Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	Apr. 30, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	TriState Capital Holdings, Inc.
Entity Central Index Key	0001380846
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Document Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		29,841,310

Unaudited Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
ASSETS
Cash	$ 357	$ 357
Interest-earning deposits with other institutions	1,004,612	395,860
Federal funds sold	5,159	7,638
Cash and cash equivalents	1,010,128	403,855
Debt securities available-for-sale, at fair value	275,170	248,782
Debt securities held-to-maturity, at cost	312,842	196,044
Federal Home Loan Bank stock	18,724	24,324
Total investment securities	606,736	469,150
Loans and leases held-for-investment	6,958,149	6,577,559
Allowance for loan and lease losses	(17,304)	(14,108)
Loans and leases held-for-investment, net	6,940,845	6,563,451
Accrued interest receivable	22,106	22,326
Investment management fees receivable, net	6,656	7,560
Goodwill	41,659	41,660
Intangible assets, net of accumulated amortization of $10,939 and $10,437, respectively	23,693	24,194
Office properties and equipment, net of accumulated depreciation of $14,479 and $13,976, respectively	10,089	9,569
Operating lease right-of-use asset	22,085	22,589
Bank owned life insurance	70,472	70,044
Prepaid expenses and other assets	235,592	131,412
Total assets	8,990,061	7,765,810
Liabilities:
Deposits	7,782,759	6,634,613
Borrowings, net	330,000	355,000
Accrued interest payable on deposits and borrowings	4,462	5,490
Deferred tax liability, net	2,366	6,931
Operating lease liability	23,244	23,644
Other accrued expenses and other liabilities	232,850	118,851
Total liabilities	8,375,681	7,144,529
Shareholders’ Equity:
Common stock, no par value; Shares authorized - 45,000,000; Shares issued - 32,002,728 and 31,482,408, respectively; Shares outstanding - 29,762,578 and 29,355,986, respectively	295,587	295,349
Additional paid-in capital	22,783	23,095
Retained earnings	229,382	218,449
Accumulated other comprehensive income (loss), net	(14,049)	1,132
Treasury stock (2,240,150 and 2,126,422 shares, respectively)	(35,402)	(32,823)
Total shareholders’ equity	614,380	621,281
Total liabilities and shareholders’ equity	8,990,061	7,765,810
Series A preferred stock
Shareholders’ Equity:
Preferred stock, no par value; Shares authorized - 150,000; Series A Shares issued and outstanding - 40,250 and 40,250, respectively, Series B Shares issued and outstanding - 80,500 and 80,500, respectively	38,468	38,468
Series B preferred stock
Shareholders’ Equity:
Preferred stock, no par value; Shares authorized - 150,000; Series A Shares issued and outstanding - 40,250 and 40,250, respectively, Series B Shares issued and outstanding - 80,500 and 80,500, respectively	$ 77,611	$ 77,611

Unaudited Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accumulated amortization	$ 10,939	$ 10,437
Accumulated depreciation	$ 14,479	$ 13,976
Shares Authorized, Preferred Stock (in shares)	150,000	150,000
Shares Authorized, Common Stock (in shares)	45,000,000	45,000,000
Shares Issued, Common Stock (in shares)	32,002,728	31,482,408
Shares Outstanding, Common Stock (in shares)	29,762,578	29,355,986
Treasury Stock (in shares)	2,240,150	2,126,422
Series A preferred stock
Shares Issued, Preferred Stock (in shares)	40,250	40,250
Shares Outstanding, Preferred Stock (in shares)	40,250	40,250
Series B preferred stock
Shares Issued, Preferred Stock (in shares)	80,500	80,500
Shares Outstanding, Preferred Stock (in shares)	80,500	80,500

Unaudited Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest income:
Loans and leases	$ 58,918	$ 57,262
Investments	3,901	4,353
Interest-earning deposits	1,383	1,287
Total interest income	64,202	62,902
Interest expense:
Deposits	27,244	29,333
Borrowings	2,036	3,197
Total interest expense	29,280	32,530
Net interest income	34,922	30,372
Provision (credit) for loan and lease losses	2,993	(377)
Net interest income after provision for loan and lease losses	31,929	30,749
Non-interest income:
Net gain on the sale and call of debt securities	57	28
Other income	616	1,147
Total non-interest income	13,316	13,069
Non-interest expense:
Compensation and employee benefits	17,446	16,775
Premises and occupancy costs	1,909	1,270
Professional fees	1,470	995
FDIC insurance expense	2,170	1,421
General insurance expense	262	294
State capital shares tax	383	380
Travel and entertainment expense	864	835
Intangible amortization expense	502	502
Other operating expenses	4,138	4,200
Total non-interest expense	29,144	26,672
Income before tax	16,101	17,146
Income tax expense	3,206	2,582
Net income	12,895	14,564
Preferred stock dividends	1,962	679
Net income available to common shareholders	$ 10,933	$ 13,885
Earnings per common share:
Basic (in usd per share)	$ 0.39	$ 0.50
Diluted (in usd per share)	$ 0.38	$ 0.48
Investment management fees
Non-interest income:
Total non-interest income	$ 7,638	$ 9,424
Service charges on deposits
Non-interest income:
Total non-interest income	213	136
Swap fees
Non-interest income:
Total non-interest income	4,373	1,803
Commitment and other loan fees
Non-interest income:
Total non-interest income	$ 419	$ 531

Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 12,895	$ 14,564
Other comprehensive income (loss):
Unrealized holding gains (losses) on debt securities, net of tax expense (benefit) of $(2,997) and $766, respectively	(9,422)	2,430
Reclassification adjustment for gains included in net income on debt securities, net of tax expense of $(3) and $(4), respectively	(12)	(13)
Unrealized holding losses on derivatives, net of tax expense of $(1,837) and $(44), respectively	(5,874)	(162)
Reclassification adjustment for losses (gains) included in net income on derivatives, net of tax benefit (expense) of $32 and $(139), respectively	127	(422)
Other comprehensive income (loss)	(15,181)	1,833
Total comprehensive income (loss)	$ (2,286)	$ 16,397

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Tax expense (benefit) on unrealized holding gains (losses) on debt securities	$ (2,997)	$ 766
Tax benefit (expense) on debt securities losses (gains) reclassified from other comprehensive income	(3)	(4)
Tax expense (benefit) on unrealized holding gains (losses) on derivatives	(1,837)	(44)
Tax benefit (expense) on derivative losses (gains) reclassified from other comprehensive income	$ 32	$ (139)

Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-in-Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss), Net	Treasury Stock
Beginning balance at Dec. 31, 2018	$ 479,354	$ 38,468	$ 293,355	$ 15,364	$ 164,009	$ (1,331)	$ (30,511)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	14,564				14,564
Other comprehensive income (loss)	1,833					1,833
Preferred stock dividends	(679)				(679)
Exercise of stock options	188		342	(154)
Purchase of treasury stock	(433)						(433)
Stock-based compensation	1,730			1,730
Ending balance at Mar. 31, 2019	496,557	38,468	293,697	16,940	177,894	502	(30,944)
Beginning balance at Dec. 31, 2019	621,281	116,079	295,349	23,095	218,449	1,132	(32,823)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	12,895				12,895
Other comprehensive income (loss)	(15,181)					(15,181)
Preferred stock dividends	(1,962)				(1,962)
Exercise of stock options	91		238	(147)
Purchase of treasury stock	(2,579)						(2,579)
Cancellation of stock options	(2,484)			(2,484)
Stock-based compensation	2,319			2,319
Ending balance at Mar. 31, 2020	$ 614,380	$ 116,079	$ 295,587	$ 22,783	$ 229,382	$ (14,049)	$ (35,402)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income	$ 12,895	$ 14,564
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and intangible amortization expense	1,005	906
Amortization of deferred financing costs	0	51
Provision (credit) for loan losses	2,993	(377)
Stock-based compensation expense	2,319	1,730
Net gain on the sale or call of debt securities available-for-sale	(15)	(17)
Net gain on the call of debt securities held-to-maturity	(42)	(11)
Income from equity securities	0	(719)
Income from debt securities trading	(239)	0
Purchase of debt securities trading	(20,932)	0
Proceeds from the sale of debt securities trading	21,171	0
Net amortization (accretion) of premiums and discounts on debt securities	15	(5)
Decrease (increase) in investment management fees receivable, net	904	(595)
Decrease (increase) in accrued interest receivable	220	(3,145)
Decrease (increase) in accrued interest payable	(1,028)	593
Bank owned life insurance income	(428)	(420)
Decrease in income taxes payable	0	(488)
Decrease in prepaid income taxes	2,688	7,066
Deferred tax provision	240	223
Increase (decrease) in accounts payable and other accrued expenses	(13,816)	(19,323)
Other, net	(3,653)	(4,173)
Net cash provided by (used in) operating activities	4,297	(4,140)
Cash flows from investing activities:
Purchase of debt securities available-for-sale	(92,637)	(12,425)
Purchase of debt securities held-to-maturity	(219,269)	(42,367)
Proceeds from the sale of debt securities available-for-sale	49,967	0
Proceeds from the sale of equity securities	0	2,000
Principal repayments and maturities of debt securities available-for-sale	3,856	10,202
Principal repayments and maturities of debt securities held-to-maturity	122,505	21,595
Investment in low income housing and historic tax credits	(2,847)	(311)
Net redemption of Federal Home Loan Bank stock	5,600	4,600
Net increase in loans and leases	(380,388)	(201,971)
Additions to office properties and equipment	(1,023)	(656)
Net cash used in investing activities	(514,236)	(219,333)
Cash flows from financing activities:
Net increase in deposit accounts	1,148,146	287,243
Net decrease in Federal Home Loan Bank advances	(55,000)	(5,000)
Net increase (decrease) in line of credit advances	30,000
Net increase (decrease) in line of credit advances		(1,000)
Net proceeds from exercise of stock options	91	188
Cancellation of stock options	(2,484)	0
Payment of contingent consideration	0	(2,920)
Purchase of treasury stock	(2,579)	(433)
Dividends paid on preferred stock	(1,962)	(679)
Net cash provided by financing activities	1,116,212	277,399
Net change in cash and cash equivalents during the period	606,273	53,926
Cash and cash equivalents at beginning of the period	403,855	189,985
Cash and cash equivalents at end of the period	1,010,128	243,911
Cash paid (received) during the period for:
Interest expense	30,308	31,886
Income taxes	278	(4,219)
Other non-cash activity:
Operating lease right-of-use asset	22,084	24,766
Unsettled purchase of debt securities held-to-maturity	$ 20,000	$ 0

Basis of Information and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

BASIS OF INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NATURE OF OPERATION

TriState Capital Holdings, Inc. (“we,” “us,” “our,” the “holding company,” the “parent company,” 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, a Pennsylvania-chartered state bank (the “Bank”); Chartwell Investment Partners, LLC, a registered investment adviser (“Chartwell”); and Chartwell TSC Securities Corp., a registered broker/dealer (“CTSC Securities”).

The Bank was established to serve the commercial banking needs of regionally located middle-market businesses and financial services providers and the private banking needs of high-net-worth individuals nation-wide. The Bank has two wholly owned subsidiaries: TSC Equipment Finance LLC (“TSC Equipment Finance”), established to hold and manage loans and leases of our equipment finance business, and Meadowood Asset Management, LLC (“Meadowood”), established to hold and manage other real estate owned by the bank and/or foreclosed properties for the Bank.

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.

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 Board of Governors of the Federal Reserve System and its Reserve Banks, which we refer to as the Federal Reserve. Chartwell is a registered investment adviser regulated by the Securities and Exchange Commission (“SEC”). CTSC Securities is regulated by the SEC and the Financial Industry Regulatory Authority, Inc. (“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 revenues and expenses 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.

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

CONSOLIDATION

Our 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 subsidiaries, TSC Equipment Finance and Meadowood, after elimination of inter-company accounts and transactions. The unaudited condensed consolidated financial statements of the Company presented herein have been prepared pursuant to SEC rules for Quarterly Reports on Form 10-Q and do not include all of the information and note disclosures required by GAAP for a full year presentation. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited condensed consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and the related notes for the fiscal year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 24, 2020.

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.

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, which includes an initial measurement of any contingent earn out, and the fair value of the net assets acquired (including identified intangibles) is recorded as goodwill in the consolidated statements of financial condition. A change in the initial estimate of any contingent earn out amount is recorded to non-interest expense in the consolidated statements of income.

INVESTMENT SECURITIES

The Company’s investments are classified as either: (1) held-to-maturity, which are debt securities that the Company intends to hold until maturity and are reported at amortized cost; (2) trading, which are debt 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 non-interest income; (3) available-for-sale, which are debt 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; or (4) equity securities, which are reported at fair value, with unrealized gains and losses included in non-interest income.

The cost of securities sold is determined on a specific identification basis. Amortization of premiums and accretion of discounts are recorded to 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 and the shareholders’ equity section of the consolidated statements of financial condition, on an after-tax basis.

FEDERAL HOME LOAN BANK STOCK

The Company is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh. 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 March 31, 2020 and December 31, 2019. Cash and stock dividends are reported as interest income on investments in the consolidated statements of income.

LOANS AND LEASES

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. 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, at which time the loan is placed on non-accrual status. All accrued and unpaid interest on such loans is then reversed. The 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, such as 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 lending agreement with such customer. Commitments generally have fixed expiration dates or other termination clauses (i.e., loans due on demand) 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 AND LEASE LOSSES

The allowance for loan and lease losses is established through provisions for loan and lease losses that are recorded in the consolidated statements of income. Loans and leases are charged off against the allowance for loan and lease losses when management believes that the principal is uncollectible. If, at a later time, amounts are recovered with respect to loans and leases previously charged off, the recovered amount is credited to the allowance for loan and lease losses.

In management’s judgment, the allowance was appropriate to cover probable losses inherent in the loan and lease portfolio as of March 31, 2020 and December 31, 2019. 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 and lease 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 and lease 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 and lease losses represent estimates of general reserves based upon Accounting Standards Codification (“ASC”) Topic 450, Contingencies; and specific reserves based upon 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 or lease is impaired, based upon current information and events, when it is probable that the loan or lease 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 and leases 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 and lease loss of general reserves, management considers numerous factors, including historical charge-offs and subsequent recoveries. Management also considers qualitative factors that influence our credit quality, including, but not limited to, delinquency and non-performing loan trends, changes in loan underwriting guidelines and credit policies, and the results of internal loan reviews. Finally, management considers the impact of changes in current local and regional economic conditions in the markets that we serve.

Management bases the computation of the allowance for loan and lease 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 in addition to the loss emergence period. Management has developed a methodology that is applied to each of the three primary loan portfolios: private banking loans, commercial and industrial (“C&I”) loans and leases, and commercial real estate (“CRE”) loans. As the loan loss history, mix and risk ratings of each loan portfolio change, the primary factor adjusts accordingly. The allowance for loan and lease 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, or risk factors, and applies a quantitative percentage that drives the secondary factor. Nine risk factors have been identified 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 loan 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 and lease losses on outstanding loans.

INVESTMENT MANAGEMENT FEES

The Company recognizes investment management fee revenue when 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. Certain incremental costs incurred to acquire some of our investment management contracts are deferred and amortized to non-interest expense over the estimated life of the contract.

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 no bad debt expense recorded for the three months ended March 31, 2020, and 2019 and no allowance for uncollectible accounts as of March 31, 2020 and December 31, 2019.

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 a 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 a 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 assesses whether the carrying value of these assets exceeds its fair value. If the carrying value exceeds the fair value of the asset, an impairment loss is recorded in an amount equal to any such excess and the assets are reclassified to finite-lived. Other intangible assets that the Company has determined to have finite lives, such as its trade names, 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 25 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. Office properties include furniture, fixtures and leasehold improvements. Equipment includes computer equipment and internal use software. Depreciation is computed utilizing 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 10 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.

OPERATING LEASES

The Company is a lessee in noncancellable operating leases, primarily for its office spaces and other office equipment. The Company accounts for leases in accordance with ASC Topic 842, “Leases,” and records operating leases as a right-of-use asset and an offsetting lease liability in the consolidated statements of financial condition at the present value of the unpaid lease payments. The Company generally uses its incremental borrowing rate as the discount rate for operating leases. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For operating leases, the right-of-use asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

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 a BOLI policy, the Company receives the cash surrender value. BOLI benefits are payable to the Company upon the 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.

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.

EARNINGS PER COMMON SHARE

Earnings per common share (“EPS”) is computed using the two-class method, where net income is reduced by dividends declared on our preferred stock to derive net income available to common shareholders. Basic 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.

STOCK-BASED COMPENSATION

The Company accounts for its stock-based compensation awards based on estimated fair values of stock-based awards made to employees and directors. Compensation cost for all stock-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 compensation and employee benefits expense in the consolidated statements of income and recorded as a component of additional paid-in capital. Compensation expense for all awards is recognized on a straight-line basis over the requisite service period for the entire grant.

DERIVATIVES AND HEDGING ACTIVITIES

All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities. 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.

The Company executes interest rate derivatives with its commercial banking customers to facilitate their respective risk management strategies which generate swap fee income. 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 and are not designated as hedging instruments. Swap fees are based on the notional amount and weighted maturity of each individual transaction and are collected and recorded to non-interest income in the consolidated statements of income when the transaction is executed.

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

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Unrealized holding gains and the non-credit component of unrealized losses on the Company’s debt 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 debt 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.

Income tax effects in accumulated other comprehensive income (loss) are released as investments are sold or matured and as liabilities are extinguished.

TREASURY STOCK

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

RECLASSIFICATION

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

Investment Securities

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

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



	March 31, 2020
(Dollars in thousands)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Estimated Fair Value
Debt securities available-for-sale:
Corporate bonds	$	213,148	$	1,214	$	8,596	$	205,766
Trust preferred securities	18,125		—		2,329		15,796
Agency collateralized mortgage obligations	25,983		1		325		25,659
Agency mortgage-backed securities	17,683		753		9		18,427
Agency debentures	8,967		555		—		9,522
Total debt securities available-for-sale	283,906		2,523		11,259		275,170
Debt securities held-to-maturity:
Corporate bonds	22,177		575		12		22,740
Agency debentures ⁽¹⁾	271,743		1,091		—		272,834
Municipal bonds	14,575		121		—		14,696
Agency mortgage-backed securities	4,347		719		—		5,066
Total debt securities held-to-maturity	312,842		2,506		12		315,336
Total debt securities	$	596,748	$	5,029	$	11,271	$	590,506


⁽¹⁾	Balance includes $20 million of unsettled transactions.



	December 31, 2019
(Dollars in thousands)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Estimated Fair Value
Debt securities available-for-sale:
Corporate bonds	$	172,704	$	2,821	$	107	$	175,418
Trust preferred securities	18,092		216		48		18,260
Agency collateralized mortgage obligations	27,262		11		80		27,193
Agency mortgage-backed securities	18,058		451		—		18,509
Agency debentures	8,961		441		—		9,402
Total debt securities available-for-sale	245,077		3,940		235		248,782
Debt securities held-to-maturity:
Corporate bonds	24,678		619		—		25,297
Agency debentures	149,912		628		935		149,605
Municipal bonds	17,094		144		—		17,238
Agency mortgage-backed securities	4,360		255		—		4,615
Total debt securities held-to-maturity	196,044		1,646		935		196,755
Total debt securities	$	441,121	$	5,586	$	1,170	$	445,537

Interest income on investment securities was as follows:



	Three Months Ended March 31,
(Dollars in thousands)	2020		2019
Taxable interest income	$	3,391	$	3,872
Non-taxable interest income	112		104
Dividend income	398		377
Total interest income on investment securities	$	3,901	$	4,353

As of March 31, 2020, the contractual maturities of the debt securities were:



	March 31, 2020
	Available-for-Sale				Held-to-Maturity
(Dollars in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in less than one year	$	53,698	$	53,423	$	4,824	$	4,834
Due from one to five years	98,325		96,411		87,424		87,785
Due from five to ten years	70,963		64,959		197,656		198,490
Due after ten years	60,920		60,377		22,938		24,227
Total debt securities	$	283,906	$	275,170	$	312,842	$	315,336

The $60.4 million fair value of debt securities available-for-sale with a contractual maturity due after 10 years as of March 31, 2020, included $34.2 million, or 56.7%, that are floating-rate securities. The $197.7 million amortized cost of debt securities held-to-maturity with a contractual maturity due from five to 10 years as of March 31, 2020, included $15.8 million that have call provisions within the next three 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 debt securities available-for-sale and held-to-maturity and related gross realized gains and losses were:



	Available-for-Sale				Held-to-Maturity
	Three Months Ended March 31,				Three Months Ended March 31,
(Dollars in thousands)	2020		2019		2020		2019
Proceeds from sales	$	49,967	$	—	$	—	$	—
Proceeds from calls	—		1,224		122,353		21,460
Total proceeds	$	49,967	$	1,224	$	122,353	$	21,460

Gross realized gains	$	15	$	17	$	42	$	11
Gross realized losses	—		—		—		—
Net realized gains	$	15	$	17	$	42	$	11

Debt securities available-for-sale of $2.6 million as of March 31, 2020, were held in safekeeping at the FHLB and were included in the calculation of borrowing capacity. Additionally, there were $14.1 million of debt securities held-to-maturity that were pledged as collateral for certain deposit relationships.

The following tables show the fair value and gross unrealized losses on temporarily impaired debt 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 March 31, 2020 and December 31, 2019, respectively:



	March 31, 2020
	Less than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Debt securities available-for-sale:
Corporate bonds	$	125,170	$	6,582	$	17,986	$	2,014	$	143,156	$	8,596
Trust preferred securities	15,795		2,329		—		—		15,795		2,329
Agency collateralized mortgage obligations	3,794		41		21,188		284		24,982		325
Agency mortgage-backed securities	1,289		9		—		—		1,289		9
Total debt securities available-for-sale	146,048		8,961		39,174		2,298		185,222		11,259
Debt securities held-to-maturity:
Corporate bonds	4,489		12		—		—		4,489		12
Total debt securities held-to-maturity	4,489		12		—		—		4,489		12
Total temporarily impaired debt securities ⁽¹⁾	$	150,537	$	8,973	$	39,174	$	2,298	$	189,711	$	11,271


⁽¹⁾	The number of investment positions with unrealized losses totaled 63 for available-for-sale securities and 4 for held-to-maturity securities.



	December 31, 2019
	Less than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Debt securities available-for-sale:
Corporate bonds	$	4,942	$	58	$	19,951	$	49	$	24,893	$	107
Trust preferred securities	—		—		4,417		48		4,417		48
Agency collateralized mortgage obligations	22,117		66		2,544		14		24,661		80
Total debt securities available-for-sale	27,059		124		26,912		111		53,971		235
Debt securities held-to-maturity:
Agency debentures	87,879		935		—		—		87,879		935
Total debt securities held-to-maturity	87,879		935		—		—		87,879		935
Total temporarily impaired debt securities ⁽¹⁾	$	114,938	$	1,059	$	26,912	$	111	$	141,850	$	1,170


⁽¹⁾	The number of investment positions with unrealized losses totaled 86 for available-for-sale securities and 53 for held-to-maturity securities.

The changes 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. The most recent assessment for credit impairment did not identify any issues related to the ultimate repayment of principal and interest on these debt 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 temporary.

There were no outstanding debt securities classified as trading as of March 31, 2020 and December 31, 2019.

There was $18.7 million and $24.3 million in FHLB stock outstanding as of March 31, 2020 and December 31, 2019, respectively.

Loans and Leases

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

LOANS AND LEASES

The Company generates loans through the private banking and middle-market banking channels. The private banking channel primarily includes loans made to high-net-worth individuals, trusts and businesses that are typically secured by cash, marketable securities and/or cash value life insurance. The middle-market banking channel consists of our C&I loan and lease portfolio and CRE loan portfolio, which serve middle-market businesses and real estate developers in our primary markets and certain financial services companies with whom we have multiple relationship components.

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



	March 31, 2020
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate			Total
Loans and leases held-for-investment, before deferred fees and costs	$	3,908,672		$	1,186,242		$	1,856,183		$	6,951,097
Deferred loan costs (fees)	6,883			4,862			(4,693		)	7,052
Loans and leases held-for-investment, net of deferred fees and costs	3,915,555			1,191,104			1,851,490			6,958,149
Allowance for loan and lease losses	(2,174		)	(6,685		)	(8,445		)	(17,304		)
Loans and leases held-for-investment, net	$	3,913,381		$	1,184,419		$	1,843,045		$	6,940,845



	December 31, 2019
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate			Total
Loans and leases held-for-investment, before deferred fees and costs	$	3,688,779		$	1,080,767		$	1,801,375		$	6,570,921
Deferred loan costs (fees)	6,623			4,942			(4,927		)	6,638
Loans and leases held-for-investment, net of deferred fees and costs	3,695,402			1,085,709			1,796,448			6,577,559
Allowance for loan and lease losses	(1,973		)	(5,262		)	(6,873		)	(14,108		)
Loans and leases held-for-investment, net	$	3,693,429		$	1,080,447		$	1,789,575		$	6,563,451

The Company’s customers have unused loan commitments based on the availability of eligible collateral or other terms and conditions under their loan agreements. 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 March 31, 2020 and December 31, 2019, was $4.78 billion and $4.91 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 $712,000 and $645,000 as of March 31, 2020 and December 31, 2019, 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 $37.7 million and $20.7 million as of March 31, 2020 and December 31, 2019, 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 a standby letter 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 March 31, 2020 and December 31, 2019, included in the total unfunded commitments above, was $70.6 million and $72.8 million, respectively. Should the Company be obligated to perform under any standby letters of credit, the Company will seek repayment from the customer for amounts paid. During the three months ended March 31, 2020 and 2019, there were draws on letters of credit totaling $35,000 and $48,000, respectively, which were repaid by the borrowers. 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.

Allowance for Loan and Lease Losses

3 Months Ended

Mar. 31, 2020

Allowance for Loan and Lease Losses [Abstract]

ALLOWANCE FOR LOAN AND LEASE LOSSES

Our allowance for loan and lease losses represents our estimate of probable loan and lease losses inherent in the portfolio at a specific point in time. This estimate includes losses associated with specifically identified loans and leases, as well as estimated probable credit losses inherent in the remainder of the loan and lease 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 and leases are charged off or when the credit history of any of the Company’s three loan portfolios (private banking loans, C&I loans and leases, and CRE loans) improves. Management evaluates the adequacy of the allowance quarterly, and in doing so relies on various factors including, but not limited to, assessment of historical loss experience, delinquency and non-accrual trends, portfolio growth, underlying collateral coverage and current economic conditions. This evaluation is subjective and requires material estimates that may change over time. In addition, management evaluates the overall methodology for the allowance for loan and lease losses on an annual basis. The calculation of the allowance for loan and lease losses takes into consideration the inherent risk identified within each of the Company’s three loan portfolios. In addition, management considers the historical loss experience of each loan portfolio to ensure that the allowance for loan and lease losses is sufficient to cover probable losses inherent in such loan portfolios. Refer to Note 1, Summary of Significant Accounting Policies, to our unaudited condensed consolidated financial statements for more details on the Company’s allowance for loan and lease 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, marketable securities and/or cash value life insurance. 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, marketable securities and/or cash value life insurance, which were 97.5% and 97.4% of total private banking loans as of March 31, 2020 and December 31, 2019, respectively.

Commercial Banking: Commercial and Industrial Loans and Leases

This loan portfolio primarily includes loans and leases made to financial and other 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 and leases, except for certain commercial loans that are secured by marketable securities.

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 marketable securities are treated the same as private banking loans for purposes of the allowance for loan and lease loss calculation.

Commercial 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 CRE 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 CRE 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 problems arise, 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, marketable securities and/or cash value life insurance within the private banking portfolio, which further reduces the risk profile of that portfolio. Refer to Note 1, Summary of Significant Accounting Policies, to our unaudited condensed consolidated financial statements 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 or 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:



	March 31, 2020
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Pass	$	3,912,060	$	1,175,517	$	1,835,993	$	6,923,570
Special mention	—		15,587		4,872		20,459
Substandard	3,495		—		10,625		14,120
Loans and leases held-for-investment	$	3,915,555	$	1,191,104	$	1,851,490	$	6,958,149



	December 31, 2019
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Pass	$	3,691,866	$	1,069,932	$	1,780,768	$	6,542,566
Special mention	—		15,777		14,284		30,061
Substandard	3,536		—		1,396		4,932
Loans and leases held-for-investment	$	3,695,402	$	1,085,709	$	1,796,448	$	6,577,559

Changes in the allowance for loan and lease losses were as follows for the three months ended March 31, 2020 and 2019:



	Three Months Ended March 31, 2020
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Balance, beginning of period	$	1,973	$	5,262	$	6,873	$	14,108
Provision (credit) for loan losses	201		1,220		1,572		2,993
Charge-offs	—		—		—		—
Recoveries	—		203		—		203
Balance, end of period	$	2,174	$	6,685	$	8,445	$	17,304



	Three Months Ended March 31, 2019
(Dollars in thousands)	Private Banking		Commercial and Industrial			Commercial Real Estate		Total
Balance, beginning of period	$	1,942	$	5,764		$	5,502	$	13,208
Provision (credit) for loan losses	59		(604		)	168		(377		)
Charge-offs	—		—			—		—
Recoveries	—		1,881			—		1,881
Balance, end of period	$	2,001	$	7,041		$	5,670	$	14,712

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



	March 31, 2020
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total
Private banking	$	450	$	206	$	184	$	840	$	3,914,715	$	3,915,555
Commercial and industrial	—		—		—		—		1,191,104		1,191,104
Commercial real estate	—		—		—		—		1,851,490		1,851,490
Loans and leases held-for-investment	$	450	$	206	$	184	$	840	$	6,957,309	$	6,958,149



	December 31, 2019
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total
Private banking	$	261	$	—	$	184	$	445	$	3,694,957	$	3,695,402
Commercial and industrial	—		—		—		—		1,085,709		1,085,709
Commercial real estate	—		—		—		—		1,796,448		1,796,448
Loans and leases held-for-investment	$	261	$	—	$	184	$	445	$	6,577,114	$	6,577,559

Non-Performing and Impaired Loans

Management monitors the delinquency status of the Company’s loan portfolio on a monthly basis. Loans are considered non-performing when interest and principal are 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, to our unaudited condensed consolidated financial statements 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 Three Months Ended March 31, 2020
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With a related allowance recorded:
Private banking	$	171	$	193	$	171	$	171	$	—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total with a related allowance recorded	171		193		171		171		—
Without a related allowance recorded:
Private banking	13		13		—		13		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total without a related allowance recorded	13		13		—		13		—
Total:
Private banking	184		206		171		184		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total	$	184	$	206	$	171	$	184	$	—



	As of and for the Twelve Months Ended December 31, 2019
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With a related allowance recorded:
Private banking	$	171	$	193	$	171	$	171	$	—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total with a related allowance recorded	171		193		171		171		—
Without a related allowance recorded:
Private banking	13		13		—		13		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total without a related allowance recorded	13		13		—		13		—
Total:
Private banking	184		206		171		184		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total	$	184	$	206	$	171	$	184	$	—

Impaired loans as of March 31, 2020 and December 31, 2019, were $184,000 and $184,000, respectively. There was no interest income recognized on impaired loans that were also on non-accrual status for the three months ended March 31, 2020, and the twelve months ended December 31, 2019. As of March 31, 2020 and December 31, 2019, 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 $171,000 and $171,000 as of March 31, 2020 and December 31, 2019, respectively.

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



	March 31, 2020
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Allowance for loan and lease losses:
Individually evaluated for impairment	$	171	$	—	$	—	$	171
Collectively evaluated for impairment	2,003		6,685		8,445		17,133
Total allowance for loan and lease losses	$	2,174	$	6,685	$	8,445	$	17,304
Loans and leases held-for-investment:
Individually evaluated for impairment	$	184	$	—	$	—	$	184
Collectively evaluated for impairment	3,915,371		1,191,104		1,851,490		6,957,965
Loans and leases held-for-investment	$	3,915,555	$	1,191,104	$	1,851,490	$	6,958,149



	December 31, 2019
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Allowance for loan and lease losses:
Individually evaluated for impairment	$	171	$	—	$	—	$	171
Collectively evaluated for impairment	1,802		5,262		6,873		13,937
Total allowance for loan and lease losses	$	1,973	$	5,262	$	6,873	$	14,108
Loans and leases held-for-investment:
Individually evaluated for impairment	$	184	$	—	$	—	$	184
Collectively evaluated for impairment	3,695,218		1,085,709		1,796,448		6,577,375
Loans and leases held-for-investment	$	3,695,402	$	1,085,709	$	1,796,448	$	6,577,559

Troubled Debt Restructuring

The aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring was $171,000 and $171,000 as of March 31, 2020 and December 31, 2019, respectively, which were also on non-accrual. There were no unused commitments on loans designated as troubled debt restructurings as of March 31, 2020 and December 31, 2019.

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 TDRs within 12 months of the corresponding balance sheet date with a payment default during the three months ended March 31, 2020 and 2019.

There were no loans newly designated as TDRs during the three months ended March 31, 2020 and 2019.

Other Real Estate Owned

As of March 31, 2020 and December 31, 2019, the balance of the other real estate owned portfolio was $4.3 million and $4.3 million, respectively. There were no residential mortgage loans in the process of foreclosure as of March 31, 2020.

Deposits

3 Months Ended

Mar. 31, 2020

Deposits [Abstract]

DEPOSITS

As of March 31, 2020 and December 31, 2019, deposits were comprised of the following:



	Interest Rate Range	Weighted Average Interest Rate		Balance
(Dollars in thousands)	March 31, 2020	March 31, 2020	December 31, 2019	March 31, 2020		December 31, 2019
Demand and savings accounts:
Noninterest-bearing checking accounts	—	—	—	$	362,075	$	356,102
Interest-bearing checking accounts	0.05 to 1.86%	0.49%	1.57%	2,195,824		1,398,264
Money market deposit accounts	0.10 to 3.25%	0.90%	1.84%	3,783,842		3,426,745
Total demand and savings accounts				6,341,741		5,181,111
Certificates of deposit	0.65 to 3.25%	1.84%	2.24%	1,441,018		1,453,502
Total deposits				$	7,782,759	$	6,634,613
Weighted average rate on interest-bearing accounts		0.96%	1.87%

As of March 31, 2020 and December 31, 2019, the Bank had total brokered deposits of $1.29 billion and $766.6 million, respectively. Reciprocal deposits through Certificate of Deposit Account Registry Service^® (“CDARS^®”) and Insured Cash Sweep^® (“ICS^®”) totaled $938.9 million and $857.9 million as of March 31, 2020 and December 31, 2019, respectively, and were considered non-brokered.

As of March 31, 2020 and December 31, 2019, certificates of deposit with balances of $100,000 or more, excluding brokered and reciprocal deposits, totaled $521.9 million and $551.5 million, respectively. As of March 31, 2020 and December 31, 2019, certificates of deposit with balances of $250,000 or more, excluding brokered and reciprocal deposits, totaled $214.6 million and $233.5 million.

The contractual maturity of certificates of deposit was as follows:



(Dollars in thousands)	March 31, 2020		December 31, 2019
12 months or less	$	1,325,423	$	1,244,838
12 months to 24 months	95,403		168,437
24 months to 36 months	20,192		40,227
Total	$	1,441,018	$	1,453,502

Interest expense on deposits was as follows:



	Three Months Ended March 31,
(Dollars in thousands)	2020		2019
Interest-bearing checking accounts	$	5,214	$	4,542
Money market deposit accounts	14,655		16,540
Certificates of deposit	7,375		8,251
Total interest expense on deposits	$	27,244	$	29,333

Borrowings

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

BORROWINGS

As of March 31, 2020 and December 31, 2019, borrowings were comprised of the following:



	March 31, 2020				December 31, 2019
(Dollars in thousands)	Interest Rate	Ending Balance		Maturity Date	Interest Rate	Ending Balance		Maturity Date
FHLB borrowings:
FHLB line of credit	—%	$	—		1.81%	$	55,000	5/1/2020
Issued 3/20/2020	0.67%	50,000		6/22/2020	—%	—
Issued 3/02/2020	1.68%	50,000		6/2/2020	—%	—
Issued 3/02/2020	1.68%	150,000		6/1/2020	—%	—
Issued 1/08/2020	1.84%	50,000		4/8/2020	—%	—
Issued 12/12/2019	—%	—			1.85%	100,000		1/13/2020
Issued 12/02/2019	—%	—			1.91%	150,000		3/2/2020
Issued 10/08/2019		—			2.00%	50,000		1/8/2020
Line of credit borrowings	4.25%	30,000		10/17/2020		—
Total borrowings, net		$	330,000			$	355,000

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 Qualifying Collateral Report (“QCR”) to the FHLB to update the value of the loans pledged. As of March 31, 2020, the Bank’s borrowing capacity is based on the information provided in the December 31, 2019, QCR filing. As of March 31, 2020, the Bank had securities held in safekeeping at the FHLB with a fair value of $2.6 million, combined with pledged loans of $1.24 billion, for a gross borrowing capacity of $886.7 million, of which $300.0 million was outstanding in advances. As of December 31, 2019, there was $355.0 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 March 31, 2020 and December 31, 2019, there were no outstanding borrowings under these lines of credit and they are available to the Bank at the lenders’ discretion. In addition, the Bank maintains an $8.0 million unsecured line of credit with PNC Bank for private label credit card facilities for certain existing commercial clients of the Bank, of which $3.2 million in notional value of credit cards have been issued. The clients of the Bank are responsible for repaying any balances due on these credit cards directly to PNC, however if the customer fails to repay PNC, the Bank could be required to satisfy the obligation to PNC and initiate collection from our customer as part of the existing credit facility of that customer.

The holding company maintains an unsecured line of credit of $75.0 million with Texas Capital Bank. As of March 31, 2020 and December 31, 2019, there was $30.0 million and $0 outstanding under this line of credit, respectively.

Interest expense on borrowings was as follows:



	Three Months Ended March 31,
(Dollars in thousands)	2020		2019
FHLB borrowings	$	2,035	$	2,585
Line of credit borrowings	1		58
Subordinated notes payable	—		554
Total interest expense on borrowings	$	2,036	$	3,197

Stock Transactions

3 Months Ended

Mar. 31, 2020

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

STOCK TRANSACTIONS

In May 2019, the Company completed the issuance and sale of a registered, underwritten public offering of 3,220,000 depositary shares, each representing a 1/40th interest in a share of its 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock, no par value (the “Series B Preferred Stock”), with a liquidation preference of $1,000 per share (equivalent to $25 per depository share). The Company received net proceeds of $77.6 million from the sale of 80,500 shares of its Series B Preferred Stock (equivalent to 3,220,000 depositary shares), after deducting underwriting discounts, commissions and direct offering expenses. The preferred stock provides Tier 1 capital for the holding company under federal regulatory capital rules.

When, as, and if declared by the board of directors (the “Board”) of the Company, dividends will be payable on the Series B Preferred Stock from the date of issuance to, but excluding July 1, 2026, at a rate of 6.375% per annum, payable quarterly, in arrears, and from and including July 1, 2026, dividends will accrue and be payable at a floating rate equal to three-month LIBOR plus a spread of 408.8 basis points per annum (subject to potential adjustment as provided in the definition of three-month LIBOR), payable quarterly, in arrears. The Company may redeem the Series B Preferred Stock at its option, subject to regulatory approval, on or after July 1, 2024, as described in the prospectus supplement relating to the offering filed with the SEC on May 23, 2019.

In March 2018, the Company completed the issuance and sale of a registered, underwritten public offering of 1,610,000 depositary shares, each representing a 1/40th interest in a share of its 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock, no par value (the “Series A Preferred Stock”), with a liquidation preference of $1,000 per share (equivalent to $25 per depository share). The Company received net proceeds of $38.5 million from the sale of 40,250 shares of its Series A Preferred Stock (equivalent to 1,610,000 depositary shares), after deducting underwriting discounts, commissions and direct offering expenses. The preferred stock provides Tier 1 capital for the holding company under federal regulatory capital rules.

When, as, and if declared by the Board, dividends will be payable on the Series A Preferred Stock from the date of issuance to, but excluding April 1, 2023, at a rate of 6.75% per annum, payable quarterly, in arrears, and from and including April 1, 2023, dividends will accrue and be payable at a floating rate equal to three-month LIBOR plus a spread of 398.5 basis points per annum (subject to potential adjustment), payable quarterly, in arrears. The Company may redeem the Series A Preferred Stock at its option, subject to regulatory approval, on or after April 1, 2023, as described in the prospectus supplement relating to the offering filed with the SEC on March 19, 2018.

During the three months ended March 31, 2020, the Company paid dividends of $679,000 on its Series A Preferred Stock and $1.3 million on its Series B Preferred Stock. During the three months ended March 31, 2019, the Company paid dividends of $679,000 on its Series A Preferred Stock.

Under authorization by the Board, the Company was permitted to repurchase its common stock up to prescribed amounts, of which $9.9 million remained available as of March 31, 2020. The Board also authorized the Company to utilize some of the share repurchase program authorizations to cancel certain options to purchase shares of its common stock granted by the Company. During the three months ended March 31, 2020, the Company repurchased 30,000 shares for approximately $520,000, at an average cost of $17.33 per share, which are held as treasury stock. During the three months ended March 31, 2019, the Company repurchased 20,000 shares for approximately $433,000, at an average cost of 21.66 per share, which are held as treasury stock.

In addition to the shares purchased in the market, the Company acquired 83,728 shares of treasury stock for approximately $2.1 million in connection with the exercise, net settlement or vesting of equity awards during the three months ended March 31, 2020. The Company did not aquire shares of treasury stock in connection with the exercise, net settlement or vesting of equity awards during the three months ended March 31, 2019.

Under prior authorization of the Board, stock option cancellation programs were approved to allow for certain outstanding and vested stock option awards 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 three months ended March 31, 2020, there were 212,447 options canceled for approximately $2.5 million, which was recorded as a reduction to additional paid-in capital.

The tables below show the changes in the Company’s preferred and common shares outstanding during the periods indicated:



	Number of Preferred Shares Outstanding	Number of Common Shares Outstanding
Balance, December 31, 2018	40,250	28,878,674
Issuance of preferred stock	—	—
Issuance of restricted common stock	—	538,703
Forfeitures of restricted common stock	—	(61,474	)
Exercise of stock options	—	15,930
Purchase of treasury stock	—	(20,000	)
Balance, March 31, 2019	40,250	29,351,833

Balance, December 31, 2019	120,750	29,355,986
Issuance of restricted common stock	—	513,820
Forfeitures of restricted common stock	—	(3,500	)
Exercise of stock options	—	10,000
Purchase of treasury stock	—	(113,728	)
Balance, March 31, 2020	120,750	29,762,578

Regulatory Capital

3 Months Ended

Mar. 31, 2020

Broker-Dealer, Net Capital Requirement, SEC Regulation [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 March 31, 2020 and December 31, 2019, 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.

The Basel III regulatory capital framework (the “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 CET 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. As of both March 31, 2020 and December 31, 2019, the capital conservation buffer was 2.5%, in addition to the minimum capital adequacy levels shown 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 March 31, 2020 and December 31, 2019:



	March 31, 2020
	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	$	585,503	11.42	%	$	410,021	8.00	%	N/A		N/A
Bank	$	597,764	11.69	%	$	408,904	8.00	%	$	511,131	10.00	%
Tier 1 risk-based capital ratio
Company	$	567,487	11.07	%	$	307,516	6.00	%	N/A		N/A
Bank	$	579,748	11.34	%	$	306,678	6.00	%	$	408,904	8.00	%
Common equity tier 1 risk-based capital ratio
Company	$	451,408	8.81	%	$	230,637	4.50	%	N/A		N/A
Bank	$	579,748	11.34	%	$	230,009	4.50	%	$	332,235	6.50	%
Tier 1 leverage ratio
Company	$	567,487	7.19	%	$	315,811	4.00	%	N/A		N/A
Bank	$	579,748	7.36	%	$	315,172	4.00	%	$	393,966	5.00	%



	December 31, 2019
	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	$	572,221	12.05	%	$	379,911	8.00	%	N/A		N/A
Bank	$	547,532	11.57	%	$	378,623	8.00	%	$	473,279	10.00	%
Tier 1 risk-based capital ratio
Company	$	558,068	11.75	%	$	284,933	6.00	%	N/A		N/A
Bank	$	532,779	11.26	%	$	283,967	6.00	%	$	378,623	8.00	%
Common equity tier 1 risk-based capital ratio
Company	$	442,385	9.32	%	$	213,700	4.50	%	N/A		N/A
Bank	$	532,779	11.26	%	$	212,975	4.50	%	$	307,631	6.50	%
Tier 1 leverage ratio
Company	$	558,068	7.54	%	$	296,038	4.00	%	N/A		N/A
Bank	$	532,779	7.22	%	$	295,277	4.00	%	$	369,097	5.00	%

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References

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+ Details

Earnings Per Common Share

3 Months Ended

Mar. 31, 2020

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:



	Three Months Ended March 31,
(Dollars in thousands, except per share data)	2020		2019

Net income available to common shareholders	$	10,933	$	13,885
Weighted average common shares outstanding:
Basic	28,180,589		27,832,839
Restricted stock - dilutive	427,404		538,711
Stock options - dilutive	236,851		332,086
Diluted	28,844,844		28,703,636

Earnings per common share:
Basic	$	0.39	$	0.50
Diluted	$	0.38	$	0.48



	Three Months Ended March 31,
	2020	2019
Anti-dilutive shares ⁽¹⁾	545,320	146,579


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

Derivatives and Hedging Activity

3 Months Ended

Mar. 31, 2020

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 payments related to certain of the Company’s FHLB borrowings and to manage the volatility of the change in fair value related to certain of the Company’s equity investments. 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 unaudited condensed consolidated statements of financial condition as of March 31, 2020 and December 31, 2019:



	Asset Derivatives			Liability Derivatives
	as of March 31, 2020			as of March 31, 2020
(Dollars in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate products	Other assets	$	21	Other liabilities	$	9,837

Derivatives not designated as hedging instruments:
Interest rate products	Other assets	157,938		Other liabilities	158,036

Total	Other assets	$	157,959	Other liabilities	$	167,873



	Asset Derivatives			Liability Derivatives
	as of December 31, 2019			as of December 31, 2019
(Dollars in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate products	Other assets	$	—	Other liabilities	$	2,184

Derivatives not designated as hedging instruments:
Interest rate products	Other assets	55,241		Other liabilities	55,289

Total	Other assets	$	55,241	Other liabilities	$	57,473

The following tables show the impact legally enforceable master netting agreements had on the Company’s derivative financial instruments as of March 31, 2020 and December 31, 2019:



	Offsetting of Derivative Assets
	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
March 31, 2020	$	157,959	$	—	$	157,959	$	(32	)	$	—	$	157,927

December 31, 2019	$	55,241	$	—	$	55,241	$	(850	)	$	—	$	54,391



	Offsetting of Derivative Liabilities
	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
March 31, 2020	$	167,873	$	—	$	167,873	$	(32	)	$	(167,250	)	$	591

December 31, 2019	$	57,473	$	—	$	57,473	$	(850	)	$	(55,753	)	$	870

CASH FLOW HEDGES OF INTEREST RATE RISK

The Company’s objectives in using certain interest rate derivatives are to add stability to net interest income 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. The Company has 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 effectively 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 three months ended March 31, 2020.

Characteristics of the Company’s interest rate derivative transactions designated as cash flow hedges of interest rate risk as of March 31, 2020, were as follows:



(Dollars in thousands)	Notional Amount		Effective Rate ⁽¹⁾	Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months		Maturity Date	Remaining Term (in Months)
Interest rate products:
Issued 1/8/2018	$	50,000	2.21%	$	581	1/8/2021	9
Issued 5/30/2019	50,000		2.05%	731		6/1/2022	26
Issued 5/30/2019	50,000		2.03%	724		6/1/2023	38
Issued 5/30/2019	50,000		2.04%	729		6/1/2024	50
Issued 2/28/2020	50,000		0.98%	192		3/2/2025	59
Issued 3/20/2020	50,000		0.60%	10		3/20/2025	60
Total	$	300,000		$	2,967


⁽¹⁾	The effective rate is adjusted for the difference between the three-month FHLB advance rate and three-month LIBOR.

The tables below present the effective portion of the Company’s cash flow hedge instruments in the unaudited condensed consolidated statements of income and accumulated other comprehensive income (loss):



		Three Months Ended March 31,					Three Months Ended March 31,
(Dollars in thousands)		2020			2019		2020			2019
Derivatives designated as hedging instruments:	Location of Gain (Loss) Recognized in Income on Derivatives	Realized Gain (Loss) Recognized in Income on Derivatives					Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives
Interest rate products	Interest expense	$	(159	)	$	561	$	(7,711	)	$	(206	)

NON-DESIGNATED HEDGES

The Company does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and primarily 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 March 31, 2020, the Company had interest rate derivative transactions with an aggregate notional amount of $3.10 billion related to this program.

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



		Three Months Ended March 31,
(Dollars in thousands)		2020			2019
Derivatives not designated as hedging instruments:	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
Interest rate products	Non-interest income	$	(61	)	$	(20	)

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 March 31, 2020, the termination value of derivatives for which the Company had master netting arrangements with the counterparty and in a net liability position was $167.8 million, including accrued interest. As of March 31, 2020, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $169.0 million. If the Company had breached any of these provisions as of March 31, 2020, it could have been required to settle its obligations under the agreements at their termination value.

Disclosures About Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2020

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 and 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 March 31, 2020 and December 31, 2019:



	March 31, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets / Liabilities at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds	$	—	$	205,766	$	—	$	205,766
Trust preferred securities	—		15,796		—		15,796
Agency collateralized mortgage obligations	—		25,659		—		25,659
Agency mortgage-backed securities	—		18,427		—		18,427
Agency debentures	—		9,522		—		9,522
Interest rate swaps	—		157,959		—		157,959
Total financial assets	—		433,129		—		433,129

Financial liabilities:
Interest rate swaps	—		167,873		—		167,873
Total financial liabilities	$	—	$	167,873	$	—	$	167,873



	December 31, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets / Liabilities at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds	$	—	$	175,418	$	—	$	175,418
Trust preferred securities	—		18,260		—		18,260
Agency collateralized mortgage obligations	—		27,193		—		27,193
Agency mortgage-backed securities	—		18,509		—		18,509
Agency debentures	—		9,402		—		9,402
Interest rate swaps	—		55,241		—		55,241
Total financial assets	—		304,023		—		304,023

Financial liabilities:
Interest rate swaps	—		57,473		—		57,473
Total financial liabilities	$	—	$	57,473	$	—	$	57,473

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.

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 March 31, 2020 and December 31, 2019:



	March 31, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets at Fair Value
Loans measured for impairment, net	$	—	$	—	$	13	$	13
Other real estate owned	—		—		4,250		4,250
Total assets	$	—	$	—	$	4,263	$	4,263



	December 31, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets at Fair Value
Loans measured for impairment, net	$	—	$	—	$	13	$	13
Other real estate owned	—		—		4,250		4,250
Total assets	$	—	$	—	$	4,263	$	4,263

As of March 31, 2020 and December 31, 2019, the Company recorded $171,000 and $171,000, respectively, of specific reserves to allowance for loan and lease 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 of ongoing operations, discounted at the loan’s original effective interest rate, or a calculation of 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 and lease losses.

OTHER REAL ESTATE OWNED

OREO 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, OREO 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 March 31, 2020 and December 31, 2019:



	March 31, 2020
(Dollars in thousands)	Fair Value		Valuation Techniques ⁽¹⁾	Significant Unobservable Inputs	Weighted Average Discount Rate
Loans measured for impairment, net	$	13	Collateral	Appraisal value and discount due to salability conditions	—%

Other real estate owned	$	4,250	Collateral	Appraisal value and discount due to salability conditions	17%


⁽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 of ongoing operations if the loan is not collateral dependent.



	December 31, 2019
(Dollars in thousands)	Fair Value		Valuation Techniques ⁽¹⁾	Significant Unobservable Inputs	Weighted Average Multiple/ Discount Rate
Loans measured for impairment, net	$	13	Collateral	Appraisal value and discount due to salability conditions	—%

Other real estate owned	$	4,250	Collateral	Appraisal value and discount due to salability conditions	17%


⁽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 of ongoing operations if the loan is not collateral dependent.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table summarizes of the carrying amounts and estimated fair values of financial instruments:



		March 31, 2020				December 31, 2019
(Dollars in thousands)	Fair Value Level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	1	$	1,010,128	$	1,010,128	$	403,855	$	403,855
Debt securities available-for-sale	2	275,170		275,170		248,782		248,782
Debt securities held-to-maturity	2	312,842		315,336		196,044		196,755
Federal Home Loan Bank stock	2	18,724		18,724		24,324		24,324
Loans and leases held-for-investment, net	3	6,940,845		6,967,244		6,563,451		6,548,432
Accrued interest receivable	2	22,106		22,106		22,326		22,326
Investment management fees receivable, net	2	6,656		6,656		7,560		7,560
Bank owned life insurance	2	70,472		70,472		70,044		70,044
Other real estate owned	3	4,250		4,250		4,250		4,250
Interest rate swaps	2	157,959		157,959		55,241		55,241

Financial liabilities:
Deposits	2	$	7,782,759	$	7,808,249	$	6,634,613	$	6,648,546
Borrowings, net	2	330,000		330,400		355,000		355,003
Interest rate swaps	2	167,873		167,873		57,473		57,473

During the three months ended March 31, 2020 and 2019, 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 March 31, 2020 and December 31, 2019:

CASH AND CASH EQUIVALENTS

The carrying amount approximates fair value.

INVESTMENT SECURITIES

The fair values of debt securities available-for-sale, debt securities held-to-maturity, debt securities trading and equity securities 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 AND LEASES HELD-FOR-INVESTMENT

The fair value of loans and leases held-for-investment is estimated by discounting the future cash flows using market rates (utilizing both unobservable and certain observable inputs when applicable) at which similar loans would be made to borrowers with similar credit ratings over the estimated remaining maturities. Impaired loans are generally valued at the fair value of the associated collateral.

ACCRUED INTEREST RECEIVABLE

The carrying amount approximates fair value.

INVESTMENT MANAGEMENT FEES RECEIVABLE

The carrying amount approximates fair value.

BANK OWNED LIFE INSURANCE

The fair value of the general account BOLI is based on the insurance contract net cash surrender value.

OTHER REAL ESTATE OWNED

OREO is recorded 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 is 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)

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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



	Three Months Ended March 31,
	2020									2019
(Dollars in thousands)	Debt Securities			Derivatives			Total			Debt Securities			Derivatives			Total
Balance, beginning of period	$	2,756		$	(1,624	)	$	1,132		$	(2,363	)	$	1,032		$	(1,331	)
Change in unrealized holding gains (losses)	(9,422		)	(5,874		)	(15,296		)	2,430			(162		)	2,268
Losses (gains) reclassified from other comprehensive income	(12		)	127			115			(13		)	(422		)	(435		)
Net other comprehensive income (loss)	(9,434		)	(5,747		)	(15,181		)	2,417			(584		)	1,833
Balance, end of period	$	(6,678	)	$	(7,371	)	$	(14,049	)	$	54		$	448		$	502

Contingent Liabilities	3 Months Ended
Contingent Liabilities	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
CONTINGENT LIABILITIES	CONTINGENT LIABILITIES From time to time the Company is a party to various litigation matters incidental to the conduct of its business. The Company is not aware of any material 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.

Segments

3 Months Ended

Mar. 31, 2020

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 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 subsidiary. It also supports marketing efforts for Chartwell’s proprietary investment products through the CTSC Securities 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 parent company activity as well as eliminations and adjustments that are necessary for purposes of reconciliation to the consolidated amounts.



(Dollars in thousands)	March 31, 2020			December 31, 2019
Assets:
Bank	$	8,915,114		$	7,686,981
Investment management	83,238			83,295
Parent and other	(8,291		)	(4,466		)
Total assets	$	8,990,061		$	7,765,810



	Three Months Ended March 31, 2020										Three Months Ended March 31, 2019
(Dollars in thousands)	Bank		Investment Management			Parent and Other			Consolidated		Bank			Investment Management		Parent and Other			Consolidated
Income statement data:
Interest income	$	64,202	$	—		$	—		$	64,202	$	62,830		$	—	$	72		$	62,902
Interest expense	29,296		—			(16		)	29,280		31,919			—		611			32,530
Net interest income (loss)	34,906		—			16			34,922		30,911			—		(539		)	30,372
Provision (credit) for loan and lease losses	2,993		—			—			2,993		(377		)	—		—			(377		)
Net interest income (loss) after provision for loan and lease losses	31,913		—			16			31,929		31,288			—		(539		)	30,749
Non-interest income:
Investment management fees	—		7,765			(127		)	7,638		—			9,533		(109		)	9,424
Net gain on the sale and call of debt securities	57		—			—			57		28			—		—			28
Other non-interest income (loss)	5,652		(31		)	—			5,621		2,877			21		719			3,617
Total non-interest income (loss)	5,709		7,734			(127		)	13,316		2,905			9,554		610			13,069
Non-interest expense:
Intangible amortization expense	—		502			—			502		—			502		—			502
Other non-interest expense	21,034		6,626			982			28,642		19,021			7,058		91			26,170
Total non-interest expense	21,034		7,128			982			29,144		19,021			7,560		91			26,672
Income (loss) before tax	16,588		606			(1,093		)	16,101		15,172			1,994		(20		)	17,146
Income tax expense (benefit)	3,348		28			(170		)	3,206		2,024			563		(5		)	2,582
Net income (loss)	$	13,240	$	578		$	(923	)	$	12,895	$	13,148		$	1,431	$	(15	)	$	14,564

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS On May 11, 2020, the Company issued subordinated notes payable of $60.0 million with a maturity date of May 15, 2030. The subordinated notes have a fixed rate of 5.75% through May 15, 2025, at which point they convert to floating rate indexed to three-month LIBOR plus a spread of 5.36%. Beginning with the interest payment due on May 15, 2025, the Company may, at its option, redeem the subordinated notes. The proceeds will qualify under federal regulatory rules as Tier 2 capital for the holding company. The proceeds will be used for general corporate purposes including the funding of the continued growth for the Bank subsidiary, where such funding would count as Tier 1 capital. On April 14, 2020, the Board declared a dividend payable of approximately $679,000, or $0.42 per depositary share, on the Company’s Series A Preferred Stock and a dividend payable of approximately $1.3 million, or $0.40 per depositary share, on the Company’s Series B Preferred Stock, each of which is payable on July 1, 2020, to preferred shareholders of record as of the close of business on June 15, 2020.

Basis of Information and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Nature of Operation

NATURE OF OPERATION

TriState Capital Holdings, Inc. (“we,” “us,” “our,” the “holding company,” the “parent company,” 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, a Pennsylvania-chartered state bank (the “Bank”); Chartwell Investment Partners, LLC, a registered investment adviser (“Chartwell”); and Chartwell TSC Securities Corp., a registered broker/dealer (“CTSC Securities”).

The Bank was established to serve the commercial banking needs of regionally located middle-market businesses and financial services providers and the private banking needs of high-net-worth individuals nation-wide. The Bank has two wholly owned subsidiaries: TSC Equipment Finance LLC (“TSC Equipment Finance”), established to hold and manage loans and leases of our equipment finance business, and Meadowood Asset Management, LLC (“Meadowood”), established to hold and manage other real estate owned by the bank and/or foreclosed properties for the Bank.

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.

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 Board of Governors of the Federal Reserve System and its Reserve Banks, which we refer to as the Federal Reserve. Chartwell is a registered investment adviser regulated by the Securities and Exchange Commission (“SEC”). CTSC Securities is regulated by the SEC and the Financial Industry Regulatory Authority, Inc. (“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 revenues and expenses 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.

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

Consolidation

CONSOLIDATION

Our 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 subsidiaries, TSC Equipment Finance and Meadowood, after elimination of inter-company accounts and transactions. The unaudited condensed consolidated financial statements of the Company presented herein have been prepared pursuant to SEC rules for Quarterly Reports on Form 10-Q and do not include all of the information and note disclosures required by GAAP for a full year presentation. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited condensed consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and the related notes for the fiscal year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 24, 2020.

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.

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, which includes an initial measurement of any contingent earn out, and the fair value of the net assets acquired (including identified intangibles) is recorded as goodwill in the consolidated statements of financial condition. A change in the initial estimate of any contingent earn out amount is recorded to non-interest expense in the consolidated statements of income.

Investment securities

INVESTMENT SECURITIES

The Company’s investments are classified as either: (1) held-to-maturity, which are debt securities that the Company intends to hold until maturity and are reported at amortized cost; (2) trading, which are debt 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 non-interest income; (3) available-for-sale, which are debt 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; or (4) equity securities, which are reported at fair value, with unrealized gains and losses included in non-interest income.

The cost of securities sold is determined on a specific identification basis. Amortization of premiums and accretion of discounts are recorded to 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 and the shareholders’ equity section of the consolidated statements of financial condition, on an after-tax basis.

Federal Home Loan Bank stock

FEDERAL HOME LOAN BANK STOCK

The Company is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh. 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 March 31, 2020 and December 31, 2019. Cash and stock dividends are reported as interest income on investments in the consolidated statements of income.

Loans and leases

LOANS AND LEASES

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. 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, at which time the loan is placed on non-accrual status. All accrued and unpaid interest on such loans is then reversed. The 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, such as 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 lending agreement with such customer. Commitments generally have fixed expiration dates or other termination clauses (i.e., loans due on demand) 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 and lease losses

ALLOWANCE FOR LOAN AND LEASE LOSSES

The allowance for loan and lease losses is established through provisions for loan and lease losses that are recorded in the consolidated statements of income. Loans and leases are charged off against the allowance for loan and lease losses when management believes that the principal is uncollectible. If, at a later time, amounts are recovered with respect to loans and leases previously charged off, the recovered amount is credited to the allowance for loan and lease losses.

In management’s judgment, the allowance was appropriate to cover probable losses inherent in the loan and lease portfolio as of March 31, 2020 and December 31, 2019. 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 and lease 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 and lease 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 and lease losses represent estimates of general reserves based upon Accounting Standards Codification (“ASC”) Topic 450, Contingencies; and specific reserves based upon 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 or lease is impaired, based upon current information and events, when it is probable that the loan or lease 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 and leases 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 and lease loss of general reserves, management considers numerous factors, including historical charge-offs and subsequent recoveries. Management also considers qualitative factors that influence our credit quality, including, but not limited to, delinquency and non-performing loan trends, changes in loan underwriting guidelines and credit policies, and the results of internal loan reviews. Finally, management considers the impact of changes in current local and regional economic conditions in the markets that we serve.

Management bases the computation of the allowance for loan and lease 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 in addition to the loss emergence period. Management has developed a methodology that is applied to each of the three primary loan portfolios: private banking loans, commercial and industrial (“C&I”) loans and leases, and commercial real estate (“CRE”) loans. As the loan loss history, mix and risk ratings of each loan portfolio change, the primary factor adjusts accordingly. The allowance for loan and lease 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, or risk factors, and applies a quantitative percentage that drives the secondary factor. Nine risk factors have been identified 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 loan 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 and lease losses on outstanding loans.

Investment management fees

INVESTMENT MANAGEMENT FEES

The Company recognizes investment management fee revenue when 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. Certain incremental costs incurred to acquire some of our investment management contracts are deferred and amortized to non-interest expense over the estimated life of the contract.

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 no bad debt expense recorded for the three months ended March 31, 2020, and 2019 and no allowance for uncollectible accounts as of March 31, 2020 and December 31, 2019.

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 a 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 a 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 assesses whether the carrying value of these assets exceeds its fair value. If the carrying value exceeds the fair value of the asset, an impairment loss is recorded in an amount equal to any such excess and the assets are reclassified to finite-lived. Other intangible assets that the Company has determined to have finite lives, such as its trade names, 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 25 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. Office properties include furniture, fixtures and leasehold improvements. Equipment includes computer equipment and internal use software. Depreciation is computed utilizing 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 10 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.

Operating Leases

OPERATING LEASES

The Company is a lessee in noncancellable operating leases, primarily for its office spaces and other office equipment. The Company accounts for leases in accordance with ASC Topic 842, “Leases,” and records operating leases as a right-of-use asset and an offsetting lease liability in the consolidated statements of financial condition at the present value of the unpaid lease payments. The Company generally uses its incremental borrowing rate as the discount rate for operating leases. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. For operating leases, the right-of-use asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

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 a BOLI policy, the Company receives the cash surrender value. BOLI benefits are payable to the Company upon the 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.

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.

Earnings per common share

EARNINGS PER COMMON SHARE

Earnings per common share (“EPS”) is computed using the two-class method, where net income is reduced by dividends declared on our preferred stock to derive net income available to common shareholders. Basic 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.

Stock-based compensation

STOCK-BASED COMPENSATION

The Company accounts for its stock-based compensation awards based on estimated fair values of stock-based awards made to employees and directors. Compensation cost for all stock-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 compensation and employee benefits expense in the consolidated statements of income and recorded as a component of additional paid-in capital. Compensation expense for all awards is recognized on a straight-line basis over the requisite service period for the entire grant.

Derivatives 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. 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.

The Company executes interest rate derivatives with its commercial banking customers to facilitate their respective risk management strategies which generate swap fee income. 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 and are not designated as hedging instruments. Swap fees are based on the notional amount and weighted maturity of each individual transaction and are collected and recorded to non-interest income in the consolidated statements of income when the transaction is executed.

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

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 debt 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 debt 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.

Income tax effects in accumulated other comprehensive income (loss) are released as investments are sold or matured and as liabilities are extinguished.

Treasury stock

TREASURY STOCK

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

Reclassification

RECLASSIFICATION

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

Investment Securities (Tables)

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of investment securities available-for-sale

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



	March 31, 2020
(Dollars in thousands)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Estimated Fair Value
Debt securities available-for-sale:
Corporate bonds	$	213,148	$	1,214	$	8,596	$	205,766
Trust preferred securities	18,125		—		2,329		15,796
Agency collateralized mortgage obligations	25,983		1		325		25,659
Agency mortgage-backed securities	17,683		753		9		18,427
Agency debentures	8,967		555		—		9,522
Total debt securities available-for-sale	283,906		2,523		11,259		275,170
Debt securities held-to-maturity:
Corporate bonds	22,177		575		12		22,740
Agency debentures ⁽¹⁾	271,743		1,091		—		272,834
Municipal bonds	14,575		121		—		14,696
Agency mortgage-backed securities	4,347		719		—		5,066
Total debt securities held-to-maturity	312,842		2,506		12		315,336
Total debt securities	$	596,748	$	5,029	$	11,271	$	590,506


⁽¹⁾	Balance includes $20 million of unsettled transactions.



	December 31, 2019
(Dollars in thousands)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Estimated Fair Value
Debt securities available-for-sale:
Corporate bonds	$	172,704	$	2,821	$	107	$	175,418
Trust preferred securities	18,092		216		48		18,260
Agency collateralized mortgage obligations	27,262		11		80		27,193
Agency mortgage-backed securities	18,058		451		—		18,509
Agency debentures	8,961		441		—		9,402
Total debt securities available-for-sale	245,077		3,940		235		248,782
Debt securities held-to-maturity:
Corporate bonds	24,678		619		—		25,297
Agency debentures	149,912		628		935		149,605
Municipal bonds	17,094		144		—		17,238
Agency mortgage-backed securities	4,360		255		—		4,615
Total debt securities held-to-maturity	196,044		1,646		935		196,755
Total debt securities	$	441,121	$	5,586	$	1,170	$	445,537

Schedule of investment securities held-to-maturity

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



	March 31, 2020
(Dollars in thousands)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Estimated Fair Value
Debt securities available-for-sale:
Corporate bonds	$	213,148	$	1,214	$	8,596	$	205,766
Trust preferred securities	18,125		—		2,329		15,796
Agency collateralized mortgage obligations	25,983		1		325		25,659
Agency mortgage-backed securities	17,683		753		9		18,427
Agency debentures	8,967		555		—		9,522
Total debt securities available-for-sale	283,906		2,523		11,259		275,170
Debt securities held-to-maturity:
Corporate bonds	22,177		575		12		22,740
Agency debentures ⁽¹⁾	271,743		1,091		—		272,834
Municipal bonds	14,575		121		—		14,696
Agency mortgage-backed securities	4,347		719		—		5,066
Total debt securities held-to-maturity	312,842		2,506		12		315,336
Total debt securities	$	596,748	$	5,029	$	11,271	$	590,506


⁽¹⁾	Balance includes $20 million of unsettled transactions.



	December 31, 2019
(Dollars in thousands)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Estimated Fair Value
Debt securities available-for-sale:
Corporate bonds	$	172,704	$	2,821	$	107	$	175,418
Trust preferred securities	18,092		216		48		18,260
Agency collateralized mortgage obligations	27,262		11		80		27,193
Agency mortgage-backed securities	18,058		451		—		18,509
Agency debentures	8,961		441		—		9,402
Total debt securities available-for-sale	245,077		3,940		235		248,782
Debt securities held-to-maturity:
Corporate bonds	24,678		619		—		25,297
Agency debentures	149,912		628		935		149,605
Municipal bonds	17,094		144		—		17,238
Agency mortgage-backed securities	4,360		255		—		4,615
Total debt securities held-to-maturity	196,044		1,646		935		196,755
Total debt securities	$	441,121	$	5,586	$	1,170	$	445,537

Interest income on investment securities

Interest income on investment securities was as follows:



	Three Months Ended March 31,
(Dollars in thousands)	2020		2019
Taxable interest income	$	3,391	$	3,872
Non-taxable interest income	112		104
Dividend income	398		377
Total interest income on investment securities	$	3,901	$	4,353

Schedule of contractual maturities of debt securities

As of March 31, 2020, the contractual maturities of the debt securities were:



	March 31, 2020
	Available-for-Sale				Held-to-Maturity
(Dollars in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in less than one year	$	53,698	$	53,423	$	4,824	$	4,834
Due from one to five years	98,325		96,411		87,424		87,785
Due from five to ten years	70,963		64,959		197,656		198,490
Due after ten years	60,920		60,377		22,938		24,227
Total debt securities	$	283,906	$	275,170	$	312,842	$	315,336

Schedule of proceeds and realized gains and losses from investments securities

Proceeds from the sale and call of debt securities available-for-sale and held-to-maturity and related gross realized gains and losses were:



	Available-for-Sale				Held-to-Maturity
	Three Months Ended March 31,				Three Months Ended March 31,
(Dollars in thousands)	2020		2019		2020		2019
Proceeds from sales	$	49,967	$	—	$	—	$	—
Proceeds from calls	—		1,224		122,353		21,460
Total proceeds	$	49,967	$	1,224	$	122,353	$	21,460

Gross realized gains	$	15	$	17	$	42	$	11
Gross realized losses	—		—		—		—
Net realized gains	$	15	$	17	$	42	$	11

Schedule of fair value and gross unrealized losses on investment debt securities

The following tables show the fair value and gross unrealized losses on temporarily impaired debt 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 March 31, 2020 and December 31, 2019, respectively:



	March 31, 2020
	Less than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Debt securities available-for-sale:
Corporate bonds	$	125,170	$	6,582	$	17,986	$	2,014	$	143,156	$	8,596
Trust preferred securities	15,795		2,329		—		—		15,795		2,329
Agency collateralized mortgage obligations	3,794		41		21,188		284		24,982		325
Agency mortgage-backed securities	1,289		9		—		—		1,289		9
Total debt securities available-for-sale	146,048		8,961		39,174		2,298		185,222		11,259
Debt securities held-to-maturity:
Corporate bonds	4,489		12		—		—		4,489		12
Total debt securities held-to-maturity	4,489		12		—		—		4,489		12
Total temporarily impaired debt securities ⁽¹⁾	$	150,537	$	8,973	$	39,174	$	2,298	$	189,711	$	11,271


⁽¹⁾	The number of investment positions with unrealized losses totaled 63 for available-for-sale securities and 4 for held-to-maturity securities.



	December 31, 2019
	Less than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Debt securities available-for-sale:
Corporate bonds	$	4,942	$	58	$	19,951	$	49	$	24,893	$	107
Trust preferred securities	—		—		4,417		48		4,417		48
Agency collateralized mortgage obligations	22,117		66		2,544		14		24,661		80
Total debt securities available-for-sale	27,059		124		26,912		111		53,971		235
Debt securities held-to-maturity:
Agency debentures	87,879		935		—		—		87,879		935
Total debt securities held-to-maturity	87,879		935		—		—		87,879		935
Total temporarily impaired debt securities ⁽¹⁾	$	114,938	$	1,059	$	26,912	$	111	$	141,850	$	1,170


⁽¹⁾	The number of investment positions with unrealized losses totaled 86 for available-for-sale securities and 53 for held-to-maturity securities.

Loans and Leases (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Schedule of loans receivable

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



	March 31, 2020
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate			Total
Loans and leases held-for-investment, before deferred fees and costs	$	3,908,672		$	1,186,242		$	1,856,183		$	6,951,097
Deferred loan costs (fees)	6,883			4,862			(4,693		)	7,052
Loans and leases held-for-investment, net of deferred fees and costs	3,915,555			1,191,104			1,851,490			6,958,149
Allowance for loan and lease losses	(2,174		)	(6,685		)	(8,445		)	(17,304		)
Loans and leases held-for-investment, net	$	3,913,381		$	1,184,419		$	1,843,045		$	6,940,845



	December 31, 2019
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate			Total
Loans and leases held-for-investment, before deferred fees and costs	$	3,688,779		$	1,080,767		$	1,801,375		$	6,570,921
Deferred loan costs (fees)	6,623			4,942			(4,927		)	6,638
Loans and leases held-for-investment, net of deferred fees and costs	3,695,402			1,085,709			1,796,448			6,577,559
Allowance for loan and lease losses	(1,973		)	(5,262		)	(6,873		)	(14,108		)
Loans and leases held-for-investment, net	$	3,693,429		$	1,080,447		$	1,789,575		$	6,563,451

Allowance for Loan and Lease Losses (Tables)

3 Months Ended

Mar. 31, 2020

Allowance for Loan and Lease Losses [Abstract]

Schedule of investment in loans by credit quality indicator

The following tables present the recorded investment in loans by credit quality indicator:



	March 31, 2020
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Pass	$	3,912,060	$	1,175,517	$	1,835,993	$	6,923,570
Special mention	—		15,587		4,872		20,459
Substandard	3,495		—		10,625		14,120
Loans and leases held-for-investment	$	3,915,555	$	1,191,104	$	1,851,490	$	6,958,149



	December 31, 2019
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Pass	$	3,691,866	$	1,069,932	$	1,780,768	$	6,542,566
Special mention	—		15,777		14,284		30,061
Substandard	3,536		—		1,396		4,932
Loans and leases held-for-investment	$	3,695,402	$	1,085,709	$	1,796,448	$	6,577,559

Schedule of change in allowance for loan losses

Changes in the allowance for loan and lease losses were as follows for the three months ended March 31, 2020 and 2019:



	Three Months Ended March 31, 2020
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Balance, beginning of period	$	1,973	$	5,262	$	6,873	$	14,108
Provision (credit) for loan losses	201		1,220		1,572		2,993
Charge-offs	—		—		—		—
Recoveries	—		203		—		203
Balance, end of period	$	2,174	$	6,685	$	8,445	$	17,304



	Three Months Ended March 31, 2019
(Dollars in thousands)	Private Banking		Commercial and Industrial			Commercial Real Estate		Total
Balance, beginning of period	$	1,942	$	5,764		$	5,502	$	13,208
Provision (credit) for loan losses	59		(604		)	168		(377		)
Charge-offs	—		—			—		—
Recoveries	—		1,881			—		1,881
Balance, end of period	$	2,001	$	7,041		$	5,670	$	14,712

Schedule of past due loans segregated by class of loan

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



	March 31, 2020
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total
Private banking	$	450	$	206	$	184	$	840	$	3,914,715	$	3,915,555
Commercial and industrial	—		—		—		—		1,191,104		1,191,104
Commercial real estate	—		—		—		—		1,851,490		1,851,490
Loans and leases held-for-investment	$	450	$	206	$	184	$	840	$	6,957,309	$	6,958,149



	December 31, 2019
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total
Private banking	$	261	$	—	$	184	$	445	$	3,694,957	$	3,695,402
Commercial and industrial	—		—		—		—		1,085,709		1,085,709
Commercial real estate	—		—		—		—		1,796,448		1,796,448
Loans and leases held-for-investment	$	261	$	—	$	184	$	445	$	6,577,114	$	6,577,559

Schedule of investment in loans considered to be impaired

The following tables present the Company’s investment in loans considered to be impaired and related information on those impaired loans:



	As of and for the Three Months Ended March 31, 2020
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With a related allowance recorded:
Private banking	$	171	$	193	$	171	$	171	$	—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total with a related allowance recorded	171		193		171		171		—
Without a related allowance recorded:
Private banking	13		13		—		13		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total without a related allowance recorded	13		13		—		13		—
Total:
Private banking	184		206		171		184		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total	$	184	$	206	$	171	$	184	$	—



	As of and for the Twelve Months Ended December 31, 2019
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With a related allowance recorded:
Private banking	$	171	$	193	$	171	$	171	$	—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total with a related allowance recorded	171		193		171		171		—
Without a related allowance recorded:
Private banking	13		13		—		13		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total without a related allowance recorded	13		13		—		13		—
Total:
Private banking	184		206		171		184		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total	$	184	$	206	$	171	$	184	$	—

Schedule of allowance for credit losses and investment in loans by class

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



	March 31, 2020
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Allowance for loan and lease losses:
Individually evaluated for impairment	$	171	$	—	$	—	$	171
Collectively evaluated for impairment	2,003		6,685		8,445		17,133
Total allowance for loan and lease losses	$	2,174	$	6,685	$	8,445	$	17,304
Loans and leases held-for-investment:
Individually evaluated for impairment	$	184	$	—	$	—	$	184
Collectively evaluated for impairment	3,915,371		1,191,104		1,851,490		6,957,965
Loans and leases held-for-investment	$	3,915,555	$	1,191,104	$	1,851,490	$	6,958,149



	December 31, 2019
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Allowance for loan and lease losses:
Individually evaluated for impairment	$	171	$	—	$	—	$	171
Collectively evaluated for impairment	1,802		5,262		6,873		13,937
Total allowance for loan and lease losses	$	1,973	$	5,262	$	6,873	$	14,108
Loans and leases held-for-investment:
Individually evaluated for impairment	$	184	$	—	$	—	$	184
Collectively evaluated for impairment	3,695,218		1,085,709		1,796,448		6,577,375
Loans and leases held-for-investment	$	3,695,402	$	1,085,709	$	1,796,448	$	6,577,559

Deposits (Tables)

3 Months Ended

Mar. 31, 2020

Deposits [Abstract]

Schedule of deposits

As of March 31, 2020 and December 31, 2019, deposits were comprised of the following:



	Interest Rate Range	Weighted Average Interest Rate		Balance
(Dollars in thousands)	March 31, 2020	March 31, 2020	December 31, 2019	March 31, 2020		December 31, 2019
Demand and savings accounts:
Noninterest-bearing checking accounts	—	—	—	$	362,075	$	356,102
Interest-bearing checking accounts	0.05 to 1.86%	0.49%	1.57%	2,195,824		1,398,264
Money market deposit accounts	0.10 to 3.25%	0.90%	1.84%	3,783,842		3,426,745
Total demand and savings accounts				6,341,741		5,181,111
Certificates of deposit	0.65 to 3.25%	1.84%	2.24%	1,441,018		1,453,502
Total deposits				$	7,782,759	$	6,634,613
Weighted average rate on interest-bearing accounts		0.96%	1.87%

Schedule of maturities of time deposits

The contractual maturity of certificates of deposit was as follows:



(Dollars in thousands)	March 31, 2020		December 31, 2019
12 months or less	$	1,325,423	$	1,244,838
12 months to 24 months	95,403		168,437
24 months to 36 months	20,192		40,227
Total	$	1,441,018	$	1,453,502

Schedule of interest expense on deposits by type of deposit

Interest expense on deposits was as follows:



	Three Months Ended March 31,
(Dollars in thousands)	2020		2019
Interest-bearing checking accounts	$	5,214	$	4,542
Money market deposit accounts	14,655		16,540
Certificates of deposit	7,375		8,251
Total interest expense on deposits	$	27,244	$	29,333

Borrowings (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of borrowings

As of March 31, 2020 and December 31, 2019, borrowings were comprised of the following:



	March 31, 2020				December 31, 2019
(Dollars in thousands)	Interest Rate	Ending Balance		Maturity Date	Interest Rate	Ending Balance		Maturity Date
FHLB borrowings:
FHLB line of credit	—%	$	—		1.81%	$	55,000	5/1/2020
Issued 3/20/2020	0.67%	50,000		6/22/2020	—%	—
Issued 3/02/2020	1.68%	50,000		6/2/2020	—%	—
Issued 3/02/2020	1.68%	150,000		6/1/2020	—%	—
Issued 1/08/2020	1.84%	50,000		4/8/2020	—%	—
Issued 12/12/2019	—%	—			1.85%	100,000		1/13/2020
Issued 12/02/2019	—%	—			1.91%	150,000		3/2/2020
Issued 10/08/2019		—			2.00%	50,000		1/8/2020
Line of credit borrowings	4.25%	30,000		10/17/2020		—
Total borrowings, net		$	330,000			$	355,000

Schedule of interest expense on borrowings

Interest expense on borrowings was as follows:



	Three Months Ended March 31,
(Dollars in thousands)	2020		2019
FHLB borrowings	$	2,035	$	2,585
Line of credit borrowings	1		58
Subordinated notes payable	—		554
Total interest expense on borrowings	$	2,036	$	3,197

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Stock Transactions (Tables)

3 Months Ended

Mar. 31, 2020

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

Schedule of preferred and common shares, activity

The tables below show the changes in the Company’s preferred and common shares outstanding during the periods indicated:



	Number of Preferred Shares Outstanding	Number of Common Shares Outstanding
Balance, December 31, 2018	40,250	28,878,674
Issuance of preferred stock	—	—
Issuance of restricted common stock	—	538,703
Forfeitures of restricted common stock	—	(61,474	)
Exercise of stock options	—	15,930
Purchase of treasury stock	—	(20,000	)
Balance, March 31, 2019	40,250	29,351,833

Balance, December 31, 2019	120,750	29,355,986
Issuance of restricted common stock	—	513,820
Forfeitures of restricted common stock	—	(3,500	)
Exercise of stock options	—	10,000
Purchase of treasury stock	—	(113,728	)
Balance, March 31, 2020	120,750	29,762,578

Regulatory Capital (Tables)

3 Months Ended

Mar. 31, 2020

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Schedule of compliance with regulatory capital requirements under banking regulations

The following tables set forth certain information concerning the Company’s and the Bank’s regulatory capital as of March 31, 2020 and December 31, 2019:



	March 31, 2020
	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	$	585,503	11.42	%	$	410,021	8.00	%	N/A		N/A
Bank	$	597,764	11.69	%	$	408,904	8.00	%	$	511,131	10.00	%
Tier 1 risk-based capital ratio
Company	$	567,487	11.07	%	$	307,516	6.00	%	N/A		N/A
Bank	$	579,748	11.34	%	$	306,678	6.00	%	$	408,904	8.00	%
Common equity tier 1 risk-based capital ratio
Company	$	451,408	8.81	%	$	230,637	4.50	%	N/A		N/A
Bank	$	579,748	11.34	%	$	230,009	4.50	%	$	332,235	6.50	%
Tier 1 leverage ratio
Company	$	567,487	7.19	%	$	315,811	4.00	%	N/A		N/A
Bank	$	579,748	7.36	%	$	315,172	4.00	%	$	393,966	5.00	%



	December 31, 2019
	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	$	572,221	12.05	%	$	379,911	8.00	%	N/A		N/A
Bank	$	547,532	11.57	%	$	378,623	8.00	%	$	473,279	10.00	%
Tier 1 risk-based capital ratio
Company	$	558,068	11.75	%	$	284,933	6.00	%	N/A		N/A
Bank	$	532,779	11.26	%	$	283,967	6.00	%	$	378,623	8.00	%
Common equity tier 1 risk-based capital ratio
Company	$	442,385	9.32	%	$	213,700	4.50	%	N/A		N/A
Bank	$	532,779	11.26	%	$	212,975	4.50	%	$	307,631	6.50	%
Tier 1 leverage ratio
Company	$	558,068	7.54	%	$	296,038	4.00	%	N/A		N/A
Bank	$	532,779	7.22	%	$	295,277	4.00	%	$	369,097	5.00	%

Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Schedule of earnings per share, basic and diluted

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



	Three Months Ended March 31,
(Dollars in thousands, except per share data)	2020		2019

Net income available to common shareholders	$	10,933	$	13,885
Weighted average common shares outstanding:
Basic	28,180,589		27,832,839
Restricted stock - dilutive	427,404		538,711
Stock options - dilutive	236,851		332,086
Diluted	28,844,844		28,703,636

Earnings per common share:
Basic	$	0.39	$	0.50
Diluted	$	0.38	$	0.48

Schedule of antidilutive securities excluded from computation of earnings per share



	Three Months Ended March 31,
	2020	2019
Anti-dilutive shares ⁽¹⁾	545,320	146,579


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

Derivatives and Hedging Activity (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments in statement of financial position, fair value

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated statements of financial condition as of March 31, 2020 and December 31, 2019:



	Asset Derivatives			Liability Derivatives
	as of March 31, 2020			as of March 31, 2020
(Dollars in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate products	Other assets	$	21	Other liabilities	$	9,837

Derivatives not designated as hedging instruments:
Interest rate products	Other assets	157,938		Other liabilities	158,036

Total	Other assets	$	157,959	Other liabilities	$	167,873



	Asset Derivatives			Liability Derivatives
	as of December 31, 2019			as of December 31, 2019
(Dollars in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate products	Other assets	$	—	Other liabilities	$	2,184

Derivatives not designated as hedging instruments:
Interest rate products	Other assets	55,241		Other liabilities	55,289

Total	Other assets	$	55,241	Other liabilities	$	57,473

Schedule of offsetting derivative assets

The following tables show the impact legally enforceable master netting agreements had on the Company’s derivative financial instruments as of March 31, 2020 and December 31, 2019:



	Offsetting of Derivative Assets
	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
March 31, 2020	$	157,959	$	—	$	157,959	$	(32	)	$	—	$	157,927

December 31, 2019	$	55,241	$	—	$	55,241	$	(850	)	$	—	$	54,391

Schedule of offsetting derivative liabilities



	Offsetting of Derivative Liabilities
	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
March 31, 2020	$	167,873	$	—	$	167,873	$	(32	)	$	(167,250	)	$	591

December 31, 2019	$	57,473	$	—	$	57,473	$	(850	)	$	(55,753	)	$	870

Schedule of interest rate derivative transactions

Characteristics of the Company’s interest rate derivative transactions designated as cash flow hedges of interest rate risk as of March 31, 2020, were as follows:



(Dollars in thousands)	Notional Amount		Effective Rate ⁽¹⁾	Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months		Maturity Date	Remaining Term (in Months)
Interest rate products:
Issued 1/8/2018	$	50,000	2.21%	$	581	1/8/2021	9
Issued 5/30/2019	50,000		2.05%	731		6/1/2022	26
Issued 5/30/2019	50,000		2.03%	724		6/1/2023	38
Issued 5/30/2019	50,000		2.04%	729		6/1/2024	50
Issued 2/28/2020	50,000		0.98%	192		3/2/2025	59
Issued 3/20/2020	50,000		0.60%	10		3/20/2025	60
Total	$	300,000		$	2,967


⁽¹⁾	The effective rate is adjusted for the difference between the three-month FHLB advance rate and three-month LIBOR.

Schedule of derivative instruments, gain (loss) in statement of financial performance

The tables below present the effective portion of the Company’s cash flow hedge instruments in the unaudited condensed consolidated statements of income and accumulated other comprehensive income (loss):



		Three Months Ended March 31,					Three Months Ended March 31,
(Dollars in thousands)		2020			2019		2020			2019
Derivatives designated as hedging instruments:	Location of Gain (Loss) Recognized in Income on Derivatives	Realized Gain (Loss) Recognized in Income on Derivatives					Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives
Interest rate products	Interest expense	$	(159	)	$	561	$	(7,711	)	$	(206	)

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



		Three Months Ended March 31,
(Dollars in thousands)		2020			2019
Derivatives not designated as hedging instruments:	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
Interest rate products	Non-interest income	$	(61	)	$	(20	)

Disclosures About Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of fair value, assets and liabilities measured on recurring basis

The following tables represent assets and liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019:



	March 31, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets / Liabilities at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds	$	—	$	205,766	$	—	$	205,766
Trust preferred securities	—		15,796		—		15,796
Agency collateralized mortgage obligations	—		25,659		—		25,659
Agency mortgage-backed securities	—		18,427		—		18,427
Agency debentures	—		9,522		—		9,522
Interest rate swaps	—		157,959		—		157,959
Total financial assets	—		433,129		—		433,129

Financial liabilities:
Interest rate swaps	—		167,873		—		167,873
Total financial liabilities	$	—	$	167,873	$	—	$	167,873



	December 31, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets / Liabilities at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds	$	—	$	175,418	$	—	$	175,418
Trust preferred securities	—		18,260		—		18,260
Agency collateralized mortgage obligations	—		27,193		—		27,193
Agency mortgage-backed securities	—		18,509		—		18,509
Agency debentures	—		9,402		—		9,402
Interest rate swaps	—		55,241		—		55,241
Total financial assets	—		304,023		—		304,023

Financial liabilities:
Interest rate swaps	—		57,473		—		57,473
Total financial liabilities	$	—	$	57,473	$	—	$	57,473

Schedule of fair value measurements, nonrecurring

The following tables represent the balances of assets measured at fair value on a non-recurring basis as of March 31, 2020 and December 31, 2019:



	March 31, 2020
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets at Fair Value
Loans measured for impairment, net	$	—	$	—	$	13	$	13
Other real estate owned	—		—		4,250		4,250
Total assets	$	—	$	—	$	4,263	$	4,263



	December 31, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets at Fair Value
Loans measured for impairment, net	$	—	$	—	$	13	$	13
Other real estate owned	—		—		4,250		4,250
Total assets	$	—	$	—	$	4,263	$	4,263

Schedule of fair value inputs, assets, quantitative information

The following tables present additional quantitative information about assets measured at fair value on a recurring and non-recurring basis and for which we have utilized Level 3 inputs to determine fair value as of March 31, 2020 and December 31, 2019:



	March 31, 2020
(Dollars in thousands)	Fair Value		Valuation Techniques ⁽¹⁾	Significant Unobservable Inputs	Weighted Average Discount Rate
Loans measured for impairment, net	$	13	Collateral	Appraisal value and discount due to salability conditions	—%

Other real estate owned	$	4,250	Collateral	Appraisal value and discount due to salability conditions	17%


⁽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 of ongoing operations if the loan is not collateral dependent.



	December 31, 2019
(Dollars in thousands)	Fair Value		Valuation Techniques ⁽¹⁾	Significant Unobservable Inputs	Weighted Average Multiple/ Discount Rate
Loans measured for impairment, net	$	13	Collateral	Appraisal value and discount due to salability conditions	—%

Other real estate owned	$	4,250	Collateral	Appraisal value and discount due to salability conditions	17%


⁽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 of ongoing operations if the loan is not collateral dependent.

Schedule of fair and carrying value of financial assets and liabilities

The following table summarizes of the carrying amounts and estimated fair values of financial instruments:



		March 31, 2020				December 31, 2019
(Dollars in thousands)	Fair Value Level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	1	$	1,010,128	$	1,010,128	$	403,855	$	403,855
Debt securities available-for-sale	2	275,170		275,170		248,782		248,782
Debt securities held-to-maturity	2	312,842		315,336		196,044		196,755
Federal Home Loan Bank stock	2	18,724		18,724		24,324		24,324
Loans and leases held-for-investment, net	3	6,940,845		6,967,244		6,563,451		6,548,432
Accrued interest receivable	2	22,106		22,106		22,326		22,326
Investment management fees receivable, net	2	6,656		6,656		7,560		7,560
Bank owned life insurance	2	70,472		70,472		70,044		70,044
Other real estate owned	3	4,250		4,250		4,250		4,250
Interest rate swaps	2	157,959		157,959		55,241		55,241

Financial liabilities:
Deposits	2	$	7,782,759	$	7,808,249	$	6,634,613	$	6,648,546
Borrowings, net	2	330,000		330,400		355,000		355,003
Interest rate swaps	2	167,873		167,873		57,473		57,473

Changes in Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Schedule of changes in accumulated other comprehensive income (loss)

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



	Three Months Ended March 31,
	2020									2019
(Dollars in thousands)	Debt Securities			Derivatives			Total			Debt Securities			Derivatives			Total
Balance, beginning of period	$	2,756		$	(1,624	)	$	1,132		$	(2,363	)	$	1,032		$	(1,331	)
Change in unrealized holding gains (losses)	(9,422		)	(5,874		)	(15,296		)	2,430			(162		)	2,268
Losses (gains) reclassified from other comprehensive income	(12		)	127			115			(13		)	(422		)	(435		)
Net other comprehensive income (loss)	(9,434		)	(5,747		)	(15,181		)	2,417			(584		)	1,833
Balance, end of period	$	(6,678	)	$	(7,371	)	$	(14,049	)	$	54		$	448		$	502

Segments (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Schedule of segment reporting information, by segment

The following tables provide financial information for the two segments of the Company as of and for the periods indicated. The information provided under the caption “Parent and Other” represents general operating activity of the Company not considered to be a reportable segment, which includes parent company activity as well as eliminations and adjustments that are necessary for purposes of reconciliation to the consolidated amounts.



(Dollars in thousands)	March 31, 2020			December 31, 2019
Assets:
Bank	$	8,915,114		$	7,686,981
Investment management	83,238			83,295
Parent and other	(8,291		)	(4,466		)
Total assets	$	8,990,061		$	7,765,810



	Three Months Ended March 31, 2020										Three Months Ended March 31, 2019
(Dollars in thousands)	Bank		Investment Management			Parent and Other			Consolidated		Bank			Investment Management		Parent and Other			Consolidated
Income statement data:
Interest income	$	64,202	$	—		$	—		$	64,202	$	62,830		$	—	$	72		$	62,902
Interest expense	29,296		—			(16		)	29,280		31,919			—		611			32,530
Net interest income (loss)	34,906		—			16			34,922		30,911			—		(539		)	30,372
Provision (credit) for loan and lease losses	2,993		—			—			2,993		(377		)	—		—			(377		)
Net interest income (loss) after provision for loan and lease losses	31,913		—			16			31,929		31,288			—		(539		)	30,749
Non-interest income:
Investment management fees	—		7,765			(127		)	7,638		—			9,533		(109		)	9,424
Net gain on the sale and call of debt securities	57		—			—			57		28			—		—			28
Other non-interest income (loss)	5,652		(31		)	—			5,621		2,877			21		719			3,617
Total non-interest income (loss)	5,709		7,734			(127		)	13,316		2,905			9,554		610			13,069
Non-interest expense:
Intangible amortization expense	—		502			—			502		—			502		—			502
Other non-interest expense	21,034		6,626			982			28,642		19,021			7,058		91			26,170
Total non-interest expense	21,034		7,128			982			29,144		19,021			7,560		91			26,672
Income (loss) before tax	16,588		606			(1,093		)	16,101		15,172			1,994		(20		)	17,146
Income tax expense (benefit)	3,348		28			(170		)	3,206		2,024			563		(5		)	2,582
Net income (loss)	$	13,240	$	578		$	(923	)	$	12,895	$	13,148		$	1,431	$	(15	)	$	14,564

Basis of Information and Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended
	Mar. 31, 2020 USD ($) offices portfolio subsidiary	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)
Significant Accounting Policies [Line Items]
Number of wholly owned subsidiaries \| subsidiary	3
Number of loan portfolios \| portfolio	3
Bad debt expense \| $	$ 0	$ 0
Allowance for uncollectible accounts \| $	$ 0		$ 0
Maximum
Significant Accounting Policies [Line Items]
Original maturity of short-term investments (in days)	90 days
Estimated useful lives of intangible assets (in years)	25 years
Estimated useful lives of office properties and equipment (in years)	10 years
Minimum
Significant Accounting Policies [Line Items]
Past due period for loans (in days)	90 days
Consecutive period loan is current (in months)	6 months
Estimated useful lives of intangible assets (in years)	4 years
Estimated useful lives of office properties and equipment (in years)	3 years
Bank
Significant Accounting Policies [Line Items]
Number of wholly owned subsidiaries \| subsidiary	2
Number of representative offices, additional to main office \| offices	4

Investment Securities - Investment Types (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Debt securities available-for-sale:
Amortized Cost	$ 283,906		$ 245,077
Gross Unrealized Appreciation	2,523		3,940
Gross Unrealized Depreciation	11,259		235
Debt securities available-for-sale	275,170		248,782
Debt securities held-to-maturity:
Amortized Cost	312,842		196,044
Gross Unrealized Appreciation	2,506		1,646
Gross Unrealized Depreciation	12		935
Estimated Fair Value	315,336		196,755
Amortized Cost	596,748		441,121
Gross Unrealized Appreciation	5,029		5,586
Gross Unrealized Depreciation	11,271		1,170
Estimated Fair Value	590,506		445,537
Unsettled purchase of debt securities held-to-maturity	20,000	$ 0
Corporate bonds
Debt securities available-for-sale:
Amortized Cost	213,148		172,704
Gross Unrealized Appreciation	1,214		2,821
Gross Unrealized Depreciation	8,596		107
Debt securities available-for-sale	205,766		175,418
Debt securities held-to-maturity:
Amortized Cost	22,177		24,678
Gross Unrealized Appreciation	575		619
Gross Unrealized Depreciation	12		0
Estimated Fair Value	22,740		25,297
Trust preferred securities
Debt securities available-for-sale:
Amortized Cost	18,125		18,092
Gross Unrealized Appreciation	0		216
Gross Unrealized Depreciation	2,329		48
Debt securities available-for-sale	15,796		18,260
Agency collateralized mortgage obligations
Debt securities available-for-sale:
Amortized Cost	25,983		27,262
Gross Unrealized Appreciation	1		11
Gross Unrealized Depreciation	325		80
Debt securities available-for-sale	25,659		27,193
Agency mortgage-backed securities
Debt securities available-for-sale:
Amortized Cost	17,683		18,058
Gross Unrealized Appreciation	753		451
Gross Unrealized Depreciation	9		0
Debt securities available-for-sale	18,427		18,509
Debt securities held-to-maturity:
Amortized Cost	4,347		4,360
Gross Unrealized Appreciation	719		255
Gross Unrealized Depreciation	0		0
Estimated Fair Value	5,066		4,615
Agency debentures
Debt securities available-for-sale:
Amortized Cost	8,967		8,961
Gross Unrealized Appreciation	555		441
Gross Unrealized Depreciation	0		0
Debt securities available-for-sale	9,522		9,402
Debt securities held-to-maturity:
Amortized Cost	271,743		149,912
Gross Unrealized Appreciation	1,091		628
Gross Unrealized Depreciation	0		935
Estimated Fair Value	272,834		149,605
Unsettled purchase of debt securities held-to-maturity	20,000
Municipal bonds
Debt securities held-to-maturity:
Amortized Cost	14,575		17,094
Gross Unrealized Appreciation	121		144
Gross Unrealized Depreciation	0		0
Estimated Fair Value	$ 14,696		$ 17,238

Investment Securities - Interest Income on Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Taxable interest income	$ 3,391	$ 3,872
Non-taxable interest income	112	104
Dividend income	398	377
Total interest income on investment securities	$ 3,901	$ 4,353

Investment Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Available-for-sale Securities, Debt Maturities, Amortized Cost
Due in less than one year	$ 53,698
Due from one to five years	98,325
Due from five to ten years	70,963
Due after ten years	60,920
Amortized Cost	283,906	$ 245,077
Available-for-sale Securities, Debt Maturities, Estimated Fair Value
Due in less than one year	53,423
Due from one to five years	96,411
Due from five to ten years	64,959
Due after ten years	60,377
Estimated Fair Value	275,170	248,782
Held-to-maturity Securities, Debt Maturities, Amortized Cost
Due in less than one year	4,824
Due from one to five years	87,424
Due from five to ten years	197,656
Due after ten years	22,938
Amortized Cost	312,842	196,044
Held-to-maturity Securities, Debt Maturities, Estimated Fair Value
Due in less than one year	4,834
Due from one to five years	87,785
Due from five to ten years	198,490
Due after ten years	24,227
Estimated Fair Value	$ 315,336	$ 196,755

Investment Securities - Narrative (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities with a contractual maturity due after ten years	$ 60,377,000
Floating rate available-for-sale securities with a contractual maturity due after ten years	$ 34,200,000
Percent of floating rate available-for-sale securities with a contractual maturity due after ten years	56.70%
Held-to-maturity securities, debt maturities due from five to ten years	$ 197,656,000
Held-to-maturity securities, debt maturities due from five to ten years, callable	15,800,000
Held-to-maturity securities pledged as collateral	14,100,000
Debt securities trading	0	$ 0
Federal Home Loan Bank stock	18,724,000	$ 24,324,000
Federal Home Loan Bank
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities available to be pledged as collateral for borrowings	$ 2,600,000

Investment Securities - Gains and Losses on Sales and Calls of Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Proceeds from sale of available-for-sale securities	$ 49,967	$ 0
Proceeds from call of available-for-sale securities	0	1,224
Total proceeds from sale and call of available-for-sale securities	49,967	1,224
Gross realized gains on available-for-sale securities	15	17
Gross realized losses on available-for-sale securities	0	0
Net realized gains on sale and call of available-for-sale securities	15	17
Proceeds from sale of held-to-maturity securities	0	0
Proceeds from call of held-to-maturity securities	122,353	21,460
Total proceeds from sale and call of held-to-maturity securities	122,353	21,460
Gross realized gains on held-to-maturity securities	42	11
Gross realized losses on held-to-maturity securities	0	0
Net realized gains on sale and call of held-to-maturity securities	$ 42	$ 11

Investment Securities - Unrealized Losses (Details) $ in Thousands	Mar. 31, 2020 USD ($) position	Dec. 31, 2019 USD ($) position
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months	$ 146,048	$ 27,059
12 Months or More	39,174	26,912
Total	185,222	53,971
Unrealized losses, Debt securities available-for-sale
Less than 12 Months	8,961	124
12 Months or More	2,298	111
Total	11,259	235
Fair value, Debt securities held-to-maturity
Less than 12 Months	4,489	87,879
12 Months or More	0	0
Total	4,489	87,879
Unrealized losses, Debt securities held-to-maturity
Less than 12 Months	12	935
12 Months or More	0	0
Total	12	935
Less than 12 months, fair value, total impaired securities	150,537	114,938
Less than 12 months, unrealized losses, total impaired securities	8,973	1,059
12 months or more, fair value, total impaired securities	39,174	26,912
12 months or more, unrealized losses, total impaired securities	2,298	111
Total, fair value, total impaired securities	189,711	141,850
Total, unrealized losses, total impaired securities	$ 11,271	$ 1,170
Available-for-sale, number of positions in an unrealized loss position \| position	63	86
Held-to-maturity, number of positions in an unrealized loss position \| position	4	53
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months	$ 125,170	$ 4,942
12 Months or More	17,986	19,951
Total	143,156	24,893
Unrealized losses, Debt securities available-for-sale
Less than 12 Months	6,582	58
12 Months or More	2,014	49
Total	8,596	107
Fair value, Debt securities held-to-maturity
Less than 12 Months	4,489
12 Months or More	0
Total	4,489
Unrealized losses, Debt securities held-to-maturity
Less than 12 Months	12
12 Months or More	0
Total	12
Trust preferred securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months	15,795	0
12 Months or More	0	4,417
Total	15,795	4,417
Unrealized losses, Debt securities available-for-sale
Less than 12 Months	2,329	0
12 Months or More	0	48
Total	2,329	48
Agency collateralized mortgage obligations
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months	3,794	22,117
12 Months or More	21,188	2,544
Total	24,982	24,661
Unrealized losses, Debt securities available-for-sale
Less than 12 Months	41	66
12 Months or More	284	14
Total	325	80
Agency mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months	1,289
12 Months or More	0
Total	1,289
Unrealized losses, Debt securities available-for-sale
Less than 12 Months	9
12 Months or More	0
Total	$ 9
Agency debentures
Fair value, Debt securities held-to-maturity
Less than 12 Months		87,879
12 Months or More		0
Total		87,879
Unrealized losses, Debt securities held-to-maturity
Less than 12 Months		935
12 Months or More		0
Total		$ 935

Loans and Leases - Loans and Leases by Class (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, net of deferred fees and costs	$ 6,958,149	$ 6,577,559
Allowance for loan and lease losses	(17,304)	(14,108)	$ (14,712)	$ (13,208)
Loans and leases held-for-investment, net	6,940,845	6,563,451
Loans receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, before deferred fees and costs	6,951,097	6,570,921
Deferred loan costs (fees)	7,052	6,638
Loans and leases held-for-investment, net of deferred fees and costs	6,958,149	6,577,559
Allowance for loan and lease losses	(17,304)	(14,108)
Loans and leases held-for-investment, net	6,940,845	6,563,451
Private Banking
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, net of deferred fees and costs	3,915,555	3,695,402
Allowance for loan and lease losses	(2,174)	(1,973)	(2,001)	(1,942)
Private Banking \| Loans receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, before deferred fees and costs	3,908,672	3,688,779
Deferred loan costs (fees)	6,883	6,623
Loans and leases held-for-investment, net of deferred fees and costs	3,915,555	3,695,402
Allowance for loan and lease losses	(2,174)	(1,973)
Loans and leases held-for-investment, net	3,913,381	3,693,429
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, net of deferred fees and costs	1,191,104	1,085,709
Allowance for loan and lease losses	(6,685)	(5,262)	(7,041)	(5,764)
Commercial and Industrial \| Loans receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, before deferred fees and costs	1,186,242	1,080,767
Deferred loan costs (fees)	4,862	4,942
Loans and leases held-for-investment, net of deferred fees and costs	1,191,104	1,085,709
Allowance for loan and lease losses	(6,685)	(5,262)
Loans and leases held-for-investment, net	1,184,419	1,080,447
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, net of deferred fees and costs	1,851,490	1,796,448
Allowance for loan and lease losses	(8,445)	(6,873)	$ (5,670)	$ (5,502)
Commercial Real Estate \| Loans receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, before deferred fees and costs	1,856,183	1,801,375
Deferred loan costs (fees)	(4,693)	(4,927)
Loans and leases held-for-investment, net of deferred fees and costs	1,851,490	1,796,448
Allowance for loan and lease losses	(8,445)	(6,873)
Loans and leases held-for-investment, net	$ 1,843,045	$ 1,789,575

Loans and Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused commitments	$ 4,780,000		$ 4,910,000
Reserve for losses on unfunded commitments	712		645
Loans in the process of origination	37,700		20,700
Standby letters of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused commitments	70,600		$ 72,800
Standby letters of credit drawn	$ 35	$ 48

Allowance for Loan and Lease Losses - Narrative (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2020 USD ($) portfolio contract	Mar. 31, 2019 USD ($) loans	Dec. 31, 2019 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
Number of loan portfolios \| portfolio	3
Impaired loans	$ 184,000		$ 184,000
Interest income on impaired loans	0		0
Loans 90 days or more past due and still accruing	0		0
Related allowance on impaired loans	171,000		171,000
Unused commitments for loans modified as TDRs	0		0
Payment defaults for loans modified as TDRs	$ 0	$ 0
Loans newly designated as TDRs	0	0
Real estate acquired through foreclosure	$ 4,300,000		4,300,000
Mortgage loans in process of foreclosure	0
Non-accrual loans
Financing Receivable, Credit Quality Indicator [Line Items]
Recorded investment	$ 171,000		171,000
Minimum
Financing Receivable, Credit Quality Indicator [Line Items]
Past due period for loans (in days)	90 days
Private Banking
Financing Receivable, Credit Quality Indicator [Line Items]
Impaired loans	$ 184,000		184,000
Related allowance on impaired loans	$ 171,000		$ 171,000
Concentration risk, percentage \| Cash, marketable securities or cash value life insurance collateral risk \| Private Banking
Financing Receivable, Credit Quality Indicator [Line Items]
Percentage of private banking loans secured by cash and marketable securities	97.50%		97.40%

Allowance for Loan and Lease Losses - Credit Quality Indicator (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	$ 6,958,149	$ 6,577,559
Private Banking
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	3,915,555	3,695,402
Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	1,191,104	1,085,709
Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	1,851,490	1,796,448
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	6,923,570	6,542,566
Pass \| Private Banking
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	3,912,060	3,691,866
Pass \| Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	1,175,517	1,069,932
Pass \| Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	1,835,993	1,780,768
Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	20,459	30,061
Special mention \| Private Banking
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	0	0
Special mention \| Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	15,587	15,777
Special mention \| Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	4,872	14,284
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	14,120	4,932
Substandard \| Private Banking
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	3,495	3,536
Substandard \| Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	0	0
Substandard \| Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	$ 10,625	$ 1,396

Allowance for Loan and Lease Losses - Changes in Allowance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period	$ 14,108	$ 13,208
Provision (credit) for loan and lease losses	2,993	(377)
Charge-offs	0	0
Recoveries	203	1,881
Balance, end of period	17,304	14,712
Private Banking
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period	1,973	1,942
Provision (credit) for loan and lease losses	201	59
Charge-offs	0	0
Recoveries	0	0
Balance, end of period	2,174	2,001
Commercial and Industrial
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period	5,262	5,764
Provision (credit) for loan and lease losses	1,220	(604)
Charge-offs	0	0
Recoveries	203	1,881
Balance, end of period	6,685	7,041
Commercial Real Estate
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period	6,873	5,502
Provision (credit) for loan and lease losses	1,572	168
Charge-offs	0	0
Recoveries	0	0
Balance, end of period	$ 8,445	$ 5,670

Allowance for Loan and Lease Losses - Analysis of Past Due Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	$ 840	$ 445
Current	6,957,309	6,577,114
Loans and leases held-for-investment, net of deferred fees and costs	6,958,149	6,577,559
Private Banking
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	840	445
Current	3,914,715	3,694,957
Loans and leases held-for-investment, net of deferred fees and costs	3,915,555	3,695,402
Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
Current	1,191,104	1,085,709
Loans and leases held-for-investment, net of deferred fees and costs	1,191,104	1,085,709
Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
Current	1,851,490	1,796,448
Loans and leases held-for-investment, net of deferred fees and costs	1,851,490	1,796,448
30-59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	450	261
30-59 Days Past Due \| Private Banking
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	450	261
30-59 Days Past Due \| Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
30-59 Days Past Due \| Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
60-89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	206	0
60-89 Days Past Due \| Private Banking
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	206	0
60-89 Days Past Due \| Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
60-89 Days Past Due \| Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	184	184
90 Days or More Past Due \| Private Banking
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	184	184
90 Days or More Past Due \| Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
90 Days or More Past Due \| Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	$ 0	$ 0

Allowance for Loan and Lease Losses - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Recorded Investment
With a related allowance	$ 171	$ 171
Without a related allowance	13	13
Total	184	184
Unpaid Principal Balance
With a related allowance	193	193
Without a related allowance	13	13
Total	206	206
Related Allowance	171	171
Average Recorded Investment
With a related allowance	171	171
Without a related allowance	13	13
Total	184	184
Interest Income Recognized
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Private Banking
Recorded Investment
With a related allowance	171	171
Without a related allowance	13	13
Total	184	184
Unpaid Principal Balance
With a related allowance	193	193
Without a related allowance	13	13
Total	206	206
Related Allowance	171	171
Average Recorded Investment
With a related allowance	171	171
Without a related allowance	13	13
Total	184	184
Interest Income Recognized
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Commercial and Industrial
Recorded Investment
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Unpaid Principal Balance
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Related Allowance	0	0
Average Recorded Investment
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Interest Income Recognized
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Commercial Real Estate
Recorded Investment
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Unpaid Principal Balance
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Related Allowance	0	0
Average Recorded Investment
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Interest Income Recognized
With a related allowance	0	0
Without a related allowance	0	0
Total	$ 0	$ 0

Allowance for Loan and Lease Losses - Allowance (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Allowance for loan and lease losses:
Individually evaluated for impairment	$ 171	$ 171
Collectively evaluated for impairment	17,133	13,937
Total allowance for loan and lease losses	17,304	14,108
Loans and leases held-for-investment:
Individually evaluated for impairment	184	184
Collectively evaluated for impairment	6,957,965	6,577,375
Loans and leases held-for-investment, net of deferred fees and costs	6,958,149	6,577,559
Private Banking
Allowance for loan and lease losses:
Individually evaluated for impairment	171	171
Collectively evaluated for impairment	2,003	1,802
Total allowance for loan and lease losses	2,174	1,973
Loans and leases held-for-investment:
Individually evaluated for impairment	184	184
Collectively evaluated for impairment	3,915,371	3,695,218
Loans and leases held-for-investment, net of deferred fees and costs	3,915,555	3,695,402
Commercial and Industrial
Allowance for loan and lease losses:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	6,685	5,262
Total allowance for loan and lease losses	6,685	5,262
Loans and leases held-for-investment:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	1,191,104	1,085,709
Loans and leases held-for-investment, net of deferred fees and costs	1,191,104	1,085,709
Commercial Real Estate
Allowance for loan and lease losses:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	8,445	6,873
Total allowance for loan and lease losses	8,445	6,873
Loans and leases held-for-investment:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	1,851,490	1,796,448
Loans and leases held-for-investment, net of deferred fees and costs	$ 1,851,490	$ 1,796,448

Deposits - Schedule of Deposits by Type (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Interest Rate Range Domestic Deposit Liabilities [Abstract]
Interest-bearing checking accounts, interest rate minimum	0.05%
Interest-bearing checking accounts, interest rate maximum	1.86%
Money market deposit accounts, interest rate minimum	0.10%
Money market deposit accounts, interest rate maximum	3.25%
Certificates of deposit, interest rate minimum	0.65%
Certificates of deposit, interest rate maximum	3.25%
Weighted Average Interest Rate
Interest-bearing checking accounts	0.49%	1.57%
Money market deposit accounts	0.90%	1.84%
Certificates of deposit	1.84%	2.24%
Weighted average rate on interest-bearing accounts	0.96%	1.87%
Demand and savings accounts:
Noninterest-bearing checking accounts	$ 362,075	$ 356,102
Interest-bearing checking accounts	2,195,824	1,398,264
Money market deposit accounts	3,783,842	3,426,745
Total demand and savings accounts	6,341,741	5,181,111
Certificates of deposit	1,441,018	1,453,502
Total deposits	$ 7,782,759	$ 6,634,613

Deposits - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Deposits [Abstract]
Brokered deposits	$ 1,290.0	$ 766.6
Reciprocal non-brokered	938.9	857.9
Certificates of deposit, $100,000 or more, excluding brokered and reciprocal	521.9	551.5
Certificates of deposit, $250,000 or more, excluding brokered and reciprocal	$ 214.6	$ 233.5

Deposits - Contractual Maturities of Time Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Time Deposits, Rolling Year Maturity [Abstract]
12 months or less	$ 1,325,423	$ 1,244,838
12 months to 24 months	95,403	168,437
24 months to 36 months	20,192	40,227
Total	$ 1,441,018	$ 1,453,502

Deposits - Interest Expense on Deposits by Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest Expense, Deposits [Abstract]
Interest-bearing checking accounts	$ 5,214	$ 4,542
Money market deposit accounts	14,655	16,540
Certificates of deposit	7,375	8,251
Total interest expense on deposits	$ 27,244	$ 29,333

Borrowings - Schedule of Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Total debt	$ 330,000	$ 355,000
Federal Home Loan Bank advances \| Federal Home Loan Bank Borrowings, Issued 3/20/2020, Maturity 6/22/2020
Debt Instrument [Line Items]
Short term debt interest rate	0.67%
Short-term debt	$ 50,000
Federal Home Loan Bank advances \| Federal Home Loan Bank Borrowings, Issued 3/02/2020, Maturity 6/2/2020
Debt Instrument [Line Items]
Short term debt interest rate	1.68%
Short-term debt	$ 50,000
Federal Home Loan Bank advances \| Federal Home Loan Bank Borrowings, Issued 3/02/2020, Maturity 6/1/2020
Debt Instrument [Line Items]
Short term debt interest rate	1.68%
Short-term debt	$ 150,000
Federal Home Loan Bank advances \| Federal Home Loan Bank Borrowings, Issued 1/08/2020, Maturity 4/8/2020
Debt Instrument [Line Items]
Short term debt interest rate	1.84%
Short-term debt	$ 50,000
Federal Home Loan Bank advances \| Federal Home Loan Bank Borrowings, Maturity 5/1/2020
Debt Instrument [Line Items]
Short term debt interest rate		1.81%
Short-term debt		$ 55,000
Federal Home Loan Bank advances \| Federal Home Loan Bank Borrowings, Issued 12/12/2019, Maturity 1/13/2020
Debt Instrument [Line Items]
Short term debt interest rate		1.85%
Short-term debt		$ 100,000
Federal Home Loan Bank advances \| Federal Home Loan Bank Borrowings, Issued 12/02/2019, Maturity 3/2/2020
Debt Instrument [Line Items]
Short term debt interest rate		1.91%
Short-term debt		$ 150,000
Federal Home Loan Bank advances \| Federal Home Loan Bank Borrowings, Issued 10/08/2019, Maturity 1/8/2020
Debt Instrument [Line Items]
Short term debt interest rate		2.00%
Short-term debt		$ 50,000
Line of credit borrowings
Debt Instrument [Line Items]
Short term debt interest rate	4.25%
Short-term debt	$ 30,000	$ 0

Borrowings - Narrative (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Line of credit borrowings
Short-term Debt [Line Items]
Short-term debt	$ 30,000,000	$ 0
Federal Home Loan Bank
Short-term Debt [Line Items]
Pledged securities, for Federal Home Loan Bank	2,600,000
Texas Capital Bank \| Line of credit borrowings
Short-term Debt [Line Items]
Line of credit facility, current borrowing capacity	75,000,000
Bank subsidiary \| Federal Home Loan Bank advances
Short-term Debt [Line Items]
Short-term debt	300,000,000	355,000,000
Bank subsidiary \| Federal Home Loan Bank
Short-term Debt [Line Items]
Pledged securities, for Federal Home Loan Bank	2,600,000
Pledged loans receivable, for Federal Home Loan Bank	1,240,000,000
Bank subsidiary \| Federal Home Loan Bank \| Line of credit borrowings
Short-term Debt [Line Items]
Line of credit facility, current borrowing capacity	886,700,000
Bank subsidiary \| M&T Bank \| Line of credit borrowings
Short-term Debt [Line Items]
Line of credit facility, current borrowing capacity	10,000,000
Short-term debt	0	0
Bank subsidiary \| Texas Capital Bank \| Line of credit borrowings
Short-term Debt [Line Items]
Line of credit facility, current borrowing capacity	20,000,000
Short-term debt		$ 0
Bank subsidiary \| PNC Bank \| Financial Guarantee
Short-term Debt [Line Items]
Credit cards issued, notional amount	3,200,000
Bank subsidiary \| PNC Bank \| Line of credit borrowings
Short-term Debt [Line Items]
Line of credit facility, current borrowing capacity	$ 8,000,000

Borrowings - Interest Expense on Borrowings by Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Debt Instrument [Line Items]
Interest expense on borrowings	$ 2,036	$ 3,197
Subordinated notes payable
Debt Instrument [Line Items]
Interest expense on borrowings	0	554
FHLB borrowings
Debt Instrument [Line Items]
Interest expense on borrowings	2,035	2,585
Line of credit borrowings
Debt Instrument [Line Items]
Interest expense on borrowings	$ 1	$ 58

Stock Transactions - Narrative (Details) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended
	May 31, 2019 USD ($) $ / shares shares	Mar. 31, 2018 USD ($) $ / shares shares	Mar. 31, 2020 USD ($) $ / shares shares	Mar. 31, 2019 USD ($) $ / shares shares
Class of Stock [Line Items]
Dividends paid \| $			$ 1,962	$ 679
Shares repurchased (shares) \| shares			83,728
Cost of shares repurchased \| $			$ 2,579	433
Cost of shares repurchased in connection with exercise, net settlement or vesting of equity awards \| $			$ 2,100
Shares canceled in period (in shares) \| shares			212,447
Payments for cancellation of stock options \| $			$ 2,484	$ 0
Series B depositary share
Class of Stock [Line Items]
Issuance of shares (in shares) \| shares	3,220,000
Conversion from depository to preferred shares	0.025
Liquidation preference (usd per share) \| $ / shares	$ 25
Series B depositary share \| Public offering
Class of Stock [Line Items]
Issuance of shares (in shares) \| shares	3,220,000
Series B preferred stock
Class of Stock [Line Items]
Issuance of shares (in shares) \| shares	80,500
Dividend rate	6.375%
Liquidation preference (usd per share) \| $ / shares	$ 1,000
Net proceeds from issuance of preferred stock \| $	$ 77,600
Basis spread	4.088%
Dividends paid \| $			1,300
Series A depositary share
Class of Stock [Line Items]
Issuance of shares (in shares) \| shares		1,610,000
Conversion from depository to preferred shares		0.025
Liquidation preference (usd per share) \| $ / shares		$ 25
Series A depositary share \| Public offering
Class of Stock [Line Items]
Issuance of shares (in shares) \| shares		1,610,000
Series A preferred stock
Class of Stock [Line Items]
Issuance of shares (in shares) \| shares		40,250
Dividend rate		6.75%
Liquidation preference (usd per share) \| $ / shares		$ 1,000
Net proceeds from issuance of preferred stock \| $		$ 38,500
Basis spread				3.985%
Dividends paid \| $			$ 679	$ 679
Common Stock
Class of Stock [Line Items]
Shares repurchased (shares) \| shares			113,728	20,000
Common Stock \| Share Repurchase Program
Class of Stock [Line Items]
Stock repurchase program, remaining authorized repurchase amount \| $			$ 9,900
Shares repurchased (shares) \| shares			30,000	20,000
Cost of shares repurchased \| $			$ 520	$ 433
Average cost per share (usd per share) \| $ / shares			$ 17.33	$ 21.66

Stock Transactions - Shares Outstanding Activity (Details) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Number of Shares Outstanding [Rollforward]
Purchase of treasury stock	(83,728)
Preferred Shares
Number of Shares Outstanding [Rollforward]
Balance, beginning of period (shares)	120,750	40,250
Issuance of preferred stock		0
Balance, ending of period (shares)	120,750	40,250
Common Stock
Number of Shares Outstanding [Rollforward]
Balance, beginning of period (shares)	29,355,986	28,878,674
Issuance of restricted common stock	513,820	538,703
Forfeitures of restricted common stock	(3,500)	(61,474)
Exercise of stock options	10,000	15,930
Purchase of treasury stock	(113,728)	(20,000)
Balance, ending of period (shares)	29,762,578	29,351,833

Regulatory Capital - Narrative (Details)	3 Months Ended
Regulatory Capital - Narrative (Details)	Mar. 31, 2020	Dec. 31, 2019
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
Percentage conservation buffer required for capital adequacy to risk weighted assets, fully phased-in	2.50%
Percentage capital conservation buffer	2.50%	2.50%

Regulatory Capital - Regulatory Capital Requirements (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Total risk-based capital (Amount)
Total risk-based capital	$ 585,503	$ 572,221
Total risk-based capital required for capital adequacy	$ 410,021	$ 379,911
Total risk-based capital (Ratio)
Total risk-based capital, ratio	11.42%	12.05%
Total risk-based capital required for capital adequacy, ratio	8.00%	8.00%
Tier 1 risk-based capital (Amount)
Tier 1 risk-based capital	$ 567,487	$ 558,068
Tier 1 risk-based capital required for capital adequacy	$ 307,516	$ 284,933
Tier 1 risk-based capital (Ratio)
Tier 1 risk-based capital, ratio	11.07%	11.75%
Tier 1 risk-based capital required for capital adequacy, ratio	6.00%	6.00%
Common Equity Tier One Risk Based Capital (Amount)
Common equity tier 1 risk-based capital	$ 451,408	$ 442,385
Common equity tier 1 risk-based capital required for capital adequacy	$ 230,637	$ 213,700
Common Equity Tier One Risk Based Capital (Ratio)
Common equity tier 1 risk-based capital, ratio	8.81%	9.32%
Common equity tier 1 risk-based capital required for capital adequacy, ratio	4.50%	4.50%
Tier 1 leverage (Amount)
Tier 1 leverage capital	$ 567,487	$ 558,068
Tier 1 leverage capital required for capital adequacy	$ 315,811	$ 296,038
Tier 1 leverage (Ratio)
Tier 1 leverage capital, ratio	7.19%	7.54%
Tier 1 leverage capital required for capital adequacy, ratio	4.00%	4.00%
Bank subsidiary
Total risk-based capital (Amount)
Total risk-based capital	$ 597,764	$ 547,532
Total risk-based capital required for capital adequacy	408,904	378,623
Total risk-based capital required to be well capitalized	$ 511,131	$ 473,279
Total risk-based capital (Ratio)
Total risk-based capital, ratio	11.69%	11.57%
Total risk-based capital required for capital adequacy, ratio	8.00%	8.00%
Total risk-based capital required to be well capitalized, ratio	10.00%	10.00%
Tier 1 risk-based capital (Amount)
Tier 1 risk-based capital	$ 579,748	$ 532,779
Tier 1 risk-based capital required for capital adequacy	306,678	283,967
Tier 1 risk-based capital required to be well capitalized	$ 408,904	$ 378,623
Tier 1 risk-based capital (Ratio)
Tier 1 risk-based capital, ratio	11.34%	11.26%
Tier 1 risk-based capital required for capital adequacy, ratio	6.00%	6.00%
Tier 1 risk-based capital required to be well capitalized, ratio	8.00%	8.00%
Common Equity Tier One Risk Based Capital (Amount)
Common equity tier 1 risk-based capital	$ 579,748	$ 532,779
Common equity tier 1 risk-based capital required for capital adequacy	230,009	212,975
Common equity tier 1 risk-based capital required to be well capitalized	$ 332,235	$ 307,631
Common Equity Tier One Risk Based Capital (Ratio)
Common equity tier 1 risk-based capital, ratio	11.34%	11.26%
Common equity tier 1 risk-based capital required for capital adequacy, ratio	4.50%	4.50%
Common equity tier 1 risk-based capital required to be well capitalized, ratio	6.50%	6.50%
Tier 1 leverage (Amount)
Tier 1 leverage capital	$ 579,748	$ 532,779
Tier 1 leverage capital required for capital adequacy	315,172	295,277
Tier 1 leverage capital required to be well capitalized	$ 393,966	$ 369,097
Tier 1 leverage (Ratio)
Tier 1 leverage capital, ratio	7.36%	7.22%
Tier 1 leverage capital required for capital adequacy, ratio	4.00%	4.00%
Tier 1 leverage capital required to be well capitalized, ratio	5.00%	5.00%

Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Net income available to common shareholders	$ 10,933	$ 13,885
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Basic weighted average common shares outstanding (shares)	28,180,589	27,832,839
Restricted stock - dilutive (shares)	427,404	538,711
Stock options - dilutive (shares)	236,851	332,086
Diluted weighted average common shares outstanding (shares)	28,844,844	28,703,636
Earnings per common share:
Earnings per common share, basic (in usd per share)	$ 0.39	$ 0.50
Earnings per common share, diluted (in usd per share)	$ 0.38	$ 0.48
Anti-dilutive shares (shares)	545,320	146,579

Derivatives and Hedging Activity - Financial Position, Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Derivatives, Fair Value [Line Items]
Asset derivatives, fair value	$ 157,959	$ 55,241
Liability derivatives, fair value	167,873	57,473
Other assets
Derivatives, Fair Value [Line Items]
Asset derivatives, fair value	157,959	55,241
Other liabilities
Derivatives, Fair Value [Line Items]
Liability derivatives, fair value	167,873	57,473
Designated as hedging instrument \| Other assets \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Asset derivatives, fair value	21	0
Designated as hedging instrument \| Other liabilities \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Liability derivatives, fair value	9,837	2,184
Not designated as hedging instrument \| Other assets \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Asset derivatives, fair value	157,938	55,241
Not designated as hedging instrument \| Other liabilities \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Liability derivatives, fair value	$ 158,036	$ 55,289

Derivatives and Hedging Activity - Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross Amounts of Recognized Assets	$ 157,959	$ 55,241
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Assets presented in the Statement of Financial Position	157,959	55,241
Financial Instruments	(32)	(850)
Cash Collateral Received	0	0
Net Amount	$ 157,927	$ 54,391

Derivatives and Hedging Activity - Offsetting of Derivative Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross Amounts of Recognized Liabilities	$ 167,873	$ 57,473
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Liabilities presented in the Statement of Financial Position	167,873	57,473
Financial Instruments	(32)	(850)
Cash Collateral Posted	(167,250)	(55,753)
Net Amount	$ 591	$ 870

Derivatives and Hedging Activity - Interest Rate Derivative Transactions (Details) - Cash flow hedging - Interest rate swaps - Designated as hedging instrument $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Derivative [Line Items]
Notional Amount	$ 300,000
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months	2,967
Issued 1/8/2018, Maturity 1/8/2021
Derivative [Line Items]
Notional Amount	$ 50,000
Effective Rate	2.21%
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months	$ 581
Remaining Term (in Months)	9 months
Issued 5/30/2019, Maturity 6/1/2022
Derivative [Line Items]
Notional Amount	$ 50,000
Effective Rate	2.05%
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months	$ 731
Remaining Term (in Months)	26 months
Issued 5/30/2019, Maturity 6/1/2023
Derivative [Line Items]
Notional Amount	$ 50,000
Effective Rate	2.03%
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months	$ 724
Remaining Term (in Months)	38 months
Issued 5/30/2019, Maturity 6/1/2024
Derivative [Line Items]
Notional Amount	$ 50,000
Effective Rate	2.04%
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months	$ 729
Remaining Term (in Months)	50 months
Issued 2/28/2020, Maturity 3/2/2025
Derivative [Line Items]
Notional Amount	$ 50,000
Effective Rate	0.98%
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months	$ 192
Remaining Term (in Months)	59 months
Issued 3/20/2020, Maturity 3/20/2025
Derivative [Line Items]
Notional Amount	$ 50,000
Effective Rate	0.60%
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months	$ 10
Remaining Term (in Months)	60 months

Derivatives and Hedging Activity - Gain (Loss) in Statement of Financial Performance (Details) - Interest rate swaps - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Not designated as hedging instrument \| Non-interest income
Derivatives, Fair Value [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	$ (61)	$ (20)
Cash flow hedging \| Designated as hedging instrument \| Interest expense
Derivatives, Fair Value [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	(159)	561
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives	$ (7,711)	$ (206)

Derivatives and Hedging Activity - Narrative (Details) - Interest rate swaps $ in Millions	Mar. 31, 2020 USD ($)
Derivatives, Fair Value [Line Items]
Termination value of derivatives, including accrued interest, in a net liability position	$ 167.8
Collateral already posted amount	169.0
Not designated as hedging instrument
Derivatives, Fair Value [Line Items]
Derivative, aggregate notional amount	$ 3,100.0

Disclosures About Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financial assets:
Debt securities available-for-sale	$ 275,170	$ 248,782
Level 2
Financial assets:
Debt securities available-for-sale	275,170	248,782
Fair value, measurements, recurring
Financial assets:
Total financial assets	433,129	304,023
Financial liabilities:
Total financial liabilities	167,873	57,473
Fair value, measurements, recurring \| Level 1
Financial assets:
Total financial assets	0	0
Financial liabilities:
Total financial liabilities	0	0
Fair value, measurements, recurring \| Level 2
Financial assets:
Total financial assets	433,129	304,023
Financial liabilities:
Total financial liabilities	167,873	57,473
Fair value, measurements, recurring \| Level 3
Financial assets:
Total financial assets	0	0
Financial liabilities:
Total financial liabilities	0	0
Fair value, measurements, recurring \| Interest rate swaps
Financial assets:
Interest rate swaps	157,959	55,241
Financial liabilities:
Interest rate swaps	167,873	57,473
Fair value, measurements, recurring \| Interest rate swaps \| Level 1
Financial assets:
Interest rate swaps	0	0
Financial liabilities:
Interest rate swaps	0	0
Fair value, measurements, recurring \| Interest rate swaps \| Level 2
Financial assets:
Interest rate swaps	157,959	55,241
Financial liabilities:
Interest rate swaps	167,873	57,473
Fair value, measurements, recurring \| Interest rate swaps \| Level 3
Financial assets:
Interest rate swaps	0	0
Financial liabilities:
Interest rate swaps	0	0
Fair value, measurements, recurring \| Corporate bonds
Financial assets:
Debt securities available-for-sale	205,766	175,418
Fair value, measurements, recurring \| Corporate bonds \| Level 1
Financial assets:
Debt securities available-for-sale	0	0
Fair value, measurements, recurring \| Corporate bonds \| Level 2
Financial assets:
Debt securities available-for-sale	205,766	175,418
Fair value, measurements, recurring \| Corporate bonds \| Level 3
Financial assets:
Debt securities available-for-sale	0	0
Fair value, measurements, recurring \| Trust preferred securities
Financial assets:
Debt securities available-for-sale	15,796	18,260
Fair value, measurements, recurring \| Trust preferred securities \| Level 1
Financial assets:
Debt securities available-for-sale	0	0
Fair value, measurements, recurring \| Trust preferred securities \| Level 2
Financial assets:
Debt securities available-for-sale	15,796	18,260
Fair value, measurements, recurring \| Trust preferred securities \| Level 3
Financial assets:
Debt securities available-for-sale	0	0
Fair value, measurements, recurring \| Agency collateralized mortgage obligations
Financial assets:
Debt securities available-for-sale	25,659	27,193
Fair value, measurements, recurring \| Agency collateralized mortgage obligations \| Level 1
Financial assets:
Debt securities available-for-sale	0	0
Fair value, measurements, recurring \| Agency collateralized mortgage obligations \| Level 2
Financial assets:
Debt securities available-for-sale	25,659	27,193
Fair value, measurements, recurring \| Agency collateralized mortgage obligations \| Level 3
Financial assets:
Debt securities available-for-sale	0	0
Fair value, measurements, recurring \| Agency mortgage-backed securities
Financial assets:
Debt securities available-for-sale	18,427	18,509
Fair value, measurements, recurring \| Agency mortgage-backed securities \| Level 1
Financial assets:
Debt securities available-for-sale	0	0
Fair value, measurements, recurring \| Agency mortgage-backed securities \| Level 2
Financial assets:
Debt securities available-for-sale	18,427	18,509
Fair value, measurements, recurring \| Agency mortgage-backed securities \| Level 3
Financial assets:
Debt securities available-for-sale	0	0
Fair value, measurements, recurring \| Agency debentures
Financial assets:
Debt securities available-for-sale	9,522	9,402
Fair value, measurements, recurring \| Agency debentures \| Level 1
Financial assets:
Debt securities available-for-sale	0	0
Fair value, measurements, recurring \| Agency debentures \| Level 2
Financial assets:
Debt securities available-for-sale	9,522	9,402
Fair value, measurements, recurring \| Agency debentures \| Level 3
Financial assets:
Debt securities available-for-sale	$ 0	$ 0

Disclosures About Fair Value of Financial Instruments - Fair Value Measurements, Nonrecurring (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Level 3
Financial assets:
Other real estate owned	$ 4,250	$ 4,250
Fair value, measurements, nonrecurring
Financial assets:
Loans measured for impairment, net	13	13
Other real estate owned	4,250	4,250
Total assets	4,263	4,263
Fair value, measurements, nonrecurring \| Level 1
Financial assets:
Loans measured for impairment, net	0	0
Other real estate owned	0	0
Total assets	0	0
Fair value, measurements, nonrecurring \| Level 2
Financial assets:
Loans measured for impairment, net	0	0
Other real estate owned	0	0
Total assets	0	0
Fair value, measurements, nonrecurring \| Level 3
Financial assets:
Loans measured for impairment, net	13	13
Other real estate owned	4,250	4,250
Total assets	$ 4,263	$ 4,263

Disclosures About Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Specific allowance for loan losses	$ 171	$ 171

Disclosures About Fair Value of Financial Instruments - Fair Value Inputs, Assets, Quantitative Information (Details) - Collateral - Level 3 $ in Thousands	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Loans measured for impairment, net
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 13	$ 13
Loans measured for impairment, net \| Appraisal value and discount due to salability conditions
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans measured for impairment, net	0.00	0.00
Other real estate owned
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 4,250	$ 4,250
Other real estate owned \| Appraisal value and discount due to salability conditions
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other real estate owned	0.17	0.17

Disclosures About Fair Value of Financial Instruments - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financial assets:
Debt securities available-for-sale	$ 275,170	$ 248,782
Debt securities held-to-maturity	315,336	196,755
Investment management fees receivable, net	6,656	7,560
Interest rate swaps	157,959	55,241
Financial liabilities:
Derivative liability	167,873	57,473
Level 1
Financial assets:
Cash and cash equivalents	1,010,128	403,855
Level 2
Financial assets:
Debt securities available-for-sale	275,170	248,782
Debt securities held-to-maturity	315,336	196,755
Federal Home Loan Bank stock	18,724	24,324
Accrued interest receivable	22,106	22,326
Investment management fees receivable, net	6,656	7,560
Bank owned life insurance	70,472	70,044
Financial liabilities:
Deposits	7,808,249	6,648,546
Borrowings, net	330,400	355,003
Level 2 \| Interest rate swaps
Financial assets:
Interest rate swaps	157,959	55,241
Financial liabilities:
Derivative liability	167,873	57,473
Level 3
Financial assets:
Loans and leases held-for-investment, net	6,967,244	6,548,432
Other real estate owned	4,250	4,250
Carrying amount \| Level 1
Financial assets:
Cash and cash equivalents	1,010,128	403,855
Carrying amount \| Level 2
Financial assets:
Debt securities available-for-sale	275,170	248,782
Debt securities held-to-maturity	312,842	196,044
Federal Home Loan Bank stock	18,724	24,324
Accrued interest receivable	22,106	22,326
Investment management fees receivable, net	6,656	7,560
Bank owned life insurance	70,472	70,044
Financial liabilities:
Deposits	7,782,759	6,634,613
Borrowings, net	330,000	355,000
Carrying amount \| Level 2 \| Interest rate swaps
Financial assets:
Interest rate swaps	157,959	55,241
Financial liabilities:
Derivative liability	167,873	57,473
Carrying amount \| Level 3
Financial assets:
Loans and leases held-for-investment, net	6,940,845	6,563,451
Other real estate owned	$ 4,250	$ 4,250

Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	$ 621,281	$ 479,354
Change in unrealized holding gains (losses)	(15,296)	2,268
Losses (gains) reclassified from other comprehensive income	115	(435)
Net other comprehensive income (loss)	(15,181)	1,833
Ending balance	614,380	496,557
Debt Securities
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	2,756	(2,363)
Change in unrealized holding gains (losses)	(9,422)	2,430
Losses (gains) reclassified from other comprehensive income	(12)	(13)
Net other comprehensive income (loss)	(9,434)	2,417
Ending balance	(6,678)	54
Derivatives
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(1,624)	1,032
Change in unrealized holding gains (losses)	(5,874)	(162)
Losses (gains) reclassified from other comprehensive income	127	(422)
Net other comprehensive income (loss)	(5,747)	(584)
Ending balance	(7,371)	448
Total
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	1,132	(1,331)
Net other comprehensive income (loss)	(15,181)	1,833
Ending balance	$ (14,049)	$ 502

Segments - Schedule of Segment Reporting Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) segment	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment	2
Assets	$ 8,990,061		$ 7,765,810
Income statement data:
Interest income	64,202	$ 62,902
Interest expense	29,280	32,530
Net interest income	34,922	30,372
Provision (credit) for loan and lease losses	2,993	(377)
Net interest income after provision for loan and lease losses	31,929	30,749
Non-interest income:
Net gain on the sale and call of debt securities	57	28
Other non-interest income	5,621	3,617
Total non-interest income	13,316	13,069
Non-interest expense:
Intangible amortization expense	502	502
Other non-interest expense	28,642	26,170
Total non-interest expense	29,144	26,672
Income before tax	16,101	17,146
Income tax expense (benefit)	3,206	2,582
Net income	12,895	14,564
Investment management fees
Non-interest income:
Total non-interest income	7,638	9,424
Parent and other
Segment Reporting Information [Line Items]
Assets	(8,291)		(4,466)
Income statement data:
Interest income	0	72
Interest expense	(16)	611
Net interest income	16	(539)
Provision (credit) for loan and lease losses	0	0
Net interest income after provision for loan and lease losses	16	(539)
Non-interest income:
Net gain on the sale and call of debt securities	0	0
Other non-interest income	0	719
Total non-interest income	(127)	610
Non-interest expense:
Intangible amortization expense	0	0
Other non-interest expense	982	91
Total non-interest expense	982	91
Income before tax	(1,093)	(20)
Income tax expense (benefit)	(170)	(5)
Net income	(923)	(15)
Parent and other \| Investment management fees
Non-interest income:
Total non-interest income	(127)	(109)
Bank \| Operating segments
Segment Reporting Information [Line Items]
Assets	8,915,114		7,686,981
Income statement data:
Interest income	64,202	62,830
Interest expense	29,296	31,919
Net interest income	34,906	30,911
Provision (credit) for loan and lease losses	2,993	(377)
Net interest income after provision for loan and lease losses	31,913	31,288
Non-interest income:
Net gain on the sale and call of debt securities	57	28
Other non-interest income	5,652	2,877
Total non-interest income	5,709	2,905
Non-interest expense:
Intangible amortization expense	0	0
Other non-interest expense	21,034	19,021
Total non-interest expense	21,034	19,021
Income before tax	16,588	15,172
Income tax expense (benefit)	3,348	2,024
Net income	13,240	13,148
Bank \| Operating segments \| Investment management fees
Non-interest income:
Total non-interest income	0	0
Investment management \| Operating segments
Segment Reporting Information [Line Items]
Assets	83,238		$ 83,295
Income statement data:
Interest income	0	0
Interest expense	0	0
Net interest income	0	0
Provision (credit) for loan and lease losses	0	0
Net interest income after provision for loan and lease losses	0	0
Non-interest income:
Net gain on the sale and call of debt securities	0	0
Other non-interest income	(31)	21
Total non-interest income	7,734	9,554
Non-interest expense:
Intangible amortization expense	502	502
Other non-interest expense	6,626	7,058
Total non-interest expense	7,128	7,560
Income before tax	606	1,994
Income tax expense (benefit)	28	563
Net income	578	1,431
Investment management \| Operating segments \| Investment management fees
Non-interest income:
Total non-interest income	$ 7,765	$ 9,533

Subsequent Events (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Thousands	May 06, 2020	Apr. 14, 2020
Series A preferred stock
Subsequent Event [Line Items]
Dividend payable		$ 679
Series A depositary share
Subsequent Event [Line Items]
Dividends payable (usd per share)		$ 0.42
Series B preferred stock
Subsequent Event [Line Items]
Dividend payable		$ 1,300
Series B depositary share
Subsequent Event [Line Items]
Dividends payable (usd per share)		$ 0.40
Subordinated notes payable
Subsequent Event [Line Items]
Notes payable	$ 60,000
Fxed-to-floating rate	5.75%
Subordinated notes payable \| LIBOR
Subsequent Event [Line Items]
Debt Instrument, Basis Spread on Variable Rate	5.36%