Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2017	Jan. 31, 2018	Jun. 30, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	TriState Capital Holdings, Inc.
Entity Central Index Key	0001380846
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Document Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		28,911,526
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 555,632,356

Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
ASSETS
Cash	$ 380	$ 183
Interest-earning deposits with other institutions	140,975	96,244
Federal funds sold	14,798	7,567
Cash and cash equivalents	156,153	103,994
Investment securities available-for-sale	147,485	174,892
Investment securities held-to-maturity, at cost (fair value: $60,141 and $54,498, respectively)	59,275	53,940
Federal Home Loan Bank stock	13,792	9,641
Total investment securities	220,552	238,473
Loans held-for-investment	4,184,244	3,401,054
Allowance for loan losses	(14,417)	(18,762)
Loans held-for-investment, net	4,169,827	3,382,292
Accrued interest receivable	13,519	9,614
Investment management fees receivable, net	7,720	7,749
Goodwill and other intangibles, net	65,358	67,209
Office properties and equipment, net	4,885	5,471
Bank owned life insurance	66,593	64,815
Deferred tax asset, net	0	7,204
Prepaid expenses and other assets	73,290	43,636
Total assets	4,777,897	3,930,457
Liabilities:
Deposits	3,987,611	3,286,779
Borrowings, net	335,913	239,510
Accrued interest payable on deposits and borrowings	2,499	1,867
Deferred tax liability, net	4,152	0
Other accrued expenses and other liabilities	58,651	50,494
Total liabilities	4,388,826	3,578,650
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 - 30,342,471 and 29,790,383, respectively; Shares outstanding - 28,591,101 and 28,415,654, respectively	289,507	285,480
Additional paid-in capital	10,290	6,782
Retained earnings	111,732	73,744
Accumulated other comprehensive income, net	1,246	830
Treasury stock (1,751,370 and 1,374,729 shares, respectively)	(23,704)	(15,029)
Total shareholders’ equity	389,071	351,807
Total liabilities and shareholders’ equity	$ 4,777,897	$ 3,930,457

Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred Stock, Shares Authorized	150,000	150,000
Preferred Stock, Shares Issued	0	0
Common Stock, Shares Authorized	45,000,000	45,000,000
Common Stock, Shares Issued	30,342,471	29,790,383
Common Stock, Shares Outstanding	28,591,101	28,415,654
Treasury Stock, Shares	1,751,370	1,374,729
Investments AFS (cost)	$ 147,057	$ 175,158
Investments HTM (fair value)	$ 60,141	$ 54,498

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Interest income:
Loans	$ 126,544	$ 92,252	$ 79,205
Investments	6,217	5,443	4,022
Interest-earning deposits	1,534	617	369
Total interest income	134,295	98,312	83,596
Interest expense:
Deposits	37,485	19,807	12,888
Borrowings	5,457	3,692	2,755
Total interest expense	42,942	23,499	15,643
Net interest income	91,353	74,813	67,953
Provision (credit) for loan losses	(623)	838	13
Net interest income after provision for loan losses	91,976	73,975	67,940
Non-interest income:
Investment management fees	37,100	37,035	29,618
Service charges	399	504	647
Net gain on the sale and call of investment securities	310	77	33
Swap fees	5,353	4,384	1,551
Commitment and other fees	1,462	2,029	2,022
Unrealized net gain (loss) on swaps	195	570	(161)
Bank owned life insurance income	1,778	1,796	1,696
Other income	369	113	77
Total non-interest income	46,966	46,508	35,483
Non-interest expense:
Compensation and employee benefits	59,316	54,522	46,136
Premises and occupancy costs	5,010	4,865	4,549
Professional fees	3,873	3,850	3,739
FDIC insurance expense	4,238	3,058	1,988
General insurance expense	1,047	1,037	1,066
State capital shares tax	1,546	1,394	1,081
Travel and entertainment expense	3,118	3,062	2,761
Data processing expense	582	1,153	1,073
Charitable contributions	1,057	996	1,021
Intangible amortization expense	1,851	1,753	1,558
Change in fair value of acquisition earn out	0	(3,687)	0
Other operating expenses	9,834	6,791	5,071
Total non-interest expense	91,472	78,794	70,043
Income before tax	47,470	41,689	33,380
Income tax expense	9,482	13,048	10,892
Net income	$ 37,988	$ 28,641	$ 22,488
Earnings per common share:
Earnings per common share, basic (in usd per share)	$ 1.38	$ 1.04	$ 0.81
Earnings per common share, diluted (in usd per share)	$ 1.32	$ 1.01	$ 0.80

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 37,988	$ 28,641	$ 22,488
Other comprehensive income (loss):
Unrealized holding gains (losses) on investment securities, net of tax expense (benefit) of $387, $674 and ($472), respectively	655	1,166	(795)
Reclassification adjustment for gains included in net income on investment securities, net of tax expense of ($109), ($11) and ($12), respectively	(186)	(20)	(21)
Unrealized holding gains on derivatives, net of tax expense of $107, $650 and $0, respectively	180	1,100	0
Reclassification adjustment for losses (gains) included in net income on derivatives, net of tax benefit (expense) of ($138), $16 and $0, respectively	(233)	27	0
Other comprehensive income (loss)	416	2,273	(816)
Total comprehensive income	$ 38,404	$ 30,914	$ 21,672

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Tax expense (benefit) on unrealized holding gains (losses) on investment securities	$ 387	$ 674	$ (472)
Tax benefit (expense) on investment securities losses (gains) reclassified from other comprehensive income	(109)	(11)	(12)
Tax expense (benefit) on unrealized holding gains (losses) on derivatives	107	650	0
Tax benefit (expense) on derivative losses (gains) reclassified from other comprehensive income	$ (138)	$ 16	$ 0

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
Balance, beginning of period at Dec. 31, 2014	$ 305,390	$ 280,895	$ 9,253	$ 22,615	$ (627)	$ (6,746)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	22,488			22,488
Other comprehensive income	(816)				(816)
Exercise of stock options	353	517	(164)
Purchase of treasury stock	(3,158)					(3,158)
Cancellation of stock options	(229)		(229)
Stock-based compensation	1,949		1,949
Balance, end of period 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	28,641			28,641
Other comprehensive income	2,273				2,273
Exercise of stock options	2,674	4,068	(1,394)
Purchase of treasury stock	(5,125)					(5,125)
Cancellation of stock options	(6,200)		(6,200)
Stock-based compensation	3,567		3,567
Balance, end of period at Dec. 31, 2016	351,807	285,480	6,782	73,744	830	(15,029)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	37,988			37,988
Other comprehensive income	416				416
Exercise of stock options	1,663	4,027	(2,364)
Purchase of treasury stock	(8,675)					(8,675)
Stock-based compensation	5,872		5,872
Balance, end of period at Dec. 31, 2017	$ 389,071	$ 289,507	$ 10,290	$ 111,732	$ 1,246	$ (23,704)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash Flows from Operating Activities:
Net income	$ 37,988	$ 28,641	$ 22,488
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and intangible amortization expense	3,366	3,077	2,882
Amortization of deferred financing costs	203	202	203
Provision (credit) for loan losses	(623)	838	13
Net gain on the sale of loans	(17)	0	0
Stock-based compensation expense	5,872	3,567	1,949
Net gain on the sale or call of investment securities available-for-sale	(295)	(31)	(33)
Net gain on the call of investment securities held-to-maturity	(15)	(46)	0
Income from investment securities trading	(48)	0	(20)
Purchase of investment securities trading	(9,802)	0	(4,963)
Proceeds from the sale of investment securities trading	9,850	0	4,983
Net amortization of premiums and discounts	919	883	752
Decrease (increase) in investment management fees receivable, net	29	(646)	627
Increase in accrued interest receivable	(3,905)	(2,558)	(777)
Increase in accrued interest payable	632	105	27
Bank owned life insurance income	(1,778)	(1,796)	(1,696)
Change in fair value of acquisition earn out	0	(3,687)	0
Increase (decrease) in income taxes payable	166	(95)	713
Decrease (increase) in prepaid income taxes	(10,222)	(5,438)	762
Deferred tax provision	11,110	3,675	172
Increase (decrease) in accounts payable and other accrued expenses	(1,508)	3,661	7,263
Payment of contingent consideration impacting operations	0	0	(1,771)
Cash received for allowance for leasehold improvements	0	1,050	0
Other, net	(3,709)	(1,293)	(1,884)
Net cash provided by operating activities	38,213	30,109	31,690
Cash Flows from Investing Activities:
Purchase of investment securities available-for-sale	(30,470)	(27,495)	(36,732)
Purchase of investment securities held-to-maturity	(8,467)	(9,250)	(14,357)
Proceeds from the sale of investment securities available-for-sale	2,527	4,691	11,792
Principal repayments and maturities of investment securities available-for-sale	55,621	17,333	21,292
Principal repayments and maturities of investment securities held-to-maturity	3,000	2,500	6,540
Purchase of bank owned life insurance	0	(3,000)	(5,000)
Investment in low income housing and historic tax credits	(5,502)	(1,625)	0
Investment in small business investment company	(1,405)	0	0
Net redemption (purchase) of Federal Home Loan Bank stock	(4,151)	161	(4,072)
Net increase in loans	(793,762)	(564,634)	(448,236)
Proceeds from loan sales	6,867	1,196	4,692
Proceeds from the sale of other real estate owned	597	1,080	0
Additions to office properties and equipment	(929)	(2,937)	(1,035)
Acquisition, net of acquired cash	0	(14,095)	0
Net cash used in investing activities	(776,074)	(596,075)	(465,116)
Cash Flows from Financing Activities:
Net increase in deposit accounts	700,832	596,935	352,891
Net increase in Federal Home Loan Bank advances	90,000	0	90,000
Net decrease in Federal Home Loan Bank advances	0	(15,000)	0
Net increase in line of credit advances	6,200	0	0
Net proceeds from exercise of stock options	1,663	2,674	353
Cancellation of stock options	0	(6,200)	(229)
Payment of contingent consideration	0	0	(15,465)
Purchase of treasury stock	(8,675)	(5,125)	(3,158)
Net cash provided by financing activities	790,020	573,284	424,392
Net change in cash and cash equivalents during the period	52,159	7,318	(9,034)
Cash and cash equivalents at beginning of the period	103,994	96,676	105,710
Cash and cash equivalents at end of the period	156,153	103,994	96,676
Cash paid during the year for:
Interest	42,107	23,192	15,413
Income taxes	7,266	14,823	9,393
Acquisition of non-cash assets and liabilities:
Assets acquired	0	1,038	0
Liabilities assumed	0	1,402	0
Other non-cash activity:
Loan foreclosures and repossessions	$ 0	$ 3,618	$ 360

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

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”), a registered broker/dealer.

The Bank was established to serve the commercial banking needs of middle-market businesses and private banking needs and high-net-worth individuals. Chartwell provides investment management services primarily to institutional investors, mutual funds and individual investors. CTSC Securities supports marketing efforts for the proprietary investment products provided by Chartwell, including shares of mutual 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 Securities and Exchange Commission (“SEC”). CTSC Securities is regulated by the SEC and Financial Industry Regulatory Authority (“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 conducts 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 different 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 (established in 2011 to hold and manage the foreclosed properties for the Bank), after elimination of inter-company accounts and transactions. 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.

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), on an after-tax basis.

The cost of securities sold is determined on a specific identification basis. Amortization of premiums and accretion of discounts are recorded as interest income on investments over the estimated 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 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 as well as the shareholders’ equity section of the consolidated statements of financial condition, on an after-tax basis. For equity securities an OTTI charge is recorded through current period earnings for the full decline in fair value below cost.

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 were recoverable at par value, as of December 31, 2017 and 2016. Cash and stock dividends are reported as interest income on investments, 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 estimated 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 on 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 a 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 owned, other than bank premises, is recorded at fair value less estimated selling costs. 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 other real estate owned (“OREO”) properties.

ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses is established through provisions for loan losses that are recorded in the consolidated statements of income. Loans are charged off 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.

In management’s judgment, the allowance was appropriate to cover probable losses inherent in the loan portfolio as of December 31, 2017 and 2016. 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 two components of the allowance for loan losses represent estimates of general reserves based upon Accounting Standards Codification (“ASC”) Topic 450, Contingencies; and specific reserves based on ASC Topic 310, Receivables. ASC Topic 450 applies to homogeneous loan pools such as commercial loans, consumer lines of credit and residential mortgages that are not individually evaluated for impairment. ASC Topic 310 is applied to commercial and consumer loans that are individually evaluated for impairment.

In management’s opinion, a loan is impaired, based upon current information and events, 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 of general reserves 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, the results of internal loan reviews, etc. Finally, management considers the impact of changes in current local and regional economic conditions in the markets that we serve.

Management bases the computation of the allowance for loan losses of general reserves 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: private banking, commercial and industrial, and commercial real estate. 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 received on a quarterly basis.

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. Bad debt expense is recorded to other non-interest expense on the consolidated statements of income and the allowance for uncollectible accounts is recorded to investment management fees receivable, net on the consolidated statements of financial position. 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 $322,000 of bad debt expense associated with a single relationship recorded for the year ended December 31, 2017. There was no bad debt expense recorded for the years ended December 31, 2016 and 2015. There was no allowance for uncollectible accounts recorded as of December 31, 2017 and 2016.

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 earn out 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. Goodwill is not amortized and is subject to at least annual assessments for impairment by applying a fair value based test. The Company reviews goodwill annually and again at any quarter-end if a material event occurs during the quarter that may affect goodwill. If goodwill testing is required, an assessment of qualitative factors can be completed before performing the two step goodwill impairment test. If an assessment of qualitative factors determines it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then the two step goodwill impairment test is not required. Goodwill is evaluated for potential impairment by determining if the fair value has fallen below carrying value.

Other intangible assets represent purchased assets that may lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. The Company has determined that certain of its acquired mutual fund client relationships meet the criteria to be considered indefinite-lived assets because the Company expects both the renewal of these contracts and the cash flows generated by these assets to continue indefinitely. Accordingly, the Company does not amortize these intangible assets, but instead reviews these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived assets may be impaired. Each reporting period, the Company assesses whether events or circumstances have occurred which indicate that the indefinite life criteria are no longer met. If the indefinite life criteria are no longer met, the Company would assess whether the carrying value of these assets exceeds its fair value, an impairment loss would be recorded in an amount equal to any such excess and these assets would be reclassified to finite-lived. Other intangible assets that the Company has determined to have finite lives, such as trade name, client lists and non-compete agreements are amortized over their estimated useful lives. 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. Finite-lived intangibles are evaluated for impairment on an annual basis or more frequently whenever events or circumstances occur indicating that the carrying amount may not be recoverable.

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 non-interest 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. Interest on deposits is accrued and charged to interest expense daily and is paid or credited in accordance with the terms of the respective accounts.

BORROWINGS

The Company records FHLB advances, line of credit borrowings and subordinated notes payable at their principal amount net of debt issuance costs. 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 upon the exercise of stock options and the 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. The Company considers uncertain tax positions that it has taken or expects to take on a tax return. Any interest and penalties related to unrecognized tax benefits would be recognized in income tax expense in the consolidated statements of income.

DERIVATIVES AND HEDGING ACTIVITIES

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 (loss). When the cash flows associated with the hedged item are realized, the gain or loss included in accumulated other comprehensive income (loss) is recognized in the consolidated statements of income. The Company also has interest rate 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 of share-based awards made to employees and directors.

Compensation cost for all share-based payments is based on the estimated grant-date fair value. The value of the portion of the award that is ultimately expected to vest is included in stock-based compensation expense 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 and the non-credit component of unrealized 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 cash flow hedge 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 previous net gains on treasury share transactions exists. Any deficiency is charged to retained earnings.

RECENT ACCOUNTING DEVELOPMENTS

In February 2018, the FASB issued Accounting Standard Update (“ASU”) 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" to address a narrow-scope financial reporting issue that arose as a consequence of the change in the tax law. On December 22, 2017, the U.S. federal government enacted a tax bill, H.R.1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (“Tax Cuts and Jobs Act”). The standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This standard is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The changes could be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company early adopted this standard on January 1, 2018, and elected to reclassify the effect of the change in the U.S. federal corporate income tax rate from accumulated other comprehensive income to retained earnings, to be reflected in the Consolidated Statements of Changes in Shareholders' Equity in the period of adoption.

In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which changes the recognition and presentation requirements of hedge accounting, including: eliminating the requirement to separately measure and report hedge ineffectiveness; and presenting all items that affect earnings in the same income statement line item as the hedged item. The standard also provides new alternatives for: applying hedge accounting to additional hedging strategies; measuring the hedged item in fair value hedges of interest rate risk; reducing the cost and complexity of applying hedge accounting by easing the requirements for effectiveness testing, hedge documentation and application of the critical terms match method; and reducing the risk of material error correction if a company applies the shortcut method inappropriately. This standard is effective for public business entities, 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 May 2017, the FASB issued ASU 2017-09, “Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting,” which clarifies what constitutes a modification of a share-based payment award. This standard is effective for all entities for annual and interim periods in fiscal years beginning after December 15, 2017. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities,” which shortens the premium amortization period for purchased non-contingently callable debt securities. Shortening the amortization period is generally expected to more closely align the interest income recognition with the expectations incorporated in the market pricing on the underlying securities. This standard is effective for public business entities 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 January 2017, the FASB issued ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which requires an entity to no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. The changes are effective for public business entities, for annual and interim periods in fiscal years beginning after December 15, 2019. All entities may early adopt the standard for goodwill impairment tests with measurement dates after January 1, 2017. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In January 2017, the FASB issued ASU 2017-03, “Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016, and November 17, 2016, EITF Meetings (SEC Update),” which incorporates into the FASB Accounting Standards Codification^® recent SEC guidance about disclosing, under SEC SAB Topic 11.M, the effect on financial statements of adopting the revenue, leases, and credit losses standards. The SEC staff had previously announced that registrants should include the disclosures starting with their December 2017 financial statements. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805),” which provides a new framework for determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This standard is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which requires companies to include cash and cash equivalents that have restrictions on withdrawal or use in total cash and cash equivalents on the statement of cash flows. This standard is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory,” which requires entities to recognize at the transaction date the income tax consequences of intercompany asset transfers other than inventory. This standard is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In September 2016, the FASB issued ASU 2016-15, “Statement of Cash Flow (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which addresses eight classification issues related to the statement of cash flows. The eight classification issues are as follows: debt prepayment or debt extinguishment costs; settlement of zero-coupon bonds; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This standard is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Entities should apply this standard using a retrospective transition method to each period presented. If it is impracticable for an entity to apply this standard retrospectively for some of the issues, it may apply the amendments for those issues prospectively as of the earliest date practicable. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued 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. 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. This standard 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. 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. This standard is effective for public business entities for interim and annual periods in fiscal years beginning after December 15, 2017. The adoption of this standard 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 standard implements a common approach 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. This standard establishes a five-step model that entities must follow to recognize revenue. This update is effective for annual periods and interim periods in fiscal years beginning after December 15, 2017, for public business entities. A significant amount of the Company’s revenues are derived from net interest income on financial assets and liabilities, which are excluded from the scope of the amended guidance. The Company completed its assessment of revenue streams and associated incremental costs of contracts affected by the standard. The Company’s adoption of this standard did not change the method in which we recognize revenue. This standard requires that certain incremental costs incurred to acquire some of our investment management contracts to be capitalized and deferred over the life of the contract. The adoption of this standard altered the timing, measurement and recognition of these costs in the income statement; however, the impact is not material. In addition, the Company is evaluating the standard’s expanded disclosure requirements. The Company has adopted this standard on January 1, 2018, utilizing the modified retrospective approach with a cumulative effect adjustment to opening retained earnings.

RECLASSIFICATION

Certain items previously reported have been reclassified to conform with the current year’s reporting presentation and are considered immaterial.

Business Combinations

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

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 earn out. The earn out, while not limited under the terms of the Asset Purchase Agreement, was 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 earn out was estimated, at closing, to be approximately $3.7 million based on the estimated annual run-rate EBITDA of TKG at December 31, 2016. The change to the earn out calculation from the estimated $3.7 million recorded at closing, was recorded in the statement of income during the year ended December 31, 2016.

The following table summarizes total consideration at closing, assets acquired and liabilities assumed for the TKG acquisition on April 29, 2016:



(Dollars in thousands)	TKG Acquisition
Consideration paid:
Cash	$	15,000
Estimated earn out, at closing	3,687
Fair value of total consideration, at closing	$	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
Long-lived amortizable intangible assets acquired	13,585
Goodwill	4,561
Total net assets purchased	$	18,687

During the year ended December 31, 2016, the fair value of the estimated acquisition earn out was decreased by $3.7 million based on management’s final determination of the annualized run-rate EBITDA of TKG at December 31, 2016. This adjustment to the earn out was credited to non-interest expense during the year ended December 31, 2016. There was no remaining acquisition earn out liability as of December 31, 2016.

In connection with the TKG acquisition, total acquisition-related transaction costs incurred by the Company was approximately $1,000 and $601,000 during the years ended December 31, 2016 and 2015, respectively, which were primarily comprised of legal, advisory and other costs.

Since the acquisition, the TKG acquired operations contributed approximate revenues of $7.2 million and approximate earnings of $1.4 million (excluding the earn out adjustment as discussed above) which were included in the consolidated statement of income for the year ended December 31, 2016.

Goodwill is not amortized for book purposes, but goodwill capitalized for tax purposes is deductible. 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 relationships	9,300		Indefinite life
Total intangibles assets	$	13,585

Investment Securities

12 Months Ended

Dec. 31, 2017

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

Investment securities available-for-sale and held-to-maturity were comprised of the following:



	December 31, 2017
(Dollars in thousands)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Estimated Fair Value
Investment securities available-for-sale:
Corporate bonds	$	61,616	$	216	$	143	$	61,689
Trust preferred securities	17,840		741		—		18,581
Non-agency collateralized loan obligations	811		—		6		805
Agency collateralized mortgage obligations	38,873		25		76		38,822
Agency mortgage-backed securities	19,007		96		150		18,953
Equity securities	8,910		—		275		8,635
Total investment securities available-for-sale	147,057		1,078		650		147,485
Investment securities held-to-maturity:
Corporate bonds	32,189		785		33		32,941
Agency debentures	1,984		3		—		1,987
Municipal bonds	25,102		122		11		25,213
Total investment securities held-to-maturity	59,275		910		44		60,141
Total	$	206,332	$	1,988	$	694	$	207,626



	December 31, 2016
(Dollars in thousands)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Estimated Fair Value
Investment securities available-for-sale:
Corporate bonds	$	53,902	$	164	$	21	$	54,045
Trust preferred securities	17,711		159		72		17,798
Non-agency mortgage-backed securities	5,750		14		—		5,764
Non-agency collateralized loan obligations	16,234		—		54		16,180
Agency collateralized mortgage obligations	44,051		49		279		43,821
Agency mortgage-backed securities	24,107		240		198		24,149
Agency debentures	4,760		23		—		4,783
Equity securities	8,643		—		291		8,352
Total investment securities available-for-sale	175,158		649		915		174,892
Investment securities held-to-maturity:
Corporate bonds	28,693		596		30		29,259
Municipal bonds	25,247		88		96		25,239
Total investment securities held-to-maturity	53,940		684		126		54,498
Total	$	229,098	$	1,333	$	1,041	$	229,390

The equity securities noted in the tables above consisted of a mutual fund investing in short-duration, corporate bonds.

Interest income on investment securities was as follows:



	Years Ended December 31,
(Dollars in thousands)	2017		2016		2015
Taxable interest income	$	4,896	$	4,213	$	2,975
Non-taxable interest income	452		452		409
Dividend income	869		778		638
Total interest income on investments	$	6,217	$	5,443	$	4,022

As of December 31, 2017, the contractual maturities of the debt securities were:



	December 31, 2017
	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	$	10,055	$	10,058	$	6,003	$	6,146
Due from one to five years	32,426		32,422		12,898		12,911
Due from five to ten years	29,186		29,547		39,466		40,164
Due after ten years	66,480		66,823		908		920
Total debt securities	$	138,147	$	138,850	$	59,275	$	60,141

The $66.8 million fair value of debt securities available-for-sale with a contractual maturity due after ten years as of December 31, 2017, included $57.1 million or 85.4% that are floating-rate securities. The $39.5 million amortized cost of debt securities held-to-maturity with a contractual maturity due from five to ten years as of December 31, 2017, included $20.8 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 and call of investment securities available-for-sale and held-to-maturity and related realized gains and losses were:



	Available-for-Sale						Held-to-Maturity
	Years Ended December 31,						Years Ended December 31,
(Dollars in thousands)	2017		2016		2015		2017		2016		2015
Proceeds from sales	$	2,527	$	4,691	$	11,792	$	—	$	—	$	—
Proceeds from calls	21,675		2,000		4,000		3,000		2,500		6,540
Total proceeds	$	24,202	$	6,691	$	15,792	$	3,000	$	2,500	$	6,540

Gross realized gains	$	297	$	34	$	50	$	15	$	46	$	—
Gross realized losses	2		3		17		—		—		—
Net realized gains (losses)	$	295	$	31	$	33	$	15	$	46	$	—

Investment securities available-for-sale of $4.0 million, as of December 31, 2017, 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 December 31, 2017 and December 31, 2016:



	December 31, 2017
	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	$	29,995	$	143	$	—	$	—	$	29,995	$	143
Non-agency collateralized loan obligations	—		—		805		6		805		6
Agency collateralized mortgage obligations	1,593		1		32,816		75		34,409		76
Agency mortgage-backed securities	2,960		10		9,437		140		12,397		150
Equity securities	—		—		8,635		275		8,635		275
Total investment securities available-for-sale	34,548		154		51,693		496		86,241		650
Investment securities held-to-maturity:
Corporate bonds	2,406		33		—		—		2,406		33
Municipal bonds	6,051		11		—		—		6,051		11
Total investment securities held-to-maturity	8,457		44		—		—		8,457		44
Total temporarily impaired securities ⁽¹⁾	$	43,005	$	198	$	51,693	$	496	$	94,698	$	694


⁽¹⁾	The number of investment positions with unrealized losses totaled 30 for available-for-sale securities and 8 for held-to-maturity securities.



	December 31, 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	$	10,543	$	21	$	—	$	—	$	10,543	$	21
Trust preferred securities	—		—		9,038		72		9,038		72
Non-agency collateralized loan obligations	6,191		50		9,990		4		16,181		54
Agency collateralized mortgage obligations	4,593		12		34,408		267		39,001		279
Agency mortgage-backed securities	12,292		198		—		—		12,292		198
Equity securities	—		—		8,352		291		8,352		291
Total investment securities available-for-sale	33,619		281		61,788		634		95,407		915
Investment securities held-to-maturity:
Corporate bonds	2,492		8		1,978		22		4,470		30
Municipal bonds	12,559		96		—		—		12,559		96
Total investment securities held-to-maturity	15,051		104		1,978		22		17,029		126
Total temporarily impaired securities ⁽¹⁾	$	48,670	$	385	$	63,766	$	656	$	112,436	$	1,041


⁽¹⁾	The number of investment positions with unrealized losses totaled 30 for available-for-sale securities and 18 for held-to-maturity securities.

The change in the fair values of our municipal bonds, agency debentures, agency collateralized mortgage obligations and agency mortgage-backed securities are primarily the result of interest rate fluctuations. To assess for credit impairment, 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 most recent 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 debt 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 temporarily impaired.

There were no investment securities classified as trading securities outstanding as of December 31, 2017 and December 31, 2016.

Federal Home Loan Bank Stock	12 Months Ended
Federal Home Loan Bank Stock	Dec. 31, 2017
Federal Home Loan Bank Stock [Abstract]
FEDERAL HOME LOAN BANK STOCK	FEDERAL HOME LOAN BANK STOCK The Company is a member of the FHLB system. As a member of the FHLB of Pittsburgh, the Company must maintain a minimum investment in the capital stock of the FHLB in an amount equal to 4.00% of its outstanding advances, 0.75% of its issued letters of credits, and 0.10% of its membership asset value, as defined, with the FHLB. The FHLB has the ability to change the calculation of the required stock investment at any time. The Company held stock totaling $13.8 million and $9.6 million at December 31, 2017 and 2016, respectively. At December 31, 2017, $12.6 million of stock was required based on the Bank’s membership asset value of approximately $742.2 million; $295.0 million in outstanding advances; and $6.7 million in issued letters of credit. The Company received dividends from its holdings in FHLB capital stock of $603,000, $494,000 and $389,000 for the years ended December 31, 2017, 2016 and 2015, respectively.

Loans

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

LOANS

The Company generates loans through the private banking and middle-market channels. These channels provide risk diversification and offer significant growth opportunities. The private banking channel primarily includes loans made to high-net-worth individuals, trusts and businesses that are typically secured by cash and marketable securities. 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 in our primary markets.

Loans held-for-investment were comprised of the following:



	December 31, 2017
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate			Total
Loans held-for-investment, before deferred fees and costs	$	2,261,625		$	667,028		$	1,254,184		$	4,182,837
Net deferred loan costs (fees)	4,112			656			(3,361		)	1,407
Loans held-for-investment, net of deferred fees and costs	2,265,737			667,684			1,250,823			4,184,244
Allowance for loan losses	(1,577		)	(8,043		)	(4,797		)	(14,417		)
Loans held-for-investment, net	$	2,264,160		$	659,641		$	1,246,026		$	4,169,827



	December 31, 2016
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate			Total
Loans held-for-investment, before deferred fees and costs	$	1,732,578		$	587,791		$	1,080,637		$	3,401,006
Net deferred loan costs (fees)	3,350			(368		)	(2,934		)	48
Loans held-for-investment, net of deferred fees and costs	1,735,928			587,423			1,077,703			3,401,054
Allowance for loan losses	(1,424		)	(12,326		)	(5,012		)	(18,762		)
Loans held-for-investment, net	$	1,734,504		$	575,097		$	1,072,691		$	3,382,292

The Company’s customers have unused loan commitments based on the availability of eligible collateral or other terms and conditions under the loan agreement. 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 December 31, 2017 and December 31, 2016, was $2.37 billion and $1.75 billion, respectively. The interest rate for each commitment is based on the prevailing market conditions at the time of funding. The reserve for losses on unfunded commitments was $504,000 and $650,000, as of December 31, 2017 and December 31, 2016, respectively, which includes reserves for probable losses on unfunded loan commitments, including standby letters of credit and also risk participations.

The total unfunded commitments above included loans in the process of origination totaling approximately $53.3 million and $59.8 million as of December 31, 2017 and December 31, 2016, 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 December 31, 2017 and December 31, 2016, included in the total unfunded commitments above, was $74.8 million and $77.4 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. During the year ended December 31, 2017 and 2016, there were draws on standby letters of credit totaling $204,000 and $151,000, respectively, which were immediately repaid by the borrower or converted to an outstanding loan based on the contractual terms and subsequently repaid. Most of these commitments are expected to expire without being drawn upon and the total amount does not necessarily represent future cash requirements. The potential 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.

As of December 31, 2017 and December 31, 2016, 90.5% and 91.1%, respectively, of the commercial loan portfolio was comprised of loans to customers within the Company’s primary market areas of Pennsylvania, Ohio, New Jersey, New York and contiguous states. As a result, the commercial loan portfolio is subject to the general economic conditions within those areas. The Company evaluates each customer’s creditworthiness on an individual basis. The amount of collateral obtained by the Company upon extension of credit is based on management’s credit evaluation of the borrower. The Company does not believe it has significant concentrations of credit risk to any one group of borrowers given its underwriting and collateral requirements.

The Company’s loan portfolio is comprised of amortizing loans, where scheduled principal and interest payments are applied according to the terms of the loan agreement, as well as interest-only loans. As of December 31, 2017 and December 31, 2016, interest-only loans represented 71.1% and 69.0% of the loans held-for-investment, respectively, of which the majority were lines of credit.

There were $2.09 billion in loans that are due on demand with no stated maturity and $2.09 billion in loans with stated maturities which have an expected average remaining maturity of approximately four years as of December 31, 2017, compared to $1.55 billion in loans that are due on demand with no stated maturity and $1.85 billion in loans with stated maturities which have an expected average remaining maturity of approximately four years as of December 31, 2016. As of December 31, 2017 and December 31, 2016, 90.9% and 88.6%, respectively, of the portfolio was comprised of variable rate loans.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Allowance for Loan Losses

12 Months Ended

Dec. 31, 2017

Allowance for Loan Losses [Abstract]

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 recorded in the consolidated statements of 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 at least 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: private banking, commercial and industrial and commercial real estate. In addition, management takes into account the historical loss experience of each loan portfolio, to ensure that the 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:

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. This portfolio also has some loans that are secured by residential real estate or other financial assets, 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 were 94.6% and 91.3% of total private banking loans as of December 31, 2017 and 2016, respectively.

Middle-Market Banking: Commercial and Industrial Loans

This loan portfolio primarily includes loans made to service companies or manufacturers generally for the purposes of financing production, operating capacity, accounts receivable, inventory, equipment, acquisitions and recapitalizations. Cash flow from the borrower’s operations is the primary source of repayment for these loans.

The borrower’s industry and local and regional economic conditions are important indicators of risk for this loan portfolio. Collateral for these types of loans at times does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt. 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, industrial, multifamily, retail, hospitality, healthcare and self-storage. The primary source of repayment for commercial real estate loans secured by owner-occupied properties is cash flow from the borrower’s operations. 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 commercial real estate loans secured by investment properties. 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 for 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 and collateral of the loans are important indicators of risk for this loan portfolio. Additional risks exist and are dependent on several factors such as the condition of the local and regional economies, whether or not the project is owner-occupied, the type of project, and the experience and resources of the developer.

On a monthly basis, management monitors various credit quality indicators for the loan portfolio, 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 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.

Loan risk ratings are assigned based upon the creditworthiness of the borrower and the quality of the collateral for loans secured by marketable securities. 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 that are risk rated as special mention, substandard and doubtful, which are believed to have an increasing risk of loss. Our internal risk ratings are consistent with regulatory guidance. Management also monitors the loan portfolio through a formal periodic review process. All non-pass rated loans are reviewed monthly and higher risk-rated loans within the pass category are reviewed three times a year.

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:



	December 31, 2017
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Pass	$	2,265,369	$	639,987	$	1,248,972	$	4,154,328
Special mention	—		24,882		1,851		26,733
Substandard	368		2,815		—		3,183
Loans held-for-investment	$	2,265,737	$	667,684	$	1,250,823	$	4,184,244



	December 31, 2016
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Pass	$	1,735,404	$	545,276	$	1,077,703	$	3,358,383
Special mention	—		18,776		—		18,776
Substandard	524		23,371		—		23,895
Loans held-for-investment	$	1,735,928	$	587,423	$	1,077,703	$	3,401,054

Changes in the allowance for loan losses were as follows for the years ended December 31, 2017, 2016 and 2015:



	Year Ended December 31, 2017
(Dollars in thousands)	Private Banking		Commercial and Industrial			Commercial Real Estate			Total
Balance, beginning of period	$	1,424	$	12,326		$	5,012		$	18,762
Provision (credit) for loan losses	153		(556		)	(220		)	(623		)
Charge-offs	—		(4,302		)	—			(4,302		)
Recoveries	—		575			5			580
Balance, end of period	$	1,577	$	8,043		$	4,797		$	14,417



	Year Ended December 31, 2016
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate			Total
Balance, beginning of period	$	1,566		$	11,064		$	5,344		$	17,974
Provision (credit) for loan losses	(142		)	4,723			(3,743		)	838
Charge-offs	—			(4,258		)	—			(4,258		)
Recoveries	—			797			3,411			4,208
Balance, end of period	$	1,424		$	12,326		$	5,012		$	18,762



	Year Ended December 31, 2015
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate		Total
Balance, beginning of period	$	2,017		$	13,501		$	4,755	$	20,273
Provision (credit) for loan losses	(464		)	(112		)	589		13
Charge-offs	—			(3,353		)	—		(3,353		)
Recoveries	13			1,028			—		1,041
Balance, end of period	$	1,566		$	11,064		$	5,344	$	17,974

The following tables present the age analysis of past due loans segregated by class of loan:



	December 31, 2017
(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
Private banking	$	1,266	$	—	$	—	$	1,266	$	2,264,471	$	2,265,737
Commercial and industrial	—		—		—		—		667,684		667,684
Commercial real estate	1,849		—		—		1,849		1,248,974		1,250,823
Loans held-for-investment	$	3,115	$	—	$	—	$	3,115	$	4,181,129	$	4,184,244



	December 31, 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
Private banking	$	—	$	—	$	224	$	224	$	1,735,704	$	1,735,928
Commercial and industrial	—		—		—		—		587,423		587,423
Commercial real estate	—		—		—		—		1,077,703		1,077,703
Loans held-for-investment	$	—	$	—	$	224	$	224	$	3,400,830	$	3,401,054

Non-Performing and Impaired Loans

Management monitors the delinquency status of the loan portfolio on a monthly basis. Loans are 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 Year Ended December 31, 2017
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With a related allowance recorded:
Private banking	$	368	$	541	$	368	$	438	$	—
Commercial and industrial	2,815		3,135		2,139		3,067		—
Commercial real estate	—		—		—		—		—
Total with a related allowance recorded	3,183		3,676		2,507		3,505		—
Without a related allowance recorded:
Private banking	—		—		—		—		—
Commercial and industrial	3,371		5,330		—		4,224		146
Commercial real estate	—		—		—		—		—
Total without a related allowance recorded	3,371		5,330		—		4,224		146
Total:
Private banking	368		541		368		438		—
Commercial and industrial	6,186		8,465		2,139		7,291		146
Commercial real estate	—		—		—		—		—
Total	$	6,554	$	9,006	$	2,507	$	7,729	$	146



	As of and for the Year Ended December 31, 2016
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With a related allowance recorded:
Private banking	$	517	$	656	$	517	$	592	$	—
Commercial and industrial	17,273		26,126		6,422		19,158		—
Commercial real estate	—		—		—		—		—
Total with a related allowance recorded	17,790		26,782		6,939		19,750		—
Without a related allowance recorded:
Private banking	—		—		—		—		—
Commercial and industrial	471		487		—		485		26
Commercial real estate	—		—		—		—		—
Total without a related allowance recorded	471		487		—		485		26
Total:
Private banking	517		656		517		592		—
Commercial and industrial	17,744		26,613		6,422		19,643		26
Commercial real estate	—		—		—		—		—
Total	$	18,261	$	27,269	$	6,939	$	20,235	$	26



	As of and for the Year 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:
Private banking	$	745	$	864	$	745	$	824	$	—
Commercial and industrial	11,797		19,204		3,800		15,331		—
Commercial real estate	—		—		—		—		—
Total with a related allowance recorded	12,542		20,068		4,545		16,155		—
Without a related allowance recorded:
Private banking	1,203		1,448		—		1,202		—
Commercial and industrial	513		1,789		—		838		29
Commercial real estate	2,912		9,067		—		3,108		—
Total without a related allowance recorded	4,628		12,304		—		5,148		29
Total:
Private banking	1,948		2,312		745		2,026		—
Commercial and industrial	12,310		20,993		3,800		16,169		29
Commercial real estate	2,912		9,067		—		3,108		—
Total	$	17,170	$	32,372	$	4,545	$	21,303	$	29

Impaired loans as of December 31, 2017 and December 31, 2016, were $6.6 million and $18.3 million, respectively. There was no interest income recognized while on non-accrual status for the years ended December 31, 2017, 2016 and 2015. As of December 31, 2017 and December 31, 2016, 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 there were specific reserves totaling $2.5 million and $6.9 million as of December 31, 2017 and December 31, 2016, respectively.

The following tables present the allowance for loan losses and recorded investment in loans by class:



	December 31, 2017
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Allowance for loan losses:
Individually evaluated for impairment	$	368	$	2,139	$	—	$	2,507
Collectively evaluated for impairment	1,209		5,904		4,797		11,910
Total allowance for loan losses	$	1,577	$	8,043	$	4,797	$	14,417

Loans held-for-investment:
Individually evaluated for impairment	$	368	$	6,186	$	—	$	6,554
Collectively evaluated for impairment	2,265,369		661,498		1,250,823		4,177,690
Loans held-for-investment	$	2,265,737	$	667,684	$	1,250,823	$	4,184,244



	December 31, 2016
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Allowance for loan losses:
Individually evaluated for impairment	$	517	$	6,422	$	—	$	6,939
Collectively evaluated for impairment	907		5,904		5,012		11,823
Total allowance for loan losses	$	1,424	$	12,326	$	5,012	$	18,762

Loans held-for-investment:
Individually evaluated for impairment	$	517	$	17,744	$	—	$	18,261
Collectively evaluated for impairment	1,735,411		569,679		1,077,703		3,382,793
Loans held-for-investment	$	1,735,928	$	587,423	$	1,077,703	$	3,401,054

Troubled Debt Restructuring

The following table provides additional information on the Company’s loans designated as troubled debt restructurings:



(Dollars in thousands)	December 31, 2017		December 31, 2016
Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring:
Accruing interest	$	3,371	$	471
Non-accrual	3,183		17,273
Total troubled debt restructurings	$	6,554	$	17,744

There were unused commitments of $708,000 and $121,000 on TDR loans as of December 31, 2017 and 2016, respectively.

The modifications made to restructured loans typically consist of an extension 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 payment defaults during the years ended December 31, 2017 and 2016, respectively. There were loans totaling $973,000 that were modified as a TDR within twelve months of the corresponding balance sheet date with payment defaults during the year ended December 31, 2015.

The financial effects of our modifications made to loans newly designated as TDRs during the years ended December 31, 2017, 2016 and 2015, were as follows:



	Year Ended December 31, 2017
(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
Private banking:
Extended term, deferred principal and reduced interest rate	2	$	433	$	368	$	433	$	368
Total	2	$	433	$	368	$	433	$	368



	Year Ended December 31, 2016
(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:
Extended term and deferred principal	2	$	11,098	$	11,081	$	2,354	$	3,274
Total	2	$	11,098	$	11,081	$	2,354	$	3,274



	Year Ended December 31, 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:
Deferred principal	2	$	6,849	$	973	$	1,500	$	172
Extended term and deferred principal	1	433		—		433		—
Change in interest terms	1	4,064		—		400		—
Total	4	$	11,346	$	973	$	2,333	$	172

Other Real Estate Owned

As of December 31, 2017 and December 31, 2016, the balance of the other real estate owned portfolio was $3.6 million and $4.2 million, respectively. Properties were sold from other real estate owned totaling $597,000 with net gains of $141,000 realized during the year ended December 31, 2017. There were no residential mortgage loans that were in the process of foreclosure as of December 31, 2017.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

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 year ended December 31, 2016, related to the TKG acquisition.

The following table presents the change in goodwill for the years ended December 31, 2017 and 2016:



(Dollars in thousands)	2017		2016
Balance, beginning of period	$	38,724	$	34,163
Additions	—		4,561
Balance, end of period	$	38,724	$	38,724

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 years ended December 31, 2017 and 2016:



(Dollars in thousands)	2017			2016
Balance, beginning of period	$	28,485		$	16,653
Additions	—			13,585
Amortization	(1,851		)	(1,753		)
Balance, end of period	$	26,634		$	28,485

The following table presents the gross amount of intangible assets and total accumulated amortization by class:



	December 31, 2017							December 31, 2016
(Dollars in thousands)	Gross Amount		Accumulated Amortization			Net Carrying Amount		Gross Amount		Accumulated Amortization			Net Carrying Amount
Trade name	$	4,040	$	(418	)	$	3,622	$	4,040	$	(245	)	$	3,795
Client Relationships:
Sub-advisory client list	11,530		(3,230		)	8,300		11,530		(2,371		)	9,159
Separate managed accounts client list	1,810		(505		)	1,305		1,810		(344		)	1,466
Other institutional client list	5,950		(2,074		)	3,876		5,950		(1,532		)	4,418
Non-compete agreements	465		(234		)	231		465		(118		)	347
Total finite-lived intangibles	23,795		(6,461		)	17,334		23,795		(4,610		)	19,185
Client Relationships:
Mutual fund client relationships (indefinite-lived)	9,300		—			9,300		9,300		—			9,300
Total intangibles assets	$	33,095	$	(6,461	)	$	26,634	$	33,095	$	(4,610	)	$	28,485

Intangible amortization expense on finite-lived intangible assets totaled $1.9 million, $1.8 million and $1.6 million for the years ended December 31, 2017, 2016 and 2015, respectively.

The following is a summary of the expected intangible amortization expense for finite-lived intangibles assets, assuming no new additions, for each of the five years following December 31, 2017:



(Dollars in thousands)	Amount
2018	$	1,835
2019	1,832
2020	1,767
2021	1,735
2022	1,735
Thereafter	8,430
Total finite-lived intangibles	$	17,334

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Office Properties and Equipment

12 Months Ended

Dec. 31, 2017

Office Properties and Equipment [Abstract]

OFFICE PROPERTIES AND EQUIPMENT

Following is a summary of office properties and equipment by major classification:



	December 31,
(Dollars in thousands)	2017			2016
Furniture, fixtures and equipment	$	9,812		$	9,057
Leasehold improvements	5,917			5,743
Total, at cost	15,729			14,800
Accumulated depreciation	(10,844		)	(9,329		)
Net office properties and equipment	$	4,885		$	5,471

Depreciation expense was $1.5 million, $1.3 million and $1.3 million for the years ended December 31, 2017, 2016 and 2015, respectively.

The Company rents office space in its six office locations which are accounted for as operating leases. The remaining lease terms have expirations from 2020 to 2024 and provide for one or more renewal options. These leases provide for annual rent escalations and payment of certain operating expenses applicable to the leased space. The Company records rent expense on a straight-line basis over the term of the lease. Rent expense was $2.2 million, $2.3 million and $2.3 million for the years ended December 31, 2017, 2016 and 2015, respectively. The net deferred rent liability was $877,000 as of December 31, 2017.

At December 31, 2017, future minimum lease payments were as follows:



(Dollars in thousands)	Amount
2018	$	2,563
2019	2,530
2020	2,480
2021	1,417
2022	870
Thereafter	907
Total	$	10,767

In conjunction with certain office leases the Company has received an allowance for leasehold improvements which is recognized as a reduction to rent expense over the life of the corresponding lease. The unamortized amount of the allowance for leasehold improvements was $969,000 as of December 31, 2017.

Deposits

12 Months Ended

Dec. 31, 2017

Deposits [Abstract]

DEPOSITS

As of December 31, 2017 and December 31, 2016, deposits were comprised of the following:



	Interest Rate Range	Weighted Average Interest Rate		Balance
(Dollars in thousands)	December 31, 2017	December 31, 2017	December 31, 2016	December 31, 2017		December 31, 2016
Demand and savings accounts:
Noninterest-bearing checking accounts	—	—	—	$	248,092	$	230,226
Interest-bearing checking accounts	0.05 to 1.75%	1.42%	0.56%	455,341		218,984
Money market deposit accounts	0.10 to 2.06%	1.37%	0.82%	2,289,789		1,938,707
Total demand and savings accounts				2,993,222		2,387,917
Certificates of deposit	0.80 to 2.13%	1.40%	0.95%	994,389		898,862
Total deposits				$	3,987,611	$	3,286,779
Weighted average rate on interest-bearing accounts		1.38%	0.84%

As of December 31, 2017 and December 31, 2016, the Bank had total brokered deposits of $1.07 billion and $1.06 billion, respectively. The amount for brokered deposits includes reciprocal Certificate of Deposit Account Registry Service^® (“CDARS^®”) and reciprocal Insured Cash Sweep^® (“ICS^®”) accounts totaling $627.5 million and $448.1 million as of December 31, 2017 and December 31, 2016, respectively.

As of December 31, 2017 and December 31, 2016, certificates of deposit with balances of $100,000 or more, excluding brokered deposits, totaled $440.2 million and $441.1 million, respectively. Certificates of deposit with balances of $250,000 or more, excluding brokered deposits, totaled $191.4 million and $178.1 million as of December 31, 2017 and December 31, 2016, respectively.

The contractual maturity of certificates of deposit was as follows:



(Dollars in thousands)	December 31, 2017		December 31, 2016
12 months or less	$	874,733	$	751,204
12 months to 24 months	96,766		121,011
24 months to 36 months	22,890		26,647
36 months to 48 months	—		—
48 months to 60 months	—		—
Over 60 months	—		—
Total	$	994,389	$	898,862

Interest expense on deposits was as follows:



	Years Ended December 31,
(Dollars in thousands)	2017		2016		2015
Interest-bearing checking accounts	$	3,706	$	813	$	439
Money market deposit accounts	22,350		11,376		5,687
Certificates of deposit	11,429		7,618		6,762
Total interest expense on deposits	$	37,485	$	19,807	$	12,888

Borrowings

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

BORROWINGS

As of December 31, 2017 and December 31, 2016, borrowings were comprised of the following:



	December 31, 2017				December 31, 2016
(Dollars in thousands)	Interest Rate	Ending Balance		Maturity Date	Interest Rate	Ending Balance		Maturity Date
FHLB borrowings:
Issued 12/29/2017	1.57%	$	195,000	1/2/2018		$	—
Issued 12/29/2017	1.66%	100,000		3/29/2018		—
Issued 12/30/2016		—			0.77%	105,000		1/3/2017
Issued 12/29/2016		—			0.85%	100,000		3/29/2017
Line of credit borrowings	4.56%	6,200		12/28/2018		—
Subordinated notes payable (net of debt issuance costs of $287 and $490, respectively)	5.75%	34,713		7/1/2019	5.75%	34,510		7/1/2019
Total borrowings, net		$	335,913			$	239,510

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 December 31, 2017, the Bank’s borrowing capacity is based on the information provided in the September 30, 2017, QCR filing. As of December 31, 2017, the Bank had securities held in safekeeping at the FHLB with a fair value of $4.0 million, combined with pledged loans of $1.11 billion, for a gross borrowing capacity of $788.8 million, of which $295.0 million was outstanding in advances. As of December 31, 2016, there was $205.0 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 December 31, 2017, the full amount of these established lines were available to the Bank.

The Holding Company maintains an unsecured line of credit of $25.0 million with Texas Capital Bank, of which $6.2 million was outstanding as of December 31, 2017.

In June 2014, the Company 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.

Interest expense on borrowings was as follows:



	Years Ended December 31,
(Dollars in thousands)	2017		2016		2015
FHLB borrowings	$	3,152	$	1,477	$	540
Line of credit borrowings	90		—		—
Subordinated notes payable	2,215		2,215		2,215
Total interest expense on borrowings	$	5,457	$	3,692	$	2,755

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

The income tax provision reconciled to taxes computed at the statutory federal rate was as follows:



	Years Ended December 31,
(Dollars in thousands)	2017			2016			2015
Tax provision at statutory rate	$	16,615		$	14,591		$	11,683
Meals and entertainment	152			147			103
Dues and subscriptions	142			132			116
Bank owned life insurance	(622		)	(629		)	(593		)
Stock option exercises and cancellations	(674		)	(484		)	52
State tax expense, net of federal benefit	1,024			1,184			951
Impact of change in tax rates	(2,351		)	—			—
Adjustments to prior year tax	215			46			(60		)
Tax exempt income, net of disallowed interest	(151		)	(162		)	(160		)
Renewable energy tax credits	(4,629		)	(1,778		)	(1,198		)
Low income housing tax credits	(260		)	(17		)	—
Other	21			18			(2		)
Income tax provision	$	9,482		$	13,048		$	10,892

In December 2017, the Tax Cuts and Jobs Act was signed into law which lowers the maximum corporate tax rate from 35% to 21%. Due to this enactment, income tax provision for the year ended December 31, 2017, was impacted by a $2.4 million one-time benefit on the re-measurement of the Company’s deferred tax liability. The adjustment was largely related to the acceleration of an incentive compensation deduction for tax purposes and favorable depreciation treatment associated with renewable energy credits.

The tax credits in the table above relate to transactions for the financing of renewable solar energy facilities as well as low income housing tax credits. These transactions provided federal tax credits and state tax credits (where applicable) during the 2017, 2016 and 2015 tax years. The financing of the solar energy facilities are accounted for as direct financing leases included within the C&I loan portfolio. The amortization of the Company’s low income housing tax credit investments has been reflected as income tax expense. The net amount of low income housing tax credits, amortization and tax benefits recorded as income tax expenses during the years ended December 31, 2017 and 2016, was $260,000 and $17,000, respectively. The carrying amount of the investment in low income housing tax credits was $23.8 million of which $18.1 million was unfunded as of December 31, 2017.

The income tax provision consisted of:



	Years Ended December 31,
(Dollars in thousands)	2017			2016		2015
Current income tax provision (benefit) - federal	$	(2,324	)	$	7,781	$	9,917
Current income tax provision - state	696			1,592		803
Deferred tax provision - federal	10,050			3,322		225
Deferred tax provision (benefit) - state	1,060			353		(53		)
Income tax provision	$	9,482		$	13,048	$	10,892

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2017 and 2016, were as follows:



	December 31,
(Dollars in thousands)	2017			2016
Deferred tax assets:
Net operating loss - state	$	200		$	—
Start-up expenses	65			134
Stock compensation	2,150			1,659
Compensation related accruals	779			6,599
Leasehold improvement	251			464
Allowance for loan loss	3,376			6,970
Long-term lease	205			361
Reserve for unfunded commitments	118			241
Supplemental executive retirement plan	824			1,116
Transaction costs	288			480
Intangibles	—			125
Earn out liability non-purchase accounting	374			606
Other	180			247
Gross deferred tax assets	8,810			19,002

Deferred tax liabilities:
Office properties and equipment	(6,947		)	(4,631		)
Deferred loan costs	(2,447		)	(2,934		)
Intangibles	(9		)	—
Goodwill	(3,003		)	(3,531		)
State capital shares tax liability	(101		)	(219		)
Unrealized gain on investments and derivatives	(455		)	(483		)
Gross deferred tax liability	(12,962		)	(11,798		)
Net deferred tax asset (liability)	$	(4,152	)	$	7,204

Management believes that, as of December 31, 2017, it is more likely than not that the deferred tax assets will be fully realized upon the generation of future taxable income. The Company has certain pre-tax state net operating loss carryforwards of $2.6 million which will expire in 2037.

The change in the net deferred tax asset or liability for the years ended December 31, 2017 and 2016, was detailed as follows:



	December 31,
(Dollars in thousands)	2017			2016
Deferred tax provision	$	(11,110	)	$	(3,675	)
Deferred tax impact from other comprehensive income	(246		)	(1,329		)
Deferred tax asset established related to acquisitions	—			22
Change in net deferred tax asset or liability	$	(11,356	)	$	(4,982	)

The Company considers uncertain tax positions that it has taken or expects to take on a tax return. The Company recognizes interest accrued and penalties (if any) related to unrecognized tax benefits in income tax expense. Tax years 2014 through 2017 remain subject to federal and state tax examinations, as of December 31, 2017. A federal tax examination of the 2015 tax year is currently in progress.

A reconciliation of the beginning and ending gross amounts of unrecognized tax benefits was as follows:



	December 31,
(Dollars in thousands)	2017		2016		2015
Beginning of year balance	$	599	$	353	$	—
Increases in prior period tax positions	18		26		142
Decreases in prior period tax positions	—		—		—
Increases in current period tax positions	127		220		211
Settlements	—		—		—
End of year balance	$	744	$	599	$	353

The total estimated unrecognized tax benefit that, if recognized, would affect the Company’s effective tax rate was approximately $620,000, $390,000 and $230,000 as of December 31, 2017, 2016 and 2015, respectively. The impact of interest and penalties was immaterial to the Company’s financial statements for the years ended December 31, 2017, 2016 and 2015. The Company does not expect changes in its unrecognized tax benefits in the next twelve months to have a material impact on its financial statements.

Regulatory Capital

12 Months Ended

Dec. 31, 2017

Regulatory Capital Requirements [Abstract]

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 December 31, 2017 and December 31, 2016, TriState Capital Holdings, Inc. and TriState Capital Bank exceeded all capital adequacy requirements to which they were subjected.

Financial depository institutions are categorized as well capitalized if they meet minimum capital ratios as set forth in the tables below. 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 in the tables below.

Basel III, which began phasing in on January 1, 2015, has replaced the 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 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). As of December 31, 2017 and December 31, 2016, the capital conservation buffer was 1.25% and 0.625%, respectively, in addition to the minimum capital adequacy levels in the tables below. Thus, both the Company and the Bank were above the levels required to avoid limitations on capital distributions and discretionary bonus payments.

The following tables set forth certain information concerning the Company’s and the Bank’s regulatory capital as of December 31, 2017 and December 31, 2016:



	December 31, 2017
	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	$	343,758	11.72	%	$	234,576	8.00	%	N/A		N/A
Bank	$	348,378	11.99	%	$	232,392	8.00	%	$	290,490	10.00	%
Tier 1 risk-based capital ratio
Company	$	326,594	11.14	%	$	175,932	6.00	%	N/A		N/A
Bank	$	337,656	11.62	%	$	174,294	6.00	%	$	232,392	8.00	%
Common equity tier 1 risk-based capital ratio
Company	$	326,594	11.14	%	$	131,949	4.50	%	N/A		N/A
Bank	$	337,656	11.62	%	$	130,720	4.50	%	$	188,818	6.50	%
Tier 1 leverage ratio
Company	$	326,594	7.25	%	$	180,090	4.00	%	N/A		N/A
Bank	$	337,656	7.55	%	$	178,979	4.00	%	$	223,723	5.00	%



	December 31, 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	$	325,122	12.66	%	$	205,488	8.00	%	N/A		N/A
Bank	$	314,419	12.39	%	$	203,030	8.00	%	$	253,787	10.00	%
Tier 1 risk-based capital ratio
Company	$	295,089	11.49	%	$	154,116	6.00	%	N/A		N/A
Bank	$	298,093	11.75	%	$	152,272	6.00	%	$	203,030	8.00	%
Common equity tier 1 risk-based capital ratio
Company	$	295,089	11.49	%	$	115,587	4.50	%	N/A		N/A
Bank	$	298,093	11.75	%	$	114,204	4.50	%	$	164,962	6.50	%
Tier 1 leverage ratio
Company	$	295,089	7.90	%	$	149,369	4.00	%	N/A		N/A
Bank	$	298,093	8.04	%	$	148,252	4.00	%	$	185,316	5.00	%

- Definition

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1G
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958577-112826

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1C
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958572-112826

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1E
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958574-112826

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1H
-URI http://asc.fasb.org/extlink&oid=84167132&loc=d3e65071-112826

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958569-112826

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958570-112826

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1F
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958575-112826

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958568-112826

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1D
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958573-112826

+ Details

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2017
Retirement Benefits [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 years ended December 31, 2017, 2016 and 2015, the Company automatically contributed three percent of the eligible 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 $863,000, $788,000 and $683,000 for the years ended December 31, 2017, 2016 and 2015, respectively. 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 latter of retirement or 60 months. For the years ended December 31, 2017, 2016 and 2015, the Company recorded expense related to SERP of $513,000, $919,000 and $791,000, respectively, utilizing a discount rate of 3.59%, 2.15% and 2.98%, respectively. The recorded liability related to the SERP plan was $3.5 million and $3.0 million as of December 31, 2017 and December 31, 2016, respectively.

Stock Transactions

12 Months Ended

Dec. 31, 2017

Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]

STOCK TRANSACTIONS

Under programs authorized by the Board of Directors in 2016 and 2017, the Company was permitted to repurchase up to $20 million of its common stock, which has been fully utilized as of December 31, 2017. The Board also authorized the Company to utilize some of the share repurchase program authorizations to cancel options granted by the Company to purchase shares of its common stock that would have expired in 2017.

During the year ended December 31, 2017, the Company repurchased a total of 376,641 shares for approximately $8.7 million, at an average cost of $23.03 per share, which are held as treasury stock.

During the year ended December 31, 2016, the Company repurchased a total of 374,729 shares for approximately $5.1 million, at an average cost of $13.68 per share, which are held as treasury stock.

In 2016, the Company’s Board of Directors approved a stock option cancellation program to allow for outstanding and vested stock option awards granted in 2007 and expiring in 2017 to be canceled by the option holder at a price based on the closing day’s stock price less the option exercise price. During the year ended December 31, 2016, there were 1,174,500 options canceled for $6.2 million, which was recorded as a reduction to additional paid-in capital.

Under prior programs authorized by the Board of Directors, the Company repurchased a total of 321,109 shares for approximately $3.2 million, at an average cost of $9.84 per share, during the year ended December 31, 2015.

The table below shows 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	282,916
Forfeitures of restricted common stock	(4,000	)
Exercise of stock options	37,500
Purchase of treasury stock	(321,109	)
Balance, December 31, 2015	28,056,195
Issuance of restricted common stock	497,309
Forfeitures of restricted common stock	(13,121	)
Exercise of stock options	250,000
Purchase of treasury stock	(374,729	)
Balance, December 31, 2016	28,415,654
Issuance of restricted common stock	396,175
Forfeitures of restricted common stock	(14,637	)
Exercise of stock options	170,550
Purchase of treasury stock	(376,641	)
Balance, December 31, 2017	28,591,101

Earnings Per Common Share

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

The computation of basic and diluted earnings per common share for the periods presented was as follows:



	Years Ended December 31,
(Dollars in thousands, except per share data)	2017		2016		2015

Net income available to common shareholders	$	37,988	$	28,641	$	22,488

Weighted average common shares outstanding:
Basic	27,550,833		27,593,725		27,771,345
Restricted stock - dilutive	649,956		260,799		56,364
Stock options - dilutive	510,533		504,628		409,744
Diluted	28,711,322		28,359,152		28,237,453

Earnings per common share:
Basic	$	1.38	$	1.04	$	0.81
Diluted	$	1.32	$	1.01	$	0.80


⁽¹⁾	Includes stock options and/or restricted stock not considered for the calculation of diluted EPS as their inclusion would have been anti-dilutive.

Stock-Based Compensation Programs

12 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION PROGRAMS

The Company’s 2006 Stock Option Plan (the “2006 Plan”) provided for the granting of incentive and non-qualifying stock options to the Company’s key employees, key contractors and outside directors at the discretion of the Board of Directors. The Omnibus Incentive Plan (the “Omnibus Plan”), which was approved by TriState Capital’s shareholders on May 20, 2014, provides for the granting of incentive and non-qualifying stock options, stock appreciation rights, restricted shares, restricted stock units, dividend equivalent rights and other equity-based or equity-related awards to the Company’s key employees, key contractors and outside directors at the discretion of the Board of Directors. The Omnibus Plan, upon its approval, replaced the 2006 Plan. The total number of shares of common stock that may be granted under the Omnibus Plan is the number of authorized shares of common stock of TriState Capital remaining available under the 2006 Plan as of the date of shareholder approval, plus any shares of common stock issued pursuant to the 2006 Plan that were forfeited, canceled, expired or otherwise terminated. The shares reserved for grants under the 2006 Plan shall no longer be available for grants under that plan, but shall instead be reserved for grants under the Omnibus Plan.

The total common shares, authorized by shareholders of the Company, relating to stock-based awards which may be issued upon the grant or exercise of stock-based awards was 4,000,000, as of December 31, 2017, under both the 2006 Plan and the Omnibus Plan (combined the “Plans”). As of December 31, 2017, the Company has issued non-qualifying stock options and restricted shares. The aggregate awards outstanding were 2,084,186 under both of the Plans. 526,849 stock options and restricted shares have been exercised or vested, respectively, leaving 1,388,965 additional awards available for the Company to grant under the Omnibus Plan as of December 31, 2017.

The Company’s stock option grants contain terms that provide for a graded vesting schedule whereby portions of the options vest in increments over the requisite service period. Options issued under the Plans typically vest either 50 percent after two and one-half years following the award date and the remaining 50 percent five years following the award date; or 100 percent after five years following the award date. Restricted shares under the Omnibus Plan typically vest 100 percent after three years following the award date. The Company recognizes compensation expense for awards with graded vesting schedules on a straight-line basis over the requisite service period for the entire grant. The Company’s compensation expense for all awards was $5.9 million, $3.6 million and $1.9 million for the years ended December 31, 2017, 2016 and 2015, respectively.

In 2016 and 2015, the Company’s Board of Directors approved stock option cancellation programs to allow for outstanding and vested stock option awards granted in 2007 to be canceled by the option holder at a price based on the closing day’s stock price less the option exercise price. During the year ended December 31, 2016, there were 1,174,500 options canceled for $6.2 million, which was recorded as a reduction to additional paid-in capital. During the year ended December 31, 2015, there were 77,000 options canceled for $229,000, which was recorded as a reduction to additional paid-in capital.

Stock Options

The fair value of each option award is estimated on the date of the grant using the Black-Scholes option pricing model. Expected term was calculated utilizing the simplified method because the Company has limited historical exercise behavior. Since the Company is newly publicly traded and there is not enough trading history, expected volatility is computed based on median historical volatility of similar entities with publicly traded shares. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The computation assumes that there will be no dividends paid to common shareholders during the contractual life of the options.

There were no stock options granted for the year ended December 31, 2017. The weighted average assumptions for stock options granted for the years ended December 31, 2016 and 2015, were as follows:



	December 31,
	2016		2015
Valuation Assumptions:
Expected dividend yield	0.0	%	0.0	%
Expected volatility	35.9	%	45.4	%
Expected term (years)	6.9		6.9
Risk-free interest rate	1.7	%	1.6	%

Stock option activity during the periods indicated was as follows:



	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)
Balance, December 31, 2014	2,509,732	$	10.28	4.52
Granted	205,661	10.39
Exercised	37,500	9.41
Forfeited	41,500	10.75
Canceled	77,000	10.00
Expired	—	—
Balance, December 31, 2015	2,559,393	$	10.30	3.98
Granted	22,000	12.07
Exercised	250,000	10.69
Forfeited	23,500	11.77
Canceled	1,174,500	10.00
Expired	—	—
Balance, December 31, 2016	1,133,393	$	10.53	5.76
Granted	—	—
Exercised	170,550	9.75
Forfeited	16,500	10.30
Canceled	—	—
Expired	—	—
Balance, December 31, 2017	946,343	$	10.67	5.01

Exercisable as of December 31, 2015	1,789,750	$	9.99	2.28
Exercisable as of December 31, 2016	575,116	$	10.01	4.32
Exercisable as of December 31, 2017	617,646	$	10.16	4.25

The weighted average grant date fair value of options granted during the years ended December 31, 2016 and 2015, was $5.14 and $4.98, respectively. The weighted average grant date fair value of options exercised during the years ended December 31, 2017, 2016 and 2015 was $4.69, $4.85 and $4.38, respectively.

A summary of the status of the Company’s non-vested options as of and changes during the years ended December 31, 2017, 2016 and 2015, is presented below:



Non-vested options:	Number of Options	Weighted Average Grant-Date Fair Value
Balance, December 31, 2014	816,232	$	4.87
Granted	205,661	4.98
Vested	210,750	5.91
Forfeited	41,500	4.85
Balance, December 31, 2015	769,643	$	4.93
Granted	22,000	5.14
Vested	209,866	3.73
Forfeited	23,500	5.16
Balance, December 31, 2016	558,277	$	4.95
Granted	—	—
Vested	213,080	4.97
Forfeited	16,500	4.99
Balance, December 31, 2017	328,697	$	4.94

As of December 31, 2017, there was $793,000 of total unrecognized compensation cost related to non-vested options granted under the Plans and the unrecognized compensation cost is expected to be recognized over a weighted average period of 1.6 years.

Restricted Shares

A summary of the status of the Company’s non-vested restricted shares as of and changes during the years ended December 31, 2017, 2016 and 2015, is presented below:



Non-vested restricted shares:	Number of Shares	Weighted Average Grant-Date Fair Value
Balance, December 31, 2014	27,000	$	10.66
Granted	282,916	10.54
Vested	—	—
Forfeited	4,000	10.57
Balance, December 31, 2015	305,916	$	10.55
Granted	497,309	12.96
Vested	6,799	11.95
Forfeited	13,121	11.76
Balance, December 31, 2016	783,305	$	12.05
Granted	396,175	22.07
Vested	27,000	10.66
Forfeited	14,637	13.87
Balance, December 31, 2017	1,137,843	$	15.54

As of December 31, 2017, there was $10.4 million of total unrecognized compensation cost related to non-vested restricted shares granted under the Omnibus Plan and the unrecognized compensation cost is expected to be recognized over a weighted average period of 2.1 years.

Derivatives and Hedging Activity

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 December 31, 2017 and December 31, 2016:



	Asset Derivatives			Liability Derivatives
	as of December 31, 2017			as of December 31, 2017
(Dollars in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate products	Other assets	$	1,650	Other liabilities	$	9
Derivatives not designated as hedging instruments:
Interest rate products	Other assets	12,111		Other liabilities	12,069

Total	Other assets	$	13,761	Other liabilities	$	12,078



	Asset Derivatives			Liability Derivatives
	as of December 31, 2016			as of December 31, 2016
(Dollars in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate products	Other assets	$	1,793	Other liabilities	$	80
Derivatives not designated as hedging instruments:
Interest rate products	Other assets	10,324		Other liabilities	10,529

Total	Other assets	$	12,117	Other liabilities	$	10,609

The following tables show the impact legally enforceable master netting agreements had on the Company’s derivative financial instruments as of December 31, 2017:



	Offsetting of Derivative Assets
	December 31, 2017
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position					Net Amount

(Dollars in thousands)							Financial Instruments			Cash Collateral Received
Derivatives	$	13,761	$	—	$	13,761	$	(5,677	)	$	—	$	8,084



	Offsetting of Derivative Liabilities
	December 31, 2017
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position						Net Amount

(Dollars in thousands)							Financial Instruments			Cash Collateral Posted
Derivatives	$	12,078	$	—	$	12,078	$	(5,677	)	$	(124	)	$	6,277

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 December 31, 2017, the Company had four interest rate swaps, with an aggregate notional amount of $2.4 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 and credit risk was considered insignificant for the years ended December 31, 2017 and 2016. There were no counterparty default losses on derivatives for the years ended December 31, 2017 and 2016.

For the 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 table below presents the effect of the Company’s fair value hedge instruments in the consolidated statements of income:



		Years Ended December 31,
(Dollars in thousands)		2017			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	$	(60	)	$	(88	)	$	(294	)
Interest rate products	Non-interest income	4			4			3
Total		$	(56	)	$	(84	)	$	(291	)

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. In June 2016, the Company entered into derivative contracts to hedge the variable cash flows associated with certain FHLB borrowings. These 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. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company’s cash flow hedge derivatives did not have any hedge ineffectiveness recognized in earnings during the years ended December 31, 2017 and 2016.

As of December 31, 2017, the Company had two outstanding interest rate derivatives with an aggregate notional amount of $100.0 million that were designated as cash flow hedges of interest rate risk. During the years ended December 31, 2017 and 2016, net gains of $287,000 and $1.8 million, respectively, were recognized in accumulated other comprehensive income (loss) on the effective portion of the derivative.

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 $1.0 million to be reclassified to earnings as a decrease to interest expense. The Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a remaining period of 18 months.

The table below presents the effect of the Company’s cash flow hedge instruments in the consolidated statements of income:



		Years Ended December 31,
(Dollars in thousands)		2017		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 expense	$	371	$	(43	)	$	—
Total		$	371	$	(43	)	$	—

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 December 31, 2017, the Company had 316 derivative transactions with an aggregate notional amount of $1.43 billion related to this program.

The table below presents the effect of the Company’s non-designated hedge instruments in the consolidated statements of income:



		Years Ended December 31,
(Dollars in thousands)		2017			2016		2015
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	$	(1	)	$	528	$	(174	)
Total		$	(1	)	$	528	$	(174	)

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 December 31, 2017, the termination value of derivatives for which we had master netting arrangements with the counterparty and in a net liability position was $152,000, including accrued interest. As of December 31, 2017, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $4.9 million. If the Company had breached any of these provisions as of December 31, 2017, it could have been required to settle its obligations under the agreements at their termination value.

Disclosures about Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

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 December 31, 2017 and December 31, 2016:



	December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets / Liabilities at Fair Value
Financial assets:
Investment securities available-for-sale:
Corporate bonds	$	—	$	61,689	$	—	$	61,689
Trust preferred securities	—		18,581		—		18,581
Non-agency collateralized loan obligations	—		805		—		805
Agency collateralized mortgage obligations	—		38,822		—		38,822
Agency mortgage-backed securities	—		18,953		—		18,953
Equity securities	8,635		—		—		8,635
Interest rate swaps	—		13,761		—		13,761
Total financial assets	$	8,635	$	152,611	$	—	$	161,246

Financial liabilities:
Interest rate swaps	$	—	$	12,078	$	—	$	12,078
Total financial liabilities	$	—	$	12,078	$	—	$	12,078



	December 31, 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	$	—	$	54,045	$	—	$	54,045
Trust preferred securities	—		17,798		—		17,798
Non-agency mortgage-backed securities	—		5,764		—		5,764
Non-agency collateralized loan obligations	—		16,180		—		16,180
Agency collateralized mortgage obligations	—		43,821		—		43,821
Agency mortgage-backed securities	—		24,149		—		24,149
Agency debentures	—		4,783		—		4,783
Equity securities	8,352		—		—		8,352
Interest rate swaps	—		12,117		—		12,117
Total financial assets	$	8,352	$	178,657	$	—	$	187,009

Financial liabilities:
Interest rate swaps	$	—	$	10,609	$	—	$	10,609
Total financial liabilities	$	—	$	10,609	$	—	$	10,609

INVESTMENT SECURITIES

Generally, debt securities are valued using pricing for similar securities, recently executed transactions and other pricing models utilizing observable inputs and therefore are classified as Level 2. Equity securities (including mutual funds) are classified as Level 1 because these securities are in actively traded markets.

INTEREST RATE SWAPS

The fair value of interest rate swaps 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 December 31, 2017 and December 31, 2016:



	December 31, 2017
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets at Fair Value
Loans measured for impairment, net	$	—	$	—	$	4,047	$	4,047
Other real estate owned	—		—		3,576		3,576
Total assets	$	—	$	—	$	7,623	$	7,623



	December 31, 2016
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets at Fair Value
Loans measured for impairment, net	$	—	$	—	$	10,851	$	10,851
Other real estate owned	—		—		4,178		4,178
Total assets	$	—	$	—	$	15,029	$	15,029

As of December 31, 2017 and December 31, 2016, the Company recorded $2.5 million and $6.9 million, respectively, of specific reserves to the 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 flow 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 recoverable 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 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 recoverable 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 December 31, 2017 and December 31, 2016:



	December 31, 2017
(Dollars in thousands)	Fair Value		Valuation Techniques ⁽¹⁾	Significant Unobservable Inputs	Weighted Average Discount Rate
Loans measured for impairment, net	$	676	Appraisal value	Discount due to salability conditions	—	%

Loans measured for impairment, net	$	3,371	Discounted cash flow	Discount due to restructured nature of operations	6	%

Other real estate owned	$	3,576	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, 2016
(Dollars in thousands)	Fair Value		Valuation Techniques ⁽¹⁾	Significant Unobservable Inputs	Weighted Average Discount Rate
Loans measured for impairment, net	$	10,851	Discounted cash flow	Discount due to restructured nature of operations	6	%

Other real estate owned	$	4,178	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.

FAIR VALUE OF FINANCIAL INSTRUMENTS

A summary of the carrying amounts and estimated fair values of financial instruments was as follows:



	December 31, 2017					December 31, 2016
(Dollars in thousands)	Fair Value Level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	1	$	156,153	$	156,153	$	103,994	$	103,994
Investment securities available-for-sale: debt	2	138,850		138,850		166,540		166,540
Investment securities available-for-sale: equity	1	8,635		8,635		8,352		8,352
Investment securities held-to-maturity	2	59,275		60,141		53,940		54,498
Federal Home Loan Bank stock	2	13,792		13,792		9,641		9,641
Loans held-for-investment, net	3	4,169,827		4,167,775		3,382,292		3,362,031
Accrued interest receivable	2	13,519		13,519		9,614		9,614
Investment management fees receivable, net	2	7,720		7,720		7,749		7,749
Bank owned life insurance	2	66,593		66,593		64,815		64,815
Other real estate owned	3	3,576		3,576		4,178		4,178
Interest rate swaps	2	13,761		13,761		12,117		12,117

Financial liabilities:
Deposits	2	$	3,987,611	$	3,985,883	$	3,286,779	$	3,286,553
Borrowings, net	2	335,913		336,051		239,510		240,143
Interest rate swaps	2	12,078		12,078		10,609		10,609

During the years ended December 31, 2017, 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 December 31, 2017 and December 31, 2016:

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 carried at cost, 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 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 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 deposits 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 borrowings is calculated by discounting scheduled cash flows through the estimated maturity using period end market rates for borrowings of similar remaining maturities.

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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Changes in Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table shows the changes in accumulated other comprehensive income (loss) net of tax, for the periods presented:



	Years Ended December 31,
	2017									2016								2015
(Dollars in thousands)	Investment Securities			Derivatives			Total			Investment Securities			Derivatives		Total			Investment Securities			Derivatives		Total
Balance, beginning of period	$	(297	)	$	1,127		$	830		$	(1,443	)	$	—	$	(1,443	)	$	(627	)	$	—	$	(627	)
Change in unrealized holding gains (losses)	655			180			835			1,166			1,100		2,266			(795		)	—		(795		)
Losses (gains) reclassified from other comprehensive income	(186		)	(233		)	(419		)	(20		)	27		7			(21		)	—		(21		)
Net other comprehensive income (loss)	469			(53		)	416			1,146			1,127		2,273			(816		)	—		(816		)
Balance, end of period	$	172		$	1,074		$	1,246		$	(297	)	$	1,127	$	830		$	(1,443	)	$	—	$	(1,443	)

Related Party Transactions

12 Months Ended

Dec. 31, 2017

RELATED PARTY TRANSACTIONS

Certain directors and executive officers have loan and deposit accounts with the Bank. Such loans and deposits were made in the ordinary course of business on substantially the same terms, including interest rates, as those prevailing at the time for comparable transactions with outsiders. As of December 31, 2017, the Bank had four loans outstanding to directors totaling $12.2 million. As of December 31, 2017, the Bank had deposits outstanding from directors, executive officers and their related interests totaling $15.8 million.

During the years ended December 31, 2017, 2016 and 2015, the Bank obtained services from affiliated companies of certain directors in the normal course of business as outlined below:



(Dollars in thousands)			Years Ended December 31,
Related Party	Affiliation	Nature of Transaction	2017		2016		2015
Voyager Jet Center	Owned by a director	Aircraft charter	$	109	$	104	$	73
Total			$	109	$	104	$	73

Contingent Liabilities	12 Months Ended
Contingent Liabilities	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
CONTINGENT LIABILITIES	CONTINGENT LIABILITIES The Company is not 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.

Condensed Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS

The following condensed statements of financial condition of the parent company as of December 31, 2017 and 2016, and the related condensed statements of income and cash flows for the years ended December 31, 2017, 2016 and 2015, should be read in conjunction with our Consolidated Financial Statements and related notes:



CONDENSED STATEMENTS OF FINANCIAL CONDITION
PARENT COMPANY ONLY
	December 31,
(Dollars in thousands)	2017		2016
ASSETS

Cash and cash equivalents	$	3,986	$	4,728
Investment securities available-for-sale	8,635		8,352
Investment in subsidiaries	418,189		374,577
Prepaid expenses and other assets	541		892
Total assets	$	431,351	$	388,549

LIABILITIES AND SHAREHOLDERS’ EQUITY

Borrowings, net	$	40,913	$	34,510
Other accrued expenses and other liabilities	1,367		2,232
Shareholders’ equity	389,071		351,807
Total liabilities and shareholders’ equity	$	431,351	$	388,549



CONDENSED STATEMENTS OF INCOME
PARENT COMPANY ONLY
	Years Ended December 31,
(Dollars in thousands)	2017			2016			2015
Interest income	$	279		$	301		$	268
Dividends received from subsidiaries	3,000			23,100			2,510
Total interest and dividend income	3,279			23,401			2,778
Interest expense	2,305			2,215			2,215
Net interest income	974			21,186			563
Non-interest income	—			—			—
Non-interest expense	371			370			91
Income before income taxes and undisbursed income of subsidiaries	603			20,816			472
Income tax expense (benefit)	(251		)	(877		)	68
Income before undisbursed income of subsidiaries	854			21,693			404
Undisbursed income of subsidiaries	37,134			6,948			22,084
Net income	$	37,988		$	28,641		$	22,488



CONDENSED STATEMENTS OF CASH FLOWS
PARENT COMPANY ONLY
	Years Ended December 31,
(Dollars in thousands)	2017			2016			2015
Cash Flows from Operating Activities:
Net income	$	37,988		$	28,641		$	22,488
Adjustments to reconcile net income to net cash provided by operating activities:
Undisbursed income of subsidiaries	(37,134		)	(6,948		)	(22,084		)
Amortization of deferred financing costs	203			202			203
Increase (decrease) in accrued interest payable	19			—			(143		)
Decrease (increase) in other assets	238			(913		)	587
Increase (decrease) in other liabilities	(777		)	776			532
Net cash provided by operating activities	537			21,758			1,583
Cash Flows from Investing Activities:
Purchase of investment securities available-for-sale	(267		)	(285		)	(248		)
Net payments for investments in subsidiaries	(200		)	(13,030		)	(12,600		)
Net cash used in investing activities	(467		)	(13,315		)	(12,848		)
Cash Flows from Financing Activities:
Net increase in line of credit advances	6,200			—			—
Net proceeds from exercise of stock options	1,663			2,674			353
Cancellation of stock options	—			(6,200		)	(229		)
Purchase of treasury stock	(8,675		)	(5,125		)	(3,158		)
Net cash used in financing activities	(812		)	(8,651		)	(3,034		)
Net change in cash and cash equivalents	(742		)	(208		)	(14,299		)
Cash and cash equivalents at beginning of year	4,728			4,936			19,235
Cash and cash equivalents at end of year	$	3,986		$	4,728		$	4,936

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References + Details

Segments

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

SEGMENTS

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


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


•	The Investment Management segment provides advisory and sub-advisory investment management services primarily to institutional investors, mutual funds and individual investors through the Chartwell Investment Partners, LLC subsidiary. It also supports 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 general operating activity of the Company not considered to be a reportable segment, 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)	December 31, 2017		December 31, 2016
Assets:
Bank	$	4,691,760	$	3,846,353
Investment management	84,714		85,072
Parent and other	1,423		(968		)
Total assets	$	4,777,897	$	3,930,457



	Year Ended December 31, 2017
(Dollars in thousands)	Bank			Investment Management		Parent and Other			Consolidated
Income statement data:
Interest income	$	134,029		$	—	$	266		$	134,295
Interest expense	40,649			—		2,293			42,942
Net interest income (loss)	93,380			—		(2,027		)	91,353
Provision (credit) for loan losses	(623		)	—		—			(623		)
Net interest income (loss) after provision for loan losses	94,003			—		(2,027		)	91,976
Non-interest income:
Investment management fees	—			37,309		(209		)	37,100
Net gain on the sale and call of investment securities	310			—		—			310
Other non-interest income	9,554			2		—			9,556
Total non-interest income	9,864			37,311		(209		)	46,966
Non-interest expense:
Intangible amortization expense	—			1,851		—			1,851
Other non-interest expense	59,073			30,387		161			89,621
Total non-interest expense	59,073			32,238		161			91,472
Income (loss) before tax	44,794			5,073		(2,397		)	47,470
Income tax expense (benefit)	9,211			522		(251		)	9,482
Net income (loss)	$	35,583		$	4,551	$	(2,146	)	$	37,988



	Year Ended December 31, 2016
(Dollars in thousands)	Bank		Investment Management			Parent and Other			Consolidated
Income statement data:
Interest income	$	98,027	$	—		$	285		$	98,312
Interest expense	21,300		—			2,199			23,499
Net interest income (loss)	76,727		—			(1,914		)	74,813
Provision for loan losses	838		—			—			838
Net interest income (loss) after provision for loan losses	75,889		—			(1,914		)	73,975
Non-interest income:
Investment management fees	—		37,258			(223		)	37,035
Net gain on the sale and call of investment securities	77		—			—			77
Other non-interest income	9,393		3			—			9,396
Total non-interest income	9,470		37,261			(223		)	46,508
Non-interest expense:
Intangible amortization expense	—		1,753			—			1,753
Change in fair value of acquisition earn out	—		(3,687		)	—			(3,687		)
Other non-interest expense	52,676		27,905			147			80,728
Total non-interest expense	52,676		25,971			147			78,794
Income (loss) before tax	32,683		11,290			(2,284		)	41,689
Income tax expense (benefit)	9,568		4,357			(877		)	13,048
Net income (loss)	$	23,115	$	6,933		$	(1,407	)	$	28,641



	Year Ended December 31, 2015
(Dollars in thousands)	Bank		Investment Management			Parent and Other			Consolidated
Income statement data:
Interest income	$	83,347	$	—		$	249		$	83,596
Interest expense	13,448		—			2,195			15,643
Net interest income (loss)	69,899		—			(1,946		)	67,953
Provision for loan losses	13		—			—			13
Net interest income (loss) after provision for loan losses	69,886		—			(1,946		)	67,940
Non-interest income:
Investment management fees	—		29,814			(196		)	29,618
Net gain on the sale and call of investment securities	33		—			—			33
Other non-interest income	5,840		(8		)	—			5,832
Total non-interest income	5,873		29,806			(196		)	35,483
Non-interest expense:
Intangible amortization expense	—		1,558			—			1,558
Other non-interest expense	47,186		21,403			(104		)	68,485
Total non-interest expense	47,186		22,961			(104		)	70,043
Income (loss) before tax	28,573		6,845			(2,038		)	33,380
Income tax expense (benefit)	8,347		2,477			68			10,892
Net income (loss)	$	20,226	$	4,368		$	(2,106	)	$	22,488

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS In January 2018, the Company’s Board of Directors approved a new share repurchase program of up to $5 million. Under the authorization, purchases of shares may be made at the discretion of management from time to time in the open market or through negotiated transactions. On January 24, 2018, TriState Capital Holdings, Inc. entered into a definitive agreement to acquire the clients and client contracts and certain other assets of the fixed income business and equity business of Columbia Partners, L.L.C., Investment Management (“Columbia Partners”). Institutional accounts with up to $1 billion in client assets under management are expected to move from Columbia Partners to Chartwell upon closing of the transaction. Columbia Partners and the board of directors of TriState Capital have approved the transaction. Closing is anticipated during the first half of 2018, subject to regulatory requirements, certain Columbia Partners client consents, and other customary closing conditions and adjustments.

Selected Quarterly Financial Data

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

SELECTED QUARTERLY FINANICAL DATA

SELECTED QUARTERLY FINANCIAL DATA

The tables below summarize our unaudited quarterly financial information for the years ended December 31, 2017 and 2016:



	2017
(Dollars in thousands, except per share data)	Fourth Quarter			Third Quarter		Second Quarter		First Quarter
Income statement data:	(unaudited)
Interest income	$	37,868		$	35,575	$	32,115	$	28,737
Interest expense	13,069			11,970		10,082		7,821
Net interest income	24,799			23,605		22,033		20,916
Provision (credit) for loan losses	(1,665		)	283		516		243
Net interest income after provision for loan losses	26,464			23,322		21,517		20,673
Non-interest income:
Investment management fees	9,416			9,214		9,130		9,340
Net gain (loss) on the sale and call of investment securities	56			15		241		(2		)
Other non-interest income	2,667			2,477		2,341		2,071
Total non-interest income	12,139			11,706		11,712		11,409
Non-interest expense:
Intangible amortization expense	463			463		462		463
Other non-interest expense	25,255			22,349		21,322		20,695
Total non-interest expense	25,718			22,812		21,784		21,158
Income before tax	12,885			12,216		11,445		10,924
Income tax expense	842			2,184		3,024		3,432
Net income	$	12,043		$	10,032	$	8,421	$	7,492

Earnings per common share:
Basic	$	0.44		$	0.36	$	0.31	$	0.27
Diluted	$	0.42		$	0.35	$	0.29	$	0.26



	2016
(Dollars in thousands, except per share data)	Fourth Quarter			Third Quarter			Second Quarter		First Quarter
Income statement data:	(unaudited)
Interest income	$	26,232		$	24,925		$	23,795	$	23,360
Interest expense	6,719			6,221			5,576		4,983
Net interest income	19,513			18,704			18,219		18,377
Provision (credit) for loan losses	1,178			(542		)	80		122
Net interest income after provision for loan losses	18,335			19,246			18,139		18,255
Non-interest income:
Investment management fees	10,221			10,333			9,462		7,019
Net gain on the sale and call of investment securities	—			14			62		1
Other non-interest income	3,428			2,150			1,923		1,895
Total non-interest income	13,649			12,497			11,447		8,915
Non-interest expense:
Intangible amortization expense	462			463			438		390
Change in fair value of acquisition earn out	(2,478		)	(1,209		)	—		—
Other non-interest expense	22,833			21,260			19,019		17,616
Total non-interest expense	20,817			20,514			19,457		18,006
Income before tax	11,167			11,229			10,129		9,164
Income tax expense	3,596			2,775			3,356		3,321
Net income	$	7,571		$	8,454		$	6,773	$	5,843

Earnings per common share:
Basic	$	0.27		$	0.31		$	0.25	$	0.21
Diluted	$	0.27		$	0.30		$	0.24	$	0.21

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Nature of operation

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”), a registered broker/dealer.

The Bank was established to serve the commercial banking needs of middle-market businesses and private banking needs and high-net-worth individuals. Chartwell provides investment management services primarily to institutional investors, mutual funds and individual investors. CTSC Securities supports marketing efforts for the proprietary investment products provided by Chartwell, including shares of mutual 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 Securities and Exchange Commission (“SEC”). CTSC Securities is regulated by the SEC and Financial Industry Regulatory Authority (“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 conducts business through its office located in Pittsburgh, Pennsylvania.

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 different 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 (established in 2011 to hold and manage the foreclosed properties for the Bank), after elimination of inter-company accounts and transactions. 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.

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), on an after-tax basis.

The cost of securities sold is determined on a specific identification basis. Amortization of premiums and accretion of discounts are recorded as interest income on investments over the estimated 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 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 as well as the shareholders’ equity section of the consolidated statements of financial condition, on an after-tax basis. For equity securities an OTTI charge is recorded through current period earnings for the full decline in fair value below cost.

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 were recoverable at par value, as of December 31, 2017 and 2016. Cash and stock dividends are reported as interest income on investments, 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 estimated 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 on 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 a 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 owned, other than bank premises, is recorded at fair value less estimated selling costs. 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 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 recorded in the consolidated statements of income. Loans are charged off 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.

In management’s judgment, the allowance was appropriate to cover probable losses inherent in the loan portfolio as of December 31, 2017 and 2016. 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 two components of the allowance for loan losses represent estimates of general reserves based upon Accounting Standards Codification (“ASC”) Topic 450, Contingencies; and specific reserves based on ASC Topic 310, Receivables. ASC Topic 450 applies to homogeneous loan pools such as commercial loans, consumer lines of credit and residential mortgages that are not individually evaluated for impairment. ASC Topic 310 is applied to commercial and consumer loans that are individually evaluated for impairment.

In management’s opinion, a loan is impaired, based upon current information and events, 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 of general reserves 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, the results of internal loan reviews, etc. Finally, management considers the impact of changes in current local and regional economic conditions in the markets that we serve.

Management bases the computation of the allowance for loan losses of general reserves 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: private banking, commercial and industrial, and commercial real estate. 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 received on a quarterly basis.

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. Bad debt expense is recorded to other non-interest expense on the consolidated statements of income and the allowance for uncollectible accounts is recorded to investment management fees receivable, net on the consolidated statements of financial position. 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 $322,000 of bad debt expense associated with a single relationship recorded for the year ended December 31, 2017. There was no bad debt expense recorded for the years ended December 31, 2016 and 2015. There was no allowance for uncollectible accounts recorded as of December 31, 2017 and 2016.

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 earn out 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. Goodwill is not amortized and is subject to at least annual assessments for impairment by applying a fair value based test. The Company reviews goodwill annually and again at any quarter-end if a material event occurs during the quarter that may affect goodwill. If goodwill testing is required, an assessment of qualitative factors can be completed before performing the two step goodwill impairment test. If an assessment of qualitative factors determines it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then the two step goodwill impairment test is not required. Goodwill is evaluated for potential impairment by determining if the fair value has fallen below carrying value.

Other intangible assets represent purchased assets that may lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. The Company has determined that certain of its acquired mutual fund client relationships meet the criteria to be considered indefinite-lived assets because the Company expects both the renewal of these contracts and the cash flows generated by these assets to continue indefinitely. Accordingly, the Company does not amortize these intangible assets, but instead reviews these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived assets may be impaired. Each reporting period, the Company assesses whether events or circumstances have occurred which indicate that the indefinite life criteria are no longer met. If the indefinite life criteria are no longer met, the Company would assess whether the carrying value of these assets exceeds its fair value, an impairment loss would be recorded in an amount equal to any such excess and these assets would be reclassified to finite-lived. Other intangible assets that the Company has determined to have finite lives, such as trade name, client lists and non-compete agreements are amortized over their estimated useful lives. 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. Finite-lived intangibles are evaluated for impairment on an annual basis or more frequently whenever events or circumstances occur indicating that the carrying amount may not be recoverable.

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 non-interest 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. Interest on deposits is accrued and charged to interest expense daily and is paid or credited in accordance with the terms of the respective accounts.

Borrowings

BORROWINGS

The Company records FHLB advances, line of credit borrowings and subordinated notes payable at their principal amount net of debt issuance costs. 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 upon the exercise of stock options and the 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. The Company considers uncertain tax positions that it has taken or expects to take on a tax return. Any interest and penalties related to unrecognized tax benefits would be recognized in income tax expense in the consolidated statements of income.

Derivates and hedging activities

DERIVATIVES AND HEDGING ACTIVITIES

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 (loss). When the cash flows associated with the hedged item are realized, the gain or loss included in accumulated other comprehensive income (loss) is recognized in the consolidated statements of income. The Company also has interest rate 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 of share-based awards made to employees and directors.

Compensation cost for all share-based payments is based on the estimated grant-date fair value. The value of the portion of the award that is ultimately expected to vest is included in stock-based compensation expense 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 and the non-credit component of unrealized 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 cash flow hedge 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 previous net gains on treasury share transactions exists. Any deficiency is charged to retained earnings.

Recent accounting developments

Years Ended December 31,

Anti-dilutive shares ⁽¹⁾