TRISTATE CAPITAL HOLDINGS, INC., 10-Q filed on 8/1/2016
Quarterly Report
v3.5.0.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2016
Jul. 15, 2016
Document and Entity Information [Abstract]    
Entity Registrant Name TriState Capital Holdings, Inc.  
Entity Central Index Key 0001380846  
Document Type 10-Q  
Document Period End Date Jun. 30, 2016  
Amendment Flag false  
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q2  
Document Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   28,215,282
v3.5.0.2
Unaudited Condensed Consolidated Statements of Financial Condition - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
ASSETS    
Cash $ 57 $ 294
Interest-earning deposits with other institutions 109,201 91,097
Federal funds sold 5,039 5,285
Cash and cash equivalents 114,297 96,676
Investment securities available-for-sale, at fair value (cost: $185,160 and $170,337, respectively) 183,811 168,319
Investment securities held-to-maturity, at cost (fair value: $45,931 and $48,099, respectively) 44,774 47,290
Federal Home Loan Bank stock 13,632 9,802
Total investment securities 242,217 225,411
Loans held-for-investment 2,997,309 2,841,284
Allowance for loan losses (17,215) (17,974)
Loans held-for-investment, net 2,980,094 2,823,310
Accrued interest receivable 7,774 7,056
Investment management fees receivable 7,674 6,191
Goodwill and other intangibles, net 68,134 50,816
Office properties and equipment, net 3,563 3,839
Bank owned life insurance 60,905 60,019
Deferred tax asset, net 11,499 12,186
Prepaid expenses and other assets 32,434 16,667
Total assets 3,528,591 3,302,171
Liabilities:    
Deposits 2,888,192 2,689,844
Borrowings, net 259,409 254,308
Accrued interest payable on deposits and borrowings 1,927 1,762
Other accrued expenses and other liabilities 41,369 30,280
Total liabilities 3,190,897 2,976,194
Shareholders’ Equity:    
Preferred stock, no par value; Shares authorized - 150,000; Shares issued - none 0 0
Common stock, no par value; Shares authorized - 45,000,000; Shares issued - 29,469,004 and 29,056,195, respectively; Shares outstanding - 28,211,282 and 28,056,195, respectively 281,708 281,412
Additional paid-in capital 12,424 10,809
Retained earnings 57,719 45,103
Accumulated other comprehensive income (loss), net (1,076) (1,443)
Treasury stock (1,257,722 and 1,000,000 shares, respectively) (13,081) (9,904)
Total shareholders’ equity 337,694 325,977
Total liabilities and shareholders’ equity $ 3,528,591 $ 3,302,171
v3.5.0.2
Unaudited Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]    
Shares Authorized, Preferred Stock 150,000 150,000
Shares Issued, Preferred Stock 0 0
Shares Authorized, Common Stock 45,000,000 45,000,000
Shares Issued, Common Stock 29,469,004 29,056,195
Shares Outstanding, Common Stock 28,211,282 28,056,195
Treasury Stock 1,257,722 1,000,000
Investments AFS (cost) $ 185,160 $ 170,337
Investments HTM (fair value) $ 45,931 $ 48,099
v3.5.0.2
Unaudited Condensed Consolidated Statements of Income - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Interest income:        
Loans $ 22,343 $ 19,541 $ 44,320 $ 38,641
Investments 1,312 851 2,557 1,850
Interest-earning deposits 140 89 278 192
Total interest income 23,795 20,481 47,155 40,683
Interest expense:        
Deposits 4,603 3,176 8,741 6,068
Borrowings 973 632 1,818 1,279
Total interest expense 5,576 3,808 10,559 7,347
Net interest income 18,219 16,673 36,596 33,336
Provision for loan losses 80 185 202 1,110
Net interest income after provision for loan losses 18,139 16,488 36,394 32,226
Non-interest income:        
Investment management fees 9,462 7,514 16,481 15,169
Service charges 123 176 259 339
Net gain on the sale and call of investment securities 62 0 63 17
Swap fees 1,205 697 2,445 1,014
Commitment and other fees 507 493 1,009 1,000
Other income 88 696 105 888
Total non-interest income 11,447 9,576 20,362 18,427
Non-interest expense:        
Compensation and employee benefits 12,807 11,604 24,740 23,018
Premises and occupancy costs 1,169 1,144 2,298 2,266
Professional fees 989 885 1,790 1,761
FDIC insurance expense 568 545 1,090 1,013
General insurance expense 265 313 510 607
State capital shares tax 328 309 657 582
Travel and entertainment expense 845 636 1,422 1,162
Data processing expense 285 268 577 530
Intangible amortization expense 438 390 828 779
Other operating expenses 1,763 1,488 3,551 2,966
Total non-interest expense 19,457 17,582 37,463 34,684
Income before tax 10,129 8,482 19,293 15,969
Income tax expense 3,356 2,754 6,677 5,185
Net income $ 6,773 $ 5,728 $ 12,616 $ 10,784
Earnings per common share:        
Basic $ 0.25 $ 0.21 $ 0.46 $ 0.39
Diluted $ 0.24 $ 0.20 $ 0.45 $ 0.38
v3.5.0.2
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Statement of Comprehensive Income [Abstract]        
Net income $ 6,773 $ 5,728 $ 12,616 $ 10,784
Other comprehensive income:        
Unrealized holding gains on investment securities net of tax expense of $622, $72, $295 and $243 1,114 130 464 423
Reclassification adjustment for gains included in net income on investment securities, net of tax expense of $22, $0, $22 and $6 (40) 0 (41) (11)
Unrealized holding losses on derivatives net of tax benefit of $(31), $0, $(31) and $0 (56) 0 (56) 0
Other comprehensive income 1,018 130 367 412
Total comprehensive income $ 7,791 $ 5,858 $ 12,983 $ 11,196
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Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Statement of Comprehensive Income [Abstract]        
Unrealized holding gains on investment securities net of tax expense of $622, $72, $295 and $243 $ 622 $ 72 $ 295 $ 243
Reclassification adjustment for gains included in net income on investment securities, net of tax expense of $22, $0, $22 and $6 22 0 22 6
Unrealized holding losses on derivatives net of tax benefit of $(31), $0, $(31) and $0 $ (31) $ 0 $ (31) $ 0
v3.5.0.2
Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in-Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss), net
Treasury Stock
Beginning Balance at Dec. 31, 2014 $ 305,390 $ 280,895 $ 9,253 $ 22,615 $ (627) $ (6,746)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 10,784     10,784    
Other comprehensive income (loss) 412       412  
Exercise of stock options 50 71 (21)      
Purchase of treasury stock (3,158)         (3,158)
Stock-based compensation 920   920      
Ending Balance at Jun. 30, 2015 314,398 280,966 10,152 33,399 (215) (9,904)
Beginning Balance at Dec. 31, 2015 325,977 281,412 10,809 45,103 (1,443) (9,904)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 12,616     12,616    
Other comprehensive income (loss) 367       367  
Exercise of stock options 214 296 (82)      
Purchase of treasury stock (3,177)         (3,177)
Stock-based compensation 1,697   1,697      
Ending Balance at Jun. 30, 2016 $ 337,694 $ 281,708 $ 12,424 $ 57,719 $ (1,076) $ (13,081)
v3.5.0.2
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash Flows from Operating Activities:    
Net income $ 12,616 $ 10,784
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and intangible amortization expense 1,461 1,459
Amortization of deferred financing costs 101 101
Provision for loan losses 202 1,110
Stock-based compensation expense 1,697 920
Net gain on the sale of investment securities available-for-sale (17) (17)
Net gain on the call of investment securities held-to-maturity (46) 0
Net amortization of premiums and discounts 458 358
(Increase) decrease in investment management fees receivable (571) 288
Increase in accrued interest receivable (718) (213)
Increase (decrease) in accrued interest payable 165 (44)
Bank owned life insurance income (886) (810)
Decrease in income taxes payable (353) 0
(Increase) decrease in prepaid income taxes (3,045) 219
Increase (decrease) in accounts payable and other accrued expenses (6,961) 1,668
Payment of contingent consideration impacting operations 0 1,771
Other, net 1,056 (1,649)
Net cash provided by operating activities 5,159 12,403
Cash Flows from Investing Activities:    
Purchase of investment securities available-for-sale (22,354) (27,612)
Purchase of investment securities held-to-maturity 0 (11,963)
Proceeds from the sale of investment securities available-for-sale 3,040 9,734
Principal repayments and maturities of investment securities available-for-sale 4,140 13,105
Principal repayments and maturities of investment securities held-to-maturity 2,500 6,540
Purchase of bank owned life insurance 0 5,000
Net redemption (purchase) of Federal Home Loan Bank stock (3,830) 1,328
Net increase in loans (158,182) (158,535)
Proceeds from loan sales 1,196 184
Additions to office properties and equipment (338) (828)
Acquisition, net of acquired cash 14,095 0
Net cash used in investing activities (187,923) (173,047)
Cash Flows from Financing Activities:    
Net increase in deposit accounts 198,348 213,742
Net increase in Federal Home Loan Bank advances 5,000 0
Net decrease in Federal Home Loan Bank advances 0 (40,000)
Net proceeds from exercise of stock options 214 50
Payment of contingent consideration 0 15,465
Purchase of treasury stock (3,177) (3,158)
Net cash provided by financing activities 200,385 155,169
Net change in cash and cash equivalents during the period 17,621 (5,475)
Cash and cash equivalents at beginning of the period 96,676 105,710
Cash and cash equivalents at end of the period 114,297 100,235
Cash paid during the period for:    
Interest 10,293 7,291
Income taxes 8,841 4,659
Acquisition of non-cash assets and liabilities:    
Assets acquired 1,038 0
Liabilities assumed 1,402 0
Other non-cash activity:    
Loan foreclosures and repossessions 0 396
Unsettled purchase of investment securities available-for-sale 0 2,993
Business Combination, Contingent Consideration, Liability 3,687 0
Transfer of loans held-for-investment to held-for-sale $ 0 $ 4,084
v3.5.0.2
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2016
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NATURE OF OPERATION
TriState Capital Holdings, Inc. (“we”, “us”, “our” or the “Company”) is a registered bank holding company pursuant to the Bank Holding Company Act of 1956, as amended. The Company has three wholly-owned subsidiaries: TriState Capital Bank (the “Bank”), a Pennsylvania-chartered state bank; Chartwell Investment Partners, LLC (“Chartwell”), a registered investment advisor; and Chartwell TSC Securities Corp. (“CTSC Securities”), which is applying to be registered as a broker/dealer with the Securities and Exchange Commission (“SEC”) and Financial Industry Regulatory Authority (“FINRA”).

The Bank was established to serve the commercial banking and private banking needs of middle-market businesses and high-net-worth individuals. Chartwell provides investment management services to institutional, sub-advisory, and separately managed account clients and had assets under management of $10.59 billion as of June 30, 2016. CTSC Securities has a primary business of facilitating distribution and marketing efforts for the proprietary investment products provided by Chartwell, including shares of mutual funds advised and/or administered by Chartwell and private funds advised and/or administered by Chartwell.

Regulatory approval was received and the Bank commenced operations on January 22, 2007. The Company and the Bank are subject to regulatory examination by the Federal Deposit Insurance Corporation (“FDIC”), the Pennsylvania Department of Banking and Securities, and the Federal Reserve. Chartwell is a registered investment advisor regulated by the SEC. Chartwell was established through the acquisition of substantially all the assets of Chartwell Investment Partners, LP that was effective March 5, 2014. CTSC Securities was capitalized in May 2014, and once registered, will be a broker/dealer regulated by the SEC and FINRA.

The Bank conducts business through its main office located in Pittsburgh, Pennsylvania, as well as its four additional representative offices in Cleveland, Ohio; Philadelphia, Pennsylvania; Edison, New Jersey; and New York, New York. Chartwell conducts business through its office located in Berwyn, Pennsylvania and CTSC Securities will conduct business through its office located in Pittsburgh, Pennsylvania.

USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States of America requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of related revenue and expense during the reporting period. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual conditions could be worse than those anticipated in the estimates, which could materially affect the financial results of our operations and financial condition.

The material estimates that are particularly susceptible to significant changes relate to the determination of the allowance for loan losses, valuation of goodwill and other intangible assets and its evaluation for impairment, and deferred income taxes and its related recoverability, which are discussed later in this section.

CONSOLIDATION
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, the Bank, Chartwell and CTSC Securities, after elimination of inter-company accounts and transactions. The accounts of the Bank, in turn, include its wholly-owned subsidiary, Meadowood Asset Management, LLC, after elimination of inter-company accounts and transactions. The unaudited consolidated financial statements of the Company presented herein have been prepared pursuant to rules of the Securities and Exchange Commission for quarterly reports on form 10-Q and do not include all of the information and note disclosures required by GAAP for a full year presentation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures, considered necessary for the fair presentation of the accompanying consolidated financial statements, have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2015, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 16, 2016.

CASH AND CASH EQUIVALENTS
For purposes of reporting cash flows, the Company has defined cash and cash equivalents as cash, interest-earning deposits with other institutions, federal funds sold, and short-term investments that have an original maturity of 90 days or less.

INVESTMENT SECURITIES
The Company’s investments are classified as either: (1) held-to-maturity – debt securities that the Company intends to hold until maturity and are reported at amortized cost; (2) trading securities – debt and certain equity securities bought and held principally for the purpose of selling them in the near term and reported at fair value, with unrealized gains and losses included in earnings; or (3) available-for-sale – debt and certain equity securities not classified as either held-to-maturity or trading securities and reported at fair value, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss).

The cost of securities sold is determined on a specific identification basis. Amortization of premiums and accretion of discounts are recorded as interest income from investments over the life of the security utilizing the level yield method. We evaluate impaired investment securities quarterly to determine if impairments are temporary or other-than-temporary. For impaired debt and equity securities, management first determines whether it intends to sell or if it is more-likely than not that it will be required to sell the impaired securities. This determination considers current and forecasted liquidity requirements, regulatory and capital requirements and securities portfolio management. If the Company intends to sell a security with a fair value below amortized cost or if it is more-likely than not that it will be required to sell such a security before recovery, an other-than-temporary impairment (“OTTI”) charge is recorded through current period earnings for the full decline in fair value below amortized cost. For debt and equity securities that the Company does not intend to sell or it is more likely than not that it will not be required to sell before recovery, an OTTI charge is recorded through current period earnings for the amount of the valuation decline below amortized cost that is attributable to credit losses. The remaining difference between the security’s fair value and amortized cost (that is, the decline in fair value not attributable to credit losses) is recognized in other comprehensive income (loss), in the consolidated statements of comprehensive income and the shareholders’ equity section of the consolidated statements of financial condition, on an after-tax basis.

FEDERAL HOME LOAN BANK STOCK
The Company is a member of the Federal Home Loan Bank of Pittsburgh (“FHLB”). Member institutions are required to invest in FHLB stock. The stock is carried at cost, which approximates its liquidation value, and it is evaluated for impairment based on the ultimate recoverability of the par value. The following matters are considered by management when evaluating the FHLB stock for impairment: the ability of the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; the impact of legislative and regulatory changes on the institution and its customer base; and the Company’s intent and ability to hold its FHLB stock for the foreseeable future. Management believes the Company’s holdings in the FHLB stock are recoverable at par value, as of June 30, 2016 and December 31, 2015. Cash and stock dividends are reported as interest income, in the consolidated statements of income.

LOANS
Loans and leases held-for investment are stated at unpaid principal balances, net of deferred loan fees and costs. Loans held-for-sale are stated at the lower of cost or fair value. Interest income on loans is accrued at the contractual rate on the principal amount outstanding and includes the amortization of deferred loan fees and costs. Deferred loan fees and costs are amortized to interest income over the life of the loan, taking into consideration scheduled payments and prepayments.

The Company considers a loan to be a Troubled Debt Restructuring (“TDR”) when there is a concession made to a financially troubled borrower without adequate consideration provided to the Company. Once a loan is deemed to be a TDR, the Company considers whether the loan should be placed in non-accrual status. In assessing accrual status, the Company considers the likelihood that repayment and performance according to the original contractual terms will be achieved, as well as the borrower’s historical payment performance. A loan is designated and reported as TDR until such loan is either paid-off or sold, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the remaining principal and interest will be collected according to the restructured agreement.

The recognition of interest income on a loan is discontinued when, in management’s opinion, it is probable the borrower is unable to meet payments as they become due or when the loan becomes 90 days past due, whichever occurs first. All accrued and unpaid interest on such loans is reversed. Such interest ultimately collected is applied to reduce principal if there is doubt about the collectability of principal. If a borrower brings a loan current for which accrued interest has been reversed, then the recognition of interest income on the loan is resumed, once the loan has been current for a period of six consecutive months or greater.

The Company is a party to financial instruments with off-balance sheet risk (commitments to extend credit) in the normal course of business to meet the financing needs of its customers. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the commitment. Commitments generally have fixed expiration dates or other termination clauses (i.e. demand loans) and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the unfunded commitment amount does not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis using the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained, if deemed necessary by the Company upon extension of a commitment, is based on management’s credit evaluation of the borrower.

OTHER REAL ESTATE OWNED
Real estate, other than bank premises, is recorded at the lower of the related loan balance or fair value less estimated selling costs at the time of acquisition. Fair value is determined based on an independent appraisal. Expenses related to holding the property are charged against earnings when incurred. Depreciation is not recorded on the other real estate owned (“OREO”) properties.

ALLOWANCE FOR LOAN LOSSES
The allowance for loan losses is established through provisions for loan losses that are charged to operations. Loans are charged against the allowance for loan losses when management believes that the principal is uncollectible. If, at a later time, amounts are recovered with respect to loans previously charged off, the recovered amount is credited to the allowance for loan losses.

The allowance is appropriate, in management’s judgment, to cover probable losses inherent in the loan portfolio as of June 30, 2016 and December 31, 2015. Management’s judgment takes into consideration general economic conditions, diversification and seasoning of the loan portfolio, historic loss experience, identified credit problems, delinquency levels and adequacy of collateral. Although management believes it has used the best information available to it in making such determinations, and that the present allowance for loan losses is adequate, future adjustments to the allowance may be necessary, and net income may be adversely affected if circumstances differ substantially from the assumptions used in determining the level of the allowance. In addition, as an integral part of their periodic examination, certain regulatory agencies review the adequacy of the Bank’s allowance for loan losses and may direct the Bank to make additions to the allowance based on their judgments about information available to them at the time of their examination.

The components of the allowance for loan losses represent estimates based upon Accounting Standards Codification (“ASC”) Topic 450, Contingencies, and ASC Topic 310, Receivables. ASC Topic 450 applies to homogeneous loan pools such as consumer installment, residential mortgages, consumer lines of credit and commercial loans that are not individually evaluated for impairment under ASC Topic 310. ASC Topic 310 is applied to commercial and consumer loans that are individually evaluated for impairment.

Under ASC Topic 310, a loan is impaired, based upon current information and events, in management’s opinion, when it is probable that the loan will not be repaid according to its original contractual terms, including both principal and interest, or if a loan is designated as a TDR. Management performs individual assessments of impaired loans to determine the existence of loss exposure based upon a discounted cash flows method or where a loan is collateral dependent, based upon the fair value of the collateral less estimated selling costs.

In estimating probable loan loss under ASC Topic 450 management considers numerous factors, including historical charge-offs and subsequent recoveries. Management also considers, but is not limited to, qualitative factors that influence our credit quality, such as delinquency and non-performing loan trends, changes in loan underwriting guidelines and credit policies, as well as the results of internal loan reviews. Finally, management considers the impact of changes in current local and regional economic conditions in the markets that we serve. Assessment of relevant economic factors indicates that some of the Company’s primary markets historically tend to lag the national economy, with local economies in our primary market areas also improving or weakening, as the case may be, but at a more measured rate than the national trends.

Management bases the computation of the allowance for loan losses under ASC Topic 450 on two factors: the primary factor and the secondary factor. The primary factor is based on the inherent risk identified by management within each of the Company’s three loan portfolios based on the historical loss experience of each loan portfolio and the loss emergence period. Management has developed a methodology that is applied to each of the three primary loan portfolios, consisting of commercial and industrial, commercial real estate and private banking. As the loan loss history, mix and risk ratings of each loan portfolio change, the primary factor adjusts accordingly. The allowance for loan losses related to the primary factor is based on our estimates as to probable losses for each loan portfolio. The secondary factor is intended to capture risks related to events and circumstances that management believes have an impact on the performance of the loan portfolio. Although this factor is more subjective in nature, the methodology focuses on internal and external trends in pre-specified categories (risk factors) and applies a quantitative percentage that drives the secondary factor. There are nine risk factors and each risk factor is assigned a reserve level based on management’s judgment as to the probable impact of each risk factor on each loan portfolio and is monitored on a quarterly basis. As the trend in any risk factor changes, a corresponding change occurs in the reserve associated with each respective risk factor, such that the secondary factor remains current to changes in each loan portfolio.

The Company also maintains a reserve for losses on unfunded commitments. This reserve is reflected as a component of other liabilities and, in management’s judgment, is sufficient to cover probable losses inherent in the commitments. Management tracks the level and trends in unused commitments and takes into consideration the same factors as those considered for purposes of the allowance for loan losses on outstanding loans.

INVESTMENT MANAGEMENT FEES
The Company recognizes investment management fee revenue when the advisory services are performed. Fees are based on assets under management and are calculated pursuant to individual client contracts. Investment management fees are generally paid on a quarterly basis. In a limited number of cases, the Company may earn a performance fee based on investment performance achieved versus a stated benchmark. Performance fees are included in investment management fee revenue in the consolidated statements of income.

Investment management fees receivable represent amounts due for contractual investment management services provided to the Company’s clients, primarily institutional investors, mutual funds and individual investors. Management performs credit evaluations of its customers’ financial condition when it is deemed to be necessary, and does not require collateral. The Company provides an allowance for uncollectible accounts based on specifically identified receivables. Investment management fees receivable are considered delinquent when payment is not received within contractual terms and are charged off against the allowance for uncollectible accounts when management determines that recovery is unlikely and the Company ceases its collection efforts. There was no bad debt expense recorded for the six months ended June 30, 2016 and 2015, and there was no allowance for uncollectible accounts recorded as of June 30, 2016 and December 31, 2015.

BUSINESS COMBINATIONS
The Company accounts for business combinations using the acquisition method of accounting. Under this method of accounting, the acquired company’s net assets are recorded at fair value as of the date of acquisition, and the results of operations of the acquired company are combined with our results from that date forward. Acquisition costs are expensed when incurred. The difference between the purchase price and the fair value of the net assets acquired (including identified intangibles) is recorded as goodwill. The change in the initial estimate of any contingent earnout amounts is reflected in the consolidated statements of income.

GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Other intangible assets that have finite lives, such as trade name, certain client relationships and non-compete agreements are amortized over their estimated useful lives and subject to periodic impairment testing. These finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from four to twenty-five years. Goodwill and other intangible assets are subject to impairment testing at the reporting unit level, which is conducted at least annually.

OFFICE PROPERTIES AND EQUIPMENT
Office properties and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the related assets, except for leasehold improvements, which are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Estimated useful lives are dependent upon the nature and condition of the asset and range from three to ten years. Repairs and maintenance are charged to expense as incurred, while improvements that extend the useful life are capitalized and depreciated to operating expense over the estimated remaining life of the asset. When the Bank receives an allowance for improvements to be made to one of its leased offices, we record the allowance as a deferred liability and recognize it as a reduction to rent expense over the life of the related lease.

BANK OWNED LIFE INSURANCE
Bank owned life insurance (“BOLI”) policies on certain officers and employees are recorded at net cash surrender value on the consolidated statements of financial condition. Upon termination of the BOLI policy the Company receives the cash surrender value. BOLI benefits are payable to the Company upon death of the insured. Changes in net cash surrender value are recognized as non-interest income in the consolidated statements of income.

DEPOSITS
Deposits are stated at principal outstanding and interest on deposits is accrued and charged to expense daily and is paid or credited in accordance with the terms of the respective accounts.

BORROWINGS
The Company records FHLB advances and subordinated notes payable at their principal amount net of debt issuance costs, per ASU 2015-03. Interest expense is recognized based on the coupon rate of the obligations. Costs associated with the acquisition of subordinated notes payable are amortized to interest expense over the expected term of the borrowing.

EARNINGS PER COMMON SHARE
Basic earnings per common share (“EPS”) is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution of upon the exercise of stock options and vesting of restricted stock awards granted utilizing the treasury stock method.

INCOME TAXES
The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities with regard to a change in tax rates is recognized in income in the period that includes the enactment date. Management assesses all available evidence to determine the amount of deferred tax assets that are more-likely-than-not to be realized. The available evidence used in connection with the assessments includes taxable income in prior periods, projected taxable income, potential tax planning strategies and projected reversals of deferred tax items. These assessments involve a degree of subjectivity and may undergo significant change. Changes to the evidence used in the assessments could have a material adverse effect on the Company’s results of operations in the period in which they occur. It is the Company’s policy to recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense in the consolidated statements of income.

DERIVATIVES AND HEDGING ACTIVITIES
The Company accounts for derivative instruments and hedging activities in accordance with FASB ASC Topic 815, Derivatives and Hedging. All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities, and appropriate documentation is maintained to support the final determination. All derivatives are recognized as either assets or liabilities on the consolidated statements of financial condition and measured at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. For derivatives designated as cash flow hedges, changes in fair value of the effective portion of the cash flow hedges are reported in accumulated other comprehensive income. When the cash flows associated with the hedged item are realized, the gain or loss included in accumulated other comprehensive income is recognized in the consolidated statement of income. The Company also has interest derivative positions that are not designated as hedging instruments. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings.

FAIR VALUE MEASUREMENT
Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in a principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date, using assumptions market participants would use when pricing an asset or liability. An orderly transaction assumes exposure to the market for a customary period for marketing activities prior to the measurement date and not a forced liquidation or distressed sale. Fair value measurement and disclosure guidance provides a three-level hierarchy that prioritizes the inputs of valuation techniques used to measure fair value into three broad categories:

•
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.
•
Level 2 – Observable inputs such as quoted prices for similar assets and liabilities in active markets, quoted prices for similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
•
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs.

Fair value may be recorded for certain assets and liabilities every reporting period on a recurring basis or under certain circumstances, on a non-recurring basis.

STOCK-BASED COMPENSATION
The Company accounts for its stock-based compensation awards based on estimated fair values, for all share-based awards, including stock options and restricted shares, made to employees and directors.

The Company accounts for stock-based employee compensation in accordance with the fair value recognition provisions of ASC Topic 718, Compensation – Stock Compensation. As a result, compensation cost for all share-based payments is based on the grant-date fair value estimated in accordance with ASC Topic 718. The value of the portion of the award that is ultimately expected to vest is included in stock-based employee compensation cost in the consolidated statements of income and recorded as a component of additional paid-in capital, for equity-based awards. Compensation expense for all awards is recognized on a straight-line basis over the requisite service period for the entire grant.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized holding gains (losses) and the non-credit component of losses on the Company’s investment securities available-for-sale are included in accumulated other comprehensive income (loss), net of applicable income taxes. Also included in accumulated other comprehensive income (loss) is the remaining unamortized balance of the unrealized holding gains (non-credit losses), net of applicable income taxes, that existed on the transfer date for investment securities reclassified into the held-to-maturity category from the available-for-sale category.

Unrealized holding gains (losses) on the effective portion of the Company’s derivatives are included in accumulated other comprehensive income (loss), net of applicable income taxes, which will be reclassified to interest expense as interest payments are made on the Company’s debt.

TREASURY STOCK
The repurchase of the Company’s common stock is recorded at cost. At the time of reissuance, the treasury stock account is reduced using the average cost method. Gains and losses on the reissuance of common stock are recorded in additional paid-in capital, to the extent additional paid-in capital from any previous net gains on treasury share transactions exists. Any net deficiency is charged to retained earnings.

RECENT ACCOUNTING DEVELOPMENTS
In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “Measurement of Credit Losses on Financial Instruments,” which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life. The changes are effective for public business entities that are SEC filers, for annual and interim periods in fiscal years beginning after December 15, 2019. All entities may early adopt the standard for annual and interim periods in fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic only); and (7) intrinsic value (nonpublic only). The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. Even if an entity early adopts the amendments after the first interim period, the adoption date is as of the beginning of the year for the issues adopted by the cumulative-effect and prospective methods. Any adjustments to previously reported interim periods of that fiscal year should be included in the year-to-date results. If those previously reported interim results appear in any future filings, they are reported on the revised basis. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In March 2016, the FASB issued ASU 2016-06, “Contingent Put and Call Options in Debt Instruments,” which clarifies that determining whether the economic characteristics of a put or call are clearly and closely related to its debt host requires only an assessment of the four-step decision sequence outlined in FASB ASC paragraph 815-15-25-24. Additionally, entities are not required to separately assess whether the contingency itself is clearly and closely related. ASU 2016-06 is effective for public business entities for interim and annual periods in fiscal years beginning after December 15, 2016. Early adoption is permitted in any interim period for which the entity’s financial statements have not been issued but would be retroactively applied to the beginning of the year that includes that interim period. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In March 2016, the FASB issued ASU 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships,” which clarifies that a change in one of the parties to a derivative contract (through novation) that is part of a hedge accounting relationship does not, by itself, require dedesignation of that relationship, as long as all other hedge accounting criteria continue to be met. This ASU is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which, among other things, requires lessees to recognize most leases on-balance sheet. This will increase their reported assets and liabilities - in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP. ASU 2016-02 supersedes Topic 840, Leases. ASU 2016-02 is effective for public business entities, certain not-for-profit entities, and certain employee benefit plans for annual and interim periods in fiscal years beginning after December 15, 2018. This ASU mandates a modified retrospective transition method for all entities. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which will significantly change the income statement impact of equity investments, and the recognition of changes in fair value of financial liabilities when the fair value option is elected. The ASU is effective for public business entities for interim and annual periods in fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments.” This ASU eliminated the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. The ASU was effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. The adoption of ASU 2015-16 did not have a material impact on the Company’s consolidated financial statements.

In June 2015, the FASB issued ASU 2015-10, “Technical Correction and Improvements,” which, among other things, corrects the initial codification of FASB Statement No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (as Amended by FASB Statement No. 166, Accounting for Transfers of Financial Assets).” The initial codification inadvertently added the word “public” to paragraph 860-10-50-7, which was not in the original guidance. The ASU also clarifies that the requirement relates to “involvement by others”. This amendment in ASU 2015-10 was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU 2015-10 did not have a material impact on the Company’s consolidated financial statements.

In May 2015, the FASB issued ASU 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” This ASU eliminated the requirement to categorize investments in the fair value hierarchy if their fair value is measured at net asset value (NAV) per share (or its equivalent) using the practical expedient in the FASB’s fair value measurement guidance. Reporting entities were required to adopt the ASU retrospectively. The effective date for public business entities was fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The adoption of ASU 2015-07 did not have a material impact on the Company’s consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs were not affected by the amendments in this update. For public business entities, the amendments in this update were effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. An entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented was adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity was required to comply with the applicable disclosures for a change in an accounting principle. These disclosures included the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that had been retrospectively adjusted, and the effect of the change on the financial statement line items (that is, debt issuance cost asset and the debt liability). The adoption of ASU 2015-03 did not have a material impact on the Company’s consolidated financial statements.

In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” This ASU changed the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (VIE), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminated the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. The new guidance excludes money market funds that are required to comply with Rule 2a-7 of the Investment Company Act of 1940 and similar entities from the U.S. GAAP consolidation requirements. The new consolidation guidance was effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2015. At the effective date, all previous consolidation analyses that the guidance affects was required to be reconsidered. This included the consolidation analyses for all VIEs and for all limited partnerships and similar entities that previously were consolidated by the general partner even though the entities were not VIEs. The adoption of ASU 2015-02 did not have a material impact on the Company’s consolidated financial statements.

In January 2015, the FASB issued ASU 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” This ASU eliminated the concept of extraordinary items from U.S. GAAP as part of its simplification initiative. The ASU did not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence. The ASU was effective for interim and annual periods in fiscal years beginning after December 15, 2015. The ASU allowed prospective or retrospective application. The effective date was the same for both public entities and all other entities. The adoption of ASU 2015-01 did not have a material impact on the Company’s consolidated financial statements.

In November 2014, the FASB issued ASU 2014-16, “Derivatives and Hedging (Topic 815),” required an entity to determine the nature of the host contract by considering the economic characteristics and risks of the entire hybrid financial instrument issued in the form of a share, including the embedded derivative feature that is being evaluated for separate accounting from the host contract when evaluating whether the host contract is more akin to debt or equity. In evaluating the stated and implied substantive terms and features, the existence or omission of any single term or feature does not necessarily determine the economic characteristics and risks of the host contract. Although an individual term or feature may weigh more heavily in the evaluation on the basis of facts and circumstances, an entity should use judgment based on an evaluation of all the relevant terms and features. This ASU was effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The effects of initially adopting the amendments should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year for which the amendment is effective. Retrospective application was permitted to all relevant prior periods. The adoption of ASU 2014-16 did not have a material impact on the Company’s consolidated financial statements.

In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU describes how an entity’s management should assess whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management should consider both quantitative and qualitative factors in making its assessment. If after considering management’s plans, substantial doubt about an entity’s going concern is alleviated, an entity shall disclose information in the footnotes that enables the users of the financial statements to understand the events that raised the going concern and how management’s plan alleviated this concern. If after considering management’s plans, substantial doubt about an entity’s going concern is not alleviated, the entity shall disclose in the footnotes indicating that a substantial doubt about the entity’s going concern exists within one year of the date of the issued financial statements. Additionally, the entity shall disclose the events that led to this going concern and management’s plans to mitigate them. The new standard applies to all entities for the first annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The adoption of ASU 2014-15 is not expected to have a material impact on the Company’s consolidated financial statements.

In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performing Target Could Be Achieved after the Requisite Service Period.” This ASU requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. A reporting entity should apply FASB ASC Topic 718, Compensation-Stock Compensation, to awards with performance conditions that affect vesting. This update was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, for all entities. ASU 2014-12 may be adopted either prospectively for share-based payment awards granted or modified on or after the effective date, or retrospectively, using a modified retrospective approach. The modified retrospective approach would apply to share-based payment awards outstanding as of the beginning of the earliest annual period presented in the financial statements on adoption, and to all new or modified awards thereafter. The adoption of ASU 2014-12 did not have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” This ASU implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of this update is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 establishes a five-step model that entities must follow to recognize revenue and removes inconsistencies and weaknesses in existing guidance. Per ASU 2015-14, this update is effective for annual periods and interim periods within fiscal years beginning after December 15, 2017, for public business entities, certain employee benefit plans, and certain not-for-profit entities applying U.S. GAAP. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

RECLASSIFICATION
Certain items previously reported have been reclassified to conform with the current year’s reporting presentation and are considered immaterial.
v3.5.0.2
Business Combinations (Notes)
 6 Months Ended
Jun. 30, 2016
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block]
[2] BUSINESS COMBINATIONS

On April 29, 2016, TriState Capital Holdings, Inc. through its wholly-owned subsidiary, Chartwell Investment Partners, LLC, completed the acquisition of substantially all of the assets of The Killen Group, Inc. (the "TKG acquisition"), an investment management firm with approximately $2.02 billion in assets under management. Under the terms of the Asset Purchase Agreement substantially all of the assets of The Killen Group, Inc. (“TKG”) were acquired for a purchase price consisting of $15.0 million paid in cash at closing based on five-times a base EBITDA (earnings before interest, taxes, depreciation and amortization) of $3.0 million plus an earnout. The earnout, while not limited under the terms of the Asset Purchase Agreement, will be calculated based on a multiple of seven-times the incremental growth in TKG's annual run-rate EBITDA over $3.0 million at December 31, 2016. The earnout is estimated to be approximately $3.7 million based on the estimated annual run-rate EBITDA of TKG at December 31, 2016. Any change to the earnout calculation above the estimated $3.7 million recorded at closing, will be recorded in the income statement in the period in which it is deemed probable to occur. The foregoing summary of the Asset Purchase Agreement and the transactions contemplated by it does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Asset Purchase Agreement, which was included as Exhibit 2.2 to the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 16, 2016, the terms of which Agreement are incorporated herein by reference.

The following table summarizes total consideration paid, assets acquired and liabilities assumed for the TKG acquisition on April 29, 2016:
(Dollars in thousands)
TKG Acquisition
Consideration paid:
 
Cash
$
15,000

Estimated earnout
3,687

Fair value of total consideration
$
18,687

 
 
Fair value of assets acquired:
 
Cash and cash equivalents
$
905

Investment management fees receivable
912

Office properties and equipment
20

Other assets
106

Total assets acquired
1,943

Fair value of liabilities assumed:
 
Other liabilities
1,402

Total liabilities assumed
1,402

Fair value net identifiable assets acquired
541

Intangible assets acquired
13,585

Goodwill
4,561

Total net assets purchased
$
18,687



In connection with the TKG acquisition, total acquisition-related transaction costs incurred by TriState Capital were approximately $601,000 during 2015 and $1,000 during the six months ended June 30, 2016, which were comprised primarily of legal, advisory and other costs.

Since the acquisition, the TKG acquired operations contributed revenues of $1.8 million and earnings of $350,000 included in the consolidated statement of income for the three and six months ended June 30, 2016.

Goodwill is not amortized for book purposes, but is deductible for tax purposes. The following table shows the amount of other intangible assets acquired through the TKG acquisition on April 29, 2016, by class and estimated useful life.
(Dollars in thousands)
Gross Amount
Estimated
Useful Life
(months)
Trade name
$
2,850

300
Client Relationships:
 
 
Sub-advisory client list
330

132
Separate managed accounts client list
715

168
Non-compete agreements
390

48
Total finite-lived intangibles
$
4,285

242
Client Relationships:
 
 
Mutual fund client list
9,300

Indefinite life
Total intangibles assets
$
13,585

 


The following table presents unaudited pro forma financial information which combines the historical consolidated statements of income of the Company and The Killen Group, Inc. to give effect to the acquisition as if it had occurred on January 1, 2015, for the periods indicated.
 
Pro Forma
 
Six Months Ended June 30,
(Dollars in thousands)
2016
2015
Total revenue
$
60,628

$
59,724

Net income
$
13,359

$
11,163

 
 
 
Earnings per common share:
 
 
Basic
$
0.48

$
0.40

Diluted
$
0.47

$
0.40



Total revenue is defined as net interest income and non-interest income, excluding gains and losses on the sale of investment securities available-for-sale. Pro forma adjustments include intangible amortization expense and income tax expense.
v3.5.0.2
Investment Securities
 6 Months Ended
Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES
INVESTMENT SECURITIES

Investment securities available-for-sale and held-to-maturity are comprised of the following:
 
June 30, 2016
(Dollars in thousands)
Amortized
Cost
Gross Unrealized
Appreciation
Gross Unrealized
Depreciation
Estimated
Fair Value
Investment securities available-for-sale:
 
 
 
 
Corporate bonds
$
62,820

$
652

$
20

$
63,452

Trust preferred securities
17,645

—

1,341

16,304

Non-agency mortgage-backed securities
5,750

—

4

5,746

Non-agency collateralized loan obligations
11,591

—

167

11,424

Agency collateralized mortgage obligations
47,130

54

322

46,862

Agency mortgage-backed securities
26,988

327

19

27,296

Agency debentures
4,739

—

89

4,650

Equity securities
8,497

—

420

8,077

Total investment securities available-for-sale
185,160

1,033

2,382

183,811

Investment securities held-to-maturity:
 
 
 
 
Corporate bonds
19,446

507

53

19,900

Municipal bonds
25,328

703

—

26,031

Total investment securities held-to-maturity
44,774

1,210

53

45,931

Total
$
229,934

$
2,243

$
2,435

$
229,742


 
December 31, 2015
(Dollars in thousands)
Amortized
Cost
Gross Unrealized
Appreciation
Gross Unrealized
Depreciation
Estimated
Fair Value
Investment securities available-for-sale:
 
 
 
 
Corporate bonds
$
43,952

$
18

$
237

$
43,733

Trust preferred securities
17,579

—

978

16,601

Non-agency mortgage-backed securities
5,756

—

13

5,743

Non-agency collateralized loan obligations
11,843

—

132

11,711

Agency collateralized mortgage obligations
49,544

92

265

49,371

Agency mortgage-backed securities
28,586

270

187

28,669

Agency debentures
4,719

13

—

4,732

Equity securities
8,358

—

599

7,759

Total investment securities available-for-sale
170,337

393

2,411

168,319

Investment securities held-to-maturity:
 
 
 
 
Corporate bonds
19,448

498

84

19,862

Agency debentures
2,453

19

—

2,472

Municipal bonds
25,389

377

1

25,765

Total investment securities held-to-maturity
47,290

894

85

48,099

Total
$
217,627

$
1,287

$
2,496

$
216,418



The equity securities noted above consist of short-duration, corporate bond mutual funds.

Income on investment securities included $1.0 million in taxable interest income, $118,000 in non-taxable interest income and $167,000 in dividend income for the three months ended June 30, 2016, as compared to taxable interest income of $647,000, non-taxable interest income of $98,000 and dividend income of $106,000 for the three months ended June 30, 2015.

Income on investment securities included $2.0 million in taxable interest income, $232,000 in non-taxable interest income and $337,000 in dividend income for the six months ended June 30, 2016, as compared to taxable interest income of $1.3 million, non-taxable interest income of $188,000 and dividend income of $367,000 for the six months ended June 30, 2015.

As of June 30, 2016, the contractual maturities of the debt securities are:
 
June 30, 2016
 
Available-for-Sale
 
Held-to-Maturity
(Dollars in thousands)
Amortized
Cost
Estimated
Fair Value
 
Amortized
Cost
Estimated
Fair Value
Due in one year or less
$
21,954

$
21,978

 
$
—

$
—

Due from one to five years
42,138

42,740

 
13,569

14,119

Due from five to ten years
9,729

9,564

 
29,778

30,303

Due after ten years
102,842

101,452

 
1,427

1,509

Total debt securities
$
176,663

$
175,734

 
$
44,774

$
45,931



Included in the $101.5 million fair value of debt securities available-for-sale with a contractual maturity due after ten years as of June 30, 2016, were $89.3 million, or 88.0%, in floating-rate securities. Included in the $29.8 million amortized cost of debt securities held-to-maturity with a contractual maturity due from five to ten years as of June 30, 2016, were $8.0 million that have call provisions in one to five years that would either mature, if called, or become floating-rate securities after the call date.

Prepayments may shorten the contractual lives of the collateralized mortgage obligations, mortgage-backed securities and collateralized loan obligations.

Proceeds from the sale of investment securities available-for-sale during the three months ended June 30, 2016 and 2015, were $2.4 million and $0, respectively. Gross gains of $19,000 and $0 were realized on these sales and reclassified out of accumulated other comprehensive income (loss) during the three months ended June 30, 2016 and 2015, respectively. There were $3,000 and $0 gross losses realized on these sales during the three months ended June 30, 2016 and 2015, respectively.

Proceeds from the sale of investment securities available-for-sale during the six months ended June 30, 2016 and 2015, were $3.0 million and $9.7 million, respectively. Gross gains of $20,000 and $34,000 were realized on these sales and reclassified out of accumulated other comprehensive income (loss) during the six months ended June 30, 2016 and 2015, respectively. There were $3,000 and $17,000 gross losses realized on these sales during the six months ended June 30, 2016 and 2015, respectively.

During the six months ended June 30, 2016, there was an investment securities held-to-maturity of $2.5 million, which was called and gross gains of $46,000 was realized on this call and reclassified out of accumulated other comprehensive income (loss).

Investment securities available-for-sale of $5.8 million, as of June 30, 2016, were held in safekeeping at the FHLB and were included in the calculation of borrowing capacity.

The following tables show the fair value and gross unrealized losses on temporarily impaired investment securities available-for-sale and held-to-maturity, by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of June 30, 2016 and December 31, 2015, respectively:
 
June 30, 2016
 
Less than 12 Months
 
12 Months or More
 
Total
(Dollars in thousands)
Fair value
Unrealized losses
 
Fair value
Unrealized losses
 
Fair value
Unrealized losses
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
Corporate bonds
$
—

$
—

 
$
7,138

$
20

 
$
7,138

$
20

Trust preferred securities
8,041

533

 
8,263

808

 
16,304

1,341

Non-agency mortgage-backed securities
5,746

4

 
—

—

 
5,746

4

Non-agency collateralized loan obligations
1,554

44

 
9,870

123

 
11,424

167

Agency collateralized mortgage obligations
29,992

204

 
11,319

118

 
41,311

322

Agency mortgage-backed securities
1,693

19

 
—

—

 
1,693

19

Agency debentures
4,650

89

 
—

—

 
4,650

89

Equity securities
—

—

 
8,077

420

 
8,077

420

Total investment securities available-for-sale
51,676

893

 
44,667

1,489

 
96,343

2,382

Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
Corporate bonds
5,448

53

 
—

—

 
5,448

53

Total investment securities held-to-maturity
5,448

53

 
—

—

 
5,448

53

Total temporarily impaired securities
$
57,124

$
946

 
$
44,667

$
1,489

 
$
101,791

$
2,435


 
December 31, 2015
 
Less than 12 Months
 
12 Months or More
 
Total
(Dollars in thousands)
Fair value
Unrealized losses
 
Fair value
Unrealized losses
 
Fair value
Unrealized losses
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
Corporate bonds
$
23,582

$
155

 
$
6,460

$
82

 
$
30,042

$
237

Trust preferred securities
8,076

471

 
8,526

507

 
16,602

978

Non-agency mortgage-backed securities
—

—

 
5,743

13

 
5,743

13

Non-agency collateralized loan obligations
9,859

132

 
—

—

 
9,859

132

Agency collateralized mortgage obligations
25,566

151

 
11,836

114

 
37,402

265

Agency mortgage-backed securities
1,469

15

 
10,811

172

 
12,280

187

Equity securities
—

—

 
7,759

599

 
7,759

599

Total investment securities available-for-sale
68,552

924

 
51,135

1,487

 
119,687

2,411

Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
Corporate bonds
9,863

84

 
—

—

 
9,863

84

Municipal bonds
571

1

 
—

—

 
571

1

Total investment securities held-to-maturity
10,434

85

 
—

—

 
10,434

85

Total temporarily impaired securities
$
78,986

$
1,009

 
$
51,135

$
1,487

 
$
130,121

$
2,496



The change in the fair values of our municipal bonds, agency collateralized mortgage obligation and agency mortgage-backed securities are primarily the result of interest rate fluctuations. To assess for impairment on municipal bonds, corporate bonds, single-issuer trust preferred securities, non-agency mortgage-backed securities, non-agency collateralized loan obligations and certain equity securities, management evaluates the underlying issuer’s financial performance and the related credit rating information through a review of publicly available financial statements and other publicly available information. This review did not identify any issues related to the ultimate repayment of principal and interest on these securities. In addition, the Company has the ability and intent to hold the securities in an unrealized loss position until recovery of their amortized cost. Based on this, the Company considers all of the unrealized losses to be temporary impairment losses. Within the available-for-sale portfolio, there were 28 positions, aggregating to $2.4 million in unrealized losses that were temporarily impaired as of June 30, 2016, of which 10 positions were in an unrealized loss position for more than twelve months totaling $1.5 million. As of December 31, 2015, there were 36 positions, aggregating to $2.4 million in unrealized losses that were temporarily impaired, of which 14 positions were in an unrealized loss position for more than twelve months totaling $1.5 million. Within the held-to-maturity portfolio, there were three positions, aggregating to $53,000 in unrealized losses that were temporarily impaired as of June 30, 2016, of which no positions were in an unrealized loss position for more than twelve months. As of December 31, 2015, there were six positions, aggregating to $85,000 in unrealized losses that were temporarily impaired, of which no positions were in an unrealized loss position for more than twelve months.

There were no investment securities classified as trading securities outstanding as of June 30, 2016 and December 31, 2015, respectively. There was no activity in investment securities classified as trading during the six months ended June 30, 2016 and 2015.

There was $13.6 million and $9.8 million in FHLB stock outstanding as of June 30, 2016 and December 31, 2015, respectively. There were $3.8 million of net purchases in FHLB stock during the six months ended June 30, 2016, and $1.3 million of net redemptions during the six months ended June 30, 2015.
v3.5.0.2
Loans
 6 Months Ended
Jun. 30, 2016
Receivables [Abstract]  
LOANS
LOANS

We generate loans through our middle-market and private banking channels. These channels provide risk diversification and offer significant growth opportunities. The middle-market banking channel consists of our commercial and industrial (“C&I”) and commercial real estate (“CRE”) loan portfolios that serve middle-market businesses and real estate developers. The private banking channel includes loans secured by cash, marketable securities and other asset-based loans to executives, high-net-worth individuals, trusts and businesses, many of whom we source through referral relationships with independent broker/dealers, wealth managers, family offices, trust companies and other financial intermediaries.

Loans held-for-investment were comprised of the following:
 
June 30, 2016
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Loans held-for-investment, before deferred fees
$
573,952

$
990,740

$
1,432,489

$
2,997,181

Deferred loan (fees) costs
(219
)
(2,709
)
3,056

128

Loans held-for-investment, net of deferred fees
573,733

988,031

1,435,545

2,997,309

Allowance for loan losses
(10,841
)
(4,872
)
(1,502
)
(17,215
)
Loans held-for-investment, net
$
562,892

$
983,159

$
1,434,043

$
2,980,094


 
December 31, 2015
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Loans held-for-investment, before deferred fees
$
634,857

$
864,863

$
1,341,988

$
2,841,708

Deferred loan (fees) costs
(625
)
(2,675
)
2,876

(424
)
Loans held-for-investment, net of deferred fees
634,232

862,188

1,344,864

2,841,284

Allowance for loan losses
(11,064
)
(5,344
)
(1,566
)
(17,974
)
Loans held-for-investment, net
$
623,168

$
856,844

$
1,343,298

$
2,823,310



The Company’s customers have unused loan commitments. Often these commitments are not fully utilized and therefore the total amount does not necessarily represent future cash requirements. The amount of unfunded commitments, including standby letters of credit, as of June 30, 2016 and December 31, 2015, was $1.48 billion and $1.27 billion, respectively. The interest rate for each commitment is based on the prevailing market conditions at the time of funding. The lending commitment maturities as of June 30, 2016, were as follows: $1.16 billion in one year or less; $192.4 million in one to three years; and $134.1 million in greater than three years. The reserve for losses on unfunded commitments was $579,000 and $546,000 as of June 30, 2016 and December 31, 2015, respectively, which includes reserves for probable losses on unfunded loan commitments, including standby letters of credit and also risk participations.

Included in the unfunded commitment totals listed above, were loans in the process of origination totaling approximately $34.0 million and $31.1 million as of June 30, 2016 and December 31, 2015, respectively, which extend over varying periods of time.

The Company issues standby letters of credit in the normal course of business. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. The Company would be required to perform under the standby letters of credit when drawn upon by the guaranteed party in the case of non-performance by the Company’s customer. Collateral may be obtained based on management’s credit assessment of the customer. The amount of unfunded commitments related to standby letters of credit as of June 30, 2016 and December 31, 2015, included in the total listed above, was $83.5 million and $89.9 million, respectively. Should the Company be obligated to perform under the standby letters of credit the Company will seek repayment from the customer for amounts paid. As of June 30, 2016, $44.1 million in standby letters of credit will expire within one year, while the remaining standby letters of credit will expire in periods greater than one year. During the six months ended June 30, 2016, there was one draw on a standby letter of credit totaling $100,000, which was immediately repaid by the borrower. During the six months ended June 30, 2015, there was one draw on a standby letters of credit totaling $100,000, which was immediately repaid by the borrower. Most of these commitments are expected to expire without being drawn upon and the total amount does not necessarily represent future cash requirements. The probable liability for losses on standby letters of credit was included in the reserve for losses on unfunded commitments.

The Company has entered into risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are a participant. The risk participation agreements provide credit protection to the financial institution counterparties should the customers fail to perform on their interest rate derivative contracts. The potential liability for outstanding obligations was included in the reserve for losses on unfunded commitments.
v3.5.0.2
Allowance for Loan Losses
 6 Months Ended
Jun. 30, 2016
Allowance for Loan Losses [Abstract]  
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES

Our allowance for loan losses represents our estimate of probable loan losses inherent in the loan portfolio at a specific point in time. This estimate includes losses associated with specifically identified loans, as well as estimated probable credit losses inherent in the remainder of the loan portfolio. Additions are made to the allowance through both periodic provisions charged to income and recoveries of losses previously incurred. Reductions to the allowance occur as loans are charged off or when the credit history of any of the three loan portfolios improves. Management evaluates the adequacy of the allowance quarterly, and in doing so relies on various factors including, but not limited to, assessment of historical loss experience, delinquency and non-accrual trends, portfolio growth, underlying collateral coverage and current economic conditions. This evaluation is subjective and requires material estimates that may change over time. In addition, management evaluates the overall methodology for the allowance for loan losses on an annual basis. The calculation of the allowance for loan losses takes into consideration the inherent risk identified within each of the Company’s three primary loan portfolios, commercial and industrial, commercial real estate and private banking. In addition, management takes into account the historical loss experience of each loan portfolio, to ensure that the resultant allowance for loan losses is sufficient to cover probable losses inherent in such loan portfolios. Refer to Note 1, Summary of Significant Accounting Policies, for more details on the Company’s allowance for loan losses policy.

The following discusses key characteristics and risks within each primary loan portfolio:

Middle-Market Banking: Commercial and Industrial Loans. This loan portfolio primarily includes loans made to service companies or manufacturers generally for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing, acquisitions and recapitalizations. Cash flow from the borrower’s operations is the primary source of repayment for these loans, except for certain commercial loans that are secured by cash and marketable securities.

The industry of the borrower is an important indicator of risk, but there are also more specific risks depending on the condition of the local/regional economy. Collateral for these types of loans at times does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt. Any C&I loans collateralized by cash and marketable securities are treated the same as private banking loans for purposes of the allowance for loan loss calculation. In addition, shared national credit loans that also involve a private equity sponsor are combined as a homogeneous group and evaluated separately based on the historical loss trend of such loans.

Middle-Market Banking: Commercial Real Estate Loans. This loan portfolio includes loans secured by commercial purpose real estate, including both owner occupied properties and investment properties for various purposes including office, retail, industrial, multifamily and hospitality. Individual project cash flows, global cash flows and liquidity from the developer, or the sale of the property are the primary sources of repayment for these loans. Also included are commercial construction loans to finance the construction or renovation of structures as well as to finance the acquisition and development of raw land for various purposes. The increased level of risk of these loans is generally confined to the construction period. If there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal.

The underlying purpose/collateral of the loans is an important indicator of risk for this loan portfolio. Additional risks exist and are dependent on several factors such as the condition of the local/regional economy, whether or not the project is owner occupied, the type of project, and the experience and resources of the developer.

Private Banking Loans. Our private banking lending activities are conducted on a national basis. This loan portfolio primarily includes loans made to high-net-worth individuals, trusts and businesses that are typically secured by cash and marketable securities. Some loans are secured by residential real estate or other financial assets. The portfolio also has lines of credit and unsecured loans. The primary sources of repayment for these loans are the income and/or assets of the borrower.

The underlying collateral is the most important indicator of risk for this loan portfolio. The overall lower risk profile of this portfolio is driven by loans secured by cash and marketable securities, which was 89.5% and 87.8% of total private banking loans as of June 30, 2016 and December 31, 2015, respectively.

Management further assesses risk within each loan portfolio using key inherent risk differentiators. The components of the allowance for loan losses represent estimates based upon ASC Topic 450, Contingencies, and ASC Topic 310, Receivables. ASC Topic 450 applies to homogeneous loan pools such as consumer installment, residential mortgages and consumer lines of credit, as well as commercial loans that are not individually evaluated for impairment under ASC Topic 310. Impaired loans are individually evaluated for impairment under ASC Topic 310.

On a monthly basis, management monitors various credit quality indicators for both the commercial and consumer loan portfolios, including delinquency, non-performing status, changes in risk ratings, changes in the underlying performance of the borrowers and other relevant factors. On a daily basis, the Company monitors the collateral of margin loans secured by cash and marketable securities within the private banking portfolio, which further reduces the risk profile of that portfolio. Refer to Note 1, Summary of Significant Accounting Policies, for the Company’s policy for determining past due status of loans.

Management continually monitors the loan portfolio through its internal risk rating system. Loan risk ratings are assigned based upon the creditworthiness of the borrower and, for our loans secured by marketable securities, the quality of the collateral. Loan risk ratings are reviewed on an ongoing basis according to internal policies. Loans within the pass rating are believed to have a lower risk of loss than loans risk rated as special mention, substandard and doubtful, which are believed to have an increasing risk of loss.

The Company’s risk ratings are consistent with regulatory guidance and are as follows:

Pass – The loan is currently performing in accordance with its contractual terms.

Special Mention – A special mention loan has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects or in our credit position at some future date. Economic and market conditions, beyond the customer’s control, may in the future necessitate this classification.

Substandard – A substandard loan is not adequately protected by the net worth and/or paying capacity of the obligor or by the collateral pledged, if any. Substandard loans have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful – A doubtful loan has all the weaknesses inherent in a loan categorized as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

The following tables present the recorded investment in loans by credit quality indicator:
 
June 30, 2016
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Pass
$
520,589

$
985,119

$
1,434,954

$
2,940,662

Special mention
24,465

—

—

24,465

Substandard
28,679

2,912

591

32,182

Loans held-for-investment
$
573,733

$
988,031

$
1,435,545

$
2,997,309


 
December 31, 2015
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Pass
$
585,561

$
858,396

$
1,342,813

$
2,786,770

Special mention
31,863

880

—

32,743

Substandard
15,835

2,912

2,051

20,798

Doubtful
973

—

—

973

Loans held-for-investment
$
634,232

$
862,188

$
1,344,864

$
2,841,284



Changes in the allowance for loan losses were as follows for the three months ended June 30, 2016 and 2015:
 
Three Months Ended June 30, 2016
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Balance, beginning of period
$
11,464

$
5,666

$
1,416

$
18,546

Provision (credit) for loan losses
788

(794
)
86

80

Charge-offs
(1,543
)
—

—

(1,543
)
Recoveries
132

—

—

132

Balance, end of period
$
10,841

$
4,872

$
1,502

$
17,215


 
Three Months Ended June 30, 2015
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Balance, beginning of period
$
14,191

$
4,973

$
2,041

$
21,205

Provision (credit) for loan losses
426

(224
)
(17
)
185

Charge-offs
—

—

—

—

Recoveries
4

—

13

17

Balance, end of period
$
14,621

$
4,749

$
2,037

$
21,407



There was a charge-off of $1.5 million on one C&I loan and $132,000 of recoveries on four C&I loans for the three months ended June 30, 2016. There were no charge-offs and $17,000 of recoveries on two C&I loans and one private banking loan for the three months ended June 30, 2015.

Changes in the allowance for loan losses were as follows for the six months ended June 30, 2016 and 2015:
 
Six Months Ended June 30, 2016
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Balance, beginning of period
$
11,064

$
5,344

$
1,566

$
17,974

Provision (credit) for loan losses
738

(472
)
(64
)
202

Charge-offs
(1,543
)
—

—

(1,543
)
Recoveries
582

—

—

582

Balance, end of period
$
10,841

$
4,872

$
1,502

$
17,215


 
Six Months Ended June 30, 2015
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Balance, beginning of period
$
13,501

$
4,755

$
2,017

$
20,273

Provision for loan losses
1,109

(6
)
7

1,110

Charge-offs
—

—

—

—

Recoveries
11

—

13

24

Balance, end of period
$
14,621

$
4,749

$
2,037

$
21,407



There was a charge-off of $1.5 million on one C&I loan and $582,000 of recoveries on six C&I loans for the six months ended June 30, 2016. There were no charge-offs and $24,000 of recoveries on three C&I loans and one private banking loan for the six months ended June 30, 2015.

The following tables present the age analysis of past due loans segregated by class of loan:
 
June 30, 2016
(Dollars in thousands)
30-59 Days Past Due
60-89 Days Past Due
Loans Past Due 90 Days or More
Total Past Due
Current
Total
Commercial and industrial
$
—

$
—

$
—

$
—

$
573,733

$
573,733

Commercial real estate
—

—

2,912

2,912

985,119

988,031

Private banking
—

—

224

224

1,435,321

1,435,545

Loans held-for-investment
$
—

$
—

$
3,136

$
3,136

$
2,994,173

$
2,997,309


 
December 31, 2015
(Dollars in thousands)
30-59 Days Past Due
60-89 Days Past Due
Loans Past Due 90 Days or More
Total Past Due
Current
Total
Commercial and industrial
$
—

$
—

$
976

$
976

$
633,256

$
634,232

Commercial real estate
—

—

2,912

2,912

859,276

862,188

Private banking
—

—

1,431

1,431

1,343,433

1,344,864

Loans held-for-investment
$
—

$
—

$
5,319

$
5,319

$
2,835,965

$
2,841,284



Non-Performing and Impaired Loans

Management monitors the delinquency status of the loan portfolio on a monthly basis. Loans were considered non-performing when interest and principal were 90 days or more past due or management has determined that it is probable the borrower is unable to meet payments as they become due. The risk of loss is generally highest for non-performing loans.

Management determines loans to be impaired when, based upon current information and events, it is probable that the loan will not be repaid according to the original contractual terms of the loan agreement, including both principal and interest, or if a loan is designated as a TDR. Refer to Note 1, Summary of Significant Accounting Policies, for the Company’s policy on evaluating loans for impairment and interest income.

The following tables present the Company’s investment in loans considered to be impaired and related information on those impaired loans:
 
As of and for the Six Months Ended June 30, 2016
(Dollars in thousands)
Recorded Investment
Unpaid Principal Balance
Related Allowance
Average Recorded Investment
Interest Income Recognized
With a related allowance recorded:
 
 
 
 
 
Commercial and industrial
$
10,397

$
10,703

$
3,650

$
8,262

$
—

Commercial real estate
—

—

—

—

—

Private banking
580

710

580

641

—

Total with a related allowance recorded
10,977

11,413

4,230

8,903

—

Without a related allowance recorded:
 
 
 
 
 
Commercial and industrial
5,733

11,202

—

7,118

13

Commercial real estate
2,912

9,067

—

2,912

—

Private banking
—

—

—

—

—

Total without a related allowance recorded
8,645

20,269

—

10,030

13

Total:
 
 
 
 
 
Commercial and industrial
16,130

21,905

3,650

15,380

13

Commercial real estate
2,912

9,067

—

2,912

—

Private banking
580

710

580

641

—

Total
$
19,622

$
31,682

$
4,230

$
18,933

$
13


 
As of and for the Twelve Months Ended December 31, 2015
(Dollars in thousands)
Recorded Investment
Unpaid Principal Balance
Related Allowance
Average Recorded Investment
Interest Income Recognized
With a related allowance recorded:
 
 
 
 
 
Commercial and industrial
$
11,797

$
19,204

$
3,800

$
15,331

$
—

Commercial real estate
—

—

—

—

—

Private banking
745

864

745

824

—

Total with a related allowance recorded
12,542

20,068

4,545

16,155

—

Without a related allowance recorded:
 
 
 
 
 
Commercial and industrial
513

1,789

—

838

29

Commercial real estate
2,912

9,067

—

3,108

—

Private banking
1,203

1,448

—

1,202

—

Total without a related allowance recorded
4,628

12,304

—

5,148

29

Total:
 
 
 
 
 
Commercial and industrial
12,310

20,993

3,800

16,169

29

Commercial real estate
2,912

9,067

—

3,108

—

Private banking
1,948

2,312

745

2,026

—

Total
$
17,170

$
32,372

$
4,545

$
21,303

$
29



Impaired loans as of June 30, 2016 and December 31, 2015, were $19.6 million and $17.2 million, respectively. There was no interest income recognized on these loans, while on non-accrual status, for the six months ended June 30, 2016, and the twelve months ended December 31, 2015. As of June 30, 2016 and December 31, 2015, there were no loans 90 days or more past due and still accruing interest income.

Impaired loans were evaluated using a discounted cash flow method or based on the fair value of the collateral less estimated selling costs. Based on those evaluations, as of June 30, 2016, there were specific reserves totaling $4.2 million, which were included in the $17.2 million allowance for loan losses. Also included in impaired loans were two C&I loans and one CRE loan with a combined balance of $8.6 million as of June 30, 2016, with no corresponding specific reserve since these loans had a net realizable value that management believes will be recovered from the borrower.

As of December 31, 2015, there were specific reserves totaling $4.5 million, which were included in the $18.0 million allowance for loan losses. Also included in impaired loans were three C&I loans, one CRE loans and two private banking loans with a combined balance of $4.6 million as of December 31, 2015, with no corresponding specific reserve since these loans had a net realizable value that management believes will be recovered from the borrower.

The following tables present the allowance for loan losses and recorded investment in loans by class:
 
June 30, 2016
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Allowance for loan losses:
 
 
 
 
Individually evaluated for impairment
$
3,650

$
—

$
580

$
4,230

Collectively evaluated for impairment
7,191

4,872

922

12,985

Total allowance for loan losses
$
10,841

$
4,872

$
1,502

$
17,215

Loans held-for-investment:
 
 
 
 
Individually evaluated for impairment
$
16,130

$
2,912

$
580

$
19,622

Collectively evaluated for impairment
557,603

985,119

1,434,965

2,977,687

Loans held-for-investment
$
573,733

$
988,031

$
1,435,545

$
2,997,309


 
December 31, 2015
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Allowance for loan losses:
 
 
 
 
Individually evaluated for impairment
$
3,800

$
—

$
745

$
4,545

Collectively evaluated for impairment
7,264

5,344

821

13,429

Total allowance for loan losses
$
11,064

$
5,344

$
1,566

$
17,974

Loans held-for-investment:
 
 
 
 
Individually evaluated for impairment
$
12,310

$
2,912

$
1,948

$
17,170

Collectively evaluated for impairment
621,922

859,276

1,342,916

2,824,114

Loans held-for-investment
$
634,232

$
862,188

$
1,344,864

$
2,841,284



Troubled Debt Restructuring

The following table provides additional information on the Company’s loans designated as troubled debt restructurings:
(Dollars in thousands)
June 30,
2016
December 31,
2015
Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring:
 
 
Performing loans accruing interest
$
474

$
510

Non-accrual loans
8,923

12,894

Total troubled debt restructurings
$
9,397

$
13,404



Of the non-accrual loans as of June 30, 2016, two C&I loans were designated by the Company as TDRs. There was also one C&I loan that was still accruing interest and designated by the Company as a performing TDR as of June 30, 2016. The aggregate recorded investment of these loans was $9.4 million. There were unused commitments of $39,000 as of June 30, 2016, which was related to the performing TDR.

Of the non-accrual loans as of December 31, 2015, five C&I loans and one residential mortgage loan were designated by the Company as TDRs. There was also one C&I loan that was still accruing interest and designated by the Company as a performing TDR as of December 31, 2015. The aggregate recorded investment of these loans was $13.4 million. There were unused commitments of $1.7 million on these loans as of December 31, 2015, of which $39,000 was related to the performing TDR.

The modifications made to restructured loans typically consist of an extension or reduction of the payment terms, or the deferral of principal payments. There were no loans modified as a TDR within twelve months of the corresponding balance sheet date with a payment default during the six months ended June 30, 2016. There were two loans for $5.6 million that were modified as a TDR within twelve months of the corresponding balance sheet date with a payment default during the six months ended June 30, 2015, that were already on non-accrual status and fully secured or adequately reserved as of June 30, 2015.

There were no modifications made to loans designated as TDRs during the three and six months ended June 30, 2016.

The financial effects of modifications made to loans designated as TDRs during three months ended June 30, 2015, were as follows:
 
Three Months Ended June 30, 2015
(Dollars in thousands)
Count
Recorded Investment at the time of Modification
Current Recorded Investment
Allowance for Loan Losses at the time of Modification
Current Allowance for Loan Losses
Commercial and industrial:
 
 
 
 
 
Change in interest terms
1
$
4,064

$
4,021

$
400

$
—

Total
1
$
4,064

$
4,021

$
400

$
—


The financial effects of modifications made to loans designated as TDRs during six months ended June 30, 2015, were as follows:
 
Six Months Ended June 30, 2015
(Dollars in thousands)
Count
Recorded Investment at the time of Modification
Current Recorded Investment
Allowance for Loan Losses at the time of Modification
Current Allowance for Loan Losses
Commercial and industrial:
 
 
 
 
 
Change in interest terms
1
$
4,064

$
4,021

$
400

$
—

Extended term and deferred principal
1
433

—

433

—

Deferred principal
2
6,849

4,495

1,500

3,353

Total
4
$
11,346

$
8,516

$
2,333

$
3,353



Other Real Estate Owned

As of June 30, 2016 and December 31, 2015, the balance of the other real estate owned portfolio was $1.7 million and $1.7 million, respectively. There were no residential mortgage loans in the process of foreclosure as of June 30, 2016.
v3.5.0.2
Goodwill and Other Intangibles Assets (Notes)
 6 Months Ended
Jun. 30, 2016
Goodwill [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
[6] GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill of $4.6 million and other intangible assets of $13.6 million were recorded during the six months ended June 30, 2016, related to the TKG acquisition.

The following table presents the change in goodwill for the six months ended June 30, 2016 and 2015:
 
Six Months Ended June 30,
(Dollars in thousands)
2016
2015
Balance, beginning of period
$
34,163

$
34,163

Additions
4,561

—

Balance, end of period
$
38,724

$
34,163



The Company determined the amount of identifiable intangible assets based upon an independent valuation. The following table presents the change in intangible assets for the six months ended June 30, 2016 and 2015:
 
Six Months Ended June 30,
(Dollars in thousands)
2016
2015
Balance, beginning of period
$
16,653

$
18,211

Additions
13,585

—

Amortization
(828
)
(779
)
Balance, end of period
$
29,410

$
17,432



The following table presents the gross amount of intangible assets and total accumulated amortization by class:
 
June 30, 2016
 
December 31, 2015
(Dollars in thousands)
Gross Amount
Accumulated Amortization
Net Carrying Amount
 
Gross Amount
Accumulated Amortization
Net Carrying Amount
Trade name
$
4,040

$
(158
)
$
3,882

 
$
1,190

$
(109
)
$
1,081

Client Relationships:
 
 
 
 
 
 
 
Sub-advisory client list
11,530

(1,941
)
9,589

 
11,200

(1,521
)
9,679

Separate managed accounts client list
1,810

(264
)
1,546

 
1,095

(201
)
894

Other institutional client list
5,950

(1,262
)
4,688

 
5,950

(992
)
4,958

Non-compete agreements
465

(60
)
405

 
75

(34
)
41

Total finite-lived intangibles
$
23,795

$
(3,685
)
$
20,110

 
$
19,510

$
(2,857
)
$
16,653

Client Relationships:
 
 
 
 
 
 
 
Mutual fund client list (indefinite-lived)
9,300

—

9,300

 
—

—

—

Total intangibles assets
$
33,095

$
(3,685
)
$
29,410

 
$
19,510

$
(2,857
)
$
16,653



Amortization expense on finite-lived intangible assets totaled $438,000 and $390,000 for the three months ended June 30, 2016, and 2015. Amortization expense on finite-lived intangible assets totaled $828,000 and $779,000 for the six months ended June 30, 2016, and 2015.

The following is a summary of the expected amortization expense for finite-lived intangibles assets, assuming no future additions, for each of the five years following June 30, 2016:
(Dollars in thousands)
Amount
June 30,
 
2017
$
1,851

2018
1,845

2019
1,832

2020
1,816

2021
1,734

Thereafter
11,032

Total finite-lived intangibles
$
20,110

Indefinite-lived intangibles
9,300

Total intangibles assets
$
29,410
v3.5.0.2
Deposits
 6 Months Ended
Jun. 30, 2016
Deposits [Abstract]  
DEPOSITS
DEPOSITS
 
Interest Rate
Range as of
 
Weighted Average
Interest Rate as of
 
Balance as of
(Dollars in thousands)
June 30,
2016
 
June 30,
2016
December 31,
2015
 
June 30,
2016
December 31,
2015
Demand and savings accounts:
 
 
 
 
 
 
 
Noninterest-bearing checking accounts
—

 
—

—

 
$
160,538

$
159,859

Interest-bearing checking accounts
0.05 to 0.60%

 
0.49
%
0.42
%
 
181,318

136,037

Money market deposit accounts
0.05 to 1.50%

 
0.70
%
0.50
%
 
1,657,272

1,464,279

Total demand and savings accounts
 
 
 
 
 
1,999,128

1,760,175

Time deposits
0.05 to 1.44%

 
0.87
%
0.78
%
 
889,064

929,669

Total deposit balance
 
 
 
 
 
$
2,888,192

$
2,689,844

Average rate paid on interest-bearing accounts
 
 
0.74
%
0.60
%
 
 
 


As of June 30, 2016 and December 31, 2015, the Bank had total brokered deposits of $1.06 billion and $1.05 billion, respectively. The amount for brokered deposits includes reciprocal Certificate of Deposit Account Registry Service® (“CDARS®”) and reciprocal Insured Cash Sweep® (“ICS®”) accounts totaling $470.0 million and $496.5 million as of June 30, 2016 and December 31, 2015, respectively.

As of June 30, 2016 and December 31, 2015, time deposits with balances of $100,000 or more, excluding brokered time deposit, amounted to $373.9 million and $409.2 million, respectively. Time deposits with balances of $250,000 or more, excluding brokered time deposit, amounted to $150.8 million and $142.7 million as of June 30, 2016 and December 31, 2015, respectively.

The contractual maturity of time deposits, including brokered deposits, is as follows:
(Dollars in thousands)
June 30,
2016
December 31,
2015
12 months or less
$
708,279

$
645,004

12 months to 24 months
156,101

219,333

24 months to 36 months
24,684

65,332

36 months to 48 months
—

—

48 months to 60 months
—

—

Over 60 months
—

—

Total
$
889,064

$
929,669



Interest expense on deposits is as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(Dollars in thousands)
2016
2015
 
2016
2015
Interest-bearing checking accounts
$
154

$
99

 
$
307

$
219

Money market deposit accounts
2,622

1,336

 
4,829

2,556

Time deposits
1,827

1,741

 
3,605

3,293

Total interest expense on deposits
$
4,603

$
3,176

 
$
8,741

$
6,068
v3.5.0.2
Borrowings
 6 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
BORROWINGS
BORROWINGS

As of June 30, 2016 and December 31, 2015, borrowings were comprised of the following:
 
June 30, 2016
 
December 31, 2015
(Dollars in thousands)
Interest Rate
Ending Balance
Maturity Date
 
Interest Rate
Ending Balance
Maturity Date
FHLB borrowings:
 
 
 
 
 
 
 
Issued 6/30/2016
0.51
%
$
75,000

7/1/2016
 

$
—


Issued 6/29/2016
0.66
%
100,000

9/29/2016
 

—


Issued 12/31/2015

—


 
0.51
%
170,000

1/4/2016
Issued 7/29/2015
0.61
%
25,000

8/4/2016
 
0.61
%
25,000

8/4/2016
Issued 7/29/2015
0.72
%
25,000

11/3/2016
 
0.72
%
25,000

11/3/2016
Subordinated notes payable (net of debt issuance costs of $591 and $692)
5.75
%
34,409

7/1/2019
 
5.75
%
34,308

7/1/2019
Total borrowings, net
 
$
259,409

 
 
 
$
254,308

 


The Bank’s FHLB borrowing capacity is based on the collateral value of certain securities held in safekeeping at the FHLB and loans pledged to the FHLB. The Bank submits a quarterly Qualified Collateral Report (“QCR”) to the FHLB to update the value of the loans pledged. As of June 30, 2016, the Bank’s borrowing capacity is based on the information provided in the March 31, 2016, QCR filing. As of June 30, 2016, the Bank had securities held in safekeeping at the FHLB with a fair value of $5.8 million, combined with pledged loans of $774.0 million, for a borrowing capacity of $554.8 million, of which $225.0 million was outstanding in advances, as reflected in the table above. As of December 31, 2015, there was $220.0 million outstanding in advances from the FHLB. When the Bank borrows from the FHLB, interest is charged at the FHLB’s posted rates at the time of the borrowing.

The Bank maintains an unsecured line of credit of $10.0 million with M&T Bank and an unsecured line of credit of $20.0 million with Texas Capital Bank. As of June 30, 2016, the full amount of these established lines were available to the Bank.

The Holding Company established an unsecured line of credit of $25.0 million, effective December 29, 2015, with Texas Capital Bank. As of June 30, 2016, the full amount of this established line was available.

In June 2014, we completed a private placement of subordinated notes payable, raising $35.0 million. The subordinated notes have a term of 5 years at a fixed rate of 5.75%. The proceeds qualified as Tier 2 capital for the holding company, under federal regulatory capital rules.
v3.5.0.2
Regulatory Capital
 6 Months Ended
Jun. 30, 2016
Regulatory Capital Requirements [Abstract]  
REGULATORY CAPITAL
REGULATORY CAPITAL

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the tables below) of Common Equity Tier 1 (“CET 1”), Tier 1 and Total risk-based capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to average assets (as defined). As of June 30, 2016 and March 31, 2016, TriState Capital Holdings, Inc. and TriState Capital Bank exceeded all capital adequacy requirements to which they are subject.

Financial depository institutions are categorized as well capitalized if they meet minimum Total risk-based, Tier 1 risk-based, CET 1 risk-based capital ratios and Tier 1 leverage ratio (Tier 1 capital to average assets) as set forth in the tables below. Based upon the information in the most recently filed Call Report, the Bank exceeded the capital ratios necessary to be well capitalized under the regulatory framework for prompt corrective action. There have been no conditions or events since the filing of the most recent Call Report that management believes have changed the Bank’s capital, as presented below.

In December 2010, the Basel Committee released a final framework for a strengthened set of capital requirements, known as Basel III. In July 2013, final rules implementing the Basel III capital accord were adopted by the federal banking agencies. Basel III, which began phasing in on January 1, 2015, has replaced the existing regulatory capital rules for the Company and the Bank. The Basel III final rules required new minimum capital ratio standards, established a new common equity tier 1 to total risk-weighted assets ratio, subjected banking organizations to certain limitations on capital distributions and discretionary bonus payments and established a new standardized approach for risk weightings.

The following tables set forth certain information concerning the Company’s and the Bank’s regulatory capital as of June 30, 2016 and December 31, 2015:
 
June 30, 2016
 
Actual
 
For Capital Adequacy Purposes
 
To be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)
Amount
Ratio
 
Amount
Ratio
 
Amount
Ratio
Total risk-based capital ratio
 
 
 
 
 
 
 
 
Company
$
321,170

12.76
%
 
$
201,322

8.00
%
 
 N/A

N/A

Bank
$
304,080

12.24
%
 
$
198,774

8.00
%
 
$
248,468

10.00
%
Tier 1 risk-based capital ratio
 
 
 
 
 
 
 
 
Company
$
283,157

11.25
%
 
$
150,992

6.00
%
 
 N/A

N/A

Bank
$
286,628

11.54
%
 
$
149,081

6.00
%
 
$
198,774

8.00
%
Common equity tier 1 risk-based capital ratio
 
 
 
 
 
 
 
 
Company
$
283,157

11.25
%
 
$
113,244

4.50
%
 
 N/A

N/A

Bank
$
286,628

11.54
%
 
$
111,810

4.50
%
 
$
161,504

6.50
%
Tier 1 leverage ratio
 
 
 
 
 
 
 
 
Company
$
283,157

8.41
%
 
$
134,737

4.00
%
 
 N/A

N/A

Bank
$
286,628

8.57
%
 
$
133,752

4.00
%
 
$
167,190

5.00
%

 
December 31, 2015
 
Actual
 
For Capital Adequacy Purposes
 
To be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)
Amount
Ratio
 
Amount
Ratio
 
Amount
Ratio
Total risk-based capital ratio
 
 
 
 
 
 
 
 
Company
$
326,378

13.88
%
 
$
188,176

8.00
%
 
 N/A

N/A

Bank
$
310,624

13.35
%
 
$
186,077

8.00
%
 
$
232,596

10.00
%
Tier 1 risk-based capital ratio
 
 
 
 
 
 
 
 
Company
$
287,072

12.20
%
 
$
141,132

6.00
%
 
 N/A

N/A

Bank
$
292,234

12.56
%
 
$
139,558

6.00
%
 
$
186,077

8.00
%
Common equity tier 1 risk-based capital ratio
 
 
 
 
 
 
 
 
Company
$
287,072

12.20
%
 
$
105,849

4.50
%
 
 N/A

N/A

Bank
$
292,234

12.56
%
 
$
104,668

4.50
%
 
$
151,187

6.50
%
Tier 1 leverage ratio
 
 
 
 
 
 
 
 
Company
$
287,072

9.05
%
 
$
126,932

4.00
%
 
 N/A

N/A

Bank
$
292,234

9.29
%
 
$
125,870

4.00
%
 
$
157,338

5.00
%


In addition, the final rules subject a banking organization to certain limitations on capital distributions and discretionary bonus payments to executive officers if the organization does not maintain a capital conservation buffer of risk-based capital ratios in an amount greater than 2.5% of its total risk-weighted assets. The implementation of the capital conservation buffer began on January 1, 2016, at 0.625% and will be phased in over a four-year period (increasing by that amount ratably on each subsequent January 1, until it reaches 2.5% on January 1, 2019).

The Company has not paid dividends to its holders of its common shares since its inception in 2007.
v3.5.0.2
Employee Benefit Plans
 6 Months Ended
Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]  
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS

The Company participates in a qualified 401(k) defined contribution plan, under which eligible employees may contribute a percentage of their salary at their discretion. During the six months ended June 30, 2016 and 2015, the Company automatically contributed three percent of the employee’s base salary to the individual’s 401(k) plan, subject to IRS limitations. Full-time employees and certain part-time employees are eligible to participate upon the first month following their first day of employment or having attained the age of 21, whichever is later. The Company’s contribution expense was $206,000 and $166,000 for the three months ended June 30, 2016 and 2015, respectively, including incidental administrative fees paid to a third party administrator of the plan. The Company’s contribution expense was $402,000 and $353,000 for the six months ended June 30, 2016 and 2015, respectively, including incidental administrative fees paid to a third party administrator of the plan.

On February 28, 2013, the Company entered into a supplemental executive retirement plan (“SERP”) for the Chairman and Chief Executive Officer. The benefits will be earned over a five-year period with the projected payments for this SERP of $25,000 per month for 180 months commencing the later of retirement or 60 months. For the three and six months ended June 30, 2016, the Company recorded expense related to SERP of $232,000 and $454,000, utilizing a discount rate of 2.15%. For the three and six months ended June 30, 2015, the Company recorded expense related to SERP of $199,000 and $391,000, utilizing a discount rate of 2.98%. The recorded liability related to the SERP plan was $2.5 million and $2.1 million as of June 30, 2016 and December 31, 2015, respectively.
v3.5.0.2
Stock Transactions
 6 Months Ended
Jun. 30, 2016
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]  
STOCK TRANSACTIONS
STOCK TRANSACTIONS

In October 2014, the Board of Directors authorized the repurchase of up to $10 million, or up to 1,000,000 shares, of the Company’s common stock through December 31, 2015. Under this plan, the Company repurchased the total of 1,000,000 shares for approximately $9.9 million at an average cost of $9.90 per share and are held as treasury stock.

In January 2016, the Board of Directors authorized another repurchase of up to $10 million, or up to 1,000,000 shares, of the Company’s common stock. During the six months ended June 30, 2016, the Company repurchased a total of 257,722 shares for approximately $3.2 million, at an average cost of $12.33 per share.

The tables below show the changes in the Company’s common shares outstanding during the periods indicated.
 
Number of
Common Shares
Outstanding
Balance, December 31, 2014
28,060,888

Issuance of restricted common stock
255,916

Forfeitures of restricted common stock
—

Exercise of stock options
5,000

Purchase of treasury stock
(321,109
)
Balance, June 30, 2015
28,000,695

 
 
Balance, December 31, 2015
28,056,195

Issuance of restricted common stock
394,309

Forfeitures of restricted common stock
(4,000
)
Exercise of stock options
22,500

Purchase of treasury stock
(257,722
)
Balance, June 30, 2016
28,211,282
v3.5.0.2
Earnings Per Common Share
 6 Months Ended
Jun. 30, 2016
Earnings Per Share [Abstract]  
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE

The computation of basic and diluted earnings per common share for the periods presented is as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(Dollars in thousands, except per share data)
2016
2015
 
2016
2015
 
 
 
 
 
 
Net income available to common shareholders
$
6,773

$
5,728

 
$
12,616

$
10,784

Weighted average common shares outstanding:
 
 
 
 
 
Basic
27,549,475

27,718,226

 
27,601,331

27,804,599

Non-vested restricted stock - dilutive
180,317

48,933

 
147,823

26,780

Stock options - dilutive
495,612

416,889

 
472,728

345,131

Diluted
28,225,404

28,184,048

 
28,221,882

28,176,510

 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
Basic
$
0.25

$
0.21

 
$
0.46

$
0.39

Diluted
$
0.24

$
0.20

 
$
0.45

$
0.38


 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
2015
 
2016
2015
Anti-dilutive shares (1)
421,661

707,893

 
627,893

973,393

(1) 
Included stock options and non-vested restricted stock not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive.
v3.5.0.2
Derivatives and Hedging Activity
 6 Months Ended
Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE AND HEDGING ACTIVITY
DERIVATIVES AND HEDGING ACTIVITY

RISK MANAGEMENT OBJECTIVE OF USING DERIVATIVES
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts related to certain of the Company’s fixed-rate loan assets and differences in the amount, timing, and duration of the Company's known or expected cash payments related to certain of the Company's FHLB borrowings. The Company also has derivatives that are a result of a service the Company provides to certain qualifying customers while at the same time the Company enters into an offsetting derivative transaction in order to eliminate its interest rate risk exposure resulting from such transactions.

FAIR VALUES OF DERIVATIVE INSTRUMENTS ON THE STATEMENTS OF FINANCIAL CONDITION
The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated statements of financial condition as of June 30, 2016 and December 31, 2015:
 
Asset Derivatives
 
Liability Derivatives
 
as of June 30, 2016
 
as of June 30, 2016
(Dollars in thousands)
Balance Sheet Location
Fair Value
 
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments:
 
 
 
 
 
Interest rate products
Other assets
$
—

 
Other liabilities
$
221

Derivatives not designated as hedging instruments:
 
 
 
 
 
Interest rate products
Other assets
$
21,292

 
Other liabilities
$
22,881


 
Asset Derivatives
 
Liability Derivatives
 
as of December 31, 2015
 
as of December 31, 2015
(Dollars in thousands)
Balance Sheet Location
Fair Value
 
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments:
 
 
 
 
 
Interest rate products
Other assets
$
—

 
Other liabilities
$
229

Derivatives not designated as hedging instruments:
 
 
 
 
 
Interest rate products
Other assets
$
8,662

 
Other liabilities
$
9,363



FAIR VALUE HEDGES OF INTEREST RATE RISK
The Company is exposed to changes in the fair value of certain of its fixed-rate obligations due to changes in benchmark interest rates, which relate predominantly to LIBOR. Interest rate swaps designated as fair value hedges involve the receipt of variable-rate payments from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. As of June 30, 2016, the Company had four interest rate swaps, with an aggregate notional amount of $3.0 million that were designated as fair value hedges of interest rate risk associated with the Company’s fixed-rate loan assets. The notional amounts for the derivatives express the face amount of the positions, however, credit risk was considered insignificant for six months ended June 30, 2016 and 2015. There were no counterparty default losses on derivatives for the six months ended June 30, 2016 and 2015.

For the four derivatives that were designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in earnings by applying the “fair value long haul” method. The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related derivatives. During the three months ended June 30, 2016, the Company recognized a net gain of $1,000 in non-interest income related to hedge ineffectiveness as compared to a net gain of $2,000 during the three months ended June 30, 2015. The Company also recognized a decrease to interest income of $23,000 and $76,000 for the three months ended June 30, 2016 and 2015, respectively, related to the Company’s fair value hedges, which includes net settlements on the derivatives, and any amortization adjustment of the basis in the hedged items. During the six months ended June 30, 2016, the Company recognized a net gain of $2,000 in non-interest income related to hedge ineffectiveness as compared to a net gain of $2,000 during the six months ended June 30, 2015. The Company also recognized a decrease to interest income of $47,000 and $158,000 for the six months ended June 30, 2016 and 2015, respectively, related to the Company’s fair value hedges, which includes net settlements on the derivatives, and any amortization adjustment of the basis in the hedged items.

CASH FLOW HEDGES OF INTEREST RATE RISK
The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. In June 2016, the Company entered into two derivative contracts to hedge the variable cash flows associated with certain FHLB borrowings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company’s derivatives did not have any hedge ineffectiveness recognized in earnings during the three months ended June 30, 2016.

Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s debt. During the next twelve months, the Company estimates $87,000 to be reclassified to earnings as an increase to interest expense. The Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of 36 months.

As of June 30, 2016, the Company had two outstanding interest rate derivatives with an aggregate notional amount of $100.0 million that was designated as a cash flow hedge of interest rate risk. During the three months ended June 30, 2016, a net loss of $87,000 was recognized in accumulated other comprehensive income (loss) on the effective portion of the derivative.

NON-DESIGNATED HEDGES
The Company does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate derivatives with its commercial banking customers to facilitate their respective risk management strategies. Those derivatives are simultaneously and economically hedged by offsetting derivatives that the Company executes with a third party, such that the Company eliminates its interest rate exposure resulting from such transactions. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As of June 30, 2016, the Company had 194 derivative transactions with an aggregate notional amount of $784.1 million related to this program. During the three months ended June 30, 2016 and 2015, the Company recognized a net loss of $385,000 and a net gain of $261,000, respectively, related to changes in fair value of the derivatives not designated in hedging relationships. During the six months ended June 30, 2016 and 2015, the Company recognized a net loss of $840,000 and a net gain $44,000, respectively, related to changes in fair value of the derivatives not designated in hedging relationships.

EFFECT OF DERIVATIVE INSTRUMENTS IN THE STATEMENTS OF INCOME
The tables below present the effect of the Company’s derivative financial instruments in the consolidated statements of income for the periods presented:
 
 
 
Three Months Ended June 30,
(Dollars in thousands)
 
 
2016
2015
Derivatives designated as hedging instruments:
Location of Gain (Loss) Recognized in Income on Derivative
 
Amount of Gain (Loss) Recognized in Income on Derivative
Interest rate products
Interest income
 
$
(23
)
$
(76
)
 
Non-interest income
 
1

2

Total
 
 
$
(22
)
$
(74
)
 
 
 
 
 
Derivatives not designated as hedging instruments:
Location of Gain (Loss) Recognized in Income on Derivative
 
Amount of Gain (Loss) Recognized in Income on Derivative
Interest rate products
Non-interest income
 
$
(385
)
$
261

Total
 
 
$
(385
)
$
261


 
 
 
Six Months Ended June 30,
(Dollars in thousands)
 
 
2016
2015
Derivatives designated as hedging instruments:
Location of Gain (Loss) Recognized in Income on Derivative
 
Amount of Gain (Loss) Recognized in Income on Derivative
Interest rate products
Interest income
 
$
(47
)
$
(158
)
 
Non-interest income
 
2

2

Total
 
 
$
(45
)
$
(156
)
 
 
 
 
 
Derivatives not designated as hedging instruments:
Location of Gain (Loss) Recognized in Income on Derivative
 
Amount of Gain (Loss) Recognized in Income on Derivative
Interest rate products
Non-interest income
 
$
(840
)
$
44

Total
 
 
$
(840
)
$
44



CREDIT-RISK-RELATED CONTINGENT FEATURES
The Company has agreements with each of its derivative counterparties that contain a provision where, if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations.

The Company has agreements with certain of its derivative counterparties that contain a provision where, if either the Company or the counterparty fails to maintain its status as a well/adequately capitalized institution, then the Company or the counterparty could be required to terminate any outstanding derivative positions and settle its obligations under the agreement.

As of June 30, 2016, the termination value of derivatives, including accrued interest, in a net liability position related to these agreements was $23.2 million. As of June 30, 2016, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $23.2 million. If the Company had breached any of these provisions as of June 30, 2016, it could have been required to settle its obligations under the agreements at their termination value.
v3.5.0.2
Disclosures About Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2016
Fair Value Disclosures [Abstract]  
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value estimates of financial instruments are based on the present value of expected future cash flows, quoted market prices of similar financial instruments, if available, and other valuation techniques. These valuations are significantly affected by discount rates, cash flow assumptions, and risk assumptions used. Therefore, fair value estimates may not be substantiated by comparison to independent markets and are not intended to reflect the proceeds that may be realized in an immediate settlement of instruments. Accordingly, the aggregate fair value amounts presented below do not represent the underlying value of the Company.

FAIR VALUE MEASUREMENTS
In accordance with U.S. GAAP the Company must account for certain financial assets and liabilities at fair value on a recurring and non-recurring basis. The Company utilizes a three-level fair value hierarchy of valuation techniques to estimate the fair value of its financial assets and liabilities based on whether the inputs to those valuation techniques are observable or unobservable. The fair value hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3). When various inputs for measurement fall within multiple levels of the fair value hierarchy, the lowest level input that has a significant impact on fair value measurement is used.

Financial assets and liabilities are categorized based upon the following characteristics or inputs to the valuation techniques:

•
Level 1 – Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in actively traded markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities.
•
Level 2 – Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets or liabilities that are actively traded. Level 2 also includes pricing models in which the inputs are corroborated by market data, for example, matrix pricing.
•
Level 3 – Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 inputs include assumptions of a source independent of the reporting entity or the reporting entity’s own assumptions that are supported by little or no market activity or observable inputs.

The Company is responsible for the valuation process and as part of this process may use data from outside sources in establishing fair value. The Company performs due diligence to understand the inputs used or how the data was calculated or derived. The Company corroborates the reasonableness of external inputs in the valuation process.

RECURRING FAIR VALUE MEASUREMENTS

The following tables represent assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015:
 
June 30, 2016
(Dollars in thousands)
Level 1
Level 2
Level 3
Total Assets /
Liabilities
at Fair Value
Financial assets:
 
 
 
 
Investment securities available-for-sale:
 
 
 
 
Corporate bonds
$
—

$
63,452

$
—

$
63,452

Trust preferred securities
—

16,304

—

16,304

Non-agency mortgage-backed securities
—

5,746

—

5,746

Non-agency collateralized loan obligations
—

11,424

—

11,424

Agency collateralized mortgage obligations
—

46,862

—

46,862

Agency mortgage-backed securities
—

27,296

—

27,296

Agency debentures
—

4,650

—

4,650

Equity securities
8,077

—

—

8,077

Interest rate swaps
—

21,292

—

21,292

Total financial assets
8,077

197,026

—

205,103

 
 
 
 
 
Financial liabilities:
 
 
 
 
Interest rate swaps
—

23,102

—

23,102

Total financial liabilities
$
—

$
23,102

$
—

$
23,102


 
December 31, 2015
(Dollars in thousands)
Level 1
Level 2
Level 3
Total Assets /
Liabilities
at Fair Value
Financial assets:
 
 
 
 
Investment securities available-for-sale:
 
 
 
 
Corporate bonds
$
—

$
43,733

$
—

$
43,733

Trust preferred securities
—

16,601

—

16,601

Non-agency mortgage-backed securities
—

5,743

—

5,743

Non-agency collateralized loan obligations
—

11,711

—

11,711

Agency collateralized mortgage obligations
—

49,371

—

49,371

Agency mortgage-backed securities
—

28,669

—

28,669

Agency debentures
—

4,732

—

4,732

Equity securities
7,759

—

—

7,759

Interest rate swaps
—

8,662

—

8,662

Total financial assets
7,759

169,222

—

176,981

 
 
 
 
 
Financial liabilities:
 
 
 
 
Interest rate swaps
—

9,592

—

9,592

Total financial liabilities
$
—

$
9,592

$
—

$
9,592


INVESTMENT SECURITIES
Generally, investment securities are valued using pricing for similar securities, recently executed transactions, and other pricing models utilizing observable inputs. The valuations for debt and equity securities are classified as either Level 1 or Level 2. U.S. Treasury Notes and equity securities (including mutual funds) are classified as Level 1 because these securities are in actively traded markets. Investment securities within Level 2 include corporate bonds, single-issuer trust preferred securities, non-agency mortgage-backed securities and collateralized loan obligations, collateralized mortgage obligations and mortgage-backed securities issued by U.S. government agencies and U.S. government agency debentures.

INTEREST RATE SWAPS
The fair value is estimated using inputs that are observable or that can be corroborated by observable market data and, therefore, are classified as Level 2. These fair value estimations include primarily market observable inputs such as the forward LIBOR swap curve.

NON-RECURRING FAIR VALUE MEASUREMENTS

Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

The following tables represent the balances of assets measured at fair value on a non-recurring basis as of June 30, 2016 and December 31, 2015:
 
June 30, 2016
(Dollars in thousands)
Level 1
Level 2
Level 3
Total Assets
at Fair Value
Loans measured for impairment, net
$
—

$
—

$
12,005

$
12,005

Other real estate owned
—

—

1,730

1,730

Total assets
$
—

$
—

$
13,735

$
13,735


 
December 31, 2015
(Dollars in thousands)
Level 1
Level 2
Level 3
Total Assets
at Fair Value
Loans measured for impairment, net
$
—

$
—

$
12,625

$
12,625

Other real estate owned
—

—

1,730

1,730

Total assets
$
—

$
—

$
14,355

$
14,355



As of June 30, 2016, the Company recorded $4.2 million of specific reserves to the allowance for loan losses as a result of adjusting the fair value of impaired loans. As of December 31, 2015, the Company recorded $4.5 million of specific reserves to allowance for loan losses as a result of adjusting the fair value of impaired loans.

IMPAIRED LOANS
A loan is considered impaired when management determines it is probable that all of the principal and interest due under the original terms of the loan may not be collected or if a loan is designated as a TDR. Impairment is measured based on a discounted cash flows method or the fair value of the underlying collateral less estimated selling costs. Our policy is to obtain appraisals on collateral supporting impaired loans on an annual basis, unless circumstances dictate a shorter time frame. Appraisals are reduced by estimated costs to sell the collateral, and, under certain circumstances, additional factors that may arise and cause us to believe our recovered value may be less than the independent appraised value. Accordingly, impaired loans are classified as Level 3. The Company measures impairment on all loans as part of the allowance for loan losses.

OTHER REAL ESTATE OWNED
Real estate owned is comprised of property acquired through foreclosure or voluntarily conveyed by borrowers. These assets are recorded on the date acquired at the lower of the related loan balance or fair value, less estimated disposition costs, with the fair value being determined by appraisal. Our policy is to obtain appraisals on collateral supporting OREO on an annual basis, unless circumstances dictate a shorter time frame. Appraisals are reduced by estimated costs to sell the collateral, and, under certain circumstances, additional factors that may arise and cause us to believe our recovered value may be less than the independent appraised value. Accordingly, real estate owned is classified as Level 3.

LEVEL 3 VALUATION

The following tables present additional quantitative information about assets measured at fair value on a recurring and non-recurring basis and for which we have utilized Level 3 inputs to determine fair value as of June 30, 2016 and December 31, 2015:
 
June 30, 2016
 
(Dollars in thousands)
Fair Value
 
Valuation Techniques (1)
 
Significant Unobservable Inputs
 
Weighted Average
Discount Rate
 
Loans measured for impairment, net
$
12,005

 
Discounted cash flow
 
Discount due to restructured nature of operations
 
7
%
 
 
 
 
 
 
 
 
 
 
Other real estate owned
$
1,730

 
Appraisal value
 
Discount due
to salability conditions
 
10
%
 
(1) 
Fair value is generally determined through independent appraisals of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent.
 
December 31, 2015
 
(Dollars in thousands)
Fair Value
 
Valuation Techniques (1)
 
Significant Unobservable Inputs
 
Weighted Average
Discount Rate
 
Loans measured for impairment, net
$
5,428

 
Appraisal value or Liquidation analysis
 
Discount due
to salability conditions
 
14
%
 
 
 
 
 
 
 
 
 
 
Loans measured for impairment, net
$
7,197

 
Discounted cash flow
 
Discount due to restructured nature of operations
 
7
%
 
 
 
 
 
 
 
 
 
 
Other real estate owned
$
1,730

 
Appraisal value
 
Discount due
to salability conditions
 
10
%
 
(1) 
Fair value is generally determined through independent appraisals or liquidation analysis of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent.

FAIR VALUE OF FINANCIAL INSTRUMENTS

A summary of the carrying amounts and estimated fair values of financial instruments is as follows:
 
 
 
June 30, 2016
 
December 31, 2015
(Dollars in thousands)
Fair Value
Level
 
Carrying
Amount
Estimated
Fair Value
 
Carrying
Amount
Estimated
Fair Value
Financial assets:
 
 
 
 
 
 
 
Cash and cash equivalents
1
 
$
114,297

$
114,297

 
$
96,676

$
96,676

Investment securities available-for-sale: debt
2
 
175,734

175,734

 
160,560

160,560

Investment securities available-for-sale: equity
1
 
8,077

8,077

 
7,759

7,759

Investment securities held-to-maturity
2
 
44,774

45,931

 
47,290

48,099

Federal Home Loan Bank stock
2
 
13,632

13,632

 
9,802

9,802

Loans held-for-investment, net
3
 
2,980,094

2,980,674

 
2,823,310

2,813,278

Accrued interest receivable
2
 
7,774

7,774

 
7,056

7,056

Investment management fees receivable
2
 
7,674

7,674

 
6,191

6,191

Bank owned life insurance
2
 
60,905

60,905

 
60,019

60,019

Interest rate swaps
2
 
21,292

21,292

 
8,662

8,662

Other real estate owned
3
 
1,730

1,730

 
1,730

1,730

 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
Deposits
2
 
$
2,888,192

$
2,889,349

 
$
2,689,844

$
2,690,693

Borrowings, net
2
 
259,409

260,353

 
254,308

255,179

Accrued acquisition earnout liability
3
 
3,687

3,687

 
—

—

Interest rate swaps
2
 
23,102

23,102

 
9,592

9,592



During the six months ended June 30, 2016 and 2015, there were no transfers between fair value Levels 1, 2 or 3.

The following methods and assumptions were used to estimate the fair value of each class of financial instruments as of June 30, 2016 and December 31, 2015:

CASH AND CASH EQUIVALENTS
The carrying amount approximates fair value.

INVESTMENT SECURITIES
The fair values of investment securities available-for-sale, held-to-maturity and trading are based on quoted market prices for the same or similar securities, recently executed transactions and pricing models.

FEDERAL HOME LOAN BANK STOCK
The carrying value of our FHLB stock, which is a marketable equity investment, approximates fair value.

LOANS HELD-FOR-INVESTMENT
The fair value of loans held-for-investment is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Fair value as determined here does not represent an exit price. Impaired loans are generally valued at the fair value of the associated collateral.

ACCRUED INTEREST RECEIVABLE
The carrying amount approximates fair value.

INVESTMENT MANAGEMENT FEES RECEIVABLE
The carrying amount approximates fair value.

BANK OWNED LIFE INSURANCE
The fair value of the general account bank owned life insurance is based on the insurance contract net cash surrender value.

OTHER REAL ESTATE OWNED
Real estate owned is recorded on the date acquired at the lower of the related loan balance or fair value, less estimated disposition costs, with the fair value being determined by appraisal.

DEPOSITS
The fair value of demand deposits is the amount payable on demand as of the reporting date, i.e., their carrying amounts. The fair value of fixed maturity certificates of deposit is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities.

BORROWINGS
The fair value of our borrowings is calculated by discounting scheduled cash flows through the estimated maturity using period end market rates for borrowings of similar remaining maturities.

ACQUISITION EARNOUT LIABILITY
The fair value of the TKG acquisition earnout liability is estimated through the assistance of an independent third party. For additional information on the calculation of the earnout, refer to Note 2, Business Combinations.

INTEREST RATE SWAPS
The fair value of interest rate swaps are estimated through the assistance of an independent third party and compared to the fair value determined by the swap counterparty to establish reasonableness.

OFF-BALANCE SHEET INSTRUMENTS
Fair values for the Company’s off-balance sheet instruments, which consist of lending commitments, standby letters of credit and risk participation agreements related to interest rate swap agreements, are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. Management believes that the fair value of these off-balance sheet instruments is not significant.
v3.5.0.2
Changes in Accumulated Other Comprehensive Income (Loss)
 6 Months Ended
Jun. 30, 2016
Equity [Abstract]  
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table shows the changes in accumulated other comprehensive income (loss), for the periods presented:
 
Three Months Ended June 30,
 
2016
 
2015
(Dollars in thousands)
Investment Securities
Derivatives
Accumulated Other Comprehensive Income (Loss)
 
Investment Securities
Derivatives
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period
$
(2,094
)
$
—

$
(2,094
)
 
$
(345
)
$
—

$
(345
)
Change in unrealized holding gains (losses)
1,114

(56
)
1,058

 
130

—

130

Gains reclassified from other comprehensive income (1)
(40
)
—

(40
)
 
—

—

—

Net other comprehensive income (loss)
1,074

(56
)
1,018

 
130

—

130

Balance, end of period
$
(1,020
)
$
(56
)
$
(1,076
)
 
$
(215
)
$
—

$
(215
)

(1) 
Consists of net realized gain on sale and call of investment securities of $62,000 and $0, net of income tax expense of $22,000 and $0 for the three months ended June 30, 2016 and 2015, respectively.
 
Six Months Ended June 30,
 
2016
 
2015
(Dollars in thousands)
Investment Securities
Derivatives
Accumulated Other Comprehensive Income (Loss)
 
Investment Securities
Derivatives
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period
$
(1,443
)
$
—

$
(1,443
)
 
$
(627
)
$
—

$
(627
)
Change in unrealized holding gains (losses)
464

(56
)
408

 
423

—

423

Gains reclassified from other comprehensive income (1)
(41
)
—

(41
)
 
(11
)
—

(11
)
Net other comprehensive income (loss)
423

(56
)
367

 
412

—

412

Balance, end of period
$
(1,020
)
$
(56
)
$
(1,076
)
 
$
(215
)
$
—

$
(215
)
(1) 
Consists of net realized gain on sale and call of investment securities of $63,000 and $17,000, net of income tax expense of $22,000 and $6,000 for the six months ended June 30, 2016 and 2015, respectively.
v3.5.0.2
Contingent Liabilities
 6 Months Ended
Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]  
CONTINGENT LIABILITIES
CONTINGENT LIABILITIES

The Company is not subject to any asserted claims nor is it aware of any unasserted claims. In the opinion of management, there are no potential claims that would have a material adverse effect on the Company’s financial position, liquidity or results of operations.
v3.5.0.2
Segments
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
SEGMENTS
SEGMENTS

The Company operates two reportable segments: Bank and Investment Management.

•
The Bank segment provides commercial banking and private banking services to middle-market businesses and high-net-worth individuals through the TriState Capital Bank subsidiary.

•
The Investment Management segment provides advisory and sub-advisory investment management services to primarily institutional plan sponsors through the Chartwell Investment Partners, LLC subsidiary and also supports distribution and marketing efforts for Chartwell’s proprietary investment products through the Chartwell TSC Securities Corp. subsidiary.

The following tables provide financial information for the two segments of the Company as of and for the periods indicated. The information provided under the caption “Parent and Other” represents operations not considered to be reportable segments and/or general operating expenses of the Company, which includes the parent company activity as well as eliminations and adjustments that are necessary for purposes of reconciliation to the consolidated amounts.
(Dollars in thousands)
June 30,
2016
December 31,
2015
Assets:
(unaudited)
Bank
$
3,441,794

$
3,236,756

Investment management
82,659

65,516

Parent and other
4,138

(101
)
Total assets
$
3,528,591

$
3,302,171


 
Three Months Ended June 30, 2016
 
Three Months Ended June 30, 2015
(Dollars in thousands)
Bank
Investment
Management
Parent
and Other
Consolidated
 
Bank
Investment
Management
Parent
and Other
Consolidated
Income statement data:
(unaudited)
 
(unaudited)
Interest income
$
23,730

$
—

$
65

$
23,795

 
$
20,429

$
—

$
52

$
20,481

Interest expense
5,025

—

551

5,576

 
3,259

—

549

3,808

Net interest income (loss)
18,705

—

(486
)
18,219

 
17,170

—

(497
)
16,673

Provision for loan losses
80

—

—

80

 
185

—

—

185

Net interest income (loss) after provision for loan losses
18,625

—

(486
)
18,139

 
16,985

—

(497
)
16,488

Non-interest income:
 
 
 
 
 
 
 
 
 
Investment management fees
—

9,517

(55
)
9,462

 
—

7,556

(42
)
7,514

Net gain on the sale and call of investment securities
62

—

—

62

 
—

—

—

—

Other non-interest income
1,922

1

—

1,923

 
2,062

—

—

2,062

Total non-interest income
1,984

9,518

(55
)
11,447

 
2,062

7,556

(42
)
9,576

Non-interest expense:
 
 
 
 
 
 
 
 
 
Intangible amortization expense
—

438

—

438

 
—

390

—

390

Other non-interest expense
12,299

6,683

37

19,019

 
11,690

5,497

5

17,192

Total non-interest expense
12,299

7,121

37

19,457

 
11,690

5,887

5

17,582

Income (loss) before tax
8,310

2,397

(578
)
10,129

 
7,357

1,669

(544
)
8,482

Income tax expense (benefit)
2,662

917

(223
)
3,356

 
2,291

633

(170
)
2,754

Net income (loss)
$
5,648

$
1,480

$
(355
)
$
6,773

 
$
5,066

$
1,036

$
(374
)
$
5,728


 
Six Months Ended June 30, 2016
 
Six Months Ended June 30, 2015
(Dollars in thousands)
Bank
Investment
Management
Parent
and Other
Consolidated
 
Bank
Investment
Management
Parent
and Other
Consolidated
Income statement data:
(unaudited)
 
(unaudited)
Interest income
$
47,017

$
—

$
138

$
47,155

 
$
40,577

$
—

$
106

$
40,683

Interest expense
9,457

—

1,102

10,559

 
6,259

—

1,088

7,347

Net interest income (loss)
37,560

—

(964
)
36,596

 
34,318

—

(982
)
33,336

Provision for loan losses
202

—

—

202

 
1,110

—

—

1,110

Net interest income (loss) after provision for loan losses
37,358

—

(964
)
36,394

 
33,208

—

(982
)
32,226

Non-interest income:
 
 
 
 
 
 
 
 
 
Investment management fees
—

16,590

(109
)
16,481

 
—

15,258

(89
)
15,169

Net gain on the sale and call of investment securities
63

—

—

63

 
17

—

—

17

Other non-interest income
3,817

1

—

3,818

 
3,240

1

—

3,241

Total non-interest income
3,880

16,591

(109
)
20,362

 
3,257

15,259

(89
)
18,427

Non-interest expense:
 
 
 
 
 
 
 
 
 
Intangible amortization expense
—

828

—

828

 
—

779

—

779

Other non-interest expense
24,623

11,977

35

36,635

 
22,943

10,995

(33
)
33,905

Total non-interest expense
24,623

12,805

35

37,463

 
22,943

11,774

(33
)
34,684

Income (loss) before tax
16,615

3,786

(1,108
)
19,293

 
13,522

3,485

(1,038
)
15,969

Income tax expense (benefit)
5,653

1,448

(424
)
6,677

 
4,188

1,321

(324
)
5,185

Net income (loss)
$
10,962

$
2,338

$
(684
)
$
12,616

 
$
9,334

$
2,164

$
(714
)
$
10,784
v3.5.0.2
Subsequent Event
 6 Months Ended
Jun. 30, 2016
Subsequent Events [Abstract]  
SUBSEQUENT EVENT
SUBSEQUENT EVENT
v3.5.0.2
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2016
Accounting Policies [Abstract]  
Use of Estimates
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States of America requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities, disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of related revenue and expense during the reporting period. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual conditions could be worse than those anticipated in the estimates, which could materially affect the financial results of our operations and financial condition.

The material estimates that are particularly susceptible to significant changes relate to the determination of the allowance for loan losses, valuation of goodwill and other intangible assets and its evaluation for impairment, and deferred income taxes and its related recoverability, which are discussed later in this section.
Consolidation
CONSOLIDATION
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, the Bank, Chartwell and CTSC Securities, after elimination of inter-company accounts and transactions. The accounts of the Bank, in turn, include its wholly-owned subsidiary, Meadowood Asset Management, LLC, after elimination of inter-company accounts and transactions. The unaudited consolidated financial statements of the Company presented herein have been prepared pursuant to rules of the Securities and Exchange Commission for quarterly reports on form 10-Q and do not include all of the information and note disclosures required by GAAP for a full year presentation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures, considered necessary for the fair presentation of the accompanying consolidated financial statements, have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2015, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 16, 2016.
Cash and Cash Equivalents
CASH AND CASH EQUIVALENTS
For purposes of reporting cash flows, the Company has defined cash and cash equivalents as cash, interest-earning deposits with other institutions, federal funds sold, and short-term investments that have an original maturity of 90 days or less.
Investment Securities
INVESTMENT SECURITIES
The Company’s investments are classified as either: (1) held-to-maturity – debt securities that the Company intends to hold until maturity and are reported at amortized cost; (2) trading securities – debt and certain equity securities bought and held principally for the purpose of selling them in the near term and reported at fair value, with unrealized gains and losses included in earnings; or (3) available-for-sale – debt and certain equity securities not classified as either held-to-maturity or trading securities and reported at fair value, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss).

The cost of securities sold is determined on a specific identification basis. Amortization of premiums and accretion of discounts are recorded as interest income from investments over the life of the security utilizing the level yield method. We evaluate impaired investment securities quarterly to determine if impairments are temporary or other-than-temporary. For impaired debt and equity securities, management first determines whether it intends to sell or if it is more-likely than not that it will be required to sell the impaired securities. This determination considers current and forecasted liquidity requirements, regulatory and capital requirements and securities portfolio management. If the Company intends to sell a security with a fair value below amortized cost or if it is more-likely than not that it will be required to sell such a security before recovery, an other-than-temporary impairment (“OTTI”) charge is recorded through current period earnings for the full decline in fair value below amortized cost. For debt and equity securities that the Company does not intend to sell or it is more likely than not that it will not be required to sell before recovery, an OTTI charge is recorded through current period earnings for the amount of the valuation decline below amortized cost that is attributable to credit losses. The remaining difference between the security’s fair value and amortized cost (that is, the decline in fair value not attributable to credit losses) is recognized in other comprehensive income (loss), in the consolidated statements of comprehensive income and the shareholders’ equity section of the consolidated statements of financial condition, on an after-tax basis.
Federal Home Loan Bank Stock
FEDERAL HOME LOAN BANK STOCK
The Company is a member of the Federal Home Loan Bank of Pittsburgh (“FHLB”). Member institutions are required to invest in FHLB stock. The stock is carried at cost, which approximates its liquidation value, and it is evaluated for impairment based on the ultimate recoverability of the par value. The following matters are considered by management when evaluating the FHLB stock for impairment: the ability of the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; the impact of legislative and regulatory changes on the institution and its customer base; and the Company’s intent and ability to hold its FHLB stock for the foreseeable future. Management believes the Company’s holdings in the FHLB stock are recoverable at par value, as of June 30, 2016 and December 31, 2015. Cash and stock dividends are reported as interest income, in the consolidated statements of income.
Loans
LOANS
Loans and leases held-for investment are stated at unpaid principal balances, net of deferred loan fees and costs. Loans held-for-sale are stated at the lower of cost or fair value. Interest income on loans is accrued at the contractual rate on the principal amount outstanding and includes the amortization of deferred loan fees and costs. Deferred loan fees and costs are amortized to interest income over the life of the loan, taking into consideration scheduled payments and prepayments.

The Company considers a loan to be a Troubled Debt Restructuring (“TDR”) when there is a concession made to a financially troubled borrower without adequate consideration provided to the Company. Once a loan is deemed to be a TDR, the Company considers whether the loan should be placed in non-accrual status. In assessing accrual status, the Company considers the likelihood that repayment and performance according to the original contractual terms will be achieved, as well as the borrower’s historical payment performance. A loan is designated and reported as TDR until such loan is either paid-off or sold, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the remaining principal and interest will be collected according to the restructured agreement.

The recognition of interest income on a loan is discontinued when, in management’s opinion, it is probable the borrower is unable to meet payments as they become due or when the loan becomes 90 days past due, whichever occurs first. All accrued and unpaid interest on such loans is reversed. Such interest ultimately collected is applied to reduce principal if there is doubt about the collectability of principal. If a borrower brings a loan current for which accrued interest has been reversed, then the recognition of interest income on the loan is resumed, once the loan has been current for a period of six consecutive months or greater.

The Company is a party to financial instruments with off-balance sheet risk (commitments to extend credit) in the normal course of business to meet the financing needs of its customers. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the commitment. Commitments generally have fixed expiration dates or other termination clauses (i.e. demand loans) and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the unfunded commitment amount does not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis using the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained, if deemed necessary by the Company upon extension of a commitment, is based on management’s credit evaluation of the borrower.
Other Real Estate Owned
OTHER REAL ESTATE OWNED
Real estate, other than bank premises, is recorded at the lower of the related loan balance or fair value less estimated selling costs at the time of acquisition. Fair value is determined based on an independent appraisal. Expenses related to holding the property are charged against earnings when incurred. Depreciation is not recorded on the other real estate owned (“OREO”) properties.
Allowance for Loan Losses
ALLOWANCE FOR LOAN LOSSES
The allowance for loan losses is established through provisions for loan losses that are charged to operations. Loans are charged against the allowance for loan losses when management believes that the principal is uncollectible. If, at a later time, amounts are recovered with respect to loans previously charged off, the recovered amount is credited to the allowance for loan losses.

The allowance is appropriate, in management’s judgment, to cover probable losses inherent in the loan portfolio as of June 30, 2016 and December 31, 2015. Management’s judgment takes into consideration general economic conditions, diversification and seasoning of the loan portfolio, historic loss experience, identified credit problems, delinquency levels and adequacy of collateral. Although management believes it has used the best information available to it in making such determinations, and that the present allowance for loan losses is adequate, future adjustments to the allowance may be necessary, and net income may be adversely affected if circumstances differ substantially from the assumptions used in determining the level of the allowance. In addition, as an integral part of their periodic examination, certain regulatory agencies review the adequacy of the Bank’s allowance for loan losses and may direct the Bank to make additions to the allowance based on their judgments about information available to them at the time of their examination.

The components of the allowance for loan losses represent estimates based upon Accounting Standards Codification (“ASC”) Topic 450, Contingencies, and ASC Topic 310, Receivables. ASC Topic 450 applies to homogeneous loan pools such as consumer installment, residential mortgages, consumer lines of credit and commercial loans that are not individually evaluated for impairment under ASC Topic 310. ASC Topic 310 is applied to commercial and consumer loans that are individually evaluated for impairment.

Under ASC Topic 310, a loan is impaired, based upon current information and events, in management’s opinion, when it is probable that the loan will not be repaid according to its original contractual terms, including both principal and interest, or if a loan is designated as a TDR. Management performs individual assessments of impaired loans to determine the existence of loss exposure based upon a discounted cash flows method or where a loan is collateral dependent, based upon the fair value of the collateral less estimated selling costs.

In estimating probable loan loss under ASC Topic 450 management considers numerous factors, including historical charge-offs and subsequent recoveries. Management also considers, but is not limited to, qualitative factors that influence our credit quality, such as delinquency and non-performing loan trends, changes in loan underwriting guidelines and credit policies, as well as the results of internal loan reviews. Finally, management considers the impact of changes in current local and regional economic conditions in the markets that we serve. Assessment of relevant economic factors indicates that some of the Company’s primary markets historically tend to lag the national economy, with local economies in our primary market areas also improving or weakening, as the case may be, but at a more measured rate than the national trends.

Management bases the computation of the allowance for loan losses under ASC Topic 450 on two factors: the primary factor and the secondary factor. The primary factor is based on the inherent risk identified by management within each of the Company’s three loan portfolios based on the historical loss experience of each loan portfolio and the loss emergence period. Management has developed a methodology that is applied to each of the three primary loan portfolios, consisting of commercial and industrial, commercial real estate and private banking. As the loan loss history, mix and risk ratings of each loan portfolio change, the primary factor adjusts accordingly. The allowance for loan losses related to the primary factor is based on our estimates as to probable losses for each loan portfolio. The secondary factor is intended to capture risks related to events and circumstances that management believes have an impact on the performance of the loan portfolio. Although this factor is more subjective in nature, the methodology focuses on internal and external trends in pre-specified categories (risk factors) and applies a quantitative percentage that drives the secondary factor. There are nine risk factors and each risk factor is assigned a reserve level based on management’s judgment as to the probable impact of each risk factor on each loan portfolio and is monitored on a quarterly basis. As the trend in any risk factor changes, a corresponding change occurs in the reserve associated with each respective risk factor, such that the secondary factor remains current to changes in each loan portfolio.

The Company also maintains a reserve for losses on unfunded commitments. This reserve is reflected as a component of other liabilities and, in management’s judgment, is sufficient to cover probable losses inherent in the commitments. Management tracks the level and trends in unused commitments and takes into consideration the same factors as those considered for purposes of the allowance for loan losses on outstanding loans.
Investment Management Fees
INVESTMENT MANAGEMENT FEES
The Company recognizes investment management fee revenue when the advisory services are performed. Fees are based on assets under management and are calculated pursuant to individual client contracts. Investment management fees are generally paid on a quarterly basis. In a limited number of cases, the Company may earn a performance fee based on investment performance achieved versus a stated benchmark. Performance fees are included in investment management fee revenue in the consolidated statements of income.

Investment management fees receivable represent amounts due for contractual investment management services provided to the Company’s clients, primarily institutional investors, mutual funds and individual investors. Management performs credit evaluations of its customers’ financial condition when it is deemed to be necessary, and does not require collateral. The Company provides an allowance for uncollectible accounts based on specifically identified receivables. Investment management fees receivable are considered delinquent when payment is not received within contractual terms and are charged off against the allowance for uncollectible accounts when management determines that recovery is unlikely and the Company ceases its collection efforts. There was no bad debt expense recorded for the six months ended June 30, 2016 and 2015, and there was no allowance for uncollectible accounts recorded as of June 30, 2016 and December 31, 2015.
Business Combinations
BUSINESS COMBINATIONS
The Company accounts for business combinations using the acquisition method of accounting. Under this method of accounting, the acquired company’s net assets are recorded at fair value as of the date of acquisition, and the results of operations of the acquired company are combined with our results from that date forward. Acquisition costs are expensed when incurred. The difference between the purchase price and the fair value of the net assets acquired (including identified intangibles) is recorded as goodwill. The change in the initial estimate of any contingent earnout amounts is reflected in the consolidated statements of income.
Goodwill and Other Intangible Assets
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Other intangible assets that have finite lives, such as trade name, certain client relationships and non-compete agreements are amortized over their estimated useful lives and subject to periodic impairment testing. These finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from four to twenty-five years. Goodwill and other intangible assets are subject to impairment testing at the reporting unit level, which is conducted at least annually.
Office Properties and Equipment
OFFICE PROPERTIES AND EQUIPMENT
Office properties and equipment are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the related assets, except for leasehold improvements, which are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Estimated useful lives are dependent upon the nature and condition of the asset and range from three to ten years. Repairs and maintenance are charged to expense as incurred, while improvements that extend the useful life are capitalized and depreciated to operating expense over the estimated remaining life of the asset. When the Bank receives an allowance for improvements to be made to one of its leased offices, we record the allowance as a deferred liability and recognize it as a reduction to rent expense over the life of the related lease.
Bank Owned Life Insurance
BANK OWNED LIFE INSURANCE
Bank owned life insurance (“BOLI”) policies on certain officers and employees are recorded at net cash surrender value on the consolidated statements of financial condition. Upon termination of the BOLI policy the Company receives the cash surrender value. BOLI benefits are payable to the Company upon death of the insured. Changes in net cash surrender value are recognized as non-interest income in the consolidated statements of income.
Deposits
DEPOSITS
Deposits are stated at principal outstanding and interest on deposits is accrued and charged to expense daily and is paid or credited in accordance with the terms of the respective accounts.
Borrowings
BORROWINGS
The Company records FHLB advances and subordinated notes payable at their principal amount net of debt issuance costs, per ASU 2015-03. Interest expense is recognized based on the coupon rate of the obligations. Costs associated with the acquisition of subordinated notes payable are amortized to interest expense over the expected term of the borrowing.
Earnings Per Common Share
EARNINGS PER COMMON SHARE
Basic earnings per common share (“EPS”) is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution of upon the exercise of stock options and vesting of restricted stock awards granted utilizing the treasury stock method.
Income Taxes
INCOME TAXES
The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities with regard to a change in tax rates is recognized in income in the period that includes the enactment date. Management assesses all available evidence to determine the amount of deferred tax assets that are more-likely-than-not to be realized. The available evidence used in connection with the assessments includes taxable income in prior periods, projected taxable income, potential tax planning strategies and projected reversals of deferred tax items. These assessments involve a degree of subjectivity and may undergo significant change. Changes to the evidence used in the assessments could have a material adverse effect on the Company’s results of operations in the period in which they occur. It is the Company’s policy to recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense in the consolidated statements of income.
Derivatives, Methods of Accounting, Hedging Derivatives [Policy Text Block]
DERIVATIVES AND HEDGING ACTIVITIES
The Company accounts for derivative instruments and hedging activities in accordance with FASB ASC Topic 815, Derivatives and Hedging. All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities, and appropriate documentation is maintained to support the final determination. All derivatives are recognized as either assets or liabilities on the consolidated statements of financial condition and measured at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. For derivatives designated as cash flow hedges, changes in fair value of the effective portion of the cash flow hedges are reported in accumulated other comprehensive income. When the cash flows associated with the hedged item are realized, the gain or loss included in accumulated other comprehensive income is recognized in the consolidated statement of income. The Company also has interest derivative positions that are not designated as hedging instruments. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings.
Fair Value Measurement
FAIR VALUE MEASUREMENT
Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in a principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date, using assumptions market participants would use when pricing an asset or liability. An orderly transaction assumes exposure to the market for a customary period for marketing activities prior to the measurement date and not a forced liquidation or distressed sale. Fair value measurement and disclosure guidance provides a three-level hierarchy that prioritizes the inputs of valuation techniques used to measure fair value into three broad categories:

•
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.
•
Level 2 – Observable inputs such as quoted prices for similar assets and liabilities in active markets, quoted prices for similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
•
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs.

Fair value may be recorded for certain assets and liabilities every reporting period on a recurring basis or under certain circumstances, on a non-recurring basis.
Stock-based Compensation
STOCK-BASED COMPENSATION
The Company accounts for its stock-based compensation awards based on estimated fair values, for all share-based awards, including stock options and restricted shares, made to employees and directors.

The Company accounts for stock-based employee compensation in accordance with the fair value recognition provisions of ASC Topic 718, Compensation – Stock Compensation. As a result, compensation cost for all share-based payments is based on the grant-date fair value estimated in accordance with ASC Topic 718. The value of the portion of the award that is ultimately expected to vest is included in stock-based employee compensation cost in the consolidated statements of income and recorded as a component of additional paid-in capital, for equity-based awards. Compensation expense for all awards is recognized on a straight-line basis over the requisite service period for the entire grant.
Accumulated Other Comprehensive Income (Loss)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized holding gains (losses) and the non-credit component of losses on the Company’s investment securities available-for-sale are included in accumulated other comprehensive income (loss), net of applicable income taxes. Also included in accumulated other comprehensive income (loss) is the remaining unamortized balance of the unrealized holding gains (non-credit losses), net of applicable income taxes, that existed on the transfer date for investment securities reclassified into the held-to-maturity category from the available-for-sale category.

Unrealized holding gains (losses) on the effective portion of the Company’s derivatives are included in accumulated other comprehensive income (loss), net of applicable income taxes, which will be reclassified to interest expense as interest payments are made on the Company’s debt.
Treasury Stock
TREASURY STOCK
The repurchase of the Company’s common stock is recorded at cost. At the time of reissuance, the treasury stock account is reduced using the average cost method. Gains and losses on the reissuance of common stock are recorded in additional paid-in capital, to the extent additional paid-in capital from any previous net gains on treasury share transactions exists. Any net deficiency is charged to retained earnings.
Recent Accounting Developments
RECENT ACCOUNTING DEVELOPMENTS
In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “Measurement of Credit Losses on Financial Instruments,” which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life. The changes are effective for public business entities that are SEC filers, for annual and interim periods in fiscal years beginning after December 15, 2019. All entities may early adopt the standard for annual and interim periods in fiscal years beginning after December 15, 2018. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic only); and (7) intrinsic value (nonpublic only). The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. Even if an entity early adopts the amendments after the first interim period, the adoption date is as of the beginning of the year for the issues adopted by the cumulative-effect and prospective methods. Any adjustments to previously reported interim periods of that fiscal year should be included in the year-to-date results. If those previously reported interim results appear in any future filings, they are reported on the revised basis. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In March 2016, the FASB issued ASU 2016-06, “Contingent Put and Call Options in Debt Instruments,” which clarifies that determining whether the economic characteristics of a put or call are clearly and closely related to its debt host requires only an assessment of the four-step decision sequence outlined in FASB ASC paragraph 815-15-25-24. Additionally, entities are not required to separately assess whether the contingency itself is clearly and closely related. ASU 2016-06 is effective for public business entities for interim and annual periods in fiscal years beginning after December 15, 2016. Early adoption is permitted in any interim period for which the entity’s financial statements have not been issued but would be retroactively applied to the beginning of the year that includes that interim period. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In March 2016, the FASB issued ASU 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships,” which clarifies that a change in one of the parties to a derivative contract (through novation) that is part of a hedge accounting relationship does not, by itself, require dedesignation of that relationship, as long as all other hedge accounting criteria continue to be met. This ASU is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which, among other things, requires lessees to recognize most leases on-balance sheet. This will increase their reported assets and liabilities - in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP. ASU 2016-02 supersedes Topic 840, Leases. ASU 2016-02 is effective for public business entities, certain not-for-profit entities, and certain employee benefit plans for annual and interim periods in fiscal years beginning after December 15, 2018. This ASU mandates a modified retrospective transition method for all entities. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which will significantly change the income statement impact of equity investments, and the recognition of changes in fair value of financial liabilities when the fair value option is elected. The ASU is effective for public business entities for interim and annual periods in fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments.” This ASU eliminated the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. The ASU was effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. The adoption of ASU 2015-16 did not have a material impact on the Company’s consolidated financial statements.

In June 2015, the FASB issued ASU 2015-10, “Technical Correction and Improvements,” which, among other things, corrects the initial codification of FASB Statement No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (as Amended by FASB Statement No. 166, Accounting for Transfers of Financial Assets).” The initial codification inadvertently added the word “public” to paragraph 860-10-50-7, which was not in the original guidance. The ASU also clarifies that the requirement relates to “involvement by others”. This amendment in ASU 2015-10 was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU 2015-10 did not have a material impact on the Company’s consolidated financial statements.

In May 2015, the FASB issued ASU 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” This ASU eliminated the requirement to categorize investments in the fair value hierarchy if their fair value is measured at net asset value (NAV) per share (or its equivalent) using the practical expedient in the FASB’s fair value measurement guidance. Reporting entities were required to adopt the ASU retrospectively. The effective date for public business entities was fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The adoption of ASU 2015-07 did not have a material impact on the Company’s consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs were not affected by the amendments in this update. For public business entities, the amendments in this update were effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. An entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented was adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity was required to comply with the applicable disclosures for a change in an accounting principle. These disclosures included the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that had been retrospectively adjusted, and the effect of the change on the financial statement line items (that is, debt issuance cost asset and the debt liability). The adoption of ASU 2015-03 did not have a material impact on the Company’s consolidated financial statements.

In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” This ASU changed the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (VIE), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminated the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. The new guidance excludes money market funds that are required to comply with Rule 2a-7 of the Investment Company Act of 1940 and similar entities from the U.S. GAAP consolidation requirements. The new consolidation guidance was effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2015. At the effective date, all previous consolidation analyses that the guidance affects was required to be reconsidered. This included the consolidation analyses for all VIEs and for all limited partnerships and similar entities that previously were consolidated by the general partner even though the entities were not VIEs. The adoption of ASU 2015-02 did not have a material impact on the Company’s consolidated financial statements.

In January 2015, the FASB issued ASU 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” This ASU eliminated the concept of extraordinary items from U.S. GAAP as part of its simplification initiative. The ASU did not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence. The ASU was effective for interim and annual periods in fiscal years beginning after December 15, 2015. The ASU allowed prospective or retrospective application. The effective date was the same for both public entities and all other entities. The adoption of ASU 2015-01 did not have a material impact on the Company’s consolidated financial statements.

In November 2014, the FASB issued ASU 2014-16, “Derivatives and Hedging (Topic 815),” required an entity to determine the nature of the host contract by considering the economic characteristics and risks of the entire hybrid financial instrument issued in the form of a share, including the embedded derivative feature that is being evaluated for separate accounting from the host contract when evaluating whether the host contract is more akin to debt or equity. In evaluating the stated and implied substantive terms and features, the existence or omission of any single term or feature does not necessarily determine the economic characteristics and risks of the host contract. Although an individual term or feature may weigh more heavily in the evaluation on the basis of facts and circumstances, an entity should use judgment based on an evaluation of all the relevant terms and features. This ASU was effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The effects of initially adopting the amendments should be applied on a modified retrospective basis to existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year for which the amendment is effective. Retrospective application was permitted to all relevant prior periods. The adoption of ASU 2014-16 did not have a material impact on the Company’s consolidated financial statements.

In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU describes how an entity’s management should assess whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management should consider both quantitative and qualitative factors in making its assessment. If after considering management’s plans, substantial doubt about an entity’s going concern is alleviated, an entity shall disclose information in the footnotes that enables the users of the financial statements to understand the events that raised the going concern and how management’s plan alleviated this concern. If after considering management’s plans, substantial doubt about an entity’s going concern is not alleviated, the entity shall disclose in the footnotes indicating that a substantial doubt about the entity’s going concern exists within one year of the date of the issued financial statements. Additionally, the entity shall disclose the events that led to this going concern and management’s plans to mitigate them. The new standard applies to all entities for the first annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early application is permitted. The adoption of ASU 2014-15 is not expected to have a material impact on the Company’s consolidated financial statements.

In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performing Target Could Be Achieved after the Requisite Service Period.” This ASU requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. A reporting entity should apply FASB ASC Topic 718, Compensation-Stock Compensation, to awards with performance conditions that affect vesting. This update was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, for all entities. ASU 2014-12 may be adopted either prospectively for share-based payment awards granted or modified on or after the effective date, or retrospectively, using a modified retrospective approach. The modified retrospective approach would apply to share-based payment awards outstanding as of the beginning of the earliest annual period presented in the financial statements on adoption, and to all new or modified awards thereafter. The adoption of ASU 2014-12 did not have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” This ASU implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of this update is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 establishes a five-step model that entities must follow to recognize revenue and removes inconsistencies and weaknesses in existing guidance. Per ASU 2015-14, this update is effective for annual periods and interim periods within fiscal years beginning after December 15, 2017, for public business entities, certain employee benefit plans, and certain not-for-profit entities applying U.S. GAAP. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.
Reclassification
RECLASSIFICATION
Certain items previously reported have been reclassified to conform with the current year’s reporting presentation and are considered immaterial.
v3.5.0.2
Business Combinations (Tables)
 6 Months Ended
Jun. 30, 2016
Business Combinations [Abstract]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
The following table summarizes total consideration paid, assets acquired and liabilities assumed for the TKG acquisition on April 29, 2016:
(Dollars in thousands)
TKG Acquisition
Consideration paid:
 
Cash
$
15,000

Estimated earnout
3,687

Fair value of total consideration
$
18,687

 
 
Fair value of assets acquired:
 
Cash and cash equivalents
$
905

Investment management fees receivable
912

Office properties and equipment
20

Other assets
106

Total assets acquired
1,943

Fair value of liabilities assumed:
 
Other liabilities
1,402

Total liabilities assumed
1,402

Fair value net identifiable assets acquired
541

Intangible assets acquired
13,585

Goodwill
4,561

Total net assets purchased
$
18,687
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]
Goodwill is not amortized for book purposes, but is deductible for tax purposes. The following table shows the amount of other intangible assets acquired through the TKG acquisition on April 29, 2016, by class and estimated useful life.
(Dollars in thousands)
Gross Amount
Estimated
Useful Life
(months)
Trade name
$
2,850

300
Client Relationships:
 
 
Sub-advisory client list
330

132
Separate managed accounts client list
715

168
Non-compete agreements
390

48
Total finite-lived intangibles
$
4,285

242
Client Relationships:
 
 
Mutual fund client list
9,300

Indefinite life
Total intangibles assets
$
13,585

 
Business Acquisition, Pro Forma Information [Table Text Block]
The following table presents unaudited pro forma financial information which combines the historical consolidated statements of income of the Company and The Killen Group, Inc. to give effect to the acquisition as if it had occurred on January 1, 2015, for the periods indicated.
 
Pro Forma
 
Six Months Ended June 30,
(Dollars in thousands)
2016
2015
Total revenue
$
60,628

$
59,724

Net income
$
13,359

$
11,163

 
 
 
Earnings per common share:
 
 
Basic
$
0.48

$
0.40

Diluted
$
0.47

$
0.40
v3.5.0.2
Investment Securities (Tables)
 6 Months Ended
Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]  
Schedule of investment securities available-for-sale
Investment securities available-for-sale and held-to-maturity are comprised of the following:
 
June 30, 2016
(Dollars in thousands)
Amortized
Cost
Gross Unrealized
Appreciation
Gross Unrealized
Depreciation
Estimated
Fair Value
Investment securities available-for-sale:
 
 
 
 
Corporate bonds
$
62,820

$
652

$
20

$
63,452

Trust preferred securities
17,645

—

1,341

16,304

Non-agency mortgage-backed securities
5,750

—

4

5,746

Non-agency collateralized loan obligations
11,591

—

167

11,424

Agency collateralized mortgage obligations
47,130

54

322

46,862

Agency mortgage-backed securities
26,988

327

19

27,296

Agency debentures
4,739

—

89

4,650

Equity securities
8,497

—

420

8,077

Total investment securities available-for-sale
185,160

1,033

2,382

183,811

Investment securities held-to-maturity:
 
 
 
 
Corporate bonds
19,446

507

53

19,900

Municipal bonds
25,328

703

—

26,031

Total investment securities held-to-maturity
44,774

1,210

53

45,931

Total
$
229,934

$
2,243

$
2,435

$
229,742


 
December 31, 2015
(Dollars in thousands)
Amortized
Cost
Gross Unrealized
Appreciation
Gross Unrealized
Depreciation
Estimated
Fair Value
Investment securities available-for-sale:
 
 
 
 
Corporate bonds
$
43,952

$
18

$
237

$
43,733

Trust preferred securities
17,579

—

978

16,601

Non-agency mortgage-backed securities
5,756

—

13

5,743

Non-agency collateralized loan obligations
11,843

—

132

11,711

Agency collateralized mortgage obligations
49,544

92

265

49,371

Agency mortgage-backed securities
28,586

270

187

28,669

Agency debentures
4,719

13

—

4,732

Equity securities
8,358

—

599

7,759

Total investment securities available-for-sale
170,337

393

2,411

168,319

Investment securities held-to-maturity:
 
 
 
 
Corporate bonds
19,448

498

84

19,862

Agency debentures
2,453

19

—

2,472

Municipal bonds
25,389

377

1

25,765

Total investment securities held-to-maturity
47,290

894

85

48,099

Total
$
217,627

$
1,287

$
2,496

$
216,418
Schedule of contractual maturities of debt securities available -for-sale
As of June 30, 2016, the contractual maturities of the debt securities are:
 
June 30, 2016
 
Available-for-Sale
 
Held-to-Maturity
(Dollars in thousands)
Amortized
Cost
Estimated
Fair Value
 
Amortized
Cost
Estimated
Fair Value
Due in one year or less
$
21,954

$
21,978

 
$
—

$
—

Due from one to five years
42,138

42,740

 
13,569

14,119

Due from five to ten years
9,729

9,564

 
29,778

30,303

Due after ten years
102,842

101,452

 
1,427

1,509

Total debt securities
$
176,663

$
175,734

 
$
44,774

$
45,931
Schedule of fair value and gross unrealized losses on investment securities available-for-sale
The following tables show the fair value and gross unrealized losses on temporarily impaired investment securities available-for-sale and held-to-maturity, by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of June 30, 2016 and December 31, 2015, respectively:
 
June 30, 2016
 
Less than 12 Months
 
12 Months or More
 
Total
(Dollars in thousands)
Fair value
Unrealized losses
 
Fair value
Unrealized losses
 
Fair value
Unrealized losses
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
Corporate bonds
$
—

$
—

 
$
7,138

$
20

 
$
7,138

$
20

Trust preferred securities
8,041

533

 
8,263

808

 
16,304

1,341

Non-agency mortgage-backed securities
5,746

4

 
—

—

 
5,746

4

Non-agency collateralized loan obligations
1,554

44

 
9,870

123

 
11,424

167

Agency collateralized mortgage obligations
29,992

204

 
11,319

118

 
41,311

322

Agency mortgage-backed securities
1,693

19

 
—

—

 
1,693

19

Agency debentures
4,650

89

 
—

—

 
4,650

89

Equity securities
—

—

 
8,077

420

 
8,077

420

Total investment securities available-for-sale
51,676

893

 
44,667

1,489

 
96,343

2,382

Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
Corporate bonds
5,448

53

 
—

—

 
5,448

53

Total investment securities held-to-maturity
5,448

53

 
—

—

 
5,448

53

Total temporarily impaired securities
$
57,124

$
946

 
$
44,667

$
1,489

 
$
101,791

$
2,435


 
December 31, 2015
 
Less than 12 Months
 
12 Months or More
 
Total
(Dollars in thousands)
Fair value
Unrealized losses
 
Fair value
Unrealized losses
 
Fair value
Unrealized losses
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
Corporate bonds
$
23,582

$
155

 
$
6,460

$
82

 
$
30,042

$
237

Trust preferred securities
8,076

471

 
8,526

507

 
16,602

978

Non-agency mortgage-backed securities
—

—

 
5,743

13

 
5,743

13

Non-agency collateralized loan obligations
9,859

132

 
—

—

 
9,859

132

Agency collateralized mortgage obligations
25,566

151

 
11,836

114

 
37,402

265

Agency mortgage-backed securities
1,469

15

 
10,811

172

 
12,280

187

Equity securities
—

—

 
7,759

599

 
7,759

599

Total investment securities available-for-sale
68,552

924

 
51,135

1,487

 
119,687

2,411

Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
Corporate bonds
9,863

84

 
—

—

 
9,863

84

Municipal bonds
571

1

 
—

—

 
571

1

Total investment securities held-to-maturity
10,434

85

 
—

—

 
10,434

85

Total temporarily impaired securities
$
78,986

$
1,009

 
$
51,135

$
1,487

 
$
130,121

$
2,496
v3.5.0.2
Loans (Tables)
 6 Months Ended
Jun. 30, 2016
Receivables [Abstract]  
Schedule of loans receivable
Loans held-for-investment were comprised of the following:
 
June 30, 2016
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Loans held-for-investment, before deferred fees
$
573,952

$
990,740

$
1,432,489

$
2,997,181

Deferred loan (fees) costs
(219
)
(2,709
)
3,056

128

Loans held-for-investment, net of deferred fees
573,733

988,031

1,435,545

2,997,309

Allowance for loan losses
(10,841
)
(4,872
)
(1,502
)
(17,215
)
Loans held-for-investment, net
$
562,892

$
983,159

$
1,434,043

$
2,980,094


 
December 31, 2015
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Loans held-for-investment, before deferred fees
$
634,857

$
864,863

$
1,341,988

$
2,841,708

Deferred loan (fees) costs
(625
)
(2,675
)
2,876

(424
)
Loans held-for-investment, net of deferred fees
634,232

862,188

1,344,864

2,841,284

Allowance for loan losses
(11,064
)
(5,344
)
(1,566
)
(17,974
)
Loans held-for-investment, net
$
623,168

$
856,844

$
1,343,298

$
2,823,310
v3.5.0.2
Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2016
Allowance for Loan Losses [Abstract]  
Investment in loans by credit quality indicator
The following tables present the recorded investment in loans by credit quality indicator:
 
June 30, 2016
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Pass
$
520,589

$
985,119

$
1,434,954

$
2,940,662

Special mention
24,465

—

—

24,465

Substandard
28,679

2,912

591

32,182

Loans held-for-investment
$
573,733

$
988,031

$
1,435,545

$
2,997,309


 
December 31, 2015
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Pass
$
585,561

$
858,396

$
1,342,813

$
2,786,770

Special mention
31,863

880

—

32,743

Substandard
15,835

2,912

2,051

20,798

Doubtful
973

—

—

973

Loans held-for-investment
$
634,232

$
862,188

$
1,344,864

$
2,841,284
Change in allowance for loan losses
Changes in the allowance for loan losses were as follows for the six months ended June 30, 2016 and 2015:
 
Six Months Ended June 30, 2016
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Balance, beginning of period
$
11,064

$
5,344

$
1,566

$
17,974

Provision (credit) for loan losses
738

(472
)
(64
)
202

Charge-offs
(1,543
)
—

—

(1,543
)
Recoveries
582

—

—

582

Balance, end of period
$
10,841

$
4,872

$
1,502

$
17,215


 
Six Months Ended June 30, 2015
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Balance, beginning of period
$
13,501

$
4,755

$
2,017

$
20,273

Provision for loan losses
1,109

(6
)
7

1,110

Charge-offs
—

—

—

—

Recoveries
11

—

13

24

Balance, end of period
$
14,621

$
4,749

$
2,037

$
21,407

Changes in the allowance for loan losses were as follows for the three months ended June 30, 2016 and 2015:
 
Three Months Ended June 30, 2016
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Balance, beginning of period
$
11,464

$
5,666

$
1,416

$
18,546

Provision (credit) for loan losses
788

(794
)
86

80

Charge-offs
(1,543
)
—

—

(1,543
)
Recoveries
132

—

—

132

Balance, end of period
$
10,841

$
4,872

$
1,502

$
17,215


 
Three Months Ended June 30, 2015
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Balance, beginning of period
$
14,191

$
4,973

$
2,041

$
21,205

Provision (credit) for loan losses
426

(224
)
(17
)
185

Charge-offs
—

—

—

—

Recoveries
4

—

13

17

Balance, end of period
$
14,621

$
4,749

$
2,037

$
21,407
Past due loans segregated by class of loan
The following tables present the age analysis of past due loans segregated by class of loan:
 
June 30, 2016
(Dollars in thousands)
30-59 Days Past Due
60-89 Days Past Due
Loans Past Due 90 Days or More
Total Past Due
Current
Total
Commercial and industrial
$
—

$
—

$
—

$
—

$
573,733

$
573,733

Commercial real estate
—

—

2,912

2,912

985,119

988,031

Private banking
—

—

224

224

1,435,321

1,435,545

Loans held-for-investment
$
—

$
—

$
3,136

$
3,136

$
2,994,173

$
2,997,309


 
December 31, 2015
(Dollars in thousands)
30-59 Days Past Due
60-89 Days Past Due
Loans Past Due 90 Days or More
Total Past Due
Current
Total
Commercial and industrial
$
—

$
—

$
976

$
976

$
633,256

$
634,232

Commercial real estate
—

—

2,912

2,912

859,276

862,188

Private banking
—

—

1,431

1,431

1,343,433

1,344,864

Loans held-for-investment
$
—

$
—

$
5,319

$
5,319

$
2,835,965

$
2,841,284
Investment in loans considered to be impaired
The following tables present the Company’s investment in loans considered to be impaired and related information on those impaired loans:
 
As of and for the Six Months Ended June 30, 2016
(Dollars in thousands)
Recorded Investment
Unpaid Principal Balance
Related Allowance
Average Recorded Investment
Interest Income Recognized
With a related allowance recorded:
 
 
 
 
 
Commercial and industrial
$
10,397

$
10,703

$
3,650

$
8,262

$
—

Commercial real estate
—

—

—

—

—

Private banking
580

710

580

641

—

Total with a related allowance recorded
10,977

11,413

4,230

8,903

—

Without a related allowance recorded:
 
 
 
 
 
Commercial and industrial
5,733

11,202

—

7,118

13

Commercial real estate
2,912

9,067

—

2,912

—

Private banking
—

—

—

—

—

Total without a related allowance recorded
8,645

20,269

—

10,030

13

Total:
 
 
 
 
 
Commercial and industrial
16,130

21,905

3,650

15,380

13

Commercial real estate
2,912

9,067

—

2,912

—

Private banking
580

710

580

641

—

Total
$
19,622

$
31,682

$
4,230

$
18,933

$
13


 
As of and for the Twelve Months Ended December 31, 2015
(Dollars in thousands)
Recorded Investment
Unpaid Principal Balance
Related Allowance
Average Recorded Investment
Interest Income Recognized
With a related allowance recorded:
 
 
 
 
 
Commercial and industrial
$
11,797

$
19,204

$
3,800

$
15,331

$
—

Commercial real estate
—

—

—

—

—

Private banking
745

864

745

824

—

Total with a related allowance recorded
12,542

20,068

4,545

16,155

—

Without a related allowance recorded:
 
 
 
 
 
Commercial and industrial
513

1,789

—

838

29

Commercial real estate
2,912

9,067

—

3,108

—

Private banking
1,203

1,448

—

1,202

—

Total without a related allowance recorded
4,628

12,304

—

5,148

29

Total:
 
 
 
 
 
Commercial and industrial
12,310

20,993

3,800

16,169

29

Commercial real estate
2,912

9,067

—

3,108

—

Private banking
1,948

2,312

745

2,026

—

Total
$
17,170

$
32,372

$
4,545

$
21,303

$
29
Allowance for credit losses and investment in loans by class
The following tables present the allowance for loan losses and recorded investment in loans by class:
 
June 30, 2016
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Allowance for loan losses:
 
 
 
 
Individually evaluated for impairment
$
3,650

$
—

$
580

$
4,230

Collectively evaluated for impairment
7,191

4,872

922

12,985

Total allowance for loan losses
$
10,841

$
4,872

$
1,502

$
17,215

Loans held-for-investment:
 
 
 
 
Individually evaluated for impairment
$
16,130

$
2,912

$
580

$
19,622

Collectively evaluated for impairment
557,603

985,119

1,434,965

2,977,687

Loans held-for-investment
$
573,733

$
988,031

$
1,435,545

$
2,997,309


 
December 31, 2015
(Dollars in thousands)
Commercial
and
Industrial
Commercial
Real Estate
Private
Banking
Total
Allowance for loan losses:
 
 
 
 
Individually evaluated for impairment
$
3,800

$
—

$
745

$
4,545

Collectively evaluated for impairment
7,264

5,344

821

13,429

Total allowance for loan losses
$
11,064

$
5,344

$
1,566

$
17,974

Loans held-for-investment:
 
 
 
 
Individually evaluated for impairment
$
12,310

$
2,912

$
1,948

$
17,170

Collectively evaluated for impairment
621,922

859,276

1,342,916

2,824,114

Loans held-for-investment
$
634,232

$
862,188

$
1,344,864

$
2,841,284
Loans classified as troubled debt restructuring
The following table provides additional information on the Company’s loans designated as troubled debt restructurings:
(Dollars in thousands)
June 30,
2016
December 31,
2015
Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring:
 
 
Performing loans accruing interest
$
474

$
510

Non-accrual loans
8,923

12,894

Total troubled debt restructurings
$
9,397

$
13,404
Financial effects of modifications

The financial effects of modifications made to loans designated as TDRs during three months ended June 30, 2015, were as follows:
 
Three Months Ended June 30, 2015
(Dollars in thousands)
Count
Recorded Investment at the time of Modification
Current Recorded Investment
Allowance for Loan Losses at the time of Modification
Current Allowance for Loan Losses
Commercial and industrial:
 
 
 
 
 
Change in interest terms
1
$
4,064

$
4,021

$
400

$
—

Total
1
$
4,064

$
4,021

$
400

$
—


The financial effects of modifications made to loans designated as TDRs during six months ended June 30, 2015, were as follows:
 
Six Months Ended June 30, 2015
(Dollars in thousands)
Count
Recorded Investment at the time of Modification
Current Recorded Investment
Allowance for Loan Losses at the time of Modification
Current Allowance for Loan Losses
Commercial and industrial:
 
 
 
 
 
Change in interest terms
1
$
4,064

$
4,021

$
400

$
—

Extended term and deferred principal
1
433

—

433

—

Deferred principal
2
6,849

4,495

1,500

3,353

Total
4
$
11,346

$
8,516

$
2,333

$
3,353
v3.5.0.2
Goodwill and Other Intangibles Assets (Tables)
 6 Months Ended
Jun. 30, 2016
Goodwill [Abstract]  
Schedule of Goodwill [Table Text Block]
The following table presents the change in goodwill for the six months ended June 30, 2016 and 2015:
 
Six Months Ended June 30,
(Dollars in thousands)
2016
2015
Balance, beginning of period
$
34,163

$
34,163

Additions
4,561

—

Balance, end of period
$
38,724

$
34,163
Schedule of Finite-Lived Intangible Assets [Table Text Block]
The following table presents the change in intangible assets for the six months ended June 30, 2016 and 2015:
 
Six Months Ended June 30,
(Dollars in thousands)
2016
2015
Balance, beginning of period
$
16,653

$
18,211

Additions
13,585

—

Amortization
(828
)
(779
)
Balance, end of period
$
29,410

$
17,432



The following table presents the gross amount of intangible assets and total accumulated amortization by class:
 
June 30, 2016
 
December 31, 2015
(Dollars in thousands)
Gross Amount
Accumulated Amortization
Net Carrying Amount
 
Gross Amount
Accumulated Amortization
Net Carrying Amount
Trade name
$
4,040

$
(158
)
$
3,882

 
$
1,190

$
(109
)
$
1,081

Client Relationships:
 
 
 
 
 
 
 
Sub-advisory client list
11,530

(1,941
)
9,589

 
11,200

(1,521
)
9,679

Separate managed accounts client list
1,810

(264
)
1,546

 
1,095

(201
)
894

Other institutional client list
5,950

(1,262
)
4,688

 
5,950

(992
)
4,958

Non-compete agreements
465

(60
)
405

 
75

(34
)
41

Total finite-lived intangibles
$
23,795

$
(3,685
)
$
20,110

 
$
19,510

$
(2,857
)
$
16,653

Client Relationships:
 
 
 
 
 
 
 
Mutual fund client list (indefinite-lived)
9,300

—

9,300

 
—

—

—

Total intangibles assets
$
33,095

$
(3,685
)
$
29,410

 
$
19,510

$
(2,857
)
$
16,653
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]
The following is a summary of the expected amortization expense for finite-lived intangibles assets, assuming no future additions, for each of the five years following June 30, 2016:
(Dollars in thousands)
Amount
June 30,
 
2017
$
1,851

2018
1,845

2019
1,832

2020
1,816

2021
1,734

Thereafter
11,032

Total finite-lived intangibles
$
20,110

Indefinite-lived intangibles
9,300

Total intangibles assets
$
29,410
v3.5.0.2
Deposits (Tables)
 6 Months Ended
Jun. 30, 2016
Deposits [Abstract]  
Schedule of deposits
 
Interest Rate
Range as of
 
Weighted Average
Interest Rate as of
 
Balance as of
(Dollars in thousands)
June 30,
2016
 
June 30,
2016
December 31,
2015
 
June 30,
2016
December 31,
2015
Demand and savings accounts:
 
 
 
 
 
 
 
Noninterest-bearing checking accounts
—

 
—

—

 
$
160,538

$
159,859

Interest-bearing checking accounts
0.05 to 0.60%

 
0.49
%
0.42
%
 
181,318

136,037

Money market deposit accounts
0.05 to 1.50%

 
0.70
%
0.50
%
 
1,657,272

1,464,279

Total demand and savings accounts
 
 
 
 
 
1,999,128

1,760,175

Time deposits
0.05 to 1.44%

 
0.87
%
0.78
%
 
889,064

929,669

Total deposit balance
 
 
 
 
 
$
2,888,192

$
2,689,844

Average rate paid on interest-bearing accounts
 
 
0.74
%
0.60
%
 
 
 
Schedule of maturities of time deposits
The contractual maturity of time deposits, including brokered deposits, is as follows:
(Dollars in thousands)
June 30,
2016
December 31,
2015
12 months or less
$
708,279

$
645,004

12 months to 24 months
156,101

219,333

24 months to 36 months
24,684

65,332

36 months to 48 months
—

—

48 months to 60 months
—

—

Over 60 months
—

—

Total
$
889,064

$
929,669
Schedule of interest expense on deposits by type of deposit
Interest expense on deposits is as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(Dollars in thousands)
2016
2015
 
2016
2015
Interest-bearing checking accounts
$
154

$
99

 
$
307

$
219

Money market deposit accounts
2,622

1,336

 
4,829

2,556

Time deposits
1,827

1,741

 
3,605

3,293

Total interest expense on deposits
$
4,603

$
3,176

 
$
8,741

$
6,068
v3.5.0.2
Borrowings (Tables)
 6 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
Schedule of borrowings
As of June 30, 2016 and December 31, 2015, borrowings were comprised of the following:
 
June 30, 2016
 
December 31, 2015
(Dollars in thousands)
Interest Rate
Ending Balance
Maturity Date
 
Interest Rate
Ending Balance
Maturity Date
FHLB borrowings:
 
 
 
 
 
 
 
Issued 6/30/2016
0.51
%
$
75,000

7/1/2016
 

$
—


Issued 6/29/2016
0.66
%
100,000

9/29/2016
 

—


Issued 12/31/2015

—


 
0.51
%
170,000

1/4/2016
Issued 7/29/2015
0.61
%
25,000

8/4/2016
 
0.61
%
25,000

8/4/2016
Issued 7/29/2015
0.72
%
25,000

11/3/2016
 
0.72
%
25,000

11/3/2016
Subordinated notes payable (net of debt issuance costs of $591 and $692)
5.75
%
34,409

7/1/2019
 
5.75
%
34,308

7/1/2019
Total borrowings, net
 
$
259,409

 
 
 
$
254,308

 
v3.5.0.2
Regulatory Capital (Tables)
 6 Months Ended
Jun. 30, 2016
Regulatory Capital Requirements [Abstract]  
Schedule of compliance with regulatory capital requirements under banking regulations
The following tables set forth certain information concerning the Company’s and the Bank’s regulatory capital as of June 30, 2016 and December 31, 2015:
 
June 30, 2016
 
Actual
 
For Capital Adequacy Purposes
 
To be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)
Amount
Ratio
 
Amount
Ratio
 
Amount
Ratio
Total risk-based capital ratio
 
 
 
 
 
 
 
 
Company
$
321,170

12.76
%
 
$
201,322

8.00
%
 
 N/A

N/A

Bank
$
304,080

12.24
%
 
$
198,774

8.00
%
 
$
248,468

10.00
%
Tier 1 risk-based capital ratio
 
 
 
 
 
 
 
 
Company
$
283,157

11.25
%
 
$
150,992

6.00
%
 
 N/A

N/A

Bank
$
286,628

11.54
%
 
$
149,081

6.00
%
 
$
198,774

8.00
%
Common equity tier 1 risk-based capital ratio
 
 
 
 
 
 
 
 
Company
$
283,157

11.25
%
 
$
113,244

4.50
%
 
 N/A

N/A

Bank
$
286,628

11.54
%
 
$
111,810

4.50
%
 
$
161,504

6.50
%
Tier 1 leverage ratio
 
 
 
 
 
 
 
 
Company
$
283,157

8.41
%
 
$
134,737

4.00
%
 
 N/A

N/A

Bank
$
286,628

8.57
%
 
$
133,752

4.00
%
 
$
167,190

5.00
%

 
December 31, 2015
 
Actual
 
For Capital Adequacy Purposes
 
To be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)
Amount
Ratio
 
Amount
Ratio
 
Amount
Ratio
Total risk-based capital ratio
 
 
 
 
 
 
 
 
Company
$
326,378

13.88
%
 
$
188,176

8.00
%
 
 N/A

N/A

Bank
$
310,624

13.35
%
 
$
186,077

8.00
%
 
$
232,596

10.00
%
Tier 1 risk-based capital ratio
 
 
 
 
 
 
 
 
Company
$
287,072

12.20
%
 
$
141,132

6.00
%
 
 N/A

N/A

Bank
$
292,234

12.56
%
 
$
139,558

6.00
%
 
$
186,077

8.00
%
Common equity tier 1 risk-based capital ratio
 
 
 
 
 
 
 
 
Company
$
287,072

12.20
%
 
$
105,849

4.50
%
 
 N/A

N/A

Bank
$
292,234

12.56
%
 
$
104,668

4.50
%
 
$
151,187

6.50
%
Tier 1 leverage ratio
 
 
 
 
 
 
 
 
Company
$
287,072

9.05
%
 
$
126,932

4.00
%
 
 N/A

N/A

Bank
$
292,234

9.29
%
 
$
125,870

4.00
%
 
$
157,338

5.00
%
v3.5.0.2
Stock Transactions (Tables)
 6 Months Ended
Jun. 30, 2016
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]  
Schedule of common shares, activity
The tables below show the changes in the Company’s common shares outstanding during the periods indicated.
 
Number of
Common Shares
Outstanding
Balance, December 31, 2014
28,060,888

Issuance of restricted common stock
255,916

Forfeitures of restricted common stock
—

Exercise of stock options
5,000

Purchase of treasury stock
(321,109
)
Balance, June 30, 2015
28,000,695

 
 
Balance, December 31, 2015
28,056,195

Issuance of restricted common stock
394,309

Forfeitures of restricted common stock
(4,000
)
Exercise of stock options
22,500

Purchase of treasury stock
(257,722
)
Balance, June 30, 2016
28,211,282
v3.5.0.2
Earnings Per Common Share (Tables)
 6 Months Ended
Jun. 30, 2016
Earnings Per Share [Abstract]  
Schedule of earnings per share, basic and diluted
The computation of basic and diluted earnings per common share for the periods presented is as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(Dollars in thousands, except per share data)
2016
2015
 
2016
2015
 
 
 
 
 
 
Net income available to common shareholders
$
6,773

$
5,728

 
$
12,616

$
10,784

Weighted average common shares outstanding:
 
 
 
 
 
Basic
27,549,475

27,718,226

 
27,601,331

27,804,599

Non-vested restricted stock - dilutive
180,317

48,933

 
147,823

26,780

Stock options - dilutive
495,612

416,889

 
472,728

345,131

Diluted
28,225,404

28,184,048

 
28,221,882

28,176,510

 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
Basic
$
0.25

$
0.21

 
$
0.46

$
0.39

Diluted
$
0.24

$
0.20

 
$
0.45

$
0.38
Schedule of antidilutive securities excluded from computation of earnings per share
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
2015
 
2016
2015
Anti-dilutive shares (1)
421,661

707,893

 
627,893

973,393

(1) 
Included stock options and non-vested restricted stock not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive.
v3.5.0.2
Derivatives and Hedging Activity (Tables)
 6 Months Ended
Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of derivative instruments in statement of financial position, fair value
The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated statements of financial condition as of June 30, 2016 and December 31, 2015:
 
Asset Derivatives
 
Liability Derivatives
 
as of June 30, 2016
 
as of June 30, 2016
(Dollars in thousands)
Balance Sheet Location
Fair Value
 
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments:
 
 
 
 
 
Interest rate products
Other assets
$
—

 
Other liabilities
$
221

Derivatives not designated as hedging instruments:
 
 
 
 
 
Interest rate products
Other assets
$
21,292

 
Other liabilities
$
22,881


 
Asset Derivatives
 
Liability Derivatives
 
as of December 31, 2015
 
as of December 31, 2015
(Dollars in thousands)
Balance Sheet Location
Fair Value
 
Balance Sheet Location
Fair Value
Derivatives designated as hedging instruments:
 
 
 
 
 
Interest rate products
Other assets
$
—

 
Other liabilities
$
229

Derivatives not designated as hedging instruments:
 
 
 
 
 
Interest rate products
Other assets
$
8,662

 
Other liabilities
$
9,363
Schedule of derivative instruments, gain (loss) in statement of financial performance
The tables below present the effect of the Company’s derivative financial instruments in the consolidated statements of income for the periods presented:
 
 
 
Three Months Ended June 30,
(Dollars in thousands)
 
 
2016
2015
Derivatives designated as hedging instruments:
Location of Gain (Loss) Recognized in Income on Derivative
 
Amount of Gain (Loss) Recognized in Income on Derivative
Interest rate products
Interest income
 
$
(23
)
$
(76
)
 
Non-interest income
 
1

2

Total
 
 
$
(22
)
$
(74
)
 
 
 
 
 
Derivatives not designated as hedging instruments:
Location of Gain (Loss) Recognized in Income on Derivative
 
Amount of Gain (Loss) Recognized in Income on Derivative
Interest rate products
Non-interest income
 
$
(385
)
$
261

Total
 
 
$
(385
)
$
261


 
 
 
Six Months Ended June 30,
(Dollars in thousands)
 
 
2016
2015
Derivatives designated as hedging instruments:
Location of Gain (Loss) Recognized in Income on Derivative
 
Amount of Gain (Loss) Recognized in Income on Derivative
Interest rate products
Interest income
 
$
(47
)
$
(158
)
 
Non-interest income
 
2

2

Total
 
 
$
(45
)
$
(156
)
 
 
 
 
 
Derivatives not designated as hedging instruments:
Location of Gain (Loss) Recognized in Income on Derivative
 
Amount of Gain (Loss) Recognized in Income on Derivative
Interest rate products
Non-interest income
 
$
(840
)
$
44

Total
 
 
$
(840
)
$
44
v3.5.0.2
Disclosures About Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2016
Fair Value Disclosures [Abstract]  
Schedule of fair value, assets and liabilities measured on recurring basis
The following tables represent assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015:
 
June 30, 2016
(Dollars in thousands)
Level 1
Level 2
Level 3
Total Assets /
Liabilities
at Fair Value
Financial assets:
 
 
 
 
Investment securities available-for-sale:
 
 
 
 
Corporate bonds
$
—

$
63,452

$
—

$
63,452

Trust preferred securities
—

16,304

—

16,304

Non-agency mortgage-backed securities
—

5,746

—

5,746

Non-agency collateralized loan obligations
—

11,424

—

11,424

Agency collateralized mortgage obligations
—

46,862

—

46,862

Agency mortgage-backed securities
—

27,296

—

27,296

Agency debentures
—

4,650

—

4,650

Equity securities
8,077

—

—

8,077

Interest rate swaps
—

21,292

—

21,292

Total financial assets
8,077

197,026

—

205,103

 
 
 
 
 
Financial liabilities:
 
 
 
 
Interest rate swaps
—

23,102

—

23,102

Total financial liabilities
$
—

$
23,102

$
—

$
23,102


 
December 31, 2015
(Dollars in thousands)
Level 1
Level 2
Level 3
Total Assets /
Liabilities
at Fair Value
Financial assets:
 
 
 
 
Investment securities available-for-sale:
 
 
 
 
Corporate bonds
$
—

$
43,733

$
—

$
43,733

Trust preferred securities
—

16,601

—

16,601

Non-agency mortgage-backed securities
—

5,743

—

5,743

Non-agency collateralized loan obligations
—

11,711

—

11,711

Agency collateralized mortgage obligations
—

49,371

—

49,371

Agency mortgage-backed securities
—

28,669

—

28,669

Agency debentures
—

4,732

—

4,732

Equity securities
7,759

—

—

7,759

Interest rate swaps
—

8,662

—

8,662

Total financial assets
7,759

169,222

—

176,981

 
 
 
 
 
Financial liabilities:
 
 
 
 
Interest rate swaps
—

9,592

—

9,592

Total financial liabilities
$
—

$
9,592

$
—

$
9,592
Fair value measurements, nonrecurring
The following tables represent the balances of assets measured at fair value on a non-recurring basis as of June 30, 2016 and December 31, 2015:
 
June 30, 2016
(Dollars in thousands)
Level 1
Level 2
Level 3
Total Assets
at Fair Value
Loans measured for impairment, net
$
—

$
—

$
12,005

$
12,005

Other real estate owned
—

—

1,730

1,730

Total assets
$
—

$
—

$
13,735

$
13,735


 
December 31, 2015
(Dollars in thousands)
Level 1
Level 2
Level 3
Total Assets
at Fair Value
Loans measured for impairment, net
$
—

$
—

$
12,625

$
12,625

Other real estate owned
—

—

1,730

1,730

Total assets
$
—

$
—

$
14,355

$
14,355
Fair value inputs, assets, quantitative information
The following tables present additional quantitative information about assets measured at fair value on a recurring and non-recurring basis and for which we have utilized Level 3 inputs to determine fair value as of June 30, 2016 and December 31, 2015:
 
June 30, 2016
 
(Dollars in thousands)
Fair Value
 
Valuation Techniques (1)
 
Significant Unobservable Inputs
 
Weighted Average
Discount Rate
 
Loans measured for impairment, net
$
12,005

 
Discounted cash flow
 
Discount due to restructured nature of operations
 
7
%
 
 
 
 
 
 
 
 
 
 
Other real estate owned
$
1,730

 
Appraisal value
 
Discount due
to salability conditions
 
10
%
 
(1) 
Fair value is generally determined through independent appraisals of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent.
 
December 31, 2015
 
(Dollars in thousands)
Fair Value
 
Valuation Techniques (1)
 
Significant Unobservable Inputs
 
Weighted Average
Discount Rate
 
Loans measured for impairment, net
$
5,428

 
Appraisal value or Liquidation analysis
 
Discount due
to salability conditions
 
14
%
 
 
 
 
 
 
 
 
 
 
Loans measured for impairment, net
$
7,197

 
Discounted cash flow
 
Discount due to restructured nature of operations
 
7
%
 
 
 
 
 
 
 
 
 
 
Other real estate owned
$
1,730

 
Appraisal value
 
Discount due
to salability conditions
 
10
%
 
(1) 
Fair value is generally determined through independent appraisals or liquidation analysis of the underlying collateral, which may include level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent.
Schedule of fair and carrying value of financial assets and liabilities
A summary of the carrying amounts and estimated fair values of financial instruments is as follows:
 
 
 
June 30, 2016
 
December 31, 2015
(Dollars in thousands)
Fair Value
Level
 
Carrying
Amount
Estimated
Fair Value
 
Carrying
Amount
Estimated
Fair Value
Financial assets:
 
 
 
 
 
 
 
Cash and cash equivalents
1
 
$
114,297

$
114,297

 
$
96,676

$
96,676

Investment securities available-for-sale: debt
2
 
175,734

175,734

 
160,560

160,560

Investment securities available-for-sale: equity
1
 
8,077

8,077

 
7,759

7,759

Investment securities held-to-maturity
2
 
44,774

45,931

 
47,290

48,099

Federal Home Loan Bank stock
2
 
13,632

13,632

 
9,802

9,802

Loans held-for-investment, net
3
 
2,980,094

2,980,674

 
2,823,310

2,813,278

Accrued interest receivable
2
 
7,774

7,774

 
7,056

7,056

Investment management fees receivable
2
 
7,674

7,674

 
6,191

6,191

Bank owned life insurance
2
 
60,905

60,905

 
60,019

60,019

Interest rate swaps
2
 
21,292

21,292

 
8,662

8,662

Other real estate owned
3
 
1,730

1,730

 
1,730

1,730

 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
Deposits
2
 
$
2,888,192

$
2,889,349

 
$
2,689,844

$
2,690,693

Borrowings, net
2
 
259,409

260,353

 
254,308

255,179

Accrued acquisition earnout liability
3
 
3,687

3,687

 
—

—

Interest rate swaps
2
 
23,102

23,102

 
9,592

9,592
v3.5.0.2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables)
 6 Months Ended
Jun. 30, 2016
Equity [Abstract]  
Changes in accumulated other comprehensive income
The following table shows the changes in accumulated other comprehensive income (loss), for the periods presented:
 
Three Months Ended June 30,
 
2016
 
2015
(Dollars in thousands)
Investment Securities
Derivatives
Accumulated Other Comprehensive Income (Loss)
 
Investment Securities
Derivatives
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period
$
(2,094
)
$
—

$
(2,094
)
 
$
(345
)
$
—

$
(345
)
Change in unrealized holding gains (losses)
1,114

(56
)
1,058

 
130

—

130

Gains reclassified from other comprehensive income (1)
(40
)
—

(40
)
 
—

—

—

Net other comprehensive income (loss)
1,074

(56
)
1,018

 
130

—

130

Balance, end of period
$
(1,020
)
$
(56
)
$
(1,076
)
 
$
(215
)
$
—

$
(215
)

(1) 
Consists of net realized gain on sale and call of investment securities of $62,000 and $0, net of income tax expense of $22,000 and $0 for the three months ended June 30, 2016 and 2015, respectively.
 
Six Months Ended June 30,
 
2016
 
2015
(Dollars in thousands)
Investment Securities
Derivatives
Accumulated Other Comprehensive Income (Loss)
 
Investment Securities
Derivatives
Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period
$
(1,443
)
$
—

$
(1,443
)
 
$
(627
)
$
—

$
(627
)
Change in unrealized holding gains (losses)
464

(56
)
408

 
423

—

423

Gains reclassified from other comprehensive income (1)
(41
)
—

(41
)
 
(11
)
—

(11
)
Net other comprehensive income (loss)
423

(56
)
367

 
412

—

412

Balance, end of period
$
(1,020
)
$
(56
)
$
(1,076
)
 
$
(215
)
$
—

$
(215
)
(1) 
Consists of net realized gain on sale and call of investment securities of $63,000 and $17,000, net of income tax expense of $22,000 and $6,000 for the six months ended June 30, 2016 and 2015, respectively.
v3.5.0.2
Segments (Tables)
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Schedule of segment reporting information, by segment
The following tables provide financial information for the two segments of the Company as of and for the periods indicated. The information provided under the caption “Parent and Other” represents operations not considered to be reportable segments and/or general operating expenses of the Company, which includes the parent company activity as well as eliminations and adjustments that are necessary for purposes of reconciliation to the consolidated amounts.
(Dollars in thousands)
June 30,
2016
December 31,
2015
Assets:
(unaudited)
Bank
$
3,441,794

$
3,236,756

Investment management
82,659

65,516

Parent and other
4,138

(101
)
Total assets
$
3,528,591

$
3,302,171


 
Three Months Ended June 30, 2016
 
Three Months Ended June 30, 2015
(Dollars in thousands)
Bank
Investment
Management
Parent
and Other
Consolidated
 
Bank
Investment
Management
Parent
and Other
Consolidated
Income statement data:
(unaudited)
 
(unaudited)
Interest income
$
23,730

$
—

$
65

$
23,795

 
$
20,429

$
—

$
52

$
20,481

Interest expense
5,025

—

551

5,576

 
3,259

—

549

3,808

Net interest income (loss)
18,705

—

(486
)
18,219

 
17,170

—

(497
)
16,673

Provision for loan losses
80

—

—

80

 
185

—

—

185

Net interest income (loss) after provision for loan losses
18,625

—

(486
)
18,139

 
16,985

—

(497
)
16,488

Non-interest income:
 
 
 
 
 
 
 
 
 
Investment management fees
—

9,517

(55
)
9,462

 
—

7,556

(42
)
7,514

Net gain on the sale and call of investment securities
62

—

—

62

 
—

—

—

—

Other non-interest income
1,922

1

—

1,923

 
2,062

—

—

2,062

Total non-interest income
1,984

9,518

(55
)
11,447

 
2,062

7,556

(42
)
9,576

Non-interest expense:
 
 
 
 
 
 
 
 
 
Intangible amortization expense
—

438

—

438

 
—

390

—

390

Other non-interest expense
12,299

6,683

37

19,019

 
11,690

5,497

5

17,192

Total non-interest expense
12,299

7,121

37

19,457

 
11,690

5,887

5

17,582

Income (loss) before tax
8,310

2,397

(578
)
10,129

 
7,357

1,669

(544
)
8,482

Income tax expense (benefit)
2,662

917

(223
)
3,356

 
2,291

633

(170
)
2,754

Net income (loss)
$
5,648

$
1,480

$
(355
)
$
6,773

 
$
5,066

$
1,036

$
(374
)
$
5,728


 
Six Months Ended June 30, 2016
 
Six Months Ended June 30, 2015
(Dollars in thousands)
Bank
Investment
Management
Parent
and Other
Consolidated
 
Bank
Investment
Management
Parent
and Other
Consolidated
Income statement data:
(unaudited)
 
(unaudited)
Interest income
$
47,017

$
—

$
138

$
47,155

 
$
40,577

$
—

$
106

$
40,683

Interest expense
9,457

—

1,102

10,559

 
6,259

—

1,088

7,347

Net interest income (loss)
37,560

—

(964
)
36,596

 
34,318

—

(982
)
33,336

Provision for loan losses
202

—

—

202

 
1,110

—

—

1,110

Net interest income (loss) after provision for loan losses
37,358

—

(964
)
36,394

 
33,208

—

(982
)
32,226

Non-interest income:
 
 
 
 
 
 
 
 
 
Investment management fees
—

16,590

(109
)
16,481

 
—

15,258

(89
)
15,169

Net gain on the sale and call of investment securities
63

—

—

63

 
17

—

—

17

Other non-interest income
3,817

1

—

3,818

 
3,240

1

—

3,241

Total non-interest income
3,880

16,591

(109
)
20,362

 
3,257

15,259

(89
)
18,427

Non-interest expense:
 
 
 
 
 
 
 
 
 
Intangible amortization expense
—

828

—

828

 
—

779

—

779

Other non-interest expense
24,623

11,977

35

36,635

 
22,943

10,995

(33
)
33,905

Total non-interest expense
24,623

12,805

35

37,463

 
22,943

11,774

(33
)
34,684

Income (loss) before tax
16,615

3,786

(1,108
)
19,293

 
13,522

3,485

(1,038
)
15,969

Income tax expense (benefit)
5,653

1,448

(424
)
6,677

 
4,188

1,321

(324
)
5,185

Net income (loss)
$
10,962

$
2,338

$
(684
)
$
12,616

 
$
9,334

$
2,164

$
(714
)
$
10,784
v3.5.0.2
Summary of Significant Accounting Policies (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2016
USD ($)
offices
portfolio
subsidiary
Jun. 30, 2015
USD ($)
Dec. 31, 2015
USD ($)
Significant Accounting Policies [Line Items]      
Number of wholly-owned subsidiaries | subsidiary 3    
Assets under Management, Carrying Amount $ 10,590,000    
Number of representative offices, additional to main office | offices 4    
Consecutive period loan is current 6 months    
Number of Loan Portfolios | portfolio 3    
Bad debt expense $ 0 $ 0  
Allowance for uncollectible accounts $ 0   $ 0
Maximum      
Significant Accounting Policies [Line Items]      
Original maturity of short-term investments 90 days    
Useful life 25 years    
Estimated useful lives of office properties and equipment 10 years    
Minimum      
Significant Accounting Policies [Line Items]      
Past due period for loans 90 days    
Useful life 4 years    
Estimated useful lives of office properties and equipment 3 years    
v3.5.0.2
Business Combinations (Details) - USD ($)
$ / shares in Units, $ in Thousands
 6 Months Ended 12 Months Ended
Apr. 29, 2016
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Dec. 31, 2014
Business Acquisition [Line Items]          
Assets under Management, Carrying Amount   $ 10,590,000      
Intangible Assets, Gross (Excluding Goodwill)   33,095   $ 19,510  
Goodwill   38,724 $ 34,163 34,163 $ 34,163
Finite-Lived Intangible Assets, Gross   23,795   19,510  
Mutual Fund client list [Member]          
Business Acquisition [Line Items]          
Indefinite-Lived Intangible Assets (Excluding Goodwill)   9,300   0  
Trade Names [Member]          
Business Acquisition [Line Items]          
Finite-Lived Intangible Assets, Gross   4,040   1,190  
Sub-advisory client list [Member]          
Business Acquisition [Line Items]          
Finite-Lived Intangible Assets, Gross   11,530   11,200  
Separate Managed Accounts Client List [Member]          
Business Acquisition [Line Items]          
Finite-Lived Intangible Assets, Gross   1,810   1,095  
Noncompete Agreements [Member]          
Business Acquisition [Line Items]          
Finite-Lived Intangible Assets, Gross   465   75  
The Killen Group, Inc. [Member]          
Business Acquisition [Line Items]          
Assets under Management, Carrying Amount $ 2,020,000        
Payments to Acquire Business, Gross 15,000        
Business Combination, EBITDA contingency for purchase price 3,000        
Business Combination, Consideration Transferred, Other 3,687        
Business Combination, Consideration, Total 18,687        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents 905        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Investment Management Fees Receivable 912        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment 20        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets 106        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets 1,943        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other 1,402        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities 1,402        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net 541        
Intangible Assets, Gross (Excluding Goodwill) 13,585        
Goodwill 4,561        
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net 18,687        
Business Combination, Acquisition Related Costs   1   $ 601  
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual   1,800      
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual   350      
Finite-Lived Intangible Assets, Gross $ 4,285        
Finite-Lived Intangible Asset, Useful Life 242 months        
Business Acquisition, Pro Forma Revenue   60,628 59,724    
Business Acquisition, Pro Forma Net Income (Loss)   $ 13,359 $ 11,163    
Business Acquisition, Pro Forma Earnings Per Share, Basic   $ 0.48 $ 0.40    
Business Acquisition, Pro Forma Earnings Per Share, Diluted   $ 0.47 $ 0.40    
The Killen Group, Inc. [Member] | Mutual Fund client list [Member]          
Business Acquisition [Line Items]          
Indefinite-Lived Intangible Assets (Excluding Goodwill) $ 9,300        
The Killen Group, Inc. [Member] | Trade Names [Member]          
Business Acquisition [Line Items]          
Finite-Lived Intangible Assets, Gross $ 2,850        
Finite-Lived Intangible Asset, Useful Life 300 months        
The Killen Group, Inc. [Member] | Sub-advisory client list [Member]          
Business Acquisition [Line Items]          
Finite-Lived Intangible Assets, Gross $ 330        
Finite-Lived Intangible Asset, Useful Life 132 months        
The Killen Group, Inc. [Member] | Separate Managed Accounts Client List [Member]          
Business Acquisition [Line Items]          
Finite-Lived Intangible Assets, Gross $ 715        
Finite-Lived Intangible Asset, Useful Life 168 months        
The Killen Group, Inc. [Member] | Noncompete Agreements [Member]          
Business Acquisition [Line Items]          
Finite-Lived Intangible Assets, Gross $ 390        
Finite-Lived Intangible Asset, Useful Life 48 months        
v3.5.0.2
Investment Securities - Available-for-sale and Held-to-maturity Securities Investment Types (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Investment securities available-for-sale:    
Investments AFS (cost) $ 185,160 $ 170,337
Available-for-sale Securities, Gross Unrealized Appreciation 1,033 393
Available-for-sale Securities, Gross Unrealized Depreciation 2,382 2,411
Available-for-sale Securities, Estimated Fair Value 183,811 168,319
Investment securities held-to-maturity:    
Held-to-maturity Securities, Amortized Cost 44,774 47,290
Held-to-maturity Securities, Gross Unrealized Appreciation 1,210 894
Held-to-maturity Securities, Gross Unrealized Depreciation 53 85
Investments HTM (fair value) 45,931 48,099
Amortized Cost 229,934 217,627
Gross Unrealized Appreciation 2,243 1,287
Gross Unrealized Depreciation 2,435 2,496
Estimated Fair Value 229,742 216,418
Corporate bonds    
Investment securities available-for-sale:    
Investments AFS (cost) 62,820 43,952
Available-for-sale Securities, Gross Unrealized Appreciation 652 18
Available-for-sale Securities, Gross Unrealized Depreciation 20 237
Available-for-sale Securities, Estimated Fair Value 63,452 43,733
Investment securities held-to-maturity:    
Held-to-maturity Securities, Amortized Cost 19,446 19,448
Held-to-maturity Securities, Gross Unrealized Appreciation 507 498
Held-to-maturity Securities, Gross Unrealized Depreciation 53 84
Investments HTM (fair value) 19,900 19,862
Trust preferred securities    
Investment securities available-for-sale:    
Investments AFS (cost) 17,645 17,579
Available-for-sale Securities, Gross Unrealized Appreciation 0 0
Available-for-sale Securities, Gross Unrealized Depreciation 1,341 978
Available-for-sale Securities, Estimated Fair Value 16,304 16,601
Non-agency mortgage-backed securities    
Investment securities available-for-sale:    
Investments AFS (cost) 5,750 5,756
Available-for-sale Securities, Gross Unrealized Appreciation 0 0
Available-for-sale Securities, Gross Unrealized Depreciation 4 13
Available-for-sale Securities, Estimated Fair Value 5,746 5,743
Non-agency collateralized loan obligations    
Investment securities available-for-sale:    
Investments AFS (cost) 11,591 11,843
Available-for-sale Securities, Gross Unrealized Appreciation 0 0
Available-for-sale Securities, Gross Unrealized Depreciation 167 132
Available-for-sale Securities, Estimated Fair Value 11,424 11,711
Agency collateralized mortgage obligations    
Investment securities available-for-sale:    
Investments AFS (cost) 47,130 49,544
Available-for-sale Securities, Gross Unrealized Appreciation 54 92
Available-for-sale Securities, Gross Unrealized Depreciation 322 265
Available-for-sale Securities, Estimated Fair Value 46,862 49,371
Agency mortgage-backed securities    
Investment securities available-for-sale:    
Investments AFS (cost) 26,988 28,586
Available-for-sale Securities, Gross Unrealized Appreciation 327 270
Available-for-sale Securities, Gross Unrealized Depreciation 19 187
Available-for-sale Securities, Estimated Fair Value 27,296 28,669
Agency debentures    
Investment securities available-for-sale:    
Investments AFS (cost) 4,739 4,719
Available-for-sale Securities, Gross Unrealized Appreciation 0 13
Available-for-sale Securities, Gross Unrealized Depreciation 89 0
Available-for-sale Securities, Estimated Fair Value 4,650 4,732
Investment securities held-to-maturity:    
Held-to-maturity Securities, Amortized Cost   2,453
Held-to-maturity Securities, Gross Unrealized Appreciation   19
Held-to-maturity Securities, Gross Unrealized Depreciation   0
Investments HTM (fair value)   2,472
Equity securities    
Investment securities available-for-sale:    
Investments AFS (cost) 8,497 8,358
Available-for-sale Securities, Gross Unrealized Appreciation 0 0
Available-for-sale Securities, Gross Unrealized Depreciation 420 599
Available-for-sale Securities, Estimated Fair Value 8,077 7,759
Municipal bonds    
Investment securities held-to-maturity:    
Held-to-maturity Securities, Amortized Cost 25,328 25,389
Held-to-maturity Securities, Gross Unrealized Appreciation 703 377
Held-to-maturity Securities, Gross Unrealized Depreciation 0 1
Investments HTM (fair value) $ 26,031 $ 25,765
v3.5.0.2
Investment Securities - Available-for-sale Securities Contractual Maturities (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Available-for-sale Securities, Debt Maturities, Amortized Cost    
Due in one year or less $ 21,954  
Due from one to five years 42,138  
Due from five to ten years 9,729  
Due after ten years 102,842  
Amortized Cost 176,663  
Available-for-sale Securities, Debt Maturities, Estimated Fair Value    
Due in one year or less 21,978  
Due from one to five years 42,740  
Due from five to ten years 9,564  
Due after ten years 101,452  
Available-for-Sale, Estimated Fair Value 175,734  
Held-to-maturity Securities, Debt Maturities, Amortized Cost    
Due in one year or less 0  
Due from one to five years 13,569  
Due from five to ten years 29,778  
Due after ten years 1,427  
Held-to-maturity Securities 44,774 $ 47,290
Held-to-maturity Securities, Debt Maturities, Estimated Fair Value    
Due in one year or less 0  
Due from one to five years 14,119  
Due from five to ten years 30,303  
Due after ten years 1,509  
Held-to-maturity Securities, Estimated Fair Value $ 45,931 $ 48,099
v3.5.0.2
Investment Securities - Available-for-sale Securities Unrealized Losses (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 Months $ 51,676 $ 68,552
12 Months or More 44,667 51,135
Total 96,343 119,687
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]    
Less than 12 Months 893 924
12 Months or More 1,489 1,487
Total 2,382 2,411
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]    
Less than 12 Months 5,448 10,434
12 Months or More 0 0
Total 5,448 10,434
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 Months 53 85
12 Months or More 0 0
Total 53 85
Less than 12 Months, Fair Value, Total Impaired Securities 57,124 78,986
Less than 12 Months, Unrealized losses, Total Impaired Securities 946 1,009
12 Months or More, Fair Value, Total Impaired Securities 44,667 51,135
12 Months or More, Unrealized losses, Total Impaired Securities 1,489 1,487
Total, Fair Value, Total Impaired Securities 101,791 130,121
Total, Unrealized losses, Total Impaired Securities 2,435 2,496
Corporate bonds    
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 Months 0 23,582
12 Months or More 7,138 6,460
Total 7,138 30,042
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]    
Less than 12 Months 0 155
12 Months or More 20 82
Total 20 237
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]    
Less than 12 Months 5,448 9,863
12 Months or More 0 0
Total 5,448 9,863
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 Months 53 84
12 Months or More 0 0
Total 53 84
Trust preferred securities    
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 Months 8,041 8,076
12 Months or More 8,263 8,526
Total 16,304 16,602
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]    
Less than 12 Months 533 471
12 Months or More 808 507
Total 1,341 978
Non-agency mortgage-backed securities    
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 Months 5,746 0
12 Months or More 0 5,743
Total 5,746 5,743
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]    
Less than 12 Months 4 0
12 Months or More 0 13
Total 4 13
Non-agency collateralized loan obligations    
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 Months 1,554 9,859
12 Months or More 9,870 0
Total 11,424 9,859
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]    
Less than 12 Months 44 132
12 Months or More 123 0
Total 167 132
Agency collateralized mortgage obligations    
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 Months 29,992 25,566
12 Months or More 11,319 11,836
Total 41,311 37,402
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]    
Less than 12 Months 204 151
12 Months or More 118 114
Total 322 265
Agency mortgage-backed securities    
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 Months 1,693 1,469
12 Months or More 0 10,811
Total 1,693 12,280
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]    
Less than 12 Months 19 15
12 Months or More 0 172
Total 19 187
Agency debentures    
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 Months 4,650  
12 Months or More 0  
Total 4,650  
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]    
Less than 12 Months 89  
12 Months or More 0  
Total 89  
Equity securities    
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 Months 0 0
12 Months or More 8,077 7,759
Total 8,077 7,759
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]    
Less than 12 Months 0 0
12 Months or More 420 599
Total $ 420 599
Municipal bonds    
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract]    
Less than 12 Months   571
12 Months or More   0
Total   571
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]    
Less than 12 Months   1
12 Months or More   0
Total   $ 1
v3.5.0.2
Investment Securities - Available-for-sale Securities Narrative (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
USD ($)
position
Jun. 30, 2015
USD ($)
Jun. 30, 2016
USD ($)
position
Jun. 30, 2015
USD ($)
Dec. 31, 2015
USD ($)
position
Schedule of Available-for-sale Securities [Line Items]          
Interest income on investments securities $ 1,000 $ 647 $ 2,000 $ 1,300  
Non-taxable interest income 118 98 232 188  
Dividend income 167 106 337 367  
Available-for-sale securities with a contractual maturity due after ten years 101,452   101,452    
Floating rate securities $ 89,300   $ 89,300    
Percent of available-for-sale securities that are floating rate securities 88.00%   88.00%    
Held-to-maturity securities, debt maturities due from five to ten years $ 29,778   $ 29,778    
Held-to-maturity securities, debt maturities due from five to ten years, callable 8,000   8,000    
Proceeds from the sale of investment securities available-for-sale 2,400 0 3,040 9,734  
Gross realized gains on available-for-sale securities 19 0 20 34  
Gross realized losses on available-for-sale securities $ 3 $ 0 3 17  
Amount of Held-to-Maturity Investment Security Called     2,500    
Held-to-Maturity Securities, Gross Realized Gains     $ 46    
Number of available-for-sale positions in unrealized loss positions | position 28   28   36
Available-for-sale Securities, Gross Unrealized Depreciation $ 2,382   $ 2,382   $ 2,411
Available-for-sale, continuous unrealized loss position for more than 12 months $ 1,489   $ 1,489   $ 1,487
Available-for-sale, number of positions in an unrealized loss position for more than 12 months | position 10   10   14
Held-to-maturity securities, aggregate unrealized losses temporary impaired $ 53   $ 53   $ 85
Held-to-maturity, number of positions in an unrealized loss that were temporarily impaired position | position 3   3   6
Held-to-maturity securities, aggregate unrealized losses $ 53   $ 53   $ 85
Held-to-maturity, number of positions in an unrealized loss position for more than 12 months | position 0   0   0
Investment securities trading, at fair value $ 0   $ 0   $ 0
Federal Home Loan Bank Stock 13,632   13,632   $ 9,802
Payments for (Proceeds from) Federal Home Loan Bank Stock     (3,830) $ 1,328  
Federal Home Loan Bank          
Schedule of Available-for-sale Securities [Line Items]          
Available-for-sale securities available to be pledged as collateral for borrowings $ 5,800   $ 5,800    
v3.5.0.2
Loans - Loans by Class (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans held-for-investment, net of deferred fees $ 2,997,309   $ 2,841,284      
Allowance for loan losses (17,215) $ (18,546) (17,974) $ (21,407) $ (21,205) $ (20,273)
Loans held-for-investment, net 2,980,094   2,823,310      
Loans receivable            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans held-for-investment, before deferred fees 2,997,181   2,841,708      
Deferred loan (fees) costs 128   (424)      
Loans held-for-investment, net of deferred fees 2,997,309   2,841,284      
Allowance for loan losses (17,215)   (17,974)      
Loans held-for-investment, net 2,980,094   2,823,310      
Commercial and Industrial | Loans receivable            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans held-for-investment, before deferred fees 573,952   634,857      
Deferred loan (fees) costs (219)   (625)      
Loans held-for-investment, net of deferred fees 573,733   634,232      
Allowance for loan losses (10,841)   (11,064)      
Loans held-for-investment, net 562,892   623,168      
Commercial Real Estate | Loans receivable            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans held-for-investment, before deferred fees 990,740   864,863      
Deferred loan (fees) costs (2,709)   (2,675)      
Loans held-for-investment, net of deferred fees 988,031   862,188      
Allowance for loan losses (4,872)   (5,344)      
Loans held-for-investment, net 983,159   856,844      
Private Banking | Loans receivable            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Loans held-for-investment, before deferred fees 1,432,489   1,341,988      
Deferred loan (fees) costs 3,056   2,876      
Loans held-for-investment, net of deferred fees 1,435,545   1,344,864      
Allowance for loan losses (1,502)   (1,566)      
Loans held-for-investment, net $ 1,434,043   $ 1,343,298      
v3.5.0.2
Loans - Narrative (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2016
USD ($)
letter
Jun. 30, 2015
USD ($)
letter
Dec. 31, 2015
USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Unfunded commitments, including letters of credit at prevailing market interest rates $ 1,480,000   $ 1,270,000
Lending commitments maturing in the next 12 months 1,160,000    
Lending commitments maturing in second and third year, total 192,400    
Lending commitments maturing after third year 134,100    
Reserve for losses on unfunded commitments 579   546
Loans in the process of origination 34,000   31,100
Standby letters of credit      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Unfunded commitments, including letters of credit at prevailing market interest rates 83,500   $ 89,900
Standby letters of credit expiring in next 12 months $ 44,100    
Number of letters of credit drawn | letter 1 1  
Standby letters of credit $ 100 $ 100  
v3.5.0.2
Allowance for Loan Losses - Narrative (Details)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2016
USD ($)
portfolio
loans
Dec. 31, 2015
USD ($)
loans
Jun. 30, 2016
USD ($)
portfolio
loans
Jun. 30, 2015
USD ($)
loans
Jun. 30, 2016
USD ($)
portfolio
loans
Jun. 30, 2015
USD ($)
loans
Dec. 31, 2015
USD ($)
loans
Mar. 31, 2016
USD ($)
Mar. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Financing Receivable, Recorded Investment [Line Items]                    
Number of Loan Portfolios | portfolio 3   3   3          
Charge-offs     $ 1,543 $ 0 $ 1,543 $ 0        
Recoveries     132 17 582 24        
Impaired and non-accrual loans $ 19,622 $ 17,170 19,622   19,622   $ 17,170      
Impaired financing receivable, interest income, cash basis method         0   0      
Loans 90 days or more past due and still accruing 0 0 0   0   0      
Impaired financing receivable, related allowance 4,230 4,545 4,230   4,230   4,545      
Allowance for loan losses 17,215 17,974 17,215 21,407 17,215 21,407 17,974 $ 18,546 $ 21,205 $ 20,273
Impaired loans 8,645 4,628 8,645   8,645   4,628      
Troubled debt restructurings 9,397 13,404 9,397   9,397   13,404      
Unused commitments   1,700         1,700      
Other real estate 1,700 1,700 1,700   1,700   1,700      
Mortgage Loans in process of foreclosure, amount 0   0   0          
Commercial and Industrial                    
Financing Receivable, Recorded Investment [Line Items]                    
Charge-offs     1,543 0 1,543 0        
Recoveries     $ 132 $ 4 $ 582 $ 11        
Number of loans with charge offs | loans         1          
Number of loans with recoveries | loans     4 2 6 3        
Impaired and non-accrual loans 16,130 12,310 $ 16,130   $ 16,130   12,310      
Impaired financing receivable, related allowance 3,650 3,800 3,650   3,650   3,800      
Allowance for loan losses 10,841 11,064 10,841 $ 14,621 10,841 $ 14,621 11,064 11,464 14,191 13,501
Impaired loans 5,733 513 5,733   5,733   513      
Commercial Real Estate                    
Financing Receivable, Recorded Investment [Line Items]                    
Charge-offs     0 0 0 0        
Recoveries     0 0 0 0        
Impaired and non-accrual loans 2,912 2,912 2,912   2,912   2,912      
Impaired financing receivable, related allowance 0 0 0   0   0      
Allowance for loan losses 4,872 5,344 4,872 4,749 4,872 4,749 5,344 5,666 4,973 4,755
Impaired loans 2,912 2,912 2,912   2,912   2,912      
Private banking                    
Financing Receivable, Recorded Investment [Line Items]                    
Charge-offs     0 0 0 0        
Recoveries     0 $ 13 0 $ 13        
Number of loans with recoveries | loans       1   1        
Impaired and non-accrual loans 580 1,948 580   580   1,948      
Impaired financing receivable, related allowance 580 745 580   580   745      
Allowance for loan losses 1,502 1,566 1,502 $ 2,037 1,502 $ 2,037 1,566 $ 1,416 $ 2,041 $ 2,017
Impaired loans $ 0 $ 1,203 $ 0   $ 0   $ 1,203      
Minimum                    
Financing Receivable, Recorded Investment [Line Items]                    
Past due period for loans         90 days          
Financing Receivable | Cash and Marketable Securities Collateral Risk | Private banking                    
Financing Receivable, Recorded Investment [Line Items]                    
Percentage of total private banking loans 89.50% 87.80%                
Impaired and Non-accrual [Member] | Commercial and Industrial                    
Financing Receivable, Recorded Investment [Line Items]                    
Number of loans | loans 2 3 2   2   3      
Impaired and Non-accrual [Member] | Commercial Real Estate                    
Financing Receivable, Recorded Investment [Line Items]                    
Number of loans | loans 1 1 1   1   1      
Impaired and Non-accrual [Member] | Private banking                    
Financing Receivable, Recorded Investment [Line Items]                    
Number of loans | loans   2         2      
Non-accrual [Member]                    
Financing Receivable, Recorded Investment [Line Items]                    
Troubled debt restructurings $ 8,923 $ 12,894 $ 8,923   $ 8,923   $ 12,894      
Financing receivable, number of contracts, trouble debt restructuring in default | loans           2        
Payment defaults for loans modified as TDRs         $ 0 $ 5,600        
Non-accrual [Member] | Commercial and Industrial                    
Financing Receivable, Recorded Investment [Line Items]                    
Number of loans classified as TDR | loans 2 5 2   2   5      
Non-accrual [Member] | Private banking                    
Financing Receivable, Recorded Investment [Line Items]                    
Number of loans classified as TDR | loans   1         1      
Accruing Interest                    
Financing Receivable, Recorded Investment [Line Items]                    
Troubled debt restructurings $ 474 $ 510 $ 474   $ 474   $ 510      
Unused commitments $ 39 $ 39 $ 39   $ 39   $ 39      
Accruing Interest | Commercial and Industrial                    
Financing Receivable, Recorded Investment [Line Items]                    
Number of loans classified as TDR | loans 1 1 1   1   1      
v3.5.0.2
Allowance for Loan Losses - Credit Quality Indicator (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment $ 2,997,309 $ 2,841,284
Commercial and Industrial    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment 573,733 634,232
Commercial Real Estate    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment 988,031 862,188
Private Banking    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment 1,435,545 1,344,864
Pass    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment 2,940,662 2,786,770
Pass | Commercial and Industrial    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment 520,589 585,561
Pass | Commercial Real Estate    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment 985,119 858,396
Pass | Private Banking    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment 1,434,954 1,342,813
Special mention    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment 24,465 32,743
Special mention | Commercial and Industrial    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment 24,465 31,863
Special mention | Commercial Real Estate    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment 0 880
Special mention | Private Banking    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment 0 0
Substandard    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment 32,182 20,798
Substandard | Commercial and Industrial    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment 28,679 15,835
Substandard | Commercial Real Estate    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment 2,912 2,912
Substandard | Private Banking    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment $ 591 2,051
Doubtful    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment   973
Doubtful | Commercial and Industrial    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment   973
Doubtful | Commercial Real Estate    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment   0
Doubtful | Private Banking    
Financing Receivable, Recorded Investment [Line Items]    
Loans held-for-investment   $ 0
v3.5.0.2
Allowance for Loan Losses - Changes in Allowance (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Allowance for Loan and Lease Losses [Roll Forward]        
Balance, beginning of period $ 18,546 $ 21,205 $ 17,974 $ 20,273
Provision for loan losses 80 185 202 1,110
Charge-offs (1,543) 0 (1,543) 0
Recoveries 132 17 582 24
Balance, end of period 17,215 21,407 17,215 21,407
Commercial and Industrial        
Allowance for Loan and Lease Losses [Roll Forward]        
Balance, beginning of period 11,464 14,191 11,064 13,501
Provision for loan losses 788 426 738 1,109
Charge-offs (1,543) 0 (1,543) 0
Recoveries 132 4 582 11
Balance, end of period 10,841 14,621 10,841 14,621
Commercial Real Estate        
Allowance for Loan and Lease Losses [Roll Forward]        
Balance, beginning of period 5,666 4,973 5,344 4,755
Provision for loan losses (794) (224) (472) (6)
Charge-offs 0 0 0 0
Recoveries 0 0 0 0
Balance, end of period 4,872 4,749 4,872 4,749
Private Banking        
Allowance for Loan and Lease Losses [Roll Forward]        
Balance, beginning of period 1,416 2,041 1,566 2,017
Provision for loan losses 86 (17) (64) 7
Charge-offs 0 0 0 0
Recoveries 0 13 0 13
Balance, end of period $ 1,502 $ 2,037 $ 1,502 $ 2,037
v3.5.0.2
Allowance for Loan Losses - Analysis of Past Due Loans (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due $ 3,136 $ 5,319
Current 2,994,173 2,835,965
Loans held-for-investment, net of deferred fees 2,997,309 2,841,284
Commercial and Industrial    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due 0 976
Current 573,733 633,256
Loans held-for-investment, net of deferred fees 573,733 634,232
Commercial Real Estate    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due 2,912 2,912
Current 985,119 859,276
Loans held-for-investment, net of deferred fees 988,031 862,188
Private Banking    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due 224 1,431
Current 1,435,321 1,343,433
Loans held-for-investment, net of deferred fees 1,435,545 1,344,864
Financing Receivables, 30 to 59 Days Past Due [Member]    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due 0 0
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial and Industrial    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due 0 0
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due 0 0
Financing Receivables, 30 to 59 Days Past Due [Member] | Private Banking    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due 0 0
Financing Receivables, 60 to 89 Days Past Due [Member]    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due 0 0
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial and Industrial    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due 0 0
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due 0 0
Financing Receivables, 60 to 89 Days Past Due [Member] | Private Banking    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due 0 0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due 3,136 5,319
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial and Industrial    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due 0 976
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Real Estate    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due 2,912 2,912
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Private Banking    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Total Past Due $ 224 $ 1,431
v3.5.0.2
Allowance for Loan Losses - Impaired Loans (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Recorded Investment    
With a related allowance $ 10,977 $ 12,542
Without a related allowance 8,645 4,628
Total 19,622 17,170
Unpaid Principal Balance    
With a related allowance 11,413 20,068
Without a related allowance 20,269 12,304
Total 31,682 32,372
Related Allowance 4,230 4,545
Average Recorded Investment    
With a related allowance 8,903 16,155
Without a related allowance 10,030 5,148
Total 18,933 21,303
Interest Income Recognized    
With a related allowance 0 0
Without a related allowance 13 29
Total 13 29
Commercial and Industrial    
Recorded Investment    
With a related allowance 10,397 11,797
Without a related allowance 5,733 513
Total 16,130 12,310
Unpaid Principal Balance    
With a related allowance 10,703 19,204
Without a related allowance 11,202 1,789
Total 21,905 20,993
Related Allowance 3,650 3,800
Average Recorded Investment    
With a related allowance 8,262 15,331
Without a related allowance 7,118 838
Total 15,380 16,169
Interest Income Recognized    
With a related allowance 0 0
Without a related allowance 13 29
Total 13 29
Commercial Real Estate    
Recorded Investment    
With a related allowance 0 0
Without a related allowance 2,912 2,912
Total 2,912 2,912
Unpaid Principal Balance    
With a related allowance 0 0
Without a related allowance 9,067 9,067
Total 9,067 9,067
Related Allowance 0 0
Average Recorded Investment    
With a related allowance 0 0
Without a related allowance 2,912 3,108
Total 2,912 3,108
Interest Income Recognized    
With a related allowance 0 0
Without a related allowance 0 0
Total 0 0
Private Banking    
Recorded Investment    
With a related allowance 580 745
Without a related allowance 0 1,203
Total 580 1,948
Unpaid Principal Balance    
With a related allowance 710 864
Without a related allowance 0 1,448
Total 710 2,312
Related Allowance 580 745
Average Recorded Investment    
With a related allowance 641 824
Without a related allowance 0 1,202
Total 641 2,026
Interest Income Recognized    
With a related allowance 0 0
Without a related allowance 0 0
Total $ 0 $ 0
v3.5.0.2
Allowance for Loan Losses - Allowance (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Allowance for loan losses [Abstract]    
Individually evaluated for impairment $ 4,230 $ 4,545
Collectively evaluated for impairment 12,985 13,429
Total allowance for loan losses 17,215 17,974
Portfolio loans [Abstract]    
Individually evaluated for impairment 19,622 17,170
Collectively evaluated for impairment 2,977,687 2,824,114
Loans held-for-investment, net of deferred fees 2,997,309 2,841,284
Commercial and Industrial    
Allowance for loan losses [Abstract]    
Individually evaluated for impairment 3,650 3,800
Collectively evaluated for impairment 7,191 7,264
Total allowance for loan losses 10,841 11,064
Portfolio loans [Abstract]    
Individually evaluated for impairment 16,130 12,310
Collectively evaluated for impairment 557,603 621,922
Loans held-for-investment, net of deferred fees 573,733 634,232
Commercial Real Estate    
Allowance for loan losses [Abstract]    
Individually evaluated for impairment 0 0
Collectively evaluated for impairment 4,872 5,344
Total allowance for loan losses 4,872 5,344
Portfolio loans [Abstract]    
Individually evaluated for impairment 2,912 2,912
Collectively evaluated for impairment 985,119 859,276
Loans held-for-investment, net of deferred fees 988,031 862,188
Private Banking    
Allowance for loan losses [Abstract]    
Individually evaluated for impairment 580 745
Collectively evaluated for impairment 922 821
Total allowance for loan losses 1,502 1,566
Portfolio loans [Abstract]    
Individually evaluated for impairment 580 1,948
Collectively evaluated for impairment 1,434,965 1,342,916
Loans held-for-investment, net of deferred fees $ 1,435,545 $ 1,344,864
v3.5.0.2
Allowance for Loan Losses - Troubled Debt Restructuring (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Financing Receivable, Modifications [Line Items]    
Troubled debt restructurings $ 9,397 $ 13,404
Accruing Interest    
Financing Receivable, Modifications [Line Items]    
Troubled debt restructurings 474 510
Non-accrual    
Financing Receivable, Modifications [Line Items]    
Troubled debt restructurings $ 8,923 $ 12,894
v3.5.0.2
Allowance for Loan Losses - Modifications (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2015
USD ($)
loans
Jun. 30, 2015
USD ($)
loans
Financing Receivable, Modifications [Line Items]    
Count | loans 1 4
Recorded Investment at the time of Modification $ 4,064 $ 11,346
Current Recorded Investment 4,021 8,516
Financing Receivable, Modifications, Pre-Modification, Allowance for Credit Losses 400 2,333
Financing Receivable, Modifications, Post-Modification, Allowance for Credit Losses $ 0 $ 3,353
Commercial and Industrial [Member] | Change in Interest Terms [Member]    
Financing Receivable, Modifications [Line Items]    
Count | loans 1 1
Recorded Investment at the time of Modification $ 4,064 $ 4,064
Current Recorded Investment 4,021 4,021
Financing Receivable, Modifications, Pre-Modification, Allowance for Credit Losses 400 400
Financing Receivable, Modifications, Post-Modification, Allowance for Credit Losses $ 0 $ 0
Commercial and Industrial [Member] | Extended Term and Deferred Principal [Member]    
Financing Receivable, Modifications [Line Items]    
Count | loans   1
Recorded Investment at the time of Modification   $ 433
Current Recorded Investment   0
Financing Receivable, Modifications, Pre-Modification, Allowance for Credit Losses   433
Financing Receivable, Modifications, Post-Modification, Allowance for Credit Losses   $ 0
Commercial and Industrial [Member] | Deferred principal    
Financing Receivable, Modifications [Line Items]    
Count | loans   2
Recorded Investment at the time of Modification   $ 6,849
Current Recorded Investment   4,495
Financing Receivable, Modifications, Pre-Modification, Allowance for Credit Losses   1,500
Financing Receivable, Modifications, Post-Modification, Allowance for Credit Losses   $ 3,353
v3.5.0.2
Goodwill and Other Intangibles Assets (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Dec. 31, 2014
Acquired Finite-Lived Intangible Assets [Line Items]            
Goodwill $ 38,724 $ 34,163 $ 38,724 $ 34,163 $ 34,163 $ 34,163
Goodwill, Acquired During Period     4,561 0    
Total Intangible Assets, Net 29,410 17,432 29,410 17,432 16,653 $ 18,211
Finite-lived Intangible Assets Acquired     13,585 0    
Amortization of Intangible Assets (438) $ (390) (828) $ (779)    
Finite-Lived Intangible Assets, Gross 23,795   23,795   19,510  
Finite-Lived Intangible Assets, Accumulated Amortization (3,685)   (3,685)   (2,857)  
Intangible Assets, Gross (Excluding Goodwill) 33,095   33,095   19,510  
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months 1,851   1,851      
Finite-Lived Intangible Assets, Amortization Expense, Year Two 1,845   1,845      
Finite-Lived Intangible Assets, Amortization Expense, Year Three 1,832   1,832      
Finite-Lived Intangible Assets, Amortization Expense, Year Four 1,816   1,816      
Finite-Lived Intangible Assets, Amortization Expense, Year Five 1,734   1,734      
Finite-Lived Intangible Assets, Amortization Expense, after Year Five 11,032   11,032      
Finite-Lived Intangible Assets, Net 20,110   20,110   16,653  
Mutual Fund client list [Member]            
Acquired Finite-Lived Intangible Assets [Line Items]            
Indefinite-Lived Intangible Assets (Excluding Goodwill) 9,300   9,300   0  
Trade Names [Member]            
Acquired Finite-Lived Intangible Assets [Line Items]            
Finite-Lived Intangible Assets, Gross 4,040   4,040   1,190  
Finite-Lived Intangible Assets, Accumulated Amortization (158)   (158)   (109)  
Finite-Lived Intangible Assets, Net 3,882   3,882   1,081  
Sub-advisory client list [Member]            
Acquired Finite-Lived Intangible Assets [Line Items]            
Finite-Lived Intangible Assets, Gross 11,530   11,530   11,200  
Finite-Lived Intangible Assets, Accumulated Amortization (1,941)   (1,941)   (1,521)  
Finite-Lived Intangible Assets, Net 9,589   9,589   9,679  
Separate Managed Accounts Client List [Member]            
Acquired Finite-Lived Intangible Assets [Line Items]            
Finite-Lived Intangible Assets, Gross 1,810   1,810   1,095  
Finite-Lived Intangible Assets, Accumulated Amortization (264)   (264)   (201)  
Finite-Lived Intangible Assets, Net 1,546   1,546   894  
Other Institutional Client List [Member]            
Acquired Finite-Lived Intangible Assets [Line Items]            
Finite-Lived Intangible Assets, Gross 5,950   5,950   5,950  
Finite-Lived Intangible Assets, Accumulated Amortization (1,262)   (1,262)   (992)  
Finite-Lived Intangible Assets, Net 4,688   4,688   4,958  
Noncompete Agreements [Member]            
Acquired Finite-Lived Intangible Assets [Line Items]            
Finite-Lived Intangible Assets, Gross 465   465   75  
Finite-Lived Intangible Assets, Accumulated Amortization (60)   (60)   (34)  
Finite-Lived Intangible Assets, Net $ 405   $ 405   $ 41  
v3.5.0.2
Deposits - Schedule of Deposits by Type (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Interest Rate Range Domestic Deposit Liabilities [Abstract]    
Interest-bearing checking accounts, minimum 0.05%  
Interest-bearing checking accounts, maximum 0.60%  
Money market deposit accounts, minimum 0.05%  
Money market deposit accounts, maximum 1.50%  
Time deposits, minimum 0.05%  
Time deposits, maximum 1.44%  
Weighted Average Rate Domestic Deposit Liabilities [Abstract]    
Interest-bearing checking accounts 0.49% 0.42%
Money market deposit accounts 0.70% 0.50%
Time deposits 0.87% 0.78%
Average rate paid on interest-bearing accounts 0.74% 0.60%
Domestic Deposit Liabilities, Demand and Savings Accounts [Abstract]    
Noninterest-bearing checking accounts $ 160,538 $ 159,859
Interest-bearing checking accounts 181,318 136,037
Money market deposit accounts 1,657,272 1,464,279
Total demand and savings accounts 1,999,128 1,760,175
Time deposits 889,064 929,669
Total deposit balance $ 2,888,192 $ 2,689,844
v3.5.0.2
Deposits - Contractual Maturities of Time Deposits (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Time Deposits, Rolling Year Maturity [Abstract]    
12 months or less $ 708,279 $ 645,004
12 months to 24 months 156,101 219,333
24 months to 36 months 24,684 65,332
36 months to 48 months 0 0
48 months to 60 months 0 0
Over 60 months 0 0
Total $ 889,064 $ 929,669
v3.5.0.2
Deposits - Interest Expense on Deposits by Deposit Type (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Interest Expense, Deposits [Abstract]        
Interest-bearing checking accounts $ 154 $ 99 $ 307 $ 219
Money market deposit accounts 2,622 1,336 4,829 2,556
Time deposits 1,827 1,741 3,605 3,293
Total interest expense on deposits $ 4,603 $ 3,176 $ 8,741 $ 6,068
v3.5.0.2
Deposits - Narrative (Details) - USD ($)
$ in Millions
Jun. 30, 2016
Dec. 31, 2015
Deposits [Abstract]    
Brokered deposits $ 1,060.0 $ 1,050.0
Certificate of Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS), brokered 470.0 496.5
Time deposits, $100,000 or more, excluding brokered certificates of deposit 373.9 409.2
Time Deposits 250,000 or more $ 150.8 $ 142.7
v3.5.0.2
Borrowings (Details) - USD ($)
Jun. 30, 2014
Jun. 30, 2016
Dec. 31, 2015
Debt Instrument [Line Items]      
Ending Balance   $ 259,409,000 $ 254,308,000
Federal Home Loan Bank [Member]      
Debt Instrument [Line Items]      
Bond security pledged as collateral, fair value   5,800,000  
Federal Home Loan Bank [Member] | Subsidiaries [Member]      
Debt Instrument [Line Items]      
Bond security pledged as collateral, fair value   5,800,000  
Loans pledged as collateral   774,000,000  
Federal Home Loan Bank [Member] | Subsidiaries [Member] | Line of credit      
Debt Instrument [Line Items]      
Borrowing capacity   554,800,000  
M&T Bank [Member] | Subsidiaries [Member] | Line of credit      
Debt Instrument [Line Items]      
Borrowing capacity   10,000,000  
Texas Capital Bank [Member] | Line of credit      
Debt Instrument [Line Items]      
Borrowing capacity   25,000,000  
Texas Capital Bank [Member] | Subsidiaries [Member] | Line of credit      
Debt Instrument [Line Items]      
Borrowing capacity   $ 20,000,000  
Subordinated Debt [Member] | Subordinated Notes Payable 5.75 Percent      
Debt Instrument [Line Items]      
Interest Rate 5.75% 5.75% 5.75%
Long-term Debt $ 35,000,000 $ 34,409,000 $ 34,308,000
Term 5 years    
Deferred Finance Costs, Net   591,000 692,000
Federal Home Loan Bank Advances [Member] | Subsidiaries [Member]      
Debt Instrument [Line Items]      
Short-term Debt   $ 225,000,000 $ 220,000,000
Federal Home Loan Bank Advances [Member] | Federal Home Loan Bank Borrowings, Issued 6/30/2016, Maturity 7/1/2016 [Member]      
Debt Instrument [Line Items]      
Interest Rate   0.51%  
Short-term Debt   $ 75,000,000  
Federal Home Loan Bank Advances [Member] | Federal Home Loan Bank Borrowings, Issued 6/29/2016, Maturity 9/29/2016 [Member] [Member]      
Debt Instrument [Line Items]      
Interest Rate   0.66%  
Short-term Debt   $ 100,000,000  
Federal Home Loan Bank Advances [Member] | Federal Home Loan Bank Borrowings, Issued 12/31/15, Maturity 1/4/2016 [Member]      
Debt Instrument [Line Items]      
Interest Rate     0.51%
Short-term Debt     $ 170,000,000
Federal Home Loan Bank Advances [Member] | Federal Home Loan Bank Borrowings, Issued 7/29/2015, Maturity 8/4/2016 [Member]      
Debt Instrument [Line Items]      
Interest Rate   0.61% 0.61%
Short-term Debt   $ 25,000,000 $ 25,000,000
Federal Home Loan Bank Advances [Member] | Federal Home Loan Bank Borrowings, Issued 7/29/2015, Maturity 11/3/2016 [Member]      
Debt Instrument [Line Items]      
Interest Rate   0.72% 0.72%
Short-term Debt   $ 25,000,000 $ 25,000,000
v3.5.0.2
Regulatory Capital - Regulatory Capital Requirements (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Total risk-based capital (Amount)    
Actual Capital $ 321,170 $ 326,378
Capital Required for Capital Adequacy $ 201,322 $ 188,176
Total risk-based capital (Ratio)    
Actual Capital 12.76% 13.88%
Capital Required for Capital Adequacy 8.00% 8.00%
Tier 1 risk-based capital (Amount)    
Tier 1 Risk Based Capital $ 283,157 $ 287,072
Tier 1 Risk Based Capital Required for Capital Adequacy $ 150,992 $ 141,132
Tier 1 risk-based capital (Ratio)    
Tier 1 Risk Based Capital 11.25% 12.20%
Tier 1 Risk Based Capital Required for Capital Adequacy 6.00% 6.00%
Common Equity Tier One Risk Based Capital (Amount)    
Common Equity Tier One Risk Based Capital $ 283,157 $ 287,072
Common Equity Tier One Risk Based Capital Required for Capital Adequacy $ 113,244 $ 105,849
Common Equity Tier One RIsk Based Capital (Ratio)    
Common Equity Tier One Risk Based Capital To Risk Weighted Assets 11.25% 12.20%
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets 4.50% 4.50%
Tier 1 leverage (Amount)    
Tier 1 Leverage Capital $ 283,157 $ 287,072
Tier 1 Leverage Capital Required for Capital Adequacy $ 134,737 $ 126,932
Tier 1 leverage (Ratio)    
Tier 1 Leverage Capital 8.41% 9.05%
Tier 1 Leverage Capital Required for Capital Adequacy 4.00% 4.00%
Fully Phased-in Capital Conservation Buffer Required for Capital Adequacy to Risk Weighted Assets 2.50%  
One-Year Period Phase-In of Capital Conservation Buffer Required for Capital Adequacy to Risk Weighted Assets 0.625%  
Capital Conservation Buffer Phase-in Period 4 years  
Subsidiaries [Member]    
Total risk-based capital (Amount)    
Actual Capital $ 304,080 $ 310,624
Capital Required for Capital Adequacy 198,774 186,077
Capital Required to be Well Capitalized $ 248,468 $ 232,596
Total risk-based capital (Ratio)    
Actual Capital 12.24% 13.35%
Capital Required for Capital Adequacy 8.00% 8.00%
Capital Required to be Well Capitalized 10.00% 10.00%
Tier 1 risk-based capital (Amount)    
Tier 1 Risk Based Capital $ 286,628 $ 292,234
Tier 1 Risk Based Capital Required for Capital Adequacy 149,081 139,558
Tier 1 Risk Based Capital Required to be Well Capitalized $ 198,774 $ 186,077
Tier 1 risk-based capital (Ratio)    
Tier 1 Risk Based Capital 11.54% 12.56%
Tier 1 Risk Based Capital Required for Capital Adequacy 6.00% 6.00%
Tier 1 Risk Based Capital Required to be Well Capitalized 8.00% 8.00%
Common Equity Tier One Risk Based Capital (Amount)    
Common Equity Tier One Risk Based Capital $ 286,628 $ 292,234
Common Equity Tier One Risk Based Capital Required for Capital Adequacy 111,810 104,668
Common Equity Tier One Risk Based Capital Required to be Well Capitalized $ 161,504 $ 151,187
Common Equity Tier One RIsk Based Capital (Ratio)    
Common Equity Tier One Risk Based Capital To Risk Weighted Assets 11.54% 12.56%
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets 4.50% 4.50%
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets 6.50% 6.50%
Tier 1 leverage (Amount)    
Tier 1 Leverage Capital $ 286,628 $ 292,234
Tier 1 Leverage Capital Required for Capital Adequacy 133,752 125,870
Tier 1 Leverage Capital Required to be Well Capitalized $ 167,190 $ 157,338
Tier 1 leverage (Ratio)    
Tier 1 Leverage Capital 8.57% 9.29%
Tier 1 Leverage Capital Required for Capital Adequacy 4.00% 4.00%
Tier 1 Leverage Capital Required to be Well Capitalized 5.00% 5.00%
v3.5.0.2
Employee Benefit Plans (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Feb. 28, 2013
USD ($)
Jun. 30, 2016
USD ($)
Jun. 30, 2015
USD ($)
Jun. 30, 2016
USD ($)
Jun. 30, 2015
USD ($)
Dec. 31, 2015
USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]            
Employer's contribution to employees' 401(k) plan, percent       3.00% 3.00%  
Defined Contribution Plan Eligible to Participate Age       21    
Contribution expense   $ 206 $ 166 $ 402 $ 353  
Chief Executive Officer | Supplemental Employee Retirement Plan, Defined Benefit            
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]            
Vesting period 5 years          
Projected monthly payments $ 25          
Number of months projected payments paid 180 months          
Other Postretirement Benefit Expense   232 $ 199 $ 454 $ 391  
Discount rate       2.15% 2.98%  
Liability recorded   $ 2,500   $ 2,500   $ 2,100
Minimum | Chief Executive Officer | Supplemental Employee Retirement Plan, Defined Benefit            
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]            
Number of months before commencement 60 months          
v3.5.0.2
Stock Transactions - Narrative (Details) - USD ($)
 6 Months Ended 24 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Jan. 31, 2016
Oct. 31, 2014
Class of Stock [Line Items]          
Shares repurchased 257,722   1,000,000    
Cost of shares repurchased $ 3,177,000 $ 3,158,000 $ 9,900,000    
Average cost per share (usd per share) $ 12.33   $ 9.90    
Common Stock          
Class of Stock [Line Items]          
Stock repurchase program, authorized amount       $ 10,000,000 $ 10,000,000
Stock repurchase program, authorized shares       1,000,000 1,000,000
Shares repurchased 257,722 321,109      
v3.5.0.2
Stock Transactions - Shares Outstanding Activity (Details) - shares
 6 Months Ended 24 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Number of Common Shares Outstanding      
Purchase of treasury stock (shares) (257,722)   (1,000,000)
Number of Common Shares Outstanding      
Number of Common Shares Outstanding      
Balance, beginning of period (shares) 28,056,195 28,060,888  
Issuance of restricted common stock (shares) 394,309 255,916  
Forfeitures of restricted common stock (shares) (4,000) 0  
Exercise of stock options (shares) 22,500 5,000  
Purchase of treasury stock (shares) (257,722) (321,109)  
Balance, ending of period (shares) 28,211,282 28,000,695 28,056,195
v3.5.0.2
Earnings Per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Earnings Per Share [Abstract]        
Net income available to common shareholders $ 6,773 $ 5,728 $ 12,616 $ 10,784
Basic shares (in shares) 27,549,475 27,718,226 27,601,331 27,804,599
Non-vested restricted stock - dilutive (in shares) 180,317 48,933 147,823 26,780
Stock options - dilutive (in shares) 495,612 416,889 472,728 345,131
Diluted shares (in shares) 28,225,404 28,184,048 28,221,882 28,176,510
Earnings per common share:        
Basic $ 0.25 $ 0.21 $ 0.46 $ 0.39
Diluted $ 0.24 $ 0.20 $ 0.45 $ 0.38
Anti-dilutive shares (in shares) 421,661 707,893 627,893 973,393
v3.5.0.2
Derivatives and Hedging Activity - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Designated as Hedging Instrument | Other Assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives, fair value $ 0 $ 0
Designated as Hedging Instrument | Other Liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives, fair value 221 229
Not Designated as Hedging Instrument | Other Assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives, fair value 21,292 8,662
Not Designated as Hedging Instrument | Other Liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives, fair value $ 22,881 $ 9,363
v3.5.0.2
Derivatives and Hedging Activity - Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance (Details) - Interest Rate Swap - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Designated as Hedging Instrument        
Derivatives, Fair Value [Line Items]        
Amount of gain or (loss) recognized in income on derivative $ (22) $ (74) $ (45) $ (156)
Not Designated as Hedging Instrument        
Derivatives, Fair Value [Line Items]        
Amount of gain or (loss) recognized in income on derivative (385) 261 (840) 44
Interest income / expense | Designated as Hedging Instrument        
Derivatives, Fair Value [Line Items]        
Amount of gain or (loss) recognized in income on derivative (23) (76) (47) (158)
Non-interest income / (expense) | Designated as Hedging Instrument        
Derivatives, Fair Value [Line Items]        
Amount of gain or (loss) recognized in income on derivative 1 2 2 2
Non-interest income / (expense) | Not Designated as Hedging Instrument        
Derivatives, Fair Value [Line Items]        
Amount of gain or (loss) recognized in income on derivative $ (385) $ 261 $ (840) $ 44
v3.5.0.2
Derivatives and Hedging Activity - Narrative (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
USD ($)
Interest_Rate_Swap
Jun. 30, 2015
USD ($)
Jun. 30, 2016
USD ($)
Interest_Rate_Swap
Jun. 30, 2015
USD ($)
Derivatives, Fair Value [Line Items]        
Counterparty default losses     $ 0 $ 0
Interest Rate Swap        
Derivatives, Fair Value [Line Items]        
Termination value of derivatives, including accrued interest, in a net liability position $ 23,200   23,200  
Collateral already posted amount 23,200   23,200  
Interest Rate Swap | Designated as Hedging Instrument        
Derivatives, Fair Value [Line Items]        
Amount of gain or (loss) recognized in income on derivative (22) $ (74) (45) (156)
Interest Rate Swap | Designated as Hedging Instrument | Interest income / expense        
Derivatives, Fair Value [Line Items]        
Amount of gain or (loss) recognized in income on derivative (23) (76) (47) (158)
Interest Rate Swap | Designated as Hedging Instrument | Non-interest income / (expense)        
Derivatives, Fair Value [Line Items]        
Amount of gain or (loss) recognized in income on derivative $ 1 2 $ 2 2
Interest Rate Swap | Not Designated as Hedging Instrument        
Derivatives, Fair Value [Line Items]        
Number of interest rate derivatives | Interest_Rate_Swap 194   194  
Derivative, aggregate notional amount $ 784,100   $ 784,100  
Amount of gain or (loss) recognized in income on derivative (385) 261 (840) 44
Interest Rate Swap | Not Designated as Hedging Instrument | Non-interest income / (expense)        
Derivatives, Fair Value [Line Items]        
Amount of gain or (loss) recognized in income on derivative $ (385) $ 261 $ (840) $ 44
Fair Value Hedging | Interest Rate Swap        
Derivatives, Fair Value [Line Items]        
Number of interest rate derivatives | Interest_Rate_Swap 4   4  
Derivative, aggregate notional amount $ 3,000   $ 3,000  
Cash Flow Hedging [Member] | Interest Rate Swap        
Derivatives, Fair Value [Line Items]        
Number of interest rate derivatives | Interest_Rate_Swap 2   2  
Derivative, aggregate notional amount $ 100,000   $ 100,000  
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred     $ 87  
Maximum Length of Time Hedged in Interest Rate Cash Flow Hedge     36 months  
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net $ (87)      
v3.5.0.2
Disclosures About Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Financial assets:    
Assets, Fair Value Disclosure $ 205,103 $ 176,981
Financial liabilities:    
Total financial liabilities 23,102 9,592
Level 1    
Financial assets:    
Assets, Fair Value Disclosure 8,077 7,759
Financial liabilities:    
Total financial liabilities 0 0
Level 2    
Financial assets:    
Assets, Fair Value Disclosure 197,026 169,222
Financial liabilities:    
Total financial liabilities 23,102 9,592
Level 3    
Financial assets:    
Assets, Fair Value Disclosure 0 0
Financial liabilities:    
Total financial liabilities 0 0
Interest Rate Swap    
Financial assets:    
Interest rate swaps 21,292 8,662
Financial liabilities:    
Interest rate swaps 23,102 9,592
Interest Rate Swap | Level 1    
Financial assets:    
Interest rate swaps 0 0
Financial liabilities:    
Interest rate swaps 0 0
Interest Rate Swap | Level 2    
Financial assets:    
Interest rate swaps 21,292 8,662
Financial liabilities:    
Interest rate swaps 23,102 9,592
Interest Rate Swap | Level 3    
Financial assets:    
Interest rate swaps 0 0
Financial liabilities:    
Interest rate swaps 0 0
Corporate bonds    
Financial assets:    
Investment securities 63,452 43,733
Corporate bonds | Level 1    
Financial assets:    
Investment securities 0 0
Corporate bonds | Level 2    
Financial assets:    
Investment securities 63,452 43,733
Corporate bonds | Level 3    
Financial assets:    
Investment securities 0 0
Trust preferred securities    
Financial assets:    
Investment securities 16,304 16,601
Trust preferred securities | Level 1    
Financial assets:    
Investment securities 0 0
Trust preferred securities | Level 2    
Financial assets:    
Investment securities 16,304 16,601
Trust preferred securities | Level 3    
Financial assets:    
Investment securities 0 0
Non-agency mortgage-backed securities    
Financial assets:    
Investment securities 5,746 5,743
Non-agency mortgage-backed securities | Level 1    
Financial assets:    
Investment securities 0 0
Non-agency mortgage-backed securities | Level 2    
Financial assets:    
Investment securities 5,746 5,743
Non-agency mortgage-backed securities | Level 3    
Financial assets:    
Investment securities 0 0
Non-agency collateralized loan obligations    
Financial assets:    
Investment securities 11,424 11,711
Non-agency collateralized loan obligations | Level 1    
Financial assets:    
Investment securities 0 0
Non-agency collateralized loan obligations | Level 2    
Financial assets:    
Investment securities 11,424 11,711
Non-agency collateralized loan obligations | Level 3    
Financial assets:    
Investment securities 0 0
Agency collateralized mortgage obligations    
Financial assets:    
Investment securities 46,862 49,371
Agency collateralized mortgage obligations | Level 1    
Financial assets:    
Investment securities 0 0
Agency collateralized mortgage obligations | Level 2    
Financial assets:    
Investment securities 46,862 49,371
Agency collateralized mortgage obligations | Level 3    
Financial assets:    
Investment securities 0 0
Agency mortgage-backed securities    
Financial assets:    
Investment securities 27,296 28,669
Agency mortgage-backed securities | Level 1    
Financial assets:    
Investment securities 0 0
Agency mortgage-backed securities | Level 2    
Financial assets:    
Investment securities 27,296 28,669
Agency mortgage-backed securities | Level 3    
Financial assets:    
Investment securities 0 0
Agency debentures    
Financial assets:    
Investment securities 4,650 4,732
Agency debentures | Level 1    
Financial assets:    
Investment securities 0 0
Agency debentures | Level 2    
Financial assets:    
Investment securities 4,650 4,732
Agency debentures | Level 3    
Financial assets:    
Investment securities 0 0
Equity securities    
Financial assets:    
Investment securities 8,077 7,759
Equity securities | Level 1    
Financial assets:    
Investment securities 8,077 7,759
Equity securities | Level 2    
Financial assets:    
Investment securities 0 0
Equity securities | Level 3    
Financial assets:    
Investment securities $ 0 $ 0
v3.5.0.2
Disclosures About Fair Value of Financial Instruments - Fair Value Measurements, Nonrecurring (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Level 3    
Financial assets:    
Other Real Estate Owned, Fair Value Disclosure $ 1,730 $ 1,730
Fair Value, Measurements, Nonrecurring    
Financial assets:    
Loans measured for impairment, net 12,005 12,625
Other Real Estate Owned, Fair Value Disclosure 1,730 1,730
Total assets 13,735 14,355
Fair Value, Measurements, Nonrecurring | Level 1    
Financial assets:    
Loans measured for impairment, net 0 0
Other Real Estate Owned, Fair Value Disclosure 0 0
Total assets 0 0
Fair Value, Measurements, Nonrecurring | Level 2    
Financial assets:    
Loans measured for impairment, net 0 0
Other Real Estate Owned, Fair Value Disclosure 0 0
Total assets 0 0
Fair Value, Measurements, Nonrecurring | Level 3    
Financial assets:    
Loans measured for impairment, net 12,005 12,625
Other Real Estate Owned, Fair Value Disclosure 1,730 1,730
Total assets $ 13,735 $ 14,355
v3.5.0.2
Disclosures About Fair Value of Financial Instruments - Fair Value Inputs, Assets, Quantitative Information (Details) - Level 3 - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Loans measured for impairment | Appraisal value    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Total financial assets   $ 5,428
Fair Value Inputs [Abstract]    
Discount due to salability conditions or lack of market data   14.00%
Loans measured for impairment | Discounted Cash Flow    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Total financial assets $ 12,005 $ 7,197
Fair Value Inputs [Abstract]    
Discount due to salability conditions or lack of market data 7.00% 7.00%
Other real estate owned | Appraisal value    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Total financial assets $ 1,730 $ 1,730
Fair Value Inputs [Abstract]    
Discount due to salability conditions or lack of market data 10.00% 10.00%
v3.5.0.2
Disclosures About Fair Value of Financial Instruments - Financial Assets and Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Financial assets:    
Investment securities available-for-sale: debt $ 175,734  
Investment securities held-to-maturity 45,931 $ 48,099
Investment management fees receivable 7,674 6,191
Level 1    
Financial assets:    
Cash and cash equivalents 114,297 96,676
Investment securities available-for-sale: equity 8,077 7,759
Level 1 | Carrying Amount    
Financial assets:    
Cash and cash equivalents 114,297 96,676
Investment securities available-for-sale: equity 8,077 7,759
Level 2    
Financial assets:    
Investment securities available-for-sale: debt 175,734 160,560
Investment securities held-to-maturity 45,931 48,099
Federal Home Loan Bank stock 13,632 9,802
Accrued interest receivable 7,774 7,056
Investment management fees receivable 7,674 6,191
Bank owned life insurance 60,905 60,019
Interest rate swaps 21,292 8,662
Financial liabilities:    
Deposits 2,889,349 2,690,693
Borrowings 260,353 255,179
Interest rate swaps 23,102 9,592
Level 2 | Carrying Amount    
Financial assets:    
Investment securities available-for-sale: debt 175,734 160,560
Investment securities held-to-maturity 44,774 47,290
Federal Home Loan Bank stock 13,632 9,802
Accrued interest receivable 7,774 7,056
Investment management fees receivable 7,674 6,191
Bank owned life insurance 60,905 60,019
Interest rate swaps 21,292 8,662
Financial liabilities:    
Deposits 2,888,192 2,689,844
Borrowings 259,409 254,308
Interest rate swaps 23,102 9,592
Level 3    
Financial assets:    
Loans held-for-investment, net 2,980,674 2,813,278
Other Real Estate Owned, Fair Value Disclosure 1,730 1,730
Financial liabilities:    
Accrued Acquisition Earnout Liability, Fair Value Disclosure 3,687 0
Level 3 | Carrying Amount    
Financial assets:    
Loans held-for-investment, net 2,980,094 2,823,310
Other Real Estate Owned, Fair Value Disclosure 1,730 1,730
Financial liabilities:    
Accrued Acquisition Earnout Liability, Fair Value Disclosure $ 3,687 $ 0
v3.5.0.2
Disclosures About Fair Value of Financial Instruments - Narrative (Details) - USD ($)
$ in Thousands
Jun. 30, 2016
Dec. 31, 2015
Fair Value Disclosures [Abstract]    
Specific allowance for loan losses $ 4,230 $ 4,545
v3.5.0.2
Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Accumulated Other Comprehensive Income [Roll Forward]        
Balance, beginning of period $ (2,094) $ (345) $ (1,443) $ (627)
Change in unrealized holding gains (losses) 1,058 130 408 423
Gains reclassified from other comprehensive income (loss) (40) 0 (41) (11)
Other comprehensive income 1,018 130 367 412
Balance, end of period (1,076) (215) (1,076) (215)
Net gain (loss) on sale and call of investment securities 62 0 63 17
Income tax expense 3,356 2,754 6,677 5,185
Unrealized Gains and Losses on Investment Securities        
Accumulated Other Comprehensive Income [Roll Forward]        
Balance, beginning of period (2,094) (345) (1,443) (627)
Change in unrealized holding gains (losses) 1,114 130 464 423
Gains reclassified from other comprehensive income (loss) (40) 0 (41) (11)
Other comprehensive income 1,074 130 423 412
Balance, end of period (1,020) (215) (1,020) (215)
Unrealized Gains and Losses on Investment Securities | Reclassification Out of Accumulated Other Comprehensive Income        
Accumulated Other Comprehensive Income [Roll Forward]        
Net gain (loss) on sale and call of investment securities 62 0 63 17
Income tax expense 22 0 22 6
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]        
Accumulated Other Comprehensive Income [Roll Forward]        
Balance, beginning of period 0 0 0 0
Change in unrealized holding gains (losses) (56) 0 (56) 0
Gains reclassified from other comprehensive income (loss) 0 0 0 0
Other comprehensive income (56) 0 (56) 0
Balance, end of period $ (56) $ 0 $ (56) $ 0
v3.5.0.2
Segments (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2016
USD ($)
Jun. 30, 2015
USD ($)
Jun. 30, 2016
USD ($)
segment
Jun. 30, 2015
USD ($)
Dec. 31, 2015
USD ($)
Segment Reporting Information [Line Items]          
Number of reportable segments | segment     2    
Assets $ 3,528,591   $ 3,528,591   $ 3,302,171
Income statement data:          
Interest income 23,795 $ 20,481 47,155 $ 40,683  
Interest expense 5,576 3,808 10,559 7,347  
Net interest income (loss) 18,219 16,673 36,596 33,336  
Provision for loan losses 80 185 202 1,110  
Net interest income after provision for loan losses 18,139 16,488 36,394 32,226  
Non-interest income:          
Investment management fees 9,462 7,514 16,481 15,169  
Net gain on the sale and call of investment securities 62 0 63 17  
Other non-interest income 1,923 2,062 3,818 3,241  
Total non-interest income 11,447 9,576 20,362 18,427  
Non-interest expense:          
Intangible amortization expense 438 390 828 779  
Other operating expenses 19,019 17,192 36,635 33,905  
Total non-interest expense 19,457 17,582 37,463 34,684  
Income before tax 10,129 8,482 19,293 15,969  
Income tax expense (benefit) 3,356 2,754 6,677 5,185  
Net income 6,773 5,728 12,616 10,784  
Parent and other          
Segment Reporting Information [Line Items]          
Assets 4,138   4,138   (101)
Income statement data:          
Interest income 65 52 138 106  
Interest expense 551 549 1,102 1,088  
Net interest income (loss) (486) (497) (964) (982)  
Provision for loan losses 0 0 0 0  
Net interest income after provision for loan losses (486) (497) (964) (982)  
Non-interest income:          
Investment management fees (55) (42) (109) (89)  
Net gain on the sale and call of investment securities 0 0 0 0  
Other non-interest income 0 0 0 0  
Total non-interest income (55) (42) (109) (89)  
Non-interest expense:          
Intangible amortization expense 0 0 0 0  
Other operating expenses 37 5 35 (33)  
Total non-interest expense 37 5 35 (33)  
Income before tax (578) (544) (1,108) (1,038)  
Income tax expense (benefit) (223) (170) (424) (324)  
Net income (355) (374) (684) (714)  
Bank | Operating segments          
Segment Reporting Information [Line Items]          
Assets 3,441,794   3,441,794   3,236,756
Income statement data:          
Interest income 23,730 20,429 47,017 40,577  
Interest expense 5,025 3,259 9,457 6,259  
Net interest income (loss) 18,705 17,170 37,560 34,318  
Provision for loan losses 80 185 202 1,110  
Net interest income after provision for loan losses 18,625 16,985 37,358 33,208  
Non-interest income:          
Investment management fees 0 0 0 0  
Net gain on the sale and call of investment securities 62 0 63 17  
Other non-interest income 1,922 2,062 3,817 3,240  
Total non-interest income 1,984 2,062 3,880 3,257  
Non-interest expense:          
Intangible amortization expense 0 0 0 0  
Other operating expenses 12,299 11,690 24,623 22,943  
Total non-interest expense 12,299 11,690 24,623 22,943  
Income before tax 8,310 7,357 16,615 13,522  
Income tax expense (benefit) 2,662 2,291 5,653 4,188  
Net income 5,648 5,066 10,962 9,334  
Investment management | Operating segments          
Segment Reporting Information [Line Items]          
Assets 82,659   82,659   $ 65,516
Income statement data:          
Interest income 0 0 0 0  
Interest expense 0 0 0 0  
Net interest income (loss) 0 0 0 0  
Provision for loan losses 0 0 0 0  
Net interest income after provision for loan losses 0 0 0 0  
Non-interest income:          
Investment management fees 9,517 7,556 16,590 15,258  
Net gain on the sale and call of investment securities 0 0 0 0  
Other non-interest income 1 0 1 1  
Total non-interest income 9,518 7,556 16,591 15,259  
Non-interest expense:          
Intangible amortization expense 438 390 828 779  
Other operating expenses 6,683 5,497 11,977 10,995  
Total non-interest expense 7,121 5,887 12,805 11,774  
Income before tax 2,397 1,669 3,786 3,485  
Income tax expense (benefit) 917 633 1,448 1,321  
Net income $ 1,480 $ 1,036 $ 2,338 $ 2,164