Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 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, Postal Zip Code | 02109 | |
Entity Address, City or Town | Boston, | |
Entity Address, State or Province | MA | |
City Area Code | 617 | |
Local Phone Number | 912-1900 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | BPFH | |
Security Exchange Name | NASDAQ | |
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 | |
Entity Common Stock, Shares Outstanding | 83,242,001 | |
Entity Central Index Key | 0000821127 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 78,010 | $ 127,259 |
Investment securities available-for-sale (amortized cost of $922,112 and $1,018,774 at September 30, 2019 and December 31, 2018, respectively) | 935,538 | 994,065 |
Investment securities held-to-maturity (fair value of $51,015 and $68,595 at September 30, 2019 and December 31, 2018, respectively) | 51,379 | 70,438 |
Equity securities at fair value | 21,780 | 14,228 |
Stock in Federal Home Loan Bank and Federal Reserve Bank | 47,756 | 49,263 |
Loans held for sale | 6,658 | 2,812 |
Total loans | 7,067,151 | 6,893,158 |
Less: Allowance for loan losses | 75,359 | 75,312 |
Net loans | 6,991,792 | 6,817,846 |
Other real estate owned (“OREO”) | 0 | 401 |
Premises and equipment, net | 42,658 | 45,412 |
Goodwill | 57,607 | 57,607 |
Intangible assets, net | 10,622 | 12,227 |
Fees receivable | 5,007 | 5,101 |
Accrued interest receivable | 24,851 | 24,366 |
Deferred income taxes, net | 15,704 | 26,638 |
Right-of-use assets | 107,045 | |
Other assets | 294,537 | 246,962 |
Total assets | 8,690,944 | 8,494,625 |
Liabilities: | ||
Deposits | 6,658,242 | 6,781,170 |
Securities sold under agreements to repurchase | 48,860 | 36,928 |
Federal funds purchased | 230,000 | 250,000 |
Federal Home Loan Bank borrowings | 570,904 | 420,144 |
Junior subordinated debentures | 106,363 | 106,363 |
Lease liabilities | 122,799 | |
Other liabilities | 143,607 | 143,540 |
Total liabilities | 7,880,775 | 7,738,145 |
Redeemable Noncontrolling Interests | 1,481 | 2,526 |
Shareholders’ Equity: | ||
Common stock, $1.00 par value; authorized: 170,000,000 shares; issued and outstanding: 83,241,952 shares at September 30, 2019 and 83,655,651 shares at December 31, 2018 | 83,242 | 83,656 |
Additional paid-in capital | 599,877 | 600,196 |
Retained earnings | 116,210 | 87,821 |
Accumulated other comprehensive income/ (loss) | 9,359 | (17,719) |
Total shareholders’ equity | 808,688 | 753,954 |
Total liabilities, redeemable noncontrolling interests and shareholders’ equity | $ 8,690,944 | $ 8,494,625 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) Parentheticals - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Investment securities available-for-sale at amortized cost | $ 922,112 | $ 1,018,774 |
Investment securities held-to-maturity at fair value | $ 51,015 | $ 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) | 83,241,952 | 83,655,651 |
Common stock, shares, outstanding (in shares) | 83,241,952 | 83,655,651 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest and dividend income: | ||||
Loans | $ 71,036 | $ 68,254 | $ 212,912 | $ 193,231 |
Taxable investment securities | 938 | 1,510 | 3,244 | 4,521 |
Non-taxable investment securities | 1,924 | 1,779 | 5,726 | 5,261 |
Mortgage-backed securities | 2,622 | 2,941 | 8,225 | 9,168 |
Short-term investments and other | 1,084 | 1,617 | 3,049 | 3,831 |
Total interest and dividend income | 77,604 | 76,101 | 233,156 | 216,012 |
Interest expense: | ||||
Deposits | 15,487 | 11,487 | 44,060 | 26,376 |
Federal Home Loan Bank borrowings | 4,337 | 3,877 | 12,144 | 11,668 |
Junior subordinated debentures | 1,022 | 1,028 | 3,223 | 2,882 |
Repurchase agreements and other short-term borrowings | 605 | 68 | 1,778 | 517 |
Total interest expense | 21,451 | 16,460 | 61,205 | 41,443 |
Net interest income | 56,153 | 59,641 | 171,951 | 174,569 |
Provision/ (credit) for loan losses | 167 | (949) | 104 | (2,291) |
Net interest income after provision/ (credit) for loan losses | 55,986 | 60,590 | 171,847 | 176,860 |
Fees and other income: | ||||
Gain/ (loss) on sale of investments, net | 0 | 0 | 0 | (17) |
Gain/ (loss) on OREO, net | 0 | 0 | 91 | 0 |
Other | (29) | 722 | 936 | 1,245 |
Total fees and other income | 25,126 | 32,314 | 74,754 | 104,152 |
Operating expense: | ||||
Salaries and employee benefits | 31,684 | 38,944 | 100,116 | 125,461 |
Occupancy and equipment | 8,260 | 8,164 | 24,460 | 24,141 |
Information systems | 5,169 | 6,233 | 16,166 | 18,889 |
Professional services | 4,435 | 2,877 | 11,308 | 8,926 |
Marketing and business development | 1,403 | 1,710 | 4,422 | 5,373 |
Amortization of intangibles | 671 | 750 | 2,015 | 2,249 |
FDIC insurance | 59 | 674 | 1,304 | 2,126 |
Restructuring | 0 | 5,763 | 1,646 | 5,763 |
Other | 3,856 | 3,442 | 10,312 | 10,870 |
Total operating expense | 55,537 | 68,557 | 171,749 | 203,798 |
Income before income taxes | 25,575 | 24,347 | 74,852 | 77,214 |
Income tax expense | 5,517 | 5,461 | 15,803 | 28,886 |
Net income from continuing operations | 20,058 | 18,886 | 59,049 | 48,328 |
Net income from discontinued operations | 0 | 0 | 0 | 1,696 |
Net income before attribution to noncontrolling interests | 20,058 | 18,886 | 59,049 | 50,024 |
Less: Net income attributable to noncontrolling interests | 96 | 924 | 265 | 2,942 |
Net income attributable to the Company | 19,962 | 17,962 | 58,784 | 47,082 |
Adjustments to net income attributable to the Company to arrive at net income attributable to common shareholders | 304 | (829) | 1,045 | (4,376) |
Net income attributable to common shareholders, treasury stock method | $ 20,266 | $ 17,133 | $ 59,829 | $ 42,706 |
Basic earnings per share attributable to common shareholders: | ||||
From continuing operations (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.72 | $ 0.49 |
From discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.02 |
Total attributable to common shareholders (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.72 | $ 0.51 |
Weighted average basic common shares outstanding (in shares) | 83,631,403 | 84,017,284 | 83,495,361 | 83,544,754 |
Diluted earnings per share attributable to common shareholders: | ||||
From continuing operations (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.71 | $ 0.48 |
From discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.02 |
Total attributable to common shareholders (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.71 | $ 0.50 |
Weighted average diluted common shares outstanding (in shares) | 83,956,708 | 85,498,568 | 84,003,281 | 85,254,295 |
Wealth management and trust fees | ||||
Fees and other income: | ||||
Fees | $ 19,067 | $ 25,505 | $ 57,037 | $ 76,030 |
Investment management fees | ||||
Fees and other income: | ||||
Fees | 2,496 | 3,245 | 7,601 | 18,897 |
Other banking fee income | ||||
Fees and other income: | ||||
Fees | 2,658 | 2,775 | 8,024 | 7,793 |
Gain on sale of loans, net | ||||
Fees and other income: | ||||
Fees | $ 934 | $ 67 | $ 1,065 | $ 204 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income attributable to the Company | $ 19,962 | $ 17,962 | $ 58,784 | $ 47,082 |
Other comprehensive income/ (loss), net of tax: | ||||
Net unrealized gain/ (loss) on securities available-for-sale | 5,236 | (4,040) | 27,469 | (18,888) |
Unrealized gain/ (loss) on cash flow hedges | 2 | (138) | (31) | 574 |
Reclassification adjustment for net realized (gain)/ loss included in net income | (4) | (72) | (360) | (273) |
Net unrealized gain/ (loss) on cash flow hedges | (2) | (210) | (391) | 301 |
Net unrealized gain/ (loss) on other | 0 | 0 | 0 | 1 |
Other comprehensive income/ (loss), net of tax | 5,234 | (4,250) | 27,078 | (18,586) |
Total comprehensive income attributable to the Company, net | $ 25,196 | $ 13,712 | $ 85,862 | $ 28,496 |
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) | Non- controlling 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 | 47,082 | 47,082 | |||||
Other comprehensive income/ (loss), net | (18,586) | (18,586) | |||||
Dividends paid to common shareholders | (30,586) | (30,586) | |||||
Dividends paid to preferred shareholders | (1,738) | (1,738) | |||||
Net change in noncontrolling interests | (2,977) | (2,977) | |||||
Redemption of Series D preferred stock | (50,000) | (47,753) | (2,247) | ||||
Repurchase of shares of common stock | (1,905) | (137) | (1,768) | ||||
Net proceeds from issuance of: | |||||||
Net proceeds from issuance of common stock | 1,865 | 143 | 1,722 | ||||
Net proceeds from issuance of inventive stock grant shares canceled or forfeited and withheld for employee taxes | (1,952) | (253) | (1,699) | ||||
Exercise of warrants | 161 | 438 | (277) | ||||
Amortization of stock compensation and employee stock purchase plan | 5,131 | 5,131 | |||||
Stock options exercised | 1,661 | 204 | 1,457 | ||||
Other equity adjustments | 3,909 | 3,909 | |||||
Ending Balance at Sep. 30, 2018 | 738,009 | 0 | 84,603 | 614,157 | 64,618 | (27,578) | 2,209 |
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 | 58,784 | 58,784 | |||||
Other comprehensive income/ (loss), net | 27,078 | 27,078 | |||||
Dividends paid to common shareholders | (30,395) | (30,395) | |||||
Repurchase of shares of common stock | (7,193) | (678) | (6,515) | ||||
Net proceeds from issuance of: | |||||||
Net proceeds from issuance of common stock | 2,274 | 266 | 2,008 | ||||
Net proceeds from issuance of inventive stock grant shares canceled or forfeited and withheld for employee taxes | (605) | (83) | (522) | ||||
Amortization of stock compensation and employee stock purchase plan | 3,359 | 3,359 | |||||
Stock options exercised | 545 | 81 | 464 | ||||
Other equity adjustments | 887 | 887 | |||||
Ending Balance at Sep. 30, 2019 | $ 808,688 | $ 0 | $ 83,242 | $ 599,877 | $ 116,210 | $ 9,359 | $ 0 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) Parentheticals - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.36 | $ 0.36 |
Repurchase of common stock, number of common shares (in shares) | 678,165 | 137,114 |
Shares of common stock issued (in shares) | 265,937 | 142,738 |
Stock forfeited (in shares) | 9,377 | 132,964 |
Shares withheld for employee taxes (in shares) | 115,173 | 127,894 |
Incentive stock grant (in shares) | 42,004 | 7,355 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income attributable to the Company | $ 58,784 | $ 47,082 |
Adjustments to arrive at net income from continuing operations | ||
Net income attributable to noncontrolling interests | 265 | 2,942 |
Less: Net income from discontinued operations | 0 | (1,696) |
Net income from continuing operations | 59,049 | 48,328 |
Adjustments to reconcile net income from continuing operations to net cash provided by/ (used in) operating activities: | ||
Depreciation and amortization | 17,726 | 17,192 |
Net income attributable to noncontrolling interests | (265) | (2,942) |
Stock compensation, net of cancellations | 4,022 | 5,232 |
Provision/ (credit) for loan losses | 104 | (2,291) |
Loans originated for sale | (32,796) | (32,364) |
Proceeds from sale of loans held for sale | 29,176 | 33,935 |
Deferred income tax expense/ (benefit) | 432 | 8,548 |
Increase in right-of-use assets | 1,416 | 0 |
Increase in operating lease liabilities | (1,465) | 0 |
Net decrease/ (increase) in other operating activities | (36,916) | (14,348) |
Net cash provided by/ (used in) operating activities of continuing operations | 40,483 | 61,290 |
Net cash provided by/ (used in) operating activities of discontinued operations | 0 | 1,696 |
Net cash provided by/ (used in) operating activities | 40,483 | 62,986 |
Investment securities available-for-sale: | ||
Purchases | (24,977) | (25,204) |
Sales | 0 | 24 |
Maturities, calls, redemptions, and principal payments | 115,857 | 86,085 |
Investment securities held-to-maturity: | ||
Purchases | 0 | (11,876) |
Maturities, calls, and principal payments | 18,880 | 10,726 |
Equity securities at fair value: | ||
Purchases | (44,537) | (38,042) |
Sales | 36,985 | 51,757 |
(Investments)/ distributions in trusts, net | 357 | 1,252 |
Contingent considerations from divestitures | 3,254 | 0 |
(Purchase)/ redemption of Federal Home Loan Bank and Federal Reserve Bank stock | 1,507 | 11,246 |
Net increase in portfolio loans | (268,238) | (217,317) |
Proceeds from recoveries of loans previously charged-off | 887 | 1,578 |
Proceeds from sale of OREO | 492 | 0 |
Proceeds from sale of portfolio loans | 92,304 | 0 |
Capital expenditures | (5,795) | (18,349) |
Proceeds from sale of affiliate | 0 | 34,120 |
Net cash provided by/ (used in) investing activities | (73,024) | (114,000) |
Cash flows from financing activities: | ||
Net increase/ (decrease) in deposits | (122,928) | 258,477 |
Net increase/ (decrease) in securities sold under agreements to repurchase | 11,932 | 7,284 |
Net increase/ (decrease) in federal funds purchased | (20,000) | 90,000 |
Net increase/ (decrease) in short-term Federal Home Loan Bank borrowings | 110,000 | (230,000) |
Advances of long-term Federal Home Loan Bank borrowings | 340,000 | 91,444 |
Repayments of long-term Federal Home Loan Bank borrowings | (299,240) | (113,289) |
Redemption of Series D preferred stock | 0 | (50,000) |
Dividends paid to common shareholders | (30,395) | (30,586) |
Dividends paid to preferred shareholders | 0 | (1,738) |
Proceeds from warrant exercises | 0 | 161 |
Repurchase of common stock | (7,193) | (1,905) |
Proceeds from stock option exercises | 545 | 1,661 |
Proceeds from issuance of common stock | 2,274 | 1,865 |
Tax withholding for share based compensation awards | (1,268) | (2,053) |
Distributions paid to noncontrolling interests | (265) | (2,848) |
Other equity adjustments | (170) | 4,634 |
Net cash provided by/ (used in) financing activities | (16,708) | 23,107 |
Net increase/ (decrease) in cash and cash equivalents | (49,249) | (27,907) |
Cash and cash equivalents at beginning of year | 127,259 | 120,541 |
Cash and cash equivalents at end of period | 78,010 | 92,634 |
Supplemental disclosure of cash flow items: | ||
Cash paid for interest | 60,489 | 40,703 |
Cash paid for income taxes, (net of refunds received) | 18,122 | 18,898 |
Change in unrealized gain/ (loss) on available-for-sale securities, net of tax | 27,469 | (18,888) |
Change in unrealized gain/ (loss) on cash flow hedges, net of tax | (391) | 301 |
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 | $ (944) | $ (529) |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 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 two reportable segments: (i) Private Banking and (ii) Wealth Management and Trust. 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”), a registered investment adviser (“RIA”) and wholly-owned subsidiary of the Bank, and the trust operations of Boston Private Bank. The Wealth Management and Trust segment offers planning-based financial strategies, wealth management, family office, financial planning, tax planning, and trust services to individuals, families, institutions, and nonprofit institutions. On September 1, 2019, KLS Professional Advisors Group, LLC ("KLS") merged with and into Boston Private Wealth. The results of KLS were reported in a third reportable segment "Affiliate Partners" as further discussed below. The Wealth Management and Trust segment operates in New England, New York, Southeast Florida, the San Francisco Bay Area, and Southern California. Prior to the third quarter of 2019, the Company had three reportable segments: Affiliate Partners, Private Banking, and Wealth Management and Trust. For the first two quarters of 2019, the Affiliate Partners segment was comprised of two affiliates: KLS and Dalton, Greiner, Hartman, Maher & Co., LLC (“DGHM”), each of which are RIAs. Prior to the first quarter of 2019, the Affiliate Partners segment also included Anchor Capital Advisors, LLC (“Anchor”) and Bingham, Osborn & Scarborough, LLC (“BOS”). On April 13, 2018, the Company completed the sale of its ownership interest in Anchor. On December 3, 2018, the Company completed the sale of its ownership interest in BOS. With the integration of KLS into Boston Private Wealth, the Company reorganized the segment reporting structure to align with how the Company's financial performance and strategy is reviewed and managed. The results of KLS are now included in the results of Boston Private Wealth within the Wealth Management and Trust segment, and the results of DGHM are now included within the Holding Company and Eliminations for all periods presented. The results of Anchor and BOS for the periods owned are included in the Holding Company and Eliminations. 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. The Company conducts substantially all of its business through its two 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 Statement 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. With the integration of KLS into Boston Private Wealth and the related change to reportable segments, fee revenue from KLS is reported in Wealth management and trust fees for all periods on the Consolidated Statement of Operations, which was previously presented as Wealth advisory fees in prior periods. 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 $38.0 million of purchases and $51.8 million of sales for the nine months ended September 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 $124.1 million of lease liabilities and $108.5 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 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 material impact on the consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 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 nine months ended September 30, 2019 and 2018 . The following tables present the computations of basic and diluted EPS: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands, except share and per share data) Basic earnings per share - Numerator: Net income from continuing operations $ 20,058 $ 18,886 $ 59,049 $ 48,328 Less: Net income attributable to noncontrolling interests 96 924 265 2,942 Net income from continuing operations attributable to the Company 19,962 17,962 58,784 45,386 Decrease/ (increase) in noncontrolling interests’ redemption values (1) 304 (829 ) 1,045 (391 ) Dividends on preferred stock — — — (3,985 ) Total adjustments to income attributable to common shareholders 304 (829 ) 1,045 (4,376 ) Net income from continuing operations attributable to common shareholders, treasury stock method 20,266 17,133 59,829 41,010 Net income from discontinued operations — — — 1,696 Net income attributable to common shareholders, treasury stock method $ 20,266 $ 17,133 $ 59,829 $ 42,706 Basic earnings per share - Denominator: Weighted average basic common shares outstanding 83,631,403 84,017,284 83,495,361 83,544,754 Per share data - Basic earnings per share from: Continuing operations $ 0.24 $ 0.20 $ 0.72 $ 0.49 Discontinued operations $ — $ — $ — $ 0.02 Total attributable to common shareholders $ 0.24 $ 0.20 $ 0.72 $ 0.51 Three months ended September 30, Nine months ended September 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 $ 20,266 $ 17,133 $ 59,829 $ 41,010 Net income from discontinued operations — — — 1,696 Net income attributable to common shareholders, after assumed dilution $ 20,266 $ 17,133 $ 59,829 $ 42,706 Diluted earnings per share - Denominator: Weighted average basic common shares outstanding 83,631,403 84,017,284 83,495,361 83,544,754 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) 325,305 853,906 507,920 1,052,855 Warrants to purchase common stock — 627,378 — 656,686 Dilutive common shares 325,305 1,481,284 507,920 1,709,541 Weighted average diluted common shares outstanding (2) 83,956,708 85,498,568 84,003,281 85,254,295 Per share data - Diluted earnings per share from: Continuing operations $ 0.24 $ 0.20 $ 0.71 $ 0.48 Discontinued operations $ — $ — $ — $ 0.02 Total attributable to common shareholders $ 0.24 $ 0.20 $ 0.71 $ 0.50 Dividends per share declared and paid on common stock $ 0.12 $ 0.12 $ 0.36 $ 0.36 _____________________ (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 nine months ended September 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 September 30, Nine months ended September 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 808 408 760 226 Total shares excluded due to exercise price exceeding the average market price of common shares during the period 808 408 760 226 |
Reportable Segments
Reportable Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments Management Reporting The Company has two reportable segments: (i) Private Banking and (ii) Wealth Management and Trust, as well as the Parent Company (Boston Private Financial Holdings, Inc., the “Holding Company”) within Holding Company and Eliminations. The financial performance of the Company is managed and evaluated according to these two segments. Each segment is managed by a segment leader (“Segment Leader”) who has full authority and responsibility for the performance and the allocation of resources within their segment. The Company’s Chief Executive Officer (“CEO”) is the Company’s Chief Operating Decision Maker (“CODM”). The Segment Leader for Private Banking is the CEO of Boston Private Bank, who is also the Company’s CEO. The Bank’s banking operations are reported in the Private Banking segment. The Segment Leader for Wealth Management and Trust is the President of Private Banking, Wealth and Trust. The Segment Leader of Wealth Management and Trust reports to the CEO of the Company. The Segment Leaders have authority with respect to the allocation of capital within their respective segments, management oversight responsibility, performance assessments, and overall authority and accountability within their respective segment. The Company’s CODM communicates with the President of Private Banking, Wealth and Trust regarding profit and loss responsibility, strategic planning, priority setting and other matters. The Company’s Chief Financial Officer reviews all 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. On September 1, 2019, KLS merged into Boston Private Wealth. As a result, the results of KLS are included in the results of Boston Private Wealth within the Wealth Management and Trust segment for all periods presented. The Wealth Management and Trust segment offers planning-based financial strategies, wealth management, family office, financial planning, tax planning, and trust services to individuals, families, institutions, and nonprofit institutions. The Wealth Management and Trust segment operates in New England, New York, Southeast Florida, the San Francisco Bay Area, and Southern California. Changes to Segment Reporting The 2018 segment results have been adjusted for comparability to the 2019 segment results for the following changes. Prior to the third quarter of 2019, the Company had three reportable segments: Affiliate Partners, Private Banking, and Wealth Management and Trust. For the first two quarters of 2019, the Affiliate Partners segment was comprised of two affiliates: KLS and DGHM, each of which are RIAs. Prior to the first quarter of 2019, the Affiliate Partners segment also included Anchor and BOS for the periods owned. On April 13, 2018, the Company completed the sale of its ownership interest in Anchor. On December 3, 2018, the Company completed the sale of its ownership interest in BOS. With the integration of KLS into Boston Private Wealth in the third quarter of 2019, the Company reorganized the segment reporting structure to align with how the Company's financial performance and strategy is reviewed and managed. The results of KLS are now included in the results of Boston Private Wealth within the Wealth Management and Trust segment, and the results of DGHM are now included in Holding Company and Eliminations for all periods presented. The results of Anchor and BOS for the periods owned are included in Holding Company and Eliminations. 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 nine months ended September 30, 2019 and 2018 . Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Private Banking (In thousands) Net interest income $ 57,058 $ 60,551 $ 174,814 $ 177,129 Fees and other income 3,403 3,337 9,465 8,637 Total revenue 60,461 63,888 184,279 185,766 Provision/ (credit) for loan losses 167 (949 ) 104 (2,291 ) Operating expense (1) 38,134 44,706 117,256 124,003 Income before income taxes 22,160 20,131 66,919 64,054 Income tax expense 4,212 4,469 13,520 13,063 Net income from continuing operations 17,948 15,662 53,399 50,991 Net income attributable to the Company $ 17,948 $ 15,662 $ 53,399 $ 50,991 Assets $ 8,617,207 $ 8,292,901 $ 8,617,207 $ 8,292,901 Depreciation $ 2,229 $ 2,398 $ 7,271 $ 6,013 Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Wealth Management and Trust (In thousands) Net interest income $ 99 $ 98 $ 309 $ 222 Fees and other income 19,106 19,769 57,188 59,108 Total revenue 19,205 19,867 57,497 59,330 Operating expense (1) 13,888 16,434 43,864 49,981 Income before income taxes 5,317 3,433 13,633 9,349 Income tax expense 1,751 1,130 4,465 3,019 Net income from continuing operations 3,566 2,303 9,168 6,330 Net income attributable to the Company $ 3,566 $ 2,303 $ 9,168 $ 6,330 Assets $ 143,326 $ 127,229 $ 143,326 $ 127,229 Amortization of intangibles $ 671 $ 701 $ 2,015 $ 2,103 Depreciation $ 290 $ 409 $ 991 $ 1,230 Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Holding Company and Eliminations (2) (In thousands) Net interest income (3) $ (1,004 ) $ (1,008 ) $ (3,172 ) $ (2,782 ) Fees and other income 2,617 9,208 8,101 36,407 Total revenue 1,613 8,200 4,929 33,625 Operating expense 3,515 7,417 10,629 29,814 Income/ (loss) before income taxes (1,902 ) 783 (5,700 ) 3,811 Income tax expense/ (benefit) (446 ) (138 ) (2,182 ) 12,804 Net income/ (loss) from continuing operations (1,456 ) 921 (3,518 ) (8,993 ) Noncontrolling interests 96 924 265 2,942 Discontinued operations (4) — — — 1,696 Net income/ (loss) attributable to the Company $ (1,552 ) $ (3 ) $ (3,783 ) $ (10,239 ) Assets (including eliminations) $ (69,589 ) $ (44,290 ) $ (69,589 ) $ (44,290 ) Amortization of intangibles $ — $ 49 $ — $ 146 Depreciation $ 51 $ 109 $ 147 $ 336 Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Total Company (2) (In thousands) Net interest income $ 56,153 $ 59,641 $ 171,951 $ 174,569 Fees and other income 25,126 32,314 74,754 104,152 Total revenue 81,279 91,955 246,705 278,721 Provision/ (credit) for loan losses 167 (949 ) 104 (2,291 ) Operating expense 55,537 68,557 171,749 203,798 Income before income taxes 25,575 24,347 74,852 77,214 Income tax expense 5,517 5,461 15,803 28,886 Net income from continuing operations 20,058 18,886 59,049 48,328 Noncontrolling interests 96 924 265 2,942 Discontinued operations (4) — — — 1,696 Net income attributable to the Company $ 19,962 $ 17,962 $ 58,784 $ 47,082 Assets $ 8,690,944 $ 8,375,840 $ 8,690,944 $ 8,375,840 Amortization of intangibles $ 671 $ 750 $ 2,015 $ 2,249 Depreciation $ 2,570 $ 2,916 $ 8,409 $ 7,579 _____________________ (1) Operating expense includes restructuring expense of $1.3 million and $0.4 million for the nine months ended September 30, 2019 related to the Private Banking and Wealth Management and Trust segments, respectively. Operating expense includes restructuring expense of $5.2 million and $0.6 million for the nine months ended September 30, 2018 related to the Private Banking and Wealth Management & Trust segments, respectively. (2) The results of Anchor and BOS for the periods owned in 2018 are included in Holding Company and Eliminations and the Total Company. (3) Interest expense on junior subordinated debentures is included in Holding Company and Eliminations. (4) The Holding Company and Eliminations calculation of net income attributable to the Company includes net income from discontinued operations of zero and $1.7 million for the nine months ended September 30, 2019 and 2018 , 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 | 9 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Investments | Investments The following table presents a summary of investment securities at September 30, 2019 and December 31, 2018 : Amortized Cost Unrealized Fair Value Gains Losses (In thousands) At September 30, 2019 Available-for-sale securities at fair value: U.S. government and agencies $ 19,953 $ 104 $ — $ 20,057 Government-sponsored entities 155,081 1,483 (8 ) 156,556 Municipal bonds 314,970 13,055 (10 ) 328,015 Mortgage-backed securities (1) 432,108 1,847 (3,045 ) 430,910 Total $ 922,112 $ 16,489 $ (3,063 ) $ 935,538 Held-to-maturity securities at amortized cost: Mortgage-backed securities (1) $ 51,379 $ 33 $ (397 ) $ 51,015 Total $ 51,379 $ 33 $ (397 ) $ 51,015 Equity securities at fair value: Money market mutual funds (2) $ 21,780 $ — $ — $ 21,780 Total $ 21,780 $ — $ — $ 21,780 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 September 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 $ 12,614 $ 12,647 After one, but within five years 290,921 292,357 After five, but within ten years 250,045 253,765 Greater than ten years 368,532 376,769 Total $ 922,112 $ 935,538 The following table presents the maturities of held-to-maturity investment securities, based on contractual maturity, as of September 30, 2019 . Held-to-maturity Securities Amortized Cost Fair Value (In thousands) After five, but within ten years $ 41,912 $ 41,593 Greater than ten years 9,467 9,422 Total $ 51,379 $ 51,015 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Proceeds from sales $ — $ 16,231 $ — $ 51,781 Realized gains — — — 7 Realized losses — — — (1 ) Change in unrealized gain/ (loss) on equity securities reflected in the Consolidated Statement of Operations — — — (23 ) The following tables present information regarding securities at September 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) September 30, 2019 Available-for-sale securities U.S. government and agencies $ — $ — $ — $ — $ — $ — — Government-sponsored entities 6,735 (8 ) — — 6,735 (8 ) 4 Municipal bonds 8,506 (10 ) — — 8,506 (10 ) 3 Mortgage-backed securities (1) 63,489 (226 ) 206,795 (2,819 ) 270,284 (3,045 ) 79 Total $ 78,730 $ (244 ) $ 206,795 $ (2,819 ) $ 285,525 $ (3,063 ) 86 Held-to-maturity securities Mortgage-backed securities (1) $ 5,608 $ (21 ) $ 32,425 $ (376 ) $ 38,033 $ (397 ) 13 Total $ 5,608 $ (21 ) $ 32,425 $ (376 ) $ 38,033 $ (397 ) 13 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. As of September 30, 2019 , the government-sponsored entities securities and mortgage-backed securities in the first table above had current Standard and Poor’s credit rating of at least AAA. The municipal bonds in the first table above had a current Standard and Poor’s credit rating of at least AA. As of September 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 September 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. Other 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. Other 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 other investments with unrealized losses as of September 30, 2019 or December 31, 2018 . The Company’s other 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 $65.4 million and $54.4 million in other investments included in other assets as of September 30, 2019 and December 31, 2018 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 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 September 30, 2019 and December 31, 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall: As of September 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 $ 20,057 $ — $ 20,057 $ — Government-sponsored entities 156,556 — 156,556 — Municipal bonds 328,015 — 328,015 — Mortgage-backed securities 430,910 — 430,910 — Total available-for-sale securities 935,538 — 935,538 — Equity securities 21,780 21,780 — — Derivatives - interest rate customer swaps 47,851 — 47,851 — Derivatives - risk participation agreement 74 — 74 — Trading securities held in the “rabbi trust” (1) 6,482 6,482 — — Liabilities: Derivatives - interest rate customer swaps $ 48,891 $ — $ 48,891 $ — Derivatives - risk participation agreement 344 — 344 — Deferred compensation “rabbi trust” (1) 6,482 6,482 — — 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 September 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 September 30, 2019 or December 31, 2018 were categorized as Level 3. As of September 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 September 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 September 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 September 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 September 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 September 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 September 30, 2019 and 2018, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall. As of September 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 September 30, 2019 Nine months ended September 30, 2019 (In thousands) Assets: Impaired loans (1) $ 729 $ — $ — $ 729 $ (388 ) $ 204 _____________________ (1) Collateral-dependent impaired loans held as of September 30, 2019 that had write-downs or recoveries in fair value or whose specific reserve changed during the nine months ended September 30, 2019 . As of September 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 September 30, 2018 Nine months ended September 30, 2018 (In thousands) Assets: Impaired loans (1) $ 2,005 $ — $ — $ 2,005 $ (440 ) $ (1,367 ) _____________________ (1) Collateral-dependent impaired loans held as of September 30, 2018 that had write-downs or recoveries in fair value or whose specific reserve changed during the nine months ended September 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 September 30, 2019 Fair Value Valuation Technique Unobservable Input Range of Inputs Utilized Weighted Average of Inputs Utilized (In thousands) Impaired Loans $ 729 Appraisals of Collateral Discount for costs to sell 0% - 6% 6% Appraisal adjustments —% —% As of September 30, 2018 Fair Value Valuation Technique Unobservable Input Range of Inputs Utilized Weighted Average of Inputs Utilized (In thousands) Impaired Loans $ 2,005 Appraisals of Collateral Discount for costs to sell 0% - 23% 6% Appraisal adjustments —% —% 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 September 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 $ 78,010 $ 78,010 $ 78,010 $ — $ — Investment securities held-to-maturity 51,379 51,015 — 51,015 — Loans held for sale 6,658 6,708 — 6,708 — Loans, net 6,991,792 7,006,120 — — 7,006,120 Other financial assets 77,614 77,614 — 77,614 — FINANCIAL LIABILITIES: Deposits 6,658,242 6,658,538 — 6,658,538 — Securities sold under agreements to repurchase 48,860 48,860 — 48,860 — Federal funds purchased 230,000 230,000 — 230,000 — Federal Home Loan Bank borrowings 570,904 571,606 — 571,606 — Junior subordinated debentures 106,363 96,363 — — 96,363 Other financial liabilities 2,730 2,730 — 2,730 — 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 September 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 | 9 Months Ended |
Sep. 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: September 30, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 695,029 $ 623,037 Commercial tax-exempt 448,488 451,671 Total commercial and industrial 1,143,517 1,074,708 Commercial real estate 2,533,346 2,395,692 Construction and land 209,741 240,306 Residential 2,964,042 2,948,973 Home equity 84,432 90,421 Consumer and other 132,073 143,058 Total $ 7,067,151 $ 6,893,158 In the third quarter of 2019, the Bank sold $92.4 million of the residential loan portfolio for a $0.8 million net gain. The following table presents nonaccrual loans receivable by class of receivable as of the dates indicated: September 30, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 800 $ 2,554 Commercial tax-exempt — — Total commercial and industrial 800 2,554 Commercial real estate — 546 Residential 14,219 7,914 Home equity 2,545 3,031 Consumer and other 1 12 Total $ 17,565 $ 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 were no loans 90 days or more past due, but still accruing, as of both September 30, 2019 and December 31, 2018 . 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: September 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 $ 554 $ 2,494 $ 3,048 $ 83 $ 186 $ 531 $ 800 $ 691,181 $ 695,029 Commercial tax-exempt — — — — — — — 448,488 448,488 Commercial real estate 497 — 497 — — — — 2,532,849 2,533,346 Construction and land — — — — — — — 209,741 209,741 Residential — 266 266 9,084 301 4,834 14,219 2,949,557 2,964,042 Home equity 74 279 353 991 — 1,554 2,545 81,534 84,432 Consumer and other 15 — 15 1 — — 1 132,057 132,073 Total $ 1,140 $ 3,039 $ 4,179 $ 10,159 $ 487 $ 6,919 $ 17,565 $ 7,045,407 $ 7,067,151 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: September 30, 2019 By Loan Grade or Nonaccrual Status Pass Special Mention Accruing Classified (1) Nonaccrual Loans Total (In thousands) Commercial and industrial $ 656,012 $ 13,084 $ 25,133 $ 800 $ 695,029 Commercial tax-exempt 441,811 2,625 4,052 — 448,488 Commercial real estate 2,460,408 42,124 30,814 — 2,533,346 Construction and land 209,741 — — — 209,741 Residential 2,946,823 — 3,000 14,219 2,964,042 Home equity 81,308 300 279 2,545 84,432 Consumer and other 132,072 — — 1 132,073 Total $ 6,928,175 $ 58,133 $ 63,278 $ 17,565 $ 7,067,151 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 nine months ended September 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 $ 479 $ 788 n/a $ 1,233 $ 1,256 $ 192 $ 217 Commercial tax-exempt — — n/a — — — — Commercial real estate — — n/a — 55 — 256 Construction and land — — n/a — — — — Residential 14,879 15,140 n/a 15,026 13,321 236 476 Home equity 2,313 2,995 n/a 2,359 2,106 12 13 Consumer and other — — n/a — — — — Subtotal $ 17,671 $ 18,923 n/a 18,618 $ 16,738 440 $ 962 With an allowance recorded: Commercial and industrial $ 538 $ 539 $ 341 491 $ 877 3 $ 23 Commercial tax-exempt — — — — — — — Commercial real estate — — — — — — — Construction and land — — — — — — — Residential 2,059 2,059 712 1,419 1,017 5 18 Home equity 279 279 23 276 626 1 2 Consumer and other — — — — — — — Subtotal $ 2,876 $ 2,877 $ 1,076 $ 2,186 $ 2,520 $ 9 $ 43 Total: Commercial and industrial $ 1,017 $ 1,327 $ 341 $ 1,724 $ 2,133 $ 195 $ 240 Commercial tax-exempt — — — — — — — Commercial real estate — — — — 55 — 256 Construction and land — — — — — — — Residential 16,938 17,199 712 16,445 14,338 241 494 Home equity 2,592 3,274 23 2,635 2,732 13 15 Consumer and other — — — — — — — Total $ 20,547 $ 21,800 $ 1,076 $ 20,804 $ 19,258 $ 449 $ 1,005 _____________________ (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 nine months ended September 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 $ 1,150 $ 2,083 n/a $ 1,617 $ 1,730 $ 33 $ 55 Commercial tax-exempt — — n/a — — — — Commercial real estate 1,625 2,966 n/a 2,526 2,439 583 633 Construction and land — — n/a — 66 — 16 Residential 7,097 7,457 n/a 10,102 10,002 146 335 Home equity — — n/a — 1,056 — 24 Consumer and other — — n/a — — — — Subtotal $ 9,872 $ 12,506 n/a $ 14,245 $ 15,293 $ 762 $ 1,063 With an allowance recorded: Commercial and industrial $ 1,635 $ 1,638 $ 577 $ 625 $ 322 $ 4 $ 6 Commercial tax-exempt — — — — — — — Commercial real estate — — — 4,045 5,314 476 704 Construction and land — — — — — — — Residential 682 681 74 734 787 5 17 Home equity 1,769 1,769 596 1,769 729 1 1 Consumer and other — — — — 13 — 3 Subtotal $ 4,086 $ 4,088 $ 1,247 $ 7,173 $ 7,165 $ 486 $ 731 Total: Commercial and industrial $ 2,785 $ 3,721 $ 577 $ 2,242 $ 2,052 $ 37 $ 61 Commercial tax-exempt — — — — — — — Commercial real estate 1,625 2,966 — 6,571 7,753 1,059 1,337 Construction and land — — — — 66 — 16 Residential 7,779 8,138 74 10,836 10,789 151 352 Home equity 1,769 1,769 596 1,769 1,785 1 25 Consumer and other — — — — 13 — 3 Total $ 13,958 $ 16,594 $ 1,247 $ 21,418 $ 22,458 $ 1,248 $ 1,794 _____________________ (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 September 30, 2019 , the Bank has pledged $2.6 billion of loans in a blanket lien agreement with the FHLB. The Bank also has $437.2 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 September 30, 2019 and December 31, 2018 , TDRs totaled $9.5 million and $8.0 million , respectively. As of September 30, 2019 , $6.9 million of the $9.5 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 nine months ended September 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 (1) 2 3,222 3,227 — — Home equity (1) 1 274 283 — — Consumer and other — — — — — Total 4 $ 3,675 $ 3,689 — $ — As of and for the three and nine months ended September 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- (In thousands, except number of loans) Commercial and industrial 1 $ 179 — $ — — $ — — $ — 1 $ 179 Commercial real estate — — — — — — — — — — Construction and land — — — — — — — — — — Residential — — 2 3,227 — — — — 2 3,227 Home equity — — 1 283 — — — — 1 283 Consumer and other — — — — — — — — — — There were no loans that were restructured or defaulted during the three months ended September 30, 2019. 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: September 30, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 14,358 $ 8,024 Commercial tax-exempt 18,711 19,105 Commercial real estate 34,816 60,688 Construction and land 23,133 39,966 Total loan participations serviced for others $ 91,018 $ 127,783 Residential $ 119,389 $ 33,168 Total loans serviced for others $ 119,389 $ 33,168 Total loans include deferred loan origination (fees)/ costs, net, of $8.4 million and $8.5 million as of September 30, 2019 and December 31, 2018 |
Allowance for Loan Losses
Allowance for Loan Losses | 9 Months Ended |
Sep. 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 $75.4 million and $75.3 million as of September 30, 2019 and December 31, 2018 , respectively. The following tables present a summary of the changes in the allowance for loan losses for the periods indicated: As of and for the three months ended September 30, As of and for the nine months ended September 30, 2019 2018 2019 2018 (In thousands) Allowance for loan losses, beginning of period: Commercial and industrial $ 16,082 $ 12,381 $ 15,912 $ 11,735 Commercial real estate 43,741 45,183 41,934 46,820 Construction and land 4,780 4,613 6,022 4,949 Residential 9,555 9,804 10,026 9,773 Home equity 805 1,336 1,284 835 Consumer and other 104 147 134 630 Total allowance for loan losses, beginning of period 75,067 73,464 75,312 74,742 Loans charged-off: Commercial and industrial (180 ) — (375 ) (339 ) Commercial real estate — — — (135 ) Construction and land — — — — Residential — — — (16 ) Home equity — — (562 ) — Consumer and other (5 ) — (7 ) (39 ) Total charge-offs (185 ) — (944 ) (529 ) Recoveries on loans previously charged-off: Commercial and industrial 275 153 503 387 Commercial real estate 27 820 246 995 Construction and land — — — — Residential — — 100 27 Home equity 6 — 6 1 Consumer and other 2 12 32 168 Total recoveries 310 985 887 1,578 Provision/ (credit) for loan losses: Commercial and industrial 361 1,921 498 2,672 Commercial real estate (762 ) (3,179 ) 826 (4,856 ) Construction and land 6 172 (1,236 ) (164 ) Residential 617 144 46 164 Home equity (57 ) 6 26 506 Consumer and other 2 (13 ) (56 ) (613 ) Total provision/(credit) for loan losses 167 (949 ) 104 (2,291 ) As of and for the three months ended September 30, As of and for the nine months ended September 30, 2019 2018 2019 2018 (In thousands) Allowance for loan losses, end of period: Commercial and industrial 16,538 14,455 16,538 14,455 Commercial real estate 43,006 42,824 43,006 42,824 Construction and land 4,786 4,785 4,786 4,785 Residential 10,172 9,948 10,172 9,948 Home equity 754 1,342 754 1,342 Consumer and other 103 146 103 146 Total allowance for loan losses, end of period $ 75,359 $ 73,500 $ 75,359 $ 73,500 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 September 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 September 30, 2019 or December 31, 2018 . September 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 $ 1,017 $ 341 $ 1,142,500 $ 16,197 $ 1,143,517 $ 16,538 Commercial real estate — — 2,533,346 43,006 2,533,346 43,006 Construction and land — — 209,741 4,786 209,741 4,786 Residential 16,938 712 2,947,104 9,460 2,964,042 10,172 Home equity 2,592 23 81,840 731 84,432 754 Consumer and other — — 132,073 103 132,073 103 Total $ 20,547 $ 1,076 $ 7,046,604 $ 74,283 $ 7,067,151 $ 75,359 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 | 9 Months Ended |
Sep. 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 September 30, 2019 and December 31, 2018 : September 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 $ — Other liabilities $ — Other assets $ 553 Other liabilities $ — Derivatives not designated as hedging instruments: Interest rate swaps Other assets 47,851 Other liabilities 48,891 Other assets 21,889 Other liabilities 22,385 Risk participation agreements Other assets 74 Other liabilities 344 Other assets 2 Other liabilities 152 Total $ 47,925 $ 49,235 $ 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 nine months ended September 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 September 30, Three months ended September 30, 2019 2018 2019 2018 (In thousands) (In thousands) Interest rate swaps $ 1 $ (193 ) Interest expense $ 6 $ 101 Total $ 1 $ (193 ) $ 6 $ 101 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 Nine months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) (In thousands) Interest rate swaps $ (46 ) $ 818 Interest expense $ 508 $ 385 Total $ (46 ) $ 818 $ 508 $ 385 ____________________ (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 Statement of Operations for the three and nine months ended September 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 September 30, Nine months ended September 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 $ 6 $ 101 $ 508 $ 385 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 $ 6 $ 101 $ 508 $ 385 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 September 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 September 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 September 30, 2019 and December 31, 2018 . As of September 30, 2019 and December 31, 2018 , the termination amounts related to collateral determinations of derivatives in a liability position were $48.7 million and $2.2 million , respectively. The Company has minimum collateral posting thresholds with its derivative counterparties. As of September 30, 2019 , the Company had pledged securities with a market value of $51.8 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. The Company has utilized interest rate derivatives in the past, but as of September 30, 2019, there were no active cash flow hedges. 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. For active cash flow hedges, 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. 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 $1.5 billion as of September 30, 2019 and $1.3 billion as of December 31, 2018. As of September 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 September 30, 2019 and December 31, 2018 , there were seven of these risk participation transactions with an aggregate notional amount of $59.1 million and $59.8 million , respectively. 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 September 30, 2019 and December 31, 2018 , there were four of these risk participation transactions with an aggregate notional amount of $20.6 million and $20.7 million , respectively. 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 nine months ended September 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Interest rate swaps Other income/ (expense) $ (289 ) $ 8 $ (544 ) $ (39 ) Risk participation agreements Other income/ (expense) (11 ) 18 (120 ) 238 Total $ (300 ) $ 26 $ (664 ) $ 199 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 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: Nine months ended September 30, 2019 2018 (In thousands) Income from continuing operations: Income before income taxes $ 74,852 $ 77,214 Income tax expense 15,803 28,886 Net income from continuing operations $ 59,049 $ 48,328 Effective tax rate, continuing operations 21.1 % 37.4 % 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 $ 265 $ 2,942 Income tax expense — — Net income attributable to noncontrolling interests $ 265 $ 2,942 Effective tax rate, noncontrolling interests — % — % Income attributable to the Company Income before income taxes $ 74,587 $ 76,660 Income tax expense 15,803 29,578 Net income attributable to the Company $ 58,784 $ 47,082 Effective tax rate attributable to the Company 21.2 % 38.6 % The effective tax rate for continuing operations for the nine months ended September 30, 2019 of 21.1% , with related tax expense of $15.8 million , was calculated based on a projected 2019 annual effective tax rate. The effective tax rate was more than the statutory rate of 21% due primarily to state and local income taxes and the accounting for investments in affordable housing projects. These savings were partially offset by earnings from tax-exempt investments and income tax credits. The effective tax rate for continuing operations for the nine months ended September 30, 2018 of 37.4% , with related tax expense of $28.9 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 nine months ended September 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 | 9 Months Ended |
Sep. 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 Statement 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 $0.9 million for the three-month periods ended September 30, 2019 and 2018 , respectively, and $0.3 million and $2.9 million for the nine-month periods ended September 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 $1.5 million and $2.5 million as of September 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 September 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 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 September 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 Nine months ended September 30, 2019 September 30, 2019 Redeemable noncontrolling interests Redeemable noncontrolling interests (In thousands) Noncontrolling interests at beginning of period $ 1,786 $ 2,526 Net income attributable to noncontrolling interests 96 265 Distributions (96 ) (265 ) Purchases/ (sales) of ownership interests — 12 Amortization of equity compensation 10 36 Adjustments to fair value (315 ) (1,093 ) Noncontrolling interests at end of period $ 1,481 $ 1,481 Three months ended Nine months ended September 30, 2018 September 30, 2018 Redeemable noncontrolling interests Noncontrolling interests Redeemable noncontrolling interests Noncontrolling interests (In thousands) Noncontrolling interests at beginning of period $ 10,747 $ 1,996 $ 17,461 $ 5,186 Net income attributable to noncontrolling interests 711 213 2,202 740 Distributions (687 ) (203 ) (2,136 ) (712 ) Purchases/ (sales) of ownership interests — — (6,353 ) (3,051 ) Amortization of equity compensation 125 — 373 161 Adjustments to fair value 790 203 139 (115 ) Noncontrolling interests at end of period $ 11,686 $ 2,209 $ 11,686 $ 2,209 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 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 nine months ended September 30, 2019 and 2018 : Description of component of accumulated other comprehensive income/ (loss) Three months ended September 30, Nine months ended September 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) $ 6 $ 101 $ 508 $ 385 Interest (expense) Tax (expense)/ benefit (2 ) (29 ) (148 ) (112 ) Income tax (expense)/ benefit Net $ 4 $ 72 $ 360 $ 273 Net income/ (loss) attributable to the Company Total reclassifications for the period, net of tax $ 4 $ 72 $ 360 $ 273 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 (18,888 ) 574 1 (18,313 ) Reclassified from other comprehensive income/ (loss) — (273 ) — (273 ) Other comprehensive income/ (loss), net (18,888 ) 301 1 (18,586 ) Reclassification from the adoption of ASUs 2017-12 and 2016-01 $ (339 ) $ 5 $ — $ (334 ) Balance at September 30, 2018 $ (27,367 ) $ 638 $ (849 ) $ (27,578 ) Balance at December 31, 2018 $ (17,556 ) $ 391 $ (554 ) $ (17,719 ) Other comprehensive income/ (loss) before reclassifications 27,469 (31 ) — 27,438 Reclassified from other comprehensive income/ (loss) — (360 ) — (360 ) Other comprehensive income/ (loss), net 27,469 (391 ) — 27,078 Balance at September 30, 2019 $ 9,913 $ — $ (554 ) $ 9,359 |
Restructuring
Restructuring | 9 Months Ended |
Sep. 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 nine months ended September 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 Costs paid (1,156 ) — (1,156 ) Accrued charges at September 30, 2019 $ 1,036 $ 790 $ 1,826 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 — $ — $ — Costs incurred 5,763 — 5,763 Accrued charges at September 30, 2018 $ 5,763 $ — $ 5,763 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 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 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 nine months ended September 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, trust services, and other financial advisory services to clients. The Company’s performance obligation under these contracts is satisfied over time as the 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. Fees are also 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. No performance based incentives are earned on wealth management contracts. Receivables are recorded on the consolidated balance sheet in the fees receivable line item. Deferred revenues of $6.2 million and $6.9 million as of September 30, 2019 and 2018 , respectively, are recorded on the consolidated balance sheet within the other liabilities 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 nine months ended September 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 swap fees and 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 September 30, 2019 and 2018 , $0.7 million and $1.1 million , respectively, of other banking fee income as described above is considered in-scope for ASC 606. For the nine months ended September 30, 2019 and 2018, $2.0 million and $3.1 million , respectively, of other banking fee income as described above is considered in-scope for ASC 606. |
Lease Accounting
Lease Accounting | 9 Months Ended |
Sep. 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 $124.1 million of lease liabilities and $108.5 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 41 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 September 30, Nine months ended September 30, 2019 2019 (In thousands) Lease cost Operating lease cost $ 4,866 $ 14,392 Short-term lease cost 12 41 Variable lease cost 143 147 Less: Sublease income (27 ) (73 ) Total operating lease cost $ 4,994 $ 14,507 Nine months ended September 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 $ 15,013 ROU assets obtained in exchange for new operating lease liabilities $ 10,510 Weighted-average remaining lease term for operating leases 8.2 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 September 30, 2019 : September 30, 2019 (In thousands) Remainder of 2019 $ 5,084 2020 20,224 2021 20,406 2022 20,360 2023 19,575 Thereafter 57,005 Total future minimum lease payments 142,654 Less: Amounts representing interest (19,855 ) Present value of net future minimum lease payments $ 122,799 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 nine months ended September 30, 2018 , prior to the adoption of ASU 2016-02, was $5.3 million and $16.1 million |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 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 $124.1 million of lease liabilities and $108.5 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. The project team has selected a third-party software service provider and is implementing a probability of default/loss given default model where the project team has evaluated the use of both peer data and internal data to estimate the expected losses over the remaining life of the portfolio as required by the standard. Further, the team has identified the necessary data requirements and is in the process of testing the material data inputs, and assessing and validating potential model options. Within the Expected Loss model, the project team has determined to use a two factor regression based model identifying two economic factors per loan segment. In addition, we have determined both the forecast and reversion method to be used. The Company continues to develop accounting policies and establish 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 nine months ended September 30, 2019, $0.8 million and $1.4 million , 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 nine months ended September 30, 2018 , $131 thousand and $411 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. Early adoption is permitted but the Company does not plan on adopting early. 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”). 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 material 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) | 9 Months Ended |
Sep. 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 $124.1 million of lease liabilities and $108.5 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 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 material 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 $124.1 million of lease liabilities and $108.5 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. The project team has selected a third-party software service provider and is implementing a probability of default/loss given default model where the project team has evaluated the use of both peer data and internal data to estimate the expected losses over the remaining life of the portfolio as required by the standard. Further, the team has identified the necessary data requirements and is in the process of testing the material data inputs, and assessing and validating potential model options. Within the Expected Loss model, the project team has determined to use a two factor regression based model identifying two economic factors per loan segment. In addition, we have determined both the forecast and reversion method to be used. The Company continues to develop accounting policies and establish 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 nine months ended September 30, 2019, $0.8 million and $1.4 million , 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 nine months ended September 30, 2018 , $131 thousand and $411 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. Early adoption is permitted but the Company does not plan on adopting early. 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”). 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 material 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) | 9 Months Ended |
Sep. 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands, except share and per share data) Basic earnings per share - Numerator: Net income from continuing operations $ 20,058 $ 18,886 $ 59,049 $ 48,328 Less: Net income attributable to noncontrolling interests 96 924 265 2,942 Net income from continuing operations attributable to the Company 19,962 17,962 58,784 45,386 Decrease/ (increase) in noncontrolling interests’ redemption values (1) 304 (829 ) 1,045 (391 ) Dividends on preferred stock — — — (3,985 ) Total adjustments to income attributable to common shareholders 304 (829 ) 1,045 (4,376 ) Net income from continuing operations attributable to common shareholders, treasury stock method 20,266 17,133 59,829 41,010 Net income from discontinued operations — — — 1,696 Net income attributable to common shareholders, treasury stock method $ 20,266 $ 17,133 $ 59,829 $ 42,706 Basic earnings per share - Denominator: Weighted average basic common shares outstanding 83,631,403 84,017,284 83,495,361 83,544,754 Per share data - Basic earnings per share from: Continuing operations $ 0.24 $ 0.20 $ 0.72 $ 0.49 Discontinued operations $ — $ — $ — $ 0.02 Total attributable to common shareholders $ 0.24 $ 0.20 $ 0.72 $ 0.51 Three months ended September 30, Nine months ended September 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 $ 20,266 $ 17,133 $ 59,829 $ 41,010 Net income from discontinued operations — — — 1,696 Net income attributable to common shareholders, after assumed dilution $ 20,266 $ 17,133 $ 59,829 $ 42,706 Diluted earnings per share - Denominator: Weighted average basic common shares outstanding 83,631,403 84,017,284 83,495,361 83,544,754 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) 325,305 853,906 507,920 1,052,855 Warrants to purchase common stock — 627,378 — 656,686 Dilutive common shares 325,305 1,481,284 507,920 1,709,541 Weighted average diluted common shares outstanding (2) 83,956,708 85,498,568 84,003,281 85,254,295 Per share data - Diluted earnings per share from: Continuing operations $ 0.24 $ 0.20 $ 0.71 $ 0.48 Discontinued operations $ — $ — $ — $ 0.02 Total attributable to common shareholders $ 0.24 $ 0.20 $ 0.71 $ 0.50 Dividends per share declared and paid on common stock $ 0.12 $ 0.12 $ 0.36 $ 0.36 _____________________ (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 nine months ended September 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 September 30, Nine months ended September 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 808 408 760 226 Total shares excluded due to exercise price exceeding the average market price of common shares during the period 808 408 760 226 |
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 September 30, Nine months ended September 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 808 408 760 226 Total shares excluded due to exercise price exceeding the average market price of common shares during the period 808 408 760 226 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2019 and 2018 . Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Private Banking (In thousands) Net interest income $ 57,058 $ 60,551 $ 174,814 $ 177,129 Fees and other income 3,403 3,337 9,465 8,637 Total revenue 60,461 63,888 184,279 185,766 Provision/ (credit) for loan losses 167 (949 ) 104 (2,291 ) Operating expense (1) 38,134 44,706 117,256 124,003 Income before income taxes 22,160 20,131 66,919 64,054 Income tax expense 4,212 4,469 13,520 13,063 Net income from continuing operations 17,948 15,662 53,399 50,991 Net income attributable to the Company $ 17,948 $ 15,662 $ 53,399 $ 50,991 Assets $ 8,617,207 $ 8,292,901 $ 8,617,207 $ 8,292,901 Depreciation $ 2,229 $ 2,398 $ 7,271 $ 6,013 Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Wealth Management and Trust (In thousands) Net interest income $ 99 $ 98 $ 309 $ 222 Fees and other income 19,106 19,769 57,188 59,108 Total revenue 19,205 19,867 57,497 59,330 Operating expense (1) 13,888 16,434 43,864 49,981 Income before income taxes 5,317 3,433 13,633 9,349 Income tax expense 1,751 1,130 4,465 3,019 Net income from continuing operations 3,566 2,303 9,168 6,330 Net income attributable to the Company $ 3,566 $ 2,303 $ 9,168 $ 6,330 Assets $ 143,326 $ 127,229 $ 143,326 $ 127,229 Amortization of intangibles $ 671 $ 701 $ 2,015 $ 2,103 Depreciation $ 290 $ 409 $ 991 $ 1,230 Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Holding Company and Eliminations (2) (In thousands) Net interest income (3) $ (1,004 ) $ (1,008 ) $ (3,172 ) $ (2,782 ) Fees and other income 2,617 9,208 8,101 36,407 Total revenue 1,613 8,200 4,929 33,625 Operating expense 3,515 7,417 10,629 29,814 Income/ (loss) before income taxes (1,902 ) 783 (5,700 ) 3,811 Income tax expense/ (benefit) (446 ) (138 ) (2,182 ) 12,804 Net income/ (loss) from continuing operations (1,456 ) 921 (3,518 ) (8,993 ) Noncontrolling interests 96 924 265 2,942 Discontinued operations (4) — — — 1,696 Net income/ (loss) attributable to the Company $ (1,552 ) $ (3 ) $ (3,783 ) $ (10,239 ) Assets (including eliminations) $ (69,589 ) $ (44,290 ) $ (69,589 ) $ (44,290 ) Amortization of intangibles $ — $ 49 $ — $ 146 Depreciation $ 51 $ 109 $ 147 $ 336 Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Total Company (2) (In thousands) Net interest income $ 56,153 $ 59,641 $ 171,951 $ 174,569 Fees and other income 25,126 32,314 74,754 104,152 Total revenue 81,279 91,955 246,705 278,721 Provision/ (credit) for loan losses 167 (949 ) 104 (2,291 ) Operating expense 55,537 68,557 171,749 203,798 Income before income taxes 25,575 24,347 74,852 77,214 Income tax expense 5,517 5,461 15,803 28,886 Net income from continuing operations 20,058 18,886 59,049 48,328 Noncontrolling interests 96 924 265 2,942 Discontinued operations (4) — — — 1,696 Net income attributable to the Company $ 19,962 $ 17,962 $ 58,784 $ 47,082 Assets $ 8,690,944 $ 8,375,840 $ 8,690,944 $ 8,375,840 Amortization of intangibles $ 671 $ 750 $ 2,015 $ 2,249 Depreciation $ 2,570 $ 2,916 $ 8,409 $ 7,579 _____________________ (1) Operating expense includes restructuring expense of $1.3 million and $0.4 million for the nine months ended September 30, 2019 related to the Private Banking and Wealth Management and Trust segments, respectively. Operating expense includes restructuring expense of $5.2 million and $0.6 million for the nine months ended September 30, 2018 related to the Private Banking and Wealth Management & Trust segments, respectively. (2) The results of Anchor and BOS for the periods owned in 2018 are included in Holding Company and Eliminations and the Total Company. (3) Interest expense on junior subordinated debentures is included in Holding Company and Eliminations. (4) The Holding Company and Eliminations calculation of net income attributable to the Company includes net income from discontinued operations of zero and $1.7 million for the nine months ended September 30, 2019 and 2018 , 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) | 9 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Schedule of debt securities available-for-sale | The following table presents a summary of investment securities at September 30, 2019 and December 31, 2018 : Amortized Cost Unrealized Fair Value Gains Losses (In thousands) At September 30, 2019 Available-for-sale securities at fair value: U.S. government and agencies $ 19,953 $ 104 $ — $ 20,057 Government-sponsored entities 155,081 1,483 (8 ) 156,556 Municipal bonds 314,970 13,055 (10 ) 328,015 Mortgage-backed securities (1) 432,108 1,847 (3,045 ) 430,910 Total $ 922,112 $ 16,489 $ (3,063 ) $ 935,538 Held-to-maturity securities at amortized cost: Mortgage-backed securities (1) $ 51,379 $ 33 $ (397 ) $ 51,015 Total $ 51,379 $ 33 $ (397 ) $ 51,015 Equity securities at fair value: Money market mutual funds (2) $ 21,780 $ — $ — $ 21,780 Total $ 21,780 $ — $ — $ 21,780 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 September 30, 2019 and December 31, 2018 : Amortized Cost Unrealized Fair Value Gains Losses (In thousands) At September 30, 2019 Available-for-sale securities at fair value: U.S. government and agencies $ 19,953 $ 104 $ — $ 20,057 Government-sponsored entities 155,081 1,483 (8 ) 156,556 Municipal bonds 314,970 13,055 (10 ) 328,015 Mortgage-backed securities (1) 432,108 1,847 (3,045 ) 430,910 Total $ 922,112 $ 16,489 $ (3,063 ) $ 935,538 Held-to-maturity securities at amortized cost: Mortgage-backed securities (1) $ 51,379 $ 33 $ (397 ) $ 51,015 Total $ 51,379 $ 33 $ (397 ) $ 51,015 Equity securities at fair value: Money market mutual funds (2) $ 21,780 $ — $ — $ 21,780 Total $ 21,780 $ — $ — $ 21,780 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 September 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 $ 12,614 $ 12,647 After one, but within five years 290,921 292,357 After five, but within ten years 250,045 253,765 Greater than ten years 368,532 376,769 Total $ 922,112 $ 935,538 The following table presents the maturities of held-to-maturity investment securities, based on contractual maturity, as of September 30, 2019 . Held-to-maturity Securities Amortized Cost Fair Value (In thousands) After five, but within ten years $ 41,912 $ 41,593 Greater than ten years 9,467 9,422 Total $ 51,379 $ 51,015 |
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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Proceeds from sales $ — $ 16,231 $ — $ 51,781 Realized gains — — — 7 Realized losses — — — (1 ) Change in unrealized gain/ (loss) on equity securities reflected in the Consolidated Statement of Operations — — — (23 ) |
Schedule of unrealized loss on investments | The following tables present information regarding securities at September 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) September 30, 2019 Available-for-sale securities U.S. government and agencies $ — $ — $ — $ — $ — $ — — Government-sponsored entities 6,735 (8 ) — — 6,735 (8 ) 4 Municipal bonds 8,506 (10 ) — — 8,506 (10 ) 3 Mortgage-backed securities (1) 63,489 (226 ) 206,795 (2,819 ) 270,284 (3,045 ) 79 Total $ 78,730 $ (244 ) $ 206,795 $ (2,819 ) $ 285,525 $ (3,063 ) 86 Held-to-maturity securities Mortgage-backed securities (1) $ 5,608 $ (21 ) $ 32,425 $ (376 ) $ 38,033 $ (397 ) 13 Total $ 5,608 $ (21 ) $ 32,425 $ (376 ) $ 38,033 $ (397 ) 13 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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 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 September 30, 2019 and December 31, 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall: As of September 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 $ 20,057 $ — $ 20,057 $ — Government-sponsored entities 156,556 — 156,556 — Municipal bonds 328,015 — 328,015 — Mortgage-backed securities 430,910 — 430,910 — Total available-for-sale securities 935,538 — 935,538 — Equity securities 21,780 21,780 — — Derivatives - interest rate customer swaps 47,851 — 47,851 — Derivatives - risk participation agreement 74 — 74 — Trading securities held in the “rabbi trust” (1) 6,482 6,482 — — Liabilities: Derivatives - interest rate customer swaps $ 48,891 $ — $ 48,891 $ — Derivatives - risk participation agreement 344 — 344 — Deferred compensation “rabbi trust” (1) 6,482 6,482 — — 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 September 30, 2019 and 2018, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall. As of September 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 September 30, 2019 Nine months ended September 30, 2019 (In thousands) Assets: Impaired loans (1) $ 729 $ — $ — $ 729 $ (388 ) $ 204 _____________________ (1) Collateral-dependent impaired loans held as of September 30, 2019 that had write-downs or recoveries in fair value or whose specific reserve changed during the nine months ended September 30, 2019 . As of September 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 September 30, 2018 Nine months ended September 30, 2018 (In thousands) Assets: Impaired loans (1) $ 2,005 $ — $ — $ 2,005 $ (440 ) $ (1,367 ) _____________________ (1) Collateral-dependent impaired loans held as of September 30, 2018 that had write-downs or recoveries in fair value or whose specific reserve changed during the nine months ended September 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 September 30, 2019 Fair Value Valuation Technique Unobservable Input Range of Inputs Utilized Weighted Average of Inputs Utilized (In thousands) Impaired Loans $ 729 Appraisals of Collateral Discount for costs to sell 0% - 6% 6% Appraisal adjustments —% —% As of September 30, 2018 Fair Value Valuation Technique Unobservable Input Range of Inputs Utilized Weighted Average of Inputs Utilized (In thousands) Impaired Loans $ 2,005 Appraisals of Collateral Discount for costs to sell 0% - 23% 6% Appraisal adjustments —% —% |
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 September 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 $ 78,010 $ 78,010 $ 78,010 $ — $ — Investment securities held-to-maturity 51,379 51,015 — 51,015 — Loans held for sale 6,658 6,708 — 6,708 — Loans, net 6,991,792 7,006,120 — — 7,006,120 Other financial assets 77,614 77,614 — 77,614 — FINANCIAL LIABILITIES: Deposits 6,658,242 6,658,538 — 6,658,538 — Securities sold under agreements to repurchase 48,860 48,860 — 48,860 — Federal funds purchased 230,000 230,000 — 230,000 — Federal Home Loan Bank borrowings 570,904 571,606 — 571,606 — Junior subordinated debentures 106,363 96,363 — — 96,363 Other financial liabilities 2,730 2,730 — 2,730 — 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) | 9 Months Ended |
Sep. 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: September 30, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 695,029 $ 623,037 Commercial tax-exempt 448,488 451,671 Total commercial and industrial 1,143,517 1,074,708 Commercial real estate 2,533,346 2,395,692 Construction and land 209,741 240,306 Residential 2,964,042 2,948,973 Home equity 84,432 90,421 Consumer and other 132,073 143,058 Total $ 7,067,151 $ 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: September 30, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 800 $ 2,554 Commercial tax-exempt — — Total commercial and industrial 800 2,554 Commercial real estate — 546 Residential 14,219 7,914 Home equity 2,545 3,031 Consumer and other 1 12 Total $ 17,565 $ 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: September 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 $ 554 $ 2,494 $ 3,048 $ 83 $ 186 $ 531 $ 800 $ 691,181 $ 695,029 Commercial tax-exempt — — — — — — — 448,488 448,488 Commercial real estate 497 — 497 — — — — 2,532,849 2,533,346 Construction and land — — — — — — — 209,741 209,741 Residential — 266 266 9,084 301 4,834 14,219 2,949,557 2,964,042 Home equity 74 279 353 991 — 1,554 2,545 81,534 84,432 Consumer and other 15 — 15 1 — — 1 132,057 132,073 Total $ 1,140 $ 3,039 $ 4,179 $ 10,159 $ 487 $ 6,919 $ 17,565 $ 7,045,407 $ 7,067,151 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: September 30, 2019 By Loan Grade or Nonaccrual Status Pass Special Mention Accruing Classified (1) Nonaccrual Loans Total (In thousands) Commercial and industrial $ 656,012 $ 13,084 $ 25,133 $ 800 $ 695,029 Commercial tax-exempt 441,811 2,625 4,052 — 448,488 Commercial real estate 2,460,408 42,124 30,814 — 2,533,346 Construction and land 209,741 — — — 209,741 Residential 2,946,823 — 3,000 14,219 2,964,042 Home equity 81,308 300 279 2,545 84,432 Consumer and other 132,072 — — 1 132,073 Total $ 6,928,175 $ 58,133 $ 63,278 $ 17,565 $ 7,067,151 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 nine months ended September 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 $ 479 $ 788 n/a $ 1,233 $ 1,256 $ 192 $ 217 Commercial tax-exempt — — n/a — — — — Commercial real estate — — n/a — 55 — 256 Construction and land — — n/a — — — — Residential 14,879 15,140 n/a 15,026 13,321 236 476 Home equity 2,313 2,995 n/a 2,359 2,106 12 13 Consumer and other — — n/a — — — — Subtotal $ 17,671 $ 18,923 n/a 18,618 $ 16,738 440 $ 962 With an allowance recorded: Commercial and industrial $ 538 $ 539 $ 341 491 $ 877 3 $ 23 Commercial tax-exempt — — — — — — — Commercial real estate — — — — — — — Construction and land — — — — — — — Residential 2,059 2,059 712 1,419 1,017 5 18 Home equity 279 279 23 276 626 1 2 Consumer and other — — — — — — — Subtotal $ 2,876 $ 2,877 $ 1,076 $ 2,186 $ 2,520 $ 9 $ 43 Total: Commercial and industrial $ 1,017 $ 1,327 $ 341 $ 1,724 $ 2,133 $ 195 $ 240 Commercial tax-exempt — — — — — — — Commercial real estate — — — — 55 — 256 Construction and land — — — — — — — Residential 16,938 17,199 712 16,445 14,338 241 494 Home equity 2,592 3,274 23 2,635 2,732 13 15 Consumer and other — — — — — — — Total $ 20,547 $ 21,800 $ 1,076 $ 20,804 $ 19,258 $ 449 $ 1,005 _____________________ (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 nine months ended September 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 $ 1,150 $ 2,083 n/a $ 1,617 $ 1,730 $ 33 $ 55 Commercial tax-exempt — — n/a — — — — Commercial real estate 1,625 2,966 n/a 2,526 2,439 583 633 Construction and land — — n/a — 66 — 16 Residential 7,097 7,457 n/a 10,102 10,002 146 335 Home equity — — n/a — 1,056 — 24 Consumer and other — — n/a — — — — Subtotal $ 9,872 $ 12,506 n/a $ 14,245 $ 15,293 $ 762 $ 1,063 With an allowance recorded: Commercial and industrial $ 1,635 $ 1,638 $ 577 $ 625 $ 322 $ 4 $ 6 Commercial tax-exempt — — — — — — — Commercial real estate — — — 4,045 5,314 476 704 Construction and land — — — — — — — Residential 682 681 74 734 787 5 17 Home equity 1,769 1,769 596 1,769 729 1 1 Consumer and other — — — — 13 — 3 Subtotal $ 4,086 $ 4,088 $ 1,247 $ 7,173 $ 7,165 $ 486 $ 731 Total: Commercial and industrial $ 2,785 $ 3,721 $ 577 $ 2,242 $ 2,052 $ 37 $ 61 Commercial tax-exempt — — — — — — — Commercial real estate 1,625 2,966 — 6,571 7,753 1,059 1,337 Construction and land — — — — 66 — 16 Residential 7,779 8,138 74 10,836 10,789 151 352 Home equity 1,769 1,769 596 1,769 1,785 1 25 Consumer and other — — — — 13 — 3 Total $ 13,958 $ 16,594 $ 1,247 $ 21,418 $ 22,458 $ 1,248 $ 1,794 _____________________ (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 nine months ended September 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 (1) 2 3,222 3,227 — — Home equity (1) 1 274 283 — — Consumer and other — — — — — Total 4 $ 3,675 $ 3,689 — $ — As of and for the three and nine months ended September 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- (In thousands, except number of loans) Commercial and industrial 1 $ 179 — $ — — $ — — $ — 1 $ 179 Commercial real estate — — — — — — — — — — Construction and land — — — — — — — — — — Residential — — 2 3,227 — — — — 2 3,227 Home equity — — 1 283 — — — — 1 283 Consumer and other — — — — — — — — — — |
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: September 30, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 14,358 $ 8,024 Commercial tax-exempt 18,711 19,105 Commercial real estate 34,816 60,688 Construction and land 23,133 39,966 Total loan participations serviced for others $ 91,018 $ 127,783 Residential $ 119,389 $ 33,168 Total loans serviced for others $ 119,389 $ 33,168 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Allowance for credit losses on financing receivables | The following tables present a summary of the changes in the allowance for loan losses for the periods indicated: As of and for the three months ended September 30, As of and for the nine months ended September 30, 2019 2018 2019 2018 (In thousands) Allowance for loan losses, beginning of period: Commercial and industrial $ 16,082 $ 12,381 $ 15,912 $ 11,735 Commercial real estate 43,741 45,183 41,934 46,820 Construction and land 4,780 4,613 6,022 4,949 Residential 9,555 9,804 10,026 9,773 Home equity 805 1,336 1,284 835 Consumer and other 104 147 134 630 Total allowance for loan losses, beginning of period 75,067 73,464 75,312 74,742 Loans charged-off: Commercial and industrial (180 ) — (375 ) (339 ) Commercial real estate — — — (135 ) Construction and land — — — — Residential — — — (16 ) Home equity — — (562 ) — Consumer and other (5 ) — (7 ) (39 ) Total charge-offs (185 ) — (944 ) (529 ) Recoveries on loans previously charged-off: Commercial and industrial 275 153 503 387 Commercial real estate 27 820 246 995 Construction and land — — — — Residential — — 100 27 Home equity 6 — 6 1 Consumer and other 2 12 32 168 Total recoveries 310 985 887 1,578 Provision/ (credit) for loan losses: Commercial and industrial 361 1,921 498 2,672 Commercial real estate (762 ) (3,179 ) 826 (4,856 ) Construction and land 6 172 (1,236 ) (164 ) Residential 617 144 46 164 Home equity (57 ) 6 26 506 Consumer and other 2 (13 ) (56 ) (613 ) Total provision/(credit) for loan losses 167 (949 ) 104 (2,291 ) As of and for the three months ended September 30, As of and for the nine months ended September 30, 2019 2018 2019 2018 (In thousands) Allowance for loan losses, end of period: Commercial and industrial 16,538 14,455 16,538 14,455 Commercial real estate 43,006 42,824 43,006 42,824 Construction and land 4,786 4,785 4,786 4,785 Residential 10,172 9,948 10,172 9,948 Home equity 754 1,342 754 1,342 Consumer and other 103 146 103 146 Total allowance for loan losses, end of period $ 75,359 $ 73,500 $ 75,359 $ 73,500 |
Allowance by method of impairment analysis | The following tables present the Company’s allowance for loan losses and loan portfolio as of September 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 September 30, 2019 or December 31, 2018 . September 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 $ 1,017 $ 341 $ 1,142,500 $ 16,197 $ 1,143,517 $ 16,538 Commercial real estate — — 2,533,346 43,006 2,533,346 43,006 Construction and land — — 209,741 4,786 209,741 4,786 Residential 16,938 712 2,947,104 9,460 2,964,042 10,172 Home equity 2,592 23 81,840 731 84,432 754 Consumer and other — — 132,073 103 132,073 103 Total $ 20,547 $ 1,076 $ 7,046,604 $ 74,283 $ 7,067,151 $ 75,359 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) | 9 Months Ended |
Sep. 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 September 30, 2019 and December 31, 2018 : September 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 $ — Other liabilities $ — Other assets $ 553 Other liabilities $ — Derivatives not designated as hedging instruments: Interest rate swaps Other assets 47,851 Other liabilities 48,891 Other assets 21,889 Other liabilities 22,385 Risk participation agreements Other assets 74 Other liabilities 344 Other assets 2 Other liabilities 152 Total $ 47,925 $ 49,235 $ 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 nine months ended September 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 September 30, Three months ended September 30, 2019 2018 2019 2018 (In thousands) (In thousands) Interest rate swaps $ 1 $ (193 ) Interest expense $ 6 $ 101 Total $ 1 $ (193 ) $ 6 $ 101 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 Nine months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) (In thousands) Interest rate swaps $ (46 ) $ 818 Interest expense $ 508 $ 385 Total $ (46 ) $ 818 $ 508 $ 385 ____________________ (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 Statement of Operations for the three and nine months ended September 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 September 30, Nine months ended September 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 $ 6 $ 101 $ 508 $ 385 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 $ 6 $ 101 $ 508 $ 385 |
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 nine months ended September 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 September 30, Nine months ended September 30, 2019 2018 2019 2018 (In thousands) Interest rate swaps Other income/ (expense) $ (289 ) $ 8 $ (544 ) $ (39 ) Risk participation agreements Other income/ (expense) (11 ) 18 (120 ) 238 Total $ (300 ) $ 26 $ (664 ) $ 199 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 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: Nine months ended September 30, 2019 2018 (In thousands) Income from continuing operations: Income before income taxes $ 74,852 $ 77,214 Income tax expense 15,803 28,886 Net income from continuing operations $ 59,049 $ 48,328 Effective tax rate, continuing operations 21.1 % 37.4 % 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 $ 265 $ 2,942 Income tax expense — — Net income attributable to noncontrolling interests $ 265 $ 2,942 Effective tax rate, noncontrolling interests — % — % Income attributable to the Company Income before income taxes $ 74,587 $ 76,660 Income tax expense 15,803 29,578 Net income attributable to the Company $ 58,784 $ 47,082 Effective tax rate attributable to the Company 21.2 % 38.6 % |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 9 Months Ended |
Sep. 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 Nine months ended September 30, 2019 September 30, 2019 Redeemable noncontrolling interests Redeemable noncontrolling interests (In thousands) Noncontrolling interests at beginning of period $ 1,786 $ 2,526 Net income attributable to noncontrolling interests 96 265 Distributions (96 ) (265 ) Purchases/ (sales) of ownership interests — 12 Amortization of equity compensation 10 36 Adjustments to fair value (315 ) (1,093 ) Noncontrolling interests at end of period $ 1,481 $ 1,481 Three months ended Nine months ended September 30, 2018 September 30, 2018 Redeemable noncontrolling interests Noncontrolling interests Redeemable noncontrolling interests Noncontrolling interests (In thousands) Noncontrolling interests at beginning of period $ 10,747 $ 1,996 $ 17,461 $ 5,186 Net income attributable to noncontrolling interests 711 213 2,202 740 Distributions (687 ) (203 ) (2,136 ) (712 ) Purchases/ (sales) of ownership interests — — (6,353 ) (3,051 ) Amortization of equity compensation 125 — 373 161 Adjustments to fair value 790 203 139 (115 ) Noncontrolling interests at end of period $ 11,686 $ 2,209 $ 11,686 $ 2,209 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2019 and 2018 : Description of component of accumulated other comprehensive income/ (loss) Three months ended September 30, Nine months ended September 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) $ 6 $ 101 $ 508 $ 385 Interest (expense) Tax (expense)/ benefit (2 ) (29 ) (148 ) (112 ) Income tax (expense)/ benefit Net $ 4 $ 72 $ 360 $ 273 Net income/ (loss) attributable to the Company Total reclassifications for the period, net of tax $ 4 $ 72 $ 360 $ 273 |
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 (18,888 ) 574 1 (18,313 ) Reclassified from other comprehensive income/ (loss) — (273 ) — (273 ) Other comprehensive income/ (loss), net (18,888 ) 301 1 (18,586 ) Reclassification from the adoption of ASUs 2017-12 and 2016-01 $ (339 ) $ 5 $ — $ (334 ) Balance at September 30, 2018 $ (27,367 ) $ 638 $ (849 ) $ (27,578 ) Balance at December 31, 2018 $ (17,556 ) $ 391 $ (554 ) $ (17,719 ) Other comprehensive income/ (loss) before reclassifications 27,469 (31 ) — 27,438 Reclassified from other comprehensive income/ (loss) — (360 ) — (360 ) Other comprehensive income/ (loss), net 27,469 (391 ) — 27,078 Balance at September 30, 2019 $ 9,913 $ — $ (554 ) $ 9,359 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 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 Costs paid (1,156 ) — (1,156 ) Accrued charges at September 30, 2019 $ 1,036 $ 790 $ 1,826 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 — $ — $ — Costs incurred 5,763 — 5,763 Accrued charges at September 30, 2018 $ 5,763 $ — $ 5,763 |
Lease Accounting (Tables)
Lease Accounting (Tables) | 9 Months Ended |
Sep. 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 September 30, Nine months ended September 30, 2019 2019 (In thousands) Lease cost Operating lease cost $ 4,866 $ 14,392 Short-term lease cost 12 41 Variable lease cost 143 147 Less: Sublease income (27 ) (73 ) Total operating lease cost $ 4,994 $ 14,507 Nine months ended September 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 $ 15,013 ROU assets obtained in exchange for new operating lease liabilities $ 10,510 Weighted-average remaining lease term for operating leases 8.2 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 September 30, 2019 : September 30, 2019 (In thousands) Remainder of 2019 $ 5,084 2020 20,224 2021 20,406 2022 20,360 2023 19,575 Thereafter 57,005 Total future minimum lease payments 142,654 Less: Amounts representing interest (19,855 ) Present value of net future minimum lease payments $ 122,799 |
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 | 1 Months Ended | 8 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($)segmentmarket | Aug. 31, 2019segment | Sep. 30, 2019USD ($)market | Sep. 30, 2018USD ($) | Jun. 30, 2019segment | Jun. 30, 2019affiliate | Jan. 01, 2019USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Number of reportable segments | segment | 2 | 3 | |||||
Number of affiliates | 2 | 2 | |||||
Purchases, adjustment, securities available for sale | $ 44,537 | $ 38,042 | |||||
Sales, adjustment, securities available for sale | 36,985 | 51,757 | |||||
Lease liabilities | $ 122,799 | 122,799 | |||||
ROU assets | $ 107,045 | $ 107,045 | |||||
Private Banking | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Number of geographic markets | market | 3 | 3 | |||||
ASU 2016-02 | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Lease liabilities | $ 124,100 | ||||||
ROU assets | $ 108,500 | ||||||
Restatement Adjustment | |||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||
Purchases, adjustment, securities available for sale | 38,000 | ||||||
Sales, adjustment, securities available for sale | $ 51,800 |
Earnings Per Share Basic (Detai
Earnings Per Share Basic (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic earnings per share - Numerator: | ||||
Net income from continuing operations | $ 20,058 | $ 18,886 | $ 59,049 | $ 48,328 |
Less: Net income attributable to noncontrolling interests | 96 | 924 | 265 | 2,942 |
Net income from continuing operations attributable to the Company | 19,962 | 17,962 | 58,784 | 45,386 |
Decrease/ (increase) in noncontrolling interests’ redemption values | 304 | (829) | 1,045 | (391) |
Dividends on preferred stock | 0 | 0 | 0 | (3,985) |
Total adjustments to income attributable to common shareholders | 304 | (829) | 1,045 | (4,376) |
Net income from continuing operations attributable to common shareholders, treasury stock method | 20,266 | 17,133 | 59,829 | 41,010 |
Net income from discontinued operations | 0 | 0 | 0 | 1,696 |
Net income attributable to common shareholders, treasury stock method | $ 20,266 | $ 17,133 | $ 59,829 | $ 42,706 |
Basic earnings per share - Denominator: | ||||
Weighted average basic common shares outstanding (in shares) | 83,631,403 | 84,017,284 | 83,495,361 | 83,544,754 |
Per share data - Basic earnings per share from: | ||||
Continuing operations (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.72 | $ 0.49 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.02 |
Total attributable to common shareholders (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.72 | $ 0.51 |
Earnings Per Share Diluted (Det
Earnings Per Share Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Diluted earnings per share - Numerator: | ||||
Net income from continuing operations attributable to common shareholders, after assumed dilution | $ 20,266 | $ 17,133 | $ 59,829 | $ 41,010 |
Net income from discontinued operations | 0 | 0 | 0 | 1,696 |
Net income attributable to common shareholders, after assumed dilution | $ 20,266 | $ 17,133 | $ 59,829 | $ 42,706 |
Diluted earnings per share - Denominator: | ||||
Weighted average basic common shares outstanding (in shares) | 83,631,403 | 84,017,284 | 83,495,361 | 83,544,754 |
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) | 325,305 | 853,906 | 507,920 | 1,052,855 |
Warrants to purchase common stock (in shares) | 0 | 627,378 | 0 | 656,686 |
Dilutive common shares (in shares) | 325,305 | 1,481,284 | 507,920 | 1,709,541 |
Weighted average diluted common shares outstanding (in shares) | 83,956,708 | 85,498,568 | 84,003,281 | 85,254,295 |
Per share data - Diluted earnings per share from: | ||||
Continuing operations (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.71 | $ 0.48 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.02 |
Total attributable to common shareholders (in dollars per share) | 0.24 | 0.20 | 0.71 | 0.50 |
Dividends per share declared and paid on common stock (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.36 | $ 0.36 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 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) | 808 | 408 | 760 | 226 |
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) | 808 | 408 | 760 | 226 |
Reportable Segments Narrative (
Reportable Segments Narrative (Details) | 1 Months Ended | 8 Months Ended | ||
Sep. 30, 2019segmentmarket | Aug. 31, 2019segment | Jun. 30, 2019segment | Jun. 30, 2019affiliate | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 2 | 3 | ||
Number of affiliates | 2 | 2 | ||
Private Banking | ||||
Segment Reporting Information [Line Items] | ||||
Number of geographic markets | market | 3 |
Reportable Segments Reconciliat
Reportable Segments Reconciliation of Reportable Segment Items (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||
Net interest income | $ 56,153,000 | $ 59,641,000 | $ 171,951,000 | $ 174,569,000 | |||||
Fees and other income | 25,126,000 | 32,314,000 | 74,754,000 | 104,152,000 | |||||
Total revenue | 81,279,000 | 91,955,000 | 246,705,000 | 278,721,000 | |||||
Provision/ (credit) for loan losses | 167,000 | (949,000) | 104,000 | (2,291,000) | |||||
Operating expense | 55,537,000 | 68,557,000 | 171,749,000 | 203,798,000 | |||||
Income before income taxes | 25,575,000 | 24,347,000 | 74,852,000 | 77,214,000 | |||||
Income tax expense | 5,517,000 | 5,461,000 | 15,803,000 | 28,886,000 | |||||
Net income from continuing operations | 20,058,000 | 18,886,000 | 59,049,000 | 48,328,000 | |||||
Noncontrolling interests | 96,000 | 924,000 | 265,000 | 2,942,000 | |||||
Discontinued operations | 0 | 0 | 0 | 1,696,000 | |||||
Net income attributable to the Company | 19,962,000 | 17,962,000 | 58,784,000 | 47,082,000 | |||||
Assets | 8,690,944,000 | 8,375,840,000 | 8,690,944,000 | 8,375,840,000 | $ 8,494,625,000 | ||||
Amortization of intangibles | 671,000 | 750,000 | 2,015,000 | 2,249,000 | |||||
Depreciation | 2,570,000 | 2,916,000 | 8,409,000 | 7,579,000 | |||||
Restructuring charges | 0 | 5,763,000 | 1,646,000 | 5,763,000 | |||||
Operating Segments | Private Banking | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net interest income | 57,058,000 | 60,551,000 | 174,814,000 | 177,129,000 | |||||
Fees and other income | 3,403,000 | 3,337,000 | 9,465,000 | 8,637,000 | |||||
Total revenue | 60,461,000 | 63,888,000 | 184,279,000 | 185,766,000 | |||||
Provision/ (credit) for loan losses | 167,000 | (949,000) | 104,000 | (2,291,000) | |||||
Operating expense | 38,134,000 | 44,706,000 | 117,256,000 | 124,003,000 | |||||
Income before income taxes | 22,160,000 | 20,131,000 | 66,919,000 | 64,054,000 | |||||
Income tax expense | 4,212,000 | 4,469,000 | 13,520,000 | 13,063,000 | |||||
Net income from continuing operations | 17,948,000 | 15,662,000 | 53,399,000 | 50,991,000 | |||||
Net income attributable to the Company | 17,948,000 | 15,662,000 | 53,399,000 | 50,991,000 | |||||
Assets | 8,617,207,000 | 8,292,901,000 | 8,617,207,000 | 8,292,901,000 | |||||
Depreciation | 2,229,000 | 2,398,000 | 7,271,000 | 6,013,000 | |||||
Operating Segments | Wealth Management and Trust | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net interest income | 99,000 | 98,000 | 309,000 | 222,000 | |||||
Fees and other income | 19,106,000 | 19,769,000 | 57,188,000 | 59,108,000 | |||||
Total revenue | 19,205,000 | 19,867,000 | 57,497,000 | 59,330,000 | |||||
Operating expense | 13,888,000 | 16,434,000 | 43,864,000 | 49,981,000 | |||||
Income before income taxes | 5,317,000 | 3,433,000 | 13,633,000 | 9,349,000 | |||||
Income tax expense | 1,751,000 | 1,130,000 | 4,465,000 | 3,019,000 | |||||
Net income from continuing operations | 3,566,000 | 2,303,000 | 9,168,000 | 6,330,000 | |||||
Net income attributable to the Company | 3,566,000 | 2,303,000 | 9,168,000 | 6,330,000 | |||||
Assets | 143,326,000 | 127,229,000 | 143,326,000 | 127,229,000 | |||||
Amortization of intangibles | 671,000 | 701,000 | 2,015,000 | 2,103,000 | |||||
Depreciation | 290,000 | 409,000 | 991,000 | 1,230,000 | |||||
Holding Company and Eliminations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net interest income | (1,004,000) | (1,008,000) | (3,172,000) | (2,782,000) | |||||
Fees and other income | 2,617,000 | 9,208,000 | 8,101,000 | 36,407,000 | |||||
Total revenue | 1,613,000 | 8,200,000 | 4,929,000 | 33,625,000 | |||||
Operating expense | 3,515,000 | 7,417,000 | 10,629,000 | 29,814,000 | |||||
Income before income taxes | (1,902,000) | 783,000 | (5,700,000) | 3,811,000 | |||||
Income tax expense | (446,000) | (138,000) | (2,182,000) | 12,804,000 | |||||
Net income from continuing operations | (1,456,000) | 921,000 | (3,518,000) | (8,993,000) | |||||
Noncontrolling interests | 96,000 | 924,000 | 265,000 | 2,942,000 | |||||
Discontinued operations | 0 | 0 | 0 | 1,696,000 | |||||
Net income attributable to the Company | (1,552,000) | (3,000) | (3,783,000) | (10,239,000) | |||||
Assets | (69,589,000) | (44,290,000) | (69,589,000) | (44,290,000) | |||||
Amortization of intangibles | $ 0 | $ 49,000 | 0 | 146,000 | |||||
Depreciation | $ 147,000 | $ 51,000 | $ 336,000 | $ 109,000 | |||||
Interest expense | Operating Segments | Private Banking | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Restructuring charges | 1,300,000 | 5,200,000 | |||||||
Interest expense | Operating Segments | Wealth Management and Trust | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Restructuring charges | $ 400,000 | $ 600,000 |
Investments Schedule of Availab
Investments Schedule of Available-for-sale and Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available-for-sale securities at fair value: | ||
Amortized Cost | $ 922,112 | $ 1,018,774 |
Unrealized Gains | 16,489 | 2,437 |
Unrealized Losses | (3,063) | (27,146) |
Fair Value | 935,538 | 994,065 |
Held-to-maturity securities at amortized cost: | ||
Amortized Cost | 51,379 | 70,438 |
Unrealized Gains | 33 | 2 |
Unrealized Losses | (397) | (1,845) |
Fair Value | 51,015 | 68,595 |
Equity securities at fair value: | ||
Amortized Cost | 21,780 | 14,228 |
Fair Value | 21,780 | 14,228 |
U.S. government and agencies | ||
Available-for-sale securities at fair value: | ||
Amortized Cost | 19,953 | 30,043 |
Unrealized Gains | 104 | 0 |
Unrealized Losses | 0 | (929) |
Fair Value | 20,057 | 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 | 155,081 | 211,655 |
Unrealized Gains | 1,483 | 0 |
Unrealized Losses | (8) | (3,952) |
Fair Value | 156,556 | 207,703 |
Municipal bonds | ||
Available-for-sale securities at fair value: | ||
Amortized Cost | 314,970 | 309,837 |
Unrealized Gains | 13,055 | 2,223 |
Unrealized Losses | (10) | (3,101) |
Fair Value | 328,015 | 308,959 |
Mortgage-backed securities | ||
Available-for-sale securities at fair value: | ||
Amortized Cost | 432,108 | 467,239 |
Unrealized Gains | 1,847 | 214 |
Unrealized Losses | (3,045) | (19,164) |
Fair Value | 430,910 | 448,289 |
Held-to-maturity securities at amortized cost: | ||
Amortized Cost | 51,379 | 60,540 |
Unrealized Gains | 33 | 0 |
Unrealized Losses | (397) | (1,845) |
Fair Value | 51,015 | 58,695 |
Money market mutual funds | ||
Equity securities at fair value: | ||
Amortized Cost | 21,780 | 14,228 |
Fair Value | $ 21,780 | $ 14,228 |
Investments Maturities of AFS S
Investments Maturities of AFS Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Within one year | $ 12,614 | |
After one, but within five years | 290,921 | |
After five, but within ten years | 250,045 | |
Greater than ten years | 368,532 | |
Amortized Cost | 922,112 | $ 1,018,774 |
Fair Value | ||
Within one year | 12,647 | |
After one, but within five years | 292,357 | |
After five, but within ten years | 253,765 | |
Greater than ten years | 376,769 | |
Total | $ 935,538 | $ 994,065 |
Investments Maturities of HTM S
Investments Maturities of HTM Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
After five, but within ten years | $ 41,912 | |
Greater than ten years | 9,467 | |
Amortized Cost | 51,379 | $ 70,438 |
Fair Value | ||
After five, but within ten years | 41,593 | |
Greater than ten years | 9,422 | |
Total | $ 51,015 | $ 68,595 |
Investments Realized Gains and
Investments Realized Gains and Losses from Sales of AFS Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2018 | ||
Gain (Loss) on Securities [Line Items] | ||||||
Proceeds from sales | $ 0 | $ 16,231 | $ 0 | $ 51,781 | ||
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 | $ 0 | $ 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 | Sep. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Fair Value | ||
Less than 12 months | $ 78,730 | $ 27,863 |
12 months or longer | 206,795 | 800,914 |
Total | 285,525 | 828,777 |
Unrealized Losses | ||
Less than 12 months | (244) | (139) |
12 months or longer | (2,819) | (27,007) |
Less than 12 months | $ (3,063) | $ (27,146) |
Number of securities | security | 86,000 | 232 |
Fair Value | ||
Less than 12 months | $ 5,608 | $ 0 |
12 months or longer | 32,425 | 58,695 |
Total | 38,033 | 58,695 |
Unrealized Losses | ||
Less than 12 months | (21) | 0 |
12 months or longer | (376) | (1,845) |
Total | $ (397) | $ (1,845) |
Number of securities | security | 13,000 | 16 |
U.S. government and agencies | ||
Fair Value | ||
Less than 12 months | $ 0 | $ 0 |
12 months or longer | 0 | 29,114 |
Total | 0 | 29,114 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | 0 | (929) |
Less than 12 months | $ 0 | $ (929) |
Number of securities | security | 0 | 5 |
Government-sponsored entities | ||
Fair Value | ||
Less than 12 months | $ 6,735 | $ 0 |
12 months or longer | 0 | 207,703 |
Total | 6,735 | 207,703 |
Unrealized Losses | ||
Less than 12 months | (8) | 0 |
12 months or longer | 0 | (3,952) |
Less than 12 months | $ (8) | $ (3,952) |
Number of securities | security | 4,000 | 32 |
Municipal bonds | ||
Fair Value | ||
Less than 12 months | $ 8,506 | $ 25,394 |
12 months or longer | 0 | 130,209 |
Total | 8,506 | 155,603 |
Unrealized Losses | ||
Less than 12 months | (10) | (128) |
12 months or longer | 0 | (2,973) |
Less than 12 months | $ (10) | $ (3,101) |
Number of securities | security | 3,000 | 85 |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | $ 63,489 | $ 2,469 |
12 months or longer | 206,795 | 433,888 |
Total | 270,284 | 436,357 |
Unrealized Losses | ||
Less than 12 months | (226) | (11) |
12 months or longer | (2,819) | (19,153) |
Less than 12 months | $ (3,045) | $ (19,164) |
Number of securities | security | 79,000 | 110 |
Fair Value | ||
Less than 12 months | $ 5,608 | $ 0 |
12 months or longer | 32,425 | 58,695 |
Total | 38,033 | 58,695 |
Unrealized Losses | ||
Less than 12 months | (21) | 0 |
12 months or longer | (376) | (1,845) |
Total | $ (397) | $ (1,845) |
Number of securities | security | 13,000 | 16 |
Investments Other Investment Di
Investments Other Investment Disclosures (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Amortization method qualified affordable housing project investments | $ 65.4 | $ 54.4 |
Fair Value Measurements Recurri
Fair Value Measurements Recurring Basis (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Available-for-sale securities: | $ 935,538,000 | $ 994,065,000 |
Equity securities | 21,780,000 | 14,228,000 |
U.S. government and agencies | ||
Assets: | ||
Available-for-sale securities: | 20,057,000 | 29,114,000 |
Government-sponsored entities | ||
Assets: | ||
Available-for-sale securities: | 156,556,000 | 207,703,000 |
Municipal bonds | ||
Assets: | ||
Available-for-sale securities: | 328,015,000 | 308,959,000 |
Mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities: | 430,910,000 | 448,289,000 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Available-for-sale securities: | 935,538,000 | 994,065,000 |
Trading securities held in the “rabbi trust” | 6,482,000 | 6,839,000 |
Liabilities: | ||
Deferred compensation “rabbi trust” | 6,482,000 | 6,839,000 |
Fair Value, Measurements, Recurring | U.S. government and agencies | ||
Assets: | ||
Available-for-sale securities: | 20,057,000 | 29,114,000 |
Fair Value, Measurements, Recurring | Government-sponsored entities | ||
Assets: | ||
Available-for-sale securities: | 156,556,000 | 207,703,000 |
Fair Value, Measurements, Recurring | Municipal bonds | ||
Assets: | ||
Available-for-sale securities: | 328,015,000 | 308,959,000 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities: | 430,910,000 | 448,289,000 |
Fair Value, Measurements, Recurring | Interest rate customer swaps | ||
Assets: | ||
Derivatives | 47,851,000 | 21,889,000 |
Liabilities: | ||
Derivatives | 48,891,000 | 22,385,000 |
Fair Value, Measurements, Recurring | Interest rate swaps | ||
Assets: | ||
Derivatives | 553,000 | |
Fair Value, Measurements, Recurring | Risk participation agreements | ||
Assets: | ||
Derivatives | 74,000 | 2,000 |
Liabilities: | ||
Derivatives | 344,000 | 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 | 21,780,000 | 14,228,000 |
Trading securities held in the “rabbi trust” | 6,482,000 | 6,839,000 |
Liabilities: | ||
Deferred compensation “rabbi trust” | 6,482,000 | 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 | |
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: | 935,538,000 | 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: | 20,057,000 | 29,114,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Government-sponsored entities | ||
Assets: | ||
Available-for-sale securities: | 156,556,000 | 207,703,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Municipal bonds | ||
Assets: | ||
Available-for-sale securities: | 328,015,000 | 308,959,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities: | 430,910,000 | 448,289,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Interest rate customer swaps | ||
Assets: | ||
Derivatives | 47,851,000 | 21,889,000 |
Liabilities: | ||
Derivatives | 48,891,000 | 22,385,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Interest rate swaps | ||
Assets: | ||
Derivatives | 553,000 | |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Risk participation agreements | ||
Assets: | ||
Derivatives | 74,000 | 2,000 |
Liabilities: | ||
Derivatives | 344,000 | 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 | |
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) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($)security |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities: | $ 935,538,000 | $ 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: | 935,538,000 | 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 | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 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 | $ 7,006,120 | $ 7,006,120 | $ 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 | 7,006,120 | 7,006,120 | $ 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 | 729 | $ 2,005 | 729 | $ 2,005 | |
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 | 729 | 2,005 | 729 | 2,005 | |
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 | $ (388) | $ (440) | $ 204 | $ (1,367) |
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 | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Substandard | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair Value | $ 729 | $ 2,005 |
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 | 0.06 | 0.06 |
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 | 0.06 | 0.23 |
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 |
Fair Value Measurements Not Mea
Fair Value Measurements Not Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
FINANCIAL ASSETS: | ||
Investment securities held-to-maturity | $ 51,015 | $ 68,595 |
Book Value | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 78,010 | 127,259 |
Investment securities held-to-maturity | 51,379 | 70,438 |
Loans held for sale | 6,658 | 2,812 |
Loans, net | 6,991,792 | 6,817,846 |
Other financial assets | 77,614 | 78,730 |
FINANCIAL LIABILITIES: | ||
Deposits | 6,658,242 | 6,781,170 |
Securities sold under agreements to repurchase | 48,860 | 36,928 |
Federal funds purchased | 230,000 | 250,000 |
Federal Home Loan Bank borrowings | 570,904 | 420,144 |
Junior subordinated debentures | 106,363 | 106,363 |
Other financial liabilities | 2,730 | 2,001 |
Fair Value | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 78,010 | 127,259 |
Investment securities held-to-maturity | 51,015 | 68,595 |
Loans held for sale | 6,708 | 2,837 |
Loans, net | 7,006,120 | 6,734,216 |
Other financial assets | 77,614 | 78,730 |
FINANCIAL LIABILITIES: | ||
Deposits | 6,658,538 | 6,777,928 |
Securities sold under agreements to repurchase | 48,860 | 36,928 |
Federal funds purchased | 230,000 | 250,000 |
Federal Home Loan Bank borrowings | 571,606 | 417,092 |
Junior subordinated debentures | 96,363 | 96,363 |
Other financial liabilities | 2,730 | 2,001 |
Fair Value | Quoted prices in active markets for identical assets (Level 1) | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 78,010 | 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 | 51,015 | 68,595 |
Loans held for sale | 6,708 | 2,837 |
Loans, net | 0 | 0 |
Other financial assets | 77,614 | 78,730 |
FINANCIAL LIABILITIES: | ||
Deposits | 6,658,538 | 6,777,928 |
Securities sold under agreements to repurchase | 48,860 | 36,928 |
Federal funds purchased | 230,000 | 250,000 |
Federal Home Loan Bank borrowings | 571,606 | 417,092 |
Junior subordinated debentures | 0 | 0 |
Other financial liabilities | 2,730 | 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 | 7,006,120 | 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 | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 7,067,151 | $ 6,893,158 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 695,029 | 623,037 |
Commercial tax-exempt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 448,488 | 451,671 |
Total commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,143,517 | 1,074,708 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,533,346 | 2,395,692 |
Construction and land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 209,741 | 240,306 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,964,042 | 2,948,973 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 84,432 | 90,421 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 132,073 | $ 143,058 |
Loan Portfolio and Credit Qua_4
Loan Portfolio and Credit Quality Nonaccrual Loans by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | $ 17,565 | $ 14,057 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | 800 | 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 | 800 | 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 | 14,219 | 7,914 |
Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | 2,545 | 3,031 |
Consumer and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | $ 1 | $ 12 |
Loan Portfolio and Credit Qua_5
Loan Portfolio and Credit Quality Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)loan | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of portfolio loans | $ 92,304 | $ 0 | ||
Loans pledged in blanket lien agreement | $ 2,600,000 | 2,600,000 | $ 2,600,000 | |
Loans pledged as collateral | 437,200 | 437,200 | 540,000 | |
TDRs | 9,500 | 9,500 | 8,000 | |
Deferred income | 8,400 | 8,400 | 8,500 | |
Performing Financial Instruments | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
TDRs | 6,900 | $ 6,900 | $ 3,800 | |
Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of portfolio loans | 92,400 | |||
Gain on sale of loans | $ 800 | |||
Residential | 90 Days or Greater Past Due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of loans | loan | 0 | 0 | 0 |
Loan Portfolio and Credit Qua_6
Loan Portfolio and Credit Quality Loans by Past Due Status (Details) $ in Thousands | Sep. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan |
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | $ 4,179 | $ 22,299 |
Nonaccrual Loans | 17,565 | 14,057 |
Current Accruing Loans | 7,045,407 | 6,856,802 |
Total Loans Receivable | 7,067,151 | 6,893,158 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 1,140 | 16,540 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 3,039 | 5,759 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 10,159 | 3,626 |
30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 487 | 768 |
90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 6,919 | 9,663 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 3,048 | 9,794 |
Nonaccrual Loans | 800 | 2,554 |
Current Accruing Loans | 691,181 | 610,689 |
Total Loans Receivable | 695,029 | 623,037 |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 554 | 9,794 |
Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 2,494 | 0 |
Commercial and industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 83 | 979 |
Commercial and industrial | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 186 | 0 |
Commercial and industrial | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 531 | 1,575 |
Commercial tax-exempt | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Nonaccrual Loans | 0 | 0 |
Current Accruing Loans | 448,488 | 451,671 |
Total Loans Receivable | 448,488 | 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 | 497 | 0 |
Nonaccrual Loans | 0 | 546 |
Current Accruing Loans | 2,532,849 | 2,395,146 |
Total Loans Receivable | 2,533,346 | 2,395,692 |
Commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 497 | 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 | 209,741 | 240,306 |
Total Loans Receivable | 209,741 | 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 | 266 | 6,843 |
Nonaccrual Loans | 14,219 | 7,914 |
Current Accruing Loans | 2,949,557 | 2,934,216 |
Total Loans Receivable | 2,964,042 | 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 | 266 | 366 |
Residential | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 9,084 | 2,639 |
Residential | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 301 | 716 |
Residential | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 4,834 | $ 4,559 |
Number of loans | loan | 0 | 0 |
Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | $ 353 | $ 602 |
Nonaccrual Loans | 2,545 | 3,031 |
Current Accruing Loans | 81,534 | 86,788 |
Total Loans Receivable | 84,432 | 90,421 |
Home equity | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 74 | 252 |
Home equity | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 279 | 350 |
Home equity | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 991 | 0 |
Home equity | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 48 |
Home equity | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 1,554 | 2,983 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 15 | 5,060 |
Nonaccrual Loans | 1 | 12 |
Current Accruing Loans | 132,057 | 137,986 |
Total Loans Receivable | 132,073 | 143,058 |
Consumer and other | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 15 | 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 | 1 | 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 | $ 0 | $ 0 |
Loan Portfolio and Credit Qua_7
Loan Portfolio and Credit Quality Loans by Grade or Nonaccrual Status (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 7,067,151 | $ 6,893,158 |
Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 6,928,175 | 6,746,478 |
Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 58,133 | 78,528 |
Substandard | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 63,278 | 54,095 |
Substandard | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 17,565 | 14,057 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 695,029 | 623,037 |
Commercial and industrial | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 656,012 | 581,278 |
Commercial and industrial | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 13,084 | 16,213 |
Commercial and industrial | Substandard | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 25,133 | 22,992 |
Commercial and industrial | Substandard | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 800 | 2,554 |
Commercial tax-exempt | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 448,488 | 451,671 |
Commercial tax-exempt | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 441,811 | 444,835 |
Commercial tax-exempt | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,625 | 2,785 |
Commercial tax-exempt | Substandard | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 4,052 | 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 | 2,533,346 | 2,395,692 |
Commercial real estate | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,460,408 | 2,314,223 |
Commercial real estate | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 42,124 | 53,871 |
Commercial real estate | Substandard | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 30,814 | 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 | 209,741 | 240,306 |
Construction and land | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 209,741 | 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 | 2,964,042 | 2,948,973 |
Residential | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,946,823 | 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 | 14,219 | 7,914 |
Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 84,432 | 90,421 |
Home equity | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 81,308 | 87,390 |
Home equity | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 300 | 0 |
Home equity | Substandard | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 279 | 0 |
Home equity | Substandard | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,545 | 3,031 |
Consumer and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 132,073 | 143,058 |
Consumer and other | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 132,072 | 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 | $ 1 | $ 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 | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Recorded Investment | |||||
With no related allowance recorded: | $ 17,671 | $ 9,872 | $ 17,671 | $ 9,872 | $ 11,374 |
With an allowance recorded: | 2,876 | 4,086 | 2,876 | 4,086 | 4,269 |
Total: | 20,547 | 13,958 | 20,547 | 13,958 | 15,643 |
Unpaid Principal Balance | |||||
With no related allowance recorded: | 18,923 | 12,506 | 18,923 | 12,506 | 13,051 |
With an allowance recorded: | 2,877 | 4,088 | 2,877 | 4,088 | 4,471 |
Total: | 21,800 | 16,594 | 21,800 | 16,594 | 17,522 |
Related Allowance | 1,076 | 1,247 | 1,076 | 1,247 | 1,235 |
Average Recorded Investment | |||||
With no related allowance recorded: | 18,618 | 14,245 | 16,738 | 15,293 | 14,345 |
With an allowance recorded: | 2,186 | 7,173 | 2,520 | 7,165 | 6,472 |
Total: | 20,804 | 21,418 | 19,258 | 22,458 | 20,817 |
Interest Income Recognized while Impaired | |||||
With no related allowance recorded: | 440 | 762 | 962 | 1,063 | 2,061 |
With an allowance recorded: | 9 | 486 | 43 | 731 | 756 |
Total: | 449 | 1,248 | 1,005 | 1,794 | 2,817 |
Commercial and industrial | |||||
Recorded Investment | |||||
With no related allowance recorded: | 479 | 1,150 | 479 | 1,150 | 1,435 |
With an allowance recorded: | 538 | 1,635 | 538 | 1,635 | 1,770 |
Total: | 1,017 | 2,785 | 1,017 | 2,785 | 3,205 |
Unpaid Principal Balance | |||||
With no related allowance recorded: | 788 | 2,083 | 788 | 2,083 | 2,397 |
With an allowance recorded: | 539 | 1,638 | 539 | 1,638 | 1,972 |
Total: | 1,327 | 3,721 | 1,327 | 3,721 | 4,369 |
Related Allowance | 341 | 577 | 341 | 577 | 598 |
Average Recorded Investment | |||||
With no related allowance recorded: | 1,233 | 1,617 | 1,256 | 1,730 | 1,614 |
With an allowance recorded: | 491 | 625 | 877 | 322 | 631 |
Total: | 1,724 | 2,242 | 2,133 | 2,052 | 2,245 |
Interest Income Recognized while Impaired | |||||
With no related allowance recorded: | 192 | 33 | 217 | 55 | 69 |
With an allowance recorded: | 3 | 4 | 23 | 6 | 15 |
Total: | 195 | 37 | 240 | 61 | 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 | 1,625 | 0 | 1,625 | 546 |
With an allowance recorded: | 0 | 0 | 0 | 0 | 0 |
Total: | 0 | 1,625 | 0 | 1,625 | 546 |
Unpaid Principal Balance | |||||
With no related allowance recorded: | 0 | 2,966 | 0 | 2,966 | 900 |
With an allowance recorded: | 0 | 0 | 0 | 0 | 0 |
Total: | 0 | 2,966 | 0 | 2,966 | 900 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment | |||||
With no related allowance recorded: | 0 | 2,526 | 55 | 2,439 | 2,002 |
With an allowance recorded: | 0 | 4,045 | 0 | 5,314 | 4,087 |
Total: | 0 | 6,571 | 55 | 7,753 | 6,089 |
Interest Income Recognized while Impaired | |||||
With no related allowance recorded: | 0 | 583 | 256 | 633 | 1,544 |
With an allowance recorded: | 0 | 476 | 0 | 704 | 705 |
Total: | 0 | 1,059 | 256 | 1,337 | 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 | 0 | 0 | 66 | 50 |
With an allowance recorded: | 0 | 0 | 0 | 0 | 0 |
Total: | 0 | 0 | 0 | 66 | 50 |
Interest Income Recognized while Impaired | |||||
With no related allowance recorded: | 0 | 0 | 0 | 16 | 16 |
With an allowance recorded: | 0 | 0 | 0 | 0 | 0 |
Total: | 0 | 0 | 0 | 16 | 16 |
Residential | |||||
Recorded Investment | |||||
With no related allowance recorded: | 14,879 | 7,097 | 14,879 | 7,097 | 8,403 |
With an allowance recorded: | 2,059 | 682 | 2,059 | 682 | 780 |
Total: | 16,938 | 7,779 | 16,938 | 7,779 | 9,183 |
Unpaid Principal Balance | |||||
With no related allowance recorded: | 15,140 | 7,457 | 15,140 | 7,457 | 8,764 |
With an allowance recorded: | 2,059 | 681 | 2,059 | 681 | 780 |
Total: | 17,199 | 8,138 | 17,199 | 8,138 | 9,544 |
Related Allowance | 712 | 74 | 712 | 74 | 75 |
Average Recorded Investment | |||||
With no related allowance recorded: | 15,026 | 10,102 | 13,321 | 10,002 | 9,638 |
With an allowance recorded: | 1,419 | 734 | 1,017 | 787 | 785 |
Total: | 16,445 | 10,836 | 14,338 | 10,789 | 10,423 |
Interest Income Recognized while Impaired | |||||
With no related allowance recorded: | 236 | 146 | 476 | 335 | 408 |
With an allowance recorded: | 5 | 5 | 18 | 17 | 22 |
Total: | 241 | 151 | 494 | 352 | 430 |
Home equity | |||||
Recorded Investment | |||||
With no related allowance recorded: | 2,313 | 0 | 2,313 | 0 | 990 |
With an allowance recorded: | 279 | 1,769 | 279 | 1,769 | 1,719 |
Total: | 2,592 | 1,769 | 2,592 | 1,769 | 2,709 |
Unpaid Principal Balance | |||||
With no related allowance recorded: | 2,995 | 0 | 2,995 | 0 | 990 |
With an allowance recorded: | 279 | 1,769 | 279 | 1,769 | 1,719 |
Total: | 3,274 | 1,769 | 3,274 | 1,769 | 2,709 |
Related Allowance | 23 | 596 | 23 | 596 | 562 |
Average Recorded Investment | |||||
With no related allowance recorded: | 2,359 | 0 | 2,106 | 1,056 | 1,041 |
With an allowance recorded: | 276 | 1,769 | 626 | 729 | 959 |
Total: | 2,635 | 1,769 | 2,732 | 1,785 | 2,000 |
Interest Income Recognized while Impaired | |||||
With no related allowance recorded: | 12 | 0 | 13 | 24 | 24 |
With an allowance recorded: | 1 | 1 | 2 | 1 | 11 |
Total: | 13 | 1 | 15 | 25 | 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 | 13 | 10 |
Total: | 0 | 0 | 0 | 13 | 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 | 9 Months Ended |
Sep. 30, 2019USD ($)loan | Sep. 30, 2019USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 4 | |
Restructuring Current Quarter, Pre-modification recorded investment | $ 3,675 | |
Restructuring Current Quarter, Post-modification recorded investment | $ 3,689 | |
TDRs that defaulted that were restructured in prior twelve months, Number of Loans | loan | 0 | |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | |
Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 1 | 1 |
Restructuring Current Quarter, Pre-modification recorded investment | $ 179 | |
Restructuring Current Quarter, Post-modification recorded investment | $ 179 | $ 179 |
TDRs that defaulted that were restructured in prior twelve months, Number of Loans | loan | 0 | |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | |
Commercial tax-exempt | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | |
Restructuring Current Quarter, Pre-modification recorded investment | $ 0 | |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | |
TDRs that defaulted that were restructured in prior twelve months, Number of Loans | loan | 0 | |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | |
Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Pre-modification recorded investment | $ 0 | |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
TDRs that defaulted that were restructured in prior twelve months, Number of Loans | loan | 0 | |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | |
Construction and land | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Pre-modification recorded investment | $ 0 | |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
TDRs that defaulted that were restructured in prior twelve months, Number of Loans | loan | 0 | |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | |
Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 2 | 2 |
Restructuring Current Quarter, Pre-modification recorded investment | $ 3,222 | |
Restructuring Current Quarter, Post-modification recorded investment | $ 3,227 | $ 3,227 |
TDRs that defaulted that were restructured in prior twelve months, Number of Loans | loan | 0 | |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | |
Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 1 | 1 |
Restructuring Current Quarter, Pre-modification recorded investment | $ 274 | |
Restructuring Current Quarter, Post-modification recorded investment | $ 283 | $ 283 |
TDRs that defaulted that were restructured in prior twelve months, Number of Loans | loan | 0 | |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | |
Consumer and other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Pre-modification recorded investment | $ 0 | |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
TDRs that defaulted that were restructured in prior twelve months, Number of Loans | loan | 0 | |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | |
Extension of term | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 1 | 1 |
Restructuring Current Quarter, Post-modification recorded investment | $ 179 | $ 179 |
Extension of term | Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Extension of term | Construction and land | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Extension of term | Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Extension of term | Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Extension of term | Consumer and other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Temporary rate reduction | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Temporary rate reduction | Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Temporary rate reduction | Construction and land | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Temporary rate reduction | Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 2 | 2 |
Restructuring Current Quarter, Post-modification recorded investment | $ 3,227 | $ 3,227 |
Temporary rate reduction | Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 1 | 1 |
Restructuring Current Quarter, Post-modification recorded investment | $ 283 | $ 283 |
Temporary rate reduction | Consumer and other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Payment deferral | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Payment deferral | Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Payment deferral | Construction and land | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Payment deferral | Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Payment deferral | Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Payment deferral | Consumer and other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Combination Of Concessions | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Combination Of Concessions | Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Combination Of Concessions | Construction and land | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Combination Of Concessions | Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Combination Of Concessions | Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Combination Of Concessions | Consumer and other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Restructuring Current Quarter, Number of Loans | loan | 0 | 0 |
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 |
Loan Portfolio and Credit Qu_10
Loan Portfolio and Credit Quality Loan Participation Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Total loan participations serviced for others | $ 91,018 | $ 127,783 |
Total loans serviced for others | 119,389 | 33,168 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Total loan participations serviced for others | 14,358 | 8,024 |
Commercial tax-exempt | ||
Financing Receivable, Impaired [Line Items] | ||
Total loan participations serviced for others | 18,711 | 19,105 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Total loan participations serviced for others | 34,816 | 60,688 |
Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Total loan participations serviced for others | 23,133 | 39,966 |
Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans serviced for others | $ 119,389 | $ 33,168 |
Allowance for Loan Losses Narra
Allowance for Loan Losses Narrative (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for loans losses | $ 75,359,000 | $ 75,067,000 | $ 75,312,000 | $ 73,500,000 | $ 73,464,000 | $ 74,742,000 |
Loans with deteriorated credit quality | 7,067,151,000 | 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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | $ 75,067 | $ 73,464 | $ 75,312 | $ 74,742 |
Loans charged-off: | (185) | 0 | (944) | (529) |
Recoveries on loans previously charged-off: | 310 | 985 | 887 | 1,578 |
Provision/ (credit) for loan losses: | 167 | (949) | 104 | (2,291) |
Allowance for loan losses, end of period: | 75,359 | 73,500 | 75,359 | 73,500 |
Commercial and industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 16,082 | 12,381 | 15,912 | 11,735 |
Loans charged-off: | (180) | 0 | (375) | (339) |
Recoveries on loans previously charged-off: | 275 | 153 | 503 | 387 |
Provision/ (credit) for loan losses: | 361 | 1,921 | 498 | 2,672 |
Allowance for loan losses, end of period: | 16,538 | 14,455 | 16,538 | 14,455 |
Commercial real estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 43,741 | 45,183 | 41,934 | 46,820 |
Loans charged-off: | 0 | 0 | 0 | (135) |
Recoveries on loans previously charged-off: | 27 | 820 | 246 | 995 |
Provision/ (credit) for loan losses: | (762) | (3,179) | 826 | (4,856) |
Allowance for loan losses, end of period: | 43,006 | 42,824 | 43,006 | 42,824 |
Construction and land | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 4,780 | 4,613 | 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: | 6 | 172 | (1,236) | (164) |
Allowance for loan losses, end of period: | 4,786 | 4,785 | 4,786 | 4,785 |
Residential | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 9,555 | 9,804 | 10,026 | 9,773 |
Loans charged-off: | 0 | 0 | 0 | (16) |
Recoveries on loans previously charged-off: | 0 | 0 | 100 | 27 |
Provision/ (credit) for loan losses: | 617 | 144 | 46 | 164 |
Allowance for loan losses, end of period: | 10,172 | 9,948 | 10,172 | 9,948 |
Home equity | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 805 | 1,336 | 1,284 | 835 |
Loans charged-off: | 0 | 0 | (562) | 0 |
Recoveries on loans previously charged-off: | 6 | 0 | 6 | 1 |
Provision/ (credit) for loan losses: | (57) | 6 | 26 | 506 |
Allowance for loan losses, end of period: | 754 | 1,342 | 754 | 1,342 |
Consumer and other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 104 | 147 | 134 | 630 |
Loans charged-off: | (5) | 0 | (7) | (39) |
Recoveries on loans previously charged-off: | 2 | 12 | 32 | 168 |
Provision/ (credit) for loan losses: | 2 | (13) | (56) | (613) |
Allowance for loan losses, end of period: | $ 103 | $ 146 | $ 103 | $ 146 |
Allowance for Loan Losses All_2
Allowance for Loan Losses Allowance by Impairment Analysis Method (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Impairment Recorded investment (loan balance) | $ 20,547 | $ 15,643 | ||||
Individually Evaluated for Impairment Allowance for loan losses | 1,076 | 1,235 | ||||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 7,046,604 | 6,877,515 | ||||
Collectively Evaluated for Impairment Allowance for loan losses | 74,283 | 74,077 | ||||
Total Loans Receivable | 7,067,151 | 6,893,158 | ||||
Allowance for loan losses | 75,359 | $ 75,067 | 75,312 | $ 73,500 | $ 73,464 | $ 74,742 |
Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 1,017 | 3,205 | ||||
Individually Evaluated for Impairment Allowance for loan losses | 341 | 598 | ||||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 1,142,500 | 1,071,503 | ||||
Collectively Evaluated for Impairment Allowance for loan losses | 16,197 | 15,314 | ||||
Total Loans Receivable | 1,143,517 | 1,074,708 | ||||
Allowance for loan losses | 16,538 | 16,082 | 15,912 | 14,455 | 12,381 | 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) | 2,533,346 | 2,395,146 | ||||
Collectively Evaluated for Impairment Allowance for loan losses | 43,006 | 41,934 | ||||
Total Loans Receivable | 2,533,346 | 2,395,692 | ||||
Allowance for loan losses | 43,006 | 43,741 | 41,934 | 42,824 | 45,183 | 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) | 209,741 | 240,306 | ||||
Collectively Evaluated for Impairment Allowance for loan losses | 4,786 | 6,022 | ||||
Total Loans Receivable | 209,741 | 240,306 | ||||
Allowance for loan losses | 4,786 | 4,780 | 6,022 | 4,785 | 4,613 | 4,949 |
Residential | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 16,938 | 9,183 | ||||
Individually Evaluated for Impairment Allowance for loan losses | 712 | 75 | ||||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 2,947,104 | 2,939,790 | ||||
Collectively Evaluated for Impairment Allowance for loan losses | 9,460 | 9,951 | ||||
Total Loans Receivable | 2,964,042 | 2,948,973 | ||||
Allowance for loan losses | 10,172 | 9,555 | 10,026 | 9,948 | 9,804 | 9,773 |
Home equity | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 2,592 | 2,709 | ||||
Individually Evaluated for Impairment Allowance for loan losses | 23 | 562 | ||||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 81,840 | 87,712 | ||||
Collectively Evaluated for Impairment Allowance for loan losses | 731 | 722 | ||||
Total Loans Receivable | 84,432 | 90,421 | ||||
Allowance for loan losses | 754 | 805 | 1,284 | 1,342 | 1,336 | 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) | 132,073 | 143,058 | ||||
Collectively Evaluated for Impairment Allowance for loan losses | 103 | 134 | ||||
Total Loans Receivable | 132,073 | 143,058 | ||||
Allowance for loan losses | $ 103 | $ 104 | $ 134 | $ 146 | $ 147 | $ 630 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities Derivatives Fair Value and Balance Sheet Classification (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 47,925 | $ 22,444 |
Other assets | Derivatives designated as hedging instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 0 | 553 |
Other assets | Derivatives not designated as hedging instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 47,851 | 21,889 |
Other assets | Derivatives not designated as hedging instruments: | Risk participation agreements | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 74 | 2 |
Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 49,235 | 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 | 48,891 | 22,385 |
Other liabilities | Derivatives not designated as hedging instruments: | Risk participation agreements | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 344 | $ 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 | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amount of gain or (loss) recognized in OCI on derivatives | $ 1 | $ (193) | $ (46) | $ 818 | ||
Amount of gain or (loss) reclassified from accumulated OCI into income | 6 | 101 | 508 | 385 | ||
Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amount of gain or (loss) recognized in OCI on derivatives | 1 | (193) | (46) | 818 | ||
Interest expense | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amount of gain or (loss) reclassified from accumulated OCI into income | $ 6 | $ 101 | $ 508 | $ 385 | ||
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 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 | $ 6 | $ 101 | $ 508 | $ 385 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities Collateral With Counterparties (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Pledged securities value | $ 51,800,000 | $ 0 |
Not Designated as Hedging Instrument | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative collateral | $ 48,700,000 | $ 2,200,000 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities Non-Designated Hedges (Details) - Not Designated as Hedging Instrument | Sep. 30, 2019USD ($)derivative_contract | Dec. 31, 2018USD ($) |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 1,500,000,000 | $ 1,300,000,000 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | 0 | 100,000 |
Risk participation agreements | ||
Derivative [Line Items] | ||
Notional amount | $ 59,100,000 | 59,800,000 |
Number of contracts | derivative_contract | 7 | |
Other Contract | ||
Derivative [Line Items] | ||
Notional amount | $ 20,600,000 | $ 20,700,000 |
Number of contracts | derivative_contract | 4 |
Derivatives and Hedging Activ_8
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total | $ (300) | $ 26 | $ (664) | $ 199 |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total | (289) | 8 | (544) | (39) |
Risk participation agreements | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total | $ (11) | $ 18 | $ (120) | $ 238 |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income from continuing operations: | ||||
Income before income taxes | $ 25,575 | $ 24,347 | $ 74,852 | $ 77,214 |
Income tax expense | 5,517 | 5,461 | 15,803 | 28,886 |
Net income from continuing operations | 20,058 | 18,886 | $ 59,049 | $ 48,328 |
Effective tax rate, continuing operations | 21.10% | 37.40% | ||
Income from discontinued operations: | ||||
Income before income taxes | $ 0 | $ 2,388 | ||
Income tax expense | 0 | 692 | ||
Net income from discontinued operations | 0 | 0 | $ 0 | $ 1,696 |
Effective tax rate, discontinued operations | 0.00% | 29.00% | ||
Less: Income attributable to noncontrolling interests: | ||||
Income before income taxes | $ 265 | $ 2,942 | ||
Income tax expense | 0 | 0 | ||
Net income attributable to noncontrolling interests | 96 | 924 | $ 265 | $ 2,942 |
Effective tax rate, noncontrolling interests | 0.00% | 0.00% | ||
Income attributable to the Company | ||||
Income before income taxes | $ 74,587 | $ 76,660 | ||
Income tax expense | 15,803 | 29,578 | ||
Net income attributable to the Company | $ 19,962 | $ 17,962 | $ 58,784 | $ 47,082 |
Effective tax rate attributable to the Company | 21.20% | 38.60% |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate, continuing operations | 21.10% | 37.40% | |||
Income tax expense | $ 5,517 | $ 5,461 | $ 15,803 | $ 28,886 | |
Tax expense on sale | $ 12,700 |
Noncontrolling Interests Narrat
Noncontrolling Interests Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |||||
Net income attributable to noncontrolling interests | $ 96,000 | $ 924,000 | $ 265,000 | $ 2,942,000 | |
Redeemable noncontrolling interests | 1,481,000 | 1,481,000 | $ 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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 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 | $ 96,000 | $ 924,000 | 265,000 | $ 2,942,000 |
Redeemable noncontrolling interests at end of period | 1,481,000 | 1,481,000 | ||
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 | 1,786,000 | 10,747,000 | 2,526,000 | 17,461,000 |
Net income attributable to noncontrolling interests | 96,000 | 711,000 | 265,000 | 2,202,000 |
Distributions | (96,000) | (687,000) | (265,000) | (2,136,000) |
Purchases/ (sales) of ownership interests | 0 | 0 | 12,000 | (6,353,000) |
Amortization of equity compensation | 10,000 | 125,000 | 36,000 | 373,000 |
Adjustments to fair value | (315,000) | 790,000 | (1,093,000) | 139,000 |
Redeemable noncontrolling interests at end of period | $ 1,481,000 | 11,686,000 | $ 1,481,000 | 11,686,000 |
Noncontrolling interests | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Noncontrolling interests at beginning of period | 1,996,000 | 5,186,000 | ||
Net income attributable to noncontrolling interests | 213,000 | 740,000 | ||
Distributions | (203,000) | (712,000) | ||
Purchases/ (sales) of ownership interests | 0 | (3,051,000) | ||
Amortization of equity compensation | 0 | 161,000 | ||
Adjustments to fair value | 203,000 | (115,000) | ||
Noncontrolling interests at end of period | $ 2,209,000 | $ 2,209,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income Summary of Amounts Reclassified (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest (expense) | $ 21,451 | $ 16,460 | $ 61,205 | $ 41,443 |
Income tax (expense)/ benefit | 5,517 | 5,461 | 15,803 | 28,886 |
Net income/ (loss) attributable to the Company | (19,962) | (17,962) | (58,784) | (47,082) |
Hedges related to deposits and borrowings: | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total reclassifications for the period, net of tax | 360 | 273 | ||
Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total reclassifications for the period, net of tax | 4 | 72 | 360 | 273 |
Reclassification out of Accumulated Other Comprehensive Income | Hedges related to deposits and borrowings: | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest (expense) | 6 | 101 | 508 | 385 |
Income tax (expense)/ benefit | (2) | (29) | (148) | (112) |
Net income/ (loss) attributable to the Company | $ 4 | $ 72 | $ 360 | $ 273 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income Narrative (Details) $ in Thousands | Jan. 01, 2018USD ($) | |
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) | |
Retained Earnings | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification due to change in accounting principles | 334 | [1] |
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 2017-12 | Retained Earnings | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification due to change in accounting principles | 5 | |
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) | |
ASU 2016-01 | Retained Earnings | ||
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 | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2018 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 753,954 | $ 785,944 | ||
Ending Balance | 808,688 | 738,009 | ||
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 | 27,469 | (18,888) | ||
Reclassified from other comprehensive income/ (loss) | 0 | 0 | ||
Other comprehensive income/ (loss), net | 27,469 | (18,888) | ||
Reclassification from the adoption of ASUs 2017-12 and 2016-01 | $ (339) | |||
Ending Balance | 9,913 | (27,367) | ||
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 | (31) | 574 | ||
Reclassified from other comprehensive income/ (loss) | (360) | (273) | ||
Other comprehensive income/ (loss), net | (391) | 301 | ||
Reclassification from the adoption of ASUs 2017-12 and 2016-01 | 5 | |||
Ending Balance | 0 | 638 | ||
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 | 27,438 | (18,313) | ||
Reclassified from other comprehensive income/ (loss) | (360) | (273) | ||
Other comprehensive income/ (loss), net | 27,078 | (18,586) | ||
Reclassification from the adoption of ASUs 2017-12 and 2016-01 | [1] | $ (334) | ||
Ending Balance | $ 9,359 | $ (27,578) | ||
[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 | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring cost incurred | $ 1,646 | $ 2,100 | $ 5,763 | |||||
Reduction in workforce | 7.00% | |||||||
Restructuring Reserve [Roll Forward] | ||||||||
Accrued Charges at beginning of period | $ 2,982 | $ 4,346 | 4,686 | 5,763 | 0 | $ 83 | $ 337 | $ 4,686 |
Cost incurred | 1,646 | 2,100 | 5,763 | |||||
Costs paid | (1,156) | (1,364) | (1,986) | (83) | (254) | |||
Accrued Charges at end of period | 1,826 | 2,982 | 4,346 | 4,686 | 5,763 | 0 | 83 | 1,826 |
Severance Charges | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring cost incurred | 1,646 | 5,763 | ||||||
Restructuring Reserve [Roll Forward] | ||||||||
Accrued Charges at beginning of period | 2,192 | 3,556 | 3,896 | 5,763 | 0 | 83 | 337 | 3,896 |
Cost incurred | 1,646 | 5,763 | ||||||
Costs paid | (1,156) | (1,364) | (1,986) | (83) | (254) | |||
Accrued Charges at end of period | 1,036 | 2,192 | 3,556 | 3,896 | 5,763 | 0 | 83 | 1,036 |
Other Associated Costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring cost incurred | 0 | 0 | ||||||
Restructuring Reserve [Roll Forward] | ||||||||
Accrued Charges at beginning of period | 790 | 790 | 790 | 0 | 0 | 0 | 0 | 790 |
Cost incurred | 0 | 0 | ||||||
Costs paid | 0 | 0 | 0 | 0 | 0 | |||
Accrued Charges at end of period | $ 790 | $ 790 | $ 790 | $ 790 | $ 0 | $ 0 | $ 0 | $ 790 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Other banking fee income | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Other banking fee income | $ 0.7 | $ 1.1 | $ 2 | $ 3.1 | |
Other liabilities | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Deferred revenue | $ 6.2 | $ 6.2 | $ 6.9 |
Lease Accounting Narrative (Det
Lease Accounting Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)lease | Sep. 30, 2018USD ($) | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease liabilities | $ 122,799 | |||
ROU assets | $ 107,045 | |||
Rent expense | $ 5,300 | $ 16,100 | ||
Building | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Number real estate leases for office locations | lease | 41 | |||
ASU 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease liabilities | $ 124,100 | |||
ROU assets | $ 108,500 | |||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Term of contract | 5 years | |||
Renewal term | 5 years | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Term of contract | 15 years | |||
Renewal term | 10 years |
Lease Accounting Schedule of Le
Lease Accounting Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 4,866 | $ 14,392 |
Short-term lease cost | 12 | 41 |
Variable lease cost | 143 | 147 |
Less: Sublease income | (27) | (73) |
Total operating lease cost | $ 4,994 | $ 14,507 |
Lease Accounting Other Informat
Lease Accounting Other Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 15,013 |
ROU assets obtained in exchange for new operating lease liabilities | $ 10,510 |
Weighted-average remaining lease term for operating leases | 8 years 2 months 12 days |
Weighted-average discount rate for operating leases | 3.40% |
Lease Accounting Schedule of Mi
Lease Accounting Schedule of Minimum Lease Payments Due (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remainder of 2019 | $ 5,084 | |
2020 | 20,224 | |
2021 | 20,406 | |
2022 | 20,360 | |
2023 | 19,575 | |
Thereafter | 57,005 | |
Total future minimum lease payments | 142,654 | |
Less: Amounts representing interest | (19,855) | |
Present value of net future minimum lease payments | $ 122,799 | |
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 | 9 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | Dec. 31, 2017 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Lease liabilities | $ 122,799 | $ 122,799 | ||||||
Right-of-use assets | 107,045 | 107,045 | ||||||
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 | $ 124,100 | |||||||
Right-of-use assets | $ 108,500 | |||||||
ASU 2017-07 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Reclassification due to change in accounting principles | $ 800 | $ 131 | $ 1,400 | $ 411 | ||||
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.” |