Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 21, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-35070 | ||
Entity Registrant Name | BOSTON PRIVATE FINANCIAL HOLDINGS, INC | ||
Entity Incorporation, State or Country Code | MA | ||
Entity Tax Identification Number | 04-2976299 | ||
Entity Address, Address Line One | Ten Post Office Square | ||
Entity Address, City or Town | Boston | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02109 | ||
City Area Code | 617 | ||
Local Phone Number | 912-1900 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | BPFH | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,004,597,108 | ||
Entity Common Stock, Shares Outstanding | 83,363,841 | ||
Documents Incorporated by Reference | Portions of the registrant’s proxy statement for the Company’s 2020 Annual Meeting of Shareholders are incorporated by reference in Item 5 of Part II and Items 10, 11, 12, 13, and 14 of Part III. | ||
Entity Central Index Key | 0000821127 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 292,479 | $ 127,259 |
Investment securities available-for-sale (amortized cost of $966,900 and $1,018,774 at December 31, 2019 and 2018, respectively) | 978,284 | 994,065 |
Investment securities held-to-maturity (fair value of $47,949 and $68,595 at December 31, 2019 and 2018, respectively) | 48,212 | 70,438 |
Equity securities at fair value | 18,810 | 14,228 |
Stock in Federal Home Loan Bank and Federal Reserve Bank | 39,078 | 49,263 |
Loans held for sale | 7,386 | 2,812 |
Total loans | 6,976,704 | 6,893,158 |
Less: Allowance for loan losses | 71,982 | 75,312 |
Net loans | 6,904,722 | 6,817,846 |
Other real estate owned (“OREO”) | 0 | 401 |
Premises and equipment, net | 44,527 | 45,412 |
Goodwill | 57,607 | 57,607 |
Intangible assets, net | 10,352 | 12,227 |
Fees receivable | 4,095 | 5,101 |
Accrued interest receivable | 24,175 | 24,366 |
Deferred income taxes, net | 11,383 | 26,638 |
Right-of-use assets | 102,075 | |
Other assets | 287,316 | 246,962 |
Total assets | 8,830,501 | 8,494,625 |
Liabilities: | ||
Deposits | 7,241,476 | 6,781,170 |
Securities sold under agreements to repurchase | 53,398 | 36,928 |
Federal funds purchased | 0 | 250,000 |
Federal Home Loan Bank borrowings | 350,829 | 420,144 |
Junior subordinated debentures | 106,363 | 106,363 |
Present value of net future minimum lease payments | 117,214 | |
Other liabilities | 140,820 | 143,540 |
Total liabilities | 8,010,100 | 7,738,145 |
Redeemable Noncontrolling Interests | 1,383 | 2,526 |
Shareholders’ Equity: | ||
Common stock, $1.00 par value; authorized: 170,000,000 shares; issued and outstanding: 83,265,674 shares at December 31, 2019 and 83,655,651 shares at December 31, 2018 | 83,266 | 83,656 |
Additional paid-in capital | 600,708 | 600,196 |
Retained earnings | 127,469 | 87,821 |
Accumulated other comprehensive income/(loss) | 7,575 | (17,719) |
Total shareholders’ equity | 819,018 | 753,954 |
Total liabilities, redeemable noncontrolling interests and shareholders’ equity | $ 8,830,501 | $ 8,494,625 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Financial Position [Abstract] | ||
Investment securities available-for-sale at amortized cost | $ 966,900 | $ 1,018,774 |
Fair Value | $ 47,949 | $ 68,595 |
Preferred stock, par value (in dollars per shares) | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 |
Preferred stock dividend rate | 6.95% | 6.95% |
Preferred Stock, Shares Issued | 0 | 50,000 |
Preferred Stock, Shares Outstanding | 0 | 50,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 |
Common Stock, Par Value Per Share | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 170,000,000 | 170,000,000 |
Common stock, shares issued (in shares) | 83,265,674 | 83,655,651 |
Common stock, shares outstanding (in shares) | 83,265,674 | 83,655,651 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and dividend income: | |||
Loans | $ 281,580,000 | $ 262,525,000 | $ 228,964,000 |
Taxable investment securities | 4,113,000 | 6,007,000 | 6,393,000 |
Non-taxable investment securities | 7,702,000 | 7,094,000 | 6,622,000 |
Mortgage-backed securities | 10,793,000 | 12,091,000 | 13,391,000 |
Short-term investments and other | 4,259,000 | 5,187,000 | 3,325,000 |
Total interest and dividend income | 308,447,000 | 292,904,000 | 258,695,000 |
Interest expense: | |||
Deposits | 59,083,000 | 39,846,000 | 20,884,000 |
Federal Home Loan Bank borrowings | 14,969,000 | 13,787,000 | 9,883,000 |
Junior subordinated debentures | 4,189,000 | 3,925,000 | 2,919,000 |
Repurchase agreements and other short-term borrowings | 2,130,000 | 780,000 | 323,000 |
Total interest expense | 80,371,000 | 58,338,000 | 34,009,000 |
Net interest income | 228,076,000 | 234,566,000 | 224,686,000 |
Provision/(credit) for loan losses | (3,564,000) | (2,198,000) | (7,669,000) |
Net interest income after provision/(credit) for loan losses | 231,640,000 | 236,764,000 | 232,355,000 |
Fees and other income: | |||
Gain/(loss) on sale of investments, net | 0 | (613,000) | 376,000 |
Gain/(loss) on OREO, net | 91,000 | 0 | (46,000) |
Gain/(loss) on sale of affiliates | 0 | 18,142,000 | (1,264,000) |
Other | 2,974,000 | 853,000 | 2,098,000 |
Total fees and other income | 101,547,000 | 149,997,000 | 153,966,000 |
Operating expense: | |||
Salaries and employee benefits | 134,302,000 | 161,468,000 | 178,501,000 |
Occupancy and equipment | 32,038,000 | 32,116,000 | 30,165,000 |
Information systems | 22,642,000 | 25,185,000 | 21,796,000 |
Professional services | 15,228,000 | 13,155,000 | 13,763,000 |
Marketing and business development | 6,439,000 | 7,648,000 | 7,766,000 |
Amortization of intangibles | 2,691,000 | 2,929,000 | 5,601,000 |
Goodwill, Impairment Loss | 0 | 0 | 24,901,000 |
FDIC insurance | 1,285,000 | 2,865,000 | 2,969,000 |
Restructuring | 1,646,000 | 7,828,000 | 0 |
Other | 13,935,000 | 14,161,000 | 14,474,000 |
Total operating expense | 230,206,000 | 267,355,000 | 299,936,000 |
Income before income taxes | 102,981,000 | 119,406,000 | 86,385,000 |
Income tax expense/(benefit) | 22,591,000 | 37,537,000 | 46,196,000 |
Net income from continuing operations | 80,390,000 | 81,869,000 | 40,189,000 |
Net income from discontinued operations | 0 | 2,002,000 | 4,870,000 |
Net income before attribution to noncontrolling interests | 80,390,000 | 83,871,000 | 45,059,000 |
Less: Net income attributable to noncontrolling interests | 362,000 | 3,487,000 | 4,468,000 |
Net income attributable to the Company | 80,028,000 | 80,384,000 | 40,591,000 |
Adjustments to net income attributable to the Company to arrive at net income attributable to common shareholders | 1,143,000 | (1,682,000) | (4,887,000) |
Net income attributable to common shareholders for earnings per share calculation | $ 81,171,000 | $ 78,702,000 | $ 35,704,000 |
Per share data - Basic earnings per share from: | |||
From continuing operations: (in dollars per share) | $ 0.97 | $ 0.92 | $ 0.37 |
From discontinued operations: (in dollars per share) | 0 | 0.02 | 0.06 |
Total attributable to common shareholders: (in dollars per share) | $ 0.97 | $ 0.94 | $ 0.43 |
Weighted average basic common shares outstanding (in shares) | 83,430,740 | 83,596,685 | 82,430,633 |
Per share data - Diluted earnings per share from: | |||
From continuing operations: (in dollars per share) | $ 0.97 | $ 0.90 | $ 0.36 |
From discontinued operations: (in dollars per share) | 0 | 0.02 | 0.06 |
Total attributable to common shareholders: (in dollars per share) | $ 0.97 | $ 0.92 | $ 0.42 |
Weighted average diluted common shares outstanding (in shares) | 83,920,792 | 85,331,314 | 84,802,565 |
Holding Company and Eliminations | |||
Interest expense: | |||
Net interest income | $ (4,127,000) | $ (3,808,000) | $ (2,716,000) |
Fees and other income: | |||
Total fees and other income | 11,729,000 | 61,439,000 | 66,873,000 |
Operating expense: | |||
Amortization of intangibles | 0 | 154,000 | 2,719,000 |
Total operating expense | 13,940,000 | 35,600,000 | 80,962,000 |
Income before income taxes | (6,338,000) | 22,031,000 | (16,805,000) |
Income tax expense/(benefit) | (2,287,000) | 17,079,000 | (1,142,000) |
Net income from continuing operations | (4,051,000) | 4,952,000 | (15,663,000) |
Net income from discontinued operations | 0 | 2,002,000 | 4,870,000 |
Less: Net income attributable to noncontrolling interests | 362,000 | 3,487,000 | 4,468,000 |
Net income attributable to the Company | (4,413,000) | 3,467,000 | (15,261,000) |
Investment management fees | |||
Fees and other income: | |||
Revenue from contracts with customers | 10,155,000 | 21,728,000 | 45,515,000 |
Wealth management and trust fees | |||
Fees and other income: | |||
Revenue from contracts with customers | 75,757,000 | 99,818,000 | 97,921,000 |
Other banking fee income | |||
Fees and other income: | |||
Revenue from contracts with customers | 10,948,000 | 9,826,000 | 8,915,000 |
Gain on sale of loans, net | |||
Fees and other income: | |||
Revenue from contracts with customers | $ 1,622,000 | $ 243,000 | $ 451,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to the Company | $ 80,028 | $ 80,384 | $ 40,591 |
Other comprehensive income/ (loss), net of tax: | |||
Unrealized gain/(loss) on securities available-for-sale | 25,991 | (9,503) | 4,719 |
Reclassification adjustment for net realized (gain)/loss included in net income | 0 | 426 | (222) |
Net unrealized gain/(loss) on securities available-for-sale | 25,991 | (9,077) | 4,497 |
Unrealized gain/(loss) on cash flow hedges | (31) | 700 | |
Reclassification adjustment for net realized (gain)/loss included in net income | (360) | (646) | |
Net unrealized gain/(loss) on cash flow hedges | (391) | 54 | |
Unrealized gain/(loss) on cash flow hedges | 190 | ||
Reclassification adjustment for net realized (gain)/loss included in net income | 688 | ||
Net unrealized gain/(loss) on cash flow hedges | 878 | ||
Unrealized gain/(loss) on other | (306) | 296 | 50 |
Net unrealized gain/(loss) on other | (306) | 296 | 50 |
Other comprehensive income/(loss), net of tax | 25,294 | (8,727) | 5,425 |
Total comprehensive income attributable to the Company, net | $ 105,322 | $ 71,657 | $ 46,016 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock Including Additional Paid in Capital | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/ (Loss) | Noncontrolling Interests |
Beginning Balance at Dec. 31, 2016 | $ 768,481 | $ 47,753 | $ 83,732 | $ 597,454 | $ 47,929 | $ (12,548) | $ 4,161 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income attributable to the Company | 40,591 | 40,591 | |||||
Other comprehensive income/ (loss), net | 5,425 | 5,425 | |||||
Dividends paid to common shareholders | (37,054) | (37,054) | |||||
Dividends paid to preferred shareholders | (3,475) | (3,475) | |||||
Net change in noncontrolling interests | 1,025 | 1,025 | |||||
Net proceeds from issuance of: | |||||||
Net proceeds from issuance of shares of common stock | 1,601 | 140 | 1,461 | ||||
Shares of incentive stock grants, net of shares canceled or forfeited and shares withheld for employee taxes | (1,430) | (191) | (1,239) | ||||
Exercise of warrants | 3,003 | 419 | 2,584 | ||||
Amortization of stock compensation and employee stock purchase plan | 8,275 | 8,275 | |||||
Stock options exercised | 882 | 108 | 774 | ||||
Other equity adjustments | (1,380) | (1,380) | |||||
Ending Balance at Dec. 31, 2017 | 785,944 | 47,753 | 84,208 | 607,929 | 49,526 | (8,658) | 5,186 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income attributable to the Company | 80,384 | 80,384 | |||||
Other comprehensive income/ (loss), net | (8,727) | (8,727) | |||||
Dividends paid to common shareholders | (40,685) | (40,685) | |||||
Dividends paid to preferred shareholders | (1,738) | (1,738) | |||||
Net change in noncontrolling interests | (5,186) | (5,186) | |||||
Redemption of Series D preferred stock | (50,000) | (47,753) | (2,247) | ||||
Repurchase of shares of common stock | (20,000) | (1,643) | (18,357) | ||||
Net proceeds from issuance of: | |||||||
Net proceeds from issuance of shares of common stock | 1,866 | 143 | 1,723 | ||||
Shares of incentive stock grants, net of shares canceled or forfeited and shares withheld for employee taxes | (1,804) | (275) | (1,529) | ||||
Exercise of warrants | 372 | 1,019 | (647) | ||||
Amortization of stock compensation and employee stock purchase plan | 6,050 | 6,050 | |||||
Stock options exercised | 1,661 | 204 | 1,457 | ||||
Other equity adjustments | 5,817 | 5,817 | |||||
Ending Balance at Dec. 31, 2018 | 753,954 | 0 | 83,656 | 600,196 | 87,821 | (17,719) | 0 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income attributable to the Company | 80,028 | 80,028 | |||||
Other comprehensive income/ (loss), net | 25,294 | 25,294 | |||||
Dividends paid to common shareholders | (40,380) | (40,380) | |||||
Repurchase of shares of common stock | (7,193) | (678) | (6,515) | ||||
Net proceeds from issuance of: | |||||||
Net proceeds from issuance of shares of common stock | 2,413 | 278 | 2,135 | ||||
Shares of incentive stock grants, net of shares canceled or forfeited and shares withheld for employee taxes | (493) | (73) | (420) | ||||
Amortization of stock compensation and employee stock purchase plan | 3,994 | 3,994 | |||||
Stock options exercised | 562 | 83 | 479 | ||||
Other equity adjustments | 839 | 839 | |||||
Ending Balance at Dec. 31, 2019 | $ 819,018 | $ 0 | $ 83,266 | $ 600,708 | $ 127,469 | $ 7,575 | $ 0 |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity Parenthetical - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid per share to common shareholders (in dollars per share) | $ 0.48 | $ 0.48 | $ 0.44 |
Shares of common stock issued (in shares) | 278,060 | 142,817 | 140,284 |
Shares of incentive common stock issued (in shares) | 56,767 | 40,475 | 0 |
Shares of incentive common stock canceled or forfeited (in shares) | (10,026) | (154,905) | (99,927) |
Shares of incentive common stock withheld for employee taxes (in shares) | (119,590) | (161,967) | (91,100) |
Repurchase of common stock, number of shares (in shares) | (678,165) | (1,642,635) | 0 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income attributable to the Company | $ 80,028,000 | $ 80,384,000 | $ 40,591,000 |
Adjustments to arrive at net income/(loss) from continuing operations | |||
Less: Net income attributable to noncontrolling interests | 362,000 | 3,487,000 | 4,468,000 |
Net income from discontinued operations | 0 | (2,002,000) | (4,870,000) |
Net income from continuing operations | 80,390,000 | 81,869,000 | 40,189,000 |
Adjustments to reconcile net income/(loss) from continuing operations to net cash provided by/(used in) operating activities: | |||
Depreciation and amortization | 24,125,000 | 23,129,000 | 21,023,000 |
Net income attributable to noncontrolling interests | (362,000) | (3,487,000) | (4,468,000) |
Stock compensation, net of cancellations | 4,820,000 | 6,676,000 | 8,275,000 |
Goodwill, Impairment Loss | 0 | 0 | 24,901,000 |
Provision/(credit) for loan losses | (3,564,000) | (2,198,000) | (7,669,000) |
Loans originated for sale | (62,690,000) | (37,631,000) | (53,287,000) |
Proceeds from sale of loans held for sale | 58,541,000 | 39,773,000 | 52,508,000 |
(Gain)/loss on sale of affiliates | 0 | (18,142,000) | 1,264,000 |
Goodwill and intangibles on sale of affiliates | 0 | 18,919,000 | 0 |
Deferred income tax expense/(benefit) | 5,423,000 | 5,829,000 | 22,845,000 |
Decrease in right-of-use assets | 6,386,000 | ||
Increase in operating lease liabilities | (7,050,000) | ||
Net decrease/(increase) in other operating activities | (32,737,000) | (23,240,000) | (8,466,000) |
Net cash provided by/(used in) operating activities of continuing operations | 73,282,000 | 91,497,000 | 97,115,000 |
Net cash provided by operating activities of discontinued operations | 0 | 2,002,000 | 4,870,000 |
Net cash provided by operating activities | 73,282,000 | 93,499,000 | 101,985,000 |
Investment securities available-for-sale: | |||
Purchases | (84,514,000) | (39,747,000) | (111,755,000) |
Sales | 0 | 53,412,000 | 81,221,000 |
Maturities, redemptions, and principal payments | 128,654,000 | 120,523,000 | 120,546,000 |
Investment securities held-to-maturity: | |||
Purchases | 0 | (21,752,000) | (14,945,000) |
Principal payments | 21,949,000 | 25,598,000 | 32,912,000 |
Equity securities at fair value: | |||
Purchases | (51,395,000) | (63,791,000) | (65,266,000) |
Sales | 46,813,000 | 70,357,000 | 67,186,000 |
(Investments)/distributions in trusts, net | 720,000 | 224,000 | (952,000) |
Purchase of BOLI | 0 | 0 | (50,000,000) |
Contingent Considerations from Divestitures | 4,507,000 | 1,233,000 | 0 |
Redemption of FHLB and FRB stock | 10,185,000 | 10,710,000 | |
Purchase of FHLB and FRB stock | (15,896,000) | ||
Net increase in portfolio loans | (277,351,000) | (390,884,000) | (390,003,000) |
Proceeds from recoveries of loans previously charged-off | 1,463,000 | 3,266,000 | 5,197,000 |
Proceeds from sale of OREO | 492,000 | 108,000 | 1,644,000 |
Proceeds from sale of portfolio loans | 190,686,000 | ||
Capital expenditures | (11,205,000) | (20,643,000) | (14,204,000) |
Net cash provided by/(used in) investing activities | (18,996,000) | (198,405,000) | (354,315,000) |
Cash flows from financing activities: | |||
Net increase in deposits | 460,306,000 | 270,924,000 | 425,100,000 |
Net (decrease)/increase in securities sold under agreements to repurchase | 16,470,000 | 4,759,000 | (27,455,000) |
Net (decrease)/increase in federal funds purchased | (250,000,000) | 220,000,000 | (50,000,000) |
Net (decrease)/increase in short-term FHLB borrowings | 35,000,000 | (220,000,000) | 40,000,000 |
Advances of long-term FHLB borrowings | 340,000,000 | 116,444,000 | 50,110,000 |
Repayments of long-term FHLB borrowings | (444,315,000) | (169,981,000) | (130,634,000) |
Repurchase of Series D preferred stock, including deemed dividend | 0 | (50,000,000) | 0 |
Repurchase of common stock | (7,193,000) | (20,000,000) | 0 |
Dividends paid to common shareholders | (40,380,000) | (40,685,000) | (37,054,000) |
Dividends paid to preferred shareholders | 0 | (1,738,000) | (3,475,000) |
Proceeds from warrant exercises | 0 | 372,000 | 3,003,000 |
Proceeds from stock option exercises | 562,000 | 1,661,000 | 882,000 |
Proceeds from issuance of common stock | 2,413,000 | 1,866,000 | 1,601,000 |
Tax withholding for share based compensation awards | (1,319,000) | (2,430,000) | (1,430,000) |
Distributions paid to noncontrolling interests | (362,000) | (3,354,000) | (4,360,000) |
Other equity adjustments | (248,000) | 3,786,000 | 26,000 |
Net cash provided by financing activities | 110,934,000 | 111,624,000 | 266,314,000 |
Net increase in cash and cash equivalents | 165,220,000 | 6,718,000 | 13,984,000 |
Cash and cash equivalents at beginning of year | 127,259,000 | 120,541,000 | 106,557,000 |
Cash and cash equivalents at end of year | 292,479,000 | 127,259,000 | 120,541,000 |
Supplementary schedule of non-cash investing and financing activities: | |||
Cash paid for interest | 80,428,000 | 58,548,000 | 33,727,000 |
Cash paid for income taxes, net of (refunds received) | 17,017,000 | 20,541,000 | 32,159,000 |
Change in unrealized gain/(loss) on securities available-for-sale, net of tax | 25,991,000 | (9,077,000) | 4,497,000 |
Change in unrealized gain/(loss) on cash flow hedges, net of tax | (391,000) | 54,000 | |
Change in unrealized gain/ (loss) on cash flow hedges, net of tax | 878,000 | ||
Change in unrealized gain/(loss) on other, net of tax | (306,000) | 296,000 | 50,000 |
Transfer of net assets into held for sale | 0 | 21,000 | 58,034,000 |
Loans charged-off | (1,229,000) | (899,000) | (863,000) |
Loans transferred into OREO from portfolio | 0 | 401,000 | 0 |
Net present value of asset sold | $ 0 | $ 52,981,000 | $ 0 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [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, Northern California, and Southern California. The Private Banking segment is principally engaged in providing 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, as well as 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 previously 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, Northern California, 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 subsidiaries of the Company: 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. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 3: Asset Sales and Divestitures” for additional information. 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 for all periods presented. The results of DGHM are now included within the Holding Company and Eliminations segment for all periods presented. The results of Anchor and BOS are included in the Holding Company and Eliminations segment for the periods owned. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 3: Asset Sales and Divestitures” for further details on the transactions. Basis of Presentation 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 owners other than the Company is included in “Net income attributable to noncontrolling interests” in the Consolidated Statements of Operations. Redeemable noncontrolling interests in the Consolidated Balance Sheets reflect the maximum redemption value of agreements with other owners. The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S.”) (“GAAP”). Reclassifications of amounts in prior years’ consolidated financial statements are made whenever necessary to conform to the current year’s presentation. Use of Estimates In preparing the consolidated financial statements, management is required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to change, in the near term, relate to the determination of the allowance for loan losses, valuation of goodwill and intangible assets, and income tax estimates. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with clients within the New England, Northern California, and Southern California regions of the country. The Company does not believe it has any significant concentrations in any one industry, geographic location, or with any one client. Part II. Item 8. “Financial Statements and Supplementary Data - Note 4: Investment Securities” highlights the types of securities in which the Company invests, and Part II. Item 8. “Financial Statements and Supplementary Data - Note 5: Loan Portfolio and Credit Quality” describes the concentration of the Private Banking loan data based on the location of the lender. Statements of Cash Flows For purposes of reporting cash flows, the Company considers cash and due from banks which have original maturities with 90 days or less to be cash equivalents. Cash and Due from Banks The Bank is required to maintain average reserve balances in an account with the Federal Reserve based upon a percentage of certain deposits. As of December 31, 2019 and 2018, the daily amounts required to be held in the aggregate for the Bank were $3.4 million and $4.3 million, respectively. Investment Securities Available-for-sale investment securities are reported at fair value, with unrealized gains and losses credited or charged, net of the estimated tax effect, to accumulated other comprehensive income/(loss). Held-to-maturity investment securities are those which the Company has the positive intent and ability to hold to maturity and are reported at amortized cost. Equity securities are primarily money market mutual fund securities and are reported at fair value. Premiums and discounts on the investment securities are amortized or accreted into net interest income by the level-yield method. Gains and losses on the sale of the available-for-sale investments are recognized at the trade date on a specific identification basis. Dividend and interest income is recognized when earned and is recorded on the accrual basis. The Company conducts a quarterly review and evaluation of its investment securities to determine if the decline in fair value of a security below its amortized cost is deemed to be other-than-temporary. Other-than-temporary impairment losses are recognized on securities when: (i) the holder has an intention to sell the security; (ii) it is more likely than not that the security will be required to be sold prior to recovery; or (iii) the holder does not expect to recover the entire amortized cost basis of the security. Other-than-temporary losses are reflected in earnings as a charge against gain on sale of investments, net, to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in accumulated other comprehensive income/(loss). The Company has no intention to sell any securities in an unrealized loss position at December 31, 2019, nor is it more likely than not that the Company would be required to sell such securities prior to the recovery of the unrealized losses. As of December 31, 2019, the Company believes that all impairments of investment securities are temporary in nature. No other-than-temporary impairment losses were recognized in the Consolidated Statements of Operations for the years ended December 31, 2019, 2018, and 2017. Loans Held for Sale Loans originated and held for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Fair value is based on commitments on hand from investors or prevailing market prices. Unrealized losses, if any, are recognized through a valuation allowance by charges to income. Loans transferred to the held for sale category from the loan portfolio are transferred at the lower of cost or fair value, usually as determined at the individual loan level. If fair value is less than cost, then a charge for the difference will be made to the allowance for loan losses if the decline in value is due to credit issues. Gains or losses on the sale of loans are recognized at the time of sale on a specific identification basis. Interest income is recognized on an accrual basis when earned. Loans Loans are carried at the principal amount outstanding, net of participations, deferred loan origination fees and costs, charge-offs, and interest payments applied to principal on nonaccrual loans. Loan origination fees, net of related direct incremental loan origination costs, are deferred and recognized into income over the contractual lives of the related loans as an adjustment to the loan yield, using the level-yield method. If a loan is paid off prior to maturity, the unamortized portion of net fees/cost is recognized into interest income. If a loan is sold, the unamortized portion of net fees/cost is recognized at the time of sale as a component of the gain or loss on sale of loans. When the Company analyzes its loan portfolio to determine the adequacy of its allowance for loan losses, it categorizes the loans by portfolio segment and class of financing receivable based on the similarities in risk characteristics for the loans. The Company has determined that its portfolio segments and classes of financing receivables are one and the same, with the exception of the commercial and industrial portfolio segment, which consists of other commercial and industrial loans and commercial tax-exempt loans. The level at which the Company develops and documents its allowance for loan loss methodology is consistent with the grouping of financing receivables based upon initial measurement attributes, risk characteristics, and the Company’s method for monitoring and assessing credit risks. These portfolio segments and classes of financing receivables are: • Commercial and industrial (portfolio segment) ◦ Other commercial and industrial loans (class of financing receivable)- Commercial and industrial loans include working capital and revolving lines of credit, term loans for equipment and fixed assets, and Small Business Administration (“SBA”) loans. ◦ Commercial tax-exempt loans (class of financing receivable)- Commercial tax-exempt loans include loans to not-for-profit private schools, colleges, public charter schools and other non-for-profit organizations. • Commercial real estate (segment and class)- Commercial real estate loans are generally acquisition financing for commercial properties such as office buildings, retail properties, apartment buildings, and industrial/warehouse space. In addition, tax-exempt commercial real estate loans are provided for affordable housing development and rehabilitation. These loans are often supplemented with federal, state, and/or local subsidies. • Construction and land (segment and class)- Construction and land loans include loans for financing of new developments as well as financing for improvements to existing buildings. In addition, tax-exempt construction and land loans are provided for the construction phase of the commercial tax-exempt and commercial real estate tax-exempt loans described above. • Residential mortgage (segment and class)- Residential mortgage loans consist of loans secured by single-family and one- to four-unit properties in excess of the amount eligible for purchase by the Federal National Mortgage Association, which was $484 thousand at December 31, 2019 for the “General” limit and $727 thousand for single-family properties for the “High-Cost” limit, depending on which specific geographic region of the Bank’s primary market areas the loan was originated. While the Bank has no minimum size for mortgage loans, it concentrates its origination activities in the “Jumbo” segment of the market. • Home equity (segment and class)- Home equity loans consist of balances outstanding on second mortgages and home equity lines of credit extended to individual clients. Personal lines of credit are typically for high net worth clients whose assets may not be liquid due to investments or closely held stock. The amount of home equity loans typically depends on client demand. • Consumer and other (segment and class)- Consumer and other loans consist of balances outstanding on consumer loans including personal lines of credit, and loans arising from overdraft protection extended to individual and business clients. Personal lines of credit are typically for high net worth clients whose assets may not be liquid due to investments or closely held stock. The amount of consumer and other loans typically depends on client demand. The past due status of a loan is determined in accordance with its contractual repayment terms. Loans are reported past due when one scheduled payment is due and unpaid for 30 days or more. The Bank’s policy is to discontinue the accrual of interest on a loan when the collectability of principal or interest is in doubt. 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. Impaired loans are usually commercial loans or construction and land loans, for which it is probable that the Company will not collect all amounts due according to the contractual terms of the loan agreement, and all loans restructured in a troubled debt restructuring. Accrual of interest income is discontinued and all interest previously accrued but not collected is reversed against current period interest income when a loan is initially classified as nonaccrual. Generally, interest received on nonaccrual loans is applied against principal or, on a limited basis, reported as interest income on a cash basis, when according to management’s judgment, the collectability of principal is reasonably assured. The Bank’s general policy for returning a loan to accrual status requires the loan to be brought current, for the client to show a history of making timely payments (generally six consecutive months), and when the financial position of the borrower and other relevant factors indicate there is no longer doubt as to the collectability of the loan. The Bank’s loan commitments are generally short-term in nature with terms that are primarily variable. Given the limited interest rate exposure posed by the commitments, the Bank estimates the fair value of these commitments to be immaterial. 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 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. Restructured Loans When the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to a troubled borrower that it would not otherwise consider, the loan is classified as a restructured loan pursuant to Accounting Standards Codification (“ASC”) 470, Debt . The concession either stems from an agreement between the creditor and the Bank or is imposed by law or a court. The concessions may include: • Deferral of principal and/or interest payments • Lower interest rate as compared to a new loan with comparable risk and terms • Extension of the maturity date • Reduction in the principal balance owed All loans whose terms have been modified in a troubled debt restructuring, including commercial, residential, and consumer, are evaluated for impairment under ASC 310, Receivables . Generally, a nonaccrual loan that is restructured remains on nonaccrual status for a period of at least six months to demonstrate that the borrower can meet the restructured terms. However, performance prior to the restructuring or significant events that coincide with the restructuring are considered when assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of the restructuring or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains classified as a nonaccrual loan. A loan may be removed from a restructured classification after the next fiscal year-end, if the restructured terms include a market interest rate and the borrower has demonstrated performance with the restructured terms. Allowance for Loan Losses The allowance for loan losses (“allowance”) is an estimate of the inherent risk of loss in the loan portfolio as of the dates indicated on the Consolidated Balance Sheets. 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 Company’s allowance is accounted for in accordance with guidance issued by various regulatory agencies, including: the Federal Financial Institutions Examination Council Policy Statement on the Allowance for Loan and Lease Losses (December 2006); Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin No. 102, Selected Loan Loss Methodology and Documentation Issues ; ASC 310, Receivables ; and ASC 450, Contingencies . The allowance consists of three primary components: general reserves on pass graded loans, allocated reserves on non-impaired special mention and substandard loans, and specific reserves on impaired loans. The calculation of the allowance involves a high degree of management judgment and estimates designed to reflect the inherent risk of loss in the loan portfolio at the measurement date. General reserves are calculated for each loan pool consisting of pass graded loans segregated by portfolio segment by applying estimated net loss percentages based upon the Bank’s actual historical net charge-offs during the historical observation period and loss emergence period. In addition, consideration of qualitative factors are applied to arrive at a total loss factor for each portfolio segment. The rationale for qualitative adjustments is to more accurately reflect the current inherent risk of loss in the respective portfolio segments than would be determined through the sole consideration of the Bank’s actual historical net charge-off rates. The numerical factors assigned to each qualitative factor are based upon observable data, if applicable, as well as management’s analysis and judgment. The qualitative factors considered by the Company include: • Volume and severity of past due, nonaccrual, and adversely graded loans, • Volume and terms of loans, • Concentrations of credit, • Management’s experience, as well as loan underwriting and loan review policy and procedures, • Economic and business conditions impacting the Bank’s loan portfolio, as well as consideration of collateral values, and • External factors, including consideration of loss factor trends, competition, and legal and regulatory requirements. The Bank makes a determination of the applicable loss rate for these factors based on relevant local market conditions, credit quality, and portfolio mix. Each quarter, management reviews the loss factors to determine if there have been any changes in its loan portfolio, market conditions, or other risk indicators which would result in a change to the current loss factor. Allocated reserves on non-impaired special mention and substandard loans reflect management’s assessment of increased risk of losses associated with these types of adversely graded loans. An allocated reserve is assigned to these pools of loans based upon management’s consideration of the credit attributes of individual loans within each pool of loans, including consideration of loan to value ratios, past due status, strength and willingness of the guarantors, and other relevant attributes as well as the qualitative factors considered for the general reserve, as discussed above. These considerations are determined separately for each type of portfolio segment. The allocated reserves are a multiple of the general reserve for each respective portfolio segments, with a greater multiple for loans with increased risk ( i.e. special mention loans versus substandard loans). A loan is considered impaired in accordance with ASC 310 when, based upon current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impairment is measured based on the fair value of the loan, expected future cash flows discounted at the loan’s effective interest rate, or as a practical expedient, impairment may be determined based upon the observable market price of the loan, or the fair value of the collateral, less estimated costs to sell, if the loan is “collateral dependent.” A loan is collateral dependent if repayment of the loan is expected to be provided solely by the underlying collateral or sale of the underlying collateral. For collateral dependent loans, appraisals are generally used to determine the fair value. When a collateral dependent loan becomes impaired, an updated appraisal of the collateral is obtained, if appropriate. Appraised values are generally discounted for factors such as the Bank’s intention to liquidate the property quickly in a foreclosure sale or the date when the appraisal was performed if the Bank believes that collateral values have declined since the date the appraisal was done. The Bank may use a broker opinion of value in addition to an appraisal to validate the appraised value. In certain instances, the Bank may consider broker opinions of value as well as other qualitative factors while an appraisal is being prepared. If the loan is deemed to be collateral dependent, generally the difference between the book balance (client balance less any prior charge-offs or client interest payments applied to principal) and the fair value of the collateral less costs to sell is taken as a partial charge-off through the allowance for loan losses in the current period. If the loan is not determined to be collateral dependent, then a specific allocation to the general reserve is established for the difference between the book balance of the loan and the expected future cash flows discounted at the loan’s effective interest rate. Charge-offs for loans not considered to be collateral dependent are made when it is determined a loss has been incurred. Impaired loans are removed from the general loan pools. There may be instances where the loan is considered impaired although based on the fair value of underlying collateral or the discounted expected future cash flows there is no impairment to be recognized. In addition, all loans which are classified as troubled debt restructurings (“TDRs”) are considered impaired. In addition to the three primary components of the allowance for loan losses discussed above (general reserves, allocated reserves on non-impaired special mention and substandard loans, and the specific reserves on impaired loans), the Bank may also maintain an insignificant amount of additional allowance for loan losses (the unallocated allowance for loan losses). The unallocated reserve reflects the fact that the allowance for loan losses is an estimate and contains a certain amount of imprecision risk. It represents risks identified by Management that are not already captured in the qualitative factors discussed above. The unallocated allowance for loan losses is not considered significant by the Company and will remain at zero unless additional risk is identified. While this evaluation process utilizes historical and other objective information, the classification of loans and the establishment of the allowance for loan losses rely to a great extent on the judgment and experience of management. While management evaluates currently available information in establishing the allowance for loan losses, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluations. In addition, various regulatory agencies, as an integral part of their examination process, periodically review a financial institution’s allowance for loan losses as well as loan grades/classifications. Such agencies may require the financial institution to recognize additions to the allowance for loan losses or increases to adversely graded loans based on their judgments about information available to them at the time of their examination. Reserve for Unfunded Loan Commitments The Company maintains a reserve for unfunded loan commitments for such items as unused portion of lines of credit and unadvanced construction loans. The reserve is maintained at a level that reflects the risk in these various commitments. Management determines the reserve percentages on a quarterly basis based on a percentage of the current historical loss rates for these portfolios. Once a loan commitment is funded, the reserve for unfunded loan commitment is reversed and a corresponding allowance for loan loss reserve is established. This unfunded loan commitment reserve is included in other liabilities in the Consolidated Balance Sheets. Net adjustments to the reserve for unfunded commitments are included in other operating expense in the Consolidated Statements of Operations. OREO OREO is comprised of property acquired through foreclosure proceedings or acceptance of a deed-in-lieu of foreclosure in partial or total satisfaction of certain loans. Properties are recorded at the lower of the recorded investment in the loan at the time of acquisition or the fair value, as established by a current appraisal, comparable sales, and other estimates of value obtained principally from independent sources, less estimated costs to sell. Any decline in fair value compared to the carrying value of a property at the time of acquisition is charged against the allowance for loan losses. Any subsequent valuation adjustments to reflect declines in current fair value, as well as gains or losses on disposition are reported in gain/(loss) on OREO, net in the Consolidated Statements of Operations. Expenses incurred for holding or maintaining OREO properties such as real estate taxes, utilities, and insurance are charged as incurred to other operating expenses in the Consolidated Statements of Operations. Rental income earned, although generally minimal, is offset against other Operating expenses. Premises and Equipment Premises and equipment consists of leasehold improvements, furniture, fixtures, office equipment, computer equipment, software, and buildings. Premises and equipment are carried at cost, less accumulated depreciation. Also included in premises and equipment is technology initiatives in process. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. The estimated useful life for leasehold improvements is 10 years or the remaining term of the lease, if shorter. The estimated useful life for buildings is 40 years. The estimated useful life for furniture and fixtures is 6 years, 5 years for office equipment, and 3 years for computer equipment and software. The costs of improvements that extend the life of an asset are capitalized, while the cost of repairs and maintenance are expensed as incurred. Valuation of Goodwill/Intangible Assets and Analysis for Impairment The Company allocates the cost of an acquired entity to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Other intangible assets identified in acquisitions generally consist of advisory contracts. The value attributed to advisory contracts is based on the time period over which they are expected to generate economic benefits. The advisory contracts are generally amortized over 8-15 years, depending on the contract. The excess of the purchase price for acquisitions over the fair value of the net assets acquired, including other intangible assets, is recorded as goodwill. Goo |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 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 in force to the Company's workforce of approximately 7% of total staffing, 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 years ended December 31, 2019, 2018, and 2017. Severance Charges Other Associated Costs Total (In thousands) Accrued charges at December 31, 2016 $ 1,977 $ — $ 1,977 Costs incurred — — — Costs paid (1,640) — (1,640) Accrued charges at December 31, 2017 $ 337 $ — $ 337 Costs incurred 5,457 2,371 7,828 Costs paid (1,898) (1,582) (3,480) Accrued charges at December 31, 2018 $ 3,896 $ 789 $ 4,685 Costs incurred 1,646 — 1,646 Costs paid (5,016) — (5,016) Accrued charges at December 31, 2019 $ 526 $ 789 $ 1,315 |
Asset Sales and Divestitures
Asset Sales and Divestitures | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Asset Sales and Divestitures | ASSET SALES AND DIVESTITURES On December 3, 2018, the Company completed the sale of its ownership interest in BOS to the management team of BOS for an upfront cash payment and an eight-year revenue sharing agreement with BOS. The Company received $21.1 million of cash at closing and an eight On April 13, 2018, the Company completed the sale of its ownership interest in Anchor to the management team of Anchor for an upfront cash payment and future payments. The sale was previously announced in December 2017. The Company received $31.8 million of cash at closing and future payments that, at signing, had a net present value of $15.4 million. The Company expects to receive future contingent payments that have an estimated present value of $11.9 million The Company’s annual goodwill impairment test for Anchor resulted in a goodwill impairment charge of $24.9 million in the fourth quarter of 2017. The Company also recorded a loss on sale of $1.3 million representing closing costs of the sale. Income tax expense of $12.7 million was recorded at the time of the closing of the transaction as a result of a book to tax basis difference associated with nondeductible goodwill. The rationale for the sale was to focus the Company’s resources on businesses where we could offer holistic financial advice, along with integrated Wealth Management and Trust and Private Banking capabilities. This transaction also generated additional capital to reinvest. |
Investments Securities
Investments Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The following tables present a summary of investment securities: Amortized Unrealized Fair Gains Losses (In thousands) At December 31, 2019 Available-for-sale securities at fair value: U.S. government and agencies $ 19,955 $ 42 $ (57) $ 19,940 Government-sponsored entities 154,963 1,292 — 156,255 Municipal bonds 312,977 12,551 (73) 325,455 Mortgage-backed securities (1) 479,005 1,117 (3,488) 476,634 Total $ 966,900 $ 15,002 $ (3,618) $ 978,284 Held-to-maturity securities at amortized cost: Mortgage-backed securities (1) $ 48,212 $ 53 $ (316) $ 47,949 Total $ 48,212 $ 53 $ (316) $ 47,949 Equity securities at fair value: Money market mutual funds (2) $ 18,810 $ — $ — $ 18,810 Total $ 18,810 $ — $ — $ 18,810 Amortized Unrealized Fair Gains Losses (In thousands) 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 tables present the maturities of available-for-sale investment securities, based on contractual maturity, and the weighted average yields of such securities as of December 31, 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 curtailments are expected to have shorter lives. U.S. government and agencies (1) Government-sponsored entities (1) Amortized Fair Weighted Amortized Fair Weighted (In thousands) Within one year $ — $ — — % $ 11,498 $ 11,527 1.92 % After one, but within five years 9,999 10,041 1.75 % 128,356 129,501 1.97 % After five, but within ten years 9,956 9,899 1.70 % 15,109 15,227 2.00 % Greater than ten years — — — % — — — % Total $ 19,955 $ 19,940 1.73 % $ 154,963 $ 156,255 1.97 % Municipal bonds (1) Mortgage-backed securities (2) Amortized Fair Weighted Amortized Fair Weighted (In thousands) Within one year $ 18,164 $ 18,246 1.76 % $ 118 $ 117 1.91 % After one, but within five years 27,531 27,874 2.14 % 139,216 139,311 2.15 % After five, but within ten years 59,884 62,524 2.56 % 148,127 147,278 2.15 % Greater than ten years 207,398 216,811 2.66 % 191,544 189,928 2.21 % Total $ 312,977 $ 325,455 2.54 % $ 479,005 $ 476,634 2.17 % The following table presents the maturities of held-to-maturity investment securities, based on contractual maturity, and the weighted average yields of such securities as of December 31, 2019: Mortgage-backed securities (2) Amortized Fair Weighted (In thousands) Within one year $ — $ — — % After one, but within five years — — — % After five, but within ten years 39,389 39,173 2.22 % Greater than ten years 8,823 8,776 2.48 % Total $ 48,212 $ 47,949 2.27 % _________________ (1) Certain securities are callable before their final maturity. (2) Mortgage-backed securities are shown based on their final (contractual) maturity, but, due to prepayments, they are expected to have shorter lives. The weighted average remaining maturity at December 31, 2019 was 7.7 years for available-for-sale investment securities, with $239.0 million of available-for-sale investment securities callable before maturity. The weighted average remaining maturity at December 31, 2018 was 7.7 years for available-for-sale investment securities, with $217.0 million of available-for-sale investment securities callable before maturity. The weighted average remaining maturity for held-to-maturity investment securities was 10.0 years and 11.0 years at December 31, 2019 and December 31, 2018, respectively. The following table presents the maturities of equity securities, based on contractual maturity, and the weighted average yields of such securities as of December 31, 2019: Money market mutual funds Amortized Fair Weighted (In thousands) Within one year $ 18,810 $ 18,810 2.07 % After one, but within five years — — — % After five, but within ten years — — — % Greater than ten years — — — % Total $ 18,810 $ 18,810 2.07 % The following table presents the proceeds from sales, gross realized gains and gross realized losses for available-for-sale investment securities that were sold or called during the following periods as well as changes in 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. Year Ended December 31, 2019 2018 2017 (In thousands) Proceeds from sales (1) $ — $ 53,412 $ 81,221 Realized gains — 7 519 Realized losses — (597) (143) Change in unrealized gain/(loss) on equity securities reflected in the Consolidated Statements of Operations (2) — (23) n/a _________________ (1) Purchases and sales of money market mutual funds in operational accounts are excluded from the table above. (2) Money market mutual funds maintain a constant net asset value of $1.00 and therefore have no unrealized gain or loss. The following tables present information regarding securities at December 31, 2019 and 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 Unrealized Fair Unrealized Fair Unrealized Number of (In thousands, except number of securities) December 31, 2019 Available-for-sale securities U.S. government and agencies $ 9,899 $ (57) $ — $ — $ 9,899 $ (57) 1 Government-sponsored entities 1,725 — — — 1,725 — 1 Municipal bonds 9,149 (73) — — 9,149 (73) 4 Mortgage-backed securities (1) 140,723 (1,016) 187,043 (2,472) 327,766 (3,488) 85 Total $ 161,496 $ (1,146) $ 187,043 $ (2,472) $ 348,539 $ (3,618) 91 Held-to-maturity securities Mortgage-backed securities (1) $ 10,328 $ (11) $ 30,451 $ (305) $ 40,779 $ (316) 14 Total $ 10,328 $ (11) $ 30,451 $ (305) $ 40,779 $ (316) 14 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized Number 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 December 31, 2019, the U.S. government and agencies securities, government-sponsored entities securities and mortgage-backed securities in the first table above had current Standard and Poor's credit rating of AAA. The municipal bonds in the first table above had a current Standard and Poor’s credit rating of at least AA-. At December 31, 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 credit quality. At December 31, 2019 and December 31, 2018, the amount of investment securities in an unrealized loss position greater than 12 months, as well as in total, was primarily due to changes in interest rates and not due to credit quality. As of December 31, 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. Subsequent to December 31, 2019 and through the date of the filing of this Annual Report on Form 10-K, no securities were downgraded to below investment grade, nor were any securities in an unrealized loss position sold. The following table presents the concentration of securities with any one issuer that exceeds 10% of shareholders’ equity as of December 31, 2019: Amortized cost Fair value (In thousands) Federal Home Loan Mortgage Corporation $ 296,049 $ 295,434 Federal Home Loan Bank 89,167 90,111 Federal National Mortgage Association 199,064 198,128 Total $ 584,280 $ 583,673 Cost Method Investments The Company invests in low-income housing tax credits, which are included in Other assets, to encourage private capital investment in the construction and rehabilitation of low-income housing. The Company makes these investments as an indirect subsidy that allows investors, such as the Company, in a flow-through limited liability entity, such as limited partnerships or limited liability companies that manage or invest in qualified affordable housing projects, to receive the benefits of the tax credits allocated to the entity that owns the qualified affordable housing project. The Company also holds partnership interests in venture capital funds formed to provide financing to small businesses and to promote community development. The Company amortizes its investment in the low income housing tax credits using the proportional amortization method. Under the proportional amortization method, the Company amortizes the cost of its investment, in proportion to the tax credits and other tax benefits it receives to Income tax expense. Included in Income tax expense was amortization of $4.3 million, $3.0 million, and $2.7 million for the years ending December 31, 2019, 2018 and 2017, respectively. Also included in Income tax expense were the related tax benefits of $4.1 million, $2.9 million and $2.2 million for the years ending December 31, 2019, 2018, and 2017, respectively. The Company had $65.5 million and $54.4 million in cost method investments included in Other assets as of December 31, 2019 and December 31, 2018, respectively. In addition, the Company had $27.8 million and $23.0 million in unadvanced funds related to commitments, included in Other liabilities, in these investments as of December 31, 2019 and 2018, respectively. Under the proportional amortization method, an investment must be tested for impairment when events or changes in circumstances indicate that it is more likely than not that the carrying amount of the investment will not be realized. There was no indication of impairment for the years ending December 31, 2019 and 2018. |
Loans Receivable and Credit Qua
Loans Receivable and Credit Quality | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [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, Northern California, 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, Northern California, 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: December 31, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 694,034 $ 623,037 Commercial tax-exempt 447,927 451,671 Total commercial and industrial 1,141,961 1,074,708 Commercial real estate 2,551,274 2,395,692 Construction and land 225,983 240,306 Residential 2,839,155 2,948,973 Home equity 83,657 90,421 Consumer and other 134,674 143,058 Total $ 6,976,704 $ 6,893,158 During the year ended December 31, 2019, the Bank sold $190.7 million of residential mortgage loans resulting in a net gain of $1.2 million. The Company recorded $0.8 million in mortgage servicing rights intangible assets related to the sale of these residential mortgage loans with servicing rights retained. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 8: Goodwill and Other Intangible Assets” for additional information on the mortgage servicing rights. The following table presents nonaccrual loans receivable by class of receivable as of the dates indicated: December 31, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 582 $ 2,554 Commercial tax-exempt — — Total commercial and industrial 582 2,554 Commercial real estate — 546 Construction and land — — Residential 13,993 7,914 Home equity 1,525 3,031 Consumer and other 3 12 Total $ 16,103 $ 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 December 31, 2019 and 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 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: December 31, 2019 Accruing Past Due Nonaccrual Loans 30-59 60-89 Total Current 30-89 90 Days Total Current Total (In thousands) Commercial and industrial $ 828 $ — $ 828 $ — $ 241 $ 341 $ 582 $ 692,624 $ 694,034 Commercial tax-exempt — — — — — — — 447,927 447,927 Commercial real estate 1,420 — 1,420 — — — — 2,549,854 2,551,274 Construction and land — — — — — — — 225,983 225,983 Residential 19,133 1,038 20,171 9,593 759 3,641 13,993 2,804,991 2,839,155 Home equity 369 — 369 220 148 1,157 1,525 81,763 83,657 Consumer and other 1,008 2,149 3,157 1 — 2 3 131,514 134,674 Total $ 22,758 $ 3,187 $ 25,945 $ 9,814 $ 1,148 $ 5,141 $ 16,103 $ 6,934,656 $ 6,976,704 December 31, 2018 Accruing Past Due Nonaccrual Loans 30-59 60-89 Total Current 30-89 90 Days Total Current Total (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. The following tables present the loan portfolio’s credit risk profile by internally assigned grade and class of receivable as of the dates indicated: December 31, 2019 By Loan Grade or Nonaccrual Status Pass Special Accruing Nonaccrual Total (In thousands) Commercial and industrial $ 656,364 $ 12,101 $ 24,987 $ 582 $ 694,034 Commercial tax-exempt 436,721 7,154 4,052 — 447,927 Commercial real estate 2,495,702 32,014 23,558 — 2,551,274 Construction and land 225,526 457 — — 225,983 Residential 2,820,909 — 4,253 13,993 2,839,155 Home equity 81,060 — 1,072 1,525 83,657 Consumer and other 134,371 300 — 3 134,674 Total $ 6,850,653 $ 52,026 $ 57,922 $ 16,103 $ 6,976,704 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 year ended December 31, 2019 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 $ 470 $ 553 n/a $ 1,062 $ 268 Commercial tax-exempt — — n/a — — Commercial real estate 733 733 n/a 155 262 Construction and land — — n/a — — Residential 15,362 15,622 n/a 13,700 636 Home equity 1,557 2,119 n/a 2,095 35 Consumer and other — — n/a — — Subtotal $ 18,122 $ 19,027 n/a $ 17,012 $ 1,201 With an allowance recorded: Commercial and industrial $ 254 $ 254 $ 146 $ 736 $ 33 Commercial tax-exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential 538 538 67 1,130 23 Home equity 273 273 22 545 4 Consumer and other — — — — — Subtotal $ 1,065 $ 1,065 $ 235 $ 2,411 $ 60 Total: Commercial and industrial $ 724 $ 807 $ 146 $ 1,798 $ 301 Commercial tax-exempt — — — — — Commercial real estate 733 733 — 155 262 Construction and land — — — — — Residential 15,900 16,160 67 14,830 659 Home equity 1,830 2,392 22 2,640 39 Consumer and other — — — — — Total $ 19,187 $ 20,092 $ 235 $ 19,423 $ 1,261 ___________________ (1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, 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. The following table presents, by class of receivable, the average recorded investment balance of impaired loans and interest income recognized on impaired loans: Year Ended December 31, 2019 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) Commercial and industrial $ 1,798 $ 301 $ 2,245 $ 84 $ 1,750 $ 54 Commercial tax-exempt — — — — 1,001 80 Commercial real estate 155 262 6,089 2,249 10,078 1,868 Construction and land — — 50 16 172 — Residential 14,830 659 10,423 430 11,502 449 Home equity 2,640 39 2,000 35 449 1 Consumer and other — — 10 3 10 — Total $ 19,423 $ 1,261 $ 20,817 $ 2,817 $ 24,962 $ 2,452 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 December 31, 2019 the Bank has pledged $2.5 billion of loans in a blanket lien agreement with the FHLB. The Bank also has $395.3 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 to 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 December 31, 2019 and 2018, TDRs totaled $12.6 million and $8.0 million, respectively. As of December 31, 2019, $7.1 million of the $12.6 million of TDRs were on accrual status. As of December 31, 2018, $3.8 million of the $8.0 million of TDRs were on accrual status. As of December 31, 2019 and 2018, the Company had no commitments to lend additional funds to debtors for loans whose terms had been modified in a troubled debt restructuring. 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 year ended December 31, 2019 Restructured Year to Date TDRs that defaulted that # of Loans Pre-modification Post-modification # of Loans Post-modification (In thousands, except number of loans) Commercial and industrial 2 $ 449 $ 449 1 $ 270 Commercial tax-exempt — — — — — Commercial real estate 1 736 736 — — Construction and land — — — — — Residential 5 6,801 6,845 — — Home equity 2 525 534 — — Consumer and other — — — — — Total 10 $ 8,511 $ 8,564 1 $ 270 As of and for the year ended December 31, 2019 Extension of Term Temporary Rate Reduction Payment Deferral Combination of Concessions (1) Total Concessions # of Loans Post- # of Loans Post- # of Loans Post- # of Loans Post- # of Loans Post- (In thousands, except number of loans) Commercial and industrial 2 $ 449 — $ — — $ — — $ — 2 $ 449 Commercial tax-exempt — — — — — — — — — — Commercial real estate 1 736 — — — — — — 1 736 Construction and Land — — — — — — — — — — Residential — — 2 3,227 3 3,618 — — 5 6,845 Home Equity — — 1 283 1 251 — — 2 534 Consumer and other — — — — — — — — — — Total 3 $ 1,185 3 $ 3,510 4 $ 3,869 — $ — 10 $ 8,564 ____________________ (1) Combination of concessions includes loans that have had more than one modification, including extension of term, temporary reduction of interest rate, and/or payment deferral. As of and for the year ended December 31, 2018 Restructured Year to Date TDRs that defaulted that # of Loans Pre-modification Post-modification # of Loans Post-modification (In thousands, except number of loans) Commercial and industrial 3 $ 1,249 $ 1,249 1 $ 150 Commercial tax-exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential 2 2,175 2,210 — — Home equity — — — — — Consumer and other — — — — — Total 5 $ 3,424 $ 3,459 1 $ 150 As of and for the year ended December 31, 2018 Extension of Term Temporary Rate Reduction Payment Deferral Combination of Concessions (1) Total Concessions # of Loans Post- # of Loans Post- # of Loans Post- # of Loans Post- # of Loans Post- (In thousands, except number of loans) Commercial and industrial 2 $ 250 — $ — — $ — 1 $ 999 3 $ 1,249 Commercial tax-exempt — — — — — — — — — $ — Commercial real estate — — — — — — — — — $ — Construction and Land — — — — — — — — — $ — Residential — — 2 2,210 — — — — 2 $ 2,210 Home Equity — — — — — — — — — $ — Consumer and other — — — — — — — — — $ — Total 2 $ 250 2 $ 2,210 — $ — 1 $ 999 5 $ 3,459 ___________________ (1) Combination of concessions includes loans that have had more than one modification, including extension of term, temporary reduction of interest rate, and/or payment deferral. 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: December 31, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 14,533 $ 8,024 Commercial tax-exempt 18,101 19,105 Commercial real estate 121,929 60,688 Construction and land 75,451 39,966 Total loan participations serviced for others $ 230,014 $ 127,783 Residential $ 204,696 $ 33,168 Total loans serviced for others $ 204,696 $ 33,168 Any loans to senior management, executive officers, and directors are made in the ordinary course of business, under normal credit terms, including interest rates and collateral requirements prevailing at the time of origination for comparable transactions with other persons and do not represent more than normal credit risk. The Bank’s current policy is generally not to originate these types of loans. |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses | ALLOWANCE FOR LOAN LOSSESThe allowance for loan losses is reported as a reduction of outstanding loan balances, and totaled $72.0 million and $75.3 million at December 31, 2019 and 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 year ended December 31, 2019 2018 2017 (In thousands) Allowance for loan losses, beginning of year: Commercial and industrial $ 15,912 $ 11,735 $ 12,751 Commercial real estate 41,934 46,820 50,412 Construction and land 6,022 4,949 3,039 Residential 10,026 9,773 10,449 Home equity 1,284 835 1,035 Consumer and other 134 630 391 Total allowance for loan losses, beginning of year $ 75,312 $ 74,742 $ 78,077 Loans charged-off: Commercial and industrial $ (645) $ (709) $ (393) Commercial real estate — (135) — Construction and land — — — Residential — (16) (58) Home equity (562) — — Consumer and other (22) (39) (412) Total charge-offs $ (1,229) $ (899) $ (863) Recoveries on loans previously charged-off: Commercial and industrial $ 891 $ 680 $ 472 Commercial real estate 429 2,389 4,621 Construction and land — — 25 Residential 100 429 47 Home equity 10 1 — Consumer and other 33 168 32 Total recoveries $ 1,463 $ 3,667 $ 5,197 Provision/(credit) for loan losses: Commercial and industrial $ (94) $ 4,206 $ (1,095) Commercial real estate (1,598) (7,140) (8,213) Construction and land (903) 1,073 1,885 Residential (1,269) (160) (665) Home equity 46 448 (200) Consumer and other 254 (625) 619 Total provision/(credit) for loan losses $ (3,564) $ (2,198) $ (7,669) Allowance for loan losses, end of year: Commercial and industrial $ 16,064 $ 15,912 $ 11,735 Commercial real estate 40,765 41,934 46,820 Construction and land 5,119 6,022 4,949 Residential 8,857 10,026 9,773 Home equity 778 1,284 835 Consumer and other 399 134 630 Total allowance for loan losses, end of year $ 71,982 $ 75,312 $ 74,742 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 if required. Loan losses are charged to the allowance when available information confirms that specific loans or portions thereof, are uncollectable. Recoveries on loans previously charged-off are added back to the allowance when received in cash or when the Bank takes possession of other assets. The provision/(credit) for loan losses and related balance in the allowance for loan losses for tax-exempt commercial and industrial loans are included with commercial and industrial. The provision/(credit) for loan losses and related balance in the allowance for loan losses for tax-exempt commercial real estate loans are included with commercial real estate. 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 at December 31, 2019 and 2018 by portfolio segment, disaggregated by method of impairment analysis. The Company had no loans acquired with deteriorated credit quality at December 31, 2019 or 2018. December 31, 2019 Individually Evaluated Collectively Evaluated Total Recorded Allowance Recorded Allowance Recorded Allowance (In thousands) Commercial and industrial $ 724 $ 146 $ 1,141,237 $ 15,918 $ 1,141,961 $ 16,064 Commercial real estate 733 — 2,550,541 40,765 2,551,274 40,765 Construction and land — — 225,983 5,119 225,983 5,119 Residential 15,900 67 2,823,255 8,790 2,839,155 8,857 Home equity 1,830 22 81,827 756 83,657 778 Consumer and other — — 134,674 399 134,674 399 Total $ 19,187 $ 235 $ 6,957,517 $ 71,747 $ 6,976,704 $ 71,982 December 31, 2018 Individually Evaluated Collectively Evaluated Total Recorded Allowance Recorded Allowance Recorded Allowance (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 |
Premises, Equipment, and Leases
Premises, Equipment, and Leases | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises, Equipment, and Leases | PREMISES, EQUIPMENT, AND LEASES Premises and equipment consist of the following: As of December 31, 2019 2018 (In thousands) Leasehold improvements $ 55,482 $ 50,489 Furniture, fixtures, and equipment 56,134 51,921 Buildings 3,159 3,159 Subtotal 114,775 105,569 Less: Accumulated depreciation 70,248 60,157 Premises and equipment, net $ 44,527 $ 45,412 Depreciation expense related to premises and equipment was $11.2 million, $10.7 million, and $8.1 million for the years ended December 31, 2019, 2018, and 2017, respectively. On January 1, 2019, the Company adopted ASU 2016-02. As stated in Part II. Item 8. “Notes to 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 operating ROU assets and operating lease liabilities on the Consolidated Balance Sheets for real estate operating leases, significant 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 Statements 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 five The following table presents information about the Company's leases as of the dates indicated: Twelve months ended December 31, 2019 (In thousands) Lease cost Operating lease cost $ 19,004 Short-term lease cost 52 Variable lease cost 291 Less: Sublease income (101) Total operating lease cost $ 19,246 Twelve months ended December 31, 2019 (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 $ 20,230 ROU assets obtained in exchange for new operating lease liabilities $ 8,131 Weighted average remaining lease term for operating leases 8.1 years Weighted average discount rate for operating leases 3.2 % 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 the date indicated: December 31, 2019 (In thousands) 2020 $ 19,930 2021 19,799 2022 19,760 2023 18,972 2024 12,949 Thereafter 44,182 Total future minimum lease payments $ 135,592 Less: Amounts representing interest (18,378) Present value of net future minimum lease payments $ 117,214 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 the date indicated: 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 years ended December 31, 2018 and 2017 was $21.3 million and $21.4 million, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following tables detail the changes in carrying value of goodwill by segment during the years ended December 31, 2019 and 2018. As of December 31, 2018 As of December 31, 2019 (In thousands) Goodwill Wealth Management and Trust (1) $ 57,607 $ 57,607 Total goodwill $ 57,607 $ 57,607 ___________________ (1) The goodwill balance in the Wealth Management and Trust segment as of December 31, 2019 includes goodwill from the legacy KLS entity that was merged with Boston Private Wealth in 2019. The KLS goodwill balance is included in the Wealth Management and Trust segment as of December 31, 2018 for comparative purposes. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies” for additional information on the merger. As of December 31, 2017 Transfer to held for sale (1) As of December 31, 2018 (In thousands) Goodwill Wealth Management and Trust $ 57,607 $ — $ 57,607 Holding Company and Eliminations 17,991 (17,991) — Total goodwill $ 75,598 $ (17,991) $ 57,607 ___________________ (1) The sale of the Company's ownership interest in BOS closed in December 2018. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 3: Asset Sales and Divestitures” for additional information on the sale. The following table details total goodwill and the cumulative impairment charges thereon as of December 31, 2019 and 2018: Goodwill prior Cumulative Goodwill (In thousands) Private Banking $ 34,281 $ (34,281) $ — Wealth Management and Trust 67,135 (9,528) 57,607 Holding Company and Eliminations 75,162 (75,162) — Total goodwill at December 31, 2019 and 2018 $ 176,578 $ (118,971) $ 57,607 In 2019 and 2018, the Company recorded no additional goodwill. Management performed its annual goodwill and indefinite-lived intangible asset impairment testing during the fourth quarter of 2019 for applicable reporting units. There was no additional testing required for indefinite-lived intangible assets in 2019. 2019 Impairment Testing and Results Management performed its annual goodwill and indefinite-lived intangible asset impairment testing during the fourth quarter of 2019 for the Wealth Management and Trust reporting unit. For the 2019 testing, a qualitative assessment was performed for Boston Private Wealth, which includes the legacy goodwill balance at KLS that was combined as part of the merger of Boston Private Wealth and KLS in the third quarter of 2019. Based on the procedures performed, no additional testing was required. Neither Boston Private Bank nor DGHM has any goodwill as of December 31, 2019. 2018 Impairment Testing and Results Management performed its annual goodwill and indefinite-lived intangible asset impairment testing during the fourth quarter of 2018 for applicable reporting units. Based on the procedures performed, no additional testing was required. Neither Boston Private Bank nor DGHM had any goodwill as of December 31, 2018. Intangible Assets The following table shows the gross and net carrying amounts of identifiable intangible assets at December 31, 2019 and 2018: 2019 2018 Gross Accumulated Net Gross Accumulated Net (In thousands) Advisory contracts $ 23,950 $ 14,376 $ 9,574 $ 30,859 $ 18,632 $ 12,227 Mortgage servicing rights 816 38 778 — — — Total $ 24,766 $ 14,414 $ 10,352 $ 30,859 $ 18,632 $ 12,227 The Company added $0.8 million in mortgage servicing rights intangible assets in 2019 related to the sale of residential mortgage loans with servicing rights retained. There were no additional identifiable intangible assets recorded in 2018. Intangible assets amortization was $2.7 million, $2.9 million, and $5.6 million for 2019, 2018, and 2017, respectively. Management reviews, and adjusts if necessary, intangible asset amortization schedules to ensure that the remaining life on the amortization schedule accurately reflects the useful life of the intangible asset. The weighted average amortization period of these intangible assets is 4.77 years. The estimated annual amortization expense for these identifiable intangible assets over the next five years is: Estimated intangible (In thousands) 2020 $ 2,528 2021 2,021 2022 2,002 2023 1,986 2024 1,485 Thereafter 330 Total $ 10,352 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative 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. 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 December 31, 2019 and 2018. December 31, 2019 December 31, 2018 Asset derivatives Liability derivatives Asset derivatives Liability derivatives Balance Fair Balance Fair Balance Fair Balance Fair (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 customer swaps Other assets 36,089 Other liabilities 36,580 Other assets 21,889 Other liabilities 22,385 Risk participation agreements Other assets 10 Other liabilities 242 Other assets 2 Other liabilities 152 Total $ 36,099 $ 36,822 $ 22,444 $ 22,537 ___________________ (1) For additional details, see Part II. Item 8. “Financial Statements and Supplementary Data - Note 21: Fair Value Measurements.” The following table presents the effect of the Company’s derivative financial instruments in the Consolidated Statements of Operations for the years ended December 31, 2019 and 2018. Derivatives in Amount of Gain or (Loss) Recognized in Location of Gain Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Years Ended December 31, 2019 2018 2019 2018 (In thousands) Interest rate swaps $ (46) $ 990 Interest Expense $ 508 $ 907 Total $ (46) $ 990 $ 508 $ 907 ___________________ (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. 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 December 31, 2019 and 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-capitalized 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 December 31, 2019 and 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 December 31, 2019 and 2018. As of December 31, 2019 and 2018, the termination amounts related to collateral determinations of derivatives in a liability position were $35.7 million and $2.2 million, respectively. The Company has minimum collateral posting thresholds with its derivative counterparties. As of December 31, 2019, the Company had pledged securities with a market value of $40.0 million against its obligations under these agreements. As of December 31, 2018, the Company had no pledged securities. The collateral posted is typically greater than the current liability position; however, due to timing of liability position changes at period end, the funding of a collateral shortfall may take place shortly following period end. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company entered into interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed payments. The Company entered into interest rate swaps to hedge London Interbank Offered Rate (“LIBOR”) -indexed brokered deposits and the LIBOR component of the total cost of certain FHLB borrowings. As of December 31, 2019, there were no cash flow hedges. As of December 31, 2018, the Bank had entered into a total of four interest rate swaps, one during 2017 with an effective date of March 22, 2017 and three during 2013 with effective dates of June 1, 2014, March 1, 2014, and August 1, 2013. The one interest rate swap entered into during 2017 had a notional amount of $60 million with a term of 2.25 years. This interest rate swap effectively fixed the Bank’s interest payments on $60 million in interest-related cash outflows attributable to changes in the LIBOR component of FHLB borrowing liabilities at a rate of 1.65%. The three interest rate swaps entered into during 2013 each had a notional amount of $25 million and had terms ranging from five Prior to the adoption of ASU 2017-12, which was adopted on a modified retrospective basis on January 1, 2018, the Company used the “Hypothetical Derivative Method” described in ASC 815, Derivatives and Hedging (“ASC 815”), for quarterly prospective and retrospective assessments of hedge effectiveness, as well as for measurements of hedge ineffectiveness. Under this method, the Company assessed the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. The effective portion of changes in the fair value of the derivative was initially reported in other comprehensive income (“OCI”) (outside of earnings) and subsequently reclassified to earnings in Interest and dividend income when the hedged transactions affected earnings. Ineffectiveness resulting from the hedge was recorded as a gain or loss in the Consolidated Statements of Operations as part of Fees and other income. There was an immaterial amount of hedge ineffectiveness during the years ended December 31, 2019 and 2018. The Company also monitors the risk of counterparty default on an ongoing basis. Upon implementation of ASU 2017-12, for derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. A portion of the balance reported in Accumulated other comprehensive income related to derivatives will be reclassified to Interest expense as interest payments are made or received on the Company’s interest rate swaps. The Company monitors the risk of counterparty default on an ongoing basis. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from two 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 Statements of Operations in Other income. As of December 31, 2019 and 2018, the Bank had 198 and 160 derivatives, respectively, related to this program, comprised of interest rate swaps and caps, with an aggregate notional amount of $1.6 billion and $1.3 billion, respectively, as of December 31, 2019 and 2018. As of December 31, 2019, there were no foreign currency exchange contracts and, as of December 31, 2018, there were two foreign currency exchange contract with an aggregate notional amount of $0.1 million. 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 December 31, 2019, there were seven of these risk participation agreements with an aggregate notional amount of $58.8 million and, as of December 31, 2018, there were seven of these risk participation transactions with an aggregate notional amount of $59.8 million. The Bank has also participated out to other financial institutions a pro-rated portion of swaps executed by the Bank. The other financial institution has no obligations under the risk participation agreements unless the borrowers default on their swap transactions with the Bank and the swaps are in liability positions to the borrower. In those instances, the other financial institution has agreed to pay the Bank a portion of the swap’s termination value at the time of the default. The derivative transactions entered into as part of these agreements are not designated, as per ASC 815, as qualifying hedging relationships and are, therefore, marked-to-market through earnings each period. As of December 31, 2019, there were four of these risk participation transactions with a pro-rated notional amount of $20.5 million. As of December 31, 2018, there were four of these risk participation transactions with a pro-rated notional amount of $20.7 million. The following table presents the effect of the Bank’s derivative financial instruments, not designated as hedging instruments, in the Consolidated Statements of Operations for the years ended December 31, 2019, 2018 and 2017. Derivatives Not Location of Gain or (Loss) Amount of Gain or (Loss), Net, Recognized 2019 2018 2017 (In thousands) Interest rate swaps Other income/(expense) $ 6 $ (118) $ (851) Risk participation agreements Other income/(expense) (82) 158 354 Total $ (76) $ 40 $ (497) |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | DEPOSITS Deposits are summarized as follows: December 31, 2019 2018 (In thousands) Demand deposits (noninterest bearing) $ 1,971,013 $ 1,951,274 Savings and NOW (1) 646,200 700,520 Money market (1) 3,969,330 3,338,891 Certificates of deposit under $100,000 (1) 145,226 265,883 Certificates of deposit $100,000 or more to less than $250,000 (1) 94,095 98,120 Certificates of deposit $250,000 or more 415,612 426,482 Total $ 7,241,476 $ 6,781,170 ___________________ (1) Includes brokered deposits. Certificates of deposit had the following schedule of maturities: December 31, 2019 2018 (In thousands) Less than 3 months remaining $ 285,236 $ 239,789 3 to 6 months remaining 187,854 220,136 6 to 12 months remaining 154,837 235,337 Total due within 1 year $ 627,927 $ 695,262 1 to 2 years remaining 24,094 91,945 2 to 3 years remaining 2,402 2,887 3 to 4 years remaining 25 21 4 to 5 years remaining — — More than 5 years remaining 485 370 Total $ 654,933 $ 790,485 Interest expense on certificates of deposits of $100,000 or greater was $8.6 million, $5.5 million and $3.1 million for the years ended December 31, 2019, 2018, and 2017, respectively. At December 31, 2019 and 2018, there was $1.3 million and $1.0 million of overdrawn deposit accounts reclassified to loans, respectively. |
Federal Funds Purchased and Sec
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 12 Months Ended |
Dec. 31, 2019 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | FEDERAL FUNDS PURCHASED AND SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Federal Funds Securities Sold (In thousands) 2019 Outstanding at end of year $ — $ 53,398 Maximum outstanding at any month-end $ 230,000 $ 72,684 Average balance for the year $ 87,901 $ 57,358 Weighted average rate at end of year — % 0.16 % Weighted average rate paid for the year 2.28 % 0.17 % 2018 Outstanding at end of year $ 250,000 $ 36,928 Maximum outstanding at any month-end $ 250,000 $ 85,257 Average balance for the year $ 36,722 $ 65,370 Weighted average rate at end of year 2.64 % 0.15 % Weighted average rate paid for the year 1.89 % 0.11 % The federal funds purchased generally mature overnight from the transaction date. Repurchase agreements are generally linked to commercial demand deposit accounts with an overnight sweep feature. In a repurchase agreement transaction, the Bank will generally sell an investment security, agreeing to repurchase either the same or a substantially identical security on a specified later date at a price slightly greater than the original sales price. The difference in the sale price and repurchase price is the cost of the use of the proceeds, or interest expense. Repurchase transactions are accounted for as financing arrangements rather than as sales of such securities, and the obligation to repurchase such securities is reflected as a liability in the Company’s Consolidated Balance Sheets. The securities underlying the agreements remain under the Company’s control. Investment securities with a fair value of $262.6 million and $193.7 million were pledged as collateral for the securities sold under agreements to repurchase at December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, the Bank had unused federal funds lines with correspondent banks of $500.0 million and $465.0 million, respectively. |
Federal Home Loan Bank Borrowin
Federal Home Loan Bank Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Federal Home Loan Bank Borrowings | FEDERAL HOME LOAN BANK BORROWINGSThe Bank is a member of the FHLB of Boston. As a member of the FHLB of Boston, the Bank has access to short-term and long-term borrowings. Borrowings from the FHLB are secured by the Bank’s stock investment in the FHLB and a blanket lien on “qualified collateral” defined principally as a percentage of the principal balance of certain types of mortgage loans. The stock investment cannot be used for additional borrowing collateral. The percentage of collateral valuation from the FHLB varies between 50% and 76% based on the underlying collateral. The Bank had loans pledged as collateral with a book value of $2.5 billion and $2.6 billion at December 31, 2019 and 2018, respectively. The Bank had borrowings outstanding of $350.8 million and $420.1 million at December 31, 2019 and 2018, respectively. Based on the collateral and the valuations applied, less the borrowings outstanding, the Bank had available credit with the FHLB of Boston of $1.4 billion at each of December 31, 2019 and 2018. A summary of borrowings from the FHLB is as follows: December 31, 2019 Amount Weighted (In thousands) Within 1 year $ 274,365 2.43 % Over 1 to 2 years 61,740 2.19 % Over 2 to 3 years 3,985 1.93 % Over 3 to 4 years 7,349 3.24 % Over 4 to 5 years — — % Over 5 years 3,390 0.18 % Total $ 350,829 2.38 % As of December 31, 2019 and December 31, 2018, the Company had no FHLB borrowings that were callable by the FHLB prior to maturity. FHLB Stock As a member of the FHLB, the Bank is required to own FHLB stock based on a percentage of outstanding advances in addition to a membership stock ownership requirement. For the borrowings with the FHLB of Boston, the Bank is required to own FHLB stock of at least 3.0% to 4.0% of outstanding advances depending on the terms of the advance. In addition, the Bank is required to have a minimum membership stock investment which is based on a percentage of certain assets as reported in the Bank’s FDIC Call Report. FHLB stock owned in excess of the minimum requirements can be redeemed at par upon request by a member. |
Junior Subordinated Debentures
Junior Subordinated Debentures | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Junior Subordinated Borrowings | JUNIOR SUBORDINATED DEBENTURES The schedule below presents the detail of the Company’s junior subordinated debentures: December 31, 2019 2018 (In thousands) Boston Private Capital Trust II Junior Subordinated Debentures $ 103,093 $ 103,093 Boston Private Capital Trust I Junior Subordinated Debentures 3,270 3,270 Total $ 106,363 $ 106,363 All of the Company’s junior subordinated debentures mature in more than five years. Boston Private Capital Trust II Junior Subordinated Debentures In September 2005, the Company and Boston Private Capital Trust II, a Delaware statutory trust (“Trust II”) entered into a Purchase Agreement for the sale of $100 million of trust preferred securities issued by Trust II and guaranteed by the Company on a subordinated basis. Trust II’s preferred securities pay interest quarterly and had an annual distribution rate of 6.25% up to, but not including, December 30, 2010. Subsequently, Trust II’s preferred securities converted to a floating rate of a three-month LIBOR plus 1.68%; provided, however, that the interest rate does not exceed the highest rate permitted by New York law, and may be modified by the U.S. law of general application. At December 31, 2019, the interest rate for the Trust II’s preferred securities was 3.64%. Each of the Trust II preferred securities represents an undivided beneficial interest in the assets of Trust II. The Company owns all of Trust II’s common securities. Trust II’s only assets are the junior subordinated debentures issued to it by the Company on substantially the same payment terms as Trust II’s preferred securities. The Company’s investment in Trust II was $3.1 million at both December 31, 2019 and 2018. The junior subordinated debentures mature on December 30, 2035 and became redeemable after December 30, 2010. The Company has the following covenants with regard to Trust II: • For so long as Trust II’s preferred securities remain outstanding, the Company shall maintain 100% ownership of the Trust II’s common securities; • The Company will use its commercially reasonable efforts to ensure Trust II remains a statutory trust, except in connection with a distribution of debt securities to the holders of the Trust II securities in liquidation of Trust II, the redemption of all Trust II’s securities or mergers, consolidations or incorporation, each as permitted by Trust II’s declaration of trust; • To continue to be classified as a grantor trust for U.S. federal income tax purposes; and • The Company will ensure each holder of Trust II’s preferred securities is treated as owning an undivided beneficial interest in the junior subordinated debentures. At December 31, 2019 and 2018, the Company was in compliance with the above covenants. So long as the Company is not in default in the payment of interest on the junior subordinated debentures, the Company has the right under the indenture to defer payments of interest for up to 20 consecutive quarterly periods. The Company does not currently intend to exercise its right to defer interest payments on the junior debentures issued to Trust II. If the Company defers interest payments, it would be subject to certain restrictions relating to the payment of dividends on or purchases of its capital stock and payments on its debt securities ranking equal with or junior to the junior subordinated debentures. Boston Private Capital Trust I Junior Subordinated Debentures In 2004, the Company and Boston Private Capital Trust I, a Delaware statutory trust (“Trust I”), entered into a Purchase Agreement and an option, which was exercised in 2004, for the sale of a combined total of $105 million of convertible trust preferred securities to be issued by Trust I and guaranteed by the Company on a subordinated basis. The convertible trust preferred securities have a liquidation amount of $50.00 per security, pay interest quarterly and have a fixed distribution rate of 4.875%. The quarterly distributions are cumulative. The junior subordinated convertible debentures will mature on October 1, 2034. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | NONCONTROLLING INTERESTS Noncontrolling interests consist of equity owned by management of the Company’s respective majority-owned affiliates, DGHM, BOS and Anchor, for the periods in which the Company had an ownership interest in them. Net income attributable to noncontrolling interests in the Consolidated Statements of Operations represents the Net income allocated to the noncontrolling interest owners of the affiliates. Net income allocated to the noncontrolling interest owners was $0.4 million, $3.5 million, and $4.5 million for the years ended December 31, 2019, 2018, and 2017, 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 ("ASC 480"), 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 $1.4 million and $2.5 million at December 31, 2019 and 2018, respectively. The aggregate amount of such Redeemable noncontrolling equity interests are recorded at the estimated maximum redemption values. In addition, the Company had no Noncontrolling interests included in permanent Shareholders’ equity at December 31, 2019 and 2018, respectively. 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, or a multiple of earnings before interest, taxes, depreciation, and amortization (“EBITDA”). 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. Generally, these put and call redemption features refer to shareholder rights of both the Company and the noncontrolling interest owners of the Company’s majority-owned affiliate companies. The affiliate company noncontrolling interests generally take the form of limited liability company (“LLC”) units, profit 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 noncontrolling 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. The following is a summary, by individual affiliate, of the terms of the put and call options: DGHM The Company acquired an 80% interest in DGHM on February 6, 2004. DGHM management and employees own the remaining 20% interest in DGHM. The DGHM operating agreement describes a process for the orderly transfer of noncontrolling equity interests between the Company and the DGHM noncontrolling interest owners at a contractually agreed upon value, with appraisal rights for all parties. Certain events, such as a change in control, death, disability, retirement, resignation or termination, may result in the repurchase of the noncontrolling equity interests by the Company at the then contractually agreed upon value. The DGHM operating agreement provides a formulaic mechanism to determine the then value of the noncontrolling equity interests. These noncontrolling equity interests have a five BOS The Company acquired approximately a 70% interest in BOS through a series of purchases dating back to February 5, 2004. The remaining approximate 30% was owned by BOS principals and certain retired principals. The BOS operating agreement described a procedure for the orderly transfer of noncontrolling equity interests between the BOS noncontrolling interest owners and the Company at the then fair value, with appraisal rights for all parties. Certain events, such as death, disability, retirement, resignation, or voluntary termination, subject to the vesting period, would have resulted in repurchase of the noncontrolling equity interests by the Company at the then fair value, unless another noncontrolling interest owner opted to purchase the noncontrolling equity interests in question. These noncontrolling equity interests had vesting periods of up to seven In 2015, the Company entered into an updated operating agreement with BOS which provided for a certain portion of the BOS noncontrolling interest owners to include modified contingent call and put redemption features. These modified noncontrolling interests had the same terms and conditions as the previously issued noncontrolling interests with the exception that they required the approval of the Company’s CEO in order to be exercised. Therefore, these modified noncontrolling interests were not considered to be mandatorily redeemable and were not included in the Redeemable noncontrolling interests within mezzanine equity, but rather within permanent equity. In December 2018, the Company completed the sale of its ownership interest in BOS. Anchor The Company, through its acquisition of Anchor, acquired approximately an 80% interest in each of Anchor and Anchor Russell on June 1, 2006. Effective January 1, 2013, Anchor Russell merged into Anchor, with Anchor as the surviving entity. Anchor management, employees, and certain retired employees owned the remaining noncontrolling equity interests of the firm, approximately 20%. The Anchor operating agreement described a process for the orderly transfer of noncontrolling equity interests between the Company and the Anchor noncontrolling interest owners at a contractually agreed upon value, with appraisal rights for all parties. Certain events, such as death, disability, retirement, resignation, or termination, could have resulted in repurchase of the noncontrolling equity interests by the Company at the then contractually agreed upon value. The Anchor agreement provided a formulaic mechanism to determine the then value of the noncontrolling equity interests. These noncontrolling equity interests had a five equity interests could have put up to 10% of his or her outstanding equity interests annually to the Company. The six In 2013, the Company sold certain repurchased noncontrolling interests to employees at Anchor with modified contingent call and put redemption features. These modified noncontrolling interests had the same terms and conditions as the previously issued noncontrolling interests with the exception that they required the approval of the Company’s CEO in order to be exercised. Therefore, these modified noncontrolling interests were not considered to be mandatorily redeemable and were not included in the Redeemable noncontrolling interests within mezzanine equity, but rather within permanent equity. In April 2018, the Company completed the sale of its ownership interest in Anchor. The following tables present a roll forward of the Company’s Redeemable noncontrolling interests and Noncontrolling interests for the periods indicated: Year ended December 31, 2019 December 31, 2018 December 31, 2017 Redeemable noncontrolling interests Noncontrolling interests Redeemable noncontrolling interests Noncontrolling interests Redeemable noncontrolling interests Noncontrolling interests (In thousands) Noncontrolling interests at beginning of period $ 2,526 $ — $ 17,461 $ 5,186 $ 16,972 $ 4,161 Net income attributable to noncontrolling interests 362 — 2,630 857 3,354 1,114 Distributions (362) — (2,537) (817) (3,277) (1,083) Purchases/(sales) of ownership interests (56) — (12,951) (5,272) 235 85 Amortization of equity compensation 46 — 478 161 413 935 Adjustments to fair value (1,133) — (2,555) (115) (236) (26) Noncontrolling interests at end of period $ 1,383 $ — $ 2,526 $ — $ 17,461 $ 5,186 Impact on EPS from Certain Changes in Redemption Value |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | EQUITY Preferred Stock The Company had no depositary shares outstanding at December 31, 2019 and December 31, 2018, and 2,000,000 depositary shares outstanding at December 31, 2017 (the “Depositary Shares”). Each Depositary Share represents a 1/40th interest in a share of the Company’s 6.95% Non-Cumulative Perpetual Preferred Stock, Series D, par value $1.00 per share and liquidation preference of $1,000 per share (the “Series D preferred stock”). On May 8, 2018, the Company provided notice of the redemption of all of the Company's issued and outstanding Series D preferred stock. The redemption was in accordance with the terms of the Company’s Restated Articles of Organization, as amended, and the Master Depositary Agreement between the Company and Computershare, Inc. (the "Depositary"). There were 50,000 shares of Series D preferred stock, or $50.0 million aggregate liquidation preference, outstanding at the time of redemption. The redemption date for the Series D preferred stock was June 15, 2018 (the “Redemption Date”). Under the terms of the Series D preferred stock, the redemption price was 100% of the liquidation preference of the Series D preferred stock to be redeemed, or $1,000.00 per share of Series D preferred stock, together with any accumulated and unpaid dividends on such Series D preferred stock up to, but not including, the redemption date. Upon the receipt of the aggregate redemption price of the Series D preferred stock, the Depositary redeemed those depositary shares held by the public and traded on the NASDAQ Global Select Market under the symbol “BPFHP”. There were 2,000,000 Depositary Shares, or $50.0 million aggregate liquidation preference, outstanding at the time of the redemption. Under the terms of the Depositary Shares, the redemption price was 100% of the liquidation preference of the Depositary Shares to be redeemed, or $25.00 per Depositary Share, together with any accumulated and unpaid dividends on such Depositary Shares up to, but not including, the redemption date. Common Stock The Company has 170 million shares of common stock authorized for issuance. At December 31, 2019, the Company had 83,265,674 shares outstanding and 86734326 shares available for future issuance. At December 31, 2018, the Company had 83,655,651 shares outstanding and 86,344,349 shares available for future issuance. In the third quarter of 2019, the Company's Board of Directors approved, and the Company received regulatory non-objection for, a share repurchase program of up to $20.0 million of the Company's outstanding common shares. Under the program, shares may be repurchased from time to time in the open market for a one Warrants to Purchase Common Stock At December 31, 2019 and December 31, 2018, the Company had no outstanding warrants. At December 31, 2017 the company had 1,692,755 warrants to purchase shares of common stock outstanding. These warrants were initially issued to the U.S. Department of the Treasury and expired on November 21, 2018. Any warrants that were not exercised by November 21, 2018 have expired. Accumulated Other Comprehensive Income Other comprehensive income/(loss) represents the change in equity of the Company during a year from transactions and other events and circumstances from non-shareholder sources. It includes all changes in equity during a year, except those resulting from investments by shareholders and distributions to shareholders. The following table presents the Company’s comprehensive income/(loss) and related tax effect for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Pre- Tax Net of Pre- Tax Net of Pre- Tax Net of (In thousands) Unrealized gain/(loss) on securities available-for-sale Net gains/(losses) arising during period $ 36,092 $ 10,101 $ 25,991 $ (13,205) $ (3,702) $ (9,503) $ 7,782 $ 3,063 $ 4,719 Less: Adjustment for realized gains/(losses), net — — — (596) (170) (426) 376 154 222 Net change 36,092 10,101 25,991 (12,609) (3,532) (9,077) 7,406 2,909 4,497 Unrealized gain/(loss) on cash flow hedges Net gains/(losses) arising during period (46) (15) (31) 985 285 700 325 135 190 Add: scheduled reclass and other (508) (148) (360) (907) (261) (646) 1,179 491 688 Net change (554) (163) (391) 78 24 54 1,504 626 878 Unrealized gain/(loss) on other Net gains/(losses) arising during period (432) (126) (306) 416 120 296 84 34 50 Net change (432) (126) (306) 416 120 296 84 34 50 Total other comprehensive income/(loss) 35,106 9,812 25,294 (12,115) (3,388) (8,727) 8,994 3,569 5,425 Net income attributable to the Company (1) 102,619 22,591 80,028 117,921 37,537 80,384 86,787 46,196 40,591 Total comprehensive income $ 137,725 $ 32,403 $ 105,322 $ 105,806 $ 34,149 $ 71,657 $ 95,781 $ 49,765 $ 46,016 ___________________ (1) Pre-tax Net income attributable to the Company is calculated as Income before income taxes plus Net income from discontinued operations, if any, less Net income attributable to noncontrolling interests. The following table presents a summary of the amounts reclassified from Accumulated other comprehensive income/(loss) for the years ended December 31, 2019, 2018, and 2017: Description of component of Year ended December 31, Affected line item in 2019 2018 2017 (In thousands) Adjustment for realized gains/(losses) on securities available-for-sale, net: Pre-tax gain/(loss) $ — $ (596) $ 376 Gain/(loss) on sale of investments, net Tax (expense)/benefit — 170 (154) Income tax (expense)/benefit Net $ — $ (426) $ 222 Net income/(loss) attributable to the Company Net realized gain/(loss) on cash flow hedges: Hedge related to deposits Pre-tax gain/(loss) $ 508 $ 907 $ (1,179) Interest (expense) Tax (expense)/benefit (148) (261) 491 Income tax (expense)/benefit Net $ 360 $ 646 $ (688) Net income/(loss) attributable to the Company Total reclassifications for the period, net of tax $ 360 $ 646 $ (688) 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. The following table presents the after-tax changes in the components of the Company’s Accumulated other comprehensive income/(loss) for the years ended December 31, 2019, 2018, and 2017: Components of accumulated other comprehensive income/(loss) Unrealized gain/(loss) on securities available-for-sale Unrealized Unrealized Accumulated (In thousands) Balance at December 31, 2016 $ (11,194) $ (605) $ (749) $ (12,548) Other comprehensive income/(loss) before reclassifications 4,719 190 50 4,959 Amounts reclassified from other comprehensive income/(loss) (222) 688 — 466 Other comprehensive income/(loss), net 4,497 878 50 5,425 Balance at December 31, 2017 (8,140) 332 (850) (8,658) Other comprehensive income/(loss) before reclassifications (9,503) 700 296 (8,507) Amounts reclassified from other comprehensive income/(loss) 426 (646) — (220) Other comprehensive income/(loss), net (9,077) 54 296 (8,727) Reclassification due to the adoption of ASU 2017-12 and 2016-01 (339) 5 — (334) Balance at December 31, 2018 (17,556) 391 (554) (17,719) Other comprehensive income/(loss) before reclassifications 25,991 (31) (306) 25,654 Amounts reclassified from other comprehensive income/(loss) — (360) — (360) Other comprehensive income/(loss), net 25,991 (391) (306) 25,294 Balance at December 31, 2019 $ 8,435 $ — $ (860) $ 7,575 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Earnings Per Share (“EPS”) Basic EPS is computed by dividing Net income attributable to common shareholders by the weighted average number of common shares outstanding during the year. Diluted EPS is determined in the same manner as basic EPS except that the number of shares is increased assuming exercise or contingent issuance of the options, warrants or other dilutive securities; and conversion of the convertible trust preferred securities, if any. Additionally, when dilutive, interest expense (net of tax) related to the convertible trust preferred securities, if any, is added back to Net income attributable to common shareholders. The calculation of diluted EPS excludes the potential dilution of common shares and the inclusion of any related expenses if the effect is antidilutive. The following tables present a reconciliation of the components of basic and diluted EPS computations for the periods indicated: For the year ended 2019 2018 2017 (In thousands, except share and per share data) Basic earnings per share - Numerator: Net income from continuing operations $ 80,390 $ 81,869 $ 40,189 Less: Net income attributable to noncontrolling interests 362 3,487 4,468 Net income from continuing operations attributable to the Company 80,028 78,382 35,721 Decrease/(increase) in noncontrolling interests’ redemption values (1) 1,143 2,303 (1,412) Dividends on preferred stock — (3,985) (3,475) Total adjustments to income attributable to common shareholders 1,143 (1,682) (4,887) Net income from continuing operations attributable to common shareholders, treasury stock method 81,171 76,700 30,834 Net income from discontinued operations — 2,002 4,870 Net income attributable to common shareholders, treasury stock method $ 81,171 $ 78,702 $ 35,704 Basic earnings per share - Denominator: Weighted average basic common shares outstanding 83,430,740 83,596,685 82,430,633 Per share data - Basic earnings per share from: Continuing operations $ 0.97 $ 0.92 $ 0.37 Discontinued operations $ — $ 0.02 $ 0.06 Total attributable to common shareholders $ 0.97 $ 0.94 $ 0.43 For the year ended 2019 2018 2017 (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 $ 81,171 $ 76,700 $ 30,834 Net income from discontinued operations — 2,002 4,870 Net income attributable to common shareholders, after assumed dilution $ 81,171 $ 78,702 $ 35,704 Diluted earnings per share - Denominator: Weighted average basic common shares outstanding 83,430,740 83,596,685 82,430,633 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) 490,052 1,002,764 1,313,953 Warrants to purchase common stock (2) — 731,865 1,057,979 Dilutive common shares 490,052 1,734,629 2,371,932 Weighted average diluted common shares outstanding (2) 83,920,792 85,331,314 84,802,565 Per share data - Diluted earnings per share from: Continuing operations $ 0.97 $ 0.90 $ 0.36 Discontinued operations $ — $ 0.02 $ 0.06 Total attributable to common shareholders $ 0.97 $ 0.92 $ 0.42 Dividends per share declared and paid on common stock $ 0.48 $ 0.48 $ 0.44 _____________________ (1) See Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” for a description of the redemption values related to the Redeemable noncontrolling interests. In accordance with ASC 480, an increase in redemption value from period to period reduces Net income attributable to common shareholders. Decreases in redemption value from period to period increase Net 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. As of December 31, 2019, the cumulative change in redemption value remains a cumulative increase since adoption in 2009; therefore, subsequent changes will impact the earnings per share calculation. (2) The diluted EPS computations for the years ended December 31, 2019, 2018, and 2017 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: For the year ended 2019 2018 2017 Shares excluded due to anti-dilution (treasury stock method): (In thousands) Potential common shares from: Market-based stock options — 51 — Convertible trust preferred securities (1) 1 1 1 Total shares excluded due to anti-dilution 1 52 1 For the year ended 2019 2018 2017 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 (2) 853 209 67 Total shares excluded due to exercise price exceeding the average market price of common shares during the period 853 209 67 _____________________ (1) If the effect of the conversion of the trust preferred securities would have been dilutive, an immaterial amount of interest expense, net of tax, related to the convertible trust preferred securities would have been added back to Net income attributable to common shareholders for the diluted EPS computation for the years presented. (2) Options to purchase shares of common stock, non-participating performance- and certain time-based restricted stock, and other dilutive securities that were outstanding at period ends were not included in the computation of diluted EPS or in the above anti-dilution table because their exercise or conversion prices were greater than the average market price of the common shares during the respective periods. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of Income tax expense for continuing operations for the years ended December 31, 2019, 2018, and 2017 are as follows: Year Ended December 31, 2019 2018 2017 (In thousands) Current expense: Federal $ 8,592 $ 20,165 $ 17,176 State 8,576 12,152 6,509 Total current expense 17,168 32,317 23,685 Deferred expense: Federal 5,033 2,857 19,820 State 390 2,363 2,691 Total deferred expense 5,423 5,220 22,511 Income tax expense $ 22,591 $ 37,537 $ 46,196 Income tax expense attributable to Income from continuing operations differs from the amounts computed by applying the Federal statutory rate to pre-tax income from continuing operations. Reconciliations between the Federal statutory income tax rate of 21% to the effective income tax rate for the years ended December 31, 2019 and 2018 and the federal statutory income tax rate of 35% to the effective income tax rate for the year ended December 31, 2017 are as follows: Year Ended December 31, 2019 2018 2017 Statutory Federal income tax rate 21.0 % 21.0 % 35.0 % Increase/(decrease) resulting from: State and local income tax, net of Federal tax benefit 6.9 % 9.6 % 6.9 % Book versus tax difference — % 6.7 % — % Tax-exempt interest, net (5.6) % (4.8) % (10.3) % Tax credits (4.1) % (2.9) % (3.1) % Investments in affordable housing projects 3.4 % 1.9 % 2.2 % Noncontrolling interests — % (0.5) % (1.5) % Re-measurement of deferred tax assets and liabilities — % — % 13.7 % Nondeductible goodwill — % — % 10.1 % Other, net 0.3 % 0.4 % 0.5 % Effective income tax rate 21.9 % 31.4 % 53.5 % On December 22, 2017, H.R. 1, the Tax Cuts and Jobs Act (the “Tax Act”), was enacted by the U.S. government. Substantially all of the provisions of the Tax Act were effective as of January 1, 2018. The Tax Act includes significant changes to the Internal Revenue Code of 1986, as amended, including amendments which significantly change the taxation of business entities. The more significant changes in the Tax Act that impact the Company are the reduction in the federal corporate tax rate from 35% to 21% and the changes to the deductibility of executive compensation. Under ASC 740, the tax effects of changes in tax laws must be recognized in the period in which the law is enacted, or the fourth quarter of 2017 for the Tax Act. ASC 740 also requires deferred tax assets and liabilities to be measured at the enacted tax rate expected to apply when temporary differences are to be realized or settled. In the fourth quarter of 2017, the Company re-measured its deferred tax assets and liabilities at the 21% federal corporate tax rate, reevaluated its investments in affordable housing projects using the 21% federal corporate tax rate, and reduced its deferred tax assets associated with executive compensation that is no longer deductible. As a result of these changes, the Company recorded a federal tax expense of $12.9 million in the fourth quarter of 2017. The components of gross deferred tax assets and gross deferred tax liabilities at December 31, 2019 and 2018 are as follows: December 31, 2019 2018 (In thousands) Gross deferred tax assets: Allowance for loan and OREO losses $ 21,789 $ 21,919 Interest on nonaccrual loans 172 254 Stock compensation 1,710 2,679 Deferred and accrued compensation 13,096 15,540 Lease liabilities 34,129 — Unrealized loss on investments — 6,781 Other 1,129 1,294 Total gross deferred tax assets 72,025 48,467 Gross deferred tax liabilities: Goodwill and acquired intangible assets 13,333 11,492 Fixed assets 4,518 2,248 Right-of-use assets 32,454 — Prepaid expenses 385 344 Contingent payments 6,764 7,680 Unrealized gain on investments 2,949 — Other 239 65 Total gross deferred tax liabilities 60,642 21,829 Net deferred tax assets $ 11,383 $ 26,638 Of the $15.2 million net decrease in the Company’s net deferred tax asset during 2019, $5.4 million was recognized as deferred income tax expense, and $9.8 million was recognized as an increase to shareholders’ equity. In accordance with ASC 740, deferred tax assets are to be reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of the tax benefit depends upon the existence of sufficient taxable income of the appropriate character within the carry-forward periods. The Company believes the existing net deductible temporary differences that give rise to the net deferred tax assets will reverse in future periods when the Company expects to generate taxable income. Other positive evidence to support the realization of the Company’s net deferred tax assets includes: • The Company had cumulative pre-tax income, as adjusted for permanent book-to-tax differences, in the period 2017 through 2019. • Certain tax planning strategies are available to the Company, such as reducing investments in tax-exempt securities. • The Company has not had any operating loss or tax credit carryovers expiring unused in recent years. A reconciliation of the beginning and ending gross amount of unrecognized tax benefits under the provisions of ASC 740-10 is as follows: 2019 2018 2017 (In thousands) Balance at January 1 $ 935 $ 1,025 $ 974 Additions based on tax positions related to the current year 177 149 183 Additions based on tax positions taken in prior years — — 227 Decreases based on the expiration of statute of limitations (203) (239) (359) Balance at December 31 $ 909 $ 935 $ 1,025 The Company does not currently believe there is a reasonable possibility of any significant change to unrecognized tax benefits within the next twelve months. Excluded from the gross amount of unrecognized tax benefits for the years ended December 31, 2019, 2018, and 2017 are the federal tax benefits associated with the gross amount of state unrecognized tax benefits which, if recognized, would affect the effective tax rate. The net amount of unrecognized tax benefits is $0.8 million, $0.8 million, and $0.9 million at December 31, 2019, 2018, and 2017, respectively, which, if recognized would affect the effective tax rate. The Company classifies interest and penalties, if applicable, related to unrecognized tax benefits as a component of income tax expense in the Consolidated Statements of Operations. Interest and penalties recognized as part of the Company’s income tax expense was immaterial for the years ending December 31, 2019, 2018, and 2017. The accrued amounts for interest and penalties were immaterial as of December 31, 2019, 2018, and 2017. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefits | EMPLOYEE BENEFITS Employee 401(k) Profit Sharing Plan The Company established a corporate-wide 401(k) Profit Sharing Plan (the “401(k) Plan”) for the benefit of the employees of the Company and its affiliates, which became effective on July 1, 2002. The 401(k) Plan is a 401(k) savings and retirement plan that is designed to qualify as an ERISA section 404(c) plan. Generally, employees who are at least twenty-one (21) years of age are eligible to participate in the plan on their date of hire. Employee contributions may be matched based on a predetermined formula and additional discretionary contributions may be made. 401(k) Plan expense was $2.3 million, $3.1 million, and $3.3 million, for the years ended December 31, 2019, 2018, and 2017, respectively. Salary Continuation Plans The Bank maintains a salary continuation plan for certain former officers in the Bank’s Northern California market. The officers became eligible for benefits under the salary continuation plan if they reached a defined retirement age while working for the Bank. The Bank also has a deferred compensation plan for certain former directors of the former private banking affiliate in Northern California that was merged into the Bank. The compensation expense relating to each contract is accounted for individually. The expense relating to these plans was $0.1 million for each of the years ended December 31, 2019, 2018, and 2017. The amount recognized in Other liabilities in the Consolidated Balance Sheets was $0.9 million and $0.8 million at December 31, 2019 and 2018, respectively. The Bank has purchased life insurance contracts to help fund these plans. The Bank has single premium life insurance policies with cash surrender values totaling $6.4 million and $6.3 million, which are included in Other assets in the Consolidated Balance Sheets, as of December 31, 2019 and 2018, respectively. The Bank also maintains a salary continuation plan for certain former officers of the Bank’s Southern California market. The plan provides for payments to the participants at the age of retirement. The expense relating to this plan was $0.1 million for each of the years ended December 31, 2019, 2018, and 2017. The net amount recognized in Other liabilities in the Consolidated Balance Sheets was $1.3 million and $1.4 million at December 31, 2019 and 2018, respectively. The Bank has purchased life insurance contracts to help fund these plans. These life insurance policies have cash surrender values totaling $5.0 million at December 31, 2019 and 2018, which are included in Other assets in the Consolidated Balance Sheets. Deferred Compensation Plan The Company offers a deferred compensation plan (the “Deferred Compensation Plan”) that enables certain executives to elect to defer a portion of their compensation. The amounts deferred are excluded from the employee’s taxable income and are not deductible for income tax purposes by the Company until paid. The net deferred amount related to the Deferred Compensation Plan in Other liabilities in the Consolidated Balance Sheets was $6.1 million and $6.8 million at December 31, 2019 and 2018, respectively. Increases and decreases in the value of the Deferred Compensation Plan are recognized as Salaries and benefits expense in the Consolidated Statements of Operations. The expense relating to the Deferred Compensation Plan was an expense of $1.2 million, an expense credit of $0.4 million, and an expense of $0.9 million for the years ended December 31, 2019, 2018, and 2017, respectively. The Company has adopted a special trust for the Deferred Compensation Plan called a rabbi trust. A 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. The net amount recognized in other assets in the Consolidated Balance Sheets was $6.1 million and $6.8 million at December 31, 2019 and 2018, respectively. Increases and decreases in the value of the rabbi trust are recognized in Other income in the Consolidated Statements of Operations. The income relating to this plan was a gain of $1.2 million, a loss of $0.4 million, and a gain of $0.9 million for the years ended December 31, 2019, 2018, and 2017, respectively. Stock-Based Incentive Plans At December 31, 2019, the Company has three stock-based compensation plans. These plans encourage and enable the officers, employees, non-employee directors, and other key persons of the Company to acquire a proprietary interest in the Company. The Amended and Restated 2009 Stock Option and Incentive Plan (the “2009 Plan”), replaced the Company’s 2004 Stock Option and Incentive Plan. Under the 2009 Plan, the Company may grant options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock awards, performance share awards, performance stock units, and dividend equivalent rights to its officers, employees, and non-employee directors of the Company for an amount not to exceed 2% of the total shares of common stock outstanding as of the last business day of the preceding fiscal year. The 2009 Plan provides for the authorization and issuance of 4,000,000 shares, along with any residual shares from previous plans. Forfeited shares are added back to the amount of shares authorized. Under the 2009 Plan, the exercise price of each option shall not be less than 100% of the fair market value of the stock on the date the options are granted. Under the Boston Private Financial Holdings, Inc. 2010 Inducement Stock Plan (the “Inducement Plan”), the Company may grant equity awards to new employees as an inducement to join the Company. The Inducement Plan provides for the authorization and issuance of 1,245,000 shares of the Company’s common stock. Forfeited shares are added back to the amount of shares authorized. The terms of the Inducement Plan are substantially similar to the terms of the 2009 Plan. The Company issued zero shares, 576,612 shares, and 24,569 shares under this plan in conjunction with executive new hires in 2019, 2018, and 2017, respectively. The Company maintains a qualified Employee Stock Purchase Plan (“ESPP”). Under the ESPP, eligible employees may purchase common stock of the Company at 85% of the lower of the closing price of the Company’s common stock on the first or last day of a six Share-based payments recorded in Salaries and benefits expense are as follows: Year Ended December 31, 2019 2018 2017 (In thousands) Stock option and ESPP expense $ 1,676 $ 616 $ 480 Nonvested share expense 3,076 6,059 7,794 Subtotal 4,752 6,675 8,274 Tax benefit 1,223 1,784 3,188 Stock-based compensation expense, net of tax benefit $ 3,529 $ 4,891 $ 5,086 Stock Options A summary of option activity for the year ended December 31, 2019 is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Aggregate Intrinsic Value ($ in thousands) Outstanding at December 31, 2018 663,455 $ 11.44 Granted 437,016 $ 11.02 Exercised 83,090 $ 6.78 Forfeited 16,234 $ 11.08 Expired — $ — Outstanding at December 31, 2019 1,001,147 $ 11.65 8.7 years $ 725.0 Exercisable at December 31, 2019 94,294 $ 9.07 6.4 years $ 301.0 The total intrinsic value of options exercised during the years ended December 31, 2019, 2018, and 2017 was $0.4 million, $1.5 million, and $0.9 million, respectively. As of December 31, 2019, there was $1.7 million unrecognized compensation cost related to stock option arrangements granted in 2018 and 2019 that is expected to be recognized over a weighted average period of 2.9 years. Restricted Stock A summary of the Company’s nonvested shares as of December 31, 2019 and changes during the year ended December 31, 2019, including shares under both the 2009 Plan and the Inducement Plan, is as follows: Shares Weighted Average Grant-Date Nonvested at December 31, 2018 1,213,928 $ 14.12 Granted 844,691 $ 11.05 Vested 551,400 $ 11.99 Forfeited 232,929 $ 13.85 Nonvested at December 31, 2019 1,274,290 $ 12.89 The fair value of nonvested shares is determined based on the closing price of the Company’s stock on the grant date. The weighted average grant-date fair value of shares granted during the years ended December 31, 2019, 2018, and 2017 was $11.05, $16.11, and $15.55, respectively. At December 31, 2019, there was $7.8 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements under the 2009 Plan and the Inducement Plan, combined. That cost is expected to be recognized over a weighted average period of 2.27 years. The total fair value of shares that vested during the years ended December 31, 2019, 2018, and 2017 was $6.6 million, $8.1 million, and $8.0 million, respectively. Included in the restricted stock balances above are performance shares. The Company recognizes the expense for performance shares based upon the most likely outcome of shares to be issued based on current forecasts. At December 31, 2019, there were 589,124 performance shares outstanding, which could increase up to 1,178,248 shares. If the maximum number of performance shares is issued, the Company would incur an additional $7.8 million of compensation costs related to these additional 589,124 shares. Supplemental Executive Retirement Plans The Company has a non-qualified supplemental executive retirement plan (“SERP”) with a former executive officer of the Company. The SERP, which is unfunded, provides a defined cash benefit based on a formula using average compensation, years of service, and age at retirement of the executive. The estimated actuarial present value of the projected benefit obligation was $7.5 million and $7.3 million at December 31, 2019 and 2018, respectively. The expense associated with the SERP was $0.8 million for the year ended December 31, 2019, due to a decrease in the discount rate, which correspondingly increased the pension benefit obligation in 2019. The SERP expense was zero and $0.4 million for the years ended 2018, and 2017, respectively. The discount rate used to calculate the SERP liability was 3.10%, 4.15%, and 3.60% for the years ended December 31, 2019, 2018, and 2017, respectively. The Bank has a SERP with various former executives of the Pacific Northwest market. The SERP, which is unfunded, provides a defined cash benefit based on a formula using compensation, years of service, and age at retirement of the executives. The benefits for each executive under the plan are accrued until the full vesting age of 65. The actuarial present value of the projected benefit obligation was $3.1 million and $2.9 million at December 31, 2019 and 2018, respectively. The expense associated with the SERP was $0.2 million for each of the years ended December 31, 2019, 2018, and 2017. The discount rate used to calculate the SERP liability was 3.10%, 4.18%, and 3.37%, for the years ended December 31, 2019, 2018, and 2017, respectively. KLS has a long-term incentive plan (“LTIP”) with certain of its managing directors and assumed by BPW. This LTIP, which is unfunded, was amended in 2018. The plan amendment in 2018 “froze” the benefits under the LTIP based on the cash payout that would be due to the managing directors as of December 31, 2017. The cash payment at separation of service, which was determined based on the profit share and a multiple based on years of service as of December 31, 2017, is payable in three equal annual installments following separation of service. The Company has accrued $7.9 million and $9.2 million at December 31, 2019 and 2018, respectively, for future separation of service payments. The LTIP was effective beginning January 1, 2010. The expense associated with the LTIP was $0.7 million, $1.6 million, and $0.5 million for the years ended December 31, 2019, 2018, and 2017, respectively. Included in the 2018 expense was a $0.8 million charge, which was included with restructuring in the Consolidated Statements of Operations, related to the plan amendment. The discount rate used to calculate the liability was 3.10%, 4.10%, and 3.33% for the years ended December 31, 2019, 2018, and 2017, respectively. There will not be any future service cost associated with the LTIP. There will be charges associated with interest costs and actuarial gains/losses until the final payouts are made. |
Other Operating Expense
Other Operating Expense | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense | OTHER OPERATING EXPENSE Major components of other operating expense are as follows: Year Ended December 31, 2019 2018 2017 (1) (In thousands) Insurance $ 2,655 $ 3,084 $ 3,286 Employee travel and meals 2,508 2,918 3,910 Other banking expenses 1,752 1,893 1,541 Pension costs - non service 1,669 423 (95) Publications and dues 1,171 1,123 1,028 Postage, express mail, and courier 630 840 974 Forms and supplies 479 704 890 Trading errors 1 511 108 OREO expenses — (21) 4 Provision/(credit) for off-balance sheet loan commitments (105) (157) (24) Other 3,175 2,843 2,852 Total $ 13,935 $ 14,161 $ 14,474 ___________________ (1) As a result of the adoption of ASU 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Reportable Segments
Reportable Segments | 12 Months Ended |
Dec. 31, 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, Northern California 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 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, Northern California and Southern California. Changes to Segment Reporting The 2018 and 2017 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 the Holding Company and Eliminations segment for all periods presented. The results of Anchor and BOS for the periods owned are included in the Holding Company and Eliminations segment. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 3: Asset Sales and Divestitures” 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 years ended December 31, 2019, 2018, and 2017. Year ended December 31, 2019 2018 2017 Private Banking (1) (In thousands) Net interest income $ 231,796 $ 238,036 $ 227,280 Fees and other income 13,869 9,366 10,856 Total revenues 245,665 247,402 238,136 Provision/(credit) for loan losses (3,564) (2,198) (7,669) Operating expense (2) 157,891 165,263 149,008 Income before income taxes 91,338 84,337 96,797 Income tax expense 19,110 16,313 43,356 Net income from continuing operations 72,228 68,024 53,441 Net income attributable to the Company $ 72,228 $ 68,024 $ 53,441 Assets $ 8,746,289 $ 8,424,967 $ 8,177,304 Amortization of intangibles $ 37 $ — $ — Depreciation $ 9,737 $ 8,646 $ 5,639 Year ended December 31, 2019 2018 2017 Wealth Management and Trust (1) (In thousands) Net interest income $ 407 $ 338 $ 122 Fees and other income 75,949 79,192 76,237 Total revenues 76,356 79,530 76,359 Operating expense (2) 58,375 66,492 69,966 Income before income taxes 17,981 13,038 6,393 Income tax expense 5,768 4,145 3,982 Net income from continuing operations $ 12,213 $ 8,893 $ 2,411 Net income attributable to the Company $ 12,213 $ 8,893 $ 2,411 Assets $ 148,803 $ 130,346 $ 120,061 Amortization of intangibles $ 2,654 $ 2,775 $ 2,882 Depreciation $ 1,297 $ 1,660 $ 1,893 Year ended December 31, 2019 2018 2017 Holding Company and Eliminations (1) (3) (In thousands) Net interest income (4) $ (4,127) $ (3,808) $ (2,716) Fees and other income 11,729 61,439 66,873 Total revenues 7,602 57,631 64,157 Operating expense 13,940 35,600 80,962 Income/(loss) before income taxes (6,338) 22,031 (16,805) Income tax expense/(benefit) (2,287) 17,079 (1,142) Net income/(loss) from continuing operations (4,051) 4,952 (15,663) Net income attributable to noncontrolling interests 362 3,487 4,468 Net income from Discontinued operations (5) — 2,002 4,870 Net income/(loss) attributable to the Company $ (4,413) $ 3,467 $ (15,261) Assets (including eliminations) $ (64,592) $ (60,688) $ 14,379 Amortization of intangibles $ — $ 154 $ 2,719 Depreciation $ 194 $ 388 $ 574 Year ended December 31, 2019 2018 2017 Total Company (1) (3) (In thousands) Net interest income $ 228,076 $ 234,566 $ 224,686 Fees and other income 101,547 149,997 153,966 Total revenues 329,623 384,563 378,652 Provision/(credit) for loan losses (3,564) (2,198) (7,669) Operating expense 230,206 267,355 299,936 Income before income taxes 102,981 119,406 86,385 Income tax expense 22,591 37,537 46,196 Net income from continuing operations 80,390 81,869 40,189 Net income attributable to noncontrolling interests 362 3,487 4,468 Net income from Discontinued operations (5) — 2,002 4,870 Net income attributable to the Company $ 80,028 $ 80,384 $ 40,591 Assets $ 8,830,501 $ 8,494,625 $ 8,311,744 Amortization of intangibles $ 2,691 $ 2,929 $ 5,601 Depreciation $ 11,228 $ 10,694 $ 8,106 ___________________ (1) Due to rounding, the sum of individual segment results may not add up to the Total Company results. (2) Operating expense includes Restructuring expense of $1.3 million and $0.4 million for the year ended December 31, 2019 related to the Private Banking and Wealth Management and Trust segments, respectively. Operating expense includes Restructuring expense of $6.6 million and $1.2 million for the year ended December 31, 2018 related to the Private Banking and Wealth Management and Trust segments, respectively. (3) The results of Anchor and BOS for the periods owned in 2018 and 2017 are included in the Holding Company and Eliminations segment and the Total Company. Most categories have decreased in 2019 relative to 2018 and 2017 primarily driven by the sales of Anchor and BOS. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 3: Asset Sales and Divestitures” for additional information. (4) Interest expense on junior subordinated debentures is included in the Holding Company and Eliminations segment. (5) The Holding Company and Eliminations segment calculation of Net income attributable to the Company includes Net income from discontinued operations of zero , $2.0 million and $4.9 million for the years ended December 31, 2019, 2018, and 2017 , respectively. The Company received the final payment related to a revenue sharing agreement with Westfield |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 December 31, 2019 and 2018, aggregated by the level in the fair value hierarchy within which those measurements fall: As of December 31, 2019 Fair value measurements at reporting date using: Quoted prices in Significant other Significant (In thousands) Assets: Available-for-sale securities U.S. government and agencies $ 19,940 $ — $ 19,940 $ — Government-sponsored entities 156,255 — 156,255 — Municipal bonds 325,455 — 325,455 — Mortgage-backed securities 476,634 — 476,634 — Total available-for-sale securities 978,284 — 978,284 — Equity securities 18,810 18,810 — — Derivatives - interest rate customer swaps 36,089 — 36,089 — Derivatives - risk participation agreements 10 — 10 — Trading securities held in the “rabbi trust” (1) 6,119 6,119 — — Liabilities: Derivatives - interest rate customer swaps $ 36,580 $ — $ 36,580 $ — Derivatives - risk participation agreements 242 — 242 — Deferred compensation “rabbi trust” (1) 6,112 6,112 — — As of December 31, 2018 Fair value measurements at reporting date using: Quoted prices in Significant other Significant (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 December 31, 2019 and 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 December 31, 2019 or 2018 were categorized as Level 3. As of December 31, 2019 and 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 December 31, 2019 and 2018. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 9: 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 December 31, 2019 and 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 a Level 1 measurement as of December 31, 2019 and 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 Sheets. 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 Sheets. 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 December 31, 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 as of December 31, 2019 or 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 December 31, 2019 and 2018, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall: As of December 31, 2019 Fair value measurements at reporting date using: Gain (losses) Quoted prices in Significant Significant Year ended December 31, 2019 (In thousands) Assets: Impaired loans (1) $ 109 $ — $ — $ 109 $ 710 $ 109 $ — $ — $ 109 $ 710 ___________________ (1) Collateral-dependent impaired loans held as of December 31, 2019 that had write-downs in fair value or whose specific reserve changed during 2019. As of December 31, 2018 Fair value measurements at reporting date using: Gain (losses) Quoted prices in Significant Significant Year ended December 31, 2018 (In thousands) Assets: Impaired loans (1) $ 2,192 $ — $ — $ 2,192 $ (1,648) $ 2,192 $ — $ — $ 2,192 $ (1,648) ___________________ (1) Collateral-dependent impaired loans held as of December 31, 2018 that had write-downs in fair value or whose specific reserve changed during 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 December 31, 2019 Fair Valuation Unobservable Range of Inputs Utilized Weighted Average of Inputs Utilized (In thousands) Impaired Loans $ 109 Appraisals of Discount for costs to sell 10% 10% Appraisal adjustments —% —% As of December 31, 2018 Fair Valuation Unobservable Range of Inputs Utilized Weighted Average of Inputs Utilized (In thousands) Impaired Loans $ 2,192 Appraisals of Collateral Discount for costs to sell —% - 9% 5% 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 (other than certain loans, as noted below): As of December 31, 2019 Book Value Fair Value Quoted prices Significant Significant (In thousands) FINANCIAL ASSETS: Cash and cash equivalents $ 292,479 $ 292,479 $ 292,479 $ — $ — Investment securities held-to-maturity 48,212 47,949 — 47,949 — Loans held for sale 7,386 7,475 — 7,475 — Loans, net 6,904,722 6,883,360 — — 6,883,360 Other financial assets 67,348 67,348 — 67,348 — FINANCIAL LIABILITIES: Deposits $ 7,241,476 $ 7,241,739 $ — $ 7,241,739 $ — Securities sold under agreements to repurchase 53,398 53,398 — 53,398 — Federal Home Loan Bank borrowings 350,829 351,233 — 351,233 — Junior subordinated debentures 106,363 96,363 — — 96,363 Other financial liabilities 1,957 1,957 — 1,957 — As of December 31, 2018 Book Value Fair Value Quoted prices Significant Significant (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 are classified as Level 1. Investment Securities Held-to-Maturity As of December 31, 2019, investment securities held-to-maturity 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 at December 31, 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 indices. Loans, net are included in the Level 3 fair value category based upon the inputs and valuation techniques used. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies” 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 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 are classified as Level 2. 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 are classified as Level 2 measurements. Securities Sold Under Agreements to Repurchase The fair value of securities sold under agreements to repurchase is estimated based on contractual cash flows discounted at the Bank’s incremental borrowing rate for FHLB borrowings with similar maturities and 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 value reported for FHLB borrowings is 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 value of the junior subordinated debentures issued by Boston Private Capital Trust I and Boston Private Capital Trust II were 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. 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. |
Financial Instruments With Off-
Financial Instruments With Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its clients. These financial instruments include commitments to originate loans, unadvanced portion of loans, unused lines of credit, standby letters of credit, commitments to sell loans, and rate locks related to loans that if originated will be held for sale. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to originate loans, the unadvanced portion of loans, and the unused lines of credit are agreements to lend to a client, provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since certain commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each client’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance by a client to a third party. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to clients. Investors have recourse to the Company for the refund of premiums paid on loans sold which pay off early within the time stipulated in the sale contract. Investors have recourse to the Company on any sold loans that are deemed to have been fraudulent or misrepresented. In addition, investors would require the Company to repurchase any loan sold which has a first payment default. The Company has not repurchased any loans during the years ended December 31, 2019 and 2018. Financial instruments with off-balance sheet risk are summarized as follows: December 31, 2019 2018 (In thousands) Commitments to originate loans Variable rate $ 60,473 $ 59,766 Fixed rate 63,747 38,332 Total commitments to originate new loans $ 124,220 $ 98,098 Unadvanced portion of loans and unused lines of credit $ 1,468,782 $ 1,413,737 Standby letters of credit $ 49,117 $ 36,755 Forward commitments to sell loans $ 11,850 $ 4,657 |
Boston Private Financial Holdin
Boston Private Financial Holdings, Inc. (Parent Company Only) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Boston Private Financial Holdings, Inc. (Parent Company Only) | BOSTON PRIVATE FINANCIAL HOLDINGS, INC. (PARENT COMPANY ONLY) Condensed Balance Sheets December 31, 2019 December 31, 2018 (In thousands) Assets: Cash and cash equivalents $ 51,324 $ 51,088 Investment in wholly-owned and majority-owned subsidiaries 857,062 802,642 Investment in partnerships and trusts 6,340 6,340 Other assets 27,453 36,483 Total assets $ 942,179 $ 896,553 Liabilities: Junior subordinated debentures $ 106,363 $ 106,363 Deferred income taxes 2,895 12,968 Other liabilities 12,520 20,742 Total liabilities 121,778 140,073 Redeemable Noncontrolling Interests (1) 1,383 2,526 Total Shareholders’ Equity 819,018 753,954 Total liabilities, redeemable noncontrolling interests and shareholders’ equity $ 942,179 $ 896,553 ___________________ (1) Includes noncontrolling interests, if any, and the maximum redemption value of Redeemable noncontrolling interests. Condensed Statements of Operations Year ended December 31, 2019 2018 2017 (In thousands) Income: Interest income $ 62 $ 107 $ 180 Dividends from subsidiaries 54,606 45,448 49,316 Gain/(loss) on sale of affiliates — 18,142 (1,264) Other income 1,557 59 193 Total income 56,225 63,756 48,425 Operating Expense: Salaries and employee benefits 2,106 2,121 4,061 Professional fees 1,241 1,381 1,369 Interest expense 4,189 3,925 2,919 Other expenses 2,185 1,406 1,424 Total operating expense 9,721 8,833 9,773 Income before income taxes 46,504 54,923 38,652 Income tax expense/(benefit) (2,639) 14,628 (6,880) Net income from discontinued operations — 2,002 4,870 Income before equity in undistributed earnings of subsidiaries 49,143 42,297 50,402 Equity/(loss) in undistributed earnings of subsidiaries 30,885 38,087 (9,811) Net income attributable to the Company $ 80,028 $ 80,384 $ 40,591 Condensed Statements of Cash Flows Year ended December 31, 2019 2018 2017 (In thousands) Cash flows from operating activities: Net income attributable to the Company $ 80,028 $ 80,384 $ 40,591 Net income from discontinued operations — 2,002 4,870 Net income from continuing operations 80,028 78,382 35,721 Adjustments to reconcile Net income from continuing operations to Net cash provided by/(used in) operating activities: Equity in earnings/(loss) of subsidiaries: (85,480) (83,232) (39,326) Dividends from subsidiaries: 54,606 45,448 49,316 Depreciation and amortization 201 (186) 3,553 (Gain)/loss on sale of affiliates — (18,142) 1,264 Net decrease/(increase) in other operating activities (8,108) 13,181 (2,440) Net cash provided by/(used in) operating activities of continuing operations 41,247 35,451 48,088 Net cash provided by/(used in) operating activities of discontinued operations — 2,002 4,870 Net cash provided by/(used in) operating activities 41,247 37,453 52,958 Cash flows from investing activities: Contingent consideration from divestitures 4,507 1,233 — Capital investments in subsidiaries (78) (96) (54) Cash received from divestitures — 52,981 — Net cash provided by/(used in) investing activities 4,429 54,118 (54) Cash flows from financing activities: Redemption of Series D preferred stock — (50,000) — Equity sales in minority-owned subsidiaries — 1,021 1,410 Repurchase of common stock (7,193) (20,000) — Dividends paid to common shareholders (40,380) (40,685) (37,054) Dividends paid to preferred shareholders — (1,738) (3,475) Proceeds from stock option exercises 562 1,661 882 Proceeds from issuance of common stock, net 2,413 434 2,740 Other equity adjustments (842) 2,463 (5,740) Net cash provided by/(used in) financing activities (45,440) (106,844) (41,237) Net (decrease)/increase in cash and cash equivalents 236 (15,273) 11,667 Cash and cash equivalents at beginning of year 51,088 66,361 54,694 Cash and cash equivalents at end of year $ 51,324 $ 51,088 $ 66,361 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Matters | REGULATORY MATTERS Registered Investment Advisors The Company’s RIAs are highly regulated, primarily at the federal level by the SEC, and by state regulatory agencies. The Company has subsidiaries which are RIAs under the Investment Advisers Act of 1940. The Investment Advisers Act of 1940 imposes numerous obligations on RIAs, including fiduciary, record keeping, operational, and disclosure obligations. The subsidiaries, as investment advisers, are also subject to regulation under the federal and state securities laws and the fiduciary laws of certain states. In addition, the Company has a subsidiary which acts as a sub-adviser to mutual funds, which are registered under the Investment Company Act of 1940 and are subject to that Act’s provisions and regulations. The Company’s subsidiaries are also subject to the provisions and regulations of ERISA, to the extent any such entities act as a “fiduciary” under ERISA with respect to certain of its clients. ERISA and the related provisions of the federal tax laws impose a number of duties on persons who are fiduciaries under ERISA, and prohibit certain transactions involving the assets of each ERISA plan which is a client, as well as certain transactions by the fiduciaries and certain other related parties to such plans. Private Banking The Company and the Bank are subject to extensive supervision and regulation by the Federal Reserve, the FDIC, which insures the deposits of the Bank to the maximum extent permitted by law, the Massachusetts Commissioner of Banks, and the California Banking Commission. The federal and state laws and regulations which are applicable to banks regulate, among other things, the scope of their business, their investments, their reserves against deposits, the timing of the availability of deposited funds, and the nature and amount of collateral for certain loans. The laws and regulations governing the Bank generally have been promulgated to foster the safety and soundness of the Bank and protect depositors, and not for the purpose of protecting shareholders of the Company. As of December 31, 2019, quantitative measures established by regulation to ensure capital adequacy required us to maintain minimum ratios of Common Equity Tier 1, Tier 1, and total capital (as defined in the regulations) to risk-weighted assets (as defined in the regulations) and of Tier 1 capital (as defined in the regulations) to average assets (as defined in the regulations). The following table presents the Company’s and the Bank’s amount of regulatory capital and related ratios as of December 31, 2019 and 2018. Also presented are the minimum requirements established by the Federal Reserve and the FDIC as of those dates for the Company and the Bank, respectively, to meet applicable capital requirements and the requirements of the FDIC as of those dates for the Bank to be considered “well capitalized” under the FDIC’s prompt corrective action provisions. The Federal Reserve and the Massachusetts Commissioner of Banks may impose higher capital ratios than those listed below based upon the results of regulatory exams. The Bank was categorized as “well capitalized” under the FDIC’s prompt corrective action provisions as of December 31, 2019 and 2018. Actual For capital adequacy To be well capitalized Basel III Amount Ratio Amount Ratio Amount Ratio (In thousands) As of December 31, 2019 Common Equity Tier 1 risk-based capital Company $ 745,926 11.42 % $ 293,886 4.5 % n/a n/a 7.0 % Boston Private Bank 778,635 11.97 % 292,717 4.5 % $ 422,813 6.5 % 7.0 % Tier 1 risk-based capital Company 846,337 12.96 % 391,848 6.0 % n/a n/a 8.5 % Boston Private Bank 778,635 11.97 % 390,289 6.0 % 520,386 8.0 % 8.5 % Total risk-based capital Company 919,573 14.08 % 522,464 8.0 % n/a n/a 10.5 % Boston Private Bank 851,733 13.09 % 520,386 8.0 % 650,482 10.0 % 10.5 % Tier 1 leverage capital Company 846,337 9.77 % 346,398 4.0 % n/a n/a 4.0 % Boston Private Bank 778,635 9.03 % 344,958 4.0 % 431,198 5.0 % 4.0 % As of December 31, 2018 Common equity tier 1 risk-based capital Company $ 702,728 11.40 % $ 277,275 4.5 % n/a n/a 7.0 % Boston Private Bank 745,051 12.13 % 276,352 4.5 % $ 399,175 6.5 % 7.0 % Tier 1 risk-based capital Company 803,311 13.04 % 369,701 6.0 % n/a n/a 8.5 % Boston Private Bank 745,051 12.13 % 368,469 6.0 % 491,292 8.0 % 8.5 % Total risk-based capital Company 879,927 14.28 % 492,934 8.0 % n/a n/a 10.5 % Boston Private Bank 821,584 13.38 % 491,292 8.0 % 614,115 10.0 % 10.5 % Tier 1 leverage capital Company 803,311 9.54 % 336,648 4.0 % n/a n/a 4.0 % Boston Private Bank 745,051 8.92 % 334,029 4.0 % 417,537 5.0 % 4.0 % ___________________ n/a - not applicable (1) Required capital ratios under the Basel III capital rules with the fully phased-in capital conservation buffer added to the minimum risk-based capital ratios. The fully phased-in ratios are effective for 2019. Bank regulatory authorities restrict the Bank from lending or advancing funds to, or investing in the securities, of the Company. Further, these authorities restrict the amounts available for the payment of dividends by the Bank to the Company. The Company has sponsored the creation of two statutory trusts for the sole purpose of issuing trust preferred securities and investing the proceeds in junior subordinated debentures of the Company. In accordance with ASC 810-10-55, Consolidation - Overall - Implementation Guidance and Illustrations - Variable Interest Entities |
Litigation and Contingencies
Litigation and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation and Contingencies | LITIGATION AND CONTINGENCIESThe Company is involved in routine legal proceedings occurring in the ordinary course of business. In the opinion of management, final disposition of these proceedings will not have a material adverse effect on the Consolidated Balance Sheets, Consolidated Statements of Operations, or Consolidated Statements of Cash Flows of the Company. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION 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 are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605, Revenue Recognition . Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest income considered in-scope of ASC 606 is discussed below. See Part II. Item 8. “Financial Statements and Supplementary Data- Note 1: Basis of Presentation and Summary of Significant Accounting Policies for additional information on the Company's adoption of this standard. 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 contracts. 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 contracts. No performance based incentives are earned on wealth management contracts. Receivables are recorded on the Consolidated Balance Sheets in the Fees receivable line item. Deferred revenues of $6.5 million and $7.0 million as of December 31, 2019 and 2018, respectively, are recorded on the Consolidated Balance Sheets 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 Sheets in the Fees receivable line item. 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 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 Sheets in the Fees receivable line item. 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, credit card 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 relating to foreign exchange fees as they are governed by client disclosure statements and the Bank’s internal policies and procedures. The following table presents the fee income considered in-scope of ASC 606 by contracts with customers: Year Ended December 31, 2019 2018 2017 (In thousands) Fees and other income: Wealth management and trust fees $ 75,757 $ 99,818 $ 97,921 Investment management fees 10,155 21,728 45,515 Other income 2,813 3,910 3,566 Revenue from contracts with customers 88,725 125,456 147,002 Non-interest income within the scope of other GAAP topics 12,822 24,541 6,964 Total non-interest income $ 101,547 $ 149,997 $ 153,966 |
Selected Quarterly Data (Unaudi
Selected Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Selected Quarterly Data (Unaudited) | SELECTED QUARTERLY DATA (UNAUDITED) The following tables present selected quarterly financial data for 2019 and 2018: 2019 (1) Q4 Q3 Q2 Q1 (In thousands, except per share data) Net interest income $ 56,125 $ 56,153 $ 57,460 $ 58,338 Fees and other income 26,793 25,126 24,380 25,248 Total revenues 82,918 81,279 81,840 83,586 Provision/(credit) for loan losses (3,668) 167 1,363 (1,426) Operating expense 58,457 55,537 55,659 60,553 Income before income taxes 28,129 25,575 24,818 24,459 Income tax expense 6,788 5,517 5,369 4,917 Less: Net income attributable to noncontrolling interests 97 96 69 100 Net income attributable to the Company $ 21,244 $ 19,962 $ 19,380 $ 19,442 Net earnings per share attributable to common shareholders: Basic earnings per share (2) $ 0.26 $ 0.24 $ 0.22 $ 0.25 Diluted earnings per share (2) $ 0.26 $ 0.24 $ 0.22 $ 0.25 2018 (1) Q4 Q3 Q2 Q1 (In thousands, except per share data) Net interest income $ 59,997 $ 59,641 $ 57,545 $ 57,383 Fees and other income 45,845 32,314 32,095 39,743 Total revenues 105,842 91,955 89,640 97,126 Provision/(credit) for loan losses 93 (949) 453 (1,795) Operating expense 63,557 68,557 64,384 70,857 Income before income taxes 42,192 24,347 24,803 28,064 Income tax expense 8,651 5,461 17,399 6,026 Net income/(loss) from discontinued operations 306 — (2) 1,698 Less: Net income/(loss) attributable to noncontrolling interests 545 924 968 1,050 Net income attributable to the Company $ 33,302 $ 17,962 $ 6,434 $ 22,686 Net earnings per share attributable to common shareholders: Basic earnings per share (2) $ 0.43 $ 0.20 $ 0.03 $ 0.27 Diluted earnings per share (2) $ 0.42 $ 0.20 $ 0.03 $ 0.27 ___________________ (1) Due to rounding, the sum of the four quarters may not add up to the year to date total. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation 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 owners other than the Company is included in “Net income attributable to noncontrolling interests” in the Consolidated Statements of Operations. Redeemable noncontrolling interests in the Consolidated Balance Sheets reflect the maximum redemption value of agreements with other owners. |
Use of Estimates | Use of EstimatesIn preparing the consolidated financial statements, management is required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to change, in the near term, relate to the determination of the allowance for loan losses, valuation of goodwill and intangible assets, and income tax estimates. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Company’s activities are with clients within the New England, Northern California, and Southern California regions of the country. The Company does not believe it has any significant concentrations in any one industry, geographic location, or with any one client. Part II. Item 8. “Financial Statements and Supplementary Data - Note 4: Investment Securities” highlights the types of securities in which the Company invests, and Part II. Item 8. “Financial Statements and Supplementary Data - Note 5: Loan Portfolio and Credit Quality” describes the concentration of the Private Banking loan data based on the location of the lender. |
Statement of Cash Flows | Statements of Cash Flows For purposes of reporting cash flows, the Company considers cash and due from banks which have original maturities with 90 days or less to be cash equivalents. |
Cash and Due from Banks | Cash and Due from Banks The Bank is required to maintain average reserve balances in an account with the Federal Reserve based upon a percentage of certain deposits. As of December 31, 2019 and 2018, the daily amounts required to be held in the aggregate for the Bank were $3.4 million and $4.3 million, respectively. |
Investment Securities | Investment Securities Available-for-sale investment securities are reported at fair value, with unrealized gains and losses credited or charged, net of the estimated tax effect, to accumulated other comprehensive income/(loss). Held-to-maturity investment securities are those which the Company has the positive intent and ability to hold to maturity and are reported at amortized cost. Equity securities are primarily money market mutual fund securities and are reported at fair value. Premiums and discounts on the investment securities are amortized or accreted into net interest income by the level-yield method. Gains and losses on the sale of the available-for-sale investments are recognized at the trade date on a specific identification basis. Dividend and interest income is recognized when earned and is recorded on the accrual basis. The Company conducts a quarterly review and evaluation of its investment securities to determine if the decline in fair value of a security below its amortized cost is deemed to be other-than-temporary. Other-than-temporary impairment losses are recognized on securities when: (i) the holder has an intention to sell the security; (ii) it is more likely than not that the security will be required to be sold prior to recovery; or (iii) the holder does not expect to recover the entire amortized cost basis of the security. Other-than-temporary losses are reflected in earnings as a charge against gain on sale of investments, net, to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in accumulated other comprehensive income/(loss). The Company has no intention to sell any securities in an unrealized loss position at December 31, 2019, nor is it more likely than not that the Company would be required to sell such securities prior to the recovery of the unrealized losses. As of December 31, 2019, the Company believes that all impairments of investment securities are temporary in nature. No other-than-temporary impairment losses were recognized in the Consolidated Statements of Operations for the years ended December 31, 2019, 2018, and 2017. |
Loans Held for Sale | Loans Held for Sale Loans originated and held for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Fair value is based on commitments on hand from investors or prevailing market prices. Unrealized losses, if any, are recognized through a valuation allowance by charges to income. Loans transferred to the held for sale category from the loan portfolio are transferred at the lower of cost or fair value, usually as determined at the individual loan level. If fair value is less than cost, then a charge for the difference will be made to the allowance for loan losses if the decline in value is due to credit issues. Gains or losses on the sale of loans are recognized at the time of sale on a specific identification basis. Interest income is recognized on an accrual basis when earned. |
Loans | Loans Loans are carried at the principal amount outstanding, net of participations, deferred loan origination fees and costs, charge-offs, and interest payments applied to principal on nonaccrual loans. Loan origination fees, net of related direct incremental loan origination costs, are deferred and recognized into income over the contractual lives of the related loans as an adjustment to the loan yield, using the level-yield method. If a loan is paid off prior to maturity, the unamortized portion of net fees/cost is recognized into interest income. If a loan is sold, the unamortized portion of net fees/cost is recognized at the time of sale as a component of the gain or loss on sale of loans. When the Company analyzes its loan portfolio to determine the adequacy of its allowance for loan losses, it categorizes the loans by portfolio segment and class of financing receivable based on the similarities in risk characteristics for the loans. The Company has determined that its portfolio segments and classes of financing receivables are one and the same, with the exception of the commercial and industrial portfolio segment, which consists of other commercial and industrial loans and commercial tax-exempt loans. The level at which the Company develops and documents its allowance for loan loss methodology is consistent with the grouping of financing receivables based upon initial measurement attributes, risk characteristics, and the Company’s method for monitoring and assessing credit risks. These portfolio segments and classes of financing receivables are: • Commercial and industrial (portfolio segment) ◦ Other commercial and industrial loans (class of financing receivable)- Commercial and industrial loans include working capital and revolving lines of credit, term loans for equipment and fixed assets, and Small Business Administration (“SBA”) loans. ◦ Commercial tax-exempt loans (class of financing receivable)- Commercial tax-exempt loans include loans to not-for-profit private schools, colleges, public charter schools and other non-for-profit organizations. • Commercial real estate (segment and class)- Commercial real estate loans are generally acquisition financing for commercial properties such as office buildings, retail properties, apartment buildings, and industrial/warehouse space. In addition, tax-exempt commercial real estate loans are provided for affordable housing development and rehabilitation. These loans are often supplemented with federal, state, and/or local subsidies. • Construction and land (segment and class)- Construction and land loans include loans for financing of new developments as well as financing for improvements to existing buildings. In addition, tax-exempt construction and land loans are provided for the construction phase of the commercial tax-exempt and commercial real estate tax-exempt loans described above. • Residential mortgage (segment and class)- Residential mortgage loans consist of loans secured by single-family and one- to four-unit properties in excess of the amount eligible for purchase by the Federal National Mortgage Association, which was $484 thousand at December 31, 2019 for the “General” limit and $727 thousand for single-family properties for the “High-Cost” limit, depending on which specific geographic region of the Bank’s primary market areas the loan was originated. While the Bank has no minimum size for mortgage loans, it concentrates its origination activities in the “Jumbo” segment of the market. • Home equity (segment and class)- Home equity loans consist of balances outstanding on second mortgages and home equity lines of credit extended to individual clients. Personal lines of credit are typically for high net worth clients whose assets may not be liquid due to investments or closely held stock. The amount of home equity loans typically depends on client demand. • Consumer and other (segment and class)- Consumer and other loans consist of balances outstanding on consumer loans including personal lines of credit, and loans arising from overdraft protection extended to individual and business clients. Personal lines of credit are typically for high net worth clients whose assets may not be liquid due to investments or closely held stock. The amount of consumer and other loans typically depends on client demand. The past due status of a loan is determined in accordance with its contractual repayment terms. Loans are reported past due when one scheduled payment is due and unpaid for 30 days or more. The Bank’s policy is to discontinue the accrual of interest on a loan when the collectability of principal or interest is in doubt. 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. Impaired loans are usually commercial loans or construction and land loans, for which it is probable that the Company will not collect all amounts due according to the contractual terms of the loan agreement, and all loans restructured in a troubled debt restructuring. Accrual of interest income is discontinued and all interest previously accrued but not collected is reversed against current period interest income when a loan is initially classified as nonaccrual. Generally, interest received on nonaccrual loans is applied against principal or, on a limited basis, reported as interest income on a cash basis, when according to management’s judgment, the collectability of principal is reasonably assured. The Bank’s general policy for returning a loan to accrual status requires the loan to be brought current, for the client to show a history of making timely payments (generally six consecutive months), and when the financial position of the borrower and other relevant factors indicate there is no longer doubt as to the collectability of the loan. The Bank’s loan commitments are generally short-term in nature with terms that are primarily variable. Given the limited interest rate exposure posed by the commitments, the Bank estimates the fair value of these commitments to be immaterial. |
Credit Quality Indicators | 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 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. |
Restructured Loans | Restructured Loans When the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to a troubled borrower that it would not otherwise consider, the loan is classified as a restructured loan pursuant to Accounting Standards Codification (“ASC”) 470, Debt . The concession either stems from an agreement between the creditor and the Bank or is imposed by law or a court. The concessions may include: • Deferral of principal and/or interest payments • Lower interest rate as compared to a new loan with comparable risk and terms • Extension of the maturity date • Reduction in the principal balance owed All loans whose terms have been modified in a troubled debt restructuring, including commercial, residential, and consumer, are evaluated for impairment under ASC 310, Receivables . Generally, a nonaccrual loan that is restructured remains on nonaccrual status for a period of at least six months to demonstrate that the borrower can meet the restructured terms. However, performance prior to the restructuring or significant events that coincide with the restructuring are considered when assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of the restructuring or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains classified as a nonaccrual loan. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses (“allowance”) is an estimate of the inherent risk of loss in the loan portfolio as of the dates indicated on the Consolidated Balance Sheets. 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 Company’s allowance is accounted for in accordance with guidance issued by various regulatory agencies, including: the Federal Financial Institutions Examination Council Policy Statement on the Allowance for Loan and Lease Losses (December 2006); Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin No. 102, Selected Loan Loss Methodology and Documentation Issues ; ASC 310, Receivables ; and ASC 450, Contingencies . The allowance consists of three primary components: general reserves on pass graded loans, allocated reserves on non-impaired special mention and substandard loans, and specific reserves on impaired loans. The calculation of the allowance involves a high degree of management judgment and estimates designed to reflect the inherent risk of loss in the loan portfolio at the measurement date. General reserves are calculated for each loan pool consisting of pass graded loans segregated by portfolio segment by applying estimated net loss percentages based upon the Bank’s actual historical net charge-offs during the historical observation period and loss emergence period. In addition, consideration of qualitative factors are applied to arrive at a total loss factor for each portfolio segment. The rationale for qualitative adjustments is to more accurately reflect the current inherent risk of loss in the respective portfolio segments than would be determined through the sole consideration of the Bank’s actual historical net charge-off rates. The numerical factors assigned to each qualitative factor are based upon observable data, if applicable, as well as management’s analysis and judgment. The qualitative factors considered by the Company include: • Volume and severity of past due, nonaccrual, and adversely graded loans, • Volume and terms of loans, • Concentrations of credit, • Management’s experience, as well as loan underwriting and loan review policy and procedures, • Economic and business conditions impacting the Bank’s loan portfolio, as well as consideration of collateral values, and • External factors, including consideration of loss factor trends, competition, and legal and regulatory requirements. The Bank makes a determination of the applicable loss rate for these factors based on relevant local market conditions, credit quality, and portfolio mix. Each quarter, management reviews the loss factors to determine if there have been any changes in its loan portfolio, market conditions, or other risk indicators which would result in a change to the current loss factor. Allocated reserves on non-impaired special mention and substandard loans reflect management’s assessment of increased risk of losses associated with these types of adversely graded loans. An allocated reserve is assigned to these pools of loans based upon management’s consideration of the credit attributes of individual loans within each pool of loans, including consideration of loan to value ratios, past due status, strength and willingness of the guarantors, and other relevant attributes as well as the qualitative factors considered for the general reserve, as discussed above. These considerations are determined separately for each type of portfolio segment. The allocated reserves are a multiple of the general reserve for each respective portfolio segments, with a greater multiple for loans with increased risk ( i.e. special mention loans versus substandard loans). A loan is considered impaired in accordance with ASC 310 when, based upon current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impairment is measured based on the fair value of the loan, expected future cash flows discounted at the loan’s effective interest rate, or as a practical expedient, impairment may be determined based upon the observable market price of the loan, or the fair value of the collateral, less estimated costs to sell, if the loan is “collateral dependent.” A loan is collateral dependent if repayment of the loan is expected to be provided solely by the underlying collateral or sale of the underlying collateral. For collateral dependent loans, appraisals are generally used to determine the fair value. When a collateral dependent loan becomes impaired, an updated appraisal of the collateral is obtained, if appropriate. Appraised values are generally discounted for factors such as the Bank’s intention to liquidate the property quickly in a foreclosure sale or the date when the appraisal was performed if the Bank believes that collateral values have declined since the date the appraisal was done. The Bank may use a broker opinion of value in addition to an appraisal to validate the appraised value. In certain instances, the Bank may consider broker opinions of value as well as other qualitative factors while an appraisal is being prepared. If the loan is deemed to be collateral dependent, generally the difference between the book balance (client balance less any prior charge-offs or client interest payments applied to principal) and the fair value of the collateral less costs to sell is taken as a partial charge-off through the allowance for loan losses in the current period. If the loan is not determined to be collateral dependent, then a specific allocation to the general reserve is established for the difference between the book balance of the loan and the expected future cash flows discounted at the loan’s effective interest rate. Charge-offs for loans not considered to be collateral dependent are made when it is determined a loss has been incurred. Impaired loans are removed from the general loan pools. There may be instances where the loan is considered impaired although based on the fair value of underlying collateral or the discounted expected future cash flows there is no impairment to be recognized. In addition, all loans which are classified as troubled debt restructurings (“TDRs”) are considered impaired. In addition to the three primary components of the allowance for loan losses discussed above (general reserves, allocated reserves on non-impaired special mention and substandard loans, and the specific reserves on impaired loans), the Bank may also maintain an insignificant amount of additional allowance for loan losses (the unallocated allowance for loan losses). The unallocated reserve reflects the fact that the allowance for loan losses is an estimate and contains a certain amount of imprecision risk. It represents risks identified by Management that are not already captured in the qualitative factors discussed above. The unallocated allowance for loan losses is not considered significant by the Company and will remain at zero unless additional risk is identified. While this evaluation process utilizes historical and other objective information, the classification of loans and the establishment of the allowance for loan losses rely to a great extent on the judgment and experience of management. While management evaluates currently available information in establishing the allowance for loan losses, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the evaluations. In addition, various regulatory agencies, as an integral part of their examination process, periodically review a financial institution’s allowance for loan losses as well as loan grades/classifications. Such agencies may require the financial institution to recognize additions to the allowance for loan losses or increases to adversely graded loans based on their judgments about information available to them at the time of their examination. |
Reserve for Unfunded Loan Commitments | Reserve for Unfunded Loan CommitmentsThe Company maintains a reserve for unfunded loan commitments for such items as unused portion of lines of credit and unadvanced construction loans. The reserve is maintained at a level that reflects the risk in these various commitments. Management determines the reserve percentages on a quarterly basis based on a percentage of the current historical loss rates for these portfolios. Once a loan commitment is funded, the reserve for unfunded loan commitment is reversed and a corresponding allowance for loan loss reserve is established. This unfunded loan commitment reserve is included in other liabilities in the Consolidated Balance Sheets. Net adjustments to the reserve for unfunded commitments are included in other operating expense in the Consolidated Statements of Operations. |
Other Real Estate Owned (OREO) | OREOOREO is comprised of property acquired through foreclosure proceedings or acceptance of a deed-in-lieu of foreclosure in partial or total satisfaction of certain loans. Properties are recorded at the lower of the recorded investment in the loan at the time of acquisition or the fair value, as established by a current appraisal, comparable sales, and other estimates of value obtained principally from independent sources, less estimated costs to sell. Any decline in fair value compared to the carrying value of a property at the time of acquisition is charged against the allowance for loan losses. Any subsequent valuation adjustments to reflect declines in current fair value, as well as gains or losses on disposition are reported in gain/(loss) on OREO, net in the Consolidated Statements of Operations. Expenses incurred for holding or maintaining OREO properties such as real estate taxes, utilities, and insurance are charged as incurred to other operating expenses in the Consolidated Statements of Operations. Rental income earned, although generally minimal, is offset against other Operating expenses. |
Premises and Equipment | Premises and Equipment Premises and equipment consists of leasehold improvements, furniture, fixtures, office equipment, computer equipment, software, and buildings. Premises and equipment are carried at cost, less accumulated depreciation. Also included in premises and equipment is technology initiatives in process. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. The estimated useful life for leasehold improvements is 10 years or the remaining term of the lease, if shorter. The estimated useful life for buildings is 40 years. The estimated useful life for furniture and fixtures is 6 |
Valuation of Goodwill/Intangible Assets and Analysis for Impairment | Valuation of Goodwill/Intangible Assets and Analysis for Impairment The Company allocates the cost of an acquired entity to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Other intangible assets identified in acquisitions generally consist of advisory contracts. The value attributed to advisory contracts is based on the time period over which they are expected to generate economic benefits. The advisory contracts are generally amortized over 8-15 years, depending on the contract. The excess of the purchase price for acquisitions over the fair value of the net assets acquired, including other intangible assets, is recorded as goodwill. Goodwill is not amortized but is tested for impairment at the reporting unit level, defined as the affiliate level, at least annually in the fourth quarter or more frequently when events or circumstances occur that indicate that it is more likely than not that an impairment has occurred, based on the guidance in ASC 350, Intangibles -Goodwill and Other (“ASC 350”), as updated by ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). Goodwill impairment exists when a reporting unit’s carrying value of goodwill exceeds its implied fair value. In accordance with ASC 350, intangible assets with an indefinite useful economic life are not amortized, but are subject to impairment testing at the reporting unit on an annual basis, or when events or changes in circumstances indicate that the carrying amounts are impaired. Indefinite-lived intangible assets are tested for impairment by comparing the net carrying value of the asset or asset group to the fair value. Intangible asset impairment exists when the carrying value exceeds its implied fair value. An entity may assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount, including goodwill (“Step 0”). In evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, an entity assesses relevant events and circumstances, such as the following: • Macroeconomic conditions, such as deterioration in general economic conditions, limitations on accessing capital, or other developments in equity and credit markets. • Industry and market considerations, such as a deterioration in the environment in which an entity operates, an increased competitive environment, a decline in market-dependent multiples or metrics (considered in both absolute terms and relative to peers), a change in the market for an entity’s products or services, or a regulatory or political development. • Overall financial performance, such as negative or declining asset flows or cash flows, or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods. • Other relevant entity-specific events, such as changes in management, key personnel, strategy, or customers; contemplation of bankruptcy; or litigation. • Events affecting a reporting unit, such as a change in the composition or carrying amount of its net assets; a more-likely-than-not expectation of selling or disposing all, or a portion, of a reporting unit; the testing for recoverability of a significant asset group within a reporting unit; or recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a component of a reporting unit. If, after assessing the totality of events or circumstances such as those described in the preceding paragraph, an entity determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative goodwill impairment test, as described below, is unnecessary. Goodwill is tested for impairment by estimating the fair value of a reporting unit. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions, and selecting an appropriate control premium. Both the income and market approaches to determine fair value of the reporting units are typically incorporated. The income approach is primarily based on discounted cash flows derived from assumptions of income statement activity. For the market approach, earnings before interest, taxes, depreciation and amortization (“EBITDA”) and revenue multiples of comparable companies are selected and applied to the financial services reporting unit’s applicable metrics.. Generally a valuation consultant will be engaged to assist with the valuation. Quantitative impairment testing requires a comparison of each reporting unit’s fair value to carrying value to identify potential impairment. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, an impairment loss is recognized. In adopting ASU 2017-04, the Company measures that loss as an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Additionally, the Company considers the income tax effect from any tax deductible goodwill on the carrying amount of the reporting unit, if applicable, when measuring the goodwill impairment loss. The fair value of the reporting unit is determined using generally accepted approaches to valuation commonly referred to as the income approach, market approach, and cost approach. Within each category, a variety of methodologies exist to assist in the estimation of fair value. The Wealth Management and Trust segment is the only reportable segment that has goodwill. The fair value of the reporting unit is compared to market capitalization as an assessment of the appropriateness of the fair value measurement. A control premium analysis is performed to determine whether the implied control premium was within range of overall control premiums observed in the market place. |
Income Tax Estimates | Income Tax Estimates The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”). The deferred tax assets and/or liabilities are determined by multiplying the differences between the financial reporting and tax reporting basis for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled. The effect on deferred taxes for a change in tax rates is recognized in income tax expense/(benefit) attributable to continuing operations in the period that includes the enactment date. Valuation allowances on deferred tax assets are estimated based on our assessment of the realizability of such amounts. Significant management judgment is required in determining the provision for income taxes and, in particular, any valuation allowance recorded against our deferred tax assets. In accordance with ASC 740, deferred tax assets are to be reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of the tax benefit depends upon the existence of sufficient taxable income of the appropriate character within the carry-forward periods. Management considered the following items in evaluating the need for a valuation allowance: ▪ The Company had cumulative pre-tax income, as adjusted for permanent book-to-tax differences, during the preceding three year period. ▪ Deferred tax assets are expected to reverse in periods when there will be taxable income. ▪ The Company projects sufficient future taxable income to be generated by operations during the available carry-forward period. ▪ Certain tax planning strategies are available, such as reducing investments in tax-exempt securities. ▪ The Company has not had any operating loss or tax credit carryovers expiring unused in recent years. The Company believes that it is more likely than not that the net deferred tax asset as of December 31, 2019, will be realized based primarily upon the ability to generate future taxable income. The Company does not have any capital losses in excess of capital gains as of December 31, 2019. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company records derivatives on the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are designated as fair value hedges. Derivatives used to hedge exposure to variability in expected future cash flows, or other types of forecasted transactions, are designated as cash flow hedges. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income/(loss) (a component of shareholders’ equity), net of tax, and subsequently reclassified to earnings when the hedged transaction affects earnings, and the ineffective portion, if any, of changes in the fair value of the derivative is recognized directly in earnings. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. On January 1, 2018, the Company early adopted ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities , under the modified retrospective transition. Under the new ASU, the concept of ineffectiveness is no longer used. In accordance with the guidance, the Company will recognize all reclassifications out of accumulated other comprehensive income/(loss) (other than those related to a hedge transaction probable of not occurring) in earnings. For derivatives designated as fair value hedges, changes in the fair value of the derivative are recognized in earnings together with the changes in the fair value of the related hedged item. Therefore, the net amount, if any, representing hedge ineffectiveness, is reflected in earnings. |
Wealth Management and Trust Fees and Investment Management | Wealth Management and Trust Fees and Investment Management The Company generates fee income from providing wealth management and investment management services and from providing trust services to its clients at the Bank. Investment management fees are generally based upon the value of assets under management and are billed monthly, quarterly, or annually. Asset-based advisory fees are recognized as services are rendered and are based upon a percentage of the fair value of client assets managed. Certain wealth management fees are not asset-based and are negotiated individually with clients. Any fees collected in advance are deferred and recognized as income over the period earned. Performance-based advisory fees are generally assessed as a percentage of the investment performance realized on a client’s account, generally over an annual period, and are not recognized until any contingencies in the contract that could require the performance fee to be reduced have been eliminated. Assets under management (“AUM”) at the Company’s consolidated subsidiaries are not included in the consolidated financial statements since they are held in a fiduciary or agency capacity and are not assets of the Company. |
Stock-Based Incentive Plans | Stock-Based Incentive Plans The fair value of restricted stock and restricted units, both time based and performance based, is generally equal to the closing price of the Company’s stock on the date of issuance. The fair value of time based, performance based, or market based stock options is calculated using a pricing model such as Black-Scholes. At December 31, 2019, the Company has three stock-based incentive compensation plans. These plans encourage and enable the officers, employees, and non-employee directors of the Company to acquire an interest in the Company. The Company accounts for share-based awards in accordance with ASC 718, Compensation – Stock Compensation . Costs resulting from the issuance of such share-based payment awards are required to be recognized in the financial statements based on the grant date fair value of the award. Stock-based compensation expense is recognized over the requisite service period, which is generally the vesting period. The vesting period for time based and performance based stock, units, and options is generally cliff vesting with terms from 1 to 5 years or graded. Market based option vesting is based on the specific terms of the vesting criteria and the expectation of when the performance criteria could be attained as of the time of issuance. |
Earnings Per Share (EPS) | Earnings Per Share (“EPS”) Basic EPS is computed by dividing net income/(loss) attributable to common shareholders by the weighted average number of common shares outstanding during the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock warrants, non-participating performance-based restricted stock, certain time-based restricted stock, and stock options, among others) were exercised or converted into additional common shares that would then share in the earnings of the entity. Diluted EPS is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the year, plus an incremental number of common-equivalent shares computed using the treasury stock method. Dilutive potential common shares could consist of: stock options, performance-based restricted stock, time-based restricted stock not participating in common stock dividends, warrants or other dilutive securities, and conversion of the convertible trust preferred securities. Additionally, when dilutive, interest expense (net of tax) related to the convertible trust preferred securities is added back to net income attributable to common shareholders. The calculation of diluted EPS excludes the potential dilution of common shares and the inclusion of any related expenses if the effect is antidilutive. For the calculation of the Company’s EPS, see Part II. Item 8. “Financial Statements and Supplementary Data - Note 16: Earnings Per Share.” |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements The Company has recently adopted the following Accounting Standards Updates (“ASUs”) issued by the FASB. 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 II. Item 8. “Financial Statements and Supplementary Data - Note 26: 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 to measure 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 II. Item 8. “Financial Statements and Supplementary Data - Note 21: 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 Consolidated Balance Sheets 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 Consolidated Statements of Operations. 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. On adoption, the Company recognized $124.1 million of lease liabilities and $108.5 million of ROU assets. 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. 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, lowered the federal corporate tax rate from 35% to 21% effective January 1, 2018. This update required 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 eliminate the stranded tax effects associated with the change in the federal corporate income tax rate related to the Tax Act and 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 Statements of Changes in Shareholders’ Equity. Accounting Pronouncements Not Yet Adopted The following ASUs have been issued by the FASB, but were not yet adopted as of December 31, 2019. 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. The Company adopted this update on January 1, 2020 utilizing a modified retrospective approach, and the adoption will result in updated and expanded disclosures. Management assembled a project team for the implementation of this standard. The project team selected a third-party software service provider and has implemented a probability of default/Loss Given Default model utilizing both peer data and internal data to estimate the expected losses over the remaining life of the portfolio. Further, the team identified the necessary data requirements and is currently finalizing the testing of material data inputs and performing a model validation assessment. 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 and have also determined that both the forecast and reversion method are to be used. The Company is in the final stages of implementing and documenting the accounting, reporting and governance processes to comply with this new guidance. 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 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 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. In November 2019, the FASB issued also ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 942)—Effective Dates (“ASU 2019-10”) and ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (“ASU 2019-11”). The 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. ASU 2019-10 has no impact to the Company, while ASU 2019-11 clarifies the guidance in ASU 2016-13, Topic 326. These ASUs will be effective for fiscal years beginning after December 15, 2019. The Company is assessing the potential disclosure impact for these amendments and will adopt on January 1, 2020 in conjunction with ASU 2016-13. |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Activity | The following table presents a summary of the restructuring activity for the years ended December 31, 2019, 2018, and 2017. Severance Charges Other Associated Costs Total (In thousands) Accrued charges at December 31, 2016 $ 1,977 $ — $ 1,977 Costs incurred — — — Costs paid (1,640) — (1,640) Accrued charges at December 31, 2017 $ 337 $ — $ 337 Costs incurred 5,457 2,371 7,828 Costs paid (1,898) (1,582) (3,480) Accrued charges at December 31, 2018 $ 3,896 $ 789 $ 4,685 Costs incurred 1,646 — 1,646 Costs paid (5,016) — (5,016) Accrued charges at December 31, 2019 $ 526 $ 789 $ 1,315 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Debt Securities Available for sale | The following tables present a summary of investment securities: Amortized Unrealized Fair Gains Losses (In thousands) At December 31, 2019 Available-for-sale securities at fair value: U.S. government and agencies $ 19,955 $ 42 $ (57) $ 19,940 Government-sponsored entities 154,963 1,292 — 156,255 Municipal bonds 312,977 12,551 (73) 325,455 Mortgage-backed securities (1) 479,005 1,117 (3,488) 476,634 Total $ 966,900 $ 15,002 $ (3,618) $ 978,284 Held-to-maturity securities at amortized cost: Mortgage-backed securities (1) $ 48,212 $ 53 $ (316) $ 47,949 Total $ 48,212 $ 53 $ (316) $ 47,949 Equity securities at fair value: Money market mutual funds (2) $ 18,810 $ — $ — $ 18,810 Total $ 18,810 $ — $ — $ 18,810 Amortized Unrealized Fair Gains Losses (In thousands) 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 tables present a summary of investment securities: Amortized Unrealized Fair Gains Losses (In thousands) At December 31, 2019 Available-for-sale securities at fair value: U.S. government and agencies $ 19,955 $ 42 $ (57) $ 19,940 Government-sponsored entities 154,963 1,292 — 156,255 Municipal bonds 312,977 12,551 (73) 325,455 Mortgage-backed securities (1) 479,005 1,117 (3,488) 476,634 Total $ 966,900 $ 15,002 $ (3,618) $ 978,284 Held-to-maturity securities at amortized cost: Mortgage-backed securities (1) $ 48,212 $ 53 $ (316) $ 47,949 Total $ 48,212 $ 53 $ (316) $ 47,949 Equity securities at fair value: Money market mutual funds (2) $ 18,810 $ — $ — $ 18,810 Total $ 18,810 $ — $ — $ 18,810 Amortized Unrealized Fair Gains Losses (In thousands) 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 tables present the maturities of available-for-sale investment securities, based on contractual maturity, and the weighted average yields of such securities as of December 31, 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 curtailments are expected to have shorter lives. U.S. government and agencies (1) Government-sponsored entities (1) Amortized Fair Weighted Amortized Fair Weighted (In thousands) Within one year $ — $ — — % $ 11,498 $ 11,527 1.92 % After one, but within five years 9,999 10,041 1.75 % 128,356 129,501 1.97 % After five, but within ten years 9,956 9,899 1.70 % 15,109 15,227 2.00 % Greater than ten years — — — % — — — % Total $ 19,955 $ 19,940 1.73 % $ 154,963 $ 156,255 1.97 % Municipal bonds (1) Mortgage-backed securities (2) Amortized Fair Weighted Amortized Fair Weighted (In thousands) Within one year $ 18,164 $ 18,246 1.76 % $ 118 $ 117 1.91 % After one, but within five years 27,531 27,874 2.14 % 139,216 139,311 2.15 % After five, but within ten years 59,884 62,524 2.56 % 148,127 147,278 2.15 % Greater than ten years 207,398 216,811 2.66 % 191,544 189,928 2.21 % Total $ 312,977 $ 325,455 2.54 % $ 479,005 $ 476,634 2.17 % The following table presents the maturities of held-to-maturity investment securities, based on contractual maturity, and the weighted average yields of such securities as of December 31, 2019: Mortgage-backed securities (2) Amortized Fair Weighted (In thousands) Within one year $ — $ — — % After one, but within five years — — — % After five, but within ten years 39,389 39,173 2.22 % Greater than ten years 8,823 8,776 2.48 % Total $ 48,212 $ 47,949 2.27 % _________________ (1) Certain securities are callable before their final maturity. (2) Mortgage-backed securities are shown based on their final (contractual) maturity, but, due to prepayments, they are expected to have shorter lives. The weighted average remaining maturity at December 31, 2019 was 7.7 years for available-for-sale investment securities, with $239.0 million of available-for-sale investment securities callable before maturity. The weighted average remaining maturity at December 31, 2018 was 7.7 years for available-for-sale investment securities, with $217.0 million of available-for-sale investment securities callable before maturity. The weighted average remaining maturity for held-to-maturity investment securities was 10.0 years and 11.0 years at December 31, 2019 and December 31, 2018, respectively. The following table presents the maturities of equity securities, based on contractual maturity, and the weighted average yields of such securities as of December 31, 2019: Money market mutual funds Amortized Fair Weighted (In thousands) Within one year $ 18,810 $ 18,810 2.07 % After one, but within five years — — — % After five, but within ten years — — — % Greater than ten years — — — % Total $ 18,810 $ 18,810 2.07 % |
Realized Gain (Loss) on Investments | The following table presents the proceeds from sales, gross realized gains and gross realized losses for available-for-sale investment securities that were sold or called during the following periods as well as changes in 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. Year Ended December 31, 2019 2018 2017 (In thousands) Proceeds from sales (1) $ — $ 53,412 $ 81,221 Realized gains — 7 519 Realized losses — (597) (143) Change in unrealized gain/(loss) on equity securities reflected in the Consolidated Statements of Operations (2) — (23) n/a |
Schedule of Unrealized Loss on Investments | The following tables present information regarding securities at December 31, 2019 and 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 Unrealized Fair Unrealized Fair Unrealized Number of (In thousands, except number of securities) December 31, 2019 Available-for-sale securities U.S. government and agencies $ 9,899 $ (57) $ — $ — $ 9,899 $ (57) 1 Government-sponsored entities 1,725 — — — 1,725 — 1 Municipal bonds 9,149 (73) — — 9,149 (73) 4 Mortgage-backed securities (1) 140,723 (1,016) 187,043 (2,472) 327,766 (3,488) 85 Total $ 161,496 $ (1,146) $ 187,043 $ (2,472) $ 348,539 $ (3,618) 91 Held-to-maturity securities Mortgage-backed securities (1) $ 10,328 $ (11) $ 30,451 $ (305) $ 40,779 $ (316) 14 Total $ 10,328 $ (11) $ 30,451 $ (305) $ 40,779 $ (316) 14 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized Number 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. |
Concentration Risk Disclosure | The following table presents the concentration of securities with any one issuer that exceeds 10% of shareholders’ equity as of December 31, 2019: Amortized cost Fair value (In thousands) Federal Home Loan Mortgage Corporation $ 296,049 $ 295,434 Federal Home Loan Bank 89,167 90,111 Federal National Mortgage Association 199,064 198,128 Total $ 584,280 $ 583,673 |
Loan Portfolio and Credit Quali
Loan Portfolio and Credit Quality (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of the Loan Portfolio | The following table presents a summary of the loan portfolio based on the portfolio segment as of the dates indicated: December 31, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 694,034 $ 623,037 Commercial tax-exempt 447,927 451,671 Total commercial and industrial 1,141,961 1,074,708 Commercial real estate 2,551,274 2,395,692 Construction and land 225,983 240,306 Residential 2,839,155 2,948,973 Home equity 83,657 90,421 Consumer and other 134,674 143,058 Total $ 6,976,704 $ 6,893,158 |
Schedule of Nonaccrual Loans Receivable | The following table presents nonaccrual loans receivable by class of receivable as of the dates indicated: December 31, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 582 $ 2,554 Commercial tax-exempt — — Total commercial and industrial 582 2,554 Commercial real estate — 546 Construction and land — — Residential 13,993 7,914 Home equity 1,525 3,031 Consumer and other 3 12 Total $ 16,103 $ 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: December 31, 2019 Accruing Past Due Nonaccrual Loans 30-59 60-89 Total Current 30-89 90 Days Total Current Total (In thousands) Commercial and industrial $ 828 $ — $ 828 $ — $ 241 $ 341 $ 582 $ 692,624 $ 694,034 Commercial tax-exempt — — — — — — — 447,927 447,927 Commercial real estate 1,420 — 1,420 — — — — 2,549,854 2,551,274 Construction and land — — — — — — — 225,983 225,983 Residential 19,133 1,038 20,171 9,593 759 3,641 13,993 2,804,991 2,839,155 Home equity 369 — 369 220 148 1,157 1,525 81,763 83,657 Consumer and other 1,008 2,149 3,157 1 — 2 3 131,514 134,674 Total $ 22,758 $ 3,187 $ 25,945 $ 9,814 $ 1,148 $ 5,141 $ 16,103 $ 6,934,656 $ 6,976,704 December 31, 2018 Accruing Past Due Nonaccrual Loans 30-59 60-89 Total Current 30-89 90 Days Total Current Total (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 |
Schedule of Loan Portfolio's Credit Risk | The following tables present the loan portfolio’s credit risk profile by internally assigned grade and class of receivable as of the dates indicated: December 31, 2019 By Loan Grade or Nonaccrual Status Pass Special Accruing Nonaccrual Total (In thousands) Commercial and industrial $ 656,364 $ 12,101 $ 24,987 $ 582 $ 694,034 Commercial tax-exempt 436,721 7,154 4,052 — 447,927 Commercial real estate 2,495,702 32,014 23,558 — 2,551,274 Construction and land 225,526 457 — — 225,983 Residential 2,820,909 — 4,253 13,993 2,839,155 Home equity 81,060 — 1,072 1,525 83,657 Consumer and other 134,371 300 — 3 134,674 Total $ 6,850,653 $ 52,026 $ 57,922 $ 16,103 $ 6,976,704 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 year ended December 31, 2019 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 $ 470 $ 553 n/a $ 1,062 $ 268 Commercial tax-exempt — — n/a — — Commercial real estate 733 733 n/a 155 262 Construction and land — — n/a — — Residential 15,362 15,622 n/a 13,700 636 Home equity 1,557 2,119 n/a 2,095 35 Consumer and other — — n/a — — Subtotal $ 18,122 $ 19,027 n/a $ 17,012 $ 1,201 With an allowance recorded: Commercial and industrial $ 254 $ 254 $ 146 $ 736 $ 33 Commercial tax-exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential 538 538 67 1,130 23 Home equity 273 273 22 545 4 Consumer and other — — — — — Subtotal $ 1,065 $ 1,065 $ 235 $ 2,411 $ 60 Total: Commercial and industrial $ 724 $ 807 $ 146 $ 1,798 $ 301 Commercial tax-exempt — — — — — Commercial real estate 733 733 — 155 262 Construction and land — — — — — Residential 15,900 16,160 67 14,830 659 Home equity 1,830 2,392 22 2,640 39 Consumer and other — — — — — Total $ 19,187 $ 20,092 $ 235 $ 19,423 $ 1,261 ___________________ (1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, 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. The following table presents, by class of receivable, the average recorded investment balance of impaired loans and interest income recognized on impaired loans: Year Ended December 31, 2019 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) Commercial and industrial $ 1,798 $ 301 $ 2,245 $ 84 $ 1,750 $ 54 Commercial tax-exempt — — — — 1,001 80 Commercial real estate 155 262 6,089 2,249 10,078 1,868 Construction and land — — 50 16 172 — Residential 14,830 659 10,423 430 11,502 449 Home equity 2,640 39 2,000 35 449 1 Consumer and other — — 10 3 10 — Total $ 19,423 $ 1,261 $ 20,817 $ 2,817 $ 24,962 $ 2,452 |
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 year ended December 31, 2019 Restructured Year to Date TDRs that defaulted that # of Loans Pre-modification Post-modification # of Loans Post-modification (In thousands, except number of loans) Commercial and industrial 2 $ 449 $ 449 1 $ 270 Commercial tax-exempt — — — — — Commercial real estate 1 736 736 — — Construction and land — — — — — Residential 5 6,801 6,845 — — Home equity 2 525 534 — — Consumer and other — — — — — Total 10 $ 8,511 $ 8,564 1 $ 270 As of and for the year ended December 31, 2019 Extension of Term Temporary Rate Reduction Payment Deferral Combination of Concessions (1) Total Concessions # of Loans Post- # of Loans Post- # of Loans Post- # of Loans Post- # of Loans Post- (In thousands, except number of loans) Commercial and industrial 2 $ 449 — $ — — $ — — $ — 2 $ 449 Commercial tax-exempt — — — — — — — — — — Commercial real estate 1 736 — — — — — — 1 736 Construction and Land — — — — — — — — — — Residential — — 2 3,227 3 3,618 — — 5 6,845 Home Equity — — 1 283 1 251 — — 2 534 Consumer and other — — — — — — — — — — Total 3 $ 1,185 3 $ 3,510 4 $ 3,869 — $ — 10 $ 8,564 ____________________ (1) Combination of concessions includes loans that have had more than one modification, including extension of term, temporary reduction of interest rate, and/or payment deferral. As of and for the year ended December 31, 2018 Restructured Year to Date TDRs that defaulted that # of Loans Pre-modification Post-modification # of Loans Post-modification (In thousands, except number of loans) Commercial and industrial 3 $ 1,249 $ 1,249 1 $ 150 Commercial tax-exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential 2 2,175 2,210 — — Home equity — — — — — Consumer and other — — — — — Total 5 $ 3,424 $ 3,459 1 $ 150 As of and for the year ended December 31, 2018 Extension of Term Temporary Rate Reduction Payment Deferral Combination of Concessions (1) Total Concessions # of Loans Post- # of Loans Post- # of Loans Post- # of Loans Post- # of Loans Post- (In thousands, except number of loans) Commercial and industrial 2 $ 250 — $ — — $ — 1 $ 999 3 $ 1,249 Commercial tax-exempt — — — — — — — — — $ — Commercial real estate — — — — — — — — — $ — Construction and Land — — — — — — — — — $ — Residential — — 2 2,210 — — — — 2 $ 2,210 Home Equity — — — — — — — — — $ — Consumer and other — — — — — — — — — $ — Total 2 $ 250 2 $ 2,210 — $ — 1 $ 999 5 $ 3,459 ___________________ (1) Combination of concessions includes loans that have had more than one modification, including extension of term, temporary reduction of interest rate, and/or payment deferral. |
Loan Participation Amounts by Loan Type | 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: December 31, 2019 December 31, 2018 (In thousands) Commercial and industrial $ 14,533 $ 8,024 Commercial tax-exempt 18,101 19,105 Commercial real estate 121,929 60,688 Construction and land 75,451 39,966 Total loan participations serviced for others $ 230,014 $ 127,783 Residential $ 204,696 $ 33,168 Total loans serviced for others $ 204,696 $ 33,168 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 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 year ended December 31, 2019 2018 2017 (In thousands) Allowance for loan losses, beginning of year: Commercial and industrial $ 15,912 $ 11,735 $ 12,751 Commercial real estate 41,934 46,820 50,412 Construction and land 6,022 4,949 3,039 Residential 10,026 9,773 10,449 Home equity 1,284 835 1,035 Consumer and other 134 630 391 Total allowance for loan losses, beginning of year $ 75,312 $ 74,742 $ 78,077 Loans charged-off: Commercial and industrial $ (645) $ (709) $ (393) Commercial real estate — (135) — Construction and land — — — Residential — (16) (58) Home equity (562) — — Consumer and other (22) (39) (412) Total charge-offs $ (1,229) $ (899) $ (863) Recoveries on loans previously charged-off: Commercial and industrial $ 891 $ 680 $ 472 Commercial real estate 429 2,389 4,621 Construction and land — — 25 Residential 100 429 47 Home equity 10 1 — Consumer and other 33 168 32 Total recoveries $ 1,463 $ 3,667 $ 5,197 Provision/(credit) for loan losses: Commercial and industrial $ (94) $ 4,206 $ (1,095) Commercial real estate (1,598) (7,140) (8,213) Construction and land (903) 1,073 1,885 Residential (1,269) (160) (665) Home equity 46 448 (200) Consumer and other 254 (625) 619 Total provision/(credit) for loan losses $ (3,564) $ (2,198) $ (7,669) Allowance for loan losses, end of year: Commercial and industrial $ 16,064 $ 15,912 $ 11,735 Commercial real estate 40,765 41,934 46,820 Construction and land 5,119 6,022 4,949 Residential 8,857 10,026 9,773 Home equity 778 1,284 835 Consumer and other 399 134 630 Total allowance for loan losses, end of year $ 71,982 $ 75,312 $ 74,742 |
Allowance By Method of Impairment Analysis | The following tables present the Company’s allowance for loan losses and loan portfolio at December 31, 2019 and 2018 by portfolio segment, disaggregated by method of impairment analysis. The Company had no loans acquired with deteriorated credit quality at December 31, 2019 or 2018. December 31, 2019 Individually Evaluated Collectively Evaluated Total Recorded Allowance Recorded Allowance Recorded Allowance (In thousands) Commercial and industrial $ 724 $ 146 $ 1,141,237 $ 15,918 $ 1,141,961 $ 16,064 Commercial real estate 733 — 2,550,541 40,765 2,551,274 40,765 Construction and land — — 225,983 5,119 225,983 5,119 Residential 15,900 67 2,823,255 8,790 2,839,155 8,857 Home equity 1,830 22 81,827 756 83,657 778 Consumer and other — — 134,674 399 134,674 399 Total $ 19,187 $ 235 $ 6,957,517 $ 71,747 $ 6,976,704 $ 71,982 December 31, 2018 Individually Evaluated Collectively Evaluated Total Recorded Allowance Recorded Allowance Recorded Allowance (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 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Premises and equipment consist of the following: As of December 31, 2019 2018 (In thousands) Leasehold improvements $ 55,482 $ 50,489 Furniture, fixtures, and equipment 56,134 51,921 Buildings 3,159 3,159 Subtotal 114,775 105,569 Less: Accumulated depreciation 70,248 60,157 Premises and equipment, net $ 44,527 $ 45,412 |
Lease Cost | The following table presents information about the Company's leases as of the dates indicated: Twelve months ended December 31, 2019 (In thousands) Lease cost Operating lease cost $ 19,004 Short-term lease cost 52 Variable lease cost 291 Less: Sublease income (101) Total operating lease cost $ 19,246 Twelve months ended December 31, 2019 (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 $ 20,230 ROU assets obtained in exchange for new operating lease liabilities $ 8,131 Weighted average remaining lease term for operating leases 8.1 years Weighted average discount rate for operating leases 3.2 % |
Lessee, Operating Lease, Liability, Maturity | In accordance with the terms of these leases, the Company is currently committed to minimum annual payments as follows as of the date indicated: December 31, 2019 (In thousands) 2020 $ 19,930 2021 19,799 2022 19,760 2023 18,972 2024 12,949 Thereafter 44,182 Total future minimum lease payments $ 135,592 Less: Amounts representing interest (18,378) Present value of net future minimum lease payments $ 117,214 |
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 the date indicated: 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 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following tables detail the changes in carrying value of goodwill by segment during the years ended December 31, 2019 and 2018. As of December 31, 2018 As of December 31, 2019 (In thousands) Goodwill Wealth Management and Trust (1) $ 57,607 $ 57,607 Total goodwill $ 57,607 $ 57,607 ___________________ (1) The goodwill balance in the Wealth Management and Trust segment as of December 31, 2019 includes goodwill from the legacy KLS entity that was merged with Boston Private Wealth in 2019. The KLS goodwill balance is included in the Wealth Management and Trust segment as of December 31, 2018 for comparative purposes. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies” for additional information on the merger. As of December 31, 2017 Transfer to held for sale (1) As of December 31, 2018 (In thousands) Goodwill Wealth Management and Trust $ 57,607 $ — $ 57,607 Holding Company and Eliminations 17,991 (17,991) — Total goodwill $ 75,598 $ (17,991) $ 57,607 ___________________ (1) The sale of the Company's ownership interest in BOS closed in December 2018. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 3: Asset Sales and Divestitures” for additional information on the sale. |
Schedule of Intangible Assets and Goodwill | The following table details total goodwill and the cumulative impairment charges thereon as of December 31, 2019 and 2018: Goodwill prior Cumulative Goodwill (In thousands) Private Banking $ 34,281 $ (34,281) $ — Wealth Management and Trust 67,135 (9,528) 57,607 Holding Company and Eliminations 75,162 (75,162) — Total goodwill at December 31, 2019 and 2018 $ 176,578 $ (118,971) $ 57,607 |
Schedule of Finite-Lived Intangible Assets | The following table shows the gross and net carrying amounts of identifiable intangible assets at December 31, 2019 and 2018: 2019 2018 Gross Accumulated Net Gross Accumulated Net (In thousands) Advisory contracts $ 23,950 $ 14,376 $ 9,574 $ 30,859 $ 18,632 $ 12,227 Mortgage servicing rights 816 38 778 — — — Total $ 24,766 $ 14,414 $ 10,352 $ 30,859 $ 18,632 $ 12,227 |
Schedule of Expected Amortization Expense | The estimated annual amortization expense for these identifiable intangible assets over the next five years is: Estimated intangible (In thousands) 2020 $ 2,528 2021 2,021 2022 2,002 2023 1,986 2024 1,485 Thereafter 330 Total $ 10,352 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2019 and 2018. December 31, 2019 December 31, 2018 Asset derivatives Liability derivatives Asset derivatives Liability derivatives Balance Fair Balance Fair Balance Fair Balance Fair (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 customer swaps Other assets 36,089 Other liabilities 36,580 Other assets 21,889 Other liabilities 22,385 Risk participation agreements Other assets 10 Other liabilities 242 Other assets 2 Other liabilities 152 Total $ 36,099 $ 36,822 $ 22,444 $ 22,537 ___________________ |
Schedule of Derivative Instruments, Gain (Loss) | The following table presents the effect of the Company’s derivative financial instruments in the Consolidated Statements of Operations for the years ended December 31, 2019 and 2018. Derivatives in Amount of Gain or (Loss) Recognized in Location of Gain Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Years Ended December 31, 2019 2018 2019 2018 (In thousands) Interest rate swaps $ (46) $ 990 Interest Expense $ 508 $ 907 Total $ (46) $ 990 $ 508 $ 907 ___________________ |
Derivatives Not Designated as Hedging Instruments | The following table presents the effect of the Bank’s derivative financial instruments, not designated as hedging instruments, in the Consolidated Statements of Operations for the years ended December 31, 2019, 2018 and 2017. Derivatives Not Location of Gain or (Loss) Amount of Gain or (Loss), Net, Recognized 2019 2018 2017 (In thousands) Interest rate swaps Other income/(expense) $ 6 $ (118) $ (851) Risk participation agreements Other income/(expense) (82) 158 354 Total $ (76) $ 40 $ (497) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Schedule of Deposits | Deposits are summarized as follows: December 31, 2019 2018 (In thousands) Demand deposits (noninterest bearing) $ 1,971,013 $ 1,951,274 Savings and NOW (1) 646,200 700,520 Money market (1) 3,969,330 3,338,891 Certificates of deposit under $100,000 (1) 145,226 265,883 Certificates of deposit $100,000 or more to less than $250,000 (1) 94,095 98,120 Certificates of deposit $250,000 or more 415,612 426,482 Total $ 7,241,476 $ 6,781,170 ___________________ (1) Includes brokered deposits. |
Time Deposit Maturities | Certificates of deposit had the following schedule of maturities: December 31, 2019 2018 (In thousands) Less than 3 months remaining $ 285,236 $ 239,789 3 to 6 months remaining 187,854 220,136 6 to 12 months remaining 154,837 235,337 Total due within 1 year $ 627,927 $ 695,262 1 to 2 years remaining 24,094 91,945 2 to 3 years remaining 2,402 2,887 3 to 4 years remaining 25 21 4 to 5 years remaining — — More than 5 years remaining 485 370 Total $ 654,933 $ 790,485 |
Federal Funds Purchased and S_2
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | |
Schedule of Short-term Debt | Federal Funds Securities Sold (In thousands) 2019 Outstanding at end of year $ — $ 53,398 Maximum outstanding at any month-end $ 230,000 $ 72,684 Average balance for the year $ 87,901 $ 57,358 Weighted average rate at end of year — % 0.16 % Weighted average rate paid for the year 2.28 % 0.17 % 2018 Outstanding at end of year $ 250,000 $ 36,928 Maximum outstanding at any month-end $ 250,000 $ 85,257 Average balance for the year $ 36,722 $ 65,370 Weighted average rate at end of year 2.64 % 0.15 % Weighted average rate paid for the year 1.89 % 0.11 % |
Federal Home Loan Bank Borrow_2
Federal Home Loan Bank Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Federal Home Loan Bank Borrowings | A summary of borrowings from the FHLB is as follows: December 31, 2019 Amount Weighted (In thousands) Within 1 year $ 274,365 2.43 % Over 1 to 2 years 61,740 2.19 % Over 2 to 3 years 3,985 1.93 % Over 3 to 4 years 7,349 3.24 % Over 4 to 5 years — — % Over 5 years 3,390 0.18 % Total $ 350,829 2.38 % |
Junior Subordinated Debentures
Junior Subordinated Debentures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Junior Subordinated Debt | The schedule below presents the detail of the Company’s junior subordinated debentures: December 31, 2019 2018 (In thousands) Boston Private Capital Trust II Junior Subordinated Debentures $ 103,093 $ 103,093 Boston Private Capital Trust I Junior Subordinated Debentures 3,270 3,270 Total $ 106,363 $ 106,363 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Schedule of Noncontrolling Interest Rollforward | The following tables present a roll forward of the Company’s Redeemable noncontrolling interests and Noncontrolling interests for the periods indicated: Year ended December 31, 2019 December 31, 2018 December 31, 2017 Redeemable noncontrolling interests Noncontrolling interests Redeemable noncontrolling interests Noncontrolling interests Redeemable noncontrolling interests Noncontrolling interests (In thousands) Noncontrolling interests at beginning of period $ 2,526 $ — $ 17,461 $ 5,186 $ 16,972 $ 4,161 Net income attributable to noncontrolling interests 362 — 2,630 857 3,354 1,114 Distributions (362) — (2,537) (817) (3,277) (1,083) Purchases/(sales) of ownership interests (56) — (12,951) (5,272) 235 85 Amortization of equity compensation 46 — 478 161 413 935 Adjustments to fair value (1,133) — (2,555) (115) (236) (26) Noncontrolling interests at end of period $ 1,383 $ — $ 2,526 $ — $ 17,461 $ 5,186 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | The following table presents the Company’s comprehensive income/(loss) and related tax effect for the years ended December 31, 2019, 2018, and 2017: 2019 2018 2017 Pre- Tax Net of Pre- Tax Net of Pre- Tax Net of (In thousands) Unrealized gain/(loss) on securities available-for-sale Net gains/(losses) arising during period $ 36,092 $ 10,101 $ 25,991 $ (13,205) $ (3,702) $ (9,503) $ 7,782 $ 3,063 $ 4,719 Less: Adjustment for realized gains/(losses), net — — — (596) (170) (426) 376 154 222 Net change 36,092 10,101 25,991 (12,609) (3,532) (9,077) 7,406 2,909 4,497 Unrealized gain/(loss) on cash flow hedges Net gains/(losses) arising during period (46) (15) (31) 985 285 700 325 135 190 Add: scheduled reclass and other (508) (148) (360) (907) (261) (646) 1,179 491 688 Net change (554) (163) (391) 78 24 54 1,504 626 878 Unrealized gain/(loss) on other Net gains/(losses) arising during period (432) (126) (306) 416 120 296 84 34 50 Net change (432) (126) (306) 416 120 296 84 34 50 Total other comprehensive income/(loss) 35,106 9,812 25,294 (12,115) (3,388) (8,727) 8,994 3,569 5,425 Net income attributable to the Company (1) 102,619 22,591 80,028 117,921 37,537 80,384 86,787 46,196 40,591 Total comprehensive income $ 137,725 $ 32,403 $ 105,322 $ 105,806 $ 34,149 $ 71,657 $ 95,781 $ 49,765 $ 46,016 ___________________ (1) Pre-tax Net income attributable to the Company is calculated as Income before income taxes plus Net income from discontinued operations, if any, less Net income attributable to noncontrolling interests. |
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 years ended December 31, 2019, 2018, and 2017: Description of component of Year ended December 31, Affected line item in 2019 2018 2017 (In thousands) Adjustment for realized gains/(losses) on securities available-for-sale, net: Pre-tax gain/(loss) $ — $ (596) $ 376 Gain/(loss) on sale of investments, net Tax (expense)/benefit — 170 (154) Income tax (expense)/benefit Net $ — $ (426) $ 222 Net income/(loss) attributable to the Company Net realized gain/(loss) on cash flow hedges: Hedge related to deposits Pre-tax gain/(loss) $ 508 $ 907 $ (1,179) Interest (expense) Tax (expense)/benefit (148) (261) 491 Income tax (expense)/benefit Net $ 360 $ 646 $ (688) Net income/(loss) attributable to the Company Total reclassifications for the period, net of tax $ 360 $ 646 $ (688) |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the after-tax changes in the components of the Company’s Accumulated other comprehensive income/(loss) for the years ended December 31, 2019, 2018, and 2017: Components of accumulated other comprehensive income/(loss) Unrealized gain/(loss) on securities available-for-sale Unrealized Unrealized Accumulated (In thousands) Balance at December 31, 2016 $ (11,194) $ (605) $ (749) $ (12,548) Other comprehensive income/(loss) before reclassifications 4,719 190 50 4,959 Amounts reclassified from other comprehensive income/(loss) (222) 688 — 466 Other comprehensive income/(loss), net 4,497 878 50 5,425 Balance at December 31, 2017 (8,140) 332 (850) (8,658) Other comprehensive income/(loss) before reclassifications (9,503) 700 296 (8,507) Amounts reclassified from other comprehensive income/(loss) 426 (646) — (220) Other comprehensive income/(loss), net (9,077) 54 296 (8,727) Reclassification due to the adoption of ASU 2017-12 and 2016-01 (339) 5 — (334) Balance at December 31, 2018 (17,556) 391 (554) (17,719) Other comprehensive income/(loss) before reclassifications 25,991 (31) (306) 25,654 Amounts reclassified from other comprehensive income/(loss) — (360) — (360) Other comprehensive income/(loss), net 25,991 (391) (306) 25,294 Balance at December 31, 2019 $ 8,435 $ — $ (860) $ 7,575 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earning Per Share | The following tables present a reconciliation of the components of basic and diluted EPS computations for the periods indicated: For the year ended 2019 2018 2017 (In thousands, except share and per share data) Basic earnings per share - Numerator: Net income from continuing operations $ 80,390 $ 81,869 $ 40,189 Less: Net income attributable to noncontrolling interests 362 3,487 4,468 Net income from continuing operations attributable to the Company 80,028 78,382 35,721 Decrease/(increase) in noncontrolling interests’ redemption values (1) 1,143 2,303 (1,412) Dividends on preferred stock — (3,985) (3,475) Total adjustments to income attributable to common shareholders 1,143 (1,682) (4,887) Net income from continuing operations attributable to common shareholders, treasury stock method 81,171 76,700 30,834 Net income from discontinued operations — 2,002 4,870 Net income attributable to common shareholders, treasury stock method $ 81,171 $ 78,702 $ 35,704 Basic earnings per share - Denominator: Weighted average basic common shares outstanding 83,430,740 83,596,685 82,430,633 Per share data - Basic earnings per share from: Continuing operations $ 0.97 $ 0.92 $ 0.37 Discontinued operations $ — $ 0.02 $ 0.06 Total attributable to common shareholders $ 0.97 $ 0.94 $ 0.43 For the year ended 2019 2018 2017 (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 $ 81,171 $ 76,700 $ 30,834 Net income from discontinued operations — 2,002 4,870 Net income attributable to common shareholders, after assumed dilution $ 81,171 $ 78,702 $ 35,704 Diluted earnings per share - Denominator: Weighted average basic common shares outstanding 83,430,740 83,596,685 82,430,633 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) 490,052 1,002,764 1,313,953 Warrants to purchase common stock (2) — 731,865 1,057,979 Dilutive common shares 490,052 1,734,629 2,371,932 Weighted average diluted common shares outstanding (2) 83,920,792 85,331,314 84,802,565 Per share data - Diluted earnings per share from: Continuing operations $ 0.97 $ 0.90 $ 0.36 Discontinued operations $ — $ 0.02 $ 0.06 Total attributable to common shareholders $ 0.97 $ 0.92 $ 0.42 Dividends per share declared and paid on common stock $ 0.48 $ 0.48 $ 0.44 _____________________ (1) See Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” for a description of the redemption values related to the Redeemable noncontrolling interests. In accordance with ASC 480, an increase in redemption value from period to period reduces Net income attributable to common shareholders. Decreases in redemption value from period to period increase Net 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. As of December 31, 2019, the cumulative change in redemption value remains a cumulative increase since adoption in 2009; therefore, subsequent changes will impact the earnings per share calculation. (2) The diluted EPS computations for the years ended December 31, 2019, 2018, and 2017 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: For the year ended 2019 2018 2017 Shares excluded due to anti-dilution (treasury stock method): (In thousands) Potential common shares from: Market-based stock options — 51 — Convertible trust preferred securities (1) 1 1 1 Total shares excluded due to anti-dilution 1 52 1 For the year ended 2019 2018 2017 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 (2) 853 209 67 Total shares excluded due to exercise price exceeding the average market price of common shares during the period 853 209 67 _____________________ (1) If the effect of the conversion of the trust preferred securities would have been dilutive, an immaterial amount of interest expense, net of tax, related to the convertible trust preferred securities would have been added back to Net income attributable to common shareholders for the diluted EPS computation for the years presented. (2) Options to purchase shares of common stock, non-participating performance- and certain time-based restricted stock, and other dilutive securities that were outstanding at period ends were not included in the computation of diluted EPS or in the above anti-dilution table because their exercise or conversion prices were greater than the average market price of the common shares during the respective periods. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of Income tax expense for continuing operations for the years ended December 31, 2019, 2018, and 2017 are as follows: Year Ended December 31, 2019 2018 2017 (In thousands) Current expense: Federal $ 8,592 $ 20,165 $ 17,176 State 8,576 12,152 6,509 Total current expense 17,168 32,317 23,685 Deferred expense: Federal 5,033 2,857 19,820 State 390 2,363 2,691 Total deferred expense 5,423 5,220 22,511 Income tax expense $ 22,591 $ 37,537 $ 46,196 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense attributable to Income from continuing operations differs from the amounts computed by applying the Federal statutory rate to pre-tax income from continuing operations. Reconciliations between the Federal statutory income tax rate of 21% to the effective income tax rate for the years ended December 31, 2019 and 2018 and the federal statutory income tax rate of 35% to the effective income tax rate for the year ended December 31, 2017 are as follows: Year Ended December 31, 2019 2018 2017 Statutory Federal income tax rate 21.0 % 21.0 % 35.0 % Increase/(decrease) resulting from: State and local income tax, net of Federal tax benefit 6.9 % 9.6 % 6.9 % Book versus tax difference — % 6.7 % — % Tax-exempt interest, net (5.6) % (4.8) % (10.3) % Tax credits (4.1) % (2.9) % (3.1) % Investments in affordable housing projects 3.4 % 1.9 % 2.2 % Noncontrolling interests — % (0.5) % (1.5) % Re-measurement of deferred tax assets and liabilities — % — % 13.7 % Nondeductible goodwill — % — % 10.1 % Other, net 0.3 % 0.4 % 0.5 % Effective income tax rate 21.9 % 31.4 % 53.5 % |
Schedule of Deferred Tax Assets and Liabilities | The components of gross deferred tax assets and gross deferred tax liabilities at December 31, 2019 and 2018 are as follows: December 31, 2019 2018 (In thousands) Gross deferred tax assets: Allowance for loan and OREO losses $ 21,789 $ 21,919 Interest on nonaccrual loans 172 254 Stock compensation 1,710 2,679 Deferred and accrued compensation 13,096 15,540 Lease liabilities 34,129 — Unrealized loss on investments — 6,781 Other 1,129 1,294 Total gross deferred tax assets 72,025 48,467 Gross deferred tax liabilities: Goodwill and acquired intangible assets 13,333 11,492 Fixed assets 4,518 2,248 Right-of-use assets 32,454 — Prepaid expenses 385 344 Contingent payments 6,764 7,680 Unrealized gain on investments 2,949 — Other 239 65 Total gross deferred tax liabilities 60,642 21,829 Net deferred tax assets $ 11,383 $ 26,638 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending gross amount of unrecognized tax benefits under the provisions of ASC 740-10 is as follows: 2019 2018 2017 (In thousands) Balance at January 1 $ 935 $ 1,025 $ 974 Additions based on tax positions related to the current year 177 149 183 Additions based on tax positions taken in prior years — — 227 Decreases based on the expiration of statute of limitations (203) (239) (359) Balance at December 31 $ 909 $ 935 $ 1,025 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Share-based Compensation Expense | Share-based payments recorded in Salaries and benefits expense are as follows: Year Ended December 31, 2019 2018 2017 (In thousands) Stock option and ESPP expense $ 1,676 $ 616 $ 480 Nonvested share expense 3,076 6,059 7,794 Subtotal 4,752 6,675 8,274 Tax benefit 1,223 1,784 3,188 Stock-based compensation expense, net of tax benefit $ 3,529 $ 4,891 $ 5,086 |
Schedule of Stock Option Activity | A summary of option activity for the year ended December 31, 2019 is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Aggregate Intrinsic Value ($ in thousands) Outstanding at December 31, 2018 663,455 $ 11.44 Granted 437,016 $ 11.02 Exercised 83,090 $ 6.78 Forfeited 16,234 $ 11.08 Expired — $ — Outstanding at December 31, 2019 1,001,147 $ 11.65 8.7 years $ 725.0 Exercisable at December 31, 2019 94,294 $ 9.07 6.4 years $ 301.0 |
Schedule of Restricted Stock Activity | A summary of the Company’s nonvested shares as of December 31, 2019 and changes during the year ended December 31, 2019, including shares under both the 2009 Plan and the Inducement Plan, is as follows: Shares Weighted Average Grant-Date Nonvested at December 31, 2018 1,213,928 $ 14.12 Granted 844,691 $ 11.05 Vested 551,400 $ 11.99 Forfeited 232,929 $ 13.85 Nonvested at December 31, 2019 1,274,290 $ 12.89 |
Other Operating Expense (Tables
Other Operating Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Expense | Major components of other operating expense are as follows: Year Ended December 31, 2019 2018 2017 (1) (In thousands) Insurance $ 2,655 $ 3,084 $ 3,286 Employee travel and meals 2,508 2,918 3,910 Other banking expenses 1,752 1,893 1,541 Pension costs - non service 1,669 423 (95) Publications and dues 1,171 1,123 1,028 Postage, express mail, and courier 630 840 974 Forms and supplies 479 704 890 Trading errors 1 511 108 OREO expenses — (21) 4 Provision/(credit) for off-balance sheet loan commitments (105) (157) (24) Other 3,175 2,843 2,852 Total $ 13,935 $ 14,161 $ 14,474 ___________________ (1) As a result of the adoption of ASU 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | The following tables present a reconciliation of the revenues, profits, assets, and other significant items of reportable segments as of and for the years ended December 31, 2019, 2018, and 2017. Year ended December 31, 2019 2018 2017 Private Banking (1) (In thousands) Net interest income $ 231,796 $ 238,036 $ 227,280 Fees and other income 13,869 9,366 10,856 Total revenues 245,665 247,402 238,136 Provision/(credit) for loan losses (3,564) (2,198) (7,669) Operating expense (2) 157,891 165,263 149,008 Income before income taxes 91,338 84,337 96,797 Income tax expense 19,110 16,313 43,356 Net income from continuing operations 72,228 68,024 53,441 Net income attributable to the Company $ 72,228 $ 68,024 $ 53,441 Assets $ 8,746,289 $ 8,424,967 $ 8,177,304 Amortization of intangibles $ 37 $ — $ — Depreciation $ 9,737 $ 8,646 $ 5,639 Year ended December 31, 2019 2018 2017 Wealth Management and Trust (1) (In thousands) Net interest income $ 407 $ 338 $ 122 Fees and other income 75,949 79,192 76,237 Total revenues 76,356 79,530 76,359 Operating expense (2) 58,375 66,492 69,966 Income before income taxes 17,981 13,038 6,393 Income tax expense 5,768 4,145 3,982 Net income from continuing operations $ 12,213 $ 8,893 $ 2,411 Net income attributable to the Company $ 12,213 $ 8,893 $ 2,411 Assets $ 148,803 $ 130,346 $ 120,061 Amortization of intangibles $ 2,654 $ 2,775 $ 2,882 Depreciation $ 1,297 $ 1,660 $ 1,893 Year ended December 31, 2019 2018 2017 Holding Company and Eliminations (1) (3) (In thousands) Net interest income (4) $ (4,127) $ (3,808) $ (2,716) Fees and other income 11,729 61,439 66,873 Total revenues 7,602 57,631 64,157 Operating expense 13,940 35,600 80,962 Income/(loss) before income taxes (6,338) 22,031 (16,805) Income tax expense/(benefit) (2,287) 17,079 (1,142) Net income/(loss) from continuing operations (4,051) 4,952 (15,663) Net income attributable to noncontrolling interests 362 3,487 4,468 Net income from Discontinued operations (5) — 2,002 4,870 Net income/(loss) attributable to the Company $ (4,413) $ 3,467 $ (15,261) Assets (including eliminations) $ (64,592) $ (60,688) $ 14,379 Amortization of intangibles $ — $ 154 $ 2,719 Depreciation $ 194 $ 388 $ 574 Year ended December 31, 2019 2018 2017 Total Company (1) (3) (In thousands) Net interest income $ 228,076 $ 234,566 $ 224,686 Fees and other income 101,547 149,997 153,966 Total revenues 329,623 384,563 378,652 Provision/(credit) for loan losses (3,564) (2,198) (7,669) Operating expense 230,206 267,355 299,936 Income before income taxes 102,981 119,406 86,385 Income tax expense 22,591 37,537 46,196 Net income from continuing operations 80,390 81,869 40,189 Net income attributable to noncontrolling interests 362 3,487 4,468 Net income from Discontinued operations (5) — 2,002 4,870 Net income attributable to the Company $ 80,028 $ 80,384 $ 40,591 Assets $ 8,830,501 $ 8,494,625 $ 8,311,744 Amortization of intangibles $ 2,691 $ 2,929 $ 5,601 Depreciation $ 11,228 $ 10,694 $ 8,106 ___________________ (1) Due to rounding, the sum of individual segment results may not add up to the Total Company results. (2) Operating expense includes Restructuring expense of $1.3 million and $0.4 million for the year ended December 31, 2019 related to the Private Banking and Wealth Management and Trust segments, respectively. Operating expense includes Restructuring expense of $6.6 million and $1.2 million for the year ended December 31, 2018 related to the Private Banking and Wealth Management and Trust segments, respectively. (3) The results of Anchor and BOS for the periods owned in 2018 and 2017 are included in the Holding Company and Eliminations segment and the Total Company. Most categories have decreased in 2019 relative to 2018 and 2017 primarily driven by the sales of Anchor and BOS. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 3: Asset Sales and Divestitures” for additional information. (4) Interest expense on junior subordinated debentures is included in the Holding Company and Eliminations segment. (5) The Holding Company and Eliminations segment calculation of Net income attributable to the Company includes Net income from discontinued operations of zero , $2.0 million and $4.9 million for the years ended December 31, 2019, 2018, and 2017 , respectively. The Company received the final payment related to a revenue sharing agreement with Westfield |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2019 and 2018, aggregated by the level in the fair value hierarchy within which those measurements fall: As of December 31, 2019 Fair value measurements at reporting date using: Quoted prices in Significant other Significant (In thousands) Assets: Available-for-sale securities U.S. government and agencies $ 19,940 $ — $ 19,940 $ — Government-sponsored entities 156,255 — 156,255 — Municipal bonds 325,455 — 325,455 — Mortgage-backed securities 476,634 — 476,634 — Total available-for-sale securities 978,284 — 978,284 — Equity securities 18,810 18,810 — — Derivatives - interest rate customer swaps 36,089 — 36,089 — Derivatives - risk participation agreements 10 — 10 — Trading securities held in the “rabbi trust” (1) 6,119 6,119 — — Liabilities: Derivatives - interest rate customer swaps $ 36,580 $ — $ 36,580 $ — Derivatives - risk participation agreements 242 — 242 — Deferred compensation “rabbi trust” (1) 6,112 6,112 — — As of December 31, 2018 Fair value measurements at reporting date using: Quoted prices in Significant other Significant (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 Measurements, Nonrecurring | The following tables present the Company’s assets and liabilities measured at fair value on a non-recurring basis during the periods ended December 31, 2019 and 2018, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall: As of December 31, 2019 Fair value measurements at reporting date using: Gain (losses) Quoted prices in Significant Significant Year ended December 31, 2019 (In thousands) Assets: Impaired loans (1) $ 109 $ — $ — $ 109 $ 710 $ 109 $ — $ — $ 109 $ 710 ___________________ (1) Collateral-dependent impaired loans held as of December 31, 2019 that had write-downs in fair value or whose specific reserve changed during 2019. As of December 31, 2018 Fair value measurements at reporting date using: Gain (losses) Quoted prices in Significant Significant Year ended December 31, 2018 (In thousands) Assets: Impaired loans (1) $ 2,192 $ — $ — $ 2,192 $ (1,648) $ 2,192 $ — $ — $ 2,192 $ (1,648) ___________________ (1) Collateral-dependent impaired loans held as of December 31, 2018 that had write-downs in fair value or whose specific reserve changed during 2018. |
Fair Value Measurement Inputs and 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 December 31, 2019 Fair Valuation Unobservable Range of Inputs Utilized Weighted Average of Inputs Utilized (In thousands) Impaired Loans $ 109 Appraisals of Discount for costs to sell 10% 10% Appraisal adjustments —% —% As of December 31, 2018 Fair Valuation Unobservable Range of Inputs Utilized Weighted Average of Inputs Utilized (In thousands) Impaired Loans $ 2,192 Appraisals of Collateral Discount for costs to sell —% - 9% 5% 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 (other than certain loans, as noted below): As of December 31, 2019 Book Value Fair Value Quoted prices Significant Significant (In thousands) FINANCIAL ASSETS: Cash and cash equivalents $ 292,479 $ 292,479 $ 292,479 $ — $ — Investment securities held-to-maturity 48,212 47,949 — 47,949 — Loans held for sale 7,386 7,475 — 7,475 — Loans, net 6,904,722 6,883,360 — — 6,883,360 Other financial assets 67,348 67,348 — 67,348 — FINANCIAL LIABILITIES: Deposits $ 7,241,476 $ 7,241,739 $ — $ 7,241,739 $ — Securities sold under agreements to repurchase 53,398 53,398 — 53,398 — Federal Home Loan Bank borrowings 350,829 351,233 — 351,233 — Junior subordinated debentures 106,363 96,363 — — 96,363 Other financial liabilities 1,957 1,957 — 1,957 — As of December 31, 2018 Book Value Fair Value Quoted prices Significant Significant (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 — |
Financial Instruments With Of_2
Financial Instruments With Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks | Financial instruments with off-balance sheet risk are summarized as follows: December 31, 2019 2018 (In thousands) Commitments to originate loans Variable rate $ 60,473 $ 59,766 Fixed rate 63,747 38,332 Total commitments to originate new loans $ 124,220 $ 98,098 Unadvanced portion of loans and unused lines of credit $ 1,468,782 $ 1,413,737 Standby letters of credit $ 49,117 $ 36,755 Forward commitments to sell loans $ 11,850 $ 4,657 |
Boston Private Financial Hold_2
Boston Private Financial Holdings, Inc. (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | December 31, 2019 December 31, 2018 (In thousands) Assets: Cash and cash equivalents $ 51,324 $ 51,088 Investment in wholly-owned and majority-owned subsidiaries 857,062 802,642 Investment in partnerships and trusts 6,340 6,340 Other assets 27,453 36,483 Total assets $ 942,179 $ 896,553 Liabilities: Junior subordinated debentures $ 106,363 $ 106,363 Deferred income taxes 2,895 12,968 Other liabilities 12,520 20,742 Total liabilities 121,778 140,073 Redeemable Noncontrolling Interests (1) 1,383 2,526 Total Shareholders’ Equity 819,018 753,954 Total liabilities, redeemable noncontrolling interests and shareholders’ equity $ 942,179 $ 896,553 ___________________ (1) Includes noncontrolling interests, if any, and the maximum redemption value of Redeemable noncontrolling interests. |
Condensed Income Statement | Year ended December 31, 2019 2018 2017 (In thousands) Income: Interest income $ 62 $ 107 $ 180 Dividends from subsidiaries 54,606 45,448 49,316 Gain/(loss) on sale of affiliates — 18,142 (1,264) Other income 1,557 59 193 Total income 56,225 63,756 48,425 Operating Expense: Salaries and employee benefits 2,106 2,121 4,061 Professional fees 1,241 1,381 1,369 Interest expense 4,189 3,925 2,919 Other expenses 2,185 1,406 1,424 Total operating expense 9,721 8,833 9,773 Income before income taxes 46,504 54,923 38,652 Income tax expense/(benefit) (2,639) 14,628 (6,880) Net income from discontinued operations — 2,002 4,870 Income before equity in undistributed earnings of subsidiaries 49,143 42,297 50,402 Equity/(loss) in undistributed earnings of subsidiaries 30,885 38,087 (9,811) Net income attributable to the Company $ 80,028 $ 80,384 $ 40,591 |
Condensed Cash Flow Statement | Year ended December 31, 2019 2018 2017 (In thousands) Cash flows from operating activities: Net income attributable to the Company $ 80,028 $ 80,384 $ 40,591 Net income from discontinued operations — 2,002 4,870 Net income from continuing operations 80,028 78,382 35,721 Adjustments to reconcile Net income from continuing operations to Net cash provided by/(used in) operating activities: Equity in earnings/(loss) of subsidiaries: (85,480) (83,232) (39,326) Dividends from subsidiaries: 54,606 45,448 49,316 Depreciation and amortization 201 (186) 3,553 (Gain)/loss on sale of affiliates — (18,142) 1,264 Net decrease/(increase) in other operating activities (8,108) 13,181 (2,440) Net cash provided by/(used in) operating activities of continuing operations 41,247 35,451 48,088 Net cash provided by/(used in) operating activities of discontinued operations — 2,002 4,870 Net cash provided by/(used in) operating activities 41,247 37,453 52,958 Cash flows from investing activities: Contingent consideration from divestitures 4,507 1,233 — Capital investments in subsidiaries (78) (96) (54) Cash received from divestitures — 52,981 — Net cash provided by/(used in) investing activities 4,429 54,118 (54) Cash flows from financing activities: Redemption of Series D preferred stock — (50,000) — Equity sales in minority-owned subsidiaries — 1,021 1,410 Repurchase of common stock (7,193) (20,000) — Dividends paid to common shareholders (40,380) (40,685) (37,054) Dividends paid to preferred shareholders — (1,738) (3,475) Proceeds from stock option exercises 562 1,661 882 Proceeds from issuance of common stock, net 2,413 434 2,740 Other equity adjustments (842) 2,463 (5,740) Net cash provided by/(used in) financing activities (45,440) (106,844) (41,237) Net (decrease)/increase in cash and cash equivalents 236 (15,273) 11,667 Cash and cash equivalents at beginning of year 51,088 66,361 54,694 Cash and cash equivalents at end of year $ 51,324 $ 51,088 $ 66,361 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Actual For capital adequacy To be well capitalized Basel III Amount Ratio Amount Ratio Amount Ratio (In thousands) As of December 31, 2019 Common Equity Tier 1 risk-based capital Company $ 745,926 11.42 % $ 293,886 4.5 % n/a n/a 7.0 % Boston Private Bank 778,635 11.97 % 292,717 4.5 % $ 422,813 6.5 % 7.0 % Tier 1 risk-based capital Company 846,337 12.96 % 391,848 6.0 % n/a n/a 8.5 % Boston Private Bank 778,635 11.97 % 390,289 6.0 % 520,386 8.0 % 8.5 % Total risk-based capital Company 919,573 14.08 % 522,464 8.0 % n/a n/a 10.5 % Boston Private Bank 851,733 13.09 % 520,386 8.0 % 650,482 10.0 % 10.5 % Tier 1 leverage capital Company 846,337 9.77 % 346,398 4.0 % n/a n/a 4.0 % Boston Private Bank 778,635 9.03 % 344,958 4.0 % 431,198 5.0 % 4.0 % As of December 31, 2018 Common equity tier 1 risk-based capital Company $ 702,728 11.40 % $ 277,275 4.5 % n/a n/a 7.0 % Boston Private Bank 745,051 12.13 % 276,352 4.5 % $ 399,175 6.5 % 7.0 % Tier 1 risk-based capital Company 803,311 13.04 % 369,701 6.0 % n/a n/a 8.5 % Boston Private Bank 745,051 12.13 % 368,469 6.0 % 491,292 8.0 % 8.5 % Total risk-based capital Company 879,927 14.28 % 492,934 8.0 % n/a n/a 10.5 % Boston Private Bank 821,584 13.38 % 491,292 8.0 % 614,115 10.0 % 10.5 % Tier 1 leverage capital Company 803,311 9.54 % 336,648 4.0 % n/a n/a 4.0 % Boston Private Bank 745,051 8.92 % 334,029 4.0 % 417,537 5.0 % 4.0 % ___________________ n/a - not applicable (1) Required capital ratios under the Basel III capital rules with the fully phased-in capital conservation buffer added to the minimum risk-based capital ratios. The fully phased-in ratios are effective for 2019. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Fee Income Considered In-scope of ASC 606 | The following table presents the fee income considered in-scope of ASC 606 by contracts with customers: Year Ended December 31, 2019 2018 2017 (In thousands) Fees and other income: Wealth management and trust fees $ 75,757 $ 99,818 $ 97,921 Investment management fees 10,155 21,728 45,515 Other income 2,813 3,910 3,566 Revenue from contracts with customers 88,725 125,456 147,002 Non-interest income within the scope of other GAAP topics 12,822 24,541 6,964 Total non-interest income $ 101,547 $ 149,997 $ 153,966 |
Selected Quarterly Data (Unau_2
Selected Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The following tables present selected quarterly financial data for 2019 and 2018: 2019 (1) Q4 Q3 Q2 Q1 (In thousands, except per share data) Net interest income $ 56,125 $ 56,153 $ 57,460 $ 58,338 Fees and other income 26,793 25,126 24,380 25,248 Total revenues 82,918 81,279 81,840 83,586 Provision/(credit) for loan losses (3,668) 167 1,363 (1,426) Operating expense 58,457 55,537 55,659 60,553 Income before income taxes 28,129 25,575 24,818 24,459 Income tax expense 6,788 5,517 5,369 4,917 Less: Net income attributable to noncontrolling interests 97 96 69 100 Net income attributable to the Company $ 21,244 $ 19,962 $ 19,380 $ 19,442 Net earnings per share attributable to common shareholders: Basic earnings per share (2) $ 0.26 $ 0.24 $ 0.22 $ 0.25 Diluted earnings per share (2) $ 0.26 $ 0.24 $ 0.22 $ 0.25 2018 (1) Q4 Q3 Q2 Q1 (In thousands, except per share data) Net interest income $ 59,997 $ 59,641 $ 57,545 $ 57,383 Fees and other income 45,845 32,314 32,095 39,743 Total revenues 105,842 91,955 89,640 97,126 Provision/(credit) for loan losses 93 (949) 453 (1,795) Operating expense 63,557 68,557 64,384 70,857 Income before income taxes 42,192 24,347 24,803 28,064 Income tax expense 8,651 5,461 17,399 6,026 Net income/(loss) from discontinued operations 306 — (2) 1,698 Less: Net income/(loss) attributable to noncontrolling interests 545 924 968 1,050 Net income attributable to the Company $ 33,302 $ 17,962 $ 6,434 $ 22,686 Net earnings per share attributable to common shareholders: Basic earnings per share (2) $ 0.43 $ 0.20 $ 0.03 $ 0.27 Diluted earnings per share (2) $ 0.42 $ 0.20 $ 0.03 $ 0.27 ___________________ (1) Due to rounding, the sum of the four quarters may not add up to the year to date total. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies Significant Accounting Policies Text (Details) | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2019reportableSegmentsubsidiary | Dec. 31, 2019USD ($)marketplan | Dec. 31, 2019USD ($)marketplan | Dec. 31, 2019USD ($)segmentmarketplan | Dec. 31, 2019USD ($)marketplanreportableSegment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | Jan. 01, 2017USD ($) | [2] | ||
Accounting Policies [Line Items] | ||||||||||||
Number of reportable segments | 3 | 2 | 2 | |||||||||
Cash reserve | $ 3,400,000 | $ 3,400,000 | $ 3,400,000 | $ 3,400,000 | $ 4,300,000 | |||||||
Other than temporary impairment investments | $ 0 | $ 0 | $ 0 | |||||||||
Number of stock-based compensation plans | plan | 3 | 3 | 3 | 3 | ||||||||
Present value of net future minimum lease payments | $ 117,214,000 | $ 117,214,000 | $ 117,214,000 | $ 117,214,000 | ||||||||
Right-of-use assets | $ 102,075,000 | $ 102,075,000 | $ 102,075,000 | $ 102,075,000 | ||||||||
Leasehold improvements | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Property plant and equipment useful life | 10 years | |||||||||||
Buildings | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Property plant and equipment useful life | 40 years | |||||||||||
Furniture and Fixtures | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Property plant and equipment useful life | 6 years | |||||||||||
Office Equipment | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Property plant and equipment useful life | 5 years | |||||||||||
Computer Equipment | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Property plant and equipment useful life | 3 years | |||||||||||
Minimum | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Finite-lived intangible asset useful life | 8 years | |||||||||||
Award vesting period | 1 year | |||||||||||
Maximum | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Finite-lived intangible asset useful life | 15 years | |||||||||||
Award vesting period | 5 years | |||||||||||
Private Banking | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Number of geographic markets | market | 3 | 3 | 3 | 3 | ||||||||
Affiliate Partners Segment | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Number of subsidiaries | subsidiary | 2 | |||||||||||
Accumulated Other Comprehensive Income/ (Loss) | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Reclassification due to change in accounting principle | $ (334,000) | [1] | $ (1,535,000) | |||||||||
Retained Earnings | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Reclassification due to change in accounting principle | 334,000 | [1] | $ 1,535,000 | |||||||||
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Income/ (Loss) | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Reclassification due to change in accounting principle | (339,000) | |||||||||||
Accounting Standards Update 2016-01 | Retained Earnings | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Reclassification due to change in accounting principle | $ 339,000 | |||||||||||
Accounting Standards Update 2016-02 | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Present value of net future minimum lease payments | $ 124,100,000 | |||||||||||
Right-of-use assets | $ 108,500,000 | |||||||||||
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Income/ (Loss) | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Reclassification due to change in accounting principle | (1,500,000) | |||||||||||
Accounting Standards Update 2018-02 | Retained Earnings | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Reclassification due to change in accounting principle | $ 1,500,000 | |||||||||||
Residential | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Amount eligible for purchase by FNMA, general limit | $ 484,000 | $ 484,000 | $ 484,000 | $ 484,000 | ||||||||
Amount eligible for purchase by FNMA, high cost limit | $ 727,000 | $ 727,000 | $ 727,000 | $ 727,000 | ||||||||
[1] | Reclassification due to the adoption of ASU 2016-01 and ASU 2017-12. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies.” | |||||||||||
[2] | Reclassification due to the adoption of ASU 2018-02. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies.” |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 1,600 | $ 2,100 | $ 5,800 | $ 1,646 | $ 7,828 | $ 0 | |
Restructuring and Related Cost, Description | in connection with a previously announced reduction in force to the Company's workforce of approximately 7% of total staffing, as well as other employee benefit and technology related initiatives. The restructuring is intended to improve the Company's operating efficiency and enhance earnings. | ||||||
Reduction in workforce related to restructuring (percent) | 7.00% | ||||||
Restructuring Reserve [Roll Forward] | |||||||
Accrued charges, beginning of period | $ 4,685 | 4,685 | 337 | 1,977 | |||
Costs incurred | 1,600 | 2,100 | $ 5,800 | 1,646 | 7,828 | 0 | |
Costs paid | (5,016) | (3,480) | (1,640) | ||||
Accrued charges, end of period | 4,685 | $ 4,685 | 1,315 | 4,685 | 337 | ||
Severance Charges | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 1,646 | 5,457 | 0 | ||||
Restructuring Reserve [Roll Forward] | |||||||
Accrued charges, beginning of period | 3,896 | 3,896 | 337 | 1,977 | |||
Costs incurred | 1,646 | 5,457 | 0 | ||||
Costs paid | (5,016) | (1,898) | (1,640) | ||||
Accrued charges, end of period | 3,896 | 3,896 | 526 | 3,896 | 337 | ||
Other Associated Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 0 | 2,371 | 0 | ||||
Restructuring Reserve [Roll Forward] | |||||||
Accrued charges, beginning of period | $ 789 | 789 | 0 | 0 | |||
Costs incurred | 0 | 2,371 | 0 | ||||
Costs paid | 0 | (1,582) | 0 | ||||
Accrued charges, end of period | $ 789 | $ 789 | $ 789 | $ 789 | $ 0 |
Asset Sales and Divestitures (D
Asset Sales and Divestitures (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net present value of asset sold | $ 0 | $ 52,981 | $ 0 | ||
Gain/(loss) on sale of affiliates | 0 | 18,142 | (1,264) | ||
Goodwill impairment charge | 0 | 0 | $ 24,901 | ||
Bingham, Osborn & Scarborough, LLC | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale | $ 21,100 | ||||
Revenue sharing term | 8 years | ||||
Net present value of asset sold | $ 13,900 | ||||
Contingent consideration receivable | 12,100 | ||||
Gain/(loss) on sale of affiliates | $ 18,100 | ||||
Gain (loss) on sale of affiliates, applicable tax | $ 3,500 | ||||
Anchor | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale | 31,800 | ||||
Net present value of asset sold | 15,400 | ||||
Contingent consideration receivable | $ 11,900 | ||||
Gain/(loss) on sale of affiliates | (1,300) | ||||
Gain (loss) on sale of affiliates, applicable tax | $ 12,700 | ||||
Goodwill impairment charge | $ 24,900 | ||||
Westfield Capital Management Company | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Remaining ownership percentage | 12.50% | 12.50% | |||
Remaining annual maximum revenue | $ 11,600 | $ 11,600 |
Investment Securities Schedule
Investment Securities Schedule of Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investment securities available-for-sale: | ||
Amortized Cost | $ 966,900 | $ 1,018,774 |
Unrealized Gains | 15,002 | 2,437 |
Unrealized Losses | (3,618) | (27,146) |
Available-for-sale, fair value | 978,284 | 994,065 |
Investment securities held-to-maturity: | ||
Amortized Cost | 48,212 | 70,438 |
Unrealized Gains | 53 | 2 |
Unrealized Losses | (316) | (1,845) |
Fair Value | 47,949 | 68,595 |
Equity Securities, FV-NI [Abstract] | ||
Amortized cost | 18,810 | 14,228 |
Fair Value | 18,810 | 14,228 |
U.S. government and agencies | ||
Investment securities available-for-sale: | ||
Amortized Cost | 19,955 | 30,043 |
Unrealized Gains | 42 | 0 |
Unrealized Losses | (57) | (929) |
Available-for-sale, fair value | 19,940 | 29,114 |
Investment securities held-to-maturity: | ||
Amortized Cost | 9,898 | |
Unrealized Gains | 2 | |
Unrealized Losses | 0 | |
Fair Value | 9,900 | |
Government-sponsored entities | ||
Investment securities available-for-sale: | ||
Amortized Cost | 154,963 | 211,655 |
Unrealized Gains | 1,292 | 0 |
Unrealized Losses | 0 | (3,952) |
Available-for-sale, fair value | 156,255 | 207,703 |
Municipal bonds | ||
Investment securities available-for-sale: | ||
Amortized Cost | 312,977 | 309,837 |
Unrealized Gains | 12,551 | 2,223 |
Unrealized Losses | (73) | (3,101) |
Available-for-sale, fair value | 325,455 | 308,959 |
Mortgage-backed securities | ||
Investment securities available-for-sale: | ||
Amortized Cost | 479,005 | 467,239 |
Unrealized Gains | 1,117 | 214 |
Unrealized Losses | (3,488) | (19,164) |
Available-for-sale, fair value | 476,634 | 448,289 |
Investment securities held-to-maturity: | ||
Amortized Cost | 48,212 | 60,540 |
Unrealized Gains | 53 | |
Unrealized Losses | (316) | (1,845) |
Fair Value | 47,949 | 58,695 |
Other | ||
Equity Securities, FV-NI [Abstract] | ||
Fair Value | 18,810 | |
Money market mutual funds | ||
Equity Securities, FV-NI [Abstract] | ||
Amortized cost | 18,810 | 14,228 |
Fair Value | $ 18,810 | $ 14,228 |
Investment Securities Maturitie
Investment Securities Maturities of Available for sale Securities by Type (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Amortized Cost | $ 966,900 | $ 1,018,774 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Total | 978,284 | 994,065 |
U.S. government and agencies | ||
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Within one year | 0 | |
After one, but within five years | 9,999 | |
After five, but within ten years | 9,956 | |
Greater than ten years | 0 | |
Amortized Cost | 19,955 | 30,043 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Within one year | 0 | |
After one, but within five years | 10,041 | |
After five, but within ten years | 9,899 | |
Greater than ten years | 0 | |
Total | $ 19,940 | 29,114 |
Debt Securities, Available-for-sale, Maturity, Weighted Average Yield [Abstract] | ||
Within one year | 0.00% | |
After one, but within five years | 1.75% | |
After five, but within ten years | 1.70% | |
Greater than ten years | 0.00% | |
Total | 1.73% | |
Government-sponsored entities | ||
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Within one year | $ 11,498 | |
After one, but within five years | 128,356 | |
After five, but within ten years | 15,109 | |
Greater than ten years | 0 | |
Amortized Cost | 154,963 | 211,655 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Within one year | 11,527 | |
After one, but within five years | 129,501 | |
After five, but within ten years | 15,227 | |
Greater than ten years | 0 | |
Total | $ 156,255 | 207,703 |
Debt Securities, Available-for-sale, Maturity, Weighted Average Yield [Abstract] | ||
Within one year | 1.92% | |
After one, but within five years | 1.97% | |
After five, but within ten years | 2.00% | |
Greater than ten years | 0.00% | |
Total | 1.97% | |
Municipal bonds | ||
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Within one year | $ 18,164 | |
After one, but within five years | 27,531 | |
After five, but within ten years | 59,884 | |
Greater than ten years | 207,398 | |
Amortized Cost | 312,977 | 309,837 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Within one year | 18,246 | |
After one, but within five years | 27,874 | |
After five, but within ten years | 62,524 | |
Greater than ten years | 216,811 | |
Total | $ 325,455 | 308,959 |
Debt Securities, Available-for-sale, Maturity, Weighted Average Yield [Abstract] | ||
Within one year | 1.76% | |
After one, but within five years | 2.14% | |
After five, but within ten years | 2.56% | |
Greater than ten years | 2.66% | |
Total | 2.54% | |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Within one year | $ 118 | |
After one, but within five years | 139,216 | |
After five, but within ten years | 148,127 | |
Greater than ten years | 191,544 | |
Amortized Cost | 479,005 | 467,239 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Within one year | 117 | |
After one, but within five years | 139,311 | |
After five, but within ten years | 147,278 | |
Greater than ten years | 189,928 | |
Total | $ 476,634 | $ 448,289 |
Debt Securities, Available-for-sale, Maturity, Weighted Average Yield [Abstract] | ||
Within one year | 1.91% | |
After one, but within five years | 2.15% | |
After five, but within ten years | 2.15% | |
Greater than ten years | 2.21% | |
Total | 2.17% |
Investment Securities Maturit_2
Investment Securities Maturities of Held to Maturity Securities by Type (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized cost | ||
Amortized Cost | $ 48,212 | $ 70,438 |
Fair value | ||
Total | 47,949 | 68,595 |
U.S. government and agencies | ||
Amortized cost | ||
Amortized Cost | 9,898 | |
Fair value | ||
Total | 9,900 | |
Mortgage-backed securities | ||
Amortized cost | ||
Within one year | 0 | |
After one, but within five years | 0 | |
After five, but within ten years | 39,389 | |
Greater than ten years | 8,823 | |
Amortized Cost | 48,212 | 60,540 |
Fair value | ||
Within one year | 0 | |
After one, but within five years | 0 | |
After five, but within ten years | 39,173 | |
Greater than ten years | 8,776 | |
Total | $ 47,949 | $ 58,695 |
Weighted average yield | ||
Within one year | 0.00% | |
After one, but within five years | 0.00% | |
After five, but within ten years | 2.22% | |
Greater than ten years | 2.48% | |
Total | 2.27% |
Investment Securities Maturit_3
Investment Securities Maturities of Equity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities amortized cost | $ 18,810 | $ 14,228 |
Equity securities at fair value | 18,810 | 14,228 |
Money market mutual funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities, within one year, amortized cost | 18,810 | |
Equity securities, within one year, fair value | $ 18,810 | |
Equity securities, within one year, weighted average yield | 2.07% | |
Equity securities amortized cost | $ 18,810 | 14,228 |
Equity securities at fair value | $ 18,810 | $ 14,228 |
Equity securities, weighted average yield | 2.07% |
Investment Securities Realized
Investment Securities Realized Gain (Loss) on Securities Sold (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales (1) | $ 0 | $ 53,412 | $ 81,221 |
Realized gains | 0 | 7 | 519 |
Realized losses | 0 | (597) | $ (143) |
Change in unrealized gain (loss) on equity securities reflected in the Consolidated Statements of Operations | $ 0 | $ (23) |
Investment Securities Available
Investment Securities Available for Sale Securities in Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale securities, 12 months or longer | $ 187,043 | $ 800,914 |
Available-for-sale securities, Total | 348,539 | 828,777 |
Available-for-sale securities, Less than 12 months | 161,496 | 27,863 |
Available-for-sale securities, Unrealized losses | ||
Available-for-sale securities, Less than 12 months | (1,146) | (139) |
Available-for-sale securities, 12 months or longer | (2,472) | (27,007) |
Available-for-sale securities, Total | $ (3,618) | $ (27,146) |
Available-for-sale securities, Number of securities | security | 91 | 232 |
Held-to-maturity securities, Fair value | ||
Held-to-maturity securities, Less than 12 months | $ 10,328 | $ 0 |
Held-to-maturity securities, 12 months or longer | 30,451 | 58,695 |
Held-to-maturity securities, Total | 40,779 | 58,695 |
Held-to-maturity securities, Unrealized losses | ||
Held-to-maturity securities, Less than 12 months | (11) | 0 |
Held-to-maturity securities, 12 months or longer | (305) | (1,845) |
Held-to-maturity securities, Total | $ (316) | $ (1,845) |
Held-to-maturity securities, Number of securities | security | 14 | 16 |
U.S. government and agencies | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale securities, 12 months or longer | $ 0 | $ 29,114 |
Available-for-sale securities, Total | 9,899 | 29,114 |
Available-for-sale securities, Less than 12 months | 9,899 | 0 |
Available-for-sale securities, Unrealized losses | ||
Available-for-sale securities, Less than 12 months | (57) | 0 |
Available-for-sale securities, 12 months or longer | 0 | (929) |
Available-for-sale securities, Total | $ (57) | $ (929) |
Available-for-sale securities, Number of securities | security | 1 | 5 |
Government-sponsored entities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale securities, 12 months or longer | $ 0 | $ 207,703 |
Available-for-sale securities, Total | 1,725 | 207,703 |
Available-for-sale securities, Less than 12 months | 1,725 | 0 |
Available-for-sale securities, Unrealized losses | ||
Available-for-sale securities, Less than 12 months | 0 | 0 |
Available-for-sale securities, 12 months or longer | 0 | (3,952) |
Available-for-sale securities, Total | $ 0 | $ (3,952) |
Available-for-sale securities, Number of securities | security | 1 | 32 |
Municipal bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale securities, 12 months or longer | $ 0 | $ 130,209 |
Available-for-sale securities, Total | 9,149 | 155,603 |
Available-for-sale securities, Less than 12 months | 9,149 | 25,394 |
Available-for-sale securities, Unrealized losses | ||
Available-for-sale securities, Less than 12 months | (73) | (128) |
Available-for-sale securities, 12 months or longer | 0 | (2,973) |
Available-for-sale securities, Total | $ (73) | $ (3,101) |
Available-for-sale securities, Number of securities | security | 4 | 85 |
Mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale securities, 12 months or longer | $ 187,043 | $ 433,888 |
Available-for-sale securities, Total | 327,766 | 436,357 |
Available-for-sale securities, Less than 12 months | 140,723 | 2,469 |
Available-for-sale securities, Unrealized losses | ||
Available-for-sale securities, Less than 12 months | (1,016) | (11) |
Available-for-sale securities, 12 months or longer | (2,472) | (19,153) |
Available-for-sale securities, Total | $ (3,488) | $ (19,164) |
Available-for-sale securities, Number of securities | security | 85 | 110 |
Held-to-maturity securities, Fair value | ||
Held-to-maturity securities, Less than 12 months | $ 10,328 | $ 0 |
Held-to-maturity securities, 12 months or longer | 30,451 | 58,695 |
Held-to-maturity securities, Total | 40,779 | 58,695 |
Held-to-maturity securities, Unrealized losses | ||
Held-to-maturity securities, Less than 12 months | (11) | 0 |
Held-to-maturity securities, 12 months or longer | (305) | (1,845) |
Held-to-maturity securities, Total | $ (316) | $ (1,845) |
Held-to-maturity securities, Number of securities | security | 14 | 16 |
Investment Securities Investmen
Investment Securities Investments in Any One Issuer Exceeding Ten Percent of Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | ||
Investment securities available-for-sale at amortized cost | $ 966,900 | $ 1,018,774 |
Available-for-sale, fair value | 978,284 | $ 994,065 |
Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Investment securities available-for-sale at amortized cost | 584,280 | |
Available-for-sale, fair value | 583,673 | |
Credit Concentration Risk | Federal Home Loan Mortgage Corporation | ||
Concentration Risk [Line Items] | ||
Investment securities available-for-sale at amortized cost | 296,049 | |
Available-for-sale, fair value | 295,434 | |
Credit Concentration Risk | Federal Home Loan Bank | ||
Concentration Risk [Line Items] | ||
Investment securities available-for-sale at amortized cost | 89,167 | |
Available-for-sale, fair value | 90,111 | |
Credit Concentration Risk | Federal National Mortgage Association | ||
Concentration Risk [Line Items] | ||
Investment securities available-for-sale at amortized cost | 199,064 | |
Available-for-sale, fair value | $ 198,128 | |
Stockholders' Equity, Total | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.00% |
Investment Securities Other inv
Investment Securities Other investment disclosures (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Jan. 01, 2017 | [2] | ||
Schedule of Investments [Line Items] | |||||||
Weighted average remaining maturity available for sale | 7 years 8 months 12 days | 7 years 8 months 12 days | |||||
Available for sale securities callable before maturity | $ 239,000,000 | $ 217,000,000 | |||||
Weighted average remaining maturity held to maturity | 10.0 years | 11.0 years | |||||
Qualified affordable housing project investments | $ 65,500,000 | $ 54,400,000 | |||||
Affordable housing project investments, commitment | 27,800,000 | 23,000,000 | |||||
Affordable housing project impairment | 0 | 0 | |||||
Income Tax Expense | |||||||
Schedule of Investments [Line Items] | |||||||
Affordable housing project investments, amortization | 4,300,000 | 3,000,000 | $ 2,700,000 | ||||
Affordable housing tax credits and other tax benefits | $ 4,100,000 | $ 2,900,000 | $ 2,200,000 | ||||
Accumulated Other Comprehensive Income/ (Loss) | |||||||
Schedule of Investments [Line Items] | |||||||
Reclassification due to change in accounting principle | $ (334,000) | [1] | $ (1,535,000) | ||||
Retained Earnings | |||||||
Schedule of Investments [Line Items] | |||||||
Reclassification due to change in accounting principle | 334,000 | [1] | $ 1,535,000 | ||||
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Income/ (Loss) | |||||||
Schedule of Investments [Line Items] | |||||||
Reclassification due to change in accounting principle | (339,000) | ||||||
Accounting Standards Update 2016-01 | Retained Earnings | |||||||
Schedule of Investments [Line Items] | |||||||
Reclassification due to change in accounting principle | $ 339,000 | ||||||
[1] | Reclassification due to the adoption of ASU 2016-01 and ASU 2017-12. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies.” | ||||||
[2] | Reclassification due to the adoption of ASU 2018-02. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies.” |
Loan Portfolio and Credit Qua_2
Loan Portfolio and Credit Quality Loans by Portfolio Segment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 6,976,704,000 | $ 6,893,158,000 |
Finite-lived Intangible Assets Acquired | 0 | |
Mortgage Servicing Rights | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finite-lived Intangible Assets Acquired | 800,000 | |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,141,961,000 | 1,074,708,000 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 694,034,000 | 623,037,000 |
Commercial tax-exempt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 447,927,000 | 451,671,000 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,551,274,000 | 2,395,692,000 |
Construction and land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 225,983,000 | 240,306,000 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,839,155,000 | 2,948,973,000 |
Proceeds from sale of portfolio loans | 190,700,000 | |
Gain on sale of loans | 1,200,000 | |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 83,657,000 | 90,421,000 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 134,674,000 | $ 143,058,000 |
Loan Portfolio and Credit Qua_3
Loan Portfolio and Credit Quality Nonaccrual Loans by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual receivables | $ 16,103 | $ 14,057 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual receivables | 582 | 2,554 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual receivables | 582 | 2,554 |
Commercial tax-exempt | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual receivables | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual receivables | 0 | 546 |
Construction and land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual receivables | 0 | 0 |
Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual receivables | 13,993 | 7,914 |
Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual receivables | 1,525 | 3,031 |
Consumer and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonaccrual receivables | $ 3 | $ 12 |
Loan Portfolio and Credit Qua_4
Loan Portfolio and Credit Quality Loans by Past Due Status (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | $ 25,945 | $ 22,299 |
Nonaccrual receivables | 16,103 | 14,057 |
Current Accruing Loans | 6,934,656 | 6,856,802 |
Total loans | 6,976,704 | 6,893,158 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 828 | 9,794 |
Nonaccrual receivables | 582 | 2,554 |
Current Accruing Loans | 692,624 | 610,689 |
Total loans | 694,034 | 623,037 |
Commercial tax-exempt | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Nonaccrual receivables | 0 | 0 |
Current Accruing Loans | 447,927 | 451,671 |
Total loans | 447,927 | 451,671 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 1,420 | 0 |
Nonaccrual receivables | 0 | 546 |
Current Accruing Loans | 2,549,854 | 2,395,146 |
Total loans | 2,551,274 | 2,395,692 |
Construction and land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Nonaccrual receivables | 0 | 0 |
Current Accruing Loans | 225,983 | 240,306 |
Total loans | 225,983 | 240,306 |
Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 20,171 | 6,843 |
Nonaccrual receivables | 13,993 | 7,914 |
Current Accruing Loans | 2,804,991 | 2,934,216 |
Total loans | 2,839,155 | 2,948,973 |
Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 369 | 602 |
Nonaccrual receivables | 1,525 | 3,031 |
Current Accruing Loans | 81,763 | 86,788 |
Total loans | 83,657 | 90,421 |
Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 3,157 | 5,060 |
Nonaccrual receivables | 3 | 12 |
Current Accruing Loans | 131,514 | 137,986 |
Total loans | 134,674 | 143,058 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 22,758 | 16,540 |
30-59 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 828 | 9,794 |
30-59 Days Past Due | Commercial tax-exempt | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
30-59 Days Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 1,420 | 0 |
30-59 Days Past Due | Construction and land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
30-59 Days Past Due | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 19,133 | 6,477 |
30-59 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 369 | 252 |
30-59 Days Past Due | Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 1,008 | 17 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 3,187 | 5,759 |
60-89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
60-89 Days Past Due | Commercial tax-exempt | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
60-89 Days Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
60-89 Days Past Due | Construction and land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
60-89 Days Past Due | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 1,038 | 366 |
60-89 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 0 | 350 |
60-89 Days Past Due | Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Past Due | 2,149 | 5,043 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 9,814 | 3,626 |
Current | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 0 | 979 |
Current | Commercial tax-exempt | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 0 | 0 |
Current | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 0 | 0 |
Current | Construction and land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 0 | 0 |
Current | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 9,593 | 2,639 |
Current | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 220 | 0 |
Current | Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 1 | 8 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 1,148 | 768 |
30-89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 241 | 0 |
30-89 Days Past Due | Commercial tax-exempt | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 0 | 0 |
30-89 Days Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 0 | 0 |
30-89 Days Past Due | Construction and land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 0 | 0 |
30-89 Days Past Due | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 759 | 716 |
30-89 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 148 | 48 |
30-89 Days Past Due | Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 0 | 4 |
90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 5,141 | 9,663 |
90 Days or Greater Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 341 | 1,575 |
90 Days or Greater Past Due | Commercial tax-exempt | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 0 | 0 |
90 Days or Greater Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 0 | 546 |
90 Days or Greater Past Due | Construction and land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 0 | 0 |
90 Days or Greater Past Due | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 3,641 | 4,559 |
90 Days or Greater Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | 1,157 | 2,983 |
90 Days or Greater Past Due | Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual receivables | $ 2 | $ 0 |
Loan Portfolio and Credit Qua_5
Loan Portfolio and Credit Quality Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 6,976,704 | $ 6,893,158 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 694,034 | 623,037 |
Commercial tax-exempt | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 447,927 | 451,671 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,551,274 | 2,395,692 |
Construction and land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 225,983 | 240,306 |
Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,839,155 | 2,948,973 |
Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 83,657 | 90,421 |
Consumer and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 134,674 | 143,058 |
Performing Financial Instruments [Member] | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,850,653 | 6,746,478 |
Performing Financial Instruments [Member] | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 52,026 | 78,528 |
Performing Financial Instruments [Member] | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 57,922 | 54,095 |
Performing Financial Instruments [Member] | Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 656,364 | 581,278 |
Performing Financial Instruments [Member] | Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 12,101 | 16,213 |
Performing Financial Instruments [Member] | Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 24,987 | 22,992 |
Performing Financial Instruments [Member] | Commercial tax-exempt | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 436,721 | 444,835 |
Performing Financial Instruments [Member] | Commercial tax-exempt | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,154 | 2,785 |
Performing Financial Instruments [Member] | Commercial tax-exempt | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,052 | 4,051 |
Performing Financial Instruments [Member] | Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,495,702 | 2,314,223 |
Performing Financial Instruments [Member] | Commercial real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 32,014 | 53,871 |
Performing Financial Instruments [Member] | Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 23,558 | 27,052 |
Performing Financial Instruments [Member] | Construction and land | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 225,526 | 234,647 |
Performing Financial Instruments [Member] | Construction and land | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 457 | 5,659 |
Performing Financial Instruments [Member] | Construction and land | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Performing Financial Instruments [Member] | Residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,820,909 | 2,941,059 |
Performing Financial Instruments [Member] | Residential | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Performing Financial Instruments [Member] | Residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,253 | 0 |
Performing Financial Instruments [Member] | Home equity | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 81,060 | 87,390 |
Performing Financial Instruments [Member] | Home equity | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Performing Financial Instruments [Member] | Home equity | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,072 | 0 |
Performing Financial Instruments [Member] | Consumer and other | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 134,371 | 143,046 |
Performing Financial Instruments [Member] | Consumer and other | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 300 | 0 |
Performing Financial Instruments [Member] | Consumer and other | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Nonperforming Financial Instruments [Member] | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 16,103 | 14,057 |
Nonperforming Financial Instruments [Member] | Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 582 | 2,554 |
Nonperforming Financial Instruments [Member] | Commercial tax-exempt | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Nonperforming Financial Instruments [Member] | Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 546 |
Nonperforming Financial Instruments [Member] | Construction and land | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Nonperforming Financial Instruments [Member] | Residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 13,993 | 7,914 |
Nonperforming Financial Instruments [Member] | Home equity | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,525 | 3,031 |
Nonperforming Financial Instruments [Member] | Consumer and other | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 3 | $ 12 |
Loan Portfolio and Credit Qua_6
Loan Portfolio and Credit Quality Impaired Loans With and Without Related Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Recorded Investment: | |||
Recorded investment, With no related allowance recorded | $ 18,122 | $ 11,374 | |
Recorded investment, With an allowance recorded | 1,065 | 4,269 | |
Recorded investment, Total | 19,187 | 15,643 | |
Unpaid principal balance: | |||
Unpaid principal balance, With no related allowance recorded | 19,027 | 13,051 | |
Unpaid principal balance, With an allowance recorded | 1,065 | 4,471 | |
Unpaid principal balance, Total | 20,092 | 17,522 | |
Related Allowance | 235 | 1,235 | |
Average Recorded Investment: | |||
Average recorded investment, With no related allowance recorded | 17,012 | 14,345 | |
Average recorded investment, With an allowance recorded | 2,411 | 6,472 | |
Average recorded investment, Total | 19,423 | 20,817 | $ 24,962 |
Interest Income Recognized while Impaired: | |||
Interest income recognized while impaired, With no related allowance recorded | 1,201 | 2,061 | |
Interest income recognized while impaired, With an allowance recorded | 60 | 756 | |
Interest income recognized while impaired, Total | 1,261 | 2,817 | 2,452 |
Commercial and industrial | |||
Recorded Investment: | |||
Recorded investment, With no related allowance recorded | 470 | 1,435 | |
Recorded investment, With an allowance recorded | 254 | 1,770 | |
Recorded investment, Total | 724 | 3,205 | |
Unpaid principal balance: | |||
Unpaid principal balance, With no related allowance recorded | 553 | 2,397 | |
Unpaid principal balance, With an allowance recorded | 254 | 1,972 | |
Unpaid principal balance, Total | 807 | 4,369 | |
Related Allowance | 146 | 598 | |
Average Recorded Investment: | |||
Average recorded investment, With no related allowance recorded | 1,062 | 1,614 | |
Average recorded investment, With an allowance recorded | 736 | 631 | |
Average recorded investment, Total | 1,798 | 2,245 | 1,750 |
Interest Income Recognized while Impaired: | |||
Interest income recognized while impaired, With no related allowance recorded | 268 | 69 | |
Interest income recognized while impaired, With an allowance recorded | 33 | 15 | |
Interest income recognized while impaired, Total | 301 | 84 | 54 |
Commercial tax-exempt | |||
Recorded Investment: | |||
Recorded investment, With no related allowance recorded | 0 | 0 | |
Recorded investment, With an allowance recorded | 0 | 0 | |
Recorded investment, Total | 0 | 0 | |
Unpaid principal balance: | |||
Unpaid principal balance, With no related allowance recorded | 0 | 0 | |
Unpaid principal balance, With an allowance recorded | 0 | 0 | |
Unpaid principal balance, Total | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment: | |||
Average recorded investment, With no related allowance recorded | 0 | 0 | |
Average recorded investment, With an allowance recorded | 0 | 0 | |
Average recorded investment, Total | 0 | 0 | 1,001 |
Interest Income Recognized while Impaired: | |||
Interest income recognized while impaired, With no related allowance recorded | 0 | 0 | |
Interest income recognized while impaired, With an allowance recorded | 0 | 0 | |
Interest income recognized while impaired, Total | 0 | 0 | 80 |
Commercial real estate | |||
Recorded Investment: | |||
Recorded investment, With no related allowance recorded | 733 | 546 | |
Recorded investment, With an allowance recorded | 0 | 0 | |
Recorded investment, Total | 733 | 546 | |
Unpaid principal balance: | |||
Unpaid principal balance, With no related allowance recorded | 733 | 900 | |
Unpaid principal balance, With an allowance recorded | 0 | 0 | |
Unpaid principal balance, Total | 733 | 900 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment: | |||
Average recorded investment, With no related allowance recorded | 155 | 2,002 | |
Average recorded investment, With an allowance recorded | 0 | 4,087 | |
Average recorded investment, Total | 155 | 6,089 | 10,078 |
Interest Income Recognized while Impaired: | |||
Interest income recognized while impaired, With no related allowance recorded | 262 | 1,544 | |
Interest income recognized while impaired, With an allowance recorded | 0 | 705 | |
Interest income recognized while impaired, Total | 262 | 2,249 | 1,868 |
Construction and land | |||
Recorded Investment: | |||
Recorded investment, With no related allowance recorded | 0 | 0 | |
Recorded investment, With an allowance recorded | 0 | 0 | |
Recorded investment, Total | 0 | 0 | |
Unpaid principal balance: | |||
Unpaid principal balance, With no related allowance recorded | 0 | 0 | |
Unpaid principal balance, With an allowance recorded | 0 | 0 | |
Unpaid principal balance, Total | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment: | |||
Average recorded investment, With no related allowance recorded | 0 | 50 | |
Average recorded investment, With an allowance recorded | 0 | 0 | |
Average recorded investment, Total | 0 | 50 | 172 |
Interest Income Recognized while Impaired: | |||
Interest income recognized while impaired, With no related allowance recorded | 0 | 16 | |
Interest income recognized while impaired, With an allowance recorded | 0 | 0 | |
Interest income recognized while impaired, Total | 0 | 16 | 0 |
Residential | |||
Recorded Investment: | |||
Recorded investment, With no related allowance recorded | 15,362 | 8,403 | |
Recorded investment, With an allowance recorded | 538 | 780 | |
Recorded investment, Total | 15,900 | 9,183 | |
Unpaid principal balance: | |||
Unpaid principal balance, With no related allowance recorded | 15,622 | 8,764 | |
Unpaid principal balance, With an allowance recorded | 538 | 780 | |
Unpaid principal balance, Total | 16,160 | 9,544 | |
Related Allowance | 67 | 75 | |
Average Recorded Investment: | |||
Average recorded investment, With no related allowance recorded | 13,700 | 9,638 | |
Average recorded investment, With an allowance recorded | 1,130 | 785 | |
Average recorded investment, Total | 14,830 | 10,423 | 11,502 |
Interest Income Recognized while Impaired: | |||
Interest income recognized while impaired, With no related allowance recorded | 636 | 408 | |
Interest income recognized while impaired, With an allowance recorded | 23 | 22 | |
Interest income recognized while impaired, Total | 659 | 430 | 449 |
Home equity | |||
Recorded Investment: | |||
Recorded investment, With no related allowance recorded | 1,557 | 990 | |
Recorded investment, With an allowance recorded | 273 | 1,719 | |
Recorded investment, Total | 1,830 | 2,709 | |
Unpaid principal balance: | |||
Unpaid principal balance, With no related allowance recorded | 2,119 | 990 | |
Unpaid principal balance, With an allowance recorded | 273 | 1,719 | |
Unpaid principal balance, Total | 2,392 | 2,709 | |
Related Allowance | 22 | 562 | |
Average Recorded Investment: | |||
Average recorded investment, With no related allowance recorded | 2,095 | 1,041 | |
Average recorded investment, With an allowance recorded | 545 | 959 | |
Average recorded investment, Total | 2,640 | 2,000 | 449 |
Interest Income Recognized while Impaired: | |||
Interest income recognized while impaired, With no related allowance recorded | 35 | 24 | |
Interest income recognized while impaired, With an allowance recorded | 4 | 11 | |
Interest income recognized while impaired, Total | 39 | 35 | 1 |
Consumer and other | |||
Recorded Investment: | |||
Recorded investment, With no related allowance recorded | 0 | 0 | |
Recorded investment, With an allowance recorded | 0 | 0 | |
Recorded investment, Total | 0 | 0 | |
Unpaid principal balance: | |||
Unpaid principal balance, With no related allowance recorded | 0 | 0 | |
Unpaid principal balance, With an allowance recorded | 0 | 0 | |
Unpaid principal balance, Total | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment: | |||
Average recorded investment, With no related allowance recorded | 0 | 0 | |
Average recorded investment, With an allowance recorded | 0 | 10 | |
Average recorded investment, Total | 0 | 10 | 10 |
Interest Income Recognized while Impaired: | |||
Interest income recognized while impaired, With no related allowance recorded | 0 | 0 | |
Interest income recognized while impaired, With an allowance recorded | 0 | 3 | |
Interest income recognized while impaired, Total | $ 0 | $ 3 | $ 0 |
Loan Portfolio and Credit Qua_7
Loan Portfolio and Credit Quality Troubled Debt Restructured Loans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 10 | 5 |
Restructured Year to Date, Pre-modification recorded investment | $ 8,511 | $ 3,424 |
Restructured Year to Date, Post-modification recorded investment | $ 8,564 | $ 3,459 |
TDRs that defaulted that were restructured in prior twelve months, Number of loans | loan | 1 | 1 |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 270 | $ 150 |
Extension of Term | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 3 | 2 |
Restructured Year to Date, Post-modification recorded investment | $ 1,185 | $ 250 |
Temporary Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 3 | 2 |
Restructured Year to Date, Post-modification recorded investment | $ 3,510 | $ 2,210 |
Payment Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 4 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 3,869 | $ 0 |
Combination of Concessions | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 1 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 999 |
Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 2 | 3 |
Restructured Year to Date, Pre-modification recorded investment | $ 449 | $ 1,249 |
Restructured Year to Date, Post-modification recorded investment | $ 449 | $ 1,249 |
TDRs that defaulted that were restructured in prior twelve months, Number of loans | loan | 1 | 1 |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 270 | $ 150 |
Commercial and industrial | Extension of Term | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 2 | 2 |
Restructured Year to Date, Post-modification recorded investment | $ 449 | $ 250 |
Commercial and industrial | Temporary Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Commercial and industrial | Payment Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Commercial and industrial | Combination of Concessions | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 1 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 999 |
Commercial tax-exempt | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Pre-modification recorded investment | $ 0 | $ 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
TDRs that defaulted that were restructured in prior twelve months, Number of loans | loan | 0 | 0 |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 |
Commercial tax-exempt | Extension of Term | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Commercial tax-exempt | Temporary Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Commercial tax-exempt | Payment Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Commercial tax-exempt | Combination of Concessions | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 1 | 0 |
Restructured Year to Date, Pre-modification recorded investment | $ 736 | $ 0 |
Restructured Year to Date, Post-modification recorded investment | $ 736 | $ 0 |
TDRs that defaulted that were restructured in prior twelve months, Number of loans | loan | 0 | 0 |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 |
Commercial real estate | Extension of Term | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 1 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 736 | $ 0 |
Commercial real estate | Temporary Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Commercial real estate | Payment Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Commercial real estate | Combination of Concessions | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Construction and land | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Pre-modification recorded investment | $ 0 | $ 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
TDRs that defaulted that were restructured in prior twelve months, Number of loans | loan | 0 | 0 |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 |
Construction and land | Extension of Term | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Construction and land | Temporary Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Construction and land | Payment Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Construction and land | Combination of Concessions | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Residential | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 5 | 2 |
Restructured Year to Date, Pre-modification recorded investment | $ 6,801 | $ 2,175 |
Restructured Year to Date, Post-modification recorded investment | $ 6,845 | $ 2,210 |
TDRs that defaulted that were restructured in prior twelve months, Number of loans | loan | 0 | 0 |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 |
Residential | Extension of Term | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Residential | Temporary Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 2 | 2 |
Restructured Year to Date, Post-modification recorded investment | $ 3,227 | $ 2,210 |
Residential | Payment Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 3 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 3,618 | $ 0 |
Residential | Combination of Concessions | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 2 | 0 |
Restructured Year to Date, Pre-modification recorded investment | $ 525 | $ 0 |
Restructured Year to Date, Post-modification recorded investment | $ 534 | $ 0 |
TDRs that defaulted that were restructured in prior twelve months, Number of loans | loan | 0 | 0 |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 |
Home equity | Extension of Term | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Home equity | Temporary Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 1 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 283 | $ 0 |
Home equity | Payment Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 1 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 251 | $ 0 |
Home equity | Combination of Concessions | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Consumer and other | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Pre-modification recorded investment | $ 0 | $ 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
TDRs that defaulted that were restructured in prior twelve months, Number of loans | loan | 0 | 0 |
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 |
Consumer and other | Extension of Term | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Consumer and other | Temporary Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Consumer and other | Payment Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Consumer and other | Combination of Concessions | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured Year to Date, Number of Loans | loan | 0 | 0 |
Restructured Year to Date, Post-modification recorded investment | $ 0 | $ 0 |
Loan Portfolio and Credit Qua_8
Loan Portfolio and Credit Quality Loan Participation Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loan participations serviced for others | $ 230,014 | $ 127,783 |
Loans serviced for others | 204,696 | 33,168 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loan participations serviced for others | 14,533 | 8,024 |
Commercial tax-exempt | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loan participations serviced for others | 18,101 | 19,105 |
Commercial real estate | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loan participations serviced for others | 121,929 | 60,688 |
Construction and land | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loan participations serviced for others | 75,451 | 39,966 |
Residential | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans serviced for others | $ 204,696 | $ 33,168 |
Loan Portfolio and Credit Qua_9
Loan Portfolio and Credit Quality Loans Text Disclosures (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans 90 days past due and still accruing | $ 0 | $ 0 |
Loans pledged in agreement with Federal Home Loan Bank | 2,500,000,000 | 2,600,000,000 |
Loans pledged as collateral at Federal Reserve Bank | 395,300,000 | 540,000,000 |
Loans classified as TDRs | 12,600,000 | 8,000,000 |
Commitment to lend | 0 | 0 |
Deferred loan origination (fees)/costs, net | 8,100,000 | 8,500,000 |
Performing Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans classified as TDRs | $ 7,100,000 | $ 3,800,000 |
Allowance for Loan Losses Allow
Allowance for Loan Losses Allowance - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||||
Allowance for loan losses | $ 71,982 | $ 75,312 | $ 74,742 | $ 78,077 |
Allowance for Loan Losses All_2
Allowance for Loan Losses Allowance Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Total allowance for loan losses, beginning of year | $ 75,312 | $ 74,742 | $ 75,312 | $ 74,742 | $ 78,077 | ||||||
Loans charged-off | (1,229) | (899) | (863) | ||||||||
Recoveries on loans previously charged-off | 1,463 | 3,667 | 5,197 | ||||||||
Provision/(credit) for loan losses | $ (3,668) | $ 167 | $ 1,363 | (1,426) | $ 93 | $ (949) | $ 453 | (1,795) | (3,564) | (2,198) | (7,669) |
Total allowance for loan losses, end of year | 71,982 | 75,312 | 71,982 | 75,312 | 74,742 | ||||||
Commercial and industrial | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Total allowance for loan losses, beginning of year | 15,912 | 11,735 | 15,912 | 11,735 | 12,751 | ||||||
Loans charged-off | (645) | (709) | (393) | ||||||||
Recoveries on loans previously charged-off | 891 | 680 | 472 | ||||||||
Provision/(credit) for loan losses | (94) | 4,206 | (1,095) | ||||||||
Total allowance for loan losses, end of year | 16,064 | 15,912 | 16,064 | 15,912 | 11,735 | ||||||
Commercial real estate | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Total allowance for loan losses, beginning of year | 41,934 | 46,820 | 41,934 | 46,820 | 50,412 | ||||||
Loans charged-off | 0 | (135) | 0 | ||||||||
Recoveries on loans previously charged-off | 429 | 2,389 | 4,621 | ||||||||
Provision/(credit) for loan losses | (1,598) | (7,140) | (8,213) | ||||||||
Total allowance for loan losses, end of year | 40,765 | 41,934 | 40,765 | 41,934 | 46,820 | ||||||
Construction and land | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Total allowance for loan losses, beginning of year | 6,022 | 4,949 | 6,022 | 4,949 | 3,039 | ||||||
Loans charged-off | 0 | 0 | 0 | ||||||||
Recoveries on loans previously charged-off | 0 | 0 | 25 | ||||||||
Provision/(credit) for loan losses | (903) | 1,073 | 1,885 | ||||||||
Total allowance for loan losses, end of year | 5,119 | 6,022 | 5,119 | 6,022 | 4,949 | ||||||
Residential | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Total allowance for loan losses, beginning of year | 10,026 | 9,773 | 10,026 | 9,773 | 10,449 | ||||||
Loans charged-off | 0 | (16) | (58) | ||||||||
Recoveries on loans previously charged-off | 100 | 429 | 47 | ||||||||
Provision/(credit) for loan losses | (1,269) | (160) | (665) | ||||||||
Total allowance for loan losses, end of year | 8,857 | 10,026 | 8,857 | 10,026 | 9,773 | ||||||
Home equity | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Total allowance for loan losses, beginning of year | 1,284 | 835 | 1,284 | 835 | 1,035 | ||||||
Loans charged-off | (562) | 0 | 0 | ||||||||
Recoveries on loans previously charged-off | 10 | 1 | 0 | ||||||||
Provision/(credit) for loan losses | 46 | 448 | (200) | ||||||||
Total allowance for loan losses, end of year | 778 | 1,284 | 778 | 1,284 | 835 | ||||||
Consumer and other | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Total allowance for loan losses, beginning of year | $ 134 | $ 630 | 134 | 630 | 391 | ||||||
Loans charged-off | (22) | (39) | (412) | ||||||||
Recoveries on loans previously charged-off | 33 | 168 | 32 | ||||||||
Provision/(credit) for loan losses | 254 | (625) | 619 | ||||||||
Total allowance for loan losses, end of year | $ 399 | $ 134 | $ 399 | $ 134 | $ 630 |
Allowance for Loan Losses All_3
Allowance for Loan Losses Allowance by Impairment Analysis Method (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually Evaluated for Impairment, Recorded Investment | $ 19,187 | $ 15,643 | ||
Collectively Evaluated for Impairment, Recorded Investment | 6,957,517 | 6,877,515 | ||
Total loans | 6,976,704 | 6,893,158 | ||
Individually Evaluated for Impairment, Allowance for loan losses | 235 | 1,235 | ||
Collectively Evaluated for Impairment, Allowance for loan losses | 71,747 | 74,077 | ||
Total allowance for loan losses | 71,982 | 75,312 | $ 74,742 | $ 78,077 |
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually Evaluated for Impairment, Recorded Investment | 724 | 3,205 | ||
Collectively Evaluated for Impairment, Recorded Investment | 1,141,237 | 1,071,503 | ||
Total loans | 1,141,961 | 1,074,708 | ||
Individually Evaluated for Impairment, Allowance for loan losses | 146 | 598 | ||
Collectively Evaluated for Impairment, Allowance for loan losses | 15,918 | 15,314 | ||
Total allowance for loan losses | 16,064 | 15,912 | 11,735 | 12,751 |
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually Evaluated for Impairment, Recorded Investment | 733 | 546 | ||
Collectively Evaluated for Impairment, Recorded Investment | 2,550,541 | 2,395,146 | ||
Total loans | 2,551,274 | 2,395,692 | ||
Individually Evaluated for Impairment, Allowance for loan losses | 0 | 0 | ||
Collectively Evaluated for Impairment, Allowance for loan losses | 40,765 | 41,934 | ||
Total allowance for loan losses | 40,765 | 41,934 | 46,820 | 50,412 |
Construction and land | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually Evaluated for Impairment, Recorded Investment | 0 | 0 | ||
Collectively Evaluated for Impairment, Recorded Investment | 225,983 | 240,306 | ||
Total loans | 225,983 | 240,306 | ||
Individually Evaluated for Impairment, Allowance for loan losses | 0 | 0 | ||
Collectively Evaluated for Impairment, Allowance for loan losses | 5,119 | 6,022 | ||
Total allowance for loan losses | 5,119 | 6,022 | 4,949 | 3,039 |
Residential | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually Evaluated for Impairment, Recorded Investment | 15,900 | 9,183 | ||
Collectively Evaluated for Impairment, Recorded Investment | 2,823,255 | 2,939,790 | ||
Total loans | 2,839,155 | 2,948,973 | ||
Individually Evaluated for Impairment, Allowance for loan losses | 67 | 75 | ||
Collectively Evaluated for Impairment, Allowance for loan losses | 8,790 | 9,951 | ||
Total allowance for loan losses | 8,857 | 10,026 | 9,773 | 10,449 |
Home equity | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually Evaluated for Impairment, Recorded Investment | 1,830 | 2,709 | ||
Collectively Evaluated for Impairment, Recorded Investment | 81,827 | 87,712 | ||
Total loans | 83,657 | 90,421 | ||
Individually Evaluated for Impairment, Allowance for loan losses | 22 | 562 | ||
Collectively Evaluated for Impairment, Allowance for loan losses | 756 | 722 | ||
Total allowance for loan losses | 778 | 1,284 | 835 | 1,035 |
Consumer and other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually Evaluated for Impairment, Recorded Investment | 0 | 0 | ||
Collectively Evaluated for Impairment, Recorded Investment | 134,674 | 143,058 | ||
Total loans | 134,674 | 143,058 | ||
Individually Evaluated for Impairment, Allowance for loan losses | 0 | 0 | ||
Collectively Evaluated for Impairment, Allowance for loan losses | 399 | 134 | ||
Total allowance for loan losses | $ 399 | $ 134 | $ 630 | $ 391 |
Allowance for Loan Losses All_4
Allowance for Loan Losses Allowance Text (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | $ 6,976,704,000 | $ 6,893,158,000 |
Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans | $ 0 | $ 0 |
Premises, Equipment, and Leas_2
Premises, Equipment, and Leases Components of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 114,775 | $ 105,569 |
Less: Accumulated depreciation | 70,248 | 60,157 |
Premises and equipment, net | 44,527 | 45,412 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 55,482 | 50,489 |
Furniture, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 56,134 | 51,921 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 3,159 | $ 3,159 |
Lease Cost (Details)
Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Property, Plant and Equipment [Abstract] | |
Operating lease cost | $ 19,004 |
Short-term lease cost | 52 |
Variable lease cost | 291 |
Less: Sublease income | (101) |
Total operating lease cost | 19,246 |
Operating cash flows from operating leases | 20,230 |
ROU assets obtained in exchange for new operating lease liabilities | $ 8,131 |
Weighted average remaining lease term for operating leases | 8 years 1 month 6 days |
Weighted-average discount rate for operating leases (percent) | 3.20% |
Operating Lease Maturities (Det
Operating Lease Maturities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 19,930 |
2021 | 19,799 |
2022 | 19,760 |
2023 | 18,972 |
2024 | 12,949 |
Thereafter | 44,182 |
Total future minimum lease payments | 135,592 |
Less: Amounts representing interest | (18,378) |
Present value of net future minimum lease payments | $ 117,214 |
Premises, Equipment, and Leas_3
Premises, Equipment, and Leases Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
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 future minimum lease payments | $ 135,227 |
Premises, Equipment, and Leas_4
Premises, Equipment, and Leases Text (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)lease | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Depreciation | $ 11,228 | $ 10,694 | $ 8,106 |
Rent expense | $ 21,300 | $ 21,400 | |
Number of real estate leases | lease | 41 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Initial lease term | 5 years | ||
Lease renewal term | 5 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Initial lease term | 15 years | ||
Lease renewal term | 10 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets Goodwill Text (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | |||
Goodwill | $ 57,607 | $ 57,607 | $ 75,598 |
Wealth Management and Trust | |||
Goodwill [Line Items] | |||
Goodwill | $ 57,607 | $ 57,607 | $ 57,607 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets Carrying Value of Goodwill Rollforward (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Beginning of Year | $ 75,598 |
Transfer to held for sale | (17,991) |
Goodwill, End of Year | 57,607 |
Holding Company and Eliminations | |
Goodwill [Roll Forward] | |
Goodwill, Beginning of Year | 17,991 |
Transfer to held for sale | (17,991) |
Goodwill, End of Year | 0 |
Wealth Management and Trust | |
Goodwill [Roll Forward] | |
Goodwill, Beginning of Year | 57,607 |
Transfer to held for sale | 0 |
Goodwill, End of Year | $ 57,607 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets Goodwill and Accumulated Impairment Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||
Goodwill prior to impairment | $ 176,578 | ||
Cumulative goodwill impairment | (118,971) | ||
Goodwill | 57,607 | $ 57,607 | $ 75,598 |
Goodwill acquired | 0 | 0 | |
Holding Company and Eliminations | |||
Goodwill [Line Items] | |||
Goodwill prior to impairment | 75,162 | ||
Cumulative goodwill impairment | (75,162) | ||
Goodwill | 0 | 0 | 17,991 |
Private Banking | |||
Goodwill [Line Items] | |||
Goodwill prior to impairment | 34,281 | ||
Cumulative goodwill impairment | (34,281) | ||
Goodwill | 0 | ||
Wealth Management and Trust | |||
Goodwill [Line Items] | |||
Goodwill prior to impairment | 67,135 | ||
Cumulative goodwill impairment | (9,528) | ||
Goodwill | $ 57,607 | $ 57,607 | $ 57,607 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets Gross and Net Carrying Amounts of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | $ 24,766 | $ 30,859 |
Accumulated Amortization | 14,414 | 18,632 |
Net | 10,352 | 12,227 |
Advisory Contracts | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 23,950 | 30,859 |
Accumulated Amortization | 14,376 | 18,632 |
Net | 9,574 | 12,227 |
Mortgage Servicing Rights | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 816 | 0 |
Accumulated Amortization | 38 | 0 |
Net | $ 778 | $ 0 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets Intangible Assets Text (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 0 | ||
Amortization of intangibles | $ 2,691,000 | $ 2,929,000 | $ 5,601,000 |
Remaining amortization period | 4 years 9 months 7 days | ||
Mortgage Servicing Rights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 800,000 |
Goodwill and Other Intangible_8
Goodwill and Other Intangible Assets Future Amortization Expense on Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2020 | $ 2,528 | |
2021 | 2,021 | |
2022 | 2,002 | |
2023 | 1,986 | |
2024 | 1,485 | |
Thereafter | 330 | |
Total | $ 10,352 | $ 12,227 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities Derivatives Fair Value and Balance Sheet Classification (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 36,099 | $ 22,444 |
Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 36,822 | 22,537 |
Interest rate swaps | Derivatives designated as hedging instruments: | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 0 | 553 |
Interest rate swaps | Derivatives designated as hedging instruments: | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 0 | 0 |
Interest rate swaps | Derivatives not designated as hedging instruments: | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 36,089 | 21,889 |
Interest rate swaps | Derivatives not designated as hedging instruments: | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 36,580 | 22,385 |
Risk participation agreements | Derivatives not designated as hedging instruments: | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 10 | 2 |
Risk participation agreements | Derivatives not designated as hedging instruments: | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 242 | $ 152 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities Effect of Derivative Instruments on Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | $ (46) | $ 990 |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | 508 | 907 |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives | (46) | 990 |
Interest rate swaps | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | $ 508 | $ 907 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Details) $ in Thousands | Dec. 31, 2019USD ($)derivativeContractsHeld | Dec. 31, 2018USD ($)derivativeContractsHeld |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivatives in a liability position | $ 35,700 | $ 2,200 |
Pledged securities | 40,000 | 0 |
Risk participation agreements - executed by other financial institutions | Derivatives not designated as hedging instruments: | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative notional amount | $ 58,800 | $ 59,800 |
Derivative number of instruments | derivativeContractsHeld | 7 | 7 |
Derivatives - interest rate swaps | Derivatives not designated as hedging instruments: | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative notional amount | $ 1,600,000 | $ 1,300,000 |
Derivative number of instruments | derivativeContractsHeld | 198 | 160 |
Risk participation agreements - executed by the Bank | Derivatives not designated as hedging instruments: | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative notional amount | $ 20,500 | $ 20,700 |
Derivative number of instruments | derivativeContractsHeld | 4 | 4 |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative notional amount | $ 100 | |
Derivative number of instruments | derivativeContractsHeld | 2 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities Cash Flow Hedges Text Description (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)swap | Dec. 31, 2017USD ($)swap | Dec. 31, 2013USD ($)swap | Dec. 31, 2018USD ($)swap | |
Derivative [Line Items] | ||||
Number of interest rate derivatives | swap | 0 | 1 | 3 | 4 |
Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative Asset, Notional Amount | $ 25,000,000 | |||
Derivative notional amount | $ 75,000,000 | |||
Derivatives designated as hedging instruments: | Bank $25m LIBOR Swap effective 3/1/14 | ||||
Derivative [Line Items] | ||||
Derivative notional amount | $ 25,000,000 | |||
Derivatives designated as hedging instruments: | Bank $25m LIBOR Swap 2013 effective 6/1/14 | ||||
Derivative [Line Items] | ||||
Derivative notional amount | $ 25,000,000 | |||
Minimum | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative term of contract | 5 years | |||
Derivative fixed interest rate | 1.68% | |||
Maximum | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative term of contract | 6 years | |||
Derivative fixed interest rate | 2.03% | |||
Weighted Average | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative fixed interest rate | 1.82% | |||
Bank $60m LIBOR Swap 2017 effective 3/22/17 | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative Asset, Notional Amount | $ 60,000,000 | |||
Derivative term of contract | 2 years 3 months | |||
Derivative fixed interest rate | 1.65% | |||
Derivative notional amount | $ 60,000,000 | |||
Bank $60m LIBOR Swap 2017 effective 3/22/17 | Bank | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative Asset, Notional Amount | $ 60,000,000 | |||
Derivative term of contract | 2 years 3 months | |||
Derivative, Inception Date | Mar. 22, 2017 | |||
Derivative fixed interest rate | 1.65% | |||
Objectives for Using Derivative Instruments | These interest rate swaps will effectively fix the Bank’s interest payments on $60 million in interest-related cash outflows attributable to changes in the LIBOR component of FHLB borrowing liabilities | |||
Bank $25m LIBOR Swap effective 8/1/13 | Bank | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative Asset, Notional Amount | $ 25,000,000 | |||
Derivative, Inception Date | Aug. 1, 2013 | |||
Objectives for Using Derivative Instruments | The interest rate swaps will effectively fix the Bank’s interest payments on $75 million of its LIBOR-indexed deposit liabilities | |||
Bank $25m LIBOR Swap effective 8/1/13 | Bank | Minimum | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative term of contract | 5 years | |||
Derivative fixed interest rate | 1.68% | |||
Bank $25m LIBOR Swap effective 8/1/13 | Bank | Maximum | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative term of contract | 6 years | |||
Derivative fixed interest rate | 2.03% | |||
Bank $25m LIBOR Swap effective 8/1/13 | Bank | Weighted Average | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative fixed interest rate | 1.82% | |||
Bank $25m LIBOR Swap 2013 effective 6/1/14 | Bank | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative Asset, Notional Amount | $ 25,000,000 | |||
Derivative, Inception Date | Jun. 1, 2014 | |||
Objectives for Using Derivative Instruments | The interest rate swaps will effectively fix the Bank’s interest payments on $75 million of its LIBOR-indexed deposit liabilities | |||
Bank $25m LIBOR Swap 2013 effective 6/1/14 | Bank | Minimum | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative term of contract | 5 years | |||
Derivative fixed interest rate | 1.68% | |||
Bank $25m LIBOR Swap 2013 effective 6/1/14 | Bank | Maximum | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative term of contract | 6 years | |||
Derivative fixed interest rate | 2.03% | |||
Bank $25m LIBOR Swap 2013 effective 6/1/14 | Bank | Weighted Average | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative fixed interest rate | 1.82% | |||
Bank $25m LIBOR Swap effective 3/1/14 | Bank | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative Asset, Notional Amount | $ 25,000,000 | |||
Derivative, Inception Date | Mar. 1, 2014 | |||
Objectives for Using Derivative Instruments | The interest rate swaps will effectively fix the Bank’s interest payments on $75 million of its LIBOR-indexed deposit liabilities | |||
Bank $25m LIBOR Swap effective 3/1/14 | Bank | Minimum | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative term of contract | 5 years | |||
Derivative fixed interest rate | 1.68% | |||
Bank $25m LIBOR Swap effective 3/1/14 | Bank | Maximum | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative term of contract | 6 years | |||
Derivative fixed interest rate | 2.03% | |||
Bank $25m LIBOR Swap effective 3/1/14 | Bank | Weighted Average | Derivatives designated as hedging instruments: | Derivatives - interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative fixed interest rate | 1.82% |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities Non-designated Hedges Text description (Details) - Derivatives not designated as hedging instruments: - derivativeContractsHeld | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives - interest rate swaps | ||
Derivative [Line Items] | ||
Derivative number of instruments | 198 | 160 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivative number of instruments | 2 | |
Risk participation agreements - executed by other financial institutions | ||
Derivative [Line Items] | ||
Derivative number of instruments | 7 | 7 |
Risk participation agreements - executed by the Bank | ||
Derivative [Line Items] | ||
Derivative number of instruments | 4 | 4 |
Derivatives and Hedging Activ_8
Derivatives and Hedging Activities Derivatives not designated as hedges, effect on statement of operations (Details) - Derivatives not designated as hedging instruments: - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss), Net, Recognized in Income on Derivatives for Years Ended December 31, | $ (76) | $ 40 | $ (497) |
Derivatives - interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss), Net, Recognized in Income on Derivatives for Years Ended December 31, | 6 | (118) | (851) |
Risk participation agreements | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss), Net, Recognized in Income on Derivatives for Years Ended December 31, | $ (82) | $ 158 | $ 354 |
Deposits Deposit Liabilities, T
Deposits Deposit Liabilities, Type (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Demand deposits (noninterest bearing) | $ 1,971,013 | $ 1,951,274 |
Savings and NOW | 646,200 | 700,520 |
Money market | 3,969,330 | 3,338,891 |
Certificates of deposit under $100,000 | 145,226 | 265,883 |
Certificates of deposit $100,000 or more to less than $250,000 (1) | 94,095 | 98,120 |
Certificates of deposit $250,000 or more | 415,612 | 426,482 |
Deposits | $ 7,241,476 | $ 6,781,170 |
Deposits Schedule of Maturities
Deposits Schedule of Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Time Deposits [Line Items] | ||
Less than 3 months remaining | $ 285,236 | $ 239,789 |
3 to 6 months remaining | 187,854 | 220,136 |
6 to 12 months remaining | 154,837 | 235,337 |
Total due within 1 year | 627,927 | 695,262 |
1 to 2 years remaining | 24,094 | 91,945 |
2 to 3 years remaining | 2,402 | 2,887 |
3 to 4 years remaining | 25 | 21 |
4 to 5 years remaining | 0 | 0 |
More than 5 years remaining | 485 | 370 |
Total | $ 654,933 | $ 790,485 |
Deposits Deposits Text Details
Deposits Deposits Text Details (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deposits Text Disclosures [Abstract] | |||
Interest Expense, Time Deposits, $100,000 or More | $ 8.6 | $ 5.5 | $ 3.1 |
Deposit Liabilities Reclassified as Loans Receivable | $ 1.3 | $ 1 |
Federal Funds Purchased and S_3
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term Debt [Line Items] | ||
Federal Funds Purchased | $ 0 | $ 250,000 |
Securities Sold under Agreements to Repurchase | 53,398 | 36,928 |
Federal Funds Purchased | ||
Short-term Debt [Line Items] | ||
Maximum outstanding at any month-end | 230,000 | 250,000 |
Average balance for the year | $ 87,901 | $ 36,722 |
Weighted average rate at end of year | 0.00% | 2.64% |
Weighted average rate paid for the year | 2.28% | 1.89% |
Securities Sold Under Agreements to Repurchase | ||
Short-term Debt [Line Items] | ||
Maximum outstanding at any month-end | $ 72,684 | $ 85,257 |
Average balance for the year | $ 57,358 | $ 65,370 |
Weighted average rate at end of year | 0.16% | 0.15% |
Weighted average rate paid for the year | 0.17% | 0.11% |
Federal Funds Purchased and S_4
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase Short Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Short Term Debt Details [Abstract] | ||
Debt Securities, Available-for-sale, Restricted | $ 262.6 | $ 193.7 |
Federal Funds Lines of Credit, Amount of Available Unused Funds | $ 500 | $ 465 |
Federal Home Loan Bank Borrow_3
Federal Home Loan Bank Borrowings (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | |
Within 1 year | $ 274,365 |
Over 1 to 2 years | 61,740 |
Over 2 to 3 years | 3,985 |
Over 3 to 4 years | 7,349 |
Over 4 to 5 years | 0 |
Over 5 years | 3,390 |
Total | $ 350,829 |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | |
Within 1 year | 2.43% |
Over 1 to 2 years | 2.19% |
Over 2 to 3 years | 1.93% |
Over 3 to 4 years | 3.24% |
Over 4 to 5 years | 0.00% |
Over 5 years | 0.18% |
Total | 2.38% |
Federal Home Loan Bank Borrow_4
Federal Home Loan Bank Borrowings FHLB Text (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal home loan bank advances collateral pledged | $ 2,500,000,000 | $ 2,600,000,000 |
Federal Home Loan Bank borrowings | 350,829,000 | 420,144,000 |
Federal home loan bank advances maximum amount available | 1,400,000,000 | 1,400,000,000 |
FHLB borrowings callable before maturity | 0 | 0 |
Stock in federal home loan bank | $ 24,300,000 | $ 35,200,000 |
Minimum | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal home loan bank advances collateral valuation percentage | 50.00% | |
Ownership percentage of outstanding advances | 3.00% | |
Maximum | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal home loan bank advances collateral valuation percentage | 76.00% | |
Ownership percentage of outstanding advances | 4.00% |
Junior Subordinated Debenture_2
Junior Subordinated Debentures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Junior subordinated debentures | $ 106,363 | $ 106,363 |
Boston Private Capital Trust II Junior Subordinated Debentures | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures | 103,093 | 103,093 |
Boston Private Capital Trust I Junior Subordinated Debentures | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures | $ 3,270 | $ 3,270 |
Junior Subordinated Debentures | ||
Debt Instrument [Line Items] | ||
Debt term (more than) | 5 years |
Junior Subordinated Debenture_3
Junior Subordinated Debentures Boston Private Capital Trust II Terms (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)payment | Dec. 31, 2018USD ($) | Dec. 30, 2010 | |
Debt Instrument [Line Items] | |||
Debt interest rate terms | provided, however, that the interest rate does not exceed the highest rate permitted by New York law, and may be modified by the U.S. law of general application | ||
Boston Private Capital Trust II Junior Subordinated Debentures | |||
Debt Instrument [Line Items] | |||
Debt face amount | $ 100,000,000 | ||
Frequency of periodic payment | quarterly | ||
Debt stated interest rate | 6.25% | ||
Description of variable rate basis | three-month LIBOR plus | ||
Debt basis spread on variable rate | 1.68% | ||
Debt effective interest rate | 3.64% | ||
Assets Held-in-trust | $ 3,100,000 | $ 3,100,000 | |
Maturity date | Dec. 30, 2035 | ||
Call feature | became redeemable after December 30, 2010 | ||
Option to defer, number of quarterly payments | payment | 20 | ||
Covenant compliance | At December 31, 2019 and 2018, the Company was in compliance with the above covenants. |
Junior Subordinated Debenture_4
Junior Subordinated Debentures Boston Private Capital Trust I Terms (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Debt interest rate terms | provided, however, that the interest rate does not exceed the highest rate permitted by New York law, and may be modified by the U.S. law of general application | |
Boston Private Capital Trust I Junior Subordinated Debentures | ||
Debt Instrument [Line Items] | ||
Debt face amount | $ 105,000,000 | |
Liquidation price per share | $ 50 | |
Frequency of periodic payment | quarterly | |
Debt interest rate terms | fixed | |
Debt effective interest rate | 4.875% | |
Maturity date | Oct. 1, 2034 | |
Assets Held-in-trust | $ 3,200,000 | $ 3,200,000 |
Noncontrolling Interests Compon
Noncontrolling Interests Components of Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable noncontrolling interests | $ 1,383 | $ 2,526 |
Noncontrolling interests | 0 | 0 |
DGHM | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable noncontrolling interests | $ 1,383 | $ 2,526 |
Noncontrolling Interests Redeem
Noncontrolling Interests Redeemable Noncontrolling Interests Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||||||||
Redeemable Noncontrolling Interests, Equity, Carrying Amount, Beginning of Period | $ 2,526 | $ 2,526 | |||||||||
Nonredeemable Noncontrolling Interest, Beginning of Period | 0 | 0 | |||||||||
Net income attributable to noncontrolling interests | $ 97 | $ 96 | $ 69 | 100 | $ 545 | $ 924 | $ 968 | $ 1,050 | 362 | $ 3,487 | $ 4,468 |
Redeemable Noncontrolling Interests, Equity, Carrying Amount, End of Period | 1,383 | 2,526 | 1,383 | 2,526 | |||||||
Nonredeemable Noncontrolling Interest, Beginning of Period | 0 | 0 | 0 | 0 | |||||||
Redeemable noncontrolling interests | |||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||||||||
Redeemable Noncontrolling Interests, Equity, Carrying Amount, Beginning of Period | 2,526 | 17,461 | 2,526 | 17,461 | 16,972 | ||||||
Net income attributable to noncontrolling interests | 362 | 2,630 | 3,354 | ||||||||
Distributions | (362) | (2,537) | (3,277) | ||||||||
Sales of ownership interests | (56) | (12,951) | 235 | ||||||||
Amortization of equity compensation | 46 | 478 | 413 | ||||||||
Adjustments to fair value | (1,133) | (2,555) | (236) | ||||||||
Redeemable Noncontrolling Interests, Equity, Carrying Amount, End of Period | 1,383 | 2,526 | 1,383 | 2,526 | 17,461 | ||||||
Noncontrolling Interests | |||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||||||||
Nonredeemable Noncontrolling Interest, Beginning of Period | $ 0 | $ 5,186 | 0 | 5,186 | 4,161 | ||||||
Net income attributable to noncontrolling interests | 0 | 857 | 1,114 | ||||||||
Distributions | 0 | (817) | (1,083) | ||||||||
Sales of ownership interests | 0 | (5,272) | 85 | ||||||||
Amortization of equity compensation | 0 | 161 | 935 | ||||||||
Adjustments to fair value | 0 | (115) | (26) | ||||||||
Nonredeemable Noncontrolling Interest, Beginning of Period | $ 0 | $ 0 | $ 0 | $ 0 | $ 5,186 |
Noncontrolling Interests Text D
Noncontrolling Interests Text Details (Details) - USD ($) $ in Thousands | Jun. 01, 2006 | Feb. 06, 2004 | Feb. 05, 2004 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Noncontrolling Interest [Line Items] | ||||||||||||||
Net income attributable to noncontrolling interests | $ 97 | $ 96 | $ 69 | $ 100 | $ 545 | $ 924 | $ 968 | $ 1,050 | $ 362 | $ 3,487 | $ 4,468 | |||
Redeemable noncontrolling interests | 1,383 | 2,526 | 1,383 | 2,526 | ||||||||||
Noncontrolling interests | 0 | 0 | 0 | 0 | ||||||||||
Anchor | ||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||
Ownership percentage by noncontrolling owners | 20.00% | |||||||||||||
DGHM | ||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||
Ownership percentage by noncontrolling owners | 20.00% | |||||||||||||
BOS | ||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||
Ownership percentage by noncontrolling owners | 30.00% | |||||||||||||
Anchor | ||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||
Vesting period | 5 years | |||||||||||||
Percent of equity interests available to put annually | 10.00% | |||||||||||||
Period after which percent of equity interests available to put up annually | 6 months | |||||||||||||
Percent of equity interest obligated to retain | 50.00% | |||||||||||||
BOS | ||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||
Vesting period | 7 years | |||||||||||||
Percent of equity interests available to put annually | 10.00% | |||||||||||||
Percent of total equity interests available to put up annually | 1.00% | |||||||||||||
Percent of equity interest obligated to retain | 50.00% | |||||||||||||
DGHM | ||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||
Redeemable noncontrolling interests | $ 1,383 | $ 2,526 | $ 1,383 | $ 2,526 | ||||||||||
Vesting period | 5 years | |||||||||||||
Percent of ownership interests allowed to be put up in one year | 40.00% | |||||||||||||
Period after which percent of equity interests available to put up annually | 6 months | |||||||||||||
Percent of equity interest obligated to retain | 50.00% | |||||||||||||
Anchor | ||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||
Percentage of voting interest acquired | 80.00% | |||||||||||||
BOS | ||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||
Percentage of voting interest acquired | 70.00% | |||||||||||||
DGHM | ||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||
Percentage of voting interest acquired | 80.00% | |||||||||||||
Minimum | DGHM | ||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||
Percent allowed to be purchased by company annually | 10.00% | |||||||||||||
Percent of total equity interests available to put up annually | 10.00% | |||||||||||||
Maximum | DGHM | ||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||
Percent allowed to be purchased by company annually | 20.00% | |||||||||||||
Percent of total equity interests available to put up annually | 20.00% |
Equity Preferred Stock (Details
Equity Preferred Stock (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 15, 2018USD ($)$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017shares | |
Class of Stock [Line Items] | ||||
Depository shares (in shares) | shares | 2,000,000 | 0 | 0 | 2,000,000 |
Depository shares interest in preferred stock | 0.025 | |||
Preferred stock dividend rate | 6.95% | 6.95% | ||
Preferred stock, par value (in dollars per shares) | $ 1 | $ 1 | ||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | ||
Stock redeemed | $ | $ 50,000 | |||
Depositary share aggregate liquidation preference | $ | $ 50,000 | |||
Depositary shares redemption percentage | 100.00% | |||
Depositary share redemption price her share (in dollars per share) | $ 25 | |||
Series D Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividend rate | 6.95% | |||
Preferred stock, par value (in dollars per shares) | $ 1 | |||
Preferred stock, liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | ||
Stock redeemed | $ | $ 50,000 | |||
Redemption price percentage | 100.00% | |||
Stock redeemed (in shares) | shares | 50,000 |
Equity Common Stock (Details)
Equity Common Stock (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Common stock, shares authorized (in shares) | 170,000,000 | 170,000,000 | |
Common stock, shares outstanding (in shares) | 83,265,674 | 83,655,651 | |
Common stock available for issuance | 86,734,326 | 86,344,349 | |
Share repurchase program, authorized amount | $ 20 | ||
Share repurchase period | 1 year | ||
Share repurchase program, remaining authorized repurchase amount | $ 12.8 |
Equity Warrants to Purchase Com
Equity Warrants to Purchase Common Stock (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | |||
Warrants outstanding (in shares) | 0 | 0 | 1,692,755 |
Equity Other Comprehensive Inco
Equity Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pre- tax | |||||||||||
Pre-tax, Net change | $ 35,106 | $ (12,115) | $ 8,994 | ||||||||
Tax effect | |||||||||||
Tax, Net change | 9,812 | (3,388) | 3,569 | ||||||||
Net of Tax | |||||||||||
Other comprehensive income/(loss), net of tax | 25,294 | (8,727) | 5,425 | ||||||||
Net income attributable to the Company, before tax | 102,619 | 117,921 | 86,787 | ||||||||
Income tax expense/(benefit) | $ 6,788 | $ 5,517 | $ 5,369 | $ 4,917 | $ 8,651 | $ 5,461 | $ 17,399 | $ 6,026 | 22,591 | 37,537 | 46,196 |
Net income attributable to the Company | $ 21,244 | $ 19,962 | $ 19,380 | $ 19,442 | $ 33,302 | $ 17,962 | $ 6,434 | $ 22,686 | 80,028 | 80,384 | 40,591 |
Total comprehensive income, pre-tax | 137,725 | 105,806 | 95,781 | ||||||||
Total comprehensive income, tax effect | 32,403 | 34,149 | 49,765 | ||||||||
Total comprehensive income attributable to the Company, net | 105,322 | 71,657 | 46,016 | ||||||||
Accumulated Other Comprehensive Income/ (Loss) | |||||||||||
Net of Tax | |||||||||||
Other comprehensive income/(loss), net of tax | 25,294 | (8,727) | 5,425 | ||||||||
Unrealized gain/(loss) on securities available-for-sale | |||||||||||
Pre- tax | |||||||||||
Pre-tax, Net gains/ (losses) arising during period | 36,092 | (13,205) | 7,782 | ||||||||
Pre-tax, Adjustment for realized gains/ (losses), net | 0 | (596) | 376 | ||||||||
Pre-tax, Net change | 36,092 | (12,609) | 7,406 | ||||||||
Tax effect | |||||||||||
Tax, Net gains/ (losses) arising during period | 10,101 | (3,702) | 3,063 | ||||||||
Tax, Adjustment for realized gains/ (losses), net | 0 | (170) | 154 | ||||||||
Tax, Net change | 10,101 | (3,532) | 2,909 | ||||||||
Net of Tax | |||||||||||
Net of tax, Net gains/ (losses) arising during period | 25,991 | (9,503) | 4,719 | ||||||||
Net of tax, Adjustment for realized gains/ (losses), net | 0 | (426) | 222 | ||||||||
Other comprehensive income/(loss), net of tax | 25,991 | (9,077) | 4,497 | ||||||||
Unrealized gain/ (loss) on cash flow hedges, after 2017-12 adoption | |||||||||||
Pre- tax | |||||||||||
Pre-tax, Net gains/ (losses) arising during period | (46) | ||||||||||
Pre-tax, Adjustment for realized gains/ (losses), net | (508) | ||||||||||
Pre-tax, Net change | (554) | ||||||||||
Tax effect | |||||||||||
Tax, Net gains/ (losses) arising during period | (15) | ||||||||||
Tax, Adjustment for realized gains/ (losses), net | (148) | ||||||||||
Tax, Net change | (163) | ||||||||||
Net of Tax | |||||||||||
Net of tax, Net gains/ (losses) arising during period | (31) | ||||||||||
Net of tax, Adjustment for realized gains/ (losses), net | (360) | ||||||||||
Other comprehensive income/(loss), net of tax | (391) | ||||||||||
Unrealized gain/ (loss) on cash flow hedges, before 2017-12 adoption | |||||||||||
Pre- tax | |||||||||||
Pre-tax, Net gains/ (losses) arising during period | 985 | 325 | |||||||||
Pre-tax, Adjustment for realized gains/ (losses), net | (907) | 1,179 | |||||||||
Pre-tax, Net change | 78 | 1,504 | |||||||||
Tax effect | |||||||||||
Tax, Net gains/ (losses) arising during period | 285 | 135 | |||||||||
Tax, Adjustment for realized gains/ (losses), net | (261) | 491 | |||||||||
Tax, Net change | 24 | 626 | |||||||||
Net of Tax | |||||||||||
Net of tax, Net gains/ (losses) arising during period | 700 | 190 | |||||||||
Net of tax, Adjustment for realized gains/ (losses), net | (646) | 688 | |||||||||
Other comprehensive income/(loss), net of tax | 54 | 878 | |||||||||
Unrealized gain/(loss) on other | |||||||||||
Pre- tax | |||||||||||
Pre-tax, Net gains/ (losses) arising during period | (432) | 416 | 84 | ||||||||
Pre-tax, Net change | (432) | 416 | 84 | ||||||||
Tax effect | |||||||||||
Tax, Net gains/ (losses) arising during period | (126) | 120 | 34 | ||||||||
Tax, Net change | (126) | 120 | 34 | ||||||||
Net of Tax | |||||||||||
Net of tax, Net gains/ (losses) arising during period | (306) | 296 | 50 | ||||||||
Other comprehensive income/(loss), net of tax | $ (306) | $ 296 | $ 50 |
Equity Change in OCI Recognized
Equity Change in OCI Recognized in Statement of Operations, Line Item (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gain on sale of investments, net | $ 0 | $ (613) | $ 376 | ||||||||
Interest expense deposits | 59,083 | 39,846 | 20,884 | ||||||||
Income tax expense/(benefit) | $ 6,788 | $ 5,517 | $ 5,369 | $ 4,917 | $ 8,651 | $ 5,461 | $ 17,399 | $ 6,026 | 22,591 | 37,537 | 46,196 |
Net income attributable to the Company | $ 21,244 | $ 19,962 | $ 19,380 | $ 19,442 | $ 33,302 | $ 17,962 | $ 6,434 | $ 22,686 | 80,028 | 80,384 | 40,591 |
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period, net of tax | 360 | 646 | (688) | ||||||||
Unrealized gain/(loss) on securities available-for-sale | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period, net of tax | 0 | (426) | 222 | ||||||||
Unrealized gain/(loss) on securities available-for-sale | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gain on sale of investments, net | 0 | (596) | 376 | ||||||||
Income tax expense/(benefit) | 0 | 170 | (154) | ||||||||
Net income attributable to the Company | 0 | (426) | 222 | ||||||||
Unrealized gain/ (loss) on cash flow hedges, before 2017-12 adoption | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period, net of tax | (688) | ||||||||||
Unrealized gain/ (loss) on cash flow hedges, before 2017-12 adoption | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense deposits | 907 | (1,179) | |||||||||
Income tax expense/(benefit) | (261) | 491 | |||||||||
Net income attributable to the Company | 646 | $ (688) | |||||||||
Unrealized gain/ (loss) on cash flow hedges, after 2017-12 adoption | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period, net of tax | 360 | $ 646 | |||||||||
Unrealized gain/ (loss) on cash flow hedges, after 2017-12 adoption | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense deposits | 508 | ||||||||||
Income tax expense/(benefit) | (148) | ||||||||||
Net income attributable to the Company | $ 360 |
Equity Accumulated Other Compre
Equity Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Jan. 01, 2017 | [2] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning Balance | $ 753,954 | $ 785,944 | $ 768,481 | ||||
Ending Balance | 819,018 | 753,954 | 785,944 | ||||
Accumulated Other Comprehensive Income/ (Loss) | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning Balance | (17,719) | (8,658) | (12,548) | ||||
Other comprehensive income/(loss) before reclassifications | 25,654 | (8,507) | 4,959 | ||||
Amounts reclassified from other comprehensive income/(loss) | (360) | (220) | 466 | ||||
Other comprehensive income/(loss), net | 25,294 | (8,727) | 5,425 | ||||
Reclassification due to change in accounting principle | $ (334) | [1] | $ (1,535) | ||||
Ending Balance | 7,575 | (17,719) | (8,658) | ||||
Unrealized gain/(loss) on securities available-for-sale | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning Balance | (17,556) | (8,140) | (11,194) | ||||
Other comprehensive income/(loss) before reclassifications | 25,991 | (9,503) | 4,719 | ||||
Amounts reclassified from other comprehensive income/(loss) | 0 | 426 | (222) | ||||
Other comprehensive income/(loss), net | 25,991 | (9,077) | 4,497 | ||||
Reclassification due to change in accounting principle | (339) | ||||||
Ending Balance | 8,435 | (17,556) | (8,140) | ||||
Unrealized gain/ (loss) on cash flow hedges, before 2017-12 adoption | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning Balance | 332 | (605) | |||||
Other comprehensive income/(loss) before reclassifications | 190 | ||||||
Amounts reclassified from other comprehensive income/(loss) | 688 | ||||||
Other comprehensive income/(loss), net | 878 | ||||||
Ending Balance | 332 | ||||||
Unrealized gain/ (loss) on cash flow hedges, after 2017-12 adoption | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning Balance | 391 | ||||||
Other comprehensive income/(loss) before reclassifications | (31) | 700 | |||||
Amounts reclassified from other comprehensive income/(loss) | (360) | (646) | |||||
Other comprehensive income/(loss), net | (391) | 54 | |||||
Reclassification due to change in accounting principle | 5 | ||||||
Ending Balance | 0 | 391 | |||||
Unrealized gain/(loss) on other | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning Balance | (554) | (850) | (749) | ||||
Other comprehensive income/(loss) before reclassifications | (306) | 296 | 50 | ||||
Amounts reclassified from other comprehensive income/(loss) | 0 | 0 | 0 | ||||
Other comprehensive income/(loss), net | (306) | 296 | 50 | ||||
Reclassification due to change in accounting principle | 0 | ||||||
Ending Balance | $ (860) | $ (554) | $ (850) | ||||
Accounting Standards Update 2017-12 | Unrealized gain/ (loss) on cash flow hedges, after 2017-12 adoption | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Reclassification due to change in accounting principle | 5 | ||||||
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Income/ (Loss) | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Reclassification due to change in accounting principle | (339) | ||||||
Accounting Standards Update 2016-01 | Unrealized gain/(loss) on securities available-for-sale | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Reclassification due to change in accounting principle | $ (339) | ||||||
[1] | Reclassification due to the adoption of ASU 2016-01 and ASU 2017-12. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies.” | ||||||
[2] | Reclassification due to the adoption of ASU 2018-02. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies.” |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic earnings per share - Numerator: | |||||||||||
Net income from continuing operations | $ 80,390,000 | $ 81,869,000 | $ 40,189,000 | ||||||||
Net income attributable to noncontrolling interests | $ 97,000 | $ 96,000 | $ 69,000 | $ 100,000 | $ 545,000 | $ 924,000 | $ 968,000 | $ 1,050,000 | 362,000 | 3,487,000 | 4,468,000 |
Net income from continuing operations attributable to the Company | 80,028,000 | 78,382,000 | 35,721,000 | ||||||||
Decrease/(increase) in noncontrolling interests’ redemption values | 1,143,000 | 2,303,000 | (1,412,000) | ||||||||
Dividends on preferred stock | 0 | (3,985,000) | (3,475,000) | ||||||||
Total adjustments to income attributable to common shareholders | 1,143,000 | (1,682,000) | (4,887,000) | ||||||||
Net income from continuing operations attributable to common shareholders, treasury stock method | 81,171,000 | 76,700,000 | 30,834,000 | ||||||||
Net income from discontinued operations | $ 306,000 | $ 0 | $ (2,000) | $ 1,698,000 | 0 | 2,002,000 | 4,870,000 | ||||
Net income attributable to common shareholders for earnings per share calculation | $ 81,171,000 | $ 78,702,000 | $ 35,704,000 | ||||||||
Basic earnings per share - Denominator: | |||||||||||
Weighted average basic common shares outstanding (in shares) | 83,430,740 | 83,596,685 | 82,430,633 | ||||||||
Per share data - Basic earnings per share from: | |||||||||||
From continuing operations: (in dollars per share) | $ 0.97 | $ 0.92 | $ 0.37 | ||||||||
From discontinued operations: (in dollars per share) | 0 | 0.02 | 0.06 | ||||||||
Total attributable to common shareholders: (in dollars per share) | $ 0.26 | $ 0.24 | $ 0.22 | $ 0.25 | $ 0.43 | $ 0.20 | $ 0.03 | $ 0.27 | $ 0.97 | $ 0.94 | $ 0.43 |
Diluted earnings per share - Numerator: | |||||||||||
Net income from continuing operations attributable to common shareholders, after assumed dilution | $ 81,171,000 | $ 76,700,000 | $ 30,834,000 | ||||||||
Net income from discontinued operations | $ 306,000 | $ 0 | $ (2,000) | $ 1,698,000 | 0 | 2,002,000 | 4,870,000 | ||||
Net income attributable to common shareholders for basic earnings per share calculation | $ 81,171,000 | $ 78,702,000 | $ 35,704,000 | ||||||||
Diluted Earnings Per Share, Denominator [Abstract] | |||||||||||
Weighted average basic common shares outstanding (in shares) | 83,430,740 | 83,596,685 | 82,430,633 | ||||||||
Dilutive effect of: | |||||||||||
Stock options, performance-based and time-based restricted stock, and performance-based and time-based restricted stock units, and other dilutive securities (in shares) | 490,052 | 1,002,764 | 1,313,953 | ||||||||
Warrants to purchase common stock (in shares) | 0 | 731,865 | 1,057,979 | ||||||||
Dilutive common shares (in shares) | 490,052 | 1,734,629 | 2,371,932 | ||||||||
Weighted average diluted common shares outstanding (in shares) | 83,920,792 | 85,331,314 | 84,802,565 | ||||||||
Per share data - Diluted earnings per share from: | |||||||||||
Continuing operations (in dollars per share) | $ 0.97 | $ 0.90 | $ 0.36 | ||||||||
Discontinued operations (in dollars per share) | 0 | 0.02 | 0.06 | ||||||||
Total attributable to common shareholders: (in dollars per share) | $ 0.26 | $ 0.24 | $ 0.22 | $ 0.25 | $ 0.42 | $ 0.20 | $ 0.03 | $ 0.27 | 0.97 | 0.92 | 0.42 |
Dividends per share declared and paid on common stock (in dollars per share) | $ 0.48 | $ 0.48 | $ 0.44 | ||||||||
Preferred stock dividend rate | 6.95% | 6.95% | |||||||||
Shares excluded due to anti-dilution (treasury stock method) (in shares) | 1,000 | 52,000 | 1,000 | ||||||||
Shares excluded due to exercise price exceeding the average market price of common shares during the period (in shares) | 853,000 | 209,000 | 67,000 | ||||||||
Holding Company and Eliminations | |||||||||||
Basic earnings per share - Numerator: | |||||||||||
Net income from continuing operations | $ (4,051,000) | $ 4,952,000 | $ (15,663,000) | ||||||||
Net income attributable to noncontrolling interests | 362,000 | 3,487,000 | 4,468,000 | ||||||||
Net income from discontinued operations | 0 | 2,002,000 | 4,870,000 | ||||||||
Diluted earnings per share - Numerator: | |||||||||||
Net income from discontinued operations | $ 0 | $ 2,002,000 | $ 4,870,000 | ||||||||
Market-based Stock Options | |||||||||||
Per share data - Diluted earnings per share from: | |||||||||||
Shares excluded due to anti-dilution (treasury stock method) (in shares) | 0 | 51,000 | 0 | ||||||||
Convertible trust preferred securities | |||||||||||
Per share data - Diluted earnings per share from: | |||||||||||
Shares excluded due to anti-dilution (treasury stock method) (in shares) | 1,000 | 1,000 | 1,000 | ||||||||
Options, restricted stock, or other dilutive securities | |||||||||||
Per share data - Diluted earnings per share from: | |||||||||||
Shares excluded due to exercise price exceeding the average market price of common shares during the period (in shares) | 853,000 | 209,000 | 67,000 | ||||||||
Series D Preferred Stock | |||||||||||
Per share data - Diluted earnings per share from: | |||||||||||
Preferred stock dividend rate | 6.95% |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current expense: | |||||||||||
Federal | $ 8,592 | $ 20,165 | $ 17,176 | ||||||||
State | 8,576 | 12,152 | 6,509 | ||||||||
Total current expense | 17,168 | 32,317 | 23,685 | ||||||||
Deferred expense: | |||||||||||
Federal | 5,033 | 2,857 | 19,820 | ||||||||
State | 390 | 2,363 | 2,691 | ||||||||
Total deferred expense | 5,423 | 5,220 | 22,511 | ||||||||
Income tax expense | $ 6,788 | $ 5,517 | $ 5,369 | $ 4,917 | $ 8,651 | $ 5,461 | $ 17,399 | $ 6,026 | $ 22,591 | $ 37,537 | $ 46,196 |
Income Taxes Income Tax Rate Re
Income Taxes Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory Federal income tax rate | 21.00% | 21.00% | 35.00% |
State and local income tax, net of Federal tax benefit | 6.90% | 9.60% | 6.90% |
Book versus tax difference | 0.00% | 6.70% | 0.00% |
Tax-exempt interest, net | (5.60%) | (4.80%) | (10.30%) |
Tax credits | (4.10%) | (2.90%) | (3.10%) |
Investments in affordable housing projects | 3.40% | 1.90% | 2.20% |
Noncontrolling interests | 0.00% | (0.50%) | (1.50%) |
Re-measurement of deferred tax assets and liabilities | 0.00% | 0.00% | 13.70% |
Nondeductible goodwill | 0.00% | 0.00% | 10.10% |
Other, net | 0.30% | 0.40% | 0.50% |
Effective income tax rate | 21.90% | 31.40% | 53.50% |
Income Taxes Components of Defe
Income Taxes Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Gross deferred tax assets: | ||
Allowance for loan and OREO losses | $ 21,789 | $ 21,919 |
Interest on nonaccrual loans | 172 | 254 |
Stock compensation | 1,710 | 2,679 |
Deferred and accrued compensation | 13,096 | 15,540 |
Lease liabilities | 34,129 | 0 |
Unrealized loss on investments | 0 | 6,781 |
Other | 1,129 | 1,294 |
Total gross deferred tax assets | 72,025 | 48,467 |
Gross deferred tax liabilities: | ||
Goodwill and acquired intangible assets | 13,333 | 11,492 |
Fixed assets | 4,518 | 2,248 |
Right-of-use assets | 32,454 | 0 |
Prepaid expenses | 385 | 344 |
Contingent payments | 6,764 | 7,680 |
Unrealized gain on investments | 2,949 | 0 |
Other | 239 | 65 |
Total gross deferred tax liabilities | 60,642 | 21,829 |
Net deferred tax assets | $ 11,383 | $ 26,638 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1 | $ 935 | $ 1,025 | $ 974 |
Additions based on tax positions related to the current year | 177 | 149 | 183 |
Additions based on tax positions taken in prior years | 0 | 0 | 227 |
Decreases based on the expiration of statute of limitations | (203) | (239) | (359) |
Balance at December 31 | $ 909 | $ 935 | $ 1,025 |
Income Taxes Text Details Incom
Income Taxes Text Details Income Tax Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense Components [Line Items] | |||||
Statutory Federal income tax rate | 21.00% | 21.00% | 35.00% | ||
Change in enacted tax rate | $ 12,900 | ||||
Increase (decrease) in deferred income taxes | $ 15,200 | ||||
Deferred income tax expense/ (benefit) | 5,423 | $ 5,220 | $ 22,511 | ||
Increase to shareholders' equity | 9,800 | ||||
Unrecognized tax benefits that would impact effective tax rate | 900 | 800 | 800 | 900 | |
Income tax penalties and interest expense | $ 0 | 0 | 0 | ||
Income tax penalties and interest accrued | $ 0 | 0 | $ 0 | $ 0 | |
Income Tax Expense Components, Continuing Operations | |||||
Income Tax Expense Components [Line Items] | |||||
Deferred income tax expense/ (benefit) | $ 5,400 |
Employee Benefits 401(k) Plan (
Employee Benefits 401(k) Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Defined contribution cost | $ 2.3 | $ 3.1 | $ 3.3 |
Employee Benefits Salary Contin
Employee Benefits Salary Continuation Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Northern California Salary Continuation | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Postemployment benefits expense | $ 0.1 | $ 0.1 | $ 0.1 |
Postemployment benefits liability | 0.9 | 0.8 | |
Cash surrender value of life insurance | 6.4 | 6.3 | |
Southern California Salary Continuation Plan | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Postemployment benefits expense | 0.1 | 0.1 | $ 0.1 |
Postemployment benefits liability | 1.3 | 1.4 | |
Cash surrender value of life insurance | $ 5 | $ 5 |
Employee Benefits Deferred Comp
Employee Benefits Deferred Compensation Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Deferred compensation liability | $ 6.1 | $ 6.8 | |
Compensation expense | 1.2 | (0.4) | $ 0.9 |
Deferred compensation plan assets | 6.1 | 6.8 | |
Deferred compensation plan assets income | $ 1.2 | $ (0.4) | $ 0.9 |
Employee Benefits Stock Based I
Employee Benefits Stock Based Incentive Plans (Details) | 12 Months Ended | ||
Dec. 31, 2019planshares | Dec. 31, 2018shares | Dec. 31, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock-based compensation plans | plan | 3 | ||
2009 Stock Option and Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of outstanding stock maximum | 2.00% | ||
Number of shares authorized | 4,000,000 | ||
2010 Inducement Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 1,245,000 | ||
Terms of awards | The terms of the Inducement Plan are substantially similar to the terms of the 2009 Plan. | ||
Shares issued in period | 0 | 576,612 | 24,569 |
Employee Stock Purchase Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued in period | 198,138 | ||
Purchase price of common stock percent | 85.00% | ||
Stock plan offering period | 6 months | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Minimum | Employee Stock Purchase Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee subscription rate | 1.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Maximum | Employee Stock Purchase Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee subscription rate | 15.00% |
Employee Benefits Share based p
Employee Benefits Share based payments in compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Stock option and ESPP expense | $ 1,676 | $ 616 | $ 480 |
Nonvested share expense | 3,076 | 6,059 | 7,794 |
Subtotal | 4,752 | 6,675 | 8,274 |
Tax benefit | 1,223 | 1,784 | 3,188 |
Stock-based compensation expense, net of tax benefit | $ 3,529 | $ 4,891 | $ 5,086 |
Employee Benefits Stock Options
Employee Benefits Stock Options Shares Rollforward (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Options | |||
Shares | |||
Outstanding, beginning of period (in shares) | 663,455 | ||
Granted (in shares) | 437,016 | ||
Exercised (in shares) | 83,090 | ||
Forfeited (in shares) | 16,234 | ||
Expired (in shares) | 0 | ||
Outstanding, end of period (in shares) | 1,001,147 | 663,455 | |
Exercisable (in shares) | 94,294 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning of period (in dollars per share) | $ 11.44 | ||
Granted (in dollars per share) | 11.02 | ||
Exercised (in dollars per share) | 6.78 | ||
Forfeitures (in dollars per share) | 11.08 | ||
Expired (in dollars per share) | 0 | ||
Outstanding, end of period (in dollars per share) | 11.65 | $ 11.44 | |
Exercisable (in dollars per share) | $ 9.07 | ||
Outstanding, Weighted- Average Remaining Contractual Term in Years | 8 years 8 months 12 days | ||
Outstanding, Aggregate Intrinsic Value (in 000’s) | $ 725,000 | ||
Weighted- Average Remaining Contractual Term in Years, Exercisable | 6 years 4 months 24 days | ||
Aggregate Intrinsic Value (in 000’s), Exercisable | $ 301,000 | ||
2009 Stock Option and Incentive Plan | |||
Weighted Average Exercise Price | |||
Options exercised, intrinsic value | 400,000 | $ 1,500,000 | $ 900,000 |
2009 Stock Option and Incentive Plan | Stock Options | |||
Weighted Average Exercise Price | |||
Compensation not yet recognized options | $ 1,700,000 | ||
Compensation cost not yet recognized period for recognition | 2 years 10 months 24 days |
Employee Benefits Restricted St
Employee Benefits Restricted Stock Share Rollforward (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock | |||
Shares | |||
Nonvested at December 31, 2017 (in shares) | 1,213,928 | ||
Granted (in shares) | 844,691 | ||
Vested (in shares) | 551,400 | ||
Forfeited (in shares) | 232,929 | ||
Nonvested at December 31, 2018 (in shares) | 1,274,290 | 1,213,928 | |
Weighted Average Grant-Date Fair Value | |||
Nonvested at December 31, 2017 (in dollars per share) | $ 14.12 | ||
Granted (in dollars per share) | 11.05 | $ 16.11 | $ 15.55 |
Vested (in dollars per share) | 11.99 | ||
Forfeited (in dollars per share) | 13.85 | ||
Nonvested at December 31, 2018 (in dollars per share) | $ 12.89 | $ 14.12 | |
Compensation cost not yet recognized | $ 7.8 | ||
Compensation cost not yet recognized period for recognition | 2 years 3 months 7 days | ||
Fair value of shares vested | $ 6.6 | $ 8.1 | $ 8 |
Performance Shares | |||
Shares | |||
Nonvested at December 31, 2018 (in shares) | 589,124 | ||
Weighted Average Grant-Date Fair Value | |||
Potential performance shares, incremental expense | $ 7.8 | ||
Shares outstanding | 589,124 | ||
Maximum | Performance Shares | |||
Shares | |||
Nonvested at December 31, 2018 (in shares) | 1,178,248 |
Employee Benefits Supplemental
Employee Benefits Supplemental Executive Retirement Plans and Long Term Incentive Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Compensation expense | $ 1,200 | $ (400) | $ 900 |
Restructuring | 1,646 | 7,828 | 0 |
Holding Company SERP | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation | 7,500 | 7,300 | |
Net periodic benefit cost | $ 800 | $ 0 | $ 400 |
Benefit obligation, discount rate | 3.10% | 4.15% | 3.60% |
Pacific Northwest SERP | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation | $ 3,100 | $ 2,900 | |
Net periodic benefit cost | $ 200 | $ 200 | $ 200 |
Benefit obligation, discount rate | 3.10% | 4.18% | 3.37% |
KLS LTIP | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation | $ 7,900 | $ 9,200 | |
Benefit obligation, discount rate | 3.10% | 4.10% | 3.33% |
Compensation expense | $ 700 | $ 1,600 | $ 500 |
Restructuring | $ 800 |
Other Operating Expense (Detail
Other Operating Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other operating expense components [Line Items] | |||
Insurance | $ 2,655 | $ 3,084 | $ 3,286 |
Employee travel and meals | 2,508 | 2,918 | 3,910 |
Other banking expenses | 1,752 | 1,893 | 1,541 |
Pension costs - non service | 1,669 | 423 | (95) |
Publications and dues | 1,171 | 1,123 | 1,028 |
Postage, express mail, and courier | 630 | 840 | 974 |
Forms and supplies | 479 | 704 | 890 |
Trading errors | 1 | 511 | 108 |
OREO expenses | 0 | (21) | 4 |
Provision/(credit) for off-balance sheet loan commitments | (105) | (157) | (24) |
Other | 3,175 | 2,843 | 2,852 |
Total | 13,935 | 14,161 | 14,474 |
Salaries and employee benefits | $ 134,302 | $ 161,468 | 178,501 |
Restatement Adjustment | Accounting Standards Update 2017-07 | |||
Other operating expense components [Line Items] | |||
Total | 95 | ||
Salaries and employee benefits | $ (95) |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | $ 56,125,000 | $ 56,153,000 | $ 57,460,000 | $ 58,338,000 | $ 59,997,000 | $ 59,641,000 | $ 57,545,000 | $ 57,383,000 | $ 228,076,000 | $ 234,566,000 | $ 224,686,000 |
Fees and other income | 26,793,000 | 25,126,000 | 24,380,000 | 25,248,000 | 45,845,000 | 32,314,000 | 32,095,000 | 39,743,000 | 101,547,000 | 149,997,000 | 153,966,000 |
Total revenues | 82,918,000 | 81,279,000 | 81,840,000 | 83,586,000 | 105,842,000 | 91,955,000 | 89,640,000 | 97,126,000 | 329,623,000 | 384,563,000 | 378,652,000 |
Provision/(credit) for loan losses | (3,668,000) | 167,000 | 1,363,000 | (1,426,000) | 93,000 | (949,000) | 453,000 | (1,795,000) | (3,564,000) | (2,198,000) | (7,669,000) |
Operating expense | 58,457,000 | 55,537,000 | 55,659,000 | 60,553,000 | 63,557,000 | 68,557,000 | 64,384,000 | 70,857,000 | 230,206,000 | 267,355,000 | 299,936,000 |
Income before income taxes | 28,129,000 | 25,575,000 | 24,818,000 | 24,459,000 | 42,192,000 | 24,347,000 | 24,803,000 | 28,064,000 | 102,981,000 | 119,406,000 | 86,385,000 |
Income tax expense/(benefit) | 6,788,000 | 5,517,000 | 5,369,000 | 4,917,000 | 8,651,000 | 5,461,000 | 17,399,000 | 6,026,000 | 22,591,000 | 37,537,000 | 46,196,000 |
Net income from continuing operations | 80,390,000 | 81,869,000 | 40,189,000 | ||||||||
Less: Net income attributable to noncontrolling interests | 97,000 | 96,000 | 69,000 | 100,000 | 545,000 | 924,000 | 968,000 | 1,050,000 | 362,000 | 3,487,000 | 4,468,000 |
Net income from discontinued operations | 306,000 | 0 | (2,000) | 1,698,000 | 0 | 2,002,000 | 4,870,000 | ||||
Net income attributable to the Company | 21,244,000 | $ 19,962,000 | $ 19,380,000 | $ 19,442,000 | 33,302,000 | $ 17,962,000 | $ 6,434,000 | $ 22,686,000 | 80,028,000 | 80,384,000 | 40,591,000 |
Assets | 8,830,501,000 | 8,494,625,000 | 8,830,501,000 | 8,494,625,000 | 8,311,744,000 | ||||||
Amortization of intangibles | 2,691,000 | 2,929,000 | 5,601,000 | ||||||||
Depreciation | 11,228,000 | 10,694,000 | 8,106,000 | ||||||||
Operating Segments | Private Banking | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | 231,796,000 | 238,036,000 | 227,280,000 | ||||||||
Fees and other income | 13,869,000 | 9,366,000 | 10,856,000 | ||||||||
Total revenues | 245,665,000 | 247,402,000 | 238,136,000 | ||||||||
Provision/(credit) for loan losses | (3,564,000) | (2,198,000) | (7,669,000) | ||||||||
Operating expense | 157,891,000 | 165,263,000 | 149,008,000 | ||||||||
Income before income taxes | 91,338,000 | 84,337,000 | 96,797,000 | ||||||||
Income tax expense/(benefit) | 19,110,000 | 16,313,000 | 43,356,000 | ||||||||
Net income from continuing operations | 72,228,000 | 68,024,000 | 53,441,000 | ||||||||
Net income attributable to the Company | 72,228,000 | 68,024,000 | 53,441,000 | ||||||||
Assets | 8,746,289,000 | 8,424,967,000 | 8,746,289,000 | 8,424,967,000 | 8,177,304,000 | ||||||
Amortization of intangibles | 37,000 | 0 | 0 | ||||||||
Depreciation | 9,737,000 | 8,646,000 | 5,639,000 | ||||||||
Operating Segments | Wealth Management and Trust | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | 407,000 | 338,000 | 122,000 | ||||||||
Fees and other income | 75,949,000 | 79,192,000 | 76,237,000 | ||||||||
Total revenues | 76,356,000 | 79,530,000 | 76,359,000 | ||||||||
Operating expense | 58,375,000 | 66,492,000 | 69,966,000 | ||||||||
Income before income taxes | 17,981,000 | 13,038,000 | 6,393,000 | ||||||||
Income tax expense/(benefit) | 5,768,000 | 4,145,000 | 3,982,000 | ||||||||
Net income from continuing operations | 12,213,000 | 8,893,000 | 2,411,000 | ||||||||
Net income attributable to the Company | 12,213,000 | 8,893,000 | 2,411,000 | ||||||||
Assets | 148,803,000 | 130,346,000 | 148,803,000 | 130,346,000 | 120,061,000 | ||||||
Amortization of intangibles | 2,654,000 | 2,775,000 | 2,882,000 | ||||||||
Depreciation | 1,297,000 | 1,660,000 | 1,893,000 | ||||||||
Holding Company and Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | (4,127,000) | (3,808,000) | (2,716,000) | ||||||||
Fees and other income | 11,729,000 | 61,439,000 | 66,873,000 | ||||||||
Total revenues | 7,602,000 | 57,631,000 | 64,157,000 | ||||||||
Operating expense | 13,940,000 | 35,600,000 | 80,962,000 | ||||||||
Income before income taxes | (6,338,000) | 22,031,000 | (16,805,000) | ||||||||
Income tax expense/(benefit) | (2,287,000) | 17,079,000 | (1,142,000) | ||||||||
Net income from continuing operations | (4,051,000) | 4,952,000 | (15,663,000) | ||||||||
Less: Net income attributable to noncontrolling interests | 362,000 | 3,487,000 | 4,468,000 | ||||||||
Net income from discontinued operations | 0 | 2,002,000 | 4,870,000 | ||||||||
Net income attributable to the Company | (4,413,000) | 3,467,000 | (15,261,000) | ||||||||
Assets | $ (64,592,000) | $ (60,688,000) | (64,592,000) | (60,688,000) | 14,379,000 | ||||||
Amortization of intangibles | 0 | 154,000 | 2,719,000 | ||||||||
Depreciation | $ 194,000 | $ 388,000 | $ 574,000 |
Reportable Segments Segments Te
Reportable Segments Segments Text Disclosures (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019reportableSegmentaffiliate | Dec. 31, 2019USD ($)market | Dec. 31, 2019segmentmarket | Dec. 31, 2019marketreportableSegment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||
Number of reportable segments | 3 | 2 | 2 | |||||||
Number of affiliates | affiliate | 2 | |||||||||
Restructuring | $ 1,646,000 | $ 7,828,000 | $ 0 | |||||||
Goodwill, Impairment Loss | 0 | 0 | 24,901,000 | |||||||
Gain/(loss) on sale of affiliates | 0 | 18,142,000 | (1,264,000) | |||||||
Net income from discontinued operations | $ 306,000 | $ 0 | $ (2,000) | $ 1,698,000 | $ 0 | 2,002,000 | 4,870,000 | |||
Private Banking | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Number of geographic markets | market | 3 | 3 | 3 | |||||||
Holding Company and Eliminations | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Net income from discontinued operations | $ 0 | 2,002,000 | $ 4,870,000 | |||||||
Operating Segments | Wealth Management and Trust | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Restructuring | 400,000 | 1,200,000 | ||||||||
Operating Segments | Private Banking | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Restructuring | $ 1,300,000 | $ 6,600,000 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Recurring Basis (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)security |
Assets: | ||
Available-for-sale, fair value | $ 978,284,000 | $ 994,065,000 |
Equity securities at fair value | 18,810,000 | $ 14,228,000 |
Liabilities: | ||
Transfers of assets from Level 1 to Level 2, numbers of assets | security | 5 | |
Assets transferred from level 1 to level 2 | $ 33,400,000 | |
U.S. government and agencies | ||
Assets: | ||
Available-for-sale, fair value | 19,940,000 | 29,114,000 |
Government-sponsored entities | ||
Assets: | ||
Available-for-sale, fair value | 156,255,000 | 207,703,000 |
Municipal bonds | ||
Assets: | ||
Available-for-sale, fair value | 325,455,000 | 308,959,000 |
Mortgage-backed securities | ||
Assets: | ||
Available-for-sale, fair value | 476,634,000 | 448,289,000 |
Fair Value, Inputs, Level 3 | ||
Liabilities: | ||
Assets value | 0 | 0 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Available-for-sale, fair value | 978,284,000 | 994,065,000 |
Equity securities at fair value | 14,228,000 | |
Trading securities held in the rabbi trust | 6,119,000 | 6,839,000 |
Liabilities: | ||
Deferred compensation rabbi trust | 6,112,000 | 6,839,000 |
Fair Value, Measurements, Recurring | U.S. government and agencies | ||
Assets: | ||
Available-for-sale, fair value | 19,940,000 | 29,114,000 |
Fair Value, Measurements, Recurring | Government-sponsored entities | ||
Assets: | ||
Available-for-sale, fair value | 156,255,000 | 207,703,000 |
Fair Value, Measurements, Recurring | Municipal bonds | ||
Assets: | ||
Available-for-sale, fair value | 325,455,000 | 308,959,000 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Assets: | ||
Available-for-sale, fair value | 476,634,000 | 448,289,000 |
Fair Value, Measurements, Recurring | Interest rate swaps | ||
Assets: | ||
Derivative Assets | 36,089,000 | 21,889,000 |
Liabilities: | ||
Derivative liabilities | 36,580,000 | 22,385,000 |
Fair Value, Measurements, Recurring | Derivatives - interest rate swaps | ||
Assets: | ||
Derivative Assets | 553,000 | |
Fair Value, Measurements, Recurring | Risk participation agreements | ||
Assets: | ||
Derivative Assets | 10,000 | 2,000 |
Liabilities: | ||
Derivative liabilities | 242,000 | 152,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Assets: | ||
Available-for-sale, fair value | 0 | 0 |
Equity securities at fair value | 18,810,000 | 14,228,000 |
Trading securities held in the rabbi trust | 6,119,000 | 6,839,000 |
Liabilities: | ||
Deferred compensation rabbi trust | 6,112,000 | 6,839,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | U.S. government and agencies | ||
Assets: | ||
Available-for-sale, fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Government-sponsored entities | ||
Assets: | ||
Available-for-sale, fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Municipal bonds | ||
Assets: | ||
Available-for-sale, fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Mortgage-backed securities | ||
Assets: | ||
Available-for-sale, fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Interest rate swaps | ||
Assets: | ||
Derivative Assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Derivatives - interest rate swaps | ||
Assets: | ||
Derivative Assets | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Risk participation agreements | ||
Assets: | ||
Derivative Assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Assets: | ||
Available-for-sale, fair value | 978,284,000 | 994,065,000 |
Equity securities at fair value | 0 | 0 |
Trading securities held in the rabbi trust | 0 | 0 |
Liabilities: | ||
Deferred compensation rabbi trust | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | U.S. government and agencies | ||
Assets: | ||
Available-for-sale, fair value | 19,940,000 | 29,114,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Government-sponsored entities | ||
Assets: | ||
Available-for-sale, fair value | 156,255,000 | 207,703,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Municipal bonds | ||
Assets: | ||
Available-for-sale, fair value | 325,455,000 | 308,959,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Mortgage-backed securities | ||
Assets: | ||
Available-for-sale, fair value | 476,634,000 | 448,289,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Interest rate swaps | ||
Assets: | ||
Derivative Assets | 36,089,000 | 21,889,000 |
Liabilities: | ||
Derivative liabilities | 36,580,000 | 22,385,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Derivatives - interest rate swaps | ||
Assets: | ||
Derivative Assets | 553,000 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Risk participation agreements | ||
Assets: | ||
Derivative Assets | 10,000 | 2,000 |
Liabilities: | ||
Derivative liabilities | 242,000 | 152,000 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Assets: | ||
Available-for-sale, fair value | 0 | 0 |
Equity securities at fair value | 0 | 0 |
Trading securities held in the rabbi trust | 0 | 0 |
Liabilities: | ||
Deferred compensation rabbi trust | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | U.S. government and agencies | ||
Assets: | ||
Available-for-sale, fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Government-sponsored entities | ||
Assets: | ||
Available-for-sale, fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Municipal bonds | ||
Assets: | ||
Available-for-sale, fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Mortgage-backed securities | ||
Assets: | ||
Available-for-sale, fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Interest rate swaps | ||
Assets: | ||
Derivative Assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Derivatives - interest rate swaps | ||
Assets: | ||
Derivative Assets | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Risk participation agreements | ||
Assets: | ||
Derivative Assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements Fair _2
Fair Value Measurements Fair Value Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Loans, net | $ 0 | $ 0 |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Loans, net | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Assets: | ||
Loans, net | 6,883,360 | 6,734,216 |
Estimate of Fair Value Measurement | ||
Assets: | ||
Loans, net | 6,883,360 | 6,734,216 |
Estimate of Fair Value Measurement | Fair Value, Measurements, Nonrecurring | ||
Assets: | ||
Loans, net | 109 | 2,192 |
Total assets | 109 | 2,192 |
Estimate of Fair Value Measurement | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 1 | ||
Assets: | ||
Loans, net | 0 | 0 |
Total assets | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 2 | ||
Assets: | ||
Loans, net | 0 | 0 |
Total assets | 0 | 0 |
Estimate of Fair Value Measurement | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | ||
Assets: | ||
Loans, net | 109 | 2,192 |
Total assets | 109 | 2,192 |
Changes Measurement | Fair Value, Measurements, Nonrecurring | ||
Assets: | ||
Loans, net | 710 | (1,648) |
Total assets | $ 710 | $ (1,648) |
Fair Value Measurements Quantit
Fair Value Measurements Quantitative Information about Level 3 Nonrecurring Assets (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | $ 6,883,360 | $ 6,734,216 |
Discount for costs to sell | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, measurement input | 1000.00% | |
Discount for costs to sell | Fair Value, Measurements, Nonrecurring | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, measurement input | 0.00% | |
Discount for costs to sell | Fair Value, Measurements, Nonrecurring | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, measurement input | 9.00% | |
Discount for costs to sell | Fair Value, Measurements, Nonrecurring | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, measurement input | 10.00% | 5.00% |
Appraisal adjustments | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, measurement input | 0.00% | 0.00% |
Appraisal adjustments | Fair Value, Measurements, Nonrecurring | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, measurement input | 0.00% | 0.00% |
Substandard | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | $ 109 | $ 2,192 |
Fair Value Measurements Not Mea
Fair Value Measurements Not Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Investment securities held-to-maturity | $ 47,949 | $ 68,595 |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Cash and cash equivalents | 292,479 | 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 | |
Federal Home Loan Bank borrowings | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Other financial liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities held-to-maturity | 47,949 | 68,595 |
Loans held for sale | 7,475 | 2,837 |
Loans, net | 0 | 0 |
Other financial assets | 67,348 | 78,730 |
FINANCIAL LIABILITIES: | ||
Deposits | 7,241,739 | 6,777,928 |
Securities sold under agreements to repurchase | 53,398 | 36,928 |
Federal funds purchased | 250,000 | |
Federal Home Loan Bank borrowings | 351,233 | 417,092 |
Junior subordinated debentures | 0 | 0 |
Other financial liabilities | 1,957 | 2,001 |
Fair Value, Inputs, Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities held-to-maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 6,883,360 | 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 | |
Federal Home Loan Bank borrowings | 0 | 0 |
Junior subordinated debentures | 96,363 | 96,363 |
Other financial liabilities | 0 | 0 |
Reported Value Measurement | ||
Assets: | ||
Cash and cash equivalents | 292,479 | 127,259 |
Investment securities held-to-maturity | 48,212 | 70,438 |
Loans held for sale | 7,386 | 2,812 |
Loans, net | 6,904,722 | 6,817,846 |
Other financial assets | 67,348 | 78,730 |
FINANCIAL LIABILITIES: | ||
Deposits | 7,241,476 | 6,781,170 |
Securities sold under agreements to repurchase | 53,398 | 36,928 |
Federal funds purchased | 250,000 | |
Federal Home Loan Bank borrowings | 350,829 | 420,144 |
Junior subordinated debentures | 106,363 | 106,363 |
Other financial liabilities | 1,957 | 2,001 |
Estimate of Fair Value Measurement | ||
Assets: | ||
Cash and cash equivalents | 292,479 | 127,259 |
Investment securities held-to-maturity | 47,949 | 68,595 |
Loans held for sale | 7,475 | 2,837 |
Loans, net | 6,883,360 | 6,734,216 |
Other financial assets | 67,348 | 78,730 |
FINANCIAL LIABILITIES: | ||
Deposits | 7,241,739 | 6,777,928 |
Securities sold under agreements to repurchase | 53,398 | 36,928 |
Federal funds purchased | 250,000 | |
Federal Home Loan Bank borrowings | 351,233 | 417,092 |
Junior subordinated debentures | 96,363 | 96,363 |
Other financial liabilities | $ 1,957 | $ 2,001 |
Financial Instruments With Of_3
Financial Instruments With Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Variable rate | ||
Supply Commitment [Line Items] | ||
Financial instruments with off-balance sheet risks | $ 60,473 | $ 59,766 |
Fixed rate | ||
Supply Commitment [Line Items] | ||
Financial instruments with off-balance sheet risks | 63,747 | 38,332 |
Total commitments to originate new loans | ||
Supply Commitment [Line Items] | ||
Financial instruments with off-balance sheet risks | 124,220 | 98,098 |
Unadvanced portion of loans and unused lines of credit | ||
Supply Commitment [Line Items] | ||
Financial instruments with off-balance sheet risks | 1,468,782 | 1,413,737 |
Standby letters of credit | ||
Supply Commitment [Line Items] | ||
Financial instruments with off-balance sheet risks | 49,117 | 36,755 |
Forward commitments to sell loans | ||
Supply Commitment [Line Items] | ||
Financial instruments with off-balance sheet risks | $ 11,850 | $ 4,657 |
Boston Private Financial Hold_3
Boston Private Financial Holdings, Inc. (Parent Company Only) Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 292,479 | $ 127,259 | ||
Other assets | 287,316 | 246,962 | ||
Total assets | 8,830,501 | 8,494,625 | $ 8,311,744 | |
Junior subordinated debentures | 106,363 | 106,363 | ||
Other liabilities | 140,820 | 143,540 | ||
Total liabilities | 8,010,100 | 7,738,145 | ||
Redeemable Noncontrolling Interests | 1,383 | 2,526 | ||
Total liabilities, redeemable noncontrolling interests and shareholders’ equity | 8,830,501 | 8,494,625 | ||
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 51,324 | 51,088 | $ 66,361 | $ 54,694 |
Investment in wholly-owned and majority-owned subsidiaries | 857,062 | 802,642 | ||
Investment in partnerships and trusts | 6,340 | 6,340 | ||
Other assets | 27,453 | 36,483 | ||
Total assets | 942,179 | 896,553 | ||
Junior subordinated debentures | 106,363 | 106,363 | ||
Deferred income taxes | 2,895 | 12,968 | ||
Other liabilities | 12,520 | 20,742 | ||
Total liabilities | 121,778 | 140,073 | ||
Redeemable Noncontrolling Interests | 1,383 | 2,526 | ||
Total Shareholders’ Equity | 819,018 | 753,954 | ||
Total liabilities, redeemable noncontrolling interests and shareholders’ equity | $ 942,179 | $ 896,553 |
Boston Private Financial Hold_4
Boston Private Financial Holdings, Inc. (Parent Company Only) Income Statement (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Gain/(loss) on sale of affiliates | $ 0 | $ 18,142,000 | $ (1,264,000) | ||||||||
Other | 2,974,000 | 853,000 | 2,098,000 | ||||||||
Total income | $ 82,918,000 | $ 81,279,000 | $ 81,840,000 | $ 83,586,000 | $ 105,842,000 | $ 91,955,000 | $ 89,640,000 | $ 97,126,000 | 329,623,000 | 384,563,000 | 378,652,000 |
Salaries and employee benefits | 134,302,000 | 161,468,000 | 178,501,000 | ||||||||
Professional services | 15,228,000 | 13,155,000 | 13,763,000 | ||||||||
Junior subordinated debentures | 4,189,000 | 3,925,000 | 2,919,000 | ||||||||
Other | 13,935,000 | 14,161,000 | 14,474,000 | ||||||||
Income before income taxes | 28,129,000 | 25,575,000 | 24,818,000 | 24,459,000 | 42,192,000 | 24,347,000 | 24,803,000 | 28,064,000 | 102,981,000 | 119,406,000 | 86,385,000 |
Income tax expense/(benefit) | 6,788,000 | 5,517,000 | 5,369,000 | 4,917,000 | 8,651,000 | 5,461,000 | 17,399,000 | 6,026,000 | 22,591,000 | 37,537,000 | 46,196,000 |
Net income from discontinued operations | 306,000 | 0 | (2,000) | 1,698,000 | 0 | 2,002,000 | 4,870,000 | ||||
Net income attributable to the Company | $ 21,244,000 | $ 19,962,000 | $ 19,380,000 | $ 19,442,000 | $ 33,302,000 | $ 17,962,000 | $ 6,434,000 | $ 22,686,000 | 80,028,000 | 80,384,000 | 40,591,000 |
Parent Company | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Interest income | 62,000 | 107,000 | 180,000 | ||||||||
Dividends from subsidiaries | 54,606,000 | 45,448,000 | 49,316,000 | ||||||||
Gain/(loss) on sale of affiliates | 0 | 18,142,000 | (1,264,000) | ||||||||
Other | 1,557,000 | 59,000 | 193,000 | ||||||||
Total income | 56,225,000 | 63,756,000 | 48,425,000 | ||||||||
Salaries and employee benefits | 2,106,000 | 2,121,000 | 4,061,000 | ||||||||
Professional services | 1,241,000 | 1,381,000 | 1,369,000 | ||||||||
Junior subordinated debentures | 4,189,000 | 3,925,000 | 2,919,000 | ||||||||
Other | 2,185,000 | 1,406,000 | 1,424,000 | ||||||||
Total operating expense | 9,721,000 | 8,833,000 | 9,773,000 | ||||||||
Income before income taxes | 46,504,000 | 54,923,000 | 38,652,000 | ||||||||
Income tax expense/(benefit) | (2,639,000) | 14,628,000 | (6,880,000) | ||||||||
Net income from discontinued operations | 0 | 2,002,000 | 4,870,000 | ||||||||
Income before equity in undistributed earnings of subsidiaries | 49,143,000 | 42,297,000 | 50,402,000 | ||||||||
Equity/(loss) in undistributed earnings of subsidiaries | 30,885,000 | 38,087,000 | (9,811,000) | ||||||||
Net income attributable to the Company | $ 80,028,000 | $ 80,384,000 | $ 40,591,000 |
Boston Private Financial Hold_5
Boston Private Financial Holdings, Inc. (Parent Company Only) Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||||||||
Net income attributable to the Company | $ 21,244 | $ 19,962 | $ 19,380 | $ 19,442 | $ 33,302 | $ 17,962 | $ 6,434 | $ 22,686 | $ 80,028 | $ 80,384 | $ 40,591 |
Net income from continuing operations | 80,028 | 78,382 | 35,721 | ||||||||
Depreciation and amortization | 24,125 | 23,129 | 21,023 | ||||||||
(Gain)/loss on sale of affiliates | 0 | (18,142) | 1,264 | ||||||||
Net decrease/(increase) in other operating activities | (32,737) | (23,240) | (8,466) | ||||||||
Net cash provided by/(used in) operating activities of continuing operations | 73,282 | 91,497 | 97,115 | ||||||||
Net cash provided by/(used in) operating activities of discontinued operations | 0 | 2,002 | 4,870 | ||||||||
Net cash provided by operating activities | 73,282 | 93,499 | 101,985 | ||||||||
Cash flows from investing activities: | |||||||||||
Net cash provided by/(used in) investing activities | (18,996) | (198,405) | (354,315) | ||||||||
Cash flows from financing activities: | |||||||||||
Repurchase of Series D preferred stock, including deemed dividend | 0 | (50,000) | 0 | ||||||||
Repurchase of common stock | (7,193) | (20,000) | 0 | ||||||||
Dividends paid to common shareholders | (40,380) | (40,685) | (37,054) | ||||||||
Dividends paid to preferred shareholders | 0 | (1,738) | (3,475) | ||||||||
Proceeds from stock option exercises | 562 | 1,661 | 882 | ||||||||
Proceeds from issuance of common stock | 2,413 | 1,866 | 1,601 | ||||||||
Other equity adjustments | (248) | 3,786 | 26 | ||||||||
Net cash provided by financing activities | 110,934 | 111,624 | 266,314 | ||||||||
Cash and cash equivalents at beginning of year | 127,259 | 127,259 | |||||||||
Cash and cash equivalents at end of year | 292,479 | 127,259 | 292,479 | 127,259 | |||||||
Parent Company | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income attributable to the Company | 80,028 | 80,384 | 40,591 | ||||||||
Net income from discontinued operations | 0 | 2,002 | 4,870 | ||||||||
Net income from continuing operations | 80,028 | 78,382 | 35,721 | ||||||||
Equity in earnings/(loss) of subsidiaries: | (85,480) | (83,232) | (39,326) | ||||||||
Dividends from subsidiaries | 54,606 | 45,448 | 49,316 | ||||||||
Depreciation and amortization | 201 | (186) | 3,553 | ||||||||
(Gain)/loss on sale of affiliates | 0 | (18,142) | 1,264 | ||||||||
Net decrease/(increase) in other operating activities | (8,108) | 13,181 | (2,440) | ||||||||
Net cash provided by/(used in) operating activities of continuing operations | 41,247 | 35,451 | 48,088 | ||||||||
Net cash provided by/(used in) operating activities of discontinued operations | 0 | 2,002 | 4,870 | ||||||||
Net cash provided by operating activities | 41,247 | 37,453 | 52,958 | ||||||||
Cash flows from investing activities: | |||||||||||
Contingent consideration from divestitures | 4,507 | 1,233 | 0 | ||||||||
Cash received from divestitures | 0 | 52,981 | 0 | ||||||||
Net cash provided by/(used in) investing activities | 4,429 | 54,118 | (54) | ||||||||
Cash flows from financing activities: | |||||||||||
Repurchase of Series D preferred stock, including deemed dividend | 0 | (50,000) | 0 | ||||||||
Equity sales in minority-owned subsidiaries | 0 | 1,021 | 1,410 | ||||||||
Repurchase of common stock | (7,193) | (20,000) | 0 | ||||||||
Dividends paid to common shareholders | (40,380) | (40,685) | (37,054) | ||||||||
Dividends paid to preferred shareholders | 0 | (1,738) | (3,475) | ||||||||
Proceeds from stock option exercises | 562 | 1,661 | 882 | ||||||||
Proceeds from issuance of common stock | 2,413 | 434 | 2,740 | ||||||||
Other equity adjustments | (842) | 2,463 | (5,740) | ||||||||
Net cash provided by financing activities | (45,440) | (106,844) | (41,237) | ||||||||
Net increase in cash and cash equivalents | 236 | (15,273) | 11,667 | ||||||||
Cash and cash equivalents at beginning of year | $ 51,088 | $ 66,361 | 51,088 | 66,361 | 54,694 | ||||||
Cash and cash equivalents at end of year | $ 51,324 | $ 51,088 | 51,324 | 51,088 | 66,361 | ||||||
Parent Company | Non Banking Segments | |||||||||||
Cash flows from investing activities: | |||||||||||
Capital investments in subsidiaries: | $ (78) | $ (96) | $ (54) |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Common equity tier 1 risk-based capital | ||
Common equity tier 1 risk-based capital, actual, amount | $ 745,926 | $ 702,728 |
Common equity tier 1 risk-based capital, actual, ratio | 11.42% | 11.40% |
Common equity tier 1 risk-based capital, for capital adequacy purposes (at least), amount | $ 293,886 | $ 277,275 |
Common equity tier 1 risk-based capital, for capital adequacy purposes (at least), ratio | 4.50% | 4.50% |
Tier 1 risk-based capital | ||
Tier 1 risk-based capital, actual, amount | $ 846,337 | $ 803,311 |
Tier 1 risk-based capital, actual, ratio | 12.96% | 13.04% |
Tier 1 risk-based capital, for capital adequacy purposes (at least), amount | $ 391,848 | $ 369,701 |
Tier 1 risk-based capital, for capital adequacy purposes (at least), ratio | 6.00% | 6.00% |
Total risk-based capital | ||
Total risk-based capital, actual, amount | $ 919,573 | $ 879,927 |
Total risk-based capital, actual, ratio | 14.08% | 14.28% |
Total risk-based capital, for capital adequacy purposes (at least), amount | $ 522,464 | $ 492,934 |
Total risk-based capital, for capital adequacy purposes (at least), ratio | 8.00% | 8.00% |
Tier 1 leverage capital | ||
Tier 1 leverage capital, actual, amount | $ 846,337 | $ 803,311 |
Tier 1 leverage capital, actual, ratio | 9.77% | 9.54% |
Tier 1 leverage capital, for capital adequacy purposes (at least), amount | $ 346,398 | $ 336,648 |
Tier 1 leverage capital, for capital adequacy purposes (at least), ratio | 4.00% | 4.00% |
Basel III Minimum with Capital Conservation Buffer [Domain] | ||
Common equity tier 1 risk-based capital | ||
Common equity tier 1 risk-based capital, for capital adequacy purposes (at least), ratio | 7.00% | 7.00% |
Tier 1 risk-based capital | ||
Tier 1 risk-based capital, for capital adequacy purposes (at least), ratio | 8.50% | 8.50% |
Total risk-based capital | ||
Total risk-based capital, for capital adequacy purposes (at least), ratio | 10.50% | 10.50% |
Tier 1 leverage capital | ||
Tier 1 leverage capital, for capital adequacy purposes (at least), ratio | 4.00% | 4.00% |
Boston Private Bank | ||
Common equity tier 1 risk-based capital | ||
Common equity tier 1 risk-based capital, actual, amount | $ 778,635 | $ 745,051 |
Common equity tier 1 risk-based capital, actual, ratio | 11.97% | 12.13% |
Common equity tier 1 risk-based capital, for capital adequacy purposes (at least), amount | $ 292,717 | $ 276,352 |
Common equity tier 1 risk-based capital, for capital adequacy purposes (at least), ratio | 4.50% | 4.50% |
Common equity tier 1 risk-based capital, to be well capitalized under prompt corrective action provisions (at least), amount | $ 422,813 | $ 399,175 |
Common equity tier 1 risk-based capital, to be well capitalized under prompt corrective action provisions (at least), ratio | 6.50% | 6.50% |
Tier 1 risk-based capital | ||
Tier 1 risk-based capital, actual, amount | $ 778,635 | $ 745,051 |
Tier 1 risk-based capital, actual, ratio | 11.97% | 12.13% |
Tier 1 risk-based capital, for capital adequacy purposes (at least), amount | $ 390,289 | $ 368,469 |
Tier 1 risk-based capital, for capital adequacy purposes (at least), ratio | 6.00% | 6.00% |
Tier 1 risk-based capital, to be well capitalized under prompt corrective action provisions (at least), amount | $ 520,386 | $ 491,292 |
Tier 1 risk-based capital, to be well capitalized under prompt corrective action provisions (at least), ratio | 8.00% | 8.00% |
Total risk-based capital | ||
Total risk-based capital, actual, amount | $ 851,733 | $ 821,584 |
Total risk-based capital, actual, ratio | 13.09% | 13.38% |
Total risk-based capital, for capital adequacy purposes (at least), amount | $ 520,386 | $ 491,292 |
Total risk-based capital, for capital adequacy purposes (at least), ratio | 8.00% | 8.00% |
Total risk-based capital, to be well capitalized under prompt corrective action provisions (at least), ratio | $ 650,482 | $ 614,115 |
Total risk-based capital, to be well capitalized under prompt corrective action provisions (at least), amount | 10.00% | 10.00% |
Tier 1 leverage capital | ||
Tier 1 leverage capital, actual, amount | $ 778,635 | $ 745,051 |
Tier 1 leverage capital, actual, ratio | 9.03% | 8.92% |
Tier 1 leverage capital, for capital adequacy purposes (at least), amount | $ 344,958 | $ 334,029 |
Tier 1 leverage capital, for capital adequacy purposes (at least), ratio | 4.00% | 4.00% |
Tier 1 leverage capital, to be well capitalized under prompt corrective action provisions (at least), amount | $ 431,198 | $ 417,537 |
Tier 1 leverage capital, to be well capitalized under prompt corrective action provisions (at least), ratio | 5.00% | 5.00% |
Boston Private Bank | Basel III Minimum with Capital Conservation Buffer [Domain] | ||
Common equity tier 1 risk-based capital | ||
Common equity tier 1 risk-based capital, for capital adequacy purposes (at least), ratio | 7.00% | 7.00% |
Tier 1 risk-based capital | ||
Tier 1 risk-based capital, for capital adequacy purposes (at least), ratio | 8.50% | 8.50% |
Total risk-based capital | ||
Total risk-based capital, for capital adequacy purposes (at least), ratio | 10.50% | 10.50% |
Tier 1 leverage capital | ||
Tier 1 leverage capital, for capital adequacy purposes (at least), ratio | 4.00% | 4.00% |
Regulatory Matters Text Details
Regulatory Matters Text Details (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 risk-based capital, actual, amount | $ 846,337 | $ 803,311 |
Junior Subordinated Debentures | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 risk-based capital, actual, amount | $ 100,000 | $ 100,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue related to fixed fee contracts | $ 6.5 | $ 7 |
Revenue Considered In-scope for
Revenue Considered In-scope for ASC 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Non-interest income within the scope of other GAAP topics | $ 12,822 | $ 24,541 | $ 6,964 | ||||||||
Total fees and other income | $ 26,793 | $ 25,126 | $ 24,380 | $ 25,248 | $ 45,845 | $ 32,314 | $ 32,095 | $ 39,743 | 101,547 | 149,997 | 153,966 |
Fees and Other Income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 88,725 | 125,456 | 147,002 | ||||||||
Wealth management and trust fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 75,757 | 99,818 | 97,921 | ||||||||
Investment management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | 10,155 | 21,728 | 45,515 | ||||||||
Other income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from contracts with customers | $ 2,813 | $ 3,910 | $ 3,566 |
Selected Quarterly Data (Unau_3
Selected Quarterly Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net interest income | $ 56,125,000 | $ 56,153,000 | $ 57,460,000 | $ 58,338,000 | $ 59,997,000 | $ 59,641,000 | $ 57,545,000 | $ 57,383,000 | $ 228,076,000 | $ 234,566,000 | $ 224,686,000 |
Fees and other income | 26,793,000 | 25,126,000 | 24,380,000 | 25,248,000 | 45,845,000 | 32,314,000 | 32,095,000 | 39,743,000 | 101,547,000 | 149,997,000 | 153,966,000 |
Total revenues | 82,918,000 | 81,279,000 | 81,840,000 | 83,586,000 | 105,842,000 | 91,955,000 | 89,640,000 | 97,126,000 | 329,623,000 | 384,563,000 | 378,652,000 |
Provision/(credit) for loan losses | (3,668,000) | 167,000 | 1,363,000 | (1,426,000) | 93,000 | (949,000) | 453,000 | (1,795,000) | (3,564,000) | (2,198,000) | (7,669,000) |
Operating expense | 58,457,000 | 55,537,000 | 55,659,000 | 60,553,000 | 63,557,000 | 68,557,000 | 64,384,000 | 70,857,000 | 230,206,000 | 267,355,000 | 299,936,000 |
Income before income taxes | 28,129,000 | 25,575,000 | 24,818,000 | 24,459,000 | 42,192,000 | 24,347,000 | 24,803,000 | 28,064,000 | 102,981,000 | 119,406,000 | 86,385,000 |
Income tax expense/(benefit) | 6,788,000 | 5,517,000 | 5,369,000 | 4,917,000 | 8,651,000 | 5,461,000 | 17,399,000 | 6,026,000 | 22,591,000 | 37,537,000 | 46,196,000 |
Net income from discontinued operations | 306,000 | 0 | (2,000) | 1,698,000 | 0 | 2,002,000 | 4,870,000 | ||||
Less: Net income attributable to noncontrolling interests | 97,000 | 96,000 | 69,000 | 100,000 | 545,000 | 924,000 | 968,000 | 1,050,000 | 362,000 | 3,487,000 | 4,468,000 |
Net income attributable to the Company | $ 21,244,000 | $ 19,962,000 | $ 19,380,000 | $ 19,442,000 | $ 33,302,000 | $ 17,962,000 | $ 6,434,000 | $ 22,686,000 | $ 80,028,000 | $ 80,384,000 | $ 40,591,000 |
Basic earnings (in dollars per share) | $ 0.26 | $ 0.24 | $ 0.22 | $ 0.25 | $ 0.43 | $ 0.20 | $ 0.03 | $ 0.27 | $ 0.97 | $ 0.94 | $ 0.43 |
Diluted earnings (in dollars per share) | $ 0.26 | $ 0.24 | $ 0.22 | $ 0.25 | $ 0.42 | $ 0.20 | $ 0.03 | $ 0.27 | $ 0.97 | $ 0.92 | $ 0.42 |