Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Oct. 31, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	TriState Capital Holdings, Inc.
Entity Central Index Key	0001380846
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Document Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		29,303,970

Unaudited Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
ASSETS
Cash	$ 355	$ 367
Interest-earning deposits with other institutions	378,182	183,625
Federal funds sold	5,411	5,993
Cash and cash equivalents	383,948	189,985
Debt securities available-for-sale, at fair value	261,180	233,296
Debt securities held-to-maturity, at cost	187,210	196,131
Equity securities, at fair value	4,807	12,661
Federal Home Loan Bank stock	15,524	24,671
Total investment securities	468,721	466,759
Loans and leases held-for-investment	6,016,680	5,132,873
Allowance for loan and lease losses	(13,374)	(13,208)
Loans and leases held-for-investment, net	6,003,306	5,119,665
Accrued interest receivable	22,157	20,702
Investment management fees receivable, net	7,453	7,299
Goodwill	41,660	41,660
Intangible assets, net of accumulated amortization of $9,935 and $8,429, respectively	24,697	26,203
Office properties and equipment, net of accumulated depreciation of $13,591 and $12,385, respectively	7,764	5,126
Operating lease right-of-use asset	23,088
Bank owned life insurance	69,607	68,309
Prepaid expenses and other assets	146,048	89,947
Total assets	7,198,449	6,035,655
Liabilities:
Deposits	6,094,605	5,050,461
Borrowings, net	330,000	404,166
Accrued interest payable on deposits and borrowings	5,705	5,204
Deferred tax liability, net	4,529	3,513
Acquisition earn out liability	0	2,920
Operating lease liability	24,037
Other accrued expenses and other liabilities	135,066	90,037
Total liabilities	6,593,942	5,556,301
Shareholders’ Equity:
Common stock, no par value; Shares authorized - 45,000,000; Shares issued - 31,410,262 and 30,893,584, respectively; Shares outstanding - 29,296,970 and 28,878,674, respectively	294,188	293,355
Additional paid-in capital	21,480	15,364
Retained earnings	205,807	164,009
Accumulated other comprehensive income (loss), net	(530)	(1,331)
Treasury stock (2,113,292 and 2,014,910 shares, respectively)	(32,502)	(30,511)
Total shareholders’ equity	604,507	479,354
Total liabilities and shareholders’ equity	7,198,449	6,035,655
Series A preferred stock
Shareholders’ Equity:
Preferred stock, no par value; Shares authorized - 150,000; Series A Shares issued and outstanding - 40,250 and 40,250, respectively and Series B Shares issued and outstanding - 80,500 and 0, respectively	38,468	38,468
Series B preferred stock
Shareholders’ Equity:
Preferred stock, no par value; Shares authorized - 150,000; Series A Shares issued and outstanding - 40,250 and 40,250, respectively and Series B Shares issued and outstanding - 80,500 and 0, respectively	$ 77,596	$ 0

Unaudited Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accumulated amortization	$ 9,935	$ 8,429
Accumulated depreciation	$ 13,591	$ 12,385
Shares Authorized, Preferred Stock (in shares)	150,000	150,000
Shares Authorized, Common Stock (in shares)	45,000,000	45,000,000
Shares Issued, Common Stock (in shares)	31,410,262	30,893,584
Shares Outstanding, Common Stock (in shares)	29,296,970	28,878,674
Treasury Stock (in shares)	2,113,292	2,014,910
Series A preferred stock
Shares Issued, Preferred Stock (in shares)	40,250	40,250
Shares Outstanding, Preferred Stock (in shares)	40,250	40,250
Series B preferred stock
Shares Issued, Preferred Stock (in shares)	80,500	0
Shares Outstanding, Preferred Stock (in shares)	80,500	0

Unaudited Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest income:
Loans and leases	$ 61,551	$ 48,470	$ 179,392	$ 132,111
Investments	3,993	2,893	12,497	6,977
Interest-earning deposits	2,188	1,061	5,084	2,536
Total interest income	67,732	52,424	196,973	141,624
Interest expense:
Deposits	34,114	22,182	95,602	52,279
Borrowings	1,302	1,423	7,380	5,473
Total interest expense	35,416	23,605	102,982	57,752
Net interest income	32,316	28,819	93,991	83,872
Provision (credit) for loan and lease losses	(607)	(234)	(1,696)	376
Net interest income after provision for loan and lease losses	32,923	29,053	95,687	83,496
Non-interest income:
Net gain on the sale and call of debt securities	206	0	346	6
Other income	371	523	2,105	1,392
Total non-interest income	14,243	12,751	39,291	36,342
Non-interest expense:
Compensation and employee benefits	18,707	16,967	52,467	48,177
Premises and occupancy costs	1,704	1,432	4,808	3,986
Professional fees	1,305	889	3,706	3,538
FDIC insurance expense	994	1,053	3,462	3,333
General insurance expense	258	278	811	767
State capital shares tax	(720)	485	40	1,396
Travel and entertainment expense	1,339	986	3,214	2,638
Intangible amortization expense	502	502	1,506	1,465
Other operating expenses	3,684	3,094	12,016	9,554
Total non-interest expense	27,773	25,686	82,030	74,854
Income before tax	19,393	16,118	52,948	44,984
Income tax expense	3,059	1,807	7,359	5,680
Net income	16,334	14,311	45,589	39,304
Preferred stock dividends	1,962	679	3,791	1,441
Net income available to common shareholders	$ 14,372	$ 13,632	$ 41,798	$ 37,863
Earnings per common share:
Basic (in usd per share)	$ 0.52	$ 0.49	$ 1.50	$ 1.37
Diluted (in usd per share)	$ 0.50	$ 0.47	$ 1.45	$ 1.31
Investment management fees
Non-interest income:
Total non-interest income	$ 8,902	$ 9,828	$ 27,580	$ 28,422
Service charges on deposits
Non-interest income:
Total non-interest income	129	146	343	420
Swap fees
Non-interest income:
Total non-interest income	4,171	1,881	7,666	5,066
Commitment and other loan fees
Non-interest income:
Total non-interest income	$ 464	$ 373	$ 1,251	$ 1,036

Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 16,334	$ 14,311	$ 45,589	$ 39,304
Other comprehensive income (loss):
Unrealized holding gains (losses) on debt securities, net of tax expense (benefit) of $272, $(59), $1,466 and $(455), respectively	787	(192)	4,477	(1,517)
Reclassification adjustment for gains included in net income on debt securities, net of tax expense of $(32), $0, $(62) and $(1), respectively	(101)	0	(198)	(5)
Unrealized holding gains (losses) on derivatives, net of tax expense (benefit) of $(231), $37, $(787) and $336, respectively	(736)	120	(2,506)	1,103
Reclassification adjustment for gains included in net income on derivatives, net of tax expense of $(37), $(96), $(305) and $(222), respectively	(120)	(316)	(972)	(730)
Other comprehensive income (loss)	(170)	(388)	801	(1,149)
Total comprehensive income	$ 16,164	$ 13,923	$ 46,390	$ 38,155

- Definition

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

+ References + Details

Unaudited Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Tax expense (benefit) on unrealized holding gains (losses) on debt securities	$ 272	$ (59)	$ 1,466	$ (455)
Tax benefit (expense) on debt securities losses (gains) reclassified from other comprehensive income	(32)	0	(62)	(1)
Tax expense (benefit) on unrealized holding gains (losses) on derivatives	(231)	37	(787)	336
Tax benefit (expense) on derivative losses (gains) reclassified from other comprehensive income	$ (37)	$ (96)	$ (305)	$ (222)

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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Impact of adoption of ASU \| ASU 2014-09	$ 534				$ 534
Impact of adoption of ASU \| ASU 2016-01					(286)	$ 286
Beginning balance at Dec. 31, 2017	389,071	$ 0	$ 289,507	$ 10,290	111,732	1,246	$ (23,704)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification for certain income tax effects under ASU 2018-02 \| ASU 2018-02					(274)	274
Net income	39,304				39,304
Other comprehensive income (loss)	(1,149)					(1,149)
Issuance of preferred stock, net of offering costs	38,468	38,468
Preferred stock dividends	(1,441)				(1,441)
Exercise of stock options	1,346		3,314	(1,968)
Purchase of treasury stock	(4,584)						(4,584)
Stock-based compensation	6,071			6,071
Ending balance at Sep. 30, 2018	467,620	38,468	292,821	14,393	149,569	657	(28,288)
Beginning balance at Jun. 30, 2018						1,045
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	14,311
Other comprehensive income (loss)	(388)
Ending balance at Sep. 30, 2018	467,620	38,468	292,821	14,393	149,569	657	(28,288)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Impact of adoption of ASU \| ASU 2016-01						0
Beginning balance at Dec. 31, 2018	479,354	38,468	293,355	15,364	164,009	(1,331)	(30,511)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification for certain income tax effects under ASU 2018-02 \| ASU 2018-02						0
Net income	45,589				45,589
Other comprehensive income (loss)	801					801
Issuance of preferred stock, net of offering costs	77,596	77,596
Preferred stock dividends	(3,791)				(3,791)
Exercise of stock options	458		833	(375)
Purchase of treasury stock	(1,991)						(1,991)
Stock-based compensation	6,491			6,491
Ending balance at Sep. 30, 2019	604,507	116,064	294,188	21,480	205,807	(530)	(32,502)
Beginning balance at Jun. 30, 2019						(360)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	16,334
Other comprehensive income (loss)	(170)
Ending balance at Sep. 30, 2019	$ 604,507	$ 116,064	$ 294,188	$ 21,480	$ 205,807	$ (530)	$ (32,502)

Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Preferred Stock
Offering costs	$ 2,904	$ 1,782

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income	$ 45,589	$ 39,304
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and intangible amortization expense	2,711	2,625
Amortization of deferred financing costs	84	152
Provision (credit) for loan losses	(1,696)	376
Net gain on the sale of loans	0	(19)
Stock-based compensation expense	6,491	6,071
Net gain on the sale or call of debt securities available-for-sale	(260)	(3)
Net gain on the call of debt securities held-to-maturity	(86)	(3)
Income from equity securities	(881)	(38)
Net amortization of premiums and discounts on debt securities	40	551
Increase in investment management fees receivable, net	(154)	(346)
Increase in accrued interest receivable	(1,455)	(4,951)
Increase in accrued interest payable	501	1,572
Bank owned life insurance income	(1,298)	(1,285)
Increase in income taxes payable	1,997	0
Increase in prepaid income taxes	9,130	10,790
Deferred tax provision	705	944
Decrease in accounts payable and other accrued expenses	(9,951)	(313)
Other, net	(2,735)	129
Net cash provided by operating activities	48,732	55,556
Cash flows from investing activities:
Purchase of debt securities available-for-sale	(59,110)	(150,556)
Purchase of debt securities held-to-maturity	(174,614)	(38,928)
Purchase of equity securities	0	(5,200)
Proceeds from the sale of debt securities available-for-sale	4,993	2,037
Proceeds from the sale of equity securities	8,844	0
Principal repayments and maturities of debt securities available-for-sale	32,171	18,657
Principal repayments and maturities of debt securities held-to-maturity	183,585	7,004
Investment in low income housing and historic tax credits	(12,201)	(3,541)
Investment in small business investment companies	(1,043)	(736)
Net redemption (purchase) of Federal Home Loan Bank stock	9,147	(3,087)
Net increase in loans and leases	(881,944)	(582,394)
Proceeds from loan sales	0	7,092
Additions to office properties and equipment	(3,843)	(1,253)
Acquisition	0	(1,335)
Net cash used in investing activities	(894,015)	(752,240)
Cash flows from financing activities:
Net increase in deposit accounts	1,044,144	766,977
Net decrease in Federal Home Loan Bank advances	(35,000)	(70,000)
Net decrease in line of credit advances	(4,250)	(3,700)
Net proceeds from issuance of preferred stock	77,596	38,468
Repayment of subordinated debt	(35,000)	0
Net proceeds from exercise of stock options	458	1,346
Payment of contingent consideration	(2,920)	0
Purchase of treasury stock	(1,991)	(4,584)
Dividends paid on preferred stock	(3,791)	(1,441)
Net cash provided by financing activities	1,039,246	727,066
Net change in cash and cash equivalents during the period	193,963	30,382
Cash and cash equivalents at beginning of the period	189,985	156,153
Cash and cash equivalents at end of the period	383,948	186,535
Cash paid (received) during the period for:
Interest expense	102,397	56,028
Income taxes	(4,473)	(6,054)
Other non-cash activity:
Operating lease right-of-use asset	23,088
Loan foreclosures and repossessions	1,492	0
Unsettled purchase of debt securities held-to-maturity	0	5,000
Contingent consideration	$ 0	$ 3,138

Basis of Information and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

BASIS OF INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NATURE OF OPERATION

TriState Capital Holdings, Inc. (“we,” “us,” “our,” the “holding company,” the “parent company,” or the “Company”) is a registered bank holding company pursuant to the Bank Holding Company Act of 1956, as amended. The Company has three wholly owned subsidiaries: TriState Capital Bank, a Pennsylvania-chartered state bank (the “Bank”); Chartwell Investment Partners, LLC, a registered investment adviser (“Chartwell”); and Chartwell TSC Securities Corp., a registered broker/dealer (“CTSC Securities”).

The Bank was established to serve the commercial banking needs of middle-market businesses and private banking needs of high-net-worth individuals. 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 foreclosed properties for the Bank. Chartwell provides investment management services primarily to institutional investors, mutual funds and individual investors. CTSC Securities supports marketing efforts for the proprietary investment products provided by Chartwell, including shares of mutual funds advised and/or administered by Chartwell.

The Company and the Bank are subject to regulatory examination by the Federal Deposit Insurance Corporation (“FDIC”), the Pennsylvania Department of Banking and Securities and the Board of Governors of the Federal Reserve System and its Reserve Banks, which we refer to as the Federal Reserve. Chartwell is a registered investment adviser regulated by the Securities and Exchange Commission (“SEC”). CTSC Securities is regulated by the SEC and the Financial Industry Regulatory Authority, Inc. (“FINRA”).

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

USE OF ESTIMATES

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

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

CONSOLIDATION

Our consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, the Bank, Chartwell and CTSC Securities, after elimination of inter-company accounts and transactions. The accounts of the Bank, in turn, include its wholly owned subsidiaries, TSC Equipment Finance and Meadowood, after elimination of inter-company accounts and transactions. The unaudited condensed consolidated financial statements of the Company presented herein have been prepared pursuant to SEC rules for Quarterly Reports on Form 10-Q and do not include all of the information and note disclosures required by GAAP for a full year presentation. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited condensed consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and the related notes for the fiscal year ended December 31, 2018, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 19, 2019.

CASH AND CASH EQUIVALENTS

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

BUSINESS COMBINATIONS

The Company accounts for business combinations using the acquisition method of accounting. Under this method of accounting, the acquired company’s net assets are recorded at fair value as of the date of acquisition, and the results of operations of the acquired company are combined with our results from that date forward. Acquisition costs are expensed when incurred. The difference between the purchase price, which includes an initial measurement of any contingent earn out, and the fair value of the net assets acquired (including identified intangibles) is recorded as goodwill in the consolidated statements of financial condition. A change in the initial estimate of any contingent earn out amount is recorded to non-interest expense in the consolidated statements of income.

INVESTMENT SECURITIES

The Company’s investments are classified as either: (1) held-to-maturity, which are debt securities that the Company intends to hold until maturity and are reported at amortized cost; (2) trading, which are debt securities bought and held principally for the purpose of selling them in the near term and reported at fair value, with unrealized gains and losses included in non-interest income; (3) available-for-sale, which are debt securities not classified as either held-to-maturity or trading securities and reported at fair value, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss), on an after-tax basis; or (4) equity securities, which are reported at fair value, with unrealized gains and losses included in non-interest income.

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

FEDERAL HOME LOAN BANK STOCK

The Company is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh. Member institutions are required to invest in FHLB stock. The stock is carried at cost, which approximates its liquidation value, and it is evaluated for impairment based on the ultimate recoverability of the par value. The following matters are considered by management when evaluating the FHLB stock for impairment: the ability of the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; the impact of legislative and regulatory changes on the institution and its customer base; and the Company’s intent and ability to hold its FHLB stock for the foreseeable future. Management believes the Company’s holdings in the FHLB stock were recoverable at par value as of September 30, 2019 and December 31, 2018. Cash and stock dividends are reported as interest income on investments in the consolidated statements of income.

LOANS AND LEASES

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

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

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

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

OTHER REAL ESTATE OWNED

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

ALLOWANCE FOR LOAN AND LEASE LOSSES

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

In management’s judgment, the allowance was appropriate to cover probable losses inherent in the loan and lease portfolio as of September 30, 2019 and December 31, 2018. Management’s judgment takes into consideration general economic conditions, diversification and seasoning of the loan portfolio, historic loss experience, identified credit problems, delinquency levels and adequacy of collateral. Although management believes it has used the best information available to it in making such determinations, and that the present allowance for loan and lease losses is adequate, future adjustments to the allowance may be necessary, and net income may be adversely affected if circumstances differ substantially from the assumptions used in determining the level of the allowance. In addition, as an integral part of their periodic examination, certain regulatory agencies review the adequacy of the Bank’s allowance for loan and lease losses and may direct the Bank to make additions to the allowance based on their judgments about information available to them at the time of their examination.

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

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

In estimating probable loan and lease loss of general reserves, management considers numerous factors, including historical charge-offs and subsequent recoveries. Management also considers qualitative factors that influence our credit quality, including, but not limited to, delinquency and non-performing loan trends, changes in loan underwriting guidelines and credit policies, and the results of internal loan reviews. Finally, management considers the impact of changes in current local and regional economic conditions in the markets that we serve.

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

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

INVESTMENT MANAGEMENT FEES

The Company recognizes investment management fee revenue when advisory services are performed. Fees are based on assets under management and are calculated pursuant to individual client contracts. Investment management fees are generally received on a quarterly basis. Certain incremental costs incurred to acquire some of our investment management contracts are deferred and amortized to non-interest expense over the estimated life of the contract.

Investment management fees receivable represent amounts due for contractual investment management services provided to the Company’s clients, primarily institutional investors, mutual funds and individual investors. Management performs credit evaluations of its customers’ financial condition when it is deemed to be necessary and does not require collateral. The Company provides an allowance for uncollectible accounts based on specifically identified receivables. Bad debt expense is recorded to other non-interest expense on the consolidated statements of income and the allowance for uncollectible accounts is recorded to investment management fees receivable, net on the consolidated statements of financial position. Investment management fees receivable are considered delinquent when payment is not received within contractual terms and are charged off against the allowance for uncollectible accounts when management determines that recovery is unlikely and the Company ceases its collection efforts. There was no bad debt expense recorded for the nine months ended September 30, 2019, and 2018 and no allowance for uncollectible accounts as of September 30, 2019 and December 31, 2018.

GOODWILL AND OTHER INTANGIBLE ASSETS

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

Other intangible assets represent purchased assets that may lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. The Company has determined that certain of its acquired mutual fund client relationships meet the criteria to be considered indefinite-lived assets because the Company expects both the renewal of these contracts and the cash flows generated by these assets to continue indefinitely. Accordingly, the Company does not amortize these intangible assets, but instead reviews these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived assets may be impaired. Each reporting period, the Company assesses whether events or circumstances have occurred which indicate that the indefinite life criteria are no longer met. If the indefinite life criteria are no longer met, the Company assesses whether the carrying value of these assets exceeds its fair value. If the carrying value exceeds the fair value of the asset, an impairment loss is recorded in an amount equal to any such excess and the assets are reclassified to finite-lived. Other intangible assets that the Company has determined to have finite lives, such as its trade names, client lists and non-compete agreements are amortized over their estimated useful lives. These finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from four to 25 years. Finite-lived intangibles are evaluated for impairment on an annual basis or more frequently whenever events or circumstances occur indicating that the carrying amount may not be recoverable.

OFFICE PROPERTIES AND EQUIPMENT

Office properties and equipment are stated at cost less accumulated depreciation. Office properties include furniture, fixtures and leasehold improvements. Equipment includes computer equipment and internal use software. Depreciation is computed utilizing the straight-line method over the estimated useful lives of the related assets, except for leasehold improvements, which are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Estimated useful lives are dependent upon the nature and condition of the asset and range from three to 10 years. Repairs and maintenance are charged to expense as incurred, while improvements that extend the useful life are capitalized and depreciated to non-interest expense over the estimated remaining life of the asset.

OPERATING LEASES

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

BANK OWNED LIFE INSURANCE

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

DEPOSITS

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

BORROWINGS

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

INCOME TAXES

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

EARNINGS PER COMMON SHARE

Earnings per common share (“EPS”) is computed using the two-class method, where net income is reduced by dividends declared on our preferred stock to derive net income available to common shareholders. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution upon the exercise of stock options and the vesting of restricted stock awards granted utilizing the treasury stock method.

STOCK-BASED COMPENSATION

Compensation cost for all stock-based payments is based on the estimated grant-date fair value. The value of the portion of the award that is ultimately expected to vest is included in compensation and employee benefits expense in the consolidated statements of income and recorded as a component of additional paid-in capital. Compensation expense for all awards is recognized on a straight-line basis over the requisite service period for the entire grant.

DERIVATIVES AND HEDGING ACTIVITIES

All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities. All derivatives are recognized as either assets or liabilities on the consolidated statements of financial condition and measured at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. For derivatives designated as cash flow hedges, changes in fair value of the effective portion of the cash flow hedges are reported in accumulated other comprehensive income (loss). When the cash flows associated with the hedged item are realized, the gain or loss included in accumulated other comprehensive income (loss) is recognized in the consolidated statements of income. The Company also has interest rate derivative positions that are not designated as hedging instruments. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings.

FAIR VALUE MEASUREMENT

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


•	Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.


•	Level 2 – Observable inputs such as quoted prices for similar assets and liabilities in active markets, quoted prices for similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.


•	Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs.

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

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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

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

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

TREASURY STOCK

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

RECENT ACCOUNTING DEVELOPMENTS

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820),” which aims to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing fair value measurement disclosures. This ASU is effective for all entities for annual and interim periods in fiscal years beginning after December 15, 2019. Retrospective adoption is required except for the following changes, which are required to be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption: (1) changes in unrealized gains and losses included in other comprehensive income for Level 3 instruments; (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements; and (3) the narrative description of measurement uncertainty. Early adoption is permitted. An entity may early adopt any eliminated or modified disclosure requirements and delay adoption of the additional disclosure requirements until their effective date. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In January 2017, the FASB issued ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which requires an entity to no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. The changes are effective for public business entities, for annual and interim periods in fiscal years beginning after December 15, 2019. All entities may early adopt the standard for goodwill impairment tests with measurement dates after January 1, 2017. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life. The new impairment methodology, known as the current expected credit loss ("CECL") model, replaces the current incurred loss model and requires financial assets measured at amortized cost basis, such as loans, debt securities, net investments in leases, and off-balance-sheet credit exposures, to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The changes are effective for public business entities that are SEC filers for annual and interim periods in fiscal years beginning after December 15, 2019.

Management created a formal working group, consisting of key stakeholders from finance, risk management and credit management, to govern the implementation of this accounting standard. Management is in the process of designing current expected credit loss estimation methodologies and analyzing data to be able to comply with this standard. Management has engaged a third-party software model to determine the current expected credit loss within the requirements of the accounting standard. Management has begun parallel runs and continue to analyze initial results. Management is also in the process of developing a governance process, a qualitative framework, and an operational and control structure. The adoption of this standard could have a material impact on the Company’s financial statements depending on the composition, characteristics and quality of its loan portfolio, as well as the current and forecasted economic conditions as of the date of adoption and thereafter. The Company is continuing to evaluate the quantitative and qualitative effects of the standard on our estimated credit losses, results of operations, financial position and related disclosure.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which, among other things, requires lessees to recognize most leases on the balance sheet and disclose key information about leasing arrangements. This has resulted in an increase to a company’s reported assets and liabilities. Lessor accounting remains substantially similar to current U.S. GAAP. ASU 2016-02 supersedes Topic 840, “Leases” and replaces it with Topic 842 “Leases.” This standard was effective for public business entities, certain not-for-profit entities, and certain employee benefit plans for annual and interim periods in fiscal years beginning after December 15, 2018. This standard provides for a modified retrospective transition approach requiring lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption with the option to elect certain practical expedients. The Company’s operating leases primarily relate to our six office spaces and other office equipment. We have completed our assessment of this standard and have recognized a lease liability and related right-of-use asset on our balance sheet, with no impact on our income statement. The Company adopted this standard and all standards related to Topic 842 on January 1, 2019, and elected to apply it as of the beginning of the period of adoption. Of the optional practical expedients available under ASU 2016-02, all have been adopted except for the hindsight practical expedient.

RECLASSIFICATION

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

Investment Securities

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

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



	September 30, 2019
(Dollars in thousands)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Estimated Fair Value
Debt securities available-for-sale:
Corporate bonds	$	183,621	$	2,788	$	444	$	185,965
Trust preferred securities	18,060		—		706		17,354
Agency collateralized mortgage obligations	28,887		17		38		28,866
Agency mortgage-backed securities	18,469		426		—		18,895
Agency debentures	9,486		614		—		10,100
Total debt securities available-for-sale	258,523		3,845		1,188		261,180
Debt securities held-to-maturity:
Corporate bonds	27,180		585		—		27,765
Agency debentures	136,892		969		105		137,756
Municipal bonds	18,765		150		—		18,915
Agency mortgage-backed securities	4,373		409		—		4,782
Total debt securities held-to-maturity	187,210		2,113		105		189,218
Total debt securities	$	445,733	$	5,958	$	1,293	$	450,398



	December 31, 2018
(Dollars in thousands)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Estimated Fair Value
Debt securities available-for-sale:
Corporate bonds	$	152,691	$	33	$	1,661	$	151,063
Trust preferred securities	17,964		—		1,115		16,849
Non-agency collateralized loan obligations	393		—		3		390
Agency collateralized mortgage obligations	33,680		42		4		33,718
Agency mortgage-backed securities	21,575		37		348		21,264
Agency debentures	9,994		67		49		10,012
Total debt securities available-for-sale	236,297		179		3,180		233,296
Debt securities held-to-maturity:
Corporate bonds	27,184		353		22		27,515
Agency debentures	141,575		472		34		142,013
Municipal bonds	22,963		11		61		22,913
Agency mortgage-backed securities	4,409		—		27		4,382
Total debt securities held-to-maturity	196,131		836		144		196,823
Total debt securities	$	432,428	$	1,015	$	3,324	$	430,119

Interest income on investment securities was as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2019		2018		2019		2018
Taxable interest income	$	3,521	$	2,408	$	11,034	$	5,722
Non-taxable interest income	90		101		295		317
Dividend income	382		384		1,168		938
Total interest income on investment securities	$	3,993	$	2,893	$	12,497	$	6,977

As of September 30, 2019, the contractual maturities of the debt securities were:



	September 30, 2019
	Available-for-Sale				Held-to-Maturity
(Dollars in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in less than one year	$	45,082	$	45,284	$	3,306	$	3,316
Due from one to five years	107,420		109,664		20,622		20,892
Due from five to ten years	40,983		40,816		127,952		128,597
Due after ten years	65,038		65,416		35,330		36,413
Total debt securities	$	258,523	$	261,180	$	187,210	$	189,218

The $65.4 million fair value of debt securities available-for-sale with a contractual maturity due after 10 years as of September 30, 2019, included $38.6 million, or 58.9%, that are floating-rate securities. The $128.0 million amortized cost of debt securities held-to-maturity with a contractual maturity due from five to 10 years as of September 30, 2019, included $20.8 million that have call provisions within the next four years that would either mature, if called, or become floating-rate securities after the call date.

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

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



	Available-for-Sale				Held-to-Maturity				Available-for-Sale				Held-to-Maturity
	Three Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2019		2018		2019		2018		2019		2018		2019		2018
Proceeds from sales	$	—	$	—	$	—	$	—	$	4,993	$	2,037	$	—	$	—
Proceeds from calls	9,435		—		63,529		—		13,517		4,081		180,824		1,000
Total proceeds	$	9,435	$	—	$	63,529	$	—	$	18,510	$	6,118	$	180,824	$	1,000

Gross realized gains	$	134	$	—	$	72	$	—	$	260	$	6	$	86	$	3
Gross realized losses	—		—		—		—		—		3		—		—
Net realized gains	$	134	$	—	$	72	$	—	$	260	$	3	$	86	$	3

Debt securities available-for-sale of $3.0 million as of September 30, 2019, were held in safekeeping at the FHLB and were included in the calculation of borrowing capacity.

The following tables show the fair value and gross unrealized losses on temporarily impaired debt securities available-for-sale and held-to-maturity, by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of September 30, 2019 and December 31, 2018, respectively:



	September 30, 2019
	Less than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Debt securities available-for-sale:
Corporate bonds	$	—	$	—	$	20,660	$	444	$	20,660	$	444
Trust preferred securities	17,353		706		—		—		17,353		706
Agency collateralized mortgage obligations	22,319		29		2,720		9		25,039		38
Total debt securities available-for-sale	39,672		735		23,380		453		63,052		1,188
Debt securities held-to-maturity:
Agency debentures	31,922		105		—		—		31,922		105
Total debt securities held-to-maturity	31,922		105		—		—		31,922		105
Total temporarily impaired debt securities ⁽¹⁾	$	71,594	$	840	$	23,380	$	453	$	94,974	$	1,293


⁽¹⁾	The number of investment positions with unrealized losses totaled 20 for available-for-sale securities and 4 for held-to-maturity securities.



	December 31, 2018
	Less than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Debt securities available-for-sale:
Corporate bonds	$	110,200	$	789	$	22,954	$	872	$	133,154	$	1,661
Trust preferred securities	16,849		1,115		—		—		16,849		1,115
Non-agency collateralized loan obligations	—		—		390		3		390		3
Agency collateralized mortgage obligations	—		—		3,015		4		3,015		4
Agency mortgage-backed securities	5,851		51		8,690		297		14,541		348
Agency debentures	3,487		49		—		—		3,487		49
Total debt securities available-for-sale	136,387		2,004		35,049		1,176		171,436		3,180
Debt securities held-to-maturity:
Corporate bonds	3,978		22		—		—		3,978		22
Agency debentures	1,952		34		—		—		1,952		34
Municipal bonds	16,105		51		2,110		10		18,215		61
Agency mortgage-backed securities	4,382		27		—		—		4,382		27
Total debt securities held-to-maturity	26,417		134		2,110		10		28,527		144
Total temporarily impaired debt securities ⁽¹⁾	$	162,804	$	2,138	$	37,159	$	1,186	$	199,963	$	3,324


⁽¹⁾	The number of investment positions with unrealized losses totaled 78 for available-for-sale securities and 29 for held-to-maturity securities.

The changes in the fair values of our municipal bonds, agency debentures, agency collateralized mortgage obligations and agency mortgage-backed securities are primarily the result of interest rate fluctuations. To assess for credit impairment, management evaluates the underlying issuer’s financial performance and the related credit rating information through a review of publicly available financial statements and other publicly available information. The most recent assessment for credit impairment did not identify any issues related to the ultimate repayment of principal and interest on these debt securities. In addition, the Company has the ability and intent to hold debt securities in an unrealized loss position until recovery of their amortized cost. Based on this, the Company considers all of the unrealized losses to be temporary.

There were no outstanding debt securities classified as trading as of September 30, 2019 and December 31, 2018.

Equity securities as of September 30, 2019, consisted of an investment in a mid-cap value equity mutual fund. There were $4.8 million and $12.7 million in equity securities outstanding as of September 30, 2019 and December 31, 2018, respectively.

There was $15.5 million and $24.7 million in FHLB stock outstanding as of September 30, 2019 and December 31, 2018, respectively.

Loans and Leases

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

LOANS AND LEASES

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

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



	September 30, 2019
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate			Total
Loans and leases held-for-investment, before deferred fees and costs	$	3,361,987		$	989,769		$	1,660,564		$	6,012,320
Deferred loan costs (fees)	6,155			2,739			(4,534		)	4,360
Loans and leases held-for-investment, net of deferred fees and costs	3,368,142			992,508			1,656,030			6,016,680
Allowance for loan and lease losses	(1,851		)	(5,316		)	(6,207		)	(13,374		)
Loans and leases held-for-investment, net	$	3,366,291		$	987,192		$	1,649,823		$	6,003,306



	December 31, 2018
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate			Total
Loans and leases held-for-investment, before deferred fees and costs	$	2,864,094		$	781,836		$	1,482,148		$	5,128,078
Deferred loan costs (fees)	5,449			3,484			(4,138		)	4,795
Loans and leases held-for-investment, net of deferred fees and costs	2,869,543			785,320			1,478,010			5,132,873
Allowance for loan and lease losses	(1,942		)	(5,764		)	(5,502		)	(13,208		)
Loans and leases held-for-investment, net	$	2,867,601		$	779,556		$	1,472,508		$	5,119,665

The Company’s customers have unused loan commitments based on the availability of eligible collateral or other terms and conditions under their loan agreements. Often these commitments are not fully utilized and therefore the total amount does not necessarily represent future cash requirements. The amount of unfunded commitments, including standby letters of credit, as of September 30, 2019 and December 31, 2018, was $4.54 billion and $3.54 billion, respectively. The interest rate for each commitment is based on the prevailing market conditions at the time of funding. The reserve for losses on unfunded commitments was $595,000 and $542,000 as of September 30, 2019 and December 31, 2018, respectively, which includes reserves for probable losses on unfunded loan commitments, including standby letters of credit and also risk participations.

The total unfunded commitments above included loans in the process of origination totaling approximately $36.1 million and $64.4 million as of September 30, 2019 and December 31, 2018, respectively, which extend over varying periods of time.

The Company issues standby letters of credit in the normal course of business. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. The Company would be required to perform under a standby letter of credit when drawn upon by the guaranteed party in the case of non-performance by the Company’s customer. Collateral may be obtained based on management’s credit assessment of the customer. The amount of unfunded commitments related to standby letters of credit as of September 30, 2019 and December 31, 2018, included in the total unfunded commitments above, was $71.1 million and $60.0 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 nine months ended September 30, 2019 and 2018, there were draws on letters of credit totaling $135,000 and $6.0 million, respectively, which were repaid by the borrowers. Most of these commitments are expected to expire without being drawn upon and the total amount does not necessarily represent future cash requirements. The potential liability for losses on standby letters of credit was included in the reserve for losses on unfunded commitments.

The Company has entered into risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are a participant. The risk participation agreements provide credit protection to the financial institution counterparties should the customers fail to perform on their interest rate derivative contracts. The potential liability for outstanding obligations was included in the reserve for losses on unfunded commitments.

Allowance for Loan and Lease Losses

9 Months Ended

Sep. 30, 2019

Allowance for Loan and Lease Losses [Abstract]

ALLOWANCE FOR LOAN AND LEASE LOSSES

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

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

Private Banking Loans

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

The underlying collateral is the most important indicator of risk for this loan portfolio. The overall lower risk profile of this portfolio is driven by loans secured by cash, marketable securities and/or cash value life insurance, which were 97.2% and 96.7% of total private banking loans as of September 30, 2019 and December 31, 2018, respectively.

Middle-Market Banking: Commercial and Industrial Loans and Leases

This loan portfolio primarily includes loans and leases made to financial and other service companies or manufacturers generally for the purposes of financing production, operating capacity, accounts receivable, inventory, equipment, acquisitions and recapitalizations. Cash flow from the borrower’s operations is the primary source of repayment for these loans and leases, except for certain commercial loans that are secured by marketable securities.

The borrower’s industry and local and regional economic conditions are important indicators of risk for this loan portfolio. Collateral for these types of loans at times does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt. C&I loans collateralized by marketable securities are treated the same as private banking loans for purposes of the allowance for loan and lease loss calculation.

Middle-Market Banking: Commercial Real Estate Loans

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

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

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

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

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

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

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

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

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

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



	September 30, 2019
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Pass	$	3,364,566	$	976,204	$	1,649,303	$	5,990,073
Special mention	3,392		9,745		6,467		19,604
Substandard	184		6,559		260		7,003
Loans and leases held-for-investment	$	3,368,142	$	992,508	$	1,656,030	$	6,016,680



	December 31, 2018
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Pass	$	2,864,774	$	767,540	$	1,475,793	$	5,108,107
Special mention	2,532		12,636		2,217		17,385
Substandard	2,237		5,144		—		7,381
Loans and leases held-for-investment	$	2,869,543	$	785,320	$	1,478,010	$	5,132,873

Changes in the allowance for loan and lease losses were as follows for the three months ended September 30, 2019 and 2018:



	Three Months Ended September 30, 2019
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate		Total
Balance, beginning of period	$	2,140		$	5,911		$	5,965	$	14,016
Provision (credit) for loan losses	(177		)	(672		)	242		(607		)
Charge-offs	(112		)	—			—		(112		)
Recoveries	—			77			—		77
Balance, end of period	$	1,851		$	5,316		$	6,207	$	13,374



	Three Months Ended September 30, 2018
(Dollars in thousands)	Private Banking		Commercial and Industrial			Commercial Real Estate		Total
Balance, beginning of period	$	1,557	$	8,786		$	4,978	$	15,321
Provision (credit) for loan losses	337		(838		)	267		(234		)
Charge-offs	—		(2,068		)	—		(2,068		)
Recoveries	—		564			—		564
Balance, end of period	$	1,894	$	6,444		$	5,245	$	13,583

Changes in the allowance for loan and lease losses were as follows for the nine months ended September 30, 2019 and 2018:



	Nine Months Ended September 30, 2019
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate		Total
Balance, beginning of period	$	1,942		$	5,764		$	5,502	$	13,208
Provision (credit) for loan losses	21			(2,422		)	705		(1,696		)
Charge-offs	(112		)	—			—		(112		)
Recoveries	—			1,974			—		1,974
Balance, end of period	$	1,851		$	5,316		$	6,207	$	13,374



	Nine Months Ended September 30, 2018
(Dollars in thousands)	Private Banking		Commercial and Industrial			Commercial Real Estate		Total
Balance, beginning of period	$	1,577	$	8,043		$	4,797	$	14,417
Provision (credit) for loan losses	317		(389		)	448		376
Charge-offs	—		(2,068		)	—		(2,068		)
Recoveries	—		858			—		858
Balance, end of period	$	1,894	$	6,444		$	5,245	$	13,583

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



	September 30, 2019
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total
Private banking	$	—	$	808	$	184	$	992	$	3,367,150	$	3,368,142
Commercial and industrial	—		—		—		—		992,508		992,508
Commercial real estate	—		—		—		—		1,656,030		1,656,030
Loans and leases held-for-investment	$	—	$	808	$	184	$	992	$	6,015,688	$	6,016,680



	December 31, 2018
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total
Private banking	$	1,040	$	173	$	2,000	$	3,213	$	2,866,330	$	2,869,543
Commercial and industrial	—		—		—		—		785,320		785,320
Commercial real estate	—		—		—		—		1,478,010		1,478,010
Loans and leases held-for-investment	$	1,040	$	173	$	2,000	$	3,213	$	5,129,660	$	5,132,873

Non-Performing and Impaired Loans

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

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

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



	As of and for the Nine Months Ended September 30, 2019
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With a related allowance recorded:
Private banking	$	171	$	193	$	171	$	171	$	—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total with a related allowance recorded	171		193		171		171		—
Without a related allowance recorded:
Private banking	13		13		—		13		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total without a related allowance recorded	13		13		—		13		—
Total:
Private banking	184		206		171		184		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total	$	184	$	206	$	171	$	184	$	—



	As of and for the Twelve Months Ended December 31, 2018
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With a related allowance recorded:
Private banking	$	2,237	$	2,421	$	437	$	2,293	$	—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total with a related allowance recorded	2,237		2,421		437		2,293		—
Without a related allowance recorded:
Private banking	—		—		—		—		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total without a related allowance recorded	—		—		—		—		—
Total:
Private banking	2,237		2,421		437		2,293		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total	$	2,237	$	2,421	$	437	$	2,293	$	—

Impaired loans as of September 30, 2019 and December 31, 2018, were $184,000 and $2.2 million, respectively. There was no interest income recognized on impaired loans that were also on non-accrual status for the nine months ended September 30, 2019, and the twelve months ended December 31, 2018. As of September 30, 2019 and December 31, 2018, there were no loans 90 days or more past due and still accruing interest income.

Impaired loans were evaluated using a discounted cash flow method or based on the fair value of the collateral less estimated selling costs. Based on those evaluations there were specific reserves totaling $171,000 and $437,000 as of September 30, 2019 and December 31, 2018, respectively.

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



	September 30, 2019
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Allowance for loan and lease losses:
Individually evaluated for impairment	$	171	$	—	$	—	$	171
Collectively evaluated for impairment	1,680		5,316		6,207		13,203
Total allowance for loan and lease losses	$	1,851	$	5,316	$	6,207	$	13,374
Loans and leases held-for-investment:
Individually evaluated for impairment	$	184	$	—	$	—	$	184
Collectively evaluated for impairment	3,367,958		992,508		1,656,030		6,016,496
Loans and leases held-for-investment	$	3,368,142	$	992,508	$	1,656,030	$	6,016,680



	December 31, 2018
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Allowance for loan and lease losses:
Individually evaluated for impairment	$	437	$	—	$	—	$	437
Collectively evaluated for impairment	1,505		5,764		5,502		12,771
Total allowance for loan and lease losses	$	1,942	$	5,764	$	5,502	$	13,208
Loans and leases held-for-investment:
Individually evaluated for impairment	$	2,237	$	—	$	—	$	2,237
Collectively evaluated for impairment	2,867,306		785,320		1,478,010		5,130,636
Loans and leases held-for-investment	$	2,869,543	$	785,320	$	1,478,010	$	5,132,873

Troubled Debt Restructuring

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



(Dollars in thousands)	September 30, 2019		December 31, 2018
Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring:
Performing loans accruing interest	$	—	$	—
Non-accrual loans	171		237
Total troubled debt restructurings	$	171	$	237

There were no unused commitments on loans designated as troubled debt restructurings as of September 30, 2019 and December 31, 2018.

The modifications made to restructured loans typically consist of an extension of the payment terms or the deferral of principal payments. There were no loans modified as TDRs within 12 months of the corresponding balance sheet date with a payment default during the nine months ended September 30, 2019 and 2018.

There were no loans newly designated as TDRs during the nine months ended September 30, 2019 and 2018.

Other Real Estate Owned

As of September 30, 2019 and December 31, 2018, the balance of the other real estate owned portfolio was $4.3 million and $3.4 million, respectively. During the three and nine months ended September 30, 2019, collateral related to an impaired loan was transferred to OREO at a fair value of $1.5 million based on the appraised value, less estimated selling costs. In addition, a property was sold from other real estate owned totaling $169,000 with a net loss of $97,000 during the nine months ended September 30, 2019. There were no residential mortgage loans in the process of foreclosure as of September 30, 2019.

Operating Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

OPERATING LEASES

The Company has noncancellable operating leases primarily for its six office spaces and other office equipment that expire between 2019 and 2036. These leases generally contain renewal options for periods ranging from one to five years. Because the Company is not reasonably certain that it will exercise these renewal options, the options are not considered in determining the lease terms and associated potential option payments are excluded from lease payments. The Company’s leases generally do not include termination options for either party to the lease or restrictive financial or other covenants. Payments due under the lease contracts include fixed payments and, for many of the Company’s leases, variable payments. Variable payments for office space leases include the Company’s proportionate share of the building’s property taxes, insurance and common area maintenance. For office equipment leases for which the Company has elected not to separate lease and nonlease components, maintenance services are provided by the lessor at a fixed cost and are included in the fixed lease payments for the single, combined lease component.

Operating lease cost for the three and nine months ended September 30, 2019, was $805,000 and $2.0 million, respectively. As of September 30, 2019, the weighted average remaining lease term was 14.1 years and the weighted average discount rate as 4.25%.

Maturities of lease liabilities under noncancellable leases as of September 30, 2019, are as follows:



(Dollars in thousands)	Amount
September 30,
2020	$	2,594
2021	2,637
2022	2,621
2023	2,151
2024	2,046
Thereafter	20,709
Total undiscounted lease payments	$	32,758
Imputed interest	(8,721		)
Operating lease liability	$	24,037

Deposits

9 Months Ended

Sep. 30, 2019

Deposits [Abstract]

DEPOSITS

As of September 30, 2019 and December 31, 2018, deposits were comprised of the following:



	Interest Rate Range	Weighted Average Interest Rate		Balance
(Dollars in thousands)	September 30, 2019	September 30, 2019	December 31, 2018	September 30, 2019		December 31, 2018
Demand and savings accounts:
Noninterest-bearing checking accounts	—	—	—	$	312,285	$	258,268
Interest-bearing checking accounts	0.05 to 3.15%	1.83%	2.29%	1,333,189		778,131
Money market deposit accounts	0.10 to 3.25%	2.10%	2.45%	3,149,346		2,781,870
Total demand and savings accounts				4,794,820		3,818,269
Certificates of deposit	1.29 to 3.25%	2.50%	2.39%	1,299,785		1,232,192
Total deposits				$	6,094,605	$	5,050,461
Weighted average rate on interest-bearing accounts		2.13%	2.41%

As of September 30, 2019 and December 31, 2018, the Bank had total brokered deposits of $618.1 million and $641.4 million, respectively. Reciprocal deposits through Certificate of Deposit Account Registry Service^® (“CDARS^®”) and Insured Cash Sweep^® (“ICS^®”) totaled $883.6 million and $565.3 million as of September 30, 2019 and December 31, 2018, respectively, and were considered non-brokered.

As of September 30, 2019 and December 31, 2018, certificates of deposit with balances of $100,000 or more, excluding brokered and reciprocal deposits, totaled $552.3 million and $569.8 million, respectively. As of September 30, 2019 and December 31, 2018, certificates of deposit with balances of $250,000 or more, excluding brokered and reciprocal deposits, totaled $223.7 million and $230.0 million.

The contractual maturity of certificates of deposit was as follows:



(Dollars in thousands)	September 30, 2019		December 31, 2018
12 months or less	$	1,082,409	$	992,468
12 months to 24 months	176,331		181,456
24 months to 36 months	41,045		58,268
Total	$	1,299,785	$	1,232,192

Interest expense on deposits was as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2019		2018		2019		2018
Interest-bearing checking accounts	$	5,795	$	3,267	$	15,303	$	7,464
Money market deposit accounts	18,870		12,428		53,608		30,263
Certificates of deposit	9,449		6,487		26,691		14,552
Total interest expense on deposits	$	34,114	$	22,182	$	95,602	$	52,279

Borrowings

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

BORROWINGS

As of September 30, 2019 and December 31, 2018, borrowings were comprised of the following:



	September 30, 2019				December 31, 2018
(Dollars in thousands)	Interest Rate	Ending Balance		Maturity Date	Interest Rate	Ending Balance		Maturity Date
FHLB borrowings:
FHLB line of credit	2.08%	$	130,000	5/1/2020	2.62%	$	250,000	5/1/2019
Issued 9/3/2019	2.26%	150,000		12/2/2019		—
Issued 7/8/2019	2.50%	50,000		10/8/2019		—
Issued 12/31/2018		—			2.65%	65,000		1/2/2019
Issued 10/10/2018		—			2.54%	50,000		1/8/2019
Line of credit borrowings		—			5.47%	4,250		9/28/2019
Subordinated notes payable (net of debt issuance costs of $0 and $84)		—			5.75%	34,916		7/1/2019
Total borrowings, net		$	330,000			$	404,166

The Bank’s FHLB borrowing capacity is based on the collateral value of certain securities held in safekeeping at the FHLB and loans pledged to the FHLB. The Bank submits a quarterly Qualifying Collateral Report (“QCR”) to the FHLB to update the value of the loans pledged. As of September 30, 2019, the Bank’s borrowing capacity is based on the information provided in the June 30, 2019, QCR filing. As of September 30, 2019, the Bank had securities held in safekeeping at the FHLB with a fair value of $3.0 million, combined with pledged loans of $1.18 billion, for a gross borrowing capacity of $843.0 million, of which $330.0 million was outstanding in advances. As of December 31, 2018, there was $365.0 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 September 30, 2019 and December 31, 2018, 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 $2.6 million in notional value of credit cards have been issued. The clients of the Bank are responsible for repaying any balances due on these credit cards directly to PNC, however if the customer fails to repay PNC, the Bank could be required to satisfy the obligation to PNC and initiate collection from our customer as part of the existing credit facility of that customer.

The holding company maintains an unsecured line of credit of $50.0 million with Texas Capital Bank. As of September 30, 2019 and December 31, 2018, there was $0 and $4.3 million outstanding under this line of credit, respectively.

Interest expense on borrowings was as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2019		2018		2019		2018
FHLB borrowings	$	1,302	$	853	$	6,222	$	3,743
Line of credit borrowings	—		16		68		69
Subordinated notes payable	—		554		1,090		1,661
Total interest expense on borrowings	$	1,302	$	1,423	$	7,380	$	5,473

Stock Transactions

9 Months Ended

Sep. 30, 2019

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

STOCK TRANSACTIONS

In May 2019, the Company completed the issuance and sale of a registered, underwritten public offering of 3.2 million depositary shares, each representing a 1/40th interest in a share of its 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock, no par value (the “Series B Preferred Stock”), with a liquidation preference of $1,000 per share (equivalent to $25 per depository share). The Company received net proceeds of $77.6 million from the sale of 80,500 shares of its Series B Preferred Stock (equivalent to 3.2 million depositary shares), after deducting underwriting discounts, commissions and direct offering expenses. The preferred stock provides Tier 1 capital for the holding company under federal regulatory capital rules.

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

In March 2018, the Company completed the issuance and sale of a registered, underwritten public offering of 1.6 million depositary shares, each representing a 1/40th interest in a share of its 6.75% Fixed-to-Floating Rate Series A Non-Cumulative Perpetual Preferred Stock, no par value (the “Series A Preferred Stock”), with a liquidation preference of $1,000 per share (equivalent to $25 per depository share). The Company received net proceeds of $38.5 million from the sale of 40,250 shares of its Series A Preferred Stock (equivalent to 1.6 million depositary shares), after deducting underwriting discounts, commissions and direct offering expenses. The preferred stock provides Tier 1 capital for the holding company under federal regulatory capital rules.

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

During the nine months ended September 30, 2019, the Company paid dividends of $2.0 million on its Series A Preferred Stock and $1.8 million on its Series B Preferred Stock. During the nine months ended September 30, 2018, the Company paid dividends of $1.4 million on its Series A Preferred Stock.

Under authorization by the Board, the Company was permitted to repurchase its common stock up to prescribed amounts, of which $10.4 million remained available as of September 30, 2019. The Board also authorized the Company to utilize some of the share repurchase program authorizations to cancel certain options to purchase shares of its common stock granted by the Company. During the nine months ended September 30, 2019, the Company repurchased a total of 90,000 shares for approximately $1.8 million, at an average cost of $20.21 per share, which are held as treasury stock. During the nine months ended September 30, 2018, the Company repurchased a total of 169,936 shares for approximately $4.6 million, at an average cost of $26.97 per share, which are held as treasury stock.

In addition to the shares purchased in the market, the Company acquired 8,382 shares of treasury stock for approximately $173,000 in connection with the exercise, net settlement or vesting of equity awards during the nine months ended September 30, 2019.

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



	Number of Preferred Shares Outstanding	Number of Common Shares Outstanding
Balance, December 31, 2017	—	28,591,101
Issuance of preferred stock	40,250	—
Issuance of restricted common stock	—	396,113
Forfeitures of restricted common stock	—	(24,000	)
Exercise of stock options	—	127,700
Purchase of treasury stock	—	(169,936	)
Balance, September 30, 2018	40,250	28,920,978

Balance, December 31, 2018	40,250	28,878,674
Issuance of preferred stock	80,500	—
Issuance of restricted common stock	—	550,453
Forfeitures of restricted common stock	—	(74,355	)
Exercise of stock options	—	40,580
Purchase of treasury stock	—	(98,382	)
Balance, September 30, 2019	120,750	29,296,970

Regulatory Capital

9 Months Ended

Sep. 30, 2019

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

REGULATORY CAPITAL

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

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the tables below) of Common Equity Tier 1 (“CET 1”), Tier 1 and Total risk-based capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to average assets (as defined). As of September 30, 2019 and December 31, 2018, TriState Capital Holdings, Inc. and TriState Capital Bank exceeded all capital adequacy requirements to which they were subjected.

Financial depository institutions are categorized as well capitalized if they meet minimum capital ratios as set forth in the tables below. The Bank exceeded the capital ratios necessary to be well capitalized under the regulatory framework for prompt corrective action. There have been no conditions or events since the filing of the most recent Call Report that management believes have changed the Bank’s capital, as presented in the tables below.

The Basel III regulatory capital framework (the “Basel III”), which began phasing in on January 1, 2015, has replaced the regulatory capital rules for the Company and the Bank. The Basel III final rules required new minimum capital ratio standards, established a new CET 1 to total risk-weighted assets ratio, subjected banking organizations to certain limitations on capital distributions and discretionary bonus payments, and established a new standardized approach for risk weightings.

The final rules subject a banking organization to certain limitations on capital distributions and discretionary bonus payments to executive officers if the organization does not maintain a capital conservation buffer of risk-based capital ratios in an amount greater than 2.5% of its total risk-weighted assets. The implementation of the capital conservation buffer began on January 1, 2016, at 0.625%, and was phased in ratably over a four-year period until it reached 2.5% on January 1, 2019. As of September 30, 2019 and December 31, 2018, the capital conservation buffer was 2.5% and 1.875%, respectively, in addition to the minimum capital adequacy levels shown in the tables below. Thus, both the Company and the Bank were above the levels required to avoid limitations on capital distributions and discretionary bonus payments.

The following tables set forth certain information concerning the Company’s and the Bank’s regulatory capital as of September 30, 2019 and December 31, 2018:



	September 30, 2019
	Actual				For Capital Adequacy Purposes				To be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total risk-based capital ratio
Company	$	552,734	12.40	%	$	356,596	8.00	%	N/A		N/A
Bank	$	505,370	11.38	%	$	355,135	8.00	%	$	443,919	10.00	%
Tier 1 risk-based capital ratio
Company	$	541,505	12.15	%	$	267,447	6.00	%	N/A		N/A
Bank	$	491,401	11.07	%	$	266,352	6.00	%	$	355,135	8.00	%
Common equity tier 1 risk-based capital ratio
Company	$	427,084	9.58	%	$	200,585	4.50	%	N/A		N/A
Bank	$	491,401	11.07	%	$	199,764	4.50	%	$	288,547	6.50	%
Tier 1 leverage ratio
Company	$	541,505	7.91	%	$	273,931	4.00	%	N/A		N/A
Bank	$	491,401	7.20	%	$	273,036	4.00	%	$	341,295	5.00	%



	December 31, 2018
	Actual				For Capital Adequacy Purposes				To be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total risk-based capital ratio
Company	$	426,066	10.86	%	$	313,789	8.00	%	N/A		N/A
Bank	$	437,849	11.25	%	$	311,497	8.00	%	$	389,371	10.00	%
Tier 1 risk-based capital ratio
Company	$	414,808	10.58	%	$	235,342	6.00	%	N/A		N/A
Bank	$	424,418	10.90	%	$	233,622	6.00	%	$	311,497	8.00	%
Common equity tier 1 risk-based capital ratio
Company	$	378,117	9.64	%	$	176,506	4.50	%	N/A		N/A
Bank	$	424,418	10.90	%	$	175,217	4.50	%	$	253,091	6.50	%
Tier 1 leverage ratio
Company	$	414,808	7.28	%	$	227,851	4.00	%	N/A		N/A
Bank	$	424,418	7.49	%	$	226,762	4.00	%	$	283,453	5.00	%

- Definition

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

+ References

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-Name Accounting Standards Codification
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+ Details

Earnings Per Common Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

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



	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2019		2018		2019		2018

Net income available to common shareholders	$	14,372	$	13,632	$	41,798	$	37,863
Weighted average common shares outstanding:
Basic	27,863,767		27,588,607		27,861,515		27,603,784
Restricted stock - dilutive	600,985		863,084		569,260		757,572
Stock options - dilutive	313,919		498,233		328,633		488,570
Diluted	28,778,671		28,949,924		28,759,408		28,849,926

Earnings per common share:
Basic	$	0.52	$	0.49	$	1.50	$	1.37
Diluted	$	0.50	$	0.47	$	1.45	$	1.31



	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018
Anti-dilutive shares ⁽¹⁾	9,000	4,000	13,000	7,000


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

Derivatives and Hedging Activity

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND HEDGING ACTIVITY

RISK MANAGEMENT OBJECTIVE OF USING DERIVATIVES

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

FAIR VALUES OF DERIVATIVE INSTRUMENTS ON THE STATEMENTS OF FINANCIAL CONDITION

The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the unaudited condensed consolidated statements of financial condition as of September 30, 2019 and December 31, 2018:



	Asset Derivatives			Liability Derivatives
	as of September 30, 2019			as of September 30, 2019
(Dollars in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate products	Other assets	$	—	Other liabilities	$	3,191

Derivatives not designated as hedging instruments:
Interest rate products	Other assets	73,030		Other liabilities	73,100
Equity products	Other assets	—		Other liabilities	109


Total	Other assets	$	73,030	Other liabilities	$	76,400



	Asset Derivatives			Liability Derivatives
	as of December 31, 2018			as of December 31, 2018
(Dollars in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate products	Other assets	$	1,384	Other liabilities	$	—

Derivatives not designated as hedging instruments:
Interest rate products	Other assets	25,523		Other liabilities	25,518


Total	Other assets	$	26,907	Other liabilities	$	25,518

The following tables show the impact legally enforceable master netting agreements had on the Company’s derivative financial instruments as of September 30, 2019 and December 31, 2018:



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

(Dollars in thousands)							Financial Instruments			Cash Collateral Received
September 30, 2019	$	73,030	$	—	$	73,030	$	(248	)	$	—	$	72,782

December 31, 2018	$	26,907	$	—	$	26,907	$	(9,587	)	$	—	$	17,320



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

(Dollars in thousands)							Financial Instruments			Cash Collateral Posted
September 30, 2019	$	76,400	$	—	$	76,400	$	(248	)	$	(75,789	)	$	363

December 31, 2018	$	25,518	$	—	$	25,518	$	(9,587	)	$	(3,941	)	$	11,990

CASH FLOW HEDGES OF INTEREST RATE RISK

The Company’s objectives in using certain interest rate derivatives are to add stability to net interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. The Company has entered into derivative contracts to hedge the variable cash flows associated with certain FHLB borrowings. These interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company effectively making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company’s cash flow hedge derivatives did not have any hedge ineffectiveness recognized in earnings during the nine months ended September 30, 2019.

Characteristics of the Company’s interest rate derivative transactions designated as cash flow hedges of interest rate risk as of September 30, 2019, were as follows:



(Dollars in thousands)	Notional Amount		Effective Rate ⁽¹⁾	Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months		Maturity Date	Remaining Term (in Months)
Interest rate products:
Issued 1/8/2018	$	50,000	2.21%	$	207	1/8/2021	15
Issued 5/30/2019	50,000		2.05%	125		6/1/2022	32
Issued 5/30/2019	50,000		2.03%	118		6/1/2023	44
Issued 5/30/2019	50,000		2.04%	123		6/1/2024	56
Total	$	200,000		$	573


⁽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 September 30,				Three Months Ended September 30,
(Dollars in thousands)		2019		2018		2019			2018
Derivatives designated as hedging instruments:	Location of Gain (Loss) Recognized in Income on Derivatives	Realized Gain (Loss) Recognized in Income on Derivatives				Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives
Interest rate products	Interest expense	$	156	$	412	$	(967	)	$	157



		Nine Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)		2019		2018		2019			2018
Derivatives designated as hedging instruments:	Location of Gain (Loss) Recognized in Income on Derivatives	Realized Gain (Loss) Recognized in Income on Derivatives				Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives
Interest rate products	Interest expense	$	1,277	$	952	$	(3,293	)	$	1,439

NON-DESIGNATED HEDGES

The Company does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and primarily result from a service the Company provides to certain customers. The Company executes interest rate derivatives with its commercial banking customers to facilitate their respective risk management strategies. Those derivatives are simultaneously and economically hedged by offsetting derivatives that the Company executes with a third party, such that the Company eliminates its interest rate exposure resulting from such transactions. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As of September 30, 2019, the Company had interest rate derivative transactions with an aggregate notional amount of $2.59 billion related to this program.

In addition, the Company also has executed equity derivatives to economically hedge certain of its equity investments. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As of September 30, 2019, the Company had equity derivative transactions with an aggregate notional amount of $2.5 million.

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 September 30,					Nine Months Ended September 30,
(Dollars in thousands)		2019			2018		2019			2018
Derivatives not designated as hedging instruments:	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives					Amount of Gain (Loss) Recognized in Income on Derivatives
Interest rate products	Non-interest income	$	(17	)	$	—	$	(59	)	$	22
Equity products	Non-interest income	(32		)	—		(109		)	—
Total		$	(49	)	$	—	$	(168	)	$	22

CREDIT-RISK-RELATED CONTINGENT FEATURES

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

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

As of September 30, 2019, the termination value of derivatives for which the Company had master netting arrangements with the counterparty and in a net liability position was $75.8 million, including accrued interest. As of September 30, 2019, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $80.1 million. If the Company had breached any of these provisions as of September 30, 2019, it could have been required to settle its obligations under the agreements at their termination value.

Disclosures About Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

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

FAIR VALUE MEASUREMENTS

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

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


•	Level 1 – Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in actively traded markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities.


•	Level 2 – Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets or liabilities that are actively traded. Level 2 also includes pricing models in which the inputs are corroborated by market data, for example, matrix pricing.

•

Level 3 – Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 inputs include assumptions of a source independent of the reporting entity or the reporting entity’s own assumptions that are supported by little or no market activity or observable inputs.

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

RECURRING FAIR VALUE MEASUREMENTS

The following tables represent assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018:



	September 30, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets / Liabilities at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds	$	—	$	185,965	$	—	$	185,965
Trust preferred securities	—		17,354		—		17,354
Agency collateralized mortgage obligations	—		28,866		—		28,866
Agency mortgage-backed securities	—		18,895		—		18,895
Agency debentures	—		10,100		—		10,100
Equity securities	4,807		—		—		4,807
Interest rate swaps	—		73,030		—		73,030
Total financial assets	4,807		334,210		—		339,017

Financial liabilities:
Interest rate swaps	—		76,291		—		76,291
Equity swaps	109		—		—		109
Total financial liabilities	$	109	$	76,291	$	—	$	76,400



	December 31, 2018
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets / Liabilities at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds	$	—	$	151,063	$	—	$	151,063
Trust preferred securities	—		16,849		—		16,849
Non-agency collateralized loan obligations	—		390		—		390
Agency collateralized mortgage obligations	—		33,718		—		33,718
Agency mortgage-backed securities	—		21,264		—		21,264
Agency debentures	—		10,012		—		10,012
Equity securities	12,661		—		—		12,661
Interest rate swaps	—		26,907		—		26,907
Total financial assets	12,661		260,203		—		272,864

Financial liabilities:
Interest rate swaps	—		25,518		—		25,518
Acquisition earn out liability	—		—		2,920		2,920
Total financial liabilities	$	—	$	25,518	$	2,920	$	28,438

INVESTMENT SECURITIES

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

INTEREST RATE SWAPS

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

EQUITY SWAPS

Equity swaps are classified as Level 1 because the price of derivative contracts is quoted in actively traded markets.

ACQUISITION EARN OUT LIABILITY

The fair value of the Columbia Partners, L.L.C. Investment Management (“Columbia”) acquisition earn out liability was estimated based on management’s estimate of the projected annualized run-rate revenue of Columbia at December 31, 2018, and therefore is classified as Level 3. The earn out liability was fully paid during the three months ended March 31, 2019, and there is no remaining earn out liability.

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 September 30, 2019 and December 31, 2018:



	September 30, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets at Fair Value
Loans measured for impairment, net	$	—	$	—	$	13	$	13
Other real estate owned	—		—		4,250		4,250
Total assets	$	—	$	—	$	4,263	$	4,263



	December 31, 2018
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets at Fair Value
Loans measured for impairment, net	$	—	$	—	$	1,800	$	1,800
Other real estate owned	—		—		3,424		3,424
Total assets	$	—	$	—	$	5,224	$	5,224

As of September 30, 2019 and December 31, 2018, the Company recorded $171,000 and $437,000, respectively, of specific reserves to allowance for loan and lease losses as a result of adjusting the fair value of impaired loans.

IMPAIRED LOANS

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

OTHER REAL ESTATE OWNED

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

LEVEL 3 VALUATION

The following tables present additional quantitative information about assets measured at fair value on a recurring and non-recurring basis and for which we have utilized Level 3 inputs to determine fair value as of September 30, 2019 and December 31, 2018:



	September 30, 2019
(Dollars in thousands)	Fair Value		Valuation Techniques ⁽¹⁾	Significant Unobservable Inputs	Weighted Average Discount Rate
Loans measured for impairment, net	$	13	Collateral	Appraisal value and discount due to salability conditions	—%

Other real estate owned	$	4,250	Collateral	Appraisal value and discount due to salability conditions	18%


⁽¹⁾	Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow of ongoing operations if the loan is not collateral dependent.



	December 31, 2018
(Dollars in thousands)	Fair Value		Valuation Techniques ⁽¹⁾	Significant Unobservable Inputs	Weighted Average Multiple/ Discount Rate
Acquisition earn out liability	$	2,920	Income approach	Run-rate revenue multiple; client retention	1.6 times

Loans measured for impairment, net	$	1,800	Collateral	Appraisal value and discount due to salability conditions	16%

Other real estate owned	$	3,424	Collateral	Appraisal value and discount due to salability conditions	10%


⁽¹⁾	Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow of ongoing operations if the loan is not collateral dependent.

FAIR VALUE OF FINANCIAL INSTRUMENTS

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



		September 30, 2019				December 31, 2018
(Dollars in thousands)	Fair Value Level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	1	$	383,948	$	383,948	$	189,985	$	189,985
Debt securities available-for-sale	2	261,180		261,180		233,296		233,296
Debt securities held-to-maturity	2	187,210		189,218		196,131		196,823
Equity securities	1	4,807		4,807		12,661		12,661
Federal Home Loan Bank stock	2	15,524		15,524		24,671		24,671
Loans and leases held-for-investment, net	3	6,003,306		5,994,960		5,119,665		5,119,562
Accrued interest receivable	2	22,157		22,157		20,702		20,702
Investment management fees receivable, net	2	7,453		7,453		7,299		7,299
Bank owned life insurance	2	69,607		69,607		68,309		68,309
Other real estate owned	3	4,250		4,250		3,424		3,424
Interest rate swaps	2	73,030		73,030		26,907		26,907

Financial liabilities:
Deposits	2	$	6,094,605	$	6,108,128	$	5,050,461	$	5,048,079
Borrowings, net	2	330,000		330,020		404,166		404,084
Acquisition earn out liability	3	—		—		2,920		2,920
Interest rate swaps	2	76,291		76,291		25,518		25,518
Equity swaps	1	109		109		—		—

During the nine months ended September 30, 2019 and 2018, 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 September 30, 2019 and December 31, 2018:

CASH AND CASH EQUIVALENTS

The carrying amount approximates fair value.

INVESTMENT SECURITIES

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

FEDERAL HOME LOAN BANK STOCK

The carrying value of our FHLB stock, which is carried at cost, approximates fair value.

LOANS AND LEASES HELD-FOR-INVESTMENT

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

ACCRUED INTEREST RECEIVABLE

The carrying amount approximates fair value.

INVESTMENT MANAGEMENT FEES RECEIVABLE

The carrying amount approximates fair value.

BANK OWNED LIFE INSURANCE

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

OTHER REAL ESTATE OWNED

OREO is recorded at fair value, less estimated disposition costs, with the fair value being determined by appraisal.

DEPOSITS

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

BORROWINGS

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

ACQUISITION EARN OUT LIABILITY

The carrying amount of the Columbia acquisition earn out liability approximates fair value.

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.

EQUITY SWAPS

Equity swaps are classified as Level 1 because the price of derivative contracts is quoted in actively traded markets.

OFF-BALANCE SHEET INSTRUMENTS

Fair values for the Company’s off-balance sheet instruments, which consist of lending commitments, standby letters of credit and risk participation agreements related to interest rate swap agreements, are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. Management believes that the fair value of these off-balance sheet instruments is not significant.

- Definition

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

+ References + Details

Changes in Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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



	Three Months Ended September 30,
	2019									2018
(Dollars in thousands)	Debt Securities			Derivatives			Total			Debt Securities			Derivatives			Total
Balance, beginning of period	$	1,230		$	(1,590	)	$	(360	)	$	(833	)	$	1,878		$	1,045
Change in unrealized holding gains (losses)	787			(736		)	51			(192		)	120			(72		)
Gains reclassified from other comprehensive income	(101		)	(120		)	(221		)	—			(316		)	(316		)
Net other comprehensive income (loss)	686			(856		)	(170		)	(192		)	(196		)	(388		)
Balance, end of period	$	1,916		$	(2,446	)	$	(530	)	$	(1,025	)	$	1,682		$	657



	Nine Months Ended September 30,
	2019									2018
(Dollars in thousands)	Debt Securities			Derivatives			Total			Debt Securities			Derivatives			Total
Balance, beginning of period	$	(2,363	)	$	1,032		$	(1,331	)	$	172		$	1,074		$	1,246
Change in unrealized holding gains (losses)	4,477			(2,506		)	1,971			(1,517		)	1,103			(414		)
Gains reclassified from other comprehensive income	(198		)	(972		)	(1,170		)	(5		)	(730		)	(735		)
Reclassification for equity securities under ASU 2016-01	—			—			—			286			—			286
Reclassification for certain income tax effects under ASU 2018-02	—			—			—			39			235			274
Net other comprehensive income (loss)	4,279			(3,478		)	801			(1,197		)	608			(589		)
Balance, end of period	$	1,916		$	(2,446	)	$	(530	)	$	(1,025	)	$	1,682		$	657

Contingent Liabilities	9 Months Ended
Contingent Liabilities	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
CONTINGENT LIABILITIES	CONTINGENT LIABILITIES From time to time the Company is a party to various litigation matters incidental to the conduct of its business. The Company is not aware of any material unasserted claims. In the opinion of management, there are no potential claims that would have a material adverse effect on the Company’s financial position, liquidity or results of operations.

Segments

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

SEGMENTS

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


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


•	The Investment Management segment provides advisory and sub-advisory investment management services primarily to institutional investors, mutual funds and individual investors through the Chartwell subsidiary. It also supports marketing efforts for Chartwell’s proprietary investment products through the CTSC Securities subsidiary.

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



(Dollars in thousands)	September 30, 2019			December 31, 2018
Assets:
Bank	$	7,113,983		$	5,947,165
Investment management	92,283			92,894
Parent and other	(7,817		)	(4,404		)
Total assets	$	7,198,449		$	6,035,655



	Three Months Ended September 30, 2019												Three Months Ended September 30, 2018
(Dollars in thousands)	Bank			Investment Management			Parent and Other			Consolidated			Bank			Investment Management		Parent and Other			Consolidated
Income statement data:
Interest income	$	67,720		$	—		$	12		$	67,732		$	52,354		$	—	$	70		$	52,424
Interest expense	35,455			—			(39		)	35,416			23,038			—		567			23,605
Net interest income (loss)	32,265			—			51			32,316			29,316			—		(497		)	28,819
Provision (credit) for loan and lease losses	(607		)	—			—			(607		)	(234		)	—		—			(234		)
Net interest income (loss) after provision for loan and lease losses	32,872			—			51			32,923			29,550			—		(497		)	29,053
Non-interest income:
Investment management fees	—			9,016			(114		)	8,902			—			9,914		(86		)	9,828
Net gain on the sale and call of debt securities	206			—			—			206			—			—		—			—
Other non-interest income	5,113			(9		)	31			5,135			2,850			—		73			2,923
Total non-interest income	5,319			9,007			(83		)	14,243			2,850			9,914		(13		)	12,751
Non-interest expense:
Intangible amortization expense	—			502			—			502			—			502		—			502
Other non-interest expense	18,949			8,186			136			27,271			17,002			8,173		9			25,184
Total non-interest expense	18,949			8,688			136			27,773			17,002			8,675		9			25,686
Income (loss) before tax	19,242			319			(168		)	19,393			15,398			1,239		(519		)	16,118
Income tax expense (benefit)	3,142			3			(86		)	3,059			1,676			282		(151		)	1,807
Net income (loss)	$	16,100		$	316		$	(82	)	$	16,334		$	13,722		$	957	$	(368	)	$	14,311



	Nine Months Ended September 30, 2019											Nine Months Ended September 30, 2018
(Dollars in thousands)	Bank			Investment Management		Parent and Other			Consolidated			Bank		Investment Management		Parent and Other			Consolidated
Income statement data:
Interest income	$	196,862		$	—	$	111		$	196,973		$	141,424	$	—	$	200		$	141,624
Interest expense	101,891			—		1,091			102,982			56,027		—		1,725			57,752
Net interest income (loss)	94,971			—		(980		)	93,991			85,397		—		(1,525		)	83,872
Provision (credit) for loan and lease losses	(1,696		)	—		—			(1,696		)	376		—		—			376
Net interest income (loss) after provision for loan and lease losses	96,667			—		(980		)	95,687			85,021		—		(1,525		)	83,496
Non-interest income:
Investment management fees	—			27,912		(332		)	27,580			—		28,621		(199		)	28,422
Net gain on the sale and call of debt securities	346			—		—			346			6		—		—			6
Other non-interest income	10,467			17		881			11,365			7,875		1		38			7,914
Total non-interest income	10,813			27,929		549			39,291			7,881		28,622		(161		)	36,342
Non-interest expense:
Intangible amortization expense	—			1,506		—			1,506			—		1,465		—			1,465
Other non-interest expense	56,872			23,174		478			80,524			49,011		23,988		390			73,389
Total non-interest expense	56,872			24,680		478			82,030			49,011		25,453		390			74,854
Income (loss) before tax	50,608			3,249		(909		)	52,948			43,891		3,169		(2,076		)	44,984
Income tax expense (benefit)	6,825			830		(296		)	7,359			5,485		786		(591		)	5,680
Net income (loss)	$	43,783		$	2,419	$	(613	)	$	45,589		$	38,406	$	2,383	$	(1,485	)	$	39,304

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS On October 15, 2019, 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 January 2, 2020, to preferred shareholders of record as of the close of business on December 18, 2019. On October 17, 2019, the Company amended it’s $50.0 million unsecured line of credit agreement with Texas Capital Bank to extend the maturity until October 17, 2020.

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

9 Months Ended

Sep. 30, 2019

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 private banking needs of high-net-worth individuals. 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 foreclosed properties for the Bank. Chartwell provides investment management services primarily to institutional investors, mutual funds and individual investors. CTSC Securities supports marketing efforts for the proprietary investment products provided by Chartwell, including shares of mutual funds advised and/or administered by Chartwell.

The Company and the Bank are subject to regulatory examination by the Federal Deposit Insurance Corporation (“FDIC”), the Pennsylvania Department of Banking and Securities and the Board of Governors of the Federal Reserve System and its Reserve Banks, which we refer to as the Federal Reserve. Chartwell is a registered investment adviser regulated by the Securities and Exchange Commission (“SEC”). CTSC Securities is regulated by the SEC and the Financial Industry Regulatory Authority, Inc. (“FINRA”).

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

Use of estimates

USE OF ESTIMATES

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

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

Consolidation

CONSOLIDATION

Our consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, the Bank, Chartwell and CTSC Securities, after elimination of inter-company accounts and transactions. The accounts of the Bank, in turn, include its wholly owned subsidiaries, TSC Equipment Finance and Meadowood, after elimination of inter-company accounts and transactions. The unaudited condensed consolidated financial statements of the Company presented herein have been prepared pursuant to SEC rules for Quarterly Reports on Form 10-Q and do not include all of the information and note disclosures required by GAAP for a full year presentation. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited condensed consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company and the related notes for the fiscal year ended December 31, 2018, included in the Company’s Annual Report on Form 10-K filed with the SEC on February 19, 2019.

Cash and cash equivalents

CASH AND CASH EQUIVALENTS

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

Business combinations

BUSINESS COMBINATIONS

The Company accounts for business combinations using the acquisition method of accounting. Under this method of accounting, the acquired company’s net assets are recorded at fair value as of the date of acquisition, and the results of operations of the acquired company are combined with our results from that date forward. Acquisition costs are expensed when incurred. The difference between the purchase price, which includes an initial measurement of any contingent earn out, and the fair value of the net assets acquired (including identified intangibles) is recorded as goodwill in the consolidated statements of financial condition. A change in the initial estimate of any contingent earn out amount is recorded to non-interest expense in the consolidated statements of income.

Investment securities

INVESTMENT SECURITIES

The Company’s investments are classified as either: (1) held-to-maturity, which are debt securities that the Company intends to hold until maturity and are reported at amortized cost; (2) trading, which are debt securities bought and held principally for the purpose of selling them in the near term and reported at fair value, with unrealized gains and losses included in non-interest income; (3) available-for-sale, which are debt securities not classified as either held-to-maturity or trading securities and reported at fair value, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss), on an after-tax basis; or (4) equity securities, which are reported at fair value, with unrealized gains and losses included in non-interest income.

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

Federal Home Loan Bank stock

FEDERAL HOME LOAN BANK STOCK

The Company is a member of the Federal Home Loan Bank (“FHLB”) of Pittsburgh. Member institutions are required to invest in FHLB stock. The stock is carried at cost, which approximates its liquidation value, and it is evaluated for impairment based on the ultimate recoverability of the par value. The following matters are considered by management when evaluating the FHLB stock for impairment: the ability of the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; the impact of legislative and regulatory changes on the institution and its customer base; and the Company’s intent and ability to hold its FHLB stock for the foreseeable future. Management believes the Company’s holdings in the FHLB stock were recoverable at par value as of September 30, 2019 and December 31, 2018. Cash and stock dividends are reported as interest income on investments in the consolidated statements of income.

Loans and leases

LOANS AND LEASES

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

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

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

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

Other real estate owned

OTHER REAL ESTATE OWNED

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

Allowance for loan and lease losses

ALLOWANCE FOR LOAN AND LEASE LOSSES

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

In management’s judgment, the allowance was appropriate to cover probable losses inherent in the loan and lease portfolio as of September 30, 2019 and December 31, 2018. Management’s judgment takes into consideration general economic conditions, diversification and seasoning of the loan portfolio, historic loss experience, identified credit problems, delinquency levels and adequacy of collateral. Although management believes it has used the best information available to it in making such determinations, and that the present allowance for loan and lease losses is adequate, future adjustments to the allowance may be necessary, and net income may be adversely affected if circumstances differ substantially from the assumptions used in determining the level of the allowance. In addition, as an integral part of their periodic examination, certain regulatory agencies review the adequacy of the Bank’s allowance for loan and lease losses and may direct the Bank to make additions to the allowance based on their judgments about information available to them at the time of their examination.

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

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

In estimating probable loan and lease loss of general reserves, management considers numerous factors, including historical charge-offs and subsequent recoveries. Management also considers qualitative factors that influence our credit quality, including, but not limited to, delinquency and non-performing loan trends, changes in loan underwriting guidelines and credit policies, and the results of internal loan reviews. Finally, management considers the impact of changes in current local and regional economic conditions in the markets that we serve.

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

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

Investment management fees

INVESTMENT MANAGEMENT FEES

The Company recognizes investment management fee revenue when advisory services are performed. Fees are based on assets under management and are calculated pursuant to individual client contracts. Investment management fees are generally received on a quarterly basis. Certain incremental costs incurred to acquire some of our investment management contracts are deferred and amortized to non-interest expense over the estimated life of the contract.

Investment management fees receivable represent amounts due for contractual investment management services provided to the Company’s clients, primarily institutional investors, mutual funds and individual investors. Management performs credit evaluations of its customers’ financial condition when it is deemed to be necessary and does not require collateral. The Company provides an allowance for uncollectible accounts based on specifically identified receivables. Bad debt expense is recorded to other non-interest expense on the consolidated statements of income and the allowance for uncollectible accounts is recorded to investment management fees receivable, net on the consolidated statements of financial position. Investment management fees receivable are considered delinquent when payment is not received within contractual terms and are charged off against the allowance for uncollectible accounts when management determines that recovery is unlikely and the Company ceases its collection efforts. There was no bad debt expense recorded for the nine months ended September 30, 2019, and 2018 and no allowance for uncollectible accounts as of September 30, 2019 and December 31, 2018.

Goodwill and other intangible assets

GOODWILL AND OTHER INTANGIBLE ASSETS

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

Other intangible assets represent purchased assets that may lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. The Company has determined that certain of its acquired mutual fund client relationships meet the criteria to be considered indefinite-lived assets because the Company expects both the renewal of these contracts and the cash flows generated by these assets to continue indefinitely. Accordingly, the Company does not amortize these intangible assets, but instead reviews these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived assets may be impaired. Each reporting period, the Company assesses whether events or circumstances have occurred which indicate that the indefinite life criteria are no longer met. If the indefinite life criteria are no longer met, the Company assesses whether the carrying value of these assets exceeds its fair value. If the carrying value exceeds the fair value of the asset, an impairment loss is recorded in an amount equal to any such excess and the assets are reclassified to finite-lived. Other intangible assets that the Company has determined to have finite lives, such as its trade names, client lists and non-compete agreements are amortized over their estimated useful lives. These finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from four to 25 years. Finite-lived intangibles are evaluated for impairment on an annual basis or more frequently whenever events or circumstances occur indicating that the carrying amount may not be recoverable.

Office properties and equipment

OFFICE PROPERTIES AND EQUIPMENT

Office properties and equipment are stated at cost less accumulated depreciation. Office properties include furniture, fixtures and leasehold improvements. Equipment includes computer equipment and internal use software. Depreciation is computed utilizing the straight-line method over the estimated useful lives of the related assets, except for leasehold improvements, which are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Estimated useful lives are dependent upon the nature and condition of the asset and range from three to 10 years. Repairs and maintenance are charged to expense as incurred, while improvements that extend the useful life are capitalized and depreciated to non-interest expense over the estimated remaining life of the asset.

Operating Leases

OPERATING LEASES

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

Bank owned life insurance

BANK OWNED LIFE INSURANCE

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

Deposits

DEPOSITS

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

Borrowings

BORROWINGS

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

Income taxes

INCOME TAXES

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

Earnings per common share

EARNINGS PER COMMON SHARE

Earnings per common share (“EPS”) is computed using the two-class method, where net income is reduced by dividends declared on our preferred stock to derive net income available to common shareholders. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period, excluding non-vested restricted stock. Diluted EPS reflects the potential dilution upon the exercise of stock options and the vesting of restricted stock awards granted utilizing the treasury stock method.

Stock-based compensation

STOCK-BASED COMPENSATION

Compensation cost for all stock-based payments is based on the estimated grant-date fair value. The value of the portion of the award that is ultimately expected to vest is included in compensation and employee benefits expense in the consolidated statements of income and recorded as a component of additional paid-in capital. Compensation expense for all awards is recognized on a straight-line basis over the requisite service period for the entire grant.

Derivatives and hedging activities

DERIVATIVES AND HEDGING ACTIVITIES

All derivatives are evaluated at inception as to whether or not they are hedging or non-hedging activities. All derivatives are recognized as either assets or liabilities on the consolidated statements of financial condition and measured at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. For derivatives designated as cash flow hedges, changes in fair value of the effective portion of the cash flow hedges are reported in accumulated other comprehensive income (loss). When the cash flows associated with the hedged item are realized, the gain or loss included in accumulated other comprehensive income (loss) is recognized in the consolidated statements of income. The Company also has interest rate derivative positions that are not designated as hedging instruments. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings.

Fair value measurement

FAIR VALUE MEASUREMENT

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


•	Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.


•	Level 2 – Observable inputs such as quoted prices for similar assets and liabilities in active markets, quoted prices for similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.


•	Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs.

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

Accumulated other comprehensive income (loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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

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

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

Treasury stock

TREASURY STOCK

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

Recent accounting developments

RECENT ACCOUNTING DEVELOPMENTS

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820),” which aims to improve the overall usefulness of disclosures to financial statement users and reduce unnecessary costs to companies when preparing fair value measurement disclosures. This ASU is effective for all entities for annual and interim periods in fiscal years beginning after December 15, 2019. Retrospective adoption is required except for the following changes, which are required to be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption: (1) changes in unrealized gains and losses included in other comprehensive income for Level 3 instruments; (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements; and (3) the narrative description of measurement uncertainty. Early adoption is permitted. An entity may early adopt any eliminated or modified disclosure requirements and delay adoption of the additional disclosure requirements until their effective date. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In January 2017, the FASB issued ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which requires an entity to no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. The changes are effective for public business entities, for annual and interim periods in fiscal years beginning after December 15, 2019. All entities may early adopt the standard for goodwill impairment tests with measurement dates after January 1, 2017. The Company is currently evaluating the impact this standard will have on our results of operations and financial position.

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life. The new impairment methodology, known as the current expected credit loss ("CECL") model, replaces the current incurred loss model and requires financial assets measured at amortized cost basis, such as loans, debt securities, net investments in leases, and off-balance-sheet credit exposures, to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The changes are effective for public business entities that are SEC filers for annual and interim periods in fiscal years beginning after December 15, 2019.

Management created a formal working group, consisting of key stakeholders from finance, risk management and credit management, to govern the implementation of this accounting standard. Management is in the process of designing current expected credit loss estimation methodologies and analyzing data to be able to comply with this standard. Management has engaged a third-party software model to determine the current expected credit loss within the requirements of the accounting standard. Management has begun parallel runs and continue to analyze initial results. Management is also in the process of developing a governance process, a qualitative framework, and an operational and control structure. The adoption of this standard could have a material impact on the Company’s financial statements depending on the composition, characteristics and quality of its loan portfolio, as well as the current and forecasted economic conditions as of the date of adoption and thereafter. The Company is continuing to evaluate the quantitative and qualitative effects of the standard on our estimated credit losses, results of operations, financial position and related disclosure.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which, among other things, requires lessees to recognize most leases on the balance sheet and disclose key information about leasing arrangements. This has resulted in an increase to a company’s reported assets and liabilities. Lessor accounting remains substantially similar to current U.S. GAAP. ASU 2016-02 supersedes Topic 840, “Leases” and replaces it with Topic 842 “Leases.” This standard was effective for public business entities, certain not-for-profit entities, and certain employee benefit plans for annual and interim periods in fiscal years beginning after December 15, 2018. This standard provides for a modified retrospective transition approach requiring lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption with the option to elect certain practical expedients. The Company’s operating leases primarily relate to our six office spaces and other office equipment. We have completed our assessment of this standard and have recognized a lease liability and related right-of-use asset on our balance sheet, with no impact on our income statement. The Company adopted this standard and all standards related to Topic 842 on January 1, 2019, and elected to apply it as of the beginning of the period of adoption. Of the optional practical expedients available under ASU 2016-02, all have been adopted except for the hindsight practical expedient.

Reclassification

RECLASSIFICATION

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

Investment Securities (Tables)

9 Months Ended

Sep. 30, 2019

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:



	September 30, 2019
(Dollars in thousands)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Estimated Fair Value
Debt securities available-for-sale:
Corporate bonds	$	183,621	$	2,788	$	444	$	185,965
Trust preferred securities	18,060		—		706		17,354
Agency collateralized mortgage obligations	28,887		17		38		28,866
Agency mortgage-backed securities	18,469		426		—		18,895
Agency debentures	9,486		614		—		10,100
Total debt securities available-for-sale	258,523		3,845		1,188		261,180
Debt securities held-to-maturity:
Corporate bonds	27,180		585		—		27,765
Agency debentures	136,892		969		105		137,756
Municipal bonds	18,765		150		—		18,915
Agency mortgage-backed securities	4,373		409		—		4,782
Total debt securities held-to-maturity	187,210		2,113		105		189,218
Total debt securities	$	445,733	$	5,958	$	1,293	$	450,398



	December 31, 2018
(Dollars in thousands)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Estimated Fair Value
Debt securities available-for-sale:
Corporate bonds	$	152,691	$	33	$	1,661	$	151,063
Trust preferred securities	17,964		—		1,115		16,849
Non-agency collateralized loan obligations	393		—		3		390
Agency collateralized mortgage obligations	33,680		42		4		33,718
Agency mortgage-backed securities	21,575		37		348		21,264
Agency debentures	9,994		67		49		10,012
Total debt securities available-for-sale	236,297		179		3,180		233,296
Debt securities held-to-maturity:
Corporate bonds	27,184		353		22		27,515
Agency debentures	141,575		472		34		142,013
Municipal bonds	22,963		11		61		22,913
Agency mortgage-backed securities	4,409		—		27		4,382
Total debt securities held-to-maturity	196,131		836		144		196,823
Total debt securities	$	432,428	$	1,015	$	3,324	$	430,119

Schedule of investment securities held-to-maturity

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



	September 30, 2019
(Dollars in thousands)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Estimated Fair Value
Debt securities available-for-sale:
Corporate bonds	$	183,621	$	2,788	$	444	$	185,965
Trust preferred securities	18,060		—		706		17,354
Agency collateralized mortgage obligations	28,887		17		38		28,866
Agency mortgage-backed securities	18,469		426		—		18,895
Agency debentures	9,486		614		—		10,100
Total debt securities available-for-sale	258,523		3,845		1,188		261,180
Debt securities held-to-maturity:
Corporate bonds	27,180		585		—		27,765
Agency debentures	136,892		969		105		137,756
Municipal bonds	18,765		150		—		18,915
Agency mortgage-backed securities	4,373		409		—		4,782
Total debt securities held-to-maturity	187,210		2,113		105		189,218
Total debt securities	$	445,733	$	5,958	$	1,293	$	450,398



	December 31, 2018
(Dollars in thousands)	Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Estimated Fair Value
Debt securities available-for-sale:
Corporate bonds	$	152,691	$	33	$	1,661	$	151,063
Trust preferred securities	17,964		—		1,115		16,849
Non-agency collateralized loan obligations	393		—		3		390
Agency collateralized mortgage obligations	33,680		42		4		33,718
Agency mortgage-backed securities	21,575		37		348		21,264
Agency debentures	9,994		67		49		10,012
Total debt securities available-for-sale	236,297		179		3,180		233,296
Debt securities held-to-maturity:
Corporate bonds	27,184		353		22		27,515
Agency debentures	141,575		472		34		142,013
Municipal bonds	22,963		11		61		22,913
Agency mortgage-backed securities	4,409		—		27		4,382
Total debt securities held-to-maturity	196,131		836		144		196,823
Total debt securities	$	432,428	$	1,015	$	3,324	$	430,119

Interest income on investment securities

Interest income on investment securities was as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2019		2018		2019		2018
Taxable interest income	$	3,521	$	2,408	$	11,034	$	5,722
Non-taxable interest income	90		101		295		317
Dividend income	382		384		1,168		938
Total interest income on investment securities	$	3,993	$	2,893	$	12,497	$	6,977

Schedule of contractual maturities of debt securities

As of September 30, 2019, the contractual maturities of the debt securities were:



	September 30, 2019
	Available-for-Sale				Held-to-Maturity
(Dollars in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in less than one year	$	45,082	$	45,284	$	3,306	$	3,316
Due from one to five years	107,420		109,664		20,622		20,892
Due from five to ten years	40,983		40,816		127,952		128,597
Due after ten years	65,038		65,416		35,330		36,413
Total debt securities	$	258,523	$	261,180	$	187,210	$	189,218

Schedule of proceeds and realized gains and losses from investments securities

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



	Available-for-Sale				Held-to-Maturity				Available-for-Sale				Held-to-Maturity
	Three Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2019		2018		2019		2018		2019		2018		2019		2018
Proceeds from sales	$	—	$	—	$	—	$	—	$	4,993	$	2,037	$	—	$	—
Proceeds from calls	9,435		—		63,529		—		13,517		4,081		180,824		1,000
Total proceeds	$	9,435	$	—	$	63,529	$	—	$	18,510	$	6,118	$	180,824	$	1,000

Gross realized gains	$	134	$	—	$	72	$	—	$	260	$	6	$	86	$	3
Gross realized losses	—		—		—		—		—		3		—		—
Net realized gains	$	134	$	—	$	72	$	—	$	260	$	3	$	86	$	3

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

The following tables show the fair value and gross unrealized losses on temporarily impaired debt securities available-for-sale and held-to-maturity, by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of September 30, 2019 and December 31, 2018, respectively:



	September 30, 2019
	Less than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Debt securities available-for-sale:
Corporate bonds	$	—	$	—	$	20,660	$	444	$	20,660	$	444
Trust preferred securities	17,353		706		—		—		17,353		706
Agency collateralized mortgage obligations	22,319		29		2,720		9		25,039		38
Total debt securities available-for-sale	39,672		735		23,380		453		63,052		1,188
Debt securities held-to-maturity:
Agency debentures	31,922		105		—		—		31,922		105
Total debt securities held-to-maturity	31,922		105		—		—		31,922		105
Total temporarily impaired debt securities ⁽¹⁾	$	71,594	$	840	$	23,380	$	453	$	94,974	$	1,293


⁽¹⁾	The number of investment positions with unrealized losses totaled 20 for available-for-sale securities and 4 for held-to-maturity securities.



	December 31, 2018
	Less than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Debt securities available-for-sale:
Corporate bonds	$	110,200	$	789	$	22,954	$	872	$	133,154	$	1,661
Trust preferred securities	16,849		1,115		—		—		16,849		1,115
Non-agency collateralized loan obligations	—		—		390		3		390		3
Agency collateralized mortgage obligations	—		—		3,015		4		3,015		4
Agency mortgage-backed securities	5,851		51		8,690		297		14,541		348
Agency debentures	3,487		49		—		—		3,487		49
Total debt securities available-for-sale	136,387		2,004		35,049		1,176		171,436		3,180
Debt securities held-to-maturity:
Corporate bonds	3,978		22		—		—		3,978		22
Agency debentures	1,952		34		—		—		1,952		34
Municipal bonds	16,105		51		2,110		10		18,215		61
Agency mortgage-backed securities	4,382		27		—		—		4,382		27
Total debt securities held-to-maturity	26,417		134		2,110		10		28,527		144
Total temporarily impaired debt securities ⁽¹⁾	$	162,804	$	2,138	$	37,159	$	1,186	$	199,963	$	3,324


⁽¹⁾	The number of investment positions with unrealized losses totaled 78 for available-for-sale securities and 29 for held-to-maturity securities.

Loans and Leases (Tables)

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Schedule of loans receivable

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



	September 30, 2019
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate			Total
Loans and leases held-for-investment, before deferred fees and costs	$	3,361,987		$	989,769		$	1,660,564		$	6,012,320
Deferred loan costs (fees)	6,155			2,739			(4,534		)	4,360
Loans and leases held-for-investment, net of deferred fees and costs	3,368,142			992,508			1,656,030			6,016,680
Allowance for loan and lease losses	(1,851		)	(5,316		)	(6,207		)	(13,374		)
Loans and leases held-for-investment, net	$	3,366,291		$	987,192		$	1,649,823		$	6,003,306



	December 31, 2018
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate			Total
Loans and leases held-for-investment, before deferred fees and costs	$	2,864,094		$	781,836		$	1,482,148		$	5,128,078
Deferred loan costs (fees)	5,449			3,484			(4,138		)	4,795
Loans and leases held-for-investment, net of deferred fees and costs	2,869,543			785,320			1,478,010			5,132,873
Allowance for loan and lease losses	(1,942		)	(5,764		)	(5,502		)	(13,208		)
Loans and leases held-for-investment, net	$	2,867,601		$	779,556		$	1,472,508		$	5,119,665

Allowance for Loan and Lease Losses (Tables)

9 Months Ended

Sep. 30, 2019

Allowance for Loan and Lease Losses [Abstract]

Schedule of investment in loans by credit quality indicator

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



	September 30, 2019
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Pass	$	3,364,566	$	976,204	$	1,649,303	$	5,990,073
Special mention	3,392		9,745		6,467		19,604
Substandard	184		6,559		260		7,003
Loans and leases held-for-investment	$	3,368,142	$	992,508	$	1,656,030	$	6,016,680



	December 31, 2018
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Pass	$	2,864,774	$	767,540	$	1,475,793	$	5,108,107
Special mention	2,532		12,636		2,217		17,385
Substandard	2,237		5,144		—		7,381
Loans and leases held-for-investment	$	2,869,543	$	785,320	$	1,478,010	$	5,132,873

Schedule of change in allowance for loan losses

Changes in the allowance for loan and lease losses were as follows for the three months ended September 30, 2019 and 2018:



	Three Months Ended September 30, 2019
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate		Total
Balance, beginning of period	$	2,140		$	5,911		$	5,965	$	14,016
Provision (credit) for loan losses	(177		)	(672		)	242		(607		)
Charge-offs	(112		)	—			—		(112		)
Recoveries	—			77			—		77
Balance, end of period	$	1,851		$	5,316		$	6,207	$	13,374



	Three Months Ended September 30, 2018
(Dollars in thousands)	Private Banking		Commercial and Industrial			Commercial Real Estate		Total
Balance, beginning of period	$	1,557	$	8,786		$	4,978	$	15,321
Provision (credit) for loan losses	337		(838		)	267		(234		)
Charge-offs	—		(2,068		)	—		(2,068		)
Recoveries	—		564			—		564
Balance, end of period	$	1,894	$	6,444		$	5,245	$	13,583

Changes in the allowance for loan and lease losses were as follows for the nine months ended September 30, 2019 and 2018:



	Nine Months Ended September 30, 2019
(Dollars in thousands)	Private Banking			Commercial and Industrial			Commercial Real Estate		Total
Balance, beginning of period	$	1,942		$	5,764		$	5,502	$	13,208
Provision (credit) for loan losses	21			(2,422		)	705		(1,696		)
Charge-offs	(112		)	—			—		(112		)
Recoveries	—			1,974			—		1,974
Balance, end of period	$	1,851		$	5,316		$	6,207	$	13,374



	Nine Months Ended September 30, 2018
(Dollars in thousands)	Private Banking		Commercial and Industrial			Commercial Real Estate		Total
Balance, beginning of period	$	1,577	$	8,043		$	4,797	$	14,417
Provision (credit) for loan losses	317		(389		)	448		376
Charge-offs	—		(2,068		)	—		(2,068		)
Recoveries	—		858			—		858
Balance, end of period	$	1,894	$	6,444		$	5,245	$	13,583

Schedule of past due loans segregated by class of loan

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



	September 30, 2019
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total
Private banking	$	—	$	808	$	184	$	992	$	3,367,150	$	3,368,142
Commercial and industrial	—		—		—		—		992,508		992,508
Commercial real estate	—		—		—		—		1,656,030		1,656,030
Loans and leases held-for-investment	$	—	$	808	$	184	$	992	$	6,015,688	$	6,016,680



	December 31, 2018
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total
Private banking	$	1,040	$	173	$	2,000	$	3,213	$	2,866,330	$	2,869,543
Commercial and industrial	—		—		—		—		785,320		785,320
Commercial real estate	—		—		—		—		1,478,010		1,478,010
Loans and leases held-for-investment	$	1,040	$	173	$	2,000	$	3,213	$	5,129,660	$	5,132,873

Schedule of investment in loans considered to be impaired

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



	As of and for the Nine Months Ended September 30, 2019
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With a related allowance recorded:
Private banking	$	171	$	193	$	171	$	171	$	—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total with a related allowance recorded	171		193		171		171		—
Without a related allowance recorded:
Private banking	13		13		—		13		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total without a related allowance recorded	13		13		—		13		—
Total:
Private banking	184		206		171		184		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total	$	184	$	206	$	171	$	184	$	—



	As of and for the Twelve Months Ended December 31, 2018
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With a related allowance recorded:
Private banking	$	2,237	$	2,421	$	437	$	2,293	$	—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total with a related allowance recorded	2,237		2,421		437		2,293		—
Without a related allowance recorded:
Private banking	—		—		—		—		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total without a related allowance recorded	—		—		—		—		—
Total:
Private banking	2,237		2,421		437		2,293		—
Commercial and industrial	—		—		—		—		—
Commercial real estate	—		—		—		—		—
Total	$	2,237	$	2,421	$	437	$	2,293	$	—

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

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



	September 30, 2019
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Allowance for loan and lease losses:
Individually evaluated for impairment	$	171	$	—	$	—	$	171
Collectively evaluated for impairment	1,680		5,316		6,207		13,203
Total allowance for loan and lease losses	$	1,851	$	5,316	$	6,207	$	13,374
Loans and leases held-for-investment:
Individually evaluated for impairment	$	184	$	—	$	—	$	184
Collectively evaluated for impairment	3,367,958		992,508		1,656,030		6,016,496
Loans and leases held-for-investment	$	3,368,142	$	992,508	$	1,656,030	$	6,016,680



	December 31, 2018
(Dollars in thousands)	Private Banking		Commercial and Industrial		Commercial Real Estate		Total
Allowance for loan and lease losses:
Individually evaluated for impairment	$	437	$	—	$	—	$	437
Collectively evaluated for impairment	1,505		5,764		5,502		12,771
Total allowance for loan and lease losses	$	1,942	$	5,764	$	5,502	$	13,208
Loans and leases held-for-investment:
Individually evaluated for impairment	$	2,237	$	—	$	—	$	2,237
Collectively evaluated for impairment	2,867,306		785,320		1,478,010		5,130,636
Loans and leases held-for-investment	$	2,869,543	$	785,320	$	1,478,010	$	5,132,873

Schedule of loans classified as troubled debt restructuring

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



(Dollars in thousands)	September 30, 2019		December 31, 2018
Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring:
Performing loans accruing interest	$	—	$	—
Non-accrual loans	171		237
Total troubled debt restructurings	$	171	$	237

Operating Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Schedule of maturities of lease liabilities

Maturities of lease liabilities under noncancellable leases as of September 30, 2019, are as follows:



(Dollars in thousands)	Amount
September 30,
2020	$	2,594
2021	2,637
2022	2,621
2023	2,151
2024	2,046
Thereafter	20,709
Total undiscounted lease payments	$	32,758
Imputed interest	(8,721		)
Operating lease liability	$	24,037

Deposits (Tables)

9 Months Ended

Sep. 30, 2019

Deposits [Abstract]

Schedule of deposits

As of September 30, 2019 and December 31, 2018, deposits were comprised of the following:



	Interest Rate Range	Weighted Average Interest Rate		Balance
(Dollars in thousands)	September 30, 2019	September 30, 2019	December 31, 2018	September 30, 2019		December 31, 2018
Demand and savings accounts:
Noninterest-bearing checking accounts	—	—	—	$	312,285	$	258,268
Interest-bearing checking accounts	0.05 to 3.15%	1.83%	2.29%	1,333,189		778,131
Money market deposit accounts	0.10 to 3.25%	2.10%	2.45%	3,149,346		2,781,870
Total demand and savings accounts				4,794,820		3,818,269
Certificates of deposit	1.29 to 3.25%	2.50%	2.39%	1,299,785		1,232,192
Total deposits				$	6,094,605	$	5,050,461
Weighted average rate on interest-bearing accounts		2.13%	2.41%

Schedule of maturities of time deposits

The contractual maturity of certificates of deposit was as follows:



(Dollars in thousands)	September 30, 2019		December 31, 2018
12 months or less	$	1,082,409	$	992,468
12 months to 24 months	176,331		181,456
24 months to 36 months	41,045		58,268
Total	$	1,299,785	$	1,232,192

Schedule of interest expense on deposits by type of deposit

Interest expense on deposits was as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2019		2018		2019		2018
Interest-bearing checking accounts	$	5,795	$	3,267	$	15,303	$	7,464
Money market deposit accounts	18,870		12,428		53,608		30,263
Certificates of deposit	9,449		6,487		26,691		14,552
Total interest expense on deposits	$	34,114	$	22,182	$	95,602	$	52,279

Borrowings (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Schedule of borrowings

As of September 30, 2019 and December 31, 2018, borrowings were comprised of the following:



	September 30, 2019				December 31, 2018
(Dollars in thousands)	Interest Rate	Ending Balance		Maturity Date	Interest Rate	Ending Balance		Maturity Date
FHLB borrowings:
FHLB line of credit	2.08%	$	130,000	5/1/2020	2.62%	$	250,000	5/1/2019
Issued 9/3/2019	2.26%	150,000		12/2/2019		—
Issued 7/8/2019	2.50%	50,000		10/8/2019		—
Issued 12/31/2018		—			2.65%	65,000		1/2/2019
Issued 10/10/2018		—			2.54%	50,000		1/8/2019
Line of credit borrowings		—			5.47%	4,250		9/28/2019
Subordinated notes payable (net of debt issuance costs of $0 and $84)		—			5.75%	34,916		7/1/2019
Total borrowings, net		$	330,000			$	404,166

Schedule of interest expense on borrowings

Interest expense on borrowings was as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2019		2018		2019		2018
FHLB borrowings	$	1,302	$	853	$	6,222	$	3,743
Line of credit borrowings	—		16		68		69
Subordinated notes payable	—		554		1,090		1,661
Total interest expense on borrowings	$	1,302	$	1,423	$	7,380	$	5,473

- Definition

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

+ References

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

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

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

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

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

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

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

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

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

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

+ Details

Stock Transactions (Tables)

9 Months Ended

Sep. 30, 2019

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

Schedule of preferred and common shares, activity

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



	Number of Preferred Shares Outstanding	Number of Common Shares Outstanding
Balance, December 31, 2017	—	28,591,101
Issuance of preferred stock	40,250	—
Issuance of restricted common stock	—	396,113
Forfeitures of restricted common stock	—	(24,000	)
Exercise of stock options	—	127,700
Purchase of treasury stock	—	(169,936	)
Balance, September 30, 2018	40,250	28,920,978

Balance, December 31, 2018	40,250	28,878,674
Issuance of preferred stock	80,500	—
Issuance of restricted common stock	—	550,453
Forfeitures of restricted common stock	—	(74,355	)
Exercise of stock options	—	40,580
Purchase of treasury stock	—	(98,382	)
Balance, September 30, 2019	120,750	29,296,970

Regulatory Capital (Tables)

9 Months Ended

Sep. 30, 2019

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 September 30, 2019 and December 31, 2018:



	September 30, 2019
	Actual				For Capital Adequacy Purposes				To be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total risk-based capital ratio
Company	$	552,734	12.40	%	$	356,596	8.00	%	N/A		N/A
Bank	$	505,370	11.38	%	$	355,135	8.00	%	$	443,919	10.00	%
Tier 1 risk-based capital ratio
Company	$	541,505	12.15	%	$	267,447	6.00	%	N/A		N/A
Bank	$	491,401	11.07	%	$	266,352	6.00	%	$	355,135	8.00	%
Common equity tier 1 risk-based capital ratio
Company	$	427,084	9.58	%	$	200,585	4.50	%	N/A		N/A
Bank	$	491,401	11.07	%	$	199,764	4.50	%	$	288,547	6.50	%
Tier 1 leverage ratio
Company	$	541,505	7.91	%	$	273,931	4.00	%	N/A		N/A
Bank	$	491,401	7.20	%	$	273,036	4.00	%	$	341,295	5.00	%



	December 31, 2018
	Actual				For Capital Adequacy Purposes				To be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total risk-based capital ratio
Company	$	426,066	10.86	%	$	313,789	8.00	%	N/A		N/A
Bank	$	437,849	11.25	%	$	311,497	8.00	%	$	389,371	10.00	%
Tier 1 risk-based capital ratio
Company	$	414,808	10.58	%	$	235,342	6.00	%	N/A		N/A
Bank	$	424,418	10.90	%	$	233,622	6.00	%	$	311,497	8.00	%
Common equity tier 1 risk-based capital ratio
Company	$	378,117	9.64	%	$	176,506	4.50	%	N/A		N/A
Bank	$	424,418	10.90	%	$	175,217	4.50	%	$	253,091	6.50	%
Tier 1 leverage ratio
Company	$	414,808	7.28	%	$	227,851	4.00	%	N/A		N/A
Bank	$	424,418	7.49	%	$	226,762	4.00	%	$	283,453	5.00	%

Earnings Per Common Share (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Schedule of earnings per share, basic and diluted

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



	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2019		2018		2019		2018

Net income available to common shareholders	$	14,372	$	13,632	$	41,798	$	37,863
Weighted average common shares outstanding:
Basic	27,863,767		27,588,607		27,861,515		27,603,784
Restricted stock - dilutive	600,985		863,084		569,260		757,572
Stock options - dilutive	313,919		498,233		328,633		488,570
Diluted	28,778,671		28,949,924		28,759,408		28,849,926

Earnings per common share:
Basic	$	0.52	$	0.49	$	1.50	$	1.37
Diluted	$	0.50	$	0.47	$	1.45	$	1.31

Schedule of antidilutive securities excluded from computation of earnings per share



	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018
Anti-dilutive shares ⁽¹⁾	9,000	4,000	13,000	7,000


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

Derivatives and Hedging Activity (Tables)

9 Months Ended

Sep. 30, 2019

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 September 30, 2019 and December 31, 2018:



	Asset Derivatives			Liability Derivatives
	as of September 30, 2019			as of September 30, 2019
(Dollars in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate products	Other assets	$	—	Other liabilities	$	3,191

Derivatives not designated as hedging instruments:
Interest rate products	Other assets	73,030		Other liabilities	73,100
Equity products	Other assets	—		Other liabilities	109


Total	Other assets	$	73,030	Other liabilities	$	76,400



	Asset Derivatives			Liability Derivatives
	as of December 31, 2018			as of December 31, 2018
(Dollars in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate products	Other assets	$	1,384	Other liabilities	$	—

Derivatives not designated as hedging instruments:
Interest rate products	Other assets	25,523		Other liabilities	25,518


Total	Other assets	$	26,907	Other liabilities	$	25,518

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 September 30, 2019 and December 31, 2018:



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

(Dollars in thousands)							Financial Instruments			Cash Collateral Received
September 30, 2019	$	73,030	$	—	$	73,030	$	(248	)	$	—	$	72,782

December 31, 2018	$	26,907	$	—	$	26,907	$	(9,587	)	$	—	$	17,320

Schedule of offsetting derivative liabilities



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

(Dollars in thousands)							Financial Instruments			Cash Collateral Posted
September 30, 2019	$	76,400	$	—	$	76,400	$	(248	)	$	(75,789	)	$	363

December 31, 2018	$	25,518	$	—	$	25,518	$	(9,587	)	$	(3,941	)	$	11,990

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 September 30, 2019, were as follows:



(Dollars in thousands)	Notional Amount		Effective Rate ⁽¹⁾	Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months		Maturity Date	Remaining Term (in Months)
Interest rate products:
Issued 1/8/2018	$	50,000	2.21%	$	207	1/8/2021	15
Issued 5/30/2019	50,000		2.05%	125		6/1/2022	32
Issued 5/30/2019	50,000		2.03%	118		6/1/2023	44
Issued 5/30/2019	50,000		2.04%	123		6/1/2024	56
Total	$	200,000		$	573


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



		Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands)		2019			2018		2019			2018
Derivatives not designated as hedging instruments:	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives					Amount of Gain (Loss) Recognized in Income on Derivatives
Interest rate products	Non-interest income	$	(17	)	$	—	$	(59	)	$	22
Equity products	Non-interest income	(32		)	—		(109		)	—
Total		$	(49	)	$	—	$	(168	)	$	22

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 September 30,				Three Months Ended September 30,
(Dollars in thousands)		2019		2018		2019			2018
Derivatives designated as hedging instruments:	Location of Gain (Loss) Recognized in Income on Derivatives	Realized Gain (Loss) Recognized in Income on Derivatives				Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives
Interest rate products	Interest expense	$	156	$	412	$	(967	)	$	157



		Nine Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)		2019		2018		2019			2018
Derivatives designated as hedging instruments:	Location of Gain (Loss) Recognized in Income on Derivatives	Realized Gain (Loss) Recognized in Income on Derivatives				Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives
Interest rate products	Interest expense	$	1,277	$	952	$	(3,293	)	$	1,439

Disclosures About Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

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 September 30, 2019 and December 31, 2018:



	September 30, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets / Liabilities at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds	$	—	$	185,965	$	—	$	185,965
Trust preferred securities	—		17,354		—		17,354
Agency collateralized mortgage obligations	—		28,866		—		28,866
Agency mortgage-backed securities	—		18,895		—		18,895
Agency debentures	—		10,100		—		10,100
Equity securities	4,807		—		—		4,807
Interest rate swaps	—		73,030		—		73,030
Total financial assets	4,807		334,210		—		339,017

Financial liabilities:
Interest rate swaps	—		76,291		—		76,291
Equity swaps	109		—		—		109
Total financial liabilities	$	109	$	76,291	$	—	$	76,400



	December 31, 2018
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets / Liabilities at Fair Value
Financial assets:
Debt securities available-for-sale:
Corporate bonds	$	—	$	151,063	$	—	$	151,063
Trust preferred securities	—		16,849		—		16,849
Non-agency collateralized loan obligations	—		390		—		390
Agency collateralized mortgage obligations	—		33,718		—		33,718
Agency mortgage-backed securities	—		21,264		—		21,264
Agency debentures	—		10,012		—		10,012
Equity securities	12,661		—		—		12,661
Interest rate swaps	—		26,907		—		26,907
Total financial assets	12,661		260,203		—		272,864

Financial liabilities:
Interest rate swaps	—		25,518		—		25,518
Acquisition earn out liability	—		—		2,920		2,920
Total financial liabilities	$	—	$	25,518	$	2,920	$	28,438

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 September 30, 2019 and December 31, 2018:



	September 30, 2019
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets at Fair Value
Loans measured for impairment, net	$	—	$	—	$	13	$	13
Other real estate owned	—		—		4,250		4,250
Total assets	$	—	$	—	$	4,263	$	4,263



	December 31, 2018
(Dollars in thousands)	Level 1		Level 2		Level 3		Total Assets at Fair Value
Loans measured for impairment, net	$	—	$	—	$	1,800	$	1,800
Other real estate owned	—		—		3,424		3,424
Total assets	$	—	$	—	$	5,224	$	5,224

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 September 30, 2019 and December 31, 2018:



	September 30, 2019
(Dollars in thousands)	Fair Value		Valuation Techniques ⁽¹⁾	Significant Unobservable Inputs	Weighted Average Discount Rate
Loans measured for impairment, net	$	13	Collateral	Appraisal value and discount due to salability conditions	—%

Other real estate owned	$	4,250	Collateral	Appraisal value and discount due to salability conditions	18%


⁽¹⁾	Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow of ongoing operations if the loan is not collateral dependent.



	December 31, 2018
(Dollars in thousands)	Fair Value		Valuation Techniques ⁽¹⁾	Significant Unobservable Inputs	Weighted Average Multiple/ Discount Rate
Acquisition earn out liability	$	2,920	Income approach	Run-rate revenue multiple; client retention	1.6 times

Loans measured for impairment, net	$	1,800	Collateral	Appraisal value and discount due to salability conditions	16%

Other real estate owned	$	3,424	Collateral	Appraisal value and discount due to salability conditions	10%


⁽¹⁾	Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow of ongoing operations if the loan is not collateral dependent.

Schedule of fair and carrying value of financial assets and liabilities

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



		September 30, 2019				December 31, 2018
(Dollars in thousands)	Fair Value Level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	1	$	383,948	$	383,948	$	189,985	$	189,985
Debt securities available-for-sale	2	261,180		261,180		233,296		233,296
Debt securities held-to-maturity	2	187,210		189,218		196,131		196,823
Equity securities	1	4,807		4,807		12,661		12,661
Federal Home Loan Bank stock	2	15,524		15,524		24,671		24,671
Loans and leases held-for-investment, net	3	6,003,306		5,994,960		5,119,665		5,119,562
Accrued interest receivable	2	22,157		22,157		20,702		20,702
Investment management fees receivable, net	2	7,453		7,453		7,299		7,299
Bank owned life insurance	2	69,607		69,607		68,309		68,309
Other real estate owned	3	4,250		4,250		3,424		3,424
Interest rate swaps	2	73,030		73,030		26,907		26,907

Financial liabilities:
Deposits	2	$	6,094,605	$	6,108,128	$	5,050,461	$	5,048,079
Borrowings, net	2	330,000		330,020		404,166		404,084
Acquisition earn out liability	3	—		—		2,920		2,920
Interest rate swaps	2	76,291		76,291		25,518		25,518
Equity swaps	1	109		109		—		—

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

9 Months Ended

Sep. 30, 2019

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 September 30,
	2019									2018
(Dollars in thousands)	Debt Securities			Derivatives			Total			Debt Securities			Derivatives			Total
Balance, beginning of period	$	1,230		$	(1,590	)	$	(360	)	$	(833	)	$	1,878		$	1,045
Change in unrealized holding gains (losses)	787			(736		)	51			(192		)	120			(72		)
Gains reclassified from other comprehensive income	(101		)	(120		)	(221		)	—			(316		)	(316		)
Net other comprehensive income (loss)	686			(856		)	(170		)	(192		)	(196		)	(388		)
Balance, end of period	$	1,916		$	(2,446	)	$	(530	)	$	(1,025	)	$	1,682		$	657



	Nine Months Ended September 30,
	2019									2018
(Dollars in thousands)	Debt Securities			Derivatives			Total			Debt Securities			Derivatives			Total
Balance, beginning of period	$	(2,363	)	$	1,032		$	(1,331	)	$	172		$	1,074		$	1,246
Change in unrealized holding gains (losses)	4,477			(2,506		)	1,971			(1,517		)	1,103			(414		)
Gains reclassified from other comprehensive income	(198		)	(972		)	(1,170		)	(5		)	(730		)	(735		)
Reclassification for equity securities under ASU 2016-01	—			—			—			286			—			286
Reclassification for certain income tax effects under ASU 2018-02	—			—			—			39			235			274
Net other comprehensive income (loss)	4,279			(3,478		)	801			(1,197		)	608			(589		)
Balance, end of period	$	1,916		$	(2,446	)	$	(530	)	$	(1,025	)	$	1,682		$	657

Segments (Tables)

9 Months Ended

Sep. 30, 2019

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)	September 30, 2019			December 31, 2018
Assets:
Bank	$	7,113,983		$	5,947,165
Investment management	92,283			92,894
Parent and other	(7,817		)	(4,404		)
Total assets	$	7,198,449		$	6,035,655



	Three Months Ended September 30, 2019												Three Months Ended September 30, 2018
(Dollars in thousands)	Bank			Investment Management			Parent and Other			Consolidated			Bank			Investment Management		Parent and Other			Consolidated
Income statement data:
Interest income	$	67,720		$	—		$	12		$	67,732		$	52,354		$	—	$	70		$	52,424
Interest expense	35,455			—			(39		)	35,416			23,038			—		567			23,605
Net interest income (loss)	32,265			—			51			32,316			29,316			—		(497		)	28,819
Provision (credit) for loan and lease losses	(607		)	—			—			(607		)	(234		)	—		—			(234		)
Net interest income (loss) after provision for loan and lease losses	32,872			—			51			32,923			29,550			—		(497		)	29,053
Non-interest income:
Investment management fees	—			9,016			(114		)	8,902			—			9,914		(86		)	9,828
Net gain on the sale and call of debt securities	206			—			—			206			—			—		—			—
Other non-interest income	5,113			(9		)	31			5,135			2,850			—		73			2,923
Total non-interest income	5,319			9,007			(83		)	14,243			2,850			9,914		(13		)	12,751
Non-interest expense:
Intangible amortization expense	—			502			—			502			—			502		—			502
Other non-interest expense	18,949			8,186			136			27,271			17,002			8,173		9			25,184
Total non-interest expense	18,949			8,688			136			27,773			17,002			8,675		9			25,686
Income (loss) before tax	19,242			319			(168		)	19,393			15,398			1,239		(519		)	16,118
Income tax expense (benefit)	3,142			3			(86		)	3,059			1,676			282		(151		)	1,807
Net income (loss)	$	16,100		$	316		$	(82	)	$	16,334		$	13,722		$	957	$	(368	)	$	14,311



	Nine Months Ended September 30, 2019											Nine Months Ended September 30, 2018
(Dollars in thousands)	Bank			Investment Management		Parent and Other			Consolidated			Bank		Investment Management		Parent and Other			Consolidated
Income statement data:
Interest income	$	196,862		$	—	$	111		$	196,973		$	141,424	$	—	$	200		$	141,624
Interest expense	101,891			—		1,091			102,982			56,027		—		1,725			57,752
Net interest income (loss)	94,971			—		(980		)	93,991			85,397		—		(1,525		)	83,872
Provision (credit) for loan and lease losses	(1,696		)	—		—			(1,696		)	376		—		—			376
Net interest income (loss) after provision for loan and lease losses	96,667			—		(980		)	95,687			85,021		—		(1,525		)	83,496
Non-interest income:
Investment management fees	—			27,912		(332		)	27,580			—		28,621		(199		)	28,422
Net gain on the sale and call of debt securities	346			—		—			346			6		—		—			6
Other non-interest income	10,467			17		881			11,365			7,875		1		38			7,914
Total non-interest income	10,813			27,929		549			39,291			7,881		28,622		(161		)	36,342
Non-interest expense:
Intangible amortization expense	—			1,506		—			1,506			—		1,465		—			1,465
Other non-interest expense	56,872			23,174		478			80,524			49,011		23,988		390			73,389
Total non-interest expense	56,872			24,680		478			82,030			49,011		25,453		390			74,854
Income (loss) before tax	50,608			3,249		(909		)	52,948			43,891		3,169		(2,076		)	44,984
Income tax expense (benefit)	6,825			830		(296		)	7,359			5,485		786		(591		)	5,680
Net income (loss)	$	43,783		$	2,419	$	(613	)	$	45,589		$	38,406	$	2,383	$	(1,485	)	$	39,304

Basis of Information and Summary of Significant Accounting Policies - Narrative (Details)	9 Months Ended
	Sep. 30, 2019 USD ($) offices portfolio subsidiary	Sep. 30, 2018 USD ($)	Jan. 01, 2019 USD ($) offices	Dec. 31, 2018 USD ($)
Significant Accounting Policies [Line Items]
Number of wholly owned subsidiaries \| subsidiary	3
Number of loan portfolios \| portfolio	3
Bad debt expense	$ 0	$ 0
Allowance for uncollectible accounts	$ 0			$ 0
Number of office spaces with operating leases \| offices	6		6
ASU 2016-02
Significant Accounting Policies [Line Items]
Impact of adoption of ASU			$ 0
Maximum
Significant Accounting Policies [Line Items]
Original maturity of short-term investments (in days)	90 days
Estimated useful lives of intangible assets (in years)	25 years
Estimated useful lives of office properties and equipment (in years)	10 years
Minimum
Significant Accounting Policies [Line Items]
Past due period for loans (in days)	90 days
Consecutive period loan is current (in months)	6 months
Estimated useful lives of intangible assets (in years)	4 years
Estimated useful lives of office properties and equipment (in years)	3 years
Bank
Significant Accounting Policies [Line Items]
Number of wholly owned subsidiaries \| subsidiary	2
Number of representative offices, additional to main office \| offices	4

Investment Securities - Investment Types (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt securities available-for-sale:
Amortized Cost	$ 258,523	$ 236,297
Gross Unrealized Appreciation	3,845	179
Gross Unrealized Depreciation	1,188	3,180
Debt securities available-for-sale	261,180	233,296
Debt securities held-to-maturity:
Amortized Cost	187,210	196,131
Gross Unrealized Appreciation	2,113	836
Gross Unrealized Depreciation	105	144
Estimated Fair Value	189,218	196,823
Amortized Cost	445,733	432,428
Gross Unrealized Appreciation	5,958	1,015
Gross Unrealized Depreciation	1,293	3,324
Estimated Fair Value	450,398	430,119
Corporate bonds
Debt securities available-for-sale:
Amortized Cost	183,621	152,691
Gross Unrealized Appreciation	2,788	33
Gross Unrealized Depreciation	444	1,661
Debt securities available-for-sale	185,965	151,063
Debt securities held-to-maturity:
Amortized Cost	27,180	27,184
Gross Unrealized Appreciation	585	353
Gross Unrealized Depreciation	0	22
Estimated Fair Value	27,765	27,515
Trust preferred securities
Debt securities available-for-sale:
Amortized Cost	18,060	17,964
Gross Unrealized Appreciation	0	0
Gross Unrealized Depreciation	706	1,115
Debt securities available-for-sale	17,354	16,849
Non-agency collateralized loan obligations
Debt securities available-for-sale:
Amortized Cost		393
Gross Unrealized Appreciation		0
Gross Unrealized Depreciation		3
Debt securities available-for-sale		390
Agency collateralized mortgage obligations
Debt securities available-for-sale:
Amortized Cost	28,887	33,680
Gross Unrealized Appreciation	17	42
Gross Unrealized Depreciation	38	4
Debt securities available-for-sale	28,866	33,718
Agency mortgage-backed securities
Debt securities available-for-sale:
Amortized Cost	18,469	21,575
Gross Unrealized Appreciation	426	37
Gross Unrealized Depreciation	0	348
Debt securities available-for-sale	18,895	21,264
Debt securities held-to-maturity:
Amortized Cost	4,373	4,409
Gross Unrealized Appreciation	409	0
Gross Unrealized Depreciation	0	27
Estimated Fair Value	4,782	4,382
Agency debentures
Debt securities available-for-sale:
Amortized Cost	9,486	9,994
Gross Unrealized Appreciation	614	67
Gross Unrealized Depreciation	0	49
Debt securities available-for-sale	10,100	10,012
Debt securities held-to-maturity:
Amortized Cost	136,892	141,575
Gross Unrealized Appreciation	969	472
Gross Unrealized Depreciation	105	34
Estimated Fair Value	137,756	142,013
Municipal bonds
Debt securities held-to-maturity:
Amortized Cost	18,765	22,963
Gross Unrealized Appreciation	150	11
Gross Unrealized Depreciation	0	61
Estimated Fair Value	$ 18,915	$ 22,913

Investment Securities - Interest Income on Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Taxable interest income	$ 3,521	$ 2,408	$ 11,034	$ 5,722
Non-taxable interest income	90	101	295	317
Dividend income	382	384	1,168	938
Total interest income on investment securities	$ 3,993	$ 2,893	$ 12,497	$ 6,977

Investment Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Available-for-sale Securities, Debt Maturities, Amortized Cost
Due in less than one year	$ 45,082
Due from one to five years	107,420
Due from five to ten years	40,983
Due after ten years	65,038
Amortized Cost	258,523	$ 236,297
Available-for-sale Securities, Debt Maturities, Estimated Fair Value
Due in less than one year	45,284
Due from one to five years	109,664
Due from five to ten years	40,816
Due after ten years	65,416
Estimated Fair Value	261,180	233,296
Held-to-maturity Securities, Debt Maturities, Amortized Cost
Due in less than one year	3,306
Due from one to five years	20,622
Due from five to ten years	127,952
Due after ten years	35,330
Amortized Cost	187,210	196,131
Held-to-maturity Securities, Debt Maturities, Estimated Fair Value
Due in less than one year	3,316
Due from one to five years	20,892
Due from five to ten years	128,597
Due after ten years	36,413
Estimated Fair Value	$ 189,218	$ 196,823

Investment Securities - Narrative (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities with a contractual maturity due after ten years	$ 65,416,000
Floating rate available-for-sale securities with a contractual maturity due after ten years	$ 38,600,000
Percent of floating rate available-for-sale securities with a contractual maturity due after ten years	58.90%
Held-to-maturity securities, debt maturities due from five to ten years	$ 127,952,000
Held-to-maturity securities, debt maturities due from five to ten years, callable	20,800,000
Debt securities trading	0	$ 0
Equity securities	4,807,000	12,661,000
Federal Home Loan Bank stock	15,524,000	$ 24,671,000
Federal Home Loan Bank
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities available to be pledged as collateral for borrowings	$ 3,000,000

Investment Securities - Gains and Losses on Sales and Calls of Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Proceeds from sale of available-for-sale securities	$ 0	$ 0	$ 4,993	$ 2,037
Proceeds from call of available-for-sale securities	9,435	0	13,517	4,081
Total proceeds from sale and call of available-for-sale securities	9,435	0	18,510	6,118
Gross realized gains on available-for-sale securities	134	0	260	6
Gross realized losses on available-for-sale securities	0	0	0	3
Net realized gains on sale and call of available-for-sale securities	134	0	260	3
Proceeds from sale of held-to-maturity securities	0	0	0	0
Proceeds from call of held-to-maturity securities	63,529	0	180,824	1,000
Total proceeds from sale and call of held-to-maturity securities	63,529	0	180,824	1,000
Gross realized gains on held-to-maturity securities	72	0	86	3
Gross realized losses on held-to-maturity securities	0	0	0	0
Net realized gains on sale and call of held-to-maturity securities	$ 72	$ 0	$ 86	$ 3

Investment Securities - Unrealized Losses (Details) $ in Thousands	Sep. 30, 2019 USD ($) position	Dec. 31, 2018 USD ($) position
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months	$ 39,672	$ 136,387
12 Months or More	23,380	35,049
Total	63,052	171,436
Unrealized losses, Debt securities available-for-sale
Less than 12 Months	735	2,004
12 Months or More	453	1,176
Total	1,188	3,180
Fair value, Debt securities held-to-maturity
Less than 12 Months	31,922	26,417
12 Months or More	0	2,110
Total	31,922	28,527
Unrealized losses, Debt securities held-to-maturity
Less than 12 Months	105	134
12 Months or More	0	10
Total	105	144
Less than 12 months, fair value, total impaired securities	71,594	162,804
Less than 12 months, unrealized losses, total impaired securities	840	2,138
12 months or more, fair value, total impaired securities	23,380	37,159
12 months or more, unrealized losses, total impaired securities	453	1,186
Total, fair value, total impaired securities	94,974	199,963
Total, unrealized losses, total impaired securities	$ 1,293	$ 3,324
Available-for-sale, number of positions in an unrealized loss position \| position	20	78
Held-to-maturity, number of positions in an unrealized loss position \| position	4	29
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months	$ 0	$ 110,200
12 Months or More	20,660	22,954
Total	20,660	133,154
Unrealized losses, Debt securities available-for-sale
Less than 12 Months	0	789
12 Months or More	444	872
Total	444	1,661
Fair value, Debt securities held-to-maturity
Less than 12 Months		3,978
12 Months or More		0
Total		3,978
Unrealized losses, Debt securities held-to-maturity
Less than 12 Months		22
12 Months or More		0
Total		22
Trust preferred securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months	17,353	16,849
12 Months or More	0	0
Total	17,353	16,849
Unrealized losses, Debt securities available-for-sale
Less than 12 Months	706	1,115
12 Months or More	0	0
Total	706	1,115
Non-agency collateralized loan obligations
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months		0
12 Months or More		390
Total		390
Unrealized losses, Debt securities available-for-sale
Less than 12 Months		0
12 Months or More		3
Total		3
Agency collateralized mortgage obligations
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months	22,319	0
12 Months or More	2,720	3,015
Total	25,039	3,015
Unrealized losses, Debt securities available-for-sale
Less than 12 Months	29	0
12 Months or More	9	4
Total	38	4
Agency mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months		5,851
12 Months or More		8,690
Total		14,541
Unrealized losses, Debt securities available-for-sale
Less than 12 Months		51
12 Months or More		297
Total		348
Fair value, Debt securities held-to-maturity
Less than 12 Months		4,382
12 Months or More		0
Total		4,382
Unrealized losses, Debt securities held-to-maturity
Less than 12 Months		27
12 Months or More		0
Total		27
Agency debentures
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months		3,487
12 Months or More		0
Total		3,487
Unrealized losses, Debt securities available-for-sale
Less than 12 Months		49
12 Months or More		0
Total		49
Fair value, Debt securities held-to-maturity
Less than 12 Months	31,922	1,952
12 Months or More	0	0
Total	31,922	1,952
Unrealized losses, Debt securities held-to-maturity
Less than 12 Months	105	34
12 Months or More	0	0
Total	$ 105	34
Municipal bonds
Fair value, Debt securities held-to-maturity
Less than 12 Months		16,105
12 Months or More		2,110
Total		18,215
Unrealized losses, Debt securities held-to-maturity
Less than 12 Months		51
12 Months or More		10
Total		$ 61

Loans and Leases - Loans and Leases by Class (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, net of deferred fees and costs	$ 6,016,680		$ 5,132,873
Allowance for loan and lease losses	(13,374)	$ (14,016)	(13,208)	$ (13,583)	$ (15,321)	$ (14,417)
Loans and leases held-for-investment, net	6,003,306		5,119,665
Loans receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, before deferred fees and costs	6,012,320		5,128,078
Deferred loan costs (fees)	4,360		4,795
Loans and leases held-for-investment, net of deferred fees and costs	6,016,680		5,132,873
Allowance for loan and lease losses	(13,374)		(13,208)
Loans and leases held-for-investment, net	6,003,306		5,119,665
Private Banking
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, net of deferred fees and costs	3,368,142		2,869,543
Allowance for loan and lease losses	(1,851)	(2,140)	(1,942)	(1,894)	(1,557)	(1,577)
Private Banking \| Loans receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, before deferred fees and costs	3,361,987		2,864,094
Deferred loan costs (fees)	6,155		5,449
Loans and leases held-for-investment, net of deferred fees and costs	3,368,142		2,869,543
Allowance for loan and lease losses	(1,851)		(1,942)
Loans and leases held-for-investment, net	3,366,291		2,867,601
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, net of deferred fees and costs	992,508		785,320
Allowance for loan and lease losses	(5,316)	(5,911)	(5,764)	(6,444)	(8,786)	(8,043)
Commercial and Industrial \| Loans receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, before deferred fees and costs	989,769		781,836
Deferred loan costs (fees)	2,739		3,484
Loans and leases held-for-investment, net of deferred fees and costs	992,508		785,320
Allowance for loan and lease losses	(5,316)		(5,764)
Loans and leases held-for-investment, net	987,192		779,556
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, net of deferred fees and costs	1,656,030		1,478,010
Allowance for loan and lease losses	(6,207)	$ (5,965)	(5,502)	$ (5,245)	$ (4,978)	$ (4,797)
Commercial Real Estate \| Loans receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases held-for-investment, before deferred fees and costs	1,660,564		1,482,148
Deferred loan costs (fees)	(4,534)		(4,138)
Loans and leases held-for-investment, net of deferred fees and costs	1,656,030		1,478,010
Allowance for loan and lease losses	(6,207)		(5,502)
Loans and leases held-for-investment, net	$ 1,649,823		$ 1,472,508

Loans and Leases - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused commitments	$ 4,540,000		$ 3,540,000
Reserve for losses on unfunded commitments	595		542
Loans in the process of origination	36,100		64,400
Standby letters of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unused commitments	71,100		$ 60,000
Standby letters of credit drawn	$ 135	$ 6,000

Allowance for Loan and Lease Losses - Narrative (Details)	9 Months Ended		12 Months Ended
	Sep. 30, 2019 USD ($) portfolio	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
Number of loan portfolios \| portfolio	3
Impaired loans	$ 184,000		$ 2,237,000
Interest income on impaired loans	0		0
Loans 90 days or more past due and still accruing	0		0
Related allowance on impaired loans	171,000		437,000
Unused commitments for loans modified as TDRs	0		0
Payment defaults for loans modified as TDRs	0
Real estate acquired through foreclosure	4,300,000		3,400,000
Loan foreclosures and repossessions	1,492,000	$ 0
Proceeds from sale of property from other real estate owned	169,000
Loss from sale of property from other real estate owned	97,000
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]
Impaired loans	$ 184,000		2,237,000
Related allowance on impaired loans	$ 171,000		$ 437,000
Concentration risk, percentage \| Cash, marketable securities or cash value life insurance collateral risk \| Private Banking
Financing Receivable, Credit Quality Indicator [Line Items]
Percentage of private banking loans secured by cash and marketable securities	97.20%		96.70%

Allowance for Loan and Lease Losses - Credit Quality Indicator (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	$ 6,016,680	$ 5,132,873
Private Banking
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	3,368,142	2,869,543
Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	992,508	785,320
Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	1,656,030	1,478,010
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	5,990,073	5,108,107
Pass \| Private Banking
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	3,364,566	2,864,774
Pass \| Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	976,204	767,540
Pass \| Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	1,649,303	1,475,793
Special mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	19,604	17,385
Special mention \| Private Banking
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	3,392	2,532
Special mention \| Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	9,745	12,636
Special mention \| Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	6,467	2,217
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	7,003	7,381
Substandard \| Private Banking
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	184	2,237
Substandard \| Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	6,559	5,144
Substandard \| Commercial Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases held-for-investment	$ 260	$ 0

Allowance for Loan and Lease Losses - Changes in Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period	$ 14,016	$ 15,321	$ 13,208	$ 14,417
Provision (credit) for loan and lease losses	(607)	(234)	(1,696)	376
Charge-offs	(112)	(2,068)	(112)	(2,068)
Recoveries	77	564	1,974	858
Balance, end of period	13,374	13,583	13,374	13,583
Private Banking
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period	2,140	1,557	1,942	1,577
Provision (credit) for loan and lease losses	(177)	337	21	317
Charge-offs	(112)	0	(112)	0
Recoveries	0	0	0	0
Balance, end of period	1,851	1,894	1,851	1,894
Commercial and Industrial
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period	5,911	8,786	5,764	8,043
Provision (credit) for loan and lease losses	(672)	(838)	(2,422)	(389)
Charge-offs	0	(2,068)	0	(2,068)
Recoveries	77	564	1,974	858
Balance, end of period	5,316	6,444	5,316	6,444
Commercial Real Estate
Allowance for Loan and Lease Losses [Roll Forward]
Balance, beginning of period	5,965	4,978	5,502	4,797
Provision (credit) for loan and lease losses	242	267	705	448
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Balance, end of period	$ 6,207	$ 5,245	$ 6,207	$ 5,245

Allowance for Loan and Lease Losses - Analysis of Past Due Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	$ 992	$ 3,213
Current	6,015,688	5,129,660
Loans and leases held-for-investment, net of deferred fees and costs	6,016,680	5,132,873
Private Banking
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	992	3,213
Current	3,367,150	2,866,330
Loans and leases held-for-investment, net of deferred fees and costs	3,368,142	2,869,543
Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
Current	992,508	785,320
Loans and leases held-for-investment, net of deferred fees and costs	992,508	785,320
Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
Current	1,656,030	1,478,010
Loans and leases held-for-investment, net of deferred fees and costs	1,656,030	1,478,010
30-59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	1,040
30-59 Days Past Due \| Private Banking
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	1,040
30-59 Days Past Due \| Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
30-59 Days Past Due \| Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
60-89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	808	173
60-89 Days Past Due \| Private Banking
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	808	173
60-89 Days Past Due \| Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
60-89 Days Past Due \| Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	184	2,000
90 Days or More Past Due \| Private Banking
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	184	2,000
90 Days or More Past Due \| Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
90 Days or More Past Due \| Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	$ 0	$ 0

Allowance for Loan and Lease Losses - Impaired Loans (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Recorded Investment
With a related allowance	$ 171	$ 2,237
Without a related allowance	13	0
Total	184	2,237
Unpaid Principal Balance
With a related allowance	193	2,421
Without a related allowance	13	0
Total	206	2,421
Related Allowance	171	437
Average Recorded Investment
With a related allowance	171	2,293
Without a related allowance	13	0
Total	184	2,293
Interest Income Recognized
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Private Banking
Recorded Investment
With a related allowance	171	2,237
Without a related allowance	13	0
Total	184	2,237
Unpaid Principal Balance
With a related allowance	193	2,421
Without a related allowance	13	0
Total	206	2,421
Related Allowance	171	437
Average Recorded Investment
With a related allowance	171	2,293
Without a related allowance	13	0
Total	184	2,293
Interest Income Recognized
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Commercial and Industrial
Recorded Investment
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Unpaid Principal Balance
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Related Allowance	0	0
Average Recorded Investment
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Interest Income Recognized
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Commercial Real Estate
Recorded Investment
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Unpaid Principal Balance
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Related Allowance	0	0
Average Recorded Investment
With a related allowance	0	0
Without a related allowance	0	0
Total	0	0
Interest Income Recognized
With a related allowance	0	0
Without a related allowance	0	0
Total	$ 0	$ 0

Allowance for Loan and Lease Losses - Allowance (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Allowance for loan and lease losses:
Individually evaluated for impairment	$ 171	$ 437
Collectively evaluated for impairment	13,203	12,771
Total allowance for loan and lease losses	13,374	13,208
Loans and leases held-for-investment:
Individually evaluated for impairment	184	2,237
Collectively evaluated for impairment	6,016,496	5,130,636
Loans and leases held-for-investment, net of deferred fees and costs	6,016,680	5,132,873
Private Banking
Allowance for loan and lease losses:
Individually evaluated for impairment	171	437
Collectively evaluated for impairment	1,680	1,505
Total allowance for loan and lease losses	1,851	1,942
Loans and leases held-for-investment:
Individually evaluated for impairment	184	2,237
Collectively evaluated for impairment	3,367,958	2,867,306
Loans and leases held-for-investment, net of deferred fees and costs	3,368,142	2,869,543
Commercial and Industrial
Allowance for loan and lease losses:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	5,316	5,764
Total allowance for loan and lease losses	5,316	5,764
Loans and leases held-for-investment:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	992,508	785,320
Loans and leases held-for-investment, net of deferred fees and costs	992,508	785,320
Commercial Real Estate
Allowance for loan and lease losses:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	6,207	5,502
Total allowance for loan and lease losses	6,207	5,502
Loans and leases held-for-investment:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	1,656,030	1,478,010
Loans and leases held-for-investment, net of deferred fees and costs	$ 1,656,030	$ 1,478,010

Allowance for Loan and Lease Losses - Troubled Debt Restructuring (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded investment	$ 171	$ 237
Performing loans accruing interest
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded investment	0	0
Non-accrual loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded investment	$ 171	$ 237

Operating Leases - Narrative (Details) $ in Thousands	3 Months Ended	9 Months Ended
Operating Leases - Narrative (Details) $ in Thousands	Sep. 30, 2019 USD ($) offices	Sep. 30, 2019 USD ($) offices	Jan. 01, 2019 offices
Lessee, Lease, Description [Line Items]
Number of office spaces with operating leases \| offices	6	6	6
Operating lease cost \| $	$ 805	$ 2,000
Weighted average remaining lease term	14 years 1 month 2 days	14 years 1 month 2 days
Weighted average discount rate	4.25%	4.25%
Minimum
Lessee, Lease, Description [Line Items]
Renewal term	1 year	1 year
Maximum
Lessee, Lease, Description [Line Items]
Renewal term	5 years	5 years

Operating Leases - Maturities of Lease Liabilities (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Leases [Abstract]
2020	$ 2,594
2021	2,637
2022	2,621
2022	2,151
2024	2,046
Thereafter	20,709
Total undiscounted lease payments	32,758
Imputed interest	(8,721)
Operating lease liability	$ 24,037

Deposits - Schedule of Deposits by Type (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Interest Rate Range Domestic Deposit Liabilities [Abstract]
Interest-bearing checking accounts, interest rate minimum	0.05%
Interest-bearing checking accounts, interest rate maximum	3.15%
Money market deposit accounts, interest rate minimum	0.10%
Money market deposit accounts, interest rate maximum	3.25%
Certificates of deposit, interest rate minimum	1.29%
Certificates of deposit, interest rate maximum	3.25%
Weighted Average Interest Rate
Interest-bearing checking accounts	1.83%	2.29%
Money market deposit accounts	2.10%	2.45%
Certificates of deposit	2.50%	2.39%
Weighted average rate on interest-bearing accounts	2.13%	2.41%
Demand and savings accounts:
Noninterest-bearing checking accounts	$ 312,285	$ 258,268
Interest-bearing checking accounts	1,333,189	778,131
Money market deposit accounts	3,149,346	2,781,870
Total demand and savings accounts	4,794,820	3,818,269
Certificates of deposit	1,299,785	1,232,192
Total deposits	$ 6,094,605	$ 5,050,461

Deposits - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Deposits [Abstract]
Brokered deposits	$ 618.1	$ 641.4
Reciprocal non-brokered	883.6	565.3
Certificates of deposit, $100,000 or more, excluding brokered and reciprocal	552.3	569.8
Certificates of deposit, $250,000 or more, excluding brokered and reciprocal	$ 223.7	$ 230.0

Deposits - Contractual Maturities of Time Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Time Deposits, Rolling Year Maturity [Abstract]
12 months or less	$ 1,082,409	$ 992,468
12 months to 24 months	176,331	181,456
24 months to 36 months	41,045	58,268
Total	$ 1,299,785	$ 1,232,192

Deposits - Interest Expense on Deposits by Type (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest Expense, Deposits [Abstract]
Interest-bearing checking accounts	$ 5,795	$ 3,267	$ 15,303	$ 7,464
Money market deposit accounts	18,870	12,428	53,608	30,263
Certificates of deposit	9,449	6,487	26,691	14,552
Total interest expense on deposits	$ 34,114	$ 22,182	$ 95,602	$ 52,279

Borrowings - Schedule of Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total debt	$ 330,000	$ 404,166
Subordinated debt \| Subordinated notes payable 5.75 percent
Debt Instrument [Line Items]
Long term debt interest rate		5.75%
Long-term debt		$ 34,916
Deferred finance costs, net	$ 0	$ 84
Federal Home Loan Bank advances \| Federal Home Loan Bank borrowings, maturity 5/1/2020
Debt Instrument [Line Items]
Short term debt interest rate	2.08%
Short-term debt	$ 130,000
Federal Home Loan Bank advances \| Federal Home Loan Bank borrowings, maturity 5/1/2019
Debt Instrument [Line Items]
Short term debt interest rate		2.62%
Short-term debt		$ 250,000
Federal Home Loan Bank advances \| Federal Home Loan Bank Borrowings, Issued 9/3/2019, maturity 12/2/2019
Debt Instrument [Line Items]
Short term debt interest rate	2.26%
Short-term debt	$ 150,000
Federal Home Loan Bank advances \| Federal Home Loan Bank Borrowings, Issued 7/8/2019, maturity 10/8/2019
Debt Instrument [Line Items]
Short term debt interest rate	2.50%
Short-term debt	$ 50,000
Federal Home Loan Bank advances \| Federal Home Loan Bank Borrowings, Issued 12/31/2018, Maturity 1/2/2019
Debt Instrument [Line Items]
Short term debt interest rate		2.65%
Short-term debt		$ 65,000
Federal Home Loan Bank advances \| Federal Home Loan Bank Borrowings, Issued 10/10/2018, Maturity 1/8/2019
Debt Instrument [Line Items]
Short term debt interest rate		2.54%
Short-term debt		$ 50,000
Line of credit
Debt Instrument [Line Items]
Short term debt interest rate		5.47%
Short-term debt	$ 0	$ 4,250

Borrowings - Narrative (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Line of credit
Short-term Debt [Line Items]
Short-term debt	$ 0	$ 4,250,000
Federal Home Loan Bank
Short-term Debt [Line Items]
Pledged securities, for Federal Home Loan Bank	3,000,000
Texas Capital Bank \| Line of credit
Short-term Debt [Line Items]
Line of credit facility, current borrowing capacity	50,000,000
Bank subsidiary \| Federal Home Loan Bank advances
Short-term Debt [Line Items]
Short-term debt	330,000,000	365,000,000
Bank subsidiary \| Federal Home Loan Bank
Short-term Debt [Line Items]
Pledged securities, for Federal Home Loan Bank	3,000,000
Pledged loans receivable, for Federal Home Loan Bank	1,180,000,000
Bank subsidiary \| Federal Home Loan Bank \| Line of credit
Short-term Debt [Line Items]
Line of credit facility, current borrowing capacity	843,000,000
Bank subsidiary \| M&T Bank \| Line of credit
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
Short-term Debt [Line Items]
Line of credit facility, current borrowing capacity	20,000,000
Short-term debt	0	$ 0
Bank subsidiary \| PNC Bank \| Financial Guarantee
Short-term Debt [Line Items]
Credit cards issued, notional amount	2,600,000
Bank subsidiary \| PNC Bank \| Line of credit
Short-term Debt [Line Items]
Line of credit facility, current borrowing capacity	$ 8,000,000

Borrowings - Interest Expense on Borrowings by Type (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Debt Instrument [Line Items]
Interest expense on borrowings	$ 1,302	$ 1,423	$ 7,380	$ 5,473
Subordinated notes payable
Debt Instrument [Line Items]
Interest expense on borrowings	0	554	1,090	1,661
FHLB borrowings
Debt Instrument [Line Items]
Interest expense on borrowings	1,302	853	6,222	3,743
Line of credit borrowings
Debt Instrument [Line Items]
Interest expense on borrowings	$ 0	$ 16	$ 68	$ 69

Stock Transactions - Narrative (Details) $ / shares in Units, $ in Thousands	1 Months Ended		9 Months Ended
	May 31, 2019 USD ($) $ / shares shares	Mar. 31, 2018 USD ($) $ / shares shares	Sep. 30, 2019 USD ($) $ / shares shares	Sep. 30, 2018 USD ($) $ / shares shares
Class of Stock [Line Items]
Net proceeds from issuance of preferred stock			$ 77,596	$ 38,468
Dividends paid			$ 3,791	1,441
Shares repurchased (shares) \| shares			8,382
Cost of shares repurchased			$ 1,991	$ 4,584
Cost of shares repurchased in connection with exercise, net settlement or vesting of equity awards			173
Series B depositary share
Class of Stock [Line Items]
Issuance of shares (in shares) \| shares	3,200,000
Conversion from depository to preferred shares	0.025
Liquidation preference (usd per share) \| $ / shares	$ 25
Series B depositary share \| Public offering
Class of Stock [Line Items]
Issuance of shares (in shares) \| shares	3,200,000
Series B preferred stock
Class of Stock [Line Items]
Issuance of shares (in shares) \| shares	80,500
Dividend rate	6.375%
Liquidation preference (usd per share) \| $ / shares	$ 1,000
Net proceeds from issuance of preferred stock	$ 77,600
Basis spread	4.088%
Dividends paid			1,800
Series A depositary share
Class of Stock [Line Items]
Issuance of shares (in shares) \| shares		1,600,000
Conversion from depository to preferred shares		0.025
Liquidation preference (usd per share) \| $ / shares		$ 25
Series A depositary share \| Public offering
Class of Stock [Line Items]
Issuance of shares (in shares) \| shares		1,600,000
Series A preferred stock
Class of Stock [Line Items]
Issuance of shares (in shares) \| shares		40,250
Dividend rate		6.75%
Liquidation preference (usd per share) \| $ / shares		$ 1,000
Net proceeds from issuance of preferred stock		$ 38,500
Basis spread				3.985%
Dividends paid			$ 2,000	$ 1,400
Common Stock
Class of Stock [Line Items]
Shares repurchased (shares) \| shares			98,382	169,936
Common Stock \| Share Repurchase Program
Class of Stock [Line Items]
Stock repurchase program, remaining authorized repurchase amount			$ 10,400
Shares repurchased (shares) \| shares			90,000	169,936
Cost of shares repurchased			$ 1,800	$ 4,600
Average cost per share (usd per share) \| $ / shares			$ 20.21	$ 26.97

Stock Transactions - Shares Outstanding Activity (Details) - shares	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Number of Shares Outstanding [Rollforward]
Purchase of treasury stock	(8,382)
Preferred Shares
Number of Shares Outstanding [Rollforward]
Balance, beginning of period (shares)	40,250	0
Issuance of preferred stock	80,500	40,250
Balance, ending of period (shares)	120,750	40,250
Common Stock
Number of Shares Outstanding [Rollforward]
Balance, beginning of period (shares)	28,878,674	28,591,101
Issuance of restricted common stock	550,453	396,113
Forfeitures of restricted common stock	(74,355)	(24,000)
Exercise of stock options	40,580	127,700
Purchase of treasury stock	(98,382)	(169,936)
Balance, ending of period (shares)	29,296,970	28,920,978

Regulatory Capital - Narrative (Details)	9 Months Ended
Regulatory Capital - Narrative (Details)	Sep. 30, 2019	Dec. 31, 2018
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
Percentage conservation buffer required for capital adequacy to risk weighted assets, fully phased-in	2.50%
Percentage conservation buffer required for capital adequacy to risk weighted assets, one-year period phase-in	0.625%
Capital conservation buffer phase-in period (in years)	4 years
Percentage capital conservation buffer	2.50%	1.875%

Regulatory Capital - Regulatory Capital Requirements (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Total risk-based capital (Amount)
Total risk-based capital	$ 552,734	$ 426,066
Total risk-based capital required for capital adequacy	$ 356,596	$ 313,789
Total risk-based capital (Ratio)
Total risk-based capital, ratio	12.40%	10.86%
Total risk-based capital required for capital adequacy, ratio	8.00%	8.00%
Tier 1 risk-based capital (Amount)
Tier 1 risk-based capital	$ 541,505	$ 414,808
Tier 1 risk-based capital required for capital adequacy	$ 267,447	$ 235,342
Tier 1 risk-based capital (Ratio)
Tier 1 risk-based capital, ratio	12.15%	10.58%
Tier 1 risk-based capital required for capital adequacy, ratio	6.00%	6.00%
Common Equity Tier One Risk Based Capital (Amount)
Common equity tier 1 risk-based capital	$ 427,084	$ 378,117
Common equity tier 1 risk-based capital required for capital adequacy	$ 200,585	$ 176,506
Common Equity Tier One Risk Based Capital (Ratio)
Common equity tier 1 risk-based capital, ratio	9.58%	9.64%
Common equity tier 1 risk-based capital required for capital adequacy, ratio	4.50%	4.50%
Tier 1 leverage (Amount)
Tier 1 leverage capital	$ 541,505	$ 414,808
Tier 1 leverage capital required for capital adequacy	$ 273,931	$ 227,851
Tier 1 leverage (Ratio)
Tier 1 leverage capital, ratio	7.91%	7.28%
Tier 1 leverage capital required for capital adequacy, ratio	4.00%	4.00%
Bank subsidiary
Total risk-based capital (Amount)
Total risk-based capital	$ 505,370	$ 437,849
Total risk-based capital required for capital adequacy	355,135	311,497
Total risk-based capital required to be well capitalized	$ 443,919	$ 389,371
Total risk-based capital (Ratio)
Total risk-based capital, ratio	11.38%	11.25%
Total risk-based capital required for capital adequacy, ratio	8.00%	8.00%
Total risk-based capital required to be well capitalized, ratio	10.00%	10.00%
Tier 1 risk-based capital (Amount)
Tier 1 risk-based capital	$ 491,401	$ 424,418
Tier 1 risk-based capital required for capital adequacy	266,352	233,622
Tier 1 risk-based capital required to be well capitalized	$ 355,135	$ 311,497
Tier 1 risk-based capital (Ratio)
Tier 1 risk-based capital, ratio	11.07%	10.90%
Tier 1 risk-based capital required for capital adequacy, ratio	6.00%	6.00%
Tier 1 risk-based capital required to be well capitalized, ratio	8.00%	8.00%
Common Equity Tier One Risk Based Capital (Amount)
Common equity tier 1 risk-based capital	$ 491,401	$ 424,418
Common equity tier 1 risk-based capital required for capital adequacy	199,764	175,217
Common equity tier 1 risk-based capital required to be well capitalized	$ 288,547	$ 253,091
Common Equity Tier One Risk Based Capital (Ratio)
Common equity tier 1 risk-based capital, ratio	11.07%	10.90%
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	$ 491,401	$ 424,418
Tier 1 leverage capital required for capital adequacy	273,036	226,762
Tier 1 leverage capital required to be well capitalized	$ 341,295	$ 283,453
Tier 1 leverage (Ratio)
Tier 1 leverage capital, ratio	7.20%	7.49%
Tier 1 leverage capital required for capital adequacy, ratio	4.00%	4.00%
Tier 1 leverage capital required to be well capitalized, ratio	5.00%	5.00%

Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Net income available to common shareholders	$ 14,372	$ 13,632	$ 41,798	$ 37,863
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Basic weighted average common shares outstanding (shares)	27,863,767	27,588,607	27,861,515	27,603,784
Restricted stock - dilutive (shares)	600,985	863,084	569,260	757,572
Stock options - dilutive (shares)	313,919	498,233	328,633	488,570
Diluted weighted average common shares outstanding (shares)	28,778,671	28,949,924	28,759,408	28,849,926
Earnings per common share:
Earnings per common share, basic (in usd per share)	$ 0.52	$ 0.49	$ 1.50	$ 1.37
Earnings per common share, diluted (in usd per share)	$ 0.50	$ 0.47	$ 1.45	$ 1.31
Anti-dilutive shares (shares)	9,000	4,000	13,000	7,000

Derivatives and Hedging Activity - Financial Position, Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Asset derivatives, fair value	$ 73,030	$ 26,907
Liability derivatives, fair value	76,400	25,518
Other assets
Derivatives, Fair Value [Line Items]
Asset derivatives, fair value	73,030	26,907
Other liabilities
Derivatives, Fair Value [Line Items]
Liability derivatives, fair value	76,400	25,518
Designated as hedging instrument \| Other assets \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Asset derivatives, fair value	0	1,384
Designated as hedging instrument \| Other liabilities \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Liability derivatives, fair value	3,191	0
Not designated as hedging instrument \| Other assets \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Asset derivatives, fair value	73,030	25,523
Not designated as hedging instrument \| Other assets \| Equity products
Derivatives, Fair Value [Line Items]
Asset derivatives, fair value	0
Not designated as hedging instrument \| Other liabilities \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Liability derivatives, fair value	73,100	$ 25,518
Not designated as hedging instrument \| Other liabilities \| Equity products
Derivatives, Fair Value [Line Items]
Liability derivatives, fair value	$ 109

Derivatives and Hedging Activity - Offsetting of Derivative Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross Amounts of Recognized Assets	$ 73,030	$ 26,907
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Assets presented in the Statement of Financial Position	73,030	26,907
Financial Instruments	(248)	(9,587)
Cash Collateral Received	0	0
Net Amount	$ 72,782	$ 17,320

Derivatives and Hedging Activity - Offsetting of Derivative Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross Amounts of Recognized Liabilities	$ 76,400	$ 25,518
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Liabilities presented in the Statement of Financial Position	76,400	25,518
Financial Instruments	(248)	(9,587)
Cash Collateral Posted	(75,789)	(3,941)
Net Amount	$ 363	$ 11,990

Derivatives and Hedging Activity - Interest Rate Derivative Transactions (Details) - Cash flow hedging - Interest rate swaps - Designated as hedging instrument $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($)
Derivative [Line Items]
Notional Amount	$ 200,000
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months	573
Issued 1/8/2018, Maturity 1/8/2021
Derivative [Line Items]
Notional Amount	$ 50,000
Effective Rate	2.21%
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months	$ 207
Remaining Term (in Months)	15 months
Issued 5/30/2019, Maturity 6/1/2022
Derivative [Line Items]
Notional Amount	$ 50,000
Effective Rate	2.05%
Estimated Increase/ (Decrease) to Interest Expense in the Next Twelve Months	$ 125
Remaining Term (in Months)	32 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	$ 118
Remaining Term (in Months)	44 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	$ 123
Remaining Term (in Months)	56 months

Derivatives and Hedging Activity - Gain (Loss) in Statement of Financial Performance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Not designated as hedging instrument
Derivatives, Fair Value [Line Items]
Realized Gain (Loss) Recognized in Income on Derivatives	$ (49)	$ 0	$ (168)	$ 22
Interest rate swaps \| Not designated as hedging instrument \| Non-interest income
Derivatives, Fair Value [Line Items]
Realized Gain (Loss) Recognized in Income on Derivatives	(17)	0	(59)	22
Equity products \| Not designated as hedging instrument \| Non-interest income
Derivatives, Fair Value [Line Items]
Realized Gain (Loss) Recognized in Income on Derivatives	(32)	0	(109)	0
Cash flow hedging \| Interest rate swaps \| Designated as hedging instrument \| Interest expense
Derivatives, Fair Value [Line Items]
Realized Gain (Loss) Recognized in Income on Derivatives	156	412	1,277	952
Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivatives	$ (967)	$ 157	$ (3,293)	$ 1,439

Derivatives and Hedging Activity - Narrative (Details) $ in Millions	Sep. 30, 2019 USD ($)
Interest rate swaps
Derivatives, Fair Value [Line Items]
Termination value of derivatives, including accrued interest, in a net liability position	$ 75.8
Collateral already posted amount	80.1
Not designated as hedging instrument \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Derivative, aggregate notional amount	2,590.0
Not designated as hedging instrument \| Equity products
Derivatives, Fair Value [Line Items]
Derivative, aggregate notional amount	$ 2.5

Disclosures About Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financial assets:
Debt securities available-for-sale	$ 261,180	$ 233,296
Equity securities	4,807	12,661
Level 1
Financial assets:
Equity securities	4,807	12,661
Level 2
Financial assets:
Debt securities available-for-sale	261,180	233,296
Level 3
Financial liabilities:
Acquisition earn out liability	0	2,920
Fair value, measurements, recurring
Financial assets:
Total financial assets	339,017	272,864
Financial liabilities:
Acquisition earn out liability		2,920
Total financial liabilities	76,400	28,438
Fair value, measurements, recurring \| Level 1
Financial assets:
Total financial assets	4,807	12,661
Financial liabilities:
Acquisition earn out liability		0
Total financial liabilities	109	0
Fair value, measurements, recurring \| Level 2
Financial assets:
Total financial assets	334,210	260,203
Financial liabilities:
Acquisition earn out liability		0
Total financial liabilities	76,291	25,518
Fair value, measurements, recurring \| Level 3
Financial assets:
Total financial assets	0	0
Financial liabilities:
Acquisition earn out liability		2,920
Total financial liabilities	0	2,920
Fair value, measurements, recurring \| Interest rate swaps
Financial assets:
Interest rate swaps	73,030	26,907
Financial liabilities:
Interest rate swaps	76,291	25,518
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	73,030	26,907
Financial liabilities:
Interest rate swaps	76,291	25,518
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 \| Equity swaps
Financial liabilities:
Interest rate swaps	109
Fair value, measurements, recurring \| Equity swaps \| Level 1
Financial liabilities:
Interest rate swaps	109
Fair value, measurements, recurring \| Equity swaps \| Level 2
Financial liabilities:
Interest rate swaps	0
Fair value, measurements, recurring \| Equity swaps \| Level 3
Financial liabilities:
Interest rate swaps	0
Fair value, measurements, recurring \| Corporate bonds
Financial assets:
Debt securities available-for-sale	185,965	151,063
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	185,965	151,063
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	17,354	16,849
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	17,354	16,849
Fair value, measurements, recurring \| Trust preferred securities \| Level 3
Financial assets:
Debt securities available-for-sale	0	0
Fair value, measurements, recurring \| Non-agency collateralized loan obligations
Financial assets:
Debt securities available-for-sale		390
Fair value, measurements, recurring \| Non-agency collateralized loan obligations \| Level 1
Financial assets:
Debt securities available-for-sale		0
Fair value, measurements, recurring \| Non-agency collateralized loan obligations \| Level 2
Financial assets:
Debt securities available-for-sale		390
Fair value, measurements, recurring \| Non-agency collateralized loan obligations \| Level 3
Financial assets:
Debt securities available-for-sale		0
Fair value, measurements, recurring \| Agency collateralized mortgage obligations
Financial assets:
Debt securities available-for-sale	28,866	33,718
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	28,866	33,718
Fair value, measurements, recurring \| Agency collateralized mortgage obligations \| Level 3
Financial assets:
Debt securities available-for-sale	0	0
Fair value, measurements, recurring \| Agency mortgage-backed securities
Financial assets:
Debt securities available-for-sale	18,895	21,264
Fair value, measurements, recurring \| Agency mortgage-backed securities \| Level 1
Financial assets:
Debt securities available-for-sale	0	0
Fair value, measurements, recurring \| Agency mortgage-backed securities \| Level 2
Financial assets:
Debt securities available-for-sale	18,895	21,264
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	10,100	10,012
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	10,100	10,012
Fair value, measurements, recurring \| Agency debentures \| Level 3
Financial assets:
Debt securities available-for-sale	0	0
Fair value, measurements, recurring \| Equity securities
Financial assets:
Equity securities	4,807	12,661
Fair value, measurements, recurring \| Equity securities \| Level 1
Financial assets:
Equity securities	4,807	12,661
Fair value, measurements, recurring \| Equity securities \| Level 2
Financial assets:
Equity securities	0	0
Fair value, measurements, recurring \| Equity securities \| Level 3
Financial assets:
Equity securities	$ 0	$ 0

Disclosures About Fair Value of Financial Instruments - Fair Value Measurements, Nonrecurring (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Level 3
Financial assets:
Other real estate owned	$ 4,250	$ 3,424
Fair value, measurements, nonrecurring
Financial assets:
Loans measured for impairment, net	13	1,800
Other real estate owned	4,250	3,424
Total assets	4,263	5,224
Fair value, measurements, nonrecurring \| Level 1
Financial assets:
Loans measured for impairment, net	0	0
Other real estate owned	0	0
Total assets	0	0
Fair value, measurements, nonrecurring \| Level 2
Financial assets:
Loans measured for impairment, net	0	0
Other real estate owned	0	0
Total assets	0	0
Fair value, measurements, nonrecurring \| Level 3
Financial assets:
Loans measured for impairment, net	13	1,800
Other real estate owned	4,250	3,424
Total assets	$ 4,263	$ 5,224

Disclosures About Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Specific allowance for loan losses	$ 171	$ 437

Disclosures About Fair Value of Financial Instruments - Fair Value Inputs, Assets, Quantitative Information (Details) - Level 3 $ in Thousands	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Acquisition earn out liability \| Income approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value		$ 2,920
Acquisition earn out liability \| Income approach \| Run-rate revenue multiple; client retention
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Acquisition earn out liability		1.6
Loans measured for impairment, net \| Collateral
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 13	$ 1,800
Loans measured for impairment, net \| Collateral \| Appraisal value and discount due to salability conditions
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans measured for impairment, net	0.00	0.16
Other real estate owned \| Collateral
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 4,250	$ 3,424
Other real estate owned \| Collateral \| Appraisal value and discount due to salability conditions
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other real estate owned	0.18	0.10

Disclosures About Fair Value of Financial Instruments - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financial assets:
Debt securities available-for-sale	$ 261,180	$ 233,296
Debt securities held-to-maturity	189,218	196,823
Equity securities	4,807	12,661
Investment management fees receivable, net	7,453	7,299
Interest rate swaps	73,030	26,907
Financial liabilities:
Derivative liability	76,400	25,518
Level 1
Financial assets:
Cash and cash equivalents	383,948	189,985
Equity securities	4,807	12,661
Level 1 \| Equity swaps
Financial liabilities:
Derivative liability	109	0
Level 2
Financial assets:
Debt securities available-for-sale	261,180	233,296
Debt securities held-to-maturity	189,218	196,823
Federal Home Loan Bank stock	15,524	24,671
Accrued interest receivable	22,157	20,702
Investment management fees receivable, net	7,453	7,299
Bank owned life insurance	69,607	68,309
Financial liabilities:
Deposits	6,108,128	5,048,079
Borrowings, net	330,020	404,084
Level 2 \| Interest rate swaps
Financial assets:
Interest rate swaps	73,030	26,907
Financial liabilities:
Derivative liability	76,291	25,518
Level 3
Financial assets:
Loans and leases held-for-investment, net	5,994,960	5,119,562
Other real estate owned	4,250	3,424
Financial liabilities:
Acquisition earn out liability	0	2,920
Carrying amount \| Level 1
Financial assets:
Cash and cash equivalents	383,948	189,985
Equity securities	4,807	12,661
Carrying amount \| Level 1 \| Equity swaps
Financial liabilities:
Derivative liability	109	0
Carrying amount \| Level 2
Financial assets:
Debt securities available-for-sale	261,180	233,296
Debt securities held-to-maturity	187,210	196,131
Federal Home Loan Bank stock	15,524	24,671
Accrued interest receivable	22,157	20,702
Investment management fees receivable, net	7,453	7,299
Bank owned life insurance	69,607	68,309
Financial liabilities:
Deposits	6,094,605	5,050,461
Borrowings, net	330,000	404,166
Carrying amount \| Level 2 \| Interest rate swaps
Financial assets:
Interest rate swaps	73,030	26,907
Financial liabilities:
Derivative liability	76,291	25,518
Carrying amount \| Level 3
Financial assets:
Loans and leases held-for-investment, net	6,003,306	5,119,665
Other real estate owned	4,250	3,424
Financial liabilities:
Acquisition earn out liability	$ 0	$ 2,920

Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance			$ 479,354	$ 389,071
Net other comprehensive income (loss)	$ (170)	$ (388)	801	(1,149)
Ending balance	604,507	467,620	604,507	467,620
Debt Securities
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	1,230	(833)	(2,363)	172
Change in unrealized holding gains (losses)	787	(192)	4,477	(1,517)
Gains reclassified from other comprehensive income	(101)	0	(198)	(5)
Ending balance	1,916	(1,025)	1,916	(1,025)
Debt Securities \| Adjustments for New Accounting Pronouncement
Accumulated Other Comprehensive Income [Roll Forward]
Net other comprehensive income (loss)	686	(192)	4,279	(1,197)
Debt Securities \| ASU 2016-01
Accumulated Other Comprehensive Income [Roll Forward]
Reclassification for equity securities under ASU 2016-01					$ 0	$ 286
Debt Securities \| ASU 2018-02
Accumulated Other Comprehensive Income [Roll Forward]
Reclassification for certain income tax effects under ASU 2018-02			0	39
Derivatives
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(1,590)	1,878	1,032	1,074
Change in unrealized holding gains (losses)	(736)	120	(2,506)	1,103
Gains reclassified from other comprehensive income	(120)	(316)	(972)	(730)
Ending balance	(2,446)	1,682	(2,446)	1,682
Derivatives \| Adjustments for New Accounting Pronouncement
Accumulated Other Comprehensive Income [Roll Forward]
Net other comprehensive income (loss)	(856)	(196)	(3,478)	608
Derivatives \| ASU 2016-01
Accumulated Other Comprehensive Income [Roll Forward]
Reclassification for equity securities under ASU 2016-01					0	0
Derivatives \| ASU 2018-02
Accumulated Other Comprehensive Income [Roll Forward]
Reclassification for certain income tax effects under ASU 2018-02			0	235
Total
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(360)	1,045	(1,331)	1,246
Change in unrealized holding gains (losses)	51	(72)	1,971	(414)
Gains reclassified from other comprehensive income	(221)	(316)	(1,170)	(735)
Net other comprehensive income (loss)			801	(1,149)
Ending balance	(530)	657	(530)	657
Total \| Adjustments for New Accounting Pronouncement
Accumulated Other Comprehensive Income [Roll Forward]
Net other comprehensive income (loss)	$ (170)	$ (388)	801	(589)
Total \| ASU 2016-01
Accumulated Other Comprehensive Income [Roll Forward]
Reclassification for equity securities under ASU 2016-01					$ 0	$ 286
Total \| ASU 2018-02
Accumulated Other Comprehensive Income [Roll Forward]
Reclassification for certain income tax effects under ASU 2018-02			$ 0	$ 274

Segments - Schedule of Segment Reporting Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) segment	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment			2
Assets	$ 7,198,449		$ 7,198,449		$ 6,035,655
Income statement data:
Interest income	67,732	$ 52,424	196,973	$ 141,624
Interest expense	35,416	23,605	102,982	57,752
Net interest income	32,316	28,819	93,991	83,872
Provision (credit) for loan and lease losses	(607)	(234)	(1,696)	376
Net interest income after provision for loan and lease losses	32,923	29,053	95,687	83,496
Non-interest income:
Net gain on the sale and call of debt securities	206	0	346	6
Other non-interest income	5,135	2,923	11,365	7,914
Total non-interest income	14,243	12,751	39,291	36,342
Non-interest expense:
Intangible amortization expense	502	502	1,506	1,465
Other non-interest expense	27,271	25,184	80,524	73,389
Total non-interest expense	27,773	25,686	82,030	74,854
Income before tax	19,393	16,118	52,948	44,984
Income tax expense (benefit)	3,059	1,807	7,359	5,680
Net income	16,334	14,311	45,589	39,304
Investment management fees
Non-interest income:
Total non-interest income	8,902	9,828	27,580	28,422
Parent and other
Segment Reporting Information [Line Items]
Assets	(7,817)		(7,817)		(4,404)
Income statement data:
Interest income	12	70	111	200
Interest expense	(39)	567	1,091	1,725
Net interest income	51	(497)	(980)	(1,525)
Provision (credit) for loan and lease losses	0	0	0	0
Net interest income after provision for loan and lease losses	51	(497)	(980)	(1,525)
Non-interest income:
Net gain on the sale and call of debt securities	0	0	0	0
Other non-interest income	31	73	881	38
Total non-interest income	(83)	(13)	549	(161)
Non-interest expense:
Intangible amortization expense	0	0	0	0
Other non-interest expense	136	9	478	390
Total non-interest expense	136	9	478	390
Income before tax	(168)	(519)	(909)	(2,076)
Income tax expense (benefit)	(86)	(151)	(296)	(591)
Net income	(82)	(368)	(613)	(1,485)
Parent and other \| Investment management fees
Non-interest income:
Total non-interest income	(114)	(86)	(332)	(199)
Bank \| Operating segments
Segment Reporting Information [Line Items]
Assets	7,113,983		7,113,983		5,947,165
Income statement data:
Interest income	67,720	52,354	196,862	141,424
Interest expense	35,455	23,038	101,891	56,027
Net interest income	32,265	29,316	94,971	85,397
Provision (credit) for loan and lease losses	(607)	(234)	(1,696)	376
Net interest income after provision for loan and lease losses	32,872	29,550	96,667	85,021
Non-interest income:
Net gain on the sale and call of debt securities	206	0	346	6
Other non-interest income	5,113	2,850	10,467	7,875
Total non-interest income	5,319	2,850	10,813	7,881
Non-interest expense:
Intangible amortization expense	0	0	0	0
Other non-interest expense	18,949	17,002	56,872	49,011
Total non-interest expense	18,949	17,002	56,872	49,011
Income before tax	19,242	15,398	50,608	43,891
Income tax expense (benefit)	3,142	1,676	6,825	5,485
Net income	16,100	13,722	43,783	38,406
Bank \| Operating segments \| Investment management fees
Non-interest income:
Total non-interest income	0	0	0	0
Investment management \| Operating segments
Segment Reporting Information [Line Items]
Assets	92,283		92,283		$ 92,894
Income statement data:
Interest income	0	0	0	0
Interest expense	0	0	0	0
Net interest income	0	0	0	0
Provision (credit) for loan and lease losses	0	0	0	0
Net interest income after provision for loan and lease losses	0	0	0	0
Non-interest income:
Net gain on the sale and call of debt securities	0	0	0	0
Other non-interest income	(9)	0	17	1
Total non-interest income	9,007	9,914	27,929	28,622
Non-interest expense:
Intangible amortization expense	502	502	1,506	1,465
Other non-interest expense	8,186	8,173	23,174	23,988
Total non-interest expense	8,688	8,675	24,680	25,453
Income before tax	319	1,239	3,249	3,169
Income tax expense (benefit)	3	282	830	786
Net income	316	957	2,419	2,383
Investment management \| Operating segments \| Investment management fees
Non-interest income:
Total non-interest income	$ 9,016	$ 9,914	$ 27,912	$ 28,621

Subsequent Events (Details) - USD ($)	Oct. 17, 2019	Oct. 15, 2019	Sep. 30, 2019
Line of credit \| Texas Capital Bank
Subsequent Event [Line Items]
Line of credit facility, current borrowing capacity			$ 50,000,000
Line of credit \| Texas Capital Bank \| Subsequent Event
Subsequent Event [Line Items]
Line of credit facility, current borrowing capacity	$ 50,000,000.0
Series A preferred stock \| Subsequent Event
Subsequent Event [Line Items]
Dividend payable		$ 679,000
Series A depositary share \| Subsequent Event
Subsequent Event [Line Items]
Dividends payable (usd per share)		$ 0.42
Series B preferred stock \| Subsequent Event
Subsequent Event [Line Items]
Dividend payable		$ 1,300,000
Series B depositary share \| Subsequent Event
Subsequent Event [Line Items]
Dividends payable (usd per share)		$ 0.40