the initial modified retrospective transition method, which would require an entity to initially apply the new leases standard (subject to specific transition requirements and optional practical expedients) at the beginning of the earliest period presented in the financial statements. Lessees also must provide the new and enhanced disclosures in the period of adoption; ASU 2018-11 would not require the amended disclosures of Topic 842 for comparative periods. The Company adopted these provisions along with those of ASU 2016-02 as of January 1, 2019. The Company has elected to use the prospective transition method and has deemed a cumulative effect adjustment not necessary at adoption. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 14: Lease Accounting” for further details. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The amendments in ASU 2018-13 modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. Among other changes, this update removes the requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. This update adds to required disclosures for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. The Company is still assessing the potential disclosure impact for these amendments and whether to adopt the provisions prior to January 1, 2020. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). The amendments in ASU 2018-14 remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. This update is effective on a retrospective basis for interim and annual reporting periods beginning January 1, 2021. The Company is still assessing the potential impact for this update and how it applies to the Company’s disclosures surrounding its two non-qualified supplemental executive retirement plans (“SERP”) and a long-term incentive plan (“LTIP”) at one of its affiliate companies. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) (“ASU 2018-15”). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in ASU 2018-15. This update is effective on a retrospective basis for interim and annual reporting periods beginning January 1, 2021. The Company early adopted this update on January 1, 2019. The adoption of this update did not have a material impact on the consolidated financial statements. In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting (“ASU 2018-16”). ASU 2018-16 introduces OIS Rate based on the SOFR as an acceptable US benchmark interest rate for purposes of applying hedge accounting under Topic 815. This update is effective for interim and annual reporting periods beginning after December 15, 2018 because the Company has already adopted ASU 2017-12. The Company adopted this update on January 1, 2019. The adoption of this update did not have a significant impact on the consolidated financial statements. In April and May 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (“ASU 2019-04”) and ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief (“ASU 2019-05”), respectively. These updates clarify the guidance in ASU 2016-13 which introduced Topic 326. ASU 2019-04 clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement. ASU 2019-05 provides entities that have certain instruments within the scope of subtopic 326-20 with an option to irrevocably elect the fair value option. These ASUs will be effective for fiscal years beginning after December 15, 2019. Early adoption is available as of the fiscal year beginning after December 15, 2018, but the Company does not plan on adopting early. The Company is still assessing the potential disclosure impact for these amendments and will adopt on January 1, 2020 in conjunction with ASU 2016-13. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | The Company’s significant accounting policies are described in Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , as filed with the SEC. For interim reporting purposes, the Company follows the same significant accounting policies, except for the following new accounting pronouncements from the Financial Accounting Standards Board (the “FASB”) that were adopted effective January 1, 2019: • In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). This update and the related amendments to Topic 842 require lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”); ASU No. 2018-11, Leases (Topic 842), Targeted Improvements (“ASU 2018-11”); and ASU No. 2019-01, Leases (Topic 842), Codification Improvements (“ASU 2019-01”). The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard was effective on January 1, 2019 and the Company adopted these provisions on January 1, 2019. The most significant effects relate to the recognition of new ROU assets and lease liabilities on the balance sheet for real estate operating leases, providing significant new disclosures about leasing activities, and the impact of additional assets on certain financial measures such as capital ratios and return on average asset ratios. Additionally, the Company elected the package of practical expedients, as prescribed by ASU 2016-02. The Company elected not to reassess whether any expired or existing contracts are or contain leases nor the lease classification of those leases. The Company also elected not to reassess any initial direct costs for any existing leases. On adoption, the Company recognized approximately $124 million of lease liabilities and $108 million of ROU assets. • In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) (“ASU 2018-15”). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in ASU 2018-15. This update is effective on a retrospective basis for the Company beginning January 1, 2021. The Company early adopted this update on January 1, 2019. The adoption of this update did not have an impact on the consolidated financial statements. • In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting (“ASU 2018-16”). ASU 2018-16 introduces OIS Rate based on the SOFR as an acceptable US benchmark interest rate for purposes of applying hedge accounting under Topic 815. This update is effective for interim and annual reporting periods beginning after December 15, 2018 because the Company has already adopted ASU 2017-12. The Company adopted this update on January 1, 2019. The adoption of this update did not have an impact on the consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 replaces existing revenue recognition standards and expands the disclosure requirements for revenue agreements with customers. ASU 2014-09 has been subsequently amended by additional ASUs, including ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, collectively , “ASU 2014-09 et al. ” Under the new standard, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. ASU 2014-09 et al . does not apply to revenue associated with financial instruments such as loans and securities. ASU 2014-09 et al . was adopted using the modified retrospective transition method as of January 1, 2018, however no cumulative effect adjustment was required. This new guidance was applied to all revenue contracts in place at the date of adoption. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 13: Revenue Recognition” for further details. In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This ASU requires equity investments to be measured at fair value with changes in fair value, net of tax, recognized in net income. As a result of implementing this standard, the Company reclassified $339 thousand in unrealized gains on available-for-sale equity investments, net of tax, from accumulated other comprehensive income to retained earnings as of January 1, 2018. Additionally, this amendment requires that entities use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. As a result of implementing this standard, the Company’s updated process includes identifying a fair value for loans using the exit price notion. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 5: Fair Value Measurements” for further details. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). This update and the related amendments to Topic 842 require lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”); ASU No. 2018-11, Leases (Topic 842), Targeted Improvements (“ASU 2018-11”); and ASU No. 2019-01, Leases (Topic 842), Codification Improvements (“ASU 2019-01”). The new standard establishes a right-of-use model ("ROU") that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard was effective on January 1, 2019, with early adoption permitted. The Company adopted these provisions on January 1, 2019. The most significant effects relate to the recognition of new ROU assets and lease liabilities on the balance sheet for real estate operating leases and providing significant new disclosures about leasing activities. Additionally, the Company elected the package of practical expedients, as prescribed by ASU 2016-02. The Company elected not to reassess whether any expired or existing contracts are or contain leases nor the lease classification of those leases. The Company also elected not to reassess any initial direct costs for any existing leases. On adoption, the Company recognized approximately $124 million of lease liabilities and $108 million of ROU assets. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 14: Lease Accounting” for further details. In June 2016, the FASB issued ASU 2016-13, Financial Instruments (Topic 326) (“ASU 2016-13”). This update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this update replace the incurred loss impairment methodology in current GAAP with a current expected credit losses (“CECL”) model methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU will be effective for fiscal years beginning after December 15, 2019. Early adoption is available as of the fiscal year beginning after December 15, 2018, but the Company does not plan on adopting early. The Company plans to adopt on January 1, 2020 utilizing a modified retrospective approach and is currently assessing the impact on the Company's consolidated financial statements and disclosures. Management assembled a project team that has developed an approach for implementation including selecting a third-party software service provider, assessing the key differences and gaps between its current allowance methodologies and models with those it is considering to use upon adoption, identifying the necessary data requirements, testing the material data inputs, and assessing and validating potential model options. The Company has also begun developing accounting policies and establishing internal controls relevant to the updated methodologies and models. In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). This amendment requires an employer to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. This ASU was effective for fiscal years beginning after December 15, 2017, and interim periods within those years. For the three and six months ended June 30, 2019, $339 thousand and $540 thousand , respectively, are presented within other expense that would have been presented within salaries and employee benefits prior to adoption of ASU 2017-07. For the three and six months ended June 30, 2018, $145 thousand and $280 thousand , respectively, are presented within other expense that would have been presented within salaries and employee benefits prior to adoption of ASU 2017-07. In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). The standard is intended to improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and to reduce the complexity of and simplify the application of hedge accounting by preparers. ASU No. 2017-12 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The Company early adopted this ASU as of January 1, 2018 with a modified retrospective transition. As a result of implementing this standard, the Company reclassified $5 thousand in unrealized losses on derivatives from accumulated other comprehensive income to retained earnings as of January 1, 2018. This ASU will provide more flexibility in the Company’s risk management activities and we believe it will enhance the Company’s ability to employ risk management strategies, while improving the transparency and understanding of those strategies for financial statement users. 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 (“ASU 2018-02”) . This update was issued to address a narrow-scope financial reporting issue that arose as a consequence of the change in the tax law. On December 22, 2017, the U.S. federal government enacted the Tax Cuts and Jobs Act (the “Tax Act”), which, among other significant changes, lowers the federal corporate tax rate from 35% to 21% effective January 1, 2018. This update requires a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the enactment of the Tax Act. ASC 740 requires that the tax effects of changes in tax rates be recognized in income tax expense/ (benefit) attributable to continuing operations in the period in which the law is enacted. As a result, the tax effect of accumulated other comprehensive income does not reflect the appropriate tax rate. The amendments in this ASU would eliminate the stranded tax effects associated with the change in the federal corporate income tax rate related to the Tax Act and would improve the usefulness of information reported to financial statement users. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted for public business entities for reporting periods for which financial statements have not yet been issued. The Company adopted this ASU on December 31, 2017 and made a one-time reclassification of $1.5 million from accumulated other comprehensive income to retained earnings, which is reflected in the consolidated statement of changes in shareholders’ equity. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”), and ASU 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”). These updates clarify the guidance in ASU 2016-02 which introduced Topic 842 and add an additional transition method for leases. ASU 2018-11 allows entities to initially apply the new lease standard at the adoption date (January 1, 2019 for the Company) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. This transition method is in addition to the initial modified retrospective transition method, which would require an entity to initially apply the new leases standard (subject to specific transition requirements and optional practical expedients) at the beginning of the earliest period presented in the financial statements. Lessees also must provide the new and enhanced disclosures in the period of adoption; ASU 2018-11 would not require the amended disclosures of Topic 842 for comparative periods. The Company adopted these provisions along with those of ASU 2016-02 as of January 1, 2019. The Company has elected to use the prospective transition method and has deemed a cumulative effect adjustment not necessary at adoption. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 14: Lease Accounting” for further details. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The amendments in ASU 2018-13 modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. Among other changes, this update removes the requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. This update adds to required disclosures for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. The Company is still assessing the potential disclosure impact for these amendments and whether to adopt the provisions prior to January 1, 2020. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). The amendments in ASU 2018-14 remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. This update is effective on a retrospective basis for interim and annual reporting periods beginning January 1, 2021. The Company is still assessing the potential impact for this update and how it applies to the Company’s disclosures surrounding its two non-qualified supplemental executive retirement plans (“SERP”) and a long-term incentive plan (“LTIP”) at one of its affiliate companies. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) (“ASU 2018-15”). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in ASU 2018-15. This update is effective on a retrospective basis for interim and annual reporting periods beginning January 1, 2021. The Company early adopted this update on January 1, 2019. The adoption of this update did not have a material impact on the consolidated financial statements. In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting (“ASU 2018-16”). ASU 2018-16 introduces OIS Rate based on the SOFR as an acceptable US benchmark interest rate for purposes of applying hedge accounting under Topic 815. This update is effective for interim and annual reporting periods beginning after December 15, 2018 because the Company has already adopted ASU 2017-12. The Company adopted this update on January 1, 2019. The adoption of this update did not have a significant impact on the consolidated financial statements. In April and May 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (“ASU 2019-04”) and ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief (“ASU 2019-05”), respectively. These updates clarify the guidance in ASU 2016-13 which introduced Topic 326. ASU 2019-04 clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement. ASU 2019-05 provides entities that have certain instruments within the scope of subtopic 326-20 with an option to irrevocably elect the fair value option. These ASUs will be effective for fiscal years beginning after December 15, 2019. Early adoption is available as of the fiscal year beginning after December 15, 2018, but the Company does not plan on adopting early. The Company is still assessing the potential disclosure impact for these amendments and will adopt on January 1, 2020 in conjunction with ASU 2016-13. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted EPS | The following tables present the computations of basic and diluted EPS: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (In thousands, except share and per share data) Basic earnings per share - Numerator: Net income from continuing operations $ 19,449 $ 7,404 $ 38,991 $ 29,442 Less: Net income attributable to noncontrolling interests 69 968 169 2,018 Net income from continuing operations attributable to the Company 19,380 6,436 38,822 27,424 Decrease/ (increase) in noncontrolling interests’ redemption values (1) (816 ) (408 ) 741 438 Dividends on preferred stock — (3,116 ) — (3,985 ) Total adjustments to income attributable to common shareholders (816 ) (3,524 ) 741 (3,547 ) Net income from continuing operations attributable to common shareholders, treasury stock method 18,564 2,912 39,563 23,877 Net income from discontinued operations — (2 ) — 1,696 Net income attributable to common shareholders, treasury stock method $ 18,564 $ 2,910 $ 39,563 $ 25,573 Basic earnings per share - Denominator: Weighted average basic common shares outstanding 83,565,780 83,509,115 83,426,213 83,304,573 Per share data - Basic earnings per share from: Continuing operations $ 0.22 $ 0.03 $ 0.47 $ 0.29 Discontinued operations $ — $ — $ — $ 0.02 Total attributable to common shareholders $ 0.22 $ 0.03 $ 0.47 $ 0.31 Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (In thousands, except share and per share data) Diluted earnings per share - Numerator: Net income from continuing operations attributable to common shareholders, after assumed dilution $ 18,564 $ 2,912 $ 39,563 $ 23,877 Net income from discontinued operations — (2 ) — 1,696 Net income attributable to common shareholders, after assumed dilution $ 18,564 $ 2,910 $ 39,563 $ 25,573 Diluted earnings per share - Denominator: Weighted average basic common shares outstanding 83,565,780 83,509,115 83,426,213 83,304,573 Dilutive effect of: Time-based and market-based stock options, performance-based and time-based restricted stock, and performance-based and time-based restricted stock units, and other dilutive securities (2) 483,192 1,076,049 609,837 1,112,938 Warrants to purchase common stock — 828,411 — 804,463 Dilutive common shares 483,192 1,904,460 609,837 1,917,401 Weighted average diluted common shares outstanding (2) 84,048,972 85,413,575 84,036,050 85,221,974 Per share data - Diluted earnings per share from: Continuing operations $ 0.22 $ 0.03 $ 0.47 $ 0.28 Discontinued operations $ — $ — $ — $ 0.02 Total attributable to common shareholders $ 0.22 $ 0.03 $ 0.47 $ 0.30 Dividends per share declared and paid on common stock $ 0.12 $ 0.12 $ 0.24 $ 0.24 _____________________ (1) See Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with the FASB Accounting Standards Codification Distinguishing Liabilities from Equity (“ASC 480”), an increase in redemption value from period to period reduces income attributable to common shareholders. Decreases in redemption value from period to period increase income attributable to common shareholders, but only to the extent that the cumulative change in redemption value remains a cumulative increase since adoption of this standard in the first quarter of 2009. (2) The diluted EPS computations for the three and six months ended June 30, 2019 and 2018 do not assume the conversion, exercise, or contingent issuance of the following shares for the following periods because the result would have been anti-dilutive for the periods indicated. As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Shares excluded due to exercise price exceeding the average market price of common shares during the period (total outstanding): (In thousands) Potential common shares from: Options, restricted stock, or other dilutive securities 750 16 820 136 Total shares excluded due to exercise price exceeding the average market price of common shares during the period 750 16 820 136 |
Schedule of antidilutive securities excluded from computation of earnings per share | As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Shares excluded due to exercise price exceeding the average market price of common shares during the period (total outstanding): (In thousands) Potential common shares from: Options, restricted stock, or other dilutive securities 750 16 820 136 Total shares excluded due to exercise price exceeding the average market price of common shares during the period 750 16 820 136 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | The following tables present a reconciliation of the revenues, profits, assets, and other significant items of reportable segments as of and for the three and six months ended June 30, 2019 and 2018 . Interest expense on junior subordinated debentures is reported at the Holding Company. Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Private Banking (In thousands) Net interest income $ 58,419 $ 58,447 $ 117,756 $ 116,578 Fees and other income 2,804 2,825 6,062 5,300 Total revenues 61,223 61,272 123,818 121,878 Provision/ (credit) for loan losses 1,363 453 (63 ) (1,342 ) Operating expense (1) 37,805 39,670 79,122 79,297 Income before income taxes 22,055 21,149 44,759 43,923 Income tax expense 4,878 3,981 9,308 8,594 Net income from continuing operations 17,177 17,168 35,451 35,329 Net income attributable to the Company $ 17,177 $ 17,168 $ 35,451 $ 35,329 Assets $ 8,619,399 $ 8,637,774 $ 8,619,399 $ 8,637,774 Depreciation $ 2,373 $ 2,031 $ 5,043 $ 3,615 Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Wealth Management and Trust (In thousands) Fees and other income $ 10,815 $ 11,293 $ 21,776 $ 23,567 Operating expense (1) 9,438 11,058 19,681 21,752 Income before income taxes 1,377 235 2,095 1,815 Income tax expense 417 34 620 509 Net income from continuing operations 960 201 1,475 1,306 Net income attributable to the Company $ 960 $ 201 $ 1,475 $ 1,306 Assets $ 89,659 $ 73,202 $ 89,659 $ 73,202 Amortization of intangibles $ 672 $ 701 $ 1,344 $ 1,402 Depreciation $ 252 $ 334 $ 539 $ 655 Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Affiliate Partners (2) (In thousands) Net interest income $ 104 $ 79 $ 210 $ 131 Fees and other income 10,596 17,951 21,411 42,898 Total revenues 10,700 18,030 21,621 43,029 Operating expense 7,070 12,347 14,543 31,408 Income before income taxes 3,630 5,683 7,078 11,621 Income tax expense 1,199 1,463 2,299 2,920 Net income from continuing operations 2,431 4,220 4,779 8,701 Noncontrolling interests 69 968 169 2,018 Net income attributable to the Company $ 2,362 $ 3,252 $ 4,610 $ 6,683 Assets $ 71,466 $ 83,364 $ 71,466 $ 83,364 Amortization of intangibles $ — $ 48 $ — $ 97 Depreciation $ 130 $ 196 $ 257 $ 393 Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Holding Company and Eliminations (In thousands) Net interest income $ (1,063 ) $ (981 ) $ (2,168 ) $ (1,781 ) Fees and other income 165 26 379 73 Total revenues (898 ) (955 ) (1,789 ) (1,708 ) Operating expense 1,346 1,309 2,866 2,784 Income/ (loss) before income taxes (2,244 ) (2,264 ) (4,655 ) (4,492 ) Income tax expense/ (benefit) (1,125 ) 11,921 (1,941 ) 11,402 Net income/ (loss) from continuing operations (1,119 ) (14,185 ) (2,714 ) (15,894 ) Discontinued operations (3) — (2 ) — 1,696 Net income/ (loss) attributable to the Company $ (1,119 ) $ (14,187 ) $ (2,714 ) $ (14,198 ) Assets (including eliminations) $ (67,651 ) $ (78,137 ) $ (67,651 ) $ (78,137 ) Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Total Company (2) (In thousands) Net interest income $ 57,460 $ 57,545 $ 115,798 $ 114,928 Fees and other income 24,380 32,095 49,628 71,838 Total revenues 81,840 89,640 165,426 186,766 Provision/ (credit) for loan losses 1,363 453 (63 ) (1,342 ) Operating expense 55,659 64,384 116,212 135,241 Income before income taxes 24,818 24,803 49,277 52,867 Income tax expense 5,369 17,399 10,286 23,425 Net income from continuing operations 19,449 7,404 38,991 29,442 Noncontrolling interests 69 968 169 2,018 Discontinued operations (3) — (2 ) — 1,696 Net income attributable to the Company $ 19,380 $ 6,434 $ 38,822 $ 29,120 Assets $ 8,712,873 $ 8,716,203 $ 8,712,873 $ 8,716,203 Amortization of intangibles $ 672 $ 749 $ 1,344 $ 1,499 Depreciation $ 2,755 $ 2,561 $ 5,839 $ 4,663 _____________________ (1) Operating expense related to the Private Banking and Wealth Management & Trust segments includes restructuring expense for the six months ended June 30, 2019 of $1.3 million and $0.4 million , respectively. (2) The results of Anchor and BOS for the periods owned in 2018 are included in the results of the Affiliate Partners segment and the Company. (3) The Holding Company and Eliminations calculation of net income attributable to the Company includes net income from discontinued operations for the six months ended June 30, 2019 and 2018 of zero and $1.7 million , respectively. The Company received the final payment related to a revenue sharing agreement with Westfield Capital Management Company, LLC (“Westfield”) in the first quarter of 2018. The Company will not receive additional income from Westfield now that the final payment has been received. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Schedule of debt securities available-for-sale | The following table presents a summary of investment securities at June 30, 2019 and December 31, 2018 : Amortized Cost Unrealized Fair Value Gains Losses (In thousands) At June 30, 2019 Available-for-sale securities at fair value: U.S. government and agencies $ 20,047 $ 8 $ (114 ) $ 19,941 Government-sponsored entities 181,442 601 (65 ) 181,978 Municipal bonds 314,235 10,002 (92 ) 324,145 Mortgage-backed securities (1) 444,826 969 (5,128 ) 440,667 Total $ 960,550 $ 11,580 $ (5,399 ) $ 966,731 Held-to-maturity securities at amortized cost: Mortgage-backed securities (1) $ 54,482 $ 24 $ (577 ) $ 53,929 Total $ 54,482 $ 24 $ (577 ) $ 53,929 Equity securities at fair value: Money market mutual funds (2) $ 19,092 $ — $ — $ 19,092 Total $ 19,092 $ — $ — $ 19,092 At December 31, 2018 Available-for-sale securities at fair value: U.S. government and agencies $ 30,043 $ — $ (929 ) $ 29,114 Government-sponsored entities 211,655 — (3,952 ) 207,703 Municipal bonds 309,837 2,223 (3,101 ) 308,959 Mortgage-backed securities (1) 467,239 214 (19,164 ) 448,289 Total $ 1,018,774 $ 2,437 $ (27,146 ) $ 994,065 Held-to-maturity securities at amortized cost: U.S. government and agencies $ 9,898 $ 2 $ — $ 9,900 Mortgage-backed securities (1) 60,540 — (1,845 ) 58,695 Total $ 70,438 $ 2 $ (1,845 ) $ 68,595 Equity securities at fair value: Money market mutual funds (2) $ 14,228 $ — $ — $ 14,228 Total $ 14,228 $ — $ — $ 14,228 _____________________ (1) All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities. (2) Money market mutual funds maintain a constant net asset value of $1.00 and therefore have no unrealized gain or loss. |
Schedule of debt securities held-to-maturity | The following table presents a summary of investment securities at June 30, 2019 and December 31, 2018 : Amortized Cost Unrealized Fair Value Gains Losses (In thousands) At June 30, 2019 Available-for-sale securities at fair value: U.S. government and agencies $ 20,047 $ 8 $ (114 ) $ 19,941 Government-sponsored entities 181,442 601 (65 ) 181,978 Municipal bonds 314,235 10,002 (92 ) 324,145 Mortgage-backed securities (1) 444,826 969 (5,128 ) 440,667 Total $ 960,550 $ 11,580 $ (5,399 ) $ 966,731 Held-to-maturity securities at amortized cost: Mortgage-backed securities (1) $ 54,482 $ 24 $ (577 ) $ 53,929 Total $ 54,482 $ 24 $ (577 ) $ 53,929 Equity securities at fair value: Money market mutual funds (2) $ 19,092 $ — $ — $ 19,092 Total $ 19,092 $ — $ — $ 19,092 At December 31, 2018 Available-for-sale securities at fair value: U.S. government and agencies $ 30,043 $ — $ (929 ) $ 29,114 Government-sponsored entities 211,655 — (3,952 ) 207,703 Municipal bonds 309,837 2,223 (3,101 ) 308,959 Mortgage-backed securities (1) 467,239 214 (19,164 ) 448,289 Total $ 1,018,774 $ 2,437 $ (27,146 ) $ 994,065 Held-to-maturity securities at amortized cost: U.S. government and agencies $ 9,898 $ 2 $ — $ 9,900 Mortgage-backed securities (1) 60,540 — (1,845 ) 58,695 Total $ 70,438 $ 2 $ (1,845 ) $ 68,595 Equity securities at fair value: Money market mutual funds (2) $ 14,228 $ — $ — $ 14,228 Total $ 14,228 $ — $ — $ 14,228 _____________________ (1) All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities. (2) Money market mutual funds maintain a constant net asset value of $1.00 and therefore have no unrealized gain or loss. |
Investments classified by contractual maturity date | The following table presents the maturities of available-for-sale investment securities, based on contractual maturity, as of June 30, 2019 . Certain securities are callable before their final maturity. Additionally, certain securities (such as mortgage-backed securities) are shown within the table below based on their final (contractual) maturity, but due to prepayments and amortization are expected to have shorter lives. Available-for-sale Securities Amortized Cost Fair Value (In thousands) Within one year $ 43,131 $ 43,118 After one, but within five years 266,198 266,819 After five, but within ten years 284,020 285,133 Greater than ten years 367,201 371,661 Total $ 960,550 $ 966,731 The following table presents the maturities of held-to-maturity investment securities, based on contractual maturity, as of June 30, 2019 . Held-to-maturity Securities Amortized Cost Fair Value (In thousands) After five, but within ten years $ 44,565 $ 44,132 Greater than ten years 9,917 9,797 Total $ 54,482 $ 53,929 |
Realized gain (loss) on investments | The following table presents the proceeds from sales, gross realized gains and gross realized losses for available-for-sale securities that were sold or called during the following periods as well as changes in the fair value of equity securities as prescribed by ASC 321, Investment - Equity Securities . ASU 2016-01, Recognition and Measurements of Financial Assets and Financial Liabilities was adopted on January 1, 2018, at which time a cumulative effect adjustment of $339 thousand was recorded to reclassify the amount of accumulated unrealized gains related to equity securities from accumulated other comprehensive income to retained earnings. Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (In thousands) Proceeds from sales $ — $ 19,673 $ — $ 35,550 Realized gains — — — 7 Realized losses — — — (1 ) Change in unrealized gain/ (loss) on equity securities reflected in the consolidated statement of operations — 7 — (23 ) |
Schedule of unrealized loss on investments | The following tables present information regarding securities at June 30, 2019 and December 31, 2018 having temporary impairment, due to the fair values having declined below the amortized cost of the individual securities, and the time period that the investments have been temporarily impaired. Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses # of Securities (In thousands, except number of securities) June 30, 2019 Available-for-sale securities U.S. government and agencies $ — $ — $ 9,934 $ (114 ) $ 9,934 $ (114 ) 2 Government-sponsored entities — — 70,069 (65 ) 70,069 (65 ) 13 Municipal bonds 7,794 (12 ) 14,930 (80 ) 22,724 (92 ) 16 Mortgage-backed securities (1) (3) 54 — 353,127 (5,128 ) 353,181 (5,128 ) 89 Total $ 7,848 $ (12 ) $ 448,060 $ (5,387 ) $ 455,908 $ (5,399 ) 120 Held-to-maturity securities Mortgage-backed securities (1) $ — $ — $ 45,951 $ (577 ) $ 45,951 $ (577 ) 14 Total $ — $ — $ 45,951 $ (577 ) $ 45,951 $ (577 ) 14 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized # of (In thousands, except number of securities) December 31, 2018 Available-for-sale securities U.S. government and agencies $ — $ — $ 29,114 $ (929 ) $ 29,114 $ (929 ) 5 Government-sponsored entities — — 207,703 (3,952 ) 207,703 (3,952 ) 32 Municipal bonds 25,394 (128 ) 130,209 (2,973 ) 155,603 (3,101 ) 85 Mortgage-backed securities (1) 2,469 (11 ) 433,888 (19,153 ) 436,357 (19,164 ) 110 Total $ 27,863 $ (139 ) $ 800,914 $ (27,007 ) $ 828,777 $ (27,146 ) 232 Held-to-maturity securities Mortgage-backed securities (1) $ — $ — $ 58,695 $ (1,845 ) $ 58,695 $ (1,845 ) 16 Total $ — $ — $ 58,695 $ (1,845 ) $ 58,695 $ (1,845 ) 16 _____________________ (1) All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities. (3) The amount of unrealized losses less than 12 months rounds to zero. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value, assets and liabilities measured on recurring basis | The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall: As of June 30, 2019 Fair value measurements at reporting date using: Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In thousands) Assets: Available-for-sale securities: U.S. government and agencies $ 19,941 $ — $ 19,941 $ — Government-sponsored entities 181,978 — 181,978 — Municipal bonds 324,145 — 324,145 — Mortgage-backed securities 440,667 — 440,667 — Total available-for-sale securities 966,731 — 966,731 — Equity securities 19,092 19,092 — — Derivatives - interest rate customer swaps 33,835 — 33,835 — Derivatives - interest rate swaps 5 — 5 — Derivatives - risk participation agreement 12 — 12 — Trading securities held in the “rabbi trust” (1) 6,335 6,335 — — Liabilities: Derivatives - interest rate customer swaps $ 34,586 $ — $ 34,586 $ — Derivatives - risk participation agreement 272 — 272 — Deferred compensation “rabbi trust” (1) 6,335 6,335 — — Fair value measurements at reporting date using: As of December 31, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In thousands) Assets: Available-for-sale securities: U.S. government and agencies $ 29,114 $ — $ 29,114 $ — Government-sponsored entities 207,703 — 207,703 — Municipal bonds 308,959 — 308,959 — Mortgage-backed securities 448,289 — 448,289 — Total available-for-sale securities 994,065 — 994,065 — Equity securities 14,228 14,228 — — Derivatives - interest rate customer swaps 21,889 — 21,889 — Derivatives - interest rate swaps 553 — 553 — Derivatives - risk participation agreements 2 — 2 — Trading securities held in the “rabbi trust” (1) 6,839 6,839 — — Liabilities: Derivatives - interest rate customer swaps $ 22,385 $ — $ 22,385 $ — Derivatives - risk participation agreements 152 — 152 — Deferred compensation “rabbi trust” (1) 6,839 6,839 — — _____________________ (1) The Company has adopted a special trust for the Deferred Compensation Plan called a “rabbi trust”. The rabbi trust is an arrangement that is used to accumulate assets that may be used to fund the Company’s obligation to pay benefits under the Deferred Compensation Plan. To prevent immediate taxation to the executives who participate in the Deferred Compensation Plan, the amounts placed in the rabbi trust must remain subject to the claims of the Company’s creditors. The investments chosen by the participants in the Deferred Compensation Plan are mirrored by the rabbi trust as a way to minimize the earnings volatility of the Deferred Compensation Plan. |
Fair value, assets and liabilities measured on nonrecurring basis | The following tables present the Company’s assets and liabilities measured at fair value on a non-recurring basis during the periods ended June 30, 2019 and 2018, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall. As of June 30, 2019 Fair value measurements at reporting date using: Gain (losses) from fair value changes Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Three months ended June 30, 2019 Six months ended June 30, 2019 (In thousands) Assets: Impaired loans (1) $ 1,144 $ — $ — $ 1,144 $ 220 $ 592 _____________________ (1) Collateral-dependent impaired loans held as of June 30, 2019 that had write-downs in fair value or whose specific reserve changed during the six months ended June 30, 2019 . As of June 30, 2018 Fair value measurements at reporting date using: Gain (losses) from fair value changes Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Three months ended June 30, 2018 Six months ended June 30, 2018 (In thousands) Assets: Impaired loans (1) $ 3,051 $ — $ — $ 3,051 $ (711 ) $ (927 ) _____________________ (1) Collateral-dependent impaired loans held as of June 30, 2018 that had write-downs in fair value or whose specific reserve changed during the six months ended June 30, 2018 . |
Fair value, assets and liabilities measured on recurring and nonrecurring basis, valuation techniques | The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value: As of June 30, 2019 Fair Value Valuation Technique Unobservable Input Range of Inputs Utilized Weighted Average of Inputs Utilized (In thousands) Impaired Loans $ 1,144 Appraisals of Collateral Discount for costs to sell 0% - 5% 4% Appraisal adjustments —% —% As of June 30, 2018 Fair Value Valuation Technique Unobservable Input Range of Inputs Utilized Weighted Average of Inputs Utilized (In thousands) Impaired Loans $ 3,051 Appraisals of Collateral Discount for costs to sell 0% - 24% 9% Appraisal adjustments 0% - 20% 7% |
Fair value, by balance sheet grouping | The following tables present the carrying values and fair values of the Company’s financial instruments that are not measured at fair value on a recurring basis: As of June 30, 2019 Book Value Fair Value Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In thousands) FINANCIAL ASSETS: Cash and cash equivalents $ 65,756 $ 65,756 $ 65,756 $ — $ — Investment securities held-to-maturity 54,482 53,929 — 53,929 — Loans held for sale 3,640 3,713 — 3,713 — Loans, net 7,005,193 6,988,207 — — 6,988,207 Other financial assets 94,475 94,475 — 94,475 — FINANCIAL LIABILITIES: Deposits 6,437,963 6,437,827 — 6,437,827 — Securities sold under agreements to repurchase 62,372 62,372 — 62,372 — Federal funds purchased 135,000 135,000 — 135,000 — Federal Home Loan Bank borrowings 920,068 920,615 — 920,615 — Junior subordinated debentures 106,363 96,363 — — 96,363 Other financial liabilities 4,386 4,386 — 4,386 — As of December 31, 2018 Book Value Fair Value Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (In thousands) FINANCIAL ASSETS: Cash and cash equivalents $ 127,259 $ 127,259 $ 127,259 $ — $ — Investment securities held-to-maturity 70,438 68,595 — 68,595 — Loans held for sale 2,812 2,837 — 2,837 — Loans, net 6,817,846 6,734,216 — — 6,734,216 Other financial assets 78,730 78,730 — 78,730 — FINANCIAL LIABILITIES: Deposits 6,781,170 6,777,928 — 6,777,928 — Securities sold under agreements to repurchase 36,928 36,928 — 36,928 — Federal funds purchased 250,000 250,000 — 250,000 — Federal Home Loan Bank borrowings 420,144 417,092 — 417,092 — Junior subordinated debentures 106,363 96,363 — — 96,363 Other financial liabilities 2,001 2,001 — 2,001 — |
Loan Portfolio and Credit Qua_2
Loan Portfolio and Credit Quality (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of accounts, notes, loans and financing receivable | The following table presents a summary of the loan portfolio based on the portfolio segment as of the dates indicated: June 30, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 656,186 $ 623,037 Commercial tax-exempt 450,307 451,671 Total commercial and industrial 1,106,493 1,074,708 Commercial real estate 2,530,556 2,395,692 Construction and land 200,378 240,306 Residential 3,025,758 2,948,973 Home equity 89,930 90,421 Consumer and other 127,145 143,058 Total $ 7,080,260 $ 6,893,158 |
Schedule of financing receivables, non accrual status | The following table presents nonaccrual loans receivable by class of receivable as of the dates indicated: June 30, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 1,567 $ 2,554 Commercial tax-exempt — — Total commercial and industrial 1,567 2,554 Commercial real estate — 546 Residential 12,572 7,914 Home equity 3,004 3,031 Consumer and other 12 12 Total $ 17,155 $ 14,057 |
Past due financing receivables | The following tables show the payment status of loans receivable by class of receivable as of the dates indicated: June 30, 2019 Accruing Past Due Nonaccrual Loans 30-59 Days Past Due 60-89 Days Past Due Total Accruing Past Due Current 30-89 Days Past Due 90 Days or Greater Past Due Total Non-Accrual Loans Current Accruing Loans Total Loans Receivable (In thousands) Commercial and industrial $ 251 $ — $ 251 $ 1,194 $ 155 $ 218 $ 1,567 $ 654,368 $ 656,186 Commercial tax-exempt — — — — — — — 450,307 450,307 Commercial real estate 982 — 982 — — — — 2,529,574 2,530,556 Construction and land — — — — — — — 200,378 200,378 Residential (1) — 334 1,266 4,238 2,961 5,373 12,572 3,011,920 3,025,758 Home equity — — — 385 274 2,345 3,004 86,926 89,930 Consumer and other 867 — 867 7 — 5 12 126,266 127,145 Total $ 2,100 $ 334 $ 3,366 $ 5,824 $ 3,390 $ 7,941 $ 17,155 $ 7,059,739 $ 7,080,260 ___________________ (1) There was one residential loan that was 90+ days past due and accruing for $0.9 million . For this reason, the total accruing past due amount will not equal the sum of 30-59 days past due and 60-89 days past due. This loan was paid off in July 2019. December 31, 2018 Accruing Past Due Nonaccrual Loans 30-59 Days Past Due 60-89 Days Past Due Total Accruing Past Due Current 30-89 Days Past Due 90 Days or Greater Past Due Total Non-Accrual Loans Current Accruing Loans Total Loans Receivable (In thousands) Commercial and industrial $ 9,794 $ — $ 9,794 $ 979 $ — $ 1,575 $ 2,554 $ 610,689 $ 623,037 Commercial tax-exempt — — — — — — — 451,671 451,671 Commercial real estate — — — — — 546 546 2,395,146 2,395,692 Construction and land — — — — — — — 240,306 240,306 Residential 6,477 366 6,843 2,639 716 4,559 7,914 2,934,216 2,948,973 Home equity 252 350 602 — 48 2,983 3,031 86,788 90,421 Consumer and other 17 5,043 5,060 8 4 — 12 137,986 143,058 Total $ 16,540 $ 5,759 $ 22,299 $ 3,626 $ 768 $ 9,663 $ 14,057 $ 6,856,802 $ 6,893,158 |
Financing receivable credit quality indicators | The following tables present the loan portfolio’s credit risk profile by internally assigned grade and class of receivable as of the dates indicated: June 30, 2019 By Loan Grade or Nonaccrual Status Pass Special Mention Accruing Classified (1) Nonaccrual Loans Total (In thousands) Commercial and industrial $ 617,524 $ 14,058 $ 23,037 $ 1,567 $ 656,186 Commercial tax-exempt 443,577 2,679 4,051 — 450,307 Commercial real estate 2,452,821 53,940 23,795 — 2,530,556 Construction and land 200,378 — — — 200,378 Residential 3,010,186 — 3,000 12,572 3,025,758 Home equity 86,926 — — 3,004 89,930 Consumer and other 127,133 — — 12 127,145 Total $ 6,938,545 $ 70,677 $ 53,883 $ 17,155 $ 7,080,260 December 31, 2018 By Loan Grade or Nonaccrual Status Pass Special Accruing Nonaccrual Total (In thousands) Commercial and industrial $ 581,278 $ 16,213 $ 22,992 $ 2,554 $ 623,037 Commercial tax-exempt 444,835 2,785 4,051 — 451,671 Commercial real estate 2,314,223 53,871 27,052 546 2,395,692 Construction and land 234,647 5,659 — — 240,306 Residential 2,941,059 — — 7,914 2,948,973 Home equity 87,390 — — 3,031 90,421 Consumer and other 143,046 — — 12 143,058 Total $ 6,746,478 $ 78,528 $ 54,095 $ 14,057 $ 6,893,158 ______________________ (1) Accruing Classified includes both Substandard and Doubtful classifications. |
Impaired financing receivables | The following tables present, by class of receivable, the balance of impaired loans with and without a related allowance, the associated allowance for those impaired loans with a related allowance, and the total unpaid principal on impaired loans: As of and for the three and six months ended June 30, 2019 Recorded Investment (1) Unpaid Principal Balance Related Allowance QTD Average Recorded Investment YTD Average Recorded Investment QTD Interest Income Recognized while Impaired YTD Interest Income Recognized while Impaired (In thousands) With no related allowance recorded: Commercial and industrial $ 1,669 $ 2,616 n/a $ 1,520 $ 1,328 $ 10 $ 25 Commercial tax-exempt — — n/a — — — — Commercial real estate — — n/a — 78 — 256 Construction and land — — n/a — — — — Residential 15,127 15,387 n/a 14,079 12,605 103 240 Home equity 2,497 3,059 n/a 2,359 2,018 1 1 Consumer and other — — n/a — — — — Subtotal $ 19,293 $ 21,062 n/a 17,958 $ 16,029 114 $ 522 With an allowance recorded: Commercial and industrial $ 441 $ 441 $ 93 596 $ 1,036 4 $ 20 Commercial tax-exempt — — — — — — — Commercial real estate — — — — — — — Construction and land — — — — — — — Residential 778 778 74 733 752 6 13 Home equity 274 274 24 69 776 1 1 Consumer and other — — — — — — — Subtotal $ 1,493 $ 1,493 $ 191 $ 1,398 $ 2,564 $ 11 $ 34 Total: Commercial and industrial $ 2,110 $ 3,057 $ 93 $ 2,116 $ 2,364 $ 14 $ 45 Commercial tax-exempt — — — — — — — Commercial real estate — — — — 78 — 256 Construction and land — — — — — — — Residential 15,905 16,165 74 14,812 13,357 109 253 Home equity 2,771 3,333 24 2,428 2,794 2 2 Consumer and other — — — — — — — Total $ 20,786 $ 22,555 $ 191 $ 19,356 $ 18,593 $ 125 $ 556 _____________________ (1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal. As of and for the three and six months ended June 30, 2018 Recorded Investment (1) Unpaid Principal Balance Related Allowance QTD Average Recorded Investment YTD Average Recorded Investment QTD Interest Income Recognized while Impaired YTD Interest Income Recognized while Impaired (In thousands) With no related allowance recorded: Commercial and industrial $ 2,015 $ 2,954 n/a $ 2,048 $ 1,835 $ 14 $ 22 Commercial tax-exempt — — n/a — — — — Commercial real estate 2,932 4,695 n/a 2,939 2,460 25 50 Construction and land — — n/a 82 94 16 16 Residential 10,455 10,815 n/a 10,587 10,009 87 189 Home equity — — n/a 1,311 1,509 15 24 Consumer and other — — n/a — — — — Subtotal $ 15,402 $ 18,464 n/a $ 16,967 $ 15,907 $ 157 $ 301 With an allowance recorded: Commercial and industrial $ 303 $ 403 $ 134 $ 76 $ 147 $ — $ 2 Commercial tax-exempt — — — — — — — Commercial real estate 5,426 5,855 187 5,467 6,055 72 228 Construction and land — — — — — — — Residential 816 816 82 818 821 6 12 Home equity 1,769 1,769 597 469 284 — — Consumer and other — — — — 18 — 3 Subtotal $ 8,314 $ 8,843 $ 1,000 $ 6,830 $ 7,325 $ 78 $ 245 Total: Commercial and industrial $ 2,318 $ 3,357 $ 134 $ 2,124 $ 1,982 $ 14 $ 24 Commercial tax-exempt — — — — — — — Commercial real estate 8,358 10,550 187 8,406 8,515 97 278 Construction and land — — — 82 94 16 16 Residential 11,271 11,631 82 11,405 10,830 93 201 Home equity 1,769 1,769 597 1,780 1,793 15 24 Consumer and other — — — — 18 — 3 Total $ 23,716 $ 27,307 $ 1,000 $ 23,797 $ 23,232 $ 235 $ 546 _____________________ (1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal. As of and for the year ended December 31, 2018 Recorded Investment (1) Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized while Impaired (In thousands) With no related allowance recorded: Commercial and industrial $ 1,435 $ 2,397 n/a $ 1,614 $ 69 Commercial tax-exempt — — n/a — — Commercial real estate 546 900 n/a 2,002 1,544 Construction and land — — n/a 50 16 Residential 8,403 8,764 n/a 9,638 408 Home equity 990 990 n/a 1,041 24 Consumer and other — — n/a — — Subtotal $ 11,374 $ 13,051 n/a $ 14,345 $ 2,061 With an allowance recorded: Commercial and industrial $ 1,770 $ 1,972 $ 598 $ 631 $ 15 Commercial tax-exempt — — — — — Commercial real estate — — — 4,087 705 Construction and land — — — — — Residential 780 780 75 785 22 Home equity 1,719 1,719 562 959 11 Consumer and other — — — 10 3 Subtotal $ 4,269 $ 4,471 $ 1,235 $ 6,472 $ 756 Total: Commercial and industrial $ 3,205 $ 4,369 $ 598 $ 2,245 $ 84 Commercial tax-exempt — — — — — Commercial real estate 546 900 — 6,089 2,249 Construction and land — — — 50 16 Residential 9,183 9,544 75 10,423 430 Home equity 2,709 2,709 562 2,000 35 Consumer and other — — — 10 3 Total $ 15,643 $ 17,522 $ 1,235 $ 20,817 $ 2,817 _____________________ (1) |
Troubled debt restructurings on financing receivables | The following tables present the balance of TDRs that were restructured or defaulted during the periods indicated: As of and for the three months ended June 30, 2019 Restructured Current Quarter TDRs that defaulted in the Current Quarter that were restructured in prior twelve months # of Loans Pre- modification recorded investment Post- modification recorded investment # of Loans Post- modification recorded investment (In thousands, except number of loans) Commercial and industrial — $ — $ — — $ — Commercial tax exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential (1) 1 222 222 — — Home equity (1) 1 274 274 — — Consumer and other — — — — — Total 2 $ 496 $ 496 — $ — _____________________ (1) Represents the following type of concession: temporary reduction of interest rate. As of and for the six months ended June 30, 2019 Restructured Year to Date TDRs that defaulted in the Year to Date that were restructured in prior twelve months # of Loans Pre- modification recorded investment Post- modification recorded investment # of Loans Post- modification recorded investment (In thousands, except number of loans) Commercial and industrial 1 $ 179 $ 179 — $ — Commercial tax exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential 2 3,222 3,222 — — Home equity 1 274 274 — — Consumer and other — — — — — Total 4 $ 3,675 $ 3,675 — $ — As of and for the three and six months ended June 30, 2019 Extension of term Temporary rate reduction Payment deferral Combination of concessions (1) Total concessions # of Post- cation ment # of Post- # of Post- # of Post- # of Post- (Dollars in thousands) Commercial and industrial 1 $ 179 — $ — — $ — — $ — 1 $ 179 Commercial real estate — — — — — — — — — — Construction and land — — — — — — — — — — Residential — — 2 3,222 — — — — 2 3,222 Home equity — — 1 274 — — — — 1 274 Consumer and other — — — — — — — — — — As of and for the three and six months ended June 30, 2018 Restructured Current Quarter TDRs that defaulted in the Current Quarter that were restructured in prior twelve months # of Loans Pre- modification recorded investment Post- modification recorded investment # of Loans Post- modification recorded investment (Dollars in thousands) Commercial and industrial (1) 1 $ 100 $ 100 — $ — Commercial real estate — — — — — Construction and land — — — — — Residential — — — — — Home equity — — — — — Consumer and other — — — — — Total 1 $ 100 $ 100 — $ — ______________________ (1) Represents the following type of concession: extension of term. |
Loan participation amounts by loan type | The following table presents a summary of the loan participations serviced for others and loans serviced for others based on class of receivable as of the dates indicated: June 30, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 9,269 $ 8,024 Commercial tax-exempt 18,824 19,105 Commercial real estate 44,613 60,688 Construction and land 20,135 39,966 Total loan participations serviced for others $ 92,841 $ 127,783 Residential $ 30,394 $ 33,168 Total loans serviced for others $ 30,394 $ 33,168 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Allowance for credit losses on financing receivables | The following table presents a summary of the changes in the allowance for loan losses for the periods indicated: As of and for the three months ended June 30, As of and for the six months ended June 30, 2019 2018 2019 2018 (In thousands) Allowance for loan losses, beginning of period: Commercial and industrial $ 15,687 $ 11,443 $ 15,912 $ 11,735 Commercial real estate 41,813 46,116 41,934 46,820 Construction and land 5,353 4,533 6,022 4,949 Residential 10,057 9,896 10,026 9,773 Home equity 796 784 1,284 835 Consumer and other 108 126 134 630 Total allowance for loan losses, beginning of period 73,814 72,898 75,312 74,742 Loans charged-off: Commercial and industrial (195 ) (125 ) (195 ) (339 ) Commercial real estate — — — (135 ) Construction and land — — — — Residential — — — (16 ) Home equity — — (562 ) — Consumer and other — (15 ) (2 ) (39 ) Total charge-offs (195 ) (140 ) (759 ) (529 ) Recoveries on loans previously charged-off: Commercial and industrial 40 152 228 234 Commercial real estate 30 50 219 175 Construction and land — — — — Residential — 27 100 27 Home equity — — — 1 Consumer and other 15 24 30 156 Total recoveries 85 253 577 593 Provision/ (credit) for loan losses: Commercial and industrial 550 911 137 751 Commercial real estate 1,898 (983 ) 1,588 (1,677 ) Construction and land (573 ) 80 (1,242 ) (336 ) Residential (502 ) (119 ) (571 ) 20 Home equity 9 552 83 500 Consumer and other (19 ) 12 (58 ) (600 ) Total provision/(credit) for loan losses 1,363 453 (63 ) (1,342 ) As of and for the three months ended June 30, As of and for the six months ended June 30, 2019 2018 2019 2018 (In thousands) Allowance for loan losses, end of period: Commercial and industrial 16,082 12,381 16,082 12,381 Commercial real estate 43,741 45,183 43,741 45,183 Construction and land 4,780 4,613 4,780 4,613 Residential 9,555 9,804 9,555 9,804 Home equity 805 1,336 805 1,336 Consumer and other 104 147 104 147 Total allowance for loan losses, end of period $ 75,067 $ 73,464 $ 75,067 $ 73,464 |
Allowance by method of impairment analysis | The following tables present the Company’s allowance for loan losses and loan portfolio as of June 30, 2019 and December 31, 2018 by portfolio segment, disaggregated by method of impairment analysis. The Company had no loans acquired with deteriorated credit quality as of June 30, 2019 or December 31, 2018 . June 30, 2019 Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Recorded investment (loan balance) Allowance for loan losses Recorded investment (loan balance) Allowance for loan losses Recorded investment (loan balance) Allowance for loan losses (In thousands) Commercial and industrial $ 2,110 $ 93 $ 1,104,383 $ 15,989 $ 1,106,493 $ 16,082 Commercial real estate — — 2,530,556 43,741 2,530,556 43,741 Construction and land — — 200,378 4,780 200,378 4,780 Residential 15,905 74 3,009,853 9,481 3,025,758 9,555 Home equity 2,771 24 87,159 781 89,930 805 Consumer and other — — 127,145 104 127,145 104 Total $ 20,786 $ 191 $ 7,059,474 $ 74,876 $ 7,080,260 $ 75,067 December 31, 2018 Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Recorded investment (loan balance) Allowance for loan losses Recorded investment (loan balance) Allowance for loan losses Recorded investment (loan balance) Allowance for loan losses (In thousands) Commercial and industrial $ 3,205 $ 598 $ 1,071,503 $ 15,314 $ 1,074,708 $ 15,912 Commercial real estate 546 — 2,395,146 41,934 2,395,692 41,934 Construction and land — — 240,306 6,022 240,306 6,022 Residential 9,183 75 2,939,790 9,951 2,948,973 10,026 Home equity 2,709 562 87,712 722 90,421 1,284 Consumer and other — — 143,058 134 143,058 134 Total $ 15,643 $ 1,235 $ 6,877,515 $ 74,077 $ 6,893,158 $ 75,312 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments in statement of financial position | The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Asset derivatives Liability derivatives Asset derivatives Liability derivatives Balance sheet location Fair value (1) Balance sheet location Fair value (1) Balance sheet location Fair value (1) Balance sheet location Fair value (1) (In thousands) Derivatives designated as hedging instruments: Interest rate swaps Other assets $ 5 Other liabilities $ — Other assets $ 553 Other liabilities $ — Derivatives not designated as hedging instruments: Interest rate swaps Other assets 33,835 Other liabilities 34,586 Other assets 21,889 Other liabilities 22,385 Risk participation agreements Other assets 12 Other liabilities 272 Other assets 2 Other liabilities 152 Total $ 33,852 $ 34,858 $ 22,444 $ 22,537 _____________________ (1) For additional details, see Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 5: Fair Value Measurements”. |
Schedule of derivative instruments, gain (loss) in statement of financial performance | The following table presents the effect of the Company’s derivative financial instruments on accumulated other comprehensive income for the three and six months ended June 30, 2019 and 2018 : Derivatives in cash flow hedging relationships Amount of gain or (loss) recognized in OCI on derivatives Location of gain or (loss) reclassified from accumulated OCI into income Amount of gain or (loss) reclassified from accumulated OCI into income Three months ended June 30, Three months ended June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Interest rate swaps $ (9 ) $ 175 Interest expense $ 191 $ 263 Total $ (9 ) $ 175 $ 191 $ 263 Derivatives in cash Amount of gain or (loss) recognized in OCI on derivatives (1) Location of gain Amount of gain or (loss) reclassified from accumulated OCI into income Six months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (In thousands) (In thousands) Interest rate swaps $ (47 ) $ 1,011 Interest expense $ 502 $ 284 Total $ (47 ) $ 1,011 $ 502 $ 284 ____________________ (1) The guidance in ASU 2017-12 requires that amounts in accumulated other comprehensive income that are included in the assessment of effectiveness should be reclassified into earnings in the same period in which the hedged forecasted transactions impact earnings. Transition guidance for this ASU further states that upon adoption, previously recorded cumulative ineffectiveness for cash flow hedges existing at the adoption date be eliminated by means of a cumulative-effect adjustment to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the initial application date. There was a $5 thousand reclassification related to the adoption of ASU 2017-12 effective January 1, 2018. |
Schedule of derivative instruments, effect on other comprehensive income (loss) | The following table presents the effect of the Company’s derivative financial instruments in the consolidated statements of operations for the three and six months ended June 30, 2019 and 2018 : Location of gain or (loss) reclassified from accumulated OCI into income Amount of gain or Amount of gain or (loss) recognized in income on cash flow hedging relationships Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (In thousands) Total amounts of income and (expense) line items presented in the statement of operations in which the effects of fair value or cash flow hedges are recorded Interest expense $ 191 $ 263 $ 502 $ 284 The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships in ASC 815 Interest contracts - amount of gain or (loss) reclassified from accumulated other comprehensive income into income Interest expense $ 191 $ 263 $ 502 $ 284 |
Derivatives not designated as hedging instrument | The following table presents the effect of the Bank’s derivative financial instruments not designated as hedging instruments in the consolidated statement of operations for the three and six months ended June 30, 2019 and 2018 . Amount of gain or (loss), net, recognized in income on derivatives Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income on derivatives Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 (In thousands) Interest rate swaps Other income/ (expense) $ (64 ) $ (139 ) $ (255 ) $ (47 ) Risk participation agreements Other income/ (expense) (213 ) 47 (109 ) 213 Total $ (277 ) $ (92 ) $ (364 ) $ 166 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | The following table presents the components of income tax expense for continuing operations, discontinued operations, noncontrolling interests and the Company: Six months ended June 30, 2019 2018 (In thousands) Income from continuing operations: Income before income taxes $ 49,277 $ 52,867 Income tax expense 10,286 23,425 Net income from continuing operations $ 38,991 $ 29,442 Effective tax rate, continuing operations 20.9 % 44.3 % Income from discontinued operations: Income before income taxes $ — $ 2,388 Income tax expense 692 Net income from discontinued operations $ — $ 1,696 Effective tax rate, discontinued operations — % 29.0 % Less: Income attributable to noncontrolling interests: Income before income taxes $ 169 $ 2,018 Income tax expense — — Net income attributable to noncontrolling interests $ 169 $ 2,018 Effective tax rate, noncontrolling interests — % — % Income attributable to the Company Income before income taxes $ 49,108 $ 53,237 Income tax expense 10,286 24,117 Net income attributable to the Company $ 38,822 $ 29,120 Effective tax rate attributable to the Company 20.9 % 45.3 % |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Consolidation, less than wholly owned subsidiary, parent ownership interest, effects of changes, net | The following tables present a rollforward of the Company’s redeemable noncontrolling interests and noncontrolling interests for the periods indicated: Three months ended Six months ended June 30, 2019 June 30, 2019 Redeemable noncontrolling interests Redeemable noncontrolling interests (In thousands) Noncontrolling interests at beginning of period $ 662 $ 2,526 Net income attributable to noncontrolling interests 69 169 Distributions (69 ) (169 ) Purchases/ (sales) of ownership interests — 12 Amortization of equity compensation 9 26 Adjustments to fair value 1,115 (778 ) Noncontrolling interests at end of period $ 1,786 $ 1,786 Three months ended Six months ended June 30, 2018 June 30, 2018 Redeemable noncontrolling interests Noncontrolling interests Redeemable noncontrolling interests Noncontrolling interests (In thousands) Noncontrolling interests at beginning of period $ 16,322 $ 4,825 $ 17,461 $ 5,186 Net income attributable to noncontrolling interests 732 236 1,491 527 Distributions (712 ) (227 ) (1,449 ) (509 ) Purchases/ (sales) of ownership interests (6,520 ) (3,051 ) (6,353 ) (3,051 ) Amortization of equity compensation 126 — 248 161 Adjustments to fair value 799 213 (651 ) (318 ) Noncontrolling interests at end of period $ 10,747 $ 1,996 $ 10,747 $ 1,996 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Reclassification out of accumulated other comprehensive income | The following table presents a summary of the amounts reclassified from accumulated other comprehensive income/ (loss) for the three and six months ended June 30, 2019 and 2018 : Description of component of accumulated other comprehensive income/ (loss) Three months ended June 30, Six months ended June 30, Affected line item in Statement of Operations 2019 2018 2019 2018 (In thousands) (In thousands) Net realized gain/ (loss) on cash flow hedges: Hedges related to deposits and borrowings: Pre-tax gain/ (loss) $ 191 $ 263 $ 502 $ 284 Interest (expense) Tax (expense)/ benefit (55 ) (76 ) (146 ) (83 ) Income tax (expense)/ benefit Net $ 136 $ 187 $ 356 $ 201 Net income/ (loss) attributable to the Company Total reclassifications for the period, net of tax $ 136 $ 187 $ 356 $ 201 |
Schedule of accumulated other comprehensive income (loss) | On January 1, 2018, the Company elected to early adopt ASU No. 2017-12. As a result, the Company reclassified unrealized losses on cash flow hedges of $5 thousand from accumulated other comprehensive income/ (loss) to beginning retained earnings. On January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the Company reclassified unrealized gains on equity securities available-for-sale, net of tax, of $339 thousand from accumulated other comprehensive income/ (loss) to beginning retained earnings. Components of accumulated other comprehensive income/ (loss) Unrealized gain/ (loss) on securities available-for-sale Unrealized gain/ (loss) on cash flow hedges Unrealized gain/ (loss) on other Accumulated other comprehensive income/ (loss) (In thousands) Balance at December 31, 2017 $ (8,140 ) $ 332 $ (850 ) $ (8,658 ) Other comprehensive income/ (loss) before reclassifications (14,848 ) 712 1 (14,135 ) Reclassified from other comprehensive income/ (loss) — (201 ) — (201 ) Other comprehensive income/ (loss), net (14,848 ) 511 1 (14,336 ) Reclassification from the adoption of ASUs 2017-12 and 2016-01 $ (339 ) $ 5 $ — $ (334 ) Balance at June 30, 2018 $ (23,327 ) $ 848 $ (849 ) $ (23,328 ) Balance at December 31, 2018 $ (17,556 ) $ 391 $ (554 ) $ (17,719 ) Other comprehensive income/ (loss) before reclassifications 22,233 (33 ) — 22,200 Reclassified from other comprehensive income/ (loss) — (356 ) — (356 ) Other comprehensive income/ (loss), net 22,233 (389 ) — 21,844 Balance at June 30, 2019 $ 4,677 $ 2 $ (554 ) $ 4,125 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring activity | The following table presents a summary of the restructuring activity for the three and six months ended June 30, 2019 and 2018 : Severance Charges Other Associated Costs Total (In thousands) Accrued charges at December 31, 2018 $ 3,896 $ 790 $ 4,686 Cost incurred 1,646 — 1,646 Costs paid (1,986 ) — (1,986 ) Accrued charges at March 31, 2019 3,556 790 4,346 Costs paid (1,364 ) — (1,364 ) Accrued charges at June 30, 2019 $ 2,192 $ 790 $ 2,982 Accrued charges at December 31, 2017 $ 337 $ — $ 337 Costs paid (254 ) — (254 ) Accrued charges at March 31, 2018 83 — 83 Costs paid (83 ) — (83 ) Accrued charges at June 30, 2018 $ — $ — $ — |
Lease Accounting (Tables)
Lease Accounting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of lease cost | The following table presents information about the Company's leases as of the dates indicated. Three months ended June 30, Six months ended June 30, 2019 2019 (In thousands) Lease cost Operating lease cost $ 4,841 $ 9,526 Short-term lease cost/ (refunds) (3 ) 29 Variable lease cost 2 4 Less: Sublease income (28 ) (46 ) Total operating lease cost $ 4,812 $ 9,513 Six months ended June 30, (In thousands, except years and percentages) Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 10,002 ROU assets obtained in exchange for new operating lease liabilities $ 10,510 Weighted-average remaining lease term for operating leases 8.3 years Weighted-average discount rate for operating leases 3.4 % |
Schedule of minimum payment obligation | The Company is obligated for minimum payments under non-cancelable operating leases. In accordance with the terms of these leases, the Company is currently committed to minimum annual payments as follows as of June 30, 2019 : June 30, 2019 (In thousands) Remainder of 2019 $ 10,095 2020 20,224 2021 20,406 2022 20,360 2023 19,575 Thereafter 57,005 Total future minimum lease payments 147,665 Less: Amounts representing interest (20,925 ) Present value of net future minimum lease payments $ 126,740 |
Schedule of future minimum rental payments for operating leases | The following table presents the undiscounted future minimum lease payments under the Company’s operating leases as of December 31, 2018 : December 31, 2018 (In thousands) 2019 $ 20,053 2020 19,344 2021 19,064 2022 18,802 2023 16,552 Thereafter 41,412 Total $ 135,227 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)segmentaffiliatemarket | Jun. 30, 2018USD ($) | Dec. 31, 2017segment | Jan. 01, 2019USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Number of reportable segments | segment | 3 | 4 | ||
Purchases, adjustment, securities available for sale | $ 9,845 | $ 9,985 | ||
Sales, adjustment, securities available for sale | 0 | 24 | ||
Lease liabilities | 126,740 | |||
ROU assets | $ 110,880 | |||
Private Banking | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Number of geographic markets | market | 3 | |||
Affiliate Partners | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Number of consolidated entities | affiliate | 4 | |||
ASU 2016-02 | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Lease liabilities | $ 124,000 | |||
ROU assets | $ 108,000 | |||
Restatement Adjustment | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Purchases, adjustment, securities available for sale | (22,700) | |||
Sales, adjustment, securities available for sale | $ (35,500) |
Earnings Per Share Basic Earnin
Earnings Per Share Basic Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic earnings per share - Numerator: | ||||
Net income from continuing operations | $ 19,449 | $ 7,404 | $ 38,991 | $ 29,442 |
Less: Net income attributable to noncontrolling interests | 69 | 968 | 169 | 2,018 |
Net income from continuing operations attributable to the Company | 19,380 | 6,436 | 38,822 | 27,424 |
Decrease/ (increase) in noncontrolling interests’ redemption values | (816) | (408) | 741 | 438 |
Dividends on preferred stock | 0 | (3,116) | 0 | (3,985) |
Total adjustments to income attributable to common shareholders | (816) | (3,524) | 741 | (3,547) |
Net income from continuing operations attributable to common shareholders, treasury stock method | 18,564 | 2,912 | 39,563 | 23,877 |
Net income from discontinued operations | 0 | (2) | 0 | 1,696 |
Net income attributable to common shareholders, treasury stock method | $ 18,564 | $ 2,910 | $ 39,563 | $ 25,573 |
Basic earnings per share - Denominator: | ||||
Weighted average basic common shares outstanding (in shares) | 83,565,780 | 83,509,115 | 83,426,213 | 83,304,573 |
Per share data - Basic earnings per share from: | ||||
Continuing operations (in dollars per share) | $ 0.22 | $ 0.03 | $ 0.47 | $ 0.29 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.02 |
Total attributable to common shareholders (in dollars per share) | $ 0.22 | $ 0.03 | $ 0.47 | $ 0.31 |
Earnings Per Share Diluted Earn
Earnings Per Share Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Diluted earnings per share - Numerator: | ||||
Net income from continuing operations attributable to common shareholders, after assumed dilution | $ 18,564 | $ 2,912 | $ 39,563 | $ 23,877 |
Net income from discontinued operations | 0 | (2) | 0 | 1,696 |
Net income attributable to common shareholders, after assumed dilution | $ 18,564 | $ 2,910 | $ 39,563 | $ 25,573 |
Diluted earnings per share - Denominator: | ||||
Weighted average basic common shares outstanding (in shares) | 83,565,780 | 83,509,115 | 83,426,213 | 83,304,573 |
Dilutive effect of: | ||||
Time-based and market-based stock options, performance-based and time-based restricted stock, and performance-based and time-based restricted stock units, and other dilutive securities (in shares) | 483,192 | 1,076,049 | 609,837 | 1,112,938 |
Warrants to purchase common stock (in shares) | 0 | 828,411 | 0 | 804,463 |
Dilutive common shares (in shares) | 483,192 | 1,904,460 | 609,837 | 1,917,401 |
Weighted average diluted common shares outstanding (in shares) | 84,048,972 | 85,413,575 | 84,036,050 | 85,221,974 |
Per share data - Diluted earnings per share from: | ||||
Continuing operations (in dollars per share) | $ 0.22 | $ 0.03 | $ 0.47 | $ 0.28 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.02 |
Total attributable to common shareholders (in dollars per share) | 0.22 | 0.03 | 0.47 | 0.30 |
Dividends per share declared and paid on common stock (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.24 | $ 0.24 |
Earnings Per Share Securities E
Earnings Per Share Securities Excluded Due to Exercise Price Exceeding Average Price During Period (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Shares Excluded Due to Exercise Price Exceeding Average Price During Period [Line Items] | ||||
Total shares excluded due to exercise price exceeding the average market price of common shares during the period (in shares) | 750 | 16 | 820 | 136 |
Options, restricted stock, or other dilutive securities | ||||
Shares Excluded Due to Exercise Price Exceeding Average Price During Period [Line Items] | ||||
Total shares excluded due to exercise price exceeding the average market price of common shares during the period (in shares) | 750 | 16 | 820 | 136 |
Reportable Segments Narrative (
Reportable Segments Narrative (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019segmentmarket | Dec. 31, 2017segment | Jan. 01, 2018affiliate | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 3 | 4 | |
Number of segments combined | 2 | ||
Private Banking | |||
Segment Reporting Information [Line Items] | |||
Number of geographic markets | market | 3 | ||
Investment Managers Segment | |||
Segment Reporting Information [Line Items] | |||
Number of consolidated entities | affiliate | 2 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Net interest income | $ 57,460,000 | $ 57,545,000 | $ 115,798,000 | $ 114,928,000 | |
Fees and other income | 24,380,000 | 32,095,000 | 49,628,000 | 71,838,000 | |
Total revenues | 81,840,000 | 89,640,000 | 165,426,000 | 186,766,000 | |
Provision/ (credit) for loan losses | 1,363,000 | 453,000 | (63,000) | (1,342,000) | |
Operating expense | 55,659,000 | 64,384,000 | 116,212,000 | 135,241,000 | |
Income before income taxes | 24,818,000 | 24,803,000 | 49,277,000 | 52,867,000 | |
Income tax expense | 5,369,000 | 17,399,000 | 10,286,000 | 23,425,000 | |
Net income from continuing operations | 19,449,000 | 7,404,000 | 38,991,000 | 29,442,000 | |
Noncontrolling interests | 69,000 | 968,000 | 169,000 | 2,018,000 | |
Discontinued operations | 0 | (2,000) | 0 | 1,696,000 | |
Net income attributable to the Company | 19,380,000 | 6,434,000 | 38,822,000 | 29,120,000 | |
Assets | 8,712,873,000 | 8,716,203,000 | 8,712,873,000 | 8,716,203,000 | $ 8,494,625,000 |
Amortization of intangibles | 672,000 | 749,000 | 1,344,000 | 1,499,000 | |
Depreciation | 2,755,000 | 2,561,000 | 5,839,000 | 4,663,000 | |
Restructuring charges | 0 | 0 | 1,646,000 | 0 | |
Operating Segments | Private Banking | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 58,419,000 | 58,447,000 | 117,756,000 | 116,578,000 | |
Fees and other income | 2,804,000 | 2,825,000 | 6,062,000 | 5,300,000 | |
Total revenues | 61,223,000 | 61,272,000 | 123,818,000 | 121,878,000 | |
Provision/ (credit) for loan losses | 1,363,000 | 453,000 | (63,000) | (1,342,000) | |
Operating expense | 37,805,000 | 39,670,000 | 79,122,000 | 79,297,000 | |
Income before income taxes | 22,055,000 | 21,149,000 | 44,759,000 | 43,923,000 | |
Income tax expense | 4,878,000 | 3,981,000 | 9,308,000 | 8,594,000 | |
Net income from continuing operations | 17,177,000 | 17,168,000 | 35,451,000 | 35,329,000 | |
Net income attributable to the Company | 17,177,000 | 17,168,000 | 35,451,000 | 35,329,000 | |
Assets | 8,619,399,000 | 8,637,774,000 | 8,619,399,000 | 8,637,774,000 | |
Depreciation | 2,373,000 | 2,031,000 | 5,043,000 | 3,615,000 | |
Operating Segments | Wealth Management and Trust | |||||
Segment Reporting Information [Line Items] | |||||
Fees and other income | 10,815,000 | 11,293,000 | 21,776,000 | 23,567,000 | |
Operating expense | 9,438,000 | 11,058,000 | 19,681,000 | 21,752,000 | |
Income before income taxes | 1,377,000 | 235,000 | 2,095,000 | 1,815,000 | |
Income tax expense | 417,000 | 34,000 | 620,000 | 509,000 | |
Net income from continuing operations | 960,000 | 201,000 | 1,475,000 | 1,306,000 | |
Net income attributable to the Company | 960,000 | 201,000 | 1,475,000 | 1,306,000 | |
Assets | 89,659,000 | 73,202,000 | 89,659,000 | 73,202,000 | |
Amortization of intangibles | 672,000 | 701,000 | 1,344,000 | 1,402,000 | |
Depreciation | 252,000 | 334,000 | 539,000 | 655,000 | |
Operating Segments | Affiliate Partners | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 104,000 | 79,000 | 210,000 | 131,000 | |
Fees and other income | 10,596,000 | 17,951,000 | 21,411,000 | 42,898,000 | |
Total revenues | 10,700,000 | 18,030,000 | 21,621,000 | 43,029,000 | |
Operating expense | 7,070,000 | 12,347,000 | 14,543,000 | 31,408,000 | |
Income before income taxes | 3,630,000 | 5,683,000 | 7,078,000 | 11,621,000 | |
Income tax expense | 1,199,000 | 1,463,000 | 2,299,000 | 2,920,000 | |
Net income from continuing operations | 2,431,000 | 4,220,000 | 4,779,000 | 8,701,000 | |
Noncontrolling interests | 69,000 | 968,000 | 169,000 | 2,018,000 | |
Net income attributable to the Company | 2,362,000 | 3,252,000 | 4,610,000 | 6,683,000 | |
Assets | 71,466,000 | 83,364,000 | 71,466,000 | 83,364,000 | |
Amortization of intangibles | 0 | 48,000 | 0 | 97,000 | |
Depreciation | 130,000 | 196,000 | 257,000 | 393,000 | |
Holding Company and Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | (1,063,000) | (981,000) | (2,168,000) | (1,781,000) | |
Fees and other income | 165,000 | 26,000 | 379,000 | 73,000 | |
Total revenues | (898,000) | (955,000) | (1,789,000) | (1,708,000) | |
Operating expense | 1,346,000 | 1,309,000 | 2,866,000 | 2,784,000 | |
Income before income taxes | (2,244,000) | (2,264,000) | (4,655,000) | (4,492,000) | |
Income tax expense | (1,125,000) | 11,921,000 | (1,941,000) | 11,402,000 | |
Net income from continuing operations | (1,119,000) | (14,185,000) | (2,714,000) | (15,894,000) | |
Discontinued operations | 0 | (2,000) | 0 | 1,696,000 | |
Net income attributable to the Company | (1,119,000) | (14,187,000) | (2,714,000) | (14,198,000) | |
Assets | $ (67,651,000) | $ (78,137,000) | (67,651,000) | $ (78,137,000) | |
Interest expense | Operating Segments | Private Banking | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring charges | 1,300,000 | ||||
Interest expense | Operating Segments | Wealth Management and Trust | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring charges | $ 400,000 |
Investments Schedule of Availab
Investments Schedule of Available-for-sale and Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale securities at fair value: | ||
Amortized Cost | $ 960,550 | $ 1,018,774 |
Unrealized Gains | 11,580 | 2,437 |
Unrealized Losses | (5,399) | (27,146) |
Fair Value | 966,731 | 994,065 |
Held-to-maturity securities at amortized cost: | ||
Amortized Cost | 54,482 | 70,438 |
Unrealized Gains | 24 | 2 |
Unrealized Losses | (577) | (1,845) |
Fair Value | 53,929 | 68,595 |
Equity securities at fair value: | ||
Amortized Cost | 19,092 | 14,228 |
Fair Value | 19,092 | 14,228 |
U.S. government and agencies | ||
Available-for-sale securities at fair value: | ||
Amortized Cost | 20,047 | 30,043 |
Unrealized Gains | 8 | 0 |
Unrealized Losses | (114) | (929) |
Fair Value | 19,941 | 29,114 |
Held-to-maturity securities at amortized cost: | ||
Amortized Cost | 9,898 | |
Unrealized Gains | 2 | |
Unrealized Losses | 0 | |
Fair Value | 9,900 | |
Government-sponsored entities | ||
Available-for-sale securities at fair value: | ||
Amortized Cost | 181,442 | 211,655 |
Unrealized Gains | 601 | 0 |
Unrealized Losses | (65) | (3,952) |
Fair Value | 181,978 | 207,703 |
Municipal bonds | ||
Available-for-sale securities at fair value: | ||
Amortized Cost | 314,235 | 309,837 |
Unrealized Gains | 10,002 | 2,223 |
Unrealized Losses | (92) | (3,101) |
Fair Value | 324,145 | 308,959 |
Mortgage-backed securities | ||
Available-for-sale securities at fair value: | ||
Amortized Cost | 444,826 | 467,239 |
Unrealized Gains | 969 | 214 |
Unrealized Losses | (5,128) | (19,164) |
Fair Value | 440,667 | 448,289 |
Held-to-maturity securities at amortized cost: | ||
Amortized Cost | 54,482 | 60,540 |
Unrealized Gains | 24 | 0 |
Unrealized Losses | (577) | (1,845) |
Fair Value | 53,929 | 58,695 |
Money market mutual funds | ||
Equity securities at fair value: | ||
Amortized Cost | 19,092 | 14,228 |
Fair Value | $ 19,092 | $ 14,228 |
Investments Maturities of AFS S
Investments Maturities of AFS Securities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Amortized Cost | |
Within one year | $ 43,131 |
After one, but within five years | 266,198 |
After five, but within ten years | 284,020 |
Greater than ten years | 367,201 |
Total | 960,550 |
Fair Value | |
Within one year | 43,118 |
After one, but within five years | 266,819 |
After five, but within ten years | 285,133 |
Greater than ten years | 371,661 |
Total | $ 966,731 |
Investments Maturities of HTM S
Investments Maturities of HTM Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
After five, but within ten years | $ 44,565 | |
Greater than ten years | 9,917 | |
Amortized Cost | 54,482 | $ 70,438 |
Fair Value | ||
After five, but within ten years | 44,132 | |
Greater than ten years | 9,797 | |
Total | $ 53,929 | $ 68,595 |
Investments Realized Gains and
Investments Realized Gains and Losses from Sales of AFS Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2018 | Jan. 01, 2017 | ||
Gain (Loss) on Securities [Line Items] | |||||||
Proceeds from sales | $ 0 | $ 19,673 | $ 0 | $ 35,550 | |||
Realized gains | 0 | 0 | 0 | 7 | |||
Realized losses | 0 | 0 | 0 | (1) | |||
Change in unrealized gain/ (loss) on equity securities reflected in the consolidated statement of operations | $ 0 | $ 7 | $ 0 | $ (23) | |||
Retained Earnings | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Cumulative effect of new accounting principle in period of adoption | [1] | $ 334 | |||||
Retained Earnings | ASU 2016-01 | |||||||
Gain (Loss) on Securities [Line Items] | |||||||
Cumulative effect of new accounting principle in period of adoption | $ 339 | ||||||
[1] | Reclassification due to the adoption of ASU 2016-01 and ASU 2017-12. See Part I. Item 1. “Financial Statements and Supplementary Data - Note 15: Recent Accounting Pronouncements.” |
Investments Investment Securiti
Investments Investment Securities in Unrealized Loss Position (Details) $ in Thousands | Jun. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Fair Value | ||
Less than 12 months | $ 7,848 | $ 27,863 |
12 months or longer | 448,060 | 800,914 |
Total | 455,908 | 828,777 |
Unrealized Losses | ||
Less than 12 months | (12) | (139) |
12 months or longer | (5,387) | (27,007) |
Less than 12 months | $ (5,399) | $ (27,146) |
Number of securities | security | 120,000 | 232 |
Fair Value | ||
Less than 12 months | $ 0 | $ 0 |
12 months or longer | 45,951 | 58,695 |
Total | 45,951 | 58,695 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | (577) | (1,845) |
Total | $ (577) | $ (1,845) |
Number of securities | security | 14,000 | 16 |
U.S. government and agencies | ||
Fair Value | ||
Less than 12 months | $ 0 | $ 0 |
12 months or longer | 9,934 | 29,114 |
Total | 9,934 | 29,114 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | (114) | (929) |
Less than 12 months | $ (114) | $ (929) |
Number of securities | security | 2,000 | 5 |
Government-sponsored entities | ||
Fair Value | ||
Less than 12 months | $ 0 | $ 0 |
12 months or longer | 70,069 | 207,703 |
Total | 70,069 | 207,703 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | (65) | (3,952) |
Less than 12 months | $ (65) | $ (3,952) |
Number of securities | security | 13,000 | 32 |
Municipal bonds | ||
Fair Value | ||
Less than 12 months | $ 7,794 | $ 25,394 |
12 months or longer | 14,930 | 130,209 |
Total | 22,724 | 155,603 |
Unrealized Losses | ||
Less than 12 months | (12) | (128) |
12 months or longer | (80) | (2,973) |
Less than 12 months | $ (92) | $ (3,101) |
Number of securities | security | 16,000 | 85 |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | $ 54 | $ 2,469 |
12 months or longer | 353,127 | 433,888 |
Total | 353,181 | 436,357 |
Unrealized Losses | ||
Less than 12 months | 0 | (11) |
12 months or longer | (5,128) | (19,153) |
Less than 12 months | $ (5,128) | $ (19,164) |
Number of securities | security | 89,000 | 110 |
Fair Value | ||
Less than 12 months | $ 0 | $ 0 |
12 months or longer | 45,951 | 58,695 |
Total | 45,951 | 58,695 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | (577) | (1,845) |
Total | $ (577) | $ (1,845) |
Number of securities | security | 14,000 | 16 |
Investments Other Investment Di
Investments Other Investment Disclosures (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Amortization method qualified affordable housing project investments | $ 56.6 | $ 54.4 |
Fair Value Measurements Recurri
Fair Value Measurements Recurring Basis (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Available-for-sale securities: | $ 966,731,000 | $ 994,065,000 |
Equity securities | 19,092,000 | 14,228,000 |
U.S. government and agencies | ||
Assets: | ||
Available-for-sale securities: | 19,941,000 | 29,114,000 |
Government-sponsored entities | ||
Assets: | ||
Available-for-sale securities: | 181,978,000 | 207,703,000 |
Municipal bonds | ||
Assets: | ||
Available-for-sale securities: | 324,145,000 | 308,959,000 |
Mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities: | 440,667,000 | 448,289,000 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Available-for-sale securities: | 966,731,000 | 994,065,000 |
Trading securities held in the “rabbi trust” | 6,335,000 | 6,839,000 |
Liabilities: | ||
Deferred compensation “rabbi trust” | 6,335,000 | 6,839,000 |
Fair Value, Measurements, Recurring | U.S. government and agencies | ||
Assets: | ||
Available-for-sale securities: | 19,941,000 | 29,114,000 |
Fair Value, Measurements, Recurring | Government-sponsored entities | ||
Assets: | ||
Available-for-sale securities: | 181,978,000 | 207,703,000 |
Fair Value, Measurements, Recurring | Municipal bonds | ||
Assets: | ||
Available-for-sale securities: | 324,145,000 | 308,959,000 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities: | 440,667,000 | 448,289,000 |
Fair Value, Measurements, Recurring | Interest rate customer swaps | ||
Assets: | ||
Derivatives | 33,835,000 | 21,889,000 |
Liabilities: | ||
Derivatives | 34,586,000 | 22,385,000 |
Fair Value, Measurements, Recurring | Interest rate swaps | ||
Assets: | ||
Derivatives | 5,000 | 553,000 |
Fair Value, Measurements, Recurring | Risk participation agreements | ||
Assets: | ||
Derivatives | 12,000 | 2,000 |
Liabilities: | ||
Derivatives | 272,000 | 152,000 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Equity securities | 19,092,000 | 14,228,000 |
Trading securities held in the “rabbi trust” | 6,335,000 | 6,839,000 |
Liabilities: | ||
Deferred compensation “rabbi trust” | 6,335,000 | 6,839,000 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | U.S. government and agencies | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | Government-sponsored entities | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | Municipal bonds | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | Mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | Interest rate customer swaps | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | Interest rate swaps | ||
Assets: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | Risk participation agreements | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | ||
Assets: | ||
Available-for-sale securities: | 966,731,000 | 994,065,000 |
Equity securities | 0 | 0 |
Trading securities held in the “rabbi trust” | 0 | 0 |
Liabilities: | ||
Deferred compensation “rabbi trust” | 0 | 0 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | U.S. government and agencies | ||
Assets: | ||
Available-for-sale securities: | 19,941,000 | 29,114,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Government-sponsored entities | ||
Assets: | ||
Available-for-sale securities: | 181,978,000 | 207,703,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Municipal bonds | ||
Assets: | ||
Available-for-sale securities: | 324,145,000 | 308,959,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities: | 440,667,000 | 448,289,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Interest rate customer swaps | ||
Assets: | ||
Derivatives | 33,835,000 | 21,889,000 |
Liabilities: | ||
Derivatives | 34,586,000 | 22,385,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Interest rate swaps | ||
Assets: | ||
Derivatives | 5,000 | 553,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Risk participation agreements | ||
Assets: | ||
Derivatives | 12,000 | 2,000 |
Liabilities: | ||
Derivatives | 272,000 | 152,000 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Equity securities | 0 | 0 |
Trading securities held in the “rabbi trust” | 0 | 0 |
Liabilities: | ||
Deferred compensation “rabbi trust” | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | U.S. government and agencies | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Government-sponsored entities | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Municipal bonds | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Interest rate customer swaps | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Interest rate swaps | ||
Assets: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Risk participation agreements | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | $ 0 | $ 0 |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($)security |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities: | $ 966,731,000 | $ 994,065,000 |
Transfers of assets from Level 1 to Level 2, numbers of assets | security | 5 | |
Transfers of assets from Level 1 to Level 2, amount | $ 33,400,000 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities: | 966,731,000 | 994,065,000 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities: | 0 | 0 |
Assets value | $ 0 | $ 0 |
Fair Value Measurements Nonrecu
Fair Value Measurements Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Fair value measurements at reporting date using: | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets: Impaired loans | $ 6,988,207 | $ 6,988,207 | $ 6,734,216 | ||
Fair value measurements at reporting date using: | Quoted prices in active markets for identical assets (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets: Impaired loans | 0 | 0 | 0 | ||
Fair value measurements at reporting date using: | Significant other observable inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets: Impaired loans | 0 | 0 | 0 | ||
Fair value measurements at reporting date using: | Significant unobservable inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets: Impaired loans | 6,988,207 | 6,988,207 | $ 6,734,216 | ||
Fair value measurements at reporting date using: | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets: Impaired loans | 1,144 | $ 3,051 | 1,144 | $ 3,051 | |
Fair value measurements at reporting date using: | Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets: Impaired loans | 0 | 0 | 0 | 0 | |
Fair value measurements at reporting date using: | Fair Value, Measurements, Nonrecurring | Significant other observable inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets: Impaired loans | 0 | 0 | 0 | 0 | |
Fair value measurements at reporting date using: | Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets: Impaired loans | 1,144 | 3,051 | 1,144 | 3,051 | |
Gain (losses) from fair value changes | Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gain (losses) from fair value changes | $ 220 | $ (711) | $ 592 | $ (927) |
Fair Value Measurements Quantit
Fair Value Measurements Quantitative Information about Level 3 Non-Recurring Assets (Details) - Significant unobservable inputs (Level 3) - Fair Value, Measurements, Nonrecurring $ in Thousands | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) |
Substandard | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair Value | $ 1,144 | $ 3,051 |
Discount for costs to sell | Weighted Average of Inputs Utilized | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair Value, non-recurring basis, weighted average unobservable input | 0.04 | 0.09 |
Discount for costs to sell | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair Value, non-recurring basis, weighted average unobservable input | 0 | 0 |
Discount for costs to sell | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair Value, non-recurring basis, weighted average unobservable input | 0.05 | 0.24 |
Appraisal adjustments | Weighted Average of Inputs Utilized | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair Value, non-recurring basis, weighted average unobservable input | 0 | 0.07 |
Appraisal adjustments | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair Value, non-recurring basis, weighted average unobservable input | 0 | |
Appraisal adjustments | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair Value, non-recurring basis, weighted average unobservable input | 0.20 |
Fair Value Measurements Not Mea
Fair Value Measurements Not Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
FINANCIAL ASSETS: | ||
Investment securities held-to-maturity | $ 53,929 | $ 68,595 |
Book Value | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 65,756 | 127,259 |
Investment securities held-to-maturity | 54,482 | 70,438 |
Loans held for sale | 3,640 | 2,812 |
Loans, net | 7,005,193 | 6,817,846 |
Other financial assets | 94,475 | 78,730 |
FINANCIAL LIABILITIES: | ||
Deposits | 6,437,963 | 6,781,170 |
Securities sold under agreements to repurchase | 62,372 | 36,928 |
Federal funds purchased | 135,000 | 250,000 |
Federal Home Loan Bank borrowings | 920,068 | 420,144 |
Junior subordinated debentures | 106,363 | 106,363 |
Other financial liabilities | 4,386 | 2,001 |
Fair Value | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 65,756 | 127,259 |
Investment securities held-to-maturity | 53,929 | 68,595 |
Loans held for sale | 3,713 | 2,837 |
Loans, net | 6,988,207 | 6,734,216 |
Other financial assets | 94,475 | 78,730 |
FINANCIAL LIABILITIES: | ||
Deposits | 6,437,827 | 6,777,928 |
Securities sold under agreements to repurchase | 62,372 | 36,928 |
Federal funds purchased | 135,000 | 250,000 |
Federal Home Loan Bank borrowings | 920,615 | 417,092 |
Junior subordinated debentures | 96,363 | 96,363 |
Other financial liabilities | 4,386 | 2,001 |
Fair Value | Quoted prices in active markets for identical assets (Level 1) | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 65,756 | 127,259 |
Investment securities held-to-maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Other financial assets | 0 | 0 |
FINANCIAL LIABILITIES: | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Federal funds purchased | 0 | 0 |
Federal Home Loan Bank borrowings | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Other financial liabilities | 0 | 0 |
Fair Value | Significant other observable inputs (Level 2) | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities held-to-maturity | 53,929 | 68,595 |
Loans held for sale | 3,713 | 2,837 |
Loans, net | 0 | 0 |
Other financial assets | 94,475 | 78,730 |
FINANCIAL LIABILITIES: | ||
Deposits | 6,437,827 | 6,777,928 |
Securities sold under agreements to repurchase | 62,372 | 36,928 |
Federal funds purchased | 135,000 | 250,000 |
Federal Home Loan Bank borrowings | 920,615 | 417,092 |
Junior subordinated debentures | 0 | 0 |
Other financial liabilities | 4,386 | 2,001 |
Fair Value | Significant unobservable inputs (Level 3) | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities held-to-maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 6,988,207 | 6,734,216 |
Other financial assets | 0 | 0 |
FINANCIAL LIABILITIES: | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Federal funds purchased | 0 | 0 |
Federal Home Loan Bank borrowings | 0 | 0 |
Junior subordinated debentures | 96,363 | 96,363 |
Other financial liabilities | $ 0 | $ 0 |
Loan Portfolio and Credit Qua_3
Loan Portfolio and Credit Quality Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 7,080,260 | $ 6,893,158 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 656,186 | 623,037 |
Commercial tax-exempt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 450,307 | 451,671 |
Total commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,106,493 | 1,074,708 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,530,556 | 2,395,692 |
Construction and land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 200,378 | 240,306 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,025,758 | 2,948,973 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 89,930 | 90,421 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 127,145 | $ 143,058 |
Loan Portfolio and Credit Qua_4
Loan Portfolio and Credit Quality Nonaccrual Loans by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | $ 17,155 | $ 14,057 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | 1,567 | 2,554 |
Commercial tax-exempt | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | 0 | 0 |
Total commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | 1,567 | 2,554 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | 0 | 546 |
Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | 12,572 | 7,914 |
Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | 3,004 | 3,031 |
Consumer and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | $ 12 | $ 12 |
Loan Portfolio and Credit Qua_5
Loan Portfolio and Credit Quality Narrative (Details) $ in Millions | Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged in blanket lien agreement | $ 2,600 | $ 2,600 |
Loans pledged as collateral | 459.6 | 540 |
TDRs | 10.6 | 8 |
Deferred income | 8.4 | 8.5 |
Performing Financial Instruments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDRs | $ 6.9 | $ 3.8 |
Residential | 90 Days or Greater Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | loan | 1 | 0 |
Loan Portfolio and Credit Qua_6
Loan Portfolio and Credit Quality Loans by Past Due Status (Details) $ in Thousands | Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan |
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | $ 3,366 | $ 22,299 |
Nonaccrual Loans | 17,155 | 14,057 |
Current Accruing Loans | 7,059,739 | 6,856,802 |
Total Loans Receivable | 7,080,260 | 6,893,158 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 2,100 | 16,540 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 334 | 5,759 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 5,824 | 3,626 |
30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 3,390 | 768 |
90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 7,941 | 9,663 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 251 | 9,794 |
Nonaccrual Loans | 1,567 | 2,554 |
Current Accruing Loans | 654,368 | 610,689 |
Total Loans Receivable | 656,186 | 623,037 |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 251 | 9,794 |
Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Commercial and industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 1,194 | 979 |
Commercial and industrial | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 155 | 0 |
Commercial and industrial | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 218 | 1,575 |
Commercial tax-exempt | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Nonaccrual Loans | 0 | 0 |
Current Accruing Loans | 450,307 | 451,671 |
Total Loans Receivable | 450,307 | 451,671 |
Commercial tax-exempt | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Commercial tax-exempt | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Commercial tax-exempt | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Commercial tax-exempt | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Commercial tax-exempt | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 982 | 0 |
Nonaccrual Loans | 0 | 546 |
Current Accruing Loans | 2,529,574 | 2,395,146 |
Total Loans Receivable | 2,530,556 | 2,395,692 |
Commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 982 | 0 |
Commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Commercial real estate | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Commercial real estate | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 546 |
Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Nonaccrual Loans | 0 | 0 |
Current Accruing Loans | 200,378 | 240,306 |
Total Loans Receivable | 200,378 | 240,306 |
Construction and land | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Construction and land | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Construction and land | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Construction and land | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Construction and land | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 1,266 | 6,843 |
Nonaccrual Loans | 12,572 | 7,914 |
Current Accruing Loans | 3,011,920 | 2,934,216 |
Total Loans Receivable | 3,025,758 | 2,948,973 |
Residential | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 6,477 |
Residential | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 334 | 366 |
Residential | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 4,238 | 2,639 |
Residential | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 2,961 | 716 |
Residential | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 900 | |
Nonaccrual Loans | $ 5,373 | $ 4,559 |
Number of loans | loan | 1 | 0 |
Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | $ 0 | $ 602 |
Nonaccrual Loans | 3,004 | 3,031 |
Current Accruing Loans | 86,926 | 86,788 |
Total Loans Receivable | 89,930 | 90,421 |
Home equity | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 252 |
Home equity | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 350 |
Home equity | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 385 | 0 |
Home equity | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 274 | 48 |
Home equity | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 2,345 | 2,983 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 867 | 5,060 |
Nonaccrual Loans | 12 | 12 |
Current Accruing Loans | 126,266 | 137,986 |
Total Loans Receivable | 127,145 | 143,058 |
Consumer and other | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 867 | 17 |
Consumer and other | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 5,043 |
Consumer and other | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 7 | 8 |
Consumer and other | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 4 |
Consumer and other | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 5 | $ 0 |
Loan Portfolio and Credit Qua_7
Loan Portfolio and Credit Quality Loans by Grade or Nonaccrual Status (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 7,080,260 | $ 6,893,158 |
Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 6,938,545 | 6,746,478 |
Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 70,677 | 78,528 |
Substandard | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 53,883 | 54,095 |
Substandard | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 17,155 | 14,057 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 656,186 | 623,037 |
Commercial and industrial | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 617,524 | 581,278 |
Commercial and industrial | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 14,058 | 16,213 |
Commercial and industrial | Substandard | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 23,037 | 22,992 |
Commercial and industrial | Substandard | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,567 | 2,554 |
Commercial tax-exempt | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 450,307 | 451,671 |
Commercial tax-exempt | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 443,577 | 444,835 |
Commercial tax-exempt | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,679 | 2,785 |
Commercial tax-exempt | Substandard | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 4,051 | 4,051 |
Commercial tax-exempt | Substandard | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,530,556 | 2,395,692 |
Commercial real estate | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,452,821 | 2,314,223 |
Commercial real estate | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 53,940 | 53,871 |
Commercial real estate | Substandard | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 23,795 | 27,052 |
Commercial real estate | Substandard | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 546 |
Construction and land | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 200,378 | 240,306 |
Construction and land | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 200,378 | 234,647 |
Construction and land | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 5,659 |
Construction and land | Substandard | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Construction and land | Substandard | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 3,025,758 | 2,948,973 |
Residential | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 3,010,186 | 2,941,059 |
Residential | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Residential | Substandard | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 3,000 | 0 |
Residential | Substandard | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 12,572 | 7,914 |
Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 89,930 | 90,421 |
Home equity | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 86,926 | 87,390 |
Home equity | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Home equity | Substandard | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Home equity | Substandard | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 3,004 | 3,031 |
Consumer and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 127,145 | 143,058 |
Consumer and other | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 127,133 | 143,046 |
Consumer and other | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Consumer and other | Substandard | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Consumer and other | Substandard | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 12 | $ 12 |
Loan Portfolio and Credit Qua_8
Loan Portfolio and Credit Quality Impaired Loans With and Without Related Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Recorded Investment | |||||
With no related allowance recorded: | $ 19,293 | $ 15,402 | $ 19,293 | $ 15,402 | $ 11,374 |
With an allowance recorded: | 1,493 | 8,314 | 1,493 | 8,314 | 4,269 |
Total: | 20,786 | 23,716 | 20,786 | 23,716 | 15,643 |
Unpaid Principal Balance | |||||
With no related allowance recorded: | 21,062 | 18,464 | 21,062 | 18,464 | 13,051 |
With an allowance recorded: | 1,493 | 8,843 | 1,493 | 8,843 | 4,471 |
Total: | 22,555 | 27,307 | 22,555 | 27,307 | 17,522 |
Related Allowance | 191 | 1,000 | 191 | 1,000 | 1,235 |
Average Recorded Investment | |||||
With no related allowance recorded: | 17,958 | 16,967 | 16,029 | 15,907 | 14,345 |
With an allowance recorded: | 1,398 | 6,830 | 2,564 | 7,325 | 6,472 |
Total: | 19,356 | 23,797 | 18,593 | 23,232 | 20,817 |
Interest Income Recognized while Impaired | |||||
With no related allowance recorded: | 114 | 157 | 522 | 301 | 2,061 |
With an allowance recorded: | 11 | 78 | 34 | 245 | 756 |
Total: | 125 | 235 | 556 | 546 | 2,817 |
Commercial and industrial | |||||
Recorded Investment | |||||
With no related allowance recorded: | 1,669 | 2,015 | 1,669 | 2,015 | 1,435 |
With an allowance recorded: | 441 | 303 | 441 | 303 | 1,770 |
Total: | 2,110 | 2,318 | 2,110 | 2,318 | 3,205 |
Unpaid Principal Balance | |||||
With no related allowance recorded: | 2,616 | 2,954 | 2,616 | 2,954 | 2,397 |
With an allowance recorded: | 441 | 403 | 441 | 403 | 1,972 |
Total: | 3,057 | 3,357 | 3,057 | 3,357 | 4,369 |
Related Allowance | 93 | 134 | 93 | 134 | 598 |
Average Recorded Investment | |||||
With no related allowance recorded: | 1,520 | 2,048 | 1,328 | 1,835 | 1,614 |
With an allowance recorded: | 596 | 76 | 1,036 | 147 | 631 |
Total: | 2,116 | 2,124 | 2,364 | 1,982 | 2,245 |
Interest Income Recognized while Impaired | |||||
With no related allowance recorded: | 10 | 14 | 25 | 22 | 69 |
With an allowance recorded: | 4 | 0 | 20 | 2 | 15 |
Total: | 14 | 14 | 45 | 24 | 84 |
Commercial tax-exempt | |||||
Recorded Investment | |||||
With no related allowance recorded: | 0 | 0 | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 | 0 | 0 |
Total: | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance | |||||
With no related allowance recorded: | 0 | 0 | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 | 0 | 0 |
Total: | 0 | 0 | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | |||||
With no related allowance recorded: | 0 | 0 | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 | 0 | 0 |
Total: | 0 | 0 | 0 | 0 | 0 |
Interest Income Recognized while Impaired | |||||
With no related allowance recorded: | 0 | 0 | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 | 0 | 0 |
Total: | 0 | 0 | 0 | 0 | 0 |
Commercial real estate | |||||
Recorded Investment | |||||
With no related allowance recorded: | 0 | 2,932 | 0 | 2,932 | 546 |
With an allowance recorded: | 0 | 5,426 | 0 | 5,426 | 0 |
Total: | 0 | 8,358 | 0 | 8,358 | 546 |
Unpaid Principal Balance | |||||
With no related allowance recorded: | 0 | 4,695 | 0 | 4,695 | 900 |
With an allowance recorded: | 0 | 5,855 | 0 | 5,855 | 0 |
Total: | 0 | 10,550 | 0 | 10,550 | 900 |
Related Allowance | 0 | 187 | 0 | 187 | 0 |
Average Recorded Investment | |||||
With no related allowance recorded: | 0 | 2,939 | 78 | 2,460 | 2,002 |
With an allowance recorded: | 0 | 5,467 | 0 | 6,055 | 4,087 |
Total: | 0 | 8,406 | 78 | 8,515 | 6,089 |
Interest Income Recognized while Impaired | |||||
With no related allowance recorded: | 0 | 25 | 256 | 50 | 1,544 |
With an allowance recorded: | 0 | 72 | 0 | 228 | 705 |
Total: | 0 | 97 | 256 | 278 | 2,249 |
Construction and land | |||||
Recorded Investment | |||||
With no related allowance recorded: | 0 | 0 | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 | 0 | 0 |
Total: | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance | |||||
With no related allowance recorded: | 0 | 0 | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 | 0 | 0 |
Total: | 0 | 0 | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | |||||
With no related allowance recorded: | 0 | 82 | 0 | 94 | 50 |
With an allowance recorded: | 0 | 0 | 0 | 0 | 0 |
Total: | 0 | 82 | 0 | 94 | 50 |
Interest Income Recognized while Impaired | |||||
With no related allowance recorded: | 0 | 16 | 0 | 16 | 16 |
With an allowance recorded: | 0 | 0 | 0 | 0 | 0 |
Total: | 0 | 16 | 0 | 16 | 16 |
Residential | |||||
Recorded Investment | |||||
With no related allowance recorded: | 15,127 | 10,455 | 15,127 | 10,455 | 8,403 |
With an allowance recorded: | 778 | 816 | 778 | 816 | 780 |
Total: | 15,905 | 11,271 | 15,905 | 11,271 | 9,183 |
Unpaid Principal Balance | |||||
With no related allowance recorded: | 15,387 | 10,815 | 15,387 | 10,815 | 8,764 |
With an allowance recorded: | 778 | 816 | 778 | 816 | 780 |
Total: | 16,165 | 11,631 | 16,165 | 11,631 | 9,544 |
Related Allowance | 74 | 82 | 74 | 82 | 75 |
Average Recorded Investment | |||||
With no related allowance recorded: | 14,079 | 10,587 | 12,605 | 10,009 | 9,638 |
With an allowance recorded: | 733 | 818 | 752 | 821 | 785 |
Total: | 14,812 | 11,405 | 13,357 | 10,830 | 10,423 |
Interest Income Recognized while Impaired | |||||
With no related allowance recorded: | 103 | 87 | 240 | 189 | 408 |
With an allowance recorded: | 6 | 6 | 13 | 12 | 22 |
Total: | 109 | 93 | 253 | 201 | 430 |
Home equity | |||||
Recorded Investment | |||||
With no related allowance recorded: | 2,497 | 0 | 2,497 | 0 | 990 |
With an allowance recorded: | 274 | 1,769 | 274 | 1,769 | 1,719 |
Total: | 2,771 | 1,769 | 2,771 | 1,769 | 2,709 |
Unpaid Principal Balance | |||||
With no related allowance recorded: | 3,059 | 0 | 3,059 | 0 | 990 |
With an allowance recorded: | 274 | 1,769 | 274 | 1,769 | 1,719 |
Total: | 3,333 | 1,769 | 3,333 | 1,769 | 2,709 |
Related Allowance | 24 | 597 | 24 | 597 | 562 |
Average Recorded Investment | |||||
With no related allowance recorded: | 2,359 | 1,311 | 2,018 | 1,509 | 1,041 |
With an allowance recorded: | 69 | 469 | 776 | 284 | 959 |
Total: | 2,428 | 1,780 | 2,794 | 1,793 | 2,000 |
Interest Income Recognized while Impaired | |||||
With no related allowance recorded: | 1 | 15 | 1 | 24 | 24 |
With an allowance recorded: | 1 | 0 | 1 | 0 | 11 |
Total: | 2 | 15 | 2 | 24 | 35 |
Consumer and other | |||||
Recorded Investment | |||||
With no related allowance recorded: | 0 | 0 | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 | 0 | 0 |
Total: | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance | |||||
With no related allowance recorded: | 0 | 0 | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 | 0 | 0 |
Total: | 0 | 0 | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | |||||
With no related allowance recorded: | 0 | 0 | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 | 18 | 10 |
Total: | 0 | 0 | 0 | 18 | 10 |
Interest Income Recognized while Impaired | |||||
With no related allowance recorded: | 0 | 0 | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 | 3 | 3 |
Total: | $ 0 | $ 0 | $ 0 | $ 3 | $ 3 |
Loan Portfolio and Credit Qua_9
Loan Portfolio and Credit Quality Loans Restructured (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 2 | 4 | ||
Restructuring Current Quarter, Pre-modification recorded investment | $ 496 | $ 3,675 | ||
Restructuring Current Quarter, Post-modification recorded investment | $ 496 | $ 3,675 | ||
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Number of Loans | loan | 0 | 0 | ||
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 | ||
Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | 1 | 1 | 1 |
Restructuring Current Quarter, Pre-modification recorded investment | $ 0 | $ 100 | $ 179 | $ 100 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 100 | $ 179 | $ 100 |
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Number of Loans | loan | 0 | 0 | 0 | 0 |
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial tax-exempt | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 | 0 | 0 |
Restructuring Current Quarter, Pre-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Number of Loans | loan | 0 | 0 | 0 | 0 |
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 | 0 | 0 |
Restructuring Current Quarter, Pre-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Number of Loans | loan | 0 | 0 | 0 | 0 |
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Construction and land | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 | 0 | 0 |
Restructuring Current Quarter, Pre-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Number of Loans | loan | 0 | 0 | 0 | 0 |
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Residential | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 1 | 0 | 2 | 0 |
Restructuring Current Quarter, Pre-modification recorded investment | $ 222 | $ 0 | $ 3,222 | $ 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 222 | $ 0 | $ 3,222 | $ 0 |
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Number of Loans | loan | 0 | 0 | 0 | 0 |
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Home equity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 1 | 0 | 1 | 0 |
Restructuring Current Quarter, Pre-modification recorded investment | $ 274 | $ 0 | $ 274 | $ 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 274 | $ 0 | $ 274 | $ 0 |
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Number of Loans | loan | 0 | 0 | 0 | 0 |
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer and other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 | 0 | 1 |
Restructuring Current Quarter, Pre-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 100 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 100 |
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Number of Loans | loan | 0 | 0 | 0 | 0 |
TDRs that defaulted in the Current Quarter that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Extension of term | Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 1 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 179 | |||
Extension of term | Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Extension of term | Construction and land | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Extension of term | Residential | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Extension of term | Home equity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Extension of term | Consumer and other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Temporary rate reduction | Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Temporary rate reduction | Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Temporary rate reduction | Construction and land | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Temporary rate reduction | Residential | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 2 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 3,222 | |||
Temporary rate reduction | Home equity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 1 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 274 | |||
Temporary rate reduction | Consumer and other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Payment deferral | Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Payment deferral | Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Payment deferral | Construction and land | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Payment deferral | Residential | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Payment deferral | Home equity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Payment deferral | Consumer and other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Combination Of Concessions | Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Combination Of Concessions | Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Combination Of Concessions | Construction and land | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Combination Of Concessions | Residential | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Combination Of Concessions | Home equity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |||
Combination Of Concessions | Consumer and other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructuring Current Quarter, Number of Loans | loan | 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 |
Loan Portfolio and Credit Qu_10
Loan Portfolio and Credit Quality Loan Participation Amounts (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Total loan participations serviced for others | $ 92,841 | $ 127,783 |
Total loans serviced for others | 30,394 | 33,168 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Total loan participations serviced for others | 9,269 | 8,024 |
Commercial tax-exempt | ||
Financing Receivable, Impaired [Line Items] | ||
Total loan participations serviced for others | 18,824 | 19,105 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Total loan participations serviced for others | 44,613 | 60,688 |
Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Total loan participations serviced for others | 20,135 | 39,966 |
Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans serviced for others | $ 30,394 | $ 33,168 |
Allowance for Loan Losses Narra
Allowance for Loan Losses Narrative (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for loans losses | $ 75,067,000 | $ 73,814,000 | $ 75,312,000 | $ 73,464,000 | $ 72,898,000 | $ 74,742,000 |
Loans with deteriorated credit quality | 7,080,260,000 | 6,893,158,000 | ||||
Financial Asset Acquired with Credit Deterioration | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans with deteriorated credit quality | $ 0 | $ 0 |
Allowance for Loan Losses Allow
Allowance for Loan Losses Allowance Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | $ 73,814 | $ 72,898 | $ 75,312 | $ 74,742 |
Loans charged-off: | (195) | (140) | (759) | (529) |
Recoveries on loans previously charged-off: | 85 | 253 | 577 | 593 |
Provision/ (credit) for loan losses | 1,363 | 453 | (63) | (1,342) |
Allowance for loan losses, end of period: | 75,067 | 73,464 | 75,067 | 73,464 |
Commercial and industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 15,687 | 11,443 | 15,912 | 11,735 |
Loans charged-off: | (195) | (125) | (195) | (339) |
Recoveries on loans previously charged-off: | 40 | 152 | 228 | 234 |
Provision/ (credit) for loan losses | 550 | 911 | 137 | 751 |
Allowance for loan losses, end of period: | 16,082 | 12,381 | 16,082 | 12,381 |
Commercial real estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 41,813 | 46,116 | 41,934 | 46,820 |
Loans charged-off: | 0 | 0 | 0 | (135) |
Recoveries on loans previously charged-off: | 30 | 50 | 219 | 175 |
Provision/ (credit) for loan losses | 1,898 | (983) | 1,588 | (1,677) |
Allowance for loan losses, end of period: | 43,741 | 45,183 | 43,741 | 45,183 |
Construction and land | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 5,353 | 4,533 | 6,022 | 4,949 |
Loans charged-off: | 0 | 0 | 0 | 0 |
Recoveries on loans previously charged-off: | 0 | 0 | 0 | 0 |
Provision/ (credit) for loan losses | (573) | 80 | (1,242) | (336) |
Allowance for loan losses, end of period: | 4,780 | 4,613 | 4,780 | 4,613 |
Residential | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 10,057 | 9,896 | 10,026 | 9,773 |
Loans charged-off: | 0 | 0 | 0 | (16) |
Recoveries on loans previously charged-off: | 0 | 27 | 100 | 27 |
Provision/ (credit) for loan losses | (502) | (119) | (571) | 20 |
Allowance for loan losses, end of period: | 9,555 | 9,804 | 9,555 | 9,804 |
Home equity | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 796 | 784 | 1,284 | 835 |
Loans charged-off: | 0 | 0 | (562) | 0 |
Recoveries on loans previously charged-off: | 0 | 0 | 0 | 1 |
Provision/ (credit) for loan losses | 9 | 552 | 83 | 500 |
Allowance for loan losses, end of period: | 805 | 1,336 | 805 | 1,336 |
Consumer and other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 108 | 126 | 134 | 630 |
Loans charged-off: | 0 | (15) | (2) | (39) |
Recoveries on loans previously charged-off: | 15 | 24 | 30 | 156 |
Provision/ (credit) for loan losses | (19) | 12 | (58) | (600) |
Allowance for loan losses, end of period: | $ 104 | $ 147 | $ 104 | $ 147 |
Allowance for Loan Losses All_2
Allowance for Loan Losses Allowance by impairment analysis method (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Impairment Recorded investment (loan balance) | $ 20,786 | $ 15,643 | ||||
Individually Evaluated for Impairment Allowance for loan losses | 191 | 1,235 | ||||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 7,059,474 | 6,877,515 | ||||
Collectively Evaluated for Impairment Allowance for loan losses | 74,876 | 74,077 | ||||
Total Loans Receivable | 7,080,260 | 6,893,158 | ||||
Allowance for loan losses | 75,067 | $ 73,814 | 75,312 | $ 73,464 | $ 72,898 | $ 74,742 |
Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 2,110 | 3,205 | ||||
Individually Evaluated for Impairment Allowance for loan losses | 93 | 598 | ||||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 1,104,383 | 1,071,503 | ||||
Collectively Evaluated for Impairment Allowance for loan losses | 15,989 | 15,314 | ||||
Total Loans Receivable | 1,106,493 | 1,074,708 | ||||
Allowance for loan losses | 16,082 | 15,687 | 15,912 | 12,381 | 11,443 | 11,735 |
Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 0 | 546 | ||||
Individually Evaluated for Impairment Allowance for loan losses | 0 | 0 | ||||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 2,530,556 | 2,395,146 | ||||
Collectively Evaluated for Impairment Allowance for loan losses | 43,741 | 41,934 | ||||
Total Loans Receivable | 2,530,556 | 2,395,692 | ||||
Allowance for loan losses | 43,741 | 41,813 | 41,934 | 45,183 | 46,116 | 46,820 |
Construction and land | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 0 | 0 | ||||
Individually Evaluated for Impairment Allowance for loan losses | 0 | 0 | ||||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 200,378 | 240,306 | ||||
Collectively Evaluated for Impairment Allowance for loan losses | 4,780 | 6,022 | ||||
Total Loans Receivable | 200,378 | 240,306 | ||||
Allowance for loan losses | 4,780 | 5,353 | 6,022 | 4,613 | 4,533 | 4,949 |
Residential | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 15,905 | 9,183 | ||||
Individually Evaluated for Impairment Allowance for loan losses | 74 | 75 | ||||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 3,009,853 | 2,939,790 | ||||
Collectively Evaluated for Impairment Allowance for loan losses | 9,481 | 9,951 | ||||
Total Loans Receivable | 3,025,758 | 2,948,973 | ||||
Allowance for loan losses | 9,555 | 10,057 | 10,026 | 9,804 | 9,896 | 9,773 |
Home equity | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 2,771 | 2,709 | ||||
Individually Evaluated for Impairment Allowance for loan losses | 24 | 562 | ||||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 87,159 | 87,712 | ||||
Collectively Evaluated for Impairment Allowance for loan losses | 781 | 722 | ||||
Total Loans Receivable | 89,930 | 90,421 | ||||
Allowance for loan losses | 805 | 796 | 1,284 | 1,336 | 784 | 835 |
Consumer and other | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 0 | 0 | ||||
Individually Evaluated for Impairment Allowance for loan losses | 0 | 0 | ||||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 127,145 | 143,058 | ||||
Collectively Evaluated for Impairment Allowance for loan losses | 104 | 134 | ||||
Total Loans Receivable | 127,145 | 143,058 | ||||
Allowance for loan losses | $ 104 | $ 108 | $ 134 | $ 147 | $ 126 | $ 630 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities Derivatives Fair Value and Balance Sheet Classification (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 33,852 | $ 22,444 |
Other assets | Derivatives designated as hedging instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 5 | 553 |
Other assets | Derivatives not designated as hedging instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 33,835 | 21,889 |
Other assets | Derivatives not designated as hedging instruments: | Risk participation agreements | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 12 | 2 |
Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 34,858 | 22,537 |
Other liabilities | Derivatives designated as hedging instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 0 | 0 |
Other liabilities | Derivatives not designated as hedging instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 34,586 | 22,385 |
Other liabilities | Derivatives not designated as hedging instruments: | Risk participation agreements | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 272 | $ 152 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities Effect of Derivative Instruments on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2018 | Jan. 01, 2017 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Amount of gain or (loss) recognized in OCI on derivatives | $ (9) | $ 175 | $ (47) | $ 1,011 | |||
Amount of gain or (loss) reclassified from accumulated OCI into income | 191 | 263 | 502 | 284 | |||
Interest rate swaps | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Amount of gain or (loss) recognized in OCI on derivatives | (9) | 175 | (47) | 1,011 | |||
Interest expense | Interest rate swaps | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Amount of gain or (loss) reclassified from accumulated OCI into income | $ 191 | $ 263 | $ 502 | $ 284 | |||
Accumulated Net Investment Gain (Loss) Attributable to Parent | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Cumulative effect of new accounting principle in period of adoption | [1] | $ 334 | |||||
ASU 2017-12 | Accumulated Net Investment Gain (Loss) Attributable to Parent | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Cumulative effect of new accounting principle in period of adoption | $ 5 | ||||||
[1] | Reclassification due to the adoption of ASU 2016-01 and ASU 2017-12. See Part I. Item 1. “Financial Statements and Supplementary Data - Note 15: Recent Accounting Pronouncements.” |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities Effect of Derivative Instruments on Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest rate swaps | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in income on cash flow hedging relationships | $ 191 | $ 263 | $ 502 | $ 284 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities Collateral With Counterparties (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Pledged securities value | $ 35.2 | |
Not Designated as Hedging Instrument | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative collateral | $ 33.1 | $ 2.2 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities Narrative Designated As Hedges (Details) - Designated as Hedging Instrument $ in Millions | 12 Months Ended | |
Dec. 31, 2013USD ($) | Jun. 30, 2019swap | |
Derivative [Line Items] | ||
Number of interest rate derivatives held | swap | 1 | |
Interest Rate Swaps 2013 | ||
Derivative [Line Items] | ||
Amount of hedged item | $ 25 | |
Bank $25m LIBOR Swap effective 8/1/13 | Interest rate swaps | Private Banking | ||
Derivative [Line Items] | ||
Notional amount | $ 25 | |
Derivative term | 6 years | |
Interest rate | 2.03% |
Derivatives and Hedging Activ_8
Derivatives and Hedging Activities Non-Designated Hedges (Details) - Not Designated as Hedging Instrument | Jun. 30, 2019USD ($)derivative_contract | Dec. 31, 2018USD ($)derivative_contract |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 1,400,000,000 | $ 1,300,000,000 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | 0 | 100,000 |
Risk participation agreements | ||
Derivative [Line Items] | ||
Notional amount | $ 59,400,000 | $ 59,800,000 |
Number of contracts | derivative_contract | 7 | 7 |
Other Contract | ||
Derivative [Line Items] | ||
Notional amount | $ 20,600,000 | $ 20,700,000 |
Number of contracts | derivative_contract | 4 | 4 |
Derivatives and Hedging Activ_9
Derivatives and Hedging Activities Derivatives not designated as hedges, effect on statement of operations (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total | $ (277) | $ (92) | $ (364) | $ 166 |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total | (64) | (139) | (255) | (47) |
Risk participation agreements | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total | $ (213) | $ 47 | $ (109) | $ 213 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income from continuing operations: | ||||
Income before income taxes | $ 24,818 | $ 24,803 | $ 49,277 | $ 52,867 |
Income tax expense | 5,369 | 17,399 | 10,286 | 23,425 |
Net income from continuing operations | 19,449 | 7,404 | $ 38,991 | $ 29,442 |
Effective tax rate, continuing operations | 20.90% | 44.30% | ||
Income from discontinued operations: | ||||
Income before income taxes | $ 0 | $ 2,388 | ||
Income tax expense | 692 | |||
Net income from discontinued operations | 0 | (2) | $ 0 | $ 1,696 |
Effective tax rate, discontinued operations | 0.00% | 29.00% | ||
Less: Income attributable to noncontrolling interests: | ||||
Net income attributable to noncontrolling interests | 69 | 968 | $ 169 | $ 2,018 |
Income tax expense | $ 0 | $ 0 | ||
Effective tax rate, noncontrolling interests | 0.00% | 0.00% | ||
Income attributable to the Company | ||||
Income before income taxes | $ 49,108 | $ 53,237 | ||
Income tax expense | 10,286 | 24,117 | ||
Net income attributable to the Company | $ 19,380 | $ 6,434 | $ 38,822 | $ 29,120 |
Effective tax rate attributable to the Company | 20.90% | 45.30% |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate, continuing operations | 20.90% | 44.30% | |||
Income tax expense | $ 5,369 | $ 17,399 | $ 10,286 | $ 23,425 | |
Tax expense on sale | $ 12,700 |
Noncontrolling Interests Narrat
Noncontrolling Interests Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |||||
Net income attributable to noncontrolling interests | $ 69,000 | $ 968,000 | $ 169,000 | $ 2,018,000 | |
Redeemable noncontrolling interests | 1,786,000 | 1,786,000 | $ 2,526,000 | ||
Noncontrolling interest included in permanent shareholders' equity | $ 0 | $ 0 | $ 0 |
Noncontrolling Interests Redeem
Noncontrolling Interests Redeemable Noncontrolling Interests Rollforward (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Redeemable noncontrolling interests at beginning of period | $ 2,526,000 | |||
Noncontrolling interests at beginning of period | 0 | |||
Net income attributable to noncontrolling interests | $ 69,000 | $ 968,000 | 169,000 | $ 2,018,000 |
Redeemable noncontrolling interests at end of period | 1,786,000 | 1,786,000 | ||
Noncontrolling interests at end of period | 0 | 0 | ||
Redeemable noncontrolling interests | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Redeemable noncontrolling interests at beginning of period | 662,000 | 16,322,000 | 2,526,000 | 17,461,000 |
Net income attributable to noncontrolling interests | 69,000 | 732,000 | 169,000 | 1,491,000 |
Distributions | (69,000) | (712,000) | (169,000) | (1,449,000) |
Purchases/ (sales) of ownership interests | 0 | (6,520,000) | 12,000 | (6,353,000) |
Amortization of equity compensation | 9,000 | 126,000 | 26,000 | 248,000 |
Adjustments to fair value | 1,115,000 | 799,000 | (778,000) | (651,000) |
Redeemable noncontrolling interests at end of period | $ 1,786,000 | 10,747,000 | $ 1,786,000 | 10,747,000 |
Noncontrolling interests | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Noncontrolling interests at beginning of period | 4,825,000 | 5,186,000 | ||
Net income attributable to noncontrolling interests | 236,000 | 527,000 | ||
Distributions | (227,000) | (509,000) | ||
Purchases/ (sales) of ownership interests | (3,051,000) | (3,051,000) | ||
Amortization of equity compensation | 0 | 161,000 | ||
Adjustments to fair value | 213,000 | (318,000) | ||
Noncontrolling interests at end of period | $ 1,996,000 | $ 1,996,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest (expense) | $ 21,268 | $ 14,010 | $ 39,754 | $ 24,983 |
Income tax (expense)/ benefit | 5,369 | 17,399 | 10,286 | 23,425 |
Net income/ (loss) attributable to the Company | (19,380) | (6,434) | (38,822) | (29,120) |
Hedges related to deposits and borrowings: | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total reclassifications for the period, net of tax | 356 | 201 | ||
Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total reclassifications for the period, net of tax | 136 | 187 | 356 | 201 |
Reclassification out of Accumulated Other Comprehensive Income | Hedges related to deposits and borrowings: | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest (expense) | 191 | 263 | 502 | 284 |
Income tax (expense)/ benefit | (55) | (76) | (146) | (83) |
Net income/ (loss) attributable to the Company | $ 136 | $ 187 | $ 356 | $ 201 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income Narrative (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Jan. 01, 2017 | |
Retained Earnings | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification due to change in accounting principles | [1] | $ 334 | |
Unrealized gain/ (loss) on cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification due to change in accounting principles | $ 5 | ||
Unrealized gain/ (loss) on securities available-for-sale | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification due to change in accounting principles | (339) | ||
ASU 2017-12 | Retained Earnings | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification due to change in accounting principles | 5 | ||
ASU 2017-12 | Unrealized gain/ (loss) on cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification due to change in accounting principles | (5) | ||
ASU 2016-01 | Retained Earnings | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification due to change in accounting principles | 339 | ||
ASU 2016-01 | Unrealized gain/ (loss) on securities available-for-sale | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification due to change in accounting principles | $ (339) | ||
[1] | Reclassification due to the adoption of ASU 2016-01 and ASU 2017-12. See Part I. Item 1. “Financial Statements and Supplementary Data - Note 15: Recent Accounting Pronouncements.” |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income Reclassification out of AOCI to RE (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2018 | Jan. 01, 2017 | [1] | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | $ 753,954 | $ 785,944 | |||
Ending Balance | 798,211 | 733,977 | |||
Unrealized gain/ (loss) on securities available-for-sale | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | (17,556) | (8,140) | |||
Other comprehensive income/ (loss) before reclassifications | 22,233 | (14,848) | |||
Reclassified from other comprehensive income/ (loss) | 0 | 0 | |||
Other comprehensive income/ (loss), net | 22,233 | (14,848) | |||
Reclassification from the adoption of ASUs 2017-12 and 2016-01 | $ (339) | ||||
Ending Balance | 4,677 | (23,327) | |||
Unrealized gain/ (loss) on cash flow hedges | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | 391 | 332 | |||
Other comprehensive income/ (loss) before reclassifications | (33) | 712 | |||
Reclassified from other comprehensive income/ (loss) | (356) | (201) | |||
Other comprehensive income/ (loss), net | (389) | 511 | |||
Reclassification from the adoption of ASUs 2017-12 and 2016-01 | 5 | ||||
Ending Balance | 2 | 848 | |||
Unrealized gain/ (loss) on other | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | (554) | (850) | |||
Other comprehensive income/ (loss) before reclassifications | 0 | 1 | |||
Reclassified from other comprehensive income/ (loss) | 0 | 0 | |||
Other comprehensive income/ (loss), net | 0 | 1 | |||
Reclassification from the adoption of ASUs 2017-12 and 2016-01 | 0 | ||||
Ending Balance | (554) | (849) | |||
Accumulated other comprehensive income/ (loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | (17,719) | (8,658) | |||
Other comprehensive income/ (loss) before reclassifications | 22,200 | (14,135) | |||
Reclassified from other comprehensive income/ (loss) | (356) | (201) | |||
Other comprehensive income/ (loss), net | 21,844 | (14,336) | |||
Reclassification from the adoption of ASUs 2017-12 and 2016-01 | $ (334) | $ (334) | |||
Ending Balance | $ 4,125 | $ (23,328) | |||
[1] | Reclassification due to the adoption of ASU 2016-01 and ASU 2017-12. See Part I. Item 1. “Financial Statements and Supplementary Data - Note 15: Recent Accounting Pronouncements.” |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring cost incurred | $ 1,646 | $ 2,100 | $ 5,800 | ||||
Reduction in workforce | 7.00% | ||||||
Restructuring Reserve [Roll Forward] | |||||||
Accrued Charges at beginning of period | $ 4,346 | 4,686 | 0 | $ 83 | $ 337 | $ 4,686 | |
Cost incurred | 1,646 | 2,100 | 5,800 | ||||
Costs paid | (1,364) | (1,986) | (83) | (254) | |||
Accrued Charges at end of period | 2,982 | 4,346 | 4,686 | 0 | 83 | 2,982 | |
Severance Charges | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring cost incurred | 1,646 | ||||||
Restructuring Reserve [Roll Forward] | |||||||
Accrued Charges at beginning of period | 3,556 | 3,896 | 0 | 83 | 337 | 3,896 | |
Cost incurred | 1,646 | ||||||
Costs paid | (1,364) | (1,986) | (83) | (254) | |||
Accrued Charges at end of period | 2,192 | 3,556 | 3,896 | 0 | 83 | 2,192 | |
Other Associated Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring cost incurred | 0 | ||||||
Restructuring Reserve [Roll Forward] | |||||||
Accrued Charges at beginning of period | 790 | 790 | $ 0 | 0 | 0 | 790 | |
Cost incurred | 0 | ||||||
Costs paid | 0 | 0 | 0 | 0 | |||
Accrued Charges at end of period | $ 790 | $ 790 | $ 790 | $ 0 | $ 0 | $ 790 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other banking fee income | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Other banking fee income | $ 0.6 | $ 1.1 | $ 1.3 | $ 2 |
Other liabilities | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Deferred revenue | $ 6.5 | $ 6.7 | $ 6.5 | $ 6.7 |
Lease Accounting Narrative (Det
Lease Accounting Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)lease | Jun. 30, 2018USD ($) | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease liabilities | $ 126,740 | |||
ROU assets | $ 110,880 | |||
Rent expense | $ 5,400 | $ 10,800 | ||
Building | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Number real estate leases for office locations | lease | 42 | |||
ASU 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease liabilities | $ 124,000 | |||
ROU assets | $ 108,000 |
Lease Accounting - Schedule of
Lease Accounting - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 4,841 | $ 9,526 |
Short-term lease cost/ (refunds) | (3) | 29 |
Variable lease cost | 2 | 4 |
Less: Sublease income | (28) | (46) |
Total operating lease cost | $ 4,812 | $ 9,513 |
Lease Accounting - Other Infor
Lease Accounting - Other Information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 10,002 |
ROU assets obtained in exchange for new operating lease liabilities | $ 10,510 |
Weighted-average remaining lease term for operating leases | 8 years 3 months 18 days |
Weighted-average discount rate for operating leases | 3.40% |
Lease Accounting - Schedule _2
Lease Accounting - Schedule of Minimum Lease Payments Due (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remainder of 2019 | $ 10,095 | |
2020 | 20,224 | |
2021 | 20,406 | |
2022 | 20,360 | |
2023 | 19,575 | |
Thereafter | 57,005 | |
Total future minimum lease payments | 147,665 | |
Less: Amounts representing interest | (20,925) | |
Present value of net future minimum lease payments | $ 126,740 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2019 | $ 20,053 | |
2020 | 19,344 | |
2021 | 19,064 | |
2022 | 18,802 | |
2023 | 16,552 | |
Thereafter | 41,412 | |
Total | $ 135,227 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Lease liabilities | $ 126,740 | $ 126,740 | |||||||
Right-of-use assets | 110,880 | 110,880 | |||||||
Unrealized gain/ (loss) on securities available-for-sale | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Reclassification due to change in accounting principles | $ (339) | ||||||||
Retained Earnings | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Reclassification due to change in accounting principles | [1] | $ 334 | |||||||
ASU 2016-01 | Unrealized gain/ (loss) on securities available-for-sale | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Reclassification due to change in accounting principles | (339) | ||||||||
ASU 2016-01 | Unrealized gain/ (loss) on securities available-for-sale | Reclassification out of Accumulated Other Comprehensive Income | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Reclassification due to change in accounting principles | (339) | ||||||||
ASU 2016-01 | Retained Earnings | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Reclassification due to change in accounting principles | 339 | ||||||||
ASU 2016-01 | Retained Earnings | Reclassification out of Accumulated Other Comprehensive Income | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Reclassification due to change in accounting principles | 339 | ||||||||
ASU 2016-02 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Lease liabilities | $ 124,000 | ||||||||
Right-of-use assets | $ 108,000 | ||||||||
ASU 2017-07 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Reclassification due to change in accounting principles | $ 339 | $ 145 | $ 540 | $ 280 | |||||
ASU 2017-12 | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Reclassification due to change in accounting principles | 5 | ||||||||
ASU 2017-12 | Retained Earnings | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Reclassification due to change in accounting principles | 5 | ||||||||
ASU 2017-12 | Retained Earnings | Reclassification out of Accumulated Other Comprehensive Income | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Reclassification due to change in accounting principles | $ (5) | ||||||||
ASU 2018-02 | Reclassification out of Accumulated Other Comprehensive Income | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Reclassification due to change in accounting principles | $ 1,500 | ||||||||
[1] | Reclassification due to the adoption of ASU 2016-01 and ASU 2017-12. See Part I. Item 1. “Financial Statements and Supplementary Data - Note 15: Recent Accounting Pronouncements.” |