Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35070 | |
Entity Registrant Name | BOSTON PRIVATE FINANCIAL HOLDINGS, INC | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 04-2976299 | |
Entity Address, Address Line One | Ten Post Office Square | |
Entity Address, Postal Zip Code | 02109 | |
Entity Address, City or Town | Boston, | |
Entity Address, State or Province | MA | |
City Area Code | 617 | |
Local Phone Number | 912-1900 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | BPFH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 81,800,550 | |
Entity Central Index Key | 0000821127 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and cash equivalents | $ 61,714,000 | $ 292,479,000 |
Investment securities available-for-sale (amortized cost of $961,351 and $966,900 at March 31, 2020 and December 31, 2019, respectively) | 993,166,000 | 978,284,000 |
Investment securities held-to-maturity (fair value of $46,096 and $47,949 at March 31, 2020 and December 31, 2019, respectively) | 45,395,000 | 48,212,000 |
Equity securities at fair value | 23,080,000 | 18,810,000 |
Stock in Federal Home Loan Bank and Federal Reserve Bank | 45,273,000 | 39,078,000 |
Loans held for sale | 7,671,000 | 7,386,000 |
Total loans | 7,043,338,000 | 6,976,704,000 |
Less: Allowance for loan losses | 68,211,000 | 71,982,000 |
Net loans | 6,975,127,000 | 6,904,722,000 |
Premises and equipment, net | 43,544,000 | 44,527,000 |
Goodwill | 57,607,000 | 57,607,000 |
Intangible assets, net | 9,637,000 | 10,352,000 |
Fees receivable | 4,249,000 | 4,095,000 |
Accrued interest receivable | 24,054,000 | 24,175,000 |
Deferred income taxes, net | 5,630,000 | 11,383,000 |
Right-of-use assets | 98,896,000 | 102,075,000 |
Other assets | 351,283,000 | 287,316,000 |
Total assets | 8,746,326,000 | 8,830,501,000 |
Liabilities: | ||
Deposits | 6,835,572,000 | 7,241,476,000 |
Securities sold under agreements to repurchase | 45,319,000 | 53,398,000 |
Federal funds purchased | 145,000,000 | 0 |
Federal Home Loan Bank borrowings | 491,254,000 | 350,829,000 |
Junior subordinated debentures | 106,363,000 | 106,363,000 |
Lease liabilities | 113,574,000 | 117,214,000 |
Other liabilities | 180,452,000 | 140,820,000 |
Total liabilities | 7,917,534,000 | 8,010,100,000 |
Redeemable Noncontrolling Interests | 0 | 1,383,000 |
Shareholders’ Equity: | ||
Common stock, $1.00 par value; authorized: 170,000,000 shares; issued and outstanding: 81,800,486 shares at March 31, 2020 and 83,265,674 shares at December 31, 2019 | 81,800,000 | 83,266,000 |
Additional paid-in capital | 593,167,000 | 600,708,000 |
Retained earnings | 131,761,000 | 127,469,000 |
Accumulated other comprehensive income/(loss) | 22,064,000 | 7,575,000 |
Total shareholders’ equity | 828,792,000 | 819,018,000 |
Total liabilities, redeemable noncontrolling interests and shareholders’ equity | $ 8,746,326,000 | $ 8,830,501,000 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) Parentheticals - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Investment securities available-for-sale at amortized cost | $ 961,351 | $ 966,900 |
Investment securities held-to-maturity at fair value | $ 46,096 | $ 47,949 |
Common stock, par value (in dollars per share) | $ 1 | |
Common stock, shares authorized (in shares) | 170,000,000 | |
Common stock, shares issued (in shares) | 81,800,486 | 83,265,674 |
Common stock, shares, outstanding (in shares) | 81,800,486 | 83,265,674 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest and dividend income: | ||
Loans | $ 66,358 | $ 69,933 |
Taxable investment securities | 868 | 1,185 |
Non-taxable investment securities | 1,998 | 1,901 |
Mortgage-backed securities | 2,787 | 2,897 |
Short-term investments and other | 1,071 | 908 |
Total interest and dividend income | 73,082 | 76,824 |
Interest expense: | ||
Deposits | 12,796 | 14,058 |
Federal Home Loan Bank borrowings | 2,034 | 2,780 |
Junior subordinated debentures | 917 | 1,121 |
Repurchase agreements and other short-term borrowings | 78 | 527 |
Total interest expense | 15,825 | 18,486 |
Net interest income | 57,257 | 58,338 |
Provision/(credit) for loan losses | 16,962 | (1,426) |
Net interest income after provision/(credit) for loan losses | 40,295 | 59,764 |
Fees and other income: | ||
Gain on OREO, net | 0 | 91 |
Other | (1,365) | 877 |
Total fees and other income | 21,521 | 25,248 |
Operating expense: | ||
Salaries and employee benefits | 35,096 | 35,726 |
Occupancy and equipment | 7,646 | 8,348 |
Information systems | 6,725 | 5,860 |
Professional services | 3,601 | 3,560 |
Marketing and business development | 1,890 | 1,085 |
Amortization of intangibles | 715 | 672 |
FDIC insurance | 0 | 660 |
Restructuring | 0 | 1,646 |
Other | 5,235 | 2,996 |
Total operating expense | 60,908 | 60,553 |
Income before income taxes | 908 | 24,459 |
Income tax expense | 102 | 4,917 |
Net income before attribution to noncontrolling interests | 806 | 19,542 |
Less: Net income attributable to noncontrolling interests | 6 | 100 |
Net income attributable to the Company | 800 | 19,442 |
Adjustments to net income attributable to the Company to arrive at net income attributable to common shareholders | 414 | 1,557 |
Net income attributable to common shareholders, treasury stock method | $ 1,214 | $ 20,999 |
Basic earnings per share attributable to common shareholders: | ||
Total attributable to common shareholders (in dollars per share) | $ 0.01 | $ 0.25 |
Weighted average basic common shares outstanding (in shares) | 83,005,064 | 83,285,095 |
Diluted earnings per share attributable to common shareholders: | ||
Total attributable to common shareholders (in dollars per share) | $ 0.01 | $ 0.25 |
Weighted average diluted common shares outstanding (in shares) | 83,318,041 | 84,010,450 |
Wealth management and trust fees | ||
Fees and other income: | ||
Fees | $ 18,371 | $ 19,058 |
Investment management fees | ||
Fees and other income: | ||
Fees | 1,925 | 2,650 |
Other banking fee income | ||
Fees and other income: | ||
Fees | 2,490 | 2,499 |
Gain on sale of loans, net | ||
Fees and other income: | ||
Fees | $ 100 | $ 73 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income attributable to the Company | $ 800 | $ 19,442 |
Other comprehensive income, net of tax: | ||
Net unrealized gain/(loss) on securities available-for-sale | 14,489 | 11,568 |
Unrealized gain/(loss) on cash flow hedges | 0 | (27) |
Reclassification adjustment for net realized (gain)/loss included in net income | 0 | (220) |
Net unrealized gain/(loss) on cash flow hedges | 0 | (247) |
Other comprehensive income, net of tax | 14,489 | 11,321 |
Total comprehensive income attributable to the Company, net | $ 15,289 | $ 30,763 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | |
Beginning Balance at Dec. 31, 2018 | $ 753,954 | $ 83,656 | $ 600,196 | $ 87,821 | $ (17,719) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income attributable to the Company | 19,442 | 19,442 | ||||
Other comprehensive income/(loss), net | 11,321 | 11,321 | ||||
Dividends paid to common shareholders | (10,108) | (10,108) | ||||
Net proceeds from issuance of: | ||||||
Net proceeds from issuance of common stock | 980 | 104 | 876 | |||
Net proceeds from issuance of inventive stock grant shares canceled or forfeited and withheld for employee taxes | 170 | 4 | 166 | |||
Amortization of stock compensation and employee stock purchase plan | 1,352 | 1,352 | ||||
Stock options exercised | 50 | 10 | 40 | |||
Other equity adjustments | 1,658 | 1,658 | ||||
Ending Balance at Mar. 31, 2019 | 778,819 | 83,774 | 604,288 | 97,155 | (6,398) | |
Beginning Balance at Dec. 31, 2019 | 819,018 | 83,266 | 600,708 | 127,469 | 7,575 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Impact due to change in accounting principles | [1] | 13,492 | 13,492 | |||
Net income attributable to the Company | 800 | 800 | ||||
Other comprehensive income/(loss), net | 14,489 | 14,489 | ||||
Dividends paid to common shareholders | (10,000) | (10,000) | ||||
Repurchase of shares of common stock | (12,807) | (1,565) | (11,242) | |||
Net proceeds from issuance of: | ||||||
Net proceeds from issuance of common stock | 920 | 88 | 832 | |||
Net proceeds from issuance of inventive stock grant shares canceled or forfeited and withheld for employee taxes | 62 | 5 | 57 | |||
Amortization of stock compensation and employee stock purchase plan | 1,348 | 1,348 | ||||
Stock options exercised | 55 | 7 | 48 | |||
Other equity adjustments | 1,415 | (1) | 1,416 | |||
Ending Balance at Mar. 31, 2020 | $ 828,792 | $ 81,800 | $ 593,167 | $ 131,761 | $ 22,064 | |
[1] | Impact due to the adoption of ASU 2016-13, Financial Instruments (Topic 326) (“ASU 2016-13”). See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 15: Recent Accounting Pronouncements.” |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) Parentheticals - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.12 | $ 0.12 |
Repurchase of common stock, number of common shares (in shares) | 1,565,060 | |
Shares of common stock issued (in shares) | 88,328 | 103,991 |
Stock forfeited (in shares) | 2,976 | |
Shares withheld for employee taxes (in shares) | 964 | 13,911 |
Incentive stock grant (in shares) | 5,539 | 20,595 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income attributable to the Company | $ 800 | $ 19,442 |
Adjustments to arrive at net income: | ||
Net income attributable to noncontrolling interests | 6 | 100 |
Net income before attribution to noncontrolling interests | 806 | 19,542 |
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | ||
Depreciation and amortization | 6,345 | 5,933 |
Net income attributable to noncontrolling interests | (6) | (100) |
Stock compensation, net of cancellations | 1,421 | 1,677 |
Provision/(credit) for loan losses | 16,962 | (1,426) |
Loans originated for sale | (15,324) | (6,796) |
Proceeds from sale of loans held for sale | 15,127 | 9,401 |
Deferred income tax expense/(benefit) | (5,731) | (523) |
Decrease/(increase) in right-of-use assets | 3,179 | 3,817 |
Increase/(decrease) in operating lease liabilities | (3,640) | (4,102) |
Net decrease/(increase) in other operating activities | (27,617) | (19,247) |
Net cash provided by/(used in) operating activities | (8,478) | 8,176 |
Investment securities available-for-sale: | ||
Purchases | (8,874) | 0 |
Maturities, calls, redemptions, and principal payments | 12,472 | 26,265 |
Investment securities held-to-maturity: | ||
Principal payments | 2,730 | 2,860 |
Equity securities at fair value: | ||
Transfers out | (19,713) | (15,149) |
Transfers in | 15,443 | 21,886 |
(Investments)/distributions in trusts, net | 569 | 853 |
Contingent considerations from divestitures | 1,277 | 836 |
Redemption of Federal Home Loan Bank and Federal Reserve Bank stock | 2,210 | |
Purchase of Federal Home Loan Bank and Federal Reserve Bank stock | (6,195) | |
Net increase in portfolio loans | (67,890) | (34,670) |
Proceeds from recoveries of loans previously charged off | 180 | 492 |
Proceeds from sale of OREO | 0 | 492 |
Capital expenditures | (1,975) | (750) |
Net cash provided by/(used in) investing activities | (71,976) | 5,325 |
Cash flows from financing activities: | ||
Net increase/(decrease) in deposits | (405,904) | (1,325) |
Net increase/(decrease) in securities sold under agreements to repurchase | (8,079) | 21,401 |
Net increase/(decrease) in federal funds purchased | 145,000 | (250,000) |
Net increase/(decrease) in short-term Federal Home Loan Bank borrowings | 115,000 | 10,000 |
Advances of long-term Federal Home Loan Bank borrowings | 175,000 | 190,000 |
Repayments of long-term Federal Home Loan Bank borrowings | (149,575) | (5,074) |
Dividends paid to common shareholders | (10,000) | (10,108) |
Repurchase of common stock | (12,807) | 0 |
Proceeds from stock option exercises | 55 | 50 |
Proceeds from issuance of common stock | 920 | 980 |
Tax withholding for share based compensation awards | (11) | (155) |
Distributions paid to noncontrolling interests | (6) | (100) |
Other equity adjustments | 96 | (218) |
Net cash provided by/(used in) financing activities | (150,311) | (44,549) |
Net increase/(decrease) in cash and cash equivalents | (230,765) | (31,048) |
Cash and cash equivalents at beginning of year | 292,479 | 127,259 |
Cash and cash equivalents at end of period | 61,714 | 96,211 |
Supplemental disclosure of cash flow items: | ||
Cash paid for interest | 15,628 | 16,775 |
Cash paid for income taxes, (net of refunds received) | 872 | 1,029 |
Change in unrealized gain/(loss) on available-for-sale securities, net of tax | 14,489 | 11,568 |
Change in unrealized gain/(loss) on cash flow hedges, net of tax | 0 | (247) |
Non-cash transactions: | ||
Loans charged off | $ (528) | $ (564) |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Boston Private Financial Holdings, Inc. (the “Company” or “BPFH”), is a bank holding company (the “Holding Company”) with two reportable segments: (i) Private Banking and (ii) Wealth Management and Trust. The Private Banking segment is comprised of the banking operations of Boston Private Bank & Trust Company (the “Bank” or “Boston Private Bank”), a trust company chartered by the Commonwealth of Massachusetts, whose deposits are insured by the Federal Deposit Insurance Corporation (the “FDIC”), and a wholly-owned subsidiary of the Company. Boston Private Bank is a member of the Federal Reserve Bank of Boston. Boston Private Bank primarily operates in three geographic markets: New England, Northern California, and Southern California. The Private Banking segment is principally engaged in providing private banking services to high net worth individuals, privately-owned businesses and partnerships, and nonprofit organizations. In addition, the Private Banking segment is an active provider of financing for affordable housing, first-time homebuyers, economic development, social services, community revitalization and small businesses. The Wealth Management and Trust segment is comprised of Boston Private Wealth LLC (“Boston Private Wealth”), a registered investment adviser (“RIA”) and wholly-owned subsidiary of the Bank, and the trust operations of Boston Private Bank. The Wealth Management and Trust segment offers planning-based financial strategies, wealth management, family office, financial planning, tax planning, and trust services to individuals, families, institutions, and nonprofit institutions. On September 1, 2019, KLS Professional Advisors Group, LLC (“KLS”) merged with and into Boston Private Wealth. The results of KLS were 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. Prior to the third quarter of 2019, the Affiliate Partners segment was comprised of two affiliates: KLS and Dalton, Greiner, Hartman, Maher & Co., LLC (“DGHM”), each of which are RIAs. With the integration of KLS into Boston Private Wealth in the third quarter of 2019, the Company reorganized its segment reporting structure to align with how its financial performance and strategy are reviewed and managed. The results of KLS are included in the results of Boston Private Wealth within the Wealth Management and Trust segment, and the results of DGHM are included within the Holding Company and Eliminations for all periods presented. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 3: Asset Sales and Divestitures” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 for additional information. The Company conducts substantially all of its business through its two reportable segments. All significant intercompany accounts and transactions have been eliminated in consolidation, and the portion of income allocated to the owners other than the Company is included in “Net income attributable to noncontrolling interests” in the Consolidated Statements of Operations for the periods owned. Redeemable noncontrolling interests in the Consolidated Balance Sheets reflect the maximum redemption value of agreements with the owners of DGHM. The unaudited interim Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include all necessary adjustments of a normal recurring nature, which, in the opinion of management, are required for a fair presentation of the results of operations and financial condition of the Company. The interim results of consolidated operations are not necessarily indicative of the results for the entire year. The information in this report should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the Securities and Exchange Commission (“SEC”). Prior period amounts are reclassified whenever necessary to conform to the current period presentation. With the integration of KLS into Boston Private Wealth and the related change to reportable segments, fee revenue from KLS is reported in Wealth management and trust fees for all periods on the Consolidated Statements of Operations, which was presented as Wealth advisory fees in prior periods. The Company’s significant accounting policies are described in Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC. For interim reporting purposes, the Company follows the same significant accounting policies, except for the following new accounting pronouncements from the Financial Accounting Standards Board (the “FASB”) that were adopted effective January 1, 2020: • In June 2016, the FASB issued ASU 2016-13. Throughout 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”); ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief (“ASU 2019-05”); 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”). This update and related amendments to Topic 326 are 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 reasonable and supportable forecast to inform credit loss estimates. This ASU is effective for fiscal years beginning after December 15, 2019. The Company adopted this update on January 1, 2020 utilizing a modified retrospective approach. On adoption of ASU 2016-13 on January 1, 2020, the Company recognized a decrease in the allowance for loan losses of $20.4 million, and an increase in the reserve for unfunded loan commitments of $1.4 million. The net, after-tax impact of the decrease in the allowance for loan losses and the increase in the reserve for unfunded loan commitments was an increase to Retained earnings of $13.5 million shown in the Consolidated Statements of Changes in Shareholders’ Equity. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The treasury stock method of calculating earnings per share (“EPS”) is presented below for the three months ended March 31, 2020 and 2019. The following tables present the computations of basic and diluted EPS: Three months ended March 31, 2020 2019 (In thousands, except share and per share data) Basic earnings per share - Numerator: Net income before attribution to noncontrolling interests $ 806 $ 19,542 Less: Net income attributable to noncontrolling interests 6 100 Net income attributable to the Company 800 19,442 Decrease in noncontrolling interests’ redemption values (1) 414 1,557 Total adjustments to income attributable to common shareholders 414 1,557 Net income attributable to common shareholders, treasury stock method $ 1,214 $ 20,999 Basic earnings per share - Denominator: Weighted average basic common shares outstanding 83,005,064 83,285,095 Per share data - Basic earnings per share: Total attributable to common shareholders $ 0.01 $ 0.25 Three months ended March 31, 2020 2019 (In thousands, except share and per share data) Diluted earnings per share - Numerator: Net income attributable to common shareholders, after assumed dilution $ 1,214 $ 20,999 Diluted earnings per share - Denominator: Weighted average basic common shares outstanding 83,005,064 83,285,095 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) 312,977 725,355 Dilutive common shares 312,977 725,355 Weighted average diluted common shares outstanding (2) 83,318,041 84,010,450 Per share data - Diluted earnings per share: Total attributable to common shareholders $ 0.01 $ 0.25 Dividends per share declared and paid on common stock $ 0.12 $ 0.12 _____________________ (1) See Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with the FASB Accounting Standards Codification Distinguishing Liabilities from Equity (“ASC 480”), an increase in redemption value from period to period reduces income attributable to common shareholders. Decreases in redemption value from period to period increase income attributable to common shareholders, but only to the extent that the cumulative change in redemption value remains a cumulative increase since adoption of this standard in the first quarter of 2009. (2) The diluted EPS computations for the three months ended March 31, 2020 and 2019 do not assume the conversion, exercise, or contingent issuance of the following shares for the following periods because the result would have been anti-dilutive for the periods indicated. As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows: Three months ended March 31, 2020 2019 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 1,254 796 Total shares excluded due to exercise price exceeding the average market price of common shares during the period 1,254 796 |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2020 | |
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 conducts business under the name of Boston Private Bank & Trust Company in all markets. The Bank is chartered by the Commonwealth of Massachusetts and is insured by the FDIC. The Bank is principally engaged in providing private banking services to high net worth individuals, privately-owned businesses and partnerships, and nonprofit organizations. In addition, the Bank is an active provider of financing for affordable housing, first-time homebuyers, economic development, social services, community revitalization and small businesses. Wealth Management and Trust The Wealth Management and Trust segment is comprised of the trust operations of the Bank and the operations of Boston Private Wealth. On September 1, 2019, KLS merged into Boston Private Wealth. As a result, the results of KLS are included in the results of Boston Private Wealth within the Wealth Management and Trust segment for all periods presented. The Wealth Management and Trust segment offers planning-based financial strategies, wealth management, family office, financial planning, tax planning, and trust services to individuals, families, institutions, and nonprofit institutions. The Wealth Management and Trust segment operates in New England, New York, Southeast Florida, Northern California and Southern California. Changes to Segment Reporting 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 included in the results of Boston Private Wealth within the Wealth Management and Trust segment, and the results of DGHM are included in Holding Company and Eliminations for all periods presented. Measurement of Segment Profit and Assets The accounting policies of the segments are the same as those described in Part I. Item 1. "Notes to Unaudited Consolidated Financial Statements - Note 1: Basis of Presentation and Summary of Significant Accounting Policies." Reconciliation of Reportable Segment Items The following tables present a reconciliation of the revenues, profits, assets, and other significant items of reportable segments as of and for the three months ended March 31, 2020 and 2019. Three months ended March 31, 2020 2019 Private Banking (1) (In thousands) Net interest income $ 58,090 $ 59,337 Fees and other income 1,108 3,258 Total revenue 59,198 62,595 Provision/(credit) for loan losses 16,962 (1,426) Operating expense (2) 42,588 41,317 Income/(loss) before income taxes (352) 22,704 Income tax expense/(benefit) (931) 4,430 Net income before attribution to noncontrolling interests 579 18,274 Net income attributable to the Company $ 579 $ 18,274 Assets $ 8,692,069 $ 8,481,160 Amortization of intangibles $ 77 $ — Depreciation $ 2,626 $ 2,670 Three months ended March 31, 2020 2019 Wealth Management and Trust (1) (In thousands) Net interest income $ 72 $ 106 Fees and other income 18,485 19,126 Total revenue 18,557 19,232 Operating expense (2) 15,449 15,567 Income before income taxes 3,108 3,665 Income tax expense 1,074 1,194 Net income before attribution to noncontrolling interests 2,034 2,471 Net income attributable to the Company $ 2,034 $ 2,471 Assets $ 143,998 $ 147,771 Amortization of intangibles $ 638 $ 672 Depreciation $ 294 $ 367 Three months ended March 31, 2020 2019 Holding Company and Eliminations (1) (In thousands) Net interest income (3) $ (905) $ (1,105) Fees and other income 1,928 2,864 Total revenue 1,023 1,759 Operating expense 2,871 3,669 Income/(loss) before income taxes (1,848) (1,910) Income tax expense/(benefit) (41) (707) Net income/(loss) before attribution to noncontrolling interests (1,807) $ (1,203) Noncontrolling interests 6 100 Net income/(loss) attributable to the Company $ (1,813) $ (1,303) Assets (including eliminations) $ (89,741) $ (56,788) Depreciation $ 39 $ 47 Three months ended March 31, 2020 2019 Total Company (1) (In thousands) Net interest income $ 57,257 $ 58,338 Fees and other income 21,521 25,248 Total revenue 78,778 83,586 Provision/(credit) for loan losses 16,962 (1,426) Operating expense 60,908 60,553 Income before income taxes 908 24,459 Income tax expense 102 4,917 Net income before attribution to noncontrolling interests 806 19,542 Noncontrolling interests 6 100 Net income attributable to the Company $ 800 $ 19,442 Assets $ 8,746,326 $ 8,572,143 Amortization of intangibles $ 715 $ 672 Depreciation $ 2,959 $ 3,084 _____________________ (1) Due to rounding, the sum of individual segment results may not add up to the Total Company results. (2) Operating expense related to the Private Banking and Wealth Management and Trust segments includes restructuring expense for the three months ended March 31, 2019 of $1.3 million and $0.4 million, respectively. (3) Interest expense on junior subordinated debentures is included in Holding Company and Eliminations. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Investments | Investments The following table presents a summary of investment securities at March 31, 2020 and December 31, 2019: Amortized Unrealized Fair Gains Losses (In thousands) At March 31, 2020 Available-for-sale securities at fair value: U.S. government and agencies $ 19,957 $ 1,130 $ — $ 21,087 Government-sponsored entities 154,844 5,598 — 160,442 Municipal bonds 319,844 12,784 (128) 332,500 Mortgage-backed securities (1) 466,706 12,670 (239) 479,137 Total $ 961,351 $ 32,182 $ (367) $ 993,166 Held-to-maturity securities at amortized cost: Mortgage-backed securities (1) $ 45,395 $ 731 $ (30) $ 46,096 Total $ 45,395 $ 731 $ (30) $ 46,096 Equity securities at fair value: Money market mutual funds (2) $ 23,080 $ — $ — $ 23,080 Total $ 23,080 $ — $ — $ 23,080 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 _____________________ (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 Company adopted ASU 2016-13 as of January 1, 2020. Under ASU 2016-13, the Company is required to assess the investment portfolio for credit impairment. The Company considers the held-to-maturity portfolio to meet the "zero loss" expectation requirements. All held-to-maturity securities owned by the Company are AAA rated mortgage-backed securities that are backed by the guarantees of U.S. government, U.S. government agencies or government sponsored entities. The Company has experienced zero losses for these securities. In addition, as of March 31, 2020, no held-to-maturity securities were past due. Therefore, no credit allowance was recorded on the held-to-maturity investment portfolio. The Company evaluated the available-for-sale investment securities on a security by security basis and identified no security with impairment. Therefore, no credit allowance was booked on the available-for-sale investment portfolio. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 15: Recent Accounting Pronouncements” for additional information on ASU 2016-13. The following table presents the maturities of available-for-sale investment securities, based on contractual maturity, as of March 31, 2020. Certain securities are callable before their final maturity. Additionally, certain securities (such as mortgage-backed securities) are shown within the table below based on their final (contractual) maturity, but due to prepayments and amortization are expected to have shorter lives. Available-for-sale Securities Amortized Fair (In thousands) Within one year $ 33,686 $ 33,916 After one, but within five years 312,665 322,256 After five, but within ten years 230,955 239,899 Greater than ten years 384,045 397,095 Total $ 961,351 $ 993,166 The following table presents the maturities of held-to-maturity investment securities, based on contractual maturity, as of March 31, 2020. Held-to-maturity Securities Amortized Fair (In thousands) After five, but within ten years $ 37,086 $ 37,569 Greater than ten years 8,309 8,527 Total $ 45,395 $ 46,096 The following table presents the maturities of equity securities, b ased on contractual maturity, as of March 31, 2020. Equity Securities Amortized Fair (In thousands) Within one year $ 23,080 $ 23,080 Total $ 23,080 $ 23,080 During the three months ended March 31, 2020 and 2019, there were no sales of available-for-sale, held-to- maturity, or equity securities. The following tables present information regarding securities at March 31, 2020 and December 31, 2019 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 # of (In thousands, except number of securities) March 31, 2020 Available-for-sale securities Municipal bonds $ 14,009 $ (128) $ — $ — $ 14,009 $ (128) 3 Mortgage-backed securities (1) 3,568 (25) 18,972 (214) 22,540 (239) 36 Total $ 17,577 $ (153) $ 18,972 $ (214) $ 36,549 $ (367) 39 Held-to-maturity securities Mortgage-backed securities (1) $ — $ — $ 4,442 $ (30) $ 4,442 $ (30) 2 Total $ — $ — $ 4,442 $ (30) $ 4,442 $ (30) 2 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized # 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 _____________________ (1) All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities. As of March 31, 2020, the mortgage-backed securities in the first table above had current Standard and Poor’s credit rating of at least AAA. As of March 31, 2020, the municipal bonds in the first table above had a current Standard and Poor’s credit rating of at least AAA. As of March 31, 2020, the Company determined that the unrealized losses on investments, since their purchase, is primarily attributed to changes in interest rates and not as a result of the deterioration of credit quality. As of March 31, 2020, the Company had no intent to sell any securities in an unrealized loss position and it is not more likely than not that the Company would be forced to sell any of these securities prior to the full recovery of all unrealized loss amounts. Other investments The Company invests in low-income housing tax credits, which are included in other assets, to encourage private capital investment in the construction and rehabilitation of low-income housing. The Company makes these investments as an indirect subsidy that allows investors, such as the Company, in a flow-through limited liability entity, such as limited partnerships or limited liability companies that manage or invest in qualified affordable housing projects, to receive the benefits of the tax credits allocated to the entity that owns the qualified affordable housing project. The Company also holds partnership interests in venture capital funds formed to provide financing to small businesses and to promote community development. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019, aggregated by the level in the fair value hierarchy within which those measurements fall: As of March 31, 2020 Fair value measurements at reporting date using: Quoted prices in Significant Significant (In thousands) Assets: Available-for-sale securities: U.S. government and agencies $ 21,087 $ — $ 21,087 $ — Government-sponsored entities 160,442 — 160,442 — Municipal bonds 332,500 — 332,500 — Mortgage-backed securities 479,137 — 479,137 — Total available-for-sale securities 993,166 — 993,166 — Equity securities 23,080 23,080 — — Derivatives - interest rate customer swaps 93,391 — 93,391 — Derivatives - risk participation agreement 46 — 46 — Trading securities held in the “rabbi trust” (1) 5,550 5,550 — — Liabilities: Derivatives - interest rate customer swaps $ 94,437 $ — $ 94,437 $ — Derivatives - risk participation agreement 480 — 480 — Deferred compensation “rabbi trust” (1) 5,550 5,550 — — Fair value measurements at reporting date using: As of December 31, 2019 Quoted prices in Significant 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 — — _____________________ (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 March 31, 2020 and December 31, 2019, 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 March 31, 2020 or December 31, 2019 were categorized as Level 3. As of March 31, 2020 and December 31, 2019, 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 may utilize 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 March 31, 2020 and December 31, 2019. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 8: Derivatives and Hedging Activities” for further details. To comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Counterparty exposure is evaluated by netting positions that are subject to master netting agreements, as well as considering the amount of collateral securing the position. The Company has determined that the majority of inputs used to value its derivatives are within Level 2. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy as of March 31, 2020 and December 31, 2019. Trading securities held in the rabbi trust consist of publicly traded mutual fund investments that are valued at prices quoted in active markets. Therefore, they have been categorized as Level 1 as of March 31, 2020 and December 31, 2019. 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 March 31, 2020 and December 31, 2019. There were no Level 3 assets valued on a recurring basis at March 31, 2020 or December 31, 2019. 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 March 31, 2020 and 2019, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall. As of March 31, 2020 Fair value measurements at reporting date using: Gain (losses) from fair value changes Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Three months ended March 31, 2020 (In thousands) Assets: Impaired loans (1) $ 97 $ — $ — $ 97 $ 21 _____________________ (1) Collateral-dependent impaired loans held as of March 31, 2020 that had write-downs or recoveries in fair value or whose specific reserve changed during the three months ended March 31, 2020. As of March 31, 2019 Fair value measurements at reporting date using: Gain (losses) from fair value changes Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Three months ended March 31, 2019 (In thousands) Assets: Impaired loans (1) $ 957 $ — $ — $ 957 $ 372 _____________________ (1) Collateral-dependent impaired loans held as of March 31, 2019 that had write-downs or recoveries in fair value or whose specific reserve changed during the three months ended March 31, 2019. 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 March 31, 2020 Fair Value Valuation Unobservable Range of Weighted (In thousands) Impaired Loans $ 97 Appraisals of Collateral Discount for costs to sell 10% - 10% 10% Appraisal adjustments —% —% As of March 31, 2019 Fair Value Valuation Unobservable Range of Weighted (In thousands) Impaired Loans $ 957 Appraisals of Collateral Discount for costs to sell —% - 6% 1% Appraisal adjustments —% —% Impaired loans include those loans that were adjusted to the fair value of underlying collateral as required under ASC 310, Receivables . The amount does not include impaired loans that are measured based on expected future cash flows discounted at the respective loan’s original effective interest rate, as that amount is not considered a fair value measurement. The Company uses appraisals, which management may adjust to reflect estimated fair value declines, or may apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property or consideration of broker quotes. The appraisers use a market, income, and/or a cost approach in determining the value of the collateral. Therefore they have been categorized as a Level 3 measurement. The following tables present the carrying values and fair values of the Company’s financial instruments that are not measured at fair value on a recurring basis: As of March 31, 2020 Book Value Fair Value Quoted prices Significant Significant (In thousands) FINANCIAL ASSETS: Cash and cash equivalents $ 61,714 $ 61,714 $ 61,714 $ — $ — Investment securities held-to-maturity 45,395 46,096 — 46,096 — Loans held for sale 7,671 7,724 — 7,724 — Loans, net 6,975,127 6,752,894 — — 6,752,894 Other financial assets 73,576 73,576 — 73,576 — FINANCIAL LIABILITIES: Deposits 6,835,572 6,838,860 — 6,838,860 — Securities sold under agreements to repurchase 45,319 45,319 — 45,319 — Federal funds purchased 145,000 145,000 — 145,000 — Federal Home Loan Bank borrowings 491,254 493,532 — 493,532 — Junior subordinated debentures 106,363 96,363 — — 96,363 Other financial liabilities 2,154 2,154 — 2,154 — 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 — The estimated fair values have been determined by using available quoted market information or other appropriate valuation methodologies. The aggregate fair value amounts presented above do not represent the underlying value of the financial assets and liabilities of the Company taken as a whole as they do not reflect any premium or discount the Company might recognize if the assets were sold or the liabilities sold, settled, or redeemed. An excess of fair value over book value on financial assets represents a premium, or gain, the Company might recognize if the assets were sold, while an excess of book value over fair value on financial liabilities represents a premium, or gain, the Company might recognize if the liabilities were sold, settled, or redeemed prior to maturity. Conversely, losses would be recognized if assets were sold where the book value exceeded the fair value or liabilities were sold where the fair value exceeded the book value. The fair value estimates provided are made at a specific point in time, based on relevant market information and the characteristics of the financial instrument. The estimates do not provide for any premiums or discounts that could result from concentrations of ownership of a financial instrument. Because no active market exists for some of the Company’s financial instruments, certain fair value estimates are based on subjective judgments regarding current economic conditions, risk characteristics of the financial instruments, future expected loss experience, prepayment assumptions, and other factors. The resulting estimates involve uncertainties and are considered best estimates. Changes made to any of the underlying assumptions could significantly affect the estimates. Cash and cash equivalents The carrying value reported in the balance sheet for cash and cash equivalents approximates fair value due to the short-term nature of their maturities and these assets are classified as Level 1 measurements. Investment securities held-to-maturity Investment securities held-to-maturity consist of mortgage-backed securities as of March 31, 2020 and December 31, 2019. The mortgage-backed securities are fixed income instruments that are not quoted on an exchange, but may be traded in active markets. The fair value of these securities is based on quoted market prices obtained from external pricing services. The principal market for our securities portfolio is the secondary institutional market, with an exit price that is predominantly reflective of bid level pricing in that market. Accordingly, held-to-maturity mortgage-backed securities are classified as Level 2. There were no transfers of the Company's financial instruments that are not measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019. 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. The Company estimates the fair value of loans using the exit price notion under ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which includes identifying an exit price using current market information for origination rates and making certain adjustments to incorporate credit risk, transaction costs and other adjustments utilizing publicly available rates and indexes. Loans, net are included in the Level 3 fair value category based upon the inputs and valuation techniques used. Other financial assets Other financial assets consist of accrued interest and fees receivable, and stock in the Federal Home Loan Bank of Boston (“FHLB”) and the Federal Reserve Bank (“FRB”), for which the carrying amount approximates fair value, and these assets are classified as Level 2 measurements. Deposits The fair values reported for transaction accounts (demand, NOW, savings, and money market) equal their respective book values reported on the balance sheet and these liabilities are classified as Level 2 measurements. The fair values disclosed are, by definition, equal to the amount payable on demand at the reporting date. The fair values for certificates of deposit are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on certificates of deposit with similar remaining maturities and these liabilities are classified as Level 2 measurements. Securities sold under agreements to repurchase The fair values of securities sold under agreements to repurchase are estimated based on contractual cash flows discounted at the Bank’s incremental borrowing rate for FHLB borrowings with similar maturities and these liabilities have been classified as Level 2 measurements. Federal funds purchased The carrying amounts of federal funds purchased, if any, approximate fair value due to their short-term nature and therefore these funds have been classified as Level 2 measurements. Federal Home Loan Bank borrowings The fair values reported for FHLB borrowings are estimated based on the discounted value of contractual cash flows. The discount rate used is based on the Bank’s estimated current incremental borrowing rate for FHLB borrowings of similar maturities and therefore these borrowings have been classified as Level 2 measurements. Junior subordinated debentures The fair values of the junior subordinated debentures issued by Boston Private Capital Trust I and Boston Private Capital Trust II are estimated using Level 3 inputs such as the interest rates on these securities, current rates for similar debt, a consideration for illiquidity of trading in the debt, and regulatory changes that would result in an unfavorable change in the regulatory capital treatment of this type of debt. Other financial liabilities Other financial liabilities consists of accrued interest payable for which the carrying amount approximates fair value and is classified as Level 2 measurements. Financial instruments with off-balance sheet risk The Bank’s commitments to originate loans and for unused lines and outstanding letters of credit are primarily at market interest rates and therefore, the carrying amount approximates fair value. |
Loan Portfolio and Credit Quali
Loan Portfolio and Credit Quality | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loan Portfolio and Credit Quality | Loan Portfolio and Credit Quality The Bank’s lending activities are conducted principally in the regions of New England, 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: March 31, 2020 December 31, 2019 (In thousands) Commercial and industrial $ 670,744 $ 694,034 Commercial tax-exempt 445,319 447,927 Commercial real estate 2,626,299 2,551,274 Construction and land 238,293 225,983 Residential 2,841,926 2,839,155 Home equity 89,350 83,657 Consumer and other 131,407 134,674 Total $ 7,043,338 $ 6,976,704 The following table presents nonaccrual loans receivable by class of receivable as of the dates indicated: March 31, 2020 December 31, 2019 (In thousands) Commercial and industrial $ 1,371 $ 582 Commercial tax-exempt — — Commercial real estate 5,392 — Residential 16,074 13,993 Home equity 1,476 1,525 Consumer and other 1 3 Total $ 24,314 $ 16,103 The Bank’s policy is to discontinue the accrual of interest on a loan when the collectability of principal or interest is in doubt. In certain instances, although infrequent, loans that have become 90 days or more past due may remain on accrual status if the value of the collateral securing the loan is sufficient to cover principal and interest and the loan is in the process of collection. There were no loans 90 days or more past due, but still accruing, as of both March 31, 2020 and December 31, 2019. The Bank’s policy for returning a loan to accrual status requires the loan to be brought current and for the client to show a history of making timely payments (generally six consecutive months). For troubled debt restructured loans (“TDRs”), a return to accrual status generally requires timely payments for a period of six months in accordance with the restructured loan terms, along with meeting other criteria. The following tables show the payment status of loans receivable by class of receivable as of the dates indicated: March 31, 2020 Accruing Past Due Nonaccrual Loans 30-59 Days Past Due 60-89 Days Past Due Total Accruing Past Due Current 30-89 Days Past Due 90 Days or Total Non-Accrual Loans Current Accruing Loans Total (In thousands) Commercial and industrial $ 1,401 $ 92 $ 1,493 $ 381 $ — $ 990 $ 1,371 $ 667,880 $ 670,744 Commercial tax-exempt — — — — — — — 445,319 445,319 Commercial real estate — — — 5,392 — — 5,392 2,620,907 2,626,299 Construction and land — — — — — — — 238,293 238,293 Residential 12,967 — 12,967 9,024 2,056 4,994 16,074 2,812,885 2,841,926 Home equity — 319 319 180 — 1,296 1,476 87,555 89,350 Consumer and other 73 — 73 1 — — 1 131,333 131,407 Total $ 14,441 $ 411 $ 14,852 $ 14,978 $ 2,056 $ 7,280 $ 24,314 $ 7,004,172 $ 7,043,338 December 31, 2019 Accruing Past Due Nonaccrual Loans 30-59 Days Past Due 60-89 Days Past Due Total Accruing Past Due Current 30-89 Days Past Due 90 Days or Greater Past Due Total Non-Accrual Loans Current Accruing Loans Total Loans Receivable (In thousands) Commercial and industrial $ 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 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. There could be an increase in these situations as the economic conditions brought on by the COVID-19 pandemic could lead to a decline in collateral values. 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 COVID-19 pandemic has limited the Bank’s ability to obtain updated appraisals. In lieu of appraisals, the Bank may use other valuation techniques in the short-term. The past due status of a loan is determined in accordance with its contractual repayment terms. All loan types are reported past due when one scheduled payment is due and unpaid for 30 days or more. Credit Quality Indicators The Bank uses a risk rating system to monitor the credit quality of its loan portfolio. Loan classifications are assessments made by the Bank of the status of the loans based on the facts and circumstances known to the Bank, including management’s judgment, at the time of assessment. Some or all of these classifications may change in the future if there are unexpected changes in the financial condition of the borrower, including but not limited to, changes resulting from continuing deterioration in general economic conditions on a national basis or in the local markets in which the Bank operates adversely affecting, among other things, real estate values. Such conditions, as well as other factors which adversely affect borrowers’ ability to service or repay loans, typically result in changes in loan default and charge-off rates, and increased provisions for loan losses, which would adversely affect the Company’s financial performance and financial condition. These circumstances are not entirely foreseeable and, as a result, it may not be possible to accurately reflect them in the Company’s analysis of credit risk. Generally, only commercial loans, including commercial real estate, other commercial and industrial loans, commercial tax-exempt loans, and construction and land loans, are given a numerical grade. A summary of the rating system used by the Bank is included here from Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, 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. These above credit quality indicators are assigned upon origination with commercial loans reassessed on an annual basis while noncommercial loans are reassessed when the loan becomes past due greater than 90 days or when ad-hoc information becomes available to the loan officer. Further the commercial loan portfolio is subject for selection of an independent review, also on an annual basis. In addition, those loans not considered to be "Pass" rated, are subject to a Loan Committee review on a quarterly basis. Lastly, on an ad-hoc basis as new information becomes available to the loan officer on the credit quality of the borrower, the credit quality indicators are reassessed. The following tables present the loan portfolio’s credit risk profile by internally assigned grade and class of receivable as of the dates indicated: March 31, 2020 By Loan Grade or Nonaccrual Status Pass Special Accruing Nonaccrual Total (In thousands) Commercial and industrial $ 609,537 $ 9,428 $ 50,408 $ 1,371 $ 670,744 Commercial tax-exempt 434,259 2,516 8,544 — 445,319 Commercial real estate 2,517,306 79,909 23,692 5,392 2,626,299 Construction and land 237,823 470 — — 238,293 Residential 2,821,611 — 4,241 16,074 2,841,926 Home equity 86,811 — 1,063 1,476 89,350 Consumer and other 131,106 300 — 1 131,407 Total $ 6,838,453 $ 92,623 $ 87,948 $ 24,314 $ 7,043,338 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 ______________________ (1) Accruing Classified may include both Substandard and Doubtful classifications. The following table presents the loan portfolio’s credit risk profile by loan origination year and class of receivable as of the dates indicated: March 31, 2020 Loan Origination Year By Loan Grade or Nonaccrual Status 2020 2019 2018 2017 2016 2015 & Prior Total (In thousands) Commercial and industrial Pass $ 26,987 $ 149,993 $ 147,350 $ 51,752 $ 39,825 $ 193,630 $ 609,537 Special Mention — 488 1,765 3,836 232 3,107 9,428 Accruing Classified (1) 50 25,225 3,602 14,969 2,520 4,042 50,408 Nonaccrual — 171 — 210 735 255 1,371 Total $ 27,037 $ 175,877 $ 152,717 $ 70,767 $ 43,312 $ 201,034 $ 670,744 Commercial tax-exempt Pass $ — $ 13,741 $ 41,012 $ 24,823 $ 108,057 $ 246,626 $ 434,259 Special Mention — — — — — 2,516 2,516 Accruing Classified (1) — — — 4,021 — 4,523 8,544 Total $ — $ 13,741 $ 41,012 $ 28,844 $ 108,057 $ 253,665 $ 445,319 Commercial real estate Pass $ 71,236 $ 491,954 $ 310,679 $ 349,161 $ 432,649 $ 861,627 $ 2,517,306 Special Mention — 22,855 13,322 15,324 19,325 9,083 79,909 Accruing Classified (1) — 1,424 — 1,184 8,919 12,165 23,692 Nonaccrual — 5,392 — — — — 5,392 Total $ 71,236 $ 521,625 $ 324,001 $ 365,669 $ 460,893 $ 882,875 $ 2,626,299 Construction and land Pass $ 3,731 $ 52,620 $ 84,692 $ 53,428 $ 16,820 $ 26,532 $ 237,823 Special Mention — — 470 — — — 470 Total $ 3,731 $ 52,620 $ 85,162 $ 53,428 $ 16,820 $ 26,532 $ 238,293 Residential Pass $ 131,395 $ 612,100 $ 480,529 $ 504,672 $ 471,195 $ 621,720 $ 2,821,611 Accruing Classified (1) — — — — — 4,241 4,241 Nonaccrual — 263 1,089 2,532 — 12,190 16,074 Total $ 131,395 $ 612,363 $ 481,618 $ 507,204 $ 471,195 $ 638,151 $ 2,841,926 Home equity Pass $ 1,325 $ 13,322 $ 15,847 $ 7,781 $ 6,833 $ 41,703 $ 86,811 Accruing Classified (1) — — — — — 1,063 1,063 Nonaccrual — — — — 139 1,337 1,476 Total $ 1,325 $ 13,322 $ 15,847 $ 7,781 $ 6,972 $ 44,103 $ 89,350 Consumer and other Pass $ 6,326 $ 15,684 $ 23,993 $ 31,032 $ 5,227 $ 48,844 $ 131,106 Special Mention — — — 300 — — 300 Nonaccrual — — — — — 1 1 Total $ 6,326 $ 15,684 $ 23,993 $ 31,332 $ 5,227 $ 48,845 $ 131,407 Total Pass $ 241,000 $ 1,349,414 $ 1,104,102 $ 1,022,649 $ 1,080,606 $ 2,040,682 $ 6,838,453 Special Mention — 23,343 15,557 19,460 19,557 14,706 92,623 Accruing Classified (1) 50 26,649 3,602 20,174 11,439 26,034 87,948 Nonaccrual — 5,826 1,089 2,742 874 13,783 24,314 Total $ 241,050 $ 1,405,232 $ 1,124,350 $ 1,065,025 $ 1,112,476 $ 2,095,205 $ 7,043,338 ______________________ (1) Accruing Classified may include both Substandard and Doubtful classifications. The following tables present, by class of receivable, the balance of impaired loans with and without a related allowance, the associated allowance for those impaired loans with a related allowance, and the total unpaid principal on impaired loans: As of and for the three months ended March 31, 2020 Recorded Investment (1) Unpaid Principal Balance Related Allowance YTD Average Recorded Investment YTD Interest Income Recognized while Impaired (In thousands) With no related allowance recorded: Commercial and industrial $ 555 $ 632 n/a $ 667 $ 6 Commercial tax-exempt — — n/a — — Commercial real estate 6,119 6,151 n/a 2,403 9 Construction and land — — n/a — — Residential 16,352 16,612 n/a 15,587 117 Home equity 1,548 2,109 n/a 1,550 3 Consumer and other — — n/a — — Subtotal $ 24,574 $ 25,504 n/a $ 20,207 $ 135 With an allowance recorded: Commercial and industrial $ 273 $ 280 $ 175 $ 281 $ — Commercial tax-exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential 532 532 64 535 4 Home equity 270 270 20 271 2 Consumer and other — — — — — Subtotal $ 1,075 $ 1,082 $ 259 $ 1,087 $ 6 Total: Commercial and industrial $ 828 $ 912 $ 175 $ 948 $ 6 Commercial tax-exempt — — — — — Commercial real estate 6,119 6,151 — 2,403 9 Construction and land — — — — — Residential 16,884 17,144 64 16,122 121 Home equity 1,818 2,379 20 1,821 5 Consumer and other — — — — — Total $ 25,649 $ 26,586 $ 259 $ 21,294 $ 141 _____________________ (1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal. As of and for the three months ended March 31, 2019 Recorded Investment (1) Unpaid Principal Balance Related Allowance YTD Average Recorded Investment YTD Interest Income Recognized while Impaired (In thousands) With no related allowance recorded: Commercial and industrial $ 862 $ 1,730 n/a $ 1,021 $ 15 Commercial tax-exempt — — n/a — — Commercial real estate — — n/a 136 256 Construction and land — — n/a — — Residential 12,306 12,566 n/a 11,056 137 Home equity 2,147 2,709 n/a 1,709 — Consumer and other — — n/a — — Subtotal $ 15,315 $ 17,005 n/a $ 13,922 $ 408 With an allowance recorded: Commercial and industrial $ 1,302 $ 1,353 $ 231 $ 1,542 $ 16 Commercial tax-exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential 597 597 68 732 7 Home equity — — — 1,290 — Consumer and other — — — — — Subtotal $ 1,899 $ 1,950 $ 299 $ 3,564 $ 23 Total: Commercial and industrial $ 2,164 $ 3,083 $ 231 $ 2,563 $ 31 Commercial tax-exempt — — — — — Commercial real estate — — — 136 256 Construction and land — — — — — Residential 12,903 13,163 68 11,788 144 Home equity 2,147 2,709 — 2,999 — Consumer and other — — — — — Total $ 17,214 $ 18,955 $ 299 $ 17,486 $ 431 _____________________ (1) Recorded investment represents the client loan balance net of historical charge offs and historical nonaccrual interest paid, if applicable, which was applied to principal. As of and for the year ended December 31, 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, if applicable, which was applied to principal. When management determines that it is probable that the Bank will not collect all principal and interest on a loan in accordance with the original loan terms, the loan is designated as impaired. On March 22, 2020, regulators issued an interagency statement encouraging financial institutions to work with borrowers affected by the COVID-19 pandemic. The interagency statement also provided additional information regarding loan modifications. The regulators indicated they will not criticize institutions for working with borrowers in a safe and sound manner and have indicated that related modifications will not automatically result in a TDR. The regulators also provided supervisory views that loans modified under this program would not be considered past due or nonaccrual. The regulators view prudent loan modification programs offered to financial institution customers affected by the COVID-19 pandemic as positive and proactive actions that can manage adverse impacts on borrowers, and lead to improved loan performance and reduced credit risk. The statement indicated that short-term modifications made on a good faith basis in response to the COVID-19 pandemic to borrowers who were current prior to any relief are not TDRs. As of March 31, 2020, 10 loans with a current outstanding principal balance of approximately $5.0 million were processed under this mortgage deferment program. As of the date of this filing, the Bank has approved approximately 170 additional deferments for mortgage loans with a current outstanding principal balance of approximately $90.0 million. 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 March 31, 2020, the Bank has pledged $2.3 billion of loans in a blanket lien agreement with the FHLB. The Bank also has $386.2 million of loans pledged as collateral at the FRB for access to their discount window. As of December 31, 2019, the Bank had pledged $2.5 billion of loans to the FHLB and $395.3 million of loans at the FRB. The Bank may, under certain circumstances, restructure loans as a concession to borrowers who are experiencing financial difficulty. These loans are outside of the guidelines to not be considered a TDR by recent regulatory guidance. 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 March 31, 2020 and December 31, 2019, TDRs totaled $14.9 million and $12.6 million, respectively. As of March 31, 2020, $7.1 million of the $14.9 million in TDRs were on accrual status. As of December 31, 2019, $7.1 million of the $12.6 million in TDRs were on accrual status. Since all TDR loans are considered impaired loans, they are individually evaluated for impairment. The resulting impairment, if any, would have an impact on the allowance for loan losses as a specific reserve or charge-off. If, prior to the classification as a TDR, the loan was not impaired, there would have been a general reserve on the particular loan. Prior to the adoption of ASU 2016-13 on January 1, 2020, a general or allocated reserve would have been applied. Many loans initially categorized as TDRs are already on nonaccrual status and are already considered impaired. Therefore, there is generally not a material change to the allowance for loan losses when a nonaccruing loan is categorized as a TDR. The following tables present the balance of TDRs that were restructured or defaulted during the periods indicated: As of and for the three months ended March 31, 2020 Restructured Year to Date TDRs that defaulted in the Year to Date that were restructured # of Pre- Post- # of Post- (In thousands, except number of loans) Commercial and industrial (1) 1 $ 50 $ 50 — $ — Commercial tax exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential (2) 1 2,373 2,373 — — Home equity — — — — — Consumer and other — — — — — Total 2 $ 2,423 $ 2,423 — $ — _____________________ (1) Represents the following type of concession: extension of maturity, reduction in interest rate. (2) Represents the following type of concession: payment deferral. As of and for the three months ended March 31, 2019 Restructured Current Quarter TDRs that defaulted in the Current Quarter that were restructured in prior twelve months # of Loans Pre- modification recorded investment Post- modification recorded investment # of Loans Post- modification recorded investment (In thousands, except number of loans) Commercial and industrial (1) 1 $ 179 $ 179 — $ — Commercial tax exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential (2) 1 3,000 3,000 — — Home equity — — — — — Consumer and other — — — — — Total 2 $ 3,179 $ 3,179 — $ — _____________________ (1) Represents the following type of concession: extension of term. (2) Represents the following type of concession: temporary reduction of interest rate. In the first quarter of 2020, in response to the COVID-19 pandemic, the Bank initiated a mortgage deferment program under which principal and interest payments on qualifying loans are generally deferred for three months and the loan term is extended three months. Loans that are deferred under the program are not considered TDRs or past due based on current regulatory guidance. As of March 31, 2020, 10 loans totaling approximately $5.0 million were approved under the program. As this program was started late in the first quarter of 2020, the Bank has been experiencing increased volume in the second quarter of 2020 due to the COVID-19 pandemic. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 16: Subsequent Events” for additional information on the mortgage deferment program. 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: March 31, 2020 December 31, 2019 (In thousands) Commercial and industrial $ 14,706 $ 14,533 Commercial tax-exempt 17,959 18,101 Commercial real estate 117,782 121,929 Construction and land 79,517 75,451 Total loan participations serviced for others $ 229,964 $ 230,014 Residential $ 145,299 $ 204,696 Total loans serviced for others $ 145,299 $ 204,696 |
Allowance for Loan Losses
Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established based upon the Company's current estimate of expected lifetime credit losses on loans measured at amortized cost. Loan losses are charged against the allowance when management's assessments confirm that the Company will not collect the full amortized cost basis of a loan. Subsequent recoveries, if any, are credited to the allowance when collected. Under the CECL methodology, which the Company adopted on January 1, 2020, the Company estimates credit losses on a collective basis for loans sharing similar risk characteristics using a quantitative model combined with an assessment of certain qualitative factors designed to address forecast risk and model risk inherent in the quantitative model output. The quantitative model utilizes a factor-based approach to estimate expected credit losses using probability of default and loss given default, which are derived from a selected peer group's historical default and loss experience. The model estimates expected credit losses using loan level data over the contractual life of the exposure, considering the effect of estimated prepayments and curtailments. Reasonable and supportable economic forecasts are incorporated into the estimate over a reasonable and supportable forecast period, beyond which is a reversion to the Company's historical long-run average. Management has determined a reasonable and supportable period of two years and a straight line reversion period of twelve months to be appropriate for purposes of estimating expected credit losses. The Company's qualitative assessment is based on factors outlined in regulatory guidance and include the following: • Volume and trend of past-due, non-accrual, and adversely-graded loans • Trends in volume and terms of loans • Concentration Risk • Experience and depth of management • Risk surrounding lending policy and underwriting standards • Risk surrounding loan review • Banking industry conditions, other external factors, and inherent model risk Loans that no longer share similar risk characteristics with any pools of assets are subject to individual assessment and are removed from the collectively assessed pools to avoid double counting. For the loans that will be individually assessed, the Company will use either a discounted cash flow ("DCF") approach or a fair value of collateral approach. The latter approach will be used for loans deemed to be collateral dependent or when foreclosure is probable. Accrued interest receivable amounts are excluded from balances of loans held at amortized cost and are included within Accrued interest receivable on the consolidated balance sheet. Management has elected not to measure an allowance for credit losses on these amounts as the Company employs a timely write-off policy as generally any loan over 89 days past-due is put on non-accrual status and any associated accrued interest is reversed. For periods disclosed prior to the adoption of ASU 2016-13 as of January 1, 2020, the Allowance for loan losses was determined under the incurred loss model. Refer to "Note 1: Basis of Presentation and Summary of Significant Account Policies" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 for a description of the methodology. The allowance for loan losses, which is reported as a reduction of outstanding loan balances, totaled $68.2 million and $72.0 million as of March 31, 2020 and December 31, 2019, respectively. Beginning in the first quarter of 2020, the Company made a change to the loan portfolio segmentation as it relates to the allowance for loan losses in which Commercial and industrial and Commercial tax-exempt loans were bifurcated given the different underlying risk characteristics. For the period ended March 31, 2019, the provision/ (credit) for loan losses and related allowance balance in the allowance for loan losses for tax-exempt commercial and industrial loans is included with commercial and industrial loans. The following tables present a summary of the changes in the allowance for loan losses for the periods indicated: As of and for the three months ended March 31, 2020 2019 (In thousands) Allowance for loan losses, beginning of period: Commercial and industrial $ 10,048 $ 15,912 Commercial tax-exempt 6,016 n/a Commercial real estate 40,765 41,934 Construction and land 5,119 6,022 Residential 8,857 10,026 Home equity 778 1,284 Consumer and other 399 134 Total allowance for loan losses, beginning of period $ 71,982 $ 75,312 Impact of adopting ASU 2016-13: Commercial and industrial $ (565) n/a Commercial tax-exempt (4,409) n/a Commercial real estate (14,455) n/a Construction and land (2,158) n/a Residential 685 n/a Home equity (535) n/a Consumer and other 1,052 n/a Total impact of adopting ASU 2016-13 $ (20,385) n/a Provision/(credit) for loan losses: Commercial and industrial $ 1,245 $ (413) Commercial tax-exempt 320 n/a Commercial real estate 10,270 (310) Construction and land 2,748 (669) Residential 2,237 (69) Home equity (72) 74 Consumer and other 214 (39) Total provision/(credit) for loan losses $ 16,962 $ (1,426) Loans charged off: Commercial and industrial $ (518) $ — Commercial tax-exempt — — Commercial real estate — — Construction and land — — Residential — — Home equity — (562) Consumer and other (10) (2) Total charge offs $ (528) $ (564) Recoveries on loans previously charged off: Commercial and industrial $ 45 $ 188 Commercial tax-exempt — — Commercial real estate — 189 Construction and land — — Residential — 100 Home equity 132 — Consumer and other 3 15 Total recoveries $ 180 $ 492 Allowance for loan losses, end of period: Commercial and industrial $ 10,255 $ 15,687 Commercial tax-exempt 1,927 n/a Commercial real estate 36,580 41,813 Construction and land 5,709 5,353 Residential 11,779 10,057 Home equity 303 796 Consumer and other 1,658 108 Total allowance for loan losses, end of period $ 68,211 $ 73,814 The balance of the allowance for loan losses of $68.2 million as of March 31, 2020 represents a decrease of $3.8 million from December 31, 2019. Upon the adoption of ASU 2016-13 on January 1, 2020, the Company recognized a decrease in the allowance for loan losses of $20.4 million. The adoption amount was driven primarily by the portfolio composition, the short-term nature of many commercial loans, estimated prepayments and curtailments, a change to the loan portfolio segmentation in which Commercial and industrial and Commercial tax-exempt loans were bifurcated given the different underlying risk characteristics, and the reasonable and supportable economic forecasts at the time of adoption. During the first quarter of 2020, the Company recognized a provision for loan losses of $17.0 million. The increase in the allowance for loan losses of $17.0 million in the first quarter of 2020 was primarily driven by the changes in economic forecasts late in the first quarter of 2020 to reflect deteriorating economic conditions related to the COVID-19 pandemic. The balance of reserve for unfunded loan commitments of $4.3 million as of March 31, 2020 represents an increase of $3.2 million from December 31, 2019. Upon the adoption of ASU 2016-13 on January 1, 2020, the Company recognized an increase in the reserve of $1.4 million in the unfunded loan commitments expense. The net, after-tax impact of the $20.4 million decrease in the allowance for loan losses and the increase in the reserve for unfunded loan commitments was an increase to Retained earnings of $13.5 million. During the first quarter of 2020, the Company recognized a $1.8 million expense for the increase in the reserve for unfunded loan commitments, which is recognized as Other expense within Noninterest expense, driven by the change in economic forecasts. The allowance for loan losses is an estimate of the inherent risk of loss in the loan portfolio as of the consolidated balance sheet dates. Management estimates the level of the allowance based on all relevant information available. Changes to the required level in the allowance result in either a provision for loan loss expense, if an increase is required, or a credit to the provision, if a decrease is required. Loan losses are charged to the allowance when available information confirms that specific loans, or portions thereof, are uncollectible. Recoveries on loans previously charged off are credited to the allowance when received in cash or when the Bank takes possession of other assets. The following tables present the Company’s allowance for loan losses and loan portfolio as of March 31, 2020 and December 31, 2019 by portfolio segment, disaggregated by method of impairment analysis. The Company had no loans acquired with deteriorated credit quality as of March 31, 2020 or December 31, 2019. March 31, 2020 Individually Evaluated Collectively Evaluated Total Recorded investment Allowance for loan losses Recorded investment Allowance for loan losses Recorded investment Allowance for loan losses (In thousands) Commercial and industrial $ 828 $ 175 $ 669,916 $ 10,080 $ 670,744 $ 10,255 Commercial tax-exempt — — 445,319 1,927 445,319 1,927 Commercial real estate 6,119 — 2,620,180 36,580 2,626,299 36,580 Construction and land — — 238,293 5,709 238,293 5,709 Residential 16,884 64 2,825,042 11,715 2,841,926 11,779 Home equity 1,818 20 87,532 283 89,350 303 Consumer and other — — 131,407 1,658 131,407 1,658 Total $ 25,649 $ 259 $ 7,017,689 $ 67,952 $ 7,043,338 $ 68,211 December 31, 2019 Individually Evaluated Collectively Evaluated Total Recorded investment Allowance for loan losses Recorded investment Allowance for loan losses Recorded investment Allowance for loan losses (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 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and, to a lesser extent, the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are generally determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to certain loans, deposits, and borrowings. As a service to its customers, the Company may utilize derivative instruments including customer foreign exchange forward contracts to manage its foreign exchange risk, if any. The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Asset derivatives Liability derivatives Asset derivatives Liability derivatives Balance Fair Balance Fair Balance Fair Balance Fair (In thousands) Derivatives not designated as hedging instruments: Interest rate customer swaps Other assets 93,391 Other liabilities 94,437 Other assets 36,089 Other liabilities 36,580 Risk participation agreements Other assets 46 Other liabilities 480 Other assets 10 Other liabilities 242 Total $ 93,437 $ 94,917 $ 36,099 $ 36,822 _____________________ (1) For additional details, see Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 5: Fair Value Measurements.” The following table presents the effect of the Company’s derivative financial instruments on accumulated other comprehensive income for the three months ended March 31, 2020 and 2019: Derivatives in cash Amount of gain or (loss) recognized in OCI on derivatives Location of gain Amount of gain or (loss) reclassified from accumulated OCI into income Three months ended March 31, Three months ended March 31, 2020 2019 2020 2019 (In thousands) (In thousands) Interest rate swaps $ — $ (38) Interest expense $ — $ (311) Total $ — $ (38) $ — $ (311) The following table presents the effect of the Company’s derivative financial instruments in the Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019: Location of gain or (loss) reclassified from accumulated Amount of gain or Three months ended March 31, 2020 2019 (In thousands) Total amounts of income and (expense) line items presented in the statement of operations in which the effects of fair value or cash flow hedges are recorded Interest expense $ — $ (311) The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships in ASC 815 Interest contracts - amount of gain or (loss) reclassified from accumulated other comprehensive income into income Interest expense $ — $ (311) 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 March 31, 2020 and December 31, 2019. The Bank also has agreements with certain of its derivative counterparties that contain provisions where, if the Bank fails to maintain its status as a well- or adequately-capitalized institution, then the counterparty could terminate the derivative positions and the Bank would be required to settle its obligations under the agreements. The Bank was in compliance with these provisions as of March 31, 2020 and December 31, 2019. 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 March 31, 2020 and December 31, 2019. As of March 31, 2020 and December 31, 2019, the termination amounts related to collateral determinations of derivatives in a liability position were $94.7 million and $35.7 million, respectively. The Company has minimum collateral posting thresholds with its derivative counterparties. As of March 31, 2020 and December 31, 2019, the Company had pledged securities with a market value of $96.8 million and $40.0 million, respectively, against its obligations under these agreements. The collateral posted is typically greater than the current liability position; however, due to timing of liability position changes at period end, the funding of a collateral shortfall may take place shortly following period end. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. The Company has utilized interest rate derivatives in the past, but as of March 31, 2020, there were no active cash flow hedges. Per ASU 2017-12, for derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. For active cash flow hedges, a portion of the balance reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made or received on the Company’s interest rate swaps. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from different services the Bank provides to qualified commercial clients. The Bank offers certain derivative products directly to such clients. The Bank economically hedges derivative transactions executed with commercial clients by entering into mirror-image, offsetting derivatives with third parties. Derivative transactions executed as part of these programs are not designated in ASC 815-qualifying hedging relationships and are, therefore, marked-to-market through earnings each period. Because the derivatives have mirror-image contractual terms, the changes in fair value substantially offset through earnings. The net effect on earnings is primarily driven by changes in the credit valuation adjustment (“CVA”). The CVA represents the dollar amount of fair value adjustment related to nonperformance risk of both the Bank and its counterparties. Fees earned in connection with the execution of derivatives related to this program are recognized in the Consolidated Statements of Operations in other income. The Bank has interest rate swaps and caps related to this program with an aggregate notional amount of $1.7 billion as of March 31, 2020 and $1.6 billion as of December 31, 2019. As of March 31, 2020 and December 31, 2019, there were no foreign currency exchange contracts related to this program. In addition, as a participant lender, the Bank has guaranteed performance on the pro-rated portion of swaps executed by other financial institutions. As the participant lender, the Bank is providing a partial guarantee, but is not a direct party to the related swap transactions. The Bank has no obligations under the risk participation agreements unless the borrower defaults on their swap transaction with the lead bank and the swap is in a liability position to the borrower. In that instance, the Bank has agreed to pay the lead bank a portion of the swap’s termination value at the time of the default. The derivative transactions entered into as part of these agreements are not designated, as per ASC 815, as qualifying hedging relationships and are, therefore, marked-to-market through earnings each period. As of March 31, 2020 and December 31, 2019, there were seven of these risk participation transactions with an aggregate notional amount of $58.4 million and $58.8 million, respectively. The Bank has also participated out to other financial institutions a pro-rated portion of swaps executed by the Bank. The other financial institution has no obligations under the risk participation agreements unless the borrowers default on their swap transactions with the Bank and the swaps are in liability positions to the borrower. In those instances, the other financial institution has agreed to pay the Bank a portion of the swap’s termination value at the time of the default. The derivative transactions entered into as part of these agreements are not designated, as per ASC 815, as qualifying hedging relationships and are, therefore, marked-to-market through earnings each period. As of March 31, 2020, there were five of these risk participation transactions with an aggregate notional amount of $30.4 million. As of December 31, 2019, there were four of these risk participation transactions with an aggregate notional amount of $20.5 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 three months ended March 31, 2020 and 2019. Amount of gain or (loss), net, Derivatives not designated as Location of gain or (loss) recognized in income on derivatives Three months ended March 31, 2020 2019 (In thousands) Interest rate swaps Other income/ (expense) $ (555) $ (191) Risk participation agreements Other income/ (expense) (202) 104 Total $ (757) $ (87) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the components of income tax expense and effective tax rates for the periods indicated: Three months ended March 31, 2020 2019 (In thousands) Income before income taxes $ 908 $ 24,459 Income tax expense 102 4,917 Net income before attribution to noncontrolling interests $ 806 $ 19,542 Effective tax rate 11.2 % 20.1 % The effective tax rate for the three months ended March 31, 2020 of 11.2%, with related tax expense of $0.1 million, was calculated based on a forecasted 2020 annual effective tax rate. The effective tax rate for the three months ended March 31, 2019 of 20.1%, with related tax expense of $4.9 million, was calculated based on a forecasted 2019 annual effective tax rate. The effective tax rates for the three months ended March 31, 2020 and March 31, 2019 of 11.2% and 20.1%, respectively, were calculated based on forecasted annual effective tax rates. The effective tax rate for both periods was less than the statutory rate of 21% due primarily to earnings from tax-exempt investments and income tax credits, which were partially offset by state and local income taxes and the accounting for investments in affordable housing projects. The effective tax rate for the three months ended March 31, 2020 is less than the effective tax rate for the same period in 2019 due primarily to the lower level of income in 2020 as compared to 2019. |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling interests consist of equity owned by management of the Company’s majority-owned affiliate, DGHM. Net income attributable to noncontrolling interests in the Consolidated Statements of Operations represents the net income allocated to the noncontrolling interest owners of DGHM. Net income allocated to the noncontrolling interest owners was $6 thousand and $100 thousand for the three-month periods ended March 31, 2020 and 2019, respectively. On the Consolidated Balance Sheets, noncontrolling interests are included as the sum of the capital and undistributed profits allocated to the noncontrolling interest owners. Typically, this balance is included in a company’s permanent shareholders’ equity in the Consolidated Balance Sheets. When the noncontrolling interest owners’ rights include certain redemption features, as described in ASC 480, Distinguishing Liabilities from Equity , such redeemable noncontrolling interests are classified as mezzanine equity and are not included in permanent shareholders’ equity. Due to the redemption features of the noncontrolling interests of DGHM, the Company had redeemable noncontrolling interests held in mezzanine equity in the accompanying Consolidated Balance Sheets of zero and $1.4 million as of March 31, 2020 and December 31, 2019, respectively. The aggregate amount of such redeemable noncontrolling equity interests are recorded at the estimated maximum redemption values. The Company had no noncontrolling interests included in permanent shareholder’s equity at March 31, 2020 and December 31, 2019. The DGHM operating agreement provides the Company and/or the noncontrolling interest holders with contingent call and put options and mandatory repurchase obligations used for the orderly transfer of noncontrolling equity interests between the noncontrolling interest holders and the Company at contractually predetermined values. This agreement is discussed in Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The interests in DGHM take the form of limited liability company units. There are various events that could trigger a put, call or mandatory repurchase, such as a change in control, death, disability, retirement, resignation or termination. The terms of these rights and obligations are governed by the operating agreement of DGHM. The following table presents a rollforward of the Company’s redeemable noncontrolling interests for the periods indicated: Three months ended March 31, 2020 March 31, 2019 (In thousands) Redeemable noncontrolling interests at beginning of period $ 1,383 $ 2,526 Net income attributable to noncontrolling interests 6 100 Distributions (6) (100) Purchases/(sales) of ownership interests (64) 12 Amortization of equity compensation 8 17 Adjustments to fair value (1,327) (1,893) Redeemable noncontrolling interests at end of period $ — $ 662 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table presents a summary of the amounts reclassified from Accumulated other comprehensive income/ (loss) for the three months ended March 31, 2020 and 2019: Description of component of Accumulated other comprehensive income/(loss) Three months ended March 31, Affected line item in 2020 2019 (In thousands) Net realized gain/(loss) on cash flow hedges: Hedges related to deposits: Pre-tax gain/(loss) $ — $ (311) Interest (expense) Tax (expense)/ benefit — (91) Income tax (expense)/benefit Net $ — $ (220) Net income/(loss) attributable to the Company Total reclassifications for the period, net of tax $ — $ (220) The following table presents the after-tax changes in the components of the Company’s Accumulated other comprehensive income/(loss) for the three months ended March 31, 2020 and 2019: Components of Accumulated other comprehensive income/(loss) Unrealized Unrealized Unrealized Accumulated (In thousands) Balance at December 31, 2018 $ (17,556) $ 391 $ (554) $ (17,719) Other comprehensive income/(loss) before reclassifications 11,568 (27) — 11,541 Reclassified from other comprehensive income/(loss) — (220) — (220) Other comprehensive income/(loss), net 11,568 (247) — 11,321 Balance at March 31, 2019 $ (5,988) $ 144 $ (554) $ (6,398) Balance at December 31, 2019 $ 8,435 $ — $ (860) $ 7,575 Other comprehensive income/(loss) before reclassifications 14,489 — — 14,489 Other comprehensive income/(loss), net 14,489 — — 14,489 Balance at March 31, 2020 $ 22,924 $ — $ (860) $ 22,064 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RestructuringThere were no restructuring charges in the first quarter of 2020. In the first quarter of 2019, the Company incurred restructuring charges of $1.6 million. The charges were in connection with a previously announced reduction to the Company’s workforce, which included executive transition changes as well as other employee benefit and technology related initiatives. The restructuring is intended to improve the Company’s operating efficiency and enhance earnings. The following table presents a summary of the restructuring activity for the three months ended March 31, 2020 and 2019: Severance Charges Other Associated Costs Total (In thousands) Accrued charges at December 31, 2019 $ 526 $ 789 $ 1,315 Costs paid (434) — (434) Accrued charges at March 31, 2020 $ 92 $ 789 $ 881 Accrued charges at December 31, 2018 $ 3,896 $ 789 $ 4,685 Cost incurred 1,646 — 1,646 Costs paid (1,986) — (1,986) Accrued charges at March 31, 2019 $ 3,556 $ 789 $ 4,345 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Revenue Recognition In accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”), the Company recognizes 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. ASC 606 does not apply to revenue associated with financial instruments such as loans and securities. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest income considered in-scope of ASC 606 is discussed below. Wealth Management and Trust Fees Wealth management and trust fees are earned for providing 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 $6.4 million and $6.7 million as of March 31, 2020 and 2019, 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 contracts. 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: Three months ended March 31, 2020 2019 (In thousands) Fees and other income: Wealth management and trust fees $ 18,371 $ 19,058 Investment management fees 1,925 2,650 Other income 752 684 Revenue from contracts with customers 21,048 22,392 Non-interest income within the scope of other GAAP topics 473 2,856 Total non-interest income $ 21,521 $ 25,248 |
Lease Accounting
Lease Accounting | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease Accounting | Lease Accounting On adoption of ASU 2016-02 on January 1, 2019, the Company recognized $124.1 million of lease liabilities and $108.5 million of right-of-use ("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. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 15: Recent Accounting Pronouncements” for additional information on the Company's adoption of this standard. The Company, as lessee, has 42 real estate leases for office and ATM locations classified as operating leases. The Company determines if an arrangement is a lease or contains a lease at inception. The terms of the real estate leases generally have annual increases in payments based off of a fixed or variable rate, such as the Consumer Price Index rate, that is outlined within the respective contracts. Generally, the initial terms of the leases for our leased properties range from five five The following table presents information about the Company's leases as of the dates indicated. Three months ended March 31, 2020 2019 (In thousands) Lease cost Operating lease cost $ 4,601 $ 4,685 Short-term lease cost 48 32 Variable lease cost (9) 2 Less: Sublease income (28) (18) Total operating lease cost $ 4,612 $ 4,701 Three months ended March 31, 2020 (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 $ 5,100 ROU assets obtained in exchange for new operating lease liabilities $ 443 Weighted-average remaining lease term for operating leases 7.9 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 March 31, 2020: March 31, 2020 (In thousands) Remainder of 2020 $ 14,962 2021 19,974 2022 19,934 2023 18,984 2024 12,961 Thereafter 44,194 Total future minimum lease payments 131,009 Less: Amounts representing interest (17,435) Present value of net future minimum lease payments $ 113,574 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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 standard establishes an ROU model 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 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 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. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 14: Lease Accounting” for further details. In June 2016, the FASB issued ASU 2016-13, Financial Instruments (Topic 326) (“ASU 2016-13”). Throughout 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”); ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief (“ASU 2019-05”); 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”). This update and related amendments to Topic 326 are 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 CECL model methodology that reflects expected credit losses and requires consideration of a reasonable and supportable economic forecast to inform credit loss estimates. This ASU is effective for fiscal years beginning after December 15, 2019. The Company adopted this update on January 1, 2020 utilizing a modified retrospective approach. On adoption of ASU 2016-13 on January 1, 2020, the Company recognized a decrease in the allowance for loan losses of $20.4 million, and an increase in the reserve for unfunded loan commitments of $1.4 million. The net, after-tax impact of the decrease in the allowance for loan losses and the increase in the reserve for unfunded loan commitments was an increase to Retained earnings of $13.5 million shown in the Consolidated Statements of Changes in Shareholders’ Equity. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 4: Investments, Note 6 - Loan Portfolio and Credit Quality, and Note 7 - Allowance for Loan Losses” for further details. 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 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Impact of the COVID-19 pandemic The COVID-19 pandemic has caused substantial disruptions to the global economy and to the customers and communities that we serve. In response to the pandemic, the Company has implemented business continuity contingency plans, including company-wide remote working arrangements. We are also focused on supporting our clients who may be experiencing a financial hardship due to the COVID-19 pandemic, including by participating in the Small Business Administration’s (the “SBA”) Paycheck Protection Program (the “PPP”) and offering loan deferrals, forbearance, and second mortgages as appropriate, including through our mortgage deferment program. As of March 31, 2020, the COVID-19 pandemic did not have a significant impact on the Company’s financial condition, results of operations, or capital position other than the provision for loan loss expense described in Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 7: Allowance for Loan Losses.” Below is a summary of the impact to the Company subsequent to March 31, 2020 until the filing date of this Form 10-Q. Participation in the PPP The CARES Act appropriated $349 billion for “paycheck protection loans” through the PPP. The amount appropriated was subsequently increased to $659 billion. The CARES Act provided funding to the SBA for use for the PPP. Under the terms of the PPP, certain businesses can apply for loans through qualified financial institutions, such as the Bank, based on eligibility criteria. The PPP provides loans to eligible businesses with an initial term of two years at an interest rate of 1.0%. Payments can be deferred for a period of six months. Loans issued under the PPP will be forgiven if the borrower uses at least 75% of the proceeds on payroll, rent, utilities and other qualified benefits for a period of eight weeks, following the loan funding date, and are 100% guaranteed by the SBA. The SBA has issued an interim final rule in which it has provided that a lender may rely on certifications made by a borrower to determine the borrower’s eligibility for a PPP loan and use of loan proceeds, subject to a good faith review, and to determine the qualifying loan amount and eligibility for loan forgiveness. Loans issued by participating financial institutions are 100% guaranteed by the SBA. Banks will receive a processing fee from the SBA from 1.0% to 5.0% based on the size of the loan. Loans up to $350 thousand will have a 5.0% fee, loans between $350 thousand and $2.0 million will have a 3.0% fee, and loans greater than $2.0 million will have a 1.0% fee. In conjunction with the PPP, the Board of Governors of the Federal Reserve System (the “Federal Reserve”) has created a lending facility for qualified financial institutions. The Paycheck Protection Program Liquidity Facility (the “PPPLF”) will extend credit to depository institutions with a term of up to two years at an interest rate of 0.35%. Only loans issued under the PPP can be pledged as collateral to access the facility. The Bank is participating in the PPP and PPPLF programs. As of March 31, 2020, an immaterial amount of loans were processed under the PPP program, though the Company expects increased volume in the second quarter of 2020. As of the date of this filing, the Bank has approved approximately 1,100 PPP loans totaling approximately $425.0 million and does not anticipate to approve any additional loans under the current conditions. Mortgage Deferment Program In the first quarter of 2020, in response to the COVID-19 pandemic, the Bank initiated a mortgage deferment program under which principal and interest payments on qualifying mortgage loans are generally deferred for three months and the loan term is extended three months. Loans that meet the requirements for deferral under the program are not considered TDRs or past due based on current regulatory guidance. As of March 31, 2020, ten loans totaling approximately $5.0 million were processed under this program, though the Company expects increased volume in the second quarter of 2020. As of the date of this filing, the Bank has initially approved approximately 170 deferments for loans totaling approximately $90.0 million. Massachusetts COVID-19 Emergency Legislation On April 20, 2020, legislation enacted in Massachusetts in response to the COVID-19 emergency declared by Governor Baker was signed into law by the Governor. The legislation establishes a temporary moratorium on foreclosures on one- to four-family, owner occupied residential real estate in Massachusetts. The legislation also requires a creditor to grant to a borrower of a mortgage loan secured by one- to four-family, owner occupied residential real estate in Massachusetts a forbearance of up to 180 days, if requested by the borrower, who must affirm that the borrower has experienced a financial impact from the COVID-19 pandemic. A borrower is entitled to request a forbearance while the legislation is in effect even if the borrower is already in default. In connection with a forbearance, a creditor may not charge fees, penalties or interest beyond the amounts scheduled and calculated as if the borrower made all contractual payments on time and in full under the terms of the relevant loan agreement. The legislation specifies that a payment subject to forbearance shall be added to the end of the term of the loan unless otherwise agreed by the parties. The legislation also prohibits a creditor from furnishing negative information to a consumer reporting agency related to mortgage payments subject to forbearance. Because the legislation was enacted on an emergency basis, it went into effect immediately upon being signed into law. The legislation provides that the temporary moratorium on foreclosures expires 120 days after the effective date of the legislation, which is August 18, 2020, or 45 days after the COVID-19 emergency declaration has been lifted, whichever is sooner, but the Governor may extend the moratorium in increments of up 90 days as long as the moratorium ends not later than 45 days after the COVID-19 emergency declaration has been lifted. A borrower may request a forbearance under the legislation at any time while the foreclosure moratorium is in effect. Forbearances, if any, granted under the Massachusetts legislation to borrowers who are currently in default may not qualify for the reporting exclusion as a TDR or delinquency status as was provided under the national guidance from regulators. Commercial Real Estate Second Loan Program |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | The Company’s significant accounting policies are described in Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC. For interim reporting purposes, the Company follows the same significant accounting policies, except for the following new accounting pronouncements from the Financial Accounting Standards Board (the “FASB”) that were adopted effective January 1, 2020: • In June 2016, the FASB issued ASU 2016-13. Throughout 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”); ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief (“ASU 2019-05”); 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”). This update and related amendments to Topic 326 are 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 reasonable and supportable forecast to inform credit loss estimates. This ASU is effective for fiscal years beginning after December 15, 2019. The Company adopted this update on January 1, 2020 utilizing a modified retrospective approach. On adoption of ASU 2016-13 on January 1, 2020, the Company recognized a decrease in the allowance for loan losses of $20.4 million, and an increase in the reserve for unfunded loan commitments of $1.4 million. The net, after-tax impact of the decrease in the allowance for loan losses and the increase in the reserve for unfunded loan commitments was an increase to Retained earnings of $13.5 million shown in the Consolidated Statements of Changes in Shareholders’ Equity. 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 standard establishes an ROU model 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 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 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. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 14: Lease Accounting” for further details. In June 2016, the FASB issued ASU 2016-13, Financial Instruments (Topic 326) (“ASU 2016-13”). Throughout 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”); ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief (“ASU 2019-05”); 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”). This update and related amendments to Topic 326 are 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 CECL model methodology that reflects expected credit losses and requires consideration of a reasonable and supportable economic forecast to inform credit loss estimates. This ASU is effective for fiscal years beginning after December 15, 2019. The Company adopted this update on January 1, 2020 utilizing a modified retrospective approach. On adoption of ASU 2016-13 on January 1, 2020, the Company recognized a decrease in the allowance for loan losses of $20.4 million, and an increase in the reserve for unfunded loan commitments of $1.4 million. The net, after-tax impact of the decrease in the allowance for loan losses and the increase in the reserve for unfunded loan commitments was an increase to Retained earnings of $13.5 million shown in the Consolidated Statements of Changes in Shareholders’ Equity. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 4: Investments, Note 6 - Loan Portfolio and Credit Quality, and Note 7 - Allowance for Loan Losses” for further details. 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 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted EPS | The following tables present the computations of basic and diluted EPS: Three months ended March 31, 2020 2019 (In thousands, except share and per share data) Basic earnings per share - Numerator: Net income before attribution to noncontrolling interests $ 806 $ 19,542 Less: Net income attributable to noncontrolling interests 6 100 Net income attributable to the Company 800 19,442 Decrease in noncontrolling interests’ redemption values (1) 414 1,557 Total adjustments to income attributable to common shareholders 414 1,557 Net income attributable to common shareholders, treasury stock method $ 1,214 $ 20,999 Basic earnings per share - Denominator: Weighted average basic common shares outstanding 83,005,064 83,285,095 Per share data - Basic earnings per share: Total attributable to common shareholders $ 0.01 $ 0.25 Three months ended March 31, 2020 2019 (In thousands, except share and per share data) Diluted earnings per share - Numerator: Net income attributable to common shareholders, after assumed dilution $ 1,214 $ 20,999 Diluted earnings per share - Denominator: Weighted average basic common shares outstanding 83,005,064 83,285,095 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) 312,977 725,355 Dilutive common shares 312,977 725,355 Weighted average diluted common shares outstanding (2) 83,318,041 84,010,450 Per share data - Diluted earnings per share: Total attributable to common shareholders $ 0.01 $ 0.25 Dividends per share declared and paid on common stock $ 0.12 $ 0.12 _____________________ (1) See Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with the FASB Accounting Standards Codification Distinguishing Liabilities from Equity (“ASC 480”), an increase in redemption value from period to period reduces income attributable to common shareholders. Decreases in redemption value from period to period increase income attributable to common shareholders, but only to the extent that the cumulative change in redemption value remains a cumulative increase since adoption of this standard in the first quarter of 2009. (2) The diluted EPS computations for the three months ended March 31, 2020 and 2019 do not assume the conversion, exercise, or contingent issuance of the following shares for the following periods because the result would have been anti-dilutive for the periods indicated. As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows: Three months ended March 31, 2020 2019 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 1,254 796 Total shares excluded due to exercise price exceeding the average market price of common shares during the period 1,254 796 |
Schedule of antidilutive securities excluded from computation of earnings per share | As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows: Three months ended March 31, 2020 2019 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 1,254 796 Total shares excluded due to exercise price exceeding the average market price of common shares during the period 1,254 796 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | The following tables present a reconciliation of the revenues, profits, assets, and other significant items of reportable segments as of and for the three months ended March 31, 2020 and 2019. Three months ended March 31, 2020 2019 Private Banking (1) (In thousands) Net interest income $ 58,090 $ 59,337 Fees and other income 1,108 3,258 Total revenue 59,198 62,595 Provision/(credit) for loan losses 16,962 (1,426) Operating expense (2) 42,588 41,317 Income/(loss) before income taxes (352) 22,704 Income tax expense/(benefit) (931) 4,430 Net income before attribution to noncontrolling interests 579 18,274 Net income attributable to the Company $ 579 $ 18,274 Assets $ 8,692,069 $ 8,481,160 Amortization of intangibles $ 77 $ — Depreciation $ 2,626 $ 2,670 Three months ended March 31, 2020 2019 Wealth Management and Trust (1) (In thousands) Net interest income $ 72 $ 106 Fees and other income 18,485 19,126 Total revenue 18,557 19,232 Operating expense (2) 15,449 15,567 Income before income taxes 3,108 3,665 Income tax expense 1,074 1,194 Net income before attribution to noncontrolling interests 2,034 2,471 Net income attributable to the Company $ 2,034 $ 2,471 Assets $ 143,998 $ 147,771 Amortization of intangibles $ 638 $ 672 Depreciation $ 294 $ 367 Three months ended March 31, 2020 2019 Holding Company and Eliminations (1) (In thousands) Net interest income (3) $ (905) $ (1,105) Fees and other income 1,928 2,864 Total revenue 1,023 1,759 Operating expense 2,871 3,669 Income/(loss) before income taxes (1,848) (1,910) Income tax expense/(benefit) (41) (707) Net income/(loss) before attribution to noncontrolling interests (1,807) $ (1,203) Noncontrolling interests 6 100 Net income/(loss) attributable to the Company $ (1,813) $ (1,303) Assets (including eliminations) $ (89,741) $ (56,788) Depreciation $ 39 $ 47 Three months ended March 31, 2020 2019 Total Company (1) (In thousands) Net interest income $ 57,257 $ 58,338 Fees and other income 21,521 25,248 Total revenue 78,778 83,586 Provision/(credit) for loan losses 16,962 (1,426) Operating expense 60,908 60,553 Income before income taxes 908 24,459 Income tax expense 102 4,917 Net income before attribution to noncontrolling interests 806 19,542 Noncontrolling interests 6 100 Net income attributable to the Company $ 800 $ 19,442 Assets $ 8,746,326 $ 8,572,143 Amortization of intangibles $ 715 $ 672 Depreciation $ 2,959 $ 3,084 _____________________ (1) Due to rounding, the sum of individual segment results may not add up to the Total Company results. (2) Operating expense related to the Private Banking and Wealth Management and Trust segments includes restructuring expense for the three months ended March 31, 2019 of $1.3 million and $0.4 million, respectively. (3) Interest expense on junior subordinated debentures is included in Holding Company and Eliminations. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Schedule of debt securities available-for-sale | The following table presents a summary of investment securities at March 31, 2020 and December 31, 2019: Amortized Unrealized Fair Gains Losses (In thousands) At March 31, 2020 Available-for-sale securities at fair value: U.S. government and agencies $ 19,957 $ 1,130 $ — $ 21,087 Government-sponsored entities 154,844 5,598 — 160,442 Municipal bonds 319,844 12,784 (128) 332,500 Mortgage-backed securities (1) 466,706 12,670 (239) 479,137 Total $ 961,351 $ 32,182 $ (367) $ 993,166 Held-to-maturity securities at amortized cost: Mortgage-backed securities (1) $ 45,395 $ 731 $ (30) $ 46,096 Total $ 45,395 $ 731 $ (30) $ 46,096 Equity securities at fair value: Money market mutual funds (2) $ 23,080 $ — $ — $ 23,080 Total $ 23,080 $ — $ — $ 23,080 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 _____________________ (1) All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities. (2) Money market mutual funds maintain a constant net asset value of $1.00 and therefore have no unrealized gain or loss. |
Schedule of debt securities held-to-maturity | The following table presents a summary of investment securities at March 31, 2020 and December 31, 2019: Amortized Unrealized Fair Gains Losses (In thousands) At March 31, 2020 Available-for-sale securities at fair value: U.S. government and agencies $ 19,957 $ 1,130 $ — $ 21,087 Government-sponsored entities 154,844 5,598 — 160,442 Municipal bonds 319,844 12,784 (128) 332,500 Mortgage-backed securities (1) 466,706 12,670 (239) 479,137 Total $ 961,351 $ 32,182 $ (367) $ 993,166 Held-to-maturity securities at amortized cost: Mortgage-backed securities (1) $ 45,395 $ 731 $ (30) $ 46,096 Total $ 45,395 $ 731 $ (30) $ 46,096 Equity securities at fair value: Money market mutual funds (2) $ 23,080 $ — $ — $ 23,080 Total $ 23,080 $ — $ — $ 23,080 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 _____________________ (1) All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities. (2) Money market mutual funds maintain a constant net asset value of $1.00 and therefore have no unrealized gain or loss. |
Investments classified by contractual maturity date | The following table presents the maturities of available-for-sale investment securities, based on contractual maturity, as of March 31, 2020. Certain securities are callable before their final maturity. Additionally, certain securities (such as mortgage-backed securities) are shown within the table below based on their final (contractual) maturity, but due to prepayments and amortization are expected to have shorter lives. Available-for-sale Securities Amortized Fair (In thousands) Within one year $ 33,686 $ 33,916 After one, but within five years 312,665 322,256 After five, but within ten years 230,955 239,899 Greater than ten years 384,045 397,095 Total $ 961,351 $ 993,166 The following table presents the maturities of held-to-maturity investment securities, based on contractual maturity, as of March 31, 2020. Held-to-maturity Securities Amortized Fair (In thousands) After five, but within ten years $ 37,086 $ 37,569 Greater than ten years 8,309 8,527 Total $ 45,395 $ 46,096 The following table presents the maturities of equity securities, b ased on contractual maturity, as of March 31, 2020. Equity Securities Amortized Fair (In thousands) Within one year $ 23,080 $ 23,080 Total $ 23,080 $ 23,080 |
Schedule of unrealized loss on investments | The following tables present information regarding securities at March 31, 2020 and December 31, 2019 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 # of (In thousands, except number of securities) March 31, 2020 Available-for-sale securities Municipal bonds $ 14,009 $ (128) $ — $ — $ 14,009 $ (128) 3 Mortgage-backed securities (1) 3,568 (25) 18,972 (214) 22,540 (239) 36 Total $ 17,577 $ (153) $ 18,972 $ (214) $ 36,549 $ (367) 39 Held-to-maturity securities Mortgage-backed securities (1) $ — $ — $ 4,442 $ (30) $ 4,442 $ (30) 2 Total $ — $ — $ 4,442 $ (30) $ 4,442 $ (30) 2 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized # 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 _____________________ (1) All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019, aggregated by the level in the fair value hierarchy within which those measurements fall: As of March 31, 2020 Fair value measurements at reporting date using: Quoted prices in Significant Significant (In thousands) Assets: Available-for-sale securities: U.S. government and agencies $ 21,087 $ — $ 21,087 $ — Government-sponsored entities 160,442 — 160,442 — Municipal bonds 332,500 — 332,500 — Mortgage-backed securities 479,137 — 479,137 — Total available-for-sale securities 993,166 — 993,166 — Equity securities 23,080 23,080 — — Derivatives - interest rate customer swaps 93,391 — 93,391 — Derivatives - risk participation agreement 46 — 46 — Trading securities held in the “rabbi trust” (1) 5,550 5,550 — — Liabilities: Derivatives - interest rate customer swaps $ 94,437 $ — $ 94,437 $ — Derivatives - risk participation agreement 480 — 480 — Deferred compensation “rabbi trust” (1) 5,550 5,550 — — Fair value measurements at reporting date using: As of December 31, 2019 Quoted prices in Significant 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 — — _____________________ (1) The Company has adopted a special trust for the Deferred Compensation Plan called a “rabbi trust”. The rabbi trust is an arrangement that is used to accumulate assets that may be used to fund the Company’s obligation to pay benefits under the Deferred Compensation Plan. To prevent immediate taxation to the executives who participate in the Deferred Compensation Plan, the amounts placed in the rabbi trust must remain subject to the claims of the Company’s creditors. The investments chosen by the participants in the Deferred Compensation Plan are mirrored by the rabbi trust as a way to minimize the earnings volatility of the Deferred Compensation Plan. |
Fair value, assets and liabilities measured on nonrecurring basis | The following tables present the Company’s assets and liabilities measured at fair value on a non-recurring basis during the periods ended March 31, 2020 and 2019, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall. As of March 31, 2020 Fair value measurements at reporting date using: Gain (losses) from fair value changes Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Three months ended March 31, 2020 (In thousands) Assets: Impaired loans (1) $ 97 $ — $ — $ 97 $ 21 _____________________ (1) Collateral-dependent impaired loans held as of March 31, 2020 that had write-downs or recoveries in fair value or whose specific reserve changed during the three months ended March 31, 2020. As of March 31, 2019 Fair value measurements at reporting date using: Gain (losses) from fair value changes Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Three months ended March 31, 2019 (In thousands) Assets: Impaired loans (1) $ 957 $ — $ — $ 957 $ 372 _____________________ (1) Collateral-dependent impaired loans held as of March 31, 2019 that had write-downs or recoveries in fair value or whose specific reserve changed during the three months ended March 31, 2019. |
Fair value, assets and liabilities measured on recurring and nonrecurring basis, valuation techniques | The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value: As of March 31, 2020 Fair Value Valuation Unobservable Range of Weighted (In thousands) Impaired Loans $ 97 Appraisals of Collateral Discount for costs to sell 10% - 10% 10% Appraisal adjustments —% —% As of March 31, 2019 Fair Value Valuation Unobservable Range of Weighted (In thousands) Impaired Loans $ 957 Appraisals of Collateral Discount for costs to sell —% - 6% 1% Appraisal adjustments —% —% |
Fair value, by balance sheet grouping | The following tables present the carrying values and fair values of the Company’s financial instruments that are not measured at fair value on a recurring basis: As of March 31, 2020 Book Value Fair Value Quoted prices Significant Significant (In thousands) FINANCIAL ASSETS: Cash and cash equivalents $ 61,714 $ 61,714 $ 61,714 $ — $ — Investment securities held-to-maturity 45,395 46,096 — 46,096 — Loans held for sale 7,671 7,724 — 7,724 — Loans, net 6,975,127 6,752,894 — — 6,752,894 Other financial assets 73,576 73,576 — 73,576 — FINANCIAL LIABILITIES: Deposits 6,835,572 6,838,860 — 6,838,860 — Securities sold under agreements to repurchase 45,319 45,319 — 45,319 — Federal funds purchased 145,000 145,000 — 145,000 — Federal Home Loan Bank borrowings 491,254 493,532 — 493,532 — Junior subordinated debentures 106,363 96,363 — — 96,363 Other financial liabilities 2,154 2,154 — 2,154 — 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 — |
Loan Portfolio and Credit Qua_2
Loan Portfolio and Credit Quality (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of accounts, notes, loans and financing receivable | The following table presents a summary of the loan portfolio based on the portfolio segment as of the dates indicated: March 31, 2020 December 31, 2019 (In thousands) Commercial and industrial $ 670,744 $ 694,034 Commercial tax-exempt 445,319 447,927 Commercial real estate 2,626,299 2,551,274 Construction and land 238,293 225,983 Residential 2,841,926 2,839,155 Home equity 89,350 83,657 Consumer and other 131,407 134,674 Total $ 7,043,338 $ 6,976,704 |
Schedule of financing receivables, non accrual status | The following table presents nonaccrual loans receivable by class of receivable as of the dates indicated: March 31, 2020 December 31, 2019 (In thousands) Commercial and industrial $ 1,371 $ 582 Commercial tax-exempt — — Commercial real estate 5,392 — Residential 16,074 13,993 Home equity 1,476 1,525 Consumer and other 1 3 Total $ 24,314 $ 16,103 |
Past due financing receivables | The following tables show the payment status of loans receivable by class of receivable as of the dates indicated: March 31, 2020 Accruing Past Due Nonaccrual Loans 30-59 Days Past Due 60-89 Days Past Due Total Accruing Past Due Current 30-89 Days Past Due 90 Days or Total Non-Accrual Loans Current Accruing Loans Total (In thousands) Commercial and industrial $ 1,401 $ 92 $ 1,493 $ 381 $ — $ 990 $ 1,371 $ 667,880 $ 670,744 Commercial tax-exempt — — — — — — — 445,319 445,319 Commercial real estate — — — 5,392 — — 5,392 2,620,907 2,626,299 Construction and land — — — — — — — 238,293 238,293 Residential 12,967 — 12,967 9,024 2,056 4,994 16,074 2,812,885 2,841,926 Home equity — 319 319 180 — 1,296 1,476 87,555 89,350 Consumer and other 73 — 73 1 — — 1 131,333 131,407 Total $ 14,441 $ 411 $ 14,852 $ 14,978 $ 2,056 $ 7,280 $ 24,314 $ 7,004,172 $ 7,043,338 December 31, 2019 Accruing Past Due Nonaccrual Loans 30-59 Days Past Due 60-89 Days Past Due Total Accruing Past Due Current 30-89 Days Past Due 90 Days or Greater Past Due Total Non-Accrual Loans Current Accruing Loans Total Loans Receivable (In thousands) Commercial and industrial $ 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 |
Financing receivable credit quality indicators | The following tables present the loan portfolio’s credit risk profile by internally assigned grade and class of receivable as of the dates indicated: March 31, 2020 By Loan Grade or Nonaccrual Status Pass Special Accruing Nonaccrual Total (In thousands) Commercial and industrial $ 609,537 $ 9,428 $ 50,408 $ 1,371 $ 670,744 Commercial tax-exempt 434,259 2,516 8,544 — 445,319 Commercial real estate 2,517,306 79,909 23,692 5,392 2,626,299 Construction and land 237,823 470 — — 238,293 Residential 2,821,611 — 4,241 16,074 2,841,926 Home equity 86,811 — 1,063 1,476 89,350 Consumer and other 131,106 300 — 1 131,407 Total $ 6,838,453 $ 92,623 $ 87,948 $ 24,314 $ 7,043,338 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 ______________________ (1) Accruing Classified may include both Substandard and Doubtful classifications. The following table presents the loan portfolio’s credit risk profile by loan origination year and class of receivable as of the dates indicated: March 31, 2020 Loan Origination Year By Loan Grade or Nonaccrual Status 2020 2019 2018 2017 2016 2015 & Prior Total (In thousands) Commercial and industrial Pass $ 26,987 $ 149,993 $ 147,350 $ 51,752 $ 39,825 $ 193,630 $ 609,537 Special Mention — 488 1,765 3,836 232 3,107 9,428 Accruing Classified (1) 50 25,225 3,602 14,969 2,520 4,042 50,408 Nonaccrual — 171 — 210 735 255 1,371 Total $ 27,037 $ 175,877 $ 152,717 $ 70,767 $ 43,312 $ 201,034 $ 670,744 Commercial tax-exempt Pass $ — $ 13,741 $ 41,012 $ 24,823 $ 108,057 $ 246,626 $ 434,259 Special Mention — — — — — 2,516 2,516 Accruing Classified (1) — — — 4,021 — 4,523 8,544 Total $ — $ 13,741 $ 41,012 $ 28,844 $ 108,057 $ 253,665 $ 445,319 Commercial real estate Pass $ 71,236 $ 491,954 $ 310,679 $ 349,161 $ 432,649 $ 861,627 $ 2,517,306 Special Mention — 22,855 13,322 15,324 19,325 9,083 79,909 Accruing Classified (1) — 1,424 — 1,184 8,919 12,165 23,692 Nonaccrual — 5,392 — — — — 5,392 Total $ 71,236 $ 521,625 $ 324,001 $ 365,669 $ 460,893 $ 882,875 $ 2,626,299 Construction and land Pass $ 3,731 $ 52,620 $ 84,692 $ 53,428 $ 16,820 $ 26,532 $ 237,823 Special Mention — — 470 — — — 470 Total $ 3,731 $ 52,620 $ 85,162 $ 53,428 $ 16,820 $ 26,532 $ 238,293 Residential Pass $ 131,395 $ 612,100 $ 480,529 $ 504,672 $ 471,195 $ 621,720 $ 2,821,611 Accruing Classified (1) — — — — — 4,241 4,241 Nonaccrual — 263 1,089 2,532 — 12,190 16,074 Total $ 131,395 $ 612,363 $ 481,618 $ 507,204 $ 471,195 $ 638,151 $ 2,841,926 Home equity Pass $ 1,325 $ 13,322 $ 15,847 $ 7,781 $ 6,833 $ 41,703 $ 86,811 Accruing Classified (1) — — — — — 1,063 1,063 Nonaccrual — — — — 139 1,337 1,476 Total $ 1,325 $ 13,322 $ 15,847 $ 7,781 $ 6,972 $ 44,103 $ 89,350 Consumer and other Pass $ 6,326 $ 15,684 $ 23,993 $ 31,032 $ 5,227 $ 48,844 $ 131,106 Special Mention — — — 300 — — 300 Nonaccrual — — — — — 1 1 Total $ 6,326 $ 15,684 $ 23,993 $ 31,332 $ 5,227 $ 48,845 $ 131,407 Total Pass $ 241,000 $ 1,349,414 $ 1,104,102 $ 1,022,649 $ 1,080,606 $ 2,040,682 $ 6,838,453 Special Mention — 23,343 15,557 19,460 19,557 14,706 92,623 Accruing Classified (1) 50 26,649 3,602 20,174 11,439 26,034 87,948 Nonaccrual — 5,826 1,089 2,742 874 13,783 24,314 Total $ 241,050 $ 1,405,232 $ 1,124,350 $ 1,065,025 $ 1,112,476 $ 2,095,205 $ 7,043,338 ______________________ (1) Accruing Classified may include both Substandard and Doubtful classifications. |
Impaired financing receivables | The following tables present, by class of receivable, the balance of impaired loans with and without a related allowance, the associated allowance for those impaired loans with a related allowance, and the total unpaid principal on impaired loans: As of and for the three months ended March 31, 2020 Recorded Investment (1) Unpaid Principal Balance Related Allowance YTD Average Recorded Investment YTD Interest Income Recognized while Impaired (In thousands) With no related allowance recorded: Commercial and industrial $ 555 $ 632 n/a $ 667 $ 6 Commercial tax-exempt — — n/a — — Commercial real estate 6,119 6,151 n/a 2,403 9 Construction and land — — n/a — — Residential 16,352 16,612 n/a 15,587 117 Home equity 1,548 2,109 n/a 1,550 3 Consumer and other — — n/a — — Subtotal $ 24,574 $ 25,504 n/a $ 20,207 $ 135 With an allowance recorded: Commercial and industrial $ 273 $ 280 $ 175 $ 281 $ — Commercial tax-exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential 532 532 64 535 4 Home equity 270 270 20 271 2 Consumer and other — — — — — Subtotal $ 1,075 $ 1,082 $ 259 $ 1,087 $ 6 Total: Commercial and industrial $ 828 $ 912 $ 175 $ 948 $ 6 Commercial tax-exempt — — — — — Commercial real estate 6,119 6,151 — 2,403 9 Construction and land — — — — — Residential 16,884 17,144 64 16,122 121 Home equity 1,818 2,379 20 1,821 5 Consumer and other — — — — — Total $ 25,649 $ 26,586 $ 259 $ 21,294 $ 141 _____________________ (1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal. As of and for the three months ended March 31, 2019 Recorded Investment (1) Unpaid Principal Balance Related Allowance YTD Average Recorded Investment YTD Interest Income Recognized while Impaired (In thousands) With no related allowance recorded: Commercial and industrial $ 862 $ 1,730 n/a $ 1,021 $ 15 Commercial tax-exempt — — n/a — — Commercial real estate — — n/a 136 256 Construction and land — — n/a — — Residential 12,306 12,566 n/a 11,056 137 Home equity 2,147 2,709 n/a 1,709 — Consumer and other — — n/a — — Subtotal $ 15,315 $ 17,005 n/a $ 13,922 $ 408 With an allowance recorded: Commercial and industrial $ 1,302 $ 1,353 $ 231 $ 1,542 $ 16 Commercial tax-exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential 597 597 68 732 7 Home equity — — — 1,290 — Consumer and other — — — — — Subtotal $ 1,899 $ 1,950 $ 299 $ 3,564 $ 23 Total: Commercial and industrial $ 2,164 $ 3,083 $ 231 $ 2,563 $ 31 Commercial tax-exempt — — — — — Commercial real estate — — — 136 256 Construction and land — — — — — Residential 12,903 13,163 68 11,788 144 Home equity 2,147 2,709 — 2,999 — Consumer and other — — — — — Total $ 17,214 $ 18,955 $ 299 $ 17,486 $ 431 _____________________ (1) Recorded investment represents the client loan balance net of historical charge offs and historical nonaccrual interest paid, if applicable, which was applied to principal. As of and for the year ended December 31, 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 _____________________ |
Troubled debt restructurings on financing receivables | The following tables present the balance of TDRs that were restructured or defaulted during the periods indicated: As of and for the three months ended March 31, 2020 Restructured Year to Date TDRs that defaulted in the Year to Date that were restructured # of Pre- Post- # of Post- (In thousands, except number of loans) Commercial and industrial (1) 1 $ 50 $ 50 — $ — Commercial tax exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential (2) 1 2,373 2,373 — — Home equity — — — — — Consumer and other — — — — — Total 2 $ 2,423 $ 2,423 — $ — _____________________ (1) Represents the following type of concession: extension of maturity, reduction in interest rate. (2) Represents the following type of concession: payment deferral. As of and for the three months ended March 31, 2019 Restructured Current Quarter TDRs that defaulted in the Current Quarter that were restructured in prior twelve months # of Loans Pre- modification recorded investment Post- modification recorded investment # of Loans Post- modification recorded investment (In thousands, except number of loans) Commercial and industrial (1) 1 $ 179 $ 179 — $ — Commercial tax exempt — — — — — Commercial real estate — — — — — Construction and land — — — — — Residential (2) 1 3,000 3,000 — — Home equity — — — — — Consumer and other — — — — — Total 2 $ 3,179 $ 3,179 — $ — _____________________ (1) Represents the following type of concession: extension of term. (2) Represents the following type of concession: temporary reduction of interest rate. In the first quarter of 2020, in response to the COVID-19 pandemic, the Bank initiated a mortgage deferment program under which principal and interest payments on qualifying loans are generally deferred for three months and the loan term is extended three months. Loans that are deferred under the program are not considered TDRs or past due based on current regulatory guidance. As of March 31, 2020, 10 loans totaling approximately $5.0 million were approved under the program. As this program was started late in the first quarter of 2020, the Bank has been experiencing increased volume in the second quarter of 2020 due to the COVID-19 pandemic. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 16: Subsequent Events” for additional information on the mortgage deferment program. Loan participations serviced for others and loans serviced for others are not included in the Company’s total loans. |
Loan participation amounts by loan type | The following table presents a summary of the loan participations serviced for others and loans serviced for others based on class of receivable as of the dates indicated: March 31, 2020 December 31, 2019 (In thousands) Commercial and industrial $ 14,706 $ 14,533 Commercial tax-exempt 17,959 18,101 Commercial real estate 117,782 121,929 Construction and land 79,517 75,451 Total loan participations serviced for others $ 229,964 $ 230,014 Residential $ 145,299 $ 204,696 Total loans serviced for others $ 145,299 $ 204,696 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Allowance for credit losses on financing receivables | The following tables present a summary of the changes in the allowance for loan losses for the periods indicated: As of and for the three months ended March 31, 2020 2019 (In thousands) Allowance for loan losses, beginning of period: Commercial and industrial $ 10,048 $ 15,912 Commercial tax-exempt 6,016 n/a Commercial real estate 40,765 41,934 Construction and land 5,119 6,022 Residential 8,857 10,026 Home equity 778 1,284 Consumer and other 399 134 Total allowance for loan losses, beginning of period $ 71,982 $ 75,312 Impact of adopting ASU 2016-13: Commercial and industrial $ (565) n/a Commercial tax-exempt (4,409) n/a Commercial real estate (14,455) n/a Construction and land (2,158) n/a Residential 685 n/a Home equity (535) n/a Consumer and other 1,052 n/a Total impact of adopting ASU 2016-13 $ (20,385) n/a Provision/(credit) for loan losses: Commercial and industrial $ 1,245 $ (413) Commercial tax-exempt 320 n/a Commercial real estate 10,270 (310) Construction and land 2,748 (669) Residential 2,237 (69) Home equity (72) 74 Consumer and other 214 (39) Total provision/(credit) for loan losses $ 16,962 $ (1,426) Loans charged off: Commercial and industrial $ (518) $ — Commercial tax-exempt — — Commercial real estate — — Construction and land — — Residential — — Home equity — (562) Consumer and other (10) (2) Total charge offs $ (528) $ (564) Recoveries on loans previously charged off: Commercial and industrial $ 45 $ 188 Commercial tax-exempt — — Commercial real estate — 189 Construction and land — — Residential — 100 Home equity 132 — Consumer and other 3 15 Total recoveries $ 180 $ 492 Allowance for loan losses, end of period: Commercial and industrial $ 10,255 $ 15,687 Commercial tax-exempt 1,927 n/a Commercial real estate 36,580 41,813 Construction and land 5,709 5,353 Residential 11,779 10,057 Home equity 303 796 Consumer and other 1,658 108 Total allowance for loan losses, end of period $ 68,211 $ 73,814 |
Allowance by method of impairment analysis | The following tables present the Company’s allowance for loan losses and loan portfolio as of March 31, 2020 and December 31, 2019 by portfolio segment, disaggregated by method of impairment analysis. The Company had no loans acquired with deteriorated credit quality as of March 31, 2020 or December 31, 2019. March 31, 2020 Individually Evaluated Collectively Evaluated Total Recorded investment Allowance for loan losses Recorded investment Allowance for loan losses Recorded investment Allowance for loan losses (In thousands) Commercial and industrial $ 828 $ 175 $ 669,916 $ 10,080 $ 670,744 $ 10,255 Commercial tax-exempt — — 445,319 1,927 445,319 1,927 Commercial real estate 6,119 — 2,620,180 36,580 2,626,299 36,580 Construction and land — — 238,293 5,709 238,293 5,709 Residential 16,884 64 2,825,042 11,715 2,841,926 11,779 Home equity 1,818 20 87,532 283 89,350 303 Consumer and other — — 131,407 1,658 131,407 1,658 Total $ 25,649 $ 259 $ 7,017,689 $ 67,952 $ 7,043,338 $ 68,211 December 31, 2019 Individually Evaluated Collectively Evaluated Total Recorded investment Allowance for loan losses Recorded investment Allowance for loan losses Recorded investment Allowance for loan losses (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 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 Asset derivatives Liability derivatives Asset derivatives Liability derivatives Balance Fair Balance Fair Balance Fair Balance Fair (In thousands) Derivatives not designated as hedging instruments: Interest rate customer swaps Other assets 93,391 Other liabilities 94,437 Other assets 36,089 Other liabilities 36,580 Risk participation agreements Other assets 46 Other liabilities 480 Other assets 10 Other liabilities 242 Total $ 93,437 $ 94,917 $ 36,099 $ 36,822 _____________________ (1) For additional details, see Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 5: Fair Value Measurements.” |
Schedule of derivative instruments, gain (loss) in statement of financial performance | The following table presents the effect of the Company’s derivative financial instruments on accumulated other comprehensive income for the three months ended March 31, 2020 and 2019: Derivatives in cash Amount of gain or (loss) recognized in OCI on derivatives Location of gain Amount of gain or (loss) reclassified from accumulated OCI into income Three months ended March 31, Three months ended March 31, 2020 2019 2020 2019 (In thousands) (In thousands) Interest rate swaps $ — $ (38) Interest expense $ — $ (311) Total $ — $ (38) $ — $ (311) The following table presents the effect of the Company’s derivative financial instruments in the Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019: Location of gain or (loss) reclassified from accumulated Amount of gain or Three months ended March 31, 2020 2019 (In thousands) Total amounts of income and (expense) line items presented in the statement of operations in which the effects of fair value or cash flow hedges are recorded Interest expense $ — $ (311) The effects of cash flow hedging: Gain or (loss) on cash flow hedging relationships in ASC 815 Interest contracts - amount of gain or (loss) reclassified from accumulated other comprehensive income into income Interest expense $ — $ (311) |
Derivatives not designated as hedging instrument | The following table presents the effect of the Bank’s derivative financial instruments not designated as hedging instruments in the Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019. Amount of gain or (loss), net, Derivatives not designated as Location of gain or (loss) recognized in income on derivatives Three months ended March 31, 2020 2019 (In thousands) Interest rate swaps Other income/ (expense) $ (555) $ (191) Risk participation agreements Other income/ (expense) (202) 104 Total $ (757) $ (87) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | The following table presents the components of income tax expense and effective tax rates for the periods indicated: Three months ended March 31, 2020 2019 (In thousands) Income before income taxes $ 908 $ 24,459 Income tax expense 102 4,917 Net income before attribution to noncontrolling interests $ 806 $ 19,542 Effective tax rate 11.2 % 20.1 % |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Consolidation, less than wholly owned subsidiary, parent ownership interest, effects of changes, net | The following table presents a rollforward of the Company’s redeemable noncontrolling interests for the periods indicated: Three months ended March 31, 2020 March 31, 2019 (In thousands) Redeemable noncontrolling interests at beginning of period $ 1,383 $ 2,526 Net income attributable to noncontrolling interests 6 100 Distributions (6) (100) Purchases/(sales) of ownership interests (64) 12 Amortization of equity compensation 8 17 Adjustments to fair value (1,327) (1,893) Redeemable noncontrolling interests at end of period $ — $ 662 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Reclassification out of accumulated other comprehensive income | The following table presents a summary of the amounts reclassified from Accumulated other comprehensive income/ (loss) for the three months ended March 31, 2020 and 2019: Description of component of Accumulated other comprehensive income/(loss) Three months ended March 31, Affected line item in 2020 2019 (In thousands) Net realized gain/(loss) on cash flow hedges: Hedges related to deposits: Pre-tax gain/(loss) $ — $ (311) Interest (expense) Tax (expense)/ benefit — (91) Income tax (expense)/benefit Net $ — $ (220) Net income/(loss) attributable to the Company Total reclassifications for the period, net of tax $ — $ (220) |
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 three months ended March 31, 2020 and 2019: Components of Accumulated other comprehensive income/(loss) Unrealized Unrealized Unrealized Accumulated (In thousands) Balance at December 31, 2018 $ (17,556) $ 391 $ (554) $ (17,719) Other comprehensive income/(loss) before reclassifications 11,568 (27) — 11,541 Reclassified from other comprehensive income/(loss) — (220) — (220) Other comprehensive income/(loss), net 11,568 (247) — 11,321 Balance at March 31, 2019 $ (5,988) $ 144 $ (554) $ (6,398) Balance at December 31, 2019 $ 8,435 $ — $ (860) $ 7,575 Other comprehensive income/(loss) before reclassifications 14,489 — — 14,489 Other comprehensive income/(loss), net 14,489 — — 14,489 Balance at March 31, 2020 $ 22,924 $ — $ (860) $ 22,064 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring activity | The following table presents a summary of the restructuring activity for the three months ended March 31, 2020 and 2019: Severance Charges Other Associated Costs Total (In thousands) Accrued charges at December 31, 2019 $ 526 $ 789 $ 1,315 Costs paid (434) — (434) Accrued charges at March 31, 2020 $ 92 $ 789 $ 881 Accrued charges at December 31, 2018 $ 3,896 $ 789 $ 4,685 Cost incurred 1,646 — 1,646 Costs paid (1,986) — (1,986) Accrued charges at March 31, 2019 $ 3,556 $ 789 $ 4,345 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition [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: Three months ended March 31, 2020 2019 (In thousands) Fees and other income: Wealth management and trust fees $ 18,371 $ 19,058 Investment management fees 1,925 2,650 Other income 752 684 Revenue from contracts with customers 21,048 22,392 Non-interest income within the scope of other GAAP topics 473 2,856 Total non-interest income $ 21,521 $ 25,248 |
Lease Accounting (Tables)
Lease Accounting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of lease cost | The following table presents information about the Company's leases as of the dates indicated. Three months ended March 31, 2020 2019 (In thousands) Lease cost Operating lease cost $ 4,601 $ 4,685 Short-term lease cost 48 32 Variable lease cost (9) 2 Less: Sublease income (28) (18) Total operating lease cost $ 4,612 $ 4,701 Three months ended March 31, 2020 (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 $ 5,100 ROU assets obtained in exchange for new operating lease liabilities $ 443 Weighted-average remaining lease term for operating leases 7.9 years Weighted-average discount rate for operating leases 3.2 % |
Schedule of minimum payment obligation | The Company is obligated for minimum payments under non-cancelable operating leases. In accordance with the terms of these leases, the Company is currently committed to minimum annual payments as follows as of March 31, 2020: March 31, 2020 (In thousands) Remainder of 2020 $ 14,962 2021 19,974 2022 19,934 2023 18,984 2024 12,961 Thereafter 44,194 Total future minimum lease payments 131,009 Less: Amounts representing interest (17,435) Present value of net future minimum lease payments $ 113,574 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | Jan. 01, 2020USD ($) | Mar. 31, 2020USD ($)segmentmarket | Aug. 31, 2019affiliatesegment | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Number of reportable segments | segment | 2 | 3 | ||
Number of affiliates | affiliate | 2 | |||
Impact due to change in accounting principles | [1] | $ 13,492 | ||
Private Banking | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Number of geographic markets | market | 3 | |||
ASU 2016-13 | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Release in allowance for credit losses on adoption of ASU 2016-13 | $ (20,385) | |||
Increase to reserve for unfunded loan commitments | 1,400 | |||
Impact due to change in accounting principles | $ 13,500 | |||
[1] | Impact due to the adoption of ASU 2016-13, Financial Instruments (Topic 326) (“ASU 2016-13”). See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 15: Recent Accounting Pronouncements.” |
Earnings Per Share Basic (Detai
Earnings Per Share Basic (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic earnings per share - Numerator: | ||
Net income before attribution to noncontrolling interests | $ 806 | $ 19,542 |
Less: Net income attributable to noncontrolling interests | 6 | 100 |
Net income attributable to the Company | 800 | 19,442 |
Decrease in noncontrolling interests’ redemption values | 414 | 1,557 |
Total adjustments to income attributable to common shareholders | 414 | 1,557 |
Net income attributable to common shareholders, treasury stock method | $ 1,214 | $ 20,999 |
Basic earnings per share - Denominator: | ||
Weighted average basic common shares outstanding (in shares) | 83,005,064 | 83,285,095 |
Per share data - Basic earnings per share: | ||
Total attributable to common shareholders (in dollars per share) | $ 0.01 | $ 0.25 |
Earnings Per Share Diluted (Det
Earnings Per Share Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Diluted earnings per share - Numerator: | ||
Net income attributable to common shareholders, after assumed dilution | $ 1,214 | $ 20,999 |
Diluted earnings per share - Denominator: | ||
Weighted average basic common shares outstanding (in shares) | 83,005,064 | 83,285,095 |
Dilutive effect of: | ||
Time-based and market-based stock options, performance-based and time-based restricted stock, and performance-based and time-based restricted stock units, and other dilutive securities (in shares) | 312,977 | 725,355 |
Dilutive common shares (in shares) | 312,977 | 725,355 |
Weighted average diluted common shares outstanding (in shares) | 83,318,041 | 84,010,450 |
Per share data - Diluted earnings per share: | ||
Total attributable to common shareholders (in dollars per share) | $ 0.01 | $ 0.25 |
Dividends per share declared and paid on common stock (in dollars per share) | $ 0.12 | $ 0.12 |
Earnings Per Share Securities E
Earnings Per Share Securities Excluded Due to Exercise Price Exceeding Average Price During Period (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Shares Excluded Due to Exercise Price Exceeding Average Price During Period [Line Items] | ||
Total shares excluded due to exercise price exceeding the average market price of common shares during the period (in shares) | 1,254,000 | 796,000 |
Options, restricted stock, or other dilutive securities | ||
Shares Excluded Due to Exercise Price Exceeding Average Price During Period [Line Items] | ||
Total shares excluded due to exercise price exceeding the average market price of common shares during the period (in shares) | 1,254,000 | 796,000 |
Reportable Segments Narrative (
Reportable Segments Narrative (Details) | 3 Months Ended | 8 Months Ended |
Mar. 31, 2020segmentmarket | Aug. 31, 2019segment | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | 3 |
Private Banking | ||
Segment Reporting Information [Line Items] | ||
Number of geographic markets | market | 3 |
Reportable Segments Reconciliat
Reportable Segments Reconciliation of Reportable Segment Items (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net interest income | $ 57,257 | $ 58,338 | |
Fees and other income | 21,521 | 25,248 | |
Total revenue | 78,778 | 83,586 | |
Provision/(credit) for loan losses | 16,962 | (1,426) | |
Operating expense | 60,908 | 60,553 | |
Income before income taxes | 908 | 24,459 | |
Income tax expense | 102 | 4,917 | |
Net income before attribution to noncontrolling interests | 806 | 19,542 | |
Noncontrolling interests | 6 | 100 | |
Net income attributable to the Company | 800 | 19,442 | |
Assets | 8,746,326 | 8,572,143 | $ 8,830,501 |
Amortization of intangibles | 715 | 672 | |
Depreciation | 2,959 | 3,084 | |
Restructuring charges | 0 | 1,646 | |
Operating Segments | Private Banking (1) | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 58,090 | 59,337 | |
Fees and other income | 1,108 | 3,258 | |
Total revenue | 59,198 | 62,595 | |
Provision/(credit) for loan losses | 16,962 | (1,426) | |
Operating expense | 42,588 | 41,317 | |
Income before income taxes | (352) | 22,704 | |
Income tax expense | (931) | 4,430 | |
Net income before attribution to noncontrolling interests | 579 | 18,274 | |
Net income attributable to the Company | 579 | 18,274 | |
Assets | 8,692,069 | 8,481,160 | |
Amortization of intangibles | 77 | 0 | |
Depreciation | 2,626 | 2,670 | |
Operating Segments | Wealth Management and Trust (1) | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 72 | 106 | |
Fees and other income | 18,485 | 19,126 | |
Total revenue | 18,557 | 19,232 | |
Operating expense | 15,449 | 15,567 | |
Income before income taxes | 3,108 | 3,665 | |
Income tax expense | 1,074 | 1,194 | |
Net income before attribution to noncontrolling interests | 2,034 | 2,471 | |
Net income attributable to the Company | 2,034 | 2,471 | |
Assets | 143,998 | 147,771 | |
Amortization of intangibles | 638 | 672 | |
Depreciation | 294 | 367 | |
Holding Company and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net interest income | (905) | (1,105) | |
Fees and other income | 1,928 | 2,864 | |
Total revenue | 1,023 | 1,759 | |
Operating expense | 2,871 | 3,669 | |
Income before income taxes | (1,848) | (1,910) | |
Income tax expense | (41) | (707) | |
Net income before attribution to noncontrolling interests | (1,807) | (1,203) | |
Noncontrolling interests | 6 | 100 | |
Net income attributable to the Company | (1,813) | (1,303) | |
Assets | (89,741) | (56,788) | |
Depreciation | $ 39 | 47 | |
Interest expense | Operating Segments | Private Banking (1) | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges | 1,300 | ||
Interest expense | Operating Segments | Wealth Management and Trust (1) | |||
Segment Reporting Information [Line Items] | |||
Restructuring charges | $ 400 |
Investments Schedule of Availab
Investments Schedule of Available-for-sale and Held-to-Maturity Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available-for-sale securities at fair value: | ||
Amortized Cost | $ 961,351 | $ 966,900 |
Unrealized Gains | 32,182 | 15,002 |
Unrealized Losses | (367) | (3,618) |
Fair Value | 993,166 | 978,284 |
Held-to-maturity securities at amortized cost: | ||
Amortized Cost | 45,395 | 48,212 |
Unrealized Gains | 731 | 53 |
Unrealized Losses | (30) | (316) |
Fair Value | 46,096 | 47,949 |
Equity securities at fair value: | ||
Amortized Cost | 23,080 | 18,810 |
Fair Value | 23,080 | 18,810 |
U.S. government and agencies | ||
Available-for-sale securities at fair value: | ||
Amortized Cost | 19,957 | 19,955 |
Unrealized Gains | 1,130 | 42 |
Unrealized Losses | 0 | (57) |
Fair Value | 21,087 | 19,940 |
Government-sponsored entities | ||
Available-for-sale securities at fair value: | ||
Amortized Cost | 154,844 | 154,963 |
Unrealized Gains | 5,598 | 1,292 |
Unrealized Losses | 0 | 0 |
Fair Value | 160,442 | 156,255 |
Municipal bonds | ||
Available-for-sale securities at fair value: | ||
Amortized Cost | 319,844 | 312,977 |
Unrealized Gains | 12,784 | 12,551 |
Unrealized Losses | (128) | (73) |
Fair Value | 332,500 | 325,455 |
Mortgage-backed securities | ||
Available-for-sale securities at fair value: | ||
Amortized Cost | 466,706 | 479,005 |
Unrealized Gains | 12,670 | 1,117 |
Unrealized Losses | (239) | (3,488) |
Fair Value | 479,137 | 476,634 |
Held-to-maturity securities at amortized cost: | ||
Amortized Cost | 45,395 | 48,212 |
Unrealized Gains | 731 | 53 |
Unrealized Losses | (30) | (316) |
Fair Value | 46,096 | 47,949 |
Money market mutual funds | ||
Equity securities at fair value: | ||
Amortized Cost | 23,080 | 18,810 |
Fair Value | $ 23,080 | $ 18,810 |
Investments Assessment for Cred
Investments Assessment for Credit Impairment (Details) | 3 Months Ended | |
Mar. 31, 2020USD ($)security | Mar. 31, 2019USD ($) | |
Investments [Abstract] | ||
Past due held-to-maturity securities | $ 0 | |
Credit allowance, held-to-maturity investment portfolio | $ 0 | |
Number of available-for-sale securities with impairment | security | 0 | |
Credit allowance, available-for-sale investment portfolio | $ 0 | |
Sales of equity securities | $ 0 | $ 0 |
Investments Maturities of AFS S
Investments Maturities of AFS Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Within one year | $ 33,686 | |
After one, but within five years | 312,665 | |
After five, but within ten years | 230,955 | |
Greater than ten years | 384,045 | |
Amortized Cost | 961,351 | $ 966,900 |
Fair Value | ||
Within one year | 33,916 | |
After one, but within five years | 322,256 | |
After five, but within ten years | 239,899 | |
Greater than ten years | 397,095 | |
Total | $ 993,166 | $ 978,284 |
Investments Maturities of HTM S
Investments Maturities of HTM Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
After five, but within ten years | $ 37,086 | |
Greater than ten years | 8,309 | |
Amortized Cost | 45,395 | $ 48,212 |
Fair Value | ||
After five, but within ten years | 37,569 | |
Greater than ten years | 8,527 | |
Total | $ 46,096 | $ 47,949 |
Investments Maturities of Equit
Investments Maturities of Equity Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Within one year | $ 23,080 | |
Total | 23,080 | |
Fair Value | ||
Within one year | 23,080 | |
Total | $ 23,080 | $ 18,810 |
Investments Investment Securiti
Investments Investment Securities in Unrealized Loss Position (Details) $ in Thousands | Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Fair Value | ||
Less than 12 months | $ 17,577 | $ 161,496 |
12 months or longer | 18,972 | 187,043 |
Total | 36,549 | 348,539 |
Unrealized Losses | ||
Less than 12 months | (153) | (1,146) |
12 months or longer | (214) | (2,472) |
Less than 12 months | $ (367) | $ (3,618) |
Number of securities | security | 39,000 | 91 |
Fair Value | ||
Less than 12 months | $ 0 | $ 10,328 |
12 months or longer | 4,442 | 30,451 |
Total | 4,442 | 40,779 |
Unrealized Losses | ||
Less than 12 months | 0 | (11) |
12 months or longer | (30) | (305) |
Total | $ (30) | $ (316) |
Number of securities | security | 2,000 | 14 |
U.S. government and agencies | ||
Fair Value | ||
Less than 12 months | $ 9,899 | |
12 months or longer | 0 | |
Total | 9,899 | |
Unrealized Losses | ||
Less than 12 months | (57) | |
12 months or longer | 0 | |
Less than 12 months | $ (57) | |
Number of securities | security | 1 | |
Government-sponsored entities | ||
Fair Value | ||
Less than 12 months | $ 1,725 | |
12 months or longer | 0 | |
Total | 1,725 | |
Unrealized Losses | ||
Less than 12 months | 0 | |
12 months or longer | 0 | |
Less than 12 months | $ 0 | |
Number of securities | security | 1 | |
Municipal bonds | ||
Fair Value | ||
Less than 12 months | $ 14,009 | $ 9,149 |
12 months or longer | 0 | 0 |
Total | 14,009 | 9,149 |
Unrealized Losses | ||
Less than 12 months | (128) | (73) |
12 months or longer | 0 | 0 |
Less than 12 months | $ (128) | $ (73) |
Number of securities | security | 3,000 | 4 |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | $ 3,568 | $ 140,723 |
12 months or longer | 18,972 | 187,043 |
Total | 22,540 | 327,766 |
Unrealized Losses | ||
Less than 12 months | (25) | (1,016) |
12 months or longer | (214) | (2,472) |
Less than 12 months | $ (239) | $ (3,488) |
Number of securities | security | 36,000 | 85 |
Fair Value | ||
Less than 12 months | $ 0 | $ 10,328 |
12 months or longer | 4,442 | 30,451 |
Total | 4,442 | 40,779 |
Unrealized Losses | ||
Less than 12 months | 0 | (11) |
12 months or longer | (30) | (305) |
Total | $ (30) | $ (316) |
Number of securities | security | 2,000 | 14 |
Investments Other Investment Di
Investments Other Investment Disclosures (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Investments [Abstract] | ||
Other investments with unrealized losses | $ 0 | $ 0 |
Investments in low income housing projects | $ 66,100,000 | $ 65,500,000 |
Fair Value Measurements Recurri
Fair Value Measurements Recurring Basis (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Available-for-sale securities: | $ 993,166,000 | $ 978,284,000 |
Equity securities | 23,080,000 | 18,810,000 |
U.S. government and agencies | ||
Assets: | ||
Available-for-sale securities: | 21,087,000 | 19,940,000 |
Government-sponsored entities | ||
Assets: | ||
Available-for-sale securities: | 160,442,000 | 156,255,000 |
Municipal bonds | ||
Assets: | ||
Available-for-sale securities: | 332,500,000 | 325,455,000 |
Mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities: | 479,137,000 | 476,634,000 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Available-for-sale securities: | 993,166,000 | 978,284,000 |
Trading securities held in the “rabbi trust” | 5,550,000 | 6,119,000 |
Liabilities: | ||
Deferred compensation “rabbi trust” | 5,550,000 | 6,112,000 |
Fair Value, Measurements, Recurring | U.S. government and agencies | ||
Assets: | ||
Available-for-sale securities: | 21,087,000 | 19,940,000 |
Fair Value, Measurements, Recurring | Government-sponsored entities | ||
Assets: | ||
Available-for-sale securities: | 160,442,000 | 156,255,000 |
Fair Value, Measurements, Recurring | Municipal bonds | ||
Assets: | ||
Available-for-sale securities: | 332,500,000 | 325,455,000 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities: | 479,137,000 | 476,634,000 |
Fair Value, Measurements, Recurring | Interest rate customer swaps | ||
Assets: | ||
Derivatives | 93,391,000 | 36,089,000 |
Liabilities: | ||
Derivatives | 94,437,000 | 36,580,000 |
Fair Value, Measurements, Recurring | Risk participation agreements | ||
Assets: | ||
Derivatives | 46,000 | 10,000 |
Liabilities: | ||
Derivatives | 480,000 | 242,000 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Equity securities | 23,080,000 | 18,810,000 |
Trading securities held in the “rabbi trust” | 5,550,000 | 6,119,000 |
Liabilities: | ||
Deferred compensation “rabbi trust” | 5,550,000 | 6,112,000 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | U.S. government and agencies | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | Government-sponsored entities | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | Municipal bonds | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | Mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | Interest rate customer swaps | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (Level 1) | Risk participation agreements | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | ||
Assets: | ||
Available-for-sale securities: | 993,166,000 | 978,284,000 |
Equity securities | 0 | 0 |
Trading securities held in the “rabbi trust” | 0 | 0 |
Liabilities: | ||
Deferred compensation “rabbi trust” | 0 | 0 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | U.S. government and agencies | ||
Assets: | ||
Available-for-sale securities: | 21,087,000 | 19,940,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Government-sponsored entities | ||
Assets: | ||
Available-for-sale securities: | 160,442,000 | 156,255,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Municipal bonds | ||
Assets: | ||
Available-for-sale securities: | 332,500,000 | 325,455,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities: | 479,137,000 | 476,634,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Interest rate customer swaps | ||
Assets: | ||
Derivatives | 93,391,000 | 36,089,000 |
Liabilities: | ||
Derivatives | 94,437,000 | 36,580,000 |
Fair Value, Measurements, Recurring | Significant other observable inputs (Level 2) | Risk participation agreements | ||
Assets: | ||
Derivatives | 46,000 | 10,000 |
Liabilities: | ||
Derivatives | 480,000 | 242,000 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Equity securities | 0 | 0 |
Trading securities held in the “rabbi trust” | 0 | 0 |
Liabilities: | ||
Deferred compensation “rabbi trust” | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | U.S. government and agencies | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Government-sponsored entities | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Municipal bonds | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities: | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Interest rate customer swaps | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | Risk participation agreements | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivatives | $ 0 | $ 0 |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities: | $ 993,166,000 | $ 978,284,000 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities: | 993,166,000 | 978,284,000 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities: | 0 | 0 |
Assets value | $ 0 | $ 0 |
Fair Value Measurements Nonrecu
Fair Value Measurements Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Fair value measurements at reporting date using: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets: Impaired loans | $ 6,752,894 | $ 6,883,360 | |
Fair value measurements at reporting date using: | Quoted prices in active markets for identical assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets: Impaired loans | 0 | 0 | |
Fair value measurements at reporting date using: | Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets: Impaired loans | 0 | 0 | |
Fair value measurements at reporting date using: | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets: Impaired loans | 6,752,894 | $ 6,883,360 | |
Fair value measurements at reporting date using: | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets: Impaired loans | 97 | $ 957 | |
Fair value measurements at reporting date using: | Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets: Impaired loans | 0 | 0 | |
Fair value measurements at reporting date using: | Fair Value, Measurements, Nonrecurring | Significant other observable inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets: Impaired loans | 0 | 0 | |
Fair value measurements at reporting date using: | Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets: Impaired loans | 97 | 957 | |
Gain (losses) from fair value changes | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (losses) from fair value changes | $ 21 | $ 372 |
Fair Value Measurements Quantit
Fair Value Measurements Quantitative Information about Level 3 Non-Recurring Assets (Details) - Significant unobservable inputs (Level 3) - Fair Value, Measurements, Nonrecurring $ in Thousands | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) |
Substandard [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair Value | $ 97 | $ 957 |
Discount for costs to sell | Weighted Average of Inputs Utilized | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair Value, non-recurring basis, weighted average unobservable input | 0.10 | 0.01 |
Discount for costs to sell | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair Value, non-recurring basis, weighted average unobservable input | 0.10 | 0 |
Discount for costs to sell | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair Value, non-recurring basis, weighted average unobservable input | 0.10 | 0.06 |
Appraisal adjustments | Weighted Average of Inputs Utilized | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair Value, non-recurring basis, weighted average unobservable input | 0 | 0 |
Fair Value Measurements Not Mea
Fair Value Measurements Not Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
FINANCIAL ASSETS: | ||
Investment securities held-to-maturity | $ 46,096 | $ 47,949 |
Book Value | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 61,714 | 292,479 |
Investment securities held-to-maturity | 45,395 | 48,212 |
Loans held for sale | 7,671 | 7,386 |
Loans, net | 6,975,127 | 6,904,722 |
Other financial assets | 73,576 | 67,348 |
FINANCIAL LIABILITIES: | ||
Deposits | 6,835,572 | 7,241,476 |
Securities sold under agreements to repurchase | 45,319 | 53,398 |
Federal funds purchased | 145,000 | |
Federal Home Loan Bank borrowings | 491,254 | 350,829 |
Junior subordinated debentures | 106,363 | 106,363 |
Other financial liabilities | 2,154 | 1,957 |
Fair Value | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 61,714 | 292,479 |
Investment securities held-to-maturity | 46,096 | 47,949 |
Loans held for sale | 7,724 | 7,475 |
Loans, net | 6,752,894 | 6,883,360 |
Other financial assets | 73,576 | 67,348 |
FINANCIAL LIABILITIES: | ||
Deposits | 6,838,860 | 7,241,739 |
Securities sold under agreements to repurchase | 45,319 | 53,398 |
Federal funds purchased | 145,000 | |
Federal Home Loan Bank borrowings | 493,532 | 351,233 |
Junior subordinated debentures | 96,363 | 96,363 |
Other financial liabilities | 2,154 | 1,957 |
Fair Value | Quoted prices in active markets for identical assets (Level 1) | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 61,714 | 292,479 |
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 | Significant other observable inputs (Level 2) | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities held-to-maturity | 46,096 | 47,949 |
Loans held for sale | 7,724 | 7,475 |
Loans, net | 0 | 0 |
Other financial assets | 73,576 | 67,348 |
FINANCIAL LIABILITIES: | ||
Deposits | 6,838,860 | 7,241,739 |
Securities sold under agreements to repurchase | 45,319 | 53,398 |
Federal funds purchased | 145,000 | |
Federal Home Loan Bank borrowings | 493,532 | 351,233 |
Junior subordinated debentures | 0 | 0 |
Other financial liabilities | 2,154 | 1,957 |
Fair Value | Significant unobservable inputs (Level 3) | ||
FINANCIAL ASSETS: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities held-to-maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 6,752,894 | 6,883,360 |
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 |
Loan Portfolio and Credit Qua_3
Loan Portfolio and Credit Quality Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | $ 7,043,338 | $ 6,976,704 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 670,744 | 694,034 |
Commercial tax-exempt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 445,319 | 447,927 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 2,626,299 | 2,551,274 |
Construction and land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 238,293 | 225,983 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 2,841,926 | 2,839,155 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 89,350 | 83,657 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | $ 131,407 | $ 134,674 |
Loan Portfolio and Credit Qua_4
Loan Portfolio and Credit Quality Nonaccrual Loans by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | $ 24,314 | $ 16,103 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | 1,371 | 582 |
Commercial tax-exempt | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | 5,392 | 0 |
Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | 16,074 | 13,993 |
Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | 1,476 | 1,525 |
Consumer and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual loan receivable | $ 1 | $ 3 |
Loan Portfolio and Credit Qua_5
Loan Portfolio and Credit Quality Narrative (Details) $ in Millions | Mar. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged in blanket lien agreement | $ 2,300 | $ 2,500 |
Loans pledged as collateral | 386.2 | 395.3 |
TDRs | 14.9 | 12.6 |
Deferred income | 7.7 | 8.1 |
Performing Financial Instruments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDRs | $ 7.1 | $ 7.1 |
Residential | 90 Days or Greater Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | loan | 0 | 0 |
Loan Portfolio and Credit Qua_6
Loan Portfolio and Credit Quality Loans by Past Due Status (Details) $ in Thousands | Mar. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan |
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | $ 14,852 | $ 25,945 |
Nonaccrual Loans | 24,314 | 16,103 |
Current Accruing Loans | 7,004,172 | 6,934,656 |
Total Loans Receivable | 7,043,338 | 6,976,704 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 14,441 | 22,758 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 411 | 3,187 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 14,978 | 9,814 |
30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 2,056 | 1,148 |
90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 7,280 | 5,141 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 1,493 | 828 |
Nonaccrual Loans | 1,371 | 582 |
Current Accruing Loans | 667,880 | 692,624 |
Total Loans Receivable | 670,744 | 694,034 |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 1,401 | 828 |
Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 92 | 0 |
Commercial and industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 381 | 0 |
Commercial and industrial | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 241 |
Commercial and industrial | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 990 | 341 |
Commercial tax-exempt | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Nonaccrual Loans | 0 | 0 |
Current Accruing Loans | 445,319 | 447,927 |
Total Loans Receivable | 445,319 | 447,927 |
Commercial tax-exempt | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Commercial tax-exempt | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Commercial tax-exempt | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Commercial tax-exempt | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Commercial tax-exempt | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 1,420 |
Nonaccrual Loans | 5,392 | 0 |
Current Accruing Loans | 2,620,907 | 2,549,854 |
Total Loans Receivable | 2,626,299 | 2,551,274 |
Commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 1,420 |
Commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 5,392 | 0 |
Commercial real estate | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Commercial real estate | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Nonaccrual Loans | 0 | 0 |
Current Accruing Loans | 238,293 | 225,983 |
Total Loans Receivable | 238,293 | 225,983 |
Construction and land | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Construction and land | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 0 |
Construction and land | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Construction and land | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Construction and land | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 12,967 | 20,171 |
Nonaccrual Loans | 16,074 | 13,993 |
Current Accruing Loans | 2,812,885 | 2,804,991 |
Total Loans Receivable | 2,841,926 | 2,839,155 |
Residential | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 12,967 | 19,133 |
Residential | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 1,038 |
Residential | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 9,024 | 9,593 |
Residential | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 2,056 | 759 |
Residential | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 4,994 | $ 3,641 |
Number of loans | loan | 0 | 0 |
Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | $ 319 | $ 369 |
Nonaccrual Loans | 1,476 | 1,525 |
Current Accruing Loans | 87,555 | 81,763 |
Total Loans Receivable | 89,350 | 83,657 |
Home equity | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 369 |
Home equity | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 319 | 0 |
Home equity | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 180 | 220 |
Home equity | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 148 |
Home equity | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 1,296 | 1,157 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 73 | 3,157 |
Nonaccrual Loans | 1 | 3 |
Current Accruing Loans | 131,333 | 131,514 |
Total Loans Receivable | 131,407 | 134,674 |
Consumer and other | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 73 | 1,008 |
Consumer and other | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Past Due | 0 | 2,149 |
Consumer and other | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 1 | 1 |
Consumer and other | 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | 0 | 0 |
Consumer and other | 90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual Loans | $ 0 | $ 2 |
Loan Portfolio and Credit Qua_7
Loan Portfolio and Credit Quality Loans by Grade or Nonaccrual Status (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 241,050 | |
2019 | 1,405,232 | |
2018 | 1,124,350 | |
2017 | 1,065,025 | |
2016 | 1,112,476 | |
2015 & Prior | 2,095,205 | |
Total Loans Receivable | 7,043,338 | $ 6,976,704 |
Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 5,826 | |
2018 | 1,089 | |
2017 | 2,742 | |
2016 | 874 | |
2015 & Prior | 13,783 | |
Total Loans Receivable | 24,314 | |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 241,000 | |
2019 | 1,349,414 | |
2018 | 1,104,102 | |
2017 | 1,022,649 | |
2016 | 1,080,606 | |
2015 & Prior | 2,040,682 | |
Total Loans Receivable | 6,838,453 | |
Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 6,838,453 | 6,850,653 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 23,343 | |
2018 | 15,557 | |
2017 | 19,460 | |
2016 | 19,557 | |
2015 & Prior | 14,706 | |
Total Loans Receivable | 92,623 | |
Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 92,623 | 52,026 |
Accruing Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 50 | |
2019 | 26,649 | |
2018 | 3,602 | |
2017 | 20,174 | |
2016 | 11,439 | |
2015 & Prior | 26,034 | |
Total Loans Receivable | 87,948 | |
Accruing Classified | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 24,314 | 16,103 |
Accruing Classified | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 87,948 | 57,922 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 27,037 | |
2019 | 175,877 | |
2018 | 152,717 | |
2017 | 70,767 | |
2016 | 43,312 | |
2015 & Prior | 201,034 | |
Total Loans Receivable | 670,744 | 694,034 |
Commercial and industrial | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 171 | |
2018 | 0 | |
2017 | 210 | |
2016 | 735 | |
2015 & Prior | 255 | |
Total Loans Receivable | 1,371 | |
Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 26,987 | |
2019 | 149,993 | |
2018 | 147,350 | |
2017 | 51,752 | |
2016 | 39,825 | |
2015 & Prior | 193,630 | |
Total Loans Receivable | 609,537 | |
Commercial and industrial | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 609,537 | 656,364 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 488 | |
2018 | 1,765 | |
2017 | 3,836 | |
2016 | 232 | |
2015 & Prior | 3,107 | |
Total Loans Receivable | 9,428 | |
Commercial and industrial | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 9,428 | 12,101 |
Commercial and industrial | Accruing Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 50 | |
2019 | 25,225 | |
2018 | 3,602 | |
2017 | 14,969 | |
2016 | 2,520 | |
2015 & Prior | 4,042 | |
Total Loans Receivable | 50,408 | |
Commercial and industrial | Accruing Classified | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,371 | 582 |
Commercial and industrial | Accruing Classified | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 50,408 | 24,987 |
Commercial tax-exempt | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 13,741 | |
2018 | 41,012 | |
2017 | 28,844 | |
2016 | 108,057 | |
2015 & Prior | 253,665 | |
Total Loans Receivable | 445,319 | 447,927 |
Commercial tax-exempt | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 13,741 | |
2018 | 41,012 | |
2017 | 24,823 | |
2016 | 108,057 | |
2015 & Prior | 246,626 | |
Total Loans Receivable | 434,259 | |
Commercial tax-exempt | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 434,259 | 436,721 |
Commercial tax-exempt | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 & Prior | 2,516 | |
Total Loans Receivable | 2,516 | |
Commercial tax-exempt | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 2,516 | 7,154 |
Commercial tax-exempt | Accruing Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 4,021 | |
2016 | 0 | |
2015 & Prior | 4,523 | |
Total Loans Receivable | 8,544 | |
Commercial tax-exempt | Accruing Classified | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial tax-exempt | Accruing Classified | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 8,544 | 4,052 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 71,236 | |
2019 | 521,625 | |
2018 | 324,001 | |
2017 | 365,669 | |
2016 | 460,893 | |
2015 & Prior | 882,875 | |
Total Loans Receivable | 2,626,299 | 2,551,274 |
Commercial real estate | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 5,392 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 & Prior | 0 | |
Total Loans Receivable | 5,392 | |
Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 71,236 | |
2019 | 491,954 | |
2018 | 310,679 | |
2017 | 349,161 | |
2016 | 432,649 | |
2015 & Prior | 861,627 | |
Total Loans Receivable | 2,517,306 | |
Commercial real estate | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 2,517,306 | 2,495,702 |
Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 22,855 | |
2018 | 13,322 | |
2017 | 15,324 | |
2016 | 19,325 | |
2015 & Prior | 9,083 | |
Total Loans Receivable | 79,909 | |
Commercial real estate | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 79,909 | 32,014 |
Commercial real estate | Accruing Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 1,424 | |
2018 | 0 | |
2017 | 1,184 | |
2016 | 8,919 | |
2015 & Prior | 12,165 | |
Total Loans Receivable | 23,692 | |
Commercial real estate | Accruing Classified | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 5,392 | 0 |
Commercial real estate | Accruing Classified | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 23,692 | 23,558 |
Construction and land | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 3,731 | |
2019 | 52,620 | |
2018 | 85,162 | |
2017 | 53,428 | |
2016 | 16,820 | |
2015 & Prior | 26,532 | |
Total Loans Receivable | 238,293 | 225,983 |
Construction and land | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 3,731 | |
2019 | 52,620 | |
2018 | 84,692 | |
2017 | 53,428 | |
2016 | 16,820 | |
2015 & Prior | 26,532 | |
Total Loans Receivable | 237,823 | |
Construction and land | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 237,823 | 225,526 |
Construction and land | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 470 | |
2017 | 0 | |
2016 | 0 | |
2015 & Prior | 0 | |
Total Loans Receivable | 470 | |
Construction and land | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 470 | 457 |
Construction and land | Accruing Classified | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Construction and land | Accruing Classified | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 131,395 | |
2019 | 612,363 | |
2018 | 481,618 | |
2017 | 507,204 | |
2016 | 471,195 | |
2015 & Prior | 638,151 | |
Total Loans Receivable | 2,841,926 | 2,839,155 |
Residential | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 263 | |
2018 | 1,089 | |
2017 | 2,532 | |
2016 | 0 | |
2015 & Prior | 12,190 | |
Total Loans Receivable | 16,074 | |
Residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 131,395 | |
2019 | 612,100 | |
2018 | 480,529 | |
2017 | 504,672 | |
2016 | 471,195 | |
2015 & Prior | 621,720 | |
Total Loans Receivable | 2,821,611 | |
Residential | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 2,821,611 | 2,820,909 |
Residential | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Residential | Accruing Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 & Prior | 4,241 | |
Total Loans Receivable | 4,241 | |
Residential | Accruing Classified | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 16,074 | 13,993 |
Residential | Accruing Classified | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 4,241 | 4,253 |
Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,325 | |
2019 | 13,322 | |
2018 | 15,847 | |
2017 | 7,781 | |
2016 | 6,972 | |
2015 & Prior | 44,103 | |
Total Loans Receivable | 89,350 | 83,657 |
Home equity | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 139 | |
2015 & Prior | 1,337 | |
Total Loans Receivable | 1,476 | |
Home equity | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,325 | |
2019 | 13,322 | |
2018 | 15,847 | |
2017 | 7,781 | |
2016 | 6,833 | |
2015 & Prior | 41,703 | |
Total Loans Receivable | 86,811 | |
Home equity | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 86,811 | 81,060 |
Home equity | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Home equity | Accruing Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 & Prior | 1,063 | |
Total Loans Receivable | 1,063 | |
Home equity | Accruing Classified | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,476 | 1,525 |
Home equity | Accruing Classified | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,063 | 1,072 |
Consumer and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 6,326 | |
2019 | 15,684 | |
2018 | 23,993 | |
2017 | 31,332 | |
2016 | 5,227 | |
2015 & Prior | 48,845 | |
Total Loans Receivable | 131,407 | 134,674 |
Consumer and other | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
2015 & Prior | 1 | |
Total Loans Receivable | 1 | |
Consumer and other | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 300 | |
2016 | 0 | |
2015 & Prior | 0 | |
Total Loans Receivable | 300 | |
Consumer and other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 6,326 | |
2019 | 15,684 | |
2018 | 23,993 | |
2017 | 31,032 | |
2016 | 5,227 | |
2015 & Prior | 48,844 | |
Total Loans Receivable | 131,106 | |
Consumer and other | Pass | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 131,106 | 134,371 |
Consumer and other | Special Mention | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 300 | 300 |
Consumer and other | Accruing Classified | Nonaccrual Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1 | 3 |
Consumer and other | Accruing Classified | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | $ 0 | $ 0 |
Loan Portfolio and Credit Qua_8
Loan Portfolio and Credit Quality Impaired Loans With and Without Related Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Recorded Investment | |||
With no related allowance recorded: | $ 24,574 | $ 15,315 | $ 18,122 |
With an allowance recorded: | 1,075 | 1,899 | 1,065 |
Total: | 25,649 | 17,214 | 19,187 |
Unpaid Principal Balance | |||
With no related allowance recorded: | 25,504 | 17,005 | 19,027 |
With an allowance recorded: | 1,082 | 1,950 | 1,065 |
Total: | 26,586 | 18,955 | 20,092 |
Related Allowance | 259 | 299 | 235 |
Average Recorded Investment | |||
With no related allowance recorded: | 20,207 | 13,922 | 17,012 |
With an allowance recorded: | 1,087 | 3,564 | 2,411 |
Total: | 21,294 | 17,486 | 19,423 |
Interest Income Recognized while Impaired | |||
With no related allowance recorded: | 135 | 408 | 1,201 |
With an allowance recorded: | 6 | 23 | 60 |
Total: | 141 | 431 | 1,261 |
Commercial and industrial | |||
Recorded Investment | |||
With no related allowance recorded: | 555 | 862 | 470 |
With an allowance recorded: | 273 | 1,302 | 254 |
Total: | 828 | 2,164 | 724 |
Unpaid Principal Balance | |||
With no related allowance recorded: | 632 | 1,730 | 553 |
With an allowance recorded: | 280 | 1,353 | 254 |
Total: | 912 | 3,083 | 807 |
Related Allowance | 175 | 231 | 146 |
Average Recorded Investment | |||
With no related allowance recorded: | 667 | 1,021 | 1,062 |
With an allowance recorded: | 281 | 1,542 | 736 |
Total: | 948 | 2,563 | 1,798 |
Interest Income Recognized while Impaired | |||
With no related allowance recorded: | 6 | 15 | 268 |
With an allowance recorded: | 0 | 16 | 33 |
Total: | 6 | 31 | 301 |
Commercial tax-exempt | |||
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | 0 | 0 | 0 |
Unpaid Principal Balance | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | 0 | 0 | 0 |
Interest Income Recognized while Impaired | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | 0 | 0 | 0 |
Commercial real estate | |||
Recorded Investment | |||
With no related allowance recorded: | 6,119 | 0 | 733 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | 6,119 | 0 | 733 |
Unpaid Principal Balance | |||
With no related allowance recorded: | 6,151 | 0 | 733 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | 6,151 | 0 | 733 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded: | 2,403 | 136 | 155 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | 2,403 | 136 | 155 |
Interest Income Recognized while Impaired | |||
With no related allowance recorded: | 9 | 256 | 262 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | 9 | 256 | 262 |
Construction and land | |||
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | 0 | 0 | 0 |
Unpaid Principal Balance | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | 0 | 0 | 0 |
Interest Income Recognized while Impaired | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | 0 | 0 | 0 |
Residential | |||
Recorded Investment | |||
With no related allowance recorded: | 16,352 | 12,306 | 15,362 |
With an allowance recorded: | 532 | 597 | 538 |
Total: | 16,884 | 12,903 | 15,900 |
Unpaid Principal Balance | |||
With no related allowance recorded: | 16,612 | 12,566 | 15,622 |
With an allowance recorded: | 532 | 597 | 538 |
Total: | 17,144 | 13,163 | 16,160 |
Related Allowance | 64 | 68 | 67 |
Average Recorded Investment | |||
With no related allowance recorded: | 15,587 | 11,056 | 13,700 |
With an allowance recorded: | 535 | 732 | 1,130 |
Total: | 16,122 | 11,788 | 14,830 |
Interest Income Recognized while Impaired | |||
With no related allowance recorded: | 117 | 137 | 636 |
With an allowance recorded: | 4 | 7 | 23 |
Total: | 121 | 144 | 659 |
Home equity | |||
Recorded Investment | |||
With no related allowance recorded: | 1,548 | 2,147 | 1,557 |
With an allowance recorded: | 270 | 0 | 273 |
Total: | 1,818 | 2,147 | 1,830 |
Unpaid Principal Balance | |||
With no related allowance recorded: | 2,109 | 2,709 | 2,119 |
With an allowance recorded: | 270 | 0 | 273 |
Total: | 2,379 | 2,709 | 2,392 |
Related Allowance | 20 | 0 | 22 |
Average Recorded Investment | |||
With no related allowance recorded: | 1,550 | 1,709 | 2,095 |
With an allowance recorded: | 271 | 1,290 | 545 |
Total: | 1,821 | 2,999 | 2,640 |
Interest Income Recognized while Impaired | |||
With no related allowance recorded: | 3 | 0 | 35 |
With an allowance recorded: | 2 | 0 | 4 |
Total: | 5 | 0 | 39 |
Consumer and other | |||
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | 0 | 0 | 0 |
Unpaid Principal Balance | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | 0 | 0 | 0 |
Interest Income Recognized while Impaired | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Total: | $ 0 | $ 0 | $ 0 |
Loan Portfolio and Credit Qua_9
Loan Portfolio and Credit Quality Loans Restructured (Details) $ in Thousands | 3 Months Ended | 4 Months Ended | |||
Mar. 31, 2020USD ($)loan | Mar. 31, 2019USD ($)loan | May 08, 2020USD ($) | May 08, 2020loan | May 08, 2020security | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Restructuring current quarter, number of loans processed | loan | 2 | 2 | |||
Restructuring current quarter, pre-modification recorded investment | $ 2,423 | $ 3,179 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 2,423 | $ 3,179 | |||
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 and industrial | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Restructuring current quarter, number of loans processed | loan | 1 | 1 | |||
Restructuring current quarter, pre-modification recorded investment | $ 50 | $ 179 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 50 | $ 179 | |||
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 | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Restructuring current quarter, number of loans processed | loan | 0 | 0 | |||
Restructuring current quarter, pre-modification recorded investment | $ 0 | $ 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 | |||
TDRs that defaulted that were restructured in prior twelve months, Number of Loans | loan | 0 | 0 | |||
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 | |||
Commercial real estate | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Restructuring current quarter, number of loans processed | loan | 0 | 0 | |||
Restructuring current quarter, pre-modification recorded investment | $ 0 | $ 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 | |||
TDRs that defaulted that were restructured in prior twelve months, Number of Loans | loan | 0 | 0 | |||
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 | |||
Construction and land | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Restructuring current quarter, number of loans processed | loan | 0 | 0 | |||
Restructuring current quarter, pre-modification recorded investment | $ 0 | $ 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 | |||
TDRs that defaulted that were restructured in prior twelve months, Number of Loans | loan | 0 | 0 | |||
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 | |||
Residential | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Restructuring current quarter, number of loans processed | loan | 1 | 1 | |||
Restructuring current quarter, pre-modification recorded investment | $ 2,373 | $ 3,000 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 2,373 | $ 3,000 | |||
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 | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Restructuring current quarter, number of loans processed | loan | 0 | 0 | |||
Restructuring current quarter, pre-modification recorded investment | $ 0 | $ 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 | |||
TDRs that defaulted that were restructured in prior twelve months, Number of Loans | loan | 0 | 0 | |||
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 | |||
Consumer and other | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Restructuring current quarter, number of loans processed | loan | 0 | 0 | |||
Restructuring current quarter, pre-modification recorded investment | $ 0 | $ 0 | |||
Restructuring Current Quarter, Post-modification recorded investment | $ 0 | $ 0 | |||
TDRs that defaulted that were restructured in prior twelve months, Number of Loans | loan | 0 | 0 | |||
TDRs that defaulted that were restructured in prior twelve months, Post-modification recorded investment | $ 0 | $ 0 | |||
COVID-19 Pandemic Loan Modification Program | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Mortgage Deferment Program, number of loans | loan | 10 | ||||
Mortgage Deferment Program, loans deferred | $ 5,000 | ||||
Restructuring current quarter, number of loans processed | loan | 10 | ||||
Restructuring current quarter, pre-modification recorded investment | $ 5,000 | ||||
COVID-19 Pandemic Loan Modification Program | Subsequent Event | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Mortgage Deferment Program, number of loans | 170 | 170 | |||
Mortgage Deferment Program, loans deferred | $ 90,000 |
Loan Portfolio and Credit Qu_10
Loan Portfolio and Credit Quality Loan Participation Amounts (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Impaired [Line Items] | ||
Total loan participations serviced for others | $ 229,964 | $ 230,014 |
Total loans serviced for others | 145,299 | 204,696 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Total loan participations serviced for others | 14,706 | 14,533 |
Commercial tax-exempt | ||
Financing Receivable, Impaired [Line Items] | ||
Total loan participations serviced for others | 17,959 | 18,101 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Total loan participations serviced for others | 117,782 | 121,929 |
Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Total loan participations serviced for others | 79,517 | 75,451 |
Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans serviced for others | $ 145,299 | $ 204,696 |
Allowance for Loan Losses Narra
Allowance for Loan Losses Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||||
Reasonable and supportable period for estimating expected credit losses | 2 years | |||
Straight line reversion period for estimating expected credit losses | 12 months | |||
Allowance for loans losses | $ 68,211 | $ 71,982 | $ 73,814 | $ 75,312 |
Allowance for Loan Losses Allow
Allowance for Loan Losses Allowance Rollforward (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | $ 71,982 | $ 71,982 | $ 75,312 | |
Provision/(credit) for loan losses | 16,962 | (1,426) | ||
Reserve for unfunded loan commitments | 4,300 | |||
Unfunded loan commitments | 3,200 | |||
Loans charged off: | (528) | (564) | ||
Recoveries on loans previously charged off: | 180 | 492 | ||
Allowance for loan losses, end of period: | 68,211 | 73,814 | ||
Increase (decrease) in allowance for loan and lease losses | (3,800) | |||
Provision/(credit) for loan losses | 16,962 | (1,426) | ||
Impact due to change in accounting principles | [1] | 13,492 | ||
ASU 2016-13 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Release in allowance for credit losses on adoption of ASU 2016-13 | (20,385) | |||
Release in allowance for credit losses on adoption of ASU 2016-13 | (20,385) | |||
Increase to reserve for unfunded loan commitments | 1,400 | |||
Impact due to change in accounting principles | 13,500 | |||
Other Expense | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Unfunded loan commitments | 1,800 | |||
Commercial and industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 10,048 | 10,048 | 15,912 | |
Provision/(credit) for loan losses | 1,245 | (413) | ||
Loans charged off: | (518) | 0 | ||
Recoveries on loans previously charged off: | 45 | 188 | ||
Allowance for loan losses, end of period: | 10,255 | 15,687 | ||
Provision/(credit) for loan losses | 1,245 | (413) | ||
Commercial and industrial | ASU 2016-13 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Release in allowance for credit losses on adoption of ASU 2016-13 | (565) | |||
Release in allowance for credit losses on adoption of ASU 2016-13 | (565) | |||
Commercial tax-exempt | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 6,016 | 6,016 | ||
Provision/(credit) for loan losses | 320 | |||
Allowance for loan losses, end of period: | 1,927 | |||
Provision/(credit) for loan losses | 320 | |||
Commercial tax-exempt | ASU 2016-13 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Release in allowance for credit losses on adoption of ASU 2016-13 | (4,409) | |||
Release in allowance for credit losses on adoption of ASU 2016-13 | (4,409) | |||
Commercial real estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 40,765 | 40,765 | 41,934 | |
Provision/(credit) for loan losses | 10,270 | (310) | ||
Loans charged off: | 0 | 0 | ||
Recoveries on loans previously charged off: | 0 | 189 | ||
Allowance for loan losses, end of period: | 36,580 | 41,813 | ||
Provision/(credit) for loan losses | 10,270 | (310) | ||
Commercial real estate | ASU 2016-13 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Release in allowance for credit losses on adoption of ASU 2016-13 | (14,455) | |||
Release in allowance for credit losses on adoption of ASU 2016-13 | (14,455) | |||
Construction and land | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 5,119 | 5,119 | 6,022 | |
Provision/(credit) for loan losses | 2,748 | (669) | ||
Loans charged off: | 0 | 0 | ||
Recoveries on loans previously charged off: | 0 | 0 | ||
Allowance for loan losses, end of period: | 5,709 | 5,353 | ||
Provision/(credit) for loan losses | 2,748 | (669) | ||
Construction and land | ASU 2016-13 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Release in allowance for credit losses on adoption of ASU 2016-13 | (2,158) | |||
Release in allowance for credit losses on adoption of ASU 2016-13 | (2,158) | |||
Residential | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 8,857 | 8,857 | 10,026 | |
Provision/(credit) for loan losses | 2,237 | (69) | ||
Loans charged off: | 0 | 0 | ||
Recoveries on loans previously charged off: | 0 | 100 | ||
Allowance for loan losses, end of period: | 11,779 | 10,057 | ||
Provision/(credit) for loan losses | 2,237 | (69) | ||
Residential | ASU 2016-13 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Release in allowance for credit losses on adoption of ASU 2016-13 | 685 | |||
Release in allowance for credit losses on adoption of ASU 2016-13 | 685 | |||
Home equity | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 778 | 778 | 1,284 | |
Provision/(credit) for loan losses | (72) | 74 | ||
Loans charged off: | 0 | (562) | ||
Recoveries on loans previously charged off: | 132 | 0 | ||
Allowance for loan losses, end of period: | 303 | 796 | ||
Provision/(credit) for loan losses | (72) | 74 | ||
Home equity | ASU 2016-13 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Release in allowance for credit losses on adoption of ASU 2016-13 | (535) | |||
Release in allowance for credit losses on adoption of ASU 2016-13 | (535) | |||
Consumer and other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of period: | 399 | 399 | 134 | |
Provision/(credit) for loan losses | 214 | (39) | ||
Loans charged off: | (10) | (2) | ||
Recoveries on loans previously charged off: | 3 | 15 | ||
Allowance for loan losses, end of period: | 1,658 | 108 | ||
Provision/(credit) for loan losses | $ 214 | $ (39) | ||
Consumer and other | ASU 2016-13 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Release in allowance for credit losses on adoption of ASU 2016-13 | 1,052 | |||
Release in allowance for credit losses on adoption of ASU 2016-13 | $ 1,052 | |||
[1] | Impact due to the adoption of ASU 2016-13, Financial Instruments (Topic 326) (“ASU 2016-13”). See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 15: Recent Accounting Pronouncements.” |
Allowance for Loan Losses All_2
Allowance for Loan Losses Allowance by Impairment Analysis Method (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually Evaluated for Impairment Recorded investment (loan balance) | $ 25,649,000 | $ 19,187,000 | ||
Individually Evaluated for Impairment Allowance for loan losses | 259,000 | 235,000 | ||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 7,017,689,000 | 6,957,517,000 | ||
Collectively Evaluated for Impairment Allowance for loan losses | 67,952,000 | 71,747,000 | ||
Total Loans Receivable | 7,043,338,000 | 6,976,704,000 | ||
Allowance for loan losses | 68,211,000 | 71,982,000 | $ 73,814,000 | $ 75,312,000 |
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 828,000 | |||
Individually Evaluated for Impairment Allowance for loan losses | 175,000 | |||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 669,916,000 | |||
Collectively Evaluated for Impairment Allowance for loan losses | 10,080,000 | |||
Total Loans Receivable | 670,744,000 | |||
Allowance for loan losses | 10,255,000 | 10,048,000 | 15,687,000 | 15,912,000 |
Commercial and industrial, including tax exempt | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 724,000 | |||
Individually Evaluated for Impairment Allowance for loan losses | 146,000 | |||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 1,141,237,000 | |||
Collectively Evaluated for Impairment Allowance for loan losses | 15,918,000 | |||
Total Loans Receivable | 1,141,961,000 | |||
Allowance for loan losses | 16,064,000 | |||
Commercial tax-exempt | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 0 | |||
Individually Evaluated for Impairment Allowance for loan losses | 0 | |||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 445,319,000 | |||
Collectively Evaluated for Impairment Allowance for loan losses | 1,927,000 | |||
Total Loans Receivable | 445,319,000 | |||
Allowance for loan losses | 1,927,000 | 6,016,000 | ||
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 6,119,000 | 733,000 | ||
Individually Evaluated for Impairment Allowance for loan losses | 0 | 0 | ||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 2,620,180,000 | 2,550,541,000 | ||
Collectively Evaluated for Impairment Allowance for loan losses | 36,580,000 | 40,765,000 | ||
Total Loans Receivable | 2,626,299,000 | 2,551,274,000 | ||
Allowance for loan losses | 36,580,000 | 40,765,000 | 41,813,000 | 41,934,000 |
Construction and land | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 0 | 0 | ||
Individually Evaluated for Impairment Allowance for loan losses | 0 | 0 | ||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 238,293,000 | 225,983,000 | ||
Collectively Evaluated for Impairment Allowance for loan losses | 5,709,000 | 5,119,000 | ||
Total Loans Receivable | 238,293,000 | 225,983,000 | ||
Allowance for loan losses | 5,709,000 | 5,119,000 | 5,353,000 | 6,022,000 |
Residential | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 16,884,000 | 15,900,000 | ||
Individually Evaluated for Impairment Allowance for loan losses | 64,000 | 67,000 | ||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 2,825,042,000 | 2,823,255,000 | ||
Collectively Evaluated for Impairment Allowance for loan losses | 11,715,000 | 8,790,000 | ||
Total Loans Receivable | 2,841,926,000 | 2,839,155,000 | ||
Allowance for loan losses | 11,779,000 | 8,857,000 | 10,057,000 | 10,026,000 |
Home equity | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 1,818,000 | 1,830,000 | ||
Individually Evaluated for Impairment Allowance for loan losses | 20,000 | 22,000 | ||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 87,532,000 | 81,827,000 | ||
Collectively Evaluated for Impairment Allowance for loan losses | 283,000 | 756,000 | ||
Total Loans Receivable | 89,350,000 | 83,657,000 | ||
Allowance for loan losses | 303,000 | 778,000 | 796,000 | 1,284,000 |
Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually Evaluated for Impairment Recorded investment (loan balance) | 0 | 0 | ||
Individually Evaluated for Impairment Allowance for loan losses | 0 | 0 | ||
Collectively Evaluated for Impairment Recorded investment (loan balance) | 131,407,000 | 134,674,000 | ||
Collectively Evaluated for Impairment Allowance for loan losses | 1,658,000 | 399,000 | ||
Total Loans Receivable | 131,407,000 | 134,674,000 | ||
Allowance for loan losses | 1,658,000 | 399,000 | $ 108,000 | $ 134,000 |
Financial Asset Acquired with Credit Deterioration | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total Loans Receivable | $ 0 | $ 0 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities Derivatives Fair Value and Balance Sheet Classification (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 93,437 | $ 36,099 |
Other assets | Derivatives not designated as hedging instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 93,391 | 36,089 |
Other assets | Derivatives not designated as hedging instruments: | Risk participation agreements | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 46 | 10 |
Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 94,917 | 36,822 |
Other liabilities | Derivatives not designated as hedging instruments: | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 94,437 | 36,580 |
Other liabilities | Derivatives not designated as hedging instruments: | Risk participation agreements | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ 480 | $ 242 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities Effect of Derivative Instruments on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in OCI on derivatives | $ 0 | $ (38) |
Amount of gain or (loss) reclassified from accumulated OCI into income | 0 | (311) |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in OCI on derivatives | 0 | (38) |
Interest expense | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) reclassified from accumulated OCI into income | $ 0 | $ (311) |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities Effect of Derivative Instruments on Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest rate swaps | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in income on cash flow hedging relationships | $ 0 | $ (311) |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities Collateral With Counterparties (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Pledged securities value | $ 96.8 | $ 40 |
Not Designated as Hedging Instrument | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative collateral | $ 94.7 | $ 35.7 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities Non-Designated Hedges (Details) - Not Designated as Hedging Instrument | Mar. 31, 2020USD ($)derivativeContract | Dec. 31, 2019USD ($)derivativeContract |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 1,700,000,000 | $ 1,600,000,000 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional amount | 0 | 0 |
Risk participation agreements | ||
Derivative [Line Items] | ||
Notional amount | $ 58,400,000 | $ 58,800,000 |
Number of contracts | derivativeContract | 7 | 7 |
Other Contract | ||
Derivative [Line Items] | ||
Notional amount | $ 30,400,000 | $ 20,500,000 |
Number of contracts | derivativeContract | 5 | 4 |
Derivatives and Hedging Activ_8
Derivatives and Hedging Activities Derivatives not designated as hedges, effect on statement of operations (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total | $ (757) | $ (87) |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total | (555) | (191) |
Risk participation agreements | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total | $ (202) | $ 104 |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income from continuing operations: | ||
Income before income taxes | $ 908 | $ 24,459 |
Income tax expense | 102 | 4,917 |
Net income before attribution to noncontrolling interests | $ 806 | $ 19,542 |
Effective tax rate | 11.20% | 20.10% |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 11.20% | 20.10% |
Income tax expense | $ 102 | $ 4,917 |
Noncontrolling Interests Narrat
Noncontrolling Interests Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |||
Net income attributable to noncontrolling interests | $ 6,000 | $ 100,000 | |
Redeemable noncontrolling interests | 0 | $ 1,383,000 | |
Noncontrolling interest included in permanent shareholders' equity | $ 0 | $ 0 |
Noncontrolling Interests Redeem
Noncontrolling Interests Redeemable Noncontrolling Interests Rollforward (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Redeemable noncontrolling interests at beginning of period | $ 1,383,000 | |
Net income attributable to noncontrolling interests | 6,000 | $ 100,000 |
Redeemable noncontrolling interests at end of period | 0 | |
Redeemable noncontrolling interests | ||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Redeemable noncontrolling interests at beginning of period | 1,383,000 | 2,526,000 |
Net income attributable to noncontrolling interests | 6,000 | 100,000 |
Distributions | (6,000) | (100,000) |
Purchases/(sales) of ownership interests | (64,000) | 12,000 |
Amortization of equity compensation | 8,000 | 17,000 |
Adjustments to fair value | (1,327,000) | (1,893,000) |
Redeemable noncontrolling interests at end of period | $ 0 | $ 662,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income Summary of Amounts Reclassified (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Interest (expense) | $ 15,825 | $ 18,486 |
Income tax (expense)/benefit | 102 | 4,917 |
Net income/(loss) attributable to the Company | (800) | (19,442) |
Hedges related to deposits: | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total reclassifications for the period, net of tax | 220 | |
Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total reclassifications for the period, net of tax | 0 | (220) |
Reclassification out of Accumulated Other Comprehensive Income | Hedges related to deposits: | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Interest (expense) | 0 | (311) |
Income tax (expense)/benefit | 0 | (91) |
Net income/(loss) attributable to the Company | $ 0 | $ (220) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income Reclassification out of AOCI to RE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 819,018 | $ 753,954 |
Ending Balance | 828,792 | 778,819 |
Unrealized gain/(loss) on securities available-for-sale | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 8,435 | (17,556) |
Other comprehensive income/(loss) before reclassifications | 14,489 | 11,568 |
Reclassified from other comprehensive income/(loss) | 0 | |
Other comprehensive income/(loss), net | 14,489 | 11,568 |
Ending Balance | 22,924 | (5,988) |
Unrealized gain/(loss) on cash flow hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 0 | 391 |
Other comprehensive income/(loss) before reclassifications | 0 | (27) |
Reclassified from other comprehensive income/(loss) | (220) | |
Other comprehensive income/(loss), net | 0 | (247) |
Ending Balance | 0 | 144 |
Unrealized gain/(loss) on other | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (860) | (554) |
Other comprehensive income/(loss) before reclassifications | 0 | 0 |
Reclassified from other comprehensive income/(loss) | 0 | |
Other comprehensive income/(loss), net | 0 | 0 |
Ending Balance | (860) | (554) |
Accumulated other comprehensive income/(loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 7,575 | (17,719) |
Other comprehensive income/(loss) before reclassifications | 14,489 | 11,541 |
Reclassified from other comprehensive income/(loss) | (220) | |
Other comprehensive income/(loss), net | 14,489 | 11,321 |
Ending Balance | $ 22,064 | $ (6,398) |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0 | $ 1,646 |
Restructuring Reserve [Roll Forward] | ||
Accrued Charges at beginning of period | 1,315 | 4,685 |
Cost incurred | 1,646 | |
Costs paid | (434) | (1,986) |
Accrued Charges at end of period | 881 | 4,345 |
Severance Charges | ||
Restructuring Reserve [Roll Forward] | ||
Accrued Charges at beginning of period | 526 | 3,896 |
Cost incurred | 1,646 | |
Costs paid | (434) | (1,986) |
Accrued Charges at end of period | 92 | 3,556 |
Other Associated Costs | ||
Restructuring Reserve [Roll Forward] | ||
Accrued Charges at beginning of period | 789 | 789 |
Cost incurred | 0 | |
Costs paid | 0 | 0 |
Accrued Charges at end of period | $ 789 | $ 789 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fees and other income: | ||
Non-interest income within the scope of other GAAP topics | $ 473 | $ 2,856 |
Total non-interest income | 21,521 | 25,248 |
Fees and Other Income | ||
Fees and other income: | ||
Revenue from contracts with customers | 21,048 | 22,392 |
Wealth management and trust fees | ||
Fees and other income: | ||
Revenue from contracts with customers | 18,371 | 19,058 |
Investment management fees | ||
Fees and other income: | ||
Revenue from contracts with customers | 1,925 | 2,650 |
Other Income | ||
Fees and other income: | ||
Revenue from contracts with customers | 752 | 684 |
Other liabilities | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Deferred revenue | $ 6,400 | $ 6,700 |
Lease Accounting Narrative (Det
Lease Accounting Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)lease | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease liabilities | $ 113,574 | $ 117,214 | |
ROU assets | $ 98,896 | $ 102,075 | |
Building | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number real estate leases for office locations | lease | 42 | ||
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease liabilities | $ 124,100 | ||
ROU assets | $ 108,500 | ||
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Term of contract | 5 years | ||
Renewal term | 5 years | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Term of contract | 15 years | ||
Renewal term | 10 years |
Lease Accounting Schedule of Le
Lease Accounting Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 4,601 | $ 4,685 |
Short-term lease cost | 48 | 32 |
Variable lease cost | (9) | 2 |
Less: Sublease income | (28) | (18) |
Total operating lease cost | $ 4,612 | $ 4,701 |
Lease Accounting Other Informat
Lease Accounting Other Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 5,100 |
ROU assets obtained in exchange for new operating lease liabilities | $ 443 |
Weighted-average remaining lease term for operating leases | 7 years 10 months 24 days |
Weighted-average discount rate for operating leases | 3.20% |
Lease Accounting Schedule of Mi
Lease Accounting Schedule of Minimum Lease Payments Due (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Remainder of 2020 | $ 14,962 | |
2021 | 19,974 | |
2022 | 19,934 | |
2023 | 18,984 | |
2024 | 12,961 | |
Thereafter | 44,194 | |
Total future minimum lease payments | 131,009 | |
Less: Amounts representing interest | (17,435) | |
Present value of net future minimum lease payments | $ 113,574 | $ 117,214 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Lease liabilities | $ 113,574 | $ 117,214 | |||
Right-of-use assets | 98,896 | $ 102,075 | |||
Impact due to change in accounting principles | [1] | $ 13,492 | |||
ASU 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Lease liabilities | $ 124,100 | ||||
Right-of-use assets | $ 108,500 | ||||
ASU 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Release in allowance for credit losses on adoption of ASU 2016-13 | $ (20,385) | ||||
Increase to reserve for unfunded loan commitments | 1,400 | ||||
Impact due to change in accounting principles | $ 13,500 | ||||
[1] | Impact due to the adoption of ASU 2016-13, Financial Instruments (Topic 326) (“ASU 2016-13”). See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 15: Recent Accounting Pronouncements.” |
Subsequent Event (Details)
Subsequent Event (Details) $ in Thousands | 3 Months Ended | 4 Months Ended | |||
Mar. 31, 2020USD ($)loan | May 08, 2020USD ($)loan | May 08, 2020USD ($)loan | May 08, 2020USD ($)loansecurity | Dec. 31, 2019USD ($) | |
Subsequent Event [Line Items] | |||||
Amount of loans approved | $ 7,043,338 | $ 6,976,704 | |||
Commercial Loan Service Second Loan Program | |||||
Subsequent Event [Line Items] | |||||
Period of principal and interest payments covered under the program | 1 year | ||||
Maximum loan-to-ratio value to qualify for the program (percent) | 75.00% | ||||
Percentage of Commercial real estate portfolio qualified for the plan | 70.00% | ||||
COVID-19 Pandemic Loan Modification Program | |||||
Subsequent Event [Line Items] | |||||
Mortgage Deferment Program, number of loans | loan | 10 | ||||
Mortgage Deferment Program, loans deferred | $ 5,000 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Commercial Loan Service Second Loan Program, number of loans approved | loan | 260 | 260 | 260 | ||
Subsequent Event | PPP Loans | |||||
Subsequent Event [Line Items] | |||||
Number of loans approved | loan | 1,100 | ||||
Loans approved under the program | $ 425,000 | ||||
Subsequent Event | Commercial Loan Service Second Loan Program | |||||
Subsequent Event [Line Items] | |||||
Amount of loans approved | 1,400,000 | $ 1,400,000 | $ 1,400,000 | ||
New loans expected to be funded under the program | 90,000 | $ 90,000 | $ 90,000 | ||
Subsequent Event | COVID-19 Pandemic Loan Modification Program | |||||
Subsequent Event [Line Items] | |||||
Mortgage Deferment Program, number of loans | 170 | 170 | |||
Mortgage Deferment Program, loans deferred | $ 90,000 |