TRISTATE CAPITAL HOLDINGS, INC., 10-Q filed on 5/9/2022
Quarterly Report
v3.22.1
COVER PAGE - shares
 3 Months Ended
Mar. 31, 2022
Apr. 30, 2022
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2022  
Document Transition Report false  
Entity File Number 001-35913  
Entity Registrant Name TRISTATE CAPITAL HOLDINGS, INC.  
Entity Incorporation, State or Country Code PA  
Entity Tax Identification Number 20-4929029  
Entity Address, Address Line One One Oxford Centre  
Entity Address, Address Line Two 301 Grant Street, Suite 2700  
Entity Address, City or Town Pittsburgh,  
Entity Address, State or Province PA  
City Area Code (412)  
Local Phone Number 304-0304  
Entity Address, Postal Zip Code 15219  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   33,636,862
Entity Central Index Key 0001380846  
Amendment Flag false  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q1  
Document Fiscal Year End Date --12-31  
Common Stock    
Entity Information [Line Items]    
Title of 12(b) Security Common Stock, no par value  
Trading Symbol TSC  
Security Exchange Name NASDAQ  
Series A depositary share    
Entity Information [Line Items]    
Title of 12(b) Security Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock  
Trading Symbol TSCAP  
Security Exchange Name NASDAQ  
Series B depositary share    
Entity Information [Line Items]    
Title of 12(b) Security Depositary Shares, Each Representing a 1/40th Interest in a Share of 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock  
Trading Symbol TSCBP  
Security Exchange Name NASDAQ  
v3.22.1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
ASSETS    
Cash $ 345 $ 340
Interest-earning deposits with other institutions 459,743 449,302
Federal funds sold 21,786 2,374
Cash and cash equivalents 481,874 452,016
Debt securities available-for-sale, at fair value 714,162 586,325
Debt securities held-to-maturity, at amortized cost, net 807,606 802,576
Equity securities, at fair value 4,867 4,975
Federal Home Loan Bank stock 11,802 11,802
Total investment securities 1,538,437 1,405,678
Loans and leases held-for-investment 11,246,919 10,763,324
Allowance for credit losses on loans and leases (25,024) (28,563)
Loans and leases held-for-investment, net 11,221,895 10,734,761
Accrued interest receivable 25,891 25,060
Investment management fees receivable, net 8,390 8,641
Goodwill 41,660 41,660
Intangible assets, net of accumulated amortization of $14,769 and $14,292, respectively 19,863 20,340
Office properties and equipment, net of accumulated depreciation of $20,062 and $19,217, respectively 22,303 19,833
Operating lease right-of-use asset 41,527 35,116
Bank owned life insurance 99,535 98,928
Prepaid expenses and other assets 176,292 162,819
Total assets 13,677,667 13,004,852
Liabilities:    
Deposits 12,165,476 11,504,389
Borrowings, net 470,262 470,163
Accrued interest payable on deposits and borrowings 4,138 1,841
Deferred tax liability, net 716 6,326
Operating lease liability 43,744 36,937
Other accrued expenses and other liabilities 155,193 148,474
Total liabilities 12,839,529 12,168,130
Shareholders’ Equity:    
Common stock 335,674 334,566
Additional paid-in capital 44,997 42,655
Retained earnings 338,274 319,766
Accumulated other comprehensive loss, net (21,082) (3,424)
Treasury stock (2,525,165 and 2,402,033 shares, respectively) (42,369) (38,385)
Total shareholders’ equity 838,138 836,722
Total liabilities and shareholders’ equity 13,677,667 13,004,852
Series A preferred stock    
Shareholders’ Equity:    
Preferred stock, no par value 38,468 38,468
Series B preferred stock    
Shareholders’ Equity:    
Preferred stock, no par value 77,611 77,611
Series C preferred stock    
Shareholders’ Equity:    
Preferred stock, no par value 66,565 65,465
Nonvoting Common Stock    
Shareholders’ Equity:    
Common stock $ 0 $ 0
v3.22.1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Accumulated amortization - intangibles $ 14,769 $ 14,292
Accumulated depreciation - office prop and eqip $ 20,062 $ 19,217
Shares Authorized, Preferred Stock (in shares) 150,000 150,000
Shares Authorized, Common Stock (in shares) 51,653,347 51,653,347
Shares Issued, Common Stock (in shares) 36,161,627 35,665,531
Shares Outstanding, Common Stock (in shares) 33,636,462 33,263,498
Treasury Stock (in shares) 2,525,165 2,402,033
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 Outstanding, Preferred Stock (in shares) 80,500 80,500
Series C preferred stock    
Shares Issued, Preferred Stock (in shares) 694 683
Shares Outstanding, Preferred Stock (in shares) 694 683
Nonvoting Common Stock    
Shares Authorized, Common Stock (in shares) 6,653,347 6,653,347
Shares Issued, Common Stock (in shares) 0 0
v3.22.1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Interest income:    
Loans and leases $ 61,228 $ 49,186
Investments 6,157 2,646
Interest-earning deposits 192 160
Total interest income 67,577 51,992
Interest expense:    
Deposits 10,746 10,754
Borrowings 3,230 2,582
Total interest expense 13,976 13,336
Net interest income 53,601 38,656
Provision for credit losses 563 224
Net interest income after provision for credit losses 53,038 38,432
Non-interest income:    
Net gain (loss) on the sale and call of debt securities 0 (1)
Bank owned life insurance income 606 429
Other income (loss) (270) 870
Total non-interest income 15,097 13,651
Non-interest expense:    
Compensation and employee benefits 24,994 19,921
Premises and equipment expense 1,989 1,406
Professional fees 2,280 1,324
FDIC insurance expense 1,584 1,125
General insurance expense 371 298
State capital shares tax expense 798 650
Travel and entertainment expense 696 441
Technology and data services 4,123 3,100
Intangible amortization expense 478 478
Marketing and advertising 896 684
Other operating expenses 2,976 1,851
Total non-interest expense 41,185 31,278
Income (loss) before tax 26,950 20,805
Income tax expense 5,309 4,605
Net income 21,641 16,200
Preferred stock dividends 3,133 3,059
Net income available to common shareholders $ 18,508 $ 13,141
Earnings per common share:    
Basic (in dollars per share) $ 0.49 $ 0.36
Diluted (in dollars per share) $ 0.48 $ 0.35
Investment management fees    
Non-interest income:    
Total non-interest income $ 9,085 $ 9,000
Service charges on deposits    
Non-interest income:    
Total non-interest income 415 316
Swap fees    
Non-interest income:    
Total non-interest income 4,660 2,711
Commitment and other loan fees    
Non-interest income:    
Total non-interest income $ 601 $ 326
v3.22.1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Statement of Comprehensive Income [Abstract]    
Net income $ 21,641 $ 16,200
Other comprehensive income (loss):    
Unrealized holding losses on debt securities, net of tax benefit of $(7,251) and $(303), respectively (22,822) (954)
Reclassification adjustment for gains included in net income on debt securities, net of tax expense of $0 and $0, respectively 0 (1)
Unrealized holding gains on derivatives, net of tax expense of $1,453 and $565, respectively 4,573 1,683
Reclassification adjustment for losses included in net income on derivatives, net of tax benefit of $187 and $204, respectively 591 642
Other comprehensive income (loss), net of tax (17,658) 1,370
Total comprehensive income $ 3,983 $ 17,570
v3.22.1
Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Statement of Comprehensive Income [Abstract]    
Tax expense (benefit) on unrealized holding gains (losses) on debt securities $ (7,251) $ (303)
Tax benefit (expense) on debt securities losses (gains) reclassified from other comprehensive income 0 0
Tax expense (benefit) on unrealized holding gains (losses) on derivatives 1,453 565
Tax benefit (expense) on derivative losses (gains) reclassified from other comprehensive income $ 187 $ 204
v3.22.1
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
Balance, beginning of period at Dec. 31, 2020 $ 757,145 $ 177,143 $ 331,098 $ 33,824 $ 254,054 $ (2,697) $ (36,277)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 16,200       16,200    
Other comprehensive income (loss) 1,370         1,370  
Preferred stock dividends (1,959) 1,100     (3,059)    
Exercise of stock options 396   972 (576)      
Purchase of treasury stock (1,471)           (1,471)
Stock-based compensation 2,605     2,605      
Balance, end of period at Mar. 31, 2021 774,286 178,243 332,070 35,853 267,195 (1,327) (37,748)
Balance, beginning of period at Dec. 31, 2021 836,722 181,544 334,566 42,655 319,766 (3,424) (38,385)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income 21,641       21,641    
Other comprehensive income (loss) (17,658)         (17,658)  
Preferred stock dividends (2,033) 1,100     (3,133)    
Exercise of stock options 394   1,108 (714)      
Purchase of treasury stock (3,984)           (3,984)
Stock-based compensation 3,056     3,056      
Balance, end of period at Mar. 31, 2022 $ 838,138 $ 182,644 $ 335,674 $ 44,997 $ 338,274 $ (21,082) $ (42,369)
v3.22.1
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Cash flows from operating activities:    
Net income $ 21,641 $ 16,200
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and intangible amortization expense 1,322 1,100
Amortization of deferred financing costs 99 54
Impairment on historic tax credit investments 450 450
Provision for credit losses 563 224
Net loss (gain) on the sale of loans and leases 225 (627)
Stock-based compensation expense 3,056 2,605
Net gain on the sale and call of debt securities 0 1
Income from equity securities 124 0
Income from debt securities trading 0 (105)
Purchase of debt securities trading 0 (9,440)
Proceeds from the sale of debt securities trading 0 9,545
Net amortization of premiums and discounts on debt securities 2,308 3,037
Decrease (increase) in investment management fees receivable, net 251 (281)
Increase in accrued interest receivable (831) (1,424)
Increase in accrued interest payable 2,297 288
Bank owned life insurance income (607) (428)
Increase in income taxes payable 4,852 3,327
Decrease in prepaid income taxes 874 1,186
Deferred tax provision 0 50
Decrease in accounts payable and other accrued expenses (7,112) (11,997)
Other, net (1,434) (4,175)
Net cash provided by operating activities 28,078 9,590
Cash flows from investing activities:    
Purchase of debt securities available-for-sale (176,178) (82,802)
Purchase of debt securities held-to-maturity (37,537) (389,107)
Purchase of equity securities (16) 0
Principal repayments and maturities of debt securities available-for-sale 17,870 28,530
Principal repayments and maturities of debt securities held-to-maturity 35,457 48,543
Investment in low-income housing and historic tax credits (915) (1,104)
Investment in small business investment companies (1,036) (180)
Net redemption of Federal Home Loan Bank stock 0 2,000
Net increase in loans and leases, net (491,948) (310,647)
Proceeds from the sale of loans and leases 3,934 5,311
Additions to office properties and equipment (3,315) (1,988)
Net cash used in investing activities (653,684) (701,444)
Cash flows from financing activities:    
Net increase in deposit accounts 661,087 760,930
Net decrease in Federal Home Loan Bank advances 0 (50,000)
Proceeds from line of credit advances 0 5,200
Repayment of line of credit advances 0 (10,200)
Net proceeds from exercise of stock options 394 396
Purchase of treasury stock, net of reissuance (3,984) (1,471)
Dividends paid on preferred stock (2,033) (1,959)
Net cash provided by financing activities 655,464 702,896
Net change in cash and cash equivalents during the period 29,858 11,042
Cash and cash equivalents at beginning of the period 452,016 435,442
Cash and cash equivalents at end of the period 481,874 446,484
Cash paid (received) during the period for:    
Interest expense 11,580 12,994
Income taxes (417) 11
Other non-cash activity:    
Operating lease right-of-use asset 6,807 0
Unsettled purchase of debt securities held-to-maturity 4,770 0
Transfer of debt securities available-for-sale to held-to-maturity 0 480,769
Series C dividend paid in kind $ 1,100 $ 1,100
v3.22.1
BASIS OF INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 3 Months Ended
Mar. 31, 2022
Accounting Policies [Abstract]  
BASIS OF INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 middle-market businesses and financial services providers and focused 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 and supervision by the Federal Deposit Insurance Corporation (“FDIC”), the Pennsylvania Department of Banking and Securities and the Board of Governors of the Federal Reserve System (“Federal Reserve”). Since the Bank’s consolidated total assets exceeded $10 billion for four consecutive quarters, as of December 31, 2021, the Company and the Bank are subject to regulatory examination and supervision of the Consumer Financial Protection Bureau (“CFPB”) with respect to certain consumer protection laws. Chartwell is a registered investment adviser regulated by the U.S. 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.

On October 20, 2021, the Company announced that it entered into a definitive agreement under which Raymond James Financial, Inc. (“Raymond James”) will acquire the outstanding shares of stock of the Company for consideration that is a combination of cash and Raymond James stock at a fixed exchange rate, valued in aggregate at approximately $1.10 billion based on the trading value of Raymond James’ stock on the announcement date. The Company’s shareholders approved the transaction on February 28, 2022. The acquisition is subject to customary closing conditions, including receipt of regulatory approvals, and is currently expected to close by the end of the second quarter of 2022.

USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”) 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 credit losses on loans and leases, valuation of goodwill and other intangible assets and their evaluation for impairment, fair value measurements 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, 2021, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 1, 2022.

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. Under agreements with certain of its derivative counterparties, the Company is required to maintain minimum cash collateral posting thresholds with such counterparties. The cash subject to these agreements is considered restricted for these purposes.

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, net of allowance for credit losses; (2) trading, which are debt securities bought and held principally for the purpose of selling them in the near term and are 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 are 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. Management evaluates expected credit losses on held-to-maturity debt securities on a collective or pool basis, by investment category and credit rating. The Company measures credit losses by comparing the present value of cash flows expected to be collected to the amortized cost of the security considering historical credit loss information, adjusted for current conditions and reasonable and supportable economic forecasts. The Company’s investment securities can be classified into the following pools based on similar risk characteristics: (1) U.S. government agencies, (2) state and local municipalities, (3) domestic corporations, including trust preferred securities, and (4) non-agency securitizations. The Company’s U.S. government agency securities are issued by U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. For the remaining pools of securities, the credit rating of the issuers, the investment’s cash flow characteristics and the underlying instruments securitizing certain bonds are the most relevant risk characteristics of the investment portfolio. The Company’s investment policy only allows for purchases of investments with investment grade credit ratings and the Company continuously monitors for changes in credit ratings. Probability of default and loss given default rates are based on historical averages for each investment pool, adjusted to reflect the impact of a single, forward-looking forecast of certain macroeconomic variables, such as unemployment rates and interest rate spreads, which management considers to be both reasonable and supportable. The forecast of these macroeconomic variables is applied over a period of three years and reverts to historical averages over a two-year reversion period.

Management evaluates available-for-sale debt securities in an unrealized loss position quarterly for expected credit losses. 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 an available-for-sale 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, the security’s amortized cost is written down to fair value through current period earnings. For available-for-sale 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, a provision for credit losses is recorded through current period earnings for the amount of the valuation decline below amortized cost that is attributable to credit losses. Management considers the extent to which fair value is less than amortized cost, credit ratings and other factors related to
the security in assessing whether credit loss exists. The Company measures credit loss by comparing the present value of cash flows expected to be collected to the amortized cost of the security. An allowance for credit losses is measured by the difference that the present value of cash flows expected to be collected is less than the amortized cost, limited by the amount that the fair value is less than the amortized cost. 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. Changes in the allowance for credit losses are recorded as provision for credit losses. Losses are charged against the allowance when management believes the security is uncollectible or management intends to sell or is required to sell the security.

The recognition of interest income on a debt security is discontinued when any principal or interest payment becomes 90 days past due, at which time the debt security is placed on non-accrual status. All accrued and unpaid interest on such debt security is then reversed. Accrued interest receivable is excluded from the estimate of expected credit losses.

FEDERAL HOME LOAN BANK STOCK
The Bank 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, 2022 and December 31, 2021. 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 amortized cost. Amortized cost is the unpaid principal balance, 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. The Company evaluates any loan reasonably expected to become a TDR, regardless of whether the loan is on accrual or non-accrual status. 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 (e.g., 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 creditworthiness 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 CREDIT LOSSES ON LOANS AND LEASES
The allowance for credit losses is a valuation account that is deducted from the amortized cost of loans and leases to present management’s best estimate of the net amount expected to be collected. Adjustments to the allowance for credit losses are established through provisions for credit losses that are recorded in the consolidated statements of income. Loans and leases are charged off against the allowance for credit 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 allowance for credit losses. Accrued interest receivable is excluded from the estimate of expected credit losses.

The allowance for credit losses represents estimates of expected credit losses for homogeneous loan pools that share similar risk characteristics such as commercial and industrial (“C&I”) loans and leases, commercial real estate (“CRE”) loans, and private banking loans, which include consumer lines of credit and residential mortgages. The Company periodically reassesses each loan pool to ensure that the loans within the pool continue to share similar risk characteristics. Non-accrual loans and loans designated as TDRs are assessed individually using a discounted cash flow method or, where a loan is collateral dependent, based upon the fair value of the collateral less estimated selling costs.

The collateral on our private banking loans that are secured by cash, marketable securities and/or cash value life insurance is monitored daily and requires borrowers to continually replenish such collateral as a result of changes in its fair value. Therefore, it is expected that the fair value of the collateral securing each loan will exceed the loan’s amortized cost and no allowance for credit losses would be required under Accounting Standard Codification (“ASC”) 326-20-35-6, “Financial Assets Secured by Collateral Maintenance Provisions.”

In estimating the general allowance for credit losses for loans evaluated on a collective or pool basis, management considers past events, current conditions, and reasonable and supportable economic forecasts, 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 and forecasted local and regional economic conditions in the markets that we serve.

Management bases the computation of the general allowance for credit losses 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. Management has developed a methodology that is applied to each of the three primary loan portfolios: C&I loans and leases, CRE loans and private banking loans (other than those secured by cash, marketable securities and/or cash value life insurance).

For each portfolio, management estimates expected credit losses over the life of each loan utilizing lifetime or cumulative loss rate methodology, which identifies macroeconomic factors and asset-specific characteristics that are correlated with credit loss experience, including loan age, loan type, leverage, risk rating, interest rate spread and industry. The lifetime loss rate is applied to the amortized cost of the loan. This methodology builds on default and recovery probabilities by utilizing pool-specific historical loss rates to calculate expected credit losses. These pool-specific historical loss rates may be adjusted for a forecast of certain macroeconomic variables, as further discussed below, and other factors such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated as of the measurement date. Each time the Company measures expected credit losses, the Company assesses the relevancy of historical loss information and considers any necessary adjustments to address any differences in asset-specific characteristics.

The allowance for credit losses represents management’s current estimate of expected credit losses in the loan and lease portfolio. Expected credit losses are estimated over the contractual term of the loans, which includes extension or renewal options that are not unconditionally cancellable by the Company and are adjusted for expected prepayments when appropriate. Management’s judgment takes into consideration past events, current conditions and reasonable and supportable economic forecasts including 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 in making such determinations, and that the present allowance for credit losses represents management’s best estimate of current expected credit losses, 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.
The lifetime loss rates are estimated by analyzing a combination of internal and external data related to historical performance of each loan pool over a complete economic cycle. Loss rates are based on historical averages for each loan pool, adjusted to reflect the impact of a single, forward-looking forecast of certain macroeconomic variables such as gross domestic product, unemployment rates, corporate bond credit spreads and commercial property values, which management considers to be both reasonable and supportable. The single, forward-looking forecast of these macroeconomic variables is applied over the remaining life of the loan pools. The development of the reasonable and supportable forecast incorporates an assumption that each macroeconomic variable will revert to a long-term expectation starting in years two to four of the forecast and largely completing within the first five years of the forecast.

The secondary factor is intended to capture additional risks related to events and circumstances that management believes have an impact on the performance of the loan portfolio that are not considered as part of the primary factor. 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 an allowance level based on management’s judgment as to the expected impact of each risk factor on each loan portfolio and is monitored on a quarterly basis. As the trend in any risk factor changes, management evaluates the need for a corresponding change to occur in the allowance associated with each respective risk factor to provide the most appropriate estimate of allowance for credit losses on loans and leases.

The Company also maintains an allowance for credit losses on off-balance sheet credit exposures for unfunded loan commitments. This allowance is reflected as a component of other liabilities which represents management’s current estimate of expected losses in the unfunded loan commitments. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life based on management’s consideration of past events, current conditions and reasonable and supportable economic forecasts. 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 credit losses on outstanding loans. Unconditionally cancellable loans are excluded from the calculation of allowance for credit losses on off-balance sheet credit exposures.

INVESTMENT MANAGEMENT FEES
Revenue from contracts with customers is recognized when promised services are delivered to our customers in an amount we expect to receive in exchange for those services (i.e., the transaction price). Payment for the majority of our services is considered to be variable consideration, as the amount of revenue we expect to receive is subject to factors outside of our control, including market conditions. Variable consideration is only included in revenue when amounts are not subject to significant reversal, which is generally when uncertainty around the amount of revenue to be received is resolved. We record deferred revenue from contracts with customers when payment is received prior to the performance of our obligation to the customer.

We earn investment management fees for performing portfolio management for retail and institutional clients. Such fees are generally calculated as a percentage of the value of client assets or, for certain pooled assets such as mutual funds, on the net asset value of assets managed. The value of these assets is impacted by market fluctuations and net inflows or outflows of assets. Fees are generally collected quarterly and are based on balances either at the beginning of the quarter or the end of the quarter, or on average balances throughout the quarter. Asset management fees are recognized on a monthly basis (i.e., over time) as the services are performed.

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. The Company has not experienced any losses on receivables for investment management fees for the three months ended March 31, 2022 and 2021. The Company had no allowance for credit losses on investment management fees as of March 31, 2022 and December 31, 2021.

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.

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 assets, 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 of such assets 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 of the assets 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 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, senior notes payable 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. The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities, according to dividends and participation rights in undistributed earnings. Under this method, net earnings is reduced by the amount of dividends declared in the current period for common shareholders and participating security holders. The remaining earnings or “undistributed earnings” are allocated between common stock and participating securities to the extent that each security may share in earnings as if all the earnings for the period had been distributed.

The two-class method requires the Company’s Series C perpetual non-cumulative convertible non-voting preferred stock (the “Series C Preferred Stock”) and outstanding warrants to be treated as participating classes of securities in the computation of EPS. In addition, net income is reduced by dividends declared on all series of preferred stock to derive net income available to common shareholders. Basic EPS is computed by dividing net income allocable to common shareholders by the weighted average number of the Company’s common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution upon the exercise of stock options and warrants, 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 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 is required to have minimum collateral posting thresholds with certain of its derivative counterparties, and this collateral is considered restricted cash.

The Company executes interest rate derivatives with its commercial banking customers to facilitate their respective risk management strategies. The Company generates swap fee income through these transactions. These derivatives are simultaneously and economically hedged by offsetting derivatives that the Company executes with a third party, such that the Company generally eliminates its interest rate exposure resulting from such transactions and these derivatives 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 mature 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.

RECENT ACCOUNTING DEVELOPMENTS

In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2022-02—Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 eliminates the separate recognition and measurement guidance for TDRs such that creditors will apply the same guidance to all loan modifications when determining whether a modification results in a new receivable or a continuation of an existing receivable. The ASU also enhances existing loan modification related financial statement disclosures while also requiring new disclosure of current-period gross charge-offs by year of origination for financing receivables and net investments in leases. For entities that have adopted the current expected credit loss (“CECL”) methodology, the ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2022-02 on its consolidated financial statements.

In March 2022, the FASB issued ASU 2022-01—Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method. ASU 2022-01 establishes the portfolio-layer method, which expands an entity’s ability to achieve fair value hedge accounting for hedges of financial assets in a closed portfolio. The ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2022-01 on its consolidated financial statements.

On October 28, 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU is effective for annual and interim periods in fiscal years beginning after December 15, 2022 and provides an exception to fair value measurement for revenue contracts acquired in business combinations. Early adoption is permitted for both interim and annual financial statements that have not yet been issued (or made available for issuance). The Company is currently evaluating the impact of adopting ASU 2021-05 on its consolidated financial statements.
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INVESTMENT SECURITIES
 3 Months Ended
Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES INVESTMENT SECURITIES
Debt securities available-for-sale and held-to-maturity were comprised of the following as of March 31, 2022:
March 31, 2022
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation
Allowance for Credit Losses (1)
Estimated
Fair Value
Debt securities available-for-sale:
U.S. treasury notes$99,416 $— $2,757 $— $96,659 
Corporate bonds153,425 245 2,619 — 151,051 
Non-agency residential mortgage-backed securities307,202 3,599 21,953 — 288,848 
Trust preferred securities13,635 118 150 — 13,603 
Agency collateralized mortgage obligations15,585 12 56 — 15,541 
Agency mortgage-backed securities147,458 21 10,445 — 137,034 
Agency debentures6,733 104 — — 6,837 
Municipal bonds5,181 — 592 — 4,589 
Total debt securities available-for-sale$748,635 $4,099 $38,572 $— $714,162 
(1)Available-for-sale debt securities are recorded on the consolidated statements of financial condition at estimated fair value, which includes allowance for credit losses, if applicable.
March 31, 2022
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Allowance for Credit Losses (1)
Debt securities held-to-maturity:
U.S. treasury notes$39,120 $— $3,156 $35,964 $— 
Corporate bonds25,165 226 110 25,281 11 
Agency debentures66,540 131 2,749 63,922 — 
Municipal bonds410 — — 410 — 
Non-agency residential mortgage-backed securities173,010 — 13,683 159,327 34 
Agency mortgage-backed securities503,406 176 37,869 465,713 — 
Total debt securities held-to-maturity$807,651 $533 $57,567 $750,617 $45 
(1)Held-to-maturity debt securities are recorded on the consolidated statements of financial condition at amortized cost, net of allowance for credit losses.

During the first quarter of 2021, the Company transferred $480.8 million in fair value of previously designated available-for-sale agency mortgage-backed securities to held-to-maturity.

Debt securities available-for-sale and held-to-maturity were comprised of the following as of December 31, 2021:
December 31, 2021
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation
Allowance for Credit Losses (1)
Estimated
Fair Value
Debt securities available-for-sale:
Corporate bonds$145,568 $897 $273 $— $146,192 
Trust preferred securities13,610 200 183 — 13,627 
Non-agency residential mortgage-backed securities281,282 — 4,164 — 277,118 
Agency collateralized mortgage obligations16,458 42 2 — 16,498 
Agency mortgage-backed securities122,044 32 1,599 — 120,477 
Agency debentures6,732 496 — — 7,228 
Municipal bonds5,189 — 4 — 5,185 
Total debt securities available-for-sale$590,883 $1,667 $6,225 $— $586,325 
(1)Available-for-sale debt securities are recorded on the consolidated statements of financial condition at estimated fair value, which includes allowance for credit losses, if applicable.
December 31, 2021
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Allowance for Credit Losses (1)
Debt securities held-to-maturity:
U.S. treasury notes$39,097 $12 $443 $38,666 — $— 
Corporate bonds25,167 827 16 25,978 71 
Agency debentures36,794 534 395 36,933 — 
Municipal bonds890 1 — 891 — 
Non-agency residential mortgage-backed securities184,731 1 3,088 181,644 65 
Agency mortgage-backed securities516,033 570 8,753 507,850 — 
Total debt securities held-to-maturity$802,712 $1,945 $12,695 $791,962 $136 
(1)Held-to-maturity debt securities are recorded on the consolidated statements of financial condition at amortized cost, net of allowance for credit losses.

Interest income on investment securities was as follows:
Three Months Ended March 31,
(Dollars in thousands)20222021
Taxable interest income$5,997 $2,429 
Non-taxable interest income22 35 
Dividend income138 182 
Total interest income on investment securities$6,157 $2,646 

As of March 31, 2022, the contractual maturities of the debt securities were:
March 31, 2022
Available-for-SaleHeld-to-Maturity
(Dollars in thousands)Amortized
Cost		Estimated
Fair Value		Amortized
Cost		Estimated
Fair Value
Due in less than one year$27,500 $27,498 $410 $410 
Due from one to five years172,225 168,923 35,165 34,882 
Due from five to ten years57,883 56,118 103,627 97,833 
Due after ten years491,027 461,623 668,449 617,492 
Total debt securities$748,635 $714,162 $807,651 $750,617 

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-SaleHeld-to-Maturity
Three Months Ended March 31,Three Months Ended March 31,
(Dollars in thousands)2022202120222021
Proceeds from sales$— $— $— $— 
Proceeds from calls— 17,311 — 3,555 
Total proceeds$— $17,311 $— $3,555 
Gross realized gains$— $— $— $— 
Gross realized losses— 1 — — 
Net realized gains$— $(1)$— $— 
There were $27.1 million of debt securities held-to-maturity that were pledged as collateral for certain deposit relationships as of March 31, 2022.

Changes in the allowance for credit losses on held-to-maturity securities were as follows for the three months ended March 31, 2022 and 2021:

Three Months Ended March 31, 2022
(Dollars in thousands)Corporate
Bonds		Non-agency SecuritizationsMunicipal
Bonds		Agency Debentures and SecuritizationsU.S. Treasury NotesTotal
Balance, beginning of period$71 $65 $— $— $— $136 
Provision (credit) for credit losses(60)(31)— — — (91)
Charge-offs— — — — — — 
Recoveries— — — — — — 
Balance, end of period$11 $34 $— $— $— $45 


Three Months Ended March 31, 2021
(Dollars in thousands)Corporate
Bonds		Non-agency SecuritizationsMunicipal
Bonds		Agency Debentures and SecuritizationsU.S. Treasury NotesTotal
Balance, beginning of period$79 $70 $— $— $— $149 
Provision (credit) for credit losses(24)35 — — — 11 
Charge-offs— — — — — — 
Recoveries— — — — — — 
Balance, end of period$55 $105 $— $— $— $160 
The following tables show the fair value and gross unrealized losses on debt securities available-for-sale, by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of March 31, 2022 and December 31, 2021:

March 31, 2022
Less than 12 Months12 Months or MoreTotal
(Dollars in thousands)Fair valueUnrealized lossesFair valueUnrealized lossesFair valueUnrealized losses
Debt securities available-for-sale:
U.S. Treasury Notes$96,659 $2,757 $— $— $96,659 $2,757 
Corporate bonds87,923 1,411 18,350 1,208 106,273 2,619 
Trust preferred securities2,064 60 2,289 90 4,353 150 
Non-agency residential mortgage-backed securities266,999 21,953 — — 266,999 21,953 
Agency collateralized mortgage obligations12,984 56 — — 12,984 56 
Agency mortgage-backed securities133,551 10,444 88 1 133,639 10,445 
Municipal bonds4,589 592 — — 4,589 592 
Temporarily impaired debt securities available-for-sale (1)
$604,769 $37,273 $20,727 $1,299 $625,496 $38,572 
(1)The number of investment positions with unrealized losses totaled 72 for available-for-sale securities.
December 31, 2021
Less than 12 Months12 Months or MoreTotal
(Dollars in thousands)Fair valueUnrealized lossesFair valueUnrealized lossesFair valueUnrealized losses
Debt securities available-for-sale:
Corporate bonds$20,191 $118 $11,808 $155 $31,999 $273 
Trust preferred securities2,046 76 2,270 107 4,316 183 
Non-agency mortgage-backed securities277,118 4,164 — — 277,118 4,164 
Agency collateralized mortgage obligations1,600 2 — — 1,600 2 
Agency mortgage-backed securities119,320 1,599 89 — 119,409 1,599 
Municipal bonds5,185 4 — — 5,185 4 
Temporarily impaired debt securities available-for-sale (1)
$425,460 $5,963 $14,167 $262 $439,627 $6,225 
(1)The number of investment positions with unrealized losses totaled 39 for available-for-sale securities.

The changes in the fair values of our agency collateralized mortgage obligations and agency mortgage-backed securities are primarily the result of interest rate fluctuations. These agency securities are either explicitly or implicitly guaranteed by the U.S. government, highly rated, and have a long history of no credit losses.

To assess for credit losses on debt securities available-for-sale in unrealized loss position, 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 losses 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, no allowance for credit losses has been recognized on debt securities available-for-sale in an unrealized loss position.

The Company monitors the credit quality of debt securities held-to-maturity including credit ratings quarterly. The following tables present the amortized costs basis of debt securities held-to-maturity by Moody’s bond credit rating.
March 31, 2022
(Dollars in thousands)AaaAaABaaBaTotal
Debt securities held-to-maturity:
Corporate bonds$— $— $— $25,165 $— $25,165 
Agency debentures66,540 — — — — 66,540 
Municipal bonds— — 410 — — 410 
Non-agency residential mortgage-backed securities173,010 — — — — 173,010 
Agency mortgage-backed securities503,406 — — — — 503,406 
U.S. treasury notes39,120 — — — — 39,120 
Total debt securities held-to-maturity$782,076 $— $410 $25,165 $— $807,651 

Accrued interest receivable of $1.5 million and $1.6 million on debt securities held-to-maturity as of March 31, 2022 and December 31, 2021, respectively, was excluded from the amortized cost used in the calculation of allowance for credit losses. The Company had no debt securities held-to-maturity that were past due as of March 31, 2022.

There were no outstanding debt securities classified as trading as of March 31, 2022 and December 31, 2021.

Equity securities consisted of mutual funds investing in short-duration, investment grade corporate bonds. The investments in these securities were $4.9 million and $5.0 million as of March 31, 2022 and December 31, 2021, respectively.

There was $11.8 million and $11.8 million in FHLB stock outstanding as of March 31, 2022 and December 31, 2021, respectively.
v3.22.1
LOANS AND LEASES
 3 Months Ended
Mar. 31, 2022
Receivables [Abstract]  
LOANS AND LEASES LOANS AND LEASESThe 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 the Company’s C&I loan and lease portfolio and CRE loan portfolio, which serve middle-market businesses and real estate developers in our primary markets.
Loans and leases held-for-investment were comprised of the following:
March 31, 2022
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Loans and leases held-for-investment, before deferred fees and costs$7,253,933 $1,560,668 $2,420,958 $11,235,559 
Net deferred loan costs (fees)14,229 3,641 (6,510)11,360 
Loans and leases held-for-investment, net of deferred fees and costs7,268,162 1,564,309 2,414,448 11,246,919 
Allowance for credit losses on loans and leases(2,060)(5,116)(17,848)(25,024)
Loans and leases held-for-investment, net$7,266,102 $1,559,193 $2,396,600 $11,221,895 
December 31, 2021
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Loans and leases held-for-investment, before deferred fees and costs$6,870,961 $1,509,418 $2,369,335 $10,749,714 
Net deferred loan costs (fees)15,537 4,005 (5,932)13,610 
Loans and leases held-for-investment, net of deferred fees and costs6,886,498 1,513,423 2,363,403 10,763,324 
Allowance for credit losses on loans and leases(1,891)(8,453)(18,219)(28,563)
Loans and leases held-for-investment, net$6,884,607 $1,504,970 $2,345,184 $10,734,761 

The Company’s customers have unused loan commitments based on the availability of eligible collateral or other terms and conditions under their loan agreements. Included in unused loan commitments are commitments to fund loans secured by residential properties, commercial real estate, construction loans, business lines of credit and other unused commitments of loans in various stages of funding. Not all commitments will fund or fully fund as customers often only draw on a portion of their available credit. The amount of unfunded commitments, including standby letters of credit, as of March 31, 2022 and December 31, 2021, was $11.54 billion and $10.74 billion, respectively. The interest rate for each commitment is based on the prevailing market conditions at the time of funding. The total unfunded commitments above included loans in the process of origination totaling approximately $120.4 million and $162.0 million as of March 31, 2022 and December 31, 2021, respectively, which extend over varying periods of time.

Also included in commitments is unused availability under demand loans for our private banking clients secured by cash, marketable securities and/or cash value life insurance. Because these loans are demand loans, the company is not obligated to fund or fully fund draw requests.

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, 2022 and December 31, 2021, included in the total unfunded commitments above, was $57.3 million and $60.8 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, 2022 and 2021, there were draws on letters of credit totaling $4.2 million and $3,000, 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 allowance for credit losses on off-balance-sheet credit exposures was $3.4 million and $2.9 million as of March 31, 2022 and December 31, 2021, respectively, which includes allowance for credit losses on unfunded loan commitments and standby letters of credit. The Company recorded a provision on off-balance sheet exposures as liabilities of $500,000 for the three months ended March 31, 2022, and a credit to provision on off-balance sheet exposures as liabilities of $433,000 for the three months ended March 31, 2021.
v3.22.1
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES
 3 Months Ended
Mar. 31, 2022
Allowance for Credit Losses and Leases [Abstract]  
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASESOur allowance for credit losses represents our current estimate of expected credit losses in the portfolio at a specific point in time. This estimate includes credit losses associated with loans and leases evaluated on a collective or pool basis, as well as expected credit losses of the individually evaluated loans and leases that do not share similar risk characteristics. Management evaluates the adequacy
of the allowance at least quarterly, and in doing so relies on various factors including, but not limited to, assessment of historical loss experience, delinquency and non-accrual trends, portfolio growth, underlying collateral coverage and current economic conditions, and economic forecasts over a reasonable and supportable period of time. This evaluation is subjective and requires material estimates that may change over time. The calculation of the allowance for credit losses on loans and leases takes into consideration the inherent risk identified within each of the Company’s three primary loan portfolios. The lifetime loss rates are estimated by analyzing a combination of internal and external data related to historical performance of each loan pool over a complete economic cycle. Results for the three months ended March 31, 2022 and 2021 are presented under CECL methodology. Refer to Note 1, Summary of Significant Accounting Policies, to our unaudited condensed consolidated financial statements for more details on the Company’s policy on allowance for credit losses on loans and leases.

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

Private Banking Loans
Our private banking lending business is 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 marketable securities, cash, and/or cash value life insurance. The Company actively monitors the value of the collateral securing these loans on a daily basis and requires borrowers to continually replenish such collateral as a result of changes in its fair value. Therefore, it is expected that the fair value of the collateral value securing each loan will exceed the loan’s amortized cost and no allowance for credit loss would be required under ASC 326-20-35-6, “Financial Assets Secured by Collateral Maintenance Provisions.”

This portfolio also has some loans that are secured by residential real estate or other financial assets and some that are 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 99.2% and 99.0% of total private banking loans as of March 31, 2022 and December 31, 2021, respectively.

Commercial Banking: Commercial and Industrial Loans and Leases
This loan portfolio primarily includes loans and leases made to financial services and other service and/or manufacturing companies generally for the purposes of financing production, operating capacity, accounts receivable, inventory, equipment, acquisitions and/or recapitalizations. Cash flow from the borrower’s operations is the primary source of repayment for these loans and leases; however, most loans are collateralized by commercial assets.

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 calculation of the allowance for credit losses on loans and leases.

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 in this portfolio 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 and applicable regulatory guidance. 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. 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 – A pass 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 table presents the amortized cost of loans by portfolio, risk rating and year of origination:

As of March 31, 2022
(Dollars in thousands)20222021202020192018Prior
Revolving
Loans (1)
Total
Private Banking:
Pass$535 $20,528 $50,621 $37,485 $39,863 $53,960 $7,065,170 $7,268,162 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total private banking loans535 20,528 50,621 37,485 39,863 53,960 7,065,170 7,268,162 
Commercial and Industrial:
Pass119,481 218,812 133,113 173,683 54,171 62,277 785,537 1,547,074 
Special mention— — 1,203 — — 130 4,000 5,333 
Substandard— — — 1,734 — 604 9,564 11,902 
Doubtful— — — — — — — — 
Total commercial and industrial loans119,481 218,812 134,316 175,417 54,171 63,011 799,101 1,564,309 
Commercial Real Estate:
Pass160,798 581,607 526,695 400,020 288,032 396,281 46,129 2,399,562 
Special mention— 1,796 — — — 370 — 2,166 
Substandard— — 261 5,114 615 6,730 — 12,720 
Doubtful— — — — — — — — 
Total commercial real estate loans160,798 583,403 526,956 405,134 288,647 403,381 46,129 2,414,448 
Loans and leases held-for-investment$280,814 $822,743 $711,893 $618,036 $382,681 $520,352 $7,910,400 $11,246,919 
(1)The Company had no revolving loans which were converted to term loans included in loans and leases held-for-investment as of March 31, 2022.
As of December 31, 2021
(Dollars in thousands)20212020201920182017Prior
Revolving
Loans (1)
Total
Private Banking:
Pass$21,365 $57,722 $29,935 $54,082 $7,121 $50,545 $6,665,728 $6,886,498 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total private banking loans21,365 57,722 29,935 54,082 7,121 50,545 6,665,728 6,886,498 
Commercial and Industrial:
Pass240,980 156,216 186,879 55,729 39,523 25,328 787,778 1,492,433 
Special mention— 1,353 — — — 138 3,826 5,317 
Substandard— — 1,757 — 578 41 8,984 11,360 
Doubtful— 375 — 3,938 — — — 4,313 
Total commercial and industrial loans240,980 157,944 188,636 59,667 40,101 25,507 800,588 1,513,423 
Commercial Real Estate:
Pass572,630 512,139 454,762 333,477 187,090 251,809 35,617 2,347,524 
Special mention— — — — — 2,288 — 2,288 
Substandard— 261 5,395 621 — 7,314 — 13,591 
Doubtful— — — — — — — — 
Total commercial real estate loans572,630 512,400 460,157 334,098 187,090 261,411 35,617 2,363,403 
Loans and leases held-for-investment$834,975 $728,066 $678,728 $447,847 $234,312 $337,463 $7,501,933 $10,763,324 
(1)The Company had no revolving loans which were converted to term loans included in loans and leases held-for-investment as of December 31, 2021.

Accrued interest receivable of $22.2 million and $21.8 million on loans and leases as of March 31, 2022 and December 31, 2021, respectively, was excluded from the amortized cost used in the calculation of allowance for credit losses.

Changes in the allowance for credit losses on loans and leases were as follows for the three months ended March 31, 2022 and 2021:

Three Months Ended March 31, 2022
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$1,891 $8,453 $18,219 $28,563 
Provision (credit) for credit losses169 975 (490)654 
Charge-offs— (4,312)— (4,312)
Recoveries— — 119 119 
Balance, end of period$2,060 $5,116 $17,848 $25,024 
Three Months Ended March 31, 2021
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$2,047 $5,254 $27,329 $34,630 
Provision (credit) for credit losses(280)3,101 (2,608)213 
Charge-offs— (199)— (199)
Recoveries— — — — 
Balance, end of period$1,767 $8,156 $24,721 $34,644 
The following tables present the age analysis of past due loans and leases segregated by class:
March 31, 2022
(Dollars in thousands)30-59 Days
 Past Due		60-89 Days
 Past Due		90 Days or More Past Due Total Past DueCurrentTotal
Private banking$180 $382 $— $562 $7,267,600 $7,268,162 
Commercial and industrial2,338 — — 2,338 1,561,971 1,564,309 
Commercial real estate615 — — 615 2,413,833 2,414,448 
Loans and leases held-for-investment$3,133 $382 $— $3,515 $11,243,404 $11,246,919 
December 31, 2021
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due90 Days or More Past Due Total Past DueCurrentTotal
Private banking$678 $— $— $678 $6,885,820 $6,886,498 
Commercial and industrial— — 4,313 4,313 1,509,110 1,513,423 
Commercial real estate— — — — 2,363,403 2,363,403 
Loans and leases held-for-investment$678 $— $4,313 $4,991 $10,758,333 $10,763,324 

Individually Evaluated 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.

The following tables present the Company’s amortized cost of individually evaluated loans and related information on those loans as of and for the three months ended March 31, 2022 and as of and for the twelve months ended December 31, 2021:
As of and for the Three Months Ended March 31, 2022
(Dollars in thousands)Amortized
Cost		Unpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
With a related allowance recorded:
Private banking$— $— $— $— $— 
Commercial and industrial11,902 11,907 386 14,802 146 
Commercial real estate615 615 20 617 5 
Total with a related allowance recorded12,517 12,522 406 15,419 151 
Without a related allowance recorded:
Private banking— — — — — 
Commercial and industrial— — — — — 
Commercial real estate— — — — — 
Total without a related allowance recorded— — — — — 
Total:
Private banking— — — — — 
Commercial and industrial11,902 11,907 386 14,802 146 
Commercial real estate615 615 20 617 5 
Total$12,517 $12,522 $406 $15,419 $151 
As of and for the Twelve Months Ended December 31, 2021
(Dollars in thousands)Amortized
Cost		Unpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
With a related allowance recorded:
Private banking$— $— $— $— $— 
Commercial and industrial15,673 19,989 4,646 19,553 786 
Commercial real estate1,139 1,139 37 1,139 56 
Total with a related allowance recorded16,812 21,128 4,683 20,692 842 
Without a related allowance recorded:
Private banking— — — — — 
Commercial and industrial— — — — — 
Commercial real estate— — — — — 
Total without a related allowance recorded— — — — — 
Total:
Private banking— — — — — 
Commercial and industrial15,673 19,989 4,646 19,553 786 
Commercial real estate1,139 1,139 37 1,139 56 
Total$16,812 $21,128 $4,683 $20,692 $842 

Individually evaluated loans were $12.5 million and $16.8 million as of March 31, 2022 and December 31, 2021, respectively. There was no interest income recognized on individually evaluated loans that were also on non-accrual status for the three months ended March 31, 2022, and the twelve months ended December 31, 2021. As of March 31, 2022 and December 31, 2021, there were no loans 90 days or more past due and still accruing interest income.

The Company estimates allowance for credit losses individually for loans that do not share similar risk characteristics, including non-accrual loans and loans designated as TDRs, 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 $406,000 and $4.7 million as of March 31, 2022 and December 31, 2021, respectively. 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 expected credit losses and interest income.

The following tables present the allowance for credit losses on loans and leases and amortized costs of individually evaluated loans:
March 31, 2022
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Allowance for credit losses on loans and leases:
Individually evaluated for impairment$— $386 $20 $406 
Collectively evaluated for impairment2,060 4,730 17,828 24,618 
Total allowance for credit losses on loans and leases$2,060 $5,116 $17,848 $25,024 
Loans and leases held-for-investment:
Individually evaluated for impairment$— $11,902 $615 $12,517 
Collectively evaluated for impairment7,268,162 1,552,407 2,413,833 11,234,402 
Loans and leases held-for-investment$7,268,162 $1,564,309 $2,414,448 $11,246,919 
December 31, 2021
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Allowance for credit losses on loans and leases:
Individually evaluated for impairment$— $4,646 $37 $4,683 
Collectively evaluated for impairment1,891 3,807 18,182 23,880 
Total allowance for credit losses on loans and leases$1,891 $8,453 $18,219 $28,563 
Loans and leases held-for-investment:
Individually evaluated for impairment$— $15,673 $1,139 $16,812 
Collectively evaluated for impairment6,886,498 1,497,750 2,362,264 10,746,512 
Loans and leases held-for-investment$6,886,498 $1,513,423 $2,363,403 $10,763,324 

Troubled Debt Restructuring

The aggregate recorded investment in individually evaluated loans with terms modified through a TDR on non-accrual was $0 as of March 31, 2022 and December 31, 2021. The aggregate recorded investment in individually evaluated loans with terms modified through a TDR also accruing interest was $12.5 million as of March 31, 2022 and December 31, 2021. There were no unused commitments on loans designated as TDR as of March 31, 2022 and December 31, 2021.

The modifications made to restructured loans typically consist of an extension of the payment terms or the deferral of principal payments. Loans with an amortized cost of approximately $3.0 million as of March 31, 2022, that have been modified as a TDR within the prior 12 months, were 30 days past due as of March 31, 2022. There were no loans modified as TDRs within 12 months of the corresponding balance sheet date with payment defaults during the three months ended March, 31, 2021.

There were no loans newly designated as TDRs during the three months ended March 31, 2022.

The financial effects of our modifications made to loans newly designated as TDRs during the three months ended March 31, 2021,
were as follows:

Three Months Ended March 31, 2021
(Dollars in thousands)CountRecorded Investment at the time of ModificationCurrent Recorded InvestmentAllowance for Credit Losses on Loans and Leases at the time of ModificationCurrent Allowance for Credit Losses on Loans and Leases
Commercial Real Estate:
Extended term, deferred principal2$4,454 $4,454 $445 $445 
Total2$4,454 $4,454 $445 $445 


Other Real Estate Owned

As of March 31, 2022 and December 31, 2021, the balance of OREO was $2.0 million. There were no residential mortgage loans that were in the process of foreclosure as of March 31, 2022.
v3.22.1
DEPOSITS
 3 Months Ended
Mar. 31, 2022
Deposits [Abstract]  
DEPOSITS DEPOSITS
As of March 31, 2022 and December 31, 2021, deposits were comprised of the following:
Interest Rate
Range		Weighted Average
Interest Rate		Balance
(Dollars in thousands)March 31,
2022		March 31,
2022		December 31,
2021		March 31,
2022		December 31,
2021
Demand and savings accounts:
Noninterest-bearing checking accounts———$790,272 $776,256 
Interest-bearing checking accounts
0.05 to 1.70%
0.54%0.35%4,160,546 4,318,523 
Money market deposit accounts
0.10 to 3.25%
0.55%0.40%6,615,404 5,632,093 
Total demand and savings accounts11,566,222 10,726,872 
Certificates of deposit
0.10 to 2.55%
0.39%0.41%599,254 777,517 
Total deposits$12,165,476 $11,504,389 
Weighted average rate on interest-bearing accounts0.54%0.38%

As of March 31, 2022 and December 31, 2021, the Bank had total brokered deposits of $1.21 billion and $955.5 million, respectively. Reciprocal deposits through Certificate of Deposit Account Registry Service® (“CDARS®”) and Insured Cash Sweep® (“ICS®”) totaled $1.85 billion and $2.06 billion as of March 31, 2022 and December 31, 2021, respectively, and were not considered brokered deposits.

As of March 31, 2022 and December 31, 2021, certificates of deposit with balances of $100,000 or more, excluding brokered and reciprocal deposits, totaled $453.4 million and $477.0 million, respectively. As of March 31, 2022 and December 31, 2021, certificates of deposit with balances of $250,000 or more, excluding brokered and reciprocal deposits, totaled $125.3 million and $126.4 million.

The contractual maturity of certificates of deposit was as follows:
(Dollars in thousands)March 31,
2022		December 31,
2021
12 months or less$540,410 $693,339 
12 months to 24 months52,714 72,735 
24 months to 36 months6,130 11,443 
Total$599,254 $777,517 

Interest expense on deposits was as follows:
Three Months Ended March 31,
(Dollars in thousands)20222021
Interest-bearing checking accounts$3,707 $2,793 
Money market deposit accounts6,352 5,964 
Certificates of deposit687 1,997 
Total interest expense on deposits$10,746 $10,754 
v3.22.1
BORROWINGS
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
BORROWINGS BORROWINGS
As of March 31, 2022 and December 31, 2021, borrowings were comprised of the following:
March 31, 2022December 31, 2021
(Dollars in thousands)Interest RateEnding BalanceMaturity DateInterest RateEnding BalanceMaturity Date
FHLB borrowings:
Issued 3/21/20220.75%$50,000 6/20/2022—%$— 
Issued 3/2/20220.65%50,000 6/2/2022—%— 
Issued 3/1/20220.63%150,000 6/1/2022—%— 
Issued 12/20/2021—%— 0.30%50,000 3/21/2022
Issued 12/2/2021—%— 0.27%50,000 3/2/2022
Issued 12/1/2021—%— 0.27%150,000 3/1/2022
Subordinated notes payable (net of debt issuance costs of $1,738 and $1,792, respectively)
5.75%95,762 5/15/20305.75%95,708 5/15/2030
Senior notes payable (net of debt issuance costs of $500 and $545, respectively)
2.25%124,500 12/15/20242.25%124,455 12/15/2024
Total borrowings, net$470,262 $470,163 

On December 15, 2021, the Company issued a senior unsecured fixed-to-floating rate note (the “Senior Note”) to Raymond James in the amount of $125 million. The Senior Note, which matures on December 15, 2024, bears interest at a fixed annual rate of 2.25% from the date of issuance to December 15, 2022, and thereafter until maturity at a floating annual rate, reset quarterly, equal to the then current three-month Secured Overnight Financing Rate (SOFR). The Senior Note is not redeemable prior to December 15, 2022. On and after December 15, 2022, the Senior Note is redeemable on any interest payment date at 100% of the principal amount thereof, plus accrued and unpaid interest to the redemption date.

In 2020, the Company completed underwritten public offerings of subordinated notes due 2030, raising aggregate proceeds of $97.5 million. The subordinated notes have a term of 10 years at a fixed-to-floating rate of 5.75%. The subordinated notes constitute Tier 2 capital for the Company under federal regulatory capital rules. Beginning on May 15, 2025, with respect to the subordinated notes issued on May 11, 2020, and August 15, 2025, with respect to the subordinated notes issued on June 3, 2020, and on any interest payment date thereafter, the Company may redeem the subordinated notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption.

The Bank’s FHLB borrowing capacity is based on the collateral value of certain securities held in safekeeping at the FHLB, if applicable, 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, 2022, the Bank’s borrowing capacity is based on the information provided in its December 31, 2021 QCR filing. As of March 31, 2022, the Bank had pledged loans of $1.52 billion with the FHLB, for a gross borrowing capacity of $1.09 billion, of which $250.0 million was outstanding in advances. As of December 31, 2021, there was $250.0 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, 2022 and December 31, 2021, 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 $3.4 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 its customer as part of the existing credit facility of that customer. In August 2021, the Bank entered into a standby letter of credit with PNC Bank for $643,000, which expires on August 16, 2022.

The Company maintains an unsecured line of credit of $75.0 million with The Huntington National Bank. As of March 31, 2022, and December 31, 2021 there were no outstanding borrowings under this line of credit.
Interest expense on borrowings was as follows:
Three Months Ended March 31,
(Dollars in thousands)20222021
FHLB borrowings$1,026 $1,072 
Line of credit borrowings— 55 
Senior and subordinated notes payable2,204 1,455 
Total interest expense on borrowings$3,230 $2,582 
v3.22.1
STOCK TRANSACTIONS
 3 Months Ended
Mar. 31, 2022
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]  
STOCK TRANSACTIONS STOCK TRANSACTIONS
During the three months ended March 31, 2022 and 2021, the Company paid dividends of $2.0 million on its 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock, no par value (the “Series A Preferred Stock”) and its 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock, no par value (the “Series B Preferred Stock”). During the three months ended March 31, 2022, the Company paid an in-kind dividend of 11 shares of the Series C Preferred Stock, plus cash paid in lieu of a fractional share.

Under authorization by the Board of Directors of the Company (the “Board”), the Company is permitted to repurchase its common stock up to prescribed amounts, of which $7.3 million remained available as of March 31, 2022. 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. The company did not repurchase any shares under this program during the three months ended March 31, 2022 and 2021.

During the three months ended March 31, 2022, treasury shares increased 123,132, or approximately $4.0 million, in connection with the net settlement of equity awards exercised or vested. During the three months ended March 31, 2021, treasury shares increased 73,384, or approximately $1.5 million, in connection with the net settlement of equity awards exercised or vested.

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. There were no such cancellations during the three months ended March 31, 2022 and 2021.
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		Number of
Treasury Shares
Balance, December 31, 2021121,433 33,263,498 2,402,033 
Issuance of preferred stock11 — — 
Issuance of restricted common stock— 476,325 — 
Forfeitures of restricted common stock— (14,479)— 
Exercise of stock options— 34,250 — 
Increase in treasury stock related to equity awards— (123,132)123,132 
Balance, March 31, 2022121,444 33,636,462 2,525,165 
Balance, December 31, 2020121,400 32,620,150 2,299,422 
Issuance of preferred stock— — — 
Issuance of common stock— — — 
Issuance of restricted common stock— 585,386 — 
Forfeitures of restricted common stock— (10,547)— 
Exercise of stock options— 39,000 — 
Purchase of treasury stock— — — 
Increase in treasury stock related to equity awards— (73,384)73,384 
Reissuance of treasury stock— — — 
Balance, March 31, 2021121,400 33,160,605 2,372,806 
v3.22.1
REGULATORY CAPITAL
 3 Months Ended
Mar. 31, 2022
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
REGULATORY CAPITAL REGULATORY CAPITAL
The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct and material adverse 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”) capital, Tier 1 capital and Total capital to risk-weighted assets, and of Tier 1 capital to average assets (as each term is defined in the applicable regulations). As of March 31, 2022 and December 31, 2021, TriState Capital Holdings, Inc. and TriState Capital Bank exceeded all capital adequacy requirements to which they were subject.

Insured 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 for the period ending March 31, 2022 that management believes have materially changed the Bank’s capital adequacy, as presented in the tables below.

A banking organization is also subject to certain limitations on capital distributions and discretionary bonus payments to executive officers if the organization does not maintain a capital conservation buffer of CET 1 capital to risk-weighted assets ratio of 2.5% or more, in addition to the minimum risk-based capital adequacy levels shown in the tables below. As of March 31, 2022 and December 31, 2021, both the Company and the Bank had CET 1 capital above the levels required to avoid limitations on capital distributions and discretionary bonus payments.

In 2020, U.S. federal regulatory authorities issued a final rule that provides banking organizations that adopt CECL during the 2020 calendar year with the option to delay the impact of CECL on regulatory capital for up to two years, beginning January 1, 2020, followed by a three-year transition period. As the Company adopted CECL on December 31, 2020, the Company elected to utilize the
remainder of the two-year delay of CECL’s impact on its regulatory capital, from December 31, 2020 through December 31, 2021, followed by the three-year transition period of CECL impact on regulatory capital, from January 1, 2022 through December 31, 2024.

The following tables set forth certain information concerning the Company’s and the Bank’s regulatory capital as of March 31, 2022 and December 31, 2021:
March 31, 2022
ActualFor Capital Adequacy PurposesTo be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Total risk-based capital ratio
Company$926,930 13.23 %$560,586 8.00 % N/AN/A
Bank$1,007,981 14.42 %$559,025 8.00 %$698,782 10.00 %
Tier 1 risk-based capital ratio
Company$807,115 11.52 %$420,440 6.00 % N/AN/A
Bank$983,928 14.08 %$419,269 6.00 %$559,025 8.00 %
Common equity tier 1 risk-based capital ratio
Company$624,472 8.91 %$315,330 4.50 % N/AN/A
Bank$983,928 14.08 %$314,452 4.50 %$454,208 6.50 %
Tier 1 leverage ratio
Company$807,115 6.16 %$524,449 4.00 % N/AN/A
Bank$983,928 7.52 %$523,676 4.00 %$654,595 5.00 %
December 31, 2021
ActualFor Capital Adequacy PurposesTo be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Total risk-based capital ratio
Company$910,320 13.43 %$542,409 8.00 %N/AN/A
Bank$986,657 14.60 %$540,639 8.00 %$675,798 10.00 %
Tier 1 risk-based capital ratio
Company$788,910 11.64 %$406,807 6.00 %N/AN/A
Bank$960,955 14.22 %$405,479 6.00 %$540,639 8.00 %
Common equity tier 1 risk-based capital ratio
Company$607,367 8.96 %$305,105 4.50 %N/AN/A
Bank$960,955 14.22 %$304,109 4.50 %$439,269 6.50 %
Tier 1 leverage ratio
Company$788,910 6.36 %$496,431 4.00 %N/AN/A
Bank$960,955 7.76 %$495,417 4.00 %$619,271 5.00 %
v3.22.1
EARNINGS PER COMMON SHARE
 3 Months Ended
Mar. 31, 2022
Earnings Per Share [Abstract]  
EARNINGS PER COMMON SHARE EARNINGS PER COMMON SHARE
The computation of basic and diluted earnings per common share for the periods presented were as follows:

Three Months Ended March 31,
(Dollars in thousands, except per share data)20222021
Basic earnings per common share:
Net income$21,641 $16,200 
Less: Preferred dividends on Series A and Series B1,962 1,962 
Less: Preferred dividends on Series C1,171 1,097 
Net income available to common shareholders$18,508 $13,141 
Allocation of net income available:
Common shareholders$15,575 $11,127 
Series C convertible preferred shareholders2,480 1,685 
Warrant shareholders453 329 
Total$18,508 $13,141 
Basic weighted average common shares outstanding:
Basic common shares31,699,023 31,224,474 
Series C convertible preferred stock, as-if converted5,047,272 4,727,272 
Warrants, as-if exercised922,438 922,438 
Basic earnings per common share$0.49 $0.36 
Diluted earnings per common share:
Income available to common shareholders after allocation$15,575 $11,127 
Diluted weighted average common shares outstanding:
Basic common shares31,699,023 31,224,474 
Restricted stock - dilutive956,414 801,798 
Stock options - dilutive119,410 160,762 
Diluted common shares32,774,847 32,187,034 
Diluted earnings per common share$0.48 $0.35 
Three Months Ended March 31,
Anti-dilutive shares:20222021
Restricted stock48,147 71,810 
Series C convertible preferred stock, as-if converted5,047,272 4,727,272 
Warrants, as-if exercised922,438 922,438 
Total anti-dilutive shares
6,017,857 5,721,520 

The Series C Preferred Stock and warrants are anti-dilutive under the treasury stock method compared to the basic EPS calculation under the two-class method.
v3.22.1
DERIVATIVES AND HEDGING ACTIVITY
 3 Months Ended
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND HEDGING ACTIVITY DERIVATIVES AND HEDGING ACTIVITY
RISK MANAGEMENT OBJECTIVE OF USING DERIVATIVES

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash 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.
When providing this service, the Company generally 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, 2022 and December 31, 2021:
Asset DerivativesLiability Derivatives
as of March 31, 2022as of March 31, 2022
(Dollars in thousands)Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate productsOther assets$5,617 Other liabilities$362 
Derivatives not designated as hedging instruments:
Interest rate productsOther assets97,531 Other liabilities97,439 
TotalOther assets$103,148 Other liabilities$97,801 
Asset DerivativesLiability Derivatives
as of December 31, 2021as of December 31, 2021
(Dollars in thousands)Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate productsOther assets$1,217 Other liabilities$2,838 
Derivatives not designated as hedging instruments:
Interest rate productsOther assets88,956 Other liabilities88,919 
TotalOther assets$90,173 Other liabilities$91,757 

The following tables show the impact legally enforceable master netting agreements had on the Company’s derivative financial instruments as of March 31, 2022 and December 31, 2021:
Offsetting of Derivative Assets
Gross Amounts of Recognized AssetsGross Amounts Offset in the Statement of Financial PositionNet Amounts of Assets
presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial PositionNet Amount
(Dollars in thousands)Financial InstrumentsCash Collateral Received
March 31, 2022$103,148 $— $103,148 $(14,815)$— $88,333 
December 31, 2021$90,173 $— $90,173 $(13,929)$— $76,244 

Offsetting of Derivative Liabilities
Gross Amounts of Recognized LiabilitiesGross Amounts Offset in the Statement of Financial PositionNet Amounts of Liabilities
presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial PositionNet Amount
(Dollars in thousands)Financial InstrumentsCash Collateral Posted
March 31, 2022$97,801 $— $97,801 $(14,815)$(3,327)$79,659 
December 31, 2021$91,757 $— $91,757 $(13,929)$(59,898)$17,930 

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 these objectives, 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, 2022.

Characteristics of the Company’s interest rate derivative transactions designated as cash flow hedges of interest rate risk as of March 31, 2022, 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 5/30/2019$50,000 2.05%$130 6/1/20222
Issued 5/30/201950,000 2.03%89 6/1/202314
Issued 5/30/201950,000 2.04%95 6/1/202426
Issued 3/2/202050,000 0.98%(438)3/2/202535
Issued 3/20/202050,000 0.60%(657)3/20/202536
Total$250,000 $(781)
(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)2022202120222021
Derivatives designated as hedging instruments:Location of Gain (Loss) Recognized in Income on DerivativesRealized Gain (Loss) Recognized in Income on DerivativesUnrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives
Interest rate productsInterest expense$(778)$(846)$6,026 $2,216 

NON-DESIGNATED HEDGES

The Company does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate derivatives with its commercial and private 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 generally 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, 2022, the Company had interest rate derivative transactions with an aggregate notional amount of $4.99 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)20222021
Derivatives not designated as hedging instruments:Location of Gain (Loss) Recognized in Income on DerivativesAmount of Gain (Loss) Recognized in Income on Derivatives
Interest rate productsNon-interest income$12 $31 
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-capitalized or 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, 2022, the termination value of derivatives for which the Company had master netting arrangements with the counterparty and in a net liability position was $3.3 million, including accrued interest. As of March 31, 2022, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $4.9 million which is considered restricted cash. If the Company had breached any of these provisions as of March 31, 2022, it could have been required to settle its obligations under the agreements at their termination value.
v3.22.1
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS
 3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value estimates of financial instruments are based on the present value of expected future cash flows, quoted market prices of similar financial instruments, if available, and other valuation techniques. These valuations are significantly affected by discount rates, cash flow assumptions and risk assumptions used. Therefore, fair value estimates may not be substantiated by comparison to independent markets and are not intended to reflect the proceeds that may be realized in an immediate settlement of instruments. Accordingly, the aggregate fair value amounts presented below do not represent the underlying value of the Company.

FAIR VALUE MEASUREMENTS

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

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

•Level 1 – Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in actively traded markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities.
•Level 2 – Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets or liabilities that are actively traded. Level 2 also includes pricing models in which the inputs are corroborated by market data, such as 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, 2022 and December 31, 2021:
March 31, 2022
(Dollars in thousands)Level 1Level 2Level 3Total Assets /
Liabilities
at Fair Value
Financial assets:
Debt securities available-for-sale:
U.S. treasury notes$96,659 $— $— $96,659 
Corporate bonds$— $151,051 $— $151,051 
Trust preferred securities— 13,603 — 13,603 
Non-agency residential mortgage-backed securities— 288,848 — 288,848 
Agency collateralized mortgage obligations— 15,541 — 15,541 
Agency mortgage-backed securities— 137,034 — 137,034 
Agency debentures— 6,837 — 6,837 
Municipal bonds— 4,589 — 4,589 
Equity securities4,867 — — 4,867 
Interest rate swaps— 103,148 — 103,148 
Total financial assets101,526 720,651 — 822,177 
Financial liabilities:
Interest rate swaps— 97,801 — 97,801 
Total financial liabilities$— $97,801 $— $97,801 
December 31, 2021
(Dollars in thousands)Level 1Level 2Level 3Total Assets /
Liabilities
at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds$— $146,192 $— $146,192 
Trust preferred securities— 13,627 — 13,627 
Non-agency mortgage-backed securities— 277,118 — 277,118 
Agency collateralized mortgage obligations— 16,498 — 16,498 
Agency mortgage-backed securities— 120,477 — 120,477 
Agency debentures— 7,228 — 7,228 
Municipal bonds— 5,185 — 5,185 
Equity securities4,975 — — 4,975 
Interest rate swaps— 90,173 — 90,173 
Total financial assets4,975 676,498 — 681,473 
Financial liabilities:
Interest rate swaps— 91,757 — 91,757 
Total financial liabilities$— $91,757 $— $91,757 

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. U.S. treasury securities and equity securities (including mutual funds) are classified as Level 1 because these securities are in actively traded markets.
INTEREST RATE SWAPS
The fair value of interest rate swaps is estimated using inputs that are observable or that can be corroborated by observable market data and therefore are classified as Level 2. These fair value estimations include primarily market observable inputs such as the forward LIBOR swap curve.

NON-RECURRING FAIR VALUE MEASUREMENTS

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

The following tables represent the balances of assets measured at fair value on a non-recurring basis as of March 31, 2022 and December 31, 2021:
March 31, 2022
(Dollars in thousands)Level 1Level 2Level 3Total Assets
at Fair Value
Loans measured for impairment, net$— $— $12,111 $12,111 
Other real estate owned— — 2,005 2,005 
Total assets$— $— $14,116 $14,116 
December 31, 2021
(Dollars in thousands)Level 1Level 2Level 3Total Assets
at Fair Value
Loans measured for impairment, net$— $— $12,129 $12,129 
Other real estate owned— — 2,005 2,005 
Total assets$— $— $14,134 $14,134 

As of March 31, 2022 and December 31, 2021, the Company recorded $406,000 and $4.7 million, respectively, of specific reserves to allowance for credit losses on loans and leases as a result of adjusting the fair value of individually evaluated loans.

INDIVIDUALLY EVALUATED LOANS
The Company evaluates individually loans that do not share similar risk characteristics, including non-accrual loans and loans designated as TDRs. Specific allowance for credit losses is measured based on a market approach, 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 individually evaluated 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, individually evaluated loans are classified as Level 3.

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, 2022 and December 31, 2021:
March 31, 2022
(Dollars in thousands)Fair Value
Valuation Techniques (1)(2)
Significant Unobservable InputsWeighted Average Discount Rate
Loans measured for impairment, net$12,111 OtherDiscount due to restructured nature of operations3%
Other real estate owned$2,005 CollateralAppraisal value and discount due to salability conditions12%
(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.
(2)The collateral which is used in the valuation of these loans is commercial real estate.
December 31, 2021
(Dollars in thousands)Fair Value
Valuation Techniques (1)(2)
Significant Unobservable InputsWeighted Average
Discount Rate
Loans measured for impairment, net$12,129 OtherDiscount due to restructured nature of operations3%
Other real estate owned$2,005 CollateralAppraisal value and discount due to salability conditions12%
(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.
(2)The collateral which is used in the valuation of these loans is commercial real estate.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table summarizes the carrying amounts and estimated fair values of financial instruments:
March 31, 2022December 31, 2021
(Dollars in thousands)Fair Value
Level		Carrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
Financial assets:
Cash and cash equivalents1$481,874 $481,874 $452,016 $452,016 
Debt securities available-for-sale196,659 96,659 — — 
Debt securities available-for-sale2617,503 617,503 586,325 586,325 
Debt securities held-to-maturity139,120 35,964 39,098 38,666 
Debt securities held-to-maturity2768,486 714,653 763,478 753,296 
Equity securities14,867 4,867 4,975 4,975 
Federal Home Loan Bank stock211,802 11,802 11,802 11,802 
Loans and leases held-for-investment, net311,221,895 11,195,503 10,734,761 10,717,430 
Accrued interest receivable225,891 25,891 25,060 25,060 
Investment management fees receivable, net28,390 8,390 8,641 8,641 
Bank owned life insurance299,535 99,535 98,928 98,928 
Other real estate owned32,005 2,005 2,005 2,005 
Interest rate swaps2103,148 103,148 90,173 90,173 
Financial liabilities:
Deposits2$12,165,476 $12,147,795 $11,504,389 $11,504,856 
Borrowings, net2470,262 469,075 470,163 474,949 
Interest rate swaps297,801 97,801 91,757 91,757 

During the three months ended March 31, 2022 and 2021, 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, 2022 and December 31, 2021:

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 third-party pricing models. U.S. treasury securities and equity securities (including mutual funds) are classified as Level 1 because these securities are in
actively traded markets.

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

OTHER REAL ESTATE OWNED
OREO is carried at fair value less estimated selling costs.

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.
v3.22.1
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 3 Months Ended
Mar. 31, 2022
Equity [Abstract]  
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 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,
20222021
(Dollars in thousands)Debt SecuritiesDerivativesTotalDebt SecuritiesDerivativesTotal
Balance, beginning of period$(2,385)$(1,039)$(3,424)$3,834 $(6,531)$(2,697)
Change in unrealized holding gains (losses)(22,822)4,573 (18,249)(954)1,683 729 
Losses (gains) reclassified from other comprehensive income— 591 591 (1)642 641 
Net other comprehensive income (loss)(22,822)5,164 (17,658)(955)2,325 1,370 
Balance, end of period$(25,207)$4,125 $(21,082)$2,879 $(4,206)$(1,327)
v3.22.1
CONTINGENT LIABILITIES
 3 Months Ended
Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
CONTINGENT LIABILITIES CONTINGENT LIABILITIES
Following the public announcement of the Agreement and Plan of Merger (the “Merger Agreement”) dated as of October 20, 2021, among the Company, Raymond James Financial, Inc. (“Raymond James”), Macaroon One LLC (“Merger Sub 1”) and Macaroon Two LLC (“Merger Sub 2”), six lawsuits were filed by purported stockholders of the Company against the Company and the members of the Company’s board of directors. Each complaint contains allegations contending, among other things, that the proxy statement/ prospectus contained within the Registration Statement on Form S-4 filed in connection with the proposed acquisition of the Company by Raymond James failed to disclose certain allegedly material information in violation of federal securities laws. The complaints seek injunctive relief enjoining the acquisition, attorneys’ and experts’ fees, and other remedies. The outcome of the pending and any additional future litigation is uncertain. If any case is not resolved, the lawsuit(s) could prevent or delay completion of the acquisition and result in substantial costs to Raymond James and the Company, including any costs associated with the indemnification of directors and officers. One of the conditions to the closing of the acquisition is the absence of any order, injunction, law, regulation or other legal restraints preventing, prohibiting or making illegal the completion of the acquisition or any other transactions contemplated by the Merger Agreement. As such, if the plaintiffs are successful in obtaining an order or injunction prohibiting the completion of the acquisition on the agreed-upon terms, then the acquisition may not be completed within the expected timeframe or at all. The defense or settlement of any lawsuit or claim that remains unresolved at the time the acquisition is completed may adversely affect the combined company’s business, financial condition, results of operations and cash flows.

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 other material unasserted claims. In the opinion of management, there are no other potential claims that could have a material adverse effect on the Company’s financial position, liquidity or results of operations.
v3.22.1
SEGMENTS
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
SEGMENTS 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,
2022		December 31,
2021
Assets:
Bank$13,602,380 $12,926,161 
Investment management82,435 86,563 
Parent and other(7,148)(7,872)
Total assets$13,677,667 $13,004,852 

Three Months Ended March 31, 2022Three Months Ended March 31, 2021
(Dollars in thousands)BankInvestment
Management		Parent
and Other		ConsolidatedBankInvestment
Management		Parent
and Other		Consolidated
Income statement data:
Interest income$67,561 $— $16 $67,577 $51,992 $— $— $51,992 
Interest expense11,776 — 2,200 13,976 11,839 — 1,497 13,336 
Net interest income (loss)55,785 — (2,184)53,601 40,153 — (1,497)38,656 
Provision for credit losses563 — — 563 224 — — 224 
Net interest income (loss) after provision for credit losses55,222 — (2,184)53,038 39,929 — (1,497)38,432 
Non-interest income:
Investment management fees— 9,444 (359)9,085 — 9,234 (234)9,000 
Net gain on the sale and call of debt securities— — — — (1)— — (1)
Other non-interest income (loss)6,167 (31)(124)6,012 4,631 21 — 4,652 
Total non-interest income (loss)6,167 9,413 (483)15,097 4,630 9,255 (234)13,651 
Non-interest expense:
Intangible amortization expense— 478 — 478 — 478 — 478 
Other non-interest expense31,238 8,208 1,261 40,707 22,655 7,442 703 30,800 
Total non-interest expense31,238 8,686 1,261 41,185 22,655 7,920 703 31,278 
Income (loss) before tax30,151 727 (3,928)26,950 21,904 1,335 (2,434)20,805 
Income tax expense (benefit)5,833 199 (723)5,309 4,729 310 (434)4,605 
Net income (loss)$24,318 $528 $(3,205)$21,641 $17,175 $1,025 $(2,000)$16,200 
v3.22.1
SUBSEQUENT EVENTS
 3 Months Ended
Mar. 31, 2022
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTSOn April 11, 2022, 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, 2022, to preferred shareholders of record as of the close of business on June 15, 2022. The Board also declared an in-kind dividend of 11 shares of the Company’s Series C Preferred Stock, plus cash in lieu of a fractional share, which is payable on July 1, 2022, to preferred shareholders of record of the Series C Preferred Stock as of the close of business on June 15, 2022.
v3.22.1
BASIS OF INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 3 Months Ended
Mar. 31, 2022
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 middle-market businesses and financial services providers and focused 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 and supervision by the Federal Deposit Insurance Corporation (“FDIC”), the Pennsylvania Department of Banking and Securities and the Board of Governors of the Federal Reserve System (“Federal Reserve”). Since the Bank’s consolidated total assets exceeded $10 billion for four consecutive quarters, as of December 31, 2021, the Company and the Bank are subject to regulatory examination and supervision of the Consumer Financial Protection Bureau (“CFPB”) with respect to certain consumer protection laws. Chartwell is a registered investment adviser regulated by the U.S. 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.

On October 20, 2021, the Company announced that it entered into a definitive agreement under which Raymond James Financial, Inc. (“Raymond James”) will acquire the outstanding shares of stock of the Company for consideration that is a combination of cash and Raymond James stock at a fixed exchange rate, valued in aggregate at approximately $1.10 billion based on the trading value of Raymond James’ stock on the announcement date. The Company’s shareholders approved the transaction on February 28, 2022. The acquisition is subject to customary closing conditions, including receipt of regulatory approvals, and is currently expected to close by the end of the second quarter of 2022.
Use of estimates
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”) 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 credit losses on loans and leases, valuation of goodwill and other intangible assets and their evaluation for impairment, fair value measurements 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, 2021, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 1, 2022.
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. Under agreements with certain of its derivative counterparties, the Company is required to maintain minimum cash collateral posting thresholds with such counterparties. The cash subject to these agreements is considered restricted for these purposes.
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, net of allowance for credit losses; (2) trading, which are debt securities bought and held principally for the purpose of selling them in the near term and are 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 are 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. Management evaluates expected credit losses on held-to-maturity debt securities on a collective or pool basis, by investment category and credit rating. The Company measures credit losses by comparing the present value of cash flows expected to be collected to the amortized cost of the security considering historical credit loss information, adjusted for current conditions and reasonable and supportable economic forecasts. The Company’s investment securities can be classified into the following pools based on similar risk characteristics: (1) U.S. government agencies, (2) state and local municipalities, (3) domestic corporations, including trust preferred securities, and (4) non-agency securitizations. The Company’s U.S. government agency securities are issued by U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. For the remaining pools of securities, the credit rating of the issuers, the investment’s cash flow characteristics and the underlying instruments securitizing certain bonds are the most relevant risk characteristics of the investment portfolio. The Company’s investment policy only allows for purchases of investments with investment grade credit ratings and the Company continuously monitors for changes in credit ratings. Probability of default and loss given default rates are based on historical averages for each investment pool, adjusted to reflect the impact of a single, forward-looking forecast of certain macroeconomic variables, such as unemployment rates and interest rate spreads, which management considers to be both reasonable and supportable. The forecast of these macroeconomic variables is applied over a period of three years and reverts to historical averages over a two-year reversion period.

Management evaluates available-for-sale debt securities in an unrealized loss position quarterly for expected credit losses. 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 an available-for-sale 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, the security’s amortized cost is written down to fair value through current period earnings. For available-for-sale 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, a provision for credit losses is recorded through current period earnings for the amount of the valuation decline below amortized cost that is attributable to credit losses. Management considers the extent to which fair value is less than amortized cost, credit ratings and other factors related to
the security in assessing whether credit loss exists. The Company measures credit loss by comparing the present value of cash flows expected to be collected to the amortized cost of the security. An allowance for credit losses is measured by the difference that the present value of cash flows expected to be collected is less than the amortized cost, limited by the amount that the fair value is less than the amortized cost. 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. Changes in the allowance for credit losses are recorded as provision for credit losses. Losses are charged against the allowance when management believes the security is uncollectible or management intends to sell or is required to sell the security.

The recognition of interest income on a debt security is discontinued when any principal or interest payment becomes 90 days past due, at which time the debt security is placed on non-accrual status. All accrued and unpaid interest on such debt security is then reversed. Accrued interest receivable is excluded from the estimate of expected credit losses.
Federal Home Loan Bank stock
FEDERAL HOME LOAN BANK STOCK
The Bank 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, 2022 and December 31, 2021. 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 amortized cost. Amortized cost is the unpaid principal balance, 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. The Company evaluates any loan reasonably expected to become a TDR, regardless of whether the loan is on accrual or non-accrual status. 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 (e.g., 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 creditworthiness 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 credit losses and leases
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES
The allowance for credit losses is a valuation account that is deducted from the amortized cost of loans and leases to present management’s best estimate of the net amount expected to be collected. Adjustments to the allowance for credit losses are established through provisions for credit losses that are recorded in the consolidated statements of income. Loans and leases are charged off against the allowance for credit 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 allowance for credit losses. Accrued interest receivable is excluded from the estimate of expected credit losses.

The allowance for credit losses represents estimates of expected credit losses for homogeneous loan pools that share similar risk characteristics such as commercial and industrial (“C&I”) loans and leases, commercial real estate (“CRE”) loans, and private banking loans, which include consumer lines of credit and residential mortgages. The Company periodically reassesses each loan pool to ensure that the loans within the pool continue to share similar risk characteristics. Non-accrual loans and loans designated as TDRs are assessed individually using a discounted cash flow method or, where a loan is collateral dependent, based upon the fair value of the collateral less estimated selling costs.

The collateral on our private banking loans that are secured by cash, marketable securities and/or cash value life insurance is monitored daily and requires borrowers to continually replenish such collateral as a result of changes in its fair value. Therefore, it is expected that the fair value of the collateral securing each loan will exceed the loan’s amortized cost and no allowance for credit losses would be required under Accounting Standard Codification (“ASC”) 326-20-35-6, “Financial Assets Secured by Collateral Maintenance Provisions.”

In estimating the general allowance for credit losses for loans evaluated on a collective or pool basis, management considers past events, current conditions, and reasonable and supportable economic forecasts, 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 and forecasted local and regional economic conditions in the markets that we serve.

Management bases the computation of the general allowance for credit losses 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. Management has developed a methodology that is applied to each of the three primary loan portfolios: C&I loans and leases, CRE loans and private banking loans (other than those secured by cash, marketable securities and/or cash value life insurance).

For each portfolio, management estimates expected credit losses over the life of each loan utilizing lifetime or cumulative loss rate methodology, which identifies macroeconomic factors and asset-specific characteristics that are correlated with credit loss experience, including loan age, loan type, leverage, risk rating, interest rate spread and industry. The lifetime loss rate is applied to the amortized cost of the loan. This methodology builds on default and recovery probabilities by utilizing pool-specific historical loss rates to calculate expected credit losses. These pool-specific historical loss rates may be adjusted for a forecast of certain macroeconomic variables, as further discussed below, and other factors such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated as of the measurement date. Each time the Company measures expected credit losses, the Company assesses the relevancy of historical loss information and considers any necessary adjustments to address any differences in asset-specific characteristics.

The allowance for credit losses represents management’s current estimate of expected credit losses in the loan and lease portfolio. Expected credit losses are estimated over the contractual term of the loans, which includes extension or renewal options that are not unconditionally cancellable by the Company and are adjusted for expected prepayments when appropriate. Management’s judgment takes into consideration past events, current conditions and reasonable and supportable economic forecasts including 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 in making such determinations, and that the present allowance for credit losses represents management’s best estimate of current expected credit losses, 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.
The lifetime loss rates are estimated by analyzing a combination of internal and external data related to historical performance of each loan pool over a complete economic cycle. Loss rates are based on historical averages for each loan pool, adjusted to reflect the impact of a single, forward-looking forecast of certain macroeconomic variables such as gross domestic product, unemployment rates, corporate bond credit spreads and commercial property values, which management considers to be both reasonable and supportable. The single, forward-looking forecast of these macroeconomic variables is applied over the remaining life of the loan pools. The development of the reasonable and supportable forecast incorporates an assumption that each macroeconomic variable will revert to a long-term expectation starting in years two to four of the forecast and largely completing within the first five years of the forecast.

The secondary factor is intended to capture additional risks related to events and circumstances that management believes have an impact on the performance of the loan portfolio that are not considered as part of the primary factor. 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 an allowance level based on management’s judgment as to the expected impact of each risk factor on each loan portfolio and is monitored on a quarterly basis. As the trend in any risk factor changes, management evaluates the need for a corresponding change to occur in the allowance associated with each respective risk factor to provide the most appropriate estimate of allowance for credit losses on loans and leases.

The Company also maintains an allowance for credit losses on off-balance sheet credit exposures for unfunded loan commitments. This allowance is reflected as a component of other liabilities which represents management’s current estimate of expected losses in the unfunded loan commitments. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life based on management’s consideration of past events, current conditions and reasonable and supportable economic forecasts. 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 credit losses on outstanding loans. Unconditionally cancellable loans are excluded from the calculation of allowance for credit losses on off-balance sheet credit exposures.
Investment management fees
INVESTMENT MANAGEMENT FEES
Revenue from contracts with customers is recognized when promised services are delivered to our customers in an amount we expect to receive in exchange for those services (i.e., the transaction price). Payment for the majority of our services is considered to be variable consideration, as the amount of revenue we expect to receive is subject to factors outside of our control, including market conditions. Variable consideration is only included in revenue when amounts are not subject to significant reversal, which is generally when uncertainty around the amount of revenue to be received is resolved. We record deferred revenue from contracts with customers when payment is received prior to the performance of our obligation to the customer.

We earn investment management fees for performing portfolio management for retail and institutional clients. Such fees are generally calculated as a percentage of the value of client assets or, for certain pooled assets such as mutual funds, on the net asset value of assets managed. The value of these assets is impacted by market fluctuations and net inflows or outflows of assets. Fees are generally collected quarterly and are based on balances either at the beginning of the quarter or the end of the quarter, or on average balances throughout the quarter. Asset management fees are recognized on a monthly basis (i.e., over time) as the services are performed.
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.
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.

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 assets, 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 of such assets 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 of the assets 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 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, senior notes payable 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. The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities, according to dividends and participation rights in undistributed earnings. Under this method, net earnings is reduced by the amount of dividends declared in the current period for common shareholders and participating security holders. The remaining earnings or “undistributed earnings” are allocated between common stock and participating securities to the extent that each security may share in earnings as if all the earnings for the period had been distributed.

The two-class method requires the Company’s Series C perpetual non-cumulative convertible non-voting preferred stock (the “Series C Preferred Stock”) and outstanding warrants to be treated as participating classes of securities in the computation of EPS. In addition, net income is reduced by dividends declared on all series of preferred stock to derive net income available to common shareholders. Basic EPS is computed by dividing net income allocable to common shareholders by the weighted average number of the Company’s common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution upon the exercise of stock options and warrants, 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 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 is required to have minimum collateral posting thresholds with certain of its derivative counterparties, and this collateral is considered restricted cash.

The Company executes interest rate derivatives with its commercial banking customers to facilitate their respective risk management strategies. The Company generates swap fee income through these transactions. These derivatives are simultaneously and economically hedged by offsetting derivatives that the Company executes with a third party, such that the Company generally eliminates its interest rate exposure resulting from such transactions and these derivatives 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 mature 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.
Recent accounting developments
RECENT ACCOUNTING DEVELOPMENTS

In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2022-02—Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 eliminates the separate recognition and measurement guidance for TDRs such that creditors will apply the same guidance to all loan modifications when determining whether a modification results in a new receivable or a continuation of an existing receivable. The ASU also enhances existing loan modification related financial statement disclosures while also requiring new disclosure of current-period gross charge-offs by year of origination for financing receivables and net investments in leases. For entities that have adopted the current expected credit loss (“CECL”) methodology, the ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2022-02 on its consolidated financial statements.

In March 2022, the FASB issued ASU 2022-01—Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method. ASU 2022-01 establishes the portfolio-layer method, which expands an entity’s ability to achieve fair value hedge accounting for hedges of financial assets in a closed portfolio. The ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2022-01 on its consolidated financial statements.

On October 28, 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU is effective for annual and interim periods in fiscal years beginning after December 15, 2022 and provides an exception to fair value measurement for revenue contracts acquired in business combinations. Early adoption is permitted for both interim and annual financial statements that have not yet been issued (or made available for issuance). The Company is currently evaluating the impact of adopting ASU 2021-05 on its consolidated financial statements.
v3.22.1
INVESTMENT SECURITIES (Tables)
 3 Months Ended
Mar. 31, 2022
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 as of March 31, 2022:
March 31, 2022
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation
Allowance for Credit Losses (1)
Estimated
Fair Value
Debt securities available-for-sale:
U.S. treasury notes$99,416 $— $2,757 $— $96,659 
Corporate bonds153,425 245 2,619 — 151,051 
Non-agency residential mortgage-backed securities307,202 3,599 21,953 — 288,848 
Trust preferred securities13,635 118 150 — 13,603 
Agency collateralized mortgage obligations15,585 12 56 — 15,541 
Agency mortgage-backed securities147,458 21 10,445 — 137,034 
Agency debentures6,733 104 — — 6,837 
Municipal bonds5,181 — 592 — 4,589 
Total debt securities available-for-sale$748,635 $4,099 $38,572 $— $714,162 
(1)Available-for-sale debt securities are recorded on the consolidated statements of financial condition at estimated fair value, which includes allowance for credit losses, if applicable.
March 31, 2022
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Allowance for Credit Losses (1)
Debt securities held-to-maturity:
U.S. treasury notes$39,120 $— $3,156 $35,964 $— 
Corporate bonds25,165 226 110 25,281 11 
Agency debentures66,540 131 2,749 63,922 — 
Municipal bonds410 — — 410 — 
Non-agency residential mortgage-backed securities173,010 — 13,683 159,327 34 
Agency mortgage-backed securities503,406 176 37,869 465,713 — 
Total debt securities held-to-maturity$807,651 $533 $57,567 $750,617 $45 
(1)Held-to-maturity debt securities are recorded on the consolidated statements of financial condition at amortized cost, net of allowance for credit losses.
Debt securities available-for-sale and held-to-maturity were comprised of the following as of December 31, 2021:
December 31, 2021
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation
Allowance for Credit Losses (1)
Estimated
Fair Value
Debt securities available-for-sale:
Corporate bonds$145,568 $897 $273 $— $146,192 
Trust preferred securities13,610 200 183 — 13,627 
Non-agency residential mortgage-backed securities281,282 — 4,164 — 277,118 
Agency collateralized mortgage obligations16,458 42 2 — 16,498 
Agency mortgage-backed securities122,044 32 1,599 — 120,477 
Agency debentures6,732 496 — — 7,228 
Municipal bonds5,189 — 4 — 5,185 
Total debt securities available-for-sale$590,883 $1,667 $6,225 $— $586,325 
(1)Available-for-sale debt securities are recorded on the consolidated statements of financial condition at estimated fair value, which includes allowance for credit losses, if applicable.
December 31, 2021
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Allowance for Credit Losses (1)
Debt securities held-to-maturity:
U.S. treasury notes$39,097 $12 $443 $38,666 — $— 
Corporate bonds25,167 827 16 25,978 71 
Agency debentures36,794 534 395 36,933 — 
Municipal bonds890 1 — 891 — 
Non-agency residential mortgage-backed securities184,731 1 3,088 181,644 65 
Agency mortgage-backed securities516,033 570 8,753 507,850 — 
Total debt securities held-to-maturity$802,712 $1,945 $12,695 $791,962 $136 
(1)Held-to-maturity debt securities are recorded on the consolidated statements of financial condition at amortized cost, net of allowance for credit losses.
Schedule of investment securities held-to-maturity
Debt securities available-for-sale and held-to-maturity were comprised of the following as of March 31, 2022:
March 31, 2022
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation
Allowance for Credit Losses (1)
Estimated
Fair Value
Debt securities available-for-sale:
U.S. treasury notes$99,416 $— $2,757 $— $96,659 
Corporate bonds153,425 245 2,619 — 151,051 
Non-agency residential mortgage-backed securities307,202 3,599 21,953 — 288,848 
Trust preferred securities13,635 118 150 — 13,603 
Agency collateralized mortgage obligations15,585 12 56 — 15,541 
Agency mortgage-backed securities147,458 21 10,445 — 137,034 
Agency debentures6,733 104 — — 6,837 
Municipal bonds5,181 — 592 — 4,589 
Total debt securities available-for-sale$748,635 $4,099 $38,572 $— $714,162 
(1)Available-for-sale debt securities are recorded on the consolidated statements of financial condition at estimated fair value, which includes allowance for credit losses, if applicable.
March 31, 2022
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Allowance for Credit Losses (1)
Debt securities held-to-maturity:
U.S. treasury notes$39,120 $— $3,156 $35,964 $— 
Corporate bonds25,165 226 110 25,281 11 
Agency debentures66,540 131 2,749 63,922 — 
Municipal bonds410 — — 410 — 
Non-agency residential mortgage-backed securities173,010 — 13,683 159,327 34 
Agency mortgage-backed securities503,406 176 37,869 465,713 — 
Total debt securities held-to-maturity$807,651 $533 $57,567 $750,617 $45 
(1)Held-to-maturity debt securities are recorded on the consolidated statements of financial condition at amortized cost, net of allowance for credit losses.
Debt securities available-for-sale and held-to-maturity were comprised of the following as of December 31, 2021:
December 31, 2021
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation
Allowance for Credit Losses (1)
Estimated
Fair Value
Debt securities available-for-sale:
Corporate bonds$145,568 $897 $273 $— $146,192 
Trust preferred securities13,610 200 183 — 13,627 
Non-agency residential mortgage-backed securities281,282 — 4,164 — 277,118 
Agency collateralized mortgage obligations16,458 42 2 — 16,498 
Agency mortgage-backed securities122,044 32 1,599 — 120,477 
Agency debentures6,732 496 — — 7,228 
Municipal bonds5,189 — 4 — 5,185 
Total debt securities available-for-sale$590,883 $1,667 $6,225 $— $586,325 
(1)Available-for-sale debt securities are recorded on the consolidated statements of financial condition at estimated fair value, which includes allowance for credit losses, if applicable.
December 31, 2021
(Dollars in thousands)Amortized
Cost		Gross Unrealized
Appreciation		Gross Unrealized
Depreciation		Estimated
Fair Value
Allowance for Credit Losses (1)
Debt securities held-to-maturity:
U.S. treasury notes$39,097 $12 $443 $38,666 — $— 
Corporate bonds25,167 827 16 25,978 71 
Agency debentures36,794 534 395 36,933 — 
Municipal bonds890 1 — 891 — 
Non-agency residential mortgage-backed securities184,731 1 3,088 181,644 65 
Agency mortgage-backed securities516,033 570 8,753 507,850 — 
Total debt securities held-to-maturity$802,712 $1,945 $12,695 $791,962 $136 
(1)Held-to-maturity debt securities are recorded on the consolidated statements of financial condition at amortized cost, net of allowance for credit losses.
Interest income on investment securities
Interest income on investment securities was as follows:
Three Months Ended March 31,
(Dollars in thousands)20222021
Taxable interest income$5,997 $2,429 
Non-taxable interest income22 35 
Dividend income138 182 
Total interest income on investment securities$6,157 $2,646 
Schedule of contractual maturities of debt securities
As of March 31, 2022, the contractual maturities of the debt securities were:
March 31, 2022
Available-for-SaleHeld-to-Maturity
(Dollars in thousands)Amortized
Cost		Estimated
Fair Value		Amortized
Cost		Estimated
Fair Value
Due in less than one year$27,500 $27,498 $410 $410 
Due from one to five years172,225 168,923 35,165 34,882 
Due from five to ten years57,883 56,118 103,627 97,833 
Due after ten years491,027 461,623 668,449 617,492 
Total debt securities$748,635 $714,162 $807,651 $750,617 
Schedule of proceeds and realized gains and losses from investments securities
Proceeds from the sale and call of debt securities available-for-sale and held-to-maturity and related gross realized gains and losses were:
Available-for-SaleHeld-to-Maturity
Three Months Ended March 31,Three Months Ended March 31,
(Dollars in thousands)2022202120222021
Proceeds from sales$— $— $— $— 
Proceeds from calls— 17,311 — 3,555 
Total proceeds$— $17,311 $— $3,555 
Gross realized gains$— $— $— $— 
Gross realized losses— 1 — — 
Net realized gains$— $(1)$— $— 
Schedule of debt securities, held-to-maturity, allowance for credit loss
Changes in the allowance for credit losses on held-to-maturity securities were as follows for the three months ended March 31, 2022 and 2021:

Three Months Ended March 31, 2022
(Dollars in thousands)Corporate
Bonds		Non-agency SecuritizationsMunicipal
Bonds		Agency Debentures and SecuritizationsU.S. Treasury NotesTotal
Balance, beginning of period$71 $65 $— $— $— $136 
Provision (credit) for credit losses(60)(31)— — — (91)
Charge-offs— — — — — — 
Recoveries— — — — — — 
Balance, end of period$11 $34 $— $— $— $45 


Three Months Ended March 31, 2021
(Dollars in thousands)Corporate
Bonds		Non-agency SecuritizationsMunicipal
Bonds		Agency Debentures and SecuritizationsU.S. Treasury NotesTotal
Balance, beginning of period$79 $70 $— $— $— $149 
Provision (credit) for credit losses(24)35 — — — 11 
Charge-offs— — — — — — 
Recoveries— — — — — — 
Balance, end of period$55 $105 $— $— $— $160 
Schedule of fair value and gross unrealized losses on investment equity securities
The following tables show the fair value and gross unrealized losses on debt securities available-for-sale, by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of March 31, 2022 and December 31, 2021:

March 31, 2022
Less than 12 Months12 Months or MoreTotal
(Dollars in thousands)Fair valueUnrealized lossesFair valueUnrealized lossesFair valueUnrealized losses
Debt securities available-for-sale:
U.S. Treasury Notes$96,659 $2,757 $— $— $96,659 $2,757 
Corporate bonds87,923 1,411 18,350 1,208 106,273 2,619 
Trust preferred securities2,064 60 2,289 90 4,353 150 
Non-agency residential mortgage-backed securities266,999 21,953 — — 266,999 21,953 
Agency collateralized mortgage obligations12,984 56 — — 12,984 56 
Agency mortgage-backed securities133,551 10,444 88 1 133,639 10,445 
Municipal bonds4,589 592 — — 4,589 592 
Temporarily impaired debt securities available-for-sale (1)
$604,769 $37,273 $20,727 $1,299 $625,496 $38,572 
(1)The number of investment positions with unrealized losses totaled 72 for available-for-sale securities.
December 31, 2021
Less than 12 Months12 Months or MoreTotal
(Dollars in thousands)Fair valueUnrealized lossesFair valueUnrealized lossesFair valueUnrealized losses
Debt securities available-for-sale:
Corporate bonds$20,191 $118 $11,808 $155 $31,999 $273 
Trust preferred securities2,046 76 2,270 107 4,316 183 
Non-agency mortgage-backed securities277,118 4,164 — — 277,118 4,164 
Agency collateralized mortgage obligations1,600 2 — — 1,600 2 
Agency mortgage-backed securities119,320 1,599 89 — 119,409 1,599 
Municipal bonds5,185 4 — — 5,185 4 
Temporarily impaired debt securities available-for-sale (1)
$425,460 $5,963 $14,167 $262 $439,627 $6,225 
(1)The number of investment positions with unrealized losses totaled 39 for available-for-sale securities.
Schedule of debt securities, held-to-maturity, credit quality indicator
The Company monitors the credit quality of debt securities held-to-maturity including credit ratings quarterly. The following tables present the amortized costs basis of debt securities held-to-maturity by Moody’s bond credit rating.
March 31, 2022
(Dollars in thousands)AaaAaABaaBaTotal
Debt securities held-to-maturity:
Corporate bonds$— $— $— $25,165 $— $25,165 
Agency debentures66,540 — — — — 66,540 
Municipal bonds— — 410 — — 410 
Non-agency residential mortgage-backed securities173,010 — — — — 173,010 
Agency mortgage-backed securities503,406 — — — — 503,406 
U.S. treasury notes39,120 — — — — 39,120 
Total debt securities held-to-maturity$782,076 $— $410 $25,165 $— $807,651 
v3.22.1
LOANS AND LEASES (Tables)
 3 Months Ended
Mar. 31, 2022
Receivables [Abstract]  
Schedule of loans receivable
Loans and leases held-for-investment were comprised of the following:
March 31, 2022
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Loans and leases held-for-investment, before deferred fees and costs$7,253,933 $1,560,668 $2,420,958 $11,235,559 
Net deferred loan costs (fees)14,229 3,641 (6,510)11,360 
Loans and leases held-for-investment, net of deferred fees and costs7,268,162 1,564,309 2,414,448 11,246,919 
Allowance for credit losses on loans and leases(2,060)(5,116)(17,848)(25,024)
Loans and leases held-for-investment, net$7,266,102 $1,559,193 $2,396,600 $11,221,895 
December 31, 2021
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Loans and leases held-for-investment, before deferred fees and costs$6,870,961 $1,509,418 $2,369,335 $10,749,714 
Net deferred loan costs (fees)15,537 4,005 (5,932)13,610 
Loans and leases held-for-investment, net of deferred fees and costs6,886,498 1,513,423 2,363,403 10,763,324 
Allowance for credit losses on loans and leases(1,891)(8,453)(18,219)(28,563)
Loans and leases held-for-investment, net$6,884,607 $1,504,970 $2,345,184 $10,734,761 
v3.22.1
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES (Tables)
 3 Months Ended
Mar. 31, 2022
Allowance for Credit Losses and Leases [Abstract]  
Schedule of loans by credit quality indicator
The following table presents the amortized cost of loans by portfolio, risk rating and year of origination:

As of March 31, 2022
(Dollars in thousands)20222021202020192018Prior
Revolving
Loans (1)
Total
Private Banking:
Pass$535 $20,528 $50,621 $37,485 $39,863 $53,960 $7,065,170 $7,268,162 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total private banking loans535 20,528 50,621 37,485 39,863 53,960 7,065,170 7,268,162 
Commercial and Industrial:
Pass119,481 218,812 133,113 173,683 54,171 62,277 785,537 1,547,074 
Special mention— — 1,203 — — 130 4,000 5,333 
Substandard— — — 1,734 — 604 9,564 11,902 
Doubtful— — — — — — — — 
Total commercial and industrial loans119,481 218,812 134,316 175,417 54,171 63,011 799,101 1,564,309 
Commercial Real Estate:
Pass160,798 581,607 526,695 400,020 288,032 396,281 46,129 2,399,562 
Special mention— 1,796 — — — 370 — 2,166 
Substandard— — 261 5,114 615 6,730 — 12,720 
Doubtful— — — — — — — — 
Total commercial real estate loans160,798 583,403 526,956 405,134 288,647 403,381 46,129 2,414,448 
Loans and leases held-for-investment$280,814 $822,743 $711,893 $618,036 $382,681 $520,352 $7,910,400 $11,246,919 
(1)The Company had no revolving loans which were converted to term loans included in loans and leases held-for-investment as of March 31, 2022.
As of December 31, 2021
(Dollars in thousands)20212020201920182017Prior
Revolving
Loans (1)
Total
Private Banking:
Pass$21,365 $57,722 $29,935 $54,082 $7,121 $50,545 $6,665,728 $6,886,498 
Special mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total private banking loans21,365 57,722 29,935 54,082 7,121 50,545 6,665,728 6,886,498 
Commercial and Industrial:
Pass240,980 156,216 186,879 55,729 39,523 25,328 787,778 1,492,433 
Special mention— 1,353 — — — 138 3,826 5,317 
Substandard— — 1,757 — 578 41 8,984 11,360 
Doubtful— 375 — 3,938 — — — 4,313 
Total commercial and industrial loans240,980 157,944 188,636 59,667 40,101 25,507 800,588 1,513,423 
Commercial Real Estate:
Pass572,630 512,139 454,762 333,477 187,090 251,809 35,617 2,347,524 
Special mention— — — — — 2,288 — 2,288 
Substandard— 261 5,395 621 — 7,314 — 13,591 
Doubtful— — — — — — — — 
Total commercial real estate loans572,630 512,400 460,157 334,098 187,090 261,411 35,617 2,363,403 
Loans and leases held-for-investment$834,975 $728,066 $678,728 $447,847 $234,312 $337,463 $7,501,933 $10,763,324 
(1)The Company had no revolving loans which were converted to term loans included in loans and leases held-for-investment as of December 31, 2021.
Schedule of changes in allowance for loan losses
Changes in the allowance for credit losses on loans and leases were as follows for the three months ended March 31, 2022 and 2021:

Three Months Ended March 31, 2022
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$1,891 $8,453 $18,219 $28,563 
Provision (credit) for credit losses169 975 (490)654 
Charge-offs— (4,312)— (4,312)
Recoveries— — 119 119 
Balance, end of period$2,060 $5,116 $17,848 $25,024 
Three Months Ended March 31, 2021
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Balance, beginning of period$2,047 $5,254 $27,329 $34,630 
Provision (credit) for credit losses(280)3,101 (2,608)213 
Charge-offs— (199)— (199)
Recoveries— — — — 
Balance, end of period$1,767 $8,156 $24,721 $34,644 
Schedule of past due loans by class
The following tables present the age analysis of past due loans and leases segregated by class:
March 31, 2022
(Dollars in thousands)30-59 Days
 Past Due		60-89 Days
 Past Due		90 Days or More Past Due Total Past DueCurrentTotal
Private banking$180 $382 $— $562 $7,267,600 $7,268,162 
Commercial and industrial2,338 — — 2,338 1,561,971 1,564,309 
Commercial real estate615 — — 615 2,413,833 2,414,448 
Loans and leases held-for-investment$3,133 $382 $— $3,515 $11,243,404 $11,246,919 
December 31, 2021
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due90 Days or More Past Due Total Past DueCurrentTotal
Private banking$678 $— $— $678 $6,885,820 $6,886,498 
Commercial and industrial— — 4,313 4,313 1,509,110 1,513,423 
Commercial real estate— — — — 2,363,403 2,363,403 
Loans and leases held-for-investment$678 $— $4,313 $4,991 $10,758,333 $10,763,324 
Schedule of loans considered to be impaired
The following tables present the Company’s amortized cost of individually evaluated loans and related information on those loans as of and for the three months ended March 31, 2022 and as of and for the twelve months ended December 31, 2021:
As of and for the Three Months Ended March 31, 2022
(Dollars in thousands)Amortized
Cost		Unpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
With a related allowance recorded:
Private banking$— $— $— $— $— 
Commercial and industrial11,902 11,907 386 14,802 146 
Commercial real estate615 615 20 617 5 
Total with a related allowance recorded12,517 12,522 406 15,419 151 
Without a related allowance recorded:
Private banking— — — — — 
Commercial and industrial— — — — — 
Commercial real estate— — — — — 
Total without a related allowance recorded— — — — — 
Total:
Private banking— — — — — 
Commercial and industrial11,902 11,907 386 14,802 146 
Commercial real estate615 615 20 617 5 
Total$12,517 $12,522 $406 $15,419 $151 
As of and for the Twelve Months Ended December 31, 2021
(Dollars in thousands)Amortized
Cost		Unpaid Principal BalanceRelated AllowanceAverage Recorded InvestmentInterest Income Recognized
With a related allowance recorded:
Private banking$— $— $— $— $— 
Commercial and industrial15,673 19,989 4,646 19,553 786 
Commercial real estate1,139 1,139 37 1,139 56 
Total with a related allowance recorded16,812 21,128 4,683 20,692 842 
Without a related allowance recorded:
Private banking— — — — — 
Commercial and industrial— — — — — 
Commercial real estate— — — — — 
Total without a related allowance recorded— — — — — 
Total:
Private banking— — — — — 
Commercial and industrial15,673 19,989 4,646 19,553 786 
Commercial real estate1,139 1,139 37 1,139 56 
Total$16,812 $21,128 $4,683 $20,692 $842 
Schedule of allowance for credit losses and investment in loans by class
The following tables present the allowance for credit losses on loans and leases and amortized costs of individually evaluated loans:
March 31, 2022
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Allowance for credit losses on loans and leases:
Individually evaluated for impairment$— $386 $20 $406 
Collectively evaluated for impairment2,060 4,730 17,828 24,618 
Total allowance for credit losses on loans and leases$2,060 $5,116 $17,848 $25,024 
Loans and leases held-for-investment:
Individually evaluated for impairment$— $11,902 $615 $12,517 
Collectively evaluated for impairment7,268,162 1,552,407 2,413,833 11,234,402 
Loans and leases held-for-investment$7,268,162 $1,564,309 $2,414,448 $11,246,919 
December 31, 2021
(Dollars in thousands)Private
Banking		Commercial
and
Industrial		Commercial
Real Estate		Total
Allowance for credit losses on loans and leases:
Individually evaluated for impairment$— $4,646 $37 $4,683 
Collectively evaluated for impairment1,891 3,807 18,182 23,880 
Total allowance for credit losses on loans and leases$1,891 $8,453 $18,219 $28,563 
Loans and leases held-for-investment:
Individually evaluated for impairment$— $15,673 $1,139 $16,812 
Collectively evaluated for impairment6,886,498 1,497,750 2,362,264 10,746,512 
Loans and leases held-for-investment$6,886,498 $1,513,423 $2,363,403 $10,763,324 
Schedule of financial effects of modifications
The financial effects of our modifications made to loans newly designated as TDRs during the three months ended March 31, 2021,
were as follows:

Three Months Ended March 31, 2021
(Dollars in thousands)CountRecorded Investment at the time of ModificationCurrent Recorded InvestmentAllowance for Credit Losses on Loans and Leases at the time of ModificationCurrent Allowance for Credit Losses on Loans and Leases
Commercial Real Estate:
Extended term, deferred principal2$4,454 $4,454 $445 $445 
Total2$4,454 $4,454 $445 $445 
v3.22.1
DEPOSITS (Tables)
 3 Months Ended
Mar. 31, 2022
Deposits [Abstract]  
Schedule of deposits
As of March 31, 2022 and December 31, 2021, deposits were comprised of the following:
Interest Rate
Range		Weighted Average
Interest Rate		Balance
(Dollars in thousands)March 31,
2022		March 31,
2022		December 31,
2021		March 31,
2022		December 31,
2021
Demand and savings accounts:
Noninterest-bearing checking accounts———$790,272 $776,256 
Interest-bearing checking accounts
0.05 to 1.70%
0.54%0.35%4,160,546 4,318,523 
Money market deposit accounts
0.10 to 3.25%
0.55%0.40%6,615,404 5,632,093 
Total demand and savings accounts11,566,222 10,726,872 
Certificates of deposit
0.10 to 2.55%
0.39%0.41%599,254 777,517 
Total deposits$12,165,476 $11,504,389 
Weighted average rate on interest-bearing accounts0.54%0.38%
Schedule of maturities of time deposits
The contractual maturity of certificates of deposit was as follows:
(Dollars in thousands)March 31,
2022		December 31,
2021
12 months or less$540,410 $693,339 
12 months to 24 months52,714 72,735 
24 months to 36 months6,130 11,443 
Total$599,254 $777,517 
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)20222021
Interest-bearing checking accounts$3,707 $2,793 
Money market deposit accounts6,352 5,964 
Certificates of deposit687 1,997 
Total interest expense on deposits$10,746 $10,754 
v3.22.1
BORROWINGS (Tables)
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Schedule of borrowings
As of March 31, 2022 and December 31, 2021, borrowings were comprised of the following:
March 31, 2022December 31, 2021
(Dollars in thousands)Interest RateEnding BalanceMaturity DateInterest RateEnding BalanceMaturity Date
FHLB borrowings:
Issued 3/21/20220.75%$50,000 6/20/2022—%$— 
Issued 3/2/20220.65%50,000 6/2/2022—%— 
Issued 3/1/20220.63%150,000 6/1/2022—%— 
Issued 12/20/2021—%— 0.30%50,000 3/21/2022
Issued 12/2/2021—%— 0.27%50,000 3/2/2022
Issued 12/1/2021—%— 0.27%150,000 3/1/2022
Subordinated notes payable (net of debt issuance costs of $1,738 and $1,792, respectively)
5.75%95,762 5/15/20305.75%95,708 5/15/2030
Senior notes payable (net of debt issuance costs of $500 and $545, respectively)
2.25%124,500 12/15/20242.25%124,455 12/15/2024
Total borrowings, net$470,262 $470,163 
Schedule of interest expense on borrowings
Interest expense on borrowings was as follows:
Three Months Ended March 31,
(Dollars in thousands)20222021
FHLB borrowings$1,026 $1,072 
Line of credit borrowings— 55 
Senior and subordinated notes payable2,204 1,455 
Total interest expense on borrowings$3,230 $2,582 
v3.22.1
STOCK TRANSACTIONS (Tables)
 3 Months Ended
Mar. 31, 2022
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		Number of
Treasury Shares
Balance, December 31, 2021121,433 33,263,498 2,402,033 
Issuance of preferred stock11 — — 
Issuance of restricted common stock— 476,325 — 
Forfeitures of restricted common stock— (14,479)— 
Exercise of stock options— 34,250 — 
Increase in treasury stock related to equity awards— (123,132)123,132 
Balance, March 31, 2022121,444 33,636,462 2,525,165 
Balance, December 31, 2020121,400 32,620,150 2,299,422 
Issuance of preferred stock— — — 
Issuance of common stock— — — 
Issuance of restricted common stock— 585,386 — 
Forfeitures of restricted common stock— (10,547)— 
Exercise of stock options— 39,000 — 
Purchase of treasury stock— — — 
Increase in treasury stock related to equity awards— (73,384)73,384 
Reissuance of treasury stock— — — 
Balance, March 31, 2021121,400 33,160,605 2,372,806 
v3.22.1
REGULATORY CAPITAL (Tables)
 3 Months Ended
Mar. 31, 2022
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, 2022 and December 31, 2021:
March 31, 2022
ActualFor Capital Adequacy PurposesTo be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Total risk-based capital ratio
Company$926,930 13.23 %$560,586 8.00 % N/AN/A
Bank$1,007,981 14.42 %$559,025 8.00 %$698,782 10.00 %
Tier 1 risk-based capital ratio
Company$807,115 11.52 %$420,440 6.00 % N/AN/A
Bank$983,928 14.08 %$419,269 6.00 %$559,025 8.00 %
Common equity tier 1 risk-based capital ratio
Company$624,472 8.91 %$315,330 4.50 % N/AN/A
Bank$983,928 14.08 %$314,452 4.50 %$454,208 6.50 %
Tier 1 leverage ratio
Company$807,115 6.16 %$524,449 4.00 % N/AN/A
Bank$983,928 7.52 %$523,676 4.00 %$654,595 5.00 %
December 31, 2021
ActualFor Capital Adequacy PurposesTo be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)AmountRatioAmountRatioAmountRatio
Total risk-based capital ratio
Company$910,320 13.43 %$542,409 8.00 %N/AN/A
Bank$986,657 14.60 %$540,639 8.00 %$675,798 10.00 %
Tier 1 risk-based capital ratio
Company$788,910 11.64 %$406,807 6.00 %N/AN/A
Bank$960,955 14.22 %$405,479 6.00 %$540,639 8.00 %
Common equity tier 1 risk-based capital ratio
Company$607,367 8.96 %$305,105 4.50 %N/AN/A
Bank$960,955 14.22 %$304,109 4.50 %$439,269 6.50 %
Tier 1 leverage ratio
Company$788,910 6.36 %$496,431 4.00 %N/AN/A
Bank$960,955 7.76 %$495,417 4.00 %$619,271 5.00 %
v3.22.1
EARNINGS PER COMMON SHARE (Tables)
 3 Months Ended
Mar. 31, 2022
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 were as follows:

Three Months Ended March 31,
(Dollars in thousands, except per share data)20222021
Basic earnings per common share:
Net income$21,641 $16,200 
Less: Preferred dividends on Series A and Series B1,962 1,962 
Less: Preferred dividends on Series C1,171 1,097 
Net income available to common shareholders$18,508 $13,141 
Allocation of net income available:
Common shareholders$15,575 $11,127 
Series C convertible preferred shareholders2,480 1,685 
Warrant shareholders453 329 
Total$18,508 $13,141 
Basic weighted average common shares outstanding:
Basic common shares31,699,023 31,224,474 
Series C convertible preferred stock, as-if converted5,047,272 4,727,272 
Warrants, as-if exercised922,438 922,438 
Basic earnings per common share$0.49 $0.36 
Diluted earnings per common share:
Income available to common shareholders after allocation$15,575 $11,127 
Diluted weighted average common shares outstanding:
Basic common shares31,699,023 31,224,474 
Restricted stock - dilutive956,414 801,798 
Stock options - dilutive119,410 160,762 
Diluted common shares32,774,847 32,187,034 
Diluted earnings per common share$0.48 $0.35 
Three Months Ended March 31,
Anti-dilutive shares:20222021
Restricted stock48,147 71,810 
Series C convertible preferred stock, as-if converted5,047,272 4,727,272 
Warrants, as-if exercised922,438 922,438 
Total anti-dilutive shares
6,017,857 5,721,520 
Schedule of antidilutive securities excluded from computation of earnings per share
The computation of basic and diluted earnings per common share for the periods presented were as follows:

Three Months Ended March 31,
(Dollars in thousands, except per share data)20222021
Basic earnings per common share:
Net income$21,641 $16,200 
Less: Preferred dividends on Series A and Series B1,962 1,962 
Less: Preferred dividends on Series C1,171 1,097 
Net income available to common shareholders$18,508 $13,141 
Allocation of net income available:
Common shareholders$15,575 $11,127 
Series C convertible preferred shareholders2,480 1,685 
Warrant shareholders453 329 
Total$18,508 $13,141 
Basic weighted average common shares outstanding:
Basic common shares31,699,023 31,224,474 
Series C convertible preferred stock, as-if converted5,047,272 4,727,272 
Warrants, as-if exercised922,438 922,438 
Basic earnings per common share$0.49 $0.36 
Diluted earnings per common share:
Income available to common shareholders after allocation$15,575 $11,127 
Diluted weighted average common shares outstanding:
Basic common shares31,699,023 31,224,474 
Restricted stock - dilutive956,414 801,798 
Stock options - dilutive119,410 160,762 
Diluted common shares32,774,847 32,187,034 
Diluted earnings per common share$0.48 $0.35 
Three Months Ended March 31,
Anti-dilutive shares:20222021
Restricted stock48,147 71,810 
Series C convertible preferred stock, as-if converted5,047,272 4,727,272 
Warrants, as-if exercised922,438 922,438 
Total anti-dilutive shares
6,017,857 5,721,520 
v3.22.1
DERIVATIVES AND HEDGING ACTIVITY (Tables)
 3 Months Ended
Mar. 31, 2022
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, 2022 and December 31, 2021:
Asset DerivativesLiability Derivatives
as of March 31, 2022as of March 31, 2022
(Dollars in thousands)Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate productsOther assets$5,617 Other liabilities$362 
Derivatives not designated as hedging instruments:
Interest rate productsOther assets97,531 Other liabilities97,439 
TotalOther assets$103,148 Other liabilities$97,801 
Asset DerivativesLiability Derivatives
as of December 31, 2021as of December 31, 2021
(Dollars in thousands)Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate productsOther assets$1,217 Other liabilities$2,838 
Derivatives not designated as hedging instruments:
Interest rate productsOther assets88,956 Other liabilities88,919 
TotalOther assets$90,173 Other liabilities$91,757 
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, 2022 and December 31, 2021:
Offsetting of Derivative Assets
Gross Amounts of Recognized AssetsGross Amounts Offset in the Statement of Financial PositionNet Amounts of Assets
presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial PositionNet Amount
(Dollars in thousands)Financial InstrumentsCash Collateral Received
March 31, 2022$103,148 $— $103,148 $(14,815)$— $88,333 
December 31, 2021$90,173 $— $90,173 $(13,929)$— $76,244 
Schedule of offsetting derivative liabilities
Offsetting of Derivative Liabilities
Gross Amounts of Recognized LiabilitiesGross Amounts Offset in the Statement of Financial PositionNet Amounts of Liabilities
presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial PositionNet Amount
(Dollars in thousands)Financial InstrumentsCash Collateral Posted
March 31, 2022$97,801 $— $97,801 $(14,815)$(3,327)$79,659 
December 31, 2021$91,757 $— $91,757 $(13,929)$(59,898)$17,930 
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, 2022, 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 5/30/2019$50,000 2.05%$130 6/1/20222
Issued 5/30/201950,000 2.03%89 6/1/202314
Issued 5/30/201950,000 2.04%95 6/1/202426
Issued 3/2/202050,000 0.98%(438)3/2/202535
Issued 3/20/202050,000 0.60%(657)3/20/202536
Total$250,000 $(781)
(1)The effective rate is adjusted for the difference between the three-month FHLB advance rate and three-month LIBOR.
Schedule of derivative instruments, gain (loss) in statement of financial performance
The tables below present the effective portion of the Company’s cash flow hedge instruments in the unaudited condensed consolidated statements of income and accumulated other comprehensive income (loss):
Three Months Ended March 31,Three Months Ended March 31,
(Dollars in thousands)2022202120222021
Derivatives designated as hedging instruments:Location of Gain (Loss) Recognized in Income on DerivativesRealized Gain (Loss) Recognized in Income on DerivativesUnrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives
Interest rate productsInterest expense$(778)$(846)$6,026 $2,216 
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)20222021
Derivatives not designated as hedging instruments:Location of Gain (Loss) Recognized in Income on DerivativesAmount of Gain (Loss) Recognized in Income on Derivatives
Interest rate productsNon-interest income$12 $31 
v3.22.1
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2022
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, 2022 and December 31, 2021:
March 31, 2022
(Dollars in thousands)Level 1Level 2Level 3Total Assets /
Liabilities
at Fair Value
Financial assets:
Debt securities available-for-sale:
U.S. treasury notes$96,659 $— $— $96,659 
Corporate bonds$— $151,051 $— $151,051 
Trust preferred securities— 13,603 — 13,603 
Non-agency residential mortgage-backed securities— 288,848 — 288,848 
Agency collateralized mortgage obligations— 15,541 — 15,541 
Agency mortgage-backed securities— 137,034 — 137,034 
Agency debentures— 6,837 — 6,837 
Municipal bonds— 4,589 — 4,589 
Equity securities4,867 — — 4,867 
Interest rate swaps— 103,148 — 103,148 
Total financial assets101,526 720,651 — 822,177 
Financial liabilities:
Interest rate swaps— 97,801 — 97,801 
Total financial liabilities$— $97,801 $— $97,801 
December 31, 2021
(Dollars in thousands)Level 1Level 2Level 3Total Assets /
Liabilities
at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds$— $146,192 $— $146,192 
Trust preferred securities— 13,627 — 13,627 
Non-agency mortgage-backed securities— 277,118 — 277,118 
Agency collateralized mortgage obligations— 16,498 — 16,498 
Agency mortgage-backed securities— 120,477 — 120,477 
Agency debentures— 7,228 — 7,228 
Municipal bonds— 5,185 — 5,185 
Equity securities4,975 — — 4,975 
Interest rate swaps— 90,173 — 90,173 
Total financial assets4,975 676,498 — 681,473 
Financial liabilities:
Interest rate swaps— 91,757 — 91,757 
Total financial liabilities$— $91,757 $— $91,757 
Schedule of fair value measurements, nonrecurring
The following tables represent the balances of assets measured at fair value on a non-recurring basis as of March 31, 2022 and December 31, 2021:
March 31, 2022
(Dollars in thousands)Level 1Level 2Level 3Total Assets
at Fair Value
Loans measured for impairment, net$— $— $12,111 $12,111 
Other real estate owned— — 2,005 2,005 
Total assets$— $— $14,116 $14,116 
December 31, 2021
(Dollars in thousands)Level 1Level 2Level 3Total Assets
at Fair Value
Loans measured for impairment, net$— $— $12,129 $12,129 
Other real estate owned— — 2,005 2,005 
Total assets$— $— $14,134 $14,134 
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, 2022 and December 31, 2021:
March 31, 2022
(Dollars in thousands)Fair Value
Valuation Techniques (1)(2)
Significant Unobservable InputsWeighted Average Discount Rate
Loans measured for impairment, net$12,111 OtherDiscount due to restructured nature of operations3%
Other real estate owned$2,005 CollateralAppraisal value and discount due to salability conditions12%
(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.
(2)The collateral which is used in the valuation of these loans is commercial real estate.
December 31, 2021
(Dollars in thousands)Fair Value
Valuation Techniques (1)(2)
Significant Unobservable InputsWeighted Average
Discount Rate
Loans measured for impairment, net$12,129 OtherDiscount due to restructured nature of operations3%
Other real estate owned$2,005 CollateralAppraisal value and discount due to salability conditions12%
(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.
(2)The collateral which is used in the valuation of these loans is commercial real estate.
Schedule of fair and carrying value of financial assets and liabilities
The following table summarizes the carrying amounts and estimated fair values of financial instruments:
March 31, 2022December 31, 2021
(Dollars in thousands)Fair Value
Level		Carrying
Amount		Estimated
Fair Value		Carrying
Amount		Estimated
Fair Value
Financial assets:
Cash and cash equivalents1$481,874 $481,874 $452,016 $452,016 
Debt securities available-for-sale196,659 96,659 — — 
Debt securities available-for-sale2617,503 617,503 586,325 586,325 
Debt securities held-to-maturity139,120 35,964 39,098 38,666 
Debt securities held-to-maturity2768,486 714,653 763,478 753,296 
Equity securities14,867 4,867 4,975 4,975 
Federal Home Loan Bank stock211,802 11,802 11,802 11,802 
Loans and leases held-for-investment, net311,221,895 11,195,503 10,734,761 10,717,430 
Accrued interest receivable225,891 25,891 25,060 25,060 
Investment management fees receivable, net28,390 8,390 8,641 8,641 
Bank owned life insurance299,535 99,535 98,928 98,928 
Other real estate owned32,005 2,005 2,005 2,005 
Interest rate swaps2103,148 103,148 90,173 90,173 
Financial liabilities:
Deposits2$12,165,476 $12,147,795 $11,504,389 $11,504,856 
Borrowings, net2470,262 469,075 470,163 474,949 
Interest rate swaps297,801 97,801 91,757 91,757 
v3.22.1
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)
 3 Months Ended
Mar. 31, 2022
Equity [Abstract]  
Schedule of changes in accumulated other comprehensive income (loss)
The following tables show the changes in accumulated other comprehensive income (loss) net of tax, for the periods presented:
Three Months Ended March 31,
20222021
(Dollars in thousands)Debt SecuritiesDerivativesTotalDebt SecuritiesDerivativesTotal
Balance, beginning of period$(2,385)$(1,039)$(3,424)$3,834 $(6,531)$(2,697)
Change in unrealized holding gains (losses)(22,822)4,573 (18,249)(954)1,683 729 
Losses (gains) reclassified from other comprehensive income— 591 591 (1)642 641 
Net other comprehensive income (loss)(22,822)5,164 (17,658)(955)2,325 1,370 
Balance, end of period$(25,207)$4,125 $(21,082)$2,879 $(4,206)$(1,327)
v3.22.1
SEGMENTS (Tables)
 3 Months Ended
Mar. 31, 2022
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,
2022		December 31,
2021
Assets:
Bank$13,602,380 $12,926,161 
Investment management82,435 86,563 
Parent and other(7,148)(7,872)
Total assets$13,677,667 $13,004,852 

Three Months Ended March 31, 2022Three Months Ended March 31, 2021
(Dollars in thousands)BankInvestment
Management		Parent
and Other		ConsolidatedBankInvestment
Management		Parent
and Other		Consolidated
Income statement data:
Interest income$67,561 $— $16 $67,577 $51,992 $— $— $51,992 
Interest expense11,776 — 2,200 13,976 11,839 — 1,497 13,336 
Net interest income (loss)55,785 — (2,184)53,601 40,153 — (1,497)38,656 
Provision for credit losses563 — — 563 224 — — 224 
Net interest income (loss) after provision for credit losses55,222 — (2,184)53,038 39,929 — (1,497)38,432 
Non-interest income:
Investment management fees— 9,444 (359)9,085 — 9,234 (234)9,000 
Net gain on the sale and call of debt securities— — — — (1)— — (1)
Other non-interest income (loss)6,167 (31)(124)6,012 4,631 21 — 4,652 
Total non-interest income (loss)6,167 9,413 (483)15,097 4,630 9,255 (234)13,651 
Non-interest expense:
Intangible amortization expense— 478 — 478 — 478 — 478 
Other non-interest expense31,238 8,208 1,261 40,707 22,655 7,442 703 30,800 
Total non-interest expense31,238 8,686 1,261 41,185 22,655 7,920 703 31,278 
Income (loss) before tax30,151 727 (3,928)26,950 21,904 1,335 (2,434)20,805 
Income tax expense (benefit)5,833 199 (723)5,309 4,729 310 (434)4,605 
Net income (loss)$24,318 $528 $(3,205)$21,641 $17,175 $1,025 $(2,000)$16,200 
v3.22.1
BASIS OF INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)
 3 Months Ended
Oct. 20, 2021
USD ($)
Mar. 31, 2022
USD ($)
subsidiary
portfolio
office
Dec. 31, 2021
USD ($)
Significant Accounting Policies [Line Items]      
Number of wholly owned subsidiaries | subsidiary   3  
Past due period for loans (in days)   90 days  
Number of loan portfolios | portfolio   3  
Retained earnings   $ (338,274,000) $ (319,766,000)
Allowance for uncollectible accounts   $ 0 $ 0
Raymond James      
Significant Accounting Policies [Line Items]      
Fair value of total consideration $ 1,100,000,000    
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  
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  
Bank      
Significant Accounting Policies [Line Items]      
Number of wholly owned subsidiaries | subsidiary   2  
Number of representative offices, additional to main office | office   4  
v3.22.1
INVESTMENT SECURITIES - Investment Types (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Debt securities available-for-sale:    
Amortized Cost $ 748,635 $ 590,883
Gross Unrealized Appreciation 4,099 1,667
Gross Unrealized Depreciation 38,572 6,225
Allowance for Credit Losses 0 0
Debt securities available-for-sale, at fair value 714,162 586,325
Debt securities held-to-maturity:    
Amortized Cost 807,651 802,712
Gross Unrealized Appreciation 533 1,945
Gross Unrealized Depreciation 57,567 12,695
Estimated Fair Value 750,617 791,962
Allowance for Credit Losses 45 136
U.S. treasury notes    
Debt securities available-for-sale:    
Amortized Cost 99,416  
Gross Unrealized Appreciation 0  
Gross Unrealized Depreciation 2,757  
Allowance for Credit Losses 0  
Debt securities available-for-sale, at fair value 96,659  
Debt securities held-to-maturity:    
Amortized Cost 39,120 39,097
Gross Unrealized Appreciation 0 12
Gross Unrealized Depreciation 3,156 443
Estimated Fair Value 35,964 38,666
Allowance for Credit Losses 0 0
Corporate bonds    
Debt securities available-for-sale:    
Amortized Cost 153,425 145,568
Gross Unrealized Appreciation 245 897
Gross Unrealized Depreciation 2,619 273
Allowance for Credit Losses 0 0
Debt securities available-for-sale, at fair value 151,051 146,192
Debt securities held-to-maturity:    
Amortized Cost 25,165 25,167
Gross Unrealized Appreciation 226 827
Gross Unrealized Depreciation 110 16
Estimated Fair Value 25,281 25,978
Allowance for Credit Losses 11 71
Non-agency residential mortgage-backed securities    
Debt securities available-for-sale:    
Amortized Cost 307,202 281,282
Gross Unrealized Appreciation 3,599 0
Gross Unrealized Depreciation 21,953 4,164
Allowance for Credit Losses 0 0
Debt securities available-for-sale, at fair value 288,848 277,118
Debt securities held-to-maturity:    
Amortized Cost 173,010 184,731
Gross Unrealized Appreciation 0 1
Gross Unrealized Depreciation 13,683 3,088
Estimated Fair Value 159,327 181,644
Allowance for Credit Losses 34 65
Trust preferred securities    
Debt securities available-for-sale:    
Amortized Cost 13,635 13,610
Gross Unrealized Appreciation 118 200
Gross Unrealized Depreciation 150 183
Allowance for Credit Losses 0 0
Debt securities available-for-sale, at fair value 13,603 13,627
Agency collateralized mortgage obligations    
Debt securities available-for-sale:    
Amortized Cost 15,585 16,458
Gross Unrealized Appreciation 12 42
Gross Unrealized Depreciation 56 2
Allowance for Credit Losses 0 0
Debt securities available-for-sale, at fair value 15,541 16,498
Agency mortgage-backed securities    
Debt securities available-for-sale:    
Amortized Cost 147,458 122,044
Gross Unrealized Appreciation 21 32
Gross Unrealized Depreciation 10,445 1,599
Allowance for Credit Losses 0 0
Debt securities available-for-sale, at fair value 137,034 120,477
Debt securities held-to-maturity:    
Amortized Cost 503,406 516,033
Gross Unrealized Appreciation 176 570
Gross Unrealized Depreciation 37,869 8,753
Estimated Fair Value 465,713 507,850
Allowance for Credit Losses 0 0
Agency debentures    
Debt securities available-for-sale:    
Amortized Cost 6,733 6,732
Gross Unrealized Appreciation 104 496
Gross Unrealized Depreciation 0 0
Allowance for Credit Losses 0 0
Debt securities available-for-sale, at fair value 6,837 7,228
Debt securities held-to-maturity:    
Amortized Cost 66,540 36,794
Gross Unrealized Appreciation 131 534
Gross Unrealized Depreciation 2,749 395
Estimated Fair Value 63,922 36,933
Allowance for Credit Losses 0 0
Municipal bonds    
Debt securities available-for-sale:    
Amortized Cost 5,181 5,189
Gross Unrealized Appreciation 0 0
Gross Unrealized Depreciation 592 4
Allowance for Credit Losses 0 0
Debt securities available-for-sale, at fair value 4,589 5,185
Debt securities held-to-maturity:    
Amortized Cost 410 890
Gross Unrealized Appreciation 0 1
Gross Unrealized Depreciation 0 0
Estimated Fair Value 410 891
Allowance for Credit Losses $ 0 $ 0
v3.22.1
INVESTMENT SECURITIES - Narrative (Details) - USD ($)
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]        
Transfer of debt securities available-for-sale to held-to-maturity $ 0 $ 480,769,000    
Allowance for credit loss 45,000 $ 160,000 $ 136,000 $ 149,000
Accrued interest receivable on debt securities held-to-maturity 1,500,000   1,600,000  
Debt securities trading 0   0  
Equity securities, at fair value 4,867,000   4,975,000  
Federal Home Loan Bank stock 11,802,000   $ 11,802,000  
Total Past Due        
Debt Securities, Available-for-sale [Line Items]        
Allowance for credit loss 0      
Federal Home Loan Bank        
Debt Securities, Available-for-sale [Line Items]        
Debt securities held-to-maturity pledged as collateral $ 27,100,000      
v3.22.1
INVESTMENT SECURITIES - Interest Income on Investment Securities (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract]    
Taxable interest income $ 5,997 $ 2,429
Non-taxable interest income 22 35
Dividend income 138 182
Total interest income on investment securities $ 6,157 $ 2,646
v3.22.1
INVESTMENT SECURITIES - Contractual Maturities (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Available-for-sale Securities, Debt Maturities, Amortized Cost    
Due in less than one year $ 27,500  
Due from one to five years 172,225  
Due from five to ten years 57,883  
Due after ten years 491,027  
Amortized Cost 748,635 $ 590,883
Available-for-sale Securities, Debt Maturities, Estimated Fair Value    
Due in less than one year 27,498  
Due from one to five years 168,923  
Due from five to ten years 56,118  
Due after ten years 461,623  
Estimated Fair Value 714,162 586,325
Held-to-maturity Securities, Debt Maturities, Amortized Cost    
Due in less than one year 410  
Due from one to five years 35,165  
Due from five to ten years 103,627  
Due after ten years 668,449  
Amortized Cost 807,651  
Held-to-maturity Securities, Debt Maturities, Estimated Fair Value    
Due in less than one year 410  
Due from one to five years 34,882  
Due from five to ten years 97,833  
Due after ten years 617,492  
Estimated Fair Value $ 750,617 $ 791,962
v3.22.1
INVESTMENT SECURITIES - Gains and Losses on Sales and Calls of Investment Securities (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract]    
Proceeds from sale of available-for-sale securities $ 0 $ 0
Proceeds from call of available-for-sale securities 0 17,311
Total proceeds from sale and call of available-for-sale securities 0 17,311
Gross realized gains on available-for-sale securities 0 0
Gross realized losses on available-for-sale securities 0 1
Net realized gains on sale and call of available-for-sale securities 0 (1)
Proceeds from sale of held-to-maturity securities 0 0
Proceeds from call of held-to-maturity securities 0 3,555
Total proceeds from sale and call of held-to-maturity securities 0 3,555
Gross realized gains on held-to-maturity securities 0 0
Gross realized losses on held-to-maturity securities 0 0
Net realized gains on sale and call of held-to-maturity securities $ 0 $ 0
v3.22.1
INVESTMENT SECURITIES - Debt Securities, Held-to-maturity, Allowance for Credit Loss (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Debt Securities, Held-to-maturity, Allowance for Credit Loss    
Balance, beginning of period $ 136 $ 149
Provision (credit) for credit losses (91) 11
Charge-offs 0 0
Recoveries 0 0
Balance, end of period 45 160
Corporate bonds    
Debt Securities, Held-to-maturity, Allowance for Credit Loss    
Balance, beginning of period 71 79
Provision (credit) for credit losses (60) (24)
Charge-offs 0 0
Recoveries 0 0
Balance, end of period 11 55
Non-agency residential mortgage-backed securities    
Debt Securities, Held-to-maturity, Allowance for Credit Loss    
Balance, beginning of period 65 70
Provision (credit) for credit losses (31) 35
Charge-offs 0 0
Recoveries 0 0
Balance, end of period 34 105
Municipal bonds    
Debt Securities, Held-to-maturity, Allowance for Credit Loss    
Balance, beginning of period 0 0
Provision (credit) for credit losses 0 0
Charge-offs 0 0
Recoveries 0 0
Balance, end of period 0 0
Agency Debentures and Securitizations    
Debt Securities, Held-to-maturity, Allowance for Credit Loss    
Balance, beginning of period 0 0
Provision (credit) for credit losses 0 0
Charge-offs 0 0
Recoveries 0 0
Balance, end of period 0 0
U.S. treasury notes    
Debt Securities, Held-to-maturity, Allowance for Credit Loss    
Balance, beginning of period 0 0
Provision (credit) for credit losses 0 0
Charge-offs 0 0
Recoveries 0 0
Balance, end of period $ 0 $ 0
v3.22.1
INVESTMENT SECURITIES - Unrealized Losses (Details)
$ in Thousands
Mar. 31, 2022
USD ($)
position
Dec. 31, 2021
USD ($)
position
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months $ 604,769 $ 425,460
12 Months or More 20,727 14,167
Total 625,496 439,627
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 37,273 5,963
12 Months or More 1,299 262
Total $ 38,572 $ 6,225
Available-for-sale, number of positions in an unrealized loss position | position 72 39
Corporate bonds    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months $ 87,923 $ 20,191
12 Months or More 18,350 11,808
Total 106,273 31,999
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 1,411 118
12 Months or More 1,208 155
Total 2,619 273
Trust preferred securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months 2,064 2,046
12 Months or More 2,289 2,270
Total 4,353 4,316
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 60 76
12 Months or More 90 107
Total 150 183
Non-agency residential mortgage-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months 266,999 277,118
12 Months or More 0 0
Total 266,999 277,118
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 21,953 4,164
12 Months or More 0 0
Total 21,953 4,164
Agency collateralized mortgage obligations    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months 12,984 1,600
12 Months or More 0 0
Total 12,984 1,600
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 56 2
12 Months or More 0 0
Total 56 2
Agency mortgage-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months 133,551 119,320
12 Months or More 88 89
Total 133,639 119,409
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 10,444 1,599
12 Months or More 1 0
Total 10,445 1,599
Municipal bonds    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months 4,589 5,185
12 Months or More 0 0
Total 4,589 5,185
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 592 4
12 Months or More 0 0
Total 592 $ 4
U.S. treasury notes    
Debt Securities, Available-for-sale [Line Items]    
Less than 12 Months 96,659  
12 Months or More 0  
Total 96,659  
Unrealized losses, Debt securities available-for-sale    
Less than 12 Months 2,757  
12 Months or More 0  
Total $ 2,757  
v3.22.1
INVESTMENT SECURITIES - Credit Quality Indicator (Details)
$ in Thousands
Mar. 31, 2022
USD ($)
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net $ 807,651
Corporate bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 25,165
Agency debentures  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 66,540
Municipal bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 410
Non-agency residential mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 173,010
Agency mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 503,406
U.S. treasury notes  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 39,120
Aaa  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 782,076
Aaa | Corporate bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Aaa | Agency debentures  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 66,540
Aaa | Municipal bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Aaa | Non-agency residential mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 173,010
Aaa | Agency mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 503,406
Aaa | U.S. treasury notes  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 39,120
Aa  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Aa | Corporate bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Aa | Agency debentures  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Aa | Municipal bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Aa | Non-agency residential mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Aa | Agency mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Aa | U.S. treasury notes  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
A  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 410
A | Corporate bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
A | Agency debentures  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
A | Municipal bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 410
A | Non-agency residential mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
A | Agency mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
A | U.S. treasury notes  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Baa  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 25,165
Baa | Corporate bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 25,165
Baa | Agency debentures  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Baa | Municipal bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Baa | Non-agency residential mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Baa | Agency mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Baa | U.S. treasury notes  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Ba  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Ba | Corporate bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Ba | Agency debentures  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Ba | Municipal bonds  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Ba | Non-agency residential mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Ba | Agency mortgage-backed securities  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net 0
Ba | U.S. treasury notes  
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]  
Debt securities held-to-maturity, at amortized cost, net $ 0
v3.22.1
LOANS AND LEASES - Loans Receivable by Class (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total $ 11,246,919 $ 10,763,324
Allowance for credit losses on loans and leases (25,024) (28,563)
Loans and leases held-for-investment, net 11,221,895 10,734,761
Loans receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and leases held-for-investment, before deferred fees and costs 11,235,559 10,749,714
Net deferred loan costs (fees) 11,360 13,610
Total 11,246,919 10,763,324
Allowance for credit losses on loans and leases (25,024) (28,563)
Loans and leases held-for-investment, net 11,221,895 10,734,761
Private Banking    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total 7,268,162 6,886,498
Allowance for credit losses on loans and leases (2,060) (1,891)
Private Banking | Loans receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and leases held-for-investment, before deferred fees and costs 7,253,933 6,870,961
Net deferred loan costs (fees) 14,229 15,537
Total 7,268,162 6,886,498
Allowance for credit losses on loans and leases (2,060) (1,891)
Loans and leases held-for-investment, net 7,266,102 6,884,607
Commercial and Industrial    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total 1,564,309 1,513,423
Allowance for credit losses on loans and leases (5,116) (8,453)
Commercial and Industrial | Loans receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and leases held-for-investment, before deferred fees and costs 1,560,668 1,509,418
Net deferred loan costs (fees) 3,641 4,005
Total 1,564,309 1,513,423
Allowance for credit losses on loans and leases (5,116) (8,453)
Loans and leases held-for-investment, net 1,559,193 1,504,970
Commercial Real Estate    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total 2,414,448 2,363,403
Allowance for credit losses on loans and leases (17,848) (18,219)
Commercial Real Estate | Loans receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and leases held-for-investment, before deferred fees and costs 2,420,958 2,369,335
Net deferred loan costs (fees) (6,510) (5,932)
Total 2,414,448 2,363,403
Allowance for credit losses on loans and leases (17,848) (18,219)
Loans and leases held-for-investment, net $ 2,396,600 $ 2,345,184
v3.22.1
LOANS AND LEASES - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Unfunded commitments $ 11,540,000   $ 10,740,000
Loans in the process of origination 120,400   162,000
Reserve for losses on unfunded commitments 3,400   2,900
Provision liability (500) $ (500)  
Off-balance sheet, credit loss, liability, credit loss expense 433 433  
Standby letters of credit      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Unfunded commitments 57,300   $ 60,800
Standby letters of credit drawn during period $ 4,200 $ 3  
v3.22.1
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES - Narrative (Details)
 3 Months Ended 12 Months Ended
Mar. 31, 2022
USD ($)
portfolio
Mar. 31, 2021
USD ($)
loan
Dec. 31, 2021
USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]      
Number of loan portfolios | portfolio 3    
Accrued interest receivable $ 22,200,000   $ 21,800,000
Past due period for loans (in days) 90 days    
Evaluated loans $ 12,517,000   16,812,000
Interest income on impaired loans 0   0
Loans 90 days or more past due and still accruing 0   0
Related allowance on impaired loans 406,000   4,683,000
Loans modified through troubled debt restructurings 0    
Unused commitments on TDRs 0   0
Loans modified as TDRs with payment defaults 0 $ 0  
Loan newly designated TRD's | loan   2  
Real estate acquired through foreclosure 2,000,000   2,000,000
Mortgage loans in process of foreclosure $ 0    
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]      
Evaluated loans $ 0   0
Related allowance on impaired loans $ 0   $ 0
Private Banking | Cash and marketable securities collateral risk | Concentration risk, percentage      
Financing Receivable, Credit Quality Indicator [Line Items]      
Percentage of private banking loans secured by cash and marketable securities 99.20%   99.00%
Non-accrual      
Financing Receivable, Credit Quality Indicator [Line Items]      
Loans modified through troubled debt restructurings $ 0   $ 0
v3.22.1
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES - Credit Quality Indicator (Details) - USD ($)
Mar. 31, 2022
Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]    
Total $ 11,246,919,000 $ 10,763,324,000
Revolving loans converted to term loans 0 0
Private Banking    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 535,000 21,365,000
2021 20,528,000 57,722,000
2020 50,621,000 29,935,000
2019 37,485,000 54,082,000
2018 39,863,000 7,121,000
Prior 53,960,000 50,545,000
Revolving Loans 7,065,170,000 6,665,728,000
Total 7,268,162,000 6,886,498,000
Private Banking | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 535,000 21,365,000
2021 20,528,000 57,722,000
2020 50,621,000 29,935,000
2019 37,485,000 54,082,000
2018 39,863,000 7,121,000
Prior 53,960,000 50,545,000
Revolving Loans 7,065,170,000 6,665,728,000
Total 7,268,162,000 6,886,498,000
Private Banking | Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans 0 0
Total 0 0
Private Banking | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans 0 0
Total 0 0
Private Banking | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans 0 0
Total 0 0
Commercial and Industrial    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 119,481,000 240,980,000
2021 218,812,000 157,944,000
2020 134,316,000 188,636,000
2019 175,417,000 59,667,000
2018 54,171,000 40,101,000
Prior 63,011,000 25,507,000
Revolving Loans 799,101,000 800,588,000
Total 1,564,309,000 1,513,423,000
Commercial and Industrial | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 119,481,000 240,980,000
2021 218,812,000 156,216,000
2020 133,113,000 186,879,000
2019 173,683,000 55,729,000
2018 54,171,000 39,523,000
Prior 62,277,000 25,328,000
Revolving Loans 785,537,000 787,778,000
Total 1,547,074,000 1,492,433,000
Commercial and Industrial | Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 1,353,000
2020 1,203,000 0
2019 0 0
2018 0 0
Prior 130,000 138,000
Revolving Loans 4,000,000 3,826,000
Total 5,333,000 5,317,000
Commercial and Industrial | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 1,757,000
2019 1,734,000 0
2018 0 578,000
Prior 604,000 41,000
Revolving Loans 9,564,000 8,984,000
Total 11,902,000 11,360,000
Commercial and Industrial | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 375,000
2020 0 0
2019 0 3,938,000
2018 0 0
Prior 0 0
Revolving Loans 0 0
Total 0 4,313,000
Commercial Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 160,798,000 572,630,000
2021 583,403,000 512,400,000
2020 526,956,000 460,157,000
2019 405,134,000 334,098,000
2018 288,647,000 187,090,000
Prior 403,381,000 261,411,000
Revolving Loans 46,129,000 35,617,000
Total 2,414,448,000 2,363,403,000
Commercial Real Estate | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 160,798,000 572,630,000
2021 581,607,000 512,139,000
2020 526,695,000 454,762,000
2019 400,020,000 333,477,000
2018 288,032,000 187,090,000
Prior 396,281,000 251,809,000
Revolving Loans 46,129,000 35,617,000
Total 2,399,562,000 2,347,524,000
Commercial Real Estate | Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 1,796,000 0
2020 0 0
2019 0 0
2018 0 0
Prior 370,000 2,288,000
Revolving Loans 0 0
Total 2,166,000 2,288,000
Commercial Real Estate | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 261,000
2020 261,000 5,395,000
2019 5,114,000 621,000
2018 615,000 0
Prior 6,730,000 7,314,000
Revolving Loans 0 0
Total 12,720,000 13,591,000
Commercial Real Estate | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans 0 0
Total 0 0
Loans And Leases Held-For-Investment    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 280,814,000 834,975,000
2021 822,743,000 728,066,000
2020 711,893,000 678,728,000
2019 618,036,000 447,847,000
2018 382,681,000 234,312,000
Prior 520,352,000 337,463,000
Revolving Loans 7,910,400,000 7,501,933,000
Total $ 11,246,919,000 $ 10,763,324,000
v3.22.1
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES - Changes in Allowance (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Allowance for Loan and Lease Losses    
Balance, beginning of period $ 28,563 $ 34,630
Provision (credit) for credit losses 654 213
Charge-offs (4,312) (199)
Recoveries 119 0
Balance, end of period 25,024 34,644
Private Banking    
Allowance for Loan and Lease Losses    
Balance, beginning of period 1,891 2,047
Provision (credit) for credit losses 169 (280)
Charge-offs 0 0
Recoveries 0 0
Balance, end of period 2,060 1,767
Commercial and Industrial    
Allowance for Loan and Lease Losses    
Balance, beginning of period 8,453 5,254
Provision (credit) for credit losses 975 3,101
Charge-offs (4,312) (199)
Recoveries 0 0
Balance, end of period 5,116 8,156
Commercial Real Estate    
Allowance for Loan and Lease Losses    
Balance, beginning of period 18,219 27,329
Provision (credit) for credit losses (490) (2,608)
Charge-offs 0 0
Recoveries 119 0
Balance, end of period $ 17,848 $ 24,721
v3.22.1
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES - Analysis of Past Due Loans (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment $ 11,246,919 $ 10,763,324
Total Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 3,515 4,991
30-59 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 3,133 678
60-89 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 382 0
90 Days or More Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 0 4,313
Current    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 11,243,404 10,758,333
Private Banking    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 7,268,162 6,886,498
Private Banking | Total Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 562 678
Private Banking | 30-59 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 180 678
Private Banking | 60-89 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 382 0
Private Banking | 90 Days or More Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 0 0
Private Banking | Current    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 7,267,600 6,885,820
Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 1,564,309 1,513,423
Commercial and Industrial | Total Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 2,338 4,313
Commercial and Industrial | 30-59 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 2,338 0
Commercial and Industrial | 60-89 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 0 0
Commercial and Industrial | 90 Days or More Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 0 4,313
Commercial and Industrial | Current    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 1,561,971 1,509,110
Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 2,414,448 2,363,403
Commercial Real Estate | Total Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 615 0
Commercial Real Estate | 30-59 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 615 0
Commercial Real Estate | 60-89 Days Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 0 0
Commercial Real Estate | 90 Days or More Past Due    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment 0 0
Commercial Real Estate | Current    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Loans and leases held-for-investment $ 2,413,833 $ 2,363,403
v3.22.1
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES - Impaired Loans (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Amortized Cost    
With a related allowance $ 12,517 $ 16,812
Without a related allowance 0 0
Total 12,517 16,812
Unpaid Principal Balance    
With a related allowance 12,522 21,128
Without a related allowance 0 0
Total 12,522 21,128
Related Allowance 406 4,683
Average Recorded Investment    
With a related allowance 15,419 20,692
Without a related allowance 0 0
Total 15,419 20,692
Interest Income Recognized    
With a related allowance 151 842
Without a related allowance 0 0
Total 151 842
Private banking    
Amortized Cost    
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 and industrial    
Amortized Cost    
With a related allowance 11,902 15,673
Without a related allowance 0 0
Total 11,902 15,673
Unpaid Principal Balance    
With a related allowance 11,907 19,989
Without a related allowance 0 0
Total 11,907 19,989
Related Allowance 386 4,646
Average Recorded Investment    
With a related allowance 14,802 19,553
Without a related allowance 0 0
Total 14,802 19,553
Interest Income Recognized    
With a related allowance 146 786
Without a related allowance 0 0
Total 146 786
Commercial real estate    
Amortized Cost    
With a related allowance 615 1,139
Without a related allowance 0 0
Total 615 1,139
Unpaid Principal Balance    
With a related allowance 615 1,139
Without a related allowance 0 0
Total 615 1,139
Related Allowance 20 37
Average Recorded Investment    
With a related allowance 617 1,139
Without a related allowance 0 0
Total 617 1,139
Interest Income Recognized    
With a related allowance 5 56
Without a related allowance 0 0
Total $ 5 $ 56
v3.22.1
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES - Allowance (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]    
Individually evaluated for impairment $ 406 $ 4,683
Collectively evaluated for impairment 24,618 23,880
Total allowance for credit losses on loans and leases 25,024 28,563
Loans and leases held-for-investment:    
Individually evaluated for impairment 12,517 16,812
Collectively evaluated for impairment 11,234,402 10,746,512
Total 11,246,919 10,763,324
Private Banking    
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]    
Individually evaluated for impairment 0 0
Collectively evaluated for impairment 2,060 1,891
Total allowance for credit losses on loans and leases 2,060 1,891
Loans and leases held-for-investment:    
Individually evaluated for impairment 0 0
Collectively evaluated for impairment 7,268,162 6,886,498
Total 7,268,162 6,886,498
Commercial and Industrial    
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]    
Individually evaluated for impairment 386 4,646
Collectively evaluated for impairment 4,730 3,807
Total allowance for credit losses on loans and leases 5,116 8,453
Loans and leases held-for-investment:    
Individually evaluated for impairment 11,902 15,673
Collectively evaluated for impairment 1,552,407 1,497,750
Total 1,564,309 1,513,423
Commercial Real Estate    
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]    
Individually evaluated for impairment 20 37
Collectively evaluated for impairment 17,828 18,182
Total allowance for credit losses on loans and leases 17,848 18,219
Loans and leases held-for-investment:    
Individually evaluated for impairment 615 1,139
Collectively evaluated for impairment 2,413,833 2,362,264
Total $ 2,414,448 $ 2,363,403
v3.22.1
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES- Troubled Debt Restructuring (Details) - USD ($)
Mar. 31, 2022
Dec. 31, 2021
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Loans modified through troubled debt restructurings $ 0  
Loans an amortized cost 3,000,000  
Non-accrual    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Loans modified through troubled debt restructurings 0 $ 0
Accrual    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Loans modified through troubled debt restructurings $ 12,500,000  
v3.22.1
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES - Modifications (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
USD ($)
loan
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Count | loan 2
Recorded Investment at the time of Modification $ 4,454
Current Recorded Investment 4,454
Allowance for Credit Losses on Loans and Leases at the time of Modification 445
Current Allowance for Credit Losses on Loans and Leases $ 445
Commercial real estate | Extended Term and Deferred Principal  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
Count | loan 2
Recorded Investment at the time of Modification $ 4,454
Current Recorded Investment 4,454
Allowance for Credit Losses on Loans and Leases at the time of Modification 445
Current Allowance for Credit Losses on Loans and Leases $ 445
v3.22.1
DEPOSITS - Schedule of Deposits by Type (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Interest Rate Range Domestic Deposit Liabilities [Abstract]    
Interest-bearing checking accounts, interest rate minimum 0.05%  
Interest-bearing checking accounts, interest rate maximum 1.70%  
Money market deposit accounts, interest rate minimum 0.10%  
Money market deposit accounts, interest rate maximum 3.25%  
Certificates of deposit, interest rate minimum 0.10%  
Certificates of deposit, interest rate maximum 2.55%  
Weighted Average Interest Rate    
Interest-bearing checking accounts 0.54% 0.35%
Money market deposit accounts 0.55% 0.40%
Certificates of deposit 0.39% 0.41%
Weighted average rate on interest-bearing accounts 0.54% 0.38%
Demand and savings accounts:    
Noninterest-bearing checking accounts $ 790,272 $ 776,256
Interest-bearing checking accounts 4,160,546 4,318,523
Money market deposit accounts 6,615,404 5,632,093
Total demand and savings accounts 11,566,222 10,726,872
Certificates of deposit 599,254 777,517
Total deposits $ 12,165,476 $ 11,504,389
v3.22.1
DEPOSITS - Narrative (Details) - USD ($)
$ in Millions
Mar. 31, 2022
Dec. 31, 2021
Deposits [Abstract]    
Brokered deposits $ 1,210.0 $ 955.5
Reciprocal non-brokered 1,850.0 2,060.0
Certificates of deposit, $100,000 or more, excluding brokered and reciprocal 453.4 477.0
Certificates of deposit, $250,000 or more, excluding brokered and reciprocal $ 125.3 $ 126.4
v3.22.1
DEPOSITS - Contractual Maturities of Time Deposits (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Time Deposits, Rolling Year Maturity [Abstract]    
12 months or less $ 540,410 $ 693,339
12 months to 24 months 52,714 72,735
24 months to 36 months 6,130 11,443
Total $ 599,254 $ 777,517
v3.22.1
DEPOSITS - Interest Expense on Deposits by Type (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Deposits [Abstract]    
Interest-bearing checking accounts $ 3,707 $ 2,793
Money market deposit accounts 6,352 5,964
Certificates of deposit 687 1,997
Total interest expense on deposits $ 10,746 $ 10,754
v3.22.1
BORROWINGS - Schedule of Borrowings (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]      
Total borrowings, net $ 470,262 $ 470,163  
Issued 3/21/2022 | Federal Home Loan Bank advances      
Debt Instrument [Line Items]      
Short term debt interest rate 0.75% 0.00%  
Short-term debt $ 50,000    
Issued 3/2/2022 | Federal Home Loan Bank advances      
Debt Instrument [Line Items]      
Short term debt interest rate 0.65% 0.00%  
Short-term debt $ 50,000    
Issued 3/1/2022 | Federal Home Loan Bank advances      
Debt Instrument [Line Items]      
Short term debt interest rate 0.63% 0.00%  
Short-term debt $ 150,000    
Issued 12/20/2021 | Federal Home Loan Bank advances      
Debt Instrument [Line Items]      
Short term debt interest rate 0.00% 0.30%  
Short-term debt   $ 50,000  
Issued 12/2/2021 | Federal Home Loan Bank advances      
Debt Instrument [Line Items]      
Short term debt interest rate 0.00% 0.27%  
Short-term debt   $ 50,000  
Issued 12/1/2021 | Federal Home Loan Bank advances      
Debt Instrument [Line Items]      
Short term debt interest rate 0.00% 0.27%  
Short-term debt   $ 150,000  
Subordinated Notes Payable 5.75 Percent | Senior and subordinated notes payable      
Debt Instrument [Line Items]      
Long term debt interest rate 5.75% 5.75% 5.75%
Long-term debt $ 95,762 $ 95,708  
Debt issuance costs $ 1,738 $ 1,792  
Senior Notes Payable | Senior Notes      
Debt Instrument [Line Items]      
Long term debt interest rate 2.25% 2.25%  
Long-term debt $ 124,500 $ 124,455  
Debt issuance costs $ 500 $ 545  
v3.22.1
BORROWINGS - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 15, 2021
Dec. 31, 2020
Mar. 31, 2022
Dec. 31, 2021
Aug. 31, 2021
Bank subsidiary | Federal Home Loan Bank advances          
Short-term Debt [Line Items]          
Short-term debt     $ 250,000,000 $ 250,000,000  
Bank subsidiary | Federal Home Loan Bank          
Short-term Debt [Line Items]          
Pledged loans receivable, for Federal Home Loan Bank     1,520,000,000    
Bank subsidiary | Federal Home Loan Bank | Line of credit borrowings          
Short-term Debt [Line Items]          
Line of credit facility, current borrowing capacity     1,090,000,000.00    
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 0  
Line of credit outstanding     0 $ 0  
Bank subsidiary | PNC Bank | Financial Guarantee          
Short-term Debt [Line Items]          
Credit cards issued, notional amount     3,400,000    
Standby letter of credit         $ 643,000
Bank subsidiary | PNC Bank | Line of credit borrowings          
Short-term Debt [Line Items]          
Line of credit facility, current borrowing capacity     8,000,000    
Bank subsidiary | The Huntington National Bank | Line of credit borrowings          
Short-term Debt [Line Items]          
Line of credit facility, current borrowing capacity     $ 75,000,000    
Senior and subordinated notes payable | Subordinated Notes Payable 5.75 Percent          
Short-term Debt [Line Items]          
Net proceeds from issuance of subordinated notes payable   $ 97,500,000      
Debt term   10 years      
Long term debt interest rate   5.75% 5.75% 5.75%  
Unsecured Debt | Senior Notes          
Short-term Debt [Line Items]          
Debt instrument, face amount $ 125,000,000        
Interest rate 2.25%        
Redemption price, percentage 100.00% 100.00%      
v3.22.1
BORROWINGS - Interest Expense on Borrowings by Type (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Debt Instrument [Line Items]    
Interest expense on borrowings $ 3,230 $ 2,582
Senior and subordinated notes payable    
Debt Instrument [Line Items]    
Interest expense on borrowings 2,204 1,455
FHLB borrowings    
Debt Instrument [Line Items]    
Interest expense on borrowings 1,026 1,072
Line of credit borrowings    
Debt Instrument [Line Items]    
Interest expense on borrowings $ 0 $ 55
v3.22.1
STOCK TRANSACTIONS - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Class of Stock [Line Items]    
Dividends paid $ 2,033 $ 1,959
Shares repurchased (in shares) 123,132 73,384
Treasury stock, acquired cost $ 4,000 $ 1,500
Common Stock | Share repurchase program    
Class of Stock [Line Items]    
Stock repurchase program, remaining authorized repurchase amount $ 7,300  
Series C preferred stock    
Class of Stock [Line Items]    
Stock dividends (in shares) 11  
Series A Non-Cumulative Perpetual Stock    
Class of Stock [Line Items]    
Dividends paid $ 2,000 $ 2,000
Fixed-to-floating rate 6.75% 6.75%
Series B Non-Cumulative Perpetual Preferred Stock    
Class of Stock [Line Items]    
Fixed-to-floating rate 6.375% 6.375%
v3.22.1
STOCK TRANSACTIONS - Shares Outstanding Activity (Details) - shares
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Number of Shares Outstanding [Rollforward]    
Shares repurchased (in shares) 123,132 73,384
Preferred Shares    
Number of Shares Outstanding [Rollforward]    
Balance, beginning of period (in shares) 121,433 121,400
Issuance of preferred stock (in shares) 11 0
Balance, ending of period (in shares) 121,444 121,400
Common Stock    
Number of Shares Outstanding [Rollforward]    
Balance, beginning of period (in shares) 33,263,498 32,620,150
Issuance of preferred stock (in shares)   0
Issuance of restricted common stock (in shares) 476,325 585,386
Forfeitures of restricted common stock (in shares) (14,479) (10,547)
Exercise of stock options (in shares) 34,250 39,000
Shares repurchased (in shares)   0
Increase in treasury stock related to equity awards (in shares) (123,132) (73,384)
Reissuance of treasury stock   0
Balance, ending of period (in shares) 33,636,462 33,160,605
Treasury Stock    
Number of Shares Outstanding [Rollforward]    
Balance, beginning of period (in shares) 2,402,033 2,299,422
Shares repurchased (in shares)   0
Increase in treasury stock related to equity awards (in shares) 123,132 73,384
Reissuance of treasury stock   0
Balance, ending of period (in shares) 2,525,165 2,372,806
v3.22.1
REGULATORY CAPITAL - Narrative (Details)
 3 Months Ended
Mar. 31, 2022
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]  
Percentage conservation buffer required for capital adequacy to risk weighted assets, fully phased-in 2.50%
v3.22.1
REGULATORY CAPITAL - Regulatory Capital Requirements (Details)
$ in Thousands
Mar. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Total risk-based capital (Amount)    
Total risk-based capital $ 926,930 $ 910,320
Total risk-based capital required for capital adequacy $ 560,586 $ 542,409
Total risk-based capital (Ratio)    
Total risk-based capital, ratio 0.1323 0.1343
Total risk-based capital required for capital adequacy, ratio 0.0800 0.0800
Tier 1 risk-based capital (Amount)    
Tier 1 risk-based capital $ 807,115 $ 788,910
Tier 1 risk-based capital required for capital adequacy $ 420,440 $ 406,807
Tier 1 risk-based capital (Ratio)    
Tier 1 risk-based capital, ratio 0.1152 0.1164
Tier 1 risk-based capital required for capital adequacy, ratio 0.0600 0.0600
Common Equity Tier One Risk Based Capital (Amount)    
Common equity tier 1 risk-based capital $ 624,472 $ 607,367
Common equity tier 1 risk-based capital required for capital adequacy $ 315,330 $ 305,105
Common Equity Tier One Risk Based Capital (Ratio)    
Common equity tier 1 risk-based capital, ratio 0.0891 0.0896
Common equity tier 1 risk-based capital required for capital adequacy, ratio 4.50% 4.50%
Tier 1 leverage (Amount)    
Tier 1 leverage capital $ 807,115 $ 788,910
Tier 1 leverage capital required for capital adequacy $ 524,449 $ 496,431
Tier 1 leverage (Ratio)    
Tier 1 leverage capital, ratio 0.0616 0.0636
Tier 1 leverage capital required for capital adequacy, ratio 0.0400 0.0400
Bank subsidiary    
Total risk-based capital (Amount)    
Total risk-based capital $ 1,007,981 $ 986,657
Total risk-based capital required for capital adequacy 559,025 540,639
Total risk-based capital required to be well capitalized $ 698,782 $ 675,798
Total risk-based capital (Ratio)    
Total risk-based capital, ratio 0.1442 0.1460
Total risk-based capital required for capital adequacy, ratio 0.0800 0.0800
Total risk-based capital required to be well capitalized, ratio 0.1000 0.1000
Tier 1 risk-based capital (Amount)    
Tier 1 risk-based capital $ 983,928 $ 960,955
Tier 1 risk-based capital required for capital adequacy 419,269 405,479
Tier 1 risk-based capital required to be well capitalized $ 559,025 $ 540,639
Tier 1 risk-based capital (Ratio)    
Tier 1 risk-based capital, ratio 0.1408 0.1422
Tier 1 risk-based capital required for capital adequacy, ratio 0.0600 0.0600
Tier 1 risk-based capital required to be well capitalized, ratio 0.0800 0.0800
Common Equity Tier One Risk Based Capital (Amount)    
Common equity tier 1 risk-based capital $ 983,928 $ 960,955
Common equity tier 1 risk-based capital required for capital adequacy 314,452 304,109
Common equity tier 1 risk-based capital required to be well capitalized $ 454,208 $ 439,269
Common Equity Tier One Risk Based Capital (Ratio)    
Common equity tier 1 risk-based capital, ratio 0.1408 0.1422
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 $ 983,928 $ 960,955
Tier 1 leverage capital required for capital adequacy 523,676 495,417
Tier 1 leverage capital required to be well capitalized $ 654,595 $ 619,271
Tier 1 leverage (Ratio)    
Tier 1 leverage capital, ratio 0.0752 0.0776
Tier 1 leverage capital required for capital adequacy, ratio 0.0400 0.0400
Tier 1 leverage capital required to be well capitalized, ratio 0.0500 0.0500
v3.22.1
EARNINGS PER COMMON SHARE - Schedule of Earnings Per Common Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]    
Net income $ 21,641 $ 16,200
Preferred stock dividends 3,133 3,059
Net income available to common shareholders 18,508 13,141
Allocation of net income available:    
Common shareholders 15,575 11,127
Series C convertible preferred shareholders 2,480 1,685
Warrant shareholders $ 453 $ 329
Basic weighted average common shares outstanding:    
Basic weighted average common shares outstanding (in shares) 31,699,023 31,224,474
Series C convertible preferred stock, as-if converted (in shares) 5,047,272 4,727,272
Warrants, as-if exercised (in shares) 922,438 922,438
Basic (in dollars per share) $ 0.49 $ 0.36
Diluted earnings per common share:    
Income available to common shareholders after allocation $ 15,575 $ 11,127
Basic common shares (in shares) 31,699,023 31,224,474
Restricted stock - dilutive (in shares) 956,414 801,798
Stock options - dilutive (in shares) 119,410 160,762
Diluted weighted average common shares outstanding (in shares) 32,774,847 32,187,034
Diluted (in dollars per share) $ 0.48 $ 0.35
Series A and B Preferred Stock    
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]    
Preferred stock dividends $ 1,962 $ 1,962
Series C preferred stock    
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]    
Preferred stock dividends $ 1,171 $ 1,097
v3.22.1
EARNINGS PER COMMON SHARE - Anti-Dilutive Shares (Details) - shares
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive shares (in shares) 6,017,857 5,721,520
Restricted stock    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive shares (in shares) 48,147 71,810
Series C preferred stock    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive shares (in shares) 5,047,272 4,727,272
Warrants, as-if exercised    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive shares (in shares) 922,438 922,438
v3.22.1
DERIVATIVES AND HEDGING ACTIVITY - Financial Position, Fair Value (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Derivatives, Fair Value [Line Items]    
Asset derivatives, fair value $ 103,148 $ 90,173
Liability derivatives, fair value 97,801 91,757
Other assets    
Derivatives, Fair Value [Line Items]    
Asset derivatives, fair value 103,148 90,173
Other liabilities    
Derivatives, Fair Value [Line Items]    
Liability derivatives, fair value 97,801 91,757
Designated as hedging instrument | Other assets | Interest rate swaps    
Derivatives, Fair Value [Line Items]    
Asset derivatives, fair value 5,617 1,217
Designated as hedging instrument | Other liabilities | Interest rate swaps    
Derivatives, Fair Value [Line Items]    
Liability derivatives, fair value 362 2,838
Not designated as hedging instrument | Other assets | Interest rate swaps    
Derivatives, Fair Value [Line Items]    
Asset derivatives, fair value 97,531 88,956
Not designated as hedging instrument | Other liabilities | Interest rate swaps    
Derivatives, Fair Value [Line Items]    
Liability derivatives, fair value $ 97,439 $ 88,919
v3.22.1
DERIVATIVES AND HEDGING ACTIVITY - Offsetting of Derivative Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross Amounts of Recognized Assets $ 103,148 $ 90,173
Gross Amounts Offset in the Statement of Financial Position 0 0
Net Amounts of Assets presented in the Statement of Financial Position 103,148 90,173
Financial Instruments (14,815) (13,929)
Cash Collateral Received 0 0
Net Amount $ 88,333 $ 76,244
v3.22.1
DERIVATIVES AND HEDGING ACTIVITY - Offsetting of Derivative Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Gross Amounts of Recognized Liabilities $ 97,801 $ 91,757
Gross Amounts Offset in the Statement of Financial Position 0 0
Net Amounts of Liabilities presented in the Statement of Financial Position 97,801 91,757
Financial Instruments (14,815) (13,929)
Cash Collateral Posted (3,327) (59,898)
Net Amount $ 79,659 $ 17,930
v3.22.1
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, 2022
USD ($)
Derivative [Line Items]  
Notional Amount $ 250,000
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months (781)
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 $ 130
Remaining Term (in Months) 2 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 $ 89
Remaining Term (in Months) 14 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 $ 95
Remaining Term (in Months) 26 months
Issued 3/2/2020, 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 $ (438)
Remaining Term (in Months) 35 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 $ (657)
Remaining Term (in Months) 36 months
v3.22.1
DERIVATIVES AND HEDGING ACTIVITY - Gain (Loss) in Statement of Financial Performance (Details) - Interest rate swaps - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Not designated as hedging instrument | Non-interest income    
Derivatives, Fair Value [Line Items]    
Amount of Gain (Loss) Recognized in Income on Derivatives $ 12 $ 31
Cash flow hedging | Designated as hedging instrument | Interest expense    
Derivatives, Fair Value [Line Items]    
Amount of Gain (Loss) Recognized in Income on Derivatives (778) (846)
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives $ 6,026 $ 2,216
v3.22.1
DERIVATIVES AND HEDGING ACTIVITY - Narrative (Details) - Interest rate swaps
$ in Millions
Mar. 31, 2022
USD ($)
Derivatives, Fair Value [Line Items]  
Termination value of derivatives, including accrued interest, in a net liability position $ 3.3
Collateral already posted amount 4.9
Not designated as hedging instrument  
Derivatives, Fair Value [Line Items]  
Derivative, aggregate notional amount $ 4,990.0
v3.22.1
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Financial assets:    
Debt securities available-for-sale $ 714,162 $ 586,325
Equity securities 4,867 4,975
Level 1    
Financial assets:    
Debt securities available-for-sale 96,659 0
Equity securities 4,867 4,975
Level 2    
Financial assets:    
Debt securities available-for-sale 617,503 586,325
Fair value, measurements, recurring    
Financial assets:    
Equity securities 4,867 4,975
Total assets 822,177 681,473
Financial liabilities:    
Total financial liabilities 97,801 91,757
Fair value, measurements, recurring | Level 1    
Financial assets:    
Equity securities 4,867 4,975
Total assets 101,526 4,975
Financial liabilities:    
Total financial liabilities 0 0
Fair value, measurements, recurring | Level 2    
Financial assets:    
Equity securities 0 0
Total assets 720,651 676,498
Financial liabilities:    
Total financial liabilities 97,801 91,757
Fair value, measurements, recurring | Level 3    
Financial assets:    
Equity securities 0 0
Total assets 0 0
Financial liabilities:    
Total financial liabilities 0 0
Fair value, measurements, recurring | Interest rate swaps    
Financial assets:    
Interest rate swaps 103,148 90,173
Financial liabilities:    
Interest rate swaps 97,801 91,757
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 103,148 90,173
Financial liabilities:    
Interest rate swaps 97,801 91,757
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 | U.S. treasury notes    
Financial assets:    
Debt securities available-for-sale 96,659  
Fair value, measurements, recurring | U.S. treasury notes | Level 1    
Financial assets:    
Debt securities available-for-sale 96,659  
Fair value, measurements, recurring | U.S. treasury notes | Level 2    
Financial assets:    
Debt securities available-for-sale 0  
Fair value, measurements, recurring | U.S. treasury notes | Level 3    
Financial assets:    
Debt securities available-for-sale 0  
Fair value, measurements, recurring | Corporate bonds    
Financial assets:    
Debt securities available-for-sale 151,051 146,192
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 151,051 146,192
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 13,603 13,627
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 13,603 13,627
Fair value, measurements, recurring | Trust preferred securities | Level 3    
Financial assets:    
Debt securities available-for-sale 0 0
Fair value, measurements, recurring | Non-agency residential mortgage-backed securities    
Financial assets:    
Debt securities available-for-sale 288,848 277,118
Fair value, measurements, recurring | Non-agency residential mortgage-backed securities | Level 1    
Financial assets:    
Debt securities available-for-sale 0 0
Fair value, measurements, recurring | Non-agency residential mortgage-backed securities | Level 2    
Financial assets:    
Debt securities available-for-sale 288,848 277,118
Fair value, measurements, recurring | Non-agency residential mortgage-backed 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 15,541 16,498
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 15,541 16,498
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 137,034 120,477
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 137,034 120,477
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 6,837 7,228
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 6,837 7,228
Fair value, measurements, recurring | Agency debentures | Level 3    
Financial assets:    
Debt securities available-for-sale 0 0
Fair value, measurements, recurring | Municipal bonds    
Financial assets:    
Debt securities available-for-sale 4,589 5,185
Fair value, measurements, recurring | Municipal bonds | Level 1    
Financial assets:    
Debt securities available-for-sale 0 0
Fair value, measurements, recurring | Municipal bonds | Level 2    
Financial assets:    
Debt securities available-for-sale 4,589 5,185
Fair value, measurements, recurring | Municipal bonds | Level 3    
Financial assets:    
Debt securities available-for-sale $ 0 $ 0
v3.22.1
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value Measurements, Nonrecurring (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Level 3    
Financial assets:    
Other real estate owned $ 2,005 $ 2,005
Fair value, measurements, nonrecurring    
Financial assets:    
Loans measured for impairment, net 12,111 12,129
Other real estate owned 2,005 2,005
Total assets 14,116 14,134
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 12,111 12,129
Other real estate owned 2,005 2,005
Total assets $ 14,116 $ 14,134
v3.22.1
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Fair Value Disclosures [Abstract]    
Specific allowance for loan losses $ 406 $ 4,683
v3.22.1
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value Inputs, Assets, Quantitative Information (Details) - Other - Level 3
$ in Thousands
Mar. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Loans measured for impairment, net    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value $ 12,111 $ 12,129
Loans measured for impairment, net | Discount due to restructured nature of operations    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average Discount Rate 0.03 0.03
Other real estate owned    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value $ 2,005 $ 2,005
Other real estate owned | Discount due to restructured nature of operations    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Other real estate owned 0.12 0.12
v3.22.1
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS - Financial Assets and Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2022
Dec. 31, 2021
Financial assets:    
Debt securities available-for-sale $ 714,162 $ 586,325
Debt securities held-to-maturity 750,617 791,962
Equity securities 4,867 4,975
Investment management fees receivable, net 8,390 8,641
Interest rate swaps 103,148 90,173
Financial liabilities:    
Interest rate swaps 97,801 91,757
Level 1    
Financial assets:    
Cash and cash equivalents 481,874 452,016
Debt securities available-for-sale 96,659 0
Debt securities held-to-maturity 35,964 38,666
Equity securities 4,867 4,975
Level 2    
Financial assets:    
Debt securities available-for-sale 617,503 586,325
Debt securities held-to-maturity 714,653 753,296
Federal Home Loan Bank stock 11,802 11,802
Accrued interest receivable 25,891 25,060
Investment management fees receivable, net 8,390 8,641
Bank owned life insurance 99,535 98,928
Financial liabilities:    
Deposits 12,147,795 11,504,856
Borrowings, net 469,075 474,949
Level 2 | Interest rate swaps    
Financial assets:    
Interest rate swaps 103,148 90,173
Financial liabilities:    
Interest rate swaps 97,801 91,757
Level 3    
Financial assets:    
Loans and leases held-for-investment, net 11,195,503 10,717,430
Other real estate owned 2,005 2,005
Carrying amount | Level 1    
Financial assets:    
Cash and cash equivalents 481,874 452,016
Debt securities available-for-sale 96,659 0
Debt securities held-to-maturity 39,120 39,098
Equity securities 4,867 4,975
Carrying amount | Level 2    
Financial assets:    
Debt securities available-for-sale 617,503 586,325
Debt securities held-to-maturity 768,486 763,478
Federal Home Loan Bank stock 11,802 11,802
Accrued interest receivable 25,891 25,060
Investment management fees receivable, net 8,390 8,641
Bank owned life insurance 99,535 98,928
Financial liabilities:    
Deposits 12,165,476 11,504,389
Borrowings, net 470,262 470,163
Carrying amount | Level 2 | Interest rate swaps    
Financial assets:    
Interest rate swaps 103,148 90,173
Financial liabilities:    
Interest rate swaps 97,801 91,757
Carrying amount | Level 3    
Financial assets:    
Loans and leases held-for-investment, net 11,221,895 10,734,761
Other real estate owned $ 2,005 $ 2,005
v3.22.1
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Mar. 31, 2021
Accumulated Other Comprehensive Income [Roll Forward]    
Balance, beginning of period $ 836,722 $ 757,145
Change in unrealized holding gains (losses) (18,249) 729
Losses (gains) reclassified from other comprehensive income 591 641
Other comprehensive income (loss), net of tax (17,658) 1,370
Balance, end of period 838,138 774,286
Debt Securities    
Accumulated Other Comprehensive Income [Roll Forward]    
Balance, beginning of period (2,385) 3,834
Change in unrealized holding gains (losses) (22,822) (954)
Losses (gains) reclassified from other comprehensive income 0 (1)
Other comprehensive income (loss), net of tax (22,822) (955)
Balance, end of period (25,207) 2,879
Derivatives    
Accumulated Other Comprehensive Income [Roll Forward]    
Balance, beginning of period (1,039) (6,531)
Change in unrealized holding gains (losses) 4,573 1,683
Losses (gains) reclassified from other comprehensive income 591 642
Other comprehensive income (loss), net of tax 5,164 2,325
Balance, end of period 4,125 (4,206)
Total    
Accumulated Other Comprehensive Income [Roll Forward]    
Balance, beginning of period (3,424) (2,697)
Other comprehensive income (loss), net of tax (17,658) 1,370
Balance, end of period $ (21,082) $ (1,327)
v3.22.1
SEGMENTS - Schedule of Segment Reporting Information (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
USD ($)
segment
Mar. 31, 2021
USD ($)
Dec. 31, 2021
USD ($)
Segment Reporting Information [Line Items]      
Number of reportable segments | segment 2    
Total assets $ 13,677,667   $ 13,004,852
Income statement data:      
Interest income 67,577 $ 51,992  
Interest expense 13,976 13,336  
Net interest income 53,601 38,656  
Provision for credit losses 563 224  
Net interest income after provision for credit losses 53,038 38,432  
Non-interest income:      
Net gain on the sale and call of debt securities 0 (1)  
Other non-interest income (loss) 6,012 4,652  
Total non-interest income 15,097 13,651  
Non-interest expense:      
Intangible amortization expense 478 478  
Other non-interest expense 40,707 30,800  
Total non-interest expense 41,185 31,278  
Income (loss) before tax 26,950 20,805  
Income tax expense (benefit) 5,309 4,605  
Net income 21,641 16,200  
Investment management fees      
Non-interest income:      
Total non-interest income 9,085 9,000  
Parent and other      
Segment Reporting Information [Line Items]      
Total assets (7,148)   (7,872)
Income statement data:      
Interest income 16 0  
Interest expense 2,200 1,497  
Net interest income (2,184) (1,497)  
Provision for credit losses 0 0  
Net interest income after provision for credit losses (2,184) (1,497)  
Non-interest income:      
Net gain on the sale and call of debt securities 0 0  
Other non-interest income (loss) (124) 0  
Total non-interest income (483) (234)  
Non-interest expense:      
Intangible amortization expense 0 0  
Other non-interest expense 1,261 703  
Total non-interest expense 1,261 703  
Income (loss) before tax (3,928) (2,434)  
Income tax expense (benefit) (723) (434)  
Net income (3,205) (2,000)  
Parent and other | Investment management fees      
Non-interest income:      
Total non-interest income (359) (234)  
Bank | Operating segments      
Segment Reporting Information [Line Items]      
Total assets 13,602,380   12,926,161
Income statement data:      
Interest income 67,561 51,992  
Interest expense 11,776 11,839  
Net interest income 55,785 40,153  
Provision for credit losses 563 224  
Net interest income after provision for credit losses 55,222 39,929  
Non-interest income:      
Net gain on the sale and call of debt securities 0 (1)  
Other non-interest income (loss) 6,167 4,631  
Total non-interest income 6,167 4,630  
Non-interest expense:      
Intangible amortization expense 0 0  
Other non-interest expense 31,238 22,655  
Total non-interest expense 31,238 22,655  
Income (loss) before tax 30,151 21,904  
Income tax expense (benefit) 5,833 4,729  
Net income 24,318 17,175  
Bank | Operating segments | Investment management fees      
Non-interest income:      
Total non-interest income 0 0  
Investment management | Operating segments      
Segment Reporting Information [Line Items]      
Total assets 82,435   $ 86,563
Income statement data:      
Interest income 0 0  
Interest expense 0 0  
Net interest income 0 0  
Provision for credit losses 0 0  
Net interest income after provision for credit losses 0 0  
Non-interest income:      
Net gain on the sale and call of debt securities 0 0  
Other non-interest income (loss) (31) 21  
Total non-interest income 9,413 9,255  
Non-interest expense:      
Intangible amortization expense 478 478  
Other non-interest expense 8,208 7,442  
Total non-interest expense 8,686 7,920  
Income (loss) before tax 727 1,335  
Income tax expense (benefit) 199 310  
Net income 528 1,025  
Investment management | Operating segments | Investment management fees      
Non-interest income:      
Total non-interest income $ 9,444 $ 9,234  
v3.22.1
SUBSEQUENT EVENTS (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Apr. 11, 2022
Mar. 31, 2022
Series A preferred stock | Subsequent Event    
Subsequent Event [Line Items]    
Dividend payable $ 679  
Series A depositary share | Subsequent Event    
Subsequent Event [Line Items]    
Dividends payable (in dollars per share) $ 0.42  
Series B preferred stock | Subsequent Event    
Subsequent Event [Line Items]    
Dividend payable $ 1,300  
Series B depositary share | Subsequent Event    
Subsequent Event [Line Items]    
Dividends payable (in dollars per share) $ 0.40  
Series C preferred stock    
Subsequent Event [Line Items]    
Stock dividends (in shares)   11
Series C preferred stock | Subsequent Event    
Subsequent Event [Line Items]    
Stock dividends (in shares) 11